Navigating Organizational Culture

Part 2 of 4 Series on Strategic Development for Emerging Market Developers

Drawing upon extensive experience in global game development across diverse cultures, I have come to appreciate the nuanced intricacies of navigating organizational culture, particularly within emerging market economies.? I have observed several post-acquisition assimilation processes in mergers and acquisitions (M&A) that have revealed a notable oversight in understanding and addressing cultural disparities. While my own background of 18 years in external development has provided valuable insights, it's evident that not everyone possesses such experiential depth. As I continue to consult in Strategic Development, I have sought tools to augment my understanding of cultural nuances. In this second instalment of a four-part series on Strategic Development for Emerging Market Developers, I delve into the significance of Navigating Organizational Culture through Insights.

Utilizing Insights for Cultural Due Diligence

Prior to engaging with external teams from diverse regions, a meticulous due diligence process becomes imperative, especially when unfamiliar with the cultural nuances of the target country. My personal research and experience served me well over the years, but as I looked further to forecast operational risks, I began looking towards tools to support my due diligence and found advantages in leveraging Hofstede Insights. An effective framework for resolving intercultural and organizational challenges, Hofstede Insights delve into the national and organizational cultures, shedding light on shared expectations, values, and operational practices.

Key Indicators for Cultural Assessment

Hofstede's methodology encompasses six core indicators, each pivotal in discerning cultural disparities and assessing alignment with North American organizational culture:

• PowerDistance
• Individualism
• Masculinity
• Uncertainty Avoidance
• Long-Term Orientation
• Indulgence

Case Study

As part of my consulting work in assessing developers in various global markets, I was tasked to evaluate an external developer in India a few years back.? Examining India through the lens of Hofstede Insights and in contrast to North American Cultural Insights unveiled nuanced cultural traits, making it a prime example of how the tool can be used as a guide to begin to understand National Culutre.

• Power Distance: In India, Hierarchical structures prevail, with management exerting considerable control.

• Individualism: India balances collective and individualistic traits, emphasizing familial relationships in employment dynamics.

• Masculinity: While success is esteemed, humility tempers ostentatious displays, reflecting spiritual underpinnings unique to India.

• Uncertainty Avoidance: Patience and tolerance for ambiguity characterize Indian culture, fostering innovation amidst imperfection.

• Long-Term Orientation: India exhibits openness to diverse religious philosophies, navigating uncertainties with a fluidity.

• Indulgence: Social norms restrain indulgence in India.

Interpreting Insights

After such insights, the resulting assumptions follow with several areas of consideration.

• Compliance considerations: Variances in uncertainty avoidance may impact regulatory adherence, warranting meticulous scrutiny in industries with stringent compliance standards.

• Team dynamics: Variations in individualism scores may pose challenges in maintaining fairness and authenticity in hiring and promotional practices, necessitating tailored approaches to foster inclusivity.

• Management styles: High power distance may necessitate adaptive management styles, aligning with the prevailing organizational culture to optimize team dynamics and performance.

Deviation from National Culture

While Hofstede Insights provide a foundational understanding of national cultures, it's important to recognize the divergence between organizational and national cultures. In contexts such as video game development and external development, what I’ve learned through my experience is that organizational cultures often evolve to align with client preferences which often have differences in National Culture. Encouraging such alignment fosters synergy and trust, driving enhanced performance in cross-cultural collaborations.

In the case study mentioned, the assessment of organizational culture was not complete until there was a further understanding of how the Organization may deviate from the National Culture in favour of the client’s interest. Further due diligence was required, but this first step with the Hofstedes Insights helped to develop a framework of questions to better understand organizational culture.