Learning about other cultures is a cultural thing. We tend to use our own models when we address the issue of cross-cultural competence. How do we know this? Those of us who have run programmes around the world will have seen in action the learning preferences of different nationalities again and again. Are they in fact preferences? Or are they rather routines? This is the way we’ve always learnt things; this is more of  the same in terms of substance and range of issues. Do people shy away from unfamiliar learning processes and search for the comfort zone of habitude?

Westerners hate the prospect of learning stuff by rote, of memorising, of processing large quantities of data. Just give me the three-bulletpoint presentation, they seem to say. Reduce the thing to basics, give it to me in logically-connected arguments and supply evidence that would stand up to the scrutiny of debate. Make it relevant to me as an individual and show me what’s in it for me?

East Asians also clamour for the familiar: what’s the etiquette (shades of Confucian li: proper conduct of rituals)? Which knife and fork must I use? Give me the data and test me on it in multiple choice formats. Don’t single me out or ask me to show my knowledge/skills too openly in front of others. Don’t expect me to answer back or challenge much.

So, where would we be if all the management science models had not come out of the USA (and Northern Europe)? What if they had come from Confucian East Asia or the heart of Islam? Maybe, they did! Management and leadership styles handed down from one generation to the next but not captured in books on sale to the hungry air-traveller on her way to the departure gate, but kept inside the organisation for the betterment of their own group but not for general dissemination.

What interests me is : how many East Asian companies are beginning to think: “Hey! This western style is all very well, but we’ve outgrown most Western companies over the last decade. Why change a winning formula?”

Does anyone know about stuff like this? Any comments?

It’s bound to happen. Sooner or later in this century, the world will wake up and realise that all the bosses are Asian. How will that be?

This thought only struck me forcefully the other day when I heard about the beginnings of a Chinese venture outside China and I was talking to someone else about Arcelor Mittal. Yes, of course, by the time I have retired and set about improving my golf swing, Chinese and Indian enterprises will be strong and vibrant and in Western faces. How will that be?

This post has to be short, but all comments welcome.  What is your prediction?

Chan Mool Eu Do We Ahrye Ka Itda
There is up and down in a cup of cold water
When I first heard this Korean proverb, I was very puzzled. What on earth could it possibly mean? Is it like “the glass is half full or half empty”? No. Is it to do with good times and bad times? No. A complete puzzle. Then I began to think about proverbs in general. What are they? They are, of course, expressions of some truth accepted by most members of a particular culture, in this case Korean. We have to accept that any culture makes very good sense to itself; it is our job to work out how and why. Curiosity is the key.
So how can we begin to summarise the key messages in how to do business with Korean companies? Let’s divide the job into three parts, each based around a Korean proverb.

Pal-eun-an-euro gup neun da
Arms bend inwards

The geography and history of Korea tell us how hard life has been for this peninsula. Because of their position in the region, they have been invaded by their much larger neighbours again and again over the centuries. Add to that the fact that the mountain range at the north of the peninsula effectively cuts them off from the mainland and we can understand how they have developed particularly defensive attitudes to foreigners. Whilst these attitudes develop in many other countries, in Korea the feeling is especially strong; to the extent that behaviour differs sharply depending on whether they are dealing with an accepted business partner or just a stranger (even more so a foreign stranger). In sociological terms, this is to do with in-group/out-group discrimination. If you are one of “us”, the treatment will be very different, and much warmer, than if you are one of “them”. In the end, this leads to a system of relational ethics: “I will behave completely differently depending on who I am interacting with“. This is in stark contrast to the absolute system of ethics which we in Europe generally subscribe to and which are perhaps best summarised in the Ten Commandments. Koreans look after their own – it is only natural to do so. After all, as the proverb says “Arms bend inwards”. They don’t bend outwards!

So what does this mean for us?

• It takes time and effort to become one of “us”.Don’t expect to rely on the strong logic of your business offer to win over Korean customers

• Koreans generally would never dream of doing business with a stranger; they will need some time to become comfortable with you. Don’t expect to walk out with a contract from the first sales visit. Spend time and money on building relationships.

• This also means that contracts have a very different status from in Europe. If you have a good relationship, why worry about what is written down on a piece of paper? Surely, everything is re-negotiable between friends!

• Be extra-sensitive to Korean feelings about their position in the world both economically and technologically. Having been ruthlessly exploited by foreign invaders over the centuries, they will show extreme sensitivity to any sense of being patronised or treated as less developed.

