Division of Research School of Business Administration Draft B, May 7, 1991 GLOBAL HUMAN RESOURCE MANAGEMENT GLOBAL DEVELOPMENT Working Paper #667 Noel Tichy The University of Michigan Confidential Draft Do not duplicate without author's permission FOR DISCUSSION PURPOSES ONLY None of this material is to be quoted or reproduced without the expressed permission of the Division of Research Copyright 1991 The University of Michigan School of Business Administration Ann Arbor, Michigan 48109-1234

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Global Develop.ent, P. 2 A FRAMEWORK FOR GLOBAL DEVELOPMENT If organizations and their leadership are required to play at intense "Olympian" levels, then traditional training and development cannot be the vehicle to prepare for quantum human system change. In a world where time-based competitiveness calls for very deep, multi-dimensional, people development approaches, the core concept for effective global development is "compressed action learning". Compressed Action Learning Human Resource professionals face the same challenges as the companies they are serving. Cycle times must come down on everything -- developing products, responsiveness, customer service -- at the same time that higher quality and greaterimpact services and products are provided. Compressed action learning is a vehicle for people development. It occurs with much shorter cycle times than traditional approaches to learning, while simultaneously having higher impact and higher quality developmental interventions. It is frame-breaking. Development in the new era must be seen simultaneously as an individual transformation lever and an organizational transformation lever. This requires a new framework: blending management development with organization development. Organization development has traditionally focused on cultural change at the group and systems level whereas management

T Global Development, P. 3 development has given attention (primarily cognitive) to skill development. One of the major problems with management development has been the difficulty of transferring learning when individuals go off site, acquire new mindsets and skills, and then return to the same social system where the new ideas have little or no impact. The problem with organization development has been one of scale. Customized workshops and processes have been able to create some powerful social technology for change, but in large organizations they have had little impact. Thus, there are deep challenges in combining economies of scale and development impact. These are only heightened by the need for faster and faster cycle times. How can individual and organizational transformation be managed effectively in such circumstances? Exhibit I lays out the Tichy Development Matrix. It shows the core dimensions necessary for reframing the development challenges in the 1990s. This exhibit deals with the depth of the intervention. As interventions become deeper, they move from a focus on developing (1) awareness (2) cognitive and conceptual understanding to (3) actual skills to (4) new problem solving approaches and ultimately to (5) fundamental change. The level of risk goes up at each stage. More time is required to make the deeper intervention happen. A simple analogy helps to clarify the process. The development of musical ability is a useful metaphor. To train someone in music, a reasonable first step might be

The Tichy Development Model J Depth of Change *;,,.................... I......................~.,,,.... Deep -. High Rik -wLong Time -., --- --- -- - -- -' Superical -- Low RIk - Little Time Developing Fundamental Change Developing New Problem-Solving Approaches Developing Skills Developing Cognalive Underssanding Developing Awareness m x c: P-4 1 — Deep High Risk 4 Long Time Organization Jarget of Change j I Team.! Pair' (k. - - -. - Ia lIil _e 0 0 0~),1 Superficial Low Risk Little Time Individual _" el _

Global Development, P. 4 developing awareness and appreciation, e.g., a music appreciation course. The second step, cognitive understanding, would involve learning how to read music and the third step, developing skills, would involve using concepts to synthesize knowledge and motor activity -- to actually play an instrument. The fourth step, new problem solving approaches, would require adding skills: transposing music to change the score and then altering the repertoire of skills. The fifth step, at the deepest level, is fundamental change: performing as a composer. It is helpful to apply these five steps to specific management functional skills, e.g., finance, and work through the same logic from awareness to fundamental change. The other dimension in Exhibit I is the focus (or target) of the intervention, with one end of the spectrum being anchored at the individual level and the other at the organizational level. Traditional programs commonly send individuals to either internal management development programs or external business school programs. Occasionally, boss/ subordinate pairs or two colleagues attend programs. Less rare, but still part of the repertoire of traditional development programs, is to send teams and finally, the target is sometimes the total organization. In contrast, the Tichy Development Matrix takes a stance that the challenge is to move as much development toward the upper left portion of the matrix "Fundamental Change of the Organizations".

