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Developing Global Leaders:
The International Consortium Program

By Jan M. Wilmott: Director, Executive Learning Programs
Boeing Leadership Center/ Assisted by Dr. Louise C. Wilkinson
Well before the beginning of the new century, many large international companies began waking to the demands of a global market, and The Boeing Company was no exception. Previously focused primarily focused almost exclusively on domestic and overseas sales, product quality, and improving production rates, corporate leaders were now beginning to recognize the need to integrate global resources into all parts of the value stream, including the need to createing global leaders.

But giants move slowly, and Steve Mercer (then Vice President of Learning and Leadership Development) and I (Director, Executive Learning Programs), together responsible for executive development at Boeing, recognized the challenge mission ahead. The company needed leaders who understood the challenges of real globalization, but you can't develop experienced and effective global leaders in an isolated U.S. classroom, even a classroom as nice as the Boeing Leadership Center's in St Louis, Missouri, USA. Helping The Boeing Company become a "Global Enterprise" required a new focus on executive leadership development and new methods of executive education.

In the summer of 1999, we launched Boeing's first Global Leadership Program (GLP). GLP was the Boeing Leadership Center's (BLC) first step in our quest for developing leaders with a global "brain." This program, led by Nancy Stebbins, was designed to help create the global mindset required of twenty-first century executive leaders. GLP, a thirty-day business-driven action-learning program, provided the opportunity for 27 Boeing executives to gain insight into the history, culture, politics, business practices, culture, and societal norms of a strategically relevant region of the world. Not only do the "succession plan" participants learn from the experience, but the enterprise as a whole gains valuable information and insight. Over the last four years, we have completed ten GLP programs in Northern Europe, Spain, Japan, Italy, China, Australia, Germany, Korea, the UK, and Brazil. This fall, I will be taking another group to India. (I'm still wondering if this audience will understand what "succession plan" participants are.)

Although this was a fabulous learning experience, we were missing the broader perspective gained by day-to-day interactions with senior leaders with a different set of international experiences. What we needed to do was mix these executives with leaders from other countries; multi-cultural experience is crucial for understanding different ways of thinking and doing business. We knew believed it was going to take some type of consortium.

 
   
  Developing the Consortium
Consortiums have been around for a long time, but they are usually run by individual business schools, and companies have to settle for faculty and curricula that already exist as part of the program. Steve and I wanted something that was cost effective, but also strategically focused. It needed to serve the needs of our specific population of executives and be easily aligned with Boeing's business priorities. We wanted to develop our own high-powered and carefully targeted curriculum, and hand pick top faculty from around the world. So we worked with Yury Boshyk of Global Executive Learning to come up with our own plan.

We decided to create an executive education partnership between a number of like-minded international companies who were business peers and had equal sophistication and maturity in their ideas about leadership development. We wanted corporations similar in size and scope to Boeing, with solid financial performance and a global presence. These businesses should come from diverse regions of the world, represent multiple industry segments, and should not represent significant parts of each others' value streams. We wanted to work together with them to jointly create and deliver an exceptional global leadership development experience for all of our high-potential senior executives. This was a new idea, but the challenge required it.

The next step was to identify potential partners and sell the idea. Each partner would have a representative serving on the steering committee. We picked entered into conversations with ABN-Amro Bank, a large banking institution headquartered in The Netherlands; Asea Brown Boveri (ABB), a strong Swiss based industrial process-engineering, consulting, and supply firm; and Broken Hill Proprietary (BHP), an Australian-based mining and minerals company. All three were well-established international firms that were, like Boeing, growing through mergers and acquisitions. And, all were interested in having senior executives develop far more global savvy. We also had the insight to know that starting small was critical to success.

The steering committee consisted of Brigitte Jonkers from ABB, Robert van der Vein from ABN Amro Bank, Pierre Guillon from BHP, and I represented Boeing. Yury Dr. Boshyk was on asked to join the committee representing Global Executive Learning and serving as the consortium's executive director. In addition to support of the overall goals and strategy, this team agreed on a number of basic parameters. We agreed to share costs and hosting responsibilities. We agreed that each would send six to eight participants selected from the ""high potential" (those currently on succession plans)" individuals currently operating at the executive level within each participating company. We also understood that to be successful; these participants must be high level peers. We agreed to participate actively in all design, delivery and implementation of events. And, as we tried to create the best of all possible experiences for global leadership development, we agreed that action learning was the only way to go.

