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© 2012 by Gregory Zerovnik. All right reserved.
International Leadership
Gregory F. Zerovnik, EMBA, PhD
July 19, 2012
© 2012 by Gregory Zerovnik. All right reserved.
Topics
 Leadership
 Definition & Uses
 Strategic Keys for Success
 Rol...
© 2012 by Gregory Zerovnik. All right reserved.
―It is more important to do the right thing, than
to do things right.‖ —Pe...
© 2012 by Gregory Zerovnik. All right reserved.
Leadership and Business
 Good results are not the same as good leadership...
© 2012 by Gregory Zerovnik. All right reserved.
Leadership Theories
 Trait theories
 Leaders are born, not made
 Behavi...
© 2012 by Gregory Zerovnik. All right reserved.
Leader Traits (characteristics)
 Physical vitality and stamina
 Intellig...
© 2012 by Gregory Zerovnik. All right reserved.
Leader Behaviors
Concern for task
 Concrete objectives / organization is...
© 2012 by Gregory Zerovnik. All right reserved.
Contingency Theories, Pt. I
4 ways to lead / 4 situations
 Telling
 Hig...
© 2012 by Gregory Zerovnik. All right reserved.
Contingency Theories, Pt. II
Primal Leadership1 (emotional intelligence)
...
© 2012 by Gregory Zerovnik. All right reserved.
Transformational Theories
Transactional leadership
 Short-term focus
 F...
© 2012 by Gregory Zerovnik. All right reserved.
Transformational Theories
Three main views
 Team leadership
 See works ...
© 2012 by Gregory Zerovnik. All right reserved.
Summary of Theories
 Trait theories
 Leaders seem to have certain person...
© 2012 by Gregory Zerovnik. All right reserved.
Unlocking leadership success
 Current environment:
 High uncertainty
 R...
© 2012 by Gregory Zerovnik. All right reserved.
Josef Ackerman
 CEO, Deutschebank
 1980s – 80% of revenue came from Germ...
© 2012 by Gregory Zerovnik. All right reserved.
Carlos Ghosn
 Two kinds of crisis:
 Internal crisis
 The company is not...
© 2012 by Gregory Zerovnik. All right reserved.
Ellen Kullman
 Chairman of the Board, DuPont Corp.
 Pay attention to the...
© 2012 by Gregory Zerovnik. All right reserved.
Shimon Peres
President of Israel
―States have lost their importance and s...
© 2012 by Gregory Zerovnik. All right reserved.
Leaders & Governance
 Owners and Managers
 Managers are employed by owne...
© 2012 by Gregory Zerovnik. All right reserved.
Leaders & Culture
 Geert Hofstede
 Original study in 1970s for IBM
 Upd...
© 2012 by Gregory Zerovnik. All right reserved.
Corporate Culture
 Corporation culture reflects two components
 National...
© 2012 by Gregory Zerovnik. All right reserved.
Power Distance
 The extent to which the less powerful members of
organiza...
© 2012 by Gregory Zerovnik. All right reserved.
Power Distance
Rank Country Score
1 Malaysia 104
4 Philippines 94
8/9 Indo...
© 2012 by Gregory Zerovnik. All right reserved.
Individualism & Collectivism
 The degree to which individuals are integra...
© 2012 by Gregory Zerovnik. All right reserved.
Individualism & Collectivism
People’s Republic
of China
11
Source: http://...
© 2012 by Gregory Zerovnik. All right reserved.
Masculinity / Femininity
 How roles are distributed between the genders
...
© 2012 by Gregory Zerovnik. All right reserved.
Masculinity / Femininity
Source: http://www.geert-hofstede.com/
Rank Count...
© 2012 by Gregory Zerovnik. All right reserved.
Uncertainty Avoidance
 Society's tolerance for uncertainty and ambiguity
...
© 2012 by Gregory Zerovnik. All right reserved.
Uncertainty Avoidance
Source: http://www.geert-hofstede.com/
Rank Country ...
© 2012 by Gregory Zerovnik. All right reserved.
Long-term Orientation
 This fifth dimension was found in a study among st...
© 2012 by Gregory Zerovnik. All right reserved.
Long-term Orientation
Source: http://www.geert-hofstede.com/
Rank Country ...
© 2012 by Gregory Zerovnik. All right reserved.
National Culture Summary
© 2012 by Gregory Zerovnik. All right reserved.
Corporate Culture
 Typical corporate culture terms include:
 Innovation ...
© 2012 by Gregory Zerovnik. All right reserved.
Summary
 International Leadership Requirements
 Good traits
 Effective ...
© 2012 by Gregory Zerovnik. All right reserved.
Thank you!
