The Benefits of Cross Cultural Competency

CULTURAL HARMONY: WORKING IN A MULTI-CULTURAL COMPANY 1

©2017 ITAP International, Inc. All Rights Reserved.

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The Benefits of Cross-Cultural Competency




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Why is learning about Culture Important?

• There are different expectations and conventions around

the need for information taking initiative working in teams...



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Effectiveness is Culturally Framed

You need to:– Know how others may perceive you/your

approaches – Be sensitive to the differences between

your values, attitudes, beliefs and behaviors, and those of others

– Know how these differences might impact your effectiveness



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Scenario: Integrating Retail Operations

• Robert Anderson is a Senior Manager for a retail chain with operations in North America and Western Europe

• The company is expanding into several Eastern European countries, and Mr. Anderson has been assigned to work under Andrej Cernak, the VP of Operational Integration for Eastern Europe



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• During their meeting, Mr. Cernak describes the implementation plan and Mr. Anderson's responsibilities as well as the role he is expected to play

• Mr. Anderson expresses his enthusiasm for this opportunity – he calls it a fun adventure – and tells Mr. Cernak that he is optimistic about the chances for success

• Mr. Anderson assures Mr. Cernak, “It’ll be great fun working with everyone on this challenge!”



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• Mr. Cernak explains to Mr. Anderson that he may need to be cautious and reticent in his interactions with his new colleagues, in order to establish his credibility and let them see that he is a serious professional

• Mr. Anderson is quite taken aback by Mr. Cernak's remarks and replies to Mr. Cernak that if everyone approaches this with a positive attitude, the integration roll out will be successful



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• After the meeting ends, both men are quite concerned as to whether this assignment can be successfully completed



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Debrief: Managing Interactions Across-Cultures

• What may be considered “best practice” in one culture may be ineffective, or counter-productive, in another

Robert Anderson smiles. But his expression of optimism is NOT effective



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Debrief: Style Switching

• What we do/say might strengthen or weaken our ability to effectively work with, lead, sell to, influence, and motivate others

• To work more effectively with Andrej Cernak, Robert Anderson should consider changing his behavioral style

• Changing one’s behavior to align with the preferences of others is called “style switching”



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Style Switching

• Style switching is an aspect of intercultural competence, of working effectively across cultures

Geert Hofstede:“…intercultural competence starts with

awareness … recognition that one carries a particular mental software”



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The Lens of Culture

One can describe culture as an iceberg:

•There is a lot you can not see

•It can be difficult and dangerous

•There is more to it than meets the eye



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What is Visible (above the line)Cultural signs and symbols -

language, food, clothing, art, architecture, music, behaviors

What is Beneath the surface1. Our upbringing impacts our

assumptions and values2. Behaviors are shaped by our

values

Culture as an Iceberg



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Gaining Intercultural Competence

To develop his cross cultural competence, Robert Anderson would need to:•Be open to and interested in differences•Build his cultural knowledge•Avoid stereotyping•Withhold assumptions•Remember the needs and preferences of his audience or listener•Express himself clearly (use concise language, enunciate words, limit the use of slang and jargon)



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Learning about Culture: The Time-Consuming Way

• Cultural anthropologists provide deep knowledge about culture as a system of meaning (mostly qualitative research)



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Learning about Culture: The Time-Efficient Way

• Using surveys to discover correlations and differences* (Quantitative approach)

• In Hofstede’s framework, cultural values are organized along six dimensions– Each dimension is a continuum

– At each end of a continuum is a distinct value orientation

*Helga Nowotny, The Cunning of Uncertainty



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Hofstede’s Comparative Framework

• Initially based on employees of IBM subsidiaries in 40 countries around 1970

• Extended to 76 countries and regions• So far, 6 major research programs replicated

the framework (elites, employees of other corporations, airline pilots, consumers, civil servants)

