CROSS-CULTURE BUSINESS PROTOCOLS Bribery page 2 Delegations p3 Gift-giving p5 Greeting p7 Hospitality p9 Meetings p11 Negotiating p12 Presentations p14 Two excellent websites loaded with information about working abroad: http://www.transitionsabroad.com/listings/living/resources/expatriatewebsites.shtml http://www.expatinfodesk.com/expat-guide/resources/websites/ 1 #1. BRIBERY PROTOCOLS Bad for business seRvice rendered legal Infrastructure Backed by government Exploitation Respect Get to Yes BAD FOR BUSINESS Only in the long-run (probably). The people you bribe come & go, so the “grease” network has to be continuously update & renewed = increased risk. At some point, greedy “outside-the-circle” people turn on each other. SERVICE RENDERED Compensating for legal institutional paths to conducting grassroots business transactions, as supported by the USA Foreign Corrupt Practices Act. Services beyond this point are questionable for USA corporations. LEGAL INFRASTRUCTURE America’s Foreign Corrupt Practices Act (FCPA) for USA corporations legalized bribes paid for the “facilitation of business” in foreign countries on grounds that failure to do so would hurt the competitiveness around the world, where bribery is a way of life in weak institutional nations. Don’t get too “holier-than-thou” about foreigners who accept bribes. Remember, the campaign contributions received by American politicians are legal bribes (because politicians do “favors” for their campaign contributors. BACKED BY GOVERNMENT Governments often look the other way at bribes received by their corporations, because of the highly profitable nature of international business. This is especially true for private government defense contractors (makers of weapons and their delivery systems) in major Western nations, who often supply weapons to “proxy” nations abroad, who back Western foreign policy. EXPLOITATION Bribery ultimately is exploitive, because it is such an integral part of nationalism around the world—nations benefit when their companies benefit. RESPECT Many people in all nations tolerate business bribery because of its financial benefits to their domestic companies, employees, and economy—the end (employment of locals) justifies the means (bribery). GET TO YES Bribery works best when handled in a professional, respectful manner just like any other business service. Even the U.S. government views it as an acceptable cost of doing business globally. 2 #2. FOREIGN DELEGATION PROTOCOLS Director non-Emotional fLexible Experienced Gracious Around Teamwork Informal cOoperative coNsistent Social DIRECTOR The #1 purpose of your delegation’s director (leader) is to help both delegations end up with a win-win business partnership. The director also speaks officially for your delegation and empowers delegation members to do their best work. The director has the final say within the delegation but must defer to the organization for final approval. NON-EMOTIONAL As a general rule in formal cross-cultural situations, strive to avoid all hand gesturing; Avoid facial expressions as much as possible; Avoid using humor; Use a vocal style steady in pace and volume. When in front of an audience, slow down physical movement 30-50%. FLEXIBLE Strive to be as flexible as possible in all dealing with the foreign delegation, short of compromising your delegation’s central mission. Be flexible in negotiating decisions; The timeframe for issue-by-issue progress; The timeframe for ending the negotiations. EXPERIENCED Not only should the key members of your delegation be experienced in cross-cultural business processes, at least one member should be experienced in dealing with the specific culture you’re currently engaging. Experience is needed in both “hard” and “soft” negotiating tactics; Attaining win-win outcomes; and “making plays” on the spot without benefit of careful planning and preparation. Ultimately, cross-cultural play-making savvy is the only measure of experience. GRACIOUS In cross-cultural business, avoid negatives such as these as much as possible: No; You’re wrong; That doesn’t make sense; That’s a bad offer; You don’t understand; That’s ridiculous, etc. Always invite or suggest instead of demanding. Express thanks to everyone who facilitates progress. Neutralize bravado (bragging, showing off, praising) about your company, nation, or product/service. AROUND Be around for the other delegation; For the key people in your delegation; For social networking and bridge-building opportunities; For the advance prep work; For the work everyone else dodges. TEAMWORK 360 communication (hearing regularly from all levels of an organization) in all the activities of you delegation; No lone wolf operators in your delegation; Willingness of delegation members to sacrifice for the overall mission; Willingness of members to step outside their niche and areas of responsibility as needed; No interpersonal games. INFORMAL Relaxed in cross-culture activities; Accommodating; Available; Dressed casually (as for an outing) COOPERATIVE Helpful; Open to diverse