MGT 400 Cross-Cultural Management Week 8 Leadership and Globally Distributed Teams Zhen Zhang Fall 2009 Agenda Confirm Presentation II firms and cities Briefly review the assigned cases Black & Decker-Eastern Hemisphere Wolfgang Keller at Konigsbrau-TAK Discussion: Greg James at Sun Microsystems, Inc. -- Eastern Hemisphere Since arriving in Singapore, Lancaster has formulated several opinions about the health of the Eastern Hemisphere organization. What are his concerns both now and for the future? Financial performance Lack of management depth and quality What problems does Lancaster want ADP to address? To develop a unified team of highly committed, competent mgrs.; encourage employees to develop long-term career plans; accountability and teamwork Lancaster himself is a major fan of ADP ,?People who are good at managing ADP also got noticed? -- Eastern Hemisphere What concerns do Asian managers have about ADP? How substantive are these concerns? ADP takes too long, and mgrs. get no immediate rewards for spending all this extra time; mgrs may hurt their short-term performance; language problems 360 degree feedback is difficult for many to accept; confidentiality; politeness, no open up; peer competition for promotions Even if ADP is used, no real impact on development; few opportunities, lacks the money and infrastructure to sponsor training, no financial incentives to support self-development What action should Lancaster take and why: wait, go ahead with a hybrid or full speed ahead with the U.S. version of ADP? Wait: new leaders have a window of opportunity when undertaking major changes; Enough was said about ADP, if he doesn?t act now, he risks losing face Hybrid plan: a jazzed-up MBO, does not promote teamwork or help managers to better understand their subordinates -- Eastern Hemisphere What action did Lancaster actually choose? Lancaster believed that opposition to ADP is a function of weak management rather than legitimate cultural differences; He chose to go ahead ?full speed? with a modified ADP Anita Lim resigned, and Lancaster brought in a new HR manager from the U.S. Full version of ADP was used for managers and professionals; Modified ADP for staff (no subordinate feedback) and union employees (no subordinate or peer feedback) ADP was not modified country by country Lancaster publicly commits to firing anyone who breaks the confidentiality rule Extensive training was provided before ADP was started In year one, ADP was rolled out to senior managers only ADP (three versions) was generally well accepted Wolfgang Keller at - TAK First, what should Keller do about Brodsky? (1) fire or force him out, (2) reorganize around him and appoint Zelenko, (3) coach and counsel to help him improve Outline specific action plans for the solution you choose (i.e., how to implement) What is your assessment of Brodsky?s performance? Please be specific. Evaluate Brodsky?s performance relative to the job requirement; his ability and willingness to perform the tasks Stiffness in social settings; tendency to procrastinate; unwillingness to fit with the open climate; alienation of customers and employees, etc. Strong methodical, analytical skills that are needed in post-turnaround environment; extensive marketing experience in large corporations; meticulous system design; familiarity with Ukrainian markets; a mature, seasoned executive in a country where seniority is important Wolfgang Keller at - TAK How effective has Keller been as a coach to Brodsky? Why? Could you have done better? Why and how? (Un?)due intervention in Brodsky?s department; Unhappy incidents between Keller and Brodsky include: the rapid change to avoid price freeze, weekend calls to distributors, collection of receivables from a near-bankruptcy distributor, resolution of a pending lawsuit (? 1.5 million) Ineffective delegation and coaching, Too much ?doing? and not enough ?leading?; could have used the above incidents to set expectations and coach Brodsky on how Keller thinks the job should be done; maybe take Brodsky with him when he went to collect the bad debt or at least debrief him upon his return Keller?s poor handling of the performance appraisal processes; lacks a two-way discussion of Brodsky?s developmental needs; once-a-year event, lacks a continuous dialogue with Brodsky; usage of language elicit defensiveness rather than true communication; could have set SMART performance goals for Brodsky (e.g., a given number of visits per month to customers); do not let the evaluation form itself to dictate the conversation, use more open-ended questions Wolfgang Keller at - TAK What are the underlying causes of Brodsky?s performance problems? What actions should Keller take upon returning to Kiev? Be specific. Keller?s contribution to this situation; Keller has a hands-on problem-solving style, Keller may not even understand Brodsky?s delegatory style The two-month task force in Brazil was intended to force him to step away, for him to recognize Brodsky?s performance in his absence; But did Keller get explicit/strong message from the