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The Forgotten Factor:
Effective Communications for the
Global Executive

Carol Webster
Owner, Cassel International




                                   1
Globalization Defined


                   • Tying it All Together
                        –   Iraq
                        –   Kuwait
                        –   England
                        –   Japan
                        –   Spain
                        –   Germany
                        –   U.S.
                   • Brand It Like Beckham!


                                              -2-
Why Do Business Overseas?
   If you want to succeed you should strike out on
   new paths rather than travel the worn paths of
   accepted success.
   John D. Rockefeller, Jr.
                                               14000
• Global economy
                                               12000
• Expand customer base
                                               10000                                       Canada
• Lessen impact of domestic
                                                                                           Mexico
  downturn                                      8000
                                                                                           UK
• Tennessee ranks 17th in                       6000                                       China
  exports among U.S. states                                                                Japan
                                                4000
• TN exports – transportation                                                              TOTAL
                                                2000
  equipment,
  computers/electronic products,                       0
                                                           2000 2001 2002 2003
  chemicals, machinery
                                                     Source: OTEA, ITA, U.S. Dept. of Commerce

                                                                                                 -3-
Checklist for Doing Business
Overseas
A journey of a thousand miles must
begin with a single step. - Lao Tzu   • Identifying Specific
                                        Potential Markets
                                      • Assessing Your
                                        Company’s Potential
                                      • Selecting the Right
                                        Distribution Channels
                                      • Promoting Your Product
                                      • Overseas Transportation
                                      • Foreign Credit &
                                        Collections
                                      • The Forgotten Factor??
                                                                  -4-
The Forgotten Factor?
The Gentle Reader will never, never know what a
consummate ass he can become, until he goes
abroad.
--Mark Twain, part of travelog from his trip to Egypt
  Mark




   • Cross-Cultural
     Awareness
   • Difference between success or
     failure
        – Business environment
        – Personal/social environment
   • MUST be on the checklist




                                                        -5-
Never Underestimate




                      -6-
Why Cross-Cultural
Communications?

                                    • Offer riches of cultural
                                      diversity
                                         – Come from around the
                                           world
                                         – Speak more than 380
• Over 11 % of the U.S.                    different languages
  population is foreign-born
• (1) child in (5) is an
  immigrant or an
  immigrant's child

                  Source: www.learnaboutcultures.com
                                                                  -7-
Communications Defined
In travelling; a man must carry knowledge with him, if he
would bring home knowledge.
Samuel Johnson from Boswell, Life of Johnson, 1791


 • From the Latin root
   “Communis”
      – Having something in
        common
      – Sharing
 • Not the act of sending a
   message, but the
   achievement of
   understanding
      Source: Donald K. Smith, Make Haste Slowly “Developing
                                           Slowly,
      Effective Cross-Cultural Communications”

                                                               -8-
Test Your “IQ”
(International Quotient)

            • What a
              beautiful
              vase!
         •I’m looking forward to
          I’m
         working with my English
         colleagues.

                     Oh, I couldn’t possibly drink
                     that now….
               Source: www.learnaboutcultures.com    -9-
Test Your “IQ”
(International Quotient)


              • Why won’t they call me back?


    Would you care for a sweet?


                 Es ist mir eine Freude, Herr
                 Schmidt, Sie kennen zu lernen.

                 Source: www.learnaboutcultures.com   -10-
Where do Communications
Problems Arise?
You gotta know the territory! --The Music Man
                                The


                                                •   Names
                                                •   Words
                                                •   Touch
                                                •   Dress
                                                •   Body Language
                                                •   Negotiating Styles
                                                •   Humor
                                                •   Gift-Giving
                                                •   Dining

                                                                         -11-
What’s In a Name?
Coca-Cola - Bite the Wax Tadpole
Chevy Nova



  • First names are last names (or not?)
       – China, Latin America
  • Hey Joe!
  • Business Card Etiquette
       – What to include
       – Have them translated!
       – Presentation


                                           -12-
“Words” to the Wise
“Nothing sucks like an Electrolux.”


• Why Don’t They Speak English!!!
     –   The soldier decided to desert his dessert in the desert.
     –   After a number of injections my jaw got number.
     –   The bandage was wound around the wound.
     –   The farm was used to produce produce.
• Learning a Different Language
     – 10 phrases you should know
     – Beware pronunciation and emphasis!!!
     – Effort is rewarded
• Working with a Interpreter

                                                                    -13-
Globalization through the Internet
 Fly Naked! - Braniff


• 60% of all internet users reside outside U.S.
• Non-U.S. portion of e-commerce almost doubled
                         commerce
  from 1998 – 2003 – 26%        46%
• Translation vs. “Localization”
   –   Sign, symbol, color, image and date conventions
   –   Currency issues
   –   U.S. lags behind
   –   Translation must be accurate
   –   “Many Markets, One Message
                             Message™”

                        Source: International Data Corp.   -14-
A “Touchy” Business
Seen in a hotel elevator in Paris:
Please leave your values at the front desk.



