Doing Business in Europe - an Etiquette Primer for Americans

The Opportunity

You're an American businessperson whose company is expanding into European markets. Or your company is acquiring or has been acquired by one. Or you're courting a supplier or venture capitalist from Europe. In any case, you want to make good impression.

You've heard the rumors that Americans are thought to be, well, somewhat less than cultivated. And it's true that American businesses often place more stock in talent and skills than they place in polish and style- we've all seen American managers who are brilliant strategist but rudely answer cell-phone calls or type in their PDAs while having discussions with their subordinates. We know a defense attorney who has a stellar record in spite of (or perhaps because of) his unkempt appearance. (Maybe it's disarming to jurists?) And we all know talented computer wizards who earn outrageous salaries going to work in jeans and flip-flops every day.

In Europe, dress, manners and demeanor are more important than they are in the States. But as business here becomes more global and as businesses become more competitive, even the most casual Americans are learning that there are benefits to having the more cordial manners of their European counterparts.

The Solution

There are some rules and standards of etiquette in Europe that are puzzling to Americans at first, and we cover some of those in this article. There are also some fairly simple rules of thumb that will spare you some awkward moments and prevent unintentional offenses.

Dress

For the past few years in the United States, businesses have been tending toward "business casual"- meaning polo shirts and casual slacks for men and women. In the recent few months, most industries are gearing back to a more "dressed up" appearance - blazers and slacks (if not a coat and tie) for men and more corporate pantsuits and dresses for women; although many workplaces still have "casual Fridays."

As far as we know, there are no "casual Fridays" in Europe. A dark-colored coat and tie with a light shirt for men; and more formal skirt and pantsuits for women are de rigeur. Anyone wearing something less formal might be seen as someone who does not take his business very seriously, or who has too little respect for the people he's meeting with to spend the time on his appearance.

Business Interactions

Typical business interactions are more effective (and more enjoyable!) if you consider some cultural differences such as titles and introductions, language differences, differences in organizational structure and philosophy, and issues of style in matters such as taking blame and giving credit, giving compliments, and resolving differences of opinion.

Titles and Introductions

In the U.S., if you work for the same company as someone else, you can pretty much take for granted that you're on a first-name basis with them. Everyone from the CEO to the janitor is addressed by first name only, even if you're barely acquainted with them. That often transcends companies, and anyone who calls you Mr. or Ms. is probably trying to sell you something.

The opposite is true in Europe. Calling someone by their first name (unless invited to do so) is considered presumptuous and too familiar for business interactions. Courtesy titles and last names are the norm.

Introductions are also very different. In the U.S., introductions are almost an afterthought- you get "introduced around" an office if you're new to the company, and introductions in meetings are cursory if done at all.

In Europe, introductions are very important, and they follow the old rules of introducing the "less important" person to the more important one. If Mr. Smith is the owner of the company you work for, and Mr. Jones is your newly-hired colleague, an introduction would be as follows:

"Mr. Smith, I'd like to introduce you to Mr. Jones."

If you are standing when an introduction is made, shake hands (firmly, please!) with the person you're introduced to. If you are sitting, stand up, face the person, and shake hands. Always stand when making introductions yourself.

In meetings, formal introductions may be made before the meeting before the participants take their seats, or everyone may go around the table and introduce himself or herself, (while seated) but a meeting is never begun if there are any participants that have not formally met. Follow the lead of the meeting host, or if you are hosting a meeting, ensure that introductions take place before addressing any items of business.

Language

You may be told by a company that all business will be conducted in English, so there is no need to learn a second language. You will find, however, that there are differences in structure and usage between American English and "European business English."

Language is more formal, and although there may be some slang (especially in new fields like computers) it's best to avoid American slang and newer words.

The structure of sentences is a little different. The adjectives often come after the noun.

Take these differences in stride, and try to adapt your style of speaking and writing to the people you're doing business with. It's much more effective to communicate in he the way the majority of people are comfortable with than to try to change things to the style you may be more used to.

Organizational Structure and Philosophy

Companies in the U.S. have been tending in the last few years away from hierarchical systems and are more "flat" in style and structure. Senior managers might inhabit cubes the same as regular staffers, everyone is on a first-name basis, and everyone's opinion carries equal weight if the idea has merit. In Europe, things are a bit more traditional and people are more deferential toward people who have "earned their stripes." It's fine to put forth ideas if you're not the "top dog," the only difference is in the style of communication. It's much more effective to give suggestions than to pronounce opinions. (Note- although few would admit to it, this style often works better in the U.S., too!)

In the U.S., managers often listen to discussions of team members and say very little- allow the team members to come to a resolution themselves, and only facilitate discussion, resolve issues, or provide information as necessary. In Europe, managers are expected to be active participants, actively asking questions during the entire process. Otherwise they may appear to be uninterested or not knowledgeable.

Take Blame and Give Credit

In the 1930s, an American named Dale Carnegie wrote about the practice of taking blame for things that go wrong and giving credit for things that go right. Unfortunately, too few Americans seem to have taken his advice. But Europeans have! (Or maybe it was their practice all along and Mr. Carnegie happened to be the one to pass that along in the States. )

By admitting fault quickly and emphatically when you've made an error, you immediately take the antagonism out of a problem, and everyone's focus turns more quickly to a solution rather than fault-finding.

