Building a quality product sourcing team in China

Cross Cultural coaching in China

I am lucky enough to meet many fantastic people in my capacity as a communication coach based in Shanghai. Shanghai is a magnet for entrepreneurs from around the world, and I have had some great conversations in my Toastmasters meetings.

Recently, one entrepreneur from Turkey approached me for help with his small but growing textile sourcing business. He is a wonderfully genuine guy with deep insights in his field. He has strong contacts in Europe who he charges a consulting fee to buy his products sourced from factories in China. On one level he is providing a bridge for his customers who cannot speak directly with factories and more importantly are not on the ground to inspect samples and production facilities.

A China success story.

However, he is stuck in his business. Like many entrepreneurs around the world, he was trapped by operational details and had to inspect every single sample before it is sent to customers. Build systems, train your staff and develop a clear organization structure would be simple answers. However, some specific cultural issues need to be considered in China.

In China, loyalty lies in the relationship

China's society has a very clear hierarchy which means that in any given context people like to know what their relationship is to someone else. For example, father-son, older brother-younger brother, teacher-student, boss-employee. Although these seem like family ties, in China these relationships cross over into the business world. A good boss is expected to be strict and give very clear directives and instructions on what staff should do. This imitates the education that most Chinese people have received and they expect a strong leader.

My Turkish friend faced a challenge when he tried to delegate work to his staff. He might be perceived as a weak boss and staff could shift their loyalty to the person who was seen as taking over the work. Many foreign companies have seen entire departments walk out when a manager leaves the company. In China, loyalty lies in the relationship, not to the company.

Involve everyone in the discussion

His response was pragmatic. He held an open discussion with his team, where they discussed the new structure. He openly supported his number two, but made it clear from the organizational structure chart that he was the boss. He also smartly divided responsibilities so that his number two would not have too much control. By bringing the whole company into the discussion - even the company driver was involved! - he ensured that everybody was on the same page. He boosted his number two "giving her face" and support. Plus he put a check and balance in place to ensure he is seen as the boss.

He now has more time to develop his business and enjoy trips back home to see his family in Turkey.

Warwick John Fahy is a professional speech coach and expert in presentation skills, public speaking and communication skills. You can email him at for more information. He offers an initial complimentary telephone coaching sessions.

Call him at +86 21 6101 0486 or visit him on the Web at www.warwickjohnfahy.com for more information about his services. For entrepreneurs looking to source, trade, invest or learn more about doing business in China, contact Warwick to tap into a network of successful professionals. Investor visits and matchmaking can be arranged.

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