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Jul 19

Let’s Be Clear – This is Not How Cultural Awareness Should Be Applied

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector No Comments »

Being culturally aware and sensitive in the diverse world in which we live and work is a very valuable asset. As the job market continues to struggle and competition is fiercer than ever, multinational organisations are increasingly looking for people who can prove they are easily adaptable to different situations and can work well in multicultural teams and multicultural environments – what is often termed being “culturally intelligent”.

Indeed, cross cultural awareness training courses are becoming more and more popular as organisations in both the corporate and public sector look to equip their staff with the skills to develop successful international relationships and exploit the benefits that multicultural workforces present.

Recent articles by the BBC and the Daily Mail highlighted the extent to which cultural awareness training courses impact the views of those who take part in them. This week Greater Manchester’s Exchange shopping centre will unveil two ‘Asian-style’ squat toilets after bosses attended a cultural awareness training course run by a local Muslim community activist. Apparently, as one in ten members of the Rochdale community is of Bangladeshi or Pakistani origin, they prefer them for cultural reasons.

Water Drops mustafa deliormanli i1 Let’s Be Clear – This is Not How Cultural Awareness Should Be Applied

© istockphoto.com/ Mustafa Deliormanli

 

While this shows a culturally sensitive approach by the management of the shopping centre to accommodate the cultural preferences and customs of an ever increasing Muslim population, news of these toilets was met with scepticism by the wider community. As many pointed out, the great majority of Muslims in the UK do not install these toilets at home but rather use conventional western toilets. In fact, a large number of the Muslim community were born in the UK and may never have used squat toilets at all. So why should a business cater for a very small minority or even provide a service that was not required at all?

Many examples can be given to illustrate flexibility and adaptability to specific sectors of the ever increasing multicultural communities all over the world. McDonalds has added kosher or halal meals in predominantly Jewish and Muslim areas respectively to show their commitment to their customers’ beliefs and traditions. We have all seen supermarket shelf space reserved for produce targeted at specific communities, e.g. the Polish in West London or the Irish in northwest London. Meanwhile, schools and many companies also allow pupils or employees time and a dedicated space for holidays like Ramadan or prayer time. And while these measures include small changes for other members of the wider community, they are usually welcome as a sign of tolerance.

While demonstrating openness and respect of other cultures are traits that we would expect of any member of our communities here in the UK, the onus on adaptability and flexibility should not solely rest with the population of British nationals – whether they can trace their ancestors back to Boadicea or are second generation Sikhs living in Hounslow. Newcomers to the UK should also be adaptable and respectful of the traditions and customs of their new home country and understand if they do not always match the customs and traditions of their country of origin.

The most successful international organisations are not those that export their country and corporate culture around the world, but those such as McDonalds that have understood how they need to fine tune their product offering and approach to each new country. The role of cultural awareness training is to help companies to understand this while leveraging their undoubted sector expertise.

After reading the news articles about the installation of squat toilets we asked ourselves many questions – did the local Muslim community ask for this? Do they really want this? Do they want to be particularly singled out? What will be the impact on the non Muslim community?, etc. Obviously we are not privy to the conversations and work carried out by the shopping centre and the local community leader who carried out this training.

Communicaid’s intercultural training courses are specifically designed for organisations to understand how much they should adapt to their new markets while at the same time keeping their own “corporate” and core values intact.

As important as it is to cater for the needs of our multicultural society and workforce, it is also vital for people to learn to adapt themselves to their new surroundings as much as possible. This will ensure a much better experience for all involved without risking offence for either locals or visitors.

© Communicaid Group Ltd. 2010

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Jul 04

Being Successful in International Markets – New CEO of Tesco is Model Example

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management No Comments »

Tesco recently announced the promotion of Philip Clarke to take over as the next CEO of the Tesco Group. Clarke is a pure Tesco by-product; in fact his first job was part time assistant in a Tesco near Liverpool when he was still a student.

