Chapter 2
Thinking Globally

We stand on a precipice, stepping into a new era, a time of enormous change and uncertainty characterized by the emergence of the first truly borderless, interconnected global economy. It's the world's youngest economy, fueled by the spread of free markets and democracy around the world.^[1]

In the past, the ability of an executive leader to think, understand, and work within the global environment was not nearly as important as it is today. This need for a relatively new set of characteristics has been brought to the forefront by the dramatic increases in global trade and integrated global technology, such as e-commerce. This is not confined to leaders who work within the global environment. Domestic, "networked" leaders, those executives who run organizations with multiregional locations across same nation states, will be impacted by the same issues as a "global" leader, yet on a scale that emphasizes state regulations and intrastate laws.

Globalization and the boom in information technology have brought new players, products, and services into business. As long as competition remained largely domestic, standards of quality, price, and service were governed by domestic norms. But global competition imposes such higher global standards of customer service, creativity, and innovation that even companies with no global ambitions are forced to meet to protect their market shares.

In addition to competition, the business environment is characterized by alliances between governments, industries, and companies. The European Union, the North American Free Trade Agreement, and the Association of Southeast Asian Nations are just some of the groupings within which barriers are being dismantled. Companies have formed cross-industry alliances, such as utilities and telecommunications firms, software and hardware, banks and insurance; they are forming ever-larger and more complex groups by merger and acquisition.

Where acquisitions are out of the question, some companies are choosing to form alliances, even with competitors, to offer the customer a special product or service. Translated into the global marketplace, such convergence assumes even greater significance. Links are growing fast, whether among airlines, pharmaceutical firms, automotive companies, or consumer credit groups. The labels of competitors, partner, supplier, and customer are becoming interchangeable. Figure 2.1 illustrates the different levels of convergence.

Figure 2.1. Global convergence. (Model developed by Cathy Greenberg, 1999.)

The goal of global integration—to take advantage of the economies of scale and worldwide learning while still responding to local needs—is becoming more realistic. As globally connected markets become stronger, all leaders, domestic and global, will need to understand the economic, cultural, legal, and political ramifications of globalization, and they will need to act as global citizens^[2] with an expanded field of vision and values.

The Impact of Globalization

As the interdependence between companies from around the world grows, domestic and international politics and the rules of trade are being reformed. For example, recently General Electric was blocked in its attempt to make an acquisition because of antitrust concerns in Europe (even though it had received approval in the United States). Leaders who understand and recognize this fundamental impact of globalization will forge the way to the future. Globalization is inescapable. The Information Age, with its relatively recent and ongoing changes in technology and knowledge distribution, is dissolving the borders and boundaries of countries around the world. For instance, today a designer in Milan may coordinate efforts with producers in China and an ad agency in London on a product that will be sold in Chicago. As a result of these dissolving borders, leaders of domestic organizations find themselves confronting issues comparable to those of leaders of global companies. The national environment, with its diversity of people, cultures, business methods, and leadership styles, has components similar to those of the global environment, such as rapidly developing technology; mergers and acquisitions; competition, partnerships, and alliances; boundary integration; and free trade agreements. To achieve competitive advantage within the expanding business environment, leaders must be capable of understanding and competing across many regions and cultures. Leaders will need to understand what globalization [boundary integration] really means: (1) marketing products in different countries [as well as regions, cities, and states] in many different ways, and (2) changing pricing if necessary.^[3] The obvious case study here is the European Union. With the advent of the Euro as a common currency, price differences for the same products in different countries have become transparent.

In the future, businesses will be set up either as a network of partnering entities under the umbrella of the company's main headquarters or as a system of alliances between companies across many cultures. Either way, companies will be involved in the local communities of different countries and/or national regions, states, and cities with a range of economic situations, political environments, and cultural and business norms. Culture and habits can create a big barrier or be a great advantage.^[4] As such, the successful leader must have a global business understanding, including

1. A financial understanding of the world economy.
2. An understanding of different cultures—for example, the American way or the Japanese way doesn't work in all cultures. It can be very harmful to try to enforce one culture on others.
3. An understanding of the [global/regional] markets, so that they understand how markets play off each other—for example, the leader must understand what kind of effect the price of oil, plastic, iron ore, power, et cetera has on different scales.^[5]

Globalization impacts every area of a company from its customer base, vendors and distributors, and marketing strategy to its alliance networks, partnerships, and competitors. For instance, the price of power in Alabama will impact the competitive status of the customers of the power company. These customers may have to compete with other global suppliers. If the costs to the power company's customers become too high and the customers become noncompetitive, the power company will ultimately lose business (even though they may not directly compete with other global power companies).

