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ITALIAN COMPANIES AND INTERNATIONALISATION

The results of our search

For companies and organisations operating internationally, business and resources management is often

particularly difficult because of the cultural context in which they move. To negotiate, cooperate and

coordinate activities in order to complete complex projects highlight very different aspects, from country to

country, in the ways we communicate, organise work, motivate and lead groups of employees. Since these

differences may arise, so too can unforeseen conflicts and deep misunderstandings that jeopardise the

success of programmes started with excellent technical, financial and growth potential.

When we operate in our global village, in which the speed of travel and communication shortens distances

and throws us in totally different countries, we often lose the perception of the actual geographical and

cultural distance between countries: hence culture shock becomes a syndrome affecting many expatriates.

Today, companies and organisations increasingly need a "compass" that allows them to navigate, and often

extricate themselves from, the many cultural differences found in this great little village that our world has

become. But how can we address this problem?

Itim (Institute for Training in Intercultural Management) recently conducted an international study to

examine the subject and measure companies’ propensity to specifically prepare their staff for the

international context. In Italy, the research was conducted in collaboration between itim Italy and

Manageritalia, involving a sample of nearly 200 managers.

The results of this brief survey are summarised below. According to 45% of the respondents, their employees involved in intercultural activities receive specific

training. This is especially true when the relationship between the headquarters and branch offices is very

close. In 52% of the cases, investments in intercultural training are decided by the headquarters; in other

cases, decisions are taken at the local level. From a quantitative point of view, the investment budget is

quite low: only 10% of the responses exceed 1000€ per employee per year, approximately one-third is

between 100 and 1000€, and for another third there’s no investment done on the acquisition of skills

necessary to manage multicultural situations. The latter data are rather disquieting, since they indicate a

tendency to underestimate the risks that a lack of cultural competence can lead to, jeopardising business

goals pursued at the international level.

An interesting point concerns the comparison between local staff and expatriates sickness leaves - there’s no

difference between the two groups (84% of responses). This partly differs from what research generally

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points out: the discomfort of expatriates not adequately prepared to deal with the host culture often causes

an increase in bad health, especially with respect to psychosomatic issues.

About 70% of respondents believe that knowledge of the organisational culture, preparation of people

working at international level and the integration of foreign employees are important or very important.

Also, it is interesting to focus on who connected to the expatriates is involved in intercultural training: in 42%

of cases the training is delivered only to the expats, in 4% of cases is also delivered to their family and, in

one-third of cases, colleagues of supporting organisational units are also trained.

In this regard, itim Italy’s experience, after twenty years of consulting Italian and foreign companies, would

suggest extending the preparation to expatriates families, because a frequent cause for assignment failures

is linked to culture shock suffered by partners and children going abroad without any prior preparation. It’s

also very important for HQ personnel to be aware of and understand the different practices and traditions of

the country where their expatriate colleague works, otherwise the assignee may feel frustrated and on his

own, dealing with problems on two fronts, one abroad and one at home.

Overall, the research data are encouraging and show a growing focus of companies on finding ways to

remove cultural obstacles and barriers. For the majority of respondents, in fact, the acquisition of specific

cultural competencies is important or even very important.

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The first answer to the open question, on which challenges await companies today, stresses the need to

acquire foreign language skills. This confirms, unfortunately, one of the most common lacks in our country.

The next solution shows the need to also offer managers of peripheral branches the opportunity of

international careers, and to increase the cross-border exchange of qualified personnel, ensuring their

integration.

A particular challenge, humorously written by one interviewee, consists of convincing Italians not to insist on

enjoying, when abroad, all the festivities planned by our national calendar. Curiously, one of cases used by

itim for its training on intercultural negotiation is devoted to how to reconcile, between various cultures, the

many different national holidays. This exercise is always a good starting point to realise how difficult it is in

practice to reach a solution acceptable in all cultures involved!

The majority of respondents stressed the need to acquire sensitivity and intercultural skills that enable in-

depth understanding of other cultures and to gain effectiveness in 360° relations, using communication

processes and management techniques consistent with different contexts. In other words, intercultural

issues should become a basic part of training and development programmes designed for the corporate

staff, especially today when the chance of an international career is a strong motivational lever to attract

and retain young talent.

Effective intercultural training can’t simply be based on knowledge of business etiquette and do’s and

don’ts, which is easily found on the internet, but it must go much further, offering a wide and varied range of

pragmatic tools for people operating in multicultural contexts. To design and fund training programmes of

this type, a long-term corporate vision is required, acknowledging the close connection between managers’

cultural competence and the achievement of corporate objectives. Thus the wish expressed by one of the

respondents could become feasible: ensure that cultural differences become an added value, not an obstacle

to the growth of Italian companies.

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