Creating An International Culture Of Success

The International Business Dimension

Multinational teams present new challenges for the International manager. There are logistics problems: How do you coordinate teams that work in different time zones? What kind of collaboration can you create in a team that rarely sees one another?

As well as the logistic problems come cultural problems. For example, successfully creating a culture of innovation can be a challenge. Honeywell experienced this, according to a November, 2013, Time article, when Rameshbabu Songukrishnasamy began working as general manager of the company’s R&D centers in Shanghai and Beijing. He found his employees were not innovating. They weren’t tinkering or inventing on their own — not a positive sign in an R&D lab! “They were happy just doing what they were asked to do,” Rameshbabu says. The problem is, R&D is about doing something new.

A project manager for a large corporation in Brazil recently told me that the PMI Book of Knowledge is used infrequently at best inside Brazilian projects. He also warned against assuming that someone with a PMI certification has extensive experience, as is the case in the US. — Moore, Brandi, The Little BRIC Book.

Rameshbabu found that his Chinese workers had a fear of failure. They worried that the company would be upset if their work did not yield positive results, so they didn’t experiment. Another problem is that some Chinese engineers “tend to shy away from critical questioning,” a process that is fundamental in R&D. “The reason they are able to make so much innovation in Silicon Valley is that people question the status quo and find alternative ways,” says Rameshbabu. But he found that Chinese culture and education focused on rote learning, not critical thinking.

Creating A Culture Of Success

Creating successful International programs requires understanding and adapting to different business cultures. Applying Western management practices in Asia will fail, just as surely as transplanting Western employees into an Eastern environment. Imagine an independent, critical thinker from Silicon Valley landing in Foxconn, Shenzhen — where challenging the status quo is forbidden.

Team dynamics play a huge factor in management style, objectives, and capabilities. Building a culture of innovation is just one example of where these dynamics become complicated. Power distance will affect everything from goal setting to how problems are socialized. Communication style can quickly lead to misunderstandings. Differences on the fluidity of time can mean completely missing the mark with customer deadlines. And differences in identity and engagement style can lead to initial confusion, bad first impressions, or distrust.

This is why understanding business cultural practices is so important. Hyrax International LLC has a program that explores each of these five preferences. The program examines each of 27 different management disciplines, such as goal setting, risk management, change management, and assessing outcomes. The affect of business culture on each discipline is explored and explained, providing a road map to success on the International management scene. The company also offers many free resources to explain and explore International project management, and is also sponsoring Successful International Project Management, an in depth book that maps project management processes to cultural preferences.

We’ll be posting five more parts to this article (read Part 2, or see the entire series right here) in the coming couple of weeks. Each post will look at one of the five business cultural preferences, and briefly introduce how that preference impacts and affects the 27 management disciplines.

Hyrax International LLC’s Global Project Compass™ is the only visual map that clearly shows the connection between business culture and business process. This is what makes Cross Cultural Management™ so much more effective than traditional management.

The Compass maps 27 project management disciplines directly to business cultural preferences, and shows how these preferences affect business. The goal of the Global Project Compass, and Hyrax International’s associated management program, is to show how culture affects businesses worldwide — and to provide a clear map on how businesses can adapt successfully.

Where In The World…?

Have you ever wondered what makes the Global economy work? How your country makes most of it’s money? Or perhaps where people are migrating on a global scale? What language to speak in the U.S. if you don’t speak English? Here are some fantastic interactive maps and graphs to give us answers to a few of our Global questions.

What Does Your Country Export?

Do you know which export makes your country the most money? Using data from the CIA Factbook, the Global Post labeled every country in the world by its highest valued export (meaning, the commodity that makes the country the most money in the global market).

It’s probably not a surprise to learn that much of the world run’s on oil, and that Europe is where most machinery and automobiles are made (perhaps because of modernization but, also, a wonderfully centralized location). Take a look at the Global Post’s original article for a fully interactive map.

World Commodities Map
World Commodities Map: What is your country’s major export?

The Global Flow Of People

Did you know that from 1990 to 1995, about 366,000 people moved from Thailand to America — but only 72,000 did so between 2005 and 2010? Or that in the early 1990’s, most of the roughly 7 million people migrating around # moved between Pakistan, Iran, and Afghanistan — but that after 2005, that changed dramatically as people started to spread across India, Asia, North America, and Europe?

