THE NEW RULES OF INTERNATIONAL NEGOTIATION.pdf

8/18/2019 THE NEW RULES OF INTERNATIONAL NEGOTIATION.pdf

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“Catherine Lee’s The New Rules for International Negotiation is a

must-read for anyone who desires to become more effective in the

global marketplace. This is neither a simplistic how-to book nor a

long list of do’s and don’ts. Lee provides you with basic principles

and models to will help you prepare and think through cross-cultural

negotiations. The result will be more productive and successful long-

term relationships.”

—Ken G Kabira, Executive vice president, Lipman Hearne,

former chief marketing officer, McDonald’s, Japan

“I have personally witnessed Catherine Lee’s practical wisdom and

insight as she helped Motorola University prepare professionals for

joint ventures in the global marketplace. This book is a compendium of

invaluable advice for anyone embarking on a trans-cultural journey.”

—Bill Wiggenhorn, principal, Main Captiva,

LLC and founding president, Motorola University

“Do you travel overseas in business? Does your company have part-

ners in other countries? Do you feel sometimes confused about how to

negotiate with people from other cultures? Do you teach international

business? If your answer to any of these questions is yes, this book is a

must for you! Comprehensive approach, firsthand experience, solid

theoretical base, practical suggestions—everyone will find something valuable here.”

—Dr. Krzysztof Gluc, vice president, Wyzsza Szkola Biznesu, Poland

“Carrying her multicultural experience, intuitiveness, and keen

analysis, Lee successfully delivers innovative applicable techniques

and practical behavior adjustments that lead to negotiation enhance-

ment in a corporate and personal setting. The Rules for International Negotiation delivers the message loud and clear: build trust, earn the

right to influence, and negotiate successfully!”

—Hedy M. Ratner, president, Women’s Business Development Center


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“The New Rules for International Negotiation is an important read

for anyone who desires a better understanding of the critical role that

culture plays in negotiating internationally. Catherine Lee has hands-

on experiences and personal successes in using this process in a variety

of organizations and is a strong testimony for the complexity of not

only the face-to-face negotiation process, but the intangible cultural

aspects as well.”

—Tom Menzel, business owner/investor and consultant

“This book is bound to work for people who work in an environ-ment of diversity of cultures. It provides wisdom that can benefit people

who work with people from other countries. It is helpful to read from

time to time.”

—Charles Wang, a business consultant in China


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The New Rulesof

InternationalNegotiation

Building RelBuilding RelBuilding RelBuilding RelBuilding Rel

aaaaationships, Earning Ttionships, Earning Ttionships, Earning Ttionships, Earning Ttionships, Earning T

rust,rust,rust,rust,rust,

and Cand Cand Cand Cand Creareareareareating Influencting Influencting Influencting Influencting Influenceeeee Around the World Around the World Around the World Around the World Around the World

CCCCCaaaaatherine Leetherine Leetherine Leetherine Leetherine Lee

Franklin Lakes, NJ


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Copyright© 2007 by Catherine Lee

All rights reserved under the Pan-American and International Copyright

Conventions. This book may not be reproduced, in whole or in part, in any form or byany means electronic or mechanical, including photocopying, recording, or by anyinformation storage and retrieval system now known or hereafter invented, without written permission from the publisher, The Career Press.

THE NEW R ULES OF INTERNATIONAL NEGOTIATION

EDITED BY K ATE HENCHES

TYPESET BY MICHAEL FITZGIBBON

Cover design by The Design Work GroupPrinted in the U.S.A. by Book-mart Press

To order this title, please call toll-free 1-800-CAREER-1 (NJ and Canada: 201-848-0310) to order using VISA or MasterCard, or for further information on booksfrom Career Press.

The Career Press, Inc., 3 Tice Road, PO Box 687,Franklin Lakes, NJ 07417

www.careerpress.com

Library of Congress Cataloging-in-Publication Data

Lee, Catherine, 1941-

The New rules of international negotiation : building relationships, earning trustand creating influence around the world / by Catherine Lee.

p. cm.

Includes index.

ISBN-13: 978-1-56414-973-2

ISBN-10: 1-56414-973-0

1. Negotiation in business. 2. Cultural awareness. 3. Business etiquette. 4.International business enterprises—Management. I. Title.

HD58.6.L43 2007

658.4’052—dc222007029046

http://www.careerpress.com/http://www.careerpress.com/


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DedicDedicDedicDedicDedicaaaaationtiontiontiontion

This book is dedicated to my dear husband, Timothy, and to my

children Stephen, Andrea, Cassie, and Moira.

To Timothy for consistently giving a positive response to my every

doubt or fear, and to my children for supporting every effort of mine asif it already was a success. And to Quin, John, Cortney, and Andy for

being there with confidence in my work when I questioned its purpose.

Without the caring of each of them, my contribution would be shallow

and meaningless.

Acknowledgments Acknowledgments Acknowledgments Acknowledgments Acknowledgments

To Alicia Karapetian for her editing and support through the unknown.

For their contribution to the snapshots of various countries, I’d like to

thank: Dr. Sharon Badenhop, consultant and professor, Rochester

Institute of Technology; Camilo Escobar, senior manager, BP, Bogota,

Colombia; Dr. Krysztof Gluc, vice director, Wyzsza Szkola Biznesu

[WSB], the business university in Novy Sacz and Krakow, Poland;

Gary Jamison, principal, Jamison Group and affiliate, Japan Intercultural

Consulting; Rasheed Ahmed, vice president, EXENSYS, India in the

United States, Ramonda Talkie, colleague in development of the nego-

tiation process, John Willig, a literary agent who reflects the best in

the negotiating style, and Chang Lu Wang, business consultant, Beijing,

China.


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ContentsContentsContentsContentsContentsForeword 9

Introduction 13

Part I: The Cowboy in a New Frontier

Chapter 1: Crossing the Cultural Divide 25

Close-Up of Asia

Snap-shot of China

Chapter 2: Competition is King…and Queen 39

Snapshot of Japan

Chapter 3: The Gated Community:

Corporate America Lives Here 49

Close-Up of Eastern Europe

Snapshot of Russia

Chapter 4: Superiority Complex:

Sophomores of the Global Campus 73

Snapshot of the United States

Chapter 5: Values: A Matter of Priorities 85

Snapshot of Poland

Chapter 6: Build a Trustworthy Relationship:

The Trust Model 103Snapshot of Hong Kong

Chapter 7: The Business of Good Actions:

Four Strategic Virtues 119

Snapshot of India

Chapter 8: The Charismatic Multi-national:

Lending a Hand to Neighbors vs. Managing

a Business Arrangement 139

Close-Up of Latin America

Snapshot of Colombia


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Part II: Negotiating to Shi

Chapter 9: Crossing the Cultural Divide 157

Chapter 10: Recognizing the Needs of the Other Side:The Fastest Route to Getting What You Need 163

Snapshot of Argentina

Chapter 11: The Mandate: A Blueprint of the Dance Floor 173

Snapshot of Chile

Chapter 12: Common Ground: Cultural and Contextual 187

Snapshot of Venezuela

Chapter 13: Building Trust: Vulnerability and Consistency 205

Chapter 14: A Nation of Superiority: Ask and Listen 219

Chapter 15: John Wayne is Dead:

The Most Difficult Negotiators—From Two Perspectives

(Ours and Theirs) 231

Chapter 16: Verbal Behaviors:

What You Say and How You Say It 239Snapshot of Brazil

Chapter 17: Getting Ahead

of the Cultural Changes 259

Index 267

About the Author 272


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Foreword

9

Foreword

Globalization is no longer a concept. It is a reality that speaks to

the interdependence of countries through an increasing number of cross-

border transactions, capital flows, and diffusion of technology. Busi-ness today is global and encompasses every corner of the world—from

advanced economies to emerging markets.

