Location: Central Asia, northwest of China; a small portion west of the Ural River in eastern-most Europe
Capital: Astana
Population: 15,284,929 (July 2007 est.)
Language : Kazakhstan is a bilingual country: the Kazakh language, spoken by 64.4% of the population, has the status of the "state" language, while Russian, which is spoken by almost all Kazakhstanis, is declared the "official" language, and is used routinely in business.
Lifestyle & Aspirations
Many Kazakhs lead a fairly simple life, revolving around extended family and the church or mosque. There are, however, a growing number of leisure interests.
There are more than 200 sanatoria (rudimentary spas) which promote medical tourism, although not in the same luxurious sense that a Westerner might understand. Hiking, hunting, trekking and mountain climbing are popular in the Tian Shan mountains.
For years, Kazakh culture has revolved around the horse, as a form of transport, for sport and for eating. Horses are small and rugged, adapted to the mountain and steppe landscapes. Regular competitions take place, such as baiga, kiz-kuu and kokpar. Kazakhs who do not own a horse will rent one by the hour for lessons, treks and versions of polo.
In winter, ice skating, ice hockey and particularly speed skating are popular. Skiing is developing, but more for the middle classes than anybody else.
The country has numerous lakes and thousands of rivers, where fishing, rafting and canoeing are popular.
Since independence, leisure facilities have sprung up in all major towns, among them casinos, bowling alleys, bars, international restaurants and circuses.
In Almaty, there are a number of libraries, bookstores where one can find magazines, newspapers, books, and videos in English.
Sauna, locally called banya, is an integral part of the local culture. Typically you sit (naked) in a steamy-hot banya and then cool down in a body of water - pool, shower, and in winter, a snow bank. Birch branch beatings are available for the true enthusiast to further stimulate the circulation.
The Essentials (10 Key Tips)
1. Kazakhs have a strong sense of national consciousness and are proud of their tough, nomadic traditions.
2. Language is flowery and elaborate, with long speeches and colourful toasts.
3. Managerial qualities that are highly valued include intelligence, fairness, abililty to direct and an ability to listen.
4. Kazakhs have a strong sense of face and do not like direct criticism. They use an indirect, roundabout communication style.
5. Business is based on relationships, which are built through frequent meetings and regular entertainment.
6. Society and business are strongly hierarchical, reflected in everything from family relationships to seating plans at a banquet.
7. Increasingly employees are asked by their supervisors to generate ideas, but in key issues decision-making is still very much on a top-down basis.
8. Kazakhs have a vague sense of time and will take a long time over negotiations and decisions, although the entrepreneurial middle class is becoming more results-orientated.
9. Kazakhs believe in a win-lose outcome to most transactions and will expect you to make concessions.
10. Despite the historical control of individual opinions, nowadays many younger Kazakhs express their emotions quite openly, both in social and business settings.
Working with the Kazakhs
Working with the Kazakhs can be immensely rewarding as they are keen to learn, hungry to do business with the West, and can be loyal friends once you have won their confidence. There is, however, still a big issue in the country with corruption and lack of transparency, despite the government's efforts to stamp these out. Nepotism still helps enormously for anyone hoping to make it from middle management in to the elite ruling class. State-run organisations are still highly complicated, centralised and vertically structured, they still have a rigid decision-making structures, although Western business practices are creeping in now.
Doing business in Kazakhstan requires stamina. Stamina to hold out throughout long and often emotional negotiations; to survive the endless round of business entertaining and vodka-drinking; to join in the vigorous outdoor activities; and simply to get by physically in a country which is essentially still quite difficult to negotiate, with shaky infrastructure, unreliable internal airlines and dangerous roads. Patience is also a very useful virtue, as Kazakhs have a relaxed attitude to time and deadlines and will think nothing of spinning out your business trip to suit their own needs.
Making a Good Impression
Dress smartly, prepare thoroughly and keep an open mind. A sense of humour is appreciated - Kazakhs love jokes, especially over a meal with vodka. They are fiercely nationalistic and feel superior to many of the other central Asian states, so be sure to admire the beauty of the countryside. Be prepared to join in whatever is thrown at you - the communal banya, or sauna (visiting businesswomen will not be expected to sauna naked with Kazakh men - it's more a male ritual); drinking vodka shots; making your own toasts; eating unfamiliar food, like horse fat and sheep's head; and going on hiking or hunting expeditions to the countryside.
Be ready to negotiate hard and to stand your ground; like Russians, Kazakhs expect a win-lose situation so will be watching for you to make concessions.
Do not be afraid to make poetic, elaborate speeches and detailed presentations about your company.
Be ready to speak (possibly through an interpreter) in Russian for business meetings but learn some phrases of Kazakh for socialising.
It may help to show an interest in horses - Kazakhs are horse-mad and like fast and furious games that are a variation of polo.
Business Etiquette
Business cards are widely used and should be printed in Russian on one side and English on the other. Cards are exchanged at the beginning of meetings and should be politely examined before being put away.