Global leaders must be aware of country, national, and intrastate laws and business regulations; social and political events; and government involvement in business. Even time zones have an impact, such that we will be coordinating global strategies on a broader scope.^[6] Cultures and societies have put limitations on what leaders can do: Basic ethics, policies, and regulations preclude certain behaviors within each country. In a global environment those behaviors become hazy because they are guided by different laws, policies, and mechanisms. This complicates matters to a great extent. For example, when the Rolling Stones go on a world tour, they take four immigration attorneys with them, because their rights are different in each country they visit. This fuzziness will help future leaders be more effective if they learn to use it to their advantage: Future leaders must learn how each system fits into the global business network and how to work within and across those systems.

Another factor that makes global thinking a requirement for future leaders is technology. As businesses create global systems, technology is created to support the growth of those systems, and people around the world can communicate easier and cheaper than ever before.

A World of Approaches

In the last 20 years, globalization has radically changed the environment in which business is conducted. Because different countries have different ways of doing business,^[7] a key skill of the global leader of the future is flexibility and the ability to refrain from labeling other perspectives as "right" or "wrong."

Within this growing business environment, there will be many different solutions and approaches to each situation. Each culture, company, and individual will bring a unique communication style and work ethic. Decision making and leadership styles will vary from person to person, from organization to organization, and from culture to culture.

It will be important to first agree on common objectives, then allow the organizations to get the job done in a manner that is necessary for their culture and environment. To make other organizations in different countries conform to one way would not allow a comfortable working environment. Everything cannot be standardized.^[8]

It is hard enough for people of the same culture to communicate and work well together. People from different backgrounds who want to work together have to understand not only personalities, but also their own and others' backgrounds and what shapes their value systems. For instance, until recently, many Westerners who worked in the Middle East had virtually no knowledge of the Koran, even though the Koran is the most important book impacting the culture of the region.

When working with businesses that are physically spread around the world or within different regions of a country, the global leader must understand the different companies' individual needs. Because a diverse range of factors drives companies in different areas, the leader should understand the motivation driving each organization. A company in Brazil may be profit-driven, and a company in China may be employee-driven. Similarly, an organization in eastern Spain, such as in the city of Andalusia, will have a greatly different customer base than the same company in the city of Madrid.

They need to see the interaction between globally different people, business units, et cetera, and see how the input of their decisions impacts the company. They must step out of their country [region] and look at the world to get a better global role and perspective. They should not force their culture's needs and values onto other cultures.^[9]

The global leader will strive to understand the perceptions and motivations and social aspects of the countries within which the business is or would like to be involved. Through research, study, and experience the leader will understand the frame of reference of different cultures and thus be capable of leading across a global divide. He or she must understand the other culture's frame of reference and then influence that culture from its perspective rather than impose his or her own.

Gaining Experience

The global leader of the future will need to have a global perspective with experience. [He or she] should have lived in a different culture and country—and possess language skills. This company has prepared me by shipping me around the world a lot. I attend conferences focusing on our industry on a global basis. I participated last winter in a global, political, economic, symposium put on by Oxford in England. And we have an informal network in the company and I travel to different parts of the organization and basically "keep in touch." This is kind of a continuing development for personal and organizational development.^[10]

Global leaders can gain knowledge and experience through a mixture of long-term foreign postings, short-term assignments in other locations, frequent overseas visits, participation in multicultural projects, and general exposure to people and ideas from different cultural backgrounds through reading, academic courses, professional and personal associations, films, and so on.

A deep awareness of the cultural differences between countries and within regions is necessary for global business success, as is a moderate ability to speak the language; knowledge of the financial system, laws, and regulations; and an understanding of the business practices and cultural norms of the countries within which the company is involved.

[The global leader] should partake in international immersion.^[11] Such experiences benefit the leader not only in the business sense, but also in the sense that they provide the opportunity for him or her to view life from another perspective.

