fons trompenaars understanding cultural diversity in business riding the waves of culture valencia...

Fons Trompenaars

Understanding Cultural Diversity in Business

Riding the Waves of Culture

Valencia 10th April 2008

The old MBA paradigm

3Trompenaars Hampden-Turner

We know this right?

Lets now do it with one line.


The new MBA paradigm: with ONE line


The new MBA paradigm


But you have to fold the paper


“Successful leaders have the propensity and

competence to help organizations and its teams

reconcile dilemmas for better sustainable business

performance”

Core Proposition

This approach leads to concrete and measurable actions…Im

pac

t

Time

RecognizeIncrease Awareness

RecognizeIncrease Awareness

Respect Appreciate

Cultural Differences

Respect Appreciate

Cultural Differences

ReconcileResolve Cultural

Differences

ReconcileResolve Cultural

Differences

Realize and RootImplement

Reconciling Actions

Realize and RootImplement

Reconciling Actions


To Create Wealth is to Combine

Values that are not easily joined…

Therefore scarce...

Therefore profitable….

Approaching Dilemmas: Navigating Strategic Tensions


Some hard evidence…


Source: 21 Leaders for the 21st Century p429

Correlation

(Spearman’s coefficient of rank correlation)

Correlation between reconciliation and 360o feedback by peers and subordinates

0.71

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

0.69

Our research reveals that propensity to reconcile dilemmas

correlates with bottom line business performance


What is Culture?

Please define culture


A model of Culture

Implicit Culture

Explicit Culture


Is a dynamic process of solving human problems/dilemmas

in the areas of…

- Human Relationships

- Time

- Nature

About Culture


01/ The Car Accident

What happens to your friend?


01/ What Right has Your Friend?

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.


01/ Dilemma:

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…

INTEGRITY

01

02

03

04

05

06

07

Universalism versus Particularism

Individualism versus Communitarianism Individualism versus Communitarianism

Neutral versus AffectiveNeutral versus Affective

Specific versus DiffuseSpecific versus Diffuse

Achievement versus AscriptionAchievement versus Ascription

Sequential versus SynchronicSequential versus Synchronic

Internal versus External ControlInternal versus External Control


01/ Universalism vs Particularism

• Consistency

• Systems, standards &

rules

• Uniform procedures

• Demand clarity

• Flexibility

• Pragmatic

• Make exceptions

• “It depends”

• At ease with ambiguity


44

47

54

61

73

74

75

83

85

87

88

90

91

92

92

93

97

0 20 40 60 80 100

RussiaChina

BulgariaGreeceFrancePoland

SpainCzech Republic

HungaryGermanyRomania

NetherlandsUK

SwedenIreland

USASwitzerland

01/ Universalism

Friend has no/some right and would not help


79 78 76 7464 63

53 53

0

20

40

60

80

100

120

Universalism

LGL

HR

FIN

R&D

ADM

MFG

PA

MKT

Universalism versus Particularism

average score


01/ Dilemma:

Global Standards (Critical Mass)

Cultural Diversity (Differing solutions)

Globalism and Localism


01/ Globalize and Localism

X(10,10)

Global Standards (Critical Mass)

“Be like US”

Transnational Centers of Excellence

Cultural Diversity (Differing solutions)

Small Nations

Multi-Localism


01/ Main Challenges

1. Mass-Customization

2. Co-Opetition2. Co-Opetition

3. It is Cool to be Emotional3. It is Cool to be Emotional

4. Moments of Truth4. Moments of Truth

5. Servant Leader5. Servant Leader

6. Just In Time Synchronizing Sequences6. Just In Time Synchronizing Sequences

7. Pushing through the Pull7. Pushing through the Pull

Universalism versus ParticularismUniversalism versus Particularism

Individualism versus Communitarianism






01

02

03

04

05

06

07


02/ Individualism versus Communitarianism

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.’

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.’


4144

4650

525354

5759606061

63646566676869

81

0 20 40 60 80 100

FrancePortugal

GreeceIreland

ItalyGermany

NorwayBelgium

PolandRussia

SwedenUK

SpainFinland

NetherlandsSwitzerland

DenmarkCzech

USARomania

02/ Individualism

Percentage opting for Individual Freedom


Reward Individual

Performance

Stimulate Team

Co-operation

02/ Dilemma Reconciliation

The Individual and the Team

Individual Motivation

Team Motivation

(1,10) Me, Myself and Withholding

Information



Team Motivation

Team Mediocrity




(5,5)

Go for the Small team

Team Motivation




Reward Teams for Individual

Creativity

AND

Reward Individuals

for Team Work

Team Motivation

(10,10)





1. Mass-Customization1. Mass-Customization

2. Co-Opetition






02/ Main Challenges

01

02

03

04

05

06

07

Universalism versus Particularism Universalism versus Particularism

Individualism versus CommunitarianismIndividualism versus Communitarianism

Neutral versus Affective






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) Be undecided

d) Disagree

e) Strongly disagree



1924

29

3032333435

38394041

4344

45464647

50

5970

0 20 40 60 80 100

SpainRussiaIrelandFrance

SwitzerlandItaly

DenmarkGermany

GreeceNorway

BelgiumFinland

USACzech

UKNetherland

SwedenPortugalBulgariaAustriaPoland

Percentage not expressing emotions overtly



How to select the Right Person?

