Increasing export sales in recession

James Foreman-Peck, in a report written for the Cardiff Business School, suggested that in 2005 British SME’s lost out on £3billion worth of export trading due to a lack of foreign language skills.

A Grant Thornton report in 2004 shows that less than one third of UK executives are capable of negotiating in more than one language.

A 2007 report under ELAN project showed that 11% of the businesses surveyed blamed the loss of a specific contract on lack of language skills – contracts with a value of between 8 and 25.3 million Euros.

All three of these studies suggested that SME’s and larger companies that have an active language policy fare better in international trading than those without.

Less than 16% of UK SME’s report that they have hired a native speaker to help with export to a specific market.

From these numbers we can deduce that British companies are relying on their native English and the fact that many non-English speaking countries do invest heavily in foreign language acquisition. There are very few companies of any size who can claim that business is growing in the current climate, and yet from these figures it appears that we are missing out on a trick! Selling at the moment is hard, and we need to be more aware than ever of anything that will improve sales.

There is a careful analysis to be made: how long will it take to learn the language well enough to be confident enough to take an active part in meetings in that language? How much will those lessons cost against the value of the contract and potential future business? What about the time involved – can the time spent learning the language, and not sitting at the desk looking for new business be justified?

So how long do you need? Well that mostly depends on how you learn, and not “how good” you are at languages! Learning for one or two hours a week may well take you a life time to get a basic conversational level, and the same may well be true for self-study. Each time you start a new lesson, or pick up the books/tapes you will spend almost as long remembering the previous lesson as you do learning new material. An unstructured visit to the target country is almost useless – speaking English is compulsory in most hotels, restaurants, and you would need to make a huge effort to practice the foreign language. The ideal solution is an intensive programme of study where you are immersed in the language for a large part of the day on a one to one basis, followed by an immediate opportunity to use the skills in a work environment. Two weeks of intensive tuition, followed by a week or so resting with a third week of tuition should provide a solid level of most European languages, and provided the language is used with native speakers in a business context, near-fluency is not hard to obtain quite quickly.

Do you really understand

Do you really understand? Communicating across cultures

Imagine a situation. You have just received a memo from your CEO (you work for a huge global organisation). In the memo, the newly appointed CEO states his vision for the company, and the core values he will be implementing as part of his new strategy. The core values are: Freedom, Respect, Integrity. Very simple values and easily understandable. In fact there is little doubt what he is looking for......or is there?

Are you really sure that you have the same definition of respect, freedom and integrity as your CEO?

Some examples might help, one I have lifted shamelessly from Mijnd Huijser (Author of “The Cultural Advantage”). An American newspaper published an article denouncing the levels of freedom and democracy in Singapore. It cited laws banning smoking in public places, consumption of chewing gum, the seemingly hereditary post of Prime Minister, the authoritarian manner of policing, and dictatorial government style. The conclusion of the article was that Singapore was not a free country, and the US government should be pressurising Singapore towards democratic reform. This article prompted (unsurprisingly) a large response from Singaporeans – one in particular was highlighted by Mijnd Huijser, which pointed out that if you were to walk two blocks from the Post building after dark you had a very high chance of mugging. Americans may well have the freedom to smoke and chew gum in public, but Singaporeans had the freedom from the fear of mugging (Singapore has one of the lowest crime rates in the world) and a very stable government that is able to present a consistent style.

For the American “freedom” is “freedom to....” – to the Singaporean, “freedom” means “freedom from....” Which interpretation is correct?

What about “respect”? For Western cultures, respect is largely a two-way process, that allows each person to value the others, to listen carefully, be polite, but it allows a certain amount of conflict (i.e. providing I am constructive and polite, I reserve the right to criticise, disagree, and ignore). In Asian cultures “respect” is one way – from the bottom to the top. In other words, your boss gets all your respect, whether you like him or not, whether you are work or not. Fons Trompenaars (one of the founding fathers of intercultural theories) uses a dilemma – would you paint your bosses house if he asked you to? To us Westerners, once you had removed the expletives, the answer would be “no”. However studies show that, for example, in China almost 70% of the workforce would definitely paint their boss’ house!

Again, we can ask, which interpretation is correct?

Integrity is another grey area. I suspect I am not shaking any idealist too much if I claim that everyone lies to some extent in their day-to-day life. However we try to remain true to our concept of integrity – honesty in our negotiations and relationships. Trompenaars uses the dilemma of a car crash which is entirely your fault, but witnessed by your friend. How will you expect your friend to describe the event to the police? In many cultures (covering approx. 80% of the world’s population) they would expect the friend to tell a huge lie to protect your driving licence. In Britain we would probably expect our friend to avoid the truth, by saying for example, they couldn’t really judge the speed, or they hadn’t noticed me drinking etc. In Switzerland 97% of those asked said they would tell the truth (that I was over the speed limit and had been drinking) – in fact there is a joke about the Swiss: Why is the crime rate so low in Switzerland? Because breaking the law is illegal!

