ProgramAgenda

1 ... Cross-cultural Impacts of the New Globalism

2 Challenges & Potential for Asian Leaders

3 Developing the Global Competence of Asian Leader

4 About the Project and applied Research Method

http://sinau.me/hcli

Jakarta, Indonesia, July 20th 2011

by Prof. Dr. Hora Tjitra, Zhejiang University

Cross-­‐Cultural  Leadership  of  Asian  Leaders  

in  the  New  Globalism

Abstract

• Led by China, Asia attracts the highest foreign-direct Investment in the world. In addition, recent development shows an increasing international trade and cross-borders investment through the increase of bilateral and multilateral free-trade agreements among the Asian countries (e.g. CAFTA).

• Globalization and increasing cross-border engagements has resulted in organizations having to manage culturally diverse groups, both within the organizations (owners, employees, investors) and outside of them (suppliers, competitors, and customers).

• As pointed out by cross-cultural studies in organizations, cultural differences are not disappearing nor diminishing in global organization practices.

• On the contrary, they seem to be getting more complex, and are posing challenges for organizations to achieve their goals.

Agenda

1 ... Cross-Cultural Impacts of the New Globalism 4

2 Challenges and Potential of Doing Business in Asia for Asian Leaders 11

3Developing the Global Competence of Asian Leaderin Response to the New Globalism

15

...  Cross-­‐Cultural  Impacts  of  the  New  Globalism

The world is flat ...

Opportunities

Competition / Threats

Information & Technology

Innovation & Collaboration

Limitation of • Language• Knowledge• Physical

Chinese: adapt to the other counter part more

Development of

• Economy• Knowledge• Language

Chinese: start to take the leading role more

10 years in China · 10 years in

China · 10 years in China · 10 years in

China · 10 years in China

New  Way  of  East-­‐West  Collaboration

Not  Only  that  Intra-­‐Regional-­‐Trade  within  Asian  Countries  ...

106

REG

ION

AL C

OO

PER

ATION

AN

D IN

TEGR

ATION

14

Southeast Asia has grown rapidly in recent decades. Intricate regional production networks and supply chains have been established in industries such as electronics and cars. This process has resulted in fragmentation of production—the scattering of parts of the production process across different econo-mies—and led the process of regional and global inte-gration. This has stimulated foreign direct investment, deepened trade in intermediate goods, and boosted growth in the region.

Intra-regional trade in parts and components has increased as the pattern of regjional production has become more specialized. FDI flows have gravitated to PRC, especially after the 1997-8 Asian crisis. PRC has become the main assemblly plant for “Factory Asia” and emerged as a significant export for other East and Southeast Asian economies, as well as a base for final goods to the rest of the world.

This level of trade integration exceeds that of North America (about 40 percent), but falls short of

that of the EU (about 75 percent). Across different subregions within Asia, East Asia is the most inte-grated subregion, although labor and monetary/finan-cial integration remain low. For all other subregions, the degree of integration remains low in terms of labor and financial integration.1

Drivers of economic integration

The key drivers of regional economic integration relate to the costs of trading, infrastructure, the com-petitiveness and quality of institutions, and conflict. An analysis of these determinants leads to the following conclusions:

There have been many improvements in the Asian drivers of integration and economic growth in recent years, especially in East Asia. These have contributed substantially to the region’s superior growth performance.

1 Central Asia’s labor markets are a notable exception. They are moderately integrated due to intra-regional migration, especially migration from Central Asia to The Russian Federation.

Asia has experienced an increase in share of intra-regional tradeFigure 2

Source: World Bank World Development Indicators, 2011.Note: Figures refer to total trade (exports plus imports). The intra-regional trade share of region i is defined as IT sharei = (Xii+Mii)/(Xi+Mi), where Xii = exports of region i to region i; Mii = imports of region i from region i; Xi=total exports of region i; and Mi = total imports of region i

“The key drivers of regional economic

integration relate to the costs of trading,

infrastructure, the competitiveness and

quality of institutions, and conflict

...  but  also  Intra-­‐FDI-­‐Flow  within  Asian  Countries

South–South economic links 71

!.".## Source and destination of outward and inward FDI flows, selected Asian economies, !$$%–!$$&

Notes: See Figure !.".#!.Sources: See Figure !.".#!.

Direction of !ows:

! South to South South to North (and vice versa) South to o!shore "nancial centers (and vice versa)! !

!

! !

!!

!

!

!

!

