Intl ldrshp 7 19-2012

© 2012 by Gregory Zerovnik. All right reserved.
International Leadership
Gregory F. Zerovnik, EMBA, PhD
July 19, 2012

Topics
 Leadership
 Definition & Uses
 Strategic Keys for Success
 Role of Culture / People as Groups
 National culture
 Business culture
 The Company
 Big 5 Trait Theory
 How personality correlates with business

―It is more important to do the right thing, than
to do things right.‖ —Peter F. Drucker
 Leaders – Decide on the right thing to do
 Managers – Execute the right thing, in the right way
Who are Leaders?
Classical Leaders:
Sun Tzu
Julius Caesar
Genghis Khan
Alexander the Great
George Washington

Leadership and Business
 Good results are not the same as good leadership
 Other factors may come into play:
 Political connections
 Corruption
 Joss
 There are good leaders (Mother Teresa) and bad leaders (Hitler)
 Whether good or bad, the leader is the person in charge
Business Leaders:
Sam Walton, Walmart
Carlos Ghosn, Nissan
Ratan Tata, diversified industries
Yang Yuanqing, Lenovo

Leadership Theories
 Trait theories
 Leaders are born, not made
 Behavioral theories
 Leadership can be taught/learned
 Contingency theories
 It all depends on the situation
 Transformational theories
 Ways to change organizations for the better

Leader Traits (characteristics)
 Physical vitality and stamina
 Intelligence and action-
oriented judgment
 Eagerness to accept
responsibility
 Task competence
 Understanding followers and
their needs
 Skill in dealing with people
 Need for achievement
 Capacity to motivate people
 Courage and resolution
 Trustworthiness
 Decisiveness
 Self-confidence
 Assertiveness
 Adaptability/flexibility

Leader Behaviors
Concern for task
 Concrete objectives / organization is key
Concern for people
 Followers are people, not just “production
units”
Directive leadership
 Giving and taking orders / discipline
Participative leadership
 Sharing decision-making with others

Contingency Theories, Pt. I
4 ways to lead / 4 situations
 Telling
 High task / low relationship (Theory X, Taylorism)
 Selling
 High task / high relationship (coaching the willing, less able)
 Participating
 Low task / high relationship (good abilities, low willingness)
 Delegating
 Low task / low relationship (intrinsically motivated teams)

Contingency Theories, Pt. II
Primal Leadership1 (emotional intelligence)
6 leadership styles (behavioral overtones)
 Visionary: values are key
 Coaching: delegation
 Affiliative: warm, people-focused
 Democratic: shared commitment
 Pacesetting: classic management by objectives
 Commanding: command &control, authoritarian
1Goleman, Boyatsiz & McKee

Transformational Theories
Transactional leadership
 Short-term focus
 Fast-turnaround
 Crisis applications
Transformational leadership
 Long-term orientation
 Strategic objectives in mind
 Crisis prevention or mitigation

Transformational Theories
Three main views
 Team leadership
 See works by Meredeith Belbin or Jean Lipman-
Blumen
 Leaders as catalysts of change
 See works by Warren Bennis or Stephen Covey
 Leaders as strategic visionaries (charismatic
leaders)
 See works by Peter Senge or Gordon Davidson

Summary of Theories
 Trait theories
 Leaders seem to have certain personality traits in
common
 Behavioral theories
 Leaders are people who do things, who perform
 Contingency theories
 How one chooses to lead depends on
circumstances
 Transformational theories
 Long-term, strategic efforts to change organizations
for the better

Unlocking leadership success
 Current environment:
 High uncertainty
 Rapid pace of change
 Trust has eroded
 Four leaders share their views1
1Source: McKinsey Quarterly, ―Leading in the 21st Century.‖
信任

