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SEABURY GROUP / DHL / AXA IM / CREDIT SUISSE

/ INVESCO / AVON PRODUCTS INC / ROCHE PHARMA

/ HSBC / GFK / DEUTSCHE BANK / J&J / STERLITE

TECHNOLOGIES / ANADIGICS INC / & MANY MORE…

Stephen Martin

Kimball Consulting Ltd [email protected]

Previously:

Head of Human Resources,

Global Sales & Marketing / Sterlite

Global Head of People Capability / HSBC

SMEx, Global Finance Transformation / Deutsche Bank

Head of HR Latin America, Head of HR EMEA,

Head of Global Mobility / Chase JPM

Business Across Cultures

mailto:[email protected]

WORKING PRINCIPLE…

‘Culture General’ Common dimensions that differentiate how

people think and act, applied to any and all cultures

Vs.

‘Culture Specific’ The characteristics, features and

‘do’s & don’ts’ of particular countries

AGENDA

1. Introduction

2. What is Culture?

3. Culture as a Business Issue

4. Cross Cultural Moments

5. Hofstede: A Quick Overview

6. How Hofstede is Used: The Culture in the Workplace Questionnaire

7. Your Individual Profile

8. The module Assignment:

Guidance Notes

LECTURE STYLE

I talk for hours

You listen

You take notes

We all go home

LECTURE STYLE

I talk for hours

You listen

You take notes

We all go home

 I present ideas,

research, content:

I ask you questions

 You listen, respond,

discuss, ask questions,

challenge, think

 You take notes

 We all go home

2 DISCUSSION:

➢What is ‘Culture’?

A Model of Culture

Signs and Symbols

Behavioural

Norms

Values

& Beliefs

Visible culture

Culture’s rules

Culture’s core

assumptions

…open to the foreigner

…difficult to access for

the foreigner

…an effort for the foreigner

The Fundamentals

of Culture

SO CULTURE IS ABOUT:

Superficial signs and symbols, readily

visible and open to the foreigner

Shared behavioural norms and

expectations of others’ behaviour,

accessible to the foreigner with effort

Shared underlying values and beliefs,

often inaccessible to the foreigner

AND DESPITE APPARENT

CULTURAL CONVERGENCE:

National culture is robust, powerful, and

takes a very long time to change

It impacts how we think, and what we

consider to be the ‘right’ approach

It affects relationships – with clients,

with locally based staff, and with

international colleagues

NATIONAL CULTURE IS…

‘…the collective programming of the mind

that distinguishes the members of one

group or category of people from others’

‘…shared values and belief systems’

‘…culture is learned’

Cultures & Organisations: Software of the Mind (3rd Edn)

Hofstede, Hofstede, Minkov

➢ WHY DOES

NATIONAL CULTURE

MATTER?

➢ TO SOCIETY?

➢ TO BUSINESS AND ORGANISATIONS?

➢ TO YOU?

This Photo by Unknown Author is licensed under CC

BY-NC-ND

http://mrmeex.deviantart.com/art/Baby-s-Puzzled-Expression-205541767

https://creativecommons.org/licenses/by-nc-nd/3.0/

WHY DOES CULTURE MATTER?

 Culture shapes our personal preferences

 Culture shapes our behavioural

expectations of others

 Culture shapes our reactions to

others’ behaviour

 Culture is ‘The Software of the Mind’

(Hofstede)

➢ SHOULD WE WORRY ABOUT

CULTURAL STEREOTYPING?

This Photo by Unknown Author is licensed under CC BY-NC-ND

http://vidamanejo.com/2014/04/19/my-2-states-story-a-cross-cultural-marriage/

https://creativecommons.org/licenses/by-nc-nd/3.0/

..normal distribution / national average scores

➢ SHOULD WE WORRY ABOUT

CULTURAL STEREOTYPING?

 Cultural Generalization: Making a statement

of probability based on systematically collected

data; identifying a tendency demonstrated by a

majority of cultural group members

 Stereotyping: The application of a cultural

generalisation to every member in a cultural

group, or generalising from only a few group

members or inadequate data

From: Ann Gross / Intercultural Development Continuum 16

➢ SHOULD WE WORRY ABOUT CULTURAL STEREOTYPING?

YES.

