Going Global: International Expansion Strategies

I recently had the opportunity to co-facilitate a Kansas City International Trade Council workshop focused on global expansion with Dianne Hofner Saphiere (via Skype from Mexico) and Janet Graham, who is currently a Baker University adjunct professor of International Business, Marketing, and Economics. We had a diverse group of business professionals, university professors, independent consultants and college students who actively participated in the workshop held at the beautiful Kauffman Foundation facilities.

Janet Graham brought a wealth of knowledge, discussing the various entry strategies when considering expanding globally. Some key decisions organizations must make in order to form a clear market entry strategy that she referenced include: which market to enter, when to enter the market and on what scale, and which entry mode to use? Great questions to which she provided some resources (such as globaltrade.net, globalEDGE, and WorldoMeters) to help direct the decision-making process. She quoted a local business leader from Hill’s Pet Foods who said the countries in which they have been most successful they’ve had a dedicated local distributor who markets and sells their products – and the relationship is key!

We then got to have fun bringing culture into the picture! Dianne pointed out that culture touches all parts of the strategy – communication, negotiation, competitiveness – and will ultimately affect how successful your business can be at expanding globally. I had the opportunity to showcase the Cultural Detective Method with the group by working through a global expansion incident involving a local specialty beer manufacturer exporting to Canada. We ended with an activity that tied the learning together by incorporating Values Lenses into developing strategies for expansion. The workshop was quick and to the point but brought together some true experts in the field and real world application of the Cultural Detective tools to meet local business needs.

The International Trade Council of Greater Kansas City was a gracious host and sponsor for the global expansion workshop – have you checked within your local community to partner with such organizations? It’s a great way to link the cross-cultural skill development to relevant community and business needs!

Oldie but Goodie: Map of Key Cultural Differences

Intercultural communication is about how we can communicate effectively with one another. A frequent approach to improving intercultural communication is to develop our understanding of ourselves and of others. And probably the most common way of doing that is to teach about cultural differences, often referred to as the “dimensions of culture.”

There are many different versions of the dimensions of culture. I generally find them valuable as tools to help us compare cultures, or to cognitively learn about ourselves and others. And I also find they really limit us. While not intended this way, their use has a tendency to reify culture, to cause us to think about culture as a “thing” rather than a process. It’s why I’m such a fan of the Cultural Detective Worksheet: it’s a process for understanding self and others, for leveraging similarities and differences in order to collaborate in more innovative, rewarding, and satisfying ways.

Enough about that. This post is about cultural differences. In my training one of the ways I talk about cultural differences is to ask people to think of them as a map of the terrain, and to use them as a scanning tool. In a given interaction, which difference(s) got in the way? For example, was status important for her and not for me, and I just missed it? Was it a different sense of responsibility that really upset me? Maybe he likes to do several things at once, and I’m more one-thing-at-a-time? Was it the fact that I don’t think religion belongs in the workplace that caused him to think I’m not trustworthy?

That is how the map above came to be. It is a graphic summary of some of the cultural differences or dimensions, at least as I saw them back in 2008. It is available for you to use freely under a Creative Commons license. You can introduce the various cultural differences to your team and then, when you get mired in cross-cultural miscommunication, you can take out your map of differences and decipher just which dimension might be causing the problem. Or, maybe it’s something not even on the map.

Just click on the link above for a larger image, and to download the accompanying 11-page article entitled, “Detecting the Culprits of Miscommunication: Values, Actions and Beliefs.” Please feel free to copy and distribute, as long as you retain the copyright and source url.

I’m really interested to hear from you about how you use the dimensions of culture to promote effective interaction. What are your tools and techniques? Your dos and don’ts? And what do you think about this “map of the culprits of miscommunication” idea?

“Most Multicultural Teams are Dominated by One Cultural Group”

Or so claims Jeanne Brett in a recent Harvard Business Review blog post. I will agree that most of the multicultural teams I’ve worked with over the past 28 years have been dominated by a sub-group of members. My guess is that’s the same for most teams, no matter the visible diversity of their composition.

This idea caught my attention, and I also really liked that rather than the usual analogy of talking about multicultural teams as symphony orchestras or likening them to herding cats, Jeanne relates multicultural teams to fusion cuisine. And who doesn’t like fusion cuisine? Way to sell multiculturalism!

“It turns out that fusion teams often … break a large team into smaller subgroups, encourage informal conversations, and thereby get input from previously quiet team members. Eventually, the subparts have to be integrated back into a whole; this turns out to be less of a problem than you’d think. In the teams we studied, the trust and respect generated within the subgroups made it reasonably easy to facilitate collaboration in the larger group.”

