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Cooperation between Nordic companies and their Mexican subsidiaries Cultural differences, efficiency, communication and managerial challenges ________________________________________ Survey by Human House 2012 Representations and native consultants covering East Africa, West Africa, China, India, Russia, Mexico, Scandinavia, UK and USA

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Page 1: Intercultural Survey MX-Nordic

Cooperation between Nordic companies and their Mexican subsidiaries

Cultural differences, efficiency, communication and managerial challenges

________________________________________

Survey by Human House 2012

Representations and native consultants covering East Africa, West Africa, China, India, Russia, Mexico, Scandinavia, UK and USA

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Preface

Human House would like to thank all the companies and individuals from companies for

responding in so large numbers and with so many useful comments to this survey.

Also we would like to thank for the great hospitality we have met during visits to companies

in Mexico and Denmark and for the many ideas and suggestions we have received to the

survey. The participation in meetings and seminars from the Nordic Chamber, Nordic

embassies and all the private companies has proved that the subject has a great importance to

many people.

Finally but very essential we would like to thank the Mexican Embassy in Copenhagen and

the Danish Embassy in Mexico City for support, advice and practical assistance to our work.

It was most encouraging how the two ambassadors from the beginning took a personal

interest in the survey and how the staffs at both embassies were equally courteous when

providing professional services and informal advice.

For free copies of the report please contact us: [email protected]

For a free presentation and discussion in your company in Danish, Spanish or English, call us

directly on +45 70 10 90 80 or send an email.

Jan Hyttel Cecilia Hubard Hugette Cervantes

Managing Director International Consultant International Consultant

[email protected] [email protected] [email protected]

- Please refer to page 33 for further contact details.

www.humanhouse.com

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INDEX

A. Executive Summary …………………………………………………….…. 4 B. Facts about the survey ……………………………………………………. 5 C. The surveys headlines …………………………………………………….. 7 D. The survey in Details ……………………………………………………….. 9

1. National culture and work place culture

2. Applying and implementing new rules and procedures set by HQ

3. Relations to colleagues

4. Positive and negative perceptions of leadership

5. The need for certainty

6. Written statements - extract from survey

7. Stereotypes - testing if they are a real challenge or not

E. Recommendations from Human House …………………………………. 26 1. Considerations when working internationally

2. Culture on three levels

- Region, organisation, individual

3. Coordinating and managing

- Time zones, virtual teams, out posting, lines of command

4. Analysing the regional and national differences

5. Analysing the organisational culture

6. The trip goes to Mexico - remember the big five from the survey

F. Contact info ………………………………………………………………….. 33

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A. Executive Summary Mexico and Latin America is an expanding market and a target equally for export and for

distribution and production of goods.

A large number of Danish and Nordic companies have established branches and subsidiaries

in the region.

This 2012 survey by Human House has aimed to investigate what kind of differences,

challenges, similarities and possibilities arises when the Head Quarter of the company is

placed in the Nordic area and the subsidiary is placed in Mexico.

When Nordic participative culture with low hierarchy at the work place meets the Mexican

hierarchical culture with huge socio demographic differences what happens to efficiency and

cooperation?

The bottom line is that the two cultures seems to socialise quite well and actually even

to like each other on the personal level, but the practical cooperation and efficiency is

burdened by a number of differences in preferences in regards to organising and

managing the work.

The Mexicans would like the Nordics to be available and present on site in Mexico to

enable a close teamwork, but the Nordics like to delegate and not give instructions and

in large numbers prefers to have a local director employed.

The Mexicans find that procedures and systems - neither internal nor external towards

the customers - don't fits very well into the Mexican context, but the Nordic

headquarters don't think they should be adjusted.

The basic differences and the attached challenges known from other cultural studies

and researches are confirmed by the almost 100 participating 'real life' managers in

2012.

Combining the respondents written comments and the statistical data a major challenge

- maybe the major challenge - is expressed as illustrated in this small figure.

It's positive to delegate.

- But it's negative to follow up

and to give instructions.

It's positive to have a close

teamwork.

- But it's negative not to have

a running dialogue.

Enjoy the report and feel free to contacts us for explanations and further discussions.

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B. Facts about the survey

In 2011 Human House decided to set up an office and operations in Mexico. With a native

born Mexican consultant working for Human House in Denmark as team leader a number of

activities was started. The most important of these was to collect more knowledge about the

cooperation between Danish (Nordic) and Mexican companies and managers.

In close cooperation with the Danish Embassy in Mexico City and the Mexican Embassy in

Copenhagen several steps were taken.

Interviews

During 2011 qualitative surveys was made in Denmark and in Mexico. Primarily by visiting

and interviewing a number of HQ directors in Denmark and sales directors and country

responsible in Mexico. From these interviews we concluded some areas of interest for further

investigation. It appeared that there were some challenging differences in workplace cultures

and national cultures. Also different perceptions of procedures, norms and politics were

mentioned several times and common stereotypes were mentioned as not only being

stereotypes but also being true. The interviews were analysed and created the basic for the

following quantitative, internet based survey.

After the internet based survey some of the data has been tested and clarified through another

round of interviews.

