Strategy & Leadership

Why improving cross-border communication will unlock innovation in your company

March 07, 2014

Global

March 07, 2014

Global
Victoria van Lennep

Head of Operations

Victoria is Head of Operations at Lendable, a peer-to-peer lending platform. Previously Victoria worked as a deputy editor in the EIU's Thought Leadership team. She holds a Bachelor and a Master in Economics from the Universite Libre de Bruxelles, and an MSc in Environmental Policy from the University of Oxford.

Cross-border collaboration and innovation: An interview with Michael Distefano, CMO of Korn Ferry International

Victoria van Lennep, Economist Intelligence Unit: Are companies with an international presence facing big cross-border collaboration and communication challenges?

I have been doing this job for over 13 years but I was reminded yesterday during a company meeting in Spain where over 20 countries were represented, that even though we all speak English, we all speak different English. Global communication is very hard because there is so much room for interpretation. This is why, regardless of the technology being used (phone, e-mail, letters, etc.), it is crucial to convey information in a language that you know the person on the other side is going to understand, and that may be different for someone in China, Arizona, Madrid, etc.
What can companies do to ensure good cross-border communication?

To ensure successful cross-border communication, employees should remember the following three basic rules:

1. Simplicity: make sure you keep it simple, we live in a twitter world today, if you can’t get your point across in a hundred and forty characters, don’t expect people to remember the message
2. Frequency: repeat the message often
3. Reach: use the channels that you believe people will pay attention to. Those channels may vary across regions or departments, but it is important to say it where you think people will read it or hear it.

Are there specific sectors where cross-border collaboration is more challenging than others?

Communication gets harder the more complex the message may be. Companies that deal with extremely complicated subjects such as engineering, architecture and manufacturing will encounter more difficulties but only by virtue of the fact that not only is language often open for interpretation, but so too is the complicated material being conveyed.

In light of these challenges, are companies adapting their investment in cross-border collaboration strategies? What could they be doing better? Focus on training?

Korn Ferry’s research shows that one of the best ways to improve peoples’ strategic thinking capacity is to assign them to global teams. Companies do not necessarily need to send their employees across borders, but they do need to assemble them against a common initiative. Not only has this been proven to improve strategic thinking skills, but it also provides an environment to practice mutually understood communication.

For people to become better at what they do and rise in their careers, international projects (projects bringing together employees from different areas of the world) are extremely important because they expand employees’ strategic thinking capacity by opening their minds to the way others work, communicate, and ultimately get things done. This is why we observe that the companies that have the best communications, and subsequently are developing their people the best are the ones that are cross training by building multinational teams to address business challenges from multiple cultures’ perspectives.

A striking example of a company which has a truly global environment is Nestle. It has leaders from almost every country in the world (except two I think!), which empowers global thinking, innovation and communication. Ideas bubble up both from the centre (HQ) as well as the field and move back and forth to improve the global organization.

To what extent can the multicultural nature of cross-border teams foster innovation?

It is only when you bring great minds from around the world together (e.g. Google) that truly great innovation will occur, because innovation is largely cultural. It is born from collaboration between diverse minds working on a common purpose. This is why it will always be in the best interest of all companies to create a culture of innovation by encouraging cross border collaboration, international teaming, as well as building an environment of diversity (from the perspective of diverse thought, not only diverse backgrounds).

What tools and methods do businesses have at their disposal to monitor how effective their investment in cross-border collaboration is?

The best way to monitor their investment in cross-border collaboration is to constantly seek feedback among employees. Since people are definitely more cautious when asked to give feedback face-to-face, one way to get around it would be to ask for anonymous feedback.
But more importantly, it is essential for chief executives to create a company culture that allows for honest and open communication. Otherwise, employees will just tell their bosses exactly what they want to hear and that does not help the boss or the organisation. It is easy to receive feedback, but unbridled honest feedback is a bit trickier.

This interview is part of a series managed by the Economist Intelligence Unit for HSBC Commercial Banking.

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