Are you listening to what the customer needs?

9 09 2007

I have been involved in a series of meetings with business owners regarding problems in their companies. 

Declining sales and market share due to international competitors, inability to compete or a decline in the entire industry sector are some of the reasons mentioned.

Solutions that were discussed and debated including cutting costs of raw materials, increasing worker efficiency, lowering logistics costs, streamlining the administration and related costs, government intervention and protection, outsourcing and even forming alliances with the international competitors.

What struck me as incredibly odd was that not once were the customer’s needs mentioned.

Not once did anyone mention creating new ideas, products or services for the customer.

There was no discussion of investing in new technology because “things are difficult now”.

There was never a comparison made between the marketing and promotion, branding or image of the competitors versus the company’s marketing, promotion, branding and image.  Why not? 

Every comment or observation focused on lowering production and logistics costs to the customer, never on increasing the benefits to the customer.

All that mattered is “how can I sell at a lower price”.

That’s right.  The entire future of these companies, and in some cases entire industries are focused on how make their products for less.  How to beat the Chinese, Indonesia or Brazil or whatever developing country has access to cheaper raw materials or labor. 

Common sense tells us this is not a viable, long -term solution.

Each of these companies has stated in their publicity, website and in their mission statements that their focus is on the customer and on customer service.  Why aren’t the customer’s needs and future needs part of the search for solutions when sales are declining?

If the customer really truly cares only about price, your product is a commodity. 

If the customer only cares about price, they don’t care about your company’s service, advertising and promotion, attitude or participation in their business.

If you really think that the low price will guarantee the sale, cut out the customer or technical service.  Take away financing.  Take away delivery and logistics.  Forget environmental and worker protection.  Reduce your inventories.   Standardize your prices and order sizes.   Cut down on sales and promotion. 

Call me when your sales skyrocket and the money pours in. 

I suppose it’s normal when sales fall, to attack costs, and costs are a fundamental element in being competitive in certain goods and services.

It is not the only element.  It may not even be the most important one for your customer. 

It probably is the easiest area to change quickly, and requires no investment.  People like easy solutions that don’t require investment. 

The relationship with your customer, the ability to meet their needs with your product or service and allow them to make a profit is what makes business click.

How well do you know your customer? 

What problems are they facing?

Is your contribution to their product important, significant or fundamental in their success?

Do they see you as simply a supplier of a commodity or an integral part of their supply chain and future?

Have you explored how you can work with them to make them more competitive?

Once this has been accomplished, bring the results to the boardroom and start the discussion of how to aid declining sales and deteriorating margin.

Don’t stop with the easy solutions.

Look for the difficult solutions, the ones that require compromise and long-term commitment.

Look for solutions that require investment of resources; time, money, and ideas. 

These are the solutions that the competitor focused on cost is not interested in. 

These are the solutions that will provide confidence and mutual opportunities for growth.





Using positive reinforcement to win customer loyalty

22 02 2007

We respond positively to positive feedback, recognition, and reinforcement of our behaviour and activities at work or home.

We get angry or lose interest in an activity, goal or organization if we don’t receive this “pat on the head” or “cheer-leading” on a continual basis.

Our customers also need reinforcement and recognition in order to maintain their motivation and good feelings toward your company or products.

What are you doing to make sure they get it?

Does the customer feel like you are just “going through the motions”?

Does it feel real?

Are you really showing that you care?

What sets you apart from your competitors AFTER the sale?

Related Links

27 Great Leadership and Management Ideas

The power of something extra

What defines an exceptional leader





Mexican politics – what business people should know

22 11 2006

In order to begin to understand Mexican politics (an impossible task), it’s important to learn some fundamentals of the political system in Mexico.

  • There is no re-election for political officials for the same post in Mexico. Current office holders can sit-out a term and run again for the same office, or they can run for another political post.
  • The political parties control the selection of party candidates who run for office, at Federal, State and local levels. Political parties, and their leaders are very important.
  • In order to be remain in politics one must please both the party and the electorate.
  • The term for the President of Mexico is for 6 years, with no re-election.
  • The term for State Governor is 6 years, with no re-election.
  • The term for Senators is 6 years, with no re-election for a consecutive term.
  • The term for the Camara de Diputados (similar to the House of Representatives in the US) is 3 years, with no re-election for a consecutive term.
  • The term for local mayor is 3 years with no re-election for a consecutive term.
  • The term for State representatives and local elected positions is normally 3 years, with no re-election for a consecutive term.
  • Changes in the Mayor, Governor or President, cause major reshuffling of bureaucrats and administrative officials. This causes a slowdown or “unofficial” shutdown of some government offices between the election date and the date of the new administration start-up.
  • The lack of re-election encourages and favors the current politicians and parties in power to seek out projects with short term visible benefits. They are pushed to show successes, infrastructure projects or other tangible benefits during their term of office in order to get promoted and elected to future political posts.
  • In the Mexican states with stable, well defined political party tendencies and majorities, there is more focus on medium and long term projects and planning as the benefits can be attributed to the party.
  • If selling a long term project to the government, it should include short term benefits, or tangible results, so that the politicians involved can claim credit.
  • Never try and initiate the sale or negotiation of a major project to the State government during the last 6 months or year of a Governors term. It will be stalled, and you will have to “resell” it to the new administration.
  • Get to know as many local and State and Federal political officials as possible, in 3 to 6 years they are all sitting in different positions of power and influence in the government.

