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International Seasoning

October 20th, 2009

Information’s pretty thin stuff unless mixed with experience. ~Clarence Day

Nearly every day, I work with colleagues who are eight or more time zones away. I’ve been doing this, with few interruptions, since the ‘80s. Back then, “geographically distributed” projects were run only by multinational corporations.  Times have changed.

Global markets have become more interdependent, and collaboration across borders is now commonplace, even at smaller companies.  Businesses know that they have to team up with companies in other regions to compete in the global “value creation” race*.

But a lot of companies struggle with this. In a June, 2009 survey by TMA World, 82% of respondents rated the performance of their company’s “global, virtual” teams as either ‘moderate’ or ‘poor’.  Yet nearly all of those surveyed said that global teams were ‘very important’ to their organizations.

The reason for this disconnect is that going global is a relatively new undertaking for lots of businesses. Many organizations simply haven’t “re-calibrated” for a global marketplace, and they don’t have all the pieces to support a successful global strategy.

“Expert” Advice?

There’s no shortage of advice from experts on how to improve cross-cultural business performance. Their recommendations — depending on what they’re selling — range from adopting more robust collaborative tools to receiving cross-cultural training.  Smart tools and interventions do have their place, but the missing piece at a lot of organizations is experienced talent, particularly at the leadership level.

Organizations interested in thriving on a global stage need leaders with high-level experience in regions where they’re operating, or at least in culturally similar markets.  This is particularly true for companies working in developing regions where business conditions are undergoing rapid change.

The Virtues of Seasoned Leaders

Leaders with relevant international business experience can bring dexterity to handling cultural differences in communications styles, approaches to completing tasks, and ways of handling conflict which can become magnified over the life of a project.

At a tactical (project) level, seasoned leaders with strong relational skills can recognize whether a breakdown in a project stems from a misunderstanding due to cross-cultural differences or from another source.  Seasoned leaders can take proactive steps to help their team to avoid the risks of cross-cultural misunderstanding.

In addition to interpersonal skills they’ve acquired, seasoned leaders can provide context to projects in developing regions where laws, commercial practices, and attitudes toward business are in flux.

Seasoned leaders can bring a rich perspective to multinational projects. Most of us who enjoy working in other markets are deeply interested in these regions. We become intimate with each country — its landscape, history, and politics. We devour every obscure book and report for the sheer joy of learning more, and we’re energized by putting the knowledge to practical use.

Lasting Value

Internationally-seasoned leaders can steer a steady course over the inevitable bumps and around the unexpected curves of cross-cultural projects.  The positive impact can extend across the organization long after the project or campaign has ended. They can help to shape their organization’s culture by passing on their knowledge to the next generation of leaders.

Courses in cross-cultural relations can inform your workers about handling cultural differences. But, there’s no substitute for having leaders who’ve managed high-level assignments in relevant foreign markets. My advice is this: Be sure to add international seasoning to the mix.

***

As always, I’d love to hear your views.  What opportunities and challenges do you see in the global economy, and how do they affect you?

……………………………….

* In their ‘08 book, The New Age of Innovation, C.K. Prahalad and M.S. Krishnan use the term R = G (Resources = Global) to describe collaboration across cultures as an imperative: “All firms will access resources from a wide variety of other big and small firms—a global ecosystem”. (I discussed the book here.)

__________________

Want more info on this subject? Here are some recommendations from broad to narrow in focus:

I’d previously recommended Fareed Zakaria’s book, The Post-American World (W.W. Norton & Co., ‘08) which makes a compelling case for the rise of developing countries in an increasingly interconnected economy.

Parag Khanna’s book, The Second World: Empires and Influence in the New Global Order (Random House, 2008), makes a compelling case for understanding the world from the standpoint of Second World countries. I reviewed Khanna’s book  here.

For a variety of books about doing business in cross-cultural settings, check out the resources at Intercultural Press.

INSEAD professor Horacio Falcao discusses how to avoid the pitfalls of cross-cultural negotiations featuring this short video on the subject.  (When do we underestimate vs. overestimate the impact of cross-cultural differences?)

Related post: International Rules of Engagement, April, 15, 2009, and various posts on Emerging Markets topics.

What resources would you recommend?

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This entry was posted on Tuesday, October 20th, 2009 at 12:04 PM and is filed under Collaboration, Emerging Markets, International Business, R=G, leadership. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

  • One other "seasoning" that has worked well for me when I taught ESL, is to start with an open heart.

