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Leadership across cultures
A monocultural approach to leadership is now less acceptable as an increasing 
amount of business is carried out beyond national boundaries. The ability to 
understand the fundamental values of other cultures is essential to avoid mis-
understandings which may escalate into actual loss of business opportunities.
Business has become more interconnected, as is particularly evident in the 
increase of outsourced jobs, especially in IT and professional service indus-
tries. The increase in mergers and foreign acquisitions has also emphasized 
the need for leadership in managing corporate change and adjustment and 
in developing the ability to motivate a multicultural workforce. The result 
of this is the need for a truly global perspective. These changes, however, 
may well impose high levels of stress over sustained periods of time, which 
have an adverse effect on health and judgment, with the result that today’s 
international leaders are more reliant on collaborative approaches. The 
heavy costs that may be incurred should they fail in their international 
assignments will impact not only on their family and themselves as indi-
viduals but also on their organization, its reputation and its position in an 
increasingly competitive global marketplace.
Challenges facing twenty- first- century leaders
Today’s leaders must be prepared for the future as globalization intensifies 
the complex challenges due to the interdependent global economy and 
fast- changing political and economic events. Figure 7.1 outlines some of 
these challenges.
As a result of these challenges, the role of international managers has 
widened considerably. Their responsibilities may cover entire regions and 
they need the skills to adapt quickly to new challenges and operate effectively 
New technology and the increasing pace of change
Increased shareholder expectations
Increasing scarcity of raw materials with resulting international competi-
tion to secure available sources
The development of regional trading blocs and the potential large market 
grouping being created in the Asia/Pacific region
The repercussions of the financial and economic turmoil in the West, in 
contrast to large sovereign wealth funds held elsewhere
New emerging markets (for example, the BRICs) and shifting competition 
bases
Dealing with natural disasters, the effects of climate change and the 
awareness of the need for sustainable development
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Figure 7.1 Challenges facing twenty- first- century leaders

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Leadership Across Cultures 127
in several different cultures. Traditionally, the international manager has been 
synonymous with the expatriate manager, but times have changed and the 
role has been extended. ‘There is a demand for new types of cosmopolitan, 
multilingual, multifaceted executives who are operational across national 
borders, somewhat like James Bond’ (Schneider and Barsoux, 2003: 185).
Global expansion has made business much more interdependent. As a 
result, the selection and training of those who will be the future leaders are 
of crucial importance. The challenges faced by businesses have demanded 
increasing reliance on strategic thinking, adaptability to fast- changing situa-
tions and the ability to interact with their counterparts in other cultures. As 
Levin states: ‘Leadership is no longer a solo act. The concept of leadership 
is radically changing and the challenges that leaders are facing may well be 
beyond their individual capabilities’ (Levin, 2007: 5).