communication of american companies in europe - student paper
TRANSCRIPT
Hogeschool-Universiteit Brussel
Campus Stormstraat – Stormstraat 2– 1000 Brussel
Faculteit Taal & Letteren
Studiegebied toegepaste taalkunde of taal- en letterkunde
Bachelor in de toegepaste taalkunde
Bachelor in de taal- en letterkunde
Master in het vertalen
Master in het tolken
Master in de meertalige communicatie
Master in de journalistiek
Communication of American companies in Europe
Masterproef aangeboden door
xxx
tot het behalen van de graad van
Master in de Meertalige Communicatie
Academiejaar 2008 – 2009
TABLE OF CONTENTS
1 INTRODUCTION ............................................................................................................. 5
2 THE IMPORTANCE OF EFFECTIVE COMMUNICATION .................................... 7
3 MANAGEMENT THEORIES AND COMMUNICATION .......................................... 9
4 MULTICULTURAL MANAGEMENT THEORIES .................................................. 12
4.1 Marginality, ethnocentrism and parochialism ........................................................................... 12
4.2 Etic versus Emic............................................................................................................................ 13
4.3 Methodological problems ............................................................................................................. 15
4.4 A typology of international studies.............................................................................................. 16
5 A CASE STUDY: AN AMERICAN MULTINATIONAL .......................................... 19
5.1 The communication system of a multinational .......................................................................... 19
5.2 Cross-cultural cooperation .......................................................................................................... 20
5.3 The organizational structure & communication ........................................................................ 23
5.4 Lean Thinking ............................................................................................................................... 25
5.5 Lean Six Sigma ............................................................................................................................. 27
5.6 AIP A3 counter measure .............................................................................................................. 31
6 TRANSFER OF KOSS ................................................................................................... 33
6.1 The Kaizen event .......................................................................................................................... 34
6.2 Research framework .................................................................................................................... 37
6.3 Kaizen and Cultural constraints ................................................................................................. 40
6.4 Cultural constraints at national level .......................................................................................... 41
6.5 Conclusion on national values ..................................................................................................... 44
6.6 Cultural constraints at the organizational level ......................................................................... 45
6.7 Conclusion and relevance of the framework .............................................................................. 47
7 EXTERNAL COMMUNICATION ............................................................................... 52
7.1 Who is the customer? ................................................................................................................... 52
7.2 Decision Making Unit ................................................................................................................... 55
7.3 Customer Management ................................................................................................................ 57
7.4 Determining the target group ...................................................................................................... 57
7.5 Segmentation ................................................................................................................................. 59
8 A CUSTOMER-ORIENTED APPROACH: A PILOT PROJECT ............................ 60
8.1 Customer satisfaction ................................................................................................................... 64
8.2 Customer Loyalty ......................................................................................................................... 66
8.3 Customer Loyalty surveys ........................................................................................................... 69
8.4 Concluding remarks ..................................................................................................................... 71
BIBLIOGRAPHY OF WORKS CONSULTED .................................................................. 74
SAMENVATTING: NEDERLANDS ................................................................................... 76
ENCLOSURE 1: TRAINING COURSE EVALUATION FORM .................................... 78
ENCLOSURE 2: MEASURING SERVICE VALUE ......................................................... 79
ENCLOSURE 3: QUESTIONNAIRE COMMUNICATION PATTERNS ..................... 80
ENCLOSURE 4: INTERVIEW ............................................................................................ 85
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1 Introduction
Activities of multinationals have given rise to new concerns over the ways in which
information is communicated to employees of all types. In this paper, I will study one
American multinational and explore its current communication policies and practices within
its Belgian subsidiary.
Every organization has specific goals, which may include making profit and increasing
customer satisfaction. For an organization to achieve these goals, some type of structure and
coordination is required. Whether or not the implementation of a management system
succeeds depends on various factors. For this reason, I will first go back into history and give
an overview of some of the most important management theories addressing different aspects
of communication. I will include theories such as the „scientific management school‟, „the
human relations school‟ and „the systems school‟. These theories still have a large influence
on communication practices in international organizations today (Harris, 1993). Similarly,
other studies are given a great deal of credibility nowadays. They include cultural studies on
‟cross-national comparisons‟, research that focuses on „intercultural interaction‟ and research
with a „multiple cultures perspective‟ (Sackmann, 1997). The context that framed and
encouraged these types of studies will be explained.
In this paper I will also look deeper into the way internationally operating organizations deal
with globalization and cultural differences today. In a case study, I will explore the
organizational structure of one American multinational, Gerber Scientific, Inc. Hereby
specific attention is paid to communication policies and internal communication practices and
means in its Gerber Technology business unit. In a separate section, I will then elaborate on
some of the frameworks that are used by researchers to analyze cultural phenomena within
organizations. In fact, some Japanese management practices are applied within the American
multinational I will be writing about. In this company, „Kaizen‟ is used as a problem-solving
Lean tool. It is a specific methodology that serves as a starting point for making
improvements on the work floor (Recht & Wilderom, 1998). It is often claimed in academic
research that this management practice can be affected by socio-cultural constraints.
Therefore, the question whether Japanese management systems are transferable to a foreign
cultural environment will be discussed.
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In the last chapter I will focus on external communication and more specifically on the
relationship with the customer in the European subsidiary of Gerber Technology in Belgium.
In the past, American technology in many fields had no competition, so foreign buyers had no
choice but to buy American. International trade was unimportant to American business
managers because products sold themselves. (Ruch, 1989; Seyoum, 2006) Today, that is no
longer the case. The US is no longer a superior nation. It seems to have lost its status of secure
economic superiority. As a consequence, it has become very important nowadays for an
international company to know who its customers are and to know which customers it wants
to reach (Thomassen, 2002). Yet, it is not always easy to know what the right approach is for
each customer. Some issues of customer management will therefore be discussed. I will
elaborate on a pilot project that was launched within the American multinational to rework its
external communication. Finally; I will also look deeper into the ways in which customer
satisfaction and customer loyalty are measured within this organization.
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2 The importance of effective communication
Communication is very important for an organization. Still, studying the subject seems to
present a paradox for most individuals (Harris, 1993). Especially verbal communication
seems somehow too obvious to be studied. To some people the need to study communication
even seems a waste of time. If managers would only take an effort to listen to employees
more often, they would be better informed about problems that occur on the work floor. That
seems logical and quite simple. It would allow managers to take serious issues into account
when making important decisions and „all problems would be solved‟. Why would there be
any reason to try and study something that obvious as communication? One could be inclined
to say that it can‟t be that difficult.
Still, the idea that we can put something into a clear message that is understood by all
employees is often no more than an illusion in most companies. In fact, when looking deeper
into the subject, corporate communication turns out to be a complex topic. It is also turns out
to be increasingly important within the organization. When employees are asked which areas
they think are in need of special consideration, they often rank „communication‟ first or
second. „Motivation‟, „teamwork‟ or „planning‟ are the next items in their list (Harris, 1993).
One can easily find examples on the internet that confirm these claims. When asked what
employees find important in their jobs, PriceWaterhouse Coopers distinguishes five basic
dimensions in its survey on „werkgenegenheid‟ of 2002 that was published on the website
www.vacature.com. These dimensions are „social atmosphere‟, „financial rewards‟, „balance
between private life and work‟, „career opportunities‟ and „job content‟. Social atmosphere
entails a cooperative working environment and mentions „good communication among
colleagues‟ as a very important asset for personal development. The survey concludes that
corporate culture can stimulate the positive development of a social network on the work floor
and that it can make employees feel more connected with their organization. Therefore,
employers are encouraged to keep an eye on a positive working environment and to pay
special attention to correct communication.
The „werkgenegenheidsenquête‟ clearly shows that there is a strong interrelationship between
communication and organizations. It is also a good indicator for the amount of attention that
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internal communication deserves within companies nowadays. Due to the global nature of
many issues within organizations, more than ever people realize that an effective
communication process within their company is no longer an option, but a necessity.
Moreover, matters that are important for organizations can also be vital for individual
employees. Proficiency in various communication skills is increasingly considered to be an
essential asset for employees. It is also likely to play a key part in promotion (Conrad, 1990;
Harris, 1993).
But what is communication in a business context? First of all, it must be noted that
„communication‟ as a general notion is not always very clearly defined in literature. The more
one reads about it, the more one comprehends that „all‟ behavior can be communicative,
because people always act and react to certain situations, whether they want to say something
or not. The quote that „one cannot not communicate‟ (Watzlawick, Beavin, & Jackson, 1967)
describes this idea very well. Therefore I think it is important to describe what I mean with
the notion of business communication. I will try to clarify it by means of a definition by
Euske and Roberts (1987). It makes a clear distinction between the concepts of „information‟
and „communication‟:
Information should be considered to be data, whereas communication is a process of transmission where
behavior plays an important part, and during which people share, exchange and construct meaning. In the
broadest sense, communication could therefore be considered as the social glue that unites members, subunits
and organizations in a common cause.
Euske and Roberts, 1987
In view of discussing business communication of American companies in Europe, I agree
with the idea that communication is a process of transmission. The organization can then be
regarded as the system of behavior in which this process takes place. (Harris, 1993)
Now that I have given a general overview of the content of this paper and a short introduction
on the importance of effective business communication, I will broach the first chapter. I will
discuss four important management theories that have been of great influence to the way in
which organizations communicate today.
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3 Management theories and communication
To have a better understanding of the way in which organizations work, I will first clarify
some of the most known management theories. For practical reasons I will distinguish four
major theories here. They each represent a different outlook on the organization. Successively
some aspects of the scientific school, the human relations school, the systems school and the
organizational culture perspective will be discussed. Although I use a chronological overview
here, one should certainly keep in mind that all of these approaches can be mixed and are still
being used in a business context today.
The effects of the industrial revolution have spread throughout Western Europe and the
United States during the 19th century, eventually affecting most of the world.
Industrialization gradually led to the creation of the factory system, which is mainly
responsible for the rise of the modern city. The impact of industrialization on society has been
enormous. Due to its growth, various management theories have seen the daylight. We can
count the principles of scientific management by Frederick Winslow Taylor amongst the most
influential ones. He treated management as a scientific problem. In his work, he emphasized
the importance of job design and efficiency (Taylor, 1911; Harris, 1993).
The purpose of scientific management was to get the work done, to increase productivity and
efficiency. The ultimate goal was to produce as much as possible in the best possible way.
Although some of Taylor‟s ideas are still applied nowadays, some of them used to be rather
unconventional for his time. By observing workers for instance, Taylor came to the
conclusion that they could be more productive if they would be allowed to rest from time to
time during the day. He managed to increase the production goals of the organization by
introducing this new concept. Although this example clearly had a positive impact on the
overall well-being of employees, it must be said that nowadays scientific management is often
considered to be a division of labor that was pushed to a negative extreme. „Taylorism‟ is
often associated with practices in which employees are treated like the extension of a
machine.
Taylor made a clear distinction between „thinking‟ and „doing‟ within the organization and
carried through the maximum division of labor. By splitting up the work into different tasks
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and roles, the overview of the total production process was gradually taken away from the
employees. It became the responsibility of management. Because different tasks were
increasingly concentrated within separate departments, this also led to the need for improved
coordination of all activities within the company. Nevertheless, Taylor viewed
communication as one-sided, vertical and only task-related. It was to be formal, hierarchical,
and planned. In sum, communication was largely restricted to downward communication from
management to workers. This inevitably resulted in breakdowns in communication.
Hierarchal levels were often bypassed and in general, there was too much control on the work
floor (Rogers & Agarwala-Rogers, 1976). Today, similar top-down management techniques
are still very popular in the army.
Criticism did not stay out and soon other opinions saw the daylight. The Hawthorne studies
(Ruch, 1984) in the late 1920s challenged a lot of the ideas behind scientific management, as
they put much more emphasis on the human factor of the working environment. This new
approach was certainly different from the foregoing perceptions of management. In fact, the
Hawthorne studies are often described as a form of „testing‟ that is based on behavioral
psychology. By means of experiments, management tried to increase the productivity of a
team by manipulating their environment conditions, for instance. Some of these tests describe
how behavior of employees can be influenced in a positive way by switching on and off the
light. Similarly, maintaining a clean working environment for employees was said to improve
their productivity. The main conclusion that can be drawn from all these experiments is that
workers often have a strong need to cooperate and to communicate with their colleagues.
Therefore, it is only logic that the mere act of showing people that you think they‟re valuable
for the organization will usually stimulate them to do a better job.
With the Hawthorne studies, the human relations school of management thinking set in.
Managing people in organizations became a priority and the interrelationship between people
was paid much more attention to. Communication became increasingly important within
companies, as it improved employee moral and performance (Ruch, 1984). On the one hand,
there was vertical communication between management and workers. Its purpose was to
satisfy workers‟ needs and to facilitate the participation of members in organizational
decision-making. On the other hand, horizontal communication often stayed limited to peer-
communication. All in all, overall communication structures remained formal. For this reason,
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they were unavoidably supplemented by rumors, which were communicated through an
informal network that is also often called „the grapevine‟.
In the 1960s and 1970s, it became apparent that in certain situations the scientific
management approach worked well. On other occasions, the human relations approach
seemed to work better. Consequently, a new system of thinking emerged. Communication
became a dynamic element in the formation and operation of the organization, and was
increasingly considered to be the cement that holds the units in the organization together
(Harris, 1993). The system school emerged. Relationships of structure were important in this
theory, and communication was recognized as a very important function in the coordination
of the separate parts of that system. Its purpose was to control and to coordinate, to provide
information to decision makers and to adjust the organization to changes. Communication was
not limited to horizontal and downward communication only. It could go in all directions
within the system, including downward and upward across the hierarchical levels of the
company. External communication became also increasingly important. Therefore, it won‟t
surprise that as from the beginning of the 1960s, there has been a mere explosion of material
on organizational communication. Distortion, unresponsiveness to negative feedback and
communication overload were amongst the main problems that caused this evolution.
Many disciplines have contributed to the amount of material that is available on the subject of
communication today. Psychologists, linguists, communication specialists and sociologists
alike have all made their contributions to this relatively new field. Special attention is often
paid to subjects as „informal communication‟, „international communication‟ or „intercultural
communication‟. Cultural integration of employees within multinational companies has also
become increasingly important within the field of communication, as business is increasingly
conducted on an international level. Managers who are working in a multicultural
environment recognize that challenges linked to human resources and diversity in the work
place are often the most difficult to deal with. High competition on a global scale and the need
for competent employees forces them to reconsider their current strategies in order to attract
competent people from different cultural backgrounds. It is not surprising therefore, that
managerial perspectives give a great deal of credibility to cultural studies. Because of its
importance in academic literature today, special attention will be given to them in the
following section.
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4 Multicultural management theories
4.1 Marginality, ethnocentrism and parochialism
People with different cultural backgrounds behave in different ways. If they would only take
their own rules and conventions into account when doing business internationally, this would
create so many problems that it would probably become impossible to communicate. This is
one of the reasons why managerial perspectives give a great deal of credibility to cultural
studies. They have become an important aspect of international business and communication.
Some theories can offer us insights into other cultures and give a different perspective on the
way we communicate. Still, giving a clear overview of some of the main theoretical
approaches in this field is not easy. A great variety of intercultural management studies exist.
In a review on intercultural management studies that has been written between 1977 and 1997
by Clark et al. (2000), the complexity of this field is further clarified. The authors distinguish
three aspects that characterize international studies during this period: marginality,
ethnocentrism and parochialism.
The authors firstly note that the domain of intercultural studies is sometimes considered to be
marginal. In fact, this argument makes sense because intercultural studies are relatively new
compared to the more traditional fields of research. In the 1970s for example, corporate
business changed rapidly and somehow, scientific research in this field was not able to keep
the same pace (Adler, 1983; Sackmann, 1997). Therefore, intercultural studies have often
been criticized of being badly defined, without any consistency, lacking analysis, being only
descriptive and incapable of constructing a solid theory. Some of these problems seem to
persist nowadays. Still, the establishment of new journals and a growth of academic activity
and teaching in the field help to dispel this perception (Clark et al, 2000). Today, the area has
assumed greater significance and research in this area has become a legitimate and valuable
field of inquiry.
Clark et al (2000) go on to say that the ethnocentric paradigm is the second aspect that is
typical for intercultural studies between 1977 and 1997. The authors explain the paradigm by
saying that many Americans often viewed their own management theories as being superior to
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others during this period, at least in the United States they did. This explanation is given as
one of the main reasons why very little advancement could be noted in the field of
anthropology, psychology and organizational behavioral sciences with respect to cultural
studies. Instruments and measures developed in American culture were believed to be equally
applicable in other nations and alternative ways to handle things were simply ignored.
