In an era where political correctness is a priority, pointing out that there are differences among nations can lead you into a dangerous zone. Moreover, generalizations can lead to incorrect conclusions or hurt someone. Generalization is not good for business either. However, differences in culture, attitude towards work, ethics, communication, or attitude towards time exist, which does not mean that some are good and some are bad, or that certain nations are worth more than others. They are different. If you are aware of the differences and understand them, you will find it easier and better to cooperate, build better relationships, avoid unnecessary misunderstandings, anxiety, and close more deals. Business is still negotiated with people, products are made for them and with them. As long as this is the case, understanding people will be crucial, and you will find it difficult to be successful without it, even if you have an excellent understanding of the market, finance, products, and competition. This topic is also relevant given the increasing number of foreign workers in our country. Understanding will help employers make workers more productive and simultaneously more satisfied. ‘Tactician’ from Trnje and in Vienna At the beginning of my work at Erste Group, I was appointed a member of a body called the Group Executive Committee. It consisted of members of the holding’s management and the presidents of local banks. We exchanged opinions on various topics, including the organization of the group. I enjoyed participating. Some members had enviable experience in leadership positions in banks around the world, and it was a good opportunity to learn. The group was quite decentralized and free compared to the competition. However, Central Europe is not the place where conversations are held most openly in the world. At one point, the CEO of the group said: ‘We have been talking about the organization for a long time, at many meetings, it is time for everyone to openly say what they think. We have wasted too much time on tactics.’ ‘Finally,’ I thought, and finally said how I see things. I was careful not to overdo it; I was new, the youngest in age and experience, from a small bank and a small country. During a coffee break, the CEO of the group, who tolerated me more than others, called me aside and asked: ‘What was with you, what did you say and how did you say it?’ That is when I realized that an open conversation in Zagreb’s Trnje and in Vienna does not mean the same thing. Even in a relatively small area like Central and Eastern Europe, where most have at some point been in some common states, there are differences that can complicate cooperation. I learned that my colleagues from the Czech Republic, when they ask for details during a presentation that, in my opinion, operators should know, are not provoking me. Their organization in the bank, the amount of detail, and the care for them was unimaginable for us. I understood them better when I remembered what the garages and workshops of my distant relatives in the Czech Republic looked like, all possible tools lined up in rows and boxes, which is not even the case in our pharmacies. Hungarians were usually the most aggressive; it was normal for them. By the way, for a while during my sixteen years in the group, I spent the most time with a Hungarian colleague. Austrians are a nation that has ruled over others for centuries; they are more careful about what they say and think more about the next steps. You don’t drink, therefore you are hiding something The old story that you cannot do business in Russia without a huge amount of vodka consumed is becoming less true with new generations. A friend who lived and worked in that country for a long time told me their explanation for this old practice. There is a well-known saying that a drunk speaks what a sober person thinks. If you cannot relax and drink with a business partner, in a restaurant or sauna, it means you have hidden intentions and want to deceive. If you are not afraid of saying something, why would you avoid a drink? Time is not the same for everyone Business customs differ in various countries. In some, closing a deal without a joint outing or at least lunch is considered uncultured; in others, it is not necessary. The attitude towards time also varies. For Swiss or some friends who have built their business in England, being late is a significant sign of disrespect and is absolutely unacceptable. There are countries where this is much more acceptable and is not such a problem. By the way, I do not know if the Swiss know the term ‘academic quarter’ and where they apply it. I also know Croats who are very focused on punctuality. This is often a characteristic of those who have been in the military, especially those who commanded in it. The time needed to agree on something is also different. Time for the Chinese and Americans does not flow the same; the former are much more patient and negotiate more slowly. Suspicious, from another province There are differences even within a single nation. During a time of greater immigration from one country to Croatia, I assessed that there was a critical mass of work and planned to open a small office in Zagreb for these newcomers. I bought a book, for myself and my colleagues, about culture and customs. A location was chosen, and catalogs were prepared in their language. Only a few knew Croatian, and for some, even English was demanding. I wanted to hire at least one of their nationality, both for language and better understanding. Human resources, more difficult than we planned, found a candidate, a valuable and ambitious student who was finishing economics and had a Croatian girlfriend. I knew some of his compatriots who had been successfully doing business in Croatia for some time and asked them to have coffee with our potential colleague and share their opinion. After the conversation, they said he seemed valuable and smart, but that we should not hire him. I asked them to explain. ‘You see, we are practically all from one province, known for good and reputable merchants. Our families have been doing business with each other for generations. He is from a completely different province whose residents are not known for being the most honest; we do not like them. Communication would be easier, but we prefer that a Croat looks at the state of our accounts.’ Sensitive ethical differences Ethical issues are even more sensitive. I have not done business with Nordics, but from what I have heard, they truly nurture trust, transparency, and high ethics. Negotiations should end well for all participants. Parties will inform each other about the most important facts and generally will not hide them. There are countries where, for ‘real’ negotiators, the entire process is meaningless if they do not deceive you at least a little. What is an art and proof of intelligence for some can be unethical and incorrect for others. This applies to individuals, regardless of nationality. The relationship and perception of what is ethical are certainly not the same in countries where the gray economy accounts for 7.5 percent, like Switzerland (World Economics), or in those where half the economy is in that zone. The same goes for corruption. Denmark is best positioned with ninety points according to the perception of corruption (Transparency International), while Somalia is last with twelve points. This data speaks volumes. Most likely, you will not be successful in Somalia without corruption. This, of course, does not mean that there are no corrupt Danes or incorruptible Somalis. We can also imagine that there is a zone that some would perceive more as good business practice, while others would see it as receiving a bribe. It can be done without it, but… Respecting and understanding diversity is not only related to communication. Client habits and expectations are also different. Globalization and digitalization erase differences, but they still exist. There are many details that are not crucial, but knowing them facilitates communication, shows that you have made an effort, and that you respect the other party. From the way greetings are made, to toasts, to who sits where… It can be done without it, but it makes it easier to build trust and mutual understanding. Managing an international team excellently is almost impossible without understanding individual nations. Their cultural background, origin, language, and sometimes faith will influence their thinking, behavior, and needs. Some behaviors in one culture are unacceptable, while in another they are considered acceptable. If you understand them, you will have a better relationship and manage more effectively. This, I repeat, does not mean that everyone is not a person in themselves and that general characteristics are applicable to all individuals. How similar are Fiji and Korčula I spoke with a friend who has vast experience working and selling on all continents. His impression is that people think they are much more different and special than they actually are. There are connections that are stronger than national ones. They explained to him in Fiji that they are completely different and that no one can understand them because they are islanders. My friend’s parents are from Korčula. He felt like he was in Korčula. In Fiji, they call coffee preparations made from crushed roots (he says you get addicted to them), and everywhere you must taste the host’s, which is, of course, the best, just like our olive oil or wine. They explained to him that their girls are the best and that he should marry one, which sometimes also happened to him in Korčula. These are banal examples, but the island mentality is generally similar. Long ago, I read that there are greater similarities between the inhabitants of capitals compared to people from small places, regardless of which country it is. His experience is that in less developed areas, the host will often invite you to eat something at their place, but this has not happened to him even in the smallest village in England or Germany.
How to do business with foreigners: Business is still negotiated with people, and they need to be understood
Gold worth preparation
It is especially important to prepare well for an important business event or ongoing cooperation. It is a great shame when misunderstandings of customs create the impression that the other party is doing something wrong or sending a negative message, thus jeopardizing business or relationships. The advice would be that, when doing business with nations you do not know, you communicate with even more respect than usual. Especially do not treat them as inferior. Do not react hastily. Emphasize similarities, while highlighting differences as wealth and positivity. Some topics are particularly sensitive or important for certain nations. It is useful to know what they are and to adapt your approach and behavior accordingly.
I do not know how much technology, new ways of working, and online communication will change the importance of understanding differences among nations and how much they will diminish. This depends on many factors. It is still important, and I believe it will be for at least some time. As long as this is the case, learn as much as you can about the people and nations you cooperate with. Be aware that in some things we are the same, in others different, all valuable as human beings. This will help you in successful business, avoiding frustrations and misunderstandings, and closing good deals.
