
A matter of cultural fit
Is it better to send or hire the management talent needed to launch and run a successful overseas operation? As managing partner of Ray & Berndtson's Singapore practice, I'm often asked this question by clients planning to launch or expand Asian offices. Multinationals like IBM, Nokia, PepsiCo and Deutsche Bank are constantly on the hunt for qualified local executives. They frequently wrestle with the decision to send a headquarters "expatriate" to manage in a foreign location or to hire a "local national" skilled in navigating the business culture. While the manager's expertise, experience and ability to execute the client's strategy are essential selection criteria, the right culture fit is also an essential consideration.
The reality is, business standards and practices generally reflect the cultures in which they are rooted and vary widely by continent, by country, and even by region particularly in Asia. Since the ability of a company to succeed in another country rests heavily on the local manager's ability to function in that country's culture, executives with no cross-cultural experience can, regardless of other professional credentials, unwittingly wreak havoc with corporate plans abroad.
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