Cross-Cultural Management SI-K Exportcoop SEE 12 March 2015 Michael J. Gates Vice Chairman RICHARD LEWIS COMMUNICATIONS Associate Fellow, Said Business School, University of Oxford © 2001, 2004 Richard D Lewis Fundamentals of Communication © 1998, 2010 Richard D Lewis Getting to the Point © 1998, 2010 Richard D Lewis GERMAN “I don’t agree” © 2001, 2004 Richard D Lewis ENGLISH “Hmm, that’s a very interesting idea” © 2001, 2004 Richard D Lewis AMERICAN “You gotta be kidding” © 2001, 2004 Richard D Lewis ITALIAN “Let’s go and have a Campari and talk about it tomorrow” © 2001, 2004 Richard D Lewis FINN “…………………” © 2001, 2004 Richard D Lewis The Iceberg of Culture Food Arts Fashion Mass Media Communication Patterns speech styles non-verbal communication Use of Space and Time listening habits eye contact audience expectations interpersonal distance silence Culture hides more than it reveals, and it hides most effectively from its own participants … E.T.Hall Values national characteristics world views attitudes Behaviors social norms taboos Homogeneous vs. Diverse Teams/Groups Based on 1. Creating value with diverse teams in global management, J.J. DiStefano; M.L.Maznevski, Organizational Dynamics, Vol. 29, No 1 2. Dr C. Kovach’s research, UCLA © 2001, 2010 Richard D Lewis © 2001, 2010 Richard D Lewis STEREOTYPES SHOULD BE… • accurate • used consciously • descriptive, not evaluative • modified from time to time • used as a first “best guess” © 2001, 2004 Richard D Lewis Percentage of respondents who said they would probably NOT lie in court © 1998, 2011 Richard D Lewis LAYERS OF CULTURE NATIONAL REGIONAL PROFESSIONAL / EDUCATIONAL GENDER CLASS RELIGIOUS GENERATIONAL ETHNIC CORPORATE PERSONAL © 2001, 2004 Richard D Lewis Areas of Cross Cultural Misunderstanding 1. Values – core beliefs – national characteristics – attitudes and world view 2. Communication patterns – speech styles – listening habits 3. Concept of time 4. Concept of space © 2001, 2004 Richard D Lewis © 2001 Richard D Lewis © 2001, 2004 Richard D Lewis Human Mental Programming – UK – © 2001, 2004 Richard D Lewis Human Mental Programming – Germany – © 2001, 2004 Richard D Lewis Human Mental Programming – Austria – © 2001, 2004 Richard D Lewis Human Mental Programming – Slovenia – © 2001, 2012 Richard D Lewis Human Mental Programming – Croatia – © 2001, 2012 Richard D Lewis Human Mental Programming – Serbia – © 2001, 2009 2012 Richard D Lewis Cultural Horizons and Aristotle’s Liking Principle © 2001, 2004 Richard D Lewis French – USA Horizons © 2001, 2004 Richard D Lewis Cultural Categories LINEAR-ACTIVE MULTI-ACTIVE REACTIVE © 2001, 2012 Richard D Lewis © 2001, 2010 Richard D Lewis © 2001, 2009 Richard D Lewis © 2001, 2004 Richard D Lewis © 2001 Richard D Lewis Aristotle’s Rhetoric Logos Ethos Pathos + Agora National Communication Patterns – Italy – © 2001, 2004 Richard D Lewis National Communication Patterns – Finland – © 2001, 2004 Richard D Lewis National Communication Patterns – Germany – © 2001, 2004 Richard D Lewis National Communication Patterns – Austria – © 2001, 2004 Richard D Lewis National Communication Patterns – UK – © 2001, 2004 Richard D Lewis British Coded Speech What is said Hm….interesting idea You could say that We must have a meeting about your idea What is meant What a stupid suggestion I wouldn’t Forget it We shall certainly consider it We won’t do it I’m not quite with you on that one That is totally unacceptable I agree, up to a point I disagree © 2001, 2011 Richard D Lewis National Communication Patterns – USA – © 2001, 2004 Richard D Lewis © 2001, 2010 Richard D Lewis Listening Habits – Germany – © 2001, 2004 Richard D Lewis Listening Habits – USA – © 2001, 2004 Richard D Lewis National Communication Patterns – Slovenia – © 2001, 2004 Richard D Lewis National Communication Patterns – Croatia – © 2001, 2009 2012 Richard D Lewis National Communication