Same company, same processes—and still completely different
What this is about
In the late 1960s, IBM—an international company—faced a puzzling question:
Why did identical management practices work extremely well in some countries—and not at all in others?
The person who explored this question was Geert Hofstede. His insight: the organization itself was not the issue—it was the different cultural imprints of the people within it.
In an empirical study involving more than 110,000 IBM employees, Hofstede developed his model of cultural dimensions in the late 1960s using factor analysis. The study initially covered 67 countries, was later expanded to 76, and eventually (in 2010) extended to 93 countries for two additional dimensions (long-term vs. short-term orientation and indulgence vs. restraint).
The original four core dimensions were:
- Power Distance
- Individualism vs. Collectivism
- Masculinity vs. Femininity
- Uncertainty Avoidance
Hofstede later added a fifth dimension (Long-Term vs. Short-Term Orientation) and, in 2010, a sixth: Indulgence vs. Restraint.
The tool: Three cultural dimensions in practice
For everyday leadership, we focus here on three key dimensions and how they show up in practice:
1. Power Distance: low vs. high
- Low: leadership at eye level
- High: clear expectations around leadership and decision-making
Key question:
“Am I expected to facilitate—or to give clear direction?”
2. Individualism vs. Collectivism
- Individualistic: initiative, personal responsibility
- Collectivist: alignment, belonging, harmony
- Direct communication: clear, explicit, potentially confrontational
- Indirect communication: cautious, nuanced, relationship-oriented
Key questions:
- “Do I reach my team through individual aims—or through a shared sense of purpose?”
- “How explicit do I need to be—and where is restraint more effective?”
3. Long-Term vs. Short-Term Orientation
- Flexible: adaptation, relationships over time
- Strict: planning, reliability, deadlines
Key question:
“What matters more here—maintaining the relationship or sticking to the plan?”
Self-check: A quick reality test
A particularly useful tool is the international comparison based on Hofstede’s data:
Country Comparison Bar Charts – Geert Hofstede
Select:
- Your own country
- A country represented in your team or organization
Then reflect, based on the comparison:
- Where are the biggest differences?
- Where do you experience these differences in your leadership practice?
Practical insight:
The greatest irritation almost always occurs exactly where the differences are largest.
A simple everyday tool: The “2-minute culture check”
Before an important conversation or meeting, ask yourself:
- Who is in the room? (from a cultural perspective)
- Where might differences arise?
- What do I adjust specifically?
- more clarity?
- more context?
- more involvement?
What this means for you as a leader
You don’t need to become a cultural expert.
But you do need to understand why people on your team may think and act differently—even when they appear to be doing the same things.
Effective leaders in international contexts do one thing particularly well:
They consciously adapt their behavior—without losing authenticity.
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