In international business, it is inevitable that you will find yourself sitting across from American negotiators at some point. Knowing how Americans tend to operate and how you can leverage their societal and cultural quirks in your favour can help you get the outcomes you want to see.
The USA is a vast country home to many people of all backgrounds. If you have somehow never negotiated with an American so far, you are in for a pleasant surprise. As with any negotiation, we recommend you head in having done your prep, but there are still some things to bear in mind long before you sit down at the negotiating table.
Here are some of the considerations to make when considering how American culture and negotiating styles come together during a deal.
A nation of diversity
The modern United States is home to over 330 million people, with they themselves having ancestry from all over the rest of the world. This creates a nation built on traditions and expectations from many different heritages.
The USA isn't just a populous country; it is also vast geographically. Even a single state is bigger than many European countries; California is roughly 1.7x the size of the UK! This means that two Americans can have a very different outlook on business and life in general. Someone from the Deep South will hold different values than a Midwesterner, and they too will be different from someone born and raised in New England.
Different cultural factors might be at play here, even if the negotiating team is all American. Knowing how to handle some of the variations in behaviour that you see can really help the negotiation process move forward smoothly.
Are there any fair generalisations we can make?
When we talk about generalisations, we want to avoid falling into the world of stereotypes. Our understanding of national negotiating styles is often built on how we perceive people as a whole. Stereotypes can be dangerous and can perpetuate negative beliefs about a group. Generalisations can also be harmful if we refuse to accept the fact that a lot of people won't align with them.
If we take a look at the Lewis Model we examined in our UK negotiation blog, we can see that the USA is also a linear-active country. We know straightaway that British and American cultures are very different, but if both display linear-active behaviours then we know that some similarities can help us build a workable negotiation strategy.
They are likely to be direct, and they will value facts and truth over efforts to be diplomatic. They want to see a full timeline to know how the deal is projected to move forward, and they might use body language to hide their true feelings.
5 tips for negotiating with Americans
While some generalisations need to be made (since, as we have established, America is a diverse place home to many different types of people), good prep can carry you forward. Here are five of our best tips to help you land on your feet in the States.
1. Know the dos and don'ts of conversation
Small talk will likely form part of any meeting, just as it does in the UK. You need to know what topics you can safely bring up, and which ones should be avoided. While Brits are prone to talking about the weather, their cousins across the pond prefer to discuss sports results or current events.
You need to be very careful about the latter topic. Some current US events can be incredibly divisive. Try to keep your discussions free from politics if possible. The other negotiators might have very different social and political opinions from you, and you don't want to tar discussions before they even get started.
2. Work hard, play hard
Americans are likely to demonstrate a very hard negotiation style that pushes towards the best possible outcome for them. They may not be interested in what the other party wants to see or in reaching that all-important win-win situation; they just want to win on their own terms. Reaching an agreement that does benefit everyone around the negotiation table can be more of a feat than some might initially realise.
This can seem like a tough environment to enter, so try to visualise proceedings not as a business deal but as a game. Most Americans follow some competitive sports franchise, and a deep-rooted love of sports is built into communities across the country. Treating a negotiation like a game and playing fast and hard will hopefully appeal to your American counterparts.
3. Separate the people from the task at hand
Playing hard and fast does have its drawbacks. Not only is it a negotiation style that doesn't suit everyone, but it can sometimes result in a breakdown of communication or a growing dislike of other parties. The American you meet in the boardroom might be very different outside of it! Various aspects of our personalities shine when they meet certain circumstances, and spending time with the American team beyond negotiations can help to demonstrate this.
Entertaining and going out to dinner with potential clients is part and parcel of the American negotiation experience. Not only can it help you to humanise and get to know one another, but it is also a great opportunity for you to discuss the deal in a more relaxed setting. Just be careful not to offer gifts or try to "sweeten the deal" as this is one of those cultural differences that might be looked at positively by some nations but viewed as attempted bribery by Americans.
4. Prepare for a direct approach
Americans are not as direct as some cultures, but they do often pride themselves on being frank and open compared. This can often come up in opposition to Brits who tend to be more reserved. When sitting down opposite them, you can expect them to confidently voice their thoughts and opinions.
It can feel a little brash to encounter, especially if you feel like they are stonewalling you or not letting you voice your own opinions in return. This is one of those cultural differences that might just need you to push through and assert yourself. Remember, Americans respond well if you also pursue a result and treat proceedings like a game. International business deals force us to encounter many countries that are very different from those we were raised in. Preparing and knowing how to deal with your opponents is just part of the game.
5. Leave room for collaboration
Though they can seem direct, many Americans still favour a collaborative approach. This style of doing business blends well with other cultures and can help build those crucial connections that lead to a signed contract and a long-lasting partnership.
Many American sectors, especially more modern ones such as tech or startups, favour a flat hierarchy over a traditional top-down one. These are inherently collaborative spaces and allow for open communication and opinion-sharing. Together with a cross-functional team set-up to help ensure all teams are fairly aligned, many Americans are used to a space where they can collaborate to reach a positive outcome. Even if you are left in a position where you need to hold your ground against their demands, ensure you leave a path open for future collaboration.
Meet American negotiators with confidence and skills
Learning a good foundation of negotiation skills and how to prep for any eventuality should set you on the path to success. However, you do need to be aware of any cultural differences that might get in the way of successful negotiations. Americans can seem direct and firm at times, but they value fairness and a good argument when it comes their way. Be prepared to meet them on their level and advocate for yourself as clearly as they do.
Our experts can help you learn the skills you need to find success in both international negotiations and deals at home. Get in touch with us today to find out more about our courses and how our 45+ years of experience can benefit you!
