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Foundations of

Leadership

Culture • Communication • Ethics

John Alexander Ph.D.

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FOUNDATIONS OF

LEADERSHIP

John Alexander

InterMedia Publications

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Foundations of Leadership

Also by John Alexander

The Inside Story: How Storytelling Inspires Change in Organisations, Companies and People(2000)How Swedes Manage (2002)A Nordic Community? Management and Business Styles in theNordic Countries (2003)Corporate Narrative: Communicating Values with Stories (2006)Consensus: The Hidden Codes of Swedish Leadership (2008)Lagom Sisu Manana: A Globalisation Survival Kit (2009)

© 2009 John Alexander

InterMedia PublicationsLondon and Stockholm

ISBN 0-906756-07-3www.johnalexander.sewww.lagomsisu.com

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CONTENTS

Management and Leadership 5

Cultural Perspectives 8

Models of Leadership 31

Communicating Values 34

Ethics and CSR 45

References 53

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Management and Leadership

At an inter-Nordic conference on leadership skills webegan listing the differences between being a boss andbeing a leader. Being a boss requires goodmanagement skills, being a leader – something else.Management is running the day to day routines of abusiness and takes up 80 – 90% of the time.

How do we define management? Management isreactive – it is the demands of short term problemsolving, implementing policies and dealing with theissues around staff, personnel and production.Management requires talking and organising,negotiating, phone calls and emails. Management isabove all, managing time – arranging meetings,analysing figures and spreadsheets, timetables andbeing ‘effective’.

So what does the 10 – 20% of leadership entail? Beinga leader is long-term, about planning, being pro-active, reflecting as well as doing, networking,networking, keeping up-to-date, reading – and mostessential of all – self-development.

In Foundations of Leadership our focus lies in self-development. This is because, firstly, it isquestionable whether ‘good leadership’ is somethingthat can be taught, and secondly, self-awareness canlead to a positive affect on the way we make decisions,

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how we define our values and morals, and how wenurture talent within ourselves and our colleagues.

This is borne out by how most people answer thequestion: ‘what makes a good boss?’ It is a questionthat has been asked in many different countries andmany different companies, yet the criteria is usuallyquite similar. A survey in Russia for example listedthe following:*

People skills and organisation skillsProfessional competenceHigh moral valuesBusiness skillsIQ, and high standard of educationStrong personalityAttractive behaviourEnsures company profitability

* Nation-wide surveys conducted in 100 residencies in 44 regions,territories and republics. Household interviews January 10-11 2004.A sample size of 1500 respondents. Additional polls of the Moscowpopulation, with a sample of 600 respondents, 2004.

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Is the Russian view so different to elsewhere inEurope? An international business survey (2002)asked employees in 15 European countries whichqualities were most favoured to rate their boss as ‘agood boss’. They listed:

a good listener integrity

problem solverco-operative

resourceful adaptable supportive

It’s a similar story for employees in the United States.American Airlines Executive Chairman Ed Brennansays there are six qualities that make ‘a greatcorporate leader’:*

a good listener integrity

consistency decisiveness knowing the business and a willingness to admit making a mistake

Regarding integrity, says Brennan, “I never didanything or asked anyone to do anything I couldn't gohome and explain to my kids.” About knowing thebusiness he says; “You can't fake it. People will know.”

* ‘Six qualities every great leader needs’ by Sarah Lourie, 20 Sep2004 | SearchCIO.com)

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Cultural PerspectivesKick Ass or Be Kind?

Criteria for good leadership may transcend nationalboundaries, but perspectives on how to become a goodleader are often imbued with cultural agendas.

Early 2008, high up on the US best selling leadershiptitles, was the book, Think Big and Kick Ass inBusiness and Life, by billionaire entrepreneur, DonaldTrump. Trump outlines tried and true strategies ofgetting rich, staying rich, commanding loyalty andstaying at the top.

Donald Trump made a fortune by finding and buyinglosing properties and turning them around. In the2000s, Trump’s net worth is estimated at around $4billion involving a range of interests including realestate, gaming, and sports and entertainment.Trump’s road to success, however, has all the ups anddowns of a roller coaster ride: in the early 1990s themedia had virtually written off Donald Trump. Hewas over $975 million in debt and nearly bankrupt.

But in 1997, at the age of 51, Trump declared in histhird autobiography, Trump: The Art of the Comeback,‘I'm a firm believer in learning from adversity.’ Themedia turned out to be wrong. In the 2000s DonaldTrump is now stronger, richer and, in his view, wiserthan ever before, and an entrepreneurial role model,

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not least for the participants of the Trump’s popularreality TV show, The Apprentice.

In Think Big and Kick Ass Donald Trump outlines hisstrategies for success:

Be vengefulInstil fearTrust no-oneBe deceitful

One critic writes: ’He uses this venue to rehash hisdisagreements with… anyone who's ever crossed him.It's not a pretty picture, but that's part of his point.It's a tough world out there, and you have to beequally tough to make your mark in it.’ Trumpdescribes, ’what it's like to feel the whole world'sagainst you… and to rise to dizzying heights ofsuccess by thinking big and kicking ass! It is anattitude that can be easily learned.’

Another reviewer recommends that, ‘Individuals whoaspire to have any kind of success in the brutal worldof business would do well to read this book.’

Think Big and Kick Ass may be an extreme examplebut not untypical of an acceptable strategy to successin US corporate life. Former CEO of General Electric,Jack Welch in Winning (2006) advocates toughmindedness and above all candour, detailing some ofhis leadership strategies outlined in Straight Fromthe Gut (2001).

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Jack Welch describes his ‘cruel to be kind’ approach asthe essence of corporate survival, including the much-debated practice of differentiation, which involveswinnowing 10% of the workforce at regular intervals.

While US executives and up-and-coming entrepre-neurs were concentrating on Winning and Think Bigand Kick Ass, top reading requirements for Swedishleaders included such titles as The Art of Being Kind,Good Business: Leadership, Flow and the Making ofMeaning, Not Just Money: Getting Better Bosses, andThe Boss Who Could Talk to His Colleagues: ImproveResults and Well-Being. Little here that relates to ‘thebrutal world of business’, ‘the whole world againstyou’, or ‘think big and kick ass.’

Stefan Einhorn’s Swedish bestseller defines kindnessas a desire to do good and to put this desire intopractice. Conflicts, he writes are destructive; ‘thereare only losers in conflicts. The only thing we canlearn from conflicts is how to avoid them in thefuture… we always lose by having enemies.’

