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Negotiating in Japan requires a blend of strategic planning, cultural insights, and psychological tactics. Here are five steps to enhance your negotiation skills and boost your results in Japan:
Preparation is vital in any negotiation, but in Japan, it holds even greater significance. I’ve seen foreign sales directors browse through their memos on a one-hour Shinkansen ride to a client meeting and wing their presentations. Needless to say, the results were disastrous.
Neglecting preparation for meetings and client presentations in Japan can have severe repercussions. In Japanese business culture, a lack of preparation is seen as disrespectful. Your counterparts will immediately sense your level of commitment.
Before every meeting, I make it a priority to put myself in the client's shoes. This means understanding their needs, concerns, and goals from their perspective.
This exercise not only involves researching the industry and imagining how the client experiences the current market situation. It goes one level deeper. I use a set of questions that make me consider my counterpart's personal status (tachiba in Japanese), preferences, and career objectives. How would he or she feel, act, and decide?
Pre-alignment (nemawashi) is deeply ingrained in Japanese business culture. It involves aligning expectations and objectives before the formal negotiation to minimize misunderstandings.
I’ve found conducting informal meetings or calls with my main counterparts before the official meeting extremely helpful. This pre-alignment strategy sets the stage for a cooperative atmosphere and productive negotiation.
Master negotiators recommend to listen more than we talk. It's easier said than done. We are so focused on getting our message across and explaining our solution that we don’t get a sense of what the client really thinks and wants.
Ask open-ended questions to uncover deeper insights and engage in active listening. Once the client opens up, this approach will reveal underlying needs, desires and concerns, enabling you to tailor your proposal more effectively.
Anticipate and address potential concerns and objections. Before high-stakes negotiations, I will always brief my clients and brainstorm possible concerns or objections of the Japanese side.
Common objections with foreign companies concern the lack of references in Japan, the level of commitment to the Japanese market, performance guarantees and the way maintenance and service will be handled. Think about these points beforehand and make sure to address them in your presentation to alleviate concerns.
Follow-up demonstrates professionalism and commitment, ensuring clarity and building ongoing trust. After a meeting, make it a priority to deliver on the questions and requests raised during the meeting.
You can also follow up with a summary of the discussion, a roadmap of the agreed next steps, and periodic updates. This consistent follow-up will strengthen your relationship and led to future collaborations.
Throughout the entire negotiation process, be aware that the Japanese will need time to reflect and form a group consensus. Don't expect decisions on the spot. Rather than pushing for immediate answers, prioritize understanding their need for internal consensus.
By providing all necessary information and context upfront, you can empower your Japanese partners to deliberate thoroughly. Your role is to support and guide them in the process, so they can form a consensus and make the best possible decision for themselves.
What specific challenges are you anticipating in your negotiations with Japanese counterparts?
Are you looking to master negotiations and the art of doing business in Japan, check out our new ebook Getting to Yes in Japan. It's filled with insights and strategies that can help you excel in the Japanese market.
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