headquarter? No, Haussler?s letter may be too subtle What are the implications for Keller?s development as a leader? Leadership styles that were very effective during turnarounds are not appropriate for stable environment and managing in greater scope and scale Keller?s low self-awareness of his ingrained behavior; to be a corporate firefighter / turnaround artist OR to be a successful executive in a large stable company Empathy with those who have different leadership styles; cooperation with bureaucrats and protocols in the headquarter Wolfgang Keller at - TAK What happened afterwards? Upon returning to Kiev, Keller found Brodsky has done surprisingly well in his absence, Brodsky became more relaxed around the office Keller decided to change, to step back and to delegate more and coach and counsel subordinates For example, Keller set up two in-boxes on his desk, one for routine matters, and another for urgent matters that cannot be acted on for at least 24 hours Offered Brodsky a raise of 16% (an 8% annual increase). That was too late; Brodsky left the company, feeling that Keller?s earlier interference had damaged his credibility with his subordinates After 18 months of searching, the internal candidate Zelenko was promoted to his position Five years later, Keller was named a member of the Vorstand, the company?s chief executive office Interpersonal problems that threaten to unravel a virtual team The absence of verbal and nonverbal cues using asynchronous technology A limited social context, leading to the lack of trust The inability to overcome time and space constraints Inequity among sub-teams (ethnocentrism, we vs. they; in-group vs. out-group) Managing a global team: Greg James at Managing a global team: Greg James at How well has James managed his global team? Who is responsible for the HS Holding crisis? What role did the ?Open Work? environment play in the case? Benefits and draw-backs What role did diversity play on this team? Culture and national labor laws What should James do in the short term and in the long run? Managing a global team: Greg James at How well has James managed his global team? From 1 (not at all well) to 5 (very well) His poor relationships with members; letting problems escalate, not taking full responsibility for the crisis Done a good job trying to keep the big picture in mind, while managing the details he could; SUN may be responsible for focusing too much on innovation, too little on team building Who is responsible for the HS Holding crisis? What was going on in the two hours of outbreak? The chronology of the incident from differing perspectives Process problems and interpersonal conflict Time zone, task (US team creative work, Indian team maintenance work), language, culture (doing business in Dubai takes long time), compensation, team size (India 16) Lack of sharing contextual and task information: what the queue was supposed to do? Why didn?t Nick Elliott update client?s new telephone# ? Managing a global team: Greg James at What role did the ?Open Work? environment play in the case? Benefits and draw-backs Indian team is the less satisfied and the U.S. team is the most satisfied with ?Open work? Is this U.S.-based flexible system easily transferable to other countries? What role did diversity play on this team? Cultural diversity and lack of interaction gives them little opportunity to dispel their stereotypes Mumbai and Dubai teams (Ahmed Nazr is Pakistani and Ashok is Indian) National differences in labor law French employees are supposed to have shorter work weeks and longer vacations, but they do work 50 hours a week; French team has lower salary than the U.S. teammates Managing a global team: Greg James at What should James do in the short term and in the long run? Creating an overarching team identity (who we are as SUN representatives) Formalized feedback; team goals, increase face-to-face interaction, have informal spontaneous communication, visiting each other Change the incentive structure to a team-based one Rotation of team members across countries Reschedule or restructure the weekly conference calls Change the communication technology for more collaboration (Maybe) live in the countries where his team works Managing a global team: Greg James at An update on James and his team Weekly meetings with team managers (rather than all members), and these managers meet with their members Bi-weekly one-on-one ?skip-level? meetings with engineers in France, India, the U.S., and U.A.E. James is available for spontaneous interactions using instant messaging, phone calls, and email Using a case management tool, James can click on a person?s name at any time and find out exactly what they are currently working on Established an overall sense of ?taking-care-of-business? Time zone Used weekday protocol ? early Monday afternoon in Mumbai Should have used weekend protocol ? still Sunday night in California French team works more hours than required by law, Indian team works 15.5 hours on the days of weekly conference calls
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