Although European research has tended to have more attention for a mutual respect of
cultures, the ethnocentric view remains dominant in many studies, even today. Nevertheless,
an increase in the number of studies drawing on the expertise of a multicultural team of
researchers has encouraged the development of new conceptions in this field.
Finally, the authors also review a third challenge for multicultural research, which is
parochialism. They mention studies in which Anglo-American scholars have developed
theories and models without looking for alternative perspectives (Adler, 1994; Clark et al,
2000). Despite these findings, the nature of the subject area seems to be very hard to change.
Influential, essentially English-speaking journals keep on defining the nature of the field.
Only a small number of journals have taken action to overcome barriers of parochialism, by
publishing research that takes a more comparative and international perspective (Boyacigiller
and Adler, 1991, p. 279). These journals include Academy of Management Review and the
Journal of Management Studies. Clark et al (2000) confirm that a wider, international
perspective is important. They strongly emphasize the importance of mutual respect of
cultures
4.2 Etic versus Emic
An important debate that should also be mentioned when discussing intercultural studies and
that has been going on for some time is the distinction between Etic and Emic viewpoints.
Etic refers to „culture-common aspects‟ and Emic refers to „culture-specific aspects of
concepts or behavior1‟. Both approaches are considered to be legitimate research orientations.
They were originally developed as contrasting explanations of values formation (Ralston,
1997; Dowling, 1999).
1 The words „Emic‟ and „Etic‟ are borrowed from linguistics: a phonemic system documents meaningful sounds specific to a given language;
a phonetic system organizes all sounds that have meaning in any language (Triandis & Brislin, 1884; Dowling,, 1999)
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The convergence hypothesis is an example of the Etic viewpoint. It started dominating
American and European management research during the 1950s and the 1960s. This
hypothesis suggests that one can use similar structures and technologies in a company,
without looking at cultural boundaries (Dowling, 1999). It is a macro approach that is based
on two key assumptions. The first assumption is that there exist principles of sound
management that can be applied anywhere, without taking the national environment into
consideration. This means that if there are local practices that somehow differ from those that
are said to be the better ones, these local practices have to be changed and adapted. The Etic
approach has been often applied in American management models during the 1950s and
1960s. Researchers assumed universality across cultures. The second assumption is that by
systematically implementing universal management practices, organizations will become
increasingly alike in the future. Given that the United States were the leading industrial
economy at the time the Etic approach was conceived, the point of convergence would
naturally be toward the US model. Some quotes give a good impression of how researchers
thought about the future of other non-American nations. This is an example:
Unless basic rather than trivial or technical changes in the broad philosophy of organization building are
forthcoming, Japan is destined to fall behind in the ranks of modern industrialized nations.
Harbison (1959)
Other research is in favor of the divergence hypothesis. This perspective suggests that nations
can maintain their cultural differences. It is a micro approach that puts emphasis on the
behavior of individuals in a company (Dowling, 1999). Even if subsidiaries and main office
are increasingly alike due to internationalization (idea of convergence), there will always be
cultural differences between individuals of each plant, it is simply unavoidable (idea of
divergence). Thus, the divergence perspective proposes that individuals will retain their own
culturally determined values regardless of their economic ideology, whether this would be the
form of capitalism that is more typical of the American society or the system of socialism,
known in Japan. (Cole 1973, Ralston, 1997)
Ralston (1997) goes further still. He is a proponent of crossvergence as an integrative
alternative. He describes crossvergence as „a melting pot philosophy‟ of values that doesn‟t
really support the divergence or the convergence perspective. Crossvergence is seen as
„something different‟, rather than something „in between‟. It occurs when people unite the
values of their own national culture with the elements that are typical of the dominant
15
ideology of the company they work in. They adapt themselves and in this way, a unique set of
different values is created. He supports a broader definition and claims that the dynamic
interaction between economic ideology (e.g. capitalism or socialism) and national culture2
(East or West) cannot be explained.
4.3 Methodological problems
Practical and methodological problems make improvements in the cultural field rather
difficult. Often, research is criticized because the concept of culture is not adequately defined
(Cavusgil & Das, 1997). Somehow, this does not come as a surprise, because it must be noted
that there does not seem to be any general consensus on the definition of culture in the field.
Another criticism is that research is often oversimplified. Only think of some of the earlier
mentioned ethnocentric ideas that are actually quite common in a lot of papers. Moreover, it
must be said that this type of studies easily becomes outdated and that statistics are often
unreliable. After all, who decides on the number of different cultures that are included in the
samples and who takes a decision on the subjects that should be discussed in them? Not to
speak of the way that research is sometimes conducted: questions are sometimes mistranslated
into other languages, results are manipulated and the way in which data are collected can also
be questionable. (Cavusgil & Das, 1997) (Nasif et al, 1991) Often, it is not sure how
questionnaires were distributed or how much time it took to fill them out during a research
project. Neither does one take the profession of the researcher or the psychological aspects of
the work into consideration. Finally, questions can be raised when looking at the data
analysis. Parametrical and non-parametrical statistics are used and there exist quantitative and
qualitative studies with multiple and unique variables (Nasif et al, 1991). Moreover, the level
of analysis greatly varies from the individual and the organizational to the societal level.
There does not really seem to be any consensus.
All these problems are a good indication of the complexity that comes along with cultural
studies. Several of these problems are still often ignored in research. Therefore, it is important
to develop appropriate research methodology designs and to take the previously mentioned
issues into account.
2 Culture may be viewed as „those beliefs and values that are widely shared in a specific society at a particular point in time.‟ (Ralston et al,
1993)
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4.4 A typology of international studies
In a review on international management studies, Sackmann et al (1997) reveals the
complexity of cultures in organizational settings. The author discusses the work of several
North American and European researchers who have analyzed and developed models that
should allow international organizations to better understand the intercultural differences they
encounter. Three types of studies are identified by Sackmann et al (1997): the first type deals
with „cross-national comparisons‟, the second type focuses on „intercultural interaction‟ and
the third type puts the accent on a „multiple cultures perspective‟. For each stream of research,
the context that framed and encouraged the stream of research is explained. Some
assumptions and frameworks underlying the research methods are also addressed.
During the 1950s and 1960s, cross-cultural management research first arose in the United
Stated. The political context of the time, encouraged by the economic expansion of the United
States, caused the comparative study of management to become of great importance.
Management was viewed as „the single most critical social activity in connection with
economic progress‟ (Farmer & Richman, 1965; Sackmann, 1997). Action had to be taken in
those countries that were seen to be at risk of communism, such as the developing countries of
Asia, Africa or Latin America. Great attention was paid to cross-national differences and
research was undertaken to better understand how to conduct business in and with these
nations. In the 1970s, this trend continues. It led to the development of some management
practices that could be applied in every possible national context. Nowadays, this approach is
often called the cultural convergence hypothesis. There was implicit universalism in a lot of
studies. Researchers would consider managerial attitudes as dependent variables of interest,
whereas culture was only considered to be an independent variable. In fact, a definition of
culture is often lacking in cross-national comparative studies (Sackmann, 1997). The nation
state simply becomes a surrogate for culture, as cultural identity is considered to be a unique
and permanent characteristic of the individual living in this nation. Thus, these studies assume
that cultural boundaries coincide with national frontiers. They contain clear examples of the
previously mentioned methodological problems. Still, it must be noted that some of these
comparative cross-national studies have proved their use. They have somehow contributed to
a better understanding of cultural differences and the impact culture can have on leadership,
work satisfaction or job motivation. Despite its many weaknesses, this kind of research has
17
made it possible for researchers to familiarize themselves more with some typical cultural
characteristics of the United States, letting them realize that American management
techniques are not always easily applied in the rest of the world.
The second type of research puts more emphasis on intercultural interaction within
international companies, without focusing that much on cross-national comparisons anymore
(Sackmann, 1997). Its popularity can mainly be linked to the success of Japanese companies,
as many Americans wanted to understand the link between national culture and the thriving
success of these companies in international trade (Ouchi, 1981). Moreover, multinationals
were also particularly interested in the impact of national culture on successful outcomes
because of their global presence on the market place. Again, from the US perspective, Japan
loomed large. The transfer of Japanese ideologies and organizational practices became
popular. Research about corporate culture and intercultural communication in the work place
increased and there was a shift towards the use of anthropological methodology and a
growing preference for a more interpretative approach (Sackmann, 1997). The company
turned out to be the ideal place to study interaction between people of different nationalities,
and thus organizational culture gradually became a more important issue. One recognized that
new forms of interaction could emerge in an organizational context between individuals of
different nationalities. Among organizational researchers, those concerned with the
phenomenon of organizational culture have gone farthest toward offering clear definitions of
culture. A minimal definition is given below. It could be used as a basis for examining the
implications of culture in organizations:
The core of culture is composed of explicit and tacit assumptions or understandings commonly held by a
group of people; a particular configuration of assumptions and understandings is distinctive to the group;
these assumptions and understandings serve as guides to acceptable and unacceptable perceptions, thoughts,
feelings, and behaviors; they are learned and passed on to new members of the group through social
interaction; and culture is dynamic-it changes over time, although the tacit assumptions that are the core of
culture are most resistant to change.
Sackman et al (1997)3
This intercultural interaction perspective has made culture a visible construct. It shows how
organization processes can be mediated by national culture and it also provides insight into
how individuals can interactively construct shared understandings (Sackmann, 1997). The
3 Adapted from: Kleinberg (1989), Louis (1983), Phillips (1990), Sackmann (1992), Schein (1985)
18
process of culture formation becomes an important issue. As a result of this new perspective,
the organization is increasingly seen as the carrier of a single monolithic culture
(Ouchi, 1981). An organization is said to carry only one specific type of culture.
The third type of international studies focuses on the multiple cultures perspective
(Sackmann, 1997). Researchers in support of this view do not agree with the idea of the
organization as a carrier of one monolithic culture. Instead, they claim that modern
organizations have become more heterogeneous and pluralistic than ever, due to trade
liberalization and an exponential development of information technologies. (Kopper, 1992;
Louis, 1983; Sackmann, 1997). The organization is said not to carry only one specific type of
culture such as a „national culture‟ or an „organizational culture‟, but instead it is embedded in
a pluralistic cultural context (Philips, Goodman & Sackmann, 1992; Sackmann, 1997).
Researchers in favor of this approach claim that one cannot study organizations without
taking into account multiple interactions within a multitude of cultural contexts. By making
this claim, they reinforce the need of a more dynamic approach of cultural interaction in
international studies.
Today, the entire globe has become the market place. Multinational firms acquire or merge
with firms in countries all over the world. These developments bring along culturally diverse
contexts that force us to reconsider some of the previously mentioned assumptions. The
nation state is not longer a boundary for cultural identity. Moreover, the mere distinction
between nations is no longer sufficient in understanding today‟s cross-cultural issues. Neither
can we assume that culture is a permanent identity for the individual. According to Sackmann
et all (1997), in the new global business reality people need to develop an appreciation for
multiple cultures that exist simultaneously, rather than considering cultural differences as a
problem that must be coped with.
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5 A Case study: an American multinational
5.1 The communication system of a multinational
Now that I have given an overview of the most important types of international cultural
studies in the organizational setting, I will look deeper into the way internationally operating
organizations deal with globalization and cultural differences today. Which strategy for
cooperation and communication do they prefer? In this section I will discuss how one
American multinational company communicates in Europe.
Gerber Scientific, Inc. is a worldwide provider of equipment, software, aftermarket materials
and related services in the sign making and specialty graphics, apparel and flexible materials
and ophthalmic lens processing industries4. Its headquarters are located in Connecticut. It is a
large American multinational with both domestic and international operations. The company
distinguishes four business units specialized in three market segments: Gerber Scientific
Products and Spandex constitute the Company's Sign Making and Specialty Graphics
operating segment. Secondly, Gerber Coburn (GC) is the Company's Ophthalmic Lens
Processing operating segment. It provides equipment, supplies and software to the ophthalmic
lens processing industry. Finally, the Company's Apparel and Flexible Materials operating
segment sells its products through the Gerber Technology (GT) business unit.
Gerber Technology‟s headquarters are located in Tolland, but it also has a wide geographical
coverage in Europe and it is present in many other parts of the world, such as China or India.
In this paper, I will focus on the activities of Gerber Technology in Belgium. At GT in
Belgium, both the Spandex and the Gerber Technology business unit are present. This is why
the local service support team assists customers of the sign making and specialty graphics
industry and also provides software and hardware automation systems for the sewn products
and flexible materials industry.
In the first section, specific attention will be given to issues of cross-cultural cooperation
between the US headquarters and Gerber Technology in Belgium. This section will give a
4 Gerber Scientific, Inc is an American multinational quoted on the NYSE. (GRB)
20
good indication of the communication patterns that are used within this international
company. Secondly, the company structure and management tools applied by the American
multinational in its Belgian subsidiary will be further explained. Specific attention will be
given to communication policies and internal communication practices and means. To have a
better overview of the general working methodology within this company, the main principles
of Lean Six Sigma management techniques will be clarified. This working method allows the
company to transform ideas of leadership teams into effective business practices.
Finally, I will focus on Japanese Kaizen-oriented suggestion systems. Recently, Gerber
Scientific has introduced the system of Lean thinking in all of its departments, worldwide.
Lean is a flexible and action-oriented management strategy that can be applied anywhere in
the organization (De Koning, 2008). Lean thinking uses tools such as Kaizen, which requires
a „Gemba attitude‟ that is typical of Japanese cultural environments. The main principles of
this management technique will be explained. In academic papers, intercultural research
frameworks are often used to check whether or not these systems are transferable to non-
Japanese cultural environments (Recht et al, 1998). Many studies suggest that a successful
transfer is possible, but its implementation requires a considerable amount of cultural insight
and careful attention to organizational conditions and labor expectations. The issue of
transferability will be discussed into detail here and the relevance of some of the research
frameworks in today‟s international business environment will also be addressed.
5.2 Cross-cultural cooperation
Closer observation of the communication practices of a multinational is only possible when
taking the international dimensions of a firm into account. In their typology, Heenan &
Perlmutter (1979) distinguish a range of ideal-type strategies that allow for a closer
examination of the ways in which an American multinational communicates with its Belgian
subsidiary. By means of a survey with an American Human Resources Manager5
who works
in the Belgian subsidiary of this multinational, I was able to find out more about the company
organization context, the communication policies and the communication practices. The
survey includes eight questions on the communication system of this multinational. It is based
on a study by Fourboul & Bournois (1999).
5 The current job title of the American Human Resource Manager: Director of Int‟l Compensation and Benefits.
21
Ethnocentrism is one ideal-type strategy for cross cultural cooperation. It refers to a
domination of headquarters over its subsidiaries (Fourboul & Bournois, 1999). When applied,
the „one best way‟ strategy is the parent company‟s prevailing approach. The approach is
typically characterized by the pursuit of unity and efficiency. Until the early 1980s,
effectiveness and efficiency were pre-eminent in management literature. On the one hand,
efficiency compares the input of your own company with the output of the competing
company (Houthoofd, 2000). It can be expressed in labor productivity, for example. On the
other hand, effectiveness compares the output of your own company with the output of the
competition, and this is said to reflect the actions of management (Houthoofd, 2000). Other
features derived from research of American business enterprises became popular in literature
afterwards, and this was largely due to best-selling authors such as Peters and Waterman
(1980), for instance. They introduced cultural characteristics such as „openness‟, „flexibility‟,
„client orientation‟, and „decentralization‟ in management literature (Sackmann, 1997). The
Japanese success then added hallmarks such as „corporate identity‟, „strong culture‟, „long-
term employment‟, „Total Quality Control‟, „teamwork‟, „the learning organization‟, „Lean
production‟, „self-monitoring‟, and „empowerment‟. An increasing mixture of American and
Japanese elements was promising the ultimate success. An early example of this approach
was Ouchi‟s (1981) theory Z, in which management tries to marry individualism and initiative
from the West to „group-think‟ from the East. Efforts were made to familiarize oneself with
the oriental attitude. Training and other management and organizational instruments had to
make this possible throughout the company. Comparable management techniques are still
applied today (Sackmann, 1997). The idea that when effort is made, successful organizational
cultures can be universally applied is still widely spread. In some studies, it is argued that
values and standards of other groups can be imitated. Subsequently, culture can be made.
With the introduction of Lean management in the company a year ago, globalization of the
home-developed model became one of the main targets for the American multinational. For
this reason, it would be easy to let Gerber Scientific fall within a pure ethnocentric type. Yet,
it would not be very realistic to do so, because companies usually apply a mixture of the
communication patterns mentioned above. Although the ethnocentric approach can certainly
be applied to this American multinational, it must be said that Gerber Scientific also
underlines the importance of cultural differences and assumes that organizing differences
should and can occur in harmony. For some issues, a „universal‟ strategy is thought of to be a
necessity, but if one takes the amount of autonomy that is left to subsidiaries into
22
consideration, it becomes clear that labeling this company within the pure ethnocentric type is
not very realistic.
