E. James Simon simonassociates

1. Global Leadership Challenge E. James Simon www.simonassociates.org

3. “… rigorous methodology … identifying the very best business leaders.”

4. “There is a lot one person can do.”

5. “There is a lot one person can do.” Dennis Kozlowski (Tyco Int’l) Convicted - grand larceny, conspiracy, falsifying business records, violating business law. Serving 8-25 year sentence at Mid-State Correctional Facility, New York

6. “The only real values are the eternal ones.”

7. “The only real values are the eternal ones.” Bernie Ebbers (MCI World Com) Convicted- conspiracy, securities fraud, filing false statements. Serving 25 years in Federal Prison, Oakdale, Louisiana.

8. “…secrets to our success … creating big pockets of entrepreneurship throughout the company…”

9. “…secrets to our success … creating big pockets of entrepreneurship throughout the company…” Ken Lay (Enron) Convicted - conspiracy, fraud. Died before sentencing.

10. ”Once you think you can write down what made you successful, you won’t be.”

11. ”Once you think you can write down what made you successful, you won’t be.” Lou Gerstner (IBM)

12. Bush Gropes Merkel “Americans are too informal in their dealings with their counterparts abroad.” P.M. Forni, Johns Hopkins University

13. Daimler-Chrysler “Merger” • Grand Epic of Globalization • “Merger of equals” • It’s not just a US problem! Jurgen E. Schrempp, Chairman

14. Mergers & Acquisitions LBO Venture Capital Hedge Funds Private Equity + Debt =

15. Raise Revenue Need to: Drop Costs Rapidly!

16. Private Equity YR 1 $50m x 6 = $300m EBITDA MULTIPLE 5 $100m x 6 = $600m + $75 million investment

17. Private Equity • Creates thriving businesses • Clear vision, focus • Limited time horizon vs. “built to last” • Measurable goals

18. Private Equity • Aligns goals with compensation • Exciting ownership mentality • Renewed passion • Speed!

20. Traditional Company • Entrenched management • Inertia • Fear of change • Bond/Equity market concerns (Q2Q) • P/T Director oversight (vs. “skin in game”)

21. Ten Deadly Cultural Sins 1. Overestimating “American Globalization”

22. Defining Global Strategy PC, Internet, Workflow Software No boundaries Standardization Strategy Borders Still Matter Customized, Localized Strategy Need to be Creative in Negotiating Around Cultural Differences Today's Reality is Somewhere In Between

23. Ten Deadly Cultural Sins 2. Taking speaking English for granted

24. Ten Deadly Cultural Sins 3. Failing to perceive your own culture

25. “Culture hides much more than it reveals and, strangely enough, what it hides, it hides most effectively from its own participants.” Edward T. Hall

26. “The failure to perceive yourself as operating in a culture subtly creates the dynamic that you’re operating in standard mode, and everyone else is deviant.” Milton Bennett Intercultural Communication institute

27. Ten Deadly Cultural Sins 4. Not standing in your host’s shoes

28. Ten Deadly Cultural Sins 5. Inability to “live with difference” “We don’t see things as they are, we see things as we are.” Anais Nin

29. Ten Deadly Cultural Sins 6. Not investing in relationships Procurement, price-driven, “objectivity vs. only doing business with people you know!

30. Ten Deadly Cultural Sins 7. Jumping immediately from vision to action

31. Ten Deadly Cultural Sins 8. “Shock and Awe”

32. Ten Deadly Cultural Sins 9. Selecting the wrong people

33. Ten Deadly Cultural Sins 10. Everyone wants to learn - no one wants to be taught.

34. Transformational Global Leadership

35. “Leaders must understand the values and opinions of their followers — rather than assuming absolute authority — to enable a productive dialogue about what the group stands for and how it should act.” Reicher, Haslan & Platow The New Psychology of Leadership Scientific American Mind

36. “The most effective leaders define their group’s social identity to fit with the policies they plan to promote, enabling them to position those policies as expressions of what their constituents already believe.” Reicher, Haslan & Platow The New Psychology of Leadership Scientific American Mind

37. Leaders Shaping Vision Leaders must: Understand employees and reflect their needs and values Help shape employees’ values and aspirations “sweet spot” – successful vision

38. Emotional Intelligence • Primal Leadership • Social Intelligence

39. Emotional Intelligence - EQ • Emotional self-awareness: reading one’s own emotions and recognizing their impact. • Emotional self-control: keeping disruptive emotions and impulses under control. • Adaptability: Flexibility in adapting to changing situations.

40. Emotional Intelligence - EQ • Empathy: sensing others’ emotions, understanding their perspective, taking active interest. • Relationship management: inspiring, influencing, guiding, change management.

41. Social Intelligence - SI • Primal empathy: Feeling with others; sensing non-verbal emotional signals. • Attunement: Listening with full receptivity; attuning to a person. • Empathetic accuracy: Understanding another person’s thoughts, feelings, and intentions. • Social cognition: knowing how the social world works.

42. Social Intelligence - SI • Synchrony: interacting smoothly at the non verbal level. • Self presentation: presenting ourselves effectively. • Influence: Shaping the outcome of social interactions. • Concern: Caring about others’ needs and acting accordingly.

43. EQ + SI + Cultural IQ New Transformational Global Leader = RFT* *Rapid Financial Transformation

44. The New Global Leader must balance the critical elements of Emotional, Social & Cultural IQ – with the unrelenting drive for timely financial performance & improvement.

45. “Not everything that matters can be counted, not everything that can be counted matters.” Albert Einstein “You can’t number-crunch culture.” Jack Welch

46. “We think too much. We feel too little.” Charlie Chaplin

47. Thank You! www.simonassociates.org