NeoFocus - Adapt your strategy to the Brazilian culture
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Transcript of NeoFocus - Adapt your strategy to the Brazilian culture
ADAPT YOUR STRATEGY TO THE BRAZILIAN CULTUREJérôme Kelber
© NeoFocus Strategy Consulting – All rights reserved
DISCLAIMER
Adapt your strategy to the Brazilian culture - 20121108
This presentation was prepared exclusively for the benefit and use of its intended recipient. Under no circumstances whatsoever this document, or any part of this document, should be communicated to third parties or copied without the prior written consent of NeoFocus.
The concepts and tools presented in this presentation are derived from our expertise and are proprietary to NeoFocus. We require the recipient to commit to keep them strictly confidential. The acceptance of this presentation is an explicit commitment to maintain such level of confidentiality.
NeoFocus has not assumed any responsibility for the independent verification of any of the information set forth in this presentation. The examples and data presented in this document are from internal NeoFocus sources, public sources, interviews, or strictly illustrative. Although they have been collected with all the necessary professional care, they represent the best of our knowledge: in particular NeoFocus does not guarantee the accuracy or exhaustiveness of its estimates. Comments and preliminary views on market conditions hereafter presented or referred to in this document were performed on the basis of limited information and in specific market conditions that by nature are subject to changes. Nothing contained in this document is a promise or a representation of the future or should be relied upon as being so.
NeoFocus does not make any express or implied representation or warranty as to the accuracy or completeness of the information contained in, or for any omissions from, this presentation. By receipt of this presentation, the recipient agrees that NeoFocus shall have no liability which may be based on such information, errors therein or omissions there from.
This presentation is incomplete without reference to, and should be viewed solely in conjunction with, the oral briefing provided by NeoFocus.
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Agenda
Adapt your strategy to the Brazilian culture - 20121108
1. Introduction 4
2. Adapt communication to another culture 8
3. Understanding fundamental cultural differences 13
4. Adapt to a fast changing society 21
5. NeoFocus Strategy Consulting & the speaker 23
Introduction Communication Differences Changes
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NeoFocus
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Many European companies entering Brazil are mislead by apparent similarities resulting from strong historical links between the two regions
Adapt your strategy to the Brazilian culture - 20121108
Trading
Colonization16th century
Migration20th century
Slave trade16th century
Colonization16th century
Migration20th century
Colonization17th century
Colonization17th c..
Apparent similarities
• Language: Portuguese
• Latin culture
• Catholic country (over 85%)
• Independent since 07th September 1822
• Federal republic since 15th November 1889
Introduction Communication Differences Changes NeoFocus
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One of the keys to a successful project is the cohesion between individual stakeholders, which derives from mutual understanding, efficient communication, and construction of a durable relationship based on mutual trust
Adapt your strategy to the Brazilian culture - 20121108
Build
Leveraging points of convergence between individuals and teams while explaining and defusing points of divergence generates openness and mutual trust between individuals
Understand
In a cross-border context, understanding what drives the interlocutor and the constraints he has to deal with from a cultural and contextual point of view conditions the alignment of objectives
Communicate
Misunderstandings and ambiguities must be limited or eliminated to ensure constant and efficient transmission of instructions and feedback between individuals without losing meaning
Successful project
Source : NeoFocus analysis
Introduction Communication Differences Changes NeoFocus
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Various elements of our environment directly influence our individual or collective communication and decision-making processes
Adapt your strategy to the Brazilian culture - 20121108
Familycircle
Socialcircle
Professionalcircle
Society
Institutions
Macro-economics
Natural environment
ReligionHistory
Source : NeoFocus analysis
Introduction Communication Differences Changes NeoFocus
