Global Mindset Inventory

Dwi Heriyanto B.
Alumni Global Mindset

Certification Program
Global Mindset is a registered trademark of Thunderbird School of Global Management. All rights reserved.
2013. Mansour Javidan, Ph.D. all rights reserved.
The Major Trends
Between 2000 and 2010:
Globalization and technology had the biggest

impact on corporations
Globalization and technology will have the

biggest impact on corporations
The Major Trends
Emerging markets increase their global power
70% of the world growth over the next few years will
be in Emerging markets.
IMF estimates that the total GDP of emerging markets
could overtake that of developed economies by 2014.
The combined purchasing power of the global middle
classes is estimated to be around $56 trillion in the
next few years. Over 80% will be based in Asia.
Most of the middle class will live in cities. In Asia, $7.5
trillion in investment in infrastructure is needed by
2020.
Emerging from the Recession . . .

the Two Speed Recovery
Source: IMF Global Economic Outlook, July 2012
The Major Trends
Globalization is speeding up over the next ten

years
80% of companies with over $1 bln in revenues will be

competing in more foreign markets
Over 70% of companies with under $1 bln in revenues
will be competing in more foreign markets
67% of large companies will hire more people in foreign
markets than local markets
35% of large companies will conduct more R&D in
foreign markets than in local markets
The Major Trends
Boards of directors will become more

international
Managers will become more international
Managers will have more diverse backgrounds
Managers will be required to undergo leadership
training
Workers will have more diverse backgrounds
Workers will become more international
The Major Trends
Technology will:
Help companies reach new customer segments

Reduce cost and enhance efficiency
Help outsource more non-core functions
Help us use more virtual meetings
Be a main differentiator in our offerings
The Major Trends
Technological innovation
Mobile commerce will explode

Conservative estimate of mobile commerce by
2015 is $214 billion
In 2010, sales of smartphones outpaced sales of
PCs
Industry boundaries will blur
Social media will rule
The Major Trends
Cleantech is coming
Source of national competitive advantage (e.g.

Germany, Brazil)
Corporate strategic priorities (Google and Cisco
in home energy management business)
Organizations show more transparency in their
sustainability practices
More sensitivity to climate change and
sustainable cities
Navigating the VUCA World
VolatilityThe nature, speed,

volume, magnitude, and dynamics
of change
UncertaintyThe lack of
predictability of issues and events
ComplexityThe confounding of
issues and the chaos that surround
any organization
AmbiguityThe haziness of
reality and the mixed meanings of
conditions
The Major Trends
Globalization and technology had the biggest

impact on corporations
Globalization and technology will have the

biggest impact on corporations
Companies will increasingly:
Harness big data, business intelligence

Focus on predictive capability, analytics,
simulations
Companies will increasingly:
Localize management
Focus on leveraging diversity
Focus on soft skills like communication and
cultural awareness
Build multicultural global virtual teams
Look for talent in emerging markets
GAME SESSION
Understanding Why Global Mindset is Important
15
GMI NEEDS ASSESSMENT (SHORT FORM)

AGREE
QUESTION
DISAG
REE
Over the next five years, Telkom Indonesias opportunities, in

terms of markets and supplies, are mostly outside of your country.
Over the next five yours, managers at Telkom Indonesia will
increasingly need to work with people from other parts of the
world.
Over the next five years, managers at Telkom Indonesia will
increasingly need to work with direct reports who are located in
different parts of the world.
Telkom Indonesia believes that a key to its sustainable
competitive advantage in the future resides in its capability to
manage cross cultural complexity in its value chain of suppliers,
managers, employees, distributors, and customers better than its
competitors
Influencing people who are different from you is harder than

influencing people who are like you.
16
CASE DISCUSSION:
THE CURIOUS CASE OF DAVID AKEY
Why was David frustrated and having such

a hard time?
David did some preparation prior to his

assignment, why wasnt it sufficient?
Why was Davids experience and

enthusiasm so different than those of his
colleague Mary?
What suggestions would you give David to

improve his experience in China?
What suggestions would you give David to

better interact with his Chinese
colleagues?
17
CORPORATIONS GLOBAL AMBITIONS

We also continue to focus
on growing market share
and expanding our
business in key geographic
markets, with a special
emphasis on Brazil,
Russia, India, China, South
Korea, and Mexico.
William D. Green
Former Chairman &
CEO, Accenture
Global Growth
19
GLOBAL GROWTH EMPOWERED

