Mind The Gap

1It’s an Adventure: The Promise (and Perils) of Going Global

There was nothing left to do but sign the deal, a complex transaction between an Australian multinational company and a local Vietnamese group worth more than $5 million. Both teams had sent high-level executives to Hanoi to finalize the details. After several days of discussion, all parties came to an agreement. Stefano—who then worked for a global law firm and was representing the Australians—stayed up all night putting the terms into formal contracts.

The plan was for all parties to meet again in the morning over breakfast. Only one business item remained: the simple formality of collecting signatures on paper. Then, after a bit of mutual celebration, both sides could go home happy. Stefano’s clients would be paying the Vietnamese those millions and getting much-needed services in return.

Except it didn’t work out that way. As soon as everyone settled in together in the morning, the owner of the Vietnamese group spoke up. He said he’d been thinking about the deal. And he had decided he needed an additional $20,000.

Stefano could hardly believe what he was hearing. Twenty thousand was a mere fraction of a percent of the deal’s total value. The amount seemed just enough to be annoying but not enough to cover any foreseeable cost or risk. Why, why, why?

That state of bafflement lasted only a moment. The lead executive for the Australians shot up out of his chair. He was furious, and he let the whole room know how ...