CULTURAL INTELLIGENCE and MODERN MANAGEMENT Ten3 M

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Published on February 7, 2008

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Slide1:  Lowering barriers and harnessing the power of diversity By Anastasia Bibikova & Vadim Kotelnikov January 2005 Cultural Intelligence & Modern Management Slide2:  By Anastasia Bibikova & Vadim Kotelnikov www.1000ventures.com 1. Knowing Self and Others 2. Cultural Diversity 3. Organizational Culture 4. Management Models 5. Balancing Your Life and Business Wheels 6. Philosophies: opportunities for achievement Cultural Intelligence & Modern Management Harnessing the Power of Diversity Slide3:  CULTURE Concepts Related to Cultural Intelligence 1000ventures.com © Vadim Kotelnikov Slide4:  Managing Cultural Differences Six Fundamental Patterns of Cultural Difference Communication styles Attitudes towards conflict Approaches to completing tasks Decision-making styles Attitudes towards disclosure Approaches to knowing What’s different? Beliefs Values Perceptions Expectations Attitudes Assumptions What’s hidden below surface? More information at 1000ventures.com: “Managing Cultural Differences” Slide5:  Beliefs, Values, Character: East vs. West East West Living Sustainability What structure is more sustainable?:  Living Sustainability What structure is more sustainable? Physical body consciousness unconscious mind spirituality spirituality unconscious mind consciousness Physical body WEST EAST reason consequence spirituality spirituality Slide7:  Effective Communication Map is not the Territory - Understand Peoples’ Perceptions REALITY Your Mental Map of Reality Your Prospect’s Mental Map of Reality Beliefs Values Beliefs Values Believing is seeing "We see the things not as they are, but as we are" Area of Good Understanding © Vadim Kotelnikov - H.M.Tomlinson More information at 1000ventures.com: “Effective Communication” Slide8:  Managing Cross-Cultural Differences An Example of Different Meanings of the Same Gesture UK & USA = O.K. RUSSIA = ZERO JAPAN = MONEY BRAZIL = INSULT More information at 1000ventures.com: “Managing Cultural Differences” Slide9:  The Tao of Cultural Intelligence Harmony Between Receiving and Giving Side 1000ventures.com © Vadim Kotelnikov Your capability to grow personally through continuous learning and good understanding of diverse cultural heritage, wisdom, and values. Your capability to deal effectively with people from different cultural background and understanding. Yang Active, Creative Inside-Out Yin Passive, Receptive Outside-In Slide10:  Leveraging Diversity Leveraging the Power of Critical Opposites More information at 1000ventures.com: “Harnessing the Power of Diversity” Diversity is a specialized term describing a workplace that includes: people from various backgrounds and cultures, and/or diverse businesses. Ten Steps Towards a Cultural Diversity Strategy Start with good data, through quantifiable research if possible. Build the business case using benchmarks. Find champions within your business. Position the programs as an initiative for the whole business. Start small, but think big: small steps and success builds momentum Pilot each program before rolling out Staff focus groups are a good way to get buy-in. Link each program directly to the organization's stated core values. Don’t assume a huge budget is necessary. Communicate successes. Slide11:  Cultural Intelligence & Modern Management Modern Approaches for Success in the World of Diversity By Anastasia Bibikova & Vadim Kotelnikov www.1000ventures.com 1. Knowing Self and Others 2. Cultural Diversity 3. Organizational Culture 4. Management Models 5. Balancing Your Life and Business Wheels 6. Philosophies: opportunities for achievement Joint Ventures Most common reasons of failure:  Joint Ventures Most common reasons of failure According to a recent survey, only 44% of CEOs of joint ventures characterized their venture as "very successful". The most common causes of failure cited by CEOs are: Slide13:  Cultural Diversity Four Cultural Dimensions Individualism Consensus Hierarchy Directness Slide14:  Source: Harvard Business Review, Feb. 2004 World Economic Forum Competitiveness report 2000 1000ventures.com Culture Dimension Scores for 10 Countries Creativity Index Slide15:  Culture Dimension Scores for 10 Countries Power Distance Based on “Cultures and Organizations: Software of the Mind”, Geert Hofstede,1997 1000ventures.com Slide16:  Culture Dimension Scores for 10 Countries Individualism Based on “Cultures