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    BERSIN & ASSOCIATES RESEARCH REPORT | V.1.0

    Katherine Jones, Ph.D.,

    Principal Analyst

    Karen OLeonard,

    Principal Analyst

    Josh Bersin,

    Principal Analyst

    September 2012

    Global Leadership:

    Developing TomorrowsLeaders around the World

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    Global Leadership 2

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    Bersin & Associates September 2012

    The Bersin & AssociatesMembership Program

    This document is part o the Bersin & Associates Research Library. Our research

    is provided exclusively to organizational members o the Bersin & Associates

    Research Program. Member organizations have access to the largest libraryo learning and talent management related research available. In addition,

    members also receive a variety o products and services to enable talent-related

    transormation within their organizations, including:

    Research Access to an extensive selection o research reports, such as

    methodologies, process models and rameworks, and comprehensive

    industry studies and case studies;

    Benchmarking These services cover a wide spectrum o HR and L&D

    metrics, customized by industry and company size;

    Tools Comprehensive tools or HR and L&D proessionals, including toolsor benchmarking, vendor and system selection, program design, program

    implementation, change management and measurement;

    Analyst Support Via telephone or email, our advisory services are

    supported by expert industry analysts who conduct our research;

    Strategic Advisory Services Expert support or custom-tailored projects;

    Member Roundtables A place where you can connect with other peers

    and industry leaders to discuss and learn about the latest industry trends and

    best practices;

    IMPACT Conference: The Business Of Talent Attendance at special

    sessions o our annual, best-practices IMPACT conerence; and,

    Workshops Bersin & Associates analysts and advisors conduct onsite

    workshops on a wide range o topics to educate, inorm and inspire HR and

    L&D proessionals and leaders.

    For more inormation about our membership program, please visit us

    at www.bersin.com/membership.

    http://www.bersin.com/membershiphttp://www.bersin.com/membership
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    Global Leadership 3

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    Bersin & Associates September 2012

    TABLE OF CONTENTS

    Introduction 4

    Executive Summary 6

    Global Leadership: The Challenge orEconomic Growth 8

    Understanding Dierences in Leadership Styles 10

    Four Primary Functions o a Leader 11

    How Todays Leaders Dier by Country 14

    Developing the Vision 14

    Sharing the Goals 17

    Gaining Support 19

    Delivering Success 22

    Learning to Lead 26

    Developing Leadership Competencies 27

    Understanding the Dierences 28

    Conclusion: Investing or Global Agility 32

    Appendix I: Research Methodology 36

    How the Data Was Analyzed 38

    Appendix II: Leadership Competencies 40

    Appendix III: Table o Figures 41

    About Us 42

    About This Research 42

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    Introduction

    With the recession starting to wane, organizations now cite improving

    leadership bench strength1 as one o their most pressing issues and

    the problem is now global. Companies in all industries (manuacturing,consumer products, technology, business services and others) are rapidly

    expanding product and service strategies into emerging economies yet

    they do not always know how to build the right leadership in

    these geographies.

    An executive at a large Canadian bank explained the issue.

    Our biggest business opportunities are in South

    America and Europe, yet all our executives are

    Canadian. How can we develop the right leaders to

    grow in these geographies?

    When business and HR leaders address this challenge, they nd several

    daunting problems. Our research set out to help organizations meet

    these challenges by ocusing on the ollowing key questions.

    Dogeneralleadershipstylesvaryfromcountrytocountry?Ifso,in

    whatways?

    Ifcorporationsseekleaderswithspecicstrengths,wherearethey

    likelytolocatethem?

    Whataretheimplicationsforleadershipdevelopmentprogramsfora

    globalworkforce?

    Here, we investigate some o the leadership styles that typically refect

    the ways in which leaders in dierent countries approach the world

    o work.

    To answer these questions, we analyzed assessment data rom executives,

    midlevel and rst-level managers in 10 countries. Each country was

    selected based on the size o its economy and the availability o data,ensuring that we had an adequate sample rom which to draw valid

    conclusions. The assessment data was provided by SHL, a global leader

    in managerial and occupational assessment, based on the companys

    1 Bench strength reers to the capabilities and readiness o potential successors to

    move into key proessional and leadership positions.

    To understand dierences

    in leadership styles,

    our analysis included

    assessment data rom

    leaders in 10 countries.

    K EY PO INT

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    Global Leadership 5

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    Bersin & Associates September 2012

    behavioral competencies or eective leadership. Our methodology,

    along with the competencies evaluated, is described in more detail in the

    appendices at the end o this report.

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    Executive Summary

    One size does not t all in global leadership development. The skills sets

    and competencies o leaders in dierent countries vary; those variations

    have ramications or corporate leadership development andtalent strategies.

    The demands on leadership are both transactional (ocused on

    operations and execution) and transormational (ocused on inspiring

    and setting direction). Competencies to address both sets o demands

    are needed, yet they are not oten balanced in most individuals or across

    leadership teams.

    Our research uncovered the ollowing key takeaways, which are

    explained in more depth throughout this report.

    1. Leadership competencies vary by country. Our research shows that

    leaders in some countries, such as India and China, are strong in

    operational eectiveness and execution. These leaders are adept at

    analyzing complex inormation and delivering results through careul

    planning and organization. In other countries, such as Sweden,

    Denmark and the Netherlands, leaders have a stronger visionary

    and transormational style. These leaders are strategic thinkers, and

    deliver results through innovation and persuasive communication.

    As a result, a one-size-ts-all approach to leadership developmentwill not eectively meet all needs. Companies must understand these

    dierences and target leadership programs to build a diverse set

    o skills.

    2. Leaders in global companies must respect their individual dierences.

    For example, a U.S. manager, with a business-driver style ocused

    on results, may rustrate a Chinese manager who is accustomed to a

    more fexible, unstructured approach and who preers to build the

    relationship beore committing to the task. In a global organization,

    leaders must recognize their dierences and learn to work togetheror the ultimate good o the company.

    3. Companies should also consider dierences in individual

    competencies when positioning key talent. Highly skilled operational

    managers are less likely to succeed in roles in which highly

    transormational talent is needed and vice versa.

    Leaders in Sweden,

    Denmark and the

    Netherlands are

    stronger in strategic

    thinking and persuasive

    communication.

    K EY PO INT

    Due to dierences in

    styles across countries,

    a one-size-ts-all

    approach to leadership

    development will not

    eectively meet all needs.

    K EY PO INT

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    4. Furthermore, companies ollowing an expatriate model to ll

    leadership positions in their overseas operations should careully

    review this strategy. Due in part to dierences in leadership style and

    cultural awareness, the expatriate model is coming under increasing

    scrutiny. Many companies now think it better to hire and develop the

    skills o local leaders, rather than deploy expatriates with dierentstyles and cultural norms.

    5. Finally, our ndings have implications or talent acquisition as

    corporations evaluate what makes successul leaders and strive to

    ensure a diversity o styles in their leadership teams. We recommend

    that recruiters and hiring managers assess candidates or the right

    skills sets to succeed in that particular environment.

    A U.S. manager with a

    business-driver style

    may rustrate managersaccustomed to a more

    fexible, unstructured

    approach.