Global Developrent, P. 5 Traditional Management Development The dominant paradigm in management development has been emerging since World War II (See Exhibit I - lower right hand portion of the Tichy Development Matrix). In business schools, a multi-functional curriculum in finance, marketing, accounting, organization behavior, etc. is taught. Managers and executives attend as "individuals", and most of their development is focused on cognitive awareness and understanding with some skill development. The case method is essentially a cognitive understanding tool and has become a preferred teaching tool. There is minimal skill development in terms of participants actually practicing the art of management. They interact in classrooms discussing hypotheses instead of playing on teams, taking risks, making decisions, and living with the consequences of their actions in real settings. Simulations and role-plays are a very inadequate substitute for real "clinical practice". The same approach and curriculum have dominated the management development programs whether they be at IBM's Armonk facility or Philips's Eindehaven Training Center or Hitachi's Management Development Institute in Japan. There are a number of reasons for this. For example, the methodology is well developed and the faculty who teach in the business schools also tend to dominate the senior management programs in corporations. When we examine the global development experiences available in the

Global Development, P. 6 traditional paradigms, there are those at INSEAD, Harvard, Wharton, Columbia, IMI/IMEDE to name a few of the more esteemed programs. These run from one to six weeks or more, involve a multi-functional curriculum, entail case discussions, group work and projects. Yet it is the individual manager (lower right sector of the matrix) who is then expected to return to his or her organization transformed in some major (preferably global) way. It has become necessary for us to shift the mindset from "training" to "giant workshop". If we reframe the development challenge in the upper left quadrant of the matrix, a new set of steps, tools, and approaches emerge. Development Gets Linked With Reality When management development programs are re-conceptualized as action workshops, real "live" problems, not case studies, command attention. People in the action experience are at real risk and there are tangible organizational goals for transformation that are linked to the development activities. Add globalization to the agenda. Then the model for successful compressed action learning becomes clear: intense cross-cultural problem solving requiring multi-cultural teams, a faculty that is trans-cultural as well as multi-lingual, and breaking free of the classroom into real cross-cultural settings. Only when these cross-cultural teams of executives are required to deliver with

Global Development, P. 7 real stakes and real risks involved, can there can be a quantum development breakthrough. The Outward Bound Metaphor The core of compressed action learning is a lesson learned years ago by the Outward Bound school. This school grew up in World War II as a way to train seamen in England to survive when the U-Boats sank their ships. The amazing finding in World War II was that it was the older seamen that were out-surviving the more fit and healthy younger ones. The conclusion was it had more to do with mindset, self-esteem and teamwork than brute, physical strength as to whether one survived or not. Thus, the Outward Bound schools focused from day one on enhancement of self-esteem and team work. It has since become a vehicle for vastly diverse populations working these agendas. It provides a good example of compressed action learning. Breakthroughs in Outward Bound occur because people are put at their boundaries -- both individually and as teams. They perceive real risk whether it be in a rock climbing exercise or a sailing activity off the coast of Maine with strong winds blowing and the rocky shore nearby. In order to successfully accomplish what Outward Bound calls an "initiative", usually a team task, teams must work effectively together and individuals must exhibit personal leadership and a selfconfidence. A core attribute of Outward Bound is that it creates the illusion of great risk. It is more illusion than reality and it

