Banter Without Borders

5 Tips for Succeeding in the Canadian Marketplace

 “We are not Americans..We are citizens of a distinct sovereign state."*

According to the Wall Street Journal, American retailers are expanding into Canada, already the USA’s largest trading partner. While Canada is a much safer market than Asian countries, there are still many issues that can undermine the success of any American company moving north.  

1. Distinct Market:

Canada must be treated as a distinct market. Canadians have a strong, albeit understated, sense of national pride that is often defined as being ‘not American’ despite the strong north-south (Canada-USA) pull throughout the country because areas of Canada often have a closer proximity to and more in common with their American neighbors than with another Canadian city thousands of miles away. Canadians are concerned about the loss of their culture and tradition by intrusion of American economic and cultural influences. Any company entering the Canadian market should emphasize Canadian content and other Canadian elements of their products or services to demonstrate respect for Canadian consumers. 

2. Segmented Market:

Canada is the world’s second-largest country; it cannot be treated like one unified market for product or for promotion and advertising. Regionalism continues to be an issue in Canada. Canadians have great pride in their individual provinces and their differing lifestyles. Companies that treat the French-Canadian and the English-Canadian markets as 2 separate markets are usually the most successful. When marketing to French-Canadians (25% of the Canadian market), all promotional materials must be available in French. And, even within the English-Canadian market, there are differences in lifestyle among the Maritime provinces, Ontario and the Western provinces to be considered. 

3. Social/Environmental Issues:

Environmental issues (acid rain, ‘reduce, reuse, recycle’) and social issues (women’s rights, pay equity, minority rights and job security) are very important to most Canadians. This should be reflected in a company’s product, packaging, marketing and human resources practices. 

4. Packaging:

Canadian packaging should be eco-friendly, bi-lingual and ‘Canadianized’. Forms and warranties should refer to ‘Province’ rather than ‘State’ ‘and postal code’ rather than ‘zip code’. While Canadians show a preference for American terminology, Canadian spelling follows British guidelines, and any copy should be rewritten accordingly. By law, Canadian packaging must be bilingual. Keep in mind that direct translations from the English are seldom successful and that French copy is on average 20% longer than the English copy. 

5. Marketing:

Canadians are conservative, reserved, cautious and yet open-minded. Avoid marketing hype and stick to the facts; Canadians expect to hear the truth. Free samples are more effective than direct mail in winning over the Canadian consumer.

*(Robert Johnstone, former Canadian Deputy Minister of International Trade)

Global Relocation: Executive Challenges

Contrary to Thomas Friedman's mantra of yore, the world is not flat. In fact, as the Financial Times commented in an August 28th editorial entitled “Rough and Smooth,”* “reality is more messy. Recent history is littered with tales of CEOs from one culture who, for whatever reason, have not stayed the course when put in charge of a company with deep roots in another.” Stuart Chambers aptly phrased it when he resigned as head of Nippon Glass: “I have learned I am not Japanese.”  

What executives must grasp is that the behaviors and attitudes that got them to the top in one culture would not necessarily translate when they assumed control of a company in another country. Culture does matter, and on several levels. For executives to succeed in crossing cultures, they must realize that the greatest attribute they bring to the table is not their previous successes or reputation; in fact, these can hinder their effectiveness in a new market. Their greatest strength in moving to a company in a different country is their ability to be nimble and adaptible, open to events as they unfold. As the Financial Times article concludes, “…there is no template for how to run an Asian business – or, for that matter, a British, French, or Russian one. Running any business requires political savvy and managerial flexibility, going outside one’s comfort zone simply requires a double dose. Different business cultures are there to be navigated, not flattened into mush.”

Every culture has its own set of values that govern not only management styles, but all aspects of business, from advertising & marketing to sales to R&D. And, the range of stakeholders, their attitudes and their issues may be quite different from anything the executive had previously encountered. Laws and regulations, investor relations, unions, employee behaviors, and corporate structures are seldom identical from one culture to another, and they seldom exhibit any degree of flexibility in the short term. So, it falls to the executive to be able to adapt to a very different environment if he or she hopes to achieve any degree of success in a foreign company.