Related Links

How to do business in Mexico, Politics and Political Parties

How to speed up business decisions in Mexico

Patience, chaos and doing business in Mexico

Official websites of the Mexican states

Best States for business in Mexico – World Bank Report 2007





Sourcing and supply chain strategy – Mexico

16 11 2006

Purchasing from Mexico and Mexican suppliers?

Don Gringo at Catemaco News and Commentary brought these items to our attention.

Sourcing in Mexico gets easier.  The article points out that doing business with Mexico is easier than in the past.

  • The proximity of Mexico to the US markets impacts communication, logistics, costs and time factors.
  • Mexico has a history of dealing with the US, and are familiar with competitive manufacturing techniques.
  • Relationships are critical to success.
  • Beware of stereotypes.
  • Take the time to find the “right” partner.
  • Do’s and don’ts for doing business in Mexico

Does your supply chain strategy include Mexico?  It should.  Al Brown president of SupplyMex writes that Mexico offers:

  • Logistics infrastructure, highways, rail and port system that has been improved over the past 10 years.
  • Free trade agreements with 42 countries.
  • Global production and quality standards.
  • Stable political and economic environment.
  • Skilled workforce.

Thanks Don.
Related Links

Purchasing.com

Why you should pay attention to free-trade treaties 

Maquiladoras in Mexico

Industrial and Business Parks in Mexico





How to speed up business decisions in Mexico

13 11 2006

When doing business in Mexico, one of the fundamental complaints I hear from non-Mexican business people is the speed at which business in transacted.

They say there are 5 speeds to the Mexican economy, I believe they also apply to negotiations in Mexico.

1. Slow.

2. Slower.

3. Stalled.

4. Going in reverse.

5. Dead.

It can be quite frustrating, but it is part of Mexican business culture.

There are several options available that may help speed up the decision-making process in Mexico.

  • Make certain you are both working for the same goal. Write it down, discuss it, and determine that everyone is seeking the same thing. There should not be any hidden agendas.
  • Set fixed and specific dates when the data or information must be available or the decision will be made. Get personal commitments from the other participants. Don’t settle for vague answers, get them to agree in public to bring the specific data or make the decision on a specific date. Personal, not institutional responsibility.
  • Does everyone have all the information required to make the decision? Write down what is missing and assign responsible parties and dates for completion.
  • Follow-up with phone calls and written communication and verify that everything is running on schedule. You will have to dedicate more time to “motivating” or “prodding” than you are used to in your own country.
  • Don’t get angry. If there is no decision it is because of a reason you don’t understand or hasn’t been verbalized. Anger is seen as threatening, and not part of a good relationship, it will hurt you more than help you.
  • Be patient. It always takes longer than you think it will.
  • Keep up the communications, in fact increase them. Contact all the team members involved, try and discuss the project or decision informally (outside of the office or work environment).
  • It might be the money. When everything looks perfect, and still no decision, it might be due to money (or lack of it). Try and discuss this privately with the head decision-maker.
  • It might be the risk or control involved. Bring the subject out in the open and discuss the risks and control issues involved for both sides. This is best done informally with the team members, one on one.
  • It might be NO. Mexicans do not like to say no or give bad news in certain situations. They believe it is impolite, and many times will not respond or will allow the situation to continue until it fades away without a “yes or no” decision being made.

Related Links

Patience Chaos and doing business in Mexico

Doing Business in Mexico – cultural tips

How to negotiate with Mexican business people

How to do business in Mexico





World Corruption Perception Index 2006 – Transparency International

7 11 2006

Interesting look at perceived corruption worldwide.

Transparency International has released their 2006 index of corruption perception on November 6, 2006.

Mexico lands at number 70 on the list, which puts it close to the middle of the pack out of a total of 163 countries.

Since 1995, Transparency International has published an annual Index of perception of corruption ordering the countries of the world according to “the degree to which corruption is perceived to exist among public officials and politicians“. The organization defines corruption as “the abuse of public office for private gain. ” – excerpt from Wikipedia Corruption Perception Index.

As this index is based on polls, the results are subjective and are less reliable for countries with fewer sources. Also, what is legally defined, or perceived, to be corruption differs between jurisdictions: a political donation legal in some jurisdiction may be illegal in another; a matter viewed as acceptable tipping in one country may be viewed as bribery in another. Thus the poll results must be understood quite specifically as measuring public perception rather than being an objective measure of corruption.

