How to take advantage of cultural differences. Fons Trompenaars 22 September 2016

Transcription

1 How to take advantage of cultural differences Fons Trompenaars 22 September 2016

2 Creativity Unifies Diverse Ideas Aspect from reality- 1 A rectangle? The larger whole transcends its parts An ellipse? Aspect from reality - 2 1

3 Approaching Dilemmas: Navigating Strategic Tensions Combine Values that are not easily joined therefore scarce... therefore profitable 2

4 Culture 3

5 4

6 Corporate Culture Model Person Culture: Incubator Organizational Chaos MB Passion Learning Person oriented Network MB Subjectives Promotion/ Power Power Culture: Family Hierarchical Egalitarian Strategy MB Objectives Pay for Performance Task oriented Task Culture: Guided Missile Structure MB Job Description Expertise Role Culture: Eiffel Tower 5

7 Four Corporate Cultures Egalitarian Person Task Hierarchical 6

8 From Invention to Intention Egalitarian INITIAL STRENGTHS: CREATIVE FLEXIBLE PROTECTING Person Task INITIAL STRENGTHS: LOYALTY/COMMITMENT STRONG LEADERSHIP SHARING Hierarchical 7

9 Outsourcing Dilemmas On the one hand... while on the other We want flexibility in our service models We want consistency in our business We want to continue investing in our service offering to grow the business We want to outsource non-core business processes We need to manage risks by means of strict contractual arrangements and SLAs We must protect knowledge and expertise that gives us a competitive advantage We want to limit cost We want to keep a close eye on those processes where new developments enable us to invent and innovate We want to give innovative providers trust and freedom in their way of doing We need knowledge sharing arrangements with the supplier to make the most out of outsourcing 8

10 07/ Internal versus External Control External Control Nature as an organism Subjugation to nature Internal Control Nature as a mechanism Dominance over nature 9

11 07/ Internal versus External Control A What happens to me is my own doing. B Sometimes I feel that I do not have enough control over the direction my life is taking. 10

12 Internal versus External Control What happens to me is my own doing 11

13 Internal versus External Control What happens to me is my own doing Universalism MALE MALE- EU FEMALE NL CAU BAA 12

14 From the Balanced to the Integrated Score Card Balanced Score Card Dilemma 13

15 From the Balanced to the Integrated Score Card Inner Directed Improvements in Business Processes Outer directed increase in customer satisfaction 14

16 From the Balanced to the Integrated Score Card Inner directed improvements Lean but mean (1,10) Customer s creature Integrated growth: Pushing through the Pull (10,10) (10,1) Outer directed increase in customer satisfaction 15

17 From Intention to Invasion INITIAL STRENGTHS: LOYALTY/COMMITMENT STRONG LEADERSHIP FLEXIBLE Egalitarian Person Task oriented Task INITIAL STRENGTHS: STRATEGIC TASK ORIENTATED CUSTOMER FOCUSED CONSISTENT Hierarchical 16

18 Outsourcing Dilemmas On the one hand... while on the other We want flexibility in our service models We want consistency in our business We want to continue investing in our service offering to grow the business We want to outsource non-core business processes We need to manage risks by means of strict contractual arrangements and SLAs We must protect knowledge and expertise that gives us a competitive advantage We want to limit cost We want to keep a close eye on those processes where new developments enable us to invent and innovate We want to give innovative providers trust and freedom in their way of doing We need knowledge sharing arrangements with the supplier to make the most out of outsourcing 17

19 The Seven Dimensions of Culture Rules vs. Exceptions 1 Rules versus Exceptions 2 Individual versus Group 3 Neutral versus Expressive 4 Specific versus Diffuse (Holistic) 5 Status: Doing versus Being 6 Time: Sequential versus Synchronic 7 Internal versus External Control 18

20 Rules vs. Exceptions The Car Accident What happens to your friend? 19

21 Rules vs. Exceptions What Right Does Your Friend Have? A. My friend has a definite right as a friend to expect me to testify to the lower figure. B. He has some right as a friend to expect me to testify to the lower figure. C. He has no right as a friend to expect me to testify to the lower figure.... And: would you help your friend? 20

