I read somewhere recently that the best way to approach the differences of culture and etiquette in Asia between different countries, and to avoid confusion with Western cultural norms, is to group Asian countries under their primary means of eating: Chopsticks or Hands.

The Chopsticks countries include Japan, Korea, China, Hong Kong, Taiwan, Singapore as well as the overseas Chinese in general. They are characterised by their governing ‘Confucian’ approach to doing business.

Hands countries, by contrast, include those largely Islamic peoples and nations that regard eating with the left hand as ‘unclean’ and therefore use the right hand to eat. These cultures include Malaysia, Indonesia, southern Thailand and Burma (Myanmar) and are characterised by their adherence to deep spiritual beliefs.

CHOPSTICKS VERSUS HANDS

The problem with such an arbitrary division of cultures is that it is both misleading and condescending. A proponent of the Chopsticks school of thought has written that the use of chopsticks in these countries reflects a ‘non-rational’ or ‘illogical’ cultural trait because eating with chopsticks is not the easiest, most hygienic or elegant way of consuming food.

A proponent of the Hands school ventured that, although eating with the right hand suggested deep spiritual beliefs, it was also an uncomfortable and irrational habit.

Neither Western commentator thought fit to point out that chopsticks were the logical answer to eating from a rice bowl and transferring delicate pieces of food to that bowl from communal dishes in the centre of the table.

Nor did they remark that the Koran places a special emphasis on community and family, hence communal eating that allows for food to be wrapped in breads.

DEEP SEATED SPIRITUAL BELIEFS

Quite apart from the cultural ignorance such generalisations reflect, such arbitrary divisions confuse more than they inform. It is true that various Asian countries often have different cultures with aspects of etiquette that are uniquely theirs.

But as a general rule, it is true to say that almost all Asian cultures have more deep-seated and widespread spiritual beliefs than Western ones.

In terms of business etiquette, this often translates into a higher degree of formality, more gestures of respect, and more concern with correct titles, among other refined manners. Japan and South Korea are not the only ‘ceremonious’ countries in Asia.

Indeed, bowing and card giving, awareness of seniority, correct forms of toasting, Islamic and Buddhist forms of greeting, all go to the heart of business in Asia. Business etiquette is not an optional add-on to building successful relationships in Asia; it is an essential means for showing respect and therefore creating long-term trust.

It doesn’t matter if you’re not very good at it – at least to start with – or that you make some basic social or cultural mistakes. The mere fact that you aim to participate and to learn already shows respect, and your faux-pas will often be greeted with humour as well as indulgence.

IT’S ALL IN THE MINDSET

For what differentiates almost all Western business people that are successful in Asia, as well as almost all successful business travellers, is that they have learned to see the culture of the country in which they are a visitor from another viewpoint to their own, more Western-oriented culture.

They are able to enter into the spirit of that country through willingness, preparation, emotional intelligence, empathy and lateral thinking.

To take a simple example, ask yourself whether you would be flattered to be called ‘primitive hunter-gatherers’ because you still eat with a knife and fork. Or whether you would be happy to be termed ‘inelegant’ because you were hooked on McDonald’s burgers (which you eat with your hands, by the way).

These are not incidental questions. Countless surveys have concluded that the way you present yourself in the office and work environment accounts for almost 80 per cent of bu[...]

Trust is the cornerstone of doing East-West business and public relations or PR is one of the most powerful tools to build and maintain trust required to do business between East and West.

PR helps businesses to identify and understand who their target audience is: how to communicate with it effectively; and what to say, in order to build the trust required to do business effectively.

…But is PR in the East different from PR in the West?

The answer is both yes – because of cultural differences – and no.

Culturally, people in the East tend to listen to authority and as a result they my not speak up or express their opinions as openly as in the West.

For example, a yes may well not mean yes in the East, so Westerners have to dig deep to really understand what their counterparts really want.

On the other hand, there is no difference in doing PR in the East and the West because the end goal is the same, which is often to drive sales performance or to raise brand awareness.

So what are the elements of a successful PR campaign to present a Western brand and products in China/Asia?

This is the topic of the interview I hosted in the Asia Business Network Expert Series with Sally Maier-Yip, a cross-cultural Public Relations Strategist with a mission to help companies build successful business with PR and marketing in both Europe and Asia.

