Mar 31

Challenges of Doing Business in Japan

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector No Comments »

With one of the largest economies in the world, Japan has seen an explosion in the increase of foreign business investment since WWII. Doing business in Japan offers innumerable benefits for international organisations, however there are a number of key cultural challenges that create friction and misunderstanding as well as sizable direct and indirect costs to the organisation if overlooked.

Cross cultural awareness training programmes such as Doing Business in Japan increase organisations’ awareness of the cultural challenges and ensure that those involved are fully equipped with strategies for benefiting from these differences. The following are six of the key cultural concepts international organisations can sometimes find challenging when setting up or doing business in Japan.

 

Japan Chris Pritchard i Challenges of Doing Business in Japan

© istockphoto.com/Chris Pritchard

Rules and Etiquette – Japan’s low tolerance of uncertainty has created a society which adheres closely to rules and regulations. Evidence of this is visible in low crime rates, trains that you could set your watch by and high levels of conformity in behaviour. Etiquette penetrates every aspect of society and is evident even in ordinary circumstances. Aspects of etiquette include an extensive vocabulary and grammar for polite conversation, codified practices for gift giving and receiving and principles for bowing and exchanging name cards.

Hierarchy – A strong hierarchical system still exists in Japan with respect, responsibility and authority being rewarded based on age, status and experience. When communicating with Japanese, it is wise to pay attention to the protection of “kao” or “face.” Face is closely linked with personal pride and forms the basis of an individual’s social status and reputation. Damaging face through overt confrontation or criticism shakes the foundation of Japanese hierarchy and can be disastrous for business relationships in Japan.

Gender roles – Although women are fast gaining more visibility in the work place, the role of “salaryman” (office worker) is still male dominated. Women’s social participation is reflected and influenced by the Japanese language which diverges into a more polite and formal style of speech when utilised by women.

Harmony – As a country that values sentiments of collectivism over those of individualism, Japanese tend to place a significant emphasis on loyalty towards the group. It is still common for companies to provide life-long employment to individuals who, in return, devote long hours and often sacrifice personal gain for communal good. When doing business in Japan it is important to recognise that praising or prioritising any one individual over others is likely to be embarrassing and will not further business goals.

Concepts of Time – Japan is a monochronic culture with a long-term orientation towards time. In other words, people tend to think linearly and prioritise depending on importance. Attitudes towards punctuality are strict. When doing business in Japan, being early or on time for all appointments, regardless or their formality, is a show of respect and therefore any event of being late requires forewarning and an apology. Furthermore long term time orientation translates to values in Japan that include persistence and ordering relationships by status.

Communication Style – Understanding the communication style in Japan is one of the biggest challenges of doing business in Japan. Japanese have a preference for indirect, high context communication. In other words, Japanese often imply and infer rather than verbalise directly and they place a high importance on the impact of body language, paraverbal features, relationships, emotion and other non-verbal communication. Japanese will rarely say ‘no’. As a result, international organisations doing business in Japan are often left confused and struggle to achieve their business objectives.

Recognising the cultural differences which exist when doing business in Japan is only the first step. International organisations must also understand the reasons behind them to develop strategies to effectively cope with these cultural challenges. A cross cultural awareness training programme like Doing Business in Japan programme will help the organisation turn challenges into benefits and maximise the immense opportunities that doing business in Japan presents. Furthermore, it will contribute towards the development of an interculturally competent workforce, a huge advantage in this fiercely competitive global world.

© Communicaid Group Ltd. 2010

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Mar 29

Benefits of Doing Business in Oman

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources 1 Comment »

IMG 3167002 425x283 Benefits of Doing Business in Oman

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Oman is a country in the Middle East bordering the Arabian Sea, Gulf of Oman, United Arab Emirates, Saudi Arabia and Yemen. Its strategic location on the Musandam Peninsula has helped the Omani people to prosper from the Indian Ocean trade for decades. Today the country is a vital world transit point for crude oil.

