DiligenceChina

What’s old is what’s new in China management for MNCs. China has moved from enigmatic splotch on the map between Europe and Japan to Center of the Universe so quickly that C-Level bosses and HQ staffers have barely had time to update their misconceptions about operating here. Decision-makers and policy-enforcers in NY and Frankfurt have learned everything they know about China from Time and the IHT. As the media chased fads and built up their own images of China’s economy – so evolved the notion of China management in the minds of the firm’s home office.

Managing expectations from HQ – new execs big challenge in China.

New top managers in China are starting to understand that HQ is a significant bottleneck. This is especially true of the new type of “global” manager who may be transferring in from Mumbai or South Africa. HQ sends this kind of top manager to the expensive cultural orientation training sessions – but those same home-office honchos with the first and last say on China policy haven’t gone themselves. Ex-pat managers are expected to “China-up” their management techniques and get results comparable to back home – using SOP (standard operating procedures) and strategies that don’t exactly fit in with China.

What can a senior China Ex-pat boss do to help HQ get a clue?
Two options:

1) Control expectations in the short term.
2) Control expectations in the long term.

Short Term tactics for managing HQ
Jawbone, write a report, send Chinese staff home to train, be direct and reactive. This number is unrealistic, we need to reassess that. Works best if you propose specific solutions – even to the really vague issues. (The entire HR situation, for example.) Get estimates on things like training, replacement parts, software, new equipment, etc. that can be priced. Then offer to consult directly with the company’s global supplier of that service. They make GREAT allies in getting HQ to spend money.

Long Term tactics for managing HQ
Get them over here and pitch a revised business plan. Not just over here for a weekend junket – and your business plan has to have weight. Remember – the idea here is to move the goal-post, not just call the play. If your company has annual sales, HR or management conferences, then this is a perfect venue. Key: Don’t try to sell them on your China solution at the first meet. Try to sell them on China as a place they should visit often. Everyone always loves their first China trip but the more time they spend in China, the more sympathetic they will be to your issues and ideas.