Exapts or local managers in emerging countries? see the third option

Beyond expats: Better managers for emerging markets

By Giorgia Madonno Marco Polo Consulting

The CEO of Manpower, in an interview published by Mckinsey Quaterly, proposes "revers expatriation" approach - rotate local managers through some of the company’s more mature operations instead of sending expat to emerging markets.

For sure the localization of leaders is a trend and the proposed approach can help to develop leadership skills and build bridges across the company locations.

However, based on my consultancy experience on this topic, this has to be done wisely and with a medium-term perspective:

1) recognizing the gaps that local leaders still have (for some key and complex positions balancing with foreigners' expertise and managerial approach is still needed)
2) having very well structured programs for "reverse expatriation", involving both the host and the sending organization in preparing it
3) ensure a strong "buy in" of the host organization. Too often local managers sent to mature market operations are "abandoned" and no-one take charge of their learning path
4) consider to assign a organizational position to the "revers exapt" while abroad in order to challange him/her with responsibilities that can faster the learning pace
5) providing cross cultural coaching and support before, during and after the expereince, in order to capitalize it

And for foreign expats, which is the professional perspective? The number of opportunities for foreigners in emerging markets is decreasing and we assist more and more to a localization of contracts for foreigners (Local contract + benefits).

In the medium term the point is to see if signals for a tird approach, that usually follow the localization trend, will emerge: globalization for diversity improvement.
The sequence is often the following:
1) Expatriation from Corporate for internalization of the company
2) Localization for the adaptation to the market
3) Globalization for diversity improvement and global competition

When companies succed to localize the management they start to feel a need of diversification of leaders in order to better compete in a globalized market and they may start to rotate people across markets to build diverse management teams. So in the future it may happen to have a bright Chinese leader sent to Europe, a Brasilian talent to China, an European to US and so on.
Let's wait to see.

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