Cracking the Euro Code

The continued integration within the European Union and the introduction of the euro will accelerate the growth of joint ventures and partnerships within its territory and across its borders. However, many of these costly and time-consuming initiatives fail to deliver the desired results because the companies involved are not prepared for the cultural differences and distinct business styles in the new markets.

Culture, often derided as that 'soft, mushy stuff', is all too real. The ability to communicate with people from other cultures and achieve what you want from meetings and negotiations are key skills in a global economy. Business winners in the new Europe will be those who recognise and understand cultural differences, then work round them by getting the best from each.

What do we mean by 'culture'?
Culture is the framework that provides people with their identity and helps them distinguish one group of people from another. Culture establishes a unique set of formal and informal rules for how we think, and behave and what we assume to be true. Each nation has values and beliefs which are passed from generation to generation and shape our social and business behaviour.

How to prepare for your trip
Many people do not prepare for the international meetings and negotiations they will have to face. Whether in Paris or Tokyo, they simply conduct themselves as they would at home. We recommend that you find out as much as possible about the country you are going to. It might be a good investment to do some language training or attend a specific country briefing at Farnham Castle.

One of the most important things to remember is that there is not necessarily one right way of doing things. The answer is to understand and respect cultural differences. Empathy is the key.

Western European Business Cultures, Practices and Etiquette
Our Western European neighbours have solid education systems and management is usually educated to university level. Academic titles are not generally important except in Germany and Austria. Be sure you get the name and title right.

In Germany, companies are quite hierarchical and task-orientated with a structured approach. Punctuality is highly valued and seen as a sign of respect. Business culture is relatively formal, communication is direct and German managers speak their mind. Successful meetings follow a clear agenda and items are dealt with in a decisive and clear manner. Avoid interrupting unless you need urgent clarification. Germans are willing to take decisions within meetings but they tend to be cautious, so it is important to be factual, provide sound information and come well prepared. Do not use humour during meetings ‰ tell them your funny stories afterwards.

In France the business culture is very hierarchical and the French take a flexible and dynamic approach. Punctuality is valued, but on social occasions one is expected to turn up 10 to 15 minutes late. The priority is to establish a relationship, then get on with the tasks. Communication is polite, relatively formal and the approach is intellectual, indirect and sophisticated. To the French, preparation means being able to conduct a coherent argument founded on faultless logic and they are comfortable with robust and direct exchanges. Meetings often consist of ongoing discussions that do not always reach a conclusion. There is much less horizontal exchange of information than in British firms. The French often see meetings as a place to develop ideas, for the bosses' subsequent approval. Consequently, managers are less willing to take risks. If invited to lunch or dinner avoid raising issues regarding your meeting until the end of the meal.

In the Netherlands and Scandinavia hierarchical systems are flat and boundaries between management levels are flexible. People will cut across reporting lines if necessary and the boss is 'one of the team'. Relationships between all levels are generally open and tolerant. Open dialogue and team spirit are highly valued. Punctuality and a structured agenda are appreciated. The decision-making process and the need to reach consensus may appear slow and frustrating. But once a decision is made the implementation is generally quick and efficient. The pragmatic Dutch are open and direct, and may even be considered aggressive by people from more formal societies. Swedes are very team-orientated and reluctant to contradict colleagues. A meeting in Finland means lots of coffee, saying only what is absolutely necessary and listening patiently without interrupting.

Italy and Spain have great regional varieties. Manners and behaviour vary between Rome and Milan. There is a marked difference between Madrid and Barcelona. However, some features of business culture hold throughout Italy and Spain.

In Italy it is advisable to confirm meetings in writing well in advance as Italians tend to prefer this to a phone call. The pace of meetings and negotiations is generally slower than elsewhere in Europe. Meetings are regarded more as a platform for exchanging ideas than making decisions. Be flexible ‰ things can change overnight.

To establish a business relationship in Spain takes time and may involve long lunches and dinners, and a readiness to accept local eating hours. Be prepared for unexpected delays in negotiations. It is acceptable to interrupt during meetings and discussions may be lively. Dignity is valued and it is important not to lose face.

Entertaining is regarded as an important part of getting to know your business partner but business lunches may be quite frugal in the Nordic countries and the Netherlands. Business people in most European countries people guard their privacy so don't phone an executive after office hours or during the weekend without permission.

Business cards
In most European countries there is no set time to exchange business cards, although most people tend to do so when they meet. As a general rule, treat your business partners' cards with respect.

Women in business
Women are slowly making inroads into the upper echelons of European business but there are some very distinct cultural differences. Women in Scandinavia, France and Great Britain are well represented, although they may experience difficulties in reaching director or senior management levels. Italy, Spain and Portugal have some very successful businesswomen, usually in family-owned companies, but few women in management and the professions. Women in Germany, Austria and the otherwise egalitarian Netherlands generally find it very difficult to make it to the top. These countries are surprisingly chauvinistic about women in business and female managers are rare. Married women tend to give up work when they have children, as there are very few social systems in place to help working mothers.

Business wear
We need to tailor our message to our specific audience - and that applies to our wardrobe too! A dark suit and a tie for men and a shirted suit or trouser suit are still the standard uniform for women. In many countries a jacket with tie is acceptable for men. Italian, Spanish and French executives tend to be more fashion conscious and being well dressed is especially important in these countries. The dress code for men and women in Germany, the Netherlands and Scandinavia tends to be less formal but still stylish. When travelling during the winter, especially in Scandinavia and Alpine regions, you may require warm winter shoes, boots and coats.