Tune in as we chat about the inside tips and secrets to East-West PR and communications:

9 Secrets To Create A Winning PR Strategy for Asia/China Business

Listen in as we discuss:

Finding a memorable Chinese brand name

Choosing a local brand ambassador in China

Why global messaging doesn’t work

KFC’s ‘Eat Your Fingers Off’ Mandarin mistake

Don’t wish your Chinese consumers an ‘easy death’

How Chinese brands use PR in Western markets

Does a Chinese brand mean poor quality?

Why educating clients about cultural differences is essential

How doing it ‘my way’ may not be their way

Have you made a big cultural mistake when doing business in Asia and how did you overcome it?

Would you add anything to Sally’s great advice on how to create an East-West PR strategy?

PODCAST VIDEO 

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The post When East Meets West, What’s Your PR Strategy? appeared first on David Clive Price.

When asked about the biggest challenges they face in doing business in international markets, companies and business leaders often cite lack of cultural awareness and knowledge as being major obstacles to their success.

And yet when the same leaders focus on their business development strategies for overseas markets, the question of cultural knowledge is relegated to an also-ran, a soft and fuzzy ‘extra’ to the main business of winning market share and generating profits.

There are of course exceptions, but these tend to be leaders with high cultural intelligence, people who have developed their ability to adapt successfully to a new cultural setting.

WHAT IS CULTURAL INTELLIGENCE?

But what EXACTLY is cultural intelligence and why do some people seem to have it and others don’t?

Cultural intelligence (CQ) is related to emotional intelligence (EQ). People with high emotional intelligence are attuned to the emotions, needs and wants of others.

Culturally intelligent people take this further and apply EQ to reading and understanding the values, beliefs, expectations and physical expressivity (body language) of people from other cultures to their own.

For many years I have worked in and written about 12 Asian countries: China, Hong Kong, Indonesia, Japan, Malaysia, Myanmar (Burma), Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam.

I have also lived in Italy, Switzerland, France, Germany, Spain and the USA and I have studied their cultures in exactly the same way, ie from another viewpoint to my own.

Wherever I’ve lived, I’ve learned that cultural intelligence is not innate. You are not born with it or without it. Cultural intelligence can be and often has to be developed. 

But once developed it functions like a sixth sense – or as the more militarily inclined might say, like a radar.

CULTURAL INTELLIGENCE IS LIKE MILITARY INTELLIGENCE

I was recently at a conference where cultural intelligence (CQ) was explicitly linked to military intelligence – the afternoon activities were devoted to military-style games and maneuvers, and the participants were then judged and addressed by a former general.

So the military comparison with CQ is not so far-fetched. Risk assessment and targeting, on-the-ground reconnaissance, mapping the terrain, forging alliances and network building, above all gaining some knowledge of the local language, customs, ethnic groupings and beliefs, are equally applicable to both the military and business.

Whether they leading a culturally diverse team at home, building rapport with a cross-functional team or cross-border team overseas, or developing business in international markets, all business leaders need this cultural intelligence.

A FORM OF COMPETITIVE ADVANTAGE

They don’t have to be experts in every culture, or suddenly develop extraordinary linguistic skills.  They simply have to develop an openness of mind, a readiness to learn and their own personal ‘radar’ for what is going on, country by country, market by market where they operate.

In Asia’s extraordinary mosaic of cultures, beliefs, ethnic diversity and languages, cultural intelligence is not so much a nice-have as a MUST-HAVE. It should be developed not as an optional add-on to business strategy but as a central core of the strategy itself: a form of immense competitive advantage.

Here are 6 Key Competitive Advantages of Cultural Intelligence:

1) Creating trust, developing respect and and forming long-term relationships

2) Understanding local consumer needs and targeting brands and products to each individual market

3) Learning the importance of indirect communication in different cultures

4) Avoiding extremely costly mistakes, blunders and misunderstandings

5) Participating in local social, family and cultural life – and hence business networks

6) Adapting expectations away from short-term transactions and contracts towards sustainable revenue growth.

The good news is that cultural intelligence can be developed into a syste[...]

Thought Leader can easily become a devalued term, especially when companies mass-produce content for their CEOs without really saying anything new or creative or disruptive.

