How Culture and Context Develop the Resilience Companies need for Growth
May 8, 2023 - In a forthcoming chapter of mine in an anthology on resilience, I highlight two simple things most companies forget or unaware of when they expand into new markets: culture and context.
Despite “resilience” being a buzz word today, research and studies on resilience are based in a handful of countries from North America and Europe that comprise just 15% of the world’s population with an above-average economic and educational level and a substantially above average income.
Thus, the majority of countries and 85% of the globe’s population have simply been ignored.
However, resilience is developed through the lenses we view and experience the world: our cultures and the context of our history, society, government, faith and race.
I experienced this firsthand when I moved to Africa and came face-to-face with situations that my life and my career had not prepared me for.
I love languages and at the time I first landed in Africa, in Kenya, I was fluent in five. But Kenya has over 30 languages and I only spoke one of them – English. Looking back, what first seemed overwhelming is now second nature. I quickly learned Swahili and a smattering of many local languages which ensured I was never overcharged in the market or on the matatus (public mini vans).
With each year I spent in Africa, I grew in my understanding of their cultures and the context of their lives which, without realizing it, also grew my resilience and thereby my effectiveness in these markets.
Today, understanding local business environments, sourcing accurate statistics and knowing the protocol for ministerial or presidential meetings all comes naturally.
I smile when people tell me that I must be very resilient to have lived and worked across Africa for so many years. The truth is, each one of us, hopefully, develops resilience in accordance to the always changing context of our lives.
The Importance of Context to Resilience
How would you rank the following countries in terms of their resilience: Afghanistan, Chile, France, Iraq, Mozambique, New Zealand, and the USA.
To answer that, you’d first need to “walk a mile in their shoes” to understand the context within which they live their daily lives. Does the war and shattered economy in Afghanistan make them any more or less resilient compared to the growing polarization in American society, or the insurgency and 5 major cyclones in 5 years that Mozambicans are dealing with?
Like the Timex watch, people in each of these countries continue to “keep on ticking”; earning a living and raising families.
An awareness of context allows for a more relevant definition of and understanding of resilience. As does an appreciation of culture.
Cultural Resilience
You have seen the headlines:
Home Depot pulls out of China, failing to inspire DIY trend
Shoprite exits Uganda, can’t beat out local competition
Starbucks flounders in Australia; drinks too hot and too expensive
Walmart creeps out German consumers with their greeters
Woolworths exits Nigeria, unable to adapt to local business environment
In their home markets, these companies displayed resilience – able to navigate recessions, supply chain challenges, competition and more. What happened?
They lacked resilience because they didn’t do their homework. They showed little interest in or respect for the local culture. The same culture that informs how business is done, their employees work ethics, how leaders are viewed, how consumers view or use products, and more.
Increasing the odds of success in new markets goes hand-in-hand with increasing your resilience. And it is as straightforward as making the time and effort to understand local culture and context.
This requires having the appetite for and being willing to create the bandwidth for your team to invest the necessary time (and budget) to get to know the realities on the ground prior to entering new markets. Only with this appetite and bandwidth will you know where and how to correctly invest your capital and develop your resilience.
Want to know more?
Drawing on my expertise of starting, acquiring, merging and growing companies around the globe, I advise companies and investors on the ins and outs of local culture so they can increase their odds of creating successful, sustainable and resilient businesses. Reach out to me at drdeannedevries@icloud.com
You can also read or listen to my book, Africa: Open for Business, to discover the ABCs of investing in Africa and how you too can become part of the growth story of this vibrant continent.
Photo: Marvel Studios; marvel.com