Riding the Waves of Culture

FONS TROMPENAARSLisbon, 28 October 2014

Riding the Waves of CultureTaking advantage of challenging circumstances

Your clients and partners

Approaching Dilemmas: Navigating Strategic Tensions

To Create Wealth is

to combine Values that are not easily joined…..

Therefore scarce...

Therefore profitable….

Impa

ct

Time

RecognizeIncrease Awareness

RecognizeIncrease Awareness

RespectAppreciate

Cultural Differences

RespectAppreciate


ReconcileResolve


ReconcileResolve


Realize and RootImplement

Reconciling Actions

Realize and RootImplement

Reconciling Actions

This approach leads to concrete and measurable actions…

“Innovative leaders have the propensity and

competence to help organizations and its teams

reconcile dilemmas for sustainable innovation”

Core Proposition

Some hard evidence

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 the propensity to reconcile dilemmas correlates with bottom line business performance

Explicit Culture

A model of culture

Implicit Culture

01/ The Car Accident

What happens to your friend?

01/ What right does your friend have?

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.

01/ Dilemma:

The top 2 of your corporate values are:

1. Integrity

2. We respect the cultures of others

INTEGRITY

Please discuss in the context of these values what your answer would be…

01

02

03

04

05

06

07

Universalism versus Particularism

Individualism versus Communitarianism

Neutral versus Affective

Specific versus Diffuse

Achievement versus Ascription

Sequential versus Synchronic

Internal versus External Control

• Consistency• Systems, standards &

rules • Uniform procedures• Demanding of clarity• Letter of the law

• Flexibility• Pragmatic • Make exceptions• “It depends”• At ease with ambiguity• Spirit of the law

01/ Universalism vs Particularism

3237

4447

5464

6869

7383

87909191929393

97

0 20 40 60 80 100

VenezuelaKorea

RussiaChinaIndia

MexicoJapan

SingaporeFrance

Czech RepGermany

NetherlandsAustralia

United KingdomSweden

USACanada

Switzerland

Friend has no/some right and would not help

01/ Universalism

Global Standards (Critical Mass)

Cultural Diversity (Differing solutions)

Globalism and Localism

01/ Dilemma

Glo

bal c

entra

lized

Decentralized Local

Global Corporation

Multi-local Corporation

Globalization vs. Localism

International Corporation

Transcultural Corporation

Impa

ct

Time

The Creative Individual


The Inventive TeamThe Inventive Team

The Innovative Organization


01/ This approach assumes three connected stages…

The CreativeIndividual

The CreativeIndividual

STAGE 1

Impa

ct

Time


01/ Flaw: based only on linear scale models

IntuitivePerceivingThinkingExtrovertTortoise mindLateralRisk-takingHuntingIndividualisticRight brainEtc.

SensingJudgingFeeling

IntrovertHare brain

FocusedSecuring

GatheringConsensus seeking

Left brainEtc.

Creative people are more… Creative people are less…

Kirton’s KAI linear model

But scoring on one implies less of the other

Creativity

Adaptation

Innovation

Innovation = the reconciliation between creativity and adaptation

I am efficient, thorough, adaptable, methodical,

organized, precise, reliable, and dependable

I am ingenious, original, independent, unconventional and unpredictable

Creativity

Adaptation

Innovation





I am continuously checking in an organized and

methodical manner whether my original

ideas do work in practice.

Creativity

Adaptation

Innovation





I am methodical and organized first to set the

basis to launch my unconventional ideas.

