So what does this mean for those of us working globally? If we end up negotiating in another language, will our messages be mistrusted?

Solutions include (1) working with a native speaker to coach you in reducing your accent, (2) bringing a native speaker to the meetings as a fellow negotiator or interpreter, (3) and building personal relationships (and with the other parties before business begins.  Trust and credibility built in advance may outweigh such subconscious mistrust.

Yet another reason to build powerful business relationships across cultures.

And so, it was fitting that I spotted an article in the March 9th issue of the International Herald Tribune about how cross cultural understanding is the KEY to international business success.  Tanya Mohn gave several good examples–my favorite being about how a British proposal to an American firm fell flat because it began by listing all the pitfalls and risks. While the Brits thought they were doing a good job of disclosing the downside, their approach turned off the American clients.  Resubmitting the proposal with a positive spin clinched the deal.

In the Frankfurt business lounge I heard Russians negotiating with Aussies, and Italians speaking to Germans, to name a few.   Somehow we expect cultural business differences to arise between those folks–after all, they don’t speak the same native language–but not between Americans and British. However, yesterday’s article proved to the contrary. For a business payoff across cultures, you must know the other side’s cultural outlook–even if you both speak the same native tongue.

As this shows, professional service firms don’t have to be big players on the global scene–or be located in an international business hub–in order to develop business globally.

Just like JMGR, which now has designed hospitals in booming Chinese cities like Shanghai and Tianjin,  professional service firms can look for ways to take advantage of the increased growth in emerging markets. And cash-rich companies in emerging markets, like India and China, are also expanding abroad (creating even more opportunity for professionals). For instance, Indian corporation Tata upped its global prominence with the 2008 purchase of British-owned Land Rover and Jaguar–which is, according to Market Watch, part of an “aggressive expansion”.

In contrast, desperate Western companies are looking to move into emerging countries due to the slim prospects for growth at home.  For example, British insurance company Prudential has announced plans to purchase the Asian assets of American International Group for $35.5 billion;  Asian earnings would account for more than half of Prudential’s overall profits.  The Economic Times reports that American company Kraft purchased the British company Cadbury in part because of Cadbury’s Indian holdings.  After all, 38% of Cadbury’s recent growth came from emerging markets (as opposed to Kraft’s mere 20%).

Regardless of whether the expansion is into emerging or other foreign markets, the point is that companies are expanding globally.  And the globalization of companies creates more work for service providers such as accountants, engineers, lawyers, and architects.  So, how can you successfully capitalize on this international growth? Learning from JMGR, the answer may be simple.  As the story of Wang and the Memphis architects shows,  a simple business relationship  “can translate to a long-term, mutually beneficial business relationship”.

The Wall Street Journal explores the financial cost of such cross cultural mistakes in  “Expanding Abroad? Avoid Cultural Gaffes” (1-19-10 by Emily Maltby), showing how the lack of advance research and cultural customization can wreak havoc.

Remember the Chevy Nova, which failed to sell in Mexico (and other Spanish speaking countries) because “No Va” means “it doesn’t go”?  Well, this article provides up-to-date examples along those lines. It describes how an e-learning company created driving courses for sale abroad–but failed to research the driving customs of such foreign countries; for example, the course advised drivers to take the center lane on multi-lane highways–without customizing the instruction for Dubai, in which the center lane is used just for passing.  The article also described cultural gaffes–choosing words or a tone of speech that would have worked well in the US but caused offense abroad.

Globalization has spread, but separate cultures (with their own cultural values and customs) still exist. So, do your advance research and avoid costly gaffes.

Mary Kay is the quintessential, American, direct-sales success—and, against odds, it has taken that success to China. The company faced roadblocks, including Chinese laws that forbade direct sales (until the law changed in 2006) and Chinese consumers’ lack of interest in make-up. However, as Slate reports, the company has worked around those challenges, leading people to ask, How Do You Say Pink Cadillac in Mandarin?

First, Mary Kay adapted its product mix for Chinese consumers.  The company learned to focus more on bleaching, anti-aging and skin care products, which appeal to Chinese women, rather than traditional make-up, which appeals less. Second, once Chinese law permitted direct sales, Mary Kay aggressively increased its sales force—even  providing small interest-free loans to women wanting to enter its sales force.  Third, the company made its internal and external marketing messages culturally appropriate.  Although it still uses lots of motivational phrases and maxims with its staff and the public, the company adapts them when necessary—in one case replacing a Christian reference to “a more anodyne statement about faith.”

