This document provides an overview of cultural differences and perspectives. It discusses definitions of culture, understanding cultural differences in areas like communication and time, characteristics of cultures, impacts on culture for joint ventures, hidden individual needs that drive cultures, and an example of the Netflix culture. The document contains drills and examples to illustrate key points about international culture and cultural intelligence.

1. An international perspective on culture by Toronto Training and HR March 2011

2. 3-4 Introduction to Toronto Training and HR 5-7 Definitions 8-12 Understanding cultural differences 13-14 Drill A 15-17 Characteristics of cultures 18-21 Impacts on culture for joint ventures 22-23 Drill B 24-25 Four major cultures 26-27 Three major drivers 28-33 Hidden individual needs 34-35 Drill C 36-47 An example-Netflix 48-49 Drill D 50-51 Conclusion and questions Contents Page 2

3. Page 3 Introduction

6. Improving employee engagement & morale

8. Page 6 Definitions 1 of 2 Tylor’s definition

9. Page 7 Definitions 2 of 2 What is culture? Culture is… Forces shaping individual culture Dangers around culture

10. Page 8 Understanding cultural differences

11. Page 9 Understanding cultural differences 1 of 4 Eating habits Religion Family and gender Communication and body language Dress code Traffic Time

12. Page 10 Understanding cultural differences 2 of 4 Building cultural awareness Host country’s culture Cultural shock The adaptation stages

13. STAGE SITUATION APPROACH REACTION Honeymoon First exciting contact with new culture Observe Excitement; Curiosity; Slight concern Initial confrontation First intensive feeling with new culture Solve problems in familiar ways Confusion; Mystified about; Others behaviour Understanding cultural differences 3 of 4 Page 11

14. STAGE SITUATION APPROACH REACTION Adjustment crisis Problems intensify Experimentationwith new behaviours Frustration; Anger; Confusion about Recovery Sense of belonging to culture emerges New strategies to help one function effectively New culture is understandable Enjoying many aspect of it Understanding cultural differences 4 of 4 Page 12

15. Page 13 Drill A

16. Page 14 Drill A

17. Page 15 Characteristics of cultures

18. Characteristics of cultures 1 of 2 ALL CULTURES HAVE AT LEAST FIVE CHARACTERISTICS IN COMMON: Culture is learned Culture is based on symbols Culture is shared Culture is patterned or integrated Culture is usually adaptive Page 16

19. Characteristics of cultures 2 of 2 Cultures are learned and the product of symbols, especially language They comprise groups from 40-50 to millions that share common languages and customs In more complex societies, subcultures may develop, like the Amish They are generally integrated and adaptive Exceptions occur when resources become exhausted or they are forced into rapid changes Page 17

20. Page 18 Impacts on culture for joint ventures

21. Impacts on culture for joint ventures 1 of 3 Power distance Individualism/collectivism Uncertainty avoidance Long term orientation Cultural intelligence Linguistic intelligence Spatial intelligence Interpersonal intelligence Page 19

22. Impacts on culture for joint ventures 2 of 3 Joint venture success Individual success Organizational success Page 20

23. Impacts on culture for joint ventures 3 of 3 Cultural Intelligence Cultural Diversity Application: Joint Venture Improving Cultural Intelligence Hofstede’s 5 Dimensions Page 21

24. Page 22 Drill B

25. Page 23 Drill B

26. Page 24 Four major cultures

27. Four major cultures Command and control Competitive Collaborative Innovative Page 25

28. Page 26 Three major drivers

29. Three major drivers Hidden individual needs Lived values Agreements-tacit, conscious Page 27

30. Page 28 Hidden individual needs

31. Page 29 Hidden individual needs-canaries Need to feel safe Look for concerns Self preservation focus Flight or fight Address their needs and everyone is better off Culture of paranoia

32. Page 30 Hidden individual needs-penguins Safety is in the rules Obedience is to be praised Respect authority Creativity is suspect Revert to Canaries if scared Culture of stability

