Int. J. Technology, Policy and Management, Vol. X, No. X, xxxx
A cross-cultural management system: The Ubuntu Company as paradigm Otto Kroesen* and Arnoud Rozendaal Faculty of Technology, Policy and Management, Department of Philosophy, Department of Technology Dynamics and Sustainable Development, Delft University of Technology, Jaffalaan 5, P.O. Box 5015, Delft 2600 GA, The Netherlands Fax: +31 0 15 278 62 33 E-mail:
[email protected] *Corresponding author Abstract: Although entrepreneurship is generally considered to be a promising solution for development in Africa, not yet much scientific work is available on the question, how to take the African cultural context in due consideration. A western-style business plan cannot just like that be transferred to the African context. Cultural differences should be taken into account and, moreover, a bridge needs to be built between different value sets. The management model of The Ubuntu Company explicitly takes into account cultural differences and deals with them in a creative way, resulting in a socially responsible business, which is at the same time competitive on the international market. In this management model, African collectivism is taken seriously but counterbalanced by individual initiative and judgement; western style disciplined labour and time management is introduced, but counterbalanced by attention for individual problems and, not the least important, servant leadership of the managers. Keywords: cross-cultural management; company models; partnership; leadership. Reference to this paper should be made as follows: Kroesen, O. and Rozendaal, A. (xxxx) ‘A cross-cultural management system: The Ubuntu Company as paradigm’, Int. J. Technology, Policy and Management, Vol. x, No. x, pp.xx–xx. Biographical notes: Otto Kroesen is an Assistant Professor in Philosophical Ethics and Technology Dynamics. He conducts research on the coevolution of cultural values, society and technology both related to the history of the West and to present day problems of technology transfer and development cooperation between North and South. He teaches ethics, intercultural communication, history of technology and functions as internship coordinator for internships in developing countries of the Department of Technology Dynamics and Sustainable Development of the Delft University of Technology. Arnoud Rozendaal is an MSc Student in Aerospace Engineering at Delft University of Technology. From 2007 to 2008, he was an Elected Board Member of the Central Student Council. In 2008, he cofounded The Ubuntu Company and was a Director until Augustus 2009. He is interested in intercultural management and applying his analytical skills to complex business Copyright © 200x Inderscience Enterprises Ltd.
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O. Kroesen and A. Rozendaal problems. He continues his study career in a graduate programme in Management and Strategy at London School of Economics and Political Science in September 2010.
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Introduction
There is a huge market at the bottom of the pyramid, if we start looking at the masses of poor people not as passive objects of charity, but as consumers making choices on their own account. That may be, especially, true for the bottom billion of the poorest people, living mainly in Africa (Collier, 2007). This new perspective sounds promising for the African continent. The success of the mobile phone in Africa is a case in point. Selling drinking water in small plastic bags is another example. But can these masses of consumers also be looked upon and act as producers? That is the central question of this contribution, focusing on a paradigmatic case, the recently started The Ubuntu Company in South Africa. We will not address the general economic question, whether African producers can enter the world market like once in the 1980s the Asian economies did, thereby establishing viable economic centres, competitive to the western centres of production. They would now also have to compete with the Asian economies, which makes it more difficult for them than it was in the 1980s for the Asians (Collier, 2007). But this may not be the biggest difficulty. Our focus is the enormous cultural transition for the masses of poor people in Africa, which is necessary for entering the world market on the basis of increased human production power. What is required is not only financial capital, but also human capital in terms of capacities, skills and a set of human qualities which is conditional to effective production and technology development. In the following sections, we will tell the story of The Ubuntu Company, put it in the framework of the intercultural management debate and then give a more in-depth analysis of the management system involved. Finally, we will explore to what extent the story of The Ubuntu Company can function as a paradigm for development at the bottom of the pyramid and identify some key factors for its success.
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The Ubuntu Company
The Ubuntu Company, better known as the Plakkies factory, was recently founded nearby the Durban townships in South Africa. This factory produces Plakkies, which is the ‘Afrikaanse’ word for flip-flops. These fashionable as well as sustainable flip-flops are launched on the Dutch market in May 2009 and became the Dutch summer hype of 2009.
