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When New York-based advertising firm Ogilvy & Mather sent Scott Kronick to China in 1995, he spoke no Chinese and knew little about the country. He remembers the difficult first months as he struggled to communicate with his staff. Now the 42-year-old Michigan native is president of the company's public relations group in Beijing, and he realizes the value of local know-ledge: Most of the Westerners he hires speak Chinese, and many have lived in China. "We're in the communications business," he said, "so the ability to function comfortably here is important." As American companies expand their operations in China, demand for Chinese-speaking managers who understand Chinese culture is surging. Business schools across the United States are adding practical classes about China's economy and tailoring workshops for executives being sent to China. Consultants with knowledge about China are also cashing in. Frank Lee, who moved to California from Taiwan in the 1980s, opened Global Intelligence Consultation in San Diego in February. Catering to American firms that want help managing their businesses in China, he already has a handful of clients, including two Fortune 500 companies. "A lot of companies are realizing they need to be in China," he said. "There is incredible demand." Surging U.S. trade with China is driving that demand. According to Commerce Department figures, the United States imported $210 billion worth of goods from China in 2004, nearly twice as much as in 2001. Rules are different But China is a difficult market for American managers. Not only do executives have to deal with corruption and rampant intellectual property theft, cultural norms are also confusing. "The rules of the game in China are not the same," said Ray Friedman, a professor at Vanderbilt University's Owen Graduate School of Management in Nashville. "You have to spend some time to learn how to do business there." Part of the problem is that few American executives speak Chinese fluently. Managers at manufacturing plants have had a particularly hard time developing relationships with workers, since few Chinese without college degrees speak English. Cultural misunderstandings are also a problem. When Lee talks to American managers heading to China, he coaches them on everything from how to earn respect from Chinese staff to how to negotiate. One point Lee makes is that while Americans are usually clear about what they want, Chinese are indirect. "In negotiations with Chinese, the first 30 minutes are just warming up," Lee said. If Americans force Chinese negotiators to get down to business too quickly, conflicts can arise. Business schools are scrambling to teach similar lessons. "People have realized they are going to deal with China no matter what, so they'd better learn about it," he said. The University of South Carolina's International MBA program, which accepts about 100 students a year, saw the number of students in its Chinese-language track rise from five in 2000 to 14 this year. The program involves intensive training in Chinese and requires more than a year of study in East Asia. Partners for U.S. schools Other American universities are partnering with Chinese schools to offer MBA programs. Harvard Business School runs an executive MBA program in Beijing with Qinghua University, one of China's most prestigious schools, and sends students to China for research projects. More than 70 Chinese business school professors visited Harvard in August to study teaching methods. Graduates of Chinese MBA programs are highly sought after, especially if they speak English. Partly, that is because it is expensive to send American executives to China. With housing packages and allowances for international schools, Lee said, the average annual cost per employee sent to China is about $600,000. Hiring Chinese is also becoming more practical as more workers gain experience. For those reasons, Friedman said, "American companies are shifting toward having Chinese staff." Lessons learned Sandy Springs-based UPS has taken that approach. In the early 1990s, several American managers lived in China. Today all of the company's 400 China-based employees are Chinese. John Flick, spokesman for the company's international operations, said the company has hired locals "because they understand the language and culture." He added: "These folks have taught us more than we realize." UPS bought its former Chinese joint venture partner last year and plans to expand to 3,500 staffers in China by the end of the year. During the expansion, Flick said, the company will send some Americans to China. To find good candidates, employees and their families will be screened for adaptability to living in China, will have a chance to visit China before taking jobs there, and will get training on everything from how to use a Chinese bank to Chinese tax laws. "The families have to be happy over there, too," Flick said. Dell Inc., based in Round Rock, Texas, is solving part of its management problem by recruiting Chinese nationals studying at American universities. New hires are then groomed for key positions in China, said Jess Blackburn, a company representative. Those tactics may be expensive, but Tarun Khanna, a professor of corporate strategy at Harvard Business School, argues that the investments are worth it. "My sense is that Americans tend to be less aware of the rest of the world than, say, Europeans," he said. If American executives don't catch up soon, he added, "they are likely to be disadvantaged in the next 10 years." Source: www.ajc.com Aug 11,05 |
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