Feb 06

Leading across Cultures: Five Secrets of the World’s Top CEOs

Cross Cultural Training, Culture training for Business & Management, Culture training for the Public sector No Comments »

CEOs around the globe are increasingly finding themselves working in more complex situations. With the development of more advanced technology, travelling and virtual communication are much easier and cheaper. The world is quickly turning into a ‘global village’ in which leaders can interact more closely with their teams and peers. Although working internationally has become more frequent and in most cases easier than before, leading across cultures can still be quite challenging for a number of reasons.

Meeting Neustockimages i Leading across Cultures: Five Secrets of the World’s Top CEOs

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CEOs today must demonstrate a unique combination of skills to effectively lead a global organisation to international success. In addition to core leadership skills, CEOs need other intercultural skills ranging from cultural adaptability and awareness to global communication and language skills. Global leaders with a suite of intercultural skills and knowledge will be better placed to harness and manage cross-cultural differences, no matter their cultural background or the territory they work in.

A recent article in the Guardian highlighted five skills that 70 chief executives around the globe demonstrated:

  • Passionate curiosity – interest in understanding any and every situation through questioning, listening and talking with those involved
  • Battle-hardened confidence – ability to face new and unpredictable situations with confidence
  • Team understanding – understanding of their teams – the dynamics, objectives and challenges they face
  • Simple mindset – ability to make quick and concise actions
  • Fearlessness – lack of fear for future development and the improvement of current situations

These are just a few of the skills global leaders should demonstrate for international success but there are a number of other competencies that global leaders need in order to make an even greater impact on their global teams and objectives. Some of these include:

  • Openness – an open attitude to new ways of thinking, working and behaving
  • Cultural adaptability – ability to adapt their own behaviour and judgements to different situations
  • Emotional strength – a positive attitude to life and the ability to ‘bounce back’ when things go wrong
  • Perceptiveness – ability to identify cues that are not evident in verbal language and accurately interpret and understand them
  • Cultural understanding – ability to research other cultures and increase their knowledge about traditions, values and attitudes in that environment

This is just the start of a list which could go on for pages. The important thing is for leaders to recognise that they will be required to adapt their style and skills and not just stick to the core leadership skills that may have worked so well for them before when leading across cultures .

So whether it’s having a passionate curiosity or cultural adaptability, CEOs of today’s global world need to be able to apply their skills to different cultural contexts. In doing so they will not only be able to effectively influence international communication processes but they will further break down interpersonal boundaries resulting in tremendous value for both the leader and the organisation on a global scale.

Competencies above have been taken from a number of sources including The International Profiler

© Communicaid Group Ltd. 2012

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Mar 08

Cross Cultural Training for International Mergers and Acquisitions

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When different organisations merge into one, the success of the operation is not solely down to maximising market share, cost savings and efficiencies. Particularly in the case of international companies, the merging process brings together employees and staff from different cultures who may have very different expectations of how to work together.

The smooth integration of both companies is dependent on whether the organisations consider issues relating to national culture through cross cultural training programmes.

It is widely recognised that the management of organisational change and the smooth integration of corporate cultures is essential for any merger and acquisition. However, a fact many companies are not aware of is that approximately 60-80% of international mergers are unsuccessful because strategies to deal with and integrate cultural differences amongst employees were not in place.

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By integrating two different cultures, the M&A’s success depends upon creating a ‘third culture’, shared and embraced by all employees. Language, cultural values, attitudes and behaviours are issues that inherently affect the integration process, and the parties involved in the M&A need to address them.

Cross cultural training for mergers and acquisitions can help provide the necessary cultural understanding and sensitivity, contributing to the success of the merger or acquisition.

© Communicaid Group Ltd. 2010

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Mar 05

Benefits of Doing Business in India

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India is well endowed with mineral and agricultural resources and it has seen a significant increase in offshore outsourcing and manufacturing over the last couple of decades, which have helped India’s economy grow at a tremendous rate.

India’s Ministry of External Affairs reports that its higher disposable incomes, rising middle class, investment friendly policies and forward-thinking reforms all make India an extremely attractive place for foreign investors. There are several key benefits for doing business in India:

Engaged and career focused – On a social level, India is predominantly a collective society which places a huge emphasis on the group. However, in business culture individualism is becoming more common as employees are increasingly recognised, paid and promoted on an individual basis. Many Indians, especially those working in westernised offices or companies, are now turning their focus to their own career advancement and performance. Through training initiatives or certificate programmes Indians are constantly taking steps towards obtaining more knowledge and qualifications, which in turn helps international organisations doing business in India by providing a constant flow of highly engaged and career focused individuals.

