Leaders often assume a uniform corporate culture, but reality is fragmented. Ethical norms can differ dramatically between a sales team in one country and a finance team in another. Recognizing this heterogeneity is the first step toward effective, tailored compliance programs that address specific local risks.
Cultural sensitivity isn't just for international sales. Within the U.S., local passions like college football function like a religion, influencing everything from wedding schedules to acceptable conversation topics. Misunderstanding these hyperlocal norms can be as damaging as a major international faux pas.
Most corporate values statements (e.g., "integrity") are unactionable and don't change internal culture. Effective leaders codify specific, observable behaviors—the "how" of working together. This makes unspoken expectations explicit and creates a clear standard for accountability that a vague value never could.
LEGO's CEO notes that absorbing new hires into the culture at its established HQ is easy due to the high density of tenured "culture carriers." The real challenge is scaling culture in new, specialized hubs, which requires a much more deliberate effort because that organic cultural osmosis is absent.
Experian uses a federated model where central functions like technology set global standards for security and governance, while regional CEOs adapt products to local economic contexts and regulations. This balances efficiency with market relevance.
Leaders focus on obvious cultural differences like language. However, the divide between departments in the same organization (e.g., military vs. State Department) can be larger and more insidious because it’s less apparent, leading to misinterpretation rooted in different organizational norms and assumptions.
Most firms give generic online training to masses and reserve expensive in-person sessions for senior executives. A more effective approach is to use data, like from an ethics survey, to identify high-risk business units or regions and invest in targeted, in-person training for them, regardless of seniority.
A one-size-fits-all approach stifles innovation in global companies. To build trust and adapt effectively, leaders must empower local teams with decision-making authority. This respects crucial market-specific cultural nuances and consumer behaviors.
Culture isn't an abstract value statement. It's the sum of concrete behaviors you enforce, like fining partners for being late to meetings. These specific actions, not words, define your organization's true character and priorities.
The core challenge for global teams isn't overt issues like time zones, but hidden ones. Members often lack the local context to correctly interpret information from colleagues, creating "blind spots" where they "don't know what they don't know," leading to misunderstandings and flawed decisions.
When a team has members from 10+ countries, country-specific 'do's and don'ts' are useless. The effective strategy is developing broad cultural intelligence: slowing down, listening more than talking, and using inquiry to ensure mutual understanding with any colleague, regardless of their origin.