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Adapt your strategy to the Brazilian culture - 20121108
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4. Introduction
Communication
Differences
Changes
NeoFocus
Many European companies entering Brazil are mislead by apparent similarities resulting from
strong historical links between the two regions
Apparent similarities
• Language: Portuguese
• Latin culture
Migration
20th century
• Catholic country (over 85%)
• Independent since 07th September 1822
• Federal republic since 15th November 1889
Trading
Colonization
17th century
Migration
20th century
Colonization
17th c..
Colonization
16th century
Colonization
16th century
Slave trade
16th century
© NeoFocus Strategy Consulting – All rights reserved
Adapt your strategy to the Brazilian culture - 20121108
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5. Introduction
Communication
Differences
Changes
NeoFocus
One of the keys to a successful project is the cohesion between individual stakeholders,
which derives from mutual understanding, efficient communication, and construction of a
durable relationship based on mutual trust
Understand
Communicate
In a cross-border context,
understanding what drives
the interlocutor and the
constraints he has to deal
with from a cultural and
contextual point of view
conditions the alignment of
objectives
Misunderstandings and
ambiguities must be limited or
eliminated to ensure constant
and efficient transmission of
instructions and feedback
between individuals without
losing meaning
Successful
project
Build
Leveraging points of
convergence between
individuals and teams while
explaining and defusing points
of divergence generates
openness and mutual trust
between individuals
Source : NeoFocus analysis
© NeoFocus Strategy Consulting – All rights reserved
Adapt your strategy to the Brazilian culture - 20121108
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6. Introduction
Communication
Differences
Changes
NeoFocus
Various elements of our environment directly influence our individual or collective
communication and decision-making processes
Family
circle
Social
circle
Natural
environment
Professional
circle
Institutions
Society
Macroeconomics
History
Religion
Source : NeoFocus analysis
© NeoFocus Strategy Consulting – All rights reserved
Adapt your strategy to the Brazilian culture - 20121108
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8. Introduction
Communication
Differences
Changes
NeoFocus
Different local cultural environments generate different thought processes, personal goals
and courses of actions
Communication
issues
Diverging objectives
Diverging decisionmaking process
Diverging solutions
Diverging results
interpretation
Success factor
Determine cultural differences and their potential impact as early as possible in a project
Source : NeoFocus analysis
© NeoFocus Strategy Consulting – All rights reserved
Adapt your strategy to the Brazilian culture - 20121108
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9. Introduction
Communication
Differences
Changes
NeoFocus
Language and cultural references directly impact upstream and downstream message
interpretation, resulting in possible distortion
Message distortion in cross-cultural communication
« If we seek to understand a people, we must try to put ourselves, in that particular historical and cultural background »
« If we wish to convince them, we must use their language, not language in the narrow sense of the word, but the language of the mind »
(Nehru, prime minister of India from 1947 to 1964)
Sent
message
Decoding
Encoding
Perceived
message
Intended
message
Sender
Recipient
Intended
message
Perceived
feedback
Decoding
Source : Nancy J. Adler, desk research, NeoFocus analysis
© NeoFocus Strategy Consulting – All rights reserved
Sent
feedback
Encoding
Adapt your strategy to the Brazilian culture - 20121108
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10. Introduction
Communication
Differences
Changes
NeoFocus
To mitigate distortion, it is vital to evaluate the weight of the cultural impact on interpretation,
and to qualify the nature of that impact
Qualification de
Impact
l’impact ?
qualification ?
Impact
Quantification de
quantification ?
l’impact ?
Success factors
Encoding /
decoding
• Understand one’s own culture
• Understand the recipient’s culture
Intended
message
• Evaluate the weight of each culture on
potential message distortion
Sender
Perceived
message
Qualification / quantification of
distortion ?
