When Cultures Collide: LEADING ACROSS CULTURES Richard D. Lewis Nicholas Brealey International 31573 01 i-xxiv 1-176 r13rm 8/18/05 2:56 PM Page i # bli d f li 31573 01 i-xxiv 1-176 r13rm 8/18/05 2:56 PM Page ii page # blind folio 31573 01 i-xxiv 1-176 r13rm 8/18/05 2:56 PM Page iii ✦ When Cultures Collide ✦ LEADING ACROSS CULTURES # bli d f li 31573 01 i-xxiv 1-176 r13rm 8/18/05 2:56 PM Page iv page # blind folio 31573 01 i-xxiv 1-176 r13rm 8/18/05 2:56 PM Page v ✦ When Cultures Collide ✦ LEADING ACROSS CULTURES A Major New Edition of the Global Guide Richard D. Lewis # bli d f li 31573 01 i-xxiv 1-176 r13rm 8/18/05 2:56 PM Page vi First published in hardback by Nicholas Brealey Publishing in 1996. This revised edition first published in 2006. 100 City Hall Plaza, Suite 501 3-5 Spafield Street, Clerkenwell Boston, MA 02108, USA London, EC1R 4QB, UK Information: 617-523-3801 Tel: +44-(0)-207-239-0360 Fax: 617-523-3708 Fax: +44-(0)-207-239-0370 www.nicholasbrealey.com www.nbrealey-books.com © 2006, 1999, 1996 by Richard D. Lewis All rights reserved. No part of this publication may be reproduced in any manner whatsoever without written permission from the publisher, except in the case of brief quotations embodied in critical articles or reviews. Printed in Finland by WS Bookwell. 10 09 08 07 06 12345 ISBN-13: 978-1-904838-02-9 ISBN-10: 1-904838-02-2 Library of Congress Cataloging-in-Publication Data Lewis, Richard D. When cultures collide : leading across cultures / Richard D. Lewis.—3rd ed. p. cm. Rev. ed. of: When cultures collide : managing successfully across cultures. Includes bibliographical references and index. ISBN-13: 978-1-904838-02-9 (13-digit isbn, pbk : alk. paper) ISBN-10: 1-904838-02-2 (pbk : alk paper) 1. International business enter- prises—Management—Social aspects. 2. Management—Social aspects. 3. Intercultural communication. I. Title. HD62.4.L49 2005 658'.049—dc22 2005022299 page # blind folio 31573 01 i-xxiv 1-176 r13rm 8/18/05 2:56 PM Page vii To Jane, Caroline, Richard and David, multicultural all... # bli d f li 31573 01 i-xxiv 1-176 r13rm 8/18/05 2:56 PM Page viii page # blind folio 31573 01 i-xxiv 1-176 r13rm 8/18/05 2:56 PM Page ix Contents ✦ Preface to the Third Edition: Us and Them xv Acknowledgments xxiii PART ONE Getting to Grips with Cultural Diversity 1 Different Languages, Different Worlds 3 Appearance and Reality 3 Concepts and Notions 4 Powerful Mental Blocks 7 Language Straitjacket 9 Thought = Internalized Language 11 Humor across Frontiers 12 Humor in Business 14 Making Allowances 15 2 Cultural Conditioning 17 What Is Culture? 17 Culture Shock 19 Who Is Normal,Anyway? 21 It Depends on Our Perception 22 3 Categorizing Cultures 27 Cultural Categories at Cross-Century 27 Linear-Active and Multi-Active Cultures 29 Reactive Cultures 32 Intercategory Comparisons 38 Fine-Tuning Categorization 43 Moving along the LMR Planes 46 Data-Oriented, Dialogue-Oriented and Listening Cultures 48 4 The Use of Time 53 Linear Time 53 Multi-Active Time 55 Cyclic Time 57 Chinese 58 Japanese 59 # bli d f li 31573 01 i-xxiv 1-176 r13rm 8/18/05 2:56 PM Page x x CONTENTS Back to the Future 60 Validity of Time Concepts 62 5 Bridging the Communication Gap 63 Use of Language 63 The Communication Gap 66 Communication Patterns during Meetings 67 Listening Habits 69 The Language of Management 71 6 Manners (and Mannerisms) 81 Sincerity Helps 82 Dining Etiquette 83 Cocktail Parties 87 Restaurant Behavior 90 Manners in Society 93 PART TWO Managing and Leading in Different Cultures 7 Status, Leadership and Organization 101 Success or Failure in the Twenty-First Century 101 Leaders 104 Changing Notions of Leadership 105 Cultural Roots of Organization and Leadership 105 Different Concepts of Status, Leadership and Organization 111 8 Team Building and Horizons 125 Team Building 125 Innovation and Change 125 Life within Horizons 128 The Education Factor 131 Language and Culture 132 Horizons, Common Ground and Divergence 133 National Strengths, Insights and Blind Spots 135 Team-Building Exercises 139 9 Motivating People and Building Trust 141 Twenty-First Century Aspirations 142 Product versus Relationship 143 Building Trust 144 High-Trust and Low-Trust Societies 145 Trust in Virtual Teams 148 31573 01 i-xxiv 1-176 r13rm 8/18/05 2:56 PM Page xi CONTENTS xi 10 Meetings of the Minds 153 Beginnings 153 Structuring a Meeting 154 Meeting Behavior and Comportment 156 