Coaching Topics

/Coaching Topics

Coaching Topics

Ikea’s Global Mindset, a Competitive Advantage in Emerging Markets.

Ikea is about to open its first store in India, in what it seems to be one of the last big untapped frontiers for international retailers. Ikea has been successful in China, where they were able to understand the needs and wants of the customers and  local management practices.  Ikea is taking this approach, and implementing practices to meet the Indian Market, in other words, Ikea plans to bring its core concept to the Indian market however, influenced by acquired local knowledge; this is a Global Mindset approach.

Ikea is a Global Mindset company

Global Mindset: “It is the ability to step outside one’s base culture and to understand there is no universally correct way to do things.”   – Dr. Gary Ranker.

The opening of the India store is not happening overnight, in fact it has been a long process.  At the center of this initiative was not only a curiosity but a necessity for the company to learn about the culture and the Indian consumer.  As Ikea CEO Michael Ohlsson explains, “Most people don’t really know and can hardly imagine that we visit thousands of homes around every store in the world every year. We sit down in the kitchen and talk to them … that’s the way we try to learn and understand. ‘What are you annoyed with? What are your frustrations? What would you like to have? How much can you afford? What are your alternatives?'”

Ikea has Global Mindset Leaders

In 2012 Juvencio Maeztu landed in India as the CEO of Ikea India.  Since then, he has been busy trying to understand and laying the foundation to make Ikea a success in India. In his first two years, he stepped out of his comfort zone, by exploring, learning and adapting his style and the company’s to the “Indian way of doing things.”  As he explains, “This is a market you need to learn and not come into with an attitude that you know everything.” He met people from all walks of life asking them for advice and things that Ikea should know about their new market.  Maetzu is a leader with a vision and a Global Mindset.

Maeztu, a Global Mindset leader has moved back to Europe, his replacement in India is Peter Betzel.  Peter is passionate about diversity and inclusion and has the tools and the foundation to make Ikea a success in India and as India opens its first store, the components for success are there.   They are not taking risks; rather, they are executing on a business plan with a global mindset approach.

The approach Ikea has taken to globalization is truly exemplary.  They are taking the necessary time to understand the culture they are moving into and adapting their practices accordingly. Unlike the Home Depot approach previously discussed, their incompetent local adaptation and mode of entry were the main reasons for their lack of success in China.

The principles of the success of Ikea are simple, stepping out of their base culture with an open mind that there is not a universal way to do things, simple but not easy.  Companies are not global; leaders are, he success of Ikea is driven by Global Mindset leaders drive the success of Ikea.

 

 

 

 

 

 

Ikea’s Global Mindset, a Competitive Advantage in Emerging Markets. 2018-08-03T21:49:11+00:00

Global Mindset and the Home Depot China Experiment.

In 2006,  Home Depot Inc. decided to enter the Chinese market.  First, they acquired 12 stores from Home Way, a Chinese company. By September 2012, all Home Depot stores had closed.   They announced that it would close all of its big-box stores in China, ending an investment that cost the company upwards of  $160 million.  Home Depot, like  every big company on the planet, saw a massive opportunity in China, where the dramatic growth of the middle class has opened up a vast new market and the potential for profits yet they failed to capitalize on any of that market share and the investment was a failure.

So what went wrong for the Atlanta-based company? 

According to a recent case study, Journal of Business and Management Studies, the failure of Home Depot in China can be attributed to a number of complicated reasons.  One of those reasons was a disconnect between the needs and wants of the market.  In order to achieve true and successful globalization of business, business leaders need to possess the right mindset,  a Global Mindset.

According to the Journal article, there are two main reasons why Home Depot failed in China:

  1. Incompetent local adaptation
  2. The wrong entry time and entry mode

1- Incompetent Local Adaptation

First, Home Depot did not address the Consumer’s needs and wants and they ignored the local culture.  “When in Rome, do as the Romans do,” says Josh Noble at Britain’s Financial Times. In other words just because it works well in Atlanta, does not mean it will work just as well in Tacoma, Toronto or Tianjin.   The Biggest assumption that Home Depot made is that middle-class Chinese would act like their American counterparts in areas of home improvement.  However, the “comparatively low cost of labor prompts middle-class Chinese consumers to pay handymen or independent contractors to do the kinds of projects American homeowners tackle on their own,” Indeed, Home Depot spokeswoman Paula Drake described China as a “do-it-for-me market, not a do-it-yourself market.”

