Management: Performing in style

Being flexible, sensitive and adaptable to different styles and cultures, coupled with a working knowledge of at least one other language, are the often quoted desired attributes for managing internationally.

However, the Cranfield European Top Teams survey provides different insights. In-depth analysis of senior executives from more than 2,500 companies representing the UK, Ireland, France, Sweden, Germany, Finland, Spain and Austria clearly highlights no common European management style but, instead, four distinct styles of strategic management, three of which bear little relationship to ethnic origin or national culture. Fluency in one or more foreign languages is, in itself, insufficient.

Interestingly, the styles do not just refer to differences in conducting managerial work. They also touch on how business success can be achieved or business damage incurred, if such styles are well practised or mishandled.

In essence, getting the styles wrong does not just mean calming down over-sensitive foreigners, but more likely lost business, rising costs and/or the demotivation and resignation of key personnel.

Directive leadership: Spanish, British, Finnish and half of the Irish companies strongly displayed the characteristic of strong, bordering on autocratic, leadership. Qualities of determination and a passionate belief in the vision being pursued, coupled with a people orientation, characterise how strategies are formed and initiatives implemented.

The dialogue within such teams is likely to be varied. Straying off the agenda if a topic of interest is being discussed, is acceptable. Gaining 'credits' requires displays of 'being able to take it' or at least not being a 'wimp', especially when being cross-examined for achieving poor business performance.

For example, the managing director of a subsidiary was under scrutiny at an operations committee meeting by the chairman for not meeting business targets. He had to present his case and justify his performance while standing for three hours. The chairman told the other team that no one else would have to 'stand up for themselves' as their results indicated they had already done so throughout the year.

Consensus-driven: The senior managers of Swedish and the remaining Irish companies would go to considerable lengths to ensure clarity of communication and shared understanding of policies and operational concerns through considerable discussion and attention to detail.

Talking is not enough. The road to agreement and positive displays of commitment requires tending to what some might consider minutiae, as people know exactly what is happening and where they stand. It is crucial to get issues on the agenda as deviation from the agreed course would not easily be tolerated.

Striving for the common goal: Emphasis on professional skills coupled with a strong leadership drive and a discipline for effective follow- through helps clearly identified ends to be met. Not surprisingly, the top management of German and Austrian companies fall into this category. Surprising, however, is the degree of friction and poor personal relationships exhibited. Blaming and stereotyping are all too common. The goals and the system take precedence over individuality and sentiment.

Managing as elites: The French stood out - as the only ones who as a nation display a particular management style. Surprisingly, no other European companies showed similar characteristics.

The predominant influence of the Grandes Ecoles is obvious, as displays of autocracy, drive, debating qualities and considerable intellectual sophistication are linked to personal styles of being distant and communicating on a 'need to know' basis. Individualism is coupled with intellectualism. Attention to detail and compliance with systems and procedures is evident. The discipline for 'follow through', however, is lacking.

Imagine the dons of an Oxbridge college being asked to run a multinational company. Common room intellectualism would merge into boardroom behaviour, with each of the team expressing profound views, and critical comments being addressed as theory, not executive practice.

The resentment of even French subordinates lingers only just below the surface. For the non-French, the reaction is bewilderment. However, the depth of analysis and sophistication of dialogue among the elites is outstanding.

Many Francophiles have expressed the view that if only the best of the French and the British could be combined, the pairing would be unbeatable. Evidence now strongly supports such sentiments.

It also suggests that getting it wrong in a senior international management team means the business suffers.

Mishandling relationships where there is autocratic leadership may disrupt team relationships and lead to demotivation. The corrective action is to pep people up so that they want to perform better.

Upset people in an elitist culture like the French and a misunderstanding of business requirements may occur. The sales and marketing needs of different markets may not be understood. And the market data fed into the business plans that strongly determine future cost and revenue targets may be wrong.

A French multinational operating in Eastern Europe set a modest country revenue target of Fr550m. What was achieved in that financial year was Fr46m. Although there was 'hell to pay', the same database was used in forming the next year's revenue targets, because it was felt the shortfall was due to local incompetence.

The implications of such findings for mergers, acquisitions and the running of multinationals, are fundamental. Similar symptoms in one context could mean morale concerns and in another a misunderstanding of market circumstances. Getting the styles right is a serious business.

The author is professor of management development and head of the human resources team at Cranfield School of Management.

Independent Comment
blog comments powered by Disqus
News in pictures
World news in pictures
       

Day In a Page

National archives: Edward VIII’s phone calls - and how MI5 bugged them

Edward VIII’s phone calls - and how MI5 bugged them

Newly unearthed papers reveal a shocking extra dimension to the constitutional crisis over monarch’s abdication
Sent down at the Old Bailey: A tour of the world's most famous court

Sent down at the Old Bailey

A tour of the world's most famous court
Hollywood's random acts of red-carpet kindness

Hollywood's random acts of red-carpet kindness

The Hangover actor Zach Galifianakis’s date for his movie premieres isn’t arm candy  – it’s his 87-year-old friend who he saved from homelessness
British football scores an own goal

British football scores an own goal

Many managers barely survive a year in post. Martin Baker talks to experts who make a case for clubs using forensic business skills to find the best staff
James Lawton: Sergio Garcia cracks as major fault line opens up again

James Lawton

Sergio Garcia cracks as major fault line opens up again
Dylan Hartley: Northampton have spent the season proving all our critics wrong

Dylan Hartley talks tough

Northampton have spent the season proving all our critics wrong
Watch out Watford: Here comes the secretive Bilderberg Group

Watch out Watford: Here comes the secretive Bilderberg Group

A meeting of global power brokers in a Hertfordshire hotel is exciting conspiracy theorists, but what are they really about?
'The ultimate all-in-one home entertainment system': Microsoft finally unveils its Xbox ONE console

'The ultimate all-in-one home entertainment system'

Microsoft finally unveils its Xbox ONE console
Plenty of Fish dating site founder pulls 'Intimate Encounters' option to ward off sleazy men

Plenty of sleaze

Dating website pulls intimate 'hook-up' section to curb harassment
Inferno author Dan Brown 'honoured' to be invited to join the Freemasons

The Freemasons’ Code

Dan Brown reveals the message that told him door to the lodge is open
Not secure any more: G4S boss heads for exit at last

Not secure any more: G4S boss heads for exit at last

Nick Buckles survived the Olympics débâcle and a £5bn bid fiasco but a profit warning finally triggered his downfall
How to say ‘I’m a sellout’: Tumblr’s David Karp’s message of reassurance to his staff sounded very familiar

How to say ‘I’m a sellout’

Tumblr’s David Karp’s message of reassurance to his staff sounded very familiar
Why clubs are keen to take a stand

Why clubs are keen to take a stand

There's a real desire around the grounds for safe standing. But will the authorities listen?
In the end the fans decided Tony Pulis had made a pig's ear of the job at Stoke City

In the end the fans decided Tony Pulis had made a pig's ear of the job at Stoke City

Disillusion with a siege mentality and negative playing style made change inevitable
James Lawton: The James Hunt I knew is the subject of a new F1 movie

James Lawton: The James Hunt I knew is the subject of a new F1 movie

British driver was fascinating man whose epic duel with Niki Lauda in 1976 was typical of an era of glamour and glory – but also the ever-present threat of death