Background To Business in France
Source: World Business Culture http://worldbusinessculture.com/Business-in-France.html
F
rance finds itself at a difficult crossroads as the cold economic climate post-2008
challenges the viability of the country's traditional social models. With
unemployment running around the 10% mark and many people calling for even
further pro-market reforms, the modernisers find themselves at odds with traditional vested
interests - and these vested interests have been historically highly influencing in shaping both
internal policy and approach to business.
It could be said that two particular elements play a greater role in approach to business in France
than in any other industrialised economy (other than possibly Japan). These two essential ingredients
are the role of the government and the importance of a certain type of education.
The French government has played a central and vital role in the shaping and direction of French
companies ever since the end of the Second World War. Indeed the government, even in the late
eighties, was actively fostering the development of a number of 'national champion' companies
which would be large enough to face up to global competition. One of the interesting aspects of
these interventionist policies is that they have been largely accepted by mainstream business, which
has worked hand in hand with senior civil servants in the ministries.
This level of co-operation between the government and industry has been aided by the influence of
the French education system, which pushes the brightest pupils through a system of elite schools
known as the Grandes Ecoles. Graduates of the Grandes Ecoles tend to enter either large commercial
organisations or the civil service and this educational brotherhood has created an affinity of thinking
across the senior echelons of French business society. It has even been said that the best way to
become a PDG (CEO) of a major French company is through a senior position in an important
ministry.
France remains the 5th largest economy in the world and boasts world leading organisations in
banking and finance, aeronautics and many hi-tech fields.
French Business Structures
French companies tend towards rigid hierarchy and functionality within which system the PDG (CEO)
holds great sway. The PDG determines in a singular way the future direction of the company. This
vision is then disseminated down the line for implementation by more junior management. Senior
management, therefore, tends towards the directive, rather than the collaborative, as might be
found in such countries as the Netherlands or Sweden.
The power often vested in the hands of the PDG obviously adds impetus to a centralist approach,
which is already discernible in many other aspects of French life. Below the PDG will be found a strict
hierarchy of managers, organised along rigidly functional lines of responsibility. (All reporting lines
leading eventually to the PDG.)
To those from a less hierarchical background, this approach often seems to be eminently well suited
for operations which are performing well and producing results. The weaknesses of the system may
only become apparent when problems arise and quick responses are called for. With little buy-in
having been sought lower down the line, a sense of personal responsibility could be found lacking.
French Management Style
Most senior management in most French companies were educated at the Grandes Ecoles which are
the elite schools of France. These colleges champion an intellectual rigour in their students, which is
rarely matched elsewhere in the world. This produces a highly educated management population,
which approaches leadership with an unusual degree of academic precision. 'Intellectualism' is
something to be cherished rather than sneered at and a comment once attributed to French
management was that 'this idea seems alright in practice but will it work in theory?'
Thus, management is an intellectual task to be mastered and thought about in terms of detailed
analysis, the complete mastery of complex concepts and information and the eventual application of
rational decisions. More pragmatic issues of buy-in, motivating staff etc. (in the Anglo-Saxon
understanding of these terms) are not as prominent in French management thinking.
Decisions, once taken at senior levels, will be passed down the chain to lower management for
implementation. This directive approach can be seen, especially by those from a consensus oriented,
non-hierarchical background, as being overly authoritative and lacking in the necessary team-building
elements.
French Meetings
As management style tends towards the directive, meetings can often be more for the dissemination
of information of decisions previously arrived at than for the open debate of perceived difficulties.
They will often be chaired by the boss and follow a set agenda as determined by the boss. In such
formal meetings it would be rare to contradict the boss openly - this will have been done elsewhere,
prior to the meeting in more informal lobbying sessions. If meetings sometimes appear to be a
rubber-stamping exercise, it is because that is what they often are. In such an environment, it is vital
to be actively involved in the pre-meeting lobbying if any influence is to be brought to bear.
