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    Causes and Consequencesof Cultural ChangeA GBN WorldView Meeting Report

    GBNGlobal Business a member of

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    WorldView Members& Guests

    Heather Ainsworth

    Kodak

    Nancy Bambic

    DuPont

    Erika BrockhouseCoca-Cola

    Dionne Colvin

    Toyota

    Christian Crews

    The Waitt Family Foundation

    Todd Egeland

    CIA

    Nicole Gilbert

    Nissan North America

    Anne Messbarger

    CHRISTUS Health

    Marcia Daley

    Herman Miller

    Stan Rosen

    Boeing

    Gary Wright

    Proctor & Gamble

    Jennifer Wright

    Nissan North America

    Network

    Mary Catherine Bateson

    anthropologist

    Betty Sue Flowers

    poet & educator

    Joel Garreau

    journalist

    J.C. Herz

    online & interactive media expert

    Van Jones

    community activist

    Chris Riley

    brand strategist

    Alex Singer

    film & tv director

    GBN

    Lynn Carruthers

    Napier Collyns

    Eamonn Kelly

    Sophia Liang

    Jay Ogilvy

    Diana Scearce

    Erik Smith

    Causes and Consequences of Cultural Change A GBN WorldView Meeting Report GBN Global Business Network 2003

    The Meeting Agenda

    Monday December 9

    Welcome Reception & Dinner

    Defining Culture and Cultural Change . . . . . . . . . . . . . . . . . .3

    Signposts of Cultural Change: A Hollywood Perspective . . . . .7

    Tuesday December 10

    Causes and Stories of Cultural Change . . . . . . . . . . . . . . . .9

    Creating Scenarios of Cultural Change to 2015 . . . . . . . . .13

    Consequences and Implications of Cultural Change . . . . . . .23

    Who Was There?

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    Causes and Consequences of Cultural Change A GBN WorldView Meeting Report GBN Global Business Network 2003

    SETTING THE CONTEXT

    Defining Culture

    Our first step towards a better understanding of the causes

    and consequences of cultural change was to define what we

    were talking about. Arrayed around the border of the box are

    definitions drawn from academic textbooksthey are compre-

    hensive, valid, and, quite frankly, dry. So at the start of the

    meeting, the participants offered their own perspectives on

    what culture means to them. Some of these definitions aligned

    closely with the academic ones, others were more personal

    and visceral.

    What would you write?

    to think like a human being is to think in terms

    of stories, and I tell my students that they can set

    aside all the fancy definitions of culture they mayhave learned in anthropology or the humanities

    and think of culture simply as those stories that

    we tell one another to make sense of our lives.

    Jay Mechling,

    Professor of American Studies,

    University of California, Davis

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    Causes and Consequences of Cultural Change A GBN WorldView Meeting Report GBN Global Business Network 2003

    Picturing Cultural Change

    The term culture is slip-pery: we all experience it

    everyday in extremely per-

    sonal ways, yet it is difficult

    to capture in words. As par-

    ticipants explained I cant

    describe it, but I sure know

    it when I see it! Others

    noted that often knowing

    culture is much easier

    once youve gotten out of

    your own and have spent

    time in another. Since

    changes over time are eas-

    ier to identify, we invited the

    participants to bring and

    post some images that rep-

    resent specific changes inculture.

    What images capture the

    idea of cultural change

    for you?

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    Each participant found one of these question cards beneath

    their dinner plate. To guide conversation, we asked partici-

    pants to answer their own question and then respond to tho

    of others at the table.

    How would you answer? What have been your

    experiences of cultural change?

    Causes and Consequences of Cultural Change A GBN WorldView Meeting Report GBN Global Business Network 2003

    Initial Questions

    How have you

    detected culturalchange?

    How has your

    organization effectivelyrespondedor not

    to cultural shifts?

    What is an important

    source of cultural

    change that yourorganization is not

    paying attention to?

