4. Business practice in the usa

So, to do business with Americans it’s a case of: “chest out, shoulders back, head up and stand tall”. That means: be proud of who you are and what you do; think positive and optimistically; say what you mean plainly and clearly.

Never underestimate the speed at which business can be done in the United States. Purchasing decisions are often accomplished in one visit. Be aware that because the United States is the most litigious society on earth, corporations are extremely familiar with employment, health and safety, copyright, and every other type of law. There are lawyers who specialize in every industry and segment of society, from corporate tax attorneys to "ambulance chasers" (personal injury lawyers).

In the United States, differences in social and economic classes exist, but are not emphasized. Because equality is highly valued in the United States, formal situations that emphasize class differences are avoided. Social events are usually informal and relaxed. The Boss has authority but should not abuse it. As much as possible, the Boss should just be one of the workers. For this reason American executives are usually casual and informal with their employees. Because it is believed that good social relationships build a good work environment, bosses often throw parties to build a sense of unity among the employees and to strengthen employee identity with company.

It is important to remember that people in the United States write the month first, then the day, then the year; e.g., December 3, 2010, is written 12/3/10. This is very different from many Europeans and South Americans, who write the day first, then the month, then the year (e.g., December 3, 2010, is written 3.12.10 or 3/12/10).

The standard vacation policy is two weeks per year, in addition to some official holidays. The designated National Holiday is July 4. Punctuality is regarded as crucial in the USA, because time is equal to money. Start and complete tasks quickly and respond to emails and voicemail messages promptly – certainly within 24 hours. Office hours in the USA are from around 8am-5pm, although this varies according to the industry you’re dealing with. Eating lunch at the desk is a common practice.

Meetings. Meetings in America are for making decisions, rather than for gathering views or simply sounding out people. The pace is brisk – ‘Time is money’ – and you should be open about your aims from the start. People are not always well prepared for meetings, and papers are not always read beforehand, but this won’t stop them from commenting on your proposals. The seating is usually informal, and the discussion will follow the agenda.

As the Americans tend to speak rather loudly a visiting person should project his or her voice confidently, address all the people in a meeting or group instead of mumbling to the chairperson, and sound positive about what he or she is proposing. There should always the focus on the bottom line – American business is very much systems-oriented, and always wants to see how much money can be made, and when. You will often hear the phrase, “Are you hitting your numbers?” – that means “are you achieving budget?” The numbers are sacred in the USA, and those who don’t hit them might experience a rapid farewell – still with that confident eye contact and the use of your first name as you are given that final handshake. Allow for a moderate attention span of 30-45 minutes in a presentation, and build in plenty of time for debate. Americans appreciate an informal style and humour. Relevance is very important – use simple, direct expressions, conveyed quickly with short pauses. If your pitch is going down well, expect categorical responses: ‘Absolutely! ’Definitely!’, ‘Fantastic!’, all of which reflect their can-do, achievement-focused attitude. Although Americans can often seem very direct, to the point of appearing rude, remember that their use of language is just different to that of British English. When an American says, ‘Pass that file!’ it’s just the way of saying, ‘Could I trouble you to just pass me that file, please?’ They’re not being discourteous. In the United States people are rarely silent in conversation. Silence is considered to be a negative response to an offer.

Negotiating. In negotiations, points are made by the accumulation of objective facts. These are sometimes biased by faith in the ideologies of democracy, capitalism, and consumerism, but seldom by the subjective feelings of the participants.

The negotiation process can be divided into four phases: 1) building a good relationship; 2) talking about the business deal; 3) persuasion, bargaining, and making concessions; and 4) making a final agreement. In the United States, the first two phases are not emphasized, because personal relationships do not play a large role in business life and because making a quick deal is important. The negotiation process soon moves to the last two phases as bargaining and making a final agreement are the focus of negotiations. Concessions are made during most of the negotiation process. At the beginning, while the two parties are talking about the proposed deal, small concessions are given to show cooperation. As the two parties continue to talk about each issue of business, they bargain and make concessions. The bargaining continues issue by issue until the final agreement is signed. Each concession is met with a concession from the other party. In this way, the two parties treat each other as equals and demonstrate a cooperative attitude and a commitment to the negotiations. In the United States, sending a person with great technical competence and knowledge to negotiate is most important. It shows seriousness about negotiations because an employee who is ready to answer any product questions is being sent. Power and authority are important but are more the result of your talent and work record than of your age or seniority in the company. The sex of the negotiator is not important since many women occupy professional and managerial positions. North Americans are accustomed to sending only one person. Sometimes this is called “John Wayne approach.” This means that the individual thinks he or she can handle the negotiation on his or her own; it reflects the strong individualism found among North Americans.

Argument and debate are considered constructive and are highly valued. A tough negotiating style is often used, which can appear rude to non-Americans. Americans are willing to express disagreement frankly – ‘You must be kidding!’ – but it’s part of what can be a rough atmosphere. Show humour, say what you think (even in front of seniors), and be ready to forget everything and start again if you lose the debate. Try not to appear old-fashioned or slow, or get into too much detail. Concessions may be agreed when time is running out, whereas in other cultures there would be a break for reflection and a subsequent meeting to try and reach a conclusion. Equally, decisions may initially be made on principles, with everyone happy to settle the details later.

Executives should keep up to date with new electronic gadgets and means of communications in the United States. The use of cell phones, and associated devices are common in business meetings. Taking calls while others are in the room can be highly irritating to international visitors—but be aware that it is common practice.

Many Americans pride themselves with being consistent, so they will likely keep their commitments, at least if they are sufficiently documented. While you should not consider interim agreements final, avoid the impression that you are not willing to hold up your commitments. Nevertheless, only a contract signed by both parties constitutes a binding agreement. Negotiators sometimes request to document the progress of a negotiation by both parties signing a Letter of Intent (LOI) or Memorandum of Understanding (MOU). While much weaker than signed contracts, these documents may have legal implications. Contracts are almost always dependable, and strict adherence to the agreed terms and conditions is expected. American companies may prefer to resolve disputes in court, which can become very costly. It is highly advisable to fulfill your contractual obligations.

The "bottom line" (financial issues), new technology, and short-term rewards are the normal focus in negotiations. U.S. executives begin talking about business after a very brief exchange of small talk, whether in the office, at a restaurant, or even at home. The standard U.S. conversation starter is "What do you do?"—meaning "What kind of work do you do, and for whom?" This is not considered at all rude or boring. Actually, to many U.S. citizens, you are what you do.