LAZ B2 Language and LAZ B2 Language and Culture for BusinessCulture for Business

Module I The Culture of Business Module I The Culture of Business ProcessesProcesses

Prof. Peter Cullen 2009Prof. Peter Cullen 2009

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Cultural axioms: TimeCultural axioms: Time

Axioms: constructs which a group of people consider Axioms: constructs which a group of people consider true without further question or proof.true without further question or proof.

Time is a social construct designed to measure change Time is a social construct designed to measure change by relative means. (i.e., from the small to the big by relative means. (i.e., from the small to the big object/systemobject/system

It includes observation of physical change as well as It includes observation of physical change as well as perceptions of changeperceptions of change

SO – it has real-world and metaphorical applications.SO – it has real-world and metaphorical applications.

Concepts: calendar, speed and velocity, rate, maturity Concepts: calendar, speed and velocity, rate, maturity and youth, growth and decline. Others?and youth, growth and decline. Others?

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Types of temporal constructsTypes of temporal constructs

astronomical/geophysical = planetary orbit/rotation/seasonsastronomical/geophysical = planetary orbit/rotation/seasons

(Galileo’s constant = scientific agreement of the axiom)(Galileo’s constant = scientific agreement of the axiom)

life-cycle = physical growth and decay of people, animals, life-cycle = physical growth and decay of people, animals, thingsthings

(many business metaphors – companies, products, markets)(many business metaphors – companies, products, markets)

Historical and explanitory constructs: foundation myths, Historical and explanitory constructs: foundation myths, periodisation, progress, development, cut-off dates, periodisation, progress, development, cut-off dates, deadlines, sequences – others?deadlines, sequences – others?

Chronos: BC and AD? BCE and CE? Chronos: BC and AD? BCE and CE?

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Newtonian timeNewtonian time

Newton – classical mechanics =Newton – classical mechanics =

Events seen by two different observers in motion Events seen by two different observers in motion relative to each other produce a mathematical relative to each other produce a mathematical concept of time that works pretty well for describing concept of time that works pretty well for describing the everyday phenomena of experience.the everyday phenomena of experience.

Critical point: Frame of reference.Critical point: Frame of reference.

Kappa effect: psychological perception of time depends Kappa effect: psychological perception of time depends on values associated with the process experienced.on values associated with the process experienced.

Cognitive memory cycles: even the brain has it’s own Cognitive memory cycles: even the brain has it’s own “wave clock cycle”.“wave clock cycle”.

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Culture and mechanical timeCulture and mechanical time

Problem: whose frame of reference?Problem: whose frame of reference?1 hour = 1/52,560.0 of a six-year old’s life1 hour = 1/52,560.0 of a six-year old’s life1 hour = 1/350,400 of a 40-year old’s life1 hour = 1/350,400 of a 40-year old’s life

Cultural Kappa effects and cultural bubbles.Cultural Kappa effects and cultural bubbles.

The utilitiy of time is bound by the culture that uses it.The utilitiy of time is bound by the culture that uses it.

Different cultures have different needs for time:Different cultures have different needs for time:

Agricultural timeAgricultural timeReligious timeReligious timeIndustrial production timeIndustrial production timeDelivery timeDelivery timePayment time – and ascribe different degrees of Payment time – and ascribe different degrees of

importanceimportance

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History and perception of timeHistory and perception of time

• Questions of PeriodisationQuestions of Periodisation

• What are our major historical periods?What are our major historical periods?

• How do we know when one begins and How do we know when one begins and another ends?another ends?

• Why do we use names to identify historical Why do we use names to identify historical periods?periods?

• Do those names apply to all aspects of a Do those names apply to all aspects of a society, or only some?society, or only some?

