Leadership in a multicultural environment
Text: Pertti Suvanto, Pictures: EPK
Sari Baldauf, the former General Manager of Nokia Networks, says that in a global company, our genuine personality forms a major part of our leadership resources. Cultural barriers are easiest to cross when you are being yourself. "Behind all this there is a very simple thing usually called empathy. People are willing to help if they see that you are really trying, even if you clearly are like Alice in Wonderland."
"There was always a challenge going on in some part of the world or another," says Sari Baldauf of her years at Nokia. The economy was weaker in some countries than in others, and sometimes it was necessary to step back from the wider economical trends. At Nokia, Baldauf got used to constant rush. Work was hectic almost all the time, she says. Even the large cycles of global development could remain hidden behind the smoke curtain from Nokia's own operative fires.
The former manager of Nokia Networks has decades of experience from global business. Baldauf, who was nominated the most influential female manager in Europe, began working for Nokia in 1983, became a member of the board in 1994 and then the manager of network operations in 1998. Her name was frequently seen at the top of female managers lists in the Wall Street Journal and Financial Times.
While Asia grabbed the phone at seven o'clock in the morning headquarters time, the US phoned at ten in the evening. On Sunday night on the plane, next week's schedule could still look fairly neat, but by Tuesday morning the whole week had to be rearranged due to some incident or another.
Baldauf says that the schedules and work at the headquarters were organised according to the requirements of the big picture. In the various geographical divisions, the rush is a result of local customership and sales work. The divisions are also the channel through which the customers' voice is carried to the headquarters. There was a recurring joke at Nokia that happiness increases as a function of the distance to the headquarters. "Staying in touch with operations is a continuous challenge. Even in the headquarters you must always stay in touch with what is going on in the field."
The directness of Finns is constructive
According to Baldauf, the differences in the ways of communication between cultures bring extra spice to the work. Cultural differences must be accepted, and you must have the courage to face them. There are differences already between the United States and Europe.
"Finns believe that others need not be told exactly what their mandate is and what they must do. Stating the objective is enough. People are capable of checking the status of things around them even if they don't receive an exact definition of everyone's tasks."
"The American working culture is more hierarchical with its lines of command. The headquarters sets the objectives and the focus is on reaching those objectives; two-way communication is not very frequent."
"You must be aware of cultural differences, or misconceptions may arise. The person you talk to may hear something completely different than you believe you are saying. In a fast-paced world, you must be able to see things before their effects show on figures. The figures tell about what's already in the past, and you only hear explanations of why this happened."
"When dealing with Americans, you must learn to filter out the superlatives. When a generally analytically argumentative person sugars things up elegantly, you may at first miss the fact that everything is not in order. On the other hand, there is a lesson to be learned from this cultural characteristic: a word of thanks encourages and energises people; smoothly running work must be noticed as well!"
Baldauf says that we Finns have a habit of looking things in the eye, grabbing the bull by the horns and starting wrestling. This may intimidate someone who comes from a more sensitive environment such as the Asian cultures. "He may think that these people will surely soon grow horns on their heads and he will be thrown out at the tip of a coal rake."
"The directness of Finns is actually a constructive resource. In a new environment we must just communicate that this is the way in which we operate. We are also able to encourage, give praise and support our troops. Not with soft superlatives, but in a genuine and true manner. This is valued very highly. A lot of excess baggage can be got rid of when no time needs to be wasted on figure skating."
"It is important to tell others that they can tell you things openly, and to encourage them to ask if any of your comments puzzle them. In this way, you can create a relationship of trust with the representatives of any culture."
The force of authenticity
Baldauf continues with an example from Japan. When the standard race was at its hottest, a comment slipped into the media which hurt a customer's feelings.
"When I discussed the issue with a local employee, his advice was simple. Sari-san, you must apologise. I booked a meeting with the CEO and got on the plane. We didn't lose trust but most likely strengthened it. In Asian cultures, the management takes responsibility and apologises, often in public.
One of the central characteristics of Finns is a healthy humility in their attitude toward the world around them. It is an asset, when the world changes rapidly.
"We were often asked how it is possible that a tiny country next to the North Pole can create such global business. One reason is certainly the ability to function as people among people. When coming from such a small country, we couldn't adopt the attitude of bullies and know-it-alls."
"There has been a lot of talk about the poor self-esteem of Finns, but part of it has surely been just the healthy humility of the seeming underdog. When launching to the global level from a slightly upwards sloping direction, we have been better prepared to accept things as they are and to adjust. It may never have been poor self-esteem. There is a lot of positive desire to learn, curiosity and openness on the other side of the coin."
"I believe in the power of authenticity more than in any isms. If you don't use your own personality, a major part of your energy remains unused and is spent on trying to keep up the learned behaviour. Cultural barriers are easiest to cross when you are being yourself. Of course, there is also a lot to learn about cultures, and many things that you must be aware of."
