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ASSUMING A NEW leadership role is hard even in the best of cir- cumstances: relationships are undefi ned, routines are unfamil- iar, and expectations are oft en unclear. Now imagine yourself heading up a new unit or project in a corporate and national culture radically diff erent from your own. To strengthen their CVs, many ambitious executives willingly learn new languages, uproot their families, and puzzle over local laws and customs.

But an international management assignment can be a har- rowing journey of sorts. Indeed, if they’ve never made an inter- national move before, emerging leaders can fall into common traps that severely stress their family bonds, negatively aff ect their performance at work, damage their businesses, and even derail their careers.

That’s what it was like for a leader we’ll call Oscar Barrow. Six months into a new assignment in China, he had made

several serious missteps with employees, the plant he’d been charged with turning around quickly was still struggling, and his tough corporate-lawyer wife was in meltdown mode. What happened?

Change Is Good – or Is It? Oscar had worked for 10 years at a U.S.–based pharmaceuticals fi rm, moving relatively quickly from an entry-level position in manufacturing all the way up to a post as general manager in one of the company’s biggest domestic plants. The next logical step, he knew, was a trip overseas. That path would dovetail with his wife’s decision to leave her job as a partner at a lead- ing law fi rm to spend more time caring for their two toddlers. The pharmaceuticals company boasted multiple operations in China, and he eagerly anticipated the challenge of living and

Three Keys to Getting an Overseas Assignment Right How to tackle a management role in a new cultural and regulatory environment

Managing Yourself BY MARK ALAN CLOUSE

AND MICHAEL D. WATKINS

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Managing Yourself Three Keys to Getting an Overseas Assignment Right

working thousands of miles from his na- tive New Jersey.

Oscar moved to China six weeks ahead of Jennifer and their children. Away from the family, he had time to di- gest all the available data on the plant’s performance, and he spent a lot of time on the factory fl oor studying operations. Told by his boss, who had fi red the previ- ous GM, that he needed to turn things around, Oscar questioned employees vigorously about problems at the facil- ity and their root causes. He came away confi dent that he understood exactly what needed to be done.

As the weeks passed, Oscar became less and less sure of himself. Many of his new team members spoke English poorly. Additionally, they were used to following orders, so it was hard for Oscar to have a dialogue with them (his pre- ferred style of communication) about what needed to happen. Still, turning the plant around would require clear, top-down mandates for change, so he presented an aggressive plan – which in- cluded shutting down a production line, reconfi guring two support groups, and laying off about 5% of the workforce – to

the senior managers and expected them to fall in line. They listened politely but said little and did less, and the plan went nowhere.

Even when he tried to reinforce posi- tive behavior among his staff members, Oscar found himself making mistakes. Two months into his transition, for in- stance, he decided to recognize the out- standing production forecasting model created by a plant analyst. He praised her contribution in a meeting of the plant supervisors and was shocked by their reaction. Everyone looked down while the analyst squirmed uncomfort-

ably in her seat. Only later, in a conver- sation with the head of HR, did Oscar realize that his focus on individual achievement ran counter to Chinese culture and its elevation of the collec- tive over the individual.

Making matters worse, Oscar had undercut his recent address to staff ers about “doing business the right way” by endorsing a visa application for a group of local Chinese offi cials who wanted to travel to the U.S., without really under- standing what the group would be doing,

where it would be going, and so on. His employees now viewed him as someone who would OK all kinds of requests, ap- propriate or not.

Meanwhile, Jennifer and the children had arrived in Beijing and were off to a shaky start: The pollution was far worse than she had expected, few of her neigh- bors spoke English well, and Jennifer had diffi culty fi nding child-care provid- ers with whom she could communicate. Oscar and Jennifer had decided that if they were going to commit to living and working in China, they wanted to im- merse themselves in the culture, so they

had opted to live in a neighborhood favored by the Chinese middle manag- ers at the plant rather than one inhab- ited primarily by expatriates. This left her isolated, as she tried to set up the house and fi gure out the basics of liv- ing in China. Just a few weeks aft er his family had arrived, Oscar came home one night to fi nd Jennifer in tears. “Five months ago, I was telling top executives what to do,” she said with a sob. “Now I can’t even ask the store clerk where to fi nd the laundry detergent!”

The International Assignment Challenge Oscar’s story demonstrates the com- plexities of making a successful transi- tion from a leadership position in a familiar setting to a position of similar or even greater responsibility overseas. Although the recession is forcing com- panies to be more selective about over- seas relocations, major fi rms continue to send managerial talent to strategi- cally important countries such as China, India, Brazil, and the UK. Counting on expansion overseas to drive profi table growth, these organizations recognize the critical need to develop a cadre of

“global” leaders who have the intellect and experience to move fl uidly among diverse markets and cultures, and who can transfer systems, processes, and technologies around the world.

