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How to Understand Russian Business Mindsets

There are some fundamental mindsets of proud of it. The Russians have a
the Russian business people. Any person messianic approach to being Russian.
doing business in modern Russia or with For them it is the embodiment of the
Russians would benefit from knowing dream about perfection: nature, the
these as much of business behaviour is world, man, man's life, the dream about
guided by mindsets.These five mindsets the Golden Age, about the heavenly city -
are1. How things happen or Modern Rome. They believe that Mankind
don't2. Decision making - always goes onward only if the divine
Hierarchy3. Concept of time4. Connections light lit the way. Until the fall of
- "Blat"5. Faith in own communism they seldom doubted this
system6. Conspicuous consumptionHow messianic mission. The current state of
things happen or don'tIn Russia how Russia, with the high prices, insecurity,
things happen or don't is a mystery very terrorist attacks and failure of
difficult for outsiders to understand. post-communist capitalism to bring heaven
For example, in neighbouring Finland on earth has seen the Russian mindset
things (excluding matters to do with moving towards, "Let's learn and adopt
politics) usually happen rather everything Western!" while never
systematically in a bureaucratic fashion forgetting "Mother Russia knows best."
and the process is usually rather The fact that people complain about
transparent. In Russia nothing important current state of affairs doesn't erode
happens without a crisis or big drama this basic messianic faith. The following
which forces people to act and the forces joke highlights this faith."A Russian
behind such crises could remain hidden and an American die and they both go to
from view. When you are caught up in this hell. Satan, the manager in charge of
"period of inaction" don't tell the hell, asks them, "Which hell do you
Russians that they are lazy or prefer, the Russian one or the American
inefficient. This is a big mistake. They one?" "What's the difference?" the
are immensely proud of their culture, Russian asks. "In the American hell, you
their status as a superpower and will be forced to eat one bucket of waste
achievements like space every day; in the Russian, two," Satan
exploration.Decision-making - explains. The American decides to go to
HierarchyRussia is a very hierarchic the American hell. The Russian, being a
society and decision-making processes are patriot, chooses the Russian hell. One
very different from western (especially year later the two men run into one
Finnish and Swedish) models. The another. "How's life?" the Russian asks.
hierarchical nature of Russian society "Can't complain," the American answers.
with very large power distance is very "I eat one bucket of waste every morning,
important to remember in business and then I'm free for the rest of the
dealings. Who approaches whom in business day. What about you?" "It couldn't be
dealings is crucial to the success. better!" the Russian explains. "Just like
Nowadays, Russian businesspeople pay a back on earth! They're either late with
lot of attention to how they are waste deliveries, or they're having
dressed. Russian people in general bucket shortages."Conspicuous
probably spend more money from their consumptionThe American economist
family budget on clothing then any Torstein Veblen first coined the term in
other nation in the world. Those who his "The Theory of the Leisure Class"
can't afford to buy top fashion brand back in 1899. Veblen argued that economic
clothing (such as Versace, Armani or Hugo life is not driven by notions of
Boss) prefer to be dressed in cheaper utility, but by social vestiges from
but still well made clothing. There is an pre-historic times and much of today's
old Russian proverb--"They want to meet society is just a variation on early
you depending on how you're dressed and tribal life. This tribal character of
they say good bye depending on how wise Russian life is very central to
you seem."Concept of timeMany business understanding the stratification of
people in neighbouring Finland have Russian society. Brands and visible
started adopting the American concept symbols of success are priority number
of time - time is money. This is rather one. Here is a nice joke, which is very
strange to the Russian concept of time. descriptive about the NRs or Nouveau
Though he may not appear to be very Riches.After a car crash a NR is lying on
academic, the Russian businessman is the side of the road, weeping aloud.
very conscious of how Russia rose from Oh, my BMW! - He wails, - Oh, my BMW!!!
Novgorod days to become a superpower. A passer by is shocked to hear it and
Russian time does not go in a straight asks "How can you cry about your car,
line; it is more like a process of when you've just lost your entire hand?"
quantum leaps and small circles with no The NR evaluates the situation and
clear line joining the circles. So this resumes his cries: Oh, my Rolex! "Rana
concept of long time permeates every Sinha was born in India, studied and
action of the Russian businessman. If you lived in many places and travelled in 80
lose your nerves when things are not countries, acquiring cross-cultural
moving fast, you show signs of knowledge and building an extensive
immaturity.Connections - "Blat"In Russia network of
nothing significant moves without "Blat" professionals. He has spent many years
or connections. People remember and developing and delivering Cross-cultural
count favours like currency. There is a Training, Professional Communications
great emphasis on building and skills, Personal Development and
maintaining personal cordial Management solutions to all types of
relationships through respect, presents, organizations and businesses. He now
favours and counter favours.Faith in lives in
own systemThe neighbouring Finns and Helsinki, Finland and runs which
Swedes believe that the Finnish or specializes in human resource development
Swedish version of the democratic as well as communication and management
welfare state is the greatest achievement skills
of the human mind and they are very training with cross-cultural emphasis.




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