"Culture is not a major issue in my business. While the projects I manage may cover multiple jurisdictions, we are all fluent in English. We all understand each other and work together perfectly well".

This quote from a partner at a magic circle firm raises the question: do the cultural differences at play within the international legal arena matter? Few would answer 'no' to this question, but it is an issue given little attention by many international law firms. When addressed, it is often focused on expatriates or secondees, yet the reality today is that lawyers at all levels across many law firms work with colleagues and clients from different countries and cultural backgrounds.

Yet understanding and proactively managing cultural differences can be a strong source of competitive advantage. Managed poorly, it is a source of poor team performance and fragmented client relationships. This article will explain why and examine what firms can do to realise this advantage.

Lost in translation

Consider this scenario. You are British and you send an email to your Italian colleague: "I wonder if we could perhaps discuss the latest developments relating to client X next Wednesday?" Clear enough? But what if (as in the case of your Italian colleague) English is not your native language. Is it still clear? Probably not. Is the 'I wonder' a statement that 'I would like to', or a question 'Would you like to', or simply a query regarding diary availability? And what role does the word 'perhaps' play? It is not always clear and this is because many British businesspeople are 'implicit' communicators. In other words, our communication styles can be quite indirect, to avoid what, in our view, would be unnecessary confrontation, impoliteness or a lack of consideration.

This is just one simple example of how cultural norms in one country can create confusion, misunderstandings and, potentially, poorly implemented client projects when working with others. So, what is culture and why are its implications important?

One definition of culture is 'the software of the mind'. Everyone has a unique set of cultural orientations, influenced from our family, friends, working environment, regional and national culture as well as influences from prolonged travel and interaction with individuals from other cultures. These orientations include how we relate to others, how we make decisions and how we think. Normally they are so engrained in our psyche that they become invisible to us, in the same way that navigating around a piece of software becomes an unconscious process once we know it well. The problem is, our colleagues and clients from different cultural environments are all using their own individual cultural software. The key, then, is to understand both one's own dominant cultural orientations and those of our colleagues and clients. Then we can make informed decisions on how to deal with any cross-cultural situation.

Here are some illustrative issues relating to cultural differences and how we can manage them proactively:

Effective collaboration

To service the requirements of international clients, law firms are increasingly creating global client teams with members drawn from across the firm, and from different cultural backgrounds. Multicultural teams tend to be either the best or the worst performers in comparison with 'monocultural' teams. Why?

The difference comes from how these teams are managed and led. All too often, diverse team members feel they have to 'fit in' with the working style of the lead partner or dominant office. Yet an opportunity exists to generate value out of the diversity of the team.

The most innovative and successful global teams are those whose leaders recognise this, and who 'co-create' a working style in conjunction with team members that allows all to bring their unique contribution and approach to the table.

Successful relationships

In certain 'task-driven' cultures – for example the UK, the US or Germany – business people are often comfortable 'getting down to business' very soon after meeting their colleagues or clients for the first time. There is a feeling that things get done when the right plans and processes are in place. But in more 'relationship-driven' cultures, such as China, the United Arab Emirates or Mexico, there is often a need to build trust before much progress can be made. In other words, things get done only once the right relationships are in place.

A task-driven lawyer working with a relationship-driven client is therefore unlikely to be able to build trust by focusing purely on the legal matter in hand. Substantial time may be needed to first build the relationship. Similarly, lawyers from more relationship-driven cultures working with clients from primarily task-driven cultures should not take a lack of interest in their families or life outside of work as an affront or lack of respect.

Understanding the group context

The relationship between an individual and the groups they form part of (for example family, company and society at large) varies enormously across different cultures and has major implications for how that individual, whether a client or an employee, should be treated in the context of their day-to-day work.

Some cultures are quite individualistic, Anglo-Saxon countries such as the UK being a good example. Generally speaking, an individual places his or her goals and desires higher than colleagues. There is an expectation to be praised and financially rewarded for one's own efforts. In Japan – a more group-oriented culture – there is a saying 'the nail that sticks out is hammered down'. Being singled out for individual praise or financial reward may actually be undesirable and embarrassing due to the disharmony this may create within the peer group. Law firms need to consider this issue not only in relation to remuneration systems, but also other key business processes influenced by individual-group dynamics, such as decision-making, internal communication and leadership styles.

Understanding the individual

As in all issues of culture, there are no hard and fast rules. In the example just given, younger generations of Japanese lawyers, having studied overseas or having worked for long periods with colleagues from more individualistic cultures, may feel quite comfortable in receiving individual praise in a group meeting. The key, then, is to recognise that every individual is different, and to seek to understand their key cultural orientations as early as possible.

Various frameworks exist to help with this cultural process (for example, TMA World's Country Navigator World Prism framework). These frameworks identify behavioural 'tendencies' (i.e. behaviours that are common within a given culture but are not universal) but emphasise the need to avoid stereotyping (fixed views about the behaviour of a group leaving no room for individual differences). It is also essential to look beyond the more visible differences between one culture and another (for example, dress, language, forms of social behaviour) to understand the underlying values and attitudes that drive behaviour.

Being a truly effective legal services provider to the world's major organisations requires not only a network of international offices, but a genuine understanding by all key lawyers and support staff of the cultural issues that affect core law firm business processes. These include internal and external communication, client relationship management, lawyer recruitment, retention and reward, teamwork and collaboration, decision-making and knowledge management. Those firms taking active steps to generate value from the diversity of their internal talent and their clients will be those best placed to compete in the increasingly international business environment.

Steven Parkinson is a senior consultant with global training and talent development consultancy TMA World.