i4cp Conference Blog

Presentation by John E. Warren III

For John Warren, setting up operations in Asia centers requires leadership, organizational and cultural competencies. Of these, cultural savvy has the "greatest impact." Cultures vary by country, region, governmental level and type of business involved. And all of these will play a role in organizational decisions. Adapting to each requires language and listening skills usually not well developed in Western executives. Warren advises incoming managers acknowledge gaps in their cultural understanding before leaping into the fray or imposing Western methods and values. Respect for Asian social manners, mores and values, which rule every business dealing (even seating arrangements serve a business function) is critical. Asians need to know the personal backgrounds of their business associates before negotiating deals or setting up partnerships. Allowing others to "save face" is a business ground rule.

Business expansion in China faces severe labor shortages and unique recruitment hurdles. Workers over age 40 hold conservative values, prefer local employment and typically reject multinational opportunities. Those in their 30s are highly skilled and mobile but they are smaller in number and may be difficult to retain if they don’t advance quickly enough through an organization. China’s one-child policy has produced a generation of self-absorbed workers in their 20s, who demand high salaries and typically aren’t good team players. Age hierarchies rule the Asian workplace so a younger boss will have difficulty getting respect from older workers. Lingering national hostilities make it impossible to put Korean and Japanese workers together.

Organizations must respond quickly to ever-accelerating business cycles and rising salary demands. Warren recommends outsourcing HR locally and retaining local legal support to sort out employment laws.

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