Globe

Just an article on how international exposure adds to the skill set of Indian managers….

In the present scenario of rapid globalization, scarcely a day passes without headlines of another cross-country merger or acquisition. Indian companies are increasingly integrating themselves into the world economy. Thanks to the booming economy and positive growth prospects, Indian companies now have the ability to leverage their competencies to reap the maximum benefits, worldwide. The increasing number of foreign acquisitions points to India points to the increasing need for managers who have the ability to integrate the operations and culture of the acquired company to the Indian buyer.

Culture is a very fluid concept, with innumerable influences constantly altering its contours. Consequently, the passage of time has ensured multiplicity of cultures throughout the world. Subtle nuances of different cultures cannot be learnt theoretically, and misinterpreted signals could spell the doom of an alliance, no matter how financially beneficial it is. The best way to avoid such failures would be to have people who have experienced both the cultures first hand supervising the integration. It is here that the managers would find international exposure invaluable. Bridging the cultural gap by recognizing the sources and causes of resistance, these managers would be able to strengthen the merged entity by ensuring that the two cultures meld harmoniously.

The business world throws up plenty of examples where companies pay the price for making the mistake of viewing foreign cultures through the lens of their own. Eurodisney was one such example, where Disney made the mistake of assuming that Europeans are like the Americans and imposed the same rules and restrictions as in Disneyland, such as prohibition of alcoholic drinks within the park. The French felt this was arrogant of the American company, and Eurodisney was in the red till changes made the park more “European” in nature. Mistakes like these could be reduced if the people in charge are sensitized to the fact that not all cultures are like the home culture. As Indian companies seek to enter more and more international markets, a manager with a first-hand perspective on foreign cultures would certainly add more value than one with an India-centric view.

In the earlier days, companies could stay successful by observing the actions of its competitors and taking corrective action. However, with the lowering of trade barriers across boundaries, competition could spring up from any corner of the world. If the pre-globalized scenario is akin to a one-to-one sparring fight, the changed scenario resembles free-for-all guerilla warfare. It is much harder to determine where the next blow would come from. A minor change in a law, or a tariff, could lead to a cataclysmic change in the market, and the market leader could be edged out overnight by competition from where they least expect it. Toyota’s success in the American car market due to the fuel crisis in the ‘70s is an oft-quoted example. Managers with exposure to the best practices of different cultures would be able to equip the Indian companies against unforeseen circumstances.

As we progress toward a fully integrated world market, the importance of international exposure from the perspective of the Indian manager is all set to increase by leaps and bounds. The winner in the rocky climb ahead will most certainly be the one with the best equipment.