Home
 
Hotel Reservation
   
 

Understanding Thai Values and Culture — Part 2

This is the second part of a two part article by Khun Sunee Sathaporn. (Part I was published in the February edition of Advance.)
.

  .
6. BUSINESS CULTURE

All cultural aspects mentioned in the previous part of this article influence what is considered proper business conduct in Thailand.

Show respect
You must always show your Thai colleagues respect. It is inadvisable to show any intimate behaviour until you know them very well. An example of misunderstanding is when I took an Australian businessman to meet a potential joint venture partner in Thailand. After a lengthy reception and presentation I requested a group photo. To my shock the Australian businessman stood between the Thai businessman and his wife and put his arms around their shoulders. This was before all our business had been concluded and the Australian's manner, among other things, contributed to a negative outcome.

Keep cool
Next, keep cool and don't rush. Don't wear your emotions on your sleeve. Outward expression of extreme negative or positive emotions is not cool in Thailand. Plan your trip to Thailand well in advance. When making appointments, you may need a consultant, especially one who is well connected and speaks Thai, or who has local staff who can speak Thai. Organising meetings often takes a long time, especially when you wish to meet with high level people. Don't turn up in Thailand expecting to make appointments on the run.

English language and the Thai "Yes"
Don't over estimate people's English language ability. Although international schools and bilingual education is becoming more popular in Thailand, only a handful of rich Thais can afford this education, and not all Thais have an overseas education. Most white-collar workers will have completed a bachelor's degree at University. They may have studied English for a few sessions each week with a Thai teacher. Some experienced expats in Thailand have said that speaking broken Thai is a more effective way of communicating with staff than using English.

For this reason, when you prepare a presentation for a Thai audience, it would be more effective to have a bilingual presentation. You may misinterpret that an English language presentation has gone well with a Thai audience because the audience may answer yes when asked if they understood. This leads us to another communication code in Thailand. "Yes" does not always mean yes. As I mentioned, "face" is important in Thailand and needs to be preserved at all costs. For Thais to admit that they do not understand is a loss of face. Also, Thais will avoid asking for clarification as it may imply that you have failed in your presentation. Thai people will want to spare you the embarrassment, and will respond with a nod, a smile and a yes.

Body language and the different meanings
The real message is not always communicated by words. You need to read the body language, which could give a different message. An example of different perceptions can be explained by this small story.

Once I took potential Australian investors to visit the Minister of Industry in Thailand. The Minister sat at the head of a long table and the Australians sat on one side with high level Thai government officials on the opposite side. The Thai Minister was very friendly and attentive to each investor's introduction; he asked questions, and filled the conversation with humour and laughter. When he concluded the meeting he said that he would be very please to assist the investors to make lots of profit in Thailand and his Ministry was there to serve them.

After the meeting, I asked the Australian investors about their impressions. One said he was not sure that the meeting went well because all the government officials sitting opposite us seemed to have no participation, neither speaking nor showing an engaged look. I explained that the meeting actually went very well because the Minister gave his time and was attentive to each introduction; he asked questions and gave us his assurances. The Thai behaviour to be aware of is that in the presence of a senior person, the less senior members leave the role of communication to their leader. Also, in the presence of a Minister, other officials will not interrupt the conversation, and will restrain from overt expression. This is considered polite and respectful in a Thai context.

Relationships are the key to winning business deals
If you want to win any deal in Thailand, you have to win the relationship first. Don't expect to close the deal after the first meeting. Take it as a getting to know each other session and try to cultivate the relationship by keeping in contact. Thai companies may not have the need for your product or service straight away, but there may be a time in the future where their situation changes, and that is where a cultivated long-term relationship is important.

Key Performance Indexes and the short term view
Many Western businesses set their KPI or Key Performance Indexes to evaluate their employees based on a short interval of six months or one year, resulting in employees needing to sell or to achieve a target in a short period. Such business practice is happening in Thailand with the penetration of numerous multinational corporations. Undeniable such a system has a virtue, but what do Thais think about this?

A senior Thai executive in one of the biggest Thai corporations told me that he was often pursued to move to a multinational corporation where he would earn a very high salary. He said he refused the job offer because "farangs" (westerners) have a short-term view and never have a long-term strategy. Their normal interval is yearly; a long-term plan is two to three years at the maximum. His Thai corporation planned everything ahead for at least ten years. As an executive he was given the chance to use his initiative and to try out ideas. Once the chairman allocated a huge budget for him to pursue his initiatives. The operation failed, and they lost all the money but he was not fired. It taught him to learn from his mistakes. Would a farang boss have such a view?

Socializing and entertaining
Now, let's talk about socializing and entertaining.

 

In Western business culture, “fairness” may be based on payment for service.  Giving without getting something in return is considered unfair.  Such a universal concept applies to Thai business culture as well.  But the difference is the time line.  Before a “fair” deal is done in Thailand, Thais need to feel comfortable with you first.

Both are very important in Thailand, but with a different flavour compared to the Western way. Thai business people spend more time and effort to entertain and socialize with their clients or colleagues. If you are invited by a Thai partner, the chances are they will take good care of you, not just at meetings and work, but also for sight-seeing, dinner, shopping, etc. They will also take into consideration whether you have your spouse with you, and try to accommodate him/her into their plans. Personal and business talk is mixed during lunch or dinner.

Australians do it differently. Once I did some training for Thai guests of an Australian company. The Thais told me that they didn't know where to go during the weekend. They were invited strictly for work and no one was available to show them around, even to tell them where to eat. Needless to say, this was a big culture shock. They did not expect that they would be abandoned, because they were ' guests'.

