May 31

BMW’s Intercultural Commitment Award – Highlighting the Importance of Intercultural Competence

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector 1 Comment »

The yearly BMW Group Intercultural Commitment Award has been honouring projects that promote intercultural dialogue since 1997. The award allows the BMW Group to establish partnerships with the winning projects, and is a testimony to BMW’s stated commitment to fostering peaceful and successful interactions between people from different cultures and backgrounds.

What makes an interaction successful? Can you always distinguish between one that is and one that is not? This is often a harder question to answer than you would expect.

Globes Mike Bentley i BMW’s Intercultural Commitment Award – Highlighting the Importance of Intercultural Competence

© istockphoto.com/ Mike Bentley

 

Each party may approach an interaction with different expectations as to how it should unfold and they may then leave it with different perceptions as to how it unfolded. In a business environment, you could argue that success is measured in terms of making a profit, of sealing a contract or of establishing a partnership. Yet these are end results, the final objective of an often longer process, each stage of which requires interactions such as negotiations, conversations and exchanges between individuals.

When interactions span different cultures, uncertainty increases as shared customs, communication styles and attitudes give way to rising cross cultural differences. Given the element of risk generated by cross cultural differences, no matter how technically able a business person or organisation is international success will depend on their levels of intercultural competence.

Intercultural competence is really important for any individual or organisation working globally. Anyone wishing to be considered for BMW’s Intercultural Commitment award should be able to show a high level of intercultural competence. In other words, they should have a mix of the personal characteristics and skills required to develop and maintain relationships and communicate effectively across cultures, attaining compliance and cooperation.

Intercultural competence is particularly important to consider when selecting expatriates for international assignments or appointing managers of international projects or teams. Given the ever increasing global dimension of business, however, you could argue that intercultural competence is a skill all employees of an ambitious, competitive and interculturally committed company should have. The question therefore becomes: can intercultural competence be taught, or does it only come through repeated exposure to intercultural interactions?

The answer is both. While intercultural awareness and competence can certainly be achieved by having repeated exposure to intercultural interactions and through trial and error, it is undeniably better to undertake specialist training designed to develop cross-cultural communication skills and awareness before working internationally. Once a misunderstanding has happened, it might be too late or difficult to rectify it, which in turn may cause a break in communication altogether and loss of a profitable deal.

The cultural knowledge gained and skills developed through intercultural training courses such as Developing Global Competence will provide a strong foundation from which to start a global role on the right track. By using all the tools and skills acquired through Communicaid’s cross cultural awareness training programmes, you and your company will be better equipped to deal with international colleagues and show a high level of intercultural commitment, perhaps warranting consideration from BMW’s Intercultural Commitment Award!

© Communicaid Group Ltd. 2010

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May 27

Benefits of Doing Business in France

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector 3 Comments »

As the largest country in Western Europe and the fifth economic power, France plays an important role in the European and worldwide market. Bounded by the North Sea, the English Channel, the Mediterranean Sea and the Atlantic Ocean with borders with six other countries, France is a natural crossroads for European and International trade. With its large population, well developed transport and technology infrastructures and a qualified and highly productive workforce, France is an attractive destination for foreign investments.

Understanding French values and attitudes is a prerequisite for anyone doing business in France. Communicaid’s Cross Cultural Awareness Training course Doing business in France can help international organisations gain a better understanding of French business culture and social etiquette. Listed below are some of the key benefits of doing business in France that Intercultural Training France can help you harness.

 

Eiffel Tower SOMATUSCANI i1 Benefits of Doing Business in France

© istockphoto.com/ Somatuscani

 

Geographical Location
France is located at the heart of Europe and shares borders with Belgium, Germany, Luxembourg, Switzerland, Italy and Spain. France also has direct links to the UK, Algeria and Tunisia. This unique location, recognised since ancient times, is a great asset for international organisations wanting to sell their products on the European and International market.