and Organizations: Software of the Mind”, Geert Hofstede,1997 1000ventures.com . Slide17:  Culture Dimension Scores for 10 Countries Masculinity (or Aggressiveness) Based on “Cultures and Organizations: Software of the Mind”, Geert Hofstede,1997 1000ventures.com Slide18:  Culture Dimension Scores for 10 Countries Uncertainty Avoidance Based on “Cultures and Organizations: Software of the Mind”, Geert Hofstede,1997 1000ventures.com Slide19:  Culture Dimension Scores for 10 Countries Long-Term Orientation Based on “Cultures and Organizations: Software of the Mind”, Geert Hofstede,1997 1000ventures.com Slide20:  Cultural Intelligence & Modern Management Culture Dimension Scores for China, Germany, Russia, and USA Based on “Cultures and Organizations: Software of the Mind”, Geert Hofstede,1997, HBS Study, 2004 and World Economic Forum Competitiveness report 2000 1000ventures.com Slide21:  Harnessing the Power of Diversity Building a Winning Systemic Innovation Team 1000ventures.com A Dream Team for the New Era of Systemic Innovation: A Russian An American A Japanese A German A Chinese A Kuwaiti A New Zealander – to generate outside-the-box ideas – to establish a new venture – fast! – to develop a long-term strategy – to organize the process – to carry out the plan – to buy the outcome – to manage cross-cultural differences More information at 1000ventures.com: “Harnessing the Power of Diversity” Slide22:  The Tao of Leveraging Diversity A Managerial Approach Unleashing the Power of Integrated Opposites developing innovative products for diverse customer groups by sharing of diverse experiences and cultural insights of workers creative problem solving by looking at "the same landscape with different eyes" and cross-pollination of ideas leveraging the power of critical opposites to achieve synergy Solving Problems Created by Diversity treating people as individuals acknowledging the special circumstances or particular context that may lead to exclusion for some people or groups of people and working to change that situation developing a culture within which people are valued for the contribution they make. Yin Passive, receptive Yang Active, creative © Vadim Kotelnikov More information at 1000ventures.com: “Harnessing the Power of Diversity” Slide23:  Cultural Intelligence & Modern Management Harnessing the Power of Diversity By Anastasia Bibikova & Vadim Kotelnikov www.1000ventures.com 1. Knowing Self and Others 2. Cultural Diversity 3. Organizational Culture 4. Management Models 5. Balancing Your Life and Business Wheels 6. Philosophies: opportunities for achievement Corporate Culture Adaptive versus Unadaptive Corporate Cultures:  Corporate Culture Adaptive versus Unadaptive Corporate Cultures 1000ventures.com Source: “Corporate Culture and Performance”, Kotter, J.P. and Heskett, J.L., 1992 Slide25:  Leadership Concepts: East vs. West EAST WEST Human Resource Management Japanese vs. American style:  Human Resource Management Japanese vs. American style Japanese firm American firm workforce integration human and organizational capital distribution fixed jobs restrained to certain employee Adapted from H.Isida. Human Resource management in Japan. 2004 Slide27:  Corporate Innovation System & Its 5+1 Core Elements Adapted from: "Relentless Growth", Christopher Meyer Process Leadership & Management Strategic Alignment Organization & People Metrics CULTURE 1000ventures.com West Slide28:  The Power of Meditation Improved Health Among the Workforce Through Meditation Source: Maharishi University of Management 1000ventures.com Physical Complaints Impulsiveness Emotional Instability Tendency towards Neurosis Anxiety East Modern Leadership & Traditional Eastern Leadership Opportunity for Synergy :  Modern Leadership & Traditional Eastern Leadership Opportunity for Synergy Policy Competition Image Techno-logy Profit Supplier Employee Owner Customer Program Principles Results Values Religious merits Self- Love / family Welfare Social duty Communication Entertainment Self- Social care Social Preserve & Harmonize Modern Leadership - West Traditional Leadership - East realization development development Organizational Models East vs. West :  Organizational Models East vs. West Back- Ground B EO- Employee Orientation JS- Job Satisfaction EP- Employee participation LS- Leadership Style LO- Leadership Authoritarian B-Power EO - Submission JS- physical needs LO - Authority EP - Minimum LS- ahead, hard control Patronizing B – recourses LO - money LS- behind; lose-tight EO- security and privileges EP- passive