Leadership Change in Globalized Context - Coursework Example

Leadership Change in Globalized Context Name Institutional Affiliation Instructor’s Name Date Abstract Leadership has its roots in the commencement of civilization. The Greek heroes, biblical patriarchs and Egyptian rulers all have the aspect of leadership in common. Leadership development is a process that requires leaders to develop emotional resonance with other people. Due to the growing acknowledgment that leadership does not only involve the development of individual leaders, there is need to focus on the various contexts in which effective leadership is developed at the same time considering the best ways in which leadership competencies can be balanced with life issues. This essay argues that, while globalization has created business opportunities, managing its impacts within organisations has not been easy. It requires effective and persistent leadership sustain the performance of the organisation. The paper commences with the introduction and definition of key words- globalization and leadership-, and then discussion of the elements of an effective leader, principles of successful leadership development within the globalized context. The essay ends by giving the conclusion alongside my views and recommendations about leadership in globalized environment. Introduction With the advent of globalization leaders have been forced to devise new means of thinking about leadership and its development. Traditional business models are ever changing as globalization spreads. Convergence is becoming a common phenomenon as competitors assume the roles of suppliers and consumers. The boundaries of the industry are rapidly disappearing, while the global enterprises emerge fast. Often unanticipated and uncharted global shifts are experienced regularly within organisations, thus making difficult for leaders to guide their organisations towards creation f value to their customers, investors, employees and partners. In complex global environment, there is no specific model that fits the wide range of situations encountered by leaders. Therefore, leaders are expected to use their leadership and management skills appropriately to deal with the challenges that arise in order to move their respective organizations from one state to another. Definition of terms The term globalization refers to the process of eliminating barriers to communication, trade and cultural exchange. From an economic perspective, it refers to the move to the move to an integrated and interdependent world economy. On the other hand, leadership refers to the ability of an individual (leader) to use personal power to influence or win the minds and hearts of people to work as one entity towards the achievement of a common goal. Sound leadership is necessary when implementing change within a globalized environment because the process involves dealing with the problems that faces the organization. According to Roger (2003), management of change in globalized environment requires a leader to be plan, organise, direct and control all steps taken. The effectiveness of managing change is determined by the existing structures of leadership. For an organisation to realize success in global context, it requires visionary leadership as well as shared values which are compatible with the strategy and vision of implementing change (Dalglish & Miller, 2010). There are advantages and disadvantages of globalisation. The levels of change in leadership profiles from the past tom present and to the future have interesting repercussions for development of leadership, with both emerging trend s and consistent themes. Qualities of effective leadership such as communication of shared vision, focusing on results, ensuring customer satisfaction and demonstrating integrity will never change regardless of the context. However, the following factors have emerged as more essential for successful management of the organisation in the future. a) Thinking globally- leaders need to understand cultural, economic, political and legal ramifications. Leaders will need to view themselves as the citizens of the world with expanded values and visions. Leaders in globalized context are expected to learn proper ways of managing global production, sales and marketing teams in order to realize competitive advantage. To achieve this, the global leader is required to understand and lead across global regions. b) Appreciation of cultural diversity- in a global context, there is an interaction of people from different cultures. The difference ranges from behaviour to religions. Therefore, organisational leaders should appreciate the differences and promote mutual relationship within the organisation. The ability of a leader to motivate people from different cultural backgrounds is a valuable resource to the organisation. Leadership in global environment requires motivational strategies that work effectively across cultures. c) Building alliances and business partnerships- one characteristic of leadership in the global world is the formation of alliance. The trend is expected to increase in the future. Restructuring, downsizing and reengineering of organisations are resulting to a world where outsourcing of brand-related activities is becoming a norm. The ability of a leader to negotiate and manage complex alliances and relationship networks is key factor for the success of the organisation. Joint leadership of unexploited business ventures is vital is important for global business. Developing and operating under new and changing social architectures implies that tomorrow’s leaders will operate inside of