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.

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.

Surviving The Asian Dinner Ritual

Westerners frequently miss the importance of the Asian dinner ritual. In fact, some Western business cultures, like the United States, keep personal relationships and business relationships so completely separate that the idea of one influencing the other is taboo. In Asia, the lines between business and personal relationships are very different. Misunderstanding this important cultural shift can lead to unrecoverable missteps.

Tips To Survive The Asian Dinner Ritual

Most Asian cultures place tremendous importance on building a strong relationship before entering into business together – or even before discussing business. Relationship building is an important precursor to developing a business relationship, and one of the best ways Asian business people get to know each other is over dinner and drinks.

Unlike in the West, the dinner ritual is not a celebration of a “done deal.” It’s part of the relationship-building in which Chinese, Japanese, and other Asian cultures invest so much importance. This is an opportunity to get to know your hosts, and vice-versa, but it’s definitely not about talking business. Expect to discuss everything except business, from the weather, to your family, to kids and hobbies. If your partners love American baseball or golf, the conversation will definitely go there. Women will often find themselves being faced with topics that are inappropriate in countries such as the United States, like what their plans for raising children are. The more open, honest, and genuine you are, the better to cement trust. This is where personal relationships are built, and business in Asia doesn’t happen without a strong relationship as a foundation.

Chinese Dim Sum in bamboo steamer
Chinese Dim Sum in bamboo steamer

Most of my clients ask about gifts. They are appropriate, usually after signing a business deal or finishing a tough negotiation or project together. As your relationship grows, it’s likely the gift giving will become more expensive. Start with rice wine (bai jiu), a good red wine (from your home region, if you live in a wine producing state), or expensive Chinese or U.S. brand cigarettes (most Chinese professionals drink and smoke). Remember the importance of “face.” If no one else brings a gift, give yours to the host privately so that you don’t embarrass the other dinner guests.

Heavy drinking is very common, but don’t overdo it. I recall one situation where an American employee got a little bit too drunk, and ended up being too straight-forward in his opinions about the project the team was working on. What he said was not complimentary to the team, and the next day I received a formal request to remove him from the project. While dinner parties can be a lot of fun, remember you are still building a relationship. Your host will be finding out who you really are, and decisions about your future business relationship will be based on the personal connection made, or not made. Let your host lead the toasts, and don’t think you’re in a drinking competition. Saying “I’ve had enough” helps your host gain face.

When it comes time to pay the bill, if you’ve been invited your host will pay. Your thanks will be welcome and appreciated. If you do feel the urge to pay, let your host know well ahead of time and avoid fighting over it at the table.

Also, if you have any special dietary requirements, let your host’s assistant know ahead of time. Your host will be very happy to accommodate your requirements, but keep in mind that events are usually planned days in advance, and you may be meeting new faces at dinner. Be considerate, and allow plenty of time to prepare.

Speaking of new faces, be sure to bring plenty of business cards. Exchange of business cards is an important ritual throughout Asia, and not having cards can be construed as disrespectful. When receiving or presenting a card, do it with two hands, thumb and forefinger grasping the corners of the card, and orient the card toward the person receiving it. A bow will often accompany receipt of a card, and you should always take time to read the card. This demonstrates respect for the person presenting it, and gives you the opportunity to find out who at the table is due the most respect.

Above all, be genuine and forthcoming, and get to know your host. By building a strong personal bond, you can look forward to a long and successful business relationship.

How Is Business Culture Affecting Your Business?

A good friend of mine, Chris, told me this fantastic story about his first encounter with his parents-in-law — a story that really drives home the importance of business culture. But if the story is going to have any impact, you’ve got to know Chris a little better.

A Man Cooking In Turkey

Chris is a really smart, well-travelled guy. He’s also pretty straightforward and humble — here’s an example: He was giving me a tour of the new business incubator he was setting up and casually mentioned that he wanted to bring “his bear” in to the break room as part of the decor. I let it pass, not really giving it a second thought. It was some time later that I found out that Chris’ “bear” was in fact a stuffed, formerly live bear that he had personally hunted, killed, skinned, and subsequently ate. It was only then that I found out that bear meat is, apparently, the most delicious meat of all (I have never tried it myself).

Chris is a pretty interesting guy to be around, but not just because of the stories he tells. He’s got a lot of experiences and likes to share them in every way possible. His background was originally in technology, and later he turned this into a strong business sense. And, for this story to make sense, you have to know he also went to culinary school and is an accomplished chef.

So, back to Chris’ story about meeting his new parents-in-law.

Chris met his Middle Eastern wife in the United States, where they also got married. It was a few years into the marriage before an opportunity arose to visit Turkey, where his wife originated. Naturally, Chris and his wife planned to stay with family — doing anything else would have been an unthinkable affront.

After staying with his in-laws for a few days — and, all the while enjoying some incredible home cooked food — Chris wanted to do something nice in return for being welcomed into the family so openly. He had seen how the food was prepared, and with his background he had already learned how to prepare it (partly from training and partly from watching his mother-in-law cook). So, one day he went out to the local market, bought all of the groceries, spices, and meats needed to make a wonderful Turkish meal, and brought it home. Then, he set out to cook a delicious meal for the family, intending to surprise them with his cooking (and hard work) when everyone returned home.

Much to Chris’ surprise, his extended family was absolutely horrified by what he had done. None of the family would touch even a tiny morsel of the dinner he had prepared — in fact, his mother-in-law would not even enter the kitchen. When Chris tried to prepare a plate of food, all of the women left the room! They refused to even sit where they would see him eat the food!

Needless to say, it was quite a shock and disappointment.

