LAZ B2 Language and Culture for Business Module I The Culture of Business Processes Prof. Peter Cullen 2009

Cultural axioms: Time Axioms: constructs which a group of people consider true without further question or proof. Time is a social construct designed to measure change by relative means. (i.e., from the small to the big object/system It includes observation of physical change as well as perceptions of change SO – it has real-world and metaphorical applications. Concepts: calendar, speed and velocity, rate, maturity and youth, growth and decline. Others?

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

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

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

SO – it has real-world and metaphorical applications.

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

Types of temporal constructs astronomical/geophysical = planetary orbit/rotation/seasons (Galileo’s constant = scientific agreement of the axiom) life-cycle = physical growth and decay of people, animals, things (many business metaphors – companies, products, markets) Historical and explanitory constructs: foundation myths, periodisation, progress, development, cut-off dates, deadlines, sequences – others? Chronos: BC and AD? BCE and CE?

astronomical/geophysical = planetary orbit/rotation/seasons

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

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

(many business metaphors – companies, products, markets)

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

Chronos: BC and AD? BCE and CE?

Newtonian time Newton – classical mechanics = Events seen by two different observers in motion relative to each other produce a mathematical concept of time that works pretty well for describing the everyday phenomena of experience. Critical point: Frame of reference. Kappa effect: psychological perception of time depends on values associated with the process experienced. Cognitive memory cycles: even the brain has it’s own “wave clock cycle”.

Newton – classical mechanics =

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

Critical point: Frame of reference.

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

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

Culture and mechanical time Problem: whose frame of reference? 1 hour = 1/52,560.0 of a six-year old’s life 1 hour = 1/350,400 of a 40-year old’s life Cultural Kappa effects and cultural bubbles. The utilitiy of time is bound by the culture that uses it. Different cultures have different needs for time: Agricultural time Religious time Industrial production time Delivery time Payment time – and ascribe different degrees of importance

Problem: whose frame of reference?

1 hour = 1/52,560.0 of a six-year old’s life

1 hour = 1/350,400 of a 40-year old’s life

Cultural Kappa effects and cultural bubbles.

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

Different cultures have different needs for time:

Agricultural time

Religious time

Industrial production time

Delivery time

Payment time – and ascribe different degrees of importance

History and perception of time Questions of Periodisation What are our major historical periods? How do we know when one begins and another ends? Why do we use names to identify historical periods? Do those names apply to all aspects of a society, or only some?

Questions of Periodisation

What are our major historical periods?

How do we know when one begins and another ends?

Why do we use names to identify historical periods?

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

Periodisation and cultural learning Periodisation is a cultural production – usually post facto Periodisation in North America: Mesopotamia Renaissance Egypt Early Modern Greece Reformation/C Reformation Rome Industrial Revolution “ Dark Ages” “Modern” Middle Ages Post modern Generational

Questions of Periodisation Periodisation is a function of cultural understanding of significance in history. What does “antiquity” mean? What does the “renaissance” mean? What does “modern” mean? Are these useful terms? Why? Periodisation is tied to concepts of “civilisation”

1900 10 20 30 40 50 60 70 80 90 2000 08 industrial growth demographic growth G1 G4 G3 G2 generational time-line Rep. presidency Dem. presidency Multi-variate change

Coping with change: value creation Humans readily associate value to time frames. These values are, in themselves, constructed in their own time frames, but applied in different ones. i.e. Religion – mixes the concept of eternal with everyday.P Family – extrapolates personal connection before birth and after death = the family tree Politics – attempts to create systems that last beyond its participants Money – attempts to provide recurrance to a common value system

Humans readily associate value to time frames.

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

i.e.

Religion – mixes the concept of eternal with everyday.P

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

Politics – attempts to create systems that last beyond its participants

Money – attempts to provide recurrance to a common value system

Value creation and uncertainty Values are expressions of the profundity of beliefs (mentally constructed associations of experience) Beliefs and their expressions are variable, but humans try to ascribe a semi-permanent function to them. This aids associative prediction (risk management), behavioural participation and explanation of human events. These associations are learned – but not always taught.

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

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

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

These associations are learned – but not always taught.