Statistics like this are necessarily imprecise; statistics from different years are not necessarily comparable.” – Wikipedia Corruption Perception Index.

Related Links

Internet Center for Corruption Research

Corruption Perception Index – 2006 (EXCEL)

Transparency International

Wikipedia





Use of business titles in Mexico – Doing Business in Mexico

3 11 2006

The use of business titles in Mexican business life is important.

Most people with professional degrees are addressed using their professional title. This is especially true in written communication. Failure to do so can be seen as lack of education and offensive.

Until you get to know a person, always use the professional title or full name, never address them by their first name until it is clear that they are comfortable with this.

You can ask how they wish to be addressed if unsure. It’s better to make a mistake on the side of formality.

Some titles are general, and when in doubt regarding the professional title, you should use these:

  • Joven – refers to any young man from birth to adolescent.
  • Señor (Sr.) – refers to any male older than an adolescent.
  • Don – a term of great respect used to recognize older males.
  • Señorita (Srta.) – refers to any unmarried female. Once a woman is above a certain age, she is referred to as Señora, even if unmarried.
  • Señora (Sra.) – refers to any married or widowed woman.
  • Doña – a term of great respect used to recognize older females.

Professional titles

  • Doctor (Dr.) masculine, or Doctora (Dra.) feminine – Refers to anyone with a PhD. or Medical Doctors degree.
  • Licenciado (Lic.) masculine, or Licenciada (Lic.) feminine – refers to anyone with a law degree (most common usage) or Bachelor’s Degree.
  • Contador Publico (C.P.) – refers to anyone with a public accounting degree.
  • Ingeniero (Ing.) – refers to someone with an engineering degree.
  • Arquitecto (Arq.) – Refers to anyone with an arquitectural degree.
  • Diputado (Dip.) masculine, or Diputada (Dip.) feminine – refers to a publicly elected official equivalent to Federal, State or Local representative in the USA.

Related Links

Doing Business in Mexico – Cultural Tips

Patience, Chaos and Doing Business in Mexico

How to do business in Mexico

Criticism – how to do business in Mexico

Meeting people in Mexico

How to negotiate with Mexican business people

How to call Mexico from the USA





Doing Business in Mexico – cultural tips

1 11 2006

When doing business in Mexico you are very likely to see some, or all, of the following during a business trip. It’s part of the Mexican business and social culture.

  • Late arrival for meetings by participants. This might be up to 30 to 45 minutes late.
  • Cancellations at the last minute.
  • Changes in agreed upon plans and agendas.
  • Long lunches or dinners, where business talk is not the major theme.
  • Meetings that seem to go on for a long time before coming to the business issue.
  • People will gesture and use their hands a great deal while speaking.
  • There will be a degree of emotion in business discussions and presentations.
  • People will be very formal and polite.
  • People will sit very close to you when speaking, and often touch your arm or shoulder while talking.
  • Your Mexican partners will not be forth coming and explicit regarding bad news.
  • You will not hear the word NO a lot.
  • Deadlines may not be met for reasons that you don’t understand or don’t believe.
  • Until you establish a social relationship with your Mexican business partners, your business discussions will seem very vague, cold and unsatisfying.
  • Decision-making may be extremely swift or excruciatingly slow. You never will know why.
  • Dinners, parties, weddings and social gatherings last for hours. There is no such thing as a 2 hour cocktail party.
  • You will be encouraged to eat everything, drink plenty and enjoy yourself while in Mexico. Failure to do this is seen as a refusal of hospitality or a sign that you are not comfortable in Mexico or with your hosts.
  • In a social gathering the men will tend to congregate in one part of the room or table and the women in the other.

 

Related Links

 

Patience, Chaos and Doing Business in Mexico

How to do business in Mexico

Criticism – how to do business in Mexico

Meeting people in Mexico

How to negotiate with Mexican business people

How to call Mexico from the USA

Great International Business Trip Results

16 Essential questions – the international business traveller’s quiz





Great International Business Trip Results

16 10 2006

In any international relationship communication and understanding are critical for success.

Problems created by; language, stereotypes, misinformation, lack of information, and cultural misunderstandings combine with normal business problems to create a complicated scenario for anyone involved in international relationships and global business.

Prepare your international meetings and business presentations using the following questions as a guide to organize your ideas and focus on actions that will produce positive results for everyone involved.

6 Questions – Create Great International Business Trip Results

  1. What does this organization know about me, my company and my country?
  2. What do they think they know about me?
  3. What can I tell them that they do not know?
  4. What do I know about my international partner, culture and country?
  5. What do I think I know about this business, culture and country?
  6. What can they tell me that I do not know?

1. What does this organization know about me and my company. When you walk in the room an opinion has already been formed about you, your organization, and your ability to perform in the future. These ideas are based upon facts, information and past experience.

  • What has been the history of our relationship in their country?
  • Who has been involved in our mutual business, and why?
  • What promises have been made and kept by both?
  • What promises have been made and not delivered upon?
  • What have the major problems and success been in the past?
  • Press and media, our organizations promotional material.

