1. Knowledge Management
Consultancy in China
Derek Mitchell
International Business
Technion Multi-Cultural Team Project
Atlanta Module-Fall Semester 2011
2. Team Introduction & Cultural Analysis
• Team Introduction
• Team Process
• Cultural Comparisons
• Chinese Culture
• Chinese Business Culture
3. Derek Mitchell
From USA, 30 years old
Single and full-time student in
Management program
Lives in Atlanta, Georgia
Likes traveling and music
Team Introduction
Faisal Nasir
From Pakistan, 33 years old
Married with 2 children and lives in
Seattle, WA
Works full-time at Microsoft and
Enrolled in part-time MBA at
University of Washington, Seattle.
Likes reading, playing cricket,
volleyball and chess
4. Silvia
Coimbra
From Portugal, 21 years old.
Studying full-time and enrolled
in Master in International
Management program in
Spain.
Likes dancing , music,
traveling
Team Introduction
Bas
Van der Woert
From Netherlands, 21 years
old
Working full-time in ABN AMRO
bank and enrolled in transfer
program in Management in Italy
Likes traveling and going
out with friends
5. Team Process
Initial bond in
the group: life
and family
Flexible and
enthusiastic
team members
Following
instructions
and planning
Decision
making: open
discussion and
consensus
Coordination
and mutual
respect
25%
contribution of
each team
member
Good time
management
Learning about international culture and business
6. Cultural Comparisons
Dominant
Traits
Very
Multicultural
Pride in
history,
religion and
culture
Love
discounts
Extremely
patriotic
Pride in
history,
religion and
culture
Social
Life
Enjoy being
average:
don’t like
attention
Fond of
social
gatherings
and festivals
“Café
Culture”
Prevalent
club and bar
culture
Religious and
Cultural
festivals and
gatherings
Work Life
Hard
workers
Loyal and
passionate
workers
Entrepreneurial
Spirit
Difficulty
balancing
work and
personal life
Loyal and
Passionate
workers
Family
Life
Mediocre
sense of
family
Patriarchal
Strong sense
of family
Moderate
sense of
family
Strong sense
of family and
family
hierarchy
Hobbies/
Leisure
Soccer
Hockey is the
national
sport
Sports:
football is
most popular
Sports
enthusiasts
Dedicated to
traditional
sports and
competitions
7. Chinese Culture
High
Context
Collectivism
Religion
Face
Indirect, implicit communication
Information embedded in non-verbal cues, relationships,
situations and personal involvement
Caters to in-group (similar experiences and expectations)
Community is valued over the individual
Promotes in-groups and group reliance
Taoism: emphasizes spiritual harmony with the individual
and harmonious relationships
Manifest as aversion to conflict, preservation of proper
demeanor and ‘face’
Roughly translates as good reputation, respect or honor
Four categories
Lessened through action or deed and having been exposed
Given through compliments and respect
Developed through experience-showing wisdom by avoiding mistakes
Compliments made to a third party
8. Chinese Business Culture
Literally translates as relationships
Guanxi is the most vital aspect of Chinese business culture
Chinese prefer to deal with those they know and trust
Time and effort must be invested into developing a relationship
before business is conducted and is an ongoing process
Exchanging gifts is normal part of business in China
Business gifts are viewed as debts to be repaid
Must be given for a reason and in front of a witness
Guanxi
Gift
Giving
Etiquette
9. Chinese Business Culture
Work under close supervision
Extreme dependence on leadership
Inequality accepted
Hierarchy needed
Superiors often inaccessible
Power holders have privileges
Punctuality is vital as lateness is perceived as insult
Meetings should include a period of small talk
Do thorough research before entering a meeting or negotiation as your
Chinese counterpart will meticulously plan and research your business
Be patient, never show anger or frustration-negotiations may take
time due to several factors
Lack of urgency
Simultaneous negotiations
Decision makers are not confident
Meetings
&
Negotiations
High
Power
Distance
11. Knowledge Management Systems
• Knowledge Management
• The Business Proposal-Knowledge Management Systems
• Human Resources in China
12. Knowledge Management
Strategies and processes designed to
identify, capture, structure, value, leverage
and share an organization's intellectual
asset to enhance its performance and
competitiveness. KM is based on two
critical activities:
1. Capture and documentation of
individual explicit & tacit knowledge and
2. Its dissemination within the organization
Source: www.thebusinessdictionary.com
13. Business Proposal
Knowledge Management Systems
A consulting company
Development of KMS, implementation and coaching, keeping
in mind the nature and culture of the business
Why Knowledge management?
