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Victor Duart. Manager Environmental Policy and Programs. IBM Corporate Environmental Affairs
16 June 2012




Managing Remote Teams
The role of the Corporate Environmental Manager in a Globally
Integrated Enterprise




                                                                                               © 2009 IBM Corporation
Managing Remote Teams in a Globally Integrated Enterprise


The Keywords



Globally Integrated Enterprise
Global Environmental Management
Managing remote teams




Source: If applicable, describe source origin

2                                                           © 2009 IBM Corporation
-In my country –said Alice, still panting a little bit while speaking-
    when running for some time in a particular direction, one usually
    get to somewhere.

    -Your country must be slow – said the Queen- Here you have to
    run at full speed to stay in the same place, and if you want to
    move to another place, you must run twice as fast!

3                                                                 © 2009 IBM Corporation
The present world
    • From “agriculture” to
      manufacturing and services.
    • Arising of the “knowledge
    • Demographic umbalancing
    • Technology reduces the
      market entry point threshold.
    • Acceleration of the pace of
      technological development
    • Globalization through
      mobility of capitals, goods,
      services, people and work.




4                                     © 2009 IBM Corporation
Evolution of global integration

     International          Multinational     Globally Integrated




    “Central” in one      Replicated        Global knowledge.
    country.              operations in     Global deliveries.
    Selling in several.   many countries    Tasks in one location
    Export/Import                           used to serve clinets in
                                            many locations.




5
        S   19
                                S  20
                                                     S   21

                                                           © 2009 IBM Corporation
Implications in the company networks


    International      Multinational   Globally Integrated




6                                                   © 2009 IBM Corporation
Economic flows are increasingly multi-directional

                                           Global investment banks
                                               send derivatives
                                             processing to Dublin

                                                                     Between 2000 and
                                                                      2003, foreign firms
                                                                         built 60,000
                                                                     manufacturing plants
                                                                          in China




                                                                            Asian clothing
                                                                             manufacturers
                                                                              outsourcing
                                                                            design to Italian
                                                                               designers
      Asian chipmakers
           using US
         engineers for
           expertise     US radiologists
                          send x-rays to
                           Australia for
                            analysis

237                                                                           © 2009 IBM Corporation
IBM: 40 years of environmental leadership
http://www.ibm.com/ibm/environment/information/40_Years_of_IBM_Environmental_Leadership.pdf




                                  First written environmental policy.
                                  Original signed by TJ Watson Jr in
                                                                                          1976
                                                      1971
8                                                                                                © 2009 IBM Corporation
IBM's Approach to Environmental Management


     Long history of commitment to               Deploy and sustain
      environmental leadership                     comprehensive programs
      – Whether or not the topic is popular        – Anchored in a global environmental
      – Through lean times and good times            management system
                                                   – Integrated throughout the business
                                                   – Require consistent execution on
     Manage environmental affairs                   global basis
                                                   – Act responsibly and quickly as
      as a strategic imperative                      necessary
      – Invest in and maintain a high level of
        technical leadership
      – Make decisions and develop programs       Achieve demonstrable results
        & requirements based on science and        – Set specific and measurable goals
        facts, often ahead of regulatory           – Quantify and disclose outcomes
        mandates
      – Anticipate opportunities and prevent
        problems
                                                  Good environmental
      – Communicate both internally and            management makes
        externally                                 good business sense
9                                                                             © 2009 IBM Corporation
IBM's Intersections with the Environment
             Operations, products, services, solutions
             Past, present and future

RESEARCH & MANUFACTURING      PRODUCT & TECHNOLOGY          PROCUREMENT                      LOGISTICS, DISTRIBUTION &
                              DEVELOPMENT                                                    FULFILLMENT
   Material selection                                           Selection and use of
   Substance prohibition or      Material selection             responsible suppliers           Product packaging
restriction                      Substance prohibition or    (e.g., environmental and           Import/export compliance
   Chemical & resource mgmt   restriction                    social responsibility)             Cross border shipments
   Pollution prevention          Energy efficiency              Regulatory compliance           Regulatory reporting and
   Discharges & waste mgmt       Product upgradability      (e.g., products, batteries)       compliance
   Regulatory permits,           Product information            Product marking, labeling,      Marking, labeling and
 reporting and compliance      disclosure                    information disclosure          information disclosure
   Horizon technologies          Regulatory compliance