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Plakkies
Two students of the Delft University of Technology, Arnoud Rozendaal (Aerospace Engineering) and Michel Boerrigter (Industrial Design) together with Robert Baruch, board member of the Dutch non-profit organisation KidsRights, set up from scratch
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a unique and socially responsible factory that manufactures Plakkies. This factory can be seen as a new way of cooperation for development, as it creates structural employment and generates an economic impulse for an entire region dominated by poverty (over 70% is jobless and 30% is HIV infected) by selling quality flip-flops on the Dutch market under a fashion brand Plakkies. The profits made by The Ubuntu Company are donated to local AIDS orphan projects supervised by KidsRights. Inspired by the local community that makes sandals out of worn tires, the sole of the Plakkies is made out of old car tires. Where in Europe tires are collected and recycled, in South Africa they are illegally dumped and burned in large numbers, which is incredibly damaging for the environment. Thanks to the Plakkies factory these tires are collected and reused again. The Plakkies have a fashionable look as they are designed by the well-known Dutch shoe designer Jan Jansen. The colourful patterns on the flip-flops are designed by orphans living in the Durban townships. What started as an ambitious idea on paper, would grow in just one year to a modern factory in Durban South Africa. In February 2009, production started with an output of less then ten Plakkies a day. Within four months this factory evolved to production of 800 pairs a day and employs 70 underprivileged inhabitants from the Durban townships. After many years of unemployment this job brings back their dignity and gives them a chance to work on their future again. With the salary each employee on average takes care of himself and 10 others, thus 700 people are directly getting profit from this factory! Indirectly a regional economic impulse is created as raw materials and services are locally bought and local suppliers are able to employ new people. On 13 May, the Plakkies’ market introduction was held on the busy Dam Square in the centre of Amsterdam, what was said to be the biggest launch of a new flip-flop brand ever on the Dutch market. On a catwalk made of used car tires, models and Dutch celebrities presented the flip-flops in a spectacular fashion show. The show was opened with a video message of the Minister of Development Cooperation Bert Koenders and the Minister of Economic Affairs Frank Heemskerk, as they opened the factory a day earlier. Headlines such as ‘Plakkies on unique catwalk’, ‘Fashionable feet with Plakkies’ and ‘Trendy sustainable slipper’ appeared in many newspapers. National television and radio intensely paid attention to the Plakkies. A unique billboard campaign started and a Plakkies commercial was broadcasted during the whole summer on Dutch television. Over 23,000 pairs of Plakkies were sold. This was all done with the support of many companies. Not only the marketing campaign was sponsored, but also the entire starting capital for this factory. The whole chain from South Africa to The Netherlands, including warehousing and distribution, was sponsored, supporting the Plakkies as airfreight, and even the retailers sold the Plakkies without any margin! This was all done to compensate the high start-up costs of The Ubuntu Company, resulting from the employment of 70 inexperienced people from the townships. The Plakkies are positioned in the market as a fashion brand and not as a charity flip-flop. In this way, a sustainable brand can be established which will last for the coming years and structural employment in the Durban townships is assured. All this is at the forefront of public attention. Less known is the management system of The Ubuntu Company behind the scenes, and the difficulties and challenges of the cooperation between Dutch and South Africans and Dutch and South African styles of management. That is the story we want to tell here, but we will do so within the framework of the intercultural management debate.
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Management, technology and culture
Never does technology stand on its own. In the technological hardware cultural values are inscribed and encoded. Give a ball to a boy and you know what he is going to do. The ball asks for it. Technology and codes of behaviour, ways of handling the technology, values and lifestyles, they are always implied in each other, they go together. But this takes place in different ways. We can distinguish at least three. 1
Sometimes the technological hardware is first: A specific technology is designed and produced and often unexpectedly it changes the culture. Cell phones promote individualism. Increased connectivity promotes modernisation and may in the long run loosen family ties. By building roads mobility increases and rural life turns into city life.
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But it works also the other way around: A set of values may lead almost automatically to the adoption of technologies, which promote and articulate those values. Values in this case materialise in the specific design of a technology. An information management system within a company, which authorises different people to access information to a different degree, depending on their place in the hierarchy, reproduces, reinforces and materialises this particular type of authority. The value of open communication between scientists and the value of progress in science are expressed in and gave an important impulse to the coming into being of the internet (Misa, 2004).