Once when I was new at a company and putting together a web page, it was discovered that the search criteria didn't work as expected. Although I wasn't sure what was wrong with it, I admitted in an e-mail- "This is the first time I've done this, so I may have made an error on the page." One of my colleagues immediately fired off an e-mail to everyone involved indicating that there was absolutely nothing wrong with my coding and there must be another problem. It was discovered that there was a problem with the search mechanism (not the page.) If I had not admitted fault (even incorrectly!) or had been defensive about my work, these people would still be wondering if there was something wrong with the code, coming from a "green" programmer as it were.

Passing along credit is even more effective than taking it for yourself. If a project goes well and you are congratulated, it is much more charming and effective to say "Thank you, but the administrative staff set it up beautifully" or "The programmers did all the work." The administrative staff or the programmers will appreciate it, and the person congratulating you will think more rather than less of you for passing along credit.

Compliments

Another thing that Mr. Carnegie wrote about that seems more common in Europe than America is the practice of giving compliments.

In America, compliments are often seen as passe' or condescending. Complimenting someone is seen as unnecessary. People refrain from pointing out things about differences in people's dress, practices or cultures. Some men refrain from complimenting women colleagues in particular because they are trying to be "politically correct."

Everyone likes to hear nice things about himself or herself, regardless of where they are in the world. But in Europe in particular, giving compliments is a perfectly acceptable and even expected mode of interaction. Compliments can be very simple- admiring someone's taste in office furnishings (assuming you really DO like their office) or complimenting someone on their proficiency with the computer or complimenting their analysis of a situation. Many Europeans for whom English is a second language particularly like to be complimented on their grasp of English by Americans. (And often their English is better than ours! See notes on language.)

Being genuinely interested in other people, and expressing sincere compliments is a practice that is much more common in Europe but is effective in developing rapport with people anywhere.

Differences of Opinion

In the U.S., it is common practice at many companies to have spirited arguments in hallways and boardrooms. People that disagree with one another may use strong language or even raise their voices. In teams of people that have been working together for a long time, this is often seen as a healthy airing of opinions and no one takes the disagreement personally.

In Europe, however, differences of opinion are handled more decorously. If you disagree with someone, it is typically more effective to start with the points you agree on and work toward the differences.

"I agree that this advertising strategy will be expensive, and I understand your concerns that this year's budget numbers will not support extravagance. However, I think that my idea may not cost as much as it might first appear."

Handling differences of opinion in a more diplomatic fashion will be much more effective in Europe. And probably in the U.S., as well.

Meetings

Meetings in the U.S. are often brief, to the point, and may seem abrupt to people new to the company. There is often a focus on a particular problem or agenda item that people dive right into and attack from all sides. One company I worked for had fifteen minute meetings every morning to give status on the previous day's results and the coming day's planned activities. At exactly 8:30 someone would yell "Time!" and the meeting would adjourn- anything unsettled from the meeting was postponed to the following day's meeting or assigned to someone to resolve immediately. It was a remarkably efficient use of time and everyone got immediately about their business without taking up too much of their day. It was also abrupt to the point where newcomers to the company considered it rude and even offensive, especially if they had something they felt warranted further discussion.. Efficient companies often schedule meetings before 9:00 a.m. and after 5:00 so as not to interfere with "work time."

People in meetings in the U.S. often "multi-task"- answering cell phone calls and pages; or responding to e-mail on their digital devices or taking notes.

Meetings in Europe are generally more relaxed. Introductions are never neglected, and meetings often start with a joke or a "brain teaser" puzzle or activity to get everyone involved and thinking together. Meetings are seldom scheduled before 10:00 a.m. or after 3:00 p.m., in deference to people's family or social activities.

Often, a significant amount of meeting time is used in setting up ground rules, determining the purpose and expected outcome of the meeting, and so forth, especially when there are people from several cultures involved.

People participating in meetings in Europe are expected to be involved in the conversation, not buried in their digital device or steno pad. They demonstrate interest and attentiveness to the person speaking with their body language and by asking relevant questions.

Dining

Dining in the United States is often a rushed activity. Meeting someone over breakfast or lunch is often informal and hurried. People eat and talk efficiently, and are done in an hour or less. Restaurants in the U.S. cater to this, and serve food quickly and do business by getting people in and out as efficiently as possible to make room for more customers. When entertaining a client, either you or the client may suggest the restaurant, people make selections from the menu for themselves (seldom asking advice, or giving it.)

In Europe, dining is a more relaxed event. When dining with Europeans in Europe, it's best to take your host's advice in the selection of food and wine at a restaurant they know well. (Food allergies or serious dislikes aside, of course!) One does not talk about business immediately. Let your host set the tone and the pace of the meal. Several courses and a significant amount of time may pass before business topics are brought up. Relax and enjoy, and of course, compliment the parts of the experience you enjoy. The rule of thumb is "do not discuss business before the wine and cheese."

Conclusion

This was not intended to be a value-comparison of American vs. European ways of doing business, although naturally there are good and bad points to different ways of doing things. But by being aware of the differences, and making small adaptations to style, Americans can accomplish objectives much more effectively and forge some richly satisfying relationships with people and businesses in Europe.