Global Mindset Provides Competitive Advantage

Image-of-globe-for-global-mindest

Research proves the rapidly-rising importance of the Global Mindset.

A Global Mindset is critical for success in business and success as a leader and is the one skill you must master for competitive advantage today. One skill that applies across every industry and every marketplace. How do you, as a leader, and your organization rank in mastery of the Global Mindset? Do you know?

Mastery of the Global Mindset.

I’ve talked about this before. Data from the GMI Index study, research published by CultureWizard in December 2017 shows mastery of a Global Mindset drives competitive advantage in business. Among the most important findings from the GMI Index Study, are three, which underscore the rapidly-rising importance of intercultural skills:

  • More than 82 percent of respondents rated the international component of their companies’ business as “extremely significant.”
  • Nearly half (45 percent) spend more than half their time on international business activity.
  • Almost one-quarter (24 percent) spend more than 75 percent of their work time on global endeavors.

“The Global Mindset Index (GMI) demonstrates that companies which actively support their employees gaining a Global Mindset are far more likely to achieve their business objectives than those that don’t. With almost 1,400 participants representing global enterprises from every region of the world, the respondents indicated that their work involved significant interaction with others in the global arena,” writes Charlene Solomon, of CultureWizard.

What is Global Mindset?

According to the GMI Index Study, Global Mindset is defined as  “the ability to recognize and reflexively adjust to cultural signals so that your effectiveness is not compromised when dealing with people from different backgrounds.” According to Dr. Mansour Javidan, Garvin Distinguished Professor at Thunderbird School of Global Management at Arizona State University, essential elements of a Global Mindset include:

•   Intellectual capital: Global business savvy, cognitive complexity, cosmopolitan outlook

•   Psychological capital: Passion for diversity, a quest for adventure, self-assurance

•   Social capital: Intercultural empathy, interpersonal impact, diplomacy

“Leaders who have a high level of Global Mindset are more likely to succeed in working with people from other cultures, he writes, in an article for the Harvard Business Review. “Leaders with a strong stock of Global Mindset know about cultures and political and economic systems in other countries and understand how their global industry works,” he continues.

Of course, it’s important to point out that mindsets can apply to both individuals and organizations. Leaders who possess a Global Mindset can, and do, encourage their teams to adopt a Global Mindset. Companies that embrace Global Mindset tend to promote those employees who demonstrate mastery.

As the GMI Index Study points out, the same organizations are twice as likely to have highly motivated multicultural teams and tend to experience fewer of the cultural missteps, which can damage productivity and business relationships. In these instances, the company, and its stakeholders benefit from the adoption of the Global Mindset.

Globally-minded businesses have a competitive advantage over companies with a more narrow focus. These firms can develop products and services that meet the needs of customers and prospects located across the world. But competing in a global marketplace is only one of the reasons adopting the Global Mindset is so crucial today.

An organization that embraces Global Mindset can identify emerging opportunities earlier than its competitors. It benefits from having a more sophisticated understanding of the tradeoffs between global standardization and local adaption, faster and more effective new product introductions, and facilitates sharing best practices and activities across cultural boundaries.

The Global Mindset Inventory (GMI)

At this point, you may be wondering how to move forward in mastering the Global Mindset–for yourself as the leader, and for your team or organization. I work with clients located in countries across the globe. I recommend, and use, the Global Mindset Inventory, which is a psychometric assessment tool that measures and predicts performance in global leadership. Developed by the Thunderbird School of Global Management, the Global Mindset Inventory is a web-based survey consisting of seventy-six questions that measure your Global Mindset in three capitals and nine competencies.

After you take the GMI assessment, you will receive a scored report, documentation with feedback, and recommendations and suggestions to improve your Global Mindset. You can use the GMI tool for yourself as an individual and for your staff. You can also bring in a consultant to conduct a workshop to help you and your colleagues identify ways to master the Global Mindset.

As I have said in the past, the Global Mindset isn’t just about cross-cultural communication. It’s about understanding not only who, but also what and how to do business successfully across all borders, regions, and perspectives. And given the state of our world today and its burgeoning global marketplace, mastering the Global Mindset is not only vital–it is the one skill you must master for competitive advantage today and in the days to come.

