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Implementing PRO Systems Across the Globe: Overcoming Cross Cultural Barriers

Implementing PRO Systems Across the Globe: Overcoming Cross Cultural Barriers. Mehran Farahmand May 10, 2001. Agenda. What is culture? How do people from different cultures behave? Why do we (should we) care? Q & A. What is Pricing and Revenue Optimization (PRO)?.

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Implementing PRO Systems Across the Globe: Overcoming Cross Cultural Barriers

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  1. Implementing PRO Systems Across the Globe: Overcoming Cross Cultural Barriers Mehran Farahmand May 10, 2001

  2. Agenda • What is culture? • How do people from different cultures behave? • Why do we (should we) care? • Q & A

  3. What is Pricing and Revenue Optimization (PRO)? It is a disciplined process of determining: what products and services should be offered to which customers, at what prices, through which channels in order to maximize profits and win the business.

  4. Finland • UK • Denmark • Canada • Germany Ireland • • Netherlands France• • Switzerland • USA • Spain • Italy • Japan • Israel • Iran • Mexico • Hong Kong • Thailand • Singapore • Brazil • Chile • New Zealand World According to AGIFORS

  5. PRO Themes Cultural Influences • Business Processes • People • Information Systems

  6. Question • Define Culture

  7. What is Culture? “Culture is Communication & Communication is Culture” Edward T. Hall “The Silent Language”

  8. Country Culture Impacts Organizations • Think of it as the soul of the organization • Identify the symbols • Determine what people value most • Listen to the “stories” • Recognize the unwritten rules

  9. Your “Position” in the Society • How you are addressed • How you address others • Where you are invited to sit • Where you sit • Walking in front of others • Greetings and show of affection

  10. Communication/Gestures • “Aizushi” • Paying attention in a meeting • Looking in the eye • Other gestures

  11. Eating/Drinking • Honto • Drinking sake in Japan • Passing the sake cup in Korea • Not drinking and driving in America • Sharing food • Hygienic Sushi

  12. Time • Patience as a virtue • Impatience as a virtue • Ensha-allah

  13. Space • Your office • Showing home to the guest • Saving the best room for the guest • The comfort zone

  14. Questions • What is the biggest misconception of your country (culture)? • Pick any other country and write it down. • Mention the first image or thought that comes to your mind you think of the culture or people of this country.

  15. Any Thoughts? • Who picked India as his/her country? • Who picked Mexico as his/her country? • Who picked New Zealand as his/her country? • Who picked Denmark as his/her country?

  16. Any Thoughts? • Who picked America as the other country? • Who picked Belgium as the other country? • Who picked China as the other country? • Who picked Iran as the other country?

  17. Conceptions and Misconceptions • Not without My Daughter • Salaam Bombay • Dallas • Miami Vice

  18. Hofstede’s Model • Explanations of cultural differences bases on 4 criteria • Power distance (PDI) • Uncertainty avoidance (UAI) • Individualism vs. collectivism (IDV) • Masculinity vs. femininity (MAS)

  19. Distribution of power in the group and the tolerance / expectation of inequality Power Distance

  20. Avoidance of unknown, embracing the familiar Uncertainty Avoidance

  21. Individualism vs. Collectivism: • “I” versus “We”

  22. Hard core successvs. soft-core caring Masculinity vs. Femininity

  23. UAI 100 France U.S. PDI 100 Example: Application of Management by Objectives

  24. UAI 100 Japan U.S. PDI 100 Example: Cultural Implication On How We Run a Project

  25. Volunteer Needed • One volunteer • 15 seconds each

  26. Culture Vision • Leadership • Organization • Tools & Systems • Jobs People Strategy Perform • Processes • PerformanceMeasurement & Feedback System • DecisionMaking Plan Cultures Impact All Aspects of the Organization

  27. Money ….Yes….but…... • Decrease cost • Increase revenue • Serve the nation • Make employees happy • Reduce workload

  28. Revenue Management Processes Develop Product Promote Product Maintain Distribution Channel Manage Supply Manage Demand Sell Product Deliver Product Cultures Impact our Work Processes Organization Structure Information Technology

  29. One More Volunteer Needed! • One volunteer • 15 seconds

  30. Great Sources Used Here • Greet Hofstede • “Culture’s Consequences:International • Differences in Work-related values” • Edward T. Hall • “The Silent Language” • Albert Camus • “L’etranger” • Mehran Farahmand • “The Shadow: Running Circles Around the Past” 【Work in progress】

  31. Q & A

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