Cultural Risk Management Part 2 by Glen Burridge: Deadly Assumptions

Now, I hope I started to frame this last time, but let’s take that first assumption and look at some practical evidence of why it needs dispelling. This won’t be the normal size of my blogs. This is just too important an subject. But stick with me….

Assumption No. 1    “This topic has little or no effect on my world: I have more important things to worry about”

This is so big I’m going to break it down into two parts.

Part I: Every Human Grouping Has a Culture

Let’s start with internal culture, the one that exists in every grouping or organisation of human beings on the planet. This is the aspect most people are familiar with.

In the world of business, the evidence of its importance is legion and its consequences run from operational ineffectiveness through to life and death:

  • In a 2008 survey of more than 1500 industry executives, IBM found that roughly half of all projects fail due to “company culture”

http://www-935.ibm.com/services/us/gbs/bus/pdf/gbe03100-usen-03-making-change-work.pdf

  • Deloitte ‘Core Beliefs & Culture’ survey from 2012 illustrates the power a corporate culture has on how happy and valued employees feel:

https://www2.deloitte.com/content/dam/Deloitte/global/Documents/About-Deloitte/gx-core-beliefs-and-culture.pdf

Exc orgs 

  • The Final Report on the Investigation of the Macondo Well Blowout by the Deepwater Horizon Study Group (2011), one of the worst industrial accidents in of recent years:

“It is the underlying safety culture, much of it so ingrained as to be unconscious, that governs the actions of an organization and its personnel. [These are] cultural influences that permeate an organization and an industry and manifest in actions that can either promote and nurture a high reliability organization with high reliability systems, or actions reflective of complacency, excessive risk-taking, and a loss of team situational awareness.”

http://ccrm.berkeley.edu/pdfs_papers/bea_pdfs/dhsgfinalreport-march2011-tag.pdf

We also know that increasing the variety of the people who make up an organisation, in terms of the most fundamental traits, has a positive impact:

Diversity

http://www.mckinsey.com/business-functions/organization/our-insights/why-diversity-matters

And you don’t have to take my word for it, listen to what these two men have to say about the topic of organisational culture, who know a thing or two about running a business….

“The only thing of real importance that leaders do is create and manage culture. If you do not manage culture, it manages you, and you may not be even aware of the extent to which this is happening”

Edgar H. Schein. Renowned American organizational psychologist, Emeritus Professor of Management at the MIT Sloan School of Management

“Culture eats strategy for breakfast”

Peter Drucker. 20th Century business management guru and writer

The ends might be different, but the same undoubtedly goes for the public sector and our governments. Any listing of the largest organisations on the planet,

e.g. https://en.wikipedia.org/wiki/List_of_largest_employers

is dominated by state-driven entities. Just contemplate the complexity and cultural diversity – in every sense – of a collection of several million employees represents for a moment. By any standards, these are equivalent to nation states in themselves. Even a several thousand employee organisation will have its own clans, power struggles and centres, outlying regions, dialects and a clear sense of norms and networks of communication and action.

Part II: When Worlds Collide

For an organisation that remotely cares about its interaction with its operating environment, it’s very tempting, especially for a commercial entity, to simply state that what’s important above all is their relationship with their customer(s). This makes complete sense…..on the face of it, but the correlation between corporate health is mixed, as examples:

The truer reality is any organisation, whether public or private sector, sustains its existence with its overall relationship with its operating environment.

Crudely speaking, it is fed by a demand from within that space, whether it be from a market or a power centre. Its survival may assured through various means: extracting profits, exchanging goods, offering expertise, a social contract, acting on behalf of a governing mandate or through distributing services altruistically, among other things.

Whatever your organisation does, it will inevitably be interacting with others, no matter what your or their motives. And each will possess a culture(s) which will never switch off, constantly interplay and collectively shape a new reality.

The trouble is that if you ask a random person on the street what “inter-cultural relations” are, chances if they have the patience, they’ll figure out more or less what it should mean. However, except for those working in certain fields, it’s far less likely to be something they systematically think about much and there is even less chance they claim it as an area of expertise deployed on a frequent basis.

Even those who are consummate interculturalists most likely don’t name it and will often put it down to “good personal qualities” or the like. The idea that groups they belong to are actively engaged in such issues will take some head scratching. Even though the consequences may be very apparent to them, only if pushed, are they likely to bring the C-word into it. And don’t be surprised if – even if you get here – when they refer to culture, they will be exclusively talking about ethnic or national ones (…we’ll get to that, in a bit).