This occurred recently when management consultants from the West were drafted in at the instigation of the IMF and their own government to “upgrade” business structures in the chaebol (conglomerates). Within a couple of years, when the Korean economy demonstrated a tremendous recovery from the Asian financial crisis, the Westerners were soon shown the door. Arms bend inwards.

strong>Mo nan dol yi jung mat-neun da
Sharp stones get hammered flat.

If a country suffers, as Korea does, from low natural resources and high population density (for statistics see http://www.cia.gov/cia/publications/factbook/geos/ks.html ) it is normally the case that such a combination produces a collective, group-oriented culture. In the Korean case, this means that there are strong bonds between people based on blood line, regional origin and educational background – clearly something that Europeans cannot connect with. A person’s identity is fundamentally linked to the groups of which he/she is a member and most behaviour reflects this. An individual cannot survive outside the group. In Korean companies, then, until very recently, individual initiative was not encouraged and indeed it offered only the downside risk of failure. Anyone standing out above the crowd was seen as selfish and arrogant. The group would ensure that the person was put back in his place. As the proverb say, “sharp stones get hammered flat”.

This aspect of culture is changing fast in 21^st century Korea. Young people are being asked to show much more initiative and, somewhat unhappily in some cases, older people are accepting the change in relative status and power. One big question therefore is : how old is the person you are dealing with? Almost certainly, if the person is over 35, he (sic) will be operating according to collective principles.There should be “inhwa” (harmony) between colleagues, reflected in “kibun” (good mood, good atmosphere) in the office.

So what does this mean to us?

• Speaking the truth plainly can be hurtful and damaging to a relationship, especially when spoken in front of others.If it is absolutely necessary to make a point that is likely to cause loss of face or embarrassment, it is best to do it 1-1 and away from the formal meeting-room.

• Present an orderly face to your Korean clients. Formal meetings in Korea are exactly that – formal! This means it is not a free-for-all in which any participant can feel free to say what s/he likes at any time. Although Europeans enjoy and are good at arguing and debating, the temptation to score intellectual logic points should be avoided.

• If your Korean partners become unreasonable or extremely demanding, you can be hard on the issue, but should be soft on the people. You must maintain self-control even in extreme circumstances.

Chan Mool Eu Do We Ahrye Ka Itda

There is up and down in a cup of cold water

Korea is a Confucian culture. That means they have followed the principles of Confucius in organizing themselves at national, local and especially family level throughout the country for hundreds of years.The principles are based on the notion that the best guarantee for stability is to model society (and organizations like companies) on the family. The family of course is based on unequal status: everybody knows their place and is content with that. There is a clear hierarchy in the family, which is itself strongly patriarchal. In modern business situations, this means that Korean companies are invariably more “vertical” than European ones. The largest companies (chaebol) like Samsung, Hyundai and LG are still family-owned and family-run. At middle and junior levels in these companies, there is extreme sensitivity to the established hierarchies and care is taken not to cause loss of face. Young Korean staff-members are specifically taught exactly how to recognize senior people and how to behave in their presence. Any tensions, or contradictions during the working day are often dealt with in drinking and singing sessions after the working day, where there is some escape from hierarchical power. But in everyday working life, there is no escape. It applies to everything. Even with a cup of cold water, it is only right that the oldest man should take the first sip. As the proverb says, “There is up and down in a cup of cold water”.

So what does this mean to us?

• Match your hierarchy with theirs. They will want to know who is the boss of whom and they will expect this to be reflected in correct behaviour from the junior (less senior).This doesn’t mean that European juniors should show unnatural deference to their bosses. Be yourself, but be aware and sensitive to such hierarchical issues.

• Don’t argue with the Korean boss in front of his juniors.

• Don’t ask the very senior managers detailed technical questions. They probably don’t know the answer and could be embarrassed. That’s why the junior guys are also in the meeting!

• Use 1-1 meetings as much as possible (since no-one can lose face 1-1).

• Never refuse invitations to socialize: it’s often the place where real business takes place, free from hierarchical and formal considerations. It’s also the unmissable opportunity to get to know your partners at a personal level.

• Invite visiting Koreans out when in Europe.

Finally, the subject of communication. Interpreters are fine, if you use them properly. However, it’s hard to develop personal relationships through one.This probably means that you will have to speak Offshore English.

Offshore English is the real language of international business used in most dealings throughout the world. It is used between non-native speakers of English and is generally very effective. It does not have the sophistication of native English, and there are some defects in the language (grammatical mistakes, false friends, etc) but it is simple and clear. You may well find that Koreans, whose average ability in English is considerably lower than most Europeans, often find it is easier talking to Germans than British or Americans.