Executives working in this environment have to be nimble, knowl-

edgeable, and open-minded. Business professionals may wake up one

morning in New York and the next morning in New Delhi. The diversity

of work and growth of cross-border business means that executives

must be prepared to negotiate complex deals with different cultures whose priorities and perspectives differ greatly from their own.

Markets in the United States may pulse to the beat of “time is

money,” but other cultures, such as the Chinese, prefer to take time—

a lot of time—to consider a deal and finalize it. More importantly, the

Chinese want to take time to understand the people with whom they

are negotiating and learn the motivations that are driving the team on

the other side of the table. In such a culture, negotiations are aboutsomething more long-lasting than the signing of a contract. They are

about relationships and respect.


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The New Rules of International Negotiation

10

Too often people focus on the deal that is currently being negoti-

ated and fail to realize that if they get the relationship right, there will

be multiple deals down the road.

Establishing respect among different cultures is essential, particu-

larly in emerging markets. In the end, people buy from other people,

and they usually buy from people they trust.

A confident swagger and self-promotion may score points in the

United States, but, in many parts of the world, humility is the greatest

virtue. These cultural differences necessitate that business profession-

als adapt their approach and show sensitivity to the people with whomthey are negotiating and who they are hoping to call partners.

Today, Motorola generates the majority of its revenues outside the

U.S. While this is a recent phenomenon, it demonstrates that the com-

pany is becoming increasingly dependant on foreign markets and di-

verse cultures for its growth and future.

Global companies, such as Motorola, have an obligation to adapt to

foreign markets and operate, when possible, as a local business thatrelies on local managers for results. Organizational design in different

countries cannot be conceived in a vacuum, and consideration must be

given to the wants, needs, and culture of a particular market.

Increasingly, the world is focused on two dominant emerging mar-

kets: China and India. With each country claiming more than a billion

people and annual economic growth of close to 10 percent, China and

India have truly become the new business frontier. For established North American companies in search of new ventures, these two countries

offer big markets, big opportunities, and big risks.

Although China and India are advancing at rates not seen since the

industrial revolution, they are each struggling with developing financial

markets, legal systems, and corporate governance regulations. In these

countries, the best way to achieve business objectives is to understand

Chinese and Indo cultures, and build long-term relationships.

It is also important for executives to understand that the North

American way of conducting business does not always translate well in

these cultures. The straight-talking, shoot-from-the-hip approach to


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Foreword

11

negotiations that is valued in Chicago or Dallas may come across as

arrogant and defeatist in the boardrooms of Shanghai or Bombay.

This brings me to this excellent book by Catherine Lee, The Rules

of International Negotiation: Building Relationships, Earning Trust, and

Creating Influence Around the World.

A top management consultant and negotiations expert who has pro-

vided senior counsel to global companies such as General Motors,

Milwaukee Insurance, BP (Amoco), and Korea Telecom, Ms. Lee’s

book correctly focuses on the need for business executives to bring

cultural sensitivity and understanding to the negotiating table.This book, which grew out of a series of presentations Ms. Lee gave

to Motorola’s World Wide Management Group, is timely and relevant

given the increasingly global business environment in which people work.

Having been fortunate enough to participate in Ms. Lee’s presenta-

tions and to have read this book, I can say that Ms. Lee injects some

much needed empathy, insight, and thoughtfulness into the realm of

Corporate America. Using a series of anecdotes that are familiar andrelatable, Ms. Lee makes a compelling case for business professionals

to look at the wants and needs of the customer before their own, and to

see people with whom they’re negotiating as human beings rather then

adversaries.

The book looks long and hard at business practices and cultural

priorities around the world including China, where Ms. Lee has spent

much of her professional career and where many U.S. executives in-creasingly find themselves conducting business. The examination of

China draws comparisons to U.S. business practices and negotiating

techniques, and offers some valuable lessons.

They key learnings I took away from this book are the importance

of respecting customers enough to learn about their country, customs,

and culture, and to focus on relationships that will lead to long-term

success rather than a one-shot deal. In fact, without a solid relationship

even a one-shot deal has a minimal chance of success .

I strongly recommend this book, and encourage each of you to keep

an open mind and learn from Ms. Lee’s experience and wisdom. Apart


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from its business teachings, the book contains a great deal of humor,

charm, and practical advice.

As the world becomes more connected and the interdependence of

countries grows, cultural sensitivities will become as valued as a focus

on the bottom line. Globalization will continue to define the world in

which we live and business will become increasingly international. In

this environment, we each have an obligation to understand the people

we work with and rely on for our success.

By Michael Hortie

President of Motorola, Canada


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Introduction

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Introduction

Negotiation is an ever-present aspect of business. Being elected and

serving on the Board of Education for a consolidated school district in

the Chicago suburbs was my introduction into business, politics, and

diversity. The district encompassed 14 municipalities; the Barrington

area, an affluent community; Hoffman Estates, also a most comfort-

able community for young people starting out, educated and skilled

immigrants, and academic professionals; and Carpentersville, a blue-

collar community with a growing, hard-working Hispanic population.

Learning to work with the varied municipalities and with each elected

ego, with the public while being public, and hearing the vastly different

perspectives, made me uncomfortable with the enormous differences

that had to be served or at least answered to. I wanted everything to be

simpler and more categorized, not so threatening as with all those un-

known and nonunderstood differences. If everyone’s need was the same,

it would have been simpler and easier. Sameness seemed comforting

and doable.

Circumstances pushed me back into the paid workforce after a20-year absence. My husband’s (mentor) advice was, “Whatever they

ask you to do, say you can feel comfortable with that, and then come

home and figure out how.” Motorola became my first contract—a three-

day training program for their first level managers. In 1990, after a year


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and a half of work with Motorola, I was asked if I would go to Beijing,

China, to help set up some training. Once again, I thought I could feel

comfortable with that. I knew they must have asked everyone else be-

fore me, but I had the freedom of little work. From that first trip in

November of 1990 my education began, and I ultimately earned an on-

the-job degree through experience in organizational development, train-

ing, and an MBA. My formal background was in the romance

languages—a masters in the arts from the University of Michigan—and

Ph.D. course work followed in medieval literatures at Wayne State Uni-

versity. All my practical education had come from the political arena.

For the past 19 years, in international training and management de-

velopment, I have been able to observe behaviors of businesspeople

from different business cultures and different national cultures. I facili-

tated many executive team meetings and worked with numerous post-joint

venture teams in negotiations and in on-the-job team building—

multi-national team building. My purpose was and is to help U.S.

businesspersons and others of Western culture work more effectively

and more respectfully with the diversity of cultures. This goal kept me

to an intensity of focus and was reinforced by the perspective of a

westerner who values and understands the paradoxical mix of her

country’s business style. Just as a member of a family feels they may

criticize their own family but no one outside it can, I also feel, as a U.S.

citizen and business person, that—I may critique my country but no

one else better do it. Not all United States businesspeople fit into thisdescription—it’s more a reflection of the accepted (not necessarily ap-

propriate) behaviors of our business culture in general.

Traveling to different countries and continents to work, I have had

many lonely hours, especially on weekends, to observe, to listen, and to

interpret. Every airport, hotel lobby, train station, open-air market,

restaurant, and conference room became my laboratory. Occasional

hotel tour buses would affirm the extremes for me. A person’s words,tone, and expression would either influence the other side to respond,

to listen more, or to graciously retreat—or not so graciously shut down.

For 11 years, I observed, noted, and documented. Motorola had trained

me as a behavior analyst, so I had a framework for my data. My partner


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Introduction

15

trained me in assessments and their intended results. It was the best

experience that anyone could have to formalize their learning—first-

hand observation and an opportunity to elicit immediate feedback.

