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

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

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

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

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

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 &

• Uniform procedures

• Demand clarity

• Flexibility

• Pragmatic

• Make exceptions

• “It depends”

• At ease with ambiguity

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

Universalism

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

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.’

525354

5759606061

63646566676869

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

Go for the Small team

Team Motivation

Reward Teams for Individual

Creativity

Reward Individuals

for Team Work

Team Motivation

(10,10)

1. Mass-Customization1. Mass-Customization

2. Co-Opetition

02/ Main Challenges

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

3032333435

38394041

45464647

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)

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

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

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

Integrated growth:

Train for Cost

Cutting

Cost cutting yourself

Interests in future innovating and learning

Subsidised seminar

4. Moments of Truth

04/ Main Challenges

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’

16192021

30333334

394041

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

democratic

leadership

Follow the

Leader

The Servant

Leader

5. Servant Leader

05/ Main Challenges

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

Internal versus External Control

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.

6266666768

70717272

7475757676777777

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

Integrated growth:

Pushing through the

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 !

To download this presentation:

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 10 th April 2008.

team slide

line slide

integrity slide

ambiguity slide

paper slide

individual freedom slide

fons trompenaars

new mba paradigm slide

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