10/31/2011

Building Systems Before JVs in Korea to Build Trust between Partners

A blog referred to me by the China Law Blog has a wonderful post on Developing Trust in China by Building Trustworthy Systems/Processes.

The same advice given in this blog post is relevant to work done in Korea, Southeast Asia, China and even the West.

The value of building systems is not to be underestimated. Asians, in most respects, are wonderful at performing tasks that are well dictated and explained. While in the West we often more autonomy oriented and don't strive when systems are mandated. In the East, partners often want and expect ordered guidance.

My Firm often works with business consultants to assist client in implementing systems that reward following these systems/processes. These “systems” are, often, incorporated by reference into our joint venture, OEM and other agreements in Korea.

Don’t jump into a relationship before considering the development of verification, quality assurance, logistic and like systems.

The article from the All Roads Lead to China Blog notes emphatically that:

Systems that can, regardless of human ignorance, greed, inaction, confusion or incompetence, remove the downside risks that comes with the human element of any process. Systems that at the heart of it, are established to minimize human impact, alert system operators (buyers/ clients) of a failure, and provide the data necessary to make changes to the system (human or mechanical). For me this is a system, as basic as it is, that allows for the most protection for a firm who is engaging with any external party, and in a way where “trust” isn’t an issue.
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SeanHayes@ipglegal.com