Banter Without Borders

Cultural Upheaval: Will Canada be the New China?

“Oh, how things have changed.”  Thus began a recent Bloomberg Business Week podcast on China. The vexing question of whether to tackle the ins and outs of doing business in The Middle Kingdom started long before the recent and wrenching Google saga, but China's increase in power and, now, boldness on the world stage are more apparent than ever. Ongoing talk of Beijing’s ‘decoupling’ China and the U.S. is clear evidence of such a dramatic and unsettling development. For Western companies, red carpet treatment has now been replaced by red tape. The heady days of rushing to China and its untapped resources are over. Businesses are thinking far more carefully now, wary of the new and increasing risks of entering a market whose great wall of restrictions, regulations and requirements is steadily rising. As those of us who work with clients on improving their ‘intellectual capital’ vis-à-vis overseas business know, cultures and their values allegedly don’t change, yet even this holy grail of global coaching and consulting is thrown in doubt, with China’s apparent personality shift providing one huge exception to the cultural rulebook.  When it comes to China, myths and realities are on murky ground.

With China and even Asia no longer automatic destinations for companies in expansion modes, and with recession tightening everyone’s belts and changing thoughts of how to proceed with globalization, where are companies to go when seeking to expand beyond domestic markets?

One answer may well be Canada, which is looking like a really viable choice at the moment.  Many in retail would seem to agree, as a WSJ article* indicates. U.S. companies in the clothing industry, from J. Crew to the Limited to the Gap, are all taking the plunge into Canadian waters ever so carefully, and so far, so good [Interesting that Gap, which didn’t fare very well in its earlier overseas attempts in China and European markets and is now trying to set up an online presence there, is an enthusiastic participant in Canada].  There is no question that the Canadian market will present some very different challenges in terms of its market and culture – its higher end focus, emphasis on the outdoors, historically more discriminating and slower-moving consumer, not to mention the sizable number of cultural nuances overall. The time, though, seems just right, and the notion of expanding a business to Canada certainly carries much less psychological weight than is now the case with so many other destinations. I’m sure at least Google and GoDaddy would agree.

                                                                  

*http://tinyurl.com/yj2ysz2  

Driving Success in 2010: 3 Simple Rules of the Road

As those of us involved in coaching and consulting global executives well know, cultures are messy. Globalization, then, is anything but a tidy affair. A look at Google, Yahoo, Kraft, and now Toyota serve as suitable, if emotionally charged examples, of what can happen when cultures, national or organizational, encounter turbulence.   

It has always been true that simply taking a business, or portion thereof, and putting a global stamp on it through “opening a subsidiary in a far-flung place and hoping brand recognition and experience…will be enough,” is not advisable, as John Gapper points out in one of his recent articles in the FT*. The many missteps and dramas which seem to occur almost nonstop these days, often of soap-opera proportion, lead us to believe that companies need to do far more to ensure their overseas success.

Following are three things to keep in mind when taking a business to the global table, which in today’s market means, according to Mr. Gapper, entering the BRICs (or, if you subscribe to the view that Russia should be out and South Africa in, the ‘BASICs’!):

1. Cheaper is better: China has Haier, India has its Nano, and even non-BRIC Japan has jeans for under $10. Western companies need to let go of their focus on high end products and start looking at the other end of the price spectrum if they hope to remain  competitive for the long term. While quality still has its place, and while certain luxury brands continue to flourish, they are facing a questionable future, as emerging markets enter the picture and aim ever higher on the (24k) value chain. Ironically, though, Toyota may now be facing the dreaded consequences brought on when quality takes a back seat to the goal of reaching a larger market segment.

2. Know that in entering any emerging market, not understanding and appreciating the local conditions intimately puts you at a great disadvantage. This includes not only perceiving the nuances of local tastes -- and how many companies have suffered by missing even the smallest beat here, as Marks and Spencer learned in India the hard way ** -- but knowing how the local distribution systems and networks operate as well. Having an excellent product at the ideal price point is all for naught if it can’t make its way past the roadblocks into the marketplace.

