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sending an expat was best for your internationally-growing company, in comparison to using locals from that region. It’s a complicated decision as to who will best represent you on a global field, and one that should not be taken lightly.

If the decision has been made to send a key manager to another country, planting someone from the U.S. “in-country” is expensive, especially if a family is being considered. On average, it costs a company approximately $600,000 to $1,000,000 per year for a family of four, depending on the package. Twenty percent of all expats return prematurely and more than 30 percent of those that stay until the end are ineffective. This is due to the fact that the manager was chosen for the assignment based on their technical skills rather than doing a proper assessment of their overall capabilities. The key to any successful expat is 70 percent attitude and 30 percent job skills.

In addition, there are three characteristic quality levels that build on each other that must be considered in vetting the right manager for the expat assignment.

The Right Stuff

• Level I – Professional Qualities

• Technical and corporate experience
• Experienced in managing others (three or more)
• Well-respected within key departments
• Clear communicators, oral and written

• Level II – Personal Global Qualities

• Multicultural mindset; affinity for working with foreigners
• Commitment to learning
• Good work/life balance
• Goes the extra mile in areas outside of the job function

• Level III – Personal Asia-Specific Qualities

• Strength and humanity
• Ability to network and build relationships
• Speed and patience
• Can serve as a well-balanced spokesperson for the company

Over the years we have seen many companies replace expats with locals. The primary reason for this move is usually cost cutting and the assumption that local management could handle the complex multi-tasking required to be successful.

Yet, in many cases, the business declined in revenue, and margin and fundamental operational issues started to wane. As a result, these companies usually decided to send the expat back to “fix the problem.” While this scenario seemed to be a trend, it is important to keep in mind there are very intelligent and capable managers in all parts of Asia.

The “Holy Grail” is finding a person that has Western company experience combined with the understanding and appreciation of Asian business culture.

In part three, we will further discuss the details of this transition from expat to global executive, and the successes and failures of each.