1. Leaders Need A Global Mindset Prof. Dr. Andrea Schenker-Wicki University of Zurich Dean Executive MBA Corporate University Forum, Zurich February 9, 2012

2. 1.Why leaders need … 2.What is … 3.How to develop … a global mindset ? 2 Agenda 09.02.2012 |

3. Business is going global Political borders become less relevant Economic interdependecies are heightened Cultural differences are a central issue 09.02.2012 |3 China 480 of Fortune 500 companies are operating in China Google 11.8 Mio. results on globalization

4. Acceleration of business cycles Cumulation of risk and uncertainty 09.02.2012 |4 T = Time y (t) T = Oscillation period Y = Amplitude

5. Leadership across cultural borders Consider cultural differences in organizations Also SME‘s are more and more operating globally Leaders need to have cultural resilience 09.02.2012 |5 Swiss SME‘s Export share of 53.6% in 2009 Workforce Mobility Ass. Culture plays important role in business

6. Global mindset „Set of deeply held internal mental images and assumptions, which individuals develop through a continuous process of learning experience“ (Herbert Paul) „Ability to avoid the simplicity of assuming all cultures are the same, and at the same time, not being paralyzed by the complexity of its differences “ (Herbert Paul) 09.02.2012 |6 Has no global mindset… (Homer Simpson)

7. 09.02.2012 |7 Cultural Differences – Hierarchy (Power Distance) large small

8. Cultural Differences – Group focus (Collectivism) 09.02.2012 |8 individualist collectivist

9. Cultural Differences – Gender (masculinity/femininity) 09.02.2012 |9 masculine feminine

10. Cultural Differences – Uncertainty Avoidance 09.02.2012 |10 unc.avoiding unc.tolerant

11. …are friends with their subordinates but make decisions on their own …compete with their own direct reports and make sure they are better than others …speak honestly, but takes into account others‘ status …use indirect language and metaphors rahter than get straight to the point …avoid taking risks The best leaders…? 09.02.2012 |11 Source: http://geert-hofstede.com PDI Power Distance IDV Individualism/Group Focus MAS Masculinity/Femininity UAIUncertainty Avoidance

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13. Change of leadership orientations Shift towards more group oriented leadership Focus on hard and soft issues Leadership is about influence 09.02.2012 |13 Source: Tichy 1992

14. Conditions for a global mindset 1409.02.2012 | Intellectual Capital Psychological Capital Social Capital Be comfortable with being uncomfortable in uncomfortable enviromnents

15. How to develop a global mindset 09.02.2012 |15 Source: Gupta/Govindarajan/Wang 2008 Curiosity about how the world works Integration of new knowledge and the development of a new mindset Exposure to diversity and novelty Articulation of current mindset Time Development of a Global Mindset

16. Executive MBA University of Zurich „Our managers need to be more effective when operating in different business cultures“ (EMBA UZH survey) 09.02.2012 |16 Course modules in Zurich Culture and its Consequences Doing Business in… India, China, Japan, U.S., Latin America, Eastern Europe, Russia, Middle East, Africa… Business Schools Aalto University, Cambridge University, Fudan University, Indian School of Business, INSEAD, Stanford University, Wageningen University, Yale School of Management, University of Zagreb Study Trips USA China (Shanghai) India (Hyderabad) Africa (tbd)

17. Leaders need a global mindset Sense of market AND cultural feasibility Business Schools can help executives to develop a global mindset 09.02.2012 |17 Thank you! Prof. Dr. Andrea Schenker-Wicki University of Zurich Dean Executive MBA andrea.schenker@business.uzh.ch www.emba.uzh.ch