1 Copyright 2006, 2007, 2008 - Lothar Katz

Negotiating International Business - Greece

This section is an excerpt from the book Negotiating International Business - The Negotiators Reference Guide
to 50 Countries Around the World by Lothar Katz. It has been updated with inputs from readers and others, most
recently in March 2008.
Though the countrys culture is quite homogeneous, Greek businesspeople, especially those among
younger generations, are usually experienced in interacting and doing business with visitors from
other cultures. However, that does not always mean that they are open-minded. When negotiating
business here, realize that people may expect things to be done their way. Greeks tend to be very
proud of their country and may strongly reject any critique of its ways.
Relationships and Respect
Building lasting and trusting personal relationships is critically important to most Greeks, who may
expect to establish strong bonds prior to closing any deals. People in this country usually want to do
business only with those they know and like. Establishing productive business cooperation requires
a long-term perspective and commitment. Consequently, proceed with serious business discussions
only afer your counterparts have become very comfortable with you. This is usually a slow process.
Greeks tend to distrust people who appear unwilling to spend the time or whose motives for rela-
tionship building are unclear.
Business relationships in this country exist between people, not necessarily between companies.
Even when you have won your local business partners friendship and trust, they will not neces-
sarily trust others from your company. That makes it very important to keep company interfaces
unchanged. Changing a key contact may require the relationship building process to start over.
Establishing personal relationships with others in Greece can create powerful networks and is vi-
tal to doing business. Whom you know may determine whether people want to get to know you.
Personal networks rely mostly on strong friendships that also represent dependable mutual obliga-
tions. They may open doors and solve problems that would otherwise be very di cult to master.
Maintaining honest and cordial relations is crucial. Third party introductions can be very helpful as
a starting point to building a trusting relationship with a potential partner.
Saving face is very essential in Greece. Causing embarrassment to another person may cause a loss
of face for all parties involved and can be disastrous for business negotiations. The importance of
diplomatic restraint and tact cannot be overestimated. Keep your cool and never show openly that
you are upset. Avoid open conict, and know that politeness is crucial. While Greeks are usually
very friendly, they are very proud and may be easily oended.
In the Greek business culture, the respect a person enjoys depends primarily on his or her age, rank,
and status. However, personal achievements are now playing a bigger role than they used to. It is
important to treat elderly people with the greatest respect. Admired personal traits include personal
warmth and sociability.
Communication
Greek is the countrys o cial language. Many businesspeople speak at least some English. It may
2 Copyright 2006, 2007, 2008 - Lothar Katz
occasionally be benecial to use an interpreter, though. To avoid oending the other side, ask be-
forehand whether an interpreter should be present at a meeting. When communicating in English,
speak in short, simple sentences and avoid using jargon and slang. It will help people with a limited
command of English if you speak slowly, summarize your key points ofen, and pause frequently to
allow for interpretation.
Since they respect assertiveness, Greeks usually speak forcefully. Conversations may get loud and
passionate. Greeks usually show their emotions openly. However, never lose your temper or appear
impatient. People in the country generally converse in close proximity, standing only two feet or less
apart. Never back away, even if this is much closer than your personal comfort zone allows. Doing
so could be read as a sign that you are uncomfortable around them.
Communication in Greece can be direct and straightforward, especially among friends and close
business partners. Early in the business relationship, people may communicate more indirectly, ap-
pearing vague and non-commital. If in doubt, watch for subtle messages that may signal issues and
concerns. Silence is ofen a way to communicate a negative message.
Gestures and body language can be extensive. It is ofen not a good idea to imitate them, though.
There may be frequent physical contact with others of the same gender. The American OK sign, with
thumb and index nger forming a circle, may be taken as an obscene gesture in Greece. It is also
rude to cross your arms while facing a person. Eye contact should be frequent, almost to the point of
staring. This conveys sincerity and helps build trust. It is best to mask anger with a smile.
The Greek way to signal no is by raising the eyebrows, sometimes together with a backward tilt
of the head. Tilting the head to the side may signal yes. However, many Greeks have adopted the
western way of nodding or shaking the head.