Body Language 157 Negotiating 161 Decision Making 170 Contracts 172 Solutions 174 PART THREE Getting to Know Each Other English-Speaking Countries 11 United States of America 179 12 Canada 186 13 Britain 194 14 Ireland 201 15 Australia,New Zealand, and South Africa 205 Australia 205 New Zealand 211 South Africa 215 Western European Countries 16 Germany 223 17 Austria 233 18 Switzerland 238 19 The Netherlands 243 20 Belgium 251 21 France 256 22 Italy 262 23 Spain 269 24 Portugal 274 25 Greece 279 Central and Eastern European Countries 26 Poland 282 27 Hungary 288 28 The Czech Republic 293 29 Slovakia 297 30 Slovenia 302 31 Croatia 307 32 Serbia and Montenegro 312 31573 01 i-xxiv 1-176 r13rm 8/18/05 2:56 PM Page xii xii CONTENTS 33 Bulgaria 318 34 Romania 324 Nordic Countries 35 Finland 330 36 Sweden 337 37 Norway 344 38 Denmark 350 The Baltic States and Central Asian Countries 39 The Baltic States 356 Estonia 357 Latvia 362 Lithuania 367 40 Russia 372 41 Central Asia 380 Kazakhstan 381 Uzbekistan 385 Kyrgyzstan 388 Turkmenistan 388 Tajikistan 389 Azerbaijan 389 Middle Eastern Countries 42 Turkey 389 43 Iran 395 44 The Arab Countries 400 Algeria 407 Bahrain 407 Egypt 408 Jordan 410 Kuwait 410 Lebanon 412 Libya 412 Mauritania 413 Morocco 414 Oman 415 Qatar 416 Saudi Arabia 416 Sudan 418 Syria 419 Tunisia 420 United Arab Emirates 420 31573 01 i-xxiv 1-176 r13rm 8/18/05 2:56 PM Page xiii CONTENTS xiii The West Bank and Gaza 422 Yemen 422 45 Iraq 423 46 Israel 427 Asian (South, Southeast, East) Countries 47 India 434 48 Pakistan 440 49 Bangladesh 445 50 Southeast Asia 451 51 Indonesia 454 52 Malaysia 460 53 Singapore 464 54 Thailand 469 55 The Philippines 475 56 Vietnam 480 57 China and Hong Kong 480 China 485 Hong Kong 497 58 Korea 502 59 Japan 509 Latin American Countries 60 Latin America 520 61 Argentina 524 62 Mexico 531 63 Brazil 540 64 Chile 546 65 Venezuela 551 66 Colombia 556 Sub-Saharan African Countries 67 Sub-Saharan Africa 563 Epilogue 576 Bibliography 585 Glossary 589 Index 595 31573 01 i-xxiv 1-176 r13rm 8/18/05 2:56 PM Page xiv page # blind folio 31573 01 i-xxiv 1-176 r13rm 8/18/05 2:56 PM Page xv Preface to the Third Edition ✦ Us and Them I was once in charge of an English language summer course in North Wales for adult students from three countries—Italy, Japan, and Finland. Intensive instruction was relieved by entertainment in the evenings and by day excursions to places of scenic or historical interest. We had scheduled a trip up Mount Snowdon on a particular Wednesday, but on the Tuesday evening it rained heav- ily. Around 10 o’clock that night, during the after-dinner dancing, a dozen or so Finns approached me and suggested that we cancel the excursion, as it would be no fun climbing the muddy slopes of Snowdon in heavy rain. I, of course, agreed and announced the cancellation. Immediately I was surrounded by protesting Italians disputing the decision. Why cancel the trip—they had been looking forward to it (escape from lessons), they had paid for it in their all-inclusive fee, a little rain would not hurt anyone and what was the matter with the Finns anyway—weren’t they supposed to be tough people? A little embarrassed, I consulted the Japanese contingent. They were very, very nice. If the Italians wanted to go, they would go, too. If, on the other hand, we cancelled the trip they would be quite happy to stay in and take more lessons. The Italians jeered at the Finns, the Finns mumbled and scowled, and eventually, in order not to lose face, agreed they would go. The excursion was declared on. It rained torrentially all night and also while I took a quick breakfast. The bus was scheduled to leave at half past eight, and at twenty-five past, taking my umbrella in the downpour, I ran to the vehicle. Inside were 18 scowling Finns, 12 smiling Japanese, and no Italians. We left on time and had a terrible day. The rain never let up, we lunched in cloud at the summit, and returned covered in mud at 5 o’clock, in time to see the Italians taking tea and # bli d f li 31573 01 i-xxiv 1-176 r13rm 8/18/05 2:56 PM Page xvi xvi WHEN CULTURES COLLIDE chocolate biscuits. They had sensibly stayed in bed. When the Finns asked them why, they said because it was raining... Getting to Grips with Cultural Diversity Cultural diversity is not something that is going to go away tomorrow, enabling us to plan our strategies on the assumption of mutual understanding.