Creativity

Adaptation

Innovation





STAGE 2

Impa

ct

Time


Dilemma team roles

01/ Integrating Team Roles of Belbin

01/ Example Belbin Team roles of participants

0 1 2 3 4 5 6 7

Shaper

Coordinator

Implementer

Resource Investigator

Team Worker

Monitor Evaluator

Plant

Specialist

Completer Finisher

Most like Least like

The Particular Idea versus the Universal Evaluation

The Plant The Evaluator

01/ Belbin team role dilemma

01/ Belbin Team roles

Particular Creative Ideas

Blue Sky

Realize ideas through critical

oxygen

Strangled at birth…





The Innovative OrganizationIm

pact

Time


01/ Corporate Culture

ORGANIZED CHAOSMBPLEARNING

NETWORKMBSPROMOTION/POWER

STRATEGYMBOPAY FOR PERFORMANCE

STRUCTUREMBJDEXPERTISE

Incubator Guided missile

Family Eiffel tower

Person oriented Task oriented

Hie

rarc

hica

lEg

alita

rian

Four Corporate CulturesEgalitarian

Hierarchical

Person Task

The infinity loop for innovationEgalitarian

Hierarchical

Person Task

From Invention to Intention01

02

03

04

From Invention to IntentionEgalitarian

Hierarchical

Person Task

WEAKNESS:ANARCHYCHAOS

INITIAL STRENGTHS:CREATIVEFLEXIBLE

INITIAL STRENGTHS:LOYALTY/COMMITMENTSTRONG LEADERSHIP

LEADERSHIP CRISIS

01/ Stage 1 Dilemmas

1. Leading participating employees versus respect for authority

2. Team spirit versus individual creativity

3. Effectiveness of teams versus creation of cultural knowledge about these teams








01

02

03

04

05

06

07

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.’

02/ Individualism versus Communitarianism

3032

3739

414142

445253

606161

636465

6769

7189

0 20 40 60 80 100

EgyptMexico

IndiaJapan

FranceChina

SingaporeIndonesia

ItalyGermany

RussiaSweden

UKAustralia

FinlandNetherlands

Czech RepublicUSA

CanadaIsrael

Percentage opting for individual freedom

02/ Individualism

02/ Dilemma Reconciliation

Case Study:Individual Performance versus Team Spirit

The Individual and the Team

02/ The Individual and the Team

Stimulate Team Co-operation

Reward Individual Performance

Team Motivation

Indi

vidu

al M

otiv

atio

n02/ Dilemma Reconciliation

(1,10) Me, Myself and withholding Information

Team Motivation

Indi

vidu

al M

otiv

atio


Team Mediocrity (10,1)

Team Motivation

Indi

vidu

al M

otiv

atio


(5,5)

Go for the Small team

Reward Teams for Individual Creativity (10,10)

AND

Reward Individuals

for Team Work

02/ Dilemma Reconciliation

Team Motivation

Indi

vidu

al M

otiv

atio

n

1. Mass-Customization

2. Co- Opetition

3. Moment of Truth

4. It is Cool to be Emotional

5. Servant Leader

6. Just In Time Synchronizing Sequences

7. Pushing through the Pull

02/ Main Challenges

From Intention to Invasion

01

02

03

04

Task oriented

INITIAL STRENGTHS:LOYALTY/COMMITMENTSTRONG LEADERSHIP

WEAKNESS:COUNTRYCLUBCENTRALIZATION

INITIAL STRENGTHS:STRATEGIC

TASK ORIENTATEDCUSTOMER FOCUSED

CRISIS OF AUTONOMY

Egalitarian

Hierarchical

Person Task

From Intention to Invasion

Stage 2 Dilemmas

1. Lord or servant ?

2. How do we centralise lessons reaching us from decentralised locations?

3. Concern with process versus concern with people

01

02

03

04

05

06

07








05/ Achievement versus Ascription

STATUS ?

What You Do Who You Are

• Family

• Age

• Gender

• Education


Aspects of ascribed status…

‘The most important thing in life is to act as really

suits you, even if you don’t get things done’


%

Percentage not agreeing with acting as really suits you


1524252627

2931

34343535

38393940

4243

5056

5759

0 20 40 60 80 100

EgyptCzech Republic

South KoreaArgentina

JapanRussia

SpainThe Netherlands

BelgiumFrance

SwitzerlandChinaIndiaItaly

BrazilGermany

IsraelUK

CanadaNorway

USA


Attributed status by seniority or role

Perf

orm

ance

Sta

tus Lost democratic leadership

(1,10)



(10,1)Follow the Leader

Perf

orm

ance

Sta

tus



The Servant Leader

(10,10)

Perf

orm

ance

Sta

tus

Servant or Leader ?


