Download pdf - Managing Cross-Cultural Clashes

Managing Cross-Cultural Clashes

October 24, 2008

Agenda

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I. The World is Changing

II. SmithStreetSolutions: Uniquely Multicultural

a. Multinational Leaders

b. Multinational Staff

c. Multinational Clients

d. Multinational Management Philosophies

e. Multinational Projects

III. Issues We Face

IV. How We Solve the Challenges of Multiculturalism

V. Selected Members at SmithStreetSolutions

VI. The Future


Globalization – the growing integration of economies and societies around the world –has been one of the hottest topics in international economics over the past few years.

Globalization is characterized by four main economic flows:

� Goods and services, e.g. exports plus imports as a proportion of national income or per capita of population

� Labor/people, e.g. net migration rates; inward or outward migration flows, weighted by population

� Capital, e.g. inward or outward direct investment as a proportion of national income or per head of population

� Technology, e.g. international research & development flows; proportion of populations (and rates of change thereof) using particular inventions (especially 'factor-neutral' technological advances such as the telephone, motorcar, broadband)

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a. The Past - Global Manufacturing

Twenty years ago, manufacturing was widely dispersed around the world, but the employment of talent was only done locally.

Convenient TrafficConvenient TrafficConvenient Traffic

Advanced logistics network shortened the distance between countries

Energy ExploitationEnergy ExploitationEnergy Exploitation

Optimized energy resource structures and fully utilized global resources

Pipelining ProductionPipelining ProductionPipelining Production

Standardized operations to improve work efficiency

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b. The Globalization of Talent and Information

In the past few years, talent has become utilized across regional barriers

Strengthens cooperation , furthers communication

Communication Technology

Communication Communication TechnologyTechnology

Enables communication and information sharing

Computer ScienceComputer ScienceComputer Science

Talent accessibility

Talent FlowTalent FlowTalent Flow

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c. The Changing Face of Globalization

There are two important trends which have altered the nature of globalization.

Continual increases in oil prices

Development of information and communication technology

Increases in transportation costs

Decreases in information flow costs

Manufacturing has become more localized

Outsourcing has become more prosperous

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Agenda

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III. Issues We Face



VI. The Future


The cultural origins of top management influence their management style. SmithStreetSolutions’ top management has a strong international background.

Franklin Yao is CEO of SmithStreetSolutions. Franklin was born in Toronto, Canada, and spent his teenage years in Hong Kong. Franklin received a B.A. in Economics and in East Asian Studies from Yale University. Franklin has spent his career advising Financial Services, Insurance, and Professional Services organizations in both North America and Asia. Franklin worked for two companies with Indian offices: Opera Solutions, where he was the Assistant General Manager, and Inductis.

Robin Kerawala is Chief Client Officer of SmithStreetSolutions. He was born in Hong Kong from a Japanese mother and an Indian father. Robin graduated from Brown University with a B.A. in Economics A career consultant, Robin has extensive experience advising his North American clients in the areas of strategic procurement and outsourcing., Robin worked as a consultant at Operations Management Group, Cap Gemini Ernst & Young, and Silver Oak Solutions..

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SmithStreet’s employees come from all over the world, and therefore represent a wide variety of cultural values and characteristics.

Tiphaine Camus is a Senior Associate at SmithStreetSolutions. She joined from Shanghai University of Finances and Economics where she was teaching French and English. Tiphaine speaks English, French, Mandarin, and Spanish, and she holds a B.A. in Chinese studies from Bordeaux University.

Michael Yeo is a Research Manager at SmithStreetSolutions. Michael received his B.A. in Accounting & Economics from the University of Reading. Previously, Michael was an External Auditor at Ernst and Young and an Internal Auditor at Shell, where he helped implement their SOX plan throughout the whole of Asia. Apart from his native English, Michael also speaks Mandarin, Cantonese and Hokkien.

Sudeshna Dey is a Project Manager at SmithStreetSolutions. She has extensive marketing and sales experience in a Pharmaceutical Company in India where she served as a Sales Manager and a Product Manager ( marketing). She also has experience at a financial advisory firm in Shanghai. Sudeshna holds a B.Sc. degree from the University of Calcutta, and received an M.B.A. from Utkal University in India.

Moritz Wang is a Senior Associate at SmithStreetSolutions. Moritz received an M.A. in the History Of Economic Thoughts from Fudan University and worked as a manager of the school cafeteria at Fudan. He wrote his masters thesis on the economic philosophy of Liang Qichao

Cynthia Zhang is a Senior Associate at SmithStreetSolutions. Previously, Cynthia taught Chinese as a foreign language at the International Culture Exchange College, SHISU. Cynthia received a B.A. in Chinese Education from Shandong Normal University and an M.A. in Chinese Modern Literature from Shanghai International Studies University

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Nathan worked at UBS Investment Bank in New York, where he focused on real estate debt and equity investments. At UBS, Nathan also worked in the Financial Sponsors/Leveraged Finance group and executed transactions totaling $10+ billion in financial services, telecom, tech and media. Nathan holds a B.A. (magna cum laude) in Economics from UCLA, where he graduated Phi Beta Kappa.


