to outsource its entire IT infrastructure, but expected the winning
vendor to enter into a long-term partnership, invest hundreds of millions of dollars,
share risks, and be prepared to earn a fraction of a cent for a minute of talk time!
In those situations, a country manager has to assemble a cross-functional, cross-business
unit team, imaginatively structure a proposal, identify risks, and sell the idea to
diverse stakeholders in the company, while racing against aggressive rivals. The stakes
are high; such a deal sets a precedent, and the winner takes many of the subsequent
contracts by leveraging its experience. IBM India, for instance, has won eight out
of ten outsourcing contracts in India on the back of its Airtel deal.
Meanwhile, the country manager in India has to deal with large gaps in people’s capabilities.
His or her counterpart in the United Kingdom would likely have a seasoned team, with
depth in marketing and supply chain management as well as leaders who can manage a
$100 million business without too much hand-holding. This is not be the case in India,
where, because of the lack of seasoned talent, the country manager has to be much
more versatile and hands-on, and understand nearly every function. He or she also
has to spend a disproportionate amount of time and effort on building a strong leadership
team and a capable organization. Successful country managers prioritize this above
all else, especially in the first three years of their tenure. As Tedjarati puts it,
“I pulled one lever more than anything else, and that was the people lever. Above
all, I was the company’s Chief People Officer.”
The final element in the profile of a country manager is trust. The physical and cultural
distance of the headquarters from India and the high levels of corruption in the country,
coupled with the need to operate differently in India, put a premium on trust. Trust
has several dimensions. At the most basic, given the risk of corruption and fraud
in India, the country manager must be a person of impeccable honesty and integrity.
A second aspect is good judgment; many situations that arise require an immediate
response based on sound common sense. These decisions can’t be made in Singapore or
Paris. The company has to be able to count on the country head to do the right thing
in every circumstance. Third, as Tim Solso of Cummins says, trust means knowing that
the country manager is implementing the global strategy and isn’t pursuing a different
agenda. Finally, there must be confidence in the country manager’s ability to execute
well. There are many advantages to having a senior leader with a track record in the
company and a network, who wields respect, influence, and authority at headquarters.
For instance, Nestlé’s Helio Waszyk ran an R&D center in Vevey before moving to India.
His ability to walk into the CEO’s office and argue the need to set up an R&D center
in India gives him an edge over even exceptional outsiders. Similarly, in selecting
senior GE veteran John Flannery to head the business in India, Jeff Immelt explained
that “it is absolutely necessary that the leader of our new organization [in India]
has an outstanding track record in the company.”
At the same time, a perpetual dependence on expats at the top isn’t healthy. French,
South Korean, and Japanese companies in particular seem reluctant to trust Indians
for the top job. That could become problematic; LG and Samsung have found it hard
to attract Indian talent, and Suzuki doesn’t have a single Indian on its executive
board, leading to speculation that some of its recent labor problems may have cultural
roots. Solso agrees: “One mistake was too many expats at certain times in our history.
They did serious damage because they did not have a clue as to what was going on from
both a business perspective as well as culturally. I would
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