Clarke made his way to the top of the company and gradually took on more responsibilities from his roles as Store Manager to Supply Chain and IT Manager. According to an article in the Evening Standard, he was eventually designated as the next CEO of Tesco thanks to his brilliant and successful campaign in the South Korean and Chinese markets.

Meeting Neustockimages i Being Successful in International Markets – New CEO of Tesco is Model Example

© istockphoto.com/ Neustockimages

 

Many argue the main reason behind Clarke’s success is his adaptation policy. Instead of trying to force local customers to act like British, he adapted his retail methods and stores to the local market. One of the best examples of this is how Tesco sells fish and seafood in China. Fish does not come in a sealed plastic bag like in most western countries but is instead presented alive in a pool, waiting for the customer to catch it! Thanks to this philosophy and innovative approach, Tesco did not encounter difficulties like some of its rivals like French Carrefour or American Wal-Mart who also attempted to harness the benefits of the market in South East Asia.

Clarke is also responsible for developing successful partnerships with local suppliers when entering new international markets. For example, Tesco signed a partnership agreement with Tata in order to facilitate the opening of new cash and carry stores in India. Thanks to this alliance, Tesco will be able to benefit from the experience and knowledge of Tata (which already own its own retail stores line) to enter this new and promising market and be successful in India.

This philosophy of adapting to the local habits of other cultures and building relationships with local suppliers has made a huge difference in the retail sector. Adaptability is also a valuable skill when it comes to working in other cultures or managing multicultural teams while learning from local partners is also a shortcut to success.

Communicaid’s cross cultural awareness training courses can help you to gain the skills and insights necessary to ensure good working relationships and communication with your international counterparts. The cross-cultural understanding and knowledge you develop on an intercultural training course such as Selling across Cultures will also help you to adapt your business strategies to the local market and better understand what customers in other cultures expect, need and want from you as a global supplier.

Tesco has taken the right steps in this direction and provides its employees with a number of cultural awareness training solutions. By doing the same you may see a significant increase in international sales and be able to develop the adaptability skills of key individuals like Philip Clarke who can make a real difference to your organisation.

© Communicaid Group Ltd. 2010

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Jun 23

Managing International Teams – Can Fabio Capello Harness the Bulldog Spirit?

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector No Comments »

Fabio Capello has been under constant criticism ever since England started their World Cup campaign with a draw against the USA. At the time, people acknowledged that this poor start was not helped by the horrendous mistake made by the goalkeeper, Robert Green. But sceptics pointed out that England did not capitalise on the goal scoring opportunities that would have eclipsed Green’s mistake.

The second match saw things go from bad to worse with an abject draw against the Algerians who gave an excellent performance. The end of the match saw Rooney castigating the England supporters for booing and talk of dissent and unrest surfaced in the England camp. Suddenly, stories started to appear about communication problems between Capello and his team, and the different points of view that were threatening to send England back home embarrassingly early, shredding a nation’s hopes to pieces once again.

To think that only a few weeks ago the media could not be more positive about Capello makes matters worse. His strict upbringing in Italy, another traditionally strong football nation, seemed to be just what the England team so desperately needed to reach the top of world football.

England flags Joe Gough1 Managing International Teams – Can Fabio Capello Harness the Bulldog Spirit?

© istockphoto.com/ Joe Gough

 

After a disastrous Euro 2008 campaign, with manager Steve McClaren, which saw England failing to qualify, they thought that a strong character and foreign influence like Capello at the helm of the English team would help change players’ mentality for the better. Unlike lenient McClaren, who as an Englishman was perhaps more star-struck by his players, Capello, a disciplinarian with strict rules on and off the pitch, would not allow misbehaving and would certainly not treat his players with kid gloves. Indeed, his stint as England manager up until the World Cup had been quite successful and he led the team to nine victories in ten qualifying games, losing only to the Ukraine, albeit only after qualification to the World Cup had been secured.

