Cultural clashes dividing French

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Cultural clashes dividing French, Australian officials
working on $50 billion 'attack class' submarine program
BY DEFENCE CORRESPONDENT Andrew Greene
UPDATED FRI, 26 April 2019, AT 7:34PM, ABC News
(Australian Broadcasting Corporation)
https://mobile.abc.net.au/news/2019-04-27/french-subs-culturalclashes-lunch-meeting-times-navalgroup/11049748?pfmredir=sm&fbclid=IwAR3EbhveOgTZBtVmZdc_kGG
nxeG15TdZPG86leU6tgOcUhcsvkQnClcMAYM
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Sources and further reading
• https://mobile.abc.net.au/news/2019-04-27/french-subs-culturalclashes-lunch-meeting-times-navalgroup/11049748?pfmredir=sm&fbclid=IwAR3EbhveOgTZBtVmZdc_kG
GnxeG15TdZPG86leU6tgOcUhcsvkQnClcMAYM
• https://sldinfo.com/2019/04/french-naval-group-and-the-australiansworking-the-cultural-challenges/
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France & Australia: Basic Differences (http://guide.culturecrossing.net)
LOCATION:
Oceania
LOCATION:
Europe
GOVERNMENT:
Federal Parliamentary
Democracy
GOVERNMENT:
Republic
OFFICIAL LANGUAGE:
French 100%, rapidly
declining regional dialects
and languages (Provencal,
Breton, Alsatian, Corsican,
Catalan, Basque, Flemish).
OFFICIAL LANGUAGE:
English (official), Chinese
2.1%, Italian and other
aboriginal dialects are also
spoken.
MAJOR RELIGION(S):
Catholic 26.4%, Anglican
20.5%, other Christian
20.5%, Buddhist 1.9%,
Muslim 1.5%, other 1.2%,
unspecified 12.7%, none
15.3%.
MAJOR ETHNIC GROUPS: Caucasian 92%, Asian 7%,
aboriginal and other 1%.
MAJOR RELIGION(S):
Roman Catholic 83%-88%,
Protestant 2%, Jewish 1%,
Muslim 5%-10%,
unaffiliated 4%.
MAJOR ETHNIC GROUPS: Celtic and Latin with
Teutonic, Slavic, North
African, Indochinese,
Basque minorities.
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Transparency International
• CORRUPTION PERCEPTIONS INDEX 2018: The index, which ranks
180 countries and territories by their perceived levels of public
sector corruption according to experts and businesspeople, uses
a scale of 0 to 100, where 0 is highly corrupt and 100 is very
clean. More than two-thirds of countries score below 50 on this
year’s CPI, with an average score of just 43.
• Australia: 77, France: 72
https://www.transparency.org/cpi2018
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Comparison Using Hofstede’s 6D Model of National Cultural Value Dimensions

6.

Power Distance, AU: 36, FR: 68
• Extent to which the less powerful members of
institutions and organizations expect and accept
that power is distributed unequally
• Transferred to children by parents and other
elders
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7.

Small Power
Distance Societies
Large Power
Distance Societies
In the family:
1. Children encouraged to have a will of their
own
2. Parents treated as equals
1. Children educated towards obedience to
parents
2. Parents treated as superiors
At school:
1. Student-centered education (student
initiative)
2. Learning represents impersonal “truth”
1. Teacher-centered education (order)
2. Learning represents personal
“wisdom” from teacher (expert, guru)
At work place:
1. Hierarchy means an inequality of roles,
established for convenience
2. Subordinates expect to be consulted
3. Ideal boss is resourceful democrat
1. Hierarchy means existential
inequality
2. Subordinates expect to be told
what to do
3. Ideal boss is benevolent autocrat
(good father)
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8.

