Policies perfect for a division in one part of the world will not work in all locations, regardless of translation and leadership. HR is hardest hit when international employees are caught in the middle of what was and what is policy. How companies can go about developing progressive policies which lead the people as well as the business forward.

One of the ancient Greek’s greatest innovations was the establishment of the polis, or “city-state”, characteristically small organisations which lent themselves easily to experimentation with regards to political structure. Much of what has been documented about ‘Polis’ and how ideals, values and ethics were ‘sold’ to the communities can be applied to the establishment of a successful corporation today.

 Multinational firms, charged with the task of writing, updating, implementing and managing policies that embody corporate vision, ideals, values, ethics and identity, often find themselves struggling to conquer policy control issues. HR is hardest hit when international employees are caught in the middle of what was and what is policy.

Those multinational firms which develop our global markets have a big impact on the way we think, live and work. And it is the HR department of these corporations which cultivate the foundations of corporate law and order through the research, development and management of policies that guide, reward and punish its corporate citizens. HR must, by necessity, become ‘figuratively multi-lingual’ and culturally aware in its diplomacy.

 Ken Treschitta, Domestic and International Sales for Continuum International Inc., Connecticut (US), says diplomacy and ‘savoir faire’ are prerequisites to leadership in advancing any agenda held by management overseeing international business and international employees. Treschitta believes fine-tuning our sense of ‘response-ability’ increases our receptiveness to think beyond limitations and enhances our professional and personal life. “You cannot separate one from the other in terms of what makes an individual successful,” he says.

The same prerequisites apply to successful negotiations guided by policy Treschitta continues, “The moment a company expands territory by crossing borders or oceans, HR professionals become avant-garde ‘special agents’ on highly sensitive missions. Their mission: Write, implement and execute living documents… a/k/a ‘Policies’ that lead creative talent, business, and people forward…hence living through one’s response-ability.”

Management and policies

Pascale Michaud, Ph. D., former McKinsey & Company consultant, Montreal (CAN), is the author of business book ‘La Course’ (The Race) published in France and Switzerland, documenting a study based on structured interviews conducted in 2002 with 100 high potential senior managers and executives of large manufacturing and service companies in North America and Europe. Data analysis using statistical and qualitative methods led to the identification of people through the following categories:

The career sprinters
The intellectual sprinters
The challenge sprinters
The marathon runners
The pilgrims

When I asked Michaud which company she felt upholds the most progressive policies and management, without hesitation Michaud replied, “Johnson & Johnson”.

According to Michaud, “Johnson & Johnson had the most positive and progressive environment. HR issues were always at the heart of their answers and were reflective of a cultural aspect of the company, not only individual perspectives.”

Johnson & Johnson believes successful managers are those who: Hire people well; match people to things that they are good at; create an environment to motivate people to perform; create an environment where people are self-motivated to create mastery; spend enough time working with people, as opposed to focusing mainly on defining projects/working on projects; set aspirations; motivate people to reach stretch goals.

When Johnson & Johnson were asked what key methods they used to help managers improve their performance, they provided a historical perspective of their efforts in HR management with an action list which included coaching, mentoring, programmes, assessments, and leadership courses. The company was deliberately working on talent management and talent retention as an overall goal; wanting people to participate in debates and creativity processes, and to develop more leadership capabilities.

Environments for policy development

Michaud identified sector-related factors as the common links between firms with progressive policies and management styles, which included internal as well as external environment-related factors.

Companies in the upper part of the value chain such as aluminium, steel, and pulp & paper companies who focus on raw materials production and semi-final products operations, have different cultures and perspectives on talent mobility than those of companies in consumer products and services such as pharmaceutical companies like Bristol Myers Squibb, IT companies like Microsoft, and consumer goods companies like Procter & Gamble. Michaud believes it has do to in part with their engineering background; that plants across the world produce the same commoditized goods with more or less the same production processes, but in very different policy environments.

It also has to do with the nature of the business: commoditized goods with prices depending on world markets, lower rates of product innovation, very high fixed costs structure, competing on costs. In these companies (aluminium, steel, pulp & paper companies) she hasn’t seen major creative processes for talent management. It may be due to the fact that these companies have a long history - sometimes, they are over 50 years old - and evolve in highly institutionalized environments with strong regulations.