3. Most of all, don’t underestimate the power of your competition. The BRICs are all working at a feverish pace, and now have so many companies coming forth as serious global contenders to be reckoned with. This trend shows every indication of continuing well into the future.

Western companies certainly need to wake up and smell the (Brazilian?) coffee, before all this new competition and lack of sufficient cultural business savvy à la 2010 leaves them in the dust.                                         

* http://www.ft.com/cms/s/0/b4bdfc22-062d-11df-8c97-00144feabdc0.html

**http://www.ft.com/cms/s/0/9d2bd1fe-05e9-11df-8c97-00144feabdc0.html

 

Technology, Globalization and China: Too Much, Too Soon?

There is no denying it: technology has made globalization possible. It has, in large measure, flattened the world and leveled the playing field, bringing cultures and countries together in ways we wouldn’t have thought possible, even twenty years ago. For tech geeks new and seasoned, this has been a blessing and a joy, with each new development bringing welcome challenges and opportunities. But, alas, new technological advances have always had their downsides as well, affecting not only basic skills and strengths but cultural constructs such as family structure and the social fabric as well. Way back in the 20th century, the invention of the TV caused worries about the loss of imagination and creativity, as people would, going forward, be fed visual images. The advent of the electronic calculator similarly caused concern that mathematical prowess would suffer, as simple operations would no longer need to be done in one’s head. More recently, as computers burst on the scene, and the rate of technological progress suddenly seemed to take off at unprecedented speed, the price has been paid, many would argue, in the communication sphere, as huge swaths of etiquette and social decency seem to have fallen by the wayside with each new upgrade, particularly where social media is concerned (And talk about infectious – even the players at Copenhagen have been dubbed “Facebook Bureaucrats”*).

What happens, though, when after years of government imposed deprivation, a country, never mind one of the world’s fastest growing superpowers, suddenly leapfrogs over the computer age’s early by-products  -- “instant messaging, video streaming, online gaming and interactive media,” to name a few -- and drops full throttle into the present, missing the decade where such developments transitioned naturally? According to a recent article in the Financial Times**, the consequences for China’s youth are dire for many, as internet addiction has recently surfaced as a serious social problem there (and in China, eroding values are already posing a cultural challenge to the centuries' old nation steeped in tradition). The notion of Chinese teenagers addicted to their computers isn’t exactly shocking, especially given the aura of forbidden territory resulting from so much policing of internet activity. Besides, as it’s the rare individual anywhere these days who is not helplessly hooked on one tech device or another, it’s a refrain we’re certainly used to hearing. In China’s case, though, it’s the degree and seriousness of this addiction which is troubling. The FT article cites a recent film which chronicles dozens of sobering cases of China’s wayward youth involving even murder, and “pinpoints the internet as the scourge leading kids astray and tearing families apart.”

In response, many of these teenagers are now being sent by their parents to bootcamps throughout China, of which there are currently over 300***; and with the country’s dubious track record where human rights are concerned, it is all the more worrisome to hear of the questionable conditions and “inhumane methods” under which these youth are weaned of their internet addictions. Since we’re dealing here with the future workforce of a country which perhaps holds more promise and potential than any other nation at the moment, this is not something to be taken lightly.  With China facing so many unique challenges as it moves up the global success ladder, and with technology sure to keep racing ahead, let’s hope that its youth’s internet addiction crisis recedes before too long. 

