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When doing
business in China, a familiarity of some of Chinese business culture
will no doubt help you get a better result than you do otherwise.
The followings are some advice from those foreign business managers
doing business in China. Although some of them are overstated, they
overall are helpful to those who are on their first business trip
to China.
In general,
managers coming to China should ratchet up their sense of formality
without becoming stiff--the key concepts are respect and professionalism,
not ceremony. These simple ideas will help in guiding an executive
through any strange situations, advises Frank Luijckx, director
of IS for Europe and Asia-Pacific for the global polyethylene and
hydrocarbons product lines at Dow Europe SA in Horgen, Switzerland.
Decision
Making
The
biggest specific difference between Western and Chinese business
culture is in decision making. Quick decisions are alien to the
Chinese. Rapid decision making, incorporating quickly gathered and
processed information, is a sign of an aggressive, highly competent
manager in the West. But to the Chinese, haste is the sign of an
idiot.
The Chinese
prefer to deliberate longer, even on decisions that might take Western
managers five minutes, says George Koo, who has facilitated joint
ventures between Chinese and Western companies since 1978 and is
currently a senior consultant at Meridian Resources Associates Inc.
in San Francisco. Discuss the issue, ask for feedback and explain
your decision's rationale, he advises. This way, the staff will
be more accepting and respectful of the decision.
The Chinese
want to be included in the decision-making process at a degree of
collaboration that to a Western manager may seem unnecessary for
relatively simple points but is nevertheless important in this culture.
"A snap decision to them is an insult," adds Richard Loi, a Singaporean
who is managing director of the UPS Parcel Delivery Co. in Beijing,
United Parcel Service of America Inc.'s China joint venture. "They
want to feel honored that you bring issues to them and ask what
they would do. Even if you think it's a simple decision, mull it
over and talk to them about it." The results-buy-in, compliance,
good feeling--will be worth the extra effort.
When "Yes"
Means "No"
It's practically
a clich¨¦ that Chinese people do not like to say no in a business
setting nor admit that they don't understand something. Unlike in
the United States, where we've been told since grade school that
there are no dumb questions, the Chinese have not been encouraged
to express puzzlement. Misinterpretation of these cultural norms
by a Western manager can undermine the effectiveness of an IT department.
Winferd Tsai,
DuPont Co.'s IT manager for Greater China and a veteran of Hewlett-Packard
Co.'s well-regarded operations in Taiwan, understands the nuances
of the Chinese affirmative response. Often when a manager explains
and assigns a task to a staffer, the person will respond, "No problem,"
Tsai says. Sounds reassuring, but that answer may be a product of
the cultural tendency toward politeness and reluctance to disappoint.
A "No problem" usually means "I'll try." Tsai warns, "You will still
need to do a lot of follow-up with them. They also may not tell
you if things start going wrong."
The Chinese
people's desire not to disappoint also manifests itself in a technical
perfectionism that may mire an IT project. Trying to make everything
technically perfect, the IT staff will come up with a thousand reasons
to delay a project, regardless of the deadline, Tsai says. "You
have to balance that and try to get them to focus not just on technical
perfection but to think from the customer's perspective and the
realities of business."
Because they
have not been exposed to the Western business culture that allows
for risk taking and mistakes, "We have to work with them side by
side, give them encouragement and show them that mistakes are acceptable,"
Loi says.
Personal
Style
The Western
mode of teaching, which encourages students to question and challenge
the instructor, is unknown to the Chinese. In China teachers lecture
and students dutifully take notes--no exchange is heard. For a Western
manager attempting to instruct IT troops or train users, this silence
can be unnerving. The Chinese must be urged to ask questions and
interrupt, says Meimei Fox, a Meridian Resources consultant. Providing
material in advance gives staff a chance to review a topic and think
of questions. It will also help put as much of the information into
visual form as possible. This not only helps overcome language barriers,
it plays to the Chinese tradition of pictorial representation. Fox
also advises her clients to emphasize hands-on training to encourage
the Chinese, who are strong theorists, to connect theories to applications
in the real world of business. Above all, don't feel that it's condescending
to repeatedly explain a new concept, direction or process. It's
the best way to ensure understanding and compliance, according to
several Western managers and consultants in China. "The people are
intelligent and proud, and they will adapt to processes if they
understand why they are being done," says Ian Shiers, president
of Polaroid Asia Pacific International Inc.
