Contracts and negotiations in a virtual world

Most attempts to compare the effectiveness of virtual meetings with physical meetings are too simplistic. That was the conclusion from IACCM’s executive roundtable in London last week. Participants shared hints and tips on approaches they have observed that contribute to the success of virtual meetings – and may even offer advantages over the physical variety.

‘We tend to see virtual meetings – phone calls, video-conferencing, webcasts – as inferior to physical meetings”, observed one participant. “Perhaps that is because the driver has been largely negative –  a push for cost savings, rather than promotion as a positive and perhaps superior alternative to physical meetings.”

Beyond reduced travel expense, how can virtual be superior? One reason is that they can be more inclusive. It is possible to involve a wider range of people, potentially for just part of the meeting. But another more important reason is the versatility they can offer in both the medium and the combination of methods used. ‘Virtual’ includes instant messaging, e-mail, conference calls, webinars, video calls and video conferencing, such as Telepresence. But it is not a matter of choosing just one approach – a well planned meting may use several.

“When we use any of these mediums for negotiation, we also ensure our team is linked to instant messaging,” commented one participant. “That way we are communicating behind the scenes, sending instructions, planning next moves. Those are things you can never do in a face to face negotiation.”

So if virtual methods sometimes offfer advantages, what are some of the hints and tips to make them successful? One interesting comment came from an executive who observed the need to put all participants on an equal footing. He had observed that many virtual meetings have a physical component – a tendency for those based in one location to gather in a conference room or office, with remote participants then joining by phone. “That puts the remote people at a tremendous disadvantage. The meeting inevitably gravitates to those who are together and the rest feel excluded.” He now requires all participants to use exactly the same medium.

In the world of negotiations, a recent IACCM study revealed that the most admired companies are those which excel at planning. And it has become evident that they also plan the methods they will use for communications and meetings and the points at which they will use them. So deciding the right mix and timing of physical and virtual meetings and communication is very much part of the planning agenda.

The roundtable group also discussed recent research findings from Harvard Business School regarding language issues. The research highlighted the alienation that typically occurs in multi-cultural teams, forced to operate in the company language (typically English). Many members of the team feel unempowered and this can be especially extreme in a virtual conversation. Successful leaders recognize this risk and ensure that all participants have opportunities to contribute. They also open a variety of methods – for example, spoken or written – to accommodate different preferences. “In any meeting, I know what I said, but I don’t know what others heard,” said one participant. “By using several forms of media, I may be able to reduce the chances of misunderstanding – and virtual methods certainly increase the options available to me.”

Another Commercial Director – who heads the UK team within a European multi-national – highlighted the fact that language diasadvantages can work in several directions. Although English is the official working language in his company, the native speakers often find themselves at a disadvantage, because non-natives actually understand each other far better than they understand their US or UK counterparts. “If we want to be effective, we must remember to use terms and speak at a speed where they grasp what we are saying. I often observe team members just trying to get their message across by speaking faster and at higher volume – it doesn’t work.”

These thoughts led the meeting to a discussion about the role of the contract as a means of communication – but I will cover that conversation in my next blog. Meanwhile, please share your thoughts and ideas on how to ensure effective use of virtual communication tools.

– inclusive