Global Enterprise &

Leadership
“Achieving Innovation in a Global & Dynamic Environment’

Facilitator
Prof. Dr. Ian Mackechnie
Aim of the Course
• To examine the problems faced for global business in developed
innovative products for the different markets of the world
• To understand the concepts of standardization and personalization of
products and services in a global market
• To critically examine the processes of managing a multinational team to
create and develop new products and services that are appropriate to
the market into which they will be sold.
• To understand the needs of multinational teams
• To develop appropriate leadership behaviours that will optimize the
outcomes of multinational teams
Focus of the Subject…
• The inability of organizations to facilitate collaboration and knowledge
sharing can effect concept design, strategic planning, marketing,
operational efficiency, customer connection and sales performance in
international markets
Three Current Problems…
• 1. Culture is ignored by using universal innovation and leadership
models that assume global application
• 2. A dominant culture perspective is applied due to research and
practice views from one country or region
• 3. Culture is treated as a separate topic, focusing on differences rather
than multicultural collaboration and optimizing cultural diversity in
innovation
The Global Challenge in Bringing
New Concepts to Market
Emerging Markets & Product
Innovation…
• Emerging markets, rather than mature markets, are the current and
future market challenge in terms of market growth.
• Innovative markets for these products provide growth areas for
business.
• However, cultural differences are both an opportunity and challenge,
both in terms of company communications and contribution, and
products provided for such markets
Accelerating Global Innovation
• Global innovation can be accelerated through multicultural
collaboration within firms but this will require different leadership
skills
Creating Ready for Better Product
Innovation…
• Companies must become ready to integrate better international and
multicultural engagement in terms of innovation steps of:
1. Idea development & creation
2. Strategic planning
3. Validation
4. Execution
The Multicultural Innovation
Framework
The Multicultural Innovation
Framework
1. VISION: how to create appropriate leadership and planning
strategies
2. DIALOGUE: how to create better networking communication,
learning & sharing
3. SPACE: how to create a good environment for better cultural
understanding and empathy; how to build better multicultural
teams who contribution is real and acknowledged, and creates
better motivation and trust
Effectively Orchestrating Global
Innovation
• The complex challenge for today’s organization is to create a holistic
framework that connects knowledge between the organization and its
customers worldwide.
• For leaders to effectively orchestrate global innovation they will need
to consider organizational capabilities and resources
Global Collaboration Model
Global Collaboration Model (con’t)
There are five organizational mechanisms that influence multicultural
collaboration
1. Leadership behaviour
2. Innovation strategies
3. Knowledge sharing structure
4. Communications vehicles
5. Organizational culture & team climate
Global Collaboration Model (con’t)
5 organizational mechanisms that can influence team motivation and
engagement during project collaboration through innovation routines:
1. Ideas development
2. Planning
3. Validation
4. Execution
… which all effect Global Performance
New Leadership Model for
Multinational Innovation &
Collaboration
• Specific team leadership behaviours are necessary for effectively facilitating
multicultural team collaboration during the global innovation cycle – from
concept to market.
• There are certain behaviours that are more suitable & effective for each of
the stages of leading.
Innovation cycle Leadership behaviours
• Creation Empowerment
• Planning Inclusion
• Validation Direction
• Execution Communicative
Innovation Cycle and Leadership
Behaviours
Traditional Leadership Styles
• Democratic Leadership
• Autocratic Leadership
• Laissez-Faire Leadership
• Strategic Leadership
• Transformational Leadership
• Transactional Leadership
• Coach-Style Leadership
• Bureaucratic Leadership
Leadership Behaviours
Kouzes and Posner have develop a straight forward series of leadership
practices(behaviors)
• Inspire the Vision
• Model the Way
• Challenge the Status Quo
• Encourage the Heart
• Enabling Others to Act
Global Leadership Behaviours
• Empowerment: provides the inspiration and support for the creation
phase through the development of a common vision worldwide,
engaging everyone in the development of new ideas and solutions
• Inclusive: invites collaboration through relationship and trust building;
the ability to show cultural empathy by understanding and optimizing
diverse perspectives
• Directive: applies a decisive process with the execution focus that is
valuable to the validation phase
• Communicative: nurtures open dialogue through active listening and
knowledge-sharing, connecting team members in the global network
Strategy: Innovation Strategy for
Mature & Emerging Markets
• The worldwide movement to globalization, innovation and
personalization drives the focus on knowledge and relationships
• The ability to respond to customer preferences and reconfigure
resources dynamically requires a flexible network
• As international markets demand the design and delivery of localized
products and services, organizations are facing increase pressure to
optimize knowledge and innovate across the organization.
Two Approaches: Innovation
Strategy for Mature & Emerging
Markets
APPLE:
- Strong leader in mature markets (Nth America & Europe)
- Strategy- Global- standardized products
- Local focus- mainly carriers, language & portfolio
- Universal appeal of products
SAMSUNG:
-Strong leadership in emerging markets (Asia, Middle East, Africa)
Strategy-transnational: global identity & attentive to local preferences –
market and customer with more adaptation to local needs
Types of Innovation
• 1. Exploitative – focus on incremental changes
• 2. Exploration – focus on radical innovation – new knowledge, new
markets, new approach

