Operating a joint venture with a foreign partner requires time, resources, and cross-cultural skills. Cultural intelligence, strategic thinking and a jointly prepared business plan can be the prescription to avoiding errors in cross-cultural projects.




As your joint venture has to compete in its market for people, customers and capital, its human resource, pricing, service, financial and other policies must be tuned to that market. "The resources you place under the control of JV should be only those that are unique to it needs. To minimize costs, all else should be drawn from your firms or bought from outside," says Jordan D. Lewis, the author of Trusted Partners.




It is often tempting to take short cuts because of resources constraints and the need for speed. Nevertheless, if you wish to minimize the risks inherent in an international joint venture, you must manage the processes with great care. And never fail to do a diligence research on your prospective foreign partner.