|                                                                                                                                                             |  | FINDING "SUCCESS" IN RUSSIA                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           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|**BISNISHome PageSearchBISNISEmbassyReportsCountryReportsIndustryReportsPublicationsSourcesof FinanceLeadsand EventsExchangeRatesState ExportsOtherSources** |  | May 1998by Steven D. JonesAt your first meeting with your Russian partner, you delivered a powerful, concise pitch about the
deal you'd like to close.  Your partner responded with a forty-five minute presentation on the
background of his organization, the political situation in Moscow, and the history of the building
where your meeting was held.  The situation was awkward for everyone. Nothing concrete came
of your visit, and now, on your second trip to Moscow, your partner spends twenty minutes
talking about your first encounter and still not a word about your proposal.  Your gentle efforts
to get things back on track seem to fall on deaf ears.  What's going wrong?  Absolutely nothing.
In fact, both sides are genuinely pursuing success as they understand it it's just that Russians
and Americans happen to understand success quite differently.To be sure, no two Russians, let alone Russians and Americans, are likely to understand success
in exactly the same way. Still, we can outline a basic framework that is likely to be shared by
many, if not most, members of each group.  History and  current circumstances strongly shape
these differences,  which are most sharply revealed when we encounter one another.Differing Approaches to Business
The American approach to business get in, get it done, and get out of the way is possible
because of the external legal mechanisms and business practices that assure each partner that the
other will probably hold up their end of the bargain. Whether the partners trust each other
personally is much less important than the strength of their contract.  If necessary, we can always
turn to the legal system, however undesirable that may be.  This allows business to be conducted
fairly easily, even by nearly complete strangers.For historical reasons, Russia has never had the institutional stability or predictability that is taken
for granted in the United States.   In such a context, doing business with strangers is very unwise. 
As a result, all dealings, business and otherwise, have always been handled through trusted, long-term, personal relationships.  "Within the Russian system," says John M. Dabbar, Oil Movements
Manager of the Caspian Pipeline Consortium, "your agreement is only as enforceable as your
personal ability to do so."  In other words, fulfillment of your contract hinges almost entirely on
your partner's resolve to see things through, which brings us back to notions of success, the key
to motivation on both sides.Differing Approaches to Success
Americans tend to understand success in terms of short-term, discrete, concrete goals: a
successful deal, project, or return on investment.  Russians typically see success as an
advantageous long-term relationship that is, a process, not an event.  Productive deals or
projects are natural components, or even by-products of the relationship.  Because individual
relationships carry the "burden" of trust and performance that Americans relegate to institutions,
Russian business is a much slower, more "high maintenance" undertaking.Without recourse to legal or social institutions, Russians must be sure they select the right
partner.   Once the choice has been made, they focus on keeping the relationship in good shape. 
In other words, business is perceived more as a marriage than a linear series of isolated, profit-driven transactions.While Americans are often puzzled and frustrated by what appears to be a Russian inability to
"get down to business," Russians frequently misunderstand the Americans, as well.  What the
Russians see often looks to them disturbingly pushy, greedy, and short sighted.  When
negotiating, if the Russians are thinking about the opportunities in a long-term relationship, they
may offer a smaller deal to "prime" the relationship.  One or more larger, more attractive projects
may be reserved for a bit further down the road. This broader playing field may be invisible to
Americans, who often focus on the specifics of the particular deal on the table right now.  Even if
the Americans do see something better, they may be impatient to skip ahead to it right away
instead of "wasting time" on the "little stuff."The Russians will look to see if "you follow through with simple, incremental contributions to
progress," says Dabbar.  "Perform now and you will get the chance to perform later...and watch
to see if your partners reciprocate.  If they do, you are building a relationship." And today, in
Russia's fluid institutional environment, it makes much more sense to concentrate on establishing
and maintaining solid relationships now rather than trying to thrash results out of the system
later.The question any American doing business in Russia should ask is: do I really understand how my
partner views success?  The answer may well be the forecast for the overall outcome of the
venture.  Concretely, success in a cross-cultural setting means establishing a relationship and way
of doing business that accommodates the elements of success that are most important to each
partner. For Americans, this means a willingness to assume the duties of a credible partner from
the Russian point of view.  In practice, consider ways of doing business that have worked for your
company in Asia: take time with introductions and getting to know one another; learn about the
other side's values and perceptions, and how they convey respect and good intentions; and finally,
actively seek an understanding of what constitutes an attractive partnership and a successful
venture by focusing on long-term outcomes and possibilities, rather than a one-time, results-oriented approach. Don't be in a rush to get it done; be in a rush to get it right.Steven D. Jones is President of East-West Business Strategies of  San Francisco.This report is provided courtesy of the Business Information Service for the Newly
Independent States (BISNIS)