The most gratifying time of my career was when I spent three years in the UK and Hong Kong, because I learned to suspend judgment. I learned that there are no right or wrong answers, just different [answers]. It's what we saw when we made an acquisition this year—there are no right or wrong answers, just different. Leaders need to build on the best of both sides.^[12]

From a business standpoint, there are many reasons that the global leader will need to understand that country and its culture.^[13] For one, understanding is the foundation upon which successful business relationships are built. Without a working knowledge of the ways in which business is conducted in different regions of the world, it is difficult, if not impossible, to break into, much less succeed in, the global market. Humorous examples abound of companies whose slogans designed to be positive and uplifting in one language are actually offensive and insulting in a new language. For another reason, because the average customer varies from place to place, effective marketing and sales depend on knowing and providing for the needs of the customer in each region. The global leader with experience in different cultures will have a great advantage in working with diverse peoples, in knowing which products and services will sell in which regions, and in determining how to successfully market those products and services.

Marketing in different countries can be quite challenging. Add that to the fact that there are sometimes many different dialects within one region of a country and it is often a recipe for disastrous misunderstandings. For instance, when Coca Cola was first marketed in China, it was sold as "Ke-kou-ke-la." After printing thousands of signs, it was discovered that, depending on dialect, the phrase means either "bite the wax tadpole" or "female horse stuffed with wax." The Pepsi slogan, "Come alive with the Pepsi Generation," translated into Taiwanese, means "Pepsi will bring your ancestors back from the dead." The Kentucky Fried Chicken slogan, "Finger-lickin' good," is "Eat your fingers off" in Chinese.^[14] Rather than experience these cultural debacles, the leader should strive to understand the global marketplace and the countries and regions within which he or she does business.

Think Globally, Act Locally

Through the global marketplace, the countries of the world are linked today more than ever before. As such, global leaders need to have a global view and understand benefits on a global level.^[15] It is no longer sufficient for leaders to view business solely from a national or local point of view. The global leaders of the future will have a worldwide perspective when making decisions,^[16] and they will need in-depth strategic thinking, such as being a global trends observer.^[17]

The leaders of tomorrow must have the ability to suspend, for the moment, their cultural background and assume the culture of the people with whom they are dealing in order to understand and pinpoint new opportunities. Then the leaders must be able to take this information from the microscopic investigation to the more macroscopic global perspective in order to guide decisions that are consistent with a global vision.^[18]

For example, before Accenture went public in July 2001, it was a group of 34 legally separate entities spread throughout the world. The total partnership was a matrix of those entities. To go public, all of the partnerships had to be on the same page, doing the same thing at the same time, for the right reasons. Prior to the IPO, CEO Joe Forehand spent over six months visiting each partnership to understand its frame of reference. He went with colleagues who could take those different points of view and understand what they would mean to an IPO situation. In turn, each partner committed to the IPO. The parnters voted to do this not only for reasons suiting their own business needs, but also because the six-month dialogues allowed all parties to develop a common vision of the future that the partners believed was critical to remain a market leader. In this positive example of thinking globally, Forehand, his colleagues, and the partnerships started from different points of view and then worked together towards a global outcome.

On the other hand, 95 percent of U.S. companies that go to China fail because they don't understand the views and biases in other countries. They have the wrong game plan. They are doing their business for self-interest that does not work because foreign companies don't have the same mission and motivation. Most American companies are not making money in Asia. They are doing business there for strategic reasons. They are taking a hit now for what they perceive as strategic long-term advantage.^[19] In our (the authors') own work in establishing a global coaching network, we realized that our first ventures in China were going to be unprofitable from a short-term revenue perspective, yet very valuable from a long-term learning and growth perspective.

A Global Village

An organization's international success is dependent upon a globally literate team. To this end, the global leader of the future will help to educate people and prepare them to do business with different cultures. Each member of the team will be prepared to do business with people from around the world. You can't be an independent global leader—you need an organization behind you.^[20] Many global customers want "one-stop shopping." They will no longer accept the complexity of having to deal with different suppliers and billing systems that are providing the same product in different locations.