Globe India i 200x300 Benefits of Doing Business in India

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High levels of English – The historical relationship between the UK and India means that Indians have a high level of English. Although the accent and vocabulary of Indian English is slightly different from that of British or American English, international organisations will benefit immensely from graduates’ ability to speak English fluently, as well as their command of the many local Indian languages. It is in fact estimated that there are 14 major and over 1000 minor languages and dialects spoken in India. The relatively few language barriers make doing business in India quite attractive for international organisations.

Large amount of experienced specialists – India has an extensive pool of experienced people from which they can recruit employees. There is a high value placed on education in Indian culture. Combined with India’s drive to become a successfully modernised and competitive country, this is helping to produce a population of candidates with good qualifications and specialised experience and knowledge.

Openness to new ideas and opportunities – Indians have a relatively high tolerance for ambiguity and uncertainty and can therefore be quite open to new ideas and opportunities. This entrepreneurial and creative spirit is evident in the recent influx of new businesses in India. International organisations doing business with Indians in urban centres such as Mumbai, Bangalore and Hyderabad will particularly benefit as many younger Indians are taking on more western habits and working preferences. As they increasingly adapt to keep pace with the demands and expectations of new dynamic industries, international organisations doing business in India will face fewer cultural challenges when pushing new business ideas and endeavours.

Dedicated employees – Indians have a strong work ethic and take pride in their jobs. They tend to work long hours in the hopes of showing their dedication and increasing their status in the company. Most Indians will work eight hour shifts six days a week. When working for organisations which require communication on a regular basis with people in countries such as the US or the UK, employees will willingly work shifts around the clock to compensate for the time difference. This group of highly dedicated employees, willing to work long shifts over unusual hours, is a huge benefit for international organisations doing business in India.

Business meeting track5 i 300x199 Benefits of Doing Business in India

© istockphoto.com/track5

All the above benefits are good reasons for global organisations to do business in India. Harnessing these benefits comes with the need to navigate the geographic, linguistic, religious and cultural diversity of Indian society. This requires a comprehensive understanding of Indian business and social culture on all levels.

International organisations employing people in India or working with Indians on a regular basis should therefore have a series of cross-cultural training programmes on Doing Business in India to ensure they develop the skills to successfully deal with the many cultural differences.

© Communicaid Group Ltd. 2010

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Mar 04

Cross Cultural Training for Business and Management

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Business relations are no longer limited by national borders. Individuals and organisations from different national cultures meet, compete and collaborate on a daily basis, making cross-cultural working and communication, whether virtual or face to face, an essential part of a company’s day to day business.

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© istockphoto.com/ neustockimages

However technically prepared, employees’ performances may suffer when working across cultures without adequate cross cultural skills which enable them to not only recognise cultural differences in working preferences and communication styles, but to also be able to deal with them. Such intercultural skills can be developed by participating in a series of cross cultural training programmes for business and management.

Cross-cultural training programmes provide both a foundation of intercultural awareness and an understanding of the impact of stereotypes and generalisations on business interactions, a lack of which can cause serious misunderstanding and financial risk when working internationally. Intercultural training also provides strategies to manage intercultural conflict and build cross-cultural relationships with greater success.

As quoted in the book Riding the Waves of Culture, “Culture still seems like a luxury item to most managers, a dish on the side. In fact, culture pervades and radiates meanings into every aspect of the enterprise. Culture patterns the whole field of business relationships.”

Cross cultural training is an integral step to ensuring international organisations harness the benefits of doing business in an intercultural context and reduce their risk of financial loss.

© Communicaid Group Ltd. 2010

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Mar 03

Benefits of Doing Business in Russia

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Russia is by far the largest country in the world. The country covers an area all the way from Europe in the West to North America in the East and bordering with Asia in the South, and boasts a vast geography that spans eleven time zones.

Russian building 2 Dmitry Mordvintsev i 425x283 Benefits of Doing Business in Russia

© istockphoto.com/Dmitry-Mordvintsev

 

Emerging as a diverse nation after a long and eventful history, Russia’s growing and strengthening consumer economy, with a market of over 140 million people, is evolving into a prime location for investment. Business opportunities can be found in many sectors of Russia’s economy and strong support exists for investors from both the government and the Foreign Investment Advisory Council (FIAC).

Doing business in Russia offers the following key benefits:

Stable and Growing Russian Economy
According to Invest in Russia, Russia boasts one of the most dynamically developing and attractive economies in the world. Since 1999, GDP growth has averaged 6.8% per year and reached 8.1% in 2007 (compared to 4-5% average world economic growth). Thanks to the strengthening rouble, in dollar terms the 1999-2007 GDP growth was an astounding 26% per year, far outstripping international growth rates.

