Sep 09

Strategically positioned at the heart of Europe and a key player in both the EU and NATO, Germany has the fifth largest economy in the world. Its strongest exporting sectors – chemicals, vehicles, machinery and household goods – set standards of quality and efficiency not just within Europe but globally, making doing business in Germany a priority for international organisations worldwide.

© istockphoto.com/ Asier Villafranca

While politically Germany is a federation of regions, each with unique traditions and customs, German business culture is characterised by a set of core drivers that affect business interactions with German nationals in a number of ways.

Task Driven and Fact Focused

German businesspeople will usually prioritise tasks over relationships so the German workforce tends to be very committed, focused and professional. This is evident in the extremely high standard of technology in German flagship companies. When doing business in Germany you and your organisation can count on dealing with highly skilled individuals who will give their best to ensure all objectives and deadlines are met. All aspects of operations undergo careful planning which greatly reduces risk and uncertainty of doing business in Germany. Furthermore, the general preference for hard facts and extremely linear and logical thought processes when making decisions and planning guarantees end products of the highest standard.

Direct Communication Style

German business culture relies on a direct style of communication. As a result, while German businesspeople can be perceived as blunt and possibly rude, when doing business in Germany you will almost always get a prompt and honest answer to your questions. What may be perceived as a direct criticism should be instead seen as a constructive and objective comment, aimed at the project in question rather than the person responsible for it. Meetings, negotiations and other business interactions with German nationals will develop in a straightforward manner. Emphasis is usually placed on reaching a common solution that is at once technically efficient, cost effective and satisfying to all parties involved.

Excellent English Skills

Whatever the position of your German counterpart within the organisation, he or she will most likely be highly proficient in English. This helps eliminate the cross cultural risks of not sharing the same language when doing business in Germany, so global organisations relying on English as an international language can profit from the excellent English skills in Germany. Although they tend to have excellent English skills, your German business counterparts will appreciate you speaking German, particularly if you are selling them your product. As the famous German Chancellor Willy Brandt once said “If I’m selling to you, I speak your language. If I’m buying, dann müssen Sie Deutsch sprechen!”

The benefits of doing business in Germany stem from its strong economy and business sectors, the high level of skills of Germany’s workforce, as well as from the core values of German business culture. If your organisation is doing business in Germany, its success will depend on a sound understanding of these values and on the ability to decipher their influence on business interactions which you can gain through cross cultural awareness training courses and initiatives.

© Communicaid Group Ltd. 2010

Sep 08

International organisations recognise the benefits of sending skilled employees overseas to open new offices, win new business, manage local teams, etc. Assuming that employees selected for an expatriation have the skills they need to be efficient in that role can be dangerous. Every culture has a unique set of values and working practices that can be difficult to understand, adapt to and manage if the expatriate does not have the appropriate level of intercultural preparation.

© istockphoto.com/ Neustockimages

Culture shock is probably the first and most important challenge expatriates will encounter when relocating abroad. The different lifestyle, food, language and environment among other things can result in a feeling of culture shock that needs to be considered by both the expatriates and the organisation in order to prevent serious performance issues. The inability to cope with culture shock can result in a failed expatriation which can represent a huge financial loss for any organisation.

Culture also widely influences working practices. Attitudes to time for instance can vary dramatically from one culture to another. Germans tend to consider time as linear and will schedule projects carefully and do their best to follow the project plan or agenda. Indians on the other hand, tend to consider time as circular, meaning they usually don’t plan their actions throughout the day and are likely to do several tasks at a time. Bringing the two cultures together without an expatriate intercultural program before their collaboration can result in frustration and misunderstandings about when things should be completed. Attitudes towards authority, decision making or reward systems are other examples of where working practices can also vary significantly across cultures.

Communication styles are another factor of international working that can greatly differ from one country to another making it difficult at times to decipher your foreign counterpart’s message. Non-verbal communication such as eye contact, touching, smiling or even the distance between people can have totally different meanings depending on your culture. Other elements of communication such as context, accents, acronyms or specific vocabulary (e.g. American vs. British English) can also be obstacles for expatriates communicating across cultures.

