The China Venture
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The China Venture

The China Venture The China Venture

lim.ethz.ch
11.12.2012 Views

Qualification profile (what manager should know before they start their assignment) Intercultural skills 74.5% Negotiation skills 74.5% Know how of contractual law 50.9% Language 47.3% Communication skills 41.8% Management of personnel (HR) 41.8% Knowledge of political environment 40.0% Marketing skills 40.0% Financial management skills 27.3% Co-operation ability 23.6% Knowledge of economical environment 18.2% Logistical skills (information technology) 12.7% International relations 10.9% TABLE 3-9: Qualification profile of managers working in China % of managers working for companies in China The assignee’s profile should additionally show a high degree of self-initiative, willingness to take risks, ability to improvise and - as a part of the intercultural skills - a lot of empathy and sensitiveness towards the foreign partners and their culture. It should be a must to also evaluate intercultural skills during the selection process for expatriates. Most common in practice are assessment centres as China related tests ("critical incidents“, case studies, role or plan plays) to assess the multicultural skills of a candidate. In Switzerland various external consultants offer this kind of selection tool which may be used and adapted to the specific needs of an SME selecting external or internal employees for such assignments. Besides leadership skills, professional, social and self-competency (personality) other personal factors of an assignee should also be considered like good physical health, emotional stability and willingness to work long hours. The good integration of the partner and/or family in the host country may have a huge impact on the success of the assignee. So also from the partner and/or family flexibility and adaptability are demanded. Decisions whether somebody starts an assignment or not should never be taken without the partner of a candidate assignee, as today dual career couples are fairly common. 3.2.12 Management of Relationship One of the key points certainly is the use of guanxi or also the use of "Western guanxi" before starting with a project within China. 102

As a conclusion, network oriented measures (for any activities) are key. First of all, it is recommended to do business with "small numbers". Before investing considerable funds, official partners or future JV partners should be tested. Business contacts should be implemented step by step. If not possible (in case of huge projects) it has to be tried to become part of a multilateral network (even beyond Switzerland or Europe). As long as foreign competitors can be played off against each other, the Chinese Government will do it. Try to establish excellent bilateral contacts. This also means long journeys to China with significant persons from the own company (or Swiss Government officials or Swiss ambassadors) in the delegation. Do not always and in all phases of the process of a project or JV include lawyers in negotiations. This could create mistrust and defence. A common dinner counts more than ten negotiation days. Collect information about your partners (preferred drinks, number of children, etc.). This is not against data protection but attentiveness towards your partner. Show interest in your partner, discuss themes like family, roots, training, life experience, financial situation. Never forget to stay in contact. Unacceptable are missing greetings to the Chinese New Year. The atmosphere in coming together with Chinese people always plays an important role. For example, conflict points should be discussed at informal occasions like dinner. Business and friendship cannot - as in European countries - be separated: they always go together. That is why one should never do business with a Chinese partner if one does not like each other. 112 Finally, never forget that the construction of a long-lasting network or even friendship can be a long process even though your partner may call you "old friend" after two meetings. Do also not forget, that instead of subject and monochrome related procedures, Chinese partners often plan in person-oriented and polychrome ways. The black dots indicate useful persons which all are connected within one network. The following chart may help to clarify this understanding: 112 Source: Swiss newspaper "Handelszeitung", issue 24, June 12, 1997, p. 57. 103

As a conclusion, network oriented measures (for any activities) are key. First of all, it is<br />

recommended to do business with "small numbers". Before investing considerable funds,<br />

official partners or future JV partners should be tested.<br />

Business contacts should be implemented step by step. If not possible (in case of huge<br />

projects) it has to be tried to become part of a multilateral network (even beyond Switzerland<br />

or Europe). As long as foreign competitors can be played off against each other, the Chinese<br />

Government will do it.<br />

Try to establish excellent bilateral contacts. This also means long journeys to <strong>China</strong> with<br />

significant persons from the own company (or Swiss Government officials or Swiss<br />

ambassadors) in the delegation.<br />

Do not always and in all phases of the process of a project or JV include lawyers in<br />

negotiations. This could create mistrust and defence. A common dinner counts more than ten<br />

negotiation days.<br />

Collect information about your partners (preferred drinks, number of children, etc.). This is<br />

not against data protection but attentiveness towards your partner. Show interest in your<br />

partner, discuss themes like family, roots, training, life experience, financial situation. Never<br />

forget to stay in contact. Unacceptable are missing greetings to the Chinese New Year.<br />

<strong>The</strong> atmosphere in coming together with Chinese people always plays an important role. For<br />

example, conflict points should be discussed at informal occasions like dinner. Business and<br />

friendship cannot - as in European countries - be separated: they always go together. That is<br />

why one should never do business with a Chinese partner if one does not like each other. 112<br />

Finally, never forget that the construction of a long-lasting network or even friendship can be<br />

a long process even though your partner may call you "old friend" after two meetings.<br />

Do also not forget, that instead of subject and monochrome related procedures, Chinese<br />

partners often plan in person-oriented and polychrome ways. <strong>The</strong> black dots indicate useful<br />

persons which all are connected within one network. <strong>The</strong> following chart may help to clarify<br />

this understanding:<br />

112 Source: Swiss newspaper "Handelszeitung", issue 24, June 12, 1997, p. 57.<br />

103

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