Stefan Einhorn suggests that kindness and co-operation, in business and in life, has a long list ofadvantages which can be placed into four groups: goodfor self-image, good for relationships with people closeto us; good for our standing in the community; and –for those of religious disposition – good for relationswith a higher power.

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Recent studies in evolutionary psychology tend tosupport Einhorn’s claims – mutual reciprocity as abehavioural pattern pays off. Aggressions feedsaggression, rudeness invites rudeness, co-operationleads to co-operation; and even in the corporate world,people like to do business with people they like.

Who’s right? Donald Trump and the ideology of ‘getthem before they get you’, or Einhorn and ‘be kind’?The cultural contrast between these two extremescan be found in a range of writings. Camille Paglia inher assessment of US corporate culture writes:

‘… every workplace is hostile, as any man who hasworked his way up the cutthroat corporate ladder willtestify. Teamwork requires cooperation, butcompanies without internal and external competitionremain stagnant. Innovation and leadership requirestrategies of opposition and outstripping however onewants to disguise it.’ She concludes: ‘… a pleasantstress free work environment where the lion laysdown with the lambs, is unreachably utopian… theworkplace is the pagan arena where head-on crashesare the rule.’

In a similar vein, psychologist Esther Perel, suggeststhat America invented assertiveness training, with itspenchant for clarity and directness. Goals, objectives,plans, strategies, tactics and organisation skillscombined with hard work – anything is possible. It isthe foundation of American optimism.

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One leadership title that has successfully crossedcultural boundaries is Jim Collins, Good to Great. Theambiguous title translates into any culture, but everyculture has its own perception of what is ‘good’ andwhat is ‘great.’ Leaders? Employees? Companies?Profits? Reputation?

The bottom line of Jim Collins examples are – inkeeping with US corporate ideology – good profits togreat profits. A much quoted example is the PhillipMorris Corporation and their continued track-recordin market dominance and profitability. Yet some oftheir business strategies to achieve that greatness inprofitability are viewed with scepticism by the fewSwedish business commentators who care to readbetween the lines. For example, is it acceptable tomaintain profitability by targeting cigarette sales toteenagers in third world countries, when legalrestraints prevent them reaching their own teenagemarket?

Many Swedish leaders – in keeping with Swedishcultural priorities – tend to provide a softerinterpretation to good to great – seeking to transforma good company to a great company. Profitability isone measure, but so is sustainability and so iscorporate social responsibility.

In spite of the gap between ‘kick ass’ and ‘kind deeds’US and Swedish business philosophy is not so farremoved. Egalitarianism, directness and pragmatism;a belief in democracy, equality, fairness and mutual

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acceptance are considered positive values in bothcultures. The differences lie more in the way in whichthese values are expressed. In Sweden the codes ofleadership may be diffuse, but the business agenda isopen (co-operation). In the US, leadership is an openbook – who is charge, what they want, how they’ll getit, but the business agenda is hidden. It is the natureof a competitive frame of mind; the ‘poker face’, not to‘show all your cards at once’, to be ‘dealt a good hand.’Competition and rivalry does not encourage an openbusiness agenda. Which may partly account for thedevastating statistic that in 2007 US corporationsspent more money on litigation that on research anddevelopment.

In Corporate America it is the sanctity of commerceand the viability of the deal that triumphs. Hence abusiness vocabulary that minimises ambiguity andvagueness with strong words and a tough attitude.From a Swedish perspective the apparent vaguenessof Swedish consensual language provides room formanoeuvre, the possibility to wait and see, and decideupon the most pragmatic solution when one must beprovided.

These polarised views on business and leadershiprepresent more the cultural priorities of the twocountries. The aims of business are universal (profitand sustainability), and the combination ofcompetition and co-operation, the two pre-requisitesto make business happen. Even Donald Trump iscapable of kind deeds.

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A story published in a collection entitled ‘TheAmerican Dream’, illustrates this less-publicised sideof Donald Trump’s character. Trump’s limousinebroke down one night as he was coming home fromAtlantic City. An unemployed mechanic stopped byand fixed it and refused any payment. The next daythe mechanic’s wife received flowers and a certifiedletter saying their mortgage had been paid in full. Inthe long term it is better business practice to performkind deeds than kick ass.

Masculine or Feminine?

The most quoted study of cultural differences is GeertHofstede’s Cultures and Organizations - InterculturalCooperation and Its Importance for Survival.Hofstede’s original study (1981) is based on a surveyexamining values of employees in 64 countries andregions around the world. These people worked inlocal subsidiaries of IBM. For the 2005 edition thestudy included an additional 10 countries.

Hofstede writes: ‘At first sight it may seem surprisingthat employees of a multinational – a very specialkind of people – could serve in identifying differencesin national value systems. However, from one countryto another they represent almost perfectly matchedsamples; they are similar in all respects exceptnationality...’

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A statistical analysis of the answers on questionsabout the values of similar IBM employees indifferent countries revealed common problems butwith solutions differing from country to country, inthe following areas:

1. Social inequality and the relationship to authority2. The relationship between the individual and the group3. Concepts of masculinity and femininity; the socialimplications of having been born a boy or a girl4. Ways of dealing with uncertainty, relating to the control of aggression and the expression of emotions5. Attitudes to tradition-short term or long term

These findings have resulted in Hofstede’s ‘culturaldimensions’ which he suggests is ‘complimentary to amore typological approach.’

Hofstede’s Cultural Dimensions

Masculine Culture – Feminine Culture J – US – S

Short Term – Long Term Orientation V – US – S

Weak – Strong Uncertainty Avoidance US – D – S

Large – Small Power Distance Ch – US – S

Individual Culture – Collective Culture US - S - Ch

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A general overview shows that Japan is the most‘masculine’ business culture, Sweden the most‘feminine.’ Venezuela’s business culture is short term;Sweden (and other Nordic countries) long-term;‘uncertainty avoidance is ‘weak’ in Greece and theUSA, and ‘strong’ in Switzerland, Singapore and theNordic countries; power distance is ‘large’ in Chinaand France, and ‘small’ again the Nordic countries;the USA represents an ‘individualist’ culture andChina ‘collectivist.

