Industrial

In one sense, globalization is nothing new. For centuries, people have traveled to discover different parts of the world, to learn about new customs, cultures, foods, and traditions, and to develop business. But for companies caught up in the explosive acceleration of globalization in the past two decades, it has created a new set of challenges – especially where talent is concerned.

No longer confined to free trade zones or to India and China as low-cost sourcing regions, globalization is now truly global. Markets like Russia and Brazil have become nearly as prominent as India and China, which have themselves become destinations for end products. Meanwhile, the continuing pursuit of natural resources and increasing investments in infrastructure development in remote areas of Western Africa, Australia, Russia and other geographies have further magnified the challenges of globalization.

Faced with the unprecedented cross-cultural dynamics of these trends, many leading companies understand that in this new world simply having the right product and technology will not suffice. It is the caliber of their leadership that will make the real difference. They will therefore seek leaders who:

• Possess global experience and sensitivities, gained either by living in more than one country or managing global operations
• Know how to lead culturally diverse individuals
• Bring marketing skills that include the ability to incorporate the mindset and needs of the local customers
• Understand issues of financial compliance and legal processes, as well as the operational issues posed by the local talent pool and labor laws

The challenge for companies in filling the need for these new leadership competencies lies in maintaining a global perspective without losing sight of the local. The most successful companies will take a two-pronged approach: (1) developing a strong talent management program to develop future leaders and (2) partnering with a truly global search firm to systematically recruit strong leadership talent from far outside their home markets.

The key to an effective talent management program lies in a combination of learning and the exposure of high-potential individuals to different roles and geographies. The key to securing the ability to find leadership talent wherever it might be located lies in looking for a search firm that:

• Maintains a genuine global presence, with the ability to recognize, track, and measure talent worldwide
• Conducts searches in many functions, industries, and markets, providing the depth that boutique firms lack
• Executes cross-border searches seamlessly, with a one-firm approach that keeps the client’s interests foremost

As the challenges of globalization intensify in the coming years, companies that adopt best practices now in internal talent development as well as external search may not rule the world, but they will rule their worlds.

This article was first published in the IPG Newsletter.