    K EY PO INT

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    Global Leadership: The Challengeor Economic Growth

    Todays leaders are under a microscope and ace a daunting set ocomplex business issues. With the current economic volatility, and the

    speed o social and technological change, the challenges acing leaders

    are greater than ever. The pressure is heightened by the worldwide

    visibility o ailed leadership in the press and through social media. The

    greatest business opportunities and also the greatest challenges are

    global and demand leaders who can move the company orward in the

    ace o these challenges. (See Figure 1).

    Unortunately, todays leaders requently lack skills in global businessacumen, cultural awareness and understanding o new markets. They

    are oten even less prepared to manage a diverse set o employees,

    customers and partners around the globe.

    When opening new operations, many companies deploy expatriates to

    sta these positions. But the expatriate model is coming under increasing

    scrutiny; while this strategy has in some cases been successul, in many it

    has not. Many companies now think that it is better to hire and develop

    the skills o local leaders, rather than deploy expatriates with dierent

    styles and cultural norms.

    For example, one global oods company we interviewed realized

    the ailings o the expatriate model and changed its approach. The

    2 Source: Delivering results: Growth and value in a volatile world,

    PriceWaterhouseCoopers, 2012, http://www.pwc.com/gx/en/ceo-survey/index.jhtml .

    Figure 1: Todays Talent Challenges

    54percentofCEOssaytheirresearchanddevelopmenteffortswerehamperedbytalentshortages

    45percentclaimtheymissedmarketopportunities

    41percentattributebelow-targetperformancetotalentofinsufcientquality

    Source: PriceWaterhouseCoopers, 2012.2

    Many companies now

    think it better to hire

    and develop the skills o

    local leaders, rather than

    relocate expatriates who

    have dierent styles and

    cultural norms.

    K EY PO INT

    http://www.pwc.com/gx/en/ceo-survey/index.jhtmlhttp://www.pwc.com/gx/en/ceo-survey/index.jhtml
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    Global Leadership 9

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    Bersin & Associates September 2012

    companys goal is now to ll 80 percent o its management and

    leadership positions overseas with native-born individuals, and develop

    them with the necessary skills sets.

    For these reasons, leadership development is once again on the ront

    burner. In a renewed eort to build leadership capabilities, companiesare now investing more in leadership development than they have in

    years.3 In the U.S., organizations increased their leadership development

    investments by 14 percent this year. With this increased investment,

    we estimate that U.S. companies will spend $13.6 billion on leadership

    development in 2012.

    Companies need to make sure that they are investing wisely. Leaders

    dier in skills sets and styles, and any development solution must be

    customized to accommodate these dierences. Our next section provides

    an overview o leadership styles and the competencies we analyzed.

    3 For more inormation, TalentTrends 2012: A Year of Guarded Optimism, Bersin &

    Associates / Kim Lamoureux and Josh Bersin, July 2012. Available to research members at

    www.bersin.com/library.

    http://www.bersin.com/libraryhttp://www.bersin.com/library
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    Understanding Dierences inLeadership Styles

    Leaders emerge in organizations regardless o job title. Leadersmay be managers, managers may be leaders but it is clear that the

    competencies associated with management as opposed to leadership

    can be very dierent.

    One way to look at the dierences, as proposed by John Kotter, is

    shown in Figure 2.4 This model denes management primarily in terms

    o eective execution and operations. Leadership, in contrast, creates

    the systems and processes, and changes them to take advantage o

    opportunities and to avoid hazards.

    4 Source: Force For Change: How Leadership Differs from Management, The Free

    Press / John P. Kotter, 1990.5 Source: This chart is based on the work o John Kotter,

    http://www.kotterinternational.co m/.

    Figure 2: Kotters Dierences between Management and Leadership

    Function Defnition Process Responsibility

    Management

    Makessystemsofpeopleandtechnologyworkwelldayafterday,weekafterweek,yearafteryear

    Planningandbudgeting

    Organizingandstafng

    Controllingandproblem-solving

    Takingcomplexsystemsofpeopleandtechnology,and

    makingthemrepeatedlyrunefcientlyandeffectively

    Leadership

    Createsthesystemsthatmanagersmanage,andchangestheminfundamentalwaystotakeadvantageofopportunitiesandavoidhazards

    Creatingvisionandstrategy

    Communicatingandsettingdirection

    Motivatingaction

    Aligningpeople

    Creatingsystemsthatmanagerscanmanage,andtransformingthemwhenneededtoallowforgrowth,evolution,opportunitiesandhazardavoidance

    Source: Bersin & Associates, 2012.5

    Keywords or managers

    are control, organize

    and plan. For leaders,

    keywords are create,

    inspire, motivate and

    transorm.

    K EY PO INT

    http://www.kotterinternational.com/http://www.kotterinternational.com/
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    Clearly, a winning corporate strategy has to include both skills sets in its

    leadership ranks in order to be successul. Balance is key lopsided skills

    clusters do not lead to success. Kotter maps the results o too much and

    too little o these yin-yang requirements, demonstrating that companies

    with an overabundance o managers lose agility and cannot adapt

    to changes, while an overabundance o innovative leaders can causeinstability and chaos. (See Figure 3.)

    Four Primary Functions o a Leader

    We used a similar model o competencies, developed and validated

    by SHL, to study the dierences in leaders. The SHL model provides a

    balanced view o both transactional and transormational competencies;

    it distinguishes between leaders who inspire, promoting change

    and business success (e.g., transormational) and those who excel at

    operational management, maintaining a steady-state environment

    6 Source: Force For Change: How Leadership Differs from Management, The Free

    Press / John P. Kotter, 1990, http://www.kotterinternational.com/kotterprinciples/

    management-vs-leadership.

    Innovative, adaptive, energetic, but ifan organization is large it can be on

    the edge of chaos.

    The enterprise will soon go out of

    business unless it is a monopoly.

    Meets todays commitments to

    stakeholders superbly while alsoadapting to make the enterprise

    stronger for the future.

    Solid company if it has high market

    share, but bureaucratic and

    controlling unable to adapt to a

    changing environment.

    High Competency

    Leadership

    Low Competency Management High Competency

    Figure 3: The Results o Imbalance between Management and Leadership Skills

    Source: John Kotter, 2012.6

    Leaders who are

    visionary, inspirational

    and advocates o

    change are strong

    on transormational

    competencies.

    K EY PO INT

    http://www.kotterinternational.com/kotterprinciples/management-vs-leadershiphttp://www.kotterinternational.com/kotterprinciples/management-vs-leadershiphttp://www.kotterinternational.com/kotterprinciples/management-vs-leadershiphttp://www.kotterinternational.com/kotterprinciples/management-vs-leadership
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    detly (e.g., transactional). Both types o talent are necessary likely at

    dierent times and in dierent locales. Some leaders are strong on both

    traits; some are not. HR proessionals will need to ascertain the current

    capabilities and potential o their leaders within their talent pipelines.

    The grounds or comparison are the our main unctions o a leader:

    Developingavision

    Sharinggoals

    Gainingsupport

    Deliveringsuccess

    Each unction is comprised o a transormational and a transactional

    competency. (See Figure 4.) For example, to develop a vision,

    transormational leaders rely on their creativity and strategic-thinkingcapabilities, whereas transactional managers analyze inormation and

    apply their expertise. These are two extremes most leaders may have a

    balance o these traits.

    The next section reviews leadership capabilities in the 10 countries

    researched (Australia, Belgium, China, Denmark, India, the Netherlands,

    Norway, Sweden, the U.K and the U.S.) on each o these our unctions.

