The Cosmopolitan Challenge in the Central Asian States

Why preparation is the key to successful development in the rapidly developing market in the 'Stans'

The former Soviet republics of Central Asia - namely Kazakhstan, Kyrgyzstan, Uzbekistan, Turkmenistan and Tadjikistan - have come a long way in liberalising their economies since becoming independent countries at the start of the 1990s. While for much of the twentieth century, these countries were largely closedoff to trade and commerce with the outside world during their time under central authority directed from Moscow, in the 1990s they have become increasingly open to foreign businessmen.

The massive task of re-constructing their planned Soviet economies to ones based on market institutions, has called for voluminous capital injection into these states and resulted in their governments actively seeking to co-operate with the international business community. Many vital sectors of their economies, including oil and gas, mining, agriculture, telecommunications, power, steel works and tobacco, have been officially open to foreign businessmen for much of the past decade, resulting in an increasingly cosmopolitan business environment.

However, despite this new-found economic cosmopolitism, doing business in Central Asia's former Soviet republics remains a substantially more challenging experience than one may expect in the mature market economies of Europe, North America and other parts of Asia. In particular, from the perspective of business culture, one should appreciate that these are culturally very different societies to those in which we have developed our business acumen. Much of the population of the Central Asian countries hails from a Muslim civilisation that, while containing many of the personality traits from the Middle Eastern and South Asian Islamic societies, has been absorbed by the social values and the business practices which prevailed under the Soviet Union.

The resulting business culture in Central Asia is therefore an interesting hybrid of Soviet formalities and protocol (very similar to that encountered in Russia or Ukraine for example), and Central-Asian Islamic cultural practices - conservative social values, respect for seniority, strong clans and family networks in business, as well as genuine hospitality and often a highly social attitude towards the conduct of business (ie relentless wining and dining as a means of developing the business relationship). Or, to put it in other words, a strong blend of the post-Soviet secular modernism mixed with the deeply entrenched cultural traditions of the Central Asian states. The business experience awaiting the foreigner in these countries can therefore be just as rewarding socially as it can be challenging from the cross-cultural aspects of doing business itself.

It is rather important for the foreign businessman to develop a good relationship with their potential Central Asian partners during this first meeting, as it will set the standard for much of the subsequent meetings to come and will make the locals feel more comfortable in dealing with the visitors. You will find that the local business population does not like to be talked at and promoting such a course of action will quickly lead to a rather burdensome business experience for the foreigner in Central Asia.

When travelling to countries like Uzbekistan or Turkmenistan for example, one will quickly see that the local workforce and business community has little experience with modern business practices equivalent to those long taken for granted in the advanced market economies. This means that the locals are likely to have far less experience in effectively managing a foreign investor's business than one would generally like. However, given their eagerness to learn, and all round good work ethic, it will be far more effective in the long run to persevere with local employees and show patience, rather than getting frustrated when things don't always go as planned. Such gestures on the part of the foreigner will be taken as a sign of "paying your respect", and are often a vital ingredient in developing a harmonious business relationship in Central Asia.

Middle East Issues - Get Contextual

If the word 'contextual' was invented to describe one particular culture, the Arabs would certainly compete with the Chinese. In this article, I wish to go beyond Hall's excellent 'High/Low Context Model' by suggesting that Arabs are highly sensitive to the circumstances that surround any event. They are more likely to show flexibility, be intuitive and be more tolerant of uncertainty in relation to their European counterparts. This, unfortunately, means there are less hard and fast rules in the Arab book of culture.

Inshaalah is a phrase that Muslims and Arabs will use frequently, and it reflects deep-rooted beliefs on pre-destination and fatalism. Literally translated, Inshaalah means God willing. Taken in its everyday use, or abuse, it could mean yes, or no, and it could mean leave it with me, can we talk about this on another occasion or please drop the subject. It is a highly contextual phrase, and its precise meaning will depend on the request or issue being discussed, the relationships, power distance, and naturally body language and intonation. It is thus no wonder that it defeats most newcomers!

Do's and taboos is another area where there are few absolute truths in the Arab culture. Take for example common advice given to newcomers. This tends to urge them to accept coffee offered by their Arab hosts, to shake hands with Arabs, to engage in pleasantries and small talk, to show patience before launching into business, and to avoid paying personal compliments. Whilst generally true, there are many circumstances where shaking hands becomes impractical or undesirable, paying compliments is expected and refusing coffee is used as a sign of dissatisfaction. In this respect, relationships, gender, age and power distance are some of the factors that can play havoc in defining correct and incorrect behaviour.

Contracts and procedures represent the ultimate relative tools in the Arab culture. It is difficult to ignore the fact that the Arab motto runs along the lines of 'for our friends we interpret the law, and for our enemies we apply the law'. Words such as Waasta and Ma'rifa which mean mediation tend to be picked up by newcomers within a few weeks of arriving.

Perhaps, in conclusion, there is a hard and fast rule in the Arab book of culture - always consider the context of your words and actions.

Original article from http://www.intercultural-training.co.uk/articles/middle_east/middle_east_issues.asp

Doing Business in Morocco

Morocco is the closest African country to Europe separated from the Spanish market and its 60 million tourists by a mere 9 miles through the straits of Gibraltar (a stone through from Tangiers).

Despite its association agreement and its formal application to join the European Community, Morocco is a North African country, an Arab and Islamic state. If Arabic and English are the common business languages in the Middle East, French is a must for doing business in Morocco. Arabic is the official language followed in terms of usage by Berber dialects, Spanish in the North and South . The use of English is on the increase in manufacturing and exporting companies, the Hotel industry, universities and private schools.

Compared to its North African neighbours, Morocco has a more diversified economy with tremendous untapped potential and prospects for business in a number of fields (Agribusiness, fisheries, mining exploration, tourism, export oriented manufacturing, infrastructure development).

France is still Morocco's main client and supplier. However, instead of going through a French or Belgian French speaking agent, British companies are now flying direct from UK airports to Tangiers, Casablanca, Marrakech (the beloved city of Sir Winston Churchill) or Agadir ( Morocco's French Riviera and second largest economic region after Rabat/Casablanca).
As an investor, your Moroccan hosts and partners will invest in supplying the necessary framework for communication. They will either speak English or provide an interpreter.

However if your aim is pure export of goods or services to Morocco ( you may already have dealings with France), you're advised to prepare yourself and be accompanied by a private or public export/consultant/interpreter who could guide you into the market both before, during and most importantly after the market visits.

The public sector projects are important but the private sector is very active in commercial and industrial activities. In the clothing sector alone, over 50 British manufacturers are operating from Morocco for re-exports to UK, Europe and world markets.

Kacem Debar speaks Arabic, French and English From 1982-1985 he was Economic Counsellor (Export Promoter) at the Moroccan Embassy in London. At present he is a Markeing and Business Consultant specialising in two way trade investments between the UK/France/Morocco and North Africa and other Arab and French speaking countries.

Doing Business in Kuwait - Be Yourself

Dr Jehad Al-Omari, Middle East Consultant, provides some important advice for expatriates and frequent business travellers.

One of the first things which strikes you when you arrive at Kuwait International Airport is that sense of modernity. You will be right in thinking that you are stepping into a highly prosperous society where only the best technology will do. Wander around the city of Kuwait, and you will be impressed by the high rise buildings, modern office blocks and electronic shops selling the latest technology on offer.

Investigate further, and you will realise that apart from being an oil producing country, Kuwait city is one of the oldest trading nations in the Gulf region, has the longest democratic tradition, and where freedom of speech is part of everyday life, whether you are sitting in a Diwanych or reading one of Kuwait's many daily newspapers.

