Getting to grips with US culture
Why US business culture is important, but not for the reasons you might think
Wednesday, July 28 2010 || Comment || BY Phil Rogers
Some generalisations
Any high level discussion of business culture relies on generalisations that have many exceptions. As long as you accept this, it is worth discussing current US business culture at a high level and how it might relate to your sales and marketing efforts.
Dated stereotypes
US sales gurus and Hollywood have created a caricature of US business culture based on old sales ideas and Gordon Gekko’s 'Greed is Good' personas. While there is some element of truth in this picture, using manipulative sales tricks and focusing on sales above all else is not going to get a new market entrant far.
The emerging business culture
The recession fast tracked a move to leaner business models where the traditional field sales approach is being downsized in favor of inbound marketing where content rules. Helping the buyer through their buying process is the new model. Real world expertise that can save the buyer time, money and reputation is highly valued. A combination of tough economic times and corporate scandals over the last decade means that old style business entertainment is closely monitored if not banned by many firms.
US business puts a lot of focus on charitable giving and volunteerism. Most companies have active corporate citizenship programs with company non-profit foundations and initiatives to encourage employee volunteerism. Developing your own social program is valuable both from a business perspective and to elevate your own mission. Committing a percentage of sales or profits to a charity is a common way to approach it. Allowing your employees paid time for volunteer activities is another way of showing commitment to social responsibility. Sustainability is now a major issue when it comes to buying decisions. Buying organisations are unlikely to pay a premium for sustainable products and services but it can be a winning strategy if all other factors are equal. A focus on supporting minority and woman-owned business is another important aspect of both government and private sector US business culture. Many government agencies and corporations have specific purchasing goals so partnering with a certified minority or woman-owned business can be an effective strategy particularly if this strategy is linked to your organisation’s broader mission.
The increased use of collaboration is another big trend. Social media like blogs, LinkedIn and services like twitter make it far easier to find, be found, assess and collaborate with potential partners. One caveat, it is a lot easier to create a partnership than create value through a partnership relationship. Creating value through alliances requires specialist expertise, the allocation of resources and disciplined processes. Look for outside help if you do not have that expertise.
The overall cycle
The overall US culture provides some common themes with regard to the level and focus on business activity. A big surprise for many international firms is the slowdown from late May (Memorial Day) through to early September (Labor Day). It is tough to get much happening from a business development perspective particularly over July/August summer vacation period. Thanksgiving (end of November) through to New Year is also a slower period but business activity continues at a reasonable level for B2B decisions. Like anywhere, specific sectors have characteristic seasonality with a big portion of retail sales happening in the fourth quarter.
A big change in the last ten years is the widespread adoption of sophisticated purchasing process and systems in the US. These new purchasing strategies create a more structured buying process and generally slow the process down. Firms entering the US should be realistic both about the buying cycle and buying activity when making revenue forecasts and deciding when to take on additional costs.
The other big change is the deep penetration of internet channels both for consumers and businesses. Web-based businesses from online retailers through to software-as-a-service vendors are directly challenging major players like mega retailer Walmart and software giant Oracle. You will need to adapt your strategy if the path to success in your home market did not have a significant web component.
Regional cultures
Regional immigration patterns have and continue to impact the 'local' cultures. The fast growing Hispanic population continues to gain in importance in all markets – particularly the South. The West Coast and Northeast seem more adept at understanding accents. Energy and enthusiasm is good but talking too fast can lead to blank looks. Check in with your audience to make sure that you are being understood. Sometimes people are too polite to let you know. Also, the pace of business varies between regions. Don’t try and force the process. Let the prospective client take the lead.



