Contact me for more information about mastering the Global Mindset. And join my online global leadership community for valuable tips and training on conducting business internationally.

A version of this post was first published on Inc.

Photo credit: Simone Busatto on Unsplash

3 Steps to Globalizing Leadership Development Programs

In January I wrote an article for Training Industry that addressed the importance of globalizing your leadership development programs. If you’re doing business in a global environment, you probably already know what is needed: Leaders with a global mindset who can lead international teams, conduct business across time zones and borders, think creatively, communicate cross-culturally, and leverage new technology.

These aren’t skills many of us learn naturally in the American workplace. More often, we develop them through trial and error, expatriate assignments, or customized training curricula. Moreover, research shows that many leadership development programs don’t prepare leaders with the skills they need to excel in a global environment—which is a puzzle, considering that increasing productivity and entering new markets top most companies’ wish lists.

Having said all of that, I’d like to share three essential steps that will help you globalize your organization’s leadership development program. Click here to read my article, 3 Steps to Globalizing Leadership Development Programs.

Need more information? Contact me.

3 Tips for Launching Corporate Social Responsibility

Corporate Social Responsibility

As the holidays come to a close, many companies all over the world are doing two things: Reviewing their 2017 performance and selecting charities to receive their official nod to holiday generosity. It’s worth asking how many of them have connected the two in developing their 2017 strategies. Corporate philanthropy isn’t just an obligation, after all; along with helping others, corporate social responsibility (CSR) offers an opportunity to inspire employees and attract new customers.

A few decades ago, no one expected companies to play the Good Samaritan. But in today’s era of “compassionate capitalism,” it’s almost de rigueur for companies to demonstrate some level of altruism, whether it’s promoting green initiatives, improving their local community, or lending their support to a global cause. Corporate social responsibility has become so hardwired into our business culture, in fact, that enterprise brands can look stingy and uncaring if they lack a robust program.

Of course, there’s something else typical of big corporations today, and that’s global expansion. And the intersection of global market entry and CSR can be a tricky one to navigate, given the different cultural priorities regarding these programs. Leaders often follow the saying “people, planet and profit” when it comes to investing in CSR but that can be a bit too simplistic on an international scale. To launch an effective program, global leaders must consider the following factors in their approach.

Figure out which buyers care about your initiatives.

While there’s been some debate on how profoundly CSR programs influence buyers, one Neilsen report showed in Italy Millennials, and Generation Z would pay more for products that were organically grown and ethically produced – And this is the trend globally. While retail slows down in Europe and North America, consumers are looking towards those products which focus on personal wellness and sustainability. In the developing world, it is still essential to ensure research and development, manufacturing and other production considers the community’s needs. Government officials and locals can block the success of global entry if specific environmental and societal criteria are not met.

Design a strategy that will ignite your workforce.

The Gallup Report for 2017 shows only 15 percent of the workforce engaged and actively engaged— a disheartening statistic. The data states that manufacturing and production are the primary cause of a lack of morale. A Corporate social responsibility program may interest your customer base, but it could indeed act as a morale booster for your workforce. The importance of a sense of meaning at one’s job has been proven time and again – and participating in a global mission can be even more galvanizing. This sense of meaning is extraordinarily powerful for remote teams, as sharing the same purpose can deepen connections between far-flung colleagues and dispersed offices.

For instance, each region might contribute toward a different local cause, such as rebuilding from a natural disaster in a struggling community – everyone will post photos and updates to the same internal site to educate and inspire others. Another option is having everyone adopt the same internal initiatives. Going green is obviously a popular one; offices can hold contests on reducing waste and packaging materials, exchange ideas on setting up carpool systems or show off their new energy-efficient lighting. Employees in Hong Kong who ordinarily might never interact with employees in Toronto will enjoy common ground that ultimately fosters deeper engagement for everyone.

Shift from CSR to Social Impact.

Particularly in today’s political and environmental climate, we need to ensure our efforts are not abstract. In touting CSR as making a social impact, everyone can relate. Leaders become advocates; employees care about making a difference. Alice Korngold wrote, “A Better World Inc.,” where she talks about how companies can make a positive social impact where governments cannot. We’ve seen this recently with the Paris Accord Agreement where hundreds of corporations have said they will uphold its principles even during the political debate.