Oman has traditionally been an isolated and conservative nation, but its current Sultan has been making tremendous efforts to make the country more open and modern. The strong Omani heritage, rich tradition and culture attracts an increasing number of visitors and foreign investors wanting to take advantage of its key location and growing economy.

Understanding Oman’s unique culture and traditions is key to doing business effectively there. Attending Communicaid’s Doing Business in Oman programme will help individuals and organisations to maximise the benefits of doing business in Oman.

Some of the key benefits of doing business in Oman are highlighted below.

Strategic Geographic Location
Oman has over 1,700 km of coastline which has allowed the country to enjoy the status of a marine country. Its distinct strategic geographic location controls one of the most important marine trade routes in the world, the route between the Arabian Gulf and the Indian Ocean. The Sultanate is considered the gateway to the Arabian Gulf and makes Oman the meeting place of the Asian and African continents, paving the way for a plethora of financial business opportunities.

Natural Resources
The discovery of oil drastically improved Oman’s economy. Sustained high oil prices in recent years have helped build Oman’s budget, trade surpluses and foreign reserves. However, in the last few years attempts have been made to diversify the economy to reduce Oman’s dependence on the oil industry, and investment in the private sector and foreign business are being encouraged.

Fast Developing Economy
Oman’s economy is future-oriented and continues to grow rapidly. Since the 1970s when a new Sultan came to power, Oman has made massive economic and social improvements. The last few years have brought phenomenal achievements to Oman such as multi-lane highways, modern hospitals, schools and universities. Oman is also shifting its economy significantly towards tourism which will bring tremendous profit due to the attractive location of the country and its rich traditions.

Government Support to Develop New Business
The development of Oman is encouraged by very favourable government policies that attract investors from all over the world. Oman is actively pursuing a development plan that focuses on diversification, industrialisation and privatisation. The Omani government offers incentives to encourage local and foreign businesses such as tax exemptions, interest free loans, free trade zones and preference in allocation of government land. The benefits of foreign investments are mutual. Foreign businesses have opportunities to develop and invest in new areas, and Oman profits from economic development.

Long-lasting Relationships with Business Counterparts
Omanis are known for their generosity, friendliness and tolerance. Their hospitality towards foreigners attracts short-term visitors and also encourages businesses to set up in the area with support from local communities. Expats benefit from the open Omani society which includes freedom of worship and modern facilities. Omani culture emphasises the building of strong bonds and relationships in both social and professional contexts. Therefore, foreigners are advised to spend time with their Omani business counterparts and make an effort to establish good rapport with them.

International organisations and investors doing business in Oman or planning to set up or develop business in Oman should consider participating in cross cultural awareness training such as Communicaid’s Doing Business in Oman training programme that will give them the skills required to work successfully in Oman.

© Communicaid Group Ltd. 2010

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Mar 26

Latest News from Communicaid

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector, News about Communicaid No Comments »
Globes Mike Bentley i Latest News from Communicaid

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The Totally Expat Show, taking place on 24 May 2010, will see Communicaid acting as a Gold Sponsor exhibitor, as well as delivering a case study in collaboration with one of its key clients. The exhibition is the largest in Europe aimed at global mobility professionals and expatriates. Read more here.

International consultancy firm Deloitte has been working in collaboration with Communicaid in a committment to build and improve relationships with customers across the globe. Click here to read more.

Communicaid contributes to the February 2010 issue of  Newsline, ECA International’s newsletter aimed at International HR, with an article on managing international teams. Read more.

The 2010 schedule for International Business English courses is now available on Communicaid’s website. Courses provide core skills for the international communication needs of legal, insurance, financial and HR professionals. Further details available here.

© Communicaid Group Ltd. 2010

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Mar 22

Challenges of Doing Business in India

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector 3 Comments »

India’s economy is one of the fastest growing in the world. It has seen an explosion in the increase of foreign business investment, outsourcing and Indian companies venturing overseas. Doing business in India offers immense benefits for international organisations, however there are a number of key cultural challenges that can create misunderstanding and conflict as well as huge direct and indirect costs to the organisation if overlooked.

