Latest / Match B2B Insights / When Chutzpah Meets Silence: Negotiating Abroad for Israeli CEOs
Transcript
- 0:00Music.
- 0:26Hey everyone, welcome back to Small Company Big Brand. I'm Brenda,
- 0:31joined as always by Benny Fluman.
- 0:34Last time, we showed how small Israeli companies can make a splash globally
- 0:39without huge budgets or a marketing department.
- 0:42But today, we're zooming in on something even more make or break for international success.
- 0:48Negotiation. And why it's a whole new ballgame outside Israel.
- 0:53Benny, you and I both know Israeli CEOs are pros at working deals.
- 0:59But what happens when you try Tel Aviv-style negotiation in Tokyo or, say, Berlin?
- 1:05Oh, Brenda, if only it were just about language, right?
- 1:09The signals, the timing, even what's not being said. Everything has different rules out there.
- 1:15I mean, PwC found a full quarter of international joint ventures just blow up
- 1:21because of cultural mismatches.
- 1:22And Harvard's research? Top 10 negotiation failures?
- 1:27Nearly all culture-driven.
- 1:29Let me tell you, once I treated a Japanese-style silence like an awkward pause,
- 1:34tried to fill it, and it basically screamed disrespect.
- 1:39Cost the company months. So let's give listeners a real cautionary tale.
- 1:45What's the price if an Israeli CEO ignores all those signals and treats,
- 1:50say, a Tokyo deal like a Thursday in Herzliya?
- 1:54You can thank a multi-million dollar deal before you even finish your coffee.
- 1:58I remember this one Israeli startup.
- 2:01They came into a Japanese boardroom.
- 2:03Started with high energy, quick jokes, rapid-fire slides.
- 2:07The Japanese execs went quiet.
- 2:10Total silence, I kid you not.
- 2:14Our guys panicked. Filled every gap with more talking, interrupting each other.
- 2:18After that, deal over. They thought the Japanese were saying yes with their silence. But no.
- 2:25Silence meant, you lost us at hello.
- 2:29That brings us right into the heart of the Israeli style.
- 2:33Direct, improvisational, fast. Honestly, it's kind of legendary.
- 2:39So, Benny, what's your take on why those traits help Israelis stand out but
- 2:44also stir the pot? Okay, let's be real.
- 2:47Israelis are famous for chutzpah. Speed, talking straight, cutting through the nonsense.
- 2:53There's a reason Silicon Valley loves it. Remember the Ways deal?
- 2:57They used pure data and logic, showed the full picture to Google.
- 3:01$1.3 billion later, case closed.
- 3:05But, ah, and here comes the problem. Countries like Germany,
- 3:10they see our impatience as reckless.
- 3:13I learned this the hard way in Munich. Made a joke about taking shortcuts to seal a deal.
- 3:19Germans, they don't do shortcuts. My joke went over like, what do you call it?
- 3:25Lead balloon. You know, it cuts both ways.
- 3:29Israelis' honesty gets respect in the U.S. when it's about results, speed, contracts.
- 3:35But then, take Strauss's hummus in America. Tried to turn a special occasion
- 3:40food into an everyday staple overnight.
- 3:43Didn't work because they didn't read the daily culture. So sometimes confidence
- 3:48looks like, I'll say it, overconfidence or even arrogance outside Israel.
- 3:53That's the paradox of Israeli style.
- 3:55What's gold at home can feel like chaos abroad.
- 3:59The best move? Learn when to dial it up, when to slow down, and just listen.
- 4:05Sometimes, sending your best get-it-done guy to Tokyo is not the answer.
- 4:10Trust me, I have the scars to prove it. Let's zoom way out for a minute.
- 4:15How does culture actually make or break these deals?
- 4:19We've got Japanese patience and silence, German process, the French loving their
- 4:25long lunches, Americans all about return on investment, and then African markets
- 4:31where community trust runs the show.
- 4:33So different, right? the Japanese, they can go minutes with no talking.
- 4:36It's part of the process.
- 4:38Germans, super structured. Every meeting has an agenda, and God help you if you go off script.
- 4:44France, they'll ignore the numbers until they like you personally.
- 4:48America, you'd better have the ROI slide ready by the 10-minute mark or your toast.
