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The
Cross Border Leader
To
successfully lead and influence, one
must first understand the culture.
For
much of the Far East and
countries in South-East Asia, this
means having a working knowledge of Confucianism
and Taoism. From
this foundation, one can then focus on key cultural business
values, communication techniques and (most importantly) how
to develop business relationships.
These
Programs are Designed For:
Expatriates
(Expats) preparing for assignment
Expats
currently on station
Frequent
flyers engaging in international business
The
Focus is on:
China
Taiwan
Korea,
and
The
55 million Overseas Chinese in located in countries such as
Malaysia
Delivery
Methods
We work with
organizations, business delegations going overseas and individuals.
For
executives and expats, most clients prefer executive Coaching
For
groups and overseas delegations, most clients want training and
Workshops
Instruction
does not have to be live, we use blended (live and online) methods
as well.
As
an American named Ben
Franklin once said, "An ounce
of prevention is worth a pound of cure."
More
Resources
Books on
Chinese Business Culture and Business Practices
Even people who speak the same language often misunderstand
each other. This was illustrated in the following story.
A man
walking down the street noticed a sign in the window
of a restaurant that said, SPECIAL TODAY--RABBIT STEW.
He said to himself, "That's a favorite of
mine," and
went to order the stew. After he had taken three or
four bites, which did not taste right, he asked
the waiter to
call over the proprietor. "By any chance is there
any horsemeat in this rabbit stew?" the customer
asked. "Well,
now that you ask, there is some," replied the
owner. "What
is the proportion?" asked the man. "Fifty-fifty," came
the reply. Now most people would have felt that no
further questioning were needed, that there was a clear
understanding.
But this man pursued the issue. "What do you mean
by fifty-fifty?" he asked, and the proprietor
replied, "One
horse to one rabbit."
There
was a famous story told by Winston Churchill about an argument
between American and British military officers
during WWII about the planning of what came to be known
as D-day. The British wanted to "table it." To
the Americans that meant to delay the matter until later-to
the
British it meant deal with it now.
Unfortunately,
there is an even greater potential for Chinese and Westerners
to misunderstand each other
due to different
culture and business practices. To understand why
that occurs, it is important to know some of the
major differences
underlying
how people in the two cultures think.
Understanding
Eastern and Western Thinking Patterns
It's important
to realize that one of the more subtle aspects of culture
and business etiquette has to do the way one thinks about how the world.
The following table presents some of the differences
between how the Chinese and the Western individuals think
about culture and values.
Cultural
Values
Expressed
West
(America & most
European countries)
East
(The
Chinese and Most Asian cultures)
Type
of Logic
Linear (More
causal relationships and direct associations between
A and B)
Spiral
(more roundabout and subtle)
Expression
of Agreement and Disagreement
More
argumentative, willing to express disagreement verbally
More
difficult to say no even if one means no, disagreement
expressed nonverbally
Communication
of Information
More meaning
is in the explicit, verbal message.
Use
of direct language
Meaning
is often implied or must be inferred
Use
of indirect language patterns
Expression
of Honesty
More
overt, one is more likely to ask the person to "speak
their mind" or "get it out on the table"
Subtle,
nonverbal
Expression
of Self
"I"-oriented
Sender-oriented
"We"-oriented
Receiver-sensitive
Thinking
Orientation
More
rule based or based on application of abstract principles
such as regulations or laws
Tends
to take context and the specific situation into
account in
rule interpretation
The
Individual
Has
to have rights and greater need for autonomy and
individual achievement
Group
duty
preservation
of harmony
Nature
of the Business Relationship
Less important, tend to
substitute relationship for written agreement, superficial,
easy to form, not long lasting
Most important business
cannot occur until relationship if sound, written agreement
secondary to quan xi, hard to form, long lasting
Conflict
Resolution
Trial
or confrontation, use of lawyers and courts
More
mediation though trusted third parties
Time
Sense During Meetings
Be
on time and end on time.
Appointments
less driven by exact start and end times
Conflict
results
Perception
of two states: win or lose
Win-Win
To
lose is to win
Lose
in order to win
The Importance of Business Customs or How
To Blow a Business Deal
This
different culture world views cause a great deal of frustration
and distrust between the individuals
attempting to work together. Three examples are listed below.
