Trust Is Not Outsourced

After my previous posts on international business ‘Everybody Does the Same Thing Differently’ and ‘Not Everything Needs to Be Said’, I’ll share my observations on doing business in Latin America and working with Latin Americans that go beyond stereotypes and -in my opinion- form the basis for success in Latin America.

TRUST IS NOT OUTSOURCED

The Latin American does exist
Many observers are of the opinion that the Latin American does not exist based on the multicultural dynamics across a large geographical area. Indeed, there are major differences between people across the region and the Latin American may not be easily boxed in. But the same is true for Europeans, Africans -even North Americans- and focusing on differences doesn’t provide practical information. What people have in common is more important. The commonality provides practicality.  

Uncertainty drives behavior
As the consequence of a variety of historical developments a strong focus on family and group thinking exists in Latin American regions. Adapting is second nature in the context of the group and family culture: adjusting personal goals to accommodate the ‘greater good’ is not uncommon. Combine the family culture with historically unstable political and economic times and a better understanding of how relationships are being built starts to emerge.

The flexible bureaucracy
Many times I heard Latin Americans explain how their lack of an organized approach is offset by the positive aspects of being flexible. I do believe that the average Latin American adjusts easier and quicker to change in comparison to North Americans. Change defined the Latin American people. However, uncertainty in the political and economic system also triggers laws, rules and corporate policies to attempt applying control. In turn, Latin Americans develop creative flexibility in interpreting the rules to get things done through a bureaucratic labyrinth. Many times successfully.

Trust is money
Given the relatively strong group culture, as well as a perceived uncertain environment, a rigid bureaucracy and the individual flexibility, success in business is greatly determined by one word. Trust. Not the trust in institutions, but the trust in people. I am referring to the personal relationships based on which uncertainty and bureaucracy can be conquered together for the foreseeable future.

Trust is not outsourced
I am not stating the obvious about trust being important in Latin America. Obviously, trust is the pillar in every (business) relationship around the world. However, the trust levels needed for a functional business relationship are different across cultures and are not reached in a similar way. Trust in the USA (where I live) and in The Netherlands (where I am from) is partly outsourced to institutions and companies that relatively enforce laws and rules more than in Latin America. The Latin Americans don’t use ‘trust, but verify’ that much. They use ‘don’t trust and verify’ more. That is why time is not money in the Latin world. Time allows relationships to develop, trust to be established, opportunities to be explored and mistakes -that could cost money- to be avoided.