Hi, I’m Zacharias Beckman, president of Hyrax International. When it comes to coordinating international projects, one of biggest challenges we hear about is staying on top of the project.
As an international project manager, you have to know how to stay organized, and you need to know what your team is doing. When you have several different teams, all spread around the world, that’s not always easy. You also need to make sure that one of your teams isn’t being held up, waiting on another team.
This is what Tanya ran into, at one of our clients. She had been managing a U.S.-based team. Her company had just bought a smaller firm in India, intending to set up a “follow the sun” strategy. With teams in the U.S. and India, they could move faster because one team would hand off work, at the end of the day, to their overseas counterparts.
But there was a problem. After a few months efficiency was falling, not improving. Tanya found that the teams were poorly coordinated, and more often than not one would end up waiting on the other one. Tanya needed to change her strategy to accommodate a global team. She had to refocus, and figure out how to get these teams collaborating smoothly despite a separation of over 10 hours.
She made two major changes, both of which focused on improving coordination.
She took a critical look at their project management system, and decided that it wasn’t up to the job. It had worked great when everyone was in one office. But now it had to deliver a new level of coordination. She needed something that could better drive the process, improve visibility to her management team, and show dependencies between team members. It was absolutely critical that everyone know, at any time, who was waiting on them. They also needed better requirements management, and better collaboration tools. Her new system gave them the tools, but it couldn’t solve the communication issues on its own.
Tanya also changed the team schedule, setting up short, collective meetings every day. To avoid burdening one team, she set a rotating schedule: meetings where held at 9am in the US twice a week, and 7pm twice a week, with no meeting on Friday. Team members had to join at least two meetings each week, but it was up to them to pick which ones.
Tanya’s changes showed almost immediate results. The teams became more coordinated, and situations where one team was held up waiting for another pretty much vanished.
In a multinational organization, it’s important to remember that remote teams can feel like they are in a vacuum, lacking communication or cut off. To compensate, a good manager has to be extra vigilant and put in good processes, and good tools, and also make sure that no one team becomes the favorite. Tanya spread the meetings out to share the burden of after hours meetings. By doing so, she also sent the message that both teams are equally important.
Hi, I’m Zacharias Beckman, President of Hyrax International. Managing a multinational team can be really challenging. You have to make sure that each team, around the globe, is coordinating their efforts. That means overcoming the communication problems between them, tracking task dependency from one team to the other, and staying on top of projects — so that one team doesn’t get held up waiting for another one. So, the real challenge is figuring out to stay on top of each team and how do you make sure that all of their activities are coordinated well.
Get The Right Toolbox
Part of the answer is making sure that you have the right tools for the job. A good project management tool is going to help coordinate team activities and tasks around the globe. With the wrong tools in place, project teams suffer. They don’t have good communication, they don’t understand what the other team is doing, and task dependencies — the handoff of activities from one team to the other team — is not coordinated well. You end up with project chaos.
And when you’ve got team members that are separated by 8 or 10 or more hours in a day, this can derail the entire project for more than a day at a time.
We have two “go-to” tools that we use all the time very successfully. And we also have one that is a project nemesis. The one that we don’t like is Basecamp. We tell our customers, “Never use Basecamp.” The thing with Basecamp is, it’s super easy to use. You can sign up and start using it, literally, in a few minutes. People who don’t like process love Basecamp, because there is no process. You just put your tasks in. It’s easy, it’s unstructured, you can attach documents, and it all goes into Basecamp — and it kind of vanishes into Basecamp. That’s the problem, Basecamp doesn’t drive the process. We need tools that drive the process.
Driving The Process
A great project management tool is going to remind people of what they need to be working on, it’s going to track the interdependencies between tasks, and it’s going to make sure that someone doesn’t get hung up waiting on somebody else. This is particularly important for multinational teams where communication is already an issue. We need tools that will fill that gap and work hard to coordinate these teams, because they are already distributed, they are already having a hard time coordinating.
For small companies we recommend Teamwork PM. Teamwork PM is a good step towards an enterprise grade project management tool but it doesn’t have a lot of overhead. Your team can be using it in no time at all. It does coordinate tasks really well between team members, and it tracks dependencies, and it notifies team members of what they need to be working on. Which is one of the key ingredients to success.
For mid-sized and large teams, we recommend Atlassian Jira. It’s an enterprise grade solution. It’s completely customizable workflow system means that you can build out really elaborate, powerful processes to support your team and to support your entire organization. Jira can be customized to go all the way from requirements management and development through to customer support and care.