    The our main unctions

    o a leader are the ability

    to develop a vision, share

    goals, gain support and

    deliver success.

    K EY PO INT

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    Figure 4: Competency Model Factors or Management versus Leadership Focus

    Competencies

    LeadershipFunction

    Defnition Management Focus(Transactional)

    Leadership Focus(Transormational)

    Developing theVision

    Thisinvolvesthecriticalanalysisofthecurrentsituation,andthegenerationofideastomoveforward(Strategy).

    Analyzing & Interpreting

    Analyzingcomplexinformationandapplyingexpertise.

    Creating &Conceptualizing

    Producinginnovativeideasandthinkingstrategically.

    Sharing the Goals

    Thisinvolvespersuasivelycommunicatingthevisiontoothers,aswellaspersonallyadaptingtothechanges

    thatthenewstrategybrings(Communication).

    Adapting & Coping

    Respondingandadaptingwelltochangeandpressure.

    Interacting & Presenting

    Communicatingwith,persuadingandinuencingothers.

    Gaining Support

    Thisinvolvesgainingotherpeoplessupportbymotivatingandempoweringthemtoimplementtheactionsneededtodeliverthestrategy(People).

    Supporting &Co-operating

    Supportingotherandworkingeffectivelywithpeople.

    Leading & Deciding

    Initiatingaction,givingdirectionandtakingresponsibility.

    DeliveringSuccess

    Thisinvolvesusingoperationalefciencyandcommercialacumento

    effectivelyimplementthestrategy(Operations).

    Organizing & Executing

    Planning,workinginanorganizedmannerand

    focusingondelivery.

    Enterprising & Perorming

    Focusingonresultsandonachievinggoals.

    Source: SHL 2012

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    How Todays Leaders Dier byCountry

    Leaders display dierent styles or behavioral postures across the 10countries we studied. Here, we look at the dierences in transactional

    and transormational styles among these leaders as refected by their

    competency data.

    We segment our analysis by the our leadership unctions discussed in the

    previous section:

    Developingavision

    Sharinggoalstoachievethatvision

    Gainingandmaintainingsupporttorealizethevision

    Deliveringsuccess

    To succeed in each one o these unctions, leadership teams require both

    transormational and transactional capabilities.

    Note that all comparisons are solely an indication o relative style

    preerences across countries. Clearly, all leaders within a country do

    not share the same style or exhibit the same behaviors. Our analysis

    represents the average among all leaders studied in each country.

    Developing the Vision

    Developing a vision involves a critical analysis o the current situation

    and generating ideas to move orward with a cogent strategy. For

    a transactional leader, the ocus may be on careully analyzing data

    and applying well-proven methods. For a transormational leader (the

    visionary), the ocus may be on creativity and the innovative production

    o ideas.In organizational growth, developing a vision is the rst stage. Leaders

    need to analyze the acts and identiy areas with the greatest need or

    change. They also need to establish a mission, develop an appealing and

    convincing image o the uture, and outline the strategy by which it can

    be achieved.

    Visionary leaders have

    stronger propensities in

    creativity, innovation and

    strategic thinking.

    K EY PO INT

    To be successul, a

    leadership team requires

    both transormational

    and transactional

    capabilities.

    K EY PO INT

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    True visionaries excel at creating the ideas and concepts that move

    the organization orward. Visionary leaders tend to have stronger

    propensities in creativity, innovation and strategic thinking. These

    leaders excel in developing a vision or the organization, while critically

    evaluating the acts, as well as or creating the ideas and concepts that

    move the organization orward. They are at their best in roles in whichthe strategy requires a undamental change and out-o-the-box thinking

    Running a successul global company requires solid in-the-box

    thinking and planning, as well. Analyzing and correctly interpreting

    acts on which to make decisions (a tendency among leaders thought

    o as conservators) is clearly a critical part o business execution.

    Transactional or operational excellence may, but oten does not, reside in

    the same leader as transormational excellence. In this case, it is important

    to have both visionaries and conservators on the leadership team.

    We reviewed how the executives, midlevel and rst-level managers

    assessed in the 10 countries compare, on average, in their approaches to

    developing their corporate visions. (See Figure 5.)

    Figure 5: Developing the Vision

    Source: : Bersin & Associates, 2012; data source: SHL, 2012

    Leadership Function:

    Developing the Vision

    Key Competencies:Analyzing & Interpreting

    Creating & Conceptualizing

    Key Style Differences:Visionary vs. Conservator

    Analyzing complex information and

    applying expertise.

    Producing innovative ideas and thinking strategically.

    Visionaries focus on new concepts, ideas and

    where the organization could be.

    Conservators focus on pragmatism and

    what already works.

    VisionaryConservator

    Norway Sweden Denmark U.S. Australia India China U.K. Netherlands Belgium

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    The ndings reveal dierences in how managers and executives develop

    a vision or the organization. Extrapolated rom their assessments, the

    range includes leaders who are more pragmatic (conservators) and

    leaders who are prone to new ideas and possibilities (visionaries).

    (See Figure 6.)

    A pragmatic or conservator approach to developing a vision appears

    to dominate in the Nordic regions. Leaders in Norway, Sweden and

    Denmark are more likely to thrive in environments in which they can

    continue to use well-proven methods to move the organization orward.

    These leaders are most comortable in resolving practical problems andmaintaining the status quo.

    A visionary style is best demonstrated by leaders rom the Netherlands

    and Belgium. These leaders excel in developing a vision or the

    organization by critically evaluating the acts, and creating the ideas and

    concepts. They are at their best in roles in which the strategy requires a

    undamental change and out-o-the-box thinking.

    One example is Layar, a Dutch provider o augmented reality technology.

    Layar has been at the oreront o this technology, which provides

    smartphone users with an array o inormation on their mobile screens

    such as the location o the nearest metro station or the most deserted

    7 Note that these terms, while making sense or an individual, can only partially

    portray the leadership tendencies or an entire nation. Figure 5 shows averages across the

    broad range o leadership styles and should not be the basis or assumptions about any

    given individual.

    A visionary style is best

    demonstrated by leaders

    rom the Netherlands

    and Belgium.

    K EY PO INT

    Figure 6: Denitions Developing the Vision7

    Leadership Style Defnition

    Conservator

    Conservatorsthriveinenvironmentswheretheycancontinuetousewell-provenmethodsanddiscourageincompatibleideas.Theyarelessinclinedtowardqualitativeanalysis,andtypicallyapplyestablishedmethodsandwaysofworkingtoresolvepracticalproblemsandmaintainthestatusquo.

    Visionary

    Visionariesexcelindevelopingavisionfortheorganizationwhilecriticallyevaluatingthefacts,andcreatingtheideasandconceptsthatmovetheorganizationforward.However,incertaincontexts,theymaybeinclinedtooveranalyzeasituationandtooverlookpositiveaspectsofthestatusquo.

    Source: SHL 2012

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    beach. The companys CEO saw an opportunity to make augmented

    reality part o every lie long beore most people could even grasp the

    concept. Through this visionary leadership, Layar is now poised to crack

    open this emerging technology market and has been named to CNBC

    Magazines list o Europes 25 Most Creative Companies.8

    Leaders in other countries (the U.S., Australia, India, China and the

    U.K.) exhibit a airly balanced mix o styles. Their preerences may lean

    toward a fexible approach to problem-solving, and a level o comort

    alternating between new and more tried-and-tested approaches.

