International & Cultural Aspects of Leadership

International & Cultural Aspects of Leadership University of San Diego – June 3, 2011 • Tony Rodríguez • C-Level executive & independent business advisor • TonyRodriguez@Alumni.Princeton.edu • Twitter: TonyRod79

Tony Rodríguez -Career progression & key roles • Staff Accountant – CPA (Coopers & Lybrand) – NYC, Northeast • Corporate Planning Analyst (Philip Morris) – NYC & Latin America • Director Corporate Planning (Seagram) - NYC • Director Finance – Seagram Asia Pacific (Hong Kong & Asia-Pacific) • VP Finance & Planning – Seagram Europe (London & Western Europe) • SVP Chief Financial Officer - Seagram Global • SVP Global Strategy Officer - Seagram Global • Global Development Leader – ABSOLUT Vodka Partnership - Sweden • Global E-Business Leader - Seagram Global – “Silicon Valley” • EVP Deputy CEO & Chief of Staff - Seagram Global • SVP Finance, U.S. Operations - Warner Bros. Home Video – Hollywood & USA • SVP North American Operations - Warner Bros. Home Ent. - Canada • SVP Strategic Projects Implementation - WB Home Entert. • Independent Business Advisor / Director – Ivy Advisory – San Diego

Leadership is….. • …defined by the choices you make in response to the challenges and opportunities you encounter along the way. • Good leaders are self-aware and adjust to the situation at hand in order to motivate people towards shared goals and optimal performance.

AGENDA:Diverse Countries & Cultural Examples • Global-9 pilots for strategic business planning • Multiple parties/cultures-US/Sweden (ABSOLUT Vodka) • Asia-North, China, South • Latin America-Mexico, Carrib., Andes, Brazil, Argentina • Europe- North vs. South (Latin) cultures. • US-East vs. West; CA=regions, even So Cal=LA/OC/SD

GLOBAL Initiatives with LOCAL feel • Business Planning Process Launch • Employed 9 very different pilots to learn about: • Market & organization size and capabilities • Diverse Geographic & Cultural implications • Local business and strategic needs • Road tested model & people before global launch

GLOBAL Initiatives with LOCAL feel • Key Lessons: “Not One-Size-Fits-All” • Some customization is vital for effectiveness • Tailor quantity & nature of requirements to smaller markets ability & scope of strategic business needs. • Every market benefits from gradual roll-out: • Focus initially on high level strategic questions which trigger responses that (eventually) lead to a plan.

MULTIPLE Parties & Cultures • U.S. (Seagram) and Sweden (ABSOLUT Vodka Co.) • ABSOLUT (elite spirits brand) holds “beauty contest” to determine their next global distribution partner • Seagram “wins” right to distribute, but making the partnership work effectively takes time & effort. • Key Results: 10 year partnership builds a US brand into the #1 global premium vodka; profitable for all parties. • ABSOLUT Co. & management are “First Responders” when Seagram company is put up for sale; “brothers”!

MULTIPLE Parties & Cultures • Key Lessons: Take time to know & like each other • Learn each others business and ethnic cultures which can influence long-term business priorities/needs. • Engage in cultural practices to show respect, “good faith” and learn “what makes people tick” • Focus on developing personal relationships before diving into business terms (typical US approach) • Emphasize long-term perspective & flexibility to make the right trade-offs to further the partnership.

ASIA – North, China, South • North (Japan & Korea) – more direct style; be ultra-sensitive to historical conflicts (military & political). • South (Thailand/Singapore) – more “Latin” style: less rushed, more “social” & fluid-expect changes. Business community dominated by “ethnic Chinese”. • CHINA = many different regions/cities • Capitol (Beijing) – strict/govt. control vs. frontier towns • Coastal (developed) vs. inland (rural, less sophisticated)

ASIA – North, China, South • Key Lessons: No region is homogenous, evolving fast • Requires extra effort to visit and learn from the locals about their specific culture, taboos and preferences. • Should not make judgments using Western “lens”; what is rude & barbaric in the West may be polite/courteous, and vice-versa-respect differences even if not your cup of tea.

LATIN AMERICA – Brazil & Arg. • Various sub-regions with distinct features: • Mexico/”NAFTA”; Caribbean, Andes, Southern Cone • Argentina: General Manger for a month • “Forrest Gump” transformed into “Che” • Customer visits & night-time cultural immersion: tango! • Brazil: Town Hall meeting during unfriendly take-over • French acquirer with vague communications: “mulher?”

EUROPE – No/South; West/East • North: England, Germany, Scandinavia • Takes longer to warm up, but more permanent • Direct, no-nonsense without intent to be “rude” • South (Latin): Italy, Spain, Portugal, France, Greece • More extroverted (dramatic) with greater personal / family influence on business affairs. • Example: Ricasoli winery (Italy) & his 3 sisters

United States: East/West Coasts • East Coast expectations vs. LA “giving good meeting” • California’s different regions-North (SF) vs. South • “Southern Cal” = 3 counties (LA, OC, SD), each with their own coastal vs. “inland” cultures & industries • LA-Entertainment, CPG; “everything goes” • OC-Banks, Large Industrial; more formal • SD-smaller, bio-tech, life sciences; entrepreneurial

RECAP Key Learnings: • Don’t assume you know anything – find out for yourself with the people you are dealing with. • Stay flexible and adapt to work with cultural & personal needs to align people towards common goals. • Road test global or regional projects w/local venues. • Release products/projects in evolutionary approach to incorporate feedback and continuously improve.

RECAP Key Learnings: • Engage your partners to learn about them and teach them about “what planet you come from”. • Treat every interaction as a potential long term relationship; invest time & effort accordingly. • Use your sense of humor and learn to appreciate others, especially if they are different than your norms. • Have fun… since corporate life is no “dress rehearsal” and it can be over before you know it.

International & Cultural Aspects of Leadership