Germany: Let's Make a Deal! - Part 1

From ExecutivePlanet.com

What you should know before negotiating

Bring plenty of business cards. Businesspeople from the Far East and Arab countries should provide the English translation of the information on one side of their cards, as well as the romanization of their names, for easier initial communication. Unless you will be exclusively dealing with Germans, it is unnecessary to have the reverse side translated into German.

<google>WIKI</google>

Germans, like other Europeans, write their first names before their family names and should be addressed by the academic title given on their card [e.g. “Dr.”]. Include your full title or position, and any university degrees you have earned or optionally professional organizations with which you are affiliated. When designing your card, keep in mind that German businesspeople will want to learn as much about your background and qualifications as possible.

Unless you are in the IT branch of business, meetings normally follow a formal procedure presided over by the chairperson of the meeting. Follow the example of the senior participants as to how informal or formal you should act, dress, and sit. If it is the very first meeting for you in Germany or in a particular company and you are unsure about in-house procedures, do not hesitate to ask your host in private what you should expect or do. Do not think that this would put your host in any uncomfortable or awkward position; neither should you yourself feel embarrassed about having to ask. Germans are very straightforward and direct, especially in the business environment. It is part of their normal communication behavior for someone to openly ask for clarification. This is to prevent complications later when it is revealed by accident that someone had not understood instructions or expectations.

The German side will arrive at the meeting well-informed, and will expect the same from you. Even at initial meetings where, in your culture, you may spend most of the time getting acquainted and building a personal relationship between you and a potential business partner, expect the Germans to address issues, problems and facts through very technical communication behavior. If this is not your intention in the initial meetings, make a point of clarifying your intentions and expectations beforehand, so that both sides are aware of the other side's expectations and likely communication behavior.

Because Germans are schedule-oriented for a most efficient management of business time, expect their business communication behaviour to be very agenda-based. Germans tend to be intensely analytical thinkers, requiring lots of facts and examples from the other side to back up their position. Objective facts are the basis for truth in German business culture, and legalistic, rational reasoning is the cornerstone of business negotiations and communication. Ultimately, personal feelings and relationships cannot be relevant to business negotiations, as this can compromise the fairness or integrity of the deal.

Contracts, therefore, if not holy, are certainly final after signing. Maneuvering for further concessions is not possible, unless both sides agree on it. Failure to honor the terms and conditions of a signed contract can lead to legal action taken against the partner. Businesspeople from cultures that traditionally regard contracts as mere “statements of intent” which later respond to the realities and nature of the partners' relationship should not expect German enterprises to be able to adapt too much to this way of thinking. Attempts to continue negotiations or revise fixed terms will create distrust and suspicion and may be grounds to terminate the agreement.

Submit a Comment on this Article