Archive for March 2010

The Lion’s Tale: Overcoming Challenges to Cultural Competency While Doing Business in Emerging Markets Part 2.

Building Trust – Cross Cultural Communication

How  can we navigate this minefield of cultural relationships? Through open communication.  First, we must establish that all of these cultural and geographic distances also create challenges to communication as well. As we learn about communication, we learn that there is a traditional sender, message, receiver, feedback process in play. That seems to work reasonably well in American business interactions because there is a common understanding of that process. 

Realistically, because of some of the nuances that we previously addressed, communication may be distorted based on perceptions, experience, understanding imagery, sensitivity to proprietary information etc.  Dealing with emerging markets communication contains emotional content, ideas about expectations, issues of trust as well as other elements that may arise. Because of these implications, we need a new model for communication that takes into consideration a deeper level of understanding in order to overcome some of the distortions that arise based on perceptions.

In the adapted model we posit that the traditional communication components exist; however, we acknowledge a third layer of information that is affective in nature. We describe the receiver as one who receives communication in a multidimensional format. The following diagram illustrates this multidimensional communication model.

Each message is sent with a host of other subliminal messages attached.  For example:

“I like the product, but I’m not happy with the packaging. Let’s change the packaging to make it more marketable.”

The message sent but not received is that the product can sell but the packaging is not appropriate for the new market. 

The message received but not sent is that this person considers our products to be inferior. They will probably want to change the packaging and make it their own and we will lose all rights to the branding of this product. There is no way we will allow that to happen.

So, despite the message being sent, the message received has been distorted by a series of factors that have some historical and cultural significance even though they may appear irrelevant to the current transaction. The receiver feels distrust based on an emotional memory of past exploitation. Hence, the affective component to the communication process. Instead of a linear sender receiver message being sent the message may be distorted by a host of factors.

There may be a clear sender, however there is duality in the reception.  A more realistic depiction of communication includes a cognitive receiver as well as an affective receiver. The message my be filtered by; gender, age, interpretation, asymmetrical information, jargon, lifestyles, economy, education, fear….                                                                                           

The cognitive reception processes the information through the pre-frontal cortex, the seat of our reasoning. The affective reception is processed by the limbic system which processes emotional information and assesses threats. When limbic engagement takes place it often supersedes the pre-frontal cortex processing and the receiver may perceive the new or “foreign” concept or communication as a threat until further cognitive processing can occur.[1]

Beneath the communication system are a variety of affective elements that may influence the quality of the communication and affect the ultimate outcome.  The dilemma is that we are often unaware of these affective elements and may be blindsided by subrogated issues. To further complicate matters, we are unable to know what these may or may not be unless we have invested time and committed to an understanding of the people and culture first hand through immersion. Most of us do not have nor take this opportunity. We want to build trust but why should we be trusted if we cannot or will not invest time in understanding the people, the cultures and practices that drive these markets?

We must build alliances. Not the traditional exploitive alliances that have been our past methods of doing business but the type of interpersonal alliances that are genuine and that allow us to have a greater understanding and appreciation for the world economy we seek to develop. Social networking has aided this and we are in a unique position historically. We can now develop relationships abroad through use of technology that allows us each a glimpse into each other’s worlds. 

Developing relationships with stakeholders is critical to working within emerging markets because the trust issue will constantly rear its ugly head. If you don’t believe this, look within the US cultural demography. The United States, with its advanced technological developments, capital markets and broad cultural and demographic scope still has much to learn about building bridges between cultural and ethnic groups based on mutual trust.  A reliance on “political correctness” has replaced a genuine investment in understanding and has, in many cases, short circuited our efforts to build authentic relationships across cultures.

Forging Stronger Cross Cultural Business Relationships

Acknowledge differences and become curious about how and why groups approach business the way they do. Have and show a genuine curiosity about how work gets done. Listen long enough to ask more questions and engage the speaker and understand the benefits and challenges they face while engaging in their business practices.

Do your homework. What was the past historical and economic relationship like? Are there lingering effects that may influence your business relationship today? Are you bringing any preconceived notions to the business relationship? Be clear about the benefits afforded each party in the business engagement from your perspective and make sure you understand what their objectives are.  Be authentic. If the business relationship is not right, respectfully move on.

There will always be asymmetrical information, but intentional transparency is vital to building trust.

Be aware of language and avoid language that may be emotionally charged. I do not advocate walking on eggshells; however, I do believe in using language that is neutral when understanding is the goal.  Seek clarification wherever possible when misunderstanding takes place.

Finally, remember that doing business across cultures can be exciting, challenging and rewarding. Mutual learning and appreciation for the value each entity brings to the relationship should be the bonus for cross cultural enterprise. Ultimately, business engagements should be a win – win proposition and overcoming cultural challenges is a significant component of business success in a global economy.

Listen to the lion’s tale.




[1] Carlos Diz, Instituto de Lideranca Executiva, Brazil

The Lion’s Tale: Overcoming Challenges to Cultural Competency While Doing Business in Emerging Markets

A colleague of mine told of a conference where the keynote speaker opened with a story of a man in a physical struggle against a lion. The story was a metaphor for the struggles humans must encounter with opposition and the challenges we all must overcome. At the end of the story, the man eventually bested the lion as a testimony to the triumph of the human spirit.

As the story closed, one of the participants stood and asked the speaker why every story about a man and a lion ended with the man overcoming the lion. The facilitator responded, “Man will always win until the lion can write his own story.”

As much research as has been done on capturing business opportunities in emerging markets, surprisingly little has been written about the cultural nuances one encounters , how they may challenge the best business relationships and how  businesses may overcome them. Let’s get this straight. I’m not talking about cultural etiquette and your ability to conform to cultural norms. Anyone can learn to go through the motions and display the appropriate behaviors. We’re talking about the real challenges. The unspoken ones.  I’ve found that these challenges fall into a few categories that are consistent across many cultures.

Relational History – Impact on Indigenous Attitudes and Perceptions of Western Presence

When we study the history of other cultures, we must be aware that our perception of history may be biased by our perspectives. Facts don’t change; however, depending on historical outcomes, reactions and attitudes about those outcomes influence our ability to foster sound business relationships.

Media – Imagery and the Effect on Indigenous Public Perception

The perception of wealth and poverty on a spectrum of conditions in the west is controlled by the media which in turn controls disbursement of imagery about these conditions to the rest of the world.  These images often do little to build trust in our economic platform for those emerging countries exploring options to do business in this country.

Experience – Anecdotal References and Relationships with Cultures

Experiencing emerging markets as a tourist can give a distorted view of the true nature of the political, environmental, economic and cultural dynamics that influence global business relationships.

Cross - Cultural Communication Models

Investment in communication models that foster trust are often limited and misunderstandings may reinforce preconceived attitudes and stereotypes.

Building stronger relationships requires multi-dimensional communication models.  We explore one such model in Part 2 of this article. 

|