Topic 2: Global mindset and the global manager

What are the 2 elements of GLM?

1. Cognitive complexity (Differentiation and Integratio) 2. Cosmopolitanism (Openness and Mediation)

What are 6 key elements to having a GM?

1. being open minded- don't accept first impressions 2. integrity- intellectual and ethical matters 3. abstract thinking 4. comfort with diversity - work diff cultures and values systems and appreciate the diverse perspectives they have - under cultural sensitivity 5. interest in history, geography and global phenomena 6. risk taking capability

What did GE do to train the GM?(4 points)

1. recruit abroad 2. sent US managers to master ground rules for working internationally 3. training and development - report findings back to management - 4. GE also have their own uni 2009 certificate in global management

Social Capital

Ability to form connections and bring people together, characterized by intercultural empathy, interpersonal impact, and diplomacy, how we build and utilise a social network,

What is the debate when talking about global managers?

Are they either: leaders who are able to view situations from a variety of perspectives, develop trusting relationships with individuals from different contexts, and identify promising routes to successful collaboration. OR an elite of jet-setters that is often difficult to integrate into the corporate mainstream; or an an international team of big-picture overseers to the exclusion of focused experts.

What do Levy et al. (2007) point out?

GLM has existed in the literature for a while -has been called transnational mentality or multinational mindset

What did Levy et al. (2007) say about synthesis?

Global mindset is a highly complex cognitive structure characterized by an openness to and articulation of multiple cultural and strategic realities on both global and local levels, and the cognitive ability to mediate and integrate across this multiplicity.

What are the GLM competencies? (3)

Intellectual capital, psychological capital, social capital

What is the conclusion?

even though there is still debate about whether there is one universal global manager or multiple types, and there are many definitions, it is clear that there is a type of leadership behaviour that can strive in the globalised economy of today and the future. it must be emphasised that even though coming from a multi-cultural background helps, this can be developed! so more people can adopt this attitude and transform the way we do business.

Draw the snythesis graph (Levy et al., 2007)

for real bro, draw it now.stop daydreaming for god's sake

What did Jose Justino do at J&J?

he made it about people, got everyone to adopt a new mindset and go through change in attitude, got rid of those who could not change, revised HR: a place where people can fully develop their potential. got results, more emphasis on coaching and leadership strucutre -got results : growth in sales by 10%

Intellectual/human Capital

knowledge of the world, facts, data Knowledge of international business and ability to learn characterized by global business savvy, cognitive complexity, and cognitive outlook

What is one definition of GM? (Levy et al., 2007) (3 points)

research either focused on either organisation or individual individual: a.willingness to learn and to adapt, b. ability to understand cultural differences, c. ability to move from one culture to another smoothly

Case study: What happened with Johnson and Johnson?

J&J in Brazil market share fell 1990s as the gov wanted to make competition fairer and opened market to competition -business culture was heavy top-to-bottom hierarchy that discouraged innovation and risk taking "everybody was scared of top management" result: lack of empowerment and no trust -Jose Justino, native Brazilian who had been with company for 25 years -intellectual/human capital: understanding of culture history, geography and different cultures in the world- 25 years of experience in different subsidiaries -psychological capital: risk taking (contrary to old culture!), high level of confidence in vision -social capital: . "He is very charismatic and has the ability to connect with people at all levels. He came to the plant and could talk to anyone."

Psychological Capital

Openness to other cultures and willingness to change, characterized -by passion, -diversity, -adventurousness, -and self-assurance, -our own self-evaluation, resilience, positive motivation, what keeps us going during tough times

What is the difference between organisational and individual global mindset?

Org.: extent to which management encourages and values cultural diversity while simultaneously maintaining strategic thinking Indi: extent to which decision maker possess or encourages global mindset study: Oyvin et al., 2013: small companies internationalise based on the combination of strong global mindset, especially by key decision makers. strong positive correlation: personal background and work experience of key decision maker.

According to Mikhailov (2014), what is positively correlated with the GM?

PLUS: international job experience, living in a foreign country, having a family member from a foreign country NEUTRAL: internationally oriented education (e.g. IB degree)

What did GE CEO Jack Welch say?(paraphrase)

The Jack Welch of the Future cannot be like me. I spent my entire career in the United States. The next head of General Electric will be somebody who spent time in Bombay, in Hong Kong, in Buenos Aires. We have to send our best and brightest overseas and make sure they have training that will allow them to be the global leaders who will make GE flourish in the future

What is cultural perspective?

also called geocentrism, first introduced by Perlmutter, as opposed to ethnocentrism and polycentrism (country only or multiple locations) - the truly global approach to business- no bias to either home or host country in a MNE

What did Bartlett and Goshal (2003) argue?

there is no such things as a universal global manager (e.g. global generalist) ! rather, 3 different types of specialists: 1.business managers 2.country managers 3. functional managers all with different skills and talents - to be successful, one must combine all roles.

Levy et al. (2007) Cosmopolitanism?

•...represents a state of mind that is manifested as an orientation toward the outside, the Other, and which seeks to reconcile the global with the local and mediate between the familiar and the foreign.