Implementing PRO Systems Across the Globe: Overcoming Cross Cultural Barriers Mehran Farahmand May 10, 2001

Agenda  What is culture?  How do people from different cultures behave?  Why do we (should we) care?  Q & A

3 What is Pricing and Revenue Optimization (PRO)? It is a disciplined process of determining: what products and services should be offered to which customers, at what prices, through which channels in order to maximize profits and win the business. It is a disciplined process of determining: what products and services should be offered to which customers, at what prices, through which channels in order to maximize profits and win the business.

4 World According to AGIFORS Singapore UK Japan USA New Zealand Canada Thailand France Iran Brazil Mexico Chile Israel Finland Ireland Switzerland Spain Germany Netherlands Italy Denmark Hong Kong

5 Cultural Influences Business Processes People Information Systems PRO Themes

6 Question Define Culture

7 “Culture is Communication & Communication is Culture ” Edward T. Hall “The Silent Language” What is Culture?

8 Country Culture Impacts Organizations Think of it as the soul of the organization –Identify the symbols –Determine what people value most –Listen to the “stories” –Recognize the unwritten rules

9 Your “Position” in the Society How you are addressed How you address others Where you are invited to sit Where you sit Walking in front of others Greetings and show of affection

10 Communication/Gestures “Aizushi” Paying attention in a meeting Looking in the eye Other gestures

11 Eating/Drinking Honto Drinking sake in Japan Passing the sake cup in Korea Not drinking and driving in America Sharing food Hygienic Sushi

12 Time Patience as a virtue Impatience as a virtue Ensha-allah

13 Space Your office Showing home to the guest Saving the best room for the guest The comfort zone

14 Questions What is the biggest misconception of your country (culture)? Pick any other country and write it down. Mention the first image or thought that comes to your mind you think of the culture or people of this country.

15 Any Thoughts? Who picked India as his/her country? Who picked Mexico as his/her country? Who picked New Zealand as his/her country? Who picked Denmark as his/her country?

16 Any Thoughts? Who picked America as the other country? Who picked Belgium as the other country? Who picked China as the other country? Who picked Iran as the other country?

17 Conceptions and Misconceptions Not without My Daughter Salaam Bombay Dallas Miami Vice

18 Hofstede’s Model Explanations of cultural differences bases on 4 criteria –Power distance (PDI) –Uncertainty avoidance (UAI) –Individualism vs. collectivism (IDV) –Masculinity vs. femininity (MAS)

19 Power Distance Distribution of power in the group and the tolerance / expectation of inequality

20 Uncertainty Avoidance Avoidance of unknown, embracing the familiar

21 Individualism vs. Collectivism: “I” versus “We”

22 Masculinity vs. Femininity Hard core success vs. soft-core caring

23 Example: Application of Management by Objectives UAI PDI 100 France U.S.

24 Example: Cultural Implication On How We Run a Project UAI PDI 100 Japan U.S.

25 Volunteer Needed One volunteer 15 seconds each

26 Culture Processes Organization Decision Making People Tools & Systems Leadership Jobs Perform Vision Strategy Plan Performance Measurement & Feedback System Cultures Impact All Aspects of the Organization

27 Money ….Yes….but…... Decrease cost Increase revenue Serve the nation Make employees happy Reduce workload

28 Revenue Management Processes Develop Product Promote Product Manage Supply Manage Demand Deliver Product Maintain Distribution Channel Sell Product Organization Structure Information Technology Cultures Impact our Work Processes

29 One More Volunteer Needed! One volunteer 15 seconds

30 Great Sources Used Here Greet Hofstede – “Culture’s Consequences:International – Differences in Work-related values” Edward T. Hall – “The Silent Language” Albert Camus –“L’etranger” Mehran Farahmand – “The Shadow: Running Circles Around the Past” 【 Work in progress 】

31 Q & A