United States - Mexico Cultural Educational Foundation

1. The Real Crisis A look at the real source of the current global crisis United States - Mexico Cultural Educational Foundation Fundación Cultural Educativa México - Estados Unidos

2. United States - Mexico Cultural Educational Foundation Fundación Cultural Educativa México - Estados Unidos A crisis of culture, not a crisis of law Much has been said about the current global crisis, and there is widespread agreement that it was originated by unethical behavior by the financial community. Unfortunately, the solutions that we are seeing are fiscal and political, much the same as those that were applied to the Enron and WorldCom scandals that were, in effect, first warnings of the real root problem we are now facing… critical incongruence of the cultural system. The only real solution to the problem that has originated the current global crisis, and that will greatly reduce the risk of such a thing happening again, is to ensure that in the future all key organizations – public and private, meet the highest standards of cultural congruency, and cultural effectiveness, two key objectives of Cultural-System Management (CSM) www.usmcef.org

3. “Honesty is the first chapter of the book of wisdom”. • Thomas Jefferson • 3rd president of US (1743 - 1826)

4. United States - Mexico Cultural Educational Foundation Fundación Cultural Educativa México - Estados Unidos Cultural-system incongruence, the unregulated, overlooked, source of crisis after crisis. “Merrill Lynch demonstrates its commitments to clients and shareholders through the firm's emphasis on excellence, integrity and ethical behavior.” “The Bear Stearns Companies Inc. and its affiliates and subsidiaries is committed to the highest level of honesty, integrity and ethics.” These are just samples of “value statements” from two of the organizations that played important parts in detonating the current crisis, organizations that no longer exist. When we analyze their declarations of values (a cultural-system standard), we repeatedly find “integrity” and “ethical behavior”, but we find no operational definition of their meaning; what’s more, the policies and procedures that shaped their real cultural systems were, in effect, opposite to their generally accepted meanings. Even more surprising, there is no regulatory framework to ensure that these incongruencies would not be accepted in the cultural system of an organization. www.usmcef.org

5. United States - Mexico Cultural Educational Foundation Fundación Cultural Educativa México - Estados Unidos Cultural Effectiveness and Transparency Aware of the public and private governance crisis in North America, and the knowledge that the lack of appropriate answers that focused on cultural-system congruence, would precipitate other such situations, the United States–Mexico Chamber of Commerce, through it’s Cultural and Educational Foundation, undertook the development of a unique tool to help organizations manage their cultural systems and ensure true congruence, integration, and effectiveness. The result is the world’s only system, and certification of cultural transparency and effectiveness(CTEC). The CTEC provides tools and methodologies to initiate the Cultural-System management process, resulting in a congruent, effective organizational environment, which in turn, reduces the incidence of ethical and operational crisis, communication problems, and the state of permanent reprocess that are a natural part of any unmanaged system. www.usmcef.org

6. United States - Mexico Cultural Educational Foundation Fundación Cultural Educativa México - Estados Unidos Cultural System Management (CSM) has two main objectives: Why a Cultural Certification? • Cultural clarity, which ensures that cultural standards are fully aligned with organizational strategies, and provides an environment of trust and certainty. • Cultural effectiveness, which standardizes day-to-day organizational interaction under parameters of world-class effectiveness. These are the cornerstones for sustainable ethical congruence, long-term competitiveness, and healthy social growth. The Cultural Transparency and Effectiveness Certification (CTEC) is a tool that accelerates and ensures adequate cultural-system management, by providing benchmarks and indicators for a process that, until now, was perceived as mostly intangible and “soft”. The CTEC also provides a tangible focus point for CSM efforts in the organizatiom, and creates a sense of urgency that speeds the process. www.usmcef.org

7. The Areas of CSM Implementation These are the four areas of organizational activity, that more directly shape the cultural system. The key is to ensure the effectiveness and congruency in each. The CEC has developed the only system for auditing, and certifying each, based on clear, quantifiable indicators. Organizational Knowledge management 5 indicators HR Management Policies & Procedures 4 indicators Internal & External Interaction Processes 9 indicators Cultural Effectiveness of Leadership 3 indicators www.usmcef.org

8. United States - Mexico Cultural Educational Foundation Fundación Cultural Educativa México - Estados Unidos Interested? Contact us to get more information, and even a no-cost* talk on how to manage and certify your cultural system www.usmcef.org *Virtual conference, subject to time and infrastructure availability

9. United States - Mexico Cultural Educational Foundation Fundación Cultural Educativa México - Estados Unidos United States - Mexico Cultural and Educational Foundation 1300 Pennsylvania Ave. N.W., Suite G-3 Washington, D.C. 20004-3021 Tel: (202) 312-1520 Fax: (202) 312-1530 www.usmcef.org Contact Alberto Garcia-Jurado President garcia-jurado@cicultural.com Gerardo Funes Coordinator gerardo@usmcoc.org