Practical Applications and Recommendations Global Reality_9 pptx

Developing Leadership in Global Organizations 215 of leadership but also the context-specific and variable ‘‘hows’’ of leadership. However, this is easier said than done. The reality is that a lot of money and time are invested in leadership devel- opment with limited ROI. Given this track record, what should organizations do? For leadership development efforts to deliver the desired results, a successful comprehensive and truly global approach to organizational leadership development should: (1) foster an understanding of the uniqueness of experience and environment, (2) maintain a focus on cultural heritage and organi- zational future, and (3) adapt the leadership model and approach. Understand the Uniqueness of Experience and Environment Just as streetwise business operators get to know the customer and sophisticated organizations invest in consumer insights, leadership development specialists need to get to know who the participants are. Because people are different around the world, organizations need to look beyond their current hypotheses and explore the causal factors that shape how leaders develop, with the purpose of constructing an effective approach to leadership development. Four elements that need to be considered when understanding the uniqueness of experience and environment include the leaders’ unique backgrounds, their thought processes, their home societal structures, and the dominant religion of their development cultures. Leader’s Unique Background Leadership development specialist need to scrutinize and discover why the differences exist and understand their assumptions as they influence how people think and behave and thus grow in their leadership capability. This requires leadership development specialists to set aside existing notions and constructs about their specialties while they probe the local markets to understand who the people are and how they develop. These three fundamental questions need to be contemplated in the exploration process: 1. Why do leaders learn? 2. How do leaders learn? 3. What do leaders need to learn? 216 Going Global When addressing these questions organizations should con- sider individual leaders or tightly aligned markets rather than contemplating universal answers for leaders on a global level. Two risk factors are involved in this practice: (1) this activity is heavily reliant upon anthropology and sociology, a skill set not tradition- ally taught or practiced in organizational leadership development departments, and (2) without broad international experience as an expatriate including significant experience in various coun- tries, it is difficult to set aside individual experiences and be able to question why things are as they are in a particular culture—let alone draw conclusions that affect leadership development. For example, in the midst of a major leadership development effort, a leading telecom company with an operating office in one of the emerging markets realized that the leaders in the program came from numerous backgrounds. In this particular operating company, they had 35 different nationalities and all but 1 nationality was working outside of its home office. Their leadership development specialist, who had extensive expatriate experience, recognized this reality and hit the pause button to explore what this meant for how they lead andwhat it will mean for how leaders will develop. They explored the three fundamental questions mentioned earlier and concluded that they needed to take a deep look at their leaders’ backgrounds and adapt their global program accordingly. Thought Process Human cognition is not the same all around the world, and at the most elementary level people in the East and West have different basic thinking approaches. Psychologists have assumed universally that Westerns and East Asians have maintained very different systems of thought. For example, Westerners have a strong interest in categorization, which helps them to know what rules to apply to the objects in question. And they rely on logic to play a role in problem solving. Conversely, East Asians attend to objects in their broad context and how they relate to one another. The need to explore locality in relationship to leadership is apparent through this description of the Western and Asian basic thought processes. Leadership development specialists would be Developing Leadership in Global Organizations 217 wise to consider the system of thought as they explore the leader’s background. This understanding will aid organizations’ efforts to maximize the investment and results from leader development activities. For example, if a company that is based in China and has operating offices throughout Europe and North America decides to export its home market leadership development program to all of its global leaders and managers, it needs to allow for the different systems of thought in order to leverage the natural abilities and thinking processes of the leaders in Europe and North America. Social Structures Social structures are also distinct between various cultures and environments, and they do affect how a person develops as a leader. The way in which groups relate to each other is based on relatively enduring patterns of behavior and relationships within social systems. Norms become embedded into social systems in such a way that they shape the behavior of leaders within them. In and of themselves, social structures are very complex. This complexity intensifies when attempting to cross cultures or integrate various social norms and patterns. Religion As a developmental consideration, religion is more than an approach to spirituality. Unlike the Western idea of the world being divided into two comprehensive domains—one sacred and the other profane—on a global landscape religion presents a common quality for societal character. Religion is a communal system of belief focusing on a system of thought from which come moral codes, practices, values, institutions, tradition, and rituals. Leadership specialists need to understand the broader impact of ‘‘religion’’ on people as members of society. Religion shapes personal practices and group rituals stemming from shared con- viction; it is a ‘‘way of life.’’ Unlike the homogenous impact of religion when operating in a single market or across European and American markets, on the vast global front the breadth of religious impact on how leaders develop needs to be sought out 218 Going Global and understood. Additional thoughts to consider when exploring a society include: • What is the societal (and parental) support for development and why is it as it is? • What are general beliefs and what stories shape them? • What are the learning habits and why are they as they are? • What is the educational model and approach? • What does an individual’s experience actually include? • Individual’s cultural background and what created the culture. • What is the perceived value of learning to local culture? • What developmental patterns existed throughout ancient and modern history? • Where is the culture in its current life cycle? • How were the potential leaders parented and how does author- ity act? • What types of noneducational activities are relied on in the local culture that build leadership habits? Leadership development specialists need to have the skills of great connoisseurs; they need to become fully acquainted with and appreciate the differences between the various cultures. Over time, they will develop a taste for both views—the home office and their leaders’ backgrounds. Maintain Focus on Cultural Heritage and Organizational Future In addition to understanding the uniqueness of experience and environment, it is the role of the leader development specialist to understand the backgrounds, to remove barriers, and to build a bridge between the cultures of the leader and the organization so that they can graft together the local identity with the multina- tional company’s environment. Success resides in knowing both sides and how to connect them. One of the more important elements in grafting the leader’s identity with the company’s environment is for the development specialists to understand the depth and development of potential leaders’ societal back- grounds. This will facilitate bridge building and help leverage the most effective development approaches. Developing Leadership in Global Organizations 219 Most global organizations hold the unconscious belief that potential leaders: • Are educated, most likely through public education, in a class- room that utilized active learning • Have an understanding of the idea of organizational life as it is constructed via extracurricular activities at the elementary level and supported in most social interactions • Have a consistent underpinning stemming from the influence of a Judeo-Christian ethic absorbed through educational pro- grams and cultural rhythms • Will pursue and be supported to develop as leaders • Have an understanding of operations from their first jobs held • Operate from tightly aligned commonalities with coworkers in their organization But when the company explores the global settings, these unconscious beliefs most probably do not align with those of the regional cultures. Theories or hypotheses about environment and background need to be tested through behavior and then modi- fied depending on the outcome of the testing. The uniqueness of individual experiences creates the uniqueness of personality. An individual’s hypotheses about his or her environment not only are a basis for describing the environment but also seriously influence the way the individual behaves toward the environment. Suc- cess in leadership development comes as organizations are able to graft the environments and backgrounds together. Attention needs to be given to maintaining focus on the cultural heritage of the leader and the organization’s future while bringing the two together. Adapt the Leadership Model and Approach Finally, leadership development activities should be largely influ- enced by society and the dynamics of the current workforce. Thus, the next step after compiling the leader’s dossier is to ana- lyze the existing leadership development activities and discover how they can be modified or adapted to maximize the investment and leadership potential in the various markets. This is the point 220 Going Global where organizations should understand the universal components and explore the factors that need to be understood in order to ‘‘localize’’ and shape the leadership model. Operating companies around the world express that their home offices have difficulty in that they have researched and invested heavily in current programs, yet the field offices know that thee programs need to be modified in order to have a greater impact. If a global organization is serious about developing leaders, it will need to recognize the priority of this approach and make the necessary adjustments. Middle East Case Study When it comes to leading in the Middle East, people often ask, ‘‘Is it any different than leading in another country or region?’’ The answer is a resounding ‘‘Yes!’’ For anyone working in the Middle East this is a question that cannot be ignored, as it is foundational for business success. Looking around the globe it is clear that leadership initiatives are not the same, nor should they be. It is a grave mistake to think that you can import and export ways of leading in the same way that countries import and export oil. Successful leadership development requires that you first iden- tify the rhythms and nuances that are present in that culture. Next, focus on understanding the leadership need(s), and estab- lish where they originated from and why they are as they are. Only then should you put energy into seeking the solution of how to develop the leaders. This is especially true in the Middle East, where people are mistakenly importing Western approaches to leadership development without giving consideration to the local cultural rhythms. Consider a recent example from Beirut, Lebanon, where a training course in time management was being conducted to rectify the notorious problem of arriving late for appointments and events. On the surface, it is easy to think that all time management skills around the world are similar. So the western training company reached into their toolbox to fix this perceived problem. In the midst of their training, the solution was, ‘‘if you make better use of your time then you will be on time.’’ Developing Leadership in Global Organizations 221 Knowing Lebanese culture, I found this to be laughable. Even more hysterical ishowthe trainerproceededtoteach the Lebanese managers to use their time. The solution was to turn off mobile phones and only answer calls for two hours each afternoon. At that suggestion, one could see the Lebanese managers’ eyes glaze over. Why? This development solution had a lack of understanding of the local culture and it was addressing a problem that was not really there. In Lebanon (and most of the emerging markets), the mobile phone is the dominant method of communication and a central component of life—they never turn off or ignore their mobile phones. This lighthearted example is meant to emphasize what can happen when there is a lack of understanding that situations and cultural rhythms are different and that leadership development solutions need to be rooted in the local society. Why do people come into the Middle East (or for that matter any part of the world) and propagate their solutions without an understanding of the local market and needs? At the time of my research, there was a deep sentiment that Western leadership development solutions would not work in theMiddleEast,yetmanypeoplewerestillreadingWestern- oriented business books and attending Western-based leadership seminars in search of success even though the content could not be fully implemented. Why would this be? In order to develop leaders successfully in the Middle East, you have to understand the culture, you have to know what influences it, and you should lead accordingly. When addressing the Middle East, it is critical to look into its history and notice the rich culture and massive achievements. Successful leadership development in the Middle East (ME) requires an understanding of the elements that influence the society. This case study shows an ME-specific model of leadership development called the ‘‘Patriarch Model.’’ If applied in the right context, this model will be the framework for successful leadership development in the Arab world. It is important to note that there is no such thing as ‘‘one’’ Middle East or Arab world. This region is made up of more than 15 countries, half a dozen different religions, and countless regional- and tribal-specific ways of doing things. So even in a tightly aligned geographical region, 222 Going Global there are differences to be considered. Although there are many differentiators, a quick look across the Middle East will reveal a few commonalities. This case study utilizes the commonalities in identifying the elements of influence. Elements of Influence in the Middle Eastern Society The most important thing to do when leading in the Middle East is to become familiar with what has and does influence the culture. The following influences—the family, Islam, family business, and colonialism—have shaped Arabic business into what it is today. Likewise these elements shape the way people develop as leaders and should be apparent in a global organizations program. Influence of Family: Patriarchal and Loyal Unlike in the West, the influence of family in the Middle East is very strong and has a tremendous impact on how people lead and what employees are looking for in their employers. At the very least, organizations need to be aware of this influence. Why does the family dynamic have such a powerful influence in the corporate settings? Because the Arab world is a patriarchal society and family focused. In this society, the father is the central figure and he wields a great amount of authority. In the traditional Arab family home, there is a healthy respect and reverential fear of the father as the family looks to him for leadership. It is also typical that this leadership will pass on to the eldest son. The patriarch in the family understands he has the responsibility for the family or tribe and does not take it lightly. The business environment is a facsimile of this family structure. Employees look to their boss for strong leadership and expect to experience what they would at home. At the same time the boss embraces his responsibility for the stewardship of his employees. IntheArabhomeitiscommontohavecentralizedpower; however, in the business world this often causes problems and creates blockages for the work. The bottlenecks in the decision making, the minimal delegation, and the vast amount of task- oriented leadership are by-products of the misused patriarchal patterns. The influence on the patriarchal family structure can be seen in the structure of organizations in which top-down Developing Leadership in Global Organizations 223 authority is the norm. The natural outcome of centralized power is control, and this controlling mentality will limit a leader’s ultimate influence and success. The tight locus of control and power that is experienced in the business context comes from mimicking the home style of leadership. For an organization to develop leaders in the Middle East, it is essential to understand where these patterns come from and why they exist; this understanding is foundational to success. Group Orientation and Relationships There is also a strong group orientation in the Middle East. An Arab family is a very tight-knit group of people and the extended family is the locus for most social interaction. They live life out as a group, so much so that it is quite common to find cousins as best friends. How does the group orientation work in a patriarchal setting? On the surface these practices seem to be paradoxical but in reality they work well together. Even though legitimate authority rests ultimately on the apparent absolute power of the patriarch, he nonetheless takes account of family opinion when making decisions. Even with his given authority, the good patriarch creates a consultative environment where the group orientation supports a group approach to making decisions. The business context is both hierarchal and consultative. This consultative structure offers the basis for understanding how decisions are made in the Arab world. It is fundamentally different than in the West, which primarily endorses individual decision making. The family takes an active role in deciding whom to marry, where to work and live, and even what type of car to drive, and so forth. Stemming from the family nature of decision making comes the consultative approach to decision making in Arab orga- nizations. Westerners working in the Middle East often incorrectly criticize their Arab counterparts for not making a decision; they do not understand that the reason for this behavior is based on historical decision-making rhythms. They are accustomed to being part of a group decision-making process and then looking to the patriarch to make the final decision. 