PRM22102: Project Leadership

Week 4: National Culture in Project Leadership

Dr. Paul D.J. Moody (PhD RCA, FHEA, Dip, BHum)

p.moody@rave.ac.uk
 Agenda
• Why does Culture Matter?
• Hofstede’s Cultural Dimensions
• Ethnocentrism
• Cultural Intelligence
• Self Assessments
• Bafa Bafa Game
• Case Study (Cirque Du Soleil)
Lecture Materials
 What is Culture?
Culture is defined as the shared values, assumptions, beliefs and norms that unite members
of a particular social group

Culture is just like an iceberg…

Question: Why is culture important? Let’s try this example…

What is your first reaction when you think of grasshoppers?

Food?

Pet?

Pest?
Music?
 Why Does National Culture Matter in Business?
• Failure to recognize this can lead to serious consequences, personally or in business!

Example #1: Pepsi Advertising

Campaign

Pepsi marketing team created a

Chinese slogan in 1960s
• “Come alive with the Pepsi
Generation” was translated into
Chinese as ….

“Pepsi brings your ancestors back

from the grave”!
Example #2: Popular VLogger Logan Paul
• In 2018, Logan Paul went to Japan to film a segment
for his Vlog channel

• Severe criticism due to multiple culturally

inappropriate antics pulled during his trip including:
q Running around the streets of Japan in a
Kimono
q Smashing Game Boys in a public market
q Taunting people with raw fish
q Making jokes while filming a dead body hanging
from a tree at Japan’s “Suicide Forest” near Mt
Fuji
• Massive global PR backlash from the Japan Suicide
segment!

• YouTube removing Logan’s channels from Google

Preferred program and taking down his video
 Why Does National Culture Matter in Project Leadership
Not only does culture impact on the way business is done, but the way leaders run their project
teams! Failure to recognize this leads to serious consequences too:
Example: Sydney Opera House
• Construction began in 1959, involving architects from Denmark,
and construction workers from Australia

• Different cultural norms and communication styles led to

misunderstandings and disagreements
q Danish architects preferred Participative Leadership Style,
whilst Australian workers preferred Directive Leadership
Style
q Danish architects adhered to deadlines, whilst Australians
preferred relaxed approach towards time
q Danish architects preferred to confront conflicts, whilst
Australians preferred to avoid them
• Budget went from $7mil to $100 mil, and took more than 10
years to finish!
 Understanding National Culture:
Hofstede’s Five Cultural Dimensions
One of the most widely referenced approaches for analyzing cultural value variations was developed in the
late 1970s by Geert Hofstede:

1. Hofstede’s Five Cultural Dimensions

• Surveyed more than 116 IBM employees in 40 countries about work-related values. Found that cultures
varied in 5 value dimensions and rated on a 100-point scale:

Video examples (Hofstede):

https://www.youtube.com/wat
ch?v=IHdqPqWle04
 Case Study: United Kingdom
Let’s explore British culture…
1) Power distance (35): Low score. Unequal distribution of power is
not widely accepted
• Lack of overt status and/or class distinctions
• Senior management is readily accessible
• Managers rely on employees for expert advice

2) Individualism (89): Very high score. Strong individualism culture

• British are highly individualistic and private people
• Children are taught to think for themselves
• Focus on finding what their unique purpose in life is, and achieving
personal fulfillment

3) Masculinity (66): Leaning towards Masculinity

• Highly success oriented and driven
• British people “live in order to work”
• Have clear performance ambition
4) Uncertainty Avoidance (35): Low score. Tolerant towards ambiguity
• Happy to wake up not knowing what the day brings
• Comfortable in uncertain situations
• High level of creativity and strong need for innovation

5) Long-term Orientation (51): Medium score. Balanced between both

spectrums
• Balanced mixture of short-term and long-term orientation (no
dominant preference)

6) Indulgence (69): High score. Culture is less restrained.

