Diversity is high on the agenda, yet we still see something different in the boardroom, where more often than not, boards are filled with individuals whose nationality only matches that of the country of the headquarters. FTSE boards are filled with British nationals, DAX boards are filled with German nationals etc. It is clearly challenging to establish a global mindset in the boardroom.
In this podcast, Dr Sabine Dembkowski, Founder and Managing Partner of Better Boards, discusses the issue of establishing a global mindset at the board level with Thomas Kipp. Thomas served on the board of Deutsche Post DHL and Aramex and worked and lived in Europe, North America and Asia. He is the newly appointed CEO of Naquel Express.
"Be respectful and authentic"
Thomas believes his upbringing contributed to his ability to adapt quickly to different cultures. He explains that being curious and open-minded to other cultures enables you to really understand how things are done. His best advice is to be respectful and authentic.
"It's important to try and understand how you can leverage a global footprint"
Thomas gives examples of this when working in Japan, where establishing trust takes time. In the United States, he learned to present ideas as if they were coming from the local teams, making it their idea and their success. In Spain, he found that Spanish people were not so comfortable speaking in English, so allowing interludes for speaking in their own language (letting the emotions and the Southern European passion out), then reverting to English, bringing everyone together again, created more focus. Appreciating the local business environment enables small 'tricks' to have a big impact.
"You will find various angles of difficulty in creating… …the same level playing field as if you were dealing with business matters in your home market"
Thomas feels that the first difficulty in bringing a global mindset to the boardroom is posed by simply practical reality. In any given country, it is likely that not too many board members will have lengthy, practical, work experience in another country. He states that only around 4% of the world's population has ever left their home country to work for a lengthy period of time.
"We say we're operating in international markets, but it doesn't really show in the way we're running the company"
Thomas points out that running a business with an international element is a clear strategic decision. Practically, that decision needs to be carefully thought through in terms of what it will mean for the organisation, for designing or redesigning the leadership team, and what it will mean to integrate the international business into the company setup actively. He suggests that the leadership team and board must represent the international reality.
The three top takeaways from our conversation are:
1. It is a serious strategic and business undertaking to expand business internationally. There should be a clear conscious effort to reflect this in the leadership and organisational setup, from the boardroom down to the shop floor
2. On a personal note, board members need to overcome insecurities, immerse themselves in the international business environment, and make a conscious investment in understanding how to better leverage their international capacity and capabilities for the success of the company
3. Members must stay curious and open-minded and try to understand how to become more effective in other settings because working on an internationally composed board can be extremely rewarding.