Leading and Motivating Global Teams Integrating Offshore Centers and the Head Office Leading and Motivating Global Teams Integrating Offshore Centers and the Head Office Vimal Kumar Khanna Boca Raton London New York CRC Press is an imprint of the Taylor & Francis Group, an informa business AN AUERBACH BOOK CRC Press Taylor & Francis Group 6000 Broken Sound Parkway NW, Suite 300 Boca Raton, FL 33487-2742 © 2017 by Taylor & Francis Group, LLC CRC Press is an imprint of Taylor & Francis Group, an Informa business No claim to original U.S. Government works Printed on acid-free paper Version Date: 20172219 International Standard Book Number-13: 978-1-4987-8474-0 (Hardback) This book contains information obtained from authentic and highly regarded sources. Reasonable efforts have been made to publish reliable data and information, but the author and publisher cannot assume responsibility for the validity of all materials or the consequences of their use. 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Visit the Taylor & Francis Web site at http://www.taylorandfrancis.com and the CRC Press Web site at http://www.crcpress.com Contents Contents v Acknowledgments ix About the Author xi Chapter 1 Introduction 1 A Note on Terminology 8 Chapter 2 Be “Truly Global” in Outlook and Character 11 2.1 Offshore Centers Are Not the Same as Outsourcing Vendors 12 2.2 Offshore Center Teams Are Not Treated at Par with the Head Office Teams 15 2.3 Concerns of Head Office Management 16 Chapter 3 Authority and Freedom to Offshore Center Management 19 3.1 Offshore Center Projects Are Extensions to Head Office Projects 21 3.2 Overall Project Control Resides with the Head Office Management 22 3.3 Head Office Project Head Exercises Direct Authority over Offshore Center Teams 24 3.4 Match Offshore Center Management Authority with Their Responsibilities 25 v vi Leading and Motivating Global Teams 3.5 Capitalize on Location Strengths 26 3.6 Head Office Project Head’s Key Result Areas Not Aligned to the Company’s Offshoring Objectives 27 3.7 Additional Responsibilities of Head Office Management to Address Their Insecurities 31 3.7.1 Additional Head Office Projects 31 3.7.2 Project Coordinator for Independent Offshore Center Projects 31 3.7.3 Align His or Her Key Result Areas to the Company’s Offshoring Objectives 33 Chapter 4 Integrate Offshore Center with Head Office but Retain Local Work Culture 41 4.1 Avoid Imposing Head Office Norms on the Offshore Center 42 4.2 Retain Offshore Center Career Growth Norms and Designations 44 4.3 Downsize with Consideration to Local Sensitivities 47 4.4 Share the Pain 50 4.5 Local Management Committee to Decide Offshore Center Norms 52 Chapter 5 Career Growth for Offshore Center Employees to Global Top Positions 55 5.1 Need for Deserving Offshore Center Employees to Reach Global Top Positions 56 5.2 Constraints to Global Career Growth of Offshore Center Employees 57 5.3 Grooming Offshore Center Employees for Global Top Positions 59 5.4 Fair Selection Process 60 5.5 Avoid a Common Pitfall 61 Chapter 6 Fair Representation of Offshore Center Management in Global Committees 69 6.1 Global Management Committees 70 6.2 Need for Offshore Center Representation in Committees 71 Chapter 7 Look Beyond Offshoring Only Peripheral Projects 81 7.1 Concerns of Head Office Management 82 Contents vii 7.2 Problems in Offshoring Only Peripheral Projects 83 7.3 Eliminating the Myths of Head Office Management 85 7.4 Benefits from Offshoring a Balanced Mix of Projects 87 Chapter 8 Avoid Over-Insistence on the Cost-Reduction Purpose of the Offshore Center 91 8.1 Weakening the Offshore Center’s Delivery Capabilities by Over-Insistence on Cost Reduction 92 8.2 Invest in Strengthening Offshore Center Capabilities for Long-Term Cost Savings 94 Chapter 9 Unified Awards across the Offshore Center and the Head Office 101 9.1 Limitations of Local Awards within the Offshore Center 103 9.2 Benefits of Instituting Global Awards 104 9.3 Global Awards in Companies with Multiple Product Divisions 108 9.4 Fair Evaluation Criteria for Global Awards 110 9.5 Proposed Actions if Offshore Center Employees Fail to Win Global Awards 112 9.6 Avoid Quotas in Global Awards 114 Chapter 10 Roles and Responsibilities of the Offshore Center Head 117 10.1 Factors Determining the Role of the Offshore Center Head 118 10.1.1 Offshore Center Size and Growth Plans 118 10.1.2 Visibility of the Company in the Country of the Offshore Center 119 10.1.3 Head Office Senior Management’s Knowledge of Running a Company in the Country of the Offshore Center 119 10.1.4 Nature of the Projects to Be Offshored 120 10.2 Functions Performed by the Offshore Center Head 122 10.2.1 Setting up the Offshore Center 123 10.2.2 Representing the Offshore Center to the Head Office Senior Management 123 10.2.3 Managing Offshore Center Engineering Teams 124 10.2.4 Building the Image of the Offshore Center in Its Country 130 viii Leading and Motivating Global Teams 10.2.5 Attracting Talent to Grow the Offshore Center’s Size 131 10.2.6 Training and Skill Building of Offshore Center Teams 134 10.2.7 Building the Offshore Center’s Local Work Culture 135 10.2.8 Representing the Interests of the Offshore Center in Global Committees 136 10.2.9 Expediting Offshore Center Decision Making 137 10.2.10 Overall Responsibility of the Offshore Center Support Functions 137 10.3 Evaluating the Performance of the Offshore Center Head 137 Chapter 11 Being an Expatriate Manager from the Head Office to the Offshore Center 141 11.1 Roles and Responsibilities of an Expatriate Manager 142 11.1.1 Transferring Knowledge of a Head Office Overall Project to the Offshore Center 142 11.1.2 Establishing a Division in the Offshore Center 144 11.1.3 Setting Up and Operating the Offshore Center 145 11.2 Preparation Required for the Expatriate Manager Role 146 11.3 Possible Additional Roles Post-Expatriate Assignment 149 11.4 Avoiding Some Possible Mistakes in Planning Expatriate Assignments 150 Chapter 12 Using the Offshore Center to Make Strategic Contributions to the Company 157 12.1 Need to Involve the Offshore Center in Strategic Decision Making 158 12.2 Conceiving New Products to Be Developed 160 12.3 Entering New Services Domains 163 12.4 Inorganic Growth through Strategic Acquisitions 164 Appendix: Abbreviations and Acronyms 167 Index 169 Acknowledgments I would like to thank the book’s editor, John Wyzalek, and all of the people at Taylor & Francis Group who worked tirelessly to ensure timely publication of this book. I sincerely appreciate the efforts of John Wyzalek in giving neces- sary guidance and support, providing valuable inputs, and taking timely actions throughout the process of publication, to ensure release of a high-quality book. I would like to thank reviewer Ginger Levin for providing excellent review comments that helped significantly improve the content of the book and bring it to its current form. I would also like to acknowledge the support of the people who helped me start the journey of publishing this book with Taylor & Francis Group. • The journey started with the well-reputed management book author and speaker Alfonso Bucero suggesting Taylor & Francis Group as being a suitable publisher for the topic of my book. I would like to thank him for sharing many valuable inputs with me, based on his prior experience publishing with Taylor & Francis Group. • I would like to thank my first contact in the Taylor & Francis Group, Kristine Mednansky, for her help and support in initiating the publish- ing process, which culminated in John Wyzalek becoming the editor of the book. ix