Mary Kay succeeded by noticing and responding to the Chinese middle class’s changing values —towards Western glamour and entrepreneurialism.  What can you do to tap into and respond to the changing values of your clients abroad?  How can you alter your marketing messages, business strategy, services or products to respond to these changing values?

Staying on top of shifts in policy, culture and economics in your ideal foreign market is the first step.  Establish a system for researching and mining information about new developments abroad to detect opportunities.  Then, like Mary Kay, hone in on those trends that can be translated to innovation—and respond.

And why should you care? Well, if you were approaching prospective clients from Australia, you might want to incorporate this information into your marketing. For example, you might launch an advertising campaign that ties into an Australian national holiday (like Australia Day on January 26^th), or simply acknowledge the holiday with a card, phone call or email. By analogy, think of how proud most Americans are of  Thanksgiving, and how much Americans appreciate it when non-Americans acknowledge the holiday’s significance.

While I’m not suggesting that you go overboard and woo your clients Down Under with inflatable kangaroos like these chaps did, I am suggesting that you tap into your prospective clients’ sense of national pride. To do so, research your clients’ culture–but make sure that you’re researching the right one. (See Your Client’s Cultural Identity–It May Not Be What You Assume).  Acknowledging  symbols of national pride is a another powerful way to build meaningful client connections across cultures.

Why not expand on this idea and look for interns from particular cultural backgrounds? If you want to develop more clients in China but don’t know much about the culture, for example,  you might look for an intern who is  Chinese (or at least from a Chinese background).  Although the intern’s business insights may not be profound, the intern could give feedback on cultural norms, business customs and the like–all of which are critical to successful global rainmaking.  Hiring an intern with a marketing, journalism or general communications background would be an added bonus.

How to Create a Great Global Conference: Strategies for Making Attendees from Different Cultures Feel Welcome and Included (Monday, February 9 from 3:30-4:15) and

Outsmart the Economy: Grow Business Globally (Tuesday, February 10 from 1:45-2:30)

Yesterday I was reminded of this when I led a session titled Captivating Clients and Co-workers across Cultures at the Professional Convention Management Association’s annual conference in New Orleans. Even though I always make my sessions interactive, this session felt different…like there was a certain international energy in the room.

Why? Well, the audience actively participated–-REALLY participated–-sharing interesting, international insights about doing business in places like Amsterdam and Potsdam, and personal perspectives from natives of The Netherlands, Turkey and the like. This created a rich, interactive, international atmosphere.

And this shows why an international presentation that is truly interactive always gives a greater impact. Because our world is still awfully vast, every audience member will bring his or her slightly different interesting, international experiences. Sharing those insights during the session enhances the international impact of the session–and makes it more interesting and memorable.

So, whether giving a keynote at a big industry conference or training a handful of professionals, invite international insights from the audience.  Everyone will enjoy–and benefit from–the high-impact international dialogue.

One American businessman angrily said after his lengthy–but inconclusive– negotiations with a senior Japanese businessman,  “He had the authority to make a decision.  So why didn’t he just decide?” 

As a culture, Japanese generally value group harmony and collective decision-making.  A senior executive–even one with the authority to make a decision unilaterally–may want to build consensus within his team before announcing his decision. For this reason, Japanese culture is called “collectivist”.

 In contrast, American “individualist” culture prizes each person’s independent thought. Senior executives often don’t build consensus with their subordinates before making decisions. Americans feel that each individual is entitled to his/her own opinion.  So, team members–even junior ones–speak up and express a dissenting view.

The result?  Unless the parties understand each other’s cultural outlook, the Japanese may see the Americans as impatient and disrespectful of authority, while the Americans think that the Japanese are indecisive and dragging their heels. In other words, there’s culture clash at the negotiating table. 

So, when negotiating with Japanese, be patient and be sure to treat them–and your own team–with respect. 

 And that’s just one tip for negotiating with the Japanese. There are lots of other subtle nuances, so read web articles, like this one article from All Business, about negotiating with the Japanese, or  books like Frank Acuff’s How to Negotiate Anything with Anyone Anywhere Around the World.

Global Negotiating Tip: no matter where you go, know before you negotiate.