Indian woman 4 i2 Challenges of Doing Business in India

© istockphoto.com/photosoup

Navigating the challenges of doing business in India can be difficult without a comprehensive understanding of Indian social and business culture. Going through cultural awareness training like Communicaid’s Doing Business in India programme will ensure you and your organisation have the right level of knowledge and skills to successfully deal with some of the following key challenges of doing business in India.

Attitudes towards Authority – Traditionally a caste society with roots in Hinduism, Indian culture places a high importance on authority and status. Communication between levels is relatively closed so valuable insight or suggestions from employees in lower positions will rarely be shared with their superiors. Without understanding the complexity of Indian attitudes to authority and how they impact business, organisations doing business in India will struggle to implement change as quickly as necessary, and fail to harness the experience and value of its employees.

Concepts of Time – India is a polychronic culture, in other words, people tend to change priorities depending on their importance and attitudes towards punctuality are relaxed. Most large global organisations require adherence to strict deadlines and fast decision-making, so they struggle to cope with the idea that when doing business in India, time cannot be controlled and is not absolute.  Cultural awareness training can help you better understand Indian concepts of time and develop strategies for dealing with them.

Adherence to Rules – India has a high tolerance to uncertainty and has created a society which runs on the basis of a set of assumptions. It generally accepts social etiquette and norms instead of rules and regulations. Even though rules do exist, the low level of adherence to them creates huge challenges for organisations setting up business in India who are required to follow a set of home-country regulations.

Building Relationships – The Indian business culture focuses a lot on relationship and trust building rather than working hard and quick towards specific business objectives.  A Doing Business in India cultural awareness course helps you to develop strategies to avoid the immense frustration, delayed projects, failure to reach tangible results and general clash as a result of different preferences for relationships and tasks and processes.

Levels of English – Most university graduates and Indians residing in major urban centres have a very high level of English. Understanding Indian English can be challenging, however, as a result of the different vocabulary and expressions as well as heavy accents. Many people are unaware of these differences and expect communication with Indians to be simple. Instead, many international organisations incorrectly interpret the Indian English they use to be a result of poor education and language skills. Being aware of Indian English can help you reduce misunderstandings and loss of time.

Communication Style – Indians have a preference for indirect, high context communication. In other words, Indians prefer to see the whole picture, place a high importance on the impact relationships, body language and emotion have on communication and will often avoid saying ‘no’. The differences in communication style can cause a large challenge to overcome for someone who is used to communicating in a more direct and low context way.

Understanding the cultural differences which exist when doing business in India is only the first step. International organisations must also understand the what, why and how behind them to develop strategies to effectively cope with these cultural challenges. A Doing Business in Indiacultural awareness training programme will help organisations maximise the immense opportunities and benefits of doing business in India while it will also help develop an interculturally competent workforce, giving the organisation a huge advantage in this fiercely competitive global world.

© Communicaid Group Ltd. 2010

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Mar 19

Benefits of Doing Business in the UAE

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources No Comments »

iStock monkeybusinessimages 000010566659Medium4 300x199 Benefits of Doing Business in the UAE

© istockphoto.com/monkeybusinessimages

The United Arab Emirates is located on the edge of the Arabian Peninsula and is made up of a number of diverse sheikdoms. The country itself is at the forefront of modernity and twenty-first century innovation. Since the discovery of oil in the 1930s, the UAE has become one of the wealthiest states in the region.

In recent years tourism and a diverse economy have made the UAE a regional hub and an attractive country for foreign investors. Doing business in the United Arab Emirates has never been more rewarding. Here are some of the key benefits of doing business in the UAE.

