“No news is NOT always good news”
This is the title of a slide I like to include in my offshoring presentations.
It’s a reversal of the old British saying “no news is good news." A phrase with the idea that if no news is received, nothing bad has happened, so assume everything is fine. But assuming everything is fine can be a trap when working with offshore teams.
I've learned that Filipinos are respectful, loyal, and supportive. But on the flipside, there’s a reluctance to speak up and talk straight – a cultural way of deferring to authority figures that is common in Asian cultures. Sort of like “the boss knows best."
I've discussed it with them many times. It runs through their families... 'Respect your elders.' And it equally presents in the workplace... “Don't question the boss.”
Consider the airline industry.
Failure to talk straight by copilots to their pilots has resulted in plane crashes. Like the 2013 Asiana Airlines Flight 214, which crashed in San Francisco. Three people died and 181 got injured. The 1997 Korean Air Flight 801, which crashed in Guam, resulted in 228 fatalities.
Accounting work isn’t life or death, but applying “no news is good news” to your offshore team leads to problems.
I've spoken to frustrated accounting partners who claimed the "offshore model doesn't work". They might have just onboarded a new staff member, delegated an easy' job. The job should have taken 30 minutes. But, after 4 hours with no update, they checked in. No progress had been made.
The unfortunate staff member had been stuck the whole time. On a zoom call, they had been head-nodding to the partner. As if they understood. But afterwards they couldn't work it out and were too scared to speak up.
Sometimes Filipino staff also assume "no news is good news." Like the boss knows what they are doing, and if I don’t hear from them that means everything must be fine.
Talk about the potential to create a real cluster!
Researchers have named this concept Power Distance.
What is power distance?
Cultural psychologist Geert Hofstede termed power distance in a study. He analysed workplace behaviours across cultures. Power distance describes how members of an organization accept and expect unequal power. In simpler terms, it is how comfortable people are with workplace hierarchy and authority.
Western Cultures and Power Distance
In many western workplaces, power distance tends to be low. Good leadership involves approachability, where employees feel safe to voice opinions, ask questions, and challenge ideas, regardless of rank. Teams value collaboration and flat structures.
Filipino Culture and Power Distance
In contrast, the Philippines has a high-power distance culture. People respect hierarchy and often defer to authority figures. Employees may hesitate to ask questions or offer differing opinions. They may see it as disrespectful or a challenge to authority.
This deference is deeply rooted in Filipino values like pakikisama (harmony) and hiya (avoiding shame). These emphasize maintaining good relationships and avoiding conflict. (I checked this last line with my EA, and she strongly agreed!)
How do we overcome power distance problems?
1. Staff should explain it back in their own words.
When giving instructions, don’t accept “Yes, sir” or “Yes, Ma'am”. We call this “head-nodding behaviour”. Always follow up with, “Okay, explain it back to me in your own words.” This could be uncomfortable for the staff, but there’s a divide we’re bridging here… a little discomfort is part of it.
2. Build relationships.
Aim to bridge the hierarchical divide by building relationship. That also might make staff uncomfortable. If they expect coldness from a boss, then they may find it unfamiliar when a boss treats them like a normal human. It shouldn't take long to overcome this. Ask them about their weekend, family, or hobbies. Get them talking and interacting whenever you have a chance.
3. Staying quiet isn’t an option.
Don’t accept not speaking up. If a copilot sees a problem, it's unacceptable to say nothing. Again, it might be uncomfortable for the staff, but they simply must get used to it.
All this is hardest for those who are new to offshoring. Over time, your staff will get the Western approach more. And they often enjoy the direct access to someone ‘higher up the ladder' to learn from.
Final Thoughts: A Meeting of Cultures
Offshoring is more than expanding your team. It's about merging two cultures into a high-performing unit. Understanding power distance is key to working cross culture with Filipinos. It helps you build stronger relationships and improve communication. It also ensures the arrangement works.
At the end of the day, cultural differences are not obstacles but opportunities. When the obstacles are overcome, both sides win!
Want to learn more about building effective offshore teams? Check out our book Offshore or Die, to find more tips, tools, and strategies for offshoring success read more articles here.
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