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    Why Business is Personal in Asia

    AsianCulture Leadership SalesBusinessDevelopment

    **Why Business is Personal in Asia**


    If you’ve spent most of your career in Western markets, you’ve likely had the phrase "It’s not personal, it’s just business" drilled into your head.


    It’s a defense mechanism. It’s a way to compartmentalize the stress of negotiations and the sting of rejection. It implies that logic and profit should always trump emotion and relationships.


    But if you are expanding into Asia—whether it’s Singapore, Tokyo, Seoul, or Jakarta—you need to unlearn that mantra immediately.


    In Asia, *business is personal*. In fact, it is deeply personal.


    One of my clients learned this lesson early in his career while negotiating a partnership in Southeast Asia. He walked into the meeting with a killer slide deck: projections, KPIs, and a timeline that maximized efficiency. He was ready to "win the deal".


    He failed. The feedback he received later wasn’t that his numbers were wrong. It was that the counterpart (business partner) didn't "feel comfortable" yet. They didn't know him. They didn't know if he could be trusted when a crisis hits the business.


    Here is the reality of the Asian business landscape: **The contract is merely a formality. The relationship is the actual agreement.**


    In many Western contexts, trust is often derived from the contract. The lawyers hash out the details, and the relationship is secondary. In most Asian contexts, it’s the exact opposite. Trust is derived from the relationship. Once trust is established, the contract is simply a piece of paper to satisfy the lawyers.


    **What does "personal" actually mean in this context?**


    **1. The "Kaki" Factor (The Social Bond)**

    In Singapore, they call it "Kaki," which roughly translates to a buddy or a confidant. In Japan, it’s about *nemawashi*—informal consensus-building that happens outside the boardroom, often over drinks or dinner. If you are strictly transactional—get in, get the deal, get out—you will miss the nuance. You need to spend time. You need to eat the food. You need to sing the karaoke, even if you can't carry a tune.


    **2. The Concept of "Face" (Mianzi)**

    In Asia, "Face" (dignity, reputation, and social standing) is a currency more valuable than cash. If you embarrass a potential partner in a meeting by correcting them, or if you win a negotiation so aggressively that they lose face, you haven't won. You have lost a future ally. Personal relationships allow for the preservation of face, which allows for long-term collaboration.


    **3. Emotional Intelligence (EQ) > IQ**

    In Asia, the smartest person in the room isn’t the one with the highest IQ; it’s the one with the highest EQ. Can you read the room? Can you sense the hesitation behind a "yes" that actually means "maybe" or a "we'll think about it" that actually means "no"? This requires a personal connection that goes beyond spreadsheets.


    **The Takeaway:**


    This isn't about being soft. It's about being smart.


    The "personal" nature of business in Asia is a feature, not a bug. It creates loyalty that Western transactional models rarely achieve. Once you are "in" with a partner in Asia, you aren't just a vendor—you are part of the family. They will defend you, promote you, and stick with you during hard times.


    So, put down the slide deck for a second. Take your counterpart to lunch. Learn about their past, their personal likes, their ambition and their family. Be open to them. Be a trusted friend first, before you ask them to be your business partner.


    Because in this part of the world, the best business deals are built on shared meals, not just shared metrics.

    **Have you experienced the shift from transactional to relational business in Asia? Let me know in the comments.**


    #BusinessInAsia #Leadership #Culture #GlobalBusiness #Networking

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    How to lose 90% of your customers in 5 years?

    Business-model BusinessTransformation Leadership

    How to lose 90% of your customers in 5 years?


    In 1995, Netscape Browser was the best browser. I remember talking with my friend Andrew who had the idea to bring this business solution into Asia. 


    1995: 90% market share

    1996: 86%

    1997: 51%


    Netscape didn't just lose; they committed suicide. They had a 90% market share. And they threw it all away because they forgot the most important rule: Focus on what the customers want.


    Here's how they blew it:


    1. The Rewrite Trap: 

    This was their biggest error. They re-wrote their code, meaning they stop new releases for 3 years to "clean up your code". While Netscape was busy, the world moved on. You don't win by being perfect later; you win by being better right now.


    2. Software Bloat: Turned a browser into a "suite" of emails, newsreaders, etc. Became slow & buggy. Users want a tool that works.


    3. Wrong Business Model: Trying to sell when the competitors were giving it for free. Microsoft realized the browser wasn't a product; it was a feature of the operating system. Google's free browser was a door to their world of fast searching and apps, while profiting from ad revenues. 


