Contrasting US-UK Business Culture

Despite a 5 to 8-hour time difference, the US is the UK’s largest export market. No doubt this is largely attributable to the shear size of the US market. But it is also a function of a similar language and familiar business culture.

Despite the similarities, there are subtle distinctions in both areas of which UK companies doing business in the US should be aware. These include:

• Language. In 1887 Oscar Wilde wrote, “We have really everything in common with America nowadays, except, of course, language.” In truth, the language barrier is usually overstated. However, there are many terms used in the UK that are not used in the US, and vice versa. Indeed, some terms mean the exact opposite. To “table” a matter in the US means to postpone discussion of it. In the UK, it means to put it up for immediate discussion. UK companies marketing to US consumers need to be particularly careful to use language familiar to their customers.
• Communication Style. Cross-cultural studies and intercultural communication research distinguish between “low-context” and “high-context” cultures. People in low-context cultures communicate more explicitly, focusing on the words expressed instead of the context in which they are spoken. Both the US and the UK are low-context cultures. However, studies confirm that the US is more low-context than the UK. In other words, Americans are somewhat more direct in their communication styles, with greater emphasis on clarity and conciseness, even at the risk of being impolite.
• Hierarchical Structures. The US is widely perceived to have a more egalitarian approach to business. Employees often have direct access to their superiors and address them on a first-name basis. UK businesses traditionally have a more defined hierarchical structure. Although the UK workplace is evolving, there is still a greater level of formality and respect for titles and positions.
• Risk Tolerance. Silicon Valley’s informal motto is “Fail fast, fail often.” US businesses generally have a much higher level of tolerance for risk than in the UK, where businesses take a more cautious approach. Different attitudes towards risk are reflected in US bankruptcy laws, which often allow companies to reorganize while operating, in contrast to the UK’s more punitive insolvency procedures.

These of course are just generalizations. In addition, regional variations exist within each country. However, having a clear understanding of the subtle differences in business culture can better prepare UK companies for the challenges of entering and succeeding in the US market.