Second, Home Depot did not see the importance of preparing managers/executives to deal with local management practices.  The lack of awareness of the various social relationships (in Chinese “Guanxi”) was also a fatal problem of the company’s management.  Overall, Home Depot neglected to deal with  relationships with outside entities and in some cases, instrumental in for developing business in China.  Home Depot failing in this management behavior resulted in the disadvantageous position of the company in the local market.

2- The Wrong entry time and mode

At one point Home Depot blamed the slow economy and even the cultural differences, but that hasn’t stopped Ikea. “The furniture retail giant from Sweden is killing it in China, and it’s famous for making its customers put everything together themselves,” says Kim Bhasin at Business Insider. The difference? Ikea understands what the Chinese consumer wants and has therefore adapted their strategy to the fulfill the needs and wants of their Chinese customers.

“The successful company of the future will have a global mindset as a core characteristic of its leadership”

 -Dr. Gary Ranker

Surprisingly, Home Depot did not do  detailed research of  consumer behavior and market features of the local Chinese conditions.  First, the company made one big assumption,  they only saw the “potential” market size based on population and  home ownership, rather than on the market needs and wants.

How is possible that a company as large as this would make these “basic” mistakes?

Organizations increasingly need executive talent to lead their growing international operations. They need truly “global executives”—those who can work effectively across countries and regions to advance corporate goals while balancing regional and local interests.  They need leadership with a Global Mindset.

How does it relate to Global Mindset leadership?

We welcome your comments.

Global Mindset and the Home Depot China Experiment. 2018-07-20T22:20:10+00:00

Qualities of a Global Mindset Coach

The most important factors of an effective Global Mindset Coach  according to a recent study shows the importance placed by the respondents on the coach’s actual on-the-ground experience in other cultures. But experience with other cultures can take many different forms. It could be that you grew up in a family that has more than one culture represented.

You may live as a child or as a young adult in another culture, study, or have experience in your own professional background where you live and work in another culture. All of those forms have different values for the potential coach who is in a position where global mindset is important.

Comfort with change is cited as being the next most important coach quality when looking at what it takes to be a global mindset coach. For some people change comes easily, but for many of us that’s not the case. When we become more comfortable with change we can deliberately put ourselves in positions where change is what we confront.

Some of these coaching qualities–like working with people from other cultures, familiarity with specific countries, and education in other countries–were all listed as important qualities for a coach who was expected to help someone else develop a global mindset. One thing that stands out is comfort with change.

If you think about it, comfort with change has relevance for dealing with or having experience with other cultures in that there is a dramatic change necessary in your mindset and your ability to cope with the values and differences of another society.

It’s possible to teach many of these qualities. We can depend on training from outside sources that could potentially help the coach develop global mindset.

Universities and institutes could even provide some form of cultural experience, both by bringing people to the training, and providing an opportunity for the coach learning global mindset to have an experience in another culture.

Qualities of a Global Mindset Coach 2018-07-19T19:46:26+00:00

Notes from Global Leaders: Global Mindset Coaches Serve as Role Models and Leaders

Culture coaches emphasize differences. There are many of those. Only a few, however, are ‘Global Mindset’ coaches, among whom Dr. Gary Ranker is preeminent. Such rare assets exist to support business leaders’ success in today’s always-online, fuzzy-bordered business world.

‘Global Mindset’ coaches serve as role models and leaders of their own multicultural leadership experience to those who strive in a fast-moving global market. They need many attributes but foremost, they must have high moral values and be true to those always. At the same time, they should be sensitive to competing cultural forces and exercise pragmatism with care. Wherever I meet Gary Ranker, be it in Europe, North America or Asia, I meet the same highly-principled man, but I see him engage the most appropriate styles in his coaching in cultures as diverse as Japan and the U.S..

Dr. Ranker is always true to his values, but he is also attuned to the current environment–the mark of a truly great “Global Mindset’ coach. His latest book adds much to the world of business leadership.

–Iain Martin
Author, Looking Down on Leaders – a bird’s eye view of business and bosses. Chair of I.J. Martin & Co Ltd, Executive Coaches for Global Business Leaders, with presence in Europe, Asia and the U.S., Zurich, Switzerland.

Notes from Global Leaders: Global Mindset Coaches Serve as Role Models and Leaders 2018-06-29T21:52:00+00:00

Notes from a Client: Triggering Positive Changes in the Workplace and Beyond with a Global Mindset

I decided to hire a coach because I wanted to improve my skills as a leader. I wanted to make sure that I’m always open-minded to outside influences that can improve me as a person and businessman. I’m intrigued by the process of growth, and one-on-one education.