…But in fact real thought leaders do not call themselves such. The market decides if their work deserves the term.

So forget about calling your every article or blog you publish ‘thought leadership’ pieces.

You’ll need to produce some very original and exciting ideas over a period of time before you merit the term ‘thought leader’ – and even then you may live in a culture, like many of the cultures in Asia, where pushing yourself forward is frowned upon.

So thought leadership is a choice – and it’s not for everybody. But in fact the most successful business leaders today are not so much thought leaders as thoughtful leaders.

They show qualities of ‘baring, sharing and daring’ in their leadership, and empathy for others that mark them out as authentic and credible.

This is particularly true in international markets, and in doing business in and with other cultures.

Intellectual thought and rational decision-making are not always enough in a time of increasing globalisation and change.

So how do you become a thoughtful leader?

This is the topic of today’s expert interview when I had the opportunity of speaking with top executive coach, business consultant and author of The Thoughtful Leader, Mindy Gibbins-Klein.

Tune in as we chat about the inside tips and secrets to truly thoughtful leadership:

6 Tips for Thoughtful Leadership in International Business

Listen in as we discuss:

When a thought leader is not a thought leader

Why some cultures (think Asia) prefer thoughtfulness

How to use your head AND heart to inspire others

The power of baring, sharing and daring

Outsourcing thought leadership without thought

Why ‘real’ leaders count for more across all cultures

And more

Have you been called a thought leader and what did you think when you heard the term?

Would you add anything to Mindy’s excellent advice on how to become a real thoughtful leader?

___________

I train clients and coaches in the Intelligent Leadership (IL) Executive Coaching Process, a 6 to 12 months “immersive” leadership and personal growth journey that unleashes a leader’s full potential so they truly become the best leaders and people they can be.

The IL blueprint strengthens a leader’s inner-core and outer-core, enabling them to realize 4 game-changing outcomes in their business and life: altruism, affiliation, achievement and abundance (4 A’s). These 4 A’s are the seeds of achieving sustained greatness and creating a lasting legacy.

For more information Visit www.davidcliveprice.com/executive-coaching or Download my Intelligent Leadership™ Executive Coaching Profile.

PODCAST VIDEO

The post Thoughtful Leadership for International Business appeared first on David Clive Price.

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I was talking with a very successful director of a bicycle company the other day, with operations in Thailand, China, Japan, South Korea and Malaysia. I was trying to find out what it was that had made his company so successful in Asia, in addition to his excellent brand and product.

And as he showed me pictures of the promotional events for his bicycles in various Asia countries, with the shiny new bikes surrounded by enthusiastic teams of local bicycle enthusiasts, I realized what it was. He was a natural empathizer.

DEVELOPING YOUR EQ

Or to put it another way, he communicated his brand and message to the bicycle fans of Thailand, China, Japan, with real passion not only for the product, but also for the local people.

He had a strong sense of social and emotional intelligence. Armed with this heightened EQ, he dived into the cultures of each market he targeted in Asia, and joined the enthusiasts in their own particular journey.

Before he launched a bicycle, he went to local bicycle shops and found out what was in their store, what was promoted on their walls, what kind of journeys the local Chinese or Japanese in Shanghai or Osaka took each day.

He researched what they wanted from their bicycles, what their average height and weight was, what the terrain was like, what kind of weekend outings they took – perhaps to a temple or a beauty spot or a riverside restaurant.

Some of this was simply intelligent marketing, making his global product much more local and attractive – and therefore successful. He launched new prototypes of bicycles according the specific requirements of his Chinese or Korean or Thai customers. Some of these models looked almost like something out of science fiction, they were so advanced and lightweight.

 

 

 

 

 

COMPETITIVE ADVANTAGE

But in addition to marketing, he seemed to have a natural affinity for his Asian customers. And as he talked, he confided that he had lived and worked as a mural painter in Japan as a younger man. He had also lived in Spain, married a Spanish woman and spoke fluent Spanish. He said he loved other cultures and wondered why some people seemed to be afraid of them.

In other words, he was predisposed to successfully marketing his products through empathy or emotional intelligence. For some people, this emotional intelligence comes naturally, along with an ability to put yourself in the minds and hearts of others – to understand what they think, how they feel, what they believe in and desire.

