How do you manage partnership risks across cultures and geographies?

It is important to do a detailed due diligence on your would-be partner. In some countries, there is no sanctity of contracts hence you may not be able to enforce executed agreements. In such scenarios, the Partner's value system becomes critical. Is the person honorable? How has this partner treated other business associates in the past? How do they handle conflicts? Understanding your Partner's culture and values can not be over-emphasized

Managing partnership risks across cultures and geographies can be challenging, but there are several steps you can take to mitigate these risks: 1) Ensure thorough due diligence: Prior to forming a partnership, it is crucial to conduct a meticulous due diligence process in order to fully comprehend the potential risks involved. Seek guidance from local advisors: Seek the assistance of local advisors or consultants who possess expertise in the partner's culture, legal framework, and business practices. Foster cultural sensitivity within your organization by providing training to employees who will be directly collaborating with partners from different cultures and geographical locations

Conduct thorough cultural due diligence before entering into any partnership. Understand cultural nuances, communication styles, business practices, and potential challenges that may arise.

Managing partnership risks across cultures needs a clear plan. Communicate openly, train for cultural differences, and identify potential problems. Create a flexible risk plan, involve local experts, and diversify suppliers. Use tech for quick communication and data analysis. Regularly update plans and adapt to changes. Success comes from good communication, cultural awareness, and flexible planning.

The people involved should always be analysed before starting a project. What sounds simple is often underestimated: the special characteristics of people! In today's world, these not only consist of national/cultural differences, but are also becoming increasingly apparent within a country: sexual orientation, lifestyle, political/social orientation, etc. Those who are aware of these differences are able to influence team members more sensitively and therefore more successfully. This is not about "exaggerating the sensitivities" of "snowflakes", but rather about achieving great results with as little friction as possible. Because one thing is certain: those who feel comfortable deliver better results.

Invest time in building strong relationships with your partners. This involves understanding their values, priorities, and business objectives. Regular communication and face-to-face meetings can help foster trust.

Be flexible and adaptable in your approach. Recognize that business practices may differ across cultures, and a one-size-fits-all strategy may not be effective. Address technology and cybersecurity concerns, especially if your partnership involves sharing sensitive information. Implement robust cybersecurity measures to protect data across different geographies.

Clearly define roles, responsibilities, and decision-making processes within the partnership. Establish protocols for conflict resolution, communication, and reporting. Implement a system for regular performance reviews and evaluations. Monitor key performance indicators (KPIs) to ensure that the partnership is delivering the expected results. Develop a crisis management plan that outlines steps to take in case of unexpected events, such as political instability or economic downturns. Be prepared to adapt quickly to changing circumstances.

Managing partnership risks across cultures and geographies requires a proactive and holistic approach. By integrating these considerations into your partnership management strategy, you can enhance the likelihood of success and minimize potential challenges.

Erin Meyer's Culture Map outlines eight scales that help understand cultural differences in business communication. These scales include: Communicating, Evaluating, Leading, Deciding, Trusting, Disagreeing, Scheduling and Persuading Understanding these dimensions aids in navigating cross-cultural interactions and fostering effective communication in a global business context.