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The ‘Global Mindset’ of managers

Article  in  Organizational Dynamics · April 2013


DOI: 10.1016/j.orgdyn.2013.03.008

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Organizational Dynamics (2013) 42, 145—155

Available online at www.sciencedirect.com

journal homepage: www.elsevier.com/locate/orgdyn

The ‘Global Mindset’ of managers:


What it is, why it matters, and how to develop it
Mansour Javidan a,*, David Bowen b,1

a
Najafi Global Mindset Institute, Thunderbird School of Global Management, 1 Global Place, Glendale, AZ 85306, United States
b
G. Robert & Katherine Herberger Chair in Global Management, Thunderbird School of Global Management, 1 Global Place,
Glendale, AZ 85306, United States

‘Global Mindset’’ is an individual’s capability to influence (10 times more than 1990). Furthermore, in a recent survey
others unlike themselves. This definition of what it is of almost 500 senior executives at 100 corporations, the
emerged from our lengthy and ongoing research program, Economist Intelligence Unit (EIU) reported that 75% of the
which we will describe. We present two approaches for how corporations were planning to compete in foreign markets.
to develop Global Mindset. One is to ‘‘find’’ it in individuals Although this overall globalization is obvious, less appar-
with attributes associated with it, e.g. certain demographics ent are the nuances in the differing forms of that globaliza-
and educational backgrounds, as well as in companies and tion. Not every sector, business or industry is globalizing, nor
industries with attributes likely to foster it, e.g. differing are they globalizing at the same pace. The nature of globa-
sizes and sectors. Another approach is to ‘‘grow’’ it, e.g. lization among them is also different. Some companies, like
leadership development programs and coaching. We will Wal-Mart Stores and Gap, have huge global supply chains but
further elaborate what and how, but we begin by under- have much more limited global markets. Others, like Johnson
scoring why the Global Mindset of managers matters. and Johnson and HSBC Bank, have extensive global supply
chains and also sell their products in many countries.
WHY IT MATTERS: GLOBALIZING It is also possible that different business units in the same
company may be following different paths to globalization.
CORPORATIONS VERSUS GLOBALIZING
This is often driven by the nature of their business. Some
PEOPLE business units may be domestically oriented, while others
may be quite globalized. Owens Corning is an example of this.
Much is known about how to globalize corporations via The company has two major business units: building materi-
technology, logistics management and the like; much less als and composites. The building materials business is almost
is rigorously known in either research or practice about how totally domestically oriented, focused on the U.S. market.
to globalize people for their global roles. Between 1990 and The composites business, however, is quite global, producing
2003, the number of multinational corporations throughout and selling the products in many countries. So when discuss-
the world increased from 3000 to 63,000. Today, in 2012, ing globalization, we need to examine three issues: the
there are more than 100,000 MNC’s (multinational compa- extent, pace, and nature of globalization.
nies) and 900,000 affiliates, with assets valued at $57 trillion
Assessing Your Own Globalizing Situation

* Corresponding author. Tel.: +1 602 978 7013.


In our work with many managers to help them better under-
E-mail addresses: mansour.javidan@thunderbird.edu stand how globalized their company or business unit is, i.e.
(M. Javidan), david.bowen@thunderbird.edu (D. Bowen). the extent, pace, and nature of its globalization, we use a
1
Tel.: +1 602 978 7037. series of simple reflective questions. We have included six of

0090-2616/$ — see front matter # 2013 Elsevier Inc. All rights reserved.
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146 M. Javidan, D. Bowen