谢谢
Xièxiè
I wish to acknowledge the teachingsof Dr. Peter Druck...
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Intl ldrshp 7 19-2012

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This presentation was given to visiting Chinese business managers and party members for the California State University Extension University's China Program.

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Intl ldrshp 7 19-2012

  1. 1. © 2012 by Gregory Zerovnik. All right reserved. International Leadership Gregory F. Zerovnik, EMBA, PhD July 19, 2012
  2. 2. © 2012 by Gregory Zerovnik. All right reserved. Topics  Leadership  Definition & Uses  Strategic Keys for Success  Role of Culture / People as Groups  National culture  Business culture  The Company  Big 5 Trait Theory  How personality correlates with business
  3. 3. © 2012 by Gregory Zerovnik. All right reserved. ―It is more important to do the right thing, than to do things right.‖ —Peter F. Drucker  Leaders – Decide on the right thing to do  Managers – Execute the right thing, in the right way Who are Leaders? Classical Leaders: Sun Tzu Julius Caesar Genghis Khan Alexander the Great George Washington
  4. 4. © 2012 by Gregory Zerovnik. All right reserved. Leadership and Business  Good results are not the same as good leadership  Other factors may come into play:  Political connections  Corruption  Joss  There are good leaders (Mother Teresa) and bad leaders (Hitler)  Whether good or bad, the leader is the person in charge Business Leaders: Sam Walton, Walmart Carlos Ghosn, Nissan Ratan Tata, diversified industries Yang Yuanqing, Lenovo
  5. 5. © 2012 by Gregory Zerovnik. All right reserved. Leadership Theories  Trait theories  Leaders are born, not made  Behavioral theories  Leadership can be taught/learned  Contingency theories  It all depends on the situation  Transformational theories  Ways to change organizations for the better
  6. 6. © 2012 by Gregory Zerovnik. All right reserved. Leader Traits (characteristics)  Physical vitality and stamina  Intelligence and action- oriented judgment  Eagerness to accept responsibility  Task competence  Understanding followers and their needs  Skill in dealing with people  Need for achievement  Capacity to motivate people  Courage and resolution  Trustworthiness  Decisiveness  Self-confidence  Assertiveness  Adaptability/flexibility
  7. 7. © 2012 by Gregory Zerovnik. All right reserved. Leader Behaviors Concern for task  Concrete objectives / organization is key Concern for people  Followers are people, not just “production units” Directive leadership  Giving and taking orders / discipline Participative leadership  Sharing decision-making with others
  8. 8. © 2012 by Gregory Zerovnik. All right reserved. Contingency Theories, Pt. I 4 ways to lead / 4 situations  Telling  High task / low relationship (Theory X, Taylorism)  Selling  High task / high relationship (coaching the willing, less able)  Participating  Low task / high relationship (good abilities, low willingness)  Delegating  Low task / low relationship (intrinsically motivated teams)
  9. 9. © 2012 by Gregory Zerovnik. All right reserved. Contingency Theories, Pt. II Primal Leadership1 (emotional intelligence) 6 leadership styles (behavioral overtones)  Visionary: values are key  Coaching: delegation  Affiliative: warm, people-focused  Democratic: shared commitment  Pacesetting: classic management by objectives  Commanding: command &control, authoritarian 1Goleman, Boyatsiz & McKee
  10. 10. © 2012 by Gregory Zerovnik. All right reserved. Transformational Theories Transactional leadership  Short-term focus  Fast-turnaround  Crisis applications Transformational leadership  Long-term orientation  Strategic objectives in mind  Crisis prevention or mitigation
  11. 11. © 2012 by Gregory Zerovnik. All right reserved. Transformational Theories Three main views  Team leadership  See works by Meredeith Belbin or Jean Lipman- Blumen  Leaders as catalysts of change  See works by Warren Bennis or Stephen Covey  Leaders as strategic visionaries (charismatic leaders)  See works by Peter Senge or Gordon Davidson
  12. 12. © 2012 by Gregory Zerovnik. All right reserved. Summary of Theories  Trait theories  Leaders seem to have certain personality traits in common  Behavioral theories  Leaders are people who do things, who perform  Contingency theories  How one chooses to lead depends on circumstances  Transformational theories  Long-term, strategic efforts to change organizations for the better
  13. 13. © 2012 by Gregory Zerovnik. All right reserved. Unlocking leadership success  Current environment:  High uncertainty  Rapid pace of change  Trust has eroded  Four leaders share their views1 1Source: McKinsey Quarterly, ―Leading in the 21st Century.‖ 信 任