SERVICES AND SOLUTIONS        REAL ESTATE MANAGEMENT        PRODUCT END-OF-LIFE              INVOLVEMENT WITH KEY
                                                            MANAGEMENT                       FUNCTIONS
•operation design and
  Data center                 •Energy & resource mgmt
                              •Discharges & recycling          Collection, reuse and           Health and safety
•IT maintenance operations    •Waste mgmt                    recycling                         Government relations
•Client outsourced            •reporting and compliance
                                Regulatory permits and         Regulatory reporting and        Marketing
•Consulting services                                         compliance                        Communications
                              •protection
                                Soil & groundwater             Use of responsible
                                                            suppliers
                                                                                               Human Resources
                                                                                               Finance
                                                                                               Legal



 10                                                                                                    © 2009 IBM Corporation
IBM's Global Environmental Management System


 Global environmental management
  system supports IBM’s corporate policy

     – Corporate directives govern IBM’s
       operations worldwide

     – Environmental requirements
       integrated throughout IBM’s operations

     – Global EMS enabled IBM to
       become first major multinational
       to obtain a single global
       registration to ISO 14001 (1997)
       IBM Spain was the first IBM ctry
       organization (2000)

11                                              © 2009 IBM Corporation
Implementing IBM’s Global Environmental Management System
  IBM implements its Global Environmental Management System with a
   tiered approach
      – With Corporate Environmental Affairs staff and business units executing
        responsibilities consistent with their defined roles



                                           Corporate
                                         Environmental
                                          Affairs staff                 Implement, monitor
     Develop and deploy                                                and provide feedback
      common system                                                         for continual
       requirements                                                        improvement
                                        Business Units




12                                                                                © 2009 IBM Corporation
“Green” Planet              Smarter Planet




      Smarter      Smarter oil   Smarter       Smarter                      Smarter
                                                            Smarter grids
      traffic      fields        agriculture   Healthcare                   distribution




      Smarter      Smarter        Smarter        Smarter      Smarter            Smarter
      water        supply         weather        cities       regions            nations
      management   chains         forecasts



13                                                                                © 2009 IBM Corporation
Cross-Border Reporting: Managing across Language, Culture,
Time and Geography
 Global resourcing as a key initiative for market
  competitiveness and workforce optimization. Global
  managers may:
       –be managing work done by employees in another country,
        or
       –have employees getting business direction from a manager
        in another country.
 It's important to know how to manage cross-border reporting
  relationships to meet business objectives in the context of:
       – different country’s laws,
       – practices and
       – cultural diversity.

Source: If applicable, describe source origin

14                                                       © 2009 IBM Corporation
VP, Madrid
 How does it work with me ?
                                                 Valencia


      Corporate Director, Somers, NY


                                                                          UK
                                    Valencia
                                                                      Germany
                                     Valencia                          Hungary
Mgr. Boulder, Co.                                                      Belgium
                                    Madrid

                                                                        France

                                                                        Japan
                                    Valencia


 15
            “Card-holder” manager              “Functional” manager      © 2009 IBM Corporation
Cross Border Roles & Responsibilities - Management

Functional Management                            Employment Relationship Management
Employees in Global Support Functions may        Each employee will have a legal employment
 report to functional leaders outside of their    relation in the country in which they work and
 country of residence                             are subject to that country's labor laws

