Leadership Development in a Global World: The Role of Companies and Business Schools

269 Pages·2012·1.66 MB·English

by  Jordi Canals (eds.)

Leadership Development in a Global
World
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Leadership Development in a
Global World
The Role of Companies and
Business Schools
Edited by
JORDI CANALS
Dean and Professor of General Management,
IESE Business School
© Jordi Canals 2012
Individual chapters © contributors 2012
Softcover reprint of the hardcover 1st edition 2012 978-0-230-35513-2
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10 9 8 7 6 5 4 3 2 1
21 20 19 18 17 16 15 14 13 12
Contents
List of Figures and Tables vii
Preface and Acknowledgments viii
About the Authors xii
Part 1: Developing Leadership Capabilities in a Global World
1.1 The Development of General Management
Capabilities in a Global World 3
by Robert F. Bruner, Robert M. Conroy and Scott A. Snell
1.2 Rethinking Global Leadership Development: Designing
New Paradigms 29
by Jordi Canals
1.3 The ABCDs of Leadership 3.0 62
by Pankaj Ghemawat
1.4 Educating Leaders for a Global Century 90
by Nitin Nohria
Part 2: Leadership Development in a Global Context: The Contribution
of Business Schools
2.1 Combining Purpose and Performance: A New Look
at Global Business Schools 105
by Dipak Jain and Matt Golosinski
v
vi Contents
2.2 What Role Management Development Has to Play
in Growing International Companies 129
by Pedro Nueno
2.3 Five Easy Questions 145
by Edward A. Snyder
Part 3: Leadership Development, Globalization and Cross-Cultural Issues
3.1 Globalization and Sustainable Leadership 163
by Marta Elvira and Anabella Davila
3.2 Global Leadership in Multicultural Teams 188
by Yih-teen Lee
3.3 The New Asia: Corporate Challenges and
Leadership Development 214
by Randall Morck and Bernard Yeung
3.4 Accounting for Culture in the Development of
Global Leaders 227
by Carlos Sánchez-Runde, Luciara Nardon
and Richard M. Steers
Index 245
List of Figures and Tables
Figures
1 Toward a Management Development Concept 8
2 C ompetency refinement process: What does success
look like? 12
3 Program design process 14
4 Program design process: A deeper perspective 16
5 Components of a development experience 17
6 S tudent development process: How do students navigate
their learning? 18
7 Global leaders’ competencies 39
8 Global strategies for business schools: A profile 53
9 Distribution of Hitachi’s sales, 2010 73
10 Distribution of Toyota’s profits (2005–10) 74
11 A holistic model 111
12 A framework of global leadership in multicultural teams 191
Tables
1 Sample of competencies by firms 21
2 Frequency of competency descriptors––a study of 19 firms 26
3 Summary of competency descriptors 27
4 Tasks and responsibilities 34
5 Business schools: Dimensions of performance as
global institutions 55
6 Popularity of three perspectives on globalization 68
7 The CAGE framework for country-level analysis 82
8 The evolution of global business 106
9 Evolution of management education 107
10 ROI 113
11 East–West foundations of leadership 240
vii
Preface and Acknowledgments
Throughout the twentieth century, most Western companies with
international activities were still operating in homogeneous markets, employ-
ing people with similar values. With strong economic growth in China, India,
Russia, Brazil, Mexico or Turkey, among others, multinational companies
started to operate in those countries more actively, profiting from trade and
foreign investment liberalization. Over the past few years, this trend has accel-
erated, only punctuated by a fall in international trade and investment after
the 2008 financial crisis.
This new business context is essentially different from the dominant one
just a decade ago. Companies in a variety of industries are generating a sub-
stantial share of their revenues in new growth markets. Their business poten-
tial looks weak in mature economies—their home markets—and strong in the
new markets. As a result, the need to develop local leaders in growth markets
is more acute. Nevertheless, as companies try to cope better with globaliza-
tion, senior managers need to think how to grow the next generation of global
leaders who could manage business units locally, regionally or globally, across
cultures and contexts, and eventually have overall responsibilities for the
whole company, not just for a division or a subsidiary.
Companies that want to succeed in tackling these challenges need to think
deeply about how to speed up talent development in an integrated global
economy. Good leadership is indispensable in any company. The need for
quality leadership in growth markets is crucial to generate sustainable success.
These issues are more pressing as we see local champions in those growth
markets expanding globally and increasing their capacity to attract the best
local talent.
Many large Western international companies are still managed from head-
quarters, far away from growth markets, not only in terms of physical dis-
tance, but in the cultural understanding of those countries, and their cultures
and values. Still few Western companies have senior managers originally from
growth markets sitting on the board of directors or the board of management,
or having global responsibilities within their organizations. Many of them still
rely on the work of expatriate executives to run foreign operations.
viii
Preface and Acknowledgments ix
International companies also have a tough time in recruiting local young
talent in growth markets. Talented people increasingly want to work with
some growing local champions. Moreover, the levels of loyalty and com-
mitment of those young people to Western companies operating in growth
markets seem to be lower than in mature markets. Even if the numbers are
smaller, Asian companies operating in Europe and North America experience
the same pain.
Integration is also another challenge for companies that do well in recruit-
ing local talent. Integrating local professionals into a global company and
leveraging their unique knowledge and expertise is always complex. In a nut-
shell, what happens is that the learning that occurs at the local level is seldom
transferred to other parts of the firm.
Increasing globalization, the economic shift to Asia and the demographic
and social changes that it brings about, require a different type of leadership
in the business world. International business leaders need to think beyond
market penetration and off-shoring in growing markets; they also need to
develop a long-term business strategy that includes a talent development
strategy fully aligned with those new realities. Otherwise, their efforts in
emerging markets may end up in failure.
This book presents a collection of papers that deal with the topic of
global leadership development. The origin of most of the papers is the
2011 International Conference on “Global Leadership Development in an
Integrated World: Implications for Companies and Business Schools,” held
at IESE (Barcelona Campus) on 7–8 April, 2011. The audience consisted of
CEOs, HR managers and business school deans, faculty and a dministrators.
The discussions around the presentations were extremely engaging and
insightful.
The authors of the chapters are well-known scholars and business schools’
deans who come from different backgrounds. Perhaps one of the salient quali-
ties of this book is the variety of perspectives from which authors try to tackle
the challenge of leadership development in a global economy. The different
chapters cover organizational, economic and sociological perspectives of lead-
ership development, and include important contributions to the role of busi-
ness schools in this process.
This book is organized around three sections. Part 1 is titled “Developing
Leadership Capabilities in a Global World.” The chapters in this section
present and analyze different capabilities that leaders need to develop in an