This document discusses cultural differences that can impact virtual teams and introduces a four-phase cultural RISK process to manage these differences. It uses a global virtual team called the Z-team as an example. The four phases are: 1) Recognize cultural differences, 2) Understand their impact, 3) Strategize best options, 4) Apply cultural knowledge. For the Z-team, differences in goal setting caused problems. The strategic option chosen was temporary assimilation to the Japanese approach with a long-term blend. Additional skills were needed like cross-cultural communication. Being proactive can help reduce risks from unexamined cultural differences on virtual teams.

1. Taking off the Mask:
Cultural RISK and Virtual Teams
TMA World
Viewpoint

2. Taking off the Mask:
Cultural RISK and Virtual Teams
From phone interviews with members of a global virtual team (I’ll call them the Z-team)
I knew that most of the work to be done with them was related to
recognizing and managing the impact of cultural differences.
They were all smart people and they knew the
RECOGNIZE
fundamentals of good teamwork,
the
but they were lacking in an awareness of how
IMPACT unexamined cultural orientations were
of cultural differences influencing their interactions for the worse.
and
STRATEGIZE
The distance and lack of physical contact among
best options while applying
self-management the members was masking – but not eliminating
KNOW-HOW – cultural differences.

3. Taking off the Mask:
Cultural RISK and Virtual Teams
My task was to lead them toward a higher level of performance. Here’s how.
I define the cultural RISK process as a four-phase approach to cross-
cultural management.
First, you must be able to Recognize the cultural differences at work in a
situation.
Secondly, you need to understand the actual or
RECOGNIZE
potential Impact of those differences on how
the
you work together.
IMPACT
of cultural differences
and Third, you need to Strategize about the best
way forward, and lastly you need to apply
STRATEGIZE
best options while applying Know-How for implementing your strategy.
self-management
KNOW-HOW

4. Taking off the Mask:
Cultural RISK and Virtual Teams
Let me illustrate this process by using the Z-team as an example. RECOGNIZE
IMPACT
RECOGNIZE Utilizing the Worldprism™ Profiler model of cultural
STRATEGIZE
differences, I saw several areas that were creating havoc.
KNOW-HOW
Let me summarize some of the major differences in the chart
below:
Worldprism™ JAPANESE FRENCH
dimensions members members
RELATING Group focus Individual focus
Implicit communication Explicit communication
Formal social etiquette Casual social etiquette
REGULATING Risk-avoiding Risk-taking
Punctuality Flexibility
Bottom-up Top-down
REASONING Concrete, fact-based thinking Conceptual, logical thinking
Linear process Spiral process
Preference for high level of detail Preference for general principles

5. Taking off the Mask:
Cultural RISK and Virtual Teams
Before working with the team to identify cultural differences, many of the internal
tensions were seen as personality-based. By de-personalizing many of the differences and
putting them into the culture arena it was possible to discuss the tensions in a more
objective and productive way. Individuals didn’t need to feel under personal attack.
IMPACT
RECOGNIZE It should be obvious that there were significant
the cultural differences on the team. The next step
in the process was to identify the actual and
IMPACT
of cultural differences potential impact of these differences on team
and
collaboration.
STRATEGIZE
best options while applying
For example, on activities like participation,
self-management
problem-solving and decision making, running
KNOW-HOW meetings, information sharing, goal setting and
planning, conflict management, and
communication

6. Taking off the Mask:
Cultural RISK and Virtual Teams
IMPACT RECOGNIZE
IMPACT
One area in which I could see a major problem on the Z-team was in
goal-setting and planning. STRATEGIZE
At the end of a team-building session, the French were very happy KNOW-HOW
to set objectives and milestone dates.
For them, the dates would only be a guideline; there was always room for some
flexibility.
The Japanese members became very uncomfortable. First, all the stakeholders
impacted by the decisions were not present and, therefore, no consensus could be
reached.

7. Taking off the Mask:
Cultural RISK and Virtual Teams
IMPACT RECOGNIZE
IMPACT
Given a lack of consensus, it was also, impossible to commit to any date.
Once a date had been agreed to – in their eyes – it was fixed. STRATEGIZE
KNOW-HOW
It would cause great loss of face to miss the date. There was a completely
different perception of risk.
The reality on the team was that the Europeans would set goals and make plans
while the Asian members would avoid, withdraw, be vague and non-committal.
Conversations would go around in circles with each side thinking the other was crazy.

8. Taking off the Mask:
cultural RISK and Virtual Teams
STRATEGIZE RECOGNIZE
In any cross-cultural interaction, there are always strategic IMPACT
options. One side can: STRATEGIZE
KNOW-HOW
Accommodate to the other (“I’ll make these adaptations to work
effectively with you.”)
Assimilate (“I’ll do it your way.”)
Blend (“Let’s mix both approaches.”)
Create (“Let’s find a new way that can work for both of us.”)
Separate (“You do it your way, and we’ll do it our way.”)
The key criteria when choosing an approach should be which strategy offers
the greatest potential for creating value for the business

9. Taking off the Mask:
cultural RISK and Virtual Teams
STRATEGIZE RECOGNIZE
In terms of the Z-team, the chosen short-term strategy for moving IMPACT
forward in goal setting and planning was to assimilate – the French STRATEGIZE
to the Japanese approach. KNOW-HOW
There was no way the Europeans were going to change the very deep-rooted, consensual
approach in the Asian business.
To fight against it would simply increase resistance.
The medium term strategy was to work together to find
a good blend of approaches – one that handled lower risk
items differently from the higher risk ones (ones needing
a higher level of consensus and planning).

10. Taking off the Mask:
Cultural RISK and Virtual Teams
KNOW-HOW RECOGNIZE
The last stage in the process was to develop IMPACT
the skills needed to implement the strategies STRATEGIZE
successfully. KNOW-HOW
Some of this skill-building on the Z-team had
actually begun in the Recognize phase,
particularly developing cultural perceptiveness
and empathy.
Additional skills needed on the Z-team included
spoken and written cross-cultural
communication, and win-win negotiating.

11. Taking off the Mask:
cultural RISK and Virtual Teams
KNOW-HOW RECOGNIZE
As global companies seek to leverage their IMPACT
internal or outsourced distributed talent, global STRATEGIZE
virtual teams are becoming the norm. KNOW-HOW
So much goes unobserved and unspoken on
cross-border virtual teams; differences tend to
hide under a mask created by distance and
impersonal technology.
Opportunities for discussing the actual or
potential impact of cultural differences on team
success are often only created after damage
has already been done – when the silence is
recognized to be resentment rather than
agreement.
Being proactive with the cultural RISK process can help reduce the risk.

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