There are lot of great tools out there, Teamwork PM and Jira are two of them. But the most important thing to remember when selecting your project management tool — make sure it drives the process, make sure that the Project Manager is going to be able to easily get the information they need out of the systems so that they can stay on top of the project — before problems start to crop up.
Be sure to check our website. On this blog post we’ve listed a number of other project management tools that we have used in the past in addition to Atlassian Jira and Teamwork PM.
Our Project Manager’s Toolbox
Here are a few of the project management platforms that we feel are worth taking a look at. We couldn’t recommend Atlassian JIRA (for mid- to large-size organizations) and Teamwork PM (for small-size organizations) more highly, but they clearly aren’t the only solutions on the block. We track close to fifty different project management tools — these are the ones that have risen to the top, in our opinion.
Atlassian — JIRA, Confluence, ServiceDesk for a complete enterprise solution
Genius Project — Traditional, full cycle portfolio and project management platform
I’ve been seeing a lot of management advice lately — hopefully it’s a sign that the U.S. economy is starting to boom again, and projects are taking off. But the problem is, most of the advice I’m seeing is really horrible — at least, if you’re working anywhere outside of America.
Western Management Is… Western
Western management theory works great if you’re managing a Western team. That means a team of people that are completely and entirely Western in terms of their culture and expectations.
For example, in this recent article, Lisa Evans reports that employers are “turning away from the traditional management style of hierarchies.” This is absolutely correct — in the United States. But applying this advice elsewhere in the world could be a huge mistake, especially in the highly organized and role-driven cultures throughout the East. Much of what Ms. Evans writes is sound advice across cultures. She writes that, “Recognizing these basic human needs can create a workforce of employees who are committed to working for their leader because of who they are and how they are treated,” a management principle that is a universal truth. But, as with most Western-oriented management writers, she also adds advice that will fall flat across Asia: “Empowering employees is one of the best ways to get commitment.” Unfortunately, this doesn’t work well in countries and cultures where explicit instruction is expected. In India, for instance, delegating and empowering your team usually backfires. The culture of India, one that produces great technical minds, is still focused on rote training and clear task delegation.
Adapt Your Management To Fit Culture
Don’t be scared of looking for advice online, though. There’s a lot of great advice — but consider the author and their audience. If the article seems to “American,” look for advice from a more International source. One great example is Donna Flynn’s recent article on Managing A Team Across 5 Time Zones. She writes that it’s important to share the burden of communication in a multinational team: “Several months ago we started a rotating meeting schedule. Every month, each team member now has one evening, one mid-day, and one early morning meeting, and misses one meeting that falls in the middle of their night. No team member is expected to attend a team meeting between 10 pm and 7 am.”
Ms. Flynn adds, “No tool can replace being together in the same room. I bring my globally dispersed team together twice a year for workshops,” advice that I heartily agree with. It’s one of the key success strategies that I teach to our clients.
So choose your source. There are even products that focus on overly “Americanized” management techniques. One is The Time Timer. It’s a clock, big, bold, and designed to sit on a conference table and get people to stay focused on the agenda. The product pitch resonates with Americans: “You’re in a meeting, there are only two minutes left, and you’ve been talking around and around without even getting into the most important topic. There was no sense of urgency. And now it’s too late.”
But there’s a problem. This agenda-driven mentality is too Western. It only works in those Western cultures that prize time above all else — such as the U.S., Switzerland, Germany, and a handful of other European countries. But deploy this strategy in South America, and your partners will think you don’t care about getting to know them. Try it in most of Asia, and you’ll be labelled impatient and opportunistic, and they’ll think you don’t want to build a real business relationship. Most cultures around the world do not value time like Americans do. In fact, the most important business cultural preference for them: Relationships. That means taking time to build a relationship, and letting the meeting run long. Long meetings are prized because it’s a sign that everyone is getting to know each other. Short meetings send a different signal: “I don’t value this relationship very highly.”
The most important thing to keep in mind: Be aware of the business culture you are working with. Make sure that the management style you apply is going to be the right style for that culture, and for your team.
How do you learn to “go global” and take your product, and your company, to an International scale?
