70% of failures are directly due to “soft factors” .

70% of failures are directly due to

“soft factors”.

How do people understand one

another when they don’t share a

common cultural experience?

Americans and Germans?

Similarities

• Anglo-Saxon background

• monochronic

• direct and honest

• being on time

• competitive and practical

The Trap

of Similarity

Wal-Mart’s billion euro

fiasco in Germany

arrogance and ignorance

managers culturally naïve, simple-minded

driven by “time is money”

didn’t create enough economies of scale

The unconscious

projection of values

is the source of cultural mishaps.

The Cardinal Rule

Understanding oneself

and one’s own culture

Who understands others as well as oneself will be granted success in a thousand encounters.

3000 year-old Chinese proverb

“Culture hides more than it reveals and strangely

enough what it hides, it hides most effectively from

it’s own participants.

Years of study have convinced me that the real job is

not to understand foreign culture but to understand

our own.”

Edward Hall

Culture ?

Life style of a people, I.e. the learned and shared patterns of beliefs, behaviors and values of a group of interacting people. (Bennett)

Culture is the collective programming of the mind. (Hofstede)

Culture is the water we live in. It surrounds us and defines us. (Chinese definition)

“We hold these truths to be self-evident, that all

men are created equal, that they are endowed by

their Creator with certain unalienable rights, that

among these are life, liberty and the pursuit of

happiness.”

The Declaration of Independence, 1776

How do they affect you now?

Think about your own culture

How did socialization take place in your own life?

Try to recall some of the behaviors and values you were taught early in life.

Culture is to us

what water is to a fish.

Culture is like an iceberg

observable

Not observable

• Manners

• Clothes

• Food

• Newspapers, books

• Monuments

• Rituals, festivals

• History

• Friendship

• Time and space

• Negotiation style

• Communication style

• Solutions to problems

Observable Not observable

Everything is relative — no right

or wrong solutions

Intercultural

communications

Understanding the inner logic

of a culture

Cross-cultural success

3. They practice role reversal (empathy)

Attempt to understand an international situation through the eyes of others.

1. They “know that they don’t know”

Assume difference until similarity is proven, not the other way around.

The Four Secrets of Effective Global Managers

2. They emphasize description

Observe what is actually said and done rather than interpreting or evaluating.

4. They treat explanations as guesses, not as certainty.

Check with colleagues from home and abroad if guesses are plausible.

• mental viewing of how something might be

• not meant to be exact

Definition of a

theory

Serious Easy-going

German American (Ger) (Am)

1 Ger stereotype 3 Ger exception

2 Am exception 4 Amr

stereotype

Hofstede’s

Dimensions

• Individualism / collectivism

• Respect toward hierarchy

• Desire for structure

• Masculinity / femininity

• “we” society

• group identity

• important: harmony

• relations over tasks

• extended family

• “me” society

• self-identity

• important: pro-active

• tasks over relations

• success of individual

Collectivism Individualism

0 20 40 60 10080

KOR

SING

PORT

GRE JAP

GB

USA

NETH

CAN

ITA

PL

FRA

GER

Collectivism Individualism

SLO

• Inequalities not OK

• Privileges/status not OK

• Boss democratic

• Flat hierarchy

• Staff gives advice

• Inequalities OK

• Privileges/status OK

• Boss paternalistic

• Strong hierarchy

• Staff follows orders

Less Hierarchy More Hierarchy

0 20 40 60 10080

NETH

GB

GER

USA ITAJAP

GRE

POR

FRA

PL

SIN

SLOSWE

Less Hierarchy More Hierarchy

SPA

• Uncertainty O.K.

• Willing to take risks

• Non-orderly situations

• Hope for success

• Rational generalists

• There must be order

• Many rules

• Consensus

• Desire for security

• Experts und knowledge

Less Structure More Structure

0 20 40 60 10080

CAN

SWE GB

KORSIN

USA

NETH GER ITA

SLO PL

SPA

FRA

JAP

GRE

Less structure More structure

POR

Should a manager have precise

answers to subordinates’ questions?

Should a manager have precise

answers to subordinates’ questions?

NETH USA

23% 28%

CH BEL GER FRA ITA JAP

Yes:17% 18%

DEN GB

38% 44% 46%53%

66%78%

Understanding new behavior

D = detect

I = interpret

E = evaluate

American meetings

• An informal, relaxed attitude

• Confident, positive approach

• Brainstorming

• Come to the point quickly

• Active participation

• Give credit for others’ achievements (piggyback)

Working on Projects Germans Americans Americans Germans tend to…. tend to think tend to…. tend to think

PROJECT ...collect “Why are they …chat informally “Why aren’t theyIDEA information doing this?” about an idea doing anything?”

PROJECT …get down to “They are cold and …begin with small “They are wastingMEETINGS business unfriendly.” talk time.”

