Understanding business protocol: no first names please

Black Enterprise, April, 1995 by Wiley M. Woodard

Entrepreneurs looking for business opportunities abroad would do well to brush up on more than just the "Where is my umbrella?" type of conversation that most people learned in their high school foreign language classes. A few stock phrases and an innovative product alone won't cut it.

Not long ago several entrepreneurs found themselves in an Egyptian jail. Their crime: discussing Christianity with people who inquired about the basic tenets of the religion. They were accused of debasing Islam. Unlike the United States judicial system, the courts in many foreign countries assume you are guilty until proven innocent.

"This incident illustrates the importance of learning about the culture and business practices of the country you are looking to develop business relationships with," says LaJoyce Lawton, president of Indianapolis-based Lawton International. Lawton began her firm in 1989 to assist executives in learning the business protocol of foreign countries. The firm has conducted pre-deployment seminars for Europe, the Middle East, the Pacific Rim, Latin America and Africa.

One firm that sought Lawton's services was the Halliburton Co. The Oklahoma-based international oil business had encountered problems managing the work teams it was sending abroad.

Over a two-year period, Halliburton's middle managers received training that included intensive all-day sessions. Case studies of firms in China were used as models of the business protocol areas the company needed to address.

"In the beginning, some executives were resistant to the training," says Lawton. "They felt they didn't have any problems dealing with people from different cultures. But they soon began to admit they were more challenged by the cultural differences than they originally thought."

Experts are quick to point out that Japanese companies prepare their employees in business practices and language for at least three years before they are sent on an overseas assignment. Japanese executives are usually matched with a mentor who helps them get adjusted to the new culture and country, notes Kathryn D. Leary, publisher of Japan Watch, and president and CEO of the Leary Group Inc., an international marketing and communications firm in New York.

Ignorance of local customs can jeopardize any prospect of building a strong international link. For example, notes Leary, business professionals ordinarily should avoid becoming informal and getting on a first-name basis with their foreign counterparts early in a business relationship. More so than in the United States, titles, rank and status are extremely important to these executives.

On the other hand, people in the United States try to respect the personal space of others by not standing too close to them. But in some countries executives stand very close to each other when speaking. They may hug, link arms while walking down the street or even kiss one another once a rapport is established.

Lloyd Pilgrim-Spooner, head of the New York-based Association for Minority Exporters Inc. (MEXIM) advises business owners and professionals to join associations that have international chapters. They should attend overseas conferences and international trade shows, and speak with bankers familiar with overseas markets. Pilgrim-Spooner further suggests that entrepreneurs read as much as they can about the country they're planning to do business with.

RELATED ARTICLE: WHERE TO GO FOR HELP

There are several possible sources of assistance for smaller companies or entrepreneurs interested in learning about foreign customs and practices. Seminars are offered by world trade clubs and training institutions such as the World Trade Institute in New York. Your nearest office of the U.S. Department of Commerce should be able to give you the names of other organizations.

Contact organizations that sponsor trade missions, such as New York's Association for Minority Exporters, Inc. (MEXIM); 212-673-3280. The Service Corp. of Retired Executives will also offer you assistance. For the chapter nearest you, call 800-634-0245.