IndiaThink

Top 5 Mistakes Executives Make Preparing for Initial Business Negotiation inside India

1. )Assume business negotiations will take place at appointed time.

• Any meeting scheduled in India will, most likely, be delayed. You many have to wait, and wait, and wait till very late hours in the evening to have the live conversation you believed was secured when you left the states. Be patient. Be awake. Be there. Don’t be surprised if the meeting happens at 2am. This is not an affront; rather they will be extremely pleased you have agreed to stay available while they confront the daily madness of a country that has no sense of time.

2.)Assume Yes means Yes in the western context.

• All executives need to be aware of how the “Indian Yes” it will confront you at every turn during your trip to India. From your hotel waitress when they assure you they have Coke and they bring you Pepsi to the person you are asking to agree to your contract terms. Yes means little in India. You should view it as a casual comment, rather a affirmation that someone heard what you said, and they are letting you know that the information was received. The desire to say yes is rooted in India’s culture and as a rule they generally feel uncomfortable contradicting another person. If they perceive bias or a particular preferred response, they will provide it. Walk carefully through your negotiation. People are saying yes because they are agreeing to your terms or because they are being courteous. Kind. Polite. Confirm all yes answers with a very detailed pattern of questions to affirm that all tenants of agreements are actually agreed upon.  REMEMBER:  India’s yes may look like a no in the physical sense of their head nod.  Their nod is closer to a roll (the Mumbai Roll it is often called).  Be aware of the verbal and physical queue of the conversation.

3.) Assume a meeting will consist of an office meeting and last for one hour.  And then you will leave.

• Meetings will rarely be on time(repetition here is purposeful.  a statement to the impact of time on your negotiation attempts). Build a schedule around late starts and late endings. Unexpected dinners. Invitations to things you never imagined but MUST accept to close the deal such as setting of completely dangerous fireworks outside the building to celebrate the new year. Now would be a good time to discuss the family aspects of India’s culture. Open doors are a rule. You must accept invites to whatever social gatherings are presented. Don’t refuse invitations based on your western notions. Your future business partner may invite you to his daughters wedding and you should plan to spend the next few days sitting, eating and enjoying the Indian culture.

4.) Assume India is joking when they mention auspicious days to meet.

• Red flags should be raised when a future business partner mentions that the day you have selected to meet is not auspicious to meet for business relationships. This is a serious comment and should be accepted in a polite manner, immediately offering a different time to meet. India has many complicated calendars, which could never be covered in this simple blog post, that dictate bad days for business, fruitful days for marriage and everything in between. Be flexible and your host will be pleased with your advanced cultural knowledge.

5.) Assume negotiation tactics centered around time will make any impact with the India side.

• A lot of sales tactics in the US are based on quarters---making the “number” for the quarter. These ideas, while very relevant for business around the world, will not work well in India. Time is not “money” in India. Rather it is an ever evolving item unfolding around them. There is time to get things done right. There is little sense of hurry in the same sense of US standards. Do not expect much reaction when attempting to negotiate decreased contracts around time.

And one more for a bonus:
6.)Assume timelines set for implementation of relationship will come to fruition.

• Congratulations! You have successfully engaged in an India based business engagement. Now is the time to set expectations on when the engagement will kick-off. Be very clear on what your needs are, when they need to be met, and expect that these objectives will not be met. What does this mean to you? Set objectives that are more than you need. Push your must have dates forward and be pleased if they are met initially. Your relationship with India is beginning, be patient and allow some time to teach the team what you need and how they can get there.

Recipe for an International Project Schedule

Step 1: Get an Idea
Step 2: Decide to Outsource the software development
Step 3: Create a schedule to make the budget people happy
Step 4: Wait for the product to launch on time.

Sometimes things work like this but most international projects don't result without care and feeding  through schedule awareness.  Schedule awareness should be one of the biggest priorities of any international program/project manager.  I use both program and project here because I believe a program manager should work above two project managers: one residing in India and one in the buying country.

I spoke to a VP of Products from a large software company last week and this is exactly the method that WORKS for her teams.  Each week 2 project managers and 1 program manager get on a video conference call using all of the tools you want in your pocket for managing international relationships such as white boarding capabilities, voice and video streams and chat room forums. 

The meeting begins with the schedule as it is known from the last meeting and each milestone of the project is discussed at length.  I use at length here in a sarcastic tone but with emphasis because the point is NOT to ask “is it done” rather there should be a conversation that elicits details from the Indian team.  Why?  Please read more about the Indian "Yes." In short, Indians are uncomfortable with confrontations and tend to prefer the answer "yes" rather than offending the person in authority who has put forth the question. 

As each step in the project is discussed, the program manager is adjusting the schedule in real time demonstrating that “it will be completed on time” is not reality if say step 17 is not completed by next week Tuesday.  The Indian team sees the clear picture and a discussion is enhanced by the “facts” being presented. 

This is a great methodology that everyone should steal.  It avoids some of the main obstacles in a Western/Indian relationship.  Language barriers are avoided with the use of video and conference call tools—Indians can write their responses.  The Indian "Yes" is not an issue because there is a factual discussion around the impact of the date slip in relation to the desired completion date--the program manager is adjusting the overall schedule live using the video conference tools so everyone can see plainly when the project will be completed with the new dates. These tactile pieces leave little room to mollify the overall objective of on time completion, avoiding the unfounded confidence of “it will get done."  Bravo!

Educating Americans on Indian Culture

Hurray!

“After years of hardselling India and educating themselves about the cultural mores of foreign clients, the country’s IT and BPO companies have begun to sensitise these customers about business etiquette, behavioural patterns and cultural sensitivities of Indians.”

This is something I have not yet talked about here: “One issue that often crops up is that of personal space, and ways to deal with personal enquiries." Personal space in India is a foreign concept; forgive the pun. In line at a ticket counter at the airport I was suddenly accosted by three--that would be THREE men who jumped in front of me in line. Thing is--they didn't think I was in line. The space I had allocated between myself and the person in front of me was so "large" in their minds that they assumed I was just standing there.

Time orientation is also mentioned in this article. The author explains “Clients are at times asked to confirm a meeting, even after it is fixed.” Great tip—cause the chances of it changing, happening on another day, or just plain being off the radar of the Indian group are very high. Time is not “wasted” in India as it is in the US. Instead, it is an ever-flowing phenomenon. Triple checking schedules and getting names attached to times are mission critical when doing business in country. I learned the hard way; after being left at my hotel, when no car arrived to escort me, by one BPO whose contact had completely forgotten that I was to train over 500 employees that evening.

“Companies are even known to tell customers that Indians are generally too polite to say an outright no, and hence body language can be read to gauge a negative attitude.” Great tip, but the author, who is Indian himself forgets to remind us that the body language for “yes” in India looks a LOT like NO in the US. Yes is a motion of shaking the head left and right with a slight twist around. When I talk to folks about this I like to ask them to try this move. Try to say Yes and shake your head NO. Its hard, a strong message to you that this physical action has formed a steel chain link in your brain to Yes/No.