Functional Manager will:
 Provide functional and business direction to   Employment Relationship Manager will:
  employee                                        Communicate all home country employment
 Establish employee's job scope/personal          terms and conditions and HR practices
  busines commitments / objectives                Process all HR systems input
 Assess performance                              Provide final approval for all employment
 Deliver PBC evaluation                           terms, agreeing to and processing job offers
 Discuss employee's development                   authorized by functional manager
 Balance functional resources (cross border)     Provide input to functional manager
 Review employee expenses                        Responsible for home country privacy and
 Determine cross border job offers                employment equity
                       Jointly, the Functional and Employment Relationship mgr will:
                        Monitor work/life balance
                        Support skills and career development
                        Enforce Business Conduct Guidelines (BCG)
                        Develop home country job reentry plans
                        Ensure pay equity
                        Determine job offers
16                                                                                   © 2009 IBM Corporation
What is the role of an employee in a cross-
                  border reporting relationship?


Cross-border reporting employee
      – Understands employment terms
      – Understands and adheres to applicable legislation e.g. immigration,
        visa and tax laws
      – Respects the roles of the Functional Manager and the Employment
        Relationship Manager
      – Submits auditable and timely expenses in accordance with appropriate
        guidelines
      – Recognizes that employment information will be shared with cross-
        border functional management on a need-to-know basis




 17                                                                  © 2009 IBM Corporation
What is the role of the Function HR Partner
                      vs. the Geo/Region/Country HR Partner?

 Function global HR Partner                 Geo/Region/Country HR Partner

      – Works across geographic borders       – Works within a geographic border
      – Supports the Functional Manager       – Provides advice and counsel to the
        throughout goal setting, mid-year       Functional Manager throughout
        reviews, team-based decision            performance management
        making, appraisals and                – In the even of an appeal, directs
        communication                           the Functional Manager and
      – Reaches out to the Country HR           employee to appropriate country
        Partner whenever a question             appeals channels
        arises regarding an employee in
        that country, then steers the
        Functional Manager to that
        employee’s local Employment
        Relationship Manager and Country
        HR Partner
 18                                                                  © 2009 IBM Corporation
Unique competencies of remote managers and employees

Three competencies of distant managers

     –Cultivating relationships
     –Focusing on Outcome
     –Developing Employees

Three competencies of distant employees

     –Executing
     –Employing Technological Savvy
     –Collaborating
19                                                © 2009 IBM Corporation
Ten tips for remote managers

      Create the work context
      Focus on relationships as much as tasks
      Set clear measurable objectives, give employees authonomy to
       control how, when and where they do their work
      Emphasize on-the-job training over classroom/ online
      Fine tune own management skills
      Get meployees the support they need to succeed
      Facilite connections
      For corssborder: language and cutural knowledge is valuable,
       attitude is essential
      Create a communications infrastructure
      Establish agreements on accessibility
20                                                                © 2009 IBM Corporation
Five Tips for remote employees



 Communicate, communicate, communicate
 Build own network
 Manage own visibility
 Ask for what you need
 Focus on the behaviors that drive your productivity at a
  distnace




21                                                       © 2009 IBM Corporation
Other Than traditional Office (OTTO)



 Findings: Key areas
   – Workplace isolation
   – Lack of face-to-face communication
   – Lack of visibility: “out of sight, out of mind”
   – Work-life balance issues (in my experience OTTO is an advantage
     here)
   – Challenges with building workplace relationships and developing trust
 OTTO initiative value add
   – Help building network of employees
   – Using social network tools (internal company tools)
   – Tools for work-life integration
   – Resources and training to enhance visibility
   – Employee and manager relationship building

22                                                                © 2009 IBM Corporation
Diversity includes everyone
and excludes no one. It
includes all human
characteristics that make each
of us unique as individuals.
Diversity is about
understanding, respecting,
valuing, and accommodating
human and cultural differences.
It recognizes uniqueness
versus requiring assimilation. It
is recognizing that there are
more differences within groups
than between groups. It is
intended to maximize
potential/contributions of all
segments of the population.

