creating cultural competence

Look at the world from a different perspectiveAPG 28 April 2011

Perceptions:Perceptions:Perceptions:Perceptions:How we perceive othersHow we perceive othersHow we perceive othersHow we perceive others

““““CulturalCulturalCulturalCultural filterfilterfilterfilter”...”...”...”...

Brazilians said:Brazilians said:Brazilians said:Brazilians said:

- always in a hurry

- serious, reserved

- cautious

Americans:

Japanese said:Japanese said:Japanese said:Japanese said:

- relaxed

- friendly, spontaneous

- reckless

Brazilians said:Brazilians said:Brazilians said:Brazilians said:

- always in a hurry

- serious, reserved

- cautious

- serious, reserved

- cautious

- restrained

- composed

- methodical

- friendly, spontaneous

- reckless

- uninhibited

- emotional

- impulsive

- serious, reserved

- cautious

- restrained

- composed

- methodical

Swedes

• inflexible

• slow decisionmakers

• very careful

• punctual

• stiff• stiff

• not interested

• impolite

Symboler

Hjältar

Ritualer

Culture

Symbols

Heroes

Rituals

practices

Values

Values

Broad preferences for one state of affairs over others to which strong emotionsstrong emotions are attached

Most brands are based on values

Togetherness & Togetherness & Togetherness & Togetherness & belongingbelongingbelongingbelonging

Refresh your worldRefresh your worldRefresh your worldRefresh your world

All about we All about me

We versus Me culturesWe

In the middle

Me

The 5-D Model :

1111

2222

Power distance « PDI »« PDI »« PDI »« PDI »

Individualism / Collectivism « IDV »« IDV »« IDV »« IDV »

3333

4444

5555

Masculinity / Femininity « MAS »« MAS »« MAS »« MAS »

Uncertainty avoidance « UAI »« UAI »« UAI »« UAI »

Long term orientation « LTO »« LTO »« LTO »« LTO »

”All animals are equal

but some are more equal than others.”

Power Distance

others.”

George Orwell

Dealing with hierarchy – power distance (PDI)

The extent to which the less powerful people in a country accept and expect that power is distributed unequally

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Some examples

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RussiaRussiaRussiaRussia FranceFranceFranceFrance USAUSAUSAUSA ChinaChinaChinaChina SwedenSwedenSwedenSwedenPower DistancePower DistancePower DistancePower Distance

A major Western company conducted a market research. They called the largest distributors in Central and Eastern Europe, and asked for an opinion on their product. The response was positive, it seemed that X was at the right track. Based on the research results, new marketing plans were made, but not so much later they found out that they had received useless market

information.

Critical Incident

they found out that they had received useless market

information.

Question: What should the research company have done to receive reliable information?

Key words: respect, credibility

Dealing with relationships (IDV)

"We" cultures “Me" cultures

Looking after yourself or being a part of a group

•opinion of the group

•implicit communication

•Relationship focused

•individual opinions

•explicit communication

•Task focused

Some examples

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BrazilBrazilBrazilBrazil IndiaIndiaIndiaIndia UKUKUKUK GermanyGermanyGermanyGermany SwedenSwedenSwedenSwedenColl - IDVColl - IDVColl - IDVColl - IDV

Critical Incident

A manager of a Norwegian oil company had as one of his main responsibilities to expand the cooperation with a Saudi Arabiancompany. The Norwegian manager was very well aware thatbuilding up a good relationship would be crucial. It took him over a year before he could strike a deal. HQ was very pleased when hefinally was able to do business and gave him a promotion, and sent another colleague to be stationed in Saudi Arabia.finally was able to do business and gave him a promotion, and sent another colleague to be stationed in Saudi Arabia.Three months later nothing had happened. There was no contact between the two companies any longer, the deal was off.

Question: what went wrong?