alliances, ventures and partnerships like never before. I the future, leadership will require teams of leaders who are collaborative and posses the skills necessary for effective global leadership. Changing role of suppliers, customers and business partners have implications for leadership. d) Developing technological savvy- technology is the major component of the global world. It is forms the basis for effective communication across the world. Storey and Palgrave Connect (2014) argues that technological change in an organisation occurs in various ways such as innovation in products, modes of communication as well as planning and management. Although most leaders may not be responsible for technology systems in their organisations, they need to understand how to apply the technology in their strategy of the organisation and lead the entire organisation in using it. If the organisation is planning to introduce electronic commerce, effective leadership is very important. e) Well-developed emotional intelligence- the leader must be able to understand himself and other people, exercise self-control and respond to the needs of other people in the most appropriate ways are key elements for the success of the organisation. They should be able to use their personal power rather than the powers vested by the authorities or their positions. Emotional intelligence helps in identification and promotion of shared values that sustain the organisation’s vision and mission. It should also empower and inspire people. f) Animating principle- this refers to the yearning for a meaningful sense in what one does. Leadership is like any other type of work. Therefore, leaders should seek purpose and meaning in their work. As soon as leaders discover their purpose and meaning, they will buy into the mission of the organisation and pledge to fulfil it. In the modern society, leadership is not about making money only but to create meaning in order to win the people’s souls. g) Effective leadership requires intellectual ability to perceive information- the strategies of an organisation can fail when changes occur rapidly. Leaders should be able to understand and reason with information, forecast the future, solve problems, make judgments and make appropriate decisions. A leader with these abilities can win people’s minds easily because of the shared values and strategies for working towards the achievement of common goals. h) Sharing leadership- due to globalization, this aspect is becoming a requirement but not an optional element for leaders. The chief executive officers for the organisations are no longer the exclusive decision makers. Instead, they are forced to cultivate global environment in which other leaders who have common purpose and vision contribute to effective decision making. Unlike in the past, leadership in global world strive for integration and not control, hence paving way for the very foundations of international networks for the organisation. i) Ability to communicate effectively. Communication is the main pillar of the organisation. It involves using and responding to the emotions through body language and other ways like writing listening and speaking. The choice of the communication style determines how the intended message is conveyed to the audience and the responses will impact on the global performance of the organisation. Globalization presents incredible opportunities alongside escalating complexity for organisations worldwide. Managing dispersed teams, navigating complex networks, and constantan implementation of a global strategy of an organisation is a challenge. For an effective execution of the global company strategy and navigation of a globalized environment, consistent leadership is necessary. Despite increased investments on leadership development in the recent years, multinational organizations must move beyond long-established approach of leadership. More organisations are constantly discovering the value of employing consistent and quality leadership on a global basis. As the globalization pace increase, the global leadership development will gain more significance than ever in its role of promoting the success of an organization. Developing capability in a globalized environment is a challenge to the leadership of an organization. Despite the global strategic focus, traditional leadership approaches has proved insufficient for the present global environment. Studies reveal that less than twenty percent of all development programs and corporate learning have impacts on job performance. The challenge is furthermore compounded when leadership development is being deployed globally. Many organizations are leverage programs which are applied randomly across different geographies. This approach divides scattered organisations by creating incoherent leadership. In a globalized environment, leadership initiatives like talent development and building of basic skills should be encouraged so as to move forward the organization’s agendas in an effective manner. The inability to hastily scale leadership talents across the global arena is not only a great obstacle to execution of strategy but also an opportunity missed. Technological innovations prompted early international expansions which disclosed that very few organisations have managed to clearly define their global objectives. Leaders who grew up with technology perceive it as an incorporated part of their lives. In the global world, leaders see technological savvy as an important tool for operations and staff people and not necessarily for them. The move by organizations to develop alliances with the international markets has