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Was their tenure worthwhile from a personal and organizational standpoint? Overall, the results of our research were alarming. Of those who stayed for the duration, nearly one-third did not perform up to the expectations of their superiors.
And perhaps most problematic, one-fourth of those who completed an assignment left their company, often to join a competitor, within one year after repatriation. If getting the most out of your expats is so important, why do so many companies get it so wrong? The main reason seems to be that many executives assume that the rules of good business are the same everywhere.
Take the expat assignment process. Executives know that negotiation tactics and marketing strategies can vary from culture to culture.
Most do not believe, however, that the variance is sufficient to warrant the expense of programs designed to select or train candidates for international assignments. Further, once expats are in place, executives back home usually are not inclined to coddle their well-paid representatives.
Finally, people at the home office find it difficult to imagine that returning expats need help readjusting after just a few years away. As a result of such thinking, the only time companies pay special attention to their expats is when something goes spectacularly wrong. Of course, some companies do engage in serious efforts to make foreign assignments beneficial both for the employees and the organization. Very often, however, such companies consign the responsibility of expat selection, training, and support to the human resources department.
As a result, they often get bogged down in the administrative minutiae of international assignments instead of capturing strategic opportunities. Over the past several years, we have concentrated on examining the small number of companies that have compiled a winning track record in the process of managing their expats. Their people overseas report a high degree of job satisfaction and back that up with strong performance.
These companies also hold on to their expats long after they return home. The companies that manage their expats effectively come in many sizes and from a wide range of industries. Yet we have found that they all follow three general practices:. When making international assignments, they focus on knowledge creation and global leadership development.
Many companies send people abroad to reward them, to get them out of the way, or to fill an immediate business need.
At companies that manage the international assignment process well, however, people are given foreign posts for two related reasons: They assign overseas posts to people whose technical skills are matched or exceeded by their cross-cultural abilities.
Companies that manage expats wisely do not assume that people who have succeeded at home will repeat that success abroad. They assign international posts to individuals who not only have the necessary technical skills but also have indicated that they would be likely to live comfortably in different cultures. They end expatriate assignments with a deliberate repatriation process.
Most executives who oversee expat employees view their return home as a nonissue. The truth is, repatriation is a time of major upheaval, professionally and personally, for two-thirds of expats.
Companies that recognize this fact help their returning people by providing them with career guidance and enabling them to put their international experience to work. For as long as companies have been sending people abroad, many have been doing so for the wrong reasons—that is, for reasons that make little long-term business sense.
Foreign assignments in glamorous locales such as Paris and London have been used to reward favored employees; posts to distant lands have been used as dumping grounds for the mediocre.
But in most cases, companies send people abroad to fill a burning business need: Immediate business demands cannot be ignored. But the companies that manage their expats effectively view foreign assignments with an eye on the long term. Even when people are sent abroad to extinguish fires, they are expected to plant forests when the embers are cool. They are expected to go beyond pressing problems either to generate new knowledge for the organization or to acquire skills that will help them become leaders.
The Best & Worst Places for Expats in 2018
Imagine a large Canadian company that wants to open a telephone-making plant in Vietnam. It would certainly send a manager who knows how to manufacture phones and how to get a greenfield facility up and running quickly.
Companies that manage their expats effectively, however, would require more of the manager in Vietnam. Once the plant was established, he would be expected to transfer his knowledge to local professionals—and to learn from them, too.
Together, they would be expected to generate innovative ideas. Instead, it operates 36 centers in 11 countries—from Finland to China to the United States. Senior executives scan their global workforce for engineers and designers who are likely to generate new ideas when combined into a team. The approach works well: Nokia continues to grab global market share by rapidly turning new ideas into successful commercial products, such as the Nokia series mobile telephones that were launched last year in Beijing and have quickly captured a leading position in markets around the world.
Other companies have more need to focus on the second reason for international assignments: Such intangibles come instead as a result of having spent more than one sustained period working abroad. Indeed, the only way to change fundamentally how people think about doing business globally is by having them work abroad for several months at a time.
Everyone has a mental map of the world—a set of ingrained assumptions about what people are like and how the world works.
But our maps may not be able to point us in the right direction when we try to use them in uncharted territory. Consider the case of a tall American businessman who, during a recent trip to Japan, dined at a traditional restaurant. Upon entering, he bumped his head on the doorjamb.
