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www.culturematters.com
Chris Smit
Why Culture Matters in Doing Business
April 19, 2023
Culture & Management Consultants
www.culturematters.com
Please Raise Your Hand If…
You think Culture Does NOT Matter
You think Culture DOES Matter
You DON’T know if Culture Matters
2
www.culturematters.com
Who am I ?
Name: Chris Smit Nationality: Dutch“if you ain’t Dutch, you ain’t much!”
House: Windmill
Where: Below sea level
Cloths: Wooden shoes and traditional dress
So… What's
the
So… What's
the
point…?
point…?
www.culturematters.com
About myselfAbout myself
12 years Airline experience
18 years experience International Consulting
Organisational psychologist
Senior consultant Culture Matters
Writer & researcher
One year in USA
Live & work in Belgium
www.culturematters.com
The Things That Really Matter…
Teamwork & Trust
Sharing of Information & Technology
Time to Market
Innovation
Getting the Right People Onboard
Projects Running OnTime
7
www.culturematters.com
…Often Turn Out Different
Little Teamwork & Trust
Limited Sharing of Information & Technology
Delayed Time to Market
Lack of Innovation
High Staff Turnover
Projects Running Over Time
8
www.culturematters.com
What’s it All About?
Understanding Stereo Types
Transforming Knowledge into Empathy
Embracing Diversity as a Source of Strength
Default Behavior & Your Comfort zone
Who Should Adapt to Who?
9
www.culturematters.com
• American ?
What would the Captain of an What would the Captain of an ocean liner say if his ship would ocean liner say if his ship would
have to be abandoned, if he was...have to be abandoned, if he was...
• British ?
• German ?
• Chilean or Greek ? • Dutch or Swedish ? • Italian or Belgian ?
“It’s a Challenge !!!”
“It’s the sporting thing to do…”
“It’s the right procedure…”
“If we don’t jump we’ll lose face…”
“Let’s sit down and talk about it…”
“It’s forbidden to jump…”
www.culturematters.com
18 %
53 %
“It is important for a manager to have at hand
precise answers to most of the questions that
his subordinates may raise about their work”
Percentage
in agreement
United States
France
Reality...
www.culturematters.com
“It is important for a manager to have at hand
precise answers to most of the questions that
his subordinates may raise about their work”Percentage
in agreement
18 %
53 %
UnitedStates
France
www.culturematters.com
Manager's role varies across culturesSource : André Laurent
203040506010 7080 % Percentage in agreement
Great Britain
SwedenNetherlandsUSADenmark
SwitzerlandBelgiumGermanyFranceItalyIndonesiaJapan
17182327
384446
5366
7378
17182327
384446
5366
7378
“It is important for a managerto have at hand precise answers tomost of the questions that hissubordinates may raise about their work”
10
www.culturematters.com
In the narrow sense: “Civilisation”(Art, Science, Education)
In the broad anthropological sense:“Collective programming of the human mind”
2 MEANINGS OF CULTURE2 MEANINGS OF CULTURE
www.culturematters.com
How do we “Measure” How do we “Measure” Culture?Culture?
1.Using different “Layers” of depth or impact
2.Using Numbers or scores
www.culturematters.com
WI
PG
HI
0 50 100
AA
Low High
Low High
Low High
Low High
Value differences between countries can be explained by four dimensions of national culture.
www.culturematters.com
Dealing with hierarchy
hierarchy low being independent hierarchy for
convenience equal rights superiors accessible …
hierarchy high
being dependent hierarchy is
existential privileges superiors
inaccessible …
www.culturematters.com
NL BELGIUM UK NORWAY FRANCE
Which culture scores a) Highest b) Lowest
on HIERARCHY?
www.culturematters.com
Which culture scores a) Highest b) Lowest
on HIERARCHY?
NL
38
BELGIUM
64
UK
38
NORWAY
33
FRANCE
65
www.culturematters.com
Hierarchy We vs I Process/Goals
Anxiety Avoidence
Netherlands 38
Flanders 61
Wallonie 67
Belgium 64
France 65
www.culturematters.com
Business Implications
•“Defending” one’s own territory
•Loyalty conflicts
•Limited delegation or
empowerment
•Time consuming processes
•…
www.culturematters.com
What makes a good neighbour, and how do you respect your neighbour?
Dealing with relationships
www.culturematters.com
Dealing with relationships
"We" cultures
the group: “We” opinion of the group implicit
communication loss of ‘face’, shame relationship oriented …
"I" cultures
the individual: “Self” individual opinions explicit communication loss of self-respect, guilt task oriented …
www.culturematters.com
Which culture is a) the most “I” orientedb) the most “WE” oriented ?
U.S.A. GREECE PORTUGAL BELGIUM NL
www.culturematters.com
Which culture is a) the most “I” orientedb) the most “WE” oriented ?
