Doing Business in The USA
More than any other industrialized country, the United States has adopted
what could be labeled a 'scientific' approach to business. Every aspect of
commercial life is studied and analyzed and this scientific approach is both
respected and acted upon. Far more resource is available in the US for the
study of the methodology of business than in any other country and most new
management theory and doctrines have their origins in the States.
In the States everything is quantified and assessed. All processes, even
down to such issues as HR and Training are analyzed in a detailed manner and
the results of this analysis carry weight with decision makers.
This 'scientific' approach - the constant search for better, more effective
methods - has led to a business environment typified by the presence of
change as a constant factor. The most common response to a changing
environment is realignment of the organization and this, in turn, has
produced a work force in a state of constant flux. People leave, are fired
or made redundant and then reappear in another organization. This sense of
employee mobility should not, however, be equated with a lack of loyalty to
the employer for whom you are currently working. Whilst working for the
company you put everything into the job and are totally committed.
American Business Structures
Business structures in the USA are incredibly varied but tend to have
several characteristics in common.
Firstly, the company is an entity in its own right and exists independently
from its employees. Members come and go, perform necessary tasks at
particular points in the life cycle of the company and then leave when no
longer required for the wellbeing of the organization. The relationship
between employer and employee is a transactional one — where relationship
and sentiment are a luxury which cannot be justified.
Secondly, the CEO of an American organization holds great sway within the
company. Senior management is more embedded in the personality at the top
than in some other countries, such as Germany, where senior management is
collegiate in approach. Although the company will have a Board of Directors,
the Board is highly unlikely to have any input on the day-to-day running of
the company which is left very much in the hands of the CEO who stands or
falls on results.
Thirdly, accountability within the company tends to be vertical and easily
observable. Americans like to know exactly where they stand, what are their
responsibilities and to whom they report.
American Management Style
American management style can be described as individualistic in approach,
in so far as managers are accountable for the decisions made within their
areas of responsibility. Although important decisions might be discussed in
open forum, the ultimate responsibility for the consequences of the decision
lies with the boss — support or seeming consensus will evaporate when things
go wrong. The up side of this accountability is, of course, the American
dream that outstanding success will inevitably bring outstanding rewards.
Therefore, American managers are more likely to disregard the opinions of
subordinates than managers in other, more consensus or compromise- oriented
cultures. This can obviously lead to frustrations, which can sometimes seem
to boil over in meeting situations. (See 'Approach to meetings' below.)
Titles can be very confusing within American organizations with a
bewildering array of enormously important-sounding job descriptors on offer
(Second Vice-President etc.). Titles, in any case, tend to be a poor
reflection of the relative importance of an individual within a company.
Importance is linked to power, which could be determined by a number of
factors such as head-count responsibility, profitability of sector or
strategic importance to the organization at that point in time.
American Meetings
When asked to describe meetings in the USA, a word which Americans often use
is 'aggressive'. This 'confrontational' approach, (where openly and directly
debating all the relevant issues even at the expense of personal
relationships is valued, ) is very alien to those cultures who always put
diplomacy and harmony at the heart of their approach to meetings.
Of course, many cultures mistakenly see this direct approach between
colleagues as a sign of bitter, personal animosity — which it always
invariably is not. It is endemic to the American approach to communication
in meetings and is seen as a positive step towards addressing whatever the
vital and pressing issues might be. Time pressured, ambitious American
business executives do not have time for the vagueness, diplomacy and lack
of focus which they perceive as typifying meeting situations in such diverse
cultures as the UK and Japan.
Meetings often include formal presentations by one or more of the
participants and these presentations are a vital element in the
demonstration of professional competence. Thus, presentations should not
only be relevant and well researched but also delivered in a positive,
enthusiastic and committed manner. The meeting and especially one in which a
presentation has to be made, is seen as an opportunity to impress —
important if personal success is to be achieved.
American Teams
In the States, teams are groups of individuals brought together for the
moment to complete a given task or project. During the period that the group
is together, everybody is expected to be fully committed to the common goals
and to work with dedication and purpose to ensure that those goals are
achieved. It is important to show enthusiasm for the project and to show
belief in the ultimate achievement of the objectives. ‘Old World’
cynicism is not really appreciated or understood.
When the project is complete, the team will rapidly dissipate, its members
moving on the next task with equanimity. To break up a team in the fluid
employment environment of the USA is less traumatic than in other
group-oriented cultures where identity is subsumed to the group. In the
States, teams are expected to be transitory in nature.
American Communication Styles
Communication styles in business in the States are determined by many of the
approaches to business we have already described above. The desire to debate
issues directly and openly leads Americans to be seen by some cultures as
aggressive and even rude. Coded speech and verbosity is often seen as time
wasting and in time pressured corporate USA, that is a crime.
Thus, when an impasse is reached in meeting situations, the reaction is
often to address it directly and ‘with feeling.’ This direct, robust
debate can often be viewed by more harmony seeking cultures as signalling
the breakdown of meaningful discussions and as the signal to try to abandon
the interaction - whereas in the States it is seen positively and as a sign
of definite progress.
Paradoxically, on first introductions, American can seem very friendly,
polite and solicitous of your well being which seems to be at odds with the
verbal behaviour exhibited half an hour later in the meeting. This overt
friendliness (Have nice day!, Hi, how are you doing? etc.) should be taken
for what it is — part of the protocol of the language and not as an attempt
at establishing a life long friendship.
