Knowledge of cultural orientations and societal systems helps in understanding cultural differences and provides a solid foundation for researching the culture of a new target market. Research is essential to avoid cultural faux pas.

For example, an organization sending representatives to Japan to meet with a potential trade partner would be wise to research where Japanese culture falls on the various orientation scales, as well as its most valued social and business practices.

The research would reveal that gifts are an important aspect of Japanese protocol. To the Japanese, gift giving shows respect, friendship and appreciation and is a centuries-old ritual with a host of associated protocol. This information will help an international trade practitioner make a good impression when meeting a potential Japanese partner.

When seeking knowledge about a target culture include the following recommended research questions:

• What are the social norms and business protocols?
• What are the definite dos and don’ts?
• What are the key differences between this culture and ours?
• What are the key similarities?
• What stereotypes does this culture have about our culture?
• What stereotypes do we have about their culture?
• What events and trends are currently impacting the target culture?
• What is our shared history?

Know the do’s and don’ts of social norms and business protocols

Social norms and business protocols reflect the way people expect others to behave in particular situations. They are largely based on values and are reflected in cultural orientations and societal systems. Before interacting with an unfamiliar target culture, international trade practitioners can benefit from learning the generally expected behaviours in social and business situations.

Social practices are crucial to know, as many business decisions are made outside of meeting rooms. In addition, cultural differences can be more pronounced in social settings. As an example, the best Indian meals take days to prepare. To decline to eat dishes prepared for guests in such situations would be viewed as disrespectful and could erode any chance of a business relationship.

Some of the norms and protocols listed below are very important to a culture and should be noted as definite dos and don’ts. International trade practitioners should seek information about which behaviours are considered offensive by the target culture and add these to their “don’t” list as behaviours to avoid. They should also seek information about what is considered highly desirable and add these to their “do” list if the expectation also applies to foreigners.

Even when they do not adapt the behaviours themselves, knowledge of important norms provides insight into the other culture’s values, perceptions and behaviours.

For example, if international trade practitioners are hosting business associates from a culture where greetings are formal, the visitors should not be expected to adapt a more informal and personal form of greeting, such as kissing one another on the cheek or hugging.

Social norms: 

• Dress and appearance
• Greetings and goodbyes
• Gender roles
• Food and drink consumption habit
• Nonverbal communication e.g. gestures, personal space, facial expressions, touching
• Holidays
• Humour
• Acceptance of technology
• Freedom of speech and other liberties
• Religious practices

Business protocols

• Language used
• Exchange of business cards
• Greetings and goodbyes
• Introductions
• Appropriate time for and amount of socializing
• Dress and appearance
• Gender roles
• Gift giving
• Meeting protocols e.g. seating arrangements, turn-taking, presentation
• Ethical standards and degree of corruption

Stay on top of recent changes that impact cultures

Culture is changed by events and trends. The amount and speed of cultural change depends on how willing people are to accept it. Many people in the U.S. were motivated by fear to quickly accept an increased level of surveillance following 9/11. The types of events that can impact culture are numerous. Some examples include threats to public safety and property, changes in the type of government and environmental disasters.

There are also numerous trends that impact culture. Examples of these include societal changes in demographics, technology, dominant industries, standard of living, government policy, access to education, and the natural environment. As a result, international trade practitioners research the impact of events and trends in target markets.

For example, a distributor of communication products would investigate technology usage rates and the demographics of users. Such information helps determine if a potential market is viable and how to position marketing efforts. Once in a market, international trade practitioners monitor current events and trends to stay up to date on cultural changes.

Knowing the history can open doors as well

Before entering a new market, it is advisable to research its history, including history that the two countries have shared, particularly when that shared history has had a profound impact on one or both jurisdictions. The nature of the connections influences how a country’s image is perpetuated and how easily the doors of commerce will open for international trade practitioners.

As an example of how shared positive experiences can provide common ground for relationship building, consider the Netherlands and Canada. They share a military history, with Her Royal Highness Princess Juliana of the Netherlands and her family having lived in Ottawa during the occupation, and Canadian forces spearheading the liberation of the Netherlands at the end of the Second World War.

