knowledge management consultancy in china
TRANSCRIPT
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Knowledge Management Consultancy in China
Derek Mitchell International Business Technion Multi-Cultural Team Project Atlanta Module-Fall Semester 2011
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Team Introduction & Cultural Analysis• Team Introduction• Team Process• Cultural Comparisons• Chinese Culture• Chinese Business Culture
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Derek MitchellFrom USA, 30 years oldSingle and full-time student in
Management programLives in Atlanta, Georgia
Likes traveling and music
Team Introduction
Faisal NasirFrom Pakistan, 33 years old
Married with 2 children and lives in Seattle, WAWorks full-time at Microsoft and Enrolled in part-time MBA at University of Washington, Seattle.
Likes reading, playing cricket, volleyball and chess
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Silvia Coimbra
From Portugal, 21 years old. Studying full-time and enrolled
in Master in International Management program in Spain.
Likes dancing , music, traveling
Team Introduction
Bas Van der Woert
From Netherlands, 21 years old Working full-time in ABN AMRO
bank and enrolled in transfer program in Management in Italy
Likes traveling and going out with friends
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Team Process
Initial bond in the group: life
and family
Flexible and enthusiastic
team members
Following instructions and planning
Decision making: open discussion and
consensus
Coordination and mutual
respect
25% contribution of
each team member
Good time management
Learning about international culture and business
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Cultural Comparisons
Dominant Traits
Very Multicultural
Pride in history,
religion and culture
Love discounts
Extremely patriotic
Pride in history,
religion and culture
Social Life
Enjoy being average:
don’t like attention
Fond of social
gatherings and festivals
“Café Culture”
Prevalent club and bar
culture
Religious and Cultural
festivals and gatherings
Work Life Hard workers
Loyal and passionate workers
Entrepreneurial Spirit
Difficulty balancing work and
personal life
Loyal and Passionate
workers
Family Life
Mediocre sense of family
Patriarchal Strong sense of family
Moderate sense of family
Strong sense of family and
family hierarchy
Hobbies/Leisure
SoccerHockey is the
national sport
Sports: football is
most popular
Sports enthusiasts
Dedicated to traditional sports and
competitions
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Chinese Culture
High Context
Collectivism
Religion
Face
Indirect, implicit communication Information embedded in non-verbal cues, relationships,
situations and personal involvement Caters to in-group (similar experiences and expectations)
Community is valued over the individual Promotes in-groups and group reliance
Taoism: emphasizes spiritual harmony with the individual and harmonious relationships
Manifest as aversion to conflict, preservation of proper demeanor and ‘face’
Roughly translates as good reputation, respect or honor Four categories
Lessened through action or deed and having been exposed Given through compliments and respect Developed through experience-showing wisdom by avoiding mistakes Compliments made to a third party
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Chinese Business Culture
Literally translates as relationships Guanxi is the most vital aspect of Chinese business culture Chinese prefer to deal with those they know and trust Time and effort must be invested into developing a relationship
before business is conducted and is an ongoing process
Exchanging gifts is normal part of business in China Business gifts are viewed as debts to be repaid Must be given for a reason and in front of a witness
Guanxi
Gift Giving
Etiquette
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Chinese Business Culture
Work under close supervision Extreme dependence on leadership
Inequality accepted Hierarchy needed
Superiors often inaccessible Power holders have privileges
Punctuality is vital as lateness is perceived as insult Meetings should include a period of small talk
Do thorough research before entering a meeting or negotiation as your Chinese counterpart will meticulously plan and research your business
Be patient, never show anger or frustration-negotiations may take time due to several factors
Lack of urgency Simultaneous negotiations Decision makers are not confident
Meetings &
Negotiations
High Power
Distance
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Cultural Comparisons
Hofstede Model
Dimensions
Individualism 78 10 22 91 21
Power Distance 33 50 60 40 63
Uncertainty Avoidance 50 67 95 46 49
Masculinity 10 48 26 62 51
Long Term Orientation 40 5 2 29 118
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Knowledge Management Systems• Knowledge Management
• The Business Proposal-Knowledge Management Systems
• Human Resources in China
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Knowledge Management
Strategies and processes designed to identify, capture, structure, value, leverage and share an organization's intellectual asset to enhance its performance and competitiveness. KM is based on two critical activities: 1. Capture and documentation of
individual explicit & tacit knowledge and 2. Its dissemination within the organization
Source: www.thebusinessdictionary.com
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Business Proposal
Knowledge Management Systems A consulting company
Development of KMS, implementation and coaching, keeping in mind the nature and culture of the business
Why Knowledge management?