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A third case is also possible: specific technologies may require to be managed according to a specific set of values. In this case, the technology and the corresponding values and ways of behaviour have to be introduced in one package, at the same time. A particular technology can only be introduced if new values, ways of behaviour and management are also introduced. This means, that if such a specific set of cultural values is not in place, such a technology cannot be dealt with effectively. The navigation of 16th century sail ships may serve as an example. It required a disciplined line of action, labour division and machinelike behaviour of all the people involved. Only if people are willing to order their behaviour in such a way such a technology can be handled. An important cause for Spain for losing the Armada in the battle against Great Britain in 1588 was the fact, that the Spanish nobility had separate management lines for firing and navigating. The British nobility, which was not too proud to combine the management of firing and navigating, won the battle. They named themselves ‘Commons’ and gathered in the ‘Lower’ House. Their values made it possible to deal with technology in a new way and it made the technology more effective.
It is the last type of relation between technology and values which will ask our attention in this contribution. Introduction of a competitive and high-quality production line calls for a cultural transition, without which it may not work, not even come off the ground.
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Cultural dimensions and management
Every culture, like every organisation also, has to solve four fundamental questions or problems. It needs to maintain the group it organises in space and time and that requires:
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Past: to hand over the traditions of the group to the next generation,
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Outside: to meet the necessity of daily survival, the threats of nature and of hostile competitors.
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Future: to meet new challenges,
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Inside: to continuously organize agreement among the members of the group,
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These basic questions are related to four basic types of culture (Rosenstock-Huessy, 1973). They explain the different cultural dimensions, Hofstede has researched, and also the organisational types, which Trompenaars distinguishes (Hofstede, 1991, Trompenaars and Hampden-Turner, 1999). They add a historical and anthropological understanding to such sociological descriptions. This historical view explains why the West deviated from the normal human pattern and puts the dilemmas and trade-offs between modernity and tradition in a new perspective. We summarise the forms of social organisation corresponding to these conceptual distinctions and deal with them in historical order. The tribe with its reverence for ancestors, its collectivism and group awareness constitutes the oldest layer of culture, with intense respect for tradition (1). That ancestors are considered as still alive is not merely a matter of superstition, but it has a social function in that their continuous authority is needed to underpin the old traditions and convince new generations to live by them. To deviate from the group is the most dangerous thing an individual within the tribe can do, because it means the breaking down of social cohesion. This is the reason behind the harsh initiation rituals of the old tribes. If the tribe could not avoid change, it had to bring offerings and reconcile the ancestors as an act of apologising: we have to change, but we are still loyal! Family life, even in western societies, clan loyalty and consciousness of tribal belongingness, these constitute the continuous heritage of the tribal order. In Hofstede’s dimension of collectivism vs. individualism this tribal order comes to the fore. It survives and is reproduced consciously and unconsciously in all forms of collectivism, when people gather around collective symbols and flags. Even modern companies may have their tribal factions and forms of neo-tribalism reemerge within strongly modern western societies. The Family model of organisations, mentioned by Trompenaars, expresses the same spirit, in which the employer like a true father takes care of his children. Belongingness, authority, status and honour are lasting characteristics of this type of organisation. The hierarchical ordering of the great empires is a next important layer of culture. These empires introduced hierarchy and labour division, in order to survive the threats of nature and the world outside (4). Egypt, Babylon, India and China, they all installed a centralised command and control system, are characterised by divine rulership (despotism) and systematic and functional labour division, and obedience to superiors (Rosenstock-Huessy, 1956, 1958). These societies, especially if they emerged in river valleys, were capable of a huge agricultural production thanks to this systematic labour division. Even the later industrial form of production inherited the characteristics of such hierarchical orderings, like they are expressed in the Eiffel Tower model of Trompenaars. That in his view such Eiffel Tower structures are organised by rules and roles (and not by any form of particularism and arbitrariness) is a special western development, i.e. the rule of law and by law, which is now taken over worldwide (more or less, and sometimes forgotten in the West itself). Eastern despotism did not know of such rules (Landes,