Egalitarian Attitude
Russians generally subscribe to attitudes that promote equality, reciprocity and mutual advantage in business and a “deal” is often regarded as an opportunity for equally shared benefit. Personal relationships are also of great importance in Russia. When doing business in Russia it is worth investing time initially in creating strong bonds, as these are likely to form a solid basis for future business negotiations.

Large, Educated Consumer Market
There is untapped potential in Russia’s captive market of over 140 million people whose incomes are steadily improving. Additionally, Russia’s strong educational system has a good reputation for producing a highly skilled workforce and discerning consumers. The talent of the Russian people is starkly evident in the achievements of Russian art, music, literature and architecture.

Unique Geographical Location
Russia’s massive geographical presence spans a distance unmatched by any other single country. Linking Europe with Asia and bordering the North American continent, Russia has excellent access to sea, road and rail routes and is home to several major airports. Russia’s location is further supplemented by its vast natural resources of mineral reserves, coal mines, natural gas and timber.

Unified employees
Russia is a predominantly collective society, with a communal spirit perhaps stemming from its history and climate. Russia’s severe winters and geographical conditions have meant that collaborating, rather than competing has been necessary for survival. This sense of co-operation and togetherness must be considered when doing business in Russia, especially when communicating with Russian counterparts. For example, it is important to remember to address the group rather than the individual.

International organisations can profit immensely from the above benefits of doing business in Russia. Utilising these benefits comes with the necessity to create effective strategies for navigating the geographic, political and cultural diversity of Russian society. This requires a comprehensive understanding of Russian business and social culture on all levels.

International organisations employing people in Russia or doing business with Russia on a regular basis should therefore participate in cross-cultural training programmes for business and management such as Doing Business in Russia to ensure they develop the skills to successfully deal with the many cultural differences in working preferences, values and communication styles.

© Communicaid Group Ltd. 2010

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Mar 03

Cross Cultural Training for Relocation

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Cross cultural training is extremely important for employees being relocated to another country. Intercultural training programmes for relocation provide the cultural preparation and strategies without which international assignees and their family members could struggle when adapting to life and work in the target country.

The intense cultural transition that follows being relocated to a foreign country can, without adequate preparation, result in significant culture shock. Instead of hitting the ground running, employees may struggle to integrate into their new environment and be unable to effectively cope with their new international assignment. This leads to potentially huge costs for the organisation and a negative impact both on the employee’s emotional resilience and ability to perform well in the future.

iStock 000007068543Medium 300x199 Cross Cultural Training for Relocation

© istockphoto.com/ Neustockimages

In the 2008 Global Relocation Trends Survey Report conducted by GMAC respondents rated cross cultural training for relocation as the third most important initiative to increase ROI of international assignments, claiming that “cross-cultural preparation has a direct impact on the financial success of a relocation/assignment”.

Cross-cultural training for relocation programme such as Living and Working in Japan can significantly reduce the risk of international assignments by providing international assignees with the intercultural knowledge and skills required to be successful when working across cultures.

Despite this, many companies still fail to make cross-cultural training for relocation programmes mandatory and therefore risk huge financial loss from early returns or damage to relationships with international counterparts through cultural faux-pas and misunderstandings.

© Communicaid Group Ltd. 2010

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Mar 02

Importance of Cultural Awareness Skills for an International Workforce

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The truly global dimension of the twenty-first century’s economy has redefined the playing field on which international companies compete. The ability to offer the right products and services in the right markets at the right prices is no longer the sole factor of success.

Having the right people with a high level of cultural awareness and intercultural competence is now key when working across borders and cultures. Rating cultural awareness as an optional skill can come at a cost for a company working globally. Cultural awareness is essential for all employees working across cultures.

Globe in hands Guillermo Perales Gonzalez i 199x300 Importance of Cultural Awareness Skills for an International Workforce

© istockphoto.com/Guillermo Perales Gonzalez

Cultural awareness is a skill that can be developed at both professional and social levels, and can make an overseas assignment, an international business meeting or cross-cultural negotiation a successful one. On the other hand, a lack of cultural awareness can lead to major miscommunication, and, ultimately, rejection by host-culture colleagues, clients, acquaintances and neighbours.

Arguably an asset for any major international employee, cultural awareness is particularly important for employees being sent abroad to live and work, organisations planning to merge with or acquire another company or individuals who work with counterparts and clients around the world.

Cross-cultural training programmes can ensure your employees are equipped with a set of skills and strategies to be successful when working across cultures. International assignees moving to another country might benefit from a Living and Working in cross-cultural relocation programme, whereas someone Doing business in another culture could benefit from a country-specific cross-cultural training programme for Business and Management.