Internet based survey

Early 2012 the internet based survey was send to CEO's, managers and a few other key

informants. Through the Nordic Chamber in Mexico not only Danish but all Nordic

companies were invited to participate, based on the assumption that the challenges would be

the same for companies from that region OR for Mexicans cooperating with any Nordic

culture. Names and mailing lists were created still in cooperation with the embassies

mentioned above.

As the target group consisted of the actual CEO's and managers of the companies the

expectations were set to 'any number of respondents higher than 30' would give us useful data

and representation. Eventually the result was more than 80 answers and in addition to this

more than 50 respondents had used the opportunity to enter additional written comments in

the survey. We take this as a proof that the subject is important and the categories of questions

were relevant.

Demography in the survey

The Nordic group of managers from headquarters is for obvious reasons smaller than

the Mexican and represent approximately 25% of the answers and Mexicans 75%.

'Nordics' are actually Danes apart from a very few respondents from Norway and

Sweden. As these respondents correlate 100% in their answers, we have handled them

as one group.

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'Mexicans' are 95% Mexicans and a few other Latin Americans. Also here the

respondents correlate.

90% of all respondents indicate that they represent high or middle management.

More than 90% have Master degrees or similar.

60% have had positions abroad in longer periods.

Indicating totally that the results are coming from precisely the people in power in Denmark

and the Nordic area and in Mexico.

How can this survey be used? This survey is not intended to be scientific, but merely aim at providing information that can

be of use when establishing collaborations between Mexican and Nordic organisations.

The purpose of this survey is to highlight the cultural similarities and differences between

Mexican and Nordic work place cultures. By doing this it has become apparent what potential

strengths and weaknesses that lies in a close collaboration between Mexican and Nordic

business cultures. The survey has highlighted what Mexican and Nordic managers in

organisations value; appreciate and wish for in their work life. Taken together, these aspects

provide companies with an invaluable overview of what to take into account when creating

productive collaborations between Mexico and the Nordic region.

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C. Conclusions and headlines from the survey The main conclusions from all the different parts of the survey are listed below and are

representing a short cut to the findings. In the report the headlines will be repeated for each

chapter and explained by use of the surveys data and graphics.

There is a considerable difference between the normal workplace culture in

Mexico and the Nordic area.

This is evident in different expectations to employees being involved in decision

making: Nordics anticipate involvement, Mexicans do not. Likewise, Nordics do not

think that employees rely on managers for direction in their home countries, whereas

Mexicans believe that employees highly rely on managers for direction is expected in

Mexico.

The differences in national workplace culture have been equalized to Nordic style

in the Mexican subsidiaries.

The workplace culture is equalized into a mainly Nordic culture in the subsidiaries in

Mexico. Especially in questions related to power distance it seems that small Nordic

workplace islands has been created in Mexico.

Communication and expectations about work tasks are unclear

In some cases close related to communication and delegation the perception of the

situation is totally different between the two target groups.

The Mexican are technically able to implement new rules set by HQ, but would

generally like to make some 'tropical' adjustments.

Mexicans perceive HQ guidelines to be implementable. However, they don’t agree

with or recommend the guidelines.

The Nordics to some extent also believe the procedures can be implemented, but

don’t' think they fit in very well.

The Nordics are only to a limited extend ready to discuss adjustments.

Neither Mexicans nor Nordics think the procedures fits very well into a Mexican

context, but they do not agree on what to do.

It is important for both Mexicans and Nordics to have friendly relationships with

their co-workers.

Nordics delegate but don't like giving instructions and following up

This seems paradoxical from a Mexican point of view, since delegation of tasks must,

to some extent, depend on giving instructions about the task to the subordinate.

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Mexicans like teamwork and being able to follow up

The Mexican group emphasises that being left without possibility of communicating is

a problem and that clear lines of command and teamwork is positive.

Mexicans like to be sure, 'better safe than sorry', Nordics don't want to be

restricted by rules

In professional business we keep the rules both in Mexico and the Nordic area

Neither Nordics nor Mexicans think that rules are meant to be broken. An interesting

questions, though, is if they have same tolerance for when and how much is regarded

as 'breaking rules'. The written comments found in the survey indicate different

perspectives.

Statements about Mexicans: Rule followers, respects hierarchy

Statements about the Nordics: Hard working, strict, formal, goal oriented

Nordics are punctual – Mexicans are late

Mexican and Nordics seem to have different standards of how important it is to be on

time or even more important; what it means to be on time.

Mexicans don't say 'NO'.

Both Mexican and Nordics agree that it is a challenge that Mexicans are generally not

very clear and assertive.

Nordics think they are rude, but that's not a challenge. The real challenge is that

they don’t give positive feed-back.

Nordics think they understand Mexican culture - the Mexicans doubt it

The Nordics don’t think, that it is a challenge that only Latins truly understand the

meaning of “mañana” – the Mexicans on the other hand, think that it is a challenge.

Some stereotypes don't exist….

In three questions there are no real hit from the many respondents. The Mexicans

think that Mexicans don't prioritize well, but the Nordics don't find it a problem. The

Nordics think it's some kind of a challenge that Nordics like improvise while working,

but the Mexicans don't find it a challenge. Finally neither Mexicans nor Nordics find it

a challenge that Nordics in democratic fashion treats everybody equal OR they don't

really recognise this behaviour at all.

