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© 2013. Mansour Javidan, Ph.D. all rights reserved.
Dwi Heriyanto B.
Alumni Global Mindset Certification Program
Global Mindset ® is a registered trademark of Thunderbird School of Global Management. All rights reserved.
© 2013. Mansour Javidan, Ph.D. all rights reserved.
© 2013. Mansour Javidan, Ph.D. all rights reserved. © 2013. Mansour Javidan, Ph.D. all rights reserved.
The Major Trends
Between 2000 and 2010:
Globalization and technology had the biggest
impact on corporations
Between 2010 and 2020:
Globalization and technology will have the
biggest impact on corporations
© 2013. Mansour Javidan, Ph.D. all rights reserved. © 2013. Mansour Javidan, Ph.D. all rights reserved.
The Major Trends
Emerging markets increase their global power
70% of the world growth over the next few years will be in Emerging markets.
IMF estimates that the total GDP of emerging markets could overtake that of developed economies by 2014.
The combined purchasing power of the global middle classes is estimated to be around $56 trillion in the next few years. Over 80% will be based in Asia.
Most of the middle class will live in cities. In Asia, $7.5 trillion in investment in infrastructure is needed by 2020.
© 2013. Mansour Javidan, Ph.D. all rights reserved. © 2013. Mansour Javidan, Ph.D. all rights reserved.
Emerging from the Recession . . .
the “Two Speed” Recovery
Source: IMF Global Economic Outlook, July 2012
© 2013. Mansour Javidan, Ph.D. all rights reserved. © 2013. Mansour Javidan, Ph.D. all rights reserved.
The Major Trends
Globalization is speeding up over the next ten
years
80% of companies with over $1 bln in revenues will be
competing in more foreign markets
Over 70% of companies with under $1 bln in revenues
will be competing in more foreign markets
67% of large companies will hire more people in foreign
markets than local markets
35% of large companies will conduct more R&D in
foreign markets than in local markets
© 2013. Mansour Javidan, Ph.D. all rights reserved. © 2013. Mansour Javidan, Ph.D. all rights reserved.
The Major Trends
Between 2010 and 2020:
Boards of directors will become more
international
Managers will become more international
Managers will have more diverse backgrounds
Managers will be required to undergo leadership
training
Workers will have more diverse backgrounds
Workers will become more international
© 2013. Mansour Javidan, Ph.D. all rights reserved. © 2013. Mansour Javidan, Ph.D. all rights reserved.
The Major Trends
Technology will:
Help companies reach new customer segments
Reduce cost and enhance efficiency
Help outsource more non-core functions
Help us use more virtual meetings
Be a main differentiator in our offerings
© 2013. Mansour Javidan, Ph.D. all rights reserved. © 2013. Mansour Javidan, Ph.D. all rights reserved.
The Major Trends
Technological innovation
Mobile commerce will explode
Conservative estimate of mobile commerce by
2015 is $214 billion
In 2010, sales of smartphones outpaced sales of
PCs
Industry boundaries will blur
Social media will rule
© 2013. Mansour Javidan, Ph.D. all rights reserved. © 2013. Mansour Javidan, Ph.D. all rights reserved.
The Major Trends
Cleantech is coming
Source of national competitive advantage (e.g.
Germany, Brazil)
Corporate strategic priorities (Google and Cisco
in home energy management business)
Organizations show more transparency in their
sustainability practices
More sensitivity to climate change and
sustainable cities
© 2013. Mansour Javidan, Ph.D. all rights reserved. © 2013. Mansour Javidan, Ph.D. all rights reserved.
Navigating the VUCA World
Volatility—The nature, speed,
volume, magnitude, and dynamics
of change
Uncertainty—The lack of
predictability of issues and events
Complexity—The confounding of
issues and the chaos that surround
any organization
Ambiguity—The haziness of
reality and the mixed meanings of
conditions
© 2013. Mansour Javidan, Ph.D. all rights reserved. © 2013. Mansour Javidan, Ph.D. all rights reserved.
The Major Trends
Between 2000 and 2010:
Globalization and technology had the biggest
impact on corporations
Between 2010 and 2020:
Globalization and technology will have the
biggest impact on corporations
© 2013. Mansour Javidan, Ph.D. all rights reserved. © 2013. Mansour Javidan, Ph.D. all rights reserved.
Companies will increasingly:
Harness big data, business intelligence
Focus on predictive capability, analytics,
simulations
© 2013. Mansour Javidan, Ph.D. all rights reserved. © 2013. Mansour Javidan, Ph.D. all rights reserved.
