CQ: from Boardroom to classroom, NTU Leadership Conference, Transformational Strategies for Succeding in a Volatile Marketplace, Singapore, October 2011

1. CQ: FROM CLASSROOMCQ: FROM CLASSROOM
TO BOARD ROOMTO BOARD ROOM
Guido GianassoGuido Gianasso
VP, Human CapitalVP, Human Capital

2. 2
Air Transport is the most global industry in the world.Air Transport is the most global industry in the world.
Its main characteristics:
 Only the unpredictable is predictable
 Low Profitability
 Spectacular growth in Asia

3. 3
 But until 2002 IATA was the reflection of the industry:
the secretariat of international aviation conferences
run by government owned entities

4. 4
IATA in 2001IATA in 2001
Case for changeCase for change
 Liberalization and economic deregulationLiberalization and economic deregulation
 Low cost carriersLow cost carriers
 …………..

5. 5
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
1996 1997 1998 1999 2000 2001 2002
%changeyearonyear
Global Commercial Airline Revenue GrowthGlobal Commercial Airline Revenue Growth

6. 6
Film: IATA TODAYIATA TODAY

7. 7
IATA is one of the most cultural diverse andIATA is one of the most cultural diverse and
complex organizationscomplex organizations……
 120 nationalities in 70 offices
 Very strong matrix, project-based and network
based elements

8. 8
IATA challenges to lead the industry in the 21IATA challenges to lead the industry in the 21stst
centurycentury
and successfully manage globalization, competitionand successfully manage globalization, competition
and growth in Asia and Africa:and growth in Asia and Africa:
 Move from a “Ethnocentric” to a “Geocentric” culture
to run growing operations around the world
 Bring diversity to the top of the organization
 Find an alternative to the old “Expatriate-Colonial” or
“Cultural Translator” approach with regard to operations
in Asia, Africa and the Middle East

9. 9
GEOCENTRISM*: A WorldGEOCENTRISM*: A World--Oriented ApproachOriented Approach
 The best men regardless of nationality are appointed to
solve the company’s problems anywhere in the world
 Collaborative effort between subsidiaries and
headquarters to establish universal standards and
permissible local variations
 The Firm’s subsidiaries are neither satellites nor
independent city states, but parts of a whole whose focus
is on worldwide objectives as well as local objectives
*H.V. Perlmutter (1969), The Tortuous Evolution of the Multinational Corporation

10. 10

11. 11
IATA Director Generals 1946IATA Director Generals 1946--20022002

12. 12
IATA IN 2002IATA IN 2002

13. 13
How to Move the Organization Forward ?How to Move the Organization Forward ?
1. Creating the sense of urgencysense of urgency within the Top
Management Team
2. Articulating the visionvision, strategystrategy and ensuringensuring
buybuy--inin
3.3. AligningAligning HR processes and systems
4. Building a winning coalitionwinning coalition

14. 14
Creating the sense of urgency inCreating the sense of urgency in
the Top Management Team..the Top Management Team..

15. Power Distance vs. IndividualismPower Distance vs. Individualism
5
15
25
35
45
55
65
75
85
95
10 30 50 70 90 110
Small LargePower Distance (PDI)
CollectivistIndividualistIndividualism(IDV)
• Guatemala
• Costa Rica • Pakistan
• Ecuador
• Venezuela
• Indonesia
•Singapore • China•Thailand
• Hong Kong
• Romania• Mexico • Philippines
• Russia• Arabs• Turkey
• Iran
• Japan
• India
• Switzerland FR
• France
• Belgium FR
• Canada Quebec
• Israel
• Finland
• Germany
• Norway
• Sweden
• Denmark
• New Zealand
United States 
• UK
• Brazil
Australia 

16. Power Distance vs.Power Distance vs. IndividualismIndividualism
5
15
25
35
45
55
65
75
85
95
10 30 50 70 90 110
Small LargePower Distance (PDI)
CollectivistIndividualistIndividualism(IDV)
67% 62%
41%
$
29% 34% 31%
3% 3%
27%