Initial Contacts and Meetings
Before initiating business negotiations in Greece, it is advantageous to identify and engage a local
intermediary. This person will help bridge the cultural and communications gap, allowing you to
conduct business with greater eectiveness.
Negotiations in Greece can be conducted by individuals or teams of negotiators. Changing a team
member may require the relationship building process to start over and should therefore be avoid-
ed. The most senior executive on your side should have the necessary authority and clearly act as
the leader of your team. Similarly, the highest-ranking person on the Greek side will likely atend
and will be the decision maker.
If possible, schedule meetings at least one to two weeks in advance. Since Greeks want to know
whom they will be meeting, provide details on titles, positions, and responsibilities of atendees
ahead of time. They will expect to do business with the most important person in your organiza-
tion. Seting an agenda upfront is usually not necessary. It would likely not be followed anyway.
Although Greeks may not be very punctual, foreign visitors are generally expected to be on time.
Avoid being more than 10 to 15 minutes late, and call ahead if you will be. Displaying anger if you
have to wait reects very poorly on you.
Names are usually given in the order of rst name, family name. Use Mr./Mrs./Miss plus the family
name. If a person has a professional or academic title, use it instead, followed by the family name.
Before calling Greeks by their rst name, wait until they oer it. Greet the most senior person rst,
and then greet everyone else in the room individually. Introductions are accompanied by rm hand-
shakes.
Afer the introductions, oer your business card to everyone present. The process of exchanging
3 Copyright 2006, 2007, 2008 - Lothar Katz
cards is usually quite relaxed. There is no need to have them translated to Greek, but it will be
preferably noted if you do. When presenting your card, smile and keep eye contact, then take a few
moments to look at the card you received. Next, place it on the table in front of you.
Meetings start with small talk, which can be extensive. It is important to be patient and let the other
side set the pace. Initial meetings can be quite formal, but this usually gets more relaxed as the
relationship develops. Some humor is welcome, but always keep it light and friendly. Meetings in
Greece may appear somewhat chaotic, with frequent interruptions and several parallel conversa-
tions. Do not take this personally; it also does not indicate a lack of interest.
The primary purpose of the rst meeting is to become acquainted and build relationships. Litle else
may happen, and you may actually not get to talk about business at all. It is unrealistic to expect
initial meetings to lead to straight decisions.
Presentation materials should be atractively designed, with good and clear visuals. Greeks commu-
nicate primarily orally and visually, so avoid using too much text. Having your handout materials
translated to Greek is not a must, but it helps in geting your messages across.
Negotiation
Atitudes and Styles - Leveraging relationships is an important element when negotiating in Greece.
Greeks ofen engage in debates aimed at reaching a mutually agreeable solution. However, negoti-
ating in the country may also include tough bargaining at many levels. While the buyer is in a supe-
rior position, both sides in a business deal own the responsibility to reach agreement. They expect
long-term commitments from their business partners and will focus mostly on long-term benets.
Although the primary negotiation style is competitive, the Greek nevertheless value long-term rela-
tionships and look for win-win solutions. While proposals should demonstrate the benets to both
negotiating parties, atempts to win competitive advantages should not be taken negatively. You
earn your counterparts respect by maintaining a positive, persistent atitude.
Should a dispute arise at any stage of a negotiation, you might be able to reach resolution or an ac-
ceptable compromise by leveraging personal relationships, assuming that they are strong enough.
Sharing of Information The level of information sharing depends largely on the strength of the
relationship. During initial negotiations, the Greeks ofen play their cards close to the chest.
Pace of Negotiation Expect negotiations to be slow and protracted, and be prepared to make
several trips if necessary to achieve your objectives. Initial exchanges that precede the bargaining
stage of the negotiation may be lengthy. Decisions are usually made between meetings rather than
at the table. Throughout the negotiation, be patient, control your emotions, and accept that delays
occur. Atempts to rush the process are unlikely to produce beter results and may be viewed as of-
fensive.
