If You Don't Have Guanxi, You Don't Have Much

One of the most overused, misused and misunderstood important words in China is Guanxi.

Guanxi, depending on the situation and to whom you are speaking, and  the age and sex of the person you are speaking to, has a variety of meanings.

The easiest, purest understanding for most Westerners, of Guanxi (pronounced Gwan Shee), is Relationship

But Guanxi means and implies much more at times. First, it is the core of what makes business work around the world; the interpersonal relationships of trust and mutual understanding that provide the platform for many business decisions. The old "it's not what you know, but who know" law.

However, the word and the meaning could also be construed incorrectly if someone walks up to someone in a bar and asks if they are interested in forming some Guanxi. You might get a response that is not what you had in mind (or, maybe you did).

Or, you could be of a certain age and lecture everyone about the importance of Guanxi and have everyone under 30 in the room look at you like the geezer that just arrived on a water buffalo from Outer Mongolia. In a world of teams versus individuals and social networks with "friends" you never met, the concept of Guanxi seems outdated at best to anyone who hasn't lived in the real versus the virtual world for very long.

We all tend to like to work with people we can trust, who will either help us, buy from us, we can relate to, or has given us something (not necessarily in the physical sense). And this is the essence of Guanxi and it takes years to develop if you want it to last for years.

In China, this can be magnified 10X. Call it what you will, but if you don't nurture a sense of Guanxi with key clients, suppliers, and other connections you are trying to develop and or support, you will likely fail after your first order or two. Someone has to know someone that knows someone else for you to ultimately get something done in China (and actually, come to think of it, probably the rest of the world as well).

Perhaps the best meaning of Guanxi should be the Western word Reciprocal. You don't have buy every dinner, but you should buy some. You should respond for a favor with a favor. And this does not mean bribes (although sometimes, somewhere, in the food chain, something like a monetary favor might be needed). 

Learn the meaning of Guanxi for your own situation and you will be on your way.

The take-away: In the movie "The Godfather" when asked how someone could repay the Godfather for something very important the Godfather had just done for that person, the Godfather says, "don't worry about it, but someday,somewhere, I will come and ask a favor of you; be ready."

More to follow...

Comments

[coach stores]

nothing is impossible for a willing heart.

[Justin Bieber Supra Shoes]

YES.you're one of my favourite people too! Definitely one of the sweetest. This is a beautiful list you have here, lady! I can't wait to try that ice-cream!