TIME IS MONEY –
UNDERSTANDING US BUSINESS CULTURE
The US, the world’s third largest country
both in size and population, is a multicultural mosaic of 300 million people of
mixed race and heritage. Yet, despite this ethnic and cultural diversity the US
still exhibits a distinct business culture. If you are planning business
ventures in the US, a basic understanding of this business culture is essential
to your success. Here are some insights that help you avoid common mistakes and
misinterpretations.
Basic concepts
An important aspect of US culture is the
American Dream: the widespread belief that every individual can succeed and
prosper financially by working hard. This idea contributes to a strong work
ethic and to a system that is merit based. The repercussions of this belief in
US work life are long work hours and frequent overtime, as well as a clear
distinction between management and subordinates.
In addition to a strong work ethic American
business culture is also characterized by a heavy emphasis on individual
initiative and achievement. Personal competence, professionalism and
accountability for individual performance are highly valued. This leads to a
work culture where superiors are only consulted when (absolutely) needed and
where most business is carried out autonomously.
Another striking character trait of US
business culture is its well-known informality. Thus, titles are seldom used in
business environments and most US business partners will offer to use first
names almost immediately. Although this casual style can be misleading for
people from other cultures, it is certainly not intended as disrespect, but is
rather an expression of the prevalent egalitarian notion in American culture.
Communication style
In their business communication Americans use
a very direct style. The primary purpose of communication is to exchange
information, facts, and opinions. Typical phrases are “let’s get to the point”
and “what’s the bottom line”. There is more importance attached to what is said
than how it is said.
In accordance with their explicit
communication style Americans will not hesitate to say “no” or criticize others
in public. If silent moments arise in conversations, Americans are rather
uncomfortable and often feel compelled to quickly fill the gaps. Obviously this
direct form of communication can cause problems with people from cultures in
which business is built on personal bonds, where conflict is handled indirectly
and where “saving face” is important. (Saving Face defines a strategy
to avoid humiliation or embarrassment, to maintain dignity or preserve
reputation.)
Time is money
Just like many other cultures are preoccupied
with relationship-building, Americans are preoccupied with time. For them time
is almost a tangible asset, which can be saved, spent, lost, found, invested,
and wasted. Their central tenet is that “time is money” and wasting time is
just as bad as wasting money. Thus punctuality is an essential part of US
business etiquette and lateness is considered disrespectful and rude. Meetings
start on the dot and are expected to proceed uninterruptedly. Schedules are important
and deadlines are strictly adhered to.
Meetings
In meetings and negotiations great emphasis
is put on getting the best results in the quickest possible time. Although this
may appear hasty to others, it is in line with the time-conscious behavior of
Americans. If you really want to annoy your American business partner, either
be late for a meeting without calling in, or sit down and talk as if you have
nothing else to do for the rest of the day.
Meetings start on time and often begin with a
firm handshake. The handshake should be accompanied by direct eye contact,
which signals interest, sincerity and confidence to your American business
partner.
Suitable topics include everything from
job/work-related matters to sports (a clear favorite in the US), weather,
travel, food etc. Controversial subjects such as religion or politics should be
avoided just as personal matters.
Americans respect their privacy and personal
space and generally sit or stand further apart than people from Southern
Europe, Saudi Arabia or Latin America. It is therefore advisable to keep a
comfortable distance of approximately 18 inch (or an arm’s length).
Negotiations &
contracts
In negotiations Americans are deal-focused.
They want to “get down to business” right away. Getting to know each other and
building relationships can be done while the business discussions are under
way. Americans regard negotiations as problem-solving situations based on
mutual benefit and personal strengths, with a clear emphasis on financial
position and business power. In discussions and negotiations American business
partners value information that is straightforward and to the point. They
expect the other delegates to think for themselves and to express their own
ideas and opinions.
The main objective of negotiations is usually
the signed contract.
When doing business in the US you should be
aware of the fact that for most procedures there are a set of rules and
guidelines, state and federal laws, that your US counterpart must follow and
that you as business partner also need to adhere to.
Business language
American business language is full of
idiomatic expressions, many taken from sports (e.g. touch base, ballpark
figure, game plan, home run) or military (e.g. rally the troops). Most
Americans may not even be aware that they are using idioms, but it can be quite
a challenge for people who are not so familiar with American culture. Thus, if
your US counterpart requests a “ballpark figure” and you are not sure what he
is referring to, or he states that “sales went through the roof” and you are
wondering “which roof?”
Apart from these idiomatic expressions the
American language offers a few other pitfalls as well for foreign business
associates. For example, the ubiquitous “how are you” is by no means a question
that requires an explicit answer regarding your physical and emotional
well-being, but is a polite greeting form that can simply be answered with
“Fine. Thanks.” In the same way the remark of your business partner
“let’s have lunch together” should not be taken literally as a specific
invitation to have lunch, but rather as a polite “let’s keep in touch” message.
I guess we are on the same page,I think that time is money as well.Time needs to be well organized specially in your own job, life and recreational activies, Time waits for no one and you need to have goals.It is frustrating when you have a meeting and the other parties are late and have not called to let you know their tardiness. I like the idea about schedules and agendas. However,you either adapt to change for a better future and comply with the rules of the Business atmosphere and prosper or get left behind. This was a great article.
ReplyDeleteIt's an interesting topic!! I like the idea if you waste your time, you waste your money.
ReplyDeleteIn some companies is estrictly important care the time and be punctual because that produce more money, our time in this world is finite, so it's better to do things as quickly as possible. Alternatively, spend time and effort on things that get the results we are looking for. Also I like the part in which business companies use idiomatic expressions I think that business companies need to have a special language to comunícate. Excellent article ��
we should learn about American cultural and invest our time in good things that improve our knowledge because if we adquire new knowledges we get easy money. for other, must enterprises which are very estrict do the things quickly as possible, they have the idea if you waste your time , your are not doing well the things
ReplyDeleteexcellent topic...
In my opinion,This is culture to adopt in our salvadorean culture, taking into consideration that American people get money by saving time and working hard. It is also important that in these processes respect be taken into account. Those tips in order to get success in our life.
ReplyDeleteI liked this article because it shows us something about the American culture, and the business area, too. It is well-known the phrases "Time is money-" And I think it is, because time is valuable in any area.
ReplyDeleteIt's really interesting know about this business culture, it's amazing the way Americans are organized, they are punctual, responsible and start meetings on time because their central tenet is "time is money", as well as they are respectful and no criticize others in public. I like the culture of Americans in order to get a business success.
ReplyDelete