• How Cultures Differ
    – Some cultures don’t like casual body contact
    – Some cultures touch a LOT!
• Man-to-man or woman-to
                      to-woman
• Bow How
• You’re in my space!



                                                     -15-
Dress for Success
•Drop your trousers here for best results. (Seen at a Taiwanese laundry)
 Drop



  • When in Rome
       – Try not to stand out
       – Don’t try to pull off local dress/costume
  • General rule is Conservative!
       – Traditional dark suit w/ white shirt for men
       – Dress or skirt-suit for women
                        suit
  • Informal dress acceptable sometimes
       – Warm cultures
  • Shoes on or off?
  • How to identify an American overseas

                                                                           -16-
Actions Speak Louder than Words
 •Stop -- Drive sideways. (Detour sign in Kyushi, Japan)


Eye Contact – Look me in the eye .or not
                                                                 Nod Yes for No


                                     Facial Expressions
                                         Put on a happy face!
                                         Poker Face



        Wave Bye-Bye!

                                                 Gestures
                                                     Thumbs up or
                                                     down
                                                     Everything is
                                                     A-OK
                                                     V for Victory
                                                     Hook ‘em
                                                     Horns!                       -17-
Negotiating Styles
“ . . . .Voyaging through strange seas of thought, alone.”
--WILLIAM WORDSWORTH


• Cultural Context
    – High context vs. Low context (Subtlety vs. Lay It On the Line)
    – Collectivism vs. Individualism
• What is a contract?
    – Starting or ending point
•   When Yes Means No and Vice Versa
•   Friendship first, then business
•   Adversarial relationship or not
•   Time concepts

                                                                       -18-
Funny You Should Ask ..
Advertisement for donkey rides, Thailand:
Would you like to ride on your own ass?




• Humor, Religion, Politics and Sex
    – Not forbidden, but tread lightly!
• Understanding Smiles & Laughter
    – Happiness?
    – Embarassment?
    – Hide True Emotions?



                                            -19-
Beware of Colleagues Bearing Gifts
 In a Budapest zoo: Please do not feed the animals. If you
 have any suitable food, give it to the guard on duty.

• When It’s Important
                                         • Potential gift
                                                     gift-giving gaffes
   – Japan
                                              –   Dozen red roses
   – Middle East, Latin
     America, Pacific Rim                     –   Knife
   – Elsewhere                                –   Bottle of alcohol
                                              –   Leather items

                             • What to Give
                                  – Unique products from
                                    your state or region
                                  – Something to represent
                                    your city or state
                                  – Music
                                  – Parker Pens                           -20-
Eat, Drink and Be Wary
“I’ll have the chicken with estrogen sauce”   ..Heard in a
Prague restaurant


• Don’t ask “What’s for dinner”
   – Not knowing is sometimes better
• Pass the sheep’s eye please                           .
   – Offerings likely to be host country’s “specialty”
   – Unfamiliarity doesn’t mean bad
• Eat what’s offered
        • At LEAST a few bites
        • Slice it thin
        • Tastes like chicken!
• Be prepared for time differences
• Alcohol Awareness

                                                             -21-
Achieving Cultural Competency
The most important trip you may take in life is
meeting people halfway.       --Henry Boye


                                       •     Factual knowledge of country
                                       •     Recognize cultural
                                             differences and similarities
                                       •     Identify biases and
                                             stereotypes
                                       •     Understand impact of world
                                             events
                                       •     Respect cultural
                                             differences without
                                             necessarily agreeing with
                                             them, to empathize, to be
                                             open-minded, and to
                                             open
                                             describe differences
                                             without judging

                               Source: University of NC                     -22-
Recommended Reading
 Stop worrying about the potholes in the road and enjoy
 the journey.   --Babs Hoffman


• Cross-Cultural Business Behavior by Richard R. Gesteland
         Cultural
• Cultural Issues in Business Communication by Rob Sellin, Elaine
  Winters, Robert H. J. Sellin
• Do's and Taboos Around The World by Roger E. Axtell (Editor)
• When Cultures Collide - Managing Successfully Across Cultures by
  Richard D. Lewis
• Global Business Negotiations: A Practical Guide by Claude Cellich,
  Subhash C. Jain
• Global Marketing and Advertising: Understanding Cultural
  Paradoxes by Marieke de Mooij




                                                                  -23-
Cassel International
The rewards of the journey far outweigh the
risk of leaving the harbor. --Unknown



