Negotiating with the Japanese.

NEGOTIATING WITH THE JAPANESE When Japanese hardware companies

began asking about his company's OEM and licensing policies, Silicon Beach Software president Charlie Jackson decided it was time to learn more about the Japanese style of doing business. He asked Japanese friends for tips, collected books and tapes, and--perhaps most important--carefully observed the negotiating style of the Japanese executives he was meeting.

To his surprise, Jackson found much to admire. "They'll tell you, 'Things won't happen fast,' and that's been true. But I've also found that the people we meet with always come prepared. They've done their homework, they know what their goals are. That's refreshing."

Jackson says he's learned several rules for working with Japanese negotiators:

* Pay attention to etiquette. Showing sensitivity to Japanese social rituals is a good way for Americans to demonstrate sincerity, Jackson notes. "For first meetings, you should bring little gifts--engraved pens and company shirts are popular--for everyone involved." (Giving your own software isn't a good gift, however, because it's probably incompatible with Japanese PCs.) Meals are another important ritual. Jackson says. "Never turn down an invitation to go out: That's when the Japanese actually accomplish a lot of business."

* Deal from the top. "Always bring people of rank to major negotiations--never product managers," says Jackson. Often, top Japanese executives show up at meetings just to show how much the deal matters. "They may not say very much, but it's important that they're present."

* Leave the lawyers home. Involving lawyers in a business deal sends a very negative message to Japanese negotiators, Jackson says. "The Japanese expect that you come to an agreement and then get the paperwork done afterward."

* Avoid confrontation. "Aggressive American sales types really have a problem negotiating with the Japanese," Jackson says. "It's embarrassing for the Japanese to be put on the spot, or to be contradicted directly." If discussions really reach an impasse, he adds, it may help to bring in an intermediary who can convey messages that Japanese executives wouldn't express directly.

* Be patient. "You'll always have more meetings than you expect," Jackson says. Decisions are made by consensus, he notes, "so you may find yourself covering the same ground over and over again with new people."

* Build relationships. OFten, Japanese negotiators use protracted discussions as a way of deciding whether to establish a long-term relationship, Jackson says. "In Japanese culture, once you've established that relationship, you don't jump ship. It may take longer to work out the first deal, but then you can be reasonably sure a competitor won't come in and take things away from you."

Charlie Jackson, president, Silicon Beach Software, Box 261430, San Diego, Calif. 619/695-6956.