Researching International Prospects: Cultural Considerations

1. Globalization in Institutional Advancement Conference – April 2002 Texas Tech University Researching International Prospects: Cultural Considerations Nancy Nichols Prospect Information Network 1-888-557-1326, ext. 110 www.prospectinfo.com

2. Next Steps • You’ve identified that the prospect is wealthy, you’ve identified interests, connections, etc. Now what? • The trick is to put theory into practice. What works in one culture may be inappropriate in another.

3. "It is often difficult for North Americans to bridge the gap between their values, beliefs and communication styles, and those of other cultures, making it necessary to research thoroughly and s “It is often difficult for North Americans to bridge the gap between their values, beliefs and communication styles, and those of other cultures, making it necessary to research thoroughly and seek local advice before embarking on any strategy” E.A. Thomas

4. FOREIGN COWS • FRENCH CORPORATION: You have two cows. You go onstrike because you want three cows. You go to lunch.Life is good. • JAPANESE CORPORATION: You have two cows. Youredesign them so they are one-tenth the size of anordinary cow and produce twenty times the milk. Theylearn to travel on unbelievably crowded trains. Mostare at the top of their class at cow school. • GERMAN CORPORATION: You have two cows. Youreengineer them so they are all blond, drink lots ofbeer, give excellent quality milk, and run a hundredmiles an hour. Unfortunately they also demand 13weeks of vacation per year. • ITALIAN CORPORATION: You have two cows but you don'tknow where they are. While ambling around, you see abeautiful woman. You break for lunch. Life is good.

5. FOREIGN COWS • RUSSIAN CORPORATION: You have two cows. You countthem and learn you have five cows. You have somemore vodka. You count them again and learn you have42 cows. You count them again and learn you have 12cows. You stop counting cows and open another bottleof vodka. You produce your 10th, 5-year plan in thelast 3 months. The Mafia shows up and takes overhowever many cows you really have. • AMERICAN CORPORATION: You have two cows. You sellone, lease it back to yourself and do an IPO on the2nd one. You force the 2 cows to produce the milk offour cows. You are surprised when one cow dropsdead. You spin an announcement to the analystsstating you have downsized and are reducingexpenses. Your stock goes up.

6. FOREIGN COWS • FLORIDA CORPORATION: You have a black cow and a brown cow. Everyone votes for the best looking one. Some of the people who like the brown one best vote for the black one. Some people vote for both. Some people vote for  neither. Some people can't figure out how to vote at all. Finally, a bunch of guys from out-of-state tell you which is the best lookingone.

7. What happens when you don’t do the research • Cracking an international market for fundraising is a goal of most growing non-profits. It shouldn’t be that hard, yet even the big multi-national businesses run into trouble because of language and culture differences. • Some examples

8. Some examples • The name Coca-Cola in China was first rendered as Ke-Kou-ke-la. Unfortunately, the Coke company didn’t discover until after thousands of signs had been printed that the phrase means “bite the wax tadpole”. • In Taiwan, the translation of the Pepsi slogan “Come alive with the Pepsi Generation” came out as “Pepsi will bring your ancestors back from the dead”. • When General Motors introduced the Chevy Nova in South America, it was apparently unaware that “no va” means “it won’t go”. It renamed the car for Spanish markets “Caribe”. • An American t-shirt maker in Miami printed shirts for the Spanish market which promoted the Popes’ visit. Instead of the desired “ I saw the Pope” in Spanish, the shirts proclaimed “I saw the Potato”.

9. How can you avoid the mistakes • If these giant corporations made these mistakes in approaching new markets, is there something you can learn from their mistakes so you don’t do the same thing?

10. AVOID WELL KNOWN MISTAKES • The biggest “no-no” is not to do proper preparation, or to start without a strategy. • Many time consuming and expensive mistakes are just due to lack of preparation, lack of information, and lack of planning. Don’t assume that the people you contact will be unprepared (DeBeers example) • You will need to learn a lot of basic facts (don’t assume). Example: accountant versus lawyer (Italy).

11. AVOID WELL KNOWN MISTAKES • Tax laws – is it deductible, is it an investment ? • What is the best way to make the donation? • What systems need to be put into place to make that happen? • What is the current culture of business in this country?

