Leading Across New Borders

Transcription

1 Leading Across New Borders SIETAR Annual Conference October 2015 Ernest Gundling Managing Partner, Aperian Global

2 Aperian Global 1

3 The Shifting Center: Emerging Markets Have Emerged Why This Matters for Organization Development

4 Leading Across New Borders Developing Global Talent Leading Inclusively Running a Matrix Team Integrating an Acquisition Making Ethical Choices Aperian Global 3

5 Leading Across New Borders 2. Global Talent: Beyond Outsourcing 3. Global Mindset: Beyond Culture 4. Global Teams: Beyond Facilitation 5. Global Inclusion: Beyond Race & Gender 2. Global M&A: Beyond Diligence 3. Global Innovation: Beyond Products 4. Global Ethics: Beyond Integrity 5. Leading from Your Own Center Aperian Global 4

6 Demographic Transformation Source: International Monetary Fund (IMF) Aperian Global 5

7 Youth Arc 90% of the world s children under the age of 15 currently live in emerged/ emerging countries Aperian Global 6

8 Global GDP Shift Two billion more people coming by mid-century nearly all of them from outside of the developed world 350+ more emerging market cities by 2030 Almost 80% of world GDP growth between now and 2050 will occur outside of Europe, the United States, and Canada. By 2030 the developing world s middle class alone will be larger than the total populations of Europe, Japan, and the United States combined. Jack A. Goldstone, The New Population Bomb, Foreign Affairs, January/February Aperian Global 7

9 Scope of the New Economies: China 1.4 billion people: 4 x the U.S., 2 x Europe 160 cities with a population over one million (9 in the U.S.) Steel production 8 x the U.S. Produces and consumes nearly half of the world s coal Over a million Chinese now living in Africa World s leading market for many key industries: Laptops, Cell Phones, Automobiles, Solar Power Aperian Global 8

10 Scope of the New Economies: India Population will eventually exceed China 1.6 billion Soon will have one fifth of the world s working age population; 200 more will join the workforce 10 million people are moving each year from the countryside to the city this is likely to be the biggest demographic shift of the 21 st century Will eventually equal the U.S. GDP in purchasing power Already 4 th largest consumer of U.S. crude oil and petroleum Aperian Global 9

11 Aperian Global 10

12 New Landscape for Competition & Cooperation Cisco Hewlett-Packard Ford British Airways BASF Huawei Lenovo Hyundai Emirates SABIC By 2025 almost half of the world s companies with a billion dollars or more in revenue will be headquartered outside of what was previously called the developed world. McKinsey Aperian Global 11

13 Leading Across New Borders Crossing Unfamiliar Boundaries Adapting to a Globalized Home Challenging Outdated Mental Models Outsourcing Culture Facilitation Diversity Due Diligence Innovation Integrity Aperian Global 12

14 Fast-Growth vs. Slow-Growth Markets Society Economy Career Fast-Growth Markets Younger population, rural to urban migration, widespread corruption Dynamic marketplace with many opportunities, fastmoving competition, newer brands and companies starting to globalize, government intervention a wildcard, unforeseen risks Rapid promotions and compensation increases, retention and development challenges, job hopping Slow-Growth Markets Aging population, immigration pressures, democratic governance, rule of law Efficiency and cost-cutting, targeted investments, process and quality focus, established MNCs and paths for entrepreneurs Specialized professional education, slow career development paths, expensive workforce and labor unions Aperian Global 13

15 Leading Across New Borders 2. Global Talent: Beyond Outsourcing 3. Global Mindset: Beyond Culture 4. Global Teams: Beyond Facilitation 5. Global Inclusion: Beyond Race & Gender 2. Global M&A: Beyond Diligence 3. Global Innovation: Beyond Products 4. Global Ethics: Beyond Integrity 5. Leading from Your Own Center Aperian Global 14

16 Allergic to Outsourcing Aperian Global 15

17 Allergic to Outsourcing: Sohail in Hyderabad We used to be in a BPO [business process outsourcing] relationship with the company, but now we are part of an integrated global business services center. The organization takes major decisions based on our input. We are now driving the process, taking on leadership roles to drive excellence across the global organization. Aperian Global 16

18 Ingrid the Banker: Promotion Postponed Aperian Global 17

19 Global Talent Development: Fast-Growth Markets Balancing local and headquarters priorities Delivering a strong point of view Navigating the global matrix Leading across cultures in regional & global teams Aperian Global 18

20 Leading Across New Borders 2. Global Talent: Beyond Outsourcing 3. Global Mindset: Beyond Culture 4. Global Teams: Beyond Facilitation 5. Global Inclusion: Beyond Race & Gender 2. Global M&A: Beyond Diligence 3. Global Innovation: Beyond Products 4. Global Ethics: Beyond Integrity 5. Leading from Your Own Center Aperian Global 19

21 Example: Buying an Oven in Shanghai Aperian Global 20

22 The Intercultural Hammer! Cross-Border Relationships Aperian Global 21

23 GlobeSmart Dimensions You Your Colleague Your goal: To know your own profile as well as that Independent Egalitarianism Risk Direct Task Interdependent Status Restraint Indirect Relationship of your colleague(s) in order to leverage similarities and bridge gaps Remember: Dimensions are on a continuum There is no right or wrong style Profile result is not a predictor of success Aperian Global 22

24 Cultural Dimensions: Using the Hammer Leadership Here s a solution. We can address your issues through an intercultural training program! Diversity & Inclusion Dimensions of Culture! Global Teams Innovation Mergers & Acquisitions Mobility Aperian Global 23