It’s fascinating to see how people migrate around the world, and even more interesting to wonder what motivates these changes in global flows of people. Thanks to Nikola Sander, Guy J. Abel & Ramon Bauer, we now have a fantastic interactive map to explore. Their Global Migration Flows Map was published in Science recently.

Global Migration Flows Map
Global Migration Flows Map

12 Charts To Make An American’s Blood Boil

Thanks to the article Overworked America: 12 Charts That Will Make Your Blood Boil, published by Mother Jones, we now know that while the U.S. economy has grown by about 60%, and corporate profits are up by about 20%, the American worker is not so lucky. “Productivity has surged, but income and wages have stagnated for most Americans. If the median household income had kept pace with the economy since 1970, it would now be nearly $92,000, not $50,000,” writes Dave Gilson.

Take a look at Gilson’s article, which features a dozen interesting (and infuriating, if you happen to be American) graphs such as the following one, which shows how the “top 1%” wage rates have skyrocketed in the past decade, and productivity has been steadily pushed upward, but overall wage averages remain stagnant.

US Wage Gains
US Wage and Productivity Gains, 1979 to 2009

Most Common Language Other Than English

Finally, Ben Blatt at Slate brings us the definitive answer to the question: “In the U.S., what’s the most common language spoken besides English?” He breaks it down by State, which makes it all the more interesting. I would certainly have expected some diversity, given his research and source. “One of the most interesting data sets for aspiring mapmakers is the Census Bureau’sAmerican Community Survey. Among other things, that survey includes a detailed look at the languages spoken in American homes,” writes Blatt.

His first pass was revealing. The answer is Spanish, at least in all but a few of the 50 United States. In retrospect, perhaps this shouldn’t be surprising, but it did drive Blatt to take another pass, excluding both Spanish and English. Visit his original article for a more thorough breakdown.

Languages By State
The Most Widely Spoken Language in the U.S. Other Than English

What Is “Saving Face” In Other Cultures?

What does “saving face” really mean? Westerners tend to think “face” means preserving one’s reputation… but that’s not right. It’s particularly important in high-context cultures, including most of Asia and the Middle East, where tradition is highly valued and the interests of the group outweigh the interests of the individual.

Hi, I’m Zacharias Beckman, President of Hyrax International and I wanted to speak briefly about “what is saving face.” Face is a collectivist notion. It’s something that applies in many Eastern cultures and as such it’s an extremely foreign idea to Western culture.

Misunderstanding “Saving Face”

So, here’s an example of how not understanding face can go wrong with Western and Eastern interaction. Let’s say you are a Western Manager, applying western management theory. So, if one person does a particularly good job, the natural thing to do is to reward that person, to call them out and tell them they did a better job, possibly give them a raise or some kind of a reward within the firm.

But, in Asian society, this actually sends the wrong message. What you’re doing is saying that the individual failed in their responsibility, to their group, to their fellow employees, because that person did not show those individuals how to perform well. So, the net result is you tell one person that they didn’t do a good job, and you tell the entire group that they also failed to do a good job, in this respect. It backfires terribly when Western managers do that with Eastern cultures. And this is a great example on why it is so important to really understand what face is whenever you are doing business with the East or the Middle East.

What is Face?

It was first defined by David Ho, a social scientist working in Hong Kong. He basically defines saving face as saying that face is lost when an individual, or someone who is closely related or connected to that individual, act in a way that fails to meet the social obligations that are set up for that person. In other words, if they don’t meet their social responsibility with family, with work, with their friends, then they loose face.

In Asia and the Middle East, having face is a very bankable notion. It is a literal translation, or a literal representation, of your status in society, of your reputation and your abilities to fulfill your obligation within that social network. Because collectivist societies are so tightly integrated and tightly social, there is only one face. Social, work, family, it’s all integrated into a single representation of who that person is. That means that your face at work and your face at home can be damaged in the same way.

If you’d like to see another take on saving face, check out this short video (the bit on saving face is in the latter half of the video).

Start Outsourcing The Little Things

Many small businesses don’t understand the benefits of outsourcing or where to get started. There are plenty of opportunities to lower your stress levels by hiring an outside contractor. Here are some tips on how to get started, and how to successfully engage an outsourcing company.

