The Blog for Culture Vultures

Satiate your inner Culture Vulture with regular news and posts about cultural awareness, doing business abroad, working in a multicultural environment, HR diversity and global mobility.

Global Teams - A Guide For Multinationals

For global corporations, the borderless world offers a glimpse of what's to come. International success once meant having bodies and factories on the ground from São Paulo to Silicon Valley to Shanghai. Coordinating their activities was a deliberately planned effort handled by headquarters.

The challenge now is to weld these vast, globally dispersed workforces into superfast, efficient organizations. Given the conflicting needs of multinational staff and the swiftly shifting nature of competition brought about by the Internet, that's an almost impossible task. And getting workers to collaborate instantly—not tomorrow or next week, but now—requires nothing less than a management revolution.

Complicating matters is the fact that the very idea of a company is shifting away from a single outfit with full-time employees and a recognizable hierarchy. It is something much more fluid, with a classic corporation at the center of an ever-shifting network of suppliers and outsourcers, some of whom only join the team for the duration of a single project.

To adapt, multinationals are hiring sociologists to unlock the secrets of teamwork among colleagues who have never met. They're arming staff with an arsenal of new tech tools to keep them perpetually connected. They include software that helps engineers co-develop 3D prototypes in virtual worlds and services that promote social networking and that track employees and outsiders who have the skills needed to nail a job. Corporations are investing lavishly in posh campuses, crafting leadership training centers, and offering thousands of online courses to develop pipelines of talent.

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Culture still a major factor in expat failure

The Cartus Emerging Trends in Global Mobility: Policies & Practices Survey shows that an accelerated shift from long-term to short-term international relocation assignments is expected by the end of 2009. China's popularity as a destination is growing the fastest when compared with the U.S., Great Britain and India.

Cartus, a global mobility management and workforce development consultant, conducted the survey with 184 respondents from companies in 25 major industry segments. The organizations surveyed represent more than 83,000 assignees and have headquarters in 19 different nations.

Cartus also identified why these international assignments fail, regardless of being on a short-term basis. The top three reasons were family adjustment, at 71%; assignee personal style, at 48%; and cultural differences, at 40%.

This is easily remedied with intercultural and language training, which more companies are offering. The survey shows that intercultural training was offered by 55% of companies in 2007, versus the 28% offered in 2004. Meanwhile, 58% of companies offered language services for families, an increase from 30% in 2004.

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Localisation of expats problematic

Localisation of expatriates is problematic for employers, says ORC Worldwide's 2007 Survey on International Localisation Policies & Practices for Expatriates.

According to the report, 48 percent of the participants have seen an increase in the use of localisation over the past two years, yet the practice remains tricky.

Obstacles faced by employers when localising – that is, phasing out or removing expatriate assignment terms and conditions – include retirement plans, consistency in developing local pay packages, management preference for individual negotiations, establishing an acceptable local salary in low-salary countries, and employee requests for continuance of coverage for international schools and health care.

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Trend to shorter-term international relocation assignments

According to a new survey from Cartus, the premier provider of global mobility management and workforce development solutions, an accelerated shift from long-term to short-term international relocation assignments is expected during the next two years.

The Cartus Emerging Trends in Global Mobility: Policies & Practices Survey also revealed that international assignment volume has grown and is expected to increase in the future. The study also found that the number of assignment destinations is surging. Respondents named 51 different countries in their list of top three destination locations, a 76 percent increase over 2004. The United States continued as the most common destination for relocation assignments, but China overtook the UK for second place while Germany replaced Singapore for fourth place. China is expected to take over the top spot within the next two years, according to the survey.

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BBC fails to meet Diversity Targets

BBC fails to meet Diversity Targets


Diversity experts have applauded the decision by BBC executives to forgo their bonuses collectively worth £350,000, after the broadcaster failed to meet its diversity targets.

The corporation set itself stringent targets in 2004 of increasing the percentage of black and minority ethnic staff to 12.5% and 7% at senior management level, to be met by 31 December 2007.

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