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Michelin Case

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by

Mike Woitach

on 8 April 2014

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Transcript of Michelin Case

Background
Michelin
Problem
Recommendations
What should Olivier do?
Olivier Chalon moves to Greenville, SC to lead a division of 4,000 people
Successful career thus far:
Trained as an engineer at one of France's prestigious Grandes Ecoles
Started at a European oil company
Lived and worked for 6 years in the U.K.
Worked in 6 different countries - speaks 4 languages
In 2004, hired at Michelin
Olivier Chalon is having trouble motivating his American subordinates

His employees see him as:
Blunt
Arrogant
Demoralizing
Lacking People-Skills
Distant

Chalon needs to turn the division around within
two years
The International Dream Team
Leading Across Cultures at Michelin Case
Underlying Causes
Retributional influence
Intimidation
Transactional Leadership
Active Management by Mistakes
4 Step Motivational Approach
Tell them what to do
Provide Resources and Support to get it done
Provide Rewards for getting it done
Tell them how they're doing
Trompenaars & Hampden
How far people get involved:
Specific
vs.
Diffuse

How people express emotions:
Neutral
vs.
Emotional
How people view status:
Achievement
vs.
Ascription

Kluckhohn & Strodtbeck
Time: Past vs.
Present
vs.
Future
Relationships:
Individualist
vs.
Group
vs. Hierarchical

French Culture = Red
U.S. Culture = Blue
According to our in-depth research of the four major cultural models, the French overlap with Americans on
55.6%
of total cultural dimensions.
GLOBE
Humane Orientation:
High
degree of encouragement and reward for being altruistic & friendly vs.
Low

Relative Country Differences
France
Professionalism is the key to acceptance of outsiders

Business people tend to be formal and conservative - personal lives are kept separate from business relationships.
Organizations are highly centralized with a powerful chief executive - bosses are often dictatorial and authoritative.
The purpose of meetings is to brief/coordinate and clarify issues - state your intentions directly and openly.

United States
Companies in the U.S. are organized and structured with many different styles depending on the company's industry, history and current leaders

Meetings are generally informal and relaxed in manner - but serious in content.
Business Differences
Contingent Reward
Transformational Leadership
Hamburger- Style of Communication
Full transcript