Doing business in Italy

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Italy, officially known as the Italian Republic, is a peninsula located in southern Europe which extends into the Mediterranean Sea. It is surrounded by France, Switzerland, Austria and Slovenia. It also has two enclaves within its borders – San Marino and The Holy See (Vatican City). The majority of the population are Roman Catholic.

Italy’s economy comprises a developed industrial north, dominated by private companies, and a less developed, highly subsidised, agricultural south, with a legacy of unemployment and underdevelopment. The Italian economy is driven in large part by the manufacture of high-quality consumer goods produced by small and medium-sized firms, many of them family owned.

Italy is a country so diverse that most Italians claim allegiance to their specific region, city or even town before that of Italy itself. This is rooted in its history – until the late 1800s, Italy was made up of several autonomous countries. Each area in Italy boasts its own identity, whether in food, wine, fashion, tradition or landscape. Italians are usually happy to be engaged in small talk about complimenting their region. Campanilismo is a term to describe this local patriotism. It originates from the ancient rivalry between towns represented in the saying “our bell tower (campanile) is taller than yours”. People’s pride and loyalty to their locality was symbolised in the bell tower for it was generally the tallest building in the area.

One of the main characteristics of Italian culture is strong family bonds (‘la famiglia’) even though in big cities there might have been a recent change in this respect. Italian culture also places much importance on an individual’s reputation or honour. In Italy, a person’s honour is defined by the impression they leave on others – their ‘la bella figura’ (which means ‘good image’). This includes your ability to be assertive without being arrogant, how well you present yourself and your manners.

Italy is largely an Individualist culture, (‘me’ centred), especially in the big and rich cities of the North. For Italians having their own personal ideas and objectives in life is very motivating and the route to happiness is through personal fulfilment. This does vary in Southern Italy where less Individualist behaviour can be observed – the family network and socialising with the group one belongs to are important.

When introducing yourself, you are expected to use your full name. If your counterpart has not been introduced by their title, you should call them by their surname, with a generic ‘Signore’ or ‘Signora’ (Mr, Ms). When you are introduced to a group of people, remember to shake hands with everyone individually when you meet and when you leave.

Meetings start with small talk, which can be extensive. It is important to be patient and let them set the pace. Initial meetings can be quite formal, but this usually gets more relaxed as the relationship develops. Meetings in Italy may appear somewhat chaotic, with frequent interruptions and several parallel conversations. Do not take this personally; it does not indicate a lack of interest.

It is easy to perceive Italian organisations as undisciplined as the focus on their planning is not always instantly identifiable. However, recognise that their method – though perhaps unclear to you – does indeed work. Italians generally perform very well in what they do – after all Italy has the ninth-highest GDP of any country in the world.

Italians can be very competitive, so it is not uncommon that colleagues are often competing with each other. Competition among employees is perceived as a good thing in Italy and stimulates productivity.

Managing in Italy may require a completely different approach in terms of dealing with your Italian team. For example, a horizontal chain of authority is employed, called a “la cordata”, which translates to a team of mountain climbers on the same rope. Whilst everyone is usually given the opportunity to speak during meetings, the credit for decisions is almost always given to the person with the highest status. Exchanging information, negotiating and making decisions can take considerable time. Throughout your interactions do not attempt to rush or put pressure on the decision-makers as this is an affront to Italian business protocol.

It is more important to build a personal relationship with every counterpart so that you keep them happy and motivated. You have to make sure that they feel that they are appreciated at work. Maintain this network of relationships and strong ties of personal loyalty and respect. Power and influence is more likely to be defined by who you know and who is 'keeping you in the loop’.

Italians can often speak passionately and loudly. They enjoy eloquent and heated discussions and can often interrupt each other. It’s crucial you never appear impatient or express your frustration at the risk of hurting someone’s pride. Communication might not always be straight-forward and you may have to read between the lines to understand what is being conveyed. Humour will be appreciated as long as it is not sarcastic or cynical. They appreciate constructive criticism if it’s made in a respectful manner.