1. The MBA Challenge: Are They Ready? Mary B. TeagardenProfessor of Global Strategy Connections 2012Dublin, OhioMay 1, 2012

2. The future aint what it used to be. Yogi Berra 3. The Globally IntegratedEnterprisethe 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. State borders define less and less the boundaries of corporate thinking or practice. Samuel J. Palmisano,Chair of the Board, President, and CEOIBM 3 4. Global Supply Chains 4 5. Global Supply Chains Supply chains of 8000 miles or 3000partners based on low cost are notenoughor well manageable. Global demand chains are emergingcustomer focused and customercentric. Information is approaching zero unitcost and infinite availability. Ability to connect with the customer willbe key. 6. Global Organizations 7. Global Organizations Global footprint will no longer be sufficient. Global organizations need new businessmodels, new supply channels, new waysto cut costs and bring products andservices to market: INNOVATION &IMOVATION! Business models are becoming thedynamic battle ground for competing. Brand and its reach will be the primecompetitive thrust. 8. Alliances & Partnerships ValdisKrebs 9. Alliances and Partnerships Collaborating with partners will be keyfor brand reach, smooth flowing supplychains, geographic reach, andinformation access. Models of capitalism and markets arenot all created equal. Business-government partnerships are typicalin many growth markets. Governments might be the business partner! 10. Global Customers 11. Global Customers The bottom of the pyramid (BOP) is theemerging opportunity. Perfect simple designs Low margins and high volumes are key Both depend on customer intimacy. Social responsibility will grow to meetcustomer expectations and align withcommunities where employees live andwork. Besides, millenials expect it! 12. Global Employees 13. Global Employees Jobs are increasingly horizontal, cross-functional, and cross corporate. Collaborating with others throughout the valuechain will be critical. Look outside your job at those withwhom you interface: Learn what they do Know their problems and pressures Know what makes them suceedand help thedo so. Social media is critical to do this 14. The increasing complexity of the globalenvironment, the continued flattening oforganizations and the blurring of boundariesdemand leaders who can collaborate withpeople from all parts of the world and in allparts of the organization. 15. Challenges, Challenges,Challenges. Leadership shortages Organizational challenges Global talent challenges Global engagement crisis Generations and the meaning of work Strategy-talent misalignment 16. Leadership ShortageFor the past 25 years, we have optimized our organizations for efficiency and quality. Over the next quarter century, we must optimize our entire society for innovation.-National Innovation Initiative, Council onCompetitiveness: December 2004 Leadership skills and experience in demand Transcultural knowledge Leadership skills modified for local culture; market Creativity and innovation skills and experience 17. Organizational Challenges Intensifying competition for talent Shifting centers of economic activity Increased technological connectivity Dealing with regional diversity Speed of addressing problems andopportunities- McKinsey Report, 2008 18. Global Talent Challenges 19. Global Engagement Crisis 2010 Hewitt Associate study: Drop in Employee Engagement 46% organizations experienced a decline. 2009 Conference Board Report: Growing Job Dissatisfaction Down to 45% satisfied from 61% satisfied. 2009/2010 Towers Mercer study: Top Performers Feel Less Confident and LessCommitted Engagement level dropped 23%. 20. What is Engagement? Employees willingness and ability to contribute to companysuccess. (Towers Perrin) Staff commitment and a sense of belonging to the organization.(Hewitt) Employees commitment to the organization and motivation tocontribute to the organizations success. (Mercer) Employees exertion of discretionary effortgoing beyondmeeting the minimum standards of the job. (Hay) Creating a sense that individuals are a part of a greater entity.(Best Practices, LLC) Engagement represents the energy, effort, and initiativeemployees bring to their jobs. (Harvard Business Review) 21. GenerationsMeaning of Work Net Generation (born 1980-1995) Ensuring their whole life option stays intact, balance beingtheir absolute foundation for meaning Gen Xers (born 1966-1978) Balancing responsibility and personal freedom,differentiating unique value vis--vis older and youngergenerations Boomers (born 1942-1965) Finding ways to connect their work to the social good and tothe new second stage of middle age they are inventing Veterans (born 1920-1942) Staying deeply engaged, extracting their unique value bymentoring roles linked to the challenges of knowledge work. 22. Global Meaning of WorkCountry Generation XNet GenerationUnited States Recognition & social status Endless, thrilling, intellectualchallengesChina Dream of high paid jobs,Personal independence &frustrated by poorfinancial success; connecteducation, worry about work with the worldstabilityMexicoAttach meaning and identity Get aheadsocial mobilityto education and companyposition; pragmaticconcerns for salary andsecuritybut satisfyhousehold needs firstGermany Heavily influenced by old Persistent unemploymentsocial contract and has given some a cynicalpaternalism; have idealismattitude; tension betweenand hope to gain personal desire for personalexpressiondevelopment and fear of notfinding good workexperience 23. The NeedThe best employers the world over will belooking for the most competent, mostcreative, and