Truth 42. Negotiating with different organizational cultures

In a widely publicized TV ad campaign, a stuffy, bloated Bill Gates look-alike patronizingly chides an extremely cool and relaxed hipster who looks reminiscently like Steve Jobs. The cultures of the two iconic companies—Microsoft and Apple—are about as compatible as oil and water. It’s a case of Mr. Suit meeting Mr. Blue Jeans. Corporate cultures can be so distinctly different that they cause friction between otherwise well-meaning negotiators.

Just as every human has a unique personality, every organization has its own culture—a system of shared values about what is important and beliefs about how things work that shape norms and expectations of how people should behave. According to Bruce Tharp, company cultures vary in terms of two key values: how flexible they are and whether they are internally versus externally focused.³⁶ This creates four possible types:

▪ Compete culture (stability and external focus)—Microsoft is an example of a compete culture. Players in compete cultures are driven by market worth and economics. The negotiators from these cultures conduct careful due diligence and focus on what the market offers. They are highly rational and use economics to make decisions. They behave and think in a self-interested manner, and they assume that others are self-interested as well.

▪ Collaborate culture (flexibility and internal focus)—Some companies treat their employees like family. For example, the Perkins Coie law firm is routinely heralded as one of the best places to work. Partners in the firm treat one another like family and close friends. The firm is highly flexible in terms of adjusting to meet the needs of the employees, and the focus is on excellence.

▪ Create culture (flexibility and external focus)—Apple is an example of a create culture. Sometimes known as adhocracies, create cultures value experimentation and exploration. For example, the company Evernote Software offers its employees unlimited paid vacations because it believes doing so stimulates creativity.

▪ Control culture (stability and internal focus)—Many governments and schools are examples of control cultures. These corporate cultures are based on strict hierarchies, and reporting relationships are clear.

These are some best practices to keep in mind when negotiating between different organizational cultures:

▪ Be aware of how others perceive your organizational culture. In short, be aware of whatever stereotypes might exist about your company or industry. True, they are most likely incorrect or exaggerated, but unfortunately, your negotiation counterparty holds this perception as well.

▪ If the stereotype is negative, don’t try to deny the view that your counterparty has about your industry or company, but instead describe your own approach to the business negotiation. It is very hard to change stereotypes; on the other hand, it is much easier for people to make exceptions to stereotypes. So, be willing to be viewed as the exception. Of course, if the stereotype of your company is positive, then leverage that!

▪ Find out the corporate culture of the person with whom you will negotiate. Does the person come from a control, create, collaborate, or compete culture? If that person is from a compete culture and you are from a collaborate culture, be forewarned!