But as with many high-profile and high-pressure appointments, there were a few things that were ignored when Capello was appointed England manager. Despite his previous successes as manager in his native Italy and in Spain, Capello’s poor English language skills were brushed aside by the FA. His strict disciplinarian approach was also thought to be good for the team, however since English players are pampered throughout the year by their respective clubs, it was perhaps too hard a transition for players in the much-higher pressure environment of a World Cup. Indeed, only after England’s draw against Algeria did it become known that the team had apparently just drank their very first beer since the start of the tournament and that a few players had voiced their dissent against Capello’s tough-love approach.

Cultural, language and communication differences are well-known challenges faced in the business world, and football is no exception. Yet because football players and managers are sometimes perceived as ball-kicking athletes with no intellectual aspirations, their cultural and language differences go largely ignored.

The problem then is when football teams are immersed in high pressure on the world stage. All their differences are magnified and the façade starts to crack. How could an Italian manager ignore the fact that the British need to wind down sometimes with a beer and that they need directions in simple, plain English?

England is facing Slovenia in a must-win match later today, so the time has finally come to deliver results despite the many differences between manager and squad. Only time will tell whether Capello should have undertaken some sort of cultural awareness training course such as Communicaid’s Managing International Teams.

There is no doubt that Capello has done remarkably well and managed to gain a good level of English. Most people at Capello’s age are retired and so his performance and passion is all the more remarkable. Managing an international team, however, requires the Manager of England or indeed any business to harness the qualities of the team and culture(s) that it is made of. In the case of the English team, they have always been renowned for their passion, bulldog spirit and the desire to keep fighting to the end – often to lose on penalties!

Today we need to see that bulldog spirit once more. We don’t care if England lose today as long as they show that they care passionately and deliver a performance to make the fans back home and those that have travelled all the way to South Africa proud. Come on England!

© Communicaid Group Ltd.2010

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Jun 16

Renault: the Challenges of an International Acquisition in South Korea

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector 1 Comment »

The French car maker Renault has recently made a proposal to buy the smallest South Korean car manufacturer Ssangyong Motor. This bid is a joint operation between Renault, its subsidiary in South Korea and its Japanese partner Nissan.

Renault is renowned for its involvement in the world market and is the perfect example of an intercultural company. Its chairman Carlos Ghosn has lived in Brazil, Lebanon, France and Japan where he is highly regarded after his spectacular saving of Nissan during the 90’s. Ghosn also strongly supports multicultural organisations, claiming they will be increasingly successful in the future. His company has also developed a successful joint venture with Nissan and Samsung and is present everywhere in the world from South America to China and Eastern Europe.

It is safe to say that Renault is more than used to dealing with intercultural challenges within the global work place. However, this operation in South Korea will come with its own set of specific challenges and cultural differences that Ghosn and his employees will need to recognise and be able to deal with in order for this acquisition to be a success.

South Korea building 4 i1 Renault: the Challenges of an International Acquisition in South Korea

© istockphoto.com/ Neomistyle

 

Here are just three key areas where French carmaker Renault may experience challenges as a result of the cultural differences.

The Impact of Confucianism
Confucianism values are deeply rooted within South Korean society and have shaped the laws, moral systems, beliefs and values shared by South Koreans. Confucianism emphasises the importance that every member of society look after each other, respect hierarchy and strive for harmony.  This particular value has a tremendous importance when doing business in South Korea and drives South Koreans to look for consensus in the workplace resulting in a sometimes slow and confusing decision-making process.

Kibun and Bae Liou
Like in many Asian cultures, the concept of Face (or Bae Liou in Korean) is crucial to understand.  South Koreans will try to keep face at all costs so you should show them as much respect possible.  A loss of face includes any sign of disrespect or loss of temper.  The concept of Kibun involves understanding other people’s feelings and emotions through non-verbal signals and cues which can sometimes be difficult to correctly interpret without the right level of preparation and cultural awareness and understanding.

Personal Relationships and their Impact on Doing Business
Personal relationships have a significant influence on doing business in South Korea. As relationships are an imperative part of South Korean business culture, it can be helpful to be introduced by a third party. Lacking the proper contact or trying to do business in South Korea without introduction can lead to closed doors and failures.

