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Cross-Cultural Leadership for Change Management in China

This summarizes the key points for successfully leading a PMS (Performance Management System) project in China. The challenges were cultural, behavioral, and complex. The stakeholders were NOT always aligned nor committed towards a common purpose. Business goals were often NOT aligned with the personal goals of the individuals involved. <br><br>BUT, we managed to deliver successfully on all milestones, on time!

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Cross-Cultural Leadership for Change Management in China

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  1. CASE STUDY Leading Change in Complex, Multicultural Environments

  2. Harmonious Execution (Overview)

  3. 1 3 2 5 4 Achieve financial target  (explicit) Align PMS implementation with local commercial sales activities  (implicit) Implement a Key Account Management (KAM) strategy  (explicit) Integrate and leverage expertise of internal consultant  (implicit) Achieve behavior change of local salespeople (implicit)

  4. Strategic Challenge

  5. The client is the China business unit (BU) of a Dutch global business group (BG) that produces raw materials (CPL) in a joint venture (JV) arrangement with a Chinese state-owned enterprise (SOE) Our “soft” challenge was to persuade salespeople who were transferees from a Chinese SEO with deeply embedded “Iron Rice Bowl” mentalities to learn new concepts and change behaviors

  6. The “Iron Rice Bowl” concept refers to the Chinese mindset of having government granted, lifetime employment where new ideas/behaviors are neither beneficial nor rewarded CONCEPT

  7. QUESTIONS What do you do when regional participants assigned to lead a project are not 100% aligned with the global division that chartered it? How do you bridge the cultural divides?

  8. Key Account Management (KAM) is an organizational change, not a sales technique, used by business-to-business (B2B) suppliers to manage their relationships with strategically-important customers for mutually beneficial long-term relationships CONCEPT

  9. QUESTIONS How do you align milestones and deliverables with normal client work procedures that are out-of-scope with the project? How do you keep the project on track when the client faces more urgent priorities?

  10. Harmony, harmony, and more harmony Establishing trust and credibility first (building “guanxi” relationships) Approach

  11. QUESTIONS How do two independent consultants work harmoniously within the same project? What is the best approach when there are language and cultural barriers?

  12. Chinese “Guanxi” refers to the nature of ones relationship with another. It describes ones personalized network of influencers and is the cornerstone of all personal and business success in China CONCEPT

  13. QUESTIONS How do you align multiple stakeholders with different goals? How do you keep the project on track when unforeseen disruptions occur?

  14. Keys For Success Listen (to the client) Professionalism (stay focused on the goals without emotion) Execution(kept all activities on schedule in the face of adversity) Flexibility(to adapt to the unique characteristics of the client’s needs) Diplomacy(giving all stakeholder “face” to maintain harmony)

  15. Win-Win Outcome

  16. Our work stream achieved its financial stretch target

  17. All stakeholders were able to save “face”, and we paved the way for the client to continue this project for another year

  18. Read More… www.linkedin.com/pulse/case-study-leading-change-complex-multicultural-environments-gene-hsu

  19. Gene Hsu China Consultant | Cross-Cultural Management Instructor | Executive Coach | Career Mentor | Event Host www.linkedin.com/in/emecareer/

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