13. Cultural differences in BD Flashcards
How do high-performing culturally diverse teams achieve their success? Di Stefano and Maznezski’s answer
The key is in the teams interaction processes - how they understood, incorporated and leveraged their differences
What is the negative that can be the result of being a culturally diverse board?
Cognitive conflict (misunderstandings)
What does a CoSec require to effectively fulfil role as cultural diplomat?
- An appreciation of what it means to develop cultural awareness
- Knowledge of how the different varieties of culture might play out in the boardroom
3 different types of cultural differences
Organisational
Sector
Country
What did search firm Egon Zehnder describe as the ‘new must have’ re. board competencies?
Cultural intelligence and international experience
What can be considered a vital psychological, social and cultural competency of the CoSec?
Developing the skill and knowledge as a cultural diplomat
Milton Bennett’s 6 stages of cultural development to become more interculturally sensitive
ETHNOCENTRIC
- Denial
- Defence
- Minimalisation
ETHNORELATIVE
- Acceptance
- Adaptation
- Integration
Milton Bennett’s 6 stages of cultural development to become more interculturally sensitive - Denial
Individual not perceiving cultural difference at all or only in broad categories (foreigner, minority, etc.)
Leads to naive observations or use of stereotypes
Milton Bennett’s 6 stages of cultural development to become more interculturally sensitive - Defence
Recognition of cultural difference, but tendency to polarise as ‘us and them’
Quick to blame cultural difference for failures
Milton Bennett’s 6 stages of cultural development to become more interculturally sensitive - Minimalisation
Recognition of superficial differences (such as eating customs), while holding view that all humans are essentially the same
Obscures deeper, more important, cultural differences
Milton Bennett’s 6 stages of cultural development to become more interculturally sensitive - Acceptance
One views one’s own culture as one of a number of equally complex worldviews
Curiousness and respect towards difference, but a lack of easily adapting behaviour
Milton Bennett’s 6 stages of cultural development to become more interculturally sensitive - Adaptation
One is now able to develop communication skills and alternative behaviour for the different cultural context
Perceives others as equals, but with a different reality
Milton Bennett’s 6 stages of cultural development to become more interculturally sensitive - Integration
Internalisation of bicultural or multicultural perspectives, allowing to easily move in and out of different cultures, or conduct cross-cultural mediation
4 issues faced by multicultural teams
- Differences in communication styles
- Troubles with accidents and fluency
- Differing attitudes towards hierarchy and authority
- Conflicting norms for decision-making
4 strategies for dealing with multicultural challenges
Adaptation - acknowledging cultural gaps and working around them
Structural intervention - changing the shape of the team
Managerial intervention - setting norms early or bringing a higher level manager
Exit - removing a team member when other options have failed
Deal & Kennedy’s 5 cultural elements
Business environment- PSETLE
Values - at heart of corporate culture, reinforced be leaders and managers
Heroes - role models against which employees can compare their behaviours, including visionary leaders
Rites and rituals - ceremonies and behaviours that reinforce culture
Cultural network - rumours, gossip, behaviours
Deal and Kennedy’s 4 cultural types - low or high risk & slow or quick feedback (on success)
Tough-guy culture - high risk, quick feedback
Work-hard, play-hard culture - low risk, quick feedback
Bet-your-company culture - high risk, slow feedback
Process culture - low risk, low feedback
What % of mergers fail, and what % of these fail as a direct result of lack of cultural integration
70%
30%
Which framework looks at culture differences between sectors?
Cameron and Quinn competing values framework
Cameron and Quinn competing values framework - 2 axes
Internal or external focus and differentiation (horizontal)
Future focussed (flexibility and discretion) vs current focussed (stability and control) (vertical)
Cameron and Quinn competing values framework - internal/current
Hierarchy culture -highly formalised and structured. Premium placed on high standards, efficiency and low costs
Cameron and Quinn competing values framework - internal/future
Clan culture - friendly place to work where people share personal details. Premium placed on teamwork, participation and consensus
Cameron and Quinn competing values framework - external/future
Adhocracy culture - defined by dynamism, entrepreneurship and creativity. Premium placed on growth, innovation.
Cameron and Quinn competing values framework - external/current
Market culture - results oriented, major concern being getting the job done. Premium placed on sales, market share, status and reputation.
Which of the sector cultures do listed companies fall into and why?
Market culture - due to short-term quarterly shareholder reporting requirements
Which of the sector cultures do privately owned companies fall into and why?
Adhocracy culture - due to focus on entrepreneurship
Which of the sector cultures do public sector companies fall into and why?
Hierarchy culture - due to emphasis on efficiency and internal accountability
Which of the sector cultures do charities fall into and why?
Clan culture - as often unpaid or lower paid, values-based commitment is necessary
3 perspectives of culture worth consideration
Company culture
Sector culture
Country culture
Geert Hofstede’s 5 dimensions which differences in country culture were classified into
Power distance - extent to which less powerful members of orgs and institutions expect that power is distributed (effectively hierarchical vs flat structures)
Individualism - degree to which individuals are integrated into groups
Masculinity (and femininity) - distribution of roles between genders
Uncertainty avoidance - tolerance for ambiguity vs need for clarity
Long-term orientation - value of persistence and respect for tradition