Hi, I’m Zacharias Beckman, President of Hyrax International and I wanted to talk a little bit more about successful strategies for outsourcing. We recently had our client of us ask how they could be more successful with their outsourcing and stay focused on what they do really well. Outsourcing helps us focus on our core competency, by taking all these distractions and letting somebody else worry about them. And for larger firms, outsourcing will reduce costs, streamline operations and quite often get us to market faster.

We don’t hesitate to outsource legal services and accounting, so, why not other things? Services like Ziptask, oDesk and Elance, make it very easy to outsource a lot of services. For example, you can outsource a personnel assistant, or web research, data entry, SEO operations for your website. You can even have an entire website designed for you very easily.

All of these services –- oDesk, Ziptask, Elance –- they provide quick work, fast turn around, low prices, but a recurring problem is getting quality work. So, here are few strategies.

Number one, don’t take the first cheapest bid that you get. Instead, take your time, review the bids, look for the most literate bids and look for well reviewed respondents. Also, make sure that your contract, your work order, is very explicit and detailed in what it is you want.

You can also test out each respondent with a little bit of piece work before you actually give them the entire contract. Make sure they can do the work before you make a big commitment.

And finally, use project management services. Ziptask and oDesk both offer a managed level of support where they will provide an English speaking Project Manager to run the project for you and make sure the quality is there.

Also, don’t be too trusting and rush right into a deal. For example, if you are doing a new product development, you might consider outsourcing the product development and construction to one firm, but outsource the quality assurance to another firm. By separating these concerns the two firms essentially become check and balance to against each other.

6 Tips For Successful Global Expansion

Exporting is an opportunity that many small and medium sized firms should be taking advantage of to expand and grow to their full potential. Yet, fewer firms are exporting than one would expect. For instance, in this 2013 Canadian study, less than 2 per cent of such businesses are exporting. At the same time, recent import and export figures at the United States’ largest port, the Port of Los Angeles, point to considerably lower export volume than in previous decades.

These figures are mirrored in the U.S. by McKinsey’s Global Institute study, which points at a mere 5% of businesses exporting. But there is growth. According to the report, “Global flows are growing and contribute to GDP growth. Flows of goods, services, and finance in 2012 reached $26 trillion, or 36 percent of global GDP — 1.5 times as large relative to GDP as they were in 1990.”

With such a low percentage of firms exporting goods there is huge opportunity abroad — a gap that will likely be filled as the global economy recovers.

The Globe And Mail’s Michelle Little, in a recent article, also points out the high potential for returns by “creating a borderless product, networking to make key contacts abroad and embracing technology to both reduce costs and reach out to potential clients.” According to the Globe article, one firm to take advantage of export opportunities was Imprint Plus, specializing in name badge systems and boasting 35,000 customers in 75 countries. But it wasn’t always so: The firm can attribute much of its success to a strategic shift. When CEO Marla Kott saw the opportunity, she made the decision to refocus the business in a much more international direction.

Other firms, including Foxy Originals and Procurify.com, have realized similarly successful results by leveraging a global strategy.

As Ms. Little writes, “With a whole world outside our Canadian borders, opportunities are there for those willing to embrace technology, create key social networks and see past the headaches of patent infringement and ever-changing regulations.”

And, Imprint Plus’ Ms. Kott provides the following six strategic tips for businesses seeking to expand globally and leverage the potential of an international market:

  1. Innovate and create mighty products or services that are unique.
  2. Do an extensive competitive analysis and don’t stop at the U.S.
  3. Speak to prospective customers.
  4. Be fearless and look at money spent attending trade shows as education funding.
  5. Educate yourself continuously through government programs, trade commissioners, and business intelligence.
  6. Join an international networking organization.

For the complete article, see Three Companies Offer Advice for Successful Global Expansion in The Globe And Mail.

Managing Time In Different Cultures

Meeting deadlines and managing project workflows when working with people from different nationalities can be one of the most challenging aspects of managing intercultural business relationships. Different cultures have very different perspectives when it comes to the importance and flow of time.

Hi, I’m Zacharias Beckman, President of Hyrax International. Somebody asked me recently how different cultures think about time, and I thought the best way to explain that would be with a short story.

Recently, I moderated a panel, here in the United States. In order to prepare for the panel I put together about seven slides that introduced the topic, which was the global economy, and each of the panel members. But, when I ran those slides by the panel coordinator, she was really concerned that I would take too much time. I had seven slides, she told me I had only four minutes, to go through the entire introduction.

