Italy: Let's Make a Deal!
From ExecutivePlanet.com
What you should know before negotiating
Most Italians who work for international organisations or large companies in Italy speak very good English but this is not always the case.
Italians who work in family-run or smaller companies may speak very little English or perhaps have only one or two managers in the company who are fluent. So it is advisable to ascertain the language level of the people you are meeting with while setting up the meeting. Organising for an interpreter may significantly help discussions and negotiations.
Be aware that the person who speaks the best English and with whom you are having the meeting is not necessarily the decision maker. This is especially true in family run businesses. If this is the case it is vital that you have an opportunity to meet the key decision maker and that they sign off on any agreements made. Without this you may have difficulties later with commitment and implementation.
If your Italian counterpart does speak reasonable English it is worth ensuring that your presentation materials and discussions are kept clear and simple. It is highly unlikely that he or she would admit to not understanding parts of the conversation.
When selecting your negotiating team, be aware that Italians generally prefer to do business with only the most important people in any organization. Sending a high-flying youngster to negotiate with an Italian senior manager is doomed from the off set!
The use of business cards is common – it might be worth having your card translated into Italian on the reverse side. Any advanced educational degrees and your full title or position should be featured on your business card. Italian business people will want to know whom they are dealing with and your position in your company.
You will probably notice that very senior Italian businesspeople usually have less information on their business cards.
In Italian culture, people are traditionally expected to behave with a sense of decorum and formality. This concept is known as "bella figura" ["beautiful figure"] and is often used in reference to the ability to put on a good performance or simply to present oneself well. What other people think is extremely important, and your actions must always at least appear to be the "right" thing to do. Moreover, there is a belief that behaving appropriately, especially out of loyalty to family members, friends, is the correct way to behave.
The initial meeting is usually conducted in the office, where your Italian counterparts will make an assessment of you, your proposal and company. It will be in your best interests to present a warm, dignified demeanour during the meeting.
The goal, at least for the initial meeting, is to start to build a good relationship. Once trust, respect and mutual liking have been established, the details of the individual proposal can be agreed upon. Initial meetings decide if you are a company/person with whom they can or want to do business. The details of the sale or contract come only after mutual good feeling and trust have been established.
Although establishing a good relationship is important to present a carefully planned, logically organized proposal and interesting proposal. All presentation materials and packaging should be aesthetically pleasing. In this culture, it's essential that things [as well as people] look good: appearance is frequently considered more important than "what's inside."
Italians are generally receptive to new ideas and concepts, although you'll perceive little change in the opinions of the participants.
Hierarchy is key, especially in larger traditional Italian businesses where the importance of the "cordata" [chain of command] cannot be underestimated. Moreover, a belief in status and hierarchy permeates all aspects of Italian society.
There is tremendous respect for power, as well as age.
What you should know before negotiating
There are not large numbers of women at the highest levels of business and government in Italy. Women may be treated with particular respect by Italian men, but not necessarily to the point of attaining equal recognition or authority in business settings. This is changing slowly and Italians would not be surprised to do business with senior business women from other cultures.
It is considered good manners for Italian men to open doors, carry bags or otherwise act in a chivalrous way towards women. As a woman in business it is best to accept these actions gracefully and then get down to business as usual.
In business settings, the individual with authority rarely has to raise his or her voice. In most cases, however, Italians speak loudly, animatedly, and interruptions are to be expected.
Italian communication styles tend to be eloquent, wordy, demonstrative, and emotional.
Italians tend to be guided by their feelings. Consequently, make an effort to ensure that the Italians you do business with decide that they like and trust you.
Italian businesspeople will often base their decisions on what has worked for others in similar situations-even when the two situations may not be directly related to each other. Consequently, if an idea does not correspond with an individual’s subjective experience or opinion, it is often rejected.
Italians will look at the particulars of each situation rather than seek guidance from a law or policy to solve a problem.
In Italian business culture, most decisions are made in “closed quarters” by various people, not just the highest figure in authority. There are, however, a large proportion of family-owned businesses here; in these organizations, the head of the family usually makes the final decision.
Final decisions can take time and the process from initial contact to implementation can take several months to a year.
Be patient, since rushing or putting pressure on the decision-making process will put you in a less powerful position.
Italians will sometimes make sudden, unexpected demands as a way of unsettling the other side. The use of this strategy does not automatically mean the negotiations will collapse.
The relationships between families, friends, and neighbours are of crucial importance, especially in the south of Italy.
Honour and personal pride are critical in this culture. Consequently, never insult the honour or personal pride of the Italians, their families, their towns, or their friends.
Employees provide what their bosses expect of them, and the preparation of reports and plans can be time-consuming and even complicated. Compiling the information required in order to do what your boss expects from you, or creating consensus among your colleagues in order to accomplish a particular goal, can take a considerable amount of time. All of this occurs in a formal and sometimes very rigid hierarchical structure. Consequently, deadlines and efficiency are usually secondary to considerations such as attention to detail and logic.
Complimenting and rewarding employees publicly are not often done.
The Italians, generally, can be receptive to criticism, as long as it is constructive. Try, however, not to be too blunt.
In Italy, office doors often remain closed, so ensure that you knock before making an entrance and when leaving a room, always close the door behind you.