Some of the problems with Hofstede’s study includesthe cultural context of defining terms (eg masculineand feminine can be interpreted in different ways),and also that regional diversity is generally by-passed. According to Hofstede’s study:

(1) the Nordic region has the most ‘femininised’(service/relationship-orientated) business culture(2) Represents the most forward-looking businesscultures (ie long term planning to fulfil investmentreturn in contrast to a return within the shortestpossible time (as per Venezuela)(3) Are the business cultures most likely to avoid risksby being structured and adhering to rules andregulations(4) represents business cultures where subordinateshave the easiest access to leadership, and thepossibility to affect management decisions, and(5) the business cultures which most effectivelybalance individual needs against the demands of thegroup

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In general the conclusion is that the Nordic region is:

1. most service / relationship orientated2. high ‘sustainability’3. low risk taking4. highly accessible leadership5. evenly balanced between individual desires and

collective obligations

However the diversity in leadership styles andbusiness cultures within the Nordic region is anongoing source of discussion and analyses, with anumber of mergers and co-operation strategiesundermined by differences that are not represented inthe Hofstede study. When it comes to defining termsit is the definition of masculine and feminine thathave probably created most controversy. As criticshave suggested a culture’s perception of qualities suchas masculine and feminine must affect how suchbusiness cultures are rated.

Universalist vs Particularist

One of Hofstede’s more vocal critics is culturalspecialist Fons Trompenaars (a fellow Dutchman) whoprescribes a more interactive approach to definingcultural differences. How different business culturesattempt to resolve dilemmas provides insights intocore values and cultural priorities. Trompenaarsdescribes ‘seven dimensions of culture’ based on

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attitudes to time, expression of feeling, relationship tothe environment, etc. One of the more commondilemmas in international business is the Universalist– Particularist dimension.

The Universalist culture describes a focus on rulesand regulations, honouring a written contract, ‘a dealis a deal.’ The Particularist culture emphasisesrelationships, an honour in the exchanging ofmutualities (returning favours), and the view that inany given situation there are several perspectives,which may change according to circumstances. From aParticularist perspective relation-ships evolve –circumstances change.

The cultural dilemma is evident in examples whereUniversalist cultures (USA, Canada, the Nordicregion) make business relations in more Particularistcultures of, for example, the Far East. In Chinese‘guan xi’ – knowing the right people that can performfavours on your behalf – is a required business asset.A Nordic manager might emphasise the benefits ofthe product not realising that without ‘guan xi’ suchadvantages are redundant. A Swedish managerrelated a story where he had secured a three yearexclusive contract with a Chinese business partner,yet six months later found his product superseded bya South Korean rival. ‘We had deal,’ the Swedishmanager tells the Chinese importer; ‘You signed acontract.’ ‘Yes,’ says the Chinese businessman, ‘Wedid. But that was six months ago. Things havechanged since then.’

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Cultural Discourse

Cultural discourse is the linguistic study of diversitybased on how we interpret words and phrases indifferent ways depending on our cultural background.It is also a way of looking at cultural norms based onspecific words and phrases, which can be explained,but not easily translated. For example, the Spanishword mañana is often used to stereotype a Latinmentality of avoiding work, delay decision-making, andgenerally, ‘relax and take it easy.’

At a surface level mañana translates as ‘tomorrow’ butwithin the discourse of culture and national traits itcovers a wide range of behaviour, expectations, norms,conventions, attitudes and rituals. From a Spanishpoint of view mañana implies flexibility, adapting tosituations as they arise, enjoying the moment. In abroader cultural context the mañana c o n c e p tdistinguishes the northern European synchronic approachto time (one thing at a time), from the Latin polychronicapproach (many things at once).

In Sweden, the word lagom is acknowledged asessentially Swedish (it cannot be translated into anotherlanguage), but how positive it is, is open tointerpretation. ‘Lagom och svensk’ (lagom and Swedish)implies drab, colourless and a bit boring; whereas ‘lagomär bäst’ (lagom is best) suggests a principle of moderation

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and wisdom based on defining the best possible courseof action between two extremes. Likewise Finnish sisudefines an aspect of the Finnish character – never giveup, resolve, determination and fighting spirit.Alternatively, many Finns consider sisu a culturalstereotype that focuses on stubbornness, obstinacy andnot knowing when to quit.

From a positivist perspective cultural discourse canfoster cultural understanding through analysing culturaldifferences based on language, words and phrases.Expressions that in some way represent core values ofa culture, can be explained, interpreted, discussed butnot satisfactorily translated from one language toanother. Interpretation is the key factor. The process ofinterpretation opens up a dialogue. Is mañana a goodthing, or a bad thing? Does it suggest inefficiency orhow to prioritise quality time? What does it tell usabout attitudes and values of Spanish people?

Some examples:

USA

‘The American Dream’ prioritises building personalwealth. It’s OK to be rich. This is the core of theAmerican dream. The business culture isentrepreneurial and complex, ie there is a lot ofvariety in sub-businesses – businesses that feed andsupport other businesses. ‘Business is business’ is a

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mentality, which means defining needs and providingsolutions. It is a mentality that leads to a contrast ofbehaviours – there is a personal behaviour and abusiness behaviour.

There are two sides of the American dream. Firstly,the lofty ideals of the founding fathers, when ThomasJefferson, Benjamin Franklin, John Adams andothers signed The Declaration of Independence (July4th, 1776) guaranteeing American citizens ‘life, libertyand the pursuit of happiness,’ and later ratified theAmerican Constitution (June 21st 1788) whichsanctioned the American way of life. A nation thatbegan with a dream of democracy and a new age, andpursued by American idealists throughout history;from Lincoln, to Kennedy, to Martin Luther King andBarack Obama.

Secondly, is the vision of the entrepreneur; from‘snake oil salesmen’ to Pemberton, Henry Ford, W. K.Kellog, J. P. Morgan, J. P. Getty, W. R. Hearst, J. D.Rockefeller, Frank Woolworth, Andrew Carnegie, AlCapone, Bill Gates… And the ideology of theentrepreneur laid out in American business bookclassics such as Think and Grow Rich (Napoleon Hill,1937; ‘First, fix in your mind the exact amount ofmoney you desire… it is not sufficient merely to say “Iwant plenty of money”); The Richest Man in Babylon(George Clason, 1926; ‘make thy gold multiply’); Howto Win Friends and Influence People (Dale Carnegie,1937 & 1953; ‘how to make people like you instantly.’