• Hundreds of others replicates one of more dimensions and their orientations

Source: Hofstede webinar to ITAP International



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Hofstede’s Comparative Framework

• Scores show a country’s position on each dimension relative to other countries See: www.hofstede-

insights.com/product/compare-countries/• Results are very stable – even as cultures

shift, they shift together so relative country scores remain valid

Source: Hofstede webinar to ITAP International



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1. Individualism (Individual or Group Orientation) - the degree to which action is taken for the benefit of the individual or the benefit of the group

2. Power Distance (Hierarchical or Participative Orientation) - the extent to which the less powerful expect and accept that power is distributed unequally

3. Certainty (Need for Certainty or Tolerance for Ambiguity) - the extent to which people prefer rules, regulations and controls, or are comfortable with ambiguity

Which Hofstede Dimensions Are Relevant for Robert Anderson?



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4. Achievement (Achievement or Quality of Life Orientation) - the degree to which we focus on goal achievement and work, or quality of life and caring for others

5. Time Orientation (Long- or Short-term Orientation) - the fostering of virtues that promote a long-term (perseverance and thrift), or short-term time horizon (preserving present benefits)

6. Indulgence (Indulgence or Restraint) - the tendency to allow relatively free gratification or the conviction that such gratification needs to be curbed

Which Hofstede Dimensions Are Relevant for Robert Anderson?



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Advantages of Each Orientation

Individual OrientationSelf-reliance

Group OrientationInterdependence

Hierarchical OrientationDiscipline

Participative OrientationAcceptance of Responsibility

Need for CertaintyPrecision

Tolerance for AmbiguityInnovation

Achievement OrientationEfficiency

Quality of Life OrientationCustom Outputs & Personal Service

Long-Term OrientationDeveloping New Market Opportunities

Short-Term OrientationFast Adaptation

Individualism

Power Distance

Certainty

Achievement

Time Orientation

Indulgence OrientationA sense of well-being

Restraint OrientationWork-ethic

Indulgence



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Indulgence vs. Restraint

…the tendency to allow relatively free gratification of basic human drives related to enjoying life and having fun, or the conviction that such gratification needs to be curbed and regulated by strict social norms.

INDULGENCE

Don’t worry, be happy!Think positive!

RESTRAINTRemove severe

restraint and what will become of virtue?

There are limits to self-indulgence,

none to self-restraint.Netherland and USA=68 Brazil=59 Germany=40 China=24



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Debrief: Indulgence vs. Restraint

Questions: For which orientation do you think each person has a preference?

1.Robert Anderson has a

a. Indulgence Orientation

b. Restraint Orientation

2. Andrej Cernak has a

a. Indulgence Orientation

b. Restraint Orientation



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Debrief: Indulgence vs. Restraint

• To work more effectively with Andrej Cernak, Robert Anderson should consider changing his behavioral style: Show his serious side as requiredUnderstand that enthusiasm may be mistaken for

lack of self-controlExpect that Andrej Cernak may be more reticent

and guarded in his interpersonal interactions than what he might be accustomed to. This does not mean Andrej Cernak is unapproachable



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Debrief: Impact on Profits

• If Robert Anderson would not adjust his behavior, the integration of the retail operations might fail

• If Robert Anderson adjusts his behavior, then the integration has a higher chance of success



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The Competitive Advantage of Cross-Cultural Competence

• Organizations that have managers and employees who possess cross-cultural competence have a competitive advantage over organizations in which this is not the case



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Which Organizations are Interested in Cross-Cultural Competence?

• As a general rule, organizations are ready to invest in cross-cultural competence after they have already made importatn gains in efficiency byRestructuring...Out-sourcing work to low-cost centers...Investing in technology...



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German

• The perfect solution is sought

• Negative issues are examined in great detail

• Mistakes are seen as negative

• Regulations determine what you are permitted to do

US American

• A fast appropriate solution is sought (Just do it!)

