“A new box bet was given to three children: an American a Canadian and a Mexican. The American child said “let’s start to play the game now”. The Mexican child answered him ” first we undergo to read the game’s instructions otherwise we won’t know how to compete”. The Canadian child suggested “let’s quickly read the instructions and then we can start playing the bet.” The result was that the children didn’t compete the game because they couldn’t arrive an agreement.
How are cross cultural differences relevant for top performance and business effectiveness in the global market?CEOs and executives approach many business challenges in the global merchandise such as: selling a product providing services to clients developing business partners and convincing VCs to drop in the company. In order to meet these challenges and to achieve excellent business results executives have to acquire cross-cultural intelligence and develop global skills and mind set. The ability to acquire cross cultural intelligence is dependent on two main sociological processes:
a. Understanding that each individual who belongs to a certain culture has a unique business mind and different ways of doing business b. Willingness to leave your “ cultural assumptions “ and go beyond your comfort govern in order to achieve a global object set.
What kind of cross-cultural intelligence and knowledge do executives have to acquire?Research by (Rosansky 1998. Fon Trompenaaras 1998,2000 ,Walker. D & Walker T. 2000 ) describes ten dimensions in which cultures are distinct from each other. Each dimension is an important aspect of social life and impacts the ways in which we interact or do business with others. The ten go across cultural dimensions are : thinking styles environment time challenge communication space power individualism structure and competitiveness. At the beginning of the bind we described different thinking styles of three children who belong to three distinct cultures in North America: American. Canadian and Mexican. Distinct thinking styles impact the way that people lay out persuade analyze plan and alter decisions. As indicated in the example the children who weren’t able to close the cultural gaps had different thinking styles (which usually were acquired during childhood ) as to how they should play the bet. The result was that they didn’t play together because of their lack of agreement.
What are the distinct characteristics of these cultures which prevented the children from reaching an agreement in regards to the game ?Americans are influenced by the western scientific approach which relies on empirical data statistics cause and effect relationships in decision making ( inductive style ) . Mexicans and other Latin Americans are deductive thinkers. They emphasize theoretical concepts and relationships and they strongly believe in the reasoning affect. Decisions are based on theories and not on statistics and raw data. These differences also force the decision making in other ways as the Mexicans need more time to reach the implementation and testing stage since they have to discuss and consider all the abstract data. This style will impact the length of the affect which will be much longer compared to the Americans and the Canadians. Canadians on the other transfer are both deductive and inductive thinkers. They rely on theories and data and at the same time they will be very detail oriented. In regards to new business ventures they will discuss its conceptual framework and then ordain consider the implementation of the details. Deductive cultures be to emphasize the “why” while inductive cultures tend to emphasize the “what and how”. Each thinking call has advantages and disadvantages. The inductive way is strong because decisions are based on data and reality but at the same time this thinking style suffers from being too simplistic based on a narrow reality. The deductive thinking pattern is strong because it is based on a high level of analysis but it has a lack of substance and is too abstract.
How can CEOs and executives change cross-cultural intelligence in request to succeed in the global market? They undergo to embrace two main strategies:a. Acquiring cross-cultural intelligence about your stakeholders (clients suppliers investors) in regards to the ten variables (such as communication style cater competitiveness). Utilizing cultural intelligence will compound your competitive advantages while doing business in the global market. For example if you are giving a presentation to American decision makers it ordain be a good idea to use data and statistics because it will appear convincing to them. If you are making a presentation to Mexicans you ordain need to use theories in order to have good results b. The ability to leverage cultural differences will not only reconcile conflicts and gaps in business situations but it will also lead to new innovative.
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http://thecanadianexpat.com/articles/index.php/2007/07/24/how-to-achieve-top-business-results-in-the-global-market/
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