Yet, you must dig deeper to realise behind all of this there is a deep-rooted pride in history, Islam, traditions, family and culture. Kuwait's modernity and outlook derives from a rich synthesis of the old and new, and the desire to acquire the best the world can offer while maintaining a firm grip on tradition. A Kuwaiti official once commented to a Western journalist that in buying Western-made fridges he does not have to eat souffles. Kuwaitis have gone a long way in developing their oil, investment and trading sectors, without compromising their family values. Putting one's parents in old people's homes is perceived as being inhumane and barbaric.
Talk to Kuwaiti managers and professionals and you would soon recognise that they are the product of a sophisticated educational system which ranks amongst the best in the Arab world. You will certainly come across more Kuwaiti managers with degrees behind them than you would in the UK - that is assuming that they have not done a second degree somewhere in the UK or USA. You will again be right to relax, and assume that the majority can speak your language, metaphorically speaking.

However, you must not drop your guard completely. Business and business dealings are not exempt from this blend of old and new. Great and lavish hospitality to guests is pursued with the same vigour as productivity and efficiency. Open door policy and consultation go hand in hand with delegation and empowerment. Loyalty to superiors and clients will override systems and procedures. Timing and confrontation avoidance remain as far more important than time and results.

In other words, "Business is Personal", and you cannot afford to ignore the subtleties of this simple statement. Your ability to engage in small talk, to carry out favours, to develop personal relationships, to avoid confrontations and to cultivate loyalty will all convince you that the most important thing you will be selling to the Kuwaitis is yourself.

Whether you are thinking of going to Kuwait on business for one week, or whether you intend to live and work there for the next three years, you will need a good deal of preparation.
Looking up books from libraries and information centres is a good starting point, but a more effective way would be to attend a specialised briefing where you will meet both expatriate and Arab experts who will be able to answer your queries, provide you with practical tips, and point you in the right direction.

Farnham Castle International Briefing Centre offers regular programmes for both expatriates and frequent business travellers on a scheduled and customised basis. Intensive language tuition in Arabic is also available.

Developing the multi-cultural organisation: managing diversity or respecting differences?

Face the Challenge

Today's business and service organisations face a three-fold challenge. With management and employees of a variety of national and cultural backgrounds, they must:
1 enable this heterogeneous workforce to work together harmoniously toward their common goals;
2 maximise the contribution of each member of what is in fact a large team;
3 ensure fair treatment for all, irrespective of background.

Meeting this challenge demands systematic efforts on the part of these organisations, as many of them have come to realise. Whether the multi-cultural character of the company arises from its internationally mobile workforce and its local operations in various countries, or from the mixed backgrounds of a workforce in a single location, the organisation must address this diversity if it is to be successful.

DEFENSIVE OR DEVELOPMENTAL?
Every organisation has a strategic choice to make in how it will face this issue, between a fundamentally defensive approach, and one that is developmental in nature and effect.
An organisation which adopts the defensive approach treats cultural differences as hazards - a series of weak links between people in which there is great potential for misunderstanding, conflict, mistrust and even resentment. It assumes at the start that certain people are inherently culturally insensitive to others. Handling 'cultural diversity' therefore means avoiding giving offence to groups or individuals, preventing harassment, and managing grievances. It may have an implicit political objective as well, to reduce the alleged dominance of one 'culture' or another.
The developmental approach, on the other hand, first of all sees cultural differences for what they are - potentially different values, assumptions, expectations, and behaviour which people bring to business as a result of their differing backgrounds. As expressed by one prominent writer in the field, culture is "the way in which a group of people solves problems" (Trompenaars). Moreover, the developmental approach recognises that these collective tendencies reveal themselves as individual differences. Members of a team are not there to represent a 'culture' or particular ethnic group - they represent themselves.
A
CKNOWLEDGING THE DIFFERENCE
In this way, handling cultural differences means recognising
1 that these differences can have a significant impact on how people of different national or ethnic backgrounds approach the day-to-day issues of business and professional life, and
2 that people want those differences, where they exist, to be acknowledged. The developmental approach begins with the more positive assumption that while people may sometimes be unaware of these differences, they are not automatically insensitive to them.

The outcome of the developmental approach is a recognition of these different perspectives as alternative ways of handling particular situations. Cultural differences are no longer hazards - they are opportunities to strengthen the organisation through shared learning, better communication, and new perspectives.

How can one tell whether an organisation has adopted the defensive or the developmental approach? After all, any organisation can use terms such as 'diversity,' 'culture,' 'differences,' or even 'inclusiveness' to its general goals in this area, whatever the reality.

For a start, the defensive approach often arises as a reaction to grievances or conflicts. The organisation may define it through policies, procedures, and public relations statements, and make it visible through initiatives and 'programmes.' 'Training' is preoccupied with reducing insensitivity, often by trying to induce certain subjects to admit how insensitive they are. To the extent that such efforts are presented positively (or in the words of one company's website, "leverage[d] for competitive advantage"), it is as a question of equal employment opportunity.

THE RIGHT ROUTE
Farnham Castle helps its clients follow a developmental route, which assumes a very different form. It often starts at a local level, on a practical basis, with an individual's or a team's efforts to improve the way people work together, or to prepare for wider international responsibilities. It tends not to be fixed in policy or procedure, but instead is most often driven by business needs and actual situations faced by people. Training is interactive, involving exchanges of impressions, experiences, and problems amongst learners. It recognises that perceived differences are as important as 'real' ones, for it is our perceptions of others that give rise to our reactions and judgements.

People learning to handle cultural differences will learn a great deal when they become aware of how they are culturally viewed by others. In addition to awareness, informational briefings increase people's knowledge of possible differences between cultures. That insight in turn helps them see how apparently 'strange' behaviour has its own cultural 'logic,' as the way in which a group of people have, as we said, solved universal problems. With increased mutual awareness and knowledge, mistrust tends to evaporate and questions of cultural 'dominance' become irrelevant.

PRACTICAL BENEFITS
The practical benefits of the developmental approach are seen in their effects on management style and on the way a team works together. 'Cultural' differences are now seen as individual differences arising out of people's backgrounds. These various points of view, openly communicated, represent alternatives and choices available to the group for consideration and negotiation. A greater willingness to talk directly about differences helps build trust, facilitates decision-making and opens the way, where appropriate, to compromise.

The developmental approach, as we have labelled it, needs sound leadership if it is to take root. It will be nourished by the resources of an organisation such as Farnham Castle, which is able to offer (1) collaborative training to raise awareness and increase knowledge, (2) extensive expertise in various business cultures and in the challenges and goals of international business. The developmental approach is further enhanced by training that strengthens the skills required to handle difficult situations and to communicate effectively in intercultural settings.

DIVERSITY TRULY VALUED
None of this, of course, is to imply that organisations should not concern themselves with the indispensable goals of providing a working environment that is free of 'harassment' and discrimination, and of ensuring equal career opportunities for all. We would simply say, however, that truly 'valuing diversity' means valuing the contributions that 'diverse' individuals can make. A developmental, rather than a purely defensive, approach to dealing with cultural differences will help make that a reality.

Article by Robert Day, a senior consultant for Farnham Castle specialising in effective communication/negotiation, team development, and cross-cultural issues in international business

The Middle East - Business Culture and Practices

The countries of the Middle East cover a very large geographic area from Iraq and Syria through the Arabian peninsula and the countries of North Africa to the shores of the Atlantic.
The affluence of the oil based Gulf States and Saudi Arabia contrasts with some of the less economically endowed and highly populated countries of the Arab nation.

Since the oil boom of the 70's world business has tended to concentrate on the massive development programmes of the oil rich Gulf States of the Arabian peninsula, but now consumerism is also finding its place in densely populated countries such as Egypt. Mass markets already attract the attention of the world's global Companies, many of whom have established bases in these territories. Other businesses follow to extend their potential trade in these areas.
The Arabs of the Middle East have been successful traders for centuries, long before the discovery of oil. One will find willing and knowledgeable partners, but some study of the necessities of doing business within the Arab culture may smooth the path to success.

Business culture, practices and etiquette
The business culture tends to have a greater social element in its characteristics than its western counterpart. This is evidenced by the warmth of welcome in all forms of contact that is always provided and the expectation of similar response.

No Arab businessman would dream of opening contact in any form without an exchange of pleasantries, before settling down to the matters for discussion.