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    Not surprisingly, these conversations wereboth animated and wide-ranging. Each table

    shared highlights of their dinner conversa-

    tions, and some major issues emerged:

    the difference in culture between for-profit

    and not-for-profit work environments

    the place of the individual and the group

    in different cultures

    the importance of the cultural relationship

    between the U.S. and other parts of the

    world, and

    the necessity of forgetting as a step in

    the cycle of cultural change, i.e., one must

    forget in order to changea positiveamnesia.

    Several of these themes would echo through-

    out the meeting.

    Causes and Consequences of Cultural Change A GBN WorldView Meeting Report GBN Global Business Network 2003

    Some Revelations

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    Being in Los Angeles, what could be more appropriate tha

    an opening presentation by Alex Singer on the role of ente

    tainment, media, and cultural change. A member of both

    the Academy of Motion Picture Arts & Sciences and the

    Academy of Television Arts & Sciences, Alex has been a

    GBN Network member for 15 years. In his presentation, h

    tracked several dimensions of cultural change using film

    clips from four countries.

    Women, Men, and Sex

    1937 It Happened One Night

    1991 Jungle Fever

    2002 Y Tu Mam Tambin

    Humanity, Technology, and Cultural Icons

    1968 2001: A Space Odyssey

    Control and Manipulation of Time

    1999 Run Lola Run

    2000 TimeCode

    2001 Memento

    2002 What Time Is It There?

    Causes and Consequences of Cultural Change A GBN WorldView Meeting Report GBN Global Business Network 2003

    Film and Cultural Change

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    Signposts of Cultural Change

    Alex kicked off the presentationwith a sure way to get an audience

    attention: sex. He moved from a

    risqu scene in 1937 showing

    Clark Gable without an undershirt,

    to an interracial affair, to a nearly

    comicalyet graphicscene of

    afternoon sex between two teen-

    agers. Films separated by nearly70 years highlight and reflect the

    massive cultural change that has

    happened in this arena. What will

    shock us next?

    The second themehumanitys

    relationship with technologyis

    seen in 2001: A Space Odyssey.This also raises questions about

    the iconic and mythic nature of

    some films: Are they doing more

    than simply reflecting cultural

    change? Do they show the way

    ahead?

    The final theme revolves aroundtime, and our relationship to it

    something that Alex considers a

    central issue we are grappling with

    today: Are we not enslaved by time

    Can we be in charge of it? How

    malleable is it?

    What films would you haveselected? Why?`

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    Causes and Consequences of Cultural Change A GBN WorldView Meeting Report GBN Global Business Network 2003

    STORIES OF CULTURAL CHANGE

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    Causes and Consequences of Cultural Change A GBN WorldView Meeting Report GBN Global Business Network 2003

    More Stories of Cultural Change

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    Causes and Consequences of Cultural Change: A GBN WorldView Meeting Report GBN Global Business Network 2003

    SCENARIOS ON THE FUTURE OF CULTURAL CHANGE TO 2015

    Predetermined & Uncertain Forces

    Votes Predetermined

    12 Current value systems that are driving most global corporations render them

    incapable of contending with these issues of cultural change

    9 Aging population

    6 Importance of China

    6 Importance of India

    5 Increasing levels of connectedness

    5 Identity determined by more than age

    4 More & more urbanization

    3 More & more myths & conspiracy theories & widespread belief in them

    3 Increasing diversity

    3 Global warming, and other global problems

    2 Continued growth & expansion of networks: both formal & informal

    0 Religious diversity

    0 Acceptance of authority and hierarchies (esp. by Millennial Generation)

    0 Neurosis is perennial

    0 Economic globalization

    0 Technology & communication will continue to make the world a smaller place

    0 American hegemony

    0 A more painful world in 15 years

    Starting from these provocative ideas and insights about causes and consequences of cultural

    change, we brainstormed forcesuncertain and predeterminedthat would drive cultural

    change between now and 2015. Uncertainties are exactly that: dependent upon other forces,

    they could play out in a variety of ways. Predetermineds are deep trends, probably already evi-

    dent today, that will play out in a relatively certain way. After the brainstorm, we voted on which

    forces of cultural change would be most relevant for business. All of the uncertainties and pre-

    determineds are listed here, along with the votes each received.