For others, it has to be drawn out of them by a process of education and practice. He told me about some other Western competitors he knew had failed in Asia because they refused to adapt, or listen, or learn.

HANGING OUT WITH THE LOCALS

‘You have to be a bit like a spy,’ he said. ‘Don’t stay in the expat or corporate enclave, or in your hotel. Hang out with the locals, lurk around in back streets, go to local festivals, join in with banquets and entertainments. And if you don’t know the language, learn enough words to be respected and to please your hosts.’

I thought about what he said, and about his journey afterwards. And it reminded me of a very simple lesson for everyone wanting to succeed in business in Asia:

Say yes to other worlds or ways of doing things, empathize, and above all use your emotional intelligence as a form of competitive advantage. It really does pay off!

PODCAST VIDEO

The post How To Use Emotional Intelligence In Asia Business appeared first on David Clive Price.

The post How To Use Emotional Intelligence In Asia Business appeared first on David Clive Price.

Paul Edwards MBE in conversation with David Clive Price

David: Hello. This is David Clive Price and you’re so welcome today to the Asia Business Network ‘Expert Series’. Coming up we’re going to talk about winning in Southeast Asia business and how you can grasp the opportunities on offer in one of the world’s most dynamic regions. And we have an awesome guest in the expert’s chair today. Paul Edwards had a long and distinguished career in the army, which included service around the world and as a defence attaché resident in Malaysia with similar responsibilities for Vietnam and Thailand.

At various times Paul has also worked in Singapore, Indonesia and Burma. He speaks Malay-Indonesian and he’s an expert in relationship management. Now Managing Director of Strategic Effect Limited, Paul mentors and successfully enables companies to develop their exports, particularly to Southeast Asia. So we’re thrilled to have him here today. Paul, welcome.

Paul: Thank you, David.

David: So, to kick off I think we should look at the wider picture. What do you think of ASEAN as a market for British or Western businesses? Is it worth the effort?

Paul: David, it certainly is worth the effort. ASEAN is a very dynamic place. Just look at the mix of cultures and people, and the excitement of doing business whether living there or visiting. And then look at the figures, look at what’s happening — and I have been looking at ASEAN quite closely over the last 10 years — it is moving very definitely in the right direction. Of course it has a population of 620 million, and the demographics are good.

Within that 620 million, let’s take Vietnam as an example, some 50% are under the age of 25. They are moving forward, they are changing. They have total trade of circa USD2.5 trillion driving a combined GDP that is not too dissimilar. And they are sustaining growth. This is not just a spurt, it’s been happening for some time, and if you average it out it would probably be around 5% growth.

But probably the most exciting thing is that ASEAN is evolving to become a very useful common market place in Southeast Asia, with the added benefit now of ASEAN plus six. That is to say the associated countries of China, India, Japan, South Korea, Australia and New Zealand – giving it an inter-regional trade element.

In addition to the powerhouses of Singapore and Malaysia, Burma/ Myanmar is now opening up as a result of gradual political change over the last five years. It’s not there yet, but it’s definitely moving in the right direction and a lot of companies and countries are acting on that. In addition, ASEAN is rich in natural resources.

But most importantly, the near future is very exciting because ASEAN has targets for market integration that include free movement of goods and services, elimination of tariffs, free movement of skilled labour, free movement of capital investment, and of course harmonisation of the rules to provide a single window for processes and procedures. So that is all hugely encouraging.

Western companies are now able to focus on a single country in ASEAN but also branch out to neighbouring markets because business is being made so much easier. Another factor that makes ASEAN markets attractive is the perception of Western brands. I often wax lyrical about the British brand and how compelling that is to various Asian countries. But there are other Western brands that are particularly attractive to ASEAN consumers. The USA, for example, has a number of really popular brands as well as the European brands for fashion and the Germans with automobiles.

So to answer your question, it’s certainly is worth the effort. It’s an exciting market and it’s an exciting time for that market, David.

David: Well, thank you Paul for that fantastic overview of the ASEAN market and the 10 nations plus six, which offer a further gigantic opportunity with AS[...]