Support Chinese corporation development Retain that knowledge so that it can be reused Create new knowledge by promoting communication between employees KM can create competitive advantage in practically any given industry
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Business ProposalHuman Resources in China
Collectivism
Good of many over good of
individual
High employer loyalty
Dependence on leadership
Close supervision
Relationships
Sharing
Chinese employees characteristics create the perfect environment to implement KM systems. Implementation should be top-bottom. Importance of measurement in order to evaluate performance over time. We will have a Chinese partner in order to help us develop relationships with Chinese firms.
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Business Fit Analysis
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Business Fit Analysis
Not a unique idea in USAUSA has a very mature Corporate
portfolios with adequate knowledge management processes
Businesses and people understand the importance of knowledge management due to education and awareness
Power differences are low between government and people so it is easier to setup direct contracts with businesses and companies.
Implementation will not be difficult due to workforce availability and good legal system
Low collectivism will increase our advertising and operation costs to complete work and/or expand the business
Industry in general is weak or still developing so demand would be low in the beginning
High power gaps between Government, elite class and public. Contracts with Government will be required.
Workforce availability is adequate in main cities and literacy in major cities like Lahore, Karachi, Islamabad is high
Long term orientation is low and local industry is not mature so difficult to develop long term customer relationships and risk is high.
High uncertainty avoidance will help in selling the idea of knowledge management
Low long-term orientation can negatively impact the demand for business
USA Pakistan
VS.
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Business Fit Analysis
Industry in general is weak or still developing so demand would be low in the beginning
Lack of strong legal system may hinder enforcing contracts
Coalition with government can help in enforcing business model on industry due to power gaps
Workforce availability is adequate in main cities
Portuguese people are humble and loyal and can be great customers
Low long-term orientation will make it difficult to sell the idea to local industry
High collectivism will make it easier to expand business once we get few main customers on board
Easier to launch the business Long history of international trade and
associations Close-knit business community so
easier to expand customer base Extremely direct in their
communication and professional in their business
Promotes smooth customer interaction and makes it easier to develop and maintain internal processes and local employees
Decisions are often consensus-driven and power differences are not high
Uncertainty avoidance is not low and individualism is high so efficiency of individual workers is good
Good legal system to enforce contracts
Portugal Netherlands
VS.
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Cultural Advantages and Best Practices
Advantages Best PracticesInvest time to build adequate “guanxi”
Presenting counterparts with
appropriates gifts
Adjust to high context communication
style
Must communicate effectively to build
“guanxi”
Exceptional work ethic and
professional demeanor to increase and
preserve “face”
Loyal employees due to collectivist
attitude and leadership dependence
Long-term business orientation-
emphasizes stability and consistency in
business practices
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Validating the InformationJos van der Woert - Businessman in China and [email protected]“Knowledge management allows to enhance continuity and enables the organization to capitalize on brain trust and knowledge. The system allowed us to retain critical knowledge during a period of high turnover and internal change”.
Desmond Thio - Lived in China, Singapore and Japan [email protected]“By retaining the historical knowledge and experience of each individual it provides a collective asset for the organization as a whole, creating an “organizational conscience. It ultimately became a competitive advantage in an increasingly complex business environment that was becoming more and more challenging to our competitors”.
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Knowledge Management Systems
Contact Info. Derek Mitchell
[email protected] www.linkedin.com/in/dereklmitchell