My first day on the job is turning into a nightmare. In a few minutes
I'm scheduled to meet with a promising young manager who has botched a new
assignment. My charge: avert disaster. In three hours I must make a
strategy presentation to my new boss. The phone won't stop ringing and I'm
deluged with electronic mail.
Phew! It's a good thing this is make-believe. Seated in a makeshift
office in suburban London, I'm in the midst of a simulation just like one
that hundreds of Motorola Inc. executives around
the world will go through in coming months. It's part of a wide-ranging
evaluation to choose tomorrow's top managers.
Motorola, like many multinationals, is scurrying to find talented
leaders to run an increasingly complex, global business. As companies from
France's Renault SA to Cisco Systems Inc. snap up
far-flung firms or expand into uncharted territory, the demand for savvy
managers with international know-how is growing exponentially.
Moreover, in today's tight job market, many companies have concluded
they must rely primarily on homegrown talent. They are using psychological
tests and Internet-linked job simulations to pinpoint leading in-house
candidates. Some, such as Zurich-based ABB
Ltd., perform in-depth evaluations of top business school graduates to
select an elite group that is immediately sent on foreign assignment.
Developing Managers
"There's a shortage of management talent in many of the markets where we
operate," says Kelly Brookhouse, an industrial psychologist who directs
Motorola's executive development program. "We realized we need to develop
our next-generation managers."
The consequences can be dire for firms that fail to build up a cadre of
competent global managers. Poor decisions can lead to multibillion-dollar
flubs as products flop and marketing campaigns go awry. Indeed, Motorola's
push to beef up its management ranks came in the wake of costly mistakes
made as the company expanded beyond its traditional North American market.
The most spectacular flameout: the Iridium satellite telephone system,
which gobbled up more than $6 billion (6.96 billion euros) -- $3.5 billion
of it from Motorola -- before shutting down last year.
The costs are high in people terms, as well. Human-resources specialists
say that as many as 50% of the managers sent on foreign assignment
experience serious difficulties. Often these managers, or their families,
simply don't adapt well to a bewildering new culture. Such problems often
truncate promising careers, hurting both the individual and the
company.
"We don't do a very good job of selecting people for foreign postings,"
concedes Sir Brian Pitman, chairman of Lloyds TSB
Group PLC. In one instance, he said, the U.K. bank sent a
brilliant young executive to Argentina. "He only lasted one week," said Mr.
Pitman. "He just didn't fit in."
Increasingly, however, companies are getting smarter about how they
choose the managers they promote -- especially when sending them to a
foreign job. Evaluation tools have been around since World War II, when
officer training programs in the British and U.S. militaries developed a
series of intelligence and personality tests. The process includes
role-playing exercises designed to see how people react to a series of
real-world problems.
Such testing has been limited, however, by logistical headaches. The
role-playing portion of the test often requires several trained assessors,
so companies typically set up central test centers. Managers are flown in
from all over the world for evaluations that could last from one day to
three weeks.
Mobile Testing Procedure
To get around that hurdle, Motorola has partnered with human-resources
specialist Aon Consulting Worldwide to develop an Internet-based testing
procedure that can easily be deployed anywhere in the world.
During role-playing, test subjects use a specially configured laptop
computer to send and receive e-mails, access information about their
fictitious employer and consult their calendar. Phone calls, rather than
coming from the room next door, can now come from a continent away and with
the coming advent of video links, no role-playing specialists will need to
be physically present.
"We put people into a simulated environment and throw business
challenges at them to see how they respond," says Ms. Brookhouse. "We get a
fairly comprehensive picture of people's leadership profile."
The tests are supplemented by performance evaluations by each manager's
bosses and subordinates. Once all the results are in, people who have taken
the test are encouraged to design a plan to shore up their weaknesses and
build on their strengths. In China, managers have been encouraged to take
on special assignments that force them to develop new skills.
Motorola has a pilot program for the new procedure in China, where the
shortage of management talent is most severe. More than 150 people there
will have gone through the process by the end of the year, says Ms.
Brookhouse. The company plans to roll it out world-wide next year,
evaluating up to 500 executives.
As Aon executives in England explained how the simulation works, I
imagined myself enduring several hours of painful, awkward play-acting. In
practice, though, the experience is startlingly real-to-life.
I play the role of Chris Jefferson, a regional manager in the finance
arm of a fake conglomerate, Globalcom. As soon as I settle into a
windowless, brick-walled Aon Consulting office in Hampshire, the phone
calls, visitors and urgent tasks come so fast and furious that I quickly
forget it is all make-believe.
Demanding Role-Playing Exercise
As I scurry to prepare a presentation about a company that I hardly
know, I scour the computer, finding things like market research, results of
an employee survey and corporate press releases. But I keep getting
sidetracked by a steady stream of callers, like the irate customer who
rails shrilly of poor service and threatens to bolt to the competition. And
e-mail messages, some of them demanding immediate attention, keep popping
up on the screen.
"It was hard. A lot harder than I had expected," said Mandy Chooi, a
Beijing-based human-resources executive at Motorola who recently went
through the role-playing exercise. "It's surprising how realistic and
demanding it is."
Companies that use such assessment programs to identify skilled managers
often see a quick payoff. French food group Danone SA reduced its failure rate
among expatriate managers to 3% since it began an evaluation program three
years ago. That's down from about 35% before, says Jean-Rene Buisson, the
group's human-resources director.
Danone, which is pushing aggressively into new markets, from North
America to Eastern Europe and China, in 1997 set up a mobile test center
that operates in 10 European locations each year. The one-day evaluations
focus in part on characteristics that the company believes make people
successful in international jobs: flexibility and good listening
skills.
"Failures in foreign postings are always tied to a problem of cultural
adaptation," says Muriel Penicaud, Danone's development director. "We want
people to really integrate into a new culture."
Some companies believe they can get a head start on developing managers
who are at ease anywhere in the world. ABB's Swiss subsidiary, for
instance, two years ago began sending top university graduates to its
management evaluation center in Basel. In one 12-hour session, the job
aspirants go through psychological testing, then plunge into a role-playing
exercise with five other potential employees.
Foreign Assignment Program
Afterward each member of the group evaluates their own performance, as
well as that of others in the group. The whole process is overseen by ABB
managers and human-resource specialists who grade participants on their
ability to work in a team, and on leadership.
Of 100 young people tested each year, ABB hires 20. They are immediately
launched on a 16-month management training program, six months of which
involve a foreign assignment in places as far away as Japan and Chile.
About 60% of former trainees now hold management level jobs at ABB, says
Theresa Schneider, who runs the Swiss division's management development
program. That compares with 40% before the testing program began.
Back in the office in suburban London, I'm sweating. My boss, Jean
Dubois, is due to walk through the door in about 20 minutes and I'm far
from ready. There's a flip chart on an easel in the corner, but my
handwriting is illegible, so I'm feverishly typing up a sheet of key points
to hand her.
The phone rings. "Damn," I mutter. A singularly persistent colleague
wants me to send a team member to Holland for three months to help land a
big new client. I put her off politely, promising to call back later. But
I've lost precious time and when Ms. Dubois strolls in, the presentation is
still humming through the portable printer on my desk.
Sounds a lot like real life, doesn't it?