intl ldrshp 7 19-2012

© 2012 by Gregory Zerovnik. All right reserved.

International LeadershipGregory F. Zerovnik, EMBA, PhDJuly 19, 2012


TopicsLeadership

Definition & Uses Strategic Keys for Success

Role of Culture / People as Groups National culture Business culture

The Company Big 5 Trait Theory How personality correlates with business


“It is more important to do the right thing, than to do things right.” —Peter F. Drucker

Leaders – Decide on the right thing to doManagers – Execute the right thing, in the right way

Who are Leaders?

Classical Leaders:Sun Tzu

Julius CaesarGenghis Khan

Alexander the GreatGeorge Washington


Leadership and BusinessGood results are not the same as good leadership

Other factors may come into play: Political connections Corruption Joss

There are good leaders (Mother Teresa) and bad leaders (Hitler)

Whether good or bad, the leader is the person in chargeBusiness Leaders:

Sam Walton, WalmartCarlos Ghosn, Nissan

Ratan Tata, diversified industriesYang Yuanqing, Lenovo


Leadership TheoriesTrait theories

Leaders are born, not madeBehavioral theories

Leadership can be taught/learnedContingency theories

It all depends on the situationTransformational theories

Ways to change organizations for the better


Leader Traits (characteristics) Physical vitality and stamina Intelligence and action-

oriented judgment Eagerness to accept

responsibility Task competence Understanding followers and

their needs Skill in dealing with people

Need for achievement Capacity to motivate people Courage and resolution Trustworthiness Decisiveness Self-confidence Assertiveness Adaptability/flexibility


Leader BehaviorsConcern for task

Concrete objectives / organization is keyConcern for people

Followers are people, not just “production units”

Directive leadershipGiving and taking orders / discipline

Participative leadershipSharing decision-making with others


Contingency Theories, Pt. I4 ways to lead / 4 situations

Telling High task / low relationship (Theory X, Taylorism)

Selling High task / high relationship (coaching the willing, less able)

Participating Low task / high relationship (good abilities, low willingness)

Delegating Low task / low relationship (intrinsically motivated teams)


Contingency Theories, Pt. IIPrimal Leadership1 (emotional intelligence)

6 leadership styles (behavioral overtones)Visionary: values are keyCoaching: delegationAffiliative: warm, people-focusedDemocratic: shared commitmentPacesetting: classic management by objectivesCommanding: command &control, authoritarian1Goleman, Boyatsiz & McKee


Transformational TheoriesTransactional leadership

Short-term focusFast-turnaroundCrisis applications

Transformational leadershipLong-term orientationStrategic objectives in mindCrisis prevention or mitigation


Transformational TheoriesThree main views

Team leadershipSee works by Meredeith Belbin or Jean Lipman-

BlumenLeaders as catalysts of change

See works by Warren Bennis or Stephen CoveyLeaders as strategic visionaries

(charismatic leaders)See works by Peter Senge or Gordon Davidson


Summary of TheoriesTrait theories

Leaders seem to have certain personality traits in common

Behavioral theories Leaders are people who do things, who perform

Contingency theories How one chooses to lead depends on circumstances

Transformational theories Long-term, strategic efforts to change organizations

for the better


Unlocking leadership successCurrent environment:

High uncertaintyRapid pace of changeTrust has eroded

Four leaders share their views1

1Source: McKinsey Quarterly, “Leading in the 21st Century.”

信任


Josef AckermanCEO, Deutschebank

1980s – 80% of revenue came from Germany mid 1990s – still at 70% Today, only 38& of revenue comes from Germany

“Managing risk also has become much more complex for banks. It’s not only market risk; there is more and more political and social risk. Increasingly, financial

markets are becoming political markets. That requires different skills—skills not all of us have acquired at university; how to properly deal with society, for

example, a stakeholder that has immensely grown in importance since the financial crisis.”


Carlos GhosnTwo kinds of crisis:

Internal crisis The company is not being managed well Solution can be found internally

External crisis The company faces environmental threats

Earthquake in Japan or collapse of Lehman Bros. The strategy is not the question; how to adapt the strategy is the key

“I think one of the reasons Nissan has been able to cope with external crises better than some of our competitors is that we have a more diverse,

multinational culture. We don’t just sit around waiting for the solution to come from headquarters. We are accustomed to always looking around,

trying to find out who has the best ideas. Our people in the US talk to our people in Japan on an equal level. We have a lot more reference points.”


Ellen KullmanChairman of the Board, DuPont Corp.Pay attention to the mega-trends

Population growth Resource & energy sustainability Environmental responsibility

“We matched our focus, our research and development, and our capital expenditures up

against megatrends like these over the last five years. This is the future, so we need to

understand how our science relates to it.”


Shimon PeresPresident of Israel“States have lost their importance and strength. The old theories—from Adam Smith to Karl Marx—have lost their value because they are based on things like land, labor,

and wealth. All of that has been replaced by science. Ideas are now more important than materials. And ideas

are unpredictable. Science knows no customs, no borders. It doesn’t depend on distances or stop at a given point…. It is a new world. You may have the strongest army—but it cannot conquer ideas, it cannot conquer knowledge.”


