When I was first approached by the editor of this Handbook to write an article on the cultural and business differences between the US and the UK, my immediate reaction was to reflect on the commonality in the business environment rather than the differences. This reaction may be because I have seen a significant narrowing of the differences over the course of my career.

I started my current UK assignment in May 2002. However, this is my second stint working in the UK. Back in the late 1980s I worked in London for a major international insurance broker for several years. I now work for the insurance and financial services giant, American International Group Inc (AIG) – a company that, interestingly, recently appointed a Brit, Martin Sullivan, as its Chief Executive Officer. So I guess it’s fair to say that I am a legitimate representative of the “transatlantic manager” working for a truly transatlantic organisation.

Boy, did London change in the 15 years I was away!

In my view, London in the 1980s was a great English city. It has been transformed into a world-class global capital and, arguably, the finest city in the world. I cannot think of one facet of life in London – transportation, multi-culturalism, restaurants, shopping, cultural attractions, customer service, housing – which is not better than 15 years ago. Even the coffee is better.
It may be far more expensive than the States, but, in my opinion, it’s worth it. My Yankee brethren and I can still only hope (probably in vain) for a strengthening dollar.

As a consumer, I see a marked change in the UK today as compared to the 1980s. UK companies are increasingly putting customers at the heart of their operations and striving for service excellence. I admit that the typical London retailer is not in the same “no quibble returns” and “low price guarantee” league of US retailers, but they are moving in this direction and their margins are probably better and more sustainable.

The business culture has changed, as well. The UK is figuratively a gateway, a midpoint so to speak, between Europe and the US.
It is true that London does not have quite the aggressive capitalism of my hometown of New York, but it certainly has a similar work ethic. I am an early riser and it is interesting for me to see the city bustling at 7.30 in the morning (and 7.30 in the evening, too). On your next visit to New York, try arranging your business dinners for a 7.30 or 8.00pm start – bring a magazine since you will surely be dining alone!

The UK business environment is open, striving, and investing for future success. Unlike our continental European cousins, there is little talk about a 35-hour work week and the need for increased social protections.
Having said this, UK employers cringe at the abruptness and the potential abuses inherent in American “at will” employment norms. In the UK, employment legislation gives employees far more protection and rights. The UK approach is grounded in a sense of fair play and I believe UK employment legislation is a reflection of the culture and, therefore, widely supported by employers as well as employees. This will be an interesting area to watch as more encompassing EU employment rules become the law of the land.

In recent years, we have seen significant moves towards the adoption of international accounting standards and enhanced corporate governance initiatives. One of the more significant regulatory shifts followed the introduction of the Sarbanes Oxley Act. This Act directly affects UK plcs that have a US listing and, like it or loathe it, it is undoubtedly influencing Corporate Governance documentation and methodology across Europe.

There is little doubt the two business cultures are moving closer every year. Even so, companies wanting to work on both sides of the Atlantic are faced with the need to understand and implement a raft of accounting regulations, tax laws, regulatory issues and employment laws.

BABi itself is highly effective in assisting companies operating in the transatlantic arena by leveraging the diverse business capabilities of its membership.