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FONS TROMPENAARSLisbon, 28 October 2014
Riding the Waves of CultureTaking advantage of challenging circumstances
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Your clients and partners
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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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Impa
ct
Time
RecognizeIncrease Awareness
RecognizeIncrease Awareness
RespectAppreciate
Cultural Differences
RespectAppreciate
Cultural Differences
ReconcileResolve
Cultural Differences
ReconcileResolve
Cultural Differences
Realize and RootImplement
Reconciling Actions
Realize and RootImplement
Reconciling Actions
This approach leads to concrete and measurable actions…
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“Innovative leaders have the propensity and
competence to help organizations and its teams
reconcile dilemmas for sustainable innovation”
Core Proposition
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Some hard evidence
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Source: 21 Leaders for the 21st Century p429
Correlation(Spearman’s coefficient of rank correlation)
Correlation between reconciliation and 360o feedback by peers and subordinates
0.71
Correlation between reconciliation and bottom line business performance in profit centre/budget stream
0.69
Our research reveals that the propensity to reconcile dilemmas correlates with bottom line business performance
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Explicit Culture
A model of culture
Implicit Culture
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01/ The Car Accident
What happens to your friend?
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01/ What right does your friend have?
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:
The top 2 of your corporate values are:
1. Integrity
2. We respect the cultures of others
INTEGRITY
Please discuss in the context of these values what your answer would be…
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01
02
03
04
05
06
07
Universalism versus Particularism
Individualism versus Communitarianism
Neutral versus Affective
Specific versus Diffuse
Achievement versus Ascription
Sequential versus Synchronic
Internal versus External Control
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• Consistency• Systems, standards &
rules • Uniform procedures• Demanding of clarity• Letter of the law
• Flexibility• Pragmatic • Make exceptions• “It depends”• At ease with ambiguity• Spirit of the law
01/ Universalism vs Particularism
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3237
4447
5464
6869
7383
87909191929393
97
0 20 40 60 80 100
VenezuelaKorea
RussiaChinaIndia
MexicoJapan
SingaporeFrance
Czech RepGermany
NetherlandsAustralia
United KingdomSweden
USACanada
Switzerland
Friend has no/some right and would not help
01/ Universalism
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Global Standards (Critical Mass)
Cultural Diversity (Differing solutions)
Globalism and Localism
01/ Dilemma
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Glo
bal c
entra
lized
Decentralized Local
Global Corporation
Multi-local Corporation
Globalization vs. Localism
International Corporation
Transcultural Corporation
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Impa
ct
Time
The Creative Individual
The Creative Individual
The Inventive TeamThe Inventive Team
The Innovative Organization
The Innovative Organization
01/ This approach assumes three connected stages…
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The CreativeIndividual
The CreativeIndividual
STAGE 1
Impa
ct
Time
01/ This approach assumes three connected stages…
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01/ Flaw: based only on linear scale models
IntuitivePerceivingThinkingExtrovertTortoise mindLateralRisk-takingHuntingIndividualisticRight brainEtc.
SensingJudgingFeeling
IntrovertHare brain
FocusedSecuring
GatheringConsensus seeking
Left brainEtc.
Creative people are more… Creative people are less…
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Kirton’s KAI linear model
But scoring on one implies less of the other
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Creativity
Adaptation
Innovation
Innovation = the reconciliation between creativity and adaptation
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I am efficient, thorough, adaptable, methodical,
organized, precise, reliable, and dependable
I am ingenious, original, independent, unconventional and unpredictable
Creativity
Adaptation
Innovation
Innovation = the reconciliation between creativity and adaptation
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I am efficient, thorough, adaptable, methodical,
organized, precise, reliable, and dependable
I am ingenious, original, independent, unconventional and unpredictable
I am continuously checking in an organized and
methodical manner whether my original
ideas do work in practice.
Creativity
Adaptation
Innovation
Innovation = the reconciliation between creativity and adaptation
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I am efficient, thorough, adaptable, methodical,
organized, precise, reliable, and dependable
I am ingenious, original, independent, unconventional and unpredictable
I am methodical and organized first to set the
basis to launch my unconventional ideas.