The Arab businessman is essentially a trader and whilst he may not possess certain specific technical sophistication that his western counterpart may be offering, he will be financially astute and additionally a quick learner.

He will prefer to do business with someone he likes, to the extent that he may choose to refuse possibly lucrative results, if he finds the business contact unfavourable. Conversely, one may be fortunate to find a long term business and personal friend.

Historically the people of the Gulf, in particular, are tribal. As such there will be particular alliances, some geographically far reaching. This can be particularly useful in building your business intelligence of contacts to make and perhaps to avoid. This type of knowledge when offered can provide opportunity.

A businessman, foreign to the region, will be expected to know his proposition thoroughly. Should any omissions be discovered in contractual conditions the Arab businessman will be expert in finding these to his advantage and will exploit loopholes - believing these to be 'fair game'.

On his part he will act within the letter of such arrangements and fulfil his obligations.

The Arab will always understand the financial element, which is of course the end objective.

The Arab cannot say no directly - so it is vital to listen carefully to responses to your proposition, to avoid misunderstandings.

Business and social etiquette demands shaking hands on greeting and leaving. A few words of greeting in Arabic and in understanding the responses will be greatly appreciated.

Refreshments, always offered, should always be accepted. The one occasion where this may be refused is out of deference to the host who will be fasting in the month of Ramadan.

Preparing for your trip
Obviously in the vast majority of cases appointments will be made prior to your journey. There may be some flexibility in timings since Arabs tend to be fatalistic by nature and not hold to exact arrangements.

An in-date passport is obviously necessary.

In certain States it may be necessary to have received an invitation from your business host/sponsor before the appropriate visa is granted. In any event it is vital to understand the entry requirements, particularly in the case of Saudi Arabia and many other nations.

Generally preventive health requirements such as inoculations are not compulsory, except in the case of obtaining residence/work permits.

If during your visit you intend to make presentations requiring audio/visual aids, it will be necessary to establish that your host can provide appropriate facilities.

Comprehensive preparation enabling clarity of your objectives should be evident and the possession of the facts to answer searching questions, available.

Successful meetings
Having done one's homework on your 'target' will ensure that one is addressing a potential success. It is well to remember that the Arab does not refuse to meet someone, this is not in his culture of hospitality - so valuable time could be wasted.

Sociability, cordiality, respect and a non-patronising attitude will go far in developing a successful conclusion. Aggression, the hard-sell, blasphemy and arrogance are very distinct negatives.
Good preparation of your proposition, experience and knowledge of your subject will be well received. Listen carefully and observe the non-verbals as well.

Having a business card with two-sided printing of your name and Company, together with communication details in your language and Arabic, is very useful. The Arabic should be a phonetic pronunciation.

Women in business
With the exception of Saudi Arabia, where officially women are not involved for business, women are generally well accepted in the business world.

Arguably they have to exhibit their business skills and acumen to a greater degree than their male counterpart, in order to be successful in the Arab world.

Women will be observed and encountered in all types of business endeavours as their traditional role of family nurturer extends beyond the household.

Dress code
Formal meetings call for formal dress. Lightweight suits, ties etc. Standard meetings are relatively informal requiring a business shirt and tie.

The Arab businessman in his native 'thobe' will always look formal and immaculate. Always err towards the formal, sloppiness will be construed as disrespectful.

Corporate hospitality
Entertaining in its various forms is widely used in business life, whether it be business lunches or dinners or more formal presentations.

The Arab believes that having shared one's food with another brings them closer together.

The difficulty arises in whether to provide alcohol on these occasions. A devout Muslim will no doubt be offended in the presence of consumption of alcohol. Others will not object and may themselves partake. Homework is required - if in doubt don't provide or offer alcohol.

Arab society is a 'gifting' society and in formal conferences it is standard practice to offer a small appropriate gift on guests' departure.

Conclusion
The Arab culture is complex and intricate and its understanding can be very rewarding. This brief view of fundamentals cannot give full justice to a fascinating way of life, but may open the doorway to seek further exploration.

Farnham Castle/Robert Hughes
Robert Hughes worked in the Gulf States and Saudi Arabia continuously for the past twenty years. During this time he has had experience at top management level for some of the world's leading advertising and marketing agencies and their clientele, most recently J. Walter Thompson and their Unilever business. From his base on the Arabian Peninsula, his remit latterly also extended to Syria, Lebanon, Jordan and onwards to Egypt. His book 'Living & Working in the Middle East' was published in 2002.

South Asia - Introduction to Business Culture and Protocol

South Asia contains about a quarter of the world's population and any way you cut the demographics it is a large, growing and important market, with the new knowledge- based industries - such as software - up there amongst the world's best. And it is by no means a difficult market for us. Look at what we have going for us. English is the language of business; our laws and legal systems are substantially the same. Indeed the way we go about our daily work is very similar and you will find both women and men in senior positions in both industry and politics. We have a common heritage in much that we do and love - including cricket!

So how do you prepare for a first visit to this vast subcontinent? Well - and much of this is self-evident- the first thing to do is to satisfy yourself that there is a market for your product or service. South Asia is amongst the most price competitive markets in the world, so try to do some research on competitive local pricing before you go - or put it high on the list of things to do in your visit. There is help at hand in doing this pre-visit research including Trade Partners UK where a variety of subsidised services are available to help you- for instance market information reports which amongst other things assess the market for your product or service, review competition and profile potential agents, distributors, partners and so on together with names of professional advisers you might want to consult. Do some homework on the area too. Give some thought to your market entry strategy. Is it to find an agent or distributor? A joint venture partner or what?

Think carefully about your itinerary. Try to be sure you are meeting decision makers - not always as easy at it sounds. Check whether there are any national or local holidays during your trip and be sure to leave enough time between meetings to get from one to another. Crossing some of the big cities can take literally hours. Taxis are safe but can and do get lost! Better to ask for a hotel car.

What clothes to pack? For business meetings you won't go wrong with a suit in the winter months and a short sleeved shirt and tie in the very hot summer months. Speak to a local travel clinic and seek advice on the appropriate vaccinations. Get a visa. Take a few small gifts with you. Corporate "giveaways" for use at the end of business meetings and a few pieces of china, or the like, as gifts if you are invited in to your host's home.

Know your product or service inside out and those of your world-wide competitors' too. The local businessmen are well travelled and will almost certainly know your competitors - particularly their prices. Take plenty of company and product literature with you and a good supply of business cards.

In doing business you are likely to meet with any or all of the following management styles:
• The business house and which is something of a hang over from the past when family driven conglomerates thrived behind the wall of import protection and on cosy political friendships. They tend to be autocratic and, to us, seem disorganised.
• The subsidiary or associate of a MNC with local publicly quoted shareholdings which was a means of complying with the (then) rules limiting foreign ownership. They are professionally managed with a good understanding of marketing and strong local brands.
• The service companies which are typified by the young, successful, often US focused, software companies. World class in both their output and corporate governance and many say are the bow wave of India emerging as a superpower in the world's knowledge based industries.
• The public sector is still very much a dominant and often a monopoly force throughout South Asia. It tends to be inefficient; bureaucratic, over manned and heavily unionised.

What can you expect at your first meeting? Don't be surprised or put off by what you have seen on your way to the meeting nor the building or offices you have arrived at. Remember all is not always what it seems. Time keeping and time management are not always what we would want. And your meeting may suffer a number of interruptions. You will be greeted with hospitality and drink lots of tea before you leave. Be ready for an opening conversation on anything but business and let your host lead it towards business. Remember you are hopefully starting to build a relationship - which is important to the local businessman. At the end of the meeting sum up, check there is a common understanding and seek agreement to what you have discussed and decided. Then send written confirmation when you return to your home office. Local businessmen love "MOU's" - memorandum of understanding.

During your meeting seek to find out who is the real decision-maker. Don't be surprised if after a while you are invited to meet the head of the family. He or she may very well be the real decision-maker and the one who approves the deal. Don't be surprised too if he or she tries to shave prices further as part of the approval. Do not be disappointed if your first meeting fails to reach the decisions you had hoped for. Patience is a virtue and nowhere is this more true or necessary than in South Asia. The decision making process can take several meetings and involve several people. And often bureaucracy rears its head to delay and occasionally prevent decisions.