                                              • International Business
                                                Consulting Firm
                                                – Marketing Services
                                                   • Global Market Research
                                                   • Competitive Analyses
                                                   • Trade Show Management
                                                     (Before, During & After)
                                                   • Marketing Planning
    Go Global and Grow Global!
                                                – Cross-Cultural
   www.casselinternational.com                    Communications Training


                                                                                -24-
Parting Thoughts
 Travel has a way of stretching the mind.
 The stretch comes not from travel's
 immediate rewards, the inevitable myriad
 new sights, smells and sounds, but with
 experiencing firsthand how others do
 differently what we believed to be the right
 and only way.
 --Ralph Crawshaw                          Cross-Cultural Awareness is fatal to
                                                prejudice, bigotry and narrow-
                                               mindedness. Broad, wholesome,
                                           charitable views cannot be acquired by
                                              vegetating in one little corner of the
                                                             earth.
                                              --With Apologies to Mark Twain




                                                                                       -25-
Questions?




             26

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The Forgotten Factor

  • 1. The Forgotten Factor: Effective Communications for the Global Executive Carol Webster Owner, Cassel International 1
  • 2. Globalization Defined • Tying it All Together – Iraq – Kuwait – England – Japan – Spain – Germany – U.S. • Brand It Like Beckham! -2-
  • 3. Why Do Business Overseas? If you want to succeed you should strike out on new paths rather than travel the worn paths of accepted success. John D. Rockefeller, Jr. 14000 • Global economy 12000 • Expand customer base 10000 Canada • Lessen impact of domestic Mexico downturn 8000 UK • Tennessee ranks 17th in 6000 China exports among U.S. states Japan 4000 • TN exports – transportation TOTAL 2000 equipment, computers/electronic products, 0 2000 2001 2002 2003 chemicals, machinery Source: OTEA, ITA, U.S. Dept. of Commerce -3-
  • 4. Checklist for Doing Business Overseas A journey of a thousand miles must begin with a single step. - Lao Tzu • Identifying Specific Potential Markets • Assessing Your Company’s Potential • Selecting the Right Distribution Channels • Promoting Your Product • Overseas Transportation • Foreign Credit & Collections • The Forgotten Factor?? -4-
  • 5. The Forgotten Factor? The Gentle Reader will never, never know what a consummate ass he can become, until he goes abroad. --Mark Twain, part of travelog from his trip to Egypt Mark • Cross-Cultural Awareness • Difference between success or failure – Business environment – Personal/social environment • MUST be on the checklist -5-
  • 7. Why Cross-Cultural Communications? • Offer riches of cultural diversity – Come from around the world – Speak more than 380 • Over 11 % of the U.S. different languages population is foreign-born • (1) child in (5) is an immigrant or an immigrant's child Source: www.learnaboutcultures.com -7-
  • 8. Communications Defined In travelling; a man must carry knowledge with him, if he would bring home knowledge. Samuel Johnson from Boswell, Life of Johnson, 1791 • From the Latin root “Communis” – Having something in common – Sharing • Not the act of sending a message, but the achievement of understanding Source: Donald K. Smith, Make Haste Slowly “Developing Slowly, Effective Cross-Cultural Communications” -8-
  • 9. Test Your “IQ” (International Quotient) • What a beautiful vase! •I’m looking forward to I’m working with my English colleagues. Oh, I couldn’t possibly drink that now…. Source: www.learnaboutcultures.com -9-
  • 10. Test Your “IQ” (International Quotient) • Why won’t they call me back? Would you care for a sweet? Es ist mir eine Freude, Herr Schmidt, Sie kennen zu lernen. Source: www.learnaboutcultures.com -10-
  • 11. Where do Communications Problems Arise? You gotta know the territory! --The Music Man The • Names • Words • Touch • Dress • Body Language • Negotiating Styles • Humor • Gift-Giving • Dining -11-
  • 12. What’s In a Name? Coca-Cola - Bite the Wax Tadpole Chevy Nova • First names are last names (or not?) – China, Latin America • Hey Joe! • Business Card Etiquette – What to include – Have them translated! – Presentation -12-
  • 13. “Words” to the Wise “Nothing sucks like an Electrolux.” • Why Don’t They Speak English!!! – The soldier decided to desert his dessert in the desert. – After a number of injections my jaw got number. – The bandage was wound around the wound. – The farm was used to produce produce. • Learning a Different Language – 10 phrases you should know – Beware pronunciation and emphasis!!! – Effort is rewarded • Working with a Interpreter -13-