   
  Action Learning
Action learning would provide executives with the real experience of what it takes to run a successful global business. It was also a necessity; no one could give nice neat lessons in this new and challenging arena. Global business is the quintessence of an adaptive challenge, which means there are no tried and true formulas. In remarks to the first gathering of the first participants at the Boeing Leadership Center in St. Louis in June of 2001, Boeing President and CEO Phil Condit said, "There are no signposts; there is nothing telling us where the answer lies. So my goals for this class are to give you (1) a chance to get in there and rummage around in something pretty big and learn from that activity, (2) a chance to learn from each other, to learn what's working, what might work, and to imagine what could be, and (3) a chance to share back and forth inside the group. This class is clearly an experiment; we've not done it before."
But participants were not dropped into the sea without some charts, lifeboats and swimming lessons. The curriculum was carefully planned, and the first week in St. Louis provided an intense academic but practical set of activities to level set, provide an overview and context for the course, share specific information about each company, and introduce some of the issues and considerations they must engage in the global business arena
   
  First Year Program Curriculum Outline
 
United States - St. Louis
Key Issues and Business Challenges in Europe (Yury Boshyk)
Leadership, Culture, and Business Challenges (Frans Trompenaars)
Europe and the Global Economy (Andrea Boltho)
Sustainability and Growth (Robert Davis)
Global Leadership (Stephen Rhinsmith)
Company Best Practices in Europe, Middle East and Africa (Volvo, SAP, Nokia)
   
 
Europe - Zurich
Growth Challenges Worldwide and for the Americas (Yury Boshyk & Dennis Encarnation)
North America & Its Political Economy (Thomas Mann)
Creating Shareholder Value (Tom Conine)
The War on Talent (Jeffrey Gandz & Mark Nevins)
Company Best Practices in the Americas (Cisco, Monitor Group, J&J, Ericsson)
Latin American Crisis and the Global Impact (Yury Boshyk)
   
 
Australia - Melbourne
Key Issues and Business Challenges in Asia & Australia (Yury Boshyk)
Implementing Change (Bev Davids)
Company Best Practices in Asia (DoCoMo, Mitsubishi, Seagate, Fujitsu)
Pulling it all together
   
  Action learning requires a business relevant task focus, so we also put their tasks team projects before them during this first week. Perhaps one of the most exciting things about this program is the way the task is devised. We first ask the CEO's of the four companies to come up with a common theme or organizing focus. Then each CEO contributes a related specific business issue for their participants, something the company needs top thinkers to devote significant effort toward. The tasks are real and relevant projects of strategic importance. The program participants become a sort of "red team" focussing their non-partisan best efforts to address an enterprise-wide issue critical to the future of the company. And they do it in concert with program colleagues who bring a wide variety of diverse cultural, industrial and business perspectives and experiences to the table. The ICP theme for the first program was to create customer value through e-business. No small charge! But one that was relevant to each member company. Our My bet was that they could, as they participated in a leadership development classexperience, contribute real business results to their respective companies.
   
  The First Year
That first week of the first International Consortium Program combined hope and challenge. We developed much of the course content around the theme of e-business, and as facilitators, consultants, guest speakers and participants engaged in lively dialogue, it became clear that tomorrow's successful global leaders will need an expanded set of skills. Managing complex adaptive challenges is a given, but the required cognitive awareness increases exponentially when the political, economic, technical, regulatory and interpersonal/cultural trends one must track are now multiplied by the number of countries involved. All of these trends have to be combined with customer knowledge to create new business opportunities that anticipate customer requirements. And global leaders need the patience and perseverance to work with multiple governmental regulatory agencies to influence the development of laws and regulations needed to create a more equitable rules-based global economy. What we really hoped to do was to expand their minds to become global thinkers.