Global DeveloDment, P. is done by careful stage-setting and putting people in a context in which they emotionally, physically and intellectually feel they are at their boundaries. For example; taking a desk-bound executive and training him for forty-five minutes in rock climbing techniques and then putting him on a sheer, 100 ft. granite cliff for his first rappel down and then having him climb back up the cliff, is an absolute emotional breakthrough experience. The executive quickly is caught up in the experience and does not perceive that there is a great deal of safety built into the situation. Instead, he pushes at his boundaries and half-way up the cliff confronts his own sense of risk taking. Logically, he has not perceived the existence of the safety rope that is attached to him and the helmet he is wearing. The perception is that if I slip I could go all the way down to the bottom of this cliff. The same illusion is created after teaching executives for 30 minutes how to sail a 30 ft. pulling boat. They are given the challenge of sailing to a harbor five miles away along the rocky coast of Maine with no experienced sailors. They quickly lose the perception that there is a trained Outward Bound instructor sitting there on the boat ready to intervene if they face true life-threatening danger. By putting this kind of pressure on the teams they confront their own abilities of planning, decision-making, leadership and conflict resolution. The compressed, rapid cycle of these team activities gives the team an opportunity to push its boundaries far beyond anything that happens sitting in a case breakout room

Global Development, P. 9 discussing the international business case of corporation X, Y, or Z. In global development, instead of simple physical Outward Bound activities, we replace the team activities with such complex challenges as doing a country business opportunity assessment that will actually have an impact on their company's investment strategy and which will be reviewed by the CEO. In other global development programs teams work on global strategic issues necessary for the business; long term global success. The teams' ability to solve these issues will not only have an impact on the business but the participants perceive that it will impact their careers. The compressed action learning calls into play their cognitive understanding, multiple business leadership skills, new approaches, and sets the stage for fundamentally changing the way they work on both the "hard" business and the "soft" people issues. Blending the "Hard" and the "Soft" Issues Compressed action learning deals with another paradox, namely; that of impacting both the "hard" and the "soft" developmental issues. Exhibit II captures the challenge particularly for U.S. corporations as they face the decade of the '90s. "Hard" issues refer to budget, manufacturing, marketing, distribution, head count, finances, etc., whereas the "soft" issues refer to values, culture, vision, leadership style, innovative behavior, etc..

Transformational Leadership in the 1990s Cr - -- -- — ~- ----- 1990s GLOBAL TRANSFORMATIONAL LEADERSHIP: Paradox of Top Line/Bottom Line Growth Organizational Issues Hard Soft Weak a *n 0 -0 _J Strong (Drives Boftom Line) (Drives Top Line) Noel M. Tichy The University of Michigan

Global Development, P. 10 Exhibit II implies that for large portions of the U.S. economy, companies were weak on both the "hard" and "soft" issues from WWII up until 1980. Examples are the auto industry which was dominated oligopolistically by three competitors who had no global competition to speak of, consumer electronics dominated by domestic players like GE and RCA, a steel industry, etc.. It wasn't until 1980 that most of these industries began to wake up to the fact that there were real international competitors out there who were faster, producing cheaper, better quality products. Thus, we saw the decade of the '80s as getting strong on the "hard" issues. Companies such as GE moved out very early in the game, downsizing by over 120,000 employees, trimming their portfolio, restructuring and dramatically improving productivity. This scenario was followed in company after company as entire industries moved to restructure in the 1980s: automotive, steel, and toward the end of the decade, the computer industry. The long term challenge, however, is getting strong on the "soft" issues because it is the "soft" issues (cultures of innovation, risk-taking, etc.) that create the conditions for new products and innovation. The global winners will paradoxically manage the "hard" and the "soft" -- the "hard" helping drive lowest cost producer, the "soft" driving most innovative. Thus, in industries such as autos, Honda sets the standard. It is used by most auto companies as the bench mark because it tends to be lowest cost and most innovative simultaneously. The Honda culture embraces the "hard/soft paradox."

Global Development, P. 11 Global development requires simultaneously working on real "hard" business issues and the "soft" issues. Traditional training often runs "soft" courses on cross-cultural awareness, interpersonal skills, team activities, devoid of "hard" issues. Whereas with compressed action learning, people are working on real strategic business problems and simultaneously improving their team skills cross-culturally. It is this layering of multiple training and development agendas into a highly compressed environment that is the guts of the global development challenge for the 1990s. The remainder of this article lays out specific examples of what is possible by taking this approach. It ends with a set of prescriptions for both the CEO and the human resource organization to drive global development into the 21st century. GE'S GLOBAL DEVELOPMENT STRATEGY: CROTONVILLTE General Electric's management development operation headquartered at Crotonville, New York, provides formal development experiences for GE professionals and managers worldwide. Approximately five thousand per year come to Crotonville's 53 acre campus which has a 145-bed residential educational center. In the mid 1980s Crotonville changed its mission to focus on global development. The new objective became: To leverage GE's global competitiveness as an instrument of cultural change, by improving the business acumen, leadership abilities and organizational effectiveness of General Electric professionals.