Polycentrism is a different way of looking at strategic communication (Fourboul & Bournois,
1999). This way of cross-cultural cooperation leaves a wide autonomy to the subsidiaries and
can also be applied to some degree to the American multinational. „When in Rome, do as the
Romans do‟ (Harris & Moran, 1987). This is an expression that clearly indicates what is
meant by polycentrism. Upon verification, is becomes clear that the idea of only one universal
strategy is not supported by Gerber Scientific as the only way of communicating
internationally. Diversity is allowed within the company. It is even very much appreciated.
This immediately brings us to the next communication pattern: Regiocentrism. A
regiocentristic approach leaves autonomy to the subsidiary group in a region according to
cultural, geographical and political criteria (Heenan & Perlmutter, 1979) Autonomy is left to
subsidiaries grouped by sub-cultural zones. Although monitoring from above is seen as
relatively important by the company, this way of cross-cultural cooperation is seen as the one
that applies the most to the communication patterns within the American multinational,
according to the HR manager. This means that on the one hand control and regulations are
considered to be very important by the company, but on the other hand this somewhat
ethnocentric way of communicating is also party substituted by the relative autonomy that is
left to local branches. In fact, the multinational has established several written policies on all
types of global issues such as: „the code of conduct‟, „IT policies‟, „insider trading‟ and
„global mobility‟. For practicality, these policies require standardization. On other issues, the
company prefers a more hybrid approach. Regional policies such as the „EU Car Policy‟,
„Travel Policies‟ and purely local policies such as „wellness policies‟ are some examples.
Finally, „geocentrism‟ should still be mentioned as a fourth possible communication strategy
that could be applied by a company (Heenan & Perlmutter, 1979). It describes a network
where the headquarters are just an element. Local autonomy is considered to be a starting
point. Delegation goes in the opposite direction. The results of the survey clearly show,
however, that geocentrism is less applicable to Gerber Scientific.
All the attitudes described above give an indication of the variety of communication strategies
that can be used within an international company. It must be noted that different
23
communication patterns between headquarters and subsidiaries largely depend on the type of
communication, especially when it comes to policy issues. Legal requirements for American
corporations on the New York Stock Exchange require certain procedures and policies to be
implemented globally. In addition, monetary issues should be taken into consideration. Ideally
this multinational would prefer to be more regiocentric and leave more autonomy to
subsidiaries grouped by sub-cultural zones. Although resources have indeed been migrating to
regions, limited budgets and resources prevent this evolution from taking place. It remains an
issue today.
5.3 The organizational structure & communication
Many companies in the United States have undertaken massive strategic changes and
restructuring due to trade liberalization (Seyoum, 2006). Not only did many organizations
introduce new technologies and management systems, but they also invested in new
relationships with suppliers and customers. Organizations nowadays are facing constant
change. Some organizations change their work group design, while others try out new
leadership techniques.
Recently, Gerber Scientific has introduced Lean management techniques to improve its
operational efficiency and effectiveness. For an international company, that includes „quality
improvement‟, „cycle time reduction‟, „productivity improvement‟, „waste reduction‟ and „the
elimination of rework‟ (De Mast, 2006). These are all typical elements of Lean thinking and
they are applied on a global scale by the American multinational, even in the customer service
department of its Belgian subsidiary. By applying Lean techniques in this local department,
the industrialization of services is promoted. It is seen to be beneficial to the cost structure and
to the quality of the service process. Yet, the notion of industrializing services is a
controversial issue. Opponents claim it is impossible to realize. Nevertheless, research
suggests that the industrialization of services should essentially be seen as a conversion of
artisan methods to more efficient, cost effective standardized and streamlined systems for the
delivery of products (Levitt, 1976; Heskett et al., 1997).
24
Without immediately analyzing differences in depth, it is worthwhile to distinguish three
important differences (De Koning et al, 2008) between industrialization in the manufacturing
industry and industrialization of services:
-Products are highly tangible; services and especially the service delivery process are
less so.
-Related to this, production flows are transparent in the industry and less transparent in
services. The same holds for problems and irregularities.
-Finally, the customer is much les involved in the production process in the industry
than in services. Note that the interaction with the customer determines the quality of
the service.
Process performance in services is not usually transparent. Moreover, services are not always
tangible. These facts could be seen as an impediment to apply certain management
techniques. Still, it is done. But in order to make Lean management a success on a global
basis within the company, good communication and management support are essential.
Gerber applies a combination of different management techniques in its Belgian subsidiary. It
continually develops projects to tackle problems and aims to enhance opportunities for
growth. Management tries to create visibility and transparency both in their product flows and
their service flows. To do so, a large arsenal of tools and innovation approaches are used. Of
these, Lean Thinking and Six Sigma are the two programs that are currently popular within
the company. They are both process improvement methodologies. Lean is about speed and
efficiency, whereas Six Sigma is more about precision and accuracy and leads to data-driven
decisions (Womack & Jones, 2006; De Mast, 2006; De Koning et al, 2008). Both rooted in
the 1980s (and earlier). Lean arose as a method to optimize auto manufacturing and Six
Sigma evolved as a quality initiative to reduce variance in the semiconductor industry. First, I
will explain both methodologies into detail. I was allowed an interview with the Service
Performance & Improvement Coordinator in the Belgian subsidiary. This person gave me a
detailed explanation on the company structure, the tools that are applied to achieve the
company‟s goals and the way in which certain issues of communication are addressed.
25
5.4 Lean Thinking
Japanese management techniques emerged from the automobile industry after the Second
World War (Ohno, 1988). Especially Toyota‟s Production System became increasingly
popular. The company‟s huge organizational successes started receiving more and more
attention in the USA and in Western Europe in the 1980s. The management techniques used
by this company were eventually coined „Lean Thinking „in a publication by
Womack et all (1990).
Lean thinking… must start with a conscious attempt to precisely define value in terms of specific products
with specific capabilities offered at specific prices through a dialogue with specific customers.
James Womack et all (1990), The Machine that Changed the World.
Lean is mainly seen as a way to „create value‟ through eliminating „waste‟. „Determining
value‟ is the first step that must always be taken. This activity is considered to be the first
logical step in the Lean management process, because it has to transform the product closer to
what the customer wants. Value-adding activities will increase customer satisfaction and
retention. But what is value and what are the real needs of our customers? To answer this
question, consumption is looked at as a process. Moreover, this process is looked at from the
opposite direction. This activity seems obvious, but in fact it can be far more complicated than
it looks at first sight. To show what is meant and to indicate that this practice can be
misleading in its apparent simplicity, I will give an example of the consumption process of a
client that want to design drawings on a T-shirts and sell them to his local football team. To
do this, he will need to buy software for his industrial printer. In order to get the software, he
will have to take the following steps: „Searching for software‟, „ordering‟, „receiving‟,
„unpacking‟ „installing‟, „maintaining‟, „repairing‟ and „updating‟. These are all steps taken
by the consumer in his consumption process. With a little imagination, far more verbs can be
added to this list. If something goes wrong along the process, a consumer has a negative
experience. A customer who saves time by not having to call twice to order a product is a
typical example of „added value‟. If the company lets this happen „waste‟ is created. Anything
that is not value-adding is defined as „waste‟ and must be eliminated in the consumer process.
In Lean thinking, seven classic wastes are generally distinguished. They are: missed
opportunities, material handling, making defects, delays, over-processing, motion,
overproducing and making inventory (Womack, 2006). An inventory that is too large is a
26
good example of waste. In short, „waste‟ can be any element of production that adds time,
effort, cost but no value.
Schedule: internal processes = value adds.
Value added activities and non value added activities allow for the creation of a „value
stream‟, an end-to-end collection of processes that create value for the customer
(De Koning et al, 2008). The value stream does not only include people, physical facilities,
communication channels and policies and procedures, but it also consists out of a patchwork
of various tools that are gradually developed in the production process, focusing on concrete
problems such as „capacity bottlenecks‟ or „changeover times‟.
Lean is presented as a flexible and action-oriented management strategy that can be applied
anywhere in the organization, including non-manufacturing areas such as administration and
service areas. In this respect, Womack‟s publications are seen as valuable contributions for
management by the Service Performance & Improvement Coordinator in the Belgian
subsidiary of this American multinational. „Do not go for the best, go for the better‟ is an
expression that is used to clarify what Lean management stands for in the service
environment. It means that products are made according to the norms of the client, and that
every employee in the company aims to deliver the quality the client asks for. All processes
must be continuously improved, and Lean management is an ongoing activity to go for the
better (De Mast & Does, 2006).
IInntteerrnnaall PPrroocceesssseess == VVaalluuee AAddddss
Suppliers Customers
Order
Entry HR
Receiving
Manufacturing
Accounting
Shipping
Logistics
Planning
Purchasing
Wants
27
5.5 Lean Six Sigma
Six Sigma was introduced in the 1980s at Motorola. This concept is a culmination of a series
of developments in quality management that started in the early 1930s (Snee, 2004). It has
been building on many principles6. One could best describe Six Sigma as a customer driven
approach with an analytic problem-solving framework (De Mast, 2006).
Six Sigma puts great emphasis on data-based decision-making and makes use of project teams
for problem-solving. It provides an organizational structure of project leaders and project
owners who work on improvement projects. The project leaders are called „Black Belts‟ and
„Green Belts‟. The management representatives are called „Champions‟. The latter play the
role of project owner and are in close relation to the executive management team.
Six Sigma organization structure - De Koning, H. et al (2008)
Both Lean and Six Sigma practices are combined at Gerber Technology, because they have
complimentary strengths. Six Sigma will eliminate defects but it will not address the question
of how to optimize process flow. Lean principles exclude the advanced statistical tools often
required to achieve the process capabilities needed to be truly „Lean‟. Each approach can
result in improvement, while utilizing both methods simultaneously holds the promise of
being able to address all types of process problems with the most appropriate toolkit
6 Principles such as: Taylor‟s scientific management (1911), Shewhart‟s (1931) approach to process control, Deming‟s (1986) management
principles, Juran‟s (1989) system for quality improvement and the Japanese approach to Total Quality Management (Imai, 1986).
Senior management
Master Black Belts Program Managers
Champion
Black Belt
Green Belt - Green
Belt
Champion Champion
Black Belt
Green Belt - Green
Belt
Black Belt
Green Belt - Green
Belt Yellow Belts
28
(De Koning et al, 2008). An integrated program is thought of to combine the best of both. It
provides a useful framework in the service department of the Belgian subsidiary of the
American multinational. Both approaches combined can deal with waste, rework, defects and
unnecessary time consumption. This is what Lean Six Sigma projects do. By means of an
example, one possible project will now be explained.
The launch of a Lean Six Sigma project requires an adapted organizational infrastructure.
Therefore, a deployment plan with clear long-term objectives is developed and led by senior
management. It has two basic components. The first component is the annual planning
process. It gives an outline of specific issues that are in need of long-term improvement,
which are spread out over a period of three years. At this stage, special attention is paid to the
pace of improvement effort that is required to get the work done and the kind of human-
resources support that is needed to achieve the goals that are determined. The second
component is the communication process. It is what the originators call the „catch ball‟
process. The objectives are „deployed down‟ from the corporate strategy.
A goal could be „to improve customer satisfaction‟, for example. Such a goal is then
considered to be a starting point for additional plans that can be developed at the level of the
value-adding work. Project teams work them out by means of the value stream mapping
system that was previously explained. One team usually consists of Black Belts, Green Belts
and Champions known from the Six Sigma organizational structure. They look at the whole
production process and use a stepwise strategy. They diagnose current processes and look
deeper into them, usually in a reversed way, e.g. from shipment to basic materials. When
customers complain about delays in delivery, the team members‟ focus could be on the
duration of a specific action in the delivery process, for example.
In this way, teams try to find out were improvements in the process can be made. When doing
this, they ask themselves how big the possibility is that something could go wrong during the
process and which plans could be realistic and achievable to obtain the company‟s goals.
These plans must be very specific and clear. Problems must be made measurable by means of
Critical-To-Quality (CTQ) characteristics (De Koning et al, 2008). Examples can be found in
the schedule below. If clients complain about long waiting times for instance, something can
be undertaken to improve „throughput times‟. Two templates are included on the next page to
give a better overview.
29
Strategic focal points or Key performance indicators
Project objective 1 Project objective 2
CTQ 1 CTQ 1 CTQ 1 CTQ 1
SUM SUM SUM SUM
constitu
ent
constitu
ent
constitu
ent
constitu
ent
constitu
ent
constitu
ent
constitu
ent
constitu
ent
constitu
ent
constitu
ent
constitu
ent
constitu
ent
Measurements
Layer 1
Layer 2
Layer 3
Layer 4
Layer 5
Template of canonical layers of the CTQ flowdown.De Koning, H. et al (2008)
Revenue
Customer satisfaction
Service quality
External iterations Throughput time Perceived quality
Net waiting
time
Additional
waiting
time
due to
rework
Additional
processing
time due to
rework
Net
processing
time
CTQ CTQ
CTQCTQ
CTQ
CTQ
CTQ flowdown for projects improving revenue by increasing customer satisfaction
Strategic focal
point
Project
objectives
Constituents
De Koning, H. et al (2008)
30
To achieve their goals and to work out CTQ‟s, the DMAIC roadmap is often used. It is a
standard improvement model that includes several Lean tools and that can tackle problems in
five steps: Define (D), Measure (M), Analyze (A), Improve (I) and Control (C).
(De Koning et al, 2008). First, relevant facts are gathered and a baseline study is carried out.
Appropriate means to measure results must also be determined. Hereby, focus should always
be on strategically important issues. End terms are defined as well as a set of techniques that
can be used to achieve them. „Do not eat the elephant‟, is an expression that must therefore
always be kept in mind by team leaders at this stage in the project. Team leaders are
considered to have enough common sense to set goals that are down-to-earth and rational. It
must be noted that sometimes there can be a great deal of discussion on what to measure and
how to measure something. Therefore, it is extremely important to pay attention that one does
not to end up in some kind of a measurement gridlock, were management becomes concerned
that focusing on one measurement will lead to the deterioration of some other measurement.
This is the reason why the use of „common sense‟ when making decisions on how to keep
track of improvements and at what point a „jump of point‟ is determined is of the utmost
importance. In the analyze phase, a thorough diagnosis of the current situation is carried out to
identify the factors that may influence the CTQs. In this phase, statistical tools play a key role.
Unfortunately, statistical programs are not always equally helpful - and even misleading -
when it comes to measuring customer satisfaction (Bhote, 1996). If processes are not carefully
managed, sometimes one fails into take into account the entire value chain or the overall
organizational strategy. Management should therefore not to be misled by a balanced
scoreboard approach although this could be tempting. Sometimes, measuring can take a
considerate amount of time without leading to any actual improvements. Of course, this is
something to be avoided at all costs. In the improvement phase, further adjustments and
improvements can be made. Finally, in the control phase, systems are developed to make the
improvements sustainable. Roadmaps are developed for each of the five phases. They can
guide project leaders through the execution of the improvement projects.
By means of a monthly Strategy Deployment Meeting, different processes and stakeholder
objectives can now be regularly reviewed against the overall improvement plans. These
meetings bring all leadership together to focus on improvement, pulling time away from
„maintenance‟ and putting that leadership time into „improvement‟ and „learning‟ that will
build the firm‟s future (De Koning et al, 2008). During these meetings, team leaders gather to
review stakeholder objectives and managers are closer involved in the process. These
31
managers represent their department and have to explain what their teams have done to
complete the work they had to focus on during the previous month. Processes are reviewed
and adapted where necessary.
Effective communication is an essential component of the organizational success at this stage,
because middle-managers have the difficult task to providing employees with constructive
and useful feedback on these monthly meetings. Sufficient feedback is absolutely essential to
organizational effectiveness, because employees must know where they are and where to go
next in terms of expectations and goals. All employees must be informed, and they have to be
encouraged to make suggestions of their own. The possibility for making suggestions within a
company is made therefore made very explicit. Employees are asked their opinion on a
regular basis and forms in which proposals can be made for possible improvements are made
available. All in all, the best way to make a proposal is of course by telling your manager
what you think about a certain procedure. Your proposals will be treated when they coincide
with long term goals.
5.6 AIP A3 counter measure
If no monthly improvements are made and a project appears to be drifting off, corrective
action must be taken. A-3 thinking is a process of collaborative problem solving that has to
make this possible. It has to foster learning, collaboration, and thoroughness. The amount of
information that is evaluated during monthly meetings can sometimes grow at an exponential
rate. It has to be synthesized in order to make it manageable. This is done by means of Excel
files in A-3 format. The typical A-3 counter measure report makes use of a Define-Measure-
Analyze-Improve-Control (DMAIC) structure that was mentioned earlier. A concrete example
will be worked out here.
