Mind the Cultural Gap
- a webinar delivered by proacteur
WEBINAR
Agenda
WHAT IS CULTURE? BENEFIT FROM
CULTURAL INSIGHTS
PROCULTURE©A PRACTICAL
APPLICATION FOR CULTURAL INSIGHTS
CHANGING A CULTURE FIVE CRITICAL
ELEMENTS TO KEEP IN MIND
BehaviourWhat is culture?
Behaviour and artefacts
Value and strategies
Behaviour
Culture is relevant when interacting
Behaviour
and when merging
Relevance in a larger perspective
Working relationships - when we collaborate
Company growth – when we expand and change
What we gain from cultural insight
Better management of organisational development as understanding cultural element leads to moresuitable choices (process optimisation, strategies or perhaps technologies).
Levering the strengths of diversity by having insight and a language to address culture.
Gaining a more potentcompany cultureresults in better talent management, recruitment and retention. And leaves a stronger impression with stakeholders.
Cultural knowledge is an undeniable competitiveadvantage that directly influence potential market growth, productivity, and quality.
Degree to which power is distributed with people at the
bottom accepting their position
POWER DISTANCE
Degree to which people function more as individuals or a collective
community.
INDIVIDUALISM
Degree of tolerance for ambiguity and uncertainty.
UNCERTAINTY AVOIDANCE
Degree to the level of focus on performance and continuous improvement.
PERFORMANCE ORIENTATION
ASSERTIVENESS
EMOTIONAL EXPRESSIVENESS
Degree to which people are allowed and expected to display emotional states.
Degree to which a person is able and expected to advocate own personal well-being and goals.
proCulture©’s six dimensions
Relevant cultural dimensions
Cultural markers: The synthesis of 1-2-3
2 sub-categories
1 dimension
3 aspects
= 12 sub-categories
= 6 dimensions
= 36 aspects
Data collection
Step 1 Step 2 Step 3
Quantitative data collection Qualitative data collection Validating data
Cultural alignment
Cultural CMCultural intelligence
Cultural integration
Fundamental basis for
alignment of organisational
cultures and ensuring
compatibility between
culture and company
values or strategy.
Fundamental basis for
inclusion of cultural elements
in due diligence process or
integration strategy of
mergers & acquisitions.
Provides valuable input to
strategy for intercultural
change implementations to
ensure cultural specific needs
are included.
Harvest the benefits of
cultural diversity and
improvement of intercultural
collaboration.
Cultural CM
Degree to which power is distributed with people at the bottom accepting
their position
POWER DISTANCE
Degree to which people function more as individuals or a collective community.
INDIVIDUALISM
Degree of tolerance for ambiguity and uncertainty.
UNCERTAINTY AVOIDANCE
Degree to the level of focus on performance and continuous improvement.
PERFORMANCE ORIENTATION
ASSERTIVENESS
EMOTIONAL EXPRESSIVENESS
Degree to which people are allowed and expected to display emotional states.
Degree to which a person is able and expected to advocate own personal well-being and goals.
proCulture©’s cultural markers
Degree to which a person is able and expected to advocate own personal well-being and goals.
Affects Change management effort in regard to:
• Communications• Resistance• Feedback• Sponsorship• Approach
Degree to which a person is able and expected to advocate own personal well-being and goals.
Affects Change management effort in regards to:
• Communications• Resistance• Feedback• Sponsorship• Approach
Degree to the level of focus on performance and continuous improvement.
Affects Change management effort in regards to:
• Communications• Accountability• Performance and adoption metrics• Incentives and desire building• Resistance management
Degree to which people are allowed and expected to display emotional states.
Affects Change management effort in regards to:
• Communications• Engagement with managers• Avoidance behavior• Identifying resistance• Responsiveness to concerns
Degree of tolerance for ambiguity and uncertainty.
Affects Change management effort in regards to:
• Communication• Resistance• Change fatigue and pace of change• Confusion• Coaching and training• Mitigate risk
Degree to which power is distributed with people at the bottom accepting their position.
Affects Change management effort in regards to:
• Communications• Resistance• Productivity impact• Change management plans• Buy-in• Decision making
Degree to which people function more as individuals or a collective community.