Greeks generally employ a polychronic work style. They are used to pursuing multiple actions and
goals in parallel. When negotiating, they ofen take a holistic approach and may jump back and
forth between topics rather than addressing them in sequential order. Negotiators from strongly
monochronic cultures, such as Germany, the United Kingdom, or the United States, may nd this
style confusing, irritating, and even annoying. In any case, do not show irritation or anger when
encountering this behavior. Instead, keep track of the bargaining progress at all times, ofen empha-
sizing areas where agreement already exists.
If your counterparts appear to be stalling the negotiation, assess carefully whether their slowing
4 Copyright 2006, 2007, 2008 - Lothar Katz
down the process indicates that they are evaluating alternatives or that they are not interested in
doing business with you. While such behavior could represent atempts to create time pressure in
order to obtain concessions, the slow decision process in the country is far more likely causing the
lack of progress. People from fast-paced cultures tend to underestimate how much time this takes
and ofen make the mistake of trying to speed things up. Again, patience and persistence are vitally
important.
Bargaining Most Greeks enjoy bargaining and haggling. They expect to do a lot of it during a ne-
gotiation. This may include a lot of drama, exaggerations, and bragging. Your counterparts may be
oended if you refuse to play along.
The bargaining exchange of a negotiation can be very extensive. Opening stage and initial oers on
both sides are critically important when negotiating with Greeks. Many believe that the rst person
to quote a price will end up geting the worse part of the deal, and that initial proposals should
never be accepted. Accordingly, either they may wait for you to make an initial oer and then reject
it right away, or they open with an extreme oer that is far from realistic, carefully watching your
response. Know your objectives, and work slowly and persistently towards them. At the same time,
remain professional and keep a positive atitude throughout the exchange.
Prices ofen move 40 percent or more between initial oers and nal agreement. Leave yourself a
lot of room for concessions at dierent stages. However, concessions will never come easily, and
Greeks sometimes nd it di cult to change their position. When conceding yourself, present this
as a decision you made because you like and respect your counterpart. Always ask the other side
to reciprocate. You can use the fact that aspects can be re-visited to your advantage, for instance by
oering further concessions under the condition that the Greek side reciprocate in areas that had
already been agreed upon.
Deceptive techniques are frequently used. This includes tactics such as telling lies and sending fake
non-verbal messages, pretending to be disinterested in the whole deal or in single concessions, mis-
representing an items value, or making false demands and concessions. This includes tactics such
as telling lies and sending fake non-verbal messages, pretending to be disinterested in the whole
deal or in single concessions, misrepresenting an items value, or making false demands and con-
cessions. Do not take such tactics personally and realize that overt atempts to lie at or blu your
counterparts could backre and might damage business relationships. Greeks rarely claim limited
authority since you will usually be dealing directly with the decision maker.
Negotiators in the country may use pressure techniques that include making nal oers or nibbling.
Final oers may come more than once and are rarely nal. Do not use tactics such as applying time
pressure, opening with your best oer, or making decreasing or expiring oers, since your Greek
counterparts could view these as signs that you are not willing to build a long-term relationship.
They may choose to terminate the negotiation. Silence can be an eective way to signal rejection of
a proposal.
Greek negotiators avoid openly aggressive or adversarial techniques but may use more subtle ver-
sions. Extreme openings are frequently employed as a way to start the bargaining process. In addi-
tion, they may make indirect threats and warnings or subtly display anger. Use these tactics with
caution yourself since they may adversely aect the relationship if employed too aggressively. Do
not walk out or threaten to do so as your counterparts will likely take this as a personal insult and
may end all talks.
Emotional negotiation techniques, such as atitudinal bargaining, sending dual messages, atempt-
ing to make you feel guilty, grimacing, or appealing to personal relationships, are frequent and can
be eective. Be cautious not to cause loss of face when employing any of them yourself. Also, know
5 Copyright 2006, 2007, 2008 - Lothar Katz
that Greeks tend to exaggerate situations and can become quite emotional during erce bargaining.