Table 1 How Globalized (or Globalizing) is a Company? Wal-Mart, noted that ‘‘the thing that is probably the most
challenging for a company like ours is continuing to grow the
1. Over the next five years, the corporation’s
talent for a company that’s growing around the world. . . We
opportunities, in terms of markets and supplies,
will add thousands of customers. We can add sales to our top
are mostly outside of its home country
line. But it will require leadership.’’
Yes No
What, then, are the global leadership competencies man-
2. Over the next five years, the firm will be hiring more agers in middle and higher ranks must possess in order to
people outside its home country leverage global opportunities? And in what way are they
Yes No different from general leadership competencies? In our view,
the core element of any form of leadership is the ability to
3. Over the next five years, managers at the firm will
influence others to get something done. Leadership is a
increasingly need to work with people from other parts
process of influencing others. What distinguishes global lea-
of the world
dership is that the target of the influence, individuals, groups
Yes No
or organizations, come from a different part of the world
4. Over the next five years, managers at the firm will from the leader. Leaders in global roles need to influence
increasingly need to work with direct reports who are others who are different from them. That is why in a recent
located in different parts of the world survey of CEOs, they identified the two most important
Yes No leadership competencies in their companies to be: mobilizing
5. The top management and middle management in the teams and working across cultures.
company are not very experienced in leveraging global Our notion of global leadership is not limited to expatri-
opportunities ates. While expats are clearly performing global roles, they
Yes No are not the only ones. In our view, a global role is not just
about geographic distance. A manager may be based in his
6. A key to the company’s competitive advantage resides hometown, but may be interacting on a regular basis with
in its capability to manage cross cultural complexity in clients and supply chain partners in different parts of the
its value chain of suppliers, managers, employees, world, and some of his colleagues and direct reports may be
distributors, and customers better than its based in other countries.
competitors Working with stakeholders located in different parts of the
Yes No world can be quite challenging. This is because they repre-
sent different cultural, political, and institutional back-
grounds, which lead them to see the world differently,
interpret it differently, and react to it differently. They have
these questions in Table 1. The first question relates to the
different worldviews. Additionally, the political and institu-
globalization of the firm’s markets and supplies. Questions
tional frameworks where each of these stakeholders works
2—5 refer to the globalization and geographic dispersion of
shape the broader macro environment where the business is
the company’s talent pool, while the last question relates to
embedded. For example, the relationship between the gov-
the strategic implications of globalized business.
ernment and business sectors looks quite different in differ-
The higher an organization’s score on this type of assess-
ent regions. Case in point, Facebook, along with other social
ment, the more true will be the observation of Sam Palmi-
media, has become en vogue in business to create and
sano, the former chief executive officer (CEO) of IBM, that a
maintain customer and employee engagement. But it is
new source of competitive advantage for global firms is their
not available in China, because it does not meet the Chinese
ability, in the face of cross cultural complexity, to integrate
government’s regulatory requirements. There are Chinese
their global operations more effectively, faster, and at lower
equivalents of Facebook, and they have very large censorship
cost than their competitors. This is a particularly important
departments to ensure the content on their sites meets
issue for the Big 4 accounting firms, which need to globalize
government requirements.
their operations to be able to serve a growing number of
A country’s cultural values and practices help shape how
global clients. In fact, Ernst andYoung has made globalization
people in the society interact with each other and their
such a strong priority that it promises to provide more
views toward business and leadership. Our work in the
seamless global tax and accounting services than its compe-
GLOBE (Global Leadership and Organizational Behavior
titors. That is an ambitious promise, but one that can gen-
Effectiveness) research program with managers in 62 coun-
erate a major competitive advantage for them. This kind of
tries has shown that countries do indeed have diverse ways of
promise, however, requires attention to developing a greater
doing things. They also have diverse values and ideals. The
number of managers who can work effectively in global roles.
GLOBE research has also shown that managers have differing
expectations from their supervisors and leaders. While
Globalizing Managers for the Challenges of Global American managers expect their leaders to be performance
Roles oriented, those in the Arab world expect their leaders to be
quite paternalistic toward their employees. A highly perfor-
While there is a growing need for global leaders, a recent mance oriented American executive might find his style
survey of senior HR (human resource) executives revealed viewed negatively by his direct reports in the Middle East
that a shortage of global executive talent was the primary or in many parts of Asia. He may find that to build trusting
concern for their firms’ global expansion plans. That is why in relationships with his colleagues, he needs to spend a large
a Bloomberg Businessweek interview, Mike Duke, the CEO of amount of his personal time after work socializing with
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The ‘Global Mindset’ of managers 147

them, for example drinking alcohol in Korea and tea or another 26 Thunderbird professors who are all experts in
coffee in Saudi Arabia. various aspects of global business. We then interviewed 217
Working through complex levels of diversity of thought senior global executives in 23 cities in U.S., Europe, and Asia.
and action is not a capability that is developed naturally in We asked many open-ended questions about successful and
most societies. We saw evidence of this when on November unsuccessful cases of global leadership. We also asked them
10, 2011, some 900 executives from over 45 countries attend- to define the concept of Global Mindset, discuss its rele-
ing a conference were asked, ‘‘How many of you can recall vance, and share their expertise on whether it can be devel-
from elementary school or high school, reading in textbooks oped. The answers were revealing, e.g. ‘‘Global Mindset to
or hearing from teachers about how to work with others me means that the individual has a global passport, but in his
different from yourself?’’ Approximately 15 hands went up in head;’’ ‘‘I think it is a natural curiosity to learn more about
the audience. In sum, while many corporations are in search other cultures;’’ ‘‘being comfortable with being uncomfor-
of global opportunities, their managers often feel unpre- table in uncomfortable environments’. . . and ‘‘Marco Polo
pared for the new success requirements in their global roles. had a Global Mindset!’’
We also hosted an invitation-only conference of more than
WHAT IT IS: THE GLOBAL MINDSET PROJECT 40 distinguished academic experts in global management
from around the world to brainstorm and debate the nature
AT THUNDERBIRD
of global leadership and the meaning of Global Mindset. Our
series of interviews and our discussions with distinguished
The field of global leadership is relatively new. The large scholars resulted in our definition of Global Mindset:
majority of the extant scholarly work has been completed
over the past two decades, and it has been mostly anecdotal The set of individual qualities and attributes that help a
and case based. Relatively few large-scale, rigorous studies manager influence individuals, groups and organizations
exist. The global leadership literature, even now but parti- who are from other parts of the world.
cularly when this research project started in 2004, seemed to
Managers who have a high level of these attributes find it
mostly focus on the attributes and competencies of success-
easier to work effectively with dissimilar others. They are
ful global executives and includes over 100 key qualities like
also more likely to succeed in such roles. On the other hand,
energy, ability to build global teams, global change agent
those managers who have a low level of these attributes find
skills, envisioning, environmental sense making, empower-
global roles stressful and frustrating and are less likely to
ing, cognitive complexity, business acumen, personal effec-
succeed in global roles. In short, Global Mindset is the cap-
tiveness, relationship management and many others.
ability to influence others unlike oneself and is critical to
Given the ongoing challenge and complexity of working
global leadership effectiveness.
across borders, as well as the paucity of rigorous large-scale
empirical studies on global leadership rigorously defined, a
group of eight professors at Thunderbird embarked on a Defining and Measuring Global Mindset
research project to identify a core, limited number of indi-
vidual qualities and attributes that would help a manager The next step in our research was to empirically define and
accomplish a key requirement of global leadership — working measure the construct of Global Mindset. We worked with the
effectively with others who are unlike them. We reviewed Dunnette Group, one of the world’s most highly regarded
the relevant literature and conducted interviews with instrument design firms. The research team first drafted

Figure 1 The Structure of Global Mindset.