Global Development, P. 12 Crotonville is used both as a transformational lever for GE, as well as an individual leadership development tool. Therefore, many of the premises that guided John F. Welch's (GE's CEO) actions in the 1980s have generalized applicability to transnational companies around the world. The GE case illustrates how the training and development infrastructure of many large companies can be used to bring about much more compressed, higher impact change than currently experienced. Such global change will require their CEO's having a new mindset, similar to the one which Jack Welch has developed. He sees winning globally as requiring continuous employee development at all levels so that GE has a culture where the need for speed, continuous experimentation, and action is a reality. One of the fundamental premises guiding the transformation of Crotonville, during the 1980s, was that revolutionaries do not rely solely on the chain of command to bring about quantum change. They carefully develop multi-channel, two-way, interactive networks throughout the organization: a) The chain of command with its vested interest is where much of the resistance to change resides. Therefore, there is need to stir up the populace of the organization, begin developing new leaders for the new regime. b) There's a need for a new set of values and templates in the organization. c) There's a need for mechanisms to implement all these changes. Therefore, new socialization and new development processes are required.

Global Development, p. 13 Jack Welch perceives himself to be the leader of a major cultural revolution at GE. He has been looking for ways to best utilize GE's Crotonville resources. The Crotonville Transformation Historically at Crotonville, as is true of most university business schools, the primary focus was on the individual participant's cognitive understanding. The shift in the Crotonville mindset has been from a training mentality to a workshop mentality, ultimately leading to totally new program designs. It has resulted in an increasing number of teams attending sessions whenever possible. Also increasingly, participants bring real business problems and leave with action plans. Leadership behaviors are rated by participants' direct reports, peers, and boss before going to Crotonville. The aim is for changes in leadership behavior to be linked back to the work setting. Other action learning tools include having executives consult to real GE businesses on unresolved strategic issues. Teams spend up to a week in the field consulting with these businesses. In addition, members of the CEO and officers come to Crotonville to conduct workshops on key GE strategic challenges. Along the way, participants find the development experiences increasingly unsettling and emotionally charged. They feel uncomfortable with the feedback from their back-home organization. They wrestle with very difficult, unresolved, real

Global Development, P. 14 life problems. They make presentations to senior executives, argue among themselves, and work through intensive team-building experiences which include a good deal of "Outward Bound" activity. The measure of program success shifts from participants' evaluation of how good they felt about the learning experience to how the experience has impacted their organizations and their own leadership behavior over time. In order for the Crotonville program to deliver on its new global mission in the 1980s, the total curriculum was revamped to provide targeted "core development" experience at key career transition points for people at all levels -- from new professional hires up through the top officers. Exhibit III shows the Crotonville core development sequence. A CORPORATE MODEL FOR IN-HOUSE GLOBAL TRANSFORMATION AND DEVELOPMENT GE provides many examples of what can be done through a large scale corporate development effort. This section will highlight some specific examples to illustrate what large transnational companies with significant development infrastructures such as GE, IBM, AT&T, Shell, Unilever, Ciba Geigy, Hitachi, Matsushista and Nomura Securities can do with "compressed action learning".