AIP counter measures are included in reports that usually exist out of three columns. In the
first column, each problem is identified and properly defined. The way a problem is
described, depends on the issue. Notes can give more information on the place where a
specific problem occurs and it can include more details about the team members that are
involved. Facts and data are given accordingly. If necessary, this section can also contain
charts, pictures or any other information that is required to illustrate the issue. In the second
column, the problem is analyzed and a solution is formulated. The process performance is
32
illustrated too. Often, Pareto charts or bar charts are used to show the contrast between the
actual condition and the target condition for the problem being addressed. In the third column,
an action plan is worked out and the way in which follow-up will be done is clearly stated.
The problem is further analyzed and countermeasures are developed. They clearly state which
actions will be taken, who will perform specific tasks and they also includes a deadline.
Often, an improvement section is added to check if necessary actions have been taken. This
section can also be valuable for follow-up. Finally, a manager has to approve the report. He or
she has to indicate when and by whom a follow-up will be performed to attain a desired
effect. All this relevant information is included in one file and the current status of each issue
is indicated by using colors to create a clear overview. „Green‟ means that a specific problem
has been solved. „Red‟ means that the problem is still ongoing and is currently worked upon.
The file is printed in A-3 format and is sent to management. The information included in the
file allows for control on all the actions that are taken by a department and inform
management about all ongoing issues.
Now that these basic principles have been explained, it will become clear that a transition to
Lean management doesn‟t happen overnight. It is an organization-wide change process. Lean
management techniques are not easily implemented and certain obstacles before becoming
Lean are unavoidable. There will always be resistance to change. Communication on the
implementation of its principles is therefore very important. As a part of the implementation
plan, every executive within the company received a training of two days, whereas all
employees got a core training that took one day. In this way, some of the skepticism about
„sustaining improvement‟ and the „employee-empowered continual improvement culture‟ had
to be overcome. But in fact, there is more to it than just a few barriers. To make Lean
management work, the company has to involve all employees throughout the company. A
Lean organization has to develop highly-engaged, trained and motivated employees who
investigate problems and find solutions as part of their job. Therefore, decision making and
system development should be pushed down to the lowest levels. Empowered teams and
management support are crucial to its success. This is why good communication is essential
for the successful implementation of Lean management, as it requires commitment and
involvement across all levels of the company.
33
6 Transfer of KOSS
The previous chapter gives an overview of the company structure and clarifies the system of
Lean thinking that has recently been introduced in the American multinational worldwide.
Specific attention will now be been given to „Kaizen events‟, a Lean tool that can be applied
to offer important insights to employees. It can be used as a starting point for improvements
on the work floor. In academic literature, implementing Kaizen is often regarded as a partly
transfer of a HRM practice that is normally only typical of Japanese cultural environments.
This is why the extent to which Kaizen can be successfully adapted to an alien environment
has been the object of much debate. It is frequently argued that Japanese management
practices cannot fit into countries outside of Japan (Fukuda, 1988; Iida ,1985; Kono, 1985).
Authors who support this opinion build their explanation on the notion of the socio-cultural
uniqueness of Japanese management and its irreconcilability with the alien environment of
host countries. They strongly object to the transfer of Kaizen practices outside of Japan and
argue that values and traits of Japanese employees are substantially different from values and
traits of foreign employees. Some authors are very categorical. Sorge and Streeck (1988)
argue for instance, that
All attempts to transfer model institutions of industrial relations from one country to another have failed.
Sorge and Streeck (1988)7
In other research, the Japanese model is considered to be a product of Japan‟s group-oriented
society that rests upon a „collectivist orientation‟ (Ishida, 1981). This orientation is said to be
entirely different from the „individualistic orientation‟ of Western democracies. Negative
predictions about transfers are therefore made. Especially the „collectivist orientation‟ and the
„long-term loyalty‟ to one employer are found to be „less transferable‟, whereas „participation
in management‟ is regarded to be more feasible. It is argued that the implementation of
Japanese management practices can be a difficult task, but do it does not necessarily have to
be an insurmountable task (Ishida, 1981).
All these examples clearly show that Japanese development is often seen in more or less
cultural terms. There is much debate on the issue of transferability of Japanese suggestion
7 Quote retrieved from article by Kenney (1995)
34
systems, but opinions often strongly differ as different frameworks are used to explain
differences and / or similarities in HRM practices between firms in Japan and companies in
other parts of the world.
6.1 The Kaizen event
At Gerber Technology, Kaizen has been introduced as a Lean management tool. Whenever
there is a problem that is impossible to solve by means of an A-3 counter measure, a Kaizen
event can be organized. Participants in such an event are considered to be a key to Lean‟s
effectiveness. They form a Kaizen team and have to solve specific issues that occur on the
work floor.
A Kaizen event always takes five days. This is a standard rule within the company. During
this period, solutions are sought for a problem by looking at it like a crime scene
investigation. Team members are usually indicated per business unit to form a team. Such a
team can consist out of members from the finance department, the shipping department and
the customer service department. Its composition largely depends on the type of problem and
participation to an event is not on a voluntary basis. Team members go to the work place
where the problem actually occurs. The actual work place is the place to go for improvement
and is also called „Gemba‟ in business terms. Here, they observe all relevant information
before it is „contaminated‟. Facts are considered in their context and solutions are sought for
each issue. To find solutions, relevant data and facts on the current status of an issue have to
be collected and analyzed. By doing this, insights can be gained. Consequentially, these
insights can be used as a starting point for improvement. The collection, control and analysis
of data are therefore very important. Each time when an issue occurs in current procedures,
participants ask themselves:
Has the issue occurred because a lack of standards?
Have we failed to follow the right existing procedures?
Are the existing procedures ineffective?
Only when standards have been set and procedures are being followed, they can be improved.
Only then, an action plan can be developed in order to achieve the new goals. „Doing‟ means
35
that the plan must be executed and „Control‟ means that one has to keep a close eye on its
correct execution. „Taking action‟ means that the new procedure will be followed. All these
actions are standardized to prevent the original problems from occurring again. Alternatively,
one can set new goals for new possible improvements.
Kaizen events have been transferred from Japanese management. Nevertheless, on closer
consideration the way Kaizen events are implemented as a Lean tool in the United States or in
its Belgian subsidiary is not an exact copy of the original. Imai introduced the term Kaizen in
1986 and defines it as „ongoing improvement involving everyone – top management,
managers and workers‟ (Imai, 1986). In fact, in its original context, Kaizen is neither a
specific tool nor a particular technique but a company philosophy that is based on continuous
improvement of labor processes and personal efficiency. It is based on a philosophy that one
has to make an effort to improve oneself, in private life and at work. Continuous improvement
of work on a daily basis by every member of the company, from the manager to the employee
is a basic idea of Kaizen. It means: „to change for the good of all‟. The accent is on human
effort, moral, communication, training, teamwork, involvement and self-discipline. Although
Kaizen is normally only process-oriented (Imai, 1986), the American approach of Kaizen at
Gerber Technology is different because it is also very much result-oriented. In fact, Kaizen in
this US organization is a mixture of both.
Kaizen is process-oriented in the American multinational in the sense that all its activities are
seen as processes that can be improved, step by step. Every activity is a series of processes,
and every process has a deliverer as well as a client. Products or data that are delivered by
process A (deliverer), can be adjusted or improved in process B and consequentially be sent to
process C. The next process is always to be considered to be a client. This axiom -‟the next
process is the client‟ – distinguishes two kinds of customers: internal customers (within the
company) and external customers (clients in the market). Almost all employees who work in a
company have to deal with internal customers. By considering your colleagues as clients,
employees are made to realize that they always have to make sure to forward correct data, the
right information, good material and working spare parts.., because the next process is
considered to be „a client‟. Every employee in the company has to be aware of this way of
conducting business, only then will the external client receive a product or service of high
quality. If these processes somehow have not been executed correctly, possible errors can be
investigated in a Kaizen event.
36
Kaizen is not only process-oriented at Gerber Technology, but it is result-oriented too. In fact,
the company goals are very much focused on financial results. These results are evaluated
every month. If goals are not achieved, a Kaizen event might be organized to attain them.
Moreover, financial results are communicated to employees worldwide and have to create
intrinsic motivation. Employees can learn more about the company‟s achievements by
participating in Hands-on meetings, for example. By means of video-conferences, financial
results are communicated to employees worldwide. Nevertheless, the most important goals to
be met by the company are said to be „quality, costs and deliveries‟. Of these three goals,
„quality‟ has the highest priority, as it was already mentioned in previous sections. If a
product or service is not of good quality, it is assumed that attractive prices and delivery
conditions can not be effective or result in a competitive advantage. Quality is of utmost
importance and it has to carry away the highest priority, it must be inherent to the product.
In his work „Kaizen: the key to Japan‟s competitive success‟, Imai (1986) argues that the
American style suggestion system differs from the Japanese Kaizen system in more than one
way. The claim that the American system stresses economic benefits rather than morale-
boosting benefits of positive employee participation is one example (Imai, 1986; p. 112).
Upon verification at Gerber Technology8 in Belgium, this argument seems to be correct. First
and for all, Kaizen is considered to be a cost-saving and common sense approach for
improvement by American management. In contrast of what one might think, investments in
expensive techniques of machines are not considered to be a part of Kaizen. Quite on the
contrary, Kaizen is based on „common sense‟. It requires little costs and results in gradual
improvements. Little costs are seen as a great benefit of the system, while there is few risk-
taking involved and because managers can always switch to other methods without causing
huge deficits. Management very much stresses the economic benefits of the system.
Nevertheless, morale-boosting benefits of positive employee participation are not completely
absent within the company. As Kaizen teams are considered to be a key to Lean‟s
effectiveness, non-monetary reward systems are created to thank team members for their
participation in each event, for instance. Participants get positive attention through internal
company publications. In this way, their gained knowledge and investigation is shared by
everyone in the company. This form of internal communication can be of great value to
individual employees and can create intrinsic motivation.
37
Kaizen is considered to be a very practical tool and it involves few risk taking, but still it
should be mentioned that the introduction of clear a management plan is of the utmost
importance if a company wants to implement it as a Lean management technique. If
management wants Kaizen to be a success within the company, it has to prepare an
implementation scheme and demonstrate leadership. Maintenance of effective procedures has
to be envisioned and improvements should be encouraged.
6.2 Research framework
Recent theories have provided us with ideas that increase our notions of intercultural
relationships. Think of quantitative studies by Hofstede (1980), Trompenaars (1993) and the
ethnographic research by d‟Iribarne (1989) and the works of Edward T. Hall. These
frameworks can be used to analyze cultural phenomena. By applying Hofstede‟s culture
dimensions, Recht & Wilderom, (1998) highlight those characteristics of Japanese culture that
play a pivotal role in the success of Kaizen-oriented suggestion systems. I will first discuss
Hofstede‟s theoretical approach and mention its main weaknesses and strengths. Then, I
explain into detail how his model is applied by Recht & Wilderom in his research on the
transferability of Kaizen-oriented suggestion systems. Finally, the relevance of this kind of
research in today‟s business environment will be discussed.
Hofstede‟s work on culture remains important today, for both scholars and practitioners.
Hofstede used to work at IBM, and therefore, he has been able to do a large-scale research on
the cultural differences that exist within IBM subsidiaries all over the world. On the basis of
Clyde Kluckhohn‟s (1951) and Kroeber and Parsons‟s (1958) work, Hofstede (1980a) defined
culture as „the collective programming of the mind‟. He distinguishes members of one human
group from another and tries to describe their cultural differences in averages or tendencies9.
By means of questionnaires, he has gathered a massive amount of IBM data from which he
provided a factor analysis of thirty-two questions in forty countries (Hofstede, 1980).
Strengths of his research are the size of the sample he was able to gather and the attention that
he pays to variables other than national culture. He distinguished four dimensions that could
be called universal. These dimensions are Uncertainty Avoidance: „intolerance for uncertainty
8 Gerber Technology is the Apparel and Flexible Materials business segment of Gerber Scientific, Inc. 9 Important detail: he does not focus on characteristics of individuals.
38
and ambiguity‟, Power Distance: „the extent to which the less powerful members of
organizations and institutions (like the family) expect and accept that power is distributed
equally‟, Individualism versus Collectivism: „the extent to which individuals are integrated
into groups‟ and Masculinity versus Femininity: ‟assertiveness and competitiveness versus
modesty and caring‟ (Hofstede, 1980). They were incorporated into a framework and allow
for specific comment on cultural characteristics for every country included in his research
project. After Hofstede‟s IBM data had been processed and published in 1980, did a
breakthrough in focusing attention on differences in work attitudes between countries occur
(Adler, 1983; Sackmann, 1997). Hofstede concluded that standardized, universal management
methods and central organization forms are not realistic and that cultural differences should
also be taken into account while conducting research. Later on, he further completed this
framework by including a fifth dimension, which is called the „Long versus Short Term
Orientation‟, in which he describes a society‟s time horizon. This dimension was added to the
framework because it allowed for a better understanding of certain cultural values of countries
in the Asian pacific. His ideas are widely accepted and his research is often thought of to be
useful in many business systems, such as training design and conflicts solving.
Hofstede‟s work filled an important vacuum in the field. His work made it possible for cross-
national comparative researchers to use an accessible set of universal dimensions from which
measures of culture could be derived. It must be mentioned, however, that his work has also
received a considerable amount of criticism. It is frequently argued for example, that Hofstede
equals the nation-state („country‟) with culture („societal cultures‟, in this instance). This
argument is further supported by some of Hofstede‟s assertions such as:
Universal categories describe basic problems of humanity with which every society has to cope; and the
variation of country scores along these dimensions shows that different societies do cope with these problems
in different ways.
Hofstede (1980a) – p. 313
As discussed earlier in the typology of Sackmann (1997), the nation state becomes a surrogate
for culture in this case. This can make it very tempting for researchers who are using
Hofstede‟s model to see strong links between his dimensions and aspects of international
organizational behavior, even before empirical testing. Therefore, it is often claimed that
Hofstede‟s framework is simply used as a paradigm „where the questions and the dimensions
are used as taken-for-granted assumptions‟ (Søndergaard, 1994). They are a boon to cross-
39
national comparative researchers who seek to incorporate culture as an invariable into their
work.
Current debates also concentrate on the claim that Hofstede‟s surveys would be inappropriate
instruments to measure culture. The IBM data are considered to be old and obsolete and there
are some issues of methodological nature that are frequently mentioned in this respect
(McSweeney, 2002). The issues of methodological nature are particularly interesting, because
they are often said to be a good reason why some executives find Hofstede‟s model difficult
to apply in an effective way when they want to study cultural differences in cross-border
mergers, for example. Hofstede (1980: 40) clearly states that he is involved in ascribed
properties to societies, and not to individuals. But this very special nature of the IBM study
has confused many who have learned from statistical textbooks that factor analysis should be
done on individual data. They would find it inconceivable or wrong to do it on group level
data (McSweeney, 2002). Hofstede did it because it was central to the main argument of his
theory to demonstrate differences between national groups, not profiles of such groups. He
claims that national culture is carried by all individuals in a nation or a „central tendency. He
then compares these „central tendencies‟ in the answers from each country. Thus, the results
of his surveys are a statistical average based on individuals‟ views. Somehow, this does not
make any sense. Logically speaking, if one assumes that the average tendency of IBM
employee responses are nationally representative, then with equal plausibility on could
assume that the average tendency of another company, the fascist party or the knitting club in
that same country would be nationally representative too (McSweeney, 2002). In fact, there
are simply no valid reasons for assuming that the IBM responses really reflect „the‟ national
average. A single company can‟t provide information about entire national cultures. That is
impossible.
It does not surprise that research using different methods often comes across as more credible.
Philippe d‟Iribarne (1998) has developed a totally different approach to study intercultural
relationships. He tries to take the history of each country into account, which allows for a
better understanding of cultural differences. In fact, his research method is similar to the
anthropologist‟s and focuses more on organizational culture. His conclusions are based on
field studies that have some important advantages compared to Hofstede‟s approach. Field
studies make it possible to take numerous operational aspects of organizations into
consideration and therefore, they are often said to be more credible. In his book „la logique de
40
l‟honneur10
‟ d‟Iribarne analyzes the organization of three subsidiaries of a company located in
France, the United States and in the Netherlands. By spending a large amount of time
observing workers and management styles within these subsidiaries, he concludes that there
are considerable differences between how they are run. He argues that these differences are
due to the cultural differences between the countries involved, since the overall corporate
culture and the production processes in the subsidiaries are similar (Verluyten, 2000). Each
country seems to have its own logic, with its own traditions, and its own way to deal with
power and competition. The French logic is one of honor, the American logic is about
individual profit seeking and the Dutch logic is more about seeking consensus. Every culture
thus requires a different type of management. D‟iribarne (1998) also claims that new forms of
interaction can emerge in an organizational context due to different nationalities or
individuals. Although he criticizes Hofstede‟s work, conclusions of both studies show some
remarkable similarities. That‟s the reason why his work is mentioned here.