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148 M. Javidan, D. Bowen

survey items to sample the domains confirmed in the litera- information to use in identifying and developing new pro-
ture and in our interviews. The process of refining the survey ducts and new ways of marketing them. In short, they need
instrument included a series of pilot tests with over 1000 much higher levels of Global Intellectual Capital, which
global managers in large global corporations. An initial pool consists of three major dimensions:
of over 700 items was reduced, in a series of statistical Global business savvy: Knowledge of the way business is
exploratory and confirmatory factor analyses, to 76 final conducted in different parts of the world:
items (50 Global Mindset questions and 26 demographics).
This step yielded the empirically verified construct of  Knowledge of global industry
Global Mindset displayed in Fig. 1. It also resulted in the  Knowledge of global competitive business and marketing
creation of the Global Mindset Inventory (GMI), which mea- strategies
sures a manager’s profile of Global Mindset in terms of the  Knowledge of how to transact business and manage risk in
three capitals (Global Intellectual, Global Psychological, and other countries
Global Social) and nine associated dimensions, as both a self-  Knowledge of supplier options in other parts of the world
assessment and 360-degree tool. The 360 tool allows assess-
ment of whether an individual’s self-assessment is shared, or Cosmopolitan outlook: Understanding that things can be
not, by others with whom s/he works. Reliabilities for the done very differently in different parts of the world.
scales measuring the nine dimensions and the categories in
which they belong were found to be very strong. The nine  Knowledge of cultures in different parts of the world
scales are distinct but correlated factors. Additionally, cri-  Knowledge of geography, history, and important persons of
terion-related validity tests were conducted in a Fortune 10 several countries
company, to determine the ability of the GMI to predict  Knowledge of economic and political issues, concerns, hot
manager performance, as assessed by non-self-report data. topics, etc. of major regions of the world
The results were significant in verifying the criterion-related  Up-to-date knowledge of important world events
validity of the GMI. (The GMI is described in detail in a
technical report available on our website, www.globalmind- Cognitive complexity: The manager’s ability to digest,
set.com.) At this time, over 17,000 individuals from more interpret, and leverage the large amount of information
than 200 organizations around the world have completed the embedded in global business savvy and cosmopolitan out-
survey. We are in the midst of analyzing the data to help look.
identify the correlates of Global Mindset; some of these
results are presented later in the paper.  Ability to grasp complex concepts quickly
 Strong analytical and problem solving skills
Global Mindset as Three Core Capitals  Ability to understand abstract ideas
 Ability to take complex issues and explain the main points
Fig. 1 developed from our research, shows the three core simply and understandably
‘‘capitals,’’ and nine underlying building blocks of a Global
Mindset that enable managers to influence others unlike Global Intellectual Capital is a critical part of Global
themselves in achieving their organizations’ global ambi- Mindset and a major requirement for success in global roles
tions. Here is a closer look at each, and why they matter. because of the great diversity in how things are done by
Global Intellectual Capital: The cognitive side of Global corporations in different societies. The starting point in
Mindset. It refers to how much and what the manager knows successfully dealing with such diversity of thought and action
about the global business in her industry and its broader is knowing about it and understanding its underlying reasons.
macro environment, and how easy it is for her to analyze, Thomas Friedman, in his recent bestselling book, argued that
digest, and interpret this information. The CEO of a company the world is flat in the sense that it is interconnected in
we work with has developed a visual way to communicate this unprecedented ways due to advances in information tech-
with his senior management team. He presents a slide show- nology, transportation and distribution. But he failed to
ing the flags of the six countries that the company has done discuss the complexities that arise out of such interconnec-
successful business in during the past three decades, includ- tivity. As Douglas Ivester, former CEO of Coca-Cola summa-
ing the U.S., Canada, and South Korea. While these countries rized, ‘‘As economic boundaries come down, cross cultural
have generated much business for the company in the past, barriers go up, presenting new challenges and opportunities
their future growth is expected to be around 3% annually, in business.’’
below what the CEO and the board is aspiring to. The slide Our work in the GLOBE project has identified a number of
also shows the flags of the seven countries that have been substantial cross cultural differences that show, for example,
identified to represent the future growth for the company, American managers expect their supervisors to be much more
including Brazil, India, and Saudi Arabia. The CEO then enthusiastic than do French managers. A typical American
explains that each one of the seven flags represents a dif- manager may find it difficult to make the necessary adjust-
ferent cultural system, a different political system, and a ments in working with his French team. Also, the United
different regulatory system. Furthermore, the consumers in States’ culture is much less autocratic and top down than
these countries have different interests and expectations. that of Spain. So a typical U.S. manager working with her
The CEO concludes that for this company to succeed, its Spanish colleagues and direct reports may find that her
managers and executives need to learn about the consumers empowering and consultative decision-making style is viewed
in several new and different countries and need to put that with confusion or disbelief by her Spanish team. Or a typical
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The ‘Global Mindset’ of managers 149

