WORKING EFFECTIVELY WITHCHINAFEBRUARY 2015

Sean DubberkeRW3 LLC

Olivier MeierMercer

R. Barry SpauldingMaster Intercultural Trainer

Introduction and Goals

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Mercer and RW3 LLC

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• As the leader in global mobility dataand consulting services, Mercerunderstands how important assignees’cultural adjustment is to successfulinternational assignments.

• Yet only 48% of companies providecultural training to assignees and theirfamilies, usually in a pre-assignmentsession.

• Continuous access to cultural trainingfor assignees, their families, and allemployees working with a foreignculture is crucial.

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• Mercer partnered with RW3 LLCto help our clients provide cost-efficient, effective culturaltraining and enhance theirmobility programs.

• RW3 brings 30+ yearsexperience with cultural training,global talent development, andglobal mobility.

• RW3 serves over 100 globalorganizations with online andinstructor-led cultural learning.

• Mercer and RW3 co-createdCulturalTrainingPassport™ andthe Culture Passport On the Gomobile app.

Mercer and RW3 LLC

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R. Barry Spaulding• 35+ years of global business experience in both

private and public sectors with focus on China.

• Managed US banking office in Beijing .

• Head of Chase Manhattan Bank’s NY China Group.

• Head of NY State’s International Division and globaloffices; initiated sister state relationship with JiangsuProvince.

• BA in Asian Studies, University of California, with ayear of study at Chinese University of Hong Kong.

• Master of International Affairs in InternationalFinance/Economics, Columbia University.

• Training, consulting, coaching experience with bothWestern and Chinese organizations, teams, andindividuals.

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Goals for the Webcast

Increase yourawareness ofkey Chinese

culturalvalues andtheir impacton businessbehaviors

Learn toidentify

cultural gaps

Explore waysto bridge

cultural gapsand developstrategies forsuccessful

InternationalAssignments

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Agenda

Review Business Challenges

Examine 3 Key Aspects in Working with China

Gap Analysis and Implications for Business

Strategies for Success

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2

3

4

Section 1

Business Challenges

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Frequent Challenges

• Meetings are a challenge – time, interpreters, flow…

• Everything has a protocol – seating, gifts, business cards…

• Hierarchy is very important to the Chinese which is at directodds with an egalitarian, informal, open culture (like the US,for example).

• The Chinese crave clear direction, impacting management,change, tasking.

• The communication process – Chinese is a high contextlanguage and we are typically low context people.

• The negotiation never ends.

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One is likely to seriouslymisinterpret business situations in

other cultures if one evaluates themsolely in terms of one’s own values,

expectations, and behaviors.

“We see the world, not as it is,but as we are – or, as we are

conditioned to see it.”

Stephen R. Covey, The 7 Habits of HighlyEffective People

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Behavior

ValuesAssumptions

Behavior

ValuesAssumptions

...?????...

CRASH !!12

Section 2

Three Key Aspects of Working with China

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Confucianism as social, moral,political philosophy underpinningChinese society.

Confucian society based onrelationships:

• Roles• Responsibilities• Hierarchy• “Li” – Ritual/Protocol• Harmony• Meritocracy

Five Classic ConfucianRelationships

Ruler to subjectFather to son

Elder brother to younger brotherHusband to wifeFriend to friend

Hierarchy

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ASSOCIATES / GUANXI NETWORK

FAMILY

Outsiders

Implications for building trust, credibility, personal connections,being an outsider, doing “favors,” “professional” vs. “personal”

Relationships – “Guanxi”

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“Face”

Behavioral implications:

• Concern for “public persona” (yoursand others’).

• Need to understand who is speaking– “public” or “private” persona.

• Saying the “appropriate” thing.• Compliments, formality, politeness.• Saying “no” indirectly.• Indirect communication; clarification

through context, non-verbals.• Criticism in private.

Section 3

Gap Analysis and Implications

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Gap Analysis

1. Identify a dimension wherea gap exists.

2. Analyze to:• Understand the

implications of this gap foryour business interactionsand effectiveness withother cultures.

• Learn specific things canyou do to bridge the gapsand increase businesseffectiveness.

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Dimensions of Culture

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Hierarchy

Hierarchical Egalitarian

• Leadership style is moreauthoritative and hands-on

• Emphasis on respect forauthority

• Expression of opinionbased on position

• Expectation of deference andrespect for superiors

• Leadership style is moreparticipative and coach-like

• Emphasis on equality

• Expression of opinionbased on ability to contribute

• No different or special privilegesbased on position

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Hierarchy: Implications

• Chinese need to know role, status, credibility;Exemplified by business card exchange.

• Subordinates will give less feedback;Implications for brainstorming, teleconferences.

• Communicating across matrix organizationdifficult.

