bridging the uk - latin america gap, south yorkshire international trade f…

Bridging the UK – Latin America gap.

Hugo Teruzzi MSc, Prince2 Registered Practitioner

Latin America – An Opportunity?Tuesday 1 February 2011

Bridge the GAP.www.globaliseuk.com

Contents

Bridging the UK – Latin America GAP

1. Discovering the GAP

2. Finding a way to bridge the GAP

3. Bridging the GAP


Cross-border business

Launching cross-border businesses is challenging

Delivering cross-border solutions is even more challenging

Most international projects suffer

from cost overruns and missed deadlines


There is a lack of multicultural cooperation.

4 common mistakes in cross-border projects

Cultural differences are forgotten or ignored

• Cultural differences are forgotten or ignored• Communication strategies are poor• Cross-border management skills are often

neglected• Global challenges are overlooked


Lack of clear objectives, timelines, and understanding.


Communication strategies are poor




Managers cannot empower integration among regions and

are often overwhelmed by cross-border issues.

Cross-border management skills are often neglected


• Cultural differences are forgotten or ignored• Global challenges are overlooked • Cross-border management skills are often

neglected• Communication strategies are poor


No formal processes are in place to identify and address global challenges and opportunities.

Global challenges are overlooked





Contents




3. Bridging the GAP


Cross section of culture

The outer layer

The middle layer

The core

• Explicit culture: language, food, buildings, houses, fashion, art

• Norms/Values: mutual sense of right & wrong and good & bad

• Human existence: nature “automatic” solutions people organisation logical assumptions


A “most popular” definition of culture

Culture is the way in which people solve problems


The Method: Cultures Problems

Culture is the way in which people solve problems

1. Categorising & clustering families of common problems Cultural Dimensions (Geert Hofstede, Culture's Consequences)

2. Identifying behavioural patterns per Cultural Dimension

3. Finding the UK and LATAM’s countries among these patterns: unveiling the differences – The GAP

4. Bridging the GAP – proposing tips and hints for handling the behavioural differences


Contents




3. Bridging the GAP


The GAPs’ families (Cultural Dimensions*)

Th

e G

APs

– C

ult

ura

l D

imensi

on

s GAP 1: Rules vs. relationships

(Universalism ↔ Particularism)

GAP 2:

GAP 3:

GAP 4:

GAP 5:

*Riding the waves of culture – F. Trompenaars, C. Hampden-Turner


Universalists Particularists

• Rules are more important than relationships - a deal is a deal

Contracts are legally-binding, regardless of changes in situation

A trustworthy person honours his/her word or contract

• There is only one truth or reality which has been agreed to

• Relationships are more important than rules - relationships evolve

Contracts can be adapted to satisfy new situations

A trustworthy person honours changing circumstances

• There are several perspectives on reality relative to each participant

Universalism – Particularism: visualising the GAP


Universalism – Particularism: the car and the pedestrian

You are a passenger in a car driven by a close friend

Your close friend's car hits a pedestrian

Speed was +35 mph / speed limit was 20 mph

There are no witnesses

Your friend's lawyer says that if you testify that he was driving only 20 mph you would save him from any serious consequences.

Would you lie to protect your friend?


Venezuela

Mexico

Cuba

Argentina

Brazil

UK

Switzerland

0 10 20 30 40 50 60 70 80 90 100

Percentage of Universalist answers

97%

91%

79%

70%

65%

60%

32%

Universalism – Particularism: the car and the pedestrian


TRY A PERSONAL APPROACH

• Do not interpret personal attitudes (“LET’S GET TO KNOW ONE ANOTHER”) as irrelevant small talk – they are very important

• Build informal networks & create private understandings

• Pull levers privately instead of signalling the changes publicly

• Seek fairness by treating all cases on their special merits instead of “all in the same way”

Universalism – Particularism: Bridging the GAP


The GAPs’ families (Cultural Dimensions)

Th

e G

APs

– C

ult

ura

l D

imensi

on



GAP 2: Individual vs. group(Individualism ↔ Collectivism)

GAP 3:

GAP 4:

GAP 5:


Individualists Collectivists

• The individual is more important than the group

More frequent use of “I”

• Decisions are made on the spot by representatives

• People ideally achieve on their own and assume personal responsibility

• The group is more important than the individual

Use of “WE”

• Decisions referred back by the delegates to the organization

• People ideally achieve in groups which assume joint responsibility

Individualism – Collectivism: visualising the GAP


Guatemala

Ecuador

Venezuela

Peru

Chile

Mexico

Brazil

Argentina

France

UK

US

0 10 20 30 40 50 60 70 80 90 100

91

89

71

46

38

30

23

Individualism – Collectivism Hofstede Index

16

12

8

6


RESPONSIBILITIES ARE SHARED AMONG SEVERAL PEOPLE

• Be prepared for a long decision making process, and expect to find "new" decision makers along the way.

• Be patient with negotiators who want to spend time consulting superiors

• Try to assimilate - with authority - into the group.

