As this month’s issue of the McKinsey Quarterly describes in Building Brands in Emerging Markets, emerging market consumers are more heavily influenced by personal recommendations from friends and family (as well as early brand awareness and a positive in-store experience). So, simply relying on a long-distance, virtual marketing won’t work too well. This can be expensive for smaller companies who might hope to market across the Pond, so to speak, without investing in a lot of local representatives, local marketing materials etc…

If you are such a seller–whether a seller of professional services or products–use this McKinsey data to target emerging market buyers more effectively. Ask, “How can I reach my target consumer, and then encourage word of mouth marketing to their friends and family? What’s unique about their culture that I can utilize to make my service/product more compelling?”

Perhaps launch a promotion tied to one of their national holidays, or national pastimes–even if it isn’t something that appeals to you or would work in America. Or, attract clients  by stressing the American origins of your service/product; ABC News recently reported that “Made in America” products have increased in China 542% over the past ten years. (For more on attracting Chinese middle class consumers by advertising American origins, watch “Made in America Products  Selling in China).

A new study published in Psychological Science finds that thinking through issues in a foreign language reduces bias, producing a more balanced result. In other words, how an issue is described (whether as a potential gain or loss) in the thinker’s native tongue clouds the thinker’s ability to analyze the data objectively.  This bias disappears when the thinker shifts to thinking in a foreign language.

So, the next time that you ponder a global business issue, try pondering it a foreign language of your choice.   You are bound to weigh the risks and rewards more  accurately.

Recently I’ve worked with global executive who is based in one part of the globe but reports to US headquarters. A lot of friction had developed between the executive and her superiors. Her corporation’s US-centric corporate leadership had struggled to understand the challenges she faced in her part of the globe.

We began to prioritize her forging stronger relationships with US management. For example, she made an effort to increase “face time” with these superiors, whether in person or via conference call, and to clarify (and meet) their expectations etc… She made a point of attending optional offsite meetings rather than always eschewing them in favor of pressing work in her region. Finally, she became more adept at managing cross cultural differences–communicating with colleagues at headquarters more directly, as her American colleagues did.

Implementing this plan wasn’t always easy. It required her to delegate more to her direct reports in her region, and to travel to the US more often. But she realized that to succeed in her geographically distant region, she needed people she could depend on at headquarters to tell her the truth and help her sidestep minefields long distance.

Her efforts to build and nurture strong relationships at headquarters–up, down and across the corporate hierarchy–paid off. She was promoted and received a raise when management began to understand her value and see her as a team member.

Global leadership success demands such strategic partnerships across cultures. “New leaders are those who are adept at building partnerships, both one-to-one and one-to-many, as a matter of habit” said Marshall Goldsmith and Maya Hu-Chan in Being an Effective Global Leader. 

Today’s effective global leaders know this truth:  Build strong relationships habitually–and main them across the miles, even when difficult.

So what does this mean for those of us working globally? If we end up negotiating in another language, will our messages be mistrusted?

Solutions include (1) working with a native speaker to coach you in your accent, (2) bringing a native speaker to the meetings as a fellow negotiator or interpreter, (3) and building personal relationships (and with the other parties before business begins.  Trust and credibility built in advance may outweigh such subconscious mistrust.

Yet another reason to build powerful business relationships across cultures.

Even financial advisory companies are beginning to use social media, although, like many professional service providers, they must be careful about client confidentiality and related issues. (Note the Financial Industry Regulatory Authority’s January 2010 Regulatory Notice on Guidance on Blogs and Social Networking Sites, and comments on it posted on SocialMediaToday).  Interest in social media spurred on consultancies like Advisorlocity, which  offers  a social media starter kit for financial service companies.  CEO Bruce Johnston told MutualFundWire.com that he aims to help financial services companies utilize social media networks such as LinkedIn, Facebook, and Twitter.

But how can these social media tools be used creatively to attract potential clients? Markitecture, a DC area marketing firm, suggests that an architecture firm could engage potential clients by chronicling (via Twitter and Facebook etc…) a high-profile project from start to finish.  Not only would this give readers a reason to return to the site again and again, deepening their mental commitment to the firm, it would also give potential clients insights into how the firm works on projects. In addition, Markitecture recommends that architects start a Facebook page focusing on a particular neighborhood or targeted area in the city, constantly updating the page with news, photos, and area history.

