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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 »

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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

Tagged with: Arriva • Cross cultural awareness training • cross cultural training for mergers and acquisitions • Deutsche Bahn • German business culture • intercultural training • International M&A • Managing Multicultural Teams • UK Business Culture

Apr 26

Multicultural Teams: Cross Cultural Approaches to Time Management

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 »

Everyone has heard the expression “Time is money”. This saying has an equivalent in most languages, demonstrating that the concept of time plays an important role in business cultures across the globe.

Modern Western business, in particular, considers the efficient use of time as a measurement of success. For example, if a project is not completed by the agreed date, the company will lose profit and its reputation will suffer. However, other cultures take a different approach to time management. Some Eastern cultures, such as India and Japan, tend to favour the coordination of tasks rather than tackling them sequentially.

Cross cultural awareness training provides an introduction to the concepts of time and how they differ across cultures, providing you with a better understanding of what to expect when working with international counterparts.

One cross cultural theory about time that intercultural training covers was developed by Edward T. Hall, an American anthropologist and cultural expert. Hall distinguished between monochronic and polychronic views of time. For example, when doing business in Germany or the US, both monochronic cultures, you will find that your counterparts tend to consider that time is wasted unless decisions are being made and actions are carried out. The task is the priority and communication between colleagues is often direct and to the point.

However, in polychronic cultures like India, time is not perceived as a number of slots where each is presented by a definite task that needs to be tackled sequentially. Instead, when doing business in India, you will find their polychronic approach to time is much less driven by a need to get things done on time and more by the fact that things are done and harmonious relationships are maintained throughout the process.

The difference in these cross cultural approaches can create significant challenges for anyone working in a multicultural team. When your multicultural team members have attitudes to time that are similar to yours, coordinating projects can be relatively problem-free. However, when your team members from different cultures view time differently, issues relating to planning, decision-making or project deadlines can often lead to frustrations caused by miscommunication and mismatched expectations.

For example, a German working on a multicultural team with Indian nationals may become frustrated by what he perceives to be indirectness or lack of urgency in his colleagues. Conversely, the Indian team members may feel that their German counterparts come across as being pushy and fail to consider the harmony of the team.

Another clear illustration of contrast between these two attitudes to time can be found in comparing the American and Japanese modes of production. The American model, credited to Ford, is a linear production line, with one task following another until the product is finished. The Japanese, however, initiated the ‘just-in-time’ model, credited to Toyota, in which production is synchronised to allow the company to minimise waste and be responsive to demand.

These are just a few examples that show how attitudes to time can present challenges and benefits for multicultural teams. The challenges and advantages that different attitudes to time can create are numerous and can have a clear negative or positive impact on multicultural teams and the success of the projects that they work on. By participating in a Cross Cultural Training course such as Working across Cultures or Intercultural Training Germany, multicultural teams can develop strategies to not only cope with their differences but harness them for more effective team working and productivity.