Global Mindset Provides Competitive Advantage

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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

Cultivate a Global Mindset For a Better Bottom Line

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The face of business has changed. You may have employees working globally, doing business with people from other regions or countries, or you might be relocating executives across cultures. The fact is, the global industry is the new norm. And your team needs to cultivate a “global mindset.” In today’s global marketplace it is critical for people to efficiently work together across borders and time zones to achieve business success.

Even more, we have a moral and ethical business obligation to be savvy about how the world works. By this I mean we need to be aware of the nuances of political systems, cultural norms, and the psychological mindsets of those whom we do business with and for. Without this savviness, we can’t truly understand the world and what it needs to run successfully.

Still, studies show many leadership programs fail at preparing future leaders with the skills needed to excel in today’s global business world.

What are these programs lacking?

The tools necessary for employees and organizations to cultivate a global mindset. A global mindset describes one that has a genuine desire, knowledge, and the skills to operate effectively in business today. One needs to know how to negotiate with vendors, sell to customers, and lead productive teamwork across regions – often in multiple countries at the same time.

This is just as important as legal counsel, marketing, sales, or a business strategy. Cultivating a global mindset shouldn’t be optional, as it fills a strategic, tactical need of operating in today’s global business. It is just as important as other business operations.

The number one agenda item

The number one agenda item for today’s corporate leaders looking to sustain business success should be finding talent with a global mindset. The team that cultivates a global mindset will be able to:

• Assess new markets

• Understand customer behavior

• Negotiate with vendors

• Secure contracts and commitment

• Navigate cultural nuances

• Build long-term business relationships

• Run complex projects

• Manage high-performing teams

Start cultivating a global mindset with these four tips

1. Get off your computer and get on a plane. As much as we might like to believe that the internet makes experiences like “study abroad” unnecessary, this kind of enriching experience is invaluable for understanding how cultural differences shape business and purchasing decisions. Opening your own mind to the differences among cultures will help you comprehend the kinds of perspectives you might encounter in global expansion, international sales negotiations, or hiring discussions for a new regional vice president.

2. Cultivate a global mindset at every level of the business. While making it a priority starts with upper management, executive staff aren’t the only people involved in implementing a global mindset across a company. Personnel in human resources, public relations, and corporate communications support those executive leaders. Making global mindset a priority for the entire staff, not just those who often travel internationally, will ensure both every day and long-term business actions are sensitive to the needs of other cultures.

3. Play memory. If you’re working in a new region of the world, do some research online and memorize five facts about the country or culture. When interacting with colleagues or business partners, use those facts as ice-breakers. In new sales or vendor meetings, you’ll be credible. And by making an effort to learn about their culture, you’ll gain respect by showing genuine interest in your new associates.

4. Share your experiences. When you travel, read global news and books, or watch international films, and share your experiences. By sharing your experience with friends, families, and co-workers, you plant the seeds of a global mindset within them. Create excitement about learning about the world.

Ready to go global?

Are you—and your employees—ready to go global? You can find out by taking the Global Mindset Inventory (GMI) assessment. The GMI measures Intellectual, Psychological, and Social Capital to reveal both strengths and areas to develop. GMI also coaches individual assessment-takers to interpret their results and create a plan of action. Learn more about the GMI assessment here.

Cultivating global mindset isn’t only a business benefit; the growth and enrichment that comes with cross-cultural experiences can be as personally rewarding as it is professionally. But if your team needs help with global business skills, contact me. I can help.

A version of this post was first published on Lead Change Group 

Image: Antonio Quagliata from Pexels