…present detailed “How can they …begin with“ They are not plans discuss the details brainstorming prepared for the at this stage?” meeting.”

…express criticism “They don’t like …be enthusiastic “They are not openly each other.” about all the ideas sincere.”

PROJECT …work individually “They don’t …hold frequent “They are tooPROCESS on the tasks communicate or meetings; change many meetings; we

assigned to them work as a team.” tasks as circum- can’t get our workstances change done.”

believe clearly …believe continuous defined milestones contact guarantees guarantee success coordination

Cognitive Styles of Germans and AmericansInteraction with reality, extracting, organizing and applying knowledge

BASIC Germans AmericansOUTLOOK tend to be more cautious, conceptual tend to be more optimistic, pragmatic

OPENING Do we really need…? Can we have…?QUESTION

ACQUIRING Structured way of knowing Hypothesis, testing way of knowingKNOWLEDGE Want solid theories, coherence Speculate with probabilities, risk taking

Deductive: acting on the basis of one’s Inductive: understanding a situation throughthorough understanding of the situation experimentation

Declarative thinking: focusing on Procedural thinking: focusing on how to getdescription and explanation of situation things done

Gather information from experts, logical Active experimentation: learn from peers,analysis of ideas brainstorming, “think out of the box”

Importance of background information Importance of measurement data, and facts(historical context, “Zeitgeist:, sociology) (how tall, how much, statistics, etc.)

APPLYING Development of strategic analysis Ability to get things doneKNOWLEDGE Systematic planning Trial and error, learn by doing, can do

Decisions are binding Decisions are guidelines

• Good working atmosphere

• Care for others

• Harmony

• Solidarity

• Modesty

• People over materialism

• Performance

• Polarization

• Assertive

• Competitive

• Displaying success

• Materialism over people

Femininity Masculinity

0 20 40 60 10080

SWE SPA

FRA

PL

GBUSA

GERNETH

KOR

SIN

CAN SLOITA

JAP

Femininity Masculinity

GREPOR

Culture is communication

Edward Hall

Hall’s

Definition

Culture determines the style of

communication:

indirect or direct

• Explicit

• Context not important

• Thinking-focused

• Result-oriented

• Masculine

• Implicit

• Context important

• Feeling-focused

• Relationship-oriented

• Feminine

Direct (low context) Indirect (high context)

0 20 40 60 10080

CH

ITAPL

FRAGER SPA

GB

NETH

USA JAP

Direct Indirect

German directness British indirectness

Jürgen wird an die Decke springen. Jürgen might tend to disagree.

Kommen wir gleich zur Sache. I was wondering if could talk.

Du sagst nur Blödsinn. I am not quite with you on that.

Das kann nicht wahr sein. Hm, that’s an interesting idea.

Wir werden dies nie unterschreiben. We’ll have to do our homework.

• One activity at a time

• Schedules very important

• Task-oriented

• Linear

• Punctual

• Parallel activities

• Plans are changed

• Relationship-oriented

• Interruptions

• Punctuality unimportant

Monochronic Polychronic

0 20 40 60 10080

CH

ITAPL

FRAGER

SPAGB

NETH

USA JAP

Monochronic Polychronic

Lesson to be learned

• US-German communication and co-operation

might not be as simple as it appears —

especially for Germans

Why do we

stereotype?

Natural impulse to categorize

when reality is too complex to handle.

Why do we

stereotype?

• consciously aware it’s a group norm

• descriptive and not evaluative

• modifiable

Stereotypes are

helpful when:

Cross-cultural perceptions

• unstructured

• energetic

• first-name

• seem happier

• overly self-confident

• narrow perspective of world

• process-oriented

• specialized, expert

• systematic, orderly

• precise, data-oriented

• too formal

• direct

perceptionof Germans

perceptionof Americans

Visitors’ perceptions of Germans

• perfectionist

• slow to get to know

• meticulous about deadlines

• systematic, orderly

• fair to a fault

• eager to do right

• excessively detailed

• standoffish

• pushy

• stubborn

• obsessed with rules

• afraid of making mistakes

Those who don’t speak German

Those who speak German

Cultural Perception

Americans are

According to Brazilians

Serious

Reserved

Introvert

Cautious

Restrained

Composed

Methodical

According to Chinese

Friendly

Spontaneous

Extrovert

Reckless

Uninhibited

Emotional

Impulsive

?

Attitudes for better intercultural communications

Tolerance for ambiguity

Low goal/task orientation

Non-judgmental

Flexibility

Sense of humor

Warmth in human relationships

Strong sense of self

Ability to fail

Open-mindedness

Empathy

Communicativeness

Curiosity

Motivation

Self-reliance

Perceptiveness

Tolerance to differences

Differences between German and American presentation styles?