Periodisation and cultural Periodisation and cultural learninglearning

Periodisation is a cultural production – usually Periodisation is a cultural production – usually post factopost facto

Periodisation in North America:Periodisation in North America:

MesopotamiaMesopotamia RenaissanceRenaissance

EgyptEgypt Early ModernEarly Modern

GreeceGreece Reformation/C Reformation/C ReformationReformation

RomeRome Industrial RevolutionIndustrial Revolution

““Dark Ages”Dark Ages” “Modern”“Modern”

Middle AgesMiddle Ages Post modernPost modern

GenerationalGenerational

Questions of PeriodisationQuestions of Periodisation

Periodisation is a function of cultural understanding of Periodisation is a function of cultural understanding of significance in history.significance in history.

What does “antiquity” mean?What does “antiquity” mean?What does the “renaissance” mean?What does the “renaissance” mean?What does “modern” mean?What does “modern” mean?

Are these useful terms? Why?Are these useful terms? Why?

Periodisation is tied to concepts of “civilisation”Periodisation is tied to concepts of “civilisation”

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1900 10 20 30 40 50 60 70 80 90 200008

industrial growthindustrial growth

demographic growthdemographic growth

G1G1 G4G4G3G3G2G2

generational time-linegenerational time-line

Rep. presidencyRep. presidency

Dem. presidencyDem. presidency

Multi-variate changeMulti-variate change

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Coping with change: value Coping with change: value creationcreation

Humans readily associate value to time frames.Humans readily associate value to time frames.

These values are, in themselves, constructed in their These values are, in themselves, constructed in their own time frames, but applied in different ones.own time frames, but applied in different ones.

i.e.i.e.

Religion – mixes the concept of eternal with everyday.PReligion – mixes the concept of eternal with everyday.P

Family – extrapolates personal connection before birth Family – extrapolates personal connection before birth and after death = the family treeand after death = the family tree

Politics – attempts to create systems that last beyond Politics – attempts to create systems that last beyond its participantsits participants

Money – attempts to provide recurrance to a common Money – attempts to provide recurrance to a common value systemvalue system

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Value creation and uncertaintyValue creation and uncertainty

Values are expressions of the Values are expressions of the profundity profundity of beliefs of beliefs (mentally constructed associations of experience)(mentally constructed associations of experience)

Beliefs and their expressions are variable, but humans Beliefs and their expressions are variable, but humans try to ascribe a semi-permanent function to them.try to ascribe a semi-permanent function to them.

This aids This aids associative predictionassociative prediction (risk management), (risk management), behavioural participationbehavioural participation and and explanationexplanation of human of human events.events.

These associations are learned – but not always taught.These associations are learned – but not always taught.

Leading peopleLeading people

In In humanhuman and and animalanimal societies and communities, societies and communities, certain individuals or limited groups act to organise certain individuals or limited groups act to organise and regulate the behaviour of other group members.and regulate the behaviour of other group members.

Conflict resolution was the prime motivator of the Conflict resolution was the prime motivator of the early functionality of early functionality of leadershipleadership in human in human communities.communities.

It created a need for It created a need for authorityauthority..

This differentiation significantly changed the way This differentiation significantly changed the way primates view their primates view their cultural fieldcultural field, creating a culture , creating a culture of of norms, rules and lawsnorms, rules and laws..

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Learning and communicationLearning and communication

Authorities function to establish consensus and Authorities function to establish consensus and direction in group behaviour with respect to norms, direction in group behaviour with respect to norms, rules and laws.rules and laws.

This requires cultural negotiation between leaders and This requires cultural negotiation between leaders and the group.the group.

Cultural negotiation may occur through linguistic Cultural negotiation may occur through linguistic communicationcommunication

OROR

Non-linguistic communication.Non-linguistic communication.

Language and cultureLanguage and culture

The language process uses a The language process uses a codecode to to communicatecommunicate a a messagemessage from a from a producerproducer to a to a receiverreceiver – but: – but:

Each variable depends on its relationship to the other Each variable depends on its relationship to the other variables for variables for understandingunderstanding to happen. to happen.

