Naveen Kumar, Team 5

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Nov 6, 2013 (3 years and 8 months ago)

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Naveen Kumar, Team 5

Outline


Importance of Knowledge sharing across the globe and
the challenges involved


Review of 5 papers and 3 cases by AME


Paper 1: “Five Steps to Creating a Global Knowledge
-
sharing System:
Siemens ShareNet”



Paper 2: “Transferring Management Knowledge to Russia: A Culturally
-
based Approach”


Paper 3: Transfer of Managerial Practices by French Food Retailers to
Operations in Poland


Paper 4: “Transferring a Lean Production Concept from Germany to the
United States: the Impact of Labor Laws and Training Systems”


Paper 5: “Cross
-
border Transfer of Knowledge: Cultural Lessons from
Project GLOBE”


Case 1 Cultural Counterpoints
-

challenges of transferring U.S. management
know
-
how to a Norwegian MNC in the energy sector


Case 2: “The Shortcomings of a Standardized Global Knowledge
Management System: The Case Study of Accenture,”
-

Asia to the USA


Case 3: “Applying Knowledge Management Concepts to the Supply Chain:
How a Danish Firm Achieved a Remarkable Breakthrough in Japan,”

Key Learnings


Paper 1: “Five Steps to Creating a Global Knowledge
-
sharing System: Siemens
ShareNet”



What are the challenges ? Any ideas ??


Global knowledge management systems needs to include local and regional
knowledge components (e.g., regional knowledge platforms).


Cultural Differences needs to be taken into account


Case 2 “The Shortcomings of a Standardized Global Knowledge Management
System: The Case Study of Accenture,”
-

Asia to the USA


Alternative
knowledge management systems may emerge locally

Key Learnings


Paper 2: “Transferring Management Knowledge to Russia: A Culturally
-
based
Approach”


What are the challenge of doing business in Russia?


Transition from communist mindset to a free market economy is a challenge


Any takers??? Transfer of Knowledge to a non
-
western country needs new set of tools
and people with specific personalities who fit culturally with the tool.


Awareness of cultural and institutional back ground
-

needs time and experience


Need to create an atmosphere conducive to cross
-
cultural knowledge sharing

Key Learnings


Paper 3: Transfer of Managerial/Production Practices by French Food Retailers
to Operations in Poland


Strong resistance initially but later adjusted to comply with local culture


After few years Successfully implemented the intended management practices


Transfer of management know
-
how evolves through time.


Key Learnings


Paper 4: “Transferring a Lean Production Concept from Germany to the United
States: the Impact of Labor Laws and Training Systems”


Difficult to transfer production processes rigid to flexible societies, and vice versa.


Optimum way of adjusting production processes to suit the behavioral norms of
other cultures?

Summary


The transfer of management know
-
how from any cultural base is not
straightforward and follows the
step by step process
for the
implementation of knowledge transfer systems


The transfer of management knowledge
takes time
. A more detailed
process suiting all the stakeholders has lesser implementation problems


requires a
reduction of complexity
i.e. attitudes, structures and


processes at corporate headquarters and needs to take into account
the
cultural differences

in managing the international operations


heavily dependent on how the
values, attitudes, competences, and
personality traits of the people involved

in order to handle the cultural
issues


Uniform transfer process
may
not

be
effectiv
e. If is the case, regional
management are likely to establish its own subsystems and process


Thank you




Next case

> GLOBE Project

Cultural Lessons from Project GLOBE

When information is inadequate


Foreign Direct Investments have increased from $55 Billon
in the early 1980’s to almost $1.3 Trillion in 2000.


International electronic payments have increased from $7.5
billion to $60 billion.


In 2000 41% of all M&A activities were cross
-
border.



Billions can be Lost


GM was losing $2 billion a week in production cost after
acquiring a Japanese production process.


GM Failed to take into account the culture of the
Japanese workers.

Problems that can occur


Example (NORDED and TAI BANK)


Hierarchical culture and authoritarian style


Resistance to Change


Lack of collaboration



“Cross
-
border transfer of knowledge is often affected by
foreseeable cultural differences that are typically
underestimated, regardless of the good intentions of all
members of the parties.”

Cultural Practices and Cultural Values


Tells us the current perceptions of the culture.


Tells us the aspirations and the direction that culture wants to go
and develop into.


“As Is” Cultural Practices “Should Be” Cultural
Values

“Should Be” can be used to determine a cultures desire to change.


Two Cultures can have different “As Is” but if the values are close
“Should Be”, the transfer of knowledge will be easier.

Walmart

in China


Walmart

has 189 units in 101 cities, and created over 50,000 job
opportunities across China.


local sourcing. We have established partnerships with nearly
20,000 suppliers in China. Over 95% of the merchandise in our
stores in China is sourced locally.


All stores in China are managed by Chinese local talent.


T
he company established the “
Walmart

China Women’s
Leadership Development Commission” for driving women’s
career development.

Walmart

in Germany


Walmart

Failed to Understand the Culture


Germans did not understand the idea of buying in bulk


Failed to give the German managers the courtesy of speaking to
them in German while in Germany.


Not prepared to deal with the German government and the
price restraints that they placed on certain goods.

