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This is the first of a four-part series that will discuss the transition from the Expatriate (Expat) to Global Executive. For decades, expats were characterized in one of two ways—either they were a loyal lifetime employee who didn’t quite have the talent to run a unit in the U.S., or there simply wasn’t any spot for them in the U.S. These loyal employees were still rewarded with a posting, including the perks of club, car and international school for the kids, in locations such as Hong Kong or Paris.

Usually, these offices were already established and the expat played a caretaker role, performing mostly ceremonial duties. Another major reason for sending these people was that the CEO usually wanted their best and brightest right next to them at headquarters.

Fast forward to the 21st century, and this has completely changed.

“Expats” now prefer the term “Global Executive,” and these positions are being filled by the young and ambitious looking to springboard into the C Suite by managing offices with exponential growth in places such as China, India and Russia. Rather than golf three days a week, these Global Executives are expanding the business, securing talent, formulating strategies and developing their teams into top-notch performers. Furthermore, these roles are not just as VPs or heads of business units, but support functions such as marketing, sales, logistics, IT and R&D.

However, there are still traditional expats out there, and a “clash of ideologies” has since become evident. Since expat positions are quite attractive, one common weakness that develops is the fear of losing the position by taking risks. In the end, expats who develop this weakness become an extreme liability to the company and subvert the entire reason that they’ve been sent overseas. The safe play is to go with the flow and do just enough to get by without taking the risks that can lead to major losses. Unfortunately, many of these risks are what lead to unprecedented success. A mentality of “hold the gain” infiltrates their thinking and stagnates personnel.
Global Executives take a different approach to their position. They treasure the opportunity and see it as their ticket to validating their value in the organization.

So, what are the characteristics of a Global Executive? What does it take to find one, get them on board, and ensure there is a high rate of return on both sides?

Further than that, one must ask some deeper questions. Can you manage your business without an expat, (i.e. remote control from home base and/or hire a local person for the specific country or region)? What will be the return on the investment and why can’t you “get by” with local talent? (This issue causes companies to vacillate when trying to establish a presence in Asia.)

To help you begin the exploration into your own business’ global presence, here are some key advantages and disadvantages of sending the Expat or managing with a local.

Manage This…Expat or Local
• Expat Advantages
• Corporate culture
• Western management techniques
• Western customer requirements that need support in Asia
• Internal relationships to get the job done

• Expat Disadvantages
• Lack of cultural understanding and sensitivity
• Seen as temporary, lacking credibility
• Cost relative to return
• Personal impact, no work/life balance

• Local Advantages
• Culture and language
• Local and regional networking
• Ease of getting the job done in country
• Reduced expenses

• Local Disadvantages
• Respect with key management
• Western management techniques
• Western customer awareness
• Developing strategy and long-term objectives

In the next issue, we’ll continue to explore the world of the expat, and how to find the best global representative for your growing international business.