When it comes to decision making, it’s important to know who is the decision maker at your overseas partner or vendor (and it might not be who you expect)! Business culture around the world varies a lot. It’s very likely you will experience misunderstandings when Western and Eastern firms work together. Here are some tips on how to avoid the misunderstandings.
I’m Zac Beckman, President of Hyrax International, and I want to talk about who it is at your partner firm, overseas, that actually makes decisions. You might be quite surprised to find out who can and who cannot make decisions. For example, let’s say you’re Asian, Chinese or Indian, and you’re working with a European firm. You might be completely shocked when a subordinate seems to go out on his own, make a decision, and act on it. That’s because many cultures expect decisions to be made at the top and then directed down to the subordinates.
Subordinates are expected to inform their superiors. Their superiors will take this information and weigh it, and then make a decision and convey that decision to the subordinate. So this can cause problems when Western and Eastern firms work together.
Westerners thinks that anyone is empowered to make a decision. They’ll have a conversation with an Eastern partner, and they’ll hear agreement to a particular recommendation or decision; it comes across that the decision has been made. But it hasn’t. All that’s happened is, the Eastern partner whom they are talking to has expressed agreement to the decision. They have expressed the idea that this would be an agreeable decision. But that doesn’t mean its within their power to make it happen. It’s up to the Western boss to communicate to the Eastern, boss at the same level, to make sure that decisions happen. This will not happen by itself.
Here is an example: We had a client who had engaged a firm in India. And they wanted to go visit this firm in India. Get to know them better, which is a great idea. The CEO hopped on a plane, but when he got to India, nobody was there to meet him. The President of the firm that he wanted to visit wasn’t even in the office! The entire trip had not been coordinated, it had not been communicated up the chain properly because the CEO who was coordinating this trip should have been talking to the CEO on the other side.
We have to make sure that the decisions are made at the right level and those decisions need to be communicated multiple times, back and forth. And you have to look for more than just agreement. You have to look for confirmation that the decision is being acted upon.