$3 billion

$0.7 billion

$38 billion

$7 billion

$10 billion

$2 billion $56 billion(Asia-5 to developing Asia)

$71 billion(developing Asia to Asia-7)

$12 billion

$2 billion$69 billion

$44 billion

$0.2 billion

$1 billion

!

!

!

! !

Africa Latin America Developing Asia

North excluding JapanJapan

O!shore "nancial centers

Other South

O!shore "nancial centersCloser  Pan-­‐Asia  Regional  Collaboration

9

Domestic Export International Multinational Global/Transnational

Domesticmulticulturalism

making an Impact

Ability required to

negotiate and do business

with foreign distributors.

Must adapt approach and

its products and services to local cultures. Global

cultural diversity

strongly affects external

relationships, especially with potential buyers

and foreign workers.

Localized Structure

reduces need for cross-Cultural

awareness.

Need to manage cultural

diversity inside and outside

the firm. All levels need

cross-cultural management

skill for maximum flexibility.

HIGH

LOW

StrategicImportanceof Culture

... higher need ofintercultural competence

for the Asian Leaders

Flat World East-West East-East

Challenges  and  Potential  of    Doing  Business  in  Asia  

for  Asian  Leaders

Ethnocentrism  and  Culture  Relativism

(world-­‐wide  famous)Hardworking  Chinese  

Ethnocentrism

“Everybody  is  hardworking.”

Indonesians Singaporeans

When  Chinese  come  to  work  in  Indonesia:“Indonesians  are  not  hardworking.  They  are  so  relaxed!”

When  Indonesians  go  to  work  in  China:“Chinese  are  really  hardworking!(and  Indonesians  are  at  normal  level)”

When  Singaporeans  go  to  work  in  China:“Chinese  are  really  hardworking!(and  Singaporeans  are  at  normal  level)”

When  Singaporeans  come  to  work  in  Indonesia:-­‐  “Are  Indonesians  hardworking  or  relaxed?”

WEAK HALUS

KASAR STRONGOverdone

Overdone

Four  Values  Quadrant  -­‐  The  double  sides  of  a  coin

Who  you  are  depends  onWhere  You  Are!

❖ Achievement Driven

❖ Professionalism

❖ Facilitative Leadership

Singaporean  Expatriates  in  Indonesia

Chinese  Expatriates  in  Indonesia

❖ Strong Drive

❖ Personal Advancement

❖ Systematic Improvement

❖ Country Brand

❖ Internationalism

❖ Master of Planning

Singaporean  Expatriates  in  China

❖ Exposure to Diversity

❖ Warm and Personable

❖ Integrator

Indonesian  Expatriates  in  China

Developing  the  Global  Competence  

of  Asian  Leader  in  Response  to  the  New  Globalism

Andere Länder, andere Sitten.

Allá donde fueres,haz lo que vieres.

À Rome,fais comme les Romains.

郷に入っては郷に従う.

入乡随俗

Lain ladang lain belalang,lain lubuk lain ikannya.

Tolerance?Differences Harmonization?

Heightened Sensitivity?

Is Cross-Culture Adaptation a Universal Value?

17

“I hear and I forget, I see and I remember, I do and I understand.”

Learning  is  a  process  whereby  the  learners  study  their  own  acGons  and  experience  in  order  to  improve  performance.

While  classroom  learning  focuses  on  presenta;on  of  knowledge  and  skills,  ac;on  learning  focuses  on  research  into  acGon  taken  and  knowledge  emerges  as  a  result  that  should  lead  to  the  

International  Assignment  as  integral  Part  of  Internationalization  Process

• Developing expatriate-profiles and conducting selection

• Preparation of the expatriates and their families (e.g. cultural awareness training, etc.)

• Conceptualization of an escorting system during the assignment (e.g. coaching, mentoring, etc.)

• Return planing and reintegration seminar

• Internal marketing to motivate employee for international assignment

Marketing

Selection

PreparationSupporting

ReintegrationInternational  Assignment

10% - 50% of expatriates returning early from their assignment. Expatriates’ difficulties are costly for MNCs, ranging from $250,000 to $1 million. (Eschbach et al., 2001)

Program background:• An applied research and learning program, collaboration project between RheinAhr Campus of

FH Koblenz (Germany) with the School of Psychology, Zhejiang University (China).

• The program is funded by the BMBF as part of the German-Chinese Scientific Year Program.

• Ge8ng  to  know  the  culture-­‐specific  condi=ons  of  studying  and  working  in  China  and  Germany.

