2. “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

3. 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.

4. 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 Liz Cherry, MBA and Dr. Lisa Skipton Cross Cultural Analysis Consultants – Anna Gorak Psy.D and Helen Kellaway Ph.D Cross-Cultural Training Programme Managers - George Ritchie MSc and Chris Davis PhD

5. 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

6. 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 & values – key to the success of our new operations in Japan” We loved the fact that all courses follow careful discussion with each individual about their level of language ability and experience of a country & are perfectly tailored to ensure each trainee really does get the most from the training offered. “ De Beers: Working successfully with the Japanese

7. 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. Conclusion - the benefits of our cross-cultural training to be gained by Sophia.

9. 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

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

11. 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, 2009. Low Uncertainty Avoidance

12. 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

14. Business Practice Differences GERMANYCHINA Efficiency, rules & proceduresRelationships: guan xi ContractTrust Punctuality expectedValued by modern China, not old 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

15. 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

16. 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

17. “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

18. TIME-LINE OF PREVIOUS SUCCESSFUL EXPATRIATE

19. Training Programme Source: Harzing & Ruysseveldt, 2004: 286; Caligiuri and Tarique, 2005; Caligiuri et al, 2009

20. OVERVIEW OF THE ASSIGNMENT FREDERICKS Ltd along with its subsidiaries, is engaged in providing the design, production and supply of high-tech electronic equipment for the computer technology industry. Fredericks are currently looking to send a female manager, Sophia Schmidt, to its subsidiary in China, in order to train a team of ten employees as part of a strategic development plan. The training is designed to prepare the strategic development team for developments due to take place within Fredericks. It is also going to give the team a full and deep understanding of the business model, strategies, values and beliefs, customs and cultures. One manager has been selected, due to the particular skills-set, commitment and dedication to the company. The two year secondment will allow the chosen manager to develop further in cross-cultural negotiations. SOPHIA SCHMIDT STRATEGIC BUSINESS DEVELOPMENT MANAGER Sophia joined Fredericks Ltd four years ago as an Operations Manager but rapidly made her way up to the position she now holds, Strategic Business Development Manager. Sophia has demonstrated her ability to lead diverse teams of professionals in a variety of highly competitive, cutting edge and fast paced markets and environments. The following qualities will assist her success in this two year placement: Strong Technical and Business Qualifications Hands on experience in strategic planning Ability to develop, enhance, increase revenues and improve customer service

21. 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 Caligiuri, and Tarique, 2005

22. 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. Source: Johnson 1992 as cited by Seel, 2000; Johnson, 2000, p. ; Harzing & Ruysseveldt, 2004 Gerry Johnson 1992

23. 3. The expatriate’s Level We will check Sophia’s personality suitability for expatriation by testing her: Flexibility and Open-mindedness Positive self-image Empathy and respect 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. Source: Caligiuri, and Tarique, 2005; Holopainen and Bjorkman, 2005; Waxin and Panaccio, 2005.

24. 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. Source: Harzing & Ruysseveldt, 2004: 286; Caligiuri and Tarique, 2005; Caligiuri et al, 2009

25. 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

26. Training Programme – Phase 3 (Goals and measures) Training Programme – Phase 3 (Goals and measures) Adapted from: Caligiuri, and Tarique, 2005

27. 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

28. 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

29. Training Programme – Phase 4 (Developing and delivering the training programme ) Training Programme – Phase 4 (Developing and delivering the training programme ) Pre-Departure CCT and In-country CCT In-country CCT and Sequential CCT Source: Harzing & Ruysseveldt, 2004: 286; Caligiuri and Tarique, 2005; Caligiuri et al, 2009

30. Didactic culture- specific training Area orientation briefing Language trainingCulture-specific assimilator Culture-specific Reading Lectures about: Women Expats in China factual information about China, its geography, climate, law and customs Group Behaviour in China Understanding Chinese Culture & Confucianism Delivered through: workbooks online tutorials sessions with the teachers role playing sessions as a part of experiential type of language training. Delivered through Series of episodes of Chinese culture behaviours identifying and discussing the correct interpretation of interactions in episodes. also available in form of CDs and workbooks for self study. Delivered through provided by IBCT Chinese-specific books. Source: Stahl and Bjorkman, 2006

31. Experiential culture-specific training Bicultural communication workshops Culture- specific simulation games Case studiesCritical incidents exercises Culture- specific role play Delivered through: series of tasks that involve interacting with members of Chinese culture working in small groups and completing tasks together Delivered through: Concrete, intense and social activities designed to make emotions play a role in the development. No interactions with Chinese involved. Also as a part of our pre- departure training Delivered through: Series of case studies where expatriate analyse the problems and determine possible solutions. Also as a part of our pre- departure training Delivered through: tasks where participants make decisions based on provided descriptions of incidents Also as a part of our pre- departure training Delivered through: series of scenarios where participants from both cultures have particular roles to play. Source: Stahl and Bjorkman, 2006

32. Recommended IBCT’s cultural specific workshops : Preparing For Expatriation Avoid the culture shock 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 Cantonese Language Skills Preparing For Returning Home Our “Women Expats in China” workshop Adapted from: Vance and Yongsun., 2006

33. 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? Source: Caligiuri and Tarique, 2005; Caligiuri et al, 2009

34. 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. 10. Our CCT will increase Sophia’s chances to succeed in her first international assignment.