CHAPTER 1

Calling All Leaders!—The Growing Leadership Shortage

Women hold up half the sky.

—Mao Tse Tung


My mother would say, “With your skills, with your languages, you can become the personal assistant of a CEO,” but she couldn’t quite imagine that I would become the CEO myself.


—WiSER Flavia


To achieve goals in a complex business environment, organizations need the best men and women leaders. Leaders are those who practice the art of motivating a group of people to act toward achieving a common goal. The title of leader is earned by demonstrating important qualities associated with leadership today. Peter Economy, an authority in the field of leadership, listed the following qualities of today’s best leadership: decisiveness, awareness, focus, accountability, empathy, confidence, optimism, honesty, and inspiration (Economy 2014). Leadership characteristics can be demonstrated at any level in your career. When organizations consider building leadership pipelines, they actively include talent at all levels who demonstrate leadership qualities in order to prepare them for next level roles.

Today’s business landscape includes considerations of political instability, terrorism, global recession, and concerns of technology replacing jobs. Yet, the top two concerns that have kept CEOs up at night across the globe for three years and running are developing the next generation of leaders and attracting and retaining new talent. Without talented leaders at the helm, who is left to execute strategy, deliver top service, and identify and build out new markets (Conference Board 2018)?

By 2030, the global talent shortage could reach 85.2 million ­people—costing companies trillions of dollars in lost economic opportunity (McLaren 2018). Headlines border on fear mongering:

  • Financial and business services will be 10.7 million ­workers short.
  • Supply chain staff shortages may reach global crisis by 2020.
  • World Bank sounds alarm on logistics worker shortage.
  • In tech alone, the United States could lose out on $162 ­billion worth of revenues annually unless it finds more high-tech workers.

To create solid, sustainable leadership pipelines, organizations align and prepare their current workforce to their future business goals and needs (also known as workforce planning). It is imperative to include diverse talent in workforce planning efforts, resulting in more robust leadership pipelines. One way to create diverse pipelines, is to look beyond the current composition of leaders and include more women. The topic of female leadership is highly pertinent in this critical period of the rise of women’s influence in the world, a threatening shortage of talent and leaders, and intensified globalization. The commitment of both men and women in organizations is key to diversifying leadership pipelines.

Why Do We Need More Women Leaders?—The Business Imperative

How can the stresses of the leadership challenge be lightened? How can projected economic growth and competitive advantage be sustained? We recommend that organizations “fish where there are fish”—that is, harness educated, capable, available yet untapped talent (namely women) and remove barriers preventing them from moving into leadership. In looking at the Fortune 500, only 5 percent of CEOs are women as of 2018 (Zarya 2018). Only when both women and men lead at the top together, organizations can achieve their highest level of performance.

On top of alleviating the leadership crisis, diversifying talent pipelines has some very positive “side effects”—namely, superior organizational results. Organizations that have positive and inclusive corporate cultures and effective talent management strategies achieve better financial results and do better in times of uncertainty:

  • Increasing the percentage of women in senior roles from zero to 30 percent will generate 15 percent more profit ­(Curtin 2017).
  • Innovation intensity which results in more patents, is on ­average 20 percent higher among companies with women in top management roles. (Blumberg 2018).
  • Having female senior leaders creates less gender discrimination in recruitment, promotion, and retention. That gives a company a better chance of hiring and keeping the most qualified people (Noland 2016).
  • A large female presence is associated with higher ­status. ­Fortune’s “most admired” ­companies have twice as many women at the senior ­management level than less reputable companies ­(Blumberg 2018).
  • More than 70 percent of purchasing decisions are made by women. Diverse leadership teams have a greater chance of connecting with the buyer and show stronger customer orientation. Inclusive companies create positive brand image in large and growing diverse target markets. “Leading organizations will embrace diversity as a way to win ‘the next billion customers’—those who are in untapped geographies or have been traditionally underserved” (Donaldson 2017).

