
Looking for the Big Picture:
Holistic and Strategic Thinking in Leadership
Artifact 3: Transformative Leadership
Course: GOVN500 Governance and Leadership
Assignment 3: Leadership in a Globalized World
Kimberley A. Ilott
Faculty of Humanities and Social Sciences, Athabasca University
GOVN500: Governance and Leadership
Dr. Angela Specht
April 2022
Leadership in the Globalized World
The 20th century saw the shift from industrialization to globalization, with new technologies leading the shift. With the 21st century arriving, this shift into a globalized world was amplified with continued technological advances. In simplistic terms, globalization, defined by Oxford English Dictionary (2022), is the process by which businesses or other organizations develop international influence or start operating on an international scale. However, globalization is not simplistic. It is a complex mix of organizational leadership, technology, and economics; a mix that shows the interconnectivity of the globalized world, and a connectivity that was thrusted into the spotlight during the Covid-19 pandemic. While, initially, there was concern that the pandemic would decimate the world economy, “global business is not going away…the landscape is shifting, with important implications for strategy and management…since countries that connect more to global flows tend to grow faster, we need more rather than less globalization to accelerate the recovery from Covid-19” (Altman & Bastian, 2021).
Living through the pandemic has shown that there are some events that can only be handled by a collective global force; other such events that need global agreement on handling include climate change, terrorism, financial crises, data privacy, and economic or social disparity (Ahmed & Lee, 2021). The global pandemic threatened, and continues to threaten, the status quo of “traditional orderly change. Factors external to organizations and a highly contagious disease were forcing rapid hourly and daily changes…requiring a revisit of the competencies needed for visionary leadership. Traditional models of leadership [had] to shift from transformational to disruptive” (Brennan, 2022). To lead during these challenging times and overcome the fear of the unknown, leaders have had to focus on “good communication skills…to add to the conversation through challenges and contributions, questioning, and active listening” (Athabasca University, 2022, pg. 15). Discussing globalization cannot avoid connections to the pandemic, climate change, and other world challenges. In these unprecedented times, how leaders respond to a situation will define an organization or sector’s successes and failures. This paper will discuss the impacts of globalization on the public, private, and not-for-profit sectors, outlining challenges as well as the leadership values, skills or competencies necessary to mitigate these challenges and take advantage of opportunities.
Globalized Leadership
Today’s leaders need to think beyond their sphere of influence, understanding how strategic decisions impact those in and out of their organization. Global leadership requires the “influencing of others to adopt a shared vision…while fostering individual and collective growth in a context that is characterized by significant levels of complexity, flow and presence” (Mendenhall, et al., 2012). Visioning requires a leader to identify their values and operate according to said values; good leaders will build trusted relationships that become the foundation for their ability to influence. Kraemer (2011) speaks to the four principles of values-based leadership: self-reflection, balance and perspective, true self-confidence, and genuine humility; these leadership principles focus on the individual’s ability to turn intellectual knowledge into action. Kraemer’s principles align with Ly’s (2022) three competencies deemed essential for global leaders: the ability to demonstrate self-awareness, the ability to communicate effectively when working in multicultural teams, and the ability to think critically.
Globalization continues to transform the landscape of organizational leadership. Along with technological change, blurred organizational or sector boundaries from “alliances and mergers” (Goldsmith, n.d.) and the demand for innovation, adaptability, and collaboration are challenging the traditional leadership models. Over and above the pandemic, the current leadership challenges of ethical behaviour, corporate social responsibility, climate change, social inequality, and equality amongst the workforce, will continue to be present in future leadership generations, but as we advance forward, new or ‘under-the-radar’ global challenges will become more mainstream; challenges such as “population growth and ageing; the expansion of urban centers;…the depletion of natural and other resources, including potential food shortages; rapid technological advances; changing economic dominance; and far more interdependence among nations” (Sowcik et al., 2015). With the understanding of the challenges currently, and emerging, in an increasingly globalized world, leaders need to equip themselves with the ability to be future-focused. “This realization leads to ongoing reflection and analysis of leadership as a set of abilities that includes [an] ability to envision an exciting, collective future, and a set of skills that includes the courage to engage current issues and the challenges of the future” (Athabasca University, 2022, pg. 14, para 2). Leaders will need to be able to see the ‘bigger picture’, the interconnectedness of business, and the impact of decisions, they will need to be adaptive and flexible while promoting a vision of connectedness, transparency, and ethical behaviour.
