Thai business, European football & culture clashes

What happens when a prominent Thai businessman takes over a British football team that is managed by a Swede? Perhaps a clash of cultures was inevitable.

Regardless of your interest in sports, there is a fascinating recent article in the Financial Times that illuminates many of the cultural differences between Thailand and northern Europe. The story specifically recounts the management issues that arose between Thaksin Shinawatra, former prime minister of Thailand and a wealthy entrepreneur who last year took over the Manchester City Football Club, and Sven-Göran Eriksson, the team’s now former manager. The article includes numerous insights for anyone who works across cultures. An excerpt:

Mr Thaksin … is fond of promoting “modern” business techniques, yet he remains steeped in Thai culture. He tends – like most Thais – to trust family, friends and old associates, above all others. So he placed loyal executives and a son and a daughter on the Manchester City board.

A boss who commands awe and respect in Thailand will also expect to be obeyed in a fashion that Mr Eriksson may have found alien. “Over the centuries, the kings of Thailand have been feared and adored. Thais have grown to expect a leader to demonstrate a blend of authoritarianism and benevolence,” writes Henry Holmes in his book Working with the Thais .

There are arguments among academics about how deferential Thais really are these days, but no one doubts that society is much more hierarchical than in the west. The nuances are complex but, crudely, traditional Thai bosses delegate less and are less inclined to discuss their plans with people outside their inner circle.

“Traditional Thai and western management practices are like night and day,” says Stuart Raj, an expert in cross-cultural management.

The Thai boss is very likely to be a rather paternal figure, who is never “off duty”. Every meeting with subordinates is, in this sense, formal. A senior Thai is expected to consult with his juniors but to have the authority, strength and wisdom to make his own decisions. On the other hand, as a father-figure, he is expected to look after his loyal staff, family and friends…

Mr Eriksson, from conspicuously egalitarian Scandanavia, may not have been comfortable as poodle, as he might have seen it. Once relations had cooled, the Swede would most likely have found himself further outside Mr Thaksin’s circle of favoured advisers and – as wins became rarer – increasingly distrusted.

Any sharp comments Mr Eriksson might have made will have been taken badly. “Thais are extremely sensitive to criticism. Everything is about relationships, so criticism becomes very wounding,” says Somjai Pakapasvivat, a Thai management expert at Chulalongkorn University.

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