WHAT BUSINESS WANTS: LANGUAGE NEEDS in the 21ST CENTURY INTRODUCTION the Language Flagship, an Initiative of the National Security Education Program (NSEP) at the U.S

WHAT BUSINESS WANTS: LANGUAGE NEEDS IN THE 21ST CENTURY INTRODUCTION The Language Flagship, an initiative of the National Security Education Program (NSEP) at the U.S. Department of Defense, has undertaken one of the most systematic efforts, to date, to assess and understand the needs for global skills in business. Over the past three years, this effort engaged more than 100 business leaders to identify the role and value of languages and cultural skills to business’ bottom line. Of equal importance, it identified a potential role for business as an integral part of a dynamic that will bring significant change to language education in the United States.

In the face of strong perceptions that English is — and will continue to be — the lingua franca of international business and that most companies address their language needs through creative “workarounds” (hiring in-country nationals and using translators), Flagship sought to delineate the actual needs of business for an American workforce with global skills including advanced language proficiency. This also included domestic business dealings with a multilingual workforce and/or clientele. We were impressed to learn of a real need, and real opportunity costs, as well as a call for more systematic discussion of the role and value of language skills, not only within the business sector but throughout American education and society.

During 2008, Flagship brought together 38 representatives from a broad cross-section of the U.S. business community to participate in a Metro Language Series in San Francisco, Seattle, New York, and Washington, D.C. These sessions gleaned insights about the value and role of global skills in business success. This series was an important next step to an inquiry begun in 2006 with the development of three state-focused Language Roadmaps designed to address the economic and social imperatives for a globalized workforce at the state and local level. The Roadmap efforts – in Ohio, Oregon, and Texas — convened more than 70 business leaders whose input was critical to the development of strategies and policies responding to The Language Flagship leads the nation in designing, supporting, and identified needs for language education. implementing a new paradigm for advanced language education. Through an innovative partnership among the federal government, education, and Participants in both the Language Summits and the Metro Language Series brought a broad range of business, The Language Flagship seeks to graduate students who will take experience to these sessions, not only in terms of their responsibilities but in the breadth of industry sectors their place among the next generation of global professionals, commanding a they represented. Business sectors included the hotel and travel industry, food services, high technology, superior level of proficiency in one of many languages critical to U.S. transportation and shipping, aviation, banking, law firms, engineering and industrial development, waste and competitiveness and security. water management, international business development, automobile industry, and a number of economic www.TheLanguageFlagship.org development agencies. Participants represented views from research and product development, marketing and branding, international business development and sales, financial and legal services, domestic workforce management, large-scale project management, and corporate human resources.

Susan J. Duggan, Ph.D., Senior Strategist The Language Flagship, National Security Education Program Washington, DC 2009 WHAT BUSINESS WANTS: organization in the state of Washington noted losing to be in their own language. Without that linguistic in their native language. Misunderstandings or KEY FOREIGN LANGUAGE NEEDS revenues into their region because of the inability to connection, there is loss of trust in the data, resulting mistakes in conveying that type of information cost IN THE CORPORATE SECTOR translate training contracts and curricular materials in a lack of business-generating revenues. The time, relationships, and money. into Chinese and other languages for professional- same holds true for maintaining good in-country Develop New Business and Keep it level education of students from abroad. The Port partner relationships, particularly since a corporate Succeed with External Communications Losing potential or actual business because of Authority of New York expressed concern that without partner often services in-country customer needs. If in other Cultures misunderstandings through language and culture language skills on staff they might lose business to communications with business partners are not on Successful businesses recognize the need to be can cost a company millions of dollars. Deals other airports that could accommodate international target, companies find themselves in a position of accurate — culturally and linguistically — in their lost because of lack of understanding on both clients more easily. being overcharged and underserved, and potentially international marketing campaigns as well as in sides result in loss of return on investment in the alienating their own customers. their marketing efforts to domestic multilingual business infrastructure overseas, actual business communities. “Translating” well-known American “The lack of language skills among revenue loss, and loss of an important perception brands overseas challenges companies looking U.S. businessmen is an enormous “Companies need a whole ecosystem of of “competitive edge.” Developing new business, barrier to increasing U.S. participation to enter diverse markets with a variety of cultural especially negotiating complex arrangements, understanding among their customers, in overseas markets.” local communities, and partners in order traits. The concept of developing customer loyalty increasingly requires a full knowledge of the to develop or promote a successful local requires knowledge of and sensitivity to the host ELISABETH LORD STUART, OPERATIONS DIRECTOR, language and culture of the region. Only one U.S.