(c) 2012, mark hehl, all rights reserved the importance of culture when managing international...

(c) 2012, Mark Hehl, all rights reserved(c) 2012, Mark Hehl, all rights reserved

The Importance of Culture The Importance of Culture when Managing when Managing

International ProjectsInternational Projects

Mark HehlMark HehlHehl & AssociatesHehl & Associates

Southbury, CT USASouthbury, CT USA203 982 6231203 982 6231

www.hehlassociates.comwww.hehlassociates.com


AgendaAgenda

The Project Manager and GlobalizationThe Project Manager and Globalization Cultural Mistakes – Disaster Examples Cultural Mistakes – Disaster Examples The Importance of Cultural UnderstandingThe Importance of Cultural Understanding Why are people different?Why are people different? Are you the Are you the Ugly American?Ugly American? Various World CulturesVarious World Cultures Applying Cultural SavvyApplying Cultural Savvy Enjoying the experience while achieving Enjoying the experience while achieving

successsuccess

What Cultures are you dealing What Cultures are you dealing with?with?

ListList


Ignoring Culture Issues -Ignoring Culture Issues -Consequences can be deadly!Consequences can be deadly!

Cultural misunderstandingCultural misunderstanding Directing trafficDirecting traffic


What Problems are you facing?What Problems are you facing?

Relative to cross culture projectsRelative to cross culture projects


International ProjectsInternational Projects

List PositivesList Positives

List Negatives / ChallengesList Negatives / Challenges



GlobalizationGlobalization

Cross Border Activity IncreasingCross Border Activity Increasing• New playersNew players• New culturesNew cultures• Varied perceptionsVaried perceptions• More complicated More complicated • Greater challengeGreater challenge

= Potential for enhanced = Potential for enhanced performance / conflictperformance / conflict


Cultural SensitivityCultural Sensitivity

Critical to SuccessCritical to Success My ExposureMy Exposure

• Growing upGrowing up• AdulthoodAdulthood• Professional SuccessProfessional Success

TimexTimex China China

Lack of Cultural Awareness = Lack of Cultural Awareness = Paying a Higher PricePaying a Higher Price

Asian customer – Chinese SupplierAsian customer – Chinese Supplier No understanding or engagement No understanding or engagement

of Chinese cultureof Chinese culture World recession – late 2008World recession – late 2008 Material prices dropped Material prices dropped

significantlysignificantly Refusal to lower kit priceRefusal to lower kit price Reason – Cultural DifficultiesReason – Cultural Difficulties



Cultural SavvyCultural Savvy

Aids CommunicationAids Communication Establishes Immediate RapportEstablishes Immediate Rapport Enhances Team Motivation / Buy-inEnhances Team Motivation / Buy-in Builds Positive RelationshipsBuilds Positive Relationships Enables CooperationEnables Cooperation Postures the PM for SuccessPostures the PM for Success

Which is more accurate -Which is more accurate - in most cases? in most cases?

The average American knows more The average American knows more about the other culture that he/she is about the other culture that he/she is dealing with or is the opposite true?dealing with or is the opposite true?

Why?Why?



TestimonialTestimonial

““I would definitely recommend Mark for I would definitely recommend Mark for future projects. At the beginning of this future projects. At the beginning of this project, I thought that his work plan was project, I thought that his work plan was impossible within our required timeframe. impossible within our required timeframe. However, he proved me wrong. He has However, he proved me wrong. He has phenomenal cross cultural skills and phenomenal cross cultural skills and patience in developing the relationships patience in developing the relationships which are required to get people to go the which are required to get people to go the extra mile and exceed expectations.” extra mile and exceed expectations.”

Unnecessary Confusion = Slow Unnecessary Confusion = Slow ProgressProgress

E Mail CommunicationE Mail Communication• No phone follow upNo phone follow up

““I told you very clearly”I told you very clearly” Not verifying understanding and Not verifying understanding and

assuming actionassuming action Duplicate requestsDuplicate requests Overly demandingOverly demanding Intellectual Property (IP) ConcernIntellectual Property (IP) Concern


Not the best Cultural Reaction Not the best Cultural Reaction

Family story exampleFamily story example

Concluded that something different Concluded that something different was wrongwas wrong



On CultureOn Culture

“ “It is not right or It is not right or wrong, good or bad,wrong, good or bad,

it is just different”it is just different”

