Bohuslav Lipovsky, the founder of CE Interim Group, is a recognized expert in the field of interim management, particularly within the culturally diverse landscapes of Central and Eastern Europe (CEE). His extensive experience in crisis management, turnaround, and international expansion has positioned him as a key figure in helping companies navigate the complexities of global business environments. In this interview, conducted by Nina Neubauer from Management Facory, Bohuslav shares his insights on the critical role of cross-cultural communication in achieving success in interim missions across CEE.

Nina Neubauer: Bohuslav, You have been instrumental in leading successful interim missions across Central and Eastern Europe for more than a decade. From your experience, why is cross-cultural communication so crucial for interim managers operating in this region?

Bohuslav Lipovsky: Cross-cultural communication is the backbone of successful interim management, especially in a region as diverse as Central and Eastern Europe. This area is not a monolithic entity but a mosaic of cultures, languages, and business practices. Understanding these cultural nuances is essential because they directly impact how business is conducted, how relationships are built, and how decisions are made. Effective cross-cultural communication allows interim managers to navigate these differences smoothly, preventing misunderstandings that could derail projects and ensuring that initiatives align with local expectations and norms.

Nina Neubauer: What are some of the common cultural challenges that interim managers face in Central and Eastern Europe, and how can they overcome them?

Bohuslav Lipovsky: One of the most common challenges is the varying degrees of formality and hierarchy across the region. In some countries, like Slovakia and Hungary, business interactions are highly formal, and respecting titles and hierarchies is crucial. In contrast, in places like the Czech Republic, communication may be more direct, yet still deeply rooted in cultural norms. Another challenge is understanding the balance between direct and indirect communication styles, which can vary significantly even within the same region. To overcome these challenges, interim managers must be highly adaptable. They need to invest time in learning about the specific cultural contexts they’ll be working in and be observant and flexible in their communication style. Building strong relationships is also key, as trust and personal rapport often play a critical role in business dealings in this part of the world.

Nina Neubauer: Can you share a specific example where cross-cultural communication played a pivotal role in the success of an interim mission?

Bohuslav Lipovsky: Certainly. We had a case in Romania where an international manufacturing firm was struggling to modernise its operations due to cultural clashes between the local team and the international leadership from France. The local team was hesitant to adopt new practices introduced by the international management during the post merger integration, partly because of communication gaps and partly due to a lack of understanding of the local work culture. We worked with an interim manager who was not only an expert in lean manufacturing but also fluent in Romanian and deeply familiar with the local business etiquette. Like the majority of our cross-cultural executive interim managers, he was of a French origin, married to a Romanian wife, living in Romania for almost 15 years.

This manager acted as a cultural bridge, facilitating better communication, aligning expectations, and gradually introducing the new practices in a way that was respectful of the local team’s values. As a result, the project not only succeeded but also led to a significant improvement in the relationship between the local and international teams.

Nina Neubauer: Digital transformation and the use of artificial intelligence are hot topics globally. How do you see cross-cultural communication influencing these initiatives in Central and Eastern Europe?

Bohuslav Lipovsky: Digital transformation and AI requires buy-in from all levels of an organisation, which makes cross-cultural communication even more critical. In Central and Eastern Europe, where digital adoption can vary widely from one country to another, interim managers need to tailor their approach to fit the cultural context. For example, in countries where there is a strong hierarchical structure, such as Bulgaria, it’s important to secure the support of top management first and then cascade the initiative downwards. On the other hand, in more egalitarian cultures, like those in the Baltic states, engaging middle management and getting them involved early in the process can be more effective. By understanding these cultural dynamics, interim managers can ensure that digital transformation efforts are embraced and implemented more smoothly across different regions.

BTW did you know that Romania’s median download speed of internet (214Mbit/s) is higher than in Switzerland (205Mbit/s), and also higher than Germany (92Mbit/s) and Austria (94Mbit/s) combined?

Nina Neubauer: Sustainability is becoming increasingly important in business. How does CE Interim approach sustainability initiatives in Central and Eastern Europe?

Bohuslav Lipovsky: Sustainability is indeed gaining traction, and it’s an area where cross-cultural competence is crucial. Many Central and Eastern European countries have unique environmental regulations and cultural attitudes toward sustainability. Interim managers need to navigate these complexities by understanding not only the legal requirements but also the local mindset towards sustainability. For instance, in some countries, especially in Slovakia, or Poland there may be a strong cultural emphasis on preserving natural resources (the famous High Tatras mountains), which can be leveraged to gain community and stakeholder support for sustainability projects. CE Interim places a strong emphasis on cultural training for our managers, ensuring they are equipped to handle these nuances and drive sustainability initiatives that resonate with both local and global standards.

Nina Neubauer: What advice would you give to businesses looking to improve their cross-cultural communication strategies for interim missions in Central and Eastern Europe?

Bohuslav Lipovsky: My advice would be to start with cultural understanding before any mission begins. Understanding the local culture is not just a nice-to-have; it’s a necessity for success. Businesses should invest in training that covers not only language and etiquette but also deeper insights into local business practices, cultural heritage and decision-making processes. Additionally, building a network of local contacts who can provide ongoing insights and guidance is invaluable. Businesses should choose interim managers who not only have the technical expertise but also the cultural intelligence to navigate these complex environments effectively. At CE Interim, we focus on these areas to ensure our managers are fully prepared to meet the challenges of cross-cultural communication in Central and Eastern Europe or in the Middle-East.

Nina Neubauer: Thank you, Bohuslav, for sharing your expertise. It’s clear that mastering cross-cultural communication is a critical component of successful interim management.

Bohuslav Lipovsky: Thank you. It’s been a pleasure discussing these important topics with you. Cross-cultural communication is indeed a cornerstone of what we do at.