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Czech Republic
Images:Czech Republic

Location: Central Europe, bordering Austria 362 km, Germany 646 km, Poland 658 km, Slovakia 215 km

Capital: Prague

Population: 10,246,178 (July 2004 est.)

Language: Czech.

Lifestyle & Aspirations
While family life is important in the Czech Republic, the Czech people are not as family-orientated as those in some other European countries in Europe - especially those in the south like Italy or Greece. Families tend to be nuclear, rather than extended.
After the revolution, lifestyles in the country began to change. In their new-found freedom, people could better pursue their interests. People's interest in work is not necessarily solely a matter of money; it also reflects their genuine vocational interests and desires for personal achievement. The opportunity to be creative is very important, at least as much as earning money. Czechs are, therefore, in more recent years working longer hours than previously and are also enjoying higher standards of living.
There is a noted interest in sport and if people are not active participants they are keen spectators, particularly of football and ice hockey. More young people are discovering outdoor pursuits like hiking and skiing, as well as overseas travel. The Czechs also have a long tradition of enjoying the arts and are great supporters of musical concerts and the theatre, even if, as they may wryly explain, the tickets now cost more.

The Essentials (10 Key Tips)
1. Maintain an attitude and demeanor that is friendly, but formal and respectful. Czechs seldom move to a first-name basis with people outside their extended family or very close friends. Wait for an invitation to be more informal.
2. Several meetings may be needed for building trust and making a decision. Avoid high-pressure tactics. Business is conducted slowly and follows protocol.
3. Greetings should be made by shaking hands and by using formal and academic titles like 'doctor' or 'professor'.
4. Keep your discussions forward thinking, calm practical and logical.
5. Recognise that careful planning, rules and regulations provide a sense of security.
6. Be very punctual for meetings. Expect some small talk before business is discussed.
7. Make sure your presentations are accurate, detailed and thorough. Have charts and figures to back up your claims.
8. Be aware that Czech communication can be both relatively formal and indirect. They will often go out of their way to protect someone's feelings. An absolute 'no' may not be made. Instead, you might hear "We will see" or "It is difficult."
9. Be respectful of the hierarchy in Czech business organisations. Decision making authority is held at the top of the company. Address comments to the highest-ranking member of a Czech negotiating team.
10. When attending a social event, do not discuss business. Czechs tend to separate business and personal lives.

Working with the Czechs
In the Czech Republic, it is advisable to mirror the characteristics of the locals. Their calmness and temperance is admirable and they will not respond well to those who are aggressive or boastful in their approach. They are traditional, punctual and formal and although they have adapted well to their new economic and social conditions, the very laid-back style which may prevail in countries like the United States will still be somewhat alien to them. It is important to act with respect and dignity at all times. Good manners and a conservative sense of dress will stand visitors in good stead.
Czechs avoid confrontation and seek consensus when dealing with others. They are good listeners and do not generally interrupt. Although they are creative, they prefer structure and certainty in business matters and respect rules and set practices. They are also pragmatic and focused and prefer to get on with things rather than to engage in lengthy preambles and discussions. Staffing structures are hierarchical and should be acknowledged and respected. Managers may not be as keen to delegate to subordinates as they are in other countries and strong leadership is expected - and respected. In the post-Communist era, people are still not accustomed to working under intense pressure; they are simply not used to it. Motivational techniques, therefore, should be applied carefully.

Making a Good Impression
The Czech people are renowned for being tolerant and calm - characteristics which have been much needed throughout their long history. They have resisted oppression and aggression and will not take kindly to those who are overbearing or bombastic in attitudes and behaviour. They have great respect for democratic and egalitarian ideals and respect order and rational approaches to matters. They are not confrontational and will not respond well to those who are brusque or aggressive. Czechs are well-educated, disciplined and punctual and will appreciate the same traits in others. They are also impressed by academic qualifications, so make the most of these.
The Czechs are traditional, reserved and chivalrous. Those who present themselves in a formal but friendly way and remember names and titles will be especially welcome. Overly familiar behaviour will not be appreciated. Measured, thoughtful communications will impress and efforts to find win-win solutions are preferred.
Czechs are noted for being deal-orientated and will get down to business with reasonable dispatch, not spending undue time on small talk. A knowledge of Czech history and of the accomplishments of the Czech people will nonetheless be admired. Discussion of political matters and war should be avoided or handled with care. Don't ask too many personal questions, either. These should be kept for close friends.

Business Etiquette
Business cards
Business cards should be translated into Czech on one side and should list your academic qualifications. Exchange cards at the beginning of a meeting and put your counterpart's card on the table in front of you.

Body language
A good physical distance - at least a metre or 40 inches - should be maintained between people in meetings and social settings. Very close physical contact may be seen as intrusive and will make Czechs feel uncomfortable.

