Cross-Cultural Leadership Skills for a Multicultural Canada
HRVoice.org | February 21, 2011 | no comments
By Tim Jackson and Erik Girard
It used to be that stories of how leadership styles differ across cultures came mostly from expatriate executives returning home from assignment. They would say that Japanese managers visit the ill family members of their employees; Italian managers openly challenge and show disdain for rules; Middle Eastern leaders ignore efficiency to spend more time building relationships within their teams.
But times have changed, and you no longer have to take an international assignment to lead a group of people from a different cultural background as you. Organizations are increasingly multinational in scope, operating subsidiaries and establishing reporting structures across several cultures, making global work teams the new norm. Even Canadian business people working domestically often lead cross-cultural teams here at home due to the exploding cultural diversification within the Canadian labour market.
Indeed diversity is growing by leaps and bounds in the Canadian workplace. The vast majority of people who come to Canada do so to work. According to government statistics, economic immigrants (those selected for their potential contribution to the economy) dwarf the number of all other categories of immigrants combined (e.g., family class, refugee). In anticipation of greater numbers of baby-boomers beginning to leave the labour force, the competition for skilled workers is heating up. Canada and other countries have been positioning themselves as attractive destinations for talented immigrants. In response, the number of economic immigrants coming to Canada is surging. Between 1999-2009, there were on average of 138,389 economic immigrants admitted per year to Canada, while during the previous decade (1988-1998) that number was only 101,525. Recent landings are dominated by entrants from Asia, followed by growing numbers from the Middle East, North Africa, and South and Central America.
Trends in diversity in Canadian workplaces and communities suggest that organizational leaders will need to deepen their understanding of other cultures to maximize their effectiveness. To identify which leadership behaviours might resonate across all cultures, and which ones might gain traction only within specific cultures, a consortium of international researchers combined forces to conduct the ‘Manhattan Project’ of cross-cultural leadership studies. The GLOBE research program, led by renowned leadership scholar Robert House (University of Pennsylvania), involved 17,000 managers, in 951 organizations, across no less than 62 countries.
The study collected empirical data to answer the question of what are the universals of leadership, and by contrast what are the leadership styles that only some cultures prefer. Their findings form a list of sacred do’s and don’ts for leaders across the world. First the universals – behaviours that all people agree, no matter what culture a leader hails from, should be practiced or avoided:
Universal and Positive – Leadership behaviours endorsed as positive across all 62 countries studied:
- Integrity (being trustworthy, just, and honest)
- Charismatic-visionary (having foresight and planning ahead)
- Charismatic-inspirational (being positive, dynamic, and motivating)
- Team-building (being communicative with others, sharing information, mediating conflict, showing diplomacy and coordinating others)
Universal and Negative – Leadership behaviours endorsed as negative across all 62 countries studied:
- Self-protective (being a loner and asocial)
- Malevolent (being non-cooperative and irritable)
- Autocratic and Dictatorial
The GLOBE study also provides guidance on what leadership behaviours might be effective only in specific countries or cultures. Below are some culture-specific leadership tips:
China (note, these apply most to the Shanghai region):
- Chinese employees may expect leaders to form strong, even emotional bonds with in-group members, and to maintain harmony within the in-group at all costs.
- Chinese employees may not expect their leaders to communicate with them in a direct fashion. Because harmony among in-group members is so important, Chinese leaders tend to speak more indirectly (sometimes using parables and metaphors), compared to leaders from North America.
- Brazilians dislike leaders who are independent, individualistic, and make decisions on their own. They strongly prefer participative decision-making, and leaders need to take extra care to include the team in this process.
- Brazilians may expect their leaders to maintain harmony within the in-group, but may also expect them to be a provocateur, or inducer of conflict with those outside the group.
- Egyptians have more respect for the power differences afforded to leaders over followers, and so may be more tolerant of leaders who make unilateral decisions (compared to North Americans).
- An informal leadership style when building rapport with followers (as is more common in North America) may be seen by Egyptians as a sign of weakness. Egyptians want to see their leaders as authoritative, strong, and masculine, but yet also caring, benign and paternalistic.
Cultural boundaries will continue to break down due to the expansion of global business. If leaders can appreciate how culture influences perceptions of leadership effectiveness, they can adjust their style to produce the maximum impact and the best business outcomes.
Tim Jackson, Ph.D. is a consultant with Jackson Leadership Systems Inc., located near Toronto. He advises organizations on leadership assessment, selection, development and succession management solutions. A full bio is available on LinkedIn and you can follow him on Twitter (@jacksonlead). Email: firstname.lastname@example.org.
