Why Foreign Invested Companies in China Need Communications and Intercultural Coaching Programs

Most global companies today either have a presence in China or have considered operations there.  It’s no surprise, given the opportunities that exist in China’s markets.  With over 1.4 billion potential customers, China remains one of the largest and most attractive markets in the world.

But China is also profoundly different than other countries in many ways.  Foreign invested companies (FICs) face a number of challenges in doing business there.  Overcoming these challenges can be quite a process.

The right kind of support for leadership and talent, both inside and outside China, can make all the difference determining whether these issues get resolved with positive outcomes or persist in causing difficulties.

Coaching programs led by professionals with experience working and living in China are, without a doubt, the one of the best ways to provide that support to anyone working in or with FICs there.

Here are the top reasons why FICs in China need Communications and Intercultural Coaching Programs.

Reason #1: Cultural Differences

Cultural differences top the list of reasons why FICs in China need coaching programs.

China’s modern culture is unique in a very real sense and the differences between today’s China and the rest of world are many.  Points of overlap are relatively few, even with neighboring countries.  Ideas about power, work ethic, communications, relationships, and professionalism are all very different in China than anywhere else.

To those who have lived or worked in China, this might not be news.  But the extent of those differences isn’t always apparent and it can be difficult to pin down exactly what those differences are and why they matter, even for those who have experienced them first hand.

And those differences do matter.  They have consequences that affect company operations and people on both sides of the divide.  Often those consequences aren’t immediately visible.

On the one hand, cultural differences pose serious challenges for top leadership as well as employees around the world who work with FICs.  Anyone without extensive, direct experience living and working in China will find it very difficult to understand the depth and complexity of Chinese culture.  They may find the expectations and approaches of their Chinese counterparts to be bewildering and difficult to accept.

On the other hand, local employees of FICs face parallel, yet distinct, obstacles.  FICs present very challenging work environments for them.  Executive leadership is often located outside China and locals frequently have to work with people from other countries.  As a result, they are must navigate the expectations of both the local culture and that of their counterparts from around the world.

Even though plenty of Chinese people can say they’ve travelled abroad; few have enough experience with other cultures to recognize the similarities and differences.  To most people in China, anyone from another country is simply “a foreigner”, defined by the fact that they are not Chinese.

This inability of people from inside and outside China to identify with each other frequently manifests in misinterpretations and disagreements.  In the worst case, people on both sides engage in othering their counterparts.  That kind of behavior can quickly become toxic and destructive.  And it often does.

The result is that communications frequently breakdown, conflicts arise, time is wasted, and productivity drops dramatically.

Cultural Differences: How to Address It

The best way to address these concerns is to develop a clear company culture and disseminate it globally.  The idea is for employees around the world to adopt the company culture and give it precedence in the workplace, no matter what country they’re from or who they’re interacting with.

When successful, everyone in the organization has clear standards by which to guide their actions and communications.  Over time, that standard becomes routine and staff act accordingly, without even thinking about it.  Regional cultural differences become less and less important as the company culture is more and more broadly adopted.

The major drawback to this approach is that it has little immediate impact.  It takes a long time to implement and even longer to realize meaningful change.

That’s doubly true for FICs in China.  Cultural pushback and an emphasis on domestic conformity make effecting change via this method especially difficult.

How Coaching Programs Help

For any immediate results, FICs in China must confront cultural differences directly.  But they must also do so carefully and thoughtfully.

Communications and Intercultural Coaching Programs are essential tools in doing that.  By implementing programs led by expert professionals who have extensive experience living and working both abroad and in China, FICs can start to effect change fast while avoiding the pitfalls of cultural pushback.

The effect is twofold.

First, participants in these programs, both inside and outside China, receive direct support in their communications and intercultural relations.  Expert coaches are able to help participants identify and understand what the cultural differences are and how best to communicate around those differences with tact.

Second, the FIC benefits from improved productivity.  As participants develop their communication skills, both general and intercultural, they experience less conflict and learn to streamline their interactions.  That translates into less time wasted on unnecessary communications and conflict and more time spent on value-added activities.

This isn’t limited to only the participants.  Those who interact with participants also benefit from improved communications with them.  In turn, they have more time and energy to devote to other tasks.

In addition, these kinds of coaching programs are an excellent way to either kickstart or reinforce the process of implementing a global company culture.  Participants are actively reminded of the corporate culture and provided guidance along those tenets.

