Cultural Differences

Graham Hill
Guru
Member

Posted 04-Jan-2005 03:30 AM
Silvana

Could you describe some of the key differences between Spanish, Anglo-American and German cultures in a work environment.

I am particularly interested in how these cultural differences drive different approaches to customer-orientation.

Thanks, Graham

Posted 04-Jan-2005 11:58 AM
Hello Graham,

basically and quickly summarizing, the core differences and their impact on a customer centric organizational culture are:

Anglo-American: open and transparent working environment, teamwork, non-hierarchical, benefit driven and efficient ENABLES a customer centric business strategy, serving a customer is understood as a natural process to keep in business.

German: clear roles and responsibilities, thinking in-the-box, result driven, very technical, old school management with defined hierarchies, very professional regarding committed time and budget SUPPORTS customer centric procedures more than a customer based business strategy. Focus is the efficient process, not the longterm exploitation of state-of-the-art CRM

Spanish: personal networks are a must in the business and working environment, once you're in you're in, incentivation not always follows "best in perform" but "best in relate", very hierarchical and title-oriented MAKES customer centric business A CHALLENGE. If the annual results and targets are achieved, why care for the customer? The customer is not seen as an asset, more of someone who disturbs...

Graham Hill
Guru
Member

Posted 05-Jan-2005 11:01 PM
Thanks Silvana

I also have an observation and an additional question.

First the observation.

I was discussing the IBM 'CRM Done Right' study with some IBM CRM consultants at a recent mobile telecoms CRM conference. They suggested that the dominant Anglo-American approach to CRM strategy implementation is very different to the European approach. The Anglo-American approach is primarily a command and control one with incentives for compliance and punishments for non-compliance. They drew the parallel with the Anglo-American emphasis on the role of the heroic leader winning against all odds. Let's call the approach 'mandated change from the top'.

In contrast, the European approach is primarily one of providing a strategy framework that enables and influences the organisation to change, with appropriate incentives to support the change at all levels. Punishment doesn't play a role. They drew the parallel with the emphasis on consensus and teamwork often found in European companies. Let's call the approach 'enabled change from the bottom'.

The IBM consultants didn't offer an opinion as to which one produces the most effective CRM implementation.

Do you recognise the different styles of CRM strategy implementation and do you think there are more subtle differences between the approaches typically taken by German and Spanish companies? And in their effectiveness?

Graham Hill
Independent CRM Consultant

Posted 06-Jan-2005 09:18 AM
While I am neither a consultant or CRM expert, I take issue with the classifications and attributes listed by Ms. Buljan. I am a naturalized citizen (born in Germany) and have had the occasion to live in New Mexico, which is very heavily Hispanic. I now live in Alaska. It seems to me that the descriptions Buljan gives are driven more by stereotype than fact.

In my experience, many American companies are still very heirarchical in design, and the open and transparent work environment to which she refers is the exception rather than the norm. I work in a retail environment (big ticket recreational vehicles) and have had almost thirty years of experience in that arena. With personal experience on both sides of the table, I still see huge strides need to be made to make companies more customer centric. Someone always needs to consult with their manager before a decision can be reached!

As an aside, many of my experiences with hispanic owned companies have been very positive. These were mostly smaller businesses. They took great pride in their products and services and relied heavily on "word of mouth" advertising. Most of the companies I frequented were referred to me by other satisfied customers. You cannot get more customer centric than that! Indeed, in large ticket sales, word of mouth can literally make you or break you. As a result, many are defacto customer centric organizations without necessarily being aware of it. They do, however, go kicking and screaming all the way!

Let's not even get into the "German" thing!

Ivar Aune
Member

Posted 27-Jan-2006 12:38 AM
Hello Graham,

I have been working in the CRM area both as a consultant and a user under American and European leadership.

From my experience the question has a lot to do with what kind of CRM project you are looking at (or which phase of the strategy implementation). I do not share the view of the European OR the American model being the best. They are simply different models with individual strenghts and weaknesses.

In some cases the initial CRM project is simply aimed at gaining business control and overview of the customer situation in order to do improvements in round number two. In such a scenario I have seen the American model work very well, simply because the command from the shareholders and the C-level executives is actually put into action without questions from the employees. The European equivalent would need a lot more "internal selling" to produce such an overview of the customers.

When it comes to implementing customer centricity at an individual level (employee), rather than an organizational one, in terms of customer centric marketing and customer support, I find the European model to be very efficient because of the real individual contributions to the concensus achieved, and hence the strong commitment and creativity this generates from the individuals. People care more for decisions they have made themselves, than for decisions made by others.