Developing global leaders ensures that companies’ global strategies and objectives can be met worldwide. Global leaders need to have an understanding of the multi-cultural environments they work in.
Without the ability to communicate effectively in a number of cultural environments through behaviour adaptation, and the ability to appreciate all people regardless of their background, appearance or culture, leaders cannot develop global client relationships, close business deals and meet company objectives.
Without global leaders, companies become limited and are unable to expand successfully or become multi-national corporations.
According to one survey of senior executives, 76 percent believe their organizations need to develop global leadership capabilities, but only 7 percent think they are currently doing so effectively (Developing the Global Leader of Tomorrow, a joint project of Ashridge Business School as part of the European Academy of Business in Society (EABIS) and the United Nations Global Compact PRME).
So why are multi-national companies failing to train and equip their staff with global leadership skills?
One likely answer is the opinion that global leadership is developed through experience and cannot be taught or trained. The majority of companies believe that only leaders who have on the job experience working in multi-cultural environments possess the required skill.
However, whilst sending employees abroad to train and develop their global leadership skills may be seen as a huge expense, it is a viable training option and is becoming increasingly necessary.
The vast amount of research on global leadership provides evidence of the success of global leadership training programs which incorporate training abroad. An American Management Association study found that organizations with global leadership development programs are more likely to report higher market performance.
If multi-national companies want to retain their positions in the market and prioritize further expansion, they need to allocate resources to the required training.
Recruitment
Before focusing on training global leadership it is important to consider the recruitment process for global leaders, can all leaders be developed into global leaders or are there certain characteristics and behaviors that an individual must possess to become a global leader?
The characteristics needed to be a global leader include optimism, self-regulation, social skills, empathy, motivation to work in an international environment, networking skills and cognitive skills. Whilst some of these behaviors can be learnt, HR directors should take them into account when promoting internal personnel and recruiting new personnel for global leadership positions.
The HR departments in international companies need a long-term talent management strategy, not just for global leaders but for regional leaders also. This is especially important in the Middle East. The strategy should define what skill sets are non-negotiable when recruiting for global executive positions ,and how much training the company is willing to provide.
In supporting Vision 2021, many companies in the Middle East are focusing on recruiting more nationals as they work towards achieving the Emiratisation goals. One strategic approach in this process is using expatriates to develop local nationals, so in the long term, expatriates are no longer necessary.
According to one study, the proportion of expatriates in senior management in the Middle East declined from 56 percent to 12 percent between the late 1990s and late 2000’s (William J. Holstein, “The decline of the expat executive,” Strategy + Business, July 2008).
Although the number of expatriates is increasing in the build up to Expo 2020, the focus of long-term strategies still remains on aiming for a decline on the reliance of the expatriate workforce in the Middle East.
Global Leadership Feature