Going Beyond Namaste, the cultural barriers

A Google search on ‘doing business with India’ will probably fetch thousands of articles and stories on what to do and what not to do when making a business trip to India. Personally, I think most of the tips mentioned in those articles are out dated now. Shaking hands with ladies or offering a glass of wine are no longer considered offensive in the new India. Besides most business people travelling there are already aware of such customs and traditions. But getting past the initial greetings and exchanges and getting down to business in India is still challenging because of the cultural factors (or the lack of awareness of those factors among people in North America). And it can be even harder when you are not directly selling or buying but trying to build a relationship with some key partners in the country.  Desire vs Commitment 

It is one thing to desire to do business with India and another thing to have a commitment to do business there. In order for a desire to become a commitment, the key people involved should try and understand the lay of the land in India, the people, the culture and the background of people in the industry that they are dealing with. It is not necessary to enjoy the food or Bollywood or learn the game of Cricket, but it is a must to learn the business values, the hierarchy and relationships between key players in the Indian market. And in order to fully understand the context of certain industries, it is inevitable to travel to India a few times before seeing any considerable development in a relationship. So all this points to the fact that one must essentially understand and embrace the Indian business culture to do successful business there. Probably the most important step in all this is realization that there is a cultural difference between the nations and it needs to be addressed.

So what are some of the highlights of Indian business culture?  The essence of business in India is the same as anywhere else, but what varies is the demarcation between personal issues and business issues. A cancelled business deal in the Indian context, is very much equivalent to a cancelled or broken relationship. An undelivered promise could be seen as a lack of trust and commitment. From a North American perspective, we need to understand these facets of Indian business before we enter into a relationship with Indian businesses. There needs to be some quality time spent upfront before beginning any business relation and the parties should lay down the ground rules before any commitments are made or transactions are made.

Communicate, Communicate and then Communicate some more

One might think that the topic of Communication has been done to death by all management gurus out there. While it is true that a lot has been said and written about the importance of communication, only portions of it has been carried through to most senior and mid level executives. And besides, the varied style of Indian and North American communication doesn’t make it any easier. When an executive from NA decides to ‘look into’ a matter, the Indian counterpart understands that an action has been initiated to do something. It is essential to break down all actions and commitments to the lowest level possible and have a written agenda between parties involved. While it may seem too cumbersome and repetitive in the beginning, it will save a lot of time and heartaches in the future. Any verbal commitments from one party should be put in words by the other party and communicated back to make sure all are on the same page. That way nobody will be seeking the status of a project that was never started in the first place!

Time

A business relationship with India is treated almost as closely as a personal relationship. So naturally it takes time to develop and flourish. Give it the time it needs. A long term vision and strategy are needed to pursue India as a target market. Short term gains will most likely be few and far between. And don’t be surprised if your partners in India also are seeking short term successes. Right now there is a rise in wealth creation in the country and sometimes traditional methods of doing business have to be parted with. But it is good to be prepared to stay in it for the longer term and get the most value out of a relationship than a short term gain.

In summary, these are the key points to remember :

• Ask yourself if you are committed to do business with India. Remember, it could be a long road before you see any results.
• Understand that there are cultural barriers and a need on both sides to learn each other’s methods
• Have a clear communication strategy
• Have a long term vision and goal.