Instructions Using the CSU Online Library, locate a peer-reviewed article that discusses how leaders must have a vision when leading an organization globally. Topic ideas include visionary leadership,

20 Independent Association of Business Scholars – Edition 2 Volume 1 21 st-Century Global Leadership and Beyond By Jose Perez [email protected] Colorado Technical University 4435 N. Chestnut Street Colorado Springs, CO 80907 Abstract The business world is expanding. Much of this growth is being driven by globalizatio n and advances in technology. The characteristics and practices which helped organizational leaders to succeed just a few decades ago have changed. The purpose of this paper was to examine the characteristics and practices essential for leading global orga nizations today and well into the f uture. This paper also addresses several characteristics and practices essential for leading global teams, managing conflict, and diversity. A discussion of how these characteristics and practices help organizations to ma intain a competitive edge was also provided. However, a review of the literature uncovered a gap in future research to be focused on how to evaluate and develop a global mindset at the organizational level. Key words: Transcultural Leadership, Cross -Cultur al Leadership, Multiculturalism, Global Leadership 21 Independent Association of Bus iness Scholars – Edition 2 Volume 1 The global business market is growing. Globalization and the leveraging of technology is driving much of this growth. With this growth, comes the opportunity to expand operations internationally. For those organizations that decide to jump into the global business landscape, there will be new markets to discover. There will also be challenges associated with entering those markets. However, the type of leadership approaches which were responsible for ach ieving success domestically may not apply in a global context. This is because the global environment is complicated. Leading globally requires leaders to possess certain characteristics essential for leading today’s global organizations. Today’s and tomor row’s leaders will also need to be able to apply leadership in a manner that takes into consideration the multicultural compositions of their organizations. The ability to lead diverse teams and manage conflict will also be essential for organizational suc cess. This will demand leaders who are skillful at leading complex global systems and organizations. These leaders will also need to have the attributes necessary for distinguishing them as global leaders. Problem Statement Globalization has created many c hallenges for 21st -century global leaders. For example, differences between cultures, political ideologies, and even religion demand that today’s global leaders be sensitive and familiar with the world around them. Lack of sensitivity to such factors can b e catastrophic to the bottom line for global organizations. As a result, leading a global organization requires special knowledge and 22 Independent Association of Business Scholars – Edition 2 Volume 1 skills. This paper will examine the characteristics and practices essential for leading global organizations today and wel l into the future. This paper will also address those characteristics and practices essential for leading global teams, managing conflict, and diversity, which helps them maintain their competitive edge. Literature Review As globalization continues to in crease, it is creating opportunities for many businesses to expand their operations internationally. The leaders who will lead these organizations will need to have the characteristics and practices essential for leading global organizations today and well into the future. According to Mendenhall (2013), there are three key sets of global leadership skills which are distinctive for leading an international organization. The first is the wisdom and expertise to lead their organizations. The second is the abi lity to manage people and form meaningful relationships. The third is the capability to manage self. Forsyth (2015) postulates that 21st -century global leaders will need to demonstrate several characteristics if they are to succeed today and in the future. For example, cultural intelligence, being a lifelong learner, strategic thinking, and strong communications skills are just a few of the characterizes needed for being a successful global leader, according to Forsyth. Furthermore, Caldwell (2015) identif ied five universally accepted characteristics of leadership which was found among organizations that excelled in their industries. The five characteristics identified were (a) constant organizational development, (b) results driven, (c) a quality 23 Independent Association of Bus iness Scholars – Edition 2 Volume 1 leadershi p team, (d) a diverse workforce, and (e) a future -oriented mindset about organizational goals. According to Caldwell, these five factors have a direct influence on how well a leader will be able to lead a global organization. Looking towards the future, P ovah (2012) distinguished five basic characteristics of leadership which will be needed by future leaders.