Intercultural processes are very complex and there are a lot of changing developments in the
research field (Sackmann, 1997). Still, these studies have contributed to a better
understanding of cultural differences and the impact that culture can have on leadership, work
satisfaction or job motivation.
6.3 Kaizen and Cultural constraints
So far, I have discussed the system of Lean thinking at Gerber Technology and I gave a
description of the way its implementation is perceived in the Belgian subsidiary. Lean
thinking in Kaizen events requires a „Gemba attitude‟ that is normally only typical of
Japanese cultural environments. Recht & Wilderom (1998) have tried to use Hofstede‟s
research framework to study the cultural phenomena that are associated with these Kaizen-
oriented suggestion systems. They claim this management system is transferable to non-
Japanese cultural environments, although its implementation requires a considerable amount
of cultural insight and careful attention to organizational conditions and labor expectations.
With regards to the transferability of Kaizen-oriented suggestion systems, Hofstede‟s
framework allows them to distinguish a number of cultural constraints at national level. In
10 D‟Iribarne, P. (1998). Eer, contract en consensus : management en nationale tradities in Frankrijk, de Verenigde Staten en Nederland.
Amsterdam: Nieuwezijds.
41
addition, their work mentions six organization-culture conditions that are necessary in order to
increase the chances of a successful transfer of Kaizen-oriented suggestion system.
I will now analyze Japan using Hofstede‟s national culture dimensions and highlight those
characteristics of Japanese culture that have played a crucial role in explaining the success of
Kaizen-oriented suggestion systems in this country. When applying these characteristics to
other nations, it is easy to claim that a transfer is doomed to fail. Suggestions in this direction
are made by culturalists such as Fukuda (1988). He claims that Japan‟s socio-cultural heritage
is a „sine qua non‟ for successful implementation. Research by Recht & Wilderom (1998) will
give some counter-arguments in this respect.
6.4 Cultural constraints at national level
Long-term orientation
The most important cultural characteristics responsible for the success of Kaizen events in
Japan can be linked to a couple of values that are derived from Confucian ethic: thrift and
perseverance. On the one side, it is strongly believed that thrift is a value that can lead to a
lowering of costs and the achievement of greater efficiency within a company. Kaizen wants
to achieve exactly this. On the other side, persistence can be defined as „tenacity in the pursuit
of whatever goals‟ (Hofstede, 1991). Both values are characteristics of a long-term orientation
(LTO). In Japan, they are typically combined with a moderate respect for tradition, another
value that is based on Confucian ethic. It is said that a combination of high levels of
perseverance and a moderate respect for tradition makes the Kaizen-oriented suggestion
system‟s work in Japan. This combination of values is said to encourage participation
amongst employees and should make it easier for them to propose changes. Although
Hofstede‟s model indicates that a long term orientation (LTO) is an important trait for
Kaizen-oriented suggestion systems in Japan, other research has shown that Kaizen can also
be implemented in countries with a different mixture of national values. Abo (1995) has
looked further into this matter. His study states that Kaizen-oriented systems can also be
implemented in countries with a low LTO-index (Recht et al, 1998; Abo, 1995).
42
Uncertainty avoidance
A second cultural characteristic that is believed to be responsible for Kaizen‟s success in
Japan is a high level of uncertainty avoidance. According to Hofstede (1980), Japanese
managers have a strong preference for respecting the rules because of their high level of
uncertainty avoidance. They have a tendency to pay more attention to detail and to rely more
on expert knowledge. Moreover, a high level of uncertainty avoidance also allows for
working situations in which even employees are considered to be experts in their field. As a
consequence, these employees are said to be more easily tended to make suggestions to their
managers. The presence of these values in Japan gives way for the idea that Kaizen would be
more easily implemented in their society. In fact, these arguments support the claim that it is
important for management in a foreign country to realize that if Kaizen-oriented suggestion
systems are implemented in their organization, quality rules should be taken seriously. In
addition, it is important for management to foster a sense of individual self-control and high
responsibility amongst working staff. If these issues are taken into account, Kaizen might also
be implemented abroad (Recht et al, 1998).
Moderate Individualism
To make Kaizen suggestion systems work, a strong cohesion in groups is very important.
Japanese society is known to foster collective participation. It doesn‟t come as a surprise
therefore, that loyalty, frankness and trust between employees are seen as very important
values. Japan‟s tendency towards the collectivist side makes it normal for employees to
donate their payments to the group, for example. This is in stark contrast with Western
societies, where this kind of practices would be unthinkable. In the Unites States or in Europe
for example, it is more important to look after yourself on the work floor. With respect to
group formation in Kaizen events, some additional differences between Western and Eastern
company practices can also be mentioned. Group formation is considered to be voluntary in
Japan, in contrast with the mandatory group formation strategies that are often applied in the
US, for instance. One could therefore doubt its effectiveness in the US. Will Kaizen events
still succeed if people are obliged to take part in them? Although one could question the
importance of individualist values, they do not seem to be a barrier for a transfer. In this
respect, reference can be made to the work of Cox et al (1991). This research indicates that
the presence of employees with a more collectivist orientation within an individualistic setting
43
can sometimes be a solution for certain companies. Hiring this kind of employees could help
making a more cooperative approach work within a company (Cox et al, 1991; Recht et al
1998).
Moderate power distance
In Hofstedian terminology a harsh regime of discipline and control is associated with a High
Power Distance Index (high PDI). It is said to be incompatible with Kaizen. A high PDI is
impossible for the simple reason that employees in a Kaizen-oriented suggestion system
should be empowered employees. They should have the possibility to discuss issues with their
managers. Moreover, it is also important that managers show respect to all employees,
including those at production level. A company should therefore be able to invert its
hierarchical order. In Japan, this seems to be possible in some companies11
. Japan has a
medium level power distance. On the one hand, subordinates respect their superiors on the
work floor but on the other hand, subordinates also get equal respect from their superiors.
They get the opportunity to give their opinion and they are valued for their work and effort.
Recht et al (1998) note however, that a moderate power distance is not an absolute necessity
for a successful transfer. They mention the research of Humphrey (1995) in this respect. This
work makes reference to examples of successful transfers to high PDI environments like
Brazil. According to this research, the PDI level does not need to be an insurmountable barrier
if management makes the necessary changes in its policy.
Strong masculinity
According to data collected by Hofstede (1991), Japan has the highest masculinity index. This
means that in Japanese society, people tend towards the idea that they „live to work‟. Recht et
al (1998) ask the question whether this automatically means that Kaizen-oriented suggestion
systems could not function in a country such as the Netherlands, for example. People in this
country are believed to have a tendency for the exact opposite. Often, they are more inclined
to support the idea that one has to „work to live‟. The authors answer their question by
suggesting that it is not necessarily so, while the „feminine way‟ which is strongly present in
the Netherlands, stresses other values that are equally important and might even outweigh a
11 Important remark: the „Japanese model‟ is not present everywhere in its homeland. Not all companies indulge in this view (Recht et al,
1998), p. 13.
44
lower performance orientation. A feminine work-orientation stresses equality and solidarity
and also values group decisions, these three elements being very important to the Kaizen-
oriented suggestion system.
Values of Hofstede’s dimensions
Country LTO UAI PDI IDV MAS
Australia 31 51 36 90 61
Brazil 65 76 69 38 49
France N.A. 86 68 71 43
Germany 31 65 35 67 66
Hong Kong 96 2 68 25 57
Japan 80 92 54 46 95
Korea (S) 75 85 60 18 39
Netherlands 44 53 38 80 14
Singapore 48 8 74 20 48
Sweden 33 29 31 71 5
Taiwan 87 69 58 17 45
UK 25 35 35 89 66
USA 29 46 40 91 62
Source: Hofstede (1991)
6.5 Conclusion on national values
By using the Hofstedian model, a strong linkage between Japanese values and the success of
Kaizen in Japan can be found. For this reason, one could easily believe that all transfer is
doomed to fail. Yet, Recht et al (1998) conclude that confrontation with foreign nations does
not necessarily mean a failure of Japanese suggestion systems. In the above overview, I have
given some of their arguments and references to other research. Far more importantly, Recht
et al (1998) also admit that there is no real proof for some of the suggestions that were
previously made. They confirm that most research done by culturalists somehow fails to
prove how national value differences can impose limitations upon the transfer of Kaizen
techniques. In this respect they make the following statement:
Culturalists have failed, [however] to demonstrate clearly how the value differences impose limitations upon
the transfer of Kaizen techniques.
Dedoussis (1995; p. 735); (Recht et al (1998).
Recht et al (1998) state that it would be a mistake to claim that national values can make a
successful transfer of Kaizen in other countries impossible. In this respect, they mention some
examples of successful implementations abroad, e.g. Humphrey (1995). They conclude that
45
national values do not seem to be an insurmountable barrier to the transferability of Kaizen-
oriented suggestion systems.
Next to elements of national culture, Recht et al (1998) also focus on the organizational
culture. By means of Hofstede‟s six organization-culture dimensions, they distinguish some
organizational-culture conditions that foster the implementation of Japanese suggestion
systems. These include a „clear employee orientation‟, „long-term viability‟, „free flow of
information‟ that has to be vertical as well as horizontal, „empowered employees‟ who receive
enough information and have the skills needed to make decisions, a „pragmatic orientation‟,
and both „process and result oriented employees‟. It is argued that these conditions are far
more important for a successful transfer. They will be discussed next.
6.6 Cultural constraints at the organizational level
Employee orientation or job orientation
Within an organization, certain conditions should be present to make Kaizen-oriented
suggestion systems work. A strong employee orientation is regarded to be very important in
this respect. It means that there should be mutual commitment and trust between employees
and management. A kind of family spirit amongst employees should therefore be fostered.
Ensuring a long term job security could create a sense of belonging, employee commitment
and loyalty. In many Western companies, however, employees do not know how long they
will be able to keep their jobs. They are often regarded as a variable cost to be hired or fired
according to the level of economic activity. This will not facilitate the interchange of
knowledge and experience without restrictions amongst employees.
Professional orientation or parochial orientation
Employees with a professional orientation are of the opinion that their work identity depends
on the type of job they do. This is the reason why, in general, they are often not very
committed to their employer. It will not come as a surprise that job hopping is not appreciated
by Japanese companies who want to implement their suggestion systems in overseas
subsidiaries, for example. They prefer to work with people who have a different mentality.
46
Employees with a more parochial orientation are much more appreciated, because their work
identity depends on the organization they work for. This is one of the reasons why seniority
wages and security of tenure can be very important to make the system work. It will make
employees less likely to change jobs. Loyalty to the employer is an essential condition to
make Kaizen a success.
Open or closed systems
Kaizen-oriented suggestion systems cannot bear fruit if effective communication is lacking. It
is therefore absolutely necessary that the organization supports an open and unrestricted flow
of information on vertical and horizontal axes. Unfortunately, social distance is something
typical of western societies and therefore, it unavoidably also finds its way to the work floor.
In Western society, some of these attitudes are already present in primary school. How many
times haven‟t we heard people claim that students with a theoretical background are „better‟
than students with a more practical background? It does not come as a surprise therefore, that
middle management in Western organizations often has trouble showing respect to workers or
„lower staff‟. Because we are used to closed systems, a social gap is often unavoidable. As
Kaizen systems require minimum social distance, this way of thinking can work very
counterproductive and should not be supported.
Loose or tight control
Kaizen systems can only work properly if employees are motivated and highly involved. They
are expected to approach their work cost consciously and make an effort to continuously
improve their performance standards. But, can we therefore conclude that Kaizen-oriented
suggestion systems only function in a working environment where control is high? The
answer is a little bit more complex than that. All depends on what is meant by a „highly
controlled organizational environment‟. Communication and control should never be a one-
way street. It should not be centralized nor be exclusively top-down. It is important to note
that bottom-up control should be allowed in the organization too. When employing Japanese
suggestion systems such as Kaizen, „all‟ employees should be given the possibility to express
their concern about issues they think are important to the organization.
47
Normative or pragmatic orientation
With respect to a normative or pragmatic orientation, Recht et al (1998) conclude that both
values are important to the organizational culture in which Kaizen-oriented suggestion
systems are applied. On the one hand, it is important that a sense of collectivism among
employees is present but on the other hand, employees should also have a pragmatic attitude,
because this allows them to continuously look for job improvements.
Process or results orientation
Contradicting opinions exist in various academic sources on the question whether Kaizen-
oriented suggestion systems should be process-oriented or result-oriented. Some sources
emphasize that Kaizen can only be process-oriented (Imai, 1997). As an organization, one
always aims to reach an intended goal. If for whatever what reason these goals are not
achieved, it is said to be due to errors in the process. This explains why Kaizen is considered
to be uniquely process-oriented. One assumes that each process has to be gradually improved
by human effort in order to achieve the expected results. This approach is in sharp contrast
with the more result-oriented approach that is often quoted next to the process-oriented view
in other papers. Recht et al (1998) claim a combination of both approaches can be possible.
According to their study, a focus on financial results does not necessarily exclude the use of
Japanese suggestion systems.
6.7 Conclusion and relevance of the framework
The empirical evidence regarding the possibility of a successful transfer of Japanese
management systems is mixed. The transferability of Kaizen-oriented suggestion system
(KOSS) seems far more complicated than it appears at first sight. Recht et al (1998) support
the claim that Kaizen-oriented suggestion systems are transferable to non-Japanese cultural
environments. In their study, they confront KOSS with foreign national culture and alien
corporate culture by using Hofstede‟s framework. His model is seen as particularly
interesting, because it makes a clear difference between national culture and organizational
culture. Two findings can be mentioned concerning their research. On the one hand, they
support the view that culturalists have failed to prove in which ways national value
48
differences can impose barriers upon the transfer of Kaizen techniques. They also conclude
that Japan‟s socio-cultural heritage is not a „sine qua non‟ for a successful implementation. On
the other hand, they stress that a successful transfer depends on six organization-culture
conditions: a clear employee orientation, long-term viability, free flow of horizontal and
vertical information, empowered employees who dispose of the information and the skills
needed to make decisions, a normative and a pragmatic orientation, and both process and
result oriented employees. A considerable amount of cultural insight and careful attention to
organizational conditions and labor expectations is thought of to be very important for a
successful implementation of Kaizen-related techniques.
If well aware of their own organization-culture profile, firms will have a higher likelihood of success when
adopting the Kaizen oriented suggestion systems. Lack of national culture awareness does not seem to be the
biggest barrier to a successful implementation: lack of organization-culture is.
Recht & Wilderom, 1998
Personally, I think one has to be very careful when making predictions about the
transferability of certain popular management systems. They can turn out to be castles built on
sand. I use this expression because the implementation of a successful working methodology
in one company is not always the best solution for another company. Even if one would
somehow be able to prove which elements are the most crucial ones in a particular
management system, one always has to take into account that other factors might become less
important when the world surrounding the system changes. In other words, it might be
possible to indicate the vital characteristics of a system and to reproduce it more or less, but
even then I think that it is impossible to reproduce all connections between these elements and
their external environment.
Japanese management systems have been imitated by international companies that wanted to
understand the link between national culture and the thriving success of Japanese companies
in international trade (Ouchi, 1981). Today, the transfer of Japanese ideologies and
organizational practices remains popular in some international companies in search of
excellence. In this respect, I think that one must be careful not to overlook the fact that
successful management systems are often the result of a wide range of subtle interactions in
which the most vital elements mostly remain undetectable. This is the reason why I‟m of the
opinion that the success of a well-working business system cannot always be explained.
49
In this conclusion, I will now further discuss the relevance of Hofstede‟s framework by
checking in what ways it is thought of to be relevant by employees who are working at Gerber
Technology in Belgium, as Kaizen-oriented suggestion systems are applied in their
organization as a Lean tool. Do the conclusions above somehow coincide? Is it simply a
question of cultural barriers or is there more to it? It has already clearly been stated that
Kaizen can also be affected by economic considerations. Particularly, the American
interpretation of Kaizen tends to stress economic benefits instead of the morale-boosting
benefits that Japanese management normally focuses on (Imai, 1986) (Recht, 1998)
(Desoussis, 1995). At Gerber Technology, this seems to be the case too. Kaizen is considered
to be a very practical tool that involves little risk taking. It is a very popular management
technique, mainly because it is seen as an inexpensive way to achieve better financial results.