Sometimes companies must commit to CSR that holds a personal significance for their partners. Ultimately every global company should consider the impact of corporate social responsibility initiatives on its workforce, its customers, and its communities before making a significant investment. The wrong program can go ignored by both employees and customers.

But the right program can put a halo of appeal around a brand image, inspire your workforce—and make a real global impact at the same time.

For a list of the top 20 CSR programs in 2017 and the companies they belong to, see here

Image Copyright: trueffelpix / 123RF Stock Photo 

A version of this post was first published here. 

5 Traits That Make Women Better Global Leaders

More and more women are rising up the ranks to lead countries and global organizations worldwide. In fact, according to a Pew Research Center study, published in 2015 and updated in 2017, since 2005, the number of world leaders who are women has more than doubled. A fact that is not surprising since women possess certain traits that make them better global leaders.

Having said that, a lot of work still needs to be done. In the U.S., women hold less than 5 percent of the C-suite top spots. And, in regions like Latin America or Asia, women leading large organizations is pretty uncommon.

But, in my work helping women around the world develop advancement strategies, I’ve noticed traits, unique to women, that set them up to be influential leaders–particularly in a global environment.

Here are the top five traits women possess that make them strong global leaders:

1. Women empathize.

Being able to wear other people’s shoes is very important when leading in a global environment. Leaders need to try to understand different perspectives and empathize to be effective.

While I’m always the first to teach the premise that agility and empathy are not exclusive to either gender, it’s hard to ignore the research. An in-depth white paper by Caliper states:

Women leaders also were found to be more empathetic and flexible, as well as stronger in interpersonal skills than their male counterparts.

“These qualities combine to create a leadership style that is inclusive, open, consensus building, collaborative and collegial,” said Herb Greenberg, Ph.D., President and Chief Executive Officer of Caliper.

2. Women communicate.

Communication is key to effective leadership, particularly when it comes to communicating across cultures, write Deborah Blagg and Susan Young in an article for Harvard Business School’s (HBS) Working Knowledge. And, according to HBS professor Nitin Nohria, author of Beyond the Hype: Rediscovering the Essence of Management, communication is the real work of leadership. “Great leaders, he notes, “spend the bulk of their time communicating, and they know how to employ all three of Aristotle’s rhetorical elements.”

Multiple studies over the years have consistently indicated that women are better communicators than men. Some suggest that women use many more words than men (anywhere from 10,000 to 20,000 words a day to a man’s 5,000 to 10,000). One study, by the University of Maryland School of Medicine, attributes this to female brains possessing more of the “language protein.”

3. Women listen.

The female leaders I’ve worked with seem to have an innate skill for listening. When one woman is sharing a problem or challenge, the others seem to give their undivided attention instantly. They listen, ask some questions, and then share their thoughts.

Listening is a skill that’s necessary and appreciated across all cultures and particularly useful when leading teams of people from different backgrounds.

4. Women collaborate.

When managing cross-cultural teams, leaders need to understand that team members work, assess problems and come up with solutions differently.

Women seem to genuinely enjoy working with others. They enjoy learning new perspectives and coming up with solutions together. The women in my workshops always ensure each person in the room has a voice and is a part of the conversation. This means that everyone’s opinion and skills are included, allowing for stronger and more creative outcomes.

5. Women learn.

As I mentioned, women enjoy learning about other’s perspectives. They’re also very interested in discovering new ways to improve upon themselves and sharpen their skills. This focus on development makes women self-aware–crucial for both improving leadership skills as well as emotional intelligence.

McKinsey and Catalyst found that more gender balance at the top produces better financial results than those with the lowest representation of women board directors. However, there are still many challenges that keep women from leading global teams and companies. But as we continue to chip away at these barriers, both internally and externally, our organizations will only become stronger.

Do you need help creating gender balance on your team? Or, are you a woman who is hoping for a leadership position in your organization? I can help. Contact me.

 

A version of this post was first published on Inc.

Photo Credit: Elwynn/123RF

Traits of Global Leader Part 2: Be Mindful

In my recent post, Traits of Global Leader Part 1: Know Thyself, I introduced my theory that great global leaders have two essential sets of traits: awareness of self and awareness of others. That first post explored the awareness of self, including understanding your personal brand, sticking to what you believe, and how these two traits affect public perception of you as a leader.

