Building High Performance Team in Top Management
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The document discusses the importance of building high-performance teams in top management for international joint ventures (IJVs), particularly focusing on collaboration between Chinese and German organizations. It highlights critical success factors, cultural challenges, and suggested actions to enhance performance through effective communication, cross-cultural understanding, and clear business objectives. The text emphasizes the necessity of a shared corporate culture and the role of management in fostering teamwork to navigate the complexities inherent in cross-cultural partnerships.
Building High Performance Team in Top Management
- 1. International Joint-Venture: Building High Performance Team in the Top Management by Prof. Dr. Hora Tjitra & Daisy Zheng Keynote Speech Cologne, Oct 14 2010
- 2. Excellence through Culture, Talent and Change IJV: Building High Performance Team in the Top Management_v1.0 / 2010-08 2 14 years in Germany 7 years in China Born and grew up in Indonesia Prof. Dr. Hora Tjitra – Cross-cultural and Business Psychology Dipl.-Psych.,Technical University of Braunschweig Organizational Psychology and Human Resource Management Dr.Phil.,University of Regensburg Intercultural Psychology and Strategic Management Executive Education,INSEAD HR Management in Asia
- 3. Excellence through Culture, Talent and Change IJV: Building High Performance Team in the Top Management_v1.0 / 2010-08 Index 3 1 Top Management Team in International Joint-Venture 3 2 Success factors for High Performance Team 7 3 Suggested actions 16 4 International Joint-Venture with Chinese Corporation 23
- 4. IJV: Building High Performance Team in the Top Management_v1.0 / 2010-08 Top Management Team in International Joint-Venture 4
- 5. Excellence through Culture, Talent and Change IJV: Building High Performance Team in the Top Management_v1.0 / 2010-08 IJV as Strategic Option for International Expansion 5 International Joint-Venture Government Regulation Managing Risk & Economy of Scale Creating Synergy Strategic Alliance ...
- 6. Excellence through Culture, Talent and Change IJV: Building High Performance Team in the Top Management_v1.0 / 2010-08 Top Management Team in IJV 6 Parents Company Performance Management Culture & Selection System Cultural Background Host - Guest Temporary Career Station
- 7. Excellence through Culture, Talent and Change IJV: Building High Performance Team in the Top Management_v1.0 / 2010-08 The Success of IJV depends very much on: How Successful the Top Management could ... 7 Communicate Interact Collaborate as a High Performance Team
- 8. IJV: Building High Performance Team in the Top Management_v1.0 / 2010-08 Success Factors for High Performance Top Management Team in IJV 8 The content presented below is based on literature review and recent studies of an Asian-European JV.
- 9. Excellence through Culture, Talent and Change IJV: Building High Performance Team in the Top Management_v1.0 / 2010-08 Case: Chinese – German IJV 9 The discussion on the problem of the Chinese-German collaboration and communication are often done in rigid dichotomy and lead to frustration: • Chinese (culture) and German (culture) are both strong cultures with long tradition so they can not be changed and we can not do anything. • Shareholder CN (Chinese) and Shareholder DE (German) are our shareholders, they are our bosses and their strategic goals seems to be different and make our collaboration difficult. Between the Chinese management and German assignees, there are a number of possible different perception on: • the understanding of management and business objectives (Chinese or/and international market) • the problem awareness • the needs of change (urgency and speed)
- 10. Excellence through Culture, Talent and Change IJV: Building High Performance Team in the Top Management_v1.0 / 2010-08 Critical Challenges for Top Management Team in IJV 10 Shareholders Influences & IJV Structure Organizational Identification Business Focus Efficient Communication Cross-Cultural Understanding
- 11. Excellence through Culture, Talent and Change IJV: Building High Performance Team in the Top Management_v1.0 / 2010-08 How to Keep the Balance? 11 The rapid growth and change of China’s economic and social situations as well as the changing strategy of the parents company may change the balance of the win-win situation from the IJV. Objectives & Strategies Organizational Structure Historical Background International Assignment • Profit • Expansion • Technology development • Cost control • Market acquisition • etc. • Counter part system • Decision making power • Relationship with parent company • HR relevant issue, e.g. C&B, promotion, career development • etc. • History of mother country • Cultural background • Success factor in parent company • Market position of parent company • etc. • Management selection • Pre-assignment training • Performance assessment • Promotion system • Assignment term • etc.
