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Mar 30

Top Tips for Doing Business in the USA

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources No Comments »

It has been said that Britain and the USA are two countries separated by the same language. Many assume that Brits and Americans are similar due to their colonial ties and special relationship but actually they are often more than just an ocean apart. Since independence in 1776, the United States has developed its own identity and ways of doing things. Compared to the Brits, Americans’ communication style and attitudes are more direct and open and this affects doing business in the USA.

Statue of Liberty 3 Nikada i Top Tips for Doing Business in the USA

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Americans tend to be very easy to deal with due to their open nature. They have a very strong work ethic and are not afraid of taking risks to succeed. Success is often measured in terms of profit, so when conducting business, they will tend to prioritise tasks over relationships. Just as former US President Calvin Coolidge once stated, “The business of America is business.”

As the world’s largest economy, America’s influence on business culture around the world is unmistakable. There are boundless opportunities for others to achieve their very own ‘American dream’. An understanding of this young diverse culture as well as knowledge of American business etiquette is essential for anyone doing business in the United States.

The following tips will help you to maximise any opportunities of doing business in the United States.

  • Be punctual. Arriving late to appointments can be considered disrespectful.
  • Meet deadlines. In the United States ‘time is money’ and Americans place great emphasis on getting the best results in the shortest period of time possible.
  • Be polite. Politeness is highly valued in the United States and Americans will expect you to match their level of politeness.
  • Participate in small talk. Americans like to create a comfortable environment before doing business by chatting for a couple of minutes.
  • Always remember to shake hands when greeting American counterparts. It is customary to begin and end business meetings or negotiations with a brief but firm handshake.
  • Americans are known for their openness and are often not afraid to share details of their personal life with you. Following up about an event they went to or a family member they told you about is appreciated and will help you build a stronger relationship with them.
  • Remember to minimise physical contact. Americans respect other people’s space and privacy and are very protective of their own ‘personal bubble’.
  • If you are working on a long-term project in the US, don’t be surprised if a colleague or counterpart invites you to their home for a meal or BBQ.
  • Address colleagues with their appropriate title at first, but don’t be surprised if you are invited to call someone by their first name soon after meeting. Colleagues will almost always refer to each other by their first name.
  • Don’t be offended if your American colleague seems frank. Americans like to get down to business and don’t like to ‘beat around the bush’ when it comes to negotiating. They are often blunt which can be perceived as rudeness by certain cultures.

Considering and respecting the top tips for doing business in the US above is the first step towards building effective relationships with your American counterparts. Participating in a cross cultural awareness training course such as Doing Business in the United States will give you a deeper insight into the cultural differences you may find in the US and it will improve your ability to anticipate and manage them effectively.

© Communicaid Group Ltd. 2011

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Jul 30

BP has a New CEO: Did Culture Play a Role?

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector 1 Comment »

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.

Oil Platform Nick Cook i1 BP has a New CEO: Did Culture Play a Role?

© 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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Mar 15

Challenges of Doing Business in the US

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector 1 Comment »
Statue of Liberty 3 Nikada i Challenges of Doing Business in the US

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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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