Shake hands on greeting business associates and saying goodbye. Kissing on greeting and farewells is usually reserved for very close friends and family, and bear hugs are saved for after big drinking sessions. Body language may be expressive and poetic. Kazakhs are used to wide open spaces and may take up a lot of room during an argument, with a lot of arm-waving and gesticulating. Take note that Kazakhstan shares some superstitions with Russia. One is that shaking hands across a doorway is a sign of bad luck.
Kazakhs are mostly straightforward, polite and direct in their communication style. They are warm and hospitable, and while they may appear argumentative, they are always polite. Deference must always be shown to older people and you should always bear in mind that it is important for Kazakhs to save face. Any overly zealous, aggressive or pushy behaviour on a visitor's part could cause offense, as could direct criticism to someone's face.
Be careful with gift giving, as bribery is a sensitive issue. Respect your company's culture and the laws of your own country and of Kazakhstan. Small tokens like items bearing your company logo, chocolates or mementoes from your country are appropriate, or a good bottle of brandy. The same applies when you are visiting a home. Penalties are being introduced for anyone indulging in what might be construed as bribes.
Business Meeting Culture
Before the meeting
Plan a meeting up to a month in advance or longer for government officials and use the services of a local agent or fixer to get it set up if you need introductions. Kazakhs are amenable to direct approaches, too; they are keen to do business with the West. Arrange for interpreters at the meeting. Find out who is coming so you can make a seating plan; the hierarchy is formal and the most senior people should be seated furthest from the door.
During a meeting
Arrive on time but expect to be kept waiting. Chai (tea) should be offered to all guests, or vodka if there is likely to be something to celebrate. Use the first meeting as a vehicle for establishing a relationship and putting the other side in context. Kazakhs are in no hurry to rush things along. Expect to make a long, detailed presentation about your company and what differentiates you from your competition. Kazakhs are attentive listeners but mobile phones will ring and discussions can easily go off at a tangent.
After the meeting
Expect to sign a 'protokol' as a kind of summary of what was discussed, particularly if dealing with old-style government institutions. This is not a legally binding document. If time has run out, the meeting is likely to be rearranged to continue the next day. If a deal has been agreed on, it is appropriate to arrange a feast to celebrate. Kazakhs may also invite you to their houses for chai, or to the banya (sauna) or for a weekend of hunting in the country.
Motivating Others
Kazakhs are motivated by a sense of kinship and belonging, while those with ambition are driven by power. As the country is still really only starting out on the long road to a free market economy following the breakup of the Soviet Union, there are some who will abuse power. Corruption is still an issue, and nepotism is still rife. Respect your company policy and the laws of your country and of Kazakhstan at all times when confronted with either.
Money is also a big factor for Kazakhs, who are now exposed to a more materialistic world and have an increased desire for cars, mobile phones and their own homes. For most, though, it is also a sense of belonging and a sense of having a stake in something that is the strongest motivator. A sense of being part of something in which the West is involved is also important; a joint stock company with a prestigious Western investor is an attractive place to work.
Companies perpetuate this feeling of belonging by throwing lavish parties for their employees, at which management and shop floor workers mix freely. National holidays, special company anniversaries, birthdays and even project completions are celebrated by parties thrown many Kazakh businesses. In addition, Kazakh employees might expect personal birthday bonuses, medical insurance, residential housing, pensions, meals and sometimes, financial assistance for poor families.
Effective Presentations
Kazakhs are attentive listeners and will usually sit through a presentation without interrupting, although they may answer their mobile phones. They like a lot of detail, avoiding exaggeration and grandiose claims. Flowery, elaborate language is fine and the presentation should be delivered with energy and passion.
Westerners and Russians are viewed with a certain cynicism; there is still a suspicion that foreigners are only acting in their own interest and are out to make money from Kazakhs. In the Kazakh (and Russian) mind, there can only be one winner in any transaction.
Avoid starting off with a joke at the first meeting, although humour can be introduced once you know your counterparts. Use plenty of visuals and clearly-written handouts in Russian, which should be distributed after the presentation. Include background information, facts and technical details. Remember that you will need an interpreter, for your talk and for the questions at the end.
Do not be overly direct in the presentation or the questions at the end. Kazakhs tend to approach things in a more roundabout way.
Identify who the most senior people in the room are and address some of your points to them; it's important to acknowledge them.
Managing Relationships
Relationships are changing in Kazakhstan, between senior management and shop floor workers, and between foreign investors and Kazakh partners. The Republic is still shaking off the ties of communism and moving towards a Western-style economy but in a rapid, forced way rather than a natural evolution, so relationships can be challenging. Senior managers may be lacking in management and people skills - but may have great technical knowledge. Motivation techniques may be rudimentary or non?existent, as in communist times, it wasn't considered necessary to motivate staff. Those who can see a quick route to riches or power may abuse their position.
The introduction of modern feedback techniques takes some getting used to for Kazakhs, who are not accustomed to direct criticism and will avoid confrontation in order to save face.
At the same time, anybody wanting to work with Kazakhs must understand their strong sense of kinship and the need to form personal relationships with their business partners. Maintaining these relationships means frequent visits, plenty of entertaining and careful monitoring of progress on any given project, as Kazakh time is not the same as Western time.
Dealing with Kazakhs is challenging, but ultimately rewarding, as they are passionate, loyal, hospitable and proud people.