Age and "keeping face" are important factors to remember. Age demands respect and in many companies is part of the hierarchy. Forms of address vary widely from "Sir" or "Madam" through to first names from the very first meeting. Some of the older companies have a formal style and others, particularly the newer ones, are both informal in their style and dress codes. You just have to feel your way on this. The fear of losing face restricts some people from contributing to a discussion. Drawing out comment from people can sometimes be tough but it is worth working at. The good and much used words "No problem" usually means quite the opposite, and is a warning to probe politely!

Meetings, particularly the more serious ones may often conclude or extend into an invitation to a lunch or dinner and which as the relationship develops may well be to meet the family at home.
When you return to your home office document and send your understanding, decisions and next steps to the companies you have met. Remember that whilst they may have thought you were the proverbial answer to the maiden's prayers whilst you were with them, out of sight is also out of mind. So you will almost certainly have to chase the promised actions. Be patient and don't be surprised by surprises!

Farnham Castle/Julian Stretch

Julian Stretch OBE is a trade and investment adviser to a number of companies including the South Asia unit of the UK's Department of Trade & Industry. From 1995 to 1999 he was Director of International Operations for a British domestic appliance manufacturer. Prior to that he spent 25 years with Rank Xerox Ltd including managing the company's operations in South Asia, Eastern Europe, Russia and the Middle East. He established Rank Xerox in India where he set up a manufacturing and marketing joint venture. From 1988 to 1992 he was chairman of the then British Overseas Trade Board's area advisory group for South Asia. He was awarded the OBE for services to exports in 1992.

Working abroad: Cultural misunderstanding, or just being rude?

Working abroad: Cultural misunderstanding, or just being rude?

The British at Work and Play

Introduction to Successful Living and Working in Britain

"Cheerio!, Bloke, Tube, Boxing Day, Bangers and Mash, It's my round, What's your poison? and Do you fancy a Chinese later?"

How many of the above expressions would you understand if you were newly arrived in Britain? The British use so many colloquial or slang expressions in their everyday speech without realising how incomprehensible these words can be to a foreigner.

How about the working environment - business practices, meeting and negotiation skills, communication styles, formality and informality, management structures and of course British humour!

These are things that the British all take so much for granted but to someone newly arrived in Britain they can be confusing and even frightening. Even those with a reasonable command of the English language find themselves puzzled and out of their depth on both a personal and working level.

The 'Welcome to Britain' briefings and intensive language tuition offered here at Farnham Castle, provides valuable support at the crucial time, just after arriving in the UK. The programmes cover all aspects of living and working effectively, helping avoid many difficulties and misunderstandings and making the settling in period more enjoyable and usually considerably shorter allowing the employee to become more effective more quickly.

Effective communication in business essential. Very often language tuition is considered unnecessary for those who speak some English with the belief that they will 'pick it up as they go along'. The first few weeks of any assignment is a crucial period when individuals need to acquire an assimilate vital information and if the language skill is not of a high enough standard then this time could be wasted.

Check out the details of our Britain briefings and Intensive language tuition on this web site or contact our sales and marketing department on +44 (0)1252 720415

Singapore

'A great commercial emporium' was how Sir Stamford Raffles described Singapore in the early years of its founding. Today, some 180 years later, those words still epitomise modern Singapore, and for the modern entrepreneur it offers opportunities in all major business sectors. Its 3 million citizens, of which 78% are Chinese, 14% Malay and 7% Indian, plus a further 1 million foreign citizens and expatriates, create a truly multicultural society.

In Singapore, as in the rest of Asia, establishing relationships is the key to starting and maintaining all business ventures. Singaporeans are well used to dealing with foreigners and are familiar with other cultural styles. However, you will still be expected to show an understanding of their culture, and tolerance and self-control are an important asset in achieving this.

The Singapore business scene is very professional and courteous, and you will be expected to be well briefed and knowledgeable on the market and your potential business partners, and you will find that your Singaporean colleagues are equally well informed. Meetings tend to be more structured and less confrontational, and conducting oneself in a calm and orderly manner will help to establish credibility. Negotiating styles differ from those in Europe and avoiding direct disagreement and being polite and courteous at all times is essential. The question of 'face' is never easy for Westerners to fully understand, but its importance throughout Asia must never be underestimated.

Singapore has 4 official languages - Chinese (Mandarin), Malay, Tamil and English, but English is the language of administration, and you will find 95% of Singaporeans you are likely to meet will speak and understand English well. However, the entrepreneur who can converse in a local language will always be at an advantage, and a knowledge of Mandarin, Cantonese or Malay will always set you above the competition and will help to cement personal relationships.

The authoritarian stance of government makes for a well disciplined people and foreigners need to portray a similar attitude when doing business. This is facilitated by clear cut and well regulated controls on external trade which make it a pleasure doing business with this modern, industrial nation at the forefront of 21st century technology.

Nick Curtis has spent 20 years as an expatriate living and working in Asia, Africa, Europe and South America. He has lived for four years in Indonesia and l0 years in Singapore working in multi-national companies in sales and marketing. Whilst based in Asia he also had extensive business travel in Hong Kong, Japan, Thailand, Malaysia, Pakistan, India, Bangladesh and Australia. His wife, Lindi, is Chinese Singaporean.

Building an e-team what are the issues in remote global teamwork?

These days many of us have the opportunity to work in teams with colleagues from different national backgrounds, dispersed across the globe in different locations. With the globalisation of business activities, these remote international teams have become more necessary, and with the availability of electronic means of communication, more feasible. While the team benefits from the skills, information, and output which people at each location contribute; building and sustaining at long distance the co-operation and effective communication which an "e-team" needs presents certain problems.

What are some of the challenges which people have encountered so far in e-teamwork?

Difficulties in Keeping Focused
Members of a remote team are often drawn away from team priorities by local needs and local management. Furthermore, a remote team, by virtue of its dispersion, may have little visibility to the rest of the organisation, making it difficult to obtain the support and resources it needs from outside.

"Out of Sight, Out of Mind?" - or Out of Sight, Out of Control?
All teams need the right balance of good relationships between the members and the discipline of procedures and systems. But remoteness from one another, the availability of e-mail and the telephone notwithstanding, may cause the team leader or its members to feel that they do not have sufficient support or back-up. They may also become anxious about progress, schedules, work in progress and other necessary information. The tools are there, of course, but the easy exchanges of information in spontaneous office conversation with other team members are not possible. The team have to work much harder to keep each other informed.

Dealing with Changes to the Team
A dispersed multi-national team may find it difficult to integrate a new team member in a remote location. It will be difficult for him or her to "put faces to e-mail addressees" and to establish the good personal relationships that supply much of the 'glue' to a remote team. Changes in team goals, roles and responsibilities require extra effort at communication, and the way the team works together will change as a result.

How Will the Team Work?
Individuals differ in these areas, but many of these can also be culturally based differences. In a companion article in this issue, we look at issues Europeans face in working with Americans in global teams. Europeans differ from each other and, of course, team members from elsewhere in the world may have different values and expectations as well. While any multi-national team faces this possibility, remote teams run the further risk that in the absence of close relationships, members may invoke national stereotypes, usually negative, when someone overseas does not appear to be as responsive as they might wish.

E-mail and Remote Conferences
These are what hold the team together, and allow it to work, but there are pitfalls. Language ability or culturally based differences and preferences in communication style may mean that some members may find e-mail awkward, too informal, or unsuited for long open exchanges.

Tele-conferences and video-conferences allow the team to bring voices and faces together, but to a greater degree than a face-to-face group meeting, these events require strong discussion management and facilitation skills which team members may not possess.

We are all responsible

Organisations of the 21st century can no longer limit themselves to producing and marketing products or services without any concerns for the impact they have on society. Philippe Nitzer, a senior intercultural specialist at Farnham Castle, examines one aspect of the increasing role of the corporate body in society at large

Shareholder and investment groups are now looking to companies to be accountable for fair and equitable working environments for staff. The published lists of 'best places to work' can be a determining factor in investment decisions since studies show a positive correlation between socially responsible workplace programmes and positive financial results.