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China

Moderation, the middle way, according to the teachingof zhong yong, is the key to a successful life. Themiddle way lies between two extremes – in order toachieve balance, extremes should be avoided. It is amost Eastern way of perceiving one’s place in theworld, although in Western cultures, the Swedish ideaof lagom (‘just right’) comes close (see Sweden).

Zhong yong is a Confucian teaching described in TheDoctrine of the Golden Mean that dates back toaround 500 BCE. The Doctrine of the Golden Mean isone of the four Confucian classics that constitute thefoundation of a Chinese upbringing. The other threeare The Analects, The Mencius and The GreatLearning (available on the Internet Sacred TextArchive).

The basic premise of zhong yong is to maintainbalance and harmony, and to train the mind to seek astate of equilibrium.

Which brings us to mianzi, with its complexity andnuances, and multifarious levels of interpretations.Mianzi means ‘face’, or reputation, or status. For ithas little to do with honesty and incorruptibility, buta lot to do with status and perception of character.The literal translation is ‘face value’, which can meanfighting over who pays the restaurant tab, careerchoices, and which friends you make. ProfessorAmbrose King, sociology professor at Hong Kong

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University, suggests mianzi is like a credit card. Themore face you have, the more you can buy with it. Thebetter your credit, the better your social standing.Mianzi is measured in terms of social position, wealthand power.

Middle East

Insha’Allah translates as ‘In God’s hands’, or ‘if it isGod’s will’, or ‘God willing’. It is an Arabic expressionthat tells us something about core values in theMiddle East. To place oneself in the hands of Godsuggests the strong spiritual foundation of Arabicculture. In western culture insha’Allah can beregarded as a fatalistic approach to life, a view we canmistakenly perceive as resignation. Insha’Allah is anexpression found in Arabic, Persian, Turkish, Urduand Bengali, and the 14 nations that make up theArabic speaking ‘home countries’ – the Al-waton al-Araby. These are: Egypt, Saudi Arabia, Lebanon,Israel, Jordan, Syria, Yemen, Oman, United ArabEmirates, Qatar, Bahrain, Kuwait, Iran and Iraq.

In cultural terms the difference between determinismand self-determinism is quite simple: ‘we control ourown lives’ (self-determinist); ‘we cannot foresee ourown destiny.’ (determinist). Both views are valid, butthey need not be as contradictory as many culturalstudies make out. The idea that a culture is either Aor B (determinist or self-determinist; individual orcollective) is a westernised concept to begin with, anddifficult to explain to people from the Middle East. (‘If

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you want to be like this, that’s OK. If you want to belike that, that’s OK too. It is insha’Allah, in the handsof God.’)

England

Fair Play, as in the Marylebone Cricket Club’s ‘Lawsof Cricket’, the Queensberry Rules (boxing), theCambridge Rules (soccer), and the exploits of RobinHood (folk-lore).

The cultural differences between England, Scotlandand Wales are sufficient to warrant separate entries.The United Kingdom of Great Britain and NorthernIreland is something of a misnomer. It is a region thathas never been particularly united, and a regionwhere borders contain diverse cultures defined bylanguage, customs and traditions, history, nationalcostumes, food and folk heroes.

National sports make for fascinating culturalmetaphors, providing insights into core values andcodes of behaviour. A management magazine listedAmerican sports as analogies for corporate styles andteambuilding; baseball for specialists, Americanfootball for star players, and basketball for equallyskilled teamwork. In England it is cricket andAssociation Football (soccer). The Laws of Cricketwere codified in 1744, and the Cambridge Rules forAssociation Football were drawn up at CambridgeUniversity in 1848.

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To the uninitiated cricket is something of a mystery.Yet there is poetry to a sport that breaks off at 3pmfor tea and cucumber sandwiches, and where a gamecan be stretched out over three days and still end up adraw. Winning is not necessarily the primaryobjective, rather the fairness of play, both in regard togood sportsmanship (which is probably why theAustralians usually beat the English side in testcricket), and to the individual talents of the players.Still today English Members of Parliament makedecisions sometimes involving punitive actions,against those deemed ‘not playing cricket.’

Germany

Ordnung muß sein means literally ‘order must be,’ aphrase that belies a cultural leaning toward order andefficiency. Ordnung has its roots in 19th centuryPrussian military schooling that embraced disciplinein the forms of punklichheit (punctuality) andpflichtbewußtsein (duty).

At its foundation is the essence of reasonablebehaviour and consideration for other people.Pflichtbewußtsein simply means ‘duty before self-interest’, that selfishness is egoism and something tobe frowned upon; and punklichheit is both respect forother people, and efficiency, whether at the workplace or within the community.

A computer programmer working for a German ITcompany, explained ordnung as ‘orderliness must

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exist’, and made the analogy of preparing a computerprogramme. A lack of orderliness in the little detailsof preparing code, he suggested, will have largerconsequences later. But just as important, a lack ofordnung may be a sign of larger problems lurkingbeneath the surface.

Denmark

According to a Forbes business magazine survey(2006) it is Denmark and Australia that have theleast formal business cultures in the world. InAustralia, the most likely explanation is that ‘we’re allmates’, and in Denmark hygge is a contributing factor.Hygge means ‘keep it relaxed’, enjoying the companyof others, socialising in an informal and open way.

Closely related to hygge is the Danish idea offællesskab – fellowship; being part of a small close-knit group. You will find fællesskab in a Danish kro,(pub) and fællesskab in simply being Danish.Enjoying yourself with friends and family, involvesfood and drink; ingen hygge uden tygge (no cosinesswithout food and drink), and faellesskap – fellowship,a sense of belonging.

Finland

Sisu [pron. see-soo] means determination, nevergiving up, resilience, steadfastness. ‘In Finland, if wesay we will do something, we will do it,’ as one localmanager explained. Then added: ‘Imagine you are

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locked in a room. There is no way out, but you mustget out. What do you do? You walk through the wall.This is sisu.’

Finnish sisu is evident in many aspects of Finnishsociety; in business, in social life, historically. It is acountry of strange endurance contests, designed totest sisu. For example, who can carry their wife thefurthest (every year in Sonkajärvi – in 2006 anEstonian competitor won), sitting naked on top of ananthill, staying longest in a sauna, ice-swimmingcontests, who can kill the most mosquitoes with onehand while they are biting, as well as tango contests,long distance running, long distance skiing and rallydriving.