2. What do they think they know about me. Clarifying the unknowns or presumed realities in a relationship is crucial to success. These ideas may be very damaging and limit your ability to trust one another. What stereotypical behaviour can you avoid or prevent? What can you clarify or refute through information or actions?

  • Behaviour and reacts based upon past experience with your organization.
  • Rumour and innuendo, press and media reports.
  • Negotiation styles.
  • Business objectives.
  • Behaviour, goals and methods of doing business based upon country and cultural stereotypes.

3. What can I tell them that they do not know. Today’s business world requires trust, information and solutions. Reinforcing your need to work with your international partner, providing important information or solutions, and clarifying misunderstandings can only help the relationship.

  • Clarify or destroy cultural stereotypes.
  • Clarify business objectives and why they are important in order to reach these objectives.
  • Provide solutions and alternatives to existing situations and challenges.
  • Provide information of value for their business and strategy.
  • Clearly identify current or potential business problems.
  • Predict and have answers ready for their questions.

4. What do I know about my International partner, culture and country? What do I know is true and not innuendo or interpretation? The numbers, facts, information, agreements and past performance history of the business. Information about the country and the business culture.

5. What do I think I know about this business, culture and country? What preconceived ideas and stereotypes are you working with? What are you assuming and what has been proven?

6. What can they tell me that I do not know? What questions do you need to ask in order to verify information or create plans. What pieces of your information puzzle are missing? This is the time to get your questions answered, what are they?

Related Links

Cultural misunderstanding it can happen to you

Stereotypes and global business

Create great international business relationships

16 Essential questions – the international business traveller’s quiz

Lessons in international business





Leadership – who do you want to lead?

27 09 2006

One measure of leadership is the caliber of people who choose to follow you. ~Dennis A. Peer

The semi-mystical mix of qualities, attitudes and behaviours that make or define a leader will provide plenty of material for business writers for years to come. The focus is often on what makes the person a leader or what actions define a leader.

How about looking at the situation from another point of view.

What kind of followers or team do you want to lead?

Are you seeking a group that can be easily manipulated and accept your commands without questioning your authority?

Do you want to lead a team of highly independent people who might question the goals and direction of the group at any time?

Do your followers believe you are the smartest, toughest or most courageous in the group?

What kind of people, attitudes, beliefs, and behaviours would your “ideal” followers have, and why?

Determining the qualities of the group you desire to lead, can provide insights into your leadership style and goals. It will give some definition of what leadership qualities you expect to project to others, and what qualities or responses you expect to see reflected in your team, and their behaviours.

Not many of us will be leaders; and even those who are leaders must also be followers much of the time. This is the crucial role. Followers judge leaders. Only if the leaders pass that test do they have any impact. The potential followers, if their judgment is poor, have judged themselves. If the leader takes his or her followers to the goal, to great achievements, it is because the followers were capable of that kind of response.” –Garry Wills in Certain Trumpets: The Nature of Leadership

Related Links

What Defines an Exceptional Leader

Leadership by default

There are no new management and leadership ideas





Business in Mexico, conversation themes

15 09 2006

When going to Mexico for business, be prepared for conversations. Mexicans are social people. They love to gather in groups and socialize. You can be assured of plenty of conversations during your visit.

Most business meetings and business dinners will involve a great deal of conversation of off-topic ideas before getting to business. Your ability to participate and keep the conversation moving is an important part of creating trust and the bonds required for doing business successfully in Mexico.

What topics are of general interest in Mexico?

Be cautious about introducing your personal opinions about politics and religion. Asking others to explain the current situation, so that you can understand it, is a safe way to venture into themes related to politics and economics.

Currently (September 2006) the following themes are sure to provoke conversations, discussions and opinions when in Mexico.

  • The recent Mexican presidential elections. Predictions for the future, scenarios, how it will might affect business and Mexico.
  • Your industry or business sector. Any international or national news, information, gossip, trends or tendencies related to your business sector.
  • Infrastructure projects in the city or state where you are visiting
  • China and it’s impact on the Mexican economy
  • Children and family
  • News or current events that can be found on the front page of the local or national newspaper
  • Recommendations on when and where to vacation in Mexico

Related Links

Create great international relationships

Advice on what to expect when doing business with Mexico





Cultural misunderstanding, it can happen to you.

15 09 2006

When we think of industry leaders in marketing and branding, Disney comes to mind. Geniuses in promoting their brand. Magnificent marketers. Leaders in the theme park industry. Universally recognized brand.

What could possibly go wrong with their expansion into Hong Kong and the Asian-Pacific market? Cultural misunderstanding.

Expansion into international markets and working with other cultures has created unforeseen headaches and problems for Disney once again. Disneyland struggles in Hong Kong

This is not the first time Disney has encountered cultural problems in international projects. EuroDisney also suffered from problems related to culture and customs that were not predicted or not taken seriously.