Access to a Diversified Economy

The UAE’s economy has seen a great deal of diversification in the past few years. Whilst the petroleum industry is still very important to the country’s economic success, the United Arab Emirates has seen sustained growth in tourism, science and technology. On top of this, the Emirati government has recently allotted $13.4 billion to the development and expansion of non-oil related industries, a sizeable proportion of which will be dedicated to the virtual technologies sector.

A Central Point for World Trade and Commerce

The UAE is located at the centre of some of the world’s most important trade and commerce routes. Historically this has always been true and remains very much so today, making it a world class trading hub. By establishing your business operations in the United Arab Emirates, you will have access to the markets of Asia, Africa, Southern and Eastern Europe and the Middle East. The country has the necessary facilities to accommodate international trade, with state-of-the-art air and maritime ports, making doing business in the UAE an attractive endeavour.

Low Taxes

The UAE’s government offers attractive tax incentives to businesses doing business in the country. There are currently no foreign exchange controls, trade barriers and no personal or corporate taxes which can help take a significant financial and administrative burden off of international businesses.

A Vast Array of Twenty-First Century Technological Solutions

Over the past decade, the United Arab Emirates has made a name for itself as a place of excellence for telecommunications and IT. With the most modern facilities and infrastructure, such as the Dubai Media City, the country is the perfect place to advance your operations.

Companies that have operations in the United Arab Emirates will gain enormously from Communicaid’s cross cultural training programme Doing business in the UAE. Knowledge of the local culture and national business culture is absolutely vital in order to operate successfully abroad. Equipping your employees with this information prior to their secondment will help international assignees work efficiently and successfully with their Emirati counterparts. Both can be achieved by cross cultural training programmes provided by Communicaid, tailored to the specific characteristics of UAE business culture.

© Communicaid Group Ltd. 2010

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Mar 18

The Onion Model of Culture

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector No Comments »

There are many ways to visualise the concept of culture, but one of the most popular models is based on an onion.  The Onion Model of Culture shows how culture has a number of layers.  There are a number of interpretations of this model but the simplest one consists of four key layers.

Onion Model 300x287 The Onion Model of Culture

The outer layers represent cultural artefacts or symbols such as flags, architecture or traditional clothing.  Heroes make up the next layer, such as Winston Churchill in the UK, and tend to represent many of the culture’s values and beliefs.

The next layer is composed of common rituals and traditions.  This could include how people greet each other, eat meals, get married or practise their religion.

In the centre of the onion are the underlying values and cultural assumptions which influence all of the other layers.  These beliefs, norms and attitudes are much harder to recognise without a deeper analysis and thorough understanding of each of these layers and how they interact.

Cross-cultural training can help anyone working across cultures see past the outer layers and understand the why, what and how behind each of them.  When doing business in Japan, for example, people will avoid making direct eye contact with anyone more senior than them.  Understanding that this is because of important Japanese values such as face and hierarchy is essential for anyone doing business with Japan.

Country-specific cross-cultural training programmes such as Communicaid’s Doing Business in Japan will increase understanding of the cultural values and how they influence the rituals, heroes and symbols in Japanese business culture. Understanding the cultural values and their impact will help you ensure that your international business ventures are a success.

© Communicaid Group Ltd. 2010

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Mar 18

Challenges of Doing Business in Spain

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector No Comments »
 

Businessmen Greeting Neustockimages i Challenges of Doing Business in Spain

© istockphoto.com/Neustockimages

 

Spain is a large country with a diverse landscape and climate. The division of the country into 19 Autonomous Regions which are further divided into 50 provinces forms a range of cultural varieties. The regions differ from one another and at the same time create a united nation. Spanish culture is deeply rooted in tradition and may be challenging for foreign investors doing business there who are not familiar with it.

Any organisation considering doing business in Spain could benefit from Communicaid’s cross cultural training programmes such as Doing Business in Spain to better deal with the challenges of doing business in Spain. Below are some of the key challenges of doing business in Spain which Communicaid’s cross cultural training programmes could help you understand.