For professionals who work internationally, social media’s long reach can be powerful. Building on Markitecture’s example above, architects working in Dubai, Dublin and Denver could showcase their global projects through social media, thus reaching potential audiences globally.  Similarly, accountants, financial advisors and other professionals could create numerous blogs or pages on their home websites, each targeting clients in a particular region of the world—and also  communicating their overall global expertise.

And so, it was fitting that I spotted an article in the March 9th issue of the International Herald Tribune about how cross cultural understanding is the KEY to international business success.  Tanya Mohn gave several good examples–my favorite being about how a British proposal to an American firm fell flat because it began by listing all the pitfalls and risks. While the Brits thought they were doing a good job of disclosing the downside, their approach turned off the American clients.  Resubmitting the proposal with a positive spin clinched the deal.

In the Frankfurt business lounge I heard Russians negotiating with Aussies, and Italians speaking to Germans, to name a few.   Somehow we expect cultural business differences to arise between those folks–after all, they don’t speak the same native language–but not between Americans and British. However, yesterday’s article proved to the contrary. For a business payoff across cultures, you must know the other side’s cultural outlook–even if you both speak the same native tongue.

As this shows, professional service firms don’t have to be big players on the global scene–or be located in an international business hub–in order to develop business globally.

Just like JMGR, which now has designed hospitals in booming Chinese cities like Shanghai and Tianjin,  professional service firms can look for ways to take advantage of the increased growth in emerging markets. And cash-rich companies in emerging markets, like India and China, are also expanding abroad (creating even more opportunity for professionals). For instance, Indian corporation Tata upped its global prominence with the 2008 purchase of British-owned Land Rover and Jaguar–which is, according to Market Watch, part of an “aggressive expansion”.

In contrast, desperate Western companies are looking to move into emerging countries due to the slim prospects for growth at home.  For example, British insurance company Prudential has announced plans to purchase the Asian assets of American International Group for $35.5 billion;  Asian earnings would account for more than half of Prudential’s overall profits.  The Economic Times reports that American company Kraft purchased the British company Cadbury in part because of Cadbury’s Indian holdings.  After all, 38% of Cadbury’s recent growth came from emerging markets (as opposed to Kraft’s mere 20%).

Regardless of whether the expansion is into emerging or other foreign markets, the point is that companies are expanding globally.  And the globalization of companies creates more work for service providers such as accountants, engineers, lawyers, and architects.  So, how can you successfully capitalize on this international growth? Learning from JMGR, the answer may be simple.  As the story of Wang and the Memphis architects shows,  a simple business relationship  “can translate to a long-term, mutually beneficial business relationship”.

As noted above, high cost was the primary reason that corporate counsel fired outside firms. In the international arena, the Magic Circle and other large global firms are known for charging some of the highest hourly rates around. One way to combat high hourly rates is, of course, to adopt alternative billing structures that focus on value rather than hourly billing. For example, the In-House ACCess blog describes how footwear company Wolverine Worldwide and outside counsel Seyfarth Shaw are negotiating to work out a value-based relationship, and the metrics being proposed by each side. For example, in-house counsel proposed a “Trademark Risk Rate” which included total dollars spent on trademark defense divided by the number of trademarks defended. Outside counsel, however, proposed a different set of metrics including Overall Satisfaction and Timeliness of Communication. As the post notes, the parties are in the midst of working out the metrics. However, their efforts show a willingness to create alternative fee structures up front.

As noted in the first paragraph, poor service is another common reason that in-house counsel fire outside firms. However, sometimes differences in cultural expectations can create an unintended impression of “poor service”. Do you know each client’s cultural expectations–and are you meeting them? For example, what are your client’s expectations about work product timing? Is their sense of time fluid, or do they expect advance warning and justification of any schedule changes? Are your clients willing to work directly with lower-level attorneys or do they expect to interface with senior partners to feel that they are receiving good service? (See also Effective Cross-cultural Lawyering in this blog.)