Support Chinese corporation development
Retain that knowledge so that it can be reused
Create new knowledge by promoting communication
between employees
KM can create competitive advantage in practically
any given industry
14. Business Proposal
Human Resources in China
Collectivism
Good of many over good of
individual
High employer loyalty
Dependence on leadership
Close supervision
Relationships
Sharing
Chinese employees characteristics
create the perfect environment to
implement KM systems.
Implementation should be top-
bottom.
Importance of measurement in
order to evaluate performance
over time.
We will have a Chinese partner in
order to help us develop
relationships with Chinese firms.
16. Business Fit Analysis
Not a unique idea in USA
USA has a very mature Corporate
portfolios with adequate knowledge
management processes
Businesses and people understand
the importance of knowledge
management due to education and
awareness
Power differences are low between
government and people so it is easier
to setup direct contracts with
businesses and companies.
Implementation will not be difficult
due to workforce availability and good
legal system
Low collectivism will increase our
advertising and operation costs to
complete work and/or expand the
business
Industry in general is weak or still
developing so demand would be low in
the beginning
High power gaps between
Government, elite class and public.
Contracts with Government will be
required.
Workforce availability is adequate in
main cities and literacy in major cities
like Lahore, Karachi, Islamabad is high
Long term orientation is low and local
industry is not mature so difficult to
develop long term customer
relationships and risk is high.
High uncertainty avoidance will help in
selling the idea of knowledge
management
Low long-term orientation can
negatively impact the demand for
business
USA Pakistan
VS.
17. Business Fit Analysis
Industry in general is weak or still
developing so demand would be low
in the beginning
Lack of strong legal system may
hinder enforcing contracts
Coalition with government can help
in enforcing business model on
industry due to power gaps
Workforce availability is adequate in
main cities
Portuguese people are humble and
loyal and can be great customers
Low long-term orientation will make
it difficult to sell the idea to local
industry
High collectivism will make it easier
to expand business once we get few
main customers on board
Easier to launch the business
Long history of international trade and
associations
Close-knit business community so
easier to expand customer base
Extremely direct in their
communication and professional in
their business
Promotes smooth customer
interaction and makes it easier to
develop and maintain internal
processes and local employees
Decisions are often consensus-driven
and power differences are not high
Uncertainty avoidance is not low and
individualism is high so efficiency of
individual workers is good
Good legal system to enforce
contracts
Portugal Netherlands
VS.
18. Cultural Advantages and Best Practices
Advantages Best Practices
Invest time to build adequate “guanxi”
Presenting counterparts with
appropriates gifts
Adjust to high context communication
style
Must communicate effectively to build
“guanxi”
Exceptional work ethic and
professional demeanor to increase and
preserve “face”
Loyal employees due to collectivist
attitude and leadership dependence
Long-term business orientation-
emphasizes stability and consistency in
business practices
19. Validating the Information
Jos van der Woert - Businessman in China and Asia
jos.vanderwoert@gmail.com
“Knowledge management allows to enhance continuity and
enables the organization to capitalize on brain trust and
knowledge.
The system allowed us to retain critical knowledge during a
period of high turnover and internal change”.
Desmond Thio - Lived in China, Singapore and Japan
thio277@yahoo.com
“By retaining the historical knowledge and experience of each
individual it provides a collective asset for the organization as a
whole, creating an “organizational conscience.
It ultimately became a competitive advantage in an increasingly
complex business environment that was becoming more and
more challenging to our competitors”.