    What would you add to these lists?

    Which do you think are most relevant to business?

    Which ones would you vote for as most relevant to the way your organization relates

    to and handles cultural change?

    One participant asked an interesting question that received a high number of votes: What is

    beauty? The question is too open-ended to be easily framed as an uncertainty, yet it resonated

    extremely well with everyone in the room because it got at both the subjective and normative

    aspects of culture while also capturing the aesthetic element. So we set it aside to ask later

    when we thought through the implications of each scenario world.

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    Causes and Consequences of Cultural Change A GBN WorldView Meeting Report GBN Global Business Network 2003

    Votes Uncertainty

    12 Techno-centric vs. human-centric expansion of technology

    12 Top-down vs. bottom-up leadership

    10 Reconfiguration of generational pattern, i.e., relationship between age and

    authority

    10 Global governance or global markets?

    11 What is beautiful?

    10 Interactions between hierarchies & networks

    10 Cultural hegemony vs. cultural diversity

    9 Centralized vs. decentralized technology

    7 Increasing friction between American hegemony and a European model, esp.

    related to leadership

    6 Will there be change in incentive programs of businesses to take cultural change

    into account?

    5 Reliance on fossil fuels vs. alternative sources of energy

    5 Nature vs. nurture assumptions

    4 Will growing Circle of Empathy continue, or will it be a U.S. vs. Them globalization?

    4 What are we willing to go to war for?

    4 Strengthening of special interest groups as agents of social change, or weakeningof national American government as resource for social change

    3 Development of strong global or international institutions

    2 Cyberculture: how it defines itself? what it means?

    Votes Uncertainty

    2 Where will the locus of the voluntary choice be: individual, group, state, world?

    2 Does increased connectedness make people more or less responsible?

    2 What happens when there is no meta-narrative?

    2 Working at for profits vs. working at not-for-profits, esp. motivation

    2 How fast technologies, particularly biotechnologies, come along

    1 And is there pushback to new biotechnologies?

    1 Continuing American cultural hegemony

    1 How necessary will experience in virtual world be for leadership?

    1 Meta vs. individual narrative: how does it influence behavior?

    1 Will it be the voluntary or the involuntary future? And what is the metric?

    0 Optimistic or pessimistic world?

    0 How much shared experience do we have?

    0 TOE: Theory of everything

    0 Degree of & response to globalization

    0 Do we like the future or not? Does the world feel good? Who is having fun?

    0 Will a religious revival show up?

    0 Stronger social institutions developing, or not

    0 How we define culture, identity, connectedness

    0 Will we engage some of the disenfranchised?

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    Interplay betweenHumanity and Technology

    Nature of Globalization

    Sources of Leadership,Change and Innovation

    Relationship of Corporationsto Cultural Change

    The Technology Axis captures the relationship between te

    nological developments and the dominant understanding of

    human beings, i.e., how we learn, how we realize potential. A

    one end is the view that people grow through a combination

    of nature and nurture, where breakthroughs in technology

    are fewer, and perhaps less welcome. At the other end is th

    view that people are essentially determined by their biology,

    and that this caneven shouldchange through technology

    The Globalization Axis focuses on the cultural side of

    globalizationwill U.S. domination move beyond military to

    cultural hegemony? Or will cultural diversity flourish around t

    world?

    The Innovation Axis lays out one of the fundamental ten-

    sions of change: where and how it originates. At one end is

    the classic command and control hierarchy with innovation

    and leadership flowing down from the top. At the other end

    is a more flexible and distributed model of change, with inno

    vation and leadership emerging from the bottom.

    The Corporation Axis forms the crux of the cultural lens:

    whether corporations play more of a leadership role in cultu

    change, or if they find themselves more often than not follow

    ing cultural change.

