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Wednesday, May 28, 2008
 Topic: Cultural Awareness
Reference: Brown, Frank. “Cultural Capital in the C-Suite”. Chief Executive, April/May 2008, P. 22.
The rise of global business requires the increased capability to do business in other cultures, with different customs, and requirements. I know from experience that doing business in Mexico, Turkey, and Japan that major cultural differences prevail in each environment. No matter the size of the business or the industry, tools such as the Internet, Skype, EBay and others has made it affordable, advisable and profitable to reach potential customers around the globe. Besides the need to deal with currency issues, language barriers, and commercial risk, there is the need to address cultural awareness at the highest levels of your organization. That awareness may mean understanding the pace at which business is done; how seniority impacts discussions, and what constitutes agreement in principle. It may also mean the importance of socializing at different events, or of exchanging gifts prior to the initiation of discussions. Cultural awareness may also relate to political issues such as the role of women in business, relationships between different segments of the society, and general economic conditions. Obviously, the more that you know about a potential customer’s culture and operating environment the better off you are to service their specific needs. In the referenced article, the commentator, the dean of the INSEAD business school, identifies the importance of cultural sensitivity in the C-suite. “CEOs will continue to be challenged and expected to operate with a deep understanding of other cultures and business environments. An example is the recent opportunity Citi had to get much-needed investment from Abu Dhabi”. Because of these requirements the commentator foresees a growing need for senior executive talent that is recruited globally rather than regionally or based solely on industry. He also sees cultural capability as an important characteristic of business leadership. In the referenced article he states: “I constantly emphasize the importance of developing transcultural leaders with acute insight into their global marketplace who are as comfortable doing business in Mumbai or Tokyo as in London or New York”. I believe that cultural understanding is a growing factor for both public and private companies and that it needs to be addressed in your business planning, daily operation, and in your leadership. As global opportunity expands so will cultural demands. It is wise counsel to prepare for these opportunities well before the need arises. I am interested in your thoughts on how you are addressing this issue in your organization.
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