By providing your employees with opportunities to participate in a cross-cultural training programme, you will increase their cultural awareness which will help them avoid the risk of major miscommunication or international failure.

© Communicaid Group Ltd. 2010

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Nov 30

International Mergers and Acquisitions – Obstacles and Opportunities

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector No Comments »

The last decades have seen tremendous change in a multitude of aspects affecting the way we live and work. The ‘global village’ is moving closer and closer together. Organisations are no longer restricted by national borders in their operations. New opportunities for international business operations arise constantly and are enforced by the ever-improving information technology sector.

Cross-cultural mergers and acquisitions are common and often used to acquire more efficient access to resources and human capital, to expand markets and to create new ones. Due to promising predictions, as well as a considerable amount of time and money spent on legal and administrative issues, potential difficulties deriving from cross-cultural differences and hidden cultural rules are often neglected. These can have a tremendous impact on the international workforce and global business operations if not addressed in the early stages.

It is estimated that between 60% and 80% of cross-cultural mergers fail (Industrial Management, 2000) and in fact, cultural factors and the lack of preparation for them are often listed as key reasons for international M&A failures.

Obstacles for international M&As in the cultural field include differing values, attitudes and behaviour between the home and the host culture which can cause misunderstandings, client and employee dissatisfaction, increasing opportunity costs, direct financial losses and potential business failure. Intercultural competence developed through cross-cultural training programmes is therefore an essential success factor in today’s business world.

All of the parties involved, including management, employees and contractors on all levels, need to recognise the significance and impact of underlying cross-cultural values and attitudes in different cultures. This involves the understanding of different cross-cultural decision-making styles, perceptions of hierarchy, attitudes to polychronic or monochronic time as well as different communication styles such as high and low context.

Cross-cultural training programmes such as Communicaid’s Managing International Mergers and Acquisitions programme is essential to ensure that cross-cultural difference does not attribute to what is already very challenging.

© Communicaid Group Ltd. 2009

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Nov 30

Proxemics – Cross-Cultural Concept of Space

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The concept of proxemics refers to different perceptions people have regarding physical space. The space between people or where things are positioned in a room have different meanings to people from different cultures and can affect international business and communication.

Edward T. Hall, one of the founding fathers of intercultural communication, categorised the space surrounding people into personal space, social space and public space. Personal space refers to the ‘bubble’ surrounding a person which can only be entered by friends or close family members. In contrast, a person’s public space is usually reserved for more impersonal and anonymous interactions. The layer of space between an individual’s personal and public space is often called social space. This is the physical space where everyday contact takes place such as on a crowded train or bus.

Every culture has a set of hidden cultural rules concerning the physical space – or proxemics - between people when communicating. Breaking any of these rules could be interpreted as impolite or even threatening.

Cross-cultural training programmes such as Doing Business in Spain will give you a better understanding of the concept of proxemics and of the reasons why someone from Spain might perceive their North American counterparts as being rude when they recoil from close physical proximity.

Understanding concepts such as proxemics through participating in cross-cultural training will help to avoid cultural faux-pas based on different perceptions of space.

© Communicaid Group Ltd. 2009

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Nov 30

Importance of Cross-Cultural Training

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector No Comments »

Today’s world is characterised by globalisation, ever-improving information and transportation systems, multicultural communities and workplaces, as well as changing political systems. The process of globalisation facilitates operations across cultures. However, it also creates new obstacles that international companies have to deal with in order to be successful. The amount of cross-cultural interaction, loaded as it is with potential difficulties rooted in cultural differences, grows steadily in frequency and intensity, bringing about the necessity of cross-cultural training.

Doing business in a cross-cultural environment requires an in-depth understanding of and clear communication with people from a variety of cultural backgrounds and nationalities and makes cross-cultural training essential in order to maximise positive outcomes of intercultural interactions and to reduce potential cultural faux-pas.

Different verbal and non-verbal communication styles can cause misunderstandings and frustrations that can potentially affect international business relationships and cause a decrease in productivity and efficiency due to the lack of knowledge or appreciation of cultural differences.

Problems in communication may arise from the obvious linguistic differences, but also from the often less apparent differences in cultural values which are often unconsciously embedded in people’s behaviour. Being aware of your own values and the impact they have on how you behave and are perceived is essential for anyone working in international organisations.

Cross-cultural training programmes such as Communicating Effectively across Cultures helps you understand your own values as well as those of other cultures through a combination of trainer-led discussion, group activities and self-assessments. The insight gained from cross-cultural training will help you start to build intercultural competence which is essential in international business.

© Communicaid Group Ltd. 2009

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