T H U N D E R B I R D

Global Mindset®:

Why is it important for Global Leaders?

Mansour Javidan, Ph.D.Dean of Research and Garvin Distinguished Professor

Global Mindset ® is a registered trademark of Thunderbird School of Global Management. All rights reserved.

Corporate Global Ambitions

Samuel J. Palmisano, the Chair of the

Board, President, and CEO of IBM:

• “Today’s global corporations are shifting their focus from products to production-from what things companies choose to make to how they choose to make them, from what services they offer to how they choose to deliver them. Simply put, the emerging globally integrated enterprise is a company that fashions its strategy, its management, and its operations in pursuit of a new goal: the integration of production and value delivery worldwide. ”

The Challenge to

Global LeadersHow to influence individuals, groups, and organizations inside and outside their own organizationrepresenting diverse cultural/political/institutional systems to help achieve their corporation’s global ambitions.

The Globalized World of Business

Global Leaders need Global Mindset

The ability to influence individuals, groups, organizations, and

systems that are unlike the leader’s.

Global Mindset

Global Mindset Project (GMP) at Thunderbird

• Define Global Mindset ®

• Identify the antecedents and consequences of Global Mindset®

• Develop metrics for measuring Global Mindset®

• Design scientifically based assessment tools for Global Mindset®

• Conduct large scale studies of executives in large multinational corporations

• Assess Thunderbird’s impact on students’ Global Mindset- Pre and post test

• Offer a suite of solutions to enhance the Global Mindset of managers and executives

reviseas needed

reviseas needed

educationeducation management,org studies

management,org studies

language/x-cult

language/x-cult international

relationsinternational

relations

training/HRtraining/HR

Review literatures, formulate research frame

n=8 global scholars

Review literatures, formulate research frame

n=8 global scholars

create/refineresearch questions

create/refineresearch questions

Obj. #1investigate the

nature and relevanceof “globalmindset"

Obj. #1investigate the

nature and relevanceof “globalmindset"

#1sampling plan:

interviews, focusgroups w/int’l scholars

sr. acad.n-30

#1sampling plan:

interviews, focusgroups w/int’l scholars

sr. acad.n-30

#3sampling plan:

expert informantconference

n=44

#3sampling plan:

expert informantconference

n=44

createGlobal Mindset Inventory

draft

createGlobal Mindset Inventory

draft

#6pilot test:

int’l MBA’sn-,207

#6pilot test:

int’l MBA’sn-,207

revise Items to assure

psychometricsoundness

revise Items to assure

psychometricsoundness

#7pilot test #2

int’l managersn/800

#7pilot test #2

int’l managersn/800

The Global Mindset Inventory

The Global Mindset Inventory

analyze data, observations,participant discussions

analyze data, observations,participant discussions

#2sampling plan:

interviews and smallgroup discussionswith international

managers,execs, scholars

n=200

#2sampling plan:

interviews and smallgroup discussionswith international

managers,execs, scholars

n=200

critique internallycritique internally

categorize perceptions/experiences/observations of “global

mindset”+

categorize perceptions/experiences/observations of “global

mindset”+

focused group discussionsw/participants

focused group discussionsw/participants

-Obj. #2validate construct,

revise to state-of-artscholarly

perspective

-Obj. #2validate construct,

revise to state-of-artscholarly

perspective

reviseas needed

reviseas needed

drill int’l leaders experiences/insightsre:invid/org gl mindset successes

drill int’l leaders experiences/insightsre:invid/org gl mindset successes

final ‘reality’ check, including emergentfactors of GI Mindset

final ‘reality’ check, including emergentfactors of GI Mindset

feed back toparticipantsfeed back toparticipants

validate viaexpert judgesvalidate via

expert judges

differentiate anddefine “global mindset”

differentiate anddefine “global mindset”

#5generate items re:

Intel/Psych/Soc capitaln-100 int’l MBA’s

+ psychometricians

#5generate items re:

Intel/Psych/Soc capitaln-100 int’l MBA’s

+ psychometricians

collect additional data,consolidate into

emergent themes

collect additional data,consolidate into

emergent themes

reviseas needed

reviseas needed

#4sampling plan:interviews w/

sr. exec. expertsn=17

#4sampling plan:interviews w/

sr. exec. expertsn=17

identity antecedents, consequences,and applications contingencies

of “global mindset”

identity antecedents, consequences,and applications contingencies

of “global mindset”Obj. #3

validate construct,revise to state-of-art

practitionerperspective

Obj. #3validate construct,

revise to state-of-artpractitionerperspective

• Global Mindset is a set of individual attributes that enable and facilitate global leadership.

