Contrasting American and Russian

Mindsets and Decisionmaking Paradigms

Americans 1. See morality as a matter of standard laws and rules. 2. Focus more on rules than relationships. 3. A trustworthy person honors his word or contract. 4. There is only one truth or reality, which has been agreed to. 5. Private and business agendas are kept separate from each other. 6. Contracts are readily drawn up. 7. “A deal is a deal.” Signing a contract is closing a deal. 8. Very detailed contracts that attempt to anticipate all possible circumstances, no matter how unlikely. 9. If unexpected circumstances arise one must refer to the contract to determine how to handle a new situation that may arise. 10. Clear, precise and detailed instructions are seen as assuring better compliance. 11. Strive for consistency and uniform procedures. 12. Signal changes publicly. 13. Seek fairness by treating all like cases in the same way. 14. More frequent use of ‘I’ form. 15. Decisions made on the spot by representatives. 16. ‘Build down’ approach in negotiations. Begin by presenting a maximum deal if the other side accepts all the stated conditions. 17. Risk takers. 18. Aggressive attempts to shorten the negotiating time (that are viewed by the other side as efforts to hide something and therefore may be a cause of distrust). 19. Use of titles only when relevant to the competence you bring to the task. 20. Short-term orientation and planning more frequently used. 21. Focus on finding the way to maximize the benefits from the project to both the investor and the host country. 22. Tend to view private investment as a positive good, a force to create wealth, jobs, useful products, and income. 23. Most senior managers are of varying age and gender and have shown proficiency in specific jobs. 24. Decisions are challenged on technical and functional grounds. People assume personal responsibility; direct to the point, purposeful in relating precise, blunt, definite and transparent.

Russians 1. See morality as variable, dependent on loyalties. 2. Focus more on relationships than rules. 3. A trustworthy person in the one who honors changing circumstances. 4. There are several perspectives on reality relative to each participant. 5. Private and business issues interpenetrate. 6. Legal contracts are readily modified. 7. Relationship evolves. Signing a contract is opening a relationship. 8. Prefer a contract in the form of general principles rather than detailed rules. 9. If unexpected circumstances arise, the parties should look, to their relationship, not the contract to solve the problem. 10. Ambiguous and vague instructions are seen as allowing subtle and responsive interpretations. 11. Build informal networks and create private understanding. 12. Pull levers privately. 13. Seek fairness by treating all cases on their special merits. 14. More frequent use of ‘we’ form. 15. Decisions referred back by delegate to organization. 16. ‘Building up’ approach in negotiations. Begin by proposing a minimal deal that can be broadened and increased. 17. Risk adverse. 18. A need to invest time in the negotiating process so that the parties can get to know one another well and determine whether they wish to embark on a long-term relationship. 19. Extensive use of titles, especially when these clarify the status in the organization. 20. Long-term planning more frequently used. 21. See that profits earned by the investor are losses to the host country. 22. Seek to maximize the benefits of foreign investment and minimize the costs through government regulation. 23. Most senior managers are male, middle-aged and qualified by their backgrounds. 24. Decisions are mostly challenged by people with higher authority. Personal responsibility is rare. Indirect, circuitous, seemingly aimless forms of relating evasive, tactful, ambiguous, even opaque.

* Individuals may not fit into either of the mentioned general descriptions.

Dr. Galina Mott

Department of Marketing

University of Northern Colorado.

(970) 351-2810

e-mail: galina.mott@unco.edu.

Dr. Galina Mott is an Adjunct Professor of Marketing at the University of Northern Colorado.

How do American and Russian mindsets contrast? By understanding differences, we can better understand commonalities and the development of positive business relations.