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Developing Our Capitals
for Global Competition
Agus Wicaksono
11 Feb 2012
Agenda
Globalization
Global Competition Landscape
Global Mindset – Ready to Going Global
World Population
1.3+ B
1.1+ B
304+ M
227+ M
191+ M
World 2008
6.69+ Billion
52% Big 5
48%
Going Global - Early Stages
 Traders
 Soldiers
 Missionaries
 Adventurers
What is the Globalization
 The integration of economic,
political, and cultural
systems across the globe
 A Level Playing Field where
all competitors have an
equal opportunity
 Historical and geographical
division are becoming
increasingly irrelevant in a
global market
Thomas Friedman –
The World is Flat
Curse or Nirvana ?
 The dominance of
developed countries
in decision making,
at the expense of
poorer, less powerful
nations ?
 A force of economic
growth, prosperity,
and democratic
freedom ?
http://www.therichest.org/world/poorest-countries-in-
the-world/#3
10 Poorest Countries in the World 2011
NOT ONLY FOR BIG GUYS
Microfinance Goes Global Online
You Can Be a Global Lender with $25
$25
$25
$25
$25
-$1,150 Philippines
CaliforniaSingapore
Spain
Ireland
Unstoppable Reach
Competition Dynamics
Compete Locally
within Local
Business-Market
Compete Locally
within Global
Platform
Business-Market
Compete
Globally within
Global Business
Landscape
 Macro-economic Stability - Investment
 WTO – Trade Barriers
 Comparative Advantage
 Flexibility to React Quickly
 Markets, Businesses,
Institutions,
Individuals
Global Competition
 Technology Creates Global Connections –
faster, deeper, cheaper
 Not Just Around the Corner….
It’s Around the World!
Global Competitiveness
The Global Competitiveness Report 2010-2011:
The 12 Pillars of Competitiveness
The 44th of the Chart
The Global Competitiveness Report 2010-2011
 Inefficient Government
Bureaucracy
 Corruption
 Inadequate Supply of
Infrastructure
Top 3 Problematic Factors
Developing Economies
Trend and Opportunities
 Low-Cost Geography: Off-shoring
 Global Connection & Social
Network: Share and Compete
 The Mesh
 Co-Creation
 Crowd-sourcing
After China and India, what is
the largest nation in the world ?
845 million monthly
active users at the end
of December 2011
Global Readiness
 Global Leaders to influence
individuals, groups, and
organizations that are unlike
them
 Professionals to fully grasp
global business imperatives to
effectively work and lead in
global competition environment
Global Mindset – A Set of Characteristics that Help
Global Mindset
 Combines openness
to and awareness of
diversity across
cultures and markets
 Propensity and
ability to synthesize
across the diversity A.K. Gupta,
V. Covindarajan,
H.Wang –
The Quest for
Global Dominance
Chevron Diversity
 Office of Global Diversity – Vision: To Make
Chevron a Truly Global, Diverse, and Inclusive
Workplace for Competitive Advantage
 Diversity - the mixture of people in our
business, with their variety of backgrounds,
experiences, styles, cultures, skills, and
competencies
 Competitive Advantage - respecting and
valuing the unique talents and characteristics
of each individual and leveraging skills, ideas,
and experience.
Embracing Diversity
BU/Department Objectives
Your Annual Goals
Development Agreement
Diversity Goals
Developing Global Mindset
 Intellectual Capital
 Psychological Capital
 Social Capital
Global Mindset Leadership Institute
Expanding Capital
F. Luthans, K.W. Luthans, and B.C. Luthans (2004) –
Positive Psychological Capital: Beyond Human and Social Capital
Traditional
Economic
Capital
Human
Capital
Social
Capital
Positive
Psychological
Capital
What You Have What You Know Who You Have Who You Are
 Finances
 Tangible
Assets
(plant,
equipment,
patents,
data)
 Experience
 Education
 Skills
 Knowledge
 Ideas
 Relationships
 Network of
Contacts
 Friends
 Confidence
 Hope
 Optimism
 Resilience
* Human Capital and intellectual Capital is sometimes used interchangeably
Intellectual Capital
 Master the World Lingua Franca
 Get Access to and Explore Global Library
 Keep Abreast with Global Business
Dynamics
 Able to Build Global Alliances-
Partnerships
 Manage the Tensions with Local Challenges
 Handle Complex Cross-Cultural issues
 Learn, Un-Learn, Re-Learn
Social Capital
 Understand Cultural Sensitivity,
Inter-Cultural Empathy, yet Ready
to Push the Limits of the Culture
 Establish and Plug In into Your
Professional and Social Network
Globally
 Generate positive energy in and excite
people from different part of the world
 Don’t Wait and See: Influence & Act!
Connect, Create and Contribute
Psychological Capital
 Expose to and Embrace Diversity
 Inalienable Rights: All men are created
equal…Build your strength, know your weakness
Anyone who still thinks the sky is the
limit has no imagination (Franklin P. Jones)
– Confidence, Hope
 Optimism: Develop “Can Do” Attitude
 Resilience: Capacity to “Bounce Back” –
Don’t (Easily) Crack!
Openness to different ideas, and
willingness to work across time,
distance, and cultures
Check Opportunity Matrix
LCG Leverage
Diversity:
Under-Representation
Global Online
Professional Competency
and Integrity
Global
Workforce
Global
Entrepreneurs
The Big Question
Where Do You Want to Go in
the next 10 Years from Now ?