    Causes and Consequences of Cultural Change A GBN WorldView Meeting Report GBN Global Business Network 2003

    Axes of Uncertainty

    nature2:biotech determinism

    global markets:U.S. cultural hegemony

    bottom-up & networked

    follow

    nature + nurture

    global governance:more cultural diversity

    top-down & hierarchical

    lead

    The next step in developing a set of scenarios was to create axes that expressed particular dimensions of uncertainty about the

    future. We clustered uncertainties and a few predetermineds that received high numbers of votes and that were similar in content

    into the axes below. Many different axes of uncertainty could be created from the list above, and those below reflect the most

    compelling themes that surfaced in our brainstorm conversation.

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    Causes and Consequences of Cultural Change A GBN WorldView Meeting Report GBN Global Business Network 2003

    The

    ScenarioMatrix

    Learning World

    nature + nurture

    nature2: biotech determinism

    lefollow

    Evangelical Corporation

    Bio-CyberPunk GATTACA

    After discussing several pos-

    sibilities, the group decided

    that combining the first and

    fourth axes into this matrix

    would make for the most rel-

    evant and interesting set of

    scenarios. Small groups

    then developed each sce-

    nario more fully. The tem-

    plates with the original data

    are shown on pages 1922.

    After the meeting, and withtime for some more reflec-

    tion, GBN made a few addi-

    tional refinements to the

    scenarios in order to make

    the set more divergent, chal-

    lenging, and relevant.Interplaybetween

    Humanityand

    Technology

    Relationship of Corporations to Cultural Change

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    Causes and Consequences of Cultural Change A GBN WorldView Meeting Report GBN Global Business Network 2003

    Implications

    of theScenariosfor Businessand for

    Beauty

    Learning World

    Implications for Business

    Command and control style meets with difficulty here. Open-source becomes

    an important metaphor for how work gets done, and most projects are

    accomplished through a Hollywood ad-hoc production style.

    In this scenario, beauty isdiversity, a mix & match collage, energetic

    creativity, connectivity.

    Evangelical Corporation

    Implications for Business

    A clear sense of organizational values is absolutely necessary to attract

    both talent and customers. Customers are more demanding on more fron

    Product packaging is extremely importantthe product is a whole lifestyle

    not simply an item. Teamwork is emphasized, somewhat like corporate cu

    ture in Japan.

    In this scenario, beauty isin the eye of the employee. An individual se

    tion of enhancements, both biotech and developed through personal effort.

    Bio-CyberPunk

    Implications for Business

    Corporate opportunism and flexibility is key. Keeping options open as long

    as possible. Speed to market is critical. Markets are more fragmented and

    product lifecycles faster. Capability to rapidly prototype is very important.

    In this scenario, beauty isindividually interpreted biotech enhancements.

    They can be home-made or bought. No universal agreement: a lot of creativ-

    ity, though not always for the better.

    GATTACA

    Implications for Business

    Brands remain very strong. The dominant aesthetic is well-defined and

    nearly monolithic. And customers want the image. Individuals surrender

    themselves to the well-oiled, efficient organizational machine. Hierarchicrigid. Yet there is a sense of underlying instability and fragilitysecurity

    a major concern.

    In this scenario, beauty ispurchased. Bio-engineered perfection

    enabled by elegant code.

    nature + nurture

    nature2: biotech determinism

    lefollow

    Interplaybetween

    Humanityand

    Technology

    Relationship of Corporations to Cultural Change

    The point of creating scenar-

    ios is not just to tell interest-

    ing stories about the future.

    The point is to tell stories

    that can be used to talk

    clearly about the implica-tions of each world, to think

    about what organizations

    would do to survive in each

    world, and to provoke a con-

    versation about strategies

    that businesses could use to

    thrive in each world. To get

    our heads further into eachscenario world, we returned

    to the unexpected question

    that came out during our

    earlier brainstorm: What is

    beauty?

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    The axis endpoints are c

    porations leading cultura

    change and an interplay

    humanity and technology

    characterized by a natur

    + nurture understanding

    of people.

