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Growing pains in fast emerging companies
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Global expansion yesterday
Growing pains in fast emerging companies
Globalization Highest quality product/service, to
Most profitable worldwide markets, at Lowest cost, under
Changing market, competitive, regulatory conditions, through Sourcing raw materials, technology, capital, and talent
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Global expansion today
Globalization 2.0 More competitors, in More markets, under
More pressure, to produce Faster results, with
Fewer resources and more limited talent pools
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Traditional solutions are increasingly unsuitable in today’s context
► Large companies ► Well known brands ► Big world ► Small data ► Modest expectations ► Willing employees
► Small, medium and large ► Lesser known brands ► Small world ► Big data ► High expectations ► Demanding employees
Yesterday Today
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New approaches are required
Five keys to better, faster global expansion
Improve leader pipeline
Manage immigration & taxes
Align HR as strategic partner
Balance global and local
Leverage cultural differences
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1. Improve leader pipeline
Problem Solution Data Success
Unable to find
candidates
Integrated approach
Multiple sources
Combined
“push and pull”
Case example
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1. Improve leader pipeline
Talent risk management
Top team effectiveness The “Top Team”
Tomorrow’s leaders
Emerging talent
Growth acceleration
Identification and
development
Different focus at different levels
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1. Improve leader pipeline
Execution
Strategy
Internal External
Strategy
Growth Return
Execution
Shipbuilder Explorer
Navigator Captain
Cartographer
Different profiles for different challenges
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2. Balance global and local
Global consistency
(control)
Local adaptability (efficiency)
Controlled Reconciled
Independent Undirected
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3. Manage immigration and taxes
Regulatory and compliance complexity
Economic policy
Socio-political environment
Challenges in the Developed World
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Recent developments increasing immigration complexity
► Tax Information is increasingly part of the work visa application and renewal requirements
► Increasing justifications for foreign hires ► Addition of exit clearance requirements ► Countries are increasingly improving immigration record
keeping and data matching programs Result: Companies are increasingly challenged in driving fast growth where many of these additional requirements demand an on-the-ground presence or specific location
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3. Manage immigration and taxes
Less developed legislative system
Disseminated administration
Insufficient judicial
precedence
Risk of unknown Challenges in the developing world
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Importance of compliance
What? ► Avoid administrative sanctions ► Avoid financial penalties ► Protect personnel from prosecution ► Ensure client and customer confidence in your company How? ► Ensure all employees are aware of the requirements: travellers,
recruiters, and contracting teams ► Create a policy and training/communication plan ► Ensure senior management awareness and support on compliance ► Make sure costs and timeline are built into the bid/plan/results timeline ► Manage data (establish database and reporting mechanism)
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4. Leverage cultural differences
Equal or unequal?
Alone or together?
Rigid or flexible?
Today or tomorrow?
Tough or tender?
Power distance
Uncertainty avoidance
Individualism ̶ collectivism
Confucian dynamism
Masculinity ̶ femininity
Model of national culture
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4. Leverage cultural differences
Dealing with national culture
Create awareness
Cultivate understanding
Choose the right balance
Collaborate on solutions
Celebrate successes
1 2
3 4
5
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5. Align HR as strategic partner
Small or start-up countries
Com
plex
ity
Development level
Minimum (Basic working elements)
Medium (Corporate standard processes)
High (Complex HRM)
Medium or transition countries (Integration)
Integrated subsidiaries with an important number of resources that need a high complexity level of resources management.
Match the HR set-up to the needs of the business
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5. Align HR as strategic partner
Minimum Integration
Basic HRM • Labour framework
• Compensation
framework
• Sourcing and recruiting
• Personnel administration
• Database maintenance
High Integration Complex HRM
• Talent pipeline
management
• HR metrics
• Dashboard analysis
• Resources management
• Delivery model
Medium Integration Standard HRM
• Staff planning
• Career
management
• Compensation Model
• Training plan
• Resource management
• Staff Planning
Growing pains in fast emerging companies