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- 1. Forging Successful Global Relationships Karen L. Cornelius President KLC Associates Jeffrey T. Walsh Executive Vice President KLC Associates
- 2. Whats Going Wrong ? In your pairs or trios, identify some things you have experienced or seen go wrong among international partnerships.
- 3. I. Primary Failure Modes in International Business Relationships Stuff It Syndrome Predictable group level dynamics issues:
- 4. I. Primary Failure Modes in International Business Relationships Stuff It Syndrome Predictable group level dynamics issues: An inevitable consequence of headquarters, or one partner, fully developing and attempting to implement a plan or process across other partners without building relationships and involving them. Stuff It Syndrome is rarely overt. Symptoms: Confusion We dont understand Foot dragging helplessness Find the flaw Insurmountable problems Passive resistance
- 5. I. Primary Failure Modes in International Business Relationships Predictable group level dynamics issues: Dream Teams at the push of a button Global
- 6. I. Primary Failure Modes in International Business Relationships Predictable group level dynamics issues: Dream Teams .are just a dream. The reality of distance dynamics: Geographically separated organizational units or partners who never spend time together building relationships will inevitably develop dynamics that can stall or de-rail the initiative. Us and them Sub-cultures Conflicting agendas Finger pointing Distorted communications Suspicion Myths and rumors
- 7. Understanding National and Corporate Cultural Differences . What they are Where and when they are important in building a business relationship What can go wrong II. Forging Successful Global Relationships
- 8. What Is It ? National Culture is expressed through what is considered "polite, appropriate and civilized behavior" in that country National Culture Forging Successful Global Relationships
- 9. National Culture Why is it a problem ? National (as well as Corporate) Culture is largely unconscious. It provides the framework and 'scripts' for expected behavior and practices in virtually all settings. When potential partners deviate from these expectations, they are often judged as odd, rude, incompetent and/or untrustworthy Forging Successful Global Relationships
- 10. National Culture Three Key Dimensions for Success Is important for getting your foot in the doorand not offending you partner until the deal is signed Forging Successful Global Relationships
- 11. National Culture Managing introductions and first meetings Culture is expressed in: Protocol Degree of formality How to show respect Exchanging business cards Purpose and location of meetings Seating Introductions Lets look at some examples Forging Successful Global Relationships
- 12. National Culture Managing introductions and first meetings: What goes wrong? Introductions: Or Forging Successful Global Relationships
- 13. Forging Successful Global Relationships National Culture Managing introductions and first meetings : What goes wrong? First Meetings Formality Seating Tone Or
- 14. Forging Successful Global Relationships National Culture Managing introductions and first meetings: What goes wrong? Communications Or
- 15. Forging Successful Global Relationships National Culture 2. Knowing when and how to get down to business Culture is expressed in: Number of meetings before business can be discussed Social interactions Entertainment What? Where? How much? How long? Meet the family Gift giving What? How many? When? etc . Personal disclosure How much? How soon? When? Where?
- 16. Forging Successful Global Relationships National Culture 2. Knowing when and how to get down to business: What goes wrong? The basic issues for Americans (and many Europeans) are: They want to race to the finish line , doing the deal as efficiently as possible -- often offending their partners. In cultures that value relationships and harmony, partners will not tell Americans something is wrong A whole lot of things (So learn about your potential partners culture)
- 17. Forging Successful Global Relationships National Culture 3. How to start framing a business agreement Culture is expressed in: The steps used in building the agreement Communications
- 18. Forging Successful Global Relationships National Culture 3. How to start framing a business agreement What goes wrong? The steps: Getting high level, conceptual agreement, then working out details Or Building confidence through agreeing on the details and building up to the concept
- 19. Communications Listen for the Soft No That could be possible Its a good idea Mmmmmmm That may be difficult Our people are very busy, now perhaps 1 st quarter 3. How to start framing a business agreement What goes wrong? Forging Successful Global Relationships National Culture
- 20. National Culture Now, lets assume you have been successful in the three key dimensions for getting your foot in the door and not offending your partner until they have signed: Managing introductions and first meetings Knowing when and how to get down to business How to frame the agreement When the deal is signed, and you actively begin business with your partner , Corporate Cultural Differences become critically important Forging Successful Global Relationships
- 21. Corporate Cultural Differences CCDs Research shows that between 60% to 80% of international partnerships and joint ventures either fail outright or produce disappointing results. The number one cause is CCDs that are not recognized and managed. Forging Successful Global Relationships
- 22. Corporate Cultural Difference (CCDs) What Are They ? Usually unconscious Reflect some or many elements of National Culture Embedded in the companys systems, processes, policies, leadership styles and behaviors Unwritten Rules of the Road for how things are done Forging Successful Global Relationships