cooperation JS – safety Supportive B – leadership LO - support LS- ahead, medium control EO- work performance EP- motivation based JS– recognition Collegiate B – partnership EO- responsibility LO- teamwork EP- enthusiastic JS – self-realization LS- ahead, light control Orientation Slide31:  By Anastasia Bibikova & Vadim Kotelnikov www.1000ventures.com 1. Knowing Self and Others 2. Cultural Diversity 3. Organizational Culture 4. Management Models 5. Balancing Your Life and Business Wheels 6. Philosophies: opportunities for achievement Cultural Intelligence & Modern Management Harnessing the Power of Diversity East vs. West Management Styles How to Implement, Win and Achieve:  East vs. West Management Styles How to Implement, Win and Achieve Achievement, Winning Implementation EAST WEST Competitive Advantage: USA vs. Japan Manufacturing Strategies Used by U.S. and Japanese Companies :  Competitive Advantage: USA vs. Japan Manufacturing Strategies Used by U.S. and Japanese Companies Slide34:  Strategic THINKING Strategic LEARNING Adapted from “Changing Strategic Direction”, Peter Skat-Rørdam, 2003 Strategic Achievement Thinking × Action × Learning → Synergy 1000ventures.com Strategic ACTION STRATEGIC THINKING Look behind the symptoms Combine intuition and data Recognize the value of synergy Live the life of the customer Balance the short and long term STRATEGIC LEARNING Undertake strategic control Experiment Constantly refine the strategy Learn from mistakes STRATEGIC ACTION Make a choice Take risks Sell the new strategy Calculate the reactions Get the timing right Acquire the appropriate resources West Slide35:  1000ventures.com The Art of Strategic Competition Modern Use of the Sun Tzu’s ‘The Art of War’ (app. 500 B.C.) Adapted from “The Warrior Class”, Crearbridge Publishing, 2001 HEAVEN (Trends over Time) GROUND (Marketplace) THE FIVE KEY ELEMENTS for comparing competitive position:     1. Philosophy People centered Uniting & focusing 2. Heaven Beyond our control Often change 3. Ground Where we fight What we fight for 4. Leader Brave, intelligence, strict Trusting & caring about people 5. Methods Organization, systems, standards Learning & supports METHODS (Organization & Processes) PHILOSOPHY (Corporate Culture & Mission) LEADER (Guidance & Care) East Slide36:  New Management Model Leading Systemic Innovation Managerial Space Cross-functional Team Define what work is required Identify the key interdependencies Parse the innovation subtask to small, interlocking teams with defined leaders Agree on goals, schedule, and accountability Provide resources but stay out of each team’s task unless it is not meeting its major commitments Craft the firm’s overall shape, keep all the subtasks together, and link non-adjacent subtasks as necessary Dismantle Hierarchy & Empower Cross-functional Teams 1000ventures.com Adapted from: “Relentless Growth”, Christopher Meyer, 1998 West Kaizen Job Functions as Perceived by Japanese Managers:  Kaizen Job Functions as Perceived by Japanese Managers Top Management Middle Management Supervisors Workers Innovation Kaizen Maintenance Innovation – drastic improvements in current processes Kaizen – small continuous improvements in current processes Maintenance – activities directed to maintaining current technological, managerial, & operating standards East More information at 1000ventures.com: “Kaizen” Management by Leadership 25 Lessons from Jack Welch:  Management by Leadership 25 Lessons from Jack Welch LEAD MORE, MANAGE LESS Lead Manage less Articulate your vision Simplify Get less formal BUILD A WINNING ORGANIZATION Get rid of bureaucracy Eliminate boundaries Put values first Cultivate leaders Create learning culture HARNESS YOUR PEOPLE Involve everybody Make everybody a team player Stretch Instill confidence Have fun BUILD THE MARKET-LEADING COMPANY Live speed Behave like a small company Energize others Face reality See change as an opportunity Get good ideas from everywhere Follow up Be number 1 or number 2 Live quality Constantly focus on innovation More information at 1000ventures.com : “25 Lessons from Jack Welch” West Management by Consciousness Values-based Management Steps and Content :  Management by Consciousness Values-based Management Steps and Content . . Interiorizing the management Controlling vs Self-management Formulating attitude to business Individual vs Organization/Skills vs. Vlues Aspiration Concentration Self- Introspection Within-to- without principle Core Beliefs 1. The key is within! 