Although coded speech and over-verbosity are frowned upon, the latest
‘management speak’ is often to the fore in business dealings which can
make Americans sound extremely jargonistic — almost to the point of
obscuring the real message.
Americans are much more open in conversation about private affairs than many
European cultures and the converse of this is that Americans will often,
quite naively, ask very personal questions at an early stage in a
relationship which may be perceived by some people as intrusive. (‘What do
you make?)
Women in Business in The USA
Women play an active part in business in the US and have done so for many
years. Although progress to the boardroom might still be more difficult than
for a man, a large percentage of American executives are women and this
percentage is rising year on year.
It is important to be seen to be ‘politically correct' on gender issues in
the workplace. Treat a woman as you would a man in all business dealings —
any perceived stereotyping would be regarded very badly.
American Dress Code
Describing dress codes for men travelling on business in the States can be a
risky business. It is far more difficult to generalise on this subject than
for just about any other major industrialised nation. Dress will vary from
the formal, dark business suit, shirt and tie to literally T-shirt and
shorts.
One general dictum could be that the further West you are doing business,
the more likely you are to encounter informal dress in business - but this
is not always the case.
The best advice would always be to check before departure with others who
have visited your particular destination - failing that, take a variety of
types of clothes to meet all eventualities.
Dress code for women is as varied as that for men and the above advice would
hold true.
The USA
Top Tips on USA Business Culture
Tip 1
Americans value straight talking and 'getting to the point'.
Tip 2
Respect is earned through conspicuous achievement rather than through age or
background.
Tip 3
Self-deprecation is often misunderstood by Americans as a sign of weakness.
Sell your plus points.
Tip 4
Humour is frequently used in business situations but is unlikely to be
appreciated when matters become very tense.
Tip 5
Remember that time is money in the States - wasting people's time through
vagueness is lack of a sense of purpose which will not produce good results.
Tip 6
Compromise is often sought - at the brink. This can often equate to the end
of a quarter or financial year.
Tip 7
Do not be offended by seemingly overly personal questions.
Tip 8
Dress code in the States is very variable - check on the appropriate mode
before departure.
Tip 9
Short-termism is endemic. Structure proposals to emphasise quick wins rather
than long-term objectives (although these should also be included.)
Tip 10
You may encounter an 'American is best' view to doing things - be prepared
to counter this with quantitative and qualitative counter- arguments.
Tip 11
Many Americans never leave the States. Be prepared for a parochially
American view of the world.
Tip 12
Enthusiasm is endemic in business. Join in. Do not exhibit a jaundiced, 'old
world' approach as this will be interpreted as defeatist.
Tip 13
New is good. Change is ever present in American corporate life and therefore
so is the easy acceptance of new ideas, new models etc.
Tip 14
Gift giving is unusual in the States and many companies have policies to
restrict or forbid the acceptance of presents.
Tip 15
Americans tend to work longer hours and take fewer days of vacation than
their European counterparts.
Tip 16
Try to be punctual for meetings - if you are late apologise.
Tip 17
Despite the seeming lack of hierarchy within an American organisation, the
boss is the boss and is expected to make decisions and is held accountable
for those decisions.
Tip 18
Americans often socialise with work colleagues outside the office - and this
often includes the family.
Tip 19
Titles are an unreliable guide to relative importance within an organisation
due to their proliferation.
Tip 20
Business is a serious thing in the States and it is important that you are
seen to be serious in your intent and commitment.
Successful Entertaining in The USA
The timing of business meals in the USA can often come as a surprise to
first time visitors. Firstly, it is not uncommon to be invited to a
breakfast meeting which might start as early as 7:00am and secondly, if
invited for dinner, this may be scheduled for as early as 5:30 — 6:00pm. You
can also, of course, be invited for lunch and this is probably the favored
time for business entertaining.
US business people have few qualms about discussing concrete commercial
issues over a meal. The idea that the mealtime is set apart from business
and that it is unmannerly to raise the subject of commerce over food is an
alien concept in the States. Therefore, it is acceptable to view a business
meal as an extension of the business meeting. (This does not mean that
other, non-business issues, cannot be discussed at these events.)
North Americans tend to only use the knife to cut food items. After the food
has been cut, the knife is usually laid down and only the fork is then used.
Some foods may be eaten by hand, with both the knife and fork laid to rest.
Most restaurant staff rely heavily on tips to supplement their basic salary
and tipping is therefore virtually mandatory. It is not uncommon for tips of
between 10% - 20% to be left for good service provision — and the service is
usually very good.
American Facts and Figures
|
The USA in Figures |
|
|
Land Area |
9, 372,600 sq km
|
|
Population: |
297m
|
|
Population density: |
31 sq km
|
|
Life expectancy: |
Men 75 yrs |
|
Adult literacy: |
99% |
|
Average per household |
2.6 |
|
Divorces per1,000 : |
4.8 |
|
The Economy |
|
|
Currency: |
US dollar |
|
GDP: |
US$11,712bn |
|
GDP per heads: |
US$39,430 |
|
Employment (% of total): |
Agriculture 2%
|
|
Main Exports:Type: |
Capital goods exculding vehicles
|
|
Destinations: (% total) |
Canada 23%
|
|
Main Imports:Type: |
Consumer goods exculding vehicles
|
|
Main countries of origin: |
Canada 17% |