Josef Ackerman
 CEO, Deutschebank
 1980s – 80% of revenue came from Germany
 mid 1990s – still at 70%
 Today, only 38& of revenue comes from Germany
―Managing risk also has become much more complex
for banks. It’s not only market risk; there is more and
more political and social risk. Increasingly, financial
markets are becoming political markets. That requires
different skills—skills not all of us have acquired at
university; how to properly deal with society, for
example, a stakeholder that has immensely grown in
importance since the financial crisis.‖

Carlos Ghosn
 Two kinds of crisis:
 Internal crisis
 The company is not being managed well
 Solution can be found internally
 External crisis
 The company faces environmental threats
 Earthquake in Japan or collapse of Lehman Bros.
 The strategy is not the question; how to adapt the strategy is the key
―I think one of the reasons Nissan has been able to cope with external
crises better than some of our competitors is that we have a more
diverse, multinational culture. We don’t just sit around waiting for the
solution to come from headquarters. We are accustomed to always
looking around, trying to find out who has the best ideas. Our people in
the US talk to our people in Japan on an equal level. We have a lot
more reference points.‖

Ellen Kullman
 Chairman of the Board, DuPont Corp.
 Pay attention to the mega-trends
 Population growth
 Resource & energy sustainability
 Environmental responsibility
―We matched our focus, our research and
development, and our capital expenditures up
against megatrends like these over the last five
years. This is the future, so we need to understand
how our science relates to it.‖

Shimon Peres
President of Israel
―States have lost their importance and strength. The old
theories—from Adam Smith to Karl Marx—have lost their
value because they are based on things like land, labor,
and wealth. All of that has been replaced by science. Ideas
are now more important than materials. And ideas are
unpredictable. Science knows no customs, no borders. It
doesn’t depend on distances or stop at a given point…. It is
a new world. You may have the strongest army—but it
cannot conquer ideas, it cannot conquer knowledge.‖

Leaders & Governance
 Owners and Managers
 Managers are employed by owners
 They act as agents of the owners
 Their authority comes from the owners, who are
directly represented by the board of directors
 The Board of Directors approves corporate strategy
 The top management team carries out the strategy
 The CEO should answer to the board
 The Board should be independent of the managers
 Outside directors must be part of a board
 In China, many corporations are public-private with
ownership shared by the state

Leaders & Culture
 Geert Hofstede
 Original study in 1970s for IBM
 Updated in 2001
 Five factors of culture
 Power-Distance
 Individualism-Collectivism
 Masculinity-Femininity
 Uncertainty Avoidance
 Long-Term vs. Short-Term Orientation

Corporate Culture
 Corporation culture reflects two components
 National culture (we have already studied)
 Group norms
 Group Norms
 Group norms depend on the influence of both
leaders and followers
 Both are influenced by National Culture
 But followers are influenced by National Culture and
individual personalities
 Peers and subordinates
 Leaders

Power Distance
 The extent to which the less powerful members of
organizations and institutions (like the family)
accept and expect that power is distributed
unequally. This represents inequality (more versus
less), but defined from below, not from above.
It suggests that a society's level of inequality is
endorsed by the followers as much as by the
leaders.
Source: http://www.geert-hofstede.com/

Power Distance
Rank Country Score
1 Malaysia 104
4 Philippines 94
8/9 Indonesia 78
10/11 India 77
13 Singapore 74
15/16 Hong Kong 68
21/23 Thailand 64
27/28 South Korea 60
29/30 Taiwan 58
Rank Country Score
33 Japan 54
38 United States 40
39 Canada 39
41 Australia 36
People’s Republic
of China
80

Individualism & Collectivism
 The degree to which individuals are integrated into groups.
 Individualist
 Societies with loose ties between individuals: Everyone is
expected to look after him/herself and his/her immediate family.
 Collectivist
 Societies in which people from birth onwards are integrated into
strong, cohesive in-groups, often extended families (with uncles,
aunts and grandparents) which continue protecting them in
exchange for unquestioning loyalty.

