Archive for October, 2009

The Culture of Auto Industries

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Some have called the failure of the American car industry a result of a learning disorder: GM, Ford and Chrysler could not combine the best practices of world’s auto industry to stay afloat. Time magazine has referred to a symbolic lesson GM missed, while all the signs for how to increase factory productivity were there.

A GM-owned plant was established in 1984 in collaboration with Toyota’s production process and local union workers. The plant had been one of GM’s worst; the Toyota system made it one of GM’s best. Toyota’s corporate culture placed more trust in the laborers on the factory floor, which is something GM apparently couldn’t apply company-wide.

See the article that details this and more here.

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Traveling Abroad for Health

The Economist has reported an increase in Americans taking their money abroad in search of health care.

The SF Gate reported on this earlier in the summer, finding patients were going to places like Thailand and Mexico for surgeries that cost as much as 90% less than US prices.

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JAL CEO Cuts Salary

The CEO of Japan Airlines drastically cut his salary, which is now less than what JAL’s pilots are paid, in order to slash costs and weather the upcoming year. He is shown in this interesting clip from CNN eating amongst the rest of the company’s employees in the cafeteria and taking public transport to work. Would CEOs in other countries act this way? Why is this?

Japanese culture is highly group-oriented, which means even leaders are subject to economic hardship. The behavior of corporate leaders in the US and other Western countries could be explained by these countries’ emphasis on individual rights and freedoms. Understanding the root of these actions could greatly impact the success of business during recessions. Enacting changes like these will definitely be culturally determined, but how often do solid cultures, like those surrounding business practices, change under pressure?

If you can’t view the video here, please go here.

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The “American Owl” Restaurant in China

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As I read this Telegraph article on Hooters restaurants in China, I’m chuckling about the translation of the chain into “The American Owl.” The real question here is: does the Chinese language have a slang term similar to “hooters”? Either this wasn’t given thought, there wasn’t a fitting word, or it would have been too risky to chose any other option. This website notes a mythological view of owls in China, which says they harness occult powers. I wonder what other connotations this bird carries. The fact that Hooters did pay attention to giving their restaurants an apt name is progressive.

The story reminds me of how names lose a lot of their meaning in translation.

Kentucky Fried Chicken’s slogan “Finger Lickin’ Good” was translated into “Lick Your Fingers Off” in China. There’s also the famous story of a car made by Chevy: the Nova. It became a laughable topic of conversation in Spanish speaking countries, where “no va” literally means “no go” in English.

As Hooters, and other businesses, move into new countries, they face the challenge of adapting themselves to capture the local and national audiences they seek. Having the appropriate cultural resources are as priceless as having the opportunity to venture into an emerging market.

We’d love to hear any stories you’d have to share.

Mike

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Change Intolerance

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Countries like Saudi Arabia, Vietnam and Cuba have a low tolerance for change and believe control to be an external function, not highly influenced by human action.

* Cultures in this dimension are risk averse and strive to maintain the status quo.
* They look at new opportunities as creating problems, as leaders are expected to be champions of tradition who promise the remembrance of history.
* Change tolerance comes in varying levels, depending on what is to change. If you’re from Japan and traveling to Argentina, for instance, it is wise to learn Argentinian values to know what they are willing and not willing to change in order to better accomplish your mission.
* A high degree of risk aversion usually signifies restraint on individual freedoms, e.g. freedom of expression.
* When amongst people of a change intolerant culture, expect to witness a fatalistic approach to life and work.
* Your staff, whether it is in your household or office, will respond best to explicit rules and instructions, as they will expect a lot of direction.

- taken from RW3′s CultureWizard™

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Shoes in Arab Culture

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For those literate in general Arab culture, the specific throwing of one’s shoes at another person is a clear sign of abhorrence for that individual, which transcends an even more violent act, e.g. serious physical assault (throwing shoes is also known to be a deep offense in Thai culture). One could equate this to spitting on someone in a number of other cultures. The shoe is considered dirty because it touches the ground and foot. Striking a person with it denotes that person’s even dirtier level. It is even improper to show the sole of one’s shoe when seated and crossing legs. In mosques, shoes are removed before entry. Thus, a pattern arises and the concept of the shoe is embedded into a set of cultural values with historical anecdotes that serve as powerful references to meaning. The recent incident in Iraq, where a journalist threw his two shoes at President Bush, is one example. More of these examples can be accessed here, an article published in the Telegraph.

Without this understanding and knowledge, it would be impossible to understand the true meaning of such culturally-based behavior. This is perhaps an extreme example but it is representative of how misunderstandings can so easily occur without cultural competence.

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Indonesia Culture Tips

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When traveling to the worlds largest Muslim country, in terms of population, the following tips will come in handy:

* The national motto, “Unity in Diversity,” speaks to the 300 ethnic groups that live there. Approximately 90% of the population is Muslim, but religious freedom is guaranteed by the constitution.
* The Indonesian concept of “face” means keeping someone from feeling shame (called “malu”). It is an integral part of the way people interact.
* Bahasa Indonesian, the national language, has 12 ways of saying “No” and several other ways of saying “Yes” when the actual meaning is “No.” Thus, the culture is considered very indirect.
* Decisions are made through discussion and consensus, with a great deal of emphasis placed on maintaining group harmony.
* The Indonesian nation thinks of itself as one family, with the president referred to as bapak (father). Indonesians see themselves as members of a group first and as individuals second.
* Many Muslims do not have surnames. Instead, men add the father’s name to their own name with the connector “bin”. So Noor bin Isa, would be Noor, the son of Isa. Women use the connector “binti”, so Zarina binti Isa would be Zarina the daughter of Isa.
* As a hierarchical society, managers may take a somewhat paternalistic attitude to their employees.

