Fons Trompenaars Understanding Cultural Diversity in Business Riding the Waves of Culture Valencia...
Transcript of Fons Trompenaars Understanding Cultural Diversity in Business Riding the Waves of Culture Valencia...
Fons Trompenaars
Understanding Cultural Diversity in Business
Riding the Waves of Culture
Valencia 10th April 2008
The old MBA paradigm
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We know this right?
Lets now do it with one line.
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The new MBA paradigm: with ONE line
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The new MBA paradigm
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The new MBA paradigm
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But you have to fold the paper
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“Successful leaders have the propensity and
competence to help organizations and its teams
reconcile dilemmas for better sustainable business
performance”
Core Proposition
This approach leads to concrete and measurable actions…Im
pac
t
Time
RecognizeIncrease Awareness
RecognizeIncrease Awareness
Respect Appreciate
Cultural Differences
Respect Appreciate
Cultural Differences
ReconcileResolve Cultural
Differences
ReconcileResolve Cultural
Differences
Realize and RootImplement
Reconciling Actions
Realize and RootImplement
Reconciling Actions
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To Create Wealth is to Combine
Values that are not easily joined…
Therefore scarce...
Therefore profitable….
Approaching Dilemmas: Navigating Strategic Tensions
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Some hard evidence…
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Source: 21 Leaders for the 21st Century p429
Correlation
(Spearman’s coefficient of rank correlation)
Correlation between reconciliation and 360o feedback by peers and subordinates
0.71
Correlation between reconciliation and bottom line business performance in profit centre/budget stream
0.69
Our research reveals that propensity to reconcile dilemmas
correlates with bottom line business performance
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What is Culture?
Please define culture
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A model of Culture
Implicit Culture
Explicit Culture
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Is a dynamic process of solving human problems/dilemmas
in the areas of…
- Human Relationships
- Time
- Nature
About Culture
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01/ The Car Accident
What happens to your friend?
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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.
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01/ Dilemma:
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…
INTEGRITY
01
02
03
04
05
06
07
Universalism versus Particularism
Individualism versus Communitarianism Individualism versus Communitarianism
Neutral versus AffectiveNeutral versus Affective
Specific versus DiffuseSpecific versus Diffuse
Achievement versus AscriptionAchievement versus Ascription
Sequential versus SynchronicSequential versus Synchronic
Internal versus External ControlInternal versus External Control
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01/ Universalism vs Particularism
• Consistency
• Systems, standards &
rules
• Uniform procedures
• Demand clarity
• Flexibility
• Pragmatic
• Make exceptions
• “It depends”
• At ease with ambiguity
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54
61
73
74
75
83
85
87
88
90
91
92
92
93
97
0 20 40 60 80 100
RussiaChina
BulgariaGreeceFrancePoland
SpainCzech Republic
HungaryGermanyRomania
NetherlandsUK
SwedenIreland
USASwitzerland
01/ Universalism
Friend has no/some right and would not help
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79 78 76 7464 63
53 53
0
20
40
60
80
100
120
Universalism
LGL
HR
FIN
R&D
ADM
MFG
PA
MKT
Universalism versus Particularism
average score
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01/ Dilemma:
Global Standards (Critical Mass)
Cultural Diversity (Differing solutions)
Globalism and Localism
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01/ Globalize and Localism
X(10,10)
Global Standards (Critical Mass)
“Be like US”
Transnational Centers of Excellence
Cultural Diversity (Differing solutions)
Small Nations
Multi-Localism
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01/ Main Challenges
1. Mass-Customization
2. Co-Opetition2. Co-Opetition
3. It is Cool to be Emotional3. It is Cool to be Emotional
4. Moments of Truth4. Moments of Truth
5. Servant Leader5. Servant Leader
6. Just In Time Synchronizing Sequences6. Just In Time Synchronizing Sequences
7. Pushing through the Pull7. Pushing through the Pull
Universalism versus ParticularismUniversalism versus Particularism
Individualism versus Communitarianism
Neutral versus AffectiveNeutral versus Affective
Specific versus DiffuseSpecific versus Diffuse
Achievement versus AscriptionAchievement versus Ascription
Sequential versus SynchronicSequential versus Synchronic
Internal versus External ControlInternal versus External Control
01
02
03
04
05
06
07
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02/ Individualism versus Communitarianism
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.’
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.’
