Book Title
International Business: The Challenge of Global Competition 13th Edition

978-0077606121 Chapter 11 Lecture

April 7, 2019
Global Leadership Issues and Practices
Learning Objectives
LO11-1 Discuss the importance of creating a company “global mindset.”
LO11-2 Describe what distinguishes the practice of global leadership from its domestic
LO11-3 Identify the competencies required for effective global leadership.
LO11-4 Discuss approaches for selecting and developing effective global leaders.
LO11-5 Explain what skills a manager needs in order to effectively lead global teams.
LO11-6 Identify some of the challenges of leading global change.
International business statistics, data, and facts about countries, regions, governments, and companies can
change rapidly and dramatically. We recommend that you update this information regularly to present
your students with timely data reflecting current global events.
As an adopter of this text, McGraw-Hill Irwin offers you a complementary online resource each month,
the International Business Newsletter. The IB Newsletter gives you an array of timely and relevant
articles, videos, country profiles, teaching suggestions, and data resources to add breadth, depth, and
richness to the ever-changing topic of international business.
iGlobe is also a way to keep your courses current. In partnership with PBS, iGlobe is a
free video service for McGraw-Hill adopters that allows you to download breaking news
videos onto your desktop to show in class or online. Updated monthly, these streaming
videos are complete with teaching notes and discussion questions. Key concepts for each
video are identified to save you time! See www.MHHE.com and contact your sales
representative for access codes.
1 Overview
Rapid economic growth in the emerging markets, particularly the so-called BRIC nations
(Brazil, Russia, India and China), is creating large new markets for consumer and industrial
goods. The revolution in communications and computer technology, including the Internet, social
media, smart phones, and other developments, is enabling diverse and geographically dispersed
groups of employees to collaborate in their work and to learn from and with each other.
Developments in shipping and logistics are heightening pressure on companies to reconfigure
their value chains in order to maintain competitiveness. Expanded geographic scope of
operations is exposing companies to
different regulatory environments, a more diverse set of suppliers and competitors, and exposure
to a variety of unfamiliar risks.
International companies require a new type of leader in order to compete successfully in
this complex and dynamic global environment. These global leaders need to not only be
proficient in terms of their business acumen, but to also evidence an array of additional skills.
They must be able to envision the nature and direction of change that is occurring within and
across markets of the world and the implications of these changes for the company’s strategy.
They must evidence cultural understanding and adaptability, rather than being constrained by
experiences only within their home country and culture. They must be able to understand, work
with, and inspire individuals from a range of nations and cultures to create new technologies,
businesses, and organizations.
Suggestions and Comments
1. Often students and others assume that global leadership is the same as regular leadership, with
some great travel added. The important message of this chapter is that, due to the added
complexities of the international context, global leadership is exceedingly complex.
2. Guest speakers who can explain how the complex environment increases the challenges of
global leadership would add to the student appreciation of this topic. Perhaps you have access
to UN or other NGO administrators, international division officers of major companies, etc.
2 Lecture Outline
I. The Global Mindset
A. intellectual intelligence, including business acumen
B. global emotional intelligence, including self-awareness, cross-cultural understanding,
cultural adjustment, and cross-cultural effectiveness
II. What is Global Leadership and why is it important?
A. Differentiation of management and leadership (Warren Bennis)
B. How Global Leadership Differs from Domestic Leadership
1. Four dimensions of complexity: multiplicity, ambiguity, interdependence and
2. Globalization increases both internal and external complexities
3. Global leadership is the same but different in kind from domestic leadership
III. What competencies are required for effective global leadership?
A. Selecting and Developing Effective Global Leaders
1. Same skills as domestic leader needed plus additional global skills
2. more significant impact of emotional stability, ability to learn, and
decision-making and negotiating skills for global leaders than for domestic
3. Brake's Global Leadership Triad: business acumen, relationship management
skills, and personal effectiveness skills
4. Pyramid Model of global leadership skills: 5-level progression of skills
B. Assessing global leadership competencies
1. Many assessment instruments have been developed.
2. Choice of instrument depends on context
C. Models for developing global leaders
1. The GLED model: emphasis on process by which expertise developed
2. The “right stuff” model: match between leader's skills and abilities and
the firm's needs.
D. Tools and Techniques for developing global leadership skills
1. Non-linear process comprised of diverse experiences
2. Skills necessary to deal effectively with the complex, ambiguous, high- level
IV. Leading Global Teams
A. Leading global teams is a complex activity
1. High level of diversity
2. Geographic dispersion
3. Virtual environment
B. Central tasks of team leadership
1. Establish the team
2. Coach the team members
3. Set team norms
C. Context for global teams
1. Increased multiplicity
2. Increased ambiguity
3. Increased interdependence
D. Culture and global team leadership
1. How teams are managed
2. Communication norms
3. Conflict resolution norms
E. Virtual and geographically dispersed teams
F. Performance management in global teams
1. Difficult due to cultural issues and virtuality
2. Reward individual performance, team performance or combination,
depending on team membership and task
V. Leading Global Change
A. Change models
1. Kurt Lewin model: unfreeze, change, refreeze
2. Kotter's eight steps
3. Change not an orderly process
B. Change and culture
1. Attitude towards change influenced by culture
2. Driving change requires ability to communicate across cultural borders
Global Debate : Are women appropriate for global leadership positions?
Research suggests that women have skills more appropriate to global leadership than do men.
Yet there are significant cultural values that impede women's participation in global leadership.
One Consulting Company's Practical Take on Global Leadership
Aperian Global, a consulting company whose goal is to open the world for its clients (aperire in
Latin is to open), has researched the issues of w how the global context changes what leadership
is and what competencies are required for global leadership.