    Sharing the Goals

    Leaders need to communicate their visions and goals. In doing so, they

    adapt their interpersonal style to persuade and infuence others to acceptand internalize those goals. Leaders also need to respond positively to

    changes in organizational mission and cope eectively with the increased

    pressure resulting rom change. The transactional manager is likely to be

    more agile at dealing with change and responding to pressure, while the

    transormational leader is more adept at communicating, persuading and

    infuencing others.

    In our study, leaders in Denmark, Sweden and the Netherlands

    demonstrate the competencies that help them to inspire others to share

    the organizations vision and goals. These leaders, reerred to as changeambassadors, are at their best in high-prole roles in which they need

    to infuence key stakeholders (see Figures 7 and 8).

    One ormer American executive, the late Steve Jobs, is an example o

    an inspirational change ambassador. Jobs had the git o being able

    to inspire his employees to accomplish incredible goals. He created an

    abiding passion in Apple employees to create ground-breaking products

    and a belie that they could accomplish what seemed impossible. One

    engineer recounted a story o working on a new development project.

    The team expected to take weeks to have a prototype ready, but Jobschallenged them to complete it in one week a seemingly impossible

    task. Miraculously, the team pulled o the eat. The employee explained

    8 Source: Europes 25 Most Creative Companies, July 2010,

    http://www.cnbcmagazine.com/story/europeas-25-most-creative-companies/1182/2/.

    More leaders in India

    and the U.S. t the

    adjuster style positive

    about change, but less

    outwardly passionateabout it.

    K EY PO INT

    http://www.cnbcmagazine.com/story/europeas-25-most-creative-companies/1182/2/http://www.cnbcmagazine.com/story/europeas-25-most-creative-companies/1182/2/
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    that somehow, when Jobs said it could be done, they believed they could

    do it.9

    Adjusters are positive about change as well, but may be less outwardly

    passionate about it. A greater number o leaders in India and the U.S. t

    this style, in which individuals behavioral postures may tend to be moresocially reserved. These leaders ocus on the positive aspects o the vision

    and strategy, and respond well to challenges.

    9 Source: Steve Jobs, Walter Isaacson / Simon & Schuster, 2011.

    Figure 7: Sharing the Goals

    Source: : Bersin & Associates, 2012; data source: SHL, 2012

    Leadership Function:

    Sharing the Goals

    Key Competencies:Adapting & Coping

    Interacting & Presenting

    Key Style Differences:Change Ambassador vs. Adjuster

    Responding and adapting well to

    change and pressure.

    Communicating with, persuading

    and influencing others.

    Ambassadors emphasize socializing decisions,

    goals and the vision.

    Adjusters are less focused on persuading others to

    buy-in to decisions and goals.

    Change Ambassador

    Adjuster

    India U.S. Belgium Australia China U.K. Norway Netherlands Sweden Denmark

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    Gaining Support

    Leaders need to gain other peoples support in achieving organizational

    goals motivating others and empowering them to take ownership

    o the actions needed to achieve the required objectives. This means

    taking decisive action and accepting responsibility a transormational

    competency. It also requires supporting others and working eectively

    with people a transactional competency.

    In gaining support, one leadership style is that o the individualist.

    These leaders are more strongly ocused on the task-related than thepeople-related aspects o the job. Individualists are open in expressing

    their own opinions and may adopt an independent advisory role within

    the group. In this study, more leaders in India and the U.S. t this

    individualist style.

    People leaders, in contrast, are more oriented toward listening to and

    motivating others. Their people-oriented approach, combined with their

    natural tendency to take responsibility, enables them to build trust and

    empower others to achieve their goals.

    Leaders in Sweden, Norway, the Netherlands and Denmark tend toward

    the people-leader style. Indeed, as countries with strong egalitarian

    values, decisions are oten made by consensus across teams. As evidence o

    their people orientation, Swedish executives generally do not dress more

    Leaders in Sweden,

    Norway, the Netherlands

    and Denmark tend

    toward a people-leader

    style.

    K EY PO INT

    Figure 8: Denitions Sharing the Goals

    Leadership Style Defnition

    ChangeAmbassador

    ChangeAmbassadorsinspireotherstosharetheorganizationsnewvisionandgoals.Theyrelatetoothersinacondentandrelaxedmanner,enjoypublicspeakingandnetworkeffectively.ChangeAmbassadorsourishonpressureandchange,projectingcondenceandprovidingreassurancetoothers.However,theymayunderestimatethepersonalchallengesexperiencedbyothersinadaptingtochange.

    Adjustor

    Adjustersfocusonthepositiveaspectsofthenewvisionandstrategy,andrespondwelltothechallengesitbrings.However,beingprivateandsociallyreserved,theymaynoteffectivelysharetheirpositiveoutlookandmissopportunitiestopersuadeandinuenceothers.Theyprefernottobethecenterofattentionandmaydislikepublicspeaking.

    Source: SHL 2012

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    elaborately than average employees10 and their pay is not so infated, as

    compared with the employee base (as compared with other countries, such

    as the U.S. and the U.K.).11 Consequently, these leaders are able to build

    trust and support among the workorce. (See Figures 9 and 10.)

    10 Source:http://www.kwintessential.co.uk/resources/global-etiquette/sweden.html.11 Source: Sweden, where CEOs come cheap and still deliver, Reuters /

    Niklas Pollard, June 14, 2012, http://www.reuters.com/article/2012/06/14/

    us-sweden-executives-salaries-idUSBRE85D0R920120614.

    Figure 9: Gaining Support

    Source: : Bersin & Associates, 2012; data source: SHL, 2012

    Leadership Function:

    Gaining Support

    Key Competencies:Supporting & Cooperating

    Leading & Deciding

    Key Style Differences:People Leader vs. Individualist

    Supporting others and working

    effectively with people.

    Initiating action, giving direction

    and taking responsibility.

    People leaders are oriented toward listening to

    others, building trust and empowering

    others to achieve goals.

    Individualists have a stronger task focus

    and express their opinions freely.

    People LeaderIndividualist

    SwedenDenmarkIndia U.S. AustraliaU.K. Belgium China Netherlands Norway

    http://www.kwintessential.co.uk/resources/global-etiquette/sweden.htmlhttp://www.kwintessential.co.uk/resources/global-etiquette/sweden.htmlhttp://www.reuters.com/article/2012/06/14/us-sweden-executives-salaries-idUSBRE85D0R920120614http://www.reuters.com/article/2012/06/14/us-sweden-executives-salaries-idUSBRE85D0R920120614http://www.reuters.com/article/2012/06/14/us-sweden-executives-salaries-idUSBRE85D0R920120614http://www.reuters.com/article/2012/06/14/us-sweden-executives-salaries-idUSBRE85D0R920120614http://www.kwintessential.co.uk/resources/global-etiquette/sweden.html
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    The ollowing case in point describes how Danish manuacturer Grundos

    exemplies a people-approach to leadership.

    Case in Point: A People Orientation atGrundos

    Grundos is a global leader in advanced pump solutions and

    water technology. Founded more than 60 years ago, Grundos

    does business in dozens o countries around the world. Itscontinuous growth (revenues grew almost 10 percent last year

    despite the recession) has been ueled by strong company

    values sustainability, open and trustworthy, ocused on people,

    independent, partnership, and relentlessly ambitious. These

    qualities come rom the Nordic culture o global growth and long-

    term sustainability.

