Harnessing the
Asian Century - By Tamerlaine Beasley
The ‘Australia in the Asian Century’ whitepaper,
released in October by the Australian Government, is a big step forward in
defining the realities of the Asian Century. While the paper clearly outlined
what needs to be done, the challenge for businesses will be how to implement
these recommendations.
With over 40 per cent
of the world’s economic activity now in Asia, there is no denying the region
presents significant opportunities for Australian businesses. Separate to the
resources sector, Australia has the potential to lift economic performance in,
and due to, Asia by up to $275 billion over the next 10 years with improved
Asia Capabilities.
It is therefore critical that businesses develop or
access intercultural awareness, perspective, knowledge and capability. These
Asia-skills will enable the strategic approach, development of nuanced
relationships and adaptability it takes to succeed in the diverse markets of
the region.
Research shows a significant lack of board members and
senior executives with Asian experience or language ability in Australia’s
leading companies. Many businesses do not yet recognise or understand the
cultural differences and the impact these have on business relationships,
processes and outcomes.
Many Australian businesses are
sticking to ‘business as usual’ and learning the hard way through trial and
error when engaging in the region. This is costing time, money and wasting
resources and effort. CEOs need to understand the cost of developing Asia
capability in their teams will be a sound investment in future success of their
business.
What is Asia Capability?
Asia capability is about being effective and able to achieve
results when working in Asian markets, or with people from Asian cultures. It
is also about recognising the distinct nature of the cultures within the Asian
region and the huge variances between and among individual countries. Research
has shown the higher the proportion of senior leaders who have cultural
training, speak an Asian language or have lived and worked in Asia for more
than three months, the more likely business performance will exceed
expectations. Many misconceptions regarding what Asia capability is exist
because, in many instances, businesses are at the stage of ‘unconscious
incompetence’ – they don’t know what they don’t know. Without local language
capability or trusting relationships with locals, it’s hard to access the
significant differences in world-view which occur in diverse cultures.
Achieving Asia capability is a four step process.
1. Awareness
Understanding what is cultural and what isn’t. For example, when
negotiating in China the Chinese will sometimes say something is not possible
for cultural reasons, implying the other party is being racist. Without a depth
of understanding of what’s cultural and what’s not, this claim can be a real
challenge for Australian negotiators who may not be able to discern whether
this is merely a negotiation strategy or a reality.
2. Perspective
This involves learning how your (Australian) culture influences
your perspective, behaviour and approach to business process, and how this may be
different to the people you are working with. In the highly complex and
culturally diverse context of the Asian region, it’s hard to know all cultures
in detail. What is far easier to do, is understand the key elements of
Australian culture which are most foreign in the region. For example, the
Australian preference for ignoring hierarchy and being highly informal and
using ‘banter’ to develop rapport, is something often misunderstood in almost
all Asian contexts.
3. Knowledge
You need to develop your knowledge of Asian cultures so you can
understand the local context, how and why it is the way it is, as well as the
unique characteristics in relation to the capability you need. For instance,
business and meeting processes, negotiation styles and governance.
Understanding these differences leads to less confusion, greater accuracy in
predicting timelines for achieving outcomes and greater focus on the areas of
activity which will have the most impact.
4. Capability
This involves developing the skills to adjust, adapt and perform
with and in other cultures. When we are capable we get results. With greater
capability in the region, we can better contribute to the regional community,
ensure our organisations are more successful and secure a brighter future for
our children.
There are many challenges
associated with doing business with Asian cultures. However, there are no
shortcuts and no way to skip the first three steps outlined above. Developing
Asia capability requires long term investment in developing understanding and
expertise which results in greater capability.
About Tamerlaine Beasley
Tamerlaine is the founder and Managing Director of Beasley
Intercultural and an expert in cultural intelligence, global collaboration and
leveraging diversity within workplaces. She is also National President of the
Australian Thailand Business Council.
Twitter handle @BIntercultural
About Beasley Intercultural
Beasley Intercultural is Australia’s leading intercultural
consultancy and training company. The business works with clients to navigate
the complexities of an increasingly culturally diverse workforce and helps them
to maximise the opportunities of the Asian century. The team supports global
workforce capability development in leading companies and government agencies
across the Asia-Pacific region.
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