Transcript Slide 1

How to Develop
Global Leadership in
non-Western Regions?
The Dream Team
Objective of Presentation
To appreciate the importance of the Global
leadership as one of the key issues for HRD
practitioners.
To understand the characteristics and
competencies of Global leader.
To understand the methodologies for developing
the global leader.
To present a practical case study of global
leadership development in non-Western region
country.
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Content
 Introduction
 Global Leadership Competencies
 How to Develop the Global Leader?
 Case Study: Global Leadership
Development in non-Western region
 Conclusion and Implication for HRD
 Q&A
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Who is the Global Leader in your mind?
http://www.youtube.com/watch?v=-4lko1LuJ2o&feature=fvw
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Content
 Introduction
 Global Leadership Competencies
 How to Develop the Global Leader?
 Case Study: Global Leadership
Development in non-Western region
 Conclusion and Implication for HRD
 Q&A
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What is Global Leadership?
 A combination and expansion of two basic roles
of manager and leader (Kets de Vres and
Florent-Treacy, 2002).
Process of influencing the thinking, attitudes
and behaviors of a global community to work
together synergistically towards a global vision
and common goals (Osland et al, 2006).
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Who is Global Leader?
“Global leader as anyone having a global
responsibility over any business or activity
and global leaders can be found also in
lower levels of the organisation.”
(Jokinsen, 2003)
“ Global leaders need to understand the
Worldwide business environment from a
global perspective, finding a balance
between the simultaneous demands of
global integration and national
responsiveness.”
(Branson et al, 2003)
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Why Global Leaders are needed?
From the files of Jack Welch
“ The idea of company
being global is nonsense. Businesses are
global, not companies”
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Why Global Leaders are needed?
 The acceleration of
globalization caused several
companies become more
globalized, complex and
cultural diverse.
 There is the growing demand
of new paradigms of
leadership that need to adapt
in response to the global
economy.
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Why Global Leaders are needed? (cont.)
 85% of 500 Fortune companies express that there is a
shortage for global leaders who must guide their
organizations in creating global stakeholder value
(Gregersen et al 1998; Javidan et al 2006
 Some experts have argued that most U.S. companies are
not positioned to implement global strategies due to a
lack of global leadership capabilities
 Therefore, it is critical for organisation to develop the
global leadership capability to remain competitiveness
and prepare for tomorrow's global challenges.
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Key findings about Global Leadership
 GLOBE Project, the research in over 60 countries with
150 academic researchers involved, concludes that
global leadership models vary across the countries
(House et al, 2002 )
 The global leadership is quite different from the domestic
leadership because there are the differences in attitudes,
values and beliefs of manager in the country of origin.
 In other words, leaders operating in different countries
will be facing drastically different challenges and
requirements.
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Content
 Introduction
 Global Leadership Competencies
 How to Develop the Global Leader?
 Case Study: Global Leadership
Development in non-Western region
 Conclusion and Implication for HRD
 Q&A
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Global Leadership Competencies
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Global Leadership Competencies
 Communication Skills “ Language is the key for the
whole situation”
 Motivation to learn “Willingness to learn, Understand
difference between people”
 Flexibility “ Global leader are force to deal with
different business models in different countries”
 Open Mindedness “Always listen and absorb ideas
and opinions”
 Respect for others “Respect of people in different
social levels”
 Sensitivity “Doing it in the global world requires a
huge shot of patience, understand the barriers,
different economics, languages and cultures”
(Bueno. C.M. and Tubbs. S.L., 2004)
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Global Leadership Competencies
Global
Competencies
Inventory
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Mendenhall, M. E., et.al. (2008).
Content
 Introduction
 Global Leadership Competencies
 How to Develop the Global Leader?
 Case Study: Global Leadership
Development in non-Western region
 Conclusion and Implication for HRD
 Q&A
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How to develop global leaders?
 Methods for developing global leader
 Sample of developing global leader
 Global leadership training analysis (CIPD)
 Findings in Global Leadership Training
 Analysis and Implication
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Methods for Global Leadership Development
Identification of
Global
leadership
model
Cross-cultural
training,
Study resources
(Online/Distance
learning).