The ability to influence individuals, groups, organizations, and systems that are

unlike the leader’s.

Global Mindset

Global Mindset

• “Global mindset to me means that the individual has a global passport, but in their head.”

• “It’s the ability to understand the similarities and differences among cultures and their reasons.”

Global Mindset

• “understanding and respecting other cultures rather than judging them.”

• “The ability to avoid the simplicity of assuming all cultures are the same, and at the same time, not being paralyzed by the complexity of the differences.”

Global Mindset

• “I think it’s a natural curiosity to learn more about other cultures.”

• “Rather than being frustrated and intimidated by the differences, enjoying them and seeking them out because you find them fascinating.”

Survey of 100 Global Companies

How often are cultural implications of business decisions considered in making business plans in your company?

Sometimes or Always 80%

Survey of 100 Global Companies

How important a role do you believe culture plays in the success of your business mission?

Important or Very Important 95%

Global Mindset

• “Being comfortable with being uncomfortable in uncomfortable environments.”

• “It’s like a bug. Once you have it, you can’t get rid of it.”

Gerald Schafer is a Swiss national who has never really lived in Switzerland. He was born in Budapest to a Swiss foreign-service officer and his Hungarian wife. Mr. Schafer grew up in Africa and South America and studied in the United States. He speaks Portuguese (at home with his Brazilian wife), Spanish, French, German, English and Hungarian.

Psychological Capital

Psychological Capital

What is the game?What is

the game?

Individuals who are

capable of perceiving,

analyzing and decoding the

global operating

environment

Individuals who are

capable of perceiving,

analyzing and decoding the

global operating

environment

Intellectual Capital

Intellectual Capital

Individuals who have a

global mindset

Individuals who have a

global mindset

Global Leaders who are

effective in influencing

people from

different socio-

cultural systems

Global Leaders who are

effective in influencing

people from

different socio-

cultural systems

What are the rules?What are the rules?

How do we win?How do we win?

The The Corporation’s Corporation’s ambition to be ambition to be

successful successful in globalin globalmarketsmarkets

The The Corporation’s Corporation’s ambition to be ambition to be

successful successful in globalin globalmarketsmarkets

Beh

avio

ral

Rep

erto

ire

Social CapitalSocial Capital

Global Mindset and Effective Global Leadership

Individuals who possess the behavioral flexibility and discipline to

act appropriately

Individuals who can accurately

identify effective managerial action

in the global operating

environment

Quest for AdventureQuest for Adventure

Self-AssuranceSelf-Assurance

Passion for Diversity

Passion for Diversity

Cosmopolitan Outlook

Cosmopolitan Outlook

Cognitive ComplexityCognitive Complexity

Psychological Psychological CapitalCapital

Global Business Savvy

Global Business Savvy

Intellectual Intellectual CapitalCapital

Interpersonal Impact

Interpersonal Impact

DiplomacyDiplomacy

Intercultural Empathy

Intercultural Empathy

Social Social CapitalCapital

GLOBAL MINDSETGLOBAL MINDSET

Intellectual Capital (IC)Intellectual Capital (IC)

Global BusinessGlobal BusinessSavvySavvy

Global BusinessGlobal BusinessSavvySavvy

CosmopolitanCosmopolitanOutlookOutlook

CosmopolitanCosmopolitanOutlookOutlook Cognitive ComplexityCognitive ComplexityCognitive ComplexityCognitive Complexity

