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There is increasing evidence that large scale globalization is rendering traditional ways of doing
business largely irrelevant. There is a growitig need for managers to becotne global managers with a
global perspective. We suggest that a global perspective consists of a global mindset supported by
appropriate skills and knowledge. Managers have a number of mindsets that range from the
domestically-oriented defender, and continuing on to the explorer, the controller, and the globallv-
oriented integrator. For global managers to be effective, they need to develop the global mindset of an
integrator. A global mindset allows meaningful global strategizing that requires managers to effectively
integrate the three global forces of (I) global business, (2) regional/country pressures, and (3)
worldwide functions. A global mindset and a holistic global strategy should create conditions to build
the worldwide organization characterized by specialization, interdependency, and coorditiatioti. A
global outlook is a process oftnoving an organization's structure, process, people, and culture from a
set of highly autonomous business units to one that becomes an integrated and effective global network.
and indeed the target now is the entire (1992), illustrates this changed orienta-
organization that needs to be trained tion of levels and of priorities. The chal-
and reoriented to face the emerging lenge for global managers is the ability
global challenges {Tichy, 1992). to focus on hard and soft issues simul-
Other than level of training, manag- taneously.
ers were traditionally trained in what Earlier theoretical contributions sug-
may be defined as "hard" as opposed to gested that the fundamental interna-
"soft" issues {Tichy, 1992: p. 210). The tional problem facing managers was to
focus in "hard" issues training was to reconcile the conflicting pressures of
become the low cost producer. Conse- adapting to a standardized technology
quently, the "hard" issues were oriented and product, or to respond to local mar-
toward drivers of the bottom line, and ket needs and requirements {Murtha et
the emphasis was on budgets, manufac- al., 1998). These conflicting pressures
turing, marketing, distribution, head were considered to be mutually exclu-
count, and finances. However, in the sive and existed linearly in terms of
face of reduced market power and in- zero-sum trade-offs, that Fayerweather
creased giobal competition, the focus is (1982: p. 211) termed as "unification"
now shared with "soft" issues that em- or "fragmentation" strategies.
phasize the need to be creative and to However, technological and theoretical
deliver innovative products simulta- developments have indicated that interna-
neously. The orientation, consequently, tional business strategy can be conceptu-
has shifted toward drivers of the top line
alized along multiple dimensions. Rather
and the emphasis is on values, culture,
than conceive strategy along one dimen-
vision, leadership style, innovative be-
sion, researchers (Doz & Prahalad. 1991;
havior, and risk-taking. The framework
Prahalad & Doz, 1981, 1987) have sug-
given in Figure I, adapted from Tichy
gested that strategy consists of balancing
Glohn! Managers 233
the twin pressures of global integration mindset of global managers to explain
and local responsiveness concurrently. actions and strategies of organizations
Consequently, paying simultaneous atten- taken in international business.
tion to various dimensions of strategy
{Murtha et al.. 1998) is considered to be
an appropriate way to balance these FRAMKWORK TO DEVELOP A GLOBAL
forces. Organizational capabilities to ex- PERSPECTIVE
ploit the full strategic potential of these
For managers to orient themselves and
complex pressures of integration, respon-
their priorities to the changed interna-
siveness, and coordination (Murtha et al.,
tional realities, we suggest that a triad
1998) require global mindsets that equil-
consisting of a global mindset, knowl-
ibrate these forces rather than predispose
edge, and skills, is needed by managers
decisions in favor of one dimension at the
to be globally competitive. Although a
expense of the others (Prahalad & Doz.
global mindset is a state of being essen-
1987). Bartlett and Ghoshal's (1989) def-
tially characterized by openness, and an
inition of a transnational mentality im-
ability to recognize complex intercon-
plies the ability to balance these complex
nections, global managers need a cer-
forces in pursuit of a unique strategy that
tain set of supportive knowledge and
blends them. It is worth mentioning that
skills to sustain the mindset. Knowl-
the organizational context, in terms of
edge and skills are needed to meet the
culture, corporate policies, and motiva-
changing, emerging, and increasingly
tion, must be geared toward forming and
complex conditions associated with
sustaining a holistic global outlook. In
globalization (Rhinesmith, 1993). Fig-
other words, a transnational mentality or a
ure 2 provides an illustration of how
global mindset is a completely different
global mindset, knowledge, and skills
way of looking at the world and synthe-
are interrelated.
sizing the many complex forces.
