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Synergy or Misery

Synergy or Misery. Multi-cultural Coaching Initiative Enhances Success Rate of Global Integration Effort EMCC Conference 2007 . Workshop Goals . Recognize key elements to increase success rates in global integration efforts

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Synergy or Misery

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  1. Synergy or Misery Multi-cultural Coaching Initiative Enhances Success Rate of Global Integration Effort EMCC Conference 2007

  2. Workshop Goals • Recognizekey elements to increase success rates in global integration efforts • Identifythe impact of culture on the coaching process and the selection of coaches • Review a coaching strategy for a German-American-Canadian integration project • Understand the needs of senior executives and learn to design a coaching process accordingly • Establishmeasurements, and tools to collect them

  3. As economic borders come down, cultural barriers go up

  4. Success Rates of Multi-Cultural Integrations • The success rate of mergers & acquisitions is low (30% – 50%). Success rate of German-American mergers & acquisitions is even lower. Source: Kai Lucks, Chairman - German Association of Mergers & Acquisitions • 70% – 85% of cross-culture integration efforts fail or don’t live up to their expectations. • 40% fail in the first four years • 44% destroy value • 60% of shortfall in expectations are due to cultural and human factors. Source: Rainer Benz - Int’l Issues in Mergers and Acquisitions

  5. Key Success Factors for Multi-Cultural Integrations Please define the key elements which need to be present to create successful global integrations

  6. Key Success Factors for Multi-Cultural Integrations • Common future (Vision, Mission…) • Common values, Code of Conduct • Trust across cultures • Cultural know how of key integration personnel • Personal alignment of Senior Executives (Leadership Role Model) • Team alignment of Senior Executive Team (Interaction Role Model) • Key drivers for change identified (Beliefs, Motivations) • Measures for change process established • Consistent implementation • Extensive communication • Alignment of rest of organization

  7. Why Did The Company Implement a Coaching Program? Status Quo - At The Beginning • Integration of a formerJoint Venture (49% Japanese owned) into the organization failed • CEO laid off • Acting CEO defined (former Sales Manager) • New CEO search planned • An independently acting North American assembly plant in Canada • New building to establish a Northamerican Headquarters (US) • Reorganization of local reporting lines • Changes of local leadership personnel • Need to take over strategic responsibilities from German parent company

  8. Why Did The Company Implement a Coaching Program? Output of first contracting meeting – Business Goals • Successful integration of a former 49% Japanese-owned joint venture partner • Successful integration of an independently acting Canadian-based assembly plant • Establish a North American Headquarters with a new organizational structure geared toward operational and strategic responsibilities with transparency and open communication.

  9. Coaching in a Multi-cultural Environment • Coaching is a US based concept based on values like: • Constant personal enhancement • Quick establishment of trust with a stranger • Discovering things for oneself • Characteristics of a “trusted leader” or an “effective team” in different cultures are often widely different from US ideals • For many coaches this change from a ethnocentric to a multi-centric perspective requires to work outside their comfort zone: • Adjust expectations • Adjust tools • Adjust Style

  10. Criteria to Select The Coaching Partner? • Business and cultural experience (dual citizenship, 7 years CEO in foreign-owned organization) • Coaching experience with other international clients • Professionalism • Personal chemistry • Openness and clarity during interview

  11. Strategic Coaching Goals Output of second contracting meeting • Establish and implement a shared corporate culture • Refresh and expand the senior executive’s global leadership and teambuilding capacity • Develop an effective, unified executive team • Increase the level of trust and open communication • Increase cross-cultural awareness and understanding • Implement key management practices (goal/project management)

  12. Human beings are similar by nature. It’s the experience of living that makes us so different. Confucius

  13. “Common Sense” is almost never “Culture Sense.”

  14. Cultural Characteristics US • Security from relying on oneself • Improve oneself, Do what it takes • Independence, Individuality • Trust is easily given • Quick, functional relations Germany • Security from being part of a group and avoiding uncertainty • Make no mistakes, rules, order • Hierarchy, Authority • Trust must be earned • Relations precede business

  15. Cultural Characteristics Canada • Multiculturalism, • Tolerant, but critical of US • Low key, uncomplicated • Life and social balance • Methodical India • Trust based on social status and position in network • Much is outside control of individual • Harmony (don’t say “no”) • Relations often valued more than expertise • Male oriented hierarchy

  16. What Was the Coaching Process? Headquarters Integration (Phase 1) - 8 Months Process • It all starts with the Leader (Acting CEO) - 2 days one-on-one workshop - Increase awareness about individual and cultural motivations, strengths and weaknesses - Define personal and professional development goals - Establish action plans • Kick off in the Management Group - 3 day off-site management retreat- American-German cross-cultural training - Team building by sharing strengths and weaknesses - Team alignment (mission/vision, common goals) • Establish a baseline measurement

  17. What Was the Coaching Process? 20 hours Individual Executive Coaching, focused on - Role Model Leadership Behavior - Goal/Project Review - Personal/Team Development Goals - Front Burner Issues - Relationships - Cross Cultural Situations 5 half day Team Coaching Meetings, focused on - Meeting/Interaction Culture - Relationship & Awareness - Conflict Management - Vision, Mission Statement and Working Agreement Follow-up Feedback(Coaching Results)

  18. What Was the Coaching Process? Canadian Plant Integration (Phase 2) - 6 Months Process • It all starts with the Leader (Plant Manager) - 1 day one-on-one workshop • Kick off in the Management Group - 2 day off-site management retreat • Establish a baseline measurement • 10 hours Individual Executive Coaching • 3 half day Team Coaching Meetings • Follow-up Feedback (Coaching Results)

  19. Coaching Tools • Assessments • 360ºfeedback • MPPT team assessment (adapted from Niemela/Lewis) • Culture Survey • Culture and personality adaptation • Motivational and cultural iceberg • Birth order • Vision, Mission, Common Goal development • Value definition and outline of an operating agreement • Effective conversations (including giving feedback/conflict resolution) • Design of effective meetings • 9 levels of delegation • Role clarification

  20. Development Results Personal Growth of Leader Personal Improvement in focus areas: 92.5% to 180% Promotion to CEO and President Team Building, Alignment and Trust Building MPPT Team Assessment, improvement in focus areas 14% to 81% Team Development Goals 52% to 173%

  21. Individual Development Results

  22. MPPT Team Assessment Results – Focus Areas

  23. MPPT Team Assessment Results – Untargeted Areas

  24. Team Development Results

  25. Business Results Culture Change • Nearly 60% are “aligned” or “fully aligned” with new culture • Benchmark in the Global Group Business Measures • A vision / mission / values statement is developed and communicated • A cascading goal management system is in place • A project management process is established. • Plant Integration Coaching ROI =22

  26. Thank You Enjoy the ride

  27. Contact US Franz Neumeyer • www.global-Synergies.com • fneumeyer@global-synergies.com

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