-ALGERIA BUSINESS COUNCIL product. Advanced language skills provide culture at a high level. The potential loss of trust — participant in these sessions claimed that it was the foundation to trusted relationships with and commensurate loss of business — underscores customers, communities, and partners. relatively easy to continue to sell his company’s the importance of a full knowledge of the language With those skills we are able to enhance products in Asia by only using English. Avoid Mystery Pain — and maintain our connection with current and culture for external communications, marketing, Negotiate Solid Agreements: markets and develop new ones fully aware and branding, as well as for handling government What of business opportunities that are never Language skills, usually at a very high level, are of local customer needs and requirements.” and media relations. Several participants discovered? Without language skills companies miss needed for successful business negotiations, expressed that there is a laziness that pervades HERMAN USCATEGUI,DIRECTOR OF GLOBAL STRATEGIC business opportunities announced in local media or be it for structuring the specifics of a contract or INITIATIVES AND INTERNATIONAL BUSINESS DEVELOPMENT, communications throughout American society; STARBUCKS COFFEE COMPANY from local government communications. Elisabeth memorandum of understanding or for establishing but that communication is key to developing Lord Stuart, Operations Director of the U.S.-Algeria guidelines for supplier processes. Poorly structured trusted relationships in other cultures. Advanced Business Council, pointed out that several of their agreements, resulting from not understanding the Businesses servicing multilingual customers in the knowledge of languages and cultures of the country client/member companies that do not have French legal terms in another language, carry “mystery United States expressed concerns about having and community is necessary to successful external or Arabic language capabilities on staff often miss pain” (colorfully coined by one participant) into the appropriate language capabilities on staff. For communications. This supports brand awareness, Algerian “requests for proposals” that are written future when companies finally realize the errors banks, this means having bilingual tellers who can marketing, and sales for small, medium, and large in French and/or Arabic. She remarked, “The in the language of the contract to which they had provide service to growing immigrant communities companies alike. lack of language skills among U.S. businessmen agreed. The “pain” can be even more acute in dealing with complex issues of financial planning. is an enormous barrier to increasing greater countries where government oversight of business For transportation and delivery companies like UPS, “With more than 3,300 hotels around the world, U.S. participation in overseas markets.” Without and legal operations is not very high. FedEx, and DHL, drivers need basic-level language the Hilton Family of Hotels is continually growing,” appropriate language abilities in house, companies capabilities to communicate simply but effectively said Eileen Hanson, Vice President of Marketing miss formal proposals and informal leads for business Serve Clients, Customers and Partners Well to customers receiving packages. However, their Communications and Strategy for Hilton Hotels they could deliver overseas. Non-U.S. companies vie Lack of trust in business relationships reduces or customer service representatives need higher levels Corporation. “As we expand our international for international business and often have language precludes revenues. Developing trust with clients of language proficiency to handle complex matters development efforts, we continue to explore skills to surpass American businesses. and overseas partners requires advanced language of tracking services and regulatory issues. refreshed marketing strategies and communications and cultural skills. Higher proficiency in the language that are relevant and appropriate for new audiences, On the domestic side, new business is lost or delayed produces better relationships and moves that Companies face challenges in educating clients and further global interest in the Hilton Family of because of lack of language skills to negotiate the development time along more quickly than lack of about services and specifics of a product when they Hotels and the Hilton HHonors loyalty program. deals. As an example, business participants in Texas language skills. A representative of Federal Express lack language skills. Using interpreters for client and To do so, we need talent with a sophisticated noted a 10-year delay in getting Toyota to open up pointed out that their international customers expect product training is not as productive as explaining knowledge of the languages and cultures of the operations in Houston. An economic development the regulatory information in the FedEx database it directly. Some clients require training materials regions we are working in.”