33. Page 31 Hidden individual needs-eagles Love control Want to WIN Creatively get their own way Insist on obedience Need to be recognized Culture of competition

34. Page 32 Hidden individual needs-barn swallows Love teams Work for the group Learning is key Diversity is a way of life Emotions are important Culture of collaboration

35. Page 33 Hidden individual needs-swans Creativity and self-expression are key Self-directed Love to achieve goals and make you happy - their way Personal satisfaction over status and stuff Culture of innovation

36. Page 34 Drill C

37. Page 35 Drill C

38. Page 36 Example-Netflix

39. Example-Netflix 1 of 11 ASPECTS OF THE NETFLIX CULTURE Values are what we Value High Performance Freedom and Responsibility Context, not Control Highly Aligned, Loosely Coupled Pay Top of Market Promotions and Development Page 37

40. Judgment You make wise decisions (people, technical, business, and creative) despite ambiguity You identify root causes, and get beyond treating symptoms You think strategically, and can articulate what you are, and are not, trying to do You smartly separate what must be done well now, and what can be improved later Impact You accomplish amazing amounts of important work You demonstrate consistently strong performance so colleagues can rely upon you You focus on great results rather than on process You exhibit bias-to-action, and avoid analysis-paralysis Communication You listen well, instead of reacting fast, so you can better understand You are concise and articulate in speech and writing You treat people with respect independent of their status or disagreement with you You maintain calm poise in stressful situations Innovation You re-conceptualize issues to discover practical solutions to hard problems You challenge prevailing assumptions when warranted, and suggest better approaches You create new ideas that prove useful You keep us nimble by minimizing complexity and finding time to simplify Curiosity You learn rapidly and eagerly You seek to understand our strategy, market, subscribers, and suppliers You are broadly knowledgeable about business, technology and entertainment You contribute effectively outside of your specialty Courage You say what you think even if it is controversial You make tough decisions without excessive agonizing You take smart risks You question actions inconsistent with our values Honesty You are known for candor and directness You are non-political when you disagree with others You only say things about fellow employees you will say to their face You are quick to admit mistakes Selflessness You seek what is best for Netflix, rather than best for yourself or your group You are ego-less when searching for the best ideas You make time to help colleagues You share information openly and proactively Passion You inspire others with your thirst for excellence You care intensely about Netflix' success You celebrate wins You are tenacious Page 38

41. Example-Netflix 3 of 11 VALUES ARE WHAT WE VALUE Judgement Communication Impact Curiosity Innovation Courage Passion Honesty Selflessness Page 39

42. Example-Netflix 4 of 11 HIGH PERFORMANCE Keeper test Honesty Loyalty Hard workers Brilliant jerks Great workplace is stunning colleagues Page 40

43. Example-Netflix 5 of 11 FREEDOM AND RESPONSIBILITY Rare responsible person Curtailing freedom Impact of growth and complexity growth Talent density Necessary rules Good v bad processes Inhibiting chaos Need for flexibility Page 41

44. Example-Netflix 6 of 11 CONTEXT NOT CONTROL Exceptions Good context Page 42

45. Example-Netflix 7 of 11 HIGHLY ALIGNED, LOOSELY COUPLED Three models of corporate teamwork Goal is to be big and fast and flexible Page 43

46. Example-Netflix 8 of 11 PAY TOP OF MARKET Three tests Takes great judgement Titles are not very helpful Annual compensation review No fixed budgets Compensation not dependant on success of company Bad ideas When it is done right… Page 44

47. Example-Netflix 9 of 11 PAY TOP OF MARKET Bad ideas Versus traditional model Employee success Good for each employee to understand their market value Efficiency Optional options Page 45

48. Example-Netflix 10 of 11 PROMOTIONS AND DEVELOPMENT Baseball analogy Netflix does not have to be for life Two necessary conditions for promotion Timing Development Page 46

49. Example-Netflix 11 of 11 Why is culture important? What is our culture trying to support? Page 47

50. Page 48 Drill D

51. Page 49 Drill D

52. Page 50 Conclusion & Questions

53. Page 51 Conclusion Summary Questions