    * These are reproductions of the

    actual scenario templates com-

    pleted by the participants at the

    meeting.

    Causes and Consequences of Cultural Change A GBN WorldView Meeting Report GBN Global Business Network 2003

    Scenario Templates*

    Evangelical Corporation

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    Causes and Consequences of Cultural Change: A GBN WorldView Meeting Report GBN Global Business Network 2003

    GATTACA

    The axis endpoints are coporations leading cultura

    change and an interplay o

    humanity and technology

    characterized by a nature

    i.e., bio-deterministic,

    understanding of people.

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    Causes and Consequences of Cultural Change A GBN WorldView Meeting Report GBN Global Business Network 2003

    Bio-Cyberpunk

    The axis endpoints are co

    porations following cultu

    change and an interplay o

    humanity and technology

    characterized by a natur

    i.e., bio-deterministic,

    understanding of people.

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    The axis endpoints are cporations following cul-

    tural change and an inter

    play of humanity and tec

    nology characterized by

    nature + nurture under

    standing of people.

    Causes and Consequences of Cultural Change A GBN WorldView Meeting Report GBN Global Business Network 2003

    Learning World

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    Causes and Consequences of Cultural Change: A GBN WorldView Meeting Report GBN Global Business Network 2003

    CONSEQUENCES AND IMPLICATIONS

    What Would Armani Do?

    GBN Network Member Chris Riley, founder of Studio Riley, played a unique role

    at this meeting. Drawing upon a decade as head of strategic planning at the

    brand and advertising agency Weiden+ Kennedy, Chris was charged with act-

    ing as an implications provocateur to focus the groups attention on the so

    what aspect of cultural change. He began by observing how the conversation

    at GBN has changed in the last decadefrom one where economics and tech-

    nology dominated, to one where culture has moved far up the agenda. Its a

    more difficult conversationbecause issues of cultural change open a door

    into everythingyet understanding and insight into culture and values are

    more and more important. Chris has a clear point-of-view:

    I believe that culture is ideas, the way we live, the humanity of our world.

    Economics and technology are mechanics. But culture is about people,

    about the way we feel, the way we think, the attitudes we adopt. And that

    infiltrates every single aspect of what we do. So if youre in business, cul-

    ture affects every single action of the business: baked-in assumptions,

    ideals, beliefs, personal contextall affecting the work you do.

    Chris turned to our four scenarios with an unusual example to illustrate implica-

    tions for business: What would Giorgio Armani do in each world? This brand is

    fundamentally about cultureelegant, sophisticated tailoring in Milan, Italyso

    Chris sees Giorgio doing well in worlds where corporations lead cultural

    change, especially in the Evangelical Corporation where the nurture idea

    plays. In GATTACA, Giorgio takes advantage of biotech advances by offering

    a line of Armani Enhancements. On the left side of the matrix though, the

    brand runs into difficulty because the corporation is reacting to cultural

    change. In Bio-Cyberpunk, customers create their own image of Armani,while Learning World is a crisis for the brand.

    In closing, Chris posed three questions for finding business implications of

    cultural change: from a cultural point of view, how does your company learn?

    Formally and at a distance? Without relationships? Or through close relation-

    ships? Secondly, how do you communicate your product, your brand, your

    company? And finally, how does your company relate to other human beings

    in the world, and how do you relate to people in your organizations?

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    Causes and Consequences of Cultural Change: A GBN WorldView Meeting Report GBN Global Business Network 2003

    Acknowledgements

    Eamonn KellyDiana Scearce

    Erik Smith

    WorldView Meeting Directors

    Sophia Liang

    Meeting and Report Producer

    Erik SmithReport Author

    Lynn Carruthers

    Visual Recorder

    Nancy Murphy

    Editor

    Kelly Kaufman

    Designer

    2003 Global Business Network. This publication is for the exclusive use of Global Business Network members. To request permission to reproduce, store in a retrieval system, or transmit this document in any

    form or by any means, electronic, mechanical, recorded, or otherwise, please contact Global Business Network.

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