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D. The survey in details

1. National work culture and work culture in the current company

This section deals with the surveyors’ evaluation of culture and norms in their home country

and in company. The participants were asked to answer to what degree they agree on different

statements – first considering their home country and then their company. The statements will

give a picture of the participants need for certainty and their perception of the hierarchical

work structure.

There is a considerable difference between the normal workplace culture in

Mexico and the Nordic area.

Cultural differences are perceived high between the work place culture in Mexico and

the Nordic area. This result supports the exiting evidence from ITAP International and

Human House' databases and findings. 80 managers' answers strongly support this

fact. See differences in figures number 1, 4, 5, 7.

Overall this section indicates that cultural differences need to be considered in the

cooperation between Nordics and Mexicans. There is a difference between what is

expected in a Mexican work context and a Nordic one. This is evident, for example, in

different expectations to employees being involved in decision making: Nordics

anticipate involvement, Mexicans do not. Likewise, Nordics do not think that

employees rely on managers for direction in their home countries, whereas Mexicans

believe that employees highly rely on managers for direction is expected in Mexico.

The differences in national workplace culture have been equalized to Nordic style

in the Mexican subsidiaries.

The workplace culture is equalized into a mainly Nordic culture in the subsidiaries in

Mexico. Especially in questions related to power distance it seems that small Nordic

workplace islands has been created in Mexico. (Figures 1, 5, 7)

When Mexicans and Nordics asses how the statements fit their own company, an

interesting tendency is uncovered: The two groups agree more on expectations and

conditions in their company than in their home countries. This is of great importance

as it indicates that differences rooted in nationalities can be equalized in cooperation.

Communication and expectations about work tasks is unclear

In some case close related to communication and delegation the perception of the

situation is totally different between the two target groups. (Figures 2, 3)

Even if the difference between the Nordics and the Mexicans is generally diminishing

when it comes to the company, there are two related cases of increasing difference,

namely in the respondents’ indication of whether tasks are clearly presented and if

they are ambiguous and less well defined. In this case the Nordics do not think that

tasks are well defined whereas the Mexicans do.

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Results from the survey

Figures 1 – 7 on Workplace culture

Figure 1:

Managers consult employees and expect them to

participate in decision making?

Percentage of answers that agree or highly agree. Divided into answers from the Nordic group and the Mexican group and separately showing the

respondents perception of home country culture and their organisational culture.

Employees participate in decisions in Nordic workplace culture but not in Mexican. But in the Mexican

subsidiaries, Nordic style seems to be duplicated.

According to these ratings, employees are judged to be far more likely to be consulted by their managers in

Nordic countries than in Mexican companies. Furthermore, Mexicans rate this to be much more likely in their

own workplace than in Mexican companies on general.

Figure 2:

Work tasks are clearly presented?

Percentage of answers that agree or highly agree. Divided into answers from the Nordic group and the Mexican group and separately showing the

respondents perception of home country culture and their organisational

culture.

45- 50 % of both Nordic and Mexican managers agree that work tasks are generally clearly presented in their

home country.

With regards to their company the Nordics’ evaluations are the same, but the Mexicans’ evaluations are quite

different - almost 80% agree on this! So the Mexican judge that work tasks in their company are presented in a

significantly clearer fashion, than in other Mexican companies.

Figure 3:

Work tasks are ambiguous and less defined

Percentage of answers that agree or highly agree. Divided into answers from

the Nordic group and the Mexican group and separately showing the respondents perception of home country culture and their organisational

culture.

Home country Company

Home country Company

Home country Company

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About 35% of the Mexicans and 45% of the Nordics agree that works tasks in their home country are generally

ambiguous and less defined. However there is a much larger difference with regards to the evaluations of the

work tasks at their company. Here, approximately 15% of the Mexicans agree, whereas 45% of the Nordic

respondents agree. Hence, the Nordic level remains the same, while the Mexicans perceive the work tasks at

their company to be considerably less ambiguous and less defined”, than the work tasks in their home country in

general.

Figure 4:

A manager only makes decisions appropriate to his or her

level?

Percentage of answers that agree or highly agree. Divided into answers from the Nordic group and the Mexican group and separately showing the

respondents perception of home country culture and their organisational culture.

This is an evaluation, of whether managers only make decisions appropriate to their level. The Nordic group

tend to disagree that this is the case in their home country, whereas almost 70% of Mexicans agree. This

difference is somewhat minimized with regards to the evaluations of the company, but still the Nordics agree

considerably less than the Mexicans.

Figure 5:

Employees rely on their manager for direction?

Percentage of answers that agree or highly agree. Divided into answers from

the Nordic group and the Mexican group and separately showing the respondents perception of home country culture and their organisational

culture.

Employees are judged to rely much more on their manager for direction in Mexico, than in Nordic Countries; but

again, Nordics and Mexicans agree on the level of manager-reliance within their own company, and furthermore

the company level is judged to be in between of the general Mexican and the general Nordic level of employees’

reliance on their managers.

Figure 6:

It is more important to get work done than to go through

official channels?