Expatriate intercultural programs like Living and Working in Germany can ensure that expatriates have the right knowledge of cultural attitudes and how they impact business practices in other cultures. The importance of expatriate intercultural programs should not be underestimated as with the right level of intercultural preparation expatriates can avoid cultural conflict, loss of time and failed assignments.

© Communicaid Group Ltd. 2010

Sep 02

Organisations increasingly send employees abroad on international assignments all over the world. While this has several advantages such as an increased global reach for the organisation and access to a broader talent pool, it also creates a large array of new challenges for international assignees who have to adapt to new working practices and communication styles. Helping international assignees to develop their intercultural skills through cross cultural training is crucial for global organisations that require successful communication and collaboration across cultures.

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Understanding the impact of culture on business and working practices is vital. Our behaviours and values are widely influenced by our cultural background but this can sometimes be difficult for foreigners to decipher without the right cultural tools and understanding. A comprehensive analysis of cultural values in specific countries can significantly help employees to decipher key cross cultural attitudes towards aspects such as time, hierarchy or risk. Culture also influences how we communicate verbally, non-verbally and virtually. All these cultural elements can hinder effective communication within international teams and cause cross cultural misunderstandings and frustrations if not understood or managed.

Being aware of cross cultural business practices is sometimes not enough. When organisations decide to send employees to work on short or long international assignments, it’s important that they consider the support options to ensure that expatriates understand the impact of culture on their daily life. How to socialise, hints of the country’s environment and useful information for the other members of the family are just a few examples of what a cross cultural training course can provide international assignees. These elements must be taken into consideration as they can greatly reduce the culture shock upon arrival.

A lack of cultural awareness can harm business opportunities and cause organisations to lose large amounts of money and time spent on human resources. Communicaid’s cross cultural training courses are specifically designed to provide key information and insight needed by the international assignees and their family, enabling an easier adaptation process which is essential for a successful personal and professional experience on the global market.

© Communicaid Group Ltd. 2010

Aug 31

Most people associate German business culture with efficiency, quality and high technical standards. With the fifth largest economy in the world and a great degree of openness to international trade and business, Germany has established itself as a key economic power on the global stage making doing business in Germany more attractive than ever.

© istockphoto.com/ Wrangel

Doing Business in Germany without adequate cross cultural awareness, however, is a risky proposition. The cultural values of German business culture at the root of the country’s economic success can also prove a source of cross cultural misunderstanding for global companies doing business in Germany. Cross cultural awareness training courses highlight the cultural risks your organisation is likely to encounter when doing business in Germany.

These stem from a number of factors, some of which are described in more detail below.

Hierarchical Company Structures

German business culture places a great value on hierarchy. German businesses therefore follow a strict hierarchical structure, where decisions tend to be made at the top and communication is usually vertical. Status is acquired and assigned on the basis of merit, and the highest positions in a German company will be held by the most technically qualified and experienced employees. For international organisations doing business in Germany this hierarchical structure can affect negotiations and meetings which may seem to take longer than expected. You may perceive the plethora of procedures and policies as excessively slowing things down and creating mistrust. In truth, your German counterparts are most likely looking closely at all details and waiting for decisions to be made at the appropriate level. While decision making processes may be slow, the final result will be of the highest quality, as German products are renowned to be.

Strong Departmental Rivalry

When doing business with German companies, you should be aware that you may come across strong departmental rivalry. This may be actively encouraged by German managers in order to get the best out of their employees and staff. While it arguably contributes to a competitive product and high levels of efficiency, it means that you should be sure of communicating and sharing information with exactly the right parties and people within the German company with which you are doing business. Make communication channels clear from the start and ensure you are aware of who the key decision makers are on the German side.

Direct Communication Style

German businesspeople tend to communicate in a very direct manner. They will give you their opinion openly and straightforwardly and they will expect the same from you and your colleagues. Humour does not tend to be valued or used in business, so be aware that using humour can be inappropriate and unprofessional. You and your organisation need to be aware of this cross cultural difference as your German counterparts can otherwise be seen as blunt and undiplomatic. In negotiations, you should read any criticism as a constructive contribution to improve the outcome, rather that an attack of the person in charge. If you are working under a German manager, don’t expect praise, as a good job done is the minimum you will be required to do.