•
A businessman went to Taiwan to close a deal with
the president of a large paper company. Since they were meeting
for the first time, they started out with the normal pleasantries
such as "How was your trip?" etc. It turned out
the businessman happened to be from Columbus, Ohio, the home
of Ohio State University. When the president of the Taiwanese
company mentioned that his son was going to this school,
the business person then said, "Yes, it's a very
good school, let's talk business."
• A while back, two dotcoms wanted to establish business
relationships with potential tech partners in Singapore.
Through the intercession of a couple of savvy Singaporean's,
an initial meeting was arranged to determine if there
might be some areas of commonalties. The two companies
chose as their representative an American lawyer.
• During
the same trip, another dotcom company had sent their
business development person to meet with Singaporean
counterparts. Meeting followed meeting and at the end of the week things
looked very promising. Both sides were very pleased
at the progress and the potential. Then, two weeks after coming
back to the U.S., the contact person was promoted
to a VP position and a new person took over.
If
you missed the point of these stories, one probably doesn't
understand
certain culture values such as lianzi
& mianzi and guan
xi.
Americans
quickly establish business relationships, but there relationships
are generally shallow and not
particularly long lasting. Throughout the Orient, it takes
time
to develop the relationship, but once it's developed,
it tends to last
for
a very long time. This simple observation means that
Americans
and some Europeans tend to lose out on business deals.
It is
also a fairly common practice for multinational corporations
to rotate people through a country
every two or three
years. Of course, once that expat leaves, they
take with them
relationships it took months and years to cultivate.
To make matters worse, many companies tap employees
who are experts in technical or management matters
as their
overseas
managers. However, a recent study finds other
skills vital for success.
Prudential Relocation, an arm of Prudential
Insurance, asked 72 personnel managers working for
multinationals to name the traits required
for overseas success. Nearly
35% said culture adaptability, patience, flexibility
and tolerance for others' beliefs. Only 22%
of them listed technical
and management skills.
Elements of Chinese Business Etiquette
A common mistake business people make before
going overseas is not making an effort to understand the
basics, such as how to make a positive first impression.
These first impressions are based on etiquette and greeting
rituals that vary for different countries. The business etiquette associated with the wai in Thailand,
the bow in Korea and Japan, and the handshake in the West when done properly
create a good first impression. When done wrong, one potentially
botches the relationship in the first 30 to 60 seconds.
Unfortunately,
creating a positive first impression is not enough. One
should also have an understanding of the following
aspects of Chinese business etiquette:
• Gift giving
• Greeting rituals
• Business relationship development
• When to display emotions
• Time perceptions
• Differences in decision making and problem solving
• Guest-Host relations
• Negotiation styles
• How to use intermediaries
• Meeting customs and conduct
• Use of the names, titles and business card presentation
• How to establish relationships with government officials
Finally, according to Mark Buchman,
who teaches a class called "Doing
Business in the Pacific Basin" at UCLA, there are
five principles (The 5 Ps) that one must keep in mind to
successfully
deal with different business etiquette in general. They are:
1.
Plan. It doesn't have to be the 60-page bulletproof version
one would present to the venture capitalists, but
there has
to be something written that all agree on. It's critical
to define the fundamental opportunity, your competitive
and marketing strategy, and its tactical components.
2.
Persevere. It's not easy to do business there, so don't
give up. Many sound business concepts fail when the
company loses heart too early in the process.
3.
Patience. If you are a financially driven company that
sets high hurdle rates with short-term payback periods,
you will give up too early and lose the investment
or not have
the guts to try.
4.
Personal Relationships. Something generally considered
*not too important for most task oriented
managers is extremely important in Asia.
5.
Perfection. We are bound to make many mistakes. Learn
from them and don't make them a second time.
To those five, I would add a six principle, "Prevention." As
Ben Franklin once said, "An ounce of prevention is
worth a pound of cure."
Our
greatest enemy is our own ignorance. If we don't take
steps to understand the subtle aspects of Chinese
culture
and business practices, we will most likely never experience
the sweetness of success
Digital Dragon: High-Technology
Enterprises in China
China Dawn: Culture and Conflict
in China's Business Revolution
Passport China: Culture and Conflict
in China's Business Revolution
Business China: Your Pocket Guide
to Chinese Business, Customs and Etiquette
Doing Business in China: A Practical
Guide to Understanding Chinese Business Culture
Cowboys and Dragons: Shattering
Cultural Myths to Advance Chinese American Business
Chinese Business Etiquette: A
Guide to Protocol, Manners, and Culture in the
People's Republic of China
b. There are coaching
and training for the side of things not easily
learned from the books.
c. We can also refer you to experts here
and in other countries for individualized coaching
or training.
