1. Riding the Waves of Culture
Understanding Cultural Diversity in Business
Fons Trompenaars
Valencia 10th April 2008

2. The old MBA paradigm

3. Lets now do it with one line.
We know this right?
Lets now do it with one line.

4. The new MBA paradigm: with ONE line

5. The new MBA paradigm

6. The new MBA paradigm

7. But you have to fold the paper

8. Core Proposition
“Successful leaders have the propensity and competence to help organizations and its teams reconcile dilemmas for better sustainable business performance”

9. This approach leads to concrete and measurable actions…
Realize and Root
Implement Reconciling Actions
Impact
Reconcile
Resolve Cultural Differences
Respect
Appreciate Cultural Differences
Recognize
Increase Awareness
Time

10. Approaching Dilemmas: Navigating Strategic Tensions
To Create Wealth is to Combine
Values that are not easily joined…
Therefore scarce...
Therefore profitable….

11. Some hard evidence…

12. 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 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 21st Century p429

13. What is Culture?
Please define culture

14. A model of Culture
Explicit
Culture
Implicit
Culture

15. About Culture
Is a dynamic process of solving human problems/dilemmas in the areas of…
- Human Relationships
- Time
- Nature

16. What happens to your friend?
01/ The Car Accident
What happens to your friend?

17. 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.

18. 01/ Dilemma: INTEGRITY The top 2 of your corporate values are:
We respect the cultures of others
Please discuss in the context of these values what your answer would be…

19. Universalism versus Particularism Individualism versus Communitarianism Neutral versus Affective Specific versus Diffuse Achievement versus Ascription Sequential versus Synchronic Internal versus External Control 01 02 03 04 05 06 07

20. 01/ Universalism vs Particularism
Consistency
Systems, standards & rules
Uniform procedures
Demand clarity
Flexibility
Pragmatic
Make exceptions
“It depends”
At ease with ambiguity 1

21. Friend has no/some right and would not help
01/ Universalism
Friend has no/some right and would not help 1

22. Universalism versus Particularism
average score

23. Globalism and Localism
01/ Dilemma:
Globalism and Localism
Global Standards (Critical Mass)
Cultural Diversity
(Differing solutions)

24. 01/ Globalize and Localism
Global Standards (Critical Mass)
“Be like US”
Transnational Centers of Excellence
X (10,10)
Small Nations
Multi-Localism
Cultural Diversity (Differing solutions)

25. 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

26. Universalism versus Particularism Individualism versus Communitarianism Neutral versus Affective Specific versus Diffuse Achievement versus Ascription Sequential versus Synchronic Internal versus External Control 01 02 03 04 05 06 07

27. 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.’

28. Percentage opting for Individual Freedom
02/ Individualism
Percentage opting for Individual Freedom 1

29. 02/ Dilemma Reconciliation
The Individual and the Team
Reward
Individual
Performance
Stimulate
Team
Co-operation

30. 02/ Dilemma Reconciliation
The Individual and the Team
Individual Motivation
(1,10) Me, Myself and Withholding Information
Team Motivation

31. 02/ Dilemma Reconciliation
The Individual and the Team
Individual Motivation
Team Mediocrity
Team Motivation

32. 02/ Dilemma Reconciliation
The Individual and the Team
Individual Motivation
(5,5) Go for the Small team
Team Motivation

33. 02/ Dilemma Reconciliation
The Individual and the Team
(10,10)
Individual Motivation
Reward Teams for Individual Creativity AND Reward Individuals for Team Work
Team Motivation

34. 02/ 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

35. Universalism versus Particularism Individualism versus Communitarianism Neutral versus Affective Specific versus Diffuse Achievement versus Ascription Sequential versus Synchronic Internal versus External Control 01 02 03 04 05 06 07

36. 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

37. 03/ Neutral versus Affective
Percentage not expressing emotions overtly 1

38. 03/ Neutral versus Affective
Myers Briggs Type Indicator (MBTI)
DILEMMA
How to select the Right Person?
Myers Briggs Type Indicator (MBTI)