options; Consistent in what you agreed to do; Social and interactive; Flexible and open-minded 3 CONSISTENT In cultural protocols; Emotionally; In follow-up on responsibilities; In interacting in a positive/harmonious fashion; With what you say/do SOCIAL Available; Friendly; Gracious; Interested and interesting; Accommodating; Self-disciplined; 4 #3. GIFT-GIVING PROTOCOLS Generous officIaI proFessional Timing wrappinG hIdden equal Value explanatIon Nationalized presentinG GENEROUS Do your homework on what type of gift to expect from the foreign delegation; Use cheap “gimme” gifts (logo caps, T-shirts, pens, etc.) only for unplanned informal social occasions, and be sure to bring more than you anticipate needing. OFFICIAL The gift should be presented by the leader of your delegation aided by assistants as needed. Explain if the gift is personal or to be kept by the company. Do advance homework to know how many leaders of the foreign delegation expect to receive a gift, and if the value of the gift should match the hierarchical level of those receiving it. Also know the “pecking order” of presenting gifts. PROFESSIONAL Is the gift intended for professional or personal use? (Different presentation protocols are required for each of these two options.) TIMING The entire delegation should be present and on time in the gift-giving ceremony. The host nation presents their gift first. All acts of gift-giving hospitality should be spontaneously applauded (and in China, the main recipient of the applause should applaud back). In Japan, determine if the gift is meant to be opened in public or private. Have an attendant at your elbow, ready to provide instant help to smooth out the presentation process. Avoid asking questions about the gift your delegation received. Any questions you ask could be misinterpreted as subtle criticism or ignorance of the host’s nation or culture. WRAPPING Have a professional wrap the gift in Japan, as the presentation of the gift is considered to as important as the gift itself. In other nations, wrap the gift in a highly professional manner (subdued coloring, high quality wrapping paper, and perfect placement of decorative items on the package). HIDDEN Keep the gift out of sight until time to present it—you may have to modify your gift in some way such as price (depending on the value of gift your delegation receives). In Japan, personal gifts are traditionally opened in private to avoid embarrassing either the giver or receiver if the gifts weren’t of equal value/quality. EQUAL VALUE It is a good idea to have more than a single gift ready in case the one you receive is not well matched in value, quality, or traditional design with the one you anticipated giving. EXPLANATION Immediately after the foreign delegation has opened the gift(s), explain the positive purpose/use/history of the gift to show off its uniqueness and memorability. Then comment on the “goodwill” represented by the gift(s): a symbol of the enduring partnership between the two companies/nations; the mutual respect each delegation has for the other; etc. It’s generally best not to talk about gifts exchanged after the presentation ceremony—too much “face” is on the line. 5 NATIONALIZED Nationality (pride in culture, history, geography, government leaders, etc.) is the most common theme/symbol represented by crossculture gifts. Nationality gift themes go a long way in building goodwill and mutual respect between nations. When receiving a nationalized gift, always express (hopefully genuine) interest and enthusiasm for the nation and culture involved. PRESENTING You must know in advance the gift-giving ceremonial protocols of your host nation: Officials involved in the ceremony; Stages of the ceremony; Your delegation’s ceremonial responsibilities, etc. Normally only the top one, two, or three host company executives play a role in the ceremony, and the same counterparts of your delegation are expected to reciprocate—“eagles with eagles.” 6 #4. GREETING PROTOCOLS Gifts Respect Etiquette Explain Talk in their language Identities Notify aids & assistants Gameplan GIFTS In most cultures, exchanging business cards is the formal first step in the greeting protocol, with exchanging gifts as the second step. RESPECT Business card ceremony (at least in Asian cultures): Don’t stick the card in your pocket (have at least a small leather holder for them); The exchangers should both vocalize their names and company job titles. Delegation “eagles” (top executives) should be matched up to greeting their counterparts in hierarchical order. Consider having aids take photos of each greeting for use on social media sites. Be prepped in advance with a professional compliment to give each person as you greet them and go over their business card. Use “courtly” (like entering your college graduation commencement exercise) body language in the greetings ceremony—not a hurried workaholic’s brush-off approach. ETIQUETTE It is the host nation’s role to initiate the greeting process, but be prepared in advance to follow their protocols in order to