How Companies Can Overcome the Pitfalls of Globalization

Global Vision

Overcome the Pitfalls of Globalization

Does your company have global aspirations?

How do you determine which countries to pursue and which to avoid?

 

When growth stalls, many managers decide that the answer to the slowing metrics is in going global. In many instances, managers don’t appreciate the inherent risks, miss the cultural nuances, and miscalculate the legal costs of the lofty goals globalization requires.

Robert Salomon is a professor of International Management and Faculty Scholar at NYU’s Stern School of Business and has been teaching and studying the effects of globalization for nearly 20 years. His new book, Global Vision: How Companies Can Overcome the Pitfalls of Globalization, is a guide to successfully navigating the global marketplace.

As the CEO of a global business myself, I was intrigued by the lessons in the book and reached out to Robert to share some of his findings with you.

 

The Problem of Unbridled Optimism

Global Vision . CoverIn your book, you say that one of the biggest problems with globalization is managers and their unbridled optimistic attitude. How does this increase risk?

The problem is that managers systematically overestimate the benefits of globalization and underestimate its costs. They tend to believe that globalization is relatively easy, and they therefore overlook the economic, political, and cultural risks involved.

Many people cite Thomas Friedman’s book “The World is Flat” as an urgent call toward globalization. What’s usually wrong with this thinking?

More and more research suggests that the world is less global than Friedman suggests, and not just by a little, but by a lot. And so if managers base their views of globalization on Friedman’s work, they will end up making very dangerous assumptions about globalization’s risks and challenges.

Why is overestimating market potential so prevalent?

It is prevalent because managers tend to think that consumers will respond to their company’s products similarly in every market. They therefore believe that they can simply port their existing business model to global markets with little change. In this respect, they fail to recognize the challenges that culture—in the form of different consumer cultures—can place on their business model.

 

Strategic Mistake: Porting existing business models to global markets with little change.

 

Understanding the Importance of Culture

Your research led you to the conclusion that “culture is probably the least understood.” Tell us more about the importance of culture and its role.

Culture is the least well understood of all of globalization’s challenges because culture is difficult to define and measure. Is culture about language differences? Yes. Is culture about religious differences? Yes. Is culture about differences in behaviors, norms, customs, and social structure? Yes. But even if we recognize these differences across countries, they are difficult to quantify and measure. Because culture is difficult to quantify and measure, managers end up discounting its effect on globalization. In my book, Global Vision, I discuss how culture impacts globalization and also how managers can quantify the impact of culture on global companies.

 

Culture is the least understood of the challenges of global expansion.

Tools to Become an Authentic Leader

Authentic leadership

The Power of Authenticity

Be yourself. Be true to you. Don’t try to be someone else. Don’t put on false airs. Be authentic.

 

“The essence of authenticity is being yourself fully.” –Karissa Thacker

 

Most leaders hear this advice but don’t know what it means, what to do about it, or how it impacts everyday life in the office.

Becoming an authentic leader is more than a lofty goal. It’s an essential part of your effectiveness. My own experience is that it’s often authenticity that sets the great leaders apart. We don’t always know why we are inspired by certain individuals, but I think it is this characteristic that appeals to us at a deep level.

To learn more about this subject, I read Karissa Thacker’s terrific new book, The Art of Authenticity: Tools to Become an Authentic Leader and Your Best Self. Karissa is the founder and president of Strategic Performance Solutions. She is a management psychologist, focusing on human performance and satisfaction at work. I recently asked her to share some thoughts about her work on authenticity.

 

“There is no one alive who is more Youer than You.” –Dr. Seuss

 

What I particularly like about her new book is that, as the subtitle of the book suggests, she provides tools to help with the goal.

 

Lead with Authenticity

How would you define authenticity in leadership?

9781119153429.pdfBoth authenticity and leadership are important in defining authentic leadership. Leadership is about getting things done that are both difficult and important in the context of a specific organization or more broadly any human community. Authenticity adds another layer which is being true to your own nature AS you are getting things done that are difficult and important.

What’s the relationship between authenticity and leadership?
Our typical way of thinking about authenticity is to just be yourself, and it will all turn out better. Of course, be yourself. It sounds so simple. The first problem with that is you are not that simple. We humans are just not that simple. There is no one solid self like a concrete block. Our hardwired adaptive traits as humans mean that we behave differently under different situations and circumstances. Leadership requires this adaptability. But you have to find ways to communicate who you are as you are leading effectively. More importantly, you have to figure out ways to stay in touch with what is important to you as you are in the thick of getting things done. Paying attention to the inner game and outer game at the same time is a lot easier said than done. Said another way, it is easier to just be authentic or just figure out how to get things done that are difficult and important. But the daily question is how do we do both at the same time?

