Features To Consider For Efficient

Managing Of Boards In China

Tel : +86-21-6474-7064 |
simon-wan@cornerstone-group.com
 Features To Consider For Efficient
Managing Of Boards In China

China is one of the fastest growing economies in the

world and hence has been attracting foreign business
investors in large numbers.

However, one major problem faced by such investors

while setting up a business is China is that of efficiently
managing their boards.

This is because the traditional way of running a

business in China is significantly different from that of
the western countries.

Tel : +86-21-6474-7064 | simon-wan@cornerstone-group.com

 Features To Consider For Efficient
Managing Of Boards In China

This holds true even for the manner in which boards are
organised and managed within the two regions.

Given that most foreign businesses in China have a

considerable number of local people working for them
even at top management levels, this single fact influences
the working of their boards quite significantly.

That is why it is not uncommon for foreign businesses to

hire the services of companies offering board advisory in
China.

Tel : +86-21-6474-7064 | simon-wan@cornerstone-group.com

 Features To Consider For Efficient
Managing Of Boards In China

These companies help the foreign business investors gain

a better understanding of the below discussed key
concepts to be considered for efficient management of
boards in the country.

• Building Trust Is The Key

• Following The Hierarchy

• Having A Dynamic Business Culture

• Acknowledging The Cultural Differences

Tel : +86-21-6474-7064 | simon-wan@cornerstone-group.com

 Features To Consider For Efficient
Managing Of Boards In China

Building Trust Is The Key

In traditional Chinese business environments, the boards
are almost non-existent and are replaced by a group of
close knit family members. As such, the trust plays a vital
role in ensuring the efficient running of a board.

While the foreign business establishments might not be

able to replicate a traditional Chinese board within their
organization, they need to work consciously towards
building greater trust amongst its various members.

Tel : +86-21-6474-7064 | simon-wan@cornerstone-group.com

 Features To Consider For Efficient
Managing Of Boards In China

This has a deep positive influence of the local people

who are either a part of the board or the top
management positions.

Following The Hierarchy

The Chinese in general have the concept of hierarchy

deeply ingrained into their personalities. As such, they
do not trust or respect people who offer unsolicited
advice or even counter the decisions of their leaders.

Tel : +86-21-6474-7064 | simon-wan@cornerstone-group.com

 Features To Consider For Efficient
Managing Of Boards In China

According to the professionals offering the services of

CEO advisory in China, it is important for the Chinese
people to be assured that the decisions of the board
are actually the decisions of the CEO/Chairman/
President of the board.

Overlooking this important aspect can lead to the

Chinese board members becoming disillusioned about
the competence and decision-making capabilities of
the top leader.

Tel : +86-21-6474-7064 | simon-wan@cornerstone-group.com

 Features To Consider For Efficient
Managing Of Boards In China

Having A Dynamic Business Culture

Chinese people are extremely dynamic when it comes

to making business decisions and grabbing new
opportunities. However, this does not in any way mean
that they like to rush into things. Rather, the best way
of running a board of a China based organization in the
most efficient manner is to give it enough time to
consider the different aspects of a prospective
business opportunity.

Tel : +86-21-6474-7064 | simon-wan@cornerstone-group.com

 Features To Consider For Efficient
Managing Of Boards In China

The Chinese board members would expect the top

leaders to act in an acceptable manner and take things
slowly to minimize risks and avoid mistakes.

Acknowledging The Cultural Differences

The most important aspect to be considered by foreign

business establishments is that of acknowledging the
cultural differences in business operations of China and
the west.

Tel : +86-21-6474-7064 | simon-wan@cornerstone-group.com

 Features To Consider For Efficient
Managing Of Boards In China

Accepting this difference is the first step in the

direction of respecting it and winning the trust of the
local candidates, who form a part of the board. This
will surely bring the investors one step closer towards
ensuring board efficiency.

Tel : +86-21-6474-7064 | simon-wan@cornerstone-group.com