Skills of a Globally Dexterous Leader Presentationb - AIMWA version - dclrevs311013

Skills of a globally dexterous leader

David Landers General Manager, East Asian Growth Markets

AIMWA, Perth

31st

October 2013

Australia Unlimited

Topics

•

Austrade’s value•

The globally dexterous leader

•

Comparing different societies to Australia•

Leading in different cultural settings

•

Business ethics and culture

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Who we are

•80 offices in 48 countries, with 44 of those offices in 15 markets in Asia.

•An ‘inverted pyramid’

–

more than 60 per cent of our 1,000 people are offshore, and 60 per cent of those are in Asia.

•More than 400 of our staff have one or more Asian languages.

•Of the people we send overseas, and our executive officers, two-thirds have experience working in the private sector

•Work at the ‘market & firm-specific’

level, not the lead on trade policy & negotiation

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Where we are

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What we doOur

role is to advance Australia’s international trade, investment

and education interests. Specifically, we:

•Assist Australian companies to grow business in international markets, including through administration of the Export Market Development Grants scheme and the TradeStart program.

•Provide coordinated government assistance to attract productive foreign direct investment (FDI) into Australia.

•Promote the Australian education sector

in international markets and assist Australian education providers with market information and services.

•Provide advice to the Australian Government on its trade and investment policy agenda.

•Deliver Australian consular, passport and other government services in 16 designated overseas locations.

•Manage the building Brand Australia program to enhance awareness of contemporary Australian skills and capability, and to enrich Australia’s global reputation.

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Our great strength --

sustained on-the-ground presence in offshore markets

•

We identify opportunities in market

•

We can interpret the business climate and local commercial practice, and provide language support as well

•

We can brief you in-depth on the market and the companies involved

•

We can refer you to potential customers in market

•

We can develop a visit/contact program for you

•

We can set up, and direct you to your appointments•

We can provide ongoing

in market assistance to assist in

establishing your business presence.

The globally dexterous leader

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“You have to know how to motivate people who speak different languages, who have different cultural contexts, who have different sensitivities and habits. You have to get prepared to deal with teams who are multicultural, to work with people who do not all think the same way you do.”

-

Carlos Ghosn

Why?

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The globally dexterous leader –

Carlos Ghosn

Image sources: Mercopress, Wikipedia, ahchen.wordpress.com

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Competencies of a culturally dexterous leader according to Ghosn

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Thirst for learning

•

Sense of humbleness (arrogance is the antithesis of cultural dexterity)

•

‘Common’

sense (building a shared basis for understanding as in ‘common ground)

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So what is culture?

A definition of culture:

“The learned beliefs, values, rules, norms, symbols, and traditions that are common to a group of people.”

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How Germans and Chinese perceive each other

Source: Yang Liu (2007), Oft trifft West (East meets West)

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Ideal of beauty

Source: Yang Liu (2007), Oft trifft West (East meets West)

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“The Boss”

Source: Yang Liu (2007), Oft trifft West (East meets West)

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Problem solving approach

Source: Yang Liu (2007), Oft trifft West (East meets West)

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Connections and contacts

Source: Yang Liu (2007), Oft trifft West (East meets West)

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Complexity of self expression

Source: Yang Liu (2007), Oft trifft West (East meets West)

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At a party

Source: Yang Liu (2007), Oft trifft West (East meets West)

Comparing different societies to Australia

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How to measure culture?•

Work started by Hofstede’s global study of IBM in the 70’s

•

Continued and modernised by the GLOBE study–

17,300 middle managers interviewed

–

951 organizations worldwide–

62 cultures

–

Focused on leadership, not just culture

•

Why is it useful?–

Objective

comparisons

–

Adapt strategy

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GLOBE’s cultural measures of society

Performance orientationUncertainty avoidance

Humane orientation Institutional collectivism

In-Group collectivismAssertiveness

Gender egalitarianismFuture orientation

Power distance

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Society: Power distance

The degree to which members of a collective expect power to be distributed equally.

Normative statement: Followers are (should be) expected to obey their leaders without question.

TOP THREE: BOTTOM THREE: MoroccoNigeriaEl Salvador

NetherlandsDenmarkCzech Republic

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Society: Institutional

collectivism

The degree to which organizational and societal institutional practices encourage and reward collective distribution of resources and collective action

Normative statement: Leaders encourage (should encourage) group loyalty even if individual goals suffer.

TOP THREE: BOTTOM THREE:

SwedenSouth KoreaJapan

HungaryGreeceCzech Republic

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Society: Assertiveness

The degree to which individuals are assertive, dominant & demanding in their relationships with others.

Normative statement: People are (should be) generally dominant.

TOP THREE: BOTTOM THREE:

AlbaniaNigeriaHungary

SwedenNew ZealandSwitzerland

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Society: Future orientation

The extent to which a collective encourages future-

oriented behaviors such as delaying gratification, planning & investing in the future.

Normative statement: More people live (should live) for the present than for the future.

TOP THREE: BOTTOM THREE:

SingaporeSwitzerlandNetherlands

PolandArgentinaRussia

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Example: What is remarkable about this picture?

This picture generated 40,000 reposts and thousands of comments on Sina Weibo. Why?

"This is something unbelievable in China," said Tang, a Chinese-American citizen. "Even for low-ranking officials,

we don't do things for ourselves. Someone goes to buy the coffee for

them. Someone carries their bags for them.“

Q: What does this say about the differences between US and Chinese culture?

American Ambassador to China Gary Locke, ordering coffee in Seattle Airport.