2.Technology makes things possible, but it is the people who make it happen 3. Only in peace one can know what is the best thing to do 4. What is within, that is without. 6. Consciousness cant be borrowed or imparted ready-made 7. Intellect can go to moon, but the heart can conquer the world 1 2 3 Humanizing the organization Worker vs Man; Self vs Others East More information at 1000ventures.com: ”Management by Consciousness” Slide40:  Fast thinking Fast decision- making Fast to market Sustaining speed Forecasting & road-mapping Anticipating Spotting trends Brainstorming Putting every idea through the “grinder” Letting the best idea win Setting rules Getting rid of bureaucracy Shuffling portfolios Unpacking proposals Constantly reassessing Launching a crusade Owning competitive advantage Getting suppliers move fast Staying beneath the radar Institutionalizing innovation Simplicity Boundarylessness Self-confidence & growth attitude Financial flexibility Business Process Mgmt System Managing creativity Staying close to the customer Adapted from “It’s not be big that eat the small…It’s the fast that eats the slow”, J.Jennings & L.Haughton Moving With Speed Opportunity-driven Business Development West More information at 1000ventures.com: “Moving with Speed” Slide41:  Growing Business Through Spinouts Bunsha – a Japanese Company Division Concept 1000ventures.com Bigger is NOT better. Once a company is successful, divide it if you don’t want bureaucracy and complacency to set in. Authors and practitioners of the concept: Kuniyasu Sakai and Hiroshi Sekiyama, Bunsha Group East Slide42:  By Anastasia Bibikova & Vadim Kotelnikov www.1000ventures.com 1. Knowing Self and Others 2. Cultural Diversity 3. Organizational Culture 4. Management Models 5. Balancing Your Life and Business Wheels 6. Philosophies: opportunities for achievement Cultural Intelligence & Modern Management Harnessing the Power of Diversity Slide43:  The Power of the Wheel 1000ventures.com The Wheel of Teaching The Wheel of Life The Circle of Continuous Perfection The yin-yang symbol stands for the universe composed of yin and yang, which form a whole only in a balanced combination. Yin and Yang In Zen, the circle represents the process of continuous perfection, leading to a self with a difference. In Buddhism, the Wheel of Dharma symbolizes the completeness of the Buddha’s teaching. In Tibet, the Wheel of Life is a presentation of the Buddhist teaching on the chain of dependence and impermanence of cyclic existence. Slide44:  Balancing Your Wheel of Life Family & Friends Achievement & Fulfillment Personal Development Physical Environment Work Finance Health NLP Self-Coaching Draw a line across each category area that reflects your satisfaction with this area of your life right now. Making Changes in Your Life Balance Ask yourself: “What do I want?” Doublecheck: “Is that what I really want?” “What am I not paying enough attention to in my life right now?” “What is the easiest first step I can take now in the direction of what I want?” Review your personal balance regularly Adapted from: “NLP Coaching”, Ian McDermott and Wendy Jago 1000ventures.com Love Fun & Recreation Slide45:  The Wheel of Life In the Eastern and Western Philosophy 1000ventures.com © Vadim Kotelnikov Business Systems The Balanced Approach:  Business Systems The Balanced Approach YOUR BUSINESS WHEEL An unbalanced wheel will roll neither fast nor far Case in Point Balancing 10 resources between 2 perspectives Case A: 10 x 0 = 0 Case B: 9 x 1 = 9 Case C: 8 x 2 = 16 Case D: 7 x 3 = 21 Case E: 6 x 4 = 24 Case F: 5 x 5 = 25 Customer STRATEGY Innovation Finance Processes More information at 1000ventures.com: “Balanced Approach to Business Systems” Slide47:  The Tao of Effective Management Harmony between Brain-storming and Brain-stilling 1000ventures.com © Vadim Kotelnikov Business Effectiveness ►Taking the bird’s-eye view of your business strategies ►Building and balancing your business system ►Harmonizing men, material and methods to achieve sustainable growth, human development, and social benefit Yang Active, Creative Yin Passive, Receptive Business Efficiency ►Spotting and pursuing opportunities ►Making fast decisions and implementing them under the time pressure ►Innovating and creating outside-the-box solutions Working IN Your Business Brain-storming Working ON Your Business Brain-stilling Slide48:  LEARN CREATE SYNERGIZE SIMPLIFY 1000ventures.com © Vadim Kotelnikov Your Wheel of Knowledge Management Five Interwoven Functions & Enabling Actions APPLY Manage ideas Establish innovation system Energize people