Cross-cultural Differences in Getting Agreement

1. Cross-cultural Differences in Getting Agreement Karen S. Walch, Ph.D.

2. Global mobility and Cultural drift Recognize global changing ‘center of gravity’ Adapt to speed, volume, magnitude and dynamic change Problem solve with lack of predictability of issues and events Manage mixed meaning and values of fairness and trust Expand negotiation and performance through increased mindfulness and flexibility where cultural gaps exist

3. “The Shifting Economic Center of Gravity…” 1Calculated by weighting national GDP by each nation’s geographic center of gravity; a line drawn from the center of the earth through the economic center of gravity locates it on the earth’s surface. For detailed analysis, see Richard Dobbs et al., Urban World; Cities and the Rise of the Consuming Class, McKinsey Global Institute, June 2012, pp. 61-72. Source: University of Groningen; McKinsey Global Institute analysis of data compiled by Angus Maddision 1980 1970 2000 1990 1960 1950 2010 1940 1913 2025 1820 1500 AD1

4. Population estimate in 2050 is 9.6B, previously 7.2B We live in interesting times Faces of the Future, The Economist, June 2013

7. The six levels of culture … Functional Culture National / Societal Culture Team Culture Identity Group Culture Individual Culture Organizational Culture

8. Behaviour Norms Beliefs & Assumptions Values Emotions Culture Short Definition: What is expected, reinforced and rewardedby and within a particular group.

9. Values Drive Behavior Describe: Observable Behavior Interpret: Cognition Evaluate: Emotion * The Iceberg Model* Edgar Schein, MIT 9

10. NEGOTIATION: Basic means of getting what you want from others.

11. Negotiation • Two or more parties must make decisions about their interdependent goals • There is no clear/established method for making this decision.

14. Is Time Fixed or Fluid ? Fixed • Precise definition of punctuality; time determines actions • Fluid • Loose definition of punctuality; actions determine time

15. How do Focus on Accomplishing Tasks? Being • Relationship-centered; focus on establishing personal, trusting relationships; emphasis on contemplation and reflection Doing • Task-centered; focus on accomplishing tasks; emphasis on action

16. Thinking Style Orientations that impact how people tend to process information in work situations

17. How do you Focus on taking in information? Single-Focus • Concentration on one task at a time; high commitment to schedules Multi-Focus • Concentration on multiple tasks and/or relationships simultaneously

18. How much context or cues beyond verbal to you need? High Context • Reliance on implicit and tacit communication of meaning Low Context • Reliance on explicit and precise communication of meaning

19. Do you start with the big picture or with the details? Linear • Focus on the analysis of individual components and points rather than the whole • Systemic • Focus on the big picture and causal connections

20. Sense of Self Orientations that impact how people tend to view identity and motivation in work situations

21. How do you structure power relationships? Hierarchy • Expectation of social stratification and differentiated power structure • Equality • Expectation of minimized social stratification and egalitarian power structures

22. What is your tolerance for ambiguity and uncertainty Order • Emphasis on rules and procedures; value placed on predictability and the minimization of ambiguity • Flexibility • Emphasis on improvisation; value placed on risk-taking and tolerance for ambiguity • http://www.youtube.com/watch?v=4phFYiMGCIY&feature=related

23. Example Applications Cross-functional collaboration Negotiating inclusive norms Influencing in a global matrix 1. Assess their social network and critical relationships 2. Identified cultural gaps 3. Develop and style-switching strategies peer coaching 4. Track and continuously improve through peer coaching Applied COA to map their experience and respective functional norms Implemented a cross-functional workout based on the principles of “Cultural Dialogue” to define new norms and commitments Shifted Regional Cultural Preferences to Global Cultural Thinking Decreased Cultural Mishaps and Increased Positive Team and Rapport Enhanced “Style Switching” Abilities and Empathy 4. Increase in “Cultural Dialogue” Shorter product development cycles Inclusive workplace > Increased bid win rate Improved individual leadership acumen

24. KEY TAKE AWAYS • Do Cultural due diligence: • Assess and prepare for the positive effects of culture in preparation for a venture or engagement. • Practice Style Switching: • Use a broad and flexible repertoire behavioral skills depending upon the given situation. • Lead Cultural Dialogue and Mentoring: • Close cultural gaps and create cultural synergy through advising, conversation and learning from others.

25. Grazie! Tak! Merci! Toa chie! Arigato! Spasiba! Thank you! Gracias! Go maith! Dankeshoen! Gmadlob! Dank je! Shukran! Dziakuju! Do jie! Tashakkur! Sayol! Diolch! Dakujem! XieXie!