Our Current Strategy
US
A
JAPAN
Our Future Growth
UK
AUSTRALIA
INDONESIA
POLAND
TURKEY
SAUDI
ARABIA
New Markets
CANADA
KOREA
INDIA
BRAZIL
New
Products
MEXICO
CHINA
TAIWAN
PHILIPPINES
Global Growth
20
OCTOBER 21, 2011: SEAGATE CORPORATIONS SHARES

CLOSED UP BY 28% BECAUSE
A.
B.
C.
D.
The company announced a

new and innovative product
The companys CEO was
hailed by Fortune magazine
as the most successful global
leader in the industry
There was a disastrous flood
in Thailand
The company announced a
major share buy back
program
Global Growth
21
LG ELECTRONICS:
7 Regions, 47 Countries // 84 subsidiaries, 112 operations
Around 84,000 executives and employees
Austria
Czech Republic
France
Germany
Greece
Hungary
Italy
Latvia
Netherlands
Poland
Portugal
Romania
Spain
Sweden
Turkey
United Kingdom
China
Egypt
Jordan
Morocco
Nigeria
Saudi Arabia
South Africa
UAE
Kazakhstan
Russia
Ukraine
Canada
USA
Mexico
Australia
India
Indonesia
Japan
Korea
Malaysia
Philippines
Singapore
Taiwan
Thailand
Vietnam
Argentina
Brazil
Chile
Colombia
Panama
Peru
Global Growth
22
CHINAS INVESTMENT GROWTH
In 2010, China made the

fifth largest amount of
foreign direct investment
(FDI) in the world,
surpassing Japan and
U.K.
(China Daily, April 27, 2012)
Global Growth
23
THE WORLD IS GLOBALIZING
In 1990: 3,000 MNCs were

operating in the world
In 2010: There were 80,000
MNCs with 800,000 affiliates
2012: There are more than
100,000 MNCs and 900,000
affiliates with assets valued at
$57 trillion (10x more than 1990)
*World Investment Report

World Investment Forum, April 2012, under secretary Robert Hormats
Global Growth
24
CHALLENGES IN EXPANDING GLOBALLY
Global Executives:
Readiness of the business
unit/ company to expand
HR/Executive Development
Professionals (EDP):
Shortage of global
leadership talent
Smith, Caver, Saslow, Thomas, Developing the Global Executive, 2009.
Global Growth
25
2009 IBM SURVEY OF OVER 1,500 CEOS
79% expect high/very high

level of complexity over the
next five years
60% view the economic

environment as more
complex, multifaceted, and
interconnected
49% feel prepared for the

expected level of complexity
Global Growth
26
THE WORLD MAY BE FLAT, BUT
It is More Complex
It is More Diverse
It is More
Uncertain
See world air traffic during a 24 hour period in 2009:

http://www.youtube.com/watch?v=z1US_4uf4YE
Challenges of Global Leadership
28
GLOBAL LEADERS NEED TO MANAGE ACROSS
Diverse cultural
systems
Diverse political
and institutional
systems
Time and
geographic
distance
29
A MAJOR CHALLENGE IN ESTABLISHING

OVERSEAS BUSINESS
Survey of 1000 internationally
oriented Chinese companies
found that more than 72% of the
interviewees believe the biggest
difficulties that arise in conducting
business overseas stem from
cultural differences.
Chinese Companies' Outbound Investment and
Operation Survey, The China Council for the Promotion
of International Trade (China Daily, April 27, 2012)
30
MAJOR CHALLENGES EXPATRIATES