Percentage of answers that agree or highly agree. Divided into answers from the Nordic group and the Mexican group and separately showing the

respondents perception of home country culture and their organisational

culture.

Home country Company

Home country Company

Home country Company

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Almost 70 % of the Nordics agree that it is more important to get work done than to go through official channels

in their home country. Only 50% of the Mexicans agree. The two bar charts actually look quite similar, but there

seems to be a tendency for the managers to agree less on the statement when it comes to their company.

Figure 7:

An organisation with fewer levels of management functions

better?

Percentage of answers that agree or highly agree. Divided into answers from

the Nordic group and the Mexican group and separately showing the

respondents perception of home country culture and their organisational

culture.

Almost all (95%) of the Nordics but only about 55% of the Mexicans, agree that an organization with fewer

levels of management, functions better in their home country. The difference is much smaller with regards to the

company in which they are employed, but still the Nordics tend to agree more than their Mexican colleagues.

Home country Company

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2. Applying and implementing new rules and procedures set by HQ

This section is focusing on procedures, norms and rules coming from Nordic HQs to the

Mexican subsidiaries.

The Mexicans are technically able to implement the new rules set by HQ, but

would generally like to make some adjustments.

This section has highlighted some interesting points regarding implementation of HQ

procedures. Most importantly, it shows that the Mexicans perceive HQ guidelines to

be implementable. However, they don’t agree with or recommend the guidelines, but

believe that it would be an advantage to make some adjustments to fit better into the

organisation and the country.

The Nordics to some extent also believe the procedures can be implemented, but

like their Mexican colleagues they don’t' think they fit in very well.

Nonetheless the Nordics are only to some limited extend ready to discuss

potential adjustments as it is important to them, that the company has a fixed

international standard.

There is a potential conflict in the fact that neither of the two groups thinks the

procedures fits very well into a Mexican context, but doesn't agree on what to do.

Two very central set of questions and answers compares the different perceptions of

procedures, norms and rules. (Please compare with graphics next page.)

Column one - can things be implemented in Mexico:

The Mexicans feel that it is – to some extend – easy to implement all the rules, standards and

procedures set by HQ. The Nordics’ evaluation of how easy this implementation is for the

subsidiary in Mexico looks very much the same.

Column two - do they fit well in Mexico?

This figure shows both Nordic and Mexican evaluations of the compatibility between the

rules, standards and procedures set by HQ, and the Mexican context in which the HQ

guidelines is to be implemented. The answers of the two groups are quite similar, but within

each group there is no general trend. Most remarkable is the fact that only between 33 and

36% in each group thinks that the procedures actually fit well.

Column three - will and may we make adjustments?

The Mexicans would generally like to make some adjustments to the new rules set by HQ.

The Nordics judge that HQ only to a limited extent is willing to discuss adjustments.

Column four - will adjustments be useful or permitted?

The Mexicans say that it would be useful to make some modifications to the rules set by HQ.

The Nordics on the other hand say that it is important that the subsidiary implement all rules

so the company keeps an international standard.

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Agree and totally agree

Neutral

Disagree and totally disagree

Figure 8 and 9:

Four corresponding pairs of questions were aimed at respectively the Nordic and Mexican

respondents:

Mexican questions and answers

1. It is easy for you and your team to

implement all the rules, standards and

procedures set by HQ?

2. The rules, standards and

procedures set by HQ fit well into the

Mexican context?

3. When HQ sends new rules,

standards and procedures you would

like to make adjustments?

4. It would be useful to make some

modifications to rules, standards or

procedures so they adapt to your

country?

Nordic questions and answers

1. It is easy for the subsidiary in

Mexico to implement the rules,

procedures and standards set by HQ?

2. The rules, standards and

procedures set by HQ fit well into the

Mexican context?

3. When implementing new rules,

standards and procedures HQ are

willing to discuss adjustments?

4. It is necessary that the subsidiary

implements all rules, standards and

procedures so the company keeps an

international standard?

1 2 3 4

1 2 3 4

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3. Relations

How is the interaction with colleagues at work? How do people like to interact with their

colleagues and is it necessary to have friendly relationships with colleagues?

It is important for both Mexican and Nordic managers and employees to have friendly

relationships with their co-workers. If they somehow experience a negative

relationship to a co-worker it can have detrimental effects on their performance.

Figure 10:

It is important to

maintain friendly

relationship with

my co-workers?

Both the Mexicans and the Nordics generally say that it is important to have a friendly

relationship.

Figure 11:

It may cause

deterioration in my

performance if I do not

maintain good

relationship with my

co-workers?

They generally agree that it will cause deterioration in their performances if they do not

maintain good relationships.

0

10

20

30

40

50

60

70

80

No Yes

Nordic region

Mexico

0

10

20

30

40

50

60

No Yes

Nordic region

Mexico

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4. Positive and negative perceptions of leadership

The respondents have been asked about their preferences - likes and dislikes - when

performing and receiving leadership. The illustrations below are extracts from the survey,

please note that the actual questions contained longer sentences.

Nordics delegate but don't like giving instructions and following up

The Nordic group likes to delegate and coach but will not give instructions and follow

up. They score high on delegating assignments to subordinates, but are less interested

in giving instructions and following up on subordinates’ work. This could seem

paradoxical, since delegation of tasks must, to some extent, depend on giving

instructions about the task to the subordinate.

