ARTICLE
4 September 2024

Representing Foreign Companies: Culture Matters

Way back in 2009, I wrote a blog post on the challenges and cultural differences I encountered while working with lawyers in Asia. At that time, my observations were primarily based on representing American...
United States Corporate/Commercial Law
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Navigating the Nuances When Working with Foreign Companies and Legal Professionals

Way back in 2009, I wrote a blog post on the challenges and cultural differences I encountered while working with lawyers in Asia. At that time, my observations were primarily based on representing American companies entering Asian markets. Since then, this one post has sparked at least two dozen discussions with foreign lawyers about the differences in lawyer cultures around the world. I have learned a tremendous amount from these conversations and from representing foreign companies looking to do business in the U.S. and Latin America.

I have lived in three different foreign countries for more than a year each—Spain, France, and Turkey—and I have been to Asia close to 200 times. So, I didn't exactly enter these conversations as a cultural neophyte. Yet, I have learned plenty. These experiences have taught me that while cultural fluency is a lifelong learning process, being open to understanding different perspectives is key to professional success.

Since COVID, my law firm has seen a significant increase in work assisting companies from Asia and Europe looking to enter the United States or Latin America, particularly Mexico. This expanded client base has brought me into closer contact with foreign lawyers, not just as an American attorney representing U.S. interests abroad but also as a collaborator with firms in Asia navigating Western legal landscapes. Hardly a day goes by without my speaking with a client or a lawyer in Europe or Latin America.

Recognizing the importance of cultural competence, our firm has also prioritized hiring lawyers and staff who speak a foreign language. We believe that people who are fluent in a second language tend to be more adept at understanding and navigating cultural differences. They often bring a level of empathy and adaptability that is invaluable when working with clients and colleagues from diverse backgrounds.

How American Lawyers Are Perceived by Foreign Counterparts

Through my numerous interactions with foreign lawyers, several common perceptions about American lawyers have emerged that I see as crucial for anyone working in an international legal context:

  • Overly Demanding: We're seen as excessively demanding, expecting immediate responses and frequent updates, which can feel intrusive in cultures where communication is more reserved. Setting clear expectations and adapting to different communication styles can bridge this gap.
  • Lacking Cultural Understanding: Some believe American lawyers fail to respect cultural nuances that influence legal and business practices. Understanding these nuances, like choosing the right negotiation approach, is crucial for success.
  • Too Aggressive: American lawyers are often perceived as overly aggressive. While assertiveness can achieve great results, it may be counterproductive in cultures valuing consensus and long-term relationships. Adjusting our approach to maintain face and build trust is essential.
  • Focused on Process Over Relationship: Many foreign lawyers see American counterparts as prioritizing legal processes over relationships. In cultures where maintaining harmony and face is vital, it's important to balance process with relationship-building.

Evolving Strategies for Better Collaboration

Given these insights, I have adjusted my approach when working with foreign companies and lawyers. I have also applied some of these learnings to my interactions with American clients and lawyers to foster a more culturally aware practice. Here are the strategies I've found most effective:

  1. Adapt Communication Styles: I have become more mindful of how often and in what manner I request updates. Recognizing that less frequent, more comprehensive updates are often preferred, I now try to align my expectations with the working style of my counterparts. For example, in many Asian cultures, it is common to receive a full report after significant milestones rather than constant, real-time updates. I also often remind junior lawyers at my firm that the matters we work on are ultimately for our clients, not for us. If possible, we should be working on their timeframe, not our own, to avoid appearing overly demanding or disrespectful.
  2. Emphasize Cultural Sensitivity: Before initiating any legal strategy, I take the time to discuss cultural considerations with my foreign counterparts that may impact the case. I seek their input on navigating these nuances, ensuring that our approach is both legally sound and culturally respectful. For instance, when working on a case involving a client from Asia, I often consult with local lawyers about how best to frame a legal argument or how to approach sensitive negotiations. This consultation process not only helps me avoid cultural missteps but also demonstrates respect for my colleagues' expertise and understanding of local customs.
  3. Balance Aggressiveness with Diplomacy: While advocating strongly for my clients remains crucial, I have learned to balance this with a more diplomatic approach that considers the local legal environment and customs. This includes being open to negotiation tactics that might not be standard in the U.S. but are more effective elsewhere. For example, in some cultures, indirect negotiation strategies—such as using intermediaries or allowing more time for relationship-building—can be more successful than direct confrontation. Recognizing these differences and adjusting my strategies accordingly has helped me build trust and achieve better outcomes in cross-cultural negotiations.
  4. Build Stronger Relationships: I have invested more time in building strong, trust-based relationships with my foreign legal partners. This involves more than just transactional interactions; it includes getting to know them personally, understanding their challenges, and showing a genuine interest in fostering long-term partnerships. For example, I make a point of spending time with my foreign counterparts outside of formal meetings—whether over dinner, at a cultural event, or even just a casual coffee chat. These informal interactions help build trust and rapport, which are essential for effective collaboration in many cultures.

Conclusion

Understanding and respecting cultural differences is vital in international law, and as my law firm continues to work with more companies from Asia and Europe entering the U.S. and Latin American markets, these lessons become even more relevant. Adapting our approaches to better align with the cultures we engage with is key to building successful, long-lasting relationships and achieving the best possible outcomes for our clients.

Representing Foreign Companies: Culture Matters

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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