Like much of strategy research on
cognitive issues (Prahalad & Bettis, Global Mindset
1986: Grant, 1988), we focus on the A global mindset, according to
mindset of the global manager whose Rhinesmith (1993: p. 24), "is a way of
impact is felt at the organizational level. being rather than a set of skills. It is an
We take the liberty of shifting our level orientation of the world that allows one
of analysis from the manager to the to see certain things that others do not.
organization in the belief that organiza- A global mindset means the ability to
tional actions, in terms of strategies and scan the world from a broad perspec-
postures, are an aggregation of the tive, always looking for unexpected
mindset of the key and dominant deci- trends and opportunities that may con-
sion makers. Like Prahalad & Bettis stitute a threat or an opportunity to
(1986), who used the manager's domi- achieve personal, professional or orga-
nant logic to establish a linkage be- nizational objectives." A global mindset
tween the pattern of diversification and is for each manager to realize his or her
performance, we propose to use the firm's interdependence on the global
GLOBAL
MINDSET
KNOWLEDGE
•International SKILLS
socio-political and •Acculturation
economic •Leadership
perspective for managing
•Mastery of diversity
technology
economy even when the firm's aetivi- manager needs to have knowledge of
lies are seemingly confined to the do- different aspects of the interdependent
mestic environment. However, to sus- world. Skills, on the other hand, are
tain and develop a glohal mindset, a certain human and behavioral abilities
manager also needs knowledge and that managers have that help them lo do
skills. their work more effectively in the
We conceptualize a glohal mindset glohal context. It is this unique comhi-
for glohal managers to he a necessary nation of glohal mindset, knowledge,
condition to effectively handle glohal and skills that is necessary and suffi-
competition, however, it is not a suffi- cient for the making of glohal manag-
cient condition. The sufficient condi- ers.
tions that enhance and sustain a global Given the changed level of training
mindset are knowledge and skills. A and the new priorities for global man-
Table 2
The Four Mindsets and Global Perspectives
Mindsets -^ Defender Explorer Controller Integrator
LEVEL OF GLOBAL None Surface level Intermediate Deep level
PERSPECTIVE level
GLOBAL IDENTITY Maintain self Define differences Redeline self Integrate
SELF sulficiency
OTHERS Acknowledge Explore Conlrol Leverage
diversity
activities on account of its surface level competition likely to take place in the
global perspective. The controller has big emerging markets of Brazil. China,
more knowledge of the global environ- and India, MNCs will no longer be able
ment as well as considerably more skills to consider these as new markets for
about the international marketplace. existing products. In short, MNCs will
The controller, however, has a limited have to discard their "imperialist mind-
global mindset, and consequently it has set" (Prahalad & Lieberthal. 1998. p.
an ethnocentric-efficiency orientation in 69), so as to adapt, design, manufacture,
its international operations. The con- and market products that suit the unique
troller has an intermediate level global requirements of these markets. The
perspective. The integrator, we suggest, mindsets of defenders, explorers, and
has a well developed and a deep level controllers will simply not be able to
global perspective. The integrator has a assess, understand, and react to the new
true global mindset with the appropriate global realities. It is only the integrators
level of knowledge and skills. who have developed the mindset, skills,
In facing global competitiveness, the and knowledge to be dynamic and ef-
explorer is the least effective, the con- fective players in the global arena. Our
troller is somewhat more effective, and argument is that the global mindset is an
the integrator is the most effective. We evolutionary process. Some managers
suggest that a given mindset is associ- and organizations remain at an early
ated with a particular world view and
stage of the evolution, and progress to
perspective, and with a specific type of
the level of a defender, explorer, or
strategy. For mindsets and strategies to
controller. Other managers and organi-
change, appropriate training efforts
zations evolve quickly through the var-
have to be made to move it from one
ious stages, or move effortlessly to
mindset to another. Table 2 provides an
mindset o'i integrators. We contend that
overview of the four mindsets within a
global perspective. integrators have the required mindset,
Readers may be concerned over our capability, and fiexibility to adapt and
advocacy of the integrator mindset as manage in today's complex global en-
being appropriate and relevant in to- vironment. Having any of the other
day's complex global reality. With three mindsets implies both limitations
GLOBAL COUNTRY/
BUSINESS INTEGRATION REGIONAL
MANAGER Perspective MANAGER
Views
Capabilities