Understanding German business culture and developing the cross cultural skills to decipher its influence on business relationships with your German counterparts makes the difference between a profitable venture and a failed one when doing business in Germany. Cross cultural awareness can help you tip the balance of negotiations with German businesses in your company’s favour, greatly contributing to your company’s global success. Cross cultural awareness should form part of the know-how of all internationally focused organisations and can be developed and harnessed through Communicaid’s bespoke cross cultural training solutions.

© Communicaid Group Ltd. 2010

Aug 24

Have you ever thought of multicultural teams as a distraction? Do differences in approaches and opinions always get in the way of the decision making process? Some people think that cultural difference is something that must be enjoyed but should not get in the way of achieving goals. How could that be an effective perspective at work?

© istockphoto.com/ Sean Locke

Prioritising goals over relations can be considered a culturally specific trait. Team members may, depending on their cultural background, place more importance on completing tasks over relationship building. People who place tasks before relationships may also value assertiveness and antagonism as opposed to compromise and cooperative achievement. But how could it be possible to enjoy an international environment and the differences that exist if you think that culture is an obstacle to achieving targets?

You can’t fully enjoy and appreciate something that you do not know very well, and the same applies for cultural differences. Either through extensive international experience or by attending a cross cultural awareness training course such as Managing International Teams or Working Effectively across Cultures, you will be able to understand how culture influences the way people communicate and, in particular, how they approach business relations.

The way people talk to each other, their working standards and the ability to adapt constitutes challenges in an international environment. Hence, it is crucial to acquire the right skills to acknowledge with an open mind the cultural gaps in order to pursue effectively your team’s goals without letting them be in the way of your operations.

Managers should make sure that members of international teams have appropriate cross cultural training to make them aware of the different styles of communication and approaches that their international colleagues or customers might display. Harnessing the many cultural perspectives and opportunities of cross-cultural teams requires the ability to motivate each team member no matter their culture by creating a sense of trust between employees.

Through an understanding of culture and its impact on business and cross cultural teams, intercultural training helps global organisations remove any potential of conflict and risk and gives them the knowledge they need to reap the benefits of a culturally diverse team without taking the focus off the targets.

© Communicaid Group Ltd. 2010

Aug 20

According to the 2010 Hydrogen Global Professionals on the Move Report, top executives and managers are increasingly willing to go on international assignments in foreign countries. Why are these highly qualified workers so eager to work in a different country? The report shows that they are not fleeing the economic crisis but they are in fact, trying to advance their career and stand out in this competitive global market.

It is true that being an expatriate has many advantages. From a career perspective, working abroad has always been a valued experience and enhances any CV. The experience international assignees gain in key positions in subsidiary companies or divisions abroad can significantly help to boost career opportunities later in their life.

© istockphoto.com/ Mike Bentley

In addition to improved career opportunities, expatriates also traditionally have higher wages and an improved status in their company. Although increased wages and status are attractive, the report indicates that these two aspects are not the main factors motivating employees to go on an international assignment. Instead, the report suggests their interest is increasingly around the challenging aspect of expatriation and the opportunities they would have to develop their skills in an international context.

One of the best examples of this is the quick rise of Philip Clarke through the Tesco Group. Clarke held several posts abroad, particularly in Asia where he was impressively successful, before being chosen as the next CEO of Tesco by Sir Terry Leahy. There are no doubts that he was chosen because of the skills he developed abroad and in his many roles at Tesco where he showed a great capacity to adapt to each new environment and choose the best suited option to ensure the success of the stores under his supervision.

Top executives, managers and team members who recognise the opportunities an international assignment can bring, like Philip Clarke did, should be aware that it takes more than being good at their job. Future expatriates need the expertise and social skills necessary to accomplish their business objectives and responsibilities but this along is not enough.

