As an intercultural communication and international etiquette expert, I’ve closely studied the cultures in 10 Asian countries. And today, whether their focus is on belief systems or business attire, customs or communication styles, for executives to succeed in Asia, they must gain cultural awareness, country by country.
Here are 8 tips that can help make CEOs culturally aware.
1. Know how people prefer to act—individually or as a group. The terms individualism and collectivism refer to the tendency for cultures to be oriented toward the self or the group. In individualist cultures, such as Canada, Great Britain, and the United States, people consider themselves individually responsible when making decisions and deals. Conversely, people from collectivist cultures, common to Asia, prefer group representation in meetings and negotiations. In fact, in many Asian countries, including China and Singapore, making a decision without group input is avoided.
Fast fact: In Myanmar, people in senior-level positions are not as consensus seeking as leaders in other Southeast Asian cultures.
2. Know how power and authority are viewed. Globally, some cultures are ascriptive. This means that characteristics such as class, age, gender, and higher education are deemed more important than they are in achievement-oriented cultures. Consequently, power can be, and often is, held over people. In Asia, however, many countries consider power to be participative. Even higher-ups, in their positions of authority, can only guide, not direct, people in gaining consensus on decisions.
Fast fact: In Japan, companies are hierarchical, yet decision-making, even within large corporations, is a bottom-up, consensus-building process conducted in steps.
3. Know how people compare rules and relationships. A Chinese philosopher was asked why the East and West had developed such different habits of thought. “Because you had Aristotle and we had Confucius,” he replied. In the U.S., written rules are regarded as sacrosanct. Moreover, for most U.S. businesspeople, a contract is the relationship. Not so in most Asian cultures, where people see the world holistically, or comprised of completely interdependent relationships.
Fast fact: In China, where business agreements may be regarded as merely guidelines, the Chinese tend to be surprised by a Westerner’s refusal to renegotiate a price or contract.
4. Know how people regard time. In monochronic cultures, common in the West, time is regarded as linear, or sequential—meaning, people do one thing at a time. In polychronic cultures, such as those often found in Asia, it’s customary to do many things at once, or what’s now known as multitasking. Accordingly, interruptions are routine, agendas are dispensable, and schedules are always subject to change.
Fast fact: In Taiwan, people work an average of 2,200 hours a year—a full 20% more than employees in Japan and the United States. To accommodate, at the noon hour, some Taiwanese companies offer workers “nap time,” including dimmed lights and soothing music.
5. Know how people communicate—directly or indirectly. When it comes to communication with people in Asia, CEOs must understand the difference between low context and high context. The U.S., for example, is a low-context culture. People are direct communicators, and put emphasis on their words. In business meetings, participants are expected to get to the point quickly. In contrast, Asian cultures are high context. Communication is indirect, and words can only be understood within the context of body language and facial expressions.
Fast fact: In Singapore, when local business people preface a statement with, “In my humble opinion,” they are actually giving a firm directive.
6. Know how formal or informal people tend to be. Michele Gelfand, a psychology professor at the University of Maryland, distinguishes between tight and loose cultures. Tight cultures have deep-seated social norms, with little tolerance for behaviors that don’t conform to those norms. Loose cultures, on the other hand, are at ease with informalities.
Fast fact: In South Korea, where hierarchy is highly valued, it is important to match the formality, rank, and status of a Korean counterpart in business negotiations.
7. Know how people’s social and business lives are aligned. Just as people in the East and West regard time differently, they also choose to spend that time in their workplaces differently. A study conducted by researchers at the University of Delaware considered the number of hours employees spent on work-related tasks as compared to social activities, such as chatting casually, celebrating coworkers’ birthdays, or checking out a team member’s vacation photos. In the U.S., the split was 80/20. But in Asian countries, including India and Malaysia, it was 50/50. This emphasizes the important role of relationships in collectivist cultures.
Fast fact: In Malaysia, business guests are expected to recognize and respect the country’s diverse cultures, and to accommodate each one when celebrating, dining, or socializing.
8. Know how the concept of women in business is handled. There are no hard-and-fast rules on how women succeed in the world of work. Nevertheless, the Third Billion Index by Strategy& is a helpful gauge. Compiled from a myriad of indicators that affect women’s economic standing, such as entrepreneurial support and equal pay, it features 128 countries worldwide. Scores range from 70.6 at the high end (Australia and Norway, tied for the top ranking) to 26.1 at the low end (Yemen).
Fast fact: The Filipino culture may value machismo, but in business, women are considered equal to men. On the Global Gender Gap Index, for instance, the Philippines ranks second only to Norway in women’s ability to rise to leadership positions in enterprise.
The assumption that there are universal ways of thinking, feeling, and behaving around the world is misguided. As a CEO in the global economy, become culturally aware and learn to build trust, inspire respect, and create successful, long-lasting business relationships in Asia.