As the troubled General Motors was busy finalising its restructuring process and doing some heavy duty pondering over hard decisions of retaining and shedding various brands under its vast portfolio post the bankruptcy filing under Chapter 11, home-grown Tata Motors was keeping a close eye on the developments. Around the same period, Carl-Peter Forster, President of GM’s European operations, had a decision to make of his own; one, a bigger job at General Motors – perhaps even the global head – and, two, becoming Group CEO of Tata Motors. Having worked at companies like GM, BMW and McKinsey, the Tatas knew that if Forster could be convinced, he would bring a lot of valuable experience on the table. For the London-born Forster (raised in Bonn and Athens, worked across the globe), India could promise to be an enlightening experience. But Forster also knew that if he were to join the Tatas, however hard he tries, he would – by rote nomenclature – be known as an ‘Expat CEO’ (short for expatriate CEO). Along with the bouquets that accompany this garnishing, Forster would have had the benefit of being brandished with the standard ignominious accusations reserved with honour for expat CEOs. But really, why do typically Indian companies take expat CEOs in the first place? Are there any lessons?
To be fair, this is not the first case of an Indian company headhunting for an expat CEO; and it definitely won’t be the last. In fact, the Tata group itself has believed heavily in global talent for top positions; which is logical since a huge 65% of the group’s revenues come from overseas markets. Raymond Bickson, MD, Indian Hotels (of the Tata Group), contributed heavily to the company’s global expansion through innovative acquisitions and tie ups with luxury hotel chains and cruise lines. But taking in Daryl Green as MD of Tata Teleservices wasn’t as rewarding as Green quit in two years, citing personal reasons and amid rumours attributing his resignation to his inability to mingle with the culture of the Tata Group.
If one were to call a spade a spade, considering India’s vast diversified culture where each state is as good as a country in itself, appointment of a global CEO who isn’t well-aware of the cultural differences and the state of affairs is surely an extremely high risk affair. But on the other hand, the international experience they bring is undeniably invaluable and could transform a company’s vision superlatively. So what is the critical factor companies look for when recruiting expat CEOs?
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2009
To be fair, this is not the first case of an Indian company headhunting for an expat CEO; and it definitely won’t be the last. In fact, the Tata group itself has believed heavily in global talent for top positions; which is logical since a huge 65% of the group’s revenues come from overseas markets. Raymond Bickson, MD, Indian Hotels (of the Tata Group), contributed heavily to the company’s global expansion through innovative acquisitions and tie ups with luxury hotel chains and cruise lines. But taking in Daryl Green as MD of Tata Teleservices wasn’t as rewarding as Green quit in two years, citing personal reasons and amid rumours attributing his resignation to his inability to mingle with the culture of the Tata Group.
If one were to call a spade a spade, considering India’s vast diversified culture where each state is as good as a country in itself, appointment of a global CEO who isn’t well-aware of the cultural differences and the state of affairs is surely an extremely high risk affair. But on the other hand, the international experience they bring is undeniably invaluable and could transform a company’s vision superlatively. So what is the critical factor companies look for when recruiting expat CEOs?
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2009
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