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Fons Trompenaars Understanding Cultural Diversity in Business Riding the Waves of Culture Valencia 10 th April 2008.

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Presentation on theme: "Fons Trompenaars Understanding Cultural Diversity in Business Riding the Waves of Culture Valencia 10 th April 2008."— Presentation transcript:

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2 Fons Trompenaars Understanding Cultural Diversity in Business Riding the Waves of Culture Valencia 10 th April 2008

3 The old MBA paradigm

4 3 Trompenaars Hampden-Turner We know this right? Lets now do it with one line.

5 4 Trompenaars Hampden-Turner The new MBA paradigm: with ONE line

6 5 Trompenaars Hampden-Turner The new MBA paradigm

7 6 Trompenaars Hampden-Turner The new MBA paradigm

8 7 Trompenaars Hampden-Turner But you have to fold the paper

9 8 Trompenaars Hampden-Turner Successful leaders have the propensity and competence to help organizations and its teams reconcile dilemmas for better sustainable business performance Core Proposition

10 This approach leads to concrete and measurable actions… Impact Time Recognize Increase Awareness Recognize Increase Awareness Respect Appreciate Cultural Differences Respect Appreciate Cultural Differences Reconcile Resolve Cultural Differences Reconcile Resolve Cultural Differences Realize and Root Implement Reconciling Actions Realize and Root Implement Reconciling Actions

11 10 Trompenaars Hampden-Turner To Create Wealth is to Combine Values that are not easily joined… Therefore scarce... Therefore profitable…. Approaching Dilemmas: Navigating Strategic Tensions

12 11 Trompenaars Hampden-Turner Some hard evidence…

13 12 Trompenaars Hampden-Turner Source: 21 Leaders for the 21 st Century p429 Correlation (Spearmans coefficient of rank correlation) Correlation between reconciliation and 360 o 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 propensity to reconcile dilemmas correlates with bottom line business performance

14 13 Trompenaars Hampden-Turner What is Culture? Please define culture

15 14 Trompenaars Hampden-Turner A model of Culture Implicit Culture Explicit Culture

16 15 Trompenaars Hampden-Turner Is a dynamic process of solving human problems/dilemmas in the areas of… - Human Relationships - Time - Nature About Culture

17 16 Trompenaars Hampden-Turner 01/ The Car Accident What happens to your friend?

18 17 Trompenaars Hampden-Turner 01/ What Right has Your Friend? 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.

19 18 Trompenaars Hampden-Turner 01/ Dilemma: The top 2 of your corporate values are: 1.Integrity 2.We respect the cultures of others Please discuss in the context of these values what your answer would be… INTEGRITY

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21 20 Trompenaars Hampden-Turner 01/ Universalism vs Particularism Consistency Systems, standards & rules Uniform procedures Demand clarity Flexibility Pragmatic Make exceptions It depends At ease with ambiguity

22 21 Trompenaars Hampden-Turner 01/ Universalism Friend has no/some right and would not help

23 22 Trompenaars Hampden-Turner Universalism versus Particularism average score

24 23 Trompenaars Hampden-Turner 01/ Dilemma: Global Standards (Critical Mass) Cultural Diversity (Differing solutions) Globalism and Localism

25 24 Trompenaars Hampden-Turner 01/ Globalize and Localism X (10,10) Global Standards (Critical Mass) Be like US Transnational Centers of Excellence Cultural Diversity (Differing solutions) Small Nations Multi-Localism

26 25 Trompenaars Hampden-Turner 01/ Main Challenges

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28 27 Trompenaars Hampden-Turner 02/ Individualism versus Communitarianism 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 ones life would improve as a result.

29 28 Trompenaars Hampden-Turner 02/ Individualism Percentage opting for Individual Freedom

30 29 Trompenaars Hampden-Turner Reward Individual Performance Stimulate Team Co-operation 02/ Dilemma Reconciliation The Individual and the Team

31 Individual Motivation Team Motivation (1,10) Me, Myself and Withholding Information 02/ Dilemma Reconciliation The Individual and the Team

32 Team Motivation Team Mediocrity 02/ Dilemma Reconciliation The Individual and the Team Individual Motivation

33 (5,5) Go for the Small team Team Motivation 02/ Dilemma Reconciliation The Individual and the Team Individual Motivation

34 Reward Teams for Individual Creativity AND Reward Individuals for Team Work Team Motivation (10,10) 02/ Dilemma Reconciliation The Individual and the Team Individual Motivation

35 34 Trompenaars Hampden-Turner 02/ Main Challenges

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37 36 Trompenaars Hampden-Turner 03/ Neutral versus Affective In my society, it is considered unprofessional to express emotions overtly. Please select your position on the statement above: a)Strongly agree b)Agree c)Be undecided d)Disagree e)Strongly disagree

38 37 Trompenaars Hampden-Turner 03/ Neutral versus Affective Percentage not expressing emotions overtly

39 38 Trompenaars Hampden-Turner 03/ Neutral versus Affective How to select the Right Person? Myers Briggs Type Indicator (MBTI) DILEMMA

40 39 Trompenaars Hampden-Turner 03/ Neutral versus Affective Emotions in Control

41 40 Trompenaars Hampden-Turner 03/ Neutral versus Affective Emotions in Control