    By the time Netscape realized they were in a fight, the fight was already over.


    It's been 30 years. Has successful startups learnt this lesson? Or are they still bragging about their 1st-mover advantage that gave them a major share of the market (for now).


    1st-movers in the past:

    1. 1st successful PDAs: PalmPilot 1000(1996). 

    2. 1st digital music player: MPMan F10. 

    3. 1st digital camera: Kodak 1975.

    These companies don't exist today. 


    Marc Andreessen, Netscape cofounder: "Netscape will soon reduce Windows to a poorly debugged set of device drivers". this quote didn't age well..

  • Published on

    Business is always personal in Asia.

    AsianCulture Leadership Recruitment

    Business is always personal in Asia.


    We often assume business is a universal language, but the "dialect" changes drastically across borders.


    In many Western contexts, the sales revenue or transaction is king. But looking through an Asian lens, all business is personal. It isn't just about contracts or invoices; it is about the human connection & lifelong trust behind them.


    There is a profound preference for harmony. Rather than the "move fast and break things" approach—often viewed as the destruction of the normal order—there is a focus on stability, respecting hierarchy, and maintaining balance.


    This "Let's not change anything" miindset heavily influences leadership expectations. Asian bosses typically prioritize deep, demonstrated loyalty from their existing staff over the ambitious new hires. However, new hires who can lead and execute the business plan will win over the bosses. It is not about the volume of your voice in the boardroom, but the depth of your commitment after you leave the room.


    To navigate the global market, we must move beyond our own cultural defaults and appreciate these nuances in Asian markets. What works in one city may not in another Asian city..


    How do you balance the drive for business transformation (disruption) with the need for harmony in your professional relationships? What happens when the firm faces a crisis unsolvable using existing leadership?


    #DigitalTransformation hashtag

    #ChangeManagement hashtag

    #BusinessTransformation hashtag

    #BusinessCulture hashtag

    #GlobalBusiness hashtag

    #Leadership hashtag

    #Networking hashtag

    #AsiaBusiness hashtag

    #AsianCulture

  • Published on

    That’s not hiring. That’s a betrayal.

    AsianCulture In-Demand-Skills Leadership SocialResponsibility

    When I was managing a team, we had this sacred rule: never, ever let the people who got us here feel like they’re worth less today than yesterday.


    And yet, I see it happening everywhere in recent years. Companies hiring in a frenzy. Salary for new talent have exploded (sales, engineers, designers, product people). A fresh graduate suddenly makes 30% or 40% more than the person who’s been bleeding for the company for 5 years. Same role.


    That’s not hiring. That’s a betrayal.


    You know what it feels like when you’ve been at a place for years, you’ve shipped incredible products, you’ve worked nights and weekends, you’ve turned down better offers because you believed in the mission… and then some new person walks in, glances at the code you wrote, and gets paid dramatically more than you? It feels like a slap in the face. It feels like the company is saying, “Thanks for working long nights building this thing. Now step aside, the new guy’s more valuable than you.”


    That’s how you destroy a culture. That’s how you kill the soul of a team.


    I’ve seen it. I’ve felt it in the hallways. The best people (the ones with taste, the ones who care deeply, the ones who made the products insanely great) they don’t complain loudly. They just quietly update their résumé. And one day they’re gone. And when they leave, they take the magic with them.


    So here’s what I would do:


    1. Never let the market dictate your soul.

    Yes, you sometimes have to pay crazy money to get the right person. Fine. But the moment you do that, you go back to every single person on the team who’s in a comparable role and you tell them that we’ll review their salary upwards in the next budget. You just do it. Because new people's pay might get disclosed (somehow).


    2. Equity is the great equalizer.

    Cash salaries get compressed and distorted by the market. Shares doesn’t lie. Give people real ownership that grows with the company they helped build. When the company does well, the people who were here in the begining will get insanely high stock valuations. That’s how you keep the early believers believing.(and staying)


    Great companies aren’t built by the people who joined yesterday. They’re built by the people who stayed through the dark days, who shipped the impossible, who cared when it wasn’t cool yet.


    If you let salary inflation turn those people into second-class citizens, you don’t just demotivate them; you lose them. And when you lose them, you lose everything that made your company special in the first place.


    Take care of the people who took care of you.

    It’s not complicated.  It’s the right thing to do.


  • Published on

    2024 is over. what now?

