Top Banner
ADAPT YOUR STRATEGY TO THE BRAZILIAN CULTURE Jérôme Kelber
29

NeoFocus - Adapt your strategy to the Brazilian culture

Nov 11, 2014

Download

Business

Jerome Kelber

Discover how to adapt your strategy to the cultural environment of Brazilian companies, in a pragmatic and efficient way!

Many European companies entering the Brazilian market are misled by the apparent similarities of the two cultures, which derive from the the historical links between the two régions.
The success of any project, and even more intercultural ones, result from mutual understanding, effective communication and lasting relationships based on mutual trust. But the cultural environment directly affects communications, actions and individual or collective decisions.
We use a 5 dimension model to measure the cultural differentiations between the two cultures, based on the most successful model to date. Significant différences between the two cultures create gaps that need to be breached with corrective actions.
Take a look at our presentation or get in touch with us!

Presentation given at the French Senate, for a conference on Latin America organized by Ubifrance
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: NeoFocus - Adapt your strategy to the Brazilian culture

ADAPT YOUR STRATEGY TO THE BRAZILIAN CULTUREJérôme Kelber

Page 2: NeoFocus - Adapt your strategy to the Brazilian culture

© NeoFocus Strategy Consulting – All rights reserved

DISCLAIMER

Adapt your strategy to the Brazilian culture - 20121108

This presentation was prepared exclusively for the benefit and use of its intended recipient. Under no circumstances whatsoever this document, or any part of this document, should be communicated to third parties or copied without the prior written consent of NeoFocus.

The concepts and tools presented in this presentation are derived from our expertise and are proprietary to NeoFocus. We require the recipient to commit to keep them strictly confidential. The acceptance of this presentation is an explicit commitment to maintain such level of confidentiality.

NeoFocus has not assumed any responsibility for the independent verification of any of the information set forth in this presentation. The examples and data presented in this document are from internal NeoFocus sources, public sources, interviews, or strictly illustrative. Although they have been collected with all the necessary professional care, they represent the best of our knowledge: in particular NeoFocus does not guarantee the accuracy or exhaustiveness of its estimates. Comments and preliminary views on market conditions hereafter presented or referred to in this document were performed on the basis of limited information and in specific market conditions that by nature are subject to changes. Nothing contained in this document is a promise or a representation of the future or should be relied upon as being so.

NeoFocus does not make any express or implied representation or warranty as to the accuracy or completeness of the information contained in, or for any omissions from, this presentation. By receipt of this presentation, the recipient agrees that NeoFocus shall have no liability which may be based on such information, errors therein or omissions there from.

This presentation is incomplete without reference to, and should be viewed solely in conjunction with, the oral briefing provided by NeoFocus.

2

Page 3: NeoFocus - Adapt your strategy to the Brazilian culture

© NeoFocus Strategy Consulting – All rights reserved

Agenda

Adapt your strategy to the Brazilian culture - 20121108

1. Introduction 4

2. Adapt communication to another culture 8

3. Understanding fundamental cultural differences 13

4. Adapt to a fast changing society 21

5. NeoFocus Strategy Consulting & the speaker 23

Introduction Communication Differences Changes

Page

NeoFocus

3

Page 4: NeoFocus - Adapt your strategy to the Brazilian culture

© NeoFocus Strategy Consulting – All rights reserved

Many European companies entering Brazil are mislead by apparent similarities resulting from strong historical links between the two regions

Adapt your strategy to the Brazilian culture - 20121108

Trading

Colonization16th century

Migration20th century

Slave trade16th century

Colonization16th century

Migration20th century

Colonization17th century

Colonization17th c..

