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Riding the Waves of Culture

Article · January 1998

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Fons Trompenaars Charles Hampden-Turner


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Riding the Waves of Culture
Reducing Lines, Expanding Circles

27th March 2009


Beurs van Berlage

Fons Trompenaars

Your clients and partners

1
The old MBA paradigm

We know this right?

Lets now do it with one line…

2
The new MBA Paradigm: with ONE line

The new MBA Paradigm

3
But you have to fold the paper!

Approaching Dilemmas: Navigating Strategic Tensions

To Create Wealth is to Combine Values


That are not easily joined…
Therefore scarce...
Therefore profitable….

4
This approach leads to concrete and measurable actions…
Impact

Realize
Realizeand
and
Root
Root
Implement
Implement
Reconciling
ReconcilingActions
Actions

Reconcile
Reconcile
Resolve
Resolve
Cultural
CulturalDifferences
Differences

Respect
Respect
Appreciate
Appreciate
Cultural
CulturalDifferences
Differences

Recognize
Recognize
Increase
IncreaseAwareness
Awareness

Time
9

Core Proposition

“Successful leaders have the propensity and competence


to help organizations and its teams reconcile dilemmas for
better sustainable business performance”

10

5
Some hard evidence

11

Our research reveals that propensity to reconcile dilemmas correlates


with bottom line business performance

Correlation
(Spearman’s coefficient of rank
correlation)

Correlation between reconciliation and 360o feedback 0.71


by peers and subordinates

Correlation between reconciliation and bottom line 0.69


business performance in profit centre/budget stream

Source: 21 Leaders for the 21st Century p429

12

6
Intercultural Competence Profile – the group

Average

13

What is Culture?

Please define culture

14

7
A model of culture

Physical
Language
contact

Work ethic Food

Expression
of emotion Meeting style

Rhythm & Pace Architecture

Dress
Behaviour

Literature

15

A model of culture

Explicit
Culture

16

8
Culture as a Normal Distribution
For example

US Culture French Culture

Stereotype Stereotype
17

A model of culture

Explicit
Culture

Basic
Assumptions

Implicit
Culture

18

9
About Culture

Is a dynamic process of solving human problems/dilemmas


in the areas of…

- Human Relationships
- Time
- Nature

19

01/ The Car Accident


What happens to your friend?

20

10
01/ What right does your friend have?

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.

21

01/ Dilemma:

INTEGRITY

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…

22

11
01 Universalism versus Particularism

02 Individualism versus Communitarianism

03 Neutral versus Affective

04 Specific versus Diffuse

05 Achievement versus Ascription

06 Sequential versus Synchronic

07 Internal versus External Control

01/ Universalism versus Particularism

• Consistency • Flexibility
• Systems, standards & • Pragmatic
rules • Make exceptions
• Uniform procedures • “It depends”
• Demanding of clarity • At ease with ambiguity
• Letter of the law • Spirit of the law

24

12
01/ Universalism
Friend has no/some right and would not help

Switzerland 97
Canada 93
USA 93
Sweden 92
United Kingdom 91
Australia 91
Netherlands 90
Germany 87
Czech Rep 83
France 73
Singapore 69
Japan 68
Mexico 64
India 54
China 47
Russia 44
Korea 37
Venezuela 32

0 20 40 60 80 100

25

01/ Dilemma: Global versus Local

Global Standards Cultural Diversity


(Critical Mass) (Differing solutions)

26

13
01/ Global versus Local

Transnational
Global Standards (Critical Mass)

Centers of
Excellence
(10,10)
“Be like US”
(1,10)

(10,1)

Small Nations

Multi-Localism

Cultural Diversity (differing solutions)

27

01/ Main Challenges

1. Mass-Customization

2. Co
Co--Opetition

3. It is Cool to be emotional

4. Moments of Truth

5. Servant Leader

6. Just In Time Synchronizing Sequences

7. Pushing through the Pull


28

14
01 Universalism versus Particularism

02 Individualism versus Communitarianism

03 Neutral versus Affective

04 Specific versus Diffuse

05 Achievement versus Ascription

06 Sequential versus Synchronic

07 Internal versus External Control

02/ Individualism versus Communitarianism

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.’

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.’

30

15
02/ Individualism
Percentage opting for individual freedom

Israel 89
Canada 71
USA 69
Denmark 67
Netherlands 65
Finland 64
Australia 63
UK 61
Sweden 61
Russia 60
Germany 53
Italy 52
Indonesia 44
Singapore 42
China 41
France 41
Japan 39
India 37
Mexico 32
Egypt 30

0 20 40 60 80 100

31

02/ Dilemma Reconciliation

The Individual and the Team

Case Study:
Individual Performance versus Team Spirit

32

16
02/ The Individual and the Team

Reward Individual Performance

Stimulate Team Co-operation

33

02/ Dilemma Reconciliation

(1,10) Me, Myself and I


withholding Information
Individual Motivation

Team Motivation
34

17
02/ Dilemma Reconciliation
Individual Motivation

Team Mediocrity (10,1)


