Johan van Hamme

Supply Chain across borders

// April 30th, 2010 // No Comments » // Cultural awareness, Supply chain management

How would you define business culture?

 -         The intrinsic differences due to a specific country style?

-         The way a company has developed an own branding saying “This is how we do business”?

-         Characteristics that belong to a certain type of industry/vertical?

-         The usage of a typical company owned process?

-         The communication style used as driving business element?

It does not really matter if you would call it “Mickey Mouse” or “Donald duck”, business culture counts! Supply Chain and Purchasing are just some of the functional domains where the impact could be significant if not properly managed.

You might be a true expert in this area but without understanding the exposure, company context and business style specifics you will certainly fail. Being the Supply Chain professor without being emphatic, creative and communicatively strong is just not good enough.

When dealing with European people you will not only be facing the different languages but also the need exists to develop and potentially adapt your strategy in function of the targeted country or company. Leading negotiations or securing operational elements is different in France compared to Germany just like a Renault car is not the same as a Volkswagen.

It’s like a double cloud surrounding your Supply Chain organisation and services. On the inside the company style cloud, on the outside the cultural cloud. Quite obvious that you can change that centre of activity into Sales, Marketing, Manufacturing, Research & Development, Finance, etc.

By understanding the differences you will drive the performance of your Supply Chain across borders in a much better and efficient way.

Do not remain stuck in the Iceland problem but move ahead!

European Business Culture

// February 5th, 2010 // No Comments » // Cultural awareness

While crossing borders for doing business, simply having a good proposal may not be enough. For doing business in Europe – a colossal melange of several countries, it is extremely vital to know a lot about their specific cultures and style of doing business if you are to succeed.

So those of you who thought France is just a short train ride away from UK, and hence the mode of communication and business etiquette can’t be all that different; Well, it’s a  good thing you chanced upon this article, as you are in for a real surprise…

• Just like eating tapas is way different compared to relishing curry wurst; the differences in Spanish and German cultures are just as unique. Germans are known to be extremely business-like, to the point and really into facts and figures. As a business associate please don’t expect your client to invite you for beer and sausages at a local restaurant.  Instead focus on getting your points across in a crisp manner so there is no room left for confusion. With Germans always plan your meetings at least few weeks in advance; they value their time way too much to accommodate you without a heads up.

•  Outgoing, warm and friendly, these are three words that can best describe Spanish folks. Expect to be invited for lunch meetings, and don’t be surprised if the meetings never start on time. Fairly laidback and relaxed, they also take time to know you before finalizing any business commitment. Also, remember that when approaching them to strike a long term deal, dress appropriately – a blend of chic and smart will be highly appreciated.

• There is a lot more to the fashionable country of France than haute couture, gourmet cuisine and romantic getaways. Make sure to brush up on your linguistic skills before approaching your client. If you don’t have any background of the language, try and learn some basic greetings for a good first impression. The French like to conduct business professionally in an uncluttered fashion; good manners and polite conversations are definitely seen as plus points here. Some organizations in France may be too formal and kind of unfriendly; however, some companies may adopt a more relaxed approach. Not very finicky about being dot on time, the French will not take offence if you are fashionably late (not more than 15 minutes). But when you do show up, make sure to don the best labels in your closet. When bombarded with several questions regarding the business plan of action, be calm and factual; the over questioning may be to test your aptitude and interpersonal skills.

• Strong networking skills and reference from other Italian companies will take you a long way while doing business in Italy. Dress well in this fashion forward place and make sure to socialize; do not decline any invitations as that can be viewed as disinterest or rudeness. Also, Italians totally love it when you are gung-ho about their food, culture and rich history. So go all out while breaking the ice with pleasantries.

• While doing business in Great Britain please refrain from the notion that the words British and English are one and the same. Comprising of Scotland, Wales, Northern Ireland and England, Great Britain has distinct cultural differences in all its regions. Everything from attire to style of doing business is rather conservative in Britain. Punctuality is an unwritten rule and these folks aren’t so easy to impress. But remember once you are in, you are in, as they like long-lasting business relationships; hence they take their time to trust others. Maintain eye contact during meetings; be polite and focus on key facts. Emotions hardly have much space in professional meetings in Britain.

