
Bimonthly Journal of International Business
| Volume 3, No. 1 |
January/February
2004
|
GlobalExchange is Global Dynamics,
Inc's quarterly newsletter, designed to provide our readers with
current news and information relevant to global executives. Browse
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to accommodate all requests in upcoming issues.
Cross-Cultural
Awareness
SIETAR Presenter Contrasts Attitudes
about Racism – At
the recent Society for Intercultural Education, Training
and Research (SIETAR) USA Conference in Austin, Texas,
presenter Ilya Adler made the observation that in Latin America,
although racism exists it is largely ignored, while
class differences receive a lot of attention. He further noted
that class differences are ignored in the United States while racism
receives significant attention. How do you explain
this apparent anomaly? Send your comments to Global Dynamics at globalexchange@global-dynamics.com with “comments” in
the
subject line.
Copilots? – Recently
Air France and KLM announced that the two companies would merge
to create Europe’s largest airline under the banner
name Air France-KLM. Each company will maintain
its brands, hubs and networks. Fons Trompenaars, an international
consultant and author who is half Dutch and half French, described
the merger of the two national airlines as “really not easy” in
an article appearing in
Expatica, an English language news and information source for
expatriates working on the European continent.
His advice to the two partners is “to
become well aware of the cultural gaps in the
first place, and then to move on to a phase where they build
mutual respect.” For more information,
visit www.expatica.com.
Understanding the Value of Cross-Cultural
Education and Training – In
today’s global business climate, cross-cultural
education can make a difference, and its effectiveness
can be linked to business results. John Schieman’s
article in Mobility Magazine during
the first quarter 2004 tells how, and demonstrates with a
case
study. For more information, contact John
Schieman at jschieman@global-dynamics.com.
The Potential Hidden
Costs of Offshore Operations – Outsourcing
operations to developing countries such
as India and China remains a hot topic in the global marketplace.
There are several factors that contribute to this trend.
But not all offshore outsourcing produces
the expected return on investment. Aside from the cost saving attributed
to wage differential, global managers increasingly find
that cross-cultural issues significantly
impact the bottom line. Sweetheart Cup Co. CIO John McGregor told
InformationWeek that “the project struggled because
of communication problems relation to
cultural differences. There was an unwillingness to tell
us that this isn’t going to work.” For
more information, visit www.informationweek.com. Global
Dynamics (GDI) is working with some of the leading outsourcing
organizations to develop policies and
practices for improved performance.
Cross-Cultural Training Case
Study: Telstra – Recently the
Australian Financial Review reported
that Telstra, an Australian mobile phone, internet and
wired telephone service provider,
announced it would move 1500 jobs to India. Telstra expects
to cut $957 million from the cost
of running its existing information technology over the
next three years. Jeff Smith, the
company’s Chief Information
Officer, employed training specialized
in cross-cultural teaming to manage the transition. His
message to Telstra employees
indicated the company needs “to actively change
the way we do business as we begin
to work with global service providers and move to build
and maintain intellectual property
in-house.” His comments reflect
a concern within the technology sector
regarding intellectual property and knowledge transfer
when moving operations offshore.
For more information, visit www.afr.com.
Cultural Diversity
Quiz – What country has the largest
number of ethnic Japanese living
outside of Japan? What country has the largest number
of ethnic Italians living outside
Italy? What country has the most people of African decent
living outside Africa? The answer
to all of these questions is the same country- the largest
Portuguese-speaking country in the world: Brazil.
Working
Globally
Low-cost Travel and Communications
Creates Global Teams – Expatica
recently ran a feature story on “commuter expats.” Based
on inexpensive air travel and telecommunications, Europeans
are increasingly living in one country and working in another.
The article speculates that it is probably cheaper, easier and faster
to travel from Barcelona to London than from London to Manchester.
For more information, visit the Expatica website at www.expatica.com.
US
Company Sued for Alleged Human Rights Violations Committed Overseas – In December,
Unocal Corp. became the first U.S. company to reach the trial stage
for alleged human-rights violations committed overseas
under the federal Alien Tort Claims Act of 1792, which
permits foreigners to sue one another in U.S. courts. The fundamental
question is whether a U.S. parent company should be held accountable
for the actions of its partners. This case could set a major precedent
for all international joint
ventures.
Japanese Expats Expected to
Top One Million by 2006 – Recently
the Japanese Foreign Ministry reported that 874,000
Japanese lived overseas for more than three months
in 2002. Since 2001, Japanese living in China has increased by
20 percent to 64,000. Over the same time period,
Japanese living in North America grew by 1.4 percent
to 352,000. The Ministry further indicated that 30.1 percent of
expatriates left behind their families in 2002,
compared to 16.2 percent in 2001. For more information,
visit the International Herald Tribune website at www.ihr.com.
USA
Patriot Act Impacts Inbound Travelers – The U.S.
State Department (DOS) recently issued an advisory
for persons entering the United States under the Visa Waiver Program,
indicating that travelers must have a machine readable passport
effective October 1, 2003 to comply with the
USA Patriot Act of 2001. The Visa Waiver Program permits
citizens from the twenty-six participating countries to enter
the United States for general business or tourist purposes for a maximum of ninety
days without needing a
visa. For more information, visit the DOS website at http://travel.state.gov/vwp.html.
SIETAR
Participants Discuss Client-Consultant Relationship Best Practices – Recently
Global Dynamics’ President, Neal R. Goodman, Ph.D.,
conducted a workshop at the SIETAR USA Conference in
Austin, Texas regarding Best Practices in Consultant-Client Relationships.