While researchers are attempting to specifically discern why companies with more women at the top are performing better, here are a few known data points. One, to reap the rewards of diversity in leadership, organizations will want to focus on having women in top positions (Lorenzo 2017). Two, it is important to have a supportive set of policies, such as child care, education, and non-discrimination, which allows women to maintain their careers in a relatively undisruptive manner. For example, research from Pew Research Center showed that “mandated maternity leave did not correlate to increased female leadership, but more robust paternity leave did” (Pew Social Trends 2015). Three, men and women have different leadership strengths that complement each other contributing to improved leadership performance. Groups like NASA have found that even space missions go better when the crew consists of both males and females (Credit Suisse 2012). ­Similarly, a field experiment with teams of student entrepreneurs that had to start up, sell stock for, and actually run 43 real companies with the goal of maximizing profit and ­shareholders’ value showed that gender-balanced teams outperformed both male-­dominated and female-dominated teams (­Hoogendoorn 2013).

How Do We Get More Women
Leaders?—The Fast Track

In order to accelerate talented women into leadership, working and living abroad is a key development opportunity that more women are recognizing and taking advantage of. Courtney Ellis-Jones of the Forum for ­Expatriate Management noted the increasing trend for young professional women to go on foreign assignments as part of their career development (Roberts 2016). As per the 2016 Global Mobility Trends report, the percentage of women expatriates has steadily increased to 25 percent (BGRS 2016). Many of these women are under 30, doing it solo, or taking their partners with them. Despite the fact that nearly 70 percent of global mobility leaders indicated they use international assignments to develop their pipeline of future leaders, only 22 percent reported that they were actively trying to increase the number of female expats (PriceWaterhouseCoopers 2016). In an effort to support more women to ­pursue working and living abroad, we will share strategies women can use to secure an international role and prepare for success on the job in order to rapidly develop their professional capabilities.

Paths to an International Assignment

Working and living abroad is distinctly different than visiting a ­country or commuting for work. Women in senior-level expatriate roles (WiSER) shared that, although preparation is important, all the preparation in the world can only take you so far. WiSER Jolanda said: “That’s what I realized when I came over to Switzerland really not knowing the Swiss at all. I mean I’ve been skiing on holidays but … that doesn’t mean you get to know the Swiss … You prepare yourself that it will be different, but you can never prepare for how different.” WiSER Anna agreed that it is impossible to prepare yourself for all of the challenges involved in an expatriate assignment. “You do have different working environments … That was something I did find quite difficult,” she said. “But I can’t see how you can possibly prepare for that. You know it is something that you can only really experience by being there.”

While it is impossible to “know” the unknown, tools such as the Internet, social media sites, websites that are dedicated to international relocation, and relevant books and blogs can help you boost your level of awareness and preparedness. Cultural classes can be extremely ­beneficial and help you understand how and why “business as usual” is different in your host country. Equipped with such knowledge, you will have a deeper understanding of why people behave the way they do in your host country. The key to success is not to know everything, but rather to face new challenges and opportunities with an open mind and confidence. Regardless of the type of assignment you may pursue, WiSER Heidi ­provided the following insight, “When you make a move like that, everything is exciting, vibrant, and sparkling, with renewed enthusiasm and excitement. I was very receptive to the move, and therefore people were very receptive to me. Excitement is infectious.”

There are two primary paths to obtain an expatriate opportunity: either you are sent abroad by the organization you’re working for—the organization induced expatriation (OIE), or you find a job in another country on your own—the self-initiated expatriation (SIE). Regardless of the path you select, it is necessary to demonstrate high performance and leadership skills in order to be considered for an international role (Brookfield 2012, p. 16). If you are interested in an expatriate role, it is important to develop a brand that reflects what you can bring to such a role and share your interest broadly. Download the Women Leaders Toolkit from the BEP publishing website for additional tools and resources. Whether you pursue an international opportunity through your employer or on your own, there will be distinct differences, and associated pros and cons (Table 1.1).


