The Impact of Cultural Differences on Global Business

1. The Impact of Cultural Differences
on Global Business
Culturewise Limited
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2. Objectives and agenda
• To raise awareness of the
impact of culture and
cultural differences on
international business
• To reflect on practical on
strategies for working more
effectively with colleagues
from different cultural
backgrounds
• About Culturewise
• Four key questions…
1. What is culture?
2. Why is culture important in
business?
3. Where does culture impact on
business?
4. How can we work more
effectively across cultures?
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3. About Culturewise
• Culturewise provides cultural awareness training and
coaching for clients from every major business sector
• Context is ‘Globalisation’ – just like every of aspect of global
business, cross-cultural issues need to be managed
effectively
• Three key training areas
– Country-specific (i.e. China, India, Middle East, etc.)
– Role-specific (i.e. Global Team Leaders, International Assignees, etc.)
– Sector-specific (i.e. Retail, Financial Services, Law, etc.)
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4. What is culture?
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5. A definition of culture
Which definition of culture do you prefer? Why?
1. “The way in which a group of people solves problems
and recognises dilemmas”
2. “Ideas, values and assumptions about life that guide
specific behaviours”
3. “The way we do things in our business”
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6. Thinking about culture
…as an Iceberg
20% Visible
80% Invisible
Listening
styles
Beliefs about
silence
Basic truths
Communication
styles
Beliefs about formality
Values
Beliefs about
hierarchy
Language and non-verbal
communication
Rituals and
symbols
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7. ...many of the challenges in working
with people from different cultures
are below the cultural surface
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8. Key ‘below the surface’ cultural
differences at work
Rely on leader for decisions? Rely on self for decisions?
Communicate implicitly? Communicate directly? Ask Qs?
Who do you need to know? What do you need to know?
As long as it takes? Time is money?
Follow formality / protocol? Informal and casual?
Follow the rules? Respond flexibly to each situation
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9. Why is culture important in
business?
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10. The importance of culture for
individuals and organisations
Challenges...
• A source of uncertainty
• Cultural mistakes and ‘faux
pas’ cause tensions and
misunderstandings
• Tendency to see simplistic
(stereotypical) explanations of
other behaviours
• Mindsets of cultural superiority
- “win-lose“ and “us-and-them“
thinking
Challenges...
• Different answers to key
questions
– What is ethical?
– What is important?
– What is worthwhile?
– What is urgent and should
have priority?
– What is ‘reasonable’ and
‘unreasonable’?
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11. Challenges of
globalisation
for
international
& virtual
teams
Different
countries,
cultures,
languages
Different
heritage and
functions
Matrix working
and team
dynamics
Technology
Utility, access
and training
Trust
‘Us’ versus
‘Them’,
magnified by
distance
Communication
Electronic ‘body
language’
Team
complexity
Geography and
isolation
out of sight, out
of mind
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12. Where does culture impact on
business?
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13. Key challenges in Western / Asia-
Pac business interactions
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14. Relationship-building
Western Task-
Based Networks
Asian
Relationship-
Based
Networks
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15. Low-Context Communication
(i.e. Germany, Netherlands)
High-Context Communication
(i.e. Japan, China)
Words WordsContent
Context
Facial expressions
Gestures
Facial expressions
Gestures
Relative status
Relationship
Tone of voice
‘Face’ considerations
Content
Context
British English
Direct versus
Indirect communication
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16. • More or less OK
• A little disappointing
• Let’s talk about something else.
• I do not like your idea at all.
• Very interesting...
• Your idea is rubbish.
• We won’t take this idea any further.
• Maybe we could consider some
other options.
• Do it or else….• Perhaps you might like to think
about…
• I am annoyed
• I completely disagree with you
• I am a bit disappointed…
• With respect…
• Not bad
• Quite good
British indirectness?
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17. How can we work more effectively
across cultures?
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18. Stereotypes and generalisations
• Definition: Stereotype
– A fixed, unvarying idea
about something or
someone
– Believing that people of a
certain group, race or
religion are all the same
• ‘Danger’ words
– Always, never, all, none,
only
– ‘You know what they’re like’
• Definition: Generalisation
– A principle, statement or
idea having general
application
• Selective descriptions
– Some, often, seldom, may,
could, possibly, generally
– ‘In certain circumstances’
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19. Effective cross-cultural
communication
Consider who you are talking to.
• What are their expectations
and assumptions?
Consider your own
communication style.
• Are you being clear enough?
• How do you come across?
Consider your listening style.
• Are they really saying what
you think they are saying?
Consider your language.
• Can you say it more
effectively?
Consider whether you are
understanding everything
correctly.
• Are you asking for enough
clarification?
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20. Six practical steps to global
business effectiveness
1. Be aware of difference
and be flexible
2. Learn to tolerate
uncertainty as a
continuous process
3. Understand “surface”
culture and “deep” culture
– Look for non-verbal cues
– Recognise our own
“Cultural lens”
4. Choose the best
communication style for
each situation
5. Be aware of individual
differences
6. And remember some
things you will never
understand
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