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How to Understand Russian Business Mindsets

There are some fundamental mindsets of thedream about the Golden Age, about the
Russian business people. Any person doingheavenly city - Modern Rome. They believe
business in modern Russia or with Russiansthat Mankind always goes onward only if the
would benefit from knowing these as much ofdivine light lit the way. Until the fall of
business behaviour is guided bycommunism they seldom doubted this messianic
mindsets.These five mindsets are1. How thingsmission. The current state of Russia, with
happen or don't2. Decision making -the high prices, insecurity, terrorist
Hierarchy3. Concept of time4. Connections -attacks and failure of post-communist
"Blat"5. Faith in own system6. Conspicuouscapitalism to bring heaven on earth has seen
consumptionHow things happen or don'tInthe Russian mindset moving towards, "Let's
Russia how things happen or don't is alearn and adopt everything Western!" while
mystery very difficult for outsiders tonever forgetting "Mother Russia knows
understand. For example, in neighbouringbest." The fact that people complain about
Finland things (excluding matters to docurrent state of affairs doesn't erode this
with politics) usually happen ratherbasic messianic faith. The following joke
systematically in a bureaucratic fashion andhighlights this faith."A Russian and an
the process is usually rather transparent.American die and they both go to hell.
In Russia nothing important happens withoutSatan, the manager in charge of hell, asks
a crisis or big drama which forces people tothem, "Which hell do you prefer, the
act and the forces behind such crises couldRussian one or the American one?" "What's
remain hidden from view. When you are caughtthe difference?" the Russian asks. "In the
up in this "period of inaction" don't tellAmerican hell, you will be forced to eat one
the Russians that they are lazy orbucket of waste every day; in the Russian,
inefficient. This is a big mistake. Theytwo," Satan explains. The American decides
are immensely proud of their culture, theirto go to the American hell. The Russian,
status as a superpower and achievementsbeing a patriot, chooses the Russian hell.
like space exploration.Decision-making -One year later the two men run into one
HierarchyRussia is a very hierarchic societyanother. "How's life?" the Russian asks.
and decision-making processes are very"Can't complain," the American answers. "I
different from western (especially Finnisheat one bucket of waste every morning, and
and Swedish) models. The hierarchical naturethen I'm free for the rest of the day. What
of Russian society with very large powerabout you?" "It couldn't be better!" the
distance is very important to remember inRussian explains. "Just like back on earth!
business dealings. Who approaches whom inThey're either late with waste deliveries,
business dealings is crucial to theor they're having bucket
success. Nowadays, Russian businesspeople payshortages."Conspicuous consumptionThe
a lot of attention to how they are dressed.American economist Torstein Veblen first
Russian people in general probably spend morecoined the term in his "The Theory of the
money from their family budget on clothingLeisure Class" back in 1899. Veblen argued
then any other nation in the world. Those whothat economic life is not driven by notions
can't afford to buy top fashion brandof utility, but by social vestiges from
clothing (such as Versace, Armani or Hugopre-historic times and much of today's
Boss) prefer to be dressed in cheaper butsociety is just a variation on early tribal
still well made clothing. There is an oldlife. This tribal character of Russian life
Russian proverb--"They want to meet youis very central to understanding the
depending on how you're dressed and they saystratification of Russian society. Brands and
good bye depending on how wise youvisible symbols of success are priority
seem."Concept of timeMany business people innumber one. Here is a nice joke, which is
neighbouring Finland have started adoptingvery descriptive about the NRs or Nouveau
the American concept of time - time isRiches.After a car crash a NR is lying on the
money. This is rather strange to the Russianside of the road, weeping aloud. Oh, my
concept of time. Though he may not appearBMW! - He wails, - Oh, my BMW!!! A passer
to be very academic, the Russian businessmanby is shocked to hear it and asks "How can
is very conscious of how Russia rose fromyou cry about your car, when you've just lost
Novgorod days to become a superpower.your entire hand?" The NR evaluates the
Russian time does not go in a straight line;situation and resumes his cries: Oh, my
it is more like a process of quantum leapsRolex! "Rana Sinha was born in India, studied
and small circles with no clear line joiningand lived in many places and travelled in 80
the circles. So this concept of long time
permeates every action of the Russiancountries, acquiring cross-cultural
businessman. If you lose your nerves whenknowledge and building an extensive network
things are not moving fast, you show signs ofof
immaturity.Connections - "Blat"In Russia
nothing significant moves without "Blat" orprofessionals. He has spent many years
connections. People remember and countdeveloping  and  delivering  Cross-cultural
favours like currency. There is a great
emphasis on building and maintainingTraining, Professional Communications
personal cordial relationships throughskills,  Personal  Development  and
respect, presents, favours and counter
favours.Faith in own systemThe neighbouringManagement solutions to all types of
Finns and Swedes believe that the Finnish ororganizations and businesses. He now lives in
Swedish version of the democratic welfare
state is the greatest achievement of the
human mind and they are very proud of it.Helsinki, Finland and runs which
The Russians have a messianic approach tospecializes in human resource development as
being Russian. For them it is thewell  as communication and management skills
embodiment of the dream about perfection:
nature, the world, man, man's life, thetraining with cross-cultural emphasis.



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