    The companys talent engine, the name o its talent

    management approach, ocuses on growing people at all levels.

    One talent initiative launched recently involves creating newstandards or Grundos leadership. The initiative was kicked o

    with a co-creation workshop, or which 40 leaders rom around

    the world were invited to share their thoughts, inspiration and

    practices rom diverse vantage points in the organization. The

    purpose o the initiative is to bring leadership in Grundos to

    Figure 10: Denitions Gaining Support

    Leadership Style Defnition

    People Leader

    Peopleleaderslistentootherpeoplesviewsandareastuteatjudginghowbesttomotivateandempowerothers.Theynaturallyprefertotakecontrol,initiateactionandexerciseleadership.Theirpeople-focusedapproach,combinedwithareadyacceptanceofresponsibility,helpsthemgainotherpeoplestrust.Theymaynditdifcult,however,tomaketoughdecisionswhichhaveanegativeimpactonothers.

    Individualist

    Individualistsaremorestronglyfocusedontask-relatedthanonpeople-relatedaspectsofthejob.Theyprefernottoengagewiththepersonalconcernsofothersandtendnottoactinadirectivemanner.Theyareopentoexpressingtheirownopinionsandmayseektotakeanindependentadvisoryrolewithinthegroup.

    Source: SHL 2012

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    another level, supporting the companys high ambitions or the

    uture, and its ability to attract and develop great people.e

    Delivering Success

    Results matter. Identiying individuals who can actually deliver success

    is an important aspect o leadership development and succession

    planning. The eective implementation o strategy requires both solid

    organizational and operational skills (transactional capabilities),

    as well as a keen ocus on results and achievement

    (transormational capabilities).

    One leadership style or delivering success is that o the idealist. Theseleaders preer to address issues fexibly and may be uncomortable with

    a more structured approach. Idealists are less driven by the need or

    personal recognition and competition. Their steady pace and fexible

    styles allow them to deliver solid results.

    A greater number o leaders in China and the Netherlands t with the

    idealist style. With a ocus on steady improvement, this style can prove

    successul in running a mature business.

    As an example, Chinese personal computer manuacturer Lenovo

    improved its operations dramatically through system improvements and

    better supply-chain management. When Lenovo took over the business

    rom IBM, only 60 percent o orders were delivered on time. Through an

    updated management system, which allows employees to see the progress

    o orders as they go through the actory lines and shipping, that number

    now reaches as high as 90 percent. The new inrastructure also helped to

    cut logistics and overhead costs by 50 percent since the acquisition.12

    Another style o leadership in delivering success is known as the

    business driver. These leaders have a greater ocus on achieving their

    objectives and on career advancement. They identiy and act on new

    opportunities by working energetically in a systematic and organized

    12 Source: How Lenovo Pulled the Plug on IBMs Legacy, Joel

    Schectman, August 7, 2012, http://blogs.wsj.com/cio/2012/08/07/

    how-lenovo-pulled-the-plug-on-ibm%E2%80%99s-legacy/?mod=google_news_blog.

    Case in Point: A People Orientation at Grundfos (contd)

    Leaders with an idealist

    style preer to address

    issues fexibly and may

    be uncomortable

    with a more structured

    approach.

    K EY PO INT

    http://blogs.wsj.com/cio/2012/08/07/how-lenovo-pulled-the-plug-on-ibm%E2%80%99s-legacy/?mod=google_news_bloghttp://blogs.wsj.com/cio/2012/08/07/how-lenovo-pulled-the-plug-on-ibm%E2%80%99s-legacy/?mod=google_news_bloghttp://blogs.wsj.com/cio/2012/08/07/how-lenovo-pulled-the-plug-on-ibm%E2%80%99s-legacy/?mod=google_news_bloghttp://blogs.wsj.com/cio/2012/08/07/how-lenovo-pulled-the-plug-on-ibm%E2%80%99s-legacy/?mod=google_news_blog
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    manner. They are generally respected or running the operation

    smoothly and eciently.

    Figure 11: Delivering Success

    Source: : Bersin & Associates, 2012; data source: SHL, 2012

    Leadership Function:

    Delivering Success

    Key Competencies:Organizing & Executing

    Enterprising & Performing

    Key Style Differences:Business Driver vs. Idealist

    Planning, working in an organized manner

    and focusing on delivery.

    Focusing on results and on achieving goals.

    Business drivers focus on results, achieving

    goals and career advancement.

    Idealists focus on f lexibility and approaching

    tasks at a steady pace.

    Business DriverIdealist

    Norway U.S. IndiaDenmark SwedenU.K.AustraliaBelgiumChinaNetherlands

    Figure 12: Denitions Delivering Success

    Leadership Style Defnition

    Idealist

    Idealistsprefertoaddressissuesexibly.Theyderivesatisfactionfromapplyingsteadyefforttothetaskathandandmayndituncomfortableandconstrainingtoadoptamorestructuredapproach.Theyarelessdrivenbycompetition,orbytheneedforpersonalrecognition,which

    meanstheymayfailtocapitalizeonpotentialcommercialopportunities.However,theirsteadypaceandexiblestyleprovidesacounterbalancetomoreintenseapproaches.

    Business Driver

    Businessdriversfocusonresults,achievementofpersonalworkgoalsandcareeradvancement.Thismayalsomeanthattheyshowastronginterestinbusiness,commerceandnance.Theyidentifyandactuponnewopportunitiesbyworkingenergeticallyinasystematicandorganizedmanner.Whiletheymaysometimesbecomepreoccupiedwithdetail,theyaregenerallyrespectedforrunningtheorganizationsmoothlyandefciently.

    Source: SHL 2012

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    One potential drawback o the business-driver style is that the quest or

    achievement may lead to a ocus on short-term results and overshadow

    the long-term needs o the corporation. A study by Harvard Business

    School showed that companies which were ocused on short-term results

    had more volatile stock returns and were riskier investments.13 American

    business leaders have long been criticized or this tendency, which somesay helped to plunge the U.S. into its recent nancial meltdown. Certain

    industries tend to have dierent styles, with banking, business services

    and electronics tending to a shorter-term ocus, while pharmaceuticals,

    retail and beverage manuacturers ocusing more on the long term.

    As long as uture needs are not sacriced or short-term gains, a results-

    oriented approach is a positive aspect o leadership and, indeed, is

    necessary to deliver success. As demonstrated in the next case in point,

    Seagate is one company that has achieved success with a ocus on results

    and execution. The company is now supplementing that style with

    greater fexibility and ocus on teamwork, blending both transactional

    and transormational competencies.

    Case in Point: Seagate Fosters a High-Perormance Culture

    With operations in more than 30 countries, Seagate is a leading

    provider o hard drives and data-storage technologies. For years,

    the company has been run with a high-perormance culture

    ocusing all employees on commitment and execution. Seagate

    pioneered the use o an integrated goal and development

    process, and was an early user o HR talent management

    sotware. Each year, more than 95 percent o its employees dene

    their goals and create individual development plans. These goals

    are aligned all the way up to the CEO creating a tremendous

    amount o visibility and accountability.