International assignees have to possess a global mindset which allows them to lead and manage their foreign counterparts effectively. Flexibility, adaptability and cultural awareness are also important skills to have. While these skills can be developed slowly through experience, going through a tailored intercultural training programme will ensure they avoid any cultural faux-pas and help them to reach their full potential in their new cultural environment. Intercultural training is key to helping them overcome the many different cultural challenges awaiting them in the target culture which can hinder their progress and performance.

Working effectively in a new country takes time and requires cultural knowledge and insight which can only be gained through a combination of experience and intercultural training delivered by qualified trainers with ‘dirt under their nails’. Intercultural training courses like Communicaid’s Living and Working in Brazil or Living and Working in India are designed to help top executives, managers and team members settle and adapt to the new work and social environment of their expatriation through intercultural knowledge, tools and strategies.

© Communicaid Group Ltd. 2010

Aug 17

It’s the Maghrib hour, just after sunset, and you are sitting on a carpet in a big tent being served juices and mint tea, snacking on dates. There are lots of people around you and the atmosphere is one of fellowship and joy. Any ideas where you might be? You have been invited to an Iftar, a breaking of fast ceremony which you may be lucky to experience in the next month if you are planning a business trip to a Muslim country.

© istockphoto.com/ Clu

Ramadan started on Wednesday 11 August this year and lasts for one month. If you are doing business in countries that observe Ramadan, such as Saudi Arabia, then you may find things a bit different than the rest of the year. You may find it difficult to arrange business lunches, your Muslim counterparts might be feeling tired or irritable during meetings and shops and restaurants will usually be open only during restricted times. Bank and other services may also be interrupted regularly for prayer times during the day. Being aware of how Ramadan impacts both social life and business will help you avoid any loss of time while you are there.

People doing business in Muslim countries during Ramadan often find a lower level of productivity, increased difficulty in meeting deadlines and challenges scheduling meetings. If you are travelling to a country which observes Ramadan, you may have the honour of receiving an invitation to attend the ceremonies that take place after the fasting hours. Iftar in particular substitutes normal business lunches and being invited is a sign of trust and friendship so you should accept. People with good interpersonal skills, cultural awareness and an understanding of the social etiquette during Ramadan will be more likely to have the opportunity to be involved which can help the relationship-building process.

Doing business in Saudi Arabia or any other country which observes Ramadan requires an ability to identify and understand the expected behaviours and the appropriate topics of conversations that would engage your Muslim counterparts. Communicaid’s Cultural Awareness Training Middle East courses such as Doing Business in the Middle East provide you with the necessary knowledge and understanding to overcome any cultural barriers. Cross cultural training also helps you to develop the skills to be able to learn and recognise crucial factors such as respecting face and status when trying to create new business relationships with counterparts in other cultures.

Although a lot of things may appear closed during this period, not everything is dormant during Ramadan. For example, the Holy Month is a peak season for sweet shops, with sales increasing up to 30%. Some telecommunication companies have also adapted their products for the Muslim market by adding special features such as Islamic chants, videos and ring tones relating to Ramadan.

Another successful initiative was started by Samsung who has agreed to give part of its profits to a humanitarian organisation every time certain products are purchased during Ramadan. “The Holy Month is the perfect opportunity to demonstrate the company’s commitment to corporate social responsibility and ongoing dedication to helping those in need”, said the head of Corporate Marketing at Samsung.

Being able to relate to the cultural values of a specific market and showing respect towards them will open many oportunities for your business. Building effective business relationships is one of the pillars for doing business in the Middle East successfully, so Ramadan could be the perfect time to approach new ventures. Provided that your cultural understanding is strong, you will find plenty of opportunities to build relationships with your Muslim counterparts during Ramadan.

© Communicaid Group Ltd. 2010

Aug 12

In the current worldwide economic situation, being culturally aware and interculturally competent is a must for success in this highly competitive international market. Successful business people from all over the world are competing for top positions in international organisations. Being business savvy and having a good track record at home is no longer enough to secure the best roles in the global arena.

© istockphoto.com/ Kasia

According to new research published by the Harvard Business Review, a ‘global mindset’ is what candidates need to be successful in a global role in which they will need to be capable of adjusting to different environments and have the ability to work effectively with international colleagues. This ‘global mindset’ is defined as having three key elements: intellectual, psychological, and social capital.