To lead in challenging times, leaders must model the behaviour that they want to see and experience. The global environment demands leaders shift from intellectual knowledge to actionable measures. Leaders should be self-aware and adhere to their principles and values while communicating themes of empowerment, personal responsibility, and accountability. Kouzes and Posner’s (2012) five practices of exemplary leadership highlight how leaders can transform organizations and tackle challenges through “modeling the way, inspiring a shared vision, challenging the process, enabling others to act, and encouraging the heart”.
Sector Organizations & Globalization
The impact of globalization on the various sectors will continually evolve as organizations and their leaders capitalize on successes and tackle challenges; current global challenges, such as the pandemic and climate change, among others, will not have their full impact known for decades. In the subsequent sections, challenges to the specific sectors will be highlighted as well as the values, skills and or competencies sector leaders need to position their organizations to mitigate these challenges and take advantage of opportunities.
Public Sector Organizations
Statistics Canada (2008) states that “the public sector includes all government-controlled entities such as ministries, departments, funds, organizations, and business enterprises which political authorities at all levels use to implement their social and economic policies”. While the public sector varies between countries due to localized factors, common challenges span across the diversity, making public sector management complex. While private sector organizations benefit from employing best practices, government entities or public sector organizations may not be able to be as efficient, even if there is awareness of best practices, due to regulation, governance, or bureaucratic ‘red tape’.
The public sector remains as a beacon for all sectors though, “due to the role of the public sector with respect to economic growth and the increasing interdependencies of public and private sectors” (Ross, 2011). Although public sector organizations do not apply Corporate Social Responsibility (CSR) in the same manner that a private sector organization would, the public sector is increasingly challenged by the alignment of outcomes to policy. Governments and governmental bodies (crown corporations, contractors, etc.) are realizing that poor performance is hampering their ability to sway public perception and obtain public support for initiatives. In today’s globalized and highly technologically driven world, an organization’s success, and more often their failures, are broadcast to a wide audience thanks to social media. Negative perception of a public sector organization could have significant impacts on an entity’s reputation and operations, as well as on the region’s economy, since the underlying current of the public sector is political and “in such an environment, any factor, however small, that can blunt a country’s…competitiveness is bound to have much graver ramifications today than in the past” (Haralambides, 2017).
Other than economic impacts and political ramifications, the growing interconnectedness of the public sector worldwide enables the sector to have an impact on global socioeconomic disparity and the climate crisis (both of which know no borders) through connected policies at various levels of government. “In the public sector there is certainly a direct correlation between the behaviour and skills of leaders and their ability to carry out the transformation of the various entities” (Athabasca University, 2022, pg. 26. para 7); with this concept in mind, public sector leaders are situating themselves as the enablers of the transformational line of thinking where government services are being reimagined or reframed to meet the demands of the growing expanse of population demographic. Today’s population demographic mix consists of “four generations at work within the public sector and five to six generations of citizens, each with some unique values and expectations” (Athabasca University, 2022, pg. 21. para 3); add to this the increasingly evident global disadvantage of women, as well as the call on organizations, individuals and the global population to reevaluate our understanding of Indigenous peoples, it becomes clear that “addressing the increasing complexity of needs, expectations, and behaviour of citizens requires different types of leadership” (Athabasca University, 2022, pg. 21. para 3) than have previously been present or at play.
The transformation of the public sector demands leaders be “responsive, transparent, innovative, collaborative, and accountable” (Galley et al., 2013). Leadership competencies are intended to provide leaders with the necessary “knowledge, skills, abilities, and other characteristics, required to effectively lead people toward the achievement of organizational goals…[but] the development of [the] self-determination theory, suggested that many current leadership competency models contain outdated approaches to motivation that undermines their intended purpose of leadership effectiveness” (Fowler, 2018). The self-determination theory when combined with transformational leadership satisfies the need for “autonomy, competence, and relatedness [highlighting] the link between transformation leadership and followers’ job satisfaction, self-efficacy, and affective commitment to the leader” (Kovjanic et al., 2012).