4 5 Manage Cross-national Projects communications. It affects their company on a training in English, but admit that sometimes they feel requests for proposals, and contracts top the and Sales with Efficiency tactical level, it affects the training of their workers, that some of their employees, in the United States list. As U.S. businesses, large and small, look to Many businesses need to manage cross-national and it has a daily negative effect on their efficiency and overseas, do not fully understand the instruction. build relationships around the world, they face projects involving major building initiatives or product of production. Time is lost when companies do not A Hilton representative noted that the hotel chain the potential pitfalls of having a translator (often development. Without language skills managers comprehend the language, culture, and business currently requires training in English throughout all of from a third party) be such an integral part of their lose clarity in communications. Poorly managed context of a new market, whether overseas or in the their operations overseas, but recently has found it business or client relationships. Specifically, a lack teams cause delays in production schedules, loss United States. Companies lose time and money of knowledge of the product; of the technology of productivity, and wasted materials. This hurts unless they are able to adapt a product to a new “Ensuring you attract and retain top talent for and processes; and of continuity in relationships the bottom line. Companies constructing factories, market with the linguistic and cultural understanding a globally competitive company requires an with clients, partners, and the corporate team in military installations, or industrial complexes in to make that product and its marketing campaign investment in developing cultural awareness the United States affects the value of third-party particular noted the seriously large costs when work efficiently and effectively. Businesses also and language skills in your current workforce. translators. Additionally, businesses underline the delays — based on misunderstandings of contracts, lose time dealing with misunderstood regulatory Hiring managers must possess the skills high cost of having an outside translator, interpreter, work orders, and management issues — affect issues that delay full usage of a company’s services necessary to recognize and assess this vital or agency handle key business communications. combination of global abilities while each production. These companies have to absorb and products. As one business person noted about using in- day creating and maintaining an open and the cost of materials that are wasted on big inclusive environment that is sensitive to a country translators, it is a story of how “nothing Win the “War For Talent” projects that begin but do not get finished due to multi-lingual workforce.” worked terribly well, and it was all very expensive.” misunderstandings of language and culture. Inability to staff appropriately — with the right language skills and in a timely fashion — results TONY PADILLA, HR LEADER FOR THE 767 PROGRAM, BOEING COMMERCIAL AIRPLANES CURRENT SOLUTIONS “Our efforts are about more than in loss of business. Losing good talent because just building up workforces in various of lack of management support and inability to FOR BUSINESS’ LANGUAGE NEEDS geographies; we have to be able to communicate in the employees’ language costs difficult to pursue this training in smaller cities where How do these companies currently respond to their work seamlessly across the enterprise, a company in the long run. Winning the “war there are fewer candidates with adequate English language needs? They engage third-party help. regardless of location. That requires us to for talent,” as one businessman put it, becomes skills. To bridge that gap to acquiring and retaining Businesses engage translators, interpreters, global overcome any language barriers that exist increasingly important as overseas markets grow, good talent, they need to communicate directly in advertising agencies, and even outside assistance between workers in different geographies. and as domestic clientele with language needs with administration and management of projects and Without the ability to communicate clearly, the language of their workforce. staff. Several small- and medium-sized companies concisely, and effectively in both directions, increase. Companies face the cost of training new significant risks begin to enter the equation, employees unless they are able to retain them with For a company to bring a foreign national with native avail themselves of support from internationally- including lower quality, lost productivity, and appropriate support from management. This means language skills to the United States costs extra time oriented business councils (e.g., U.S-Algeria increased training costs. By addressing communicating effectively in the language and and money. Increasingly, companies face difficulties Business Council) and assistance from state and these needs early on, companies like ours culture of their staff for efficiency of operations and in arranging for work visas and realize the downside federal government with trade issues and entering can see a significant financial impact with for employees’ full usage of human resource benefits to the short-term nature of a foreign national’s work new markets. Beyond that, many businesses opt global initiatives.” (e.g., retirement plans, healthcare support). situation. Financial institutions in particular noted that for identifying a really strong, in-country partner JEFF STANDRIDGE, VICE PRESIDENT OF GLOBAL WORKFORCE they prefer to hire people here in the United States that can assume much of the work locally. Third MANAGEMENT AT ACXIOM CORPORATION Companies in the United States and abroad often with appropriate language skills — avoiding visa parties, be they partners or short-term contractors, manage employees who do not speak English well, issues, supporting the local economy, and providing introduce someone outside of the corporation who Efficient time management affects all businesses. but