Business Practices in France

Because of the hierarchical structure of organisations in France, once a decision has been reached in the negotiation process, your French counterparts usually have to go through a similar internal negotiation process with their superiors. When an agreement is reached, it is usually formalised in a comprehensive, precise contract. The deliberation and decision-making processes are usually quite slow. Therefore, patience is appreciated, whereas pressure will be taken negatively.  It usually takes several meetings to reach an agreement. Decisions are usually made outside meetings, by those at the top of the company.

French executives tend to focus on building long-term business relationships, and it is considered important to have a wide network of close personal business connections. In order to establish and maintain those relationships, mutual trust and respect are paramount, and are usually earned through proper behaviour and formality. However, the French tend to maintain a clear distinction between their business and personal lives, so business relationships should not be mistaken for friendships.

Business intentions should be directly and clearly stated. It is common for the French to pay attention to detail, so it is advised to have a carefully constructed proposal and to be prepared for numerous direct and detailed questions. When the French begin repeating their viewpoints that usually means they will not change their position. A way of persuading them to do so is through the use of logical reasoning, given that hard sell techniques or hard bargaining tend not to work. Also, since agreements tend to take a long time to be reached, longer negotiations can indicate a higher chance of success.

Meetings are generally conducted in French, unless both parts have previously agreed to do it in English. Therefore, if needed, an interpreter should be arranged some weeks in advance. All presentation material should be bilingual, and it is advised to include some French references, as that would be considered a plus. When meeting and discussing business in France, it is recommended that you lower your voice and behave in a formal way. It is common to interrupt people before they have finished what they were saying, and it might imply that you are interested in what is being said. Humour in meetings is accepted, but it can easily be misinterpreted, so caution is recommended. Also, when making a joke it is important to keep in mind that the French tend to be amused by intellectual jokes, irony and real life funny situations.

Even though formal surroundings are considered more appropriate for meetings, business meals are common practice - but they tend to be less formal. They are usually conducted in restaurants rather than cafes or bars. Lunch and dinner meetings are particularly popular during the initial phase of negotiations. Because of the long term approach in business relationship building, business meals tend to be a way of developing a more personal relationship between counterparts, as well as a way of conducting a more open and less formal business discussion. Additionally, business lunches are not considered appropriate for spouses, but they can attend business dinners. It is also important to note that the person who extends the invitation for a meal is expected to pay for everybody.