Cultural Diversity
The location of Spain on the Iberian Peninsula exposed the country to numerous invasions throughout history. Spanish civilisation was affected by the successive arrival of people of various nationalities bringing their culture and languages to Spain. This resulted in the division of Spanish society into minority groups who retain their native cultural influences. The additional division of the country into 50 provinces keeps the Spanish people culturally separated and independent. Such cultural diversity within one country can be challenging for foreigners who do not understand how culture impacts business throughout the country.

Individualism
Spain’s cultural diversity has created a strong sense of individualism which is seen through strong bonds and a sense of identity within the various cultural groups. Although individual on many levels, family values and a sense of identity and belonging to a group are all integral parts of society in Spain. Contemporary Spanish culture values personal qualities such as appearance, image and personal relationships. In a business context, personal attributes and character are frequently valued as much as technical ability, experience or professional competence. When doing business in Spain, individualism is particularly predominant in management, where Spanish managers are less inclined to favour group decision making and team orientation.

Face
Spanish culture values the concept of face as a very important matter in personal pride and respect. Face is crucial for Spaniards who strive to avoid the risk of losing face. Therefore, any forms of public criticism or causing embarrassment may result in misunderstanding and unnecessary conflicts in Spain. Saving face is important especially in a business context when your Spanish counterparts have to focus on relationship-building to protect their business investments.

Relationship-building
Spaniards value interpersonal relationships on a business level. They tend to take time to get to know their counterparts and will sometimes go out for a drink or dinner to build the relationship. The trust and relationship building process may be time consuming but will benefit in gaining a long-term and reliable business partner. When doing business in Spain, foreigners need to make an effort to gain the trust of their Spanish counterparts and show them that they value their relationship as much as the business opportunities.

Uncertainty Avoidance
Spaniards are cautious not only with business relationships but also with their approach to new ideas. They prefer to feel truly familiar with new situations before taking any steps or making decisions. Patience is necessary when doing business in Spain as Spaniards try to avoid ambiguity and need as much detail as possible.

Having an understanding of Spanish social and business culture is very important when doing business in Spain. Any organisation doing business in Spain should consider attending Communicaid’s cross cultural training programme Doing Business in Spain to increase their knowledge of the cultural diversity and cultural values and attitudes which can result in misunderstandings and conflicts if not correctly interpreted or understood.

© Communicaid Group Ltd. 2010

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Mar 17

God is Brazilian! The International Rush for Brazilian Oil

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Brazil 2 bkindler i1 God is Brazilian! The International Rush for Brazilian Oil

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‘God is Brazilian!’ – Those were the patriotic words of Brazil’s president Lula da Silva, upon hearing of the recent discovery of new oil fields off the coast of Brazil which – if current estimates prove to be correct – could place Brazilian oil reserves level with those of Russia and Saudi Arabia.

The blocks are 170 miles off the coast, under both deep water and thick layers of salt, so drilling them promises to be technically very challenging. Yet the potential profit is so great that Brazil has become the focus of all major international oil companies searching for new reserves, including British-based BP.

While it has a strong presence in the Gulf of Mexico, BP was one of the few international companies with no assets in Brazil, at least until this week when it announced the beginning of a joint venture with US based Devon Energy. As part of the joint venture agreement BP has bought the American firm’s precious oil fields off the Brazilian coast, and has secured the future development of its oil sands in Canada.

The challenges posed by an international business venture of the size and importance BP is embarking on are many. Establishing new operations in foreign countries, or taking over the management of pre-existing ones require both technical know-how and a sound awareness of the cultural differences in business practices new and existing employees are likely to encounter.  Communicaid has worked alongside a number of international oil and gas companies providing tailored cross cultural training programmes to ensure employees have the right level of cultural knowledge and skills required to be successful when doing business in other cultures.

Cross cultural training programmes have included pre-assignment training for existing staff and their families prior to relocation. Programmes like Living and Working in Saudi Arabia provide employees and their families with the necessary input to live and work successfully in the target destination.