Employees also recognise that they can have a role promoting change in the workplace. An increasing number of employers are responding to affinity groups covering a wide range of employee interests.

If they want to be trusted by their customers, employees and the public at large, companies are realising they have to be more socially responsible. With the rapid growth of multiculturalism in Britain, a key issue of Corporate Social Responsibility (CSR) which needs to be addressed is the effective integration of ethnic minorities in the workplace and the community. The publicity surrounding the increasing numbers of overseas nurses arriving in Britain to work in the NHS is a good example.

Demographic changes
The demographic changes of the 50s and 70s have left many British companies struggling to deal with the problem themselves. Many organisations have played a passive role in this integration process by staying just within the legal boundaries and are now experiencing difficulties in that area.

A lack of consideration of differences
One of the major reasons behind these integration problems is the lack of awareness and consideration for cultural differences. People from different cultural backgrounds have different sets of norms, different sets of values and different assumptions. This means that we all have different ways of reacting to events, different ways of communicating and different behaviours. We judge others from our own frame of reference and tend to think that 'our way is the right way'.

In a multicultural workforce, this can lead to misinterpretation, misunderstanding, incomprehension, mistrust and disrespect. As a result, rather than getting closer, people distance themselves from those they consider different, groups are formed on the basis of commonalities, whether it is ethnicity, colour, language etc and 'departmental ghettos' start to appear. Often, there are rivalries and tensions. In some instances, these situations can degenerate into discrimination, bullying or racist behaviours.

The law is not enough
Staying within the letter of the law is not enough for organisations experiencing these situations. It is imperative for them to resolve these issues if they want to retain a stable and productive workforce and be regarded as good 'corporate citizens'. Organisations can be more socially responsible by contributing to a smooth cultural integration of ethnic minorities into the workforce.

Being more socially responsible
Integration does not mean imposing one way. It means harmonising and synergizing differences. Having a clear and unbiased understanding of the context is the first step toward formulating proper integration strategies.

The second step is to develop cultural awareness. Being open to differences, understanding and respecting the other's cultural background are the key elements in preparing the ground for integration.

The third step is to build or rebuild trust.

Finally, only when trust has been demonstrated from all sides, can solutions be discussed. It is this step where different norms and values are reconciled and tangible and intangible elements of integration are defined. Building shared ownership of the solutions is at that stage essential to reinforce trust and guarantee implementation.

These steps can take different forms; for example, interviews with the various groups involved for step one, training programmes at the levels concerned in the organisation for step two and facilitated workshops for steps three and four, involving all concerned or a limited number of influential representatives of each group, who can then intervene as mentors to their members.
Being proactive in the integration process of ethnic minorities is a corporate social duty which can strongly impact on the community and contribute to a much more committed workforce.
During the last few months, Farnham Castle has been working with a number of clients in the development of programmes, using a training approach normally associated with supporting the integration of home and foreign workforces, to address the growing issue of multicultural tension within the domestic workforce. Because of the sensitivity of the issue, each programme has to be very carefully designed and often involves a number of programmes, each with a different perspective at each level.

The need to exercise corporate social responsibility is evolving in many different guises. In light of The Department of Trade and Industry's recently issued consultation paper entitled 'Towards Equality and Diversity', pre-empting proposed legislative amendments to comply with EU legislation, perhaps this one in particular needs our attention now.

http://www.intercultural-training.co.uk/
social responsiblity
intercultural

Going on an international assignment? - What about the family's needs?

The opportunity of an overseas assignment can be an enriching experience enabling personal as well as professional development. This of course necessitates change which will inevitably present some challenges as well as opportunities. Adequate preparation for change is essential to ensure a smooth transition and also requires good communication.

Open and honest communication is necessary right from the beginning. From the skills used in informing the employee of the international opportunity through to how it is discussed with the partner. Just as important also is how children and extended family receive the news. Without good communication there will not be the necessary support to enable greater adaptability and less vulnerability to stress.

Changes will take place within the interpersonal relationships of the couple and the family. Living away from easy access to familiar sources of support, individuals often become more dependent on each other. There is the opportunity to get to know each other in a different way and the possibility to grow and develop a special bond together. This is dependent on open communication which means firstly negotiating and making time for each other. Healthy communication has to be a two-way process of expressing emotions and feeling heard and accepted.

Solutions may not always be necessary. Making time for each other to share feelings and patient understanding may be all that is required.

Children need communication as well. They need to be prepared and to be told what is happening and as early as possible. This includes children as young as two years as they are at the life-stage of beginning to develop attachments and need security. They have to be able to say goodbye to friends and family left behind and to be reassured that they will see each other again. It is also very important at this time of change to maintain a routine of familiarity.
Communicating with children needs to be as concrete as possible, telling them the reason according to their developmental age why the family are moving and where they are moving to. Reassurance and honest replies to questions, as well as making time for cuddles, hugs and being close, all play a part. Children should be encouraged to express their feelings and space and time provided for children to talk and to be listened to when they do.

With older children there is also a need to be aware of each others feelings and to encourage expression of feelings as well as sharing in and giving each other support. Adjustment takes time. This is normal. With patience, understanding and good communication the family will have grown together and shared in a very special experience.

Cultural adaptation, living conditions including children's health, welfare and education and the opportunity to discuss family experiences first-hand can be included within the highly successful customised family briefings at Farnham Castle and make a valuable input into this important transitional period.

Cracking the Euro Code

A guide to help you understand the basics of Western European business cultures
The continued integration within the European Union and the introduction of the euro will accelerate the growth of joint ventures and partnerships within its territory and across its borders. However, many of these costly and time-consuming initiatives fail to deliver the desired results because the companies involved are not prepared for the cultural differences and distinct business styles in the new markets.

Culture, often derided as that 'soft, mushy stuff', is all too real. The ability to communicate with people from other cultures and achieve what you want from meetings and negotiations are key skills in a global economy. Business winners in the new Europe will be those who recognise and understand cultural differences, then work round them by getting the best from each.

What do we mean by 'culture'?
Culture is the framework that provides people with their identity and helps them distinguish one group of people from another. Culture establishes a unique set of formal and informal rules for how we think, and behave and what we assume to be true. Each nation has values and beliefs which are passed from generation to generation and shape our social and business behaviour.

How to prepare for your trip
Many people do not prepare for the international meetings and negotiations they will have to face. Whether in Paris or Tokyo, they simply conduct themselves as they would at home. We recommend that you find out as much as possible about the country you are going to. It might be a good investment to do some language training or attend a specific country briefing at Farnham Castle.

One of the most important things to remember is that there is not necessarily one right way of doing things. The answer is to understand and respect cultural differences. Empathy is the key.

Western European Business Cultures, Practices and Etiquette
Our Western European neighbours have solid education systems and management is usually educated to university level. Academic titles are not generally important except in Germany and Austria. Be sure you get the name and title right.

In Germany, companies are quite hierarchical and task-orientated with a structured approach. Punctuality is highly valued and seen as a sign of respect. Business culture is relatively formal, communication is direct and German managers speak their mind. Successful meetings follow a clear agenda and items are dealt with in a decisive and clear manner. Avoid interrupting unless you need urgent clarification. Germans are willing to take decisions within meetings but they tend to be cautious, so it is important to be factual, provide sound information and come well prepared. Do not use humour during meetings ‰ tell them your funny stories afterwards.
In France the business culture is very hierarchical and the French take a flexible and dynamic approach. Punctuality is valued, but on social occasions one is expected to turn up 10 to 15 minutes late. The priority is to establish a relationship, then get on with the tasks.
Communication is polite, relatively formal and the approach is intellectual, indirect and sophisticated. To the French, preparation means being able to conduct a coherent argument founded on faultless logic and they are comfortable with robust and direct exchanges. Meetings often consist of ongoing discussions that do not always reach a conclusion. There is much less horizontal exchange of information than in British firms. The French often see meetings as a place to develop ideas, for the bosses' subsequent approval. Consequently, managers are less willing to take risks. If invited to lunch or dinner avoid raising issues regarding your meeting until the end of the meal.