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© NeoFocus Strategy Consulting – All rights reserved
Agenda
Adapt your strategy to the Brazilian culture - 20121108
1. Introduction 4
2. Adapt communication to another culture 8
3. Understanding fundamental cultural differences 13
4. Adapt to a fast changing society 21
5. NeoFocus Strategy Consulting & the speaker 23
Page
Introduction Communication Differences Changes NeoFocus
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Different local cultural environments generate different thought processes, personal goals and courses of actions
Adapt your strategy to the Brazilian culture - 20121108Source : NeoFocus analysis
Success factorDetermine cultural differences and their potential impact as early as possible in a project
Communication issues Diverging solutionsDiverging decision-
making processDiverging objectives Diverging results interpretation
Introduction Communication Differences Changes NeoFocus
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Language and cultural references directly impact upstream and downstream message interpretation, resulting in possible distortion
Adapt your strategy to the Brazilian culture - 20121108
Message distortion in cross-cultural communication
Source : Nancy J. Adler, desk research, NeoFocus analysis
(Nehru, prime minister of India from 1947 to 1964)
Recipient Sender
Sent message
Perceived message
Perceived feedback
Intended message
Intended message
Sent feedback
Encoding Decoding
DecodingEncoding
« If we seek to understand a people, we must try to put ourselves, in that particular historical and cultural background »« If we wish to convince them, we must use their language, not language in the narrow sense of the word, but the language of the mind »
Introduction Communication Differences Changes NeoFocus
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To mitigate distortion, it is vital to evaluate the weight of the cultural impact on interpretation, and to qualify the nature of that impact
Adapt your strategy to the Brazilian culture - 20121108
Encoding / decoding
Quantification de l’impact ?
Qualification de l’impact ?
Source : E. Hall, NeoFocus analysis
Recipient
Sender
Intended message
Perceived message
Qualification / quantification ofdistortion ?
Success factors
• Understand one’s own culture
• Understand the recipient’s culture
• Evaluate the weight of each culture onpotential message distortion
Adapt message accordingly
Impact qualification ?
Impact quantification ?
Introduction Communication Differences Changes NeoFocus
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Latin American and Mediterranean cultures generate higher distortion in message communication than North European and Anglo-Saxon cultures
Adapt your strategy to the Brazilian culture - 20121108
High context cultures Low context cultures
Intended message
Perceived message
Intended message
Perceived message
Allegories, parables, contextual interpretations, non-verbal communication
« What you see is what you get »:Limited space to ambiguousness
and interpretation
Other common characteristics:- Closed groups (clubs, distinctions, titles, etc…)- Strong inter-personal links- Several concentrical community circles- Long to initiate, but lasting relationships- Collectivism - Flexibility - Priority to process over result
Other common characteristics: - Open groups (fast food, informal forums, etc…)- Priority to necessity over relationship- Easy to initiate, but shorter-term relationships - Individualism- Results matter more than process
Few words convey complex ideas Explicit and exhaustive formulation
Illustration: Southern Europe, Latin America, Asia, Africa, Russia Illustration: Anglo-Saxon, Scandinavian, Germanic countries
« High context » and « low context » cultures : Edward Hall, anthropologist (USA 1914-2009) Concept
Source : E. Hall, NeoFocus analysis
Mitigation
Make any “cross-culture” message as neutral, explicit, factual as possible unless the destination culture and its impact oninterpretation is deeply understood
Introduction Communication Differences Changes NeoFocus
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Agenda
Adapt your strategy to the Brazilian culture - 20121108
1. Introduction 4
2. Adapt communication to another culture 8
3. Understanding fundamental cultural differences 13
4. Adapt to a fast changing society 21
5. NeoFocus Strategy Consulting & the speaker 23
Page
Introduction Communication Differences Changes NeoFocus
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© NeoFocus Strategy Consulting – All rights reserved
Cultural differentiation can be measured according to 5 dimensions
Adapt your strategy to the Brazilian culture - 20121108
From 1967 to 1973, G. Hofstedeinterviews several thousand IBMemployees located in 70 countries.
