People and business

In business, people have to deal in person with all kinds of people. People form an impression of you from the way you speak and behave- not just from the way you do your work. People in different countries have different ideas of what sounds friendly, polite or sincere - and of what sounds rude or unfriendly. Good manners in your culture may be considered bad manners in another. Your body language, gestures and expression may tell people more about you than the words you use. Companies that want to be successful in foreign markets have to be aware of the local cultural characteristics that affect the way business is done.

Managing a truly global multinational company would obviously be much simpler if it required only one set of corporate objectives, goals, policies, practices, products and services. But local differences often make this impossible. The conflict between globalization and localization has led to the invention of the word 'glocalization. On the one hand, the countries of North America and north-west Europe have relations largely based on analysis, rationality, logic and systems, and, on the other, the Latin cultures of southern Europe and South America consider personal relations, intuition, emotion and sensitivity to be of much greater importance.

When the European Community began to increase in size, several guidebooks appeared giving advice on international etiquette.

Businessmen have a lot to learn about how to behave with their foreign business friends.

For example:

• The British are happy to have a business lunch and discuss business matters with a drink during the meal; the Japanese prefer not to work while eating. Lunch is time to relax and get to know one so another, and they rarely drink at lunchtime.

•The Germans like to talk business before dinner; the French like to eat first and talk afterwards. They have to be well fed and watered before they discuss anything.

A successful business is based around products and brands, both of which are built by and for people. It is really pretty simple: you must understand people to design and brand a successful product. You must understand people to create a healthy organization that inspires loyalty and productivity. In order to create revenue you must understand people. In order to operate an effective organization with low costs you must understand people. People are the common denominator.

Understanding people better empowers us to improve our products. Concurrently, those insights help us build more powerful brands. In parallel, we understand our own employees better and adjust our organization to be more responsive to their needs and desires, which would increase both retention and productivity. It all enables the attraction of better employees.

Progressive companies already acknowledge and understand that people are the most critical component to business success. They are investing in a better understanding of the human domain.