Building diverse
team in the
organisation,
Short-term or
long-term
International
assignment,
Networking
Career
Development,
Coaching/
Mentoring,
Evaluation and
Feedback,
Recruitment and
Selection,
Performance and
Reward
Management
(CIPD: 2010)
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Global Leadership Training Analysis
Name
of
orgs
Type of
orgs
Identific
ation
UN
TNC.
Internati
onal
Develop
ment
●
Sieme
ns
German
MNC.
Manufac
turing
●
LVMH
French
MNC.
Fashion/
Retailing
●
PwC
British
TNC.
Accounti
ng
Consulti
ng
HSBC
Hong
Kong
originat
ed MNC.
Banking
Shortterm
Inter’l
Assignm
ent
Longterm
Inter’l
Assignm
ent
Diverse
Team
Building
●
CCT /
Cultural
study
Career
Develop
ment
●
●
Netwo
r-king
Evaluatio
n and
Feedback
Perfor
mance
/
Rewar
d
Mgmt
●
●
Selectio
n
●
●
●
●
●
Studying
Resources
Reporting
●
assessmen
t/360
●
●
●
Long-term
purpose
●
●
●
●
(expected
to have)
●
●
●
●
●
●
●
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(CIPD: 2010)
Key findings from Global Leadership Training Analysis
Area of problems and improvement needed:
 Less diversity at HSBC
 Systematic training and German culture is still dominant
in Siemens’s training
 Compromise in selection
 Networking should be focused on more
Limitation:
 CCT and international assignments are conducted at
the same time? (Less information)
 HQs of these MNCs are still based in the West.
 Candidates might expect western style leadership more
than culturally-adjusted one
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CASE STUDY
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Case Study: Avery Dennison
 The Avery Dennison grew from a collection of
autonomous international businesses to a more
integrated global corporation, the demands on leaders
called for new capabilities.
 Several years of effort and a new leadership model led
to an integrated, competency-driven leadership
development system, supported by powerful tools and
processes-and hard-earned wisdom about how to grow
global leaders.
 The company draws talent from around the world,
manages the talent pool as a global asset, and gives
managers global experiences and responsibilities to help
them develop the skills needed to become global leaders.
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Case Study: Avery Dennison
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Case Study: Nokia
 Started as a Finnish company in 1865 with the
manufacturing of paper, rubber and cables and moved to
the mobile phones business in 1968.
 Transformed itself from a provincial organisation into a
global organisation with only a small part of its activities
presently in its country of origin.
 Nokia approach: Global leadership is key among the
members of the board.
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NOKIA’S Global Leadership Techniques
 Best-practice Development Adaptation
 Every six months, up to 400 people are handpicked
from across the company and divided into teams.
 The teams prepare a report and presentation for the
executive board.
 Information from these reports is incorporated into
what Nokia call its “strategy road maps”, which are
then shared with key employees.
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NOKIA’S Global Leadership Techniques
 Action Learning
Through COMPASS (a global cross-cultural program
to develop leadership, managerial competence to
improve employees understanding of Nokia values &
cultural context.)
 On-the job training assignment
 Company learning place intranet
 Coaching
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Case Study in non-western region: State Grid in China
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Background of State Grid
•State grid is firstly a state owned company by China
government and China communist party, it is the largest
electric power transmission and distribution company in China
and in the world.
•It is Officer Partner of 2008 Beijing Olympic and Global Partner
of Expo 2010 Shanghai.
•It does not only have its subsidiaries for Northern China,
Northwestern China, Eastern China, Middle China and
Northwestern China, but also has partnership with Sri Lanka,
Mongolia, Russia and Philippines.
•It brings electricity for more than 10 billion people in China. And
also from the recent report, the operating income is up to 120.4
Billion USD and net income 14.4 Billion.
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Becoming a Global Corporation
• In China, it is the only one which can achieve the permission to
operation network of electricity. Therefore, it could achieve enough
financial support for its operations.
• It has its own research centre as a strong backup, the simulation lab
it has is the most advanced one in Asia.
• It has had a few branches in some developing country in Asia.
For example, State Grid has been working with Russia for HVDC
project for two years, and also 35.5 billion of USD has been spent
on buying the permission for the operation of electric network from
Philippians state grid .