Is it fair for the Swiss to judge the remainder (80% of the world’s population) as dishonest liars? Is it fair for a Venezuelan (70% of whom would tell a lie to protect their friend) to judge the Swiss as traitors to their friendship? Again, who is right?



If we return to our imaginary CEO and his equally imaginary memo above, we realise that he (or she) has a huge problem. If his core message cannot be communicated clearly, he is going to have to explain to his shareholders that he has failed in setting a new strategy for the company.

Again a hypothetical situation: a company wants to tap into the success of the Coffee shop franchise and make its chain of small coffee shops more “upmarket”. The CEO sends a memo to the local franchisees around the world– bring in some class to your operations. In New York the coffee shop brings in Styrofoam cups with lids on, and speeds up the service time. In Germany, they bring in recyclable cups. In Italy, the franchisees invest in bone china, expensive furnishings and artwork. In Britain, they put the price up. Unsurprisingly the CEO is horrified out how his employees have completely missed his point!


Intercultural communications skills focus on ensuring that your meaning is the same as the meaning as perceived by those who hear your message. We have to remove our assumptions of comprehension and become more explicit. Testing and retesting comprehension (obviously in a culturally sensitive manner – no one likes being patronised!). Learning how to transfer a message across cultures is one of the most important skills an international manager can have!




(Sources: The Cultural Advantage, Mijnd Huijser; The World’s Business Cultures, Tomalin/Nicks; Riding the Waves of Culture, Fons Trompenaars)

Exporting to the USA

Love it, or hate it, the USA should not be ignored. The economy is larger than the whole of Western Europe. Individual states have economies larger than many countries. California equates to the UK or Italian economy in size. New York State equates to China and Brazil.
Since 1948, the USA has been one of our top five export markets. It is our largest single market for both visible, and invisible exports. The UK and the US is each the largest investor in the other.
The biggest mistakes that new exporters to the USA make are:

• Underestimation of the sheer size of the country.
• Insufficient dedication of adequate management time/resources.
  

To succeed, concentrate management resources to win.
This requires planning and research. It is best to choose one state where there is a potential concentration of business, and then expand in gentle concentric circles. It takes time to enter the most competitive market in the world. Think in terms of ten years and plan for five.

Suggested methodology:

• The home page of the US Small Business Administration (www.sbaonline.gov) gives access to good pro-forma business plans (see Starting, Expanding, Marketing buttons).
• Use the gaps identified as a basis for your research.
• Define your potential target organisation closely.
• Identify the US Trade Association to which they belong. Obtain the directory.
• In which state are the membership concentrated?
• Is there a trade show(s)/convention that the Association sponsors?
• Amongst the associate members, are there candidates for distributorships, or consultants that could provide in-depth industry research?
• Is there a trade press issue that is a gazetteer of the industry?
  

Some useful do's and don'ts:

• Use US legal advisers for your GTS, distributorship, other agreements.
• The US is litigious. Their legal system and language is different.
• Obtain adequate product liability coverage.
• Can you sell your product in seven words? Americans have a short attention span.
• Everyone targets the US. Buyers are only interested in cheaper supply, a better technology, but demand commitment to the market.
• Quote only in US dollars, c.i.f. to their doorstep.
• Metric measurements are alien to most Americans.
• In all communications, avoid English colloquialisms. They will not be understood.
  

To be successful you will need three essentials, the right product, sufficient financial capital and adequate management resources. If you are missing one, my advice is don't attempt the market. If you have them, go for it!

Bob Smeaton is an occasional lecturer at Farnham Castle International Briefing Centre. He is also an Export Promoter, i.e., an external commercial adviser, for the North America desk of Trade Partners UK, the export branch of the Department of Trade and Industry with more than 30 years of direct experience with the USA and Canada including working and living in California, Texas and New York. May 2002.

Presenting to audiences whose first language is not English

Don't leave your audience in the dark!

As business becomes more global, we are speaking to an ever-wider range of nationalities and people. This is true not only in the multi-nationals, but also in the professions and the public sector. It is giving us greater opportunities for wider relationships and more business. Increasingly, the world is using English, and this appears to give native speakers great advantages. However, there are dangers as well...