Looking at how two people, one with and one without a global mindset, deal with cultural difference and international situations can give us a very good idea of how important having a global mindset is for anyone in a global role.

Alan, a promising employee at a US-based manufacturer was sent to Beijing as general manager for consumer products. He was excited by the challenge and looked forward to helping his company through a difficult period which was due to internal tensions that were interfering with the growth of the company. Before he started his new role he researched Chinese culture and read that the Chinese tend to think collectively and prioritise the interests of the group. As he started his work in China he emphasised the need for cooperation and teamwork amongst his employees in order to improve the situation and achieve the desired results.

After 60 days however there were no visible improvements and Alan found that although his employees had agreed to all of his suggestions, they had not committed to any specific action and were also not holding anyone accountable for the lack of improvements. Alan soon started to lose confidence in his abilities, took a dislike to Chinese food and Chinese culture and ended up returning to the US before the end of his international assignment in China costing the company wasted time and money.

Debra, Alan’s colleague, had a completely different experience when she was sent to Sao Paulo under similar circumstances. She was expected to turn around operations affected by low productivity and poor staff morale in a short timeframe. Unlike Alan, Debra was born in Venezuela to US military parents, had travelled extensively throughout her life and was fluent in several languages. Debra quickly embraced her new position and sought input from the local staff about what needed to be done to improve productivity. She did her research and took every opportunity she could to reach out to her staff. Within months, her project was back on the right track.

So although Debra’s background was more international than Alan’s, why were their experiences so different?

According to experts, the intellectual, psychological and social capitals that make up a ‘global mindset’ are each comprised of three key attributes that can guarantee organisations that their assignees are ready and likely to succeed in an international assignment. These attributes are:

Intellectual Capital: Global business savvy, cognitive complexity and a cosmopolitan outlook.

Psychological Capital: Passion for diversity, thirst for adventure and self-assurance.

Social Capital: Intercultural empathy, interpersonal impact and diplomacy.

Debra’s previous experiences abroad and her knowledge of other languages and cultures helped her to better understand her new employees and how she needed to deal with them in order to increase staff morale, confidence and productivity. She possessed, apart from talent, the ‘global mindset’ required for the international assignment set by her company. While Alan was talented as well, his skills weren’t as transferable to another culture given his lack of previous exposure to an international environment.

Debra was born into a different culture and had international experiences from an earlier age than Alan. However, the skills necessary for success in international assignments are not necessarily skills you are born with but can be acquired through cross cultural awareness training and international exposure.

Cultural awareness training programmes can equip you with the relevant tools and strategies to communicate efficiently with foreign counterparts and reduce the stress coming from a new and international context. They can also help you to adapt your management styles and understand the motivation factors and expectations of your new counterparts, ensuring a good working atmosphere. Getting familiar with their cultural values will also help you to decipher their behaviours and thus avoid critical incidents which can jeopardise a project or a profitable business opportunity.

Communicaid’s specialist courses such as cultural training for Relocation, Managing International Teams or Effective Global Leadership can provide you and your company the necessary knowledge and skills required to thrive in the international arena. By being culturally aware and prepared to work across different cultures, employees of international organisations who posses this ‘global mindset’ are invaluable assets to their company, capable of increasing their chances of success and of profitable international assignments.

© Communicaid Group Ltd. 2010

Aug 03

An international team of French and American researchers recently conducted experiments on the effect of anger during international negotiations. The experiments involved 130 Americans, 63 of whom had a European background while 67 had an Asian background. The aim of this study was to establish whether or not anger could be used as a tool to influence a foreign counterpart, regardless of his/her cultural core values.

© istockphoto.com/ Nyul

The results are clear: Americans with a European background are more likely to accept demands coming from a counterpart who openly shows their frustration or anger. However, using this particular strategy will be ineffective with Asian interlocutors. But how can we explain these differences?

In Europe, negotiations are usually seen as a test where both parties confront their strengths: the strongest wins while the weakest inevitably loses and is the one who makes compromises. In this context, showing anger or a strong display of emotion can be a way to influence the outcome of the negotiations as well as a way to express your will and eagerness to succeed.

