People Innovation Excellence

An effective way to learn to be global leader

As the pace of globalization continues to increase, companies along with local talents have to settle themselves against the evolving competition landscapes. Leaders and communities have to upgrade their old fashioned mindset and leadership into a more innovative and global oriented paradigm.

Thomas L. Friedman in his book, The World is Flat (2005), says that the revolution of technologies has flattened the world and it allows anyone to compete against each other as well as collaborate globally for economic purposes and towards a new phase of globalization. The evidence of globalization can be seen by the establishment of common market, such as ASEAN Economic Community (AEC) which has been applied since the end of 2015 after being the major topic on ASEAN High-Level Conference since 1997. The presence of common market in Southeast Asia allows for people, goods, services and capital to move around a union as freely as they do within a single country – instead of being obstructed by national borders and barriers as they were in the past.

The establishment of AEC also shows the shift of global economic power from America and Europe, who suffers from financial crisis multiple times in recent years, to Asia. As an integral part of globalization, this crisis has forced the world to reorder. As a result of economic liberalization, technological advances, capital market development, and demographic changes, Asia contributed around 34% of global Gross Domestic Product (GDP). This number is projected to increase to 40% by 2030. Centennial Group International predicts that Asian region will contribute more than half of global GDP by 2050.

This trend affects the intensity of economic activities in Asia, mainly East and Southeast Asia, as it is projected that the foreign direct investment into Asia will increase. United Nations Conference on Trade and Development (UNCTAD) in the documents of World Investment Report in 2014 reveal that foreign direct investment in developing countries raked 426 billion USD or 55% investment to Asia. East and Southeast Asia are the most interesting investment destination since they absorb as much as 347 billion USD, or 81% of the whole foreign direct investment in Asia.

The massive investment in Asian countries can also be seen from the increasing takeover of Indonesian companies by foreign parties. There are a lot of takeovers in the recent years, such as Indosat by Ooredo, Kecap ABC by Heinz, XL by Axiata Group, Aqua by Danone, and Sampoerna by Philip Morris. Many Indonesian companies has become part of multinational and global companies in Post Fordism production system. This has created a demand of human resources and leader candidates to lead organizations which operate across regions. Therefore, doing business in this dynamic new world require a new kind of leadership. While the old leadership traits are still needed, but the new leaders also need additional knowledge, skills, and new mindset to navigate the complexity of global and regional business, which will surpass the limit of traditional mindset.

Leaders Have to be Prepared

Chairman of Emeritus AT Kearney Paul Laudicina explains in Forbes that one of the challenges faced by CEO within their leadership is sustainable efforts, since the current system organization is full of speed, complexity, and paradox. With plenty of experience in leading public and private organization, Laudicina has learned the importance of the ability of synthetic thinking as it gives unorthodox, deep and broad perspective about certain problems. Adaptability are necessary to understand urgent problems and long term thinking to be successful today and in the future.

Based on Laudicina’s experience, the competencies of strategic thinking have to be improved in order to be a leader with global and innovative perspective who understand when to analyze things holistically or when to focus on certain aspects. In addition, directing, motivating, and guiding employees from various backgrounds and generations also have to be developed to improve employee engagement and creating helpful atmosphere within the organization. In other words, building a team with various backgrounds is fundamental within the constantly changing business.

These characters and competencies development can be done through corporate university or by teaching in business school which help professionals and future company leaders to achieve global leadership. As a well-known business school, Binus Business School (BBS) has a vision to be “Global-Innovative-Relevant” and the capability to develop global leadership personalities. Further, BBS is the only business school which claims global accreditation from America (AACSB eligible) and the only school in Indonesia with direct affiliation with Harvard Business School to teach Microeconomic for Competitiveness. Ultimately, BBS is the only business school in Indonesia that focuses to help their students to think and behave strategically the way top management do.

Character development and leadership ability with global, innovative, and strategic perspective will be given to the students through matriculation course “Strategic Thinking” and “Leading in a Global Environment” subject. BBS also have state of the art facilities such as Innovative Lab and Marketing Lab to boost students’ development and insert Design Thinking from Stanford in its curriculum since 2010. Equipped with great characters and competencies, MM Executive BBS Students are eager to lead global organization anywhere in the world.


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