Power Distance in the Global Context: How business cultural preferences can directly impact your team’s ability to work together and communicate effectively.
When we talk about our own culture, it won’t seem like culture at all. It’s just the way things are. For example, if you’re American you believe everyone has a right to free speech and you think any thing else is a human rights violation. You also enjoy about two or three weeks of vacation each year. And you’re very prompt. You feel like your entire day is interrupted if someone’s late.
If you are Turkish, you know about free speech, but you probably don’t dare talk about it much. You are blissfully unaware that you have more official and not so official vacations than anyone else in Europe. And for you, time is fluid. Being half an hour late is fine, you don’t expect anybody else to be on time, so you plan on doing several things at once. These are examples of culture, and businesses have culture too.
Phil, a CEO at a US company, came to me telling me that they had outsourced all of their product development to India. But, they had a problem. They hadn’t met a single deadline in over a year. Product development was stalled. When I asked Phil what was wrong, he said the team in India was terrible at communication. They never raised a red flag if something didn’t make sense.
The problem is Phil was completely wrong. He was ascribing Western expectations to an Eastern team. The real problem was more complex, but the root of it was power distance. Power distance is the degree to which a boss and an employee are separated by society. And in the East power distance is very important. Employees can’t simply tell their boss that they think he is wrong. But Phil’s employees are rewarded for questioning and challenging and thinking outside of the box. He had no idea how unfamiliar this was for his India team.
We worked with Phil to develop a cross cultural training program. A year later, Phil’s company is doing great. Their new product just shipped and Phil told me that the team has hit every milestone perfectly. This is just a small part of how business culture can affect a global business. It’s why we created the business synergy compass; to guide businesses to success in the new global economy.