Doing Business in Australia

Culture is often one of the most neglected issues for companies undertaking international expansion and is often the cause of unsuccessful market entries.

Not only should cultural differences be understood, but they should also be recognised in practice. This is particularly important when market entry is undertaken through partnerships, joint ventures, acquisitions or mergers with companies with existing employees and management.

Australia is highly multicultural however there are a number of important characteristics, cultural traits and values that pervade both business and personal relationships in Australia. These values encompass equality, tolerance, solidarity, optimism and friendship.

Australians are generally considered welcoming with an easy-going, informal attitude. The concept of “fair go” is an important value in the Australian psyche. 

A major Australian cultural trait is egalitarianism. Australians, relative to many other countries, believe that all are equal and value equality above hierarchy, status, patronage and class. Australians do not respond well to over-inflated, pretentious or superior professional and personal attitudes. Status through achievement is often respected more than titles and rank.

Australia is also considered to exhibit individualism traits whereby society is loosely knit with the expectation that people look after themselves and their immediate families. In business this translates to employees being self-reliant, displaying initiative and with promotion expectations based on merit or achievement.

Other Characteristics
•    Informal, open with a direct communication style
•    Australians work hard but value a work-life balance
•    Pragmatism, initiative and a “can do” problem-solving attitude.

Building Relationships

For an international company, a commitment to the Australian market through regular visits, engagements and meetings is crucial. Local support and service is also an important consideration. Australians will appreciate and value commitment to market and sharing of new ideas or information.

Relationship development – rather than a high-pressured or hard-sell focused approach – will typically generate more success.

Teamwork and being a team player are important and opportunities for building positive teams, bonding and socialisation are actively encouraged. Socialisation across multiple levels within organisations is also the norm.

Leadership is characterised as democratic and participative; successful leadership is inclusive and accommodating of employees’ and others’ opinions and proclivities.

Meetings

Meetings should be arranged well in advance ideally with at least 3 weeks’ notice for in-person meetings. Meetings are generally relatively easy to arrange.

Punctuality and delivering to deadlines are considered important. If any lateness is anticipated, it should be communicated in advance.

A firm, friendly handshake is the customary greeting if meeting in person. Business cards are exchanged without formality. No insult is intended if a business card is not offered; the person may not have one. Writing on business cards (i.e. note-taking) should also not be considered offensive.

During meetings, there is usually some relaxed small talk during the first few minutes of meetings before getting down to serious business quickly.

Meetings are generally characterised as open, accepting of contributions and debate. Meetings are often used to decide a solution or way forward with detailed work and implementation taking place after the meeting.

Informal style meetings are generally favoured over highly formal or structured meetings. If making a presentation, avoid hype and over-exaggerated claims.

Decision making can be slow and protracted with multiple levels of authority sought.

Communication Style

Australians will tend to be relatively plain speaking and have a direct style of communication. There is an openness and acceptance of contributions, challenges or debating ideas openly even between junior and senior managers.

A more consultative, inclusive communication or management style will be more successful than an authoritarian style.

Australians may also incorporate relaxed, colourful or humorous dialogue into discussions. Humour may at times seem self-deprecating.

In most cases, first (Christian) names are usually used even at an initial meeting.

Australian English differs from other varieties of English (such as British or American English) in vocabulary, pronunciation, register, grammar and spelling. Australian spelling is closer to British than American spelling (i.e. “u” in colour or flavour, “s” not “z” in realise or finalise and “re” not “er” in centre or theatre, etc.). The Macquarie Dictionary is a standard for Australian English spelling. The Australian National Dictionary of Australianisms is a dictionary of Australian words, expressions and idioms.