     Don't view welcoming a diverse workforce as assimilation –
     Instead, value differences.
23                                                                © 2009 IBM Corporation
Inclusive Leadership
describes the behaviors and
actions that realize inclusion
and the related business
benefits.

Specifically, we have defined
Inclusive Leadership as "setting
and reinforcing standards for
business practices that enable
individuals and groups to
contribute to their fullest
potential by leveraging their
unique experiences,
perspectives and viewpoints for
the collective benefit of all
stakeholders."

As such, Inclusive Leadership
describes an important role of
managers and executives to
convert the diversity and
differences that exist at various
levels into improved
performance.
24                                  © 2009 IBM Corporation
Thank You for your Attention




25                             © 2009 IBM Corporation

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Euma spain managing remote teams victor duart

  • 1. Victor Duart. Manager Environmental Policy and Programs. IBM Corporate Environmental Affairs 16 June 2012 Managing Remote Teams The role of the Corporate Environmental Manager in a Globally Integrated Enterprise © 2009 IBM Corporation
  • 2. Managing Remote Teams in a Globally Integrated Enterprise The Keywords Globally Integrated Enterprise Global Environmental Management Managing remote teams Source: If applicable, describe source origin 2 © 2009 IBM Corporation
  • 3. -In my country –said Alice, still panting a little bit while speaking- when running for some time in a particular direction, one usually get to somewhere. -Your country must be slow – said the Queen- Here you have to run at full speed to stay in the same place, and if you want to move to another place, you must run twice as fast! 3 © 2009 IBM Corporation
  • 4. The present world • From “agriculture” to manufacturing and services. • Arising of the “knowledge • Demographic umbalancing • Technology reduces the market entry point threshold. • Acceleration of the pace of technological development • Globalization through mobility of capitals, goods, services, people and work. 4 © 2009 IBM Corporation
  • 5. Evolution of global integration International Multinational Globally Integrated “Central” in one Replicated Global knowledge. country. operations in Global deliveries. Selling in several. many countries Tasks in one location Export/Import used to serve clinets in many locations. 5 S 19 S 20 S 21 © 2009 IBM Corporation
  • 6. Implications in the company networks International Multinational Globally Integrated 6 © 2009 IBM Corporation
  • 7. Economic flows are increasingly multi-directional Global investment banks send derivatives processing to Dublin Between 2000 and 2003, foreign firms built 60,000 manufacturing plants in China Asian clothing manufacturers outsourcing design to Italian designers Asian chipmakers using US engineers for expertise US radiologists send x-rays to Australia for analysis 237 © 2009 IBM Corporation
  • 8. IBM: 40 years of environmental leadership http://www.ibm.com/ibm/environment/information/40_Years_of_IBM_Environmental_Leadership.pdf First written environmental policy. Original signed by TJ Watson Jr in 1976 1971 8 © 2009 IBM Corporation
  • 9. IBM's Approach to Environmental Management  Long history of commitment to  Deploy and sustain environmental leadership comprehensive programs – Whether or not the topic is popular – Anchored in a global environmental – Through lean times and good times management system – Integrated throughout the business – Require consistent execution on  Manage environmental affairs global basis – Act responsibly and quickly as as a strategic imperative necessary – Invest in and maintain a high level of technical leadership – Make decisions and develop programs  Achieve demonstrable results & requirements based on science and – Set specific and measurable goals facts, often ahead of regulatory – Quantify and disclose outcomes mandates – Anticipate opportunities and prevent problems  Good environmental – Communicate both internally and management makes externally good business sense 9 © 2009 IBM Corporation
