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
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Harnessing the Power of Diversity