The U.S. and Europe share a common Western cultural heritage. Britain and the U.S. even share the same language. However, this does not mean that there are not important cultural differences in the instincts and values of the executives from each region. In my book, “Cultural DNA: The Psychology of Globalization,” I argue that a very particular set of people went for very particular reasons to the U.S. and that this has had a profound impact on American culture generally, which also is reflected in its business culture. These findings are supported by YSC research on the strengths and weaknesses of executives from different parts of the world.
Here are five ways in which misalignment can occur and where thoughtful and sensitive management by each side can help to avoid problems:
1. Americans are inherently more positive. Positivity is hard baked into the cultural DNA of America at all levels. Originally, a journey across the Atlantic to an unknown land was a dangerous and unpredictable choice that could only have been made by people who were inherently positively minded. Americans are trained to be positive, show their best selves, and see the glass as half full rather than half empty. European executives just seem plain pessimistic and negative.
European executives need to be careful about how their inherent scepticism might land and learn to embrace and see value in the power of positivity that American executives show. However, such positivity also can lead to people in Europe feeling that significant problems are being airbrushed away. American executives also can be seen as emotionally inauthentic. In our survey, while American executives were among the highest in the world with respect to positivity, a full 19 percent were identified as having a development need in the area of “emotional openness and authenticity” compared to a global average of less than 10 percent.
2. European executives are more independent minded. In America, CEOs and other senior leaders can acquire near God-like status in the eyes of employees. This means that American executives are used to their employees falling into line more and a relatively easier translation from intent into execution. By contrast, when American executives come to Europe, they often can feel like “they are herding cats.” Individualism and a sense of equality is hard baked into European cultural DNA. In many Scandinavian countries, for example, the whole notion of leadership is regarded with suspicion as it smacks of some people putting themselves above others. American executives have to work much harder at alignment and invest time in building support for their ideas in Europe than they are required to back home. There is also a constant risk of initiatives being stymied or the original intention being subverted into something else.
3. Americans can find it hard to flex their models. Much of American business success abroad seems to stem from firms that have found a formula for success that they then roll out worldwide. McDonald’s, Kellogg’s, Heinz, Marriott, and many other U.S. brands are based on the launch of products on a standardized business model scaled up around the world. These companies show very little flex in their approach. European multinationals in similar sectors, such as Unilever, Cadbury Schweppes, or Nestlé, tend to be much more flexible around adjusting their models as they engage different parts of the globe
While the U.S. approach can create clarity, it also can lead to American executives being perceived as unempathetic or insufficiently flexible. In our database, only 8 percent of the American executives had a strength around empathy and listening skills, and 26 percent had a development need in this area. These were among the lowest scores globally on this attribute. By contrast, European executives were strong in this area. In addition, only 16 percent of American executives had a strength around intellectual flexibility and creativity, one of the lowest scores globally. By contrast, more than 27 percent of European executives had a strength in this area.
4. Europeans value functionality less. When one visits America, one is struck by how well everything works and is designed to make life easy. Many things in America are designed to get you from A to B, whether this represents geographical movement, nourishment, rest in a hotel room, or satisfaction of any other basic human need.
This sense of functionality also has a strong influence on business culture. American executives get to the point fast in business and can be frustrated by cultures that are less focused. It also potentially leads to an insufficient emphasis on building relationships or achieving alignment with others. By contrast, European executives can appear slow and insufficiently focused on what matters to American executives.
It also can lead to American executives naturally valuing aesthetics less when it comes to marketing or product design. European executives can, by contrast, be much more effective in developing and marketing luxury goods or producing creative promotions and advertising.
5. Europeans can be more elitist. A while back, I was working with a senior team of a French subsidiary of a major U.S. multinational. It so happened that the U.S. CEO, who came wearing a jumper and jeans, was visiting on the day I had individual meetings with the French leaders. The French leaders all described with varying degrees of intensity having been personally insulted by his attire. The CEO made matters worse by cutting short a lunch that had been carefully prepared for him and by insisting he wanted to go out and meet people.
This story illustrates a certain paradox in European culture. While at a societal level Europeans value equality more, there is also a sense of social elitism and distance. European executives can seem unduly status driven. However, at times, American executives have to be careful that they create clear lines of responsibility and that they respect the space and latitude for decision-making of their subordinate.
Gurnek Bains is co-founder and chairman of YSC, a leading corporate psychology consultancy. He is listed in HR Magazine’s Top 100 Most Influential People. His latest book, “Cultural DNA: The Psychology of Globalization,” is published by Wiley. Contact him via e-mail: gurnek.bains@ysc.com