Geert Hofstede’s work and methodology
During the following 20 years, he fine-tunes andvalidates his concept on several other large-scalepopulation samples: students, foreign office civilservants, flight attendants, etc…
Statistical and analytical data available today covers 74countries, including several Asian nations, the USAand most European countries.
Geert Hofstede’s 5 « cultural dimensions »
Powerdistance
Individualism
AssertivenessUncertaintyavoidance
Long termorientation
Culturaldifferentiation
Source : Geert Hofstede, desk research, NeoFocus analysis
Cultural dimensions: Geert Hofstede, psychologist (Netherlands, born in 1928) Concept
Introduction Communication Differences Changes NeoFocus
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20
40
60
80
100Italie
Allemagne
Brazilian and French cultures can be mapped according to Hofstede’s concept, providing visual evidence of their greatest points of convergence and / or divergence
Adapt your strategy to the Brazilian culture - 20121108
Brazil and France: some contrasts…
Source : Geert Hofstede, desk research, NeoFocus analysis
… but everything is relative...
Cultural profile mapping based on G. Hofstede’s concept
Power distance Individualism Assertiveness Uncertainty
avoidanceLong termorientation
Brazil 69 38 49 76 65
France 68 71 43 86 39
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40
60
80
100USA
China
Germany
Italy
NOTE : Long Term Orientation may not have been measured on some countries and may be approximated based on similar cultures
Introduction Communication Differences Changes NeoFocus
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DistanceHiérarchique
Individualisme
AssertivitéAversion àl'Incertitude
Orientation LongTerme
Brésil
France
Power distance
Individualism
AssertivenessUncertainty avoidance
Long term orientation
Brazil
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The relationship to hierarchy is pretty similar in France and in Brazil: hierarchical structures and organizations, and management methods should be easily transferable
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Concept
Success factors in Brazil
• Despite an often very open and friendly first contact, allow time to get acquainted and establish trust
• Pay attention to signs indicating difference of status/power (social lift / service lift)
• Identify the real decision makers, even discrete ones
Introduction Communication Differences Changes NeoFocus
Hierarchical structuresFlat Vertical
Decisional centersMultiple, substantial delegation Centralized, little delegation
Individual autonomyHigh Low
Demonstration of respectNot required Necessary
Compensation structureLow disparities High disparities
Physical demarcationNon-existent Visible
“Power Distance”: comparative positioning and characteristics
Source : Geert Hofstede, desk research, NeoFocus analysis15
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The Brazilian society experiences strong social ties between individuals, involving more collective goals and rewards than in France
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Concept
Success factors in Brazil
• In family businesses, the leader often decides based on the interests of a larger group than himself: his family, his employees, his network,…
• Note: a “yes” does not necessarily mean “yes”
• Discussing one’s private life at work: frequent in Brazil, much less so in France
Introduction Communication Differences Changes NeoFocus
RecognitionPublic recognition of achievements Individual fulfilment, material rewards
TruthLess important than harmony Paramount
PrivacyNo object Fundamental right
Decisional prioritiesGroup interest Individual interest
“Individualism”: comparative positioning and characteristics
Source : Geert Hofstede, desk research, NeoFocus analysis16
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Assertiveness in relationships between individuals is similar in France and in Brazil ; in both cases, the role of women is less differentiated vs. men than in many other countries
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Concept
Success factors in Brazil
• Historically, women have been working for a long time and in large proportions in the Brazilian society
Introduction Communication Differences Changes NeoFocus
Gender behaviourial differentiationLow High
Role assignationWeak Strong
Respect for females’ successNaturally equal to males’ Subject to discussion
KSF for female successNon specific Mimic male behaviour
CompetitivenessWeak (sympathy) Strong (combativeness)
“Assertiveness”: comparative positioning and characteristics
