THUNDERBIRD Global Mindset The Key to Success in

THUNDERBIRD Global Mindset: The Key to Success in Intercultural Interactions Mansour Javidan Dean of research and Garvin Distinguished professor Global Mindset ® is a registered trademark of Thunderbird School of Global Management. All rights reserved.

Organizations’ Global Challenges and Opportunities

The Challenge in Intercultural Interactions How to influence individuals, groups, and organizations inside and outside your own organization representing diverse cultural/political/institutional systems to help achieve your organization’s global ambitions.

The Globalized World of Business

The key to Success in Intercultural Interactions: Global Mindset

Global Mindset A set of individual attributes that help influence individuals, groups, organizations, and systems that are unlike your own.

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 and organizations Assess Thunderbird’s impact on students’ Global Mindset- Pre and post test Offer a suite of solutions to enhance the Global Mindset of those involved in intercultural interactions

education training/HR #1 sampling plan: interviews, focus groups w/int’l scholars sr. acad. n-30 #2 sampling plan: interviews and small group discussions with international managers, execs, scholars n=200 management, org studies language/ x-cult Review literatures, formulate research frame n=8 global scholars international relations create/refine research questions validate via expert judges Obj. #1 investigate the nature and relevance of “global mindset" critique internally revise as needed categorize perceptions/ experiences/observations of “global mindset”+ analyze data, observations, participant discussions #3 sampling plan: expert informant conference n=44 #5 generate items re: Intel/Psych/Soc capital n-100 int’l MBA’s + psychometricians create Global Mindset Inventory draft -Obj. #2 validate construct, revise to state-of-art scholarly perspective #4 sampling plan: interviews w/ sr. exec. experts n=17 feed back to participants revise as needed focused group discussions w/participants collect additional data, consolidate into emergent themes final ‘reality’ check, including emergent factors of GI Mindset #6 pilot test: int’l MBA’s n-, 207 revise Items to assure psychometric soundness Obj. #3 validate construct, revise to state-of-art practitioner perspective differentiate and define “global mindset” identity antecedents, consequences, and applications contingencies of “global mindset” revise as needed drill int’l leaders experiences/insights re: invid/org gl mindset successes #7 pilot test #2 int’l managers n/800 The Global Mindset Inventory

Companies Represented in the Global Mindset Surveys • • • • • Amway • Baker Hughes • Banco Santander • Cisco • Dow Chemical Company • DTCC • Eaton Corporation • EDS Corporation • EMC • Fluor Corporation • Fulbright Foundation • Georgetown MBA Program • Henkel • Hydro • Intel China • Johnson & Johnson • Legrand • LG Electronics Lincoln Electronic Holdings, Inc. Marriott Mc. Donald’s Corporation Medtronic Peace Corps Petronas Raytheon Rich Products Corporation SK Academy Smith International Solar Turbines, Inc. State Farm Insurance Company Swanson The Standard Bank Vitro Wal-Mart The World Bank

• Global Mindset is a set of individual attributes that enable and facilitate intercultural interactions

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. ”

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%

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.

Global Mindset and Effective Intercultural Interaction Management, Vol. 19: The Global Mindset. Elsevier. Social Capital Psychological Capital Individuals who have a global mindset Intellectual Capital Individuals who possess the behavioral flexibility and discipline to act appropriately Individuals who are capable of perceiving, analyzing and decoding the global operating environment Individuals who can accurately identify effective managerial action in the global operating environment Behavioral Repertoire Beechler, S. and Javidan, M. (2007). “Leading with a global Mindset. ” In Javidan, M. , Hitt, M. A. , and Steers, R. M. (eds) 2007. Advances in International Individuals who are effective in influencing people from different sociocultural systems Global organization’s ambitions What is the game? What are the rules? How do we win?

GLOBAL MINDSET Intellectual Capital Psychological Capital Social Capital Global Business Savvy Passion for Diversity Intercultural Empathy Cognitive Complexity Quest for Adventure Interpersonal Impact Cosmopolitan Outlook Self-Assurance Diplomacy

Intellectual Capital (IC) Global Business Savvy Cosmopolitan Outlook Cognitive Complexity Knowledge of global industry Knowledge of cultures in different parts of the world Ability to grasp complex concepts quickly Knowledge of global competitive business & marketing strategies Knowledge of geography, history and important persons of several countries Strong analytical and problem solving skills Knowledge of how to transact business & manage risk in other countries Up-to-date knowledge of important world events Ability to understand abstract ideas Knowledge of supplier options in other parts of the world Knowledge of economic and political issues, concerns, hot topics, etc. of major regions of the world Ability to take complex issues & explain the main points simply & understandably

Psychological Capital (PC) Passion for Diversity Quest for Adventure Self-Assurance Interest in exploring other parts of the world Interest in dealing with challenging situations Energetic Interest in getting to know people from other parts of the world Willingness to take risks Self-confident Interest in living in another country Willingness to test one’s abilities Comfortable in uncomfortable situations Interest in variety Interest in dealing with unpredictable situations Witty in tough situations

Social Capital (SC) Intercultural Empathy Interpersonal Impact Diplomacy Ability to work well with people from other parts of the world Experience in negotiating contracts in other cultures Ease of starting a conversation with a stranger Ability to emotionally connect to people from other cultures Strong networks with people from other cultures and with influential people Ability to integrate diverse perspectives Ability to understand non-verbal expression of people from other cultures Reputation as a leader Ability to listen to what others have to say Ability to engage people from other parts of the world to work together Credibility Willingness to collaborate

Thunderbird Global Mindset Inventory (TGMI) • • • Internet based 10 to 15 minutes to complete In self-assessment and 360 versions Strong psychometric properties Available in Chinese and Russian. Will be available in Spanish, Arabic, and Korean • Available in several versions: corporate, student, and, non-profit/government

Interesting findings • The higher the organizational level, the higher the GM, IC, PC, and SC scores • Those working for companies with less than 100 employees, have higher levels of PC • Men have higher scores on GM, SC, and IC • Women have higher scores on Passion for Diversity

Age and Global Mindset • Those in the 41 to 65 age groups have lower GM, PC, SC, and IC scores.

Forthcoming: Do You Have a Global Mindset? Harvard Business Review, April 2010

Visit Our Website www. globalmindset. com

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