_....Core Development Sequence CEO IL 1Developn'ment Stage V: Officers' W'orksthops Devcloprmect S.tage IV: CXCI uive IrVC Pogr.ns [DC _ I~BB- D~LBMC MDC DeCV(I:o()prTifl( Sltat;e III: Advnll(d efuiir tionl Cotjurc E,11-1a11 irnjCrII I Il o Maf.3ion Ikcllig; Rtlilimons Tccht'ncology Dcv elopment Stage 11: New NMJn.lger Developmentr Course _~~BHHH&l~ DvDevelopment Stage 1: Corporate Entry Lecadership Conference I & II I ~ ~ ~. /' D L j - -- --

Global Development, P. 15 Transformational Workshops Beginning in the early part of 1987, a series of five-day workshops were held for teams of managers from different GE businesses to work on global transformational problems. The first of these workshops was held at Gotenba at the foot of Mt. Fuji in Japan. It was a five-day workshop for teams to work on specific transformational agendas as they simultaneously worked on their own global development. At this workshop were teams from GE's CALMA business, Consumer Electronics, Power Systems, GE Medical Systems, and Plastics. The majority of the participants were Japanese. There were also managers from Korea, China and the United States. Similar workshops were run in the United States in the following years. These were coordinated and sponsored by Crotonville. The goals of the workshop were for teams sponsored by their CEO or Senior Executive with a specific change problem to accomplish the following: 1. Develop a transformation strategy. 2. Develop a high-performing team. 3. Acquire a state-of-the-art input on business strategy, management technology, and implementation planning. 4. Work on transformational leadership capacity. 5. Deliver a actionable transformation product to their sponsor. Examples of the Types of Problems Worked On in these Transformational Workshops are: Integrating and Leading a new process for US/Japan joint venture in the high-tech field.

I Global Development, P. 16 Resolving major inventory control problems, saving millions of dollars a year. Sourcing strategic alliance issues with partners in the US and Korea. Initiating the movement from a traditional work system to a innovative work design strategy for a multi-plan firm. Globalization strategy and market service for a domestically focused service company. Downsizing encompassing the closing of three plants to streamline for global competition. Acquisition strategy worked out for a manufacturing business. Formulating a strategy and implementation process for a new product start-up and roll-out. Exhibit IV lays out the contrast between the transformational workshops and traditional training. Again, the aim is to get higher impact, multiple agendas worked in these five-day experiences. Global Business Management Course One of the four-week Senior Executive Programs at GE, the Business Manager course, has evolved since 1986 into a four-week action learning experience, the core of which is creating fiveto seven-person teams to spend over a week in the field consulting and working on real, unresolved GE strategic problems. These teams have been involved in working on such problems as the transfer of artificial intelligence capability in GE's Research and Development area into the Financial Services organization to

LAn IDII HIOW TIlE TRANSIOIRhIAUTIONAL LEADERSIIIP WORKSIO1 IIPROCESS OPERATEIS:,1Trnnsformlnaionll Le:I dershlip XVo rkslloj) Tratnit io(al Tr:il inin Prework Our faculty works with you and your selected team prior to the workshop. The critical business problem or issue is identified and impactful desired outcomes set. Natural Work Groups Your executives come as a natural work group with the specific task of solving a critical problem or setting a new business direction. Faculty input is leading edge global thinking and is designed to facilitate this work. WYork Team Process The faculty and team work together to link workshop presentations and concepts to your evolving transformational action plan. Ample time is built in for this facilitation process. Action Planning A plan for transformation is worked on and completed during the workshop. There is a high degree of team building during this problem solving process. Individuals and the team deal with the gut wrenching issues involved in transformation. Accountability Because of the strategic nature of the workshop process, all participants arc accountable as actors in the transformational drama. There exists the healthy pressure to arrive at a plan, by the end of the workshop, that'can be presented to the team's sponsor (CEO or key executive). Result The CEO or sponsoring executive joins the workshop team on day five to work with the team on plans for implementation and on commitment of resources to transform the organization. Follow Through A transformational team has been built. It will stay intact to ensure implementation of the action plan. The team members have, through new exposures and commitment development, improved their personal and professional capabilities. Participants come as individuals with little or no preparation or link with other participants. The participants are individuals from companies with widely diverse problems and cultures. Problem solving usually focuses on smaller issues. There is a low level of synergy. Building an action plan is largely left to the individual. There is minimal interaction or work with faculty. Motivation to solve a major puzzle at the workshop is low. Most workshops do not focus on developing implementable action plans or new business directions. They rely on the motivation and willingness of the participant. Often the tough issues of change are not surfaced or dealt with. Because the workshop is not adequately focused, the participants are left to formulate their action plans after retuming to their business or workplace. Colleagues critical to transformation are not up to speed. The participants rturn to work and simply prepare a report to the boss and some colleagues. Where there is an action result. it is transaclional rather than making sweeping global changes required by the business or organization. Participants develop a new network, but often the contacts are passive. The participant is involved in social and professional interactions, but any groups formed during the workshop are temporary. Follow through is usually low.