224 Going Global The impact of relationships is also felt in the way that business is carried out. In the Arab world, business is based predominantly upon relationships. In this highly relationship-oriented society each family works toward the long-term accumulation of position, prestige, standing, relationship, and respect. Honor and Loyalty Because of the relational society comes an intense focus on loyalty. It is expectedandoften guaranteed as leaders surround themselves with subordinates that they can trust. Another difference in the Arab world is the practice of giving and preserving honor. The influence of the family is central to understanding the Arab manager’s use of time during the working day. When a close family member appears at the office of even a very senior manager, it is regarded as improper for the demands of organizational hierarchy to take precedence over the obligations due to family. In other words, he is choosing to give honor to his family before giving priority to his work. Leadership is a complex phenomenon in Arab organizations and is related to the ideal of honor. This is challenging concept for western-oriented managers because the West is a guilt-or- innocence culture where something is either right or it is wrong. The Arab world has a very different focus: it is an honor-or-shame culture. These two very diverse orientations generally shape the way work is conducted. Influence of Islam When trying to understand the business culture and provide leadership in the Middle East, it is important to take into account the influence of Islam. This is not speaking of the influence of the local mosque, but the cultural underpinning of Islam in society. Similar to the way the West has been shaped by the practice of Christianity over centuries, the Middle East has become what it is from the influence of Islam. In the Arab world it is believed that Islam is more than a religion that concerns itself merely with the spiritual aspects of life. Islam is literally a way of living that embraces the spiritual, [...]... strategies should address the complexities of managing an increasingly diverse and global workforce Global leadership is more than the popularized concepts of thinking globally, appreciating cultural diversity, building partnerships and alliances, and sharing leadership It is about maximizing the potential that lies in each and every location that a multinational corporation operates from Even though,... balance the universal knowledge with local needs This includes (1) understanding the uniqueness of the leaders’ experience and environment, (2) maintaining focus on cultural heritage and organizational future, and (3) adapting the global leadership model and development approach to be harmonious with the cultures of the potential leaders Global organizations are not ignorant about these points; rather they... of understanding where they are working, they just plow forward and commit serious faux pas What they need to do is to begin with learning what influences the society In the case of the Middle East, this means understanding the influence of the family, Islam, family business, and colonialism Given this basic understanding the ability to develop leaders greatly improves Following the understanding of... strong in Islam and throughout the Arab world This strong cultural element pours into the business environment And it must be understood in order to successfully understand how leaders develop in the Middle East The employees’ value and identity in large part come from the relationship network of which they are part Time Western-oriented people struggle with understanding why time is handled as it is... Middle East, time is a ‘‘seasoned adult.’’ The idea is that time usage and understanding is comparative to the age of a country or region—just as to a child, time holds a different value than it does 226 Going Global for an adult A small child always wants things now and an adult learns a new set of standards related to what is and is not acceptable concerning the consumption of time If you say something... with him to observe work and the father (leader) in action After a period of observation, the father will discuss with the son what is happening The focus is on developing the way the son thinks and what he sees When the father is comfortable with the son’s thinking patterns and behaviors, he will begin to give him responsibility and the opportunity to demonstrate his ability and value Simplifying how... legacy includes a strict adherence to the chain of command, and adherence to secular systems These systems somehow conflict with the local patterns and customs There is a dichotomy between adopting Western models and the desire to retain culturally aligned approaches The Western approaches appeal to the perception of prestige, but are they relevant and appropriate? If an organization wants to succeed... leadership in global organizations is to understand the local influences and adapt the leader development model accordingly to maximize on the potential Conclusion Parenting is a conservative practice, and most rely on the same practice that their parents used, even if they know it may be out of date Likewise, organizations tend to be conservative when they attempt to develop future leaders and follow... in developing leaders in the Middle East, it is imperative to pause and understand that the various influences are interrelated and do not operate separate from each other One must see what this means first in terms of how business is conducted, what the needs of the workforce are, and then apply it to leadership development 228 Going Global The ‘‘Patriarch Model’’ of Leadership Development Originally... admiration for Western ways, global organizations will be well advised to leverage the local culture and combine it with their home office practices to create a globally significant program In order to maximize the return on investment in leadership development and to capitalize on the latent leadership potential in all markets, organizations need to break from the centrally created model and learn to balance . increasingly diverse and global workforce. Global leadership is more than the popular- ized concepts of thinking globally, appreciating cultural diversity, building partnerships and alliances, and sharing. development specialist need to scrutinize and discover why the differences exist and understand their assumptions as they influence how people think and behave and thus grow in their leadership capability maintain a focus on cultural heritage and organi- zational future, and (3) adapt the leadership model and approach. Understand the Uniqueness of Experience and Environment Just as streetwise business