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Cheers, Jeers, and a Globie

A couple things struck me after I sent off last week’s blog entry on global mindset: First, lots of people who go on assignment think they have one. (After all, if they didn’t, they wouldn’t have been selected for the assignment, right?) Second, most people really don’t. Third, the people who’ve actually developed a global mindset can bring extraordinary value to their organizations.

I’m reminded of two, probably extreme, assignees I’ve worked with here in China and their relative global mindsets. The first, "Mr. A," has worked in Asia for more than ten years, speaks fluent Chinese, and is by nature very aware of the impact he has on others and constantly checks with local employees to validate his own assessment. "Mr. B" has also worked in Asia more than ten years, speaks reasonably fluent Chinese, loves the expat premiums, and doesn’t particularly care what anyone thinks of his style.

Mr. B was brought in by his company to fix a branch that had major and serious relationship problems with local Chinese staff and partners, issues so large that the Chinese central government had been made aware of them. Not healthy. On joining the organization, he cut off communication between employees and the home office, making himself the only communications point. He systematically eliminated anyone he didn’t like. He even designated specific individuals to serve as "office spies." (The Chinese staff even circulates a list periodically of who those folks are so staff know who to avoid!)

Mr. B has great technical knowledge of Chinese history – and is probably trying to emulate some portions of its authoritarian past and present. But he has none of the social skills necessary to build relationships or the psychological capabilities to bring together an organization in disarray. The consequences have been severe… 40 percent turnover and literally millions of dollars in rework. I suspect Mr. B survives in the position because the home office doesn’t know what’s happening over here and keeps hearing the story that the problem lies with the Chinese workers.

Mr. A, in contrast, is one of the best problem resolvers I’ve ever met here. His company once had some massive machinery coming into China on one of those multiple-football-field-size cargo ships. The ship had been delayed enroute because of a typhoon and so was scheduled to arrive in the middle of the night. That was a big problem because (a) the cargo vessel would have to slow down or drop anchor incurring extra costs, (b) the crews standing by to move the machinery to the factory would have to stand down, then get recalled, incurring extra costs, and (c) plant production would be delayed. Even worse: China closed its border at night back then and so the vessel would not be allowed into port at all. Massive and very expensive problem.

Mr. A pulled out all the stops, talking with local port officials and Beijing customs officials. Mr. A’s Chinese staff had his back and went the extra mile in talking with relevant local government agencies. The result? The Chinese government kept the border open for the vessel. No bribes, no special payments. Just relationships and trust built up over time between Mr. A, the authorities, and his staff as a result of his knowledge of China, his demonstrated ability to work culturally appropriately in China, and his social and influencing skills with the authorities. Savings to the company? We calculated it out at something like $5 million.

So this year’s Globie Award for “best example of global mindset in action” goes to Mr. A. All he’s going to get off me is a coffee, though. Times are tight!

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Managing Across Cultures

This story reminds me of a section of the book "Managing Across Cultures: The Seven Keys to Doing Business with a Global Mindset," by Solomon and Schell. I won't name the company, since doing so would contradict the rules regarding commentary on this blog. A large, American discount retailer decided to open business in Germany in 1997, thinking the country was an excellent market for their type of business, especially since other discount retailers had already been successful there. The company's management, marketing and customer service is very American in style, which means that it's people are very informal, friendly and egalitarian (Germans are very formal and hierarchical). "Cultural due diligence" was not incorporated into the company's expansion into the German market. To make the story brief, it turns out that after 9 years and $1 billion in losses, the retailer announced the close of its business in Germany. The ethnocentric views of its management led their German operation to fail, as their business model was not a good fit for German culture. Much like the story of Mr. B above, this company didn't consider their corporate cultural styles when doing business in a foreign country. I use this example in a didactic way, to show that a lack of cultural preparation can indeed translate to a major loss of capital.
Sean Dubberke at 7/21/2009 9:39 AM

Good examples

Hi, Mark,
Two good examples. Mr. A reminded me a notorious case which was national-widely known as the most Niu(aggressive/great/wonderful/...in Chinese)secretary in Shanghai office of EMC in 2006, between the big boss and his local secretary Rebecca.  The boss, a Singapore Chinese, not as lucky as Mr. A, was moved out of China after that case. Later of that, in an HR seminar I attended in Shanghai in March, 2007, an EMC HR head from an EU country made a speech. His speech was so boring, many people were yawning, small-talking, looking at mobiles, etc., I was surprised to hear he threatened the audience if we showed no respect to him he would possibly throw the microphone to someone, as he often did in the company...then I thought no wonder EMC produced such a bad case. The company, or at least, it's China subsidiary, developed such a bad culture by these expats lack of what you said the global mindset.