Leading people In human and animal societies and communities, certain individuals or limited groups act to organise and regulate the behaviour of other group members. Conflict resolution was the prime motivator of the early functionality of leadership in human communities. It created a need for authority . This differentiation significantly changed the way primates view their cultural field , creating a culture of norms, rules and laws .

Learning and communication Authorities function to establish consensus and direction in group behaviour with respect to norms, rules and laws. This requires cultural negotiation between leaders and the group. Cultural negotiation may occur through linguistic communication OR Non-linguistic communication.

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

This requires cultural negotiation between leaders and the group.

Cultural negotiation may occur through linguistic communication

OR

Non-linguistic communication.

Language and culture The language process uses a code to communicate a message from a producer to a receiver – but: Each variable depends on its relationship to the other variables for understanding to happen. Culture operates with a similar series of feedback loops. (i.e. Bourdieu) Producer code message communication receiver understanding MEMORY Feedback loop at each stage

Authority and culture Authority accesses cultural feedback loops at different places for different purposes. Authority may be concentrated or distributed . Concentrated to distributed authority. Dictatorship Absolute monarchy Oligarchy Parliamentary monarchy Republican democracy Cooperatives or communes

Authority and culture Concentrated authority creates and imposes message, enforcing rigid interpretation of code . Why? Distributed authority creates message through active consensus, seeking legitimacy of both message and code through social accord . Why? Authority = responsibilty

What is the role of culture in the economy? Concepts : Production cost exchange Distribution price trade/exchange Consumption return value All of these concepts involve learning feedback loops. Some of them directly involve a relationship to the physical world . Some of them are abstractions created for the purpose of understanding the physical world.

What is the role of culture in the economy? The concepts and actions that we define as “ economic ” are bound by culture . What are some concepts of “economy” and “business”?

What is the role of culture in the economy? Value : The establishment of value is abstract, fluxuating, and dependent on the cultural feedback loop. It combines primary necessity with utility (abstract) Today, we use money to establish value. Luca Fantacci – money is: a means of exchange a measure of value a reserve of value All dependent on the cultural feedback loop.

What is the role of culture in the economy? “ Time is money ” – an American concept This is not true in real terms, but the metaphor guides American business practices. Can American concepts of time, expressed and learned in their business practices, be applied in other parts of the world – such as Italy? Why? Why not? How? i.e - business quarters, cost accounting, mark to market, business planning, etc., etc., etc. Why is this an important question for Italians?

What is the role of culture in the economy? Answers to these questions are fundamental to success in global business and teamwork. Finding functional answers requires cultural contextualisations of relationships. contractual, informal, communications consumption, service, production... History can help find explanations of culturally specific behaviour in different regions. i.e. America is not Italy – why?

What is the role of diversity in culturally diverse teams? Teamwork in the global arena requires RESPECT for diversity. Diversity of approach to authority, time, value, labour Respect = listen identify message contextualise meaning TOWARD team functionality establish message in team context (NOT easy!) Diversity produces strong teams since cultural and linguistic feedback loops with in the group are consciousely evaluated more often. This takes a lot of work! BE patient! Fewer cultural assumptions = stronger emphasis on current group identity . Functionality = identity-building opportunity.

Food for thought Businesses are culturally formed identity systems . NO single business system is the right one for everyone. Successful GLOBAL business respects identities in transit between local, regional and global arenas. Global business is in a push/pull relationship with global teamwork opportunities. Business benefits from learning about multiple existing socio-cultural and economic systems in order to build effective NEW interactional business contexts = better teamwork  better global business!

Culture and business processes Typical business processes : Production: supply, assembly/transformation, sales, distribution Management: purchasing, HR, accounting, finance, marketing Expectations: employment income objects/products services How, Where, When, do we want these?

Typical business processes :

Production: supply, assembly/transformation, sales, distribution

Management: purchasing, HR, accounting, finance, marketing

Expectations:

employment

income

objects/products

services

How, Where, When, do we want these?

Planning processes – cultural expectations SWOT – Strengths, Weaknesses, Opportunities, Threats Mission, vision Human and capital resources Implementation Control Who are you, where are you going ? Where do you want to be?

