“The manager who knows only his or her own country is doomed to become obsolete. Most organzations can no longer afford to employ culturally myopic managers” Philip R. Harris and Robert Moran, Managing Cultural Differences “The manager who knows only his or her own country is doomed to become obsolete. Most organzations can no longer afford to employ culturally myopic managers” Philip R. Harris and Robert Moran, Managing Cultural Differences

By the end of this presentation you will …. Have a deeper understanding of the cultural differences between China and Germany and the importance they play on business expansion for your company, Speedline. Become acquainted with IBCT’s bespoke training methods and why we are the most acclaimed cross- culture training team in our industry. Be informed to make the right decision to hire IBCT to ensure your candidate has the best possible advantage during her stay in China – benefitting her, Speedline, and your Chinese partners & customers.

Founded in 1990, with 160 employees We are the largest team in industry, specialising on managing multinational challenges We assist both the private and public sector and hold a large portfolio of MNCs We offer a wide scope of tailored packages to suit individual client needs. We are an integral part of learning and development for many global clients Meet The Team Business Strategy & Development Managers Dr. Lisa Skipton and Liz Cherry, MBA Cross Cultural Analysis Consultants – Helen Kellaway Ph.D, and Anna Gorak Psy.D Cross-Cultural Training Programme Managers - George Ritchie MSc and Chris Davis PhD

We will always: Gain an understanding of your key business drivers Grasp your strategic objectives and the challenges they bring Understand the current skills, knowledge and attitude of your organisation at all levels We will always: Gain an understanding of your key business drivers Grasp your strategic objectives and the challenges they bring Understand the current skills, knowledge and attitude of your organisation at all levels Philip R. Harris and Robert Moran, Managing Cultural Differences

Ashurst: Developing Employees for International Success “IBCT’s training was particularly interactive and provided our teams with an insight into cultural differences and how to maximise cross cultural relationships ” Shearman & Sterling: Working successfully across cultures “ The Japanese briefing delivered to De Beers personnel provided not only an invaluable insight into working effectively with our Japanese counterparts but also an understanding of Japanese society and values – key to the success of our new operations in Japan” “ The cultural awareness and language training offered by IBCT has given our trainees going on international secondments the key knowledge and skills that make their settling into a new country that little bit less daunting! All courses have always followed careful discussion with each individual about their level of language ability and experience of a country and are perfectly tailored to ensure each trainee really does get the most from the training offered. “ De Beers: Working successfully with the Japanese

A brief introduction to Guangzhou, China An explanation of what cross-culture studies are. Theoretical comparisons between Germany and China, focusing on Hofstede, Trompenaars, Edward Hall and the GLOBE Project. Business practice differences between Germany and China Female managers in Germany and China. Top 10 challenges your candidate may face. Our bespoke training plan. Our methods and training schedule. The benefits of our cross-cultural training to be gained by Sophia.

General information Guangzhou -CHINA General information Guangzhou -CHINA Official LanguageCantonese Population5,162,000 GovernmentCommunistic CurrencyYuan ReligionMulti-religious: Buddhism, Taoism, Islam, Catholicism, Protestantism, Confucianism Time zoneGMT/UTC + 08:00 hour ClimateSub- tropical Source: Former et al, 2010; Miller, 2010

Hofstede: culture is the “software of the mind ” Hofstede: culture is the “software of the mind ” Source: Hofstede, 2011

GermanyChina Hofstede Small Power Distance Large Power Distance Individualist Collectivist High Uncertainty Avoidance Medium-term Orientation Long-term Orientation Source: Eurochambres Academy, 2011; French, 2010; Hofstede, 2011; Kohun et al, 2007, Luthans and Doh, Low Uncertainty Avoidance

Trompenaars Edward Hall Source: Broda, 2011: Forbes, 2011; Geng, 2010; Hutchings, 2004; Gesteland, 2005.Hutchings et al, 2004; International Business Culture; 2011 Luthans, F., and Doh, J., 2009; Medlock Method, 2011

Business Practice Differences GERMANYCHINA Efficiency, rules & proceduresRelationships: guan xi ContractTrust Punctuality expectedRelaxed about time Gift giving not expectedGift giving can win contracts Hierarchy: respect for positionHierarchy: respect for elders Individuals working within teamTeamwork Low level corruptionStill high levels of corruption Few ritualsMany rituals, e.g. Business cards Problems: tackled directlyProblems: avoided, ”face saving” Source: Gibson, 2010; Kwintessential, 2011; Lau, 2007; Selmer, 2005; Wang, 2011