It is best to remain calm. At times, defensive tactics such as blocking or changing the subject, asking
probing or very direct questions, making promises, or keeping an inexible position may be used.
Corruption and bribery are somewhat common in Greeces public and private sectors. However,
people may draw the line dierently, viewing minor payments as rewards for geting a job done
rather than as bribes. Also, keep in mind that there is a ne line between giving gifs and bribing.
What you may consider a bribe, a Greek may view as only a nice gif.
Decision Making Most companies are hierarchical, and people expect to work within clearly es-
tablished lines of authority. Many businesses in Greece are still family-owned. Although the pace of
business is accelerating, decision making can be a slow process. Decision makers are usually senior
executives who consider the best interest of the group or organization. They may consult with oth-
ers and ofen prefer to reach consensus before making the nal call. Subordinates may be reluctant
to accept responsibility. Decision makers also rarely delegate their authority, so it is important to
deal with senior executives.
When making decisions, businesspeople usually consider the specic situation rather than applying
universal principles. Personal feelings and experiences weigh much more strongly than empirical
evidence and other objective facts do. Greeks are ofen uneasy with change and reluctant to take
risks. If you expect them to support a risky decision, you may need to nd ways for them to become
comfortable with it rst, for instance by explaining contingency plans, outlining areas of additional
support, or by oering guarantees and warranties.
Agreements and Contracts
Capturing and exchanging writen understandings afer meetings and at key negotiation stages is
useful since oral statements are not always dependable. It may be helpful to ask your counterparts
to initial these write-ups as a way to document consensus. However, do not mistake them for nal
agreements. Any part of an agreement may still change signicantly before both parties sign the
contract.
Writen contracts are usually kept high-level, capturing only the primary aspects, terms, and condi-
tions of the agreement. Writing up and signing the contract is a formality. Greeks believe that the
primary strength of an agreement lies in the partners commitment rather than in its writen docu-
mentation.
It is advisable to consult a local legal expert before signing a contract. However, do not bring your
atorney to the negotiation table. Greeks may read it as a sign of mistrust if you do.
Signed contracts may not always be honored. This depends to no small degree on the strength of
the continuing relationship between the contract partners. It is strongly advisable to continue stay-
ing in touch and maintaining the trust of your Greek business partner. Business partners usually
expect the other side to remain somewhat exible if conditions change, which may include agreeing
to modify contract terms.
Women in Business
Greece remains a male-dominated society. Women may still be considered inferior and rarely at-
tain important positions. As a visiting businesswoman, emphasize your companys importance and
your role in it. A personal introduction or at least a leter of support from a senior executive within
your company may help a lot.
6
Female business travelers should graciously accept any chivalric gestures they receive. While you
should acknowledge compliments with a brief short smile, it is best to exercise caution and act pro-
fessionally in business and social situations. Displaying condence and some degree of assertive-
ness can be eective, but it is very important not to appear overly bold and aggressive.
Other Important Things to Know
Conservative atire is important when doing business here. Male business visitors should wear dark
suits with neckties on most occasions. First impressions can have a signicant impact on how peo-
ple view you.
Social events do not require strict punctuality. While it is best to arrive at dinners close to the agreed
time, being late to a party by 20 to 30 minutes is perfectly acceptable.
Greeks enjoys discussing politics and are ofen well informed. They may be very outspoken, openly
sharing their opinion. It is best to take a neutral or positive stance in such discussions. The same ap-
plies if the topic of religion comes up in a conversation. Topics to avoid in discussions are Greeces
relationship with Turkey , the tensions over Cyprus , as well as issues around the former Yugoslavian
neighbors to the north. Greeks also dislike being stereotyped the way you may nd in Hollywood
movies. The culture is indeed quite diverse and complex.
Gif giving in business setings is rare. It is best not to bring a gif to an initial meeting in order to
avoid raising suspicions about your motives. Never overly praise something your host owns. He
may feel obliged to give it to you, which could create a very di cult situation.
Copyright 2006, 2007, 2008 - Lothar Katz
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ation principles and tactics frequently referred to in this excerpt.
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