Now we’re going to move on to awareness of others. This doesn’t mean that great leaders are universally liked. As a recent Inc. article on leadership explained, “Great leaders aren’t always the most likable people. In the long run, great leaders recognize that their job is to get people to do things they might not want to do, in order to achieve goals they want to achieve.”

In a nutshell, your goal as a global leader should be to earn respect by doing the right thing and making the hard decisions that benefit your organization. At the same time, you don’t want to alienate your employees — so be sure to demonstrate empathy and understanding, even while reaffirming your role as a strong leader.

Of course, many leaders assume they’re already aware of others in every way that matters, but there are two practices that can deepen every leader’s ability to connect with others.

Listen to People

Plenty of leaders like to talk, but the best leaders realize the value in listening. The problem is, a huge part of being a good listener is acknowledging you don’t know everything, recognizing when you don’t know something and allowing someone else to fill you in—a tall order for many in leadership roles.

Once you can get over the fact that you’re not always the most informed person on a particular subject, you might be surprised by how much you learn. There’s a less obvious reward too: the enhanced respect that comes from giving your employees an opportunity to shine.

This is especially important when critical or difficult decisions must be made. Sure, you could just make the decisions yourself, but by opening up the conversation to others on your team you can gain valuable insight and discover fresh angles. More importantly, you give your employees a chance to be a part of the decision-making process, which recognizes their value and allows them to become invested in the outcome.

As TV host Larry King once said, “I remind myself every morning: Nothing I say this day will teach me anything. So, if I’m going to learn, I must do it by listening.”

Broaden Your Reach

When was the last time you talked to an entry-level employee or visited a far-flung office or division? Traveled around to store locations? Rolled up your sleeves to help with a small project? To many employees in your organization you may just be a name at the top of an organization chart, or the office where major decisions are made – and that needs to change.

Great leaders are more than just a name. They’re a symbol and a source of encouragement, stability and expertise for employees. So don’t hide — get out there and meet your people and get a taste of their daily lives at work.

Best Buy’s CEO, Hubert Joly, epitomizes this notion. When he took over as Best Buy’s CEO in 2012, he spent a week working as a floor employee at a Minnesota Best Buy store, helping customers, restocking shelves and going on Geek Squad calls.

I had a similar experience when I started my project with the global, Swedish-owned furniture giant, Ikea. They asked me to work for two days in a store to understand fully what an employee’s day was like. I worked the cashier, lugging furniture in the warehouse, in floor design, sales, and in the back offices. It was a phenomenal experience and taught me a lot about Ikea’s company culture.

I think Kasper Rorsted, head of global manufacturer Henkel, perfectly stated the importance of being available as a leader in a recent interview with McKinsey. He said: “I am convinced that a visible and accessible leadership style is most effective. My door is open; I encourage colleagues to call me directly. Our employees know who I am and what I’m doing. I eat with employees in our canteens whenever I am traveling or here at headquarters. You cannot run a global company from your desk. That’s why I spend around 170 days per year abroad, meeting employees—from top executives to young high-potential individuals—as well as customers and business partners.”

To close this two-parter, I’ll encourage you to remember that everything leaders do has a trickle-down effect. Be mindful of your actions and relationships, because your colleagues and your employees will emulate what you do. Successful organizations need inspiring leaders. Be the confident, self-aware and empathetic leader your employees want, and they will follow your example.

Effective Global, Cross Cultural Meetings

Join us for #GlobalMindsetChat, Thurs 9am PT / 12pm ET / 18:00 CET

This week’s topic: Effective & Productive Global, Cross Cultural Meetings

by Evelyn Eury @SageStrategist

Pitfalls of Global, Cross Cultural Meetings

Global meeting planning across cultures has many of the same pitfalls as traditional meeting organizing but is complicated by the cultural nuances of different offices, local customs and professional yet, culturally biased viewpoints. The savvy cross cultural meeting planner understands the cultural challenges and plans for them accordingly. In an August 2011 Gigaom.com article, Gary Swart pinpoints the first problem of planning and urges global leadership to make good decisions based upon analysis. He introduces a truth most managers already know: “managers spend between 30 and 80 percent of their time in meetings and more than 50 percent of them consider many meetings to be a ‘waste of time.’” (Swartz, August 28 2011) He asserts that effective meetings are rendered possible when planners first ensure that the event is vital to hold, carefully create an itinerary to be followed and that outputs should be evaluated post-haste in order to rate successfulness.