  • 10. IBM's Intersections with the Environment  Operations, products, services, solutions  Past, present and future RESEARCH & MANUFACTURING PRODUCT & TECHNOLOGY PROCUREMENT LOGISTICS, DISTRIBUTION & DEVELOPMENT FULFILLMENT Material selection Selection and use of Substance prohibition or Material selection responsible suppliers Product packaging restriction Substance prohibition or (e.g., environmental and Import/export compliance Chemical & resource mgmt restriction social responsibility) Cross border shipments Pollution prevention Energy efficiency Regulatory compliance Regulatory reporting and Discharges & waste mgmt Product upgradability (e.g., products, batteries) compliance Regulatory permits, Product information Product marking, labeling, Marking, labeling and reporting and compliance disclosure information disclosure information disclosure Horizon technologies Regulatory compliance SERVICES AND SOLUTIONS REAL ESTATE MANAGEMENT PRODUCT END-OF-LIFE INVOLVEMENT WITH KEY MANAGEMENT FUNCTIONS •operation design and Data center •Energy & resource mgmt •Discharges & recycling Collection, reuse and Health and safety •IT maintenance operations •Waste mgmt recycling Government relations •Client outsourced •reporting and compliance Regulatory permits and Regulatory reporting and Marketing •Consulting services compliance Communications •protection Soil & groundwater Use of responsible suppliers Human Resources Finance Legal 10 © 2009 IBM Corporation
  • 11. IBM's Global Environmental Management System  Global environmental management system supports IBM’s corporate policy – Corporate directives govern IBM’s operations worldwide – Environmental requirements integrated throughout IBM’s operations – Global EMS enabled IBM to become first major multinational to obtain a single global registration to ISO 14001 (1997) IBM Spain was the first IBM ctry organization (2000) 11 © 2009 IBM Corporation
  • 12. Implementing IBM’s Global Environmental Management System  IBM implements its Global Environmental Management System with a tiered approach – With Corporate Environmental Affairs staff and business units executing responsibilities consistent with their defined roles Corporate Environmental Affairs staff Implement, monitor Develop and deploy and provide feedback common system for continual requirements improvement Business Units 12 © 2009 IBM Corporation
  • 13. “Green” Planet Smarter Planet Smarter Smarter oil Smarter Smarter Smarter Smarter grids traffic fields agriculture Healthcare distribution Smarter Smarter Smarter Smarter Smarter Smarter water supply weather cities regions nations management chains forecasts 13 © 2009 IBM Corporation
  • 14. Cross-Border Reporting: Managing across Language, Culture, Time and Geography  Global resourcing as a key initiative for market competitiveness and workforce optimization. Global managers may: –be managing work done by employees in another country, or –have employees getting business direction from a manager in another country.  It's important to know how to manage cross-border reporting relationships to meet business objectives in the context of: – different country’s laws, – practices and – cultural diversity. Source: If applicable, describe source origin 14 © 2009 IBM Corporation
  • 15. VP, Madrid How does it work with me ? Valencia Corporate Director, Somers, NY UK Valencia Germany Valencia Hungary Mgr. Boulder, Co. Belgium Madrid France Japan Valencia 15 “Card-holder” manager “Functional” manager © 2009 IBM Corporation
  • 16. Cross Border Roles & Responsibilities - Management Functional Management Employment Relationship Management Employees in Global Support Functions may Each employee will have a legal employment report to functional leaders outside of their relation in the country in which they work and country of residence are subject to that country's labor laws Functional Manager will:  Provide functional and business direction to Employment Relationship Manager will: employee  Communicate all home country employment  Establish employee's job scope/personal terms and conditions and HR practices busines commitments / objectives  Process all HR systems input  Assess performance  Provide final approval for all employment  Deliver PBC evaluation terms, agreeing to and processing job offers  Discuss employee's development authorized by functional manager  Balance functional resources (cross border)  Provide input to functional manager  Review employee expenses  Responsible for home country privacy and  Determine cross border job offers employment equity  Jointly, the Functional and Employment Relationship mgr will:  Monitor work/life balance  Support skills and career development  Enforce Business Conduct Guidelines (BCG)  Develop home country job reentry plans  Ensure pay equity  Determine job offers 16 © 2009 IBM Corporation
