Building Your China
Negotiating Team
Part 1: Planning
ChinaSolved
Spring 2013
Building Your China
Negotiating Team
Part 1: Planning
ChinaSolved
Spring 2013
Sign up for the ChinaSolved
eNewsletter
(Click Here)
Steps to Building Your
China Negotiating Team
1. Planning
2. Training
3. Managing
Property of ChinaSolved. All Rights
Rese...
Plan for China
• China success won’t fit into your
existing plans.
• You need a new set of Best
Practices.
Property of Chi...
Train For China
• Train up for China.
– Multiple variables.
– Quality, Security
• Front line negotiators (sales, purchasin...
Manage the China Deal Process
Manage the process and your
team.
• Delegate AND control.
• Don’t set your side up to fail.
...
Characteristics of a
China-Ready
Negotiating Machine.
Property of ChinaSolved. All Rights
Reserved. Copyright @2013
8
Characteristics
1. Strategic China Orientation
2. Team approach
3. Two Way Data Flows
Property of ChinaSolved. All Rights
...
China Requires New Strategy
• Don’t try to fit China into your existing
management framework.
– Start with a China goal sy...
China Goal System
• You need to develop a specific set of
goals for your China deal or
negotiation.
–Don’t use cookie-cutt...
China Goal System
• SMART goals
– Specific
– Measurable
– Actionable
– Realistic
– Timely / Time Bound
Property of ChinaSo...
Audit Your Resources
What resources will you allocate to China?
• Manpower (including YOU)
• Funds
• Time
• Bandwidth/Sani...
Goals – Resources =
Negotiation Variables
• The objective of your negotiating is to
bridge the gap between what you want t...
Prepare for the China Marathon,
not a NY-Style Sprint.
• Eyes on the prize – not the finish line.
– Deadlines are dead end...
End of Part 1.
Next Week: It Takes a Team
Property of ChinaSolved. All Rights
Reserved. Copyright @2013
16
Building Your China
Negotiating Team
Part 2: Teamwork
ChinaSolved
Spring 2013
Team Approach
• China will require a matrix approach.
• Purchasing, sales and/or management at
varying levels.
• Support &...
A Matrix Approach
Admin* Finance Tech Legal
High X X
Middle X X X X
Front Line X X
Property of ChinaSolved. All Rights
Res...
China Team Challenges
• Preparation
• Project management
• Information Flows
Property of ChinaSolved. All Rights
Reserved....
Negotiation Prep
• Agenda Setting
– Explicit
– Planned
– Negotiated
• Internally
• Externally
Property of ChinaSolved. All...
5 Internal Prep Questions
1. What do you want from this negotiation in the
short term?
2. What do you want in the longer t...
Set Benchmarks in Advance
• Benchmarks
– Quality
• What objective measurements will you use?
• Who will check?
• When and ...
Two Way Information Flows
• Be very realistic about the flow of information
within your organization.
• Develop ways of ge...
China Negotiating Best Practices
• Multi-level, multi-departmental
teams.
• Send teams with proper authority.
– Monitor & ...
Sign up for the ChinaSolved
newsletters:
Property of ChinaSolved. All Rights
Reserved. Copyright @2013
26
About Andrew Hupert - Author
• 10+ years in China,
– 3 in Taiwan & HK
• Principal at Best Practices China ltd
– Specialist...
Guanxi for the Busy American
• A professional’s guide to
building relationships in
China.
• Written for the Western
negoti...
The Fragile Bridge
• Conflict Management in
Chinese Business .
• Building relationships is
easy – maintaining
them is hard...
Thank You
Property of ChinaSolved. All Rights
Reserved. Copyright @2013
30
Contact
www.ChinaSolved.com
www.ChineseNegotiation.com
Linkedin: ChinaSolved
YouTube Channel:
www.youtube.com/Chinasolved
...
Sign up for the ChinaSolved
eNewsletter
(Click Here)
Property of ChinaSolved. All Rights
Reserved. Copyright @2013
33
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Building an Effective China Negotiating Team

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Negotiation in China is a team activity -- but Americans still favor the "lone hunter" approach to deal making. Developing a team for Chinese negotiation isn't tricky -- it's about planning, training and managing. ChinaSolved shows you how.