• Defining  central  competencies  necessary  for  German  and  Chinese  employees  to  be  successful  in  the  foreign  job  market.

• Defining  central  competencies  necessary  for  German  and  Chinese  students  in  the  foreign  science  context.

• Developing  cultural  sensi=ve  assessment  procedures.

• Designing  intercultural  media  for  assessment  and  learning.

Main  objecGves  of  the  program:

OBJECTIVEImproving  communica.on  and  coopera.on  between  Chinese  and  foreign  parts  &  Achieving  common  understanding  on  organiza.onal  vision  and  strategy

BACKGROUND- Chinese-European joint venture with main business in high-tech industry, has more than 5000 employees

and an annualized yield of about 4 billion yuan.- The surge capacity from business, intensive industry competition, and ineffective cooperation

and communication between Chinese and foreign staffs became the big challenges to the business development.

EXPECTED RESULT- Understanding organizational situation clearly from different perspectives

- Exploring challenges the organization faced and identifying critical ones- Discovering influencing factors for different challenges

- Developing action plan for the future implementation

Cross-­‐Cultural  Coaching  -­‐  Fit  for  China  (18  hrs  coaching)  • Individualized Assessment and Coaching approach:

... a one-on-one development process formally contracted between a coach and a management-level client to help achieve goals related to professional development and/or business performance (Valerio & Lee, 2005).

Biography &Personality

In-DepthProfilingInterview

Interviewsw. Superiors

around 9 months

Short LectureOverview on China

Coaching discussionCritical Incidents

Behavioral CoachingIntercultural Competence

• Facts  and  Figures  about  China

• Short  history  and  recent  development  of  China

• Business  and  management  prac=ces  in  China  &  APAC

• Recent  cross-­‐cultural  studies  on  Chinese  consumer  behaviors

• 3  hours  classroom

• Coaching  discussion  on  case  studies  and  cri=cal  incidents  in  different  management  areas  in  China  and  APAC.

• Coaching  discussion  on  personal  experiences  in  China  and  APAC  in  the  first  month

• 4  *  90  min  either  f2f  or  phone  or  email

• Observa=on  on  the  real  culture  encounter  situa=ons,  e.g.  mee=ng  or  daily  interac=on  in  the  office  and/or  private

• Coaching  feedback  on  the  observed  situa=ons.

• 4  *  90  min  either  f2f  or  phone  or  email

Behavioral CoachingFeedback &

Development Plan

• Coaching  feedback  on  the  assessment

• Coaching  on  the  crea=ng  development  plan

• 90  min  in-­‐depth  interview2*45  min  interviews  with  superiors90  min  feedback90  min  development  plan

Global  MBA  /  EMBA  Program

Brief  Introduction  of  Research“Building  Global  Competence  for  Asian  Leaders”

Background & Objective

• 90-minute in-depth interview with 110 expatriates from Singapore, China and Indonesia and their local coworkers

• All interview data were recorded and fully transcribed in the original language (English or Chinese or Indonesian)

• Interview data were analyzed using the grounded theory approach

Method

• Elaborating the challenges and problem solving strategies of Chinese, Singaporean and Indonesian business leaders in international cooperations.

• Identifying key learning experiences to develop and sustain intercultural sensitivity for Chinese, Singaporean and Indonesian business leaders.

• Creating learning materials for leadership development programs, e.g. case studies, critical incidents, culture assimilator, etc.

• Instigating recommendations of organizational system to support culturally effective leaders.

Qualitative  Data  Collection  in  Indonesia  and  China:110  In-­‐Depth  Interviews

A series of 90-min In-Depth Interviews will be conducted in China and Indonesia from Nov. 2010 until May 2011 with Chinese, Indonesian and Singaporean business leaders and managers.

In-­‐Depth  Interviews

in  ChinaIn-­‐Depth  Interviews

in  China16

Indonesian  Expatriates16

Singaporean  Expatriates

11Chinese  Co-­‐workers

14Chinese  Co-­‐workers

In-­‐Depth  Interviews

in  IndonesiaIn-­‐Depth  Interviews

in  Indonesia15

Chinese  Expatriates8

Singaporean  Expatriates

15Indonesian  Co-­‐workers

15Indonesian  Co-­‐workers

In China, the respondents are Indonesian and Singaporean expatriates who have been working and living in China for at least one year or more and having leadership experiences; as well as their local Chinese co-workers and counter-parts.

Respectively in Indonesia, the respondents are the Chinese and Singaporean expatriates who are working and living in Indonesia as well as their local Indonesian co-workers and counter-parts.