Table 1.1 Characteristics of organization-induced expatriation (OIE) and self-initiated expatriation (SIE)


Organization induced expatriation (OIE)

Self-initiated expatriation (SIE)

Categories of assignment

• Talent development focus—work abroad for the purpose of getting a project or opportunity to develop yourself

• Expatriate assignment—traditional, long-term (average two–five years)

• Relocation to another ­country for work

• Permanent/one-way transfers—relocation to another country

• Short term assignment—up to 12 months

• Intra-regional role—covering
­various countries within a region

• Global Nomad—move from nation to nation, typically without returning to home country

• Staffing focus—hired to work abroad to meet a staffing need.

• Permanent/one-way ­transfers—relocation to another country

• Short-term stay—­example, study abroad

• Intra-regional role—covering various countries within a region

• Global Nomad—move from nation to nation, ­typically without returning to home country

Being considered as a candidate

• Expatriate selection processes often poorly structured

• Less accessible to women because of home country barriers

• Companies are looking for alternatives to traditional expatriate roles

• Challenging to identify ­appropriate roles

• Good way to overcome home country barriers

Moment of expatriation

• Indefinite period of time to be considered for such roles

• Timelines can be determined and managed

Regulatory environment

• Organization sponsors work permits, visas, tax equalization, and so on

• Have to be self-managed

• Host country employer has to justify international hire

Level of support

• Greater security and organizational support

• Limited security and ­organizational support

• Relocation for international
work, as well as the return home have to be self-managed

Cultural ­adaptation

• Takes more conscious effort because traditional expatriates often work and live in expat circles

• More natural adaptation due to intensive interaction with host country nationals

Networking

• Active career management within the organization (known territory)

• Active networking in the intended host country (unknown territory)

Mobility

• Build career within the ­organization

• Mobile across organizations


Sources: Vance, McNulty and Chauderlot (2011); Hu Mo and Xia Jian-Ming (2010) and Mercer (2018).

The Benefits of Working and Living Abroad

Many questions will undoubtedly cross your mind when considering an expatriate role, with a central question being: “What do I stand to gain, or lose, from living abroad and working in a different culture?” The WiSER overwhelmingly indicated that they believe that expatriate opportunities help individuals grow, both personally and professionally (Figure 1.1). This sentiment is partially attributed to the fact that they increased their network and developed competencies and skills at a hastened pace, in a unique way that enriched growth, outlook, and personal life as well. ­Significantly, the majority of the WiSER we interviewed were married and/or had children. Those with children suggested their international assignment provided their family with a valuable experience that could not have been achieved any other way. Although the WiSER shared with us some of the challenges they faced, they ultimately agreed that the ­benefits ­outweighed any negatives.


Image

Figure 1.1 Was your career enhanced by your international assignment?

The Society for Human Resources Management (SHRM) conducted a similar survey and asked assignees, “How far was your international assignment helpful for your personal and professional growth?” (SHRM 2004). More than 90 percent of the respondents indicated their assignment had been very helpful for their professional growth, especially in terms of global awareness, cultural workplace savvy, leadership skills, and career development. In addition, assignees indicated that leadership skills and managerial skills could be developed more efficiently during long-term expatriate assignments, as opposed to shorter assignments. As far as personal growth was concerned, more than 95 percent of respondents rated global assignments as very helpful, especially in increasing or creating cultural awareness, strengthening the ability to adapt and increasing flexibility.

If you were to ask people what their most valuable asset is, more often than not, the most common response would be a material item, most likely their house. In all actuality, a professional’s most valuable asset is their earning potential. International experience is an undeniably positive investment to grow one’s earning potential as it increases skills, capabilities, and experience. During expatriate assignments, the WiSER acquired and/or enhanced skills, knowledge, and competencies that were valued upon return, and their experience made them more valuable to their own organization, while also attracting the interest of other organizations. In short, it enhanced their careers. Let’s take a look at the five most frequently mentioned benefits of working and living abroad.

