THE DEVELOPMENT OF THE LEADER 251- Their strategy focuses on global integration and national
responsiveness. - Their country units contribute to integrated worldwide operations.
- Their organizational structure is highly interdependent, a network
confi guration being the norm. - Those with high potential from anywhere in the world are devel-
oped for key positions wherever needed. - Governance is mutually negotiated between units.
- Communication is both vertical and lateral.
- Cultural complexity is the name of the game; many different per-
spectives and approaches have a voice in the structure and decision -
making patterns of the organization.
BP (British Petroleum) is an example of such a geocentric organization.
It considers the very complexity of its network of relationships around
the globe — customers, supplier, governments, non - governmental organ-
izations, communities, and so on — to be a distinctive asset. These rela-
tionships are seen as being long - term and based on mutual advantage;
assets that help BP endure and remain strongly competitive.
Some of the best - performing global organizations are in fact so
geocentrically focused that they prefer to have no national identity at
all. ABB is a good example: what was originally a merger between a
Swiss and a Swedish company has become a truly global organization.
The diverse composition of the executive board, the size of investment
and number of employees outside the original home countries, and the
considerable power vested in the subsidiaries are giveaways. BP is also
distancing itself from its national identity. In an advertising campaign,
the company downplayed the word British in its new slogan: ‘ BP —
Beyond Petroleum. ’
The last barrier that remains, however, in global organizations,
is the placement of non - parent - country nationals on the board of
directors. One of the indicators that an organization is truly global
is the number of nationalities represented on its executive board. Most
US organizations with global operations still have boards composed
almost entirely of Americans. Many European and Asian corporations
have equally homogeneous, home country oriented boards. But a
mixed - nationality executive board sends a clear message to the outside
world that the organization is committed to globalization and is deter-
mined to integrate varying perspectives. Such a message is a powerful
antidote to ethnocentricity within the organization. It also demon-
strates that the top jobs are not the exclusive bailiwick of certain
nationalities. Most important, a truly global board can effectively
make decisions based on many diverse perspectives.