Team Motivation
35

02/ Dilemma Reconciliation


Individual Motivation

(5,5)

Go for the Small team

Team Motivation
36

18
02/ Dilemma Reconciliation

Reward Teams
for Individual
Creativity
Individual Motivation

(10,10)

AND

Reward
Individuals
for Team Work

Team Motivation
37

02/ Main Challenges

1. Mass
Mass--Customization

2. Co- Opetition

3. Moment of Truth

4. It is Cool to be Emotional

5. Servant Leader

6. Just In Time Synchronizing Sequences

7. Pushing through the Pull

38

19
01 Universalism versus Particularism

02 Individualism versus Communitarianism

03 Neutral versus Affective

04 Specific versus Diffuse

05 Achievement versus Ascription

06 Sequential versus Synchronic

07 Internal versus External Control

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. Undecided
D. Disagree
E. Strongly disagree

40

20
03/ Neutral versus Affective
Percentage not expressing emotions overtly

Ethiopia 81 %
Japan 74
Hong Kong 64
China 55
India 51
Canada 49
Denmark 48
Portugal 47
Sweden 46
UK 45
USA 43
Brasil 40
Italy 33
France 30
Argentina 28
Russia 24
Spain 19
Egypt 18
Kuwait 15
0 20 40 60 80 100

41

03/ Neutral versus Affective


Myers Briggs Type Indicator (MBTI)

DILEMMA

How to select the Right Person?

Myers Briggs Type Indicator (MBTI)

42

21
03/ Neutral versus Affective
Emotions in Control

43

03/ Neutral versus Affective


Emotions in Control

44

22
03/ Neutral versus Affective

(1,10)
Emotions and head in Control

Analysis, Paralysis

Heart in Passion
45

03/ Neutral versus Affective


Emotions and head in Control

(10,1)
Loving Neurotic

Heart in Passion
46

23
03/ Neutral versus Affective
Emotions and head in Control

(10,10)
Continually checking what
your heart communicates

Heart in Passion
47

03/ Main Challenges

1. Mass
Mass--Customization

2. Co
Co--Opetition

3. It is Cool to be Emotional

4. Moments of Truth

5. Servant Leader

6. Just In Time Synchronizing Sequences

7. Pushing through the Pull

24
01 Universalism versus Particularism

02 Individualism versus Communitarianism

03 Neutral versus Affective

04 Specific versus Diffuse

05 Achievement versus Ascription

06 Sequential versus Synchronic

07 Internal versus External Control

04/ Specific versus Diffuse

PUBLIC

PRIVATE

50

25
04/ Specific versus Diffuse

PUBLIC PUBLIC

Specific Relationship

51

04/ Specific versus Diffuse

PUBLIC
PRIVATE

52

26
04/ Specific versus Diffuse

No Relationship

53

04/ Specific versus Diffuse

PRIVATE PRIVATE

Diffuse Relationship

54

27
04/ Specific versus Diffuse

PUBLIC

PRIVATE PRIVATE

Danger Zone

55

04/ Specificity
A boss asking to paint his house

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.

56

28
04/ Specificity
Would not paint the house
Sweden 91
Netherlands 91
%
Denmark 89
UK 88
Canada 87
USA 82
Australia 78
Japan 71
Mexico 70
Thailand 69
Greece 67
Belgium 66
Korea 65
Singapore 58
Venezuela 52
Kuwait 47
Nigeria 46
China 32
0 20 40 60 80 100

57

From the Balanced to the Integrated Score Card

Balanced Score Card Dilemma…

58

29
From the Balanced to the Integrated Score Card

Specific Financial
Performance

Diffuse
Development of
People

59

From the Balanced to the Integrated Score Card


(10,10)
Cost cutting Integrated
yourself growth:
Specific financial performance

Train for
(1,10) Cost
Cutting

(10,1)

Subsidised
seminar

Interests in future innovating and learning


60

30
04/ Main Challenges

1. Mass
Mass--Customization

2. Co
Co--Opetition

3. It is Cool to be Emotional

4. Moments of Truth

5. Servant Leader

6. Just In Time Synchronizing Sequences

7. Pushing through the Pull

61

01 Universalism versus Particularism

02 Individualism versus Communitarianism

03 Neutral versus Affective

04 Specific versus Diffuse

05 Achievement versus Ascription

06 Sequential versus Synchronic

07 Internal versus External Control

31
05/ Achievement versus Ascription

What You Do Who You Are

STATUS ?

63

05/ Achievement versus Ascription

Aspects of ascribed status…

• Family

• Age

• Gender

• Education

64

32
05/ Achievement versus Ascription

‘The most important thing in life is to act as really


suits you, even if you don’t get things done’

65

05/ Achievement versus Ascription

Percentage not agreeing with acting as really suits you

USA 76
%
Australia 69
Canada 65
UK 56
Sweden 54
Denmark 49
Germany 40
Switzerland 34
France 33
Hong Kong 32
Mexico 31
Russia 30
China 28
Japan 26
Poland 21
Korea 20
Czech Republic 13
Argentina 12
Egypt 4
0 20 40 60 80 100

66

33
67

34
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