Table 2 A few Items from a Jet Airways Ad for hiring Flight learning about and dealing with people from other countries
Attendants. and regions.
‘‘Be Part of the Best Hospitality Offered in the Skies’’
 Interest in exploring other parts of the world
We are hiring cabin Crew with the following attributes:
 Interest in getting to know people from other parts of the
Age: Between 18 and 27
world
Height: Male: min. 170 cm. Female, min. 157 cm
 Interest in living in another country
Weight: in proportion to height
Marital status: Unmarried  Interest in variety
Physical features: unblemished complexion with pleasing
personality Quest for adventure: Engaging in a global role repre-
sents new and unfamiliar things. Quest for adventure
reflects the manager’s willingness to deal with risks of
unfamiliarity.
Spanish executive may find his leadership style to be rebuffed
by his American team as too autocratic and domineering to be
 Interest in dealing with challenging situations
acceptable.
These cross border challenges are why, in a recent survey  Willingness to take risk
of global executives, ‘‘decision-making in complex environ-  Willingness to test one’s abilities
ments and ability to read cultural nuances and to adapt  Interest in dealing with unpredictable situations
leadership style accordingly’’ was reported to be the key
to successful global leadership. But cross-cultural intelli- Self-assurance: Having the energy and confidence to take
gence is not enough. While the differences in national cul- on global roles and responsibilities.
tures, e.g. performance orientation and power distance, are
indeed critical, the global leader’s targets of influence may  Energetic
come from institutional systems, legal frameworks, and  Self-confident
social structures that are different from those in the global  Comfortable in uncomfortable situations
leader’s home context. Table 2 summarizes the information  Witty in tough situations
in a recent magazine advertisement by Jet Airways, an Indian
airline that is looking to hire flight attendants. It shows that The most rigorous test of an executive’s Global Psycho-
the company specifies age, height, weight, and marital status logical Capital is in expat situations. Most companies assign
as requirements for prospective candidates, a practice that is their expat posts based almost exclusively on technical
illegal or unacceptable in countries like the U.S. and Canada. merit. They choose a manager mostly based on whether
A global leader will likely face such diverse regulatory frame- he has the required functional capability to perform the
works in many aspects of her decision-making and needs to task in another country without paying much attention to
manage this diversity and complexity in such a way that his Global Psychological Capital. This is a risky approach. An
balances her corporation’s values and principles, her home expatriate executive who is low in Global Psychological
country’s regulations, and the host country’s norms. In other Capital may have a successful track record at home, but
words, a major task for any manager in a global role is to find may find his new global role full of frustration and confu-
ways of balancing conflicting forces, expectations, and sion. His lack of curiosity and interest in the home culture
requirements in different parts of the world. Jet Airways’ and people impedes his ability to build trust with his direct
ad is in compliance with the rules and regulations in India. But reports and other colleagues. He will find himself gravitat-
an American or Canadian carrier hiring flight attendants in ing toward other expats and clubs and restaurants in his city
India needs to take other requirements, like their home that cater to expats to find the relief of a familiar envi-
country rules and their corporate values and principles, into ronment. He will likely spend more of his time with other
consideration before adopting Indian regulations. So just expats who are also suffering, avoiding those who enjoy
being aware of other countries’ regulatory frameworks is their experiences, further aggravating his isolation. In sum,
not sufficient. The global leader needs to make judgment the lack of Global Psychological Capital and emotional
calls as to how to deal with them. resilience necessary to make sense of and enjoy cultural
Global Psychological Capital: The Affective Aspect of and national differences will sap the energy and confidence
Global Mindset. It helps a manager leverage her Global to engage in a global environment and will lead to further
Intellectual Capital. A manager may be knowledgeable isolation resulting in broken relationships, lack of trust, and
about other cultures and may be relatively up to date about likely failure.
world events. But without a strong Global Psychological Global Social Capital: The Behavioral Aspect of Global
Capital, she may be uninterested in working with people Mindset. It reflects the individual’s ability to act in a way that
from other parts of the world and may find global roles would help build trusting relationships with people from
stressful and frustrating. Global Psychological Capital refers other parts of the world, and also consists of three building
to the manager’s emotional energy and her willingness to blocks:
engage in a global environment. It reflects a positive and Intercultural empathy: The ability to connect, commu-
constructive attitude toward diversity of thought and action nicate, and collaborate with people from other countries
and consists of:
Passion for diversity: Curiosity about people in different  Ability to work well with people from other parts of the
parts of the world and how they do things differently. Joy in world
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150 M. Javidan, D. Bowen

