ATD Blog
New Study Examines How to Develop Globally Competent Leaders
Wed Jun 24 2015
Content
Technological advancements have brought about a global interconnectedness that has forever changed business. This new interconnectedness transforms how business is done and provides access to a wealth of new and diverse customers, suppliers, partners, talent, or competitors.
Technological advancements have brought about a global interconnectedness that has forever changed business. This new interconnectedness transforms how business is done and provides access to a wealth of new and diverse customers, suppliers, partners, talent, or competitors.
Content
Operating successfully in this new world requires a new set of skills—those that enable business leaders to operate effectively both within and across different cultures. But what are the critical skills that leaders need to be successful? And how can companies ensure they develop leaders with the skills and expertise to navigate the global business landscape?
Operating successfully in this new world requires a new set of skills—those that enable business leaders to operate effectively both within and across different cultures. But what are the critical skills that leaders need to be successful? And how can companies ensure they develop leaders with the skills and expertise to navigate the global business landscape?
Content
To pinpoint these skills, the University of North Carolina Kenan-Flagler Business School and the Human Capital Institute surveyed more than 300 HR and training and development professionals. Their findings are reported in Compete and Connect: Developing Globally Competent Leaders, which examines how organizations can develop global competence in their workforce.
To pinpoint these skills, the University of North Carolina Kenan-Flagler Business School and the Human Capital Institute surveyed more than 300 HR and training and development professionals. Their findings are reported in Compete and Connect: Developing Globally Competent Leaders, which examines how organizations can develop global competence in their workforce.
Content
“A globally competent individual has the right attitude, knowledge, skills and functional business expertise to effectively work within and across cultures,” says David Roberts, a UNC Kenan-Flagler professor who teaches about effecting organizational change to achieve strategic goals for UNC Executive Development.
“A globally competent individual has the right attitude, knowledge, skills and functional business expertise to effectively work within and across cultures,” says David Roberts, a UNC Kenan-Flagler professor who teaches about effecting organizational change to achieve strategic goals for UNC Executive Development.
Content
When asked about the qualities most important for leaders to work effectively in a global business environment, the top answers are:
When asked about the qualities most important for leaders to work effectively in a global business environment, the top answers are:
Content
multicultural sensitivity and awareness (57 percent)
multicultural sensitivity and awareness (57 percent)
Content
ability to communicate effectively (49 percent)
ability to communicate effectively (49 percent)
Content
strategic thinking (47 percent)
strategic thinking (47 percent)
Content
leadership and the ability to influence others (45 percent)
leadership and the ability to influence others (45 percent)
Content
respect for differences (44 percent)
respect for differences (44 percent)
Content
ethics and integrity (42 percent)
ethics and integrity (42 percent)
Content
flexibility and willingness to change (41 percent)
flexibility and willingness to change (41 percent)
Content
adaptability in new environments (40 percent)
adaptability in new environments (40 percent)
Content
collaborative (37 percent)
collaborative (37 percent)
Content
decision-making ability (36 percent).
decision-making ability (36 percent).
Content
Some 63 percent of respondents say the need to develop global competence is urgent, and 92 percent agree that this can be developed through training. “Unfortunately, global leadership development at most organizations is in a poor state,” contends the UNC report.
Some 63 percent of respondents say the need to develop global competence is urgent, and 92 percent agree that this can be developed through training. “Unfortunately, global leadership development at most organizations is in a poor state,” contends the UNC report.
Content
According to the findings:
According to the findings:
Content
organizations are underdeveloped in multicultural sensitivity (38 percent)
organizations are underdeveloped in multicultural sensitivity (38 percent)
Content
high-potentials managers are able to meet future business needs (43 percent)
high-potentials managers are able to meet future business needs (43 percent)
Content
organizations have a strong leadership pipeline (35 percent)
organizations have a strong leadership pipeline (35 percent)
Content
senior leaders are satisfied with their current bench strength (24 percent)
senior leaders are satisfied with their current bench strength (24 percent)
Content
organizations with global operations struggle to recruit talent for global leadership positions (52 percent).
organizations with global operations struggle to recruit talent for global leadership positions (52 percent).
