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29/06/2006Doing business in Australia and New Zealand

We discover that Aussies and Kiwis value common sense, politeness and modesty. Displays of power and status will not help if you want to be successful 'down under'.

Antipodeans are renowned for their friendliness and humour.

Dragons not sheep

"Australia rode to prosperity on the sheep's back. Wool and other farm exports paved the way for it to become the Asia Pacific's No. 5 economy. But these days, it's not sheep on which Australia is riding, but a Chinese dragon," says Bloomberg News journalist William Pesek Jr.
Pesek points out that although Australia is uniquely positioned to benefit from Asia's rise; geography is just one part of it, "because the real boon for Australia is its abundance of raw materials, which China - and increasingly India - needs to thrive."

However, there is a risk for Australia's prosperity. High taxes have driven many Australians out of their country, but Australian Prime Minister John Howard is doing his best to stop the brain drain: on 1 July 2006, income taxes will be lowered from 47 to 45 percent.

And it is not only Australia that's trying to attract highly skilled foreigners and to lure expatriates to return. New Zealand passed a Tax Bill on 3 April 2006 to attract highly qualified management potential to help ease high unemployment levels. The legislation takes significant steps to remove some of the tax barriers to international recruitment and aims to keep pace with similar reforms in Australia.

Easy does it

But what does it take as a foreigner to be successful in a market on the lookout for talented people and innovative business ideas? Both countries have a migrant background which makes for a very diverse community with a strong cultural mix. And although open to foreigners, their societies have no clearly identifiable expatriate communities that provide support and an immediate network.

The similarities with other Western cultures, even the shared English language with the UK and the US, provide a false sense of security. For example Australians and Americans both seem very egalitarian. But Americans are more likely to be impressed by titles, and seek respect for their own titles. Australians, on the other hand, are less likely to accept that someone is outstanding based on their title. They don't respond well to being told that someone is 'very good'. Australians prefer to meet the person and form their own judgement.

When dealing with New Zealanders, status symbols are likely to be counter-productive. Avoid all arrogance associated with class or personal status. Social hierarchy, for example, is the thing that New Zealanders report as being the hardest to accept.

Communication style

The Dutch probably rank first, but the Australians score high too when talking about direct communication styles. They are renowned for their friendliness, use humour and wit, but are remarkably clear when problems arise, disagreement surfaces or when criticism must be delivered.

However, that does not mean the English language spoken in Australia is always clear cut. Australians do use indirect ways of communicating. For instance, 'we must go for coffee soon' is just meant to be friendly, it's not an invitation. And a "five finger discount" is a pleasant way of referring to shoplifting. The use of adjectives is certainly more cautious than in American English. A 'disaster' in the American workplace is likely to be more of a 'problem' in Australia.

New Zealanders likewise are not particularly keen on people who use rhetoric. It's an insult when someone says "he/she likes the sound of their own voice". Informality is the trademark of the Kiwis. Politeness equals friendliness and generosity and lacks any form of superiority or paying of respect to seniority.

The 'Tall poppy syndrome'

If you are working with the Australians it's quite important to find a balance between competing for success and being a team-mate. Authority is disliked and everyone should be treated equally. Success should not be overtly celebrated as modesty is an appreciated virtue. The 'Tall poppy syndrome' as Australians call it. When a poppy flower grows too high, it gets cut down.
In working situations, Australians prefer nobody to stand out from the crowd in terms of achievement or success. Egalitarianism is a cherished idea and organisations have flat management structures. However when it comes to sports, 'Aussies' have quite a competitive nature. And although that success can be admired, it should be downplayed by the winner.


What about hierarchy?

In general, New Zealanders disregard hierarchy. They avoid displays of special respect towards senior people. It's all straight away on first-name basis. Colleagues socialise at all levels. Outside office hours, the hierarchy is even flatter: no differences of behaviour and address may be apparent.

New Zealanders typically operate on the principle of "if it’s taller than you, chop it down", a reflex which they share with the Australians. They are convinced that those who think highly of themselves should be brought down. It is especially true when someone, including repatriating New Zealanders, arrives from overseas, claiming to know better!

No faffing around please

Both New Zealanders and Australians are in favour of pragmatic, result-oriented and efficient societies. Negotiations progress rapidly and, although bargaining is not appreciated, you should always leave some room for give-and-take. In general, they look for mutual interests as the basis for agreement. Although conflicts are not avoided at all costs, they prefer to tackle a situation upfront and prefer an objective, logical, problem-solving approach whenever conflicts do arise.
 
Logical, factual arguments and professional opinions based on practical experience are used to solve issues. Instinct or, even worse from their perspective, 'gut feeling' should be avoided at all times.

Playing it down

 Down under likes a down-to-earth approach. The pioneering spirit of both nations has left them with a desire to be in control. They grew up believing that they will need to "do it for themselves". Negativism is not accepted here.

Despite the belief that they are individually responsible for their own successes, New Zealanders and Australians distrust enthusiastic praise. Particularly, New Zealanders doubt people who praise them repeatedly, or with too much overt enthusiasm. They feel they are being set up to be either humiliated or deceived. So be aware of this during meetings and negotiations.
 
June 2006

Nannette Ripmeester is a consultant to several multinational companies, which she advises regarding the strategy of international assignments and the practical implementation around expat issues.

Ripmeester started her international career at the European Commission, has worked on a project basis in 17 countries and is founder and Managing Director of Labour Mobility (www.labourmobility.com). She is author of the books 'Looking for work in Australia,' (ISBN 90-5896-0277) and 'Looking for work in New Zealand,' (ISBN 90-5896-0315).


Subject: Doing business across cultures, Doing business in Australia, Doing business in New Zealand

 

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