Apparent similarities

• Language: Portuguese

• Latin culture

• Catholic country (over 85%)

• Independent since 07th September 1822

• Federal republic since 15th November 1889

Introduction Communication Differences Changes NeoFocus

4

Page 5: NeoFocus - Adapt your strategy to the Brazilian culture

© NeoFocus Strategy Consulting – All rights reserved

One of the keys to a successful project is the cohesion between individual stakeholders, which derives from mutual understanding, efficient communication, and construction of a durable relationship based on mutual trust

Adapt your strategy to the Brazilian culture - 20121108

Build

Leveraging points of convergence between individuals and teams while explaining and defusing points of divergence generates openness and mutual trust between individuals

Understand

In a cross-border context, understanding what drives the interlocutor and the constraints he has to deal with from a cultural and contextual point of view conditions the alignment of objectives

Communicate

Misunderstandings and ambiguities must be limited or eliminated to ensure constant and efficient transmission of instructions and feedback between individuals without losing meaning

Successful project

Source : NeoFocus analysis

Introduction Communication Differences Changes NeoFocus

5

Page 6: NeoFocus - Adapt your strategy to the Brazilian culture

© NeoFocus Strategy Consulting – All rights reserved

Various elements of our environment directly influence our individual or collective communication and decision-making processes

Adapt your strategy to the Brazilian culture - 20121108

Familycircle

Socialcircle

Professionalcircle

Society

Institutions

Macro-economics

Natural environment

ReligionHistory

Source : NeoFocus analysis

Introduction Communication Differences Changes NeoFocus

6

Page 7: NeoFocus - Adapt your strategy to the Brazilian culture

© NeoFocus Strategy Consulting – All rights reserved

Agenda

Adapt your strategy to the Brazilian culture - 20121108

1. Introduction 4

2. Adapt communication to another culture 8

3. Understanding fundamental cultural differences 13

4. Adapt to a fast changing society 21

5. NeoFocus Strategy Consulting & the speaker 23

Page

Introduction Communication Differences Changes NeoFocus

7

Page 8: NeoFocus - Adapt your strategy to the Brazilian culture

© NeoFocus Strategy Consulting – All rights reserved

Different local cultural environments generate different thought processes, personal goals and courses of actions

Adapt your strategy to the Brazilian culture - 20121108Source : NeoFocus analysis

Success factorDetermine cultural differences and their potential impact as early as possible in a project

Communication issues Diverging solutionsDiverging decision-

making processDiverging objectives Diverging results interpretation

Introduction Communication Differences Changes NeoFocus

8

Page 9: NeoFocus - Adapt your strategy to the Brazilian culture

© NeoFocus Strategy Consulting – All rights reserved

Language and cultural references directly impact upstream and downstream message interpretation, resulting in possible distortion

Adapt your strategy to the Brazilian culture - 20121108

Message distortion in cross-cultural communication

Source : Nancy J. Adler, desk research, NeoFocus analysis

(Nehru, prime minister of India from 1947 to 1964)

Recipient Sender

Sent message

Perceived message

Perceived feedback

Intended message

Intended message

Sent feedback

Encoding Decoding

DecodingEncoding

« If we seek to understand a people, we must try to put ourselves, in that particular historical and cultural background »« If we wish to convince them, we must use their language, not language in the narrow sense of the word, but the language of the mind »

Introduction Communication Differences Changes NeoFocus

9

Page 10: NeoFocus - Adapt your strategy to the Brazilian culture

© NeoFocus Strategy Consulting – All rights reserved

To mitigate distortion, it is vital to evaluate the weight of the cultural impact on interpretation, and to qualify the nature of that impact

Adapt your strategy to the Brazilian culture - 20121108

Encoding / decoding

Quantification de l’impact ?

Qualification de l’impact ?

Source : E. Hall, NeoFocus analysis

Recipient

Sender

Intended message

Perceived message

Qualification / quantification ofdistortion ?

Success factors

• Understand one’s own culture

• Understand the recipient’s culture

• Evaluate the weight of each culture onpotential message distortion

Adapt message accordingly

Impact qualification ?

Impact quantification ?

