Key to success in isles
is good relationships

When asked the same question in Hawaii, executives do not downplay location. But in addition, they emphasize that successful businesses in Hawaii are based on good relationships.

One reason relationships in Hawaii are so important is that locals have interacted with many businesspeople from the mainland and from Asia. Some become permanent residents and important contributors to the quality of life in their communities. Others come to Hawaii, spend time here, move elsewhere and then stay in contact with locals and continue to do business with them. But other people come to Hawaii, become involved in the business world and then move away with no further contact. Locals sometimes use the term "seagulls" when referring to these people. Seagulls fly in, leave their droppings, and then fly away. And who has to clean up the droppings? The locals who had been dealing with these people.

A vice president of a large financial services firm came to my office and discussed a major problem he was facing. He had lived in Hawaii for five years, coming here from Arizona. His organization had designed a one-stop plan that would allow small businesses to have all their financial needs met. It would provide traditional banking, checking, investments, tax preparation, loans and so forth. But he was having trouble getting local businesspeople to give his organization serious consideration. I replied by saying that many businesspeople have long-term relationships with existing financial service institutions such as saving and loan organizations and small tax-preparation companies. These relationships sometimes go back two and three generations. Locals often have very specific memories of people with whom they have been doing business for years, such as individuals who offered loans during difficult times when no one else would offer any sort of help.

In addition, I introduced the concept of seagulls. Businesspeople in Hawaii are used to seeing people come and go, and they are wary of newcomers with great-sounding deals. Even if locals agree to do business with the financial services firm, what are the guarantees will there be that they will be working with the same people five years from now? In addition, locals are concerned that they will be seen as disloyal to longtime residents of Hawaii with whom they have done business for many years. Other ties, such as having been classmates in high school, and becoming part of ohanas through marriages, also play a big role.

Further discussion centered on the institution's image in Hawaii and perceptions of its employees. Are company managers and executives here for the long term, or will they be leaving just at the point when locals feel comfortable with them? Are employees involved in volunteer community activities? Are executives from the mainland clearly mentoring young local businesspeople whose families have lived in Hawaii for generations? Are they sensitive to local norms, such as "don't talk stink" and not saying how much better things are on the mainland.

Positive answers to these questions are likely to lead to business relationships that will benefit all parties.