America Chamber of Commerce (HK)

Lessons in Communication

Marrying Western Business Philosophy & Chinese Culture

AmCham Hong Kong

Douglas Menelly October 26, 2010

 Popular Misconceptions

 Research Methodology

 Themes covered in the book

 Communication

 Culture

 Misunderstandings

 Heuristics – “Takeaways”

•  China is fundamentally “different”

•  Only locals can truly understand and manage the Chinese system

•  The body of law in China is limited and/or incomplete

•  Focus on financial metrics is key – administration and compliance are secondary considerations

•  If problems arise, they are “fixable” because the system is “flexible”

 Experience: Four years of observations, study, & analysis

 Surveys & Interviews

 Survey Recipients:   20-questions   Distributed to 30 Western Executives

  Multiple industries

  PRD - Shenzhen, Shanghai, Guangzhou

①  Performance Management

②  Participatory Management

③  Compensation

④  Morale

⑤  Office Culture (the Informal Network)

⑥  Problem-Solving, Decision-Making, & Critical Analysis

⑦  Independent Thinking & Creativity

  It works in New York & London, so it will work in China, right? WRONG !

  Contracts are often the first step for a relationship in China, not the first step in executing a deal

  Chinese Culture & Western Business collide – what next?

  Crash Course for Foreigners

 Misunderstandings: lack of knowledge of Chinese culture, history, language

 Culture Confusion: To strengthen communication and relationships, foreigners need to study the culture and history

 Assumptions: Westerners working in China are not “at home” and wrongly make many assumptions on how to work with a Chinese business partner or company

1)  Accountability: maintain morals

2)  Prepare, Prepare, Prepare

3)  Focus on Values 4)  Ethics

5)  Do not make assumptions

6)  Be patient

7)  Ask Chinese friends for advice

8)  Study the culture 9)  Learn Mandarin

10)  Ask Questions!

I hope you enjoy the book!

Book Reviews, Comments, Video Clips, TV Interviews, and more available on my website

www.menelly.com

doug.menelly@gmail.com

Courtesy: Korn/Ferry