NTU Leadership Conference, Transformational Strategies for Succeeding in a Volatile Marketplace, Singapore, October 2011
CQ: FROM CLASSROOMCQ: FROM CLASSROOMTO BOARD ROOMTO BOARD ROOMGuido GianassoGuido GianassoVP, Human CapitalVP, Human Capital
2Air Transport is the most global industry in the world.Air Transport is the most global industry in the world.Its main characteristics: Only the unpredictable is predictable Low Profitability Spectacular growth in Asia
3 But until 2002 IATA was the reflection of the industry:the secretariat of international aviation conferencesrun by government owned entities
4IATA in 2001IATA in 2001Case for changeCase for change Liberalization and economic deregulationLiberalization and economic deregulation Low cost carriersLow cost carriers …………..
7IATA is one of the most cultural diverse andIATA is one of the most cultural diverse andcomplex organizationscomplex organizations…… 120 nationalities in 70 offices Very strong matrix, project-based and networkbased elements
8IATA challenges to lead the industry in the 21IATA challenges to lead the industry in the 21ststcenturycenturyand successfully manage globalization, competitionand successfully manage globalization, competitionand growth in Asia and Africa:and growth in Asia and Africa: Move from a “Ethnocentric” to a “Geocentric” cultureto run growing operations around the world Bring diversity to the top of the organization Find an alternative to the old “Expatriate-Colonial” or“Cultural Translator” approach with regard to operationsin Asia, Africa and the Middle East
9GEOCENTRISM*: A WorldGEOCENTRISM*: A World--Oriented ApproachOriented Approach The best men regardless of nationality are appointed tosolve the company’s problems anywhere in the world Collaborative effort between subsidiaries andheadquarters to establish universal standards andpermissible local variations The Firm’s subsidiaries are neither satellites norindependent city states, but parts of a whole whose focusis on worldwide objectives as well as local objectives*H.V. Perlmutter (1969), The Tortuous Evolution of the Multinational Corporation
13How to Move the Organization Forward ?How to Move the Organization Forward ?1. Creating the sense of urgencysense of urgency within the TopManagement Team2. Articulating the visionvision, strategystrategy and ensuringensuringbuybuy--inin3.3. AligningAligning HR processes and systems4. Building a winning coalitionwinning coalition
14Creating the sense of urgency inCreating the sense of urgency inthe Top Management Team..the Top Management Team..
Power Distance vs. IndividualismPower Distance vs. Individualism515253545556575859510 30 50 70 90 110Small LargePower Distance (PDI)CollectivistIndividualistIndividualism(IDV)• Guatemala• Costa Rica • Pakistan• Ecuador• Venezuela• Indonesia•Singapore • China•Thailand• Hong Kong• Romania• Mexico • Philippines• Russia• Arabs• Turkey• Iran• Japan• India• Switzerland FR• France• Belgium FR• Canada Quebec• Israel• Finland• Germany• Norway• Sweden• Denmark• New ZealandUnited States • UK• BrazilAustralia
Power Distance vs.Power Distance vs. IndividualismIndividualism515253545556575859510 30 50 70 90 110Small LargePower Distance (PDI)CollectivistIndividualistIndividualism(IDV)67% 62%41%$29% 34% 31%3% 3%27%
17Layers of Managerial values for Indian senior executivesLayers of Managerial values for Indian senior executivesSituational Values:Situational Values:Role dependant values contingent uponsituational elements of macro-environmentalpolicies and corporate cultureLAYERLAYERTHREETHREEIndividual Managerial Values:Individual Managerial Values:Work values ethical values and other suchvalues anchored to the core tradition but alsoin the process of transitionLAYERLAYERTWOTWOCore Traditional Values:Core Traditional Values:Deeply held robust and widely shared valuesLAYERLAYERONEONEMARKETMARKETCULTURECULTUREECONOMICECONOMICREFORMREFORMS.R. Chatterjee; C.A.L. Pearson, Indian Managers in Transition: Orientations, Work Goals, ValuesIndian Managers in Transition: Orientations, Work Goals, Values andandEthicsEthics, in Management International Review, 40, 2000
18Articulating the vision, strategy andArticulating the vision, strategy andensuring buyensuring buy--in..in..
19Articulating the StrategyArticulating the Strategy Bring diversity into the Senior Management Team Change the culture by introducing CQ among theorganizational core values and align HR systems andprocesses Develop a new generation of leaders able to operatesuccessfully across cultural and geographical boundaries
20Cultural Intelligence (CQ)Cultural Intelligence (CQ) The capability to work effectively in culturallydiverse environments
21A partnership for research andA partnership for research andLeadership DevelopmentLeadership Development
22CQ and Performance in IATACQ and Performance in IATA8272 73677265 676040455055606570758085CQ Drive CQ Knowledge CQ Strategy CQ ActionA PlayerB Player
IATAIATAStrategyStrategyIATA ValuesCore CompetenciesPeopleSpeedInnovationChangeIntegrityTeamworkwith CulturalIntelligenceResultsLeadership1. ManpowerPlanning /OrganizationDesign2. Recruitment3. PerformanceAssessment4. Rewards5. DevelopmentAligning HC Policies and SystemsAligning HC Policies and Systemsto IATA Strategyto IATA Strategy
24Building the winning coalitionBuilding the winning coalition
25IINTERCULTURALNTERCULTURALLLEADERSHIPEADERSHIPEENGAGEMENTNGAGEMENTAANDNDDDEVELOPMENTEVELOPMENT Drive change in the industry and the organization Operate across geographical and cultural boundaries Bring added value to the business by working together onreal projectsDeveloping a new generation of IATA leaders able to:
Project TeamOpeningWorkshop11-22 OctProject TeamClosing Workshop10-19 Jan 2011I-LEAD FinalWorkshop24-25 Jan 2011I-LEAD LaunchWorkshop20-23 Sept20 Change Agents•10 high power-distance/ collectivisticcultures•10 low power-distance /individualisticculturesIn Singapore for 4daysPairs of ChangeAgents run local2-day workshopsand launchprojectsLocal teams meet for1-day workshop• Decision makingand next steps• Conduct teamfeedbackAll Change Agents plusone team member meetin Montreux for 1 ½days,• Report results• Share best practices• Agree to next steps indriving change11 - 13WEEKSLocal TeamsCompleteProjectWorkII--LEAD 2010LEAD 2010--2011 Process Overview2011 Process Overview