Foreign Language and Foreign Language and America’s Global America’s Global CompetitivenessCompetitiveness

Ranjit AdvaniRanjit Advani

22 June 200422 June 2004

Foreign Language & America’s Competitiveness

• Introduction• Personal Experiences • Global Perception of Americans• Global Competitiveness – CSFs• Some Realities and Trends• What Do We Need to Do?• Q.& A.

Introduction

• Context for my Comments Partner in PwC, a Professional Services Firm Global Clients Global Organization and Resources Global Competitors

Personal Experiences

• Contract negotiations in Russia Language proficiency of both sides

• Competing with another global firm in Russia Winning advantage : Solution offered

language compatibility

• Negotiating merger in India Benefit of understanding the culture

Global Perception of Americans

Most of us:• do not know or understand the world

outside our borders• are not proficient in their languages • are not interested in understanding or

studying other cultures• welcome foreigners – as tourists,

students, professionals, competitors

Global Competitiveness - CSFs

• • • Understanding Your Customers• Understanding Your Competitors• Understanding and Utilizing Your Global

Resources Effectively•

Some Realities and Trends

• Based on personal observations• At my last firm,

26000+ employees in US / 1700 spoke a foreign language (6.5 %)

• According to 2000 US Census, Population 262 million / 40 million spoke a

language other than English

• Compare this with countries in US and Asia

Some Realities and Trends

Continuing personal observations:• Attended two MBA graduations in the family –

at Duke and Harvard Business School Both schools emphasize global strategy and global

competitiveness; yet neither includes knowledge of a Foreign Language as a requirement.

HBS had 30%+ foreign students in class of 2004. Many returning to their countries with a good understanding of the US environment. We do not understand theirs. They are building a competitive edge in global business.

Some Realities and Trends

• Does any leading Business School in the US have Foreign Language requirement? (INSEAD in Europe does. Many international

universities do.)

• How about educational Institutes on Public Policy? Kennedy School of Government at Harvard

and the Woodrow Wilson School at Princeton do not.

What do we need to do?

• Regain the competitive advantage Learn and understand Global Cultures – learning Foreign

Languages is only the first step.

• Businesses have started working on this challenge. Competing for limited resources.

• Educational Institutions need to fill this void - Emphasize foreign language requirements.

• Government can help coordinate, encourage, incentivise, mandate.

• Government should also start emphasizing foreign language requirements in its dealings with its suppliers and other businesses.

What do we need to do?

• To be globally competitive, we need to understand our global customers, competitors and resources better than our competitors understand them and us.

What do we need to do?

• It is not a difficult task but it, probably, will not get done without a system of economic incentives and mandates.

• The longer we wait to accomplish this goal, the longer our global competitiveness will be at risk and our economy will continue to be under pressure. – We need to move quickly.