American Presentation

• start with a “big bang” (hook them)

• show them how they can profit from the talk

• emphasize entertainment aspect — jokes, anecdotes

• conclusion is often enthusiastic, visionary

–— guaranteed to be a success!

• audience-centered and interactive

–— lots a smiles, speaker wants to be socially accepted

Deduct

ive

Germ

an A

pproac

h Inductive American Approach

Major Point

Background Information

Proof

Proof

ProofFact

Fact

Fact

Deductive and Inductive Thinking

Presentations styles

• Focused on listener

• Enthusiastic, optimistic

• Inductive

• Benefit orientation

• Showman’s effects

• Use of personal examples

• Get to the point

• Easy-to-remember statements

• Focused on content

• Start with straight introduction

• Factual (sachlich)

• Deductive

• Clear transitions

• Distant through formality

• Serious (bestimmt auftreten)

• Detailed explanations

QuickTime™ and a decompressor

are needed to see this picture.

Communication

Exchanging ideas,

feelings, symbols, meanings

to create commonality

Misunderstandings:

Interpreting

“foreign behavior”

in terms of our own culture

The Cardinal Rule

Understanding oneself

and one’s own culture

Communication

breaks down —

people build up barriers

us versus them

Good, intercultural

communication is not just good

intentions.

Receiver’s perception

determines the real message,

not the one we send.

The greatest barrier

is culture, not language.

• Natural and simple

• Takes places in one’s culture

Communication

80% – 90% of information:

“non-verbal” signals

Perception is

• selective

• learned

• culturally determined

• consistent

• inaccurate

Why we don’t seeobjectively

ONCE

IN A

A LIFETIME

PARIS

IN THE

THE SPRING

BIRD

IN THE

THE HAND

Communication Styles

QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this p icture.

Communication styles

• emphasizing content

• downplay relationships

• appearing credible

• being objective

• accentuating content

• accentuating personal

• being liked

• being socially accepted

• direct in stating

• more upgraders

• more modal verbs

• more imperative

• direct in expressing

• more downgraders

• more conditionals

• more questions

Credibility Likeability

• Complicated

• Over analytical

• Formal und detailed

• Objective

• Wants to be creditable

• Simple

• Short and concise

• Informal

• Friendly and easy going

• Wants to be liked

The German Desire for Clarity

“Jetzt werde ich mit ihr

deutsch reden müssen” (Klartext)

The German adjective deutlich (clear, plain) and the German verb

deuten (explain, interpret) have the same linguistic roots to the word

Germans use to refer to themselves and their language — deutsch.

Do’s

• Look for common opinions

• Focus on the results

• Use simple language

• Expect fewer details

• Be less direct

• Listen non-verbally and participate

• Expect agreement

Don’ts

• Forget to repeat

• Tell ethnic jokes

• Forget the small talk

• Expect critical feedback

• Be irritated by interruptions

• Hesitate to ask questions

• Be so critical

Communicating with Americans

U.S. negotiating style

Americans tends to

• make a small talk at the beginning

• look more at strengths & weaknesses of others than issues

• maximize benefits to themselves than “best” solution for all

• create a friendly, personable atmosphere

The typical U.S. negotiator

QuickTime™ and a decompressor

are needed to see this picture.

always keeps a poker-face

Experience of Difference

Denial

Defense

Mini

miza

tion

Accep

tanc

e

Adaptatio

n

Inte

grat

ion

Ethnocentric Stages Ethnorelative Stages

Milton Bennett’s

Developmental Model of Intercultural Sensitivity

Denial

• one’s culture is the only real one

• unable to construe cultural difference

• aggressive ignorance

• “Munich — lots of buildings, too many cars, McDonalds”

Defensive

• one’s culture is the only good one

• “we” are superior — “they” are inferior

• highly critical of other cultures

• “Americans are superficial and uncultivated”

Minimization

• one’s culture is viewed as universal

• obscure deep cultural differences

• insistently nice

• “We bankers are all the same all over the world.”

Acceptance

• one’s culture is viewed as one of many complex systems

• judgment is not ethnocentric

• curious about cultural differences

• “I want to learn German so I can understand Hans better.”

Adaptation

• internalize more than one complete worldview

• empathy

• may intentionally change behavior to communicate better

• “I’m beginning to feel like a member of this culture.”

Integration

• one’s self is expanded to include different worldviews

• cross-cultural swinger

• ability to facilitate contact between cultures

• “I truly enjoy participating fully in both of my cultures.”

• No longer attached to original cultural group

• Relativity of values

• Cross-cultural swinger

• Multi-lingual

• Other-culture awareness

Intercultural competence

Understanding others…

Understanding others doesn’t consist of only appealing to logic and reason. It consists of an emotional opening to the others

Jawaharlal Nehru