The tendency is to think that one can go into a presentation without having to prepare for that extra English language element that our Japanese, German or Spanish counterparts have to. In addition, we may forget to prepare for different cultural perceptions; because if we use English, we often expect the cultural context to be ours as well.

Adapt your language to the audience

Careful preparation is required for business encounters with non-native speakers of English, both linguistically and culturally. Take the example of a medium-sized pharmaceutical company in North Italy. They supplied medicines to the Italian market, and the only language spoken by employees was Italian. The company was taken over in the mid-nineties by an Anglo-American multinational with its European headquarters in London. The new British general manager arrived and called a meeting for all management, to set out the new strategy. The employees understood little of the presentation, because he spoke fast, idiomatic English. They left the auditorium in a state of panic, knowing that in future, they would be reporting in English. The presenter had not adapted his language to his audience.

This is not an isolated example. Similar stories are heard whenever non-native speakers have to deal with native English speakers.

The young Spanish aeronautical engineer on a management development programme with British and Irish fellow students, felt isolated as he struggled to keep up with their language.
The group of French purchasing managers for a Franco-German pharmaceutical company had enormous difficulty understanding their British counterpart when he presented to them.
The Japanese manager of a Japanese electrical engineering company could not understand the Scotsmen on his team. The list goes on.

Use of Off-shore English is growing

We may ask: "Why don't they learn better English"? The answer is, they are doing so. Companies and individual invest heavily in English training, and there are increasing numbers of managers around the world using English daily. They use, however, a different form of English from the native speaker: 'Offshore English' (OE), is a practical, direct language used as a business tool throughout the world. It cuts out the idioms, expressions, indirectness, phrasal verbs and colloquial phrases that we use to add life, interest and magic to our language.

OE is growing rapidly. It enables managers from a Franco-Japanese automotive company to communicate effectively, or executives from an Italian-German manufacturing company to solve complex problems together. Frequently, non-native speakers tell us that it is easier to talk to the Dutch, the Germans or the Scandinavians in English rather than the Americans, Australians or British.

Why do native speakers not use OE? In our experience, it is because most people using English internationally do not realise that it exists. In addition, the relatively poor foreign language skills of native English speakers are well known, and many of us do not appreciate the practical difficulties of using a foreign language at work. We hear a frequent complaint: "There is one American in my team of ten Germans, and so we all have to speak English at team meetings in Germany". Or that the British manager has been in Madrid for two years now, and still is unable to understand a presentation in Spanish. There are accusations of laziness, but more frequently of cultural arrogance.

Cut out idioms

So, how can the native speakers help their non-native counterparts? Clearly, adapting their language to OE is crucial. "We'll do it willy-nilly" is difficult to understand. "We'll do it anyway" is not.

Cut out those delicious idioms we love, and use unconsciously.

A former British prime minister used a mass of cricketing idioms in a meeting with a Spanish minister proud of his excellent English. But talk of 'sticky wickets' and 'being stumped' totally confused him, and before the next meeting he demanded it be conducted through interpreters.
Phrasal verbs are a minefield for anyone learning English, and often a more formal equivalent will be more easily understood. To a Frenchman or German, "I'll contact her" is easier than "I'll get on to her", or "Let's postpone the presentation" is more understandable than "Let's put the presentation off".

Presenting internationally

We also need to take into account cultural differences when we present internationally. The more we know what an audience in a particular country expects, the more effective we can be. The British prefer the presentation to be short and to the point, full of humour, metaphor and analogies. However, this can appear lacking in seriousness in Germany or Scandinavia, or not detailed enough in Japan.

A presentation keeping strictly to the timetable will be appreciated in Northern Europe, but may be less relevant in Italy, as one executive discovered to his cost. Asked to present to an Italian business association, he delivered a concise, well-argued performance in two minutes! After he finished there was an awkward silence, and then polite applause. The other presenters spoke for much longer, some for as long as 20 minutes. The meeting ended two hours late, and afterwards the Englishman was approached by a friend, who asked: "Why didn't you spell out in much greater detail the many things I know your company can offer?" The Italians expected to hear a well-argued case with the appropriate embellishments, and felt short-changed by the concise English style.

Presenting internationally offers many challenges. We need to be aware of not only what we say and how we say it, but also what our audience expects from a presentation. The more we know about our own language, and how to adapt it to a non-native audience, the more the audience will understand, and be able to take an active part in the meeting. The more we understand the cultural dimension, the greater our chance of hitting home with the message we want to give, on the level that the audience understands and feels comfortable with. When we get it right, we can build relationships and trust, and do business effectively.

Original Article at http://www.intercultural-training.co.uk/articles/general/presentation_skills.asp