Mexicans like teamwork and being able to follow up

The Mexican group emphasises that being left without possibility of communicating is

a problem and that teamwork is positive.

Figure 12:

The Positive words on leadership:

The Mexican group answers that positive leadership is about encouraging team work, focusing on results and

coaching. The Nordics prefer delegation, coaching and focusing on results. Although they apparently generally

seem to agree on what the important aspects of positive leadership is there are major differences when looking

into the details. Please refer also to some of the written remarks in a later chapter.

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Figure 13:

The Negative words on leadership

The Mexicans say that the negative aspects of leadership are: Improvising, communicating only when asked and

supervising. It should also be noted that in the Mexican group a high number compared to the Nordics actually

defined 'delegating' as being a negative word. The Nordic groups say: Giving instructions to subordinates,

improvising and supervising.

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5. Certainty

This section concerns the surveyors’ need for certainty in their work. In some situations it can

also be expressed as the need to avoid uncertainty i.e. how often do a person double check,

ask for instructions and rely to the framework of rules and guidelines.

Mexicans like to be sure, better safe than sorry, Nordics don't won't to be

restricted by rules

The Mexicans generally prefer a high degree of structure, with well-defined rules and

job-tasks. For the Nordics it is exactly the opposite. They thrive with loosely defined

job-tasks, a minimum of rules, and they generally prefer flexibility over structure.

In professional business we keep the rules both in Mexico and the Nordic area

Neither Nordics nor Mexicans think that rules are meant to be broken. An interesting

questions, though, is if they have same tolerance for when and how much is regarded

as 'breaking rules'. The written comments found in the next chapter indicate different

perspectives.

Figure 14:

I feel comfortable with well-

defined rules and practices?

The Mexicans feel much more

comfortable with well-defined

rules than Nordic people do.

Figure 15:

I am happy with uncertainty and

risk-taking?

Nordic respondents are more

comfortable with uncertainty

and risk-taking than Mexicans

are.

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Figure 16:

Rules are meant to be broken?

Neither Mexican nor Nordic

people agree on the statement

that rules are made to be

broken. Although the amount

of 'no' = highly disagree to the

far left among the Nordics is

much lower than the Mexican

answers.

Figure 17:

There should be no more rules

than strictly necessary?

Nordic people - almost 70% -

feel that there should be no

more rules than what is

strictly necessary. Only 35%

of the Mexicans agree that

there should only be a

minimum of rules.

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6. Written statements that qualify the data

As a part of the survey, the surveyors were asked to provide written statements about the

different sections of the survey, in order to promote a more detailed understanding of their

viewpoints. Among other things, the surveyors were asked to provide written statements

about the characteristics of both Mexican and Nordic workers in general. In this section, a

brief summary of these descriptions will be presented. It is subject to both the words the

respondents by random have chosen to use and to the extract that has been made from the

many pages of text.

Statements about Mexicans

Both Mexican and Nordics see Mexican workers as rule-followers, who respect

authorities, and so, feel very comfortable with working in hierarchical organizations.

This reflects what is concluded from the quantitative data.

Statements about the Nordics

The Mexican and Nordics agree that Nordic workers are generally hard working, goal

oriented and independent. The Mexicans also think that Nordic workers are strict and

formal. Again these statements seem to be a good reflection of the quantitative data.

Figure 18:

A simple text analysis with the most frequently used words in bold:

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General:

Afraid of hierarchy

Need constant follow-up

Not always focus on their work

Some quotes: “Not too attached to the rules and creative at

work”.

“Highly professional, but less sensitive to

guidelines, punctuality and strict rules”.

“… however Mexicans in global companies work

until they have finished their work, no matter if you

leave the office at 21:00hrs

“Priority is not the office”

General:

Flexibility in mind set.

Willing to try new initiatives, challenges and

development.

Personal relations ships are important.

Respectful towards authorities.

Some quotes:

“Bad at following through”.

“More talkative during working hours, however

longer working hours”.

“… younger generation is eager to learn new

things, willing to challenge ideas when giving the

right environment…”.

“Personal relationship is important”.

“Friendly and a little disorganized”.

“Difficult to get a personal opinion from before

they see what direction is the wind blowing”.

General:

Result oriented

Tend to believe that their way of doing things is the

only way.

Try to get fast to the goal.

Some quotes:

“Easy adaptors and good to follow through”

“Less talkative during working hours, however

shorter working hours”.

“…To some extend harder to implement new

initiatives in Denmark…”.

“Business is strictly professional”.

General:

Very strict, formal and demanding.

Passive

Some quotes:

“Attached to the rules, norms and timing”.

“Very efficient, with high regard for planning and

structure.”

“Nordics close the door at 16:58hrs and after that

you cannot expect any extra effort, no matter if they

did not finish their work…Summer put them out of

this world, but the world continues spinning…”

“Not so warm at work”

“Very respectful but not very cheerful”

“… sometimes sarcastic”.

“A bit Naive, assume people will do things just

because they are being told”.

“Intelligent but with a square mind”.