For their part, executives who gain international experience early in their careers enjoy greater agility and adapt- ability over the course of their work lives. They generally deal with complex man- agement issues more adroitly than their

“domestic” peers do. They also open themselves up to a broader set of oppor- tunities, particularly in today’s global and heavily matrixed organizations.

So how do companies and leaders make sure they reap these benefi ts? Through our studies of international moves like Oscar’s, we have identifi ed several fundamental principles for tackling the inevitable challenges that come with personal and organizational change. These simple rules can make the

IDEA IN BRIEF

International experience is ■ as valuable as ever – par- ticularly in today’s global organizations.

But the personal challenges ■ of an overseas assignment are also as daunting as they’ve ever been.

Settling your family, adapting ■ your communication style, and understanding the new regulatory environment are critical for transitioning suc- cessfully, the authors say.

Oscar and Jennifer compounded their diffi culties by choosing not to live in an expat community.

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diff erence between a successful leader- ship transition and a failed one. (For the complete list, see Your Next Move, Har- vard Business Press, 2009.) Specifi cally, here are three principles for personal eff ectiveness in an overseas assignment.

Principle 1: Establish the Family Foundation First You can’t be successful in your new role if your home life is in chaos. Some over- seas assignments go to people without spouses or children; these managers need to set up support networks to com- bat feelings of isolation and dislocation. Here we’ll focus on the majority of ex- pat leaders, who relocate to foreign cities with their families. It’s crucial to have in-depth, honest conversations about international assignments with your spouse – long before you make specifi c decisions about which opportunities you are (or are not) willing to pursue. You’ll both need to consider all the dimensions of change: the magnitude of the culture shift ; the distance from home; the type of living situation you’ll be in; your spouse’s ability to fi nd friendships, work, and other affi liations; and, if applicable, the schools your children will attend.

For Oscar and Jennifer, the move to China posed a greater challenge than they could fathom: According to a sur- vey by Brookfi eld Global Replacement Services, China was the top destination for globally relocated executives in 2008, but it was also the location with the highest rate of assignment failure, be- cause of the radical diff erences in living conditions and business environments. In discussing the move with his wife, Oscar glossed over things like dirty air and language barriers. He emphasized how good it would be for his career and for the children’s cognitive and social development. Also missing from that conversation was any acknowledgment of the big change Jennifer had just expe- rienced – giving up a high-powered job to devote more time to the family.

If you minimize disruption for the family, you can increase the odds that everyone will thrive in the new setting.

For children, you should try to time the move to coincide with a natural break in their schooling. You should also ar- range for extra support for your spouse while you’re setting up shop. This in- between time can be stressful for every- one – Jennifer learned the hard way, as she worked solo to prepare the couple’s apartment for sale and pack and ship their belongings to China.

Oscar and Jennifer compounded their diffi culties by choosing not to live with other expats in a community designed to meet their needs. The impulse to live “with the people” is laudable and can certainly be rewarding. But for most managers, such a choice is inadvisable, particularly when the culture change is signifi cant and when you’ve never relocated to another country. A crucial factor in making a smooth transition is to retain as much of the familiar as possible.

With that in mind, even before you step foot on a plane, identify the re- sources (spousal support networks and career and other counseling services for expatriates) that can help in your new location. Establish e-mail relationships with future colleagues so that from day one members of your family know people in country. If you have children, try to connect with other expats who have children the same age or attend- ing the same school. Maintain regular communication with colleagues, friends, and family back home – invite them to visit, or even establish a blog that re- counts the family’s adventures in your new home.

Principle 2: Build Credibility and Openness from the Start New leaders tend to focus on the prob- lems fi rst – they try to fi x what’s wrong, especially if the new role has been billed

Everyone may already be in a defensive mind-set; it takes only a little reinforcement to cast this in concrete.

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Managing Yourself Three Keys to Getting an Overseas Assignment Right

as a turnaround, as Oscar’s was. The risk is that they’ll send the message “There is no good here.” While this is a pitfall for every new leader, it’s particularly problematic when one is moving from the home offi ce to an international as- signment: Everyone in the organization may already be in a defensive mind-set; it takes only a little reinforcement to cast this in concrete.

To avoid this trap, ask people lots of questions instead of making state- ments – even if, like Oscar, you’re pretty sure you know what the central issues are. Let colleagues and employees validate (or disprove) your theories, and avoid focusing exclusively on what’s wrong rather than what works, or on the data you don’t have versus the information you do. Setting up your offi ce can wait. Go to the front lines right away, wher- ever they are, and really listen. If you start reaching out on day one, word will quickly spread across the organization.

