Cultural differences between internal and external organizations, and mitigating actions

7 steps to help navigate cultural differences between organizations

After working with cross-organizational projects since 2011, this is one of the areas that has surprised me the most.

A scenario you may recognize: You go “dating” with your future business partner, you align, you negotiate, you sign the agreement and then it is let's build a something together....

….but then things go totally wrong with the collaboration and people start fighting against each-other.

It is not that easy to describe being friendly to each-other in a contract - and it can easily be something we take for granted.

“Listing to me, I'm super-duper important and I know everything”-types and loud/silent egos are rarely productive for cross-organizational projects (or projects in general).

Let’s try to understand

When organizations come together for a collaborative project, they can bring unique cultures and unique (or unreal) expectations.

These dynamics - difficult to capture in a contract - can significantly impact project outcomes.

Some typical challenges you may recognize:

1. Cultural differences: Different work styles, communication preferences and decision-making processes can lead to misunderstandings and conflicts.
2. Subjective expectations: Individuals within each organization may have differing interpretations of project goals and success criteria.
3. Unrealistic expectations: Misaligned expectations about deliverables, timelines and email/phone/chat availability for resources can cause friction during the project lifecycle.
4. Managing big egos: Dealing with strong personalities who may prioritize their views over collaboration and are very "loud" (even actually being silent)

Cultural risk analysis

Before getting started with a collaborative project (cross business unit or cross company), it can be relevant for Project Managers and Analysts to look into the cultural and collaboration related risks.

Ignoring these factors can lead to unforeseen challenges and hinder project success, as mentioned above.

Here are 7 elements I think that works - And yes, I did learn this from getting my hands burned more than once…

1. Initiate early conversations: Discuss the potential impact of organizational cultures, personal expectations and individual working styles on the project. Be open about this topic. Spot the egos.
2. Identify key cultural differences: Work collaboratively to identify and understand key cultural differences. This could include communication styles, decision-making processes and approaches to conflict resolution. Knowing these differences upfront allow for proactive management for both parties.
3. Establish common ground: Find areas of common ground where both organizations align culturally. Shared values help create a foundation for effective collaboration. Share the values with teams on both sides.
4. Define clear expectations: Ensure that expectations are explicitly communicated and documented. This includes project goals, timelines and individual responsibilities. Pretty obvious, but still relevant.
5. Develop a communication plan: Craft a detailed communication plan that addresses the communication preferences within the teams. This plan could include regular check-ins, project updates, mechanisms for escalations and general availability.
6. Implement conflict resolution mechanisms: Anticipate potential conflicts and establish mechanisms for resolution.
7. Continuous monitoring and adaptation: Regularly monitor the cultural dynamics throughout the project lifecycle. Conduct feedback from both project team members and managers via retrospective sessions for project phases. Share the feedback. Keep your own ego out.

How have you handled cultural differences between internal and external teams?

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