25 Oven Delivery: Possible Causal Factors Factors Influenced by Culture: Task/Relationship; Egalitarianism/Hierarchy Consumer expectations Customer/vendor relationships, holidays Work habits; union rules Additional Considerations: Quality of infrastructure, both online and supply chain (software, networking, warehouse logistics, delivery vans), Proximity to manufacturing facilities Population density; demography (new urban families are just now purchasing ovens in large numbers) Economies of scale, labor costs Purchasing power of the Chinese currency Competitive business model Aperian Global 24

26 Country Profiles: Sample Comparison Aspects of culture that represent a range of work styles in a multicultural work environment Aperian Global 25

27 Individual Profiles: Sample Comparison Aperian Global 26

28 GS Data for Germany / Direct vs. Indirect by Function Aperian Global 27

29 GlobeSmart Data by Age for China / Direct vs. Indirect Aperian Global 28

30 Concentric Circles of Culture Region Country Company Work Team Community Family Aperian Global 29

31 Hi-Touch Approaches to Culture What is cultural and what is not? Monolithic Contradiction Inaccurate Continuity & Change Ahistorical Context Aperian Global 30

32 Aperian Global 31

33 Leading Across New Borders 2. Global Talent: Beyond Outsourcing 3. Global Mindset: Beyond Culture 4. Global Teams: Beyond Facilitation 5. Global Inclusion: Beyond Race & Gender 2. Global M&A: Beyond Diligence 3. Global Innovation: Beyond Products 4. Global Ethics: Beyond Integrity 5. Leading from Your Own Center Aperian Global 32

34 Global, Virtual Teams: Dispersed, Networked, and Diverse Dispersed membership Not physically present together, cross-border Dependent on technology to communicate Networked Departments, functions, organizational units (alliances, partnerships, suppliers) Diverse membership representing different Nationalities, languages, cultural & ethnic backgrounds Generations, genders, learning styles, etc. Aperian Global 33

35 Global Team Facilitation Aperian Global 34

36 Global Teams: Common Best Practices Arrange a face-to-face team meeting or travel to meet team members in person and learn more about them. Provide a big-picture introduction to the team s efforts. Set tightly spaced milestones during the early project stages. Check in with team counterparts frequently. Schedule one-on-one conversations with senior individuals in other locations so that they can raise issues without losing face in front of team members. Build a mutual awareness of cultural differences and implement practices to bridge differing communication styles such as: Asking open-ended rather than yes/no questions. For example, What do you think is a feasible time frame for completing this project? What other priorities do your team members have? Using reflective listening, paraphrasing, and summarizing what others are saying to further draw out team members who show signs of uncertainty or hesitation. Aperian Global 35

37 Choosing Communication Methods High Context Face-to-Face Words Voice Tone Instant Feedback Use of Graphics Non- Verbal Cues Environmental Cues Informal Contact Video Conference Web-based Meeting Telephone & Teleconference Instant Messaging Voice Mail Low Context Shared Access to Documents Aperian Global 36

38 Country Profiles: Sample Comparison Aspects of culture that represent a range of work styles in a multicultural work environment Aperian Global 37

39 Matrix Structures: Competing Priorities Geography Function Individual Needs Business Unit Product Group Competing priorities impact team effectiveness Aperian Global 38

40 Trust Issues: Possible Structural Causes Separate Reporting Relationships Different Customer Demands Trust Issues & Conflict Among Team Members Conflicting Metrics Organizational Structure & Strategy Aperian Global 39

41 Global Teaming Assessment Data More than 2,000 teams 14,000 plus team members One of the largest available sources of data anywhere regarding performance challenges encountered by global teams ( ) The 42-item survey used to collect this data has shown strong psychometric results Aperian Global 40

42 Global Team Effectiveness Model Aperian Global 41

43 Top 5 Weaknesses Survey Question Element 1. The team's reward system encourages cooperation and shared effort among team members. Team Process 2. The team receives the resources and cooperation it needs from other parts of the company. Team Foundations 3. The team has accurate and objective metrics in place to measure the results of its work. Team Process 4. The team has an effective procedure for resolving problems among team members. Conflict Resolution 5. The team effectively combines face-to-face interactions with virtual communication. Virtual Communication Aperian Global 42

44 Major Challenge: Conflict Resolution Problem solving Critical feedback Focus on common objectives Shared sacrifice Constructive disagreement Escalation path Aperian Global 43

45 Major Challenge: Team Process Decision-making Clear tasks and deadlines High priority focus Reward system Metrics Learning process Aperian Global 44

46 Matrix Team Leader Checklist: Six Key Questions 1. Is there executive sponsorship for the team? 2. Have the team and its goals been established with buy-in from key stakeholders in each relevant part of the matrix: geographies, functions, business units, product groups? 3. Are there other key stakeholders (customers, suppliers, different parts of the organization) or resources essential to the team s success? 4. Is it actually possible to establish a shared vision and common objectives for team members? 5. Is there a shared sense of urgency and level of priority among team members? 6. Can metrics and reward systems be aligned to support teamwork? Aperian Global 45

47 Leading Across New Borders 2. Global Talent: Beyond Outsourcing 3. Global Mindset: Beyond Culture 4. Global Teams: Beyond Facilitation 5. Global Inclusion: Beyond Race & Gender 2. Global M&A: Beyond Diligence 3. Global Innovation: Beyond Products 4. Global Ethics: Beyond Integrity 5. Leading from Your Own Center Aperian Global 46

48 Finding Your Own Center Leaders who have found their own center can be trusted to shape the future. (We can help them to do this.) Aperian Global 47