Accelerated Learning and Development

Working and living abroad offers a unique, accelerated learning experience that is difficult to find otherwise. The current pervasive philosophy around learning and leadership development is the 70-20-10 model developed by Lombardo and Eichinger in 2000. The model demonstrates that 70 percent of learning is provided through the use of challenging assignments and on-the-job experience. An expatriate role is an ideal opportunity to develop leadership capabilities because it offers many challenging work experiences, exposure to new thinking and approaches, constant training on the job and an opportunity to build relationships and expand networks around the world. This is the essence of the new leadership profile.

“The fact is, you will be absorbing a lot of information very quickly.” WiSER Andrea said. “It’s about being able to learn something new and understand something differently than you did before.” She indicated that gaining a broad range of experience was the true value of working abroad. WiSER Andrea added that, if she had remained in her native ­Brazil, she would have needed to work at many different companies to accumulate the variety of experiences she gained through one international assignment. “This [fact] that you deal with different people in their own environment … that’s very rich,” she said. “It’s different than if you always stay in your own country.” WiSER Hermie agreed. “It’s a great learning opportunity, both personally and professionally,” she said. “It’s a quantum leap in learning. What you would learn over many years, you learn in a very short span of time.” Meanwhile, WiSER Julie Anne revealed that she had unique experiences in Latin America she couldn’t have gained through a domestic assignment. “In Latin America the organization is smaller, and it’s a growing operation, and [that] is when there’s a lot of what we call white space or opportunities that haven’t been tapped yet,” she explained.

So, even as a middle management person you’re making decisions that would ordinarily … be made by people two levels higher than you. The learning is so much richer in that kind of environment where there’s a lot of freedom and flexibility to make decisions and make an immediate impact on your business.

Competitive Advantage

For many of the WiSER, the competitive advantage of an international role was obvious. Acquiring and/or refining skills and competencies during an international assignment is not only beneficial within your current organization, it also positions you as an appealing candidate for other organizations. This is confirmed by a study where expatriates were asked what the career impact was of their international assignment: 40 percent said that they were promoted faster than their peers, 36 percent indicated that it was easier to obtain new positions in the organization, and 16 percent indicated they changed employers more often, thanks to their improved competitive position (Brookfield 2012, p. 16). WiSER Anne noted that, within two years of her return to the United States, she was headhunted for the job of president and CEO of a global non-profit organization. She recalled: “They were looking for someone who actually had a lot of hands-on experience overseas—and I had almost 20 years of it—and someone who would help run a very large organization, and I had done that with my chief of staff job for a year and a half.”

Leadership Skills

Working and living abroad cultivates leadership skills by testing leadership capabilities in many ways. The popular theories around situational leadership, as developed by leadership gurus Paul Hersey and Ken Blanchard, state that there is no single best style of leadership. Rather, successful leaders are able to adapt their style to the task, person, or ­situation at hand. When operating in a foreign environment situational leadership takes on a whole new dimension. “I believe that an international assignment can accelerate my career because not everybody has had that experience,” said WiSER Allyson. “It has taught me valuable skills especially on the communication front, how to motivate and lead different types of individuals from vastly different backgrounds.” The next generation of leaders will be required to possess a global mindset because they will be managing an increasingly diverse workforce. The characteristics required for global leadership are learned, and they can be developed rapidly in international roles. Working and living abroad, you will encounter different ways of thinking, communicating, collaborating, leading, and accomplishing small to large goals, just to name a few. This forces you to reflect on your own ways of doing and being. “I believe an international assignment can accelerate or enrich your career because it makes you a better person,” WiSER Stacy indicated. “I think it will do wonders to enhance your career. It will make you more open and more aware of your own assumptions and how at times they may be false.” Intimately experiencing new cultures will lead to a greater understanding and appreciation for different viewpoints and approaches resulting in improved methods of collaboration and issue resolution. “An international assignment is absolutely worthwhile,” said WiSER Nina.

It will lead to better cooperation and problem solving that you cannot solve in just one nation. It will lead to a different kind of society because people who are internationally skilled … and have been exposed to an experience in another country, have this certain openness that I think is needed. We have this vision of the global citizen … maybe somebody who can, without forgetting about his own background, nationality, or ethnic identity … still be open. I would go as far as saying that this may lead to a more peaceful world.

