On August 5th, 2011, Douglas presented at Columbia Business School, discussing current trends in the evolving business partnership between the U.S. and China. These trends, both positive and negative, are contributing to the global expansion of Chinese firms and brands, and credibiltity concerns between the U.S. and China. Additionally, the recent frauds and delistings of US-listed Chinese firms has increased the accountability and trust concerns between US investors and Chinese firms.

1. Lessons in Communication
Trends in the Growing Business Partnership
Between the U.S. & China
Columbia Business School
Douglas Paul Menelly
August 5, 2011
(c)
Menelly
2011

2.  Popular Misconceptions
 Research Methodology
 Themes covered in the book
 Communication & Culture
 Trends in 2011
 Misunderstandings
 Heuristics
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Menelly
2011

3. • China is fundamentally “different”
• Only locals can 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”
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Menelly
2011

4.  Experience: Four years of observations
 Surveys & Interviews
 Survey Recipients:
 20-questions
 Distributed to 30 Western Executives
 Multiple industries
 Shenzhen, Shanghai, Guangzhou
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Menelly
2011

5. ① Performance Management
② Participatory Management
③ Compensation
④ Morale
⑤ Office Culture (the Informal Network)
⑥ Problem-Solving, Decision-Making, & Critical Analysis
⑦ Independent Thinking & Creativity
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Menelly
2011

6.  It works in New York &
London, so it will work in
China, right?
 Contracts are often the first
step for a relationship in
China, not in executing a deal
 Chinese Culture & Western
Business collide: what to do?
 Crash Course for Foreigners
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Menelly
2011

7. (c)
Menelly
2011

8. 1) Mistrust: US-listed Chinese firms,
Frauds, SEC audits in China
2) Accountability: Chinese execs
3) Global Expansion: Chinese brands
entering the world-stage (eg. Haier)
4) Partnerships: Huawei-Symantec
5) Regulations: China implementing
U.S.-type laws (as Beijing deems
appropriate; IP not yet a priority)
6) Service Industry in China:
Chinese growing to see the value in
services: consulting, accounting,
insurance, legal, etc.
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Menelly
2011

9.  Misunderstandings: lack of knowledge of
Chinese culture, history, language
 Culture Confusion: To strengthen
communication and relationships, foreigners
should study the culture/history
 Assumptions: Westerners working in
China are not “at home” and wrongly make
assumptions on how to work with a Chinese
company
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Menelly
2011

10. 1) Accountability: morals & ethics
2) Prepare, Prepare, Prepare
3) Focus on Values
4) Do not make assumptions
5) Be patient
6) Ask Chinese friends for advice
7) Study the culture
8) Learn Mandarin
9) Ask Questions!
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Menelly
2011

11. Book Reviews, Comments, Video Clips,
and more available on my website
www.menelly.com
dm2778@columbia.edu
(c)
Menelly
2011

12. Courtesy: Korn/Ferry
(c)
Menelly
2011