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Growing pains in fast expanding companies 26–29 October 2014

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Growing pains in fast emerging companies

Global expansion yesterday


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

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


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


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


1. Improve leader pipeline

Problem Solution Data Success

Unable to find

candidates

Integrated approach

Multiple sources

Combined

“push and pull”

Case example



Talent risk management

Top team effectiveness The “Top Team”

Tomorrow’s leaders

Emerging talent

Growth acceleration

Identification and

development

Different focus at different levels



Execution

Strategy

Internal External

Strategy

Growth Return

Execution

Shipbuilder Explorer

Navigator Captain

Cartographer

Different profiles for different challenges


2. Balance global and local

Global consistency

(control)

Local adaptability (efficiency)

Controlled Reconciled

Independent Undirected


3. Manage immigration and taxes

Regulatory and compliance complexity

Economic policy

Socio-political environment

Challenges in the Developed World


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


3. Manage immigration and taxes

Less developed legislative system

Disseminated administration

Insufficient judicial

precedence

Risk of unknown Challenges in the developing world


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)


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


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


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


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


Global expansion tomorrow?

Globalization 3.0 ?


Discussion

► Any questions or observations?


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