By David James
Part 3 of 3
Arrange A Personal Meeting, If Possible. Time and time again, Asia-Pacific executives who were interviewed for this book or answered the book's survey questionnaire emphasized the importance of beginning a business relationship with a personal, face-to-face meeting. They said that this is especially important for Westerners seeking relationships with Asians. It is helpful, but not as important, for Asians seeking relationships with Westerners or for Westerners seeking relationships with Westerners. The difference is that Asians, being from collectivist cultures, place a high value on the personal side of a relationship and tend to discount people who are not members of their family, clan, organization, or nation.
Westerners, being individualists, are more focused on the potential material outcome of a relationship and tend to overlook its societal aspects. The advantages of a personal visit are that it enables both parties to gain a better understanding of the other, to communicate their messages better, and to garner information from the other that will assist in building a continuing relationship.
After a relationship is established, communications often become informal and very efficient. Some years ago, a senior executive of Cleveland Cliffs Iron Ore Co. negotiated substantial long-term "take or pay" contracts with Japan's Mitsui & Co. to take iron ore from Cleveland Cliffs' Robe River mine in Western Australia to Japanese steel mills. The relationship began with a formal introduction of the Cleveland Cliffs executive to Mitsui through Mitsui's bank, followed by several social visits. Detailed contracts were eventually concluded, and Cleveland Cliffs began supplying the ore on a regular basis. Production and contract problems sometimes occurred, and the Cleveland Cliffs executive would visit Mitsui in Tokyo to discuss them.
"The formal introduction and those early personal visits were crucial," says the Cleveland Cliffs executive. "And after a few years our relationship was so good that all I had to do was pick up the telephone or send a telex to Mitsui to resolve a production or contract problem."
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