It is a challenge that extends far beyond consumer electronics, as a growing number of UK brand owners take active steps to drive supply chain efficiencies or secure a slice of new markets.
The food and drinks sector, in particular, has a long history of harnessing such opportunities, through the sheer determination and entrepreneurialism of smaller players and well-engineered mergers and acquisitions at the other end of the scale.
Instinctively, most Western organizations would be looking to ‘do the right thing’, irrespective of the wider engagement strategy, when introducing best practice across an international operation. More often than not, this may include the introduction of identical, western employee conditions. Yet, the imposition of cultural values through brute policy is frequently counter-productive, resented by those it is intended to help and irrelevant to the real challenges they face.
Moving into new markets needs strong leadership and an organization capable of effective communication, employee involvement and understanding of the local environment and culture. However, too often, the lack of overseas experience leads to confusion and an imposition of style on the supplier or local subsidiary.
An effective starting point is, therefore, to put together a team with a global focus, deep cultural understanding and the ability to work in an unstructured environment. Once in place, attention should turn to the wider operational issues. This will allow the organization to create a working environment with strong employee commitment and morale, firmly focused on common global business objectives.
By applying the principles which make an organization successful in a way that involves local staff, a blend of what is good about the parent company and what is the best of the local expectations and success is achieved.
For example, introducing the UK national minimum wage in other countries would not be effective or warranted. However, the principle of ensuring a ‘living’ wage, which is equitable in the local market and reviewed on a regular basis, would start the development of a remuneration policy and reduce the prospect of damaging lurid headlines. Other areas to consider are health and safety. Not the imposition of British or European regulatory bodies’ policies and paperwork but ensuring the principle of a safe place to work, including clear guidelines in the event of an accident and the provision of training and first aid.
The biggest danger is that ‘out of sight’ becomes ‘out of mind’ and the first time a company becomes aware of a problem is when a journalist contacts them to comment on a situation of which it knew nothing about. Therefore, it is critically important to ensure that the management team reviews key performance indicators and is kept informed of the auditing process. To do any less is to put the company’s reputation at risk.
Michael Stewart, co-founder of Peridot International, the HR and non-financial risk management consultancy. michael.stewart@peridotinternational.net
The food and drinks sector, in particular, has a long history of harnessing such opportunities, through the sheer determination and entrepreneurialism of smaller players and well-engineered mergers and acquisitions at the other end of the scale.
Instinctively, most Western organizations would be looking to ‘do the right thing’, irrespective of the wider engagement strategy, when introducing best practice across an international operation. More often than not, this may include the introduction of identical, western employee conditions. Yet, the imposition of cultural values through brute policy is frequently counter-productive, resented by those it is intended to help and irrelevant to the real challenges they face.
Moving into new markets needs strong leadership and an organization capable of effective communication, employee involvement and understanding of the local environment and culture. However, too often, the lack of overseas experience leads to confusion and an imposition of style on the supplier or local subsidiary.
An effective starting point is, therefore, to put together a team with a global focus, deep cultural understanding and the ability to work in an unstructured environment. Once in place, attention should turn to the wider operational issues. This will allow the organization to create a working environment with strong employee commitment and morale, firmly focused on common global business objectives.
By applying the principles which make an organization successful in a way that involves local staff, a blend of what is good about the parent company and what is the best of the local expectations and success is achieved.
For example, introducing the UK national minimum wage in other countries would not be effective or warranted. However, the principle of ensuring a ‘living’ wage, which is equitable in the local market and reviewed on a regular basis, would start the development of a remuneration policy and reduce the prospect of damaging lurid headlines. Other areas to consider are health and safety. Not the imposition of British or European regulatory bodies’ policies and paperwork but ensuring the principle of a safe place to work, including clear guidelines in the event of an accident and the provision of training and first aid.
The biggest danger is that ‘out of sight’ becomes ‘out of mind’ and the first time a company becomes aware of a problem is when a journalist contacts them to comment on a situation of which it knew nothing about. Therefore, it is critically important to ensure that the management team reviews key performance indicators and is kept informed of the auditing process. To do any less is to put the company’s reputation at risk.
Michael Stewart, co-founder of Peridot International, the HR and non-financial risk management consultancy. michael.stewart@peridotinternational.net