                                            
      

   *http://www.ft.com/cms/s/0/a9772ae6-e8d7-11de-a756-00144feab49a.html           

 **http://www.ft.com/cms/s/0/b0948580-e463-11de-a0ea-00144feab49a.html

***http://www.latimes.com/news/nationworld/nation/la-fg-china-beatings22-2009aug22,0,231246.story 

 

Globalization's Tribulations: Old (Cultural) Habits Die Hard

One of the consequences of the recent economic downturn is that more and more companies realize they can no longer continue to grow their businesses successfully on domestic turf alone. In writing of the Japanese pharmaceutical industry, a recent Financial Times* article states: “With diminishing prospects at home…companies have little option but to scour the globe for richer pickings.”  While I do find the notion of Japan manufacturing ‘fat-busting’ products for its rotund Western customers a bit tongue-in-(plump) cheek, it is nevertheless a compelling sign of this trend in action. Whether through shrinking populations, as in Japan’s case, or shrinking earnings figures and GDPs, companies from Bentonville to Bangalore are, more than ever, “[taking] the fight abroad.” For those of us in the global coaching and consulting industry, it signals cultural challenges and tough times ahead.

As businesses expand their operations through various means (M & A activity, joint ventures and the like), they must resist the temptation to fixate solely on the financial picture.  Although this seems obvious, the spate of recent articles on the lack of global mindset and proper attention to cultural context and human capital factors would have us believe otherwise.  In the Harvard Business Review*, Rosabeth Moss Kanter discusses successful mergers, and outlines the importance of attending to the cultural and emotional facets of a transaction in order to “create real value.” In her eyes, “a deal is never a bargain” when these all-important factors are shortchanged.

Similarly, the title of an editorial in last week’s Nikkei Weekly*, “What Good is Globalization without Global Perspectives?”, effectively describes the many frustrations of UK companies who have been operating in Japan, stymied in their attempts to reach across the cultural divide. It is a striking example of how, even when the aforementioned factors are taken into account, and even with thorough due diligence  – and who better for assiduous information gathering than the Japanese – putting globalization into practice is far easier said than done. Old cultural habits die hard.

From the unfolding Kraft and Cadbury drama, where the merging of two major US and UK business cultures is at stake, to the countless discussions as to whether the cultural differences of East and West Germany have been reconciled successfully since the fall of the Berlin Wall, signs of the difficulty in managing cultural interactions are nearly impossible to ignore. With the world’s economic future still uncertain, and companies ramping up their overseas efforts, we can at least be sure of plenty of intercultural activity on the horizon.

* http://www.ft.com/cms/s/0/72688fb8-c9ab-11de-a071-00144feabdc0.html  

* http://hbr.harvardbusiness.org/2009/10/mergers-that-stick/ar/1

* http://www.nni.nikkei.co.jp/e/cf/fr/tnw/weekly_index.cfm?Keisai_dt=20091026

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

Cupcakes and Cashmere: Stalking Cultural Preferences

Whether it’s cupcakes in Doha or sushi in Warsaw, following cultural trends and ever-evolving cultural preferences will forever be one of my favorite pastimes.  Such inclinations are of interest as reflections of their surroundings, economic and otherwise. Although not ‘big ticket’ items, the sudden appearance of cupcakes in the Middle East, sushi in Eastern Europe and fine chocolates in China are new tokens of luxury in select burgeoning economies and segments thereof.  What is of greater significance to me, though, is what has happened to the luxury market in Japan, and how this has affected both consumer thinking and its cultural manifestations.

 Much has been written about changing consumer spending habits in Japan (see Carrefour post below), as the country’s collective belt has been tightening for a considerable period of time.  The early proliferation of ¥100 stores in the post-bubble 1990s was perhaps an early indicator of an emerging trend in shopping, which until then had generally eschewed bargain hunting as a cultural sport.  Now, such shops with names like Seria, Watts and Don Quixote are as ubiquitous in Tokyo as tea vendors, and cheap chic is now not only acceptable, it’s downright trendy.  The country’s ailing luxury sector, meanwhile, has been steadily eroding, evidenced by plummeting department store sales, and punctuated by Versace’s complete withdrawal from the Japan market last week.

This is all music to the ears of companies like Fast Retailing (of Uniqlo fame), H & M, and Forever 21.  They, like many others, have been ‘recession ready,’ and are now all battling for supremacy on Japan’s legendary fashion battleground, with jeans at $10.00 and cashmere sweaters of decent quality at eye-popping prices. For even as the country’s luxury market suffers, and one can conjure up a picture of austerity and restraint in a culture known for embracing stability and resisting change, Japan is at the same time one of the most cutting edge trend-driven places on earth. Thus, its new economic realities have simply presented new challenges for its trendmeisters, whether in food, fashion or tech devices and beyond.