GERMANY. Baden-Baden. June 16, 2012, the Feast of the urban area. Women cook traditional Turkish food.
GERMANY. Baden-Baden. June 16, 2012, the Feast of the urban area. Women cook traditional Turkish food.

His wife explained to him, quite simply, telling Chris, “You can’t do that here. You’re a man, in my family’s house, you can’t cook or even help in the kitchen! I know your food is delicious, but nobody will touch it. I will — I’m going to go hide behind the door in my room and eat it because I know it’ll be wonderful, but I can’t let anyone see me eat it!”

Chris had unwittingly fallen victim to culture — to a “social cultural preference.” He had done something taboo in the local culture. There was nothing Chris could do to change the situation. The local culture that dated back thousands of years was set in stone, and was not going to change for Chris’ sake.

Before going on, let me point out that Turkey is a country with great diversity. With over 70 million citizens, it’s bound to be that way! As with many countries, the larger cities tend to be more metropolitan and modern, while towns and villages may be a bit more traditional or old fashioned. Chris’ story is not, of course, indicative of every family culture in Turkey.

Culture, or Business Culture?

Just as every country and every region and every people have social cultural preferences, the corporate world has business cultural preferences. These preferences deal with things like how we communicate, how a subordinate demonstrates respect for a superior, even the way we manage time. These business cultural preferences are deeply ingrained. They can’t be taught, trained, or educated away — it’s not about knowledge, it’s about knowing how to act properly in a particular social environment. Culture is something we start to pick up as a child, and that includes the culture of business in our country.

Chris’ story applies to the business world just as much as the family environment. If you are doing business internationally, in any way, you’ll find this blog interesting. A lot of the content here comes from my book, Building Successful Multinational Business Relationships. My intention in writing the book is to create an awareness of business cultural preferences within your own environment. The most effective way to deal with a foreign culture is to understand our own preferences, and to recognize different preferences as we discover them in other people and other environments. This sensitivity allows us to identify how culture varies, how our preferences don’t match someone else’s preferences. With the right awareness, we can then take action to learn and adapt our behavior, and even our environment.

What Is Culture Really?

So, what is culture, really? The fact is, from our own perspective when talking about our own culture, it won’t sound like “culture” at all. It’s just the way things are.

If you’re American, you’ll believe that everyone has a right to free speech, and believe that anything else is a human rights violation. You’ll know that American football is a national past time of incredible proportion (and you may be surprised that the rest of the world doesn’t really care about it much). You’ll enjoy two or three weeks of vacation each year (if you’re lucky). You will get married for love and think the idea of an arranged marriage is outlandish. You would find it scandalous to have to bribe a government official, and would likely report it as a crime. While you don’t look forward to it, you do rely on a just and reasonably efficient court system. If you are late to an appointment you’ll mutter an excuse if you’re five minutes late, apologize profusely if you’re ten minutes late, and being an hour late would be unthinkable (and probably means you lost the job). When talking with someone you get uncomfortable if they get closer than two feet. After college you rarely go to someone else’s home, and doing so is an invitation-only event (especially if a meal is involved). You think that some foreigners don’t say what they mean, which is just exasperating. You’ll probably hate the idea of using the train system (unless you are lucky enough to live in one of the few cities that has a good one). You find a two-party political system natural. You expect the politicians of both parties to be responsive to business, strong on defense, and concerned with the middle class. You find parliamentary systems (such as Italy’s) inefficient and a little bit comic.

But an American in Turkey can be completely out of place, as we learned from Chris’ visit to his parents-in-law. If you’re Turkish, you know about the concept of freedom of speech but you probably wouldn’t dare talk about it too much. If you’re male, you are likely a futbol fanatic and you support one of the major Turkish teams (and you think it’s silly to use a word like “soccer”). You are blissfully unaware that you have more official and not-so-official vacations than any country in Europe. You expect to marry for love; but the marriage of your parents was very likely arranged by their families (arranged marriage does still take place, particularly in more rural areas). You won’t seriously expect to transact business, or deal with officials, without paying bribes. You dread the court system and know that if you had problems with a customer, landlord, or supplier, taking them to court would be an ordeal that could take months or years. If you are late for an appointment, you’ll mutter an excuse after 30 minutes, and an hour late is still tolerable. You can’t feel comfortable in a conversation if the other person is more than a foot away from you. If a guest drops by, you will gladly serve them tea. When you are negotiating, it’s natural to play convoluted games to get what you want — and in social situations, it’s improper to be too direct. You don’t understand how Americans can get by with a two party system, although “Socialist,” “democratic,” “nationalist,” “republican,” “populist,” “leftist,” and “rightist,” are just vague words for doing approximately the same thing. You think that the situation of the country is hopeless, that none of the countries problems will ever be solved.

This is a small sampling of “culture” at a very high level. This blog delves into business culture, a very specific area that has to do with how people interact and behave in a business context. We’ll examine five of the core business cultural preferences, and hopefully along the way learn how our own culture varies from “their” culture. Understanding this difference is crucial to anyone doing business internationally.

I believe strongly in the power of stories, and so throughout this blog (and my book) you’ll find both informative articles as well as stories. I’ve tried to find stories that express the perspective of a particular culture as it relates to a particular article — and whenever possible, I’ve presented two stories: One from a Western perspective and one from an Eastern perspective. I’ve found it most effective to “walk a mile in the other person’s shoes,” a saying that has been traced back to the Cherokee tribe of Native Americans. Put another way: If two people of the same culture share their experiences abroad, they will likely reinforce each other’s point of view. On the other hand, if two people from different cultures share their experiences, it can be quite enlightening.

I hope you will find both the stories, and the specific knowledge of business cultural preferences, enlightening.