H27年度後期山田道場WHAT'S GOING ON『Strategic Management and Cultural Differences』（20/Nov/2015）

Guest Speaker and facilitator: Parissa Haghirian, Professor, Liberal Arts, Sophia University

The current area of interest for our cross-cultural learning and training in previous lectures was focused on the theme servant leadership across cultures. In this class we would trying to understand strategic management and intercultural business. It was delightful to have Prof. Parissa Haghirian at the Yamada Dojo for a lecture on the topic "Strategic Management and Cultural Differences" Prof. Haghirian is currently at the Faculty of Liberal Arts teaching various management courses some of which are Principles of Management, HR Management and Management in Japan.
Management is a cultural topic and in our age of globalization, understanding cultural differences at workplaces and at places of higher education. The field of Management involves several leadership tasks, ranging from decision making to negotiation and many have you. The simple idea of a manager is someone who is responsible for controlling and directing an institution, organization or a business. However, when it comes to a place of cultural diversity or among a community with the very little understanding of the foreign business context, understanding dissimilarities becomes a necessity.
Does business strategy happen indifferently in other countries? Prof. Haghirian asked. Of course, it does differ in other countries and it renders significantly in management. Example, in Japan first time foreign business folks may have little or no understanding about business context, language and local environment.
To dive further our understanding of strategic management, we deviate our attention for a while to diffuse two decision-making aspects in management, strategies and operations.
Citing the bird and the frog analogy Prof. Haghirian explained the relationship between strategy and operation business management logic.
By casting our minds to these two characteristically unique creatures in their natural habitats, "not the fancy pet habitats" we could learn something interesting from these two. In summary, the frog in its natural habitat can only see its close surroundings (green grasses and insects) and does not perceive anything else apart from its surroundings. The bird, on the other hand, has a wider view of its surrounding and can fly in different surroundings. The former related to the operational process and the latter strategic processes in business.



Various types of business levels come with different perspectives, indeed, the biggest mistake is in management is mixing the two distinct roles or misinterpreting the two. By contrast, strategic decision-making is considered a special talent or skill, that prominent CEOs like Steve, Gates Musk and others. Such individuals are long-term orientated and critical decision making, whereas operational decision-making requires supervision, short-term oriented and at some point becomes a routine decision-making process.
We discussed reasons for both approaches because these decisions impact on each other. It is important to note that strategic decisions have an impact on operational decisions. Those guys at the top management make a decision and it could directly or indirectly influence their subordinates. Complex, unstructured environment requires very strategic decision, because in that position what stakeholders search for is effectiveness, but when it comes to operational results the main agenda is to aim for efficiency.
Now back to the cultural aspect of decision-making. A typical example used in the class was between Japanese and American companies and their strategic decision-making process.

For explanation purposes, we shall consider profit-making organizations, and as you know, the primary aim of institutions produces results. The important thing we have to understand is to have a good strategy you need a goal, regardless of your culture or organizational structure. In Japan, the goals seem to be cast in a wide area. As a result, decision-making can take time and gradual process. It also involves a lot of people to an extent where those who may not be directly impacted by the decision can sometimes informally involved decision process. By doing this, it brings some form of universal consent among everyone on the table. Organizations in Western countries, on the other hand, tend to have clear-cut goals that are specific depending on the team and stakeholder's goals. It is usual to find one individual make concrete final decisions and is always accountable for any ups or downs. According to a famous management writer, westerners are always about being different from our competitors; however in Japan let us benchmark our organizations with other competitors.
In the last few years, organizations, domestically and abroad are going through several changes, of course, every strategy is unique, multidimensional, heterogeneous which are strongly influenced by several important factors, such as Globalization, Innovation and Customer voices. However, making choices can be difficult and will take time and a gradual process.
We concluded the discussion a quote from a famous Japanese Management Consultant " I believe, however, that it will make for clearer thinking if we reserved the term "strategy" for actions aimed directly at altering the strength of the enterprise about that of its competitors."
Kennichi Ohmae

(Reported by DZISSAH Daniel Agbesi, Information Processing, 2013AGL student)