  • 17. What is the role of an employee in a cross- border reporting relationship? Cross-border reporting employee – Understands employment terms – Understands and adheres to applicable legislation e.g. immigration, visa and tax laws – Respects the roles of the Functional Manager and the Employment Relationship Manager – Submits auditable and timely expenses in accordance with appropriate guidelines – Recognizes that employment information will be shared with cross- border functional management on a need-to-know basis 17 © 2009 IBM Corporation
  • 18. What is the role of the Function HR Partner vs. the Geo/Region/Country HR Partner?  Function global HR Partner  Geo/Region/Country HR Partner – Works across geographic borders – Works within a geographic border – Supports the Functional Manager – Provides advice and counsel to the throughout goal setting, mid-year Functional Manager throughout reviews, team-based decision performance management making, appraisals and – In the even of an appeal, directs communication the Functional Manager and – Reaches out to the Country HR employee to appropriate country Partner whenever a question appeals channels arises regarding an employee in that country, then steers the Functional Manager to that employee’s local Employment Relationship Manager and Country HR Partner 18 © 2009 IBM Corporation
  • 19. Unique competencies of remote managers and employees Three competencies of distant managers –Cultivating relationships –Focusing on Outcome –Developing Employees Three competencies of distant employees –Executing –Employing Technological Savvy –Collaborating 19 © 2009 IBM Corporation
  • 20. Ten tips for remote managers  Create the work context  Focus on relationships as much as tasks  Set clear measurable objectives, give employees authonomy to control how, when and where they do their work  Emphasize on-the-job training over classroom/ online  Fine tune own management skills  Get meployees the support they need to succeed  Facilite connections  For corssborder: language and cutural knowledge is valuable, attitude is essential  Create a communications infrastructure  Establish agreements on accessibility 20 © 2009 IBM Corporation
  • 21. Five Tips for remote employees  Communicate, communicate, communicate  Build own network  Manage own visibility  Ask for what you need  Focus on the behaviors that drive your productivity at a distnace 21 © 2009 IBM Corporation
  • 22. Other Than traditional Office (OTTO)  Findings: Key areas – Workplace isolation – Lack of face-to-face communication – Lack of visibility: “out of sight, out of mind” – Work-life balance issues (in my experience OTTO is an advantage here) – Challenges with building workplace relationships and developing trust  OTTO initiative value add – Help building network of employees – Using social network tools (internal company tools) – Tools for work-life integration – Resources and training to enhance visibility – Employee and manager relationship building 22 © 2009 IBM Corporation
  • 23. Diversity includes everyone and excludes no one. It includes all human characteristics that make each of us unique as individuals. Diversity is about understanding, respecting, valuing, and accommodating human and cultural differences. It recognizes uniqueness versus requiring assimilation. It is recognizing that there are more differences within groups than between groups. It is intended to maximize potential/contributions of all segments of the population. Don't view welcoming a diverse workforce as assimilation – Instead, value differences. 23 © 2009 IBM Corporation
  • 24. Inclusive Leadership describes the behaviors and actions that realize inclusion and the related business benefits. Specifically, we have defined Inclusive Leadership as "setting and reinforcing standards for business practices that enable individuals and groups to contribute to their fullest potential by leveraging their unique experiences, perspectives and viewpoints for the collective benefit of all stakeholders." As such, Inclusive Leadership describes an important role of managers and executives to convert the diversity and differences that exist at various levels into improved performance. 24 © 2009 IBM Corporation
  • 25. Thank You for your Attention 25 © 2009 IBM Corporation

