Global Leadership: Competencies, Mindset, and Effectiveness

Introduction

Although the process of globalization began in antiquity, it has greatly accelerated in recent years to the point where the marketplace is increasingly globalized and economic downturns in one country can have profoundly severe rippling effects around the world. Moreover, innovations in transportation and communications have created an environment in which products and services must appeal to a far larger audience than in the past, yet many organizations are failing to respond to these changes in timely and appropriate ways. Against this backdrop, it is clear that more effective global leadership is needed by both the private and public sectors.

The purpose of this paper is to provide a review of the relevant literature to define and thoroughly explain global leadership, along with an analysis of the importance of competencies in the context of global leaders. In addition, the paper provides a definition and critique of the role of a global mindset in relation to the global competency inventory. Finally, a summary of the research and important findings concerning global leadership issues is presented in the conclusion.

Defining Global Leadership

Strictly applied, the term "global leadership" suggests that someone has been tasked with leading an entire globe, but this eventuality has not yet been inflicted on humankind in the modern era. Although there is no universally agreed-upon definition, Tardiff (2017) provides several examples drawn from the scholarly literature to define global leadership today. Some of the most relevant definitions of global leadership provided by Tardiff (2017) include the following:

Taken together, these definitions provide a useful framework for better understanding the main characteristics of modern global leadership in a rapidly changing world. For example, according to Javidan, Bullough, and Dibble (2016), "Gaining such an understanding is critical because not all individuals are equally strong in all global mindset characteristics. Individual leaders rarely encompass all the qualities required for effective leadership in a global context" (p. 59). While it is reasonable to suggest that the increasingly globalized marketplace will experience significant changes over the next several decades, these definitions of global leadership will likely remain relevant and appropriate.

Having established what global leadership is, it is also important to determine what effective global leaders actually do that sets them apart from their less qualified counterparts. A study by Caligiuri (2006, p. 220) determined that there are ten main tasks routinely performed by global leaders:

The key similarity among these tasks is that global leaders routinely deal with people from other countries, and in some cases they should also be able to speak the language or languages of those countries. While English has assumed a near lingua franca status in international commerce (as well as being the universal language of international aviation), the most effective global leaders are increasingly regarded as those who are able to speak two or more languages. Because all leaders and their situations are unique in some fashion, global leaders may or may not perform all or even most of the above-listed tasks. In order for them to be effective at those they do perform, however, they need a set of core competencies that exemplify effective global leaders — issues discussed further below.

Core Competencies of Effective Global Leaders

Given the vastness of a global context and the fact that few if any leaders possess all of the multiple competencies needed for universal effectiveness, it is essential to identify those core global leadership competencies regarded as most important. In response to this need and the corresponding increase in international commerce in recent years, there has been a growing body of scholarship focused on this identification. Although methodologies vary, one of the most common approaches to identifying the most important competencies for global leaders has been to study them directly and gather first-hand empirical observations through in-depth interviews (Jordans, Ng'weno & Spencer-Oatey, 2020).

Research in this area has identified more than 150 different competencies associated with effective global leadership — some authorities maintain there are even more — but this large number is unwieldy for analysis at the individual level. Jordans and her associates (2020) analyzed the research to date and grouped the main competencies of effective global leaders into three main categories, as set forth in Table 1 below.

Table 1: Core Competencies of Effective Global Leaders

Managing Self: Inquisitiveness, Global mindset, Flexibility, Character, Resilience

Managing People and Relationships: Valuing people, Cross-cultural communications, Interpersonal skills, Teaming skills, Empowering others

Business and Organizational Acumen: Vision and strategic thinking, Leading change, Business savvy, Organizational savvy, Managing communities

It is noteworthy that virtually all of the above-listed core competencies are also characteristic of local, regional, or national leaders. Even a "global mindset" and "cross-cultural communications" are critically important for companies of all sizes and types seeking to achieve and sustain a competitive advantage in demographically diverse societies. The competencies in Table 1 nevertheless underscore the wide range of attributes generally viewed as necessary for exemplary global leaders.

It is also important to note that one set of competencies effective in one situation may not be as effective in others, but there are some general traits and competencies that can be used to evaluate the potential for leaders to excel in a global environment. The results of a recent study by Knoll and Sternad (2021) identified a number of additional traits and competencies predictive of global leadership potential. As they report, "Several traits (integrity and resilience), attitudes (learning orientation, motivation to lead, change orientation, drive for results, customer orientation and a global mindset) and competencies (cognitive complexity and intercultural, interpersonal, leadership, learning, change and business competencies) are associated with global leadership potential" (p. 254).

Conclusion

The research showed that while there is no universally agreed-upon definition of global leadership, most authorities agree that it involves the leadership of multinational organizations across diverse cultural, political, and institutional contexts. In addition, the research demonstrated that there are a number of different core competencies associated with effective global leadership, most especially a thorough understanding of the cross-cultural differences involved. Indeed, some leadership attributes that are highly prized in some countries — such as charisma or assertiveness — may be viewed as hubris or mere affectation in others.

Finally, the research was consistent in showing that, properly applied, humor can positively impact global leadership outcomes, and that a global mindset is absolutely essential to effective global leadership. These findings collectively underscore the complexity of leading across borders and the importance of developing both technical and interpersonal competencies to do so effectively.

References

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Knoll, C., & Sternad, D. (2021). Identifying global leadership potential. Journal of Management Development, 40(4), 253–272.

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