This sizeable country (1,648,000 square kilometers/628,000 square miles) is largely a plateau averaging 1,200 meters (3,940 feet) in elevation. It attracted migrating Indo-Europeans, then occupying Europe, as early as 2000 B.C. Another Indo-European invasion took place (from the Caucasus Mountains) around 1000 B.C.; this introduced iron, copper and horses, thereby strengthening the area. These factors, as well as an extreme climate that has engendered a tough, vigorous populace, have enabled Persians to enjoy dominance of the region up to modern times.
The Pahlavi monarchy (the Shah) was overthrown in 1979, and the Islamic Republic of Iran was established and endorsed by a universal referendum a month later. Ayatollah Khomeini emerged as the undisputed leader. Rule by religious leaders has continued into the twenty-first century. In economic terms, it is important to understand that currently the Iranians are cautious about signing large new contracts with foreign firms. There are big differences in attitude between the private and the public sectors: whereas trade with the private sector can be fast, mobile and present-oriented, the state has put on the brakes and is more long-term and future-oriented in the types of businesses it will consider. Priorities for acceptance of projects are a willingness on the part of the Western company to invest now—with little financial help from Iran—and reap the rewards later; to create employment for Iranians; and to produce products in Iran that can also be exported to other countries in the region.
Iranian, or Persian, culture goes back more than 3,000 years, and Iranians proudly adhere to their traditions and to their sense of leadership and power south of the Caspian. While Muslim, they identify little with the numerous Arab states in the Gulf, and they carried on an inconclusive but economically damaging war with Iraq that ended in 1987. Their cultural classification is multi-active and dialogue-oriented, although they are much less loquacious than Arabs. (See Chapter 3 for an explanation of these terms.)
In general terms, spiritual leadership is dominant. When the spiritual leader Ayatollah Khomeini decided that it was time for the Shah to step down, support was massive and immediate (over 98 percent). In business, the leader may be identified as the last person to enter the room at a meeting, and he (and it will be a “he”) will sit in the middle. Alternatively, he may show his hospitality by greeting the visitors at the entrance to the room.
Academic achievement is of high importance: in government the Iranian leader must be a “fully qualified theologian,” selected by “experts.” In business, education and specialized knowledge give managers status. Managers may have been educated in the West as well as in Iran.
Iranians keep their distance more than Arabs; they are used to this, as the population density is considerably lower than general in the region. They are perhaps somewhat more punctual than Arabs and would claim to have a greater respect for other people’s time. Lack of punctuality in Tehran may be blamed, justifiably, on the traffic.
Iranians are talkative (although they appear taciturn to their more talkative neighbors) but respect dignity and seriousness of intent in speech. They can be loquacious but are not idle chatterers, particularly in business. They have a strong sense of what is appropriate and courteous according to context. They are keen to draw contrasts between what is proper in polite society and situations and what is suitable for the marketplace. They can be persuasive and admire persuasiveness in others. They can tolerate small talk, particularly mutual praise of the hospitality of others, but they soon wish to turn to the heart of the matter, to show that they have a sharp intellect and to demonstrate that they have something to say.
Iranians like to talk, but they will listen attentively if they think that their interlocutor has something new to say. They are greedy for technical know-how and, because of their admiration for “experts,” will listen eagerly to the latest technological ideas. However, care should be taken not to give the impression that the West is superior, as they will respond very negatively if they feel that you lack respect for them or undervalue them. After all, they have a powerful sense of the superiority of their own spiritual values and wish to build a better future for themselves, through technology, without espousing values that they view as decadent and doomed to eventual failure.
Some sort of introduction is required before getting down to business: a good topic is praise for their hospitality and the arrangements made for you. However, they are keen to enter into serious negotiation fairly early on, and will signpost this quite clearly by asking directly for your purpose and intentions. They may evince a certain amount of suspicion until they are absolutely certain what the “real aim” of the negotiation is.
It is important to show how the business you are discussing will benefit Iran. Concentrate on this rather than on appearing too greedy or showing you know best. Listen carefully to what they say, as they are prepared to talk at length, and be prepared to analyze the underlying message later as it may not be immediately apparent. Ensure that what you offer them is absolutely the latest technology; they will not appreciate being offered anything they consider outdated. They are won over by solid information and are likely to take copious notes—so be careful not to contradict yourself later. Once you have won their trust and respect, more business may follow. Emphasize your company name; the fame and reputation of names is of great importance.
The Iranians are very persuasive and will expect you to persuade them in return. If at first they seem to respond negatively to an idea, this does not mean that you should give up. Try again, about three more times. They have immensely strong faith in their ideas and will expect you to have faith in yours. Giving up immediately would arouse suspicions of weakness or lack of conviction. This applies also to invitations—they love inviting and being invited, but will often refuse before accepting.
Iranians are eager to demonstrate that they have sharp minds unclouded by decadent Western vices such as alcohol and recreational drugs, and they will not admire vagueness or uncertainty in others. Contracts and agreements should be short but complete; Iranians do not appreciate long-windedness. Be prepared for differences in approach from those managers who have been educated in the West and those whose education has been in Iran. It may be easier to strike a chord with the former.
Remember that meetings may be broken by long prayer sessions, and that it is pointless to arrange business trips to Iran during Ramadan.
The key is to show Iranians respect. A good way to demonstrate this positively might be to praise their cultural heritage, of which they are justifiably proud. They feel that they have a much richer culture than that of the Arab world, so any praise of their art, craftsmanship, design or architecture (perhaps the easiest areas to appreciate readily) would be welcome. They particularly admire craftsmanship that has been laborious and painstaking, as in their carpets and the interior decoration of their mosques.
Avoid humor unless you are absolutely certain that the context permits it. It is particularly important to avoid humor at the expense of others, as this is viewed as unkind. Do not smile too much: they don’t.
| MOTIVATION | |
| KEY | Show them respect |
| Cross-century mood |
• Would like to modernize and acquire technology without losing their spiritual poise.
• They accept investment on the basis that rewards must come later.
• They welcome help in producing products in Iran that also can be exported.
• Women’s movements are restricted but growing in strength.
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| Motivating Factors
• Respect dignity and seriousness in speech.
• Be persuasive—they admire this.
• Acknowledge academic achievement, especially in theology.
• Offer them technology without “cultural strings.”
• Praise their hospitality before getting down to business.
• Indicate your purpose and intentions early on.
• Listen carefully for their real message.
• Show kindness, gentleness, courtesy.
Avoid • Giving strong opinions on political subjects.
• Discussion of Islamic taboos (alcohol, pork, etc.).
• Too much body language (they are not Arabs).
• Idle chatter.
• Giving any gifts with a representation of the human face (considered idolatrous).
• Contradicting yourself (they take notes).
• Discussing the situation in Iraq unless they bring it up.
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