43
José Santos José (Joe) Santos Kuala Lumpur, 3 December 2015 Managing The Global Enterprise Organizational Integration
José Santos
José (Joe) Santos
Kuala Lumpur, 3 December 2015
Managing The Global Enterprise Organizational Integration
José Santos
In a “Global World”, ...
Dispersion of world-class lead user knowledge.
José Santos
Created in the World
In a Global World...
José Santos
In a “Global World”...
Leading from the World
Leading from one building
(… in Shenzhen, 2006)
(… in Hong Kong, 2011)
(2009-2013)
(≈1987-2003)
(… in Brussels, 2015)
José Santos
In a “Global World”...
Leading from the World
(Source: Santos, HBR 2007)
José Santos
ü Interconnected, Interdependent, Integrated
ü International specialization ü Dispersion of world-class knowledge
ü A union ... of differences at a distance ü The performance … of an abstract whole
ü Uncertainty
ü High objective uncertainty ü Very high subjective uncertainty
A Global World: IIIU
(Source: Santos, forthcoming)
José Santos
ü Geography (region / country / site)
ü Business (industry / company / unit)
ü Function (activity)
How global is your “world”? Your IIIU?
What and how are the interactions between your “place”
and other countries? And with the “whole”?
José Santos
Global Innovation
and Competitive Advantage
José Santos
Global Advantage: National or Metanational?
National Metanational
Superior performance depends on the attributes of
national origin
Superior performance depends on the capabilities of the
organisation and management team
(Porter, 1990) (Doz, Santos, & Williamson, 2001)
Projecting to the World Learning from the World
José Santos
National or Metanational, that is the question
José Santos
Global Integration
Across Companies
José Santos
José Santos
1999
2004
(Source: Renault-Nissan Alliance Report 2014)
2014
José Santos
(Source: Renault-Nissan Alliance Report 2014)
José Santos
(Source: Renault-Nissan Alliance, 2005)
José Santos
(Source: Renault-Nissan Alliance Report 2014)
José Santos
Leadership Challenges in a Global World
José Santos
Local Performance
Using local knowledge locally!
José Santos
Universal Performance
Sharing knowledge across borders!
José Santos
Source: Bloom et al, 2012 (worldmanagementsurvey.org)
Universal Performance
Sharing knowledge across borders!
José Santos
Global Performance
Integrating knowledge across borders!
(Source: Li & Fung)
José Santos
Global Performance
(Source: Santos)
Integrating knowledge across borders (and across companies)!
José Santos
The Challenge of Global Integration
José Santos
A “Global Organization” is made of “Local Organizations”
… each evolving in its local environment
Country H Country J Country T Country H
HQ
Country J Country W
HO Operations Operations Operations Operations
Local organizations are tangible and feel real, natural.
Global organizations are intangible and feel abstract, artificial. (National allegiance may become a serious issue.)
José Santos
(Source: IBM presentation, 2008)
What “Being Global” is about ...
José Santos
HQ
Country H Country T
Local Operations
Local Operations
Local
Operations
Local Operations
One Team-at-the-Top*
Global Integration is a Process
How do we (an inclusive “we”) design/decide, coordinate, and control what we do in our units around the world to maximize global
performance? How do we act as a unity and not as a multiplicity?
Global Integration is about collaboration, not centralization. Global Integration is about active local units abroad, not drones.
But it is about “local performance” as a means, not an end.
* The eGLT: “extended Global Leadership Team”
José Santos
This is what the top of a “Matrix” may look like …
Source: Santos, forthcoming
José Santos
Working/Managing Together
C&C(Collocated
& Confluent )
LOCATIONOne Multiple
PLACE
Same
Diverse D&D(Dispersed & Diverse)
(Community, History)
(Space, Time)
(Source: Santos, 2013)
José Santos
Tim Cook, CEO of Apple - Interview, Fast Company, Mar 18, 2015
… or not?
José Santos
Your experience of a “global organization”?
José Santos
Thank you.
José Santos
Organization Integration
José Santos
The Matrix
Country A Country B Country C ...
Project X
Proj
ects
Geography
Project Y
Project Z
(Integration across countries with “project teams”)
José Santos
The “Matrix”
Country A Country B Country C ...
R&D
Production
Sales
Finance Fun
ctio
n Geography
Procurement
(One solid-line and one dotted-line reporting organization – a “tilted matrix”)
José Santos
New organisation structure (1999)
(Source: Teva case study - INSEAD)
José Santos
Global Integration is more about process than structure …
(Source: Teva case study - INSEAD)
NB: This is an example of the generic “ARCI”– for accountable, responsible, consulted, informed – or responsibility assignment matrix.
José Santos
The Multi-dimensional organisation (aka “Matrix”)
Country A Country B Country C ...
R&D
Production
Sales
Finance Func
tion
Geography
Procurement
(Example of a double solid-line reporting organization - in a single business company)
José Santos
Global Integration at Nissan
(Source: Nissan 2002 case study – HBS)
José Santos
President & CEO P. Pistorio
Telecom Periph & Auto
A. Romano
Discrete & STD ICs S. Castorina
Memories C. Bozotti
Consumer & Micro P. Geyres
Subsyst. G. Seragnoli
REGIONS GROUPS/DIVISIONS
Strategic Planning A. Dutheil
CFO C. Ferro
TQEM G. Auguste
Treasurer P. Mosconi
Human Resources A. Dutheil
STAFF FUNCTIONS
Front-end Manuf.
L. Bosson
Back-end Manuf.
G. Seragnoli
Central R&D
J. Monnier
CENTRAL FUNCTIONS
Europe E. Villa
North America R. Pieranunzi
Asia/Pac. J.C. Marquet
Japan T. Onikura
Emerg. Mkts C. Papa
AST A. Cuomo
Communications C.E. Ottaviani
(Source: STMicroelectronics, 2004)
A multidimensional organization in a Manufacturing MNC
José Santos
Country A
Country B
Country C
The geography-function hybrid
(aka “front-back”)
CEO
R&D Production Sales
Procurement Service
Sales Service
Sales Service
José Santos
(Source: Ikea case study – HBS)
José Santos
(Source: Pernod Ricard)
José Santos
Fish do not know water, even if they see it!
