CULTURAL DIFFERENCES (2)

Some of the cultural differences can be found through simple language terms that we (USA) assume mean the same thing in Mexico. The confusion arises out of the Mexican's intense desire to please you and avoid conflict. Terms as simple as "yes" and "no" can mean very different things to each of us. For example, below is a chart of some of these commonly misunderstood terms: The challenge for us (USA) is:
1. Don’t be offended when our Mexican friends avoid saying no, they are simply being polite
2. Get below the surface of the "yes" or "no" and discover what their reply really means. This can usually be accomplished by probing questions or inviting them to disagree with you.

For example, rather than asking, "Will the XYZ project be complete by Friday?" to which you would normally receive a "yes" response. I recommend that you invite disagreement by saying instead, "I need the XYZ project complete by this Friday. Please tell me if this is realistic." By phrasing it in this manner, you have invited them to tell you why or why it is not possible. Thus you have allowed them to remain polite, and you avoid the unpleasant surprise of a project that does not meet your expectations.

Richard Roche

CULTURAL DIFFERENCES (1)

This chart shows the regulatory audits I have experienced while managing companies in the USA and in Mexico over a ten year period. The USA and Mexican audits were in manufacturing companies of similar size. In addition, both firms were managed in compliance with no significant violations or penalties incurred.

The obvious challenge is to carefully manage the regulatory and compliance elements of your business in Mexico.

My next posting will address other cultural differences.

Richard Roche

WHAT DO I NEED TO KNOW TO GET STARTED?

That’s a great question!

After 20+ years in manufacturing, when I started my first manufacturing plant in Mexico in 1999, I felt it would be like starting any plant in the USA. Basically all I needed to do was decide on a location, find or build an appropriate facility and hire a good local manager. Sounds simple right?

What I have been learning over the last 10 years is that it was not quite so “simple.” Besides the obvious language hurdle, there are also many cultural and regulatory dissimilarities, with the foundational differences coming out of a unique cultural world-view. A good understanding of the Mexican culture is essential.

For example, in the USA, our regulatory agencies assume compliance. (While I appreciate this assumption has begun to change, it still remains fundamental to many of our regulatory agencies.) In Mexico, however, regulatory agencies assume non-compliance from the start. This fits with a basic Latin world-view which assumes that people will cheat, and the Mexican regulatory systems are constructed in such a way as to catch them doing so. This mindset and reglatory structure results in significant liabilities in Mexico which few USA managers, and surprisingly few Mexican mangers, fully understand.

Over the next several postings, I will begin to share some of the cultural differences which result in significant regulatory risks and some of the ways in which we have learned to minimize our exposure. Richard Roche, President of ROCHE Industries