Part of this preparation includes overcoming stereotypes and ignorance. There are people who think that a two-week vacation in Russia or a relative's experience in China gives them the knowledge they need to make judgments about an entire culture. This will not bode well when conducting business. Neither will the commonsense approach, because what may be common sense to one culture may be offensive to another.

To initiate a general understanding of the cultures and countries within which a company does business, the global leader might ask company employees questions such as What do they need to know to do business internationally? How do they see other cultures? How do they see their own culture? And then compare and contrast different value systems. Whether the answers are right or wrong is not important at this point; what is important is to begin to expand people's global knowledge.^[21]

Next, the global leader must acquire a culture-specific education. Each person should have a thorough understanding of the culture in which he or she will be doing business before getting on the plane. The understanding should be more than demographic. It should include cultural values, beliefs, how the country operates, and what is (and is not) appropriate.

The leader might hire an expert to teach the team or may ask a colleague who has worked abroad to share his or her experiences, especially with particular clients or partners with whom they have been working. If such steps are not taken to help others understand the different impacts of globalization, it may be very difficult for individuals from different cultures to understand each other; actions from people of other cultures can easily be misinterpreted, and misunderstandings are more likely to happen.

There are fewer boundaries in global business, due to changes in the market, and leaders need to be adaptable and flexible to take advantage of opportunities that are created. Education needs to come from different sources; they will need a network of trusted advisors and confidants in the different regions where they are doing business. There will need to be much more diversity on their management team, different viewpoints and perspectives, and [they must] have the insight to take global strategies and localize them. Learning from each other is part of the education process.^[22]

Another crosscultural challenge for the global leader is working in one country and reporting to another. In this case, the global leader is leading from the middle as the go-between or interpreter between the local people, (i.e., the government, suppliers, customers, workers, colleagues) and the company headquarters. The global leader becomes an interpreter of sorts, communicating headquarters' goals to the local business people and explaining the reality of the situation in the foreign country to those at headquarters.

Conclusion

International business success is dependent upon the leader's understanding of the global landscape and the ability to rapidly adapt to the changes that impact the businesses environment. Leaders of domestic organizations as well as those of global companies must handle issues of globalization such as competition, mergers and acquisitions, dissolving borders, and cultural diversity. Therefore, the great challenge for the new generation of leaders will be to gain direct knowledge and real experience in a wide variety of geographical areas and to build and articulate a clear vision, even as both the workforce and clientele become increasingly diverse.

The importance of thinking globally to the next generation of global leaders is illustrated in our research. We developed a list of the 100 success factors, in order of importance, for leaders past, present, and future. According to those leaders surveyed, the three most important success factors for a leader in the past were (1) demonstrating self-confidence as a leader; (2) striving to achieve personal excellence in whatever he or she does; and (3) demonstrating honest, ethical behavior in all interactions. Looking at the present day, the picture changes a little bit: (1) demonstrating self-confidence as a leader remains number 1; (2) creating and communicating a clear vision for her or his organization moved from number 8 for past leaders to number 2 for present; (3) consistently treating people with respect and dignity gained importance, moving from seventh to third position For the future, (1) consistently treating people with respect moved to first position; (2) understanding the impact of globalization on her or his business took a startling leap forward from the 71st (present) and 77th (past) positions to number 2; and (3) creating and communicating a clear vision for her or his organization remained in the top three, though it took a step back for understanding globalization.

Not only did understanding the impact of globalization move into the top three, it rocketed there from near the bottom of the pack in both the past and present surveys. The high-potential leaders in our study are sending a clear message. While thinking globally may have been an option for the leader of the past, it will be a requirement for the leader of the future.

Resource Section: Thinking Globally

ITEM 1: Recognizes the Impact of Globalization on Our Business

WHAT TO DO

• Determine if your company is a global organization, and if so, to what extent.
• Understand how the global economy affects your business and the industry within which it operates.
• Understand industry and organizational trends and how these trends relate to the global landscape.
• Determine the countries within which your company currently does business or within which the company would like to explore doing business.
• Determine the technology and resources needed to further the company's global business efforts.
• Determine which country your information technology supplier is from. If this is likely to change, explore the countries that new IT suppliers might be from.

