The Power of Cultural Differences Pennsylvania International Week Erie, PA September 18, 2012

1. The Power of Cultural Differences Pennsylvania International Week Erie, PA September 18, 2012

2. Three Megatrends are Changing the World’s Dynamics: Higher GDP in emerging markets Young population in these markets Rapid urbanization of Asia, Africa, and Latin America

3. Source: The Economist Power Shift 08-04-2011 1. Growing GDP

4. Source: Earth Habitat.com 2. Young Population

5. Source: World Bank 3. Urbanization

6. Largest Cities in the World in the • 20th Century: • London, New York, Paris, Chicago, Berlin, Tokyo • Largest Cities in the World in the • 21st Century: • Mumbai, Sao Paolo, Shanghai, Jakarta, Karachi, Lagos

7. Source: the Atlantic 2000 Years in One Little Graph 06-19-2012

8. How to Position Your Company to Benefit From the New World Dynamics?

9. Develop a diversified workforce • - Train to develop a global mindset • Lead with cultural intelligence • Must rethink the way we innovate • Pay attention to disruptive innovation • Acknowledge the trickle-up syndrome

10. The Lewis Model

11. Your Cultural DNA & the 7 Cultural Dimensions at Work: Social Stratification Independence Level Business Focus Communication Pattern Concept of Time Handling Change Career Driven vs. Joie-de-Vivre

12. GLOBAL VIEW OF SOCIAL STRATIFICATION • In an egalitarian culture, people: • Speak their mind • Life is informal • Titles are not important • Merit prevails for reward and promotion • In a hierarchical culture, people: • Speak with caution • Life is very formal • Titles are very important • Seniority prevails for reward and promotion

13. GLOBAL VIEW OF INDEPENDENCE LEVEL • In an individualist society, people: • Are self-starter • They don’t like to be micro-managed • They control their destiny • In group-oriented culture, people: • Like to follow directions • Like to be micro-managed • Believe in fate dictating their trajectory

14. GLOBAL VIEW OF BUSINESS FOCUS • In a “transactionist” culture, people: • Focus on the product, the warranty, the profitability • Rely on the law when things go wrong • Don’t mix business and pleasure • In relationship-oriented culture, people: • Focus on the people who sell the product • Rely on the relationship when things go wrong • Business is pleasure

15. GLOBAL VIEW OF COMMUNICATION • In a direct culture, people: • Say things as they are • Go straight to the core (low context) • Being honest is a sign of integrity • In an indirect culture, people: • Involve others to discuss an important matter • Don’t go straight to the problem • Speaking one’s mind is disrespectful

16. GLOBAL VIEW OF THE CONCEPT OF TIME • In a linear culture: • Time is a commodity • Punctuality is a sign of respect • The relationship understands the constraint of time • In a circular culture: • Time is created when needed • Punctuality doesn’t mean anything • The relationship supersedes time constraints

17. GLOBAL VIEW OF HANDLING CHANGE • In a change oriented culture: • Change keeps us young • Change means you can adapt and grow • Failure is part of growing • In a change-resistant culture: • Change kills us • Change means that you are no longer in control • Failure means that you have lost face

18. GLOBAL VIEW OF WORK/LIFE BALANCE • In a culture where people live to work: • Work defines a person • Ambition is admirable • Work always comes first • In a culture where people work to live: • Relationships define a person • Ambition is negative • Pleasure always comes first