Product, Process & Organization · Easier to Change Hard to Change Monday, August 06, 2007 Modeling...
Transcript of Product, Process & Organization · Easier to Change Hard to Change Monday, August 06, 2007 Modeling...
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VDT-IModeling Culture
Raymond E. Levitt and Ashwin Mahalingam Department of Civil and Environmental Engineering
Stanford University
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Presentation Outline
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Modeling Culture 2
Motivating problemsWhat is Culture?How can we operationalize culture?Observations and HypothesesModelingContributions
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Examples of Global Projects
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Modeling Culture 3
Intel Assembly/Test Facility US, Ireland, Malaysia
Intel Assembly/Test Facility US, Ireland, Malaysia
Planet Hollywood restaurants in Asia,
Australia and S.Africa
Planet Hollywood restaurants in Asia,
Australia and S.Africa
Hines development projects in France,
Poland
Hines development projects in France,
Poland
Water Supply Project inSt. Petersburg
Water Supply Project inSt. Petersburg
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High-level Research Problems
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Modeling Culture 4
How can we analyze and predict the effects of cultural differences on Global Projects?
How can we design an organization to ensure optimal performance on a Global Project?
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Modeling Culture 5
How Project Design can Improve the Outcomes of Global Projects
0%
100%
Level of InfluenceLevel of Influence
PlanningPhase
ImplementationPhase
Closeout &Learning Phase
Expenditure of Funds Expenditure of Funds
OutcomeKnowledgeProject DesignOutcome
Predictions
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Theories of Culture
DifferentiationDifferentiationIntegrationIntegration
FragmentationFragmentation
Group CultureGroup Culture
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Modeling Culture 6
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What is Culture? The Integration Perspective
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Modeling Culture 7
A set of shared experiencesThat lead to the development of shared norms, beliefs and valuesThat are subconsciously ‘assumed’ by the groupWhich leads to the generation of accepted practices and behavior
Culture is defined on a per-group basis!!!
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What does culture look like?SymbolsSymbolsHeroesHeroesRitualsRituals
VALUESVALUES
Practices
PracticesEasier to ChangeEasier to Change
Hard to ChangeHard to Change
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Modeling Culture 8
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What is Organizational Culture?
A set of shared beliefs that drive A set of shared beliefs that drive behavior in the workplacebehavior in the workplace
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Modeling Culture 9
Societal Values (Hofstede) Societal Values (Hofstede)
Professional Cultures Professional Cultures (Powell and DiMaggio)(Powell and DiMaggio)
Values of Founders (Values of Founders (ScheinSchein))
Group experiences, marketGroup experiences, marketPressures (Pressures (ScheinSchein) )
Organizational Culture Organizational Culture
} Values} Values
}}PracticesPractices
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What does Organizational Culture look like?
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Modeling Culture 10
Team 1Team 1
Team 2Team 2
National Culture NNational Culture N
EngineeringEngineering
SalesSales
ManufacturingManufacturing
Professional CulturesProfessional Cultures
Shared Shared Experience 1Experience 1
Shared Shared Experience 2Experience 2
Founder Culture OFounder Culture O
OrganizationOrganization
OO
OO
NN
NN
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Sources of Organizational Culture and cultural conflict
OrganizationalOrganizationalCultureCulture
National/Societal CultureNational/Societal Culture
ProfessionalProfessional Founder Founder ValuesValues ExperiencesExperiences
Value Differences Value Differences (first order effects)(first order effects)
CrossCross--Cultural ConflictsCultural Conflicts Practice Differences Practice Differences (second order effects)(second order effects)
Global Project CostsGlobal Project Costs
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DirectDirect CoordinationCoordination Value Diff Value Diff Practice Diff Practice Diff Other Other InstitutionalInstitutional
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How can we operationalize National culture differences?
