12 Rules: rigid or flexible

...In the more developed world, in what I call the rational cultures, there is this huge attempt to make everything standard, to make everything objective.

Brian Howe

This instrument compares expectations of how we think people will behave. There are two extremes. One extreme is an obligation to adhere to standards or rules, which are universally agreed by the society in which we live. Rigid, or rule-based behaviour, should apply to everyone whatever their position in society: ‘the law is the law’.

The other extreme revolves around our attitude towards our obligations to others.

Judgements focus on the exceptional nature of present circumstances, so rules are situational and flexible (sometimes known as particularist). In these cultures there is an emotional need for rules (even if the rules never seem to work). Statistically, from the comments our international managers made, this instrument was rated to be the second most influential by the overall research.

Every country has its way of saying things. The importance is that which lies behind people’s words.

Freya Stark

Culture crash

Sarah Haider, a German, was talking to her English colleague Anne-Marie. Both were young mothers returning to work after maternity leave. They were discussing how to discipline their children. Anne-Marie said, ‘I see it as my role to show Ben the rules as a young boy and, of course, as he gets older, how to bend the rules to make them work for him.’ Sarah was aghast:. ‘You either have rules or you have no rules, but you cannot bend the rules!’

‘The real thinking of the Germans is highly structured, whereas the fundamental culture of the Finns is that they come from the wilderness without any rules, any structural thinking.’

Culture tip

The two women realized they would have to learn to adapt to work together as they had some fundamentally different viewpoints.

Rules set boundaries which give us guidelines or limits that identify what we deem reasonable, safe and permissible in people’s behaviour. They set our expectations of how we should treat others and how others should treat us, and define our responses if someone steps outside those limits. Such rules are built out of a mix of beliefs, opinions, attitudes, past experiences and social learning.

International businesses think more in a rigid-rules way, looking for standardization. Within this type of Western organization everyone acknowledges the validity of the rules because they bind everyone to a mutual understanding. However, even within the cultures who stick to the rules there are differences in terms of flexibility. The more individualistic and competitive cultures strive to ‘get an edge’ over others. These people challenge the rules and can be obsessed with doing things their own way while still operating within the boundaries of the rules of conduct. Americans, the Anglo-Saxon cultures and Danes are viewed in this way by most Europeans (think in terms of Britain and the EU!).

There is a chasm of belief and behaviour between north-western Europeans and those in southern Europe, which is one reason why the Germans and Greeks will never see eye-to-eye over the financial crisis in the EU. The most rigid, rules-based cultures are more common in the Protestant cultures of the north because of their religious beliefs around truth as an absolute: good or bad, right or wrong. The Catholic south thinks that God might understand if you have to tell a fib to your friend, so there is more of a ‘flexible’ approach to the rules. Right or wrong? It depends...

Culture crash

Will Jones, a senior sales manager in a pharmaceutical company working across South America, explained: ‘It’s like playing football in the fog. You don’t know in which direction to go. You don’t know where the goal is. You don’t know if you’re offside. That’s until someone shouts!’

Culture tip

Beyond rule-bound northern Europe and the more flexible south lies the rest of the world. African, Arab, Asian, Far Eastern and South American cultures approach rules flexibly. For them, rules are based on the logic of the heart and human friendship. Organizations in these cultures avoid rigid or standardized systems to manage. Rather, they prefer to leave some room for changes which might occur in the future process. When you put these different approaches together you can have an almighty culture crash, just because the rules of engagement are different.

Culture crash

A few years back, the European Union granted funding to Malawi for a project. Some time later, the Malawi Government applied for more money from the EU for another project. The EU were willing to give more money but they wanted a detailed account of how the previous funding had been spent, as the Malawians had not complied with reporting conditions. Months went by with ping-pong diplomacy and the Malawians still not saying where the money had gone. An impasse ensued. Then the EU decided to grant the African country the funding they requested. They no longer had to account for the ‘lost’ money but could use it to start the new project. When the project was underway, the EU would release another instalment of funds. Negotiations got nowhere. The project didn’t start. The Malawians continually pressed for the money and the EU continually stressed that they should use the funds previously given to them. Soon after, the Danes took over the EU Presidency and all negotiations with Malawi were cut. The Malawians were furious. The Europeans were unyielding.

Culture tip

I At the time of the incident, Debby was on an assignment working with the fledgling Malawian Civil Service. Her role was to help bring their communication skills in meetings, negotiations, presenting and reporting up to international standards. One major task was to help them to understand the concepts of accountability and transparency – a challenging task when the group saw nothing wrong with their newly elected President using public funds to restore his personal fortune after spending it on getting elected. They viewed it as ‘only fair’. Western concepts of misappropriated funds, bribery and corruption have no currency there.

Culture crash

Kieran O’Brien, a Dubliner and a newly assigned international manager, jets off to Hong Kong. He works as a part of the business development section of The Irish Tea Company, a new and up-market brand in Ireland. He arrives at the office of the leading tea supplier in Hong Kong. He places the contract on the table in front of him with one intention: to get it signed.

The meeting is going great, according to Kieran. Having done research into Chinese business etiquette, he is well aware that he must make his Chinese counterparts trust him and must build rapport with them. At the end of the meeting, the Chinese sign, shake Kieran’s hand and the meeting is concluded. Kieran leaves feeling confident and proud.

Several months later, nothing has happened. Repeated emails have gone unanswered. Eventually, the Managing Director, Declan O’Toole, receives an email from their agent in the Chinese office to say that no contract was signed and no deal made.

Culture tip

In Western rigid-rules cultures, a contract formally sets out the obligations of the parties involved. Every detail is written down and penalties are prescribed for noncompliance. Once a contract is signed any flexibility is minimized. Americans, especially, set great store by their contracts and have lawyers on hand to sue over any infringements.

Conversely, in flexible-rules cultures, writing everything down is not regarded as important. A legal contract communicates a starting point for an agreement. As circumstances change so too should the terms of the agreement; the situation and the particular individuals involved are what define the relationship. Strict regulations are offensive and can be viewed as an insult. Contracts are kept vague with room to manoeuvre. People from these cultures prioritize trust and maintaining relationships, so the real negotiations take place long after the talking has begun.

In the culture clash above, Kieran wanted to get the contract signed as soon as possible and has probably already been dismissed in the minds of his hosts. The Chinese signed the contract easily to please their Western counterpart, as they believe details can be changed (or ignored) afterwards. So if you want to do business in China you first need to build a relationship.

Culture crash

Jürgen Schmidt was a senior analyst with a prestige German car manufacturer. During his first visit to Shanghai, in a meeting with a Chinese distributor, he was shocked to see that some of his data and findings had been copied without prior consent. There was no regard to copyright.

Culture tip

I Truth and meaning are fluid and circumstantial in China. What we regard as cheating is not perceived as wrong, and designs are abundantly reproduced without permission or deference to the knowledge owner. Knowledge is not seen as a commodity that can be traded, but as an organic element that needs feeding through interaction with people you trust. As knowledge belongs to the community, and not to any one individual, the ethics surrounding knowledge are different from in the West.

Cultural competence check

Behaving ‘inclusively’ is making sure that you:

A. Know, respect and use similarities and differences in your group to effectively meet your goals

B. Invite everyone to meetings and events

C. Copy everyone on e-mails and correspondence

Answer

A is the best definition. Knowing and respecting people's differences and similarities will tell you when and where B and C are appropriate and helpful.