TTS Marine Division

TTS Group ASAKulturprosjektet i TTS:Kompetanse-strategi for å lykkes i KinaInternasjonaliserings-konferansen, 2012Ivar K. Hanson TTS Group ASA

TTS Marine Division • Generelt om TTS • Driver for kulturarbeidet • Kulturprosjektet • Veien videre • Q&A

TTS Marine Division Hvordan bygge en sterk organisasjon på tvers av kulturer.. • Genereltom TTS • Driver forkulturarbeidet • Kulturprosjektet • Veienvidere • Q&A

TTS Group Structure TTS Group TTS Group ASA is listed on Oslo Stock Exchange Energy Division Kristiansand Marine Division Bergen Port & Logistics Division Gothenburg

TTS Group ASA Global presence, 28 units in 15 countries

TTS Marine Division Business Areas Operations split into four separate Business Units

TTS Marine Division Locations – Centres of Excellence TTS Marine AS and TTS Ships Equipment AS, Bergen, Norway TTS Marine GmbH Bad Swartau, Germany TTS Marine AB Gothenburg, Sweden TTS Marine GmbH Bremen, Germany

TTS Marine Division TTS Bohai Machinery China Operations TTS Marine Equipment JiangNan TTS Marine Equipment TTS Hua Hai TTS Marine Shanghai

Chinese Shipbuilding Shipbuilding Capacity

TTS has a strong foothold in China • TTS has gained a ~60–70% market share within its niches in China • World’s fastest growing market within Marine equipment • The largest rig-building market by 2015? TTS market share within hatch covers in China:

TTS in China Turnover TTS companies in China 2005-2010 MNOK

TTS structure in China J/V structure

TTS Marine Division Overføring av teknologi og kunnskap fra Europa til Kina Lukedeksler (markedsandel 60%) 2000-2003 Kraner-HH (markedsandel 60%) 2004-2007 Kraner-Cargo (markedsandel 20%) 2008-2011 Wincher (markedsandel 6%) 2011---

TTS Marine Division Erfaringer • Konflikter i teknologioverførings- prosessene har vært dype og hyppige.. • Konfliktene har hatt høye omkostninger m.h.t; • Merkostnader • Ledelsesfokus • Sub-optimale beslutninger • Kunde/ markedsomkostninger • Høy pay-off å redusere disse omkostningene • Nødvendig å avdekke årsaks- sammenhenger • KULTURPROSJEKTET I TTS

TTS Marine Division Kulturprosjektet • Samarbeide mellom TTS, BI og den norske Ambassaden i Beijing • Intervju av 60 TTS ledere og nøkkelpersonell involvert i samarbeide mellom TTS’ Europeiske og Kinesiske enheter.

TTS Marine Division Kulturprosjektet Two problematic starting points.. Over-mystifying the China Scene.Becoming too cultural sensitive Business is the same everywhere

TTS Marine Division Kulturprosjektet • We are totally dependant on Norwegians, Germans, Swedes, Chinese work well together • This is a significant challenge

TTS Marine Division Kulturprosjektet ..about the Norwegians.. • ..’’The Norwegians are a bit like the Chinese; They don’t make decisions like the Germans but keep on discussing about possible solutions without actually doing anything about it..’’ (Chinese)

TTS Marine Division Kulturprosjektet ..about the Germans.. • ..’’German’s supreme quality standards and stubbornness related to this is a good thing and China has to follow at some point anyway, otherwise no development can be achieved..’’ (Chinese)

TTS Marine Division Kulturprosjektet ..about the Chinese.. • ..’’It is not about bad will…butiftheybelievetheycan trick youwithout ‘’beingtaken in theact’’ and losing face – theywill do it. If they have made a mistake – theywill do whatevertheycan to cover it up..’’ (German) • ..’’In Asia, when you make an action plan and people say yes, it still does not mean that we are going to do it. There are different “yes” answers for different aspects of plans and actions..’’ (Chinese)

TTS Marine Division Kulturprosjektet ..about the Germans.. • ..’’Germans always think about changing bad parts with new ones. The Chinese always first think about how to repair them…’’ (Chinese) • ..’’Germans want to deliver quality more than to give into customer’s wish..’’ (Chinese) • ..’’In China, you need to describe a problem without identifying a person - and only a few Germans in TTS are willing to compromise on this to get things done in China…’’ (German)

TTS Marine Division Kulturprosjektet ..general perspective.. • ..Norwegians, Swedes and Germans have different relationships to the Chinese. Norwegians have good relations, Swedes have average relations and the Germans have difficult relations due to attitudes…’’ (German) • ..’’Germans and Norwegian have different mentality than Chinese regarding vacations. Norwegians are worse than the Germans in this aspect…’’ (Chinese)

Turning a Challenge to a Strength.. Cultural Differences – A Competitive Advantage Norwegians High ability to create a ’’family’’ strength of a relation in a company setting – achieveing strong Guangxi with Chinese Germans Supreme quality standards that may lift general Chinese quality level Swedish Systematic – disciplined – long term work - step by step build-up. Chinese Extreme customer orientation and flexibility to meet customer needs

TTS Marine Division Values & Guidelines; Building a Cultural Conscious Organization • We co-operate to serve customer and markets • We commit to global teamwork • We build on the strengths of our colleagues • We respond quickly to colleagues and customers • We do not risk our brand value (for quick wins) • We know that the end user is our most important customer • We transfer knowledge and technology with speed and trust • We strive for clear common understanding before starting a project/process.

TTS Marine Division Building a Cultural Conscious Organization = Building Cultural Competence • Training: Awareness of the Cultural Challenges in the Division • Culture seminars for all employees at all main locations – during 1st half 2011 • Cultural Guidelines & Values • Guidelines and Values; Established and under implementation • Culture Experience Database • Interview ‘’Cultural Champions’’ & make findings available on TTS Intranet • Advisory Service • Identify ‘’Culture Champions at Each Entity’’ • Cultural manuals • Cultural guide for : Europe to China, China to Europe • Research Projects on Cultural Challenges • NHH,AFF, SNF: The GOLD project, 2009-2010 • TTS /BI / Ministry of Foreign Affairs, 2010-2011 • ‘’Global Human Resources Development Study Group’’, 2011-2012

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TTS Marine Division