If a hard-boiled
Western manager publicly chastises his Chinese employee, he may
as well write his ticket home. It is an unforgivable offense to
cause a person to "lose face." A public slight, such as passing
someone over for an anticipated assignment, can be a relationship
killer.
IT innovation
in China is still very much technology driven, as opposed to business-process
driven as it is in the West. A new-style CIO from the West, with
a strong business background and only a working knowledge of technology,
will not fare well in China. The people are eager to learn leading-edge
technology once they are persuaded of its value; therefore, they
expect their managers to be technologically adept. That's the reason
many Western companies view the Taiwanese as a good choice among
expatriates to take technology management positions in China. "The
young generation here knows and respects Taiwan's ability in technology,"
says Elwood Chen, the Taiwanese corporate systems project manager
for Aetna Life Insurance Co. of America's new venture on the mainland.
"IT managers from Taiwan are mostly technical people, and they have
been successful here and win a lot of respect." (See "Betting on
Expatriates")
Fraternizing
after business hours may be becoming increasingly uncommon in the
don't-do-or-say-anything-that-can-get-you-sued environment of the
West. In China, gaining staff loyalty and peer support depends on
breaking through the professional formality to form friendships.
The Chinese expect a boss to be a leader both inside and outside
the organization, says Meridian Resources' Koo. That means organizing
social events for office personnel. Favorite activities include
Dining (formal
banquets, lunch or dinner at outstanding restaurants)
Bowling
Karaoke nightclubs
Picnic outings
Soccer matches (But leave your golf clubs at home. Koo says golf
is still tainted by bourgeois connotations because of its waste
of valuable land.)
Connections
The business culture's high regard for relationships applies to
people outside the company as well as inside. In fact, the very
viability of a business depends on relationships with vendors, distributors
and, most important, the municipal, regional and central government
ministers whose disfavor can cripple a company. Entire books are
written on this art of the relationship, known as guanxi (gwan-zhee),
or connections. Guanxi can take the form of a night of karaoke with
the local fire department regulator in order to get a new computer
room plan approved. Or it could mean hosting a banquet with a customs
official to make sure precious hardware shipments arrive at some
point in the 20th century. At the highest levels, it could mean
bringing your CEO to China to shake hands with the minister of a
key industry sector that represents lucrative potential business.
Although it
is vital for a Western manager to understand the necessity of external
relationships and the role of guanxi in China, the actual act of
relationship building is best left to the ethnic Chinese on the
staff. For one thing, they will more quickly understand the expectations
of Chinese power brokers; for another, they have a lifetime of cultural
habits that will enable them to handle delicate situations with
more aplomb than a Western manager ever could. "A white face can
throw off the dynamics," says one American IT manager. "There is
a barrier there, and you can only go so deep in terms of a relationship."
If it sounds
as though there are many cultural land mines in China for the Western
manager, take heart. In a couple of areas, Westerners, particularly
Americans, have an advantage over their Chinese counterparts. One
is directness. Although the Chinese can be notoriously indirect--they
struggle to read the subtle signals in their bosses' manner and
body language to interpret their desires--"they appreciate the Westerner's
straightforward approach and ability to break the ice," Fox says.
So don't worry if you feel the need to come right to the point.
It will be appreciated.
The second advantage
Americans enjoy is that the Chinese expect them to goof up. The
staff will cut an American more slack and be more forgiving of cultural
miscues than they will a Chinese manager or expatriates from Hong
Kong and Taiwan. But that's not license to be cavalier; it just
means you get a little more rope before you might hang yourself.
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