Sustaining international links through the downturn

As competition intensifies, this may mean the difference between weathering the storm or going under.

Marta Mager, sector director at New Zealand Trade and Enterprise (NZTE), says staying close to the people you trade with is more critical than ever before.

“The natural human reaction to crisis is to retrench and huddle close to home.

“It is all too easy to disconnect from your networks because you are worrying about what is happening here.”

Mager says Kiwi companies must protect their own bottom line.

But they also need to demonstrate empathy with their trading partners’ circumstances.

Management consultancy Deloitte recently carried out a study for NZTE on building business in Australia.

It found that connectivity with the marketplace is one of the five fundamentals for successful business in Australia, says partner Alasdair MacLeod.

That means as much face-to-face contact as possible.

And the best person to model the company’s commitment is the chief executive.

“Face-to-face contact is a recurring theme in all of the studies of how best to do business offshore,” says MacLeod.

“It doesn’t work to just fly in once a year: you need ongoing commitment.”

The Deloitte report shows that businesses need ‘five Cs’ to succeed in the Australasian market: clarity, capability, connections, commitment and cash.

It found local companies need to budget NZ$1 million to succeed in establishing in Australia.

“You can’t build a relationship at a distance but you can maintain it,” says MacLeod.

“Send snippets of business news that might interest [your offshore business contacts].

“Download news from the Stuff website. Fax them an article you’ve read.

“Flick them a quick email or ring for a chat.”

Mager’s advice is to keep talking -- she recommends a weekly phone call -- and to stay close to clients’ issues and concerns no matter what.

“There is nothing worse than silence.

“At a time when business all over the world is feeling uncertain about what lies ahead, your overseas clients need to know that they can depend on you, that you’re there to help them and are committed to getting through the hard times together.”

MacLeod recommends short, frequent contact.

Ask questions like, ‘What’s the outlook for your business? What’s happening in your sector? How can I help you with that?’

Live in the market

Airport technology supply company Glidepath is recognised for its strong and effective client relationships.

CEO Ken Stevens demonstrated supreme commitment to establishing the company in the US when he uprooted his family and went to live in the States for five years.

That bore fruit. He now has excellent contacts in an agency critical to his sector, the Transport Security Administration (TSA).

“We’ve got to know all levels of the airport hierarchy.

“Relationships at the top level are highly important.

“We know what’s on the charts long before it hits the streets.”

Once plans are in the public domain, says Stevens, there is often someone lined up for the job.

Glidepath operates in 61 countries and has 13-15 contracts on the go at any one time. Each averages NZ$6 million.

The company is making real inroads in India, he says, where relationships are an even bigger factor than price in closing a deal.

“They’re what gets you in there. We relate well to the Indians, because we’re non-aligned.

“And cricket chat is a great way to break the ice and let them see New Zealand produces more than food.”

New Zealand businesspeople have an international reputation as honest, open and easy to deal with: although also somewhat naive and unworldly.

Asia New Zealand Foundation research mirrors NZTE’s findings on this.

Foundation executive director Richard Grant says it clearly shows that New Zealanders tend to underestimate the importance of relationships in Asia.