Successfully Managing Innovation Through Cultural Diversity By ...

Successful y Managing Innovation Through Cultural Diversity
By Diane Leibinger

Leaders of American-based global companies
longer are senior executives exclusively devel-
article Participating in Meetings iv emphasizes
are increasingly aware that they must adapt
oping strategic and operational goals for the
the importance of understanding what silence
their management skil s and business focus to
company – participation has expanded to al
may mean. The article discusses the cultural
ensure their continued success. This article wil
levels within the company as wel as outside to
aspect of silence and how it is perceived. In
explore how today’s leaders must resourceful y
their customers and suppliers. American-
Sweden or Norway, silence may indicate a tacit
handle cultural diversity while implementing
based company leaders are also including their
agreement, while in UK it may be a sign of
innovative processes in the planning, organiz-
international counterparts in the planning
distance and possibly disagreement. The
ing, leading and control ing of their companies
phase to ensure that the company mission and
article goes on to say “never assume that
in preparation for the first quarter of the 21st
strategies wil be a global fit and a success.
people have understood or agree with you if
Century.
Leaders of the future must ensure they man-
they are silent after an explanation. Ask “was I

age diversity by planning and implementing
clear?” to elicit a response that wil clarify a
There is mounting evidence to indicate that
organizational systems that provide an op-
person’s position”. As managers spend a great
successful organizations cultivate an adaptive
portunity for al employees to participate and
percentage of their time in verbal communica-
entrepreneurial culture. These company lead-
contribute. Creative thinking leaders promote
tion, successful global leaders recognize the
ers actively encourage innovation and cultural
the use of horizontal coordination in the
critical need for strong listening and feedback
diversity. To maintain a competitive edge
organizing process to achieve their company
skil s.
innovative ideas must be encouraged, gener-
goals. Horizontal coordination assists in proc-

ated and implemented throughout the entire
essing information across the company, which
Managers must also deal with how to employ
company from the janitor to the CEO. As
helps to encourage innovation. New ideas are
control ing functions in an organization
discussed in the book Finding Your Own North
more likely to be generated from a variety of
without stifling innovation. Four major methods
Stari, what used to succeed in business
views. Awareness of problems and opportuni-
of control typical y used by innovative manag-
was: consistence; routinization; enormous size;
ties in other areas may produce a new idea.
ers are: belief systems – communication and
hierarchical y control ed information; insistence
By involving people in the development proc-
enforcement of mission statements; boundary
on rational logic; reliance on tried and true
ess of ideas they are more wil ing to support
systems – policies, rules and procedures;
methods; and cultural conformity. What suc-
the implementation of the idea, strategy or
performance management systems – ensur-
ceeds in business these days is: flexibility;
process.
ing that set goals have been met; and interac-
innovation; lean structure; open communica-

tive monitoring systems – encourages focus-
tion; tolerance for incongruity; openness to new
In order to gain a competitive edge in the
ing on promoting new opportunities and devel-
ideas; and cultural diversity.
international market, American companies with
oping new strategic capabilities.

overseas business units must maintain a stra-

It is widely acknowledged that new processes,
tegic focus on managing international human
The successful companies of the 21st Century
skil s and talent are needed for managing in the
resources and adjusting leadership styles
wil be those that recognize the importance of
21st century. Leaders are recognizing they
accordingly. The selection criteria for sending
having the right leaders with the right skil s to
must reevaluate their current company strate-
US managers on overseas assignments should
ef ectively encourage and manage innovation
gies and revise or completely change them to
extend beyond technical skil s. Successful
through cultural diversity.
ensure their continued success. The overal
companies recognize that although these are

planning process performs a crucial role for
important; relational skil s - the ability of
About the Author
innovation and cultural diversity in the strategy
expatriates to relate and communicate ef ec-
Diane Leibinger is currently an independent
formation of a company’s new or revised mis-
tively with host nationals is essential in order to
consultant, with prior work history as a Senior
sion, goals and plans. It is not just the CEO
be a successful leader and encourage innova-
Specialist Business Consultant with Perot
and immediate staf coming up with ideas.
tion. The essential communication skil s in a
Systems Corporation and management con-
Successful companies recognize the impor-
global environment include the motivation to
sulting at Price Waterhouse. She has over 20
tance of the workforce and cultural diversified
learn the host country’s language and the
years business, leadership and project man-
groups in their role to participate, identify,
ability and desire to understand and interact
agement experience in the planning, analysis,
agree and implement the company’s mission
with host nationals about subjects that are of
design, training, and implementation of bank-
and strategies. Including various levels in the
particular interest to them. They must appre-
ing, manufacturing, travel & leisure and tele-
planning process provides the opportunity as
ciate cultural dif erences and be able to adapt
communication systems. Original y from the
stated in Fast Company’s magazine article The
their leadership styles accordingly to local
United States, for the past 11 years Ms. Leibin-
Old Economy meets the New Economy i - of
customs. Considerations such as the power
ger has lived and worked in France, England,
“bringing together diverse groups of people
distance index should be used to determine
Germany and Switzerland.
who have a common vision, passion, and
the desired leadership style for a particular
Diane.Leibinger@bluewin.ch
commitment to take on the world. As an old
country. Subordinates in high power distance

company, that’s one thing we need to capture
countries (Mexico, India) expect leaders to act
and replicate. There’s no substitute for people
autocratical y and have more privileges than
i Martha Beck, Finding Your Own North Star
who have a common vision and passion”.
workers. Subordinates in medium power
(New York: Crown Publishers, 2001), 12.
Leaders of the future wil need to become
distance countries (USA, Japan, Italy) expect to
i “The Old Economy meets the New Economy”,
skil ful in ef ectively handling diverse group
be consulted, but wil also accept some auto-
Fast Company Magazine, Oct 2001, 74.
dynamics as business becomes more global.
cratic behavior while low power distance coun-
i i Jim Champy, “Focus on Tomorrow”, Com-
Winning leaders reevaluate their company’s
tries (Sweden, Denmark, Israel) expect to be
puter World Magazine , 28 Aug. 2001.
current position by conducting a SWOT analy-
consulted on most issues, with preference to a
iv Bob Dignen, “Participating in Meetings”,
sis of their strengths, weaknesses, opportuni-
participative democratic style of leadership.
Business Spotlight Magazine, Ausgabe 4/2001,
ties and threats in new innovative ways for the
Understanding communication styles is
76.
preparation of their future strategic planning.
essential in creating an open environment that
As Jim Champy, Chairman of Consulting at
encourages innovation. It is important to rec-
Perot Systems Corporation wrote in the Com-
ognize that in high context cultures such as in
puter World magazine article Focus on Tomor-
Mexico, India and Japan, communication
row ii “You must begin to consider al of your
focuses first on the relationship aspect before
processes, but, this time, not just within the
actual business is conducted. In low context
wal s of your company…. the days of the Inter-
cultures such as the USA, Canada, and Ger-
net are just beginning. The next round of
many, the focus is more on the exchange of
business performance enhancement is at
information rather than relationship building.
hand. What is required is aspiration, combined
Not only is the spoken word important so is
with time, money and lots of persistence.” No
silence. The Business Spotlight magazine

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