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Suitable for Growth |
19
CASE
Losing face in front of top management
A general manager of a subsidiary in China was advised by a professor to
make a project plan that focused on verifying the most critical assump-
tions first. As soon as new knowledge was acquired, the project plan should
be revised and adapted accordingly. The general manager liked this way of
working since he was Chinese and knew from experience how fast the market
is developing in China and how risky it can be to base new business develop-
ment on wrong and dated assumptions. Nonetheless, the general manager
rejected working in this entrepreneurial manner, since he knew he might
lose face in front of the top management at headquarters in Denmark. The
Danish management would not take him seriously, if he first showed one
project plan and soon after showed them another plan. In this company, a
well-documented business case and plan was an important decision basis for
initiating new projects and investments. To the Danes, changing an approved
plan was considered bad project management regardless of the unpredictable
market dynamics.
As companies continuously strive to optimize their operating procedures, they have a
tendency to develop "one size fits all" processes, since it takes more resources and
increases complexity to develop, implement and maintain several processes. However,
as the case illustrates, standardized business processes and principles used at the
company HQ are often not suited for the very different and rapidly changing conditions
that exist in the local Chinese market.

Having several styles of operating within the same company obviously require greater
managerial agility at HQ.
"
Sometimes
customers don't
understand what
we are trying to
sell them ­ they've
simply never seen
it before. Obviously,
they won't order
anything, unless we
explain what they
are getting and what
they can use it for.
Make
Design
Launch
Learn
Chinese Agile process
Design
Prototype
Test
Adjust
Make
Launch
HQ sequential Stage-gate process
Changing the brand to fit local taste is not an easy choice
Usually, a company will have very specific definitions of their brand and the company
will adhere quite strictly to its brand value and corporate identity in order to build
and maintain a strong relationship with customers. Naturally, the company will try to
protect the brand from devaluation.