This document summarizes a book on lessons for communicating and working with Chinese business culture from a Western perspective. It outlines some common misconceptions Westerners have, such as thinking Chinese business works the same as Western business. The book is based on surveys and interviews with Western executives working in China. It identifies themes to focus on like communication, culture, and misunderstandings. It provides heuristics or takeaways for Westerners working in China, such as maintaining accountability, preparing extensively, and focusing on values and ethics rather than assumptions.

1. Lessons in Communication
Marrying Western Business Philosophy
& Chinese Culture
AmCham Hong Kong
Douglas Menelly
October 26, 2010

2.  Popular Misconceptions
 Research Methodology
 Themes covered in the book
 Communication
 Culture
 Misunderstandings
 Heuristics – “Takeaways”

3. • China is fundamentally “different”
• Only locals can truly understand and manage the Chinese
system
• The body of law in China is limited and/or incomplete
• Focus on financial metrics is key – administration and
compliance are secondary considerations
• If problems arise, they are “fixable” because the system is
“flexible”

4.  Experience:
Four years of observations,
study, & analysis
 Surveys & Interviews
 Survey Recipients:
 20-questions
 Distributed to 30 Western Executives
 Multiple industries
 PRD - Shenzhen, Shanghai, Guangzhou

5. Performance Management
Participatory Management
Compensation
Morale
Office Culture (the Informal Network)
Problem-Solving, Decision-Making, & Critical Analysis
Independent Thinking & Creativity

6.  It works in New York &
London, so it will work in
China, right? WRONG !
 Contracts are often the first
step for a relationship in
China, not the first step in
executing a deal
 Chinese Culture & Western
Business collide – what next?
 Crash Course for Foreigners

8.  Misunderstandings: lack of knowledge of
Chinese culture, history, language
 Culture Confusion: To strengthen
communication and relationships, foreigners
need to study the culture and history
 Assumptions: Westerners working in
China are not “at home” and wrongly make
many assumptions on how to work with a
Chinese business partner or company

9. 1) Accountability: maintain morals
2) Prepare, Prepare, Prepare
3) Focus on Values
4) Ethics
5) Do not make assumptions
6) Be patient
7) Ask Chinese friends for advice
8) Study the culture
9) Learn Mandarin
10) Ask Questions!

10. I hope you enjoy the book!
Book Reviews, Comments, Video Clips, TV Interviews, and
more available on my website
www.menelly.com
doug.menelly@gmail.com

11. Courtesy: Korn/Ferry