Managing Projects Across Borders: Understanding the Impact of Culture

on Global Teams

Sue Shinomiya & Lillian A. Tsai

PMI Conference

August 23, 2013

Today’s Agenda

Opening icebreaker discussion

Why is culture important in working globally?

What is “cultural competence”?

Cultural dimensions that affect global teams

Direct vs. Indirect communication exercise

Resources

Close

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Interactive Discussion

What are your biggest challenges in working on a global team?

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What is your biggest challenge working on a global team?

Here are common issues:

A. Building trust without face-to-face interaction

B. Miscommunication across different languages, styles and accents

C. Getting contributions from everyone in meetings

D. Lack of accountability for deliverables on time

E. Time zones create more stress

F. Information isn’t shared across the team

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Cultural Competence is a global team advantage

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Is understanding culture an important factor for managing global virtual teams?

I think about culture every day

I never think about culture

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According to a 2012 survey by the Economist Intelligence Unit (a division of The Economist Group) of global executives:

88% of respondents believed improved cross-border communication could improve revenue.

86% estimated that it would increase their market share.

97% answered that cross-border collaboration is important within their organization.

95% held that it was important when working with external partners and suppliers in other countries.

A Booz Allen survey (April 2013) among global employers found that cultural competence and the ability to work in diverse teams were ranked as more desirable qualities among job candidates than functional skills for the actual position.

Global Business Executives Survey…

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What is Cultural Competence?

Cultural competence comprises four components:

1. Awareness of one's own cultural worldview

2. Attitude towards cultural differences

3. Knowledge of different cultural practices and

worldviews, and

4. Cross-cultural skills

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Characteristics of Culturally Competent People

Self awareness/openness

Empathy/compassion

Curiosity/Knowledge

Tolerance for Ambiguity

Generate multiple interpretations

Communication Style Fluency

Adaptability/flexibility

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“That whole which includes knowledge, beliefs, art, laws, morals, customs, and any capabilities or habits acquired by one as a member of a certain group.”

Culture is…

Shared by all or almost all members of a group.

Passed on from generation to generation.

Shapes our behavior and structures our

perceptions (“behavioral software”)

values attitudes

assumptions

beliefs

EXPLICIT (OBSERVABLE)

customs/traditions/beliefs

laws

socio-economic conditions age/gender

artifacts systems physical appearance/abilities business practices

food

Perceptions about

differences

Ethics and morals

The Iceberg

Model

IMPLICIT (NOT OBSERVABLE)

feelings

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Language

cognitive abilities

Low Power Distance High Power Distance

Direct Communication Indirect Communication

Strict Time Conscious Elastic Time Conscious

Emphasis on Individual Emphasis on Group

Confrontation in Conflict Preference for Harmony

Task Focused Relationship Focused

How do these affect your success as a team?

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Cultural Dimensions that Affect Global Teams

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Low Power High Power

Power means corruption and dominance

Power represents stability and order

Middle class Social differences

High social mobility Limited social mobility

Consultative Authoritarian decision-style

Information is shared Information is controlled

Low vs. High Power Distance

The degree to which a community accepts and endorses

Authority, Power Differences, and Status Privileges

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Direct Indirect

Focus on facts, the truth Preserve harmony, face

Individual point of view Concern for group

Say what I’m thinking Respects hierarchy

Explicit “tell it like it is” Reads between the lines

Indirect and Direct Communication Styles

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The accepted dominant communication style

of a cultural group

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How Disagreements are Expressed in Indirect Cultures

Verbal cues • “It’s difficult” “Yes, yes, yes…” • Absence of clear, committed agreement • Avoiding the subject, or abrupt change • References to higher ups who disagree

Non-verbal cues • Silence, avoiding eye contact, smiling • Gestures [Asia: “tsk”, sucking air]

Do… • Be tactful • Depersonalize. Avoid “You”. Use “One should…” or “We

could…” • End with good manners, harmonious demeanor

Don’t … • Show emotional (angry) responses or force open

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How Disagreements are Expressed in Direct cultures

Verbal cues • “No” “You’re wrong” “Impossible”

• (France, Israel, Russia, Netherlands, Spain ) • No + reason, reference to time, “Yes, but…”

• (U.S.A.)

Do… • Prepare yourself for “No” or blunt statements • Continue the dialog to reach understanding “Tell me more…”

Don’t … • Take personal offense • Lose respect for the person, if this is cultural norm • Avoid or end the relationship • Remain silent • Be forceful or raise your voice

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Giving Feedback Discussion

You and your counterpart worked diligently the last month across time zones. With one week left to finish, he sends you his report. It has mistakes that prevent your project and the team from moving forward. You know he is from an indirect cultural style. You call him right away.

Which of these feedback styles would you recommend?

A. “Your report has mistakes on pages 6 and 8.”

B. “I have concerns after reading the report. Want feedback?”

C. “Our project success is important. Let’s review certain points.”

D.“This is unacceptable, please check it again.”

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Monochronic vs. Polychronic Time

Monochronic Time

Time is dictated by a watch

One activity at a time

Deadlines and schedules taken seriously

Plans change only if necessary

Polychronic Time

Time is dictated by the situation and relationship

Various simultaneous activities

Time commitments seen as objectives to be achieved, if possible

Plans change often and easily

The importance of time and its influence on society.

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What are YOU doing to be an effective and collaborative global

team member?

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Beyond Culture, Edward T. Hall

Business Passport to Japan, Revised & Updated, Shinomiya & Szepkouski

Communicating Across Cultures, Stella Ting-Toomey

Conflict Across Cultures, Lebaron & Pillay

Contemporary Leadership and Intercultural Competence, Michael A. Moodian, editor

Cultural Intelligence, David C. Thomas & Kerr Inkson

Kiss, Bow or Shake Hands, Terri Morrison, Wayne Conaway & George Borden

Managing Intercultural Conflict Effectively, Stella Ting-Toomey & John G. Oetzel

Managing Cultural Differences, Moran, Harris, Moran

Where in the World is My Team?, Terence Brake

What is Global Leadership?, Gundling, Hogan and Cbitkovich

Reference Books

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Sue Shinomiya - sshinomiya@comcast.net

Lillian A. Tsai - lillian@tsaicomms.com /

www.tsaicomms.com