Another of Jeanne’s points very much echoes what the six expert, globally dispersed authors of Cultural Detective Global Teamwork have to say. Many of you know what a dynamite package that is and, if you don’t, please be sure to check it out! To quote Jeanne’s post:

“We’ve come across team leaders who achieve the same result (getting the most out of all cultural subgroups) by carefully establishing team norms at the start of a project. For example, we know of one manager who was leading an English-language software-development project; English was not his first language. In fact, his English was strongly accented. When he met with the team for the first time, he told them, ‘You’ve probably noticed I have an accent. If I could get rid of it, I’d be happy to do so, but since I cannot, we’re going to have to communicate … regardless of my accent or for that matter yours. If you do not understand me, or one another, whether it’s because of accent or anything else, we need to communicate until we do understand.'”

What do you think? In what ways are multicultural teams like fusion cuisine? What are some of your tried-and-true best practices for multicultural teamwork?

Why is Intercultural Competence Helpful? The Case of the Ion Exchange Resins

Is there a bottom-line business benefit to intercultural competence? As someone who has lived and breathed cross-cultural and intercultural business competency for well over thirty years, that question tends to elicit a chuckle in me. And today, the person on the phone who asked me that question reminded me of a story.

You see, just yesterday I received an invitation to an “OB-OL-kai” in Japan, a “get together of Old Boys and Old Ladies,” a reunion of a group of colleagues that I miss terribly and would love to party with, again, face to face. We went through a lot together. They are some of the most talented professionals I’ve had the pleasure of working with in my career. And a few members of that group were involved in the story I’m about to tell you:

Cultural Detective and the Case of the Ion Exchange Resins

We worked for a multinational business that globally sourced ion exchange resins. IERs are small beads used to separate, purify or decontaminate; they are used to make ultra-pure water, for example. Don’t worry about the technicalities; this story focuses on how the people worked together.

In this case, the IERs were produced in southern France, at a facility that was one of the absolute best in the world. My client imported the IERs to Japan, selling them primarily to the semiconductor manufacturing industry.

The Japanese customers had extremely high quality standards, and the French-produced IERs consistently met all the customer’s requirements. The product was well within spec. But, the Japanese customers were worried: occasionally the IERs they received from France would vary slightly in color. One shipment might arrive quite clear, the next shipment more yellow or orange. Always the specifications were met. The IERs functioned to their purpose. But the color varied.

“The color doesn’t matter,” the French vendor explained. “The color has absolutely no impact on the performance of the IER.”

“Yes, that is true. We understand that color does not affect performance,” came the reply from the Japanese customer. “But we are concerned about why there is a color variation? We feel it must indicate a variance in the production process itself. There must be some variable in production that is not consistent and could be improved.”

A classic cultural gap: a focus on result vs. a focus on process. Does the product perform as required? Or do we look at continuous improvement of the production process itself?

In this case, the argument could quickly produce a stalemate, with both supplier and customer insisting their view is “correct.” The French could insist that their IERs are the best the customer will find. As long as the customer doesn’t find an equivalent product, that could be ok. But, it’s not a very good answer on a global stage, where there always seems to be another supplier waiting in the wings, with cheaper cost, easier shipping, or more commitment to listening to the customer.

Possible results of the vendor insisting that color doesn’t matter?
  • Lost customer (and this was a lengthy and very lucrative relationship),
  • Lost business/profit/cash flow,
  • Lost investment in developing this customer,
  • Huge reinvestment to develop a new customer of the same caliber,
  • Loss of opportunity to improve their product and their production process,
  • Not to mention the human aggravation.

The Japanese, in turn, could blame the supplier. “They are not committed to being the best they can be. They are resting on their laurels, on their prior success. We need suppliers who strive to maintain their leading edge. We need a supplier who listens to us and respects us.”

Possible results of the customer insisting color variation matters?
  • Diminishing trust of, communication and collaboration with the vendor, leading to
  • Loss of a strategic vendor,
  • Loss of the investment in selecting and developing the vendor,
  • Huge reinvestment to source and develop a new vendor,
  • Major time and financial commitment to establishing a relationship and educating a new vendor regarding customer needs, in hopes that the new relationship might become a strategic partnership.

I have seen this push-pull occur so often in my career. It frustrates those involved, it causes aggravation, it wastes time, and it wastes money. Take a moment to put some money to the points above, to calculate the “bottom-line impact” of such a simple cross-communication. In this industry, it is easily in the millions of dollars. And why? Due to pride, to arrogance, but mostly due to ignorance: not really understanding cultural differences and how to navigate them effectively.