It’s not that Culture isn’t ever-present or of capital importance, it’s that most people are simply not taught to frame relationships in intercultural terms, which is tragic since its master practitioners literally save the world or, at the very least, your world every day. Each diplomat who recognises that the point being made in a treaty negotiation stems from a deep-seated historical perspective born of an ancient sleight, each business person who realises that a sale needs to occur in a certain pattern to gain trust in this market, each presenter who outlines their arguments in a way which reaches out to a colleague from another discipline…..they are all making the world an easier place to live in and moving forward human progress. Belligerent, selfish or malignant actions taken in the world are, by definition, anti-intercultural in that they drive away mutual comprehension and productive co-existence.

Yes, I told you this stuff was important, didn’t I?

Maybe it is my training as a geophysicist, but I like to think of the inter-cultural relationships acting as a wave-field. Like the sun’s energy that bathes us, culture is something we are constantly bathed in. The spectrum frequencies change slightly with every moment, but it is inescapable and complex, but if you make an effort to understand it, it is something you can harness for all sorts of good.

We’ll get back to what goes into that ocean of waves, but for moment I just make one plea – don’t limit your thoughts on this subject to flags, languages or belief systems. There are complete strangers you can meet from the other side of the world who you will have instant an instant cameradery with, based on affinities that go well beyond those factors. Have a think….

Now, if you still don’t think this subject is of capital importance, take a look at this list: https://en.wikipedia.org/wiki/List_of_cognitive_biases

Culture plays a significant and inescapable role in pretty much any one of these effects that warp and shape our activities. Go through any of them in your professional life and see if you can think of an event where you saw this effect in play.

And now, count up the cost…..in money, reputation, uncertainty and RISK.

Billions of $’s in accumulated financial losses have resulted from not adequately addressing for this element of risk, hard-earned standing and reputation has been dissipated and yes, many lives lost. And what’s worst is that it, if deployed, it presents one of the greatest opportunities for all-round gain and it is sitting in plain view to any organisation that decides to engage with it.

That’s where this concept of Cultural Risk Management sits, right under each of the human behaviours that influence the full sweep of your organisation’s operations.

Talk to the AuthorGlen Burridge. For a discussion of the topics raised in this article and associated blogs, please feel free to get in touch with Glen at glen@glenburridge.com or via LinkedIn.

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Cultural Risk Management – Part I of a new series by Glen Burridge

This is the first of a series of articles where Interculturalist and Earth Scientist Glen Burridge be looking to highlight a topic that confronts us every day in all aspects of our lives and yet is frequently neglected by both organisations and individuals: Cultural Risk Management

Crowd. A large group of people of a white background.

If we have one characteristic as humans that represents both our greatest capability and our greatest weapon it is our ability to self-organise.

In other words, to create cultures.

In these groupings, we become actors in the world, through our organisations, societies, tribes, networks and communities. Through them, we trade and we exchange, we engage in conflict and war and we create things of beauty and value. In doing so, they form the basis of our identities and influence our behaviour at every moment. Some stem back to the origin of our species, while others are bubbling up as we speak.

Culture as Lifeform

We may do our best to romanticise them, especially those identities to whom we belong and find the most meaningful, yet a culture is – at best – no more than a meta-stable life-form. As ambient conditions vary, vulnerable cultures die, a few coalesce, whilst others are born. They are susceptible to changes in the environment, undergoing perpetual fashioning by external challenge and interaction – an analogy with viral behaviour would not be unfair – and our increasing connectivity with each other accelerates this process.

History tells us that cultural ‘entropy’ has operated since our earliest times: As human populations have expanded and come in closer proximity, there is a tendency for any extensive culture to produce homogenisation of society in their image. In order to survive the onslaught, any target community will require strong traits – either of adaptability, invincibility, suitability or to defy the threat by virtue of distance or size. There are moral and practical consequences to what is lost and gained by such an organic course, but it could be argued that this is simply the to-and-fro of natural selection at play; a culture is no more than an elegant ecological solution to a problem at a given time.

Whatever their origins and health, what the human story makes abundantly clear is that the simultaneous greatest threat to our future wellbeing and opportunity for positive development comes from the interaction between cultural groups. This is where interculturalists operate and (ought to) have a capital role to play in our future.