Uncertainty Avoidance, AU: 51; FR: 86
• Extent to which members of a culture feel threatened by
ambiguous and unknown situations
• Not to be confused with risk avoidance: risk is to
uncertainty as fear is to anxiety. Uncertainty and
anxiety are diffuse feelings – anything may happen
• This dimension focuses on how cultures adapt to
changes and cope with uncertainty. Emphasis is on
extent to which a culture feels threatened or is anxious
about ambiguity. It is not risk avoidance but rather,
how one deals with ambiguity.
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Weak Uncertainty
Avoidance Societies
Strong Uncertainty
Avoidance Societies
In the family:
1. What is different is ridiculous or curious
2. Ease, indolence, low stress
3. Aggression and emotions not shown
1. What is different is dangerous
2. Higher anxiety and stress
3. Showing of aggression and
emotions accepted
At school:
1.
2.
3.
4.
5.
6.
Students comfortable with:
Unstructured learning situations
Vague objectives
Broad assignments
No time tables
Teachers may say “I don’t know”
1. Students comfortable with:
2. Structured learning situations
3. Precise objectives
4. Detailed assignments
5. Strict time tables
6. Teachers should have all the
answers
At work place:
1. Dislike of rules, written or unwritten
2. Less formalization and standardization
1. Emotional need for rules, written or unwritten
2. More formalization and
standardization
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Individualism vs. Collectivism: AU: 90, FR: 71
• Individualism: A society in which the ties between
individuals are loose: everyone is expected to look
after self and immediate family
• Collectivism: A society in which individuals from
birth onwards are part of strong in-groups which
last a lifetime
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Collectivist
Societies
Individualist
Societies
In the family:
1.
2.
3.
1.
2.
Education towards “we” consciousness
1. Education towards “I”
Opinions pre-determined by group
consciousness
Obligations to family or in-group:
2. Private, personal opinions
Harmony
expected
Respect
3. Obligations to self:
Shame
Self-interest
Self actualization
At school:
Guilt
Formal learning is for the young only
1. Education can be lifelong
Learn how to do
2. Learn how to learn
At work place:
1.
2.
3.
4.
Value standards different for in-group
and out-groups: particularism
Other people are seen as members of
their group
Relationship prevails over task
Moral model of employer-employee
relationship
1. Same value standards apply to
all: universalism
2. Other people seen as potential
resources
3. Task prevails over relationship
4. Calculative model of
employer-employee relationship
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12.

Masculinity vs. Femininity, AU: 61, FR: 43
• Masculinity: A society in which emotional
gender roles are distinct: men are supposed to
be assertive, tough and focused on material
success, women on the quality of life
• Femininity: A society in which emotional gender
roles overlap: both men and women are
supposed to be modest, tender, and focused on
the quality of life
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Feminine Societies
Masculine Societies
In the family:
1. Stress on relationships
2. Solidarity
3. Resolution of conflicts by compromise and
negotiation
1. Stress on achievement
2. Competition
3. Resolution of conflicts by
fighting them out
At school:
1. Average student is norm
2. System rewards student’s social adaptation
3. Student’s failure at school is relatively minor
accident
1.
2.
3.
4.
Assertiveness ridiculed
Undersell yourself
Stress on life quality
Intuition
1. Best students are norm
2. System rewards student’s academic
performance
3. Student’s failure at school
is disaster, may lead to
suicide
At work place:
1. Assertiveness appreciated
2. Oversell yourself
3. Stress on careers
4. Decisiveness
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14.

Long Term vs. Short Term Orientation, AU: 27; FR: 63
• Long Term Orientation is directed at the future and
seeks future rewards through perseverance and
thrift
• Short Term Orientation is directed at the past and
present through respect for tradition, fulfilling
social obligations and seeking immediate rewards
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Long-Term / Short-Term Orientation
High Long Term-France
emphasis on persistence
Low Long Term (i.e. Short Term)-Au
emphasis on quick results
relationships ordered by status
status not a major issue in relationships
personal adaptability important
personal steadfastness and stability
important
Face considerations common but seen as protection of one’s Face is important
a weakness
leisure time not too important
leisure time important
save, be thrifty
spend
invest in real estate
invest in mutual funds
relationships and market position
important
good or evil depends on circumstances
bottom line important
belief in absolutes about good and evil
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16.

