Ever since we opened our doors to trade, we have
become increasingly interdependent with our trading
partners. In recent times, this phenomenon is
exacerbated by the supply chain economy we
co-created around the world. So, the world is at
our doorstep and the global village is no longer a
concept. The physical distance among people is
getting shorter everyday. However, are we really
getting closer to each other?
Our business strategy around the globe is often tied
to our foreign policy. And our foreign policy is
dictated by the way we see ourselves.
The U.S. culture is mainly an individualistic
culture. We see ourselves as lone rangers. Our
movies are often about an individual “hero on a
white horse” that comes into town and saves the
day. We believe that we are the only ones who can
save the world from its demise. As a “superpower” of
the world, we believe our way is the right way and
our values ought to be universal ones. Since the
rest of the world has been adapting to us for so
long, that made it easy for us to see our privilege
as a birth right.
However, as the world becomes smaller and our
relationship with other countries becomes more
complex, we must have a new strategy to win friends
and influence people around the globe. Just by
beating our enemies into submission with our "super"
weapons or coercing our allies into loyalty with our
money has not won us any friends or lasting world
peace. Since we often operate from an
individualistic point of view, we believe we can
single-handedly create a new world order according
to our ideology. This is a strategy that we can no
longer afford.
To find a new way to lead in this world, the U.S.
needs to move away from “going it alone” and take a
more collective and collaborative stand in the
world. In order to become more collaborative in the
world, we must be willing to share our power as a
leader. This has proven to be very challenging for
a nation that is built on its "superhero" psyche.
In the meantime, the world is shifting. Due to
years of redistribution of wealth, education and
skills, there is new a crop of power centers on the
horizon. Other nations may still look to the U.S.
to lead, but they are no longer willing to roll over
like puppies. It is time for the U.S. to join the
world but not to superimpose itself on the
world.
Similar to our foreign policy, we have been managing
our organizations and our businesses around the
world as superheroes. We think our businesses are
global. But are we truly global, or are we just
everywhere? The reality is that our brand of
globalization is often nothing more than
Americanization.
For every force that moves toward “globalism”, there
is a counter force that moves toward “nationalism”.
There is a loud section of our society that believes
that “Buy American” is an act of patriotism.
However, what is the definition of an American
product anyway? Does it mean the product has to be
made by American workers in the U.S.? Does it mean
that the company needs to be owned and operated by
Americans? Or does it mean that the profit has to
stay within the U.S.? Sometimes this “Buy American”
sentiment is part of that counter force to the
unstoppable tide that sweeps across the globe
wherever businesses can find better and cheaper
resources to make products in order to satisfy the
insatiable consumer appetite. We are those
consumers. Can we still take our frustrations out
on Japan, China, or India? Who next?
Ever since I started in my international marketing
career and later became a global organization
culture consultant, I noticed U.S.-based business
organizations have not moved away from the
“superhero” model very much. At the beginning,
“going international” meant selling our products
overseas. I remember General Mills trying to sell
cake mix to Japanese housewives when the average
Japanese household did not even own an oven. I
remember John Deere trying to sell China tractors
when the average Chinese farmer's notion of success
is to have lots of children living together and
working around the farm. They certainly would not
put their children out of work by replacing them
with a tractor. So they used the tractor as
transportation instead of farm equipment. Our
one-size-fits-all mentality and strategy did not
work then and continues to fail now.
Next, we built manufacturing facilities overseas in
order to supply our overseas market. We sent our
employees overseas to manage and control the
operations. Even though our products might have
changed to fit the local market, the way we operate
has not changed. Many of our expatriate managers
could not speak the local language and had to
collect local intelligence through translators’
filters. Then we decided it was quicker to enter
the foreign market by buying or merging with a
foreign company since they know the local market
better. However, we continued to try to “convert”
our foreign staff to our way of running the
business. Lastly, many of us started to push our
entire supply sources out of the U.S. in order to
feed our domestic consumers’ appetite for cheaper
products. While we have become totally dependent on
our foreign suppliers to keep our domestic
businesses going, we still believe we are the lone
rangers.
We talked about global partnering. However in
reality, we continue to see our foreign counterparts
as less than competent and resistant to conform to
our standards. Our global partners often felt their
ideas being devalued and their cultures being
disrespected. Our headquarter-centric attitude and
behavior continue to widen our power distance and in
turn perpetuates the perceived "Americanization".
As we continue to grow closer to the world, we
cannot afford to think and act as if we are the only
ones who have the great ideas and the resources to
meet customers’ needs all over the world. If we
don’t shorten the power distance among all parts of
our global operation, we will have wasted valuable
talents and resources, and eventually lose the
competitive advantage in the global market.
Since there are increasing numbers of power centers
in the world, our foreign policy as well as our
global business strategy must strive for more
collaboration, mutual benefits, and balancing and
sharing of the power. In the process of
globalization, national boundaries are becoming less
important. Holding onto our national identity
without strengthening our connection to the world
will make us weak and irrelevant. On the other
hand, today’s corporations are in a perfect position
and have the obligation to be a major player in
helping us responsibly and strategically utilize the
global resources and raise the collective standard
of human lives on this planet. We can succeed
without shedding any more blood or increasing our
national debt.
Becoming truly global is the only way to help
sustain this planet.