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I’ve found the best quote in this article to be “Unless a company can connect diversity to business goals, it’s tough to keep investing in it.”

The only real business solution to diversity is to 1) recognize the differences, 2) link those differences to one’s own behavior and 3) integrate this behavioral change into business processes. This way it is possible to use the differences inherent in diversity to generate added value. This makes diversity investment a true investment that delivers returns, rather than a cost. Even more importantly, it justifies even more investment when times are tough, rather than reduction.

Read more: The business case for diversity – Washington Business Journal

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This question was placed on De Baak International’s LinkedIn Group page in reference to the Dutch doing business with Indians. Armijn Peltekian of NexusNovus gave a detailed, very complete and, in my opinion, spot-on answer that deserves a wider audience. I’ve reprinted it below:

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[It] is of great importance to understand the socio-cultural differences that exist between the two countries. However, India is immensely multicultural with a large number religions, castes, sub-castes and regional differences. To generalize all Indians as equal in terms of politeness, humility and sensitivity would be an error. In my opinion the most important lesson to be learnt is that since you have to deal with a vast array of cultural differences, your approach needs to be tweaked on a case-to-case basis.
Experience is crucial when conducting business in India. SME’s in general neither have the required in-house experience, nor can they afford to hire an experienced expat to conduct business functions for them on location. The task of facilitating an effective entry into India would prove to be extremely challenging to them.
MNC’s too, face a number of problems, particularly in management styles. Deputing an inexperienced expat to carry out necessary business functions in India very often fails to generate expected results. This boils down to the cultural differences as mentioned by [a previous respondent]. A very direct style of management might be counter-productive. The cost perspective of Dutch managers is quite off from the point of view of the existing reality as costs are generally much lower in these regions. However, many managers fail to understand the extent to which the costs are lower. In India, it would be a grave error to come across as one who gives in to unnecessary splurges. To pay “too much” for something is a sign of weakness. Hindustan Lever (now Unilever), McDonalds and Maruti-Suzuki, have attained their position of success due to the fact that they have completely Indianized their functions and processes.
[The original question] however questions whether the Dutch will have the skill sets to compete in a new (flat?) world. In my opinion, the greater majority of people in Europe lack the skill sets required to conduct business efficiently in Asia. But with the rise of the new economies there will be a large premium on people who have acquired these skill-sets and this will result in adjustments/ training for people currently lacking those skill-sets. If one takes some historical aspects into consideration, throughout past centuries the Dutch have been able to trade with many different Asian and African countries as well as all different cultures contained within Europe. If that teaches us anything, it shows us that these skills-sets can be acquired.
To conclude, India is extremely multi-cultural, multi-ethnic and multi-religious. Your approach needs to be custom designed on a case-to-case basis, and to do this, one requires a great deal of experience. Entry into India can be tough for SME’s due to cost restraints and lack of experience. MNCs do face hardships as well due to the large cultural difference that exist, as mentioned by [the previous respondent]. I also feel that Europe currently has a lesser focus on India than America does. Outsourcing and the flat world are well known concepts in those regions. Europe has not yet been exposed to India to the extent that America has, but that is rapidly changing. I fail to recognise any factors that would inhibit The Netherlands in any attempt to reap the benefits of lower sourcing costs and tremendous market potential of India.

“Gretchen am Spinnrade”

I’ve never seen Goethe’s “Faust” used to describe expat training, but this says a lot about Germany. It’s a description for expat and/or multicultural team training that refers to the “Gretchen question” in Goethe’s “Faust”. For those of you who have forgotten your college lit courses (or perhaps used one too many Cliff Notes instead of doing the required reading), the charachter Gretchen asks Faust if he believes in God and he does not know how to answer the question satisfactorily. The Gretchen Question (“Gretchenfrage”) is used ideomatically in modern German to refer to a question of great importance with a difficult answer.

But that’s not the point of this blog post. The point is: Germany has a great wealth of cultural heritage that they are justifiably proud of. In just about every art that you can think of, the greats that Germany produced throughout the centuries make one realize that there must have been something in the water, so to speak, that led to genius. This is not at all taken lightly by present-day Germans and, when doing business in Germany, is something to be respected, even revered.

This article, on Xing, is written by Robert Gibson, who has been responsible for intercultural training at Learning Campus, the educational organisation set up at Siemens AG. He very succinctly outlines what businesses see as necessary attributes of intercultural trainers.

Companies expect experience and expertise. No generalists! Not only do you have to talk the talk, you also need to walk the walk. In short: companies want their money’s worth. No surprise, perhaps, but good to get this advice from one of the pros inside the business.

To exploit overseas opportunities, multinational corporations must usually transfer executives into them. Yet these expatriates—a scarce and very dear resource—often fail, and many leave their employers even after they succeed overseas. What can multinationals do to protect their investment (which, according to data provided in the article, can run upwards to $500,000 per year)? Some solutions proposed in this article are:

  • Unlocking talent by having clear partner-family policies for expatriates, such as adequate and in-depth preparation, rewards for local interaction during the assignment, and easy access to housing, schooling and feedback mechanisms as an ongoing policy.
  • Sourcing creatively such as finding talented expatriate managers in previously run joint ventures, sourcing outside of the corporate home market, and having permanent on-site teams to help facilitate operations.
  • Considering that 70 percent of failed assignments result directly from personal and family difficulties rather than incompetence on the job, having an early assessment program in place is essential.
  • Keeping the expatriates and their families well connected with corporate home base by facilitating a two-way transfer of knowledge.
  • Clear evaluations by involved senior management with visible and well-explained metrics for performance are essential.
  • Retaining the talent within the company: according to one survey, a stunning 91 percent of returning expatriates felt that their companies didn’t value their international experience. The result of this is repatriated managers in the US leave their companies at twice the rate of managers with purely domestic experience, usually within one year of returning.

The article has a great deal of data to substantiate both the problem as well as the proposed solutions. Even though it was published in the McKinsey Quarterly over 10 years ago, the lessons are now more valuable than ever. Considering the increased trend towards globalization and the even scarcer resources because of the economic downturn, it is ever more important to make the small investments necessary to protect the larger business equation.

The article can be found online here

“Are you taking your expatriate talent seriously?” by Tsun-yan Hsieh, Johanne Lavoie, and Robert A. P. Samek, The McKinsey Quarterly, 1999 NUMBER 3, p. 71 – 83.

What matters to CEOs and corporate learning: it’s all about the business results (T&D magazine #learning #results #ROI): http://ow.ly/1nkjK

An article by the training ROI authority Jack Phillips in the January issue of T&D magazine shows the results of research among a large number of CEOs regarding what they want to see from their corporate learning investments. Even though a whopping 96% want to see the results of learning and development back in their business impact data, only 8% claim to see it now. This demonstrates an enormous mismatch in L&D investments and providing business leaders with what they want to see.

The article lists a number of practical steps that we as learning professionals can now take to start showing business results. Even though Phillips is renowned for his admittedly complex training ROI calculations, the solutions he mentions are practical, immediate and can be undertaken with a minimum of investment. Among others they include focusing on objectives, integrating personal learning scorecards, providing success stories and building evaluation early into the L&D design.

“Confronting CEO Expectations About the Value of Learning,” by Jack J. and Patti P. Phillips, T+D 64 (2010) 1 (Jan); p. 52 – 56 (5p.)

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