Affects Change management effort in regards to:
• Communication• Buy-in• Teamwork and collaboration• Cross-functional work• Decision making• Feedback
Cultural change management process
Mapping cultural traits
Affect on CM activities
Unique challenges and adaptations
Include insight to CM strategy or CMO
frameworkWHAT (findings) SO WHAT (implications) NOW WHAT (actions)
Cultural alignment
Cultural CMCultural intelligence
Cultural integration
Fundamental basis for
alignment of organisational
cultures and ensuring
compatibility between
culture and company
values or strategy.
Fundamental basis for
inclusion of cultural elements
in due diligence process or
integration strategy of
mergers & acquisitions.
Provides valuable input to
strategy for intercultural
change implementations to
ensure cultural specific needs
are included.
Harvest the benefits of
cultural diversity and
improvement of intercultural
collaboration.
Cultural alignment
Cultural alignment process
Understanding our culture
Deep dive into sub-cultures
Values or strategic ambition
Recommendation for adaptations
WHAT (findings) SO WHAT (implications) NOW WHAT (actions)
Cultural alignment
Cultural CMCultural intelligence
Cultural integration
Fundamental basis for
alignment of organisational
cultures and ensuring
compatibility between
culture and company
values or strategy.
Fundamental basis for
inclusion of cultural elements
in due diligence process or
integration strategy of
mergers & acquisitions.
Provides valuable input to
strategy for intercultural
change implementations to
ensure cultural specific needs
are included.
Harvest the benefits of
cultural diversity and
improvement of intercultural
collaboration.
Cultural intelligence
Understanding our international workforceIN
DIV
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53 4Moderately low Moderately high HighLow
53 4Moderately low Moderately high HighLow
53 4Moderately low Moderately high HighLow
42 3Low Moderately low
…or, 1:1 cross-cultural stakeholdersIN
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53 4Moderately low Moderately high HighLow
53 4Moderately low Moderately high HighLow
53 4Moderately low Moderately high HighLow
42 3Low Moderately low
Differences are usually what we notice, but we don’t just differ from someone…
IN
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53 4Moderately low Moderately high High
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53 4Moderately low Moderately high HighLow
53 4Moderately low Moderately high HighLow
53 4Moderately low Moderately high HighLow
42 3Low Moderately low
IN
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53 4Moderately low Moderately high High
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53 4Moderately low Moderately high HighLow
53 4Moderately low Moderately high HighLow
53 4Moderately low Moderately high HighLow
53 4Moderately low Moderately high HighLow
42 3Low Moderately low
… and the similarities are our common ground
Guess a workforce nationality
• Busy, stressed• Serious• Reserved• Cautious• Controlled
Guess a workforce nationality
• Busy, stressed• Serious• Reserved• Cautious• Controlled
• Relaxed • Friendly, outgoing• Spontaneous• Emotional• Impulsive
Brasilians about Americans: Japanese about Americans:
53 4Moderately low Moderately high HighLow
Cultural intelligence process
Understanding culture
Dialogue on perception vs. data
Guidelines for intercultural collaboration
WHAT (findings) SO WHAT (implications) NOW WHAT (actions)
Mapping cultural traits
Cultural alignment
Cultural CMCultural intelligence
Cultural integration
Fundamental basis for
alignment of organisational
cultures and ensuring
compatibility between
culture and company
values or strategy.
Fundamental basis for
inclusion of cultural elements
in due diligence process or
integration strategy of
mergers & acquisitions.
Provides valuable input to
strategy for intercultural
change implementations to
ensure cultural specific needs
are included.
Harvest the benefits of
cultural diversity and
improvement of intercultural
collaboration.
Cultural integration
Missing in Due DiligenceMost due diligences are incomplete and lack the full picture of many of the elements, especially:
ITFinances
Processes Customers
Legal Products
CultureOrganisation leadership &
talent
Neglecting culture means ITFinances
Processes Customers
Legal Products
CultureOrganisation leadership &
talent
The price is often wrong
The integration process takes
longer
The synergies are not realised
AOL-TimeWarner mergerYear 2000 Condition Should create the world’s largest media
company (values at $350 billion) Price $165 billion (the world’s largest deal at
the time)Outcome AOL was sold in 2015 for $4.4 billion
“Steve Case also explained that while the dot-com crash was devastating for internet companies, a bigger problem was the culture clash between the two companies, where AOL's side found Time Warner to be too old-fashioned, essentially, and Time Warner's side found AOL to be a threat to their businesses.”
