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fourth
  Diversity Creates Demand
For Transcultural Managers

 
 
 

"WANTED: Multilingual and culturally fluent managers, with experience managing diverse teams. Age and nationality irrelevant."

International companies may not be using these specific terms in their job ads yet, but they're crying out for managers with such skills.

"Managers who are capable of getting the best out of a work force that's becoming increasingly diverse, and aware of the challenges that accompany [diversity], are in huge demand," says London-based Jane Fiona Cumming, a director with Article13, a global business consultancy specializing in corporate governance, social and environmental risk. "They're wanted not just for managing overseas, but within Europe, too."

The demand within Europe is partly due to the removal of borders within the EU, allowing citizens of these countries to freely accept jobs in any other European country they choose. This is making the work forces of many countries -- for example, the United Kingdom, France, Spain and even Sweden -- increasingly diverse.

But as Europe's population ages, its labor pool must become even more diverse. Not only will Europe need to make greater use of older workers, but it also needs to open its doors to immigrants from outside the continent. Consider Italy and Germany. Italy's population, currently about 57 million, is projected to decrease to 41 million by 2050. In Germany, the working-age population is expected to decline from 56 million to 43 million in 2050. For these countries to make up the shortfall, Italy will need approximately 350,000 immigrants each year and Germany close to 500,000 immigrants, according to the Global Aging Commission.

Naturally, companies that want to keep taking advantage of international opportunities and venture into more niche markets must keep diversifying their labor pools. "In fact, organizations like British Telecom (BT) already go to huge lengths to diversify their work forces without positively discriminating," says BT's group employment policy consultant, Becky Mason. "A diverse work force, however, requires managers who can get the best out of its employees -- regardless of age, sex, culture, background, nationality and religion -- which is by no means an easy task."

A Rare Skill Set

Managers with such skills are rare and in increasing demand. Those who have or acquire these abilities will be singled out for advancement, possibly even for grooming for top leadership positions. Fons Trompenaars, a director of Netherlands-based cross-cultural firm THT Consulting and co-author of "Riding The Waves of Culture" (McGraw-Hill Trade, 1997) describes the ability to recognize and understand cultural differences and then reconcile and leverage them for business advantage as "transcultural competence."

"Leaders like Michael Dell and Richard Branson have this transcultural mindset," says Mr. Trompenaars. "It's partly the reason they have thrived in business."

Cross-cultural management skills come from working with a broad range of people over time. "It's about being aware of diversity in everything you do, from giving out a recruiting brief, to selecting a team, to looking at suppliers. You always have to be asking, 'Is this the right mix for this project or the future?' " says Rob Yeung, business psychologist at Kiddy & Partners in London, and author of several management books including "The Ten Career Commandments" (How To Books Ltd.).

Transcultural mindsets can be learned, Mr. Trompenaars believes. Even so, such qualities can't be achieved overnight or from taking a single course. Instead, they're typically acquired through a combination of training courses and personal development.

Basic understanding requires cultural sensitivity savvy at two levels, says Lisbeth Claus, professor of international human resources at the Monterey Institute of International Studies in California. These are:

  • a generic understanding independent of the cultures/nationalities involved and
  • a specific country/culture understanding.

"A short cross-cultural course is a quick way to acquire a generic understanding. It will give an insight to how cultures differ based on the works of cross-cultural gurus like Fons Trompenaars and Geert Hofstede," says Ms. Claus. "For example, you'll learn to appreciate how other cultures value life. Is it an individualist culture -- like the U.K.'s -- or a collective one -- like the Japanese or Latin cultures? Once you have that kind of knowledge, you'll find it easier to understand, manage and reconcile cultural differences that may arise in the workplace."

Will an M.B.A. Help?

If you're vying for a senior international management position within a multinational company, earning an M.B.A. may be worthwhile, says Peter Calladine, educational services manager at the U.K.'s Association of M.B.A.s. "Working on assignments in culturally diverse teams, M.B.A. students learn to understand and accept diversity and to gain those skills that will mark them down for rapid career progression," he says.

Adds David Norburn, director of U.K.-based Imperial College of Management: "We have about 30 different nationalities at our school. The more nationalities you mix with, the more empathetic you become in dealing with differences in a classroom situation, which will better equip you for the real business world."

M.B.A. studies also can provide a deeper understanding of certain foreign cultures, says Fred Seidel, a professor at French business school EM Lyon. "For example, an understanding of institutions like education systems will give a clue about the way certain cultures learn and solve problems," he says. "This can be done by analyzing environments by looking at company growth patterns. For example, [you could learn] why German and U.K. companies have been able to build huge organizations, whereas other European countries may not have."

Choosing a School

It's important to choose a business school carefully, says Mark Collins, a London-based consultant for The Boston Consulting Group, a professional services firm, who's studying for his M.B.A. Working in London has exposed him to many European nationalities, so he enrolled in Harvard Business School for his M.B.A. instead of a European school. These programs have a greater mix of nationalities but, says Mr. Collins, Harvard could "expose me to other diverse groups like African-Americans, Asian-Americans and Latin-Americans, which Europe doesn't have."

Completing the M.B.A. is allowing him to work on problems with people with these backgrounds and learn how cross-cultural issues affect business, including the impact of diversity on organizational behavior, says Mr. Collins. "I've been able to put this knowledge to good use on projects, which is mainly implementation of strategy for international clients. Of course, theory alone isn't enough. You need experiential learning, too, as it's vital that you're exposed to international business through overseas assignments or working in multinational teams. If your company is offering this, you should take advantage of it."

Mr. Collins has spent a year in Canada and traveled throughout Europe on business. He's confident that the Harvard M.B.A. will help him secure top international posts in the future. "Diversity skills are a hot skill to have in Europe and will become much more important in the coming years, especially if you want to get ahead," he says.

Not for Everyone

That said, overseas experience isn't for everyone. "You have to ask yourself whether you really want to spend six months to a year in another country if, say, you're poor at languages or prone to homesickness," says Mr. Yeung. "You might be better off spending time in a multinational team or working on a project that requires dealing with an overseas supplier while domiciled in your home country instead."

This way, you can acquire international experience without a painful relocation. "It's really a matter of deciding where you want to be in the next few years and choosing opportunities that will help you get there," he says. "But it's important to assess your suitability to international opportunities carefully and honestly."

You also can acquire diversity skills by learning on the job at a company that values differences. "Diversity skills at BT, for example, are engrained in the culture--it's part of our work style, ethic and the way we do business," says Ms. Mason. "At BT, we quickly develop diversity skills on the job because valuing differences is included in our competencies and we're continuously measured against that."

So what does BT look for when recruiting leaders to manage a diversifying work force? "How an individual acquires diversity and cross-cultural skills is really irrelevant," says Ms. Mason. "What's crucial is being conversant with the principles of diversity regardless of whether they're acquired through a short course, M.B.A. or work experience. That means demonstrating and applying that knowledge and experience to get the best out of a diverse workforce."

-- Ms. Sappal, the former editor of GlobalHR magazine, is a free-lance writer in Sydney.


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