Sign up for the ChinaSolved newsletter for more videos, articles and information: http://visitor.r20.constantcontact.com/d.jsp?llr=hswc8jnab&p=oi&m=1113800661575

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  • If you are front line in China, your most important negotiation is with your own bosses. You need to get the power to walk away, control the pace, and find other coutnerparties.
  • De
  • Remember – when you stress out or lose your composure, they win.
  • In the last video we talked about planning and building negotiating teams that do well in China. Now we are looking at the mechanics of how to manage negotiations with a team. Remember – Americans tend to send individuals or small teams to negotiate, and it is often a delegated function. We have salesmen, purchasing managers and administrative supervisors who negotiate face-to-face, and then report back to senior managers. This approach leads to problems in China.
  • Not everyone has to be in every meeting, every time. But Chinese negotiating teams are known for being holistic, integrated and nimble. In other words, they will throw in new variables or change the nature of the deal quickly and without warning. Since they are showing up with every department and level of management represented, they can throw you off guard. You have to be ready with the resources to respond – and the firepower to say “NO”. Remember -- Western negotiators who show up without the authority to step on the brakes or the gas are at a disadvantage that will work against them.
  • Thinkof an agenda as the table of contents of a negotiaton. It includes all of the variables and deal points that are part of your goal. In the US and the West we don’t think about the agenda too much because the institutional and regulatory framework is pretty complete and familiar. In China things are different – there is very little institutional support (at least for your side) and the risk of bad quality, asset theft and pirated Intellectual Property is much, much higher. You have to negotiate your deal agenda twice – once within your own organizaiton, and then with the Chinese side. Make sure that QC and IP protection are on the agenda.
  • If you are having trouble setting your deal agenda, start by asking your various team members these 5 basic questions. Take a good look at number 4 and 5. Define a WIN very carefully, because different departments will have wildly different definitions. And question 5 is probably the most important pre-negotiation discussion you can have. Make sure you uncover all the possible dangers and pitfalls – and then develop some way of dealing with them BEFORE you start talking to a Chinese counterparty.
  • Building an Effective China Negotiating Team