And what might an interculturally competent solution look like? We know it involves multi-directional bridging, and systemic as well as interpersonal solutions. And, usually, such interculturally competent solutions are win-wins for both customer and supplier.

How so? Well, the vendor could listen to the customer, learn from the customer, even though the customer’s points don’t pertain directly to the product performance. In this way, the vendor would:
  • Strengthen trust and teamwork with the Japanese customer,
  • Could very well improve the quality of its manufacturing process, which in turn
  • Could help ensure it remains best-in class.
  • The customer will refer more customers to the vendor, due to the strong relationship with and excellent quality of the vendor, and the vendor’s global markets will grow.
In turn, the customer could voice its praise for the vendor’s quality, and explain that it’s intentions are collaborative and collegial; to help both vendor and customer be the best they can be. The customer could apologize for the hassle, and offer its process expertise to the vendor. In this way, the customer would:
  • Strengthen a very lengthy and very strategic vendor relationship,
  • Improve the cross-cultural skills of its staff, enabling them to partner more effectively with other vendors,
  • Improve the customer’s reputation in the global marketplace, as one of collaboration and loyalty.

Thus, the French and Japanese could work together to manufacture more color-consistent IERs, grow their global markets, strengthen their partnership, improve their employees’  skills, and polish their reputations in the marketplace. Win-win-win.

In real life, what actually happened was somewhere in between. These people were smart enough to hire a full-time intercultural consultant, after all, which I believe is one demonstration of their commitment to success. They got advice, and they did their best to put it to good use. They realized that intercultural competence is a lifelong process, contextually based, and strived to always do a bit better. It’s one of the reasons I want to travel halfway around the world to go to that OB-OL-kai!

What do you think? I would love you to share with us why you believe intercultural competence is helpful? Do you have a Cultural Defective or Cultural Effective case to share?

The Connection between Creativity and Intercultural Competence

If I were to ask you what it takes to be effective across cultures, what comes to mind? If you are anything like me, then you have probably started to rattle off some of the classics: self-awareness, open-mindedness, curiosity, flexibility—maybe communication skills. All important.

But where is creativity in this picture? And why isn’t it closer to the top of the list when it comes to what it takes to be effective when working across cultures?

You could argue that creativity is an output of some of the above: if you are open-minded, curious, and flexible, you are likely to be able to be more creative, which will help you to be more effective. But I think it’s worth highlighting the importance of creativity as a stand-alone competency for working across cultures—especially when it comes not just to being aware of cultural differences, but being able to develop effective bridging solutions to differences you may experience.

Take Morfie, our newly named CD animal mascot, as an example. Sure, he may be curious as he scuttles across the ocean floor, but what makes him effective is his creative problem-solving in the face of challenging situations: his ability to morph himself into another sea-creature to ward off danger.

The importance of creativity is something I learned the hard way. When I first moved to Japan, I moved into an apartment subsidized by the company I was working for. There were all kinds of problems with the apartment when I arrived (for example, the heating was broken and it was the middle of winter in Sapporo—yes, the same location as the Winter Olympics in 1972). What would you do in this situation?

My initial instinct was to take a more ‘American’ approach—to take my contract in to my employer, highlight the conditions outlined in the contract that had not been met, and ask for these to be amended. But I wasn’t in the US. I was in Japan, a more relationship-focused and indirect culture. Surely going in and making these kinds of demands and pointing to a contract would not exactly start me off on the right foot with my employer, I thought.

So instead, I tried a more indirect approach. When they asked me how things were in the apartment, I remember trying to be subtle about naming some of the problems. I think at one juncture I might have even said something like, “This is the first time I’ve lived in an apartment where frost and ice forms on the insides of windows.” I kid you not. This raises a whole other topic of the ineffectiveness that can often happen when more direct speakers try to be more indirect.

The point of that story, beyond revealing how much I had to learn about Japanese culture when I arrived, was that I was far from creative in my solving of that situation. In my mind, I had two options: take the American approach, or take the Japanese approach (at least my limited understanding of it at that juncture). Be direct or indirect. It was bifurcated, dichotomized, overly simplified, and therefore ineffective.
  • What if I had invited some of my colleagues over to my apartment for a meal, during which they could have experienced the issues first-hand?
  • What if I had asked a colleague for a recommendation for a repair service? Or even asked them to call a repair company for me, since I had yet to learn the Japanese word for moldy?
  • What if I had written to the American colleague whose role I was taking over and asked him what he would do in this situation?

The point being, I could have and should have considered a lot more creative solutions here, but simply didn’t. And that’s really the point. Often when we are working across cultures, we stop at the first, most obvious answer, and that’s a limitation.