HOW TO DO IT

• Define the areas of the company, such as marketing, sales, and manufacturing, that have, or should have, a global focus.
• Define the percentage of your organization, workforce, and managers who are either located in foreign countries, citizens of other countries, or working outside their native country.
• Analyze the percentage of customers, suppliers, manufacturers, competitors, and investors located in foreign countries now and in the future.
• Figure the percentage of revenues and profits that come from foreign markets. Are the markets within which you expect your company to grow foreign or domestic?
• Forecast industry and global business trends and activities, inside and outside the organization, to be prepared for changes and to take advantage of opportunities. Explore the effects of these trends and activities on the business.
• Explore and develop global business opportunities.
• Decide which products, if any, your company currently produces will be marketable in those countries with which your company would like to do business.
• Ask IT staff to gather information about global technology improvements and advances, and to present a global communications improvement plan.

HOW TO USE THIS SKILL FURTHER

• Develop international contacts. Discuss the market, demographics, and cultural and business norms in different countries.
• Take a university course in global economics that provides a macro view of world economic systems and how they interact. Study how economic events in one country affect other countries.
• Join a discussion group whose focus is world events and the impact of those events on countries, people, governments, and businesses.

RESULTS YOU CAN EXPECT

• You may have a better understanding of the global economy and its effect on your company and its industry.
• Others may come to you for insight into the possibilities and challenges of global expansion.
• You may become a highly valued member of your company.

READINGS

• Boston to Beijing: Managing in the Global Marketplace. Nancy J. Adler, Rob Bloom, & John Szilagyi. 2001. South-Western, London, ISBN 324074751.
• Eight Giant Steps to Global Domination: A Personal Guide to Finding Your Niche, Conquering Your Market, and Taking Your Company to the Top. Kenn Viselman. 2000. McGraw-Hill, New York, ISBN 007136241X.
• Global Literacies: The New Language for Business Leaders. Robert Rosen with Carl Phillips, Marshall Singer, & Patricia Digh. 2000. Simon & Schuster, New York. ISBN 0684859025.
• Global Marketing. Warren J. Keegan & Mark C. Green. 1999. Prentice Hall, Upper Saddle River, NJ, ISBN 0130842680.
• Growth Warriors: Creating Sustainable Global Advantage for America's Technology Industries. Ronald Mascitelli. 1999. Technology Perspectives, Northridge, CA, ISBN 0966269705.
• The Lexus and the Olive Tree: Understanding Globalization. Thomas L. Friedman. 2000. Anchor Books, New York, ISBN 385499345.
• Regions and the World Economy: The Coming Shape of Global Production, Competition, and Political Order. Allen J. Scott. 2000. Oxford University Press, Oxford, England, ISBN 0198296584.
• The Global Entrepreneur: Taking Your Business International. James F. Foley. 1999. Dearborn Trade, Chicago, ISBN 1574101242.
• The World in 2020: Power, Culture and Prosperity. Hamish McRae. 1996. Harvard Business School Press, ISBN 875847382.

ITEM 2: Demonstrates the Adaptability Required to Succeed in a Global Environment

WHAT TO DO

• Understand how the global economy affects your business and the industry within which it operates.
• Understand industry and organizational trends, and how these trends relate to the global landscape.
• Broaden your view and knowledge about the cultural and business norms of other countries.
• Be willing to adapt your management style when necessary.
• Strive to be flexible and less conservative under different circumstances.
• Try to understand why sometimes you may resist change. Identify the root cause and overcome it.
• Develop a positive attitude when facing difficult situations.
• Keep an open mind in all situations.

HOW TO DO IT

• Forecast industry and global business trends and activities, inside and outside the organization, to be prepared for changes and to take advantage of opportunities. Explore the effects of these trends and activities on the business.
• Explore and develop global business opportunities.
• Develop and maintain international contacts. Discuss the market, demographics, and cultural and business norms in different countries.
• Develop relationships with people in your company from other cultures and countries. Discuss globalization, business practices, and cultural norms with them. Discuss the similarities and differences in the ways in which they would understand, handle, and interpret different situations.
• Look at global events from the perspective of others before making judgments.
• Observe your opinions and beliefs about international events and other countries' cultures.
• Learn specific business practices of other countries. Analyze how these styles have been successful or unsuccessful in the global market.
• When considering adapting a different management style, ask yourself Why not? instead of Why?
• Ask people with whom you work for specific feedback on how you are doing in adapting your management style to the global environment.
• Remain open to alternatives and new ideas.

