English: The language of Business - Part 1

March 22, 2019

English: The language of Business - Part 1

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Ready or not, English is now the global language of business. More and more multinational companies are mandating English as the common corporate language—Airbus, Daimler-Chrysler, Fast Retailing, Nokia, Renault, Samsung, SAP, Technicolor, and Microsoft in Beijing, to name a few—in an attempt to facilitate communication and performance across geographically diverse functions and business endeavours. 

Adopting a common mode of speech isn’t just a good idea; it’s a must, even for an American company with operations overseas, for instance, or a French company focused on domestic customers. Imagine that a group of salespeople from a company’s Paris headquarters get together for a meeting. Why would you care whether they all could speak English? Now consider that the same group goes on a sales call to a company also based in Paris, not realizing that the potential customer would be bringing in employees from other locations who didn’t speak French. This happened at one company Tsedal Neeley worked with. Sitting together in Paris, employees of those two French companies couldn’t close a deal because the people in the room couldn’t communicate. It was a shocking wake-up call, and the company soon adopted an English corporate language strategy.

 

 

Adopting a global language policy is not easy, and companies invariably stumble along the way. It’s radical, and it’s almost certain to meet with staunch resistance from employees. Many may feel at a disadvantage if their English isn’t as good as others’, team dynamics and performance can suffer, and national pride can get in the way. But to survive and thrive in a global economy, companies must overcome language barriers—and English will almost always be the common ground, at least for now.

The fastest-spreading language in human history, English is spoken at a useful level by some 1.75 billion people worldwide—that’s one in every four of us. There are close to 385 million native speakers in countries like the U.S. and Australia, about a billion fluent speakers in formerly colonized nations such as India and Nigeria, and millions of people around the world who’ve studied it as a second language. An estimated 565 million people use it on the internet.

The benefits of “Englishnization,” as Mikitani calls it, are significant; however, relatively few companies have systematically implemented an English-language policy with sustained results. Through Tsedal Neeley's research and work over the past decade with companies, she's developed an adoption framework to guide companies in their language efforts. There’s still a lot to learn, but success stories do exist. Adopters will find significant advantages.

Why English Only?

There’s no question that unrestricted multilingualism is inefficient and can prevent important interactions from taking place and get in the way of achieving key goals. The need to tightly coordinate tasks and work with customers and partners worldwide has accelerated the move toward English as the official language of business no matter where companies are headquartered.

Three primary reasons are driving the move toward English as a corporate standard.

1. Competitive pressure.

If you want to buy or sell, you have to be able to communicate with a diverse range of customers, suppliers, and other business partners. If you’re lucky, they’ll share your native language—but you can’t count on it. Companies that fail to devise a language strategy are essentially limiting their growth opportunities to the markets where their language is spoken, clearly putting themselves at a disadvantage to competitors that have adopted English-only policies.

2. Globalization of tasks and resources.

Language differences can cause a bottleneck—a Tower of Babel, as it were—when geographically dispersed employees have to work together to meet corporate goals. An employee from Belgium may need input from an enterprise in Beirut or Mexico. Without common ground, communication will suffer. Better language comprehension gives employees more firsthand information, which is vital to good decision making. Swiss food giant Nestlé saw great efficiency improvements in purchasing and hiring thanks to its enforcement of English as a company standard.

3. M&A integration across national boundaries.

Negotiations regarding a merger or acquisition are complicated enough when everybody speaks the same language. But when they don’t, nuances are easily lost, even in simple e-mail exchanges. Also, cross-cultural integration is notoriously tricky; that’s why when Germany’s Hoechst and France’s Rhône-Poulenc merged in 1998 to create Aventis, the fifth largest worldwide pharmaceutical company, the new firm chose English as its operating language over French or German to avoid playing favourites. A branding element can also come into play. In the 1990s, a relatively unknown, midsize Italian appliance maker, Merloni, adopted English to further its international image, which gave it an edge when acquiring Russian and British companies.

 

 

This article was originally written by Tsedal Neeley who is an associate professor in the Organisational Behaviour unit at the Harvard Business School and the founder of the consulting firm Global Matters. She is the author of The Language of Global Success and full credit goes to the Harvard Business School, who published this article over a year ago. This article has been reprinted for the purpose of education.

 

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