Leading Michelin

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Olivier Chalon, the lead manager for a North American division of Michelin, had become an unproductive leader after first arriving to Michelin in 2004. He had already been working for the company in France since 2002 and spoke fluent English. His difficulties in managing and leading in North America come from a dissimilarity in cultures and values that was overlooked by him and his employees.
The first problem was that Chalon, who originally comes from France, has a deep rooted values in business. French business often run like a monarchy, from the top down. The boss-subordinate relationship is very formal, and gives it a strong power distance. (Platt, 2003, p. 205) He was the superior; so he was the monarch and his employees should address him as such. This is different in North America where most employees call their superior by their first name. As Hofstede explains further, Americans have a smaller power distance and superiors consider subordinates to be “people like me.” (1998, p. 46) Proper addressing of people and language is very important to the French people beca...

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