The sisu mentality extends to a sense of self-reliantstoicism; being asked or told to do something requiresno verbal confirmation or discussion, you just do it. InSweden when the boss talks to you, it is consideredsomething positive; encouraging, bonding, seekingviews and ideas, inclusion into the group, dialogue,relationship building, asking for opinions, showingsupport. In Finland if the boss talks to you, it isconsidered negative; something must be wrong,reprimands are likely, new instructions to be given,dissatisfaction expressed.

Alternatively, in Sweden, if the boss doesn’t talk toyou, this is bad. You may be being ostracised, cut off,alienated, disapproved of, excluded. Whereas in

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Finland, the boss saying nothing is good; everything isOK, all is well, you are doing a good job – no reason tointervene.

In business honesty is taken for granted. Every yearFinland is at the top, or near the top of theTransparency Agency’s ‘honesty index’. Finnishcompanies are known for long-term businessstrategies, and honesty provides a solid foundation.Next, straightforward communication. As in ‘we saywhat we mean; we mean what we say’.

In business the Finnish manager might be frustratedby what is considered ineffective business practiceelsewhere (consensus seeking in Sweden; corruptionin Russia, lack of rational thinking in the Latincountries, too much talking just about everywhere), sowhen the Finnish manager is in a position to takecommand, this can be expressed in a style Finns referto as ‘management by perkele;’ no discussions; just doit.

Sweden

Lagom [pron. lar-gom] – Swedish people pridethemselves on this uniquely Swedish word – it doesnot exist in Danish or Norwegian, neither as a wordnor as concept – according to local mythology at least(see below) – in any other language. Yet Swedes aredivided as to just how positive lagom is as an exampleof Swedish-ness – thus lagom is a suitable example of

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the double edge blade of cultural discourse. It can beused in a negative way; as in – Swedish and lagom(average, drab, a bit boring); and in a positive way; asin – lagom is best (the golden mean, just right,perfect).

According to the Swedish Academy lagom simplymeans ‘according to the law’ (lag = law) but there aremany popular stories about the ‘true’ meaning of theword. In the old days Vikings would sit around a bigtable as a lag (lag = team) and share a bowl of mead(beer). The bowl had to go around the team (om =around) in order that everyone get their fair share,hence lagom – around the team. Other versionssuggest that it was a dish of soap passed around theteam (!), or a bowl of soup (which could be attributedto misprints – in Swedish soap is såpa, and soup issoppa). In another version it is a basket of bread.Regardless, lagom as passing whatever-it-is around sothat everyone gets their fair share, explains manyattributes of contemporary Swedish society:collectivism, social welfare, thinking of the group andnot just oneself, teamwork, co-operation, consensus,avoiding extremes, avoiding confrontation, the middlepath (zhong yong in China), being considerate, beingpolite.

* [For a more complete survey of key words and phrases, seeAlexander, Lagom Sisu Manana: A Globalisation Survival Kit, 2009]

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Some of the barriers to intercultural business successinclude:

languagenon-verbal communicationstereotypesvalue judgementsstress

To overcome such barriers?

Develop language skills, understand one’s ownlanguage level (maybe a translator is necessary);learn the social codes regarding body language, socialtaboos, respect for distance between people; avoidnegative stereotypes and focus on the positive aspectsof international business; avoid hasty valuejudgements by focusing on the person, and not theircultural background; take things as they come – doingbusiness in a different culture always presentschallenges, and too much stress might indicate toohigh a level of ambition.

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Models of Leadership

Leadership styles and models

When The One-Minute Manager was published in thelate 1970s, it marked the beginning of a new approachnot just to management, but also leadership. Theauthors, Kenneth Blanchard and Spencer Johnsonoutlined a four-point model describing four styles ofleadership: Directing, Coaching, Supporting andDelegating.

Successful management, they argued, depended upontop management's ability to adapt to any givensituation. A manager is not classified as one of thesefour types, rather needs to identify four basicapproaches of leadership, and apply the mostappropriate style.

Directing leadership is dominating; the leader givesinstructions and supervises how tasks are carried out.Coaching leadership means the leader continues todirect and supervise, but explains decisions and isopen to suggestions. Supporting leadership allowsmiddle management to take initiatives in makingdecisions, and shares responsibility in decision-making processes. Delegating leadership means theleader gives responsibility for making decisions andsolving problems over to subordinates withoutinterference.

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‘A fast changing world needs all kinds of leaders’ saysKenneth Blanchard. ‘It's no longer possible to predictwhat kind of leader we need tomorrow…management will be required to adapt quickly to thedemands of employees and the rapidly changing needsand demands of the outside world.’

Corporate survival, he summarises, depends onleadership's flexibility, ability to make quickdecisions, adaptability to market requirements,particularly in quality and service, a strong financialbase and the individual employees having more say inthe running of the company.

The four leadership styles are in turn founded uponJungian typology that gave rise to the MBTI approachto personality profiling.

However, as with many leadership models, Blanchard(and his many successors) must be seen through acultural filter of American business and leadership’sself-perception as a norm. The coaching style is basedon an American conception of a coach role – ‘the guywho tells us what to do’ – in contrast to otherperceptions of the coach, as mentor with a moresupportive role.

In The Leadership Mystique, Manfred Kets de Vriessuggests three models of leadership:[pp. 215ff]

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Interactionist – leadership does not happen inisolation; it depends on the situation or thepersonality, or a combination of both – usually thecombination of both

Personalist – strong personality, the hero navigator,in control; leadership is a process

Situationalist – not the personality, but the situationthat makes leadership

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Communicating Values

“It is no longer the company with the best product that willsucceed, but the company with the best story.” Rolf Jensen, TheDream Society

Product – Story

Electrolux has both a brand manager and a companyhistorian. The role of the brand manager is tocultivate the Electrolux brand for marketing andconsumer awareness purposes. The companyhistorian maintains and preserves what theElectrolux brand has meant for consumers in thepast.

Newcomers to the company are provided with anhistorical overview, a tour of products from the past,and a few anecdotes and stories to illustrateElectrolux striving for quality. One of these storiestells of an old lady living in one of the more well-to-doquarters of Stockholm who takes her vacuum cleanerto the local appliance repair shop. ‘It needs a newhose,’ she tells the repairman. The repairman looks atthe suction hose, which has worn through, and at thevacuum cleaner, which is 40 years old. ‘I’ll see what Ican do,’ he tells the old lady and calls to the Electroluxservice department. ‘No chance’, he is told; ‘we haven’tmade suction hoses for that model in more than 20years.’ As a gesture of goodwill – and impressed thatthere is a customer with a still functioning 40 year oldvacuum cleaner - Electrolux agrees to provide the old

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lady with a new model, free of charge. ‘No,’ says theold lady, ‘this model is perfectly all right. It just needsa new suction hose.’ The old lady is adamant, and theElectrolux service department custom-makes a newsuction hose. Another satisfied customer.