• Belgians are polite people who really value their time. While doing business in Belgium, stick to hand shakes and please refrain from being late for meetings. Whether your client will talk only business, or will spend time getting to know you better is very relative in Belgium. It is best to be prepared for both scenarios. In any case, some small talk is a great way to break the ice. Structured and very business-like in their approach, Belgians don’t take very long to strike a deal. Just sticking to hard-core facts and figures is not enough to win them over. It is vital to take sentiments also into consideration to build a strong, trusting relationship with your client.

• Disciplined, practical and traditional – the Dutch do business the old fashion way. While doing business in Netherlands remember that the Dutch are broad-minded people and fairly tolerant of other people’s cultural differences. At the same time, they are reserved and display of affection of emotion is uncommon in business meetings. Modesty is held in very high regard in Netherlands. Refrain from boasting or exaggerating about your achievements.

So if you are interested in doing business in Europe, you may need the assistance of professionals who understand the cultural and diverse differences, and can help you get your best foot in the front door.

German quality !!!

// January 11th, 2010 // No Comments » // Cultural awareness

Doing business in different countries of Europe helps you understand the cultural diversities and influences. Knowing about factors like work culture, etiquette and negotiating patterns of a country before doing business there is extremely essential for the success of the venture.

Germans have a reputation of being to the point and extremely professional. So is it true that most of their interactions are rather dull without any humour? Read on and know more:

Germans have a natural aversion towards uncertainty while doing business. They prefer things that are strategically planned and neatly documented. Facts, figures, research and analysis are almost mandatory in Germany, if you want your clients to take you seriously. A slip-up in any documentation can be perceived as frivolous and unprofessional behaviour.

Germans are often labelled as “cold” people. Exactly how true is this? Do they have an attitude problem? Well, not exactly. Germans are very private; so don’t expect to talk about children, pets or spouse over your business meeting. They prefer keeping their professional life and personal life as separate as possible. Also, most of them have a hard time building trust. So it is best to give your client his space; as the awkwardness will automatically wear off once he gets to know you better.

In Germany it is considered rude to communicate on first name basis in professional relationships. Reference with professional titles may be seen as a sign of good manners. While meeting a group of people, greet each individual with a firm handshake.

Germans are sticklers for time; so being punctual is an unwritten rule. Remember coming early is considered as rude as coming late. German work culture can be stressful and they really value their own time as well as the time of others. So late or early comers are definitely not welcome.

Unlike Italy, small talk has no place in German business meetings. So please refrain from cheesy banter or slapstick jokes. However relevant and intellectual humour may be taken in good stride.

Germans prefer to have their schedules planned weeks in advance. So make sure to schedule your meeting at least couple of weeks ahead. In fact, even a long conference call is best planned in advance.

 The word formality is not a “mere formality” in Germany. Things like greeting the senior before greeting anybody else in the room is very vital. Also, don’t just enter the meeting room and choose your place; let them tell you where to sit.

Being dandy or charming is almost pointless with Germans. They are interested in result oriented projects and hard-core facts. Please do not try to speed things, as they take their time to come to a decision and really dislike rushing to conclusions. Previous success stories and high professional qualifications may be mentioned to ensure sincerity on your part.

Doing business in Germany may seem like an overly-painstaking task, but here is the good news. Once you prove yourself, there is no looking back. So you can look forward to a long-term business relationship.

Vive la France ! Do it the French way …

// January 11th, 2010 // No Comments » // Cultural awareness

Believe it or not, cultural differences have a huge impact on business deals. So if you think that doing business in France is the same as doing business in Germany or Italy, then you are in for a big surprise. Let’s look at a brief overview of things to keep in mind while striking a deal in France

Though Europe is a culturally rich and multilingual place, it’s safe to say that no country is as possessive about its language as France. The French hold their culture and language in very high regard, so knowing absolutely zilch French may work against you while doing business here. It may not be possible for you to sharpen your linguistic skills in a day, but it is crucial to learn some basic greetings to impress your clients and make them feel comfortable.

The French like to conduct business professionally in an uncluttered fashion; good manners and polite conversations are definitely seen as plus points here. Some organizations in France may be too formal and kind of unfriendly; however, some companies may adopt a more relaxed approach.

