Guanxi
is a network of relationships among various parties that cooperate together and
support one another. The Chinese mentality is very much that of "You
scratch my back, I’ll scratch yours." In essence, this boils down to
exchanging favors, which are expected to be done regularly and voluntarily.
Therefore, it is an important concept to understand if one is to function
effectively in Chinese society. Regardless of business experiences in ones home
country, in China
it is the right "Guanxi" that makes all the difference in ensuring
that business will be successful. By getting the right "Guanxi", the
organization minimizes the risks, frustrations, and disappointments when doing
business in China.
And moreover, the inevitable risks, barriers, and set-ups you’ll encounter in China will be
minimized when you have the right “Guanxi” network working for you.
Although
developing and nurturing the "Guanxi" in China is very demanding on time and
resources, the time and money necessary to establish a strong network is well
worth the investment. It is very common for individuals of an organization to
visit the residence of their acquaintances from other organizations, bringing
gifts (such as wine, cigarettes, etc.). They can indirectly link you to new
acquaintances and information resources, thus helping you to develop other
right "Guanxi" you need.
Keep
in mind that "Guanxi" can take on many forms. It can take form of
giving money to people who have helped you in getting a business order. While
we would deem it as a bribe or kickback, it is completely legal in their
culture. So, there is no need to feel uncomfortable about it. Trustworthiness
of both the company and individual is an important component. Following through
on promises is a good indication of this. Treating someone with courtesy while
others treat him or her unfairly is another aspect. Frequent contact fosters
friendship as well. Chinese feel obligated to do business with their friends
first.
Though
the word Guanxi sounds foreign, I presume that the concept is not foreign at
all. As it is true to China,
this basically is true to any country as a whole. This is about people and how
people expect to be treated. Of all the
human needs that exist today, it is this need for appreciation and recognition
that is in great demand. In a fast evolving world, where networking is the
mantra, let us learn and practice the art of Guanxi.
· Wear
a big SMILE on your face
· Give
gifts, when possible.
· Remember
people’s name and call them by their name often.
· Shower
words of praise and show genuine appreciation
· Keep
up promises you make
· Be
willing and volunteer to help others in time of need.
· Develop
a sense of fair play, in all your dealings.
By consciously practicing these skills, you will
soon realize that the network of your friends and business contacts are not
just growing, but zooming beyond proportions. The power of networking, will
make you feel stronger and stronger, day by day.
Happy Reading,
D. Senthil Kannan
Article dated Jan'08
Article dated Jan'08