the most innovative people onthe face of the earth and be willing to paythem top dollar for their services. Report of the New Commission on the Skills of theAmerican Workforce, 2006 24. TalentKnowledge + Skill sets + Mindsets + Commitment = TALENT 25. StrategiesFocus First Generation Product/Markets Efficiency Second Generation Core Competencies Capabilities Third Generation Talent & Ideas Knowledge 26. Were trying to implementthird-generation strategiesthrough second-generation organizations run by first- generation managers. Christopher Bartlett 27. Global Leaders of the FutureThe Jack Welch of the future cannot belike me. I spent my entire career in theUnited States. The next president of GEwill have to be someone who spent timein Bombay, in Hong Kong, in BuenosAires. We have to send out best andbrightest overseas and make sure theyhave training that will allow them to bethe leaders who will make GE flourish inthe future. Global Explorers, 1999 28. The question is no longerwhether everyone will haveto globalize; the question ishow much, and in what ways. McCall & Hollenbeck, Developing Global Executives, 29. Most multinational companies now do agood job of globalizing supply chains forall their essential raw materialsexcepthuman resources. Players in global markets can no longer afford this blindspot. 30. Global Leaders Need To: Manage dynamic complexity Respond with agility to crisis and opportunity Embrace the democratization of knowledge Engage in wisdom of crowds and socialnetworks to innovate and grow the business innew markets Build global cross-cultural competence as acritical business skill.Source: Rogers& Blonski (2010) The Global Leadership Mindset. Chief Learning Officer. 31. The future is now. 32. Is the World Really Flat? 33. Vrit en-de des Pyrnes, erreur eu-del. (There are truths on this side of the Pyrenees which arefalsehoods on the other.)Blaise Pascal 34. Is the World Really Flat? 35. Is the World Really Flat? 36. Is the World Really Flat?Not according to: The GLOBE Studies The World Bank The World Values Survey The World Economic Forum The Global Mindset Institute 37. Perspective Matters 38. The world is not flatSo What? 39. Your primary challenge is to think globally and actlocally. Global Mindset is the bridge! 40. Global MindsetThe Journey Define GlobalMindset Measure GlobalMindset Develop GlobalLeaders withGlobal Mindsets 41. The Corporate Challenge How do we align and leverage the efforts of our employees around the world who join our company with vastly different life experiences, from diverse cultures and often dramatically different contexts? Mary Teagarden, 2008 42. Global Mindset Studies: Behavior & KnowledgeSkills & Know- HowMendenhallGupta & & ColleaguesColleagues, Bartlett & RhinesmithGhoshal Thought & Role,Perception Structure & Reach 43. Global Mindset Studies 44. Challenge from Global CompaniesWhat are globalmindsets andhow do we buildthem? 45. What Is Global Mindset?A set of individual characteristics that help global leaders betterinfluence individuals, groups,organizations and systems unlike his or her own. Mary Teagarden, 2008 46. The Scientific Challenge Global mindset is in the eye of thebeholder there are individual, group andorganizational level definitions. Assumed/asserted to be importantbutnot tested. No comprehensive, validated instrumentfor assessing global mindset as a multi-dimensional construct. Mary Teagarden, 2008 47. The New Science of Global Mindset 48. management, education org studiestraining/HR language/x-cult international relations #1sampling plan: Review literatures, create/refine interviews, focusformulate research frameresearch questionsgroups w/intl scholarsn=8 global scholars sr. acad.validate vian-30 expert judgesObj. #1investigate the critique internally#2 nature and relevancerevise sampling plan:of globalas needed feed back tointerviews and small mindset" participants group discussionswith international categorize perceptions/analyze data, observations,experiences/observations of global managers,participant discussionsmindset+ execs, scholarsn=200 -Obj. #2validate construct, differentiate and focused group discussionsdefine global mindset#3 revise to state-of-art revise scholarly w/participantssampling plan:as neededperspective expert informantidentity antecedents, consequences, conference collect additional data, Obj. #3and applications contingenciesn=44#4consolidate into validate construct,of global mindset sampling plan: emergent themes revise to state-of-art #5practitionerinterviews w/ generate items re:perspectivesr. exec. expertsreviseIntel/Psych/Soc capitaln=17 as needed n-100 intl MBAs final reality check,+ psychometricians including emergentdrill intl leaders experiences/insightsfactors of GI Mindsetre:invid/org gl mindset successes #6 #7 The Global Mindsetrevise Items tocreate pilot test:pilot test #2 assure Inventory Global Mindset Inventory intl managers intl MBAs psychometric draftn/800n-,207soundness 49. Thunderbird Faculty, Students & Alumni 50. Why Global Mindset? Individuals with a high stock of globalmindset can navigate cross-culturalissues and understand the nuances ofglobal business. They understand the complexityassociated with global integration, knowhow to manage global supply chainrelationships, are aware of political andeconomic influences, and understandglobal competitors and customers. 