Emphasizing Similarities


Minimizes negative consequences of the “As Is”


Understanding cultural differences

McDonalds


Drive
-
in

Wal
-
Mart


Live Aquatics
Grocery Selection

Ford

GM


Fiesta


Buick

Nine GLOBE Cultural
Dimensions


Help with foreseeing cultural
difficulties

South Asian Culture and North European
Culture

Power Distance


Degree to which a culture’s people are
separated by power


South Asia had the highest ranking


North Europe had the lowest ranking

Uncertainty Avoidance


Degree to which a culture should
seek orderliness and structure


South Asia ranked low


North Europe ranked 1
st


Dimensions can be used to help with the transfer
of knowledge

Nine GLOBE Cultural
Dimensions, Cont.

In
-
Group Collectivism:



South Asia ranked (1) while
Nordic Europe ranked (10)

Institutional Collectivism:



South Asia ranked (1) while
Nordic Europe ranked (10)

Future Orientation:



South Asia ranked (2) while
Nordic Europe ranked (10)


Why does this matter?



Knowledge transfer across
cultures is difficult, not to
mention how to disseminate
the information once received


In
-
Group Collectivism


Degree to which a culture’s people (
should) take
pride in and (should) feel
loyalty toward
their families, organizations,
and employers



Institutional Collectivism


Degree to which individuals are (
should be
) encouraged by institutions to
be
integrated
into broader entities
with harmony
and cooperation as
paramount
principles
at the expense of
autonomy and
individual
freedom



Future Orientation


Degree to which a culture’s people
are (should
be) willing to defer
immediate
gratification
for future
benefits



Gender Egalitarianism


Degree to which a culture’s people (
should) support
gender
equality



Assertiveness


Degree
to which a culture’s people
are (should
be) assertive,
confrontational,
and aggressive



Humane Orientation


Degree to which a culture’s people
are (should
be) fair, altruistic,
generous,
caring
, and kind toward
others



Performance Orientation


Degree to which a culture’s people (
should) encourage
and reward people
for
performance

NORDED set up a motivational leadership
program for TAI BANK’s managers


NORDED had wanted to
convey a low power
distance and high
institutional
collectivism; i.e. they
promoted an open
feedback system with
TAI BANK.


TAI BANK, with their
high power distance and
high in
-
group
collectivism, did not take
full advantage of the
consultation. They
believed their employees
should follow
NORDED’s advice
without discussion.

High Power Distance vs. Low Power Distance



In countries where the sense of organizational
hierarchy is strong, like France and Mexico, change is
brought about from the top and employees at all levels
expect new direction from their managers. The
employees expect guidelines to be set up for them and
to follow them without question. What power distance
do they perceive?

HIGH POWER DISTANCE


National Culture Differences and
Knowledge Transfer


Tacit information (such as leadership skills and
management know
-
how) is not easily codified and
depends on human intuition. In addition, it’s often
considered the most valuable knowledge which poses a
problem.


It’s one thing to see the advantages of adopting
knowledge and it’s quite another thing to overcome
cultural boundaries and use the knowledge
effectively

Perceived value of knowledge


Differences
in cognitive
structures
, values, and
practices, as well as
language and
communication
barriers, all raise the
costs involved
in knowledge
transfer



What if there isn’t any perceived value of knowledge?


National Culture and Cultural Differences Shape

the Motivational Disposition of the Source Unit


The source country’s management must
spend time and
resources to
provide relevant knowledge to the target
unit.
Their willingness to do this is affected by
their own
national
culture.


Ex. “Mexicans tend to require more structure and
definition of their role and responsibilities than do
Canadians. When a Canadian corporation acquires a
Mexican company, its Mexican employees are often looking
for information and structure that is not forthcoming,
because their new Canadian managers deem it
unnecessary. The Mexican organization often grinds to a
halt, since Mexican employees are unlikely to go and ask for
the information they need, since this may be viewed in
Mexico as questioning management's authority.”

NORDED

TAI BANK


High uncertainty avoidance:


NORDED spent a high
amount of time and effort to
ensure the success of their
program


Low uncertainty avoidance:


TAI BANK sent emails to
NORDED about changes
taking place within the
program as the program was
about to start


High in
-
group collectivism:


TAI BANK almost certainly
was not used to working with
outside partners even though
the intentions were
good

Both NORDED and TAI bank had low
assertiveness; this led to both companies
backing off when the

communication
soured

How to Manage Cross Cultural Issues


Advice on Cross
-
Border Knowledge Transfer:



Define common goals


Map the cultural profiles


Assign relationship managers


Learn from knowledge transfer

Define Common Goals

Hewlett
-
Packard/Compaq

Paramount


Same name, different
company after merger.


New vision is needed
internally.


New identity must be formed
externally.


Organizational Culture
Inventory Ideal.


Culture can be achievement
oriented.


Culture can also be based on
strong interpersonal
relationships.

Map the Cultural Profiles


What should the focus of a cultural profile be on?



Why is doing this essential for success?



Examples

Assign Relationship Managers


Position specific:




Job duties?



Ideal characteristics?



Constraints?


Learn From Knowledge Transfer


Why is it important?


What are methods of
execution?

Conclusion


In one sentence only…



“Be proactive and systematic.”




Questions?