Understanding these and the many other key concepts in South Korean business and social culture is essential for anyone doing business in South Korea.  To help Renault ensure a smooth acquisition of Ssangyong Motor, employees working with counterparts in South Korea should be provided with intercultural training solutions that will give them the required level of knowledge and understanding of South Korean culture. Communicaid’s Cross Cultural Awareness Training South Korea courses like Doing Business in South Korea or Living and Working in South Korea can help Renault and other companies doing business in South Korea reduce the chances of misunderstandings and critical incidents, resulting in a more successful business venture.

© Communicaid Group Ltd. 2010

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Jun 15

Football – How Intercultural Differences can Make or Break the Dreams of a Nation

Cultural training for Relocation, Culture, Culture training for Business & Management No Comments »
Football Adam Kazmierski i Football – How Intercultural Differences can Make or Break the Dreams of a Nation

© istockphoto.com/ Adam Kazmierski

With the 2010 Football World Cup in South Africa in full swing, there seems to be little else that people talk about these days. Football is the most popular sport on the planet and events such as the World Cup attract fans from all over the world.

Devoted supporters follow their teams regardless of time zone, and players such as David Beckham are revered as much here as they are in Asia or America. Still, even though football’s boundaries seem endless and we can all watch the same match wherever we are, cross-cultural differences between countries remain and can provide challenges even in the international language that is football.

Speaking strictly in terms of business, football and professional sports in general are one of the very few global enterprises in which players and coaches are brought from all over the world and put into a team which is then expected to communicate and achieve positive results immediately, regardless of cultural or linguistic differences. Yet, even though the topic of intercultural training has been more widely reported in the world of business than in sports, intercultural communication should be given attention whenever and wherever international success is expected.

 

An employee who is assigned to a foreign country without any sort of previous experience of the cultural customs, traditions or language can hardly be expected to thrive regardless of his subject expertise or football abilities. A good example to illustrate this point is the one around a familiar face to England fans: Sven-Göran Eriksson.

A Case in Point: Sven-Göran Eriksson

Sven, a Swedish national, is one of the most sought-after international trainers having achieved several victories in European leagues before receiving the coveted post of England manager in 2001. Sven’s England adventure was often criticised but still quite successful, with the FA actually rating Sven as England’s second most successful coach after Alf Ramsey, who led England to their only World Cup trophy in 1966.

After leaving the England post, Sven became coach for Manchester City and led them to their most successful season for decades, but he was let go because of differences with the team’s owner. However, a few days later he was scooped up by Mexico to become their national coach.

With such an impressive CV, it was thought that Sven’s experience in European football could be a breath of fresh air and would help change the Mexican mentality, leading the team to a higher level. However Sven’s stint as Mexico’s manager failed spectacularly.

Starting in 2008, Mexico suffered humiliating defeats against much weaker teams such as Jamaica and Honduras. The Mexicans also lost against the US, their bitter northern rivals, which earned Sven a lot of criticism. When Mexico lost a World Cup Qualifying match against Honduras in 2009, Sven was sacked from his position because the Mexican Football Federation thought it too risky to keep him and jeopardise Mexico’s participation in the World Cup.

Why did things go so wrong?

How is it possible for such an experienced football manager to fail in the seemingly easier level of Central American Football, having previously succeeded in the highly competitive European leagues? There are surely several answers to that question but there is one that focuses on the fact that Sven’s success in Europe was just not transferrable to a different cultural setting like Central America.

Sven is Swedish and as a European football expert he kept up to date with the European leagues and worked for clubs in Italy, Sweden and Portugal. While these countries differ widely in terms of culture, Europeans are clearly more aware of each others’ football traditions thanks to the proximity of their countries and European tournaments such as the Champions League, Euro or the UEFA Europa League.