• Chinese often need more direction, information;Expectation of more concrete tasking, setagenda.

• Who communicates with whom? Where/howyou interact with the Chinese hierarchy?

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Relationships

Interpersonal Transactional

• Relationships are the secretto success

• Business relationships evolve• Relationships transcend time

and distance• What matters is knowing each

other as a person• Face-to-face meetings

preferred

• Emphasis on tasks and goalsover relationships

• Quick engagement in business• Relationships can be

very transient• What matters is individual skills,

abilities, and sharedachievements

• Fewer face-to-face interactions

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Relationships: Implications

• Slower business development.

• Need to build trust viaintroductions, frequentbusiness/social interaction.

• Maintaining personal network,connections, “guanxi” is veryimportant.

• Expect personal/professional toblur.

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Communication

Indirect Direct

• Messages are more subtle/tactful

• More non-verbal cues

• General “yes” and indirect “no”

• Shared background and context

• Focus on harmony andavoiding embarrassment; Oftenless questioning, debate

• “Public” persona

• Messages are moredirect and straightforward

• Fewer non-verbal cues

• Yes/No questioning

• Information based communication

• Questions and debate are prized,even if they make peopleuncomfortable

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Communication Style

Chinese communication style differs from other models,particularly “Western” ones.

• Implicit communication: How something is said, what isnot said as important as what is said; Sharedbackground/context is important.

• Listening-centered: Listening preserves harmony, role andhierarchy effect; Listening focus implies responsibilityto ”interpret.”

• Politeness: Harmony, modesty/humility, deflection ofcompliments, “offer-decline” ritual.

• Insider/outsider differences; Situational influence:“Public” vs. “private” persona.

• Concern for “face”: Protection of self and others.

Section 4

Strategies for Success

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Planning Your ApproachHierarchy Who will you approach and how? What are the expectations

for a leader/manager? Are you seen as credible?

CommunicationHow will you phrase questions or proposals? How muchbackground is necessary? What do you need to consider tointerpret correctly?

Group How will you approach decision-making? How is individualempowerment seen? “Public” vs. “private” persona?

RelationshipsHow much trust will you establish up front? How muchpersonal information is necessary? How often do you needto connect?

Formality What forms of interactions are preferred? How is respectshown?

Time How will you reach agreement on sense of urgency?

Control How will you approach change and risk? What aids insecuring buy-in?

Motivation How will you approach work/life balance?

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Strategies for Success: Management

Strongly impacted by hierarchy, relationships andmotivational differences.

• Directive management model with more detailedjob descriptions and tasking.

• Win respect/loyalty by mentoring employees.

• Check in frequently.

• Pay attention to expectations; Your credibilityand status.

• Title-consciousness; Recognition throughpromotion/title.

• Meetings often more leader-directed.

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Strategies for Success: Marketing

Influenced by relationship, group, communication,hierarchy differences.

• Mix of personal and business; Dining, karaoke,socialization.

• Expect personal questions about your age,family, hometown.

• Anticipate initial low trust; Ensure credibility;Introductions.

• Frequent “face-to-face” contact, “checking-in”important.

• “Contract” ~ but expect ongoing negotiation.

• Price will be important; anticipate “haggling”tradition.

• Strive for win-win outcomes so everyone retains“face.”

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Strategies for Success: Communication

Strongly influenced by indirectness, group, hierarchy,and formality.

• Anticipate indirectness/ambiguity; Practice “activelistening.”

• “Yes/No” questioning difficult; Use open-ended, infoquestions.

• Use writing, graphics more to supplement verbal points.• Recognize “public” vs. “private” persona.• “Brainstorming” often less useful; Use 1-on-1.• Anticipate greater formality; Be ready to follow a script;

“Offer/decline ritual.”• Do not openly criticize; Avoid confrontational language.• Ensure you have authority, credibility.• Context, background, models, precedent assist with

buy-in.

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• Top learning about China.• Top learning about yourself.• Top things you will share

with assignees and others.• Top things you’re going to do

differently.

How will you apply this learning?

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Further Resources: CulturalTrainingPassport

1. Go to www.culturaltrainingpassport.com2. Complete registration to gain free access (HR).3. Ask Mercer about the new unlimited access Enterprise option.

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Further Resources: Culture Passport On the Go

1. Mobile application provides

access to cultural and

logistical information for

100+ countries.

2. Universal access for all of

your company’s employees.

3. Visit imercer.com/cponthego

for details.

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Questions

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Barry SpauldingMaster Intercultural Trainer

globalstrt@aol.com

Olivier MeierMercer

olivier.meier@mercer.com

Sean DubberkeRW3 LLC

sean.dubberke@rw-3.com

千里之行，始于足下

“A journey of 1,000 li begins with one step”

THANK YOU!