Disney is not alone. Virtually all organizations seeking to export and participate in international markets face steep learning curves about culture, customs and manners. Mistakes are made, at times very costly mistakes.

The lesson to be learned is to spend the time and money to understand your international markets and the culture where you will be doing business. It’s not enough to understand your brand and current customers. Never underestimate any cultural factor, and never assume that your model, project or way of life will be embraced fully and without reservations.

Related Links

Create great international business relationships

Stereotypes and global business





Create great international business relationships

14 09 2006

Working with individuals and ideas from cultures different from our own is complex, and filled with opportunities to misunderstand and offend everyone involved. It requires time to develop trust and understanding for all the players involved.

Take the time to learn how and why business is done in the country. Don’t judge the results based upon your culture and your country’s standards.

There is nothing more damaging to an international relationship than criticism based upon a lack of understanding. You must learn before you attempt to teach new ideas, strategies and procedures.

When doing business in Mexico remember that no matter what you feel or believe about your company’s products or procedures, Mexicans know their market and people better than you do. They know the correct business etiquette and the “invisible” cultural nuances that are required in order to do business in Mexico.

If you enter into business in Mexico with the idea that you are going to “teach the Mexicans how business is really done” I am confident you will suffer some serious problems.

Pushing procedures and business strategies into Mexico will surely cause divisions, it can turn into an “us versus them” situation for employees and customers.

I recommend that your focus be on learning and understanding how business in currently done in Mexico, and why. Once you have this knowledge, teach and explore your cultures and organizations solutions and strategies with your Mexican collaborators. I’ll bet the ideas will get modified if necessary, implemented and embraced quickly.

The creation of hybrid strategies, using elements from both cultures, will guarantee unification and understanding for everyone involved.

Before you start a revolution it’s essential to fully understand the status quo.

 

Related Links

International Business Tips

Stereotypes and global business

International business traveller – ambassador, explorer, map-maker





Stereotypes and global business

8 09 2006

A stereotype is defined as an unvarying form or pattern, specifically a fixed or conventional notion or conception of a person, group, idea, etc., held by a number of people and allows for no individuality or critical judgement. (Webster’s New World Dictionary, 1998)

Stereotypes are representative of a society’s collective knowledge of customs, myths, religion, ideas and sciences (McCrea,Stangor and Hewstone)

Working with global clients and international cultures provides the opportunity to breakdown and destroy existing stereotypes. Global business encourages and forces a confrontation of cultures and preconceived ideas.

Successful international trade and business is all about marketing. Marketing your product, yourself, the organization, your country and customs. Changing fixed and conventional notions and beliefs.

Interactions with other countries and cultures will be successful when we create an atmosphere of trust, build enthusiasm and excitement, and project an image of the organization or product that appeals to, and will be embraced by the client.

In essence, we are breaking the old stereotypes and helping to create new ones.

Related Link

International business traveller – ambassador, explorer, map-maker

7 tips for doing business internationally





10 reasons why people hire a business consultant

7 09 2006

Business consultants are an important part of our business culture. We have discovered that hiring consultants and outside experts can save us time and money. It also can increase our competitiveness and professionalism.

Consultants work best for those organizations or individuals who know what they are seeking and have clearly defined projects or objectives.

The following list provides 10 reasons why you might want to hire a business consultant.

10 reasons why business consultants are hired:

  • To provide a “short-cut” to know-how, knowledge and information that does not exist in the organization
  • To provide a professional service that does not exist in the organization, or that is needed for a specified period of time
  • To provide solutions to specific challenges and situations
  • To validate ideas that have already been created in the organization
  • To analyze, diagnose or criticize (constructively)
  • To facilitate the search for ideas and solutions with existing team members
  • To facilitate, create and implement methodologies and systems that enhance efficiency and organization
  • To access a network of business or government contacts
  • To bring in an experienced “outsiders” evaluation and point of view
  • To present, teach or implement “new” business ideas and procedures

Sept. 8, 2006 – Just found this at HorsePigCow, good ideas and comments about the role of the consultant, their value and why people tend de-value their role. The Value of Consultants

Related Link

The clients I don’t want





Re-inventing the job interview

6 09 2006

I’ve been monitoring with great interest the idea and reactions to Seth Godin’s post The end of the job interview. He questions our current job interview process and proposes an interesting alternative.

Perhaps it’s time to take a hard look at our hiring and interview processes. Are they serving our needs and requirements or creating future problems?

Reinventing the job interview and hiring process makes perfect sense when we reflect that it was developed for a 20th century workforce that consisted primarily of manufacturing laborers.

The 21st century, brings an abundance of knowledge workers and forces us to ask what is the best method to determine if they are right for our organization. The interview and process required in order to understand the potential employees abilities are very different for knowledge workers.

The top leadership and management jobs in our companies have always been filled by candidates that have come with recommendations from other companies or executive networks. This provides a certain level of security that they had the skills in the old job, but no guarantee they will succeed in your organization and corporate culture in the future.