• Willingness to realize impulses and desires (i.e. enjoy life and have
fun!)
• Focus on enjoying life and having fun
• Higher degree of importance on leisure time
• Act as you please, and spend money as you wish!
 Understanding National Culture: High vs. Low Context
High Context Cultures Low Context Cultures

• Rely heavily on non-verbal and subtle • Rely heavily on words to convey meaning in
situational cues in communication communication

• Emphasis on background, basic values, • Messages are explicit and specific

societal status • Focus on non-personal documentation of
credibility

• Consider your own national culture – high

context or low context?
 Understanding National Culture: Proxemics
Proxemics refers to the study of how people perceive and use space in different cultures and how it
affects their communication and interactions. It plays significant role in cross-cultural project
management contexts!
North America / Europe:
• Moderate distances preferred overall
• Handshakes or light physical contact are common forms of
greeting

Asia:
(Good friends or family) • Smaller distances preferred overall
• Limited touching and bowing as signs of respect

(Acquaintances) Latin America:

• Smaller distance preferred overall
• Close interactions and physical touch are common
(Speaking/performing)

Middle East:
• Larger distance preferred
• Respectful distance is emphasized, but frequent touching
amongst close friends/family
 Understanding National Culture: Time
There are also two main societal approaches to time, which can impact on project leadership:

Monochronic Cultures: Polychronic Cultures:

• Linear time perception • Fluid time perception
• Tasks are prioritized and • Multiple tasks are managed
completed sequentially simultaneously
• Punctuality is valued and • Flexibility in schedules with
schedules are strictly less emphasis on punctuality
followed • Interuptions are accepted
• Complete one task at a time
• Not natural to we humans – it
is a learned culture for which Preferred by South Europe,
the Industrial Revolution was Latin America, Africa and
a key driver! Middle East

Preferred by North Europe, US Again, how does your culture

and Japan fit with these concepts of
time?
 Understanding National Culture: Foreign Assignments
Expatriates refer to anyone living and/or working outside their home country

In the US, typically 16-40% of expatriates do NOT complete their foreign project assignments!

The high failure rate stems from:

• Lack of cultural training
• Difficulty in understanding and accepting different perspectives
• Communication barriers
• Struggling to fit into new cultural contexts
• Misalignment of values, norms and behaviours
 Foreign Project Assignment Cycle
1. Home Country Experiences:
• Initial preparation and selection for the project assignment
• Attempt to familiarize with the foreign culture, language & project
requirements

2. Foreign Country Experiences:

• Arrival and adaptation to new culture, work environment and daily
life
• Navigate cultural differences
• Feeling culture shock

3. Settling In and Acculturating:

• Gradual adjustment to the local customs, norms and lifestyles
• Develop deeper understanding of host country

4. Returning Home and Adjusting:

• Preparing for re-entry and adjusting to the home country's culture.
• Reflecting on the experience and integrating lessons learned.
• Reconnecting with friends, family, and professional networks
Question: What are some ways to improve the success of leaders assigned to foreign
projects? Discuss with a partner.

1. Language skills training to boost communication effectiveness

2. Cultural sensitivity training to equip the leader with knowledge about the host country’s culture
and business practices
3. Assign a local mentor or sponsor to guide and support the leader in navigating the new
environment
4. Build relationships with local team members and stakeholders
5. Encourage participation in local events and activities to foster cultural immersion
6. Flexible leadership based on contextual factors to accommodate cultural nuances
7. Provide support for expatriate families to adapt and settle in the new environment
 Understanding National Culture: Ethnocentrism
Ethnocentrism: is the belief that one’s native country, culture, language and behaviour are superior
to all others (i.e. “My culture and language is appropriate and relevant in all situations” )

Cultural Myopia (short-sightedness): Ethnocentrism leads to narrow and limited perspectives that
create misunderstandings when managing cross-cultural project teams

Negative impacts in Project Management can include:

1. Communication breakdowns: Leader may unintentionally offend team members or make

decisions that clash with cultural norms, leading to tensions and misunderstandings.
2. Unproductive work environment: Creates a working environment where team members do not
feel valued or understood which reduces motivation.
3. Lack of adaptation: Leader uses same leadership approach across all cultural contexts, which
hinders the ability to address needs and expectations of diverse team members
4. Missed opportunities: Ignoring cultural differences leads to missed opportunities for innovation
and creativity
5. Staffing problems: Difficult to recruit/retain high-quality international candidates, high turnover
rates and lawsuits over personnel policies
Sample Case: You are a valuable member of a rapidly growing tech startup situated in Silicon
Valley, USA. This company is planning an exciting expansion into the Japanese market, and you
have been entrusted with leading a project team that comprises both American and Japanese
professionals.

