1. Sales Managers’ Club 2008 Mallorca, May 19-21 By Vincent Merk
How to deal with cultural differences in an international business environment
Sales Managers’ Club 2008 Mallorca, May 19-21
By Vincent Merk

2. Game: “Tower for the Derdians”
Build a (paper) tower
Objectives of the game:
Develop cultural awareness
Train intercultural sensitivity
Train knowledge transfer
Develop group dynamics and team spirit
Address some cultural dimensions

3. Developing Intercultural Competence: the ability to reconcile seemingly opposing values (by F. Trompenaars) - The 4 Rs:
Recognise cultural
differences
Respect cultural
Reconcile cultural
Realise and Root

4. A definition…
« Culture is a set of beliefs, values, norms or standards, shared by a group of people, which help the individuals to decide what is, what can be, how to feel, what to do and how to go about doing it. » Goodenough
But…
• Culture is learned !
• Culture is forgotten - we stop being conscious of it
• Our culture follows us everywhere – we can’t just take it off and leave it outside !

5. Dividing “here” into 4 levels:
“Culture is the way we do things here”
(Deal & Kennedy)
Dividing “here” into 4 levels:
The personal culture
The national culture
The professional culture
The corporate culture

6. Corporate Culture Incubator Guided missile Egalitarian Person oriented
ORG. CHAOS
MBP
LEARNING
Egalitarian
STRATEGY
MBO
PAY FOR
PERFORMANCE
Person oriented
Task oriented
NETWORK
MBS
PROMOTION/
POWER
STRUCTURE
MBJD
EXPERTISE
Hierarchical
Family
Eiffel Tower 4

7. The onion model

8. TROMPENAARS MODEL: Seven Dimensions of Culture
RULES versus EXCEPTIONS AND RELATIONSHIPS
Universalism versus Particularism
INDIVIDUAL versus GROUP ORIENTATION
Individualism versus Communitarianism
EMOTIONS: CONTROLLING EMOTIONS versus EXPRESSIVE
Neutral versus Affective Relationships
SEGMENTING versus INTEGRATING RELATIONSHIPS
Specific versus Diffuse Relationships
STATUS based on: “What you do” versus “Who you are”
Achievement versus Ascription
TIME
Monochronic versus Polychronic
RELATIONSHIP with NATURE / ENVIRONMENT
Internal Control (dominate nature) versus External Control (part of nature)

9. UNIVERSALISM – PARTICULARISM: a case study
You are riding in a car driven by a close friend. It is getting dark outside. He hits a pedestrian crossing the street. You know he was going at least 40 km/h in a residential area where the maximum allowed speed is 30 km/h. There are no witnesses. His lawyer says that if you testify under oath that he was only driving 30 km/h, it may save him from serious consequences.
What right does your friend have to expect you to testify to the lower figure? What do you think you would do in view of the obligation of a sworn witness and obligation to your friend?

10. Universalism My friend has no/some right and I would not help% 1

11. Universalism versus Particularism Issues/problems between the two:
RULES & SYSTEMS EXCEPTIONS AND RELATIONSHIPS
Obligation to universal systems, contracts
“It depends” -
The particular situation
Positive connotation
Consistency Flexibility
Negative connotation
Rigidity Corruption
Issues/problems between the two:
The meaning of a contract
‘Objective systems’ from headquarters:
focus on global products, systems, documenting vs local adaptation and exceptions

13. Individualism vs Communitarianism Issues/problems between the two:
INDIVIDUAL ORIENTATION GROUP ORIENTATION
“I” comes first
“We” comes first
Positive connotation
Personal initiative, Commitment,
accountability teamwork
Negative connotation
Egoism, anarchy Conformism
Issues/problems between the two:
Reward systems
Decision making

14. Encounter Specific and Diffuse
Public
Private
Private
Danger Zone

15. Intercultural communication is:
Verbal vs. non-verbal communication
Words, images, song & dance
High and low context
Create and maintain trust

16. Non-verbal communication - greetings

17. High and low context High context An example: Information cultures
implicitly
contained
explicitly
conveyed
An example:
A group of Dutch tourists asks a Malaysian if Lumpur is far from here. Seeing they look tired, he sympathises and replies: “No”. After 2 hours of walking, they still have not reached Lumpur. Reaction?

18. High and low context Asian (Chinese, Japanese) High context
Arabic/ Mid. East
Latin-American
Italian, Spanish
Slavic
British English
French
American English
Scandinavian
German
Dutch
Swiss-German
High context
cultures
Low context
Information
implicitly
contained
explicitly
conveyed

19. Communication Commandments:
- Know (some of) the local language:
"Impossible is nothing," a sign in Beijing's airport and one of those funny mistranslations of the common phrase, "Nothing is impossible."
- Know about the local culture, history, traditions, happenings, events, current news, etc.
- Know your partner: job, family, hobbies, background, etc.
- And finally… Wonder, observe, listen, absorb, ask, wait, expose, try out, honour, etc.

20. Specific versus Diffuse Issues/problems between the two:
ANALYTIC, SEGMENTING HOLISTIC, INTEGRATED
Segmented relationships
Connected relationships
Positive connotation
Easy contact Personal involvement
Negative connotation
Superficial Formal
Blunt Indirect
Issues/problems between the two:
‘Losing face’
Explicit / implicit communication styles
Different ways of problem solving

21. Achievement versus Ascription
What You Do
Who You Are
STATUS ?

22. Ascribed Status
Family
Age
Gender
Education
Position in hierarchy

23. Time perception
Monochronic
Polychronic

24. Nature: Internal vs External Control
Nature as an organism
Subjugation to nature
Internal control:
Dominance over nature

25. Internal control vs External control Issues/problems between the two:
We control the environment
In charge of our own destiny
Technology push
Harmony with environment
Fate, luck
Market pull
Positive connotation
In control Adaptive
Negative connotation
Dominant, arrogant Fate used as an excuse
Issues/problems between the two:
Perceive the other as weak or as arrogant
Different ways of strategising, planning

26. A few recommendations:
In international business, it always takes 2 to…
Tango!

27. Beware of stereotyping…

28. Don’t take too much for granted !

29. Don’t go native, trying:“When in Holland, do as the Dutch do…”!

30. But just be yourself…

31. …and adapt to the local situation!

32. And watch your language!
The language of international business is…
…BAD English!!