By Mariano A. Davies, President and CEO of British Chamber of Commerce Denmark

I recently met the author, international speaker and cross-cultural leadership expert, David Clive Price. He was attending a summit of European CEOs and business leaders in Copenhagen. I took the opportunity to discuss with him his forthcoming talk “Bend Like Bamboo” to the British Chamber of Commerce in Denmark on the subject of intercultural leadership.

MD: Why do you think intercultural leadership and cultural intelligence are so important in business nowadays?

DCP: Globalization has made the business environment not less but more complex, more dynamic and more competitive. In this context, the ability to perform well in different cultural settings has become increasingly important.

MD: And yet some would say cultural differences matter less in this age of rapid change, when we are more connected and digitized than ever, with more cross-border M&A, many new and more accessible markets, and greater mobility of workforces and teams.

DCP: Yes we are more connected than ever but as business becomes more global, there is a greater need to gain knowledge about local markets and cultures, a greater need to build local and cross-border cultural teams, and more pressure to compete against local and regional competitors.

MD: Does this have any relevance for smaller and medium-sized companies? Or does it only concern multinationals?

DCP: It has relevance across the business spectrum. Even the smallest company can now be a ‘mini-multinational’ and has the potential to be a leader of the global stage.

MD: So how do you suggest companies both large and small develop the intercultural skills needed? How do they build successful multicultural teams at home and overseas?

DCP: Some 25 per cent of European companies in a recent survey cited fear and lack of local knowledge as the biggest obstacle to doing business overseas or across borders. That means that fear is hindering many companies from developing the necessary cross-cultural skills to succeed in the global marketplace.

MD: What kind of fear?

DCP: Fear of operating in an unknown business environment, of stepping away from the familiar. Another big fear is the threat posed by the Rise of the Emerging Markets. Seven of the largest 12 global economies by 2020 will be in the Emerging Markets. Asia’s middle class will soon equal that of the US and Europe combined.

MD: So how does this impact the ways companies approach new markets, for example those in Asia?

DCP: The rapid shifts in the global economy have both leadership and cultural implications. The most successful leaders will be socially and cultural adept, able to transform their company culture by being globally agile and responsive to other mindsets and way of doing things.

MD: But surely business is pretty much the same everywhere? At least, that’s what many would say.

DCP: It may look like that on the surface, but it isn’t. Try going into China and other Asia markets and using your usual, rational, decisive and rules-based approach leading to a contract or deal. It won’t work.

MD:  And the reason?

DCP: Business in Asia is much more personal and relationships-based. These relationships are built over a long period of time and are not tied to transactions but to mutual obligation and benefits – matters often beyond business – and on networks.

MD: So you’re saying there’s a fundamental difference between the way Asians do business and the way we do business in Western countries?

DCP: There are many exceptions and many differences between generations, but by and large the family and the collective are far more important in most Asian countries than in our more individualist Western cultures — so too is saving face and avoiding confrontation or being publicly critical of the boss or other colleagues or your Western counterpart.

MD: Is that why gestures of respect seem to have a lot more importance in Asian countries, including banqueting [...]

If you are planning to do business in Asia, it is essential to remember that the Asian approach is not necessarily direct and ‘let’s get down to business’, especially when meeting socially (for example, for dinner).

Most Asian cultures expect the approach to be indirect, even circuitous, and above all based on getting to know you in order to build a relationship of trust, credibility and empathy.

Since Asia cultures are so family-oriented, this often means that enquiries and discussion about family and social background/circumstances, home and hobbies, initially take precedence over direct business negotiations.

FOOD, GLORIOUS FOOD

At a first business meeting, especially a formal lunch or dinner (a banquet of at least eight courses in Hong Kong and China), business is often not expected to be the primary topic.

Asian business partners want to get to know you, not your bottom line. They want to know if there is likely to be longevity in the relationship, if they can get on with you, if you have the ability to work in harmony with their business and social culture.

Therefore food – and discussion about food – is a great way to gauge if you are a good fit. It’s also a fantastic way to build a long-term business relationship. Everyone in Asia loves to talk about food, the freshest local ingredients, the best regional variations, the optimum mix of spices, the seasonal variety of dishes, and so on.

If you are able to talk about food, and eat Asian food with gusto and without pre-judgment, you will inevitably succeed in Asian business.