Source : E. Hall, NeoFocus analysis
© NeoFocus Strategy Consulting – All rights reserved
Adapt message accordingly
Recipient
Adapt your strategy to the Brazilian culture - 20121108
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11. Introduction
Communication
Differences
Changes
NeoFocus
Latin American and Mediterranean cultures generate higher distortion in message
communication than North European and Anglo-Saxon cultures
« High context » and « low context » cultures : Edward Hall, anthropologist (USA 1914-2009)
High context cultures
Intended
message
Low context cultures
Few words convey complex ideas
Concept
Explicit and exhaustive formulation
Allegories, parables,
contextual interpretations,
non-verbal communication
Perceived
message
Intended
message
« What you see is what you get »:
Limited space to ambiguousness
and interpretation
Other common characteristics:
- Closed groups (clubs, distinctions, titles, etc…)
- Strong inter-personal links
- Several concentrical community circles
- Long to initiate, but lasting relationships
- Collectivism
- Flexibility
- Priority to process over result
Other common characteristics:
- Open groups (fast food, informal forums, etc…)
- Priority to necessity over relationship
- Easy to initiate, but shorter-term relationships
- Individualism
- Results matter more than process
Illustration: Southern Europe, Latin America, Asia, Africa, Russia
Perceived
message
Illustration: Anglo-Saxon, Scandinavian, Germanic countries
Mitigation
Make any “cross-culture” message as neutral, explicit, factual as possible unless the destination culture and its impact on
interpretation is deeply understood
Source : E. Hall, NeoFocus analysis
© NeoFocus Strategy Consulting – All rights reserved
Adapt your strategy to the Brazilian culture - 20121108
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13. Introduction
Communication
Differences
Changes
NeoFocus
Cultural differentiation can be measured according to 5 dimensions
Cultural dimensions: Geert Hofstede, psychologist (Netherlands, born in 1928)
Geert Hofstede’s work and methodology
Concept
Geert Hofstede’s 5 « cultural dimensions »
Power
distance
From 1967 to 1973, G. Hofstede
interviews several thousand IBM
employees located in 70 countries.
During the following 20 years, he fine-tunes and
validates his concept on several other large-scale
population samples: students, foreign office civil
servants, flight attendants, etc…
Statistical and analytical data available today covers 74
countries, including several Asian nations, the USA
and most European countries.
Long term
orientation
Individualism
Cultural
differentiation
Uncertainty
avoidance
Source : Geert Hofstede, desk research, NeoFocus analysis
© NeoFocus Strategy Consulting – All rights reserved
Assertiveness
Adapt your strategy to the Brazilian culture - 20121108
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14. Introduction
Communication
Differences
Changes
NeoFocus
Brazilian and French cultures can be mapped according to Hofstede’s concept, providing
visual evidence of their greatest points of convergence and / or divergence
Cultural profile mapping based on G. Hofstede’s concept
… but everything is relative...
Brazil and France: some contrasts…
Distance
Hiérarchique
100
100
Power distance
Brazil
Brésil
Italy
Italie
France
80
80
60
Germany
Allemagne
40
60
20
40
Orientation Long
Long term
orientation
Terme
Individualisme
Individualism
0
20
0
USA
100
80
Uncertainty
Aversion à
avoidance
l'Incertitude
China
60
Assertivité
Assertiveness
40
20
Power
distance
Individualism
Assertiveness
Uncertainty Long term
avoidance
orientation
Brazil
69
38
49
76
65
France
68
71
43
86
0
39
NOTE : Long Term Orientation may not have been measured on some countries and may be approximated based on similar cultures
Source : Geert Hofstede, desk research, NeoFocus analysis
Adapt your strategy to the Brazilian culture - 20121108
© NeoFocus Strategy Consulting – All rights reserved
14
15. Introduction
Communication
Differences
Changes
NeoFocus
The relationship to hierarchy is pretty similar in France and in Brazil: hierarchical structures
and organizations, and management methods should be easily transferable
“Power Distance”: comparative positioning and characteristics
Flat
Hierarchical structures
Multiple, substantial delegation
Vertical
Decisional centers
High
Centralized, little delegation
Individual autonomy
Not required
Necessary
Compensation structure
Non-existent
High disparities
Physical demarcation
10
20
30
40
Source : Geert Hofstede, desk research, NeoFocus analysis
© NeoFocus Strategy Consulting – All rights reserved
50
60
Success factors in Brazil
• Despite an often very open and
friendly first contact, allow time to
get acquainted and establish
trust
Low
Demonstration of respect
Low disparities
0
Concept
Visible
70
80
90
• Pay attention to signs indicating
difference of status/power
(social lift / service lift)
• Identify the real decision
makers, even discrete ones
100
Adapt your strategy to the Brazilian culture - 20121108
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16. Introduction
Communication
Differences
Changes
NeoFocus
The Brazilian society experiences strong social ties between individuals, involving more
collective goals and rewards than in France
“Individualism”: comparative positioning and characteristics
Public recognition of
achievements
Recognition
Concept
Individual fulfilment, material rewards
Truth
Less important than harmony
Paramount
Success factors in Brazil