Mark HehlMark Hehl - - March, 1996March, 1996

American CultureAmerican Culture

Positive aspectsPositive aspects

Negative aspectsNegative aspects



North AmericanNorth American

LegalLegal• The contract governs; not what is said / The contract governs; not what is said /

promisedpromised

Poor at negotiationPoor at negotiation Direct Direct



Not warm and friendly at the Not warm and friendly at the beginningbeginning

Will not joke at the beginningWill not joke at the beginning Asks direct questionsAsks direct questions InsularInsular Values hard workValues hard work

• Impatient with those who do notImpatient with those who do not



Prompt and responsivePrompt and responsive• Expects the same from othersExpects the same from others

““Time is Money”Time is Money”• They really believe this!They really believe this!• AdvantageAdvantage• Restaurant bill exampleRestaurant bill example

Wants to get down to business fast!Wants to get down to business fast!


One languageOne language Not interested in learning languagesNot interested in learning languages StraightforwardStraightforward Challenges authorityChallenges authority Assertive and forcefulAssertive and forceful


Obsolete ComponentsObsolete Components

Asian Division – US Fortune 500 Asian Division – US Fortune 500 Poor Performing ComponentsPoor Performing Components Multiple requests for Inventory Multiple requests for Inventory

BalanceBalance• No responseNo response

(c) 2010 Mark Hehl, all rights reserved(c) 2010 Mark Hehl, all rights reserved

Chinese CultureChinese Culture




Chinese HistoryChinese History

Oldest continuous major world Oldest continuous major world civilizationcivilization

Records date back 3,500-5,000 yearsRecords date back 3,500-5,000 years Advanced civilization with a common Advanced civilization with a common

written languagewritten language Prosperity diminished during the 19th Prosperity diminished during the 19th

CenturyCentury• Social strifeSocial strife• Economic StagnationEconomic Stagnation• Explosive population growthExplosive population growth

Chinese HistoryChinese History

Western penetrationWestern penetration• Hong Kong (Great Britain)Hong Kong (Great Britain)• Opium WarsOpium Wars• The unequal treatiesThe unequal treaties• Shanghai ConcessionsShanghai Concessions• Communist GovernmentCommunist Government• Hong Kong and Macau returned to Hong Kong and Macau returned to

ChinaChina• China is now a World Power!China is now a World Power!

Chinese Gifts to the WorldChinese Gifts to the World GunpowderGunpowder FireworksFireworks The compassThe compass PaperPaper Natural gas used as a fuelNatural gas used as a fuel The seismographThe seismograph Contributions to science/mathematicsContributions to science/mathematics Second most popular cuisine in the worldSecond most popular cuisine in the world The graduate collegeThe graduate college The formal educational evaluation systemThe formal educational evaluation system


EducationEducation• Written language memorized Written language memorized • Entry competitive-examEntry competitive-exam• High social pressure to excelHigh social pressure to excel• High motivation to learn EnglishHigh motivation to learn English

Native English Speaking TeachersNative English Speaking Teachers• China graduates 6X as many China graduates 6X as many

engineers as the USAengineers as the USA

LanguagesLanguages

Many spoken languagesMany spoken languages Mandarin-OfficialMandarin-Official Cantonese-Hong Kong & MacauCantonese-Hong Kong & Macau Shanghaiese-ShanghaiShanghaiese-Shanghai Common written language?Common written language?

• Traditional CharactersTraditional Characters Hong Kong, Macau, Singapore & TaiwanHong Kong, Macau, Singapore & Taiwan

• Simplified charactersSimplified characters• Western (Arabic) number systemWestern (Arabic) number system

Confucian Precepts / ValuesConfucian Precepts / Values DignityDignity Mutual respectMutual respect Respect for authorityRespect for authority

• ObedienceObedience HumilityHumility CourtesyCourtesy DeferenceDeference

• FaceFace• MianziMianzi

Mianzi (Face)Mianzi (Face)

ShameShame StatusStatus Self respectSelf respect AvoidAvoid

• InsultsInsults• CriticismCriticism• EmbarrassingEmbarrassing• ShoutingShouting• Proving wrongProving wrong

GuanxiGuanxi

Relationships between peopleRelationships between people Good social relationships are a symbol of Good social relationships are a symbol of

personal abilitypersonal ability Develop relationships firstDevelop relationships first Enquire about family and personal lifeEnquire about family and personal life

• Expect personal questionsExpect personal questions SalarySalary

Invest in this up frontInvest in this up front• It will pay dividendsIt will pay dividends


ChinaChina

DignityDignity• FaceFace• ““Mianzi”Mianzi”

Mutual respectMutual respect Respect for authorityRespect for authority

• ObedienceObedience HumilityHumility CourtesyCourtesy


ChinaChina

ConsiderateConsiderate Polite Polite Well-manneredWell-mannered ModestyModesty Do not show emotionDo not show emotion Will not use “Will not use “NoNo”” Decisions come from the topDecisions come from the top

What does YES mean?What does YES mean?