    BusinessTransformation In-Demand-Skills Interviewing Leadership
    As 2024 comes to a close, here's something we hear constantly from our clients...  In a market-driven economy, when hiring candidates, the most important is to find their VALUE proposition that improves the company's performance (in sales, customer services, innovation, etc).  
    What you need:
    - Results-focused mindset
    - Innovative thinkers, who are unafraid of changing legacy ways of working
    - Agile leaders who can adapt and evolve with the changing customer needs

    Finding talent who can "get it done" is crucial.

    Passion without skills is a ineffective
    Work without Passion is meaningless
    Passion + work = having a meaning in life.

    Adapted from  https://www.linkedin.com/posts/george-stern_stop-hiring-and-promoting-the-wrong-people-activity-7274771570122747904-HkUb?utm_source=share&utm_medium=member_desktop

    https://www.linkedin.com/in/george-stern
  • Published on

    East VS WEST?

    AsianCulture Leadership
    Understanding the differences between Western and Asian cultures and work ethics is crucial for fostering effective collaboration and mutual respect in a global workplace. Here are some key distinctions:

    Cultural Differences between East and West at the workplace:

    Individualism vs. Collectivism:
    - Western Culture:
    • Generally emphasizes individualism.
    • People are encouraged to express their own opinions and pursue personal goals.
    • Independence and self-reliance are highly valued.
    - Asian Culture:
    • Often focuses on collectivism.
    • Emphasizes group harmony, family, and community.
    • Decisions are frequently made with consideration of their impact on the group or community.

    Communication Styles:
    - Western Culture:
    • Typically more direct and explicit in communication.
    • People value clarity and straightforwardness.
    • Open debate and discussion are common.
    - Asian Culture:
    • Communication tends to be more indirect and nuanced.
    • Emphasis on context and reading between the lines.
    • Respect and harmony are maintained by avoiding direct confrontation.

    Hierarchical Structure:
    - Western Culture:
    • More egalitarian and less hierarchical.
    • Leaders are often accessible, and open-door policies are common.
    • Employees may feel comfortable voicing opinions and challenging superiors.
    - Asian Culture:
    •   Often more hierarchical with a clear respect for authority and seniority.
    •   Decisions are usually made by higher-ups, and subordinates may be less likely to challenge authority.
    •   Emphasis on respect for elders and those in higher positions.

    Attitudes Towards Change:
    - Western Culture:
    • Generally more open to change and innovation.
    • Encourages risk-taking and experimentation.
    • Adaptability and flexibility are valued traits.
    - Asian Culture:
    • May be more conservative and risk-averse.
    • Preference for maintaining tradition and stability.
    • Changes are often implemented gradually and with caution.

    Work Ethic Differences

    Approach to Work:
    - Western Culture:
    • Work-life balance is emphasized.
    • Flexible working hours and remote work options are increasingly common.
    • Productivity is often measured by output and results.
    - Asian Culture:
    • Strong emphasis on hard work and dedication.
    • Long working hours and presenteeism are common.
    • Loyalty to the company and perseverance are highly valued.

    Team Dynamics:
    - Western Culture:
    • Encourages teamwork but also values individual contributions.
    • Team members may have clear roles but are expected to take initiative.
    • Collaboration is often structured and task-oriented.
    - Asian Culture:
    • Strong focus on teamwork and collective effort.
    • Emphasis on group harmony and avoiding conflict within the team.
    • Team members may defer to the group consensus or leader's decision.

    Decision-Making:
    - Western Culture:
    • Decision-making can be quick and is often based on data and analysis.
    • Individual accountability is emphasized.
    • Openness to debate and different viewpoints is encouraged.
    - Asian Culture:
    • Decision-making can be slower and more deliberate.
    • Consensus-building and ensuring everyone’s opinion is considered are important.
    • Decisions often take into account long-term impacts and relationships.

    Reward and Recognition:
    - Western Culture:
    • Individual achievements are often recognized and rewarded.
    • Performance-based incentives and promotions are common.
    • Public recognition and praise are typical.
    - Asian Culture:
    • Group achievements are frequently recognized.
    • Rewards and promotions may be based on seniority and loyalty.
    • Praise may be given more discreetly to avoid singling out individuals.

    Understanding these cultural and work ethic differences is crucial for fostering effective communication and collaboration in multinational teams. By respecting and integrating diverse cultural perspectives, organizations can create more inclusive and productive work environments.