Keith Budge
Mark Pretty interviews
Keith Budge, Senior Vice President & General Manager, Asia Pacific & Japan, Business Objects – an SAP company
Business Objects is the global leader in Business Intelligence software. The company is in the final stages of a friendly takeover by SAP. Keith Budge, Business Objects’ Asia Pacific Vice President has lived and worked in Asia since 1993. In this interview with mosaic, Keith shares some of his experience.
MP: “Keith, you first moved from Australia to Singapore to take an Asia Pacific role 15 years ago.
As you look back, what have you learned?
KB: “Asia is not one market and it is a mistake to think of it as one market. There are significant differences in doing business in the many countries of Asia. There is economic diversity, differences in business structure, different government policy and then huge diversity of culture. The differences in these points between India and China is as great as the differences between the US and Japan. What is common across the region is that all Asian cultures are concerned about their relationship with you as a supplier. They need to reach a point of confidence in your company and with you as an individual before you can do business.”
MP: “What do you consider as the biggest mistake that new entrants to the Asia region make?”
KB: “Asia looks for you to commit. You can’t open an office in Asia with a short term view. People in Asia prefer to deal with the same people over a long period of time. The two year assignment in Asia does not work.
It’s about five and ten year commitments.”
MP: “Most US and European companies look for quick results. Have you had difficulty in the past helping executives at head office understand the longer term view needed in Asia?”
KB: “I am sure a lot of people struggle with this problem. What has worked for me has been to create opportunities for the US executives to visit Asia and get them close to the business. A brief visit to Singapore and
Tokyo does not give one a realistic understanding of doing business in Asia. They need to meet customers and the team. I have seen a number of companies doing this now and I believe it works well.”
MP: “If your customers in the various countries are culturally diverse, then surely your workforce must be also. How do you manage in this complex environment?”
KB: “People need to understand that you respect them and their culture and then communicate with them in a way that they understand. Not everyone operates at the same pace in Asia. So, as an example, Australia, Singapore and India, all operate at one fast pace, while in China and Japan, things take longer, change takes longer. So, in management meetings, you need to create space for your managers whose first language is not English to put forward their perspective. If you don’t ask the question in Asia, you may not get the important input you need.”
MP: Is there a need to use different business models in different parts of Asia?”
KB: “All of my experience in Asia has been in the ICT space and in this sector, it is critical to have the right partnerships in place. The direct model does not work in some countries. If you don’t get this right, it is almost impossible to be successful. If you enter a new market in a rush and select the wrong local partner, it can be very difficult to exit the relationship and a restart becomes problematic.”
MP: “So, is it experience in the region that allows you to choose the right partners?”
KB: “Experience and local knowledge will help, but for new market entrants, the right care and due diligence will get the job done. The trade associations and Chambers of Commerce in all of the Asian countries are very helpful. They are more than willing to offer advice and opinion. It’s just about doing your homework.”
MP: “How about working with governments in Asia?”
KB: “In some markets, China and Vietnam, business is strongly influenced by government and also there is a great deal of business to be done with government. In these countries, you need a program to build relationships in government. In Australia, Singapore and India, this is less important and business is conducted on a commercial basis similar to the US. China has 27 provinces, so there is a great deal of people to have contact with in government. It is important in these markets to have a person in the company who specialises in this area.”
MP: “In summary Keith, what would you point out as the key focus for newcomers to Asia?”
KB: “Without hesitation, I would say that it’s about:”
- Understanding market diversity
- Long term commitment to customers
- Partnering
- Managing a diverse workforce
This interview was conducted by Mark Pretty, an Asia based Director of Mosaic Global Executive Search