For Mr. B, he has very good culture intelligence...he knows in which land he lives, basically. Many expats from HQs have no this awareness, while highly aware of their supposed-to-be-higher status in the overseas subsidiaries. I had ever dealt with an expat when I worked in a foreign company. She was very smart, but very aggressive. In the first day we worked together, she blamed me something wrong but actually due to her own mistake. I was angry, however, did not respond a word to her rudeness. Then after lunch time we took a car to Dongguan from Guangzhou. I could feel she immediately started to regret for her maltreatment to me, as she needed my help to let the driver stop at MacDonald...to maintain her higher status in the company she refused to go to local staff cafeteria...but I was still in silence, no response to her request in English...MacDonald passed away, she missed her American lunch... but she should understand that without local people(social captical as what you mentioned) she even couldn't have a MacDonald burger...we worked quite well later, though not so long...

I always believe the core of global mindset is to respect others(as Rebecca required to her big boss in EMC case I cited below), and be sincere...even the way of showing respect is something not right in another culture, people still can feel your sincerity…there is no culture difference of sincerity in human's eyes.

Yingyu

      _____________________________________________
     From: Loke, Soon Choo
     Sent: Saturday, April 08, 2006 1:13 AM
     To: Rebbeca
     Cc: 四高管(four senior managers)
     Subject: Do not assume or take things for granted

     Rebecca, I just told you not to assume or take things for granted on Tuesday and you locked me out of my office this evening when all my things are all still in the office because you assume I have my office key on my person.

     With immediate effect, you do not leave the office until you have checked with all the managers you support - this is for the lunch hour as well as at end of day, OK?

     _____________________________________________
     From: Rebbeca
     Sent: 2006年4月10日 13:48
     To:Loke, Soon Choo
     Cc: China All (Beijing); China All (Chengdu); China All (Guangzhou); China All (Shanghai); Lai, Sharon

     Subject: FW: Do not assume or take things for granted

     Soon Choo,

     首先,我做这件事是完全正确的,我锁门是从安全角度上考虑的,北京这里不是没有丢过东西,如果一旦丢了东西,我无法承担这个责任。(First, I did this completely right. I locked the door for the sake of security. There was ever cases in Beijing office that something got missing before. If anything get lost, I can't take the accountability.)

     其次,你有钥匙,你自己忘了带,还要说别人不对。造成这件事的主要原因都是你自己,不要把自己的错误转移到别人的身上(Second, you have the key, you forgot to take, but blamed others. All reasons of this thing happened mainly because of youself. Do not transfer your mistake to others)。

     第三, 你无权干涉和控制我的私人时间,我一天就8小时工作时间,请你记住中午和晚上下班的时间都是我的私人时间。(Third, You have no right to intervene and control my private time. I work 8 hours one day only. Please remember, lunch time and evening time after work are all my private time)

     第四,从 到EMC的第一天到现在为止,我工作尽职尽责,也加过很多次的班,我也没有任何怨言,但是如果你们要求我加班是为了工作以外的事情,我无法做到。(Forth, since the first day in EMC I worked by now, I work duteously, did many times OT. I have no any complaints. But if you ask me to do OT for something irrelated to work, I can't do it.)

     第五,虽然咱们是上下级的关系,也请你注重一下你说话的语气,这是做人最基本的礼貌问题。(Fifth, although you are my boss, I am your subordinate, pls pay attention on your tone when speaking with me. Being polite is the very basic manner when dealing with people).

     第六,我要在这强调一下,我并没有猜想或者假定什么,因为我没有这个时间也没有这个必要。(Sixth, I have to emphasize, I did not assume or take anything for granted because I have no time and it is not necessary for me.)

Note: It is interesting that the boss wrote in English, the secretary wrote in Chinese. For readers of this blog, I translated Rebecca's Chinese email.
Yingyu Li at 7/27/2009 9:25 AM

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