Cross-cultural Differences in Getting Agreement

Karen S. Walch, Ph.D.

Global mobility and Cultural drift

• Recognize global changing ‘center of gravity’ • Adapt to speed, volume, magnitude and dynamic

change• Problem solve with lack of predictability of issues and

events• Manage mixed meaning and values of fairness and

trust• Expand negotiation and performance through

increased mindfulness and flexibility where cultural gaps exist

“The Shifting Economic Center of Gravity…”1Calculated by weighting national GDP by each nation’s geographic center of gravity; a line drawn from the center of the earth through the economic center of gravity locates it on the earth’s surface. For detailed analysis, see Richard Dobbs et al., Urban World; Cities and the Rise of the Consuming Class, McKinsey Global Institute, June 2012, pp. 61-72.Source: University of Groningen; McKinsey Global Institute analysis of data compiled by Angus Maddision

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The Cultural Orientations Approach

We live in interesting timesPopulation

estimate in 2050 is 9.6B,

previously 7.2B

Faces of the Future, The Economist, June 2013

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The Cultural Orientations Approach

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The Cultural Orientations Approach

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The Cultural Orientations Approach

Individual Culture

Team CultureNational / Societal Culture

Functional Culture

Identity Group Culture

Organizational Culture

The six levels of culture …

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The Cultural Orientations Approach

Culture

Values

Beliefs & Assumptions

Emotions

Behaviour

Norms

Short Definition:What is expected, reinforced and rewarded by and within a particular group.

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Values Drive Behavior

Evaluate: Emotion

Describe: Observable Behavior

Interpret: Cognition

* The Iceberg Model* Edgar Schein, MIT

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NEGOTIATION: Basic means of getting what you want from others.

Negotiation

• Two or more parties must make decisions about their interdependent goals

• There is no clear/established method for making this decision.

Is Time Fixed or Fluid ?

Fixed• Precise definition of punctuality; time

determines actions

Fluid• Loose definition of punctuality; actions

determine time

How do Focus on Accomplishing Tasks?

Being• Relationship-centered; focus on

establishing personal, trusting relationships; emphasis on contemplation and reflection

Doing• Task-centered; focus on accomplishing

tasks; emphasis on action

Thinking Style

Orientations that impact how people tend to process information in work situations

How do you Focus on taking in information?

Single-Focus• Concentration on one task at a time; high

commitment to schedules

Multi-Focus• Concentration on multiple tasks and/or relationships simultaneously

How much context or cues beyond verbal to you need?

High Context• Reliance on implicit and tacit communication of

meaning

Low Context• Reliance on explicit and precise communication

of meaning

Linear• Focus on the analysis of individual components

and points rather than the whole

Systemic• Focus on the big picture and causal connections

Do you start with the big picture or with the details?

Sense of Self

Orientations that impact how people tend to view identity and motivation in work situations

How do you structure power relationships?

Hierarchy• Expectation of social stratification and

differentiated power structure

Equality• Expectation of minimized social stratification

and egalitarian power structures

What is your tolerance for ambiguity and uncertainty

Order

• Emphasis on rules and procedures; value placed on predictability and the minimization of ambiguity

Flexibility

• Emphasis on improvisation; value placed on risk-taking and tolerance for ambiguity

• http://www.youtube.com/watch?v=4phFYiMGCIY&feature=related

Example ApplicationsCross-functional

collaborationNegotiating

inclusive normsInfluencing in a global matrix

1. Shifted Regional Cultural Preferences to Global Cultural Thinking

2. Decreased Cultural Mishaps and Increased Positive Team and Rapport

3. Enhanced “Style Switching” Abilities and Empathy

4. Increase in “Cultural Dialogue”

Inclusive workplace >

Increased bid win rate

1. Applied COA to map their experience and respective functional norms

2. Implemented a cross-functional workout based on the principles of “Cultural Dialogue” to define new norms and commitments

1. Assess their social network and critical relationships

2. Identified cultural gaps

3. Develop and style-switching strategies peer coaching

4. Track and continuously improve through peer coaching

Shorter product development

cycles

Improved individual

leadership acumen

KEY TAKE AWAYS• Do Cultural due diligence:

• Assess and prepare for the positive effects of culture in preparation for a venture or engagement.

• Practice Style Switching:• Use a broad and flexible repertoire behavioral skills

depending upon the given situation.• Lead Cultural Dialogue and Mentoring:

• Close cultural gaps and create cultural synergy through advising, conversation and learning from others.

Grazie! Tak! Merci! Toa chie! Arigato! Spasiba! Thank you!

Gracias! Go maith! Dankeshoen!

Gmadlob! Dank je! Shukran!

Dziakuju! Do jie! Tashakkur!

Sayol! Diolch! Dakujem! Xie Xie!