Global Development, P. 17 joint venture considerations between Construction Equipment business and Fuji Electric in Japan to NBC's global strategy in Europe. By 1989 the focus has shifted to even a greater global challenge. The action learning focused on sending teams to China, the Soviet Union, and India. In each case, the teams had a specific GE problem to work on in these regions but were also collecting intelligence and information on GE best and worst practices in the global arena. The teams immersed themselves in these economies, dealing with geopolitical realities, and ultimately pulling their intelligence together in reports that were presented to top officers (e.g., Paul VanOrden, a member of GE's CEO team and Paulo Fresco, the Senior Vice President in charge of International at GE and his team of country managers). Such an experience results in payoff to the GE operations in China, the Soviet Union, and India. New knowledge is transferred throughout the company via the International organization. Finally, there is a tremendous impact on the teams and their individual members in developing their global capabilities. Globalizing the Executive Development Course The top level program for GE, the month long Executive Development Course, has also shifted to an increasingly global set of experiences. At the end of the '80s, the program has been run partly in the U.S. and partly in Europe focusing on studying

Global Development, P. 18 "Europe - 1992" and the transformations occurring in GE worldwide and in that region. The five-day transformational workshops, the globalized BMC and EDC are illustrative of development experiences possible via a corporate level effort such as GE has. This article looks at how one GE business used global leadership development as a key tool in organizational transformation. The story is exemplary of how other companies can speed up globalization by using compressed action learning. A similar program is underway at Nomura Securities in Japan. THE GLOBAL LEADERSHIP PROGRAM CONSORTIUM This is the most exciting time I've ever been through in my career -- more challenge, more possibility of failure... but more rewards. (GLP Participant, 1989). The Global Leadership Program is a consortium representing leading corporations (Exhibit 5) lists the companies) in Japan, Europe, and the United States along with a global faculty and participating host countries. They are part of an ongoing partnership started in 1988 jointly committed to research and development on issues of globalization. The program design, facilities and support staff are directed by core faculty from universities in the U.S., Europe and Japan. The members of the consortium participate in a research partnership and in the intensive 5-week Global Leadership Program designed for senior executives with CEO

I Global Development, P. 19 potential. The Global Leadership Program Consortium is an ongoing partnership with the following elements: The five-week Global Leadership Program. An ongoing globalization research and development program. A global network of companies and individual sharing best-management practices. Synergy with the MBA program. The only Triad (Japan, U.S., Europe) consortium for high-level executives representing leading global companies to share and develop ideas and applications together. The program is an intensive, multi-national experience designed to expand the global mindset, cross-cultural competency and global networking capability of senior executives. It uses action learning to provide an intellectual, interpersonal and physical international experience. It creates the dynamic, crosscultural, problem solving environment that pushes executives to their ultimate boundaries, thus providing breakthrough leadership experiences. Cross Cultural Compressed Action Learning The Global Leadership Program is built around a country business opportunity assessment in which participant teams travel to different regions in the world to investigate long-term business prospects. At the same time they work on their own cross-cultural understanding and team building.

