Culture Shock: Is it still an issue?

1. Culture Shock: Is it still an issue? Alain Verstandig - President NET EXPAT Group Totally Expat - FEM New York, October 4th 2010

2. Today’s challenges for Expats • Greater speed and uncertainty: expats are asked to deliver quick results in more uncertain contexts • Challenging host operations: expats are not always welcome anymore due to the nature of their assignments (layoffs, aggressive sales objectives…) • Cultural readiness: expats are expected to have a good understanding of local cultures...but have less time for preparation • Challenges to implement new ways of working locally (empowerment, brainstorming, virtual team…)

3. Today’s challenges for Corporations Move beyond knee jerk reaction Economic prosperity Economic downturn • Cost Management • Quick savings, low hanging fruits • More commuters and ST • Localization • Little care about MT & LT impact as employer • Declining level of trust • Why send employees abroad? • Talent Management • Generous policies • Exceptions • War for talent, HR branding • IM recognized as central in Talent Management • Little constraints • How to grow our talent pool through expatriation? Can we really reconcile Cost and Talent Management?

4. Visible Part Hidden Part Misleading impressions… Looks increasingly similar Still differs very much!!!

5. Age 3: 45+ Age 1: 23 – 30 Age 2: 30 – 45 • Professional expats • Excellent Self-awareness • Stable couples • Challenges linked to Localization • Time for conclusions Cultural Shock: • Nicely ethno-relative • Seek win-win approaches • “Tell me who I am...” • Single/young couples • No or young kids • The sky is the limit... • Stereotypes around expatriation • Lack of self-knowledge • Limited experience abroad • All future CEO • Cultural Shock: • Minimization • Questions emerge after landing… •  Self-awareness • Experience gained through errors • More / too realistic • Responsibility of moving your family • Repatriation challenges • Cultural Shock: • Seek deeper information • Willingness to improve leadership Culture Shock and age groups...

6. Culture Shock and Leadership styles… How will these leadership styles be welcomed in the new host locationor by multicultural team?

7. Minimize impacts of cultural shocks Best practices: the old school Expat Intercultural training 2 days Partner Expatriation

8. Minimize impacts of cultural shocks Today’s best practices Expat Intercultural training 1/2 - 1 day Partner Expatriation

9. Intercultural Training Keep it short …. but mandatory! • Local people (employees, customers, officials…) expect your expat to be “culturally prepared” • Cultural differences become more subtle • No time for 2 to 3 days training prior to departure • ROI is … enormous … if you keep training SHORT and invest more in follow-up coaching • 98% of participants in NET EXPAT Intercultural training admitted it is a must and recommend it

10. Minimize impacts of cultural shocks Best practices On the job coachingSMCD Expat Intercultural training 1/2 - 1 day Partner supportJSC or SI Partner Expatriation

11. Effectiveness Integration Communication Culture Expat coaching Successful Management In Cultural Diversity • Answers the “how”: on the job counseling • Combine Intercultural + Executive coaching • Facilitate integration and leverage involvement and motivation • Ease interface with HR & line Mngt. • EXTERNAL coach: confidential, avoids conflicts of interest, non-judgmental… • Coaching 1/week for 6h up to 24h

12. GSK – Talent Management in action • Selected most senior relocating leaders and directors for SMCD programs • Linked local HR and NET EXPAT for pre-program briefing and needs assessment • Orientation call with expat • Carried out regular coaching sessions in host country • GSK assessed feedback from participants to constantly monitor added value

13. Case Study - GSK General Manager • North American citizen moving from Australia to UK • Senior expat with responsibility for Eastern Europe • Needs analysis & ExpAdviser identified key issues: • little visible cultural shock but … • Leadership type challenged by local operations • Managing meetings • Impact of relationship with family on productivity and expatriation • “Not knowing what you don’t know!”

14. Case Study - GSK General Manager • Intervention: • Leadership type and communication style challenged by local operations • Different style of interaction within business – learning to question • relationships vs business outcomes/productivity • Agreement in meetings without follow up actions/trust • Calls with his NET EXPAT coaches in Slovakia, Poland, Romania, Bulgaria, Hungary • Validation & 360 feedback • Continued Learning – questioning and delegating

15. Minimize impacts of cultural shocks Best practices On the job coachingSMCD Expat Intercultural training 1/2 - 1 day ExpAdviser Partner supportJSC or SI Partner Expatriation

16. Expat assessment • Expats today are an expensive resource Corporations need to double check why, who and how they send people abroad • Next to technical skills, soft skills are recognized as essential to successful expatriation • Increasing use of expat assessment tools like the ExpAdviser to bridge “Talent Management” & “International Mobility”

18. candidate’s score country/region reference

19. Minimize impacts of cultural shocks Best practices On the job coachingSMCD Predeparture coaching Expat Expat Intercultural training 1/2 - 1 day ExpAdviser Predeparture coaching Partner Partner supportJSC or SI Partner Expatriation

20. Predeparture phase Coaching objectives: • Warm-up & Motivate • Clarify host country cultural and leadership environment to anticipate issues • Delivered by home country coach (same cultural references) working in tandem with host based coach • Needed in 25% of your cases

21. Minimize impacts of cultural shocks Best practices On the job coachingSMCD Predeparture coaching Expat Repat coaching for Expat Expat Intercultural training 1/2 - 1 day ExpAdviser Predeparture coaching Partner Partner supportJSC or SI Repat Coaching for Partner Partner Expatriation Repatriation

22. Mood Time The Repatriation Shock (I) Repatriation Expatriation Positive ? Negative

23. Mood 1 to 6 months Time The Repatriation Shock (II) Sweet & Sour phase - Unconsciousness “Welcome home” - raising consciousness Conscious ability to deal with repatriation OK you’re back! High 1 2 4 3 Low

24. The Triple Reverse Cultural Shock • Reverse culture shock: • The Expat has changed, • His/her home country has changed, • The “others” have changed: the local employer, colleagues, friends... • Loss of Status & loss of power • Back to old war stories...

25. Conclusions • Cultural shocks are still impacting expat productivity but…they are more subtle, often underestimated, with a time bomb effect • Increase the ROI on international mobility: • Use expatriability assessments • Shorterintercultural training but to a wider audience • On-site coaching to help your employees “hit the ground running” • Repatriation support • Need to Anticipate & Communicate more than ever!!

26. Thank you for your attention NET EXPAT Inc 3455 Peachtree Road NE Atlanta, GA 30326 Tel +1 404 995 7035 www.netexpat.com – info@netexpat.com NET EXPAT has offices throughout America, Europe and Asia