So Sven-Göran Eriksson’s failure can be seen as his lack of expertise in Mexican football, the wider culture and the football tradition. It is unlikely he had heard much about the Mexican league or the players before his assignment in Mexico. So Sven’s failure could be blamed on a lack of intercultural awareness and a lack of adaptation on his side. It could also be blamed on the assumption of the Mexican Federation that his expertise could be used in any context, despite the cultural differences.

This example shows the importance of intercultural training courses and cross cultural awareness whenever different cultures meet. Whether it is a multinational company or a football coach, expertise and a previously outstanding record do not necessarily ensure a successful international assignment.

Communicaid’s wide range of cross-cultural awareness training courses are specifically tailored to meet you and your organisations’ needs. Communicaid’s cross cultural awareness training courses will ensure international assignees are equipped with the practical tools and skills necessary to live and work in a multicultural environment, whether they are responsible for the roll-out of an international merge or the success of a football club.

Now Sven is national coach of the Ivory Coast and will be playing today against Portugal. Let’s see if he learned his lesson this time…

© Communicaid Group Ltd. 2010

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May 26

Challenges of Doing Business in the Philippines

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector 3 Comments »

 

After years of political and economic turmoil, the Philippines is now a flourishing economy in line with other industrialised Asian countries. Reform efforts since the mid 1990s have attracted much interest from abroad since and economists forecast ongoing economic growth for the upcoming years. Joining this economic upsurge is not an easy endeavour however. Cross cultural differences in business culture and everyday living in the Philippines can cause many obstacles to successful business endeavours if not carefully considered.

 

Philippines Volcano adrian beesley i Challenges of Doing Business in the Philippines

© istockphoto.com/ Adrian Beesley

Below are examples of five of the key cultural differences which international organisations may face when setting up or doing business in the Philippines. Cross cultural training courses such as Doing Business in the Philippines and Living and Working in the Philippines give an in-depth understanding of the cultural behaviour and perception patterns and provide strategies and solutions on how to deal with challenges if they occur.

Hierarchy
Power relations in Philippine organisations are very hierarchical with the senior manager taking a patriarchal role at the tip of the pyramid. Employees rarely correct or challenge authority figures but follow their instructions uncommented. They are also reluctant to say “no” to superiors even when they know they won’t meet the deadline. Foreigners doing business in the Philippines tend to be irritated by this dependent working attitude and often misinterpret it as indifference or a lack of interest.

Making Decisions
Filipinos place a lot of emphasis on group harmony. Consensus is therefore crucial when making decisions so a lot of time is dedicated to hearing and considering opinions. Empirical data and rules are usually not considered a liable source in this process but attention is mainly given to intuition and immediate feelings. Not adhering to this style of negotiation can result in severe misunderstandings and even unsuccessful business outcomes. An intercultural training course on business and social culture in the Philippines will prepare you thoroughly to feel comfortable when discussing business issues with Filipino counterparts.

Personal Relationships
Closely linked to the need for group harmony is the high importance Filipinos attribute to personal relationships and relationship building. Most business relations in the Philippines are established through friends or colleagues and before business matters are discussed Filipinos like to engage in personal small talk. Foreigners often get frustrated and feel meetings do not run efficiently because so much time is designated to establishing and cultivating relationships. They tend to underestimate the importance of socialising and rapport building.

Face
The concept of face in the sense of personal reputation has a large impact on everyday behaviour patterns in the Philippines. Maintaining self-control is of utmost importance in this regard and failure to do so can result in a huge degradation of status. Filipinos therefore have a very indirect style of communication and try to remain calm and refrain from criticising people in public. For the same reason “no” as a sign of disagreement is rarely used. Foreigners often struggle to understand the importance of face. A cross cultural training course on Doing Business in the Philippines will give you an in-depth insight into acceptable communication and behaviour to avoid misunderstandings and offenses.