6. The story has other implications – it exemplifies theElectrolux brand as representing quality, service,and product durability. It is a story thatcommunicates values. Stories communicate values,test values and help shape and define a corporateprofile and a company brand.

Inside the organisation getting the story right canlead to profound transformations. A good story can:

7. inspire change inside the company or organisation

8. initiate change that leads to a better product, visionor morale

9. change the person – a strong story can help anindividual find balance, motivation and inspiration

For example: A Brazilian client walked into theMercedes showrooms in Stuttgart. He was dressed intypical Brazilian fashion – slacks and colour printshort sleeved shirt. He stood out amongst theEuropean executives in their dark suits and ties. TheBrazilian client waited patiently, but after 30 minutesof being ignored by the apparently ‘busy’ sales staff,

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he left his business card on the desk and walked out.On the back of the card he had written a shortmessage: ‘Can be contacted at this number.’ The frontof the card listed the company, one of Brazil’s largestexporting companies, and his position, President. Thenumber he had left on the back of his card was to theBMW office in Munich.

This story circulated through the company’s Europeanoffices. Were changes made? According to an accountmanager from Chrysler-Daimler’s Denmark office,this story initiated a series of changes regarding bothpolicy and in-house training. ‘It was a matter ofchanging deep-rooted attitudes,’ he added.

Companies and organisations invest vast sums ofmoney in developing a profile, through advertising,logos, mission statements, core values andquestionnaires to gauge consumer response. What canstories provide that the traditional avenues ofprofiling and marketing cannot? Why shouldmanagers and company leaders invest in the ‘how-to’of storytelling? How feasible is storytelling as abusiness development strategy?

We all tell stories. Sure, we need information as well.About company policy, about prospects, products andservices. But information is limited. There is noinsight in information – only facts. The informationage belongs to the past – we have, in the words offuturologist Rolf Jensen, entered an age ofimagination. It is no longer the company with the best

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product that will succeed, but the company with thebest story.

What substance is there to such a claim? Let usconsider what storytelling can do for a company inpractical terms. In an age of inspiration and life-style,product alone is no longer the primary sales andmarketing criteria. How does ’product thinking’ and’story thinking’ compare?

PRODUCT STORY

information inspirationtechnology stylefacts interpretationquestionnaires ’buzz’

Stories inspire. Core values represent the corporateversion of desired perception. They are a form of one-way communication; one perspective. They describe,but they do not narrate. Masterfoods list their corevalues as:

QualityResponsibilityMutualityEfficiencyFreedom

As a set of values they could be applied to manycompanies – as is often the case with core values,there is a lack of identity and specificity.

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IKEA refer to ‘guiding principles’ as opposed to corevalues:

Products are identityIKEA spirit - a living realitySimplicity is a virtueA different wayResponsibility to the customer

There is specificity (they relate to IKEA), but alsogenerality. They are values that could apply to mostcompanies. For example, Electrolux list their valuesas:

PerformanceInnovationSuperior talent‘the Electrolux way’

To create a corporate narrative requires manyperspectives. The whole story. ’Corporate socialresponsibility ‘ Think global, act local’; core values andslogans. Abstractions and battle-cries, not a story.

Core values represent the company version. To createa story we need other perspectives:

• what do customers actually say? (rather than whatwe want them to say)

• what does the competition say? (competitorperspective is attuned to strengths and weaknesses)

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• what do people inside the company say? in sales? inresearch? in production?

• what do the financial journalists say? or the marketanalysts? Those who disregard mission statementsand corporate values, in favour of turnover figuresand market psychology?

Corporate Archetypes

How do you identify your company? If your companywas a character, what name do you give thatcharacter? How do your clients and customers identifyyour company? What character do they see; whatname would they use?

A company profile is structured on the principle of‘best of intentions’, but intentions do not make anidentity. Actions make a profile, and in the world ofdrama and narrative, the agent of action is character.It is not simply that a company has a character; acompany is a character. Dramatists traditionallydefine character through archetype. What archetypebest represents your company profile?

Margaret Mark and Carol Pearson apply archetypesto companies under the title, The Hero and theOutlaw (2001). A Hero company is one kind ofarchetype, the Outlaw another. Some of the morecommon corporate archetypes and what theyrepresent include:

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Hero CourageOutlaw RevolutionMagician ChangeCaregiver CompassionCreator InnovationExplorer Possibilities

Like character in a story, an archetype is open tointerpretation. For example:

ARCHETYPE POSITIVE NEGATIVE

Hero Courage ArroganceOutlaw Revolution DestructionMagician Transformation Manipulation

The Hero – Outlaw approach has its critics; that thisis more about stereotypes than archetypes, that it isbranding at a superficial level, and, in the words ofone critic, ‘taking the theories of Jung, JosephCampbell and their followers, to help companies sellsoap.’

Another approach is to involve people in the company,and see how they perceive their own corporateIdentity, and how they would define their owncompany archetype. Here are a few examples devisedby people within their respective companies:

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COMPANY ARCHETYPEHewlett Packard InventorE&Y Sherpa/GuideDELOITTE The ExpertSTRIX Trouble Maker

A Hewlett Packard group tested a number ofarchetypes: the rally driver (‘everything is possible’);the giant (‘slow but strong’); the enabler (combiningthe qualities of the hero and the entrepreneur); and adualistic approach with the wise man and the rebel,attempting to extract the positive attributes of both.

With a large group the idea is to get an archetype thateveryone can relate to; thus it was The Inventor,incorporating the revised HP slogan, ‘invent’. Giventhe HP state of play around 2005, a consensualarchetype must unite the new, the old, and theacquired, including Compaq, Digital and parts ofEricsson.

An archetype is a good starting point because thecompanies already have their stories; now they neednew stories. HP has a foundation story; Bill Hewlettand Dave Packard putting their first computertogether in a garage in Californian suburb. Compaqhas a foundation story too; two guys in a coffee housesketching a laptop prototype on a table napkin. Thearchetype can be the first step in creating a new meta-narrative. From the archetype, the next step is toexplore the kind of stories than can be told.