Communicaid has also delivered a number of tailored cross cultural training programmes for business and management to a number of large oil companies.  These programmes are designed ad-hoc with each organisation’s specific needs in mind and therefore vary in both nature and content.

One of the most common requirements international oil companies have identified is the need to train key decision makers to successfully Manage International Teams. The nature of the energy industry means that teams will most likely be composed of highly qualified and experienced individuals from a variety of cultural backgrounds. Creating a successful team spirit and working environment, bridging any possible cultural difference, therefore becomes key for the team’s success, and ultimately for that of the whole organisation.

Communicaid’s cross cultural training programmes are delivered by trainers with vast experience of the country of destination so they bring first hand experience and understanding of the potential problems that can occur both in the workplace and in ever-day situations in another culture. Training is highly interactive, allowing delegates to develop a concrete awareness of the cultural differences they will encounter and personalised ways of dealing with them.

While the race for Brazil’s black gold is most definitely on, unlike most races the first one to get there is not necessarily the winner. Many international joint ventures are known to have failed with the passing of time, often due to a lack of cross cultural awareness by all parties involved.

Communicaidhas long recognised the risks to global organisations of ignoring cross cultural differences in international operations and has developed a vast network of trainers and a rich database of materials to provide international companies the training they need to avoid lost money and time and give them the competitive edge.

© Communicaid Group Ltd. 2010

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Mar 16

Benefits of Doing Business in Singapore

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources 1 Comment »

Chinese dragon Videowok art i1 Benefits of Doing Business in Singapore

© istockphoto.com/ Videowok_art

Although geographically very small, Singapore is well known for having one of the highest standards of living in the world and being a top destination for doing business.

A relatively young state having gained independence in 1965, Singapore has quickly become famously safe, orderly, green and clean, whilst boasting an enviable public transport system and an exemplary educational system. Prudent economic management, low taxes and first-class infrastructure all make it attractive for investment. As Felix Zulauf of Sulauf Asset Management has said it is probably the best-run country in the world.

Nevertheless, an understanding of the population’s different cultural traditions and background is required to truly maximise your success doing business in Singapore. Communicaid’s cross cultural training programme Doing business in Singapore will help you harness the following benefits of doing business in Singapore.

A Thriving Economy
According to the Singapore Economic Development Board Singapore is ranked as the world’s easiest place to do business, the most open economy for international trade and investment, the best business environment in Asia Pacific and third best worldwide. These conditions combine to make Singapore the most competitive Asian country and an ideal place to do business.

Smooth Efficiency
Known for integrity, quality, productivity and enforcement of the rule of law, Singapore is well trusted internationally. According to the IMD World Competitiveness Report 2008, Singapore is one of the top three least corrupt countries in the world. To back this up is the added bonus of infrastructure that seems to work flawlessly. The trains run on time, the roads are spotless and healthcare services are world class.

Multicultural Population
In today’s fast globalising world, we are increasingly coming to capitalise on the strength in diversity. Globally connected, Singapore is a country with a unique blend of cultures, lifestyles and religions. When doing business in Singapore, it is important to remember that its open immigration policy has created a cosmopolitan environment in which one in three people have come from abroad. Hence, the diverse population that consists predominantly of Chinese, Malay and Indian does not assume any single identity yet the different ethnic groups unite comfortably as Singaporeans.

Great Location
Singapore has fully profited from its strategically advantageous geographical position to become one of the world’s top transportation hubs with the busiest port in the world. Often referred to as one of Asia’s economic ‘tigers’, Singapore has its roots as a natural trading port linking East and West. A financial and commercial centre, Singapore is often viewed as accessible by Chinese and Indian businesses and as an English speaking gateway to the Asian market for Europeans and Americans.

With a thriving multicultural free-market economy, it is clear that international organisations can greatly profit from the above benefits of doing business in Singapore. Considering that English is the main business language and Singapore is considered the easiest place in Asia to do business, it is understandable that some fall into the trap of believing that doing business in Singapore should be plain sailing.

