“Leaders who have the experience and skills to deal with teams characterized by diversity are in high demand” (Hassan & Ilyas, 2014).

Technology and globalization have made it possible for businesses to deal with stakeholders (clients, employees, third-party consultants, and so on) from other countries, meet organizational needs and increase competitiveness.

While a diverse, global environment usually can bring opportunities for new approaches, cultural problems can often arise that hinder productivity and cause problems within a team.

Whether you are a global company or a small start-up negotiating with people from other nationalities, it’s essential to promote cultural awareness and foster a more productive global workforce.

Define Culture    

Firstly, let’s address the definition of culture per se, and culture in relation to international business.

Culture is typically defined as a group of ordinary and accepted standards shared by a specific society. When you put that into a global business context, what one society considers professional may be different for another foreign society¹.

These differences might impact – for better or worse – a variety of areas such as verbal and non-verbal communication, decision making, leadership approaches, human resources management, work relationships, learning pace, among other areas².

Language differences within different cultures have been known to hinder effective communication. While English is common in business, not everyone is an English native speaker. As a second or even third language for some, different accents, word choice, and communication style may differ based on preferences.

As a consequence, misunderstandings become pretty common.

In India, business professionals typically communicate in nuanced and indirect ways. This is opposite to the Finns, who tend to be direct and brief in their communication1.

Research cultural and non-verbal cues      

Some cultures tend to use non-verbal communication like greetings, proximity, and gestures in ways that may be uncomfortable to others³. Researching proper business etiquette is essential. In most cases, you need to be extra observant of body language, and, it is always better to ask than commit a cultural faux pas¹.

Geographic location can also complicate project processes. If project stakeholders are in different countries, it can be difficult to schedule two-way communications during regular working hours. This requires some flexibility. Times, dates, and other units of measure can also be interpreted differently.

European Navigator: Demonstrating the value of a proven executable path forward

Building a virtual team is one area of consideration for firms operating in different areas of the globe. A virtual, remote team enables companies to foster greater diversity within their internal teams, the benefits of which are plenty. Having teams in different geographic locations will empower businesses to foresee cultural obstacles within cross-cultural teams before they occur.

Punctuality and organizational hierarchy     

When you deal with business partners, clients, or colleagues from the United States, South Korea, Japan, and Russia, you are expected to be on time.

In Germany, you are even expected to be at least 10 minutes early for your appointment.

Brazil is ambivalent. Colleagues could be late by a several minutes unless you indicate that they should follow the English time¹. It is also important to understand that cultural norms influence attitudes towards management and organizational hierarchy.

In some countries, junior staff may not be allowed to speak up during meetings. In some cultures, it is challenging to question decisions by senior managers or express opinions that are different from the rest1. Communication during negotiations should also be carefully considered.

Israelis and Americans are very direct, so you’ll know right away if the transaction is approved or not. The Japanese, however, tend to be indirect. You have to carefully interpret vague signs to see if they rejected or accepted your proposal, which of course, can be challenging¹.

—

Solem is a global life science company who deals with cultural diversity daily as our clients, partners, and employees are spread throughout the globe. Over the years, we have interacted with people from more than 10 different nationalities, including the United States, European countries, China, Brazil, among others. To overcome common culture barriers, we like to go by the following 6 rules from the book “The Challenge of Global Competition”: (1) Be Prepared, (2) Slow Down, (3) Establish Trust, (4) Understand the Importance of Language, (5) Respect the Culture, and (6) Understand Components of Culture.

Cultural diversity can impact the level of satisfaction, commitment, confidence, discrimination, and conflicts that could exist in a business setting. The result of such complexities could lead not just to poor communication, but also to deviations in behavior, poor performance, unclear objectives, strategy changes, turn over, and overall project complications. At Solem, we understand that cultural differences are sensitive topics, and those who take the time to address these differences will have a better chance of remaining competitive and thriving in the international business environment.

1. Smith, Seldean. The effects of cultural differences on global business. https://www.daytranslations.com/blog/culture-nuance-business/. June 11, 2021.
2. Project Management Institute. (2017). A Guide to the project management body of knowledge (PMBOK Guide) (6th ed.). Newtown Square, Pennsylvania: Project Management Institute.
3. Schwalbe, K. (2017). An Introduction to Project Management, Sixth Edition . Minneapolis, MN: Schwalbe Publishing .
4. Ball, M. F. (2002). International Business: The Challenge of Global Competition (8 ed.). New York: McGraw-Hill Education.