• The planning phase relies on knowledge of the local market

requirements to determine the level of standardization or adaptation
required for a new concept
• Level of trust and local participation can affect local attitude to
promoting the product when launched
Local Participation in Global
Innovation Cycle Phases
• Limited participation in front-end innovation with local teams focused
on execution
Dialogue: Nurturing Knowledge
Sharing & Learning
• In some cultures, there is a tendency for the teams to remain silent
and look to the leader to tell them what to do
• Sharing is seen as perhaps challenging the leader or maybe saying
something that could be ‘wrong’.
• Globally, communication and knowledge sharing will help us to
understand ‘differences’ and open up to provide new solutions
• Example- Trust Building
• East- more emphasis on building trust by socializing
• West- more focused on task, maybe socializing coming later
Dialogue: Nurturing Knowledge
Sharing & Learning
Verbal Communication
In different language groups:
• shyness,
• not comfortable to speak out;
• may not be proficient in the language being used;
• may prefer time to think;
• may prefer to communicate in writing;
• may not like or feel comfortable using formal settings or processes to
communicate, but may prefer informal settings, social settings or one-on-one.
Culture, Innovation & Knowledge
Sharing
Culture, Innovation & Knowledge
Sharing
The Leader & Power
West:
- Direct data driven knowledge
- Comfortable sharing knowledge and challenging leader
- Can appear more aggressive and overwhelming
East
- Data shared more indirectly, more story driven
- Knowledge is power, so less likely to share or allow criticism or challenge
- Not speaking is not a sign of agreement
Western & Eastern Perspectives to
Knowledge Sharing in Innovation
Listening to Local Market Voices
Perceiving Challenges by Global &
Local Team Leaders
Building Global Trust to Innovation
1. Relationship Building – foster /encourage socialization
2. Listening- really listening!
3. Responsiveness- Speed of response to ideas and comments; trust
built be follow up, which gains respect
4. Open Communication- open, honest, frequent; on/off site, face-to-
face, electronic
5. Project Contribution- meaningful work given, well defined tasks,
with feedback & acknowledgement of contribution
Motivating Multicultural Teams
1. Recognition
2. Responsiveness
3. Listening
4. Engagement – responses, transparency, feedback
5. Local connection – understanding the local market
Space: Creating an Environment for
Inclusive Innovating
• Nurturing an environment for motivation in global organizations
requires cultivation of 3 values
Optimizing a Global Innovation
Culture Through Organizational
Routines
Multicultural Collaboration Project
Process
In Summary: Multicultural
Collaboration Practices
5 Principles of Global Leadership
1. Integrity
2. Purpose
3. Sacrifice
4. Discipline
5. Compassion
(Source: Jay Clark, 2015, 5 Principles of Global Leadership)
Class Discussion
You are Director of New Product Development & Innovation is a company in Malaysia. The company
has branches in several countries including the USA (or whatever market you choose)
You are working closely with the Marketing department that is planning to launch a Malaysian
designed and made product into the USA market (or whatever market you choose). (You may select a
product of your choice)
Employees of your American branch are mostly Westerners, with a small number of Malaysian
national managers
To develop a product suitable for the USA (or chosen) market, discuss how you would organize and
plan this collaborative project, including:
1. international and multicultural engagement in terms of innovation steps of idea development &
creation, strategic planning, validation and execution
2. The five organizational mechanisms that influence multicultural collaboration: leadership
behaviour, innovation strategies, knowledge sharing structure, communications vehicles and
organizational culture & team climate
Class Discussion 2
• What “change management’ challenges might you face in realigning
your organization to a global multicultural collaborative company?
How would organize the change process? What resistance might you
face?
Class Discussion 3
• Identify and discuss what leadership qualities you will require to
manage a global collaboration process, with a diversity of cultural
perspectives?
Self Assessment
1. What leadership skills do you believe you have, and what leadership
skills do you feel you lack, to lead a multicultural international
team?
2. In what areas do you think you need to improve your multinational
skills?