The Cultural Factor in International
Business
Fons Trompenaars
DIMENSIONS & PROCESS
Three Step Approach
RECONCILIATION
Resolve cultural
differences
RESPECT
Appreciate cultural
differences.
RECOGNITION
Increase awareness
of one’s own
cultural perspective
All materials © Trompenaars Hampden-Turner September 2001
www.thtconsulting.com
New Integrated view on Leadership Competence
Whereas Managers
make decisions on issues
High performing leaders and international
managers continually Reconcile dilemmas
Transcultural Competence =
the propensity to reconcile seemingly
opposing values √
DIMENSIONS & TIME
What is Culture
Please define culture
A model of culture
Culture as a Normal Distribution
US Culture
Language
Physical
contact
French Culture
120
Food
Work ethic
100
80
Architecture
Public
emotion
Music
60
40
20
Pace of life
Dress
Noise
Climate
A model of culture
Explicit
Culture
0
Norms and Values
Literature
Stereotype
About Culture
Is a dynamic process of solving human
problems/dilemmas in the areas of
- Human Relationships
- Time
- Nature
Implicit
Culture
Stereotype
01/ The Car Accident
01
Universalism verus 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
What happens to your friend?
01/ What Right has Your Friend?
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.
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 vs Particularism
01/ Universalism
Friend has no/some right and would not help
97%
Switzerland
• Consistency
• Systems, standards
& rules,
• Uniform procedures
• Demand clarity
•
•
•
•
•
Flexibility
Pragmatic,
Make exceptions
“It depends”
At ease with ambiguity
93
93
92
91
91
Canada
USA
Sweden
United Kingdom
Australia
90
87
Netherlands
Germany
Czech Rep
83
73
France
Singapore
69
68
Japan
India
China
54
47
44
Russia
Korea
Venezuela
37
32
0
01/ Dilemma Reconciliation
Copyright
or
Right to Copy ?
20
40
60
80
01/ Dilemma Reconciliation
12-APR 1996 CIBS AMSTELVEEN TEL 0206401151
TO CIBS(The Center for International Business Studies
April 12, 1996
ATTN: Dr Fons Trompenaars
RE: The Letter of Appreciation
Dear Dr Trompenaars;
I am very sorry for sending this letter of
appreciation to you late
We are very pleased to let you know that your book,
‘Riding the Waves of Culture’ has been successfully
translated in Korean and it gives us big help for
developing our Group’s Globalization.
It is our great honor and thank you for letting us
have an opportunity to use your masterpiece.
Sincerely yours
Mr. Jae Ho Park
Executive Director
GLOBAL MANAGENT INSTITUTE
100
01/ Dilemma Reconciliation
01/ Clashing values
P
U
British Publisher =
Korean Organization =
Universal Copyright
Particular Relationship
Finding a Joint Publisher
Universal
Copyright
(10,10)
Particular relationship with organization
01/ Globalism and Transnationalism
American
Global
Standards
(Critical Mass)
“Be like US”
01/ Main Challenges
Transnational
Centers of
Excellence
X
(10,10)
1. Mass-Customization
2. Co-Opetition
3. It is Cool to be Emotional
4. Moments of Truth
Small Nations
Multi-Localism
Cultural Diversity (Differing solutions)
5. Practice what you Preach
6. Just In Time Synchronizing Sequences
7. Pushing through the Pull
02/ Individualism versus Communitarianism
01
Universalism verus 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
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.’