• In family businesses, the leader
often decides based on the
interests of a larger group than
himself: his family, his employees,
his network,…
• Note: a “yes” does not necessarily
mean “yes”
Privacy
Fundamental right
Decisional priorities
Individual interest
No object
Group interest
0
10
20
30
40
Source : Geert Hofstede, desk research, NeoFocus analysis
© NeoFocus Strategy Consulting – All rights reserved
50
60
70
80
90
• Discussing one’s private life at
work: frequent in Brazil, much less
so in France
100
Adapt your strategy to the Brazilian culture - 20121108
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17. Introduction
Communication
Differences
Changes
NeoFocus
Assertiveness in relationships between individuals is similar in France and in Brazil ; in both
cases, the role of women is less differentiated vs. men than in many other countries
“Assertiveness”: comparative positioning and characteristics
Low
Gender behaviourial differentiation
Weak
High
Role assignation
Naturally equal to males’
Strong
Respect for females’ success
Competitiveness
20
30
• Historically, women have been
working for a long time and in
large proportions in the Brazilian
society
Mimic male behaviour
Weak (sympathy)
10
Success factors in Brazil
Subject to discussion
KSF for female success
Non specific
0
Concept
40
Source : Geert Hofstede, desk research, NeoFocus analysis
© NeoFocus Strategy Consulting – All rights reserved
50
Strong (combativeness)
60
70
80
90
100
Adapt your strategy to the Brazilian culture - 20121108
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18. Introduction
Communication
Differences
Changes
NeoFocus
Brazilian and French cultures differ significantly in terms of risk acceptance: this difference
may result in a permanent gap in transnational projects
“Uncertainty Avoidance”: comparative positioning and characteristics
Informal
Professional attitude
Secondary: strategy is more important
Necessary to evolution
Very formal
Importance given to details
Vital
Perception of differences
Unavoidable
Destabilizing, subversive
Threatening
Perception of change
Futile, useless
Perception of rules and procedures
Inherent to life
Perception of risk
0
10
20
30
Concept
40
Source : Geert Hofstede, desk research, NeoFocus analysis
© NeoFocus Strategy Consulting – All rights reserved
50
Vital to safety / security
Must be avoided at all costs
60
70
80
90
Success factors in Brazil
• « God is Brazilian » vs. French
freewill
• Brazilians are informal… but
know how to adapt (and survive
crises)
• A compromise is required on the
degree of formalization expected
in a transnational project (hence
the importance of mutual trust)
• A dual management is often the
right framework to steer a project /
train teams
100
Adapt your strategy to the Brazilian culture - 20121108
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19. Introduction
Communication
Differences
Changes
NeoFocus
Brazilian society is still quite traditional in many ways, despite an informal appearance
“Long Term Orientation”: comparative positioning and characteristics
Individuals with equal rights
Basis of society
Free
Constrained by social rules
Parental authority
Self-acquisition
10
Strong
Knowledge acquisition
Less important than skills
0
Clan, family
Creativity
Limited
Concept
20
40
Source : Geert Hofstede, desk research, NeoFocus analysis
© NeoFocus Strategy Consulting – All rights reserved
50
More important than skills
60
• Some decisions may be motivated
by respect for tradition rather than
efficiency
• Respect is due to elders and
sometimes precedes actual skills
Formal education
Respect for age
30
Success factors in Brazil
70
80
90
100
NOTE : Long Term Orientation may not
have been measured on some countries
and may be approximated based on similar
cultures
Adapt your strategy to the Brazilian culture - 20121108
19
21. Introduction
Communication
Differences
Changes
NeoFocus
Inequalities are diminishing but still structure the Brazilian society
Revenue sharing trend, decrease of extreme poverty
Illustration
Total aggregated
revenue, Bn US$
% of population
below poverty level
(2 US$/day)
180000
25
160000
Population
< 2 US$ / day
140000
20
120000
1st quintile
15
100000
80000
10
2nd
60000
quintile
3rd quintile
40000
5
20000
4th quintile
0
5th quintile
2001
2002
Source : World Bank, NeoFocus analysis
© NeoFocus Strategy Consulting – All rights reserved
2003
2004
2005
2006
2007
2008
0
2009
Adapt your strategy to the Brazilian culture - 20121108
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23. Introduction
Communication
Differences
Changes
NeoFocus
NeoFocus assists its clients in all aspects of their growth initiatives: we provide professional
services to imagine, design, execute and protect their successful development
Our vision
Strategy
Corporate
finance
Organic growth
External growth
Profitability growth
Portfolio management
M&A
Joint ventures
Restructuring
Specialized
practices
Antitrust
Innovation
© NeoFocus Strategy Consulting – All rights reserved
Adapt your strategy to the Brazilian culture - 20121108
23
24. Introduction
Communication
Differences
Changes
NeoFocus
NeoFocus is organized to provide professional services to support our customers’ growth
initiatives
Our professional practices
Our customers’
growth projects
Sustainable and profitable growth
Organic
growth
Our assistance
Strategy practice
.
External
growth
Profitability
expansion
Corporate finance
practice
• Strategic Advisory
• M&A
• Strategic Consulting
Specialized practices
.
