The Changing Impact of Western Culture | DOING BUSINESS IN CHINA

Doing Business In China with Dan Paulson

In order to be successful, Western approaches to management in China will need to change.

I recently read an article published by McKinsey Quarterly that discussed the impact of expatriate managers in China (Beyond expats: Better managers for emerging markets). Multi-national companies face specific cultural challenges when bringing in an expat. Not to mention that local talent will look elsewhere for opportunities to take a greater leadership role. In other words, as you seek to grow your business in China, it is more important than ever that you find ways to tap into the local talent pool.

As a business that helps companies expand into China, I believe there is a collaborative approach that needs to be taken. We need to show our willingness to give local leadership a chance to grow within our organization and we also need to transfer a little of our own cultural values as part of the process. For that reason the duties of an expat leader may change.

It's been no secret that keeping talent in China can be tricky. A recent study claimed that as many as 50% of the expatriates that come to china leave within the first year. That's one out of every two people who are not fulfilling their commitments! Think of the costs associated with hiring, relocating, establishing, and training someone to fill what is often a minimum two year commitment. Not to mention that many times these people come back early knowing they are unemployed. It is common practice to build a dis-incentive that if you return early, you give up any employment with the organization you work for.

So what might be a better approach. Here is where we need to find balance, understanding and good communication. The balance comes from having just the right amount of Western interaction with the foreign leadership and the Chinese leadership. We see similar things going on in our own country. Many foreign companies understand the value of hiring local talent instead of importing management from abroad. When tapping into the local pool, you don't necessarily have to worry about culture shock for a new candidate coming in. Here it may be easier to bring in talent for extended stays, but not for a two or three year window where you risk losing good talent.

For me, it is always important to graft in a piece of your corporate culture. In China, it's a matter of adapting. The Chinese have a very powerful cultural presence. You aren't going to change it. However, to some degree you need to be able to carry over your Vision and corporate values. This is why I believe it is important to create a strong interrelationship with local and Western management. Any staff that travels abroad needs a thorough education of the culture and how business is handled. In addition, each expat should have a solid understanding of customs and behaviors so they are able to find ways to adapt while they are on site.

Finally, communication is essential. Without good communication, it's hard to build trust. It is also difficult to deliver the quality and service you are known for. This is closely tied to understanding the culture. Remember, what you believe is important may not be the same in a foreign market. You really need to share what you place value on.

Any organization seeking to do business in China could have a great opportunity. That opportunity will be weighed against their willingness to adapt to a new market they may not fully understand. Educate yourself and understand how you can collaborate for success. The potential to grow your business can be great!

www.invisionbusinessdevelopment.com

For more information, please visit Dan's TNNWC Bio.

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The Changing Impact of Western Culture | DOING BUSINESS IN CHINA

Emerging Markets Provide Opportunities for Business Growth | DOING BUSINESS IN CHINA

Doing Business In China with Dan Paulson

When expanding into China, look no further than... Hangzhou, Tianjin, Xian...

With China now occupying second place behind the US in the world economy, its no secret that opportunity exists there. Upon traveling to China in 2009, I witnessed tremendous growth. I would often joke that you could walk atop the high rise cranes from Beijing to Tianjin and never have to touch the ground. That is as true today as it was then. China has been going through a period of dramatic growth. Companies that are well positioned and intelligent about their approach stand to significantly increase their revenue through international expansion.

Often companies look to the power markets in China when they enter the country. Some believe their greatest opportunities are in Shanghai or Beijing. The truth is these markets represent a very small part of a vast and rapidly growing economy. In a recent report on China's Emerging Markets put out by the US Department of Commerce, it is important to note that the key to China's economic growth aren't the most recognized cities. Instead, 53% of China's total imports comes through "second-tier" cities. Shanghai, Guangzhou and Beijing represent the megacities with enormous populations while other cities such as Tianjin are smaller. Of course smaller is a relative term considering Tianjin has a population greater than 11 million people.

The truth is these second tier cities have a lot going on. They are centers for trade and logistics. Some even are centers for tourism (such as Xian). What's important to remember here is when it comes to trade in China, everyone thinks of Beijing or Shanghai. The numbers speak for themselves. Not only is it much more difficult to get things going in these mega-cities, it is also easier to get lost in the shuffle.

Consider Tianjin for a moment. Most people wouldn't know where to look on a map to find it. Yet it is one of the largest port cities in China and provides a direct line of supplies to the northern cities including Beijing. The TEDA (Tianjin Economic Development Area) is home to most of the Fortune 1000 companies and works aggressively to bring business into the country. This provides much greater opportunities than Beijing.

Since opening my foreign office a few years ago, I have been impressed by the willingness of these second-tier cities to facilitate business growth. When people ask my "why Tianjin?" I have plenty of reasons to share. For those seeking to grow in an emerging market such as China. The opportunities exist if you know where to look.

www.growinchina.com

For more information, please visit Dan's TNNWC Bio.

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Powered By TNNWC Group™

For complete tactical and strategic business planning, marketing, media, lead-generation, technological and capital resources, scalable solutions and tools to support every entrepreneurial start-up, young enterprise, small- to medium-sized business and emerging high-growth company, talk to The National Networker Companies™/ TNNWC Group, LLC.

We are a collaborative entrepreneurial, creative organization offering you hands-on, personalized assistance in every aspect of achieving your monetization, profitability and financial sustainability objectives, domestically and globally.

