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Steve McLaughlin

Steve McLaughlin
featured author

Occupation:
CEO, Global Market Insights

Profile:
Steve McLaughlin is founder and CEO of Global Market Insights (GMI) and a graduate of Rice University where he was student body president, and completed post-graduate studies in International Economics at the Universidad Mayor, Santiago, Chile. He is available for consultation and can be contacted directly by Email: smclaughlin@gmi.lu or Phone: 352-26364921. Additional information is located on his website: http://www.gmi.lu

Location:
Berwyn, PA, USA

Website:
Global Market Insights

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We're not in Kansas Anymore: Business Customs in Europe
by Steve McLaughlin RSS Steve McLaughlin



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Think back to the last time you had a business meeting with someone you had never met before who worked for a company you wanted to do business with. The first thing you probably did was extend your hand and introduce yourself. If the other person's name was Lisa Jones, you said: "Thank you for seeing me, Lisa." You then probably had a seat, and got down to business. You were also probably dealing with another American - and so the above mentioned customs were mutually shared and accepted and the meeting proceeded along its natural course. If this meeting had taken place in France, however, things might not have gone so well as in the French business world, the use of a first name is considered rude and forward until one has been invited to use it. In Germany, it would have been considered rude for you to extend your hand until Lisa had offered you hers first. In Denmark, you would have been considered too aggressive by getting right down to business, as Danes prefer fifteen or twenty minutes of polite small talk before actually starting a meeting.

The last ten years have seen many changes in American corporate culture and customs. Three piece or tailored suits have been replaced with business casual attire in many companies. Teleconferencing and video conferencing have cut down on the number of business trips and face-to-face meetings many of us need to have. The speed and informality of email has made abbreviations and incorrect grammar widely accepted where they never would have been in standard business correspondence, and notebooks, cell phones, and PDAs have given American business people the ability to conduct business any time, anywhere. The current American business culture is vibrant, aggressive and unique in the global economy.

Unfortunately, Americans looking to do business in Europe often forget just how unique it is. The above mentioned mistakes in business etiquette, while certainly minor, do leave an impression - and not the one you want. In the increasingly competitive arena of international business, understanding the various business customs and differences in etiquette is a crucial component in getting you that all important edge over your competitors.

While every European nation has its own minor individual customs and protocols when it comes to conducting business, there are a few general things that you should keep in mind when doing business in Europe.

* Face to Face vs. Teleconferencing: While billions of dollars worth of business is transacted in the United States every day without the principles ever actually meeting each other, this is not often the case when doing business with European firms. Getting to know the people they are doing business with by meeting them face to face is in many European cultures, almost as important as the actual deal being offered. Fax, email and even telephone communications are an excellent way to start setting things up, but it is doubtful that you will be closing the deal with a firm in Romania or Greece without meeting the other principals face-to-face, and gaining their trust. If you are planning on successfully negotiating a contract in Europe, be prepared to travel!

* Attire: The theory behind the wide adoption of "business casual" dress in American companies is that the more comfortable a worker is, the more productive that worker will tend to be. While this may or may not be true, the increasing lack of formality required in the American workplace is not a trend that is shared by most European companies. With only a few exceptions, business attire tends to be far more formal and conservative than what is considered acceptable in the United States. European business people are very conscious of personal appearance, and will form a large part of their first impression of you based on how you are dressed. In Germany, for example, arriving to a meeting in business casual attire might actually be taken as an insult by your host, who will be dressed fashionably and conservatively. Tailored suits (usually dark) and ties for men and conservative, stylish dress or pantsuits for women are the recommended uniform of the day when doing business in Europe. In Paris, women can even be seen wearing hats.

* The Tone of the Meeting: Ask busy US executives what they need more of and well over 90% of them are likely to answer: "Time!" We are busy people, and often find ourselves without enough hours in the day. Because of the shared business culture in America, when meeting with other US executives "How was your flight?" or "Which hotel are you staying at?" is often the extent of the conversation before getting down to business. This is not the case in most European business cultures. Small talk - getting to know a bit about you and telling you a bit about them - is an important component of any meeting with most European executives, as it is seen as both polite and necessary in the building of a trusting relationship. Jumping right into the nuts and bolts of the deal is considered rude in most European business cultures. While the amount of time required for this will vary based both on the county and the individual preference of the executive(s) you are meeting with, you should plan on spending somewhere between fifteen and thirty minutes on this necessary preamble to actually getting down to business.

Today, with the fall of communism and the increased cooperation between the member nations in the European Union, the European market place is one of the most attractive in the global economy. Once the exclusive province of the mega and multinational corporations, today many mid-size and even small US companies are turning to the burgeoning European economy and its vibrant customer base to expand their markets and increase their profits. But it is not enough to want to do business with Europeans - they need to want to do business with you. By understanding and conforming to the customs that have grown up around their business culture, you give yourself a competitive edge over those who approach them the same as they would approach a business located in another State.

During my many years advising companies on how to transact business profitably in Europe, one of the things I have always stressed is that they pay attention to the details. Business customs there - as here in the US - have evolved along with and due to the evolution of the nations themselves. By making that extra effort to learn their customs, you show respect not only for them, but for their cultures. And respect is necessary for any successful relationship!

Author Bio: Steve McLaughlin founded Global Market Insights, with offices in Europe and the U.S., with his vision of giving clients two synergistic competencies: knowledge of the global marketplace and industry expertise in manufacturing, finance and information technology. Steve has over twelve years of international experience in three continents, having started in executive search as a Beckett-Rogers Associate. Steve is a graduate of Rice University, where he was student body president, and completed post-graduate studies in International Economics at the Universidad Mayor, Santiago, Chile. He is available for consultation and can be contacted directly by Email: smclaughlin@gmi.lu or Phone: 352-26364921. Additional information is located on his website: http://www.gmi.lu

Internal Tags: International Business, International Business Articles

Technorati tags: International Business

Steve McLaughlin, Berwyn, PA, USA - July 7th, 2006
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