Yes, it really is as important as that.

Limited Space

The Earth, at present our sole home, has a surface area of 510 million square km. That might sound like a lot to you and me, used to possessing only an infinitesimal morsel of that terrain, but of that immense expanse only roughly 20% is habitable. In terms of the volume of our planet, only a fraction of 1% is a survivable biosphere. We are currently adding over 200,000 extra people per day to that space.

It pays for us to get along well with each other.

The Other

Cultures, with their attendant values, motivations and artefacts will come and go, but the perennial question that matters is whether these groupings – and their representatives – are able to find a common basis in which the existence of the Other is not a accompanied by fear. No group is ever going to fire a nuclear warhead deliberately at itself, it will always be at an Other. ‘Civil’ Wars are anything but civil. They entail the disintegration of the façade of a collective identity under exterior pressure or internal reckoning.

Equally, all valuable endeavours we embark on culminate, in some form, in a collective effort. At all scales of our lives, this entails an association of existing bodies, whether they are political, commercial, humanitarian or social. We therefore know we are going to face a myriad of interfaces in much of what we do. We ought to be prepared. Any organisation that neglects the multiple dimensions and effects of culture is ignoring not only its own DNA, but that of the environment it operates in.

Yet, despite a whole field of solutions that now stretch back more than half a century, the risk associated with cultural interactions remains the one we are collectively most reluctant to address in business and in the world at large.

The worst kind of success

The worst kind of failure is when we ignore a critical factor that was staring us in the face all along. The worst kind of success is one achieved without the capacity to repeat it, carrying threats into the very next situation we find ourselves, but now with a perilous confidence, until the moment of drama when we realise we have made a serious misjudgement, when it becomes no longer a risk, but history.

In the following articles, Glen will open up the discussion to explore further dimensions of cultural risk, how deeply it reaches into our lives, society and business, which go far beyond the familiar cultural realm of national identities.

For a discussion of the topics raised in this article and associated blogs, please feel free to get in touch with Glen at; glen@glenburridge.com or via LinkedIn or leave a comment below.

glenEarth Scientist and Interculturalist, Glen Burridge

 

 

Polish Heroes A Book review; Tim Bridgman “Positively Disappointed – Business Across Cultures in Poland”, Szkolenia Lodz, 2015

When I was handed the manuscript for Positively Disappointing, I thought the title was brave. Having personally experienced the negative language and assumed pessimism of Poland’s neighbour, The Czech Republic, some 20 years ago, I was keen to read of Tim’s experience and his analysis of the country’s culture as it exists in modern regional Poland.

The Culture of Poland

The Culture of Poland

This short and pithy book has 9 fictionalised stories that are based on the author’s real life experiences over the last decade.

By not attempting an opus major or tackling the whole of Polish culture, Tim has given us an accessible doorway via a foreigner’s Polish experience. With chapters about the ordering of coffee, being a disappointed vegetarian or, the enthusiastic cyclist, taking his life literally in his hands, Tim filters his perceptions through Hofstede’s dimensions and allows us to draw our own conclusions.

The main thrust of the book is post-Soviet Poland’s EU membership, the outflow of Polish talent and the influx of foreign investment. The author develops an argument for a genuinely changing culture with the challenges this presents for both foreign and Polish managers running businesses and leading people in markedly different ways.

The book works because of Tim’s vulnerable and honest confessions – the mistakes of a naïve outsider, and his even-handed treatment of the stories that are remembered.

The beginning of the book gives lesser-known historical facts – the post-war persecution of a Ukrainian minority and the expulsion of the sizeable German population.

I found the book to be a little light on the specific inheritance of the Soviet years and not to say enough about the catholic contribution to the Polish psyche. Having said this, the tome achieves its objectives and stimulates the mind whilst informing the reader about the local zeitgeist.

Who should read this book?

British and overseas managers who have worked for a couple of months in Poland and overcome their initial trauma will benefit from picking up this book, enjoying the stories and contemplating answers to the questions posed at the end of each chapter.

An English – Polish glossary is a very sensible addition and makes this sometimes esoteric book easily accessible to any Pole that wishes to see the foreigner’s point of view.

In conclusion, the author has done Poland and foreign managers a favour by producing a functional book that combines fact, reflective exercises and stories that can genuinely help build bridges across nations and prevent a few escalating culture and commercial clashes in regional offices around Poland.

The book comes out in February –