Large Market
Home to approximately 64 million people, France has the second largest population in Western Europe behind Germany and a good purchasing power. These two elements make France an attractive market for a large variety of products and services. Like in many other western countries, the French market is open to competition and presents many opportunities to international businesses looking for a new venture.

Qualified and Productive Workforce
Contrary to common belief, mostly due to the large amount of press around the ‘French 35 hour working week’, the French workforce is productive. Statistics show that France is the third country in terms of hourly productivity while annual and hourly productivity rates per worker is approximately 20% higher than other European countries. France also has world renowned schools and universities which provide a qualified workforce. Five of these schools (HEC Paris, INSEAD, ESCP Europe, EM Lyon and Essec) were ranked in the top 12 European business schools by the Financial Times in 2009 . In fact, more than 200,000 foreign students chose France for their international exchange programme in 2009, evidence of the popularity of the level of higher education and qualifications.

Developed Infrastructures
France has one of the most well designed and efficient transport networks in the world. The high speed train networks such as the French TGV (Trains à Grand Vitesse) is renowned for breaking speed records on a regular basis and is one of the best means of transportation in France allowing fast journeys between all French major cities and toward many Europeans capitals. In addition to the developed train infrastructure, there are approximately one million kilometres of roads and motorways. Although some are toll roads, the majority of roads are owned by the state and are free of charge, providing a fast and reliable way to transport and deliver goods around France. French waterways are also a viable alternative for transporting merchandise, thanks to thousands of canals and a large commercial fleet of canal boats. And finally, there are 500 airports in France, the main ones being Orly and Roissy Charles de Gaulle in Paris allowing for fast domestic travel and access to international destinations.

International organisations doing business in France can profit immensely from the benefits stated above, but only if they are prepared with the right level of cultural knowledge and competence. Doing business in France effectively requires a comprehensive understanding of key French values, business etiquette and communication styles. Cultural Awareness Training France courses like Communicaid’s Doing Business in France or Living and Working in France can help you to develop your cross cultural skills and ensure a successful business experience in the French hexagone.

© Communicaid Group Ltd. 2010

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May 26

Seeing Eye-to-eye across Cultures

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector 1 Comment »

 

Face-to-face meetings have a tremendous importance in the global business world. It is during these occasions that important matters are discussed and contracts are signed. Face-to-face encounters can sometimes be difficult to handle, however, especially when meeting people from different cultures where the risks of intercultural misunderstanding can jeopardise business opportunities.

One benefit of meeting international counterparts face-to-face is the ability to communicate directly without relying on virtual communication that can result in misunderstandings and confusion. While direct communication is channelled mainly by words and sentences, the major part of our message is delivered through our body language.

 

Business Woman shaking hands i Seeing Eye to eye across Cultures

© istockphoto.com/ Neustockimages

Let’s take the example of how we look at people during a conversation. In most western cultures, looking at someone in the eyes when talking is regarded as a sign of respect and truthfulness while the lack or absence of eye contact is perceived negatively as shyness or lack of attention. This perception is not shared by everyone however.

In many Arabic and Asian cultures, for instance, looking directly into someone’s eyes can be seen as disrespectful or challenging and should therefore be avoided, especially during important meetings. A French team leader and Chinese executive may experience difficulties when communicating face-to-face because of their different expectations and interpretations of eye contact. The French team leader will likely make efforts to look at the Chinese executive to build trust and establish credibility. Meanwhile, the Chinese executive may expect more indirect eye contact as this shows respect to more senior individuals. The different interpretations of eye contact can end up damaging the relationship and create misunderstanding.

This kind of cultural misunderstanding can be common without intercultural training. By participating in one of Communicaid’s Intercultural Training courses, you can increase your understanding of when and how eye contact is appropriate or not, reducing the potential for miscommunication and negative perceptions. Communicaid’s Living and Working in France or Doing Business in China cross cultural awareness training courses can help you and your organisation to gain a better understanding of your international counterparts and help you to face the challenges rising from cross cultural situations.