In November 1990, I left for Hong Kong. I was petrified by the

thought of standing in front of businessmen from every different coun-

try in the Pacific Rim and instructing them in leadership and manage-

ment skills. I worried about whether they would understand me, or my

off-center sense of humor. I didn’t know if my woman-ness would af-

front them, or if their cultural bias would offend me. I wanted to be

knowledgeable in every aspect of their culture. I almost couldn’t talk

the first day because my mouth had the dryness of fear, of ignorance,

and of inexperience. Now, I have that same feeling when I have to fa-

cilitate a group of white Americans from the corporate culture. With

the diverse groups, I have the vast lenience of every other culture.

The participants in many of the sessions, if asked respectfully, would

tell me the agenda of a typical workday in their country. Many times in

the cross-cultural groups we would use an agenda from a different countryeach day. It kept change a respectable force in our sessions.

The unexpected benefit was often seeing more clearly the values of

a new and different culture. I worked several times with a group of

software developers in Turin, Italy. I once mentioned I would love to

see the Shroud of Turin. It’s put on display for the public only every 25

years. The year was 2000! A couple of the engineers decided to take me.

By the time word got out, about 27 of them went with me. Afterward, we all went to a restaurant to eat, drink, and discuss the validity of the

shroud as that of Jesus Christ, or of any other man of 2,000 years ago.

I realized later that evening that I was at the end of my fifties and no

one in the group was older than 35 years old.

The engineers had always included me in dinners after work, their

regular Wednesday night parties, and at lunch. I began to see the dif-

ferences in a culture’s values and their priority. Age wore a softer facein Turin, Italy, and young people searched out an older person’s opin-

ion, judgment, and support. Later, I discovered firsthand that age is

honored and loved in China. In China, I was more deserving of their

respect because I was older.


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My interest in another’s culture, religion, and people was the genesis

of new relationships. Their interest in me expanded our understanding

of each other and promoted the relationship. The artificial restrictions

were not there—such as, no expression of feeling, of belief, or of hu-

maneness. It was good to talk about spirituality and art and family. It

was freeing for me, who was used to working in a U.S. business culture,

where everything personal is regarded as not professional except for

competition, aggression, and absolute confidence. A perceived offen-

sive attitude of superiority and arrogance often accompanies a United

States businessperson into the cross-cultural meetings.

My job introduced me to the continents and to numerous islands,

and my schedule allowed me time to contemplate and understand bet-

ter the people. In training sessions such as Motorola’s Manager of Man-

agers, a five-day work session, I had the opportunity to know better the

men and their cultures. They were always eager to help me get better

acquainted with their motherland. The unknown and the mystical of a

culture can be alluring and influential in developing an interest into a

fuller understanding of custom and tradition.

As a grandchild of Russian/ Poilish immigrants I feel close to all

ethnicities, from any non-English speaking country. There is instant,

recognizable, common-ground of feeling and of placement or displace-

ment. I always felt I was the protector of my mother, my grandmother,

or my grandfather. I had to tell people their accent or the way they

dressed didn’t mean they were bad or stupid, just different. I knew“different” was not always acceptable or respected. It gave good enough

reason to exclude someone. This was my original impetus for writing

the book—to bring back a dignity, respect, and value of difference to

my ethnic heritage. From a professional perspective, working in Asia,

South America, Europe, Canada, and Mexico during the past 17 years

identified an urgent business need of my clients—how to be able to lead

in this global market through a negotiating style.Working with a diversity of cultures introduced me to a myriad of

customs, traditions, and foods. Interacting with the individuals con-

vinced me that recognizing these differences is not what would support

building a relationship. A knowledge and appreciation of these differences


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Introduction

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was the beginning, yet the establishment of trust, the basis for a long

term relationship required some behavioral modifications to the United

States style for doing business.

Negotiation is inherent to doing business globally. Today working

side by side with four or five cultures has become the norm—in the

United States and across the world. This study brought me back to a

simple understanding that you can’t change someone else’s behavior.

Being married for 40 years, dedicating every effort to change my spouse,

should have chiseled this in my brain and my heart much earlier. One

can only change one’s own behavior, and we do it many times in a day

depending on who walks in the room or which child in the family we’re

reprimanding.

This book develops within an objective to make you aware enough

to want to change your behaviors as a businessperson, so that you will

be able to negotiate and influence in a veritable global marketplace. It’s

not stating that other cultures don’t have their hang ups in the way they

behave—it’s stating we can’t change their behavior, but we can cer-tainly influence them by changing some of the ways we work with other

cultures, including our own.

This is not primarily a do-and-don’t book taking you through a va-

riety of cultures. Although snapshots of regions and several countries

they house are included, the emphasis is on how to work and negotiate

well with all cultures. The background and cultural considerations of

emerging markets serve as an introduction to the country and its cus-toms. Most important, it is a guideline for how to work within different

cultures, using a universal base for building trust and earning the right

to influence. It doesn’t negate the value of the “do’s and don’ts,” yet it

emphasizes the skills and behaviors that will convince someone to lis-

ten to you. It then includes stories and examples of what will show

another culture that you value their traditions enough to clumsily and

awkwardly bow or read their business card. It’s the “clumsy and theawkward” that are important. This book identifies ways to modify the

accepted U.S. business style to a more universally and respectfully ac-

cepted style in order to better negotiate and influence in other more

mature cultures.


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The book is structured into two main parts. The first half describes

a business style through examples and stories, which matured out of a

culture of free enterprise, and a capitalistic, competitive society fo-

cused on business and sports—both recognized by the money involved.

Many of the aggressive behaviors that are appealing and acceptable to

organizations are not appropriate when working across cultures. In fact,

these behaviors are also rude in this culture, but have evolved into be-

ing acceptable.

The second part of the book focuses on negotiation processes and

the Behavioral Approach Model that targets successful outcomes and

agreements. This model illustrates how a person’s expectations of an

individual create responding behaviors from that individual. Our ex-

pectations are set by our attitudes, beliefs, and values. Four Strategic

Virtues: Consideration, Acceptance, Respect, and Empathy are devel-

oped within practical applications. Voltaire, the 18th-century philoso-

pher, in his Philosophical Dictionary (1764) wrote, “Virtue between

men is a commerce of good actions….” These Virtues become the

processes for assuring success in the practice of the Virtues. Seven

Influencing Verbal Behaviors are highlighted demonstrating how they

build a better style for ensuring the consistent use of the Strategic Vir-

tues. The behaviors reflect one’s expectation of another, and these in-

fluencing behaviors move one toward “confident expectations” or trust,

as defined in this book.

The emphasis then shifts to “how to modify one’s behaviors” to work more effectively with other cultures, build trust, and, ultimately,

maintain long-term relationships. A Trans-cultural Alignment Model is

introduced. The Four Strategic Virtues: Consideration, Acceptance,

Respect, and Empathy are developed within practical applications. The

practice of these Virtues becomes the processes for assuring success in

working across the cultural diversities of the continents.

The Seven Influencing Verbal Behaviors are highlighted in theInfluencing Behaviors Model, delineating the behaviors by definition,

example, and then interpersonal impact and business impact. These be-

haviors become action items you may put into use immediately and see

the positive results of your behavior modification. The model introduces


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Introduction

19

you, the reader, to the most specific and smallest action to work on. The

impact of these small behaviors on the other person is grand. This recog-

nition of behavior and impact gives you something to do now, to generate

change and to influence the other side to move toward solution. Trying

to change your attitude or belief takes a lifetime, whereas changing your

own behavior or expectation of another can be immediate and could even-

tually have a positive effect on your attitude or belief.