Creativity
Adaptation
Innovation
Innovation = the reconciliation between creativity and adaptation
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The Creative Individual
The Creative Individual
The Inventive TeamThe Inventive Team
STAGE 2
Impa
ct
Time
01/ This approach assumes three connected stages…
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Dilemma team roles
01/ Integrating Team Roles of Belbin
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01/ Example Belbin Team roles of participants
0 1 2 3 4 5 6 7
Shaper
Coordinator
Implementer
Resource Investigator
Team Worker
Monitor Evaluator
Plant
Specialist
Completer Finisher
Most like Least like
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The Particular Idea versus the Universal Evaluation
The Plant The Evaluator
01/ Belbin team role dilemma
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01/ Belbin Team roles
Particular Creative Ideas
Blue Sky
Realize ideas through critical
oxygen
Strangled at birth…
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The Creative Individual
The Creative Individual
The Inventive TeamThe Inventive Team
The Innovative Organization
The Innovative OrganizationIm
pact
Time
01/ This approach assumes three connected stages…
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01/ Corporate Culture
ORGANIZED CHAOSMBPLEARNING
NETWORKMBSPROMOTION/POWER
STRATEGYMBOPAY FOR PERFORMANCE
STRUCTUREMBJDEXPERTISE
Incubator Guided missile
Family Eiffel tower
Person oriented Task oriented
Hie
rarc
hica
lEg
alita
rian
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Four Corporate CulturesEgalitarian
Hierarchical
Person Task
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The infinity loop for innovationEgalitarian
Hierarchical
Person Task
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From Invention to Intention01
02
03
04
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From Invention to IntentionEgalitarian
Hierarchical
Person Task
WEAKNESS:ANARCHYCHAOS
INITIAL STRENGTHS:CREATIVEFLEXIBLE
INITIAL STRENGTHS:LOYALTY/COMMITMENTSTRONG LEADERSHIP
LEADERSHIP CRISIS
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01/ Stage 1 Dilemmas
1. Leading participating employees versus respect for authority
2. Team spirit versus individual creativity
3. Effectiveness of teams versus creation of cultural knowledge about these teams
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Universalism versus Particularism
Individualism versus Communitarianism
Neutral versus Affective
Specific versus Diffuse
Achievement versus Ascription
Sequential versus Synchronic
Internal versus External Control
01
02
03
04
05
06
07
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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.’
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
one’s life would improve as a result.’
02/ Individualism versus Communitarianism
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3032
3739
414142
445253
606161
636465
6769
7189
0 20 40 60 80 100
EgyptMexico
IndiaJapan
FranceChina
SingaporeIndonesia
ItalyGermany
RussiaSweden
UKAustralia
FinlandNetherlands
Czech RepublicUSA
CanadaIsrael
Percentage opting for individual freedom
02/ Individualism
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02/ Dilemma Reconciliation
Case Study:Individual Performance versus Team Spirit
The Individual and the Team
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02/ The Individual and the Team
Stimulate Team Co-operation
Reward Individual Performance
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Team Motivation
Indi
vidu
al M
otiv
atio
n02/ Dilemma Reconciliation
(1,10) Me, Myself and withholding Information
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Team Motivation
Indi
vidu
al M
otiv
atio
n02/ Dilemma Reconciliation
Team Mediocrity (10,1)
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Team Motivation
Indi
vidu
al M
otiv
atio
n02/ Dilemma Reconciliation
(5,5)
Go for the Small team
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Reward Teams for Individual Creativity (10,10)
AND
Reward Individuals
for Team Work
02/ Dilemma Reconciliation
Team Motivation
Indi
vidu
al M
otiv
atio
n
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1. Mass-Customization
2. Co- Opetition
3. Moment of Truth
4. It is Cool to be Emotional
5. Servant Leader
6. Just In Time Synchronizing Sequences
7. Pushing through the Pull
02/ Main Challenges
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From Intention to Invasion
01
02
03
04
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Task oriented
INITIAL STRENGTHS:LOYALTY/COMMITMENTSTRONG LEADERSHIP
WEAKNESS:COUNTRYCLUBCENTRALIZATION
INITIAL STRENGTHS:STRATEGIC
TASK ORIENTATEDCUSTOMER FOCUSED
CRISIS OF AUTONOMY
Egalitarian
Hierarchical
Person Task
From Intention to Invasion
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Stage 2 Dilemmas
1. Lord or servant ?
2. How do we centralise lessons reaching us from decentralised locations?
3. Concern with process versus concern with people
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01
02
03
04
05
06
07
Universalism versus Particularism
Individualism versus Communitarianism
Neutral versus Affective
Specific versus Diffuse
Achievement versus Ascription
Sequential versus Synchronic
Internal versus External Control
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05/ Achievement versus Ascription
STATUS ?
What You Do Who You Are
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• Family
• Age
• Gender
• Education
05/ Achievement versus Ascription
Aspects of ascribed status…
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‘The most important thing in life is to act as really
suits you, even if you don’t get things done’
05/ Achievement versus Ascription
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%
Percentage not agreeing with acting as really suits you
05/ Achievement versus Ascription
1524252627
2931
34343535
38393940
4243
5056
5759
0 20 40 60 80 100
EgyptCzech Republic
South KoreaArgentina
JapanRussia
SpainThe Netherlands
BelgiumFrance
SwitzerlandChinaIndiaItaly
BrazilGermany
IsraelUK
CanadaNorway
USA
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05/ Achievement versus Ascription
Attributed status by seniority or role
Perf
orm
ance
Sta
tus Lost democratic leadership
(1,10)
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05/ Achievement versus Ascription
Attributed status by seniority or role
(10,1)Follow the Leader
Perf
orm
ance
Sta
tus
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05/ Achievement versus Ascription
Attributed status by seniority or role
The Servant Leader
(10,10)
Perf
orm
ance
Sta
tus
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Servant or Leader ?