Two more weeks of formal class followed over the next six months, one in Zurich in August, and one in Melbourne in November. But the learningclass activity continued between sessions as participants conducted field research and developed their plans. There were benchmarking and research interviews with business, technical, financial, and political experts in the US, Europe, Asia, Australia, and anywhere else in the world where best practices could be found. The company teams worked together regularly, using web-based collaborative tools (Blackboard), to identify and define real e-business opportunities for their companies and to prepare their tailored company-specific findings and recommendations for group and company reviews in Melbourne. The teams discovered that the intense activity and frenetic pace of the formal sessions were only precursors to the time and energy commitment required throughout the program. But they already knew the demands on top leaders, and heaped these new tasks on top of their already large workloads. We could helped themsee that they kept keep their eyes on the prize by assigning an executive coach to each team.
   
  First Year Results
In the course description, we promise participants that they will "develop a deeper understanding of trends in business and society on a global level. They will also develop a strong global network of highly talented colleagues from the business world, as well as those from the scientific, technological, academic, and public sectors. Consortium activities will help participants gain a clearer understanding of individual company challenges and opportunities." It seemed that we got the results we promised.
The leaders participating from Boeing testified to the program's success at helping them become newly capable in the global world of e-business. They shared issues, knowledge and best practices, and acquired a much larger and more complex picture of the world of global international business world. As they gained understanding of what globalization means, some discovered that Boeing wasn't quite as global as they had thought. Many realized that core leadership challenges seem universal, but how to operate globally is very different depending on where you're working. Some said the challenges facing other companies often put their own into perspective, and the issues of other industries shed light on their own. Many testified to the importance of their increased cultural understanding, for personal growth and for doing business and creating business relationships in other parts of the world. And some developed an awareness of sensitivity to the potential impact of economic growth on local cultures, thinking about ways to grow economies without ruining cultures. The greatest gain, in the words of many, was the appreciation of multiple points of view, and these multiple perspectives were directly applied to the real business task at hand. All spoke to the value of their increased Boeing and worldwide network of colleagues.
   
  Craig Saddler, Vice President of Business and Financial Operations for the 7E7 Program in Boeing Commercial Airplanes, participated in this first International Consortium Program. He saidsaid, "The experience for me was fantastic. It was great learning for me about global business, cultures and our project - collaboration and e-business. I had little experience with global business, and this class put us in a setting where we could work with other companies and learn from them. I think the company benefited by not only having us learn about what it means to be global, but also since our project was sponsored by the Exco Executive Council and we out-briefed to them - andthen were charged with implementeimplementing, the whole company benefitedd. The thingthings I will remember most however are the people - we had an incredible selection of folks from not only Boeing, but from the other three companies. I correspond with several of them still today! A great network."

Don Imholz,
Vice President of Integrated Defense Systems Information Technology, also valued both his general learning and some solid business results: "ICP, like the GLP, really is of benefit in giving participants a more global perspective. You tend to think about global trends, global markets, global competition, and global sources of supply when looking at a business problem. You learn that there are a lot of similarities across the world but also differences, and that what on the surface is one way may not be that way when you dig deeper. The ICP in particular was interesting as you got the perspective of people in other industries. As one particular, the participation of a number of IT leaders in GLP and ICP has led to a higher level of comfort in consideration of sourcing IT work to other countries, which is important in terms of both lowering our cost as well as helping with market access."

