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The Culture Factor in a Multinational Organization

Several years back when I was helping a large Indian multinational company to build one global corporate identity across 20 countries, one of their American leaders told me that recently a policy document designed by their Indian Corporate HR team was considered so sexist by the American team, they had to redesign it.

What we are looking at here are ‘emotions’ influenced by strong National/ Country Culture. If you put a bunch of leaders from different countries in a company which has a strong Corporate Culture driven by its early promoters and the location of the corporate HeadQuarters - you have a heady mix of different emotional relations to the company’s organizational practices. Some naturally relate to the company practices while others find it stressful to adapt.

In a company with a strong corporate culture you are expected to behave in a certain fashion in order to be successful. There are written/ unwritten rules, norms, practices that influence the way you meet and greet people, conduct a team meeting, provide feedback, engage with your colleagues, celebrate success, ritualize certain behaviors – all are within the domain of your organizational practices aka Organizational / Corporate Culture. Corporate Culture lays down what you are required to do – how you should behave. Your emotional alignment or lack of it with the corporate culture, however, may be influenced by which country you come from, what your nationality is, how you usually resolve certain social dilemmas and so on. National and Corporate Culture intertwined together is the overall Culture that forms the DNA of an organization.

Multinational Corporations are well advised not to undermine the Culture Factor. How critical it is, is best stated by none other than Lou Gerstner, the former turn-around CEO of IBM:

“Until I came to IBM, I probably would have told you that Culture was just one among several important elements in any organization's makeup and success - along with vision, strategy, marketing, financials, and the like... I came to see, in my time at IBM, that culture isn't just one aspect of the game, it is the game. “

Want to ignore Lou, do it at your own peril !

Cross culture communication

Cross Cultural Communication: Who is right and Who is wrong?

CROSS CULTURAL COMMUNICATION: WHO IS RIGHT AND WHO IS WRONG?

AutoErste GmbH is a large multi-national Automobile design and Manufacturing company headquartered in Germany. In Global Shared Service (GSS) organization of AutoErste, German and Indian teams work together to support Account Payable and General Ledger processes of one of the Business Units of AutoErste.

Rajiv, from India team, was working hard on a particularly difficult issue which did not have a very straight forward solution that has been tried before. While German team was not very keen to accept such issues and advised that GSS sends it back to the internal client for more data points, Rajiv wanted to try out a different solution approach.

Frieda from the German team, who was recently promoted to a lead position was getting rather impatient to know the status of this ticket. She set up a meeting with the Indian team: her first one with the Indian colleagues.

Frieda opened the meeting by right upfront asking the Indian team why they were still working on the issue, what were the problems that they have encountered, what was hindering their progress and what was their plan for the resolution. Indian team who was interacting with Frieda for the first time was rather silent facing such a barrage of questions from someone who they were meeting for the first time.

Looking at the silence of his team, Indian team lead Arun, asked Rajiv who was working on the problem, to explain the issue.

Rajiv gave a broad overview of his plan going forward and concluded saying “In any case I am still investigating and should be able to crack it. I will get back soon”

Frieda was not comfortable with Rajiv’s answer, she was not sure if the problem would get addressed at all in the first place but had no means to probe further. The meeting ended without further exchange of dialogues.

After a day’s effort, Rajiv successfully resolved the issue and sent a mail to all concerned, including Frieda, detailing the proceedings of how he had spent one full day in the investigation and resolved the problem.

Is the scenario described above an example of a seamless cross border team? Well far from it. All of us know that. But what really went wrong? Was Frieda right in her approach to the Indian team. Should Rajiv have communicated things more precisely? Could both sides do things differently? Clearly this is a case of lack of Intercultural Competence. So, who was right and who was wrong? Interestingly in the cultural context neither party was wrong? They acted the way they have been culturally programmed. Each one saw through their Culture filter being completely oblivious of their tinted Culture lens.

Hofstede-culture-lens

We are generally not aware of the lens we wear. Hofstede 6D model of National Culture provides the tool and the language to understand this National culture filter all of us carry by virtue of our social upbringing in our first 12 -15 years formative life. Hofstede 6D Model of National Culture explains how national culture shapes our emotional relationship to fundamental
social dilemmas.