AND IT’S OK TO ‘GENERALISE’

UNI DO Dec. 2000 © Kimball Consulting Ltd / S M / Oct.2000 4

Culture in Context: ‘Four Windows’ From: Dr. Joh n Bing / Pr esident ITAP Inter national

n INDIVIDUAL

n Personal History

n Family Background

n Personality

n ENVIRONMENTAL

n Economic Factors

n Market Issues

n Social Factors

n NATIONAL CULTURE

n Education

n National Values

n Religious Beliefs

n ORGANISATIONAL CLIMATE

n Corporate Culture

n Organisational Structure

n Global Reach

3 CULTURE

AS A BUSINESS ISSUE

3: CULTURE AS A BUSINESS ISSUE

THE RESEARCH SAYS…

➢ In cross-border M&A, 83% of companies

thought the deal was a success; KPMG found:

17% added value

30% made no difference

53% destroyed value

➢ ‘Resolving cultural issues’ is one of six hard

& soft ‘keys’ to M&A success

➢ Deals were 26% more likely to succeed if they

focused on resolving cultural issues

Source: KPMG Global Research Report / M&A / 1999 & 2001 20

THE RESEARCH SAYS…

“Language barriers, different working practices

and lack of cultural understanding are major

obstacles to uniting the workforce behind a

common vision and delivering benefit targets”

Source: KPMG Global Research Report / M&A / 1999 & 2001

France: The

Presidential model

UK: The Prime-

Ministerial Model

Adapted from: Schneider, Susan C., and Barsoux, Jean-Louis, Managing Across Cultures. 1997

Management Organisation

MANAGEMENT ORGANISATION

Germany: The

Functional model

Adapted from: Schneider, Susan C., and Barsoux, Jean-Louis, Managing Across Cultures. 1997

USA: ‘PRESIDENTIAL

INCLUSIVE’

Italy: ‘Multiple Hierarchy’

Source: International Management /

Caricatures of management organisation

/ Reed Publishing

Management Organisation

THINKING THROUGH A PROBLEM:

TOP-DOWN OR BOTTOM-UP?

➢ Deductive reasoning works from the more general theory to the more specific (observation and confirmation) ...sometimes called a ‘top-down’ approach

➢ Inductive reasoning moves from specific observations (facts, patterns) to broader generalisations (theories) …sometimes called a ‘bottom up’ approach

HR POLICY & PROCESSES

➢ Financial Times reported research across

Germany / France / Italy / UK / Spain

➢ Comparison of Recruitment / Promotion /

Remuneration / Staff reduction scenarios

➢ Widely varying responses to the same

situations - related to national culture

➢ Principally varied in emphasis on the

‘group’ versus the ‘market’

Financial Times Mastering Global Business series 1999 ‘National Cultures, International Business’

Michael Segalla

MANAGEMENT PRACTICE

➢Communication

➢Teamwork

➢Reward

➢Performance

➢Incentives

➢Decision Making

➢Power

➢Influence

➢Leadership

➢Achievement

➢Long & Short Term

➢Prioritisation

COMMUNICATION

Having something to say…

And saying it…

So that someone else hears…

and understands

The sender encodes

an idea into a

message…

The receiver decodes

that message into an

idea…

Barriers / filters /

noise

Culture impacts

‘encoding’...

Culture impacts

‘de-coding’...

Culture impacts the

Barriers / filters /

noise

TECHNICAL EXPERTISE VS GENERAL MANAGEMENT

LAU REN T BARCH ART "It is important for a manager to have at hand precise answers to most of the

questions that his subordinates may raise about their work."

100

Country Source: Andre Laurent, "The Cultural Diversity of Western Conceptions of Management." Intl. Studies of Man & Org., Vol. XIII, No. 1-2, PP. 75-96.

(With interpolated data f rom later study.)

% A

g re

e m

e n

Sweden USA NLD Denmark Great Britain Switzerland Belgium Germany France Italy Japan

PACING LANGUAGE...

 Anglo

 Latin

 Oriental

From Riding the Waves of CultureFons Trompenaars and Charles Hampden-Turner

SILENCE

“The pattern of silent communication … for

oriental languages frightens Westerners.

The moment of silence is interpreted as a

failure to communicate. But in some

cultures it is a sign of respect for the other

person if you take time to process

information without talking yourself.”

From Riding the Waves of Culture Fons Trompenaars

and Charles Hampden-Turner

TONE OF VOICE

“Another cross cultural pattern arises from the tone of voice.

For some neutral societies, ups and downs in speech suggest that the speaker is not serious…

Oriental societies tend to have a much more even style; it is self-controlled, and it shows respect. Frequently the higher the position a person holds, the lower and flatter the voice.”

From Riding the Waves of Culture Fons Trompenaars and Charles Hampden-Turner

INVASION OF SPACE …TOUCHING

# TOUCHESLOCATION

180PUERTO RICO (San Juan)

110FRANCE (Paris)

2USA (Gainesville, FL)

0UK (London)

1 hour observation (in a coffee shop) the

number of times people in conversation

touched one another

From “Body Politics,” by Nancy Henley

BARRIERS / FILTERS / NOISE…

What you hear

What you see

What you value

GEERT HOFSTEDE / CULTURES & ORGANISATIONS: SOFTWARE OF THE MIND

“ If we have to wait until all peoples share the

same cultural values we will wait forever.”