We are already seeing a shift in how we hire and select candidates. The use of networking and on-line social networks are allowing job seekers and employers access to individuals (at all levels of the company) who come with a certain degree of “recommendation”.

Dr. Ellen Weber has added her opinion to Seth’s ideas at Brain Based Business. Her piece Seth wants to bury job interviews for his own alternatives adds scientific and psychological perspectives as to why or why the concepts might just work.

David Maister lends his voice to the discussion with a resounding “I’m of the belief that the overwhelming majority of recruiting interviewing is a complete waste of time. In Screening for Character he argues that we should be hiring attitude and character, and our goal in the hiring process is to identify these traits. But there is a catch. We are not trained to do this. He suggests that candidate recommendations from others that we respect and trust are our current best method to assure “success” in the hiring process.

It’s a profound, extensive and obviously well known dilemma in our society and organizations. We know exactly what’s broke and not working well.

Now, who knows how to fix it?





Advice on what to expect when doing business with Mexico

4 09 2006

Advice on what to expect when doing business with Mexico and Mexicans.

1. It is difficult to reach the top executives and business owners. The first contacts are difficult or impossible to make through “cold calling”. A much better strategy is to get personal introductions from consultants or other local business people.

2. Mexico is all about personal networks. They prefer to do business “face to face”. Impersonal methods of communication will be used, but plan on meeting your clients or suppliers as often as possible in order to maintain good relations and communications.

2. Use metric measurements, forget all other systems. Inches, pounds, feet, yards are not part of the Mexican culture. This is especially true for your promotional material and catalogues.

3. Don’t expect business people will return your phone calls. If the business item is important you should call several times.

4. Business negotiations will always be preceded with small talk and light conversation. This may continue for some time before business is finally discussed. Dinners and lunches are important for negotiations and often the items of real importance surface over coffee and dessert.

5. Proper etiquette and manners are very important. You will find the Mexicans are very cordial and polite, and they expect the same treatment from others. This is true for business and social occasions.

6. Secretaries and personal assistants are very important. They control who has access to executives and decision-makers. Many times they are responsible for answering the executive’s email and correspondence. Never underestimate the power of the secretary, and always maintain a friendly cordial relationship with them.

7. Meetings don’t start, or end on time. Don’t come late, but don’t get angry or upset when it doesn’t happen at the appointed hour.

8. The entire country shuts down from December 15 until about January 3 for vacations. Do not expect to find decision-makers in their offices, and expect slowdowns in logistics, paperwork and other communications during this time.

9. Everyone has a cellular phone. Get the cellular phone numbers of your contacts to avoid the filters in place at the office.

10. Mexicans tend to be reserved with foreign business people in the first business encounters. Business in Mexico is based upon trust between people. Take the time to create a relationship and build trust with your clients and suppliers. Don’t be in a hurry to close the deal. Don’t be in a rush to get the business over with. Don’t be afraid to visit several times without a specific work agenda. Get to know the people and culture.

11. Mexicans don’t like to disappoint others, and may prolong and delay bad news until the last possible moment. This can be prevented by establishing many short term objectives and chronologies. Constant open communication will also provide opportunities to discuss and find solutions for any set backs before it becomes a major problem.

12. Always try and deal with the boss or top executives. Business is done, approved and maintained by the top levels in the organization. Make sure the Mexican company understands that you are your company’s top executive with important decision-making powers.

Related Links

How to negotiate with Mexican business people

Meeting people in Mexico -kiss, shake hands or hug

Before you go on your business trip to Mexico

Tip: How to call Mexico from the US

How to do business in Mexico, parts 1 – 28





Curriculum Vitae (español) – Lee Iwan

29 08 2006

Lee A. Iwan

Lee.iwan@gmail.com

 

Desarrollo de Negocios – Executiva Internacional

Planeacion Estrategico * Operaciones * Descubrimiento de Oportunidades

Executivo con experiencia en posicionamiento estrategico, operaciones, gerencia, distribucion, desarrollo y descubrimiento, integracion del cadena de suministro, planeacion estrategia en nuevos negocios, negocios de rapido crecimiento y en organizaciones maduros. Orientada a resultados, lider decisiva, exitoso en la identificacion de mercados nuevos y la solucion pragmatico de problemas. Historia de éxito en incrementando ventas, participacion en el mercado global y utilidades. Prospera en ambientes dinamicos y fluidos mientras manteniendo enfoque y organización. Competencias incluyen:

Planeacion estrategica y su implementacion * Identificacion del mercados
Gerencia de Cambios * Gerencia de Operaciones
Desarrollo de Negocios * Portavoz * Liderazgo del Equipo

 

EXPERIENCIA PROFESIONAL

QUIMICA CENTRAL DE MEXICO S.A. de C.V., Gto. México
mayo 2005 – presente
Gerente de Negocios, Desarrollo y Descubrimiento

Executivo independiente reportando directamente al Director y Consejo de Administacion. Responsible por la visulaizacion, investigacion, creacion, comunicacion, seguimiento, analisis, planeacion y implementacion del desarrollo y descubrimiento de nuevos negocios y proyectos de diversificacion estrategicas.

