Wednesday, 16 December 2009

Think 'local' when doing business abroad

Many a contract has been lost by not knowing how things are done locally. If you do business abroad, you need to have an understanding of how meetings are run out there ... and why.

The Western way is to start with a sliver of small talk, and then to get on with the agenda. It's well documented how Americans have flown abroad to do the business, sign the contracts, and get off home before the day is done, only to find that the locals cannot (will not) move so fast ... unless the Americans make big concessions!

It is equally well known that Arabs and other Easterners take offence when they are expected to get down to brass tacks before they have had the chance to develop a relationship of trust. So what's the best way to approach business meetings with cultures that differ from your own?

In some countries in Africa and Asia, formal meetings take a long time and frequently seem to achieve nothing - nothing that is obvious to the Western eye. It is their custom to allow and even encourage everyone present to say something on every topic that arises, even if what is said is hardly worth the breath.

It gives each person present a sense of self worth and is, in effect, a confirmation of their right to be at the meeting. It's an affirmation of status, even if the decision is eventually made by the senior person present, no matter what anyone else might say.

To get the result you want, you must be patient and fit in with the local ways. Find out what the purpose of the meeting is, and who are the really important people there. It is better to err on the side of generosity, and give a person more respect than he may deserve, rather than less.

The former may lose you nothing, while the latter may lose you everything.

PKP

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