Cross-cultural Leadership Junior-Prof. Dr. Brooke A. Shaughnessy No copying, photographing, video recording allowed.. Institute for Leadership and Organization (ILO). LMU Munich. All rights reserved. No part of this material (including verbal presentations of it) may be recorded, reproduced, stored in a retrieval system, or transmitted in any form or by any means- -electronic, mechanical, photographing, scanning, photocopying, video recording, or otherwise--without prior written permission. To order copies or request permission to reproduce materials, e-mail ilo@bwl.lmu.de. 1
Agenda What is Culture? Global Leadership Developing Global Dexterity 2
Culture 3
The Notion of Culture Behavior, Artifacts & Products Explicit culture Norms & Values Implicit culture Basic Assumptions Original source: Trompenaars (1993) p. 23 4
Culture as software of the mind Culture is mental programming: patterns of thinking, feeling, and acting -Geert Hofstede Source: Hofstede (2010) 5
What do you consider typically German? 6
Example: Crossing the street (1) Foreigners don t always wait for the green man to cross They often get this reaction: 7
Example: Crossing the street (2) Why? Cultural values When we think about culture and how behaviors are usually the first things we can observe are behaviors how the people around us are acting the explicit culture. The implicit culture is the why the values and beliefs held by the culture or as in this case, the value of community here in German culture. 8
Example: Crossing the street (3) Explicit culture is readily observable... As evidinced by nearly 15 million Google search results This is an easily observable piece of the culture and turns out to be something that many people experience. 9
Culture as a Normal Distribution Italian culture British culture Norms and Values Affective Neutral Source: Adapted to Trompenaars (1993), S. 25 ff. 10
Global leadership 11
Global mindset A local leader can be a global leader, sometimes even more global than colleagues who are working or have been working in a country other than their own. A global organization will not function well as a global organization unless a lot of local people in that organization, wherever they are, think global, seeing the big picture beyond the local picture a secretary or a person scheduling production. These are people who make things work across national border lines, providing an organizational glue which helps to keep the pieces together behind the global heroes who make public statements or sign important contracts. Arne Olsson, Senior HR VP, ABB 12
GLOBE project Global Leadership & Organizational Behavior Effectiveness Robert House (1991) Purpose: Increase understanding of crosscultural interactions and the impact of culture on leadership effectiveness Quantitative methodology Responses of 17,000 managers; 950 organizations; 62 cultures 9 cultural dimensions 7 derived from Hofstede 13
GLOBE project (2) For each of the nine dimensions, items were developed at both the societal and organizational level 2 measures were used for all 9 dimensions: Items phrased in terms of the society or organization as they are Items phrased to evaluate what practices should be enacted in the society or organization Are there uniform beliefs about what makes a leader effective? 14
GLOBE dimensions Nine cultural dimensions 1. Uncertainty avoidance 2. Power distance 3. Institutional collectivism 4. In-group collectivism 5. Gender egalitarianism 6. Assertiveness 7. Future orientation 8. Performance orientation 9. Humane orientation 15
GLOBE dimensions (2) Institutional collectivism In-group collectivism Gender egalitarianism Assertiveness The degree to which an organization or society encourages institutional or societal collective action The degree to which people express pride, loyalty, and cohesiveness in their organizations and families The degree to which an organization or society minimizes gender role differences and promotes gender equality The degree to which people are determined, assertive, confrontational, and aggressive in their social relationships 16
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Universal positive leader attributes Decisive Informed Administratively skilled Just Effective Bargainer Win-win problem solver Plans ahead Honest Dynamic Coordinator Team builder Dependable Excellence oriented Intelligent Source: GLOBE Project 18
Universal negative leader attributes Ruthless Asocial Irritable Loner Egocentric Non-explicit Non-cooperative Dictatorial Source: GLOBE Project 19
Culturally contingent leader attributes Enthusiastic Risk-taking Ambitious Self-effacing Unique Self-sacrificial Sincere Sensitive Compassionate Willful Source: GLOBE Project 20