12. What is Your Strategy? • Is it global (e.g., 30% of our students/alumni are from Japan or Korea or many Korean firms investing in our area, etc.) or specific (e.g., targeting one individual or one company)? • Is it a long term strategy (carefully and deliberately building and sustaining strategic relationships, focused on cultivation and stewardship – not on immediate results) or short term strategy.

13. Some Observations • Focus on building life-long relationships that create a feeling of belonging. • Identify where you are active and where you are not active, on where your alumni are and what they are doing. Be flexible (e.g.,ensure that your institution is able to accept donations via credit cards which will greatly simplify exchange rate problems) • Build a stable program- with the same people being involved over the long term

14. Some Observations • Build a network of local “guides” and commit yourself to them- make them insiders, give them the information they need, empower them. • Be flexible and engage in active listening, flow with the local customs, don’t over organize your trips, rely on your guides. Allow room for flexibility and creative responses on the spot. “Learning” is more important than “cultivation”. • Do your homework on the companies, people and culture.

15. Long-term strategy:An Example • University of Toronto • 30% of students of Asian origin.Toronto a key destination point for Hong Kong immigrants.Many of the University’s Canadian corporate friends are building their Hong Kong profile • UT took a long term view towards fundraising . It moved carefully and deliberately to build and sustain strategic relationships, and focused on cultivation and stewardship-not immediate results. It began by building a solid alumni chapter and an active student recruitment program. It took the time to meet and cultivate community leaders, and helped introduce Hong Kong business leaders to Canadian corporate and government leaders. It built and sustained a close relationship with the Hong Kong Bank, helped establish Toronto ties for Hong Kong investors moving to Toronto.

16. Long-term strategy:An Example • What does this say? -Top-level commitment is important- For the first five years, Hong Kong had at least one annual visit by a university leader. Strong commitment by the president and others. Time (willingness to invest for the long term). -Investment of $1 million over 5 years returned $5 million plus after 5 years. In addition, it has built long-term relationships with a wide circle of financial and opinion leaders in Hong Kong. The Hong Kong alumni chapter has 2,000 active participants. (Resources)

17. Sources that can provide advice • Standard guides on various countries (Price Waterhouse guides “Doing Business in ….”, CIA World Factbook guidebooks) http://www.odci.gov/cia/publications/factbook/index U.S. government profiles of countries and territories around the world. Information on geography, people, government, transportation, economy, communications, military, and transnational issues.

18. Sources that Can Provide Advice • Tax law guides http://www.homeworkersexpats.com -International tax advice by country, tax changes Example: An introduction to the Italian tax system on accountants web site at Italian Taxation System: a primer for foreigners. • Charitable activities by country at http://philanthropy.com/free/resources/general/international

19. Sources that can provide advice • Internet sources : Google http://www.google.com --Click on Directory • Regional Business/Economics • Translation source (examples) • Language source

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21. Sources that can provide advice • Internet sources (cultural differences, customs) : • Executive Planet at www.executiveplanet.com -business etiquette and culture • World Biz at http://www.worldbiz.com -discover the best way to conduct business meetings and make business presentations; learn about business communications style and business entertainment. • Charity Village at http://www.charityvillage.com

22. Sources that can provide advice • “International Fundraising for Not-for-Profits: a Country by Country Profile” , Thomas Harris (editor). John Wiley & Sons; November 1999 – each chapter is written by a national of the country, insights about the country,culture, attitudes towards money and not-for profits aimed to allow the reader to penetrate effectively.

23. Some guides Kiss, Bow or Shake Hands: How to Do Business in Sixty CountriesA small misstep can threaten or even destroy your marketing efforts in a foreign country. Kiss, Bow, or Shake Hands will allow you to avoid many of the errors made by others abroad. This book provides you with the best and most current data on what foreign business and social practices to expect in your efforts at globalization. Dun & Bradstreet's Guide to Doing Business Around the World(revised 2000) Covering 40 countries, this up-to-date, "how-to" guide from the highly respected business information source is the first to combine timely export information and risk profiles with helpful data on the cultural aspects of doing business internationally. The International Traveler's Guide To Doing Business in the European Union (International Business Traveler's Series) This informative book includes notes on the economy, history, legal environment, customs and business styles of each country in the European Union. Invest in this book, and make your first impression in Latin America a god one.

24. Sources that can provide advice • Alumni (in this country doing business in the target countries—alumni residing in the country where you will be soliciting and cultivating donors.) • Local government agencies • Local businesses and business associations • International foundations • Key citizens in the community