    1. 1. Building Your China Negotiating Team Part 1: Planning ChinaSolved Spring 2013
    2. 2. Building Your China Negotiating Team Part 1: Planning ChinaSolved Spring 2013
    3. 3. Sign up for the ChinaSolved eNewsletter (Click Here)
    4. 4. Steps to Building Your China Negotiating Team 1. Planning 2. Training 3. Managing Property of ChinaSolved. All Rights Reserved. Copyright @2013 4
    5. 5. Plan for China • China success won’t fit into your existing plans. • You need a new set of Best Practices. Property of ChinaSolved. All Rights Reserved. Copyright @2013 5
    6. 6. Train For China • Train up for China. – Multiple variables. – Quality, Security • Front line negotiators (sales, purchasing, admin) need power to build relationships – and to hit the brakes. Property of ChinaSolved. All Rights Reserved. Copyright @2013 6
    7. 7. Manage the China Deal Process Manage the process and your team. • Delegate AND control. • Don’t set your side up to fail. • They need power and limits. Property of ChinaSolved. All Rights Reserved. Copyright @2013 7
    8. 8. Characteristics of a China-Ready Negotiating Machine. Property of ChinaSolved. All Rights Reserved. Copyright @2013 8
    9. 9. Characteristics 1. Strategic China Orientation 2. Team approach 3. Two Way Data Flows Property of ChinaSolved. All Rights Reserved. Copyright @2013 9
    10. 10. China Requires New Strategy • Don’t try to fit China into your existing management framework. – Start with a China goal system – Audit your existing resources and capabilities. – Develop a plan for bridging the gap. Hint: Don’t treat China like “just another” source or market. Property of ChinaSolved. All Rights Reserved. Copyright @2013 10
    11. 11. China Goal System • You need to develop a specific set of goals for your China deal or negotiation. –Don’t use cookie-cutter business plans –Don’t let Chinese sources, partners or staff set your goals. Property of ChinaSolved. All Rights Reserved. Copyright @2013 11
    12. 12. China Goal System • SMART goals – Specific – Measurable – Actionable – Realistic – Timely / Time Bound Property of ChinaSolved. All Rights Reserved. Copyright @2013 12
    13. 13. Audit Your Resources What resources will you allocate to China? • Manpower (including YOU) • Funds • Time • Bandwidth/Sanity Budget for the BUSINESS and the NEGOTIATION. Property of ChinaSolved. All Rights Reserved. Copyright @2013 13
    14. 14. Goals – Resources = Negotiation Variables • The objective of your negotiating is to bridge the gap between what you want to end up with and what you have now is. • Cost is not the only variable. Property of ChinaSolved. All Rights Reserved. Copyright @2013 14
    15. 15. Prepare for the China Marathon, not a NY-Style Sprint. • Eyes on the prize – not the finish line. – Deadlines are dead ends in China. • The Chinese Side will work the clock to pressure front line negotiators into bad agreements. – They know the boss is waiting for the contract. Property of ChinaSolved. All Rights Reserved. Copyright @2013 15
    16. 16. End of Part 1. Next Week: It Takes a Team Property of ChinaSolved. All Rights Reserved. Copyright @2013 16
    17. 17. Building Your China Negotiating Team Part 2: Teamwork ChinaSolved Spring 2013
    18. 18. Team Approach • China will require a matrix approach. • Purchasing, sales and/or management at varying levels. • Support & Admin must be part of the mix from the start. Property of ChinaSolved. All Rights Reserved. Copyright @2013 18
    19. 19. A Matrix Approach Admin* Finance Tech Legal High X X Middle X X X X Front Line X X Property of ChinaSolved. All Rights Reserved. Copyright @2013 * Includes Sales, Purchasing and/or Supervisors, depending on the situation. 19
    20. 20. China Team Challenges • Preparation • Project management • Information Flows Property of ChinaSolved. All Rights Reserved. Copyright @2013 20
    21. 21. Negotiation Prep • Agenda Setting – Explicit – Planned – Negotiated • Internally • Externally Property of ChinaSolved. All Rights Reserved. Copyright @2013 21
    22. 22. 5 Internal Prep Questions 1. What do you want from this negotiation in the short term? 2. What do you want in the longer term? 3. Does everyone (your team and theirs) have the same idea of what “long term” and “short term” means? 4. What does success look like? 5. What can go wrong? Property of ChinaSolved. All Rights Reserved. Copyright @2013 22
    23. 23. Set Benchmarks in Advance • Benchmarks – Quality • What objective measurements will you use? • Who will check? • When and where? • What will happen if quality if unacceptable. – IP Protection • Who owns the China IP? • What will be transferred? • Who, What, When, How? • Why? Because that’s what they really want from you. Property of ChinaSolved. All Rights Reserved. Copyright @2013 23
    24. 24. Two Way Information Flows • Be very realistic about the flow of information within your organization. • Develop ways of getting qualitative as well as quantitative information from the front lines of China negotiation. • This is something managers lie to themselves about at home. – Expensive blunder to make in China. – Stats, sales figures and quantitative data aren’t enough. Property of ChinaSolved. All Rights Reserved. Copyright @2013 24
    25. 25. China Negotiating Best Practices • Multi-level, multi-departmental teams. • Send teams with proper authority. – Monitor & get feedback from front lines. • New rules – one-size-fits-all policies often fail in China. Property of ChinaSolved. All Rights Reserved. Copyright @2013 25
    26. 26. Sign up for the ChinaSolved newsletters: Property of ChinaSolved. All Rights Reserved. Copyright @2013 26
    27. 27. About Andrew Hupert - Author • 10+ years in China, – 3 in Taiwan & HK • Principal at Best Practices China ltd – Specialist in US-China Negotiation – Corporate training, consulting, and project management • Publisher of ChinaSolved.com and ChineseNegotiation.com • Author – Guanxi for the Busy American and The Fragile Bridge Full list of publications and slideshows available on www.AndrewHupert.com Property of ChinaSolved. All Rights Reserved. Copyright @2013 27
    28. 28. Guanxi for the Busy American • A professional’s guide to building relationships in China. • Written for the Western negotiator who needs to transact and execute. • Available on Kindle, iBook and all major e- formats. Property of ChinaSolved. All Rights Reserved. Copyright @2013 28
    29. 29. The Fragile Bridge • Conflict Management in Chinese Business . • Building relationships is easy – maintaining them is hard. Learn to do it right. • Available on Kindle, iBook and all major e- formats. Property of ChinaSolved. All Rights Reserved. Copyright @2013 29
    30. 30. Thank You Property of ChinaSolved. All Rights Reserved. Copyright @2013 30
    31. 31. Contact www.ChinaSolved.com www.ChineseNegotiation.com Linkedin: ChinaSolved YouTube Channel: www.youtube.com/Chinasolved Property of ChinaSolved. All Rights Reserved. Copyright @2013 31
    32. 32. Sign up for the ChinaSolved eNewsletter (Click Here)
    33. 33. Property of ChinaSolved. All Rights Reserved. Copyright @2013 33

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