need to access corporate employee portals that for continuity of relationship with local clientele. often does not know the product, service, or mission A U.S. manager overseeing his production teams are offered only in English. One company noted that of the company. More importantly, third parties in Poland explained the loss of productivity when they have online services for their customers offered Use Translation, Interpretation, often do not establish the long-term trust necessary they fail to communicate fully with their production in 22 languages, but their employee portal is only in and Localization Judiciously and with Caution for successful business relationships. workforce in Poland, a workforce that is generally English, though they have many service employees Most businesses dealing overseas do need meant to save the company money. The savings who do not speak English well. This means further language skills for translation, interpretation, and Some businesses bring foreign nationals to the evaporate because of delays in production and misunderstandings of regulations and under-use of localization of products and services. Translation United States to learn about the company and waste of materials resulting from lack of clear benefits. Most companies stated that they do their of technical documents, working manuals, corporate standards. Acquiring appropriate visas

6 7 for long-term workers and bringing their English up for SMEs reflects their relatively small working CURRENT AND FUTURE LANGUAGES Engage Business to Support to company standards creates problems. Often budgets and inability to engage full-time staff, or OF IMPORTANCE TO BUSINESS Advanced Language Education a company opts for a hybrid solution of having even third-party agencies, with language skills. Each region represented in the Language Summits Identify champions within the business sector Americans on staff with language skills combined Small- and medium-sized companies should plan and Metro Language Series had different emphases to engage in a national dialogue that would with foreign nationals working locally. Businesses from the beginning to budget for language and on languages of importance to the businesses from make a movement to value language skills in the noted that their companies are willing to provide cultural expertise to be successful in new markets. that area. However, in aggregate, the participants United States more visible to business and to some language training to their employees, but Realistically speaking, however, they simply do underlined the usage of Chinese, Spanish, Arabic, the educational system preparing students for they find it difficult to identify commercial education not have the resources and could use help from French (for Africa), Hindi/Urdu, Russian, and future careers. Collaborating with business and agencies that will do an adequate job, and local local, state, and national government agencies and Portuguese (Brazil) as the most often needed in their education, as well as with government agencies, colleges often do not have schedules that easily NGOs such as the Trade Development Alliance of current business activities. can help effect change throughout the United accommodate working professionals. Seattle and the Harlem Export Assistance Center States. Initiatives such as The Language Flagship in addition to bi-national organizations such as the In predicting needs five years from now, most should be made more visible to business by offering CHALLENGES FACED BY BUSINESS: U.S.-Algeria Business Council. A few small- and participants noted Chinese. Many expect that speeches at conferences (e.g., human resources and UNDERSTANDING OF LANGUAGE medium-sized companies disclosed that they opt it will become the “lingua franca” of Asia in the management conferences) and leveraging business NEEDS BY UPPER MANAGEMENT to staff up incrementally, rather than committing to next decade. Spanish and Hindi/Urdu will take media. In doing so, Flagship alumnis’ skill levels and Ultimately the challenge remains for these full-time staff members with language skills. They on more importance in the future. Most business accomplishments, as well as Flagship’s high standard companies to identify good talent with language noted that this made it hard to build relationships representatives agreed that Portuguese, in the of language proficiency, becomes more visible to skills, either Americans or foreign nationals, and with customers, vendors, and partners overseas due Brazilian market, would become increasingly businesses. Businesses could start immediately retain them for their skills. The lack of understanding to the short-term nature of the arrangement. important, as would languages of Eastern Europe by offering scholarship funds for Flagship students and commitment from upper management to as those markets and workforces become more to study overseas and by offering internships — in recognize the need for language skills internally THE IMPORTANCE OF CULTURE viable for American businesses. Many predicted the United States and abroad — that would allow undermines the support for those skills through Knowledge of the culture of a country and region languages of Southeast Asia to take on more students a professional experience using their improved recruitment of talent and improved is just as important as knowledge of the language. importance (e.g., Vietnamese, Bahasa, Thai, etc.) advanced language skills. compensation plans. Management often considers This is an integral part of a skill set not only for global in the future as these are emerging markets and Improve Communication between language skills a “soft” issue, therefore not requiring professionals, but for any successful professional productive areas for manufacturing. the Business Sector and Education immediate or concerted efforts for change. operating in a U.S.