D R. K E N RA U C H

GLOBAL MINDSET INVENTORY

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Indiana TechPh.D. in Global Leadership

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INTRODUCTION TO GLOBAL MINDSET

What It Is ?

Why It Matters ?

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QUESTIONS FOR DISCUSSION

• What are your clients’ global ambitions?• What are their needs regarding global leadership?• What issues and challenges are they facing?• How important is global leadership to them?• How important is a talent management system to

your clients? Is it producing what their organizations need?

• How important are global virtual teams to your clients?

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THE WORLD MAY BE FLATTER

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…….HOWEVER

• It is more complex:• Multiple stakeholders• Greater interdependence and interconnection• Fluctuating economic, political, and

social factors• Relentless global competition• Rapid change

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IN A 2009 IBM SURVEY OF OVER 1500 CEO’S:

• 60% view the economic environment as more complex, multifaceted, and interconnected

• 79% expect high/very high level of complexity over the next five years

• 49% feel prepared for the expected level of complexity

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THE WORLD MAY BE FLATTER, BUT

• It is more diverse• The work force• Management systems• Customer needs• Cultural values• Political, economic, and institutional systems

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THE WORLD MAY BE FLATTER, BUT

• It is more uncertain• Raid change and volatility• Higher levels and sources of risk• Chaos• Unknown variables

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IN A 2009 IBM SURVEY OF OVER 1500 CEO’S:

• 69% view the economic environment as more volatile with faster cycles and more risk

• 65% view the economic environment as more uncertain

• 53% view the economic environment as structurally different with sustained change

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GLOBAL LEADERS NEED TO MANAGE ACROSS:

• Diverse cultural systems

• Diverse political and institutional systems

• Time and geographic distance

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SURVEY OF 100 GLOBAL COMPANIES

How often are (national) cultural implications of business decisions

considered in making business plans in your company?

Sometimes or Always80%

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SURVEY OF 100 GLOBAL COMPANIES

How important a role do you believe (national) culture plays in the success

of your business mission?

Important or Very Important95%

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THE CHALLENGE TO GLOBAL LEADERS:

How 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.

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THERE IS MUCH WRITTEN ON GLOBAL LEADERSHIP

On Dec. 31, 2010, Amazon.com was offering 1,127 books with a title containing Global Leadership!

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CORPORATE CHALLENGE

How do we align and leverage the efforts of our employees around the

world who join our company with vastly different life experiences, from

diverse cultures and often dramatically different contexts?

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HOW DO YOU SEE THE WORLD ?LOCALLY OR GLOBALLY ?

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GLOBAL MINDSET PROJECT (GMP)• Define Global Mindset• Identify the antecedents and consequences of Global

Mindset• Develop metrics for measuring Global Mindset• Design scientifically based assessment tools for Global

Mindset• Conduct large-scale studies of executives in large

multinational corporations• Assess Thunderbird’s impact on students’ Global Mindset—

pre- and post-test• Offer a suite of solutions to enhance the Global Mindset of

managers and executives

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THE METHOD FOR DEFINING GLOBAL MINDSET

• Started in late 2004• A group of 8 professors at Thunderbird• Comprehensive review of the existing literature• Interviews with 40 Thunderbird colleagues• Interviews with 217 senior international executives in

over 20 cities in the world• An invitation-only conference with 40 distinguished

scholars• Definition of Global Mindset and the individual

attributes that comprise it

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reviseas needed

education management,org studies

language/x-cult international

relations

training/HR

Review literatures, formulate research framen=8 global scholars

create/refineresearch questions

Obj. #1investigate thenature and relevanceof “globalmindset"