The good news is that my little housing adventure in Japan likely has helped me to become more creative—and it certainly proved the need for me to do so. Interestingly, recent research at Northwestern University in the US and INSEAD in France has highlighted that individuals who have lived abroad often demonstrate higher levels of creativity on classic ‘creative problem solving’ tasks.

That said, waiting until you are stuck in challenging intercultural dilemmas to flex your creativity muscles—or relying solely on living abroad to develop the muscle, doesn’t seem the right answer. It’s the kind of thing that you want to have so ingrained in you, that when you are faced with a tough situation, you naturally think through a number of different possibilities. In essence, it’s about learning to be Morfie-like, to be able to quickly run through a rolodex of possible options as to how to transform yourself effectively in those situations—and to continually be expanding your repertoire of possible options.

Developing your creative problem-solving skills is one of four main competencies we focus on in the newly released Cultural Detective Bridging Cultures for that reason. In the package, we go through a series of exercises that help people to expand their solution space—to really get beyond solutions of the generic, ‘he should get cross-cultural training, she should take the other person out to dinner’ nature. In an earlier post I shared with you an exercise to get started.

One really useful technique that we practice in the package comes from the work of Michael Michalko, a pioneer in creativity. It’s called challenging assumptions. The process is simple. When you are faced with a challenging situation, you name all the assumptions you are making about those situations and challenge those assumptions. The premise is that often the way we frame a problem limits the potential solutions to it.

If we go back to my Japan example, I made a lot of assumptions:
  • that I couldn’t take a typically American approach (yet my colleagues were very accustomed to working with US Americans)
  • that my colleagues were typically Japanese (they may have been attracted to the company I was working with very specifically because it wasn’t typically Japanese)
  • that the solution lied in me adjusting the way I communicated, from a more direct to indirect style (versus, for example, emphasizing another shared value we had), etc.

Challenging even just one of the assumptions would have opened up a lot of other options for me to effectively address this situation.

The experience I had in Japan was ten years ago now, but the lesson it taught me about the importance of creativity is invaluable. I now adopt a number of different creativity techniques regularly in my work. Beyond challenging assumptions, I also regularly change my physical location to prompt me to think about things differently, and I use techniques like thinking through analogies and wearing the hat of the other individual to help me identify more creative and effective solutions.

I would love to hear your experiences with creativity as they relate to intercultural problem solving: whether you’ve experienced situations similar to mine in Japan where it would have served you to be more creative; whether you’ve found other techniques that have helped you to continue to develop truly innovative intercultural solutions; even whether I should challenge the assumption I now have that creativity is a powerful, often overlooked skill in intercultural problem solving.

Global Competitiveness Events in Bogotá Colombia

Cultural Detective is very proud to partner in bringing several leading-edge intercultural events to Bogotá, Colombia. We hope you can join us! Please pass this announcement on to your professional and social networks so that we might let everyone know about these unique opportunities.

On Thursday May 10

We will officially launch the Colombia Transfórmate program and the Cultural Detective Colombia package. Cultural Detective President Dianne Hofner Saphiere will facilitate a workshop which will be followed by a cocktail reception. This terrific evening is not to be missed! Cultural Detective is very honored to be part of this incredible project.

On Monday May 14

We will hold a high-energy event designed to ready Colombians to reap the benefits of their recent Free Trade Agreements with Canada and the USA, and upcoming agreements with the European Union and South Korea. Anyone wishing to improve their cross-cultural business acumen will find attendance extremely valuable. We believe this is one of the first-ever public workshops on intercultural communication in Colombia. The workshop will be facilitated by Fernando Parrado of Global Minds, Andrés Forero of the Forero Medina Abogados Asociados, and Dianne Hofner Saphiere of Cultural Detective.

Sponsor These Two Events

Put your organization’s name in the hands of thousands of first-tier Colombians by purchasing a sponsorship. Show your commitment to global effectiveness, and to Colombia! Sponsorship opportunities start at an incredible US$1350, and include two seats at both the Thursday and Monday events, an exhibit table, an introduction of your organization, and your logo on event banners.

Act quickly, as these very affordable sponsorship opportunities will be available for only two weeks.

On Wednesday May 9

Dianne will also present a seminar on intercultural and global business competence for students and staff at Sergio Arboleda University. The seminar will take place on day three of the university’s fifth think tank entitled, Marketing, Sociedad e Interculturalidad: Una Mirada desde la Globalización.

