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How to Develop Asian How to Develop Asian Mindset for doing Business Mindset for doing Business in Asia in Asia K D Bhardwaj Senior Program Officer, Industry Department Asian Productivity Organization Tokyo, 18 October 2012

How to do business in asia

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Page 1: How to do business in asia

How to Develop Asian How to Develop Asian Mindset for doing Business Mindset for doing Business in Asiain Asia

K D BhardwajSenior Program Officer, Industry DepartmentAsian Productivity Organization

Tokyo, 18 October 2012

Page 2: How to do business in asia

Tip No. 1: Understand other cultures

Make sure you read about the country, its history, and its traditions

Make sure you interact with the Asian people

Make sure you watch Asian films, TV shows

Make sure you read books about their customs and practices

Note: Culture defines social structure, decision-making practices, and communication styles.

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Tip No. 2: Understand the differences in cultures

Professor Geert Hofstede conducted one of the most comprehensive studies of how values in the

workplace are influenced by culture.

This website provides you with insights on Hofstede's research into national and

organizational culture.

http://geert-hofstede.com/

Dimensions:

Power Distance (PDI), Individualism Vs Collectivism (IDV), Masculinity Vs Femininity (MAS), Uncertainty Avoidance (UAI),

Long-term Vs Short-term Orientation (LTO), Indulgence Vs Restraint (IVR)

Page 4: How to do business in asia

Tip No. 3: Appreciate their religious faiths

Religions define cultures and beliefs

Religions also define business ethics (For eg. no alcoholic gifts for Muslims)

Understanding religion enhances understanding of people

It will bring you closer to them quickly and you will be able to appreciate their traditions and behaviors faster

Page 5: How to do business in asia

Tip No. 4: Believe that you are not dealing with your country men

Do not expect them to behave like you

Do not be offended if you find them impolite as compared to your standards

Observe their behavior closely and adjust your style

Keep in mind that you want to do business with them in their countries

Page 6: How to do business in asia

Tip No. 5: Make friends and firm relationships

Laugh out loud, crack jokes, and accept humor

Answer personal questions and ask personal questions, this enhances trust

If necessary, share personal contact information and talk about families

Personal commitments and inter-personal relationships are more important than official ones.

Page 7: How to do business in asia

Tip No. 6: Be prepared for uncertainties

Accept that uncertainties are part of life and learn to be adaptive

Please do not be upset at the changes, delays (smile and move on)

Rather expect uncertainties/changes and learn to be prepared for them

Always keep ready your plan B and plan C

Page 8: How to do business in asia

Tip No. 7: Develop flexible mindset

Flexibility makes you more acceptable

Rules are there as the basis but business relations can not be governed 100 % by rules

Look at bigger picture; be ready to attend a meeting without having a complete agenda. Sky will not fall.

Make suggestions and accept suggestions

Page 9: How to do business in asia

Tip No. 8: No need to be formal all the time

Too much formalities confuse people

Too much formalities create distance

Being oneself enhances mutual trust, understanding and relations

Depending upon the circumstances, being informal and conversational can get closer to anyone in the world

Page 10: How to do business in asia

Tip No. 9: Do not be shy

Shyness reduces your potential by half

Take initiative to speak first, give your ideas freely

Feel free to speak to others, ask questions, and accept questions

Nobody is judging you rather everyone wants to know your real self.

Page 11: How to do business in asia

Tip No. 10: Learn universal language

English is not an Asian language but all Asians are connected through English. English is universal.

Hardly few in Asia speak real native English

Remember that everyone makes mistakes. No one can be perfect in English speaking.

It is OK to speak broken English rather than not speaking in English at all

Page 12: How to do business in asia

Tip No. 11: Communicate clearly

Speak direct and straight, not round about

Express your opinion freely, don’t withhold

Learn to negotiate, when you communicate, and interrupt if necessary

Learn to use body language to make your point

Page 13: How to do business in asia

Tip No. 12: Understand body language

Closely observe body language of other people

Body language fills the communication gap

Learn to take note of their body posture, gestures, facial expressions, and eye movements

Listen and observe. You will understand.

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Tip No. 13: It is a high context society in Asia

If you are dealing with high context society in other countries, expect a big communication gap

Try to understand their context

Feel free to ask questions, seek clarifications, and take notes in business meetings

Spend more off-business time with them to understand their context, when you are in their countries. Mingle with them. Eat food out in their restaurants. Talk to people, wherever you go.

Note: Most of Asian countries are high context

Page 15: How to do business in asia

Tip No. 14: Know monochronic or polychronic culture

Monochronic culture: Clocks, agendas, calendars, and deadlines determine what and when things are done, and time is a limited commodity that must be carefully managed.

Polychronic cultures: Time stands in the background; and relationships and immediate needs usually determine what and when things are done.

Source: Global Etiquette Guide to Mexico and Latin America

Note: Most of the Asian countries are polychronic

Page 16: How to do business in asia

Tip No. 15: Remember this thumb rule

Everyone in Asia respects all cultures, discipline, and politeness

BUT

Every Asian expects you to be Asian when you do business in Asia.

Try it, I am sure you will see the difference

Good Luck to all of you.

Page 17: How to do business in asia

Thank you!

K D BhardwajSenior Program Officer

Industry Department, [email protected]