For the globe-trotting international business person doing business in a foreign country offers certain intercultural challenges. How should one shake hands? How do I communicate effectively? What are the differences in negotiation styles? Understanding a country's business culture, protocol and etiquette is important in achieving success abroad.
This guide to doing business in Estonia offers some introductory points to some of the above mentioned areas such as business culture and etiquette. It is not intended to summarise all 'doing business tips' nor meant to stereotype. Rather, it highlights some important key areas for consideration when doing business in Estonia such as how to meet and greet, communicate and conduct business meetings.
Meeting & Greeting:
When doing business in Estonia you will note that greetings are formal and rather reserved. There are certain protocols that should be observed such as men initiating greetings with women and the younger with the older.
A good firm handshake accompanied with direct eye contact is the norm. The most common greeting is "tere" (hello). Estonians as a people, especially in business, can come across as slightly cool and detached. This is merely an extension of their leaning towards being level headed and not displaying emotions so do not misinterpret a lack of smiles as unfriendliness.
As a culture that still respects hierarchy it is important to show due deference to those in senior positions when doing business in Estonia. Titles are therefore very important. Use "Härra" (Mr.), "Prova" (Mrs.), or "Preili" (Miss) followed by the surname.
Business cards are essential but there is no ritual surrounding their exchange. It is always a nice gesture to have one side translated into the local language.
Communication:
Estonians are direct communicators. They say what they mean and mean what they say. However, there is a certain diplomacy in their communication style which means they will temper their comments if they feel it could harm a relationship or cause someone embarrassment. Silence is often used to collect thoughts in order to respond to delicate questions.
Conversations at the start of a relationship will be pragmatic and reserved. Estonians are not emotive speakers and may find those that are overbearing. A certain level of professionalism and respect should always be demonstrated until a relationship warms up, so politeness is key when doing business in Estonia.
It is important to always keep to your word and deliver on what you promise. Failure to do so will damage your reputation. Try your best to mirror the Estonian preference for tactful language in tricky situations so as not to cause individuals embarrassment. Never lose your temper or raise your voice as this will damage your standing.
Meetings and Negotiations:
Meetings in Estonian are formal. It is proper etiquette for the most senior figure of the team will usually open proceedings with a short speech and introductions. Similarly the most senior member of the other team should give a short speech thanking their hosts and introducing themselves. Small talk, if it occurs, is short and simple.
Prior to doing business in Estonia and having a meeting it is recommended to send an agenda. If possible, have all written materials translated. Presentations should be a blend of visual and oral information backed with accurate figures. Estonians do not appreciated hype, exaggerated claims or gimmicks. Good eye contact with all the attendees is important.
Decisions are made at the top in any business and it will take more than one meeting to accomplish tangible results. The key to success is a good, firm proposal that offers long-term gains accompanied by a building of trust. It generally takes several meetings to reach a decision. When negotiating Estonians can be direct to the point of bluntness and may appear quite stubborn. Always maintain your cool.
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