Glass ceiling: societal influence Glass ceiling: female modesty Wide pay gapNarrow pay gap Weak childcare supportStrong family childcare support Women behave like menWomen behave like women Constant need to prove herselfEasier once gains trust Source: Gunkel et al, 2007; Krieg, 2006

1.Things are done slowly. They may deliberately test your patience. 2. Relationships are more significant than contracts. 3.Saving face” is considered superior to truth. 4.Group harmony is valued more than individual progress. 5.Initiative is rarely shown by subordinates. 6.Communication is high context –“yes” often means “no.” 7.Chinese do not trust those outside of their “in-groups” 8. Guan xi often requires obligation and favours. 9.Respect to elders is given over younger, more senior mangers. 10.There is little distinction between work and social relationships.. Source: Bing 2010; Burke, ; Castle, 2008; Chen and Partington, 2003; Dereksy, 2011; Hodgetts et al, 2006; Kwintessential, 2011; Sartor, 2007; WorldBusinessCulture.com, 2011

“Estimated cost of a three year assignment = $ 1 MILLION” (Source: Brewster 2001) “Cross cultural training is vital if organisations are to avoid high levels of expatriate failure rates (premature returns)” (Source: Black and Medenhall 1990) “Done well, expats say cross cultural training makes their moves easier, especially when it focuses on practical information about their host country, Done poorly, they add, it is a waste of money and time.” (Source: New York Times) “Failure can cause – Damage to company and company's Global image”. (Source Evans 2002) “A little cultural knowledge goes a long way” IBTC, 1990

Training Programme PHASE 1 ASSESS TYPE OF GLOBAL ASSIGNMENT PHASE 2 DETERMINING TRAINING NEEDS PHASE 3 ESTABLISHING GOALS AND MEASURES PHASE 4 DEVELOPING AND DELIVERING THE TRAINING PROGRAMME PHASE 5 EVALUATING THE TRAINING PROGRAMME Source: Harzing & Ruysseveldt, 2004: 286 Technical Functional Developmental Strategic Short term Long term Organisational analysis Expatriate analysis Assignment analysis Instructional content Instructional methods Sequence of training sessions Short term goals Long term goals

Meet with senior management to discuss aims and objectives of assignment to confirm type Driving Speedline business into new Chinese territory. Ensuring local staff are aware of and have knowledge of Speedline’s corporate culture and “brand equity” Creating new strategic alliances with third party companies in China. Assignment type : STRATEGIC

1. Organisational Level: Full audit on culture, strategy and structure in UK HQ and Chinese subsidiary using the Jerry Johnson model (1992) to understand organisation culture, via questionnaires, observation and interviews. Evaluating UK & Chinese market positions, local staff requirements and skills match. Test staff brand awareness and knowledge of corporate strategy in both countries via questionnaires, interviews and focus groups. 2. Assignment level: Full job audit to establish duties, tasks and expected functions to understand the complexities of the assignment. Establish quality of output and levels of responsibility. Measure knowledge, experience, qualifications and the level of cross-cultural skills required to carry out the job effectively. Carried out through work measurement, job description comparisons, on-line skill assessments. Jerry Johnson 1992

3. The expatriate’s Level We will check Sophia’s personality suitability for expatriation by testing her: Flexibility and Openness Intercultural Abilities Communication Style Cross Cultural Awareness Acceptance of Cultural Differences Family considerations Our 3 step personality test: 1.A self-evaluation test undertaken by Sophia which comprises of a psychometric assessments and evaluation of her motives & willingness for the assignment. 2.A one to one “reality check”, private session with a trained counsellor to establish her goals, understanding of the assignment and general overview of Chinese norms and values. 3.A half-day workshop with approximately 8 people to exchange ideas, resolve HR issues and prepare for the next stage in expatriation. Our 3 step personality test: 1.A self-evaluation test undertaken by Sophia which comprises of a psychometric assessments and evaluation of her motives & willingness for the assignment. 2.A one to one “reality check”, private session with a trained counsellor to establish her goals, understanding of the assignment and general overview of Chinese norms and values. 3.A half-day workshop with approximately 8 people to exchange ideas, resolve HR issues and prepare for the next stage in expatriation.