First, leaders will need to have the intellectual capacity to lead. Second, they will need to have high levels of emotional intelligence. Third, tomo rrow’s leaders will need to have strong moral values. Also, leaders will need to have the drive and resilience to reach their goals. Finally, they must be willing to learn from their experiences. However, Povah adds that all these are mute if the leader do es not fit into the organization’s culture. These basic characteristics must be aligned with the organization’s mission, values, and vision of its future if the leader is ever expected to succeed, according to Povah. Research conducted by Cseh, Davis, and Khilji (2013) identified that a leader’s intellectual, psychological, and social abilities were critical components for developing a global mindset. According to Cseh , Davis, and Khilji, these three important components can be integrated to help leaders de velop a global mindset. Therefore, it can be argued that with the right training and support, leaders of international organizations can develop a global mindset and become good global leaders (Minner, 2015). Essentials for Leading Global Teams 24 Independent Association of Business Scholars – Edition 2 Volume 1 For any or ganization to succeed it requires teamwork. This facet of leadership is even more critical in a global organization because of the number of people it takes to work together to achieve a common goal.

These common goals cannot be achieved without teamwork o n a global scale. This requires good leadership. There are characteristics and practices leaders need to effectively lead global teams. According to Mendenhall (2013), there are several common characteristics that are shared by effective global teams. One characteristic of effective global teams is clearly defined tasks and goals. Here each team member understands his or her role and holds themselves accountable for achieving those goals. Another characteristic of global teams is that they are diverse with the right combination of skills needed to complete their tasks. Mendenhall further adds that effective global teams respect and trust each other as well as their cultural differences. Matthews and McLees (2015) argue that leaders who create a team culture of trust and mutual respect helps increase teamwork and leads to improved organizational performance. Dumitrescu, Lie, and Dobrescu (2014) also identified several characteristics and practices of successful global teams. Since most global teams are cult urally diverse, global leaders must respect this multicultural diversity. Global leaders should also be able to speak and understand a foreign language in addition to their domestic language.

