So close yet so different

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'a sound intercultural preparation is a small investment compared to the financial commitments at stake in a multinational project'

It would seem at first that the British or the Dutch should have more in common with the Swedes or the Germans than with the Japanese. Even though London might be less than 45 minutes away from Amsterdam or Rome less than two hours, there are still huge differences between European countries.

Indeed, it is easy to believe that, armed with a good list of "dos and don'ts" and a little knowledge of another language you will be able to manage any business situation; after all, we are just neighbours.

Well, it can definitely help, but the chances are that you will still experience frustrating situations, which can seriously affect your relationship with other European colleagues, clients or partners. Many new mergers, business ventures and multinational projects have failed precisely because of a lack of cultural understanding.

Not as simple as "dos and don'ts"

It is useful to know that you may have to address your German colleague as Herr Doktor Muller, but if you do not place this into the wider concepts of "status" and "power", you may expose yourself to a lot of costly misunderstandings. Such notions as time, equality, authority, power, freedom... are perceived differently across Europe. Each nation has values which are passed from generation to generation through parents, teachers, peers, role models, the media etc. and which shape our social and business behaviours.

No European way to do business

Leadership styles, organisational structures and communications are a clear reflection of these values. This means that business expectations are also different from country to country. A meeting for example, means something different whether you come from Denmark or Spain. For strong hierarchy oriented countries of Southern Europe, a meeting is a way to pass down information for implementation. By contrast, it is more a way to discuss options and make decisions in the more consensus driven countries of Northern Europe. If executives of various countries are seated at the same table, those who are not culturally aware will, in most cases, come out of the meeting frustrated, criticising the others about their "strange" way of doing business. Similar situations would happen in such areas as problem solving, decision making, negotiating, delegating, motivating, teamworking, work ethic etc.

Reducing the risk of cultural "faux-pas"

Not understanding the foundations of value differences and the principles of cultural adaptation can seriously jeopardise a new or existing business relationship. Expatriates or frequent business travellers are not the only ones exposed to potential cultural "faux- pas". Executives involved in multinational projects are also at risk and the increasing use of remote communication such as e-mail, teleconferencing, video conferencing in the management of these projects, can multiply these risks many times. A sound intercultural preparation is a small investment compared to the financial commitments at stake in a multinational project or venture.

Towards Multicultural Synergies

Developing cultural awareness and related skills at all levels of management will not only reduce considerably potential failures but it can also contribute substantially to the bottom line. Turning our negative European stereotypes into a positive attitude towards cultural diversity can open new doors and create new synergies. If well managed, the cultural diversity of Europe can bring tremendous dividends to any organisation.

So, being "different" is not so bad after all. What is bad is not knowing how these rich differences can be turned into corporate advantage.