Figure 19 - Mexicans about Mexicans Figure 20 - Nordics about Mexicans

Figure 21 - Nordics about Nordics Figure 22 - Mexicans about Nordics

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7. Stereotypes - 'Is it a challenge that….?'

We have asked the surveyors for their stereotypes of Mexicans and Nordics. This section has

a fun and intended provoking character. It can however be useful by pointing out issues that

are potentially problematic, or at least worth paying attention to in a corporation.

It may be noted, that we actually didn't ask IF the various statements were true, but merely if

they were causing a problem. Hence given correct responses from the respondents 'yes' will

indicate that it's a problem and therefore also true, whereas 'no' could equally mean 'it's true

but not a problem' or simply 'it's no problem because it's not true'.

Nordics are punctual – Mexicans are late

Both groups agree that it is a challenge that Mexicans are often late. The Mexicans

generally do not think that it is a challenge that the Nordics are punctual, whereas the

Nordics actually to some degree see this as a challenge.

So overall the Mexican and Nordics seem to have different standards of how

important it is to be on time or even more important; what it means to be on time. This

is obviously a potentially problematic difference that should be considered, when

creating collaborations between Mexican and Nordic organisations. (Figures 23, 24)

Mexicans don't say 'NO'.

Both Mexican and Nordics agree that it is a challenge that Mexicans are generally not

very clear and assertive when they disagree with something/someone, and that they

find it difficult to defend their point of view. In sum, the Mexicans are viewed as

submissive and not good at saying no. (Figures 25, 26, 27)

Nordics think they are rude, but the real challenge is to give positive feed-back.

The Nordics don’t think that it is a problem, that they are generally not interested in

giving feedback and congratulating the team when accomplishing goals – the

Mexicans on the other hand disagree, and see this as a challenge! The Nordics can

appear rude when asking for things – the Nordics see this as a problem, whereas the

Mexicans don’t. (Figures 28, 29)

Nordics think they understand Mexican culture - the Mexicans doubt it

The Nordics don’t think, that it is a challenge that only Latins truly understand the

meaning of “mañana” – the Mexicans on the other hand, think that it is a challenge.

It seems that the Nordics think that they know the Mexican culture as well as their

impact on it. But more importantly, it seems that the Mexicans don’t totally agree with

the Nordics’ perceptions, but actually see things differently. (Figure 30)

Some stereotypes doesn't exist

In three questions there are no real hit from the many respondents. The Mexicans

think that Mexicans don't prioritize well, but the Nordics don't find it a problem. The

Nordics think it's some kind of a challenge that Nordics like improvise while working,

but the Mexicans don't find it a challenge. Finally neither Mexicans nor Nordics find it

a challenge that Nordics in democratic fashion treats everybody equal OR they don't

really recognise the behaviour at all. (Figures 31, 32, 33).

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Results from the survey

Understanding the graphs

All questions have been asked with the beginning: 'Is it a challenge that..?'

The percentages on the graphs reaches from No challenge to Challenge and the three midst

positions not labelled are indicating 'tendency to no challenge', 'neutral' and 'tendency to

challenge'.

Figures 23 – 33 on Stereotypes - Is it a challenge that…..:

Figure 23:

Mexicans are often late?

Figure 24:

Nordics are extremely punctual?

Figure 25:

The cultural differences among the

different socio-economical classes in

Mexico are huge?

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Figure 26:

Mexicans are not very clear and assertive

when they disagree?

Figure 27:

Mexicans find it difficult to complain and

defend their point of view?

Figure 28:

Nordics are not so much into giving

feedback or congratulate the team when

accomplishing goals?

Figure 29:

The Nordics can appear rude in the way

they ask for things?

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Figure 30:

Only Mexicans and other Latins truly

understand the meaning of “mañana” or

“ahorita”?

Figure 31:

Mexicans are generally not very good at

prioritizing their tasks?

Figure 32:

Nordics like to improvise while

working?

Figure 33

Nordic people treat everybody in

the same way?

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E. Recommendations from Human House 1. Considerations when working internationally

There is more than one correct way to do things, but there is also a number of wrong ways to

do them.

For any organisation working on a domestic or international level the basic advice should

always be, 'whatever you do; do it consciously'!

Internationally there is not one right way to do things, so you will have to make up a lot of

decisions and choices and most probably compromise on several issues and learn by doing.

On the other hand the fact that there is more than one right way to do things doesn't mean that

all choices could be equally good. There are many wrong ways to do things. If it can be

combined to do things with a conscious determination and at the same time avoiding the most

obvious pitfalls it is not a bad starting point.

Going international requires the same managerial and organisational skills as running a

domestic business but in addition to these the complexity is multiplied with factors of

different regional and organisational culture, different business environments, practical and

logistical issues of geographical distances and time zones. Control and alignment is more

difficult and 'business as usual' is not an option.

For each new region with a subsidiary a new set of decisions and challenges arises and a

number of conscious decisions have to be made.

2. Culture on three levels - region, organisation, individual

Culture eats strategy for breakfast!

Business school analysis, business strategies including strategic human resource plans doesn't

stand a chance if they don't take culture into consideration.