© Communicaid Group Ltd. 2010

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May 26

Challenges of Doing Business in the Philippines

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector 3 Comments »

 

After years of political and economic turmoil, the Philippines is now a flourishing economy in line with other industrialised Asian countries. Reform efforts since the mid 1990s have attracted much interest from abroad since and economists forecast ongoing economic growth for the upcoming years. Joining this economic upsurge is not an easy endeavour however. Cross cultural differences in business culture and everyday living in the Philippines can cause many obstacles to successful business endeavours if not carefully considered.

Philippines Volcano adrian beesley i Challenges of Doing Business in the Philippines

© istockphoto.com/ Adrian Beesley

Below are examples of five of the key cultural differences which international organisations may face when setting up or doing business in the Philippines. Cross cultural training courses such as Doing Business in the Philippinesand Living and Working in the Philippines give an in-depth understanding of the cultural behaviour and perception patterns and provide strategies and solutions on how to deal with challenges if they occur.

Hierarchy
Power relations in Philippine organisations are very hierarchical with the senior manager taking a patriarchal role at the tip of the pyramid. Employees rarely correct or challenge authority figures but follow their instructions uncommented. They are also reluctant to say “no” to superiors even when they know they won’t meet the deadline. Foreigners doing business in the Philippines tend to be irritated by this dependent working attitude and often misinterpret it as indifference or a lack of interest.

Making Decisions
Filipinos place a lot of emphasis on group harmony. Consensus is therefore crucial when making decisions so a lot of time is dedicated to hearing and considering opinions. Empirical data and rules are usually not considered a liable source in this process but attention is mainly given to intuition and immediate feelings. Not adhering to this style of negotiation can result in severe misunderstandings and even unsuccessful business outcomes. An intercultural training course on business and social culture in the Philippines will prepare you thoroughly to feel comfortable when discussing business issues with Filipino counterparts.

Personal Relationships
Closely linked to the need for group harmony is the high importance Filipinos attribute to personal relationships and relationship building. Most business relations in the Philippines are established through friends or colleagues and before business matters are discussed Filipinos like to engage in personal small talk. Foreigners often get frustrated and feel meetings do not run efficiently because so much time is designated to establishing and cultivating relationships. They tend to underestimate the importance of socialising and rapport building.

Face
The concept of face in the sense of personal reputation has a large impact on everyday behaviour patterns in the Philippines. Maintaining self-control is of utmost importance in this regard and failure to do so can result in a huge degradation of status. Filipinos therefore have a very indirect style of communication and try to remain calm and refrain from criticising people in public. For the same reason “no” as a sign of disagreement is rarely used. Foreigners often struggle to understand the importance of face. A cross cultural training course on Doing Business in the Philippines will give you an in-depth insight into acceptable communication and behaviour to avoid misunderstandings and offenses.

Time
Filipinos have a very relaxed approach to time which determines pace of life at work and outside. Deadlines and appointments are perceived as flexible rather than definite and finishing off a conversation properly is usually regarded more important than arriving on time. Foreigners often find it difficult to deal with this mañana lifestyle and the many delays they encounter when dealing with counterparts in the Philippines. A Doing Business in the Philippines intercultural training course provides the necessary insight that international business people need to be able to adjust their expectations accordingly beforehand and forego any feeling of frustration and discontent.

Acknowledging the existence of such cross cultural differences is essential when doing business in the Philippines. Yet, to be able to avoid challenges or cope with them effectively if they occur is even more important and requires an in-depth understanding of underlying cultural patterns in the Philippines. A Doing Business in thePhilippines cross cultural training course will help you to maximise the outcome of your business ventures in the Philipines. At the same time, training will organisations to build an interculturally sensitised workforce that provides an immense advantage for engaging in global business.

© Communicaid Group Ltd. 2010

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May 26

Benefits of Doing Business in the United States

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector 1 Comment »

An economic and political powerhouse, the United States is unmistakably a prominent business player. A nation founded on the fundamental principle of equality, the US is a multicultural salad bowl of diverse cultures, ethnicities, religions and races. Its vast and disparate geography breeds regional subcultures and identities which mean there is no stereotypical ‘American’.

