Being a Manager in Taiwan - Dummie's first need to know's

[Mother Theresa]

I liked this line from the Taiwan website:

Negotiations often continue after a contract has been signed

But it's true. I've seen it repeatedly. Seems wrong to me -- a deal's a deal -- but it does seem common. And why not? In particular if you've got a mutually beneficial business relationship, but you entered into a crappy deal and you only recognize it after the fact, after it is (or should be) too late, what the hell . . . if you don't perform they won't sue you, they're your business partner, just complain to them, tell them it's not possible to perform, demand modification, and eventually you'll get it (too bad for the adversary, who thought they had a deal).

[headhonchoII]

Off topic but I personally love dealing with Japanese customers. They know exactly what they want and they will go through everything in detail but they are very appreciative of patient service and quality. Nowadays it's a rare treat to spend time on a project and please the customer with lots of little details rather than trying to farm everything out as rapidly and cheaply as possible.

Me too. After having dealt with Taiwanese tech companies for about 7 years, I had my first meeting with a senior Japanese executive last year. I went about it as I usually would with a Taiwanese and talked specs, when he turned the whole issue around and explained that we first need to understand the actual consumer benefit and psychology. I seriously wanted to give the guy a big hug.

Well be prepared to wait two years for an order

[elburro]

Well be prepared to wait two years for an order

Hehe.. right on the spot. I was told that it may take one to two years to them to come to a decision.

[TainanCowboy]

I liked this line from the Taiwan website:

Negotiations often continue after a contract has been signed

But it's true. I've seen it repeatedly. Seems wrong to me -- a deal's a deal -- but it does seem common. And why not? In particular if you've got a mutually beneficial business relationship, but you entered into a crappy deal and you only recognize it after the fact, after it is (or should be) too late, what the hell . . . if you don't perform they won't sue you, they're your business partner, just complain to them, tell them it's not possible to perform, demand modification, and eventually you'll get it (too bad for the adversary, who thought they had a deal).

Yes. A two-edged sword indeed.
A contract in Taiwan is merely regarded as a 1st attempt at negotiation of terms, needs and wants.
Nothing more in the Taiwanese business mind ; It is viewed as holding no authority for penalty or specified rewards for performance of actions therein agreed to.

Once you begin to understand that this is how the person signing the deal thinks...it makes things a lot easier to grok when they start "re-negotiating" what, in your way of thinking, they already agreed to.

(yeah...I know...I just ended two (2) sentences with a preposition. So what?)

[elburro]

My experience with contracts in Taiwan and China is that most smaller companies want to avoid them at all costs as they're too troublesome. If they've just met you they'd rather take you to a KTV, have some drinks and talk bullshit, meet your family, etc. And build a personal relationship in order to build mutual trust.

In my last visit to China I got tangled up into a business deal with 5 parties. The Japanese customer, a Chinese manufacturer, a product designer, a industrial designer that I've found in Norway and myself. Now, the 3 first of these parties have done business with each other for more than 8 years, so they fully trust each other and because of this... believe that they need no contracts. They have everything transparent between them so they all know what the others are earning on projects they do together. I've known the product designer in that group for over 10 years, so when he stands up for me, I'm in the 'circle of trust' and also need no contracts when dealing with these people.

But when I brought in these Norwegian designers, whom I've never met before I brought them to China, everyone was cautious, as the weakest link was between myself and those designers. So we solved that by making a contract just between myself and those designers, while the rest of the business partnership is built on trust alone. We still went to KTV every bloody day in China though... to build trust.

[mfgillia]

In a business context, perhaps I've lived a charmed life but generally find the Taiwanese to be more westernized, direct and easier to deal with than other Asian countries. My reference point however is my first job in Asia spent working for a large Korean technology company living and working in Suwon, Hwasung and Seoul. Everything seems more straight forward and generally easier in comparison.

[CraigTPE]

I liked this line from the Taiwan website:

Negotiations often continue after a contract has been signed

One of my business clients said it's even worse in China. He said it's common that even after a price has been negotiated and the product or service delivered, the Chinese will often refuse to pay the agreed upon price and you just have to take what they give. (Anecdotal, for sure, but another reason why I have no interest in doing business in China.)

[headhonchoII]

Actually my old Taiwanese boss used that on most of his suppliers. It's a common tactic, build up some credit and then wham, get them to give a discount under duress. Suppliers need to insist on pre-payment or low credit lines and they won't have a problem.

[ceevee369]

Reading my post from then and comparing with "being a Manager in the Philippines" while pulling my hair out and using the F-word a zillionth time...

Believe me - after havinh worked an lived in S Korea, Vietnam, Manila now - Managing taiwanese is not so bad. Just let them not loose face and they will comply - work - agree..

Fuc'kn Philippines. Counting down th days going back with my wife to Taiwan to see the family.