Some rules for achieving the clarity that both sides need:

• Speak at a steady pace. Ask yourself if you are a fast talker; if so, slow down (but not too much).

• Keep it short and simple: KISS

• Check understanding regularly. Summarise regularly and in detail at the end.

• Ask open questions to make sure the conversation is not one-sided.

• Use clear written agendas for meetings and make it clear when you are changing the subject.

But most of all,

Be prepared to go further than just being polite.Business in Korea is personal.

In my work as a consultant and trainer in intercultural management, I have had considerable recent experience of rolling out conflict management programs to groups of managers and directors from Asia (Japan, Korea, China, India and Singapore),  Europe (Switzerland, France, Germany and the UK) and the USA. This short article lays out a number of observations and conclusions on the cultural dimension to the subject of handling conflict situations.

Imagine you are a middle manager in an American multinational enterprise. You are Japanese, based in Singapore, working for a German boss. It is 5.15pm on Friday. For the fourth time this quarter, your boss has called you in and requested you to work most of the weekend to complete a sales proposal to a major client which has a Monday morning deadline. You had planned and booked tickets for a family weekend break on Pulau Tioman (one of the reasons for joining this world-class company was to avoid the karoshi [1] syndrome!). Your boss cannot do this work herself as she is flying off to Bangalore on business in two hours. What do you do? How do you handle this?

If we define conflict as “tension, hidden or revealed, relating to incompatible or competing needs, attitudes and values”, we see that cultural preferences can significantly impact the way an individual chooses to handle situations like the above. Attitudes to one’s superior, a predilection for harmony in the workplace, views on work/life balance will all play a part in determining the forces at play. These are essentially social and cultural factors, labeled by academics in the field as Power Distance and Individualism/Collectivism (Hofstede, Triandis et al).

Most of the research in the field of conflict management derives from work done in the USA and it is not therefore surprising that the categorization of conflict-handling strategies is essentially based on culturally American premises. For instance, a Competing strategy (assertion of one’s own needs without regard for the needs of others) is set diametrically against Accommodating (letting others’ needs predominate over one’s own) and Avoiding (refusal to address anyone’s needs). The other categories are Collaborating (dedication to meeting everyone’s needs even if it takes a long time) and Compromising (preparedness to give and take to reach a solution speedily). With Northern European and American audiences, common associations with the non-assertive strategies are fear, weakness and time-wasting – i.e. people who Avoid the conflict situation “haven’t got the guts to deal with it” or “don’t focus enough on getting the job done”. Asians however understandably tend not to see these strategies as necessarily negative. Indeed, maintenance of in-group harmony is very definitely a good thing. Also, the preparedness to take a longer view (by avoiding/accommodating now, I can maybe gain advantage later) is associated more strongly with wisdom and a broader view. There are of course echoes of Sun Tzu and Confucius and martial arts philosophies in all this. As will by now be clear, intercultural conflict is therefore infused with misperceptions and misinterpretations which often lead to mistrust or lack of mutual respect. What is missing in these cases is a wider and better informed perspective on cultural differences and associations. Culture, as well as Conflict, becomes a “problem”.

In fact, one of the major challenges in handling conflict effectively is to reset often deep-seated attitudes to the whole subject. Getting business directors and managers to free-associate around the word “conflict”, as I do frequently ,  produces a long list of negative and destructive ideas: words used include difficult, hard work, stress, anxiety, discomfort, anger, frustration, mistrust, different (alien) styles etc. Through focused discussion and practice of appropriate techniques, however, it is possible to get people to see that we can transform this negative mindset into something altogether more positive, creative and opportunistic (as opposed to threatening). Conflict well understood and well handled can free us from inertia, can generate energy and ideas, and even build cohesion in working teams. Result: a positive outcome and an opportunity seized to convert short-term irritation into a long-term beneficial shift in boss-subordinate relations. The Japanese manager in our earlier scenario requests and succeeds in getting a rigorous and comprehensive re-assessment of reasonable operating procedures as a quid pro quo for yet again sacrificing his family weekend.

The business case for training interventions that combine cultural awareness with conflict-management techniques is therefore clear. Retention of good staff can be substantially improved by enabling managers to transform potentially damaging situations into growth possibilities for all concerned. Whilst it cannot be denied that changing mindsets is hard work, payback can be substantial.

Bill Reed
Managing Consultant, East Asia Business
www.east-asia-business.com

[1] Karoshi is translated as “death through overwork” – a recent Japanese phenomenon, now widely accepted as regrettably excessive dedication to the company