China in Motion

By Carol McKenzie

Have you ever wondered why so few trade missions to China end in contracts?

Through more than one thousand hours of interviews, Mia Doucet, from China in Motion, discovered answers.

• Because North Americans are unaware of Chinese business culture they move too fast to get the initial contract.
• They make mistakes in their communication.
• They spend hundreds of thousands of dollars and then hit a wall for lack of cross-cultural competence.
  

Even companies that already have a presence in China lose profits and productivity because the people who interact with their Asian customers and suppliers are unaware of the cultural issues.

Small Things Make Big Differences

“North Americans need to learn to slow down the pace,” says Doucet, “and alter the Western behaviours that elicit passive resistance. We can make small changes that have a major impact on productivity.” Here are some of Doucet’s tips.

1. Decision-Making
   
   The Western system rewards good, independent decision-making. We value the philosophy of individual accountability. We are taught to ask to speak directly to the decision maker. When customer issues arise, we demand that someone take responsibility.
   
   In China, while the senior person makes major decisions, lesser decisions are reached by consensus. In the latter case, no one person is responsible. When you pressure your Asian colleagues for a decision, you are asking them to defy their instincts, their culture, and their training. They will not act, because they cannot act alone. So the decision you want will stall.
   
   To speed the decision process, slow down. Make sure that all parties receive the same detailed information. Keep everyone in the loop.
   
   
2. Problem-Solving
   
   The freewheeling Western brainstorming practice goes against strict hierarchical codes of conduct. Successful brainstorming requires that everyone's ideas be treated equally, without hierarchy, and without regard for authority. All ideas are potentially laughable. But in a status-conscious culture, where acknowledging rank is critical to maintaining face, and where they are taught to take business seriously and not make mistakes, this presents an impossible situation.
   
   It is best to avoid it. Problem-solve logically. Allow one person to speak at a time. Defer to the one in authority. Start from the beginning and work through to a solution in a logical, step-by-step fashion.
   
   
3. Information Management
   
   Westerners have the tendency to come to the conversation only partially prepared. They feel confident in their ability to wing it. If they don't have all the necessary information, they will provide it later.
   
   The flip side of this tendency is to expect Asians to be fine with giving and receiving partial answers; however, Chinese are offended by partial answers. Lack of preparedness can cause loss of face and loss of trust. Since an Asian won't get back to you until all the facts are known, break your requests for information into smaller segments.
   
   "It helps to understand that most of your Asian colleagues are not fluent in spoken English," says Doucet. This causes shame. One of the biggest mistakes you can make is to think that they really understand what you say. This false assumption can prove costly. Most Asians understand far less than we think they do. They smile and nod and we interpret that to mean the communication is understood.
   

Fortunately, small changes in behavior can have a major impact on results. As an example, the way to communicate clearly is to talk in short sentences. Listen more than you speak. Pause between sentences. Find four or five easy ways to say the same thing. Never ask a question that can be answered with a simple yes. Avoid all slang. And skip the humour altogether.

Carol A. McKenzie is an independent training consultant and partner in China in Motion. Carol offers a full range of client services to organizations looking to increase the potential of people and to achieve business goals. She can be contacted at (519) 679-0223 or email carolmckenzie@rogers.com. Visit her Web site at www.carolamckenzie.com.

Published in Networking Today, April 2005.