Global leaders must also recognize that each team member has a different learning style and each impacts team performance. Dumitrescu, Lie, and Dobrescu further add that leaders who lead global teams must also be empathetic towards their team members. Therefore, these 25 Independent Association of Bus iness Scholars – Edition 2 Volume 1 leadership characteristics and practices have a rol e in creating effective global teams. Essentials for Global Conflict Management The fact that global organizations are highly diverse, it is inevitable that conflicts will occur. It is not a matter of if it will occur, but when it will happen. When they do occur, leaders must be ready to resolve them quickly to minimize the disruption they create to maintain organizational performance. Therefore, global leaders must understand the characteristics and practices essential for successfully managing organizat ional conflict. Thomas and Kilmann ( Prause & Mujtaba, 2015) described five conflict management practices leaders use to handle conflict in diverse organizations, which can also be applied to global organizations. The first approach is referred to as compet ing because the leader uses his or her formal authority to force the desired outcome. The second approach uses accommodating conflict management in which there is one clear winner at the expense of the other person. The third conflict management approach i s called avoiding because the leader ignores the conflict situation in hopes that it will go away. The fourth conflict management approach is a collaboration where the leader creates a win -win situation which satisfies both parties. This is the preferred m ethod for resolving a conflict. The last approach is compromising where the leader attempts to resolve the conflict in a manner that is partially satisfactory to both individuals. According to Thomas and Kilmann, this last approach is often a temporary sol ution. Organizational leaders are tasked with creating a harmonious 26 Independent Association of Business Scholars – Edition 2 Volume 1 workplace, which leads to improved performance. However, conflicts do occur. When they do occur, leadership styles can influence conflict management outcomes. Research studies have shown that there is a relationship between leadership styles and conflict management practices. For example, Saeed, Almas, Anis -ul-Haq, and Niazi (2014) studied 150 mid -level managers and found that their leadership styles were a factor in how they managed confl ict. Their study showed that transformational leadership was effective for most conflict management situations because transformational leaders were likely to be more open minded and use obligating styles of conflict management. Conversely, transactional l eadership was associated with the compromising conflict management approach, while laissez -fair leadership was associated with the avoiding conflict management approach. The implication for global leaders is that if they are to effectively manage conflict, they must understand that their leadership styles influence their conflict management choices. Essentials for Global Diversity The workplace of the 21st -century is changing. There is a demographic shift occurring. There are now multiple generations wor king together in the workplace. Woman employees comprise a larger share of the workforce than they did several decades ago. Globalization is also introducing new cultures into the workplace. For organizations to succeed in this environment they will need l eaders who have the ability to lead a diverse workplace. Leaders will need to create an environment where employees feel valued and can contribute to the success of the organization ( Derven , 2014). In fact, leaders will need to learn to 27 Independent Association of Bus iness Scholars – Edition 2 Volume 1 manage diversity an d the many cultural differences that exist in the workplace (Sharma, 2016). Sharma (2016) further adds that diversity management will require leaders to encourage diversity and develop a culture of inclusiveness so the organization can achieve maximum perf ormance. Also, according to Smith (2015), leaders who can manage diversity are equipped with the tools necessary for minimizing or eliminating potential conflicts within the organization. There are essential practices leaders can implement to successfully manage organizational diversity. For example, Verma (2015) identified five essential strategic practices leaders could apply for managing diversity. First, senior leadership must support a culture of diversity. Unless senior leadership embraces the value of diversity, any diversity management effort will fail. Second, there must be human resource plans in place for creating policies and practices that support diversity such as recruitment and retention efforts. Third, to help employees better understand d iversity and its value, there must be training in place to educate employees about the importance and value diversity adds to the organizations. The organization must also periodically conduct organizational assessments to uncover any potential bias to any group within the organization. There must also be effective communication systems in place so information regarding promoting diversity can be disseminated. Finally, there must be consistent monitoring and accountability of diversity efforts to ensure its success. Collectively, these practices help create an environment which will allow leaders to 28 Independent Association of Business Scholars – Edition 2 Volume 1 manage organizational diversity more effectively. Putting it Together to Maintain a Competitive Edge A review of the literature showed that the characteristics a nd practices previously discussed were necessary for leading global organizations. Likewise, these characteristics and practices also assist global organizations in maintaining their competitive edge. For example, wisdom and expertise allow global leaders to develop strategies and visions necessary for sustaining the organization in the long -term. M anaging people and building relationships produce loyalty and enable leaders to effectively collaborate with numerous stakeholders in their efforts to accomplish the orga nization’s strategic objectives (Mendenhall , 2013). When leaders are reflective, they are more purposeful about how their behavior affects organizational outcomes. Leaders who adopt the attitude of continuously developing and improving the organiz ation build a culture that is willing to accept change. This provides a competitive edge because it allows for more flexibility in an already turbulent environment. Also, by embracing diversity, leaders create an environment that permits organizational mem bers to respect each other’s differences. This is essential for building a bridge of understanding across multiple cultures (Caldwell , 2015). Furthermore, being open to diversity and its role in a global organization, facilitates team building practices an d minimizes the conflicts which ultimately arise due to group differences. Also, being aware of the different conflict management practices described by Prause and Mujtaba (2015) helps maintain a competitive advantage by 29 Independent Association of Bus iness Scholars – Edition 2 Volume 1 helping to avoid any unnecessary di sruptions which may prevent the organization from achieving its objectives. While all these characteristics and practices help maintain a competitive edge, they must be accomplished by leaders who have or can develop a global mindset. Doing so allows globa l leaders to sustain their competitive edge in the 21st -century and beyond. According to Cseh, Davis, and Khilji (2013), a global mindset is a holistic approach to leading globally. This creates a competitive edge because leaders can combine these characte ristics and practices and apply them both domestically and globally to accomplish the organization’s goals.