Logros importantes:

  • Lider del negociaciones y proyecto, Joint-Venture farmaceutica (Mexico-Suiza), fabricacion y comercializacion, acuerdo firmada enero 2006.
  • Negociaciones para alianzas estrategicas para incrementar la posicionamiento global y nacional del empresa a largo plazo.

QUIMICA CENTRAL DE MEXICO S.A. de C.V., Gto. México
marzo 2000 – mayo 2005
Gerente de Negocios, Ventas y Proveedores Internacional

Responsable por descubrimiento de negocios y alianzas estrategica, participacion del equipos, inteligencia del negocio, estrategia para las Asia-Pacifco y America Latina, implementacion de ventas y desarrollo del mercado, control y manejo de distribuidores y agentes, gerencia de logistica y cadena de sumistro, comunicaciones internacionales, globalizacion del cultura corporativa, projectos especiales corporativas.

Logros importantes:

  • Creacion y implementacion de estrategia de ventas y promocion para el mercado en Asia-Pacifico. Ventas de US $ 5 M en 3 años.
  • Iniciado y mantenido alianzas estrategicas con proveedores internacionales, ahorros de USD $ 2 M, fortificamos posicionamiento.
  • Negocio representacions exclusivo de empresas de Sud Africa y EUA. Valor de ventas primer año US $ 2.5 M
  • Incremento competitivida utilizando el departamento de exportacion a manejar y empujar cambios culturales corporativas en planeacion, produccion, tiempo al mercado, cadena de suministro y logisticas, ventas, mercadotecnia y administracion.
  • Negocio descuentos en logistica, ahorros de USD $ 500 K

QUIMICA CENTRAL DE MEXICO S.A. de C.V., Gto. México
julio 1998 – marzo 2000
Gerente de Exportaciones

Responsable para ventas, distribucion, mercadotecnia y desarrollo del negocios en 20 paises, incluyendo America Latina, EUA, Europa y Taiwan.

Logros importantes:

  • Creacion estructura de precios bases y comisiones para agentes y distribuidores en America Latina, resultados incremento en lealtad y ventas de 8%.
  • Re-ingenieria de sistemas administrativas de comunicaciones, facturacion y envio del los productos para incrementa leatad con clientes y distribuidores y incrementar ingresos.

 

MARLY MEXICO SA de CV – Leon, Guanajuato, Mexico
1994 – 2005
Consultor

CLUB ROTARIO LEON – Leon, Guanajuato, Mexico
1997
Consultor

NUVIDA S.A. de C.V., León, Guanajuato, México
enero 1994 – julio 1998
Dueño – Presidente – Fundador

Presidente y Director de Operaciones para negocio de servicios. Clientes corporativos, gobierno y privadas. 80 empleados.

FOLLAS NOVAS S.A. de C.V., Silao, Guanajuato, Mexico
septiembre 1993 – junio 1994
Socio

Proyecto de produccion y supervision de operaciones

FLOWERS FLOWERS INC., Evanston, IL, EUA
marzo 1986 – agosto 1993
Dueño – Presidente – Fundador

Presidente y Director de Operaciones para innovadora start-up negocio de bienes y servicios para el consumidor. Ventas de USD $ 750 K anual.

AMLINGS FLOWERLAND, Niles, IL, EUA
junio 1980 – mayo 1986
Gerente de Sucursal

Responsable por operaciones del sucursal. 70 empleadas. Ventas USD $ 3 M anual.

 

EXPERIENCIA LABORAL DURANTE UNIVERSIDAD Y PREPARATORIA

RECORD CITY, Niles, IL, EUA

KAPS, Champaign, IL, EUA

UNIVERSITY OF ILLINOIS, College of Agriculture, Urbana, IL EUA

UNIVERSITY OF ILLINOIS, College of Life Sciences, Urbana, IL EUA

CRATE & BARREL INC., Chicago, IL EUA

SKIL SAW INC.., Wheeling, IL, EUA

UNITED PARCEL SERVICE, Northbrook, IL EUA

IWAN ELLIS PAINTING, Northbrook, IL EUA

FOLEY KOCH LANDSCAPING, Mount Prospect, IL, EUA

ALLGAUERS RESTAURANT, Northbrook IL EUA

DUNKIN DONUTS, Wheeling, IL EUA

JEWEL FOODS, Wheeling, IL EUA

DEPUSSEY CATTERY, Northbrook, IL EUA

EDUCACION

Bachelor of Science Agricultural Economics, University of Illinois – Urbana, IL, EUA