A leader’s ability to create an organizational culture that supports trusted relationships and encourages psychological safety enables an organization’s people, followers or future leaders, to become invested in the organization’s vision and outputs. When a public sector organization’s people become invested in outcomes, the work environment is better able to tackle sector challenges through responsiveness, transparency, innovation, collaboration, and accountability (Athabasca University, 2022, pg. 21. para 2). Alignment of personal and team values, a fundamental component of values-based leadership, with organizational values results in a “highly motivated, engaged, and productive workplace” (Athabasca University, 2022, pg. 7) that becomes the heart of the transformational collaborative cross boundary leadership necessary to mitigate global challenges while capitalizing on unique organization or sector strengths, while keeping public perception or interest high.
Private Sector Organizations
As hinted to above, private sector leaders have more freedom to operate their organizations with best practices, thus assisting with the triple bottom line, or rather the profit, people, and plant concept. Private sector organizations are not without their challenges and ‘freedom’ is a relative term; while these organizations may not have layers of bureaucratic ‘red tap’, they are held responsible for their operations, and leaders their actions, through global governing bodies or agreements. There is public expectation, as well as across the other sectors, that private sector organizations will follow social and business norms and play a pivotal role in addressing the global challenges such as climate change, socioeconomic disparity, sustainability, and continued economic growth. Private sector organizations are paying close attention to United Nations (UN) work and decrees as the UN focuses on worldwide challenges and strives to better the global community; while private sector organizations are not mandated to follow UN agenda items, it is widely accepted that in today’s technologically driven society (think social media) not adhering or considering UN priorities could have serious impacts on an organization’s future viability. Private sector challenges can be tackled through Corporate Social Responsibility (CSR) initiatives that are rooted in environmental sustainability, humanity, and economic prosperity. The UN considers CSR as “a form of self-regulation by businesses to ensure they are in compliance with both the law and ethical standards. [It] includes a focus on human rights, protection of the environment, labour issues, and anti-corruption measures” (Athabasca University, 2022, pg. 26. para 1).
As with leadership in the public sector, a private sector organization’s ability to be successful in its initiatives and sphere of influence is “heavily dependent on an organization’s ability to align activity with dominant corporate objectives” (New et al., 2002). Alignment can be a challenge as the sector can struggle with having “influential leadership, harmonious partnerships, shortage of investments, exhaustiveness and complexity of interlinkages among the goals and their targets, and lack of monitoring and evaluating methods for assessing the progress of implementation” (Rashed & Shah, 2021). Leading with CSR in mind requires organization leaders to have a deeper understanding of the interconnectedness of their behaviour, impacts on others, and outcomes of the organization. These leaders need be able to not only see the bigger picture but also sell it; this foundational aptitude hinges on a leader’s ability to communicate effectively and transparently with humility and appreciation while modeling the way through their steadfast values. “Values-based leadership, authenticity, and the ability to build and sustain meaningful relationships are crucial to the goal of sustainability. As described by George and Bennis (2003), authentic leadership refers to self-actualized individuals; they are self-aware and consistent in their behaviour. They are the same person in both their public and private lives. And, according to Kouzes and Posner (2012), they lead with the heart” (Athabasca University, 2022, pg. 27. para 1).
Individuals who center their leadership style around accountability, respect, kindness, authenticity, collaboration, and empowerment will be able to have the largest impact on the challenges facing the private sector today. Relying heavily on their moral compass or servant-leader characteristics, while not losing sight of the need for personal growth and self-reflection, will continue to propel private sector organizations forward in the desire to lead the way and champion change across the sector in the drive toward a better, more sustainable, tomorrow.
