Rachel FeldsteinOmolara Onaolapo

Justin RaderMaritza Vazquez

Topics of DiscussionInfluence of CommunismNegotiation Styles

USA versus RussiaEtiquettePre-NegotiationBargainingReaching an Agreement

Lasting Effects of CommunismNegotiations

Unique aspect in RussiaEffect of communism and the cold war

USSR dissolvedApproximately 15 different sovereign statesVarious aspects from these different countries

*Cyberlink.com

Communist RussiaGoal was for everyone to be the sameDifferences threatened the collective society

Current government Officially recognizes and tolerates individuality

General populationReacts violently to “above average”Lasting effects of Communism

*http://www.grin.com/e-book/26493/doing-business-in-russia

Lasting Effects of Communism

Slow transitionIndividualismProfit-maximizationPersonal initiative

Perestroika (restructuring) Mindset regarding western thought Age factor regarding acceptance

*http://www.grin.com/e-book/26493/doing-business-in-russia

Lasting Effects of Communism

American persuasion in Russian negotiations must be done tactfullyMotivationFair playAccountability Goodwill, etc

*http://www.grin.com/e-book/26493/doing-business-in-russia

Lasting Effects of Communism

Historically unstable political environmentNegotiations

Focus on the short term gains Long term gains are not a priority Fear that negotiated contracts may become

illegal later

*Sandia.gov

Lasting Effects of Communism

Understand some stages of USSR negotiationsPrepositioningIntelligence gatheringOpening movesMidgameSecrecyExploitation of entertainmentEnd game

Understand their emotional and historical baggageBe sensitive, but not overly so, of their previous

political situation*http://findarticles.com/p/articles/mi_m0KNN/

is_2000_Winter/ai_80305813/pg_2/

Lasting Effects of Communism

DifferencesU.S.A Russia

Primary Style Factual: Appeals to logic

Axiomatic: Appeals to ideals

Conflict: Countered with…

Objective facts Asserted ideals

Making Concessions

Small, early on Few, if any, made

Response to Other’s Concessions

Reciprocate concession

Viewed as weakness, rarely reciprocated

Differences, continued

U.S.A Russia

Relationship Short term No continuity

Authority Broad Limited

Initial Position Moderate Extreme

Deadline Very important Ignored

EtiquetteLanguage

BarrierInterpreter

LocationHistorically, formal settingBusiness meals, more common

AttireConservative and QualityForeign women vs. Russian women

EtiquetteGender

Traditionally male dominatedWorkforce 47% women

Low wage jobs: healthcare, education, office assistants

Physical ContactHandshakeEye contact

Social EventsSocial athleticism

EtiquetteGifts

Extensive gifting traditionsBe prepared for first meetingAvoid inexpensive gifts

No vodka!

BribesSolicited boldly without reserveOrganized crime threat

Pre-NegotiationPatience and Flexibility

Slow-movingPersonal relationshipsBusiness cardsIntrusionsBe preparedConceal information

Pre-NegotiationSetting up a meeting can be difficult

Impossible… To leave messages Set appointments

Confirm a meetingObtain written confirmation

Time and PunctualityLateness is commonArrive punctually

BargainingInterpreterCautious pre-positioning

Extreme opening offerOpposing positionsNeed to look good

BargainingSlow pace of negotiations

Two or three meetingsDetect weaknessesConsensusMissed deadlines

Rapid conclusionsNothing else to gain

Reaching an AgreementThe Negotiating Table

Know the decision makers Who has authority to make decisions?

Display unity E pluribus unum

Concessions When and how concessions are made

Consider negotiating away from the negotiation table

Reaching an AgreementDeciphering what they are saying

“I do not have the authority”What does “No” really mean“In principle, it can be done”

Influences from the outsideIndependencePolitical and economical

Reaching an AgreementOther Important Consideration

Feeling versus FactsTaking RisksBuilding Trust

Protokol (meeting minutes)A joint statement or memorandum of

understandingReciprocity

“I get half, you get half”

The AgreementDifferent types of agreements

Agreement “in principle”Cherry PickingThe departure-time decisionAd referendum

AgreementsWritten contractsLegal expertiseLanguage of agreements

After the AgreementCelebration

Festive lunch or dinnerAgreements and signed contracts may not

mean that the negotiation stopsDealing after the contract is signedNurture the relationship

ImplementationLegal, political and ideological considerations

After the AgreementProblems after agreements are reached

Ignoring the termsTimelinesThings offered cannot be doneWaiting on others

Getting things back on trackReestablishing the relationshipTrip to Russia

RecommendationsRemember…

Be sensitive, but not overly so, to past political issues

Dress conservativelyBe prepared to offer authentic giftsSlow pace negotiations, time treated loosely

Have patience Have a good interpreter

Display group unityBe confident in your demandsDon’t ignore relationship after signing