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4144
4650
525354
5759606061
63646566676869
81
0 20 40 60 80 100
FrancePortugal
GreeceIreland
ItalyGermany
NorwayBelgium
PolandRussia
SwedenUK
SpainFinland
NetherlandsSwitzerland
DenmarkCzech
USARomania
02/ Individualism
Percentage opting for Individual Freedom
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Reward Individual
Performance
Stimulate Team
Co-operation
02/ Dilemma Reconciliation
The Individual and the Team
Individual Motivation
Team Motivation
(1,10) Me, Myself and Withholding
Information
02/ Dilemma Reconciliation
The Individual and the Team
Team Motivation
Team Mediocrity
02/ Dilemma Reconciliation
The Individual and the Team
Individual Motivation
(5,5)
Go for the Small team
Team Motivation
02/ Dilemma Reconciliation
The Individual and the Team
Individual Motivation
Reward Teams for Individual
Creativity
AND
Reward Individuals
for Team Work
Team Motivation
(10,10)
02/ Dilemma Reconciliation
The Individual and the Team
Individual Motivation
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1. Mass-Customization1. Mass-Customization
2. Co-Opetition
3. It is Cool to be Emotional3. It is Cool to be Emotional
4. Moments of Truth4. Moments of Truth
5. Servant Leader5. Servant Leader
6. Just In Time Synchronizing Sequences6. Just In Time Synchronizing Sequences
7. Pushing through the Pull7. Pushing through the Pull
02/ Main Challenges
01
02
03
04
05
06
07
Universalism versus Particularism Universalism versus Particularism
Individualism versus CommunitarianismIndividualism versus Communitarianism
Neutral versus Affective
Specific versus DiffuseSpecific versus Diffuse
Achievement versus AscriptionAchievement versus Ascription
Sequential versus SynchronicSequential versus Synchronic
Internal versus External ControlInternal versus External Control
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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) Be undecided
d) Disagree
e) Strongly disagree
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03/ Neutral versus Affective
1924
29
3032333435
38394041
4344
45464647
50
5970
0 20 40 60 80 100
SpainRussiaIrelandFrance
SwitzerlandItaly
DenmarkGermany
GreeceNorway
BelgiumFinland
USACzech
UKNetherland
SwedenPortugalBulgariaAustriaPoland
Percentage not expressing emotions overtly
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03/ Neutral versus Affective
How to select the Right Person?
Myers Briggs Type Indicator (MBTI)
Myers Briggs Type Indicator (MBTI)
DILEMMA
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03/ Neutral versus Affective
Emotions in Control
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03/ Neutral versus Affective
Emotions in Control
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03/ Neutral versus Affective
Head in Control
Heart in Passion
Analysis,Paralysis
(1,10)
Emotions in Control
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03/ Neutral
(10,1)
Loving Neurotic
Head in Control
Heart in Passion
Emotions in Control
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03/ Neutral
Continually checking what
your heart communicates
(10,10)
Head in Control
Heart in Passion
Emotions in Control
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1. Mass-Customization1. Mass-Customization
2. Co-Opetition2. Co-Opetition
3. It is Cool to be Emotional
4. Moments of Truth4. Moments of Truth
5. Servant Leader5. Servant Leader
6. Just In Time Synchronizing Sequences6. Just In Time Synchronizing Sequences
7. Pushing through the Pull7. Pushing through the Pull
03/ Main Challenges
01
02
03
04
05
06
07
Universalism versus Particularism Universalism versus Particularism
Individualism versus Communitarianism Individualism versus Communitarianism
Neutral versus AffectiveNeutral versus Affective
Specific versus Diffuse
Achievement versus AscriptionAchievement versus Ascription
Sequential versus SynchronicSequential versus Synchronic
Internal versus External ControlInternal versus External Control
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04/ Specific versus Diffuse
PUBLIC
PRIVATE
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04/ Specific versus Diffuse
PUBLIC PUBLIC
Specific Relationship
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04/ Specific versus Diffuse
PUBLICPRIVATE
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04/ Specific versus Diffuse
No Relationship
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04/ Specific versus Diffuse
Diffuse Relationship
PRIVATEPRIVATE
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04/ Encounter Specific and Diffuse
PUBLIC
PRIVATE
Danger Zone
PRIVATE
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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.
04/ Specificity
A boss asking to paint his house
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6567
7173
7680
82838384
888889898989909191
0 20 40 60 80 100
AustriaGreece
SpainPortugal
PolandNorway
USABelgium
GermanyIrelandFrance
UKBulgaria
CzechDenmark
FinlandSwitzerlandNetherland
Sweden
04/ Specificity
Would not paint the house
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Specific Financial Performance
Diffuse Development of
People
From the Balanced to the Integrated Score Card
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Sp
ecif
ic f
inan
cial
per
form
ance
Integrated growth:
Train for Cost
Cutting
Cost cutting yourself
Interests in future innovating and learning
Subsidised seminar
From the Balanced to the Integrated Score Card
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1. Mass-Customization1. Mass-Customization
2. Co-Opetition2. Co-Opetition
3. It is Cool to be Emotional3. It is Cool to be Emotional
4. Moments of Truth
5. Servant Leader5. Servant Leader
6. Just In Time Synchronizing Sequences6. Just In Time Synchronizing Sequences
7. Pushing through the Pull7. Pushing through the Pull
04/ Main Challenges
01
02
03
04
05
06
07
Universalism versus Particularism Universalism versus Particularism
Individualism versus Communitarianism Individualism versus Communitarianism
Neutral versus AffectiveNeutral versus Affective
Specific versus DiffuseSpecific versus Diffuse
Achievement versus Ascription
Sequential versus SynchronicSequential versus Synchronic
Internal versus External ControlInternal versus External Control
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05/ Achievement versus Ascription
STATUS ?