HOW TO USE THIS SKILL FURTHER

• Participate in crosscultural training and encourage your staff to do the same. Share your learning with each other.
• Volunteer to lead projects involving adaptation, innovation, and globalization.
• Identify one or two people in your organization who excel in this area. Discuss techniques, business practices, and cultural norms with these colleagues.
• Journal all of your experiences in other countries.

RESULTS YOU CAN EXPECT

• You may be seen by others as progressive and cooperative.
• There may be less confusion and frustration when dealing with complex global issues.
• You may be asked to communicate the organization's global goals to others.

READINGS

• Culture's Consequences: Comparing Values, Behaviors, Institutions, and Organizations Across Nations. Geert Hofstede. 2001. Sage, Thousand Oaks, CA, ISBN 0803973233.
• Global Literacies: Lessons on Business Leadership and National Cultures. Robert H. Rosen, Patricia Digh, Marshall Singer, & Carl Phillips. 2000. Simon & Schuster, London, ISBN 684859025.
• Strategic Flexibility: Managing in a Turbulent Environment. Gary Hamel & Don O'Neal. 1999. John Wiley & Sons, New York, ISBN 0471984736.
• Successful Manager's Handbook. Susan Gebelein, Lisa A. Stevens, Carol J. Skube, & David G. Lee. 2000. Personnel Decisions International, Minneapolis, MN, ISBN 093852920X.
• The New Global Leaders: Richard Branson, Percy Barnevik, and David Simon. Manfred F. R. Kets De Vries & Elizabeth Florent-Treacy. 1999. Jossey-Bass, San Francisco, ISBN 787946575.
• The Quest for Global Dominance: Transforming Global Presence into Global Competitive Advantage. Vijay Govindarajan & Anil K. Gupta. 2001. Jossey-Bass, San Francisco, ISBN 787957216.
• The Reengineering Revolution. Michael Hammer & Steven Stanton. 1995. HarperCollins, New York, ISBN 0887307361.

ITEM 3: Strives to Gain the Variety of Experiences Needed to Conduct Global Business

WHAT TO DO

• Determine the countries within which your company currently does business or within which the company would like to explore doing business.
• Explore and develop global business opportunities.
• Realize that the knowledge and understanding of other countries, cultures, and business practices is critical to conducting successful global business.
• Learn about the cultural norms and business practices in other countries where you want to conduct business.
• Learn the related foreign languages and encourage your coworkers to do the same.
• Recognize that success in your career requires continued development of skills and knowledge, including those in the global arena.
• Identify specific individuals, within and outside of your organization, who have global experiences as resources.

HOW TO DO IT

• Participate in crosscultural training and encourage your staff to do the same. Share your learning with each other.
• Forecast industry and global business trends and activities, inside and outside the organization, to be prepared for changes and to take advantage of opportunities. Explore the effects of these trends and activities on the business.
• Develop international contacts. Discuss the market, demographics, and cultural and business norms in different countries.
• Develop relationships with people in your company from other cultures and countries.
• Discuss globalization, business practices, and cultural norms with (1) people from other cultures and countries and (2) those who have had experiences doing business globally. Discuss the similarities and differences in the ways in which they would understand, handle, and interpret different situations.
• Ask people who are familiar with the countries with which you would like to do business for insights about the similarities and differences between your culture and business practices and theirs. Identify the differences that could be problematic in conducting business.
• Spend time with natives of other countries. Compare different perspectives due to different backgrounds. Find out the similarities too.
• Learn the language of the country before you conduct business there. Make language proficiency a hiring requirement for particular positions.
• Create opportunities to travel abroad to expand your knowledge and global perspective.

HOW TO USE THIS SKILL FURTHER

• Participate in crosscultural communication workshops or training to get a deeper understanding of other cultures.
• Ask for more opportunities to go abroad to work with people from other cultures.
• Build friendships with people from different cultures.

RESULTS YOU CAN EXPECT

• You may become more competent in dealing with intercultural business relationships.
• You may gain more opportunities to be promoted.
• You may be seen as having potential for higher levels of responsibility.

