Why is cross-cultural leadership getting so much attention? Why is it important for today’s leaders to develop their cross-cultural effectiveness?

Let me tell you a story.  It starts on a hot summer day in 2001 when the managing director of a family-owned company – let’s call him Paul – arrived in Hong Kong, flanked by his best lawyers.

He had worked with a Chinese partner firm for more than 30 years, much to his satisfaction, and now he had the opportunity to buy 25 percent of its shares. ‘We should set up a joint venture’, his lawyers had advised him, and Paul had rubbed his hands together with delight.  He knew it was a brilliant business opportunity.

When he walked into the room where the joint venture talks were scheduled to take place, Paul frowned his eyes in disbelief.  He had brought five of his own legal staff and hired…