The New Rules of International Negotiation focuses on the behavioral

aspect of negotiating. Behaviors include both the planning and the strate-

gic parts of negotiating. Behaviors are a strong part of strategy; in fact

they often determine the effect of your strategy. In essence, asking, sum-

marizing, and building become the rules for successfully negotiating. These

influencing behaviors also solidify a style for working well in most busi-

ness and social interactions. There are two standard rules that are con-

stant and determine your level of success. The first rule is a consistent

practice of the Strategic Virtues—“commerce of good actions,” which

design the framework for trust. The second rule is to use the Influencing

Behaviors, the specific, small verbal behaviors become a strategy for

maintaining trust and building relationships.

Close-Ups and Snapshots of the

Highlighted Countries

The following regions have been targeted to highlight in the book.

The countries were selected because of emerging markets in those ar-eas. They are:

Asia

China

India

Korea

Japan Hong Kong

Eastern Europe

Poland

Russia


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South America

Colombia

Venezuela Brazil

Chile

Argentina

United States

I have worked around the world and I have observed many richly

different cultures. It has taken me 17 years to note well the classical

norms of principles and values, and the exclusivity of cultural traditions

and customs. It is difficult to isolate and recognize every country’s dis-

tinctions in culture, just as it is for me—a born citizen of the United

States. The north, south, east, and west regions each have distinguishing,

cultural characteristics. If I described one area as common for all areas,

I would probably be wrong 75 percent of the time. Whatever I present

about the countries, it is only a small piece of who they are, gleaned from

my experiences, which further influences, one way or the other, the gen-

eral statement of culture. It was easier for me to find the commonalities

(such as common ground in a negotiation), get comfortable with what we

shared, and then move together to an understanding of our differences.

Once we got on the same side of the multicultural table, I could pursue

the differences, discover their distinct values, and then together choose

the best solution for the issue being negotiated. The benefits of the pro-

cess were worth far more than the initial investment—peak in productiv-

ity, better relationships, and more long-term business.

Every country has a culture exclusively its own—a culture rich in

traditions and customs, that, when understood, can show different val-

ues, strengths, and purposes. To work in a collaborative effort requires

an understanding of and appreciation for these cultural differences. It

also requires the flexibility to use the others’ strengths when the situa-tion is conducive and appropriate (or when the situation is low risk and

perhaps not the best, but is worth forfeiting the best for adequate to

show a willingness to do it “their way” to fortify the relationship).


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Introduction

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Many of the suggestions that are given for how to work better with

those in one country are appropriate and effective when working with

many countries, including the United States. These suggestions are given

on the assumption of sincerity. For example, one of the suggestions

given for Colombia, South America: citizens are proud of their coun-

try, so compliment it. That would work for most countries. If you com-

pliment a country for its natural beauty and substantiate it with a specific

accolade, such as, “Bogota’s mountains and flora make it appealing

year round” or, “Your weather keeps one motivated year round.” Your

sincerity is felt. If you tell them, “Great country you have” or, “Nice

country, seems to work well with so many different people” could be

considered as patronizing. “Your accent is much easier to understand

than many I’ve heard before”—ouch!! Sincerity stops you from being

or from sounding patronizing. When you want to appear appreciative

or accepting, it is easy to fall into sounding patronizing. Avoiding gen-

eral statements and repetition of statements could prevent a perceived

insincerity.

Though I single out certain expectations of one country, the same

expectations could easily apply to other countries. Having it become

part of your demeanor could benefit you across the globe. The premise

of this book is that the Influencing Behaviors, which are delineated and

defined in Chapter XVI, are strategically effective across all continents.

Recently, I was delivering a presentation to the Council of Supply Chain

Management Conference and I took them through these behaviors andrelated how they affect the different cultures. Why a summary and a

paraphrase are appreciated by audiences of different languages. One of

the attendees then asked, “I understand how these behaviors would

help those whose first language is not English, now which behaviors

would work in the United States?” I then realized I had not fully ex-

plained the values or the affects of the behaviors. The behaviors influ-

ence human beings no matter the culture in which they lived. Thebehaviors uphold Respect, Consideration, Acceptance, and Empathy in

all countries, and are not exclusive to any culture. The Four Strategic

Virtues transcend all cultures and the Seven Influencing Behaviors sup-

port the virtues.


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The cultural considerations I present in the book, introducing cer-

tain chapters, are my observations. I formed opinions based on what I

frequently observed, on what others (including natives of their respec-

tive countries) related to me, and on everything I read prior to going to

work in any of these countries. The considerations do not describe ev-

eryone in that country, just as the John Wayne style does not describe

everyone in the United States.

I interviewed individuals who live, and some who worked and lived,

in the respective countries as a resource for my information. I also

used two main resources for confirmation of what I observed and vali-

dation of those observations. They were:

University Alliance, Superior Online Learning

Executive Planet.com—“Let’s Make a Deal”

Kiss, Bow, or Shake Hands: Latin America, by Terri

Morrison and Wayne A. Conaway, 2007

Kiss, Bow, or Shake Hands: Europe, by Terri Morrison

and Wayne A. Conaway, 2007

NOTE:

When commenting on a specific global area or country, it is usually

in generalizations—general comments, not personal absolutes. Please

keep in mind that situations, individual social styles, circumstances,

and interpersonal dynamics influence every exchange socially or in busi-

ness. There is no category of behavior that describes everyone.


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Foreword

23

Part I:

T T T T The Che Che Che Che Cowboowboowboowboowboy in a Newy in a Newy in a Newy in a Newy in a NewFrontierFrontierFrontierFrontierFrontier


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Crossing the Cultural Divide

25

Agenda

CHAPTER 1:Crossing theCrossing theCrossing theCrossing theCrossing the

CCCCC

ululululul

turturturturtur

al Divideal Divideal Divideal Divideal Divide

“It’s an outlook, an attitude.”

—John Wayne

Two waist-high, cloisonné Chinese vases filled with fresh flowers

welcome guests into the meeting room. Inside, sculptured works of art

are positioned proudly on enormous pillars on either side of the break-

fast tables.

Woven silk art lines the floor. Chinese rugs in magnificent colors

exhibiting a history of traditional beauty and in a legacy of workman-

ship cover the floor on which I dare walk. Deep reds and burgundies,accented with varied shades of blue in a centered circle, burst into an-

cient designs to a border of twisting leaves—a work of carpet art. The

expectation of the regal ambiance is one of respectful decorum. It has

an air of importance that only Hong Kong could posture without words.

A. Small social courtesies with large business impacts.

B. Barriers that prohibit relationships.

C. Image—whose image is the right one? Mine or Theirs?


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Thirty-two businessmen from all over Asia gather in this large con-

ference room, seated at round tables, waiting for the morning’s session

to begin. An assortment of sweets and savories fill gilded gold and red

trays in complex and appealing geometric design, perfect in spacing

and color. Angular and round pastries stuffed with varied sweet bean

pastes are outlined by sprigs of violet and pastel pink orchids. It is so

exquisitely presented that I am, at once, confident the taste will match

the perfection of the display. Meat-filled pastries and skewered beef

pieces extend an aromatic welcome with a mystifying arrangement. The

scent alone pulls everyone to the table.

Both the room and the food make the participants of this American

Corporate Leadership Seminar feel valued. It is an environment invit-

ing conversation and camaraderie. The men talk about family, current

events, and business. As the program begins, attendees exhibit a fo-

cused attention, astute listening, and a somewhat guarded willingness

to participate. Small group breakouts help illicit more contributions

and the interactions become productive in outcome.By midday the men are feeling comfortable with each other and

accomplished in their involvement. I turn to face them to begin the last

activity before lunch. As I look out into the group, I notice three men

boldly picking their noses. In fact, they are making a dedicated effort

to the capture. They sit militarily, straight-backed in their chairs, at

attention, heads held level and high, looking straight at me with their

fingers industriously digging. Their attitude seems professional in allother regards, and even a bit defiant. Our eyes meet, and they don’t

even flinch. They continue. I can’t watch. I look away embarrassed.