FACE IN ASSIGNMENT SUCCESS
% of Respondents Selecting Each Issue as Presenting the Greatest
Difficulties for Expatriate Managers (Respondents selected up to 3)
Other
Lack of respect for new foreign manager
Inadequate standard of living or quality of life
Lack of adequate training for expatriates
Accusations of arrogance/superiority
Resentment of salary differentials
Inability to speak the local language
Different working styles and office norms
Inability to understand local culture
Cultural or national conflicts between staff
Source: The Economist Intelligence Unit
Limited, 2010.
10
20
30
40
50
60
31
GLOBAL LEADERS NEED TO:

Influence individuals, groups,
and organizations inside and
outside their firm, representing
diverse cultural/political/
institutional systems under
conditions of rapid change and
high uncertainty
32
GLOBAL LEADERS WORST AT INFLUENCE
33
HOW GLOBAL LEADERS SUCCEED

Decision making in
complex environments
and ability to read
cultural nuances and
adapt leadership style
accordingly.
Howard and Wellins, 2008
34
IMPORTANT KNOWLEDGE AREAS

FOR GLOBAL EXECUTIVES
Understanding of government
and political issues in key areas
Knowledge of local markets

and consumer preferences
Knowledge of local business

practices
Smith, Caver, Saslow, Thomas, Developing the Global

Executive, 2010
35
HR PRACTICES DIFFER AMONG CULTURES
36
GLOBAL LEADERSHIP
The emerging global
enterprise is a company that
fashions its strategyin
pursuit of a new goal: the
integration of production and
value delivery worldwide.
Samuel J. Palmisano
Former Chair of the
Board,
President, and CEO of
IBM
37
INFORMATION ON GLOBAL LEADERSHIP
On October 3, 2013, Amazon.com

listed
13,096 books
on the subject of Global Leadership!
38
BUT.
In a recent survey of global

leaders:
Over 60% considered their
own preparation in global
leadership as poor or fair
Almost 50% viewed the
support from their own
corporations as poor or fair
39
Global Mindset Quotes

Global mindset to
me means that
the individual has
a global passport,
but in their head.
Being comfortable
with being
uncomfortable in
uncomfortable
environments.
Its the ability to

understand the
similarities and
differences among
cultures and their
reasons.
I think its a
natural curiosity
to learn more
about other
cultures.
Rather than being
frustrated and
intimidated by the
differences, enjoying
them and seeking
them out because you
find them fascinating.
Global Mindset
41
GLOBAL MINDSET DEFINED
Individual attributes that

help influence
individuals, groups, and
organizations that are
unlike the leaders.
Global Mindset
42
MOST IMPORTANT SKILLS

FOR GLOBAL EXECUTIVES
Senior Executives:
Ability to influence people
from other cultures
Smith, Caver, Saslow, Thomas, Developing the Global Executive, 2010.
Global Mindset
43
A GLOBAL MINDSET
To succeed in this complex
business environment, leaders
will need to adopt a set of
characteristics and traits that
enables them to move fluidly
across different cultures.
James S. Turley, Former Chairman and
CEO,
Ernst & Young, Fast
Forward: Strategies for Success in
Tomorrows Hot New Markets.
Global Mindset
44
GLOBAL MINDSET EXAMPLE
Gerald Schafer is a Swiss national

who has
never really lived in Switzerland.
He was born in Budapest
.
His parents are Swiss
and Hungarian
.
Mr. Schafer grew up in Africa
and South America
and
studied in the United States
.
His wife is Brazilian
.
At home, he speaks Portuguese along with Spanish,
French, German, English and Hungarian.
Global Mindset
45
Psychologic
al
Capital
Individual
s Who
Have a
Global
Mindset
Intellectual
Capital
Individuals who are

capable of perceiving,
analyzing, and
decoding the global
operating environment
Individuals who
possess the
behavioral flexibility
and discipline to act
appropriately
Individuals who can

accurately identify
effective managerial
action in the global
operating environment
Behavioral
Social
Capital
Repertoire
GLOBAL MINDSET AND