Myers Briggs Type Indicator (MBTI)

Myers Briggs Type Indicator (MBTI)

DILEMMA



Emotions in Control



Head in Control

Heart in Passion

Analysis,Paralysis

(1,10)

Emotions in Control


03/ Neutral

(10,1)

Loving Neurotic

Head in Control

Heart in Passion

Emotions in Control


03/ Neutral

Continually checking what

your heart communicates

(10,10)

Head in Control

Heart in Passion

Emotions in Control




3. It is Cool to be Emotional





03/ Main Challenges

01

02

03

04

05

06

07




Specific versus Diffuse





04/ Specific versus Diffuse

PUBLIC

PRIVATE



PUBLIC PUBLIC

Specific Relationship



PUBLICPRIVATE



No Relationship



Diffuse Relationship

PRIVATEPRIVATE


04/ Encounter Specific and Diffuse

PUBLIC

PRIVATE

Danger Zone

PRIVATE


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.

04/ Specificity

A boss asking to paint his house


6567

7173

7680

82838384

888889898989909191

0 20 40 60 80 100

AustriaGreece

SpainPortugal

PolandNorway

USABelgium

GermanyIrelandFrance

UKBulgaria

CzechDenmark

FinlandSwitzerlandNetherland

Sweden

04/ Specificity

Would not paint the house


Specific Financial Performance

Diffuse Development of

People

From the Balanced to the Integrated Score Card


Sp

ecif

ic f

inan

cial

per

form

ance

Integrated growth:

Train for Cost

Cutting

Cost cutting yourself

Interests in future innovating and learning

Subsidised seminar






4. Moments of Truth




04/ Main Challenges

01

02

03

04

05

06

07





Achievement versus Ascription




05/ Achievement versus Ascription

STATUS ?

What You Do Who You Are



• Family

• Age

• Gender

• Education



‘The most important thing in life is to

act as really suits you, even if you

don’t get things done’


1313

16192021

2527

30333334

394041

4954

5665

77

0 20 40 60 80 100

Czech RepublicSpain

BulgariaHungaryRomania

PolandAustriaGreece

NetherlandsFrance

ItalySwitzerland

PortugalGermany

FinlandDenmark

SwedenUK

IrelandNorway


Percentage not agreeing with acting as really suits you



Attributed status by seniority or role

Performance Status

Lost

democratic

leadership

Follow the

Leader

The Servant

Leader






5. Servant Leader



05/ Main Challenges

01

02

03

04

05

06

07






Sequential versus Synchronic



06/ Time Orientation

Think of the past, present and future as being in the shape of circles.

Please draw three circles representing past, present and future.

Arrange these circles in any way you want that best shows how you

feel about the relationship of the past, present and the future. You

may use different size circles.



1.45 3.00

1.45 - 2.00

Sequential

Synchronic3.00 - 3.15




JUST IN TIME








6. Just In Time Synchronizing Sequences


06/ Main Challenges

01

02

03

04

05

06







Internal versus External Control

07


07/ Internal versus External Control

Internal Control

Nature as a

mechanism

Dominance over

nature

External Control

Nature as an organism

Subjugation to nature



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.


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6266666768

70717272

7475757676777777

86

0 20 40 60 80 100

BulgariaCzech

PortugalGermanPolandGreeceFinlandRomaniSwedenBelgium

ItalyDenmarAustria

NetherlaFrance

SpainIreland

SwitzerlUK

Norway


What happens to me is my own doing


Balanced Score Card Dilemma…



Inner Directed Improvements

in Business Processes

Outer directed increase in customer satisfaction



Inn

er d

irec

ted

im

pro

vem

ents

Integrated growth:

Pushing through the

Pull

Outer directed increase in customer satisfaction

Lean but mean

Customer’s creature








7. Pushing through the Pull

07/ Main Challenges


Dilemma Theory Resolving Strategic Issues

DILEMMA(from the Greek meaning)

TWO-PROPOSITIONS IN (APPARENT) CONFLICT


Either - Or


And - And


Through - Through


Integrate central with decentral


Vicious and Virtuous Circles

Thank You !

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Go to www.thtconsulting.com

Password = space2008

Fons Trompenaars

Valencia 10th April 2008

fons trompenaars understanding cultural diversity in business riding the waves of culture valencia...

Documents

team slide

line slide

integrity slide

ambiguity slide

paper slide

individual freedom slide

fons trompenaars

new mba paradigm slide