In companies with higher rates of innovation - such as in those companies where R&D spending is high – typical of companies closer to retail markets - Michaud noticed more ‘care’ given to assignments/ re-assignments. It may be because these companies build their competitive advantage on creativity - such as speed of new product development, and degree of innovation. Therefore, they need to provide their people with the best environment for creativity and innovation – and this is reflected by the policies they have developed.

Internal environment-related factors are also important. The spirit and style of the CEO can significantly affect the culture and the care given to people. In addition, when the company’s vision isn’t clear, and when the company doesn’t have enough ‘stretch goals’ to reach, people are not motivated to give their best.

External environment-related factors are also important. The Enron scandal, for example, has created a tighter corporate governance environment for multinationals. It affects the way companies build policies. Unfortunately, what often happens is that they multiply policies and rules to create more bureaucracy.

Jessica M. Gilbert, President, Inclusivity International, Rockville, Maryland (US), makes a point; “Firstly, not all firms that think of themselves as multinational are truly multinational”. Many firms doing business or having offices in multiple countries maintain their single country culture. In the diversity arena, those firms which successfully maintain progressive policies, programmes and management styles have several things in common:

• There is strong and clear support from within the highest levels of the organization.
• Successful companies make a compelling, company-specific business case.
• There are communication mechanisms that allow for a two-way flow of information regarding policies, programmes and the needs of the employees and business.

Kay Kutt, VP for Paragon Decision Resources, Inc., Rancho Santa Margarita, CA (US), echoes the importance of writing, implementing and managing through the guidance of forward-thinking ‘living documents’. Kutt was awe-struck as she listened to four HR relocation practitioners passionate in their discussion of the importance of creating ‘living’ mentorship programmes serious in developing mentors assigned to international employees for the life of the international employee’s tenure at a big four accounting firm - extraordinary vision is exercised to not foster skies filled with what she calls the ‘stealth expat’, escaping radar detection (policy) structures meant to protect them – not destroy them.

The balancing act

According to Kutt, “One of the greatest success factors in developing international policies, and policies that embody a multinational’s vision, values, and mission advancing business country-by-country is balance. Very often policies are written from context not in-line with corporate intent. More attention to the challenge of business balanced to needs and policy made to act as a ‘living document’ is demanded of multinational firms.”

We tend to hide behind the word ‘policy’, much like a child would think himself safe to run and hide behind the police. When we disagree with a policy we use friendly terms such as ‘guide’ or ‘matrix’. When we disapprove of behaviour in an employee, or poor vendor services, we pull the term ‘policy’ back into our lingo to enforce a firm stance. ‘Policy’ is policy - no matter how one looks at the rule of a corporate law - a rule that gives its people direction, and symbolizes purpose.

Michaud believes that creative thinking lies behind a multinational firm's ability to write successful policies that propel people and business forwards. She outlines the following essential ingredients for successful policy making:

• Keep policies in line with the company’s vision and stretch goals (such as ensuring coherence between succession planning activities and company’s strategic goals; aligning HR policies with overall policies).
• Keep policies common to all divisions and departments (same global ‘rules of the game’ applying everywhere) but adapting smartly to local culture and environment
• Policies need to consider people’s overall goals and trade-offs (such as helping with significant others’ career when one is re-assigned, considering people’s profound motivations. Multinationals need to understand that talented managers pursue different goals from one another and take this into account when drafting their career paths.

When creating expatriate policies, too little is done to ensure policy development and the managing of expatriate matters across the globe. It takes an appreciation for the uniqueness of work-life situations imposed on all employees.

Mike Emmott of the Chartered Institute of Personnel and Development (CIPD) (UK) points out, “Stress, for example, is still not a hot issue for many firms. Dealing with it is not part of the standard line manager’s kit. Translating policies into practice is not easy. The results are disappointing but sadly to be expected.”

Progressive leadership challenges assertive and creative thinkers, empowering them to go beyond boundaries that divide their greatest assets (their employees) and company ideals to ensure policies once made of stone become living policies for all to thrive from and grow.

November 2003

RoseMarie LaCoursiere is the president of Ask RoseMarie a Corporate Concierge Company (www.askrosemarie.com).