[EXPAND Industry: Internet/Online Services (China Advisory Services)] ..
[/EXPAND] [EXPAND Industry: Internet/Online Services (China Advisory Services)] A US-based provider of online vacation rental properties wanted to increase their understanding of their market potential in China; understanding of relevant industries in China (Internet, travel, real estate); and to ascertain the capabilities and positioning of competitors, if any existed. Overall intent was to begin to craft a China market strategy to be pursued post-IPO based on an initial investigation and trip to China by key executives.
Our approach:
- Provide market information on potentially related players in key industries
- Provide overall market data
- Conduct pre-travel executive briefings
- Work with client to prepare a message to deliver during key meetings in China
- Attend meetings with client in an advisory role; provide objective post-meeting feedback based on observations and participation
- Provide executive summary of meetings, recommendations, and planning of next steps
Results:
- A fast and effective “ramp up” by the client, who was able to effectively make sustainable changes ahead of schedule.
- Our ongoing engagement allowed client to receive feedback on ideas and actions in real time, which allowed for adjustments to communication and leadership style to be made quickly.
- To date, the expatriation has proven so successful that both the executive and his family are comfortable with extending the term of the China assignment.
Our approach:
- Understand the basic design and delivery method for the executive communication training workshops in the US
- Understand the desired result
- Use a framework for explaining cultural differences to show how these may impact the training results in Asia
- Use a gap analysis to identify areas to make changes
- Facilitate and guide discussion on how the gaps could be addressed in practice, content, and delivery
- Create a prioritized action plan
- Develop material on training delivery in Asia, to be included in “train the trainer” sessions
Result:
- A training program tailored more specifically to the learning style of an Asian audience—in terms of both what was included in the presentation, and the overall delivery. Client believed this would allow them to increase their market penetration in China and Southeast Asia by showing that they had region-specific training and by receiving higher ratings there.
A privately held US automotive part distributor with network of over 300 independent distributors was purchasing an increasing number of overseas products for U.S distribution. They were concerned with transparency issues and financial exposure as it related to foreign suppliers in Guangdong, Zhejiang, Taiwan, and Hong Kong. They wanted help in understanding how things were done in the Chinese business environment and accordingly, what their expectations should be; moreover, in light of any differences the company wanted to know how to minimize risk factors. The overall goal of our engagement was to provide information to the company about doing business in China and to help them understand how they could work most effectively with suppliers in the region while protecting their assets.
Our approach:
- Understand the company’s current relationships with Chinese vendors and agents
- Assist with analysis of Chinese vendor and agent capabilities
- Evaluate current and future opportunities and threats
- Recommend development of vendor selection criteria and management process
- Facilitate discussion on an integrated process between procurement and finance functions, for working with overseas suppliers
Results:
- Client gained a better understanding of corporate exposure and practices they could undertake to reduce current exposure and future risk.
- Client also came away with knowledge on how to proactively align internal processes to save time and reduce the cost and effort of working with suppliers in Greater China.
A US-based, publically traded specialty retail grocer lacked experience and visibility in working with their growing Chinese vendor system. The retailer was concerned about quality, regional business practices, transparency and possible public relations exposure. The goal of our engagement was to provide information about the general business environment in China as related to risks the company might be incurring and to submit suggestions for possible areas of improvement.
Our approach:
- Gain insight and understanding into the company’s current and desired situation with regards to their Chinese suppliers
- Gain understanding of current practices and control systems
- Provide analysis of the local risks identified in the company’s current sourcing practices as they related to the industry and current China market environment
- Provide gap analysis on current and desired states and what it would take to bridge those gaps in China
- Present recommendations for creating relevant and sustainable business systems for conducting business in China
Result:
- Significant changes to the company’s quality audit and vendor selection system, which in turn vastly reduced risk and increased transparency.
A UK-based provider of international education services with limited experience in China required snapshot research to establish market entry requirements from a regulatory perspective. The challenge for this provider was to find out how difficult it would be to obtain a license for establishing a school for foreign students in Shanghai.
Our approach:
- Understand the client’s situation.
- Telephone and face to face discussions with city, provincial and state level government representatives to establish likelihood that Chinese government would lift restrictions on foreign entrants in this market
- Summary of findings and recommendation for the client
Result:
- Fast decision making for the client, allowed by accurate market picture backed up by thorough and widespread approaches to key government officials by a neutral source.
A private equity fund with offices in China and Hong Kong was seeking information on the Texas medical device industry. They were interested in finding potential acquisition targets or partners. They requested a listing of potential companies that fit certain criteria, along with a capability assessment and recommendations on suitability.
Our approach:
- Understand the client’s underlying screening criteria and goals
- Secondary “desk research” using publically available data and databases
- Primary research by phone and interview
- Provide analysis and a customer report on the state of the industry, key private companies, and contacts
Result:
- Final report allowed the client to understand the regional market situation and opportunities for expanding their business.
