To purely take a western monetary approach believes that the other aspects (cultural, social & environment) are not relevant and what is important is the monetary return as the only measure to success is a flawed approach.
The Corporation or Government client need to find the “cultural fit” by taking into account the aspirations of the community and the Community needs to find the “corporate fit” by having an understanding of the obligations, measures and industry standards that Corporations and Government must adhere to when providing fund or building a sustainable business. The Gongan Frameworks assists the stakeholders to map out this process through a common language and directional management framework.
Gongan Consultancy found that it was important to separate the directional management planning models to achieving the end result of having an holistic approach to finding a cultural/ economic balance to developing a long term realistic business direction.
Gongan Consultancy has developed three directional management planning models;
- Gongan Cultural/ Economic Framework (bottom up approach) finding the “cultural fit” for the client’s cultural, social, environmental and economic needs.
- Gongan Corporate Planning Model (top down approach) for finding the “corporate fit” to ensure that corporations can negotiate a balanced long term agreement.
- Indigenous Business Network (IBN) Wealth Creation Model a simple conceptual planning tool to build and distribute wealth across all levels of the community.
Forcing people, families or communities from Non-Western Cultures into Western management models is not the answer – Square Peg in a Round Hole Theory.
Cultural Political Risk Analysis
Political risk analysis has been applied by financial institutions at a nation’s political or sovereign risk level when doing business overseas. Those institutions have rarely applied political (cultural) risk analysis at the local domestic level at the family or community level, the Gongan Cultural/ Economic Framework offers an analysis tool that can be utilised to undertake the cultural/ political risk analysis in parallel with the financial feasibility risk analysis.
How much emphasis does your Corporation apply to Cultural/ Political analysis when undertaking feasibility studies? Western management models have focused upon the financial feasibility of the project and have taken limited analysis on the cultural and political sensitivities that could also derail the project.
To undertake cultural/ political risk analysis on potential enterprise and JV activities between Corporations and Community groups it is important to include the following points.
- Community & Family dynamics.
- Separate Business Entity but linked to cultural, social and environmental community activities.
- Develop Corporate Structure that has the ability to manage the Community & Family dynamics; and
- Is the community Business Ready and do they have an understanding of the industry & business commitments and legal responsibilities.
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