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1998). In Africa, tribal partiarchalism and divine hierarchy – the heritage of Egypt in Africa – often merged. A next important layer of ‘culture’ – if it can be called a culture to be open for change – came to the fore during what is called the axial period of history, ±500 BC. Here the challenges of the future have first priority (2). Opposition movements like that of Zarathustrah, the Jews, Buddhists and Taoists challenged the hierarchical and oppressive organisation of society. They all put some form of ascetism and self-denial (also of rulers) at the basis of good governance, in order to reach higher forms of compassion, justice and harmony. In terms of Hofstede’s dimensions, they did not avoid, but accept uncertainty as a matter of entering a new future, which means giving up part of the past and humbly starting anew. In modern forms of organisation we can think of the incubators of Trompenaars or the adhocracy of Mintzberg as organisational types, representing this attitude (Mintzberg, 1983). The work is innovative, it requires creativity, it is revolutionising in character, the people are spirited and passionate. This movement too did have its effects on African tribal life, since many tribes (and also more or less tribal empires) in Africa tried to incorporate in their tribal life the high morals and longing for justice of Jewish groups living in the diaspora (Van Slageren, 2009). Of course, like the Jews themselves they always also fell back. But they may remind us, that never in history – apart from some all too quiet times – people have merely continued their traditions without reflection, but everywhere history is full of turmoil and rebellion, suffering and struggling for a solution for peaceful living together and surviving in the process. This driving force towards the future, most strongly developed in Judaism, was in the West translated into a series of temporary compromises between change and tradition. It created temporary forms of social agreement between pluralistic parties (3). Monasteries were founded far away from centres of power and still these monasteries were integrated into it. The Pope and the papal party struggled – with the cities on their side – against the Emperor, later the German princes against the Pope, the English Parliament against King and high nobility, citizens against ancient regime in France, proletarians against bourgeois (Rosenstock-Huessy, 1993). These revolutionising movements cleared the way towards free association of individuals apart from family loyalties and not subjected to state authority. It actually produced a middle sphere between family and state, which is now called civil society. It created human qualities like individualism, egalitarianism, neutral and role dependent behaviour, orientation on merit and not status, a sequential ordering of time (planning) and an inner space (reflexivity and conscientiousness) as a source of change. What strikes the eye of eastern and southern observants of western individualism is the arbitrariness and seemingly normlessness of it. What is less apparent is the open process of coordination of differences and mutual criticism and yet solidarity and cooperation, which is also a part of it. This western deviation of the normal human pattern comes to the fore in the dimensions of Hofstede as individualism vs. collectivism and equality vs. power distance. In the types of organisational structures of Trompenaars, it is reflected in the ‘guided missile’, with its constant mutual adaptation, realignment and flexibility, in order to reach the goal. Often in the West the guided missile and the Eiffel Tower are applied together in a sort of hybrid combination. In hierarchical organisations democratic feedback loops are integrated.
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Modern and traditional values
This historic and sociological view on the development of cultures may set us free from either suspicion or shame of western superiority and also set us free from understanding the process of globalisation as merely a process of westernisation. In a sense it indeed is a process of westernization, as a matter of fact since like Mahbubani has shown many characteristics of western type organisations have been taken over by India and China and explain their success (Mahbubani, 2008). Nevertheless, globalisation is actually a process of finding the right equilibrium between the newly developed values and organisation patterns of the West and old traditions. These old values such as belongingness and hierarchy even survived in the West and the crisis of western consumerism, extreme individualism and the accompanying moral indifference also shows, that the West itself has difficulty in finding the right equilibrium. The difference between modern and traditional cultures appears to be equivalent to the degree of development of civil society. In a sense, civil society understood as free association of individuals in the West has pushed the traditional collectivist and hierarchical management and governance styles to the background (Stackhouse, 1984). Modernity can be understood as putting in place a set of human qualities and ways of behaviour, which replace the bonds of tradition and hierarchy. Important cultural characteristics like discipline and labour as values in themselves (and not because of being bossed around) the value of ordinary life (instead of status), cooperation despite pluralism and criticism, a sequential ordering of time, a role oriented and universalistic way of dealing with other people (rule of law, playing by the rules) have come into play to keep society together instead of the bonds of hierarchy and family loyalty. That does not mean, that hierarchy and collectivism do not exist anymore, but somehow they are relativised and they incorporate egalitarianism (and therefore open communication, loyalty and criticism, and coordination of pluralism). Technological invention and largescale production developed together with such a set of modern human qualities, supported by accompanying institutions (Kroesen and Ravesteijn, 2006). Now the question is how such a set of (modern) values can be introduced in a more traditional social context and find some form of equilibrium with it, even if temporary. If a phase of transition is inevitable for the introduction of new technology, it is also indispensable to recognise the lasting value of traditional values and integrate them into a more modern production system. One of the central questions for increasing production power of African societies is how to solve this problem, i.e. building an acceptable bridge between old values people are attached to with their inner souls, and on the other hand new values, which can meet the human needs they too want to see fulfilled. The Ubuntu Company is only a case in point, but it may be paradigmatic. It may prove to be a model to follow in this quest, at least in several aspects. It is our aim to come to grips with this model and try to understand what is actually happening there. We might learn from it.