Challenges of Cross Cultural Virtual Meetings

Remote international meetings across cultures require all of these considerations but also necessitate cutting edge technology that allows real-time communication, the sharing of documents and data virtually, and ideally video to increase one’s ability to read other meeting participants non-verbal queues. Virtual meetings with international offices can also produce other hiccups: such as language barriers, divergence in availability due to working hours, varied holiday and leave schedules, and cultural nuance that impacts meeting participants level of comfort in speaking with other employees. New global, virtual meeting research shows that the number one barrier to global meetings across cultures are time-zones. Next comes lack of consistent moderation and cultural misunderstanding due to the inability of reading non-verbal cues.  In this case, meeting dates and time must be carefully selected in order to increase attendance, allow for translators where necessary and leadership must be aware of cultural variance in order to make all parties relaxed in communication style.

Questions for #GlobalMindsetChat, Thursday 9am PT / 12pm ET

Q1.  Should companies rely on internal translators to aid in meeting discussions? #GlobalMindsetChat

Q2.  Do you think it is more effective to work with a third party Translation Services vendor?  Any recommendations? #GlobalMindsetChat

Q3.  Do you think leadership should devise international office Holiday Schedules based solely on cultural sensitivity or also consider business needs? #GlobalMindsetChat

Q4. How does your company deal with time zone differences when scheduling meetings? #GlobalMindsetChat

Q5.  How important is cultural nuance when communicating remotely? Is it more or less important than true face-to-face meetings? #GlobalMindsetChat

Q6. If you fail to have cultural experts on staff that can speak to local sensitivities, how would you obtain intelligence to deal with this challenge? #GlobalMindsetChat

What is #GlobalMindsetChat?

Recent studies show that Global Mindset is the key competence leaders urgently look to develop in their workforce today.

Every week, Melissa Lamson hosts the varied and unique #GlobalMindsetChat on Twitter. The only one of its kind, #GlobalMindsetChat provides pertinent information on cross cultural, intercultural, and diversity topics that impact global business and the economy today.

How to join a twitterchat: www.Forbes.com

Global Leadership – Skills Global Leaders Need

The McKinsey Quarterly sited a study where 76 percent of senior executives said they believe their organizations need to develop global-leadership capabilities, but only 7 percent think they are currently doing so very effectively. However those companies who are getting it right in terms of global leadership development and acting as true global players are coincidentally taking three key actions: 1)Diversifying their boards culturally and linguistically, 2)Hiring and promoting from other country locations into top leadership positions (not just from the home country where headquarters is located), and 3)Decentralizing procedures and processes to a variety of locations around the world. For example, Bayer, the German pharmaceutical giant, housed their global IT system at the US subsidiary, not at headquarters in Germany. A seemingly radical move by most traditional expansion strategies.

Skills global leaders need to be successful:
  • Experience living abroad.
  • Cultural sensitivity, collaborative skills and a greater focus on emotional competencies.
  • The ability to accept that a particular situation my not be like anything they are familiar with.
  • The capacity to motivate, influence and enable individuals across cultures to uphold corporate culture and accomplish company goals.
How can leaders develop global skills?
  • Travel often and participate face-to-face in meetings with colleagues from the location.
  • Practice getting comfortable with ambiguity.
  • Be open to new ways of doing things, spend more time listening and less time speaking.
  • Commit to Global Leadership Development programs or participate in seminars.
  • Understand what’s going on-line and use all forms of technology to communicate with team members located globally.

Many say that we are at a leadership deficit in the business world and not only do we need existing leaders to improve their global skills, we need 1000s more truly developed leaders who can think, act and lead globally. Leadership is becoming more and more important in terms of motivating employees, facilitating new innovations, and driving projects forward. Are your leaders and is your organization prepared?

We’ll talk more in detail next month on how to assess and find the right global leaders.

For more information on how to work globally, contact us info@lamsonconsulting.com