Knowledge Management Consultancy in China
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The document discusses a business proposal for implementing knowledge management systems in China. It begins with introductions of the multicultural team members and an analysis of their different cultures. It then provides an overview of knowledge management and proposes developing a knowledge management system for a Chinese corporation. The proposal emphasizes capturing both explicit and tacit knowledge and disseminating it within the organization. It also discusses how Chinese business and cultural characteristics, like collectivism and loyalty, create an environment well-suited for knowledge management systems. The proposal concludes by noting the importance of measurement to evaluate performance over time.
Knowledge Management Consultancy in China
- 1. Knowledge Management Consultancy in China Derek Mitchell International Business Technion Multi-Cultural Team Project Atlanta Module-Fall Semester 2011
- 2. Team Introduction & Cultural Analysis • Team Introduction • Team Process • Cultural Comparisons • Chinese Culture • Chinese Business Culture
- 3. Derek Mitchell From USA, 30 years old Single and full-time student in Management program Lives in Atlanta, Georgia Likes traveling and music Team Introduction Faisal Nasir From Pakistan, 33 years old Married with 2 children and lives in Seattle, WA Works full-time at Microsoft and Enrolled in part-time MBA at University of Washington, Seattle. Likes reading, playing cricket, volleyball and chess
- 4. 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
- 5. 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
- 6. 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 Soccer Hockey is the national sport Sports: football is most popular Sports enthusiasts Dedicated to traditional sports and competitions
- 7. 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
- 8. 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
- 9. 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
- 10. 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
- 11. Knowledge Management Systems • Knowledge Management • The Business Proposal-Knowledge Management Systems • Human Resources in China
- 12. 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
- 13. 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
- 14. Business Proposal Human 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.
- 16. Business Fit Analysis Not a unique idea in USA USA 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.
- 17. 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.
- 18. Cultural Advantages and Best Practices Advantages Best Practices Invest 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
- 19. Validating the Information Jos van der Woert - Businessman in China and Asia jos.vanderwoert@gmail.com “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 thio277@yahoo.com “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”.
- 20. Knowledge Management Systems Contact Info. Derek Mitchell dlmitchell3001@gmail.com www.linkedin.com/in/dereklmitchell