• Negative issues are reluctantly brought into the open

• Mistakes are seen as growth opportunities

• Regulations determine what you are not permitted to do

A Benefit of Cross-Cultural Competence: Problem-solving Styles

Source: Moosmueller, Alois, Kulturen in Interaktion: Deutsche und US-Amerikanische Firmenendsandte in Japan, Waxmann Verlag, Münster, 1997



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Germanstend to…

Americanstend to think…

Americanstend to…

Germanstend to think…

Project Meetings … get down to business “They are cold and unfriendly”

…begin with small talk “They are wasting time.”

… present detailed plans

“How can they discuss details at this stage?”

… begin with brainstorming

“They are not prepared for the meeting.”

…express criticism openly

“They don't like each other/me”

…be enthusiastic about all ideas

“They are not sincere.”

Project Process … work individually on the task assigned to them

… believe clearly defined milestones guarantee success

“They don't communicate or work as

a team”

…hold frequent meetings; change tasks as circumstances change

… believe continuous contact guarantees success

“There are too many meetings; we can't get our work done.”

Source: TWIST Consulting/ITAP Germany

A Benefit of Cross-Cultural Competence: Bridging problem-solving Styles



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The most important perceived goals of business leaders vary across cultures:

• The executive (US): Growing the business

• The manager (Britain): This year’s profits

• The family manager (India): Continuity

• The family entrepreneur (Latin America): Family interests

• The entrepreneur (Hong Kong): Profits 10 yrs from now

• The founder (Germany): Responsibility towards employees

Source: 2005 Hofstede, Cultures and Organizations: Software of the Mind 263

A Benefit of Cross-Cultural Competence: Working Across Leadership Styles



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A Benefit of Cross-Cultural Competence: Working Across Leadership Styles

• Brazil: Team oriented, participative, humane. Leaders who are high on consideration and have charisma. How work group should function and its goals

• France: Do not expect leaders to be humane and considerate. Task oriented. Charisma valued. Articulate strategy and how it will be attained



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Which bidding practice expresses the right values? Which bidding practice is ethical?•No open bids. Contracts are awarded to family members, friends and trusted members of one’s network•Request for proposals are issued, yet contracts are offered within one’s network•Request for proposals are issued, and contrasts are offered to the most qualified.

A Benefit of Cross-Cultural Competence: Strengthening Ethical Conduct



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• ITAP is one of only 2 companies worldwide endorsed by Dr. Hofstede and approved to represent his research

"This [approval] is due to their professionalism and deep understanding of

my work.”• An Ivy League university partners with ITAP to

certify its coaches in the CWQ




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ITAP CWQ database includes over 8,000 respondents.Results correlate highly with Hofstede’s data. The CWQ

application is currently available in:– English– Latin American Spanish– European Spanish– French– German– Korean– Chinese – Questions and instructions only (not the report) are in

Danish and Japanese




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Hofstede Country Culture

Analysis Australia


Analysis

Germany

Hofstede Country Culture Analysis

Mexico


Analysis China


Analysis India

Hofstede Country Culture AnalysisUnited Arab Emirates




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ITAP is prepared to ITAP is prepared to provide demonstrations provide demonstrations of its Intellectual of its Intellectual Property to qualified Property to qualified licensorslicensors


Who licenses the CWQ?•Human Resource professional in large organizations•Consulting firms seeking the capability to assess cultural values at the individual, group and organizational levels



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Improving Competitive Advantage

• Our services focus on:

1. Global talent retention and development

2. Effectiveness of the senior team and mission critical global teams

3. Global leader and global workforce development

4. Cross-border transformation and change

• Ensure that culture is an asset, not a barrier in your global business




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Catherine Mercer BingCEO, ITAP International, Inc.Managing Director, ITAP Americas, Inc.

353 Nassau Street, First FloorPrinceton, NJ 08540 USA(W) +1.215.860.5640(M) [email protected]: CatherineBing


The Benefits of Cross Cultural Competency

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