02/ Individualism
02/ Dilemma Reconciliation
Percentage opting for Individual Freedom
The Individual and the Team
89 %
Israel
Canada
USA
Denmark
Netherlands
Finland
Australia
UK
Russia
Germany
Italy
Indonesia
Singapore
China
France
Japan
India
Mexico
Egypt
71
69
67
65
64
63
61
60
Case Study:
Individual Performance versus
53
52
44
42
41
41
39
37
Team Spirit
32
30
0
20
40
60
80
100
02/ Dilemma Reconciliation
02/ Co-Opetition
The Individual and the Team
The Individual and the Team
Reward
Individual
performance
Stimulate
Team
Co-operation
Individual
Motivation
(10,10)
Reward Teams
for Individual
Creativity
AND
Reward
Individuals
for Team Work
Team Motivation
03/ Neutral versus Affective
01
Universalism verus Particularism
02
Individualism versus Communitarianism
In my society, it is considered unprofessional to
express emotions overtly.
03
Neutral versus Affective
Please select your position on the statement above:
04
Specific versus Diffuse
a) Strongly agree
b) Agree
05
Achievement versus Ascription
06
Sequential versus Synchronic
07
Internal versus External Control
c) Be undecided
d) Disagree
e) Strongly disagree
03/ Neutral versus Affective
03/ Neutral
Percentage not expressing emotions overtly
Emotions in Control
Head in
Control
81%
Ethiopia
Japan
Hong Kong
China
India
Canada
Denmark
Portugal
Sweden
UK
USA
Brasil
Italy
France
Argentina
Russia
Spain
Egypt
Kuwait
74
64
55
Continually checking what
your heart communicates
51
49
48
47
46
45
43
40
(10,10)
33
30
28
24
19
18
15
0
20
40
60
80
Heart in Passion
100
03/ Main Challenges
1. Mass-Customization
01
Universalism verus 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
2. Co-Opetition
3. It is Cool to be Emotional
4. Moments of Truth
5. Practice what you Preach
6. Just In Time Synchronizing Sequences
7. Pushing through the Pull
04/ Specific versus Diffuse
Public
04/ Specific versus Diffuse
Public
Private
Specific Relationship
04/ Encounter Specific and Diffuse
Private
Diffuse Relationship
04/ Specificity
A boss asking to paint his house
Public
Private
Private
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.
Danger Zone
04/ Specificity
04/ Encounter Specific and Diffuse
Would not paint the house
91 %
91
89
88
87
Sweden
Netherlands
Denmark
UK
Canada
USA
Australia
Japan
Mexico
T hailand
Greece
Belgium
Korea
Singapore
Venezuela
Kuwait
Nigeria
China
Remote vs Face-to-Face Management
82
78
71
70
69
67
66
65
High Tech or Hi Touch ?!
58
52
47
46
32
0
20
40
60
80
100
04/ Demanding Facts and Confidence
04/ Main Challenges
Rapport versus Report
Demanding
Facts and
Performance
On-Line
Hight Tech,
no Brokers
More Clicks
that Stick
1. Mass-Customization
2. Co-Opetition
3. It is Cool to be Emotional
4. Moments of Truth
5. Practice what you Preach
6. Just In Time Synchronizing Sequences
High Touch,
no Clients
Rapport, Trust and Confidence with Brokers
7. Pushing through the Pull
05/ Achievement versus Ascription
01
Universalism verus 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
05/ Achievement versus Ascription
• Family
• Age
• Sex
• Education
What You Do
Who You Are
STATUS ?
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’
05/ Achievement versus Ascription
05/ Achievement versus Ascription
Percentage not agreeing with acting as really suits you
Performance
Status
69 %
Australia
Canada
UK
Sweden
Denmark
Germany
Switzerland
France
Hong Kong
Mexico
Russia
China
Japan
Poland
Korea
Czech Republic
Argentina
Egypt
65
56
54
49
The
Servant
Leader
Lost
democratic
leadership
40
34
33
32
31
30
28
26
Follow the
Leader
21
20
13
12
4
0
Attibuted status by seniority or role
20
40
60
80
100
05/ Main Challenges
1. Mass-Customization
01
Universalism verus 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
2. Co-Opetition
3. It is Cool to be Emotional
4. Moments of Truth
5. Practice what you Preach
6. Just In Time Synchronizing Sequences
7. Pushing through the Pull
06/ Time Orientation
06/ Time Orientation
Past, Present and Future
Think of the past, present and future as being in the
shape of circles. Please draw three circles representing
USA
FRA
JPN
SPA
UK
GER
past, present and future. Arrange these circles in any
way you want that best shows how you feel about the
relationship of the past, present and the future. You may
use different size circles.