    Goals are reset each year, and employees continuously ocus

    on their achievement within a culture o perormance and

    accountability. This type o leadership and management structure

    13 Source: The High Risks o Short-term Management, Harvard Business School / Sean

    Silverthorne, April 11, 2012, http://hbswk.hbs.edu/item/6965.html.

    http://hbswk.hbs.edu/item/6965.htmlhttp://hbswk.hbs.edu/item/6965.html
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    refects a style o ast growth, high perormance and

    disciplined execution.

    Recognizing signicant changes in the industry, Seagate is

    currently undergoing a cultural transormation supplementingits ocus on rigorous execution and engineering discipline with

    more fexibility in decision-making and an emphasis on teamwork.

    As part o this eort, Seagate has revised its key competencies,

    and is conducting workshops or directors and senior leaders.

    During the workshops, leaders discuss the current culture and the

    desired state. In addition, leaders complete an assessment that

    reveals how their individual style is aligned to the desired culture.

    Leaders then learn 10 leadership tools or promoting a more

    teamwork-oriented culture.

    Beore completing the workshop, participants create development

    plans and commitment orms, and are held accountable or their

    completion. More in-depth sessions are oered throughout the

    year to reinorce development and sustain the change in culture.

    Seagates ability to reshape its leadership style and culture in

    response to environmental infuences is one key to its continued

    success in a hypercompetitive market. e

    Case in Point: Seagate Fosters a High-Performance Culture (contd)

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    Learning to Lead

    As demonstrated in the preceding sections, leaders in the 10 countries

    studied exhibit dierent preerences relating to the transormational and

    transactional competencies. Transormational leaders think strategically,generating innovative ideas. They are adept at communicating and

    infuencing others to ollow their vision. They gain support by taking

    decisive action and providing direction, and achieve their goals by

    ocusing on results. In short, these leaders transorm their organizations

    through innovation, drive and persuasive communication.

    One Danish company, AP Moller-Maersk, is an example o an

    organization with a fair or transormational leadership. Founded

    in 1904, Maersk is one o the worlds most successul transportation,

    energy, manuacturing and retail companies. One key to Maersks long-term sustainability is through its leadership. Leaders are selected and

    evaluated using assessments, and then developed over many years.

    Rotational assignments throughout the various businesses help leaders

    to gain a global understanding o the marketplace. People development,

    innovation, growth and perormance are highly valued at Maersk, and

    have become part o the corporate culture. These values refect the

    companys ocus on transormational leadership and long-term success.

    At the other end o the spectrum, transactional leaders typically have

    a strong ocus on operational eectiveness and execution. They areadept at analyzing complex inormation and applying their expertise

    to develop a strategy. They deliver results through careul planning,

    organization and a ocus on delivery.

    One example is Indias Reliance Industries, which has achieved impressive

    results through its commitment to operational excellence. Within a short

    span o just more than three decades, Reliance Industries has emerged

    as Indias rst private company to break into the FORTUNE Global 500

    list. To achieve its signicant growth, Reliance ocuses heavily on both

    innovative leadership and technical execution. The company relies on theSix Sigma14 business strategy, encouraging managers at all levels to ocus

    14 Six Sigma is a rigorous, ocused, high-impact process that uses proven quality

    principles and techniques to reduce process variance. For more inormation on Six Sigma,

    please visit http://www.isixsigma.com, which oers articles and easy-to-read examples o

    how to apply Six Sigma to any business process.

    http://www.isixsigma.com/http://www.isixsigma.com/
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    on quality and operational excellence. The leaderships continuous ocus

    on results, without compromising operational eciency, has created a

    $66 billion company and Indias largest private sector employer.

    Developing Leadership CompetenciesWhen looking at the dierences in leaders behaviors, many people ask,

    Canleaderschangetheirstyles?Theshortansweris,Yes,toacertain

    extent. An individuals main tendencies (or behavioral posture) are likely

    to stay airly constant and are typically the allback position when under

    stress. But leaders can modiy behaviors over time.

    Understanding the makeup and potential o a leader helps organizations

    to identiy where development is needed and the extent o that

    development. Whether leaders respond to the learning interventiondepends on how motivated individual leaders are to achieve their career

    goals and the degree o change required.

    Too many global companies try to roll out a standard development

    initiative around the world, not taking into account the dierences in

    styles and skills sets across leaders. While some common components,

    such as organizational values and corporate mission, may apply around

    the globe, others will need to be customized at the local level.

    Once the necessary skills are dened, developing them is, o course,

    the next challenge. As described in the ollowing case in point, Mars

    pinpointed specic development needs among its Asian management

    teams and then created an initiative to build these capabilities.

    Case in Point: Mars Creates Asia LeadershipForum

    Mars is one o the worlds leading ood manuacturers, with

    70,000 associates in more than 65 countries. Over the past ve

    years, the company has increased its investment in leadership

    development to strengthen its talent across regional operations.

    Since Asia is a key growth market, one o Mars initiatives is to

    build a strong talent pipeline across this region.

    Mars initiative has

    helped to build stronger

    capabilities among its

    Asian management

    teams.

    K EY PO INT

    When looking at the

    dierences in leaders

    behaviors, many people

    ask, Can leaders change

    theirstyles?

    K EY PO INT

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    To this end, Mars launched its Asia Leadership Forum, a series

    o development experiences, learning events and networking

    opportunities or management teams in China, Japan, Korea,

    India, Thailand, Hong Kong, Taiwan and Southeast Asia. The

    initiative was designed to build stronger ties across countries,

    uncover the major challenges acing each market and provide

    inspiration to drive a new set o behaviors around how to win in

    the region.

    The rst session, held in Hong Kong, ocused almost entirely on

    uncovering the business opportunities in each market by building

    skills in breakthrough thinking. The second session concentrated

    on networking to strengthen personal ties across the region.

    Through a network analysis, it became clear that the ties across

    the region were weak, with inormation fowing through only

    a ew key individuals. Mars leaders were not using the diversity

    o knowledge within the region in the most eective manner.

    The goal o the networking event was to build a strong sense o

    community and to share practices across the region.

    In the nal part o the program, each countrys team presented a

    story o growth and opportunity to some o Mars highest-ranking

    executives. The goal o these sessions was to create greater

    visibility and understanding o the value o increased investment

    in the region.

    As a result o the initiative, Mars now has a better understanding

    o the business needs and growth opportunities in the region.

    In addition, leaders have a greater sense o condence around

    their capabilities and in the support rom top management or

    their uture direction. The initiative has helped to build stronger

    networks o leaders who have a shared ownership in the journey.e

    Understanding the Dierences

    Beore designing a development solution, organizations need to assess

    leaders to understand their current strengths and gaps. We would also

    advise HR leaders to develop an understanding o dierent countries

    and cultures, which will aid them in designing eective solutions. Our

    Case in Point: Mars Creates Asia Leadership Forum (contd)

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    years o research in global organizations lend some insights into why

    leadership styles vary rom one country to another.

    Culture and History

    Native-born leaders have been immersed in the history and culture o

    their homeland their entire lives. They learn values and see behaviors

    rom their parents, teachers, political leaders and riends. They are

    taught to value certain people and behaviors because these are adopted

    among the entire culture.

