Idea in Brief

The Problem

Many global corporations suffer from miscommunication and misunderstandings, especially between the head office and regional units. This leads to a breakdown in trust. In trying to prevent those problems, companies often lose a key component of what makes them successful.

The Challenge

How can managers adapt individual employees and the organization as a whole to the realities of working in a global marketplace?

The Approach

Success involves the careful application of five principles:

  • Identify the dimensions of difference
  • Give everyone a voice
  • Protect your most creative units
  • Train everyone in key norms
  • Be heterogeneous everywhere

Until recently most of us worked in organizations that were largely local. We interacted with colleagues and clients who were with us and culturally like us. Fellow staff members were often in the same building and at the very least were in the same country, which meant that they had similar ways of communicating and making decisions.

A version of this article appeared in the October 2015 issue (pp.66–72) of Harvard Business Review.