Mendenhall, Osland, Bird, Oddou, Maznevski, 2009

Characterised by a level of instability, complexity, dynamism and inter-connectedness not experienced in the past, the global environment has had a major impact on organisations, their strategies, structure and operation. Leaders of global organisations have had to create new ways of conceptualising and operating in this more complex world. Yet we know little of this new breed of leaders, the nature and capabilities of the people who hold these global positions.

The development of globally competent leaders has been widely recognised as a critical factor in the future success of organisations. Indeed, a shortage of global leaders is an increasing problem for multinational companies (Fortune, 2006).

However, there is a lack of understanding of the different challenges faced by global leaders who deal with greater complexity in the number and type of issues they confront; greater interdependence amongst a larger number of stakeholders; and greater ambiguity and flux in their environments (Lane, 2004) resulting from the cultural, administrative/ political, geographic and economic complexity of operating across national borders (Ghemawat, 2008).

The Need for Research:

With the number of organisations operating globally expanding rapidly, there is an increasing need to understand the capacities and capabilities of global leaders and how best to develop them. Yet the level of knowledge and understanding in organisations is relatively unsophisticated with few organisations recognising the difference between domestic and global leadership or seeing it simply as domestic leadership with the addition of international experience.

In respect of the latter, there is widespread agreement that the most powerful strategy for developing globally competent leaders is through an international assignment, with most organisations believing the high cost involved in providing international work opportunities is a worthwhile investment (Sparrow et al, 2004).

This broad assumption and practice begs a number of important questions:

a) Is an international assignment always successful in developing global leadership competencies?

b) Are some international assignments more successful than others in developing global leadership competencies?

c) What are the competencies and capabilities assignees develop during an international assignment that make them better prepared for a global leadership role?

d) Can organisations construct and manage international assignments so as to accelerate or deepen the development of competencies and capabilities?

e) Do the pre-existing competencies of the individual influence how successful an assignment is in developing their global leadership competence?

f) Do some candidates possess the competence for global leadership without having the experience of an international assignment?

g) Is it possible to develop global competence outside the ‘on the job’ experience of an international assignment?

While we do not know the definitive answers to all questions, research has thrown light on some. For example, there is evidence to suggest that some assignments are more successful at supporting the development of global leadership competencies than others and that employing organisations can help to increase effectiveness. There is also evidence that international experience does not positively impact all desirable global leadership competencies having no significant impact on dimensions of personality (Caliguiri and Di Santo, 2001). If this is the case, then careful selection becomes an important dimension of global leadership success. However, as other writers have pointed out, it would be a mistake to focus on personality and individual competencies to the exclusion of broader social and demographic characteristics which also have an influence.

The question - is it possible to develop global leadership competencies outside the experience of an international assignment - is perhaps the most challenging. The vast majority of research literature examines global experience from the perspective of the organisation rather than that of the individual (Kohonen, 2005). As a consequence, little work has focused on identifying the processes through which an international assignment facilitates the development of global leadership competencies, how such learning takes place and whether alternative experiences may create the same outcomes. It is important to understand these questions since, unlike domestic development, global leadership development is an individual process which involves “deep seated change in competence and world view” and “includes experiences over which the company may have little or no control” (Osland et al, 2006). It is also a matter of degree and while some global leaders may achieve success at a particular time, it may not last long as the global environment throws up more and new business challenges (Dainty, 2005).

Initial Research Activity:

During the next two years, SDI research activity in this area will aim to increase our knowledge, insight and practice in global leadership, focusing specifically on global leadership development during international assignments. Our initial research will be in collaboration with PSi, PSIOD, Henley Business School (UK) and Rady School of Business (USA). Our collaboration with research partners will allow SDI and it’s partners to attract funding and resources to undertake the research on an international level to provide a number of tangible benefits:

• Through increased understanding of the dimensions that most effectively facilitate global competence development in international assignments, to better manage assignments to maximise learning and accelerate performance.

• Testing and clarifying the capabilities and competencies that lead to effective global performance, organisations will be better able to select, develop and manage leadership and talent for global employment.

• With a clear understanding of the developmental process experienced during international assignments, organisations will be able to design development opportunities that replicate those of costly international assignments.

An initial initial research project is already being piloted through PSi and PSIOD in Europe. The approach is to establish a partnership relationship with non-competing organisations from a variety of industries that understand the importance of global talent to their business strategy and success and have developed a degree of insight and sophistication in their thinking and approach. These organisations are better positioned to reflect best practice and to leverage the value of new thinking and approaches generated through the research.

We will share the general findings and conclusions from the study with participant organisations and generate opportunities for participating organisations to create a learning community by coming together to share experience and practice. In addition, while respecting the principles of individual and organisational confidentiality, articles may be published in academic and trade journals and papers presented to relevant conferences and development workshops to disseminate the findings and support general development of best practice.