New Dimensions: Minkov & Hofstede:
Indulgence vs. Restraint, AU: 71, FR: 48
• Integrating all presently available cross-cultural databases
accessible to him, and without an a priori commitment to
the five Hofstede dimensions, Michael Minkov defined three
new dimensions, two of which cover issues that Hofstede’s
five address only partially or not at all.
• Minkov labelled one of them Indulgence versus Restraint.
• Indulgence stands for a society which allows relatively free gratification of
some desires and feelings, especially those that have to do with leisure,
merrymaking with friends, spending, consumption and sex.
• Its opposite pole, Restraint, stands for a society which controls such
gratification, and where people feel less able to enjoy their lives.
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Minkov's Monumentalism
• Based upon the concept of societies building monuments / statues
to commemorate people and events that are considered important,
people in cultures that have high Monumentalism averages possess
and openly demonstrate pride in themselves, their achievements,
families, and other social institutions.
Scores from: Rek, M.; Makarovič, M. & Škabar, M. (2015). (Un)
certainty in the Knowledge Society. Comparative Sociology, 14 (5), 613634.
• Monumentalism: Australia: 436, France: 165
• Max: Nigeria: 908, Min: China 0
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Minkov, M. (2013). Cross-cultural Analysis: The Science and Art of Comparing the World's Modern Societies and
Their Cultures. Thousand Oaks, CA, USA, Sage Publications, p. 268.
The World Values Survey items that Minkov (2011) selected for his analysis were:
a. Percentage of respondents who mention »hard work« as an important trait for
children (item A030 in 1994-2004 and v13 in 2005-2008);
b. Percentage of respondents who mention »thrift« as an important trait for
children (item A038 in 1994-2004 and v17 in 2005-2008);
c. Percentage of respondents which state that leisure is very important to them
(item A003 in 1994-2004 and v6 in 2005-2008);
d. Percentage of respondents who mention »religious faith« as an important trait
for children (item A040 in 1994-2004 and v19 in 2005-2008);
e. Percentage of respondents who are very proud to be citizens of their country
(items G006 in 1994-2004 and v209 in 2005-2008);
f. Percentage of respondents who agree strongly that one of the main goals in their
lives is to make their parents proud (item D054 in 1994-2004 and v64 in 20052008).
• Minkov, M. (2011). Cultural Differences in a Globalized World. Bingley, UK:
Emerald.
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NEGOTIATION: http://guide.culturecrossing.net
France
• It is best to remain cool and professional; avoid any sort of confrontation
and do not resort to hard sell tactics.
• The French tend to take time when negotiating. Do not rush them or
appear impatient. Expect a great deal of time to be spent reviewing details
before a final decision is made.
• Decisions tend to be made from the top down.
Australia
• It’s best to avoid hard selling, pressure tactics and any sort of conflict or
confrontation.
• Bargaining is generally not expected and is usually frowned upon.
• It’s important to be direct about intentions and supporting them with hard
facts and figures is a good idea.
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20.

Cultural Clashes
• In 2016 former prime minister Malcolm Turnbull announced Naval Group,
then known as DCNS, had beaten rival bids from Germany and Japan to
build 12 new submarines for the Royal Australian Navy.
• The French-designed submarines would be built in the Australian manufacturing
hub of Adelaide
• The first of the conventionally powered submarines, to be known as the
"Attack Class", is scheduled to begin operational service in the mid-2030s.
• However last year the ABC revealed that Defence Minister Christopher
Pyne had grown so frustrated with the French company over its handling of
commercial negotiations, he cancelled meetings with some of its visiting
top officials.
• In December, Mr Pyne rejected another ABC report revealing that Defence
had offered a two-year extension to Naval Group as it tried to lock in the
Strategic Partnering Agreement.
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21.