  • 14. Globalization through the Internet Fly Naked! - Braniff • 60% of all internet users reside outside U.S. • Non-U.S. portion of e-commerce almost doubled commerce from 1998 – 2003 – 26% 46% • Translation vs. “Localization” – Sign, symbol, color, image and date conventions – Currency issues – U.S. lags behind – Translation must be accurate – “Many Markets, One Message Message™” Source: International Data Corp. -14-
  • 15. A “Touchy” Business Seen in a hotel elevator in Paris: Please leave your values at the front desk. • How Cultures Differ – Some cultures don’t like casual body contact – Some cultures touch a LOT! • Man-to-man or woman-to to-woman • Bow How • You’re in my space! -15-
  • 16. Dress for Success •Drop your trousers here for best results. (Seen at a Taiwanese laundry) Drop • When in Rome – Try not to stand out – Don’t try to pull off local dress/costume • General rule is Conservative! – Traditional dark suit w/ white shirt for men – Dress or skirt-suit for women suit • Informal dress acceptable sometimes – Warm cultures • Shoes on or off? • How to identify an American overseas -16-
  • 17. Actions Speak Louder than Words •Stop -- Drive sideways. (Detour sign in Kyushi, Japan) Eye Contact – Look me in the eye .or not Nod Yes for No Facial Expressions Put on a happy face! Poker Face Wave Bye-Bye! Gestures Thumbs up or down Everything is A-OK V for Victory Hook ‘em Horns! -17-
  • 18. Negotiating Styles “ . . . .Voyaging through strange seas of thought, alone.” --WILLIAM WORDSWORTH • Cultural Context – High context vs. Low context (Subtlety vs. Lay It On the Line) – Collectivism vs. Individualism • What is a contract? – Starting or ending point • When Yes Means No and Vice Versa • Friendship first, then business • Adversarial relationship or not • Time concepts -18-
  • 19. Funny You Should Ask .. Advertisement for donkey rides, Thailand: Would you like to ride on your own ass? • Humor, Religion, Politics and Sex – Not forbidden, but tread lightly! • Understanding Smiles & Laughter – Happiness? – Embarassment? – Hide True Emotions? -19-
  • 20. Beware of Colleagues Bearing Gifts In a Budapest zoo: Please do not feed the animals. If you have any suitable food, give it to the guard on duty. • When It’s Important • Potential gift gift-giving gaffes – Japan – Dozen red roses – Middle East, Latin America, Pacific Rim – Knife – Elsewhere – Bottle of alcohol – Leather items • What to Give – Unique products from your state or region – Something to represent your city or state – Music – Parker Pens -20-
  • 21. Eat, Drink and Be Wary “I’ll have the chicken with estrogen sauce” ..Heard in a Prague restaurant • Don’t ask “What’s for dinner” – Not knowing is sometimes better • Pass the sheep’s eye please . – Offerings likely to be host country’s “specialty” – Unfamiliarity doesn’t mean bad • Eat what’s offered • At LEAST a few bites • Slice it thin • Tastes like chicken! • Be prepared for time differences • Alcohol Awareness -21-
  • 22. Achieving Cultural Competency The most important trip you may take in life is meeting people halfway. --Henry Boye • Factual knowledge of country • Recognize cultural differences and similarities • Identify biases and stereotypes • Understand impact of world events • Respect cultural differences without necessarily agreeing with them, to empathize, to be open-minded, and to open describe differences without judging Source: University of NC -22-
  • 23. Recommended Reading Stop worrying about the potholes in the road and enjoy the journey. --Babs Hoffman • Cross-Cultural Business Behavior by Richard R. Gesteland Cultural • Cultural Issues in Business Communication by Rob Sellin, Elaine Winters, Robert H. J. Sellin • Do's and Taboos Around The World by Roger E. Axtell (Editor) • When Cultures Collide - Managing Successfully Across Cultures by Richard D. Lewis • Global Business Negotiations: A Practical Guide by Claude Cellich, Subhash C. Jain • Global Marketing and Advertising: Understanding Cultural Paradoxes by Marieke de Mooij -23-
  • 24. Cassel International The rewards of the journey far outweigh the risk of leaving the harbor. --Unknown • International Business Consulting Firm – Marketing Services • Global Market Research • Competitive Analyses • Trade Show Management (Before, During & After) • Marketing Planning Go Global and Grow Global! – Cross-Cultural www.casselinternational.com Communications Training -24-
  • 25. Parting Thoughts Travel has a way of stretching the mind. The stretch comes not from travel's immediate rewards, the inevitable myriad new sights, smells and sounds, but with experiencing firsthand how others do differently what we believed to be the right and only way. --Ralph Crawshaw Cross-Cultural Awareness is fatal to prejudice, bigotry and narrow- mindedness. Broad, wholesome, charitable views cannot be acquired by vegetating in one little corner of the earth. --With Apologies to Mark Twain -25-