minimize uncertainties and miscues. Try to have your eagle entourage already informally lined up in hierarchical order to make it easier for the host delegation to gracefully work though their interpersonal greeting protocols. EXPLAIN Try to say a pre-prepared greeting phrase or two in the language of your host. Strive to bring your job title alive to your greeters by briefly explaining what you do in your company. Also give a 30-second, slowly spoken, description of what your company does, and/or present each person who greets you with your company’s latest annual report or other basic information. Also ask each greeter a basic question about their company and their role in it. If possible, also hand out a digital, computer-read business card that excels in bringing your job and company alive to the hosting delegation. TALK IN THEIR LANGUAGE Three or four phrases is a high octane interpersonal bonding technique. Consider phrases such as: “I am honored to meet you.” “Our company is happy to be here.” “I am so happy to visit ____ (name of nation). It is a wonderful place.” “Thank you and your company for hosting us.” IDENTITIES Always wear a first class name plate when conducting cross-cultural business: Easy-to-see/read font; job title; phonetic pronunciation of your name. Strive to carry both traditional business card and also a digital “card” for a marketing overview of you and your company. When exchanging names with others, always pronounce their name (as best you can) after they rattle it off to you. After you pronounce your name, immediately repeat it half speed, and say in their language, “Please call me ____” (your first name). Always carry two first class business card holders: one for your cards, and the other for cards you receive. Try to read off your card’s information to your greeter and also the info on their card. NOTIFY AIDS and ASSISTANTS of… As many DOs and DON’Ts as you can think of for inter-delegation behavior protocols and responsibilities; and of your hour-to-hour schedule (via email several times a day if necessary) for each day of the delegation visit. Let them know when you most need their assistance and how. Thank them, praise them, reassure them, compliment them, and positively reinforce them for the work they do on behalf of you and the company. GAMEPLAN Practice your greeting techniques in advance of the real thing. Use a resource person (perhaps a consultant provided by your company) to coach you on doing a superb job inter-culturally. Try to locate someone in your company or city that is from the nation your 7 delegation is visiting and take them out to lunch for their advice. Practice, practice, practice your foreign language phrases looking at yourself in the mirror or video. 8 #5. HOSPITALITY PROTOCOLS Home-based bOnding wholeSome non-Patriotic Interesting Team-building relAtionships Localized relaxIng Togetherness Yeast HOME-BASED Never “wing-it’ when planning and engaging in business hospitality—cultures are too complex to “put your best foot forward,” only to trip over it. Get culturally-specific advice from a consultant used by your company. When you’re hosting a cross-cultural delegation in your own “backyard,” remember that you are selling not only your company and its employees, but also your nation, state, and city. It’s easiest to be most hospitable at home, so take maximum advantage of what your local area offers to share with your cross-cultural guests. BONDING Bonding begins in an impersonal way via fact-gathering about the company and nation you are going to host. Two basic types of bonding exist: one-on-one professional relationship building (a bridge of professional trust + respect) and networking with groups via dialogs between delegation members sharing similar jobs. Bonding experiences excel most when encounters are authentic: transparent, win-win, and well planned. WHOLESOME Cross-culture hospitality should be woman-friendly and family-friendly; Non-exhausting, non-stressful, and non-complicated. Malebonding only hospitality should be avoided, especially in Western cultures. NON-PATRIOTIC Cross-culture hospitality must remain values-neutral via side-stepping exposure to patriotism, religion, nationalism, vices, and crowds. INTERESTING Business-related hospitality comes from the use of excellent graphics (both still and moving) undergirding meetings, presentations, and discussion handouts. External hospitality (see “togetherness” below) doesn’t have to spectacular (such as theme parks or white-water rafting); most people find experiencing a different culture the most interesting aspect of any business trip. TEAM-BUILDING Via serving the foreign delegation together and viewing them as cross-cultural business partners RELATIONSHIPS As a general rule, it is best to maintain professional relationships only with members of foreign delegations. This especially true for Anglo-Saxons doing business with personalized (favor-exchanging) business cultures (Latin, African, Middle Eastern). Since AngloSaxon cultures rely on impersonal institutions for most business