4/28/13

Auckland businesses get tips in China cross-cultural skills | Asia New Zealand Foundation

Auckland businesses get tips in China cross-cultural skills

Occam training programme director Amy Adams recently ran a seminar for the New Zealand China Trade Association (NZCTA) on how to build successful business relationships in China.
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Occam, a cross-cultural competency consultancy, was recently awarded a contract by New Zealand Trade & Entreprise to deliver cross-cultural training to New Zealand companies wanting to enhance their capacity to manage their business relationships with Chinese companies. At the start of the workshop, Adams warned that some of her comments may strike some participants as politically incorrect. She advised participants to remember that behaviour is neutral and that different people will interpret and then judge the same behaviour in different ways. Multicultural management rests on an awareness of others, she said. It is also based on the fact that people from other cultures have the same human needs but have Cross-cultural trainer Amy Adams different experiences. These influence their perceptions and values, and therefore their communication and business styles. In the case of China, she said, multicultural management also hinges on an understanding that concepts such as guanxi, face and hierarchy influence every situation, including business. Respect means that you make a significant effort to understand the other person/culture and adapt your behaviour, while not abandoning your personal compass. Adams cautioned attendees to bear in mind that just like other countries, China is made up of people from many different backgrounds. When building relationships in China, Western business people must take into account each persons age, work experience, wealth and location, as these factors all influence each individuals characteristics and may indicate how best to work with them. Adams used eight cultural dimensions to frame her practical tips on how Western business people can better understand and work with Chinese people. She also used a series of practical scenarios drawn from real-life situations to illustrate her points. In one scenario, which raised the issue of corruption, she commented that what we [in the West] call corruption is happening less often than before in China, but it does still happen. Adams suggested four steps to deal with corruption:
1. Quote popular political slogans. For example, reference social harmony, talk about socialism with Chinese characteristics or mention how great China is. 2. Tell the individual concerned that you know they are not suggesting any corrupt practice as you realise they would not consider behaving in such a way. 3. Flatter the person: Use great compliments. 4. Offer something else that is likely to be acceptable to both parties. Lets talk about it tonight over dinner; you pick the restaurant. Or, Why dont you come visit our factory in New Zealand [as my guest] and youll see how we do things there?

If these steps dont work, said Adams, Get a Chinese person to handle the situation for you when you are not around. She described the concept of face as serious, unconscious and present in every situation in China. It is worth lying for. It is worth spending money on. And it influences decisions. Face can be lost through insult, blunt refusal, a declined invitation, direct confrontation or contradiction, she said, It can also stem from blame, perceived ignorance or loss of temper. The Chinese have two kinds of anger. Theres, Im really angry and theres, Im showing anger in order to get something. Adams advised Westerners to only show anger in business situations in China if they could control and use it for a specific purpose. If you make someone lose face you will get the feeling that they are being difficult. Give face by being respectful, patient, positive and reserved. Compliment the group and their hospitality. Give gifts and concessions, and favours to [other peoples] connections. When checking whether or not a Chinese counterpart has understood what you have said, Adams warned to be careful of nodding heads: it may not necessarily mean people understand. Speaking after the seminar, Ernst & Young partner Joanna Doolan saw Adams insights as a very timely reminder that "the little things matter" in business.

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4/28/13

Auckland businesses get tips in China cross-cultural skills | Asia New Zealand Foundation
This type of improved understanding is critical if we are to make real progress in maximising the benefits from the strong relationship between China and New Zealand, and the growth path that China is on. [In China] its important to spend time getting to know each other before getting down to the business agenda. She also highlighted Adams advice to ensure the highest ranking person at a meeting is given the seat of honour facing the door. And she noted the importance of Western business people being able to decipher real but unspoken messages. If, for example, a Chinese host does not escort visitors from a building after a meeting, it may signal that all is not well. An understanding of such unspoken messages is vital in learning how we are best to invest time or when we need to move on. Asia New Zealand Foundation young leader Simon Verbiest said that, among other insights, he gained an understanding that Chinese people place a big emphasis on win-win-win decisions as opposed to the Western style win-win. This means not just I win/you win but also that China wins. Verbiest also picked up on Adams advice for Western managers in China to use milestones to ensure work is being done. He says he also learned that, for managers giving instructions to Chinese staff, the query Would you like me to clarify? is more effective than Do you have any questions? This is partly because the word question in Chinese is the same as the word problem. Few people will say yes if you ask them, Do you have a problem? Fellow young leader and Beca power systems engineer Shreejan Pandey said he had learnt some useful table manners, hints on guanxi and appropriate ways to play the negotiation game. Hed also learnt of "the need to ensure my glass is held lower than my hosts glass during toasts!" David Flett, investment champion from Auckland Tourism, Events and Economic Development (ATEED), said he appreciated Adams insights on guanxi and its implications, the notion of face, and Chinese work culture and ethics. During a recent visit to New Zealand, Asialink CEO Jenny McGregor says there has been a big increase in demand from corporations for cross-cultural training over the last year. Asialink is Australias largest non-government centre for the promotion of Australia-Asia relations. Adams says Occam has also witnessed an increase in demand in the past 18 months, particularly from corporations in Europe and the USA. The increase is being driven by a realisation and acceptance that China is going to be a key factor in future success, she said. And while most countries are becoming more active in this respect, New Zealand has a competitive advantage as it can move faster.
By Ruth Le Pla

Last updated: 14 February 2013

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