MANAGEMENT
M a n a g e m e n t must have complete trust i n its international field men. Honesty, loyaltyv and good intentions must be beyond question W. J. Wafface
> Λ Management should let the cv^rseos manager •·;. interpret local conditions and decide whether
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bTodayîs^^YeeseeèX uiànooer«jntJst: barticiiiatè^! ctnv:locelA«cttvifies.?:lfe;ifn^ in loccl activities, l i e must be M r . Amern can Γ: Com pany ; m - ; the$*eyes\ of ,n fhe^couimy&$ rfarvey Williams
Foreign Operations Pose Problems JL OUGH m a n a g e m e n t decisions face a c o m p a n y planning to start operations in a foreign country. Among t h e most important: choosing the right man to get things started. Then come t h e problems of delegating authority and responsibility to him, and coming u p with some sort of a yardstick to meas u r e his performance. American Man agement Association, meeting in N e w York, heard a special panel of execu tives experienced ir. foreign operations give its views on these vital points— a n d on a few sore spots in international operations. Confidence tops the list, t h e panel agreed. Domestic management must have complete trust in t h e prospective international field man. His honesty, loyalty7, and good intentions must b e unquestioned, W . J. Wallace, admin istration manager of Worthington Corp.'s international operations, told conference members. If he falls down on any of these qualifications, then he's not t h e right man for the job. And don't insist on a man w h o knows every facet of the business— they're just too h a r d to come by, adds Wallace. In m a n y cases, t h e man 36
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singled out is t h e fair haired boy from sales. Chances are good ttxat he won't b e as sharp in other areas, such as ac counting, production, or inventory con trol, Wallace points out, But don't worry about it. Thrown into t h e new job, alone in a strange country with no experts to go to as in the home office, he'll develop more self-confidence and catch on quickly—if you've se lected the right m a n . The overseas manager must b e given authority, and equally important, he must be encouraged to use it, Wallace stresses. Backing Wallace o n this point. Anthony Diinino, president of Quaker Oats Pan-American, told the conference, "Domestic m a n a g e m e n t should b e as liberal as possible in per mitting the overseas nuioager to in terpret local conditions and decide whether or not domestic company policies should be used i n t h e over seas environment." Overseas management is broad in scope, Dimino points out- T h e man ager wears all the hats, He handles finance, accounting, sales^ advertising, production, personnel, public relations, and the like. Often, this causes him
to develop a "proprietorship a t t i t u d e . " T h a t is, this s a m e m a n , in a less d e m a n d i n g assignment, might b e a m o r e d e t a c h e d , objective person, Dimino ex plains. As "proprietor," however, h e may at times b e tense in defense of his authority a n d require more u n d e r standing on the part of m a n a g e m e n t . • Communications Vital. Good communications are another vital cog in t h e precision machinery of a wellrun foreign operation. I n many cases, **yn #>/\i>frtinlt -»r>*· 1 o f i r communications«; ai ing in quantity, says Wallace, b u t t h e quality leaves a lot t o b e desired. D o n ' t drown t h e m a n a b r o a d in d o mestic sales a n d earnings figures of the p a r e n t c o m p a n y , h e warns m a n agement. Rather, compare his p e r formance with business conditions in the country t h a t he's in, or with com petitors' performances in that country, he suggests. B u t home management's opinions and suggestions, if offered in t h e p r o p e r vein, are invaluable aids to the inter national field m a n , Wallace points out. Tell him h o w t h e situation in his foreign station looks from h o m e and elsewhere, h e advises. M a y b e his
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MANAGEMENT
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thinkiBg in a particular case is clouded by local prejudices. W i t h good guidance, he can evaluate the situation more effectively. • Bring Him Back* Close personal contact between headquarters a n d t h e overseas m a n is a must, say t h e panelists. T h e foreign-based executive often feels that t h e understanding a n d support he receives from t h e h o m e office fall short of his needs, says Dimino. But often t h e trouble stems from t h e type of data that h e supplies to t h e home office. T h e answer: Bring h i m home as often as possible. L e i him see how his requests are processed—the channels they must pass through, t h e data needed, a n d t h e problems facing domestic management. H e l l d o a better job on his future requests. Wallace a n d Dimino have different opinions on t h e subject of home office brass traveling abroad. Dimino thinks domestic management should visit overseas operations as often as possible. "Even for t h e individuals who maintain direct contact, refresher courses in t h e form of revisits are a must so that they may not lose the flavor of the overseas conditions/* h e says. But Wallace suggests that VIP's keep overseas travel to a minimum. "Make your visits count," h e tells h o m e management. T h e old American a p proach—that of the big boss showing u p in all his finery, brushing through the plant with a cheery wave, a n d then disappearing—is wearing very thin, h e points out. Send t h e technical man instead, Wallace advises. H e ' s the one w h o mingles with t h e work- > man, rolls u p his sleeves a n d pitches in. Technology hurdles language barriers. I n the end, it's t h e technical man w h o really makes the sale, Wallace believes. • A N e w Breed. Today's overseas manager is a very different creature from the one of t h e period between the t w o World Wars, says p a n e l chairman Harvey Williams, president of Philco International. Reason—broader local requirements. M u c h more complex conditions exist today. T h e overseas m a n of t h e past w a s often just a manufacturer's representative. Today, h e must manufacture, sell, hire, a n d so forth, Williams points out. H e must try to adopt local customs, learn t h e language, a n d enter into community and social activities. In short, h e must be Mr. American Company in the eyes of t h e country. g