Erik Girard, M.A., has analyzed labour market and immigration policy at the Canadian federal and provincial government level. He completed his graduate studies at the University of Guelph, specializing in the labour market integration of skilled newcomers to Canada.
Tags: diversity, Erik Girard, featured, Leadership, multicultural, Tim Jackson
Do business leaders and HR departments pay sufficient attention to equipping people preparing for international assignments, as well as managers leading cross-cultural teams, with sound cross-cultural leadership skills? Research conducted at Dutch Neyenrode Business University suggests they don’t. And that’s a pity, the same research points out: costs related to failed international assignments are sky high, while the one secret ingredient that turns the odds in favor of success – developing the right cross-cultural mindset – is something that can be trained and coached.
In our fast-paced globalized economy, international assignments are on the rise. According to KPMG’s yearly survey of global assignment practices, companies generally make it easier for employees and their families to work and live abroad, both for short- and longer-term assignments. They also invest significant amounts of time and money to make expatriate assignment a success.
Unfortunately, says Dutch economist Matthias Spaink who recently presented the results of his PhD study on “Characteristics of Intercultural Competence among International Business Assignees”, many such international assignments fail. ‘Failure rates of expatriate assignments have been estimated anywhere in between 16 and 50 percent, with financial consequences ranging from $200,000 to $1.2 million’, according to Spaink. Failed cross-cultural assignments can be very painful for the expat and his or her family, returning home without a sense of accomplishment. And they are always painful for the company concerned, both in terms of direct costs and in terms of reputational damage.
‘So what went wrong?,’ the question then becomes. Neyenrode’s Spaink, himself a seasoned businessman, decided to dig into the subject. ‘I wanted to provide more insight in key factors determining intercultural competence among Western international assignees, so that Western multinational companies can improve their decision making on both selection and training/development of international assignees, ultimately leading to reduced failure costs related with failed international assignments.’
What does his research (click here for background information) tell us? What determines a person’s effectiveness in cross-cultural business situations?
People will be most successful in cross-cultural business situations, the study finds, if they possess, or develop, the following leadership characteristics:
- A curious mind;
- Explorer’s mentality;
- Emotional intelligence;
- The genuine will to understand what lies behind the habits, traditions and patterns of interaction that are different from one’s own (‘the curiosity and will to understand what’s different should be positive, open, and nonjudgmental,’ Spaink adds);
- A sense of humor (humor, even mixed with self-mockery, can take away a lot of tension);
- Strong self-identity (self-reflection and self-knowledge, combined with awareness of your own cultural identity and the way you perceive other cultures and differences).
The key ingredient determining success in unfamiliar cultural settings is: MINDSET.
Sounds logical, right? And yet, companies pay very little attention to this aspect according to Spaink (which is in line with what I witness when supporting multinational companies and their leaders in improving cross-cultural effectiveness).
Not in the recruitment & selection process, where the focus is mainly on technical and functional competences.
Not in training & development processes. These traditionally focus on knowledge and skills as key elements of expat trainings. In fact, the development of attitudes is equally, if not more, important. Most importantly attitudes like “being open for the unexpected”, “strong self identity” and “seeking for diversity”.
In other words, preparing people by simply training the do’s and don’ts of cultural etiquette is not enough.
Cross-Cultural Booster Programs (find out more)
I see a huge potential for companies to increase their success in managing international expansions and assignments, and the cross-cultural challenges these bring. It is essential to pay more attention to stimulating people to develop an effective cross-cultural mindset. By incorporating this in the learning & development processes of the organization, by making it an important aspect of leadership development and team development programs. Not by focusing only on training, but by also putting in place on the job coaching and mentoring programs. And I mean coaching and mentoring in which the leaders of the organization play a central role.
Leaders who are able to support and coach their people and teams to deal effectively with cross-cultural challenges will boost the company’s success (read more here).
What are your thoughts? Do companies pay enough attention to developing cross-cultural competence? What is your experience?Like this post? Share it with others!Join us and register at the top of this page to stay up to date with LeadershipWatch articles and news. Your personal information will be kept strictly confidential.
Photo: Hey Paul/Flickr (Creative Commons)
Aad is a global business advisor, change leader, executive team facilitator, leadership coach, and frequently asked keynote speaker. He is founder and managing partner at HRS Business Transformation Services where he works with senior executives and leadership teams globally in three key domains: ‘leading complex change’, ‘cross-cultural leadership’, and ‘post-merger integration’. Find out more about Aad and HRS’ services. If you would like to invite Aad to your organization contact us.
Category: Cross Cultural Teams, Leadership, Leadership Development, Leadership Skills Tags: Coaching, Cross-Cultural Communication, Cross-Cultural Leadership, Cross-Team Collaboration, HRM, Multinational Corporation, Talent Development