Companies will increasingly:
Localize management
Focus on leveraging diversity
Focus on soft skills like communication and
cultural awareness
Build multicultural global virtual teams
Look for talent in emerging markets
© 2013. Mansour Javidan, Ph.D. all rights reserved. 15 Understanding Why Global Mindset is Important
GAME SESSION
© 2013. Mansour Javidan, Ph.D. all rights reserved. 16 Understanding Why Global Mindset is Important
GMI NEEDS ASSESSMENT (SHORT FORM) QUESTION AGREE DISAG
REE
Over the next five years, Telkom Indonesia’s opportunities, in
terms of markets and supplies, are mostly outside of your country.
Over the next five yours, managers at Telkom Indonesia will
increasingly need to work with people from other parts of the
world.
Over the next five years, managers at Telkom Indonesia will
increasingly need to work with direct reports who are located in
different parts of the world.
Telkom Indonesia believes that a key to its sustainable
competitive advantage in the future resides in its capability to
manage cross cultural complexity in its value chain of suppliers,
managers, employees, distributors, and customers better than its
competitors
Influencing people who are different from you is harder than
influencing people who are like you.
© 2013. Mansour Javidan, Ph.D. all rights reserved. 17 Understanding Why Global Mindset is Important
CASE DISCUSSION:
THE CURIOUS CASE OF DAVID AKEY
Why was David frustrated and having such
a hard time?
David did some preparation prior to his
assignment, why wasn’t it sufficient?
Why was David’s experience and
enthusiasm so different than those of his
colleague Mary?
What suggestions would you give David to
improve his experience in China?
What suggestions would you give David to
better interact with his Chinese
colleagues?
© 2013. Mansour Javidan, Ph.D. all rights reserved.
© 2013. Mansour Javidan, Ph.D. all rights reserved. 19 Global Growth
CORPORATIONS’ GLOBAL AMBITIONS
“We also continue to focus
on growing market share
and expanding our
business in key geographic
markets, with a special
emphasis on Brazil,
Russia, India, China, South
Korea, and Mexico.”
William D. Green
Former Chairman &
CEO, Accenture
© 2013. Mansour Javidan, Ph.D. all rights reserved. 20 Global Growth
GLOBAL GROWTH EMPOWERED
US
A
CANADA
UK
AUSTRALIA
JAPAN
KOREA
SAUDI
ARABIA
INDIA INDONESIA
POLAND TURKEY
MEXICO
PHILIPPINES
CHINA
TAIWAN
New Markets
BRAZIL New
Products
Our Current Strategy Our Future Growth
© 2013. Mansour Javidan, Ph.D. all rights reserved. 21 Global Growth
OCTOBER 21, 2011: SEAGATE CORPORATION’S SHARES
CLOSED UP BY 28% BECAUSE…
A. The company announced a new and innovative product
B. The company’s CEO was hailed by Fortune magazine as the most successful global leader in the industry
C. There was a disastrous flood in Thailand
D. The company announced a major share buy back program
© 2013. Mansour Javidan, Ph.D. all rights reserved. 22 Global Growth
LG ELECTRONICS:
• 7 Regions, 47 Countries // 84 subsidiaries, 112 operations
• Around 84,000 executives and employees
China
•Kazakhstan •Russia •Ukraine
•Canada •USA •Mexico
•Austria •Czech Republic •France •Germany •Greece •Hungary •Italy •Latvia •Netherlands •Poland •Portugal •Romania •Spain •Sweden •Turkey •United Kingdom •Australia
•India •Indonesia •Japan •Korea
•Malaysia •Philippines •Singapore •Taiwan •Thailand •Vietnam •Argentina
•Brazil •Chile •Colombia •Panama •Peru
•Egypt •Jordan •Morocco •Nigeria •Saudi Arabia •South Africa •UAE
© 2013. Mansour Javidan, Ph.D. all rights reserved. 23 Global Growth
CHINA’S INVESTMENT GROWTH
In 2010, China made the
fifth largest amount of
foreign direct investment
(FDI) in the world,
surpassing Japan and
U.K. (China Daily, April 27, 2012)
© 2013. Mansour Javidan, Ph.D. all rights reserved. 24 Global Growth
THE WORLD IS GLOBALIZING
In 1990: 3,000 MNC’s were
operating in the world
In 2010: There were 80,000
MNC’s with 800,000 affiliates
2012: There are more than
100,000 MNC’s and 900,000
affiliates with assets valued at
$57 trillion (10x more than 1990) *World Investment Report
World Investment Forum, April 2012, under secretary Robert Hormats
© 2013. Mansour Javidan, Ph.D. all rights reserved. 25 Global Growth
CHALLENGES IN EXPANDING GLOBALLY
Global Executives: Readiness of the business unit/ company to expand
HR/Executive Development Professionals (EDP): Shortage of global leadership talent
Smith, Caver, Saslow, Thomas, “Developing the Global Executive,” 2009.