These economic considerations should therefore not be neglected when talking about the
transferability of management systems. A paper that discusses the transfer of management
practices from parent companies in Japan into the operations of overseas subsidiaries of
Japanese enterprises claims:
The transfer of Japanese management practices is primarily affected by economic considerations rather than
socio-cultural constraints as it is frequently been argued in literature.
Desoussis, (1995)
The author claims that practices of large Japanese companies are seldom transferred as a
whole. He stresses the fact that it is far more common for companies only to implement
specific tools or functional equivalents of a system. With respect to Japanese management
practices, it is no coincidence that practices such as job rotation or internal promotion and
training have been generally introduced by many firms. It is logic, because they are relatively
low-cost measures. The typical high-cost practices that are associated with Japanese
management do not seem to be very popular. Most American companies do normally not
include tenured employment and seniority-based remuneration. Financial considerations
determine these choices.
Upon verification, economic considerations have also played a decisive role with respect to
the implementation of Kaizen events as a Lean tool at Gerber Technology. Lean initiatives
stress the importance of cost-reduction efforts. For this reason, Kaizen events are seen as an a
50
very convenient tool. They can offer economic monetary advantages. A poor arrangement of
the workplace or a job done inefficiently out of habit are examples of problems that can be
effectively addressed by applying this tool. Still, during the interview with the Service
Performance and Improvement Coordinator12
it is also clearly stated that Kaizen events can be
more than just a tool. In fact, Kaizen can also be a company philosophy, a way to improve
your self step by step. It can even be a way of living.
At Gerber Technology, central features of Japanese management systems are thought to be
transferable with some adaptation, provided that management makes a considerable and
sustainable effort. Management has the important task to lower the locus of control if
necessary. They have to stimulate long-term commitment to the organization and promote a
sense of high responsibility and individual self-control amongst working staff to make
Kaizen-oriented suggestion systems work. To optimize motivation, management should
structure the work in a way that fosters intrinsic motivation. These claims were made during
the interview and they are also supported in academic papers. J.A. Farris et al, (2008) stress
the importance of affective commitment to change, management support and attitude in this
respect. Research by Kennly (1995) also strongly emphasizes the importance of management
support. Yet, it appears as though some American managers at Gerber Technology never
seriously attempted to implement Kaizen-oriented suggestion systems. Thus, the record of a
feasible implementation is mixed at the moment.
Various researchers have studied cultural diversity in the workplace. They want to contribute
to a more efficient cultural integration of all employees within the multinational company by
making people more susceptible for cultural differences and finding adequate solutions that
are caused by the heterogeneous market. In this section, I have elaborated on the research
done by Hofstede because sometimes, his frame of reference can be used to analyze cultural
phenomena in the work floor. His work is also particularly interesting because it sharply
differentiates between national and organizational cultural components. Still, one must keep
in mind that cultural phenomena can be studied in various ways. Hofstede‟s work is not
necessarily the best way. His work is very controversial and it receives a lot a criticism. On
the one hand, it can help international organizations to prepare employees and to get them
12 Enclosure 4: interview.
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familiar with intercultural relations, which is very positive. But on the other hand, his work
unfortunately also copes with barriers that make it less credible in academic literature.
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7 External communication
7.1 Who is the customer?
Good customer management is important because an organization comes into contact with a
lot of different customers. Some of them are looking for bargains, whereas others pay more
attention to product quality or service. Every customer puts emphasis on different elements.
Therefore, it is very important for a company to know who its customers are in order to be
able to satisfy their needs. However small or big a company, this important marketing
principle always applies. An organization has to ensure the maintenance of good customer
relationships. Both Lean and Six Sigma practices are combined at Gerber Technology. These
approaches are very customer-oriented. Six Sigma is a customer driven approach with an
analytic problem-solving framework and Lean‟s strengths also lie in its customer focus. It will
soon become clear, however, that although a lot of attention goes to customer management in
this American multinational, the company currently faces some important challenges in this
respect.
Gerber Scientific is an organization that wants to be the market leader in its field. But every
multinational that wants to conquer a leading position on the global market has to know who
its target audience is. This is essential. Nevertheless, there seems to be some uncertainty and
lack of visibility for Gerber‟s customers at management level nowadays13
. This situation is
mainly caused by today‟s weak global economy. At Gerber Scientific, economic uncertainty
is currently reflected in a substantial drop of equipment and software sales. For these reasons,
management has adapted its business expectations for this year. Due to the financial crisis,
further delays in orders are expected from its customers worldwide. But who are these
customers?
The global market slowdown causes great challenges for Gerber Scientific. Lower software
sales are clearly pushing its Gross Profit down. Nevertheless, price increases and new
products are thought of to be capable of partially offsetting these bad figures. The company‟s
13 Gerber Scientific, Inc. Reports Third Quarter Fiscal 2009 Results
53
innovative potential is also seen as an advantage in the current weak economic environment.
Hopefully, future management predictions won‟t miss their target.
The current lack of visibility for Gerber‟s clients certainly makes it worthwhile to discuss the
concept of „the customer‟ in this paper, because it might have to be redefined in the future. At
Gerber Technology in Belgium, local vendors maintain professional customer relationships
with their clients in their own language, mostly in Dutch, French or English. All Belgian
customer relationships are business-to-business relationships. On the one hand the Belgian
customer database consists of Gerber Technology customers. These customers can be
multinationals such as Levi‟s, for example. On the other hand, the database also includes a lot
of smaller clients that are mainly interested in Spandex products of the Sign Making and
Specialty Graphics business segment of the Benelux. As these different types of clients go
through a different decision making process, an adapted approach is required for each of
them. But what is the right approach for each customer? There is not always an easy answer
to this question.
When one has a better look at the overview of customer‟s purchases in the company database,
a lot of useful information can be retrieved and different types of external customers can be
distinguished. Distinction can be made between potential customers, current customers and
lost customers, for example. (Thomassen, 2002) Potential customers are those customers who
are not yet bringing in any profits, but are expected to do so in the future. Current customers
are clients who are currently spending their money on company products and services.
Finally, lost customers can be best described as those clients who are dissatisfied and stop
buying for various reasons. Some clients might stop buying because they are of the opinion
that competition provides a better service, whereas others change their purchasing behavior
because of their limited access to credit, for example.
54
Potential customers, current customers and lost customers can further be subdivided into other
groups as shown in the figure below.
Bron: Thomassen, J.-P., waardering door klanten. Deventer, Kluwer, 2002.
By means of segmentation of the target group, potential customers can be defined and vendors
will know better who they can approach. Therefore, it is important to determine certain
characteristics of customers such as „purchasing power‟, „region‟, etc… Within this target
group, „prospects‟ are potential clients who might be interested in the type of products or
services the company has to offer. They can sometimes be approached by the sales
department in order to establish a relationship with the company. Establishing contact is
important, because it can be a deciding factor for future purchasing behavior.
As soon as a prospect accepts the first offer, a new client is created and goals can be adjusted
in order to make this customer a regular and loyal customer. Client and company make sure
that they come to an agreement with respect to delivery and purchasing conditions. In the
sales department of the Belgian subsidiary, these conditions are laid down in a sales contract.
A service contract is often also part of the deal. At this initial stage, informing a new client on
all aspects of the delivery process is of utmost importance, while good communication will
positively influence the customer in his decisions making process. It will certainly come into
play when the client will have to decide on placing another order. Customers will always
compare competitors and opt for the best contract when a decision is due. For this reason, a
Lost customers
Apostles
Regular customers
New customers
Prospects
Target group
Long standing customers
55
vendor should not forget to keep a close eye on the competition when approaching a new
client. Customers can easily turn into „lost customers‟ if they are persuaded by competition. A
company doesn‟t want to loose them, and certainly not if they can bring in a lot of profit.
Sometimes, a prospect becomes a regular customer. Thomassen (2002) calls this type of
customers „Apostles‟, because they are very repetitive in their purchasing behavior. They
place the same orders on a regular basis and also recommend the company to other potential
clients. It makes them very valuable customers. A company will always try to maintain them.
Making profit, achieving results and increasing revenue are important parameters that have to
be taken into consideration when dealing with customers. It is only logic that a company‟s
goal is to optimize its results. It should be mentioned, however, that within the business
context some common misunderstandings exists in this respect. One of these
misunderstandings is that „all clients should be treated equally‟ (Thomassen, 2002). On the
one hand, every customer should be treated with respect. That is true. But on the other hand, a
customer relationship has to add something to the company results. Therefore, every customer
has to get the attention he or she deserves. Making a distinction between valuable and less
valuable customers can certainly help to achieve these objectives. How this can be done will
be discussed later.
7.2 Decision Making Unit
In a business-to-business relationship, different parties can influence the buying process. It is
important to know your customer. Different groups can affect purchases within a company,
but who are these people? Czinkota & Kotabe (2001) distinguish six groups in the decision
making unit (DMU):
Decisions-makers: They make the end-decision in the organization and determine who will
be their company supplier for a specific product or service.
Advisors: These are the employees who advise others within the organization to buy a
particular product or service. They can be experts in their field, but they can also be
colleagues.
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Users: These are the employees who will actually have to use the product that will be bought
by the company.
Operators – Buyers: They are employees who are strongly involved in the customer-supplier
relationship. They place orders and execute payment.
Gatekeepers: Some employees within the organization can prevent a supplier from coming
into contact with those people who are in charge of purchases. This can be the receptionist or
the secretary, for example.
Approvers: They have to give their consent before the purchase can actually take place.
All these people are part of the Decision Making Unit (DMU) and have different priorities
(Czinkota & Kotabe, 2001). Every member values different characteristics. Employees who
will actually have to use the product that has been bought by a company might prefer the
usability of a product over the price, whereas a secretary might be more concerned about
friendly service, for instance. These examples clarify that it is of great importance to know the
DMU of the company you are doing business with. A company always has to proactively
work on a favorable decision.
The DMU can differ according to the size of the company. Vendors will have to adjust their
strategy, depending on the type of company they are dealing with. In a small company, the
entrepreneur is often the only decision-maker. Therefore, he or she will probably prefer a
personal approach. In a medium-sized company, things are slightly different. A vendor will
have to focus more on the internal structure of the company in order to know which persons to
approach. The way of doing business can greatly vary within this type of organizations.
Finally, large companies are the hardest to work with. A thorough analysis is necessary to find
out more about the decision making process within this kind of companies.
From the previous sections, one can derive that it is not always easy to find out what the
DMU of a particular company stands for. It turns out that the decision making process of an
organization is often complex. Moreover, a heterogeneous client database that combines lots
of different types of customers can sometimes result in strange outcomes. Five percent of your
clients might be responsible for ninety percent of your returns, for instance. These unexpected
57
disproportions are not always recommendable. Based on their input, certain companies might
become VIP customers to a certain point. Of course, all customers deserve equal treatment,
but when a particular company is responsible for a very large part of your sales returns,
providing excellent service can become even more essential.
7.3 Customer Management
Customer Management is an activity that is necessary to attain the company goals in an
efficient and effective way (Thomassen, 2002). Management has the important task to predict
the behavior of customers and to take action in due course. Defining the target group, paying
attention to a customer-oriented approach and creating customer satisfaction and loyalty are
all very important aspects in this process. In the schedule below, they are presented in a cycle
of customer management as a step-by-step approach to create customer value. Distinction is
made between five steps that should make a maximum contribution to returns and profit. They
will be explained next.
Source: Bron: Thomassen, J.-P., waardering door klanten. Deventer, Kluwer, 2002, p. 28.
7.4 Determining the target group
First, a company has to determine which customers it wants to reach. This is the first step that
management has to take. A target group has to be defined and consequently, client
segmentation can take place. Once this has been done, a company knows which customers it
can approach and decisive measures can be taken accordingly.
customer-oriented
approach (2)
customer value and
financial
results (5)
determine target group and
segmentation (1)
customer satisfaction and
trust (3) customer loyalty (4)
Cycle of customer management
Customer value Value experienced by customers Value effects
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The choice of a target group depends on different criteria: these can be geographical,
demographical, psychological or behavioral criteria. In the Belgian subsidiary of the
American multinational, geographical focus is on customers located in the Benelux aria, for
example. Taking these criteria into account, clients can consequently be evaluated from three
additional angles (Thomassen, 2002). These angles are „the customers‟ need and their return
on investment‟, „competition‟ and „company identity‟.
The customers‟ needs and their return on investment are of central importance to the
organization. Once a company knows which products and services clients are interested in, it
will have to make an estimation of the amount of money they are willing to spend. Customers
from their side will only be satisfied when the asking price and their efforts are in balance
with the quality of the product or service they get in return. Several criteria can be important
in this respect: the product, the service, customer relationships,.. even emotions can make a
difference. A company has to take into consideration that some criteria can be more important
to a client than others. Price conscious clients might decide only to pay for one particular
product and skip all additional services, because the additional costs are weighing too heavy
on their budget, for example.
Competition is a second angle never to lose out of sight. A company has to be aware of the
fact that a thorough analysis of competition is essential. In this respect, it can learn a lot from
the way competitors do business. By studying other firms, a company can make a difference
for the client. Small differences sometimes suffice to make certain customers shift from one
supplier to another. Delivery speed, additional training or customer advice can be decisive
assets in this respect.
A third aspect that has to be taken into consideration is the company identity. The company
can do a SWOT analysis to determine its own strengths and weaknesses, and its external
opportunities and threats. When placed in a grid, a combination of „strengths & opportunities‟
and „weaknesses & threats‟ can be a very helpful tool for a company. It allows for a better
evaluation of the companies‟ activities and can be used when determining the company
profile. On the one hand, success factors of a company can be taken into account. On the
other hand, the company will be better able to control its own weaknesses and to make
improvements if necessary.
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7.5 Segmentation
Determining the target group and client segmentation are very important steps in the customer
management cycle (Thomassen, 2002). After the target group has been defined, segmentation
can be done, based on customer value and customer needs.
It is important for a company to pay attention to customers‟ needs. Demands of customers can
differ, but sometimes tangent planes can be detected, as different groups can be distinguished
based on their purchasing behavior. In this way, a company will be better able to manage
different aspects of customer-orientation.
Companies should also that into consideration that certain customers are more probable than
others to become big spenders in the future. These customers could become important for the
company in the future. Organizations therefore try to define the financial value and the
strategic value of their clients. Financial value is a guarantee for the continuity of a company,
whereas strategic value is the value a customer gives to a company by attracting new
customers or by providing the company with important information. Strategic value often
comes into second place, because it can not immediately be translated into profit. Still, it can
be very important.
Determining customer value is not always an easy task. Sometimes, it will even result in the
rejection of certain customers. Others customers might be treated royally. Client management
has the difficult task of focusing on the right customer.
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8 A Customer-oriented approach: a pilot project
Gerber Technology in Belgium is very customer-oriented. The client is of central importance
and by means of the DMAIC roadmap the voice of the customer can be defined. In this way,
the company can attune all its products and services to the needs of the customer. By means
of Lean Six Sigma, communication and teamwork are improved through a common set of
tools and Lean techniques.
One example of the customer-oriented approach of this multinational will now be explained
by means of a pilot project that was launched in its Belgian subsidiary. The project focused on
a problem that had been haunting the organization for a long time. Significant problems were
caused by the amount of time that clients had to wait before their problems were addressed
and solved. Therefore, it was decided by management to dedicate a project on both the
reduction of „Call Back Time‟ and „Processing Times‟ in the service department of its Belgian
subsidiary. A disciplined and repeatable Lean methodology was introduced to rework the
external communication procedures.
A new set of operation principles was developed by management and was introduced in the
service department in Belgium. It incorporated a quality control system for monitoring the
waiting time per client. The quality control of incoming phone calls was to be measured in
SAP, a software package that streamlines all administrative business processes within the
firm. When this project was introduced by management, Lean had not yet officially been
implemented worldwide, but one can certainly characterize this project as such, as each step
in the process was defined and was expected to be performed repeatedly in the same manner.
But how does this procedure work? It will now be explained by means of a concrete example.
As soon as a client calls, the call operator makes a notification in SAP. This means that the
operator registers the call in the computer system. Customer data are looked up and a detailed
description of the problem is taken down by the operator in order to inform technicians, the
planner coordinator and management about the gravity of the issue. After registration of the
call, a number is automatically created in the computer system. This reference number is
given to the client. The number is seen as a way of guaranteeing the client that his or her call
will be treated in due time. As soon as the operator has rounded off the call, time starts ticking
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in SAP and the technician will be automatically informed of the client‟s situation. He is to call
back the customer as soon as possible and has to register his actions and „Call Back Time‟ in
SAP accordingly.
