How Global Is Your C-Suite? Harvard Case Solution & Analysis

The globalization of firms can be -and frequently has been -looked at in different ways: in relation to the internationalization of sales or assets, cross-border supply chains or shared services, organizational structures, practical policies (promoting standardization versus customization) and so on. In this informative article, the authors look at much less-studied individual measures of globalization: the extent to which the executives who head the world's biggest corporations -at the CEO level and in the degree of the managers listed as reporting directly to the CEO -are not from the original country where the business is based.

Some studies suggest that national diversity in the top management team can be associated with better functionality. What's more, the presence -or absence -of non-native executives in the top management team of a company's can send a signal to workers outside the home country about the long term career prospects for foreign middle managers in the business as well as prospective hires. The basic pattern emerging from the authors' research, both at the very best management team level along with the CEO, is unmistakable: even at the world's largest businesses, natives normally rule the roost. The share has hardly budged since 2008. Looking at the full top management teams, the authors found that on average 15% of the top management team members, excluding the CEO, are nonnatives. The authors look for correlations that could explain why certain states have higher rates of nonnative CEOs and analyze some of the possible reasons for this. Moreover, they examine several levers for improving a firm's ability to manage international differences and spaces.

This is just an excerpt. This case is about GLOBAL BUSINESS

PUBLICATION DATE: July 01, 2015 PRODUCT #: SMR526-PDF-ENG

 

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