Culture Culture operates with a similar series of feedback loops.operates with a similar series of feedback loops.(i.e. Bourdieu)(i.e. Bourdieu)

ProducerProducercodecode

messagemessage

communicationcommunication

receiverreceiver

understandingunderstanding MEMORYMEMORY

Feedback loop at each Feedback loop at each stagestage

Authority and cultureAuthority and culture

Authority accesses Authority accesses cultural feedback loopscultural feedback loops at at different places for different purposes.different places for different purposes.

Authority may be Authority may be concentratedconcentrated or or distributeddistributed..

Concentrated to distributed authority.Concentrated to distributed authority.

DictatorshipDictatorshipAbsolute monarchyAbsolute monarchy

OligarchyOligarchyParliamentary monarchyParliamentary monarchyRepublican democracyRepublican democracy

Cooperatives or communesCooperatives or communes

Authority and cultureAuthority and culture

Concentrated Concentrated authorityauthority creates creates and and imposesimposes message, enforcing rigid interpretation of message, enforcing rigid interpretation of codecode..

Why?Why?

DistributedDistributed authority creates message through authority creates message through active consensus, active consensus, seekingseeking legitimacylegitimacy of both of both message and code through message and code through social accordsocial accord..

Why?Why?

Authority = responsibiltyAuthority = responsibilty

What is the role of culture in the What is the role of culture in the economy?economy?

ConceptsConcepts::

ProductionProduction costcost exchangeexchange

DistributionDistribution priceprice trade/exchangetrade/exchange

ConsumptionConsumption returnreturn valuevalue

All of these concepts involve learning feedback loops.All of these concepts involve learning feedback loops.

Some of them directly involve a relationship to the Some of them directly involve a relationship to the physical worldphysical world..

Some of them are Some of them are abstractionsabstractions created for the created for the purpose of understanding the physical world.purpose of understanding the physical world.

What is the role of culture in the What is the role of culture in the economy?economy?

The concepts and actions that we The concepts and actions that we define as “define as “economiceconomic” are ” are bound by bound by cultureculture..

What are some concepts of What are some concepts of “economy” and “business”?“economy” and “business”?

What is the role of culture in the What is the role of culture in the economy?economy?

ValueValue::

The establishment of value is abstract, fluxuating, and The establishment of value is abstract, fluxuating, and dependent on the cultural feedback loop.dependent on the cultural feedback loop.It combines It combines primary necessityprimary necessity with with utilityutility (abstract) (abstract)

Today, we use Today, we use moneymoney to establish value. to establish value.

Luca Fantacci – money is:Luca Fantacci – money is: a means of exchangea means of exchangea measure of valuea measure of valuea reserve of valuea reserve of value

All dependent on the cultural feedback loop.All dependent on the cultural feedback loop.

What is the role of culture in the What is the role of culture in the economy?economy?

““Time is moneyTime is money” – an American concept” – an American concept

This is not true in real terms, but the metaphor guides This is not true in real terms, but the metaphor guides American business practices.American business practices.

Can American concepts of time, expressed and Can American concepts of time, expressed and learned in their business practices, be learned in their business practices, be appliedapplied in in other parts of the world – such as Italy?other parts of the world – such as Italy?

Why? Why not? How? i.e -Why? Why not? How? i.e - business quarters, business quarters, cost cost accounting, mark to accounting, mark to market, market, business planning, business planning, etc., etc., etc.etc., etc., etc.

Why is this an important question for Italians?Why is this an important question for Italians?

What is the role of culture in the What is the role of culture in the economy?economy?

Answers to these questions are fundamental to Answers to these questions are fundamental to success in global business and teamwork.success in global business and teamwork.

Finding Finding functionalfunctional answers requires cultural answers requires cultural contextualisations of relationships.contextualisations of relationships.

contractual, informal, communicationscontractual, informal, communicationsconsumption, service, production...consumption, service, production...

History can help find explanations of culturally History can help find explanations of culturally specific behaviour in different regions.specific behaviour in different regions.

i.e. i.e. America America is notis not Italy Italy – why? – why?