Editor's Notes

  1. Key message: the world is changing – economy is transforming, new kind of workers emerging, changes in demography and development in technology enable global operation and competition. The world has become flat. To set the stage, we have to take a look at the development of the economy around us during the past years. In today’s world many things are hugely different from 100 years ago, very much different from 50 years ago and they are also different from what they were no more than 5-10 years ago. The realities of the world as we know them have changed dramatically just in a few years - and things that we have taken for granted are not certain anymore. 1) The world market has evolved during the past 200 years from pure agriculture, to manufacturing and during the second half of the last century into services. Developed economies are almost 70 % services – and developing countries are catching up rapidly. 2) The 20th Century saw the emergence of the Knowledge worker. 40 % of the work force by 1999. In the 21st century, the knowledge worker will be the dominating figure of the economy - decisive for innovation and value creation. 3) The world is also facing huge demographic imbalances that are building up. Between the regions of the world as the population is not evenly distributed around the globe. And within the regions, as for example in Europe the population is aging. This creates an imbalance between the number of working and retired population as well as takes a lot of knowledge and skills out of the market. Forrester research group in July15, 2005: In EU15 countries the number of working population is decreasing (20-59: 208,7->151,2M) and the number of people over 60 is increasing significantly (>60: 82,1->125,1M) between 2000 (28%) ->2050 (45%). For example in Italy this means that by 2025 over 32% of Italians are over 60 years old. If 20% is under 20 years old, one Italian worker is supporting one other person in the society. The gross domestic product of countries vary a lot between the developed and developing countries. GDP per capita (PPP) USD India 3300, China 6800 EU average 28100 (FR 29900, UK 30300, DE 30400, IT 29200 , SP 25500) Nordic (NO 42300, DK34600, FI 30900, SE 29800) USA 41800 4) Technology is lowering the threshold to market entry and through that creates increased competition. Technology is cheaper than ever – we are producing more transistors today than rice grains – and at a cheaperprice. And with the connectedness of everything, you are able to do business with anybody around the world. 5) With everything else, the pace of innovation is accelerating. We have seen the emergence of disruptive innovation in shortening intervals. Just as an example: It took over 100 years for telephone to penetrate the market, Internet did that in less than 10 years and now over the past 2-3 years, internet phone calls have rapidly started to gain popularity - especially within the younger consumers, companies and in cross border calls. 6) Despite some issues in the world trade organization (WTO) process, more open markets are opening up and at the same time new competitors from emerging markets are competing within our territory. Globalization is inevitable. The barriers of trade are coming down. - Or as Tom Friedman, a New York Times columnist wrote in his book, the world has become FLAT again. As I said, things that we take for granted may change over time. 350 years BC Aristotele expressed as common knowledge that the Earth is round. That fact was disputed later on with a flat world theory - but again confirmed by scientists later. And here we are again – FLAT as a pancake. Go figure… [click] But what all this boils down to is that global competition is increasing at all levels – goods, services, people and work.
  2. companies have evolved from international to multi national to globally integrated over the time. The middle row in the picture shows how the organizational model and characteristic operations evolve in the different stages of internationalization process. IBM example: we go to where the skills are, doing accounting in Bratislava and Research in Russia and purchasing in wherever, etc. etc.
  3. Examples of flows: between 2000 and 2003 alone, foreign firms built 60,000 manufacturing plants in China. Some of these factories target the local Chinese market, but others target the global market. European chemical companies, Japanese carmakers, and U.S. industrial conglomerates are all building (or have declared their intention to build) factories in China to supply export markets around the world. Imports Since 1995: imports have risen from 12% of gross domestic product to about 17% foreign money as a percentage of domestic investment increased from 7% to 32% Between 2001 and today, imports rose by three percentage points as a share of GDP, one of the main reasons that job growth was so slow. By comparison, the import share rose by only one percentage point or so in the recoveries of the early 1980s and the early 1990s. Global Investing U.S. venture capitalists investing more than $400 million in Chinese and Indian companies in the third quarter alone - National Venture Capital Assn. Ineffective Action Despite $125B spent on medical research over the past 5 years, the US has a large and growing trade deficit in advanced biotech and medical research US Fed has raised interest rates 17 times since 2004 (more than 4%) but the rate on a 10-year government bond is 4.6%, exactly where it was in 2004
  4. Examples of business units: Systems & Technology Group Integrated Supply Chain Global Technology Services Real Estate Operations Software Group Global Asset Recovery Services Research