‘Enter the Dragons’ Den’ by Alicia Clegg, Management Today, January 2012

This article builds on a theme that has been covered in several recent blogs, the need for those with top management ambitions to get international experience, particularly in the bigger growth markets of India and China.  Like most articles in Management Today, it is quite short but, unlike many, it shows considerable knowledge and provides many insights.

The article starts by suggesting that the conventional solution for those who want to gain international experience has been to look for a stint in the local operation of a major multinational.  However, this is unlikely to provide the necessary insights because the cultures of such operations tend to reflect their country of origin.  At MTP we can confirm this; a group of managers from a multinational business are a totally different challenge from those working for a local company.

The author therefore argues that the really ambitious potential CEOs should be - and increasing numbers are - looking for a post in locally owned businesses which truly reflects the national culture.  And it is argued that such opportunities are around because many such companies are looking for western managers to spearhead their global ambitions.

The downside is that fewer than half of such ambitious managers make the transition successfully, with many lasting less than a year.  This is because of a failure to adjust to the different culture, for instance in Asia it is hard to adapt to the length of time in decision making and the speed of execution once decisions are made.  An even more difficult adjustment is the importance of out of hours socialising, an essential part of senior jobs in Japan, India and China.  There is also a failure to understand the complex power structures and the importance of age and seniority.

Though I found the article valuable and topical, I was surprised not to read anything about that most recent drama in Japan, the attempt by Michael Woodford, British CEO of Japanese company Olympus, to unseat his fellow board members.  Here was a current battle that backed up this point in spades; it showed that, even with right on your side, you cannot be sure of defeating those with history, culture and seniority to protect them.

The author puts forward two examples of managers who have taken this career road, one in India, one in China.  Both happen to be women, though the article makes it clear that this is not typical; one of the barriers to finding senior positions in such companies is the continued dominance of men, for instance only 12% of those in senior positions in India are female.

The article also makes it clear that this is a two way street.  For some time indigenous companies with truly global ambitions have been realising that their senior management has to have multinational experience.  In a few years’ time it will be normal for CEOs from China and India to be running companies of western origin and for western CEOs to be running major companies in Asia.  And their success will depend on how well they adapt to different corporate and national cultures.

Click here to view the article in full:

http://www.managementtoday.co.uk/features/1109849/business-developing-economies-enter-dragons-den/