Therefore, when organization leaders put all these facets together, they can maintain a competitive edge. Summary The business world is expanding. M uch of this growth is being driven by globalization and advances in technology. The characteristics and practices which helped organizational leaders to succeed just a few decades ago have changed. The new leadership paradigm now requires leaders to have a global mindset. This will require special leadership abilities related to our global environment to succeed in the 21st -century and beyond. This paper examined the characteristics and practices essential for leading global organizations today and well int o the future. This paper also addressed several characteristics and practices essential for leading global teams, managing conflict, and diversity. A discussion of how these characteristics and practices assist organizations to maintain a competitive edge was also provided. 30 Independent Association of Business Scholars – Edition 2 Volume 1 Recommendations and Conclusion To prepare leaders to lead in the 21st -century and beyond will require careful thought and planning. The world has become smaller and global markets more competitive as developing countries enter the inte rnational business arena. This has resulted in a more integrated and complex global system. To navigate this terrain, leaders will need to develop a global mindset. They will also need to have the right characteristics and apply leadership practices that t ake into consideration the diversity inherent in their organizations along with the complexities found in the business world. Therefore, to facilitate the development of global leaders, it is recommended that organizations better prepare their leaders to b ecome global leaders. This can be accomplished by providing evidenced -based leadership training. Training and development in improving cultural intelligence is also essential. This training can be formal as well as informal. Individuals who have been ident ified as potential global leaders can also be given expatriate leadership assignments to provide them with the necessary experience for developing a global mindset. This will also help increase their cultural intelligence. Human resource management departm ents will also need to play a more strategic role in the leadership development process. For example, they can develop policies that support diversity and inclusiveness. Hiring and retention policies that support the importance of diversity management are examples. Finally, senior leadership must lead by example. They must create a culture which is empathetic and fosters a global mindset. 31 Independent Association of Bus iness Scholars – Edition 2 Volume 1 In conclusion, a review of the literature showed that there are several characteristics and practices essential for lea ding global organizations today and into the future. Wisdom, the ability to build meaningful relationships, and strategic thinking were a few characteristics and practices needed to succeed as a global leader.

Leading teams, the ability to manage diversity , and manage conflict were also found to be necessary for leading in the 21st -century and beyond. Leaders who exhibited these qualities also help their organizations maintain a competitive edge. Finally, by developing and training their future leaders, org anizations can create a pipeline of ready and capable leaders to help sustain themselves well into the future.

However, a review of the literature uncovered a gap in future research to be focused on how to evaluate and develop a global mindset at the organ izational level. 32 Independent Association of Business Scholars – Edition 2 Volume 1 References Caldwell, J. (2015). Leading globally, thinking interculturally: Developing global characteristics. The Journal of Business Diversity, 15 (1), 55 -59. Cseh, M., Davis, E. B., & Khilji, S. E. (2013). Developing a global mindset: L earning of global leaders. European Journal of Training and Development, 37 (5), 489 -499. Derven, M. (2014). Diversity and inclusion by design: Best practices from six global companies. Industrial and Commercial Training, 46 (2), 84 -91. Dumitrescu, C. I., Lie, I. R., & Dobrescu, R. M. (2014). Leading Multicultural Teams. FAIMA Business & Management Journal, 2(4), 43 -54. Retrieved from Forsyth, B. (2015). Characteristics and practices essential to leading global organizations in the 21st century. Journal of Management Policy and Practice, 16 (1), 108 -117. Matthews, R., & McLees, J. (2015). Building effective projects teams and teamwork. Journal of Information Technology and Economic Development, 6 (2), 20 -30. Mendenhall, M. E. (2013). Global leadership: Rese arch, practice, and development [Vitalsource] (2nd ed.). Minner, W. (2015). Leading global organizations. Journal of Management Policy and Practice, 16 (2), 122 -126. Povah, L. (2012). Assessing leaders for the future. Industrial and Commercial Training, 4 4(5), 250 -258. Prause, D., & Mujtaba, B. G. (2015). Conflict management practices for diverse workplaces. Journal of Business Studies Quarterly, 6 (3), 13 -22. 33 Independent Association of Bus iness Scholars – Edition 2 Volume 1 Saeed, T., Almas, S., Anis -ul-Haq, M., & Niazi, G. (2014). Leadership styles: Relationship with conflict management styles. International Journal of Conflict Management, 25 (3), 214 -225. Sharma, U. (2016). Managing diversity and cultural differences at the workplace . IPE Journal of Management, 6 (2), 63 -79. Retrieved from Smith, D. L. (2015). Benchma rking global leadership. Journal of Leadership, Accountability and Ethics, 12 (3), 113 -118. Verma, A. (2015). Valuing diversity: Strategies and implications for organizational success. Prestige International Journal of Management and Research, 7/8 (2), 31 -38. Copyright ofIABS Journal isthe property ofIndependent AssociationofBusiness Scholars (IABS) anditscontent maynotbecopied oremailed tomultiple sitesorposted toalistserv without thecopyright holder'sexpresswrittenpermission. However,usersmayprint, download, oremail articles forindividual use.