Global Manager “Companies and managers often fail, not because they had the wrong strategy, but because they were not capable of implementing it successfully.” “…implementation now takes place in many different cultures, often simultaneously.” Comprehensive knowledge } { relational + } + { + Technical skills } { cross-cultural skills Executive traits changing: Old New Style Autocratic Participative Authoritarian learner/teacher Focus Ethnocentric Multi-cultural D/M basis Economics of firm Breadth of stakeholders

Skills of the Global Manager 1. Global strategic skills - shed parochial views - awareness of international relations and foreign affairs -global financial markets and X/C rates - global economies of scale vs. local market responsiveness 2. Ability to Manage Change and Transition - Recognize environment is dynamic, not static - radical changes (and continuous changes) set up tensions between - country and regional managers - regions and Head office - functions - Prod’n, marketing, R&D, product design Note that managing change through an alliance has to be by negotiation, adjustment, compromise

3. Ability to manage cultural diversity - cultural determinants of product use -”popular” culture and labour relations - home culture vs. host culture Ethnocentric - home office with expats abroad Polycentric - home office with decentralization abroad - local labour in local country Regiocentric - maximize regional similarities Geocentric - global orientation 4. Ability to design, and function in, flexible organizations Two aspects: (a) Ability to work with different organization structures/patterns of relationships in different cultural contexts (b) Ability to respond to turbulent nature of environment - flexible response (teams, matrix, etc.) - quick response ( especially time-to-market for new products)

5. Ability to work with others, especially in teams ( a corollary to 4 - Emphasis here is on heterogeneous composition of teams and groups - technology/ function - culture/race/nationality 6. Ability to communicate - not only facility with technical/impersonal means, e.g. Internet, etc. but particularly facility with personal communication - verbal (languages) - non-verbal (body language, gestures, etc.) ## What impact are my words (and actions) really having?? 7. Ability to learn and transfer knowledge: - me to them - them to me - regions to regions - regions to H/O

Developing Global Managers: 20% to 70% of expat managers fail…WHY?? Under-researched area But we do know that for success - people must adapt - both the manager and his family - people must have expertise - must interact with, try to understand, local culture and its people Role of training is variable - depends to some extent on the intensity of the cultural involvement overseas. N.B. There is the problem of re-integration after completion of assignment - problem of generating a permanent cadre of expats “ Working abroad unfits you for working at home.”