You’ve probably heard of the term ‘title inflation’. Title inflation means the title shown on a person’s business card does not match his/her job responsibility, and the power that comes with it. In Asia you can easily come across people with the title “Project Manager” which is quite senior in Western countries (i.e. North America, Europe or Australia). They look so young that you can hardly believe that they have the experience required to be called a “Project Manager”. Well, a “Project Manager” title is in fact a junior title in Asia. People in the IT sector, after the first few years as “Programmer” and “System Analyst”, will be generously given the title “Project Manager”, even though in Western business community this title more likely carries more than 10 years of project experience with it.
Other examples of inflated titles include “Assistant Vice President” (this title contracts itself – how can one be both assistant and vice something?), “Vice President”, “Director”, “Managing Director”, and “Project Director”, especially in the banking and IT sector. I’ve once visited an investment bank for a presentation. When I entered the meeting room, a lady handed me her name card. Her title is “Director” which, accompanied with the Chinese translation (董事) led me to think that she is a very senior person within the bank. Then her boss came into the room and his title is “Managing Director”. I was confused. Then again the boss of this “Managing Director” came in and handed me his business card. He was an “Executive Director”. It is only then I understood this investment bank was quite generous with titles.
Another observation in Asia is people likes academic and professional titles too. Some people in Hong Kong have so many professional titles such as PMP, CPMC, CSOXP, CISA, CEng and so on, and they feel the need to show them all to the others. I've met a few people before and one side of their name cards just enlists all their 20+ titles – so pathetic. Needless to say they show all their academic titles such as PhD, DBA, MSc, MBA and even BSc as well. In US, Canada or Europe, I've never come across a name card that shows more than 2 titles, many cards show none - and they don't like to be addressed Dr. Bloke, just Joe.
In my opinion this only shows their lack of confidence on themselves that they need some grand titles to support them. My hypothesis is Asian (mainly Chinese) education system does not aim at building up students’ self-image and confidence. On top of that Asia is under the influence of Chinese culture which emphasizes on: Formal education with stringent structure; Conformance to collective behavior; Authority and obedience over individual differences; and tangible measurement of success such as high social status and material possession.
Next time when you are in China or Hong Kong, remember to address every manager as “zong” (总) which means general manager.
Let's conclude this series by sharing another project case study which encountered a major problem in China. The problem was eventually resolved by leveraging the team's strong knowledge in local culture.
Case 2: A US Company Procuring Telecommunication Bandwidth in China
A US Telecom was building a regional VPN network for an international client in the late nineties. The project was managed by a US and a Hong Kong project manager, with the support of local teams all across Asia. The network required local bandwidth in several Chinese cities. The international portion of the network was ready. The local project team went through normal application process and was told that the circuits would be ready in three months. One month later, bad news broke out. One of the local telecoms told the project team that due to demand upsurge, new cables needed to be installed requiring six more months of work. Circuits would only be available by then.
Analysis
The project team immediately assessed the situation. On the one hand they worked on a backup plan based on a redesign of the network, hence bypassing that Chinese city. On the other hand they tried to understand what indeed happened. The first question that came to the mind of the US and Hong Kong project manager: Was the local telecom trying to ask for something “funny”? However, the local Chinese team dismissed this possibility, and suggested that there might really be a bandwidth demand problem.
Solution
They then tried to work out a scheme to get the Chinese telecom to re-prioritize their request. They were aware of the face culture in China, and could not afford making the Chinese telecom people lose face, so a formal escalation was ruled out. As a US Telecom they were not an ingroup member, so could not get favor based on relationship though they did enjoy an excellent relationship with them. Since both the US Telecom and the international client were well known in China, they decided to play along that line. They invited senior managers from both companies to come to that Chinese city all the way from the US, and set up a special meeting with the local telecom. In the meeting, they emphasized the importance of this project to their business and to this Chinese city, and pleaded the local telecom to support them. After the meeting they went through the normal ritual, i.e. having dinner and Karaoke. Miracle did happen. Two weeks later, they were informed that the circuit would be available according to the original schedule.