4 Global Development, P. 20 The program begins long before the actual 5-week session. Participants receive specially prepared briefing materials about the country they will visit in order to provide them with an indepth background for their assessment. The briefing books are divided into two major parts: core readings and supplemental readings. The information is researched and compiled by known experts in the field. It is continually being updated to provide the most current situation for the participants. The participants also receive survey instruments that assess their perceptions regarding the characteristics of a global organization, the dimensions of global leadership, and the way managers carry out their global responsibilities. In addition, other representatives of their organization also receive portions of the survey. The results of the surveys are summarized and the information is addressed during and after the Global Leadership Program. Insights gained from the surveys are an important part of the Global Leadership Program. Overview of the Global Leadership Program Exhibit VI provides an overview of the program. It was first launched in 1989 with a group of 21 executives from Japan, the U.S., Britain, Brazil, and India. In 1990, the second running of the program included 31 participants from Europe, the U.S., and Japan. The core of the program is the two-week, on-site, country assessment carried out by cross-cultural teams in China, India,

vinqi f h. _ r;Z Ql i a i i- i i lU A A i 6 I U W1 ' - ^ d Y EXHIBIT VI 'ITWee\k 1 lWe 2 c cIk 2 \\c Wck Week 5 University of Michigan On-Site Country Visit Univ. of Ml Team Building Country Business Preparation )Opportunity Assessments and Country Business Presentation Assessment Preparation Interviews with of Government Representatives Final Reports Outward Boutnd Business Visits Washington D.C. Visit Rcgional \Visit and Assessment Global Leadership Programn Mission: "To develop global business leaders who have the mindset, leadership and team building skills to both lead their instititutions and contribute to world economic growth." Prlogram Objectives: * Provide a deeper understanding of global geopolitical forces and their relationship to business. * Provide cross-cultural understanding and skill development. * Provide tools and techcniques for carrying out overseas business opportunity assessments. * Provide exposure to the political, social, cultural and economic environment in the host country. * Provide new global business strategics for joint ventures and alliances. * Provide global network building among business leaders, host countries and business academic leaders.

Global Development, P. 21 and Brazil. Each executive team produced investment opportunity and entry strategy recommendations as well as video documentaries as part of their country assessment. As impressive as the products of their work and the real learning was the cross-cultural teamwork. Each team spent two weeks preparing for the country assessment by working on their personal global leadership capabilities, their global mindsets and team skills, which included a weekend at the Outward Bound School at Hurricane Island, Maine, and a two-day assessment in Washington, D.C. Learning to create a high-performing team with senior executives from multiple cultures is one of the keys of leading world-class operations in the 1990s and twenty-first century. The program carefully blends rigorous, intellectual development of global leaders. This includes starting with each individual mapping their own personal global mindset; that is, the way they analytically look at the world politically, economically, and culturally. These global mindsets are then shared and discussed intensively in each team and the team is charged with coming up with one analytic framework to guide their assessment of a major geopolitical region of the world. They're assisted in this process by working with area experts in economics, political science, and business. In addition, they are given intensive briefings through written materials, videos, and several days of work with world experts on the region they will be visiting. While this is going on, there is intensive team

-4 Global Developrent, P. 22 building activity so that each of the teams becomes a highperforming, cross-cultural team. And finally, each individual's own leadership behaviors are examined via surveys filled out by their colleagues and themselves before they attend the program, as well as ongoing feedback from their team members throughout the program. By the second week of the program, teams have been built and they start with their country assessment. The first step in that process is a one-day, intensive set of interviews and discussions in Washington, D.C. with the State Department, International Monetary Fund, Embassies, etc. They then return to the University of Michigan at Ann Arbor and spend the remainder of the week getting prepared for their country assessment. The Country Business Opportunity Assessment During the third and fourth weeks of the program, the participant teams split up and travel to three different countries. The 1989 program visited Brazil, India, and China while the 1990 program visited the USSR, China, India, and Brazil to investigate long-term business prospects as well as continue work on cross-cultural understanding and team building. The primary task of the program is the creation of the highperformance, international team which must work across cultural boundaries to carry out a real business task under pressure of time and in an unfamiliar context. The program assigns working teams of five or six participants to a large, diverse, developing