All in all, Communications and Intercultural Coaching Programs are an excellent method by which to build a foundation for corporate culture while simultaneously supporting, enhancing and developing talent in interactions, intercultural or otherwise.

Reason #2: The Language Barrier

Language is the second most important reason that FICs in China need coaching programs.

China is, of course, not an English-speaking country.  Most legal documents and government systems are primarily in Mandarin Chinese.  That’s only to be expected.  If English is provided, it is usually secondary, in a supplementary role.  Even then, the language may not be precise or even correct.

This alone would be trouble enough.

But the obvious fact that Mandarin is the official language of China obscures the real challenges and reason why the language barrier is so important for FICs to consider.

Language concerns for FICs in China extend far beyond official needs.  They’re a practical problem that greatly affects the working lives and interpersonal communications of employees and, by extension, the operations of the company as a whole.

Communications can break down because people literally do not understand each other, sending them into a spiral of miscommunication and conflict.  In this way, language issues both mirror and serve to exacerbate the challenges and difficulties presented by cultural differences.  And, like cultural differences, that drags on productivity.

This is doubly true when both parties are second-language speakers.

Like culture, people from different places differ in their language.  They have different accents, different skill levels, and use the language in different ways.  So, even though English is the working language for most multi-national companies, it is hardly uniform.

China is no exception.

At best, China is a country where many people speak a smattering of English and some people speak English as a second language.  Out of those, only a handful speak English very well.

These people can be hard to find, especially when role-specific professional or technical expertise is required.  They can also be expensive.

The idea of staffing an FIC with proficient English speakers is an attractive one.  However, companies are more often faced with the choice of either splitting the role into multiple positions or foregoing expertise on one side or the other.

It simply isn’t possible to entirely staff an FIC with “perfect” employees.

The Language Barrier: How to Address It

First, it’s important to realize that strong language skills are not the same as strong communication skills.  It is absolutely possible for a person with strong language skills to be a poor communicator.

Consider how many communications issues arise among same-language speakers.  Being multilingual does not magically mitigate these kinds of issues.

Unfortunately, many leaders and HR professionals get hung up on this distinction.  They regularly make the mistake of thinking that knowing more words equals better, clearer communications.

In fact, the opposite is often true: Simple language is usually the clearest.

Consequently, FICs should not hyper-focus on language skills.  If an FIC truly needs expert translators, they should be in dedicated translation roles.  If not, outsourcing is a better option.  It’s usually cheaper, too.

Instead, FICs should put greater emphasis on communication skills.  Staffing an FIC with professionals that are better communicators will have a greater impact on company operations than staffing it with people fluent in English.  As long as they can speak basic English, they should be able to quickly learn role-specific jargon.

That said, there is some correlation between better language skills and better communications skills.  Taking the time to find and hire talent with both to fill key positions will pay dividends in the future, even if they are more expensive.

FICs just need to be very careful that they are not confusing the two skills, that they prioritize each appropriately, and that they rigorously gauge the communication skills of potential hires.

How Coaching Programs Help

Once again, Communications and Intercultural Coaching Programs offer invaluable support for FICs. 

These programs help professionals focus their efforts on communicating clearly instead of searching for words.  Participants learn to recognize the value of simple language and discover how to transmit complex information in easy-to-understand ways.

And the benefits of adopting clear, concise and simple communications extend well beyond mitigating the language barrier.

Since the guidance provided in coaching programs is language-agnostic, participants are able to carry that guidance over into communications in any language.  Virtually every communication is improved.

Finally, as a bonus, programs provided in English give participants a safe, low-stress environment in which to get comfortable speaking the language.  Because there is no direct pressure to expand vocabulary or improve grammar, per se, they are able to practice it as a tool for communicating in clear, concise terms.

Reason #3: Rules

Another major reason why FICs in China need coaching programs are the rules for operating in the country.

These rules can be very different from those in other jurisdictions.  And, like the more subjective cultural differences, it can be hard for people on opposite sides of the border to identify and understand those contrasts.

The extent of those differences is one thing that catches many people by surprise.

But more than anything else, it is the unwritten rules that surprise them.  What’s more, these rules can vary significantly case to case and from one locale to another within the country.

Like cultural differences, to those who have little experience living and working in China, these rules can be confusing.  And since they are never explicitly defined, there is little opportunity for those from outside China to learn what is expected of them.