22 Rules vs. Exceptions Dilemma Reconciliation Example: Universalism vs. Particularism Characteristics of the two opposing perspectives: Universalism (Rules & Systems) Consistency Particularism (Exceptions & Relationships) Flexibility Systems, standards & rules Uniform procedures VS Pragmatic Make exceptions Demanding of clarity It depends Letter of the law At ease with ambiguity Spirit of the law 21

23 01/ Universalism Friend has no/some right and would not help Switzerland Canada USA Sweden United Kingdom Australia Netherlands Germany Czech Rep France Singapore Japan Mexico Turkey India China Russia Korea Venezuela

24 Rules versus Exceptions average score 100 U n i v e r s a l i s m L G L H R F I N R & D A D M M F G P R M K T 23

25 01/ Dilemma Globalism and Localism Global Standards (Critical Mass) Cultural Diversity (Differing solutions) 24

26 Globalization versus Localism Global Corporation Global centralized Decentralized Multinational Multi-Local Corporation 25

27 Globalization versus Localism Global centralized Transcultural Corporation International Corporation Decentralized Multinational 26

28 From Invasion to Implementation INITIAL STRENGTHS: STRATEGIC CUSTOMER FOCUSED Egalitarian WEAKNESS: SWEATSHOP SHORT TERMISM Person Task CRISIS OF CONTROL INITIAL STRENGTHS: EFFICIENT STRUCTURED Hierarchical 27

29 Outsourcing Dilemmas On the one hand... while on the other We want flexibility in our service models We want consistency in our business We want to continue investing in our service offering to grow the business We want to outsource non-core business processes We need to manage risks by means of strict contractual arrangements and SLAs We must protect knowledge and expertise that gives us a competitive advantage We want to limit cost We want to keep a close eye on those processes where new developments enable us to invent and innovate We want to give innovative providers trust and freedom in their way of doing We need knowledge sharing arrangements with the supplier to make the most out of outsourcing 28

30 The Seven Dimensions of Culture Specific vs. Diffuse 1 Rules versus Exceptions 2 Individual versus Group 3 Neutral versus Expressive 4 Specific versus Diffuse (Holistic) 5 Status: Doing versus Being 6 Time: Sequential versus Synchronic 7 Internal versus External Control 29

31 Specific vs. Diffuse The Peach & Coconut 30

32 Specific vs. Diffuse The Peach & Coconut PUBLIC PRIVATE 31

33 Specific vs. Diffuse The Peach & Coconut Specific Relationship 32

34 Specific vs. Diffuse The Peach & Coconut PUBLIC PRIVATE No Relationship 33

35 Specific vs. Diffuse The Peach & Coconut PRIVATE PRIVATE Diffuse Relationship 34

36 Specific vs. Diffuse The Peach & Coconut PRIVATE PUBLIC Danger Zone 35

37 Specific vs. Diffuse Painting the House A boss asking to paint his house The colleague argues: You don t have to paint the house if you don t feel like it. He is your boss in the company. Outside the company, he has little authority. The subordinate argues: Despite the fact that I don t feel like it, I will paint the house anyway. He is my boss and you cannot ignore it outside your work either. 36

38 04/ Specificity Would not paint the house Sweden Netherlands Denmark UK Canada USA Australia Japan Mexico Turkey Thailand Greece Belgium Korea Singapore Venezuela Kuwait Nigeria China India %

39 Hi-tech versus Hi-touch 38

40 From Implementation to Innovation Egalitarian INITIAL STRENGTHS: LEAN PROCESSES STRUCTURED Person Task INITIAL STRENGTHS: CREATIVE CLIENT IS KING Hierarchical 39

41 Outsourcing Dilemmas On the one hand... while on the other We want flexibility in our service models We want consistency in our business We want to continue investing in our service offering to grow the business We want to outsource non-core business processes We need to manage risks by means of strict contractual arrangements and SLAs We must protect knowledge and expertise that gives us a competitive advantage We want to limit cost We want to keep a close eye on those processes where new developments enable us to invent and innovate We want to give innovative providers trust and freedom in their way of doing We need knowledge sharing arrangements with the supplier to make the most out of outsourcing 40

42 Digital Support 41

43 Thank You!