 Ability to understand nonverbal expressions of people in ways that are likely to build trust and help achieve her
from other cultures objectives. Finally, it is worth mentioning that these three
 Ability to emotionally connect to people from other cul- Capitals of Global Mindset, which we offer as key to effective
tures global leadership, are broader in scope than the related
 Ability to engage people from other parts of the world to construct of cross cultural intelligence and cross cultural
work together leadership. Global Mindset includes competencies such as
business savvy, for example, whereas cross cultural intelli-
Interpersonal impact: The ability to negotiate across gence focuses exclusively on cultural differences.
borders and to build personal and professional networks
of influence REVISITING WHY IT MATTERS: LINKING
GLOBAL MINDSET TO PERFORMANCE
 Experience in negotiating contracts in other cultures
 Strong networks with people from other cultures and with
The extant literature on Global Mindset and related topics
influential people
shows that it leads to higher performance for individuals and
 Reputation as a leader
firms. Some authors have found that it is a key parameter of
 Credibility
international success and superior long terms performance,
while others have shown that it leads to more expansive
Diplomacy: The ability to make a positive impression on global strategies and higher levels of employee commitment.
people from other parts of the world by acting in such a way We conducted a study with over 300 managers at a large
that builds a lasting impression multibillion-dollar Fortune 10 corporation. The participants
had an average age of 45. The company uses a 360-degree
 Ease of starting a conversation with a stranger feedback methodology as part of its performance manage-
 Ability to integrate diverse perspectives ment system, with data provided for individual managers by
 Ability to listen to what others have to say supervisors, peers, and direct reports. Hence, this organiza-
 Willingness to collaborate tion had archival performance-related data on managers who
had completed the Global Mindset Inventory. The company
Global Social Capital includes the trust-building and net- measures performance in terms of Thought Leadership
working behaviors that allow managers to knit together their (which consisted of measures of judgment, strategic think-
increasingly cross cultural, complex, global network of rela- ing, financial and analytical skills, and broad global perspec-
tionships. To again borrow from Sam Palmisano: tive), Results Leadership (including drive for results, ability
to lead courageously, customer focus, and execution), People
Today’s global corporations are shifting their focus from
Leadership (including the ability to influence and motivate,
products to production — from what things companies
foster open communication, build relationships, and build
choose to make to how they choose to make them, from
talent), and Personal Leadership (including the ability to earn
what services they offer to how they choose to deliver
trust, adapt, and learn). For the purposes of our study, we
them. Simply put, the emerging globally integrated en-
were particularly interested in the correlation between indi-
terprise is a company that fashions its strategy, its man-
viduals’ self-assessed Global Mindset scores and aggregate
agement, and its operations in pursuit of a new goal: the
performance scores (i.e. average scores for the four con-
integration of production and value delivery worldwide.
structs listed above), as well as correlations between Global
State borders define less and less the boundaries of cor-
Mindset and People Leadership, and Global Mindset and
porate thinking or practice.
Personal Leadership. We found all correlations to be positive,
A high stock of Global Social Capital, together with Global significant, and strong, leading to the conclusion that having
Intellectual and Global Psychological Capitals, equips com- a high Global Mindset is a predictor of how the corporation
panies to pursue a new source of sustainable competitive evaluates a manager’s performance. Managers who have a
advantage — superiority in managing the cross border com- higher profile of Global Mindset are regarded by their firms as
plexity of their global supply chain. Former President Bill more effective managers in general. They are also viewed as
Clinton is the epitome of someone with a high level of Global more effective in influencing and motivating others and
Social Capital. He continues to be well known and well building relationships. Furthermore, they are believed to
received in many parts of the world. Since leaving office, be better able to build trust and show a more open and
he has built and deployed an impressive and unique network adaptive approach.
of influential corporate executives, NGO (non-governmental
organization) officers, and senior government officials all HOW TO DEVELOP IT: FINDING AND GROWING
over the world to focus on critical global issues. His success GLOBAL MINDSET
reflects his negotiation skills, his personal credibility, his
ability to find and connect to the most influential individuals Developing Global Mindset can rely upon both ‘‘finding’’ it in
all over the world, and his diplomatic skills. the characteristics of managers and their organizational and
To sum up, Global Intellectual Capital ensures that the industry context and ‘‘growing’’ it via leadership develop-
manager is aware of the many dimensions of global complex- ment, coaching and so on. As to finding it, we can offer some
ity. Global Psychological Capital generates the enthusiasm, clues based on our initial analyses of the correlates of Global
energy, and self-confidence to deal with such level of com- Mindset. As pointed out earlier, our database consists of
plexity. And Global Social Capital helps the manager behave over 17,000 participants. The database contains detailed
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The ‘Global Mindset’ of managers 151

demographic information about each participant, so we are that managers in different functions have significant dif-
able to examine a variety of correlates of Global Mindset, ferences in their scores on the overall Global Mindset
which would be helpful to corporations in their search for score, the three capitals, and eight of the nine elements
individuals who can succeed in global roles. In the following (except self-assurance). Managers in the communications,
pages, we provide several relevant results, but two points finance, and marketing groups had the top three scores
should be clarified: how the sample was used for statistical while those in administrative, IT, and manufacturing had
analysis and how the different groups within the sample were the lowest scores.
compared.  Organizational level matters — managers in higher levels
Having a very large database of over 17,000 cases offers in the corporation have higher average overall scores as
many opportunities for statistical analysis, but simply using well as in Global Psychological and Social Capital, but not
the large sample is not productive, because the smallest in Global Intellectual Capital. Related to Global Intellec-
difference among variables will be statistically significant tual Capital, while they have higher average scores on
due to the large sample size. To remedy this issue, we need to global business savvy and cognitive complexity, their score
take a random sample of participants that is large enough to on cosmopolitan outlook is not different from those at
produce generalizable results, but not so large to influence lower levels. Three possible explanations for the correla-
the results. To this end, we selected a complete random tion between organizational level and Global Mindset
sample of 1187 managers from the large database, consisting score: (1) Corporations recognize and reward those with
of 656 men and 531 women. higher levels of Global Mindset. (2) Those in higher levels
The second issue to address is the proper procedure for have greater global opportunities and higher levels of
comparing different groups. The simple method would be to development and support. (3) Those in higher levels are
do a means test of the groups. For example, if we want to more confident in their own abilities.
compare the average score of male versus female managers  Strong proficiency in more than one language is a strong
on Global Mindset, we could simply run a t-test to decide if predictor of Global Mindset. Managers who speak other
there are any statistically significant differences. The pro- languages tend to have higher overall scores, as well as
blem with this approach is that the difference between men scores in Global Intellectual Capital, Global Psychological
and women may actually be caused by another variable, such Capital, and Global Social Capital. They also have higher
as level of education. Women may have a higher score not scores on six of the nine elements. The three exceptions
because of their gender but because the women in the are: self-assurance, diplomacy, and cognitive complexity.
sample may have higher degrees of education. In other The latter is counter-intuitive and in contradiction to
words, we need to eliminate the confounding effect of other some of the extant literature that suggest proficiency in
potential variables. We used the MANCOVA program in SPSS to several languages results in higher cognitive complexity.
control for the potential effect of confounding variables. The To emphasize again, only high levels of proficiency in other
results presented below show how different groups compare, languages is related to higher scores. Minimal, low, or
controlling for other variables. moderate levels of proficiency have no significant effect.
 The number of countries one has lived in is also important.
 Size of the corporation does not matter — Corporation size In general, the more countries a manager has lived in, the
does not seem to have any effect. Despite much bigger higher the average Global Mindset score as well as the
resources and potential global opportunities, managers scores for the three capitals and most of the nine ele-
working for larger corporations do not seem to have much ments. Longer lengths of stay result in even higher levels
of an advantage over those working in smaller companies. of Global Mindset but even living in other countries for 1—6
There are no significant differences among the managers months will result in higher scores.
working in different sizes of companies in terms of their  An international graduate degree matters. Those with a
scores on overall Global Mindset, the three capitals, and graduate degree in international management, interna-
eight of the nine elements. The only area where bigger tional business, or international affairs have a higher
companies seem to have a higher score is on Global average score on Global Mindset as well as the three
Business Savvy. Managers working at larger companies capitals. Having a master’s degree in international man-
tend to be more knowledgeable about their global indus- agement obviously enhances the manager’s Global Intel-
try. Assuming that larger companies offer their managers lectual Capital. It is also indicative of her interest in
greater variety of global opportunities and more extensive international matters (Global Psychological Capital),
training and development, this is not a surprising finding. and provides opportunities to enhance the individual’s
 Industry matters — Many industries are represented in our Global Social Capital.
database. We compared the average scores on Global  Age matters! We grouped the participants in the sample
Mindset across our top 12 industries and found that there into five different age groups: 20—29, 30—39, 40—49, 50—
is indeed an industry effect. Those in the telecommunica- 59, and over 60 years. We found managers in different age
tions industry have the highest average score on Global groups have significantly different scores on Global Mind-
Mindset, and those in the manufacturing industry have the set and the three capitals. In general, the higher the age,
lowest average scores. Managers in the manufacturing the higher the average overall scores as well as the scores
industry also showed the lowest average score on Global for Global Intellectual and Social Capital. However, the
Intellectual, Psychological, and Social Capitals. relationship between age and Global Psychological Capital
 Organizational function matters — we grouped the is more complicated. Managers in the 30—50 year age
respondents into 14 functional groups. Our findings show group have the lowest score on this capital. They have
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152 M. Javidan, D. Bowen