- taken from RW3′s CultureWizard™

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Going to School Abroad

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This recent article in the New York Times brings to light an interesting occurrence that is on the rise: American students obtaining their full higher education degrees at schools abroad. Studying abroad for a semester up to a full academic year has been an option for years, but being fully enrolled in a foreign university has not been a common endeavor for American students.

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Connecting with Islam

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President-elect Obama is considering making a speech in an Islamic country within the first 100 days of his presidency. I think this is an excellent way to build solidarity between two communities that have lost touch, euphemistically. The top contenders seem to be Jakarta, Indonesia, where Obama spent much of his childhood, and Cairo, Egypt, a not too safe, but solid option. What kind of message would this send to the world? In terms of opening a cross cultural dialogue, Obama would grant recognition to the greater Muslim world, which for many is overdue, while meeting with leaders and other figures in an area of the world that presents an excellent opportunity to utilize a new, culturally apt approach to international relations.

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Decision-Making on Global Teams

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Today, RW3′s CEO Michael Schell and VP Charlene Solomon conducted an informative, half-hour “mini-webinar” that highlighted the obstacles to and solutions for decision-making by multicultural teams. It was great to build consensus on issues that affect how diverse teams make decisions, specifically trust and hierarchy. Since interacting with people of various cultural backgrounds requires cultural skills in addition to patience and increased sensitivity, we think you’ll find the insights provided during this webinar particularly valuable. See the full presentation here. We look forward to your insights on this important topic.

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Multicultural America

NPR launched a month-long series on multiculturalism last week. “Living In A Multicultural America” is the name of the first show. The participants attempt to define multiculturalism and ask whether a true melting pot exists in the US. If so, is this a uniquely American feature, or is this effect reproduced in other countries?

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No More Tourists at Tokyo’s Fish Market

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A ban on tourists at Tokyo’s famous Tsukiji fish market, also known as the city’s Tuna Markets, has been enacted for the next month, the busy end-of-year season, according to the Mainichi Daily News. This has been done to guard against mishaps that obstruct business, which involve inappropriate behavior. Auctioneers and other market employees have complained that tourists disrupt the auctioning process by taking flash photography and by actually touching fish and other produce sold at Tsukiji. The proverbial “underinformed tourist” comes to mind. A country guide usually has the information to educate visitors to foreign lands, but when rules aren’t as apparent, language is a strong barrier preventing the exchange of information. The fish market expressed its troubles to the Tokyo Metropolitan Government regarding barriers to communication with non-Japanese speaking visitors, which is what has led to the closing of the market.

In this very hierarchical culture, the market has opted to turn to a government body to remedy their issues, rather than to adapt on their own. The market has also clearly negated the option to place signage in multiple languages, which could inform visitors of rules and regulations. This is a perfect snapshot of Japanese culture, as the authorities of the market have solicited a complete prohibition on tourists, who want to observe a unique business ritual, rather then facilitate continued visitation. Even though Japan has adapted to the global economy, the vestiges of its historically closed economy emerge, where foreign trade was kept to a bare minimum to maintain a sort of internal cultural harmony.

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Offshoring to Increase

A recent study by Watson Wyatt has found that 42% of multinationals are likely to take aspects of their business offshore, as the depressed economy signals a forced cut in expenses. The study also found that multinationals will probably restructure their global HR branches by either dispersing it across multiple regions or centralizing it under a single global HQ. The issue to be raised here is the readiness and ability of offshore teams to effectively collaborate within a culturally heterogeneous corporate body. Are multinational organizations heading into offshore activity prepared for this new dynamic, or are they addressing issues as they arise? For example, how will an offshore team of Indians react to a complaint of their German executive that they missed a deadline by too much? How will the German executive understand how this could have happened? Fleshing out these misunderstandings can be largely tied to culture, which is what our Culture Tips category is all about.

See this release for a detailed summary of their findings.

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Protecting Cultural Resources

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Earlier this autumn, the US Senate voted to become party to the 1954 Hague Convention on the Protection of Cultural Property in the Event of Armed Conflict. This is a crucial step in maintaining the integrity of material culture, which makes one wonder why it took so long for this to take place. See the post here.

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The Competitive Advantage of E-learning

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Around one-third of all learning activities for corporate employees are now conducted electronically, according to the State of the Industry report by the American Society for Training & Development (ASTD). They claim that organizations have increasingly adopted e-learning methods. Interestingly, e-learning has been found to reduce learning times by a striking average of 40-60%, according to Brandon Hall, author of Web-based Training Cookbook. Since live events are limited in terms of time and scope, there is an incentive to implement e-learning due to its on-demand accessibility. Those that participated in the ASTD study claimed that technology-based learning activities helped simplify delivery, reduce costs and extend the content to a wider group. Despite recent downturn in organizational spending, the allocation of funds for learning, especially electronic learning, continues to increase, as employers value the strengthening of human capital (the average expenditure per employee rose 6% to $1103 in 2007, according to ASTD). It seems these incentives to implement e-learning, which provide an incredible return on organizational investment, are winning users over.

A few more of the benefits are:
* Individualized instruction, which targets specific needs.
* Learning style tests can identify individual learning preferences.
* E-learning users control the pace at which they learn, thus enabling users to bypass instruction that is irrelevant or slow down in areas that take more time, thus reducing frustration.
* Reduced overall cost, e.g. those associated with trainer’s, venues, travel, lodging, meals and time spent away from the job.
* On-demand availability allows users to complete training conveniently (off-hours or from home).
* Confidence that quick reference materials are available, which can reduce the responsibility of mastery.

A full survey of e-learning can be seen here.

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