Eastern Europe - The Similarities and Differences

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There are as many cultures in Eastern Europe as there are countries. The region has

always been a hub between Asia and Western Europe and although individual countries may seem homogenous in terms of religion or ethnic roots, each country has a distinct culture, language and religion.

Despite the cultural diversity, there are similarities between business environments throughout the Eastern Europe, mainly due to the soviet-style business model adopted by all countries of the region during the 50 years after the WWII.

The first general observation that springs to mind is that in Eastern Europe skills are confused with knowledge. Many Eastern Europeans are well read and boast wide general knowledge, but lack basic practical skills such as report writing or managing boss's diaries.

Age and education are big dividers of Eastern European societies. It is almost inconceivable to find a manager without a university degree. In general people do not address each other by first name when they first meet. Switching to first names takes time and is a significant step in bonding the relationship. Elders must always be addressed by "Mr" or "Madame". Disregard for these seemingly trivial issues may offend local partners.

Although the privatisation process throughout the region has almost been completed, individual governments still hold stakes in large number of companies. Many of these companies continue to be riddled with legacies of the past. Red-tape, convoluted organisational structure, de-motivating remuneration system, and widely spread corruption are just a few of many problems. The management is often appointed according to a political badge they wear and is sacked soon after the next elections.

Private companies in the region have made a great progress in all aspects of business, but although they are a lot easier to deal with and more efficient, some time will pass before they will fully adapt to best standards.

Legal systems in Eastern Europe, like in the rest of the continent, are based on the Roman code, this is sometimes not fully appreciated by British businessmen.

In most Eastern European countries verbal agreements have no significance. Written word is the king. Any, even half-important document, must be rubber-stamped and signed. Detailed agendas and written requests for information prior to a meeting will minimise time wasting. Documenting meetings and asking partners for a feedback in writing is a good idea.

Suit and tie are the norm and so are gadgets such as (opulent) watches, business card holders and mobile phones, which are never switched-off. Business cards in local language will help and should bear all possible professional and academic titles such as Frina, BSc, MBA, etc.

Corporate hospitality plays an important part of business practice for Eastern Europeans, who tend to be generous and expect the same in return. Business dinners are very important and useful occasions to create better understanding between partners and also for bonding ties between them. There is no shortage of good local restaurants in Eastern Europe but, it seems, most preferred venues tend to be international hotels such as Sheraton or Marriott. Corporate gifts are welcome, but it is advisable not to offer low quality trivial gifts. If not sure about what to offer to a partner, give a bottle of a good malt whiskey, necessarily with a story, preferably touching upon some bizarre moments in Scottish history.

The further East, the more the management style becomes autocratic and centralised. In Russian speaking countries all final decisions can only be made by the top man, who must be assured of his position and shown respect at all times. Attempts to streamline communication process by getting directly to the person with most relevant expertise, may be taken as a sign of disrespect and could result in unnecessary break in communication. Power within most organisations is based on position not knowledge or skills. Teams organized like matrix structures are not common. Everywhere in Eastern Europe personal contacts and networking determines success in business.

Meetings are usually attended by large teams. Bosses like to refer specialist questions to one of their experts, but also to underline their importance. Eye contact with the top man while talking via an interpreter is very important. Showing emotions is allowed and often welcome as they help the Eastern European partners to detect the mood of the conversation ( this is not always easy especially with visitors from Britain). Small talk is important and should be used generously. If skilfully used, small talk can help to relax the atmosphere and to show more of a "human face". Secrecy is lax and vigilance while sharing important information advisable at all times.

Position of women in business varies from fully liberated in Poland to a somewhat less fortunate position in Russia. Throughout Eastern Europe however, women-professionals prove to be loyal, practical, focused and hungry for recognition of their abilities. In many situations a female employee would deliver a lot better result than her male colleague.

Professional interpreters, however expensive they might be, are often good for handling general conversation but not technical issues.

The important success factor for a first business trip to Eastern Europe is a good local expert, who not only speaks the local language, but who can also assess quality, connection and credibility of the local partner. Mapping out the local political scene and checking political connections of leading business leaders is essential. Time taken to gather good intelligence about partners and local business scene will pay great dividends

Farnham Castle/Pawel Markiewicz 2002

Pawel Markiewicz Of dual British/Polish citizenship, he is fluent in Polish, English and Russian. From January 1995 to 1997, he lived and worked in Russia for the European Commission (TACIS) running a project designed to develop business support infrastructure and gaining an intimate knowledge of the Russian and Polish corporate and social cultures, business environment and administrative structures. Now based in the UK, he continues to provide a consultancy service in these areas and is a regular speaker at Farnham Castle.