transactions, exchanging favors with people from non-institutional cultures could possibly raise ethical concerns. LOCALIZED A company’s home base is the easiest place for bonding, because you’re more relaxed there, and everything you need is there, including your company’s physical facilities. And most of the hospitality venues and logistics are already there, set up to go. 9 RELAXING Good hospitality relaxes those being hosted, and if done well, even those doing the hosting. Those in the foreign delegation don’t have to fix meals, clean up afterward, or worry about getting up early and staying up late. But even the hosts can be more relaxed when lots of “go-for” assistants are standing (or running) by. Hotel amenities are also relaxing for both delegations. TOGETHERNESS Familiarity sometimes breeds contempt, but not when there’s good hospitality around: people sharing meals and language, entertainment, decision-making, and a common future partnership. Ultimately the two cultures must share a common business mission and outcome. YEAST For bridge-building; Exchanging favors; First-name basis relationships; Pleasant memories; and cultural appreciation. 10 #6. MEETINGS PROTOCOLS Match Etiquette Explain Translators Innovative wiN-win Get together Status MATCH Especially in etiquette-intensive Asian cultures, it is important to match “eagles with eagles” (hierarchical ranking of executives) at the meeting table. For example, in China, the highest ranking executive customarily sits in the seat most directly facing the main door to the meeting room. In Germany, technicians (especially engineers and computer gurus) are valued as highly as executives, so Germans may request that their technical team be seated together. Other candidates for special seating may include interpreters (close to the executives they most translate for), special aids (often errand-runners), and honorary guests (such as the founder of a company). ETIQUETTE Etiquette-conscious Asian companies may request precise meeting protocols for the order of speakers in the meeting; Clear instructions for how voting will proceed; Meeting agenda management rules; And even correct etiquette for aside conversations while others are presiding at the meeting. EXPLAIN All of the above protocols must be clearly explained well in advance of the meeting to avoid any “surprises” (especially in Asian cultures) once the meeting begins. TRANSLATORS Translating is more of an art than a science, because languages can’t be translated in a literal, word-for-word way. Different cultures put human thoughts into different phrases, and it’s the cross-cultural meaning of these phrases that must be conveyed by translators. A number of challenges and issues can make translating a tough go: Mediocre translators who are too generic to do justice to cultural subtleties and nuances; Translators who “editorialize” (put a subjective spin on the meaning of the party being translated); The need for a “back-translator” in your delegation to detect inaccurate subjectivity; The need for on-the-spot written translations; Translators who are hard for native language speakers to clearly/quickly understand. INNOVATIVE One of the best ways to make meetings less boring/routine/stodgy is to innovate in ways that freshen up the minds and emotions of the participants: Towards the end of a meal, have some low-key fun, such as keeping a balloon floating around the room as long as possible); Passing out unexpected gifts (logo souvenirs; business card holders; toiletry kit; a new cell phone, etc.); Have everyone place pins on a global map showing where they were born; Pull some of your homeland’s favorite candy out of a hat. Also, strive to dress up the technology used in the meeting areas via easy-to-get-to microphones; A variety of digital communication devices (laptops, tablets, cell phones, etc.) for people to use if needed. WIN-WIN Look for opportunities to compromise in negotiations in ways that help the foreign delegation but don’t really harm yours: Table (delay for a different meeting session) hard-to-resolve thorny issues; “Celebrate” via toasts, photos, smiles and applause positive events/breakthroughs (agreements, compromises, creative problem-solving, etc.). GET TOGETHER Meals; Refreshment breaks; Entertainment venues; After-hours socializing; Becoming acquainted with different people as often as possible for meals, tours, and meeting breakout sessions. STATUS Status can be positively upheld/communicated in a variety of pre-planned ways: Seating; Speaking order; Greeting protocols; Special attention via limousine transportation, elevators instead of stairs, larger hotel accommodations, special entertainment venues, etc. 11 #7. NEGOTIATING PROTOCOLS Needs > wants Emotion Lose to Gain PriOrities Time Information Alternative phrasing Toughness CompromIse Neutral gain Gamble? NEEDS > WANTS Set descending negotiation outcome levels (such as Ideal, Good, Acceptable, Unacceptable) for every strategic issues pursued by your company: Contracts; Profit projections; market share; Impact