READINGS

• Culture Clash: Managing in a Multicultural World. H. Ned Seelye & Alan Seelye-James. 1995. NTC Business Books, Lincolnwood, IL, ISBN #0844233048.
• International Success: Selecting, Developing, and Supporting Expatriate Managers. Meena S. Wilson & Maxine A. Dalton. 1998. Center for Creative Leadership, Greensboro, NC, ISBN 1882197453.
• Successful Manager's Handbook. Susan Gebelein, Lisa A. Stevens, Carol J. Skube, & David G. Lee. 2000. Personnel Decisions International, Minneapolis, MN, ISBN 093852920X.
• Up Is Not the Only Way: A Guide to Developing Workforce Talent. Beverly L. Kaye. 1997. Consulting Psychologists Press, Palo Alto, CA, ISBN 891060995.
• The Lexus and the Olive Tree: Understanding Globalization. Thomas L. Friedman. 2000. Anchor Books, New York, ISBN 385499345.
• The World in 2020. Hamish McRea. 1995. Harvard Business School Press, Boston, ISBN 0256115842.

ITEM 4: Makes Decisions that Incorporate Global Considerations

WHAT TO DO

• Determine if your company is a global organization, and if so, to what extent.
• Learn the business practices of other countries and cultures.
• Compare the business practices of successful multinational companies with those of your company. Identify similarities and differences between practices.
• Develop an understanding of how current, past, and possible future world events will affect the organization.
• Move beyond a domestic business focus by expanding your international mindset.

HOW TO DO IT

• Analyze how the global economy affects your business and the industry within which it operates.
• Decide which products, if any, your company currently produces will be marketable in those countries with which your company would like to do business.
• Analyze how industry and organizational trends relate to the global landscape.
• Study the competition: How does it sell products internationally?
• Study the business practices of successful multinational companies.
• Talk with people in your network, especially those from other countries, to learn the business and social etiquette of other cultures.
• Analyze global economic patterns and the effect of large organizational shifts on global industries.
• Analyze the impact of world events on your industry and organization. Ask for the opinions of people from different countries and cultures, and consider your own as well.
• Identify the potential barriers in conducting business with other countries.
• Spend time with natives of other countries. Compare different perspectives due to different backgrounds. Find out the similarities too.

HOW TO USE THIS SKILL FURTHER

• Read books, newspapers, and other literature that focus on world events, global business, and your industry.
• Develop international contacts. Discuss the market, demographics, and cultural/business norms in different countries.
• Join a discussion group whose focus is world events and the impact of those events on countries, people, governments, and businesses.

RESULTS YOU CAN EXPECT

• You may have a better understanding of the global economy and its effect on your company and its industry.
• Others may come to you for insight into the possibilities and challenges of global expansion.
• You may become a highly valued member of your company.

READINGS

• Cultures and Organizations: Software of the Mind, Intercultural Cooperation and Its Importance for Survival. Geert Hofstede. 1996. McGraw-Hill, New York, ISBN 0070293074.
• Designing the Global Corporation. Jay Galbraith. 2000. Jossey-Bass, San Francisco, ISBN 787952753.
• Riding The Waves of Culture: Understanding Diversity in Global Business. Alfons Trompenaars & Charles Hampden-Turner. 1997. McGraw-Hill, New York, ISBN 0786311258.
• Special Blend: Fusion Management from Asia and the West. Lynette Lithgow. 2000. John Wiley & Sons, New York, ISBN 0471845507.
• Successful Manager's Handbook. Susan Gebelein, Lisa A. Stevens, Carol J. Skube, & David G. Lee. 2000. Personnel Decisions International, Minneapolis, MN, ISBN 093852920X.
• The Differentiated Network: Organizing Multinational Corporations for Value Creation. Nitin Nohria, Sumantra Ghoshal, & Cedric Crocker, 1997, Jossey-Bass, San Francisco, ISBN 787903310.
• The Multinational Mission: Balancing Local Demands and Global Vision, C. K. Prahalad & Yves L. Doz. 1999. Simon & Schuster, London, ISBN 684871327.
• The Organization of the Future. Frances Hesselbein, Marshall Goldsmith, & Richard F. Beckhard. 2000. Jossey-Bass, San Francisco, ISBN 787952036.

