Global Leadership Challenge

2008

E. James Simon
www.simonassociates.org
Global Leadership
Challenge
Global Leadership Challenge

2008

Global Leadership Challenge

2008

rigorous methodology
identifying the very best business
leaders.

Global Leadership Challenge

2008

There is a lot one person can do.
Global Leadership Challenge

2008

There is a lot one person can do.

Dennis Kozlowski (Tyco Intl)
Convicted - grand larceny, conspiracy, falsifying business
records, violating business law. Serving 8-25 year
sentence at Mid-State Correctional Facility, New York


Global Leadership Challenge

2008

The only real values are the eternal ones.
Global Leadership Challenge

2008

The only real values are the eternal ones.

Bernie Ebbers (MCI World Com)
Convicted- conspiracy, securities fraud, filing false
statements. Serving 25 years in Federal Prison,
Oakdale, Louisiana.
Global Leadership Challenge

2008

secrets to our success creating big
pockets of entrepreneurship throughout
the company
Global Leadership Challenge

2008

secrets to our success creating big
pockets of entrepreneurship throughout
the company
Ken Lay (Enron)
Convicted - conspiracy, fraud. Died before sentencing.

Global Leadership Challenge

2008

Once you think you can write down what
made you successful, you wont be.
Global Leadership Challenge

2008

Once you think you can write down what
made you successful, you wont be.

Lou Gerstner (IBM)
Global Leadership Challenge

2008

Americans are too informal in
their dealings with their
counterparts abroad.

P.M. Forni, Johns Hopkins University

Bush Gropes Merkel
Global Leadership Challenge

2008

Grand Epic of Globalization
Merger of equals
Its not just a US problem!
Daimler-Chrysler Merger
Jurgen E. Schrempp, Chairman
Global Leadership Challenge

2008

Mergers & Acquisitions
LBO
Venture Capital
Hedge Funds
Private Equity
+ Debt

=
Global Leadership Challenge

2008

Need
to:
Rapidly!
Drop
Costs
Raise Revenue
Global Leadership Challenge

2008

YR
1 $50m x 6 = $300m
EBITDA MULTIPLE

5 $100m x 6 = $600m

+
$75 million
investment
Private Equity
Global Leadership Challenge

2008

Creates thriving businesses
Clear vision, focus
Limited time horizon vs. built to last
Measurable goals
Private Equity
Global Leadership Challenge

2008

Aligns goals with compensation
Exciting ownership mentality
Renewed passion
Speed!
Private Equity
Global Leadership Challenge

2008

Global Leadership Challenge

2008

Entrenched management
Inertia
Fear of change
Bond/Equity market concerns (Q2Q)
P/T Director oversight (vs. skin in game)
Traditional Company
Global Leadership Challenge

2008

1. Overestimating
American Globalization

Ten Deadly Cultural Sins
Global Leadership Challenge

2008

PC, Internet, Workflow Software
No boundaries
Standardization Strategy
Borders Still Matter
Customized, Localized Strategy
Need to be Creative in
Negotiating Around Cultural
Differences
Defining Global Strategy
Today's Reality is Somewhere In Between
Global Leadership Challenge

2008

2. Taking speaking English for granted

Ten Deadly Cultural Sins
Global Leadership Challenge

2008

3. Failing to perceive your own culture
Ten Deadly Cultural Sins
Global Leadership Challenge

2008

Culture hides much more than it reveals and,
strangely enough, what it hides, it hides most
effectively from its own participants.

Edward T. Hall

Global Leadership Challenge

2008

The failure to perceive yourself as operating in a
culture subtly creates the dynamic that youre
operating in standard mode, and everyone else is
deviant.
Milton Bennett
Intercultural Communication institute
Global Leadership Challenge

2008

4. Not standing in your hosts shoes
Ten Deadly Cultural Sins
Global Leadership Challenge

2008

5. Inability to live with difference

Ten Deadly Cultural Sins

We dont see things as they are,
we see things as we are.
Anais Nin

Global Leadership Challenge

2008

6. Not investing in relationships
Procurement, price-driven, objectivity vs. only doing
business with people you know!

Ten Deadly Cultural Sins
Global Leadership Challenge

2008

7. Jumping immediately from vision to
action
Ten Deadly Cultural Sins
Global Leadership Challenge

2008

8. Shock and Awe
Ten Deadly Cultural Sins
Global Leadership Challenge

2008

9. Selecting the wrong people
Ten Deadly Cultural Sins
Global Leadership Challenge

2008

10. Everyone wants to learn - no one
wants to be taught.
Ten Deadly Cultural Sins
Global Leadership Challenge

2008

Transformational Global
Leadership
Global Leadership Challenge

2008

Leaders must understand the values and opinions of
their followers rather than assuming absolute
authority to enable a productive dialogue about
what the group stands for and how it should act.

Reicher, Haslan & Platow
The New Psychology of Leadership
Scientific American Mind

Global Leadership Challenge

2008

The most effective leaders define their groups social
identity to fit with the policies they plan to promote,
enabling them to position those policies as
expressions of what their constituents already
believe.

Reicher, Haslan & Platow
The New Psychology of Leadership
Scientific American Mind

Global Leadership Challenge

2008

Leaders Shaping Vision
Leaders must:
Understand
employees
and reflect
their needs
and values
Help shape
employees
values and
aspirations
sweet spot successful vision
Global Leadership Challenge

2008

Emotional Intelligence
Primal Leadership
Social Intelligence
Global Leadership Challenge

2008

Emotional self-awareness: reading ones own
emotions and recognizing their impact.
Emotional self-control: keeping disruptive
emotions and impulses under control.
Adaptability: Flexibility in adapting to changing
situations.


Emotional Intelligence - EQ
Global Leadership Challenge

2008

Empathy: sensing others emotions,
understanding their perspective, taking active
interest.
Relationship management: inspiring,
influencing, guiding, change management.

Emotional Intelligence - EQ
Global Leadership Challenge

2008

Primal empathy: Feeling with others; sensing
non-verbal emotional signals.
Attunement: Listening with full receptivity;
attuning to a person.
Empathetic accuracy: Understanding another
persons thoughts, feelings, and intentions.
Social cognition: knowing how the social world
works.
Social Intelligence - SI
Global Leadership Challenge

2008

Synchrony: interacting smoothly at the non
verbal level.
Self presentation: presenting ourselves
effectively.
Influence: Shaping the outcome of social
interactions.
Concern: Caring about others needs and acting
accordingly.
Social Intelligence - SI
Global Leadership Challenge

2008

EQ + SI + Cultural IQ
New Transformational
Global Leader
=
RFT*
*Rapid Financial Transformation
Global Leadership Challenge

2008

The New Global Leader must
balance the critical elements of
Emotional, Social & Cultural IQ
with the unrelenting drive for timely
financial performance &
improvement.
Global Leadership Challenge

2008

Not everything that matters can be counted, not
everything that can be counted matters.

Albert Einstein


You cant number-crunch culture.

Jack Welch

Global Leadership Challenge

2008

We think too much. We feel too little.

Charlie Chaplin


Global Leadership Challenge

2008

Thank You!
www.simonassociates.org