How to Understand Russian Business Mindsets

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