Knowledge of global industry

Knowledge of global industry

Knowledge of global competitive business &marketing strategies

Knowledge of global competitive business &marketing strategies

Knowledge of how to transact business & manage

risk in other countries

Knowledge of how to transact business & manage

risk in other countries

Knowledge of supplieroptions in other parts

of the world

Knowledge of supplieroptions in other parts

of the world

Knowledge of cultures indifferent parts of

the world

Knowledge of cultures indifferent parts of

the world

Knowledge of geography,history and important

persons of several countries

Knowledge of geography,history and important

persons of several countries

Up-to-date knowledge of important world events

Up-to-date knowledge of important world events

Knowledge of economic and political issues, concerns,

hot topics, etc. of majorregions of the world

Knowledge of economic and political issues, concerns,

hot topics, etc. of majorregions of the world

Ability to grasp complexconcepts quickly

Ability to grasp complexconcepts quickly

Strong analytical andproblem solving skills Strong analytical and

problem solving skills

Ability to understand abstract ideas

Ability to understand abstract ideas

Ability to take complexissues & explain the main

points simply &understandably

Ability to take complexissues & explain the main

points simply &understandably

Psychological Capital (PC)Psychological Capital (PC)

Passion for DiversityPassion for DiversityPassion for DiversityPassion for Diversity Quest for AdventureQuest for AdventureQuest for AdventureQuest for Adventure Self-AssuranceSelf-AssuranceSelf-AssuranceSelf-Assurance

Interest in exploringother parts of the world

Interest in exploringother parts of the world

Interest in getting to knowpeople from other parts

of the world

Interest in getting to knowpeople from other parts

of the world

Interest in varietyInterest in variety

Interest in dealing withchallenging situationsInterest in dealing withchallenging situations

Willingness to test one’sabilities

Willingness to test one’sabilities

EnergeticEnergetic

Self-confident Self-confident

Comfortable in uncomfortable situations

Comfortable in uncomfortable situations

Witty in tough situationsWitty in tough situations

Interest in living in another country

Interest in living in another country

Willingness to take risksWillingness to take risks

Interest in dealing withunpredictable situationsInterest in dealing with

unpredictable situations

Social Capital (SC)Social Capital (SC)

Intercultural EmpathyIntercultural EmpathyIntercultural EmpathyIntercultural Empathy Interpersonal ImpactInterpersonal ImpactInterpersonal ImpactInterpersonal Impact DiplomacyDiplomacyDiplomacyDiplomacy

Ability to work well withpeople from other parts

of the world

Ability to work well withpeople from other parts

of the world

Ability to understandnon-verbal expression of

people from other cultures

Ability to understandnon-verbal expression of

people from other cultures

Ability to engage peoplefrom other parts of theworld to work together

Ability to engage peoplefrom other parts of theworld to work together

Experience in negotiatingcontracts in other culturesExperience in negotiatingcontracts in other cultures

Reputation as a leaderReputation as a leader

Ease of starting aconversation with a stranger

Ease of starting aconversation with a stranger

Ability to integrate diverseperspectives

Ability to integrate diverseperspectives

Ability to listen to whatothers have to say

Ability to listen to whatothers have to say

Willingness to collaborate

Willingness to collaborate

Ability to emotionallyconnect to people from

other cultures

Ability to emotionallyconnect to people from

other cultures

Strong networks withpeople from other culturesand with influential people

Strong networks withpeople from other culturesand with influential people

CredibilityCredibility

Thunderbird Global Mindset Inventory (TGMI)

• A scientific instrument with strong psychometric properties

• 91 items• Internet based• Over 5000 individuals have completed

the survey in many parts of the world• Available in self-assessment and 360

version

Companies Represented in the Global Mindset Surveys

• Amway• Baker Hughes• Delphi• Dow Agro Sciences, LLC• Dow Chemical Company• DTCC• Eaton Corporation• EDS Corporation• EMC• Fluor Corporation• Henkel• Hydro• Intel China• Johnson & Johnson• Legrand• LG Electronics

• Lincoln Electronic Holdings, Inc.• McDonald’s Corporation• Medtronic• Raytheon• Rich Products Corporation• SK Academy• Smith International• Solar Turbines, Inc.• State Farm Insurance Company• Swanson• The Standard Bank• Thunderbird School of Global Management (Faculty, Students,

Alumni & Staff)• Vitro• Wal-Mart

Overall Global Mindset Profile forThunderbird Alumni vs. Students

28