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Business etiquette is now a multi-billion dollar industry. An awareness of international business and social etiquette issues is now a key component of modern corporate culture. This explains why senior management of leading companies are now spending large sums of money on ensuring their executives have an understanding of the accepted rules of engagement in the countries in which they do business. We are talking here about how to communicate effectively. Obviously, good communication with existing markets is vital to ensuring lasting business. However, in order to penetrate new markets and establish strong relationships with potential partners, we must take into account the importance of cultural considerations and therefore, etiquette. Failure to do this could result in a breakdown of communication. The consequences of this are easy to appreciate.
In this post we are examining American business etiquette. So what are the do’s and don’ts when dealing with American business culture? What is the key to understanding the rules of American business etiquette? Let’s take a look at some of the key points.
Dress code
For a first meeting, you cannot go wrong if you dress conservatively. Afterwards, you may want to follow the example of your American counterparts. In U.S. business culture, dress tends to vary. Executives in most regions of the country usually dress quite formally.
Business Language
Almost all business is conducted in English. Be aware that many Americans speak only English. Spanish is another common language due to the United States' proximity to Mexico and Central America and the large population of Spanish-speaking individuals in the country. However, English will still be used almost 100% for business deals. Because many Americans speak only one language, they may not be sensitive to the difficulties of other individuals trying to speak English. They may speak fast or very loudly (as if this will help you understand them better!). American business language is also very idiomatic. Many Americans adopt sports terms in their business speech ("Touch base," "Ballpark figures," "Call the shots," "Team players," and "Game plan" are a few examples.) Many Americans may not be aware that they are using these idioms because they seem so natural. If language becomes a barrier, ask for clarification and seek understanding.
General Guidelines
Americans often ask, “What do you do?” (i.e., “Tell me about your job and employer”) to start a conversation. This kind of question is not considered presumptuous, but rather is a way to show interest in the individual by showing interest in his or her job. Compliments are exchanged frequently and are popular “conversation starters.” If you wish to make conversation with someone, you can compliment an item such as his or her clothing or a work or sports related achievement. Generally, Americans like to laugh and enjoy being with people who have a sense of humour. Jokes are usually welcome, but be careful. In all situations, ethnic and religious humour should be avoided. Self-deprecating humour, however, usually goes over well.
Sports are very popular in the U.S., especially baseball, football (not to be confused with soccer), and basketball. Soccer (known as football in most other countries) has grown in popularity in recent years, but is not nearly as popular as these other sports. Golf is another popular sport, especially among businesspeople.
Conversation topics to Avoid
Political correctness is a major feature of American life and should, therefore, be considered when selecting topics of conversation. There are many completely taboo subjects to avoid. Ethnic or religious jokes are also regarded as being unwelcome. Also, until you know a person well, avoid discussing religion, politics or other controversial subjects such as abortion, racism and sexism. Refrain from asking women if they are married. If a woman volunteers this information, however, you may ask a few polite questions about her husband and/or children.
Welcome Topics of Conversation
A person's job or work-related matters, sports, travel, food, music, movies and books are safe subjects on the whole and are almost certainly not likely to cause offence.
American Business Culture
This culture stresses individual initiative and achievement. Moreover, Americans can also be competitive in both work and leisure. The concept "time is money" is taken seriously in U.S. business culture. Businesspeople are used to making up their minds quickly and decisively. They value information that is straightforward and to the point. In the U.S.A., money is a key priority and an issue that will be used to win most arguments. Status, protocol, and national honour play a smaller role. Similarly, "saving face" and other social niceties and formalities that are vitally important to other cultures are not as important in the United States. American businesspeople are opportunistic and willing to take chances. Opportunism and risk taking often result in Americans going for the biggest possible slice of the business, 100% if possible.
Americans tend to dislike periods of silence during negotiations and in conversations, in general. They may continue to speak simply to avoid silence. In general, people from the U.S. will not hesitate to answer "no". Businesspeople are direct and will not hesitate to disagree with you. This communication style often causes embarrassment to business travellers who are unaccustomed to dealing with Americans or direct communication in general. Persistence is another characteristic you will frequently encounter in American businesspeople; there is a prevailing belief that there is always a solution. Moreover, they will explore all options when negotiations are at an impasse. Anxiety often develops over deadlines and results. The work ethic is strong, so that it appears that Americans' lives revolve around work.
Consistency is common among American businesspeople: when they agree to a deal, they rarely change their minds. Americans tend to be future oriented. Therefore, innovation often takes precedence over tradition. The United States tends to be an ethnocentric culture, so it is closed to a lot of "outside" information. Thinking tends to be analytical, concepts are abstracted quickly, and the "universal" rule is preferred. There are established rules for almost everything, and experts are relied upon at all levels.
Be aware that the United States is the most litigious society in the world. There are lawyers who specialize in practically every industry and segment of society.
In a meeting, the participants will proceed with business usually after some brief, preliminary "small talk" about topics unrelated to the business at hand. This is generally practiced to ease tensions and create a comfortable environment before entering into business matters. Topics may range from sports, weather, or other smaller business topics. Personal matters should not be discussed during this time, or any time in the negotiation. Usually, business is conducted at an extremely fast pace. Regardless of the negotiator, company policy is always followed. Though they are risk-takers, American businesspeople will also have a financial plan which must be followed. Americans regard negotiating as problem solving through "give and take" based on respective strengths. Therefore, they will often emphasize their financial strength and/or position of power. In negotiations, points are made by the accumulation of objective facts. This evidence is sometimes biased by faith in the ideologies of democracy, capitalism, and consumerism. The subjective feelings of the participants are not as much of a factor. Therefore, they will not spend much time seeking consensus. Often, American businesspeople try to extract an oral agreement at the first meeting. However, U.S. salespeople sometimes bring final contracts to first meetings with prospective clients. In large firms, contracts under $10,000 can often be approved by one middle manager in a single meeting.
In the next posting we'll look at British business etiquette.
