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MONEY DOWN THE DRAIN – WHY IGNORING CULTURE CLASH IS HURTING THE SOURCING INDUSTRY 

by Lisa Thorne, Founder & CEO at Together Global

When I founded Together Global in 2016, it felt like I’d discovered an exciting gap in the market, which global organisations would be clamouring for. Working in large organisations, I’d seen ‘culture clash’ (conflicts arising from cross-cultural interaction) everywhere, resulting in massive value leakage that wasn’t being addressed. Yes, there was traditional cultural training, but it focused on what-to-do or not-to-do when interacting with ‘the other side’. It wasn’t addressing the impact of culture clash on performance, morale and ultimately ROI.

In private, Western leaders described their frustration when the answer to every question from Indian delivery teams seemed to be ‘yes’, then turned out to mean ‘yes’, ‘maybe’, ‘I don’t know’, or ‘no’. In private, Indian delivery teams and leaders expressed frustrations from their perspective.

Why was nobody addressing this? I could only conclude that it’s too taboo in the corporate world. Awkward. Difficult. Racist even? Corporate language is always positive in tone, with negative words avoided in case they generate unfavourable reactions. The corporate world talks of challenges, never problems. Culture clash is a problem.

I developed the CAT (Cultural Alignment Transformation) programme to tackle culture clash in business head on. Our solution framework identifies ‘friction’ (the tension that arises when working cross-culturally), then removes it so global teams are able to work efficiently, aligned to a shared high-performance culture.

Anonymous interviews with Western leaders were like therapy sessions; outpourings of all the issues that were frustrating them. “It’s like ground hog day”, one leader I spoke to said. “The Indian teams say they’ll escalate issues when they arise, then they don’t. I don’t understand why.” Then, interviewing Indian teams, I found that everyone denied that there were any issues at all. Everything was perfect. It was only when I’d developed tools and techniques to get honest, candid feedback that we were able to get visibility of the frustration that exists on all sides.

It took many years to develop the CAT programme, and when it was tried-and-tested, I really did think it would be an ‘easy sell’ in the sourcing industry. I was wrong.

The reactions I got ranged from cautious interest to complete denial. Many senior leaders were excited at the prospect of finally addressing the ‘elephant in the room’, but the follow-up call with their boss never happened. I remember one senior executive saying that the CIO he reported into wouldn’t want to ‘admit’ they have this problem, even though (of course) they did. This turned out to be a common reaction.

Once I was at dinner with a senior banker when I got an email on my phone from another banker saying they’re not interested in CAT because they ‘don’t have this problem’. “We certainly do!”, laughed my dinner companion. However, the follow-up conversations with his bank never got past HR.

When able to deliver it, we find the CAT programme works brilliantly and delivers measurable business value. Operating as a neutral 3rd party, we create a safe space in which to have difficult conversations around behaviours without the finger-pointing. Our strapline’s ‘It’s not you, it’s not them, it’s culture.’

We also found that getting CAT past the starting line is not just difficult because of the taboo subject matter, but because it’s a new solution.

CAT’s been developed from scratch as a new solution to an old problem. Everyone’s used to culture clash, it’s like background noise, not an issue to be fixed. Clients are often reluctant to acknowledge any cultural issues with their global teams. They’re concerned they’ll look bad if they admit to them, so they don’t. And if nobody else is addressing them, why should they?

Fortune favours the brave, and we’ve been fortunate to have worked with forward-thinking clients that acknowledge they have this problem and want to do something about it. They’ve been amazed to discover all the value leakage that was happening right under their noses and delighted to be able to stop it, without upsetting or offending anyone. Quite the opposite. All parties collaborating to resolve thorny issues like delivering on schedule, based on new mutual understanding, is exciting and powerful stuff.

The GSA champions sourcing industry new best practice, and we’re delighted to be partnering to introduce CAT to GSA members to boost their cross-cultural performance and engagement - with measurable before and after results.

Contact shivanik@gsa-uk.com to find out more about how cultural alignment and the CAT programme can help your global teams.


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