Content
So what can organizations do to develop global competence? Regrettably, the study finds that the top two most popular ways organizations currently develop global competence are still passive: international travel and encouraging networking outside of the organization. Indeed, the survey reports that “most organizations aren’t taking a proactive or hands-on approach,” even though the “most effective methods are deliberate and experiential.”
So what can organizations do to develop global competence? Regrettably, the study finds that the top two most popular ways organizations currently develop global competence are still passive: international travel and encouraging networking outside of the organization. Indeed, the survey reports that “most organizations aren’t taking a proactive or hands-on approach,” even though the “most effective methods are deliberate and experiential.”
Content
“They need to do much more than send individuals on business trips; they need a complete top-to-bottom training strategy. That kind of investment gives both organizations and individuals a competitive advantage,” Roberts says.
“They need to do much more than send individuals on business trips; they need a complete top-to-bottom training strategy. That kind of investment gives both organizations and individuals a competitive advantage,” Roberts says.
Content
A 2014 American Management Association (AMA) study, Global Leadership Development: Preparing Leaders for a Globalized Market, offers organizations some general guidance for developing global leaders. According to AMA, leaders should practice developing and executing strategic business plans, learn to communicate and work effectively with diverse internal and external colleagues and customers, and be trained on how to deal with change, complexity, and uncertainty in a confident manner. High performing organizations know that the four elements essential for effective global leadership development and market performance are:
A 2014 American Management Association (AMA) study, Global Leadership Development: Preparing Leaders for a Globalized Market, offers organizations some general guidance for developing global leaders. According to AMA, leaders should practice developing and executing strategic business plans, learn to communicate and work effectively with diverse internal and external colleagues and customers, and be trained on how to deal with change, complexity, and uncertainty in a confident manner. High performing organizations know that the four elements essential for effective global leadership development and market performance are:
Content
immersion in cultures and customers for local markets
immersion in cultures and customers for local markets
Content
focus on collaboration and influence
focus on collaboration and influence
Content
selection made by objective behavioral evidence
selection made by objective behavioral evidence
Content
training curriculum based on long term goals.
training curriculum based on long term goals.
Content
Specifically, the UNC study finds that there are a number of methods that can help organizations develop leaders with global skills, including:
Specifically, the UNC study finds that there are a number of methods that can help organizations develop leaders with global skills, including:
Content
increasing the diversity of the senior executive leadership
increasing the diversity of the senior executive leadership
Content
developing knowledge and appreciation of different cultures and languages
developing knowledge and appreciation of different cultures and languages
Content
providing immersion experiences that range from months to extensive cultural learning programs
providing immersion experiences that range from months to extensive cultural learning programs
Content
having opportunity for cross-border projects and teams
having opportunity for cross-border projects and teams
Content
implementing job rotation across geographic regions, business divisions, and functions
implementing job rotation across geographic regions, business divisions, and functions
Content
cultivating interpersonal and social ties among people based in different locations.
cultivating interpersonal and social ties among people based in different locations.
Content
The message is clear: Every organization will become global in one way or another, driving the need for companies to work today to enhance the global competencies of their leaders. “Key to success is understanding the variances of not just the locations you expand your business to, but also the unique needs and development requirements of the leaders you’re trying to develop. Through such a tailored approach, organizations can be sure their leaders have the global competencies to be effective wherever their business takes them,” concludes the UNC report.
The message is clear: Every organization will become global in one way or another, driving the need for companies to work today to enhance the global competencies of their leaders. “Key to success is understanding the variances of not just the locations you expand your business to, but also the unique needs and development requirements of the leaders you’re trying to develop. Through such a tailored approach, organizations can be sure their leaders have the global competencies to be effective wherever their business takes them,” concludes the UNC report.
Content
To learn more, download Compete and Connect: Developing Globally Competent Leaders .
To learn more, download Compete and Connect: Developing Globally Competent Leaders.