Fons Trompenaars

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Riding the Waves of Culture
Understanding Cultural Diversity in Business

• Fons Trompenaars

Valencia 10th April 2008
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The old MBA paradigm
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We know this right?
Lets now do it with one line.
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The new MBA paradigm with ONE line
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The new MBA paradigm
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The new MBA paradigm
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But you have to fold the paper
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Core Proposition
Successful leaders have the propensity and
competence to help organizations and its teams
reconcile dilemmas for better sustainable
business performance
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This approach leads to concrete and measurable
actions
Realize and Root Implement Reconciling Actions
Impact
Reconcile Resolve Cultural Differences
Respect Appreciate Cultural Differences
Recognize Increase Awareness
Time
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Approaching Dilemmas Navigating Strategic
Tensions
To Create Wealth is to Combine Values that are
not easily joined Therefore scarce... Therefore
profitable.
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Some hard evidence
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Our research reveals that propensity to reconcile
dilemmas correlates with bottom line business
performance
Source 21 Leaders for the 21st Century p429
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What is Culture?
Please define culture
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A model of Culture
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About Culture
Is a dynamic process of solving human
problems/dilemmas in the areas of
- Human Relationships - Time - Nature
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01/ The Car Accident
What happens to your friend?
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01/ What Right has Your Friend?

• A. My friend has a definite right as a friend to
  expect me to testify to the lower figure.
• B. He has some right as a friend to expect me to
  testify to the lower figure.
• C. He has no right as a friend to expect me to
  testify to the lower figure.

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01/ Dilemma
INTEGRITY

• The top 2 of your corporate values are
• Integrity
• We respect the cultures of others
• Please discuss in the context of these values
  what your answer would be

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Universalism versus Particularism Individualism
versus Communitarianism Neutral versus
AffectiveSpecific versus DiffuseAchievement
versus AscriptionSequential versus
SynchronicInternal versus External Control

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04
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01/ Universalism vs Particularism

• Consistency
• Systems, standards rules
• Uniform procedures
• Demand clarity

• Flexibility
• Pragmatic
• Make exceptions
• It depends
• At ease with ambiguity

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01/ Universalism
Friend has no/some right and would not help
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Universalism versus Particularism
average score
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01/ Dilemma
Globalism and Localism
Global Standards (Critical Mass)
Cultural Diversity (Differing solutions)
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01/ Globalize and Localism
Global Standards (Critical Mass)
Transnational Centers of Excellence
Cultural Diversity (Differing solutions)
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01/ Main Challenges

• 1. Mass-Customization
• 2. Co-Opetition
• 3. It is Cool to be Emotional
• 4. Moments of Truth
• 5. Servant Leader
• 6. Just In Time Synchronizing Sequences
• 7. Pushing through the Pull

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Universalism versus Particularism Individualism
versus Communitarianism Neutral versus
AffectiveSpecific versus DiffuseAchievement
versus AscriptionSequential versus
SynchronicInternal versus External Control

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07
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02/ Individualism versus Communitarianism
a) One said It is obvious that if one has as
much freedom as possible and the maximum
opportunity to develop oneself, the quality of
ones life would improve as a result.
b) Another said If the individual is
continuously taking care of his or her fellows
then the quality of life for us all will
improve, even if it obstructs individual freedom
and individual development.
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02/ Individualism
Percentage opting for Individual Freedom
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02/ Dilemma Reconciliation
The Individual and the Team

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02/ Dilemma Reconciliation
The Individual and the Team
Individual Motivation
Team Motivation
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02/ Dilemma Reconciliation
The Individual and the Team
Individual Motivation
Team Motivation
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02/ Dilemma Reconciliation
The Individual and the Team
Individual Motivation

Team Motivation
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02/ Dilemma Reconciliation
The Individual and the Team
Individual Motivation
Reward Teams for Individual Creativity AND
Reward Individuals for Team Work
Team Motivation
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02/ Main Challenges

• 1. Mass-Customization
• 2. Co-Opetition
• 3. It is Cool to be Emotional
• 4. Moments of Truth
• 5. Servant Leader
• 6. Just In Time Synchronizing Sequences
• 7. Pushing through the Pull

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Universalism versus Particularism Individualism
versus Communitarianism Neutral versus
AffectiveSpecific versus DiffuseAchievement
versus AscriptionSequential versus
SynchronicInternal versus External Control

01
02
03
04
05
06
07
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03/ Neutral versus Affective

• In my society, it is considered unprofessional to
  express emotions overtly.
• Please select your position on the statement
  above
• a) Strongly agree
• b) Agree
• c) Be undecided
• d) Disagree
• e) Strongly disagree

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03/ Neutral versus Affective
Percentage not expressing emotions overtly
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03/ Neutral versus Affective
Myers Briggs Type Indicator (MBTI)
DILEMMA
How to select the Right Person? Myers Briggs
Type Indicator (MBTI)
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03/ Neutral versus Affective
Emotions in Control
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03/ Neutral versus Affective
Emotions in Control
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03/ Neutral versus Affective
Emotions in Control
Head in Control
Heart in Passion
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03/ Neutral
Emotions in Control
Head in Control
Heart in Passion
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03/ Neutral
Emotions in Control
Head in Control
Continually checking what your heart communicates
Heart in Passion
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03/ Main Challenges

