GLOBAL LEADERSHIP

Learning Objectives
To Understand: The link between globalization and global leadership Comparative leadership Expert thinking in GLs Ways to develop global leadership in yourself and others

THE GLOBAL CONTEXT

ECONOMIC FRONT International megamergers Rise of regional economic power Privatization of government-owned corporations Expanding economic integration of Europe Chinas growing economy and markets SOCIAL FRONT Loss of national identities Ethnic strife Increasing conflicts between haves and have nots Fundamentalist Islamic terrorists Growing backlash against U.S. influence and culture Demographic shifts due to rapidly aging populations and AIDS Escalating concern over environmental degradation

GLOBAL MINDSET
A local leader can be a global leader, sometimes even more global than colleagues who are working or have been working in a country other than their own. A global organization will not function well as a global organization unless a lot of local people in that organization, wherever they are, think global, seeing the big picture beyond the local picture a secretary or a person scheduling production. These are people who make things work across national border lines, providing an organizational glue which helps to keep the pieces together behind the global heroes who make public statements or sign important contracts. Arne Olsson, Senior HR VP, ABB

Source of Culture

There are many kinds of wildernessand each forces on people a different set of adaptations and creates a different pattern of life, custom, and belief. These patterns we call culture.

Wallace Stegner

Comparative International Leadership

Asian leaders are subdued because displaying emotion is viewed as a lack of self-control, a weakness.

UNIVERSAL POSITIVE LEADER ATTRIBUTES

Decisive Informed Administratively skilled Just Effective Bargainer Win-win problem solver Plans ahead Honest Dynamic Coordinator Team builder Dependable Excellence oriented Intelligent

Source: GLOBE Project

UNIVERSAL NEGATIVE LEADER ATTRIBUTES

Ruthless Asocial Irritable Loner
Source: GLOBE Project

Egocentric Non-explicit Non-cooperative Dictatorial

CULTURALLY CONTINGENT LEADER ATTRIBUTES

Enthusiastic Risk taking Ambitious Self-effacing Unique Self-sacrificial Sincere Sensitive Compassionate Willful

Source: GLOBE Project

GLOBAL LEADERSHIP DEFINED

The process of influencing the thinking, attitudes, and behaviors of a global community to work together synergistically toward a common vision and common goals.

Organizational capacity to draw out the necessary expertise and influence when and where it is needed.

The Jack Welch of the future cannot be like me. I spent my entire career in the United States. The next head of General Electric will be somebody who spent time in Bombay, in Hong Kong, in Buenos Aires. We have to send our best and brightest overseas and made sure they have the training that will allow them to be the global leaders who will make GE flourish in the future. Jack Welch

Global vs. Domestic Leadership

Differences in terms of degree:
Connectedness and interdependence Boundary Spanning Complexity and ambiguity Building Learning Environments/Diverse Communities and Teams Ethical challenges Tensions/Paradoxes Pattern Recognition

Global vs. Domestic Leadership:

Differences in terms of kind:
Living and working 24-7-365 in an international context can be a transformational experience resulting in new mental models

WHY IS GLOBAL LEADERSHIP IMPORTANT?

U.S. Fortune 500 survey results:
85 percent of the firms do not have an adequate number of global leaders 67 percent of existing leaders need additional global skills and knowledge
(Gregersen, Morrison & Black, 1998)

Global mindset is crucial for successfully managing transnational corporations

(Bartlett & Ghoshal, 1992)

Global Leadership Competencies

Envisioning * Inspiring * Articulating a tangible vision/values/strategy * Global Business Savvy * Global Organizational Savvy * Global Networking * Business Acumen * Total Organizational Astuteness * Results-Orientation * Motivating Employees * Establishing Close Personal Relationships * Empowering, Influencing * Cross-Cultural Communication * Ability to Emotionally Connect with Others * Negotiation Expertise * Conflict Management * Curiosity, Inquisitiveness * Continual Learner * Learning Orientation * Accountability, Integrity * Managing Cross-Cultural Ethics * Courage * Commitment * Ability to Instill Values * Maturity * Hardiness * Balancing Global vs. Local Tensions * Orientation towards Stakeholders * Strong Customer Orientation * Environmental Sensemaking * Global Mindset * Improvisation * Thinking Agility * Pattern Recognition * Cognitive Complexity * Cosmopolitanism * Managing Uncertainty * Entrepreneurial Spirit * Change Agentry * Catalyst for Strategic Change * Catalyst for Cultural Change * Creating Learning Systems * Community Building * Building Organizational Networks * Strong Operational Codes * Teambuilding