1. Define the problem or goal in terms of
home country cultural traits (i.e. US)
• Individualism and autonomy
• Direct and open communication
• Quick decision-making
• Informal and casual work atmosphere
• Meetings focus on making decisions
3. Isolate the Self Reflection Criterion influence that
you have from USA, and examine it.
• US leaders prone to cultural myopia
• Assume direct communication and quick
decision-making is more efficient
• Overlook importance of building consensus and
respecting hierarchy in the Japanese context

2. Define the problem in terms of host-
country cultural traits (i.e. Japan)
• Group harmony and consensus
• Indirect non-verbal communication
• Meetings for information-sharing
• Formal and structured hierarchy
• Employees avoid challenging superiors
openly
4. Define the problem in terms of host-country
cultural traits (i.e. Japan)
• Prioritize building relationships and consensus
before decision-making
• Meetings designed to encourage information-
sharing before making decisions
• More Participatory Leadership Style, to balance
existing hierarchy whilst seeking input from all
team members
 Understanding National Culture: Cultural Intelligence
What is Cultural Intelligence (CQ)?
• Refers to a person’s ability to understand and navigate different cultural contexts effectively
• Involves developing knowledge and skills related to cultural norms, customs, values and
beliefs

Question: What are the benefits of being Culturally Intelligent in project management?
1. Helps individuals work effectively in multi-cultural environments
2. Build positive relationships with people from diverse backgrounds
3. Promotes mutual understanding and respect between cultures

Particularly helpful for all of us to

understand!
Cultural intelligence resides in:
1. Cognitive:
• “The Head”
• Learning about the beliefs, customs and taboos of foreign
cultures

2. Physical:
• “The Body”
• Actions and demeanours must prove that you have
already to some extent entered the foreign culture

3. Emotional / Motivational:
• “The Heart”
• Adapting by overcoming setbacks and obstacles
• This is possible if you believe in your efficacy!

Cultural Intelligence is particularly helpful to people working on

international assignment!
 6 Cultural Intelligence Profiles
Academics have discovered 6 types of Cultural Intelligence profiles:
1.Provincial: 2. Analyst: 3. Natural:
• Gifted in working with people • Methodically deciphers a • Rely completely on
from similar background foreign cultures rules and intuition when confronted
• Struggles when in a new expectations with new situations
environment • Resorts to a variety of • Quickly sizes someone up
elaborate learning strategies and responds to cultural
• Least likely to recognize
cultural differences or to cues on the fly
• Final approach can end up
adapt their mannerisms & being quite rigid • Non-systematic
mindsets • Can lead to difficulties in
complex situations (More
lasting strategies are
required!)
4. Ambassador:
• Communicates convincingly
that they belong there
• Doesn’t necessarily know
much about the host culture
• Facilitates acting assertively
among people of different
backgrounds in an effective
manner
• Can fall prey to “faux pas”
and create tense situations
5. Mimic:
• High degree of control over
his/her actions and behaviours
• Relies on mimicry to put the
host culture at ease (NOT the
same as pure imitation, which
can be seen as mocking)
• Can lead to difficulties in
complex situations (More
lasting strategies are required!)
6. Chameleon:
• Possesses the highest levels of
all 3 CQ components
• Don’t cause any ripples that
other profiles or natures might
(due to insider’s skills combined
with outsider’s perspective)
• They are so believable that
people may mistake them from
being part of the host culture.
• Rarest profile out of all (Only
5% of managers can do this!)
 TedX Talk: Importance of Cultural Intelligence
What will the leaders of the future need? Julia Middleton argues that it is cultural intelligence,
an evolution - moving from IQ and EQ. But what is CQ, how do you master it and why is it so
important in a smaller but more interconnected world?

Let’s conclude today by watching her TedX Talk (10min):

https://www.youtube.com/watch?v=izeiRjUMau4
 Reminders
• Today:
• Group work on games design
• Individual or group consultations on both modules

• Read through the following files on Aula:

qScheme of Work
qProject Brief
q Group