Imagine being in a work meeting, sitting among international colleagues, when suddenly one of them, without blinking, says to you: “Your strategy is completely incompetent and your leadership needs to improve drastically.”. Sounds like a bomb, doesn’t it? But for him, this is just a show of professional sincerity.
If you come from a more indirect culture, you most likely think that your interlocutor has just declared war on you. However, In your mind, what you just did is a favorsaving you detours. This is one of those intercultural clashes that, if you don’t understand, can make you lose not only your patience, but also millions in misinterpreted decisions.
The professors at INSEAD, a school recognized for its international character, where I am right now within the framework of a program designed to develop skills as a management advisor, maintain that know how to read between the lines to address these cultural differences in the highest governing body It is not a luxury but a strategic necessity.
Erin Meyerone of the teachers I mentioned, in How To Say This is a Crap in Different Cultures, illustrates how the problem is not in what we say, but in how we say it. The Dutch, for example, are known for their brutal candor, while the British soften their criticism so much that you might be confused and think they are congratulating you.. If you can’t decipher those signals, you run the risk of making decisions based on misperceptions—something unforgivable in a boardroom.
This is not trivial: 70% of digital transformation projects fail, and one of the main culprits is a lack of effective communication. Imagine leading a critical project in a global company where the feedback from a member of the German team seems like just an optional suggestion to you, when in reality it is a direct order. Or that your American colleague’s “fantastic job” praise comes with covert criticism that you don’t detect until it’s too late.
For counselors, mastering this “cultural translation” is essential. It’s not just about being diplomatic or avoiding misunderstandings: It’s a matter of business survival.. Boards of directors, especially in multinational companies, should be an example of how to navigate these nuances to ensure everyone is aligned, no matter how subtle or direct the message. If your multicultural team loses 20% of productivity because they do not understand each other, you are throwing decisions that could have transformed the company to the ground..
Speaking of major misunderstandings in intercultural negotiations, A quite famous case is the failed agreement between Microsoft and Nokia. In 2013, Microsoft acquired Nokia’s mobile phone division, but the negotiation was marked by important cultural differences between both companies. While Nokia, with Finnish roots, valued hierarchy and slow decision-making, Microsoft, with its American approach, adopted a faster and more direct pace.. These cultural contrasts contributed to a failed integration, and Microsoft ended up writing almost all the value of the purchase out of its accounts, resulting in huge losses and massive layoffs shortly after the agreement.