Global Leadership Dimensions

with attendant Competencies CrossCultural Relationship Skills
Building Relationships XC Communication Skills Ability to Emotionally Connect Inspire, Motivate Others Conflict Management Negotiation Expertise Empowering Others Managing XC Ethical Issues Social Literacy Cultural Literacy

Global Business Expertise

Global Business Savvy Global Organizational Savvy Business Acumen

Global Organizing Expertise

Team Building Community Building Organizational Networking

Traits and Values

Inquisitiveness/Curiosity Continual Learner Accountability Integrity Courage Commitment Hardiness Maturity

Stakeholder Orientation
External Orientation Results-Orientation

Creating Learning Systems

Architecting/designing Global Networking Strong Customer Orientation Business Literacy Change Agentry

Cognitive Orientation
Environmental Sensemaking Global Mindset Thinking Agility Improvisation Pattern Recognition Cognitive Complexity Cosmopolitanism Managing Uncertainty Local vs. Global Paradoxes Behavioral Flexibility

Visioning
Articulating a tangible vision and strategy Envisioning Entrepreneurial Spirit Catalyst for Cultural Change

Results-Orientation
Personal Literacy Tenacity Emotional Intelligence

Catalyst for Strategic Change

Source: Mendenhall & Osland, 2002

The Building Blocks of Global Competency

System Skills
Leading Change & Make Ethical creativity Decisions Span Build Boundaries Community

Interpersonal Skills
Mindful Communication Create & Build Trust Teaming

Attitudes & Orientations

Global Mindset Cognitive Complexity Cosmopolitanism

Threshold Traits Integrity Humility Inquisitiveness Hardiness Global Knowledge

What Effective Global Executives Do

Perceive, analyze, diagnose-decode the situation

Possess the behavioral repertoire and flexibility to act appropriately, then do so

Accurately identify what managerial action would be most effective in the situation

HIRE AND PROMOTE THESE PERSONALITY CHARACTERISTICS

Openness Flexibility Not ethnocentric Integrity Curiosity Hardiness

WAYS TO DEVELOP GLOBAL LEADERSHIP & MINDSET

Hire diverse employees Use cross-border teams Create cross-border action learning projects Short immersion experiences Expatriate assignments Hold meetings and locate business-unit headquarters in foreign locales Foster social networks across cultures Take formal education courses to expand knowledge bases and skills Corporate training programs

WAYS TO DEVELOP GLOBAL LEADERSHIP & MINDSET

Executive coaching Use incentives to reward acquisition of GL competencies Inclusive selection criteria for GL programs to avoid ethnocentrism 360-degree feedback that includes input from foreign organizational members International travel that leverages learning Assessment centers International simulations

Leveraging Repatriate Cadres

Mandatory debriefings when repatriates return to capture their knowledge and insights Mandatory Globalizing Seminars taught by repatriates Inclusion of repatriates in important international business trips and global strategic planning processes Mentoring of future and current expatriates

Leveraging Travel Assignments

Send a clear message that the purpose of the trip is for development purposes, not just for task accomplishment. Assignments should be given to the manager that he or she must complete during the trip. Each of these assignments should relate to developmental purposes and be part of performance evaluation. Pre-trip training should cover the nature of the competencies that will be developed, and include training.

It is the ambiguity of meaning that marks the boundaries of culture the boundaries where ambiguity begins, where managers can no longer be sure of the correctness of their interpretation of what is going on.
Apfelthaler & Karmasin