I hear youI hear you It may not meanIt may not mean

• AgreementAgreement• UnderstandingUnderstanding• That action will take placeThat action will take place

How does one handle this?How does one handle this?



ChinaChina

Develop relationships firstDevelop relationships first• ““Guanzhi”Guanzhi”• Chinese do not like to do business with Chinese do not like to do business with

strangersstrangers Enquire about family and personal lifeEnquire about family and personal life

• Expect personal questionsExpect personal questions Invest in relationshipsInvest in relationships

• It will pay dividendsIt will pay dividends

KegiKegi

ConsiderateConsiderate Polite Polite Well-manneredWell-mannered HumblenessHumbleness ModestyModesty Do not show emotionDo not show emotion

Using KegiUsing Kegi

Avoid Avoid • BraggingBragging• EmbracingEmbracing• Being too carefreeBeing too carefree• Political discussions to avoidPolitical discussions to avoid

The Province of TaiwanThe Province of Taiwan One Child PolicyOne Child Policy Social unrestSocial unrest The EnvironmentThe Environment

Yes & No???Yes & No???

NO = hostile/disrespectfulNO = hostile/disrespectful• One may not hear itOne may not hear it

Yes may not mean agreementYes may not mean agreement• UnderstandingUnderstanding• That message was heardThat message was heard• ProbeProbe• Read between the linesRead between the lines


What problems does the Chinese What problems does the Chinese respect for authority and not saying respect for authority and not saying “NO” create for Westerners trying to “NO” create for Westerners trying to implement business process implement business process improvement?improvement?

How does one overcome these?How does one overcome these?

The First MeetingThe First Meeting

-Introductions-Introductions

-Name cards-Name cards

-Personal distance-Personal distance


Avoid These!Avoid These! Western gestures that are taboo in China Western gestures that are taboo in China

include: include: • Pointing the index finger--use the open Pointing the index finger--use the open

hand insteadhand instead• Using the index finger to call someone-Using the index finger to call someone-

use the hand with fingers motioning use the hand with fingers motioning downward as in wavingdownward as in waving

• Finger snapping Finger snapping • Showing the soles of shoesShowing the soles of shoes• Whistling is considered rude Whistling is considered rude

Expect These!Expect These! Chinese customs that are annoying to Chinese customs that are annoying to

Westerners: Westerners: • Belching or spitting on the street Belching or spitting on the street • Lack of consideration when smoking Lack of consideration when smoking

and failure to ask permission to smoke and failure to ask permission to smoke • Slurping food Slurping food • Talking while eatingTalking while eating• Spitting out bones while eatingSpitting out bones while eating• ToothpickToothpick


Multi-lingualMulti-lingual Will not challenge authorityWill not challenge authority Seeks friendshipSeeks friendship Knows Western cultureKnows Western culture Limited resourcesLimited resources HumbleHumble

MandarinMandarin

Basic termsBasic terms• Ni Hao--Hello, Good Day, How are Ni Hao--Hello, Good Day, How are

you?you?• Xie Xie--Thank YouXie Xie--Thank You• Gahn Bay-- “Dry Cup” Toast at Gahn Bay-- “Dry Cup” Toast at

mealsmeals Do not drink alone Do not drink alone Be careful!Be careful!