This new procedure allowed for better follow-up and accurate measurement of the calling
process. Not only did it become possible to measure the duration of each call with each
customer due to the systematic registers of calls in SAP, it also became possible to measure
the response time of an engineer and the amount of time it took to do a repair. Focus during
the project was mainly on the latter. The time needed for the engineer to solve a particular
issue had to be as short as possible. Another additional focus was on the „Call Back Time‟ or
response time. It could be calculated as soon as the service operator would close down a call.
Both were important, as management‟s stated purpose was to positively impact customer
satisfaction in this way.
The selected CTQs were:
The throughput time: this can be defined as the time between the notification (call register)
and the time needed for an engineer to return a call to the client. This is the Call Back Time.
The processing time: it can be defined as the time needed for the engineer to solve a
particular issue.
During weekly meetings, more attention could now be given to „Call Back Time‟ and
„Processing Time‟, as it became possible to measure the process for each individual customer
in SAP. Responsibilities were defined and employees were clearly instructed to work
according to the new standard operating procedures. Additional training was given on
standard communication templates, to make sure everyone would follow and comply to the
new system. In this way, management wanted to avoid that errors could possibly be attributed
to the lack of knowledge by the user of the software system. Employees were closely involved
in the process. The call operator was instructed to calculate the Call Back Time by means of
Excel files. During weekly meetings, this Excel sheet was then used by the manager to discuss
reasons for long delays in processing time and throughput time. Unfortunately, calculation of
call back times could not be done in a professional way by the operator who was made
responsible for the weekly reports, as no means were made available to draw a report on call
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back times from the SAP system itself. Data had to be calculated in Excel files, and tack times
copied and pasted out of the SAP system for each and every customer. Consequently, the
measurement system was not sufficiently accurate and procedures became very long-winded.
Two different paper flows were created and they existed next to each other. This created
confusion, of course. Superfluous information updates had to be done and double standards
were created. Although this problem was frequently reported, it could not be addressed.
Moreover, because of the frequency of the meetings, some employees experienced the new
procedures to be exclusively top-down, and saw them as a way to control and check upon
employees. Nevertheless, it should be mentioned that this new way of handling calls also had
some advantages. Sometimes, delays in processing time could be due to stock shortages of a
specific part needed for the reparation of a machine, for instance. By including these data in a
report directed to management, extreme outliers in processing time could be detected and
corrective action could be undertaken to improve the overall customer service. In this respect,
the new way of reporting made employees also think of communication and control to be a
two-way street. Weekly meetings allowed them to report problems concerning stock
shortages, delivery problems and other issues. It caused them to be more involved.
As the project went on, some additional practical problems surfaced, because it turned out that
the new procedures also caused some resistance (and even anger) among certain clients.
Although clients could now significantly reduce their phone bills because technicians were
instructed „to call them back‟, some customers were not happy with the new service. In fact,
the Spandex customers in particular were not used to being given a „number‟ and they
complained about it. This problem increasingly became the topic of conversation during the
weekly meetings. It was decided by American management, however, that the new method
was for the better. By means of this new customer-oriented Lean procedure, which could be
also be called a „visual management Lean system‟, both call operators and engineers were
made sensible for the importance of reduced „Call Back Time‟ and „Processing Time‟.
Systematic confrontation with reports during weekly meeting caused Call Back Time to
reduce significantly. Reports were not only used as an improved feedback and coaching
method, but also served as a basis for annual appraisal purposes. The immediate consequences
of the new Lean implementation were impressive. Call back time was significantly reduced in
a short amount of time. Still, some pertinent questions remained unanswered. Certain
customers were rejected due to the implementation of this new procedure. One could
therefore ask oneself, whether or not the company lost the right customers in this case.
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Although „product quality‟ and „a fast repairing process‟ can be very important, some
customer seemed to value „personal service and a positive relation with their supplier‟ even
more. But who is this customer?
The previous example demonstrates that sufficient insight in DMU is very important in a
business-to-business context. Customers can have different perceptions and expectations.
They have to be taken into account when making decisions at management level. With regard
to the procedure on „Call Back Time‟ that is mentioned above, it is clear that something went
wrong in this respect. A few months after its implementation, management eventually decided
to change the procedure again for „some‟ customers. Due to the numerous complaints, the
new procedure was thought of not to be very appropriate in certain cases. As a consequence,
two different groups of customers were created. GT customers had to be given a number
according to the new procedure, but the Spandex customers had to be given a more personal
approach. Each group could now be approached differently.
Language is a way to express ones thoughts. It shapes communication. In addition, obtaining
information by means of measurement systems can help a company to build up its attitude and
behavior. I think one must admit that measuring in organizations has improved a lot over the
recent years, especially when it comes down to process and quality management.
Nevertheless, when trying to improve customer satisfaction, in my opinion certain managers
sometimes miss the boat. Determining the right priorities causes great difficulties to them. As
a consequence, certain measurement systems in SAP can completely deform the company
strategy and give a distorted picture of reality. In the previous pilot project, I think “the
balance” has been used to express the value of the company in the long run. In my opinion,
this is not always a useful tool to determine priorities, because the most important capital
good of a company, the human being, does not appear in it. Only too often, I think this fact is
simply ignored.
The previous pilot project also shows us that a uniform standard operation procedure is a
common improvement action of Lean in service environments. Variations in the process are
thought of to create quality problems requiring costly rework or scrap. Still, „client
differentiation‟ is a necessity (Thomassen, 2002). It is one of the basic principles of client
management. In fact, at Gerber Technology in Belgium, differentiation is not only made by
splitting up groups of customers but distinction between clients is also made by means of
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various types of service contracts. These contracts are linked to customers in the SAP system.
In this way, the operator should be able to keep track of particular client wishes. Links are
provided and they allow direct access from client numbers to contract data. It makes the SAP
system a very useful tool for the service department. Service contracts can include or exclude
„free replacement of spare parts‟ or „free telephone support‟, for example. Individual service
contracts can also focus on the time span in which a service engineer has to offer “on site
customer support”. Service could be needed within 24 hours or within 48 hours, according to
the specifications that are initially agreed upon. Clients who have bought software
applications can benefit from different types of contracts too. These can be contracts that
include „only software updates‟, which is considered to be a minimal support. Other
customers prefer more contract options that contain software updates with unlimited
telephone support, for example.
8.1 Customer satisfaction
How can we know if the customer is a satisfied customer? Often, companies try to find out
more by measuring customer appreciation according to specific criteria. But this is not always
an easy task. Only think of the rare events in which customers send biscuits to a company to
say „thank you‟. Feedback is not given often, and certainly not if it is positive feedback.
Finding out what customers really think requires additional efforts. But it is very important, as
customers are the organizations‟ most prized stakeholder group.
Customer satisfaction and loyalty are measured through customer surveys. These factors are used in looking
at employees‟ performance which can be one measure to determine the annual merit increase.14
Director of Int‟l Compensation and Benefits – Gerber Scientific, Inc.
By means of an interview and a questionnaire, I was able to retrieve more information on the
way in which the service and application department of the Belgian subsidiary gather and
quantify information on customer satisfaction. They use different means to obtain their data.
The service department focuses on engineer performance, for example. By means of a survey,
the customer‟s opinion is asked after installation of a new machine. Installation of new
machines is always accompanied by an additional training on the use of the machine and after
completion the customer is asked several questions by the customer service operator on both
14 See: enclosure three, question five.
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performances. The operator calls the trainee (or the person who has supervised the
installation) and asks for his/her opinion. By means of a list of questions on customer
satisfaction, various issues are discussed. The respondent can answer each question by
choosing values ranging from „very satisfied‟ to „very unsatisfied‟. The customer also has a
possibility to give additional comments on the services performed. Some examples of
questions included in the survey are:
How satisfied were you with the tech support representative’s ability to resolve your
problems to your satisfaction?
How satisfied are you with the tech support representative’s courtesy / professionalism?
How satisfied are you with the tech support representative’s knowledge / Technical
expertise?
Were you satisfied that your issue was resolved in a timely manner?
Are you satisfied that you were kept fully informed of progress?
The replies to these questions are directly entered into the SAP system, where they can be
retrieved for further analysis. Statistics are made at management level.
Service engineers who perform the installation of a machine are also responsible for
additional training courses at the customer‟s site. Their opinion is considered to be vital for
quick and efficient problem solving. After each installation, they are also requested to fill out
a form in order to check for possible issues that can be improved. In this way, new
appointments can be made with the customer to solve ongoing issues.
The application department is responsible for the installation and trainings on software
applications that can be used on the machines that have been sold to customers. Application
engineers check customer satisfaction in a slightly different way. Customers have to fill in a
list of questions on a „training course evaluation form‟, once the training is completed.
Opinions on the performance of the trainer and the course content are checked by means of
several questions in which a five-point Likert scale is used. It contains values ranging from „I
strongly disagree‟ to „I strongly agree‟. Additional open questions are also asked to obtain
further comments and suggestions for improvement. Some answers can give a better
indication about ongoing issues. After completion, the form is handed back to the trainer and
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used for further analysis. The high amount negative reactions this department receives on the
small amount of training days they get can give a good indication that something should be
changed in this respect, for instance. Graphics that include significant data are also created.
They are used for follow-up.
In my opinion, customer satisfaction data can be valuable to a company, but these data should
always be complemented by information on their willingness to pay for the products and
services that are sold (Reichheld, 1999). To register the amount of money a client is willing to
spend has an important advantage. The company will be forced to focus its investments in
customer satisfaction on those customers that are the most valuable for a company. Good
management in this respect can lead to better financial results.
8.2 Customer Loyalty
Loyalty means that clients are connected with the organization. (Thomassen, 2002) When
customers are satisfied and have enough trust in the company, they will remain faithful to the
organization. However, maintaining customers is not for sale. Loyalty can only be achieved
through confidence, dialogue, interaction, a feeling of appreciation and satisfaction. It is not
easy to attain this goal. Building a long-term relationship doesn‟t happen overnight.
The organization focuses on the maintenance of its customers. On the one hand, it can be easy
to describe the notion of a loyal customer. But on the other hand, these customers might not
always be easy to recognize. Thomassen (2002) describes the behavior of a loyal customer in
the following way:
1) The customer wants to invest in his relationship with the supplier. He repeatedly buys the
same products from his supplier. Sometimes, he will buy more products in the long term15
.
2) A customer is likely to enlarge the customer database by making mouth-to-mouth
publicity. This form of publicity can have a very positive effect on the development of
customer loyalty. Every customer that has a positive relationship with his or her supplier will
15 Still, we have to realize that this is not always the case. Some customers have a positive image of a brand name but they will never buy
anything, because they cannot afford it.
67
tend to recommend it to others. In this way, new customers can be created without any
additional effort by the organization itself. Only one condition has to be fulfilled: the
customer has to be a satisfied customer. Dissatisfied customers make the total amount of
clients go down.
3) When loyal customers are unsatisfied, they will make an effort to inform the supplier of the
issue that bothers them. They will not hesitate to make a complaint and take time to do
suggestions of their own.
4) A loyal customer maintains a good relationship and intensifies his cooperation with the
supplier. The customer will not hesitate to share important information. In some cases, he will
spend time and money to improve the customer relationship even further.
Of course, every company would like to have loyal customers. Loyal behavior of customers is
often tried to be achieved by making specific marketing efforts. In the figure below, we can
see that both marketing efforts and loyalty can lead to an increase of return and retention.
Retention is the behavior that a customer displays in order to stay with the organization.
Verduin, R., Customer Relationship Management. Een inleiding. Deventer, Samson, 1999, p. 40.
To make this process run adequately, one has to know which elements can have an influence
on loyalty. They are called „loyalty drivers‟. Most important loyalty drivers are mentioned in
the overview below:
Marketing
Efforts Loyalty
Increased
Return
Retention
Relationship between loyalty and retention
68
Satisfaction and trust
Customer satisfaction with respect to business transactions can boost customer loyalty. In
Trust is another important driver in the long run.
Price/performance relationship
The price/performance relationship is also an important driver for loyalty. It means that a
customer has the feeling of getting something valid in return for the money spent. It is
important, however, to keep an eye on the competition in this respect. One has to take into
account that customers will always compare products and services of different companies. Of
course, they will opt for the best deal in the end.
Absolute price
Comparing prices can be crucial for certain customers. Some clients are always looking for
the cheapest price, for instance. They are often very disloyal customers, because they run over
to the competition very easily.
Regulation, market position, switch barriers
Respecting rules and regulations can be important loyalty drivers too. When a company
strictly respects the environmental conditions, the confidence of a customer will be gained
more easily. This is a good example because after all, nobody wants to buy products from a
company that pollutes the environment. Secondly, „switch barriers‟ can also influence loyalty.
These are obstacles that prevent customers from going to the competition. Think of conditions
that have to be fulfilled to change or end a contract. It can make customers hesitate to change
suppliers. That‟s a good thing, but one must not forget certain contract stipulations can also
turn out to be very bad publicity for a company. Take the negative publicity on mobile phone
operators, for instance. The amount of complaints concerning the difficulties experienced by
clients when they wanted to end their contract even got into the evening news. This shows
that there is also another coin to the picture. Finally, the market position must be mentioned
here, because it can also influence the way in which companies think about loyalty.
Companies that have a monopoly in a certain sector will probably think very light of customer
loyalty. They might even claim it is superfluous.
69
Characteristics of a person/company
Vendors can influence customer loyalty because of their personality and the way they
approach a customer. Furthermore, the company image can also be a loyalty driver that
should not be underestimated.
Circumstances linked to the company/person
When a company moves to a different site, customers can be lost. Thus, circumstances linked
to a company or a person can be a loyalty driver too.
8.3 Customer Loyalty surveys
Although Customer satisfaction surveys have often very low response rates, feedback arising
from them is considered to be critical to a business‟ development. Nevertheless, knowledge
on customer satisfaction is not the ultimate guarantee for customer retention. Reichheld
(1999) suggests that customer loyalty is far more important and claims it can be an indicator
for a company‟s revenue growth. It does not come as a surprise therefore, that his work has
been one of the most discussed market research topics in the last couple of years. Reichheld‟s
predictor of company growth is called the Net Promoter Score (NPS), and allows a
straightforward calculation of customer loyalty. Moreover, it can be easily implemented.
In fact, it is a very simple metric that can be used to gauge the loyalty of a firm‟s customer
relationships. NPS measures can be obtained by means of a telephone based interview asking
customers about their likelihood of recommending a product or a service to a friend or
colleague. The scores are measured on a scale from zero to ten.
On a scale of 0-10, how likely is it that you would recommend [company A/ brand X] to a friend or colleague.
Not
at all
likely
(neutral) Very
likely
0 1 2 3 4 5 6 7 8 9 10
Detractors‟ (0–6 rating):
extremely unlikely to recommend
Passives (7-8):
passively
satisfied
Promoters (9-10):
extremely likely
to recommend
Adapted from: "The Ultimate Question" by Fred Reichheld
70
The results are easily to interpret and to communicate. They can be used to calculate the Net
Promoter Score, which is the ratio of promoters to detractors. To calculate the NPS, the
percentage of customers who are promoters has to be subtracted from the percentage of those
clients who are detractors. Detractors are customers rating from zero to six on the scale and
promoters are clients who get a score ranging from nine to ten.
On the one side, detractors are said to suck the life out of the organization. They feel badly
treated by the company and warn others to stay away (Samson, 2006). They spread negative
comments that may diminish the company‟s reputation, undermine employee motivation and
discourage new customers. In the past, companies assumed these unsatisfied customers would
tell an average of ten people about their bad experiences. Today, companies are more prudent.
With the increasing popularity of the internet, it is not unthinkable that unhappy customers
will inform hundreds of other potential clients about their experiences. Promoters on the other
side, are considered to be satisfied customers who are willing to come back and tell others of
the good services they received (Samson, 2006). This can be very positive for the image of a
company. Promoters‟ positive word of mouth is said to be very likely to translate itself into
growth and an increased long term revenue for the company involved. Passives are a third
category of customers that has not yet been mentioned here. Their score ranges from seven to
eight on the scale. According to Reichheld (1999), this means that Passives are satisfied, but it
also indicates that they might be rather unenthusiastic customers too. Therefore, it is said that
these customers could easily be convinced to try out a competitor.
Thus, the NPS measures customer attitudes towards acting as brand advocates. It is important
to note, however, that the survey do not measure their actual behavior. Nevertheless,
Reichheld‟s work has shown that promoters are more likely to be loyal to the company than
detractors. In other words, asking only one question can be a useful barometer for both the
advocacy and loyalty of existing customers. Furthermore, the Net Promoter Score can be
calculated for particular company divisions or geographic regions. It can be a very helpful
means to identify major customer issues and it can provide the company with valuable
insights. This method of measuring customer loyalty is applied at Gerber Technology in
Belgium. If a score is not according to the expectations, outcomes are discussed with the
client. Some additional questions can sometimes be necessary. They allow for a better
interpretation of the customer‟s feedback.