  14. 14. © 2012 by Gregory Zerovnik. All right reserved. Josef Ackerman  CEO, Deutschebank  1980s – 80% of revenue came from Germany  mid 1990s – still at 70%  Today, only 38& of revenue comes from Germany ―Managing risk also has become much more complex for banks. It’s not only market risk; there is more and more political and social risk. Increasingly, financial markets are becoming political markets. That requires different skills—skills not all of us have acquired at university; how to properly deal with society, for example, a stakeholder that has immensely grown in importance since the financial crisis.‖
  15. 15. © 2012 by Gregory Zerovnik. All right reserved. Carlos Ghosn  Two kinds of crisis:  Internal crisis  The company is not being managed well  Solution can be found internally  External crisis  The company faces environmental threats  Earthquake in Japan or collapse of Lehman Bros.  The strategy is not the question; how to adapt the strategy is the key ―I think one of the reasons Nissan has been able to cope with external crises better than some of our competitors is that we have a more diverse, multinational culture. We don’t just sit around waiting for the solution to come from headquarters. We are accustomed to always looking around, trying to find out who has the best ideas. Our people in the US talk to our people in Japan on an equal level. We have a lot more reference points.‖
  16. 16. © 2012 by Gregory Zerovnik. All right reserved. Ellen Kullman  Chairman of the Board, DuPont Corp.  Pay attention to the mega-trends  Population growth  Resource & energy sustainability  Environmental responsibility ―We matched our focus, our research and development, and our capital expenditures up against megatrends like these over the last five years. This is the future, so we need to understand how our science relates to it.‖
  17. 17. © 2012 by Gregory Zerovnik. All right reserved. Shimon Peres President of Israel ―States have lost their importance and strength. The old theories—from Adam Smith to Karl Marx—have lost their value because they are based on things like land, labor, and wealth. All of that has been replaced by science. Ideas are now more important than materials. And ideas are unpredictable. Science knows no customs, no borders. It doesn’t depend on distances or stop at a given point…. It is a new world. You may have the strongest army—but it cannot conquer ideas, it cannot conquer knowledge.‖
  18. 18. © 2012 by Gregory Zerovnik. All right reserved. Leaders & Governance  Owners and Managers  Managers are employed by owners  They act as agents of the owners  Their authority comes from the owners, who are directly represented by the board of directors  The Board of Directors approves corporate strategy  The top management team carries out the strategy  The CEO should answer to the board  The Board should be independent of the managers  Outside directors must be part of a board  In China, many corporations are public-private with ownership shared by the state
  19. 19. © 2012 by Gregory Zerovnik. All right reserved. Leaders & Culture  Geert Hofstede  Original study in 1970s for IBM  Updated in 2001  Five factors of culture  Power-Distance  Individualism-Collectivism  Masculinity-Femininity  Uncertainty Avoidance  Long-Term vs. Short-Term Orientation
  20. 20. © 2012 by Gregory Zerovnik. All right reserved. Corporate Culture  Corporation culture reflects two components  National culture (we have already studied)  Group norms  Group Norms  Group norms depend on the influence of both leaders and followers  Both are influenced by National Culture  But followers are influenced by National Culture and individual personalities  Peers and subordinates  Leaders
  21. 21. © 2012 by Gregory Zerovnik. All right reserved. Power Distance  The extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally. This represents inequality (more versus less), but defined from below, not from above. It suggests that a society's level of inequality is endorsed by the followers as much as by the leaders. Source: http://www.geert-hofstede.com/
  22. 22. © 2012 by Gregory Zerovnik. All right reserved. Power Distance Rank Country Score 1 Malaysia 104 4 Philippines 94 8/9 Indonesia 78 10/11 India 77 13 Singapore 74 15/16 Hong Kong 68 21/23 Thailand 64 27/28 South Korea 60 29/30 Taiwan 58 Rank Country Score 33 Japan 54 38 United States 40 39 Canada 39 41 Australia 36 People’s Republic of China 80 Source: http://www.geert-hofstede.com/
  23. 23. © 2012 by Gregory Zerovnik. All right reserved. Individualism & Collectivism  The degree to which individuals are integrated into groups.  Individualist  Societies with loose ties between individuals: Everyone is expected to look after him/herself and his/her immediate family.  Collectivist  Societies in which people from birth onwards are integrated into strong, cohesive in-groups, often extended families (with uncles, aunts and grandparents) which continue protecting them in exchange for unquestioning loyalty. Source: http://www.geert-hofstede.com/
