The Leading Edge - Spring 2008 - (Page 11)

ness in the early 1990s. Her partner, a man, was treated like a member of the family. As such, their client paid him when they felt like it and considered him the low man on their family totem pole. Zuckerman’s assertive and direct style was not well-received. “I was very confrontational, which probably led to more battle zones than they would have liked,” she says. She learned another lesson while trying to collect a bill from another client, a Dutch trade show company. Zuckerman turned to her Holland representative to collect the money. However, the representative was intimidated. Zuckerman pressed. Eventually, the representative quit because the trade show company’s nonpaying executive was a member of the country’s aristocracy—something Zuckerman didn’t know. Zuckerman says failing to understand the class structure lost her the representative. “I put him in a position that would embarrass him,” she says. Zuckerman says companies must rely heavily on a local representative if they do not have a physical presence in the country. “Get a native agent who is on the scene and, knows the culture better,” she says. “It has to be someone you trust and get to know.” tive for us and is one reason why we have one of the lowest unplanned rates of attrition at less than 5 percent,” Fernandez says. He offers these tips on how to operate a successful global company: • Build relationships with local universities to ensure a steady flow of their top talent. • Define a clear career model for advancement and retention. • Ensure your physical facilities are built for supporting a world-class global company. • Develop satellite resource locations to keep costs low. • Focus on minimizing employee turnover through a solid professional program. • Communicate, communicate, communicate. cal. If your global partners do not realize their role, you can sue, but a lawsuit ultimately will not help the reputation of your company, Travis says. Identify whether non-U.S. partners can use subcontractors and proactively enforce your agreements. “All business is personal. Leaders need to be in touch with their counterparts at all levels of the supply chain,” Travis says. The Leading Edge Alliance is a truly global alliance with resources available around the world. Contact your local firm to connect with Leading Edge experts elsewhere. Considering an international position? executives considering an opportunity outside the United States should ask themselves some questions to ensure the transition is a smooth one financially and socially, says debra Callicutt of Henry & Horne, a leading edge alliance firm. “The executive needs to closely evaluate the package that the company will provide to him to ensure he is not in a worse-off position for taking the assignment,” Callicutt says. if the company does not equalize for higher income tax owed to the other country, for example, or provide a cost of living allowance to compensate employee for additional out-of-pocket expenses, the executive might want to renegotiate the contract. Callicutt also recommends the executive and his or her spouse visit the country before moving, scheduling a day with a real estate agent and appointments with schools if they have children to determine the best environments for living and learning. agreements and transparency Tom Travis, an attorney and author of “Essential Guide to Going Global,” says all business executives should pay attention to trade agreements with the countries in which they may do business. He points to the great underwear war between Fruit of Loom (then No. 1) and Hanes (then No. 2). Hanes went to the Caribbean in the mid1980s where trade agreements were more favorable and became No. 1 in a short time. “The edge gained was significant and dramatic,” Travis says. When Gap launched Old Navy, the differentiation between the brands was price. After exploring export limits in Asian countries, executives found Cambodia was a new market with no quotas in place at the time so the Gap went there. Victoria’s Secret went to Sri Lanka where trade agreements were incredibly favorable, Travis says. But once a favorable country has been identified, the key to successful ongoing operations is corporate transparency in everything from environmental issues, and product integrity to security and hiring practices, Travis explains. In the United States, corporate transparency has become increasingly important so choose global partners who understand the U.S. company must comply with public regulations. “This area is incredibly important,” Travis says. Transparency in the supply chain also is criti- 24/7 world Jairo Fernandez, chief human capital officer at Neoris, a global business and IT consulting company, manages 3,500 employees in 18 offices in eight countries in the United States, Europe, Latin America, Africa and the Middle East. Recruiting employees and training employees to work in 24-hour-a-day, seven-day-aweek environment are his two biggest challenges, he says. Neoris uses both old-fashioned management hierarchies and reporting structures combined with modern alert systems and dashboards to ensure all the employees are doing their jobs no matter where they are. Annual employee engagement surveys and a global employee recognition program also are tops on the list to help address the challenge of employee retention, Fernandez says. “Staff continuity is vitally important. Exceptional organizational stability is imperaTHE LEADING EDGE 11

Table of Contents Feed for the Digital Edition of The Leading Edge - Spring 2008

The Leading Edge - Spring 2008 Contents No Place To Go But Up Lessons from Harvard Bits & Pieces Conducting Business Outside the United States Top 10 Misconceptions of Doing Business in Ireland In a Nutshell: Q&A The Leading Edge Alliance

The Leading Edge - Spring 2008

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.