If, while on an overseas business trip, you’ve ever poked inquiringly at something unidentifiable on your plate, author Andrew Kakabadse knows how you feel: He survived 21 consecutive toasts with 60-proof rice wine at a business dinner in China. By the end of the dinner, only he and the local provincial minister were still standing. Along with his co-author, Nada Kakabadse, he uses the metaphor of the rice wine test to explain the challenges that global corporate leaders face in dealing with a seemingly homogenized business world that is diverse, complex and sometimes baffling in reality.
Appreciating Differences
Technology and globalization have drawn the world closer together. Western media and products permeate even the remotest corners of the globe, and “heterogeneity rules the global roost,” particularly in business. However, the morals, values and rituals people hold onto in their communities, regions and countries remain steadfast. Therefore, leaders of global firms need new skills and a greater awareness of the world around them to operate successfully across borders. For example, before business negotiations begin in China’s Hunan province, participants must first down numerous shots of potent Maotai, a 60-proof rice wine – neat, no chaser. While this certainly is a test of your ability to process lots of alcohol and remain coherent, the real test is to see if you merit your hosts’ confidence and their business. Joining a local rite tells your colleagues you value them and their traditions; refusing to imbibe says you’re not trustworthy.
Three factors, “reach,” “readiness” and “roll-out,” are crucial to successful international business leadership. Global executives must “reach out to embrace new experiences, knowledge...cultures...[...
Andrew Kakabadse, a professor at Cranfield University’s School of Management, and Nada Kakabadse, a professor at the University of Northampton Business School, both write extensively on leadership and corporate governance.
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