- 12. Excellence through Culture, Talent and Change IJV: Building High Performance Team in the Top Management_v1.0 / 2010-08 Organizational Identification of IJV Top Management Team 12 Meaning of “WE” Perception of Chinese to German colleagues Perception of Germans to Chinese colleagues • The members of Top Management Team (TMT) of IJV face the simultaneous demands of different policy makers in each parent company. • It is important for TMT how they perceive their roles in the IJV. • Organizational identiCication referred to how individuals perceiving themselves and their work organizations as intertwined, sharing common characteristics and destiny
- 13. Excellence through Culture, Talent and Change IJV: Building High Performance Team in the Top Management_v1.0 / 2010-08 Corporate Identification & Role Understanding 13 Organizational identification with the parent company or with the IJV? Guest-Host role perception caused by short-term assignment How well the IJV’s mission, vision and value is communicated and established? Meaning of “WE” • Parent company comes first • No sacrifice for the IJV • No obvious contribution to the IJV Perception of Chinese to German colleagues Perception of Germans to Chinese colleagues • Parent company comes first • No independency • Take risk for the IJV to achieve parent company’s objective
- 14. Excellence through Culture, Talent and Change IJV: Building High Performance Team in the Top Management_v1.0 / 2010-08 When Culture Collides 14 Different cultural backgrounds and orientations Inappropriate cultural expectation to the counter part Inefficient intercultural collaboration • Differences in cultural values, social norm and traditions • Different working styles and decision making processes • Cultural differences have big impact on communication and cooperation • Difficulties in local adaptation, incl. politics, business practices, social influences, personal relationship, etc. • Different understanding of “being professional” • Diverge in management concept and practice • May not know that the others do not know • May not know how much the other can understand • May not know what you can do to help the other understand you
- 15. Excellence through Culture, Talent and Change IJV: Building High Performance Team in the Top Management_v1.0 / 2010-08 Efficient Communication 15 “original message” “received message” Communication platform Language barriers Communication nourishment Information intransparency Teams, through interaction and historical responses to shared experiences, create context-‐speciCic working cultures. Communication plays an important role in coping with diversity on various levels. Communication has positive inCluence on management interaction effectiveness, strong relationships, and Cirm performance
- 16. Excellence through Culture, Talent and Change IJV: Building High Performance Team in the Top Management_v1.0 / 2010-08 Business Focus 16 Market focus Align with strategy Leading position in industry Management efficiency Business focus includes IJV’s service strategy, market strategy and itself core competence. Market strategy referred to the focus on international market, or domestic market. And the competence of the IJV, including human capital and technological advancement will facilitate the business performance • Involvement, understanding and support from both counter parts • Identify key account • International expansion • Customer distribution • Short-term and long-term profitability • Follow / Lead industrial trends • Contribution / Input from both counter parts • Keep cost and productivity balance • Updated leadership and management skills
- 17. IJV: Building High Performance Team in the Top Management_v1.0 / 2010-08 Suggested Actions to Enhance Performance in TMT in an IJV 17
- 18. Excellence through Culture, Talent and Change IJV: Building High Performance Team in the Top Management_v1.0 / 2010-08 18 Chance and Challenge: Higher Potential Needs a Better Competence in Team Work Adler, 1997 Current Productivity Potential Productivity Process Loss An important element here is how the Top Management Team identify themselves as well as their competence and sensitivity in dealing with cross-cultural differences.
- 19. Excellence through Culture, Talent and Change IJV: Building High Performance Team in the Top Management_v1.0 / 2010-08 Intercultural Team Performance Curve 19 Above averageBelow average Performance average Monocultural teams Intercultural teams Intercultural teams • Normally intercultural teams show either a below or above average performance. • This results amongst other things from the handling of different cultures.
- 20. Is Cross-Culture Adaptation a Universal Value? Andere Länder, andere Sitten. Allá donde fueres, haz lo que vieres. À Rome, fais comme les Romains. 郷に入っては郷に従う. Lain ladang lain belalang, lain lubuk lain ikannya. 入乡随俗 20 Tolerance? Differences Harmonization? Heightened Sensitivity?
- 21. Excellence through Culture, Talent and Change IJV: Building High Performance Team in the Top Management_v1.0 / 2010-08 Critical Challenges for Top Management Team in IJV 21 Shareholders Influences & IJV Structure Organizational Identification Business Focus Efficient Communication Cross-Cultural Understanding
- 22. Excellence through Culture, Talent and Change IJV: Building High Performance Team in the Top Management_v1.0 / 2010-08 Proposed Top Management Team’s Development Objectives 22 1. Team Norm. Top Management Team should agreed to speak with one voice to the outside world, incl. their direct report and employees. Differences and conflict of interest should be whenever possible only discussed internally. 2.Understanding each other. Development of a better cross-cultural understanding for both sides (training, coaching, cultural events), also due to the increasing international businesses. 3.Efficient communication. Better utilization of different communication channels and tools, e.g. English proficiency, change of the traditional meeting form, encouraging across “boundaries” informal event. 4.Corporate culture fit. Consistency in the implementation of the corporate culture (vision, mission, value) where the TMT should play the “role model” and use this tools whenever possible in the decision making and performance assessment process. 5.Clear business focus. In agreement with the shareholders, agreed on a clear business focus. 6.Team Spirit. After some sign of improvement, team building activities can be considered.
- 23. Excellence through Culture, Talent and Change IJV: Building High Performance Team in the Top Management_v1.0 / 2010-08 Sample of Possible Process to Solution 23 1. Objective Business Perspective How to deal with key account customer, who contributes to xxx revenue, yyy profit & zzz strategy? 2. Culture Practices Perspective What could be the cultural differences in “treating” VIP customer in China and Germany? 3. Company Perspective Relate them to the Company mission statement on customer satisfaction and supreme reputation ! 4. Real Customer Case Use the agreed guideline which is based on the three perspectives above to discuss on the real case.
- 24. Excellence through Culture, Talent and Change IJV: Building High Performance Team in the Top Management_v1.0 / 2010-08 24 The People of Republic China – 中华人民共和国
- 25. Excellence through Culture, Talent and Change IJV: Building High Performance Team in the Top Management_v1.0 / 2010-08 Characteristics of Chinese Counter Part 25 Personal relationship and trust Pragmatic result driven Hierarchy power relationship Select & Assign someone who has: • professional strong competence (e.g. with a good track record) • affinity of Chinese culture Suggestion for Top One from two counter parts (e.g. GM): • Come with clear objective • The identity should belong to the IJV but not their mother companies
- 26. Excellence through Culture, Talent and Change IJV: Building High Performance Team in the Top Management_v1.0 / 2010-08 Collaboration with Chinese: Differences between Nowadays and 10 Years Ago 26 Limitation of • Language • Knowledge • Physical Chinese: adapt to the other counter part more Development of • Economy • Knowledge • Language Chinese: start to take the leading role more 10 years in China · 10 years in China · 10 years in China · 10 years in China · 10 years in China
- 27. Thank You Keynote Speech Cologne, Oct 14 2010 contact us at hora_t@mac.com visit us at http://sinau.me follow us at twitter@htjitra