13-10-11 Présentation Mario Formica, ATR

4ème Congrès FDEI
TABLE RONDE
Politiques et bonnes pratiques linguistiques dans
l’entreprise internationalisée
Mario FORMICA – Vice President Marketing & Airline Studies
Genève – 10/11 Octobre, 2013
From Napoli…
… to Toulouse
Agenda
ATR positioning
Aviation industry: consolidation and
international partnerships
Language strategy : the ATR case
Toulouse, cosmopolitan centre of European aviation
160 nationalities, 35 Consulates, about 180
languages spoken
AIRBUS: 57,000 employees, 90 nationalities,
20 languages, 16 manufacturing sites, 64
centers for training, spares, engineering
worldwide, about 5,000 aircraft in operation
within 280 airlines customers
ATR: 4,000 employees, 15 nationalities, 10
languages, 4 manufacturing sites, 15 centers
for training, spares, engineering worldwide,
more than 1,000 aircraft in operation within
190 airlines customers in 95 countries
50 %
~ 50bn€
~ 20bn€
revenues
revenues
1.45bn$
revenues
50 %
ATR Industrial Organization
Figeac
Bordeaux
Toulouse
Naples
Aviation industry at a glance
Aviation: key facts
3,850
192
Airports
ANSPs
34,800
3.0 billion
28.5 million
City-pair routes
Passengers
Aircraft movements
1,570
24,000
Airlines
Aircraft in service
5.4 trillion
Passenger kilometres
Aviation: jobs
More people, more places, more often
1992
2012
Airport pairs
13,246
20,831
Weekly freq.
340,279
588,808
Weekly ASK (m)
113,620
168,766
Annual pax (b)
1.2
3.0
The rise and fall of markets
While U.S. and Europe struggle …
… 85% world population: GDP @ > 3%
60% > 5%
2.7
2.3
5.9
6.0
4.0
CAGR GDP 2012-16
4.3
Global middle class growth will result in a dramatic shift in
consumption and….. travel
Shares of Global Middle Class Consumption 2000-2050
Globally, middle class demand may grow from US$ 21 trillion to US$ 56 trillion by 2030,
with 80% of growth from Asia
Source: Deloitte and U.S. Council on Competitiveness, 2013 Global Manufacturing Competitiveness Index
From what perspective do you view the world?
From the G7, to the BRIC, to the MIST, to the
Next 11…
New terms and catchy acronyms have been introduced by economists to define groups of countries with the world’s
largest economy in the 21Ist century, to challenge the G7.
G7
BRIC
MIST
N-11
USA
Japan
Germany
France
Brazil
Russia
India
China
Mexico
Bangladesh
Indonesia
Egypt
Indonesia
South
Korea
Iran
Britain
Turkey
Mexico
Nigeria
Canada
Italy
According to projections, the collective growth
of MIST countries will continue to exceed that
of the G7 through to 2030 (Goldman & Sacks)
Pakistan
Philippines
Turkey
South
Korea
Vietnam
Criteria: Macro-economic stability, political maturity, openness of trade/ investment policies, quality of
education
Aviation Industry – Main features

High technological level

Huge investments to develop
new technologies

Strategic importance of aviation
industry for the country/state
and primary role of military
industry