Meals / BanquetsMeals / Banquets

ChopsticksChopsticks Wait for host to seat youWait for host to seat you

• Seat position at tableSeat position at table Never leave your plate clean!Never leave your plate clean! Leave room for the next courseLeave room for the next course Toasting-no need to “Dry Cup”Toasting-no need to “Dry Cup”

• Drink slowlyDrink slowly Good opportunity to introduce/discuss Good opportunity to introduce/discuss

new initiativesnew initiatives

China - Other ItemsChina - Other Items

Red = Good LuckRed = Good Luck The Green Hat StoryThe Green Hat Story Covering one’s face = embarrassment Covering one’s face = embarrassment

or disagreementor disagreement Sticking chopsticks in rice = DeathSticking chopsticks in rice = Death If you do not know what a food is -ASK!If you do not know what a food is -ASK! Unless you can handle the result- do Unless you can handle the result- do

not look in tanks & cages at restaurantsnot look in tanks & cages at restaurants

China - Other ItemsChina - Other Items Birds and fish are served with the headBirds and fish are served with the head Ok to do in ChinaOk to do in China

• Using a toothpick at the tableUsing a toothpick at the table• Spitting bones on a plateSpitting bones on a plate• Making noises while eatingMaking noises while eating• Putting one’s elbows on tablePutting one’s elbows on table• Reaching across the table for foodReaching across the table for food• Smoking during a mealSmoking during a meal• Picking up a bowl of rice to one’s Picking up a bowl of rice to one’s

mouthmouth

Potential Problem AreasPotential Problem Areas

ChinaChina


Modified Behaviors Modified Behaviors

ChinaChina


Protecting a Bad DesignProtecting a Bad Design

Western Parent Company / Asia Western Parent Company / Asia DivisionDivision

Design not Working ProperlyDesign not Working Properly Re-Design in EuropeRe-Design in Europe

• Intentionally providing incorrect detailsIntentionally providing incorrect details Intellectual Property (IP) IssueIntellectual Property (IP) Issue Lost Sales / Customer GoodwillLost Sales / Customer Goodwill


Indian CultureIndian Culture




Indian Head ShakingIndian Head Shaking

AgreementAgreement• Source of confusionSource of confusion

Project Manager Project Manager

––Faux Pas!Faux Pas!



IndiaIndia

Caste SystemCaste System Be on timeBe on time Slow decisionsSlow decisions Family orientationFamily orientation The boss is rightThe boss is right Relationship valueRelationship value


IndiaIndia

WomenWomen• Shaking Hands???Shaking Hands???

Head ShakingHead Shaking Develop TrustDevelop Trust Accept refreshmentsAccept refreshments Double Standard???Double Standard???

• On timeOn time


IndiaIndia


Modified Behavior Modified Behavior

IndiaIndia


Missed Opportunity for Cost Missed Opportunity for Cost Savings / Sales IncreaseSavings / Sales Increase

Latin American Supplier to a Fortune Latin American Supplier to a Fortune 100 Corporation100 Corporation

Opportunities identified / Opportunities identified / demonstrateddemonstrated• 23% productivity improvement23% productivity improvement• Not implementedNot implemented

No follow up to ensure No follow up to ensure implementationimplementation


Lost InvestmentLost Investment

Potential New Asian SupplierPotential New Asian Supplier Site visit scheduled for a FridaySite visit scheduled for a Friday Government BlackoutGovernment Blackout Supplier Unwilling to Challenge Supplier Unwilling to Challenge

Fortune 100 CorporationFortune 100 Corporation Project CancelledProject Cancelled

• Investment wastedInvestment wasted


Process Improvement?Process Improvement?

Asian supplier to a US Fortune 500 Asian supplier to a US Fortune 500 Enhanced process controls neededEnhanced process controls needed Performed for the wrong reasonPerformed for the wrong reason

• IneffectiveIneffective


Time Reduction = Lost SalesTime Reduction = Lost Sales

US Corporation US Corporation – – Chinese SuppliersChinese Suppliers

- Assembly plant in The Philippines- Assembly plant in The Philippines Arbitrary lead time reductionArbitrary lead time reduction Delivery not possibleDelivery not possible Silence from suppliersSilence from suppliers $15 million in lost sales$15 million in lost sales


The PhilippinesThe Philippines

Foreign InfluenceForeign Influence• ChinaChina• SpainSpain• The United StatesThe United States



Positive aspects of the culturePositive aspects of the culture

Negative aspects of the cultureNegative aspects of the culture




WarmWarm FriendlyFriendly Laid backLaid back Positive outlookPositive outlook

• Good during a crisisGood during a crisis• Prevention?Prevention?

