Chile: Let's Make a Deal! - Part 1
From ExecutivePlanet.com
What you should know before negotiating
Third party introductions, through institutions such as banks and consulting firms, are often a necessary prelude to conducting business in Chile.
Have your business card translated into Spanish on the reverse side. Bring a plentiful supply of cards, since Chilean businesspeople will be keen to exchange them--customarily after the initial handshake.
Smiling and making eye contact are part of the ritual of presenting and receiving cards. Also, take a few moments to look admiringly at your counterpart's business card after it is handed to you.
This can be a very formal society, and it is considered important to keep any business cards you receive in excellent condition. Investing in a card case will be helpful in ensuring that your cards stay well preserved. Moreover, when you are presented with a card, it creates a better impression to place it in a special case, rather than hastily into your back pocket--these distinctions will be noticed.
In Chilean business culture, interpersonal skills such as the ability to "fit in" and maintain cordial relations with the group are sometimes considered more important than professional competence and experience. Moreover, establishing rapport and friendship remains key to conducting business and effective problem-solving.
South Americans generally converse in closer proximity than North Americans; do your best to adapt to this practice--it may be taken personally if you back away from someone.
Chilean business culture has a definite hierarchical order and you will be expected to defer to the most senior person present. If you are unsure who is the most senior individual, one way of understanding the "chain of command" is by observing the amount of deference given to others during a meeting. Watching how the participants treat each other can be very telling, especially in a society as status-conscious as Chile.
Business discussions should be preceded by some preliminary "small talk."
An initial visit should be made by an upper-level executive, accompanied by mid-level executives. Mid-level executives will attend subsequent visits to conduct negotiations that go into greater depth.
Your Chilean counterparts may appear formal during an initial meeting, but the warmth will eventually increase in subsequent encounters.
Conservative values prevail in politics, economics, and social attitudes. Honesty and integrity are highly valued. A sense of humour is appreciated, although for the most part, meetings remain intensely focused and serious.
Personal honour is very important to Latin American businesspeople; refrain from publicly criticizing or patronizing others, and doing anything else that might create embarrassment.
Displaying kindness and respect towards other people are valued qualities, and there is a tendency to avoid aggressive behaviour. It's important to be empathetic in your dealings, especially with those less fortunate than you. Moreover, you will find that expressing concern for the country's welfare and the Chileans you deal with is an appreciated gesture.
Be aware that Chileans tend to have an inherent sense of courtesy that sometimes causes them to say what they think they want you to hear, rather than give a candid response.
In negotiations, feelings sometimes take precedence over facts. Among Chileans, perceptions of the truth can be subjective and personal. Catholic or Protestant doctrine can also be a profound influence in thinking.
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