According to Andrew Kwok, a consultant with
many years of experience in this field:
Guan xi (connections/relationships) is a
very important element in doing business in China. Being
introduced by even midlevel government bureaucrats can
give you a head start in the trust building process with your potential
Chinese partners.
Bring lots of business cards when visiting
China. Don’t be afraid to
offer your business card. Chinese people love to exchange business cards.
Chinese names are traditionally written with the last name first and other
names second.
In recent years, the Chinese government
has been aggressive in launching various campaigns against
bribery and graft. However, bribery and graft
are still problems. It would be best to establish your reputation and
avoid being involved in such behavior at the beginning of the relationship.
Do not give lavish gifts. It may be seen
as a bribe. Never give clock as a gift. The words “give
you a clock” sound similar to “attending
your funeral”.
Do invite your host to a meal. The Chinese
people love elaborate meals. If you invite the General
Manager of a company, do expect him to bring along
a couple of deputies and assistants to the event. There will be a number
of toasts throughout the meal. You are expected to make at least one
toast to the most senior member of the Chinese party.
A great site that discusses the numerous
aspects of Chinese culture.It contains lists of over
700 web sites organized into many different categories
of subjects that include: About China, Feng Shui, Proverbs
etc.
Here you will find a series of reports
on Chinese (Taiwanese) business customs, etiquette, cross-culture
communication, negotiating tactics, business culture,
manners and business entertaining.
For the person who enjoys learning from
pictures: the site contains a number of very interesting
pictures from modern and ancient China. The site is organized
into sections that include: maps. archaeology, art, divinities,
people, historical sites, historical illustrations, technology,
customs, and stereotypes.
One cannot understand a Chinese culture
unless one also is familiar with the classic texts that
shaped this culture. The site contains a large number
of translations to for classic texts of Chinese literature.
It's organized in categories that include:
Confucian philosophy including the Confucius
and Mecums,
Of interest to many business people is
Sun Tzu's classic, The Art of War. Many Chinese
read the book for its insights into business, it's
customs and practices even though it was written almost
over
2500 years ago.
This
is an organization which aims to enhance awareness of
intercultural issues in education, policy-making, and
business, to facilitate
communication between people of different cultures, to
provide professional expertise in culture issues,
to develop standards for interculturalism, to promote
exchange of ideas and experience in the intercultural
field. This
site provides newsletter with great articles regarding
intercultural issues.
InterculturalRelations.com
is a free online interdisciplinary resource designed
for the interculturalists around the
world who study, teach, train and/or research in
cross-cultural psychology, cultural anthropology, intercultural
communication,
multicultural education, race/ethnic relations
(sociology), multicultural literature, sociolinguistics,
international
business and other related sub-disciplines. This
site provides
researchers and teachers to keep up with relevant
developments (research results and methods) in other
related intercultural
relations disciplines, and also help to promote
efficient research and effective teaching and training
in intercultural
relations (ICR).
This page contains a list of classic Chinese books--many
of them available in English versions.
Cultural
Bibliography
Training Bibliography.
The list provides books and articles to increase one's understanding
of how to train in different cultures.
Cultural
Anthropology. Comprehensive list of resources that cover
many areas of the world. It includes handbooks, web sites and
books on the subject.
The
Cross Border Leader
To
successfully lead and influence, one
must first understand the culture.
For
much of the Far East and
countries in South-East Asia, this
means having a working knowledge of Confucianism
and Taoism. From
this foundation, one can then focus on key cultural business
values, communication techniques and (most importantly) how
to develop business relationships.
These
Programs are Designed For:
Expatriates
(Expats) preparing for assignment
Expats
currently on station
Frequent
flyers engaging in international business
The
Focus is on:
China
Taiwan
Korea,
and
The
55 million Overseas Chinese in located in countries such as
Malaysia
Delivery
Methods
We work with
organizations, business delegations going overseas and individuals.
For
executives and expats, most clients prefer executive Coaching
For
groups and overseas delegations, most clients want training and
Workshops
Instruction
does not have to be live, we use blended (live and online) methods
as well.
As
an American named Ben
Franklin once said, "An ounce
of prevention is worth a pound of cure."
More
Resources
Books on
Chinese Business Culture and Business Practices