Source : Geert Hofstede, desk research, NeoFocus analysis17
© NeoFocus Strategy Consulting – All rights reserved
Brazilian and French cultures differ significantly in terms of risk acceptance: this difference may result in a permanent gap in transnational projects
Adapt your strategy to the Brazilian culture - 20121108
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Concept
Success factors in Brazil
• « God is Brazilian » vs. French freewill
• Brazilians are informal… butknow how to adapt (and survive crises)
• A compromise is required on the degree of formalization expected in a transnational project (hence the importance of mutual trust)
• A dual management is often the right framework to steer a project / train teams
Introduction Communication Differences Changes NeoFocus
Professional attitudeInformal Very formal
Importance given to detailsSecondary: strategy is more important Vital
Perception of differencesNecessary to evolution Destabilizing, subversive
Perception of changeUnavoidable Threatening
Perception of rules and proceduresFutile, useless Vital to safety / security
Perception of riskInherent to life Must be avoided at all costs
“Uncertainty Avoidance”: comparative positioning and characteristics
Source : Geert Hofstede, desk research, NeoFocus analysis18
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Brazilian society is still quite traditional in many ways, despite an informal appearance
Adapt your strategy to the Brazilian culture - 20121108
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Concept
Success factors in Brazil
• Some decisions may be motivated by respect for tradition rather than efficiency
• Respect is due to elders and sometimes precedes actual skills
Introduction Communication Differences Changes NeoFocus
Basis of societyIndividuals with equal rights Clan, family
CreativityFree Constrained by social rules
Parental authorityLimited Strong
Knowledge acquisitionSelf-acquisition Formal education
Respect for ageLess important than skills More important than skills
“Long Term Orientation”: comparative positioning and characteristics
NOTE : Long Term Orientation may not have been measured on some countries and may be approximated based on similar cultures
Source : Geert Hofstede, desk research, NeoFocus analysis19
© NeoFocus Strategy Consulting – All rights reserved
Agenda
Adapt your strategy to the Brazilian culture - 20121108
1. Introduction 4
2. Adapt communication to another culture 8
3. Understanding fundamental cultural differences 13
4. Adapt to a fast changing society 21
5. NeoFocus Strategy Consulting & the speaker 23
Page
Introduction Communication Differences Changes NeoFocus
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© NeoFocus Strategy Consulting – All rights reserved
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2001 2002 2003 2004 2005 2006 2007 2008 2009
Inequalities are diminishing but still structure the Brazilian society
Adapt your strategy to the Brazilian culture - 20121108
Revenue sharing trend, decrease of extreme poverty Illustration
Source : World Bank, NeoFocus analysis
Population < 2 US$ / day
% of population below poverty level
(2 US$/day)Total aggregated revenue, Bn US$
1st quintile
2nd quintile
3rd quintile
5th quintile
4th quintile
Introduction Communication Differences Changes NeoFocus
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© NeoFocus Strategy Consulting – All rights reserved
Agenda
Adapt your strategy to the Brazilian culture - 20121108
1. Introduction 4
2. Adapt communication to another culture 8
3. Understanding fundamental cultural differences 13
4. Adapt to a fast changing society 21
5. NeoFocus Strategy Consulting & the speaker 23
Page
Introduction Communication Differences Changes NeoFocus
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NeoFocus assists its clients in all aspects of their growth initiatives: we provide professional services to imagine, design, execute and protect their successful development
Our vision
Strategy
Organic growthExternal growth
Profitability growth Portfolio management
Corporate finance
M&AJoint venturesRestructuring
Specialized practices
AntitrustInnovation
Adapt your strategy to the Brazilian culture - 20121108
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NeoFocus is organized to provide professional services to support our customers’ growth initiatives
Our professional practices
Organic growth
External growth
Portfoliomanagement
Profitability expansion
Sustainable and profitable growth
Strategy practice .
• Strategic Advisory
• Strategic Consulting
• Strategic Training
Specialized practices .