This strategy may not be effective everywhere in Europe however. For example, showing emotions tends to be negatively perceived in countries with a neutral communication style such as Norway or Germany. On the other hand, countries with an affective communication style like Spain or Italy tend to accept displays of anger or strong feelings.

Meanwhile in Asia, the importance of harmony is paramount and is present even during business negotiations. Building this harmony takes time but it can result in consensus and a win-win situation. Asians also tend to be obsessed with the concept of ‘face’ and will do everything they can to keep face during a negotiation. A loss of face in most Asian countries includes any sign of violent emotion such as anger or exaggerated eagerness. Shattering harmony is also considered inappropriate and can harm your reputation and jeopardise the whole negotiation process along with future business opportunities.

If we consider these huge differences in negotiation styles and expectations, it’s not difficult to foresee potential problems and risks that European and Asian negotiators may encounter during international meetings.

Providing employees the tools they need to understand their international counterparts and work effectively in a global context is key to success. Cross cultural awareness training courses such as Negotiating across Cultures or Doing Business in Japan can help you and your organisation to truly understand the complexities of cross-cultural negotiation styles and expectations and give you strategies to manage them effectively.

© Communicaid Group Ltd. 2010

Jul 30

BP recently announced the appointment of a new CEO: Robert Dudley, an American citizen who will take the helm of the oil company. Dudley will replace British national Tony Hayward who had been in charge of one of the world’s largest organisations for the last three years.

This decision did not come as a big surprise. Hayward is paying for the Mexican Gulf disaster which is considered one of the worst ecological disasters ever seen. Hayward’s very public role as CEO combined with several PR gaffes in the days that followed the platform incident have all played a role in him being replaced.

Most US journalists and communication specialists have pointed out a lack of commitment, concern and apologies from BP’s CEO during the oil spill. Hayward was also described as distant and not really interested in the events occurring in the Mexican Gulf.

© istockphoto.com/ Nick Cook

These accusations seem somewhat strange, however, if we look at the bigger picture. How could a CEO remain unconcerned when his company is responsible for a massive oil spill that will harm the brand’s image and potentially market value for decades? As emotions run high in the US and particularly in the Gulf of Mexico States it is easy for Americans to accuse the besieged BP Chief of being a callous polluter.

One of the key elements of this case is the nationality and culture of Hayward. As a British national, his communication style and core cultural values are different from those which you typically find in Americans. More precisely, Hayward is less likely to show his emotions openly. Brits are renowned for their reserve, straight face and lack of emotional display, even in tense and dire situations. Foreigners often perceive this to be quite cold and a sign of disinterest – hence the reaction from the American public.

Although much of Hayward’s communication style could be influenced by his national culture and values, much of his communication strategy was poor and things he said were inappropriate. This is where cultural awareness training can be really helpful. If he had known what kind of audience he was communicating to, what expectations they had of him and the style of communication they preferred, he could have adapted his approach to be more positively received.

A better understanding and awareness of US culture and communication styles could have helped Hayward to adapt and choose a better strategy to deal with this crisis. Americans are known to be more open and direct and tend to expect their leaders, businesspeople and celebrities to openly apologise in public when they have done wrong. Recent American history is full of incidents where famous “wrongdoers” have publicly apologised and been “rehabilitated” by the American public. After all, “To Err Is Human, to Forgive Divine” (Alexander Pope).

BP will have a new CEO in October. His primary objective will be to mend the image of the company around the world but particularly in the US. The fact that he his American will probably help him to find the right tone and style to accomplish this difficult task. Hopefully, his previous experience in other countries will also help him to adapt to other cultures as BP continues to work and expand in other international markets over the next few years.

Cross cultural awareness training programmes such as Communicaid’s Doing Business in the US or Managing International Mergers and Acquisitions can help organisations to deal with such cultural differences and react more effectively to crisis such as this one. Understanding the key differences in communication styles as well as cross cultural perceptions and business practices is essential for any organisation working in the international arena.

© Communicaid Group Ltd. 2010

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