Introduction Communication Differences Changes NeoFocus

10

Page 11: NeoFocus - Adapt your strategy to the Brazilian culture

© NeoFocus Strategy Consulting – All rights reserved

Latin American and Mediterranean cultures generate higher distortion in message communication than North European and Anglo-Saxon cultures

Adapt your strategy to the Brazilian culture - 20121108

High context cultures Low context cultures

Intended message

Perceived message

Intended message

Perceived message

Allegories, parables, contextual interpretations, non-verbal communication

« What you see is what you get »:Limited space to ambiguousness

and interpretation

Other common characteristics:- Closed groups (clubs, distinctions, titles, etc…)- Strong inter-personal links- Several concentrical community circles- Long to initiate, but lasting relationships- Collectivism - Flexibility - Priority to process over result

Other common characteristics: - Open groups (fast food, informal forums, etc…)- Priority to necessity over relationship- Easy to initiate, but shorter-term relationships - Individualism- Results matter more than process

Few words convey complex ideas Explicit and exhaustive formulation

Illustration: Southern Europe, Latin America, Asia, Africa, Russia Illustration: Anglo-Saxon, Scandinavian, Germanic countries

« High context » and « low context » cultures : Edward Hall, anthropologist (USA 1914-2009) Concept

Source : E. Hall, NeoFocus analysis

Mitigation

Make any “cross-culture” message as neutral, explicit, factual as possible unless the destination culture and its impact oninterpretation is deeply understood

Introduction Communication Differences Changes NeoFocus

11

Page 12: NeoFocus - Adapt your strategy to the Brazilian culture

© NeoFocus Strategy Consulting – All rights reserved

Agenda

Adapt your strategy to the Brazilian culture - 20121108

1. Introduction 4

2. Adapt communication to another culture 8

3. Understanding fundamental cultural differences 13

4. Adapt to a fast changing society 21

5. NeoFocus Strategy Consulting & the speaker 23

Page

Introduction Communication Differences Changes NeoFocus

12

Page 13: NeoFocus - Adapt your strategy to the Brazilian culture

© NeoFocus Strategy Consulting – All rights reserved

Cultural differentiation can be measured according to 5 dimensions

Adapt your strategy to the Brazilian culture - 20121108

From 1967 to 1973, G. Hofstedeinterviews several thousand IBMemployees located in 70 countries.

Geert Hofstede’s work and methodology

During the following 20 years, he fine-tunes andvalidates his concept on several other large-scalepopulation samples: students, foreign office civilservants, flight attendants, etc…

Statistical and analytical data available today covers 74countries, including several Asian nations, the USAand most European countries.

Geert Hofstede’s 5 « cultural dimensions »

Powerdistance

Individualism

AssertivenessUncertaintyavoidance

Long termorientation

Culturaldifferentiation

Source : Geert Hofstede, desk research, NeoFocus analysis

Cultural dimensions: Geert Hofstede, psychologist (Netherlands, born in 1928) Concept

Introduction Communication Differences Changes NeoFocus

13

Page 14: NeoFocus - Adapt your strategy to the Brazilian culture

© NeoFocus Strategy Consulting – All rights reserved

0

20

40

60

80

100Italie

Allemagne

Brazilian and French cultures can be mapped according to Hofstede’s concept, providing visual evidence of their greatest points of convergence and / or divergence

Adapt your strategy to the Brazilian culture - 20121108

Brazil and France: some contrasts…

Source : Geert Hofstede, desk research, NeoFocus analysis

… but everything is relative...

Cultural profile mapping based on G. Hofstede’s concept

Power distance Individualism Assertiveness Uncertainty

avoidanceLong termorientation

Brazil 69 38 49 76 65

France 68 71 43 86 39

0

20

40

60

80

100USA

China

Germany

Italy

NOTE : Long Term Orientation may not have been measured on some countries and may be approximated based on similar cultures

Introduction Communication Differences Changes NeoFocus

0

20

40

60

80

100

DistanceHiérarchique

Individualisme

AssertivitéAversion àl'Incertitude

Orientation LongTerme

Brésil

France

Power distance

Individualism

AssertivenessUncertainty avoidance

Long term orientation

Brazil

14

Page 15: NeoFocus - Adapt your strategy to the Brazilian culture

© NeoFocus Strategy Consulting – All rights reserved

The relationship to hierarchy is pretty similar in France and in Brazil: hierarchical structures and organizations, and management methods should be easily transferable

