1. Understanding and Defining Cultural Differences A Great Enabler for Change Brian A. Mace LtCol, United States Marine Corps PMP, Certification in Organizational Change

2. Overview Project Insights Project Insights Why people prefer to avoid change Why people prefer to avoid change What is Culture? What is Culture? Identifying Cultural Differences Identifying Cultural Differences Reconciling Differences Reconciling Differences Sources for Expanding Our Cultural Understanding Sources for Expanding Our Cultural Understanding Questions Questions

3. What is a Project? Attributes Attributes TemporaryTemporary Unique product, service, or resultUnique product, service, or result Progressive ElaborationProgressive Elaboration Project Management Book of Knowledge (PMBOK, 2000) …a project is about implementing change!

4. What is Project Management? The application of knowledge, skills, tools and techniques to project activities to meet project requirements Project Management Book of Knowledge (PMBOK, 2000) …therefore, project managers are “Change Agents”

5. Who are the Project Stakeholders? Sponsor – Horsepower and $$ Sponsor – Horsepower and $$ Innovators – The brains behind it! Innovators – The brains behind it! Change Agents – Project Manager, Action Officers, etc. Change Agents – Project Manager, Action Officers, etc. Opinion Leaders – Positions and power to influence adopters. Opinion Leaders – Positions and power to influence adopters. Adopters – The end users. The CUSTOMERS!! Adopters – The end users. The CUSTOMERS!!

6. Spectrum of Acceptance Rogers, E. M. (1995). Diffusion of Innovations. New York: The Free Press. Innovators Early Adopters Early Majority Late Majority Laggards XX + sdX - sdX - 2sd Average Time of Adoption Time

7. Why is change so difficult? Comfort Zones Comfort Zones Complacency Complacency Fear Fear

8. “Who moved my cheese?” Spencer Johnson, M.D. Sniff, Scurry, Hem & Haw Change can only surprise you if you don’t expect it Change can only surprise you if you don’t expect it Overcoming fear is the key Overcoming fear is the key Fear in the mind is almost always worse than reality Fear in the mind is almost always worse than reality Promote environment of optimism versus pessimism Promote environment of optimism versus pessimism Johnson, S., 1998. Who Moved My Cheese? New York: G. P. Putnam’s Sons

9. “The Writing on the Wall” Johnson, S., 1998. Who Moved My Cheese? New York: G. P. Putnam’s Sons Change Happens They keep moving the cheese Anticipate Change Get Ready for the Cheese to Move Monitor Change Smell the cheese often so you know when it is getting old Adapt to Change Quickly The sooner you let go of the old cheese, the sooner you can enjoy the new cheese Change Move with the cheese Enjoy Change Savor the adventure and the taste of the new cheese Be Ready to Change Quickly and Enjoy it Again & Again! They keep moving the cheese

10. What is Culture? Definition – “A pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid and, therefore to be taught to new members as the correct way to perceive, think, and feel in relation to those problems” (Rogers, 1995) Definition – “A pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid and, therefore to be taught to new members as the correct way to perceive, think, and feel in relation to those problems” (Rogers, 1995)

11. Levels of Culture Cultural differences can exist in any setting involving varying groups: Cultural differences can exist in any setting involving varying groups: Inter-organizationInter-organization Intra-organizationIntra-organization Organizations include any grouping of people (corporations, societies, etc.) Organizations include any grouping of people (corporations, societies, etc.)

12. 7 Dimensions of Difference Universalism vs. Particularism – (Rules vs. Relationships) Universalism vs. Particularism – (Rules vs. Relationships) Individualism vs. Communitarianism (Self interest vs. Group interest) Individualism vs. Communitarianism (Self interest vs. Group interest) Neutral vs. Effective (Reason vs. Emotion) Neutral vs. Effective (Reason vs. Emotion) Specific vs. Diffuse (Compartmentalization versus Depth in relationships) Specific vs. Diffuse (Compartmentalization versus Depth in relationships) Achievement vs. Ascription (Doing vs. Being) Achievement vs. Ascription (Doing vs. Being) Synchronous vs. Sequential (Time is circular vs. Time is a race) Synchronous vs. Sequential (Time is circular vs. Time is a race) Inner Directed vs. Outer Directed (Control Nature vs. Align with Nature) Inner Directed vs. Outer Directed (Control Nature vs. Align with Nature) Trompenaars, F., & Hampden-Turner, C. (1998). Riding the Waves of Culture: Understanding Diversity in Global Business. New York: McGraw-Hill.