He asked the audience to identify what a client expects of a crosscultural consulting
organization. Replies to the question “as a client,
our ideal consultant will…” included:
• have an understanding
of the problem;
• do a needs assessment;
• have an appropriate solution to offer;
• provide content that we can use independently;
• provide added value beyond that which they are contracted to provide;
• allow me to “leverage off of them” to help my colleagues better
understand the needs;
• allow me to be a part of what they are presenting;
• make me look good!
• honor time parameters and schedule commitments; |
• have an understanding
of our corporate culture;
• not stay in “marketing mode”;
• not create a dependency relationship;
• challenge people to change and yet make it “safe” to do so;
• provide help for me to sell the content internally (HR has to sell it “up”);
• have a personal impact;
• follow up afterward;
• be willing to refer us elsewhere if they are not the appropriate person;
• be aware of, and honor, our budget constraints;
• be ethical! |
Global Dynamics hopes its has met or
exceeded its clients expectations in these areas.
U.S. Census Bureau Advocates
Program to Count Expats in 2010 Census – Recently the
U.S. Census Bureau published a notice in the Federal Register
requesting an authorization from the Office of
Management and Budget to conduct the 2004 Overseas Enumeration
Test. The Census Bureau indicated that the program would provide information
regarding the feasibility of counting U.S. citizens living overseas
and their dependents as part of its 2010 Census
data collection process. The census currently does not
count Americans privately living and working overseas. The test
will include overseas Americans living in France,
Kuwait and Mexico. The Census Bureau intends to collect
the data by distributing paper copies and posting electronic questionnaires
on the Internet. For more information, view the
Census Bureau’s
initial announcement at
www.census.gov/Press-Release/www/2003/cb03cn03.html.
Global
Dynamics in the News
Global Dynamics, Inc. (GDI) announced that it
will introduce its redesigned, interactive website in the
first quarter of 2004. The next issue of Global Exchange will
provide additional information.
Convergys, the world’s
largest outsourcing call center organization, recently licensed Global
Dynamics’ Cultural Tendencies Model for distribution
to its hundreds of offices around the world.
For more information how your organization could license the Cultural
Tendencies Model, contact John Schieman at jschieman@global-dynamics.com.
Johnson & Johnson agreed
to offer Successful Electronic Communication in Global Business,
a program developed by Global Dynamics, to its 100,000-plus employees around
the world starting in 2004. For more information about the course,
contact John Schieman at jschieman@global-dynamics.com.
Neal
R. Goodman, Ph.D., President, made presentations in Austin,
Texas at the Society for Intercultural Education,
Training and Research (SIETAR) USA conference on Best
Practices in Consultant Client Relationships. For more information about
the presentation, contact Neal Goodman at ngoodman@global-dynamics.com.
John
Schieman, Director of Global Programs and Marketing,
recently made a major presentation on Developing
Global Competence: A Knowledge Management Approach at the
Virginia State Conference of the Society for Human Resource
Management (SHRM).
Carol Cunningham, Senior
Associate, delivered a keynote presentation on Efficient
Intercultural Communications for the Woman’s Leadership
Talent Group consisting of future
leaders in the pharmaceutical industry.
Gordon Cucullu,
Senior Associate, conducted a major
workshop on Working in Asia for the
global customer leadership team of a major pharmaceutical
company whose customers include major global retailers such as Walmart
and Carfour.
Global
Marketplace
World Bank Releases Global Economic
Forecast Report – Recently
the World Bank released Global Economic Prospects 2004,
an economic report prepared for the trade talks in Cancun,
Mexico. The report projects 1.5 percent growth in the industrialized world
and 4.0 percent growth in the developing world in 2003, but expects
growth to recover to 2.5 percent and 4.6 percent in 2004, respectively. In late
October 2003, the U.S. Commerce Department reported that the gross
domestic product grew at an annual rate of 8.2 percent in
the third quarter. For more information, visit the World
Bank website at www.worldbank.org and the U.S. Department of Commerce website at www.commerce.gov.
Survey Finds Increase in Offshore
Outsourcing by Medical Industry – Recently InformationWeek,
an online e-business magazine, reported that one third of health
care and medical industry companies in the InformationWeek
500 index partnered with offshore application outsourcers
in 2002. That figure is up from 13 percent in 2001. For more
information, visit www.informationweek.com.
Changes in Japan Impact
Drug Approvals – Impending Japanese
government regulations in 2005 will make it more difficult
to get approvals of new drugs. In response, Global Dynamics
has seen a significant increase in the number of pharmaceutical
organizations requiring Japanese-Western team building programs, including programs in the West focusing on working with the Japanese
and programs in
Japan focusing on working with the West. Given the 2005 deadline
and the numerous differences in culture and business
practices, this will be a major challenge.
TradeShowAnalysis.com
Issues SPAA™ Report on Telecom World 2003 – On December
1, 2003, TradeShowAnalysis.com, a division of Global Dynamics
Inc., announced the availability of its Telecom
03 Show Performance Audit and Analysis (SPAA™)
report evaluating which exhibits, marketing strategies and advertising campaigns were the most and least successful, and why. “The
findings of the report are
used by the leading Telecom organizations to develop strategies
and benchmarks for future shows,” said Neal
R. Goodman, Ph.D., president of Global Dynamics. “The industry’s
leaders utilize the SPAA™ to identify and learn
from successes and failures at Telecom World and
to identify the trends most critical to the telecom industry.” For more information, visit www.tradeshowanalysis.com or send an email
to
TSA@global-dynamics.com.