How about socializing? Thais love socializing, but they mainly do that with people or groups they are familiar with or belong to. Thais go to endless parties, functions, receptions, weddings, funerals, etc. A well-connected Thai businessman would rarely have an evening free for his own family. However, Thais may be reserved with strangers, and to have a conversation with a complete stranger, especially a foreigner, is something that Thais may feel uncomfortable with.

At networking functions in Australia, I find that complete strangers can make conversation easily at either a personal or a business level. Of course not everyone is outgoing, but it is fair to say that it is quite easy to mingle if you try.
Thai people are quite reserved in talking with strangers. They would feel more comfortable when there are proper introductions. If you are organizing a networking function and invite Thai guests, make sure that you introduce the Thais.

Once I organized a reception hosted by the Victorian Government to welcome a large Thai delegation. At the end of the official speeches, the Thais lined up for me to help introduce them to the Victorian Minister. The Minister was very friendly and the Thais felt it was a great honour to shake hands and to introduce themselves. Afterwards they spoke well about the Minister's friendliness and attitude. Such comments came from a culture where Thais are conscious of their status. If they feel that their status is not high enough, they will be reluctant to introduce themselves to people of a higher status. Thus the introductions avoided the potential embarrassment of the Thais.


.

   
7. FAIRNESS VS GRATITUDE AND TRUST

Fairness as a Western priority
In Western business culture, "fairness" may be based on payment for service. Giving without getting something in return is considered unfair. Such a universal concept applies to Thai business culture as well. But the difference is the timeline. You need to be more patient before you get results, and you should give first. Before a "fair" deal is done in Thailand, Thais need to feel comfortable with you first.

Gratitude and trust as an Eastern priority
Gratitude and trust are two key words. Thai people are taught to be grateful to people who give to them — be grateful to your parents who gave you life; be grateful to your teacher who gives you knowledge; be grateful to your boss who gives you income. Thais feel that they owe it to the person who gives to them. This gratitude is called "Boon Khun". The Buddhist law of karma is in operation — if you do a good deed, it will always lead to a good outcome. It may take time, but it will come, so be patient.

Now let's talk about trust. Trust needs to be built over time and sometimes difficulties test your trustworthiness. A Thai Chinese businessman who is in the business of exporting agricultural products once told me his biggest test was when he was almost bankrupt. A Japanese importer agreed to buy his product in advance at an agreed price. When the time came for delivery, the cost of raw materials had increased and to sell at the agreed price would mean a loss and an increase in his debt. He decided he needed to honour the deal and that sent his business broke. The next year, the Japanese importer came back to him, ignoring every one else in the market offering a more competitive price and gave him exclusive rights. Trust was the foundation stone of his success.

A good boss - authority and benevolence
If you are to become a boss in Thailand, please note that a good boss in Thailand is a boss who has both authority or "pra det", and a benevolent quality or "pra khun". As someone who pays their wages, an employer already possess "pra det", but whether or not the employee will stay with the company depends also on "pra khun". An employer will gain "pra khun" by showing that they care for their employees. We call this "water from the heart" or "nam jai".

Nam jai — water from the heart
Nam jai is a concept of mutual give and take, which will help you maintain long term relationships in Thailand. Be it your business colleagues, employees, friends or family you can show nam jai in various ways. Giving gifts on appropriate occasions — when you first meet; on New Year's Day; when invited to or reciprocating invitations to share a meal with your business colleagues. Invite your team to share a meal and pay for them occasionally; share the company's profit with employees in good years; attend weddings, funerals, merit making trips to temples with your colleagues and employees.

In the community you can show "nam jai" by giving something back. There are many underprivileged people in Thailand and your colleagues and employees can guide you to a good cause that could also raise your company profile and reputation.

 

This may hide their disagreement or anger for the sake of outward harmony, and so you need to always read the body language and don’t assume that you know anything or everything in Thailand.

Are you spoift?
To my observation, a lot of Westerners are spoilt in Thailand, and that is partly the fault of the Thais. Farang executives in Thailand are treated like gods and they command respect and obedience beyond their wildest dreams. Many expats with heavenly experiences in Thailand find it difficult to adjust upon their return to their egalitarian homeland, where they revert to being ordinary.

Historically, the Thais look up to Westerners. Upper class Thais have traditionally sent their children to be educated in England and other Western countries for over 100 years. The Western way of life is perceived as a civilized way of life. The Western concept of consumerism fits in well with revering the 'tall poppies' of Thailand. Many Thais consider that farangs are superior, especially farangs with wealth.

Various Thai proverbs — don't poo like an elephant; don't bruise the lotus; walking behind the big man — are created from a culture of humility with great respect for authority and the need to be a caring group member. Things are in harmony when there is reciprocity. People with a higher status, given respect and recognition, also need to provide for and assist people who depend on them, and to be fair in return. Thais may hide their disagreement or anger for the sake of outward harmony, and so you need to always read the body language and don't assume that you know anything or everything in Thailand.

Many foreigners find it very rewarding when working with Thai people. The secret of it all is to treat them with sincerity and respect. Learn how to give first, and be patient. Be reciprocal, show 'nam jai' or water from the heart, and you will win a Thai heart and their business. Remember, the law of karma operates in Thailand, and your good deeds will always return you a reward.


   
  (Khun Sunee Sathaporn is Managing Director of Summit Thailand. She can be contacted at: ssathaporn@optusnet.com.au )

  .