EFFECTIVE GLOBAL LEADERSHIP
Global
Leaders who
are effective
in influencing
people from
different
sociocultural
systems
Corporation
s ambition to
be
successful
in global
markets
What is
the game?
What are
the rules?
How do
we win?
Beechler, S. ,and Javidan, M. (2007). Leading with a Global Mindset. In Javidan, M., Hitt, M. A., and Steers, R. M. (eds.), 2007, Advances in International Management, Vol. 19: The Global
Mindset. Elsevier.
Global Mindset
46
GLOBAL MINDSET MODEL
GLOBAL INTELLECTUAL CAPITAL
48
GLOBAL PSYCHOLOGICAL CAPITAL
49
GLOBAL SOCIAL CAPITAL
50
DEVELOPING YOUR GLOBAL MINDSET

Available in print and
electronically
Specific development
suggestions for all 35
capabilities of Global Mindset
Relevant resources at your
fingertips
35 engaging narratives of Global
Mindset in action
7 case studies specific to Global
Mindset capabilities
www.developingglobalmindset.c
om
GMI Validation Research and Demographic Findings
51
DEVELOPING YOUR GLOBAL MINDSET

BOOK WEB SITE
www.developingglobalmindset.
com
52
NGMI WEB SITE

INCLUDING TECHNICAL REPORT
Provides in-depth information and

statistics for
www.globalmindset.com
Confirmatory factor analysis
Internal reliability
External validity
53
How Telkom Develop GMI ?
Create ICC

Global Mindset Inventory

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Dwi Heriyanto B.

Alumni Global Mindset

2013. Mansour Javidan, Ph.D. all rights reserved.

2013. Mansour Javidan, Ph.D. all rights reserved.

The Major Trends

Between 2000 and 2010:

Globalization and technology had the biggest

Between 2010 and 2020:

Globalization and technology will have the

2013. Mansour Javidan, Ph.D. all rights reserved.

The Major Trends

Emerging markets increase their global power

2013. Mansour Javidan, Ph.D. all rights reserved.

Emerging from the Recession . . .

Source: IMF Global Economic Outlook, July 2012

2013. Mansour Javidan, Ph.D. all rights reserved.

The Major Trends

Globalization is speeding up over the next ten

80% of companies with over $1 bln in revenues will be

2013. Mansour Javidan, Ph.D. all rights reserved.

The Major Trends

Between 2010 and 2020:

Boards of directors will become more

2013. Mansour Javidan, Ph.D. all rights reserved.

The Major Trends

Help companies reach new customer segments

2013. Mansour Javidan, Ph.D. all rights reserved.

The Major Trends

Mobile commerce will explode

2013. Mansour Javidan, Ph.D. all rights reserved.

The Major Trends

Source of national competitive advantage (e.g.

2013. Mansour Javidan, Ph.D. all rights reserved.

Navigating the VUCA World

VolatilityThe nature, speed,

2013. Mansour Javidan, Ph.D. all rights reserved.

The Major Trends

Between 2000 and 2010:

Globalization and technology had the biggest

Between 2010 and 2020:

Globalization and technology will have the

2013. Mansour Javidan, Ph.D. all rights reserved.

Companies will increasingly:

Harness big data, business intelligence

2013. Mansour Javidan, Ph.D. all rights reserved.

Companies will increasingly:

2013. Mansour Javidan, Ph.D. all rights reserved.

2013. Mansour Javidan, Ph.D. all rights reserved.

Understanding Why Global Mindset is Important

GMI NEEDS ASSESSMENT (SHORT FORM)

Over the next five years, Telkom Indonesias opportunities, in

Influencing people who are different from you is harder than

Understanding Why Global Mindset is Important

Why was David frustrated and having such

David did some preparation prior to his

Why was Davids experience and

What suggestions would you give David to

What suggestions would you give David to

2013. Mansour Javidan, Ph.D. all rights reserved.

Understanding Why Global Mindset is Important

2013. Mansour Javidan, Ph.D. all rights reserved.

CORPORATIONS GLOBAL AMBITIONS

GLOBAL GROWTH EMPOWERED

Our Future Growth