Conclusion
Cultural diversity is an important factor to consider while delivering projects in Asia. When properly addressed, a project manager will be able to motivate the project team and avoid unnecessary conflicts. In general, a project manager in Asia should pay special attention to common traits such as face saving, avoidance of direct conflicts, indirectness of expression, and predominance of relationship. Subtleties like ingroup/outgroup, masculinity, power distance, and negotiation styles should also be observed.
References
Blake, T., Walker D., and Walker T. (1995). Doing Business Internationally: The Guide to Cross-Cultural Success. McGraw-Hill Professional Book Group.
Brahm J. Laurence (2003). When Yes Means No! – How to Negotiate a Deal in China. Tuttle Publishing.
Cauquelin J., Mayer-König B., & Lim, P (1998). Understanding Asian Values. In J. Cauquelin, P. Lim and B. Mayer-König (Eds), Asian Values: An Encounter with Diversity (pp. 1-19). Curson Press.
Ferraro, G. (1997). The Cultural Dimension of International Business. Prentice Hall.
Hofstede, G. (1980). Culture’s consequences. Beverly Hills, CA: Sage.
Hofstede, G. (1991). Cultures and organizations: Software of the mind. Loddon, Norfolk: McGraw-Hill Book Company (UK) Limited.
Peng Shiyong (2003). Culture and Conflict Management in Foreign-invested Enterprises in China – An Intercultural Communication Perspective, Peter Lang AG
KUNG HEI FAT CHOY! GONG XI FA CAI! The Chinese New Year is coming this week. Let me wish all of the readers a successful Year of the Ox!
Let's continue our discussion about cultural diversity in Asia using two cases of project delivery in East Asia. Both encountered issues originating from diverse cultures and business practices.
Case 1: A Hong Kong Company Delivering an Interior-Design Project in Korea
A Hong Kong-based interior design company was awarded a contract to renovate a building in Korea in the early 2000. Their client was a European embassy. This embassy did try to manage this project themselves, and appointed a project manager out of their home country. After a year they hardly got the project off the ground, and they came to this Hong Kong Company which had been their vendor in Asia for a long time.
The Hong Kong Company helped the embassy prepare a RFP, and chose a local Korean contractor as their prime through a proper tendering process. They were aware that there might be collusion problem among Korean bidders, but decided there was not much they could do about it. They hired a local Korean site supervisor on contract basis to supervise the project and the performance of the prime contractor.
After the project was half way complete, problems started to surface. There were instances that subcontractors refused to ship their deliverables because they had not been paid by the prime contractor, even though the Hong Kong Company had not failed to pay the prime according to contract. They also had some quality problem with the prime contractor. The local site supervisor was not effective, and seemed to be on the side of the prime contractor hiding problems from the Hong Kong Company. The project could not possibly meet its original schedule.
Analysis
This is an illustration of several cultural concepts we discussed earlier. Local Koreans belonged to an ingroup of the same nationality. A foreign company, even from Hong Kong which is part of East Asia, was seen as an outsider. When dispute came up, it was uncommon but not impossible that local parties colluded to protect their ingroup members. The local business practices were also an issue. Only locals who were familiar with the local environment could possibly minimize the negative impact from these practices.
Solution
They chose a project manager in Hong Kong and sent her to Korea on site for two months. She acted as a communicator between the clients and the prime contractor. She also monitored the performance of the contractor on behalf of her company. Performance started to improve and the project was finally completed to the satisfaction of the client, albeit late by around two months.
East Asians are more tolerant of ambiguity; sometimes even prefer to leave an issue unresolved in negotiations. They are also tough bargainers. Frontline negotiations are characterized by:
(1) it is usually a long process;
(2) it takes patience and skills to reconcile two languages into a contract;
(3) the concern about face. As East Asians are concerned about face, the principle-based negotiation strategy trying to achieve win-win for both parties may not always work, as face introduces an emotional factor and irrationality into the negotiation.