Hi, I’m Zacharias Beckman, President of Hyrax International. I founded this company because I believe that American businesses, in particular, are really embracing the global economy. That means learning how to adapt products to different cultures around the world; changing a business’s internal culture in order to be compatible; changing how projects are managed, because the traditional Western management style that most of these American businesses employ, those styles are not going to work in Asia or South America or the Middle East. So, American businesses need to start to adapt.
Adapting To “Global”
A new level of business cultural awareness is needed. We need to understand how to communicate with each other, how to adapt to each other’s way of thinking about time, how to manage people with a different concept of power distance or the separation between a boss and an employee. It’s a complex landscape.
Taking a product into another country means adapting that product so that it fits well with the culture there. For example — lets say you wanted to take a product that was a four pack of golf balls, here in the United States, and sell it in Japan. It’s probably not going to work — because the word for “four” in Japan sounds very much like the word for “death.” So taking that product and simply slapping a new label on it in Japanese and shipping it over there — that’s not going to work.
This is why we created the Global Project Compass (see our six-part article on the Compass). It’s a map that takes 27 different project management verticals, things like quality assurance; time estimation; acceptance testing, and it maps them to business cultural preferences. And we see how, for example, communication is going to change each one of these 27 different project management disciplines.
We are global project experts. We understand the technical execution and we understand the cultural implication. Our programs will make sure that you succeed taking your products overseas and building a multinational organization.
Global activity has broadly strengthened and is expected to improve further in 2014-15, according to the April 2014 World Economic Outlook (WEO). Much of the impetus for growth is coming from advanced economies. As the global economy returns to growth, it’s clear there are expanding international opportunities. Businesses are focusing on global economic strategies and new, emerging markets.
But outsourcing, forming a joint venture, or extending supply chains across the globe isn’t easy. Engaging with your partner is, in many respects, like hiring new staff located on the other side of the planet. How do you manage these new employees that aren’t in the office, don’t speak the same language, work a different shift, and will probably never meet your customer or understand the local market? More than likely, they are accustomed to doing business in a completely different way from what you find normal and acceptable.
Doing Business In The Global Economy
Understanding the strong cultural biases and preferences of our counterparts overseas is critical to success. I run into these differences all the time when working internationally. Here’s an example: In a survey conducted across Western and Eastern businesses, respondents were asked to choose whether they strongly agree or strongly disagree with the following statements. Consider your own answer to these questions:
At work, we do business with the firm that has the best product, regardless of our relationship with them.
To avoid a conflict of interest, I avoid doing business with someone solely because of a personal connection.
When presented to Western business people, responses tended toward agreement with these statements. More so, when presented to American business people, the score is almost always very strong agreement. It demonstrates the strong Western preference to be unbiased in the evaluation of products and services. In fact, in many Western companies, there are rules and regulations that specifically forbid preferential treatment because of personal relationships. These companies go out of their way to completely remove personal preference from any buying or hiring situation, making the process one that is as objective and fact-based as possible.
But when presented to Eastern business people, respondents registered strong disagreement with the statements. In India, the Middle East and China, the response is almost uniform: Intense disagreement. These cultures are strongly relationship oriented, and that cultural preference permeates the business environment. A business person making decisions in the BRIC (an acronym for Brazil, Russia, India, China) will focus on how well they know the person or group they intend to do business with. Strong personal relationships are an integral part of doing business. These strong relationships are what keep things moving smoothly. For instance, Japanese business contracts are much shorter than those drafted in the United States. This is because many of the expectations of the business environment are so deeply embedded in the culture that long, detailed contracts are unnecessary and even offensive. Furthermore, the value of “face” and one’s reputation is so intrinsic that it provides a much stronger motivation than a legal document.
Business Culture And Conflict
These fundamental differences in values and business practices lead to huge misunderstandings in the business world. Just some of these differences include how we manage people, what kind of relationship a boss and a subordinate have, and how we communicate.
Studies conducted by KPMG and Standish reported that 70 percent of projects are failing to meet their goals when it comes to quality, budget, and time — and nearly one quarter (24%) of all projects can be counted as complete failures. These projects are either cancelled outright, or are so off the mark the customer never even uses the finished product.
Frank Ridder, research director at Gartner, has commented that, “[We] found that 55 per cent of global organizations manage their sourcing activities tactically and at an operational level, failing to add a strategic management layer and invest enough in developing critical multisourcing competencies.” In other words, these organizations fail to effectively manage outsourced projects because they don’t plan far enough out, and they don’t take the time to understand the markets they’re developing.
