Tomalin B., Nicks M. The World’s Business Cultures and How to Unlock Them
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of superpower status in the 1990s. There is an expanding middle class, and a
consumer economy thrives, at least in major cities. However, for the business
community, Russia can still seem a daunting prospect. The country derives
the bulk of its export revenue from commodities, which can leave it exposed
to fluctuating prices. It must modernize its manufacturing industry, reduce
corruption and crime and make its banking and other business infrastructures
more welcoming to foreign investors. Even so, Russia is now enjoying greater
stability than at any time since the momentous dismantling of the USSR in
the 1990s.
Values and attitudes
Billionaires who can buy British Premiership football teams with the cash in
their back pocket may have given a false impression of what Russians are
really like. Most of them share a highly communal and collective spirit. This
dates not just from the decades of Communist rule in the twentieth century,
but from long before the industrial era, when agrarian life was dominated
by village communes and the traditional artels, cooperative associations of
workers.
The analyst and former Russian Minister of Economics, Yevgeny Yasin, notes
the following traditional values among his countrymen:
• An emphasis on spiritual principles and moral laws;
• A propensity for teamwork based on a history of collectivism;
• Sobornost – the community of the individual will and the endeavours
of the people;
• The joy of working;
• A tendency to make far-reaching plans and sweeping actions.
Some of these can have unfortunate reverse implications – collectivism can
lead to the suppression of individuality and the creep of authoritarianism –
but overall he believes that the Russian people’s qualities can enable to them
to adapt to their challenges.
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Cultural style
Russian business depends on good relationships. Proceedings usually start
formally, but the business will only develop if good informal bonds are created.
Russians would describe themselves as polychronic and relaxed about time:
it’s more important to complete the business in hand rather than stick to strict
timetables. Initially, Russians may appear reserved, but they are happiest in
an environment where they can freely express their emotions.
Russia/UK cultural styles – a comparison
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Communication
1 COMMUNICATION STYLE
2 WORKING STYLE
3 DISCUSSION STYLE
4 BUSINESS ATTITUDE
5 LEADERSHIP STYLE
6 BUSINESS RELATIONSHIP
7 DECISION-MAKING STYLE
8 BASIS FOR DECISION-MAKING
9 ATTITUDE TO TIME
10 WORK/LIFE BALANCE
Live to work Work to live
Scheduled Flexible
Facts Instincts
Individualistic Collective
Relationship Task
Flat Vertical
Progressive Traditional
Fast-moving Slow and measured
Formal Informal
Direct Indirect
UK
Russia
Communication
Good speaking skills are valued in Russia, but they will also note your tone
of voice and body language. Russians appreciate a warm, relaxed approach,
and will often ask you personal questions about your family and life in your
home country. They can be quite tactile with people they regards as friends,
but they are also direct and blunt, and mean what they say. This is unlike
most relationship-focused countries, but learn to appreciate their candour
rather than fear it.
Russians are interested in the credibility of the speaker in terms of experience,
qualifications and knowledge and you must establish this. Strong eye contact
is important, and you should shake hands firmly. It will help if you have your
business card printed in two languages – yours and Russian.
Russians have a moderate attention span of 30-45 minutes. They will not
appreciate you starting off with a joke, so keep your presentation serious,
and include facts and technical details. But given what we’ve already said
about the Russian personality, you can feel free to inject some emotion into
your proposals. Russians enjoy looking at new ideas, but they distrust anything
that sounds too official. Avoid words such as ‘aggressive’ and ‘compromise’:
instead, talk about meeting each other halfway, or propose actions that depend
on equal concessions from both sides.
Russians are sensitive to what they consider nyeculturny (uncultured)
behaviour. This includes swearing, not depositing outer garments in the
garderobe, lounging and standing with hands in pockets, shouting or
laughing loudly in public and whistling indoors. People shake hands on meeting
and leave-taking (older men may kiss a woman’s hand). Smiling on greeting
is not automatic (it helps to explain the tradition of surly service in Russian
restaurants, shops and hotels), but shaking fists and the American A-OK gesture
is considered rude.
Organization
Business hours are 9am-5pm Monday to Friday. It’s important to allow plenty
of time for appointments. Meetings can start late and run much longer than
planned: punctuality is not generally a Russian virtue.
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Meetings and negotiations
Meetings in Russia tend to be long, and often followed by meals. They’re also
quite formal, reflecting the hierarchical structure of Russian business,
although it is important to preserve uravnilovka – egalitarianism, or the idea
that nobody is better than anybody else. You should respect this formality
in your style and dress, especially at first encounters. Russians may start and
finish late, so be flexible in timing. Meetings may also be subject to
interruptions.
When it comes to negotiating in Russia, good personal relationships are what
get you through. Your counterpart should like you and trust you. Russian
business depends to some extent on blat, a network of contacts and favour.
Although it is less strong than it was once was, it will help if you can operate
in the spirit of blat.
Most business is done face-to-face, so frequent visits or phone calls to Russia
are important. Russians have a variable negotiation style ranging from extreme
patience – sitting you out – to strong confrontation. Stay calm: patience is
also the strongest card that you can play. Russian negotiations may proceed
by concession, so it’s important to build some into your proposal and offer
them at appropriate moments.