According to Baldauf, not even Nokia were able to just stride along in their own big boots; they also needed to know how to step into other people's shoes. She believes that people everywhere value a genuine interest in their problems.
"Behind all this there is a very simple thing usually called empathy. People are willing to help if they see that you are really trying, even if you clearly are like Alice in Wonderland."
Corporate culture as the glue
Baldauf reminds us that in addition to knowledge and skills, our self-knowledge, self-esteem, beliefs and values form an important part of our resources. The real-time vortex of everyday work in a global environment is tied from every direction by constant changes and interdependencies. The company is bombarded with the contradicting expectations of customers, shareholders, employees and societies. Common factors must be found in the company's own values and culture which are realised in everyday work. In multicultural companies, the company's internal culture is the glue that keeps people together. The significance of this glue only increases with the growing international operations.
"It may be necessary to localise management practices, but not the values. At Nokia, the values are also major bait for international personnel to begin working for us."
"Even though the values can be written and practical examples can be given of them, they do not function as mere documentation. They must be a part of a dynamic leadership and the everyday operations. They are tested daily in various decision-making situations. Values also help to prioritise and automatically exclude some options.
"The management must believe in the values with all their heart. If this is not the case, the values mean nothing. If respect for individuals is an established value, any issue relating to an individual cannot be just wiped off the desk. Values may tear your schedules apart. Values must show in practice. If someone acts against the values, you must not close your eyes to it. If you don't keep your line, you can't assume that people around you will. There must be enough dialogue to reach an understanding on the values."
Courage to be yourself
A good leader listens, concludes and takes things forward in a consistent manner, all the time making sure that his subordinates see that their work has a meaning and thus making them do their best. Baldauf doesn't believe that there is any glamour in being a strategic manager, compared to the managers who need to get their hands dirty.
"Often a good strategic manger is not the best person to implement the strategy. To be able to understand what is really happening, you must spend time in the field and get a touch for the market, the customers and your own employees.
Baldauf says that, for example, the development discussions have been very educational for her. They teach a lot about the challenges of business, but also about leadership and organisational development. A development discussion is always a two-way process. The manager also gets a lot to think about, as both parties must stick their necks out. You can't hide behind your pinstripes. Baldauf admits that a few times tissues have been needed both for her and the employee in the development discussion.
"Self-management probably means that you keep your facts up to date and keep track of what happens in the world. You also have a conception of things based on your experience. You need to be able to combine these two in order to be able to make smart decisions. Behind all this there is a value system and knowledge of how you normally react to things. What is the purpose of your life and what is really important to you? These things may change when you enter a new phase in life."
"Self-management is the courage to be yourself, but also the understanding of the background of your own values and choices. The important thing is to do your thing, the things that are meaningful and interesting to you."
The ears of Minnie Mouse – a warning signal
Baldauf reminds us that our own attitudes have an effect on how things seem to us and what we will give importance to. An intuition relating to our own value system is involved in this process. We must be honest about it to ourselves and also bring it out with other people.
"Another factor is pure emotions. They can be simply a result of too much rush and too many worries in your head. When I was in a really bad mood, I put on a warning signal: the Minnie Mouse ears that my sons brought me from Disneyland. I couldn't help laughing when wearing those ears. And when I entered the meeting room, others laughed too."
"I don't buy the idea that women are more emotional as leaders than men. But I admit that everyone has feelings and they show when processing things. Managers do, however, have the obligation of controlling their emotions to some extent. You can't come to work to throw a tantrum or behave inappropriately. You must also take the responsibility for your own ability to evaluate situations and make decisions. If you are exhausted or unable to concentrate because of personal worries, you must have the guts to say that you won't be able to reach a decision on that day.
Two needs – to be useful and respected
Currently Baldauf is the only non-American in the Hewlett-Packard Board of Directors. She also serves in the boards of Sanoma-WSOY, F-Secure Corporation and YIT Corporation. In addition, she is the chairman of the Savonlinna Opera Festival Board of Directors. Organisations have gained much benefit from her expertise. Her fishing nets are spread all around the world. It is rewarding to examine them for valuable catches.
When you give up something, you make room for something new. Already in 1995, Baldauf surprised everyone and took a six-month sabbatical after a hectic mobile phone business expansion phase. She surrounded herself with books and studied European history, among other things.
Her hobbies paint a versatile portrait of her: classical music, the Italian language, Asian cultures, alpine skiing, tennis and international youth work.
"From an early age, I was given the chance of doing many different things. When I had an idea, nobody told me it was stupid. Sometimes they told me that an idea may be hard to make happen, but I could try anyway."
"Professionally, everyone has two basic needs: to be useful and to be appreciated. If you get the opportunity to be useful and gain appreciation when you are young, it has a big impact on your future. Young people should be put in influential positions at a relatively early age. When you have no experience to lean on, you look at things from different perspectives. Young people shouldn't be forced into a framework. They should be supported and their ideas should be allowed to flow freely."