Krannert School of Management - World Citizenship

The writing is on the wall. If U.S. corporations plan to maintain a leadership role internationally, American employees must acquire a global perspective. For years, executives have questioned the return on investment for soft-skill education and in particular, scoffed at the idea of cross- cultural trainings. However, as our business world becomes increasingly interactive and internationally focused, culturally sensitive approaches are essential for professional and respectful communication.

Beyond raising corporate reputations to a more sophisticated level, cross-cultural education maintains profitable relationships. As many in corporate America already know, a single inappropriate e-mail, comment, or interaction can easily damage or even ruin an international relationship. Basic cultural education, such as knowing the significance of color selection when sending a package to Tokyo, understanding e-mail verbiage from Mumbai, realizing how to properly return a banquet toast in Shanghai, or learning how to better understand business norms in Cairo, not only cultivates and strengthens relationships, but also eliminates costly misunderstandings.

As global mergers, alliances, and agreements become common practice, the need for cross-cultural knowledge will become increasingly important at all levels. The clock is ticking, though, and the likelihood that we may have to learn cross-cultural awareness under extenuating circumstances is concerning.

For example, stories abound about Detroit-based Chrysler executives who struggled in Daimler’s culture. Not only were seasoned American executives surrounded by another language, leaders were stunned by German corporate norms and many floundered in their new environment. It’s hard enough to adjust to a new corporate culture during a domestic merger, but when a partner is from another country, an entirely new set of obstacles quickly becomes evident. It takes time for individuals, departments, and organizations to progress down the cultural learning curve.

In addition to the auto industry, U.S. airlines are rapidly falling prey to international competition. Anybody who travels regularly knows about large-scale airline alliances and growing service disparities between domestic and most international air carriers. U.S. airline personnel are ill prepared to understand and service a diverse clientele. The result — U.S. carriers are gaining an inferior service reputation in Europe and Asia and many American carriers are evolving into discount carriers to maintain market share abroad.

Most airline analysts are hesitant to predict if or when U.S. carriers can make a comeback and investors are avoiding the industry. Is this another example of an industry once dominated by us that will eventually succumb to foreign competition? How many other industries have to be affected before we react? Cultural ignorance is prevalent in many other parts of our economy — including pharmaceuticals, high tech, aircraft manufacturing, healthcare, and banking. When are we going to invest in educating our people and, more importantly, will we be too late?

We can put our ethnocentric tendencies aside and better connect with international partners and foreign investors — from fully understanding Japanese negotiation techniques and Chinese superstitions to Middle Eastern norms and South American communication styles. In addition, we can do a better job of bridging the cultural gaps by including outsourced workers (who typically provide customer service and reservations functions) into our cultural trainings and global networks.

However, it’s important to note cultural training is not limited to U.S. companies with international operations. Domestically, more of our customers, co-workers, and employees come from diverse backgrounds — other countries, cultures, and religions. Certainly all organizations can benefit from higher service levels, stronger teams, increased revenue, and a unified corporate culture.

Here is another key to global success — organizations should solicit and value input from all employees in all divisions. Although creating and facilitating international focus groups sounds like a simple task, the endeavor contains inherent challenges, including conflicting communication styles, differing cultural attitudes towards hierarchies, varying levels of fluency, and divergent cultural norms that inhibit communication.

The best way to maximize quality input from a diverse cohort is to hire focus group facilitators based on their individual understanding of cultural dynamics. Or better yet, as recommended in the Harvard Business Review (November 2006), contract the endeavor to an outside consultant; when dealing with multicultural teams, outside consultants don’t represent a hierarchical threat and focus group participation increases.

The time is now to raise the bar for American business. The formula for success is simple: quality cultural education and cross-cultural focus groups. Follow the lead of companies like Coca-Cola and Microsoft and get on board. Without a doubt, it’s one of the best investments to position your company as a savvy and sophisticated leader.

About the columnist

William Sinunu is a multilingual “citizen of the world” who has lived in or traveled to more than 100 countries. The best-selling author of Life Could Be Sweeter and The Sweet Life, Sinunu has facilitated workshops for multinational corporations and at international conferences and top-tier universities around the world.

Sinunu, who earned a bachelor’s degree from Krannert in 1982, is a University of Chicago-trained clinician and former JetBlue Airways executive who was instrumental in developing and supporting the company’s customer-focused culture. In addition, he has consulted for the U.S. Department of Human Services and was a translator for the Department of Immigration and Customs.

For more information, including details on Sinunu’s new “Globally Speaking” seminar, visit williamsinunu.com.