leading across new borders
TRANSCRIPT
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“Global HQ keeps slowing us down; they just don’t understand how China works.”
Alan, an expatriatebased in China, comments:
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We need more flexibility on the ground and more decision-making power.
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For example, we had an overstock of air purifiers
in the Shanghai warehouse that we
needed to movequickly in Q3.
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My local team came up with a solution:a regional sales promotion.
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It takes three weeks just to get thediscount application for this promotion
signed by the global team.
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Halfway through the approval process, the entire region was hit with
serious air pollution—and suddenly everyone needed air purifiers.
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Within one week, we sold our entire inventory and the warehouses were
completely out of stock. © Aperian Global
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This is what I meanby needing more
flexibility. When we tried to reverse the discount application and restock the air purifiers, the global
supply team asked for a three-month lead time to fit the global planning process!
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How can we compete in this market with a processes that take so long? Local competitors don’t have to wait and don’t face such a rigid process.
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They would just call their suppliers that day, and work non-
stop to make 20,000 new filters in two
weeks. This market is constantly changing; and only the flexible
survive.
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But the global team keeps pushing back, insisting more lead time is needed. They don’t realize these procedures can make business impossible here.
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Alan has a dilemma that many global leaders face today:
How to successfully navigate the
competing demandsof both fast- and
slow-growth markets.
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What does Alan need to do to increase his chance of success? What can organizations
do to ensure his success?
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Alan’s experience highlightsa new global paradigm.
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The world’s economic center of gravity is shifting at a rapid pace - huge emerging
economies have already emerged. © Aperian Global
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Current estimates indicate that by 2050, China, the U.S., and
India will be the world’s top three economies; other
locations in Asia, the Middle East, South America, and Africa
continue to grow rapidly.
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The shifting of the world’s economic center has vast implications for almost everyone, particularly those who have been at the top and at the bottom of the
global economic order.© Aperian Global
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In order tosucceed in this
new global paradigm,
leaders and organizations
require new skills.
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Global leaders must approach familiar tasks in new ways and lead across geographical,
cultural, and mental borders.
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Considering this shifting center,
what does Alan needto understand to be
more successful? What does he need to
explain to others about his global market?
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Fast-Changing Local Market Realities
Need for Agility and Flexibility to Compete and Grab Opportunities
Balance Local Demands with Mature Market Priorities for Quality/Processes/Policies
Promote Understanding of Different Planning/Processes/Timelines Across Fast-Growth and Mature Market Locations
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Fast-Growth Markets Slow-Growth MarketsSociety Younger population, rural to
urban migration, widespread corruption
Aging population, immigration pressures, democratic governance,
rule of law
Economy Dynamic marketplace with many opportunities, fast-moving
competition, newer brands and companies starting to globalize,
government intervention a wildcard, unforeseen risks
Efficiency and cost-cutting, targeted investments, process and quality focus, established MNCs
and paths for entrepreneurs
Career Rapid promotions and compensation increases,
retention and development challenges, job hopping
Specialized professional education, slow career development paths, expensive workforce and labor
unions
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What Organizations Can Do
Ensure key growth markets: Have Strong Leadership Have Influence in Global Decision-Making Are Represented by Leaders with Deep Understanding of BOTH Local
Market and Global Priorities Have Leaders Who are Connected to a Strong Global Network
Ensure HQ and Mature Markets: Have High Visibility and Strong Communication with Key Growth
Markets Have Leaders with Global Mindset and Global Experience Proactively Develop Leaders from Key Growth Markets Create Rotation Programs to Increase multi-directional knowledge
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What Leaders, like Alan, Can Do
Proactively communicate with global stakeholders to create solutions which bridge fast-growth and mature market needs.
Invest in leadership development and succession planning to increase voice and visibility of local leaders in global decision-making.
Build understanding of local market conditions and provide unique insights to global decision makers.
Increase understanding of global or HQ priorities in order to create synergistic solutions and truly influence.
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As the authors of Leading Across New Borders, we wanted to provide a roadmap for individuals
like Alan to navigate the new leadership paradigm, helping leaders expand their skillsets and
create forward momentum.
Ernest Gundling Christie Caldwell Karen Cvitkovich
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Crossing Unfamiliar
Boundaries
Adapting to a Globalized Home
Challenging Outdated Mental
Models
Global Leaders have to traversenew borders in several ways
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Leading Across New Borders empowers leaders with the skills and mindset needed to lead effectively in today’s complex multinational business environment.
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Other topics covered in the book include: Who “Global Talent” Is, What People Want, and What They
Need to Learn When Cultural Awareness Is Not Enough Why Matrix Teams Fail and How to Get Better Results Inclusive Leadership for Competitive Advantage The Real Work Needed to Bring People Together and Make
Any Deal Worthwhile Agility to Innovate on a Global Scale Conscious Choices to Ensure a Sustainable Future Integrating Your Own Heritage, Present Awareness, and a
Vision for the Future
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Leading Across New Borders explores new imperatives that will help leaders and organizations better understand and succeed across a shifting cultural and economic landscape. Whether your organization’s top talent is leading an entire organization, a business unit or a geographically dispersed team, the book serves as an important resource for enabling leaders and organizations to navigate a very new world.
Readers will find strategies and tools for:
Developing Global Talent
Running aMatrix Team
LeadingInclusively
Integratingan Acquisition
Building a Truly Global Organization
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Click here for more information about Aperian Global
Click here for more information about Leading Across New Borders
An exploration of the shifting center, with a
roadmap to navigate and succeed.