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Hofstede’s cultural dimensions
Power Distance
Collectivism vs. Individualism
Masculinity vs. Femininity
Uncertainty Avoidance
Long Term vs. Short Term
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A model for cross cultural interaction
NationalNationalCultureCulture
PDIPDIIDVIDVMASMASUAIUAI
Task/MarketTask/Marketneedsneeds
LeaderLeaderCultureCulture
PDIPDIIDVIDVMASMASUAIUAI
WorkerWorkerCultureCulture
PDIPDIIDVIDVMASMASUAIUAI
OrdainedOrdainedPracticesPractices
ExpectedExpectedPracticesPractices
OutcomesOutcomesOrgOrg
ClimateClimate
Inte
ract
ion
Inte
ract
ion
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Case Studies, Observations and Intuition
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Gerald Hines – lack of communication between Texan and ParisiansPlanet Hollywood
miscommunication costs in AsiaLoss of motivation in Japan
HofstedeUAI and PDI define organizational structureLess IDV cultures communicate more implicitlyMAS dimension affects personality conflicts
Increased error rate, decrease in productivity
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Case Studies
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Technological Problems
Political/Legal Problems
Sociocultural Problems
Economic Problems
Gerald Hines - France
Gerald Hines - France
Gerald Hines - Spain
Gerald Hines - Spain
Bechtel - Chile ChilePlanet Hollywood
– PhilippinesPlanet
Hollywood – Philippines
Planet Hollywood – Singapore
Planet Hollywood –
SingaporeNew Chinese
HotelNew Chinese
HotelWater Supply plant – Nigeria
Water Supply plant – Nigeria
Factory – Sri Lanka
Factory – Sri Lanka
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Hypotheses
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Lack of fit between a person’s culture and the organizational structure would lead to motivational problemsDifferences in the IDV scale will lead to unclear communicationsDifferences in the MAS scale will lead to Personality conflicts
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Modeling Processobserve
interview
∆
observe
interview
Test Deductions
∆
Induce a modelInduce a model
Deduce some behaviorDeduce some behavior
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The Model
VDT VDT -- II
VDTVDT CrossCross--cultural interaction cultural interaction modelmodel
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Computational Computational Modeling Modeling TheoryTheory
Organizational Organizational TheoryTheory ObservationsObservations
Institutional Institutional Theory, Theory,
Hofstede et alHofstede et al
Modeling Project OrganizationsModeling Project Organizations Modeling CrossModeling Cross--cultural interactioncultural interaction
Currently AvailableCurrently Available
To be researchedTo be researched
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Relating Culture to VDT
ScheinScheinOrg and EnvironmentOrg and Environment
Nature of Truth and RealityNature of Truth and RealityNature of Human NatureNature of Human Nature
Nature of Human ActivityNature of Human ActivityNature of Human RelationshipsNature of Human Relationships
VDTVDTIPIPEGEGDMDMIEIEACACERER
HofstedeHofstedeUAIUAIIDVIDVMASMASPDIPDI
Hofstede (Org)Hofstede (Org)Loose Loose vsvs TightTight
Norm Norm vsvs PragmaPragmaOpen Open vsvs ClosedClosedEmployee Employee vsvs JobJobParochial Parochial vsvs ProfProfProcess Process vsvs ResultsResults
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Modeling the Hypotheses
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Lack of Motivation Slower processing speed Higher error rate
Unclear communication Increase in errors on attending communicationRecommunication requests
Personality conflictsIgnoring communications (to and fro)
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VDT Modeling Theory
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New VariablesUAI, PDI, IDV, MASAt both individual and Organizational levels
Current Actor BehaviorInformation ProcessingException GenerationDecision MakingInformation ExchangeAttending Meetings
• (and communications?)Reporting Exceptions
} Actor - Org
}Actor – ActorIDV, MAS
PDI, UAI
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Behavior Matrix Transformation
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AB = {IP, EG, DM, IE, AM, ER}CV = {PDI, IDV, UAI, MAS}∆AB = [m]CV
[m] – Transformation matrix∆IP = m PDI + n IDV + o UAI + p MAS
∆AB = ∆ABO + ∆ABAO + ∆ABAA∆ABAO – IP, EG, DM
∆ABAA – IE, AM, ER
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Example Transformation
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Information Exchange AttendanceHigh PDI, UAI cultures attend to information more seriously Low IDV cultures trust and regard information exchange highlyLow IDV attends to high IDV communication
Higher quality of communicationsVFP decreases
High IDV attends to low IDV communicationLower quality of communicationsVFP increases
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Transformation matrices
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PDI, UAI, IDV H (3) M (2) L(1)IE 0.95 1 1.05
AM 0.95 1 1.05N 1 1 1
Cultural Matrix
∆IDV -2 -1 0 1 2
IEAA .95 .98 1 1.02 1.05
AMAO 1.05 1.02 1 1.02 1.05
N 1 1 1 1 1
Cross- Cultural Matrix
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Specific Steps
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Use anecdotes, Hofstede’s book, intuition to generate a set of HypothesesUse these hypotheses to generate initial Behavior Matrices for testingConduct interviews to test behavior matrices and hypothesesModel Behavior in VDTUse real project data to calibrate and validate new VDT model
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Research Contributions
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Integration and synthesis of the current literature on organizational and national culturesGeneration of validated hypotheses that describe behavior effects due to cultural differencesDevelopment of a computational model that can predict how and when cultural differences will affect project outcomesDevelopment of theory that will help project managers optimize organizational performance on Global Projects
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QuestionsQuestions