03.26.08

Day 3 - Oceania Cruise: Seoul faces its own congestion crisis

Posted in Cross Cultural, Logistics, Oceania Cruise at 12:32 pm by Administrator

South Korea has moved into the developed country category. You can see it in Seoul not only in the impressive skyline but also in the incredible shopping districts. The stores were filled with shoppers at mid-day on a Wednesday and the young population seems confident in their own future. This is still the land of the small shopkeeper and the mega-retailers have had limited success. On the way to and from the port of Inchon to Seoul, you could see the small hardware and grocery stores that line the sides of the main highways.

Seoul is largely built out but there is incredible amount of in-fill development and renovations to structures that were built during the go-go years of the 70’s and 80’s. The heavy manufacturing locations have largely left the city but there are nevertheless quite a large number of decaying factories. It’s ironic that a country that made its debut on the world market as a low-cost labor country is losing business to countries with even lower wage costs.

One common thread of all of the East Asian countries is dealing with congestion. Seoul, with a metropolitan area population of 23 million, faces gridlock 24/7. The same challenge faces Japan, Taiwan and China. Beijing, with a rush to finish infrastructure, has traffic jams throughout the city. As with other cities around the world, you can’t seem to build enough highways or public transportation to meet the demand for additional time. The same is true on the US side - - because of the deteriorating state of the interstate routes and railroads, congestion is lengthening time to move goods from the port to the final destination.

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02.22.08

Cultural Boundaries and Successful International Business

Posted in Cross Cultural at 4:35 am by Administrator

My family and I have had the privilege of living in five countries and three continents. Being nomads of sorts, we frequently talk about our experiences. Tonight, my daughter Megan brought up the issue of differences in boundaries in personal relationships across cultures. She had been talking over the past few weeks with friends from several countries where we had lived.

In Latin America, families were all encompassing and everyone was free to involve themselves in another family member’s life. We were lucky because of our position in the embassies to get to know and be accepted by families in the area. Certainly a lot of that is due the outgoing personality of my wife Linda. Once we were accepted, we were able to be part of the families, lack of boundaries and all. Being part of the clan also brought obligations. Sometimes that put me in an uncomfortable position as an official American (visas were always a topic of discussion).

Megan noted by contrast that Germans have strong boundaries around their personal lives. One calls work colleagues as “Herr” and “Frau” I remember one time when I wanted to send an invitation to an Embassy reception to a colleague at the German Foreign Ministry. I knew him only as Herr Hoffman and so I called to ask about his first name for the invite. He had been working in the office for years and not one person knew his first name. Most Germans have only a handful of friends with whom they use the informal you “du” (In University, it is a symbol of collegiality to call many of the classmates “du” but that seems to vanish as students graduate and enter the workforce.)

This issue of formality and informality vary by culture. Americans tend to be at the informal end and Japanese at the other. Learning how to conduct business with other cultures requires an understanding of how to navigate the varying degrees of formality and boundaries.

Do you have a favorite anecdote

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12.18.07

Marketing - Are you speaking the right language?

Posted in Cross Cultural, Marketing at 10:46 pm by Administrator

One mistake that is frequently made is using the same language marketing materials for different countries. Not only are there questions of differing tastes (colors, presentation styles, etc) that differ from country to country, but there are also differences in language usage. Consider the variations in English language usage from the UK to the US to Australia to India. Some words appear comical used in different contexts– “bloody” in the US refers only to blood whereas in the UK it may be mildly impolite in some circles and in Australia a word for emphasis with no particular meaning. As an Australian diplomat remarked to me “Just because we’re both speaking English, doesn’t mean we are speaking the same language.”

The same applies in other languages. Spanish usage from Mexico to Colombia to Argentina to Spain has many colloquial differences. Words that are quite acceptable in Mexico or Spain may be swear words in Argentina. There are also differences in style. When I was in Spain, Chile and El Salvador,we would get texts of demarches (formal documents requesting support for US positions) that were translated in Washington generally by linguists from Central America. I routinely asked my locally hired staff to review the document for accuracy and we often made changes to the text to reflect local style and vocabulary.

My tip for the day: Resist the temptation to use the same marketing materials from country to country. If you are making a serious foray into the market, spend the time to have a professional from the target market look at your materials, AND listen to their suggestions.

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12.10.07

What worries US executives most about investing in Europe?

Posted in Cross Cultural, HR at 2:54 am by Administrator

At the German American Business Association of California (www.gaba-network.org) event this week (see previous post), the topic came up about what kept executives awake on the two continents. Gary Cole of Antares Partners pointed out a concern that I had heard about previously — the number one concern of US executives doing business with Europe is the relatively rigid system of laws around hiring and firing. The American executives hear horror stories about how it is impossible to reduce staff and fire underperforming employees. They hear stories about workers councils and panic that management would lost control to the workers.

