Multicultural leadership team, an Ingredient for success
In recent time, new word “MNC” or “Multinational Company” has been coined.
Companies are spreading their wings outside their home countries, and increasing operations in other parts of world, they are hiring resources at the elementary level from different countries ,not because of talent but since it is cheaper , or the law of the land forces them to create employment in countries where are doing business, but are they really moving towards being a multicultural ?, I doubt .
I still see lack of willingness from so called MNC’s , mostly European,to allow the multi-cultural and multinational leadership team at the top level, or so called the leadership level (CXO’s)
Merely opening an operation or a back office center outside of their home countries does not make a company become MNC.
I believe for companies to succeed, diversity at the top leadership level is an important ingredient. Diversity in leadership team brings in different flavor, thought leadership, new process, ideas & strategy & Vision that could help companies grow outside of their home countries. Companies want to keep the doors closed for international talents, and this remind of colonial era.
European and Asian companies still look mostly to their own to fill the corner office, even when they depend on global business and employ people in scores of countries. "I can't identify any well-known American CEO at a European or Asian company,"
In contrast If you see, American companies, (Coke,Pepsi,Google,Kellog,Xerox,Microsoft,blackberry etc.) they have opened the door for leadership position to people from other countries preferring talent, Which I believe is something lacking in companies from Europe & Asia and that may be one of the reason we see stories like, Nokia.
That is why US has becoming a melting pot for talents from all across the world and it leads the world, I am not favoring US companies, but I appreciate the way they use the talents from across to globe to make a successful business
Read: https://www.wsj.com/articles/SB108543349255419931
(Courtesy:wall street journal )
There could be questions in mind , can an external CXO perform better, the answer is YES.
Read this article from Sloan bussiness school (MIT)
https://sloanreview.mit.edu/article/when-is-an-outsider-ceo-a-good-choice/
(Courtesy: Sloan Business School , MIT)
Companies believe that they can succeed in other countries with their colonial mindset since they have succeeded in their countries as well, which I fore see to be an eye wash for themselves.
I believe, in long term, preference for local vs global will cost companies a lot.
Prashant KUMAR