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What Kind of Stories?

“You see things as they are and ask ‘why?’ I see things as theyare not, and ask ‘why not?’ G B Shaw

Narratives include stories, fables, legends, myths,tales, anecdotes, yarns, allegories, parables,chronicles. There are narratives in literature, drama,audiovisual media, multimedia, courtroomsummaries, academic dissertations, sales pitches, self-introductions and daily conversations.

Through the ages narrative has been a fundamentalresponse to making sense of the world; storytelling isa form adapted to the complexities of human thoughtand action. Stories make sense of economics, legaldiscourse and scientific discourse, psychoanalysis andself-awareness. All embrace narrative as a means tohelp us understand each other, ourselves, and theworld around us. Storytelling is omnipresent inhuman affairs.

In the world of business, politics and decision making,the sources for stories are as rich and varied asanywhere else. Yet when we consider the specificfunction of the corporate narrative our options aremore tangible. A corporate narrative must reflect thevalues and visions of the organisation.

For the outsider the most apparent narrative iscontained in an organisations company report. Here

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the values and visions are laid out and ‘authorised’ bya Chief Executive Officer. The basis of the report isannual turnover figures. An organisation’s annualturnover provides the basis for three principlenarratives:

• What the CEO tells the Board of Directors• What the Board of Directors tells stockholders• What the Corporation tells the consumer

The company report provides a description, but adescription is not a story. And no matter how hard thecorporate storytelling team may work the story thecompany wants is not always the story the companygets. No-one has a copyright on storytelling. Acompany can invest in a multi-million mediacampaign that makes a captivating story around anew product. Maybe it will help sell the product;maybe the consumer will make up a new story, andany positive effects of the narrative approach will benegated.

The focus of corporate narrative is the ‘inside story’.Stories that can inspire change within theorganisation and the people within the organisation.

There are five basic story types that fulfil thisobjective:

The Success StoryHistory defines identity, inspires others; the ‘How WeDid It’ Story: replicate success through example

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The Foundation Story‘Why we are here’, defines values, integratesnewcomers (Corporate Soul)

The Culture Bearing StoryThe glue that holds people together through commonvalues

The Communicating StoryArouses curiosity-> communicates values -> providesopportunity for learning -> inspires change

The Vision Story‘some see things as they are; others dream of thingsyet to come…’

There is another kind of story that the media,customers and competitors are quick to exploit. Thisis ‘The False Story’ - the communication bluff; hype.On the surface ‘hype’ seems a reasonable short-termstrategy to gain focus, or profile a company, productor service. Like many short-term strategies, however,it is the kind of story that lends itself to long-termdamage, and contravenes the basic tenet of successfulleadership – integrity.

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Ethics and CSR“Greed – for want of a better word – is good. Greed is right.Greed works. Greed clarifies, cuts through, and captures theessence of the evolutionary spirit. Greed in all its forms –greed for life, for money, for love, for knowledge, has markedthe upward surge of mankind. And greed… will not only saveTeldar Paper but that other malfunctioning corporation,called the USA.” [Wall Street,1987]

Successful business is based on three factors: profit,opportunity and performance. Without profit, there isno development; opportunity means developmentthrough entrepreneurship and competition; andperformance means satisfied customers, satisfiedinvestors and continuity.

Is there any collision between the foundations ofbusiness practice and upholding of moral and ethicalvalues? If we answer to the negative why are ethicaltransgressions in intercultural business practice,more the norm than the exception? By transgressionswe are referring to business practices that companyleaders, employees and consumers would not accept intheir own culture, but accept outside their ownborders. The industrialised nations of WesternEurope, North America, Japan and Australasiaexploit low labour costs, absence of union protectionand struggling economies; the industrialising nationsof Latin America, the Far East and the India sub-continent, Eastern Europe and Africa persist with

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bribery and corruption at political and corporatelevels. All for the sake of ‘good business.’

Why are ethical and moral considerations over-shadowed by the globalisation of internationalbusiness practice? Stereotyping of culture hasresulted in certain expectations and anticipationsfrom initial exploratory business analyses, tonegotiations, to contracts and the execution of theterms agreed upon.

Corporate values, in many instances, are the tags bywhich a company proclaims some sort of ethicalintent, yet judged by the actions of the company, suchproclaimed values can be seen more as a marketingploy by which to appease investors and assureconsumers. ‘No child labour exploitation’ is more oftenthe leadership dictum that implies insure that thepublic has no knowledge of child labour exploitation.Thus ‘core values’ and mission statements are oftenperceived, whether cynically or not, by marketanalysts, consumers and employees, more asmarketing tags than corporate ideals.

The practice of ‘good business’ as morally suspectbusiness is ultimately down to individual choice, fromthe highest echelons of leadership to managers,executives, bureaucrats and workers. Individualchoice determines the practice and development ofbusiness opportunity at every level. What are thesocial and psychological forces at work that lead to athird-world government official accepting a bribe as

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‘OK’, or a US clothing company outsourcing to anAsian child-labour sweat-shop at the expense of localjobs and local community break-down, as ‘goodbusiness strategy’?

The dilemma between the business demands of ‘doingwell’ (profit), and the social responsibilities of ‘doinggood’ (CSR) is the source of the narratives on eitherside of the ethical demarcation line. These are thecautionary tales of the morally reprehensible, and thesuccess stories of corporate virtue. In other words, itis the corporate narrative that promotes a soundfooting for global corporate ethics through example;that ultimately there is profit in virtue through long-term business relations.

A 2004 survey undertaken by the Corporate SocialResponsibility Programme reveals that contributionsto public good is the most influential factor for acompany’s public perception.

Not everyone agrees. ‘The New Ethics’, argues DavidHenderson, of the Westminster Business College, ‘arebad for business.’ At the Conference on Ethics andLeadership, hosted by Stockholm University (June2004), David Henderson provided a more critical viewof the New Ethics. The New Ethics consist of fiveprinciples designed for the adoption by today’sethically committed organisation:

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Corporate Social Responsibility (CSR)People Before ProfitsCorporate CitizenshipSocial ExpectationsGlobalisation

According to David Henderson, Corporate SocialResponsibility (CSR) is a political issue, not corporate;when companies are involved with socialresponsibility for community economic well-being theresult is disaster. People Before Profits contravenesthe basic premise of the entrepreneurial enterpriseand for the company translates as ‘go broke’.Corporate Citizenship is a slogan – a ‘communicationbluff’ – with little bearing on corporate reality. SocialExpectations, he argued, were neither reasonable, norwell-informed. As for globalisation; globalisation isnot new, nor is it damaging; on the contrary,international trade is a basic component of socialdevelopment.