SmithStreetSolutions maintains an international client base, and interacts with a wide variety of differing business cultures.

Consumer Marketing (India) Pvt. Ltd.

Our office locationsOur clients

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LondonNew York New Delhi Shanghai

24 hours / 7 days Management


Combining different ideas and techniques inevitably sparks innovation, improvement, and the creation of high standards.

� Principles of decency, truth and integrity

� Intentional focus on improving the well-being of people in the workplace

� Sensitivity to face

� Consensus

� Importance of relationships

� Encourage to take risks and try new things

� American openness

� Questioning

� Creativity

� Innovation

� Openness to change

Confucian Dynamics: Western Dynamics:

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High High StandardsStandards

Database Building

Data Collection

Client has a wide range of data from worldwide sources

� Auction houses

� Museums

� Galleries

� Publications


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New York Hotel Market Research

What we’ve doneWhat we’ve done

NYC Hotel Industry Analysis

NYC Hotel Industry Analysis

Hotel Categories Comparison

Hotel Categories Comparison

Consumer Surveys

Consumer Surveys

Limited-Service Hotel Analysis

Limited-Service Hotel Analysis

Extended Stay Hotel Analysis

Extended Stay Hotel Analysis

Full-service Hotel Analysis

Full-service Hotel Analysis

Hotel Case Studies

Hotel Case Studies

OutcomeOutcome

With the help of our services, the client decided to enter the target market and gave us a follow-up project involving design of the company logo, company name creation and the formation of a market-entry strategy.

With the help of our services, the client decided to enter the target market and gave us a follow-up project involving design of the company logo, company name creation and the formation of a market-entry strategy.

Data Categorizing

Collected information was categorized according to the specifics of MutualArt’s project

� Upcoming auction

� Auction catalogues

� Artist

� Upcoming events

� News

� Features

� Press release

� Collection

Databases for data and pictures were established flexibly

� Excel

� Access

� html

Database Maintenance

� Periodic update

� Database enrichment

� Data source enrichment

SmithStreetSolutions regularly engages in multinational projects for its clients.

Agenda

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III. Issues We Face



VI. The Future

III.Issues We Face (1/3)

Differing cultural expectations can cause miscommunication and conflict within the workplace.

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� Misunderstandings

� Different communication styles

� Different values


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� Different work standards

� Concept of time

� Quality

� Responsiveness to management



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� Lack of communication between the

Chinese and expat staff

� Language barriers

� Fear of the unknown

� Tendency for Chinese and expats

to form separate cliques


Agenda

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III. Issues We Face



VI. The Future

IV.How We Solve the Challenges of Multiculturalism

Our corporate philosophy, “Multiculturalism helps us to bridge cultures and to innovate,”is incorporated into both our firm’s development and our daily work.

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Area Philosophy Goals

� There is a large multicultural pool of talented labor

� Local entry-level candidates seek experience in a multicultural work environment

� A significant pool of expatriate labor wants direct exposure to local language and culture

High potential candidates; Employee diversity

RecruitingRecruiting



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� Being culturally agnostic, we believe that there is more than one right way to do things

� SmithStreet management strives to combine the best aspects of all cultures

� Chinese / English language training and cultural training

� Chinese employees sent to our US office

Employee development

TrainingTraining



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� Different skill sets from diverse cultures & professional experiences are applied to our work

� Diverse workgroups

� Local and expat management

Better client service

QualityQuality



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� An environment incorporating multiculturalism fosters cultural awareness

� Office decorations incorporate multiple cultures

� Social activities facilitate cross-cultural communication

Better internal communication and mutual understanding

EnvironmentEnvironment

Agenda

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III. Issues We Face



VI. The Future

V. Selected Members at SmithStreetSolutions (1/2)

Background

� B.A. in Chinese Studies

� In China for over 5 years

� Can speak 4 languages

� Former university teacher

Tiphaine Camus

Experience atSmithStreet� Senior Associate� English and

Cultural Training� Corporate Culture

Challenges and Issues Encountered� Miscommunication� Misunderstanding

colleagues from different cultural backgrounds

Solutions

� Listen� Be tolerant� Respect others

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V. Selected Members at SmithStreetSolutions (2/2)

Background

� M.A. in Chinese Literature and language

� Taught Chinese as a foreign language for 2 years

Cynthia Zhang

Experience atSmithStreet� Senior Associate� Learning different

cultures from coworkers

� Was trained in the New York office

Challenges and Issues Encountered� Misunderstandings

between expats and Chinese colleagues

Solutions

� Respect others� Stress the

importance of communication

� Learn from other cultures

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Agenda

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III. Issues We Face



VI. The Future

VI.The Future

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What is the future of globalization and innovation?

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