managing the global enterprise - amazon web ……tim cook, ceo of apple - interview, fast company,...
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José Santos
José (Joe) Santos
Kuala Lumpur, 3 December 2015
Managing The Global Enterprise Organizational Integration
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José Santos
In a “Global World”, ...
Dispersion of world-class lead user knowledge.
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José Santos
Created in the World
In a Global World...
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José Santos
In a “Global World”...
Leading from the World
Leading from one building
(… in Shenzhen, 2006)
(… in Hong Kong, 2011)
(2009-2013)
(≈1987-2003)
(… in Brussels, 2015)
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José Santos
In a “Global World”...
Leading from the World
(Source: Santos, HBR 2007)
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José Santos
ü Interconnected, Interdependent, Integrated
ü International specialization ü Dispersion of world-class knowledge
ü A union ... of differences at a distance ü The performance … of an abstract whole
ü Uncertainty
ü High objective uncertainty ü Very high subjective uncertainty
A Global World: IIIU
(Source: Santos, forthcoming)
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José Santos
ü Geography (region / country / site)
ü Business (industry / company / unit)
ü Function (activity)
How global is your “world”? Your IIIU?
What and how are the interactions between your “place”
and other countries? And with the “whole”?
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José Santos
Global Innovation
and Competitive Advantage
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José Santos
Global Advantage: National or Metanational?
National Metanational
Superior performance depends on the attributes of
national origin
Superior performance depends on the capabilities of the
organisation and management team
(Porter, 1990) (Doz, Santos, & Williamson, 2001)
Projecting to the World Learning from the World
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José Santos
National or Metanational, that is the question
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José Santos
Global Integration
Across Companies
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José Santos
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José Santos
1999
2004
(Source: Renault-Nissan Alliance Report 2014)
2014
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José Santos
(Source: Renault-Nissan Alliance Report 2014)
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José Santos
(Source: Renault-Nissan Alliance, 2005)
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José Santos
(Source: Renault-Nissan Alliance Report 2014)
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José Santos
Leadership Challenges in a Global World
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José Santos
Local Performance
Using local knowledge locally!
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José Santos
Universal Performance
Sharing knowledge across borders!
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José Santos
Source: Bloom et al, 2012 (worldmanagementsurvey.org)
Universal Performance
Sharing knowledge across borders!
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José Santos
Global Performance
Integrating knowledge across borders!
(Source: Li & Fung)
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José Santos
Global Performance
(Source: Santos)
Integrating knowledge across borders (and across companies)!
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José Santos
The Challenge of Global Integration
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José Santos
A “Global Organization” is made of “Local Organizations”
… each evolving in its local environment
Country H Country J Country T Country H
HQ
Country J Country W
HO Operations Operations Operations Operations
Local organizations are tangible and feel real, natural.
Global organizations are intangible and feel abstract, artificial. (National allegiance may become a serious issue.)
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José Santos
(Source: IBM presentation, 2008)
What “Being Global” is about ...
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José Santos
HQ
Country H Country T
Local Operations
Local Operations
Local
Operations
Local Operations
One Team-at-the-Top*
Global Integration is a Process
How do we (an inclusive “we”) design/decide, coordinate, and control what we do in our units around the world to maximize global
performance? How do we act as a unity and not as a multiplicity?
Global Integration is about collaboration, not centralization. Global Integration is about active local units abroad, not drones.
But it is about “local performance” as a means, not an end.
* The eGLT: “extended Global Leadership Team”
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José Santos
This is what the top of a “Matrix” may look like …
Source: Santos, forthcoming
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José Santos
Working/Managing Together
C&C(Collocated
& Confluent )
LOCATIONOne Multiple
PLACE
Same
Diverse D&D(Dispersed & Diverse)
(Community, History)
(Space, Time)
(Source: Santos, 2013)
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José Santos
Tim Cook, CEO of Apple - Interview, Fast Company, Mar 18, 2015
… or not?
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José Santos
Your experience of a “global organization”?
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José Santos
Thank you.
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José Santos
Organization Integration
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José Santos
The Matrix
Country A Country B Country C ...
Project X
Proj
ects
Geography
Project Y
Project Z
(Integration across countries with “project teams”)
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José Santos
The “Matrix”
Country A Country B Country C ...
R&D
Production
Sales
Finance Fun
ctio
n Geography
Procurement
(One solid-line and one dotted-line reporting organization – a “tilted matrix”)
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José Santos
New organisation structure (1999)
(Source: Teva case study - INSEAD)
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José Santos
Global Integration is more about process than structure …
(Source: Teva case study - INSEAD)
NB: This is an example of the generic “ARCI”– for accountable, responsible, consulted, informed – or responsibility assignment matrix.
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José Santos
The Multi-dimensional organisation (aka “Matrix”)
Country A Country B Country C ...
R&D
Production
Sales
Finance Func
tion
Geography
Procurement
(Example of a double solid-line reporting organization - in a single business company)
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José Santos
Global Integration at Nissan
(Source: Nissan 2002 case study – HBS)
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José Santos
President & CEO P. Pistorio
Telecom Periph & Auto
A. Romano
Discrete & STD ICs S. Castorina
Memories C. Bozotti
Consumer & Micro P. Geyres
Subsyst. G. Seragnoli
REGIONS GROUPS/DIVISIONS
Strategic Planning A. Dutheil
CFO C. Ferro
TQEM G. Auguste
Treasurer P. Mosconi
Human Resources A. Dutheil
STAFF FUNCTIONS
Front-end Manuf.
L. Bosson
Back-end Manuf.
G. Seragnoli
Central R&D
J. Monnier
CENTRAL FUNCTIONS
Europe E. Villa
North America R. Pieranunzi
Asia/Pac. J.C. Marquet
Japan T. Onikura
Emerg. Mkts C. Papa
AST A. Cuomo
Communications C.E. Ottaviani
(Source: STMicroelectronics, 2004)
A multidimensional organization in a Manufacturing MNC
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José Santos
Country A
Country B
Country C
The geography-function hybrid
(aka “front-back”)
CEO
R&D Production Sales
Procurement Service
Sales Service
Sales Service
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José Santos
(Source: Ikea case study – HBS)
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José Santos
(Source: Pernod Ricard)
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José Santos
Fish do not know water, even if they see it!