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In our last blog article, “Relationships Are the Cornerstone to Doing Business in Italy,” we took a look at the overall culture of the Italian business world and a few of the different business practices Americans may encounter when doing business in Italy. Companies that take the time to understand a country’s approach to business, business etiquette and protocol will not only have an easier time establishing a business but also increase their odds of being successful. Learning how to dress or who should pay for a business lunch may not seem important to your global strategy, but the more awareness you have of business etiquette in Italy, the more likely you will be able to earn the trust of your Italian colleague or the Italian consumer. In a country where relationships are held in the highest regard, establishing trust and rapport is a critical first step. It is important to note that there are distinct differences in etiquette depending on whether you are conducting business in Northern Italy or Southern Italy so be sure to do your research based on your destination.
Top Ten Business Etiquette Tips (when in Italy)
The following are a few areas you should take into consideration before travelling to Italy. This is by no means a comprehensive list of the differences between American and Italian business culture, but it is a starting point.
Relationships matter most. While we covered this in our last blog article, it bears repeating. In Italy, relationships are extremely important. All business flows from a network of relationships and it is essential to establish strong, long-term ties if you hope to be successful in the Italian market. Italians prefer to do business with people they know and trust so be sure to take the time necessary to build a rapport with potential colleagues, partners or other resources.
You are what you wear. With some of the top fashion houses located in Italy, it is not surprising that what you wear speaks volumes about the kind of person you are. The importance of appearance in Italy should not be ignored or dismissed. How you look can play a key role in the level of respect you receive so dress to impress. While the style of dress will vary by industry, it is important to be well-groomed and to wear good quality, well-cut clothes. In summary, the proper choice of clothing is a key component of business etiquette in Italy.
Personal space is a bit smaller. Italians tend to be affectionate, physical people so don’t be surprised if your personal space is invaded. Moving away or keeping your distance can be offensive or viewed as cold and unfriendly. As in the U.S., it is customary to shake hands at the beginning and end of any interaction. Over time, the handshake may be replaced by an embrace, indicating your relationship has reached an intimate level. This is one of the areas in which your experience will be different depending on your location (north versus south).
Schedule a meeting well in advance. If you are trying to schedule a meeting, you must make an appointment in writing at least 2 – 3 weeks in advance. Be sure your request is in Italian and reconfirm the meeting by phone, fax or e-mail. Avoid trying to schedule meetings in August, as many Italian companies are closed or employees are on vacation.
Leave the agenda at home. While American business meetings are (usually) structured and organized, meetings in Italy are typically informal. If there is an agenda, it will be extremely flexible and everyone at the meeting will have an active role. It is not uncommon to have frequent interruptions and side conversations or for parties to leave – and new participants to arrive – throughout the meeting. This is another area where you will find regional difference between businesses located in the north and those located in the south.
The group has it. Do not expect to reach a decision in a meeting. Meetings are intended to provide a forum for participants to express their ideas and opinions. For a decision to be reached, it is important to get group consensus and buy-in.
Personality trumps expertise. The person with the most knowledge or technical expertise is not necessarily the most respected. The personal qualities and loyalties an individual has play a bigger role in the level of respect he/she earns. Therefore, it may not always be enough to know what you are talking about. You have to be able to back it up with an authoritative personality.
Meals are about eating, not business. While hospitality plays a key role in Italian business culture, the focus of a “business” lunch or dinner is on building relationships, not discussing business. The conversation may come around to business, but you should be prepared to talk about non-business topics such as food, wine and sports. Also keep the following in mind: the honored guest sits at the middle of the table or to the right of the host; the host always pays; pass dishes to the left; keep your knife in the right hand and fork in the left and do not answer phone calls at the table.
When it comes to negotiating, patience is a virtue. Although the process varies between the north and south of Italy (Italians in the North tend to move at a faster pace than those in the South), overall the negotiation process can slow. To facilitate the process, never use high-pressure sales tactics, follow through on verbal commitments, and remember that many times a decision is based more on how you are viewed than on concrete business objectives. Be prepared for heated debates and haggling throughout the course of your negotiations.
In addition to learning about Italy’s business culture, be sure you fully understand the bureaucratic and legal requirements to incorporate and register a new business in Italy. You can find detailed information on the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy’s per-capita gross national income (GNI) at http://www.doingbusiness.org/.
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Article by Lesley Lyons