42 41 Trompenaars Hampden-Turner 03/ Neutral versus Affective Head in Control Heart in Passion Analysis, Paralysis (1,10) Emotions in Control

43 42 Trompenaars Hampden-Turner 03/ Neutral (10,1) Loving Neurotic Head in Control Heart in Passion Emotions in Control

44 43 Trompenaars Hampden-Turner 03/ Neutral Continually checking what your heart communicates (10,10) Head in Control Heart in Passion Emotions in Control

45 44 Trompenaars Hampden-Turner 03/ Main Challenges

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47 46 Trompenaars Hampden-Turner 04/ Specific versus Diffuse PUBLIC PRIVATE

48 47 Trompenaars Hampden-Turner 04/ Specific versus Diffuse PUBLIC Specific Relationship

49 48 Trompenaars Hampden-Turner 04/ Specific versus Diffuse PUBLIC PRIVATE

50 49 Trompenaars Hampden-Turner 04/ Specific versus Diffuse No Relationship

51 50 Trompenaars Hampden-Turner 04/ Specific versus Diffuse Diffuse Relationship PRIVATE

52 51 Trompenaars Hampden-Turner 04/ Encounter Specific and Diffuse PUBLIC PRIVATE Danger Zone PRIVATE

53 52 Trompenaars Hampden-Turner The colleague argues: You dont have to paint the house if you dont 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 dont feel like it, I will paint the house anyway. He is my boss and you cannot ignore it outside your work either. 04/ Specificity A boss asking to paint his house

54 53 Trompenaars Hampden-Turner 04/ Specificity Would not paint the house

55 54 Trompenaars Hampden-Turner Specific Financial Performance Diffuse Development of People From the Balanced to the Integrated Score Card

56 55 Trompenaars Hampden-Turner Specific financial performance Integrated growth: Train for Cost Cutting Cost cutting yourself Interests in future innovating and learning Subsidised seminar From the Balanced to the Integrated Score Card

57 56 Trompenaars Hampden-Turner 04/ Main Challenges

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59 58 Trompenaars Hampden-Turner 05/ Achievement versus Ascription STATUS ? What You Do Who You Are

60 59 Trompenaars Hampden-Turner 05/ Achievement versus Ascription Family Age Gender Education

61 60 Trompenaars Hampden-Turner 05/ Achievement versus Ascription The most important thing in life is to act as really suits you, even if you dont get things done

62 61 Trompenaars Hampden-Turner 05/ Achievement versus Ascription Percentage not agreeing with acting as really suits you

63 62 Trompenaars Hampden-Turner 05/ Achievement versus Ascription Attributed status by seniority or role Performance Status Lost democratic leadership Follow the Leader The Servant Leader

64 63 Trompenaars Hampden-Turner

65 64 Trompenaars Hampden-Turner 05/ Main Challenges

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67 66 Trompenaars Hampden-Turner 06/ Time Orientation Think of the past, present and future as being in the shape of circles. Please draw three circles representing past, present and future. Arrange these circles in any way you want that best shows how you feel about the relationship of the past, present and the future. You may use different size circles.

68 67 Trompenaars Hampden-Turner 06/ Time Orientation USA FRA UK GER SPA JPN Past, Present and Future

69 68 Trompenaars Hampden-Turner 06/ Time Orientation Sequential Synchronic Sequential versus Synchronic

70 69 Trompenaars Hampden-Turner 06/ Time Orientation JUST IN TIME Sequential versus Synchronic

71 70 Trompenaars Hampden-Turner 06/ Main Challenges

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73 72 Trompenaars Hampden-Turner 07/ Internal versus External Control Internal Control Nature as a mechanism Dominance over nature External Control Nature as an organism Subjugation to nature

74 73 Trompenaars Hampden-Turner 07/ Internal versus External Control A. What happens to me is my own doing. B. Sometimes I feel that I do not have enough control over the direction my life is taking.

75 74 Trompenaars Hampden-Turner 07/ Internal versus External Control What happens to me is my own doing

76 75 Trompenaars Hampden-Turner Balanced Score Card Dilemma… From the Balanced to the Integrated Score Card

77 76 Trompenaars Hampden-Turner Inner Directed Improvements in Business Processes Outer directed increase in customer satisfaction From the Balanced to the Integrated Score Card

78 77 Trompenaars Hampden-Turner Inner directed improvements Integrated growth: Pushing through the Pull Outer directed increase in customer satisfaction Lean but mean Customers creature

79 78 Trompenaars Hampden-Turner 07/ Main Challenges

80 79 Trompenaars Hampden-Turner Dilemma Theory Resolving Strategic Issues DILEMMA (from the Greek meaning) TWO-PROPOSITIONS IN (APPARENT) CONFLICT

81 80 Trompenaars Hampden-Turner Either - Or

82 81 Trompenaars Hampden-Turner And - And

83 82 Trompenaars Hampden-Turner Through - Through

84 83 Trompenaars Hampden-Turner Integrate central with decentral

85 84 Trompenaars Hampden-Turner Vicious and Virtuous Circles

86 Thank You ! To download this presentation: Go to Password = space2008 Fons Trompenaars Valencia 10 th April 2008


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