So we start the panel presentation, everything goes great. We get through the introduction, less than four minutes, and we start the panelist’s portion. Now, during the panelist’s presentation, she is sitting right up in front, where I can see her, holding up cards to show us how much time is left. 30 minutes, 20 minutes, 10 minutes, 5… 2… and the last card, a big zero on it, to show that we are done. You have to stop now. So we end up wrapping up the panel at exactly 60 minutes, when the panel coordinator comes up to the podium and makes it clear that we’re done, even though there were still a lot of people raising their hands and wanting to ask questions. This is typical in the United States, and few other Western cultures where time is so important — it rules all.

Now lets compare this to my very first experience teaching, offering  a presentation, in Asia. I went there with all of these preconceptions about how important time is. As I was preparing for the presentation, I asked the Project Manager, how much time should I take and he said, “ohh… you know, about an hour. That’s fine. You do whatever you think is right.” Well, being American, I planned exactly for one hour.

Now, the next day, when the presentation starts, I’m really stressed out. Because it’s 10 o’clock, we are supposed to be starting, and people are just starting to show up. I hurriedly asked the Project Manager, “Do you want me to shrink the presentation, because we are late, I could pull it down to 45 minutes or so.” And he says, “Oh, you know, if you think that’s right, you do whatever you think is best. 45 minutes would be fine.” So, on the fly, I cut pieces out and we wrap it up in 45 minutes.

The presentation went well, but afterwards when I am talking with the Project Manager, he asked me, “Why did you finish so soon? Everybody was loving it! They had so many questions! We could have gone for another hour, or another two.” So it turns out that I had sent the wrong message. I had said that my time was more important than spending time with the group, answering their questions.

It’s important when we are working in a multinational context to be flexible and to be observant. To ask somebody, what does the local culture expect and to look for hints. I would have been better served to have paused the presentation and ask the Project Manager, “Do we need to finish up now? Does the team need to get back to work? Or should we keep going?” Remember that particularly in Asia, the focus won’t be on time, it’s going to be on developing a relationship… the focus is going be on you.

Should I Translate My Business Card?

Exchanging business cards (or “name cards” as they are called in China) is an important ritual throughout the business world. The business card is part of your introduction and, in many cultures, it’s unforgivable if you don’t have a professional card. But in an increasingly Global business world, there are linguistic and cultural considerations too… So should you translate your card, and if so, how many times?

Hi, I am Zacharias Beckman, President of Hyrax International. I recently had a client ask me if they should translate their business card into another language, for the clients they are working with around the world. This really depends on what kind of a business you are in, for one thing. Let’s say, for example, you are a U.S. based importer bringing products into the U.S. from around the world. You probably wouldn’t need to translate your card in this case because for one thing, your suppliers are going to expect to doing business with you in English. But, on the other hand, translating your card into many different languages, for every country you do business with, would probably be impractical.

Now, another possibility is, let’s say you are a language translation company and it’s important that you demonstrate competence and ability in certain languages. In this case you probably would want to translate your card, or at least some part of your card, to indicate that you support all these different languages in your translation service.

Reputation also matters. Having a U.S. based business does bring a certain degree of credibility to you. So, translating in English card into other languages isn’t always necessary. Sometimes leaving it in English is actually the right choice. We actually have had our clients tell us that we should just leave our card in English, because it provides a certain amount of credibility.

But probably the most important deciding factor is going to be whether or not language is a barrier. For example, if you’re doing a lot of business in China, with people who predominantly speak Mandarin, you should definitely translate the back side of your card into Mandarin. On the other hand, if you’re working in India, this strategy is unnecessary. Almost every professional is going to speak English and they are probably going to give you an English card, anyhow. Different countries have different rules. In Africa, for instance, you’ll be fine with English cards. But, if you’re going into South America, most likely you should have a Spanish translation because Spanish is widely used in business throughout South America.

Whatever you decide, be practical. I recently met somebody who had not less than five different business cards stuffed into his wallet, and it took him about thirty seconds to find the right one to give me. And it was a very awkward moment. If you work predominantly with one country, then consider translating your card so that you have your native language on the front and a foreign language at the back and leave it at that. On the other hand, if you work with many different countries, then you might want to consider translating your tagline or perhaps your company slogan, and you can do that with a couple of different languages. That will indicate your support of different languages without having five different cards stuffed into your wallet.