  24. 24. © 2012 by Gregory Zerovnik. All right reserved. Individualism & Collectivism People’s Republic of China 11 Source: http://www.geert-hofstede.com/ Rank Country Score 1 United States 91 2 Australia 90 4/5 Canada 80 21 India 48 22/23 Japan 46 31 Philippines 32 36 Malaysia 26 37 Hong Kong 25 Rank Country Score 39/41 Singapore 20 39/41 Thailand 20 43 South Korea 18 44 Taiwan 17 47/48 Indonesia 14
  25. 25. © 2012 by Gregory Zerovnik. All right reserved. Masculinity / Femininity  How roles are distributed between the genders  Women's values differ less among societies than men's values  Men's values from one country to another contain a dimension from very assertive and competitive and maximally different from women's values on the one side, to modest and caring and similar to women's values on the other.  Masculine = assertive / Feminine = modest, caring  In feminine countries women have the same modest, caring values as the men  In masculine countries women are somewhat assertive and competitive, but not as much as the men, so that these countries show a gap between men's values and women's values Source: http://www.geert-hofstede.com/
  26. 26. © 2012 by Gregory Zerovnik. All right reserved. Masculinity / Femininity Source: http://www.geert-hofstede.com/ Rank Country Score 1 Japan 95 11/12 Philippines 64 15 United States 62 16 Australia 61 18/19 Hong Kong 57 20/21 India 56 24 Canada 52 25/26 Malaysia 50 Rank Country Score 28 Singapore 48 44 Thailand 34 41 South Korea 39 32/33 Taiwan 45 30/31 Indonesia 46 People’s Republic of China 51
  27. 27. © 2012 by Gregory Zerovnik. All right reserved. Uncertainty Avoidance  Society's tolerance for uncertainty and ambiguity  The extent to which a culture programs its members to feel either uncomfortable or comfortable in unstructured situations.  Unstructured situations are novel, unknown, surprising, different from usual. Uncertainty avoiding cultures try to minimize the possibility of such situations by strict laws and rules, safety and security measures, ―there can only be one Truth and we have it.‖  People in uncertainty avoiding countries are more emotional and motivated by inner nervous energy.  Uncertainty accepting cultures are more tolerant of opinions different from what they are used to; they try to have as few rules as possible. People within these cultures are calm and contemplative, and not expected by their environment to express emotions Source: http://www.geert-hofstede.com/
  28. 28. © 2012 by Gregory Zerovnik. All right reserved. Uncertainty Avoidance Source: http://www.geert-hofstede.com/ Rank Country Score 7 Japan 92 16/17 South Korea 85 26 Taiwan 69 28 Singapore 48 30 Thailand 64 30/31 Indonesia 46 37 Australia 51 41/42 Canada 48 Rank Country Score 43 United States 46 44 Philippines 44 45 India 40 46 Malaysia 36 49/50 Hong Kong 29 People’s Republic of China 36
  29. 29. © 2012 by Gregory Zerovnik. All right reserved. Long-term Orientation  This fifth dimension was found in a study among students in 23 countries, using a questionnaire designed by Chinese scholars.  Values associated with Long Term Orientation are thrift and perseverance.  Values associated with Short Term Orientation are respect for tradition, fulfilling social obligations, and protecting one's “face.”  Both the positively and the negatively rated values of this dimension are found in the teachings of Confucius, the influential Chinese philosopher who lived around 500 B.C. The dimension also applies to countries without a Confucian heritage. Source: http://www.geert-hofstede.com/
  30. 30. © 2012 by Gregory Zerovnik. All right reserved. Long-term Orientation Source: http://www.geert-hofstede.com/ Rank Country Score 2 Hong Kong 96 3 Taiwan 87 4 Japan 80 5 South Korea 75 7 India 61 8 Thailand 56 9 Singapore 48 Rank Country Score 15 Australia 31 17 United States 29 20 Canada 23 21 Philippines 19 People’s Republic of China = 98 rank = #1
  31. 31. © 2012 by Gregory Zerovnik. All right reserved. National Culture Summary
  32. 32. © 2012 by Gregory Zerovnik. All right reserved. Corporate Culture  Typical corporate culture terms include:  Innovation culture (high technology firms)  Warrior culture (commodity firms)  Cooperative culture (retailers, distributors)  Learning culture (start-ups, education)  Informal culture (high-tech, some services)  Formal culture (finance, consulting)  These are not exclusive and firms may have a dominant culture, as well as one or more subcultures
  33. 33. © 2012 by Gregory Zerovnik. All right reserved. Summary  International Leadership Requirements  Good traits  Effective behavior (action)  Adaptability to changing circumstances  A long-term, transformative orientation  Awareness of national & corporate cultures
  34. 34. © 2012 by Gregory Zerovnik. All right reserved. Thank you! 谢谢 Xièxiè I wish to acknowledge the teachingsof Dr. Peter Drucker and the works of Dr. Geert Hofstede, and Dr. Richard Lewis. Their works and lessons are at the foundation of this presentation.

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