 

“Authenticity is knowing, and acting on, what is true and real inside yourself…” –Robert Terry

 

Why do you think there is currently so much interest in leadership authenticity?
Trust in big institutions like our government here in the US is low. I also think that the modern era poses some challenges with upping the ante on aspects of authenticity like transparency. Like it or not, we are in an age of transparency. The boundaries between private life and work or with private life in general are not what they used to be.

Leadership is never a value-neutral concept. To say someone is a leader means we have high expectations. A lot of this interest comes down to people wanting our leaders to step up and make things happen that are good for the whole. Any robust discussion of authenticity takes you fully into the thicket of human moral psychology as authenticity is so not a value-neutral construct.

 

“Fear is not your friend if you want a culture of authenticity.” –Karissa Thacker

 

Jim Carrey’s movie Liar Liar immediately came to mind when I read your Truth Serum Question. Would you share this exercise with us?

How to Manage Poor Attitudes in the Workplace

There are so many benefits to a positive attitude. One study even shows that positive participants live up to 10 years longer than negative participants.

 

“A positive attitude reduces stress, improves performance, creativity, and relationships.” -Skip Prichard

 

A negative attitude increases stress and reduce performance, creativity and damages your leadership potential. And, studies show that a negative attitude in the workplace has a longer lasting impact on others than a positive one.

This infographic shows the dangers of a poor attitude and ways to turn it around. Catch your own attitude before it damages your team and your career.

 

Negative attitudes have a more lasting impact than positive ones.

 

 

poor-attitudes

 

Study: 77% of employees have witnessed childish behavior among colleagues.

 

Enjoy a positive day! Thank you Quill.com for the infographic.

Does Your Body Language Signal Confidence or Weakness?

Ever experience social anxiety or been nervous about an upcoming meeting or job interview? Social psychologist, Amy Cuddy has outlined some simple practices that can help anyone in stressful situations.

Her research indicates that body language can signal power or weakness:

 

“Don’t fake it ‘til you make it; fake it ‘til you become it.” -Amy Cuddy

 

Body Language that Signals Weakness and Negativity:

  • Slumping
  • Making yourself small
  • Touching your face or neck
  • Folding your arms

 

Body Language that Signals Confidence and Positivity:

  • Standing up tall
  • Making eye contact
  • Smiling

So we know body language can definitely affect the way others perceive us, but can it affect the way we perceive ourselves?


“Do our nonverbals govern the way we think and feel about ourselves?”

According to Cuddy’s research, the answer is a resounding yes.

Try it.

Force yourself to smile for five minutes straight and you will begin to feel happy.

Our bodies can change our minds. There are definite physiological differences depending on your body pose. In one study, Curry had a group of people adopt low power poses and the other group high power poses.

 


Research: Powerful body language can cause hormonal changes in the body.

 

Boost Your Own Confidence

Afterwards, their saliva was tested and the people with the high power poses had testosterone increase by 20% versus a decrease in testosterone by 10% in the other group. Actual hormonal changes take place in the body.

The group that practiced the positive body pose were much more passionate, authentic and captivating as compared to the negative group. But here’s the kicker, it wasn’t that these individuals were putting on false airs, they were simply comfortable enough to be themselves.

 


“Our bodies change our minds.” -Amy Cuddy

 

Strike a Confident Pose

Understanding Leadership Styles

It’s important to know as much as possible about your own style of leadership. I have found that sharing my preferred style with my team is not only helpful, but starts a good conversation about strengths and weaknesses. It’s equally important to know the styles of those around you. It helps build a team.

Remember: All styles of leadership work in different situations.

What type of leader are you? To take a quiz and see your type, click here.

 

“On matters of style, swim with the current; on matters of principle, stand like a rock.” –Thomas Jefferson

 

“Fashions fade, style is eternal.” -Yves Saint Laurent

 

leadership-styles

 

Want to be a better leader? Subscribe to Leadership Insights today. Because the blog post you miss won’t help!

Already on my list? Enter your email above and you'll get instructions on how to download your copy of the ebook.

 

Infographic courtesy of topmanagementdegrees.com