Project Issues in Asia (3 of 3)

Negotiation

East Asians are more tolerant of ambiguity; sometimes even prefer to leave an issue unresolved in negotiations. They are also tough bargainers. Frontline negotiations are characterized by:

(1) it is usually a long process;

(2) it takes patience and skills to reconcile two languages into a contract;

(3) the concern about face. As East Asians are concerned about face, the principle-based negotiation strategy trying to achieve win-win for both parties may not always work, as face introduces an emotional factor and irrationality into the negotiation.

Negotiation in East Asia is not just limited to frontline formal settings. Relationship buildup through informal sessions such as karaoke, golf and dinner is of equal importance to the outcome of negotiations. Offline lobbying sometimes can get a negotiation out of an impasse.

Other Potential Issues

Payment Part of business culture in certain East Asian countries is to postpone payment to vendors. In Japan and Korea, there is no problem with payment. When a payment is due, it will be paid. In the Greater China region, however, this is a major headache for project managers. After a project has been completed, it may take a long time to receive all the due payments. A project manager may still need to work with the customer on payment issue even though the project has been officially closed.

Etiquette Although culture has many layers, the outermost layer, etiquette, can create a good or bad first impression. One has to carefully observe all etiquette on her first visit to a new city or country, to avoid creating a poor impression among the local stakeholders. For example, a Hong Kong project manager visiting Japan would try not to speak too loudly in public location such as restaurants or trains, and has to avoid using mobile phone in those places. On the other hand, a Japanese or Korean manager visiting Singapore need to be aware that it is a much less smoker-friendly country than their home country.

To be continued...

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