GLOBAL

1. GLOBAL

2. How to Develop Global Leadership in non-Western Regions? The Dream Team

3. 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.

4. 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

5. Who is the Global Leader in your mind? http://www.youtube.com/watch?v=-4lko1LuJ2o&feature=fvw

6. 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

7. 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).

8. 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)

9. Why Global Leaders are needed? “ The idea of company being global is non- sense. Businesses are global, not companies” From the files of Jack Welch

10. 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.

11. 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.

12. 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.

13. 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

14. Global Leadership Competencies

15. 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)

16. Global Leadership Competencies Global Competencies Inventory Mendenhall, M. E., et.al. (2008).

17. 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

18. 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

19. Methods for Global Leadership Development (CIPD: 2010)

20. Global Leadership Training Analysis (CIPD: 2010)

21. 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

22. CASE STUDY

23. 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.

24. Case Study: Avery Dennison

25. 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.

26. 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.

27. 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

28. Case Study in non-western region: StateGrid in China

29. 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 alsofrom the recent report, the operating income is up to 120.4 BillionUSD and net income 14.4 Billion.

30. 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 .

31. 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.

32. 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

33. 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%.

34. Consideration for Developing Global Leader • sdddd

35. 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

36. 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.

37. 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.

38. 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

39. Reference (cont.) • Gratton L and GhoshalSumantra (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