    The U.S., or example, is a country built on rugged individualism. Many

    o the amilies here grew rom immigrants who came to the U.S. or

    its reedom and equal opportunity. The principles o lie, liberty and

    the pursuit o happiness lead to values o independence, drive andcompetition. Moreover, many Americans think o the U.S. rst, because

    the nation is young and considers itsel an exceptional country among

    others. These values lead to the individualist and business-driver styles

    explored in the preceding section. (See Figures 9 and 10.)

    In Nordic countries, by contrast, children are taught the value o the

    collective good and the governments play a role in making sure

    that people o all economic means are taken care o and supported.

    These countries are much older and their economies grew through

    globalizationthousandsofyearsago.Youngpeoplelearnaboutglobalism, the collective good and the importance o the organization

    over the individual at an early age. These values are refected in the

    people-leader style described earlier. (See Figures 9 and 10.)

    On the other side o the globe, the Chinese have a long history o

    Conucianism and ocus on generational roles.15 The country is shiting

    rom being dominated by the state to accelerating levels o individual

    reedom. This transormation has given rise to an increasing culture o

    entrepreneurship and hard work. With their long history, many Chinese

    people take a long-term view o organizational change, which is seen intheir tendency toward an idealist style. (See Figures 11 and 12.)

    15 Source: Into China: Talent Management Essentials in a Land of Paradox, PageUp

    People Research / Sylvia Vorhauser-Smith, March 2012.

    With principles grounded

    in lie, liberty and the

    pursuit o happiness,

    many U.S. leaders tend

    toward the individualist

    and business-driver styles.

    K EY PO INT

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    Political Conditions

    The role o a government, and its view o commerce and international

    business aect leadership styles in dierent locales. Consider the degree

    o control, or example, the Chinese Communist Party maintains over

    all aspects o business and media. Chinas governmental practices can

    conuse and rustrate business people rom countries with very dierent

    ideologies and practices. This has caused some corporations to reconsider

    doing business there.16

    Maturity and Size o the Corporations

    Leadership qualities vary by organizational size and maturity. Founder-

    run companies are oten started by a charismatic leader, someone who

    is entrepreneurial and innovative. As companies grow and mature, they

    oten become more operational. Facing quarterly nancial reports and

    being accountable to shareholders, they become increasingly concerned

    with maintaining a steady state. However, as companies grow, the

    competencies that support clear communication and gaining support also

    grow in importance.

    Particularly in high-growth markets such as Asia, leaders may need to

    take on more responsibility relatively early in their careers. With most

    organizations still on a growth track, these leaders will have to learn

    key skills in a rapidly changing environment. This includes the maturity

    to appreciate what a leader is, manage role transitions, and understand

    business strategy and operations. Todays comprehensive leadership

    development solutions must include areas that enable leaders to mature

    aster with a deeper and more structured ocus than traditional

    leadership programs.17

    Industry Variances

    Conservative companies are likely to breed conservative, operational

    behavior, especially in industries in which risk mitigation is highly prized.

    For example, scal responsibility and regulations impact governmental

    16 Source: Into China: Talent Management Essentials in a Land of Paradox, PageUp

    People Research / Sylvia Vorhauser-Smith, March 2012.17 Source: Emerging Leadership Trends in India, Harvard Business Publishing, 2011.

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    agencies and healthcare organizations. They are less likely, thereore,

    to reward highly innovative, risk-taking leaders. Technology companies,

    such as Apple and Google, on the other hand, go out o their way to

    oster creative, innovative behavior.

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    Conclusion: Investing or GlobalAgility

    Global expansion is one actor ueling additional spending on leadershipdevelopment. Most large businesses are opening up new markets,

    requiring leaders with entrepreneurial skills, as well as with knowledge

    o local customs. In addition, with operations spreading around the

    globe, leaders now need to manage across geographic boundaries.

    Employers thus need to create virtual talent pools around the world to

    enable them to put talent where it is needed.18 This requires a new set o

    skills to manage employees, customers and partners with diverse cultures

    and needs.

    Our research reveals the necessity o understanding the competencies andpotential within the leadership ranks, and the need or diversity within

    the leadership team. Organizations require dierent types o leaders to

    open up new markets and to meet ever-changing business conditions.

    The ollowing is a summary o key ndings and recommendations rom

    our research.

    Tailored Development Since the balance o competencies varies rom

    country to country, executives and leadership development proessionals

    cannot adopt a one-size-ts-all approach to leadership development.

    Organizations must meet leaders where they are and use scientically

    developed assessments to determine where a leaders initial strengths lie.

    Development can then be tailored or the individual.

    Many companies create global leadership programs and then customize

    them to meet local needs. The approach at General Mills, or example, is

    to blend a universal or corporate standard with local culture and business

    priorities. In striking this balance, the organization remains unied on

    leadership expectations and values which are common around the world,

    while remaining relevant to local needs. The companys CLO, who sees

    real value in local input to development solutions, said,

    18 Source:GloballyMobileWorkforcesAreChangingAreYou

    KeepingUp?,Mercer,May15,2012, http://www.mercer.com/articles/

    globally_mobile_workforces_are_changing*.

    A global, one-size-ts-all

    leadership solution will

    not work, since leaders in

    dierent countries may

    have very dierent styles

    and skills sets.

    K EY PO INT

    http://www.mercer.com/articles/globally_mobile_workforces_are_changinghttp://www.mercer.com/articles/globally_mobile_workforces_are_changinghttp://www.mercer.com/articles/globally_mobile_workforces_are_changinghttp://www.mercer.com/articles/globally_mobile_workforces_are_changing
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    I have found local adoptions to be quite innovative

    and have leveraged them for later global leadership

    development. Remember, not all leadership wisdom

    springs from headquarters!

    Respect Individual Dierences Leaders in global companies mustrespect the individual dierences o all those working with them. A U.S.

    leader with a business-driver style ocused on results may rustrate a

    Chinese leader who is accustomed to a more fexible approach and values

    the opportunity to build the relationships beore committing to the task.

    Individuals must recognize their dierences and learn to work together

    or the ultimate good o the company.

    Broaden Leadership Capability Sets Eective leaders have a blend

    o transactional and transormational styles. HR leaders look or

    opportunities to broaden leaders experiences, so that they canstrengthen traits in areas in which they are less comortable. For

    example, visionary leaders can hone their operational skills through

    special assignments, job rotations or group projects.

    Play to Their Individual Strengths The goal is not to create all leaders in

    the same mold. Although leaders should broaden their styles, companies

    must careully position key talent to their strengths. Highly skilled

    operational-style managers are less likely to succeed in roles in which

    highly transormational talent is needed, and vice versa. The t o the

    leader to the need is critical or organizational success; ascertaining thatt through the types o employee intelligence shared in this report is

    essential.

    As an example, Cisco groups its leaders into our categories innovators,

    scale business-growers, cost-cutters and turnaround specialists. The

    company has ound that a leader who is good at one o these types

    should move to opportunities or which that type is needed (i.e., rom

    one innovation business to another innovation business). Trying to place

    a cost-cutter in an innovation business, or example, ails to recognize

    each leaders traits and likely will not succeed.

    Understand the Culture We strongly recommend that business and

    HR proessionals study the history and culture o the countries in which

    they do business. As our research shows, leadership styles vary based on

    culture. A highly eective leader in the U.S., or example, may ail quickly

    in a collaborative culture like the Nordics, without sensitivity training.