• Joint ventures
• Strategic Training
Portfolio
management
• Competition law cases
/ antitrust
• Restructuring
• Innovation Booster
Local teams
© NeoFocus Strategy Consulting – All rights reserved
Experts
Adapt your strategy to the Brazilian culture - 20121108
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25. Introduction
Communication
Differences
Changes
NeoFocus
Our international network allows us to conduct worldwide projects with integrated local
teams
Our international network of local professionals
Inside access
to international markets
Paris
Munich
Zurich
New York
Vienna
Geneva
New Delhi
São Paulo
© NeoFocus Strategy Consulting – All rights reserved
Tokyo
Shanghai
Chennai
Team Language Fluency:
French
English
German
Spanish
Italian
Portuguese
Hindi
Tamil
Mandarin
Japanese
Cantonese
Russian
Team Business Experience:
North America
China
Western Europe India
Russia
South Africa
Brazil
Argentina
Australia
SE Asia
Japan
Adapt your strategy to the Brazilian culture - 20121108
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26. Introduction
Communication
Differences
Changes
NeoFocus
NeoFocus has a strong international reach that is reinforced by local market experts as well
as a large network of industry experts with considerable strategy consulting experience
Our differentiation
Expertise
Unbiased recommendations
• Sectorial expertise
• Strategy and specialized practices
• NeoFocus is an independent group, 100% owned by its
founders
• We provide our services with complete objectivity, and
make our recommendations with freedom and in the
sole interest of our customers
•
•
•
•
Senior, highly experienced consultants
Partners are directly involved in each assignment
Local teams in each country
Over 250 customers and 850 projects over 10 years
• We deliver fact-based, unbiased opinions to address
our customers’ issues
• We provide recommendations to the best of our
professional expertise
• Structured, proven proprietary methodologies
• guaranteed quality levels
• can be passed on to client teams via training
• Wide networks of experts (sectorial or functional
expertise)
• We develop long term, trust-based relationships with
our customers
• We ensure confidentiality & discretion
© NeoFocus Strategy Consulting – All rights reserved
Adapt your strategy to the Brazilian culture - 20121108
26
27. Introduction
Communication
Differences
Changes
NeoFocus
Our customers’ growth initiatives benefit from NeoFocus’ assistance: results achieved are
improved, and costs and risks incurred are reduced
Some benefits of NeoFocus’ assistance
More growth
• Better growth projects
• Better execution of growth
projects
• Increased understanding and
support from the organization
Less risks
• Better risk contingency
planning
• Transfer of successful ideas
from other sectors
© NeoFocus Strategy Consulting – All rights reserved
More predictability
More sustainability
• Improved transparency
• Improved predictability
• Proven NeoFocus
methodologies
• Improved competitive
advantage
Less uncertainty
Less waste of resources
• Better understanding of the
environment
• Better allocation of existing
resources
• Improved transparency
Adapt your strategy to the Brazilian culture - 20121108
27
28. Introduction
Communication
Differences
Changes
NeoFocus
The speaker founded and manages the Paris office of NeoFocus
Your contact
Jérôme Kelber
Managing Partner
Paris / France
Jerome Kelber has over 15 years of consulting experience in
Europe, the US, Brazil and North Africa. He has extensive
industry knowledge in a broad range of industrial sectors, including
agribusiness, mining, materials, aerospace and defense, electronics, clean
techs and biotech, but also service industries, such as IT, B-to-B services,
telecom, specialized retail and private equity.
Jerome Kelber has advised multiple leading European corporations on
organic growth strategies, new business development, international
expansion, M&A operations and post-merger integration.
Prior to setting up his own practice, Jerome Kelber was a senior project
manager at Roland Berger & Partners, a global management strategy
consultancy.
Prior to working in strategy consulting, Jerome Kelber acquired extensive
M&A experience for over 6 years with Morgan Stanley and Calyon, mainly
in cross-border M&A transactions. He also developed a strong experience
in innovation and high‐tech engineering consulting, with global leader in
R&D outsourcing Altran, mainly in the telecom network operators.
Jerome Kelber graduated from Ecole Centrale de Paris (Engineering and
Economics) and holds a master in Economics & Finance from University of
Paris I La Sorbonne.
Jerome Kelber has been a private pilot since 2001 and holds an instrument
rating (IR-ME) since 2011.
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Adapt your strategy to the Brazilian culture - 20121108
28
29. 42, avenue Montaigne
75008 Paris
France
Tél: +33 (0) 1 42 27 13 00
Fax: +33 (0) 1 46 39 01 82
www.neofocus.fr
info@neofocus.fr
Strictly confidential
Adapt your strategy to the Brazilian culture - 20121108
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