Time
Filipinos have a very relaxed approach to time which determines pace of life at work and outside. Deadlines and appointments are perceived as flexible rather than definite and finishing off a conversation properly is usually regarded more important than arriving on time. Foreigners often find it difficult to deal with this mañana lifestyle and the many delays they encounter when dealing with counterparts in the Philippines. A Doing Business in the Philippines intercultural training course provides the necessary insight that international business people need to be able to adjust their expectations accordingly beforehand and forego any feeling of frustration and discontent.
 
Acknowledging the existence of such cross cultural differences is essential when doing business in the Philippines. Yet, to be able to avoid challenges or cope with them effectively if they occur is even more important and requires an in-depth understanding of underlying cultural patterns in the Philippines. A Doing Business in the Philippines cross cultural training course will help you to maximise the outcome of your business ventures in the Philipines. At the same time, training will organisations to build an interculturally sensitised workforce that provides an immense advantage for engaging in global business.

© Communicaid Group Ltd. 2010

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May 23

Cross Cultural Politeness – Beyond Please and Thank You

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector 2 Comments »

It’s no secret that it is essential to understand how to be polite and respectful when doing business internationally. But how different can politeness really be from one culture to another?

A number of unwritten principles of politeness exist which must be followed if you want to show respect and consideration to your business counterparts. Here in the UK we have been taught from a young age to say ‘please’ and ‘thank you’, to give up our seat for people who might need it or to apologise after bumping into someone.

Although we know what we need to do to be polite in the UK, many of us are unaware that doing the same thing in another culture may not be showing politeness. Failing to understand how to be polite when working across cultures can lead to communication breakdowns, damaged relationships and a loss of credibility. Cross cultural awareness training can equip us with the skills necessary to avoid these intercultural politeness pitfalls.

 

Business Woman 13 nicole waring i Cross Cultural Politeness – Beyond Please and Thank You

© istockphoto/nicole waring

 

One case of cultural variance in the understanding of politeness is the use of expressions of gratitude. In some cultures, people only expect to give or receive thanks for acts of altruism and not for tasks that are intrinsic to a person’s job, such as a bus driver or waiter. In other cultures such as the UK, however, people thank others for performing any tasks that benefit them. An example of this would be thanking the bus driver when leaving the bus.

Politeness is not always reflected through the use of please and thank you as in the example above. Using an indirect or direct style of communication can also influence the level of politeness you are showing your international counterparts. When doing business in Japan, for example, you’ll find your counterparts consider the use of direct questions to be challenging and therefore impolite. Conversely, doing business in Germany , you may find your German counterparts sometimes consider indirectness to be impolite, as the speaker’s intentions are unclear.

One theory of politeness states that in the process of communication people should consider the socio-cultural norms of people from other countries, develop tolerance and sensitivity towards these norms and work out strategies to make people feel comfortable in each other’s company.

An intercultural training course such as Working Effectively across Cultures stresses the difference in perceptions of politeness across cultures and provides specific strategies to help anyone doing business with other cultures overcome any misunderstandings that might arise.

“Treat everyone with politeness, even those who are rude to you – not because they are nice, but because you are” ~Author Unknown

© Communicaid Group Ltd. 2010

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May 13

International Mergers and Acquisitions: Maximising the Cultural Benefits

Cross Cultural Training, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector 2 Comments »
iStock 000000523518XSmall International Mergers and Acquisitions: Maximising the Cultural Benefits

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The recent announcement that Deutsche Bahn has acquired Arriva paves the way for the creation of one of the largest transport groups in Europe.

Deutsche Bahn operates in 130 countries around the world and is widely known in Europe for its operation of Germany’s national rail services and some key passenger and freight rail services in the UK. Arriva, a large transport services organisation, provides bus and rail services in twelve countries throughout Europe. The resulting merged group will therefore encompass a significant number of European cultures and languages.

 

This multicultural environment is likely to present challenges for the newly merged group that Deutsche Bahn and Arriva need to recognise and deal with in order for the merger to be a success. Developing multicultural project teams, managing virtual communication across Europe, negotiating organisational cultures and dealing with a number of different languages are just some of the challenges they may face. These challenges lie in different cultural values and behaviours that result in diverse business practices.