Financial Rewards

Expatriation packages can be very comprehensive, dealing with many aspects related to your move. There are many resources available to assist you with the logistics of your move abroad, including relocation firms. The issues you may need to contend with may include negotiating your expatriate contract, solving tax issues, or finding a house. Download the Women Leaders Toolkit from the BEP Publishing website for additional tools and resources.

If you receive a comprehensive expatriate package, you may feel as though you have hit the jackpot. After all, when is the last time someone paid for your rent or your car? Bear in mind that as an expatriate, you may incur costs that you typically wouldn’t have. When WiSER Alicia moved to Germany, she found “the biggest challenge we had was, quite frankly, the cash flow. You had to have such a huge cash outlay for everything because this country does not operate on credit as you do in the US.” Whether you are self-initiating expatriation or supported by your organization, be aware of hidden costs and cost of living differentials.

Personal Growth

As the WiSER agreed, there are many benefits to an international assignment. “Absolutely, international experience benefited my career,” said WiSER Nina. “But the greatest benefit was for my personality. I became a much more self-confident, fulfilled person.” WiSER Annes shared: “I definitely took advantage of living far away. I learned that I can live anywhere in the world,” she revealed.

I learned that people across the world are very helpful and receptive, and caring, and that it depends on how you approach them. I realize that the world is a really small place but a really interesting place. I have learned a lot and I really have loved the journey.

As per a recent HSBC report, 52 percent of expats report having a better overall quality of life (BGRS 2016). “Personally, it gave me the opportunity to meet some needs and motivations that I had—that have really made me feel … much more content,” said WiSER Diane. “And as a person I feel more satisfied with my life.” Additionally, when you are living in a different country—with different norms, values, and ways of doing things—you start appreciating many of the things you associate with your native country. WiSER Carrie. “It definitely shaped our lives. We know people now. We know cultures now. We know a lot of things we never would have known before—and your view of the world, it does change, and it also helps you truly appreciate what you have at home.” She added that she has learned to recognize many of the assets of her native country. “Canada is a fantastic country,” she said. “I always thought it was and I do even more so now.” Being farther away from home can also strengthen relationships with family and friends. An old proverb says, “Absence makes the heart grow fonder,” and this is very true when you live abroad. As WiSER Andrea discovered. “The positive thing is that some of the relationships actually grew stronger, with my parents, with my sisters, because we don’t have daily issues,” she said. Moreover, with modern technology it is relatively easy to maintain and nurture contacts at home. As WiSER Pauline shared: “The international, expatriate experience is a fantastic one, simply because it just completely changes your lens on the world.”

We focus on an in-depth examination of global leadership behaviors that contribute to the success of female expatriate leaders. We have uncovered that WiSER share an additional four competencies that help women excel in their expatriate assignment: Self-awareness; ­Conscious imbalance; Active career management; Operating outside your comfort zone.

As a woman considering an international job, developing these four global competencies will lead to greater success in an international role. Specifically, it will position expatriate women to:

  • Achieve peak performance
  • Accelerate assimilation into your new environment
  • Facilitate a smoother transition

It’s a Wrap

In today’s business environment, leadership’s top concern continues to be attracting, retaining, and developing talented leaders. In the face of a growing leadership shortage, the solution lies in diversifying talent pipelines. Specifically, women who represent approximately 50 percent of the potential workforce are a resource to be targeted. There are many benefits to including more women in the leadership ranks and addressing the leadership crisis is foremost among them. Expatriate experience is an underutilized approach to accelerate development and get ambitious, talented women in the talent pipelines at a higher and faster rate. There are two main ways to expatriate, self-initiated or organization induced. Regardless of the path, the journey is career enhancing. Working and living abroad provides intense learning and development of leadership skills, and a global mindset. There is a long term professional competitive advantage, as well as financial rewards. Notably, expatriate opportunities help individuals grow, both personally and professionally.

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