Global organisations are expanding rapidly into new regions as the world becomes increasingly interconnected. A recent report found that 87% of UK-based organisations who already trade internationally plan to expand their operations in the coming year. Meanwhile, 450,000 UK-based organisations are preparing to enter overseas markets.
Unknown territories have different cultures, and these must be respected. Ignoring local working cultures will lead to failure, even if the organisation’s products and services appeal to buyers on those markets. Before expanding internationally, it is important to try to understand the local customs. This will help you overcome nonverbal communication and cultural nuances.
Avoiding Culture Clashes
Businesses can increase their employee engagement by understanding local cultures. This could be through respecting Swedish traditions of Fika or allowing employees to participate in CSR projects.
International expansion, if planned well, can have a huge impact on the bottom line. The knowledge that organisations will gain from expanding their international operations is also going to be more diverse, which can help them come up with innovative solutions for problems, improve their decision-making, and increase employee and customer engagement. Organisations can take more informed decisions and reduce risks by gaining a better understanding of other cultures.
Three Steps to International Success
Business leaders must plan carefully to understand, respect, and align themselves with local cultures during international expansion. Understanding the cultural differences between new and existing markets is a crucial first step. What’s typical for a worker in one country may be different than what a colleague overseas is used to. Israel, for example, has a Monday to Friday work schedule to accommodate cultural customs. The UAE, on the other hand, has a Monday to Friday working schedule, with employees fitting <a href="https://www.khaleejtimes.com/legal-view/know-the-law-employer-must-not-stop-staff-from-praying#:~:text=As%20for%20prayer%2C%20the%20employer%20must%20not%20ask,be%20even%20clearly%20stipulated%20in%20the%20company%20bylaw. The UAE, on the other hand, has a Monday to Friday working schedule. Employees are required to fit a href="https://www.khaleejtimes.com/legal-view/know-the-law/employer%20must%20not%20stop%20staff%20from%20praying#::text=As%20for%20prayer%2C%20the%20employer%20must%20not%20be%20in%20in%20in%20in%20in%20in%20in%20the%20n
Understanding how culture and customs affect communication, organizational structures and etiquette will help you avoid cultural issues and ensure that your transition to a new area is smooth.
By breaking the process down into manageable steps, the transition will feel less overwhelming. It also increases the chances of success. Here are the three main steps that organisations must complete:
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Solid Processes
Before developing an integration plan, organizations must first conduct a thorough evaluation of the region. You can do this by mapping talent, researching competitors’ markets or gaining a ‘be there experience’ through walking interviews. Organisations can use this intelligence to drive diversity and inclusion within the local workforce by forming Employee Resource Groups. These initiatives will help employees and organisations gain a better understanding of cultural differences between markets.
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Hiring from a Diverse Candidate pool
Recruitment should be layered. Leaders must ensure that they not only consider skills, but also look for people who are familiar with the local culture. This includes senior figures and even the local leadership team. Businesses that take a long-term approach can also develop the technical and soft skills of local hires. Businesses can engage in STEM (Science, Technology, Engineering and Maths), programmes with schools and universities to inspire innovation among the next generation. It’s not so important what ratio these employees are hired in; it is more important that they are all aligned with the local culture and understand the business goals.
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Provide Educational Resources
In any case, training and network groups are only able to do so much. With hundreds of employees interacting with customers and colleagues from other countries, it can be hard to have an impact on a global organization. Employees must be empowered with the knowledge to learn about cultural differences. Organisations should provide access to experiential learning, as well as third-party resources for further information. It is important that employees have the tools and connections they need to educate themselves, and others, about cultural differences. They will know how to handle any situation.
Adopting a Global Culture
Organisations must embrace diversity on all levels as we move towards a global culture. This is especially true when they enter a new region or country. It’s not enough to label an organization as “global”. Business leaders must commit to diversity initiatives, and then follow through on them to ensure they have a real impact on how an organisation operates.
They will naturally encounter complex barriers such as masculinity, individualism and the avoidance of uncertainty. Different countries will have vastly different attitudes and social norms. But by starting with these three steps, businesses can start moving in the right directions. Businesses must adapt their culture to the changing world. They should also be able to embrace changes in broader social norms and markets. Those businesses that are unable to develop and maintain cultural understanding will be at a disadvantage. But those who get it right will have a better chance of international success.