A Swiss-based multinational pharmaceutical company was transferring the CFO of Mexican operations to a similar, but much more complicated role of CFO for China. Key initial responsibilities of the individual included implementing global compliance and control systems—in line with the company’s global standards, in addition to managing China accounting and finance functions. The overall goal of our engagement was to accelerate the CFO’s learning curve in regard to how to operate effectively in China; to provide confidential and objective advice and support in the face of major organizational and personal change; and to help the executive achieve performance goals on, or ahead of schedule.
Our approach:
- Seek to understand the executive’s perception of his new role and its challenges
- Define performance goals and key success factors in the context of rapid transition
- Explore nuances of the multinational’s Chinese leadership structure and what this meant to the incoming CFO
- Create awareness of cultural factors that could impact the executive’s ability to drive change
- Create an action plan for recognizing and dealing with “cross-cultural” differences
- Discuss options for approaching distinct obstacles and Serve as an objective “sounding board” for new ideas
- Provide support and create accountability through regular communication—in-person and by phone
Results:
- A fast and effective “ramp up” by the client, who was able to effectively make sustainable changes ahead of schedule.
- Our ongoing engagement allowed client to receive feedback on ideas and actions in real time, which allowed for adjustments to communication and leadership style to be made quickly.
- To date, the expatriation has proven so successful that both the executive and his family are comfortable with extending the term of the China assignment.
A US-based industrial equipment manufacturer with annual sales of USD 10 billion was moving from a centralized, US-based management structure to a more regionally-directed management structure as a part of a corporate restructuring. An American vice-president was being sent to Shanghai as the Asia regional VP. The overall goal of our engagement was to help the executive identify possible barriers to transition effectiveness prior to the move and to create a plan for overcoming them.
Our approach:
- Seek to understand the context of the executive’s move and his key early-stage objectives
- Help the client identify key stakeholders relevant to his new position
- Define priorities in building local relationships within the Chinese business context
- Create an action plan for building local relationships and establishing credibility in the new role
- Create a internal management training workshop on effective communication between Chinese and American teams—for both China and the US
- Create a feedback process to check progress
Results:
- A smoother than expected transition for the executive, as well as an increased level of comfort with the move and a clearer understanding of “what do to first” in the early weeks and months in Shanghai.
- Executive was able to produce value in his role at an earlier stage.
- The team training mapped out processes and methods for better communication and resolution of misunderstandings for both sides.
A Chinese high-tech company with growing international presence had identified high potential Chinese employees who were being groomed for global postings and needed assistance in developing skills for a multinational environment. The employees were being sent to offices in the US and needed help with early transitional issues. The overall goal of the engagement was to prepare the individuals from China with ability to cope with and to thrive in their long-term overseas assignments.
Our approach:
- Understand the employee’s situation and perceived challenges from that individual’s point of view
- Develop and deliver customized training including situational analysis for decision-making and problem-solving
- Provide a framework for understanding cultural differences that affect business practice in the US and China
- Create an action plan for addressing key challenges
- Provide confidential one-on-one coaching and support to employees in Mandarin
Results:
- A reported increased sense of understanding of the US business environment and of how people in the US view their work.
- The Chinese employees gained and practiced skills that would allow them to maximize the benefit of the overseas training they would receive and to be confident in their global assignments.
- Chinese employees came away with action plans that would allow them to identify and proactively act upon problems or difficulties in the new business environment.
A multinational drug manufacturer had a globally diverse and globally-dispersed management team responsible for different product categories within Emerging Markets. The company wanted to align activities of these various business units within China, in order to better coordinate schedules, share local resources and optimize the corporation’s overall impact there. The overall goal of our engagement was to provide a better understanding of the Chinese business environment and to help the corporation identify ways to coordinate internally to increase effectiveness in China.
Our approach:
- Seek to understand the goals, priorities, and activities of the different business units active in China
- Gain insight into the company resources and organizational structure of the corporation in China
- Facilitate strategic planning discussion on current and future business in China
- Find out challenges faced by the business units with focus on those that are environmentally or contextually driven
- Provide framework and lead discussion on impact of different business practices and culture on China operations
- Address operational issues in the context of some of these differences
- Create action plans for handling priorities and aligning activities, with emphasis on what would work best based on how things are done in China
- Get individual and collective commitments on follow up
Results:
- An expected reduction of overlapping and sometimes conflicting activities with the China market.
- Based on the strategic guidelines settled upon during the facilitation, tactical plans and activities would be coordinated so as not to “max out” the capacity of the local teams.
- Activities would be coordinated so that the corporation appeared in the local market as a single entity as opposed to disparate business units.
- A reduction in redundancy, wasted activity and poor communication was expected, resulting in overall time and money savings.
An American equipment rental company was opening a China office as a base for regional business expansion in Asia. Prior to that, their primary overseas experience was in the European market. The company requested operational and management recommendations specific to China, in order to accelerate a successful office setup and key personnel transition. The overall goal of our engagement was to provide the client with insight into what the company may face in early days of entering and setting up an office in China, how to accelerate the process, and how to prepare for the transition of the new regional vice-president from the US to China.