Is it realistic to propose a set of ethical standards thatare viable for corporate development? Are ethics areluxury for the company that can afford them, orabstract ideals devised by those far removed from theday to day running of corporate life?

David Batstone lists eight principles, designed, heargues ‘for creating and preserving integrity withoutselling out.’ (Saving the Corporate Soul, 2003)

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Eight Principles

1. Leadership = personal responsibility2. Transparency3. The company is part of the community as well as the

market4. Obligations to consumer5. Corporation is organic not mechanistic6. Environmental accountability7. Balance between responsibilities to workers, customers,

suppliers8. International trade based on cultural respect

These principles, suggests Batstone, do not put companies at acompetitive disadvantage – just the opposite; ‘principled companiesexcel financially over the long haul.’ Here’s why:

• a principled company will fortify its reputation• a principled company will be more likely to avoidcostly law suits• a principled company will manage its businessnetwork more effectively

The other advantage lies in narrative. The principledenterprise has good stories to tell, and least likely tocollapse under the dark threat of negativestorytelling; the scandal.

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Scandals

My career began in journalism; first radio, thentelevision. The first lesson for any journalist is thatnews deals with stories, not facts. Scandals make goodstories. Apart from that, what value is there inscandals?

Scandals are good. Better a society with too manyscandals than no scandals at all. The scandal is themeans by which a society defines and tests its self-imposed parameters of morality.

The media is rarely concerned with good behaviourand upholding ethics and values; it is about badbehaviour and the failure to adhere to ethics.Scandals bring these values to the surface. Corporatescandals during 2008 dealt with:

CEOs high wages and bonusesAccounting inaccuracies and allegations of fraudEnvironment and pollutionLay-offs, ‘downsizing’, closuresCorruption – pay-offs, bribesInsider speculation – selling informationCustomer abuse – overcharged, dissatisfied,manipulatedCartels – undermining competitiveness, securingprofitsChild labour, sweat-shops, minimizing margins

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As opposed to the public sector, where sex and power-abuse scandals figure, the common denominator inthe private sector is greed. Why greed? For businesspurposes greed offers a range of short term solutionsto ensure profitability, as well some ‘justificationschema’s allied to the nature of enterprise. Like these:

‘Greed is good’ - profitability is the underlyingstandard business practiceGreed is abstract – the pursuit of numbers andstaying ahead in the gameGreed is unconscious– the tacit agenda of a powereliteGreed means security – a need which is boundlessWhat is greed? It is the shifting line – how much isenough?Why not greed? – who defines the moralboundaries?

The word dilemma means ‘two horns’, and the twohorns of the dilemma of enterprise are represented byrationalist economic theory and social evolutionarytheory. It is the divide between ‘doing well’ and ‘doinggood.’

Rationalist Economic Theory Social Evolutionary Theory

self-interest social responsibilityopportunism trustworthinessegoism co-operation

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Social evolutionary theory (some key texts includeMatt Ridley, Nature via Nurture, 2002; RobertAxelrod, The Evolution of Co-operation, 1984; RobertFrank, Passions within Reason, 1988) suggests thefollowing advantages of moral behaviour:

1. Society allows for division of labour and for peopleto specialize. The sums of our specialized efforts aregreater than general efforts. Society is synergybetween specialists.

2. A harmonious society necessitates inter-connectedness. This requires us to be co-operative,social and trustworthy.

3. Being social, co-operative and trustworthy is anevolutionary advantage that ensures development forthe individual and the community.

The other aspect to corporate morality is goodadvertising – moral behaviour makes for positivestories, and positive public perception.

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References

Alexander, John, How Swedes Manage, InterMedia, 2003Alexander, John, Corporate Narrative, InterMedia, 2006Alexander, John, Consensus: The Hidden Codes of SwedishLeadership, InterMedia, 2008Batstone, David, Saving the Corporate Soul, Jossey-Bass,2003Berger (ed), Cross Cultural Team Building, McGraw Hill,1996Birkenshaw and Crainer, Leadership the Sven-GöranEriksson Way, Capstone, 2002Boje, David M., Narrative Methods for Organizational andCommunication Research, SAGE Publications, 2001.Collins, Jim, Good to Great, Random House, 2001Denning, Stephen, The Springboard : How StorytellingIgnites Action in Knowledge-Era Organizations, Butterworth-Heinneman, 2001.Gannon, Working Across Cultures, Sage, 2001Hampden-Turner, Charles and Trompenaars, Fons, BuildingCross Cultural Competencies, Wiley, 2002Hofstede, Geert, Cultures and Organisations, HarperCollins,2005Jensen, Rolf, The Dream Society, McGraw Hill, 2000Kets de Vries, Manfred, The Leadership Mystique, PrenticeHall, 2001Korten, David, When Corporations Rule the World,Kumarian, 1995Klein, Naomi No Logo, HarperCollins, 2000.Lewis, Richard, When Cultures Collide, Nicholas Brealey,1996Mark, Margaret and Carol Pearson, The Hero and theOutlaw, McGraw Hill, 2001

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Matlock, John &c, The New International Manager, SAGE,1993Nordström K, & Ridderstråle,J, Funky Business, PrenticeHall, 2000.Ohmae, Kinichi, The End of the Nation State, HarperCollins1996Samovar & Porter, Communication Between Cultures,Wadsworth, 1995Ries,A&L.The 22 Immutable Laws of Branding,HarperCollins, 1999.Schwartz,Peter, The Art of the Long View:, Doubleday, 1991.Simmons, Annette, The Story Factor, Perseus Publ, 2001.Taylor, Charles, The Ethics of Authenticity, Harvard, 1991Trompenaars, Fons, Riding the Waves of Culture, NicholasBrealey Publishing, 1996van der Heijden, Kees, Scenarios, John Wiley and Sons, 1996.Watson, In Search of Management, Thomson, 2001Wolf, Michael J. E-Factor, Penguin Books, 1999.Zander, Licence to Lead, Stockholm School of Economics,2000