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Cultural Changes

Cultural Changes. Scott Wright October 2012. “Change is the only constant” “Mudança é a única constante” ~ Heraclitus – Greek Philosopher. What is Cultural Intelligence?. CQ is the capability to function effectively across national, ethnic, and organizational cultures. (Ange and Dyne).

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Cultural Changes

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  1. Cultural Changes Scott Wright October 2012

  2. “Change is the only constant” “Mudança é a única constante” ~ Heraclitus – Greek Philosopher

  3. What is Cultural Intelligence? CQ is the capability to function effectively across national, ethnic, and organizational cultures. (Ange and Dyne)

  4. Why Cultural Intelligence? • 37-70% of international joint ventures fail because of cultural differences (International Joint Ventures: Theory and Practice, Yan and Luo) • 90% of leading executives from 68 countries named cross-cultural leadership as the top management challenge for this century (Economist Intelligence Unit, “CEO Briefing”)

  5. Why Cultural Intelligence? • IBM study of 1,500 CEOs cited: Increased globalization leading to the need to lead across cultures as a challenge to future leaders. Source: IBM, Capitalizing on Complexity: Insights from the Global Chief Executive Officer Study

  6. Hofstede’s Cultural Dimensions • Pesquisa feita com empregados da IBM • Tamanho da amostra 116,000 • 53 paises • Identified 5 dimensions: • Poder/Distancia • Individualismo • Masculinidade/Feminilidade • Incerteza/Evitar • Orientacao a longo prazo

  7. Gapminder.org Video http://www.gapminder.org/videos/200-years-that-changed-the-world-bbc/

  8. Power/Distance (Poder/Distancia) In high PD countries, you would probably only send reports to top management and have closed door meetings with a select few powerful leaders.

  9. Power/Distance (Poder/Distancia) Brazil ___ US 40 China 80 India 77 World Average 53

  10. Individualism (Individualismo) A marketing campaign that emphasized the benefits to the community would likely be well-received in a low IDV country.

  11. Individualism (Individualismo) Brazil ___ US 91 China 20 India 48 World Average 40

  12. Masculinity-Femininity (Masculinidade/Feminilidade) When opening a new office in a high MAS country, you might have better success if you appointed a male employee to lead the team.

  13. Masculinity-Femininity (Masculinidade/Feminilidade) Brazil ___ US 62 China 53 India 56 World Average 47

  14. Uncertainty/Avoidance (Incerteza/Evitar) When discussing a project with a high UAI country, make sure you investigate many options and then present a limited number of choices with very detailed information regarding risks.

  15. Uncertainty/Avoidance (Incerteza/Evitar) Brazil ___ US 46 China 51 India 40 World Average 61

  16. Long Term Orientation(Orientacao a longo prazo) Low LTO countries don’t value tradition as much as others and therefore are likely to be willing to be more innovative.

  17. Long Term Orientation(Orientacao a longo prazo) Brazil ___ US 29 China 118 India 61 World Average 44

  18. Movendo seu Elefante

  19. Change is difficult • Multiple studies have shown that 70% of the time, when significant change is needed: • People back away • Try but fail miserably • Stop, exhausted, after achieving half of what they want using twice the time and money

  20. Mudança envolve três elementos Guia – intelecto Elefante - motivação A trilha - ambiente

  21. Changes • Change at every level • Individual • Organizational • Societal • For anything to change, someone has to start acting differently.

  22. Knowledge Does Not Change BehaviorConhecimento não altera o comportamento Overweight doctors – médicos obesos Divorced marriage counselors - conselheiros matrimoniais divorciados Corrupt police officers – policiais corruptos Depressed psychologists – Psicologos depressivos

  23. The Rider Riders can think, plan and plot a course for a better future Riders love to contemplate & analyze but the analysis is usually directed at problems rather than bright spots Example - Malnutrition at a Vietnamese village

  24. Decision Paralysis • Retirement options • For every 10 additional options, participation goes down by 2% • 6 jams vs. 24 jams • Shoppers who viewed only 6 jams were 10x more likely to buy • Speed dating • Young adults who met 8 other singles made more “matches” than those who met 20

  25. Rider Review

  26. Motivating the Elephant • Managers initially focus on strategy, structure, culture or systems which lead them to miss the most important issue • Behavior change happens in highly successful situations mostly by speaking to people’s feelings Source: John Kotter in “Heart of Change”

  27. Motivating the Elephant • Most people think change happens in this order: • Analyze, think, change – generally unsuccessful • See, feel, change – is more successful You’re presented with evidence that makes you feel something – speaks to the elephant • Gloves (luvas)

  28. Hospital Screen Saver

  29. http://www.youtube.com/watch?v=h-8PBx7isoM&NR=1

  30. Saving Energy Because the Neighbors Do A program of telling homeowners how their electricity use compared with their neighbors' had the effect of cutting energy consumption by 2%, the same as the impact of an 11% to 20% rate hike, says Hunt Allcott of MIT. The research shows that interventions not based on electricity prices can substantially and cheaply change consumer behavior, Allcott says.

  31. Social vs Market Norms • Subjects asked to use a computer to drag circles from one side of the screen into a square for 5 minutes. • Rewards given for the task were • $5.00 moved 159 circles • $0.50 moved 101 circles • $0.00 moved ___ circles

  32. Social vs Market Norms Senior Citizens Association asked lawyers to offer a discounted price of $30/hr – denied Lawyers then asked to help for free – accepted Daycare imposed fines for parents being late

  33. Candle Problem

  34. 2 groups asked to solve problem Offered $20 for best time or $5 for fastest 25% No reward structure Only measured for time

  35. 2 groups asked to solve problem Offered $20 for best time or $5 for fastest 25% No reward structure Only measured for time Took 3 ½ minutes longer

  36. Candle Problem – tacks out of box

  37. 2 groups asked to solve problem with tacks out of box Offered $20 for best time Or $5 for fastest 25% No reward structure Only measured for time

  38. 2 groups asked to solve problem with tacks out of box Offered $20 for best time Or $5 for fastest 25% No reward structure Only measured for time This group was faster

  39. Incentives • If-then rewards work really well for those sorts of tasks, where there is a simple set of rules and a clear destination to go to. • Rewards, tend to narrow our focus and concentrate the mind. • London School Economics looked at 51 studies of pay-for-performance plans – financial incentives can result in a negative impact on performance.

  40. Optimism Bias • We’re more optimistic than realistic • 80% of us have it • Getting along with others • Driving ability • Honesty

  41. Shrinking Change Financial advisors recommend paying down high-interest debt first Make the change small enough that people can easily feel an accomplishment

  42. Shrinking Change Car wash frequent-buyer cards study 19% returned 8 times 34% returned 8 times

  43. Elephant Review

  44. Shaping the Path • “Fundamental Attribution Error” • Psychologist Lee Ross • We tend to attribute people’s behavior to the way they are rather than to the situation they are in. • Person driving recklessly • Nurses distributing wrong pills • Errors dropped 47%

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