Thank You

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Developing Our Capitals for Global Competition

  • 1. Developing Our Capitals for Global Competition Agus Wicaksono 11 Feb 2012
  • 3. World Population 1.3+ B 1.1+ B 304+ M 227+ M 191+ M World 2008 6.69+ Billion 52% Big 5 48%
  • 4. Going Global - Early Stages  Traders  Soldiers  Missionaries  Adventurers
  • 5. What is the Globalization  The integration of economic, political, and cultural systems across the globe  A Level Playing Field where all competitors have an equal opportunity  Historical and geographical division are becoming increasingly irrelevant in a global market Thomas Friedman – The World is Flat
  • 6. Curse or Nirvana ?  The dominance of developed countries in decision making, at the expense of poorer, less powerful nations ?  A force of economic growth, prosperity, and democratic freedom ? http://www.therichest.org/world/poorest-countries-in- the-world/#3 10 Poorest Countries in the World 2011
  • 7. NOT ONLY FOR BIG GUYS Microfinance Goes Global Online You Can Be a Global Lender with $25 $25 $25 $25 $25 -$1,150 Philippines CaliforniaSingapore Spain Ireland
  • 9. Competition Dynamics Compete Locally within Local Business-Market Compete Locally within Global Platform Business-Market Compete Globally within Global Business Landscape  Macro-economic Stability - Investment  WTO – Trade Barriers  Comparative Advantage  Flexibility to React Quickly  Markets, Businesses, Institutions, Individuals
  • 10. Global Competition  Technology Creates Global Connections – faster, deeper, cheaper  Not Just Around the Corner…. It’s Around the World!
  • 11. Global Competitiveness The Global Competitiveness Report 2010-2011: The 12 Pillars of Competitiveness
  • 12. The 44th of the Chart The Global Competitiveness Report 2010-2011  Inefficient Government Bureaucracy  Corruption  Inadequate Supply of Infrastructure Top 3 Problematic Factors
  • 14. Trend and Opportunities  Low-Cost Geography: Off-shoring  Global Connection & Social Network: Share and Compete  The Mesh  Co-Creation  Crowd-sourcing After China and India, what is the largest nation in the world ? 845 million monthly active users at the end of December 2011
  • 15. Global Readiness  Global Leaders to influence individuals, groups, and organizations that are unlike them  Professionals to fully grasp global business imperatives to effectively work and lead in global competition environment Global Mindset – A Set of Characteristics that Help
  • 16. Global Mindset  Combines openness to and awareness of diversity across cultures and markets  Propensity and ability to synthesize across the diversity A.K. Gupta, V. Covindarajan, H.Wang – The Quest for Global Dominance
  • 17. Chevron Diversity  Office of Global Diversity – Vision: To Make Chevron a Truly Global, Diverse, and Inclusive Workplace for Competitive Advantage  Diversity - the mixture of people in our business, with their variety of backgrounds, experiences, styles, cultures, skills, and competencies  Competitive Advantage - respecting and valuing the unique talents and characteristics of each individual and leveraging skills, ideas, and experience.
  • 18. Embracing Diversity BU/Department Objectives Your Annual Goals Development Agreement Diversity Goals
  • 19. Developing Global Mindset  Intellectual Capital  Psychological Capital  Social Capital Global Mindset Leadership Institute
  • 20. Expanding Capital F. Luthans, K.W. Luthans, and B.C. Luthans (2004) – Positive Psychological Capital: Beyond Human and Social Capital Traditional Economic Capital Human Capital Social Capital Positive Psychological Capital What You Have What You Know Who You Have Who You Are  Finances  Tangible Assets (plant, equipment, patents, data)  Experience  Education  Skills  Knowledge  Ideas  Relationships  Network of Contacts  Friends  Confidence  Hope  Optimism  Resilience * Human Capital and intellectual Capital is sometimes used interchangeably
  • 21. Intellectual Capital  Master the World Lingua Franca  Get Access to and Explore Global Library  Keep Abreast with Global Business Dynamics  Able to Build Global Alliances- Partnerships  Manage the Tensions with Local Challenges  Handle Complex Cross-Cultural issues  Learn, Un-Learn, Re-Learn
  • 22. Social Capital  Understand Cultural Sensitivity, Inter-Cultural Empathy, yet Ready to Push the Limits of the Culture  Establish and Plug In into Your Professional and Social Network Globally  Generate positive energy in and excite people from different part of the world  Don’t Wait and See: Influence & Act! Connect, Create and Contribute
  • 23. Psychological Capital  Expose to and Embrace Diversity  Inalienable Rights: All men are created equal…Build your strength, know your weakness Anyone who still thinks the sky is the limit has no imagination (Franklin P. Jones) – Confidence, Hope  Optimism: Develop “Can Do” Attitude  Resilience: Capacity to “Bounce Back” – Don’t (Easily) Crack! Openness to different ideas, and willingness to work across time, distance, and cultures
  • 24. Check Opportunity Matrix LCG Leverage Diversity: Under-Representation Global Online Professional Competency and Integrity Global Workforce Global Entrepreneurs
  • 25. The Big Question Where Do You Want to Go in the next 10 Years from Now ?