Individualism & Collectivism
People’s Republic
of China
11
Rank Country Score
1 United States 91
2 Australia 90
4/5 Canada 80
21 India 48
22/23 Japan 46
31 Philippines 32
36 Malaysia 26
37 Hong Kong 25
Rank Country Score
39/41 Singapore 20
39/41 Thailand 20
43 South Korea 18
44 Taiwan 17
47/48 Indonesia 14

Masculinity / Femininity
 How roles are distributed between the genders
 Women's values differ less among societies than men's values
 Men's values from one country to another contain a dimension
from very assertive and competitive and maximally different from
women's values on the one side, to modest and caring and similar
to women's values on the other.
 Masculine = assertive / Feminine = modest, caring
 In feminine countries women have the same modest, caring
values as the men
 In masculine countries women are somewhat assertive and
competitive, but not as much as the men, so that these countries
show a gap between men's values and women's values

Masculinity / Femininity
Rank Country Score
1 Japan 95
11/12 Philippines 64
15 United States 62
16 Australia 61
18/19 Hong Kong 57
20/21 India 56
24 Canada 52
25/26 Malaysia 50
Rank Country Score
28 Singapore 48
44 Thailand 34
41 South Korea 39
32/33 Taiwan 45
30/31 Indonesia 46
People’s Republic
of China
51

Uncertainty Avoidance
 Society's tolerance for uncertainty and ambiguity
 The extent to which a culture programs its members to feel
either uncomfortable or comfortable in unstructured situations.
 Unstructured situations are novel, unknown, surprising, different from
usual. Uncertainty avoiding cultures try to minimize the possibility of
such situations by strict laws and rules, safety and security measures,
―there can only be one Truth and we have it.‖
 People in uncertainty avoiding countries are more emotional and
motivated by inner nervous energy.
 Uncertainty accepting cultures are more tolerant of opinions different
from what they are used to; they try to have as few rules as possible.
People within these cultures are calm and contemplative, and not
expected by their environment to express emotions

Uncertainty Avoidance
Rank Country Score
7 Japan 92
16/17 South Korea 85
26 Taiwan 69
28 Singapore 48
30 Thailand 64
30/31 Indonesia 46
37 Australia 51
41/42 Canada 48
Rank Country Score
43 United States 46
44 Philippines 44
45 India 40
46 Malaysia 36
49/50 Hong Kong 29
People’s Republic
of China
36

Long-term Orientation
 This fifth dimension was found in a study among students in
23 countries, using a questionnaire designed by Chinese
scholars.
 Values associated with Long Term Orientation are thrift and
perseverance.
 Values associated with Short Term Orientation are respect for
tradition, fulfilling social obligations, and protecting one's “face.”
 Both the positively and the negatively rated values of this
dimension are found in the teachings of Confucius, the
influential Chinese philosopher who lived around 500 B.C.
The dimension also applies to countries without a Confucian
heritage.

Long-term Orientation
Rank Country Score
2 Hong Kong 96
3 Taiwan 87
4 Japan 80
5 South Korea 75
7 India 61
8 Thailand 56
9 Singapore 48
Rank Country Score
15 Australia 31
17 United States 29
20 Canada 23
21 Philippines 19
People’s Republic
of China = 98
rank = #1

National Culture Summary

Corporate Culture
 Typical corporate culture terms include:
 Innovation culture (high technology firms)
 Warrior culture (commodity firms)
 Cooperative culture (retailers, distributors)
 Learning culture (start-ups, education)
 Informal culture (high-tech, some services)
 Formal culture (finance, consulting)
 These are not exclusive and firms may have a
dominant culture, as well as one or more subcultures

Summary
 International Leadership Requirements
 Good traits
 Effective behavior (action)
 Adaptability to changing circumstances
 A long-term, transformative orientation
 Awareness of national & corporate cultures

Thank you!
谢谢
Xièxiè
I wish to acknowledge the teachingsof Dr. Peter Drucker
and the works of Dr. Geert Hofstede, and Dr. Richard
Lewis. Their works and lessons are at the foundation of
this presentation.

Intl ldrshp 7 19-2012

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