These figures are becoming more and more widely accepted. According to Brandi Moore, a respected consultant on multicultural projects, fully two-thirds of outsourced projects are unsuccessful, and at the same time 65% of Western managers cite culture as their biggest challenge in multinational organizations.
The emerging global economy is creating challenges that Western and Eastern business are just learning how to deal with. As Geert Hofstede, of the Hofstede Institute, aptly wrote, “One of the reasons why so many solutions do not work or cannot be implemented is that differences in thinking among the partners have been ignored.” It’s impossible to build a global organization when each of its parts operates in a cultural vacuum, unaware of how the other parts work.
Hi, I’m Zacharias Beckman, President of Hyrax International. We get a lot of questions about how business culture affects business on a day to day basis.
Sarah, a project manager here in America, is very successful at what she does. She’s got a lot of successful projects under her belt. But right now she’s having problems. It looks like the project that she is working on is going to ship late. There are lot of quality problems with it. It’s over budget, it’s behind schedule, and Sarah is very frustrated. All of the techniques that she’s been using in the past aren’t working for her now. She feels like she is not getting the feedback from her team that she’s used to getting. For example, she proposed some changes to quality assurance system and instead of getting feedbacks, there’re silence, delays and then finally the team agreed to implement what she had proposed.
In a typical Western style, she is expecting very clear communication from her team. Direct, critical feedback on the project and on the proposed changes that she is making. The problem is, her team is in Asia and they don’t think that she knows she is doing. She asks too many questions. She doesn’t demonstrate the authority and the wisdom necessary for the team to feel like she’s in charge of the project. They are not accustomed to this kind of management.
Sarah’s run into a couple of business cultural preferences. She’s experiencing power distance, which is the separation between a boss and a subordinate, and how they ‘re allowed to communicate because of cultural constraints. And she’s also experiencing differences in communication style — the low context, direct communication of the West versus the very high context, rich and subtle communication of the East.
Sarah’s solution in this case is to get business cultural training and understand how her management style differs from what her team is used to and then adapt her management program, her project management technique, to work well with her team is Asia.
Check our website for more information on both of these business cultural preferences. I’ve blogged about them quite a bit in the past.
And if you are managing an International multicultural team, it’s really important to understand how much business cultural preferences will affect your project and your management style. You need to be sure that the project management methods you’re putting into play, are going to work with your multinational team.
If you missed the first part of this six-part series, see: Part 1 of the series, Creating An International Culture Of Success, or see the entire series right here.
I’ve posted a lot about how communication style varies dramatically from one culture to another (including this great infographic on how different cultures negotiate). It’s both very obvious, a clear variation in how we interact, and at the same time deviously subtle in how quickly it can derail an otherwise healthy team and project.
Different Styles Of Communication
Low context cultures, most often associated with Western, industrialized countries, pride themselves on a directness that is unparalleled in other cultures. Lack of subtlety and being “honest and straight-shooting” is the norm. But these cultures end up missing most of the conversation when confronted with high context, rich communication styles.
High context cultures (especially Middle Eastern and Asian, but also South American, some European, and African countries) don’t know how to communicate in this simple, direct style. Confronted with direct, low-context partners, it’s as if 90% of their vocabulary is stripped away. The rich subtlety conveyed in circumstance, timing, silence, body language, story telling, deference, saving face, and tone are missing — leaving behind nothing but blunt, inelegant words (often, to make matters worse, in a second or third language on top of it).
Understanding one another’s communication style and being able to adapt, and interpret signals from both cultures accurately, is critical.
The Global Project Compass™ (introduced in Part 1) identifies the following management disciplines as being most directly affected by communication style:
Continuous Improvement Plan
Segregation of Duties
Project Management Plan
Project Monitoring, Execution, & Control
Change Control & Management
Continuous Improvement Plan
Your continuous improvement plan is absolutely affected by other business cultural preferences, but communication style has a huge impact. Continuous improvement relies on understanding each other without ambiguity. Anything that stands in the way will throw sand into a delicately working machine. Processes like CMMI (the Capability Maturity Model) rely on putting complex, integrated processes into action. Everyone has to understand the process, support it, and pursue it’s objectives.
Segregation of Duties
The Compass also identifies segregation of duties as highly affected by communication style. Clearly defined roles are important in any organization. Segregation of duties is intended to create checks and balances to enforce standards or, in some cases, prevent fraud or malfeasance. One way of looking at this is whether control is unchecked in one person (or one office). A common reason to separate quality assurance, giving it authority on its own, is to support a separate office that has the authority to enforce quality (or at least, stop a project that is not going well).