However, international organisations regularly doing business in Singapore or employing Singaporean counterparts should have a series of cross cultural training programmes on Doing Business in Singapore to ensure they understand the subtleties of Singapore’s business and social culture on all levels.

© Communicaid Group Ltd. 2010

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Mar 16

Intercultural Training – Essential for Global Success

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources No Comments »

Today’s world is characterised by global organisations with operations and employees across the world in constant contact via traditional and modern communication methods. The coming together of different nationalities offers organisations access to an unrivalled talent pool. However, it also creates new obstacles that internationally focused companies and institutions have to deal with in order to be successful.

Business People walking urbancow i Intercultural Training Essential for Global Success

© istockphoto.com/urbancow

Intercultural training can help employers and employees navigate the challenges of international working rooted in cultural differences by helping them develop their intercultural competence which is essential for global success.

International organisations working across the globe should provide intercultural training options for its employees to ensure they:

  • Understand the implications of cultural difference on business
  • Understand how they are perceived by their international counterparts
  • Communicate effectively across cultures
  • Build successful cross cultural relationships
  • Help the organisation have a competitive edge in the international market

A high level of competence in the areas above, developed through intercultural training, will result in more successful financial cross cultural business endeavours, an improved corporate image and long-term relationships with international counterparts.

Understand the impact of cultural difference on business

Intercultural training programmes like Working Effectively across Cultures provides employees with a foundation for understanding the impact of culture on business. Through the analysis of several key dimensions of culture, employees are able to understand how their own cultural values compare to those of their international counterparts. Being aware of different attitudes to things such as time, hierarchy and risk raises awareness of potential differences and helps to develop strategies for successfully working across cultures.

Perception and Image

One of the most important things intercultural training develops is self-awareness. By understanding both their own culture and that of their international counterparts, employees are able to better identify differences which they will need to adapt to. Through an increased awareness of how they might be perceived in other cultures, both individually as representatives of the company, they will avoid any potential miscommunication and improve global business.

Effective Intercultural Communication

Another important area that intercultural training helps develop is intercultural communication. Different verbal and non-verbal communication styles can cause misunderstandings and frustrations that can potentially affect international business relationships and cause a decrease in productivity and efficiency due to the lack of knowledge or appreciation of cultural differences.

Problems in communication may arise from the obvious linguistic differences, but also from the often less apparent differences in cultural values which are often unconsciously embedded in people’s behaviour. The awareness gained from intercultural training about employees’ own cultural values and the impact they have on how they behave and are perceived is essential for anyone working in international organisations.

Build successful cross-cultural relationships

When working across cultures, it’s extremely important to consider the importance employees place on relationships. In some cultures, doing business means getting straight down to the tasks at hand while in others doing business is all about developing a solid relationship first. Stories abound about companies who were not able to build effective relationships with their international counterparts resulting in lost deals. Knowing how much time needs to be spent developing the relationship before starting negotiations or planning a project will ensure success. Intercultural training programmes can provide employees with the knowledge and skills necessary to build effective global relationships.

Increase competitive edge

Communicating and working across cultures often presents huge risks for international businesses. Communicaid’s intercultural training can help prevent wasted time, lost revenue and damaging misunderstandings which occur as a result of a lack of knowledge and understanding of the target culture. Understanding how people think and why they behave the way they do will help employees work more effectively, which in turn, will give the organisation a competitive edge over other organisations who lack this intercultural competence.

 
In an article about measuring the benefits of intercultural training John Schieman wrote, “Quantifying the business improvement from cross-cultural interventions is challenging, however it is clear that cross-cultural competence has the potential to make a significant contribution to top and bottom line results as well as individual performance.”

Intercultural training ensures international organisations maximise positive outcomes of intercultural interactions and reduce potential cultural faux-pas which could result in huge direct and indirect costs as well as lasting damage to the company’s performance and reputation abroad.

© Communicaid Group Ltd. 2010

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