« Two speed » economic growth
 Consolidation of manufacturers and suppliers
 Consolidation of airlines
Europe - Aerospace Industry integration
& co-operation
Dassault 6%
Racal
Now 100% Thales
THALES
TMS
Saab
Rheinmetall
BAE
control 35%
STN
Atlas
BAE
SYSTEMS
DASSAULT
Thomson-DASA
Armements
Airbus
Eurofighter
MBDA
Alenia Marconi
Systems
FINMECCANICA
AgustaWestland
GKN
EADS
47%
EADS
Constraints on globalised aerospace
• Mergers and acquisitions often fail to create or even
destroy shareholder value, due to:
• Failure to properly integrate organisational
cultures, both at senior leaderships ranks and down
to the front line.
Failures of multicultural Business Ventures
30%
attributable to problems with
strategic planning, finance,
know-how, etc.
70%
attributable to problems in
behavior patterns of those
involved in management and
negotiations
Source: Ralf Thomas – The human element: the impact of mergers and acquisitions on organizations and people – Sloan School of Management – Massachusetts Institute of
Technology
The drivers towards industrial co-operations in the
aerospace manufacturing industry
R&D investments no longer affordable by a single company - Need for
sharing investment efforts and reducing burden
Prohibitive costs required to launch and develop new commercial
airliners programs (e.g. $ 2 Bn for 100 -seat jet; $ 15 Bn for A380) Even for a derivative aircraft
Risks amplified by extended time-scale in achieving break-even and
acceptable return on the investment - More than 10 years time
Need to avoid duplicated activities and achieving economies of scale.
The ATR experience
ATR: an exemple of a cultural challenge and of
excellent cultural integration
Natural Partners, a common language, a more and more
mutual understanding.
ATR : the beginnings
➽ The cultural shock was very strongly felt at
the beginning
➽ No ground for cohabitation
➽ Holding its own positions
➽ Finding difficult to make any allowance
afterwards ….
Processus
d’adaptation
au milieu
culturel
“Lune de miel”
Stabilisation
➽ Language barriers finally collapsed
➽ Italian community got larger
➽ Organisation based on competences and
not passport derived
Acceptation et récupération
Choc culturel
Temps
➽ Atmosphere felt more relaxed
National cultures influencing business organisation
National Cultures
Relation to :
- Time
- Space
- Authority
- Group
- Death
- Money
- Uncertainty
- Activity
…..
Organisational Cultures
Relation to :
- Definition of the objectives
- Decision making
- Communicating
- Managing conflicts
- Negociating
- Planning
- Organisation
- Control
…..
Which one will prevail?
Golden rules for working across cultures
Establishing a systematic way
of working that encourages
members to contribute
Be sensitive to the way of
giving feedback
Sensitivity to language
issues
Active listening
High performing,multi-cultural teams features
Language Management Approaches
Language strategy
« The planned adoption of a range of techniques to
facilitate effective communication with customers
and supplier abroad. »
Measuring the impact of language skills
on economic performance (2003-2013)
5 elements of language management have been
identified to support successful commercial performance:
Recruiting native speakers with language skills and use of the local agents,
Website adaptation,
Use of translators and interpreters,
Multilinguage (and local language) skills of commercial rep’s in areas like Latin
America, Asia and Middle East,
Reinforced work experience of employees in other countries to improve not
only linguistic skills, but also awareness of a different business culture.
Increasing portfolio of customers and countries
(2003 vs 2013)
2013
190
Number of ATR Operators
+110%
2003
90
2013
95
Extending presence worldwide
(countries where ATR fly)
+55%
2003
60
Worldwide presence
190 Airlines operators in
95 countries
Close to the customers
Leadership
Orders by region
As of 30 of June 2013
N. 1 Turboprop manufacturer
worldwide
More than 1,300 firm orders
17%
33%
190 airlines operators and leasing
companies in 95 countries
North America
Asia Pacific
Africa - Middle East
Backlog of 250 aircraft valued at
5.0 Bn US$
Europe/CIS
Latin America
32%
8%
10%
About 800 new ATR orders in the last 9
years; 70% from fast developing
economies
Milestone 2012:
1000th ATR delivery
Milestone 2013:
Production ramp-up to 80+ aircraft per year
Which languages?
English is the key language to gain access to export
markets (lingua franca).
Spanish is more and more « mandatory » in Central and
South America countries.
French is used to trade with partners in areas of Africa
The backlash against Russian which was noticeable in the
former Soviet Bloc countries at the end of the last century is
not in evidence and Russian is extensively used in Eastern
Europe as a lingua franca (along with German and Polish).
English is used for initial market entry, but longer-term
partnership depends upon relationship building and
relationship management; to achieve this, cultural and
linguistic knowledge of the target region is essential.
Turning diversity into opportunities
Key to the success of ATR is the cultural diversity. Our global team is made
up of employees from more 15 nationalities who speak 10 languages. And
as a top management priority, diversity allows to forge powerful
collaborations.
We encourage inclusion and respect for how individual differences
contribute to our collective performance. And although our headquarters
and manufacturing sites are based in Europe, we conduct business all
over the world.
It’s the difference that makes the difference!!!
The Iceberg’s Theory
B
BB
V
V
B = Behaviours
V = Values
Les représentations que le peuples se
font les uns les autres sont un des
éléments fondamentaux de la
communication interculturelle.
Stéréotypes
européens
Les stéréotypes et les préjugés sont leur
expression la plus rudimentaire.
Relationship with manager…..
What might happen when:
An employee who believes a manager should
have always answers (to questions), works with a
manager who does not believe a manager should
have answers?
A manager who believes a manager should have
answers (to questions), works with an employee
who does not believe a manager should have
answers?
Values Difference
Intercultural
Communication
Integrating organizational cultures
 Turning diversity into opportunities.
 Mobilize the cultural peculiarities and turning them to
competitive advantages .
 Sensitivity to language issues and active listening
 Recognize and utilize cultural differences as strengths of
your team.
Les langues fournissent les clés des
cultures qu’elles représentent
 Le multilinguisme promet l’ouverture et la tolérance mais ouvre
aussi les portes à de nouveaux marchés et à de nouvelles
opportunités commerciales
 Le multilinguisme favorise le dialogue interculturel
 Les entreprises multinationales et aussi les PME doivent
adpater leurs politiques de recrutement, leurs stratégies de
formation et leurs principes de mobilité pour encourager le
personnel à utiliser et à développer leurs compétences en
langues.
Merci de votre attention
Mario FORMICA – Vice President Marketing & Airline Studies
E-mail: [email protected]