What is the role of diversity in What is the role of diversity in culturally diverse teams?culturally diverse teams?

Teamwork in the global arena requires Teamwork in the global arena requires RESPECTRESPECT for for diversity.diversity.

DiversityDiversity of approach to authority, time, value, labour of approach to authority, time, value, labour

RespectRespect = = listenlistenidentifyidentify message messagecontextualisecontextualise meaning meaning TOWARDTOWARD team team

functionalityfunctionalityestablishestablish message in team context (NOT message in team context (NOT

easy!)easy!)

Diversity produces strong teams since cultural and Diversity produces strong teams since cultural and linguistic feedback loops with in the group are linguistic feedback loops with in the group are consciousely evaluatedconsciousely evaluated more often. This takes a lot of more often. This takes a lot of work! BE patient!work! BE patient!

Fewer cultural assumptions = stronger emphasis on Fewer cultural assumptions = stronger emphasis on current group current group identityidentity. Functionality = identity-building . Functionality = identity-building opportunity.opportunity.

Food for thoughtFood for thought

Businesses are culturally formed Businesses are culturally formed identity systemsidentity systems..

NONO single business system is the single business system is the right oneright one for everyone. for everyone.

Successful GLOBAL business respects Successful GLOBAL business respects identities in transitidentities in transit between local, regional and global arenas.between local, regional and global arenas.

Global business is in a Global business is in a push/pull relationshippush/pull relationship with global with global teamwork opportunities.teamwork opportunities.

Business Business benefits frombenefits from learninglearning about multiple existing about multiple existing socio-cultural and economic systems in order to build socio-cultural and economic systems in order to build effective NEW interactional business contexts = better effective NEW interactional business contexts = better teamwork teamwork better global business! better global business!

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Culture and business processesCulture and business processes

Typical business Typical business processesprocesses::

Production: supply, assembly/transformation, sales, Production: supply, assembly/transformation, sales, distributiondistribution

Management: purchasing, HR, accounting, finance, Management: purchasing, HR, accounting, finance, marketingmarketing

Expectations:Expectations:employmentemploymentincomeincomeobjects/productsobjects/productsservicesservices

How, Where, When, do How, Where, When, do wewe want these? want these?

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Planning processes – cultural Planning processes – cultural expectationsexpectations

SWOTSWOT – Strengths, Weaknesses, – Strengths, Weaknesses, Opportunities, ThreatsOpportunities, Threats

Mission, visionMission, vision

Human and capital resourcesHuman and capital resources

ImplementationImplementation

ControlControl

Who are you, where are you Who are you, where are you goinggoing? Where do you want ? Where do you want to be?to be?

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Culture, mission and visionCulture, mission and vision

Mission = theMission = the identity identity of your company of your company

Vision = your ideas about your company’s Vision = your ideas about your company’s futurefuture

American model – constant American model – constant growthgrowth through through competitioncompetition

tradition of huge resource supplytradition of huge resource supplyculture of individual gain/morality/responsibilityculture of individual gain/morality/responsibilityculture of dominating the environmentculture of dominating the environment

Much North American business logic reflects the Much North American business logic reflects the psychology of post-WWII recovery. Generational psychology of post-WWII recovery. Generational learning.learning.

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Business process re-engineeringBusiness process re-engineering

"Business Process Reengineering … seeks radical rather "Business Process Reengineering … seeks radical rather than merely continuous improvement. It escalates the than merely continuous improvement. It escalates the efforts of efforts of JITJIT and and TQMTQM to make process orientation a to make process orientation a strategic tool and a core competence of the organization. strategic tool and a core competence of the organization. BPRBPR concentrates on concentrates on core businesscore business processes, and uses processes, and uses the specific techniques within the JIT and TQM the specific techniques within the JIT and TQM ””toolboxestoolboxes” as enablers, while broadening the process ” as enablers, while broadening the process vision.” (vision.” (H. Johansen (1993), Business Process Reengineering: H. Johansen (1993), Business Process Reengineering:

BreakPoint Strategies for Market BreakPoint Strategies for Market DominanceDominance))

Just In TimeJust In TimeTotal Quality ManagementTotal Quality ManagementBusiness Process ReeingineeringBusiness Process Reeingineering

Culture of Culture of ingenuity ingenuity and and innovationinnovation from groups of from groups of dedicated individualsdedicated individuals

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Planning – strategy and functionPlanning – strategy and function

PlanningPlanning is the prescription of business processes to is the prescription of business processes to perform a set number of perform a set number of taskstasks according to a pre- according to a pre-established established scheduleschedule..