Communication style
Czech communication style is direct but reserved and less effusive that the more outgoing Poles, Slovaks and Hungarians. Czechs are direct in manner, not unlike Germans, although they do not like to give negative answers and may be less straightforward when trying to say 'no'. They are not especially demonstrative when it comes to non-verbal communications. Shrugging shoulders means 'I don't know' or 'I don't care'. Holding thumbs in a closed fist is a way of wishing someone luck. An outstretched hand with thumb pointing to one's nose is a sign of ridicule, while shaking a finger away from one's face means reproach or accusation.

Gift giving
It is not necessary or customary to offer gifts in business situations but gifts will be accepted graciously and something which is which is from, or inspired by, a visitor's home country or organisation, would be especially appropriate. If you are visiting a home, women appreciate flowers and men like alcoholic drinks.

Business Meeting Culture
Before a meeting
Czechs like order and structure so plan meetings in advance and let them know, if possible the order of events you expect. Make arrangements for any interpreters you may need to have assist and let others know that they will be there. Have translated material, including business cards and promotional material, prepared. Proposals should be backed up with facts and figures. Czechs are punctual so expect them to be on time. If there are to be any delays or if someone is held up, you should provide a proper explanation.

During a meeting
Czechs value privacy and are not quick to be familiar with business colleagues. They are cautious and develop friendships over a period of time. They also like to attend to business matters quickly, so while some pleasantries can be exchanged initially, your counterparts will not like to prolong business discussions for long. Proper titles should be used unless indicated otherwise.
Establish the status of those with whom you are meeting. If you are hoping to negotiate, it is important to do so with the final decision maker.
Discussions and negotiations should proceed in an orderly fashion. Although the Czechs are creative and entrepreneurial, anything which digresses too far from the expected schedule may not be well received. They are polite and formal and do not generally interrupt others and will take offence at any emotional or dramatic behaviour.
They will like to proceed in a linear fashion and contemplate matters with care.

Following a meeting
Meetings should be ended politely and with respect and thanks shown to the Czech participants. Agree on what matters should be dealt with after the meeting. Follow this up in writing. Discussion points will be considered thoroughly and with reference to the relevant protocol; while they often appear to resent authority, Czechs are bound by many rules and regulations. Decisions will be made slowly and methodically following a meeting, and will almost always be taken by top managers.

Motivating Others
Czechs are not natural team players, although getting along with colleagues is important to them. Helping each other outside the office is also not uncommon.
Money is not the biggest motivator. Work-life balance is important, and Czechs will resent being asked to work a lot of overtime if it encroaches on family time, however good the money. Individualism is also important, and a chance to improve oneself. Not many companies offer training and it can be an essential part of a deal between a foreign investor and a Czech business.
Company incentive schemes have been introduced but do not always work. Czechs are unused to meeting targets based on market demand and team members are not expected to be assertive or to question their managers; in the past, this would have resulted in being fired. Putting people under extreme pressure to perform will not work, either. It is more important to introduce change gradually, and to combine performance-related schemes with training.
Senior managers, not surprisingly, are motivated by status and perks. A typical package for a senior manager includes a salary plus bonus based on sales or performance. Many managers expect a mobile telephone and a laptop as well and in senior positions, a car. Medical insurance and pension contributions are also offered.

Effective Presentations
Presenters should normally expect to use an interpreter when speaking to a large audience. Slides and handouts should be in English and Czech. Presentations should be straightforward, factual and unambiguous, and should emphasise a win-win situation. Boasting or exaggerating are frowned upon and a boisterous or overenthusiastic presentation style may make the audience uncomfortable.
The Czechs are polite and gracious but not given to wasting time so verbosity will not be appreciated. They are very moderate in their behaviour so very aggressive pitches will also not be well received. They are well-educated and presenters will be expected to be well prepared and well informed.
Czechs will not interrupt but will listen thoughtfully. The local desire for orderliness should be borne in mind and presentations should be well structured and linear in argument. Questions may be asked but presenters should not necessarily expect any feedback. Audience members will consider information in a methodical manner. Information which has not been well received may be greeted with some sarcasm.
Czechs are not natural public speakers themselves. Few have had media or public speaking training. Presenting or speaking to an audience is not taught in schools.

Managing Relationships
Although it has made great strides since the revolution of 1989, the working environment in the Czech Republic may still be somewhat alien and in many ways, curiously backwards to business people from other countries. Czechs may be highly qualified and experienced technically, but lacking in people-management or marketing skills. Frequent visits may be important in the early stages of a relationship and business partners should given a change to raise concerns and develop good paths of communication. This will demonstrate your commitment to the relationship or venture.
Due regard needs to be given to the hierarchical structure of Czech organizations and top managers should be cultivated, as they are the decision makers. Czech business culture is still very rigid and top-down. While managers are concerned for their employees, the relationship is more paternal than egalitarian and there are greater gaps between employer and employees than in other countries.
Bear in mind that Czechs are respectful and avoid confrontation so care needs to be taken to foster relationships. Motivation will be more based on trust than on financial incentives, and on allowing space for creativity. Young Czechs are motivated by empowerment.

Source: Overview based on tmaworld resource data.
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