    Although leaders should

    broaden their styles,

    companies must careully

    position key talent to

    their strengths.

    K EY PO INT

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    Leaders in the Middle East, i they grew up in a patriarchal culture, may

    appear to be adversely gender-biased when moved into another culture.

    In looking or expatriates or oreign nationals to ll positions across

    borders, it is imperative to recognize the leadership competencies and

    styles in a particular geography. Although the expatriate model is stillcommon, many companies are shiting away rom it, recognizing that

    many expatriates lack the knowledge o the culture and local markets

    needed to succeed in these roles. I expatriates are used to ll positions,

    it is important to prepare them or these assignments, allowing time to

    understand and adjust to the norms in a new culture.

    Recruit the Right Skills Sets Finally, beyond executive development,

    there are implications or talent acquisition as corporations evaluate the

    skills sets that make leaders successul and strive to ensure a diversity o

    styles in their leadership teams. We see tremendous value in the use oscientic assessments to help in making the recruiting o executives

    more eective.

    A highly eective leader

    in the U.S., or example,

    may ail quickly in acollaborative culture

    like the Nordics, without

    sensitivity training.

    K EY PO INT

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    Appendix IResearch Methodology

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    Appendix I: Research Methodology

    In the summer o 2012, Bersin & Associates analyzed assessment data

    provided by global assessment provider, SHL. The data represents threesets o leaders executives, midlevel and rst-level managers. We

    evaluated the competency data across these three levels o leaders in 10

    countries, using SHLs existing leadership capability model.

    The 10 countries are Australia, Belgium, China, Denmark, India, the

    Netherlands, Norway, Sweden, the U.K., and the U.S. Each country

    was selected based on the size o its economy and the availability o

    data, ensuring that we had adequate data rom which to draw valid

    conclusions. The minimum sample size in each country was 1,000

    participants. In total, our sample represents data rom 30,576 individualsacross a total o 778 separate organizations.

    The breakdown o executives, midlevel managers and rst-level

    managers by country is shown in Figure 13.

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    Figure 14 displays the distribution o organizations by industry.

    Figure 13: Breakdown o Leader Levels by Country

    Source: : Bersin & Associates, 2012; data source: SHL, 2012

    7%

    7%

    10%

    35%

    8%

    11%

    10%

    6%

    10%

    17%

    22%

    14%

    22%

    10%

    40%

    19%

    27%

    23%

    32%

    19%

    71%

    79%

    67%

    55%

    53%

    71%

    63%

    71%

    59%

    65%

    0% 20% 40% 60% 80% 100%

    Australia

    Belgium

    China

    Denmark

    India

    Netherlands

    Norway

    Sweden

    U.K.

    U.S.

    Executives Midlevel leaders First-level leaders

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    How the Data Was Analyzed

    Our analysis primarily included data on eight major competencies. (See

    section, Appendix II: Leadership Competencies.)

    The data compares the average o leaders assessment scores in each

    country on a pair o competencies. The placement on the charts is an

    indication o relative perormance versus other countries.

    We caution against overgeneralization. This sample is indicative o trends on

    average across the 10 countries and is not applicable to individuals, per se.

    Banks14%

    Construction /Engineering

    5%

    Durable Goods /Manufacturing

    3%

    Food & Beverage5%

    Healthcare Equipmentand Services

    3%

    Industrial Transportation3%

    Insurance / Real Estate /Financial Services

    7%

    Public Sector andNon-GovernmentalOrganizations

    12%

    Oil / Gas / Mining /Energy

    1%

    Other6%

    Pharmaceuticals &Biotechnology

    5%

    Retail2%

    Support Services11%

    Technology4%

    Telecommunications9%

    Travel & Leisure6%

    Utilities2%

    Figure 14: Industries Represented

    Source: : Bersin & Associates, 2012; data source: SHL, 2012

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    Appendix IILeadership Competencies

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    Figure 15 delineates SHLs denitions o the eight key leadership

    competencies.

    Appendix II: Leadership Competencies

    Source: Bersin & Associates, 2012

    Figure 15: SHLs Eight Leadership Competencies

    Leading and DecidingTakescontrolandexercisesleadership.Initiatesaction,givesdirectionandtakesresponsibility.

    Supporting andCo-operating

    Supportsothersandshowsrespectandpositiveregardfortheminsocialsituations.Putspeoplerst,workingeffectivelywithindividualsandteams,clientsandstaff.Behavesconsistentlywithclearpersonalvaluesthatcomplementthoseoftheorganization.

    Interacting and PresentingCommunicatesandnetworkseffectively.Successfullypersuadesandinuencesothers.Relatestoothersinacondentandrelaxedmanner.

    Analyzing and InterpretingShowsevidenceofclearanalyticalthinking.Getstotheheartofcomplexproblemsandissues.Appliesownexpertiseeffectively.Quicklylearnsnewtechnology.Communicateswellinwriting.

    Creating andConceptualizing

    Opentonewideasandexperiences.Seeksoutlearningopportunities.Handlessituationsandproblemswithinnovationandcreativity.Thinksbroadlyandstrategically.Supportsanddrivesorganizationalchange.

    Organizing and ExecutingPlansaheadandworksinasystematicandorganizedway.Followsdirectionsandprocedures.Focusesoncustomersatisfactionanddeliversaqualityserviceorproduct

    totheagreedstandards.

    Adapting and CopingAdaptsandrespondswelltochange.Managespressureeffectivelyandcopeswithsetbacks.

    Enterprising andPerorming

    Focusesonresultsandachievingpersonalworkobjectives.Worksbestwhenworkisrelatedcloselytoresultsandtheimpactofpersonaleffortsisobvious.Showsanunderstandingofbusiness,commerceandnance.Seeksopportunitiesforself-developmentandcareeradvancement.

    Source: SHL 2012

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    Appendix III: Table of Figures

    Figure 1: Todays Talent Challenges 8

    Figure 2: Kotters Dierences between Management and Leadership 10

    Figure 3: The Results o Imbalance between Management and Leadership Skills 11

    Figure 4: Competency Model Factors or Management versus Leadership Focus 13

    Figure 5: Developing the Vision 15

    Figure 6: Denitions Developing the Vision 16

    Figure 7: Sharing the Goals 18

    Figure 8: Denitions Sharing the Goals 19

    Figure 9: Gaining Support 20

    Figure 10: Denitions Gaining Support 21

    Figure 11: Delivering Success 23

    Figure 12: Denitions Delivering Success 23

    Figure 13: Breakdown o Leader Levels by Country 37

    Figure 14: Industries Represented 38

    Figure 15: SHLs Eight Leadership Competencies 40

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    About Us

    Bersin & Associates is the only research and advisory consulting rm

    ocused solely on WhatWorks research in enterprise learning and

    talent management. With more than 25 years o experience in enterprise

    learning, technology and HR business processes, Bersin & Associates

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    Bersin & Associates can be reached at http://www.bersin.com or at

    (510) 251-4400.

    About This Research

    Copyright 2012 Bersin & Associates. All rights reserved. WhatWorks

    and related names such as Rapid e-Learning: WhatWorks and The

    High-Impact Learning Organization are registered trademarks oBersin & Associates. No materials rom this study can be duplicated,

    copied, republished or reused without written permission rom Bersin &

    Associates. The inormation and orecasts contained in this report refect

    the research and studied opinions o Bersin & Associates analysts.

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