Examples of challenges rooted in cultural differences might be the greater amount of administration that is preferred in German companies, an indication of the Germans’ tendency to avoid uncertainty and risk and keep control of details. Another example is the high levels of hierarchy displayed by businesses in France while in Denmark there are more flat hierarchies and it is not unusual for decisions to be made by consensus.  The indirect communication style in the UK is another example of cultural difference which may cause confusion for Germans.  Conversely, the British may perceive the German preference for a direct communication style to be aggressive or rude.  These are just a few examples of how cultural difference can impact international business and M&As.

Research has shown that 60-80% of international mergers fail because the companies involved have not put measures in place to deal with cultural differences like these or integrate both national and organisational cultures. Developing a ‘third culture’ that is understood and accepted by employees throughout the company is one of the best ways of ensuring a successful international merger. Communicaid’s cross cultural awareness training courses for mergers and acquisitions can help employees to develop the cultural awareness and intercultural sensitivity required to understand their colleagues’ cultural values and preferences. This in turn will provide them with the opportunity to develop an integrated approach to the company’s culture, essential for any international merger’s long-term success.

Armed with an understanding of these cultural differences, managers working for Deutsche Bahn or Arriva can really harness the broad diversity that this newly formed venture has to offer. Undertaking an intercultural training course such as Managing International Teams or Managing International Mergers and Acquisitions will give international managers involved in a merger or acquisition the insights they need to develop an effective working culture that plays to the strengths of their multicultural teams and maximises the cultural benefits of their company’s acquisition.

© Communicaid Group Ltd. 2010

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May 10

Challenges of Doing Business in Italy

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector No Comments »

Modern Italy as we know it is a relatively new country. For centuries it was divided into small city-states and was only unified in the late 1800s before it had to relinquish territories following the events of the Second World War. While Italian is the official national language and the vast majority of the population is Catholic, to this day Italy has remarkable cultural differences throughout its whole territory.

Italy is divided into twenty regions, each of which has unique traditions, customs and often a number of dialects, with a different one usually spoken in each major city. Some regions have acquired ‘special status’ granting them independence from the central government both in financial and political matters.

The result is an extremely diverse geo-economic landscape. An organisation doing business in Italy will find differences amongst regions in infrastructure, sectors, and even employment laws. The difference between north and south can be particularly striking to a visitor. The north is highly developed thanks to the presence of heavy industry and private companies, while the south’s economy is welfare-dependant, mainly agricultural and sees high levels of unemployment.

 

Coliseum Hedda Gjerpen i Challenges of Doing Business in Italy

© istockphoto.com/ROMAOSLO

 

Undertaking a cross-cultural awareness training course such as Communicaid’s Doing Business in Italy programme will increase your organisation’s awareness and understanding of the country’s diversity and its inhabitants’ cultural influences. Intercultural training will help your organisation to operate more effectively in Italy while it will also provide your employees with the cultural knowledge and skills to navigate the cultural differences they are likely to face both in business and everyday practices.

The following are some key differences which might pose challenges for anyone doing business in Italy.

Affective Communication – An important aspect of Italian culture is openly expressing thoughts and feelings. Emotions tend to flow easily in this culture with lots of hand gestures and close personal contact. As a result, Italians are often guided by their feelings and establishing solid relationships based on trust are vital for successful business negotiations in Italy.

‘Bella Figura’ – The term ‘Bella Figura’, a key element in Italian business culture, is often used to describe the ability to present oneself well and behave with formality. In some areas of Italy, particularly the south, maintaining ‘Bella Figura’ is believed to enhance beauty and peace in the world. In Italian culture, appearances and opinions of others are considered extremely important. It is therefore vital when doing business in Italy to ensure that all presentations and business materials are aesthetically pleasing to your Italian counterparts. Furthermore, great detail is paid to the way one dresses so it’s important to consider your clothing carefully before doing business in Italy.