ITEM 5: Helps Others Understand the Impact of Globalization

WHAT TO DO

• Realize that a multinational organization is not likely to be successful unless its employees understand the organization's global vision and have access to the information they need to achieve the vision.
• Ensure that you and your employees have a clear understanding of the company's global vision and strategies.
• Check your information for accuracy before sharing it with others or drawing any conclusions.
• Blend key ideas into a concept that is meaningful to and easily understood by all concerned.
• Encourage others to ask questions if they do not have sufficient information to make a decision.
• Develop a global vision based on facts that can be supported.
• Keep the global vision statement short and simple.
• Encourage your employees to keep each other informed and share the global vision and strategies freely.

HOW TO DO IT

• Review the information to make sure it does not generalize, exaggerate, leave out important facts, or understate matters.
• Write the name of your source(s), thereby establishing proof for your views.
• Consider what would happen if you fail to synthesize the information to attain a global vision and communicate it to others.
• When needed, interpret and elaborate on the global vision statement; define terms, clear up confusion, and add alternatives and suggestions.
• When presenting the global vision, be as specific as possible and avoid "fuzziness" or hinting.
• Discuss techniques with managers who excel at this area.
• Regularly ask employees what you can do to help them achieve the vision.
• Help employees analyze the information in a complex situation and develop a clear global vision.
• Share specific global strategies and procedures in your organization that align with the vision.
• Conduct staff meetings and/or round table discussions regularly to share information about recent global development of the organization.
• Plan your information-giving session to avoid interruptions and assure attentiveness.
• Communicate company information to your employees in an open and positive way.

HOW TO USE THIS SKILL FURTHER

• Ask for honest feedback on how you are doing in this area.
• Volunteer to help a multinational philanthropic organization develop its global vision.

RESULTS YOU CAN EXPECT

• There may be less confusion and frustration when dealing with complex issues.
• There may be fewer crises and less stress.
• You may be asked to communicate organizational goals and values to others.

READINGS

• Common Knowledge: How Companies Thrive by Sharing What They Know. Nancy M. Dixon. 2000. Harvard Business School, Boston, ISBN 0875849040.
• Communicating in Groups and Teams: Sharing Leadership. Gay Lumsden & Donald Lumsden. 1999. Wadsworth Publishing, Florence, KY, ISBN 0534562329.
• From Third World to World Class: The Future of Emerging Markets in the Global Economy. Peter Marber. 1999. Perseus, Reading, MA, ISBN 0738201324.
• International Success: Selecting, Developing, and Supporting Expatriate Managers, Meena S. Wilson & Maxine A. Dalton. 1998. Center for Creative Leadership, Greensboro, NC, ISBN 1882197453.
• The New Business of Business: Sharing Responsibility for a Positive Global Future, Willis Harman & Maya Porter. 1997. Berrett-Koehler, San Francisco, ISBN 1576750183.

Endnotes

1. Reprinted with the permission of Simon & Schuster Adult Publishing Group from Global Literacies: The New Language for Business Leaders, Robert H. Rosen, Ph.D., with Carl Phillips, Marshall Singer, and Patricia Digh. Copyright © 2000 by RHR Enterprises.

2. Technology, Canada, 56. Throughout this book we will use quotes taken directly from our interviews with next-generation leaders. These quotes are set in italics or boxed. Each leader is identified only by industry, country, and age.

3. Health care, France, 44.

4. Products and services, United States, 44.

5. Products and services, United States, 33.

6. Technology, Sweden, 32.

7. Technology, United States, 36.

8. Transportation, United States, 40.

9. Products and services, United States, 35.

10. Products and services, United States/England/Norway, 49

11. Technology, Canada, 48.

12. Products and services, United States, 42.

13. Transportation, Canada, 47.

14. http://www.lovedpet.com/jokes/mishaps.html

15. Technology, United States, 28.

16. Technology, South Korea, 46.

17. Products and services, Mexico, 34.

18. Technology, United States, 26.

19. Technology, United States, 36.

20. Government, Switzerland/United States, 45

21. Technology, United States, 37.

22. Technology, Japan, 41.

23. Information and quotes from interview with Rosemarie Greco conducted by Cathy Greenberg, April 2002.