the lowest average score on passion for diversity, quest for synthesize and explain the variables and issues to stake-
adventure, and self-assurance. Those in the 20—29 year holders, direct reports, and business partners.
age group have the highest score on quest for adventure Consider the example of a regional manager who is pro-
but the lowest average score on global business savvy, moted to global responsibilities. Now that manager not only
cosmopolitan outlook, and cognitive complexity. needs to know about the business practices and cultures in a
 Men and women are different — there is no significant region; he or she must now simultaneously think about these
difference among men and women in terms of the overall variables in multiple regions. This requires building knowl-
Global Mindset score. However, women have higher aver- edge for each region and then understanding the dynamics of
age scores on Global Psychological Capital, passion for business operations and issues across those regions. An
diversity, intercultural empathy, and self-assurance. Men, important finding in our research of Global Intellectual Capi-
on the other hand, have higher average scores on Global tal was that many human resources development profes-
Intellectual Capital as well as global business savvy. In sionals are adept at recommending and coaching leaders
short, men seem to have a higher cognitive profile while on how to acquire knowledge, but many times stop there.
women have a higher psychological profile. Our senior executive coaches were in agreement that knowl-
edge alone does not produce results. Global leaders must
have hands-on experience and coaching about how to criti-
The importance of ‘‘finding’’ versus ‘‘growing’’ the
cally think about and use that knowledge. It is a more
three capitals. It would be ideal if we could find individuals
sophisticated development step that involves a dedication
with high levels in all three capitals, but we do not live in an
of adequate time and expertise in how to design these kinds
ideal world. However, in our imperfect world, which of the
of development activities.
three capitals should you look for when hiring managers? Our
The Global Leader Assessment Center at Najafi Global
work with hundreds of mangers shows that Global Psycholog-
Mindset Institute is an example of this kind of dynamic
ical Capital has some unique features compared to the other
design. Leaders have to work through a series of real-life
two capitals. You can teach people about global business and
global business scenarios with complex and interrelated
cross cultural issues, and you can help them improve their
global issues while juggling multiple responsibilities. The
Global Social Capital through a variety of experiential experi-
assessment center challenges participants to critically think
ences. But enhancing someone’s Global Psychological Capital
through and manage issues while being evaluated on their
is much harder and takes much more time. For example, it is
application of Global Mindset knowledge and skills. They also
not that easy to improve someone’s low passion for diversity.
receive a very detailed assessment report and a set of action
Therefore, at a minimum, companies need to make sure the
oriented suggestions for improvement.
people they hire or promote have a reasonably high level of
Enhancing Global Psychological Capital through first-
Global Psychological Capital.
hand experiences and coaching. Global Psychological Capi-
tal refers to a leader’s motivation to enter into new or
‘‘Growing’’ Global Mindset challenging global experiences and to get to know and work
with diverse new people. Both of these require a strong sense
Within the above perspective, what techniques are available of self-assurance, because self-assurance allows a leader to
to grow Global Mindset? Our research over the past few years be able to embrace unfamiliar people, practices, and envir-
has produced a series of useful methods for enhancing all onments rather than being fearful of or irritated by their
three capitals, nine dimensions and separate elements of a differences. Our research revealed that human resources
leader’s Global Mindset. We worked with many managers and development professionals recognize that building these
senior international executive coaches to generate these capabilities requires first-hand experiences. For example,
suggestions. We also reviewed both the academic and busi- ‘‘experiential learning’’ has been en vogue in corporate
ness performance literature for additional insights, tips, and training for some time. Common development methods
resources. include travel to international offices, the formation of
The complete list of suggestions is available in our forth- global project teams, business simulations, and global assign-
coming book, Developing Your Global Mindset. While the ments. The missing link, however, is often coaching.
detailed findings are more extensive than we can provide in A typical example of the importance of pairing coaching
this article, we discuss several of the central findings for with experiential learning can be seen in a global team
growing each of the three ‘‘capitals’’ of Global Mindset meeting. Global team meetings are a wonderful way for
here. dispersed members of a functional team to meet and interact
Building dynamic Global Intellectual Capital. Global with one another. The experience can be quite valuable for
Intellectual Capital is largely built by acquiring knowledge developing and strengthening relationships. When the
about global business practices and different cultures. How- experience of a global team meeting is well designed, it
ever, it also requires advanced cognitive skills to mentally can make working relationships more fluid and productive.
process, understand, and explain many pieces of complex The problem is that, according to our senior international
and often contradictory information at a time. This is why executive coaches, the design of global team meetings
simple knowledge acquisition is not sufficient. Self-directed usually centers on the agenda to accomplish tasks (e.g. goal
or instructor-led learning may be a starting point, but global setting, project plans). There are often some local cultural
leaders need to be challenged to think about multiple vari- events sprinkled into the agenda in the name of teambuild-
ables at the same time and to critically examine how they are ing, as well. So by the end of the trip, team members have
complimentary, contradictory, and how to navigate them in a likely had some fun, gained some knowledge of the local
business context. Additionally, leaders must be able to culture through experiences, and may have accomplished
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The ‘Global Mindset’ of managers 153