They continue. I can’t guess what they ultimately did with their “find.”

These men manage multi-million dollar operations. They are atten-

tive and focused. They are targeted to succeed. They are well educated,

smart, and considerate. They are nose-pickers. No one else seems both-

ered by this activity. Perhaps the others could not see them.I set my line of sight on the Chinese vases in the back of the room. I

am disgusted, embarrassed, and arrogant. How gross for an adult man! I

consider it insulting. I begin to look at those three men with a different


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27

feeling. Where is their breeding? The remainder of the day, I can hardly

talk with those men. It is the beginning of an almost two-year resistance

to learning about the Chinese culture and valuing its historic differences.

Why? I never left my own cultural frame of reference.

It’s shameful to mention that nose picking could influence me into

a destructive bias. To judge a person’s value on an American custom of

“polite” contradicts every value—and business instinct—I have.

Almost two years after the first of several incidents, a Chinese col-

league of mine explained to me that the Chinese do not believe picking

your nose is polite or impolite. It has never been a consideration of theirs. No Chinese child ever heard, “Don’t pick your nose” or, “Go

get a tissue.” The Chinese do not share a code of behavior or manners

that compliment our proprietary system. It’s not part of their culture.

It’s not even considered.

Social rules such as: “Don’t pick your teeth at the table,” do not

apply. In China, a hand covering your mouth while the other hand cleans

the teeth with a toothpick is most acceptable. In the United States,meals are dished out with serving utensils, but in China food rotates on

a lazy Susan and each person uses his or her chop sticks to pick up

pieces from the main serving platter. It’s nothing in China to clear your

throat or nose at the table. It might happen stateside, but it’s certainly

not appropriate.

The Chinese find it rude and intimidating when someone consis-

tently looks them in the eye, whereas, we, here in the United States, donot trust someone who doesn’t look us in the eye. We consider them

“shifty,” dishonest, and insincere. Also, a person in China must refuse

an invitation to pay for dinner several times before accepting it, but in

the States it varies.

One perceived misbehavior becomes a barrier to building a good

relationship for doing business. Many times, I judged another’s compe-

tency based on American etiquette standards and not on his perfor-

mance or idea. I questioned a person’s expertise based on his style of

picking his nose. He certainly could not be as “smart” as someone who

didn’t pick his nose in public. I often thought that a nose-picker could


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28

not be good in sales because he’s insensitive to others needs. He would

be offensive and, thus, destroy potential coalitions. I questioned his

ability to manage, much less lead: Leaders do not pick their noses.

The impact of this bias, bigotry, and ignorance costs an organiza-

tion. An individual, annoyed or irritated by another’s behavior, builds a

barrier that is difficult—sometimes impossible—to work around. We,

as humans, make judgments based on our idea of what “civilized” means.

Our judgments and perceptions toward “uncivilized” behavior gener-

ate disrespect, close-mindedness, and distrust. We begin to act as if the

“offending” individual is incompetent or unreliable. These expectations

impact productivity, outcome, quality, time, deadlines, and, eventually,

the entire workplace environment. Decisions based on missed misun-

derstandings come at a high cost to an organization and generate a lack

of commitment. With respect pushed aside, assumptions begin to de-

termine assignments, and production slows.

For that period of time, I was the judge. I only considered my own

perspective. I determined that Chinese businessmen are strange be-cause they had unexpected habits. I scrutinized their actions, but I also

thought of my way as the norm. I thought, perhaps, they were being

quiet while they were looking at me—the stranger—because they wanted

to be like me.

I never left my own cultural frame of reference.

After working with the Chinese from 1990 to 1992, however, I fi-

nally came to a realization: I was the outsider, the stranger—strange inlooks, carriage, clothing, and language. They sat in the judge’s seat and

my behaviors were being assessed by the Chinese standards.

Define Culture

According to Webster’s Unabridged Dictionary, the definition of

culture is “the behaviors and beliefs characteristic of a particular so-

cial, ethnic, or age group.” Culture embodies the rules that regulatebasic patterns of behavior. They are the “shoulds” and the “should nots”

of any group living in the same country, practicing the same religion, or

of the same nationality. These “rules” create parameters or natural bound-

aries that make the people living within that culture feel comfortable.


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29

One of the outcomes of these rules and regulations is inclusion or ex-

clusion. Culture could be developed through neighborhood, religion,

ethnicity, profession, or common interest.

A business culture is much the same. Merriam-Webster’s Collegiate

Dictionary says a business culture is “the set of shared attitudes, val-

ues, goals, and practices that characterizes a company or corporation.”

Group behavior and beliefs are key components of a business culture.

These “shared” attitudes become visible indicators of the “shoulds”

and “should nots” of that work environment. For example, walking into

corporate headquarters of a company usually reflects a more formal

and cautious attitude versus a branch that is out in the field where it

could be seen as more friendly and inviting. From the way a reception-

ist greets you to whether an executive offers you a cup of coffee, you

can determine revealing parts of the work culture. Countries are the

same. What can make you feel foreign?

Be the ForeignerBe the ForeignerBe the ForeignerBe the ForeignerBe the Foreigner

On a November morning in 1992, I was in the railway station in

Beijing. I had just finished giving a seminar and had to be in TianJin, in

the industrial zone, to give another workshop the next day. There was

an unexpected snowstorm and I couldn’t get to my destination by car.

My driver took me to the train station and instructed me to get a re-

served seat, and then he drove off, leaving me alone with a million other

people.Colossal and bleak, the station was a cement palace. It was packed

with more than a million people, but the silence was deafening. People

rippled 15 abreast subtly and smoothly through the corridors, as if their

feet didn’t even touch the floor. They systematically filled every inch of

space, and the undetected order was disturbing.

I began to look for a familiar face, yet I knew I would recognize no

one. I tried to make eye contact with someone—anyone—but their eyeslooked past me. I desperately wanted to make eye contact so perhaps

someone could help me find the ticket office. No one would look at me,

but I could feel their stares when my eyes shifted.


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30

I was the only westerner in the station. Standing 5 feet 7 inches tall,

with dishwater blonde hair, my arms full of bags and pulling a suitcase,

I was neither subtle nor quiet. The wheels of my suitcase rolled heavily,

clanking across the cement floor like a tank moving in to attack. Feel-

ing more and more like the “other,” I walked faster, but the sounds of

the wheels became even more intense, almost symphonic. The heat of

embarrassment rose within me, but not a head turned. As I looked for

an information area, I realized I could see across the entire mass of

standing people. It was as if I was standing in the middle of a classroom

of young children and by size alone, I was the designated teacher. My

usually confident carriage was being challenged by my confusion, frus-

tration, and fear of missing my seminar.

My appreciation of China made me forget that I looked any differ-

ent than they do. I did not think about my ever-changing yellow hair or

my square-jawed, first-generation Russian face. I had large feet, con-

spicuous hands, and an impatient habit of crossing and uncrossing my

legs while moving my hands in uncontrollable repetition to smooth my

wrinkled raincoat. The entire process made me look like a nervous horse

circling and waiting for the race to start. I looked at the people in front

of me and on the side of me: delicate and small, dark hair, wrinkle-

free skin, gently moving with a noncombative presence. I became aware

of their fascination with my appearance and, of course, with my very

presence—my very foreign presence.

Examine ExclusionFeeling foreign damaged my confidence. My exterior excluded me

from the group of one million. No word was exchanged, no thought or

idea expressed. I just didn’t belong. I began to lumber rather than walk

with purpose, my posture caved into the pressure of certain stares, and

my confidence fell reflecting the discomfort of being different.

This change in a person’s attitude and actions happens in the workplace when an employee is made to feel strange or different and just

doesn’t fit in. The exclusion reduces his confidence and promotes a

feeling of inferiority. The individual is less likely to extend his efforts.