• Competition law cases / antitrust
• Innovation Booster
Our customers’growth projects
Our assistanceCorporate finance
practice
• M&A
• Joint ventures
• Restructuring
Local teams Experts
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Our international network allows us to conduct worldwide projects with integrated local teams
New York
Paris
New Delhi
Tokyo
Shanghai
Chennai
ZurichVienna
Munich
São Paulo
Geneva
Our international network of local professionals
Team Language Fluency:French EnglishGerman SpanishItalian PortugueseHindi TamilMandarin JapaneseCantonese Russian
Team Business Experience:North America ChinaWestern Europe IndiaRussia South AfricaBrazil ArgentinaAustralia SE AsiaJapan
Inside accessto international markets
Adapt your strategy to the Brazilian culture - 20121108
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NeoFocus has a strong international reach that is reinforced by local market experts as well as a large network of industry experts with considerable strategy consulting experience
Our differentiation
• Sectorial expertise• Strategy and specialized practices
• Senior, highly experienced consultants• Partners are directly involved in each assignment• Local teams in each country• Over 250 customers and 850 projects over 10 years
• Structured, proven proprietary methodologies • guaranteed quality levels• can be passed on to client teams via training
• Wide networks of experts (sectorial or functional expertise)
Expertise Unbiased recommendations
• NeoFocus is an independent group, 100% owned by its founders
• We provide our services with complete objectivity, and make our recommendations with freedom and in the sole interest of our customers
• We deliver fact-based, unbiased opinions to address our customers’ issues
• We provide recommendations to the best of our professional expertise
• We develop long term, trust-based relationships with our customers
• We ensure confidentiality & discretion
Adapt your strategy to the Brazilian culture - 20121108
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Our customers’ growth initiatives benefit from NeoFocus’ assistance: results achieved are improved, and costs and risks incurred are reduced
Some benefits of NeoFocus’ assistance
• Improved transparency• Improved predictability• Proven NeoFocus
methodologies
• Better growth projects• Better execution of growth
projects• Increased understanding and
support from the organization
• Improved competitive advantage
• Better understanding of the environment
• Better risk contingency planning
• Transfer of successful ideas from other sectors
• Better allocation of existing resources
• Improved transparency
More growth
Less risks
More predictability More sustainability
Less uncertainty Less waste of resources
Adapt your strategy to the Brazilian culture - 20121108
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The speaker founded and manages the Paris office of NeoFocus
Adapt your strategy to the Brazilian culture - 20121108
Introduction Communication Differences Changes NeoFocus
Your contact
Jérôme Kelber
Managing PartnerParis / France
Jerome Kelber has over 15 years of consulting experience in Europe, the US, Brazil and North Africa. He has extensive industry knowledge in a broad range of industrial sectors, including agribusiness, mining, materials, aerospace and defense, electronics, clean techs and biotech, but also service industries, such as IT, B-to-B services, telecom, specialized retail and private equity.
Jerome Kelber has advised multiple leading European corporations on organic growth strategies, new business development, international expansion, M&A operations and post-merger integration.
Prior to setting up his own practice, Jerome Kelber was a senior project manager at Roland Berger & Partners, a global management strategy consultancy.
Prior to working in strategy consulting, Jerome Kelber acquired extensive M&A experience for over 6 years with Morgan Stanley and Calyon, mainly in cross-border M&A transactions. He also developed a strong experience in innovation and high‐tech engineering consulting, with global leader in R&D outsourcing Altran, mainly in the telecom network operators.
Jerome Kelber graduated from Ecole Centrale de Paris (Engineering and Economics) and holds a master in Economics & Finance from University of Paris I La Sorbonne.
Jerome Kelber has been a private pilot since 2001 and holds an instrument rating (IR-ME) since 2011.
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Strictly confidential
42, avenue Montaigne75008 ParisFrance
Tél: +33 (0) 1 42 27 13 00Fax: +33 (0) 1 46 39 01 82
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