Considering the volume of exposure many of us have to certain aspects of American culture, when doing business in the United States of America it is important not to fall in the trap of feeling it is already familiar. Just like any other country, it is imperative to understand the cultural concepts behind the surface in order to harness the many benefits of doing business in the US like those highlighted below.

 

Golden Gate Bridge San Francisco Benefits of Doing Business in the United States

© istockphoto.com/ChrisMR

 

Speed and Accuracy
The well known concept ‘time is money’ is taken extremely seriously in the US. Punctuality is an essential part of American business etiquette and deadlines are strictly adhered to. North Americans emphasise getting the best results in the shortest time so when doing business in the US you can expect things to get done quickly and efficiently.

Hard Working and Dedicated Employees
An individualistic culture, the US prizes qualities such as initiative, independence, self-reliance and personal achievement. Personal competence, professionalism and accountability for individual performance are also highly valued. These qualities have stemmed from the concept of ‘The American Dream’ which is founded on the belief in the US that hard work deserves success and financial prosperity.

Equal Footing
Despite the vast array of differences present in American society, equality forms the pillar that many social relationships are based on. One’s position in US society is determined by achievement rather than ascription due to status or age. When doing business in the US, you might initially be surprised by the seemingly informal working environment where conversational tones are employed and people are addressed by their first names. This originates from a lack of formality that is often associated with authority in other countries, but does not translate to unprofessionalism or a lack of hierarchy.

Openness to New Ideas and Opportunities
In the US, open communication seems conducive to innovation and improvement. Challenging the status quo, new ideas and progress are all actively encouraged. Additionally, employee progression in the US is encouraged and tracked by systems of continual feedback, measurement and evaluation.

Clear Rules and Instructions
As a low context culture, the United States tends to utilise communication for the exchange of information, facts and opinions. The majority of information is communicated verbally and the responsibility of making sure that the meaning is understood lies firmly with the speaker. Therefore, instructions are often delivered in a very clear, unambiguous and explicit way. Equally, a lack of formal status-driven conversational structures means questions can easily be asked and conflict is dealt with openly. When doing business in the US you should feel confident that you know where you are, what you are doing and what is expected of you.

Diverse Population
In today’s globalising world, difference is strength. Nowhere can this strength be harnessed more than in the US, which is home to approximately 307 million people from different ethnic and cultural backgrounds. Immigration from virtually every corner of the world has assured the unique cultural diversity of the US, moulding the country into what it is today.

It is clear that international organisations can greatly profit from the above benefits of doing business in the US. However, doing business in the United States effectively requires efficient strategies that maximise the ethnic, religious and cultural diversity of American society. International organisations regularly doing business with the US or employing American counterparts should have a series of Intercultural Training United States of America courses to ensure they understand the subtleties of American business and social culture on all levels. Recognising differences is only the first step. Businesses will profit immensely from developing the intercultural skills of their employees through cross cultural training courses that will help to successfully harness cultural differences in the US.

© Communicaid Group Ltd. 2010

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May 23

Cross Cultural Politeness – Beyond Please and Thank You

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector 2 Comments »

It’s no secret that it is essential to understand how to be polite and respectful when doing business internationally. But how different can politeness really be from one culture to another?

A number of unwritten principles of politeness exist which must be followed if you want to show respect and consideration to your business counterparts. Here in the UK we have been taught from a young age to say ‘please’ and ‘thank you’, to give up our seat for people who might need it or to apologise after bumping into someone.

Although we know what we need to do to be polite in the UK, many of us are unaware that doing the same thing in another culture may not be showing politeness. Failing to understand how to be polite when working across cultures can lead to communication breakdowns, damaged relationships and a loss of credibility. Cross cultural awareness training can equip us with the skills necessary to avoid these intercultural politeness pitfalls.

