Obstacles to Successful English-Language Policies

Globalization of tasks and resources.

Competitive pressure.

If you want to buy or sell, you have to be able to communicate with a diverse range of customers, suppliers, and other business partners. If you’re lucky, they’ll share your native language—but you can’t count on it. Companies that fail to devise a language strategy are essentially limiting their growth opportunities to the markets where their language is spoken, clearly putting themselves at a disadvantage to competitors that have adopted English-only policies

Language differences can cause a bottleneck—a Tower of Babel, as it were—when geographically dispersed employees have to work together to meet corporate goals. An employee from Belgium may need input from an enterprise in Beirut or Mexico. Without common ground, communication will suffer. Better language comprehension gives employees more firsthand information, which is vital to good decision making. Swiss food giant Nestlé saw great efficiency improvements in purchasing and hiring thanks to its enforcement of English as a company standard.

M&A integration across national boundaries.

Negotiations regarding a merger or acquisition are complicated enough when everybody speaks the same language. But when they don’t, nuances are easily lost, even in simple e-mail exchanges. Also, cross-cultural integration is notoriously tricky; that’s why when Germany’s Hoechst and France’s Rhône-Poulenc merged in 1998 to create Aventis, the fifth largest worldwide pharmaceutical company, the new firm chose English as its operating language over French or German to avoid playing favorites. A branding element can also come into play. In the 1990s, a relatively unknown, midsize Italian appliance maker, Merloni, adopted English to further its international image, which gave it an edge when acquiring Russian and British companies.

The fastest-spreading language in human history, English is spoken at a useful level by some 1.75 billion people worldwide—that’s one in every four of us.

To be sure, one-language policies can have repercussions that decrease efficiency. Evidence from my research at Rakuten—along with a study I conducted with Pamela Hinds of Stanford University and Catherine Cramton of George Mason University at a company I’ll call GlobalTech and a study I conducted at a firm I’ll call FrenchCo—reveals costs that global English-language rules can create. Proper rollout mitigates the risks, but even well-considered plans can encounter pitfalls. Here are some of the most common.

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