led to the formation of new hierarchical leadership structures. In the 21st century, globalization is a common phenomenon facing organizations. Organisations are shifting their focus to the needs of the individuals. Leaders are taking the initiative of adapting to the needs of the individuals rather than expecting them to adapt to the organization’s needs (Gundling et al., 2011). A failure by a technology organisation to constantly carry out scaling of talents across its local and global regions may trigger the fall of the organisation. Decreasing product relevance, market shifts and the ever increasing complexity of organisations necessitates rapid development of leadership capabilities for execution of strategic alignment. Initially, leaders (managers) in large organizations had simple goals for themselves as well as their organizations. They could achieve the goals easily by making simple modifications on the strategy of their organizations. Today, leaders need to be specific in their objectives, develop a clear vision of the future and craft the strategies to make their visions a reality by ensuring that everyone within the organisation mobilizes their efforts towards common goals Bergfeld, 2009). However, leaders are currently faced with the challenge of ensuring that all people within the organisation can smoothly adapt to change brought forth by globalisation. The inability of leaders to envisage the current and the future position of the organization in regard to the global market is also a problem (John, 2004). The important element of leadership in a globalized environment is the ability of the leader to facilitate a smooth transition from the old styles of leadership to modern forms through effective decision making and communication. A transformational leader is one who can help other members within the globalized context to understand the significance of change both intellectually and emotionally through the use of transformational models of leadership (Marquardt & Berger, 2000). Deployment of global leadership development is an important factor for achieving organisational success. The development of a uniform global leadership is necessary if the challenges of the present globalized environment are to be addressed satisfactorily (Cheese, et al., 2008). This is a reality that is common for any high-performing organisation. However, a set of unique challenges are set to occur in the process of implementing global leadership. This is because each geographical location has unique and distinct nuances and cultural norms. Therefore, not all approaches of leadership work well with the audiences and that the dispersed locations prevent effective alignment and coordination. Principles for successful leadership development in a globalized environment a) Engagement of key stakeholders- all stakeholders across different regions should be involved in the deployment and development of procedures so as to help in creating a global alignment around leadership. b) Linking the leadership initiatives to the organisation’s enterprise-wide strategy- development of basic skills of leadership talents should be incorporated into the objectives of the corporation. Regional objectives and individual business units should be compared and used to develop strong capabilities for driving the strategic execution. c) Recognition that leadership development is a process- it should be acknowledged that leaders are not developed in a one- time event. It takes time, effort and resources for a one to achieve organizational success. d) Focusing on continuous improvement – this can be achieved through measurement of performance and keeping track record of the return investments. e) By leveraging high-impact learning modality- experimental learning approach that constantly work across different cultures should be used alongside business simulations. Customization of learning allows deployment of leadership within the organization at the same time giving room for localization as required. Globalization combined with political, economic and regulatory uncertainties, and an irresistible flow of information and data which leads to new demands for the modern organizations. To sustain competitive advantage and drive growth, organisations are systematically increasing their investments in leadership development and deployment of global leadership programs and initiatives across diverse sectors of the industry. Decisions involving leadership are sometimes hard to make. Effective communication is necessary to facilitate smooth flow of information and avoid misunderstandings (Hickman, 2010). Unilever is a large company providing consumer goods globally. Six years ago, the company shifted from localized leadership approach to a more sustained, centralized and globalized leadership approach for all regions. Carmel Botwright, the head of learning at Unilever UK states that it reached a point where the management of the company became less clear about their objectives, performance standards and the aspired behaviour. Therefore, the company was relaxed to give hard messages to non-performers. This was not realized until the results of the company implied that change was to be embraced by all means. After the transformation of talent development approach to leadership, all managers of the company from all the geographical branches share a common language. That is, they understand the strategy of the company and have put in place measures that help them coordinate and execute strategic initiatives across the world. Unilever CEO Paul Polman states that it is critical for executives to prioritize the common good but not their