Behaviours of Frieda and Rajiv can be explained by the following chart where all 6 Dimensions of National Culture of Germany and India are compared. We are generally not aware of the lens we wear. Hofstede 6D model of National Culture provides the tool and the language to understand this National culture filter all of us carry by virtue of our social upbringing in our first
12 -15 years formative life.

Hofstede 6D Model of National Culture explains how national culture shapes our emotional relationship to fundamental social dilemmas. Behaviours of Frieda and Rajiv can be explained by the following chart where all 6 Dimensions of National Culture of Germany and India are compared.

 

Country comparison chart

For explanations of the country culture characteristics of Germany and India follow the link below

Country Comparison

Do you have a multi-national team that can get benefitted by cross-cultural awareness and communication? We have been helping clients across every content for the last 3 decades. For more on our of the shelf and Customised offering to address your Cross-Cultural issues click below to schedule a meeting with our cross-cultural expert.

why changing Organization culture is difficult

“Decoding the Challenge: Unraveling the Complexity of Changing Organizational Culture – Part 2”

Changing Organizational Culture – why is it so difficult?

(Part 2)

Clearly before you go about changing the Company culture you need to be equipped with enough
data on 2 distinctive stages of your Culture,

1. The Current state of the Culture

2. The Target state of the Culture

If one goes around the company and asks people at random to describe their organizational culture,
one would get the description from the lens of the individual who perceives the culture based on the
vantage point s/he is located on. Therefore, one might get as many descriptions as the number of
people one asks. While these descriptions collectively might give us a sense of the overall culture or
at least some characteristics of the same, clearly one cannot design a transformation plan based on
such unstructured perceived descriptions of a company culture. What we need is a measurement
against a well-defined model which is validated by scientific research.
We at HI use HI’s 8 dimensional Multi-Focus Model to measure Current State of Culture by
administering 70 + questions to the target audience and running analytics on the answer pattern of
the group. The design of the questions and the analyses of the data ensure that we get unbiased
measure of the current culture. Apart from the scores of the current culture in each dimension of
the model ( https://hi.hofstede-insights.com/multi-focus-model) , the scan report provides a host of insights into multiple aspects such as Cultural identity, trust & security level in the company, acceptance of leadership style, level of
engagement of people, ease / difficult to change etc.

While getting the current state of the Company culture is obtained by measuring responses from the
target group through a well researched set of questionnaire, determining the target culture is more
difficult.
Why ? Because to get to determine what kind of Culture we should have in our organization, there
must be clear understanding of the purpose, vision, strategic intent and values of the organization.
The organizational culture without the context of its business goals and the environment in which it
operates or interacts with, does not serve the purpose of lending itself to be the competitive
advantage of the company, nor does it become an enabler of the realization of its strategic goals and
objectives.
Culture building starts at the top. And Culture needs to be aligned with Business Strategy. The
process, therefore, of determining what Culture an organization should aim for, starts with
clarification and reflection of its purpose and business strategy. The same is achieved through a
facilitated workshop with the leadership team who are systematically led to clarify the business
strategy and translate the same to target organization culture.
Armed with both Current Actual Culture and the Target Optimal Culture we are now in a position to
do the Gap analysis and identify Change areas the organization needs to focus on. HI methodology
breaks down broad change areas to actionable change levers that are mapped on to different layers
of the Culture onion we spoke about in the 1st part of this article.
In summary as difficult as it may sound, Culture change process can be broken into more easily
understood steps and the same may be realized step by step.

why changing Organization culture is difficult

Changing Organizational Culture – why is it so difficult? Part – 1

Changing Organizational Culture – why is it so difficult?

(Part 1)

Organizational Culture is all pervasive in an organization. It is intricately woven into every layer of the organization. Built over a period right from its inception, it is shaped and influenced by several elements. Some of them are:

Promoter / Founder CEO and the leadership team

Purpose / Vision / values of the organization

Strategic shifts the organization has gone through at various stages of its life cycle

The nature of its business and the environment in which it operates and so on.

All the above factors program the collective mindsets of the people inside the organization and consequently ‘what and how we do things around here aka Company Culture gets formed. So, it is indeed complex.

