Strategic Alliance Magazine Q2 2016 - 30

C RO S S - C U LT U R A L PA RT N E R I N G Tips on Doing Business in Latin America When engaging in business relations with Latin partners, Gentil recommends the following: C O N T E X T (continued from previous page) The behavior was in line with what Guarino Gentil Jr., CA-AM, and director of alliance management at Merck KGaA, Darmstadt, Germany, described as very typical of Latin American culture. Gentil moderated the Latin America segment of the Cultural Roundtable session at the 2016 ASAP Global Alliance Summit. The cultural insights and practical recommendations he offered in his presentation on Latin culture resulted in multiple questions and lively discussion. & N U A N C E When you go to Latin America to have a face-to-face business meeting, make sure you start off the relationship with a conversation about the weather, soccer, or their family, he emphasized. "Only later, when the meeting is more relaxed, should you discuss business. If you go strait to the point, it will be harder to build rapport later. They might not see you as a polite person," he advised. The Latin cultural scene can be very different than it is in the United States, where a face-to-face meeting might immediately focus on the business objective, he added. Even if you have a face-to-face meeting of just one hour, spend at least five minutes to talk about personal subjects. If you have an eight-hour, daylong meeting, in Latin America, be prepared to spend a half hour of time at the beginning making introductory conversation. "After you've drunk your first cup of coffee and created trust through light conversation, then you can start talking business." 30 Italy is another country similar to Latin America where friendly relations can lead to solid business ties, he indicated. If you develop good relationships, Italians will share information with you that they would not share with someone else. n STRATEGIC ALLIANCE MAGAZINE | SUMMER * 2016 n A number of Latin American countries suffer from instability and high inflation. These economic challenges, as well as cultural norms, may encourage Latin Americans to be more oriented to the short term. They may focus more on the value of earnings in the first year; they may perceive much less value in later years. n M ake sure you have a close contact, someone who will remember your requests and prioritize them. You are going to need help understanding what's going on. n R emember that many Latin American cultures tend to show greater deference for hierarchy and respect for their bosses than people in the US. If you feel you are not meeting your objective, keep in mind that Latin American employees may be inclined to follow the orders of their direct bosses and may not have the power to make decisions. Make sure you include a meeting with the bosses on the agenda. Otherwise, there can be a disconnection. n W ith long-term projects, it's important to schedule frequent follow-ups-not just on the date you expect to get results. This can help to avoid a tendency to focus on the most recent task request or on job requests that are closer to home. n K eep in mind that these are general cultural guidelines- working in each country and region also has its unique nuances. The same is true of market regulation, though there are regional trade agreements and some progress has been made toward standardization of market access and price legislation in the pharma industry, for example. n T he way local laws are applied can be problematic: Some laws exist but are not enforced in practice. It's important to discuss these laws with local companies so they can provide valuable information and instruct you on how the laws really work.

Table of Contents for the Digital Edition of Strategic Alliance Magazine Q2 2016