December 2001

Overseas Subsidiaries

How well do you know yours?

The everyday pressure for HQ management is very often the cause for not staying close enough to overseas subsidiaries.  Ideally, one person should be appointed to act at the interface but this rarely happens.  Language and culture, local trading conditions and fiscal requirements combine with geographical distance and fractured communications to add inefficiency, often with terminal results for the subsidiary, with all this means in resentment and bad reputation locally for the parent company!

A ruined overseas operation:

Repair costs can be prohibitive!

Experience shows that there is a general mismatch and lack of knowledge about operations in these circumstances and that guidance and input from HQ is lacking.  Sometimes that fundamental knowledge then has to be acquired too rapidly in the strained atmosphere of sharp decline.

The way to improve and maintain good knowledge of subsidiaries and their management teams is to carry out a broad in-depth business review looking at all departments; it doesn't need to be a time consuming exercise, but it is vital.  It doe call for both uninterrupted time that HQ management simply doesn't have and for linguistic ability, all too often lacking in many English and American groups.

This is where companies can profit from the use of a Global Interim Executive.

Using an interim manager as a short term add-on power for the task is not only cost efficient but a solution to bringing overseas subsidiaries on board.  The executive is not seen as the "head-office guy" (or spy) since he is not involved in corporate politics.  Presented to local management as a facilitator and an aid to better understanding with HQ, many of our more able general managers will be in a position to take over and turnaround the subsidiary if the softer approach does not effect the essential improvements.

Global Executives is in a position to make available the appropriate experience and linguistic ability very rapidly.  Ross Allen, himself based in France for all European needs, will bring his wide general management experience to resolve your challenge.

Call us to discuss your requirements.

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