Riding the Waves of Culture

Riding the Waves of Culture Reducing Lines, Expanding Circles 27th March 2009 Beurs van Berlage Fons Trompenaars Your clients and partners 2 1

The old MBA paradigm 3 We know this right? Lets now do it with one line 4 2

The new MBA Paradigm: with ONE line 5 The new MBA Paradigm 6 3

But you have to fold the paper! 7 Approaching Dilemmas: Navigating Strategic Tensions To Create Wealth is to Combine Values That are not easily joined Therefore scarce... Therefore profitable. 8 4

This approach leads to concrete and measurable actions Impact Realize and and Root Implement Implement Reconciling ReconcilingActions Reconcile Resolve Resolve Cultural CulturalDifferences Respect Appreciate Appreciate Cultural CulturalDifferences Recognize Increase IncreaseAwareness Time 9 Core Proposition Successful leaders have the propensity and competence to help organizations and its teams reconcile dilemmas for better sustainable business performance 10 5

Some hard evidence 11 Our research reveals that propensity to reconcile dilemmas correlates with bottom line business performance Correlation (Spearman s coefficient of rank correlation) Correlation between reconciliation and 360 o feedback by peers and subordinates 0.71 Correlation between reconciliation and bottom line business performance in profit centre/budget stream 0.69 Source: 21 Leaders for the 21 st Century p429 12 6

Intercultural Competence Profile the group Average 13 What is Culture? Please define culture 14 7

A model of culture Physical contact Language Work ethic Expression of emotion Food Meeting style Rhythm & Pace Architecture Behaviour Dress Literature 15 A model of culture Explicit Culture 16 8

Culture as a Normal Distribution For example US Culture French Culture Stereotype Stereotype 17 A model of culture Explicit Culture Basic Assumptions Implicit Culture 18 9

About Culture Is a dynamic process of solving human problems/dilemmas in the areas of - Human Relationships - Time - Nature 19 01/ The Car Accident What happens to your friend? 20 10

01/ 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. 21 01/ Dilemma: INTEGRITY The top 2 of your corporate values are: 1. Integrity 2. We respect the cultures of others Please discuss in the context of these values what your answer would be 22 11

01 Universalism versus Particularism 02 Individualism versus Communitarianism 03 Neutral versus Affective 04 Specific versus Diffuse 05 Achievement versus Ascription 06 Sequential versus Synchronic 07 Internal versus External Control 01/ Universalism versus Particularism Consistency Systems, standards & rules Uniform procedures Demanding of clarity Letter of the law Flexibility Pragmatic Make exceptions It depends At ease with ambiguity Spirit of the law 24 12

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 India China Russia Korea Venezuela 32 37 44 47 54 64 69 68 73 83 93 93 92 91 91 90 87 97 0 20 40 60 80 100 25 01/ Dilemma: Global versus Local Global Standards (Critical Mass) Cultural Diversity (Differing solutions) 26 13

01/ Global versus Local Global Standards (Critical Mass) Be like US (1,10) Transnational Centers of Excellence (10,10) (10,1) Small Nations Multi-Localism Cultural Diversity (differing solutions) 27 01/ Main Challenges 1. Mass-Customization 2. Co-Opetition 3. It is Cool to be emotional 4. Moments of Truth 5. Servant Leader 6. Just In Time Synchronizing Sequences 7. Pushing through the Pull 28 14

01 Universalism versus Particularism 02 Individualism versus Communitarianism 03 Neutral versus Affective 04 Specific versus Diffuse 05 Achievement versus Ascription 06 Sequential versus Synchronic 07 Internal versus External Control 02/ Individualism versus Communitarianism a) One said: It is obvious that if one has as much freedom as possible and the maximum opportunity to develop oneself, the quality of one s life would improve as a result. b) Another said: If the individual is continuously taking care of his or her fellows then the quality of life for us all will improve, even if it obstructs individual freedom and individual development. 30 15

02/ Individualism Percentage opting for individual freedom Israel Canada USA Denmark Netherlands Finland Australia UK Sweden Russia Germany Italy Indonesia Singapore China France Japan India Mexico Egypt 32 30 39 37 44 42 41 41 53 52 63 61 61 60 71 69 67 65 64 89 0 20 40 60 80 100 31 02/ Dilemma Reconciliation The Individual and the Team Case Study: Individual Performance versus Team Spirit 32 16

02/ The Individual and the Team Reward Individual Performance Stimulate Team Co-operation 33 Individual Motivation 02/ Dilemma Reconciliation (1,10) Me, Myself and I withholding Information Team Motivation 34 17

02/ Dilemma Reconciliation Individual Motivation Team Mediocrity (10,1) Team Motivation 35 02/ Dilemma Reconciliation Individual Motivation (5,5) Go for the Small team Team Motivation 36 18

