DEVELOPING GLOBAL MANAGEMENT February, 2010 KM-RDJ Copyright © Prof. R. D. Joshi 2010 Prof. R. D. Joshi

Walk Through  Key Issues of a Globalizing Firm  The New Performance Paradigm  Reasons for Shift in Global Management  Factors influencing Global Management  Traditional vs. the Global Mindset  Developing Global Management  Global Management Skills  Case Study

Key Issues of a Globalizing Firm - I  Access to open markets  Demanding customers  Sustained performance improvement  Business Plan  Need for rapid, flexible decision making and communication

Key Issues of a Globalizing Firm - II  Constant growth in technological innovation  Critical importance of relationship management  Diversity and complexity  Managing regulatory and social environment  Business Intelligence

PastPresent OrganisationsProject teams Time to trainTime to perform Generic technologyJob/task specific technology Incremental improvementsOrder of magnitude gains Automating known processesInnovative new processes Preplanned trainingAdaptive performance support TrainedReadiness Technology operatorsProcesses managers The New Performance Paradigm Source : H.Wayne Hodgins, Into the Future: A Vision Paper, National Governors’ Association (NGA) and American Society for Training and Development (ASTD), 2000, pp

A few important reasons for Shift in Global Management  Global scale efficiency and competitiveness.  National level responsiveness and flexibility.  Cross market capacity to leverage learning on worldwide basis.

Factors influencing Global Management

Traditional vs. the Global Mindset Traditional MindsetGlobal Mindset General perspective  Functional specialized  Cross functional  Cross-cultural  Enabling boundary less organizations Organisational Life  Forces are prioritized  Conflict is eliminated  Hierarchy is trusted  Contradictions are balanced (global standards vs. local practices)  Conflict is leveraged as an opportunity  Networked processes are trusted  Global objectives are supported  Influence, persuasion, and presentation skills are key Work style  Personal self- awareness primary  Individual mastery primary  Cultural and personal self-and other awareness  Networked collaboration  Teamwork primary  Managing in a global matrix  Effective use of communication technologies

Traditional mindsetGlobal mindset View of change  Surprises are avoided  Change is seen as threat  Change is expected, valued and actively enabled.  Change is seen as opportunity  Change is seen as personal growth Learning  Specific knowledge and skills are mastered  Training is value  Broad-based lifelong learning is engaged.  Education and learning are valued  Global learning is key success factor  Responsible for career development Traditional vs. the Global Mindset

Developing Global Management Degree of Difficulty Global Business Responsibility Expatriate Assignment (different country and language) Expatriate Assignment (neighbouring country, same language) Global Account Responsibility Global Team Participation Working for a Model Leader International Travel Mentor Relationship

Developing Global Management Organisations to provide:  Varied job experience  International business travel  Multi-cultural team work  Contacts with Executive Role Models  Global account management  Expatriate assignments  Global business responsibility

Global Management Skills - I  Connecting resources, innovational and entrepreneuralship  Ability to manage complexity  Managing change and diversity  Learning  Networking

Global Management Skills - II  Team Management  Talent Management  Managing cross-cultural issues  Effective communication  Self-management

Case Study  Korean companies (LG and Samsung)  Acquiring substantial market share in India scoring over India competitors

Case Study (contd..) Strategy I  Got latest products  Customised them to Indian products  Uniform training to al technicians  Brands positioned as Value for Money  Spent large sums on Brand Promotion

Case Study (contd..) Strategy II  To change quality perception focused on technological achievements (Samsung: World Leader in colour Picture Tubes and Semi-conductors)  Built on Korean heritage rather than hiding it.  Treated India differently from other Asian Markets.

Strategy III  Just-in-time Supply Principle with its vendors.  Drafted Korean culture (Aggressive as compared to Japanese resulting in First Mover Advantage)  LG has no more than 13 Koreans in staff of over 4,000. Samsung has less than around 30 in 4,000 (GLOCAL) Case Study (contd..)

Insights  Innovation leads business  An era of Indian MNCs (Global Powerhouses has emerged) and getting stronger  Designing diverse strategies

All The Best to you in your Global Aspirations !