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Becoming a Global Corporation
Excellence
• High power distance
• Strongly controlled by Communist party.
• Support promotion of high position employees
Shortcoming
• Less employee are involved in decisions making
• Some leaders do not know the business at all
• The recruitment of senior managers over emphasises candidates’
social network, rather than personal competences.
• Employees are expected to only follow the order from the leaders.
• Generally, employees will get promotion automatically, rather than
based on your performance.
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Leadership development
•
Training programs have been launched at whole organizational level, in order to
facilitate leaders’ personal development. The training covers from line managers
to senior managers, the content of program includes how to train them making a
decision effectively, helping others employees get involved in policy making.
•
The recruitment for senior position has been strictly regulated, the candidates
must be those who have related high education background and experience of
working in this or similar area.
•
SGCC made best use of global resources to foster talents. An international-wide
recruitment advertisement was publicized for positions of senior managers.
•
Most senior manager in Beijing and overseas branches have been sent to
visited Siemens and received 2-week training there. The training involved the
corporation strategies, financial management, human resources and
comprehensive management of corporation
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Achievement
Through a series of leadership development for managers of
State Grid, not only the line managers, but also the senior
managers improved their skills useful to be global leaders.
State Grid is in the process to become a successful Global
Corporation due to taking its leadership development
The development of leadership also increase the financial
performance. By the end of 2005, SGCC accumulated a total
asset of RMB1176.7 billion yuan with a debt-asset ratio of
61.96%.
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Consideration for Developing Global Leader
 sdddd
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Limitation for Global Leadership Study
 Only one example from non-Western regions
 Difficult to collect data from non-Western companies
 Different recognition of importance of global leadership
 Structure and resources of the company also matters
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Conclusion
 The model of global leadership are vary across the countries.
This is mainly due to the difference of leadership styles, culture,
leaders’ attitudes and their beliefs in each countries.
 The practical methods of global leadership development are
identification of global leadership model, selection and an
international assignment.
 It was found that one of the key success factors of global
leadership development is how organisations selected and
customised the different techniques that fit with an organisation.
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Reference
 Ajarimah, A. A. (2001) ‘Major Challenges of Global Leadership in the
twenty-first century’, Human Resource Development International, vol.
4, no. 1, pp. 9-19.
 Bueno, C.M. & Tubbs, S.L. (2004) ‘Identifying Global Leadership
Competencies: An Exploratory Study’, Journal of American Academy
of Business, vol. 5, pp. 80-87.
 Mendenhall, M. E., et.al. (2008) ‘Specification of the Content Domain
of the Global Competencies Inventory (GCI)’, The Kozai Working
Paper Series, vol. 1, no.1, pp.2.
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Reference (cont.)
 Gregersen, H.B. et.al (1998) ‘Developing Leaders for the Global
Frontier’, Sloan Management Review, vol. 40, pp. 21-31.
 Schuler, T. (2007) ‘Building Global Leadership at Avery Dennison’,
Global Business and Organizational Excellence , vol. 10, pp. 6-17.
 Wah, L. (1999) ‘Global leader of the future’, Management Review,
vol. 88, no. 9, pp. 9.
 Jokinen, T. (2005) ‘Global leadership competencies: a review and
discussion’, Journal of European Industrial Training, vol. 29, pp. 199-
126.
 Goldsmith. M. et.al (2000) ‘New competencies for tomorrow's global
leader’, CMA Management, vol. 73, no.10, pp. 20-24
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Reference (cont.)
 Gratton L and Ghoshal Sumantra (2005) Beyond best practice. MH
Sloan Management Review Vol 46 no 3
 Kets De Vres F. R. and Florentt- Treacy E. Global Leadership from A-Z:
Creating High Commitment Organizations. Vol 30, no 4 pp 295-309
 Ropponen T. The Nokia Story of using action learning’, Action Learning:
Research and Practice, 5:2, 161-165
 Nokia Worldwide (2007) Professional and Personal Growth.
http://www.nokia.com
 Jokinen T. (2003) Global Leadership Competencies: A review and
discussion: Journal Of European Industrial Training. Vol 29, issue 3 pp
119-216
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