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The management model of The Ubuntu Company
The Ubuntu Company has a unique business model, which creates a bridge between traditional and modern values. There are many examples of Europeans implementing a technical solution for Africa’s problems – with good intentions – but they forget to take the local culture into account. A machine is placed and once the supervision is gone, this
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machine is used for entirely different purposes. To prevent this from happening in The Ubuntu Company, a business model was developed that not only deals with the traditional black South African culture but also tries to evolve it in a way that in the future it is able to operate on its own in the ‘Western’ world. For that reason, the goal is to transfer the ownership of the factory after a couple of years to the local community. The management model used in The Ubuntu Company is based on the merging of two models defined by Trompenaars: the Family and the Eiffeltower model. It combines the result focused aspect of the Eiffeltower model and the personal, more team-related aspects of the Family model.
7.1 Local management The daily management is in the hands of a three headed local management team consisting of a General, a Financial and a Production Manager, which reports to a Dutch board of directors. The management structure and style are all focused on creating a factory, which is able to run on its own. This sometimes implies that a cultural transition is needed. We describe several aspects of this management model.
7.1.1 Strict regulation In an ideal Family model, corresponding to a collectivist culture, only half a word should be enough to stimulate employees to fulfil their task. Not the explicit rules, but the social pressure should lead to achievement. Nevertheless, The Ubuntu Company needs regulation. For a better understanding of these rules, one first needs to take the black South African culture into account. The South African culture shows aspects of particularism as well as universalism. On one hand, trust and personal relations play an important role, on the other hand due to its Apartheid history – in which ethnic inequalities were defined in strict rules – there is nowadays a strong want for equality, universalism and regulation. Although Apartheid was dismantled 14 years ago, its history has left its imprint and discrimination still is part of the daily reality, also in factories. Mandela’s call for reconciliation and equality still lives in the hearts and minds of many black South Africans. Until today Apartheid has left a bitter aftertaste. Strict regulation is often the only support against racism. The rules of The Ubuntu Company are, therefore, permanently hung up in the production hall. Simple and clear rights and equality are underlined. “Employees have the following rights: -
Right to be heard
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Right to cross examination
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Right to call witnesses
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Right of appeal
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The particularistic attitude of South African culture often results in subordinating production to personal attention. A friend paying a visit means that – despite deadlines –
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the work stops and the visitor gets all attention. The consequence is discontinuity in production. On paper, the consequences of transgressing the rules are severe: “Desertion form the workplace _1st Offence: Dismissal” “Late for work _ 1st Offence: written warning; 2nd Offence: final written warning; 3rd offence: Dismissal” “Sleeping on the job _1st Offence: final warning; 2nd Offence: Dismissal”
In theory this should lead to strict and equal treatment. In practice, however, many times the rules are offended. Sometimes people are late, then again somebody is not on his working place and such without permission. It is the daily dynamics. Nevertheless, the practice is more lenient than the rules on paper. In the end, the employee expects the management to make an exception because of the personal relationship. Thanks to the building up of bonds of loyalty between management and employees however this behaviour does not lead to neglect of the rules.
7.1.2 Management style The management style of The Ubuntu Company is not only characterised by personal relationships, but also by authority. Tribal traditions require strong leadership. This is most strongly articulated with the Zulu. The Ubuntu Company employs mainly Zulu as 60% of the Durban population is of Zulu origin. This has been a warrior tribe with a very disciplined and hierarchical tribal tradition. The particularistic character of South African culture in addition requires a very personal style of leadership. The Production Manager – in command of the shop floor – is selected for and also trained in his capacity of building up bonds of loyalty with the employees. This creates more commitment. They feel they are more than only cogs in the machine. This is stimulating for the motivation and in the long term it creates a company culture in which individuals are loyal to the community of the company. The Production Manager should be considered as an older brother and not as a bossing type of manager.
