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.