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New Business Model:

Harnessing the Power of Diversity

Managing and Harnessing the Power of Cross-Cultural Differences

Working on Cross-Cultural Communication, Business Development and Project Management Challenges

By Anastasia Bibikova & Vadim Kotelnikov, Founder of the Ten3 Business e-Coach

"Tact is the ability to describe others as they see themselves" - Abraham Lincoln

 

Working Together:

Six Fundamental Patterns of Cultural Difference1

  1. Different communication styles

  2. Different attitudes towards conflict

  3. Different approaches to completing tasks

  4. Different decision-making styles

  5. Different attitudes towards disclosure

  6. Different approaches to knowing

Cross-Cultural Communication: Hopes and Fears2

Hopes:

  • the possibility of dialogue

  • learning something new

  • developing friendships

  • understanding different points of view

Fears:

  • being judged

  • miscommunication

  • patronizing or hurting others intentionally

Leveraging Diversity: a Managerial Approach

Unleashing the Power of Integrated Opposites

  • developing innovative services and products for diverse customer groups by sharing of diverse experiences and cultural insights of workers

  • creative problem solving by looking at "the same landscape with different eyes" and cross-pollination of ideas

  • achieving synergy by leveraging the power of critical opposites

Guidelines for Multicultural Collaboration1

  • Learn from generalizations about other cultures, but don't use those generalizations to stereotype. Use them rather to understand better and appreciate other multifaceted human beings.

  • Practice, practice, practice.

  • Don't assume that yours is the only right way to communicate. Keep questioning your assumptions about the "right way" to communicate. Communicate trust and build rapport by talking in your client's preferred mode.

  • Search for ways to make the communication work, rather than searching for who should receive the blame for the breakdown

  • Listen actively and empathetically. Try to put yourself in the other person's shoes.

  • Honor others' opinions about what is going on.

  • Suspend judgment, and try to look at the situation as an outsider.

  • Honest acknowledgment of the mistreatment that has taken place on the basis of cultural difference is vital for effective communication. Use this as an opportunity to develop trust.

  • Awareness of current power imbalances is necessary for understanding each other and working together.

  • Remember that cultural norms may not apply to the behavior of any particular individual. We are all more complicated than any cultural norm could suggest.

Related Chapters of the Business e-Coach

Eastern vs. Western Philosophy

Secrets of Happiness

Yin and Yang

Yoga 10-step Approach to Conflict Resolution

Harnessing the Power of Diversity

Culture Dimension Scores of 10 Selected Countries

Competitive Advantage: US versus Japan

Cross-Cultural Differences: China and United States

Russian Entrepreneurs and Workers: Strengths and Weaknesses

Knowing Yourself and Others

Mental Maps

Meyer-Briggs Type Indicator (MBTI)

Building Successful Relationships

Coaching: Dealing with Cultural Differences

Building Trust

Building Trust Between Business Partners

Establishing Rapport

Connecting with People

Conflict Resolution

Ten-Step Yoga Approach to Conflict Resolution

Enneargam

Enneagram Analysis: Styles of Selected World Cultures

Jokes

Cross-Cultural Differences

What is Culture?

Culture in general is concerned with beliefs and values on the basis of which people interpret experiences and behave, individually and in groups. Broadly and simply put, "culture" refers to a group or community with which you share common experiences that shape the way you understand the world.

The same person, thus, can belong to several different cultures depending on his or her birthplace; nationality; ethnicity; family status; gender; age; language; education; physical condition; sexual orientation; religion; profession; place of work and its corporate culture.

Culture is the "lens" through which you view the world. It is central to what you see, how you make sense of what you see, and how you express yourself.

Four Cultural Dimensions

Cultures - both national and organizational - differ along many dimensions. Four of the most important are:

  1. Directness (get to the point versus imply the messages)

  2. Hierarchy (follow orders versus engage in debate)

  3. Consensus (dissent is accepted versus unanimity is needed)

  4. Individualism (individual winners versus team effectiveness)7

Cross-Cultural Communication Challenges

Culture is often at the root of communication challenges. Exploring historical experiences and the ways in which various cultural groups have related to each other is key to opening channels for cross-cultural communication. Becoming more aware of cultural differences, as well as exploring cultural similarities, can help you communicate with others more effectively. Next time you find yourself in a confusing situation, ask yourself how culture may be shaping your own reactions, and try to see the world from the other's point of view.

Culture Shock

Failure to identify cultural issues and take action can lead to a culture shock. In order of priority, the most often found symptoms of culture shock are3:

  • feeling isolated

  • anxiety and worry

  • reduction in job performance

  • high nervous energy

  • helplessness.

