Karin Ellis - Cultural awareness as a tool to succeed with global sourcing @ First Tuesday Bergen 4 Juni 2013

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Cultural awareness as a tool
to succeed with Global Sourcing
Karin Ellis
Ellis Culture and Consulting
4 June 2013
karin.ellis.ke@gmail.com
www.ellisculture.com
© Ellis Culture and Consulting
Ellis Culture and Consulting
• 30 years’ experience from large companies
– Working internationally
– Multicultural projects
• Experience from ICT and Global Sourcing
– Hydro Data, Hydro IS Partner
– EDB, EDB ErgoGroup -> EVRY
• Trainings based on practical experience
– Business and social life
– Cultural interviews
• Practical oriented and quick courses
– 2-3 hours
– Improved communication and
cooperation with other cultures
– Practical scenarios
© Ellis Culture and Consulting 2

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Ellis Culture and Consulting
Norway: Karin Ellis
CEO, International Culture
Russia/Ukraine: Sofya Kapustina
International Culture
Norway: Ingvar Vik
Manager, Organizational Development
Ukraine/Norway: Anatoliy Kyrylyuk
International Culture
© Ellis Culture and Consulting 3
• Analysis and advice to Western investors
– Ukraine, Russia, Kazakhstan and Belarus
• Opportunities
• Strategic risks analysis
– Identifying issues
– Roadmap for risk avoidance
• Extensive international network of associates
• More than 30 years of experience
• Familiar with the ICT industry
Eastern Europe Group (EEG)
Contact info:
www.eastern-europe-group.com
Managing Director: Henrik Seip
Tel.: +47 92619686
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Norwegian business culture
• The odd one out!
• Cannot be applied uncritically
to other countries and cultures.
• An awareness of this is
necessary to succeed
in other cultures
© Ellis Culture and Consulting 5
Failures of offshore projects
• Bad communication
– Language problems
– Interpreting signals wrongly and handling them badly
– Missing, incompetent or insensitive communication
• Lack of cultural awareness
– Lack of understanding the cultural differences
– To little focus on relationship and trust building
– Wrong use of hierarchy and authority
– Not showing enough respect
– Lack of follow up
• Avoiding conflicts
– Treating people like objects or machines
6© Ellis Culture and Consulting

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Cultural
aspects
© Ellis Culture and Consulting 7
Educational system
• Soviet system
– Strong discipline
– Detailed instructions
– Follow up
• Little room for
– Initiative
– Creativity and innovation
– Free thinking
– Filling in the gaps
• Work methods
– Less focus on comprehension and retention
© Ellis Culture and Consulting 8

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Management style
• Control based
– Not used to freedom with responsibility
• Ukrainian managers
– Are authoritarian
– Give detailed orders
– Expecting sacrificed
• Manager has detailed information
– Competence and weaknesses
– Private lives
• Hierarchy is very important
© Ellis Culture and Consulting 9
Ukrainian employees
• Used to
– Detailed instructions
– Work checked and evaluated
– Making sacrifices for the employer
• No culture for trusting the boss
– Good people seldom become managers
– Skeptical
– Tell the boss as little as possible
– Introvert
• Fear of losing the job
© Ellis Culture and Consulting 10
“I am the boss
and you are a
….”

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Hierarchy and authority
• Clearly defined hierarchies in all settings
– The parents are the highest authority
– The employer is to be respected
– Clear authority structure
• Large power distance
– Limited influence
– Fulfil the command
– Not question or try to
challenge the decision
© Ellis Culture and Consulting 11
Lack of social security
• Government not trusted
– Relying only on themselves or family
• Strong and reliable employer
– Financial and social stability
– Personal sacrifices
– Criticising the employer -> economic disaster
• Social network is important
– work place and how people work
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© Ellis Culture and Consulting 12

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Uncertainty avoidance
• Less faith in the future
– Today’s benefit most important
• Cannot afford to take risks
– Less social security
– Less job protection
• Safe choice is best
– Important not to make mistakes
– Avoid conflicts
– Avoid uncertainties
– Cover for each other
© Ellis Culture and Consulting 13
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Some tips
for Global
Sourcing

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Tips for Global Sourcing
• Clean up before sending tasks offshore
– Specification
– Documentation
– Processes
• Reduce the complexity
– Structured tasks
– One task at a time
– Clarify the task
– Independent tasks
– Goals for input, processing and output
• Be clear and state your expectation
– Deadlines
– Consequences of delays
• Check the understanding
– Open questions
– Memo of understanding
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Enhanced leadership style
• Motivational factors
– Appreciation of hard work
– Interesting tasks
– Clear expectations
– Teambuildings, courses, cultural trainings
• Create a common understanding
– Strategy, vision and goals etc.
– How to cooperate (e.g. use of hierarchy)
• Ensure necessary training
– Also teambuilding, cultural training
• Use the best from both cultures
– Find out what they are good at
– Use the competence where available
• Regular travelling is needed
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Building ONE team
• Focus on ONE team
– We are in this together!
– Involve all parties
• Planning and information flow
– Proactive support for the group
– Appreciation of their work
– Interesting tasks
• Understanding their culture
– Explore the differences
– Different ways to cooperate
– Local traditions
• Enhanced focus on building relations
– In early phase
– When problems
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Build trust and relations
• Share information
– Frequent meetings
• Show an interest
– Small talk
– Include everyone
– Socialize outside work
– Be a good role model
Answer their emails!
• Create room for
– Asking questions
– Being honest
– Admitting errors
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Building trust is very
important with Ukrainians!

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Benefits from intercultural trainings
• The full potential of Global Sourcing
– Predictability
– Improved
• Communication
• Working environment
• Quality
– Reduced risk
• Financial loss
• Loss of reputation
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Do you want to learn more?
• Our trainings are quick and business-oriented.
• Achieve better communication and cooperation in just 3 hours.
• Contact us for training or consultancy for your company.
• We also conduct trainings outside Norway.
Some examples of our trainings:
 Working with Ukrainians
 Working with Norwegians
 Working with Romanians
 Working with Balts
 Working with Indians
 Working in a multicultural environment
 Project management in a
multicultural environment
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Contact information:
www.ellisculture.com
karin.ellis.ke@gmail.com
Tel.: +47 911 83 895