“Merging the cultures of the combined companies was problematic from the get go. Certainly the lawyers and professionals involved with the merger did the conventional due diligence on the numbers. What also needed to happen, and evidently didn’t, was due diligence on the culture. The aggressive and, many said, arrogant AOL people “horrified” the more staid and corporate Time Warner side. Cooperation and promised synergies failed to materialize as mutual disrespect came to color their relationships.”
“Steve Case says that while the dot.com bubble bursting may have added to demise of the venture, he believes that the core reason goes back to the three P's: there was a culture clash between the two companies; the passion that pushed AOL forward diminished; and people wanted a quick fix to profit loss and didn't persevere.”
"We obviously overestimated the potential of synergies“Dieter Zetsche, CEO of DaimlerChrysler
“How do you pronounce DaimlerChrysler?… ‘Daimler’— the ‘Chrysler’ is silent.” Internal joke at Chrysler
Daimler-Chrysler mergerYear 1998 Condition Merger of equalsPrice $75 billion (the world’s largest cross-
border deal)Outcome 2007: Daimler sells Chrysler for ($6
billion)
Cultural integration analysis
Analysis of both cultures
Gap-fit analysis
Prioritisation of effort
Aspiration alignment with executives
WHAT (findings) SO WHAT (implications) NOW WHAT (actions)
Cultural alignment
Cultural change management
Cultural intelligence
Cultural integration
Changing a culture requires five critical elements
Executive leadership own the cultural change
How to?
Executives do not dictate or shape the culture on their own, but they need to own and drive the effort to change it.
Changing a culture is a change management project. And, according to Best Practice guidelines, the number one success criteria is active and visible sponsorship.
A. Executives participate visibly throughout the project by supporting the team and to champion the change.
B. Executives need to build a coalition of sponsorship and thereby bridging internal silos and creating a combined effort.
C. Executives need to communicate support and promote the change to all impacted groups across the organisation.
Align strategy and organisational culture
How to?
Organisations work best if there is alignment between strategy and culture. If an organisation wants to change its culture, it should therefore, be natural also to adjust its strategy as part of the process, as the two affect each other.
A. Ensure that budgets, goals, metrics, processes, reporting structure, performance management system, leadership training and incentives should also reflect the desired culture.
Change the stories and walk-the-talk
How to?
Both formal and informal storytelling are tremendously powerful. People are under the conception that we say what we believe, but the reality is that we also believe what we say – eventually at least. Changing the stories, therefore, contributes to changing the culture.
A. Identify core influencers in the organisation – both formal and informal and prepare them to walk the talk.
B. Both formal and informal leaders should be aware of how stories convey the culture. Not merely in what we say but also how they are linked to e.g. reward systems and which metaphors we choose.
C. Ensure that the strongest messages are told the same way across the org.
Prioritise few critical values and behaviours
How to?
Changing a culture may require a multitude of large programs, but an alternative way is to focus on a few critical behaviours, which you believe is important to get right. They can be used as levers for the overall cultural change. When a few key behaviours are emphasised heavily employees will often develop additional ways to reinforce them.
A. Use the strengths already existing in your culture. One way of identifying strengths in the culture is to find the areas with the lowest variance in views. These are our strongest cultural traits.
B. The critical behaviours should be systematically reinforced. identify important areas where culture is manifested, for examples such as performance management, annual budgets or Town Hall Meetings.
Monitor the progress and identify KPIs for success
How to?
By having data on the current state of culture we can track the transition to the future state. When focusing on a few elements of a culture, other elements should still be monitored as many of the cultural aspects are interlinked and will be impacted by spill over. Also, know that cultural changes takes time.
A. Know your starting point and define the desired culture.
B. Identify different metrics which show whether the activities supporting the cultural change are having the desired effect
C. Different types of data can be used depending on which kind of cultural aspects are being changed and whether we are looking at short or longer term progress.
Would you like to read more about how to address
culture?
Visit proacteur.com/inspiration/white-papers/
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