Culture Matters, But Not Everywhere in the Same Way

Culture is one of the most discussed topics in HR. And one of the most misunderstood.

Especially when comparing American and European companies.

In many US based organizations, culture is treated as a strategic asset. It is explicit, codified and actively managed. Values are written down, communicated constantly and reinforced through leadership behavior, incentives and performance systems. Culture is something you talk about openly. Often loudly.

This is closely linked to how companies operate in the US. Organizations are more market driven, more individualistic and more outcome oriented. Culture serves as a coordination mechanism. It creates alignment in fast growing, highly dynamic environments where formal structures would slow things down.

In Europe, culture works differently. It is often implicit rather than explicit. Instead of being articulated as values, it is embedded in history, social norms and institutional frameworks. Works councils, labor law, collective agreements and long term employment relationships shape behavior at least as much as leadership slogans do.

As a result, European companies tend to underestimate culture as a management lever. Culture is seen as something that exists anyway. Something that evolves over time. Something you do not actively design, but rather respect.

This difference creates friction. Many European organizations adopt US inspired culture frameworks, value statements or leadership models. But they often fail to generate real impact. Not because the ideas are wrong, but because they clash with deeply rooted assumptions about authority, participation and stability.

At the same time, American companies sometimes underestimate the strength of European contexts. What looks like resistance from a US perspective is often a rational response to legal, social or historical constraints.

The key insight is simple. Culture is never universal. It is always contextual.

Effective HR does not copy culture models across borders. It understands the underlying logic of how organizations coordinate behavior. And it works with that logic instead of against it.

In a globalized and AI driven world, this difference becomes even more relevant. Technology may scale processes. Culture never does.

Understanding that may be one of the most underrated competencies in modern HR.