- 4:53Africa, they want to know you're invested in their community before any business
- 4:57talk happens. And it's not just about being polite.
- 5:00It's literally money on the line. There was an Israeli startup.
- 5:05They lost a $20 million Japanese deal because they just wouldn't respect those pauses.
- 5:11But then, another Israeli firm cracks it, takes a year building up trust.
- 5:16Yes to the etiquette, yes to the hierarchy, and boom, the deal's done.
- 5:22So Benny, for founders listening, what are those little warning signs you look
- 5:27for that maybe you're about to cross an invisible cultural line?
- 5:30If your counterpart starts going silent, asks to circle back again and again,
- 5:36or doesn't invite you for a meal, you're probably in trouble.
- 5:40Watch subtle stuff. Who speaks first? Who keeps their eyes down?
- 5:45Little things you'd miss if you're blinded by your own intensity.
- 5:49Don't assume yes looks or sounds like you're yet. Here's where models can help.
- 5:54Benny, you know Hofstede's dimensions. Power distance, uncertainty avoidance,
- 6:00individualism, and so on.
- 6:02Why do you think these matter so much for Israeli companies?
- 6:06Because they show why what works here, bombs over there.
- 6:10Israelis have flat hierarchies. So we march right up to execs in Israel.
- 6:14No problem. But in India or Japan, skip the seniority and you're done.
- 6:20We'll take uncertainty avoidance.
- 6:22Germans want backup for everything.
- 6:24Agenda, backup slides, even a plan G and communication style.
- 6:30Edward holds high and low context, right?
- 6:32Israelis and Americans, we say what's on our minds.
- 6:36Clarity over politeness. But in Japan or China, most of the conversation happens
- 6:42between the lines, in the silence, or even after you leave the room.
- 6:46So let's do a quick cheat sheet, Benny.
- 6:49What's your go-to for Israeli founders heading into, say, France or India?
- 6:54France? Talk logic. Be ready for some debate. But do not skip those long lunches.
- 7:00India? Build a relationship with a big boss. But don't ignore the lieutenants. Lots of hierarchy.
- 7:07Lots of emotions. And yes, almost always means maybe.
- 7:12Let's see. Let's talk about the Harvard model, getting to yes.
- 7:17Focusing on interests, not hard positions, is global, but it plays out differently everywhere.
- 7:24In France, you get to interests over wine and cheese. In China,
- 7:29it's long-term over many visits.
- 7:32Exactly. Israelis like to get down to brass tacks. But some cultures only show
- 7:37their hand when the rapport is airtight.
- 7:40There's a classic French example. Israeli execs wanted to dazzle with numbers.
- 7:45But after a three-hour lunch about nothing but families, the French partners
- 7:49suddenly shared what they actually wanted.
- 7:51Deal done. No slides required. And Brenda, what would you do if your counterpart
- 7:57just kept nodding, saying nothing?
- 7:59Is that a yes or a very polite no? Oh wow, in Japan or China,
- 8:05I'd be sweating if someone just smiled and nodded but didn't ask questions.
- 8:10It's almost never a yes. You have to listen for what they're not saying, not just the words.
- 8:16Which is, honestly, so different from how Israelis operate at home.
- 8:20Preparation is the unsung hero, right?
- 8:23Israelis ace the technical stuff. KPIs, ROI models, contracts.
- 8:29The problem is, cultural prep gets skipped. If you miss the unwritten rules,
- 8:35you can lose before the first handshake.
- 8:37Benny, you've got horror stories, I'm sure. Oh, plenty.
- 8:42Miss one Agela detail at a German meeting? Forget it.
- 8:46You might as well turn around and fly home. In Japan, if you can't handle dead
- 8:51air, they'll think you're undisciplined.
- 8:54I get it. We all want to save time.
- 8:57But skipping cultural homework is like going to a wedding and forgetting the
- 9:01gift. But for small companies, double prep sounds overwhelming.
- 9:05Like, let's be serious, most founders don't have time, money, or a spare team.
- 9:11What's the absolutely minimum you'd say every CEO has to do?
- 9:16So, bare minimum, one, map out who the real decision makers are.
- 9:22Two, learn three big no-nos in your target culture, like never pitch the junior
- 9:28person in France or never rush the pleasantries in China.
- 9:32And always, always have your follow-up plan in writing.