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8.4 Concluding remarks
Customer satisfaction surveys are used the most often by organizations, but they also turn out
to be the least trustworthy. They have important limitations. The ways in which data are
gathered and the priority that is given to survey results can sometimes cause problems for an
organization (Reichheld, 1999). Surveys are not always equally reliable. A few remarks
should therefore be made in this respect.
The initial results of a customer satisfaction survey can often be interpreted very easily. They
make quick improvements possible. Customers can sometimes be unhappy because the
operator doesn‟t pick up the phone fast enough or because a technician is late for an
appointment, for instance. The solution to these problems is very clear and does not require a
lot of money. But when these problems are solved, however, an organization might realize
that the next step is „real investments‟ and they cost a considerable amount of money. Are
these investments worth the effort? … Unfortunately, the results of customer satisfaction
surveys do not hold the answer to this question.
Moreover, surveys are often the result of unproductive work linked to bonus systems. When
this is the case, customer satisfaction becomes a goal on itself. Employees will simply look
for the best ways to improve their scores. Sometimes, they do this by asking customers how
happy they are with their new machine immediately after they bought it. Similarly, operators
sometimes tend to manipulate survey results. But how is it possible that some employees are
insufficiently motivated or seemingly not willing to reduce the loss of customers within their
organization? Why do they cheat? It is often assumed that this behavior is simply due to
laziness. Apparently, some employees are lacking the willingness to learn. According to me,
however, the deliberate manipulation of survey results can also be due to the absence of good
communication. I think that motivation is crucial in every job you do and that honest reactions
are only possible when you get the right incentives. When an employee is convinced of the
fact that promotion will be linked to the degree in which his or her department has managed to
diminish the amount of departing customers, obviously he or she will make a lot of effort to
present excellent figures of customer satisfaction. Only when the employee realizes that it
doesn‟t make any sense to manipulate the figures, can objective and truthful results be
obtained. Therefore, I think that operators in general should be well informed about the way
72
in which customer satisfaction data are used by management. In addition, it should be made
clear to them that a negative response from a customer is not necessarily a failure. Instead,
reporting negative results can also be seen as an important contribution to the organization.
After all, an organization can learn a lot from customer complaints.
Errors made by an organization are often most visible when clients depart. Sometimes, a
single event can cause a customer to leave. Only think of the example of the customer who
got furious while he was given „a number‟ by the operator16
. It shows us that external
communication can be extremely important for a company. At the moment when customers
become „lost customers‟, the company can get a good indication of the importance of certain
value streams. It can therefore be a good idea to check out the main reasons of their departure
and to figure out which company practices are in need of improvement. By contacting lost
customers and by conducting depth interviews with them, one might learn how to build
customer relationships on a more solid basis (Reichheld, 1999). Admitting mistakes, however,
is a very difficult thing to do. Still, I think sometimes it is worth the effort.
In addition, I think an organization has something to gain when it focuses on the most
profitable members in its customer database. A company should offer these clients a value
that is superior to the competitor. It is also important to find the „right‟ customers by making a
connection with profit or loyalty in the client‟s purchasing behavior. In this respect, one has to
realize that the positive results of a customer satisfaction survey do not necessarily coincide
with higher figures of buying behavior. In fact, there can even be enormous differences. On
the one hand, ninety percent of customers might be very satisfied, but on the other hand only
twelve percent will call back to place a new order. This example shows that the increased
satisfaction of a customer does not automatically mean that his or her buying behavior will
rise too. Still, this mistake is sometimes made.
All in all, I think that customer loyalty is something a company has to deserve. Clients are the
capital of an organization and one has to try to maintain them. Of course, a good pricing
policy and an excellent service quality and product range are very important in this respect.
Still, one should keep in mind that a company‟s goals are not limited to making profit only.
Growth expectations should not only be based on the expectations of Wall Street, but also on
the creation of sufficient opportunities for those people who are part of the business system.
73
In this respect, motivation of staff and internal communication play an important role. People
who subscribe the values of the company should be given the right incentives to make a
positive contribution to it.
16 I refer to the section in this paper on the pilot project.
74
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Samenvatting: Nederlands
Ieder bedrijf stelt verschillende doelen voorop, zoals winst maken en klantentevredenheid
verbeteren. Een efficiënte organisatiestructuur is in dit opzicht een eerste vereiste om de
gewenste resultaten te bereiken. Ook managementcommunicatie is belangrijk. Het is vorm
van bedrijfscommunicatie die interne en externe doelgroepen positief kan beïnvloeden.
In het eerste gedeelte van deze scriptie geef ik daarom de nodige aandacht aan een paar
management theorieën. Zij zijn een vermelding waard omdat ze een grote invloed kunnen
hebben op de manier waarop de communicatie in een onderneming wordt gevoerd.
Vervolgens voeg ik ook een overzicht van culturele studies toe. Door de globalisering krijgt
dit type van studies vandaag heel wat aandacht in academische literatuur. Enkele knelpunten
waar dit soort onderzoek vaak mee te kampen heeft worden dan ook uitvoerig toegelicht.
Daarna richt ik mij op één Amerikaanse onderneming: Gerber Scientific, Inc. Ik bespreek
hierbij de manier waarop deze multinational communiceert in België. In een case study,
belicht ik verschillende aspecten van de organisatiestructuur en bespreek ik ook hoe het
bedrijf omgaat met globalisering en culturele verschillen. Management tools en interne
aspecten van communicatie worden in detail toegelicht.
Eén management techniek behandel ik uitvoerig in dit eindwerk: “Kaizen”. Het is een
managementmethode die Gerber heeft overgenomen uit de Japanse bedrijfscultuur en
toegepast in de onderneming. Toch is deze methode geen exacte kopie van het origineel, een
rede te meer om eens na te gaan wat de academische literatuur te vertellen heeft over de
oorspronkelijke betekenis van het woord “Kaizen” en over de mogelijke effecten van een
transfer van Japanse managementtechnieken naar Westerse ondernemingen. Vaak wordt
immers beweerd dat een succesvol verloop van Kaizen events in onze Westerse samenleving
bemoeilijkt kan worden door socio-culturele beperkingen (Recht & Wilderom, 1998).
Meningen van wetenschappers blijken erg verdeeld te zijn over dit onderwerp en daarom zijn
ze de moeite waard om te bespreken.
Natuurlijk heb ik ook gepeild naar de mening over dit onderwerp bij Gerber. Uit mijn
interviews en surveys blijkt dat vooral economische overwegingen een doorslaggevende rol
hebben gespeeld bij de keuze om Kaizen events in de Amerikaanse multinational te
77
organiseren. Overigens blijkt uit de antwoorden op mijn vragen over Kaizen-georiënteerde
suggestiesystemen dat een geslaagde transfer van Japanse managementtechnieken als een
realiseerbaar plan wordt ervaren in de onderneming, maar dan wel enkel wanneer de
bedrijfsleiding een aanzienlijke en continue inspanning levert om deze opzet te doen slagen.
Daar hoort natuurlijk goede communicatie bij. De Service Performance & Improvement
Coordinator besluit daarom dat Japanse management technieken enkel kunnen werken in een
Amerikaanse onderneming als de communicatie er een tweerichtingsverkeer is.
In het tweede deel van dit eindwerk, focus ik meer op de externe communicatie van deze
onderneming. Het is erg belangrijk voor een internationale onderneming om te weten wie haar
klanten zijn en welke klanten ze wil bereiken. Daarenboven is het niet altijd gemakkelijk om
te weten wat de juiste aanpak is voor elke klant (Thomassen, 2002). Daarom heb ik ervoor
geopteerd om de relaties met de klant in de Belgische dochteronderneming te bespreken. Ik
licht enkele aspecten van het klantenmanagement toe en bespreek ook een pilootproject rond
externe communicatie. Hierbij heb ik niet nagelaten om ook enkele knelpunten aan te halen.
Voor een onderneming is het belangrijk om de juiste klanten aan te trekken. In dat opzicht,
denk ik dat een bedrijf er goed aan doet om te focussen op haar meest winstgevende klanten
door hun een meerwaarde te bieden ten opzichte van de concurrentie. Het is overigens ook
belangrijk om die klanten te kunnen behouden, omdat ze het kapitaal van de onderneming
zijn. Toch is loyaliteit is iets wat men als bedrijf moet verdienen. Het staat buiten kijf dat een
goed prijsbeleid en een uitstekende service- en productkwaliteit erg belangrijk zijn in dit
opzicht, maar volgens mij mag men ook niet vergeten dat de doelen van een onderneming
zich niet enkel mogen beperken tot het maken van winst alleen. Groeiverwachtingen mogen
daarom niet enkel gekoppeld zijn aan de verwachtingen van Wall Street. Ze zouden ook
rekening moeten houden met de mensen die deel uitmaken van de onderneming. Het is dus
belangrijk om ervoor te zorgen dat de mensen die de waarden van een onderneming
onderschrijven ook de juiste stimuli krijgen om er een positieve bijdrage aan te kunnen
leveren. Goede communicatie speelt hierbij een erg belangrijke rol.
Enclosure 1: Training Course Evaluation Form
Name: Training Location:
Trainer‟s Name: Date:
Course Title:
Please place a cross (X) in the box which best fits your opinion, in response to each statement:
1- Strongly Disagree. 2 - Disagree. 3 - Neutral. 4 – Agree. 5 - Strongly Agree.
Trainer Evaluation
Rating 1 2 3 4 5
The Trainer….
1 ... explained new terms / theory clearly.
2 ... presented information logically, in an easy to follow manner.
3 ... was interested in whether or not I learnt.
4 ... was attentive to my questions, comments and opinions.
5 ... encouraged me to participate in the learning process.
6 ... was available to provide help and/or feedback when I required it.
7 ... created an atmosphere that was good for learning.
8 ... gave acceptable answers to my questions
9 .... conducted the course in a professional manner.
10 What was your general impression of the trainer and the learning environment?
Course Evaluation
Rating 1 2 3 4 5
12 The total length of time for the course was sufficient.
13 The pace at which you were required to work was appropriate.
14 The number of students assigned to each Trainer was correct
15 The course content was at the right instructional level (not too simple or difficult)
16 Your overall impression of the course is:
1- Very Poor. 2 - Poor. 3 - Reasonable. 4 – Good. 5 - Excellent.
If you gave a rating of 3 or less for question 16, please provide further comments.
What changes, if any, would you suggest for the training course?
Thank you for completing this form, please hand it back to your trainer.
79
Enclosure 2: Measuring Service Value
1) How do you measure service value?
Typically, a company measures value using the reasons expressed by customers for high or low satisfaction…
2) How are customer satisfaction data gathered and how is this information used to solve
customer problems?
3) Where are the listening posts for obtaining customer feedback in your organization?
4) How is information concerning customers' perceptions of value shared with those
responsible for designing a product or service?
5) What proportion of business development expenditures and incentives are directed to
attracting new customers and to the retention of existing customers?
6) How do you define loyal customers?
7) How do you measure employee satisfaction / employee productivity?
8) Do measurements of customer profitability include profits from referrals?
For example, company x provides high-quality, free lifetime service for a personal finance software package that sells for as
little as $30. The strategy makes sense when the value of a loyal customer is considered…(one could create extra revenue
from software updates, supplies, and new customer referrals)
9) To what extent are measures of customer satisfaction, customer loyalty, or the quality
and quantity of service output used in recognizing and rewarding employees?
10) To what extent are measures taken of differences between customers' perceptions of
quality delivered and their expectations before delivery?
Differences between experiences and expectations can be measured in generic dimensions such as the reliability and
timeliness of service, the empathy and authority with which the service was delivered, and the extent to which the customer is
left with tangible evidence (service order…) that the service has been performed.
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Enclosure 3: Questionnaire Communication Patterns
1) How would you describe communication patterns within the company?
1. Ethnocentrism: refers to a domination of headquarters over its subsidiaries.
1 = does not apply / 5 = applies
1 2 3 4 5
2. Polycentrism: a wide autonomy is left to the subsidiaries.
1 2 3 4 5
3. Regiocentrism: autonomy is left tot the subsidiaries group in a region according to
cultural, geographical, political criteria. (autonomy left to subsidiaries grouped by sub-
cultural zones)
1 2 3 4 5
4. Geocentrism: describes a network where headquarter is just an element.
1 2 3 4 5
Could you please motivate your choice (of course, your answer can be a mixture of the communication patterns mentioned
above) ____________________________________________________________________________________ ________________________________________________________________________________________
________________________________________________________________________________________ ________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
2) Strategy in Europe:
1. Product development? YES / NO
2. Market development? YES / NO
3. Internal growth? YES / NO
4. Focus on core activities? YES / NO
5. A combination of these strategies? YES / NO
-Which strategy is important for Belgium? Why? __________________________________________________
__________________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
-How are Belgian employees informed about the corporate strategy? ____________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
81
3) The role of the Human resources manager / (preferably head office)
Could you describe your role within the organisation? _________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
4) The policies of communication and information
-Has the organisation established a written policy? How important is such a policy within the
organisation? e.g.: Are various unrelated items often integrated and rationalised by means of written memos? Or do you use other forms of written policy?
_____________________________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
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-Are regional networks also responsible for this policy? Yes/no? (How are regional networks involved?) _______________________________________________________________________
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-Is there a link between formalisation of communication policies and national culture? Why/ Why
not? _____________________________________________________________________________________ ________________________________________________________________________________________
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5) How do you measure the effectiveness of the communication process?
1. Occasional random checks: YES/NO
2. Employee satisfaction surveys: YES/NO
3. Quarterly input surveys mailed to a cross-section of people world-wide: YES/NO
4. Employee and manager questionnaires: YES/NO
-Could you please motivate your choice? ________________________________________________________________________________________
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-Do you use other means to measure the effectiveness of the communication process? ________________________________________________________________________________________
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-To what extent are measures of customer satisfaction, customer loyalty, or the quality and
quantity of service output used in recognizing and rewarding employees? ________________________________________________________________________________________
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6) Decisions and cultures: Decision-making varies with culture.
Does the company take both national and corporate culture into account?
1. Do you work together in international groups to prepare policies? YES/NO
How do you proceed? ________________________________________________________________________________________
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2. Is there a mix of nationalities on the board? YES/NO
3. Could you give other examples, please? ________________________________________________________________________________________
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7) Information and communication policy
1. Within the organisation, do you focus on the importance of enabling „the process of
getting used to the same practises?‟ Yes/no – Why / why not? ________________________________________________________________________________________
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2. In what ways are employees acquainted with financial information (+ what is the expected
coverage of employees?)
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8) Do’s and don’ts of strategic communication with employees in Europe:
communication & attitude
Could you give some important guidelines that represent the way in which strategic
communication with employees in Europe is regarded within your organisation?
Please complete the table below and give some examples of Do’s and Don’ts of strategic
communication.
DO DON’T
(e.g. Practise openness in teamwork) (e.g. Do not hide bad news)
Thank you very much for completing this questionnaire!!
Kind Regards,
xxx
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9 Enclosure 4: interview
Interview with Service Performance & Improvement Coordinator
1. Imai introduced the term Kaizen in 1986 and defines it as “ongoing improvement involving
everyone – top management, managers and workers” (Imai, 1986). What does Kaizen mean to
you?
2. By definition Kaizen-oriented suggestion systems are process-oriented (a focus on gradual
improvements). Could Kaizen be seen as result-oriented too (a focus on financial results)? Can
it be a mixture of both?
3. Kaizen is a process for problem-solving. In order to understand and solve a problem, relevant
data have to be collected and analyzed first. How are data collected, controlled and analyzed
in your organization?
4. Can you give me more information about your company structure? What is Six Sigma? What
is Lean Six Sigma? Which Lean tools are applied in your organization?
5. Every activity is a series of processes, and every process has a deliverer as well as a client.
The axiom -„the next process is the client‟ – distinguishes two kinds of customers: internal
customers (within the company) and external customers (clients in the market). How does this
apply to your organization?
6. The introduction of Kaizen-oriented activities requires a clear management plan. Management
has to prepare an implementation scheme, and demonstrate leadership by executing it within
company. How do managers proceed? Do employees/managers take Kaizen activities
seriously?
7. The final goal of the Kaizen strategy is the simultaneous realisation of QCD (quality, cost and
delivery) by means of organisation wide planning. What are the current goals of your
organization? How are they communicated?
8. “If well aware of their own organization-culture profile, firms will have a higher likelihood of
success when adopting the Kaizen oriented suggestion systems. Lack of national culture
awareness does not seem to be the biggest barrier to a successful implementation: lack of
organization-culture is.” (Recht & Wilderom, 1998). What is your opinion?