Global Mindset ®: Why is it important for Global Leaders?

1. Global Mindset®: Why is it important for Global Leaders? Mansour Javidan, Ph.D. Dean of Research and Garvin Distinguished Professor Global Mindset ® is a registered trademark of Thunderbird School of Global Management. All rights reserved.

2. Corporate Global Ambitions

3. Samuel J. Palmisano, the Chair of the Board, President, and CEO of IBM: • “Today’s global corporations are shifting their focus from products to production-from what things companies choose to make to how they choose to make them, from what services they offer to how they choose to deliver them. Simply put, the emerging globally integrated enterprise is a company that fashions its strategy, its management, and its operations in pursuit of a new goal: the integration of production and value delivery worldwide. ”

4. The Challenge to Global Leaders How to influence individuals, groups, and organizations inside and outside their own organization representing diverse cultural/political/institutional systems to help achieve their corporation’s global ambitions.

5. The Globalized World of Business

6. Global Leaders need Global Mindset

7. Global Mindset The ability to influence individuals, groups, organizations, and systems that are unlike the leader’s.

8. Global Mindset Project (GMP) at Thunderbird • Define Global Mindset ® • Identify the antecedents and consequences of Global Mindset® • Develop metrics for measuring Global Mindset® • Design scientifically based assessment tools for Global Mindset® • Conduct large scale studies of executives in large multinational corporations • Assess Thunderbird’s impact on students’ Global Mindset- Pre and post test • Offer a suite of solutions to enhance the Global Mindset of managers and executives

9. management, org studies education training/HR language/ x-cult international relations Review literatures, formulate research frame n=8 global scholars #1 sampling plan: interviews, focus groups w/int’l scholars sr. acad. n-30 create/refine research questions validate via expert judges Obj. #1 investigate the nature and relevance of “global mindset" critique internally revise as needed #2 sampling plan: interviews and small group discussions with international managers, execs, scholars n=200 feed back to participants categorize perceptions/ experiences/observations of “global mindset”+ analyze data, observations, participant discussions differentiate and define “global mindset” -Obj. #2 validate construct, revise to state-of-art scholarly perspective focused group discussions w/participants revise as needed #3 sampling plan: expert informant conference n=44 identity antecedents, consequences, and applications contingencies of “global mindset” Obj. #3 validate construct, revise to state-of-art practitioner perspective collect additional data, consolidate into emergent themes #4 sampling plan: interviews w/ sr. exec. experts n=17 #5 generate items re: Intel/Psych/Soc capital n-100 int’l MBA’s + psychometricians revise as needed final ‘reality’ check, including emergent factors of GI Mindset drill int’l leaders experiences/insights re:invid/org gl mindset successes The Global Mindset Inventory #7 pilot test #2 int’l managers n/800 #6 pilot test: int’l MBA’s n-,207 revise Items to assure psychometric soundness create Global Mindset Inventory draft

10. Global Mindset is a set of individual attributes that enable and facilitate global leadership.

11. Global Mindset The ability to influence individuals, groups, organizations, and systems that are unlike the leader’s.

12. Global Mindset • “Global mindset to me means that the individual has a global passport, but in their head.” • “It’s the ability to understand the similarities and differences among cultures and their reasons.”

13. Global Mindset • “understanding and respecting other cultures rather than judging them.” • “The ability to avoid the simplicity of assuming all cultures are the same, and at the same time, not being paralyzed by the complexity of the differences.”

14. Global Mindset • “I think it’s a natural curiosity to learn more about other cultures.” • “Rather than being frustrated and intimidated by the differences, enjoying them and seeking them out because you find them fascinating.”

15. Survey of 100 Global Companies How often are cultural implications of business decisions considered in making business plans in your company? Sometimes or Always 80%

16. Survey of 100 Global Companies How important a role do you believe culture plays in the success of your business mission? Important or Very Important 95%

17. Global Mindset • “Being comfortable with being uncomfortable in uncomfortable environments.” • “It’s like a bug. Once you have it, you can’t get rid of it.”

18. Gerald Schafer is a Swiss national who has never really lived in Switzerland. He was born in Budapest to a Swiss foreign-service officer and his Hungarian wife. Mr. Schafer grew up in Africa and South America and studied in the United States. He speaks Portuguese (at home with his Brazilian wife), Spanish, French, German, English and Hungarian.

19. Global Mindset and Effective Global Leadership Social Capital Individuals who possess the behavioral flexibility and discipline to act appropriately The Corporation’s ambition to be successful in globalmarkets Global Leaders who are effective in influencing people from different socio-cultural systems Psychological Capital Individuals who have a global mindset Individuals who are capable of perceiving, analyzing and decoding the global operating environment Behavioral Repertoire What is the game? What are the rules? Intellectual Capital How do we win? Individuals who can accurately identify effective managerial action in the global operating environment

20. GLOBAL MINDSET Intellectual Capital Psychological Capital Social Capital Passion for Diversity Global Business Savvy Intercultural Empathy Quest for Adventure Cognitive Complexity Interpersonal Impact Self-Assurance Cosmopolitan Outlook Diplomacy

21. Knowledge of global industry Knowledge of cultures in different parts of the world Ability to grasp complex concepts quickly Knowledge of global competitive business & marketing strategies Knowledge of geography, history and important persons of several countries Strong analytical and problem solving skills Knowledge of how to transact business & manage risk in other countries Up-to-date knowledge of important world events Ability to understand abstract ideas Knowledge of supplier options in other parts of the world Knowledge of economic and political issues, concerns, hot topics, etc. of major regions of the world Ability to take complex issues & explain the main points simply & understandably Global Business Savvy Cognitive Complexity Cosmopolitan Outlook Intellectual Capital (IC)

22. Passion for Diversity Self-Assurance Quest for Adventure Psychological Capital (PC) Interest in exploring other parts of the world Interest in dealing with challenging situations Energetic Willingness to take risks Interest in getting to know people from other parts of the world Self-confident Interest in living in another country Willingness to test one’s abilities Comfortable in uncomfortable situations Interest in variety Interest in dealing with unpredictable situations Witty in tough situations

23. Intercultural Empathy Diplomacy Interpersonal Impact Social Capital (SC) Experience in negotiating contracts in other cultures Ease of starting a conversation with a stranger Ability to work well with people from other parts of the world Ability to emotionally connect to people from other cultures Strong networks with people from other cultures and with influential people Ability to integrate diverse perspectives Ability to understand non-verbal expression of people from other cultures Reputation as a leader Ability to listen to what others have to say Ability to engage people from other parts of the world to work together Credibility Willingness to collaborate

24. Thunderbird Global Mindset Inventory (TGMI) • A scientific instrument with strong psychometric properties • 91 items • Internet based • Over 5000 individuals have completed the survey in many parts of the world • Available in self-assessment and 360 version

25. Companies Represented in the Global Mindset Surveys • Amway • Baker Hughes • Delphi • Dow Agro Sciences, LLC • Dow Chemical Company • DTCC • Eaton Corporation • EDS Corporation • EMC • Fluor Corporation • Henkel • Hydro • Intel China • Johnson & Johnson • Legrand • LG Electronics

26. Overall Global Mindset Profile forThunderbird Alumni vs. Students

28. Grazie! Merci! Do jie! Arigato! Gmadlob! Toa chie! Tak! Gracias! Thank you! Spasiba! Go maith! Danke! Tashakkur! Diolch! Sayol! Shakran! Dank je! 28