Executive Interviews: Interview with Jittu Singh on Global Economy and Global Managers
October 2008 - By Dr. Nagendra V Chowdary

Dr.Jittu Singh
Tata Steel Chair Professor of Organizational Development, XLRI.

Unfortunately, this repeated lesson of history is often lost on those who are current leaders. They are so drunk on their own success that they refuse to pay attention to emerging danger signals and to chart a different course from the one that made them the current leader.

The need for continuous reinvention is heightened today because of increasing competition from all directions. Each year, the Fortune list has been featuring an increasing number of new entrants from the emerging economies. The old giants beware!!

• According to a recent McKinsey Global Survey, almost 70% of executives around the world say that global social, environmental, and business trends are increasingly important to corporate strategy. Yet relatively few companies act on the global trends they think will affect them most; among those that do act, only 17% report significant benefits. Why is there such a disparity between need and action?
  Yes, as I have already indicated earlier, management cannot afford to be insular any more. It must open its eyes to a wider environment surrounding it. Itmust detect shifts in socioeconomic, political, and competitive trends and change in appropriate ways as rapidly as possible; otherwise, it runs the serious risk of managing in outdated and obsolete ways. Furthermore, obtaining public support and goodwill for what it does is essential for the survival.

• Competition existed long before modern economies and businesses were born. It began with life itself. Gause's Principle of Competitive Exclusion illustrated that no two species can coexist that make their living in the identical way. What would be the new frontiers of competition?Who are likely to be the major winners in these frontiers? What would be the new differentiating (when the competitors are closing in on the gaps) factors for companies?
  Yes, there has been competition throughout human history. But what distinguishes our era is the intensity and pace of the competition. A firm does not compete against only a limited number of local or domestic competitors; it is now required to take on the best from around the globe. Therefore, the field has expanded. To compound difficulties, both the general business environment and competitors seem to throw up new challenges suddenly and at shorter intervals. As Toffler said, everybody is confronted with 'future shock'.

• Do you foresee an increasingly decreasing role of multilateral international bodies like, WTO (with the rise of regional and bilateral trade agreements and perennial showdown at recent meetings, including impasse at Doha round of talks), UNO (with private sector assuming a great role at humanitarian activities for instance, Bill and Melinda Gates Foundation, Clinton Global Initiative, etc and increasing role of Social Entrepreneurship Initiatives and Microfinance Initiatives), the IMF and the World Bank?
  The existing international organizations have played an important role in the past. However, they seem to be running out of steam. They have been criticized for not evolving with the changing nature of international trade and commerce and of being partial towards the needs of the major economic powers. If anything, globalization requires new life to be breathed into multilateral bodies such as the UN, WTO, IMF, and the World Bank. If they are not capable of transforming themselves to meet today's needs, maybe new organizations ought to be established. But this role cannot be played effectively by private foundations and initiatives.

• One of the often-cited capabilities that companies should develop is managing multicultural teams. How do individuals develop their capability to adapt effectively across different cultures? Why do some individuals possess superior capacity to deal with the challenges of working in different cultures? How do individuals reach full productive potential working in culturally diverse work environments in their home countries and overseas? How do organizations build capability for effective work assignments in locations around the world? How do organizations optimize individual and collective performance when they harness the cultural diversity of their people across the world?
  Globalization implies international operations with employees, customers, and vendors of varied nationalities. To be successful in such a context, executives in firms must have an understanding of cultural nuances. Otherwise, even their wellintentioned actions may sometimes offend people from other cultures. An understanding of foreign cultures can be developed through organized training, reading, and international travel. Companies must invest in such cultural training.

  The need for culturally well-rounded executives is going to increase as organizations spread their operations around the world. It will not be possible to staff them exclusively with citizens of the 'home' country.

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