06/ Main Challenges
1. Mass-Customization
01
Universalism verus 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
2. Co-Opetition
3. It is Cool to be Emotional
4. Moments of Truth
5. Practice what you Preach
6. Just In Time Synchronizing Sequences
7. Pushing through the Pull
07/ Internal versus External Control
07/ Internal versus External Control
External Control
Nature as an organism
Subjugation to nature
a. What happens to me is my own doing.
b. Sometimes I feel that I do not have enough
control over the direction my life is taking.
Internal Control
Nature as a
mechanism
Dominance over
nature
07/ Internal versus External Control
07/ Main Challenges
What happens to me is my own doing
1. Mass-Customization
88 %
86
Israel
Norway
USA
UK
France
NL
Belgium
Italy
Korea
Germany
Japan
India
Czech Republic
Singapore
Kuwait
Russia
China
Venezuela
2. Co-Opetition
82
77
76
75
75
3. It is Cool to be Emotional
4. Moments of Truth
72
72
66
5. Practice what you Preach
63
63
59
57
55
6. Just In Time Synchronizing Sequences
7. Pushing through the Pull
49
39
33
0
20
40
60
80
100
Thank you !
Trompenaars Hampden-Turner
Culture for Business
OPP Oxford Dilemmas - Thursday, October 3rd, 2002
On the one hand….
On the other hand….
We want to attract international faculty
This candidate's teaching style is different
and have greater diversity
- it does not conform to our style.
We are a US owned organisation with
Future growth is most likely to come from
very successful US business
outside the US.
Core teaching requirements for fiscal
Consultancy and in-company demands of
viability
globally capable professors.
We are in danger of being clones of one
another - all middle aged, middle class, Maintain values but ensure diversity of
married with children.
workforce.
Our managers and directors are not
rewarded for displaying empathy or
We have invested in a corporate
encouraging that in their staff, rather the
management development programme
emphasis is now on what the City Analysis
that places key emphasis on empathy
is, figures and bottom line.
with the customer.
We need people to perform to a set of
We want to maintain our flexible, adult
agreed criteria.
culture.
We need to develop HR shared services We need to gear up our HR capacity to
to reduce costs and enhance service
devolve responsibility to managers and
delivery.
reduce staffing levels.
We wish to ensure that local decisions and
We wish to encourage local autonomy
approaches conform to centrally defined
and freedom in decision-making.
needs and ways of working.
We must reduce costs and standardise We must meet customers' high
products/services.
expectations of us.
Produce locally/culturally specific
We need to work using a global mindset. solutions.
We need to provide a full service with
quality products to differentiate ourselves We need to reduce our costs and save
from the competition.
cash to survive in the short-term.
We must cut costs and get people to work Internal people do not have the skills /
harder.
ability, let us use this external person.
We want to operate as a globally
Nationally based product house silos are
integrated organisation.
the key building blocks of the organisation.
Consultancy opportunities.
Research and supervision obligations
The senior team remain the same; there
FP has to change quickly its management has been no reshuffle and no change in
emphasis for the director’s skills and
style from paternalistic mutual to goknowledge.
getting plc environment.
We want to encourage increasing
internationalisation.
We need to ensure profitability.
We are seeking to develop a corporate
culture and team working.
We are rewarded for individual excellence.
We must work across functions and
levels within the organisations to share
Our systems and structure do not support
information.
this as a way of working.
Only provide full sponsorship once some
Implement change successfully (i.e.
change successes have been
demonstrated.
institutionalise the change).
We need to find a European hub to
We are bound by legislation and our
enable future growth.
heritage.