| China Times UIA column 'Leadership =' | | 21-02-2011 | | “Management is climbing the ladder of success as efficiently as possible; leadership is determining if the ladder is up against the right wall.”Stephen R. Covey (1932, management guru). | As more and more Chinese companies and Chinese management are settling in the Netherlands, more and more articles appear on the differences between Chinese and Dutch leadership. Should Dutch companies embrace Chinese leadership, because the Chinese economy is so successful? Alternatively, do cultural differences block the path?
Because of continuing European unity and globalization, the Netherlands are in the middle of an international playing field. Our open society and accessible economy attract foreign investors who would like to do business with us. An increasing part of these investors is from China. Many times, it does not stop with investments, as Chinese entrepreneurs also found subsidiaries and companies in the Netherlands. Many of these companies appoint Chinese management or directors.
Dutch leaders
To compare Chinese and Dutch management styles, let me discuss first how the Dutch define good leadership. Right now, the keywords are transparency, hands on mentality and commitment. However, in my opinion, this is a phase in an evolutionary process. Before the Second World War, a leader in the Netherlands was a more of an authoritarian person, who regarded his employees as his sons and the company as his family. This hierarchy model suited the collectivistic society of that time perfectly. After the Second World War, our society became more and more individualistic and leaders had to develop accordingly.
They were less of a boss and more of a manager who was approachable, transparent and committed and who could be addressed by his first name.
The Netherlands is situated between Germany and Great Britain/the US. That is why Dutch leadership is a combination of the Anglo-Saxon and Rhineland governance style. The Anglo-Saxon model focuses on shareholder value, short-term profit and hierarchical relations. In the Rhineland model solidarity, communication and an eye for different stakeholders are key. The Dutch polder model is an adapted version of this model, in which communication, also with the unions, is the basis for conducting business. Much discussion and keeping all stakeholders satisfied often ends in compromise. The disadvantage here is that decisions take much time and lose their sharp edges. The advantages are that all involved are behind a decision and no one will obstruct the chosen policy.
Zealous
There is another important factor in the Netherlands that affects the Dutch mentality and Dutch leadership. Sociologist Max Weber establishes a connection between the rise of capitalism and Calvinism. According to Calvinism, one can serve God by working hard. Weber says Calvinistic capitalism is not as much about greed, but first and foremost rational, orderly and focused on progressing in life. As Calvinists are reliable, zealous, honest and law-abiding because of their faith, many consider them as reliable business partners.
A Dutch leader is clear-headed, thrifty, subdued and many times lacking fantasy. That is why Chinese entrepreneurs are surprised when a company serves them a ‘luxury lunch’. By this, they mean a platter with sandwiches. This is not meant as an insult, but matches the Calvinistic national character: act normal, that is crazy enough.
Chinese style
More and more, Dutch workers are employed in Chinese managed firms or have to deal with colleagues or relations form China. Chinese and European managers alike must learn more about each other’s cultures, the differences and the similarities. The Chinese style is characterised by twelve factors: authoritarian, paternalistic, relational, reflecting, quick, flexible, specialities, centralistic, focuses on keeping face, pragmatic, government oriented and less macho than we are used to in the Netherlands. A Chinese manager attaches great value to respect and prefers specialists over generalists. He is a real leader, who is not accustomed to our network organisation.
In addition, Chinese bring the basic values of Confucianism along: humanity, obedience, decency, loyalty and reciprocity. An important saying by Confucius is: "There is one word by which one can live one’s lifetime. This word is forgiveness: what you do not whish for yourself, do not whish for another.” The basic principles are not very different from the values in the Netherlands. Only the virtues obedience and loyalty are more in the background in my country because of our individualism. In recent years, decency has made a strong comeback in Europe.
Similarities
Copying Chinese leadership one on none means that the Dutch would renounce their habits and beliefs. This is not realistic. Copying an oriental leadership style in the Netherlands is the wrong way. We should look for the similarities, of which there are plenty, as we have seen earlier.
We should only focus on differences between the two cultures if we can learn from them. An open mind towards each other’s customs and habits is indispensable. In leadership, as anywhere else, it is all about balance and harmony. European managers are strong in risk management and less apt in consultation. European leaders focus on the individual, they delegate, listen to their employees and share responsibility. Sometimes this is enjoyable, and sometimes it is ineffective. On the other hand, paternalism and authoritarian behaviour would lead to conflict. However, we can learn much from the power of the Chinese visionary and guiding leadership . If the manager of the future originates from the orient, he or she is a manager with eye for the society he or she lives in.
Menno F. de la Vienne, director Utrecht Investment Agency
In my next column, I will discuss Chinese leadership in depth.
| | China Times UIA column Leadership = |
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