Adapt your strategy to the Brazilian culture - 20121108

0 10 20 10030 40 50 60 70 80 90

Concept

Success factors in Brazil

• Despite an often very open and friendly first contact, allow time to get acquainted and establish trust

• Pay attention to signs indicating difference of status/power (social lift / service lift)

• Identify the real decision makers, even discrete ones

Introduction Communication Differences Changes NeoFocus

Hierarchical structuresFlat Vertical

Decisional centersMultiple, substantial delegation Centralized, little delegation

Individual autonomyHigh Low

Demonstration of respectNot required Necessary

Compensation structureLow disparities High disparities

Physical demarcationNon-existent Visible

“Power Distance”: comparative positioning and characteristics

Source : Geert Hofstede, desk research, NeoFocus analysis15

Page 16: NeoFocus - Adapt your strategy to the Brazilian culture

© NeoFocus Strategy Consulting – All rights reserved

The Brazilian society experiences strong social ties between individuals, involving more collective goals and rewards than in France

Adapt your strategy to the Brazilian culture - 20121108

0 10 20 10030 40 50 60 70 80 90

Concept

Success factors in Brazil

• In family businesses, the leader often decides based on the interests of a larger group than himself: his family, his employees, his network,…

• Note: a “yes” does not necessarily mean “yes”

• Discussing one’s private life at work: frequent in Brazil, much less so in France

Introduction Communication Differences Changes NeoFocus

RecognitionPublic recognition of achievements Individual fulfilment, material rewards

TruthLess important than harmony Paramount

PrivacyNo object Fundamental right

Decisional prioritiesGroup interest Individual interest

“Individualism”: comparative positioning and characteristics

Source : Geert Hofstede, desk research, NeoFocus analysis16

Page 17: NeoFocus - Adapt your strategy to the Brazilian culture

© NeoFocus Strategy Consulting – All rights reserved

Assertiveness in relationships between individuals is similar in France and in Brazil ; in both cases, the role of women is less differentiated vs. men than in many other countries

Adapt your strategy to the Brazilian culture - 20121108

0 10 20 10030 40 50 60 70 80 90

Concept

Success factors in Brazil

• Historically, women have been working for a long time and in large proportions in the Brazilian society

Introduction Communication Differences Changes NeoFocus

Gender behaviourial differentiationLow High

Role assignationWeak Strong

Respect for females’ successNaturally equal to males’ Subject to discussion

KSF for female successNon specific Mimic male behaviour

CompetitivenessWeak (sympathy) Strong (combativeness)

“Assertiveness”: comparative positioning and characteristics

Source : Geert Hofstede, desk research, NeoFocus analysis17

Page 18: NeoFocus - Adapt your strategy to the Brazilian culture

© NeoFocus Strategy Consulting – All rights reserved

Brazilian and French cultures differ significantly in terms of risk acceptance: this difference may result in a permanent gap in transnational projects

Adapt your strategy to the Brazilian culture - 20121108

0 10 20 10030 40 50 60 70 80 90

Concept

Success factors in Brazil

• « God is Brazilian » vs. French freewill

• Brazilians are informal… butknow how to adapt (and survive crises)

• A compromise is required on the degree of formalization expected in a transnational project (hence the importance of mutual trust)

• A dual management is often the right framework to steer a project / train teams

Introduction Communication Differences Changes NeoFocus

Professional attitudeInformal Very formal

Importance given to detailsSecondary: strategy is more important Vital

Perception of differencesNecessary to evolution Destabilizing, subversive

Perception of changeUnavoidable Threatening

Perception of rules and proceduresFutile, useless Vital to safety / security

Perception of riskInherent to life Must be avoided at all costs

“Uncertainty Avoidance”: comparative positioning and characteristics

Source : Geert Hofstede, desk research, NeoFocus analysis18

Page 19: NeoFocus - Adapt your strategy to the Brazilian culture

© NeoFocus Strategy Consulting – All rights reserved

Brazilian society is still quite traditional in many ways, despite an informal appearance

Adapt your strategy to the Brazilian culture - 20121108

0 10 20 10030 40 50 60 70 80 90

Concept

Success factors in Brazil

• Some decisions may be motivated by respect for tradition rather than efficiency

