RUSSIAN BUSINESS CULTURE

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RUSSIAN BUSINESS CULTURE
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NEW FEATURES

• Gone are the times when you could be screwed up
  at any corner, nowadays businesses strive for
  long-term reputation and loyal customers.
• NOT TO BE MISTAKEN - TO BE ATTENTIVE IN ANY
  COUNTRY
• RUSSIAN BUSINESS CULTURE INFLUENCED BY
  DIVERSIFIED CULTURE AND THE DESIRE TO STUDY

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Russian culture - key concepts and values

• Collectivism
• Egalitarianism
• Dusha (soul)

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Working in Russia

• Working practices in Russia - stereotype
• The Russians attitude to time means that a few
  minutes delay on their part is of little
  importance. However, they will expect you to be
  punctual.
• Faxes and emails are the best way to communicate
  in Russia, as the post can often be unreliable.
  It is customary before making a trip to Russia to
  inform the prospective company of your intended
  business proposals and objectives.
• Paperwork and putting pen to paper is an
  essential part of all working practices in
  Russia. In general, they have little faith in
  unsigned documents.

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Making appointments

• Persistence and patience are essential. Once your
  appointment is scheduled, do everything you can
  to avoid cancellation.
• Don't schedule your trip to Russia near the end
  of July or during the month of August- this is
  the time of year many people take their
  vacations.
• The Russian day begins early, but it can be
  difficult to foresee when all other daily
  activities will begin and end. Schedules are
  constantly subject to change, often at the last
  minute.
• Allow plenty of time for each appointment.
• Business day is usually 900 am to 600 pm Monday
  through Friday and some Saturday mornings.

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BUSINESS DRESS CODE

• Old Russian proverb--one meet you depending on
  how you're dressed and say good bye depending on
  how wise you seem to be
• Russian businesspeople pay a lot of attention to
  how they are dressed. Russian people in general
  probably spend more money from their family
  budget on clothing then any other nation in the
  world.

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Conversation

• Visitors should try to speak in a calm, moderate,
  tone of voice at all times.
• Your Russian colleagues will be delighted if you
  make the effort to speak even a few sentences of
  their language.
• Russians are sometimes very careful about what
  they say, speaking metaphorically, symbolically,
  and perhaps even cryptically.
• Bringing up the subject of Russian culture and
  history is appreciated.
• Compliments - with caution, they may cause a
  feeling of misplaced obligation. (admiring a
  decorative object, your hosts may insist that you
  take it).

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Structure and hierarchy in Russian companies

• The hierarchical structure in Russian business
  practices means that the decision makers higher
  up have authority over their subordinates.
  However, the nature of the collective good often
  encourages a flexible and democratic work ethos.
• Showing respect for seniority and recognizing the
  hierarchical structure is vital for establishing
  and maintaining strong business relationships.

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Working relationships in Russia

• Personal and informal contact is a central part
  in doing business in Russia.
• Physical contact during business meetings (a
  simple hand on the arm or even embracing) is a
  positive sign. The notion of social space is
  close in Russia.
• In situations of conflict - to avoid taking an
  official stance and remember that Russians are
  'people orientated' and will respond to a more
  personal approach.

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First Name or Title?

• Very intimate friends or relations - refer to one
  another by the first name.
• Ensure that you learn the titles of everyone you
  plan to encounter
• Russians have three names the first name is a
  given name, the last name is the father's family
  name, the middle name is a version of the
  father's first name.

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GIFTS

• Russians take pleasure in giving and receiving
  gifts . Russians spend a lot of money on gifts .
• Gifts for children are usually opened in private,
  gifts for adults are generally opened in the
  presence of others.
• Gifts are expected for social events, especially
  as thank-yous
• Bringing a bouquet of flowers for women.

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• Business practices in Russia
• Business cards are essential. If possible, ensure
  that one side is printed in Russian and one side
  in English.
• Presentations should be straightforward and
  comprehensible.
• Although many principal concerns are discussed in
  an informal environment final negotiations will
  be conducted in the office.
• Generally, when beginning a meeting, the head of
  the organization will open the discussion and
  introductions should then be made in order of
  importance.

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GENDER ASPECTS

• Women usually do not hold high positions in the
  Russian Business culture.
• There are more women in business education then
  in business.
• Foreign businesswomen sometimes face adversity
  from the male-dominated Russian business culture.
  

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MEALS AND BUSINESS ETIQUETTE

• The business breakfast is not a part of Russian
  business culture.
• Business dining is getting more and more popular
  -is generally taken as a time for sealing a
  deal.
• The center seats are reserved for the most senior
  officials.
• Begin eating only after somebody says a toast.
  Toasting is a very important part of dining.
• Russians use the continental style of holding
  utensils. If you're unsure of which utensil to
  use, start from the outside.

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SOME GENERAL FEATURES

• The handshake is common.
• Eye contact is very important, must be maintained
  as long as the individual is addressing you.
• Smoking in public places is still a common
  occurrence, although some restrictions are slowly
  imposed.
• Wearing your coat and/or winter boots in
  theatres, office buildings, universities or
  similar public spaces is considered unacceptable.

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ATTITUDE TOWARDS FOREIGN PARTNERS

• The first meeting is usually just a formality-a
  time to assess the credibility of you and your
  company.
• Russians can sometimes place a great deal of
  confidence in your professional competence and
  experience very high expectations and demands.
• Russian business people are open-minded to new
  ideas, especially from western business culture
• Russian negotiators could make minor concessions
  and ask for major ones in return.

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Russian business etiquette (Do's and Don'ts)

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D O s

• DO shake hands firmly when greeting and leaving
  your partners and make direct eye contact.
• DO partake in small talk that involves talk of
  family and personal matters, before dealing with
  business.
• DO make a gift that symbolizes the stature of
  your company, preferably an item characteristic
  of your local area or one that displays the
  company logo.
• Knock before entering an office
• Close the door behind you, when leaving an office
  
• Supply beverages and snacks during business
  meetings
• Go out and have a drink with your counterparts,
  it is a good way to break the ice.
• Bring small gifts for the children of a home you
  visit

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Don'ts

• DON'T be afraid to show some emotion, the
  Russians won't!
• DON'T as the Russian proverb states 'hurry to
  reply', but 'hurry to listen'.
• DON'T praise or reward anyone in public as it may
  be viewed with suspicion or cause envy and
  jealousy. Remember the collective rules over the
  individual.
• Wear lavish clothing or jewelry.
• Use a restaurant as a place for doing
  business--it's for celebration

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Doing business in Russia? YES, but neither
simple, nor easy

• Fierce competition to gain control over rich
  resources
• Selection of the Russian partner (especially in
  the region)
• Normally long-term projects worthy of development
• Building trust with Russian staff is critical
• Special marketing strategy

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Russian Culture Quiz - true or false

1. It is considered good luck to shake hands over
   the threshold of the doorstep.
2. When taking flowers as a gift you must only take
   an odd number.
3. If you leave something behind in Russia it means
   you're coming back.
4. In business negotiations Russians view compromise
   as a sign of weakness.
5. In Russia, the 'OK' symbol with the thumb and
   forefinger touching in a circle means 'everything
   is fine'.

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Answers

• False. It is considered bad luck to shake hands
  over a threshold and should be done either inside
  or outside.
• True. Even numbers of flowers are only given at
  funerals and are a sign of bad luck.
• True. A Russian superstition that is still
  present today.
• True.
• False. The Western sign for 'OK' is considered
  rude in Russia.