- 9:36Case studies say it all. Let's pick apart a few. Japan.
- 9:40One Israeli company was direct. Deal dead. The other respected the process.
- 9:46Stayed patient, landed the contract. Same in France.
- 9:50Numbers first flopped. Relationship first closed.
- 9:53In the U.S., an Israeli fintech missed the ROI slide and lost millions.
- 9:59Their competitor nailed it and raised $7 million.
- 10:03Benny, what's the real lesson in these battles? Everyone likes to brag about
- 10:08wins, Especially in Israel.
- 10:10But honestly, the best lessons hide in prideful failures.
- 10:15We're passionate, but sometimes deaf to what the other side really values.
- 10:20I've banged the table thinking it showed strength, but it just freaked out the Germans.
- 10:24The losses sting more, but they teach you way faster. Let's get really practical.
- 10:30What are the common traps for Israelis working globally? What are the common
- 10:33traps for Israelis working globally?
- 10:34Over-directness can be read as arrogance, right? What else?
- 10:39Absolutely. Pitching to the wrong person? Huge in France and China.
- 10:43No written follow-up? Deals vanish.
- 10:46Not reading hierarchy means, oops, you spent a year on the wrong champion.
- 10:51McKinsey found that adapt-or-die approach means a 30% to 40% higher chance of success.
- 10:58If you don't, it collapses.
- 11:01Fast. So let's be brutal here. What are the taboos that kill Israeli deals abroad?
- 11:06Taboo number one, acting like everyone is an Israeli.
- 11:11Number two, thinking you can wing it with charm and drive.
- 11:16Number three, undervaluing written contracts, especially in Germany or the US. The classic don't.
- 11:24Don't skip the small talk in France. Don't touch the business card in Japan
- 11:28until you've really looked at it. Don't run roughshod over hiring. hierarchy.
- 11:32Anywhere. All right, CEOs tuning in, here's the playbook.
- 11:36Set agendas, map decision makers, prep your BATNA, and engage local advisors every time.
- 11:44Benny, you actually use a dashboard for deals, right?
- 11:47Walk us through it. Yeah, and it's not fancy. I'm old school.
- 11:52Five simple columns. Culture steps, what matters wherever I'm going Key players,
- 11:59Interests, theirs and ours Risks and next steps Keeps your ego in check and
- 12:05saves your skin when things get weird.
- 12:08Plus, I carve out time for a written debrief after every deal.
- 12:11Not just for me, but for the team.
- 12:14That way, next time, we're sharpening the sword, not swinging it blind.
- 12:18And don't forget, Harvard's Getting to Yes, Hofstede, Aaron Meyer,
- 12:24these aren't just for workshops.
- 12:26Use them every trip, every meeting.
- 12:29Never be too small to act big with your toolkit.
- 12:32So, to wrap up, Israeli agility and chutzpah are real weapons.
- 12:37But the secret is mixing them with humility, trust, and respect.
- 12:42Agility means you can outmaneuver big firms. But if you push too hard,
- 12:47disrespect signals. You'll lose the edge.
- 12:50Benny, what's your 60-second pitch to a founder who's scared of losing their
- 12:54Israeli DNA if they adapt too much abroad?
- 12:57You don't lose your edge by respecting others. You sharpen it.
- 13:02True, you might slow down, bite your tongue, or learn a few rituals you think are silly.
- 13:07But trust me, you'll win more, lose less, and keep what makes you, well, Israeli.
- 13:13The point isn't to become American or Japanese or French.
- 13:17It's to be the best Israeli version of yourself. With enough global savvy,
- 13:21so they invite you back, again and again.
- 13:25That's it for today's Deep Dive. If you're aiming to negotiate abroad,
- 13:30prepare, adapt, listen, and most importantly, bring your why to every table
- 13:36as we discussed last episode.
- 13:38Thanks, Benny, as always, for your stories and practical tips.
- 13:43We'll be back with more hands-on strategies for your global playbook.
- 13:47Benny, great as always. See you soon. Thank you, Brenda.
- 13:52Always a pleasure. And to everyone out there, go win those global deals,
- 13:57but don't forget to enjoy the ride.
- 14:00Bye, Brenda. Bye, Benny. Thanks, everyone, for tuning in. See you next time.
- 14:05Music.