The Power of Cultural DifferencesPennsylvania International Week

Erie, PA September 18, 2012

Three Megatrends are Changing the World’s Dynamics:

1) Higher GDP in emerging markets2) Young population in these markets3) Rapid urbanization of Asia, Africa, and

Latin America

Source: The Economist Power Shift08-04-2011

1.Growing

GDP

Source: Earth Habitat.com

2. Young

Population

Source: World Bank

3. Urbanization

Largest Cities in the World in the 20th Century:• London, New York, Paris, Chicago, Berlin, TokyoLargest Cities in the World in the 21st Century:• Mumbai, Sao Paolo, Shanghai, Jakarta, Karachi, Lagos

Source: the Atlantic 2000 Years in One Little Graph06-19-2012

How to Position Your Company to Benefit From the New World Dynamics?

- Develop a diversified workforce- Train to develop a global mindset - Lead with cultural intelligence- Must rethink the way we innovate- Pay attention to disruptive innovation- Acknowledge the trickle-up syndrome

The Lewis Model

Your Cultural DNA & the 7 Cultural

Dimensions at Work:1. Social Stratification2. Independence Level3. Business Focus4. Communication Pattern5. Concept of Time6. Handling Change7. Career Driven vs. Joie-de-Vivre

GLOBAL VIEW OF SOCIAL STRATIFICATION In an egalitarian culture, people:• Speak their mind• Life is informal• Titles are not important• Merit prevails for reward and promotion

In a hierarchical culture, people:• Speak with caution• Life is very formal• Titles are very important • Seniority prevails for reward and promotion

GLOBAL VIEW OF INDEPENDENCE LEVELIn an individualist society, people:• Are self-starter• They don’t like to be micro-managed• They control their destiny

In group-oriented culture, people:• Like to follow directions• Like to be micro-managed• Believe in fate dictating their trajectory

GLOBAL VIEW OF BUSINESS FOCUSIn a “transactionist” culture, people:• Focus on the product, the warranty, the profitability• Rely on the law when things go wrong• Don’t mix business and pleasure

In relationship-oriented culture, people:• Focus on the people who sell the product• Rely on the relationship when things go wrong• Business is pleasure

GLOBAL VIEW OF COMMUNICATIONIn a direct culture, people:• Say things as they are• Go straight to the core (low context)• Being honest is a sign of integrity

In an indirect culture, people:• Involve others to discuss an important matter• Don’t go straight to the problem• Speaking one’s mind is disrespectful

GLOBAL VIEW OF THE CONCEPT OF TIMEIn a linear culture:• Time is a commodity• Punctuality is a sign of respect• The relationship understands the constraint of time

In a circular culture:• Time is created when needed• Punctuality doesn’t mean anything• The relationship supersedes time constraints

GLOBAL VIEW OF HANDLING CHANGEIn a change oriented culture:• Change keeps us young• Change means you can adapt and grow• Failure is part of growing

In a change-resistant culture:• Change kills us• Change means that you are no longer in control• Failure means that you have lost face

GLOBAL VIEW OF WORK/LIFE BALANCEIn a culture where people live to work:• Work defines a person• Ambition is admirable• Work always comes first

In a culture where people work to live:• Relationships define a person• Ambition is negative• Pleasure always comes first