Negotiation in East Asia is not just limited to frontline formal settings. Relationship buildup through informal sessions such as karaoke, golf and dinner is of equal importance to the outcome of negotiations. Offline lobbying sometimes can get a negotiation out of an impasse.
Other Potential Issues
Payment Part of business culture in certain East Asian countries is to postpone payment to vendors. In Japan and Korea, there is no problem with payment. When a payment is due, it will be paid. In the Greater China region, however, this is a major headache for project managers. After a project has been completed, it may take a long time to receive all the due payments. A project manager may still need to work with the customer on payment issue even though the project has been officially closed.
Etiquette Although culture has many layers, the outermost layer, etiquette, can create a good or bad first impression. One has to carefully observe all etiquette on her first visit to a new city or country, to avoid creating a poor impression among the local stakeholders. For example, a Hong Kong project manager visiting Japan would try not to speak too loudly in public location such as restaurants or trains, and has to avoid using mobile phone in those places. On the other hand, a Japanese or Korean manager visiting Singapore need to be aware that it is a much less smoker-friendly country than their home country.
A project manager needs to deal with the issues of language and open communication while managing people in East Asia.
Language
Western and Asian project managers alike face the same problem of communicating in local language. Asia has more than 10 major languages, such as Mandarin Chinese (Putonghua), Cantonese Chinese, Japanese, Korean, Malay, Thai, and Vietnamese. There are also countless local dialects. Difficulty in communication with project team members or the customers in local language can impact the outcome of a project. For most business or IT projects, English can be used for team or customer communication though most Asians only possess limited English skills. When using English in Asia, it should be noted that:
• Most Asians’ reading and writing skills are much better than their listening and speaking skills; • People from different countries have strong accents of their own, and can be a hindrance; • Even people speak in English, the usage of words and expressions may carry the culture and patterns of their first languages.
Open Communication
In a project setting, open communication among stakeholders is important to the project’s success. The more candid are communication between all parties, the earlier problems can be identified and resolved, and a higher trust level and morale among all parties. However, this is not easily achievable in East Asia, particularly for projects that involve many parties. Sometimes the biggest challenge is to cultivate an open atmosphere within the project team. East Asians are generally shy and concerned about face, so they usually remain quiet in meetings. When they do speak, they sound humble and hesitant. If they have different opinions to their seniors, they do not speak out directly. Instead they only voice out their concerns in a very mild way, or simply keep to themselves. It’s quite common though they would speak out their concerns and disagreements in the most direct way during informal discussion with their colleagues, and complain about their managers not listening.
The only way to cultivate a candid and open communication environment is to build trust within the team, specifically between team members and the project manager. This requires the project manager to participate in team activities more frequently, adapt to local culture and customs, and encourage different opinions during meetings.
Motivators
To motivate a team in East Asia, the project manager needs to show a lot of respect to the local people, try to become a part of the ingroup, and cultivate an environment of trust and open communication. In general, East Asians are concerned about job security and monetary reward. They are willing to work long hours, and like to take up responsibility. Education and training can be a strong motivating factor for most people especially among younger members of the team.
More and more projects are being delivered in Asia, with a wide spectrum of project types including infrastructure, construction, IT, finance, product development and business process. Project managers share common cultural conflicts and issues when delivering projects in Asian countries irrespective of business sectors. Authority
Most Asians, in particular East and Southeast Asians are still receptive to dominant, dictatorial bosses, and authoritative figures. They expect their project managers to be decisive, firm, and assertive. The power distance is high compared to Western countries. European or US managers, though not considered ingroup by locals, have the advantages of being associated with the image of the successful developed world. However, one should carefully observe the indirect ways people express their discontent, and try to achieve a balance between authoritative and participative management style.