Productivity and quality are directly impacted by this perceived loss of


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31

value and integrity. One’s skin, clothes, accent, and mannerisms can

each exclude an individual from a conversation, a meeting, or even busi-

ness negotiations all together. The exclusion from a business culture

limits an employee from reaching his full potential, and therefore limits

the resource for the organization.

There is no universal standard for the superficial, yet there is for

the depth of a person. They are foreign to us and we are foreign to

them. My perception of myself was just that—a presumptuous percep-

tion. Corporate, capitalistic arrogance convinced me that our way was

the only way, the right way, and the best way. It led me into thinking

that everyone would want to be us, look like us, and live like us. This

attitude of superiority sets up a barrier that tells others that any differ-

ent way of doing or acting is inferior to our way of doing or acting.

Without asking or without exploring, we decide who fits and who does

not. We judge based on our criteria and then try to make up for it with

respectable excuses: “She’s so difficult to understand. I don’t want to

embarrass her,” or, “He gets so emotional. He shouldn’t present at this

meeting.” More common is the remark, “He has to get more aggressive

if he wants to be heard.”

The United States has often been called a melting pot, but we want

everyone to jump into that pot and come out looking American. The

definition of barrier is based on exclusion versus inclusion. A barrier

limits access to information, to being together, to a facility, to a meet-

ing. Outward appearance often limits access and social habits. Thesebarriers can create confusion, misunderstandings, distrust, and a break-

down of communication. Understanding the barriers can afford oppor-

tunities for working together while focused on reaching the targeted

outcomes and negotiating the best solution for both sides.

Our ultimate goal is to build strong relationships that are grounded

in trust. Identifying barriers, understanding the differences, and, ulti-

mately, valuing a different way of doing, results in an influence of strength. Picking a nose or seeing only from my perspective, limits my

access to the best of solutions and to quality and timely implementation

of those solutions.


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32

Arriving at a strong awareness of differences creates a discomfort

that often produces a willingness to change the situation. These initial

chapters help build that discomfort of “what is,” and then the later

chapters will address “how to” change in order to have better working

relationships and “how to” negotiate effectively with the new global cus-

tomers and partners. As an assertive American businesswoman, I often

speak in the absolute. The Chinese frequently begin to respond to a

question with “it depends.” The premises and conclusions asserted in

the next several chapters should each begin with “It depends”: It de-

pends on the circumstances; it depends on the situation; it depends

on the traditions; and, most importantly, it depends on each, distinct

individual.

Close-Up of Asia

In the June 28, 2006 issue of Working Knowledge for Business Leaders

(a weekly newsletter for business executives put out by the Harvard

Business School) an article titled, “What the New Asia Means for

Multinationals,” stated that “[I]n the Asian competitive environment

of tomorrow, it won’t be enough for the managers of Western multina-

tionals to be able to think global, act local. The reason is that being an

expert at taking a global business formula and adapting it to a local

market largely ignores the opportunity to take learning from a local

Asian market and apply it to reshaping the company’s strategy across

Asia (or for that matter, the world).”

This excerpt from a Harvard Business School article pinpoints the

essence of succeeding in Asia—recognize and learn from the excep-

tional business practices of local businesses so that you can use them

across your global market. This strategy will keep you competitive with

the rest of local Asian businesses who will capture the best practices of

other locals. This was written in 2006, and that “tomorrow” is now.

This centers on the controversial discussion of whether it is a trend ornot. Will the way of doing business remain the Western way of doing

business?

Asia is an enormous continent that includes major markets—China,

Hong Kong, Japan, Korea, Taiwan, and India. Unlike North or South


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33

America, Asia hosts a wide variety of languages, races, religions, and

distinct cultures. Though the countries hold some commonalities in

values, they have very distinct business styles and individual customs,

traditions, and behaviors—from passive to assertive.

Chindia: How China and IndiaChindia: How China and IndiaChindia: How China and IndiaChindia: How China and IndiaChindia: How China and IndiaAAAAAre Revolutionizingre Revolutionizingre Revolutionizingre Revolutionizingre Revolutionizing Global BusinessGlobal BusinessGlobal BusinessGlobal BusinessGlobal Business

Edited by Pete Engardio Senior Writer, Business Week

China’s growth and manufacturing dominance are two of the big-

gest global trends of the last 10 years. India’s technology, service, andoutsourcing industries make it a valued partner, as well as a formidable

competitor. The stunning rise of China and India makes it clear: to

survive and thrive in the new global market, you have to engage with

China and India.

All of Asia places relationships as their top priority in doing busi-

ness. In fact, in most Asian countries, trust is more important than the

quality and durability of the product. The relationship is more importantthan the final agreement. The countries share this same value, yet they

do not share it with the same degree or intensity of trustworthiness.

Generally, Asian countries consider meetings as an opportunity to

get to know you and better understand who you are and what your

organization represents. Many times the real negotiations begin after

the agreement is reached or the contract is signed. Trust is established

and the relationship initiated—a good assurance of beneficial outcomes.Harmony, which essentially is the objective of negotiation, is the goal

of every Asian country and “saving face”’ is the guideline. So it appears

appropriate to continue to negotiate after you have reached the agree-

ment. Working within this goal of harmony, Asians will often acknowl-

edge with a “Yes” or a nod of approval, without meaning “I agree,” but

only meaning “I see.” This cultural consideration reinforces planning

effective, Open and Innovative or Experience-based questions and notthe Closed questions that require a yes or a no.

When negotiating with your Asian clients, it is best to use the initial

meetings to get to know them. There are three major guidelines to follow:


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34

Ask them first—ask background questions, both personal and business,

come over-prepared with support data, and observe and listen with a

focused intensity to words and actions. Know who will be attending by

name and authority. Patience and “saving face” should set the tone for

the exchange. Knowing your Asian clients and their products, as well as

them knowing you, is the beginning of a long, beneficial relationship.

Snapshot of China China is a major player in today’s global market. Believed to be the

oldest civilization, its prehistory dates back 12,000 years (the Neolithic Age). China’s population is now close to 1.5 billion, and the predomi-

nant language is Mandarin. Today the Communist Party governs China

from Beijing, the capital, but, the communist constitution does allow

freedom of religion. The majority of people in China follow the Analects

of Confucius, which is more of a philosophy as opposed to a religion.

Confucius spent his life dedicated to learning—learning how to be-

come a benevolent, virtuous man. A small portion of the Chinese popu-lation (about 20 percent), follows the teachings of Buddha. In fact,

some Chinese only follow Buddha’s teachings as a safeguard, just in

case the Buddhists are right.

China also has a long history of dynasties and emperors—beginning

with the Xia Dynasty about 1994 B.C.E. and ending with the Manchu or

Qing Dynasty, which ruled from A .D. 1644 to 1912. As the dates indi-

cate, the dynasties historically endured. Chairman Mao Zedong broughtcommunism to China in the late 1940s.

China is a collectivist culture valuing relationships, the group, and

its members, and counters the individualist thinking of a democracy.

The following list is not an absolute statement of good or bad, right or

wrong, or effective or offensive. It does not describe every person in

China who embodies all of these characteristics. Instead, the list de-

scribes “what is.” The businessperson who determines how best to work within a different culture is the one who will be effective and efficient,

building the relationships needed for long-term success.


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35

Ask open questions. Order or insist.

Give specific guidelines. Criticize.

Expect reliability and

competency.“Tell” (ask instead).

Compliment sincerely and

specifically.Copy a superior in e-mails.

Clarify/Summarize/Ask. Ask, “Do you understand?”

Include socially and

professionally.

Exclude from lunch, information,

and so on.

Include early in problem-finding

and decision-making processes.

Think of a nod as a sign of

agreement or understanding.