THE ABC GUIDE TO DINING

So here are some basic tips for those essential dinner meetings:

Be on time

Exchange business cards, holding the card as a rectangle in front of you to present as instructed above

Expect to be slightly formal to begin with, exchange handshakes if offered, don’t bow even if bowed to

Let the host order

Don’t talk business

Try everything put before you (you don’t have to finish it, just pick).

Dishes might includes sushi or sashimi in Japan, a wide variety of unusual animal delicacies in China, fiery kimchi (chilli and cabbage) in Korea, various gradations of Thai curry, and more or less anything in Hong Kong

Be prepared not to turn your nose up but instead offer the local word for delicious (ho-may or ho-sek in Hong Kong and China, sarap in the Philippines, oy-ishi in Japan etc.). Leaving some food is a compliment, suggesting the meal is too good to finish

Be concerned about your host’s family, friends, daily life, and so on

Have a few words of the local language (even ‘thank you’ or ‘yes’ and ‘no’ gets you a long way in the business relations stakes)

Be polite to the waiters, even if they’re not polite to you or don’t conform to your standards

Be complimentary (for example, about the local transport, culture, temple you’ve seen, city’s modernity, local food etc)

Toast only after the host toasts, but accept any toast in your direction with a sip of your wine and a slightly raised glass

Don’t get drunk, even if your hosts do: a doctor’s advice to be moderate is an easily accepted excuse. Sip slowly, because your beer glass or wine cup will be immediately refilled

If tea is involved, the locals will also regularly refill your cup. Acknowledge the refills with two fingers bent downwards on the table top if in a Chinese restaurant

Let the host pay

In China and Hong Kong, entertaining usually takes place at a well-known bar or restaurant. Similarly, in Japan, your host will take you out to wine and dine for a whole evening (sometimes with karaoke, be warned). Koreans, however, like to entertain both in restaurants and at home.

If you’re going to a private home, arrive on time and bring a small but delicate gift (click here for suitable gifts for individual Asian countries).

Most Korean homes, as with many homes in China, Hong Kong, Vietnam, Singapore, Malaysia, Indonesia, the Philippines and Japan, have a small lobby or cupboard where outdoo[...]

I often hear Western businesspeople complain that they can never to get to the point in business discussions with the Chinese. Decisions never seem to be made. Everything seems to take an interminable time. There seems to be no logic to the process.

It’s as if anything that varies from best practice as understood and implemented in Western countries such as America or Britain is defective and not to be followed in any circumstances.

The general feeling is that eventually all Asian countries, and China in particular, will become more Western and follow due process in terms of law and business behaviour and clear rules and straightforward, enforceable contracts.

FACE-SAVING TACTICS

However, what these Western businesspeople forget is that personal dignity or face is very important to the Chinese and this has particular relevance to decision-making. Face-saving tactics are often used in business to avoid giving a clear, logical response to proposals.

This gives the Chinese side time to consider proposals and to wait until a personal relationship is further established. The negotiation itself will be slotted into the time-hallowed process of guanxi  (relationship) building and reciprocal obligations.

Whatever was said or half-agreed at the initial meeting will be forgotten unless you made a clear note of what was agreed. Clearly, this oblique and largely instinctive behaviour is a way of buying time in negotiations and also of avoiding the disharmony created by giving straight yes/no replies to proposals or questions.

WHAT YOU DO, NOT WHAT YOU SAY

Other non-verbal techniques, such as vaguely worded and evasive questions and a love of paradox, are all part of the learning process for the Western businessperson in China. Those who are posted to China for a short time are rarely able to conquer these high-context and oblique negotiation processes.

Many companies feel that the effort to invest in the necessary training is not worth it. However, to think in these terms is both shortsighted and negative.

It is best to remember that a Chinese may well send you in the wrong direction if you ask for directions in the street simply not to lose face. I have personally experienced this in Shanghai and many other Chinese cities. For Western companies, a simple investment in preparation, research and intercultural training will help navigate the minefield of saving face in China.

Another way to succeed is to leave your ego at home. The Chinese pay attention to what you do, not what you say, so it’s better to be understated and modest in all your actions and behavior.

Show your Chinese counterparts respect and make an effort to get to know them on a more personal level. This will help you to gain their empathy for your position.