Global leadership defined The process of influencing the thinking, attitudes, and behaviors of a global community to work together synergistically toward a common vision and common goals. Organizational capacity to draw out the necessary expertise and influence when and where it is needed. 21
The Jack Welch of the future cannot be like me. I spent my entire career in the United States. The next head of General Electric will be somebody who spent time in Bombay, in Hong Kong, in Buenos Aires. We have to send our best and brightest overseas and made sure they have the training that will allow them to be the global leaders who will make GE flourish in the future. Jack Welch 22
Global leadership dimensions Traits and values Global business expertise Global organizing expertise Visioning Crosscultural relationship skills Cognitive Orientation 24
Developing Global Dexterity 25
Working across cultures It is one of the three skills every 21 st century manager needs. (Harvard Business Review Jan/Feb 2012) 26
What is global dexterity? The ability to adapt your behavior smoothly and successfully to the demands of a foreign culture, without losing yourself in the process 27
Three core challenges The Authenticity Challenge The Competence Challenge The Resentment Challenge 28
The Authenticity Challenge When how you have to act in the new culture conflicts with: Your values Your beliefs Your personality 29
The Competence Challenge When you feel incapable of behaving appropriately AND you realize your incompetence is visible to others 30
The Resentment Challenge When you question why you have to adapt in the first place The new behavior feels irrelevant or unnecessary from your cultural perspective You wonder why they can t adapt to you, rather than the other way around 31
Three challenges = Paradox You need to be flexible to adapt, but flexibility is difficult under distress Cultural chameleons can seamlessly blend, but others have to make a conscious effort We have the knowledge about cultural differences - we now need to develop the skills to translate that knowledge into effective behavior 32
Adjustment The U-Curve over time Honeymoon Integration Biculturalism Crisis 6 Months Time Source: Based on Oberg (1960) 33
How do you benefit from going abroad? Biculturalism = Integrative complexity Presenting both sides of the argument and connecting them Creativity Developing a more complex understanding of your environment 34
Developing your Global Dexterity Step 1 Diagnose the New Cultural Code Step 2 Identify your Personal Challenges Step 3 Customize Your Behavior & Perceptions Step 4 Practice Source: Molinsky (2013) 35
Myths and reality of cultural adaption MYTHS The key to effective cultural adaptation is learning about how cultures are different. You can t easily break your own cultural tendencies when adapting cultural behavior. You have to suppress your true nature when adapting to a foreign culture to be effective. REALITY The key to effective cultural adaptation is learning how to change your behavior to account for these differences. Your own cultural tendencies are much more malleable than you thought. You can be yourself and be effective. Source: Molinsky (2013) 36
The Hofstede Field Study Method: Data Collection: 1967-1973 Sample: >100 000 IBM employee value scores from >50 countries Data Analysis: The values that distinguished countries from each other could be grouped statistically into four clusters - the Hofstede dimensions of national culture. Please note: Culture only exists by comparison! The country scores on the dimensions are relative ones - societies are compared to other societies. Without making a comparison a country score is meaningless. 37
The Hofstede Dimensions Power Distance (PDI) Individualism versus collectivism (IDV) Masculinity versus femininity (MAS) Uncertainty avoidance (UAI) Long-term versus short-term orientation (LTO) 38
The Hofstede Dimensions In Detail Individualism Power Distance Uncertainty avoidance Masculinity Long-term orientation The degree to which action is taken for the benefit of the individual or the group. The degree to which inequality or distance between those in charge and the less powerful (subordinates) is accepted. The extent to which people prefer rules, regulations and controls or are more comfortable with unstructured, ambiguous or unpredictable situations. The degree to which we focus on goal achievement and work or quality of life and caring for others. This dimension also tracks the relative masculine and feminine influences in the workplace. The extent to which members of a society are prepared to adapt themselves to reach a desirable future vs. the extent to which they focus on fulfilling their present needs and desires. 39
Power distance 40
Individualism 41
Uncertainty avoidance 42
Germany vs. China 43
High vs. Low Context 44
