MIT Sloan Management Review

Human Resource Management and Industrial Relations, International Business

The Need for a Corporate Global Mind-Set

By Thomas M. Begley and David P. Boyd

January 15, 2003

It’s not enough for a few executives at a multinational to have a global mind-set. All employees should excel at balancing global consistency with local responsiveness. That’s why many organizations are testing ways to embed a corporate global mind-set in companywide policies. Research shows that managers universally recognize the imperative, but only a few are close to implementing it.

When a certain U.S. multinational corporation sought to adopt a global policy on employee mobility, it convened a yearlong symposium with representatives from units worldwide. Through a format that encouraged brainstorming and in-depth discussion, a consensus gradually emerged that enabled executives to reduce mobility classifications from eight to two. One category, the expatriate assignment package, encompassed managers who agreed to a company-requested posting of two or more years; it included 23 core elements that were standard. The other category, the international assignment package, covered employees who were assigned to a position for less than two years or requested an international posting; that had 13 core elements and left the other 10 adjustable to local situations. Both the policies themselves and the process used to develop them were well received abroad.

In another U.S. multinational, however, a task force of U.S. employees from different levels and functions drafted a major revision of work-force policies. The draft was discussed in several managerial forums, and a detailed questionnaire solicited the opinions of all U.S. personnel. Corporate executives considered the final product, which reduced the number of policies from 120 to 10, a notable success. Unfortunately, the process included little input from overseas. Instead, headquarters presented the results to all geographic units as a fait accompli. A company executive later commented, “International participation was an afterthought.” The policies and... To read the complete article, login or sign-up using the form below.

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