I noticed Gary’s authentic nature and his genuine approach to how he communicates with people. He has a big heart and an empathetic approach to his coaching style. He’s worked at a global level of business from a young age, running large companies overseas, and understanding the intensity of corporate structures and the power struggles that transpire when working with large groups of diverse people.

In our coaching conversations, Gary gets to the root issues at hand. He’s very intuitive about what might be going on, and directs our conversation to unexpected places within the challenges that I face. He walks his talk with people from all walks of life, and from all parts of the world, melding the East and West together in his daily travel.

I find that having a global mindset helps me at a local level because it makes me realize the world is both big and small at the same time, depending on the situation at hand. Global mindset helps me with the diversity of my client base, selecting markets and understanding client needs and wants, and in dealing with differences from all over the world. It helps me in the hiring, development and training of different people, because in large cities the world has become a melting pot. I’ve come to realize that any one thing I do in my business can ripple out and affect many people, so I want to make sure that global mindset thinking is always part of my decision-making process of being a leader.

My business relationship with Gary has turned into friendship. His caring nature—his desire to help and make a difference in my life and the lives of others—has made a positive impact worldwide. I’m honored and proud to be part of that journey, and I know Gary’s efforts will open up the minds of many people, which will trigger positive changes in the workplace and in our intercultural communication, one human being to another.

Gary’s passion and his global mindset keep me thinking about the bigger picture, staying in a positive, productive mode of thinking that helps me create positive change for my clients and the people that I meet.

My coaching experience with Gary is making me a better leader in the short term, and I know that over time it will help me have more creative thoughts on how I can connect with people and clients outside my local markets. It will help me communicate better with all people and to make a greater difference in their lives and businesses.

Gary’s approach to developing a global mindset should be part of the on-going training and education in companies, because having a global mindset shapes the culture and boosts the revenues. With a global mindset you can better open markets, open more revenue streams, and drive profits as you serve people in a more global way.

Notes from a Client: Triggering Positive Changes in the Workplace and Beyond with a Global Mindset 2018-07-19T19:48:35+00:00

The Benefits of Executive Coaching

This week I wanted to share with you what I believe are the “real” benefits of coaching. As you probably know, the type of coaching engagement I am most familiar with is coaching CEOs and high-level executives.

I see Executive Coaching as a CEO’s competitive advantage. I have observed that when executives start making better decisions, developing better relationships, taking risks, increasing their presence, etc., I can see a positive correlation between those changes and four main components, which in my view are the real benefits of coaching.

1- Awareness

Successful individuals are a unique breed.  Since they have achieved a high level of success, they sometimes look at the coach, perhaps thinking to themselves or saying, “Why should I listen to you? Why should I take your suggestions? I have evidence that the way I behave, manage, and communicate is successful.”  The reality is that everyone can identify one or more behaviors that deter them in some manner from being their best.  When this behavior is coupled with the awareness of perception, then you have a powerful combination, and it is perhaps one of the most valuable benefits of coaching.

2- Change in Behavior and Perception

Successful individuals are a special kind.  Since they are successful already, they sometimes look at the coach, perhaps thinking to themselves or saying, “Why should I listen to you? Why should I take your suggestions?”  I have evidence that the way I behave, manage, and communicate is successful.”  The reality is that everyone can identify one or more behaviors that deter them in some manner from being their best.  When this behavior is coupled with awareness of perception then you have a powerful combination, and it is perhaps one of the most valuable

3-Benefits of Coaching: Efficiency and Power

Perhaps this point can be better illustrated with an analogy.   If I have a car with a powerful engine, you can start the car, put your foot on the brake pedal, put the car in drive, and still get the car up to a high speed. Highly successful individuals are very powerful engines and having their foot on the brake has not kept them from being successful. The reality is, however, that the brake drags down their efficiency. If they took their foot off the brake, they could go faster using the same power—or they could use less power, less energy, to get the same speed. In other words, the brake does affect performance and efficiency. It’s just that they are powerful enough to absorb that inefficiency and still go fast until conditions change.