As buying on the cheap continues to evolve from ‘hazukashii’ (embarrassing) to virtuous and even cool, it will be exciting to monitor the manifestations of this cultural trend in Japan, along with others across the globe. Now if only flying to foreign cultures were as inexpensive as those Uniqlo jeans………

Kraft and Cadbury: Cultural Meltdown or Company Showdown?

Reading all the recent banter about Kraft and Cadbury not only unleashes my undying sweet tooth, it also gets my cultural molecules spinning. This potential acquisition, written about almost daily in the past few weeks, involves far more than simply the wisdom of connecting two companies. For one thing, on a personal level, it arouses passionate debate by virtue of its connection to chocolate, that addicting and magical substance which has captivated us for centuries. Taste, so much a part of our emotional and cultural DNA profile, is significantly shaped by our surroundings, as any global marketing team will attest. Nations do, in fact, have their own very distinct chocolate preferences, some of them surprising.  Judging from all the ruminations on the hugely nostalgic powers of Cadbury, and the attendant bashing of Hershey's, the brand Cadbury aficionados love to hate, the U.S. and U.K., never mind Kraft and Cadbury, could probably go to battle on this culturally sensitive matter alone.

Indeed, cultural preferences are at stake here, but so are corporate culture differences. How ironic, then, that Cadbury is now headed by Todd Stitzer, a "preppy New York lawyer,"* in the words of a Financial Times writer. Nevertheless, its company culture continues to run deep, and like so many organizations who entered early in the chocolate industry -- Fry's, Rowntree, and Hershey's as prominent examples -- its roots were philanthropic, perhaps further feeding into the nostalgia factor. Kraft, meanwhile, whose "tanks rolled on to Cadbury's well-tended Bournville lawns,"* is viewed as the U.S. behemoth ready to devour Cadbury's, despite recent rebranding efforts and cries to the contrary. There is a bright spot, though, and again, an ironic twist. Under Stitzer's reign, with one of the company's factories in Keynsham, England, about to shut down and move to Poland, and with Kraft promising to keep it open if the acquisition materializes, there are some in the U.K. now hoping the "white knight" from across the pond will in fact prevail.*

With rumors swirling about almost daily as to new tactics, potential suitors and sweeter offers, this emotionally and culturally infused topic will be one to watch closely -- perhaps with some "neutral" Swiss chocolate in hand.

*http://online.wsj.com/article/SB125245727048594365.html

*http://www.ft.com/cms/s/3/756b0108-a752-11de-9467-00144feabdc0.html

*http://www.ft.com/cms/s/0/2554c0f2-a322-11de-ba74-00144feabdc0.html?nclick_check=1

 

 

Japan's Election: Ties to Culture -- and Aliens?

There is nothing like a national election for a close-up view into a culture's soul. Whether in the business of global coaching and consulting or intercultural talent development, where obvious links are apparent, or in areas where such connections are more subtle, elections re-align and refresh our focus as we examine the way a country operates both domestically and with the world at large. Japan's recent election of its new prime minister, Yukio Hatoyama, provides such an opportunity.