Conflict and Resolution
Conflicts are best resolved through smoothing and compromise. East Asians tend to avoid confrontation and relationship is the key to resolving conflicting situation. As Lao-tsu (600 B.C.) said, “Whatever is fluid, soft, and yielding will overcome whatever is rigid and hard.” It is advisable to adopt a soft approach to handle disagreement. Project managers should also note the following cultural traits in Asia.
Process and Methodology
The concept of shade combined with a strong sense of pragmatism has made East Asians (excluding Japanese and Korean) rather poor followers of process and procedure. They use their own judgment when asked to abide to certain processes and have a tendency to bypass processes or take shortcuts. This behavior pattern also diminishes their willingness to adhere to rules and regulations. Pragmatism is very deep-rooted in Chinese culture. A good example is Mr. Deng Xiao Ping, the chief architect of modern Chinese economic development. He made the famous comment “Regardless of white cat or black cat, the one who can catch mice is a good cat”. The legendary proverb of Ba Xian (Eight immortals) crossing a river using their own individual methods also illustrates the Chinese thinking of expedience.
Project managers in the Greater China region should pay particular attention to their team’s performance especially if following global processes or best practices is critical to the success of a project. For outside parties like vendors or sub-contractors, close monitoring and control needs to be exerted. It’s advisable to organize some training for local team members so that they fully understand the benefits of adhering to company process and methodology.
On the other hand, a project manager needs to be aware of how to get things done outside the organization. Formal process or procedures may not work even though they are official. A project manager has to work closely with the local team to understand leeway and flexibility of local procedures and rules.
Ingroup/Outgroup
As discussed above, East Asians have low trust level with people considered outside of their ingroup. Project manager, even a local, is usually considered an outgroup member because of their seniority level. A foreign project manager will definitely be considered an outgroup member by both the project team and the customer due to her nationality and ethnicity.
An outgroup person will receive far less information than an ingroup person because of lower trust. Their ideas and behaviors will be viewed with skepticism and distrust, hence making their project management task much more difficult. Conflicts can easily come up with outgoup people.
Metaphors and allegories are part of Chinese culture. In the past government officials used metaphors and allegories to drive home a different opinion to the King, lest they would offend him by being too direct. This tradition is still practiced today and can be observed in everyday conversation in East Asian societies. Underlings seldom express direct feeling such as anger or discontent in front of their boss. In business meetings and negotiations people seldom give a direct answer, and use different ‘yes’ expressions to mean ‘no’.
Other notable values and traits commonly found in East Asia include:
Respect for age and seniority – Grey hairs and senior managers are seen as wiser than the younger members, regardless of their formal positions.
Importance of education – Learning and education is seen as the best way to climb up the social ladder. The highly educated are well respected in the society.
Masculinity – Hofstede (1991) said “Masculity pertains to societies in which social gender roles are clearly distinct (i.e. men are supposed to be assertive, tough and focused on material success, whereas women are supposed to be more modest, tender and concerned with the quality of life).” This fits in quite nicely with the dominant trait in East Asian countries like Japan, Korea, Taiwan, Hong Kong, and China. Although social status of women has improved significantly over the past five decades, men are still seen as the decision maker and bread winner.
Financial prudence – East Asians tend to save a much higher proportion of their income for future use, and hence are more financially prudent when spending. This can be explained by a strong sense of insecurity. Owning more money is usually seen as a symbol of success. Job security and monetary reward can be powerful motivating tools.
Avoiding conflicts – Conflicts are usually seen as bad and should be avoided. Emphasis is put on maintaining a harmonious relationship among all people in the society.
Work ethics – Diligence is seen as a virtue and a justifiable price to pay for success. From their primary education to college, East Asians are educated to “give out their best”, meaning studying long hours for the best results they can get. In the workplace, workers are willing to work extremely long hours.