Canada and the Netherlands have also worked side by side in multilateral efforts around the world in support of peace and democracy. In addition, over a million Dutch people have immigrated to Canada, resulting in many business people with a relative in Canada—a great icebreaker for a first meeting. This shared history has contributed to positive trade relations between the Netherlands and Canada.

In 2011, Dutch Foreign Direct Investment (FDI) in Canada totalled CAD 56 billion, making the Netherlands Canada’s second largest source of FDI. The two-way merchandise trade was valued at CAD 8.1 billion in 2012.

The post Avoid awkward cultural faux pas by doing the proper research appeared first on Trade Ready.

Custom-tailor your approach just like a Hong Kong tailor does for a silk suit or dress. They understand how to fit their clothing for a particular person, and you need to do the same for each unique situation.

Avoid imposing personal customs, habits, and business etiquette from your passport country into international business meetings and deals. By doing a little research and preparation, you’ll fit in more easily and find your business dealings go more smoothly.

Consider these 12 tips to prepare for business meetings abroad:

1. Time

Plan to arrive early and stay late. Understand that ‘time-conscious’ Western economies think of time as a limited and cost-related commodity. Western businesses also tend to be more short-term focused than those in the East, for whom quarterly earnings are less a measure of success.

Remember, these are cultures whose history is measured in millennia rather than centuries! Allow plenty of time for discussion, dinner and drinks.

2. Plan a power conversation

Include the higher purpose in the early discussions. Discuss the 30,000 foot view, like the industry’s current and future developments, not just the business at hand.

3. Small talk starts the meeting

Be prepared to begin with small talk about your business counterpart’s country, as well as their customs, history and current popular sports figures. Consider incorporating activities that will be popular and positive experiences for everyone, such as visits to their world heritage sites.

4. Formality shows self-control and self-respect

Body language is as important as the words you speak in Asia – sometimes more so. Remain calm and formal to demonstrate self-control and that you’re worthy of their respect. It is considered improper etiquette to place hands or fingers on yours or anyone else’s head, face or mouth.

5. Prepare a Memorandum of Understanding

Have an MOU prepared in advance so that when both parties agree to move forward, you are ready to start the process. More detailed agreements, including licensing, can be drafted later.

6. The importance of saving face

Saving face, the notion of ensuring behavior does not provoke strong negative emotions in another person or yourself, is critically important and deeply valued in society and business. Ideas should be discussed gently to avoid “throwing anyone under the bus” or anyone losing face, you included.

7. Gift exchange

Coordinate the gift exchange before departure, confirming details with your inside contact.

Small, locally made artisan crafts and gifts from your home region are typically well received. Inexpensive, pre-packaged, non-perishable food-items such as local sweets, regional peppers, maple syrup, and chocolates are also good ideas.

Consider books, bookmarks, golf balls and scarves that may not be available in the destination country. Avoid red ink in books and papers. Be sure to bring extra gifts in case you are introduced to someone you weren’t expecting to meet.

8. Time for silence

Brief your team beforehand about having specific time set aside after the meeting for silence and questions. In Asia, it is impolite to ask questions during a presentation. This is viewed as ‘interrupting’ the speaker. The same dynamic occurs during meetings.

9. Avoid product promotions

Before describing your services or products, be prepared to discuss other, general topics. Wait to be asked for your materials, rather than hand them out.

10. Patience

Constant distractions in many Asian workplaces, including cell phones ringing frequently and animated conversations elsewhere in the building, may cause you to feel distracted.

Remember that other cultures have different ways of working. In Asia, businesspeople are very comfortable with constant interruptions and dispensing with agendas in service of important relationships.

11. Humor caveat

Humor is culture-specific, so something that is funny for someone in one culture may draw blank stares or serious looks from those in another culture. Subtle meaning from North American or European humor can get lost in translation in many Asian cultures, and vice-versa.

If you do tell a joke, know that the interpreter may simply tell those present to laugh because the visitor just told a joke that they can’t understand. Which, in itself is kind of funny, right?

12. Gestures

Avoid expansive, sweeping hand movements. Research offensive country-specific gestures to make sure you don’t unintentionally insult anyone. Most Asian cultures don’t gesture with their hands or point with their index finger. Use an open palm facing upward to indicate direction.