The next day, the same thing happened. It was only on the third time that he remembered to duck. People on international assignments hit their heads on doorjambs many times over the years.
Eventually, they learn to duck—to expect that the world abroad will be different from the one they had imagined.
Hard experience has rearranged their mental maps or, at the very least, expanded the boundaries on their maps. It is with such a broadened view of the world that global leaders are made. Stephen Burke arrived in France with the same mental map of the company as the senior managers at home.
He believed, for instance, that families and alcohol do not mix at Disney theme parks. A glass of wine with lunch was as French as a cheeseburger was American. He succeeded.
Because of those and other changes, attendance and hotel occupancy soon skyrocketed, and EuroDisney posted its first operational profit. After living in France, I came to look at the world quite differently. The two principal goals of international assignments—generation of knowledge and development of global leaders—are not mutually exclusive.
But it is unlikely that an international posting will allow a company to achieve both goals in every case or to an equal degree. What matters, however, is that executives explicitly know beforehand why they are sending a person overseas—and that the reason goes beyond an immediate business problem. Just as important, it is critical that expats themselves know the rationale for their assignments.
Are they being sent abroad to generate knowledge or to develop their leadership skills?
At the effective companies we studied, this kind of information helps expats focus on the right objectives in the right measure. For example, a communications company recently transferred one of its top lean-manufacturing experts from Asia to the United States. His task was to help managers understand and implement the practices that had been perfected in Singapore and Japan. Knowing the main purpose of his posting, the expert was able to focus his energy on downloading his knowledge to other managers.
Moreover, he did not build up unrealistic expectations that he would be promoted after returning home. Companies with foreign operations will always face unexpected crises from time to time. Just as managers often send people abroad for the wrong reasons, they frequently send the wrong people.
Indeed, technical skill is frequently the main reason that people are selected for open posts. But managers often send people who lack the ability to adjust to different customs, perspectives, and business practices. In other words, they send people who are capable but culturally illiterate. After all, successfully navigating within your own business environment and culture does not guarantee that you can maneuver successfully in another one. We know, for instance, of a senior manager at a U.
What was worse, the man was unwilling to change his way of doing business. How do you weed out people like the man who failed in Korea? The companies that manage expats successfully use a variety of tools to assess cultural sensitivity, from casual observation to formal testing.
Interestingly, however, almost all evaluate people early in their careers in order to eliminate some from the potential pool of expats and help others build cross-cultural skills. Although the companies differ in how they conduct their assessments, our research shows that they seek the following similar characteristics in their expats:.
To identify such people, the most effective companies in our research scanned their ranks for employees who were both enthusiastic and extroverted in conversation, and not afraid to try out their fractured French or talk with someone whose English was weak. The tendency for many people posted overseas is to stick with a small circle of fellow expats.
By contrast, successful global managers establish social ties to the local residents, from shopkeepers to government officials. Andresen M. Self-Initiated Expatriation. Arthur M. Aycan Z, Kanungo R.
Banai M. Bevarstock J. Biemann T. Boski P. Boyle P. Bozionelos N.
The Right Way to Manage Expats
Brewster C. Carr S. Castles S. Cerdin J. Collings D. Dickman M.
Doherty N. Drivers, employument experience and career outcomes [in:] Andresen M. Feltham R.
Furnham A. Carr ed. Giddens A. Glick-Schiller N. Green N. Harrison D. Martochio ed , Research in personnel and human resources management, vol. Haslberger A. Vaiman, A.
Haslberger eds. Howe-Walsh L.Criteria that are predictive of acculturation and produc- tivity in the overseas assignment have been delineated by a number of authors Abe and Wiseman, ; Church, ; Hawes and Kealey, ; Mendenhall and Oddou, ; Oddou and Menden- hall, ; Ratiu, ;Stening, ; Torbiorn, ; Tung, 1; Zeira and Banai, , and are summarized in Table I.
When expats negotiate with foreigners, the potential for conflict is much higher than it is when they are dealing with compatriots. Eventually, they learn to duck—to expect that the world abroad will be different from the one they had imagined. Harvard Business Review, , Work, however, was not really a top priority for moving to Ecuador.
New York: Nichols Publication Company, , p. Companies that send the right people abroad have identified individuals who respect diverse viewpoints; they live and let live.
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