Our goals for the program were to provide a global learning experience and maximize the benefit to the company, and the success of the first year of the International Consortium Program was felt far beyond the individual development of the executives who participated. Each leader went back and communicated new understandings and shared new knowledge and contacts. And the company teams presented the project plans they had generated through this six months of work to their respective executive Councils. If these Councils accept the plans, implementation follows. And that was the case with the Boeing team's plan. The executive most interested in the business results of their task, Scott Griffin, testified to the value of focusing this diverse, intelligent and talented group of senior executives on a common business problem: "The assignment was to look at what the industry is doing in the 'Collaboration' space, and to make recommendations on how Boeing should proceed. Collaboration refers to the ability of virtual teams, with members scattered all around the global enterprise, to work together as if they are in the same room. Collaboration tools range from simple solutions such as WebEx, all the way to complex solutions that allow engineers to do concurrent design on 3D solid models.
"The team came back with a recommendation to consolidate the many collaboration projects underway around Boeing into one project which would address the simple and complex collaboration needs of the Boeing global enterprise. It was assigned to Dave Swain, our Chief Technical Officer, and Scott Griffin, our Chief Information Officer. Matt Symmonds of Phantom Works was named project manager, reporting to Griffin. This project is helping to carry the Collaboration lessons learned from Future Combat Systems to new programs such as the 7E7, and is in the process of creating an enterprise collaboration space for use by new programs to test collaboration solutions. The work done by the first International Consortium project team was the launching pad for this very important enterprise project."
I did have faith that at the end of the six months there would be 27 executives with a much stronger working definition of what it takes to run a successful global business and with a powerful network of new friends to help them. There would also be four companies with a better understanding of global opportunities, as well as a clear view of e-business opportunities. It certainly seemed to pan outmy faith was justified.

   
 

The Program Continues
Success breeds success, and I think we all see that the program has only increased in effectiveness, despite the many internal and external challenges we've encountered. The Steering Committee has been the heart and soul of this program. I see it sort ofsomewhat like a marriage but one without any type of legal contract. We developed a charter, but its real strength lies in the members' personal pledges to work together, communicating openly and honestly, supporting the Program through thick and thin, and devoting the energy and resources necessary to its growth and success. Trust and teamwork were the essential ingredients. We spent many hours together developing plans, strategies, and just getting to know one another. And there were significant external challenges to all of the partner companies as the economy turned sour and 9/11 pulled the bottom out for many of us. But the Program not only weathered these storms, we were able to make use of them to deepen the learning in the Consortium, and to make use of the Program to help all of us survive these trials. The program theme for 2002 was "Exploring Business Opportunities for Growth and Leadership in Challenging (Difficult) Times." It fit the times for everyone. And in 2003 it isis the themes are "Creating the Future" and "Developing Market Driving Organizations." Maybe we're all feeling more optimistic. In these follow-on years as the central themes and tasks have changed, so has our makeup. In addition to BHP merging with Billiton to form the new BHP Billiton and ABB selecting a new CEO and executive team, we've invited new company partners on board. The Benfield Group, a re-insurance company in London; the Standard Bank of South Africa, ; and most recently the Tata Group of India, joined our partnership. Each company brings whole worlds of new experience, talent, perspectives and connections, but we on the Steering Committee have kept to our original standards and agreements. We take care never to let the partnership or the class size get unwieldy, and I think the Committee relationships are increasingly close and rich, and the class dynamics and quality of participant interactions are keener and deeper. The continuing care we put into the program design and participant selection has only increased the success generated by the International Consortium.

Mary Armstrong, Vice President/General Manager of Aircraft Systems and Interiors in Boeing's Commercial Airplane Group, participated in the second class, held August to December of 2002. She said, "The best part of the program for me was interacting with the other companies' executives on their turf. I felt as though I had led a pretty sheltered life as a Boeing executive because they had a much better understanding of the US than I had of their home countries. I gained a new perspective of how 'small' the world really is, and how much more I need to learn about other parts of the world. The program really helped me connect with the global aspects of business today, and I left with an urgent desire to help Boeing gain a more thorough global perspective. We are not where we need to be right now. We need to come up to speed, fast, if we are going to take advantage of all the opportunities out there."