1.The Land of the Rising Sun is famous for its risk aversion and reluctance to change. Thus, the significance of selecting a prime minister from a party other than the decades-old incumbent LDP, not to mention a prime minister nicknamed 'the alien,' might seem groundbreaking. On second glance, when learning of his rather non-traditional marriage to an eccentric wife -- an actress and 'alien' in her own right, who "travelled to Venus in a U.F.O. in the 70's"* and had a mental rendez-vous with a Japanese Tom Cruise (!) in a former life -- this event borders on the downright bizarre. Upon a closer look, though, this all falls very much within the Japanese cultural fold. For one thing, as the grandson of a former prime minister and former LDP member, Hatoyama isn't exactly a renegade. [In a recent Reuters blog post, in fact, a photographer laments Hatoyama's utter lack of flair and charisma, significant in a country where public persona is everything*.] As for his wife, her non-conventional behavior and peculiarities highlight a distinction in Japanese culture. While change itself may not be embraced as quickly as in the U.S., for example, eccentricity is tolerated and is not unusual at all. As a New York Times blog states: "Ms. Hatoyama, 'a musical actress, cookery writer, clothesmaker and television personality,' is given a sort of free pass by Japanese voters because she falls into the category of public figure known as ‘tarento,’ or ‘talent,' who are expected to be kooky."

2. The huge growth of Japan's 'silver haired' population in proportion to its younger citizens has now put a distinctive stamp on its culture. Changes in the country's workforce dynamics, with possible diversity-related implications for the future, and shifts in family structures, with the growth of '3G' family living arrangements, are but two examples. There is no denying that this past election was very much about Japan's seniors flexing their political muscles.  As Michael Zielenziger points out in the Nikkei Weekly, Hatoyama's campaign was targeted to older voters, who cast far more votes than their 20-something counterparts in this and previous elections. This lies in direct contrast to the Obama campaign's aggressive marketing to America's youth vote. Through adroitly using Japan's election as an effective primer for those who wish to penetrate the country's market, Zielenziger advises companies to keep Japan's demographics in mind, for "as Japan rapidly ages, the elderly have the disposable income, the political power and stay longer on the job.*" Global marketing teams: take heed.

3. The all-important issue of relationships and their carefully cultivated networks, so much a part of Japan's cultural fabric, certainly played a key role in Hatoyama's triumph. [How else to explain this historic victory with such a lackluster public figure?] It would be nearly impossible to imagine anyone from the outside coming in and breaking through this tightly knit circle of networks and into the political arena, no matter how powerful his or her platform. This all-pervasive aspect of conducting any sort of business in Japan, political and otherwise, is not about to change any time soon. The primacy of "relationships over ideas," also mentioned in the Nikkei Weekly article, is often hard for foreigners to accept, and the cogent example is given of attempting to enter the Japanese market with a "hit product," only to be stymied by the country's impenetrable barrier of age-old distribution networks and accompanying reluctance to "disrupt the traditional order."

With so much attention now focused on Japan in its post-election phase, questions surrounding its relationship with its Asian neighbors, China in particular, with the U.S., and with the world in general, will continue to be on our minds. How the country's culture figures into the answers, and how business will in turn be impacted, will be surely interesting to watch.

                                                      

                                                    

*http://blogs.reuters.com/japan/2009/09/08/farewell-to-photogenic-aso/

*http://thelede.blogs.nytimes.com/2009/09/03/japans-new-first-lady-not-from-venus-was-only-visiting/

*http://www.nni.nikkei.co.jp/e/fr/tnw/

Global Marketing Challenges: Carrefour's Turn

In his posting on the many cultural challenges of global marketing teams, as well as international organizations in general, Jack Brown discusses Wal-Mart's rocky path to worldwide success. He attributes this in large part to the careful attention it is now paying to local markets on a deep level after years of what he rightfully terms 'missteps.' Companies are increasingly finding that a superficial nod to local practices and preferences is not nearly enough. Rather, understanding the most fundamental cultural tenets, ethics and principles of one's customers is what will bring success for the long term, avoiding costly gaffes and  errors along the way. In its rush to bulldoze into emerging markets, Wal-Mart certainly learned this the hard -- and some would argue the American -- way.

Now, it seems that Carrefour, second in command in the retail market, is also having to pull back and consider culture as it re-examines its image and business model. This time, though, it is not the buying habits and idiosyncrasies of foreign cultures but rather its own French terrain under scrutiny. With 43% of Carrefour's market on domestic soil*, and nearly a million customers in Carrefour hypermarkets daily*, this seems imperative in light of the company's marked drop in earnings and gloomy forecast ahead. Its perception as a premium retailer is now being re-examined, along with the image and function of French hypermarkets themselves. Its new CEO (not French but Swedish, interesting in itself) is said to be focusing much more on discounted prices, in-store and outside promotions, private label products and loyalty cards, in very much the same way as Tesco, its longtime rival, has done with considerable success.