We don’t just coach you or offer you pre-packaged, push-button solutions – we listen to you, analyze your exact needs, and work within your budget to: 1) create your tool kit and 2) work as your partner to implement your plan by supporting you in the most efficient and productive use of every tool.

Visit our website, which is located at http://www.TNNWC.com .

To receive our newsletters, publications, information bulletins and alerts, simply join us as a Member. Membership is free and the benefits are unequalled anywhere.

Just go to our home page, and click on the “JOIN US” button.

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DOING BUSINESS IN CHINA: Travel Abroad: Becoming a Seasoned Travel Veteran Can Expand Your Reach Globally

Doing Business In China with Dan Paulson

When planning travel abroad, follow these steps to make your trip more enjoyable and successful.

The world is becoming a much smaller place these days. The opportunities to expand your business are endless. Though many of us don’t see ourselves as road warriors, it will be important to make those trips overseas if you wish to expand your business internationally.

Travel is about more than hopping on a plane to get to where you need to go these days. There are passports, visas, and cultural issues that you need to be prepared for when the meeting takes place in another country. Often there are misconceptions about foreign travel. What was true years ago may not be so today.

We have all heard the travel horror stories. I was recently speaking with someone about travel to China. He shared his experience of his trip in the early 90’s to a city in the southern part of the country. By the sounds of it nothing went right. The airline had lost his luggage, he got sick from the food, couldn’t drink the water, the hotel was a flea trap, etc. This has been nothing like my experience.

China, as well as many other countries, has changed in recent years. Old hotels, poor water quality, and a general concern for safety has diminished significantly in recent years. During my last visit, I navigated my way between Beijing and Tianjin with only a few cards telling the drivers where to take me. Even for large cities, I felt safe. And trust me, a Midwestern boy in the middle of China sticks out like a sore thumb. I found the food was great, the water was fine, and the hospitality of the people was wonderful. That should not discount the fact that traveling to ANY new environment requires taking certain precautions.

The rules of seasoned travelers:

Visas and Passports – Today any travel abroad requires a passport. The need for a visa depends on the country, length of stay, and nature of the trip. For China, a visa is required for entry. In fact, you will not be allowed to board the airliner without first letting the flight attendants make sure your visa is current. Trust me, you don’t want to fly on a plane for thirteen hours only to have to immediately fly back. Whenever you have questions about international travel, defer to your government. In the US, travel.state.gov is the site to visit.

Be informed – The US has the Smart Traveler Enrollment Program (STEP) which will help you with your trip. This can help you stay connected with the consulars and embassies in the country you are traveling to. They will also notify you of any warnings or alerts.

Flying – Airlines are notorious for losing luggage. About 25 million items of luggage are lost each year. This equates to about a one in a hundred chance that you will lose an item each time you fly. (Source: Airport Transport Industry (ATI) baggage report) Make sure your bags are labeled well and any old destination tags are removed. You will want to keep any essentials with you to get you by should something happen. Also, there is less of a chance to lose your luggage if you have fewer transfer flights. It’s always best to take the most direct flight possible. Finally, if you are taking a short trip, pack a carry on.

Know the region – Traveling to the interior of China is much different than traveling to a large city such as Beijing. Know where you will be staying and what’s around you. During my last trip, I stayed in downtown Tianjin. The hotel I stayed at was inexpensive and clean. The amenities weren’t the same as a four star hotel, but they served my purpose. There were several quality restaurants in the area as well as chains such as McDonalds and KFC. Though densely populated, the area was safe and modern. I walked the streets alone in the evening and encountered no problems.

Know your surroundings – This should be true whether you are in a city in the US or abroad. Dangers occur when people do not pay attention to what’s going on around them. Pay attention to who is around you and what is happening. Not only will this allow you to enjoy your environment more, it will help you avoid problems or dangers.

Food and water – Anytime you don’t prepare food yourself, you are entrusting another person to do it correctly to avoid food borne illness. While many of us have experienced poorly prepared food, we can take precautions to help minimize the chances of getting sick. First inspect as much of the area as you can. The smaller the food joint, the easier it is to see how they prepare their food. When in doubt, trust your gut (yes, pun intended here) and avoid eating at that establishment. Ask the locals where they recommend. Many times hotel staff, or business connections can make recommendations on where to go for a good meal. As for water, most newer hotels and restaurants have their own filtration. If you are unsure, use bottled water to be safe.

Culture – No matter what country you are from, not paying attention to local custom and culture will make you look like a poor traveler. Understand where you are going and who you are going to meet with. How do they like to be addressed, what are the customs for greeting? For example, in China, a handshake is customary in initial greetings where in other parts of Asia bowing is the norm. Learn enough of the local language to cover some basic needs like finding a bathroom, getting water, or getting food. Most importantly, know what’s offensive. Things we take for granted here can be highly offensive somewhere else. I find people are more than willing to help if you make an attempt to first communicate at their level.

Enjoy it! – Too few people take the opportunity to soak up a new cultural experience. Be open to the new world around you and seek out ways to make the trip enjoyable for you and for others. Experiencing the world on a global scale helps create understanding. Understanding breaks down misconceptions and stereotypes. Your appreciation of others can be a key to being successful as you conduct your business trip.

For more information, please visit Dan's TNNWC Bio.

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The National Networker Publications™ produced by TNNWC Group, LLC
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DOING BUSINESS IN CHINA: Travel Abroad: Becoming a Seasoned Travel Veteran Can Expand Your Reach Globally