Read business card immediately

and make comments.Project attitude of superiority.

Show interest in their history, art,

and way of doing business.Only be aggressive.

Mentor. Assume.

Affirm/acknowledge their input.Disregard how you

say something.

Express an interest in their

family.Constantly look them in the eye.

Show a recognition of their

background. Give casual feedback.

Begin work sessions with inter-

personal exchanges.

Start a meeting, conference call,

or discussion with “time” as the

key issue.

DO DON’T


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Cultural ConsiderationsCultural ConsiderationsCultural ConsiderationsCultural ConsiderationsCultural Considerations

Relationships are the foundation of the Chinese culture. Relation-

ships, either within one culture or across cultures, involve many as-pects of a person. The Chinese person is there to support others. It is

easier to build trust from the beginning than to try to undo what’s

been done before. If you establish an ineffective relationship—or one

of necessity—it is even more difficult to change it into a trusting one. It

is better to start building trust from the first encounter.

Decision-MakingDecision-MakingDecision-MakingDecision-MakingDecision-Making

Collective decision-making takes more time and is recog-

nized. Decisive could be considered deliberative in China.

Decisions are weighed as strongly by feelings as by data,

much like the Latin American cultures.

In hierarchical tradition, the decision-maker generally will

not speak directly to the project manager of the other side,

nor will all of the decision-makers meet at the same time.

The top-ranking authority will take time to hear all the in-

put of those working on or impacted by the negotiation.

Chinese colleagues who have not developed a good relation-

ship may intentionally not cooperate at work. This becomes

an issue of respect and trust.

Building RelationshipsBuilding RelationshipsBuilding RelationshipsBuilding RelationshipsBuilding Relationships

Saving Face is fundamental to the Chinese.

Challenge and/or confrontation are avoided at all costs for

the sake of harmony.

Time taken to gradually build a relationship with managers

is well invested.

Generally, the Chinese prefer to not touch. Know the background, education, and experience of the

managers.

Strong, aggressive behavior is often seen as disrespect.


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37

The Chinese will shut down or retreat and take their time.

The Chinese highly value humility—no self-praise; it must

come from others.

Interest in Chinese art, history, and land builds and main-

tains strong relationships.

It is appropriate to give gifts to an organization and, at times,

to an individual. Red and gold signify good fortune and long

life.

Age is honored and highly respected.

Once a relationship is established, you may ask almost any-thing of your colleague.

Loyalty is a guarantee.

These cultural considerations and those on the previous pages were

collected from interviews, questionnaires, and focus groups. The

Chinese participants were businesspeople who have worked in Chinese

and U.S. companies/corporations. This information took 11 years to

compile.

Chinese Companies/BusinessChinese Companies/BusinessChinese Companies/BusinessChinese Companies/BusinessChinese Companies/Business

Managers become managers because of years of service or

because of the relationship with their supervisors.The Chinese

are very sensitive to titles and status.

The majority of Chinese companies are still government-owned. Individuals have no sense of ownership.

Time is not a priority in the Chinese culture.

Skill and knowledge alone are not reasons for promotion.

A common Chinese perspective is “work well and speak less.”

The Chinese have little training in customer care, manage-

ment skills, and processes or efficiency.

The top priority of Chinese companies is “good relation-

ships.” Second is solving technical problems, followed by

training.


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Managers value communication, even when there is no busi-

ness issue to address. They value face-to-face discussions

on a regular and frequent basis.

Find the Chinese manager who has the most experience work-

ing with the United States and ask for assistance.

Chinese companies still operate under China’s “planned

economy” culture, not “free enterprise.” Their management

sense is deeply rooted in the past.

The Chinese do not have a sense of Western management

style or process. They do appreciate Western processes. Motivation for a Chinese professional is job recognition and

advancement/promotion.

The Chinese do not yet understand the concept of ownership—

the growth of the company helps them progress—because

their income is not yet high and training is limited.

Americans focus on the bottom line. The Chinese focus on

keeping people employed.

To build a relationship takes time, but while you’re building

it there are many benefits. Once it is established, it is a long-

term commitment and is valuable to any organization.


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Competition Is King...and Queen

39

Agenda

CHAPTER 2:Competition Is King...Competition Is King...Competition Is King...Competition Is King...Competition Is King...

and Queenand Queenand Queenand Queenand Queen

A. A society led by business and sports

B. Vulnerability and empathy put “competitive” in

jeopardy.

“We must scrunch or be scrunched.”

—Charles Dickens,

Our Mutual Friend , 1865

Round up time—corral those creatures and brand them the U.S.

brand. Don’t stop until you get them all.

Mountains, oceans, and rivers are natural barriers that often create

boundaries and distinguish different cultures. These cultural borders are

easily identified and offer concrete options for working across borders.

When a customary way of doing business is introduced, the acceptedstyle and attitude can also put up a barrier to building a trusting relation-

ship. The John Wayne style—to conquer, to win, to defeat—often influ-

ences Western business interactions. It is a cowboys-and-Indians attitude,

and the cowboys must always win. To compete becomes: to win or to


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lose, to rule or to serve. The idea of a winner or a loser often is the

established platform for a global exchange. We compete for jobs or for

advancement in sports and in possessions. The winner gets to make the

rules. With U.S. companies in China it becomes, “Do it our way.” The

business culture presides and dictates the way to do business.

Capitalism validates our competitive posture, but it also keeps us

from being vulnerable in needed relationships with foreign partners.

We feed our aggressions so that we can lead. Being competitive and

aggressive is good—these characteristics help us secure the customer.

Yet a respectful balance of competition with collaboration, leading by

serving, will help us retain our customers. A pow-wow with peace pipes

could be introduced in the negotiation sessions, supporting a peaceful

agreement. Every negotiation builds the steps to the next negotiation

and the next agreement, with the same players. Keeping the process

open and receptive produces an excellent environment for problem-

solving. When a negotiation is more competitive in tone and coercive in

strategy, it takes more time to implement the agreement. This posture

also limits your opportunity for a long-term relationship because, for

our foreign partners, trust is questioned.

In a successful family business, you cannot easily get rid of the im-

mediate family—each member works from a personal sense of honor.

Besides, they’re family. The members are vulnerable and trust that one

another will not take advantage of their vulnerability. This trust facili-

tates working with the external customer in an effective, efficient, andproductive manner. In this type of business, the family views every cus-

tomer as earned. When his or her needs are well-served, it creates a

loyal and long-lasting customer. While this case is both familial and

professional, the commitment supports the organization and, in turn,

the organization freely rewards its relatives.

In 1991, I was giving a five-day work session for production-plant

managers, primarily in the Pacific Rim. These manufacturing facilitiesexcelled in quality, cycle time, and customer satisfaction. There were

31 participants, 30 men, and only one woman, S.K. Her factory ranked

the best overall. The participants knew her plant performed the best

and this knowledge created a guarded atmosphere in the work session—


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Be Open to Gain Trust

The problem is competition can easily keep one in an adversarial

posture, without vulnerability and, therefore, without trust. To Americans,divulging a weakness lessens any competitive advantage—making vul-

nerability counter-competitive. But to divulge such a weakness is a vul-

nerable declaration of trust. Essentially, you believe that the other party

will not use it against you.

At the beginning of my marriage, it took us three years to expose all

of our warts—physical and intellectual—trusting the other would still

love. When one party is willing to say, “It appears we lose time usingthe current system,” in negotiations, people move into problem-solving

mode. I have witnessed it. This simple statement says, “I trust you can

and will help me.” It also implies that you will not use this against me.