39. 03/ Neutral versus Affective
Emotions in Control

40. 03/ Neutral versus Affective
Emotions in Control

41. 03/ Neutral versus Affective
Emotions in Control
Head in Control
Analysis,
Paralysis
(1,10)
Heart in Passion

42. (10,1) 03/ Neutral Emotions in Control Head in Control Loving Neurotic
Heart in Passion

43. 03/ Neutral (10,10) Emotions in Control Head in Control
Continually checking what your heart communicates
(10,10)
Heart in Passion

44. 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

45. Universalism versus Particularism Individualism versus Communitarianism Neutral versus Affective Specific versus Diffuse Achievement versus Ascription Sequential versus Synchronic Internal versus External Control 01 02 03 04 05 06 07

46. 04/ Specific versus Diffuse
PUBLIC
PRIVATE

47. 04/ Specific versus Diffuse
PUBLIC
PUBLIC
Specific Relationship

48. 04/ Specific versus Diffuse
PUBLIC
PRIVATE

49. 04/ Specific versus Diffuse
No Relationship

50. 04/ Specific versus Diffuse
PRIVATE
PRIVATE
Diffuse Relationship

51. 04/ Encounter Specific and Diffuse
PUBLIC
PRIVATE
PRIVATE
Danger Zone

52. A boss asking to paint his house
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. 1

53. Would not paint the house
04/ Specificity
Would not paint the house 1

54. Specific Financial Performance Diffuse Development of People
From the Balanced to the Integrated Score Card
Specific Financial Performance
Diffuse Development of People

55. From the Balanced to the Integrated Score Card
Integrated growth:
Train for Cost Cutting
Cost cutting yourself
Specific financial performance
Subsidised seminar
Interests in future innovating and learning

56. 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

57. Universalism versus Particularism Individualism versus Communitarianism Neutral versus Affective Specific versus Diffuse Achievement versus Ascription Sequential versus Synchronic Internal versus External Control 01 02 03 04 05 06 07

58. 05/ Achievement versus Ascription
What You Do
Who You Are
STATUS ?

59. 05/ Achievement versus Ascription
Family
Age
Gender
Education

60. 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’

61. 05/ Achievement versus Ascription
Percentage not agreeing with acting as really suits you 1

62. 05/ Achievement versus Ascription
Performance Status
The Servant Leader
Lost democratic leadership
Follow the Leader
Attributed status by seniority or role

64. 05/ 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

65. Universalism versus Particularism Individualism versus Communitarianism Neutral versus Affective Specific versus Diffuse Achievement versus Ascription Sequential versus Synchronic Internal versus External Control 01 02 03 04 05 06 07

66. 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.

67. Past, Present and Future
06/ Time Orientation
Past, Present and Future
FRA
USA
SPA
JPN UK
GER 1

68. Sequential versus Synchronic
06/ Time Orientation
Sequential versus Synchronic
1.45
Sequential
3.00
Synchronic 1

69. Sequential versus Synchronic
06/ Time Orientation
Sequential versus Synchronic
JUST IN TIME 1

70. 06/ 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

71. Universalism versus Particularism Individualism versus Communitarianism Neutral versus Affective Specific versus Diffuse Achievement versus Ascription Sequential versus Synchronic Internal versus External Control 01 02 03 04 05 06 07

72. 07/ Internal versus External Control
Internal Control
Nature as a mechanism
Dominance over nature
External Control
Nature as an organism
Subjugation to nature

73. 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.

74. 07/ Internal versus External Control
What happens to me is my own doing 1

75. From the Balanced to the Integrated Score Card
Balanced Score Card Dilemma…

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

77. Pushing through the Pull
Integrated growth:
Pushing through the Pull
Lean but mean
Inner directed improvements
Customer’s creature
Outer directed increase in customer satisfaction

78. 07/ 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

79. Dilemma Theory Resolving Strategic Issues
(from the Greek meaning)
TWO-PROPOSITIONS IN (APPARENT) CONFLICT

80. Either - Or

81. And - And

82. Through - Through

83. Integrate central with decentral

84. Vicious and Virtuous Circles

85. To download this presentation: Go to www.thtconsulting.com
Thank You !
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Fons Trompenaars
Valencia 10th April 2008