Jack Ma or the best leader in China
For all his confidence, Jack Ma is not without worries. He believes his biggest challenges are to create genuine value for his customers, to work cooperatively with the government, and to build his team of global leaders. He would like to use his wealth to found a university for entrepreneurs that can produce the next generation of Chinese entrepreneurs. “Our challenge,” Ma said, “is to help more people to make money in a sustainable manner. That is not only good for them but also good for society.”
Developing Global Intelligence (GQ)
Ma embodies the global intelligence, or GQ, that is needed for today’s global leaders. Succeeding in the new global context will require companies to cultivate a cadre of executives—as many as 500 per company—who have the capabilities of global leaders. Developing these new leaders requires unique leadership experiences, ideally in emerging markets, combined with leadership development programs that differ materially from today’s corporate training programs. Traditionally, the latter have focused on managerial skills and building one’s functional knowledge. Yet the shortcomings of leaders—and their subsequent failures—usually result from the lack of leadership capabilities that we call global intelligence, or GQ.
GQ consists of seven elements, all of which are essential for global leaders:
Several of these characteristics—such as awareness—seem very similar to parts of the process we’ve examined for discovering your True North. That’s by design. Global interactions heighten the stress that leaders face. The more global the context, the more demanding leadership becomes. When leaders are placed in emerging market situations, the complexity increases exponentially because the differences in language, culture, customer preferences, negotiating tactics, business practices, laws, and ethical standards are so great. The same applies to the activities of daily living in these countries. That’s why many otherwise solid leaders struggle with global assignments and working in emerging markets.
Let’s examine each of these characteristics of global leaders.
Being a global leader requires the ability to understand today’s volatile world and foresee changes coming in the years ahead. Global leaders must be able to adapt quickly to the rapidly changing global context by shifting resources to opportunity areas and developing contingency plans to cope with adverse geopolitical situations.
This is particularly true in emerging markets, where frequent changes in government, currency movements, financial crises, ethnic conflicts, wars, and terrorism may literally change the business climate overnight. In recent years, we have seen this happen in Greece, Egypt, Iraq, Pakistan, Ukraine, Russia, and India, to mention just a few. Global leaders must be prepared to alter their tactics quickly to adjust to changes.
Leaders need to understand the world around them, as well as themselves—their strengths, vulnerabilities, and biases—to perceive how they will react to the significant cultural differences they encounter. When people from developed countries live in emerging markets, they become much more aware of themselves and their insecurities as they begin to understand the complexities of other languages, being in the minority, and differences in cultures and norms.
Global leaders must have deep curiosity about the cultures they encounter. This includes a personal passion for diverse experiences and an insatiable desire to learn from other cultures. They also must be humble to recognize that different cultural norms and ways of doing things guiding other cultures may often be superior to their own. When you visit an emerging market, such as China or India, do you stay in a deluxe hotel and eat in Western restaurants, or do you get out into the country, meet the people, go to local markets and shops, and visit people’s homes to see how they live? That marks the difference between domestic leaders traveling overseas and global leaders who are open to experiencing all the world has to offer.
Empathy is the ability to walk in someone else’s shoes. This requires humility and the capability to engage people from different cultures personally, rather than standing back and judging them. Empathy builds rapport and bonding and creates lasting relationships. Only with empathy are leaders able to draw the highest level of engagement from colleagues from different cultures and empower them to achieve exceptional performance.
The challenge for global leaders is to align all employees around the company’s mission and its values, a commitment that transcends national and cultural differences. Achieving alignment is far more difficult in a global context because the business practices and ethics in emerging markets often differ so dramatically from those of developed countries. Thus, global leaders are asking local employees to put the company’s mission and values ahead of the business practices and values in countries where they have grown up and worked. It is no longer sufficient just to comply with the laws and ethics without regard for negative consequences their business practices may have on the countries in which they operate. However, this does not mean giving up their culture and the norms by which they live, because norms can vary widely from country to country.
In a global context, collaboration is the ability to create horizontal networks that cut across geographic lines, bring people together around common goals, and create a modus operandi that transcends geographic norms. In authentic global collaborations, participants put company and project goals first and work together in partnerships to achieve them. The most successful geographic collaborations are led by global leaders who know the strengths and weaknesses of each regional group and who make assignments within the team to take advantage of their relative strengths.
One of the greatest challenges global leaders face is incorporating local and global issues into an integrated corporate strategy. Such a strategy enables them to optimize their position in a wide array of local markets efficiently to create sustainable competitive advantage. Doing so requires deep understanding of local markets and the global vision to see how their companies can serve their customers’ needs in a superior manner by leveraging their corporate strengths. That’s the only way they can outcompete local companies, which often have a cost advantage because they operate in the region.
We don’t believe in “Think local; act global.” Instead, we believe in “Act local; think global.” The company starts by acting locally, creating relevance through an understanding of consumer needs and desires and their local cultures. Then we leverage Unilever’s vast global resources to deliver superior products to meet those needs. This is how we gain competitive advantage over local producers. We are committed to bringing our expertise to local markets.