(kàn – “to see”, hand over eye)
One of the greatest barriers for continuous business success of foreign owned companies in China is the management of cultural differences.
A major contributor to low performance is “Shadow Management” within the organisation, based on favouritism, nepotism and corruption. An often overlooked and serious downside of the Chinese phenomenon Guanxi.
European CSR and compliance standards are not directly translatable into Chinese business culture, causing profit and transparency to be lost, and sub-cultures being developed.
HAVE YOU EVER ENCOUTERED ONE (OR MORE) OF FOLLOWING ISSUES:
- Micro managing makes everything difficult and proactivity is almost non-existing?
- Decline in profits and growth rate (if there ever was any)?
- A sense of hidden agenda or taking “different paths” than communicated?
- Employee involvement, performance and output declining?
- Abnormal high (blue collar) or very low (white collar) employee turnover?
- Higher costs of operations and sourcing than expectations and budgets?
- Frequent excuses based on “Chinese conditions” for missing targets and budgets?
- Reporting is not transparent, adequate or accurate, and details are missing?
- Difficulties to meet quality targets, and QC resources are expensive to compensate?
- The game and playing field appears familiar, but the real game, responsive patterns, and business strategy is very different.
- Guanxi, nepotism and favouritism is deeply rooted in the Chinese business culture, prevailing rules and regulations.
- Short term profit overshadows long term accomplishments.
- Personal power positioning and relationship building undermine overall business targets.
- Western business culture, values, ethics, and perspectives are not directly translatable to Chinese business environment.
- This in consequence creates offset strategies and control, where personal interests and anarchism can flourish.
THE ROOT CAUSE:
- “Survival of the fittest” is the mantra of Chinese uprising, and Darwinism is extremely present.
- Chinese employees are very focused on personal success, career development, and the next opportunity.
- Cutting corners is the way to get forward in line, already excersised through education and prior carreer.
- Guanxi is the means to a bright future, and networking is just a visible part of a far more complex culture challenge.
- This causes shadow management, hidden agendas, personal preferences, and egocentric behaviour.
The MICTORY APPROACH addresses the symptoms by taking the driver’s seat by:
- Managing the organisation
- Analysing the problem
- Implementing changes, and
- Ensuring perseverance and sustainability,
hereby solving a range of issues:
- Evaluating and optimising the performance of the organisation.
- Shadow Management and hidden agendas.
- Compliance issues with CSR and HQ directives.
- Guanxi strongholds in the organisation.
- Bribery, corruption and nepotism culture.
- Deroute of business performance.
- Lack of transparency and trust.
THE MICTORY APPROACH:
Mictory offers something profoundly different than traditional consulting in the way we approach the individual challenge.
We are hands on, making the change, and delivering the results.
- We are highly experienced in solving exactly these complex business cultural issues, ensuring fast return on investment, and sustainable solutions.
- We are in the front line of implementation and execution, and we guarantee profitable results.
- We already know You are the best in your business, and we support removing cultural layers, increasing the performance to original expectations and become best in China too.
THE MICTORY TEAM:
- Experience. We’ve been there before, ourselves.
- Local and foreign. Our team encompassed both cultures and languages – and we understand the tensions.
- Culture. Our team is experienced in merging Western and Chinese business cultures, and we can interpret the situation.
- Ethics. We know CSR, Code of Conduct and transparency – even seen from both angles.
- Network (or Guanxi…). We have a solid network base to reach out to.
- Team. We have highly trusted Chinese and Danish employees with a solid track record in manifesting facts and results.
OUR DELIVERIES – YOUR BENEFITS
- Reduced cost structure.
- Closing loop holes in local organization.
- Defined localized KPI’s.
- Increased team performance.
- Differentiation between excuses and explanations.
- Analysis of the organization’s overall performance.
- Alignment of organization’s mindset with company targets on HR, QC, CSR.
- Adjustment and alignment of foreign playing field with local playing field.
- Transparency in offset reporting, ensuring correct foundation for decisions.
- Transparency in Chinese market, pricing and business conditions.
- Benchmark teams, suppliers, and distributors.
- Reduction of blue collar turnover.
- Reduction of micro management, enabling strategic, proactive, local management.
- Improved profitability.