Leaders & GovernanceOwners and Managers

Managers are employed by owners They act as agents of the owners Their authority comes from the owners, who are

directly represented by the board of directors The Board of Directors approves corporate strategy The top management team carries out the strategy

The CEO should answer to the board The Board should be independent of the managers Outside directors must be part of a board In China, many corporations are public-private with

ownership shared by the state


Leaders & CultureGeert Hofstede

Original study in 1970s for IBM Updated in 2001

Five factors of culture Power-Distance Individualism-Collectivism Masculinity-Femininity Uncertainty Avoidance Long-Term vs. Short-Term Orientation


Corporate CultureCorporation culture reflects two components

National culture (we have already studied) Group norms

Group Norms Group norms depend on the influence of both

leaders and followers Both are influenced by National Culture But followers are influenced by National Culture

and individual personalities Peers and subordinates Leaders


Power DistanceThe extent to which the less powerful members

of organizations and institutions (like the family) accept and expect that power is distributed unequally. This represents inequality (more versus less), but defined from below, not from above.

It suggests that a society's level of inequality is endorsed by the followers as much as by the leaders.

Source: http://www.geert-hofstede.com/


Power DistanceRank Country Score

1 Malaysia 1044 Philippines 948/9 Indonesia 7810/11 India 7713 Singapore 7415/16 Hong Kong 6821/23 Thailand 6427/28 South Korea 6029/30 Taiwan 58

Rank Country Score33 Japan 5438 United States 4039 Canada 3941 Australia 36

People’s Republic of China

80Source: http://www.geert-hofstede.com/


Individualism & CollectivismThe degree to which individuals are integrated into

groups. Individualist

Societies with loose ties between individuals: Everyone is expected to look after him/herself and his/her immediate family.

Collectivist Societies in which people from birth onwards are integrated

into strong, cohesive in-groups, often extended families (with uncles, aunts and grandparents) which continue protecting them in exchange for unquestioning loyalty.



Individualism & Collectivism


11Source: http://www.geert-hofstede.com/

Rank Country Score1 United States 912 Australia 904/5 Canada 8021 India 4822/23 Japan 4631 Philippines 3236 Malaysia 2637 Hong Kong 25

Rank Country Score39/41 Singapore 2039/41 Thailand 2043 South Korea 1844 Taiwan 1747/48 Indonesia 14


Masculinity / Femininity How roles are distributed between the genders Women's values differ less among societies than men's values Men's values from one country to another contain a dimension from

very assertive and competitive and maximally different from women's values on the one side, to modest and caring and similar to women's values on the other.

Masculine = assertive / Feminine = modest, caring In feminine countries women have the same modest, caring values

as the men In masculine countries women are somewhat assertive and

competitive, but not as much as the men, so that these countries show a gap between men's values and women's values



Masculinity / Femininity


Rank Country Score1 Japan 9511/12 Philippines 6415 United States 6216 Australia 6118/19 Hong Kong 5720/21 India 5624 Canada 5225/26 Malaysia 50

Rank Country Score28 Singapore 4844 Thailand 3441 South Korea 3932/33 Taiwan 4530/31 Indonesia 46


51


Uncertainty Avoidance Society's tolerance for uncertainty and ambiguity The extent to which a culture programs its members to feel

either uncomfortable or comfortable in unstructured situations. Unstructured situations are novel, unknown, surprising, different from

usual. Uncertainty avoiding cultures try to minimize the possibility of such situations by strict laws and rules, safety and security measures, “there can only be one Truth and we have it.”

People in uncertainty avoiding countries are more emotional and motivated by inner nervous energy.

Uncertainty accepting cultures are more tolerant of opinions different from what they are used to; they try to have as few rules as possible. People within these cultures are calm and contemplative, and not expected by their environment to express emotions



Uncertainty Avoidance


Rank Country Score7 Japan 9216/17 South Korea 8526 Taiwan 6928 Singapore 4830 Thailand 6430/31 Indonesia 4637 Australia 5141/42 Canada 48

Rank Country Score43 United States 4644 Philippines 4445 India 4046 Malaysia 3649/50 Hong Kong 29


36


Long-term OrientationThis fifth dimension was found in a study among students in 23

countries, using a questionnaire designed by Chinese scholars. Values associated with Long Term Orientation are thrift and

perseverance. Values associated with Short Term Orientation are respect for

tradition, fulfilling social obligations, and protecting one's “face.”

Both the positively and the negatively rated values of this dimension are found in the teachings of Confucius, the influential Chinese philosopher who lived around 500 B.C. The dimension also applies to countries without a Confucian heritage.



Long-term Orientation


Rank Country Score2 Hong Kong 963 Taiwan 874 Japan 805 South Korea 757 India 618 Thailand 569 Singapore 48

Rank Country Score15 Australia 3117 United States 2920 Canada 2321 Philippines 19

People’s Republic

of China = 98 rank = #1


National Culture Summary


Corporate CultureTypical corporate culture terms include:

Innovation culture (high technology firms) Warrior culture (commodity firms) Cooperative culture (retailers, distributors) Learning culture (start-ups, education) Informal culture (high-tech, some services) Formal culture (finance, consulting)

These are not exclusive and firms may have a dominant culture, as well as one or more subcultures


SummaryInternational Leadership Requirements

Good traitsEffective behavior (action)Adaptability to changing circumstancesA long-term, transformative orientationAwareness of national & corporate cultures


Thank you!

谢谢Xièxiè

I wish to acknowledge the teachingsof Dr. Peter Drucker and the works of Dr. Geert Hofstede, and Dr. Richard Lewis. Their works and lessons are at the foundation of this presentation.

intl ldrshp 7 19-2012

Business

masculinity

term orientation

uncertainty

corporate

peoples republic

trait theoriesleaders

individualism

gregory zerovnik