By George Arfield
Global business is under attack across Latin America—again—especially
as turmoil wrecks local economies in Argentina, Venezuela, Colombia, Ecuador
and Bolivia, among other countries. Also not helping are U.S. and E.U.
tariffs on a variety of products. To protect corporate reputation, managers
must reassess the area’s stakeholder paradigm, building relationships
and communications that are relevant to local aspirations and are appropriately
delivered. We suggest some starting points.
“The American emphasis on shareholder value may
appear to put U.S.-owned global businesses in conflict with stakeholders
in other nations,” wrote D. Quinn Mills, professor at Harvard Business
School, several years ago. To rebalance this situation, strong relationships
have to be forged with customers, influencers, employees and other local
stakeholders. They need to be reminded of the “what’s in it
for you.” To avoid blunders, minimize antagonism and build a foundation
of support, it pays to:
- Identify key local forces (and potential rivals), from local individual
“icons” to collective interest groups;
- Deliver initiatives and messages that address local concerns and aspirations;
and,
- Adopt local style, customs, protocols and clear language to deliver
these messages.
Precision and recurrence in contacts and communication
are essential. Precision implies developing relationships that square
business objectives with local self-interest, customs and protocols. The
right moves—both in substance, content and form—are essential
in societies such as these, where “know-who” is as, or perhaps
even more important than, “know-how.” That means setting off
on the right foot and continuously developing mutually constructive and
comfortable relationships.
To develop and burnish your organization’s reputation
in Latin America, here are some language and cultural pointers.
1. There is no such thing as ONE Latin America.
There isn’t even a common language (see below). It is a mosaic of
distinctive countries and communities.
2. Speak the right language. Spanish comes in
different shapes and sizes; Brazil, the largest country in Latin America,
speaks Portuguese; the vernacular of Haiti is Crewol, a form of French.
Common words that are acceptable in one country can be meaningless, vulgar
or obscene in another.
3. Listen (and hear) in the right language. See
above. Know the nuances.
4. Speak with one voice. In a global environment,
corporate communications should be conceptualized so they travel across
borders and cultures with minimal adjustments. You want messages that
minimize erosion of context and meaning due to translation.
5. Know the relative value of time. Do not expect
to hold six meetings a day; Latin America is not Manhattan. A two-hour
lunch is not considered a waste of time; it’s an opportunity to
get to know each other and assess a person’s merits, as opposed
to those of the business. Do not race through meetings; show you care
enough to devote time to the other person. Time is elastic; be prepared
to wait—gracefully.
6. Know who you are dealing with. Since “know-who”
is important, you will be judged by association—who you see, meet
with or do business with. Do your research, be aware of family, school
and other local ties and rely on neutral input.
7. Rituals and protocol are important. Both business
and social customs loom large in societies that value form and procedure.
Simple things, such as the difference between a handshake and an abrazo
(hug), the form of address preferred by the host, seating arrangements,
etc., can set the tone and influence the outcome of a meeting.
8. Be mindful of history. Within minutes of arrival
in a Latin American country, you will see monuments, street names and
other reminders of one or more “prócer,” a term for
an exalted historic figure and role model. History and tradition are alive
in Latin America; avoid treating these with levity.
9. Brief, train and motivate local employees on modern
communications: what to say about the business within the local context.
Reward local employees for their communications accomplishments and ethical
conduct.
10. Have an exit-the-country communication strategy
and be prepared to implement it fast. Factor in the very real possibility
that companies have left Latin America, only to return some time later.
Build a solid legacy of goodwill.
Copyright © 2002 George Arfield
Abridged from a presentation before the Global Public Affairs Institute.
Author Bio: George Arfield
is a public affairs and communications consultant to management, specializing
in cross-border and globalization issues. He is a former Vice President
of Corporate Relations in the U.S. for Pechiney Corporation, the French
aluminum and aerospace components company. He can be reached at georgearfield@att.net.
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