International & Cultural Aspects of Leadership University of San Diego – June 3, 2011 Tony Rodríguez C-Level executive & independent business advisor TonyRodriguez@Alumni.Princeton.edu Twitter: TonyRod79 Tony Rodríguez -Career progression & key roles Staff Accountant – CPA (Coopers & Lybrand) – NYC, Northeast Corporate Planning Analyst (Philip Morris) – NYC & Latin America Director Corporate Planning (Seagram) - NYC Director Finance – Seagram Asia Pacific (Hong Kong & Asia-Pacific) VP Finance & Planning – Seagram Europe (London & Western Europe) SVP Chief Financial Officer - Seagram Global SVP Global Strategy Officer - Seagram Global Global Development Leader – ABSOLUT Vodka Partnership - Sweden Global E-Business Leader - Seagram Global – “Silicon Valley” EVP Deputy CEO & Chief of Staff - Seagram Global SVP Finance, U.S. Operations - Warner Bros. Home Video – Hollywood & USA SVP North American Operations - Warner Bros. Home Ent. - Canada SVP Strategic Projects Implementation - WB Home Entert. Independent Business Advisor / Director – Ivy Advisory – San Diego Leadership is….. …defined by the choices you make in response to the challenges and opportunities you encounter along the way. Good leaders are self-aware and adjust to the situation at hand in order to motivate people towards shared goals and optimal performance. AGENDA: Diverse Countries & Cultural Examples Global-9 pilots for strategic business planning Multiple parties/cultures-US/Sweden (ABSOLUT Vodka) Asia-North, China, South Latin America-Mexico, Carrib., Andes, Brazil, Argentina Europe- North vs. South (Latin) cultures. US -East vs. West; CA=regions, even So Cal=LA/OC/SD GLOBAL Initiatives with LOCAL feel Business Planning Process Launch Employed 9 very different pilots to learn about: Market & organization size and capabilities Diverse Geographic & Cultural implications Local business and strategic needs Road tested model & people before global launch GLOBAL Initiatives with LOCAL feel Key Lessons: “Not One-Size-Fits-All” Some customization is vital for effectiveness Tailor quantity & nature of requirements to smaller markets ability & scope of strategic business needs. Every market benefits from gradual roll-out: Focus initially on high level strategic questions which trigger responses that (eventually) lead to a plan. MULTIPLE Parties & Cultures U.S. (Seagram) and Sweden (ABSOLUT Vodka Co.) ABSOLUT (elite spirits brand) holds “beauty contest” to determine their next global distribution partner Seagram “wins” right to distribute, but making the partnership work effectively takes time & effort. Key Results: 10 year partnership builds a US brand into the #1 global premium vodka; profitable for all parties. ABSOLUT Co. & management are “First Responders” when Seagram company is put up for sale; “brothers”! MULTIPLE Parties & Cultures Key Lessons: Take time to know & like each other Learn each others business and ethnic cultures which can influence long-term business priorities/needs. Engage in cultural practices to show respect, “good faith” and learn “what makes people tick” Focus on developing personal relationships before diving into business terms (typical US approach) Emphasize long-term perspective & flexibility to make the right trade-offs to further the partnership. ASIA – North, China, South North (Japan & Korea) – more direct style; be ultra- sensitive to historical conflicts (military & political). South (Thailand/Singapore) – more “Latin” style: less rushed, more “social” & fluid-expect changes. Business community dominated by “ethnic Chinese”. CHINA = many different regions/cities Capitol (Beijing) – strict/govt. control vs. frontier towns Coastal (developed) vs. inland (rural, less sophisticated) ASIA – North, China, South Key Lessons: No region is homogenous, evolving fast Requires extra effort to visit and learn from the locals about their specific culture, taboos and preferences. Should not make judgments using Western “lens”; what is rude & barbaric in the West may be polite/courteous, and vice-versa-respect differences even if not your cup of tea. LATIN AMERICA – Brazil & Arg. Various sub-regions with distinct features: Mexico/”NAFTA”; Caribbean, Andes, Southern Cone Argentina: General Manger for a month “Forrest Gump” transformed into “Che” Customer visits & night-time cultural immersion: tango! Brazil: Town Hall meeting during unfriendly take-over French acquirer with vague communications: “mulher?” EUROPE – No/South; West/East North: England, Germany, Scandinavia Takes longer to warm up, but more permanent Direct, no-nonsense without intent to be “rude” South (Latin): Italy, Spain, Portugal, France, Greece More extroverted (dramatic) with greater personal / family influence on business affairs. Example: Ricasoli winery (Italy) & his 3 sisters United States: East/West Coasts East Coast expectations vs. LA “giving good meeting” California’s different regions-North (SF) vs. South “Southern Cal” = 3 counties (LA, OC, SD), each with their own coastal vs. “inland” cultures & industries LA-Entertainment, CPG; “everything goes” OC-Banks, Large Industrial; more formal SD-smaller, bio-tech, life sciences; entrepreneurial RECAP Key Learnings: Don’t assume you know anything – find out for yourself with the people you are dealing with. Stay flexible and adapt to work with cultural & personal needs to align people towards common goals. Road test global or regional projects w/local venues. Release products/projects in evolutionary approach to incorporate feedback and continuously improve. RECAP Key Learnings: Engage your partners to learn about them and teach them about “what planet you come from”. Treat every interaction as a potential long term relationship; invest time & effort accordingly. Use your sense of humor and learn to appreciate others, especially if they are different than your norms. Have fun… since corporate life is no “dress rehearsal” and it can be over before you know it.