So how does one bring about changes in such a complex entity? Before we address that let us also reflect on how does a company culture manifest itself? Enter the Culture onion.

Company Culture Infographic

As you see Culture is manifested through different layers of the onion. The onion needs to be peeled,and some or all of these layers need to undergo change depending on the level and nature of culture change one is seeking.

How then one go about changing layer by layer of a Company Culture?

Fortunately, we have cracked the science of Culture Change approach regardless of whether you want your culture to become more agile, more innovative, more customer centric, what have you.

Watch this space for part 2 of this blog for more on that...

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What are the drivers of Organizational Culture

In a recent survey published in Forbes undertaken by The Alternative Board, 39% of respondents concluded that Management style is the key driver for Organizational or Company Culture. Employee experience weighed in second with 30% respondents and Company reputation garnered 18%. This survey of small businesses across industries also revealed that Business owners impacted culture significantly. That brings us to the question – What are the drivers of organizational culture? We’ll start by defining organizational culture.

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What is organizational culture

Organizational culture is the way in which people in an organization relate to each other, their work and the outside world, in comparison with other organizations. Your Organizational Culture shows how your organization works: how things get done, the interactions between people, and employee relationships to their work and the outside world. The best organizations often place equal emphasis on strategy and culture. Such organizations create a culture that motivates their teams. Organizational Culture is what differentiates your business, so it is important to know the various factors that contribute to your company’s culture.

Are you looking for consultation on the perfect Organizational Culture for your company?

Organic culture vs Active Culture

Organic culture vs Active Culture

An organic approach means that management takes more of an observational approach to culture development so that culture develops naturally over time, or that the culture of the organization has not been considered at all. There are serious limitations and risks involved with the organic growth of your culture because it’s left to take its own direction – and this may not be aligned with your organization’s goals.

An active approach to Organizational Culture refers to organizations where the  management takes the lead in proactively defining and implementing an optimal organizational culture. This can involve leading by example, training sessions, consultant guidance and more. It’s important to remember that while Organizational Culture manifests over time on its own, taking a more active approach will help you strategically design it. With proper guidance on your part, you can shape it to benefit your employees, adapt to the current business landscape, provide better customer service and stand out from competitors. Hofstede Insights can work with you and help you actively design an optimal culture to support your business strategy, both in the short and long run.

Find out how Hofstede Insights can help you implement a more active approach to your organizational culture 

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The drivers of Organizational Culture

The culture of an organization is shaped by events and practices within your organisation. Knowing what influences this can help you perpetuate a strong culture that will support your business strategy and enable you to achieve excellent results:

Leadership Style: how is your company is being managed? What is the hierarchical  structure and what are the decision-making methods and the ways in which policies are enforced in your organisation?

Mission, Vision and Value: this hinges on the purpose of your business and what your products and services stand for. Your mission, vision and values mirror your intentions, and these are important factors that inspire your employees.

Work Environment: The kind of workplace you have defines how employees undertake their tasks and interact with their colleagues.

Communication: can influence employee-to-employee, employee-to-management and employee-to-clients relationships. This also depends on how people share information in your organization and whether you encourage transparency in internal communications.

Orientation: Is your business people-oriented, task-oriented or function-oriented? Knowing the priorities of your business can help you either maintain or improve the existing culture in your workplace.

Hofstede Insights can help you build an effective and sustainable organizational culture.

Both the Management and Employees have a role in shaping Organizational culture

Top management needs to be actively involved. Management’s role is to design the optimal culture according to the organisation’s core values and needs. The activities and initiatives you implement must also clearly reflect what your business represents to ensure that your Organizational Culture is on the right track to support your company’s success. It’s also critical to identify your ideal culture and share it with appropriate stakeholders so you can guide them, and they can play an active role in its development.

Moving toward a culture that makes more sense for your organisation also lies in the hands of your employees. The people inside your organisation are paramount in transforming the overall company culture.

Employees have a key role and can make a significant contribution. By being culture advocates your team can display your company’s culture in the way they relate to other workers, how they work themselves and how they represent the business to the outside world. Culture will only translate into success if everyone in the team is aligned with each other and united with a common purpose and accountability.

Reach out to us to discuss the challenges faced by your organization and practical steps to build an optimal Organizational Culture