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Riding the Waves of Culture

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					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
                                                                      Realize and
                                                                         Root
                                                                         Root
                                                                      Implement
                                                                       Implement
                                                                  Reconciling Actions
                                                                   Reconciling Actions

                                                 Reconcile
                                                 Reconcile
                                                    Resolve
                                                     Resolve
                                              Cultural Differences
                                               Cultural Differences


                           Respect
                           Respect
                            Appreciate
                             Appreciate
                       Cultural Differences
                        Cultural Differences


          Recognize
          Recognize
     Increase Awareness
      Increase Awareness

                                                                           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 360o feedback                  0.71
 by peers and subordinates



 Correlation between reconciliation and bottom line                    0.69
 business performance in profit centre/budget stream




                                                             Source: 21 Leaders for the 21st Century p429


                                              12




                                                                                                            6
Intercultural Competence Profile – the group




      Average



                            13




What is Culture?




                   Please define culture




                            14




                                               7
A model of culture


          Physical
                                  Language
          contact

     Work ethic                         Food

   Expression
   of emotion                           Meeting style


  Rhythm & Pace                         Architecture


                                   Dress
          Behaviour

                           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               • Flexibility
  • Systems, standards &      • Pragmatic
    rules                     • Make exceptions
  • Uniform procedures        • “It depends”
  • Demanding of clarity      • At ease with ambiguity
  • Letter of the law         • Spirit of the law




                             24




                                                         12
 01/ Universalism
  Friend has no/some right and would not help

   Switzerland                                                                                          97
       Canada                                                                                      93
          USA                                                                                      93
      Sweden                                                                                   92
United Kingdom                                                                                91
      Australia                                                                               91
   Netherlands                                                                                90
      Germany                                                                            87
    Czech Rep                                                                       83
        France                                                            73
     Singapore                                                       69
        Japan                                                        68
       Mexico                                                   64
          India                                       54
        China                                    47
        Russia                              44
        Korea                     37
    Venezuela                32

                  0   20          40                       60                  80                       100

                                       25




 01/ Dilemma: Global versus Local




   Global Standards                                                   Cultural Diversity
    (Critical Mass)                                                  (Differing solutions)




                                       26




                                                                                                              13
       01/ Global versus Local


                                                                               Transnational
Global Standards (Critical Mass)



                                                                                  Centers of
                                                                                  Excellence
                                                                                     (10,10)
                                   “Be like US”
                                      (1,10)



                                                                                     (10,1)

                                                                               Small Nations


                                                                            Multi-Localism

                                                            Cultural Diversity (differing solutions)

                                                             27




       01/ Main Challenges

                              1. Mass-Customization

                            2. Co-Opetition
                               Co-

                            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                                                                  89
    Canada                                                          71
       USA                                                        69
   Denmark                                                      67
Netherlands                                                   65
    Finland                                                  64
   Australia                                                63
         UK                                               61
    Sweden                                                61
     Russia                                              60
  Germany                                          53
       Italy                                      52
 Indonesia                                   44
 Singapore                                 42
     China                                41
    France                                41
     Japan                             39
      India                          37
    Mexico                      32
     Egypt                    30

               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




02/ Dilemma Reconciliation

                        (1,10) Me, Myself and I
                        withholding Information
Individual Motivation




                                                                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

                                        Reward Teams
                                        for Individual
                                        Creativity
Individual Motivation



                                                                 (10,10)



                                                                       AND

                                                                   Reward
                                                                Individuals
                                                            for Team Work




                                                         Team Motivation
                                    37




02/ Main Challenges

        1. Mass-Customization
           Mass-

         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   %
     Japan                                                        74
Hong Kong                                                    64
     China                                             55
      India                                       51
   Canada                                        49
  Denmark                                       48
  Portugal                                     47
   Sweden                                     46
         UK                                  45
       USA                                  43
     Brasil                               40
       Italy                        33
    France                        30
 Argentina                       28
    Russia                  24
     Spain             19
     Egypt            18
    Kuwait          15
               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
   Mass-

2. Co-Opetition
   Co-

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                                                                          91
Netherlands                                                                        91
                                                                                   %
   Denmark                                                                         89
         UK                                                                       88
    Canada                                                                       87
        USA                                                                 82
   Australia                                                           78
      Japan                                                       71
     Mexico                                                      70
   Thailand                                                     69
     Greece                                                   67
    Belgium                                                  66
      Korea                                                 65
 Singapore                                             58
 Venezuela                                        52
     Kuwait                                  47
     Nigeria                                46
      China                  32
               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
                                                                                           (10,10)
                                  Cost cutting                                           Integrated
                                   yourself                                                growth:
 Specific financial performance




                                                                                         Train for
                                                 (1,10)                                    Cost
                                                                                         Cutting



                                                                                           (10,1)




                                                                                 Subsidised
                                                                                  seminar

                                                          Interests in future innovating and learning
                                                                   60




                                                                                                        30
04/ Main Challenges

1. Mass-Customization
   Mass-

2. Co-Opetition
   Co-

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                                                                  76
                                                                                      %
      Australia                                                            69
       Canada                                                         65
            UK                                                  56
       Sweden                                                  54
     Denmark                                              49
     Germany                                         40
   Switzerland                                 34
        France                                33
   Hong Kong                                 32
        Mexico                              31
        Russia                             30
         China                           28
         Japan                          26
        Poland                     21
         Korea                    20
Czech Republic              13
     Argentina             12
         Egypt        4
                  0              20                 40           60              80       100


                                                    66




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