Eager to please foreignersEager to please foreigners


Non AssertiveNon Assertive Eager to learnEager to learn Reluctant to use “No”Reluctant to use “No” Inferiority complexInferiority complex Sometimes provides too much Sometimes provides too much

informationinformation• May not be relevantMay not be relevant• Too much detailToo much detail


Modified BehaviorModified Behavior



Latin AmericaLatin America

Is the culture the same in all of Latin Is the culture the same in all of Latin America?America?

Is the language the same?Is the language the same?



20 Spanish Speaking Countries20 Spanish Speaking Countries• Various dialectsVarious dialects• Some words can be offensive is some Some words can be offensive is some

countries where they are not in otherscountries where they are not in others

The Language of Brazil is Portuguese The Language of Brazil is Portuguese




Regionally DiverseRegionally Diverse•Not all the same!Not all the same!

Warm/FriendlyWarm/Friendly• Begin with social conversationBegin with social conversation

TactileTactile• ““Abrazo”Abrazo”• Personal spacePersonal space

Time AttitudeTime Attitude



FormalityFormality• Señor , Ing., Lic., etc.Señor , Ing., Lic., etc.• SpokenSpoken• WrittenWritten• Avoid using first names at the beginningAvoid using first names at the beginning


Meet with Decision MakerMeet with Decision Maker• Authority may not be delagatedAuthority may not be delagated

Avoid pressure tacticsAvoid pressure tactics Relationship OrientationRelationship Orientation Social Conversation FirstSocial Conversation First

• Ask about familyAsk about family• Remember detailsRemember details


No Action - No ProductNo Action - No Product

US Importer – South American US Importer – South American SupplierSupplier

Agreement from PurchasingAgreement from Purchasing• No ActionNo Action

Communicate with Boss for actionCommunicate with Boss for action• Autocratic environment Autocratic environment


Quotation ProblemsQuotation Problems


Latin AmericaLatin America Oral indicationOral indication Quotes not receivedQuotes not received IssuesIssues

• CultureCulture• UnderstandingUnderstanding• CompetencyCompetency• Unwilling to say “NO”Unwilling to say “NO”

Regulatory InformationRegulatory Information

US Fortune 100 CorporationUS Fortune 100 Corporation Asian Plastic SupplierAsian Plastic Supplier Material Data RequiredMaterial Data Required No ResponseNo Response

• CommunicationCommunication• IP ConcernIP Concern

Additional Travel CostAdditional Travel Cost• Schedule impactSchedule impact


Vague Direction from EuropeVague Direction from Europe

My ClientMy Client Questions not answered directlyQuestions not answered directly Read between the linesRead between the lines


Communication tipsCommunication tips

Use clear elegant languageUse clear elegant language Verify understandingVerify understanding

• Follow up callFollow up call AvoidAvoid

• JargonJargon• ColloquialismsColloquialisms


MY PlanMY Plan

How I will avoid being the Ugly How I will avoid being the Ugly AmericanAmerican1)1)

2)2)

3)3)

4)4)

5)5)


Other ItemsOther Items

Stop, Look and ListenStop, Look and Listen Ask questionsAsk questions

• HistoryHistory• Local AreaLocal Area

Avoid pointing one’s finger Avoid pointing one’s finger • Use an open handUse an open hand


Applying Cultural SavvyApplying Cultural Savvy

Avoid StereotypingAvoid Stereotyping Be Genuinely InterestedBe Genuinely Interested

• CultureCulture• HistoryHistory• Enjoy the ExperienceEnjoy the Experience

Stop, Look & ListenStop, Look & Listen


Applying Cultural SavvyApplying Cultural Savvy

Research & LearnResearch & Learn• CultureCulture• HistoryHistory• Language BasicsLanguage Basics

Ask QuestionsAsk Questions Communicate their wayCommunicate their way Show RespectShow Respect


Best InvestmentBest Investment

Cross Cultural TrainingCross Cultural Training

All Team MembersAll Team Members

Both DirectionsBoth Directions

A Critical Investment!A Critical Investment!


QuestionsQuestions

Thank you for allowing Thank you for allowing me to be of service!me to be of service!

Mark HehlMark HehlHehl & AssociatesHehl & Associates

Southbury, CT USASouthbury, CT USA

203 982 6231203 982 6231

ww.hehlassociates.comww.hehlassociates.com

(c) 2012, mark hehl, all rights reserved the importance of culture when managing international...

Documents

rights reserved slide

success slide

list list c

rights reserved agenda

cross culture projects

traffic c

importance of culture

cultural sensitivity