A new world for business expats

business, live/study abroad — By Bob Riel on November 28, 2007 at 7:07 am

The world of the business expatriate is not what it was a decade or two ago. The destinations are different, the cultural challenges have changed, and new business skills are needed for success abroad. That’s the opinion, at least, of this interesting article in Time magazine, which focuses especially on executives who work in China and India.

The expat gig used to be a cushy one for U.S. executives of a certain level: jet into Tokyo or Paris, tuck family into American schools and clubs, slide into fully established local office as the bigwig from headquarters. It was more of an exotic detour for loyal lifetimers than a slingshot into directorship for the young and ambitious–but who cared?

Somewhere, perhaps in Tokyo or Paris, that old-timey expatriate still sips his midday martini at the foreigners’ club. But in the rough-and-tumble markets of China and India, a new generation of expats–they prefer “global executives,” thank you–haven’t yet had a chance to sign up for membership. They’re too busy chasing local talent, adapting to a wildly different culture and riding phenomenal growth in markets vital to their companies’ futures…

The U.S. expat population has leaped over the past five years, according to experts, in large part because of growing delegations to China and India. And yet the two emerging giants remain famously tough for Western executives to navigate. In a 2006 survey by GMAC Global Relocation Services, they are cited among the three most difficult locations for expats (the third is Russia). Corporations are learning that these 21st century markets require a new kind of expat.

What are some of the cultural and business challenges now faced by expat executives in these Asian nations?

The right leader in China and India, for many companies, is someone with the drive and creativity to manage what often feels like a start-up. The highest hurdle is usually building a local workforce from the ground up in savagely competitive labor markets…

In India, Leonhardt has to wage a full-court recruiting press. Candidates might receive dozens of offers, accept them all–then simply show up at the one that’s most appealing. Leonhardt estimates that as many as 3 in 10 accepted hires are no-shows on the first day of work. “It’s pretty frustrating, as you can imagine,” he says.

Employers there thus use what’s called a keep-warm strategy, in which newly approved hires are plied with informational packets, calls from executives and even small gifts for their parents … before their first day of work. Appealing to workers’ filial loyalty is so critical in India that some employers fly parents to headquarters for visits, and at least one is said to offer parents free Internet service. Target competes by offering health insurance to workers’ parents.

Once a team is in place, expat bosses often have to reinvent themselves as managers. Lin Chase, 44, arrived in Bangalore in January 2006 to head Accenture’s research and development lab. “I come from a culture where people love a plan,” she says. “The plan is God.” Not in India. She would step away from meetings confident that a plan was in place and wait for its execution. And wait. And wait. “It happened so many times that finally I changed my whole style,” says Chase. “I talk to my team every day, ask them how it’s going. I spend a huge proportion of time chasing people for commitments they made to me, but now I see it less as chasing than as a relationship.”