In this blog, let me say more about how a business diplomacy strategy can help your business develop overseas. But also in a world where hard power is back in fashion, are you confident that your business is ready to manage potential threats?
First, business diplomacy. Most businesses understand the importance of contacts and networking in their home market. However, they often neglect this abroad, particularly given possible language and cultural barriers. That is a mistake. Effective networks are just as crucial in overseas markets. Nor are the obstacles to creating them insurmountable.
An effective strategy should begin by including cultural issues at the market research stage. Clients and consumers have different expectations in every market. Understanding those expectations as well as local business culture and customs is key to success. It is worth investing in cross-cultural training to ensure that key staff get cultural sensitivities and communication styles and understand local negotiation tactics and decision-making processes. When I was posted to New York in 1991, the incomprehensible look I got when I first tried to order a Deli sandwich reminded me that, despite our supposedly common language, I had a lot to learn. It is vital to know too whether to go straight to business in a meeting or start with a ‘get to know you’ chat.
However, armed with this knowledge, building a new network should be relatively straightforward. Leveraging relevant trade associations, government bodies including embassies and Chambers of Commerce a can help provide access to key stakeholders, access to market entry and other support services and advice on regulatory compliance. International digital networks are also an effective, cost-effective way to expand networks. A final key point. All too often companies focus solely on finding potential clients. My advice would be to build a broader network so that, if you are facing challenges like new regulations, taxes or legal issues, you have access to people who can help, including decision-makers. You cannot afford to wait until a problem arises to do that. The same with new governments. Cultivating contacts who may be influential in the future is a wise move in an era of rapid political change. An apolitical stance also makes sense in an increasingly polarised world.
Turning to potential threats, the world is becoming a more unpredictable and potentially dangerous place. Governments are responding by investing heavily in things like defence, cyber security and law enforcement. Businesses need to do the same in proportionate ways. Intellectual property and customer information are now key targets for state actors, organised crime and cyber criminals. I will expand on some of the challenges next time.
Author: Robin Barnett – Strategy and Business Intelligence Adviser
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