Patterns – Serbia – © 2001, 2009 2012 Richard D Lewis Homogeneous vs. Diverse Teams/Groups Based on 1. Creating value with diverse teams in global management, J.J. DiStefano; M.L.Maznevski, Organizational Dynamics, Vol. 29, No 1 2. Dr C. Kovach’s research, UCLA © 2001, 2010 Richard D Lewis Success Factors of CREATOR teams: 1. Mapping 2. Bridging 3. Integrating © 2001, 2010 Richard D Lewis Negotiation Styles Negotiators in Linear-Active cultures will: • Demonstrate and look for technical competence • Place facts before sentiments, logic before emotion • Be deal oriented, with a view to immediate achievement and results – time is money Multi-Active cultures • Rely on their eloquence and ability to persuade – negotiation is an art • Use human force as an inspirational factor • Complete human transactions emotionally Negotiators in Reactive cultures will: • Dominate with knowledge, patience and quiet control • Display modesty and courtesy • Create a harmonious atmosphere – building up trust is key © 2001, 2010 Richard D Lewis Leadership Styles © 2001, 2011 Richard D Lewis Leadership style – Austria – © 2001, 2012 Richard D Lewis Leadership style – Slovenia – © 2001, 2012 Richard D Lewis Leadership style – Serbia – © 2001, 2012 Richard D Lewis Leadership Styles – Russia – © 2001, 2011 Richard D Lewis Trust variance © 2001, 2004 Richard D Lewis Golden Rules for Interacting with Linear-Active People (1) • Talk and listen in equal proportions • Do one thing at a time • Be polite but direct • Partly conceal feelings • Use logic and rationality • Interrupt only rarely • Stick to facts • Concentrate on the deal • Prioritise truth over diplomacy • Follow rules, regulations, laws • Speech is for information © 2001, 2004 Richard D Lewis Golden Rules for Interacting with Linear-Active People (2) • Maintain word-deed correlation • Complete action chains • Stay results-oriented • Stick to agenda • Compromise to achieve deal • Respect officialdom • Respect contracts and written word • Reply quickly to written communication or e-mails • Restrain body language • Look for short-term profit • Be punctual © 2001, 2004 Richard D Lewis Golden Rules for Interacting with Multi-Active People (1) • Let them talk at length • Reply fully • Be prepared to do several things at once • Be prepared for several people talking at once • Display feelings and emotion • People and feelings are more important than facts • Interrupt when you like • Truth is flexible and situational • Be diplomatic rather than direct • Speech is for opinions • Be gregarious and socialising © 2001, 2004 Richard D Lewis Golden Rules for Interacting with Multi-Active People (2) • Think aloud • Complete human transactions • Digress from agenda and explore interesting ideas • Seek and give favours with key people • Remain relationship-oriented • Spoken word is important • Contracts may often be renegotiated • Reputation is as important as profit • Overt body language and tactility • Accept unpunctuality © 2001, 2004 Richard D Lewis Golden Rules for Interacting with Reactive People (1) • Good listening is important • Do not interrupt • Do not confront • Do not cause anyone to lose face • Do not disagree openly • Suggestions, especially criticism, must be indirect • Be ambiguous, so as to leave options open • Statements are promises • Prioritise diplomacy over truth • Follow rules but interpret them flexibly • Speech is to promote harmony © 2001, 2004 Richard D Lewis Golden Rules for Interacting with Reactive People (2) • Share as much as you can • Utilise networks • Talk slowly • Do things at appropriate times • Don’t rush or pressure them • Observe fixed power distances and hierarchy • Show exaggerated respect for older people • Go over things several times • Face-to-face contact is important • Work hard at building trust • Long term profit is preferable • Be punctual © 2001, 2004 Richard D Lewis