For this to work, communication lines must be clear. How can quality assurance know how the project is going if there is limited, inaccurate, or unclear communication?
It’s important to note that power distance also deeply affects segregation of duties. The political alignments and often muddied visibility of some organizations create complex, co-dependent relationships. These relationships interfere with the goals of segregating duties.
Project Management, Monitoring, and Change Control
Excellent project management relies on clear communication as well. Across a culturally diverse organization, “clear communication” can mean many things. How does the American manager interpret his Chinese subordinate’s silence, when critical feedback is expected? How will an Indian employee react to the direct communication of a German boss causes him to lose face? Building a project management plan that works well within the multiple, diverse cultural environments of a multinational organization is a challenge.
Knowing how your team, and your company, is doing demands no ambiguity. You’ve got to be able to assess performance accurately. For business performance, that means getting accurate, timely information. To assess your team, you need to understand and assess your team member’s contribution. That means understanding what everyone has to say, in their own subtle or not-so-subtle communication style.
Western-style “360 evaluations,” where employees critically evaluate their peers, subordinates, and superiors, rely on American-style direct communication. When used in other cultural settings the 360 evaluation completely fails. When compared to typical American feedback, French and German respondents more easily criticize, but hold back compliments — so evaluations appear much less positive. In many Asian cultures, the idea of openly criticizing is taboo. Here, evaluations come back with seemingly perfect marks — and that can lead to incorrectly concluding that the Asian office is perfect.
Communication: The Tip Of The Iceberg
Most often, problems between multinational teams get put down to bad communication. It’s true that communication is important. It’s also true that most cross cultural situations have communication barriers (and often serious problems). How well people communicate — or, how poorly your team is communicating — is a very visual indication that there are problems.
Just like an iceberg floating in the ocean, this visual indicator usually means there is more going on beneath the surface. When your team isn’t communicating, it’s time to look for other problems too.
Cover graphic attribution: The artist and visual designer Yang Liu was born in China and lives in Germany since she was 14. By growing up in two very different places with very different traditions she was able to experience the differences between the two cultures first-hand.
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.
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.
Getting past communication problems is one of the first challenges that comes up in global relationship building. In the best case, our cultural mistakes can be amusing, but more often they can give offense and cost us money. Here are few common mistakes to avoid when making your first foray abroad.
Hi, I’m Zacharias Beckman, President of Hyrax International. We coach our clients on five different business cultural preferences that apply around the globe, in different cultures and in different business settings, and each one of these are extremely important. But today, I want to talk about common communication mistakes that people make when going from one culture to another in a business environment.
The first one is assuming that business culture and business practices around the world are more or less the same as they are at home. So for example, westerners tend to be very direct. They get right to the point, they want to dive into business and start negotiating right away. But many Eastern cultures tend to be more conservative. They want to build a relationship first, they want to get to know you, before they decide whether or not they should be doing business with you. So, this is just one example of how an initial meeting, when these two cultures come together, can result in a clash.
Another mistake can be putting too much attention just on the words that have been exchanged. So, what I mean by that is, Westerners might take a discussion and turn it into a contract, and look to that contract as the embodiment of the relationship. What was agreed and signed is how business should be conducted. But this doesn’t really work too well throughout most of the world. The Middle East, Asia, South America — it’s the relationship that’s more important. The contract tends to be a guideline, an initiation of that relationship. But over time the expectation is that the relationship will rule over the contract. Mutual health, mutual well being, is more important. So, what was agreed should change and this can result in a conflict where Westerners tend to be perceived as rigid, whereas other cultures are looking at them wondering, “Well, why aren’t you concerned about how well off we are together, about our future together?”
And the third point I want to mention is: Not looking deeper than just the communication and the words that are being exchanged. Multinational business and cross-cultural leadership are very complicated, because it brings a lot of different business cultural preferences into play. For example, how do different cultures think about time — is the schedule going to rule all? Or it is more important to take your time and make the right decisions and think about the long term?
It’s different from one individual to another. So, when I’m talking about East versus West, these are generalizations and it’s important to realize that generalizations don’t apply to individuals. You’ll meet Easterners that are extremely westernized and you’ll meet Westerners that are extremely easternized. But the important thing to understand is that every company has it’s own culture and just trying to push two companies together usually results in problems.