Personal Network (or alternatively known as guanxi in Chinese, ningen kankei in Japanese) is mentioned in many literatures. To get things done in East Asia, it’d be easier to utilize a personal network of family members, relatives, friends, business partners, and government officials. Although the effect of guanxi has been exaggerated to a certain extent, it is common experience of business people that getting support from a few key contacts or pushing certain “hot buttons” can greatly facilitate the resolution of difficult problems. Although in a sense this also happens in the West, people in US or Europe tend to observe and stick to procedures, formal processes, rules and regulations, whereas Asians in general are easily influenced by personal relationship.
The Concept of Shade
Yin-Yang is another essential concept in East Asia. Chinese traditional thinking emphasizes the importance of maintaining a harmonious state between yin and yang in almost everything, resulting in notions that pervade in all aspect of life – balance, harmony, equilibrium, and steadiness. The ideal state is not a state that goes to one extreme, but rather between extremes. It also leads to the concept of shade, an area between black and white, or yin and yang. It can even be both yin and yang. Chinese and Japanese can usually accept ambiguities in business, can go ahead with a business deal without contract, and try to resolve an issue from the perspective of balance and equilibrium. This also shows in daily conversation, as few Chinese or Japanese will say things too definitive.
Humbleness
Being perceived as modest and humble is a virtue in East Asia. People showing off their possessions, knowledge or achievement are usually seen by the others as arrogant, and therefore in negative light. A common mistake for Western managers in China or Japan is that they appear too dominating in meetings, or to put forth their objections too blatantly. East Asians tend to be very quiet in meetings partly due to their upbringing and partly to their acting humble. They want to appear as modest by not saying too much, and even if they have to raise different viewpoints they would use words very carefully and indirectly.
East Asian cultures are heavily shaped by traditions and thinking of Buddhism and Confucianism (whereas Central Asia is strongly influenced by Islam, South Asia by Islam and Hinduism, and Southeast Asia by Buddhism and Islam). (Cauquelin, Mayer-König & Lim, 1998) In East Asia the ideas of yin-yang, duty-based society, obedience to power, and personal network have been recurring themes. The followings are several cultural characteristics that appear consistently in most studies of East Asian cultures and values:
Face The concept of face (mianzi in Chinese) is very important in East Asia. Face is loosely associated with respect, but at a more superficial level. In most occasions, it’s critical not to make a person lose face in front of the others, regardless of the respect borne by the same group. To make a person lose face is equivalent to insult. This code of conduct can lead to phony behavior or sometimes extreme pretense. Foreign speakers in China or Japan have the following common experience. Accompanied by an interpreter, the speaker told a joke which received loud laughter and applause from the audience. Afterwards in a dinner, he was told by his local colleague that the interpreter did not actually translate his joke. Instead the interpreter told the audience that “the speaker just told a joke which I don’t think you’d find funny but please laugh anyway.” And the audience dutifully laughed and applauded. This is an example of saving face even for a guest people barely know.
We vs. They Mentality The concept of ‘we’ group (ingroup) in contrast to ‘they’ group (outgroup) was defined by Hofstede (1990). This is related to his individualism-collectivism construct. In general ‘we’ group is associated with collectivistic cultures. The ‘we’ group members in a narrow sense include family members and close friends and, in a broad sense people with a common race, religion, or political orientations. East Asians engage more easily in conflict with ‘they’ group members than with ‘we’ group members. In the business world, the mentality of they applies to people outside of one’s company or one’s industry, or foreign companies.
Kevin is the Founder and Principal Consultant of Knowledge Century Consulting. He is a frequent speaker in project management seminars, workshops and conferences in Asia.
Knowledge Century Consulting is a leading project management education and consulting serivce provider in Hong Kong.This blog serves as a communication platform between us and anyone who is interested in the discipline of project management. The copyright of all published materials under Blog Posts (excluding comments posted by viewers) remains the property of Knowledge Century Limited, Hong Kong.
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