U.S.A.
90
GREECE
38
PORTUGAL
29
BELGIUM
77
NL
81
www.culturematters.com32
Hierarchy We vs I Process/Goals
Anxiety Avoidence
Netherlands 38 81
Flanders 61 78
Wallonie 67 72
Belgium 64 77
France 65 75
www.culturematters.com
Business Implications
•Individualistic behavior (focus
on me, me, me)
•Limited teamwork
•Following one’s own agenda
•…
www.culturematters.com
“Employee of the Month!!!”
reward or punishment?
Dealing with one's role in society
Consensus & Process Driven
OrDecisive &Goal
Driven ?
www.culturematters.com
Process versus Goals (PG)
Process (PG-)
Sticking your head out is not appreciated (socially, nor materially)
equal consensus sympathy for the loser
Goals (PG+)
Winning is good, and gets you rewarded
Standing competition admiration for winner
www.culturematters.com
Which culture is:
a)the most “Consensus & Process Driven”
seeking
b)the most “Decisive & Goal Driven” ?
NL SWEDEN GERMANY UK BELGIUM
www.culturematters.com
NL
17
SWEDEN
7
GERMANY
67
UK
65
BELGIUM
56
Which culture is:
a)the most “Consensus & Process Driven”
seeking
b)the most “Decisive & Goal Driven” ?
www.culturematters.com41
Hierarchy We vs I Process/Goals
Anxiety Avoidence
Netherlands 38 81 17
Flanders 61 78 43
Wallonie 67 72 60
Belgium 64 77 56
France 65 75 49
www.culturematters.com
Business Implications
•Possibly too much consensus
seeking (e.g. meetings;
changing deadlines/agreements)
•Less focus on quality, more on
end result
•…
www.culturematters.com
Bungee
Jumping:
Certain or
not?
Dealing with UncertaintyDealing with Uncertainty
www.culturematters.com
Anxiety Avoidance
In Germany everything is forbidden, unless it is allowed
In the UK everything is allowed, unless it is forbidden
In France everything is allowed, even if it is forbidden
In the Netherlands everything is tolerated even if it is forbidden
www.culturematters.com
high avoidance (AA+)
Structure, rules, expertise
Security (avoiding the unfamiliar)
Hectic Emotions/passion …
low avoidance (AA-)
Few rules, little structure
Entrepreneurial Stress-free Cool, calm &
collected …
Anxiety Avoidance
www.culturematters.com
Which culture requires a) Most structure and detailb) Least structure and detail?
NL GREECE BELGIUM UK GERMANY
www.culturematters.com
NL
50
GREECE
95
BELGIUM
89
UK
36
GERMANY
68
Which culture requires a) Most structure and detailb) Least structure and detail?
www.culturematters.com48
Hierarchy We vs I Process/Goals
Anxiety Avoidence
Netherlands 38 81 17 50
Flanders 61 78 43 87
Wallonie 67 72 60 93
Belgium 64 77 56 89
France 65 75 49 88
www.culturematters.com
Business Implications
•Conflict avoidance
•Lots of bureaucracy
•Limited innovation
•…
www.culturematters.com
““Everything that irritates us Everything that irritates us
about others…about others…
can lead us to an can lead us to an
understandingunderstanding
of ourselves.”of ourselves.”
Carl Jung
www.culturematters.com
Want to join the debate?
Please visit:
www.culturematters.com
Email: [email protected]: @ChrisSmit
Get the Book: http://culturematters.com/ebook
www.culturematters.com
Chris Smit was born in Amsterdam on March 3, 1963. Midway while attending high school, his family and he moved to the USA for one year, where he attended 8 th grade high school in Boiceville, New York.
After returning to the Netherlands he finished school and went to the Free University in Amsterdam to study Industrial and Organisational Psychology. He graduated in 1993.
While studying Chris joined KLM where he worked for 10 years as a Commercial Sales & Marketing coach and consultant. During that time he spent a lot of time abroad with a particular focus on Europe, South America, the Middle East and Asia.
He joined ITIM|Result in 1999 and developed his international experience as an international business consultant. He is an experienced consultant and coach in intercultural business, and has implemented and consulted projects and run many intercultural and communication seminars throughout the world. Comfortable working at senior levels in organisations, he is known for his dynamic, enthusiastic and participative style as a public speaker, coach and business consultant.
In 2008 Chris founded the company Culture Matters. Working synergistically with a group of professional consultants, he is the Director of Culture Matters.
Chris has extensive experience in managing and motivating a team of professionals, to make them perform and exceed expectations.
His specialities are India, Eastern Europe, Asia, the Middle East and the USA. He is currently living with his Belgian Partner in Belgium.
Chris Smit has several international publications in his name, and a frequent speaker at international business events.