Organization Type Number

Large Western MNC 16

Large Asian Enterprise 8

SOE Asian 11

SME Asian 23

Others (e.g. SME Western, etc.) 10

Interviewee  ProRile  -­‐  Organization

Interviewee  ProRile  -­‐  Job  Position

Type

Job TitleJob TitleJob TitleJob Title

TotalTypeBusiness Owner /

Entrepreneur

Top / Senior Manager (incl. President, GM,

VP, Director, etc.)Manager Others

Total

CN expatriates in ID 0 8 6 1 15

ID co-worker with CN expatriates 0 1 9 5 15

SG expatriates in ID 1 3 2 2 8

ID co-worker with SG expatriates 1 7 5 2 15

SG expatriates in CN 1 10 8 0 19

CN co-worker with SG expatriates 0 2 8 1 11

ID expatriates in CN 5 5 6 0 16

CN co-worker with ID expatriates 0 1 7 3 11

Total 8 37 51 14 110

Data  Analysis:  Grounded  Theory  -­‐  Framework  of  Study

Interview 1

Interview 2

Preparation: minimizing pre-conception

Theoretical Sampling

In-Depth Interview

Analysis: comparison & sensitizing concepts

Memoing: theorization & integration

Theoretical Outline

Sorting: conceptual sorting of memos

Report & Writing

Research Objectives and Questions

Agreement Disagreement

Exception Explanation

Better Understanding

Grounded  Theory  Analysis  supported  with  Atlas.ti  QDA  software

Professional  BackgroundDr.  Tjitra  has  performed  interna4onal  management  consultancy,  training,  assessment,  coaching  and  research  in  Asia  and  Europe.  His  working  areas  are  focused  on  intercultural  management  as  well  as  human  resource,  organiza4onal  and  strategic  development.Prior  coming  to  China,  he  used  to  live  and  work  in  Germany  for  fourteen  years  and  was  responsible  for  the  global  diversity  as  well  as  Asian  business  and  management  development  prac4ces  of  leading  HR  consul4ng  companies  in  Germany.  In  addi4on  to  his  consul4ng  works,  he  held  a  posi4on  as  associate  professor  for  applied  psychology  at  the  Zhejiang  University  (China).  

Educa.on  and  Professional  Qualifica.onDr.-­‐Phil.  in  cross-­‐cultural  psychology  and  strategic  management  from  the  University  of  Regensburg  (Germany)Dipl.-­‐psych.  in  organiza4onal  behavior  and  HR  management  from  the  Technical  University  of  Braunschweig  (Germany)Cer4fica4on  in  Hogan  Assessment  System  (China/US),  Strategic  Management  from  McKinsey&Co  (Italy/Germany)  and  HR  Management  from  INSEAD  (Singapore/France)  

Language  and  other  qualifica.onHe  is  fluent  in  Indonesian,  German,  English,  and  can  communicate  in  Chinese  and  is  a  member  of  the  Interna4onal  Academy  for  Intercultural  Research  and  Interna4onal  Associa4on  for  Cross-­‐Cultural  Psychology.

References  /  Sample  ClientsInterna4onal  project  experiences  for  top  and  middle  management  at  the  global  and  na4onal  level  in  over  ten  countries  in  Europe  and  Asia.  SAP,  Saint-­‐Gobain,  Barco,  Ameco  Beijing,  SCHOTT,  Siemens,  BASF,  DHL,  Telkom  Indonesia,  etc.

• Intercultural Qualification, Training and Consulting

• Executive Assessment and Coaching

• Talent Development and Management

• Strategic Change and Organizational Development

Prof.  Dr.  Hora  Tjitra

Research Partners:

Funding Partner:

Zhejiang University

Chinawww.zju.edu.cn

Zhejiang University of Technology

Chinawww.zjut.edu.cn

Atma Jaya Catholic University

Indonesiawww.atmajaya.ac.id

Human Capital Leadership Institute

Singaporewww.smu.edu.sgHora Tjitra Hana Panggabean Juliana Murniati Quan HE Daisy ZHENG

Chaohui ZHANG

Teng SHENTUJia ZHOU

Xiaojuan WANG

Dan ZHAO

Xixie ZHANGSebastian Partogi Yuanbo LIU Tayyibah Mushtaq Anggita Hotna Panjaitan

Yang WANG

Thank  You!Contact us via …

E-Mail: htjitra@zju.edu.cnFollow: twitter@htjitraWebsite: http://sinau.me/hcli