02/ Dilemma Reconciliation Individual Motivation Reward Teams for Individual Creativity (10,10) AND Reward Individuals for Team Work 37 Team Motivation 02/ Main Challenges 1. Mass-Customization 2. Co- Opetition 3. Moment of Truth 4. It is Cool to be Emotional 5. Servant Leader 6. Just In Time Synchronizing Sequences 7. Pushing through the Pull 38 19

01 Universalism versus Particularism 02 Individualism versus Communitarianism 03 Neutral versus Affective 04 Specific versus Diffuse 05 Achievement versus Ascription 06 Sequential versus Synchronic 07 Internal versus External Control 03/ Neutral versus Affective In my society, it is considered unprofessional to express emotions overtly. Please select your position on the statement above: A. Strongly agree B. Agree C. Undecided D. Disagree E. Strongly disagree 40 20

03/ Neutral versus Affective Percentage not expressing emotions overtly Ethiopia 81 % 74 64 Japan Hong Kong China India Canada Denmark Portugal Sweden UK USA Brasil Italy France Argentina Russia Spain Egypt Kuwait 19 18 15 33 30 28 24 55 51 49 48 47 46 45 43 40 0 20 40 60 80 100 41 03/ Neutral versus Affective Myers Briggs Type Indicator (MBTI) DILEMMA How to select the Right Person? Myers Briggs Type Indicator (MBTI) 42 21

03/ Neutral versus Affective Emotions in Control 43 03/ Neutral versus Affective Emotions in Control 44 22

03/ Neutral versus Affective (1,10) Emotions and head in Control Analysis, Paralysis Heart in Passion 45 03/ Neutral versus Affective Emotions and head in Control (10,1) Loving Neurotic Heart in Passion 46 23

03/ Neutral versus Affective Emotions and head in Control (10,10) Continually checking what your heart communicates Heart in Passion 47 03/ Main Challenges 1. Mass-Customization 2. Co-Opetition 3. It is Cool to be Emotional 4. Moments of Truth 5. Servant Leader 6. Just In Time Synchronizing Sequences 7. Pushing through the Pull 24

01 Universalism versus Particularism 02 Individualism versus Communitarianism 03 Neutral versus Affective 04 Specific versus Diffuse 05 Achievement versus Ascription 06 Sequential versus Synchronic 07 Internal versus External Control 04/ Specific versus Diffuse PUBLIC PRIVATE 50 25

04/ Specific versus Diffuse PUBLIC PUBLIC Specific Relationship 51 04/ Specific versus Diffuse PUBLIC PRIVATE 52 26

04/ Specific versus Diffuse No Relationship 53 04/ Specific versus Diffuse PRIVATE PRIVATE Diffuse Relationship 54 27

04/ Specific versus Diffuse PUBLIC PRIVATE PRIVATE Danger Zone 55 04/ Specificity 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. 56 28

04/ Specificity Would not paint the house Sweden Netherlands Denmark UK Canada USA Australia Japan Mexico Thailand Greece Belgium Korea Singapore Venezuela Kuwait Nigeria China 32 47 46 52 58 71 70 69 67 66 65 82 78 91 % 91 89 88 87 0 20 40 60 80 100 57 From the Balanced to the Integrated Score Card Balanced Score Card Dilemma 58 29

From the Balanced to the Integrated Score Card Specific Financial Performance Diffuse Development of People 59 From the Balanced to the Integrated Score Card Specific financial performance Cost cutting yourself (1,10) (10,10) Integrated growth: Train for Cost Cutting (10,1) Interests in future innovating and learning 60 Subsidised seminar 30

04/ Main Challenges 1. Mass-Customization 2. Co-Opetition 3. It is Cool to be Emotional 4. Moments of Truth 5. Servant Leader 6. Just In Time Synchronizing Sequences 7. Pushing through the Pull 61 01 Universalism versus Particularism 02 Individualism versus Communitarianism 03 Neutral versus Affective 04 Specific versus Diffuse 05 Achievement versus Ascription 06 Sequential versus Synchronic 07 Internal versus External Control 31

05/ Achievement versus Ascription What You Do Who You Are STATUS? 63 05/ Achievement versus Ascription Aspects of ascribed status Family Age Gender Education 64 32

05/ Achievement versus Ascription The most important thing in life is to act as really suits you, even if you don t get things done 65 05/ Achievement versus Ascription Percentage not agreeing with acting as really suits you USA Australia Canada UK Sweden Denmark Germany Switzerland France Hong Kong Mexico Russia China Japan Poland Korea Czech Republic Argentina Egypt 4 13 12 21 20 34 33 32 31 30 28 26 40 49 56 54 69 65 76 % 0 20 40 60 80 100 66 33

67 34

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