Knowing proper international business meeting etiquette goes a long way in opening up new ventures in Asia and beyond. Creating a welcoming atmosphere that is respectful of different cultures and business practices, rather than trying to force Western ideas on others, will go a long way to inspire trust, establish rapport and build long-term relationships.

The post 12 tips for Asian business meetings from an international protocol expert appeared first on Trade Ready.

Economies are more and more global, and so are our customers, employees and opportunities. But that means that our challenges have also gone global. A common mistake is that people want to do [business] exactly the same way they did before. We cannot afford to apply the same local solutions to very different, global, problems. – SAFRA CATZ, CEO, Oracle

Let me put it this way:

The good news is that the exponential development of technology allows many of us access to amazing opportunities. People, products and services are brought together in ways that have never happened before.

The bad news is that the growing interdependence of different regions and communities around the world also has a great potential to produce conflict, ranging from global refugee and financial crises to missed business opportunities.

Why you need cultural intelligence

One of the (still) commonly held beliefs, even here in the highly innovative Silicon Valley, is that doing business across the globe means simply replicating the models that have already brought financial prosperity in a certain country or region. I lost count of how many times I heard or read about how the solution to global business is to clone Silicon Valley in various places around the world.

There is one issue with this strategy: it does not work. A business strategy does not, and cannot, exist independently of the people and circumstances that made it possible. There is no one single way of doing business, and the reason for that can be summarized in one word: culture.

Culture forms the matrix of all human interactions. As social beings, we tend to interact and associate with people who hold similar values, beliefs, expectations and symbols.

It is only normal to prefer the safety of the known, and to reject those with whom we have a hard time identifying. That worked relatively well when the cultures of the world were neatly separated into national, ethnic, and geographical communities, and only communicated with each other in a very slow and prescribed manner.

Technology is blurring geographical borders

Technology, however, is now blurring and even blowing up those lines, by facilitating instantaneous communication and exchanges across geographic borders.

For this reason, being successful in the 21st century business environment requires specific knowledge and a set of skills which we at ICQ Consulting define as cultural intelligence.

A few entrepreneurs and leaders have that naturally. But most of us simply behave (often unconsciously or subconsciously) according to values and beliefs we’ve acquired from our culture of origin.

What fascinates me is how few people, especially people in power, are willing to admit that their choices and decisions are seriously influenced by their cultural values and beliefs.

Of course, in certain circumstances, some of us are able to be more objective than others. But deep down within us are beliefs and symbols that are imprinted, branded at an emotional level. And from there they often dictate how we behave.

If we put this in the global context, we see why cultural intelligence is crucial. Globalization now forces us to interact in ways that we have never had to before. We need to interact not only with businesses from different countries, but also with our own multicultural, multigenerational and multi-ethnic organizations and teams.

We are now trying to acquire and service customers all over the world. In the San Francisco Bay Area, for example, over 135 different cultures live and work among each other.

Diversity + Inclusion = Success

According to Cisco, if a diverse team is managed and trained well, they produce results 6 times higher than homogeneous teams. What Cisco research shows is that not only is diversity important, but that diversity in itself is not enough. What gives diversity 6 times more value is something called inclusion.

Thus, in order to reap all the benefits of diversity, we need to create an optimal inclusion environment. And given the pace of technology and globalization, diversity is not a choice anymore. Diversity has become unavoidable, and that makes inclusion through cultural and organizational intelligence an absolute necessity.

The best way to figure out how to optimize interactions within or between diverse groups is to assess the needs, values, beliefs and expectations of each member of the group.

There are various tools (such as the Intercultural DISC) that assess key cultural metrics, which are even more helpful in an organization with employees who have lived and/or worked in multiple cultures.

Cultural intelligence is a paradigm shift in both business interaction and organizational culture, and it is one of the central pieces of Culture Influencer training.

What makes cultural intelligence different is that it addresses core dynamics of the human psyche. It takes into account not only the differences between individuals, but also the similarities that make us all humans.

How is your business working to build cultural intelligence? Has diversity changed your business?

The post In order to survive and thrive in 21st century business you need to embody this form of intelligence appeared first on Trade Ready.