Naval Group: https://en.wikipedia.org/wiki/Naval_Group
• Naval Group (formerly known as DCNS) is a French industrial group
specialised in naval defence and marine renewable energy. The group
employs next to 13,000 people in 18 countries.
• Naval Group (the original organization, French Naval Dockyards, was
established in 1631 by Cardinal Richelieu) is a private law company in
which the French government holds a 62.49% stake, Thales*35% and
company personnel a 1.64% stake, and the company itself 0.87%, is the
heir to the French naval dockyards and the Direction des Constructions et
Armes Navales (DCAN), which became the DCN (Direction des
Constructions Navales) in 1991, DCNS in 2007 and Naval Group since 2017.
* Thales Group is a French multinational company that designs and builds electrical
systems and provides services for the aerospace, defence, transportation and security
markets. Its headquarters are in La Défense (the business district of Paris), and its stock is
listed on the Euronext Paris.
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22.

TRUST: USA, France, Australia
• In the past the U.S. Department of Defense has not provided
the French navy the relatively secret computerized combat
management system developed by U.S. defense contractor
Lockheed Martin.
• However, due to the long-standing co-operative defense
relationship between the USA and Australia, Lockheed Martin
with work with the group to install the system on the RAN
submarines.
• The submarines' combat system represents about 30 percent of the
value of the contract
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Cultural Clashes—After Award of Contract
• After securing the so-called "contract of the century", the French
company chosen to build Australia's future submarines has conceded
it's having cultural clashes with its $50 billion customer, with lunch
and meeting times proving problematic.
• NG pursues a “multidomestic” approach as it seeks deals
with countries with distinct cultural difference such as Malaysia,
Brazil or India, said Arnaud Génin, strategic communications
director.
• “Multidomestic” is analogous to Perlmutter’s “Polycentric”
multinational company organization.
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24.

