1. Multicultural Leadership
for Organizational Change
Strategies to move a Multicultural Organization To Action
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Bob Carlston @
Konza Partners

2. What is Leadership?
Bob Carlston @
Konza Partners
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3. Organizational Change is
Challenging
 Between 60% and 70% of Change Initiatives Fail
{Source: Harvard Business Review; “Change Management Needs to Change”; 2013}
“The content of change management is reasonably correct,
but the managerial capacity to implement it has been
woefully underdeveloped.”
Bob Carlston @
Konza Partners
3

4. What managerial
capacities are missing?
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Bob Carlston @
Konza Partners

5. Psychology of Change
Management
 McKinsey; Emily Lawson and Colin Price; “The psychology of
change management”; June 2003.
 Four Basic Conditions necessary for Employees to Change
 A Compelling Story
 Role Modeling
 Reinforcing Mechanisms
 Capability Building
Bob Carlston @
Konza Partners
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6. Psychology of Change
Management
 McKinsey; Carolyn Aiken and Scott Keller; “The irrational
side of change management”; April 2009.
 “This prescription is well grounded…”
 Intuitive Appeal
 Common Sense
 Then why does it go wrong so often?
“Because when they implement the prescription, they
disregard certain, sometimes irrational—but predictable—
elements of human nature.”
Bob Carlston @
Konza Partners
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7. What are these “sometimes
irrational—but predictable—
elements of human nature”?
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Bob Carlston @
Konza Partners

8. Culture/Beliefs/”Listening”
 Personal Culture
 Organizational Culture
 Professional Culture
 Heritage/Familial/Geographic Culture
What is missing is Cultural Literacy &
Competencies
Bob Carlston @
Konza Partners
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9. Something to consider,
aren’t all Organizations
Multicultural?
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Bob Carlston @
Konza Partners

10. Change Acceptance Process
 Four Stages – defined by Kets de Vries & Miller
 Pain causes Awareness
 Reaction of Shock & Disbelief
 Defense Mechanisms Activate
 Finally, Recognition that Change Must be Made
Bob Carlston @
Konza Partners
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11. Keys to Overcome Resistance
 Introduction of Directed Actions in the “Real” World
 New Technologies
 New Structures
 New Activities
 New Interpretation of Events, & Shared Understanding
 Understanding of “Unconscious” Actions , Promoting New
Behaviors
Source: Kets de Vries
Bob Carlston @
Konza Partners
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12. Process for Effective Multicultural
Change
 Creating a Shared Mindset
 Changing Behavior
 Institutionalizing Change
 Transforming the Organization
Sources: Konza Partners, & INSEAD
Bob Carlston @
Konza Partners
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13. Case Study #1 – China
MNC
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Bob Carlston @
Konza Partners

14. China MNC
 “Greater China” Organizational Transformation
 Wholly-owned Subsidiaries
 Hong Kong & Macau
 People’s Republic of China
 Taiwan
 99% Local China Employees
 US Headquarters & Regional Involvement Environment
 Budgets & Sales Objectives
 Primary Messaging/Positioning
 Vacillating Control versus Hands-off Involvement
Bob Carlston @
Konza Partners
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15. China MNC
 Organizational Change Objectives
 Extend Go-to-Market Model
 Extended product lines
 Expansion into Services
 Share “best of location” Skillsets & Capabilities
 Rebrand MNC in China for Extended GTM Model
 Define & Instill Consistent Message across China
 Share Resources across China Subsidiaries
 People
 Skills
 Budget
Bob Carlston @
Konza Partners
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16. China MNC
 Culture Proved to be a BIG Factor
 US, Region, & Local Involvement
 Involved Cultures
 American
 European, including Danish, British, French, & German
 Chinese, including Taiwan, Hong Kong & South China, & North China
 Cultural Change Leadership Plan
 Chinese Cultures Lead the Way
 Chinese Cultures need Training & Awareness
 Western “Top Down” Approach Inappropriate
 Keep Western Cultures Informed, but Observational Only
Bob Carlston @
Konza Partners
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17. China MNC
 Multicultural Approach
 Build a Cross-cultural China Team
 “Never surprise/embarrass the Emperor”
 “Divide & Conquer” within the Framework of the Larger Plan
 Inside-Out Approach
 Coach to be Successful
 Group & Business Unit Leaders
 Team Managers
 Technical & Skillset Leaders
 Business Partners
 Key Clients/Customers
Bob Carlston @
Konza Partners
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18. China MNC
 Key Success Factors
 Support & Understanding of Need from the Top
 Shared Understanding & Respect from the Top
 Multicultural Leadership Competencies Employed
 Flexibility in Strategy & Tactics
 Cultural Sensitivity
 Ability to deal with Complexity & Ambiguity
 Resilience & Resourcefulness
 Honesty & Integrity
 Personal Stability & Behavioral Flexibility
 Sound Business & Technical Skills
 Empathy & Non-judgementalness
Bob Carlston @
Konza Partners
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19. Case Study #2 – Start-up
Asia Expansion
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Bob Carlston @
Konza Partners