Source: ChinaSmack.com

Leading in different cultural settings

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“The Jack Welch of the future cannot be like me. I spent my entire career in the United States. The next head of General Electric will be somebody who spent time in Bombay, in Hong Kong, in Buenos Aires.”

-

Jack Welch

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Question?

How would you describe a good Australian leader?

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Do different cultures really prefer different leaders?Able to anticipate Administratively skilledAmbitious AsocialAutonomousCautious Class conscious CommunicativeCompassionate Confidence builderCoordinatorCunningDecisiveDependableDictatorialDomineeringDynamic

Effective bargainerEgocentricElitist EncouragingEnthusiasticEvasive Excellence orientedForesightFormal HabitualHonestIndependent Indirect IndividualisticInformedIntelligentIntra-group competitor

Intra-group conflict avoider Intuitive IrritableJustLogical LonerMicro-managerMotivationalMotive arouserNoncooperativeNonexplicitOrderly Plans aheadPositiveProcedural Provocateur Risk taker

RulerRuthlessSelf-effacing Self-sacrificial Sensitive SincereStatus-consciousSubdued TrustworthyTeam builderUniqueWillful Win-win problem solverWorldly

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Example: Leadership styles and cultural differences

Second lowest world rank for modesty

among leaders

Third highest rank for institutional collectivism in

society

Image sources: CNN/Getty.

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The globally dexterous leader –

Carlos Ghosn

Image sources: Mercopress, Wikipedia, ahchen.wordpress.com

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What the study says about Australian leaders

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Australia vs QatarMost important leadership attributes to QatarisHuman orientation

Inspirational

Team integrator

Least important leadership attributes to QatarisAutocratic

Self centred

Malevolent

Australia Qatar

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Australia vs IndiaMost important leadership attributes to IndiansVisionary

Team integrator

Administratively competentLeast important leadership attributes to IndiansAutocratic

Self centred

Malevolent

Australia India

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Australia vs IndonesiaMost important leadership attributes to IndonesiansPerformance oriented

Team integrator

Inspirational

Least important attributes leadership to IndonesiansAutocratic

Self centred

Malevolent

Australia Indonesia

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Australia vs ChinaMost important leadership attributes to ChineseTeam integrator

Inspirational

Administratively competentLeast important leadership attributes to ChineseAutocratic

Self centred

Malevolent

Australia China

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Another take on Australia vs China

Source: ClarkMorgan Ltd (www.clarkmorgan.com)

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Which cultures are similar?

Source: Project GLOBE.

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Be aware of culturally specific sensitivities

Thailand Royal Family; touching the head, tempers…..

China Loss of face, direct criticism….

Indonesia Tempers, gender practices, the color red

Middle-East Invitations, contact with left hand, expose bottom of foot

India Avoid pointing…

Japan Impatience, loss of face….

South Korea Deference to superiors, personal image…

Business ethics and culture

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Business ethics issues

Issue Cultural explanation

Nepotism Collectivism = obligations to close relations

Graft High power distance = less accountability

Bribery Low future orientation = motivation linked to immediate rewards

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Global corruption risks

Source: Transparency International

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For organisations and individuals

•Fines for organisation•Fines and prison for employees

and officers

•Incurring substantial legal and professional fees•Reputational damage

For countries and communities

•Lack of money for communities and on-going poverty•Destruction of industry•Reduced Foreign Direct Investment•Loss of faith in public officials and institutions•Civil unrest and political instability

Bribery and its consequences

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Elements of Bribery under Australian law Under Section 70 of the Criminal Code 1995Amendment (Bribery of Foreign Public Officials) Act 1999

Bribery involves:

• Providing, offering or arranging a benefit

• The benefit is not legitimately due

•With an intention to influence a Foreign Public Official (FPO) in their official duties

• With the motive to gain or retain business or a business advantage

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Application of Australian law

It is also an offence to:

• Attempt to offer a bribe

• Help any person to offer a bribe

• Get another person to offer a bribe

• Encourage/urge another person to offer a bribe

• Conspire/secretly plan with another person to offer a bribe

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Other forms of bribery –

are they ok?•

Gifts

•

Hospitality•

Lavish entertainment

•

Travel•

Supporting a favoured cause

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Employment •

Donation to a political party

•

Education for family members

Conclusion

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My guidance…•

Remember above all else that good leadership is almost universal

•

Myth vs. reality --

be intellectually vigilant & robust in your judgement of cross-cultural situations

•

Remember Ghosn’s competencies:–

Curious

–

humble–

‘common’

sense

•

Be authentic–

get comfortable with being uncomfortable

–

avoid unforced errors•

Proactively seek out international projects and assignments

•

Join the Asialink

programme•

Hire an international business student intern

•

Talk with Austrade in market

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“But the key point is to get people out of their comfort zone, learn new languages, travel to different countries, go to places where you don’t understand the culture, and expose yourself to situations where you have to deal with uncertainty. All of this helps put yourself in the shoes of people who are different from you.”

-

Carlos Ghosn

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Recommended reading and websites

•

GLOBE study homepage: http://business.nmsu.edu/programs-centers/globe

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Book: Yang Liu (2007), Oft trifft West (East meets West) •

Book: Trompenaars and Hampden-Turner (1998), Riding the Waves of International Culture, Second Edition

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Book: Thomas Sowell (1997), Migrations and Culture: A World View

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Blogs: Russiaslam; Indoboom, Chinasmack, Koreabang, Japancrush offer English translations of local scandals and user comments

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ASIALINK Leaders Program and events: http://asialink.unimelb.edu.au

•

Trainers: Beasley Intercultural, Clark Morgan

Questions

[email protected]

With credit to:

Brent MooreExecutive Officer –

East Asian Growth Markets

[email protected]