Trading air-kisses in soirees is common in France, but in professional rendezvous it is best to shake hands in the beginning and at the end of the meeting. Also, it is advisable to stick to words like vous, madame, monsieur, and refrain from tu and first names. Once your clients form a friendly rapport with you, they themselves will ask you to change the greetings to tu.

“Beauty is skin deep” and “clothes don’t make a man”! These sentences are far from true in France. In this fashion-forward country, your clothes are the reflection of your personality and how you carry yourself is crucial. Women here are also quite coquette and dress in chic attire for business meetings.  

The French may not do the conventional business meeting in a conference room. Lunch meetings are very common in the land of gourmet cuisine; yes wine included! Table manners are also vital; so no elbows on the table and make sure to pass the food to the person sitting on your left. Also, remember the host always pays.

Being fashionably late (about fifteen minutes) for meetings is mostly accepted in France. This trait, however, is more common in South of France. Though friendly and courteous, the French detest people who are too chummy and those who indulge in personal questions.

Make sure your proposal highlights key facts about your company and services. If faced with blunt questioning or mild criticism, take a receptive approach and explain your view in a logical way. Getting defensive or feeling offended is strictly unadvised. Also, don’t be too pushy or try too hard to put forth your points.

The French definitely believe in testing the waters before plunging, but they rarely change their decision. So be patient while negotiating and sipping on some sparkling Pinot Noir.

Mergers & Acquisitions … the right way!

// December 28th, 2009 // No Comments » // Cultural awareness

Yes …. Let’s go for it together! We will be more successful jointly.

Driving this process means answering some of the following questions below:

• Do you have the money for this?
• Are you genuinely interested to acquire your”friends” or to merge with them?
• What would be the criteria to make this selection?
• Is there a mutual benefit and/or complementarity?
• Would your “friends” be receptive anyway for such an idea?
• Did you investigate alternative “friends”?
• Will there be an organizational re-structuring?
• What would be the people impact?
• Did you make any thoughts on the operational process?
• Is a common “go to market” approach required?
• How will the current customers react?
• Will you fish for customers in a geographically clustered way?
• What would be the new differentiator looking for new clients?
• Did you check the potential new end-to-end process?
• Ever thought about the communication process internally and externally?
• Will there be a change in DNA of the involved companies?
• Would you need to call upon local lobbying in order to complete the story?
• What will be the reaction of the business authorities (ex. European Community)?

You could be “the great master” driving this process but for some reason it just does not work….what could be this unsolved mystery?

Did you consider the element of business culture when you try to walk from A to B?

Like many others, you might have made the same mistake!

The key reason of failure of mergers and acquisitions is indeed the lack of cultural knowledge.

Just thinking that “our friends will do it our way” is not too intelligent!  Hopefully it’s not too late now….

Follow below recommendations and process improvements to make it work:

• Make sure to be aware of and to truly understand the cultural differences between either parties
• Check if it is a country “thing”, a business environment element or both
• Take these cultural aspects into account to assure “best practice”
• Prepare your mergers & acquisitions’ strategy including business culture
• Call upon highly specialized companies to assist you if needed.

Your idea might be too valuable to have it “demolished” by a bad preparation. The game of “Cowboys and Indians” is over …..Cu-Factor can be your saviour by “Making the difference work for you”!

The Italian Job

// December 28th, 2009 // No Comments » // Cultural awareness

While doing business in Europe it is extremely important to be aware of the cross-culture differences. Bearing in mind the cultural influences of a country are crucial for the success of your business. Are you planning to start out a new venture in Italy? Are you apprehensive about getting along with your clients in Italy?

Well here is a list of things to keep in mind to do business – the Italian way:

• Good manners and politesse are held in high regard in Italy. They prefer to deal with people who are polished but not uptight. So it is important to maintain some distance while having a professional conversation, but at the same time it is vital to be courteous. Too much resistance may be perceived as a sign of snooty or cold behavior.

•  Make sure to shake hands at the commencement and at the end of all rendezvous, this implies for group meetings as well. Italians are warm people; so don’t be surprised if the greeting switches from a handshake to an embrace after a while. In fact, treat it as a positive sign; it indicates that their comfort level has gone up.