Not-for-Profit Sector Organizations
Not-for-profit (NFP) sector organizations struggle with the same global challenges faced by public and private sector organizations, but at a more localized community level. Long-term sustainability for standalone NFPs is a serious threat to sector viability as much of an NFPs funding is dependent upon donations from the community, investments from the private sector, and or grants from the public sector. As the external environment, locally and globally, drives change, NFPs are not immune, updated “strategic business skills and new ways of doing things are critical for organizational survival. These new and alternative ways of working include the use of partnerships, restructuring the organization, and the creation of social enterprises” (Athabasca University, 2022, pg. 31. para 1). Tied to sustainability, is an NFP organization’s ability to diversify their workforce demographic; NFPs historically have a large demographic of educated white women as organizational leaders and in their workforce. As generational shifts occur, an NFP organization must ensure that plans are in place to assist with future proofing their workforce while diversifying its demographic.
For an NFP organization to be sustainable in its sector, sustainability must start with an organization’s own internal culture. Leaders must have values that support or mirror the organization’s goals or intent, it is “crucial for leaders to inspire their employees through the articulation and manifestation of a shared vision” (Athabasca University, 2022, pg. 32. para 6). To mitigate the challenges that the NFP sector is experiencing, leaders must embrace a culture of ‘shared leadership and empowerment’ that has been built on a foundation of trust. Positivity and optimism during difficult business situations convey to NFP organizations that its workforce is resilient and that whatever the challenge, the organization will weather the proverbial storm together. Much like the other sectors, NFPs depend on its leadership to be values-based, whether its leadership is informal or formal, a tall or flat hierarchy, a governing board, or a mixture of all. NFP leadership need to be able to think strategically about its operations to allow for collaboration and the metamorphosis of skills or knowledge to occur; this ability to leverage new knowledge, skills or external environment tools (such as social media) assists with an NFP organization’s goal of sustainability and desire to have an impact locally or broader.
Turning traditional operations on its head and driving change can be overwhelming, especially when new operational models drive toward risk in an attempt to capitalize on it. As an example, “climate change in Australia has become a political risk (for political parties) and a physical, transitional, and regulatory risk for businesses. Not-for-profits (NFPs)…[such as] Climate Alliance Limited, have acted in the absence of national climate risk policy, to support businesses to become better informed to manage their exposure to this risk, and helping them to set their own commitments and pathways to low and net zero carbon businesses…Climate Alliance Limited has done this through its interventions of (1) sharing case studies (best practices) on successful transitions to a low carbon business model and linking climate risk to business risk; (2) bringing thought leaders (advocacy) from the Bank of England and UK Prudential Regulator into the Australian finance and business sector; and (3) by offering a program (reward and recognition), showcasing how business leaders have and are adapting to climate risks and capturing business value” (Scheltus et al., 2021).
In the NFP sector, “a growing emphasis in recent years on improved governance and accountability and balancing competing stakeholder demands has intensified the focus on leadership capabilities” (Bish et al., 2022) leading to organizations shifting from a service-oriented focus to a user-centered approach. This fundamental shift in approach has and will continue to morph how NFP organizations, as well as public and private sector organizations, rethink their outputs’ “development, design, and accessibility…[from a] ‘one size fits all’ service [to] a user-friendly/client-centred approach” (Athabasca University, 2022, pg. 17. para 2) in order to mitigate risk, and capitalize on the sectors unique strengths and ability to be the catalyst for tangible change at the local and global levels.
Organizational Strategy in a Globalized World
It is evident that in today’s globalized business landscape, no sector can standalone. Organizations in each sector, public, private, and NFP, are dependent upon each other or connected in some form when facing the global challenges on today’s world stage. Climate change, socioeconomic disparity, sustainability, pandemic recovery, among others, cannot be reversed, eradicated or course corrected if sector organizations are unable to collectively agree on the challenges, collaborate transparently, and partner across sector borders willingly to be change catalysts. “Today's global economy has created a more complex and dynamic environment...with the inception of Internet-based business, cross-border trade agreements, the ease of international travel, and the like, [organizations] with solely domestic operations serving exclusively domestic client bases are becoming increasingly rarer. The global environment [has] changed the way business is conducted…leaders who can effectively manage [the] complex, changing, and often ambiguous global environment are critical for [an organizations’] future effectiveness” (Caligiuri & Tarique, 2009).