    Feelings of acceptance, care and interest generate very different heart rhythms than those produced by feelings of animosity, fear or worry. These are sensed by the person you're communicating with, often at an unconscious level.

    When people are at ease, they feel non-threatened, which means that the stress response has not been activated. This is great news - communication can then move forward.

    As I get to know you, Steve, it is apparent that you operate from a place of heart which enables you to add your particular brand of seasoning to your work.
  • Marianna, thank you for raising another dimension here, and for the wonderful work that you do in this important field. Thank you for your kind words, too.

    I've alluded to interpersonal (relational) skills in prior posts, including this one (Heart of Business): http://ospreyvision.com/blog/2009/03/17/cpr-for-the-heart-of-business/ . International business experience combined with relational skills are a powerful combination for collaborating across cultures. Daniel Goleman and others recognize that empathic or heart-centered skillfulness is integral in this age of global markets. Thank you for the reminder!

    Steve
  • Marianna,

    Your comments provided insights into understanding behaviors that are destructive, or at best non-productive. I've consistently understood and applied these kinds of behaviors as they relate to the Customer Experience Management business, where building trust is critical. However, all too often in our personal lives we permit the business of life to intervene, separating us from the good that comes when the heart is open.

    Steve's work consistently reflects an open heart, integrated with wisdom and understanding.

    Thank you for the reminder.

    Joyce


  • Joyce,

    Thank you for your kind comment, and for being a wonderful role model!

    Steve
  • Joyce
    As usual, a forward-leaning, thoroughly researched, and well presented perspective. Kudos.
  • Thank you, Joyce!
  • Plenty of seasoned insights for thought, as usual, Steve. Having culturally caring and aware leaders on the ground is equally important in both the "home" and the "away" market places. An exchange in another's environment provides crucial opportunity to walk in someone else's cultural shoes - if you are willing to take a little exercise.

    Back in the early days of global-local assimilations, multi-nationals created directors of regions to cater to outlying posts. Sometimes these individuals, if they could speak another language and were willing, might be posted away from headquarters to run things from the ground. Where centralised control was most stringent, the whole thing was likely to be managed from a single base, with country managers on tight-enough-to-hang ropes. The paths of least resistance, and communications bowing to the "lowest common denominator", were often the way that hierarchical control was dished out, leaving a sour taste in the mouths of anyone not drinking from the HQ fountain. Not only the business structure and culture, but also the brand in question rarely benefited from taking on local flavours and intertwining nuances to build a stronger global appeal in the early roll-outs. When a dogmatic brand - unsurprisingly - failed to win over the hearts of local consumers, the root cause was as misunderstood as the offer of a solution meeting local needs, exceeding expectations and being culturally accepted.

    Now – as you say – with all sizes of business stretching beyond their own borders, I find a different geographical mobility (and direction), as well as a more cautious humility of expectations on the menu. It's a fascinating, ever-evolving topic.
  • Kathrin,

    Thank you for insightful observations, particularly on how the multinationals structured their organizations and the impact that had on business. Enlightened businesses, large and small, have an opportunity to gain a competitive edge by developing "globally integrated" structures and collaborative cultures. Very interesting area to explore further...

    Steve
  • Bonnie Zimmerman
    Steve - great post - many people are good at managing within their own culture but cannot translate those skills in a multicultural environment. Most people learn thru the guidance of mentors and coaches. Workforces are younger (fewer mentors & coaches), the speed of business is faster, the ability to manage change is critical - all pointing to the need for seasoned leaders with international business experience as a key to success in the global marketplace.
  • Bonnie,

    Well said. Organizations that have a healthy generational and cultural mix seem to be better equipped in this environment. Thank you for your comments!

    Steve
  • Yes, Steve - training on its own won't do it. I think your point about having a leader in place to navigate is key...the ability to recognize cross-cultural issues and act accordingly cannot be underestimated; not to mention, the influence of that competency on other team members who may feel hesitant or "cross-cultural intimidated", and thereby, as you allude to, create a "succession plan" of international collaboration.
  • Thank you, Doreen. You raise another overlooked virtue of seasoned leaders and that is the confidence that they can impart to less culturally experienced team members. There's a case to be made for organizations establishing a formal mentoring program in this area.
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