This can cause leadership and employees to make errors that may be costly, long-term, and difficult to correct.  There are many pitfalls for the uninitiated among these rules.

Local people, on the other hand, view these rules as normal; they expect it.  The fact that such rules are alien to most of their overseas counterparts does not always occur to them.  The disbelief of their counterparts is a common source of consternation among local employees.  They just don’t understand why people from outside China have difficulty identifying and accepting these rules.

Different Rules: How to Address It

This can be a very difficult problem to address.

People from outside China often assume FICs should operate similarly to companies in their own locale.  Even allowing for some differences, they are usually not prepared for how different the rules for FICs are.  They may also push back against rules they feel are arbitrary or unreasonable.

When locals at the FIC suggest doing things differently or that something cannot be done in the way expected by their overseas counterparts, they sometimes have difficulty explaining the reasons, especially when those reasons are rules specific to China or their own locale.

This difficulty is partly because they believe such rules may not be palatable to non-Chinese (especially Western) sensibilities.  But it’s also because the rules themselves are not always well defined and somewhat flexible, on a case-by-case basis.  These rules are implied, not openly discussed.

In some cases, openly discussing these rules may be interpreted as challenging them.  In the worst case, it may be considered outright non-compliance.  That can create personal difficulties for whoever brought it up and even operational difficulties for the FIC as a whole.

Additionally, these rules may require the FIC or its parent company to adjust their operational model, something many companies are reluctant to do without good reason.

Ensuring that leaders and employees are both cognizant of how China’s rules for FICs are unique and are able to address these differences with their counterparts, is key to ensuring that both parties are able to work within the bounds of those rules.

How Coaching Programs Help

Intercultural and Communications Coaching Programs are really excellent tools for FICs faced with these issues.  Professionals with deep experience in China can assist participants in recognizing and tactfully approaching delicate issues like rules.

They can facilitate both leadership and employees from outside China in recognizing that the rules for operating in China will be different.  In particular, these programs can help those from outside China in identifying and being sensitive to situations where those rules may be difficult for them to understand or pin down directly.

Programs like these also provide a support venue for local employees who need to communicate these rules to their overseas counterparts.  They help participants balance expectations and recognize that people in other countries may not know anything about the rules for operating a business in China.  Furthermore, they directly support participants in taking steps to address those concerns.

These programs help people on both sides approach these issues thoughtfully and respectfully.

The result is reduced conflict, greater understanding and cooperation, and improved trust.  In the end, that translates into more efficient communications and higher productivity.

…And Many More

FICs in China face many other challenges and difficulties beyond those discussed here. 

Local leadership, oversight, hiring and finance are all important concerns for FICs.  On their face, these may seem like disparate concerns, but they’re usually related to the issues covered in this article.  As such, they can all be mitigated by Communications and Intercultural Coaching Programs.

The most important thing for programs like these is that they are led by professionals with extensive experience living and working in China.  This kind of expert can provide invaluable insight into the causes of those unique difficulties that FICs face.  Even more importantly, they can support leadership and staff alike in finding solutions.

Ultimately, coaching programs like these are one of the best investments an FIC in China can make.  They are also quite possibly the single best way to mitigate and resolve many issues, especially those related to differences in culture, language, or rules.

Dear Reader:

In writing and posting these articles, together forming a guide for communications, I thought long and hard about the appropriate place to start talking about communications.

Hardly being the first person to write on this topic, I wondered if where I started was really important at all.  After all, I could simply pick a common or particularly useful point of communications practice and let it stand alone.

That would be a simple way to contribute value to the reader quickly and efficiently.

But it would also mean that each article would stand apart from the body of work as a whole; loosely connected by topic, and yet completely self-contained and independent of any other part of that body.

And that seems to fly in the face of communications as a field and practice.  Many parts of communications are interlinked and operate in relation to one another so closely that it is impossible to call them separate at all.  To even try and do so is misleading, perhaps even dishonest.

It is also contrary to my larger goal of creating a comprehensive guide to the hows and whys of communications concepts and methods and how to practically apply them in the real world.

So, where does that leave me?

Well, it leaves me starting at the beginning, with the seemingly simple two-part question:

“What is communications and why should I care?”

And, that, my dear reader, is where I will begin.

I hope that you will find these articles interesting, insightful and practical!

Thank you for reading!

-Micah McLaughlin

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