Perhaps you’ve heard that the Chevy Nova once lacked sales in Latin America companies because the automobile’s name translates to “doesn’t go” in Spanish?  Although that story isn’t really true – it’s an iconic example of the perils of remaining ignorant of cultural sensitivities when doing business across borders. 

When companies face more serious cross-border crises, there’s usually a lot more than lost sales on the line.  Thus, I remain amazed at how many multinational businesses do not incorporate “cultural risk management” into their ongoing issues and crisis management programs. 

Understanding and addressing cultural risk is the realm of Hilka Klinkenberg, who is one of the senior members of the Global Coaching & Consulting Group.   

 Hilka and I connected back in 1994 when we explored whether she can lead a workshop at one of the Ketchum global director meetings.  Over the years, we’ve shared thoughts on client crisis situations that involve many a cultural faux pas.  We recently re-connected and Hilka has graciously agreed to address these Three Tough Q’s:

Q1:  Do multinational organizations need to “press their hands against the hot stove” before taking cultural risk management seriously?

No.  However, that seems to be the preferred modus operandi.  Cultural risk avoidance should be incorporated into the enterprise risk management of any large or small organization doing business outside its national boundaries.

Cultural risk arises when individuals or organizations are unaware of the basic values intrinsic in other cultures.  Consequences range from mild insults that can affect the tenor of a relationship – to possible imprisonment and huge financial losses.  Cultural crises can affect a global company’s product development and production, legal and political issues, human resources and relocation, marketing and advertising.  And, in today’s virtual world, any flashpoint can go viral in an instant. Continue reading Three Tough Q’s: Hilka Klinkenberg →