• 1. Mass-Customization
• 2. Co-Opetition
• 3. It is Cool to be Emotional
• 4. Moments of Truth
• 5. Servant Leader
• 6. Just In Time Synchronizing Sequences
• 7. Pushing through the Pull

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Universalism versus Particularism Individualism
versus Communitarianism Neutral versus
AffectiveSpecific versus DiffuseAchievement
versus AscriptionSequential versus
SynchronicInternal versus External Control

01
02
03
04
05
06
07
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04/ Specific versus Diffuse
PUBLIC
PRIVATE
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04/ Specific versus Diffuse
PUBLIC
PUBLIC
Specific Relationship
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04/ Specific versus Diffuse
PUBLIC
PRIVATE
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04/ Specific versus Diffuse
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04/ Specific versus Diffuse
PRIVATE
PRIVATE
Diffuse Relationship
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04/ Encounter Specific and Diffuse
PUBLIC
PRIVATE
PRIVATE
Danger Zone
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04/ Specificity
A boss asking to paint his house

• The colleague argues
• You dont have to paint the house if you dont
  feel like it. He is your boss in the company.
  Outside the company, he has little authority
• The subordinate argues
• Despite the fact that I dont feel like it, I
  will paint the house anyway. He is my boss and
  you cannot ignore it outside your work either.

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04/ Specificity
Would not paint the house
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From the Balanced to the Integrated Score Card
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From the Balanced to the Integrated Score Card
Integrated growth Train for Cost Cutting
Specific financial performance
Interests in future innovating and learning
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04/ Main Challenges

• 1. Mass-Customization
• 2. Co-Opetition
• 3. It is Cool to be Emotional
• 4. Moments of Truth
• 5. Servant Leader
• 6. Just In Time Synchronizing Sequences
• 7. Pushing through the Pull

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Universalism versus Particularism Individualism
versus Communitarianism Neutral versus
AffectiveSpecific versus DiffuseAchievement
versus AscriptionSequential versus
SynchronicInternal versus External Control

01
02
03
04
05
06
07
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05/ Achievement versus Ascription
STATUS ?
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05/ Achievement versus Ascription

• Family
• Age
• Gender
• Education

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05/ Achievement versus Ascription
The most important thing in life is to act as
really suits you, even if you dont get things
done
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05/ Achievement versus Ascription
Percentage not agreeing with acting as really
suits you
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05/ Achievement versus Ascription
Performance Status
The Servant Leader
Lost democratic leadership
Follow the Leader
Attributed status by seniority or role
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(No Transcript)
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05/ Main Challenges

• 1. Mass-Customization
• 2. Co-Opetition
• 3. It is Cool to be Emotional
• 4. Moments of Truth
• 5. Servant Leader
• 6. Just In Time Synchronizing Sequences
• 7. Pushing through the Pull

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Universalism versus Particularism Individualism
versus Communitarianism Neutral versus
AffectiveSpecific versus DiffuseAchievement
versus AscriptionSequential versus
SynchronicInternal versus External Control

01
02
03
04
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07
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06/ Time Orientation

• Think of the past, present and future as being
  in the shape of circles. Please draw three
  circles representing past, present and future.
  Arrange these circles in any way you want that
  best shows how you feel about the relationship of
  the past, present and the future. You may use
  different size circles.

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06/ Time Orientation
Past, Present and Future
FRA
USA
SPA
JPN
GER
UK
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06/ Time Orientation
Sequential versus Synchronic
1.45
3.00
Sequential
Synchronic
1.45 - 2.00
3.00 - 3.15
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06/ Time Orientation
Sequential versus Synchronic
JUST IN TIME
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06/ Main Challenges

• 1. Mass-Customization
• 2. Co-Opetition
• 3. It is Cool to be Emotional
• 4. Moments of Truth
• 5. Servant Leader
• 6. Just In Time Synchronizing Sequences
• 7. Pushing through the Pull

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Universalism versus Particularism Individualism
versus Communitarianism Neutral versus
AffectiveSpecific versus DiffuseAchievement
versus AscriptionSequential versus
SynchronicInternal versus External Control

01
02
03
04
05
06
07
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07/ Internal versus External Control
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07/ Internal versus External Control

• A. What happens to me is my own doing.

B. Sometimes I feel that I do not have enough
control over the direction my life is taking.
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07/ Internal versus External Control
What happens to me is my own doing
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From the Balanced to the Integrated Score Card
Balanced Score Card Dilemma
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From the Balanced to the Integrated Score Card
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Integrated growth Pushing through the Pull
Inner directed improvements
Outer directed increase in customer satisfaction
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07/ Main Challenges

• 1. Mass-Customization
• 2. Co-Opetition
• 3. It is Cool to be Emotional
• 4. Moments of Truth
• 5. Servant Leader
• 6. Just In Time Synchronizing Sequences
• 7. Pushing through the Pull

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Dilemma Theory Resolving Strategic Issues
DILEMMA
(from the Greek meaning)
TWO-PROPOSITIONS IN (APPARENT) CONFLICT
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Either - Or
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And - And
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Through - Through
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Integrate central with decentral
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Vicious and Virtuous Circles
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Thank You !

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Fons Trompenaars Valencia 10th April 2008