In the Netherlands and Scandinavia hierarchical systems are flat and boundaries between management levels are flexible. People will cut across reporting lines if necessary and the boss is 'one of the team'. Relationships between all levels are generally open and tolerant. Open dialogue and team spirit are highly valued. Punctuality and a structured agenda are appreciated. The decision-making process and the need to reach consensus may appear slow and frustrating. But once a decision is made the implementation is generally quick and efficient. The pragmatic Dutch are open and direct, and may even be considered aggressive by people from more formal societies. Swedes are very team-orientated and reluctant to contradict colleagues. A meeting in Finland means lots of coffee, saying only what is absolutely necessary and listening patiently without interrupting.

Italy and Spain have great regional varieties. Manners and behaviour vary between Rome and Milan. There is a marked difference between Madrid and Barcelona. However, some features of business culture hold throughout Italy and Spain.

In Italy it is advisable to confirm meetings in writing well in advance as Italians tend to prefer this to a phone call. The pace of meetings and negotiations is generally slower than elsewhere in Europe. Meetings are regarded more as a platform for exchanging ideas than making decisions. Be flexible - things can change overnight.

To establish a business relationship in Spain takes time and may involve long lunches and dinners, and a readiness to accept local eating hours. Be prepared for unexpected delays in negotiations. It is acceptable to interrupt during meetings and discussions may be lively. Dignity is valued and it is important not to lose face.

Entertaining is regarded as an important part of getting to know your business partner but business lunches may be quite frugal in the Nordic countries and the Netherlands. Business people in most European countries people guard their privacy so don't phone an executive after office hours or during the weekend without permission.

Business cards
In most European countries there is no set time to exchange business cards, although most people tend to do so when they meet. As a general rule, treat your business partners' cards with respect.

Women in business
Women are slowly making inroads into the upper echelons of European business but there are some very distinct cultural differences. Women in Scandinavia, France and Great Britain are well represented, although they may experience difficulties in reaching director or senior management levels. Italy, Spain and Portugal have some very successful businesswomen, usually in family-owned companies, but few women in management and the professions. Women in Germany, Austria and the otherwise egalitarian Netherlands generally find it very difficult to make it to the top. These countries are surprisingly chauvinistic about women in business and female managers are rare. Married women tend to give up work when they have children, as there are very few social systems in place to help working mothers.

Business wear
We need to tailor our message to our specific audience - and that applies to our wardrobe too! A dark suit and a tie for men and a shirted suit or trouser suit are still the standard uniform for women. In many countries a jacket with tie is acceptable for men. Italian, Spanish and French executives tend to be more fashion conscious and being well dressed is especially important in these countries. The dress code for men and women in Germany, the Netherlands and Scandinavia tends to be less formal but still stylish. When travelling during the winter, especially in Scandinavia and Alpine regions, you may require warm winter shoes, boots and coats.

Farnham Castle/Vivianne Naslund
Vivianne NÆslund is a senior management consultant and works with a number of leading European and American corporations, advising them on cross-cultural issues and the human aspect of change. A Swedish national, she has lived in Sweden, France, Switzerland, Germany and Britain and speaks four languages. Vivianne is working with Farnham Castle on various programmes facilitating workshops, seminars and conferences covering business briefings, culture's impact on business practices and global teambuilding and leadership development.

Globalisation is here to stay

The argument for increased intercultural understanding has never been greater
The level of globalisation seen in the last 20 years is not going to go away. Companies need to operate worldwide businesses, and they will continue to do so. Because so many multinational companies receive substantial revenues outside their home country, they cannot withdraw their current management, operations and resources without huge consequences. Substantial planning and structural changes are necessary before such decisions can be made.

In the short term, some companies might retrench and repatriate their people early. But with the current economic downturn, there may be no job opportunities back home! Other companies may choose to move their people out of 'risky' areas and relocate them to perceptibly 'safer havens'.

Twenty years ago employees were expatriated primarily to export their knowledge and skills to other countries. In today's environment, fewer expatriates are needed because companies have built up capabilities in production, marketing, technology, and management, to serve a global network which no longer has a specific home location.

As a result, the number of expatriates represents the core number of employees needed to support globalisation on a worldwide basis. Terrorist threats will not change the need for the development, exchange, and placement of key personnel globally.

The argument for increased intercultural understanding has never been greater. Working successfully in/or managing multicultural teams is a growing focus, along with long-distance management and effective communication strategies.

It is generally accepted that in Europe there is more respect for the time it takes to achieve the desired outcomes of business management programmes. In addition, there is a desire for a more thorough, in-depth exploration of issues and strategies.

A fragile, unhappy, fearful expat family may simply be pushed over the edge by all that they have witnessed. Catching these families early is a challenge to avoid the difficult consequences of an early repatriation.

Family issues will become more important as companies face increasing difficulty in filling overseas assignments with fewer willing to go. Now more than ever, family support will become paramount and forward-thinking companies will recognise this and provide the necessary emotional and factual preparation.

Mobility will not stop. People have to feel secure and their companies need to provide that protection, emotionally and physically. Without it, there can be no global workforce.

Facing the Challenge of Cultural Diversity

Face the Challenge

Developing the multi-cultural organisation: managing diversity or respecting differences?
Today's business and service organisations face a three-fold challenge. With management and employees of a variety of national and cultural backgrounds, they must:

1 enable this heterogeneous workforce to work together harmoniously toward their common goals;
2 maximise the contribution of each member of what is in fact a large team;
3 ensure fair treatment for all, irrespective of background.

Meeting this challenge demands systematic efforts on the part of these organisations, as many of them have come to realise. Whether the multi-cultural character of the company arises from its internationally mobile workforce and its local operations in various countries, or from the mixed backgrounds of a workforce in a single location, the organisation must address this diversity if it is to be successful.

DEFENSIVE OR DEVELOPMENTAL?

Every organisation has a strategic choice to make in how it will face this issue, between a fundamentally defensive approach, and one that is developmental in nature and effect.
An organisation which adopts the defensive approach treats cultural differences as hazards - a series of weak links between people in which there is great potential for misunderstanding, conflict, mistrust and even resentment. It assumes at the start that certain people are inherently culturally insensitive to others. Handling 'cultural diversity' therefore means avoiding giving offence to groups or individuals, preventing harassment, and managing grievances. It may have an implicit political objective as well, to reduce the alleged dominance of one 'culture' or another.
The developmental approach, on the other hand, first of all sees cultural differences for what they are - potentially different values, assumptions, expectations, and behaviour which people bring to business as a result of their differing backgrounds. As expressed by one prominent writer in the field, culture is "the way in which a group of people solves problems" (Trompenaars). Moreover, the developmental approach recognises that these collective tendencies reveal themselves as individual differences. Members of a team are not there to represent a 'culture' or particular ethnic group - they represent themselves.

ACKNOWLEDGING THE DIFFERENCE

In this way, handling cultural differences means recognising
1 that these differences can have a significant impact on how people of different national or ethnic backgrounds approach the day-to-day issues of business and professional life, and
2 that people want those differences, where they exist, to be acknowledged. The developmental approach begins with the more positive assumption that while people may sometimes be unaware of these differences, they are not automatically insensitive to them.

The outcome of the developmental approach is a recognition of these different perspectives as alternative ways of handling particular situations. Cultural differences are no longer hazards - they are opportunities to strengthen the organisation through shared learning, better communication, and new perspectives.

How can one tell whether an organisation has adopted the defensive or the developmental approach? After all, any organisation can use terms such as 'diversity,' 'culture,' 'differences,' or even 'inclusiveness' to its general goals in this area, whatever the reality.