Michael Denton, Vice President of Engineering for Airplane Programs, also in the Commercial Airplane group, took part in the third course. Their team assignment was to work on the application of network centric concepts to Boeing internal operations. He was equally enthusiastic: "When I was nominated for the program I was told that this class would give me a more global perspective, while introducing me to people from other companies around the world. The networking opportunities with them would increase my perspective of how regional conditions in different parts of the world influence those companies, and how they respond to those challenges.
"I found that the class was everything I had been promised and more. WeThe participants spent a week in Switzerland, a week in the United States (at our leadership center in St Louis) and a week in South Africa. At each venue we got fantastic exposure to economists, business leaders (from the participating companies as well as others), and other speakers. We got a fantastic immersion into current economic and political pressures that are shaping our world - giving us a perspective on the challenges facing our respective companies, as well as the opportunities. We also gained a much greater cultural understanding of the host countries that we visited, which I found to be a fabulous personal learning experience in itself.
"Along the way, all of the participants worked on assignments that had been given by senior leadership of our respective companies. These assignments have helped to reinforce our learning while also enabling us to learn even more about our own companies. At Boeing this is a tremendous opportunity as our team was comprised of individuals from across the enterprise. We networked, learned about our respective businesses, and developed friendships that will last through the years ahead.
"All in all, a great class. I count myself lucky to have participated!"
Two other participants in the third course echoed Michael's thoughts and added some of their own. Norm Bartlett, Vice President of People and Employee Services with the Shared Services Group, said the course was "masterfully designed" to produce learning on a number of levels. On the personal level, Norm said the experience "fundamentally re-engineered my thinking." When he looks at issues now, he recognizes numbers of different solutions and that he might not be asking the right questions. Now he sits back and asks "how would others look at this?" He sees this as a real power that leads to real business results. On the Boeing interpersonal level, Norm discovered five "incredible" Boeing colleagues and has learned about them and about the company from the intense work they've done together. On the international level, Norm was struck by the commonality of not only business goals, but core values among all of the international participants and contacts. He noted that all companies had common people issues and goals: better communication, how to develop their people, creating a high-energy motivated workforce. He discovered that the theme of network centric operations is of keen interest to many international companies, and compared to some, we have work to do. Our ability to adapt and change isn't rapid enough. He noted that Nokia in Helsinki has reached a place where the workforce panics if things aren't changing; "Think about how fundamentally different this is!" He also observed that although Boeing's name is held in high regard around the world, we must be careful not to impose our solutions from without. "You've got to learn to work within the culture; you can't assume the same benefits that we would see here would happen somewhere else." OHe said that other countries are much more knowledgeable about us than we are about them, partly because every economic act of the U.S. has a profound effect on their economies.
Many of Norm's words resonated with the profundity of his experience, particularly in South Africa. He found it extremely humbling to visit a continent that is "largely disregarded," where "40 to 60 per cent of the population is AIDS infected," where he looked into the eyes of the people and wondered how life can be sustained. The visit to the Soweto Township, the Black township in Johannesburg where the fight against Apartheid centered, generated in him real awe as he recognized what they have achieved against incredible odds. And he observed that the challenges they face today dwarf any that we might face. They are trying to create order and structure in an environment of disorder and distrust, and "a few years ago they were blatantly discriminated against." He observed that their challenges make ours seem very doable; "What should we be able to do with all these resources? We're spoiled!"
Norm credited the depth of learning to several factors. The stature and quality of the speakers was "amazing." He said that several were Nobel Prize winners, and in South Africa, two of the speakers were heavily involved with the abolition of Apartheid and the development of the new South African government: "It was like having George Washington and Thomas Jefferson come in and speak to us." He suggested that spreading the sessions out over months rather than compacting the course had a huge effect on how the learning was internalized and on the relationships developed. And the relationships themselves he finds life-long and life-changing. The six Boeing participants have formed friendships far deeper than most long-term professional associations, and as we talked, he received an e-mail from a Benfield participant in London who will be spending time with Norm's family in the near future.

John Tracy, Vice President of Structural Technologies, Prototyping and Quality in Phantom Works, said the ICP was the "most intense learning experience" he's ever had, and he's had many. He thought the immersion in different geographical locations around the world helped him develop the ability to see issues, problems, and solutions from perspectives he wouldn't otherwise consider. John focused on the leader's role in making change, and examined the leadership task through that lens. He said the Boeing team looked carefully at how network centric operations would change the ways in which information is shared and decisions are made. Decision-making is pushed downward, occurring where people have the best information to make them, which can be at any and all levels of the organization. So technology change is not the issue; culture change is. How do we train people to be comfortable with decisions being made at lower levels? John found the breadth of thinking offered by "brilliant people from all over the world" and from other industries invaluable to the project, but also to his own future leadership. He developed a "network of people throughout the world" that he can leverage throughout his career, and also made "great friends."

