Intercultural Management Competence:
C o r e c o m p e t e n c e o r
"N i c e t o h a v e "?
When you examine the issue closely, you will realize that increasing Intercultural Management Competence is everything but “Nice to have”. The latest studies show that the consequences of a lack of business-focused intercultural competence are dire:
Consequences for the companies and the employees affected and their families are often very grave.
They can be seen in:
Business-focused intercultural competence is already one of the key elements in achieving success when competing in the international market.
Comparing
The development of Intercultural Management Competence is, therefore, an important priority in implementing successful company strategies.
C o r e c o m p e t e n c e o r
"N i c e t o h a v e "?
What a paradox!
On the one hand, international and, consequently, intercultural business relations are steadily increasing. On the other hand, right now many companies are cutting their investments in preparing and supporting their employees´ intercultural business relations down to the bare minimum.
On the one hand, international and, consequently, intercultural business relations are steadily increasing. On the other hand, right now many companies are cutting their investments in preparing and supporting their employees´ intercultural business relations down to the bare minimum.
At first sight, it seems logical. Costs should be cut quickly and where they do not seem to hurt. If you compare the success of the measures taken in training individuals and teams, which are not immediately apparent, to the money saved in the short run, there seems to be no contest.
When you examine the issue closely, you will realize that increasing Intercultural Management Competence is everything but “Nice to have”. The latest studies show that the consequences of a lack of business-focused intercultural competence are dire:
- Up to 70% of international co-operations undertaken by German companies failed because the partners did not get along with each other well enough [1]
- The percentage of international projects which are not doing well due to a lack of intercultural competence lies between 40% to 70% [2]
- 35% of the managers interviewed in one study stated that cultural problems are the main obstacles in international acquisition [3]
- Over 90% of those interviewed for a study done by the Management Academy of Bad Harzburg stated that difficulties in communication and hidden conflicts pose the main threat to team work [4]
- 2/3 of employees do not feel well prepared for their new task abroad [5], which means that 40% of those sent abroad go back to Germany before their term in the target country is complete [6]. The reason for this often lies in difficulties they have in understanding the local culture and adapting to it. [7]
Consequences for the companies and the employees affected and their families are often very grave.
They can be seen in:
- Unplanned production costs due to falling behind deadlines
- Longer starting production time with unexpected costs in quality
- Unbudgeted extra costs for sending other personnel abroad
- Wrong decisions in buying companies
- Unplanned efforts in integrating new foreign subsidiaries
- Damage to the company image
- Unplanned re-transfer of employees connected with all the consequences for families, schooling and social relationships.
This does not include the effects of stress or the amount of time lost at all levels of the company in order to cope with the major and minor problems caused.
Business-focused intercultural competence is already one of the key elements in achieving success when competing in the international market.
Comparing
- monetary/ financial cost of funding Intercultural Management Competence vs.
- cost of failed ventures
The development of Intercultural Management Competence is, therefore, an important priority in implementing successful company strategies.
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[1] ) Psychologie heute, Dezember 2009, Seite 48
[2] Eva-Ulrike Kinast/ Alexander Thomas: Handbuch Interkulturelle Kommunikation und Kooperation Band 1: Grundlagen und Praxisfelder, Vandenhoeck & Ruprecht, 2005
[3] ) Christa Ühlinger: Bedeutet international zu arbeiten interkulturell kompetent zu sein? In: Connie Voigt (Hrsg.): Interkulturell Führen. Diversity 2.0 als Wettbewerbsvorteil, Seite 263, Gabal Verlag, 2009
[4] Quelle: http://www.streuverluste.de/aktuell/2005-12-13/fuehrung-management-woran-scheitern-projekte-und-die-teamarbeit.html
[5] ) Psychologie heute, Dezember 2009, Seite 48
[6] Eva-Ulrike Kinast/ Alexander Thomas: Handbuch Interkulturelle Kommunikation und Kooperation Band 1: Grundlagen und Praxisfelder, Vandenhoeck & Ruprecht, 2005. Frau Kinast und Herr Thomas berichten, dass im Fall von Auslandsentsendungen in Entwicklungsländern bis zu 70% der Entsendungen vorzeitig abgebrochen werden
[7] ) Christa Ühlinger: Bedeutet international zu arbeiten interkulturell kompetent zu sein? In: Connie Voigt (Hrsg.): Interkulturell Führen. Diversity 2.0 als Wettbewerbsvorteil, Seite 263, Gabal Verlag, 2009