#1sampling plan:interviews, focusgroups w/int’l scholarssr. acad.n-30

#3sampling plan:expert informantconferencen=44

createGlobal Mindset Inventorydraft

#6pilot test:int’l MBA’sn-,207

revise Items to assurepsychometricsoundness

#7pilot test #2int’l managersn/800

The Global Mindset Inventory

analyze data, observations,participant discussions

#2sampling plan:interviews and smallgroup discussionswith internationalmanagers,execs, scholarsn=200

critique internally

categorize perceptions/experiences/observations of “globalmindset”+

focused group discussionsw/participants

-Obj. #2validate construct,revise to state-of-artscholarlyperspective

reviseas needed

drill int’l leaders experiences/insightsre:invid/org gl mindset successes

final ‘reality’ check, including emergentfactors of GI Mindset

feed back toparticipants

validate viaexpert judges

differentiate anddefine “global mindset”

#5generate items re:Intel/Psych/Soc capitaln-100 int’l MBA’s+ psychometricians

collect additional data,consolidate intoemergent themes

reviseas needed

#4sampling plan:interviews w/sr. exec. expertsn=17

identity antecedents, consequences,and applications contingenciesof “global mindset”

Obj. #3validate construct,revise to state-of-artpractitionerperspective

GMIRESEARC

H DESIGN

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DEFINING GLOBAL MINDSET

In-depth interviews with 217 upper middle and senior international

executives in 23 cities in the U.S., China, India, Korea, Taiwan, and

European countries. Each interview took at least 60 minutes; some took

over two hours.

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EXAMPLES OF INTERVIEWEES

• HR Leader, GE Capital, Asia Pacific• Vice President, Human Resources, Asia

Pacific Division, FedEx • President of Asia, Briggs & Stratton

Corporation• General Manager, Colgate Palmolive,

Poland

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GLOBAL MINDSET

• “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.”

• “Being comfortable with being uncomfortable in uncomfortable environments.”

• “Someone with a global mindset enters a new and different situation with many more questions rather than answers, assumptions, and presumptions.”

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GLOBAL MINDSET• “It’s being able to make sense of contrasting

frames of reference and the ability to simultaneously see oneself as American and German.”

• “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.”

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GLOBAL MINDSET

A set of individual attributes that help influence individuals, groups,

organizations, and systems that are unlike the leader’s.

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Quest for Adventure

Self-Assurance

Passion for Diversity

Cosmopolitan Outlook

Cognitive Complexity

Psychological Capital

Global Business Savvy

Interpersonal Impact

Diplomacy

Intercultural Empathy

Social Capital

GLOBAL MINDSET

Intellectual Capital

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Global BusinessSavvy

CosmopolitanOutlook Cognitive Complexity

Knowledge of global industry

Knowledge of global competitive business &marketing strategies

Knowledge of how to transact business & manage

risk in other countries

Knowledge of supplieroptions in other parts

of the world

Knowledge of cultures indifferent parts of

the world

Knowledge of geography,history and important

persons of several countries

Up-to-date knowledge of important world events

Knowledge of economic &political issues, concerns,

hot topics, etc. of majorregions of the world

Ability to grasp complexconcepts quickly

Strong analytical andproblem solving skills

Ability to understand abstract ideas

Ability to take complex issues & explain the main points simply & understandablyIntellectual Capital (IC)

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Psychological Capital (PC)

Self-Assurance

Interest in exploringother parts of the world

Interest in getting to knowpeople from other parts

of the world

Interest in variety

Interest in dealing withchallenging situations

Willingness to test one’s abilities

Energetic

Self-confident

Comfortable in uncomfortable situations

Witty in tough situations

Interest in living in another country

Willingness to take risks

Interest in dealing withunpredictable situations

Passion for Diversity Quest for Adventure

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Social Capital (SC)

Intercultural Empathy Interpersonal Impact Diplomacy

Ability to work well withpeople from other parts

of the world

Ability to understandnon-verbal expression of

people from other cultures

Ability to engage peoplefrom other parts of theworld to work together

Experience in negotiatingcontracts in other cultures

Reputation as a leader

Ease of starting aconversation with a stranger

Ability to integrate diverseperspectives

Ability to listen to whatothers have to say

Willingness to collaborate

Ability to emotionallyconnect to people from

other cultures Strong networks with

people from other culturesand with influential people

Credibility

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