Individualism – Collectivism: Bridging the GAP



Th

e G

APs

– C

ult

ura

l D

imensi

on




GAP 3: The range of feeling expressed(Neutral ↔ Affective)

GAP 4:

GAP 5:


Neutral Affective

• Don’t reveal thoughts and feelings.

• Cool/self-possessed conduct is admired

• No physical contact, gesturing or strong facial expressions

• Reveal thoughts and feelings, verbally and non verbally

• Heated/vital/animated expressions are admired

• Touching, gesturing and strong facial expressions are common

Neutral – Affective: visualising the GAP


Japan

Canada

UK

Mexico

Brazil

Argentina

Venezuela

Cuba/Spain

0 10 20 30 40 50 60 70 80

74%

50%

45%

41%

40%

28%

Feeling upset at work – “% who would NOT SHOW emotions”

20%

19%


• Be prepared to tolerate a plethora of emotions – and moderate their importance

• Their enthusiastic agreement or strong opposition are not necessarily signs that they have made up their minds.

• Avoid showing social distance and try to gain empathy

• The entire negotiation is typically focused on you as a person, not so much on the object or proposition being discussed

Neutral – Affective: Bridging the GAP



Th

e G

APs

– C

ult

ura

l D

imensi

on





GAP 4: Mixing private life and business(Specific ↔ Diffuse)

GAP 5:


Specific-oriented Diffuse-oriented

Specific – Diffuse: visualising the GAP

RelationshipRelationship

PrivatePrivate

• Small area of privacy clearly separated from public life

• Private and business issues interpenetrate


Specific-oriented Diffuse-oriented

• Ethics & morality independent of the person

• Direct to the point – precise & transparent

• Quality of a product Good Relationships

• Ethics & morality depend upon the person-context

• Indirect forms of relating – evasive & ambiguous

• Quality of the relationship Good product

Specific – Diffuse: visualising the GAP

Danger zone


Swed

en UK

Mex

ico

Braz

il

Arge

ntin

aCub

a

Vene

zuel

a

China

0

10

20

30

40

50

60

70

80

90

100

Specific – Diffuse orientation


BECOME CLOSE

• Respect the person’s title, age, background connection, whatever issue is being discussed

• Be generous when timing your business trip – you need to forge a relationship before closing a sale!

Specific – Diffuse: Bridging the GAP


GAP 5: How status is accorded

Th

e G

APs

– C

ult

ura

l D

imensi

on





GAP 4: Mixing private and business(Specific↔ Diffuse)

GAP 5: How status is accorded(Achievement ↔ Ascription)


Achievement-oriented Ascription-oriented

• Respect for superior in hierarchy is based on knowledge and effectiveness

• Senior managers are of varying age and gender and have shown proficiency in specific jobs

• Little use of titles - only when relevant to a specific task

• Respect for superior is based on seniority & seen as a measure of your commitment to the company

• Most senior managers are male, middle-aged and qualified by their background

• Extensive use of titles - to keep clear the power framework

Achievement – Ascription: visualising the GAP


Norway UK

Mex

ico

Braz

il

Mex

ico

Vene

zuel

a

Arge

ntin

a

Urugu

ay0

10

20

30

40

50

60

70

80

90

100

Achievement – Ascription orientation


WHO YOU ARE is more important than WHAT YOU DO

• Make sure your negotiation team has enough older, senior and formal position holders to show the other company that you consider this negotiation important

• Use the title that reflects your degree of influence in your organisation

• Respect the status of your counterparts, even if you suspect they are short of knowledge

Achievement – Ascription: Bridging the GAP


• Try to be friends

• Prepare to be close

• Be patient; moderate the importance of emotions

• Be “senior” and appreciate “seniority”

• Be generous with your time

SUMMARY: Bridging the GAP


Putting CULTURAL ANALYSIS into perspective

CULTURAL ANALYSIS


Success Factors Model – Global PM Framework (IPMA)

• Knowledge Sharing• PM Collaboration• Global Meetings• Audio, Video, Text• Basic Tools & Tech.

• Global Structures• Global HHRR• Global PMOs• Global Org. support• Collaborative Networks

• Global strategy• Stakeholders-channels• Rules & templates• Global Techniques• Global Creativity

• • Global team leadership• Conflict resolution• Trust building• Coaching Global

Teams

Cross-cultural collaboration

GlobalCommunication

Tools &Techniques

GlobalOrganisation

Formal Process to identify and address global challenges and opportunities


3.- Executing

GB Implementation P2 Controlling a Stage

2.- Success Factors ModellingGB Design & Planning P2 Initiating a Project

1.- Configuration AnalysisGB Conceptual Design P2 Starting Up a Project

GlobaliseUK Methodology

3-step method - complements Prince2


About GlobaliseUK

Innovation Across Borders

We are a Sheffield UK based consultancy connected to a cross-national network of +300 consultants around the world

We provide international project services using in-country expertise and capacity

We help our clients exploit new software technologies for competitive business advantage

Latin America – An Opportunity?Tuesday 1 February 2011

www.globaliseuk.com

bridging the uk - latin america gap, south yorkshire international trade f…

Business

border management

neglected

trustworthy

communication

cultural dimensions

gaps families

specific diffuse

4 common mistakes