My experience from working with US companies for nine years in Europe is that smart executives learn not only how to live with regulations but how to use them to their advantage. I haven’t come across one US company that ceased European operations because of the HR environment. To be sure, companies have shut down high-cost operations of which compensation was a major factor. Some of the most profitable operations in Europe are in high-regulation countries like France or Germany. A senior executive at Caterpillar (I spent a year on exchange from the State Department to Caterpillar’s finance company) remarked to me that his best overseas operation was in France. I asked him about the common perceptions of the employment laws and he replied that once you accept the framework, he found that the employees at the French subsidiary were hardworking and creative.

The takeaway from this discussion is that the key is accepting the system and finding good local employees who can carry your business forward. You have to understand the cross-cultural dimension and identify how you can motivate the employees in the other culture.

I invite you to post and tell about your experiences. 

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10.30.07

I’m asking one of my employees to translate for me for a client from Argentina. Any Tips?

Posted in Cross Cultural at 10:13 pm by Administrator

There are a lot of warning flags here!

First, is your employee up to translating? Speaking another language and being able to translate are two very different skill sets. Most translation is what is called “sequential” — that is one person says a short sentence, the translator puts it into the other language. This requires some training as well as skill. An untrained translator will tend to summarize rather than translate what is actually being said. (Hint when the translator starts off “He said that…” you’ve likely got troubles.

Secondly, is your translator knowledgeable about your field in the other language? Many people who grew up in the US speaking another language at home never were formally educated in the language. They may not have a full command of the grammar and nuances of the other language.

Third,  Is your translator aware of the nuances among the various Spanish speaking countries? Argentina and Mexico have lots of idiomatic expressions that don’t translate. (Think about British humor that goes over the head of US audiences.) More importantly, be aware of national frictions. I once worked with a consortium that was led by a great Puerto Rican sales person. His approach clashed badly with an Argentine woman who headed up our partnership with an Argentine company. I had to intervene, unsuccessfully as it turned out.

Save yourself the trouble and embarrassment - get a pro translator. It’s worth the money. (I’ll include another installment on how to evaluate the work for the professional translators.

Post of comment or send me an e-mail: info@clynchinternational.com

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10.26.07

I’ve been invited to a formal dinner on my next trip to Germany - What do I do?

Posted in Cross Cultural at 11:52 pm by Administrator

First off, some general advice - Before going to any country, consul the “Kiss, Bow or Shake Hands” series of books by Terri Morrison and Wayne Conaway (http://www.getcustoms.com/2004GTC/index.html). EVERY international business person should have a copy of this book readily available. Read it before every business trip to cover issues like meals, protocol, etc. Based on my experience living and doing business in Europe, Latin America and Asia, this book is almost always spot-on. I have minor quibbles but it’s an invaluable guide.

Now to Germany. German formal dinners are mercilessly formal. First off, you should bring  a gift. It could be something from your home area (for example wine from Californians). If you don’t have that consider flowers - always an odd number.
When you sit down, you should introduce yourself to you neighbors. (Men - be sure to help the ladies, particularly on your left, with their chairs.) You will start off with sparkling wine (Sekt as it is referred to there). The host will introduce every person at the table and make a (short but occasionally overly-long) speech why the event is taking place. The host will make a formal introduction toast. You should look into the eyes of all of the people around you and point your glass toward them (actual clinking of glasses is not that common). Only after you have looked everyone in the eye, may you take a small sip.

You will find lots of tableware and glasses. The same general rule applies as everywhere - work in from the outside. My personal advice is to watch what everyone else does and copy that. There will be multiple courses - so pace yourself. Table talk should be uncontroversial - you can talk about family, weather, etc. Stay away from politics (and sports if you are into European soccer).
If you are the guest of honor or if you are seated to the left of hostess, you should make a toast at the end of the meal. In the toast, you should profusely thank the hosts for their hospitality, compliment them on the food and make some comment on the evening (why the dinner was held). Again you raise your glass, look at  everyone in the eye and then drink.

Most of the time, after dinner drinks and coffee will be served after the table breaks up. Don’t rush out - it is rude. Most of the time, the groups break down into men and women. If you’re a woman and you don’t want to be excluded from “boys” club, just join them. But be aware that most people will start smoking afterward and the men will often break out the cigars.

Somewhere around mid-night, the dinner will break up. Remember if you have had a lot to drink (quite probable) ask your hosts to call you a taxi. German drinking-while-driving penalties are quite severe.

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