   
  Lessons Learned = Innovations
Some people may think creating and maintaining consortiums is pretty much like dealing with any other type of team, but that view is only held until you try it. Consortiums are a rather unique breed of cat and keeping everyone headed in a common direction sometimes feels like herding the proverbial felines. Selecting the right companies and keeping them involved is difficult. You are dealing with very diverse company partners with potentially different interests and priorities, and their involvement is voluntary; you have no real leverage. You are asking them to come together from their various organizational worlds to create and implement a common vision of leadership development. We did a lot of study of what makes successful consortiums before beginning this program, and knew that they make a high demand on resources and they need to be extremely well defined. There were guidelines about program length and shape, and we took them very seriously.
The really unique thing about our experience is that we were creating a consortium partnership between international companies. Consortiums are challenging even when they are between fairly homogenous partners on a U.S. college campus, and when you add the complexities of international partners, the challenges definitely escalate. It took much of my time and taxed all my group and team dynamics skills to do it once. Maintaining the partnership over the years, while major world changes have impacted each of the partners highly and differently, has taken everything I've got. It occurred to me that I've been through an advanced version of the Program. The participants are doing their real work with people from their own companies, so there's common ground. Their international peers are sharing ideas and perspectives, but a successful project for the participants doesn't depend on coordinating all of these diverse cultural, company and industrial interests into a working project. I think our experiences have now in turn contributed to the literature on Consortiums. We've learned that there needs to be a core proactive membership, but the group must be flexible and open to a larger pool of members that are not part of the core. This core group has to be passionate about the project, and the members must have a clear shared philosophy about learning, and respect for each other. To be an effective steering group, you have to share leadership, be willing to yield to the desires of the group, and always keep focused on the outcomes. It is so much more work than you ever expect, but it has been worth it, and that is what has kept us all going. We have an incredible Steering Committee, and an incredible partnership.

We are constantly evaluating the course, always looking for how it might work better. We actually haven't found too many things wrong with it, so we've been able to concentrate on improvements and expansions. Somewhere along the lineRecently an innovative coach, Pat Arruda, suggested that the workload undertaken by Boeing participants could be shared with selected high potential employees, bringing in new perspectives, helping participants balance their lives a bit, and spreading the learning provided by the Program. This has benefited everyone. Eric Kittleson, Senior Manager of Business Operations for Manufacturing and Quality in Boeing Commercial Airplanes, was tapped by ICP participant Dan Becker to create a team drawn from Boeing's Leaders for Manufacturing program in cooperation with M.I.T., and Boeing recruits from the Tauber Manufacturing Institute. Participant Bill Ballhaus did the same in Boeing Satellite Systems. These two teams provided their input on the ICP task, and it was so well received by the Boeing ICP participants that the two teams were sent off once again, under Eric's guidance, to further "chew on the problem" together. Their input has been incorporated throughout the development of the participant team's plan for presentation to the Boeing Strategy Council. According to Eric, the value of this experience to this team of LFM's and TMI's included a much deeper understanding of network centric operations, particularly valuable to one member working on incorporating them into the Comanche team in Bridgeport, Connecticut. They also learned a lot from the ICP involvement with companies around the world. But the element that stood out in Eric's description was the value of the Boeing network created within this extensive sub-team, and the expanded learning each member gained about the other parts of the company.
And this most recent group to complete the program is initiating another innovation. After the six months of work, the company teams have developed their findings, laid out their strategies, and created presentations to for their top leaderscompany strategy teams. Hopefully, implementation of these plans will follow. This Boeing group, challenged by their task of exploring the use of network centric systems internally within Boeing, suggested that all program participants meet again for a week 11 months after program completion. This session would be focused on implementation issues: What were the road blocks? Resistance to change? How did they handle these issues? What worked and what didn't? What best practices can they share about implementation of change?

(Reproduced with the permission of the authors).