As the Acritas study notes, clients also leave when a firm lacks the right kind of expertise or delivers bad legal advice. Client-attorney cultural misunderstandings, as well as separation by time zones and distance, increase the chance that clients’ expectations won’t be fully met. So, when dealing with a potential client, spend extra time clarifying what kind of legal expertise they are seeking and honestly assess whether you can match it. If you can’t meet their needs, then refer the matter to another trusted lawyer. It is far better for clients to get the legal expertise that they desire rather than to damage your brand by not meeting expectations.

Finally, plan ahead for transitions. When a client’s project ends or the client’s primary lawyer contact leaves your firm, be ready to maintain and nourish the client relationship. This can take extra effort across the miles, but try to maintain open lines of communication with all former clients. Sending articles of interest with handwritten notes is an easy but personal way to show continued interest. Of course, personal visits anytime that you are in the client’s city help to maintain a warm relationship, too.

Implementing these tips will help decrease the chances that you will get fired, despite distance across the miles and time zones.

One of the most exciting conferences for interactive (technology) as well as film and music is going on right now in Austin:  SXSW .  Social Media Today’s Lee Oden, blogging live from SXSW, posted some great tips for effective live blogging while at SXSW.

Lawyers could apply these same tips while blogging and posting live during legal or industry conferences.

For example, Lee suggests checking out the conference schedule in advance, and planning to arrive at key sessions early (so that you’re seated near a plug.) I’d also suggest examining all concurrent sessions and selecting ones that would be particularly interesting your blog readership.

Lee suggests typing the posts in an application like Notepad and then transferring them to your blog. This works well in case you lose your internet connection during a session.

Promoting your posts immediately is also key, Lee notes, via Facebook, LinkedIn and the like. To take advantage of the “real time” nature of your blogging efforts; you want to get the word out fast.

Live blogging has an excitement and sense of “urgency” that blogging after the fact doesn’t (much like live journalistic coverage is more thrilling than recap reporting). Of course, blogging during conferences is also a great way to reach readers across the globe who couldn’t ravel to attend the conference in person; even if they read your posts the next day rather than in real time, the coverage will still be fresher than the summaries printed in post-conference newsletters months later.

But what about lawyers who wants to start networking internationally?

Facebook is a good, general place to begin international social networking expansion, especially with the 2008 launch of Facebook en español (with French and German versions expected next). In South America, Orkut, Sónico, and Fotolog are also very popular, with 54% of Orkut’s users being Portuguese speakers from Brazil. (Americas Quarterly reports that asking a Brazilian for his/her “Orkut name” is as common as requesting a telephone number or email.)

The Google-owned Orkut remains popular in India, although Facebook recently unseated it as the most popular social networking site. Friendster continues to be popular in Singapore, Philippines, Malaysia, and Indonesia, although its influence in the region is slipping–coinciding with Facebook’s rollout of sites for Malaysia, the Phillipines and Vietnam. China boasts a number of popular social media sites. According to ReadWriteWeb, while China’s Renren.com may have the most members, but Kaixin001.com claims to have more educated members.

Lawyers wanting to reach European clients should consider joining European social networking sites in addition to Facebook. According to Bas van den Beld, owner of stateofsearch.com, Facebook leads the way in 11 out of 17 European countries, but Skyrock (France), Tuenti (Spain), StudiVZ Group (Germany), Hyves (Netherlands), all have hold in their respective country. The social networking site  Xing (founded in Germany) markets to all European professionals.

Creating a social media presence abroad can be an effective and inexpensive way to start relationships globally. Why not extend your social media reach abroad into your prospective clients’ backyards?

Becoming a popular press source:

http://www.profitingwithpublicrelations.com/2010/01/becoming-a-goto-source-for-the-press.html

Working well with the foreign press:

http://www.profitingwithpublicrelations.com/2010/01/draft.html

To the latter post I commented that  knowing how to communicate with reporters from foreign cultures can be invaluable. Americans tend to be very direct communicators, very individualistic, and comfortable with self promotion. As a result, many American lawyers are quoted with a string of sentences beginning with, “I think…”, “I know…” and “In my opinion…”. Although lawyers should make their opinions known, when communicating with a reporter from a less individualistic and more indirect culture, American lawyers should avoid starting every sentence with “I”.