-. Global Developrent, P. 23 country with which the members are unfamiliar and require them to work together for two weeks as a team to assess the long-term business prospects of the country in question. The assessment focuses on the following four issues: 1. What role will the host country play in the global economy over the next decade? 2. What kinds of business opportunities are best for that economy (e.g. production, sourcing, direct sales of heavy equipment, heavy or light industrial goods, consumer goods) What regions in the host country are best for which kinds of foreign business? 3. What are the best entry strategies for that economy (for example; joint ventures, coproduction, direct sales, equity joint ventures, licensing, counter trade, etc.)? 4. What is the opinion the host country holds of the nationality of the participant? What prejudice might exist, good and bad, for large multinational corporations? How does the host government view the particular corporation doing business? That is, what is the corporate image abroad? 5. What is the global citizenship role regarding physical and human ecology in the country? What role should be played regarding air, water, toxic waste etc., as well as education, health care and poverty? The Process: Compressed Learning In each country one or two teams travel first to the national capitol, focusing on national policy and relations between multi-national corporations and the government. The participants then travel to different regions to assess business conditions and opportunities there. In India, the teams traveled to New Delhi, Bombay, Puri, Bangalore, and Madras. In Brazil,

t S Global Development, P 24 they visited Sao Paulo, Caxias do Sul, San Jose, Brasilia, and Rio de Janeiro. The participants returned to Ann Arbor to write their reports, edit their videos, and make their presentations during the last week of the program. During the last week of the program, the participants write their reports and make their video documentaries and presentations. This process forces them to synthesize and analyze their experiences and information. For the participants, the experience of dealing with real problems and adverse conditions provides a real test of their cross-cultural skills both of the team as a whole and within the team itself. Strong networks between the team members have been created as well as across teams. Starting in 1990, the program began to actively involve MBA students as staff assistants to the teams. This added value to the program but also began the journey of integrating multiple layers of learners in the Global Leadership Program. Over time, a series of global leadership action learning programs will be designed for MBA students, for early professionals and for midlevel managers on up to the current Senior Global Leadership Program. The aim will be to create a portfolio of action learning experiences all of which include international cross-cultural team building and utilize on-site project work in cultures that are unfamiliar to a significant number of the team members.

Global Development, P. 25 The Program Impact The self-evaluations of the participants were extremely positive. Exhibit VII presents quotes from 1989 participants. It was a frame breaking and peak life experience for many as can be seen from the evaluations captured in the quotes. The real measure will unfold over time and will be tracked through research and the ongoing network which has been created. The alumni group will meet regularly and will play a role in preparing next year's participants. In addition, the program has already generated some business relationships among participants and will be a builder of global networks among many of the participating companies. In addition, the host countries and host organizations such as CEI (Confederation of Engineering Industries) the U.S. equivalent of the National Association of Manufacturers are building relationships with companies by helping to develop and coordinate the agenda for participants. CEI has sponsored a delegation of top CEO's from India to visit many of the sponsoring companies in the U.S. The program is spawning business research projects and will be a catalyst to a global research program including research laboratories with Michigan, Tokyo and Brussels. The Global Leadership Program will be building a worldwide research network of business schools working in close cooperation with firms and industries to meet the challenges of the new global playing field.

A -f Global Development, P. 26 CONCLUSION This article has laid out the challenges for global leadership development. It started with an assumption that the geopolitical and competitive landscape of the 1990s is requiring a new breed of leadership at all levels of the organization. We argued that traditional classroom-type training will be insufficient for transforming both organizations and leaders. The Tichy Development Matrix has been used as a strategic concept to shift from individual training to higher impact organizational and team change. The illustrations have included internal corporate level development such as carried out at GE's Crotonville and a consortium of thirty-five U.S., Japanese, and European companies working to develop their senior leaders. The future provides a host of new opportunities for globalization at multiple levels. Programs within companies will miltiply, but business schools and other academic institutions must undertake alternative, new ways of partnering with corporations to rapidly develop the global leaders needed to pilot our institutions into the twenty-first century.