The Language of Global Success: How a Common Tongue Transforms Multinational Organizations

Tsedal  Neeley

Book | 2017

The Language of Global Success: How a Common Tongue Transforms Multinational Organizations

Abstract

For nearly three decades, English has been the lingua franca of cross-border organizations, yet studies on corporate language strategies and their importance for globalization have been scarce. In The Language of Global Success, Tsedal Neeley provides an in-depth look at a single organization—the high-tech giant Rakuten—in the five years following its English lingua franca mandate. Neeley’s behind-the-scenes portrayal explores how language shapes the ways in which employees who work in global organizations communicate and negotiate linguistic and cultural differences.

Bringing together 650 interviews conducted across Rakuten’s locations in Brazil, France, Germany, Indonesia, Japan, Taiwan, Thailand, and the United States, Neeley argues that an organization’s lingua franca is the catalyst by which all employees become some kind of “expat”(someone detached from their mother tongue or home culture). Through her unfettered access to the inner workings of Rakuten, she reveals three distinct social groups: “linguistic expats” who live in their home country yet have to give up their native language in the workplace; “cultural expats” or native speakers of the lingua franca who struggle with organizational values that are more easily transmitted after language barriers are removed; and finally “linguistic-cultural expats” who, while neither native to the lingua franca nor the organization’s home culture, surprisingly have the easiest time adjusting to language changes. Neeley demonstrates that language can serve as the conduit for an unfamiliar culture, often in unexpected ways, and that there are lessons to be learned for all global companies as they confront language and culture challenges. Examining the strategic use of language by one international corporation, The Language of Global Success uncovers how all organizations might integrate language effectively to tap into the promise of globalization.

Keywords: Communication; Residency; Corporate Strategy; Globalized Firms and Management; Cross-Cultural and Cross-Border Issues; Brazil; France; Germany; Indonesia; Japan; Taiwan; Thailand; United States;

Format: Print

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Neeley, Tsedal. The Language of Global Success: How a Common Tongue Transforms Multinational Organizations. Princeton, NJ: Princeton University Press, 2017.

Case | HBS Case Collection | December 2018

The Global-Local Tension: Vodafone CEO Vittorio Colao Leading with 'International Values and Local Roots' (A)

Tsedal Neeley

Vittorio Colao, CEO of telecommunication giant Vodafone, must respond to reports of disturbing accounting practices at two of Vodafone’s operating companies. In one case, €60 million have been misreported due to a series of failures to check manual accounting processes. The situation has been escalated to Vodafone’s audit committee, which expects Colao and his team to act drastically. In the second case, €7 million have been misreported through deferred recognition of costs into the future. The two cases challenge Colao’s organizational model of International Values and Local Roots that aims to maintain productive tension between global mandates and local practices. Colao meticulously designed his model based on the key value of trust, his unwavering convictions earning him the moniker of the “benevolent dictator.” Colao is acutely aware that his response to the accounting discrepancies will be a referendum on his leadership for over 120,000 employees worldwide. If he doesn’t make the right decisions, the consequences will reverberate throughout the organization and erode confidence in the value of trust that he relentlessly worked to establish.

Keywords: GLOBAL-LOCAL; organization culture; global identity; local identity; accounting discrepency; Globalization; Leadership; Trust; Organizational Culture; Organizational Design; Organizations; Identity; Local Range; Global Range; Values and Beliefs; Accounting Audits;

Citation:

Neeley, Tsedal. "The Global-Local Tension: Vodafone CEO Vittorio Colao Leading with 'International Values and Local Roots' (A)." Harvard Business School Case 419-031, December 2018. View Details

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Vittorio Colao, CEO of telecommunication giant Vodafone, must respond to reports of disturbing accounting practices at two of Vodafone’s operating companies. In one case, €60 million have been misreported due to a series of failures to check manual accounting processes. The situation has been escalated to Vodafone’s audit committee, which expects Colao and his team to act drastically. In the second case, €7 million have been misreported through deferred recognition of costs into the future. The two cases challenge Colao’s organizational model of International Values and Local Roots that aims to maintain productive tension between global mandates and local practices. Colao meticulously designed his model based on the key value of trust, his unwavering convictions earning him the moniker of the ‘benevolent dictator.’ Colao is acutely aware that his response to the accounting discrepancies will be a referendum on his leadership for over 120,000 employees worldwide. If he doesn’t make the right decisions, the consequences will reverberate throughout the organization and erode confidence in the value of trust that he relentlessly worked to establish.

Despite the recognition that knowledge sharing among employees is necessary to enact knowledge strategy, little is known about how to enable such sharing. Recent research suggests that social media may promote knowledge sharing because they allow social lubrication and the formation of trust. Our longitudinal and comparative analysis of social media usage at two large firms indicates that users who participate in non-work interactions on social media catalyze a cycle of curiosity and passable trust that enables them to connect and share knowledge. Paradoxically, the very non-work related content that attracts users to social media and shapes passable trust can become a source of tension, thwarting a firm’s ability to encapsulate knowledge in the form of routines and to use it to enact its strategy.

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The Language of Global Success: How a Common Tongue Transforms Multinational Organizations

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