Planning is one function of process coordination and Planning is one function of process coordination and deliverydelivery

1)1) Routine planningRoutine planning: annual budgets, production : annual budgets, production levels, supply chains, etc.levels, supply chains, etc.

2)2) Project planningProject planning: limited in time and performance : limited in time and performance expectations. Oriented toward the clientexpectations. Oriented toward the client

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Planning tools: Gantt graphsPlanning tools: Gantt graphs

processes in orderprocesses in order scheduleschedule

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Project Life-cycleProject Life-cycle

Defining:Defining: Planning:Planning: Execution:Execution: Delivery:Delivery:1.1. GoalsGoals schedulesschedules status reportsstatus reports train clienttrain client2.2. SpecsSpecs budgetsbudgets changeschanges transfer transfer

docsdocs3.3. TasksTasks resourcesresources qualityquality release resourcesrelease resources4.4. RespsbltsRespsblts risksrisks forecastsforecasts release staffrelease staff5.5. ------ staffingstaffing ------ lessons learnedlessons learned

D+pD+p ExEx

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Strategies: the value chainStrategies: the value chain

The The value chainvalue chain (Michael Porter 1985): (Michael Porter 1985):

A A series of activitiesseries of activities that transform objects or services that transform objects or services from component parts to finished product:from component parts to finished product:

at each activity the product gains some value – the at each activity the product gains some value – the total = total = more than the summore than the sum of added values of the of added values of the individual activities.individual activities.

i.e. the diamond cutter: cutting the diamond i.e. the diamond cutter: cutting the diamond (inexpensive) adds hugely more value to the stone (inexpensive) adds hugely more value to the stone than the process itself.than the process itself.

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Value chains and strategyValue chains and strategy

Value chain concept allows valuation of identified Value chain concept allows valuation of identified activities:activities:

Primary activities:Primary activities:

Inbound logisticsInbound logistics

OperationsOperations

Outbound logisticsOutbound logistics

marketing, sales and after sales servicemarketing, sales and after sales service

Support activities:Support activities:

administrative infrastructureadministrative infrastructure

managementmanagement

HRHR

R&DR&D

ProcurementProcurement

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Value chains and strategyValue chains and strategy

The Supply-Chain Operations Reference (SCOR)The Supply-Chain Operations Reference (SCOR)

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Record-keeping and cultureRecord-keeping and culture

TransparencyTransparency and competition: and competition:the prisoner’s dilemma:the prisoner’s dilemma:Two suspected criminals are being interrogated – no Two suspected criminals are being interrogated – no

communication between them about their communication between them about their situations:situations:

a)a) A rats out B – A gets 0 year and B gets 10A rats out B – A gets 0 year and B gets 10b)b) B rats out A – B gets 0 years and B gets 10B rats out A – B gets 0 years and B gets 10c)c) Both rat out each other – both get 8Both rat out each other – both get 8d)d) Neither talks – both get 1Neither talks – both get 1

risk calculation Arisk calculation AA talks B doesn’t = A 0 yearsA talks B doesn’t = A 0 yearsA talks B does = A 8 yearsA talks B does = A 8 yearsA doesn’t talk B does = A 10 yearsA doesn’t talk B does = A 10 yearsA doesn’t talk b doesn’t = 1 yearA doesn’t talk b doesn’t = 1 year

= individualist logic = individualist logic pushes prisoner to pushes prisoner to talktalk