SWOT – Strengths, Weaknesses, Opportunities, Threats

Mission, vision

Human and capital resources

Implementation

Control

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

Culture, mission and vision Mission = the identity of your company Vision = your ideas about your company’s future American model – constant growth through competition tradition of huge resource supply culture of individual gain/morality/responsibility culture of dominating the environment Much North American business logic reflects the psychology of post-WWII recovery. Generational learning.

Mission = the identity of your company

Vision = your ideas about your company’s future

American model – constant growth through competition

tradition of huge resource supply

culture of individual gain/morality/responsibility

culture of dominating the environment

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

Business process re-engineering "Business Process Reengineering … seeks radical rather than merely continuous improvement. It escalates the efforts of JIT and TQM to make process orientation a strategic tool and a core competence of the organization. BPR concentrates on core business processes, and uses the specific techniques within the JIT and TQM ” toolboxes ” as enablers, while broadening the process vision.” ( H. Johansen (1993), Business Process Reengineering: BreakPoint Strategies for Market Dominance ) Just In Time Total Quality Management Business Process Reeingineering Culture of ingenuity and innovation from groups of dedicated individuals

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

Just In Time

Total Quality Management

Business Process Reeingineering

Culture of ingenuity and innovation from groups of dedicated individuals

Planning – strategy and function Planning is the prescription of business processes to perform a set number of tasks according to a pre-established schedule . Planning is one function of process coordination and delivery Routine planning : annual budgets, production levels, supply chains, etc. Project planning : limited in time and performance expectations. Oriented toward the client

Planning is the prescription of business processes to perform a set number of tasks according to a pre-established schedule .

Planning is one function of process coordination and delivery

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

Project planning : limited in time and performance expectations. Oriented toward the client

Planning tools: Gantt graphs processes in order schedule

Project Life-cycle Defining: Planning: Execution: Delivery: Goals schedules status reports train client Specs budgets changes transfer docs Tasks resources quality release resources Respsblts risks forecasts release staff --- staffing --- lessons learned D+p Ex

Defining: Planning: Execution: Delivery:

Goals schedules status reports train client

Specs budgets changes transfer docs

Tasks resources quality release resources

Respsblts risks forecasts release staff

--- staffing --- lessons learned

Strategies: the value chain The value chain (Michael Porter 1985): A series of activities that transform objects or services from component parts to finished product: at each activity the product gains some value – the total = more than the sum of added values of the individual activities. i.e. the diamond cutter: cutting the diamond (inexpensive) adds hugely more value to the stone than the process itself.

The value chain (Michael Porter 1985):

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

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

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

Value chains and strategy Value chain concept allows valuation of identified activities: Primary activities: Inbound logistics Operations Outbound logistics marketing, sales and after sales service Support activities: administrative infrastructure management HR R&D Procurement

Value chain concept allows valuation of identified activities:

Primary activities:

Inbound logistics

Operations

Outbound logistics

marketing, sales and after sales service

Support activities:

administrative infrastructure

management

HR

R&D

Procurement

Value chains and strategy The Supply-Chain Operations Reference (SCOR)

The Supply-Chain Operations Reference (SCOR)

Record-keeping and culture Transparency and competition: the prisoner’s dilemma: Two suspected criminals are being interrogated – no communication between them about their situations: A rats out B – A gets 0 year and B gets 10 B rats out A – B gets 0 years and B gets 10 Both rat out each other – both get 8 Neither talks – both get 1 risk calculation A A talks B doesn’t = A 0 years A talks B does = A 8 years A doesn’t talk B does = A 10 years A doesn’t talk b doesn’t = 1 year = individualist logic pushes prisoner to talk

Transparency and competition:

the prisoner’s dilemma:

Two suspected criminals are being interrogated – no communication between them about their situations:

A rats out B – A gets 0 year and B gets 10

B rats out A – B gets 0 years and B gets 10

Both rat out each other – both get 8

Neither talks – both get 1

risk calculation A

A talks B doesn’t = A 0 years

A talks B does = A 8 years

A doesn’t talk B does = A 10 years

A doesn’t talk b doesn’t = 1 year