Fons Trumpenaars, a Dutch-French “You also need to think about where you Cuervo allows people to get involved in author in the field of cross-cultural com- locate a hub. Some countries can have decision making and understands that munication created a seven-dimension cost advantages but if the culture is very acquired companies with individualistic model to show what distinguishes people risk averse they will need to test things cultures operate more efficiently if they from one culture to another. over and over again until they feel sure are given the opportunity to use their they will work. Those are not great initiative. Loria explains: “You need to The first dimension is universalism, the places for innovation, which demands spend time with the people in the com- belief that ideas and practices can be risk taking,” adds Elespuru. panies acquired and build interactive applied everywhere without modifica- teams, making them participate in your tion. Laws, rules, values and obligations Another important factor to consider is objectives and participating in theirs. I are given high importance. People try to how different cultures deal and engage am going to achieve my goals if they deal fairly with others based on these with time. Improving efficiency often achieve theirs.” rules, but rules come before relation- involves prioritising and time manage- ships. At the other end of the spectrum, ment. This varies widely among coun- Tony Osentoski, Head of Corporate particularist cultures believe that each tries, potentially becoming a source of Treasury & Insurance, Asia Pacific at circumstance and each relationship, dic- misunderstanding. The language you Solvay agrees that focusing on building tates the rules that they live by. Their use is important. “I need this ASAP” relationships is important in Asia too. “If response to a situation may change, might mean very different things you want a homogeneous approach you based on what’s happening in the depending on who you talk to. To avoid have to make the team come together, moment, and who’s involved. Typical confusion you must be clear and specific make it a priority so that everybody universalist cultures include the US, about deadlines. understands what is happening in differ- Canada, the UK, the Netherlands, Ger- ent locations. This will help deliver cor- many, Scandinavia, Australia, and Swit- Mergers and acquisitions are also testing porate objectives. We regularly have zerland. Particularistic cultures include occasions and show the power dynamics calls in which we give people a platform Russia, Latin-America, and China. at play when different cultures meet. to present an update on their countries. Pepsico’s Premoli, says: “One has to They highlight a regulatory change or So what happens when universalist cul- understand that mergers are never something that is happening and how it tures, such as the Swiss try to impose the between two equals, there is always one impacts them. That raises awareness same practices everywhere without mod- culture that predominates”. among the rest of the group of what it ification? How do they manage in Latin means to manage treasury in other America or Russia where a particularis- This was allegedly the case in the Nokia countries, the tasks they face every day. “ tic outlook prevails? Siemens initial joint venture. An ex- employee recalls how difficult it was for Treasurers worried about achieving Elespuru’s experience at Swiss multina- the proud employees of an iconic Ger- maximum efficiency, integration and tional Oriflame convinced him that “It is man firm such as Siemens to accept control should know that treasury is not important to have a model that has been Nokia’s lead. Within three years most just about visibility of cash but also about tried and tested. If you intervene in sub- treasury staff from Siemens had left. visibility of people’s values and feelings. sidiaries and you make a mistake, you Nokia eventually bought out Siemens These dictate the way they understand undermine the project, people start ques- shares, taking total control. the world and their approach to work. Treasury is not only about reconciliation tioning it. When there are no clear roles For Pepsico’s Miguel Premoli the best of accounts but about reconciliation of or processes, each situation, each subsidi- outcome in a merger or acquisition is to cultures, managing financial risks and ary becomes a model in itself. In my “extract the best of each team and bring cultural sensitivities, investing time in experience, the best way to mitigate cul- them together”. listening and communicating, borrow- tural differences and the resistance to ing the best of each cultural system to change is to create a centralisation team. This of course requires an appreciation achieve synergies. They should go to the countries, collate of the other culture, be it national or cor- information on how they manage daily porate. It is not uncommon for cultures operations, contrast that with the model that have traditionally been on the and bridge the gap.” acquiring side to find it difficult to accept being bought and managed You should also consider how multicul- by firms from emerging markets. tural your centralisation team is. “You Maria Loria, Corporate Treasurer might want to keep some diversity within at Jose Cuervo, a leading tequila the team but not so much that more noise company from Mexico, had a taste could be generated during the centralisa- of this when they started buying tion process.” concludes Elespuru. companies around the world. Some countries initially had reserva- Beyond country and company cultures, tions about being leaders also make their mark. Miguel led by a Mexican Premoli, VP Talent Management at Pep- company but her sico Europe explains: “I have been at the recognition of EU HQs of a company where the leader what the other cul- was from the UK and that culture clearly tures could bring dominated until he was replaced by to the table was someone from Spain. The dynamics and helpful. Her aim the way of doing things changed, even if was to look for syn- policies and corporate culture remained ergies and to find a the same.” win- win situation. 42 // TREASURY PERSPECTIVES 2017/2018 www.eurofinance.com