Often, however, it is not the above-mentioned workplace related challenges, but the family issues that force an executive either to refuse a lucrative overseas position or to abort it. Family relocation issues can, for example, undermine the effectiveness of an executive when his loyalties and time are split between his family in one country and the company in another. The Japanese media often attacks Sir Howard Stringer for not spending enough time in Sony’s head office. Indeed, the importance of the family's success in managing the overseas move was given top billing in a recent Harvard Business Review* article on the subject. Simply put, "You can't be successful in your new role if your home life is in chaos." So obvious, yet so often overlooked.

Corporate boards of directors are surprised again and again by the failure of CEOs who have not succeeded in running a foreign corporation. The onus is on them, the board members, to be diligent in their search for the right executive, one who has not only the name recognition (the “his PR precedes him” syndrome) or the technical skills, but also an attitude of openness and flexibility, a satisfactory family situation, and a willingness to learn about new cultures. While that may seem an overwhelming task for a board, the consequences of not doing the requisite due diligence in their search can be even more daunting. However, finding the right executive for the right job with the right skills for a particular company and culture can send the company to new levels of success.

*http://www.ft.com/cms/s/0/673ce6aa-9406-11de-9c57-00144feabdc0.html

*http://hbr.harvardbusiness.org/2009/10/three-keys-to-getting-an-overseas-assignment-right/ar/1

Non-Verbal Communications Are Not Universal

Dollar Is Down, Exports Are Up: Cultural Considerations of Exporting

Global meetings: The show business of business

Lois Wyse once wrote that meetings are the show business of business. Two words that seem almost contradictory, but such an apt description of meetings in the USA. Show...well, you show up and on time. And, you have something to "show" or present that contributes to the business at hand. Business...that's what meetings are about, not socializing nor relationship building. So, only the people relevant to the business should attend, and the focus is on moving the business forward. If only meetings did run that smoothly and simply all the time! Compared to other countries, they do though.

So, it was interesting to read Andrew Jack's column "Expenses culture has high cost for world's poorest nations" (http://www.ft.com/cms/s/0/832f89ea-7c4f-11de-a7bf-00144feabdc0.html) describing meetings in Dar Es Salaam Tanzania as "a form of institutionalised, legal time-wasting that is endemic in the region...at its root is the culture of the "per diem" the daily payment made to officials attending meetings and conferences". Consequently, officials are seldom available and business grinds to a standstill because they are off collecting a "per diem" to subsidize their income. And, this problem is not specific to Tanzania, as Mr. Jack points out. It is wide-spread in Africa.

It's hard enough for expats living in another country; with time and cultural coaching, they eventually get the lay of the land and learn what they have to do to get where they need to go. Woe, though, to the poor hi-po sent on business meetings to far-flung corners of the world. Without adequate cultural briefings, how can he or she be expected to understand the protocols of meetings in other countries, whether it is the ‘schmoozing' and socializing that is necessary before getting down to business, dealing with the hierarchy of the foreign counterparts, constant interruptions and lack of privacy when meeting, varying presentation styles, the nuances of negotiating and signing contracts, or even something as simple as where to sit?

Every culture has different protocols and values regarding business meetings. Not knowing what to do is no excuse, especially when that hi-po, or even the expat, returns with a wad of expenses without the business and no understanding of what went wrong. If a company expects to succeed globally and get valuable business, it must provide the necessary training and coaching resources for its representatives to represent the company effectively.

Protocol fosters international relationships

Mind your manners and make millions...so reads the headline of Stefan Stern's review (http://www.ft.com/cms/s/0/5300a858-7c9f-11de-a7bf-00144feabdc0.html) of a new book, The Cost of Bad Behaviour, by Christine Pearson and Christine Porath. Having spent many years teaching executives how to mind their manners (http://www.etiquetteinternational.com/), especially if they go abroad, I can attest to the veracity of the authors' message. Companies can lose millions in revenue because of the behavior of their executives and representatives.

Good manners lubricate relationships whereas bad manners can lead to client attrition, bad press and investor revolt, not to mention a toxic workplace. A few sniping cliques or an arrogant manager will result in staff ineffectiveness and high turnover. There's an old saying that employees join companies and leave managers. It should be obvious, then, that management training with 360 assessments, especially in the area of Emotional Intelligence, should be compulsory. However, too many companies are penny wise and pound foolish when it comes to addressing these ‘soft skills', especially in this economy. When times are tough, relationships can be a deciding factor in a company's success or failure. 

