Global Mindset Inventory .

1. Global Mindset Inventory . Dr. Ken Rauch Indiana Tech Ph.D. in Global Leadership

2. Introduction to Global Mindset What It Is ? Why It Matters ? Rauch/Tech

3. Questions for Discussion • What are your clients’ global ambitions? • What are their needs regarding global leadership? • What issues and challenges are they facing? • How important is global leadership to them? • How important is a talent management system to your clients? Is it producing what their organizations need? • How important are global virtual teams to your clients? Rauch/Tech

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5. The World May Be Flatter Rauch/Tech

6. …….however • It is more complex: • Multiple stakeholders • Greater interdependence and interconnection • Fluctuating economic, political, and social factors • Relentless global competition • Rapid change Rauch/Tech

7. In a 2009 IBM survey of over 1500 CEO’s: • 60% view the economic environment as more complex, multifaceted, and interconnected • 79% expect high/very high level of complexity over the next five years • 49% feel prepared for the expected level of complexity Rauch/Tech

8. The World May Be Flatter, BUT • It is more diverse • The work force • Management systems • Customer needs • Cultural values • Political, economic, and institutional systems Rauch/Tech

9. The World May Be Flatter, BUT • It is more uncertain • Raid change and volatility • Higher levels and sources of risk • Chaos • Unknown variables Rauch/Tech

10. In a 2009 IBM Survey of over 1500 CEO’s: • 69% view the economic environment as more volatile with faster cycles and more risk • 65% view the economic environment as more uncertain • 53% view the economic environment as structurally different with sustained change Rauch/Tech

11. Global Leaders Need to Manage Across: • Diverse cultural systems • Diverse political and institutional systems • Time and geographic distance Rauch/Tech

12. Survey of 100 Global Companies How often are (national) cultural implications of business decisions considered in making business plans in your company? Sometimes or Always 80% Rauch/Tech

13. Survey of 100 Global Companies How important a role do you believe (national) culture plays in the success of your business mission? Important or Very Important 95% Rauch/Tech

14. The Challenge to Global Leaders: How to influence individuals, groups, and organizations inside and outside their firm representing diverse cultural/political/institutional systems under conditions of rapid change and high uncertainty. Rauch/Tech

15. There is Much Written on Global Leadership On Dec. 31, 2010, Amazon.com was offering 1,127 books with a title containing Global Leadership! Rauch/Tech

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17. Corporate Challenge How do we align and leverage the efforts of our employees around the world who join our company with vastly different life experiences, from diverse cultures and often dramatically different contexts? Rauch/Tech

18. HOW do YOU see the world ?Locally or Globally ? Rauch/Tech

19. Global Mindset Project (GMP) • 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 Rauch/Tech

20. The Method for Defining Global Mindset • Started in late 2004 • A group of 8 professors at Thunderbird • Comprehensive review of the existing literature • Interviews with 40 Thunderbird colleagues • Interviews with 217 senior international executives in over 20 cities in the world • An invitation-only conference with 40 distinguished scholars • Definition of Global Mindset and the individual attributes that comprise it Rauch/Tech

21. 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 GMI RESEARCH DESIGN Rauch/Tech

22. Defining Global Mindset In-depth interviews with 217 upper middle and senior international executives in 23 cities in the U.S., China, India, Korea, Taiwan, and European countries. Each interview took at least 60 minutes; some took over two hours. Rauch/Tech

23. Examples of Interviewees • HR Leader, GE Capital, Asia Pacific • Vice President, Human Resources, Asia Pacific Division, FedEx • President of Asia, Briggs & Stratton Corporation • General Manager, Colgate Palmolive, Poland Rauch/Tech

24. 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.” • “Being comfortable with being uncomfortable in uncomfortable environments.” • “Someone with a global mindset enters a new and different situation with many more questions rather than answers, assumptions, and presumptions.” Rauch/Tech

25. Global Mindset • “It’s being able to make sense of contrasting frames of reference and the ability to simultaneously see oneself as American and German.” • “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.” Rauch/Tech

26. Global Mindset A set of individual attributes that help influence individuals, groups, organizations, and systems that are unlike the leader’s. Rauch/Tech

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

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

29. 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 Rauch/Tech

30. 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 Rauch/Tech

31. Comments? Rauch/Tech