Culture in a company can be analysed, described and developed on three levels:

- National and regional level

- Organisational level

- Individual level

The national and regional level can normally not be changed and developed by a company,

but will represent an environmental factor to be part of the planning process. Especially

understanding and taking advantage of the typical business culture in a region can be a

strategic winning point.

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The organisational level represents the company's existing and desired overall culture and the

subcultures in departments and branches. These kinds of cultures can be analysed and

described very precisely and development plans for changing and improving the organisations

culture and subcultures can be drafted and implemented quite easily.

The individual culture represents the type of persons in the company. Values and preferences

in work style, leadership style, communication and decision making varies from company to

company, but most organisations tend to build up a special population as their kind of people.

A number of tools and methods can describe and suggest development plans for teams and

persons even to the extent of suggesting a recruiting policy.

It is highly recommended that all companies analysis the three levels of culture and

consciously choses a development plan for the organisation. Including how to align actions

between subsidiaries and how to secure the value chain and project lines between the people

of the organisation on different levels and sites around the world.

The traditional approach in mergers, acquisitions and international expansion of the company

is naturally to secure IT-systems, legal matters and the value chain. A parallel investment in

intercultural alignment can secure a much higher return on investment.

3. Coordinating and managing - time zones, virtual teams, out posting, lines of command

Most organisational theories and organogram are still based on a world 200 years ago.

When organisational theory was invented most experience came from military and religious

organisations with clear lines of command. Matrix and project organisations have been

applied since to compensate for a growing complexity and new needs, but basically a lot of

thinking around organisations is rooted in physical presence of boss and employees and easy

access.

Instead of applying features to the old organisational diagrams and thinking a new worldwide

organisation deserves a new planning process. Starting from the intercultural knowledge

about how people would like to cooperate and what to achieve, and then adding the

possibilities of technology before deciding how to go about it practically. An example is the

everyday question about creating a team feeling in the globally divided team. The manager is

in one country and the members of the team in one or more other countries. The answer might

very well be that you don't need to create a team feeling. It's traditional thinking. In best of

cases you will get a very frail result and a lot of travelling to obtain it, so it could be more

efficient to look at structures of cooperation, traditions and means of communication and

management structures.

We recommend an efficiency check on the global management structure and human resource

system including lines of command, team structure, time zones, email policies etc. Traditional

LEAN analysis and value chain planning tends to focus on the product and the operations and

could benefit from putting extra focus on the rest of the setup of daily contacts, second line

communications etc.

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4. Practically analysing the regional and national differences - focus on Mexico

If you want to analyse the differences in the work place culture in the Nordic area and in

Mexico and want to get some inspiration for further improvement in how you adapt to these

differences useful ideas can be obtained from these models and schemes.

We know as a fact that updated surveys and on-going individual test-results gives highly

different scores for professionals in the Nordic countries and in Mexico. The results are not

from the population in general but only from managers and professionals in business and

organisations. Thus the data are representing exactly the same group of people as the Human

House survey has approached. Feel free to contact us for more information on the models.

This illustration shows that on all five

factors used to measure cultural

differences at the work place there

are significant differences between

the two regions.

To simplify the illustration only the

Danish flag has been used, but the

Nordic countries are all placed very

close to each other on the scales -

only with a few minor variations.

Source:

Human House and ITAP International, Culture in

the Workplace Questionnaire 2, in cooperation with

Geert Hofstede Company.

Building an organisation gives under these circumstances a string of challenges:

The red and green figures relate to

the intercultural differences.

Red number '1' represents the typical

workplace cultural approach

preferred by the Nordics.

Green number '2' represents the

typical workplace cultural approach

preferred by the Mexicans.

So what is chosen?

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Extract from typical differences in values and norms on workplace cultures in

respectively Mexican and Nordic type of countries.

Mexico

- group style,

- hierarchy

- needs certainty

- masculine work style

- short term time orientation

Nordic Countries

- individual style

- democratic

- low need for certainty

- feminine work style

- middle term time orientation

Technology, structure, HR

Distinction between experts and laymen,

between important and unimportant

functions and right and wrong way.

Standardize and formalize procedures to

avoid risk.

Focus on delivering on time in expected

quality.

Adapt existing methods to temporary needs.

Coordination and decision-making at the top.

Employees mostly just do as they are told.

Explicit and transparent division of labour.

Results visible to all and foster competition.

Often isolated departments that might

operate independently and even in separate

directions.

Differences in compensation and rewards

and differential treatment in general.

Clear-cut and predictable career paths.

HR systems with performance evaluations

systems, up-or-out promotion, elaborate

incentive schemes, high employee turnover

rate.

Technology, structure, HR

Varied methods of production and many

functions.

Dislike standardization.

Process focus.

Developing new methods

Decentred decision-making, individual

autonomy, responsibility and recognition and

tend to require formalised coordination

Favour collaboration, teamwork and long-

lasting relations.

Prefer individualized career paths and

development plans and individual

recognition and bonuses.

Invest much in training and development,

have social and benefits maternity and

paternity leave, sabbaticals, health insurance,

fitness, etc.

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5. Analysing the organisational culture

Business and company culture must fit

Adding the company culture can make inter cultural

alignment more or less easy to obtain.

