THE NEW EUROPEAN BUSINESS LEADER 267in 1995. The merger became a clash of titans, pitching button - down
British merchant bankers against the deal - oriented Swiss who had
acquired their organization. Miscommunication and cultural differences
led to a climate of fear and loathing, and before long prime assets were,
as one observer put it, ‘ going down in the elevator in the evening, and
not coming back in the morning. ’
These are only two examples among many. Nearly every CEO can
recount similar experiences. But these particular examples are arche-
typal, in that they illustrate what I see as the underlying cause for the
failure of many European cross - border alliances: a fundamental and
often subconscious fear and loathing on the part of followers, and a
preconceived notion on the part of many business leaders that workers
in countries other than their own tend to be ‘ time - warped proletarians. ’
If these preconceptions and attitudes are ignored, the developments of
successful pan - European business organizations will be nothing more
than an illusion.
However, there is hope. I have observed European business leaders
who are able to calm the fears of the people in their organizations and
build a truly European organization in which their followers can gradu-
ally build on, and go beyond, traditions tied to their individual cultural
identities and create an organization based on trust. Effective leaders are
able to foster a sense of purpose, affi liation, and community in their
organizations that unifi es their employees, wherever they may be in the
world.
But what are the major challenges faced by the leaders of the new
EU and what does it mean to be a European business leader?
The challenge of diversity
It is important to fi rst take a clear - eyed look at the primal ‘ soup ’ from
which European business organizations are beginning to emerge.
The new confi guration of the EU has brought great expectations
and considerable anxiety for organizations and their members. On the
one hand, it can be seen as an opportunity to develop a powerful eco-
nomic entity with a strong cultural heritage, similar values, and enough
diversity to foster creativity and innovation. On the other, it brings the
fear of diluting national identities, clashing cultural norms, religious
strife, and incompatibility of leadership styles and work practices.
Xenophobia within organizational systems is usually more benign
than xenophobia in society at large, but it can still be detrimental if
left unexplored. Organizational systems arise from implicit cultural
assumptions, and as long as people are unaware of these assumptions,