THE DEVELOPMENT OF THE LEADER 249Although when describing his company, Jean Riboud did not
explicitly talk about the making of a global leader, certain subtle mecha-
nisms having to do with selection and the creation of the right organi-
zational ambiance are clearly at work at Schlumberger to make its people
so successful. Not only does Schlumberger choose people who fi t a
certain profi le, there are other factors that also play an important role.
The headquarters of Schlumberger is very small, and although
overall strategic direction is largely determined there, the company has
a strong regional structure, and career progression does not depend on
time spent at the head offi ce. A great deal of operational autonomy is
given to the people in the fi eld. ‘ Space ’ is provided for each national
culture. At each location, the management team is made up of people
from fi ve or six different nationalities; there is no single dominant
national culture but, rather, a group of people from different cultures
who have internalized a common set of values. And this shared outlook
is an essential factor in assuring coordination among the many different
units of the organization.
Schlumberger is only one among many companies now dealing
successfully with the increasing globalization of business. How do
they, and other organizations, do it? Let ’ s take a closer look at what it
takes to be a global organization.
Forms of global organizations
It would obviously be foolish to suggest that there is an ideal structure,
suitable for all organizations and national cultures. Different types of
organizational structures have developed from very different beginnings,
and there are numerous kinds of global enterprises, international joint
ventures, parent – subsidiary relationships across national borders, and
other forms of alliances. However, there are certain structural factors
that can enable an organization to make good use of its global advan-
tages, and it is those that I will consider next.
Concepts of Globalism
If we look at the evolvement of organizations, we can see a development
of evolution from ethnocentrism via polycentrism to geocentrism (Per-
lmutter, 1969 ; Hedlund and Kverneland, 1985 ). In the ethnocentric
orientation, key positions are occupied by home - country nationals.
Foreign subsidiaries take on a subservient position. In polycentric com-
panies, foreign subsidiaries are run by local nationals and have a great