• Respect is due to elders and sometimes precedes actual skills

Introduction Communication Differences Changes NeoFocus

Basis of societyIndividuals with equal rights Clan, family

CreativityFree Constrained by social rules

Parental authorityLimited Strong

Knowledge acquisitionSelf-acquisition Formal education

Respect for ageLess important than skills More important than skills

“Long Term Orientation”: comparative positioning and characteristics

NOTE : Long Term Orientation may not have been measured on some countries and may be approximated based on similar cultures

Source : Geert Hofstede, desk research, NeoFocus analysis19

Page 20: NeoFocus - Adapt your strategy to the Brazilian culture

© NeoFocus Strategy Consulting – All rights reserved

Agenda

Adapt your strategy to the Brazilian culture - 20121108

1. Introduction 4

2. Adapt communication to another culture 8

3. Understanding fundamental cultural differences 13

4. Adapt to a fast changing society 21

5. NeoFocus Strategy Consulting & the speaker 23

Page

Introduction Communication Differences Changes NeoFocus

20

Page 21: NeoFocus - Adapt your strategy to the Brazilian culture

© NeoFocus Strategy Consulting – All rights reserved

0

5

10

15

20

25

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

2001 2002 2003 2004 2005 2006 2007 2008 2009

Inequalities are diminishing but still structure the Brazilian society

Adapt your strategy to the Brazilian culture - 20121108

Revenue sharing trend, decrease of extreme poverty Illustration

Source : World Bank, NeoFocus analysis

Population < 2 US$ / day

% of population below poverty level

(2 US$/day)Total aggregated revenue, Bn US$

1st quintile

2nd quintile

3rd quintile

5th quintile

4th quintile

Introduction Communication Differences Changes NeoFocus

21

Page 22: NeoFocus - Adapt your strategy to the Brazilian culture

© NeoFocus Strategy Consulting – All rights reserved

Agenda

Adapt your strategy to the Brazilian culture - 20121108

1. Introduction 4

2. Adapt communication to another culture 8

3. Understanding fundamental cultural differences 13

4. Adapt to a fast changing society 21

5. NeoFocus Strategy Consulting & the speaker 23

Page

Introduction Communication Differences Changes NeoFocus

22

Page 23: NeoFocus - Adapt your strategy to the Brazilian culture

© NeoFocus Strategy Consulting – All rights reserved

NeoFocus assists its clients in all aspects of their growth initiatives: we provide professional services to imagine, design, execute and protect their successful development

Our vision

Strategy

Organic growthExternal growth

Profitability growth Portfolio management

Corporate finance

M&AJoint venturesRestructuring

Specialized practices

AntitrustInnovation

Adapt your strategy to the Brazilian culture - 20121108

Introduction Communication Differences Changes NeoFocus

23

Page 24: NeoFocus - Adapt your strategy to the Brazilian culture

© NeoFocus Strategy Consulting – All rights reserved

NeoFocus is organized to provide professional services to support our customers’ growth initiatives

Our professional practices

Organic growth

External growth

Portfoliomanagement

Profitability expansion

Sustainable and profitable growth

Strategy practice .

• Strategic Advisory

• Strategic Consulting

• Strategic Training

Specialized practices .

• Competition law cases / antitrust

• Innovation Booster

Our customers’growth projects

Our assistanceCorporate finance

practice

• M&A

• Joint ventures

• Restructuring

Local teams Experts

Adapt your strategy to the Brazilian culture - 20121108

Introduction Communication Differences Changes NeoFocus

24

Page 25: NeoFocus - Adapt your strategy to the Brazilian culture

© NeoFocus Strategy Consulting – All rights reserved

Our international network allows us to conduct worldwide projects with integrated local teams

New York

Paris

New Delhi

Tokyo

Shanghai

Chennai

ZurichVienna

Munich

São Paulo

Geneva

Our international network of local professionals

Team Language Fluency:French EnglishGerman SpanishItalian PortugueseHindi TamilMandarin JapaneseCantonese Russian