 

Business Woman 13 nicole waring i Cross Cultural Politeness – Beyond Please and Thank You

© istockphoto/nicole waring

 

One case of cultural variance in the understanding of politeness is the use of expressions of gratitude. In some cultures, people only expect to give or receive thanks for acts of altruism and not for tasks that are intrinsic to a person’s job, such as a bus driver or waiter. In other cultures such as the UK, however, people thank others for performing any tasks that benefit them. An example of this would be thanking the bus driver when leaving the bus.

Politeness is not always reflected through the use of please and thank you as in the example above. Using an indirect or direct style of communication can also influence the level of politeness you are showing your international counterparts. When doing business in Japan, for example, you’ll find your counterparts consider the use of direct questions to be challenging and therefore impolite. Conversely, doing business in Germany , you may find your German counterparts sometimes consider indirectness to be impolite, as the speaker’s intentions are unclear.

One theory of politeness states that in the process of communication people should consider the socio-cultural norms of people from other countries, develop tolerance and sensitivity towards these norms and work out strategies to make people feel comfortable in each other’s company.

An intercultural training course such as Working Effectively across Cultures stresses the difference in perceptions of politeness across cultures and provides specific strategies to help anyone doing business with other cultures overcome any misunderstandings that might arise.

“Treat everyone with politeness, even those who are rude to you – not because they are nice, but because you are” ~Author Unknown

© Communicaid Group Ltd. 2010

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May 19

Challenges of Doing Business in Poland

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector 2 Comments »

Poland is shaped by its long fight for independence and sovereignty which has created a very strong population attached to their traditions and heritage. These qualities are considered to be positive attributes of the Polish character but they can be a challenge for organisations keen to establish business in Poland. Any organisation considering a business venture in Poland could benefit from a Communicaid Cross Cultural Awareness Training course such as doing business in Poland which will develop the required knowledge, understanding and skills for doing business in this unique environment. Below are some of the key challenges of doing business in Poland.

 

Meeting Neustockimages i Challenges of Doing Business in Poland

© istockphoto.com/ Neustockimages

 

Structure and Hierarchy in Polish Companies
Organisations in Poland have a strong respect for hierarchy and authority, with structure and delegation coming from above. This hierarchical style is reflected in many Polish business formalities and settings, including the decision-making process and the use of professional titles. Seniority in Polish organisations is acknowledged and respected and the corporate hierarchy is often formed on the basis of age and educational background. For this reason, when negotiating, it is advisable to send delegates of a similar status to those of Polish colleagues, both in age and professional qualifications. Rules and regulations are an important part of the Polish business environment so your Polish counterparts may expect their business partners to know and appreciate established etiquette and business protocol.

National Identity
Poles are very patriotic and proud of their national identity and great achievements in fighting their political enemies. Following centuries of invasion from neighbouring countries, Poles are proud to have maintained an unbroken cultural identity and value their newly attained autonomy. Any foreigner who challenges or questions these aspects of Polish national identity risks causing grave offence.

Relationships
Doing business in Poland requires an understanding of the importance of relationships in Polish business culture. Building individual relationships is essential to the success of business objectives, especially in the long term. Polish people take time to establish relationships with business partners and to build trust. Poland has a family-focused society, and Poles value building and maintaining close personal relationships. This may be considered as a challenge for many foreigners doing business in Poland who are not used to sharing personal information with their business partners. For Poles this is one of the stages of the trust-building process.

Roman Catholicism
Religion plays a very important role in Polish culture. Approximately 90% of the Polish population consider themselves to be Roman Catholic (CIA World Factbook), and this statistic speaks volumes about the Polish mentality and identity and the influence of religion on people’s lifestyle. Religion also affects business so it is important for foreign investors doing business in Poland to be familiar with the Polish religious calendar. This includes various religious holidays in addition to the most common ones like Christmas and Easter. A knowledge of these celebrations is very important especially when planning business trips to Poland.

