Philippines: Let's Make a Deal!
From ExecutivePlanet.com
LET’S MAKE A DEAL!
The value of connections. Doing business in the Philippines is a highly personalized affair and often requires a personal introduction by a mutual friend or business associate in order to carry out initial negotiations. An intermediary can help you to establish solid business relationships and ensure that you reach the key decision-maker. To a Filipino, a successful business relationship is based on human interaction, personal contact and establishing trust.
Exchanging business cards. The exchange of business cards is an important part of establishing working relationships in the Philippines, but unlike many other cultures, the manner in which the cards are exchanged tends to be less formal. When presenting and receiving business cards however, you should do so with both hands. Translated business cards are not essential, but you should include your title and position in order to emphasize any influence and authority you may have.
Hire a local lawyer. If you are in the process of finalizing a transaction or closing a deal (i.e., buying real estate, buying a business, etc.) and about to go over voluminous legal documents, it’s best to obtain the services of an English speaking local lawyer, and pay good fees to get the best protection possible. A lawyer from your own country may end up being not so familiar with the local laws and issues.
Sitting and presenting oneself in meetings. Maintaining ‘face’ and upholding an individual’s reputation are vital components of Philippine culture. In the Philippines, expressing anger, negativity or experiencing public embarrassment results in a “loss of face” and as such has negative consequences. Filipinos will try to remain calm and in control of their emotions at all times and avoid direct confrontation. When doing business in the Philippines, you should avoid causing embarrassment or offence whenever possible and make an effort not to be too direct when communicating with your Filipino counterparts.
Generally, when conducting a business meeting in the Philippines, the seating arrangements will reflect the order of hierarchy within the company. By observing where each person sits, you will be able to determine who the key associates are in the organization.
A handshake upon entering the meeting room. A handshake with everyone in the room is a good way to start a meeting. The rules on handshakes are about the same as in the West, although Filipinos may use a little more contact (a pat on the side of the arm as gesture of hospitality or friendship). If there is a clear status differential, or you are meeting a senior executive, it may be best to let him/her offer the handshake first.
Language for brochures and promotional materials. Since English is the official business language, it would be best to prepare brochures and promotional materials that are printed in English. Translating the documents into Tagalog is not necessary.
Typical pace of business. Don’t be surprised if business negotiations take longer than anticipated. The pace of doing business in the Philippines is slow and the decision-making process tends to be detailed and protracted. Things usually unfold at a snail's pace that can be downright excruciating for the results-oriented Westerner.
The pace and content of meetings are different than Westerners are used to. There may be several minutes of small talk before getting down to business (about the CEO’s kid, the stock market, sports, the latest catastrophes, anything). People like to hang around afterwards for more of the same, even if the meeting itself has been tense. It would be impolite to hop up and immediately take your leave, even if you're running late for another meeting or you've just lost a difficult negotiation. Mend fences, leave with a smile and hearty farewell, and return to do battle another day.
Relationship Building. It helps to establish a personal relationship with a colleague or a client before getting down to business just to break the ice but it is not a "must". What is important is finding appropriate ways to communicate with people at all levels so that aims are explicitly and clearly articulated. However, a good way of establishing a personal relationship is spending time with colleagues or clients during break-time and meal-time. They are "less formal" and more at ease during these occasions. But minimize, if not remove "nightlife" activities during deployment. Foreigners treating colleagues and spending their money in nightclubs are sometimes a big “no-no”, as this is often associated with supporting the local sex trade.