7.1.3 Loyalty and power distance Building up bonds of loyalty is more easily said than done. In general, power distance stands in the way of loyalty. The disciplined and hierarchical tribal culture accepted a privileged status of the chiefs, who were in command without any room for opposition. Even in modern society these traditional norms and values are not forgotten, especially among the Zulu tribe. In the past, the Zulu struggled against the English occupation, during the Apartheid they united in the Inkatha party and fought against the increasing power of the Xhosa party, the ANC. And even now the Zulu have their own King Goodwill Zwelithini kaBhekuzulu and some aim still for independence of their province KwaZulu-Natal. The Zulu community has a strong need for authority, it has intense respect for elderly people and for the lower educated people the words of their leaders are the final truth. For instance, many of them believe that the risk to incur HIV infection is reduced by taking a shower, merely because present Zulu president Jacob Zuma said so in public. This power distance and need of authority are quite visible also on the shop floor. Of primary importance in overcoming these obstacles to the creation of loyalty is the role of the Production Manager. In the first place he should receive respect on the basis of his age. But in addition such respect should rise to a higher level on the basis of an
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attitude of servant leadership (Greenleaf, 1977). He should be looked upon as somebody to learn from. He strives to a win–win situation, has a keen eye for his personnel, he still works when everybody is already going home, he provides meals and medical support if necessary. He is an example. He leads by serving (Jaworski, 1996). He does not merely receive respect because of his title or function, but on the basis of his behaviour, what he says and does. Such a bond of loyalty reaches its peak, if in turn the manager can ask something back from his employees, such as working longer in case of deadlines. It is this kind of management which is trained and exercised at The Ubuntu Company. To maintain mutual respect the Production Manager on the one hand corrects his employees firmly if necessary, but on the other hand he also shows interest and expresses his gratitude when he is satisfied. He treats everybody equally. It is important, that this type of servant leadership maintains its exemplary behaviour. In South African culture it is a common phenomenon of the leaders to concede themselves certain privileges. The management often is neglecting the rules which it expects the employees to follow. This is detrimental to the bonds of loyalty. For that reason, the Work Council should be authorised to denounce management in this respect. In addition it is important, that the management communicates transparently about its own behaviour, e.g. giving reasons in case of absence, etc. Since the Production Manager has become a leading example for many employees he also uses his function as a role model to make clear how to deal with money and alcohol, issues that cause many problems in the local community. He does so not by moralising, but by showing how it is possible to drink in the weekend and still be on time on the job at Monday.
7.1.4 Work council As said before, it is the explicit goal to hand over The Ubuntu Company entirely to the South African population, once it is run successfully and the trademark Plakkies is established after an estimated four years. To that end, it is important that from day one onwards a feeling of ownership is promoted. This is realised by means of the Work Council. The management involves the employees in the daily affairs by discussing issues such as the length of pauses, milk on Friday or not, etc. The employees are stimulated to give their own opinion. Because of the collectivist South African culture often people do not speak out individually, but give a group opinion. Nevertheless developing an individual judgement is essential also for discussing bigger issues with the employees in the future. For this reason, a Suggestion Box is installed. It remained empty during the first months of production, like expected. But slowly employees start to depose ideas in it anonymously. These ideas vary from a new colour for the Plakkies to the proposal to have music on the shop floor. It is a first step and will eventually result in increasing loyalty as the employees have become owners.
7.1.5 Performance indicators To involve the employees, they need some basic knowledge about the production process and the ideals of The Ubuntu Company. Performance indicators on the walls visualise the relationship between production and reward. Each working station has its own graphics. Each half hour the produced number of units is put into the graphic. A thick red line represents the daily target. Beyond that line the company earns profits and a bonus is returned. The employees know when the work is profitable. This too promotes a sense of
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ownership. The bonus system makes it clear, that the goals of the management correspond to the goals of the shop floor. All of this is essential to overcome the lack of inner drive to perform and the lack of trust that the future will bring more than only poverty, caused by the cyclical experience of time. An African saying sounds: “A men gets finished, but work will never be finished”.
