May 26

An economic and political powerhouse, the United States is unmistakably a prominent business player. A nation founded on the fundamental principle of equality, the US is a multicultural salad bowl of diverse cultures, ethnicities, religions and races. Its vast and disparate geography breeds regional subcultures and identities which mean there is no stereotypical ‘American’.

Considering the volume of exposure many of us have to certain aspects of American culture, when doing business in the United States of America it is important not to fall in the trap of feeling it is already familiar. Just like any other country, it is imperative to understand the cultural concepts behind the surface in order to harness the many benefits of doing business in the US like those highlighted below.

 

© istockphoto.com/ChrisMR

Speed and Accuracy
The well known concept ‘time is money’ is taken extremely seriously in the US. Punctuality is an essential part of American business etiquette and deadlines are strictly adhered to. North Americans emphasise getting the best results in the shortest time so when doing business in the US you can expect things to get done quickly and efficiently.

Hard Working and Dedicated Employees
An individualistic culture, the US prizes qualities such as initiative, independence, self-reliance and personal achievement. Personal competence, professionalism and accountability for individual performance are also highly valued. These qualities have stemmed from the concept of ‘The American Dream’ which is founded on the belief in the US that hard work deserves success and financial prosperity.

Equal Footing
Despite the vast array of differences present in American society, equality forms the pillar that many social relationships are based on. One’s position in US society is determined by achievement rather than ascription due to status or age. When doing business in the US, you might initially be surprised by the seemingly informal working environment where conversational tones are employed and people are addressed by their first names. This originates from a lack of formality that is often associated with authority in other countries, but does not translate to unprofessionalism or a lack of hierarchy.

Openness to New Ideas and Opportunities
In the US, open communication seems conducive to innovation and improvement. Challenging the status quo, new ideas and progress are all actively encouraged. Additionally, employee progression in the US is encouraged and tracked by systems of continual feedback, measurement and evaluation.

Clear Rules and Instructions
As a low context culture, the United States tends to utilise communication for the exchange of information, facts and opinions. The majority of information is communicated verbally and the responsibility of making sure that the meaning is understood lies firmly with the speaker. Therefore, instructions are often delivered in a very clear, unambiguous and explicit way. Equally, a lack of formal status-driven conversational structures means questions can easily be asked and conflict is dealt with openly. When doing business in the US you should feel confident that you know where you are, what you are doing and what is expected of you.

Diverse Population
In today’s globalising world, difference is strength. Nowhere can this strength be harnessed more than in the US, which is home to approximately 307 million people from different ethnic and cultural backgrounds. Immigration from virtually every corner of the world has assured the unique cultural diversity of the US, moulding the country into what it is today.

It is clear that international organisations can greatly profit from the above benefits of doing business in the US. However, doing business in the United States effectively requires efficient strategies that maximise the ethnic, religious and cultural diversity of American society. International organisations regularly doing business with the US or employing American counterparts should have a series of Intercultural Training United States of America courses to ensure they understand the subtleties of American business and social culture on all levels. Recognising differences is only the first step. Businesses will profit immensely from developing the intercultural skills of their employees through cross cultural training courses that will help to successfully harness cultural differences in the US.

© Communicaid Group Ltd. 2010

Mar 15

© istockphoto.com/Nikada

The United States of America is founded on a fundamental belief in equality and national and regional identity. Today, the US population represents a multicultural mosaic of cultural and racial heritage. With its division into 50 independent and culturally diverse states, the US combines regional differences into one strong society united by tight national bonds.

America’s influence on business culture across the globe is undeniable, but understanding the local culture and habits is just as important when doing business in the US as in any other country. American culture is unique and may be challenging for any organisation doing business in the US that is unfamiliar with its variety. The following are some of the key challenges of doing business in the US.

Multiculturalism
Every organisation planning to establish their business in the US needs to be aware of the country’s cultural diversity. Immigrants from around the world brought their own values and beliefs to the US, creating a unique American culture. Today, according to the US Census there are more than 100 million people who belong to an ethnic group creating an even stronger multicultural influence. This phenomenon may be very difficult to understand for anyone coming from a homogenous culture. Multiculturalism is also visible in the office environment where people represent different values and beliefs.

Individualism
The concept of individualism is highly significant in American culture. Individual initiative and personal achievement are emphasised and valued. This sense of independence and self-reliance also extends to the workplace where business is frequently carried out autonomously. Consequently, an individual’s position in US society is determined by their own achievements rather than status or age. This may be a challenge for organisations doing business in the US who are accustomed to more hierarchical and collectivist behaviour.

Low Context Culture
The US has a low context culture, defined by the tendency to communicate explicitly. American society is task-centred and the primary purpose of communication is to exchange information, facts and opinions. In the US, conflict is dealt with directly and openly and Americans will not hesitate to say “no” or criticise others in public. This direct style of speech may be interpreted by foreign visitors as rude and may cause embarrassment to those who are unaccustomed to such explicit communication. However, it is important to remember that this bears no relation to personal feelings in an American business context.

Egalitarianism
An important element of American culture is the concept of equality. Despite the many differences within American society, there is a collective understanding of the notion of equality. Americans believe in having equal rights, equal social obligations and equal opportunities based on the concept of individual merit. Consequently, there is a general lack of deference in the US to people of greater wealth, age, higher social status or authority. This is evident in the way in which titles are seldom used in business environments and how Americans call each other by their first names almost immediately. People coming from more hierarchical backgrounds may find it difficult to get used to this lack of formality and visible division of power in the American business environment.

Understanding American multiculturalism, independence and individualism is key to doing business in the US effectively. This can be achieved by following a cultural training program designed specifically for the USA. Attending Communicaid’s Doing Business in the US cross awareness training program will help individuals and organisations to maximise the benefits of their investments in this individualist and self-sufficient country.

© Communicaid Group Ltd. 2010

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