on stock price; Return-on-investment; Impact on company image; future business growth opportunities, etc. EMOTION Discuss acceptable parameters of acceptable emotions (display of feelings; body language; communication energy; anger control) in advance of the negotiations; Agree in advance on a protocol for holding members of your delegation accountable to the agree-upon emotion parameters. LOSE TO GAIN Prep in advance for negotiating sessions what your company is willing to lose to attain a gain you are pursuing. Gains always come with losses. PRIORITIES First set priorities for the overall, long-term outcomes your company desires from a cross-culture negotiating encounter: Priority for developing a permanent business partnership with the foreign company; Shorter-term outcome priorities; Company growth/expansion; Annual profit impact of the foreign partnership; New competitive strengths your company seeks via the partnership, etc. Set these priorities along the lines of what your company wants to gain most, second-to-most, etc. Then set a priority level (A-B-C) for attaining each descending level of gain. Also think through the most likely priorities of the foreign company. TIME How much do you want to accomplishment in a day, week, month of negotiating? How much time are you willing to invest in negotiating before tabling it? How much time are key members of the negotiating team willing to spend IN sessions? How much time will it take your company to adequately prepare for the negotiations? INFORMATION Doing your homework for the negotiations: 5WH: Who, What, Why, When, Where, How. You must perform the 5WH analysis for both your company and that of the foreign delegation. ALTERNATIVE PHRASING The Asian tradition of “screened” communication, strives to neutralize word and phrases that might upset interpersonal harmony. Negotiating language can be screened via the use of alternate phrasing designed to convey a positive-sounding message. Common negotiation-speak words to screen out include: disagreement; unclear; confusing; insulting; impossible; no; never; wrong; misunderstood; miscommunicated; doubt. Typical negotiating phrases to screen include: We’re concerned about…; How do you know? Who said that? That won’t work; That’s unfair; Are you sure? That doesn’t make sense; and the infamous, We don’t do it that way back home! 12 TOUGHNESS The tougher you are, the less you’re looking for win-win results. Cross-culture business negotiating isn’t war; it’s building a solid bridge between different companies in different cultures to achieve different outcomes. Negotiating toughness is no substitute for intelligence, mutual respect, preparation, experience, or savior-faire. COMPROMISE Compromise is your friend and ally in the short-run if it facilitates achieving your long-run mission. Intelligent compromise is the best PR tool going, because it reflects the universally-respected attitude of open-mindedness, respect, and cooperation. Before negotiating begins, your delegation should carefully prepare and rank-order a list of short-term compromises it is willing to make. It should also prepare the decision-making protocol to follow in determining when to compromise, based ultimately on how much the possible compromise would jeopardize your long-term cross-cultural mission. NEUTRAL GAIN Your delegation should define what it is able to do to benefit the foreign delegation that won’t damage your home company. These make excellent “sweeteners” for negotiating progress. Many times these sweeteners are more a low-cost service nature (like free shipping) than high-cost product components. GAMBLE? Smart, well-prepared business professionals don’t have to gamble on negotiated outcomes. Gambles are avoided by competence, strategy, leading from strength, and knowing when to “fold the cards.” 13 #8. PRESENTATIONS PROTOCOLS Positive Rehearsed Emotional control Seen > heard facE No ideology Talk Audience Thanks Informal Organized fuN Selected POSITIVE Positive words, phrases, meanings, body language REHEARSED In front of the mirror, computer screen (or your video), co-workers, and the translator EMOTIONAL CONTROL Hands still; Physical movements slowed; Face smiling; Steady voice in pace and volume; No laughing SEEN > HEARD Plenty of catchy graphics on the screen and in the hands of the audience FACE Carefully screen out all words, phrases, and meanings that could possible insult anyone in the cross-culture audience NO IDEOLOGY Nationalistic, political, economic, religious, or historical Talk Short, Slow, Stimulating, Sit down AUDIENCE Informed, Influenced, Interested THANKS To the audience and its culture, the translators, and your assistants INFORMATIVE Convincing the foreign delegation that their company will benefit by partnering with your company ORGANIZED What you said, when you were supposed to, what they heard, while the agenda was being followed NEUTRALITY Non-ethnocentric, non-political, non-ideological, non-religious, non-historical 14 SELECTED To be right and relevant for that audience, culture, and company 15