20. Start-up Asia Expansion
 Market Expansion & Fee-based Business Model
Transformation
 Silicon Valley well-funded Start-up
 “Viral” Business Model
 Many “users”, with No Revenue
 3rd Round Funders from Singapore & Japan
 Employee Mix
 Founders from Israel
 Most Employees are American
 Mergers & Acquisition Environment Rampant
Bob Carlston @
Konza Partners
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21. Start-up Asia Expansion
 Organizational Change Objectives
 Extend Go-to-Market Model
 Create a Fee-based GTM Model & Infrastructure
 Expand into Asia Markets
 Manage Asia Investors Effectively
 Create Partner Program & Supporting Environment
 Asia Expansion Partners & Investors
 Co-market & Sell to Initial Customers
 Unplanned Change Needs
 Merged Company
 Changed Product Set & Marketing Message
Bob Carlston @
Konza Partners
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22. Start-up Asia Expansion
 Culture a BIG Factor
 Large Asian Investor Organizations
 Large Chinese bank from Singapore
 Two Large Commercial Companies from Japan
 Involved Cultures
 American
 Israeli
 Singaporean & China Chinese
 Japanese
 Cultural Change Leadership Plan
 Local Cultures Lead the Way
 Keep US Leadership in the US
 Western “Top Down” Approach Inappropriate
 Keep Western Cultures Informed, but Observational Only
Bob Carlston @
Konza Partners
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23. Start-up Asia Expansion
 Multicultural Approach
 Build & Support Local GTM Teams as Business Partners
 Allow Partners to Lead, with Multicultural Leadership Support
 Lead Investors to Define GTM Objectives
 Coach to be Successful
 Investment Managers & Executives
 GTM Partners
 US Teams
 Marketing
 Product Development & Support
 Executives & US Investors
 Key Clients/Customers
Bob Carlston @
Konza Partners
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24. Start-up Asia Expansion
 Key Success Factors
 Excellent, Smart, & Capable Investors/Partners
 Changes in Silicon Valley towards Revenue
 Multicultural Leadership Competencies Employed
 Flexibility in Strategy & Tactics
 Cultural Sensitivity
 Ability to deal with Complexity & Ambiguity
 Resilience & Resourcefulness
 Honesty & Integrity
 Personal Stability & Behavioral Flexibility
 Sound Business & Technical Skills
Bob Carlston @
Konza Partners
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25. Multicultural Literacy
 Personal Literacy – understanding & valuing oneself
 Social Literacy – engaging & challenging other people
 Business Literacy – focusing & mobilizing one’s organization
 Cultural Literacy – valuing & leveraging cultural differences
Bob Carlston @
Konza Partners
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26. Kuhlman & Stahl McCall & Hollenbeck
Bob Carlston @
Konza Partners
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Competencies for Multicultural
Leadership
 Tolerance for Ambiguity
 Behavioral Flexibility
 Goal Orientation
 Sociability & Interest in Other
People
 Empathy
 Non-judgementalness
 Meta-communication Skills
 Flexibility in Strategy & Tactics
 Cultural Sensitivity
 Ability to deal with Complexity
 Resilience & Resourcefulness
 Honesty & Integrity
 Personal Stability
 Sound Business & Technical
Skills

27. Sources & Further Reading
 Harvard Business Review; “Change Management Needs to Change”; 2013
 McKinsey; Emily Lawson and Colin Price; “The psychology of change management”; June 2003
 McKinsey; Carolyn Aiken and Scott Keller; “The irrational side of change management”; April 2009
 Kets de Vries & Miller
 Konza Partners, & INSEAD
 Rosen & Digh; 2001
 Kuhlman & Stahl; 2001
 McCall & Hollenbeck; 2002
 Ken Blanchard; “Mastering the Art of Change”; January 2010
 Elsevier; Paul Caliguri & Ibraiz Tarique; “Dynamic cross-cultural competencies and global leadership
effectiveness”; 2012
 Compasspoint; Laurin Y. Mayeno, MPH; “Stages of Multicultural Organizational Change”; July 2007
 Civil Service College Singapore; Khoo Ee Wan; “The Role of Leadership in Organizational
Transformation”; May 2013
 INSEAD; Kets de Vries/Guillen Romo/Korotov; “Organizational Culture, Leadership, Change, and
Stress”; 2009
Bob Carlston @
Konza Partners
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