Category: Cross-culture

To do business we need to have some idea how people will behave. That is why operating globally and across borders requires a high level of cultural awareness.

But if all we do is gain a general idea of the culture and how they differ from us, we are likely to be unprepared.

We are amazed when the person we are dealing with does not fit the culture picture. The American we are trying to impress is in fact quiet and retiring, not brash and out there as we thought. Or the Indian we expected to be incredibly polite and reticent turns out to be brash and in your face.

Why do we get this wrong?

We have only asked one question instead of digging deeper. We have asked “What culture do they have and how does it differ from ours” – it is an important question but this is only the beginning of being prepared.

What questions should we ask in addition to the big “culture difference” one? For this I turn to a global leader in understanding culture, Andy Molinsky, a Professor of Organizational Behavior at the Brandeis International Business School. He’s the author of Global Dexterity and Reach. Here are his three questions:

Question 1: What do you know about the region? Just as it is useful to learn something about culture norms when diagnosing your situation, it is good to learn something about region norms. For example, if you were doing business in the United States and assumed that people from the Northeast would be quite similar to people from the South or from the Midwest, you might find yourself surprised. Similarly, you’d be misguided if you assumed that Southern and Northern Italy are identical or that people from rural and urban areas of China tend to act in similar ways.

For India, there are at least four major regional differences (north, south, east and west) but a country with 26 major languages has multiple regional differences.

Question 2: What do you know about the company or industry? Like countries and regions, companies and industries also have distinctive cultures. How you would interact with a boss at Google is quite different from how you would interact with a boss at Microsoft or Intel.

In India, the boss of an established company like Tata Sons is going to be very different from the CEO of the latest startup or the new telco.

Norms for behavior in the advertising industry are quite different from norms for behavior in the agricultural industry, and so on.

Question 3: What do you know about the people? Finally, ask yourself what you know, or what you might be able to find out, about the people you are interacting with. Are you communicating with a 60-year-old senior executive or a 20-something manager?

In India age differences matter enormously – there is a real generation chasm between the under 40’s and the over 40’s. People who are older are often more likely to reflect the norms of the overall society.

It would also be useful to know if the people you are interacting with are locals, born and raised in that particular setting and without extensive travel experience, or if they are cosmopolitans, with extensive travel background. Locals are much more likely to reflect the norms of the immediate region you are in, whereas cosmopolitans are likely to be open to a wider range of potential behaviors.

In many East Asian and Southeast Asian cultures, such as India, China, and Korea, relatively indirect forms of communication are used, especially from a subordinate to a superior — whereas superiors in these cultures are often quite direct with their subordinates.

Finding the answers to these questions before you cross cultures can be tricky, but it is possible. Books and articles will often give you some insight into these nuances, but one of the best ways to anticipate what you’ll encounter is by talking with expats: people similar to you who have studied, lived, or worked in the country in question.

Doing your homework before entering a new culture is one of the keys for success. But unless you ask the right questions, you might end up mistakenly overlooking the real differences that matter.

For India – keep digging, asking, researching – and persevere.

 

People often ask me “what are the main cultural differences between India and the west?”  That is, the differences that lead to misunderstanding and failure to do long term business.

For me, there are two major causes leading to a breakdown in trade and business discussions.

The first is what the researchers call Universalism vs Particularism. Universalism exists in the west – people believe you can discover what is true and good and can apply it as a general rule. Particularism is the culture of India – relationships are more important and unique situations more important, so each situation is considered on its merits.

This difference is sometimes referred to as the “absolutism” of the west (things are absolutely good or bad, right or wrong etc) compared to the “relativism” of India (things are never wholly good or bad, it depends, relationship is more central).

Universalism is the culture of USA, England, Australia and Particularism is the culture of India, China and Thailand.

When it comes to agreements and contracts you can see this difference cause divisions – the west believes what is written down is permanent, fixed, never to be changed, while India and China realise that life is constantly changing, and variations might be needed.

The second major cause of breakdown is that India is a “collective” culture, while the west is increasingly individual.

You will find in most Indian companies that decision making is a collective operation, even at Director level. Whereas in the west, a Director or Manager of a division has their yearly budget and puts a program to the board, and then gets on with it largely uninterrupted, your Indian counterpart involves the collective in almost every decision – even where the yearly budget and program are already set.

This also shows up in work styles – a western manager will set the task and assist, then largely stay out of things – whereas both sides in India will want moment by moment contact. For companies involved in the west and east, the western managers find this demand for constant feedback and contact very challenging.

Individualism is the culture in the USA, Canada and Australia while Collectivism is the culture of India, Japan and China.

I am not suggesting that one culture is “better” than the other – they are simply different, and it is important we know the difference. That way, we can adapt our behavior and succeed across cultures. Given that India has around 600 million people below the age of 25 (what a market!) we will all be better off if we can adapt and succeed together.