How I Manage My Staff From the Other Side of the World
By Brent Gensler, CEO, DefySupply, Minneapolis
My company, DefySupply, helps customers purchase furniture directly from manufacturers in China for much lower rates than they'd find at traditional retail outlets. We launched two-and-a-half years ago, and are already clearing $2.5 million in revenue. I run the company with the help of five employees in the U.S., but we would be nothing without my core team of 10 buyers who are based in Guangdong, China. Without them, I wouldn't have any way to handle our furniture shipments or maintain relationships with our manufacturers.
In other words, business depends heavily on a team that's separated from me by a language barrier, 13 time zones, and a slew of cultural differences. Here's what I've picked up, mostly through trial and error, about managing employees on the other side of the world.
Communication issues
My biggest challenge as an American managing a Chinese staff has been clear communication. I only speak what I would call "get-around-town Cantonese," meaning I can get a cab and order food. But I need to talk to my Guangdong team about sourcing furniture from factories, inspecting products prior to shipping and arranging shipment to our customers. These discussions can be technical, and I get lost easily.
Fortunately, I have a great manager in China who can think on his feet and clearly explain issues to me. I first met him when he was working for a Chinese furniture manufacturer. I was impressed with his combination of English language skills, experience and work ethic, so I hired him to run our Guandong office.
He directs my staff on a day-to-day basis, and checks in with me regularly to go over problems like missing orders or defective furniture. We communicate primarily through email, because his written English is much better than his spoken English. Still, I have to craft my emails carefully to avoid miscommunication. I once sent him a note asking him to reorder screws for a chair, but the message wasn't clear enough and he reordered the chair itself.
These sorts of miscommunications prompted me to start using an e-mail template that outlines the steps I need my staff to take, using short, direct sentences. So, for instance, if a similar situation arises in the future, I would write, "Issue: Incorrect screws sent. Action: Replace the screws for this chair."
Cultural differences
I travel to our office in Guangdong three or four times a year, usually for one to two weeks at a stretch. Spending time with my team has helped me gain a richer understanding of the Chinese culture, which has been an asset to my business.
For instance, I've learned that it's important for the Chinese to save face with their colleagues and friends. So I make sure to praise my employees in front of their peers, but only criticize them in private.
Personal relationships are also more vital to my Chinese associates than my American partners. So we bring small gifts -- perhaps a set of Minnesota Vikings shirts -- to show that we care. And when we first begin working with a factory, we'll spend a night out at dinner with our new partners, talking about our families and interests. That's a big change from the U.S., where our conversations with our vendors are based purely on our business needs.
13 hours apart
When I'm back in Minnesota, I keep odd working hours so that I can communicate easily if my Chinese employees need a quick response. They're on the job for the day at 7 p.m. my time, so I'll stay online until about 1 a.m. in case a problem needs to be resolved. This can save an entire day in Guangdong. Then I'll get up at 6 a.m. -- 7 p.m. their time -- to check my Blackberry so that I can respond to emails before they leave for the night. I don't get much sleep, which was really tough on me when I first launched the company, but now I barely notice it. I guess my body has adjusted over time.
Even though I correspond with my staff several times over the course of a night, I still can't monitor their actions directly. So I make sure to hire people who are proactive thinkers. They don't need to be told, "Today, accomplish these 10 tasks." They assess what needs to be done, and then they take care of it.
The importance of personal contact
Perhaps the most important aspect of managing workers overseas is maintaining good personal relationships with my staff when I'm not physically with them. Skype and email help me stay up-to-date on company projects -- and allow me to check in on my employees' personal lives and needs. These relationships make for a stronger business, plus they build my confidence in my Chinese team and help me sleep at night -- for a few hours, anyway.
Brent Gensler launched DefySupply at age 23, financing the company with money he'd received as bar mitzvah gifts.
-- As told to Kathryn Hawkins
Resources:
- Read one CEO's experiences in opening international offices.
- Understand cultural differences in doing business with international partners.