Not coping with culture shock symptoms when they appear can lead to a very negative situation.

Respecting Differences and Working Together

Anthropologists discovered that, when faced by interaction that we do not understand, people tend to interpret the others involved as "abnormal", "weird" or "wrong"5. Awareness of cultural differences and recognizing where cultural differences are at work is the first step toward understanding each other and establishing a positive working environment. Use these differences to challenge your own assumptions about the "right" way of doing things and as a chance to learn new ways to solve problems.

Building Trust Across Cultural Boundaries

Research indicates4 that there is a strong correlation between components of trust (such as communication effectiveness, conflict management, and rapport) and productivity. Cultural differences play a key role in the creation of trust, since trust is built in different ways, and means different things in different cultures.

For instance, in the U.S., trust is "demonstrated performance over time". Here you can gain the trust of your colleagues by "coming through" and delivering on time on your commitments. In many other parts of the world, including many Arab, Asian and Latin American countries, building relationships is a pre-requisite for professional interactions. Building trust in these countries often involves lengthy discussions on non-professional topics and shared meals in restaurants. Work-related discussions start only once your counterpart has become comfortable with you as a person.

Cultural differences in multicultural teams can create misunderstandings between team members before they have had a chance to establish any credibility with each other. Thus, building trust is a critical step in creation and development of such teams. As a manager of a multicultural team, you need to recognize that building trust between different people is a complex process, since each culture has its own way of building trust and its own interpretation of what trust is.

Harnessing the Power of Diversity

Diversity is a specialized term describing a workplace that includes people from various backgrounds and cultures, and/or diverse businesses.

You can find a strategic competitive advantage in an organizational and cultural context by seeking to leverage, rather than diminish, opposite forces. "An important but widely overlooked principle of business success is that integrating opposites, as opposed to identifying them as inconsistencies and driving them out, unleashes power. This is true on both a personal level (the balanced manager is more effective than his or her peer at one end of the control spectrum) and on organizational level as well...More

Case in Point: DuPont

A US-based multicultural team at DuPont gained around US$45 million in new business by changing the way decorating materials are developed and marketed. The changes included new colors that team members new, from their experience within other cultures, would appeal more to their overseas customers.6

Case in Point: General Electric (GE)

At General Electric (GE) the sum is greater than its parts as both business and people diversity is utilized in a most effective way. A major American enterprise with a diverse group of huge businesses, GE is steeped in a learning culture and it is this fact that makes GE a unique company.

As Jack Welch puts it: "What sets GE apart is a culture that uses diversity as a limitless source of learning opportunities, a storehouse of ideas whose breadth and richness is unmatched in world business. At the heart of this culture is an understanding that an organization's ability to learn, and translate that learning into action rapidly, is the ultimate competitive business advantage." As Welch noted in his 1996 Letter to Share Owners, "The constant sharing of business experiences and cultural insights, from around the world, is creating a Company whose brains, as well as businesses, are truly global."

The GE Leadership Effectiveness Survey (LES) provides a framework for evaluation of the corporate leaders that includes, inter alia, the following parameters: "Fully utilizes diversity of team members (cultural, race, gender) to achieve business success" and "Demonstrates global awareness / sensitivity and is comfortable building diverse / global teams."

Case in Point: Female Color

I, one of the authors of this article, had a business meeting with a Japanese businesswomen in our office. During the break, she went to the washroom. I was surprised to see her opening the door into the "Man's room" which had a big male-silhouette sign on it. I warned her, "Excuse me, it's a man's room! Don't you see that sign?" "Yes, I see it," she answered, "but it's red. In our country, a red-colored sign means it's a lady's room. For men, it should be black or blue." What a cultural difference!  I pay attention to the sign only, not to its color, and she pays attentions to completely different things.  How many such communication gaps we experienced - without noticing it! - during our previous discussion? Yes, if I wish to communicate more effectively, I should learn more about thinking habits and perceptions of our prospects.

 

Bibliography:

  1. "Working on Common Cross-Cultural Communication Challenges", Marcelle E.DuPraw and Marya Axner, 1997

  2. "Waging Peace in Our Schools", Linda Lantieri and Janet Patti, 1996

  3. "Breaking Through Culture Shock", Elisabeth Marx, 2001

  4. "Building Trust Across Cultural Boundaries", Ira Asherman, John W. Bing, Ed.D., and Lionel Laroche, 2003

  5. "Conflict Resolution in Intercultural Settings: Problems and Prospects", Kevin Avruch and Peter Black, 1993

  6. "Developing a Culture for Diversity", Chris Speechley and Ruth Wheatley, 2001

  7. "Cultures and Organizations: Software of the Mind", Geert Hofstede, 1997

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