4- An Unbiased Point of View

People at the top are less likely to receive meaningful feedback, it gets lonely at the top. Moreover, blind spots are less obvious when things are going well.  Executives tend to become almost strictly inward-looking, especially when they have demonstrated to high levels of success. These blind spots can become “the foot on the break of a high-performance car.” The coach provides an unbiased opinion and is only concerned with the CEO’s success as the leader of the company.

In my work globally, I have been surprised to see the low percentage of CEOs who have coaches.  In fact, two-thirds of CEOs don’t receive any outside advice on their leadership skills, yet almost all would be receptive to suggestions from a coach. Those are the findings of a CEO survey conducted by Stanford University.  In my experience, the most successful assignments have been with CEOs who seek a coach as a key competitive advantage to stay at the top of their game.

All of the coaching benefits can be tracked to awareness, change of behavior and perception, increasing efficiency and power and having an unbiased point of view. Those are the real benefits of coaching.

 

The Benefits of Executive Coaching 2018-05-08T21:02:17+00:00

What is Executive Coaching

Many times, I have been asked by clients and friends, “What is executive coaching?”.   A simple and straight answer would be the International Coaching Federation (ICF) definition  “coaching is partnering with clients in a thought-provoking and creative process that inspires them to maximize their personal and professional potential”.  This definition is elegantly simple, but it is packed with many complexities.   Two of those complexities, especially when coaching CEOs and other high-level executives are related to the driver/objective and the length of the engagement. 

Let’s talk about the driver/objective of the engagement first.  When people initiate a coaching engagement it usually falls into four categories.  The one I am most familiar with is Coaching in response strategic moves, specifically managing critical talent, top leadership, CEO succession planning.    

The next complexity is regarding the ideal time of the engagement.   

Executive Coaching as a limited-time intervention.  Whether is three or six months; many coaches present their work as having a distinct period. They clarify that this is an intervention, albeit a very positive one, but an experience that is time-limited.  

Executive Coaching as a competitive requirement.  This type of coaching relationship is similar to a relationship with an athletic coach. This is my personal sweet spot.  In athletics, at the highest level, as long as you wish to stay in the game, to be at the top of your performance, you continue to appreciate the value of a coach. You need to continue receiving the benefit of feedback about style and form based on the coach’s observation. That is the way the athlete continues to improve in an environment where they know fully well that someone else will run faster or jump higher each year, unless they make contestant improvements.   

Coaching high level executives isn’t much different. They have a demanding group of stakeholders who expect performance to continue to increase year after year, quarter after quarter, month after month. The only way this can be achieved is to continue to become more and more efficient, more and more effective. And one of the ways that effectiveness can be increased is through the constant feedback about style and form that the executive coach provides.   

What are your thoughts on this?  I would love to hear your from you. 

What is Executive Coaching 2018-04-30T19:01:23+00:00

Defining Global Mindset

For many years, as a global CEO coach, I have used the Global Mindset phrase to indicate an orientation of openness towards other cultures, other people, and another way of doing things.  In my most recent book, Global Mindset Coaching, I asked global leaders,  “what are the most critical aspects of a Global Mindset?”.   Their responses varied, but in short, the consensus was that having a Global Mindset means: 

  1. Having an openness to learning 
  2. Ability to adapt to new cultures 
  3. No one universal way to do things 
  4. Interest and curiosity 
  5. Proactive use of diversity 
  6. Not bound by local customs. 
  7. In my own experience and taking into consideration the results of my research, I have updated my Global Mindset Definition as follows.    

“It is the ability to step outside one’s base culture and to understand there is no universally correct way to do things”.  

To understand this, I have divided the definition into its two main components.   

A) The ability to step outside one’s base culture.  This is the willingness of the individual to take risks, exploring learning and adapting

B) There is not a universally correct way to do things.Global Mindset leadership is situational, cultural differences and similarities are neither positive nor negative;  “my way is not the only way.”   

In dealing with new cultures, there are things that you can see and explore.  Language, food, music, the way of dressing, and others.  Also, you can also see how people work, attitudes like punctuality, negotiation styles, and how decisions are made.   

There are other things you don’t see, but they impact how people work together.  Behaviors such as whether individual or group dynamics take precedence in decision-making, whether the culture is hierarchical or egalitarian, and whether relationships must be established before or after entering into a project.    

Developing a Global Mindset will allow any leader to take advantage of those differences to manage in a way that is sensitive and effective.   They become more effective because of those differences, rather than in spite of them.    

I believe that one of the most important characteristics for leaders to cultivate is a Global Mindset.  Today one of the biggest challenges of the globalization of business is preparing global leaders that embrace a Global Mindset. 

