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T H U N D E R B I R D Global Mindset ®: Why is it important for Global Leaders? Mansour Javidan, Ph.D. Dean of Research and Garvin Distinguished Professor.

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Presentation on theme: "T H U N D E R B I R D Global Mindset ®: Why is it important for Global Leaders? Mansour Javidan, Ph.D. Dean of Research and Garvin Distinguished Professor."— Presentation transcript:

1 T H U N D E R B I R D 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 The ability to influence individuals, groups, organizations, and systems that are unlike the leader’s. Global Mindset

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

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

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

12 “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 Always80%

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 Important95%

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

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

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

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

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

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 Lincoln Electronic Holdings, Inc. McDonald’s Corporation Medtronic Raytheon Rich Products Corporation SK Academy Smith International Solar Turbines, Inc. State Farm Insurance Company Swanson The Standard Bank Thunderbird School of Global Management (Faculty, Students, Alumni & Staff) Vitro Wal-Mart

26 Overall Global Mindset Profile for Thunderbird Alumni vs. Students

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