51. Why Global Mindset? A companys stock of global mindset isthe sum of individual employees stocksof global mindset. Organizations that have a high stock ofglobal mindset are able to compete moreeffectively in the global economy. Global Mindset is multidimensional: it isthe sum of Intellectual, Psychologicaland Social Capital. Global Mindset can be developed! Mary Teagarden, 2008 52. What Is Global Mindset?A set of individual characteristics that help global leaders betterinfluence individuals, groups,organizations and systems unlike his or her own. Mary Teagarden, 2008 53. Three Components of Global Mindset INTELLECTUAL CAPITAL: Knowledge of global organization, industry, value networks and cultural complexities PSYCHOLOGICAL CAPITAL: Passion, excitement, respect, flexibility and openness towards other cultures SOCIAL CAPITAL: The ability to build sustainable trusting relationships with others from diverse parts of the world. Mary Teagarden, 2008 54. SocialIndividuals who possessGlobal Capital theCorporations behavioral that are flexibility anddiscipline toGlobal successful Behavioral Repertoire act Leadersin their differentIndividuals global appropriately who arewho have a marketsPsychological globalIndividualseffective in Capitalmindset who areinfluencingcapable ofpeople What isperceiving,fromthe game? analyzing differentWhat are Intellectual and socio- the rules? Capital decoding cultural How do the global systemswe win? operating environmentIndividuals who can accuratelyidentify effectivemanagerial actionin the global operating Mary Teagarden, 2008environment 55. Intellectual CapitalGlobal BusinessCosmopolitanSavvyOutlookCognitive ComplexityKnowledge of globalKnowledge of cultures in different parts of Ability to grasp complexindustry the worldconcepts quicklyKnowledge of globalKnowledge of geography,Strong analytical andcompetitive business & history and importantproblem solving skillsmarketing strategies persons of several countriesKnowledge of how toUp-to-date knowledge oftransact business & manageAbility to understand important world events abstract ideas risk in other countriesKnowledge of supplierKnowledge of economic andAbility to take complex political issues, concerns,issues & explain the mainoptions in other parts hot topics, etc. of majorpoints simply &of the world regions of the world understandably 56. Psychological CapitalPassion for Diversity Quest for Adventure Self-AssuranceInterest in exploring Interest in dealing withother parts of the worldchallenging situationsEnergeticInterest in getting to knowpeople from other parts Willingness to take risks Self-confidentof the worldInterest in living in Willingness to test ones Comfortable inanother country abilities uncomfortable situationsInterest in variety Interest in dealing withWitty in tough situationsunpredictable situations 57. Social CapitalIntercultural Empathy Interpersonal Impact DiplomacyAbility to work well withExperience in negotiatingpeople from other partsEase of starting a contracts in other cultures conversation with a strangerof the worldAbility to emotionally Strong networks withconnect to people from people from other culturesAbility to integrate diverseother cultures and with influential people perspectivesAbility to understandnon-verbal expression of Reputation as a leaderAbility to listen to whatpeople from other cultures others have to sayAbility to engage peoplefrom other parts of theCredibility Willingness toworld to work together collaborate 58. Detailed Global Mindset Profile Example 59. What Our Data Says Companies that ignore the global mindset do so at their own peril. The ones that most effectively develop this quality in their employeesparticularly senior leaderswill have a distinctive advantage over their competitors. Schon Beechler & Dennis BaltzleyChief Learning Officer, July 2008 60. The Global Mindset Inventory The Global Mindset Inventory is ascientific tool for assessing an individualor organizations stock of globalmindset. It is available online and takes about 10minutes to complete the self-assessment. Leaders receive a customized reportthat includes their own, theirgroup/company, and general benchmarkdata. 61. The Global Mindset Inventory The GMI is available in 3 versions: Corporate; Non-Business; Student (graduate &undergraduate) The GMI is available in 4 languages: English; Chinese (Mandarin); Russian;Japanese The GMI is available in 2 formats: Self-assessment; 360 (up to eight assessors) Over 15,000 individuals in many partsof the world have completed the GMI. 62. The Global Mindset Inventory Individual, Group and OrganizationalDevelopmental programs can beassessed using GMI for evaluatingprogress and effectiveness. Complements class content for courses like:Political Economy; Cross-Cultural Negotiation;International Communications; GlobalManagement Is available in Graduate (Masters) levelassessment questionnaire 63. Business School Application The GMI used in a pre and post testdesign Is directed at business schools that have a focus on Global Business, International Business, International Management Is an ideal way to measure students readiness to lead global organizations Evaluates the academic progress of students in the area of Global Mindset and Global Leadership, with pre-post testing May be used as a Learning Outcome Assessment (LOA) tool, to satisfy the requirements of the accrediting body, AACSB 64. Framework to Global LeadershipExperience CultivateExposureGlobal Develop LeadershipGlobalMindsetEducation DeepenGlobalKnowledge 65. Are MBAs Ready?MBAs that do not have a well-developed Global Mindsets areNOT ready to compete intodays globalized world where he or she must think globallyand act locally. 66. Good to Great! 67. 73 68. If you would like to take theassessment contact:mary.teagarden@thunderbird.edu;joy.mcgovern@thunderbird.edu ormansour.javidan@thunderbird.edu For more information, please go to ourwebsite:www.thunderbird.edu/globalmindset