Enhancing global effectiveness in international business with cultural clustering: 7 Mental Images of Culture

Global business is a terrain marked by cultural complexities, aptly summed up by the eminent cultural anthropologist Geert Hofstede: 'Cultural differences are a nuisance at best and often a disaster.' In this intricate landscape, possessing cultural intelligence isn't just beneficial; it's essential.

Adapting to local cultures and understanding cultural variances is undoubtedly advantageous for business growth. However, in the reality of truly global operations, where your interactions might span across a hundred different cultures daily, it becomes a heavy task to individually analyze the cultural influences impacting various facets of business, including strategy, human resources, customer engagement, and marketing.

To simplify this complexity and objectively assess the influence of national cultures in diverse business environments, I present the innovative cultural model by Huib Wursten: ‘The 7 Mental Images of National Cultures.’ Rooted in the foundational Hofstede 6D model, Wursten's approach offers an evidence-based framework for examining the cultural distinctions of approximately 200 global cultures by effectively clustering them.

This blog post aims to dissect the 7 Mental Images model, illustrating how it simplifies and pragmatically captures the essence of cultural values. We will explore how cultural clustering not only aids in resolving cultural dilemmas but also propels businesses towards enhanced outcomes in various practical contexts worldwide.

Our discussion is structured into two main sections:

• The 7 Mental Images Model: This part will delve into the model's specifics and provide an overview of each cultural cluster.
• Application in International Business: Here, we will discuss the practical implementation of the model, highlighting its utility in deriving actionable insights and tangible business outcomes.

Let's embark on this journey with a closer look at the 7 Mental Images model.

The 7 Mental Images model and the different mindsets (clusters)

Huib Wursten's expertise as a Dutch management consultant, with his rich experience of working across 85 countries with Fortune 1000 and private companies, forms the cornerstone of his renowned cultural insights. Recognized for making international strategies workable in practice, he has contributed significantly to the field of cross-cultural management.

In his decades of aiding multinational clients with cross-cultural challenges, Wursten noted shortcomings in the practical utilization of the Hofstede 6D-model. This realization spurred him to combine its dimensions while interacting with diverse talent groups worldwide and during his extensive workshops and seminars with the International Monetary Fund (IMF) in Washington.

My acquaintance with Huib began at Hofstede Insights (now the Culture Factor Group), where we were both Associates. He shared his experiences with complex multicultural organizations like the IMF, The World Bank, IBM, and JP Morgan Chase, highlighting that a singular focus on each of Hofstede's dimensions fell short in addressing real-world complexities. This observation led to the development of a more integrated approach.

Huib often encountered professionals overwhelmed: "Am I supposed to memorise the scores on the five dimensions [the Hofstede 6D model consisted of 5 dimensions those days] of all the countries? This is over 400 different bits of information…" 

To address this, he aimed for a simpler and more efficient model, combining the first four dimensions of the Hofstede 6D model. This endeavor led to the creation of the first five Mental Images, or cultural clusters and mindsets, which were later recognized by Neyenrode University in 1998 for its cultural-economic impact.

In consultation with Geert Hofstede, the complete 7 Mental Images model was developed. Huib, the intellectual creator of these 'mental images', describes them as unconscious, value-based rules governing societal interactions and decision-making.

The model identifies six cultural clusters reflecting societal and organizational thinking. The 7th Mental Image, representing Japan, stands distinct due to its unique cultural attributes.

The model's utility is in its simplification of complex cultural backgrounds, enabling a grasp of similarities and key differences without delving into each dimension for every country. It also explains two aspects influencing international business: the individual behavioral and thinking patterns within a cultural context, and the professional 'game rules', shaped by these mental images.

The 7 Mental Images, or mindsets, are as follows:

• Contest ('winner takes all'): Competitive cultures with low Power Distance, high Individualism, high Masculinity, and weak Uncertainty Avoidance. Examples: Australia, New Zealand, UK, US.
• Network ('consensus'): Highly Individualistic and feminine cultures with low Power Distance, involving inclusive decision-making. Examples: Scandinavia, the Netherlands.
• ‘Well-Oiled Machine ('order'): Individualistic societies with low Power Distance and strong Uncertainty Avoidance, emphasizing balanced procedures without hierarchical dominance. Examples: Austria, Germany, Czech Republic, Hungary, German-speaking Switzerland.
• Solar System ('hierarchy and standardized job descriptions'): Hierarchical but Individualistic societies. Examples: Belgium, France, Northern Italy, Spain, Poland, French-speaking Switzerland.
• Pyramid ('loyalty, hierarchy and implicit order'): Collectivist cultures with large Power Distance and strong Uncertainty Avoidance. Examples: Brazil, Colombia, Greece, Portugal, Arabian countries, Russia, Taiwan, South Korea, Thailand.
• Family ('loyalty and hierarchy'): Collectivist cultures with large Power Distance, characterized by strong in-groups and paternalistic leadership. Examples: China, Hong Kong, India, Indonesia, Malaysia, Philippines, Singapore.
• Japan ('dynamic equilibrium'): Unique for its mid-Power Distance, mid-Individualism, strong Uncertainty Avoidance, and high Masculinity.