-based multicultural market. As Improve communication between the business sector an example, a company with operations throughout Participants were divided in their perceptions that and education by having business become more As a separate issue, several participants in this Latin America reported the loss of a multi-million English is taking on more importance worldwide. proactive in conveying its needs, relative to language Flagship series noted that English is still an dollar deal because it was not represented by Many felt that the Internet, a great global marketing and cultural skills, to those in higher education and important language around the world and that someone who knew the particular country and tool, is currently not, and will never be, dominated by in the K-12 system. Collaborating with educators businesses should require English language training culture of the potential partner. The employee knew the English language. The presence of languages will create a “pull” factor to bring students with these for non-English speakers working abroad and in Spanish, but not the culture or the specific business on the Internet from growth areas such as Indonesia language skills into careers in business. Additionally, the United States. However, only one person in context. The deal blew up and was lost. Lost deals and India highlights the need for businesses to more communication could affect parents’ and the series remarked that he was satisfied with his resulting from lack of understanding of cultural be able to communicate effectively on the Web in teachers’ knowledge and perception of the important business dealings in English; and was able to sell traits; as well as lost time, productivity, and trust in a variety of languages and at very high levels of role of languages in business. product into Asia very successfully relying on his business relationships hurts the bottom line. Many marketing sophistication. Asian buyers for their knowledge of English. businesses have to rely on translations of documents Effect Change within Corporations to Value or interpretations by third parties during business WHAT ROLES CAN BUSINESS PLAY Language and Cultural Skills CHALLENGES TO SMALL- AND negotiations. As a result, they lose many of the TO EFFECT CHANGE? Encourage corporate management to perceive MEDIUM-SIZED ENTERPRISES (SMES) nuances of the business culture and professional During the Metro Language Series we asked language skills as important to business success. The Language Summits and the Metro Language interactions. With the rise of globalization, more the participants about what role companies and Participants called for creating awareness within Series engaged business participants from Fortune businesses need to be better informed about individual business people can play to respond to their corporations of the critical role of languages by 500 companies as well as from small- and medium- different religions and cultural symbolism, particularly the need for a workforce empowered with language underlining best practices and business successes. sized enterprises (SMEs). The set of challenges concerning marketing campaigns. and cultural skills. Revised hiring, compensation and retention plans

8 9 that reward those with useful language skills would stories. Bring the “cool” factor of high technology PARTICIPATING COMPANIES AND BUSINESS ORGANIZATIONS change their human resources offerings. This would to language education to engage more students. The following is a listing of all the companies and business organizations that participated in the include supporting internal language education Engage professors outside of language education to Metro Language Series (2008) and the Language Summits (2007) sessions. and executive leadership programs. Identifying counsel students on the value of their language skills champions within their companies will promote this in a professional business life (e.g., in engineering, • Acxiom Corporation • Language Learning Solutions message to upper management. business, medicine, law, etc.). Have students • AEP Customer Solutions Centers • Language Line Services certified for their language skills at the university • Aero-Mod, Inc. • Liebert Affect Perceptions of the Value level without having to be literature majors. Influence • Alutiiq International, LLC • McNeil Technologies of Languages among Students, Parents, public perception about the realities and demands • American Systems • Merrill Lynch and the American Public of globalization, while at the same time effecting • Anadarko Petroleum Corporation • Microsoft Corporation Affect the perception of the value of languages change on a local level, with families, educational • Athena Marketing International • Nationwide in business — and in general — among parents, institutions, and individual students engaging in a • Berlitz • Oliva Global Communications students, and the public by making the value of it language education movement. • Booz Allen Hamilton • Oregon Community Credit Union more visible. Talk to parents. Promote success • Bridge360 • Oregon Scientific • Calfee, Halter & Griswold LLP • Oregon Steel Mills • Cascade Microtech • Percipia • Caspio, Inc. • PR Newswire • CH2M Hill • Protostar Ltd., • CommuniCard LLC • Reser’s Fine Foods • Coopetition, Inc. • Raytheon International, LLC • DotSUB, LLC • RF Arrays Systems • Dynasty Resources, Inc. • Right Management • Electrical Geodesics, Inc. • Ryder/North Texas District Export Council • FedEx Trade Networks, Trade Services • Southwest Airlines • FEI Company • Starbucks Coffee Company • General Dynamics Information Technology • Sterling Commerce, an AT&T Subsidiary • General Motors Corporation • Studio One Networks • Globalization Partners • TCS Expeditions • Grange Insurance • The Boeing Company • Growth-Link Overseas Company • The Port Authority of New York City • Harlem U.S. Exports Assistance Center/ & New Jersey U.S. Department of Commerce • The Regence Group • Hilton Hotels Corporation • Trade Development Alliance of Greater Seattle • Htec Systems, Inc. • TS Tech North America, Inc. • IBM • TZ Medical • IBM Almaden Research Center • UPS • International Trade and Economic Development • U.S.- Algeria Business Council Division of Community, Trade, and Economic • U.S. Bank Development (CTED) • Vorys, Sater, Seymour & Pease LLP • Knowledge Learning Corporation • Wal-Mart • Language Access Network • Web Head Group

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