Russian In? - [website] Published: 26th of Jan 2011 by: (c) Staff Training Staff Reporter
It isn’t surprising...
to hear that many business deals are actually signed, based on the people they are formed with and not just the companies behind them, and similarly that many business deals fall through because of poor relations between the two parties.
Unfortunately the business world is not cut-and-dried; there are no definitive rules to ensure that you act in an appropriate manner, and thus one of the main reasons business relationships fall apart is because of individual and cultural differences.
But fear not South Africa! The only thing standing between you and a healthy business relationship with any nationality is the knowledge of how to best approach each situation.
Our recent invitation to join the BRIC group of countries, will see some increased interaction between South Africa and Russia. So let's look at ways that our businesses can adapt to Russian trade conditions, etiquette and protocol.
So where should we pay some attention?
Well, the first thing to take note of is your guest’s name. In Russia people are generally given three names, a first name, middle name (father’s name ending in ‘–vich’ or ‘–ovich’ for a male and ‘–avna’ or ‘–ovna’ for a female), and then their family or surname.
In formal situations it is considered proper to use all three names, while friends and close acquaintances may refer to each other using their first and second names. Family and close friends call each other by their first names only.
Like Brazil, (two weeks) the Russians prefer a fair deal of notice before holding meetings, opting to avoid unannounced business calls wherever possible.
Unlike the Brazilians, however, the Russians do not need to have formed a relationship with you before entering into negotiations, and the actual business side of the dealings are far more cut-throat , with negotiatiations continued until you make concessions and also time used against you, to disrupt your deadlines.
While the Russians tend to be more formal than a lot of other countries, it is not uncommon for meetings to be cancelled at short notice or for negotiators to storm out of meetings with little warning.
There seems to be a fine line between business and socialising in the Russian culture as you are expected to be smartly presented, punctual and completely clued up on the technical aspects of the meeting, but at the same time should expect a long period of socialising prior to its commencement, off-topic interruptions during the meeting and even last minute cancellations.
So be warned, the Russian negotiation method will certainly unsettle a few South Africans and in summary it would be wise to be fully prepared for any evenutality and also to remain more formal until you are comfortable with your guest/host, and of course we suggest that you always follow his/her lead.