Global coaches and consultants are acutely aware of the value of good manners in fostering international business relationships. Yet companies still send managers abroad as a way to remove them from a toxic situation in the home office. Adding the cultural component to an already toxic manager is a sure-fire speedway to failure. Relationships in business are crucial overseas where an executive can be judged harshly on his appearance, attitude and actions, and that can undermine the trust necessary to build successful relationships.

Before an executive goes abroad, extensive efforts should be made to ascertain that he or she is the right person for both the job and the culture. That person should be given all the support needed to help make the cultural transition. Why is this so important? Simple. A company won't lose just one or two clients or employees, it will ruin its reputation permanently in that market. All the time, effort and money that had gone into opening the market will be lost.

Unfortunately, as Stern writes in his review, "the book is a bit short on what the victims of unpleasantness should do about it." Etiquette writers are very good at telling you how to act properly; they seldom teach you how to react properly when you have been treated badly. Role-playing serves in this scenario to both to forestall negative situations and to correct them, and is an integral part of the learning process. When simultaneously combined with ongoing coaching efforts, the client making the necessary changes is supported overall. To dismiss either the coaching or the training component, especially where cross-cultural challenges are involved, is to increase the likelihood of incurring the "Cost(s) of Bad Behaviour."

The international business risks of European immigration

As someone who has been described as a serial immigrant, I read with interest the glowing reviews of Christopher Caldwell's book "Reflections on the Revolution in Europe," by Dwight Garner in The New York Times (http://www.nytimes.com/2009/07/30/books/30garner.html?_r=1&scp=4&sq=Christopher%20Caldwell&st=cse) and by Fouad Ajami in The New York Times Book Review (http://www.nytimes.com/2009/08/02/books/review/Ajami-t.html?scp=3&sq=Christopher%20Caldwell&st=cse). Ajami writes that Caldwell "gives this subject its most sustained and thoughtful treatment to date."

When we were working with a European client last year on issues of risk in their global marketing and advertising, one of the issues that arose was immigration and the way it was changing their marketplace. For most European countries, immigration is an economic necessity because of the aging and dwindling local population. However, immigration brings many challenges, especially to the established, socially liberal cultures.

Legal and illegal immigration has given rise to social, cultural and economic tensions in many western European countries. While immigrants can add cultural value and intellectual property to their newly adopted country, more often they are feared. Many reasons are given to spur anti-immigrant feelings; they take jobs from local workers and lower salaries, they overflow schools and hospitals, they cause disease, and they increase the social welfare costs. They also may be a source of crime and terrorism.

Immigrant populations in Europe from Africa and the Middle East tend to be poorer and not well-educated. The majority of these immigrants are Muslim. They are socially and economically marginalized, religious and tend to live in parallel societies rather than assimilate, as immigrants are more likely to do with the American-style melting pot or even with the Canadian-style ethnic mosaic, possibly because both North and South America have benefitted from immigration for centuries, whereas immigration is a fairly recent phenomenon in Europe.

Few immigrants in Europe enhance their adopted culture; most supplant it. Consequently, many Europeans feel threatened by newcomers who will dilute their culture, undermine their traditional values and cause them to lose their national identities. As a result, according to a poll by the Pew Research Center, large majorities in nearly every European country surveyed express the view that there should be greater restriction of immigration and tighter control of their country's borders. Unfortunately, debate about immigration is taboo in Europe since anyone there who is even remotely critical of Islam is branded as Islamophobic, as Caldwell points out in his book. That is a shame because immigration and immigration reform are topics that should be discussed openly.

The immigrant experience can be jarring, whether it is a temporary expat assignment or whether it is a permanent relocation. Having lived in several countries and having dealt with numerous expatriates, I have come to realize that there are some basic rules that can enhance the immigrant experience. First of all, it helps to make even some effort to learn the language; language does help to understand a culture. And, while it may feel safer to cling to the known, it does help, too, to become an active participant in your new home and culture; it will open new worlds to you. If you prefer to live in an enclave of fellow expatriates, perhaps you should consider repatriating, especially if you constantly continue to refer to the country of your birth as "my country." If that's where your allegiance is, that's where you belong. Equally appalling are people who become more native than the natives; you're insulting both your hosts and your heritage.

My copy of Caldwell's book is on order. I look forward to commenting further once I've read it. Meanwhile, it sounds like a worthwhile read for any executive whose company is doing business in Europe and for whom immigration might be a human resources or a marketing issue.