Slide49:  Your Wheel of Innovation: Systemic Approach Seven Interwoven Areas of Innovation BUSINESS innovation © Vadim Kotelnikov ORGANIZATIONAL innovation PRODUCT innovation PROCESS innovation MARKETING innovation TECHNOLOGY innovation STRATEGY innovation More information at 1000ventures.com: “Systemic Innovation” Slide50:  MARKETING PARTNERING RETAINING SELLING 1000ventures.com © Vadim Kotelnikov Your Wheel of Marketing Creating, Winning, and Retaining Customers Getting Customer Feedback Aligning Strategies Co-Innovating with Customers Creating Value Branding Differentiating Communicating Influencing Observing Slide51:  Your Wheel of Business Evolution Managing Organizational Change 8. Performance Measures Political Economic Social Technological Adapted from: “Managing Complexity”, Robin Wood Strategic success factors Mission critical variables 1. Business Environment Competitive landscapes and dynamics Games, roles & players 2. Business Ecosystem 1000ventures.com 3. Business Design Business model Business processes 4. Leadership Style Strategic leadership Organizational development 5. Organizational Values Core values Rules of the internal game 6. Management Process Direction Innovation & operations Learning & design 7. Knowledge Management Systems Knowledge-sharing Interpretive frameworks Information systems Slide52:  The Tao of Business Success Leveraging Diversities and Finding the Delicate Balance © Vadim Kotelnikov More information at 1000ventures.com: “The Tao of Business Success” Slide53:  By Anastasia Bibikova & Vadim Kotelnikov www.1000ventures.com 1. Knowing Self and Others 2. Cultural Diversity 3. Organizational Culture 4. Management Models 5. Balancing Your Life and Business Wheels 6. Philosophies: opportunities for achievement Cultural Intelligence & Modern Management Harnessing the Power of Diversity Christianity Philosophy of Love and Equality:  Christianity Philosophy of Love and Equality Love Compassion Self-Control Blessed are the pure in spirit, for theirs is the Kingdom of Heaven. Blessed are the merciful, for they shall obtain mercy… Faith Islam and its values Massage of peace and balance:  Islam and its values Massage of peace and balance Five Pillars of Islam essential duties of every faithful Muslim. Belief in one God, Allah and Muhammad – his prophet A prayer five times a day Giving alms Fasting during the holy month of Ramadan 5) The annual pilgrimage (hajj) to Mecca once in a lifetime - "provided one can afford it" Hinduism:  Hinduism The concept of four ashramas The concept of three vargas Balance Balance Business success Love/family relationships Social communication Learning Self-realization in society Teaching Silent analyzing Confucianism Balance between individual variety and social harmony:  Confucianism Balance between individual variety and social harmony BALANCE between individual variety and social harmony Jen - humaneness, love of fellow men Li - morality, uprightness Chi - virtuous life through Buddhism Balance through Interdependence :  Buddhism Balance through Interdependence Four Noble Truths - All life is suffering - The cause of suffering is craving, false views and conceit - The cessation of suffering is possible through the elimination of craving - Elimination of craving is possible through “eightfold path” The Wheel of Dharma The Wheel of Life The Wheel of Teaching Taoism Integrity of Opposites:  Taoism Integrity of Opposites Yin & Yang Feminine Passive Receptive Dark Soft Masculine Active Creative Bright Hard Slide60:  THANK YOU! 1. Knowing Self and Others 2. Cultural Diversity 3. Organizational Culture 4. Management Models 5. Balancing Your Life and Business Wheels 6. Philosophies: opportunities for achievement © 2005 Vadim Kotelnikov, and Anastasia Bibikova, www.1000ventures.com, January 2005 Cultural Intelligence & Modern Management Harnessing the Power of Diversity Slide61:  Support Information To read Slides with Executive Summaries, view / print the Mini-course as Note Pages Related web-based chapters of Ten3 Business e-Coach MANAGING CROSS-CULTURAL DIFEFRENCES  HARNESSING THE POWER OF DIVERSITY End-user License Agreement: it’s below this slide - view it as Note Pages Related Products/Services from Ten3 team: Products Services Training Would you like to make any comments regarding this Mini-course? Please send us e-mail © 2005 Vadim Kotelnikov, and Anastasia Bibikova, www.1000ventures.com, January 2005 Cultural Intelligence & Modern Management Harnessing the Power of Diversity

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