Competing Values Framework by Cameron and

Quinn is an intuitive and most illustrative way to

describe the culture of an organisation. Focusing on

the fact that it's impossible to be everything at the

same time the model narrows the basic questions of

organisational values down to two questions -

Flexible or Stabile, External or Internal focus.

All organisations want to achieve

and full fill their mission but

different history, different

products, different markets and

different people ends up creating

different beliefs and values and

organisational cultures. The

model and methods behind are far

more complex and sophisticated

than indicated in the figures on

this page, but for a short cut to

understanding the picture can an

analysis of the culture end up and

clarify in which mixture an

organisation is blended of the four

stereotypes - Clan, Adhocracy, Market, Hierarchy. Theoretically it can be 100% of one of

them or 25% of each. Practically it will be a more mixed picture but often with a clear

tendency.

Two examples below are illustrating an organisation with a clear external focus - equally

divided between structure and creativity - and an organisation clearly dominated by hierarchy.

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It goes without saying that if the two examples are branches within the same company and

they have to cooperate close then we can foresee some challenges and what is better; we

probably also can make a viable roadmap for the cooperation.

National work place culture varies very much, and organisational culture varies also inside the

company from department to department and on top of this individual culture varies from

person to person. Decisions on norms, procedures, marketing approach, production lines and

leadership styles have to take all these factors into account.

Competing Values Framework is one of the most operational and practical methods of

analysing and developing the company culture. It can be used in small and big companies and

is very useful when it comes to explaining and communicating decision and managerial

roadmaps. Feel free to contact us for examples and ideas.

6. The trip goes to Mexico - some additional considerations from the survey

In connection with the headlines from the main survey five themes of interesting discussions

stand out from analysis, data, interviews and meetings. Individual managers - especially from

headquarters - claim that these questions have been taken into account and that a conscious

decision has been made. However either it is hasn't been communicated or there still remain

some disagreement.

Is equalized necessarily good or is it just what happened?

The workplace culture seemed to be equalized in the Mexican subsidiaries and in most

situation equalized to be more Nordic than Mexican. Has this been done on purpose and is it

efficient. Some results from the survey indicate that it may not be the case.

Does equalization help you to work better?

Could it challenge your efficiency?

Does equalization create a barrier for you to take advantage of diversity and a

multicultural environment?

Expectations around delegation, supervision and following up are unclear!

Basically some communication is needed. From each side of the Atlantic stereotypes exist on

the issue of responsibility.

Is delegation a way of not taking responsibility, seen from Mexico? Is need for

support and supervision a way of not taking responsibility, seen from the Nordic

region?

Some would like to have, some don’t like to give.

Some expects clear reactions including 'no', and some expects more subtle messages to

be understood.

Liking each other and being efficient across the Atlantic

Having positive relationships with co-workers and management across the cultural borders is

mentioned several times as desirable and also as the factual situation. As per the written

statements Nordics and Mexicans seems to harmonize well on the interpersonal level, but

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consultancy experience shows that it is not necessarily related to higher efficiency and better

performance.

Friendship is sometimes confused with efficiency, but friendship is not the same as not

having intercultural challenges.

Are the cooperating cultures able to challenge each other in a way understandable and

viable for both sides or do one or both sides protect the relationship?

Is the teamwork style both nice and as productive as possible?

Do people like each other because they are polite or because they truly understand

each other and can manage conflicts?

To Tropicalize or not, that’s the question!

It's evident that a company must be aware of the cultural context in which it operates, in order

to be able to implement HQ rules and procedures, while at the same time maintaining high

quality and keep up to international standards. It appears that the decision on strategy in this

matter creates some frustrations and disagreement on strategy.

Do Mexicans really understand why HQ wants to standardize procedures?

Have the procedures been analysed, and are these procedures making the company

more efficient?

Has it been told very clearly and loud to the HQ if there are qualified suggestions and

concerns from the Mexican side?

Has HQ asked?

Even though Mexican managers have the ability and international experience to bridge

across the intercultural communication barrier they face difficulties in 'translating'

policies and procedures to employees and customers.

Organisation

During interviews some Mexicans questions the wisdom in choosing local managers to run

the organisation in Mexico. Not all but many Nordic companies choose to have a local

manager. Especially if Nordic companies like to delegate and don't want to be burdened with

too much communication and follow up some of the Mexicans find it advisable to outpost

more Nordics.

Typical Nordic staff policies concerning i.e. stress, work/life balance and job development are

also questioned as being not necessarily wise in Mexico or at least not wise in the way they

have been implemented. Leaving as an example these questions:

Local manager or out-posted?

Same company policies including HR in Mexico and the Nordic area?

How does the company provide the right level of structure vs. flexibility for both

Mexican and Nordic employees?

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Contacts

Jan Hyttel

+45 4074 1539

[email protected]

Human House A/S

Rosenkrantzgade 19B

DK – 8000 Aarhus C

www.humanhouse.com

Hugette Cervantes

+52 155 1384 1288

[email protected]

Human House A/S

Río Niágara 38 – 401

Col. Cuauhtémoc

06500 México D.F.

(52 55) 5207 2490

Cecilia Hubard

+45 2076 6166

[email protected]

Human House A/S

Havnegade 39

DK-1058 Copenhagen K