GETTING TO KNOW YOU

Much is made of the elaborate banqueting, drinking and karaoke sessions in China. These might not seem like ideal negotiating forums, and indeed they are not, but they are an important way to bond with your Chinese counterparts and they should be respected for that alone.

Also, beware of thinking that absolutely no business goes on amid all the toasting and gan-beis. You may not realise it, but these ‘getting to know you’ activities are not the prelude to negotiation. They are in some ways the opening of the play. You should be working out the script, just as the Chinese are, and getting ready to play your part in the unfolding drama.

I don’t mean that you should be spouting endless business topics between drinking Chinese Mai Tai and eating Beijing Duck and singing ‘My Way’. I mean that you should have a clear, strategic plan for what you want to get out of the relationship in the long run.

You may be able to deliver this plan in a short message of thanks or a toast at the event itself. Whatever your vision is, you should be ready to enact it in slow and careful stages with the ultimate goal in mind.

So this week’s Intercultural Challenge is: to stop thinking that if you speak slowly a[...]

Despite the huge opportunities for expanding business in Asia, it sometimes seems that fear is taking companies out of the game even before they get started.

I was talking to a CEO recently at a European business summit and he said that he felt a ‘deep discomfort’ when trying to talk business with Asian counterparts, particularly the Chinese. His fear of making the wrong move had led him to withdraw from going any further with his Asia business plans. 

He is not alone. A recent government survey in the UK revealed that more than 25 per cent of UK companies cited fear and lack of knowledge as the number one obstacles to their doing business overseas. 

So what is going on in the minds of these CEOs and business leaders that fills them with such deep discomfort?

THE THREE MAJOR FEARS

Based on my experiences with clients, there are three major ‘types’ of fear that prevent companies operating or expanding with confidence in Asia.

1. The first type of fear is the fear of embarrassment or making mistakes in an unfamiliar business world and culture.  

This is perhaps the easiest kind of fear to overcome because it is based largely on social apprehension. It’s a bit like learning to swim. You can’t do it until you do it – and hopefully there’s someone with you that you trust enough to put their arms beneath you when you sink. 

Only with several attempts and many gulps of water do you finally have the confidence to make that first and second stroke alone – and suddenly you’re swimming!

Those CEOs and executives that have succeeded in different Asia markets with strong cultural differences (almost all of them) have done so because they take the plunge.  

They learn as much as they can about the local culture and beliefs, and apply the same system of semi-immersion in every Asia market they enter.

2. The second type of fear is the fear of silence or miscommunication. 

This fear goes further than social or cultural blunders and is much less easy to solve through hit-and-miss. 

Basically, it goes to the heart of the business enterprise: the deal. Or at least that’s what Westerners would regard as the heart of the matter.

If the Asian counterpart does not proceed in a logical manner and give clear replies to questions of yes and no, the Western businessperson panics. 

 They don’t recognize impassivity or silence as part of the business discourse, and they don’t know how to deal with business discussions where there’s no clear outcome.

Business in Asia often seems secondary to socializing, banqueting, talking about families and holidays, karaoke and so on.

The solution to this fear is simple. All you have to do is to accept that much of Asia business is indirect, based on relationships built up over time rather than immediate, quick-gain profits, and on mutual trust and obligation.

3. The final type of fear is the fear of the unknown, or of not knowing what is going on.

Part of this fear is simply to do with foreign languages.

Although English is spoken as a lingua franca in most, if not all Asia capitals, it’s rarely used as a first language – and even when it’s used widely, your Asia counterparts will not have the same inflections and beliefs and attitudes underlying their English as you do. 

Moreover, they will often speak in their own language even when you are present. Unless you are a polymath or skilled in a local language, it is easy to feel on the outside of these discussions and to be unsure of what is happening or being said.

This feeling is compounded when combined with the two previous fears, especially if you don’t have a trusted local team that can advise and interpret the local language and culture for you.

So this weeks’ Intercultural Challenge is straightforward: I invite you to adopt the mindset that helps me a lot in Asia, of ‘trusting yourself to the locals, not fighting or ignoring their culture’.

I’d love to hear your feedback so please share and/or reach out from whatever platform you’re receiving this challenge a[...]