2. Co- Opetition

3. Moment of Truth


5. Servant Leader



02/ Main Challenges

From Invasion to Implementation

01

02

03

04

Egalitarian

Hierarchical

Person Task

INITIAL STRENGTHS:STRATEGICCUSTOMER FOCUSED

WEAKNESS:SWEATSHOPSHORT TERMISM

INITIAL STRENGTHS:EFFICIENTSTRUCTURED

CRISIS OF CONTROL

From Invasion to Implementation

01

02

03

04

05

06

07








04/ Specific versus Diffuse

PUBLIC

PRIVATE



Specific Relationship

PUBLIC PRIVATE


No Relationship


PRIVATEPRIVATE

Diffuse Relationship



Danger Zone

PRIVATE

PUBLIC

04/ Specificity

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.

A boss asking to paint his house

324647

5258

656667

697071

7882

878889

9191

0 20 40 60 80 100

ChinaNigeriaKuwait

VenezuelaSingapore

KoreaBelgiumGreece

ThailandMexicoJapan

Czech RepublicUSA

CanadaUK

DenmarkNetherlands

Sweden

%

Would not paint the house

04/ Specificity

Balanced Score Card Dilemma…

From the Balanced to the Integrated Score Card

Specific Financial Performance

Diffuse Development of People


Spec

ific

finan

cial

per

form

ance

Interests in future innovating and learning

Cost cutting yourself

(1,10)

Subsidised seminar

(10,1)

Integrated growth:

Train for Cost Cutting

(10,10)


From Implementation to Innovation

01

02

03

04

Egalitarian

Hierarchical

Person Task

INITIAL STRENGTHS:LEAN PROCESSESSTRUCTURED

WEAKNESS:BUREAUCRACYINFLEXIBLE

INITIAL STRENGTHS:CREATIVECLIENT IS KING

CRISIS OF RED TAPE

From Implementation to Innovation








01

02

03

04

05

06

07

07/ Internal versus External Control

Internal ControlNature as a mechanismDominance over nature

External ControlNature as an organismSubjugation to nature


A. What happens to me is my own doing.

B. Sometimes I feel that I do not have enough controlover the direction my life is taking.

What happens to me is my own doing


405152

616263

6469

737475757676777879

818586

89

0 20 40 60 80 100

NepalChina

RussiaSouth Korea

JapanCzech Republic

PortugalIndia

SwedenBelgium

ItalyGermany

The NetherlandsBrazil

FranceNorway

UKSpain

USACanada

New Zealand

Balanced Score Card Dilemma…


Inner Directed Improvements in Business Processes

Outer directed increase in customer satisfaction


Inne

r dire

cted

impr

ovem

ents

Outer directed increase in customer satisfaction

Lean but mean

(1,10)

Customer’s creature

(10,1)

Integrated growth:

Pushing through the Pull(10,10)


07/ Main Challenges


2. Co-Opetition


4. Moments of Truth

5. Servant Leader



Egalitarian

Hierarchical

Person Task

Exnovation!

Task oriented

Stage 5 Dilemmas

1. Internal versus external innovations

2. Investing in R&D efforts versus co-operating with rival companies

3. Hi-tech versus ‘hi-touch’ in virtual teams

4. Systemic versus modular innovation

Hi-tech versus Hi-touch

Stage 5 Dilemmas

1. Internal versus external innovations

2. Investing in R&D efforts versus co-operating with rival companies

3. Hi-tech versus ‘hi-touch’ in virtual teams

4. Systemic versus modular innovation

Unco-ordinated supplyC

ontr

ollin

g sy

stem

ic in

nova

tion

Free flowing modular innovations

Innovation jealously guarded

Knowledge Broking

Knowledge Management

INCLUSION

DIVERSITY

LEADERSHIP

INNOVATION

=

QUESTIONS?

TO DOWNLOAD THIS PRESENTATIONPLEASE GO TO www.thtconsulting.comPASSWORD EYOct14

THTConsulting

Thank you

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Riding the Waves of Culture