17. 17
Layers of Managerial values for Indian senior executivesLayers of Managerial values for Indian senior executives
Situational Values:Situational Values:
Role dependant values contingent upon
situational elements of macro-environmental
policies and corporate culture
LAYERLAYER
THREETHREE
Individual Managerial Values:Individual Managerial Values:
Work values ethical values and other such
values anchored to the core tradition but also
in the process of transition
LAYERLAYER
TWOTWO
Core Traditional Values:Core Traditional Values:
Deeply held robust and widely shared values
LAYERLAYER
ONEONE
MARKETMARKET
CULTURECULTURE
ECONOMICECONOMIC
REFORMREFORM
S.R. Chatterjee; C.A.L. Pearson, Indian Managers in Transition: Orientations, Work Goals, ValuesIndian Managers in Transition: Orientations, Work Goals, Values andand
EthicsEthics, in Management International Review, 40, 2000

18. 18
Articulating the vision, strategy andArticulating the vision, strategy and
ensuring buyensuring buy--in..in..

19. 19
Articulating the StrategyArticulating the Strategy
 Bring diversity into the Senior Management Team
 Change the culture by introducing CQ among the
organizational core values and align HR systems and
processes
 Develop a new generation of leaders able to operate
successfully across cultural and geographical boundaries

20. 20
Cultural Intelligence (CQ)Cultural Intelligence (CQ)
 The capability to work effectively in culturally
diverse environments

21. 21
A partnership for research andA partnership for research and
Leadership DevelopmentLeadership Development

22. 22
CQ and Performance in IATACQ and Performance in IATA
82
72 73
67
72
65 67
60
40
45
50
55
60
65
70
75
80
85
CQ Drive CQ Knowledge CQ Strategy CQ Action
A Player
B Player

23. IATAIATA
StrategyStrategy
IATA Values
Core Competencies
People
Speed
Innovation
Change
Integrity
Teamwork
with Cultural
Intelligence
Results
Leadership
1. Manpower
Planning /
Organization
Design
2. Recruitment
3. Performance
Assessment
4. Rewards
5. Development
Aligning HC Policies and SystemsAligning HC Policies and Systems
to IATA Strategyto IATA Strategy

24. 24
Building the winning coalitionBuilding the winning coalition

25. 25
IINTERCULTURALNTERCULTURAL
LLEADERSHIPEADERSHIP
EENGAGEMENTNGAGEMENT
AANDND
DDEVELOPMENTEVELOPMENT
 Drive change in the industry and the organization
 Operate across geographical and cultural boundaries
 Bring added value to the business by working together on
real projects
Developing a new generation of IATA leaders able to:

26. 26
II -- LEADLEAD
 20 Change Agents20 Change Agents
(10 from high power-distance collectivistic cultures - 10
from low power-distance individualistic cultures)
 100 Participants100 Participants
(10 cohorts – 10 projects)
 7 Locations7 Locations
(Amman – Singapore – Miami - Montreal – Geneva –
Johannesburg - Madrid)

27. Project Team
Opening
Workshop
11-22 Oct
Project Team
Closing Workshop
10-19 Jan 2011
I-LEAD Final
Workshop
24-25 Jan 2011
I-LEAD Launch
Workshop
20-23 Sept
20 Change Agents
•10 high power-
distance/ collectivistic
cultures
•10 low power-
distance /
individualistic
cultures
In Singapore for 4
days
Pairs of Change
Agents run local
2-day workshops
and launch
projects
Local teams meet for
1-day workshop
• Decision making
and next steps
• Conduct team
feedback
All Change Agents plus
one team member meet
in Montreux for 1 ½
days,
• Report results
• Share best practices
• Agree to next steps in
driving change
11 - 13
WEEKS
Local Teams
Complete
Project
Work
II--LEAD 2010LEAD 2010--2011 Process Overview2011 Process Overview

28. 28
DriveDrive
KnowledgeKnowledge
StrategyStrategy
ActionAction
•Leader’s message
•Lectures on Culture
•Teaching Internal Teams
•Traveling / Visiting
•International Projects
•Managing Internal/External
Stakeholders
•Leading Internal Teams
•Conducting Research
•CQ Self-Assessment &
360°
•Being Coached and
Coaching
EXPERIENTIALEXPERIENTIAL
CQ DIMENSIONSCQ DIMENSIONS II--LEAD ACTIVITIESLEAD ACTIVITIES
DIDACTICDIDACTIC
SELFSELF--
AWARENESSAWARENESS

29. 29
78
Impact of IImpact of I--LEAD on CQLEAD on CQ

30. QUESTIONS???QUESTIONS???