Skills of a globally dexterous leader David Landers General - - PowerPoint PPT Presentation

Skills of a globally dexterous leader

David Landers General Manager, East Asian Growth Markets AIMWA, Perth 31st October 2013

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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 do

Our 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
• verseas 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

• 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 orientation Uncertainty avoidance Humane orientation Institutional collectivism In-Group collectivism Assertiveness Gender egalitarianism Future orientation Power distance

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Society: Power distance

The degree to which members

• f 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: Morocco Nigeria El Salvador Netherlands Denmark Czech Republic

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Society: Institutional collectivism

The degree to which

• rganizational 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: Sweden South Korea Japan Hungary Greece Czech 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: Albania Nigeria Hungary Sweden New Zealand Switzerland

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Society: Future orientation

The extent to which a collective encourages future-

• riented 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: Singapore Switzerland Netherlands Poland Argentina Russia

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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 skilled Ambitious Asocial Autonomous Cautious Class conscious Communicative Compassionate Confidence builder Coordinator Cunning Decisive Dependable Dictatorial Domineering Dynamic Effective bargainer Egocentric Elitist Encouraging Enthusiastic Evasive Excellence oriented Foresight Formal Habitual Honest Independent Indirect Individualistic Informed Intelligent Intra-group competitor

Intra-group conflict avoider Intuitive Irritable Just Logical Loner Micro-manager Motivational Motive arouser Noncooperative Nonexplicit Orderly Plans ahead Positive Procedural Provocateur Risk taker Ruler Ruthless Self-effacing Self-sacrificial Sensitive Sincere Status-conscious Subdued Trustworthy Team builder Unique Willful Win-win problem solver Worldly

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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 Qatar

Most important leadership attributes to Qataris Human orientation Inspirational Team integrator Least important leadership attributes to Qataris Autocratic Self centred Malevolent

Australia Qatar

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Australia vs India

Most important leadership attributes to Indians Visionary Team integrator Administratively competent Least important leadership attributes to Indians Autocratic Self centred Malevolent

Australia India

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Australia vs Indonesia

Most important leadership attributes to Indonesians Performance oriented Team integrator Inspirational Least important attributes leadership to Indonesians Autocratic Self centred Malevolent

Australia Indonesia

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Australia vs China

Most important leadership attributes to Chinese Team integrator Inspirational Administratively competent Least important leadership attributes to Chinese Autocratic 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 1995 Amendment (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
• 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

• f 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

• Book: Yang Liu (2007), Oft trifft West (East meets West)
• Book: Trompenaars and Hampden-Turner (1998), Riding

the Waves of International Culture, Second Edition

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

World View

• Blogs: Russiaslam; Indoboom, Chinasmack, Koreabang,

Japancrush offer English translations of local scandals and user comments

• ASIALINK Leaders Program and events:

http://asialink.unimelb.edu.au

• Trainers: Beasley Intercultural, Clark Morgan

Questions

David.Landers@austrade.gov.au With credit to: Brent Moore Executive Officer – East Asian Growth Markets Brent.Moore@austrade.gov.au