Individualism – While Italian culture has been described as highly individualistic, its not like the form of individualism that can be found in countries like the US, Australia or Sweden. In Italy it signifies a society that emphasises individual responsibility towards family and close friends, relying on a strong network of connections and close family ties. This means that Italians will tend to take care of themselves and their immediate family first. Across Italy you will find many Italian businesses owned by individuals and families. In a business context, individualism influences an Italian’s preference to do business with people they are already familiar with, and rely heavily on direct personal contact, often through mutual friends or acquaintances, to explore new business opportunities.

‘La Cordata’ (Chain of Command) – This concept tends to mean that only the most senior people in a company will make decisions, sometimes leaving those at a lower level with their hands tied. Non-Italian organisations may encounter a great deal of inflexibility when trying to reach a decision and get things done when doing business in Italy.

Thriving, modern and vibrant, Italy is a country with many faces. Romans and Etruscans made it their home, a base from which to conquer and unify Europe and the World. The remains of these ancient civilisations still pave the roads of Italian cities, yet the country today is a jigsaw of cultures and traditions, both ancient and new.

Organisations must be aware of this and the resulting cultural differences and challenges of doing business in Italy. Providing employees cultural awareness training like Communicaid’s Living and Working in Italy programme will give your organisation an essential head start and the competitive edge you need to be successful in the Italian business world.

© Communicaid Group Ltd. 2010

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Apr 17

Measuring the Benefits of Cross Cultural Awareness Training

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector No Comments »

Respondents to the 2008 Global Relocation Trends Survey Report conducted by GMAC rated cultural awareness training as the third most important initiative to increase ROI of international assignments. Despite these findings, many international companies are reluctant to provide cross cultural awareness training to their employees prior to relocating overseas, working across cultures, negotiating with foreign companies or employing international staff.

Those in favour of cross cultural awareness training will say that a lack of the cultural sensitivity it provides can result in a number of challenges when dealing with other cultures. These may include miscommunication, misinterpretation and perceived misbehaviour in international working settings which can lead to breakdowns in negotiations or business relations, diminished performances or unsuccessful overseas operations. Those who believe in the value of intercultural training programmes will therefore argue that this helps employers and employees to acquire the necessary skills to ease and overcome challenges rooted in cultural differences.

On the other hand, those who doubt the benefits of cultural awareness training will argue that, while it naturally comes at a cost, its benefits are difficult to quantify in monetary units, thus making it an investment difficult to justify, particularly in the current economic climate. They may claim that while international business ventures’ success can and should be measured in terms of real costs and benefits, culture is something too abstract to be measured, and its impact too difficult to assess.

 

Globe Kasia i Measuring the Benefits of Cross Cultural Awareness Training

© istockphoto.com/Kasia

 

As a global provider of cross cultural awareness training and consulting to major international organisations around the world, Communicaid has a good understanding of this challenge and has designed an approach that aims to make the outcome of cultural awareness training as tangible as possible to organisations.

Communicaid’s Impact Management process involves several key stages starting from before the training has even been delivered through to several weeks after training has been completed. Through a variety of questionnaires, assessments, interviews with delegates and line managers and action plans which can be integrated into personal development plans, Communicaid will design tailored options for every client based on what they need and the time they can realistically dedicate to evaluating the impact.

In an article about measuring the benefits of cultural awareness training programmes such as Communicaid’s Cross Cultural Training Middle East or Intercultural Training India programmes, John Schieman wrote, “Quantifying the business improvement from cross-cultural interventions is challenging, however it is clear that cross-cultural competence has the potential to make a significant contribution to top and bottom line results as well as individual performance.”

While pre and post-training impact evaluation cannot provide concrete monetary figures it does illustrate the importance of cultural awareness training and how it has helped to improve the corporate image and relationships with international counterparts. Companies doing business on a global scale must consider the high value of cultural awareness training to help reduce the risk of international business, saving them time and money in the long-run.

© Communicaid Group Ltd 2010

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