Implementing PRO Systems Across the Globe: Overcoming Cross Cultural Barriers

Mehran FarahmandMay 10, 2001

Agenda

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

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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.

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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

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Cultural Influences

Business

Business

Processes

Processes

Peo

ple

Peo

ple

Information Information SystemsSystems

PRO Themes

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Question

• Define Culture

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“Culture is Communication &

Communication is Culture”

Edward T. Hall“The Silent Language”

What is Culture?

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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

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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

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Communication/Gestures

• “Aizushi”• Paying attention in a meeting• Looking in the eye• Other gestures

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Eating/Drinking

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

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Time

• Patience as a virtue• Impatience as a virtue• Ensha-allah

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Space

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

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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.

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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?

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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?

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Conceptions and Misconceptions

• Not without My Daughter

• Salaam Bombay

• Dallas

• Miami Vice

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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)

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Power Distance• Distribution of power in the group and the tolerance /

expectation of inequalityPDI Low High

Inequality Bad Expected

Hierarchy Rough Smooth

Management Available Inaccessible

Superiors Equal On a pedestal

Change Evolution Revolution

ExamplesAustralia, Israel,

New ZealandPhilippines, Mexico,

India

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Uncertainty Avoidance• Avoidance of unknown, embracing the familiar

UAI Low High

Procedures Adhoc Formal

Rules Limited Lots

Feelings Shown Less Shown More

Competition Fair Unfair

Disagreements Normal Unusual

Risk Embrace Avoid

Judgement Facts, Data Intangible

Examples Singapore, Denmark, Sweden

Greece, Japan, France

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Individualism vs. Collectivism:

• “I” versus “We”

IND Low High

Interest in Self Group

Values Same for all Different for in and out groups

Examples Venezuela, Mexico, Japan

U.S., Australia, U.K., Netherlands

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

MAS Masculine Feminine

Value Achievement Quality of Life

Success Tangible Intangible

Examples Japan, Mexico, U.K. Sweden, Norway, Netherlands

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Example: Application of Management by Objectives

UAI

PDI

100

100

France

U.S.

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Example: Cultural Implication On How We Run a Project

UAI

PDI

100

100

Japan

U.S.

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Volunteer Needed

• One volunteer

• 15 seconds each

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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

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Money ….Yes….but…...

• Decrease cost• Increase revenue• Serve the nation• Make employees happy• Reduce workload

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Revenue Management Processes

Develop Product

Promote Product

Manage Supply

Manage Demand

Deliver Product

MaintainDistribution

Channel

Sell Product

Organization Structure

Information Technology

Cultures Impact our Work Processes

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One More Volunteer Needed!

• One volunteer

• 15 seconds

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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 】

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Q & A