“Common practices, not common values

are what solve practical problems.

The differences in values should

be understood, the differences

in practices should be resolved.”

Hofstede

4 CROSS CULTURAL

MOMENTS

Oops. 1. Organise into six groups

2. Review ONE of the case

studies as directed

3. Discuss and analyse the

action: from a cross-cultural

perspective, what is going

on here? (15 Mins)

4. Feedback to the full room

(5 mins each group)

THE INTERCULTURAL DEVELOPMENT

CONTINUUM

Monocultural ------------------------------------------------------ Multicultural

DENIAL POLARISATION MINIMISATION ACCEPTANCE ADAPTATION

MISSESS

DIFFRENCES

JUDGES

DIFFERENCES

MINIMISES

DIFFRENCES

UNDERSTANDS

DIFFERNCES

ADAPTS TO

DIFFERENCES

ACTIVE

AVOIDANCE

OUR CULTURE IS

BETTER THAN

OTHER

CULTURES

WE ALL FIT IN

AND GET ALONG /

DIFFERENCES

DON’T MATTER

MUCH

DEEPLY

UNDERSTANDS

DIFFRENCES AND

THEIR IMPACT

ADJUSTS

MINDSET AS WELL

AS BEHAVIOUR

Based on The Developmental Model of Intercultural Sensitivity (DMIS), created by Dr. Milton

Bennett, Co-Director of the Intercultural Communication Institute, Portland Oregon

RESOLVING

CULTURALLY-BASED TENSIONS:

R: Recognise

R: Respect

R: Reconcile

Fons Trompenaars / Riding the Waves of Culture

http://maronites.files.wordpress.com/2011/03/reconciliation-sculpture.jpg

RESOLVING CULTURALLY-BASED

TENSIONS:

Win / Lose Compromise Win / Win

5/5

10/1010/1

1/10

Fons Trompenaars / Riding the Waves of Culture

HOFSTEDE:

A QUICK OVERVIEW ORIGINS OF HOFSTEDE RESEARCH

INDIVIDUALISM VS COLLECTIVISM

Distinguishing between cultures where actions are

based on the interests of the individual

Versus cultures where the emphasis is on the

interests of the group

EXAMPLE FEATURES

➢ Focus on management of the individual

➢ Self-interest comes before that of the group

➢ Separation of personal & professional lives

➢ Competition between individuals

➢ Efficiency prevails over loyalty

➢ ‘Speaking your mind’ is characteristic of honesty

➢ Hiring & promotion prioritises skills & merit

➢ Focus on management of the group

➢ Interests of the group prevail over interests of the individual

➢ Emotional dependence of the individual on the organisation

➢ Emphasis on co-operation & harmony

➢ Loyalty prevails over efficiency

➢ Harmony should be maintained & conflict avoided

➢ Hiring & promotion takes into account the interest of the group

100

Hofstede : Individualism / Collectivism Index ( IDV Rank Score )

Example countries

The extent to which the less powerful members

of institutions and organisations within a country

expect and accept that power is distributed unequally

Contrasts a ‘participative style’

vs. a ‘hierarchical style’

POWER DISTANCE

EXAMPLE FEATURES

➢ Inequalities are both expected and desirable

➢ Subordinates expect and wait to be told what to do

➢ Formality is the norm

➢ Power holders are entitled to privileges; it is expected

➢ Pyramidal structures prevail

➢ Relationships feature dependency and obedience

➢ Teachers (trainers) are gurus who transfer their wisdom

➢ Centralisation is popular

➢ Inequalities should be minimised

➢ Subordinates expect to be consulted and to have authority

➢ Informality is the norm

➢ Privilege is unfair; emphaisis on equal status

➢ Structures are based on task

➢ Relationships feature independence and initiative

➢ Teachers are experts who transfer impersonal truths

➢ Decentralisation is popular

100

120

Hofstede: Power Distance Index ( PDI ) values

Example countries

HANS EICHEL, GERMAN FINANCE MINISTER

TOLD THE FT THAT THERE SHOULD BE

“INTENSIVE EFFORTS” TO DEVELOP COMMON

RULES “IT WOULD BE RATHER SENSIBLE

IF WE WERE TO BEGIN TO GIVE OURSELVES

SOME RULES, BECAUSE CULTURES

MUST BE BROUGHT INTO LINE”

“GERMAN PRACTICE IS VERY CONSENSUS

ORIENTED. THE ANGLO-SAXON WAY IS

SOMEWHAT DIFFERENT.

THAT IS THE PROBLEM WE ARE FACING”

A SPOKESMAN FOR PRIME MINISTER

TONY BLAIR SAID

“IT’S SOMETHING THAT

HAS TO BE SORTED OUT AT THE

CORPORATE LEVEL.