Our approach:
- Understand the company’s progress of setting up in China to date
- Provide an overview of general Chinese operating environment and help to set reasonable expectations and timeline
- Facilitate prioritization of tasks required for early results
- Facilitate a gap analysis of resources the company had/was lacking that were necessary to accomplish the priority tasks
- Address contextual and cultural issues in hiring, training, motivating and retaining local staff, especially in key positions;
- Conduct a one-on-one training for the exec being sent to China on managing, leading, and communicating with Chinese stakeholders
Results:
- Client reported a higher level of confidence during the early transitional period from the US to China.
- Client gained a better understanding of what to expect and of how to set early stage performance goals and to allocate resources by both the central and regional offices.
- The executive being transferred had a better understanding of how to evaluate and incent potential employees and of how to communicate effectively given the language differences he faced.
A United States Fortune 100 manufacturer of heavy industrial equipment was finalizing a joint venture project with a Chinese partner in Xuzhou and was sending a new project manager from the US to reside in Shanghai to handle the team integration. The new project manager would be responsible for identifying and mitigating risks to success of integrating the US and Chinese operating teams. He did not have experience in China and was moving there with his wife and young children. The overall goal of our engagement was to work with the project manager on a framework for identifying cross-cultural variables that could impede a successful integration, and also to provide a higher level of comfort for him and his family regarding the move to China.
Our approach:
- Understand the priorities of the project manager in his new job, and any specific concerns about the physical move
- Explain some of the core values and cultural context that influence Chinese business behavior
- Analyze how variations in outlook and cultural norm may impact his approach to dealing with his stated priorities
- Facilitate an assessment of where there may be risks to integration plans as a result of the above
- Work on ways to address and mitigate risks, including development of a communication strategy and message for a Chinese audience
- Meet with the family to discussion any concerns with the move, preview and discuss what some of the initial adaptation issues may be, and strategies to overcome
- Conduct a follow up meeting three months after the move
Results:
- A high degree of confidence by the project manager in how to approach the initial ninety days of his job and how to “hit the ground running”.
- The family was excited by the move and felt prepared leading up to the move.
- The family settled in well and the project manager was able to embrace the new environment both on a business and personal level, increasing the chance of overall success during his China posting.
A small Texas-based software company with limited experience in Asia was preparing for their first trip to China, to attend an industry association conference and to identify possible partners and opportunities. They wanted help in knowing what to expect, how to prepare for the trip, and in identifying key contacts locally. The focus of our engagement was to provide basic market and industry intelligence to the client and to help them optimize their travel plan.
Our approach:
- Understand and help define the trip success factors and goals
- Provide basic information on the China business environment as well as basic analysis of the market and industry niche of the client
- Assist in identifying key contacts and scheduling meetings
- Develop and deliver a training workshop on effective communication, relationship building and protocol
- Facilitate creation of a follow-up plan to build on the successes of the first trip in order to pursue opportunities identified during the trip
Result:
- The result was a much higher level of confidence by the client during the trip. Client was also able to make the most of the travel time by having pre-scheduled meetings that were relevant to his business. The client reported that he felt very positive about the trip from the onset, because he know what to expect and was “armed” with information that he would not have had the time to compile on his own.
A Europe-based global energy firm wanted to discover where the latest research into bio fuels was taking place in China and which of these small companies or institutes would be best positioned to commercialize production within the coming two to three years.
Our approach:
- Spend time understanding client needs and expected output
- Combined desk research and telephone investigation work to deliver mapping exercise of all key points of interest in Mainland China.
- Total of 25 R&D or small commercial contacts delivered which all fit criteria identified by client.
Result:
- Client was able to continue with planned approaches to selected targets.
The product engineering and design group of a US computer manufacturer was experiencing longer-than-desired lead times on new product development which was being handled jointly by teams based in the United States and in several Asian locations. The company requested our help aligning teams so that projects would stay “on track” and the diverse teams would be a benefit to the company rather than a hindrance. The overall goal of the engagement was to help dispersed team members work together more effectively and to reduce the product development cycle without increasing cost.
Our approach:
- Understand the roles, responsibilities, and working parameters of each team
- Develop and provide customized training for groups in each location—key components included working in virtual teams, collaborating remotely, cross-border project management, managing and motivating teams across borders
- Provide a practical focus for improving overall communication among team members working on the project
- Facilitate work on processes and procedures to manage effective collaboration.
- Follow up with one-on-one support for team leads
Results:
- A better mutual understanding of each team’s situation, working style, and any constraints faced and in turn a better management of expectations and timelines.
- Through the workshops the team members learned how to build relationships with their virtual teammates and began the process of doing so.
- Communication improved and increased, which allowed for quicker resolution of roadblocks in obtaining information and of obstacles to making decisions.
- Team leads reported a higher level of confidence when motivating virtual teams, in using “shared resources” effectively, and in communicating within teams and to upper management.