Meetings, which take place between peers without the presence of a senior figure, will be more
open and less rigid. Open debate will often be seen in such situations and this debate can often
become heated - especially when people are defending the validity of their own cherished logic. In
such meetings, strong confrontations can often occur which reflect the sense of competition often
found just below the surface at peer group levels in large organizations.
Cartesian logic is at the heart of French thinking and this process introduces the thesis - counter
thesis approach where adversarial debate around a topic is seen as very healthy. This can be seen as
disagreeing for disagreeing sake through the eyes of more consensus-minded cultures.
French Teams
The education system fosters a sense of rivalry and competition from an early age, with peers
competing to pass entrance examinations to gain entry into the elite Grandes Ecoles. A sense of team
working is not encouraged in this process and does not therefore come naturally in later working life.
People prefer to have definable, personal sets of objectives rather than to work in more general
team roles. Thus teams are often defined as sets of specialists working on single issues for a strong
leader.
Teams arranged between functional lines for the purpose of promoting one particular project (as
found in the USA) are often difficult to implement, with loyalties being divided between the project
team and the 'home base' of the team member.
French Communication Styles
The way in which you say something in France is almost as important as what is actually said. There is
a great love of and respect for elegance in the use of language and the sophisticated presentation of
ideas is raised to an art form. A sense of national pride makes it difficult to listen to the language
being spoken badly (or even worse to have to read poorly constructed French!) If you speak poor
French, it may these days be better to do it in English.
Debate in France can often be seen as highly confrontational by those from a non-confrontational
background. In France, the drawing of distinction is almost an intellectual goal - a goal which will help
to move the process forward. Building on similarities is not seen as such a positive.
During discussions, interruptions will often occur, with other parties in the conversation joining in
and emotions can seem to be running high. This animated, somewhat theatrical style is, again,
viewed as conducive to reaching the end results.
The French admire the logical exposition of well defined ideas and when listening can be heard
making such comments as - 'it's not logical', which is a good indication that problems lie ahead. Such
a comment might be more accurately interpreted as ' I don't see the logic of your argument,
therefore I can't buy it.'
Written business French is extremely protocolistic and formal with an etiquette which can seem
anachronistic in translation. However, it is important that anything sent in writing is rigorously
checked, as the ability to produce correct written language is seen as a sign of intelligence and good
education.
Women in Business in France
Women are gaining an increasingly prominent position in French business life - with particularly
strong representation in retail and service industries. Once again, the prerequisite for success as a
woman is to have achieved a suitable level of education.
Some evidence points to less progress having been made in the more engineering-based industries
and that they are less accepted in senior positions outside Paris.
Expatriate women working in France should feel little gender bias towards them and will be judged
on their intellect, verbal skills and technical ability.
French Dress Code
Dress codes vary with position within the company, industrial sector and region in France.
The higher the position within a larger organisation, the more formal will be the dress code with
formal suit and tie being worn. The further south one travels, the more informal business dress
becomes, with open shirt and slacks being the norm.
One thing that is common to all areas and all positions however is the need to appear wellpresented. Casual does not mean scruffy. Appearances are important at all times in France.
Successful Entertaining in France
It is a truism to say that food is important to the French and that business entertaining should be
considered a matter of great importance. Business lunches are the most common form of
entertaining business contacts with breakfast or evening events being much rarer.
Lunch is usually quite a grand affair and will usually comprise of starter, main course and desert
followed by coffee. Wine will also often be served.
The quality of French food is a matter of great national pride and therefore talking about food is a
national obsession. On the whole, you are much better advised talking about the food or other social
issues during a business lunch than talking about business. The meal is a time for cementing
relationships and learning more about each other. Business matters should only be raised during the
coffee.
If inviting French contacts out to lunch, make sure you take them to a good quality restaurant and,
unless you are an expert, let them chose the wine.
Restaurants usually include a 15% service charge but it is still customary to leave a small tip as well.
Tipping is not compulsory in France but is recommended. (10% would be adequate.)