A Guide to Russian-Foreign Relations

For foreign businesspeople, dealing with Russian business culture can be, if not shock, then at least a surprise. The barriers often consist of little details, misunderstandings, barely perceptible irritations. Yet business success can be just a matter of learning a few points of cultural etiquette.

If a Russian business partner says that something is “impossible,” it is still “negotiable”. “This is at least one of the things foreign businessmen should know in order to achieve success in Russia,” said Irina Pshenichnikova, associate professor at the International Management Department of the St. Petersburg State University.

Speaking at this month’s Cross-Cultural Business Communication conference, Pshenichnikova said that when working in Russia foreigners should be tolerant and in answer to questions “Why?” be prepared to hear “zhizn takaya” (Such is life).

The conference gathered both foreign and Russian top managers, who came to share their experiences with the specifics of business collaboration between people of different cultures.

Germany

Nils Kalle, German consultant at QM Bureau, who lived in Russia for nine years, said the difficulties in communication between German and Russian business partners may arise exactly because of cultural differences which may create misunderstanding. “The German mentality is based on such principles as ‘exactly,’ ‘on time’, and ‘100’ percent” Kalle said. “While in Russia, German businessmen come across such notions as ‘maybe’, ‘approximately’ and ‘somehow,’ he said. “Germans desperately care about exact structure, transparency, and every tiny detail,” he said. “Russians are not afraid of big deals and do them well. But they don’t worry so much about being a bit late, and can ignore details. Those culture differences can be exactly the ones to sometimes scare away Germans,” Kalle said.

Kalle said that one of his German clients who was to make a deal with Russian colleagues refused to do so only because the chief of the Russian office did not introduce him to some of the assistants present at the negotiations.“I saw how during negotiations my German client was really worried and kept looking at the people in the room that he was not introduced to. In the end he was not willing to deal with that company,” he said.

The USA

American James Beatty, partner of EMG LLG company who has lived in Russia for ten years, said Russian and American working people mainly differ in their views on vacation time, team work, tax and customs. Beatty said in the U.S. an annual vacation period comes to two weeks, and for Americans who open a business in Russia, it’s strange to hear that Russian employees expect not less than four weeks’ annual leave.

In a Russian office, people feel “almost like in their family” where they celebrate their birthdays and share money with those in trouble. Meanwhile, Americans tend to be more individualistic and in the office care mainly about their work. “Besides, when my clients start a business in Russia I instantly advise them to never apply logic to customs and tax, and not to expect help from either one,” Beatty said.

There is an amusing difference between American and Russian workaholics, Beatty said. American ones come to work as early as possible, “getting irritated that there’s not yet anyone in the office at 6 a.m.,” while Russian ones tend to stay at work late, “willing to have everyone working until midnight.”

Sweden

If one needs to deal with Swedes, he must be prepared to value teamwork and accept long summer vacations. In July and August the streets of Stockholm become almost deserted.

Lyudmila Murgulets, vice-president of the Stockholm School of Economics in Russia, said Swedes are very polite and tolerant; they have excellent listening skills and are great at reaching a consensus which appeals to all.

One of the biggest virtues valued in Sweden is modesty. “It’s a policy of the so-called expensive watch hidden behind the sleeve. That is, they do everything possible not to show that their financial situation is better than that of others,” she said.

However, for Swedes, whose historical situation has fostered a climate of safety and stability, it’s psychologically hard to open a business in Russia, a country they connect with certain unpredictability, Murgulets said.

At the same time, general manager of Kelly Services CIS, Yekaterina Gorokhova, who also worked in Sweden for a few years, said that from her observations the social security also makes Swedes a bit too relaxed. “I must say that Russian offices often work harder than some Swedish ones and are more dynamic,” Gorokhova said.

Gorokhova said she was surprised that in Sweden employees normally leave the office exactly at 5 p.m., the official end of the working day, and don’t stay longer even if the work has not been completed. Gorokhova said that in Russia people usually work longer hours.

South Korea

Pshenichnikova, who has experience working in South Korea, said that any nation’s culture reminiscent of an “iceberg,” in that “only 10 percent of a man’s behavior is visible [externally],” while the other “90 percent, the foundation ideas and values, are hidden in the people’s subconsciousness.”

Pshenichnikova said that when she first arrived in South Korea she often had a tough time trying to understand what messages Koreans were tactfully trying to signal. “I was surprised to know that in South Korea people prefer to give and receive bad news as late as possible, while for instance Russians and Americans prefer to know them as early as possible,” she said.

She said that the Korean approach was conditioned by their culture of not wishing to ruin the harmony of their surroundings with negative information.

Japan

The success of a business or a product may not carry over to another country unless it takes into account the local mentality, said Pshenichnikova. As an example, she listed the case of Procter and Gamble. When the U.S. firm entered the Japanese market in 1973, it chose an American marketing approach – aggressive advertising, an accent on low price and big economical packages. However, Japanese, who traditionally prefer to avoid aggression and think that low price indicates bad quality, did not buy the company’s product. In the end, Procter and Gamble had to rethink its marketing strategy completely.

In pairs, scan the report to collect appropriate evidence to answer the following questions. Each pair will work on one question only. Share your findings with the rest of the class taking turns. This way you will have the answers to all five questions. When listening to your peers, take notes which will help you summarize the article later.

1. What culturally determined differences in Russian-foreign business communication do the participants identify?

2. According to the speakers, what examples of these differences are funny things which you may come across in a foreign country?

3. What differences in attitudes are exemplified in the text as those which may put at risk the success of business relations with a foreign partner? What implications may they have?

4. Make a list of specific virtues you can infer from what the speakers say and match them with the nations which value them (Germans; Americans; Swedes; Koreans; Japanese).

5. Which of the virtues should be cultivated more in Russia? Discuss your viewpoints in groups.

Date: 2015-12-24; view: 1559