People vary enormously in how they perceive and respond to failure, and those perceptions and responses are shaped by the cultures in which they grew up or now work. Western multinationals are sinking a huge amount of money into India, China, and Brazil, and emerging giants in those countries are setting up operations in world markets as well. Any business with global aspirations must take seriously cultural differences in general and around failure in particular. Drawing on the findings of a global survey that has been ongoing for 30 years, Trompenaars and Woolliams have identified the dimensions along which people from various cultures differ regarding failure. They discuss the five most important of those dimensions: (1) Do we view our environment as internally or externally controlled? (2) Which is more important-rules or relationships? (3) Are failures the responsibility of the individual or of the team? (4) How much do we identify with our failures? (5) Do we grant status according to performance or to position? The authors describe how some forward-looking companies are managing to reconcile cultural differences to create a powerful platform for innovation.

Frank Waterhouse, CEO of Argos Diesel, Europe, is exasperated. Bert Donaldson, who arrived in Zurich a year ago to create a European team--to facilitate communication among the parts suppliers that Argos has acquired over the past two years--just isn't working out. Although he has excellent credentials, both as a successful team builder at Argos International in Detroit and as a teacher in Cairo, his style seems abrasive here and he is behind schedule in implementing the team-building program. Moreover, Waterhouse is worried that Donaldson's failure will reflect badly on himself. But Waterhouse can't simply fire Donaldson. Donaldson is a smart man with a record of genuine successes in the States. If he gets fired, his career may be destroyed. Further, the CEO of Argos International thinks the world of him and is counting on Waterhouse to make this assignment work. Can Waterhouse teach Donaldson cultural awareness? Can he help him become effective in his job? Waterhouse has scheduled a conversation with Donaldson to discuss the situation. What should he say? For teaching purposes, this is the case-only version of the HBR case study. The commentary-only version is reprint 95401Z. The complete case study and commentary is reprint 95401.

Frank Waterhouse, CEO of Argos Diesel, Europe, is exasperated. Bert Donaldson, who arrived in Zurich a year ago to create a European team--to facilitate communication among the parts suppliers that Argos has acquired over the past two years--just isn't working out. Although he has excellent credentials, both as a successful team builder at Argos International in Detroit and as a teacher in Cairo, his style seems abrasive here and he is behind schedule in implementing the team-building program. Moreover, Waterhouse is worried that Donaldson's failure will reflect badly on himself. But Waterhouse can't simply fire Donaldson. Donaldson is a smart man with a record of genuine successes in the States. If he gets fired, his career may be destroyed. Further, the CEO of Argos International thinks the world of him and is counting on Waterhouse to make this assignment work. Can Waterhouse teach Donaldson cultural awareness? Can he help him become effective in his job? Waterhouse has scheduled a conversation with Donaldson to discuss the situation. What should he say? In 95401 and 95401Z, Douglas A. Ready, Susan Schneider, Bjorn Johansson, Fons Trompenaars, and Roman Borboa offer advice on this fictional case study.