13. Recognizing Differences May be: May be: Explicit (easily observed)Explicit (easily observed) Implicit (hidden, requiring more effort)Implicit (hidden, requiring more effort) Both are potential barriers Both are potential barriers The key is to quickly and efficiently identify both types The key is to quickly and efficiently identify both types

14. How can we identify Cultural Differences? Interviews Interviews Questionnaires Questionnaires Direct Observation Direct Observation These require time and should, therefore, be implemented early in the project life cycle

15. What if we just build a better mousetrap and let the customers come to us? Communication Required

16. Communication leads to Conflict Resolution Engage all parties Engage all parties Look for hidden dilemmas Look for hidden dilemmas Communication is the first step toward reconciliation Communication is the first step toward reconciliation

17. You cannot “over-communicate”! Be consistent and accurate Be consistent and accurate Rumors and/or lack of information can erode support Rumors and/or lack of information can erode support Don’t miss opportunities to praise positive results and/or milestones achieved Don’t miss opportunities to praise positive results and/or milestones achieved Bad news Bad news Gets worse with ageGets worse with age Reveal it as early as possible to allow for recoveryReveal it as early as possible to allow for recovery Dilute it by providing information on recovery plansDilute it by providing information on recovery plans

18. How do we change the organizational culture to conform with our project? “WE” don’t! “WE” don’t! Only time and the shared experience of the members will change the culture Only time and the shared experience of the members will change the culture We must first seek to understand the cultural differences We must first seek to understand the cultural differences …then, establish an environment for change

19. So what do we do as Project Managers? Realize that we are cultural “change agents” Realize that we are cultural “change agents” Learn how to identify cultural differences that may impact our projects Learn how to identify cultural differences that may impact our projects Learn how to resolve these cultural differences Learn how to resolve these cultural differences

20. How are cultural differences resolved? “Reconciliation” “Reconciliation” Maximize the strengths of each positionMaximize the strengths of each position Minimize the weaknesses of each positionMinimize the weaknesses of each position The resulting position is synergistic The resulting position is synergistic Cultural reconciliation greatly simplifies project implementation (fewer people fighting the effort!) Cultural reconciliation greatly simplifies project implementation (fewer people fighting the effort!) This is NOT a compromise, which can erode BOTH positions This is NOT a compromise, which can erode BOTH positions

21. The “Horns of a Dilemma” Universalism Particularism Compromise 10 0 Reconciliation

22. Sample Survey Question: Universalism vs. Particularism Scenario: You are riding in a car driven by a close friend and he hits a pedestrian. You know he was going 15 mph over the speed limit. You are the only witness and his lawyer says that he can avoid serious consequences if you testify that he was within the speed limit. a) a) Obligation to tell the truth. I will not perjure myself, nor should a real friend expect me to do so. (Universalism) b) b) Obligation to tell the truth. I will not perjure myself, but I owe my friend an explanation and all the financial support I can provide. (Reconciled) c) c) My friend deserves my support. I will not abandon him in a court of strangers based on an abstract law or principle. (Particularism) d) d) My friend deserves my support whatever his testimony, yet, I would urge him to find within our friendship the strength to allow us both to tell the truth. (Reconciled) e) e) I will testify that my friend was going a little faster than allowed, but that it was difficult to read the speedometer. (Compromise)

23. Reconciled from Universalism (Response B) Universalism Particularism 10 0 Response A Response C Response B E Confirms the Rule then spirals toward B

24. Reconciled from Particularism (Response D) Universalism Particularism 10 0 Response A Response C Response D E Confirms the friendship then spirals toward D

25. Do your homework! Spend some upfront time studying the stakeholders (don’t assume anything) Spend some upfront time studying the stakeholders (don’t assume anything) Compare cultural values Compare cultural values Pay close attention to value differences and address them early in the process Pay close attention to value differences and address them early in the process Involve all parties in efforts to reconcile the differences Involve all parties in efforts to reconcile the differences

26. Where can we learn about cultural change? Who are the experts? Hofstede, G. H. (2001). Culture’s Consequences: Comparing Values, Behaviors, Institutions, and Organizations Across Nations. Thousand Oaks, CA: Sage Publications. Rogers, E. M. (1995). Diffusion of Innovations. New York: The Free Press. Schein, E. H. (1992). Organizational Culture and Leadership. San Francisco: Jossey-Bass. Trompenaars, F., & Hampden-Turner, C. (1998). Riding the Waves of Culture: Understanding Diversity in Global Business. New York: McGraw-Hill.

27. Summary Project Management is about implementing Change Project Management is about implementing Change Project Managers are Change Agents Project Managers are Change Agents Cultural differences can be a significant barrier to change Cultural differences can be a significant barrier to change Reconciliation requires early identification of cultural differences Reconciliation requires early identification of cultural differences Seek first to understand! Seek first to understand!

28. ? ? Questions