7.1.6 Teamwork Up to nine different tribes live together in South Africa, of which the Zulu and the Xhosa are the biggest. Each tribe has its own culture, traditions and language. These tribes consist of hundreds of clans. Many tribes feel superior to each other and this often is an occasion of violent conflict. Thanks to Mandela’s policy of reconciliation after the phase of Apartheid this struggle is mainly fought in the political arena. In a collectivist culture like that of South Africa each individual is part of a group. This group offers protection to the individual from the day of birth and expects unconditional loyalty in return. Successful production requires close teamwork. Because of the large majority of Zulu people in Durban most of the employees belong to the same tribe. Nevertheless cooperation remains difficult, because everybody is from a different family and clan. From the first day onwards subgroups came into existence on the base of subethnicity, Zulu became the first language and the rest had to adapt. Clans living on the hills felt superior to clans living in the valley. Colleagues may refuse to communicate in a different language. To remove the barriers between the subgroups The Ubuntu Company came up with three solutions. Uniform clothing: the employees of The Ubuntu Company wear a blue overall with on the back of it the words The Ubuntu Company. This promotes equality, but also pride. The pride to work at The Ubuntu Company is an important factor in overcoming the competition between the clans. Group bonuses: individual bonuses do not work. In the long term they cause too much competition among the employees at the detriment of the quality of the product and the output. In correspondence with the collectivist South African culture a bonus system for the whole group is introduced. Since these bonuses can only be acquired by mutual cooperation they help in overcoming the cleavages between the different clans. In addition, they work as a means of regulation. Hardworking employees spurn their lazy colleagues because otherwise the whole group falls victim to decreased productivity. Workstations and circulation of labour: the production line is split up in ten workstations. In the beginning each workstation was dominated by a particular clan, but that did not serve cooperation between the workstations very well. By means of labour circulation the groups are split up and mixed. A workstation group was formed by two experienced employees and the other chairs were given to employees from another station. The consequence was that they learned from their colleagues how to do the work. And cooperation was unavoidable. Stimulate social interaction: a birthday calendar, dancing and singing together at the morning prayer, shared lunch at noon and once in a quarter of the year a ‘braai’ – all of this serves to create cohesion and a sense of belongingness. Furthermore, The Ubuntu Company tries to create a company culture in which HIV can be discussed, as most of the employs are HIV infected, which is still a taboo in South Africa. Therefore, most of them
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refuse to talk about their infected status. Thanks to the loyal relationship with the colleges and towards the manager they find room to discuss their problems and thereby find support. In addition, medical care is offered to fight the infection. Training: the majority of the employees of The Ubuntu Company did not have any working experience. They also had to learn how to function within a company. In an individualistic culture like the West learning means to acquire knowledge in order to cope with new situations. A person learns to promote his or her own development and this is an ongoing process. The South African culture makes learning subordinate to the interests of the group. A person learns when he is still young, because in the end life is about wisdom and not about knowledge. Wisdom is gained by the years and not by means of schooling. For that reason The Ubuntu Company has introduced a learning trajectory which suits the African culture in that it explains the production process by means of role games and examples from practice. A central phenomenon of it is, that the individual learns in order to bring the group to a higher level. To succeed it is important that the Production Manager leads by example.
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The Ubuntu Company as a new paradigm for development?
The Ubuntu Company tries to find a middle way between traditional and modern values. There is hierarchy, power distance and strong leadership, but there is also an open ear for the employees, a stimulus to express a personal judgement and to be involved as co-owner of the company. There is collectivism and tribal loyalty, and this is recognised, but there is also job circulation, learning processes overcoming tribal cleavages and building up of solidarity and loyalty, even pride: pride on the company they are part of and also pride because they are part of the realisation of the promise of Mandela to create a unified South Africa. There is command and control, but there is also commitment and servant leadership, transparently communicating with the employees and building up lasting bonds of loyalty. The management of The Ubuntu Company follows a middle course between a poweroriented collectivist Family model and a role oriented and disciplined Eiffel Tower model (Trompenaars and Hampden-Turner, 1999). Family and tribal loyalties are not only recognised by group bonuses, but also job rotation is applied, by which all the employees have to cooperate with each other and are trained in different roles. Not only loss of face by criticism is prevented, but also learning processes are installed. Strict discipline is maintained, supported by sanctions but there is also attention and a lenient attitude for the personal circumstances of the employees, etc. What do we learn from this as a model for development at the bottom of the pyramid? What actually is happening here? Clearly this management model does not represent just another instance of aid in terms of service delivery, it is also more than and different from the bottom–up participatory approach of NGOs, trying to develop communities in the process of service delivery. It is also more than an incubator in which technology and policy instruments are transferred and adapted to a new context. It is actually an innovation system in which many actors line up and form a system, in which they are working together doing all the things already mentioned, but with the final goal to build up capacities and production power, and skills for doing business. And even beyond that, the company becomes a
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place to exercise and learn what it is to be human as such. The human qualities which are learned and trained entail more than mere external competencies, but as human qualities they are at the same time constitutive of the quality of being human itself. This innovation system is also a system of cultural transition, in which traditional values and values of modern civil society, which are basic for high quality and largescale competitive industrialisation and technology, are integrated, trained and developed. This challenge can only succeed, if traditional values can be married to the values of western modernity. This is a matter of dialogue. Nowhere and never will a culture only copy the achievements of a different culture. It will always put them in a new context, give a different twist to them, develop them further or invent new ways of behaviour, in order to find its own way of bridging the gap between past and future. Often the antagonism between established and new values can only be overcome, if both cultures in dialogue take a step forward, challenge each other and meet each other on a higher level. It may be too early to predict what Africa’s special path towards the future will be, and what its contribution to our common humanity may bring, but most certainly The Ubuntu Company shows the direction: modern company life can only be introduced in Africa, if such company life also develops into a communal life, in which besides western individualism and competitiveness, African collectivism and group belongingness is exercised. However, this intercultural and technological dialogue (Pacey, 1990) may only succeed if two important factors guide the process.