LOGROS PROFESSIONALES

Weblog: https://leeiwan.wordpress.com April 2006- Presente

Conferencia de la Industria de Cromo, Sud Africa, 2006

Mision Comercial, Mexico India 2005

Curso – Finanzas por no financieros, 2005

Consejero de COFOCE, Comité de proveedores, industria del calzado, 2000 – Presente

Participación en la certificación del ISO 9001:2000, 2004

Misión de Proveeduría, Moscu, Rusia 2004

Misión de Proveeduría, Estambul, Turquía 2003

All China Leather Exhibition, Shanghai, China, 2002 – 2005

Guangzhou Leather Fair, Guangzhou, China 2002 –2005

Misión Comercial México-Centro América, 2002

Asia Pacific Leather Fair, Hong Kong, 1999 – 2005

Linneapelle, Bolonia, Italia 1999 – 2005

Misión Comercial México-China, 2001

Misión Comercial México-Centro América, 2001

Misión Comercial México – China, 2000

Mision Proveeduria, Amsterdam, Holanda, 2000

Miami Leather Fair, Miami, EUA, 2000

FENAC, Leather Fair Novo Hamburgo, Brasil 1999

Miami Leather Fair, Miami, EUA, 1999

Curso – Resolución Miscelánea de Comercio Exterior 2004 a Fondo

Curso – Resolución Miscelánea de Comercio Exterior 2003 a Fondo

Diplomado – Modificaciones a La Legislación Aduanera 2003

Curso – Resolución Miscelánea de Comercio Exterior 2002 a Fondo

Diplomado – Logística de la Comercio Exterior, 2001

Curso – Resolución Miscelánea de Comercio Exterior 2001 a Fondo

Diplomado – Comercio Exterior, 2000

Curso – El Vendedor Estratégico

Periódico AM, Periódico. 1994 – 1996

Society of American Florists, Consejo Editorial, Washington D.C., EUA 1990 – 1992

Chicago-Dempster Merchants Association, Vice-Presidente, Evanston, IL EUA 1998-1990

Lee.iwan@gmail.com





How to negotiate with Mexican business people

25 08 2006

Mexico has a culture that embraces and enjoys negotiations. From the schoolyard to the local markets to the executive boardrooms, negotiations are an important part of everyday life for Mexican citizens.

Mexican business people are good negotiators and enjoy the process.

You can expect tough negotiations if you are doing business in Mexico. Tough negotiations in the sense that they will question everything, and spend a great deal of time trying to get you to accept their point of view or conditions. The arguments may be based on emotions or facts, or both.

You should always come into the negotiation very well prepared. Know what you want, and have the evidence to support your claim. Your arguments, supported by facts, will be heard and processed by your Mexican counterparts. If facts are presented that are new, take the time to verify the information and sources before you reach a conclusion.

Negotiations in Mexico can be compared to the first round of a sporting event, both sides desire to “win”, but rarely do they burst onto the field with all their energy in the first 5 minutes. The process of “feeling out” the opponent, observing their strengths and weaknesses, are critical to understanding how to develop a winning strategy and understanding what you are up against.

Mexicans are often seeking a long term, stable relationship with suppliers and clients. Focus your negotiations and decisions on creating a long term business relationship and strategy with your Mexican counterpart.

Your ability to negotiate will be a reflection of your company, your character, and your abilities as a business person. Take your time, don’t get emotional, support your arguments with facts, and be consistent with your demands or desires over time. The negotiation process is helping to build trust and credibility, it’s important to build solid foundations for your future relationship.

Don’t be in a hurry to end the negotiations. The Mexican culture is more permissive about time and deadlines than you find in USA or Europe. If you are in a rush, you will lose important negotiating power.

Always start your negotiation with some margin and leeway. It will always to be to your advantage to “give” a little before the negotiations are over. It may take 4 hours for you to “give in”, but the gesture will be seen as your willingness to do business and enough for the negotiator to claim a little victory. Everyone wins.

Write down your final agreement, and the results of your negotiations and have both sides sign and retain a copy. This simple step will avoid any language, communication or interpretation problems that may develop in the future.

Related Links

Meeting People in Mexico – kiss, shake hands or hug

Before you go on a business trip to Mexico

How to do business in Mexico, parts 1 – 28

16 Essential Questions – International Business Traveller’s Quiz





10 Things you should never do on a Friday afternoon

24 08 2006

To complement my list of 10 things you should do on a Friday afternoon (Link), here are some of the activities that should be avoided on Friday afternoons.

Things you should never do on a Friday afternoon

  1. Initiate a major project
  2. Schedule any type of meeting or seminar with customers or employees
  3. Give an employee review
  4. Make important strategic business decisions
  5. Ask people to work extra hours
  6. Give bad news to the office, your team or co-workers
  7. Raise your rates or product prices
  8. Obsess about or relive any failures that occurred during the week
  9. Go out for a 3 martini lunch and come back to the office complaining
  10. Give the boss an ultimatum or try and force a decision

Related Link

10 things you should do on Friday afternoon