“Achieving social purpose outcomes requires relationship building and the inclusion of diverse stakeholders…along with a commitment to sustainable growth” (Athabasca University, 2022, pg. 18. para 4). The desire to ‘make the world a better place’ is the catalyst for cross sector partnerships; these partnerships capitalize on individual sector organizational success through bringing the best leadership competencies or strategies to the partnerships. Cross sector partnerships enable organizations to be more open, transparent and receptive to new ideas; knowledge transfers of strategic leadership skills help sustainability. Powerhouse leadership competencies, such as client engagement from the NFP sector, accountability from the public sector, and operational efficiencies from the private sector, lay the foundation for cross sector partnership success and innovation.
A dynamic global environment demands dynamic leadership; “the acceleration of globalization has created a chaotic state of change as businesses struggle to adapt to new paradigms of leadership. The established tried and tested approaches may no longer be effective [when applied to] a global context” (Robertson & Harvey, 2008). Leaning into values-based leadership in times of change can help stabilize internal culture and therefore partnerships; remaining resilient against negative external influences will allow for sector organizations to have a meaningful and value-add impact through their organizational or partnership outputs. Long-term, organizations, across all sectors, will need to invest in their leaders as success in the global environment is entirely dependent upon how capable of a leader or leaders are at the helm. Organizations that understand that ‘capable’ no longer only encompasses a leader’s business skillset, but now also includes emotional intelligence, behavioural insight, and self-reflection attributes, and can shift the organizational model to breed these types of leaders going forward, stand to position themselves in a more favourable light for long-term sustainability as future shifts in the global environment occur.
Conclusion
“Global leadership development must be driven by an organization’s global business strategy…as cultural and business complexity increase so does the demand for a global mindset” (Cohen, 2010). Dr. Gary Ranker (2022) defined a global mindset as being a leader’s ability to step outside one’s base culture and to understand that there is no universally correct way to do things. This concept lends itself to the ideals of values-based leadership, which leverages the unique and often very personal ideals or values of an individual leader. If comparing global mindset with values-based leadership, it could be surmised that values-based leadership may also fall into the category of understanding that there is no universally correct way to do things as a leader’s personal values are unique to them.
Terrell and Rosenbusch (2013) suggest that globalization is driving an increased need for leaders who possess global leadership competencies; leaders need to understand the importance of cultural sensitivity, relationships and networks, and a curiosity or desire to learn, they need to lead with openness and can develop and learn intuitively. All of which enables them to lead effectively amongst their organizations, their sector, and across partnerships. The burden on these leaders and the leaders of the future is heavy. The current global environment and the solving or betterment of its multitude of crises such as climate change, socioeconomic disparity, sustainability, gender equality, and so on, has and will have significant social, political, and economic implications; changing the course on these global challenges will take a collective effort and a willingness for a global transformation. This paper discussed the impacts of globalization on the public, private, and NFP sectors, outlining sector challenges within the dynamic global environment. Leadership values, skills and or competencies necessary to address these challenges while taking advantage of opportunities and capitalizing on sector strengths rounded out the discussion and showed the interconnectivity of not only the three sectors but also the leadership styles required for each.
As a woman in leadership, with four young daughters, and as a public servant, I have an invested interest in seeing these global challenges addressed. Athabasca University (2022, pg. 14, para 3) GOVN500 Governance and Leadership course material suggested that a migrating “Λ” flock of geese best represented the leadership model necessary for leadership success now and in the future: “when the lead goose tires, it drops to the end of one of the arms to re-energize in the slipstream of the flock. Another goose assumes the lead, and over the course of the migration every goose will have the opportunity to lead. The younger geese do not immediately take the lead role but learn from the others on the journey. At some point, they will instinctively take the lead”. In my career, I am positioned to become that lead goose, leading the way for the younger geese, teaching through modeling the behaviour needed to successfully get to an end goal while remaining true to myself. The younger geese are my daughters, and through my modeling of, advocating for, and adherence to my values, it will help prepare them for when they become the lead goose. The strides made by today’s leaders toward the global crises, and the partnerships or new dynamics that have been or will be forged in and or across sector organizations as a result, will have impact on the future leaders of tomorrow. When reflecting from my own childhood and the global mindset that was present in the late 1980s and early 1990s compared to the global mindset that my daughters and their peers have today, it provides hope that maybe, just maybe, we can leave the world a little better than we found it.
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