In today’s hyperconnected world, global trade is the norm and international mobility is common. Even local markets are being rapidly transformed by migrating populations and growing tourist trade. In the digital marketplace, online shoppers of different nationalities and persuasions transact seamlessly with foreign businesses through networks of global third parties.
While recent upheavals in global security and trade threaten to disrupt this status quo, emerging trade deals and ongoing peace negotiations bring hope of a return to stability. Still, market uncertainty and a more complex geopolitical landscape add to the strategic challenges multinational organizations already face, both in engaging multicultural consumers and running their regional businesses successfully.
Leaders with international experience are more important than ever, typically outperforming their single-market peers when it comes to:
● Responding to global market trends and displaying resilience during upheavals
● Unbiased and better-informed strategic decision making and problem solving
● Leading diverse teams and collaborative efforts at home and across the planet
● Building meaningful global networks and strategic partnerships
● Developing innovative, mindful, and inclusive strategic solutions
Priscilla Batistão, Partner at Signium Brazil, sums up what this means for next-generation business leaders. “Future leaders will be expected to deliver winning strategies and perform effectively across highly disparate, multicultural markets, even in uncertain global conditions,” she says. “So, multinational corporations are placing far greater value on leaders with international experience.”
In fact, not having international experience on their resume could one day raise questions about a leader’s professional viability, and personal career advancement, in multinational settings. It follows that next-gen leaders should view gaining international experience as a key milestone in their career plan.
When is the right time to make a global move?
In terms of remuneration, sooner is better. A 2021 study by researchers from the Department of International Management and Strategic Management at ESCP Business School in Berlin and published in International Management Review found emperical evidence that CEOs who served abroad early in their career were better compensated than those who did so later.
“Working in global markets not only promises a desirable competitive advantage for organizations but also a material career boost to leaders who take the plunge as soon as possible,” says Batistão.
Even so, the timing of a next-gen leader’s first venture into a foreign executive assignment is subject to a range of critical variables – personal and professional. Before striking out, they need to:
● Assess career stage and leadership readiness. While organizations around the world are looking for international experience, they also need leaders who are competent to operate in a given role. If a leader is not at a stage in their career where they can accept the challenge or there are gaps in their leadership skills, they need to address these first. Their main concern should be what can they do about it now.
● Align the move with long-term leadership goals. International experience for its own sake makes little sense if it doesn’t fit with overall career goals. When an opportunity arises, leaders should ask themselves how it will contribute to their professional vision. If it detracts from their goals, it would be wise to actively seek out better alternatives.
● Consider personal factors such as family, lifestyle, and adaptability. A leader needs to assess if they are resilient enough to weather the simultaneous culture shock and work pressure associated with moving to a strange country. If so, will their partner, spouse, or children adapt as well as they do? They need to consider the emotional readiness and wellbeing of their loved ones too.
● Evaluate organizational support and sponsorship opportunities. A foreign employer can sponsor a leader as a long-term employee, or they can join a local multinational known to offer international assignments or regular executive rotation. Either way, they must be sure to determine beforehand how much support they will be given when relocating abroad and during their stay.
“In a corporate environment, leaders may be deployed to a foreign region with little say in the matter. But, whenever possible, they should think strategically about the timing of their global move and how profoundly it may or may not benefit their personal and career goals,” advises Batistão.
Four key ways to prepare for a successful international transition
Careful preparation and planning will help an executive maximize their gains and ensure they hit the ground running upon arrival in their new environment. They should focus specifically on the following:
Building cultural intelligence and understanding local business practices. Leaders must give themselves sufficient time to learn about the culture they will be exposed to. Topics like local etiquette, typical social interactions, or even social taboos can be learned from the web through articles, references, videos, images, and travel sites. They should also prepare themselves professionally by reading up on subjects like regional company legislation, business etiquette and practices, or even the organization’s code of conduct and policy manual. The more they learn beforehand, the easier it will be to fit in.
Developing language skills and effective cross-cultural communication. A US citizen working in the UK may face little in the way of language constraints or cultural disruption. However, in an Asian country, they would need to develop at least a rudimentary grasp of the official language before arrival. If they are not one to pick up languages quickly, a language course is advised. Meeting bilingual future work colleagues and expatriates online can help immensely, not just with mastering the language but also the dos and don’ts of getting their message across in that community. So, it is important to reach out early.
Planning logistics including visas, finances, and relocation support. If an executive already works for a multinational, it will generally do much of the heavy lifting for them. Most partner with global mobility firms or management relocation companies (MRCs) to assist executives with financial planning, obtaining visas for themselves and their families, and other administrative concerns. MRCs typically have agents in-country to help them find housing, open bank accounts, apply for schooling, and address other lifestyle needs before they ever land. Once they do, the MRC will help them become familiar with their surroundings and the society in which they find themselves, sometimes offering guided tours, shopping outings, and other discovery activities. However, if joining a foreign employer, they should always check with them that they are willing to provide similar support. If not, it is best to engage the services of a reputable third party for assistance.
Establishing a support network in the new location before moving. Leaders can smooth their transition by establishing a network of contacts where they will be living, especially if those people are in business, speak the same language, and have cross-cultural exposure themselves. “Connecting with expatriates and expatriate groups will prove to be a gold mine of information and support before and after an executive makes their move,” says Batistão. However, she warns, they must beware of scammers online and in real life who will use social engineering to exploit them. They should validate everyone they meet through independent third parties or, better still, source new contacts through existing members of their network they know and trust. Online platforms like InterNations host expats from hundreds of countries.