© 2013. Mansour Javidan, Ph.D. all rights reserved. 26 Global Growth
79% expect high/very high level of complexity over the next five years
60% view the economic environment as more complex, multifaceted, and interconnected
49% feel prepared for the expected level of complexity
2009 IBM SURVEY OF OVER 1,500 CEOS
© 2013. Mansour Javidan, Ph.D. all rights reserved.
© 2013. Mansour Javidan, Ph.D. all rights reserved. 28 Challenges of Global Leadership
THE WORLD MAY BE FLAT, BUT…
It is More Complex
It is More Diverse
It is More
Uncertain
See world air traffic during a 24 hour period in 2009:
http://www.youtube.com/watch?v=z1US_4uf4YE
© 2013. Mansour Javidan, Ph.D. all rights reserved. 29 Challenges of Global Leadership
GLOBAL LEADERS NEED TO MANAGE ACROSS
Diverse cultural systems
Diverse political and institutional systems
Time and geographic distance
© 2013. Mansour Javidan, Ph.D. all rights reserved. 30 Challenges of Global Leadership
A MAJOR CHALLENGE IN ESTABLISHING
OVERSEAS BUSINESS
Survey of 1000 internationally
oriented Chinese companies
found that more than 72% of the
interviewees believe the biggest
difficulties that arise in conducting
business overseas stem from
cultural differences.
Chinese Companies' Outbound Investment and
Operation Survey, The China Council for the Promotion
of International Trade (China Daily, April 27, 2012)
© 2013. Mansour Javidan, Ph.D. all rights reserved. 31 Challenges of Global Leadership
0 10 20 30 40 50 60
Cultural or national conflicts between staff
Inability to understand local culture
Different working styles and office norms
Inability to speak the local language
Resentment of salary differentials
Accusations of arrogance/superiority
Lack of adequate training for expatriates
Inadequate standard of living or quality of life
Lack of respect for new foreign manager
Other
% of Respondents Selecting Each Issue as Presenting the Greatest Difficulties for Expatriate Managers (Respondents selected up to 3)
MAJOR CHALLENGES EXPATRIATES FACE IN ASSIGNMENT SUCCESS
Source: The Economist Intelligence Unit
Limited, 2010.
© 2013. Mansour Javidan, Ph.D. all rights reserved. 32 Challenges of Global Leadership
GLOBAL LEADERS NEED TO:
Influence individuals, groups,
and organizations inside and
outside their firm, representing
diverse cultural/political/
institutional systems under
conditions of rapid change and
high uncertainty
© 2013. Mansour Javidan, Ph.D. all rights reserved.
GLOBAL LEADERS WORST AT INFLUENCE
33 Challenges of Global Leadership
© 2013. Mansour Javidan, Ph.D. all rights reserved. 34 Challenges of Global Leadership
HOW GLOBAL LEADERS SUCCEED
“Decision making in complex environments and ability to read cultural nuances and adapt leadership style accordingly.”
Howard and Wellins, 2008
© 2013. Mansour Javidan, Ph.D. all rights reserved. 35 Challenges of Global Leadership
IMPORTANT KNOWLEDGE AREAS FOR GLOBAL EXECUTIVES
Understanding of government and political issues in key areas
Knowledge of local markets and consumer preferences
Knowledge of local business practices
Smith, Caver, Saslow, Thomas, “Developing the Global Executive,” 2010
© 2013. Mansour Javidan, Ph.D. all rights reserved. 36 Challenges of Global Leadership
HR PRACTICES DIFFER AMONG CULTURES
© 2013. Mansour Javidan, Ph.D. all rights reserved. 37 Challenges of Global Leadership
GLOBAL LEADERSHIP
The “emerging global enterprise is a company that fashions its strategy…in pursuit of a new goal: the integration of production and value delivery worldwide.”
Samuel J. Palmisano Former Chair of the Board, President, and CEO of IBM
© 2013. Mansour Javidan, Ph.D. all rights reserved. 38 Challenges of Global Leadership
INFORMATION ON GLOBAL LEADERSHIP
On October 3, 2013, Amazon.com
listed
13,096 books
on the subject of Global Leadership!
© 2013. Mansour Javidan, Ph.D. all rights reserved. 39 Challenges of Global Leadership
BUT….
In a recent survey of global
leaders:
Over 60% considered their
own preparation in global
leadership as poor or fair
Almost 50% viewed the
support from their own
corporations as poor or fair
© 2013. Mansour Javidan, Ph.D. all rights reserved.
© 2013. Mansour Javidan, Ph.D. all rights reserved. 41 Global Mindset
Global Mindset Quotes
“Global mindset to me means that
the individual has a global passport, but in their head.”