While you’re still planning for your arrival, you may want to take stock of the stereotypes that might be associ- ated with you, be they cultural, organi- zational, or even specifi c to your history with the company. Play against these stereotypes – using the local language, say, or demonstrating in meetings that you understand the strengths, problem areas, and idiosyncrasies of the organi- zation you’re entering. Oscar’s failure to appreciate how Chinese culture diff ers from U.S. culture was apparent when he singled out the young plant analyst.

Oscar would have done well to iden- tify some “cultural interpreters” inside and outside the company. Ideally, you will fi nd at least two: an expatriate who has a lot of experience working in the culture you’re moving to, and a native who has a lot of experience working with expatriates. They can help you translate and deliver your intentions and ideas in context-appropriate ways. Even a leader with strong emotional in- telligence in his home country can make grave miscalculations in a new culture.

Finally, if you have time, you should develop a written plan for your entry

Creating Your Entry Plan Executives can personally prepare themselves for an interna- tional assignment. Here’s a suggested to-do list.

The days, weeks, and months leading up to your new assignment are crucial – and potentially mad- dening as you sort out the personal and profes- sional challenges you’ve taken on.

Before You Move to a New Country

After You’ve Moved to a New Country

Read as much as you can, gathering internal and external perspectives on the market and consumers. You won’t be- come an expert, so don’t even try. It’s awareness you’re looking for.

Identify local consultants who can brief you on the state of the market and the competitive environment. Set up meetings ahead of your ar- rival, and follow through when you’re in country.

Start learning the lan- guage. You may never become fl uent, but your attempts will demonstrate respect.

Develop hypotheses about the situation you are enter- ing: Is the organization in turnaround, realignment, or some other life-cycle stage? What’s the overall climate within the company? How deep is the talent pool?

Consult with your new boss, talk to critical stakehold- ers, and review any available performance data to gather insight and begin testing your hypotheses – but keep your views to yourself at this stage.

Without a good idea of what you’ll say and do in the fi rst 24 hours, the fi rst week, and the fi rst month, you risk getting caught up in crisis manage- ment – reacting to each organizational fl are-up rather than moving your own strategic agenda forward. You need to create and carry out a four- phase plan.

Diagnose the situation and align the leadership team around some early priori- ties – but don’t focus only on what’s wrong.

Establish strategic direc- tion and align the organization around it.

Fix important systems and processes and strive for consistent execution.

Encourage the develop- ment of local talent in antici- pation of your eventual exit.

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into the company. (For guidelines on how to do this, see “Creating Your Entry Plan.”) Share it with your new direct re- ports, regional HR staff ers, and your boss, so that they’ll understand how you in- tend to lead change at the organization.

Principle 3: Get Serious About Compliance Business standards and the “rules of the game” can change dramatically when you move from one corporate and cul- tural climate to another. Local perspec- tives on what’s appropriate for business (and what isn’t) won’t necessarily match yours or those of the home offi ce; some- times that’s fi ne, but sometimes it’s fa- tal. The reality is that local auditing and other compliance systems may not fully protect you and your reputation.

It’s critical for transitioning interna- tional executives to consider, identify, and manage compliance issues. Indeed, they need to take on the unoffi cial role of chief compliance offi cer, systemati-

cally asking people on the front lines detailed questions about their actions, and moving quickly once problems arise. Most important, you must be able to dif- ferentiate between serious compliance lapses and unfamiliar but acceptable ways of doing business. This is especially important for leaders who are respon- sible for sales and operations; the risk factors here might include questionable deal-making practices (in sales) and poor quality control or contaminated raw ma- terials (in operations). Any perceived lapses in a manager’s judgment can cast a long shadow – as Oscar learned the hard way. By approving the travel visas, he considerably weakened his credibil- ity within the organization. Here again, cultural interpreters can be invaluable. Imagine if Oscar had tapped a trusted ad- viser, someone with years of experience on the ground in China – someone who might have steered the transitioning leader away from picking up that pen.

• • •

The journey can be unpredictable, and the pitfalls many, but an international assignment can be among the most excit- ing and challenging transitions an aspir- ing leader can undertake. With the right planning and attitudes, these leadership roles can stretch capabilities, challenge assumptions, and steer both people and profi ts in a positive direction.

Mark Alan Clouse is the managing director of Kraft Foods Brazil. He was previously managing director of Kraft in greater China. Michael D. Watkins ([email protected]) is the chairman of Genesis Advisers, a Newton, Massachusetts–based leadership develop- ment fi rm. He is the author of The First 90 Days: Critical Success Strategies for New Leaders at All Levels (Harvard Business Press, 2003). His new book is Your Next Move (Harvard Business Press, 2009).

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