Six strategies to effectively deal with different business cultures

Navigating the complex web of global business requires a nuanced understanding of diverse cultural landscapes in our increasingly globalized world. Prolific author and speechwriter James Humes once coined a phrase: “The art of communication is the language of leadership.” Indeed, the ability to work effectively across different business cultures can be the deciding factor in the success of international ventures as business culture affects many things – from the tones of negotiations, style of business socialization to coffee selections!

1. Cultivate Cultural Intelligence (CQ)

Many textbooks suggest the importance of cultural intelligence, or CQ – it is the capability to relate to and work effectively across cultures. Unfortunately, over the past few decades the media contributed to the rise of many clichés about other cultures. Therefore, we should go beyond basic cultural awareness, by developing a deeper understanding and adaptability to different cultural contexts.

Cultivating CQ includes:

• Educate Yourself: Take time to learn about the cultural norms, values, and business practices of the countries you are dealing with. Don’t limit yourself to a short search on the Internet and spend few hours with books, articles, and reliable online resources to gain cultural insights.
• Engage with Diverse Groups: Interact with people from different cultural backgrounds through international conferences, multicultural teams, and especially social events.
• Reflect and Adapt: After engaging with different cultures, reflect on your experiences. Identify what worked well and what didn’t, and adapt your approach accordingly.

2. Embrace Effective Communication

Experts recognize that in modern world effective communication is the cornerstone of successful cross-cultural interactions. Understanding the nuances of language, non-verbal cues, and communication styles is crucial. We need to remember - some cultures prefer direct communication, while others rely on context and non-verbal cues - so you need to tailor your communication style to reflect the cultural norms of your counterparts.

•  Learn languages: Learning a few basic phrases in the local language shows respect and willingness to connect on a deeper level.
• Be Aware of Non-Verbal Cues: Non-verbal communication such as gestures, facial expressions, and body language can vary widely between cultures. A simple example, while maintaining eye contact is considered a sign of confidence in Western cultures, it may be seen as disrespectful in some Asian cultures.

3. Build Trust and Relationships

Old Central Asian saying states: we need to drink a cup of tea three times: first - to know each other, second - to become friends, and third – to do business together! Building trust is essential in any business relationship, but the approach to establishing trust can differ significantly across cultures. I suggest my students to learn about host culture – is it relationship-oriented cultures or task-oriented culture? In some places trust is built through personal relationships and long-term interactions, while in others, it is based on professional competence and reliability. As a next step I suggest to act accordingly:

• Invest Time in Relationships: In relationship-oriented cultures, spending the time to build personal connections – such as engaging in social activities or cultural or sport activities (golf again?) - will pay off in the long run.
• Be Consistent and Reliable: Demonstrating consistency and reliability in your professional dealings helps build trust in task-oriented cultures.
• Show Respect for Hierarchies: In hierarchy-oriented cultures, acknowledging and respecting formal titles and positions can help in building trust.

4. Understand and Respect Different Business Etiquettes

I always remember and bring an example of my student who invested so much time and efforts in arranging a meeting with a very important businessman. Well, his first meeting was a last. He made a very small mistake of coming to a reception in … jeans. For the host businessman it was an indication that the young person was not serious. That’s it! Indeed, business etiquette varies widely across cultures and can influence how you are perceived by your international counterparts. Among other things it is important to consider three things:

• Dress Code: Adhering to local dress codes demonstrates respect and understanding of cultural and social norms.
• Punctuality: In some cultures, punctuality is a sign of respect and professionalism, while in others, a more relaxed approach to time is acceptable.
• Gift-Giving: The practice of giving gifts can vary; in some cultures, it is an important part of business etiquette, while in others, it may be seen as inappropriate.

5. Adapt Your Leadership Style

Effective leadership in a multicultural environment requires a high degree of flexibility and adaptability. One must recognize that leadership styles that may be effective in one culture may not necessarily yield the same results in another. For example, in certain cultures, people may expect leaders to demonstrate assertive and authoritative decision-making styles, while in others, they may value a more inclusive approach, where the leader acts as a facilitator, encouraging collaborative brainstorming and decision-making. Thus, it is important to understand and respect cultural differences in leadership approaches.

• Be Inclusive: Encourage input and participation from all team members, involving them into the preparation of your overseas visits.
• Adapt Decision-Making Processes: In some cultures, decisions are made collectively, while in others, they are made by individuals in authority. Understanding and adapting to these processes can enhance your effectiveness while being engaged in international negotiations.
• Speak out: Recognize and accommodate different working styles and preferences. And if you are not very sure about something – just speak about cultural preferences and norms in your culture and ask your host about local norms, e.g. such as drinking tea or something stringer.

6. Leverage Technology for Cross-Cultural Collaboration

Utilizing modern technologies can significantly aid in uniting diverse cultural perspectives and promoting cooperation among different business cultures. Every business consultant says that it is crucial to identify digital cultural resources for getting relevant knowledge or to find some individuals who can act as important intermediaries between varied cultures, thereby assisting in facilitating more efficient communication and mutual comprehension. In the era of the ChatGPT, this is an increasingly popular tool for getting answers to many international business related questions.

• Use Collaborative Tools: Use platforms like WhatsApp, Microsoft Teams, Zoom, or WeChat to communicate in advance in order to understand your host’s culture
• Schedule Meetings Considerately: Be mindful of time zones and cultural differences when scheduling meetings by using shared calendars and scheduling tools.
• Encourage Virtual Social Interactions: Create opportunities for team members to interact socially online. Well, in the post-Covid-19 environment many organizations and companies embraced virtual socialization – well, I could never imagine in the past that I will be a part of virtual coffee breaks, team-building activities, and informal chat groups! But these activities can help build camaraderie and cross-cultural understanding, well, technologically.