What are your thoughts on this matter? I’ll like to hear from you.   

Defining Global Mindset 2018-04-20T21:22:43+00:00

Globalization of Business and Developing a Global Mindset

As you probably have experienced, the world today is not the one most of us grew up in.  Radical changes have occurred, the biggest drivers include global economic opportunities, trade liberalization and the communications revolution. This has strategic advantages and challenges.

Globalization of business is nothing new.  In fact, it started much, much earlier, with the early trading empires. The Silk Road between China and Europe, Phoenicians, Egyptians, Romans and Greeks among others.

In today’s economy, businesses want to sell more, stay competitive, increase their revenue thus they are looking to diversify their presence and their products across the world.  Their biggest challenge is preparing leaders to thrive on the global stage. Unfortunately, there is not a way to minimize this, if companies want to successfully globalize, they must develop leaders with a Global Mindset.

Global executives need the same knowledge and capabilities as domestic executives, as well as unique attributes and skills to work in often radically different cultures, political systems, and environments.  They need to develop a Global Mindset.

The most common assumption I have seen is that global leadership is developed only through experience.  I truly believe that experience is not sufficient for the development of an effective global leader.

If experience alone is insufficient to develop an effective global leader, what do executives need to learn to be effective?

They need to develop and embrace a Global Mindset, in fact I see it as a requirement for success in the globalization of business going forward. Only by being truly open to new ideas and new ways of relating to each other, leaders will be able to capture the opportunities available on the new, fast-changing global stage.

Interested in learning more about Global Mindset or the globalization of business,  please visit this page.

 

Globalization of Business and Developing a Global Mindset 2018-04-17T22:58:49+00:00

What is Global Mindset?

I first started to use this phrase in the 1990s to describe myself.  It has become popular in the US and abroad, but what does this mean?  When I talk about having a global mindset, I’m indicating my personal belief that I can get beyond my base culture.  It refers to the cultural perspective that involves awareness of self, knowledge of many cultural values and an understanding of other people’s practices based on these values. In my view, when people make decisions more broadly rather than influenced by a single cultural perspective they are much more capable leaders, they able to deal with cultural diversity and lead global teams more efficiently.

As an American, having a global mindset means getting beyond my base culture and proactively learning about the differences and utilizing those differences to achieve my professional goals and those of my clients.   In my global coaching practice,  I have defined four beliefs that are at the bedrock of my Global Mindset Coaching.

Global Mindset: There is no one universal correct way, but rather leadership is situational.  We need to examine what is most appropriate, look to the individual people, and see the unique characteristics of a particular culture. If our goal is to have the other person agree with us, purchase what we’re selling or be involved in discussion with us, then we should use the most appropriate method to get that agreement. You understand local markets and take advantage of business opportunities

Global Mindset: Cultural differences and similarities aren’t positive or negative.  This is opposite than ethnocentricity, it is the recognition of the multitude of choices about how to interact, and indicates that we make conscious decisions based on that sensitivity and considerations for others.  It recognizes that your culture is not better than any other culture.  You understand the potential regardless of the package in which it comes.

Global Mindset:  Developing An Active Openness to learning  –  Learning about a new culture beyond being tolerant.  Global mindset goes beyond tolerance; it is proactively learning and utilizing the values learned to further personal, and organizational goals.   To put it simply,  imitating a foreigner can be viewed as tolerance and acceptance, knowing what you do and why you do it is having a global mindset.   It is the ability to be effective in interpersonal relations

Global Mindset:  Awareness is a very useful map. This map comes with three different views,  Awareness of self-  This is understanding you at a deep level. The more you know about yourself, the better you are at adapting life changes that come your way.   Awareness of Social Context -This level of awareness gives you the ability to understand and respond to the needs and wants people.  When you respond to those needs and wants,  you gain their trust.  Awareness of Perceptions –  Do you know what other people really feel about you?  If the people you interact with daily were to be completely honest with you and tell you how they think of you,  would you like what they say?

Many of us know people that seem to be successful working effectively across cultures, we all have that friend that moves from country to country and thriving wherever  he goes.  They seem to be able to address situations with a cultural knowledge and sensitivity without sacrificing their personal values and types.  They are consistent with others’ expectations of the way they will behave. Those leaders have a global mindset.  Do you?

 

 

 

What is Global Mindset? 2018-03-30T22:10:34+00:00