What You Do Who You Are
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05/ Achievement versus Ascription
• Family
• Age
• Gender
• Education
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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’
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1313
16192021
2527
30333334
394041
4954
5665
77
0 20 40 60 80 100
Czech RepublicSpain
BulgariaHungaryRomania
PolandAustriaGreece
NetherlandsFrance
ItalySwitzerland
PortugalGermany
FinlandDenmark
SwedenUK
IrelandNorway
05/ Achievement versus Ascription
Percentage not agreeing with acting as really suits you
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05/ Achievement versus Ascription
Attributed status by seniority or role
Performance Status
Lost
democratic
leadership
Follow the
Leader
The Servant
Leader
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1. Mass-Customization1. Mass-Customization
2. Co-Opetition2. Co-Opetition
3. It is Cool to be Emotional3. It is Cool to be Emotional
4. Moments of Truth4. Moments of Truth
5. Servant Leader
6. Just In Time Synchronizing Sequences6. Just In Time Synchronizing Sequences
7. Pushing through the Pull7. Pushing through the Pull
05/ Main Challenges
01
02
03
04
05
06
07
Universalism versus Particularism Universalism versus Particularism
Individualism versus Communitarianism Individualism versus Communitarianism
Neutral versus AffectiveNeutral versus Affective
Specific versus DiffuseSpecific versus Diffuse
Achievement versus AscriptionAchievement versus Ascription
Sequential versus Synchronic
Internal versus External ControlInternal versus External Control
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06/ Time Orientation
Think of the past, present and future as being in the shape of circles.
Please draw three circles representing 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.
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06/ Time Orientation
1.45 3.00
1.45 - 2.00
Sequential
Synchronic3.00 - 3.15
Sequential versus Synchronic
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06/ Time Orientation
JUST IN TIME
Sequential versus Synchronic
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1. Mass-Customization1. Mass-Customization
2. Co-Opetition2. Co-Opetition
3. It is Cool to be Emotional3. It is Cool to be Emotional
4. Moments of Truth4. Moments of Truth
5. Servant Leader5. Servant Leader
6. Just In Time Synchronizing Sequences
7. Pushing through the Pull7. Pushing through the Pull
06/ Main Challenges
01
02
03
04
05
06
Universalism versus Particularism Universalism versus Particularism
Individualism versus Communitarianism Individualism versus Communitarianism
Neutral versus AffectiveNeutral versus Affective
Specific versus DiffuseSpecific versus Diffuse
Achievement versus AscriptionAchievement versus Ascription
Sequential versus SynchronicSequential versus Synchronic
Internal versus External Control
07
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07/ Internal versus External Control
Internal Control
Nature as a
mechanism
Dominance over
nature
External Control
Nature as an organism
Subjugation to nature
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07/ Internal versus External Control
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.
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5659
6266666768
70717272
7475757676777777
86
0 20 40 60 80 100
BulgariaCzech
PortugalGermanPolandGreeceFinlandRomaniSwedenBelgium
ItalyDenmarAustria
NetherlaFrance
SpainIreland
SwitzerlUK
Norway
07/ Internal versus External Control
What happens to me is my own doing
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Balanced Score Card Dilemma…
From the Balanced to the Integrated Score Card
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Inner Directed Improvements
in Business Processes
Outer directed increase in customer satisfaction
From the Balanced to the Integrated Score Card
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Inn
er d
irec
ted
im
pro
vem
ents
Integrated growth:
Pushing through the
Pull
Outer directed increase in customer satisfaction
Lean but mean
Customer’s creature
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1. Mass-Customization1. Mass-Customization
2. Co-Opetition2. Co-Opetition
3. It is Cool to be Emotional3. It is Cool to be Emotional
4. Moments of Truth4. Moments of Truth
5. Servant Leader5. Servant Leader
6. Just In Time Synchronizing Sequences6. Just In Time Synchronizing Sequences
7. Pushing through the Pull
07/ Main Challenges
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Dilemma Theory Resolving Strategic Issues
DILEMMA(from the Greek meaning)
TWO-PROPOSITIONS IN (APPARENT) CONFLICT
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Either - Or
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And - And
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Through - Through
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Integrate central with decentral
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Vicious and Virtuous Circles
Thank You !
To download this presentation:
Go to www.thtconsulting.com
Password = space2008
Fons Trompenaars
Valencia 10th April 2008