Hurdles to Cross Cultural Business Communication

International businesses are facing new challenges to their internal communication structures due to major reforms brought about through internationalization, downsizing, mergers, acquisitions and joint ventures.

Lack of investment in cross cultural training and language tuition often leads to deficient internal cohesion. The loss of clients/customers, poor staff retention, lack of competitive edge, internal conflicts/power struggles, poor working relations, misunderstandings, stress, poor productivity and lack of co-operation are all by-products of poor cross cultural communication.

Cross cultural communications consultants work with international companies to minimise the above consequences of poor cross cultural awareness. Through such cooperation, consultancies like Kwintessential have recognised common hurdles to effective cross cultural communication within companies.

Here we outline a few examples of these obstacles to cross cultural co-operation:

Lack of Communication

It may seem obvious to state that non-communication is probably the biggest contributor to poor communication. Yet it continues to prove itself as the major problem within most companies.

Lack of communication with staff is not solely due to lack of spoken dialogue. Rather it relates to access to information.

For example, not giving feedback (negative or positive), informing staff of decisions and actions that will affect their roles or failure to properly communicate expectations are all ways in which information can be withheld from staff. This will eventually result in an alienated staff base that feels divided from management and superiors.

If managers are too selective in providing information, this can cause suspicion and jealousy among staff and will eventually result in internal strife instead of cohesion.

A management which does not and will not communicate and interact physically with staff demonstrates a lack of interest, trust and respect.

In the West it is often the case that communication lines are vertical. Staff report up to managers and managers up to senior levels and so on. Ideally lines of communication should run both ways. Those with a subordinate place in the communication process tend to feel estranged, indifferent and possibly even belligerent.

Lack of communication in all its forms is unhealthy. Companies and managers must be aware of how, what and to whom they are communicating.

Language

Communication difficulties through language come in two forms:

Use of inappropriate language

Language carries with it subliminal meanings and messages transmitted through vocabulary, stress and tone. The wrong use of words or emotions hidden behind phrases can send messages that affect staff self-perception, confidence and attitude. Critical language causes poor interpersonal relationships and low self-confidence whereas supportive language and tones has the opposite effect.

Foreign Languages

These days, offices may have native speakers of over 50 languages all under one roof. It is important that the main language of the office is established, whether it be English, French or Spanish. Once this is constituted all employees should only converse in the main language. This avoids exclusion of staff who can not understand other languages. In addition, a company should ensure that all its employees are fully conversant in the main language. Language tuition should be seen as a necessity not a luxury.

Culture

International businesses with a highly diverse workforce in terms of nationality and cultural background face challenges from the differences in language, values, belief systems, business ethics, business practices, behaviour, etiquette and expectations.

Cross cultural differences can negatively impact a business in a variety of ways, whether in team cohesion or in staff productivity. As we have seen above, different methods of communication are just one area in which cross cultural differences are manifested.

In such multicultural companies, objective help may be needed through a cross cultural consultant who will show teams and individuals how to manage communication and work together more cohesively and productively.

Company Culture

Company culture pertains to the internal culture of a company in terms of how it is managed. For example, does the company view its different departments such as sales, production, administration and HR as closed or open systems? A closed system is one in which a total lack of synergy exists between a sales and production department due to the structure and communication lines between the two. A consequence of such compartmentalization is that managers of departments have a tendency to become territorial. It is vital that team work, team building and team spirit are encouraged in order to create open systems.

Such measures are especially valid in joint ventures and mergers whereby co-operation between two or more companies requires their total commitment to an open system.

Understandably many companies are primarily focused on the financial and strategic side of company operations. International businesses are now realising that many of their business problems have roots in man-management and communication.

In summary, we can conclude that the biggest hurdle to effective cross cultural communication is a reluctance to invest in the expertise and resources needed to overcome the problems as outlined above. Cross cultural hurdles are easily negotiable with some objective and well-qualified assistance.

© Kwintessential Ltd

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About Neil Payne

Neil Payne is Director of Cross Cultural Communications consultancy http://www.kwintessential.co.uk


And here is another random article you might be interested in...

How to Analyze the Veracity of Investment Newsletter

When trying to analyze whether a promotional ad for an investment newsletter or a market timing investment trading system is worthy of investigation, the following questions should be asked:

Does the strategy have a track record? Without this you are really allowing your emotions to be in play. All of us want to believe that if someone says something it must be true. Yet the sad fact is the truth is probably just the opposite. Most ads and promotions are put in print for self interests first, and all else second. One has to view anything on the web with a skeptical eye. The minimum that an investment strategy should give you is a previous track record. The longer the track record is the better. Something that has worked for a matter of months is usually not long enough in the trading world to be considered successful. Some promoters do not release their track records because they say that "past performance is not an indication of future results". This is true but certainly no performance is not an indication of future results either. Some promoters do not release their track records because they say "we used to do a track record but subscribers got upset if the strategy lost money when they subscribed even though it made money over a yearly period." That may also be true but it is also part of the game. Subscribers can not expect to make money from day one when trading a long term strategy. However, that should be self evident in the track record. And some promoters do not release their track records simply because they don't have one or they have a bad one. It's as simple as that no matter what they say.

Is the track record that they are promoting in real time or was it simulated in a computer based on past data? What does this really mean? Real time means that the trading signals that were used to produce the track record results were actually generated at that specific moment in time. In reality. Most track records on the investment web sites are not real time even when they say they are. Even if they did not use a computer and it was done by hand, if the data taken from the last five years but the web site is only a year old then it can't be so. Why is this so important? Because trading is not trading if human emotions are removed. No greed, no complacency, no panic, no hysteria. Almost all computer-generated trading programs fail miserably when actually implemented because either the data was too short a time period or the human factor was ignored. That is assuming the human that input the data did it without human emotion. I once had an acquaintance who told me he had a system that returned 80% per month for the last 6 months. He said he implemented it 6 months in real time. I asked how much he had invested in this strategy. He said nothing because he was paper trading. I said that there is no such thing. He proceeded to tell me what paper trading was. I replied that I knew what he thought paper trading was but it is not trading because when you paper trade your emotions are not in play. Human greed and ego has a way of making you believe something to be real without looking objectively at the data. But once actual real money is at risk the complexion of the situation dramatically changes.

How can you tell if the track is in real time if they lie about it being in real time? This is not always easy but there are some basic tell tale signs. If it is a short term system that risks very little and trades often, say 10-50 times per month. Yet it has an 80-90% trade success ratio, which is almost impossible statistically. Most day traders and position traders are doing well if they are winning 40-50% of the time. If they risk more and do not use tight stops, then the win loss ratio goes up but the size of the drawdowns or the size of the largest loss has to go up. Longer term trader may have a slightly better win loss ratio but only if their risk is also larger. To make a general statement, the larger the win loss ratio is the more I would be skeptical.

What if the track record is a combination of partly historically back tested signals and partly real time signals. How should I analyze that? The first thing to look at is if the win loss ratio has changed dramatically over the track record time period. For example, if it is a 5 year time period, and the promoter claims that the trade signals went live 2 years ago yet the win loss ratio changed dramatically only 6 months ago, beware. The hardest thing to detect on the web is when you're being conned about a hypothetical track record because there is no real way to tell when a web sites track record was edited deleted or revised. Some web sites use an independent tracking site but there are no real ways for a consumer to know other than that.

I hope that the previous ideas will help to determine fact from fiction in the world of investment newsletter promotions.

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About John McKeon

John McKeon
Rye, NH
http://www.buypanic.com
buypanic@buypanic.com
Private Placement Fund Manger and owner of bupanic.com an investment newsletter
info@buypanic.com