many of the agenda items. That does not sound too bad, but in the short term following the trip. Then a coach should
what happens when the team members returned to their own spend some time with the leaders to discuss their reactions to
regions? Did the agreements made during the meeting move the experience. The continued motivation and self-assurance
to action? Did the team members enhance their abilities to of the leaders should be discussed and at least informally
work with diverse others, or did they simply muddle through? assessed to determine additional follow-up coaching and
Did those working relationships continue to develop, or did development activities. Combining coaching with develop-
they revert back to that of colleagues who rarely interact? ment experiences produces a powerful formula for develop-
Did the participants use the experience to reflect on their ing deep Global Psychological Capital.
own capabilities and areas of development? Expanding and deepening networks to fortify Global
Remember that Global Psychological Capital boils down to Social Capital. Networking is a ubiquitous term in organiza-
a global leader’s motivation and self-assurance with diver- tions. Any leader with global responsibilities already knows
sity. Both motivation and self-assurance are affective in the importance of networking across his or her organization,
nature, and strongly influenced by attitudes about and reac- especially if that leader works in a matrix organization. Our
tions to experiences. Just because a leader participated in a research on how to develop Global Social Capital reaffirms
global team meeting — she traveled there, she went to all the the importance of networking. However, our research
cultural events, she contributed to the tasks accomplished — revealed important distinctions in what successful network-
does not mean that she was comfortable or excited to do so in ing really means and requires. It is not solely about building
the first place. It does not mean that she developed a passion an impressive number of LinkedIn connections, for example.
for diversity, or sees the value in continuing to deepen Global Social Capital is built through a combination of
working relationships with dispersed and culturally diverse both interpersonal and group relationships. While it is cer-
colleagues. And it does not mean that she improved her tainly useful to have a large network of acquaintances to call
ability to work well with diverse others. Compliance can on when needed, it is important that a global leader have a
produce participation, but does not necessarily inspire learn- deep network as well — one where interpersonal relation-
ing and development. ships are vibrant and communication is frequent. These
Skilled coaching is the key to unlock the lessons of these close, trusted connections inspire colleagues to freely help
kinds of experiences. Prior to any developmental experience, one another, collaborate well, and make and keep agree-
coaching is essential. It helps leaders understand the devel- ments. The success of a leader’s network can be assessed by
opmental objectives of the experience so they can mentally the extent that the people in that network have a compelling
and emotionally prepare. Individuals should discuss their desire to interact with the leader. The implication is that
motivations and confidence level for interacting with diverse networks require continuous ‘‘care and feeding’’ to thrive.
team members in a new environment. This discussion will Global leaders should build broad and diverse networks of
surface issues that need to be addressed prior to the meeting connections to facilitate their global reach, but the real
and will help pinpoint any pre-learning that needs to happen payoff of networking comes from staying in periodic contact
beforehand. They should receive training and coaching on with each individual in that network to maintain and deepen
how to understand and navigate cultural, political, regula- relationships.
tory or organizational differences that may arise. This pre- Our research on how to develop Global Social Capital
paration should also include coaching on how to frame the revealed that networks provide incredible development
experience. It is not just a meeting to accomplish tasks; the opportunities when they are tapped into. Whether leaders
focus should be on building cross-cultural leadership skills, are novice or experienced, there should be a number of
namely using Global Mindset capabilities to see organiza- potential mentors within their networks who can help them
tional issues and challenges from the points-of-view of cul- learn and grow in their roles. Very experienced global leaders
turally diverse team members and to integrate diverse can continue their development by focusing on being mentors
viewpoints to reach agreements. to others. In fact, in our forthcoming handbook on how to
Periodic coaching during the experience allows leaders develop Global Mindset, networks were such an important
to press the ‘‘pause button’’ on their development. With source of development for all levels of leaders that every
some expert guidance and good coaching questions, they capability has a series of development suggestions that focus
can reflect on the objectives of the development and on learning by connecting with others. Tapping one’s network
discuss successes and challenges. This discussion is vital for development purposes creates a win-win scenario: net-
to help participants course-correct when necessary and to work connections are maintained, relationships are dee-
keep their eyes on the objectives. While it may be chal- pened, and Global Social Capital is enhanced.
lenging to find the time and resources to schedule periodic
coaching, consider the consequences of not doing so. Focused Growth of Global Mindset for
Leaders who are not focused on the development objec- Organizational Results
tives or are frustrated by their experiences, are not neces-
sarily learning. Without some support along the way, any We facilitate many Global Mindset sessions and we find that
investment in the development opportunity is potentially global leaders are often very enthusiastic about enhancing all
lost. Periodic coaching throughout developmental experi- elements of their Global Mindset. We appreciate the enthu-
ences is an insurance plan for keeping development on siasm. However, our research made it clear that limited time
track. and resources make it necessary to hone in on growing the top
Finally, development experiences should be debriefed three to five most critical and immediately useful Global
after they occur. Our senior international executive coaching Mindset capabilities over the course of a performance review
partners suggest giving leaders some questions to reflect on period (i.e. 6—12 months). Focusing on fewer capabilities in
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154 M. Javidan, D. Bowen