- 23. Corporate Cultural Difference (CCDs) What happens ? The problem with CCDs stems from the fact that partners with different corporate cultures will Assume that their way is the right/only way of doing things , and that everyone else operates the same way . See and interpret behavior and motivation of partners from their own corporate cultural lens. Forging Successful Global Relationships
- 24. Corporate Cultural Difference (CCDs) Our research has identified 12 organization dimensions in which corporate cultural differences are expressed that are most likely to derail international partnerships or supplier relationships. Forging Successful Global Relationships
- 25. Corporate Cultural Difference (CCDs ) The Top Five. Leadership styles, assumptions, and behaviors Decision-making processes Existence and role of hierarchy Communications processes Roles & Responsibilities: the Hows Forging Successful Global Relationships
- 26. Leadership styles, assumptions, and behaviors Some Examples Conflict and crossed signals in an English/American/Japanese joint venture
- 27. American and English perceptions were that the Japanese leader was weak, incompetent and completely disinterested in the project Japanese perceptions were that the American and English subordinates must be incompetent and untrustworthy, or their managers would not drive the agenda and dominate discussions Perceptions Leadership styles, assumptions, and behaviors Some Examples Leadership styles, assumptions, and behaviors Some Examples Conflict and crossed signals in an English/American/Japanese joint venture
- 28. Decision-making and existence and role of hierarchy Some Examples Conflict and failure to arrive at agreements and decisions in an English/Swede joint venture
- 29. English perceptions were that the Swedes were blind-siding them and were not committed to the Joint venture Also that Swedish decision-making was ineffective as nothing was implemented Swedish perceptions were that The English considered Swede subject matter experts as worthless-- since they excluded their input; Swede management were shocked and insulted that no one had consulted them prior to decision-making meetings Perceptions Decision-making and existence and role of hierarchy Some Examples Conflict and failure to arrive at agreements and decisions in an English/Swede joint venture
- 30. Building collaborative relationships.. that work from the start Creating alignment It is essential for key parties to meet face-to-face to understand in the same way and agree what they are trying to collectively achieve whether it is long term, strategic goals or specific project goals. Doing it right: Forging Successful Global Relationships
- 31. Creating alignment Building collaborative relationships.. that work from the start Partners collaboratively develop a common Vision, goals, strategies and design statements for the future state they want to achieve. How? Action without Vision is a nightmare Forging Successful Global Relationships
- 32. Building collaborative relationships.. that work from the start Business goals and outcomes Creating alignment The Vision should include : Product or service goals Forging Successful Global Relationships
- 33. Building collaborative relationships.. that work from the start But also operating principles by which the partners will collaboratively work together. Creating alignment These must be more than words on a paper. They must drive action and guide behaviors! Forging Successful Global Relationships
- 34. Building collaborative relationships.. that work from the start Creating alignment Design Statements describe what your future state outcomes should look like and be able to do. Forging Successful Global Relationships
- 35. Managing Corporate Cultural Differences It is essential for key parties at different levels of the involved organizations to meet face-to-face to surface, understand and agree how to manage and leverage CCDs Particularly in the 5 key dimensions Building collaborative relationships.. that work from the start Forging Successful Global Relationships
- 36. Going Slow to Go Fast: Building Shared Tacit Knowledge Building collaborative relationships.. that work from the start Employees of the partners who must collaborate on processes and projects will require time to fully understand -- for each partner -- how we do that here, not just what the operating manuals say. Forging Successful Global Relationships
- 37. Ford Global Core Engineering Teams Purpose: Identify and achieve enterprise level cost reductions through global commonality, synergies, and complexity reduction (e.g., reducing the total number of engines, powertrains, platforms and other systems and components produced by the various partners) Partners: FoE, FNA, Mazda, Volvo, Jaguar & Land Rover, FMexico, FBrazil, Ford Asia Pacific Building collaborative relationships.. that work from the start Forging Successful Global Relationships
- 38. Ford Global Core Engineering Teams History: Prior to our interventions, 12 Core Teams totally derailed or fell far short of delivering cost targets. Project deadlines were missed, and milestones were failed. Success: Learning from our approaches that got these teams back on track, our recommended strategies were implemented in the Core Team kick-off process. All have been successful, effective teams in terms of: Creative and innovative technical solutions Meeting deadlines/passing milestones Achieving or exceeding goals and targets Building collaborative relationships.. that work from the start Forging Successful Global Relationships
- 39. Conclusions Building collaborative relationships.. that work from the start Forging Successful Global Relationships
- 40. Forging Successful Global Relationships Karen L. Cornelius President KLC Associates Jeffrey T. Walsh Executive Vice President KLC Associates