Bill Riley Cultural congruence between Intel and Ireland Culture does make a real difference in the new knowledge-based society. If you look at any society, you have high priests ” the people who control knowledge ” and the people who are controlled. And in some societies , the controllers could be paternally benevolent , or they could be absolute despots, but that was almost an arbitrary factor. The reality was that there was a knowledge-based elite and a knowledge-disenfranchised mass. And I do believe that the cultures that still have this centralist, knowledge-based elite are the ones who are in fact, the most resistant to a culture that drives for the knowledge of every individual. The most important key factor for Intel to select Ireland over seven other European countries as a location for its business expansion in Europe was the availability of skilled young people, their enthusiasm , and can-do attitudes. This has proven vital to the success of Intel Ireland. While Intel culture puts emphasis on teamwork and openness and promotes egalitarianism, its business values foster risk-taking, maintaining innovation, and increasing productivity. Both individual freedom and self-discipline are integrated from the very beginning, which create a challenging and rewarding work environment at Intel. In the new knowledge-based society, people are respected for their knowledge and contribution to the society. And at Intel, a person who has knowledge that makes the difference between the company being successful or not, is a great asset to the organization. Thus, the knowledge must be able to be translated into action, with potentially positive outcome. Knowledge that is solely academic in nature and inwardly focused has no standing within Intel's business environment. As a colonized country prior to 1948, Ireland has an enduring heritage that is traditionally entrenched in the society. Irish people, due to their suspicion of the authorities, tended not to rely on government to solve their individual problems or community issues. Instead they built a strong solidarity among their own countrymen to take on causes for the good at large. Even today, Irish people do not expect government to shape their lives. Individuals take charge to drive their own lives and be responsible for the outcomes . As such, the Irish mentality matches well with Intel's philosophy that people own their own employability. Intel management believes that while working at the company, people become more effective and are able to raise the level of their knowledge and capability to create more independence for themselves . The knowledge-based industries encourage the work ethic for people to act on their own, thereby generating the excitement and energy that are characteristic of this innovative work environment. The U.S. is a very diverse country, not just in the context of ethnicity , but in other aspects as well. In business, each corporation has its own unique culture, a behavioral culture. At Intel, business objectives are communicated at the very beginning and clearly expressed at every level of the organization. The cultural overlay enables them to pull diverging individual behaviors together across diverse communities. Whether Intel people work at one of the U.S. locations, Ireland, or other parts of the world, they perform their duties and complete their tasks within Intel's cultural framework. In essence, geographical locations are unimportant to Intel. With 86,000 employees worldwide, spanning over 45 countries, Intel continually promotes diversity and believes that, as a multinational company, its success hinges on a wide range of perspectives, ideas, and experiences from its varied work force. Thus, in a knowledge-based society, knowledge in action is what shapes the world. To put knowledge into action requires a cultural context. You have to be engaged in something. You have to want to do something, to deliver something, to achieve a goal. And, therefore, what pulls people together is something that they can see. If it is in business, does this company have a goal? Is it going to drive things? And therefore can I get excited about bringing my knowledge to bear, knowing that it's something much bigger and more fundamental than that which I am trying to shape? This is really what the business culture of the knowledge-based industry is trying to do. It is trying to create the excitement and the energy for people who do have many, many choices. Because it is global it is exciting and many people want to be a part of it. Recently, an increasing number of Irish people, especially college students, have chosen the U.S. as their destination for summer work. Many have contacts and family relatives in the U.S., making them familiar with the American culture. The fact that Irish people also speak English contributes to the congruence of the cultural fit between Intel and the Irish work force. Government's activist role The deepening recession in the early 1980s prompted the IDA to shift its policies from attracting labor- intensive industries to those with high-output growth using the most advanced technologies. At first glance, it may seem inconsistent with the IDA's traditional approach in securing foreign investment to create jobs with the highest possible number, since Ireland had an abundant supply of human capital. Nonetheless, the most technologically advanced firms were generally perceived to be the most successful in their industries. As a result, the domino effect of economic gains would have great downstream impact throughout the region, most notably in services, materials, and indirect job creation. Against this backdrop, the IDA exercised its autonomous authority and leverage to work with various local and regional officials to secure the Intel project, from infrastructure to fast-track planning process, from overcoming politics to financial grants. Intel, on its part, was impressed with Ireland's pro-business attitude, its flexibility, and the ability to quickly change and adapt to the business environment. The Irish government had shown a willingness to learn and understand Intel's business needs, especially in the initial stage of establishing its operation in Ireland. Intel Ireland took almost two-and-a-half years to build and made over $2 billion in initial investment. There was almost a certainty of missed opportunities in the market, especially in the rapidly changing technology industry. Thus, speed, certainty , and the government's flexibility were critical in getting Intel Ireland off the ground. And the IDA has been instrumental in its commitment to assisting multinational companies like Intel in move up the value chain. Intel also enjoys a very transparent relationship with the Irish government, one that is mutually beneficial. Multinationals, regarded as wealth generators to the economy, are also major tax contributors. As revenue grows, so does the tax burden . And to ensure a continual growth for Intel, the government has an open door policy to discuss issues with Intel, such as tax savings. The commissioners are generally forthcoming with advice on tax planning, a prudent step that would eventually be taken by Intel. It is this type of mind-set sympathetic to business that is critical to the success of Intel Ireland. There is a degree of negotiation with the IDA that is usually very positive in trying to understand the nature of the problems that corporations need to overcome , and the things that they can do for you will make a difference. They are a partner as well as someone with whom you can negotiate. The IDA is there to help you become successful, so an arm-wrestling type of negotiation would be counterproductive. |