The model has evolved over time. For instance, France and Northern Italy were initially part of the Pyramid cluster but later reclassified due to their individualistic tendencies, forming the new Solar System cluster. This change underscores a fundamental aspect of cultural dynamics: while cultures can and do change, such evolution tends to occur gradually. As societies adapt and transform, influenced by various internal and external factors, the progression of these cultural shifts will continue to shape and redefine our understanding of global diversity.

Japan, with its distinct cultural blend of being at the same time collectivistic and not that collectivistic and hierarchical, yet not that hierarchical, forms its own category, representing a pragmatic approach to understanding its unique cultural dynamics.

In essence, the 7 MI model simplifies the cultural understanding, making it more accessible and practical for businesses seeking to bridge cultural differences and find solutions to cultural issues.

Enhancing international business with cultural clustering: What are companies using the 7 MI model for? 

In the quest for global business efficiency and adaptation, it’s crucial to avoid the misconception that management practices with roots in one culture are universally applicable. Huib Wursten underscores this, noting that while people may adapt to new management rituals to align with expectations, such adaptations might not resonate with their intrinsic motivations and values, they do not feel right.

So, how do businesses effectively leverage the 7 Mental Images (MI) model in practice? It's important to recognize the model's practical validation. Post-development, Huib rigorously tested it with long-term clients, including IMF, IBM worldwide, Vodafone, 3M, ABN Amro-Bank, and JP Morgan Chase, among others.

The application of the 7 MI model extends beyond management and business strategy, permeating various situational contexts. To illustrate, let’s examine Huib’s insights on the characteristics of effective leadership within the Contest and Network clusters:

The effectiveness of management, stakeholder engagement, and employee collaboration hinges on a shared understanding of what constitutes good leadership. Disparities in these perceptions, influenced by cultural backgrounds, can lead to misinterpretations and unexpected outcomes.

The 7 Mental Images model is pivotal in navigating these cultural nuances across various global business practices. Its utility extends to numerous aspects including:

• Management and Leadership: Tailoring leadership styles to align with cultural expectations.
• Customer Service: Adapting to diverse customer expectations and communication styles.
• Marketing and Sales: Understanding cultural influences on consumer and channel partner behavior and preferences.
• Negotiations: Recognizing negotiation styles and strategies across cultures.
• Knowledge Transfer: Facilitating effective communication and learning in diverse environments.
• Cooperation: Enhancing team dynamics and collaboration in multicultural settings.
• Human Resources: Culturally aware recruitment, training, and development.
• Innovation: Leveraging diverse perspectives for creative problem-solving.
• Project Management: Aligning project work and processes with cultural contexts.

For a deeper dive into these applications, our article 'Globalisation & Localisation for a Worldwide Business: A Complicated Love Story' is a recommended read. It explores the balance between local adaptation and global standardization, a common challenge for international businesses.

Understanding and integrating cultural considerations can significantly boost the efficacy of your global business operations. However, solutions often vary based on the specific context and the cultural backgrounds involved.

To provide practical insights, Huib, along with InCultures' Pia Kähärä and Hofstede Insights Associate Partner Erika Visser, have authored a comprehensive leadership book on the 7 Mental Images model. This book is a reservoir of knowledge from Huib’s 30-year career, offering case studies and examples on:

• How the Mental Images play into how meetings are run in different cultures
• Varied perspectives on delegation.
• Decision-making principles and processes in different cultures.
• Managing change across cultural divides.
• Organising customer service with cultural awareness.

This book is a must-read for professionals in international business and enlightening for those new to the concept of cultural competence and clustering. You can read more and get your copy here.

"Culture is a complex topic. Running a global organisation is therefore by definition complex. Huib combines his decades worth of experience in strategic cultural training, consulting and coaching with our research based approach to culture, resulting in concrete case studies enabling you to simplify global business complexity while retaining maximum local impact."

Egbert Schram, Group CEO, Hofstede Insights

If you are interested in applying this model and finding solutions to your global business challenges, book a call with our CEO and editor of the book, Pia Kähärä to discuss your specific case and find out how our experts and multicultural team can help.