“DEI” IN CROSS-CULTURAL NEGOTIATIONS – OPPORTUNITIES OR THREATS? | Herbert Seiter | TEDxASUCQ

Introduction to Negotiations

• A negotiation is a strategic discussion between two or more parties to resolve a problem and/or reach an agreement satisfying for all parties involved (26s).
• Negotiations occur in both professional and personal life, involving interactions with bosses, coworkers, subordinates, customers, clients, suppliers, distributors, parents, spouses, children, siblings, and friends (1m7s).
• Not everyone is successful in negotiations, and training from specialists or taking courses is recommended to improve negotiation skills (1m30s).

Culture and DEI in Negotiations

• Culture is a set of habits, traditions, customs, belief systems, and values of a specific group of people, and there are no good or bad cultures, only different ones that deserve respect (1m53s).
• Diversity, Equality, and Inclusion (DEI) play a crucial role in cross-cultural negotiations (2m12s).
• The negotiation phases remain the same across different countries, but the behavior of executives from different cultures may vary during these phases (2m31s).

Pre-Negotiation Preparation

• Before negotiations, it is essential to define one's objectives, strategies, walkaway price, and best alternative to a negotiated agreement (Plan B) (3m0s).
• Understanding the counterpart's objectives, strategies, and decision-making level is vital in cross-cultural negotiations, as decision-making processes differ across countries (3m39s).

Understanding Decision-Making in Different Cultures

• In group decision-making cultures, every opinion is valid and respected, and decisions are made collectively (4m12s).
• Experienced negotiators identify the decision maker but treat all team members with respect and focus slightly more on the decision maker (4m54s).
• In cross-cultural negotiations, it's essential to let the decision-maker know that you're aware of who they are and to treat everyone with respect, as DEI (Diversity, Equity, and Inclusion) is all about respect (5m13s).

Knowing Yourself and Your Counterpart

• Knowing one's own strengths, weaknesses, and limitations, as well as those of the other party, is crucial in negotiations, as emphasized by Sun Tzu's phrase "know your enemy and know yourself" (5m53s).
• However, it's essential to approach negotiations as equals, not as enemies, and to work collaboratively to reach an agreement (6m16s).

DEI and Respect in Negotiations

• DEI should be a constant presence in negotiations, and it's essential to have respect for all parties involved, as Albert Einstein said, "you can be an internationalist without being indifferent to the member of one's tribe" (6m52s).
• Every country has a dominant culture, but also micro and macro cultures that need to be respected, such as the different cultures within the US, including Native Americans, African Americans, Asians, Latin Americans, and European Americans (7m35s).
• Each of these micro cultures has its own unique characteristics, and it's essential to be aware of these differences to navigate cross-cultural negotiations successfully, as illustrated by the example of Mexico's dominant culture and various microcultures (8m47s).

Avoiding Ethnocentrism

• Ethnocentrism, or the belief that one's own culture is superior to others, is a bad idea and can hinder successful cross-cultural negotiations, as it can lead to misunderstandings and conflicts (9m57s).
• In cross-cultural negotiations, it's essential to avoid an ethnocentric approach and instead, be respectful of other cultures and their protocols, to ensure a successful outcome (10m28s).

Diversity in Negotiation Teams

• A negotiation team should be diverse, as diversity brings more creativity, helping to create more and better options to solve problems or reach agreements (10m49s).
• The Harvard method of negotiation emphasizes separating people from problems and being soft on people, but hard on problems, which inherently includes diversity, equity, and inclusion (DEI) (11m36s).
• In negotiations, all parties are equal, and no one is more important than the other, making it essential to treat everyone with respect and include their opinions (12m12s).

Role-Play Exercise and Cultural Understanding

• When training corporations and international executives, a role-play exercise is used to teach negotiation skills, where teams are assigned to represent different cultures and study their respective negotiation styles (12m38s).
• In a modified version of the role-play exercise, teams were not informed about the culture they would be negotiating with, resulting in difficulties, arguments, and aggressive behavior during the negotiation (14m57s).
• This modified exercise demonstrates the importance of understanding and preparing for the other party's culture in negotiations, as it can significantly impact the outcome (15m18s).
• When people experience cultural shock during cross-cultural negotiations, they often say they would have researched the country's behavior and customs beforehand if they had known they would be negotiating with people from that culture, which is a logical but intellectually understood response, not an emotional one (15m28s).

Analyzing Negotiation Outcomes

• After a failed negotiation, people usually go back to the office, identify the problem, and try to fix it for the next occasion, but when they achieve their objective and exceed expectations, they often just celebrate without analyzing what made them successful (16m40s).
• Experienced negotiators, however, recommend analyzing what made the negotiation successful and thinking about what else can be done for the other party to sweeten the deal, which can lead to reciprocity and a better outcome for both parties (17m48s).
• This approach can lead to maximizing and optimizing the benefits for both parties, making the negotiation even more successful, which is what successful negotiation is all about, and can only be achieved with respect for the other party's culture (18m58s).

Respect and Cultural Sensitivity

• Respect is a key aspect of DEI (Diversity, Equity, and Inclusion), and being respectful to others is crucial in cross-cultural negotiations (19m5s).
• When people from different cultures try to respect each other's customs, they may end up exceeding cultural sensitivity, leading to unexpected and positive outcomes, such as forming lasting friendships (19m39s).
• It's better to be excessively cautious and respectful when dealing with people from other cultures, rather than risking misunderstandings or offense (20m25s).

Steps to Effective Cross-Cultural Negotiation

• To effectively navigate cross-cultural negotiations, it is essential to remember the importance of diversity, equity, and inclusion.
• The first step is to learn how to negotiate professionally within one's own country and culture (20m45s).
• The second step involves learning to understand and appreciate cultural differences (20m56s).
• The third step requires learning how to negotiate professionally across cultures (21m3s).
• The fourth step involves reviewing negotiation successes to identify areas for improvement and maximize benefits for both parties (21m11s).
• The final step emphasizes the importance of valuing diversity, equity, and inclusion in all aspects of life to avoid disrespecting others and promote social harmony (21m34s).
• By following these steps, individuals can create successful deals and make a positive impact (21m52s).