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.
Showing posts with label working abroad. Show all posts
Showing posts with label working abroad. Show all posts
Wednesday, 12 December 2007
Tuesday, 4 December 2007
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
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
Thursday, 1 November 2007
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.
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.
Tuesday, 30 October 2007
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.
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.
Tuesday, 9 October 2007
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.
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.
Wednesday, 29 August 2007
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 interna
tional 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.
http://www.intercultural-training.co.uk/index.asp
If you want further information on the training courses provided by Farnham Castle, please email: info@farnhamcastle.com
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 interna
tional 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.
http://www.intercultural-training.co.uk/index.asp
If you want further information on the training courses provided by Farnham Castle, please email: info@farnhamcastle.com
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