Categories of International Firms
• http://www.cbsnews.com/news/get-your-international-businessterms-right/
• Journal of World Business, 1969 (Perlmutter, H. V. (1969). The
tortuous evolution of the multinational corporation. Columbia Journal
of world business, 4(1), 9-18.
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Journal of World Business, 1969 (Perlmutter, H. V. (1969). The tortuous
evolution of the multinational corporation. Columbia Journal of world
business, 4(1), 9-18.
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Review of various MNC definitions
Attribute
Source
Perlmutter Management
Centocentric Geocentric Ethnocentric Polycentric
[1969]
Style
Porter
[1986]
Coordination/
Configuration
needs
Bartlett &
Ghoshal
Strategy
Bartlett &
Ghoshal
Structure
Global
Global
Centralized
Hub
Complex
Global
Multidomestic
Transnational International Multinational
Integrated Coordinated Decentralized
Network
Federation Federation
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Multidomestic Corporation Definition
• A multidomestic corporation is a multinational corporation that
operates on a localized management structure.
• Instead of centralizing and making all decisions from one primary
location, the multinational corporation decentralizes, it allows MDs,
CEOs, or their equivalents and others in the country of operation to
make the decisions.
• Because of this focus on assigning significant management and
operational powers to the countries in which they operate, this
structure is termed "multidomestic."
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Ethnocentric-Domestic
Domestic expansion only
S
H
A
Y
I don’t care Junior.
We’re staying
at home.
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Ethnocentric-International
Foreign expansion viewed as an appendage to domestic operations;
same strategies are utilized in all countries.
HQ
You see…our way
works best around
the world.
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Polycentrism
Activities and functions are planned and managed, often by local
nationals, on a country-by-country basis (e.g., HRM is decentralized
by country)
HQ
Would you look
at this? The GMs
do understand the
local markets
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Regiocentrism
Operations are geared towards a particular continental region with
similar economies and cultures
Betaminor
HQ
Alphaland
Betaland
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Geocentrism
Products are functional, reliable, and standardized low-cost
products (e.g., HRM managed on a global basis)
I can see the
whole world
from here.
HQ
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Cultural Clashes
Key points:
• The ABC has been told of numerous frustrations
between French and Australian officials working on
the contract
• One official said Australians needed to understand the
sanctity of the lunch break in France — not just a
sandwich snatched at the desk in front of the
computer screen
• The French Naval Group is developing "intercultural
courses" for French staff being posted to Australia
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Copeland, Lennie; Griggs, Lewis (1985). Going international : how to make friends and
deal effectively in the global marketplace. New York: New American Library.
• Higher-context cultures: Afghans, African, Arabic, Brazilians,
the Chinese, Filipinos, French Canadians, the French, Greeks,
Hawaiian, Hungarians, Indians, Indonesian, Italians, Irish,
Japanese, Koreans, Latin Americans, Nepali, Pakistani,
Persian, Portuguese, Russians, Southern United States, the
Spanish, Thai, Turks, Vietnamese, South Slavic, West Slavic.
• Lower-context culture: Australian, Dutch, English Canadians,
the English, Finnish, Germans, Israelis, New Zealand,
Scandinavia, Switzerland, United States.
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SLD.com, Second Line of Defense: “French Naval Group and the
Australians: Working the Cultural Challenges”, 17 April 2019
• “Not everyone thinks like the French,” said Jean-Michel Billig, NG program
director for the Attack submarine.
• Yvan Goalou, a former French Navy submarine commander and the NG
institutional relationship manager.: There is need for listening and humility, he
said. “There is search for openness and sharing.”
Australian Barbecue as Cultural Signifier
• An example of Australian culture is the barbecue, an important part of fostering
good work relations, Billig said.
• There is a reciprocal need for Australians to understand the French sanctity of the
lunch break, not just a sandwich snatched at the screen.
• Another bid by NG to boost its openness to “Anglo-Saxon culture” is publishing its
inhouse magazine in French and English, seen internally as a radical move.
• Big companies such as Airbus and Thales have long published inhouse magazines
in English and French, but an NG executive said those firms lack a 400-year
history as a state arsenal.
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The “Summer Break”
• Another need to bridge a cultural gap could be seen in the letter to staff
from CEO Hervé Guillou, who referred to initiatives to be adopted after “la
rentrée.”
• In French “la rentrée” means the return to work after the slack period of
the summer break in France; it is used by students, workers and pretty
much everyone.
• In August, major sectors of France slow down or close up shop completely.
School is out, the government is more or less closed, and many restaurants
and other businesses are closed as well.
• Therefore, many French people are on vacation for all or part of
August, which means that la rentrée, in September, is more than just
students and teachers going back to school; it’s also everyone else
returning home and going back to work, returning to normalcy.
• Australians get 20 days of annual leave a year.
• Remember, in the Southern Hemisphere (e.g., Australia) the seasons are
reversed from the Northern Hemisphere.
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37.

Monochronic & Polychronic Cultures
• Australia is classified as a Monochronic Culture; in France, Northern France
tends to be Monochronic; Southern France tends to be Polychronic.
• In the Australian-French business relationships, on the French side, there was
surprise to see an Australian insistence on punctuality, that a meeting scheduled
for an hour meant just that, not an extra 15 minutes.
• Additionally, when Australians got up after an hour and left a meeting
scheduled for one hour, whether an agreement had been reached or not, that
startled French counterparts.
• In France, there is the concept of a “diplomatic 15 minutes,” indicating that one is
not considered to be late if the tardiness is a quarter of an hour.
• On the French side, there was surprise to see an Australian insistence on
punctuality, and that a meeting scheduled for an hour meant just that, not an
extra 15 minutes.
• In France, there is the concept of a “diplomatic 15 minutes,” indicating that
one is not considered to be late if the tardiness is a quarter of an hour.
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Further information:
• Australia
https://www.businessinsider.com.au/20-things-about-australianworking-culture-that-can-surprise-foreigners-2015-3
https://www.businessinsider.com.au/the-unauthorised-rules-for-doingbusiness-in-australia-2013-10
• France
http://guide.culturecrossing.net/basics_business_student.php?id=71
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