HBR's 10 Must Reads on Managing Across Cultures (with featured article "Cultural Intelligence" by P. Christopher Earley and Elaine Mosakowski). Harvard Business Review

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HBR's 10 Must Reads on Managing Across Cultures (with featured article

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full of businesspeople unconcerned with a company’s solvency. Nigel’s Saudi upbringing had made him aware of Islamic principles of personal responsibility to the wider community, while his British origins tempered what in another person’s hands might have been the mechanical application of those tenets. Throughout the negotiations, he displayed an authoritative style appropriate to the Pakistani setting. In relatively short order, the managers and the family agreed to terminate operations.

      Many managers, of course, are a hybrid of two or more of the types. We discovered in our survey of more than 2,000 managers that even more prevalent than the ambassador was a hybrid of that type and the analyst. One example was a female African-American manager in Cairo named Brenda, who was insulted when a small group of young, well-meaning Egyptian males greeted her with a phrase they’d learned from rap music.

      “I turned on my heel, went right up to the group and began upbraiding them as strongly as my Arabic would allow,” she said. “When I’d had my say, I stormed off to meet a friend.”

      “After I had walked about half a block, I registered the shocked look on their faces as they listened to my words. I then realized they must have thought they were greeting me in a friendly way. So I went back to talk to the group. They asked me why I was so angry, I explained, they apologized profusely, and we all sat down and had tea and an interesting talk about how the wrong words can easily cause trouble. During our conversation, I brought up a number of examples of how Arabic expressions uttered in the wrong way or by the wrong person could spark an equivalent reaction in them. After spending about an hour with them, I had some new friends.”

      Brenda’s narrative illustrates the complexities and the perils of cross-cultural interactions. The young men had provoked her by trying, ineptly, to ingratiate themselves by using a bit of current slang from her native land. Forgetting in her anger that she was the stranger, she berated them for what was an act of cultural ignorance, not malice. Culturally uninformed mimicry got the young men in trouble; Brenda’s—and the men’s—cognitive flexibility and willingness to reengage got them out of it.

      Cultivating Your Cultural Intelligence

      Unlike other aspects of personality, cultural intelligence can be developed in psychologically healthy and professionally competent people. In our work with Deutsche Bank, we introduced a program to improve managers’ work relationships with outsourcing partners in India. We developed a two-and-a-half day program that first identified a participant’s strengths and weaknesses and then provided a series of steps, which we outline below, to enhance their CQ.

      Step 1

      The individual examines his CQ strengths and weaknesses in order to establish a starting point for subsequent development efforts. Our self-assessment instrument is one approach, but there are others, such as an assessment of a person’s behavior in a simulated business encounter and 360-degree feedback on a person’s past behavior in an actual situation. Hughes Electronics, for example, staged a cocktail party to evaluate an expatriate manager’s grasp of South Korean social etiquette. Ideally, a manager will undergo a variety of assessments.

      Step 2

      The person selects training that focuses on her weaknesses. For example, someone lacking physical CQ might enroll in acting classes. Someone lacking cognitive CQ might work on developing his analogical and inductive reasoning—by, for example, reading several business case studies and distilling their common principles.

      Step 3

      The general training set out above is applied. If motivational CQ is low, a person might be given a series of simple exercises to perform, such as finding out where to buy a newspaper or greeting someone who has arrived to be interviewed. Mastering simple activities such as greetings or transactions with local shopkeepers establishes a solid base from which to move into more demanding activities, such as giving an employee a performance appraisal.

      Step 4

      The individual organizes her personal resources to support the approach she has chosen. Are there people at her organization with the skills to conduct this training, and does her work unit provide support for it? A realistic assessment of her workload and the time available for CQ enhancement is important.

      Step 5

      The person enters the cultural setting he needs to master. He coordinates his plans with others, basing them on his CQ strengths and remaining weaknesses. If his strength is mimicry, for example, he would be among the first in his training group to venture forth. If his strength is analysis, he would first want to observe events unfold and then explain to the others why they followed the pattern they did.

      Step 6

      The individual reevaluates her newly developed skills and how effective they have been in the new setting, perhaps after collecting 360-degree feedback from colleagues individually or eavesdropping on a casual focus group that was formed to discuss her progress. She may decide to undergo further training in specific areas.

      Confidence Training

      HELMUT WAS A MANAGER at a Berlin-based high-tech company who participated in our cultural-intelligence training program at London Business School. Three months earlier, he had been assigned to a large manufacturing facility in southern Germany to supervise the completion of a new plant and guide the local staff through the launch. Helmut came from northern Germany and had never worked in southern Germany; his direct reports had been raised in southern Germany and had worked for the local business unit for an average of seven years.

      Helmut was good at developing new learning strategies, and he wasn’t bad at adapting his behavior to his surroundings. But he had low confidence in his ability to cope with his new colleagues. To him, southern Germans were essentially foreigners; he found them “loud, brash, and cliquish.”

      To capitalize on his resourcefulness and build his confidence, we placed Helmut in heterogeneous groups of people, whom we encouraged to engage in freewheeling discussions. We also encouraged him to express his emotions more openly, in the manner of his southern compatriots, and to make more direct eye contact in the course of role-playing exercises.

      Helmut’s resourcefulness might have impelled him to take on more ambitious tasks than he could quite handle. It was important he get his footing first, so that some subsequent reversal would not paralyze him. To enhance his motivational CQ, we asked him to list ten activities he thought would be part of his daily or weekly routine when he returned to Munich.

      By the time Helmut returned to London for his second training session, he had proved to himself he could manage simple encounters like getting a coffee, shopping, and having a drink with colleagues. So we suggested he might be ready for more challenging tasks, such as providing face-to-face personnel appraisals. Even though Helmut was skilled at analyzing people’s behavior, he doubted he was equal to this next set of hurdles. We encouraged him to view his analytic skills as giving him an important advantage. For example, Helmut had noticed that Bavarians were extroverted only with people familiar to them. With strangers they could be as formal as any Prussian. Realizing this allowed him to respond flexibly to either situation instead of being put off balance.

      By the time he was asked to lead a quality-improvement team, he had concluded that his leadership style must unfold in two stages—commanding at the outset, then more personal and inclusive. On his third visit to London, Helmut reported

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