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.
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.
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
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.
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”. If silent moments arise in conversations, Americans are rather uncomfortable and often feel compelled to quickly fill the gaps. Americans are often uncomfortable with silence. Silence is avoided in social or business meetings. Obviously, this direct form of communication can cause problems with people from cultures in which business is build on personal bonds, where conflict is handled indirectly and where “saving face” is important.
Time is money
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. Schedules are important and deadlines are strictly adhered to. In meetings and negotiations great emphasis is put on getting the best results in the quickest possible time.
Meetings
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.
Be prepared to participate in small talk at the beginning of the meeting. It serves as a means to create a comfortable atmosphere before “big business” starts. 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.
Business cards are infrequently distributed and are usually not exchanged unless you wish to contact the person at a later date. The dress code may vary according to location and type of business, but wearing classic clothing (suit and tie, dress suit) in grey or navy will ensure that you give a confident and conservative appearance.
Americans respect their privacy and personal space and generally sit or stand further apart than people from Southern Europe, Saudi Arabia or Latin America.
Negotiations & contracts
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?”, it is a good idea to get help from an interpreter.
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. See you later" is just an expression. People say this even if they never plan to see you again.
American Women * Women are leaders in all aspects of American life from business to education to government. Never assume that a working woman is in a subordinate position.