The Power of Cultural Differences Pennsylvania International Week Erie, PA September 18, 2012

The Power of Cultural DifferencesPennsylvania International Week

Erie, PA September 18, 2012

Three Megatrends are Changing the World’s Dynamics:

1) Higher GDP in emerging markets2) Young population in these markets3) Rapid urbanization of Asia, Africa, and

Latin America

Source: The Economist Power Shift08-04-2011

1.Growing

GDP

Source: Earth Habitat.com

2. Young

Population

Source: World Bank

3. Urbanization

Largest Cities in the World in the 20th Century:• London, New York, Paris, Chicago, Berlin, TokyoLargest Cities in the World in the 21st Century:• Mumbai, Sao Paolo, Shanghai, Jakarta, Karachi, Lagos

Source: the Atlantic 2000 Years in One Little Graph06-19-2012

How to Position Your Company to Benefit From the New World Dynamics?

- Develop a diversified workforce- Train to develop a global mindset - Lead with cultural intelligence- Must rethink the way we innovate- Pay attention to disruptive innovation- Acknowledge the trickle-up syndrome

The Lewis Model

Your Cultural DNA & the 7 Cultural

Dimensions at Work:1. Social Stratification2. Independence Level3. Business Focus4. Communication Pattern5. Concept of Time6. Handling Change7. Career Driven vs. Joie-de-Vivre

GLOBAL VIEW OF SOCIAL STRATIFICATION In an egalitarian culture, people:• Speak their mind• Life is informal• Titles are not important• Merit prevails for reward and promotion

In a hierarchical culture, people:• Speak with caution• Life is very formal• Titles are very important • Seniority prevails for reward and promotion

GLOBAL VIEW OF INDEPENDENCE LEVELIn an individualist society, people:• Are self-starter• They don’t like to be micro-managed• They control their destiny

In group-oriented culture, people:• Like to follow directions• Like to be micro-managed• Believe in fate dictating their trajectory

GLOBAL VIEW OF BUSINESS FOCUSIn a “transactionist” culture, people:• Focus on the product, the warranty, the profitability• Rely on the law when things go wrong• Don’t mix business and pleasure

In relationship-oriented culture, people:• Focus on the people who sell the product• Rely on the relationship when things go wrong• Business is pleasure

GLOBAL VIEW OF COMMUNICATIONIn a direct culture, people:• Say things as they are• Go straight to the core (low context)• Being honest is a sign of integrity

In an indirect culture, people:• Involve others to discuss an important matter• Don’t go straight to the problem• Speaking one’s mind is disrespectful

GLOBAL VIEW OF THE CONCEPT OF TIMEIn a linear culture:• Time is a commodity• Punctuality is a sign of respect• The relationship understands the constraint of time

In a circular culture:• Time is created when needed• Punctuality doesn’t mean anything• The relationship supersedes time constraints

GLOBAL VIEW OF HANDLING CHANGEIn a change oriented culture:• Change keeps us young• Change means you can adapt and grow• Failure is part of growing

In a change-resistant culture:• Change kills us• Change means that you are no longer in control• Failure means that you have lost face

GLOBAL VIEW OF WORK/LIFE BALANCEIn a culture where people live to work:• Work defines a person• Ambition is admirable• Work always comes first

In a culture where people work to live:• Relationships define a person• Ambition is negative• Pleasure always comes first