4. The level of Sophia’s readiness for expatriation CCT We will check Sophia’s cultural readiness for expatriation by evaluating her: Prior experience of China- no matter how little Existing cross cultural knowledge Existing levels of cross cultural skill Her language skills – English and Chinese Her perception of CCT Our 3 step cultural readiness test: 1.On-line assessment of international previous exposure and knowledge 2.Completion of our specific “Chinese Culture Awareness Test” 3.Language tests in English and Chinese. Our 3 step cultural readiness test: 1.On-line assessment of international previous exposure and knowledge 2.Completion of our specific “Chinese Culture Awareness Test” 3.Language tests in English and Chinese.

COGNITIVE GOALS How quickly and easily Sophia absorbs the Chinese culture AFFECTIVE GOALS How the Chinese culture is affecting Sophia. How is she managing ‘culture shock?’ BEHAVIOUR GOALS How is Sophia adapting her behaviour /building relationships? Training Programme – Phase 3 (Goals and measures) Training Programme – Phase 3 (Goals and measures) SHORT-TERM GOALS

Training Programme – Phase 3 (Goals and measures) Training Programme – Phase 3 (Goals and measures) Longer- term Goals Continual improvement plan Repatriation planning Set the standard for future assignments Handling of reverse culture shock Assignment hand-over after 2 years

Training Programme – Phase 3 -Goals and measures Training Programme – Phase 3 -Goals and measures Short term Accomplishments at end of CCT programme Improved understanding of international assignments Improved understanding of Chinese culture Successful co-operation with Chinese colleagues Project targets met, e.g. sales targets, production targets Understanding of the need for anticipatory adjustment Longer term For Speedlink Completion of Speedline’s strategic implementation in China Acceptance and adoption by Chinese staff of Speedline’s global mindset Chinese staff performance increasing Chinese market share. Speedline’s confidence in future assignments. For Sophia Personal satisfaction Personal betterment Increased confidence Measurement Methods Personal Tutoring Online tests In person interviews/ Phone interviews Performance appraisal Company performance

Training Programme – Phase 4 (Developing and delivering the training programme ) Training Programme – Phase 4 (Developing and delivering the training programme ) General training on what it's like to work and live abroad - lectures, seminars, reading material, videos, on-line training, websites etc. Specific training about what it's like living and working in China - studies, lectures, orientation briefings, case studies etc. Didactic culture (cultural information for Sophia) General training on the impact of how cultural differences in general have an affect on individual's behaviour - workshops and immersion programs. Specific training on Chinese culture - through role-playing, Skype, Chinese cultural training and language training. Experiential culture (cultural impact on Sophia) Pre-Departure CCT and In-country CCT In-country CCT and Sequential CCT

Experiential cultural specific workshops : Preparing For Expatriation Women Expats in China How To Make Guan Xi Work For You Chinese Relationship Building Group Behaviour in China Understanding Chinese Culture & Confucianism Successful Communications in China How To Cope With Missing Home Language Skills Preparing For Returning Home “Women Expats in China”

Does anyone like this model? Or shall we stick to just the next slide?

Training Programme – Timescales Training Programme – Timescales Training Schedule and Timescales Assignment Type Phase 1 2 days Training needs analysis Phase 2 3 days Goals and Measures Phase 3 2 days Developing and delivering training Phase 4 Pre 2-3 days During 5-8 days Post 1-2 days Evaluation Phase 5 2 days

Training Programme – Phase 5 (Evaluating the training programme ) Training Programme – Phase 5 (Evaluating the training programme ) 1. Short term goals Developing outcome measures 2. Long term goals Cognitive outcomes Use on-line tests and written papers to check how Sophia has absorbed Chinese culture. Affective outcomes Face to face interview or focus group to see test how Chinese culture has affected Sophia’s emotions. Behavioural outcomes Test Sophia’s behaviour and communication skills within a role-play Test for longer-term effectiveness through questionnaires, interviews and on-line surveys: - Was the overall project successful for Sophia / Speedline / our Chinese colleagues? - How successful was Sophia’s repatriation? - What would we keep? What would we change?

Training Programme – Beneficial outcome Training Programme – Beneficial outcome 1.Increased motivation to develop and progress. 2.Learning about others will deepen the Sophia’s knowledge about herself as well. 3.Cross-cultural training will encourage her confidence. 4.It will break the barriers down and thus allow for more open relationships and dialogue. 5.Our training will help Sophia to achieve mutual understanding at new workplace and then build trust. 6.It will also encourage Sophia to adopt new creative strategies when approaching challenges at new workplace. 7.It will teach Sophia how to deal with people with a sensitivity and understanding and thus develop great "people skills”. 8.Will develop her listening and communicating skills. 9.Sophia will learn how to establish mutual understanding as a mean to overcome culturally challenging situations.