High vs. Low Context Source: Based on Hall & Hall (1990), Understanding Cultural Differences 45
Developing your Global Dexterity Step 1 Step 2 Step 3 Step 4 Diagnose the New Cultural Code Identify your Personal Challenges Customize Your Behavior & Perceptions Practice Source: Molinsky (2013) 48
Six dimensional approach 1. Directness How straightforwardly you re expected to communicate in this particular situation 2. Enthusiasm How much positive emotion and energy you re expected to display 3. Formality How much deference and respect you re expected to demonstrate 4. Assertiveness How strongly you re expected to express your voice 5. Self-Promotion How positively you re expected to speak about your accomplishments 6. Personal Disclosure How much you re expected to reveal about yourself 49
Example: Networking in India and the U.S. American Networking Indian Networking Enthusiasm High: You are expected to show excitement for a job or company at a networking event Low: American style enthusiasm would be inappropriate for such a serious and formal discussion. Assertiveness Self- Promotion High: You want to be seen as a go-getter. You don t want to appear weak or timid. High: People are expected to promote themselves, within reason. Low: American-style assertiveness is way too aggressive for an Indian setting. Instead, you need to show deference, politeness, and composure. Low: Speaking openly about accomplishments is taboo and comes across as conceited. 50
Factors shaping the cultural code 51
Step 2: Identify Personal Challenges What matters most isn t how much the new rules are different from your culture s rules It s how the new rules differ from your own Personal Comfort Zone Juxtapose your Personal Comfort Zone against the new culture s Zone of Appropriateness to find your level of fit 52
Example: Indian networking in the U.S. Personal Comfort Zone: Self-Promotion 1 2 3 4 5 6 7 Low level Moderate level High level American Zone of Appropriateness 1 2 3 4 5 6 7 Low level Moderate level High level 53
Developing your Global Dexterity Step 1 Step 2 Step 3 Step 4 Diagnose the New Cultural Code Identify your Personal Challenges Customize Your Behavior & Perceptions Practice Source: Molinsky (2013) 55
Step 3: Customization You typically have more leeway than you think to adjust your behavior in a foreign culture. You can make small, but meaningful tweaks in your behavior and in how you think about your behavior. These small tweaks can have surprisingly large effects on your experience and success. 56
Russian pitching to an American Boss Russian Level of Assertiveness 1 2 3 4 5 6 7 Low level Moderate level High level American Level of Assertiveness 1 2 3 4 5 6 7 Low level Moderate level High level 57
Customization strategy (1) American version (expected) I d love to take the lead on that project! Russian modification Could it be helpful if I took the lead on that project? 58
Customize Perceptions Give yourself permission to perform the new behavior Appreciate consistencies between the new behavior and: Your personal goals Your personal values Your cultural values Embrace the new cultural logic 60
Developing your Global Dexterity Step 1 Step 2 Step 3 Step 4 Diagnose the New Cultural Code Identify your Personal Challenges Customize Your Behavior & Perceptions Practice Source: Molinsky (2013) 61
Step 4: Develop muscle memory Practice in realistic settings Get -- and give yourself -- feedback 62
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Overall Goal of Global Dexterity Awkwardness Comfort Inauthenticity Authenticity Frustration Acceptance 65
Can I perform the behavior successfully? NO YES Do I feel authentic performing this behavior? YES NO Comfort Zone Authenticity Challenge Authentic + Competent + Authentic Competent + Ability Challenge Double Challenge Authentic + Competent Authentic Competent 66
Summary and Review Global Dexterity moves beyond merely understanding cultural differences There are three core challenges of developing Global Dexterity: Competence, Authenticity, Resentment You can overcome these challenges through customization: by personalizing the way you act in a foreign setting and by ingraining this new behavior into your personal repertoire. 67
Myths and Reality of Cultural Adaptation MYTHS The key to effective cultural adaptation is learning about how cultures are different. You can t easily break your own cultural tendencies when adapting cultural behavior. You have to suppress your true nature when adapting to a foreign culture to be effective. REALITY The key to effective cultural adaptation is learning how to change your behavior to account for these differences. Your own cultural tendencies are much more malleable than you thought. You can be yourself and be effective. 68
Backup 69