global mindset inventory

© 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.

The Major Trends

Between 2000 and 2010:

Globalization and technology had the biggest

impact on corporations


Globalization and technology will have the

biggest impact on corporations


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.


Emerging from the Recession . . .

the “Two Speed” Recovery

Source: IMF Global Economic Outlook, July 2012


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


The Major Trends


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


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


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


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


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


The Major Trends


Globalization and technology had the biggest

impact on corporations


Globalization and technology will have the

biggest impact on corporations


Companies will increasingly:

Harness big data, business intelligence

Focus on predictive capability, analytics,

simulations


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


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.


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. 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

http://assets.nydailynews.com/polopoly_fs/1.460414!/img/httpImage/image.jpg


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


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


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


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)


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


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.


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. 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




GLOBAL LEADERS NEED TO MANAGE ACROSS

Diverse cultural systems

Diverse political and institutional systems

Time and geographic distance


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)

http://www.whatsonchengdu.com/news_images/4f8fbe9104f9c_oversea branches.jpg


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.


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


GLOBAL LEADERS WORST AT INFLUENCE

33 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


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


HR PRACTICES DIFFER AMONG CULTURES


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


INFORMATION ON GLOBAL LEADERSHIP

On October 3, 2013, Amazon.com

listed

13,096 books

on the subject 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. 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.”


Individual attributes that

help influence

individuals, groups, and

organizations that are

unlike the leader’s.

GLOBAL MINDSET DEFINED


MOST IMPORTANT SKILLS

FOR GLOBAL EXECUTIVES

Senior Executives:

Ability to influence people

from other cultures

Smith, Caver, Saslow, Thomas, “Developing the Global Executive,” 2010.


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.”


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.

http://www.monkeyland.co.za/userfiles/article/news/news13/cheap-calling-to-south-africa-flag.jpg


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


GLOBAL MINDSET MODEL


GLOBAL INTELLECTUAL CAPITAL

48


GLOBAL PSYCHOLOGICAL CAPITAL

49


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

http://www.developingglobalmindset.com/



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

http://www.globalmindset.com/


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