Talent Development Huge Topic For Keeping Employees

It’s commonly known (but not necessarily budgeted for during economic downturns) that talent development serves many purposes. Successful organizations use talent development for employee attraction and retention as well as superior employee performances. Recently, in discussing how best one of our site license clients could leverage Cultural Detective in one of their employee networks, the client mentioned there is a big push for employee development again, now that the economy is coming back. Their focus is on keeping people by teaching the skills that support inclusive and collaborative teams.

Cultural Detective is a phenomenal tool for teaching both of these skills and applying them on a global, as well as domestic level. As Janet Bennett points out in her article, “Culture General or Cultural Specific? That is the Question!“, “Rare is the professional arena where we face colleagues from only one or two cultures. Instead, each of us operates with a wealth of cultural diversity that is rich, complex, and challenging. This reality suggests that learning a single specific culture serves us well, and learning about cultural difference in general serves us even better.”

So developing employees to operate effectively in an inclusive and collaborative environment can be accomplished by learning the core Cultural Detective Method which builds the skills of knowing oneself, understanding others and building cultural bridges. As Janet goes on to say, “Cultural Detective® provides both the necessary culture-general breadth of application across many cultures while developing the culture-specific depth. The Worksheet provides a unifying and consistent process for examining yourself and others, and for bridging differences as assets. CD develops intercultural competence by simultaneously improving culture-general and culture-specific expertise in a variety of realistic contexts. By examining key cultural similarities and differences in a culture-general way, we come to know ourselves, and are able to compare and contrast our own perspective with that of others. By focusing the Values Lens on a specific culture, we enhance our capacity to untangle problems, negotiate differences, and look below the surface within and across cultures.” And through this process we can understand how to be inclusive in our multicultural environments and collaborate with those we don’t necessarily share common experiences and work styles.

With feedback like I heard from our client it seems talent development is perhaps again ready to be supported both financially and in practice — let Cultural Detective be your tool-set for achieving an inclusive and collaborative workforce!

Developmental Intercultural Competence

The ability to collaborate productively and enjoyably across cultures is more important than ever, whether we focus on communicating with elderly parents or teenaged children, or on building trust and producing results with colleagues at the next desk and across the planet. But what do theory and practice tell us about how to gain maximum effectiveness?

One exceptionally rapid and proven way to successfully improve cross-cultural competence is to use the MashUp: a natural and powerful combination of two leading intercultural competence development processes: Cultural Detective and Personal Leadership.

Starting in September we will conduct a four-month course that will transform your personal and professional practice. It will enable you to use the MashUp in a developmentally appropriate manner to support and stretch learners at all stages of intercultural development.

Coursework will be conducted virtually, allowing you to complete the assignments from your office, home, or during travels. There will be individual and pair assignments, in addition to online classes. Do not miss this opportunity to work with some of those who are doing leading intercultural competence work worldwide. Learn more.

Oldie but Goodie: Indigenous Contributions to Global Management

Because Cultural Detective is used by so many corporations, business schools, and management development programs, we are obviously very interested in strategies for broadening the scope of management teaching.

Recently I was perusing our archives, and found this terrific article from way back in 2005, authored for us by Cultural Detective Malaysia co-author Asma Abdullah. It focuses on indigenous contributions to global management, and I thought some of you might enjoy reading it, for the first time, or seeing it again with new eyes. Oldie but goodie, in my opinion!

Designing and Implementing Global Diversity

The global scene is expanding and our world has become borderless. Designing and implementing programs for global audiences presents unusual challenges. Familiar activities may be culturally inappropriate, simulations may need revision, or inherent cultural biases may limit our impact.

This five-day workshop will address strategies for adapting programs for highly diverse audiences, and for designing culturally responsive design and instruction. The facilitators will share a learning framework that will help you assess the impact of culture on teaching and learning. You will learn about the success, the challenges, and the next steps for preparing and delivering culturally sensitive global diversity programs.

To be held July 23-27 in Portland, Oregon, as part of the Summer Institute for Intercultural Communication, the workshop is designed for intermediate and advanced designers, developers, and others launching or anticipating launch of a global diversity program within organizations, whether corporate, nonprofit, NGOs, or educational institutions.

In this session, you will:
  • Learn to adapt simulations, games, blended learning and social media for multiple purposes by tailoring design, delivery, and debriefing.
  • Explore multiple approaches to delivering global diversity.
  • Assess how cultural biases impact design and implementation.
  • Identify learning challenges in implementing programs across cultures.
  • Adapt instructional design for culturally diverse populations.
  • Apply new skills to deliver culturally sensitive and culturally adaptive instruction.

The Summer Institute for Intercultural Communication is one of the world’s premier professional development venues. Be sure to join us in beautiful Portland, Oregon this coming July.