Communicaid’s Intercultural Training Poland courses provide an in-depth understanding of culture-specific behaviour patterns and perceptions and creates awareness for possible challenges you might face when doing business in Poland. By introducing strategies and solutions to deal with cultural differences in Poland, this Cultural Awareness Training Poland course is an ideal preparation for any organisation interested in doing business in Poland.

© Communicaid Group Ltd. 2010

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May 18

Benefits of Doing Business in Indonesia

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector 2 Comments »

After more then three centuries of colonisation by the Dutch, Indonesia finally got its independence in 1949. Now the Republic of Indonesia is the world’s third largest democracy. In the last 50 years, Indonesia has experienced rapid economic change and has grown into the largest economy in Southeast Asia.

Benefits of doing business in Indonesia MsLightBox Benefits of Doing Business in Indonesia

© istockphoto.com/ MsLightBox

Thanks to its strategic geographical location and a booming economy, there are many benefits of doing business in Indonesia. Communicaid’s cross cultural awareness training course Doing business in Indonesia will enable entrepreneurs to take full advantage of the benefits of conducting business with Indonesia. Some of the key benefits of doing business in Indonesia are described below.

Geographical Location
Located in Southeast Asia, Indonesia consists of 17,508 islands. It is the fourth most populous nation in the world and has the largest population of Muslims (CIA World Factbook). Indonesia’s nearest neighbours are Australia, Singapore, Malaysia, the Philippines and Papua New Guinea. Indonesia is an archipelago with the Indian Ocean on the West side and the Pacific Ocean on the East. The nation ranks fifth in the world on the list of countries with the longest waterways, which makes it an ideal place for doing business.

Booming Economy
Under the rule of president Suharto, Indonesia’s economy grew rapidly between 1980 and 1995, however Indonesia was one of the countries struck hardest by the Asian Financial Crisis of 1997. Due to political instability and corruption, the recovery process was slow. Today, Indonesia’s economy has grown into the largest in Southeast Asia and the country is now a member of the G20 major economies in the world (G20). Indonesia’s top export destinations and investors are the United States, China, Japan and Singapore, but many other countries are increasingly taking advantage of this competitive market.

Government Anti-corruption Strategies
Since its independence, Indonesia has suffered from corruption in all levels of business and in politics. This corruption combined with a complex bureaucracy created difficulties for organisations interested in doing business in Indonesia. In 2004 the first democratic elections were held and Susilo Bambang Yudhoyono was elected President. The new government is determined to fight corruption and bureaucracy. Yudhoyono is also battling with corruption at all levels of government, without sparing the higher officials. These are all very positive changes that combine to make doing business in Indonesia even more attractive.

Successfully doing business in Indonesia requires an understanding of Indonesian business culture and etiquette. Communicaid’s intercultural training courses such as Doing Business in Indonesiaand Living and Working in Indonesia will ensure you have the necessary understanding and expertise for the business endeavours you undertake when doing business in Indonesia.

© Communicaid Group Ltd. 2010

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May 14

Cultural Language Skills: Learning to Speak Canadian

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector 2 Comments »

‘So I pulled on my tuque and my bunny hug and went to the dep to buy a loonie for a pop…’

Canadian English has been influenced by British English and American English, as well as French, giving it a character all of its own, as anyone who understands the introductory sentence will know.

Cultural Language Skills Learning to speak Canadian Cultural Language Skills: Learning to Speak Canadian

iStock_000011902476Medium Pawel Gaul

Canada’s unique history has resulted in a language that reflects both the waves of immigration that have formed the nation and the nature of that nation’s culture.

Over the past two centuries, Canada has experienced four waves of immigration. The first consisted largely of British loyalists from the mid-Atlantic states on the eastern seaboard who were fleeing the American Revolution in the latter part of the eighteenth century. This laid the bedrock of a strong British influence on the culture and on how Canadians spoke.

Many immigrants came from Scotland and Ireland in the nineteenth century during the massive social upheavals caused by the potato famine in Ireland and the highland clearances in Scotland. The governors of Canada welcomed this immigration as they were concerned about anti-British sentiment in the wake of the Anglo-American War of 1812 and wanted to increase the numbers of British residents.