This re-examination of 'premiumization' is not limited to the hypermarket sector alone. L'Oréal and Diageo have both been in the news lately with reports of disappointing earnings and resulting strategies to, like Carrefour, manage the fallout from the current economic downturn through new price point considerations and possible re-branding. Similarly, on a national level, Japan has, in response to economic hard times, been experiencing a seismic shift in consumer habits, away from its legendary emphasis on quality with more focus now on price and value. This surely poses a major threat to brand loyalty, if not to global business overall. Wal-Mart has, to its credit and following countless blunders, continued to rise to the challenges of today's uncertain economy. Whether Carrefour and other global giants will be able to do the same remains a formidable question.

                                      

*Wall Street Journal, August 29 - 30, 2009: "Carrefour Posts Loss on Discounting" 

*http://www.ft.com/cms/s/0/6390eb24-9432-11de- 9c57-00144feabdc0.html   

Japan and India: Diving Deeper into Global Waters

In my previous post, I reviewed two illuminating and complementary podcasts on outsourcing and its application in today’s global marketplace. In the discussion of multisourcing and its attendant complexity of managing multiple providers, the cultural considerations were what resonated for me. When an overlay of country culture is added to the already complicated challenge of managing corporate cultural differences in an outsourcing agreement, the challenge is manifold, even if only two nations are involved.

As with any intercultural transaction, broad questions of communication arise early on: Are the cultures at hand relationship-based or transactional?  Is overall communication style direct or indirect? How does ‘saving face’ figure into the picture, if at all?  What is the role of and protocol surrounding small talk?  Taboos?  Humor?  How is silence used and interpreted?  What is the time frame for establishing relationships?  In the business sphere, additional issues as risk tolerance, leadership preferences, entertainment protocol, perceptions of time, decision making processes and, perhaps most importantly, issues of trust are but a smattering of crucial pieces one would need to assess and address.

Such questions and issues will now be increasingly on the minds of Japanese and Indian companies, as the two nations have begun collaborating in more and more outsourcing arrangements, according to a recent Wall Street Journal article (“India’s Outsourcing Firms Lure More Japan Business”).   As a global coach and consultant, I am naturally delighted to see this, since while the two countries are markedly different culturally, on the business front this seems like a match made in heaven, with timing auspicious for both nations.  The Japanese population is ageing steadily, causing gaps in the workforce (particularly in engineering, as the article states). Indian companies, meanwhile, have been feeling the pinch from the U.S. financial sector and have been busily strategizing in hopes of entering new markets.

That said, Japan and India are entirely at odds in their respective cultural orientations. While Japan is extremely homogeneous and in many ways isolationist, India is one of the most diverse mosaics on the planet, and from this basic difference springs a whole host of cultural contrasts. In short, though, where the current outsourcing development is concerned, there are two critical issues at hand for each country. For Japan, the huge question of trust will undoubtedly be its biggest obstacle. Japanese companies have, through the ages, been notoriously tight lipped when dealing with “gaijin” (literally “outside persons”), and, as the article states, very reluctant to entrust segments of their business to others.  For India, used to the efficiency and speed so deeply embedded in the U.S. business culture, the challenge of balancing this with the perfection and assiduous attention to detail demanded of the Japanese market will surely be its albatross.

Fortunately, both countries seem to be undergoing the coaching and training so necessary in these situations.  The reciprocal nature of such programs, as indicated in the article, with both countries sending participants to their respective new partners’ locations and engaging in multifaceted intercultural talent development practices, is a formula for a successful collaboration. It is a sure bet that if the current alliances are successful, both countries will actively continue down this newly paved path.