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Global Leadership Challenge
Global Leadership Challenge E. James Simon www.simonassociates.org 2008
Global Leadership Challenge
2008
Global Leadership Challenge
“… rigorous methodology … identifying the very best business leaders.”
2008
Global Leadership Challenge
“There is a lot one person can do.”
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Global Leadership Challenge
“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
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Global Leadership Challenge
“The only real values are the eternal ones.”
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Global Leadership Challenge
“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.
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Global Leadership Challenge
“…secrets to our success … creating big pockets of entrepreneurship throughout the company…”
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Global Leadership Challenge
“…secrets to our success … creating big pockets of entrepreneurship throughout the company…” Ken Lay (Enron) Convicted - conspiracy, fraud. Died before sentencing.
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Global Leadership Challenge
”Once you think you can write down what made you successful, you won’t be.”
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Global Leadership Challenge
”Once you think you can write down what made you successful, you won’t be.” Lou Gerstner (IBM)
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Global Leadership Challenge Bush Gropes Merkel “Americans are too informal in their dealings with their counterparts abroad.” P.M. Forni, Johns Hopkins University
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Global Leadership Challenge Daimler-Chrysler “Merger” • Grand Epic of Globalization • “Merger of equals” • It’s not just a US problem!
Jurgen E. Schrempp, Chairman
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Global Leadership Challenge
Mergers & Acquisitions LBO Venture Capital Hedge Funds Private Equity + Debt
=
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Global Leadership Challenge Raise Revenue
Need to:
Rapidly!
Drop Costs 2008
Global Leadership Challenge Private Equity YR
1 $50m
x
EBITDA
5
$100m
6
= $300m
MULTIPLE
x
6
+ $75 million investment
= $600m
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Global Leadership Challenge Private Equity • • • •
Creates thriving businesses Clear vision, focus Limited time horizon vs. “built to last” Measurable goals
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Global Leadership Challenge Private Equity • • • •
Aligns goals with compensation Exciting ownership mentality Renewed passion Speed!
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Global Leadership Challenge
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Global Leadership Challenge Traditional Company • • • • •
Entrenched management Inertia Fear of change Bond/Equity market concerns (Q2Q) P/T Director oversight (vs. “skin in game”)
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Global Leadership Challenge Ten Deadly Cultural Sins 1. Overestimating “American Globalization”
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Global Leadership Challenge 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 2008
Global Leadership Challenge Ten Deadly Cultural Sins
2. Taking speaking English for granted
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Global Leadership Challenge Ten Deadly Cultural Sins 3. Failing to perceive your own culture
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Global Leadership Challenge
“Culture hides much more than it reveals and, strangely enough, what it hides, it hides most effectively from its own participants.” Edward T. Hall
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Global Leadership Challenge
“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
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Global Leadership Challenge Ten Deadly Cultural Sins 4. Not standing in your host’s shoes
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Global Leadership Challenge 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
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Global Leadership Challenge Ten Deadly Cultural Sins 6. Not investing in relationships Procurement, price-driven, “objectivity vs. only doing business with people you know!
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Global Leadership Challenge Ten Deadly Cultural Sins 7. Jumping immediately from vision to action
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Global Leadership Challenge Ten Deadly Cultural Sins 8. “Shock and Awe”
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Global Leadership Challenge Ten Deadly Cultural Sins 9. Selecting the wrong people
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Global Leadership Challenge Ten Deadly Cultural Sins 10. Everyone wants to learn - no one wants to be taught.
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Global Leadership Challenge
Transformational Global Leadership
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Global Leadership Challenge
“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
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Global Leadership Challenge
“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
2008
Global Leadership Challenge Leaders Shaping Vision
Leaders must: Understand employees and reflect their needs and values
Help shape employees’ values and aspirations
“sweet spot” – successful vision 2008
Global Leadership Challenge
• Emotional Intelligence • Primal Leadership • Social Intelligence
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Global Leadership Challenge 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.
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Global Leadership Challenge Emotional Intelligence - EQ • Empathy: sensing others’ emotions, understanding their perspective, taking active interest. • Relationship management: inspiring, influencing, guiding, change management.
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Global Leadership Challenge 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. 2008
Global Leadership Challenge 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.
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Global Leadership Challenge
EQ + SI + Cultural IQ
RFT*
=
New Transformational Global Leader
*Rapid Financial Transformation 2008
Global Leadership Challenge
The New Global Leader must balance the critical elements of Emotional, Social & Cultural IQ – with the unrelenting drive for timely financial performance & improvement. 2008
Global Leadership Challenge
“Not everything that matters can be counted, not everything that can be counted matters.” Albert Einstein
“You can’t number-crunch culture.” Jack Welch
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Global Leadership Challenge
“We think too much. We feel too little.” Charlie Chaplin
2008
Global Leadership Challenge
Thank You!
www.simonassociates.org
2008