So, while sitting in the Frankfurt airport’s business lounge yesterday, I was interested to happen on a story about just that–but in this case, the “negative spin” was caused by a cross-cultural discrepancy. As my  Knowing how another culture thinks = Payoff post in my Global Rainmaking blog notes, one culture’s concept of detailing business risks (British, in this case) may discourage potential clients in another culture (Americans, in this case).  Again, the potential American clients didn’t like the British proposal because it seemed too negative; this was caused by a basic difference in the the parties’ respective cultural attitudes about disclosing business risks and rewards.

As mentioned, one of the great things about yesterday’s article in the International Herald Tribune is that it shows how increased awareness of such cultural business differences improves the chance of global business success. So, before submitting your next client proposal, you might do a culture check; even if the language is the same, the cultural norms and attitudes might differ.

Joe Pistone, who worked for the FBI for 27 years as an undercover agent, cautions people against putting too much information on social media sites. As Pistone told Computer Weekly, Russian and Italian Mafias are using data from such social media public sites to extort businesses and individuals.

Similarly,  David Rappe, a former US Army commando and expert with the security firm Beyond Risk, warns that kidnappers are becoming much more sophisticated regarding their research of potential prey. Like the Russian and Italian Mafias,  kidnappers within Venezuela (and other nations) are scouring Facebook, and even creating false profiles, in an effort to learn routines and financial holdings of their intended victims.  The son of  wealthy Mexican businessman Alejandro Marti was kidnapped and murdered, a crime aided by the son’s on-line postings. As Rappe told TIME, it’s not actually being risk that puts you in danger but rather “the appearance of being rich.”

In an effort to protect their lawyers, many law firms with such security concerns have opted not to publish individual lawyer photos on their online lawyer profiles.  Unfortunately, this can leave firm website looking cold and impersonal.

So how do lawyers take advantage of the internet and social media’s benefits (like the ability to connect with actual and potential clients), while mitigating the inherent  risks?

Social networking sites offer various levels of account security, but it is up to the user to employ them. In addition,  ComputerWeekly suggests these social media safety tips (and we have added a few of our own):

• Restrict viewing of your details to trusted persons.

• Never publish your full birth date.

• Don’t reveal your e-mail, phone number, or postal address.

• Question the motivation of unsolicited requests to be friends or group membership from persons unknown.

• Read the small print of any third-party software installed via social networking sites.

• Never arrange to meet strangers in person.

• Do not post your travel plans; carefully edit comments on past travel (avoiding revealing any pattern to your travel, or, like Rappe notes, appearing affluent.).

•Restrict descriptions of your personal and professional activities,  lest unscrupulous people figure out a pattern of your behavior.

•Some lawyers may want to omit personal photos entirely.  However, if your law firm already publishes your professional photo, use the same one on your personal social media page, to minimize the publicly accessible images of you.

•Use a “strong” password, and change it often.

Despite security concerns, social media is growing rapidly.  Americas Quarterly reports that in 2009, social media use in Latin America rose 83.3%. Mexican businessman Miguel Angel Oliva, Vice President of Public Relations and Corporate Affairs for HBO Latin America, spends a couple of hours every day updating his profiles on Facebook and on LinkedIn, especially since LinkedIn launched its Spanish version in 2008. “When I joined LinkedIn, I realized that it had a professional focus, that it was a serious business community.  I would recommend new users to join groups of interest, to develop their profile and participate actively on LinkedIn”, Oliva explains.

Professionals like Oliva have managed to incorporate social media networks into their business in a safe and effective manner.  Similarly, lawyers everywhere can safely utilize social media, as long as they are vigilant in what they are posting, and pay particular attention to whom they permit to see their profiles.

So, when writing articles, blog posts, or even letters to clients, how can you grab your reader’s attention? Although allusions to the “Jungle” and “Hostages” may not be appropriate, writing in a compelling way (not legalese) will set you apart from most lawyers.  Need help?  There are plenty of books, like Words that Work, to give you guidance.

Introducing John Otis