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1. Mass-Customization
2. Co- Opetition
3. Moment of Truth
4. It is Cool to be Emotional
5. Servant Leader
6. Just In Time Synchronizing Sequences
7. Pushing through the Pull
02/ Main Challenges
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From Invasion to Implementation
01
02
03
04
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Egalitarian
Hierarchical
Person Task
INITIAL STRENGTHS:STRATEGICCUSTOMER FOCUSED
WEAKNESS:SWEATSHOPSHORT TERMISM
INITIAL STRENGTHS:EFFICIENTSTRUCTURED
CRISIS OF CONTROL
From Invasion to Implementation
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01
02
03
04
05
06
07
Universalism versus Particularism
Individualism versus Communitarianism
Neutral versus Affective
Specific versus Diffuse
Achievement versus Ascription
Sequential versus Synchronic
Internal versus External Control
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04/ Specific versus Diffuse
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PUBLIC
PRIVATE
04/ Specific versus Diffuse
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04/ Specific versus Diffuse
Specific Relationship
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PUBLIC PRIVATE
04/ Specific versus Diffuse
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No Relationship
04/ Specific versus Diffuse
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PRIVATEPRIVATE
Diffuse Relationship
04/ Specific versus Diffuse
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04/ Specific versus Diffuse
Danger Zone
PRIVATE
PUBLIC
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04/ Specificity
The colleague argues:You don’t have to paint the house if you don’t 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 don’t feel like it, I will paint the house anyway. He is my boss and you cannot ignore it outside your work either.
A boss asking to paint his house
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324647
5258
656667
697071
7882
878889
9191
0 20 40 60 80 100
ChinaNigeriaKuwait
VenezuelaSingapore
KoreaBelgiumGreece
ThailandMexicoJapan
Czech RepublicUSA
CanadaUK
DenmarkNetherlands
Sweden
%
Would not paint the house
04/ Specificity
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Balanced Score Card Dilemma…
From the Balanced to the Integrated Score Card
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Specific Financial Performance
Diffuse Development of People
From the Balanced to the Integrated Score Card
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Spec
ific
finan
cial
per
form
ance
Interests in future innovating and learning
Cost cutting yourself
(1,10)
Subsidised seminar
(10,1)
Integrated growth:
Train for Cost Cutting
(10,10)
From the Balanced to the Integrated Score Card
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From Implementation to Innovation
01
02
03
04
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Egalitarian
Hierarchical
Person Task
INITIAL STRENGTHS:LEAN PROCESSESSTRUCTURED
WEAKNESS:BUREAUCRACYINFLEXIBLE
INITIAL STRENGTHS:CREATIVECLIENT IS KING
CRISIS OF RED TAPE
From Implementation to Innovation
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Universalism versus Particularism
Individualism versus Communitarianism
Neutral versus Affective
Specific versus Diffuse
Achievement versus Ascription
Sequential versus Synchronic
Internal versus External Control
01
02
03
04
05
06
07
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07/ Internal versus External Control
Internal ControlNature as a mechanismDominance over nature
External ControlNature as an organismSubjugation to nature
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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 controlover the direction my life is taking.
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What happens to me is my own doing
07/ Internal versus External Control
405152
616263
6469
737475757676777879
818586
89
0 20 40 60 80 100
NepalChina
RussiaSouth Korea
JapanCzech Republic
PortugalIndia
SwedenBelgium
ItalyGermany
The NetherlandsBrazil
FranceNorway
UKSpain
USACanada
New Zealand
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Balanced Score Card Dilemma…
From the Balanced to the Integrated Score Card
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Inner Directed Improvements in Business Processes
Outer directed increase in customer satisfaction
From the Balanced to the Integrated Score Card
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Inne
r dire
cted
impr
ovem
ents
Outer directed increase in customer satisfaction
Lean but mean
(1,10)
Customer’s creature
(10,1)
Integrated growth:
Pushing through the Pull(10,10)
From the Balanced to the Integrated Score Card
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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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Egalitarian
Hierarchical
Person Task
Exnovation!
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Task oriented
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Stage 5 Dilemmas
1. Internal versus external innovations
2. Investing in R&D efforts versus co-operating with rival companies
3. Hi-tech versus ‘hi-touch’ in virtual teams
4. Systemic versus modular innovation
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Hi-tech versus Hi-touch
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Stage 5 Dilemmas
1. Internal versus external innovations
2. Investing in R&D efforts versus co-operating with rival companies
3. Hi-tech versus ‘hi-touch’ in virtual teams
4. Systemic versus modular innovation
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Unco-ordinated supplyC
ontr
ollin
g sy
stem
ic in
nova
tion
Free flowing modular innovations
Innovation jealously guarded
Knowledge Broking
Knowledge Management
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INCLUSION
DIVERSITY
LEADERSHIP
INNOVATION
=
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QUESTIONS?
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