“It’s the ability to understand the similarities and
differences among cultures and their
reasons.”
“I think it’s a natural curiosity
to learn more about other cultures.”
“Rather than being frustrated and
intimidated by the differences, enjoying
them and seeking them out because you find them fascinating.”
“Being comfortable with being
uncomfortable in uncomfortable environments.”
© 2013. Mansour Javidan, Ph.D. all rights reserved. 42 Global Mindset
Individual attributes that
help influence
individuals, groups, and
organizations that are
unlike the leader’s.
GLOBAL MINDSET DEFINED
© 2013. Mansour Javidan, Ph.D. all rights reserved. 43 Global Mindset
MOST IMPORTANT SKILLS
FOR GLOBAL EXECUTIVES
Senior Executives:
Ability to influence people
from other cultures
Smith, Caver, Saslow, Thomas, “Developing the Global Executive,” 2010.
© 2013. Mansour Javidan, Ph.D. all rights reserved. 44 Global Mindset
A GLOBAL MINDSET
“To succeed in this complex business environment, leaders will need to adopt a set of characteristics and traits that enables them to move fluidly across different cultures.”
James S. Turley, Former Chairman and CEO, Ernst & Young, “Fast Forward: Strategies for Success in Tomorrow’s Hot New Markets.”
© 2013. Mansour Javidan, Ph.D. all rights reserved. 45 Global Mindset
GLOBAL MINDSET EXAMPLE
Gerald Schafer is a Swiss national who has never really lived in Switzerland.
He was born in Budapest .
His parents are Swiss and Hungarian . Mr. Schafer grew up in Africa and South America and
studied in the United States .
His wife is Brazilian .
At home, he speaks Portuguese along with Spanish, French, German, English and Hungarian.
© 2013. Mansour Javidan, Ph.D. all rights reserved. 46 Global Mindset
Individuals who are
capable of perceiving, analyzing, and
decoding the global operating environment
Individuals who possess the
behavioral flexibility and discipline to act
appropriately
Individuals who can accurately identify
effective managerial action in the global
operating environment
Global Leaders who are effective in influencing people from
different socio-
cultural systems
Corporation’s ambition to
be successful in global markets
What is the game?
What are the rules?
How do we win?
Beh
avio
ral
Rep
ert
oir
e
Individuals Who Have a Global
Mindset
Intellectual Capital
Psychological
Capital
Social Capital
Beechler, S. ,and Javidan, M. (2007). “Leading with a Global Mindset.” In Javidan, M., Hitt, M. A., and Steers, R. M. (eds.), 2007, Advances in International Management, Vol. 19: The Global
Mindset. Elsevier.
GLOBAL MINDSET AND
EFFECTIVE GLOBAL LEADERSHIP
© 2013. Mansour Javidan, Ph.D. all rights reserved.
GLOBAL MINDSET MODEL
© 2013. Mansour Javidan, Ph.D. all rights reserved. © 2013. Mansour Javidan, Ph.D. all rights reserved.
GLOBAL INTELLECTUAL CAPITAL
48
© 2013. Mansour Javidan, Ph.D. all rights reserved. © 2013. Mansour Javidan, Ph.D. all rights reserved.
GLOBAL PSYCHOLOGICAL CAPITAL
49
© 2013. Mansour Javidan, Ph.D. all rights reserved. © 2013. Mansour Javidan, Ph.D. all rights reserved.
GLOBAL SOCIAL CAPITAL
50
© 2013. Mansour Javidan, Ph.D. all rights reserved. 51 GMI Validation Research and Demographic Findings
DEVELOPING YOUR GLOBAL MINDSET
• Available in print and
electronically
• Specific development
suggestions for all 35
capabilities of Global Mindset
• Relevant resources at your
fingertips
• 35 engaging narratives of Global
Mindset in action
• 7 case studies specific to Global
Mindset capabilities
• www.developingglobalmindset.c
om
© 2013. Mansour Javidan, Ph.D. all rights reserved. 52 GMI Validation Research and Demographic Findings
DEVELOPING YOUR GLOBAL MINDSET
BOOK WEB SITE
www.developingglobalmindset.
com
© 2013. Mansour Javidan, Ph.D. all rights reserved. © 2013. Mansour Javidan, Ph.D. all rights reserved.
NGMI WEB SITE
INCLUDING TECHNICAL REPORT
www.globalmindset.com
Provides in-depth information and
statistics for
Confirmatory factor analysis
Internal reliability
External validity
GMI Validation Research and Demographic Findings 53
© 2013. Mansour Javidan, Ph.D. all rights reserved. © 2013. Mansour Javidan, Ph.D. all rights reserved.
How Telkom Develop GMI ?
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