How to build an effective international company culture

Building a strong company culture is challenging for any HR team, but it becomes even more complex
when your organisation is dispersed around the world. Here are some considerations and steps to take
when building your own company’s international culture.

1. Define your values

Start by defining the core values for your employees to follow that align with the company's mission and
vision. These values should be adaptable to different cultures but should have a strong foundation to
guide workers in the right direction.

2. Foster inclusion and diversity

Great organisations make diversity and inclusion a priority in every area of their operations. Encourage
employees from various cultural backgrounds to share their perspectives, ideas, and experiences.
Include cultural sensitivity training for all employees, so teams can feel comfortable exchanging ideas
and backgrounds together. These contrasting ideas can be a great catalyst for growth and creativity – it’s
important that everyone feels comfortable sharing.

3. Localise cultural initiatives and events

While you may look forward to Halloween and Christmas parties every year, other countries and
cultures may mark and celebrate in each season differently. Take the time to localise your cultural
initiatives and events to cater to the unique needs of employees in different regions. Consider adapting
your policies to respect and embrace local customs and norms, rather than shying away from them.

4. Utilise cross-cultural training and support

Set the example and provide comprehensive cross-cultural training programs for employees who
regularly engage in international projects. These training sessions should offer guidance on cultural
etiquette, communication norms, and business practices in relevant specific countries or regions. This
will enhance relationships and minimise potential misunderstandings between team members.

5. Position leadership as culture ambassadors

Your organisation’s leaders play a vital role in setting the tone for your international company culture.
They should exemplify your organisation’s cultural values, demonstrate inclusivity, and communicate
effectively across cultural boundaries. Feedback is an important part of setting an example as a leader.
Ensure your senior management team actively and regularly seeks feedback and addresses any cultural
challenges that arise.
Cultivating a strong international company culture is essential for global businesses to thrive. By
recognising the importance of culture in international business and proactively addressing cross-cultural
challenges, organisations can boost their adaptability and enjoy a more creative workforce.

With Allianz Partners, we know the importance of looking after your business’s international employees.
Whether you employ teams on short-term assignments, or you need to look after a large international
department, there’s a plan to help your employees feel safe and secure. Explore our range of
international healthcare options and see which one is best for you.

Operating internationally requires companies to navigate a complex tapestry of cultural nuances that
can significantly impact their success. To foster positive relationships, maximize efficiency, and avoid
costly missteps, companies must prioritize cultural sensitivity and adapt their practices to local contexts.
Here's a summary of cultural guidance for companies operating internationally:

1. Recognizing the Importance of Culture

Culture permeates every aspect of business, from communication styles and negotiation tactics to
workplace etiquette and decision-making processes. Ignoring cultural differences can lead to
misunderstandings, strained relationships, and ultimately, business failure.

2. Understanding Cultural Nuances

Companies must go beyond surface-level observations and delve into the underlying values, beliefs, and
customs that shape consumer behavior and business practices in each target market. This includes
understanding:

- Communication Styles: Direct vs. indirect communication, non-verbal cues, and the level of formality
in communication.

- Negotiation Tactics: Different cultures approach negotiations with varying levels of directness,
competition, and emphasis on relationship-building.

- Leadership Styles: Hierarchical vs. flat organizational structures, and expectations around authority
and decision-making.

- Workplace Etiquette: Punctuality, dress codes, greetings, and the use of personal space.

- Work Ethic: Attitudes towards work-life balance, working hours, and overtime.

- Conflict Resolution: Direct vs. indirect approaches to resolving conflicts, and the importance of saving
face.
- Local Values and Customs: Religious practices, holiday observances, dietary restrictions, and social
norms.

3. Building Cultural Intelligence

Companies should invest in developing cultural intelligence within their workforce through:

- Cultural Awareness Training: Provide training that goes beyond stereotypes and explores the nuances
of different cultures.

- Cross-Cultural Communication Skills Development: Enhance language proficiency and non-verbal

- Nurturing Local Relationships: Build genuine connections with local partners, clients, and stakeholders
by participating in local customs and traditions.

- Assembling Diverse Teams: Create teams representing a variety of cultural backgrounds to foster an
inclusive environment.

4. Adapting Business Practices

Companies must tailor their business practices to align with local cultural expectations, including:

- Marketing Strategies: Localize marketing materials to resonate with target audiences and avoid
cultural faux pas.

- HR Policies: Adjust recruitment practices, performance evaluation methods, and benefits packages to
meet local norms.

Negotiation App-roaches: Adapt negotiation styles to the specific cultural context.

- Product Development: Consider local preferences and needs when developing products or services.

5. Seeking Local Expertise

Engage local experts, consultants, and advisors who can provide invaluable insights into the cultural and
business landscape of each target market. Their knowledge can help navigate complex cultural nuances
and avoid costly missteps.

6. Embracing Adaptability

Companies must be willing to adjust their strategies, processes, and communications to accommodate
cultural sensitivities and preferences. This flexibility is essential for long-term success in international
markets.

By prioritizing cultural sensitivity, embracing diversity, and adapting to local contexts, companies can
build strong relationships, foster trust, and achieve sustainable growth in international markets.
Going global means understanding that cultures shape everything – how people communicate, make
decisions, and even see the world. This means companies need to be culturally aware and adapt to
succeed.

1. More Than Just Language:

It's not just about translating marketing materials. It's about understanding:

2. Building Cultural Intelligence:

- Training: Help employees understand cultural differences and how to interact respectfully.

- Diverse Teams: Having people from various backgrounds brings different perspectives and insights.

- Local Expertise: Partner with people who understand the local culture and can guide you.

3. Adapting Your Business:

- Marketing: Tailor your messages to local values and preferences.

- Products/Services: Consider what people need and want in that market.

-HR: Make sure your policies are appropriate for the local culture.

4. Be Flexible:

Don't assume your way of doing things is the only way. Be open to adapting and learning from local
practices.

5. Be Respectful:

Show genuine interest in understanding other cultures and avoid making assumptions.

By being culturally aware, companies can build trust, avoid misunderstandings, and create lasting
relationships, which is key to success in the global marketplace.