narrow needs. His style of leadership is admirable in that he says that he would like to leave a good legacy to be remembered for ages by leaving a place better than he found it. The distinct challenges of global organisations call for a better means of developing leadership capabilities across geographies. Applying the Principles for successful leadership development in a globalized environment will ensure that success increase dramatically. The benefits apparent since the shift from tradition approaches to global leadership development sustains quality across regions by delivering cost savings through management of a single partner rather than networks of leadership suppliers. It also ensures delivery of stronger ad consistent leadership (Mills, 2007). The above dimensions of leadership should be reflected in an effective leadership within a globalized context. Numerous models of leadership within globalize environments have been created. However, an integrative model must give sufficient explanation of the following requirements of an effective practice of leadership; Vision, strategy, values, inspiration, motivation and empowerment. Effective behavioural and emotional leadership without compelling strategic thinking and vision can be dangerous. Leadership in within a globalized context must exhibit the following elements. Vision Basically, vision implies the ability to vividly see something through imagination. In other words, it is the foresight of the desired future. Leadership in a globalized environment should be founded on well-defined vision of the future. It should be appealing so as to form the basis for directing the intended change within the organisation. Values They are principles held dearly in the hearts of people. They can be personal (intrinsic) or corporate (extrinsic). The role of values is to guide personal behaviours within the organisation. A strong organisational culture is characterized by shared values and effective leadership. Strategies These are means of pursuing the organisation’s mission and vision. Vision cannot be realized if there are no strategies for achieving it. Effective leadership in globalized environment requires development, commitment to and implementation of rational business strategies depending on the possible occurrences for the organisation. Empowerment In a globalized environment, leadership entails giving people power to perform what is necessary in the change process. It involves dissemination knowledge opportunities, skills, self-confidence, freedom as well as the resources need to manage issues affecting them and the entire organisation. The essential elements of empowerment are stimulating people’s imaginations an intellect, specifically their level of creativity in the time of change. Empowerment process involves getting rid of barriers to change, eradicating or changing leadership structures or that prevents effective leadership and governance within a globalized setting. The aptitude for personal leadership resulting from intensive self-awareness from inside enables people to exercise their creativity in a competitive environment. Conclusion In my view, no one leader can be perfect in the way of leadership given the challenges resulting from globalization. This leads to the conclusion that shared or rather distributed leadership across a group of leaders would be the best way for organisations to carry out business in the future. Few organisations have created talent management procedures to support leadership in globalized environment. However, I would recommend that leaders at organisational levels should work together with policy makers to draft policies that offer support for shared leadership so as create and nurture team-based leadership which can meet the demand in the global world. Moreover, future leaders must keep the same pace as globalization, particularly the technological changes. They should also acquire the essential skills needed to lead the organisation to competitive levels both nationally and internationally. Effective leadership is one that is not only founded on the vision and mission statements of the organisation but the ability of the leader to manage change and formulate strategies for pursuing the opportunities offered by globalization. References Bergfeld, M.-M. H. (2009). Global innovation leadership: The strategic development of worldwide innovation competence. Norderstedt: Books on Demand. Cheese, P., Thomas, R. J., & Craig, E. (2008). The talent powered organization: Strategies for globalization, talent management and high performance. London: Kogan Page. Dalglish, C., & Miller, P. (2010). Leadership: Understanding its global impact (1st ed.). Tilde University Press. Gundling, E., Hogan, T., & Cvitkovich, K. (2011). What is global leadership?: 10 key behaviors that define great global leaders. Boston, MA: Intercultural Press/Nicholas Brealey Pub. Hickman, G. R. (2010). Leading change in multiple contexts: Concepts and practices in organizational, community, political, social, and global change settings. Los Angeles: SAGE. John, J., (2004). 10 Principles of Change Management. Booz &Company Inc. Marquardt, M. J., & Berger, N. O. (2000). Global leaders for the twenty first century. Albany, NY: State University of New York Press. Mills, A. J. (2007). Organizational behaviour in a global context. Peterborough, Ont: Broadview Press. Roger G., (2003). Change Management- or change leadership? Journal of Change Management. Vol.3,4, 307-318. Henry Stewart Publications. Storey, S., & Palgrave Connect (Online service). (2014). The impact of diversity on global leadership performance: LEAD2. Read More