If there is disagreement, try to show that you understand their difficulties.
Be direct and straightforward. Share in their soul-searching of what is wrong
or causing problems. Talk in terms of personal recommendation rather than
of direct orders or regulations. Build up trust through clarity of action, keep
your inner circle small and at all times aim to build trust.
However, it is important to monitor subsequent performance. Don’t put facts
before feelings and don’t be sophisticated or devious because Russians are
privately quite straightforward.
Russians often send a written confirmation after an agreement has been
reached to protect themselves. They are, however, prepared to renegotiate
the fine print of a contract after it has been signed if it seems appropriate.
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Team-working
Teams need to be built on individual trust, so it’s important to establish a
personal link with each member of the group you’re dealing with, and to know
them well. Asking advice is important, and is not seen as a weakness. Once
people cooperate with you, it is then important not to disappoint them. Make
sure the working process is highly organized and structured, and that you
and they know who is responsible for what. Unofficial channels and
processes are as important as official ones, and can cut through red tape.
Team strengths in Russia tend to be their ability to forge relationships, and
come up with imaginative solutions. They’re less strong on implementing and
completing tasks. Team members are selected primarily on their competence
for the role, although educational qualifications and family connections can
also be influential. The team leader makes all decisions, and is usually well
connected to other decision-makers.
Leadership and decision-making
It’s important to bear in mind that Russia only began to evolve from its
combination of traditional patterns and Soviet coercion in the early 1990s,
so it is hardly surprising that Russian business tends to be hierarchical. The
top man in the company makes all the decisions, which has two corollaries:
it slows down the process, and it means that you must make sure that you’re
negotiating with the right person.
In Russia, it’s who you know, not what you know. As in many other countries,
the exchange of favours ensures that things get done: in Russia, this system
is known as blat. Although women have equal status to men in many areas
of business, especially in academia and administration, at top levels posts
are mainly held by men. Women visitors may be subject to ‘old world’ courtesy
and gallantry, but may also feel patronized as senior Russian businessmen
are less used to dealing with female executives on an equal basis. Russian
senior managers, both men and women, tend to dress to impress, and observe
some formality in their attire and public behaviour. You should do the same.
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Socializing and gift-giving
Don’t go empty-handed: gifts may be exchanged with a foreign visitor if a
meeting has gone well. Russian executives appreciate the offer of good quality
presents, especially those carrying a well-known logo. On the other hand, a
small business gift may not be treated seriously.
An invitation to a Russian home is something to be prized – you should definitely
accept. Dinners tend to take place early (around 6pm), and it’s important to
prepare something complimentary to say as toasting the host, the country
and the relationship is common.
In a meeting, the table may be laid with zakuski (snacks) and even vodka. If
so, eat and drink sparingly. If you are hosting the meeting it will be
appreciated if you provide some snacks, but alcohol is not necessary.
Great gifts: good quality brand-name products. Flowers, alcohol or a luxury
food item are appreciated at a home visit.
Avoid giving: Poor-quality items – the days when you could get away with
secondhand jeans, tights or magazines are 30 years out of date.
Conversation topics
Ice-breakers Ice-makers
Russian culture, literature and art Chechnya
Russian achievements Criticize Russia (even if Russians do it)
World War Two (the Great Patriotic War
in Russia)
The Communist period
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Blank
Doing business in the
United Kingdom
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Doing business in the
United Kingdom
Overview
A group of north-west European islands, and a member of the EU since 1973,
the UK is a monarchy that never seems quite sure whether its key alliance
lies with Europe, the USA or the Commonwealth. It has always resisted joining
the Eurozone, maintains sterling as its currency and opts out of much of the
European Union’s Common Agricultural Policy. It claims a ‘special relationship’
with the USA that extends back to the two countries’ common roots (the Pilgrim
Fathers sailed from Plymouth, on Britain’s south-west coast, to America in 1611),
and remains a leading member of the Commonwealth, a loose association of
countries that were formerly part of the British Empire. In some of them (Canada,
for example) the British monarch is still considered Head of State.
Its 60 million population and common language (English) conceal quite deep
social divisions. First there are the four main nationalities; English (the majority),
Scots, Welsh and Northern Irish. Then there are the main migrant groups
who have settled in the UK from Commonwealth countries, principally the
West Indies, India and Pakistan and most recently the Central and Eastern
European arrivals from the new EU entrants in 2004. Finally, within England
itself there is a traditional rivalry between the old industrial north and the
more affluent south.
Five Ways to Succeed Five Ways to Fail
Deliver on time, without drama Boast about your achievements
Arrive at meetings punctually Talk for an hour in a presentation
If you’re having difficulties,ask advice
immediately rather than risk missing a deadline
Phone people in the evening about work
Check at the end of a meeting exactly what the
Brits expect of you
Let a colleague down once he or she
believes they can depend on you
Join them for a beer after work, or in the gym
(many Brits now avoid alcohol)
Be patronizing to women