• Remember that Italy is one of the most fashionable countries in the world. Home to some of the most coveted fashion labels, this place is about looking stylish and being well-dressed. So unpolished shoes and shabby wrinkled shirts are big no-no’s.
• Italians are relaxed most of the times, however, don’t be surprised if your client turns up little late for the meeting. And in case you are running late for the meeting, make sure to give them a heads up.

• With a slightly unconventional approach to doing business, Italians believe in combining business with pleasure. So inviting your clients for lunch or dinner is a good idea. You can take the consent of your senior client, as to who all should be invited for the meal. And by all means, do not decline any invitations; it is a great chance to network and expand your business.

• If you happen to have any other clients in Italy, you can use your networking skills to introducing yourself; it builds the trust factor. Also, refrain from fixing any meetings between noon to 2pm, as Italians like enjoying their meal at leisure.

• While trying to break the ice during the first few minutes of the meeting, take a relaxed approach. Don’t just get down to business instead talk about casual stuff like Italian food, culture, etc. When you submit your proposal make sure to give as much information about the company and your services as possible.

• Give the potential client time to go through the proposal. Stay in touch but don’t be too pushy, as that can be viewed as rudeness.

Understanding cross-culture differences will take you a long way in doing business in Italy, and help you and your business expand and succeed tremendously.

So are you ready to do an “Italian Job”? (www.italia.it)

Moving to Europe !

// December 17th, 2009 // No Comments » // Cultural awareness

Wow… I am on my way to Europe! (www.europe.eu)

Indeed, a fantastic adventure and a true change of lifestyle but … make sure to be well prepared.

Just take a few minutes to analyze the following questions:

• Has it been a free choice or one “imposed” by your employer?
• Do you like the idea to move to another place of the world anyway?
• Have you been able to make your own selection of preferred countries and cities?
• Did you check out the landscape well before making that final decision?
• Has your employer been supportive on the process?
• Is there a plan B (contingency) in case you would not feel happy after all?
• Did you strongly engage your family and friends?
• Are the financials adapted to the new country?
• Will you enter a place known for its international style?

Like everywhere, using expatriate support would be of great value in Europe.

You can and need to call upon these people before, after and during your stay.

Hereby some reasons not to forget them!

• You will be served by local specialists
• You will learn more about the local business behaviours
• You will get to know the cultural aspects of living in a specific country or region
• Some will be able to teach you more about the European continent (helicopter view) and each individual country (www.cu-factor.com)
• They will help you with practical but fundamental things like housing, school, spouse’s job, opening hours, etc.
• You will be teached to understand the country by guided visits to “key points”
• They will support you to appreciate local culture (hospitality, food, sports, …)
• You will learn more about local rules and regulations (environmental, social, traffic, employment, social security, etc.)
• They will guide you in the “do’s and don’ts” allowing you to integrate better
• You will learn how to speak the local language.

Most probably it will not be that difficult to adapt to multicultural and international countries like Belgium, Switzerland, The Netherlands or cities like Brussels, London or Amsterdam. It also depends from your origin, flexibility, motivation, openness, etc.

No doubt that expatriate support will accelerate your integration process!

I love Europe … it’s on my T-Shirt !

// December 6th, 2009 // No Comments » // Cultural awareness

Developing strong business relationships is not really an easy thing to do.

However, loosing your customers’ trust could be a very fast process if not managed properly. Compared to this, driving a Lamborghini or Ferrari on a German highway could be considered as very slow!

Creating the ideal “working together” when facing your own team or your clients could be a cumbersome thing.

It’s quite strange to understand that many companies are still not aware of the importance of local business culture. Far too often this crucial element is still treated like a “soft animal” and so not on top of the priority list.

Like every continent, Europe is full of “things to know”. With its complex structure and variety of people and countries it would be very challenging to use the terminology of European business. You can only make that failure once!

Interested to know some reasons why cultural awareness training is necessary before doing business in Europe?