For a start, the defensive approach often arises as a reaction to grievances or conflicts. The organisation may define it through policies, procedures, and public relations statements, and make it visible through initiatives and 'programmes.' 'Training' is preoccupied with reducing insensitivity, often by trying to induce certain subjects to admit how insensitive they are. To the extent that such efforts are presented positively (or in the words of one company's website, "leverage[d] for competitive advantage"), it is as a question of equal employment opportunity.

THE RIGHT ROUTE

Farnham Castle helps its clients follow a developmental route, which assumes a very different form. It often starts at a local level, on a practical basis, with an individual's or a team's efforts to improve the way people work together, or to prepare for wider international responsibilities. It tends not to be fixed in policy or procedure, but instead is most often driven by business needs and actual situations faced by people. Training is interactive, involving exchanges of impressions, experiences, and problems amongst learners. It recognises that perceived differences are as important as 'real' ones, for it is our perceptions of others that give rise to our reactions and judgements.

People learning to handle cultural differences will learn a great deal when they become aware of how they are culturally viewed by others. In addition to awareness, informational briefings increase people's knowledge of possible differences between cultures. That insight in turn helps them see how apparently 'strange' behaviour has its own cultural 'logic,' as the way in which a group of people have, as we said, solved universal problems. With increased mutual awareness and knowledge, mistrust tends to evaporate and questions of cultural 'dominance' become irrelevant.

PRACTICAL BENEFITS

The practical benefits of the developmental approach are seen in their effects on management style and on the way a team works together. 'Cultural' differences are now seen as individual differences arising out of people's backgrounds. These various points of view, openly communicated, represent alternatives and choices available to the group for consideration and negotiation. A greater willingness to talk directly about differences helps build trust, facilitates decision-making and opens the way, where appropriate, to compromise.

The developmental approach, as we have labelled it, needs sound leadership if it is to take root. It will be nourished by the resources of an organisation such as Farnham Castle, which is able to offer (1) collaborative training to raise awareness and increase knowledge, (2) extensive expertise in various business cultures and in the challenges and goals of international business. The developmental approach is further enhanced by training that strengthens the skills required to handle difficult situations and to communicate effectively in intercultural settings.

DIVERSITY TRULY VALUED

None of this, of course, is to imply that organisations should not concern themselves with the indispensable goals of providing a working environment that is free of 'harassment' and discrimination, and of ensuring equal career opportunities for all. We would simply say, however, that truly 'valuing diversity' means valuing the contributions that 'diverse' individuals can make. A developmental, rather than a purely defensive, approach to dealing with cultural differences will help make that a reality.

Article by Robert Day, a senior consultant for Farnham Castle specialising in effective communication/negotiation, team development, and cross-cultural issues in international business.

http://www.intercultural-training.co.uk/

Corporate Social Resposibility

Corporate Social Responsibility
New Fad or Necessity

Organisations of the 21st century can no longer limit themselves to producing and marketing products or services without any concerns for the impact they have on society. If they want to be trusted by their customers, employees and the public at large, they have to be more socially responsible. One key issue of Corporate Social Responsibility (CSR) which needs to be addressed is the integration of ethnic minorities in the workplace and the community.

Demographic changes
The lack of proper governmental strategies following the demographic changes of the 50's and 70's, has left many British companies struggling to this day to deal with the problem themselves. Many organisations have played a passive role in this integration process by staying within the legal boundaries and are now experiencing difficulties in that area.

A lack of consideration of differences
One of the major reasons behind these integration problems is the lack of awareness and consideration for cultural differences. People from different cultural backgrounds have different sets of norms, different sets of values and different assumptions. This means that we all have different ways of reacting to events, different ways of communicating and different behaviours. We judge the others from our own frame of reference and tend to think that "our way is the right way".

In a multicultural workforce, this can lead to misinterpretation, misunderstanding, incomprehension, mistrust and disrespect. As a result, rather than getting closer, people distance themselves from those they consider different and groups are formed on the basis of commonalities, whether it is ethnicity, colour, language etc. "Departmental ghettos" start to appear. Often, there are rivalries and tensions. In some instances, these situations can degenerate into discrimination, bullying or racist behaviours.

The law is not enough
Staying within the letter of the law is not enough for organisations experiencing these situations. It is imperative for them to resolve these issues if they want to retain a stable and productive workforce and be regarded as good "corporate citizens". Organisation can be more socially responsible by contributing to a smooth cultural integration of ethnic minorities into the workplace.

Being more socially responsible
Integration does not mean imposing one way. It means harmonising and synergizing differences. Having a clear and unbiased understanding of the context is the first step toward formulating proper integration strategies. The second step is to develop cultural awareness. Being open to differences, understanding and respecting the other's cultural background are the key elements in preparing the ground for integration. The third step is to build or rebuild trust. Finally, only when trust has been demonstrated from all sides, solutions can be discussed. It is the step where different norms and values are reconciled and tangible and intangible elements of integration are defined. Building shared ownership of the solutions is at that stage essential to reinforce trust and guarantee implementation.

These steps can take different forms; for example interviews with the various groups involved for step one, training programmes at the levels concerned in the organisation for step two and facilitated workshops for steps three and four involving all concerned or a limited number of influential representatives of each group, who can then intervene as mentors to their members.

Being proactive in the integration process of ethnic minorities is a corporate social duty which can strongly impact the community and contribute to a much more committed workforce.

During the last few months Farnham has been working with a number of clients in the development of programmes, using a training approach normally associated with supporting the integration of home and foreign workforces, to address the growing issue of multicultural tension within the domestic workforce. Because of the sensitivity of the issue, each programme has to be very carefully designed and often involves a number of programmes each with a different perspective at each level. The need to exercise corporate social responsibility is evolving in many different guises, in light of recent events, perhaps this one in particular needs our attention now.

To find out more about how Farnham Castle can help you, please email: info@farnhamcastle.com, or visit our website at http://www.intercultural-training.co.uk

Want to do Business in Japan?

Japan has the world's second largest GNP and is the world's second largest market accounting for 60-70% of the economy of Asia. It is the source of a great deal of advanced technology, much of it built into Japanese consumer products owned by consumers throughout the world. Japan has 50 million mobile phone users (40% of the total population) most with Internet access, while broadband technology is rapidly advancing on both the home and business fronts. Total sales through mobile e-commerce reached $500 million in 2000 with projections of $10 billion in sales by 2005.

The Japanese have the justified reputation of being the world's most demanding consumers who are satisfied with nothing less than the very highest standards of quality and service. The Japanese market is therefore the benchmark for any company aiming to succeed in international business.

Despite its ultra-modern, Western appearance and technological sophistication, foreign business people often find that on closer acquaintance, Japan is in many ways the most culturally distinct advanced society they will have encountered. This is part of its fascination. Too much is sometimes made of this but is does mean that time spent acquiring the necessary cultural awareness and knowledge needed to adapt one's style and approach to fit Japan is a necessary investment. Key aspects to be aware of are the strong group orientation of Japanese and the distinction they make between tatemae, the face which Japanese present in public to maintain harmony and avoid embarrassment, and honne, one's real feelings or the actual situation.
Japanese business is relationship-based on the assumption that it is the relationship which makes the business possible. Since Japanese are instinctively wary of those with whom they have no relationship, whether Japanese or foreign, it follows that building a relationship takes time and requires patience, persistence, and perseverance. These are among the qualities most admired and respected in Japanese business and they are needed in abundance by both companies and individuals in Japan if they are to succeed.

The hallmarks of the Japanese approach to business are tireless collection and collation of information, thorough preparation and meticulous attention to detail. Foreign companies in Japan should do their best to match this and should also have clear objectives and a well thought out strategy for the market. Time-consuming and often very costly mistakes have been made there by foreign businesses which have failed to gather sufficient information and skimped on preparation and planning. "Winging it" or "playing it by ear" are sure recipes for disaster. Those who do their homework thoroughly will find a vast amount of information readily available from official and commercial sources as well as many experienced consulting companies to call on with long experience and specialised knowledge of Japan's particular markets. Being prepared also means knowing one's company, products and markets inside out. Those who do not cut a poor figure in Japanese eyes even if they can do business in Japanese.

