Becoming an Effective Global Manager: 

How to operate effectively in the international marketplace.

"It has never been easier to go global" says Colin Coulson-Thomas, speaking today to young business leaders during a Next Generation Network event at University of Greenwich Business School, London.

The horizons of ambitious managers today embrace the globe. Deregulation, privatization and market forces have eroded trade barriers. Budget airlines have reduced travel costs.

Work can follow daylight around the globe allowing 24 hour a day operation. Resources can be accessed and activity undertaken locally, regionally or at global level depending upon requirements and comparative costs. Sole traders and jungle natives use websites and email to make direct contact with customers all over the world

A generation ago in an era of trade barriers and protectionism international travel was relatively expensive. Expatriate managers from national champion companies set up and ran overseas subsidiaries. They and local representatives who understood cultural differences were subject to standard operating procedures and monitored by large, global and bureaucratic head offices.

Today businesses with a global corporate identity and operating in a world of global e-commerce and social networking are more likely to give responsibility to local nationals and work collaboratively with customers and business partners. In an era of lower communications costs people have become more aware of common aspirations and interests, and of opportunities for bespoke responses.

However, operating in the international business environment also presents new challenges. There are commercial, legal and financial risks to consider. There are obstacles of distance, culture and time to overcome. An investigation led by the author has compared* the approaches of successful international operators with those of businesses that find it hard going. Comparing them reveals some ‘dos’ and ‘don’ts’ for those with aspirations to go global.

A revolution is underway in the ease with which opportunities and work can be moved around the world. Learning and lean, flexible and virtual operations have become more important. Pioneers are using a new generation of support tools to free people of dependency upon particular locations, support mobile activities, relocation and outsourcing, and make it easier for people to do difficult jobs at any time and any where.

Thinking global is the first step towards acting global. To take it you need to be aware of what is happening abroad. When you touch down be open to new influences and receptive to alternative ideas. Retain a sense of perspective. Business people around the world may watch international news, but international media organizations have regional offerings, and requirements for products can vary between national markets. The significance of borders will depend upon the business you are in, 

Don’t be overawed by the claims of others. Some so-called international companies are still national enterprises that trade internationally. People who travel a lot sometimes hold onto stereotyped views or exaggerate national characteristics. Living and working abroad can reinforce existing prejudices. Some make an effort to adjust and adapt. Others don’t.

Appearances at international meetings can be deceptive. A manager who might seem formal and detached may contribute as much as a more voluble one. Reluctant participants might observe a consensus outcome while delightful and charming colleagues from another country may refuse to implement decisions they disagree with.

Knowledge of the best bars in Amsterdam, Barcelona or Venice does not distinguish an ‘international manager’. Attitudes, approaches and perspectives do. Internationally aware mangers are alert to developments in the global business environment.

True internationalization requires more than an ability to speak foreign languages. Respect other viewpoints. Be tolerant of national differences. Actively support cultural diversity. Seek opportunities for foreign travel. Participate in overseas exchanges and job swaps. Join international project groups, task forces and teams.

Companies like countries can have distinct cultures.  Be sensitive to differences and similarities in national assumptions, attitudes, and motivations. Try to reconcile conflicting interests, while recognizing that particular local requirements create opportunities for bespoke offerings.

Customer segments may or may not coincide with national borders. Experienced international operators are intuitive and cross-culturally aware. Learn to handle diversity and relationships with overseas colleagues. Mutual expectations need to be realistic and compatible. Address practicalities such as whether technologies are compatible.  (This last point is easily understood in the context of local access networks – things that work well in Sweden or Japan or Latvia may not be appropriate in countries like the UK where digital access networks are underdeveloped.  Editor)   

Don’t be pre-occupied with yourself. Focus on the people you would like to establish, build and sustain relationships with. Understand them. Empathize with them. Respond to their aspirations, hopes and fears. People likely to be interested in what you have to offer may be widely scattered. Keeping opportunities to yourself, trusting no one and operating alone will stunt your growth. Form relationships with complementary collaborators. 

Some managers have a distorted understanding of overseas situations and harbour naïve expectations of international initiatives. Be realistic. Think through the implications of what you are setting out to do. Anticipate likely consequences, consider probable outcomes and assess possible reactions. Be prepared to address potential problem areas.

Recognize fundamental national differences and match words and deeds. Don’t advocate diversity and variety, and then insist upon common approaches. Don’t impose standard solutions that are inappropriate in particular locations. Wherever possible, tailor your approach to local circumstances and individual requirements. Aim to communicate with customers and prospects in ways that are acceptable to them. Use languages they understand. If your intention is to become an international rather than a European player, you may need to give greater priority to Spanish and Portuguese.

Some executives talk about internationalization but then make sure that all key positions are in the hands of ‘home country’ nationals. Diversity can be a spur to creativity. If you get the chance, recruit and develop a multinational cadre of managers. Ensure opportunities go to those who are best qualified for each role.

Try not to force internationalization down your colleagues’ throats. Let it occur naturally and tackle problems as they arise. Do not foist a single corporate culture on employees, customers and suppliers regardless of differing local conditions and unfavourable circumstances. Match your management style to how people you wish to develop closer relationships with operate. Allow people to network and forge whatever cross-border relationships will best enable them to achieve their objectives.

Before you set up joint ventures with overseas businesses make sure you and your colleagues are equipped to manage them. Be prepared to devote time to making them work. Because of the effort involved select prospects with care. Learn from your mistakes, and from your customers, suppliers and business partners.

In particular, ensure that people are properly supported when overseas operations are established. A new generation of support tools that make it easy for people to understand complex areas and emulate the superior approaches of high performers is enabling higher level work to be quickly outsourced and/or moved offshore. Early adopters report better performance, lower costs, speedier and bespoke responses, increased understanding, reduced stress, less risk and enforced compliance. Large returns on investment result.

Effective international relationships are based on trust and respect. Lasting partnerships depend upon compatible interests. Establish a shared vision, common values, joint goals and agreed objectives. Consciously create mutually beneficial arrangements. Monitor reactions and be alert to changing requirements. Celebrate, enjoy and sustain success.

_____________________________________ 

Editorial Notes

* The findings relating to successful internationalization and the other areas examined are summarized in: “Winning Companies; Winning People” by Colin Coulson-Thomas which is available from www.policypublications.com

This paper is taken from 'The Big Picture'  seminar series at University of Greenwich Business School.  © Colin Coulson-Thomas, 2010.

Colin Coulson-Thomas, an experienced chairman of award winning companies, author of “Winning Companies; Winning People”, and a member of the business school team at the University of Greenwich has reviewed the winning business processes and practices of over 100 companies, helped over 100 organisations to improve director, board and corporate performance and spoken at over 200 national, international and corporate events in some 40 countries. He can be contacted via www.coulson-thomas.com