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The Business Case For Cultural

Competency

Ila Gandhi

TMC | A Berlitz Company

4/28/20152015 TMC | A Berlitz Company. All

rights reserved1

Agenda

• Global business and workforce trends • The business case for cultural competence

– What is cultural competence– What gets in the way of Cultural Competence– Developing cultural competence

• A framework to reskill and retool employees– The model– Practical application– HR’s role in driving cultural competence– TMC: Who we are and how we help our clients

4/28/2015 2015 TMC | A Berlitz Company. All rights reserved 2

3

Increasing globalization represents one of the most powerful levers available for boosting growth – yet the world is generally less globalized than often assumed.

www.ghemawat.com – Depth Index of Globalization 2013

The Impact of Globalization

4/28/2015 2015 TMC | A Berlitz Company. All rights reserved

http://www.ghemawat.com/

2050 (est)

2013

1950

Estimated Population Growth by Region (based on top 10 countries)

Asia

Europe

LatAm

N. Amer

Africa

Population

estimate in 2050

is 9.6B,

previously 7.2B

Faces of the Future, The Economist, June 2013

• A flat world demands cultural competence Markets globalized

Multicultural teams

European culture no longer dominant

Africa and Asia dominate population growth4/28/2015 2015 TMC | A Berlitz Company. All rights reserved 4

Culture 2020 Defined


Cultural spectrum, by Goldman Sachs, illustrates the complex workforce. This structure was designed over one year by an internal task force termed “Asians in Asia”. The

project scope was to help untangle the complex cultural spectrum present in the region to further inform its people

process (talent management) in Asia.

Values Drive Behavior


Observable Behaviors

Beliefs

Unobservable

(Underlying Values)

Subjective Culture

Objective Culture

Definitions and Characteristics of Culture

Values

Beliefs and Assumptions

Emotions

Behavior

Norms

Context/Situation

Definition:The complex pattern of ideas, emotions and observable manifestations “Behaviors and/or symbols” that tend to be expected, reinforced and rewarded by and within a particular group. -TMC

Culture is:

• Collective • Learned• Dynamic

• Situational• Complex• Contradictory


Individual Culture

8

Team CultureNational / Societal

Culture

Functional Culture

Identity Group

Culture

Organizational

Culture

Culture is Complex


Why Cultural Competence


Diversity

Inclusion

Intercultural Competence

The Who

The What

The How

Stages of Development


Ethnocentrism / Mono-Culturalism

Denial

Defense

Minimization

Acceptance

Adaptation

Integration

Ethnorelativism / Multi-Culturalism

DMIS Model by Milton Bennett

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o The dangers of stereotyping

o Personal bias and prejudices

o The dynamics of differences

o Insider Outsider Dynamics

What Get’s in the Way of an Intercultural Mindset


12

Strategic Performance Framework


Connection Between Culture and Preferences

Values

Beliefs and Assumptions

Emotions

Behavior

Norms

Context/Situation

Interaction Style

Orientations that impact how

we communicate and engage

others.

Thinking Style

Orientations that impact

how we process

information.

Sense of Self

Orientations that define how we

view our “self” and are

motivated.

The connection between behaviors, beliefs, and emotions that are expected,

reinforced and rewarded by and within a particular group. 4/28/2015 2015 TMC | A Berlitz Company. All rights reserved 13

The Cultural Orientations Model


A neutral framework for describing and understanding cultural differences.

Interaction Style Thinking Style Sense of Self

How people tend to communicate and engage with others in work situations.

How people tend to process information in work situations.

How people tend to view identity and motivation in work situations.

fixed-fluidbeing-doingdirect-indirectexpressive – instrumentalformal-informaluniversalistic-particularistic

single-multi focuslow-high contextlinear-systemic inductive-deductivepast-future

control- constraintprivate-publichierarchy-equalitycollectivistic-individualisticcooperative-competitiveflexibility-order

Open attitude is a

prerequisite for

engaging in the

continuous learning

process of developing

cross-cultural

effectiveness

Self-awareness

facilitates

awareness of

others

Cultural knowledge,

in turn must be

translated into cross-

cultural skills to

achieve cross-cultural

effectiveness

To become useful self-

and other-awareness

must be grounded in

cross-cultural

knowledge

Cultural Perspectives


Cultural Skills

Cultural Due DiligenceAssessing and preparing for the

possible impact of culture and cultural difference

Is it reasonable or feasible for my counterpart(s) to change?

Style-SwitchingUsing a different behavioral

approach to accomplish

one’s goals

Cultural MentoringHelping others with cultural

adaptation and integration

YES NO


Cultural DialogueExploring cultural

differences and negotiating

mutual adaptations

Hierarchy Equality

Power

How individuals view differential power relationships.


A Cultural Continua

• Attended a course on Understanding the American culture (Cultural Due Diligence)

• Made an effort to break the ice by saying something at the beginning of the meeting (Style-Switching)

• Validation: It’s okay to speak up – your opinion matters (Style-Switching)

• Volunteered for assignments provided the opportunity to build relationships (Style Switching)

• Leveraged my Cultural Mentor (Cultural Mentoring and Cultural Due Diligence)

• Raised in a traditional Indian family environment

• Women do not speak up and share their thoughts

• Family Elders make the decisions for you and the family

• Individualistic behavior was considered selfish and disrespectful

Influencers / Experiences

Scenario Development Plan

In my first job in the United States I was miserable at work.

• I would never speak up in meetings since I was always waiting for complete silence before speaking

• Felt awkward and uncomfortable at work since I assumed my co-workers perceived me as being arrogant and/or aloof

• Was reluctant to take on any responsibility – not because I did not want to but, I thought I did not have the permission nor title to do so.

My Personal Journey to Cultural Competence


Your role as HR Leaders

FROM:

Raising

awareness

and

knowledge

TO:

Spreading

Cultural

Competence

into the

organization

Group Individual Team Organization

Goal: Enhance individual performance

Improve team performance Enable system wide change

Focus Areas:

• Cultural Transitions• Relocations• On boarding new hires• Developing Leaders• Working with diverse

colleagues• Building cross-functional

relationships

• Identify gaps between team members

• Establish team operating principals based on gaps and personal preferences

• Maximize impact of virtual teams

• Moderate cultural integration discussions

• Coach project teams entering new markets

• Drive collaboration in mergers and acquisitions

• Work with Employee Resources Groups


• We help companies execute their global business strategiesthrough training, web tools and consultative solutions.

• We employ a blended learning approach that supports skill development at the organizational, team and individual levels

• We help facilitate the development of global leadership skills of leadership, communication and cultural agility across the organization, enabling the firm to achieve its business goals and maximize performance.


TMC – Who we are

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