Formality and formal politeness are much more important features of Japanese social and business life than in most other societies. Their observance ensures respect for hierarchy, the smooth functioning of social relations and the elimination of uncertainty and any possibility of public embarrassment. Knowing and being able to observe the basics of etiquette are therefore important for the incoming business person wishing to make the best possible impression. First encounters in business, for example, must always begin with the formal exchange of meishi or name/business card. Any business visitor to Japan therefore needs to take an ample supply (anything between one and two hundred) of professionally produced cards. They are a key element of the public face not only of the individual but of their company. On the sophisticated and often involved protocol for meetings, entertainment and other areas of business, it is best to take expert advice.

Japanese companies are collective organisms whose individual members are with the company for most if not all of their working lives. Decisions are made after an exhaustive period of information gathering, consultation and discussion (nemawashi) among all relevant parties in the company. This takes time and will involve repeated requests for information as well as great patience from a prospective business partner. It also underlines the necessity for any business partner of developing and maintaining good relationships with as wide a range of people as possible in their Japanese counterpart.

Being able to speak and do business in Japanese is always an advantage, not least because it shows an unquestionable commitment to the market. The language is also an important window into Japanese culture and without the ability to read it, foreigners have the unnerving experience of being functionally illiterate when they arrive in Japan. However only a minority of foreign business people will have these language skills while all Japanese have some knowledge of English and some a very good command of it. It is therefore certainly possible to do successful business through the medium of English in Japan. Native speakers of English however need to now how to adapt their language in order to communicate effectively with second-language speakers of English like the Japanese. This involves much more than just speaking more slowly. And even when doing business mainly in English, every foreign business person should make the effort to learn some courtesy and survival Japanese and in particular the polite expressions and formulas which always lubricate social interaction in Japan. This will always be appreciated.
Whether business is being done in Japanese or English, all relevant printed information such as company brochures, product information and the like should be produced in Japanese and an interpreter, properly briefed, should be used at all important business meetings.

The economic and financial news coming out of Japan over recent years has seldom been positive but this should not be allowed to obscure Japan's massive strengths and the increasing opportunities it offers for successful and profitable business. Worth highlighting here is the genuine welcome now on offer to foreign inward investment in an economy where in the past it has deliberately kept it to a minimum. As a result foreign investment has been rising rapidly.

Graham Thomas was previously Head of the Briefing Office, School of Oriental and African Studies, University of London. He now provides a consultancy service to companies wishing to do business in Asia, specifically in Japan and China and for expatriate Japanese executives to manage non-Japanese effectively in Europe and the UK. May 2002

To find out more about our Working with Japanese, Japanese Language or Living and Working in Japan programmes, please email: info@farnhamcastle.com, or visit our website at http://www.intercultural-training.co.uk

Selecting & Developing the International Manager

How does an organisation identify and develop its international managers for the future?

This article looks at some of the issues involved in the selection & development of the global manager


Whether working in a 'Global' or 'Transnational' organisation, or simply one that exports to its customers from its home country, the successful international manager needs to have developed the competencies and personal attributes necessary to allow him or her to work effectively in an international and cross-cultural environment.


An environment in which they will be expected to interact, manage, negotiate, live and work effectively as individuals and in teams with people whose values, beliefs, languages, customs and business practices are different from their own, and in relationships where misunderstandings can lead to costly mistakes and even business failures.


Increasingly, organisations are looking for ways to develop their managers to handle this important dimension, and many are attempting to fill Board and other senior appointments with people who have a proven track record in successfully managing an international business.


The considerable costs that can be incurred when an international assignment fails means that organisations do need to develop professional and focused processes for ensuring that only the best people are selected and developed for such roles. Seldom is it possible to find a perfect match. A professional approach to the selection and development of international managers, however, can help avoid the problems that invariably arise from appointing people who subsequently become the 'Missionaries', 'Mercenaries' and 'Misfits' amongst international assignees, and who can do so much harm to the business.


The first step in this process should be to identify not the people but the competencies, motivation and personal attributes required for success. International assignments are so often filled as a 'knee-jerk reaction' with the most 'technically' competent and readily available person, and frequently someone who, until that point in time, had never really considered an overseas assignment as part of their career. Experience shows, however, that 'technical' competence, whilst important, does not of itself produce an effective international manager.


There is also the danger that, in their eagerness to take an international assignment or perhaps the fear of possible harm to their careers of being seen to refuse one, people will not think through the personal implications for themselves or for their partners or families. To compound this problem, organisations frequently offer inflated international remuneration and benefits packages to help 'convince' the individual that this is the right career move for them and leave them to sort out any 'personal difficulties'.


Planned process


What needs to be done, therefore, is for the organisation to clearly define their criteria for success at international, managerial, functional and personal levels and then select and develop potential international managers against these.


Whilst there are international competency models that have been developed to help in the selection and assessment process, it is essential that the one which is eventually used by the organisation reflects both the specific or various cultural needs of its markets and the organisation's culture, which sometimes can be in conflict. In identifying the personal attributes needed, it is also important not to assume that there is a single attribute (or personality) profile for all markets. For example, the person who is ideally suited, in terms of their motivation and personality, to work in one market, say the USA, may find it very difficult to work in another, say Germany or Venezuela.


Avoiding over-reaction


This assessment process should not be left until a vacancy arises. It should be ongoing and one through which people who are considered as high performers with international potential are identified as early as possible in their careers and then given the appropriate opportunities to develop their experience and skills in that direction. These should include opportunities to develop their experience and skills in that direction including the opportunity to regularly discuss their aspirations for an international career and, if appropriate, their family's level of support.


Consideration should also be given to planned exposure to the international side of the business through projects that require them to visit and work for short periods in the organisation's overseas operations, or with its customers. This would allow in-market senior managers to assess and provide feedback on how effectively, or otherwise, the person is able to work with the local team and in the different cultural environment.


Allow an informed decision


A further part of the process should be to give individuals the opportunity, with their partners if this is appropriate, to attend relevant country briefings and cross-cultural awareness workshops. This can help them more fully appreciate the opportunities and challenges of an international career and allow them to take an informed and objective view of what they might be letting themselves in for. In this way, there can be a process of self-selection which helps ensure that the people who eventually are offered and accept an international assignment, and their families are fully committed to it. Once committed in principle, the process might then include the use of international focused development assessment centres in which the in-company assessors themselves have a proven international track record and who can become mentors to people once they take up an assignment.


Having identified people with potential as international managers, and who are able and willing to take up international assignments, appropriate formal training should become an integral part of the process. Ideally this will include advanced management and functional skills training, and country briefings covering in some detail the historical, political, economic, social and business environments of the market(s) the individual will visit or be asked to move to. Also required will be cross-cultural awareness training to help them appreciate the values, beliefs and practices of the other cultures and how their own culture may be seen by people from the host culture.


Where appropriate, language training is also very important and should not be left until the person has to take up their appointment. Experience in this area shows that most people become so deeply involved with the operational task from the outset of the assignment that they can seldom find the time to acquire more than a basic social vocabulary in the other language.


In summary, a key strategic imperative in managing an international business must be to develop effective international managers. People who have the knowledge, skills, experience, motivation, personal attributes and cultural sensitivity that will allow them to create a sustainable competitive advantage through the ways in which they are able to interact and operate with people from other cultures.

The bottom line for any organisation, therefore, must be to identify, assess, select, develop and train their international managers against clearly defined criteria that reflect their markets and which fully support the international management needs of their overall business vision and strategy.








INTERCULTURAL BUSINESS TRAINING & ASSIGNMENT BRIEFINGS

Farnham Castle pioneered intercultural training and briefing and leads the field in terms of coverage; our programmes cover every country and every culture in the world; expertise, we boast the most extensive database of expert knowledge and experience available anywhere and quality of delivery and service, we count a large number of the world’s leading international organisations on our client list, many of whom have been working with us for over 20 years.Wherever you are operating, whoever you have appointed and whatever the role, we can provide individual and team developmental support to help your company work more effectively anywhere in the world.

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