Team Business Experience:North America ChinaWestern Europe IndiaRussia South AfricaBrazil ArgentinaAustralia SE AsiaJapan

Inside accessto international markets

Adapt your strategy to the Brazilian culture - 20121108

Introduction Communication Differences Changes NeoFocus

25

Page 26: NeoFocus - Adapt your strategy to the Brazilian culture

© NeoFocus Strategy Consulting – All rights reserved

NeoFocus has a strong international reach that is reinforced by local market experts as well as a large network of industry experts with considerable strategy consulting experience

Our differentiation

• Sectorial expertise• Strategy and specialized practices

• Senior, highly experienced consultants• Partners are directly involved in each assignment• Local teams in each country• Over 250 customers and 850 projects over 10 years

• Structured, proven proprietary methodologies • guaranteed quality levels• can be passed on to client teams via training

• Wide networks of experts (sectorial or functional expertise)

Expertise Unbiased recommendations

• NeoFocus is an independent group, 100% owned by its founders

• We provide our services with complete objectivity, and make our recommendations with freedom and in the sole interest of our customers

• We deliver fact-based, unbiased opinions to address our customers’ issues

• We provide recommendations to the best of our professional expertise

• We develop long term, trust-based relationships with our customers

• We ensure confidentiality & discretion

Adapt your strategy to the Brazilian culture - 20121108

Introduction Communication Differences Changes NeoFocus

26

Page 27: NeoFocus - Adapt your strategy to the Brazilian culture

© NeoFocus Strategy Consulting – All rights reserved

Our customers’ growth initiatives benefit from NeoFocus’ assistance: results achieved are improved, and costs and risks incurred are reduced

Some benefits of NeoFocus’ assistance

• Improved transparency• Improved predictability• Proven NeoFocus

methodologies

• Better growth projects• Better execution of growth

projects• Increased understanding and

support from the organization

• Improved competitive advantage

• Better understanding of the environment

• Better risk contingency planning

• Transfer of successful ideas from other sectors

• Better allocation of existing resources

• Improved transparency

More growth

Less risks

More predictability More sustainability

Less uncertainty Less waste of resources

Adapt your strategy to the Brazilian culture - 20121108

Introduction Communication Differences Changes NeoFocus

27

Page 28: NeoFocus - Adapt your strategy to the Brazilian culture

© NeoFocus Strategy Consulting – All rights reserved

The speaker founded and manages the Paris office of NeoFocus

Adapt your strategy to the Brazilian culture - 20121108

Introduction Communication Differences Changes NeoFocus

Your contact

Jérôme Kelber

Managing PartnerParis / France

Jerome Kelber has over 15 years of consulting experience in Europe, the US, Brazil and North Africa. He has extensive industry knowledge in a broad range of industrial sectors, including agribusiness, mining, materials, aerospace and defense, electronics, clean techs and biotech, but also service industries, such as IT, B-to-B services, telecom, specialized retail and private equity.

Jerome Kelber has advised multiple leading European corporations on organic growth strategies, new business development, international expansion, M&A operations and post-merger integration.

Prior to setting up his own practice, Jerome Kelber was a senior project manager at Roland Berger & Partners, a global management strategy consultancy.

Prior to working in strategy consulting, Jerome Kelber acquired extensive M&A experience for over 6 years with Morgan Stanley and Calyon, mainly in cross-border M&A transactions. He also developed a strong experience in innovation and high‐tech engineering consulting, with global leader in R&D outsourcing Altran, mainly in the telecom network operators.

Jerome Kelber graduated from Ecole Centrale de Paris (Engineering and Economics) and holds a master in Economics & Finance from University of Paris I La Sorbonne.

Jerome Kelber has been a private pilot since 2001 and holds an instrument rating (IR-ME) since 2011.

28

Page 29: NeoFocus - Adapt your strategy to the Brazilian culture

Strictly confidential

42, avenue Montaigne75008 ParisFrance

Tél: +33 (0) 1 42 27 13 00Fax: +33 (0) 1 46 39 01 82

[email protected]

Adapt your strategy to the Brazilian culture - 20121108 29