more depth will generally produce better results, but the business depends, in large part, on how its management
actual number of capabilities to develop will depend on the team is able to adapt to their global realities. The path to
depth of knowledge and skill development needed in each globalization is littered with vestiges of ambitious compa-
area. nies who did not realize the importance of a globally
Leaders in global roles are often faced with steep learning oriented management team. Many Japanese companies
curves that they must traverse quickly to succeed in their learned this lesson the hard way during their U.S. acquisition
current responsibilities. This means that development foci binge of the 1980s. There is no shortage of stories and cases
must be chosen strategically; focusing on only the lowest of multinational companies that have either paid a heavy
scoring areas of Global Mindset (based on GMI results) may price or outright failed in their global strategies. Corpora-
not be appropriate. We advise leaders to first consider their tions who understand the importance of Global Mindset and
roles and responsibilities along with the current organiza- make an investment in developing their managers’ Global
tional priorities and goals. These criteria will help a leader Mindset are more likely to succeed in realizing their global
identify the right Global Mindset capabilities to develop now. ambitions.
As priorities shift, it is important to re-evaluate development
plans to keep them relevant, engaging, and impactful for
performance improvements.
To sum up, global business presents many opportunities.
But how big and how fast a company can succeed in global
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The ‘Global Mindset’ of managers 155

SELECTED BIBLIOGRAPHY
You can learn more about our work on Global Mindset by visiting To learn more about global firms, you can review Medard
our website, www.globalmindset.com. You can also read M. Gabel and Henry Bruner’s book, Global Inc.: An Atlas of the
Javidan, M. Hitt, R. Steers, eds., Advances in International Multinational Corporation (2003) and the Economist Intelli-
Management, vol. 19: The Global Mindset (UK: Emerald Group gence Unit report, Global Firms in 2020 (2010).
Publishing, 2007); M. Javidan, M. Teagarden, and D. E. Bowen, To learn more about the GLOBE project, you can review
Making It Overseas, Harvard Business Review, April, 2010, the article Cultural Acumen for the Global Manager: Lessons
109—113; D. E. Bowen and A. Inkpen, The Role of Global from GLOBE, in the 30th Anniversary Special Issue of Orga-
Mindset in Leading Change in International Contexts, Journal nizational Dynamics by M. Javidan and R. J. House (2001) or
of Applied Behavioral Science, 2009, 45, 239—260; M. Javidan R. J. House, P.J. Hanges, M. Javidan, P.W. Dorfman, and V.
and Mary Teagarden, Conceptualizing and Measuring Global Gupta, eds., Culture, Leadership, and Organizations: The
Mindset, in: W. H. Mobley, Y. Wang, and Li Ming, eds., Advances GLOBE Study of 62 Societies (Thousand Oaks: Sage Publica-
in Global Leadership, 2011; and M. Javidan and J. Walker, tions, 2004).
Developing Your Global Mindset: The Handbook for Successful To learn more about the current literature on global
Global Leaders (forthcoming, 2013). leadership, you can review M. E. Mendenhall, J.S. Osland,
To learn more about the link between Global Mindset and A. Bird, G. R. Oddou, M. L. Maznevski, M. J. Stevens, and G.
performance, you can review O. Levy, S. Beechler, S. Taylor, K. Stahl, Global Leadership: Research, Practice, and Devel-
and N. Boyacigiller, What Do We Talk About When We Talk opment, 2nd Edition (New York and London: Routledge,
about Global Mindset? Managerial Cognition in Multinational 2013); P. Caligiuri, and V. Di Santo, ‘‘Global Competence:
Corporations, Journal of International Business Studies, What Is It and Can It Be Developed Through Global Assign-
2007, 38, 231—258, Beechler, Taylor & Levy, The Crucial ments?’’ Human Resource Planning, 2001, 24(3), 35—37; P.
Yet Illusive Global Mindset, in: H. Lane, M. Mendenhall, M. Caligiuri and I. Tarique, ‘‘Predicting Effectiveness in Global
Maznevski & J. McNett, eds., Handbook of Global Manage- Leadership Activities,’’ Journal of World Business, 2009,
ment: A Guide to Managing Complexity, (Oxford: Blackwell, 44, 336—346, P.C. Earley and S. Ang, Cultural Intelligence:
2004), 81—93; C. A. Bartlett and S. Ghoshal, Managing Across Individual Interactions Across Cultures (Stanford, CA.:
Borders: The Transnational Solution (Boston, MA.: Harvard Stanford University Press, 2003), and R. Johnson and R.
Business School Press, 1989), and D. Livermore, Leading with Oberwise, Developing Global Leaders, (Palgrave McMillan,
Cultural Intelligence, (AMACOM, 2010). 2012).

Mansour Javidan received his M.B.A. and Ph.D. degrees from the Carlson School at the University of Minnesota. He
is Garvin Distinguished Professor and Director of Najafi Global Mindset Institute (www.globalmindset.com) at
Thunderbird School of Global Management. Mansour is the past president and chairman of the board of directors of
the GLOBE (Global Leadership and Organizational Behavior Effectiveness) research project, and is designated an
expert advisor (global leadership) by the World Bank and a senior research fellow by the U.S. Army.

David Bowen received his M.B.A. and Ph.D. degrees from the Broad School at Michigan State University. He holds
the G. Robert & Katherine Herberger Chair in Global Management at Thunderbird School of Global Management. He
has twice served as chief academic officer at Thunderbird. His publications have focused on service management
and HRM effectiveness.

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