WE ARE IN A EUROPEAN MARKET.” 49

➢ The degree to which a society works to

avoid, reduce or eradicate uncertainty

around the new and different

➢ As opposed to one that adapts effectively

and even encourages change, and suffers

little anxiety when faced with an uncertain

outcome

Uncertainty Avoidance

100

120

Hofstede: Uncertainty Avoidance Index ( UAI )

Example countries

EXAMPLE FEATURES

➢ Rules and procedures are specified and should not be broken

➢ Emphasis on philosophical, normative rules

➢ Risk-averse where risk cannot be calculated

➢ Relative intolerance of different or marginal people

➢ Students expect structured learning and seek the right answers; teachers have them

➢ What is different is dangerous

➢ Flexibility is common; rules should fit the situation and may be broken

➢ Emphasis on the pragmatic, on the practical

➢ Comfortable with ambiguous situations and unfamiliar risk

➢ Relative tolerance of different or marginal people

➢ Students expect open-ended learning and discussion; teachers can say ‘I don’t know’

➢ What is different is curious

➢ Contrasts cultures where the focus is on

getting on with the task and building

relationships along the way; trust is

assumed

➢ Versus cultures where a relationship is a

pre-requisite to embarking on a task; trust

needs to be established

Achievement Masculinity-Femininity

100

Hofstede: Masculinity Index ( MAS)Achievement:

Task (Masc) vs Relationship (Fem)

Example countries

EXAMPLE FEATURES ➢ Goal achievement has priority

over life quality

➢ Assertiveness / competitiveness / personal ambition are virtues

➢ Big & fast are beautiful; the dominant value is material success; performance counts

➢ The strong are admired

➢ Men are expected to achieve, women to care

➢ Failing in school is a disaster

➢ Conflicts are resolved by fighting them out

➢ Quality of life has priority over goal achievement

➢ Modesty, solidarity and helping others are virtues

➢ Small & slow are beautiful; care for others and preservation are valued; equality counts

➢ There is sympathy for the weak

➢ Women can work without having to try to act like men; men can care

➢ Failing in school is a minor accident

➢ Conflicts are resolved by compromise and negotiation

➢ The degree to which cultures demonstrate

orientation and adpatation towards the

future, through persistence and deferred

gratification

➢ Versus orientation framed by the past and

the present, with focus on near-term

achievements and rewards

(Origins: Bond / China data) 56

Long-Term Orientation

100

Long-Term Orientation

Example countries

➢ Quick results are expected; continuous short-term success ensures long-term success

➢ Control systems focused on improving near-term financial performance are in place

➢ Profit growth, ROI and residual income are the measures that matter

➢ Respect for tradition prevails

➢ Spending for status features

➢ Immediate and short-term gratification is expected

➢ Success over the long-term is valued over short-term gain

➢ Managers are allowed time and resources to make their contributions

➢ Market share, sales growth and customer satisfaction are the measures that matter

➢ Pragmatic adaptation of tradition to fit new circumstances

➢ Deferred gratification of needs is accepted

➢ Thrift is valued

Example features

NEW (2010) DIMENSION OF CULTURE:

HOFSTEDE, HOFSTEDE & MINKOV: LIGHT OR DARK?

INDULGENCE

(vs RESTRAINT)

 Developed from World Values Survey (WVS)

work on ‘happiness’ item / Inglehart

 Refined and extended by Michael Minkov

NEW (2010) DIMENSION OF CULTURE:

HOFSTEDE, HOFSTEDE & MINKOV: LIGHT OR DARK?

 INDULGENCE: A tendency to allow

relatively free gratification of basic and

natural human desires related to enjoying

life and having fun

NEW (2010) DIMENSION OF CULTURE:

HOFSTEDE, HOFSTEDE & MINKOV: LIGHT OR DARK?

 INDULGENCE: A tendency to allow

relatively free gratification of basic and

natural human desires related to enjoying

life and having fun

 RESTRAINT: A conviction that such

gratification needs to be curbed and

regulated by strict social norms

EXAMPLE FEATURES

➢ Higher percentage of ‘very happy people’ Lower ‘moral discipline’ (Bond / CVS)

➢ A perception of personal life control

➢ Thrift is not very important

➢ Positive attitude / more extroverted personalities

➢ E-mail and Internet used for private contacts

➢ Smiling is a norm

➢ Lower proportion of police; maintaining order is not a high priority for society

➢ Lower percentage of ‘very happy people’ / Higher ‘moral discipline’

➢ A perception of helplessness; what happens to me is not my own doing

➢ Thrift is important

➢ Cynicism / More neurotic personalities

➢ Less use of E-mail and Internet for private contacts

➢ Smiling is suspect

➢ Higher proportion of Police; maintaining order is a high priority for society

100

120

Hofstede : INDULGENCE vs RESTRAINT

Example countries

So what is

wrong with

that? 64