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Countless conversations are heard in China regarding how to get the Western organizations up and running quicker and more efficiently. As this is our business focus, we headed up a massive 3 year research project with leaders of Western multinationals operating in various regions in China. One interesting fact is that Western managers generally focus on how to change the Chinese employees to adhere to Western management style and philosophy. The question we might ask ourselves is; are we going about this in the most effective manner? Let us turn the table around and view this from a different perspective.

- Imagine a Chinese manager starting a company in a Western country. He decides to structure the company according to traditional Chinese hierarchy, implements Chinese leadership philosophy and in addition insists on everyone speaking Chinese. How successful do you think he would be? Now, imagine 10,000 Chinese companies doing the same thing, in the same area. One can easily envision the opportunities surfacing for local employees skilled in the Chinese language, culture and desired work practices. Now, you may think that this is an exaggerated assumption, but it is in fact very real. For example, in 2007, there were 9500 Western companies registered in the eastern part of Shanghai, Pudong, alone. In such a rapidly expanding marketplace, how can you assure that your company will be the local talents’ top choice of place to work?

Using face to face exploratory interviews, we asked Western leaders what they perceive to be their single biggest challenge in daily operations. The results were certainly quite different from the general talk we had heard before. HR executives and corporate development programs in most cases appear to focus on leadership skills programs according to Western best practices.

Our research showed a need of something else was even more overwhelming. As shown in the pie chart, as much as 65% of Western leaders perceive Assertiveness skills and Accountability to be the most challenging behavioral differences to overcome. A closer study of this result does not show Chinese lacking the ability to use such skills. However, the practice of Assertiveness in a business environment is widely different in Western vs. Chinese business culture. Failing to understand how to use Assertiveness in our respective cultures, cause much confusion and friction. Unless properly addressed and managed this leads to miscommunication and inefficiency. We frequently witness how culturally inappropriate communication and behavior lead to poor workplace environments with unsatisfied employees. These unsatisfied employees constitute a large part of the notorious employee turnover quota plaguing many international companies in China.

A good leadership program includes communication and behavioral training sessions. However, most leadership development programs we see in China do not include the identified 65% cultural Assertiveness and Accountability training. This is quite unfortunate as this means most companies fail to establish culturally effective communication. We believe that an understanding of the expected behaviors for culturally effective communication is the platform for companies to build their organizational capability upon. I therefore stick out my nose and say: “Are we not focusing our efforts on the wrong things here?” It seems to me logical to start any development program in China by establishing a solid understanding of how we communicate effectively in our respective environments. Before doing so, I expect companies will keep struggling with high employee turnover and failing to tap the potential of their Chinese operations.

Our research clearly shows that training Chinese staff in Western management and best practices is necessary, however, the Companies which are most able to adapt to the new environment will have the best access to the market. Therefore, make it easy and comfortable for the most qualified Chinese staff to come and work for your organization by adapting as much as possible. Western Managers will be well served by keeping in mind that it will always be easier for them to initially adapt to the customs in China, than to change the behaviors of all of their employees.

Peter J. Karlsson
CONCHIUS Limited - Facilitating Excellence through assessment and training with measurable results.