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Two important keys for success
Two categories of human behaviour, which are more or less implicitly present in the story of The Ubuntu Company, need to be more explicitly articulated as key to its success. These are the categories of servant leadership and long-term partnership. Partnership, which takes the other person seriously by means of dialogue, and servant leadership, which is not afraid of difficult and dirty jobs (i.e. not recognised, not valued, implying uncertainty, etc.), are key to the ‘model’. This is shown by the role of the Production Manager who acts by example and integrates in his person the traditional authority of the leader, but also commitment, hard work, an open attitude and transparent behaviour and humble work. It also comes to the fore in the role of the Dutch initiator, who was still a student in Aerospace Engineering, but who maintained daily contact with the Production Manager in South Africa. In his negotiations with third parties in South Africa itself he, being the younger person, even had to play a role subordinate to the Production Manager, whilst at the same time silently advising him, but for the sake of success not making him lose face and remaining in the background. Being on it every day, sometimes with clarity and pushing, other times with tact and patience – this in itself requires an attitude of servant leadership, in which leadership does not mean so much authority, but taking the initiative and doing the one thing necessary now, whatever it is. Such leadership cannot stop overnight. It may be the explicit goal to hand over the factory to the South Africans themselves, but it takes commitment and time to turn this into reality. Such commitment stands in sharp contrast to many short-term development projects in search of concrete and measurable results, making capacity building and partnership subordinate to output and numbers. Numbers do count as well as output, but they are the result of another process, i.e. a process of leadership and partnership in which human
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qualities and the quality of being human itself are learned and trained. If these are exercised, efficiency and output are ‘re-sulting’ – a word which is derived from the Latin word ‘resultare’, meaning ‘(suddenly) jumping forward’.
10 Conclusion We have told the story of The Ubuntu Company. We have put it within the framework of the debate on intercultural management and technology development. We have shown how The Ubuntu Company creates the bridge between traditional and modern values by means of a hybrid form of management. Such a form of management can function as a model for other bottom of the pyramid initiatives. It creates a middle way between power distance and equality, collectivism and individualism, and a Family model and Eiffel Tower management model. All of this sounds like a model, which can be easily replicated on a larger scale. But can commitment, partnership, servant leadership and the inspiration behind it be replicated just like that? Such key factors in the process mean, that the model of The Ubuntu Company cannot be replicated just like steps in a blueprint. The person who is the leader and in dialogue is involved himself in the process and part of the process. He or she can make mistakes, admit them and learn from them, start anew, be disappointed and yet hold on, etc., all as an effort towards moral and social progress. The process (the model) cannot do without personal inspiration and a real effort in communication and commitment. But exactly in that sense The Ubuntu Company may be a paradigmatic case.
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Stackhouse, M.L. (1984) Creeds, Society and Human Rights, Study in Three Cultures. Grand Rapids, MI: Eerdmans. Trompenaars, F. and Hampden-Turner, C. (1999) Riding the Waves of Culture. London: Brealey. van Slageren, J. (2009) Influences juives en Afrique. Paris: Karthala.
