The Business Case For Cultural Competency

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1 The Business Case For Cultural Competency Ila Gandhi TMC A Berlitz Company 4/28/ TMC A Berlitz Company. All rights reserved 1

2 Agenda Global business and workforce trends The business case for cultural competence What is cultural competence What gets in the way of Cultural Competence Developing cultural competence A framework to reskill and retool employees The model Practical application HR s role in driving cultural competence TMC: Who we are and how we help our clients 4/28/ TMC A Berlitz Company. All rights reserved 2

3 The Impact of Globalization Increasing globalization represents one of the most powerful levers available for boosting growth yet the world is generally less globalized than often assumed. 4/28/ TMC A Berlitz Company. 3 All rights reserved Depth Index of Globalization 2013

4 Estimated Population Growth by Region (based on top 10 countries) 1950 Population estimate in 2050 is 9.6B, previously 7.2B Asia Europe 2013 LatAm N. Amer Africa 2050 (est) Faces of the Future, The Economist, June 2013 A flat world demands cultural competence Markets globalized Multicultural teams European culture no longer dominant 4/28/ TMC A Berlitz Company. All rights reserved 4 Africa and Asia dominate population growth

5 Culture 2020 Defined Cultural spectrum, by Goldman Sachs, illustrates the complex workforce. This structure was designed over one year by an internal task force termed Asians in Asia. The project scope was to help untangle the complex cultural spectrum present in the region to further inform its people process (talent management) in Asia. 4/28/ TMC A Berlitz Company. All rights reserved 5

6 Values Drive Behavior Objective Culture Observable Behaviors Beliefs Subjective Culture Unobservable (Underlying Values) 4/28/ TMC A Berlitz Company. All rights reserved 6

7 Definitions and Characteristics of Culture Behavior Norms Beliefs and Assumptions Values Emotions Definition: The complex pattern of ideas, emotions and observable manifestations Behaviors and/or symbols that tend to be expected, reinforced and rewarded by and within a particular group. -TMC Culture is: Collective Learned Dynamic Situational Complex Contradictory Context/Situation 4/28/ TMC A Berlitz Company. All rights reserved 7

8 Culture is Complex Functional Culture National / Societal Team Culture Identity Group Culture Individual Culture Culture Organizational Culture 4/28/ TMC A Berlitz Company. 8 All rights reserved

9 Why Cultural Competence Diversity The Who Inclusion The What Intercultural Competence The How 4/28/ TMC A Berlitz Company. All rights reserved 9

10 Stages of Development Ethnocentrism / Mono-Culturalism Denial Defense Minimization Acceptance Adaptation Integration Ethnorelativism / Multi-Culturalism 4/28/ TMC A Berlitz Company. DMIS All Model rights by reserved Milton Bennett 10

11 What Get s in the Way of an Intercultural Mindset o o o o The dangers of stereotyping Personal bias and prejudices The dynamics of differences Insider Outsider Dynamics 4/28/ TMC A Berlitz Company. All rights 11 reserved

12 Strategic Performance Framework 4/28/ TMC A Berlitz Company. All rights 12 reserved

13 Connection Between Culture and Preferences Behavior Norms Beliefs and Assumptions Values Emotions Context/Situation Interaction Style Orientations that impact how we communicate and engage others. Thinking Style Orientations that impact how we process information. Sense of Self Orientations that define how we view our self and are motivated. The connection between behaviors, beliefs, and emotions that are expected, reinforced and rewarded by and within a particular group. 4/28/ TMC A Berlitz Company. All rights reserved 13

14 The Cultural Orientations Model A neutral framework for describing and understanding cultural differences. Interaction Style Thinking Style Sense of Self How people tend to communicate and engage with others in work situations. How people tend to process information in work situations. How people tend to view identity and motivation in work situations. fixed-fluid being-doing direct-indirect expressive instrumental formal-informal universalistic-particularistic single-multi focus low-high context linear-systemic inductive-deductive past-future control- constraint private-public hierarchy-equality collectivistic-individualistic cooperative-competitive flexibility-order 4/28/ TMC A Berlitz Company. All rights reserved 14

15 Cultural Perspectives Open attitude is a prerequisite for engaging in the continuous learning process of developing cross-cultural effectiveness Self-awareness facilitates awareness of others Cultural knowledge, in turn must be translated into crosscultural skills to achieve cross-cultural effectiveness To become useful selfand other-awareness must be grounded in cross-cultural knowledge 4/28/ TMC A Berlitz Company. All rights reserved 15

16 Cultural Skills Cultural Due Diligence Assessing and preparing for the possible impact of culture and cultural difference Is it reasonable or feasible for my counterpart(s) to change? Cultural Dialogue Exploring cultural differences and negotiating mutual adaptations YES NO Style-Switching Using a different behavioral approach to accomplish one s goals Cultural Mentoring Helping others with cultural adaptation and integration 4/28/ TMC A Berlitz Company. All rights reserved 16

17 A Cultural Continua Hierarchy Equality Power How individuals view differential power relationships. 4/28/ TMC A Berlitz Company. All rights reserved 17

18 My Personal Journey to Cultural Competence Influencers / Experiences Raised in a traditional Indian family environment Women do not speak up and share their thoughts Family Elders make the decisions for you and the family Individualistic behavior was considered selfish and disrespectful Scenario In my first job in the United States I was miserable at work. I would never speak up in meetings since I was always waiting for complete silence before speaking Felt awkward and uncomfortable at work since I assumed my co-workers perceived me as being arrogant and/or aloof Was reluctant to take on any responsibility not because I did not want to but, I thought I did not have the permission nor title to do so. Development Plan Attended a course on Understanding the American culture (Cultural Due Diligence) Made an effort to break the ice by saying something at the beginning of the meeting (Style-Switching) Validation: It s okay to speak up your opinion matters (Style-Switching) Volunteered for assignments provided the opportunity to build relationships (Style Switching) Leveraged my Cultural Mentor (Cultural Mentoring and Cultural Due Diligence) 4/28/ TMC A Berlitz Company. All rights reserved 18

19 Your role as HR Leaders FROM: Raising awareness and knowledge TO: Spreading Cultural Competence into the organization Group Individual Team Organization Goal: Focus Areas: Enhance individual performance Cultural Transitions Relocations On boarding new hires Developing Leaders Working with diverse colleagues Building cross-functional relationships Improve team performance Identify gaps between team members Establish team operating principals based on gaps and personal preferences Maximize impact of virtual teams Enable system wide change Moderate cultural integration discussions Coach project teams entering new markets Drive collaboration in mergers and acquisitions Work with Employee Resources Groups 4/28/ TMC A Berlitz Company. All rights reserved 19

20 TMC Who we are We help companies execute their global business strategies through training, web tools and consultative solutions. We employ a blended learning approach that supports skill development at the organizational, team and individual levels We help facilitate the development of global leadership skills of leadership, communication and cultural agility across the organization, enabling the firm to achieve its business goals and maximize performance. 4/28/ TMC A Berlitz Company. 20 All rights reserved

21 4/28/ TMC A Berlitz Company. All rights reserved 21