To think of long-term relationships and results, one has to balance

the competitive personality with the benevolent confidence of a strong

partner. It requires astute strategic planning and a commitment in poli-

cies to a long-term plan. The organization’s support gives credence to

the values reflected in the plan, and an employee can then confidently

and strategically reveal a need. A relentless competitive posture often

comes across as ruthless and arrogant. similar to any sport, it is a race

to win. Lily Tomlin said it best when she declared, “The trouble with

the rat race is that even if you win, you’re still a rat.”

It’s difficult to partner at your partner’s expense and without trust.

Negotiating with other cultures adds another dimension, which often

requires a consideration of difference in approach and in exchange. To

begin the negotiation with a strong command of need and of require-

ment could push the other side to retreat or to resist—either of which

results in wasting valuable time.

Ego-centered, cutthroat, self-seeking, guarded, superior—hang some

of these adjectives on varied members of a group and the result is ri- valry at best and war at worst. It blocks creativity, listening, and ob-

serving. In the global market, these attitudes restrict the use of cultural

differences to the advantage of each side. We must discover the right

way to do business and negotiate in a specific culture, and how to support


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a long-term plan, rather than doing everything possible to be certain

the negotiation is done “our way.”

Competitive posture is part of how we do business. But it is more

important that we remain aggressively competitive in product develop-

ment, and to seek out new business in a principled and collaborative

manner. It is similar to the thinking of politicians who state, “I am

fiscally conservative, and socially more moderate.” Keep competition

to the product and collaboration to the relationship. How we do busi-

ness across cultural barriers requires more of a family-owned-business

process in order to develop the long-term relationships needed to con-

tinue to compete.

Within the global client arena, businesswomen appear, at times, to

be more effective. Many cultures, including the United States, breed

women to develop and maintain relationships. Maintaining relationships

is one of the determinants of business success as we know it. It will

determine the difference between satisfaction and retention of our glo-

bal customers. When negotiating, often one party suggests that he orshe has more value to offer and more money than the other party,

thereby suggesting that he or she has more power. There is a distinc-

tion between a competitive posture and a confident presence: one pro-

motes the self and the other promotes ideas and solutions.

But the guidelines for how we do business are standard for all cul-

tures, because they’re dependent on Four Strategic Virtues: Respect,

Acceptance, Open-mindedness, and Empathy. Our research showed thatthese virtues are universally valued, and, in fact, are essential to every

good relationship. A Chinese businessperson might admire a shrewd

American businessman if he is, at the same time, principled in his crite-

ria for doing business—in essence, building a strong foundation for

trust. If you bow just the right way or hand your business card with

both hands you’ll be invited into the house. If you show the respect for

their time, their opinion, and their arts, you’ll be asked to stay for thefirst of many meals.

In 1998, I had been working with a joint venture of a large American

corporation and a Chinese partner. The joint venture was conceived in

1989, and the facility was not yet built. Chinese regulations, at the time,


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required foreign business to include a Chinese joint venture partner that

was invested at least 20 percent. I worked with the joint venture team

representative of both partners. The American group felt they held all

the power because they had the most money invested. By extension, the

Americans thought their opinions, plan, and suggestions for implemen-

tation were more important than all others—80-percent more important.

Respect was a commodity they owned, because of all the money

they invested. The venture was nine years old, and the factory was not

yet built. I tried to convince the American vice-president that the Chinese

partners could help facilitate the process because they were politically

well connected with the government and the town council. The politics

were very important because the town’s mayor decided if the zoning

board would allow the project. Eventually, the Americans learned that

one of the Chinese executives on the joint-venture team was related to

the mayor. The American team leader had been too focused on saving

money and time.

He could not understand that in China, roles and relationships area top priority and link directly to the bottom line. For the American, he

assumed playing hardball would meet the success it had so many times

before this. Leadership changed several times in the nine years and

each new manager brought with him or her, an arrogant ignorance that

pushed the negotiations back further. It was 10 years before the joint

venture contract and implementation was completed—one year shorter

than the average Western and China joint venture at the time.

Talk. Don’t Tell.

Every time the leader of the U.S. contingency told the others what

had to be done and by what date, the Chinese felt the disrespect of his

edict. As one of the Chinese managers told me, “They give us orders

and then expect us to obey.” Whenever the U.S. group said they were

wasting time—and dollars—they disrespectfully ignored the Chinesepriority of value.

Telling them versus asking them what their approach would be de-

layed the purchase of land for several months. The Americans criti-

cized the slow, deliberate, and confusing ways of the Chinese instead of


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looking into their culture to understand the reasons for their way of

doing things.

It’s difficult to have a partnership within a joint venture without

respect. The competitive attitude, because of its intensity here in the

United States, seems to permeate every business issue and activity.

Partnering is key to a successful joint venture and its base is respect,

not winning at your partner’s expense.

Competition, aggression, and politics are three powerful resources that,

if appropriately employed, will bear a well-synchronized organization. In

team sports, individual players and their talents are key to winning thegame, but winning isn’t possible without teamwork. Many times business

opportunities are missed because they have to be negotiated with contribu-

tions from the other side, the other culture. Aggression is valued more

than compliance, and the short-term bottom line more than the long-term,

valuable relationships. If the negotiation process encourages the relation-

ship, long-term results become part of the process. If negotiation behav-

iors reinforce the value of a diverse point of view or build on the suggestionsof the others, both sides can implement a better agreement.

Practicing the Four Strategic Virtues results in a modification of

behavior that assures long-term success and personal development. The

competitive posture, many times, leads to a bearing of superiority, be-

cause you must be better or best to win, while a competitive talent or

product can bring attention and notice to a beneficial solution.

Snapshot of JapanJapan is a small island of great strength that protects its culture from

the strong influence of foreign cultures. Generally a more reserved cul-

ture, Japan’s position in the Pacific Ocean has allowed it to remain aloof

when it comes to other cultures. Its language is Japanese and is spoken

only in Japan. The country’s form of government is a parliamentarian

democracy with a prime minister who serves as the ruling officer.

With the Japanese you must build credibility during a very long

time—perhaps two to three years. As your credibility increases, it may

bring you into the inner circle—a private culture.


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because the Japanese see the United States as a “take ac-

tion” society. The Japanese business community does have

to have every contingency possible drawn up when planning.

When they “agree to consider your idea,” this does not mean

they agree with you. Instead, it means they will consider it

and more than likely disagree with you.

The Japanese are consistently thinking long term.

It takes a long time to build credibility with the Japanese.

You must never mislead and always be forthright even though

the Japanese are not always forthright with you. You mayslowly build layers of credibility with consistent honesty.

Language is also a matter of pride or losing face. They pre-

fer everything to be written in Japanese, and they often work

with translators. The Japanese have a need for perfection

and often can be self-conscious about their English. Also,

they often use a translator so they have time to think of

their answers, even if they speak English. Use the simplest,most direct terms, especially with a translator. Do not use

slang, colloquialisms, or acronyms.

The Japanese businessperson is more reserved, proactive,

and very persistent. They are also aggressive, but don’t want

to appear aggressive.

Saving face is an important social and professional consid-

eration. It is also the subordinates’ responsibility to find a

way to save face for the hierarchy. Feedback should and will

not be given in front of anyone or a group.

NegotiationsNegotiationsNegotiationsNegotiationsNegotiations

The Japanese do not like surprises and try to avoid confron-

tations. In order to save face and respect authority, they

frequently have the meeting before the meeting, nema washi.

Many times the CEO, president, and another officer of the

company will meet before a scheduled board meeting to re-

solve any contentious issues and reach consensus.


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To assure zero surprises, the Japanese prefer information in

writing, in advance. They like as much information as possible—

the more, the better. Including an executive summary would

be considerate of those on the team who are not Japanese and

possibly irritated with too much data.

The Japanese strategy, sitting opposite a shoot-now-talk-

later Westerner is silence, and it usually does work to their

advantage.

The Japanese are consensus-builders, so they take every

opportunity to interact with their customers. They seek moreand more in

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