Key words: relationship, promotion

What motivates most ? (FEM - MAS)

“soft” cultures “hard” cultures

•successful achiever is best

Emphasis on status, achievement and successin life, versus emphasis on the quality of lifeand helping others

•Lagom is best

•leveling

•consensus

•“independent” cooperation

•successful achiever is best

•status

•confrontation

•competition

Some examples

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HollandHollandHollandHolland ChileChileChileChile ItalyItalyItalyItaly PolandPolandPolandPoland SwedenSwedenSwedenSwedenFEM - MASFEM - MASFEM - MASFEM - MAS

Critical Incident

At a meeting of the International Customers Department of a Dutch international bank, American and Dutch employees participated. The Dutch wondered why every request coming from the USA was labelled “Urgent”. “If everything is urgent, than nothing is urgent”, the Dutch said. The Americans considered the Dutch attitude towards their requests sloppy. “In the US, competition among the banks is intense,” they said, and clients competition among the banks is intense,” they said, and clients easily switch to another bank if they are not one-hundred percent satisfied. Of course, you need to set priorities when everything is considered urgent. Therefore, three classes of clients existed: gold card, silver card and other clients.

Question: Question: Question: Question: Explain the different perceptions of “urgency”

Key words:Key words:Key words:Key words: client relationships, status

Vi vill ha få men effektiva regleringar, regleringar, inte många och luddiga

• need for structure and rules

• security• showing emotions

• low need for structure and rules

• risk taking• emotions not shown

easy difficult

Uncertainty tolerant – security orienteddealing with uncertainty

• showing emotions• stressful

• emotions not shown• relaxed

Some examples

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FinlandFinlandFinlandFinland FranceFranceFranceFrance IndiaIndiaIndiaIndia HollandHollandHollandHolland SwedenSwedenSwedenSwedenUncertaintyUncertaintyUncertaintyUncertainty

avoidanceavoidanceavoidanceavoidance

A sales campaign for a toilet cleaning product was set outfrom Swiss headquarters. The campaign showed both in advertisements and tv-commercials a man in a suit coveredwith a white coat promoting the product with the use of many details and showing how effective the product was for spotless cleaning and hygiene. Sales were good and the same campaign was set out in many other countries.

Critical Incident

spotless cleaning and hygiene. Sales were good and the same campaign was set out in many other countries. Unfortunately not with similar results.

Question:Question:Question:Question: Why did this campaign appeal to the Swiss but not to the Dutch, English and Scandinavians?

Key words:Key words:Key words:Key words: expertise, detailed information

Short or Long term orientation

Short term focus

•absolute truth

•short term orientation

•quick results expected

Long term focus

•many truths (time, context)

•long term orientation

•perseverance•quick results expected

•spending for today

•perseverance

•saving for tomorrow

Some examples

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BrazilBrazilBrazilBrazil IndiaIndiaIndiaIndia USAUSAUSAUSA ChinaChinaChinaChina SwedenSwedenSwedenSwedenShort - Long termShort - Long termShort - Long termShort - Long term

Critical Incident

When a government official of China went to Sweden he said ‘A’. Back home afterwards everybody told him, how could you have said ‘A’? Didn’t you realise it was ‘B’? He then said, ‘Of course, it’s B.’ When the Swedes found out they all got very upset and said; ‘Hey, you’re cheating. First A and now you say B.’ they all got very upset and said; ‘Hey, you’re cheating. First A and now you say B.’

Question:Question:Question:Question: How did the Chinese explain his behaviour?

Key words:Key words:Key words:Key words: context, ultimate truth

Some insights

Markets are people

Global markets don’t consist of global consumers

Sales people from country A don’t necessarily

and foreign markets are foreign people

Sales people from country A don’t necessarily know how to sell in country B

There are no global success formulas

Collectivistic and PDI+ cultures are taking over

Growth

World GDP distribution

6%51% 51%

21%

16%

51% 51%

12%

creating cultural competence

Sveavägen 98 (V) 113 50 Stockholm, SwedenTel: 08 21 21 15E-mail: gigi@itim.orgwww.itim.org