Navigating leadership challenges abroad
After starting work in a new region, executives inevitably have to deal with the practicalities of leading in a business environment where things are done either somewhat or a whole lot differently.
● Adapting leadership style to fit diverse cultural and corporate environments. Geert Hofstede proposed several cultural constructs that determine the most effective leadership approach. For example, leaders in an authoritarian culture might exercise autocratic authority within an unquestioned societal hierarchy, whereas a power sharing culture respects leaders who are participative, encouraging and communicate openly. “The point is that executives need to determine leadership expectations where they are and adapt their style accordingly if they want their team and fellow leaders to get behind them,” says Batistão.
● Managing relationships with both local teams and the home office. If on a multinational assignment, being in another country doesn’t mean executives are no longer part of their home office team. They may be required to report back regularly to the head office, either virtually or by physically flying back for a meeting. Alternatively, they might act as a liaison for their foreign team during a meeting. They need to be able to switch leadership and communications styles fluidly to accommodate both teams, as well as facilitate cross-cultural understanding, provide context, resolve conflicts, and build trust. They may also need to clearly articulate the cultural reasoning behind management decisions and practices in written reports and messages between regions.
● Cultivating resilience, agility, and emotional intelligence in unfamiliar settings. Mental resilience is often the product of physical wellbeing. Maintaining a disciplined exercise routine and sensible diet will greatly enhance an executive’s ability to handle day-to-day challenges and setbacks gracefully, along with regular rest, relaxation, and meditation. Discarding rigid thinking and embracing input from their team will help them develop the agility to change tactics rapidly in a market that itself may face abrupt changes and disruptions. Even their emotional intelligence – the understanding of what gives rise to distinct emotions in themselves and others, and how to manage these effectively – will need to be enhanced. They must learn how colleagues in that culture process and respond to information and circumstances, and use that insight to build respectful and reciprocal interactions with them.
3 key ways to leverage international experience for career advancement
International experience is not the end goal; it is the catalyst to something greater. Working in France for two years does little to help an executive lead in either Germany or Spain. Although they are direct neighbors, their cultures, languages, and business outlook couldn’t be more different. So, what does the executive really gain from their learnings, and how does this make them a better leader?
Insights and innovative thinking from global exposure. Working abroad, experiencing another culture, and operating as part of a diverse team allows executives to break away from restrictive and biased thinking that limits their potential as a global leader. This expanded mindset can help them devise powerful alternative strategies and innovative solutions to business problems in their home country and across borders. The emotional and cultural intelligence they have acquired can be generalized across diverse, multicultural teams to win valuable contributions to and support for their initiatives.
Expanding professional networks on an international scale. The confidence executives acquire from international exposure can present endless possibilities for meeting people they may never have thought to approach before. Moreover, if all went well, they should have already accumulated precious contacts abroad beyond the members of their team. The more diverse their network, the greater the opportunity for exciting strategic partnerships, closer professional relationships, meaningful collaborations and, quite possibly, untapped business opportunities. They need to continue building, expanding, and mining their network across countries, using the global leadership skills they now possess.
Positioning for future global or C-suite leadership roles. It’s a testament to their mettle as leaders that these executives are willing to dive in and acquire international experience at all. They still need to grow and mature their skills and expertise in the leadership field they have chosen, for example, financial management. However, early international experience sets a precedent in the minds of their peers about how far they really want to take their career and how serious they are about getting there. Take, for example, Carol Banducci, former Vice President and Chief Financial Officer of IAMGOLD Corporation, now retired. She spent over two decades travelling the world for several multinational employers, visiting foreign branches regularly to stay abreast of the global financial status and strategic needs of each group. It is a level of dedication that saw her voted one of Canada’s most powerful women in 2015 by Women’s Executive Network. It is also an attitude next-gen leaders should foster to catch the attention of organizations that want someone with an edge to lead them.
“It’s not just what they have learned, but who they have become that makes international experience so worthwhile and invaluable,” explains Batistão.
Shining as a next-gen leader
Unlike their predecessors, next-generation leaders will operate in a new reality where even local is global, and cross-cultural management takes place every day. They can’t leave their success to chance, and gaining international experience will instill in them the personal qualities and professional brilliance they need to stay ahead of the curve. It will take careful strategic planning, preparation, and execution to make sure each step in their quest bears optimal results.
Batistão notes that mentoring and coaching are the secret to many a global leader’s professional success. “They don’t have to do it all by themselves, and it doesn’t have to be like diving into an icy lake,” she says. “Mentors and coaches who have spent decades accumulating leadership experience abroad can provide them with a head start.”
Better long-term compensation, faster career advancement, and the opportunity to demonstrate uncommon value are all strong motivators for next-gen leaders to earn their stripes in foreign lands.
Conversely, not gaining international experience could put them behind professional and business competitors who take the initiative. In the words of the late basketball coach, Ed Macauley: “When you are not practicing, remember, someone somewhere is, and when you meet them they are going to win.”
Batistão concurs: “A next generation leader is a person who acts now, so when it comes to promoting them or someone else to a global leadership position, they will be the one who wins.”
www.signium.com