Further waves of immigration took place in the nineteenth century, peaking in 1910 and 1960. Culturally, these were more diffuse, with immigrants arriving from nations across the world, creating the multicultural society that Canada is today.

Other significant influences on how Canadian English is spoken are the First Nation languages of the Native American tribes and the French spoken in Lower Canada.

The influences of all these cultures can be seen in some of the features of the language used in Canada. For example, Canadian English retains the British English spellings of French-derived words, such as those that would end in –or or –er in American English, like color or center. Likewise, British spellings such as ‘cheque’ reveal the links that Canada has had with British financial institutions, such as the Commonwealth of Nations.

Canada is also influenced by its neighbour, the United States. There is an increasing tendency to use Americanisms, particularly among the younger generations, but older usage of words such as tire (Br. English – tyre) or curb (kerb), for example, belie links with the US automotive trade.

Ultimately, though, Canadians have created their own distinctive culture and dialect from these diverse influences. Before going on an international assignment in Canada, it’s important to learn about the key differences in language and have a familiarity of Canadian vocabulary and expressions. Communicaid’s cross cultural training for relocation courses such as Living and Working in Canada can help you to understand the Canadian communication style and anticipate any cross cultural challenges to get the most out of your time living and working in Canada.

© Communicaid Group Ltd. 2010

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May 13

International Mergers and Acquisitions: Maximising the Cultural Benefits

Cross Cultural Training, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector 2 Comments »
iStock 000000523518XSmall International Mergers and Acquisitions: Maximising the Cultural Benefits

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The recent announcement that Deutsche Bahn has acquired Arriva paves the way for the creation of one of the largest transport groups in Europe.

Deutsche Bahn operates in 130 countries around the world and is widely known in Europe for its operation of Germany’s national rail services and some key passenger and freight rail services in the UK. Arriva, a large transport services organisation, provides bus and rail services in twelve countries throughout Europe. The resulting merged group will therefore encompass a significant number of European cultures and languages.

 

This multicultural environment is likely to present challenges for the newly merged group that Deutsche Bahn and Arriva need to recognise and deal with in order for the merger to be a success. Developing multicultural project teams, managing virtual communication across Europe, negotiating organisational cultures and dealing with a number of different languages are just some of the challenges they may face. These challenges lie in different cultural values and behaviours that result in diverse business practices.

Examples of challenges rooted in cultural differences might be the greater amount of administration that is preferred in German companies, an indication of the Germans’ tendency to avoid uncertainty and risk and keep control of details. Another example is the high levels of hierarchy displayed by businesses in France while in Denmark there are more flat hierarchies and it is not unusual for decisions to be made by consensus.  The indirect communication style in the UK is another example of cultural difference which may cause confusion for Germans.  Conversely, the British may perceive the German preference for a direct communication style to be aggressive or rude.  These are just a few examples of how cultural difference can impact international business and M&As.

Research has shown that 60-80% of international mergers fail because the companies involved have not put measures in place to deal with cultural differences like these or integrate both national and organisational cultures. Developing a ‘third culture’ that is understood and accepted by employees throughout the company is one of the best ways of ensuring a successful international merger. Communicaid’s cross cultural awareness training courses for mergers and acquisitions can help employees to develop the cultural awareness and intercultural sensitivity required to understand their colleagues’ cultural values and preferences. This in turn will provide them with the opportunity to develop an integrated approach to the company’s culture, essential for any international merger’s long-term success.

Armed with an understanding of these cultural differences, managers working for Deutsche Bahn or Arriva can really harness the broad diversity that this newly formed venture has to offer. Undertaking an intercultural training course such as Managing International Teams or Managing International Mergers and Acquisitions will give international managers involved in a merger or acquisition the insights they need to develop an effective working culture that plays to the strengths of their multicultural teams and maximises the cultural benefits of their company’s acquisition.

© Communicaid Group Ltd. 2010

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