international and national methodes

[James]

Hi Everyone,

I am currently working in Toulouse, France.. here many many companies search for international well experienced people...
But.. Those same firms do not want to function international nor think (business methodes) international..

Does anyone else have these or those experiences??

[Philip Weiss]

Can you give more background on the companies you are refering to? We work with international companies, mostly based in Brussels. The HQ culture is influenced by where the company is from (Japan, US, or European countries). Are the companies you have contact with french? Or are they from a European or other origin?

In my experience the culture is strongly shaped by the origin and way of approaching global business changes considerably. The US tends to run a centralised model, trying to treat Europe as a unifyied market, whilst the japanese tend to delegate and try to build conscensus (which means a great deal of negotiation with the markets).

[Mira Bangel]

Hi James,

I recognize this and I do believe this is quite a common practise.

Many enterprizes aim for international revenue and the multinational image that comes with it.
However they often do not realize that a change in the target market also inherits a need for change of the company's business culture & practises.

I've heard from many international employees that had to struggle with local practises, regulations and even with bullying by national colleagues because this step was not taken at the right pace and a company started hiring before analysing possible implications and talking to their staff.
I'm sure you've experienced that (whether you are an investor or a potential employee) willingness for change is a key asset for a national company with international ambitions.

It looks like you've got quite some experiences with this.

What have you found works well for such companies?
Is there a recipe that works?

Best wishes,

Mira

[Tsc Tempest]

What you describe is not isolated to medium or large enterprises, or European companies only, it is also very evident in small firms that engage in trade particularly facilitating offshore manufacture as producers, procurers or intermediary agents.

In the past eight years in China, I've noticed that whilst there are ongoing changes in work practices and interaction between Chinese and Western- oriented companies, the difference in business models, methods and working culture and ethics are still a major source of friction at all nodes up and down a global the supply chain.

Whilst small, mediium or large organisations need to evaluate their business methods especially n light of global operations, what might work for one organisation may not neccessarily work for arger, smaller, mobile or diversified organisations. Regardles of the global management and strategic methods guiding the organisation, if localised management practices, working ethic and business cultures are not fully taken into account, or if organisations try to transpose by imposition, their own localised practices, then problems must, and do, arise.

Whilst Mira says, "a willingness to change is a key asset," I feel it is not so much a willingness to change but an honest willingness to accomodate changes which may better facilitate the acievement of organisational goals and mutual benefit in multi-party, multi-cultural, global business activities.

[Mira Bangel]

Interesting comment, Tsc Tempest.

Especially this sentence:
... if localised management practices, working ethic and business cultures are not fully taken into account, or if organisations try to transpose by imposition, their own localised practices, then problems must, and do, arise.

Obviously these obstacles are part of every organization that is expanding into an international market.

But what are the processes we need in place in order to overcome these obstacles and prevent a possible crisis?

Isn't one of the biggest missperceptions that you cannot 'upgrade' to an international organization but that this is something that needs to grow step by step in order to maintain a healthy balance between people & infrastructure, financial health and a feasible GotoMarketPlan?

Best wishes,

Mira

[Tsc Tempest]

Mira Bangel wrote:
>But what are the processes we need in place in order to overcome these obstacles and prevent a possible crisis?

Hello Mira, It is possible to "upgrade," as you mention later, if you:
a) maintain your existing supply chain; or
b) outsource parts of your supply chain to culturally similar providers;

as this would then provide the least stress due to conflicts in expectation, work ethic and practice.

It is not impossible to do this using non-culturally similar suppliers but there is some extensive consideration, and contingency planning, that needs to be factored in when doing so. My previous experience in China taught me that my expectations about standard working practices, behaviours and obligations are not those of many Chinese people. I’m not saying I was right and they were wrong, it was just vastly different. Now, in Vietnam, I find the situation even more extreme.

It is possible to be willing as an operator, or organisation to take into account the cultural differences that are inherent in going offshore, however, even the expectation to be “met halfway” does not apply. For example:

Many Chinese manufactures thought it would be cheaper to shift operations to VN, but found the savings in setup and labour costs, while substantial, were being lost in sourcing and importing raw materials for manufacture; and, the need to provide trained middle level management and supervisory staff. Similarly, expectations of “standard” motivators to encourage overtime, work accuracy, and quality were just not the same. As a result inconsistent production quality, extended manufacturing deadlines, extensive need to train staff, leaching of trained staff to other organisations, and the requirement to pay, regardless of what has been produced is costing many organisations, the margins they hoped to gain.

The point here is that “Going Global” can be an upgrade, but it can also be something that has to be grown into. It’s not a misperception but rather, an often overlooked strategic issue that requires solutions to be sought at both ends and frequently, vastly different and culturally specific solutions at that.