LEADING ACROSS CULTURES AT MICHELIN
ABSTRACT: Olivier Chalon had over 18 years of successful career with several top level
management positions in different business units in six different countries. Though, he
initially began his career in France, he had worked in UK for six years and had fluent
English. With such an impressive background he that could take up the challenge and
alter the strategy of the North American Michelin Business unit. However, within six
months of his joining, he heard that his colleagues and subordinates complained
bitterly about his approach. Chalon was extremely concerned about this and knew that
he needed the support of everyone to deliver the turnaround of the North American
Michelin Business unit.
MICHELIN TYRES: Michelin Tyres was a leading tyre manufacturing company with 19.2 %
market share, it has 120000 employees overall with 20000 in North America. In 2004, the
North American business unit which Chalon was assigned was facing several challenges
and was experiencing sliding sales and poor financial results several quarters in a row.
Boston Consulting Group who was hired had strongly recommended that Michelin should
change course and alters its strategy in the tyre service business. This was putting the
company in direct competition with its own long-time customers. Michelin was supposed
to significantly realign their sales and marketing approach. Michelin had brought it Olivier
Chalon to lead a division with several plants and 4000 employees.
OLIVIER CHATON
Had two decades of hard won experience motivating people and achieving
results.
Tough but fair manager
Results driven, disciplined and demanded complete accountability from his
team.
Demanding and setting high standards of his team.
Issues Olivier Chalon’s view
Blunt during He had always been careful to seek consensus and not
meetings make decisions on his own, however he had to make the
decisions
Arrogant Certainly not!
He never considered himself close and was always open
Cold to staff’s issues.
Distant He had an open door policy and considered himself
accessible.
Not made any He was transparent and never hoarded information.
effort to know
people at work He had made efforts to walk around and know his
colleagues.
Lacking ability to Believed that his team was hardworking and smart, so
motivate teams he pushed them to achieve their full potential.
Even when pleased with results, he would avoid
stroking people on the back to avoid complacency.
Constantly demanded more from his Team because he
knew they could do it.
He was also upfront with disproval when required,
because he was on a challenging mission and often
times less than 100 % was not acceptable.
UNDERSTANDING CULTURAL DIFFERENCES
Cultural differences in the American and French value systems might be at the root of the
difficulties Chalon is facing:
FRENCH CULTURE AMERICAN CULTURE
Professionalism is the key to Socializing is the key to acceptance
acceptance of outsiders of outsiders
Business people tend to be very Business people tend to know each
formal and conservative. other well.
They like to keep their personal They are ok with asking personal
lives separate from the business level questions and believe in
relationships. personal level connections..
Therefore, the office culture and Therefore, there is a slight
relationships among employees or presence of socializing at office and
between managers and their it is okay to get to know an
subordinates is very formal in individual at a personal level
nature
Generally, organizations are highly Generally any company's structure
centralized and the bosses tend to is flexible and it is organized as per
take individual decisions. different styles depending on the
industry, company history and
leaders.
The business meetings are also
The business meetings are also quite informal and relaxed in
conducted very formally with clear nature while also maintaining
and to the point discussions focus on relevant topics of
discussion.
Also, the American and French value systems differ largely in terms of Power
Distance and Uncertainty Avoidance. A high power distance implies that the power is
unequally distributed among the organization and it is centrally authorized and
controlled. High Uncertainty Avoidance depicts use of formal rules, strong social norms
and a high tendency to avoid uncertainty or risks. Thus, both these factors differ largely
in the two value systems adding to the resistance from employees towards Chalon.
ANALYSIS
The culture of an organization or a region usually differs from others. A shift from one
organization to another or one location to another often highlight cultural differences which
do not seem apparent on the face of it. Subtle things like asking about one’s wife or son is ok
is one culture while may be considered privacy intrusion in another. Some are quite apparent
and easy to learn. In either case, understanding of these differences are very important,
especially in an organization setting. Considering today’s global scenario, where one is
expected to deal with cross country clients, lead global teams, work with country regulators,
and manage stakeholders across locations understanding and managing cultural differences
is essential for any organization to maintain synergies in teams and to avoid cross cultural
misunderstandings.
Also, when a new Manager is trying to bring in radical changes, resistance is expected.
Colleagues and subordinates who are affected by these changes often are negative in such
situations and if the manager is cold or unappreciative or unapproachable, often pushes these
negativities to either their pushing themselves in a shell, being unproductive or going to
extreme measures (strikes, resignations, looking for employment elsewhere etc.).
RECOMMENDATIONS
Chalon must definitely schedule meetings with the cross cultural consultant and
must try to learn and understand the cultural differences with an open mind.
Chalon must try to appreciate his colleagues and subordinates more, especially
when they deserved it.
Considering the semiformal American culture, Chalon must try to have ice
breaking sessions or team lunches or picnics to understand his team better and
also to let him team understand him better.
Make efforts to know team members individually and also show his personal side
to them.
The open door policy is fine, but sometimes personal gestures like walking over to
someone’s desk to speak to him/her shows a very personal and open attitude.
Submitted by:
Rumee Sethi
Roll no: 102 ,Section B
PGPX
