This document discusses building a high-performance top management team in an international joint venture (IJV). It identifies several critical challenges IJV top management teams face, including differing shareholder influences and IJV structures, weak organizational identification, lack of cross-cultural understanding, and poor communication. It also discusses the importance of having a shared business focus. The document suggests that to achieve higher potential, IJV top management teams must improve their competence in cross-cultural teamwork. It provides characteristics to consider for Chinese counterparts and notes how collaboration with Chinese partners has changed over the last 10 years.

1. International Joint-Venture:
Building High Performance Team in the Top Management
by Prof. Dr. Hora Tjitra & Daisy Zheng

2. Excellence through Culture, Talent and Change
With the increasing Globalization and international merger and
acquisition, the number of International Joint-Venture (IJV) in
the recent years increasing strongly.
Why some IJVs become Successful
while the others Failed?
IJV: Building High Performance Team in the Top Management_v1.0 / 2010-07 2

3. Excellence through Culture, Talent and Change
The Success of IJV depends very much on:
How Successful the Top Management could ...
Communicate
Interact
Collaborate
as a High Performance Team
IJV: Building High Performance Team in the Top Management_v1.0 / 2010-07 3

4. Critical Challenges for
Top Management Team in IJV
The content presented below is based on recent studies and best practice examples from
Asia (China) on the challenges and potentials in building high-performance team in an IJV.
IJV: Building High Performance Team in the Top Management_v1.0 / 2010-07 4

5. Excellence through Culture, Talent and Change
Critical Challenges for Top Management Team in IJV
Shareholders Influences & IJV Structure
Organizational
Identification
Business Efficient
Focus Communication
Cross-Cultural
Understanding
IJV: Building High Performance Team in the Top Management_v1.0 / 2010-07 5

6. Excellence through Culture, Talent and Change
Shareholder Influences & IJV Structure
Different objectives and strategies
• Development history and plan
• Structure of cost, profit, market, etc.
IJV organizational structure
• Decision making power (equal/unequal)
• Counter part system
Historical background of IJV
• Historical background of different countries
• Development track in the specific industry
International assignment
• Candidate select and assignment process
• Performance management system
IJV: Building High Performance Team in the Top Management_v1.0 / 2010-07 6

7. Excellence through Culture, Talent and Change
Organizational Identification of IJV Top Management Team
Meaning of “WE”
• Self-perception of “where I belong to”
• Guest-Host role perception
• Organization mission, vision and value
Factionalism
Perception of counter part A Perception of counter part B
to counter part B to counter part A
• Counter part B “Comes First” • Counter part A “Comes First”
• No sacrifice for IJV • Little obvious contribution to IJV
• etc. • etc.
IJV: Building High Performance Team in the Top Management_v1.0 / 2010-07 7

8. Excellence through Culture, Talent and Change
Cross-Cultural Understanding
Different Cultural Background and Orientation
Root, tradition and environment Inappropriate cultural expectation
to the counter part
Different cultural backgrounds
Difficulties in local adaptation
Different working ethics and styles
Different understanding and
Other differences conflict in “being professional”
Misunderstanding
IJV: Building High Performance Team in the Top Management_v1.0 / 2010-07 8

9. Excellence through Culture, Talent and Change
Efficient Communication
Language barriers Information intransparency
• Limited English proficiency • Limited communication channel
• Lost in translation • Unclear communication process
“original “received
message” message”
Communication platform Communication nourishment
• Negotiation skills • Willingness & Initiative
• Conflict management • Cross-function relationship building
• Feedback rules • Cultural and diverse interests
IJV: Building High Performance Team in the Top Management_v1.0 / 2010-07 9

10. Excellence through Culture, Talent and Change
Business Focus
Market focus Leading position in industry
• Involvement, understanding and • Follow / Lead industrial trends
support from both counter parts • Contribution / Input from both counter parts
• Identify key account
Ambivalent
focuses
Align with strategy
• International expansion Management efficiency
• Customer distribution • Keep cost and productivity balance
• Short-term and long-term profitability • Updated leadership and management skills
IJV: Building High Performance Team in the Top Management_v1.0 / 2010-07 10

11. Suggested Actions for
Top Management Team in IJV
IJV: Building High Performance Team in the Top Management_v1.0 / 2010-07 11

12. Excellence through Culture, Talent and Change
Chance and Challenge:
Higher Potential Needs a Better Competence in Team Work
Current Productivity Potential Productivity Process Loss
Adler, 1997
An important element here is how the Top Management
Team identify themselves as well as their competence
and sensitivity in dealing with cross-cultural
differences.
IJV: Building High Performance Team in the Top Management_v1.0 / 2010-07 12

13. Excellence through Culture, Talent and Change
Intercultural Team Performance Curve
• Normally intercultural
teams show either a
below or above
Intercultural Monocultural Intercultural average performance.
teams teams teams
• This results amongst
other things from the
handling of different
cultures.
Below average Performance average Above average
IJV: Building High Performance Team in the Top Management_v1.0 / 2010-07 13

14. Excellence through Culture, Talent and Change
Characteristics of Chinese Counter Part
Pragmatic result driven
Select & Assign someone who has:
• professional strong competence
(e.g. with a good track record)
• affinity of Chinese culture
Hierarchy power relationship
Suggestion for Top One from two
counter parts (e.g. GM):
• Come with clear objective
• The identity should belong to the IJV
Personal relationship and trust but not their mother companies
IJV: Building High Performance Team in the Top Management_v1.0 / 2010-07 14

15. Excellence through Culture, Talent and Change
Collaboration with Chinese:
Differences between Nowadays and 10 Years Ago
Limitation of • Language
• Knowledge hina
in C
• Physical 0y
ears
·1
na
n Chi
si
Chinese: y ear
· 10
adapt to the other counter part more na
in Chi
rs
10
yea Chinese:
a· start to take the leading role more
hin
nC
rs i
yea
· 10
hi na
sinC • Economy
ear
10
y
• Knowledge
Development of • Language
IJV: Building High Performance Team in the Top Management_v1.0 / 2010-07 15

16. Thank You
contact us at h.tjitra@tjitra.com