“Listen very carefully; I shall say this only once”:

• Europe does not exist
• All Europeans are truly different
• No single country is 100 % comparable to one another
• Even talking the same languages (linguistically) is not a guarantee for “equal minds”
• Sensitivity has a different value everywhere
• The voice and speech tone could distract you
• Some countries have an invisible wall to protect themselves
• The word and decision of the boss has a different value comparing country A to B
• People could just love or truly hate your jeans trousers
• Time to decide is something quite relative (like Einstein’s theory)
• Taking initiatives and risks changes from West to East and from North to South
• Political influences do probably exist everywhere but not all will tell you
• What people would do for money is far different in the East
• Lunches and dinners are or ”very important” or “for the stomach only”
• Many people speak many languages but not in every country
• Some countries can be “clustered” as more or less “comparable souls”
• Corruption is a national sport in many countries but ssssstttthhhh
• The climate stresses or embraces people
• Often “who you know” is more important than “what you know”
• The level of service is not always what you expect
• People are usually friendly but not everywhere and always
• Big behavior differences do even exist within smaller countries
• Only some local laws and regulations are truly common European
• Some countries have “silent trains” where you are not allowed to speak J
• Many cities have their own “brand” and high specialty

You need to create your business and communication strategy on a country-basis! Unless you would assume that a German business meeting would be similar to a French one !

Dank je, merci bien, thank you, Danke, gracias, grazie ….

A smart guy?

// November 27th, 2009 // No Comments » // Cultural awareness, Supply chain management

As founder and owner of the companies Clear Vantage and Cu-Factor, Johan van Hamme (Master Science in Chemical Engineering), will be able to provide you clear recommendations and support on how to reduce your costs, optimize your organization and streamline your material flows with a strong emphasis on quality.

The following offered services are all characterized by a no-nonsense, in the field approach:

• Consultancy
• Supply Chain Management and Purchasing Trainings
• Manufacturing and Development Audits
• Cultural Business Trainings

His 20+ years experience as Supply Chain Management Executive with key global industrial players could be of great contribution to your business.

Particularly, his in-depth knowledge of the automotive industry (car manufacturers, tier suppliers and aftermarket) and other highly complicated domains can help you to construct or strengthen your “bridge” to the Western world.

Johan’s ability to master six European languages in conjunction with a strong sense of (European) business culture is a further significant differentiator that provides a strong value.

With the engagement of his international partners (Europe, USA and Asia) he has turned quite challenging tasks into real successes demonstrating excellence on cost-reduction methodologies, process improvements, project management, technological innovations and communication.

Look for more on www.clear-vantage.eu and www.cu-factor.com

About European business … love or hate?

// November 25th, 2009 // No Comments » // Cultural awareness

Hopefully you are not hesitating to develop or reinforce your business activities with European countries. Despite the globalization and ongoing discussions on power shifts from West to East, the “old continent” remains one of the strongest economical zones on this earth. The fall of the Berlin wall also opened up extra growth opportunities for the poorer Eastern part!

Hereby my overview on Pro and Cons of doing business in Europe:

Some positive points:

• Infrastructure
• Quality of life
• The Western part is one of the richest zones worldwide
• Market size
• Mainly well-established companies
• Very strong quality brands
• Technological level
• Good reference for sales purposes elsewhere
• Pioneering and innovative approach
• Mid to long-term focus
• Logistical advantages (global hubs)
• Eastern European developments
• Easier spin-off effects towards other areas
• High educational level
• Language skills

 Some negative points:

• Complicated fragmented landscape
• Difficult to secure a harmonized approach
• Rather limited European wide scale-effects
• European versus local rules and regulations
• Specific business behaviour on a country basis
• Flexibility and adaptation to changes
• Rigid slow business processes in some countries
• Hierarchical structures
• Demography and aging population
• Variety of used languages and styles
• Making failures is a shame
• Difficult acceptance of “at least you tried it”
• Limited European feeling and consensus
• Political mingling with business
• Protectionism

With an open mind for understanding the various in-country business specifics you can walk very far! Without considering the local “things to know” you will fail …

Avoid all the pitfalls and secure your business in this wonderful continent by talking to specialists like Cu-Factor (www.cu-factor.com). How to value and implement cultural business aspects is crucial ….otherwise your would need a very big dustbin!