Executive Coaching...Beyond the Myths
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Ann Houston Kelley, MA
Nomadic Life Management Consultants
This article is for executives and senior managers who are considering coaching. I offer some questions and considerations for you in your search for the right executive coach (for you) who can be a proper partner in your ongoing leadership development.
FAQ’s
- “So you’re an executive coach, should I lie down on the couch now?”
- “What is executive coaching really?”
- “If I come for executive coaching, will I end up leaving my job, my company, my wife, my family…?”
- “You’re the coach (‘the expert’); tell me what’s wrong and how to fix it.”
- “You tell me that our sessions are confidential. How do I know that you will not share what I say with others in the company?”
- “You’re just a psychologist, what do you know about leading organizations?”
- “HR says that I should come to you for coaching. I don’t have any time for this. I don’t see how coaching will add any value to what I need to do for this company.”
These are just some of the typical questions and opinions that I hear from people who contact us for executive coaching. The executive coaching field is booming and many, many people (both qualified and unqualified) are calling themselves executive coaches these days. It is no wonder that so many myths and misconceptions about executive coaching abound.
In order to set a context for my remarks, I am currently providing coaching to senior managers and executives based in Europe who are working for international organizations spanning a number of industries. About 70% of our coaching clients are expatriates.
What is executive coaching?
The activity of ‘coaching’ has been around for many years although the word(s) to describe it may have been different. Definitions of ‘coaching’ vary greatly. The following are a few definitions that capture some of the key essentials of executive coaching.
- “Executive coaching is the process of equipping people with the tools, knowledge, and opportunities they need to develop themselves and become more effective.” 1
- “Executive coaching is an experiential and individualized leader development process that builds a leader’s capability to achieve short- and long-term organizational goals. It is conducted through one-on-one interactions, driven by data from multiple perspectives, and based on mutual trust and respect. The organization, an executive, and the executive coach work in partnership to achieve maximum impact.” 2
- “Executive coaching is a formal engagement in which a qualified coach works with an organizational leader in a series of dynamic, confidential sessions designed to establish and achieve clear goals that will result in improved business effectiveness, both for the individual and the organization. A good coach helps executives develop clarity of purpose and focus on action.” 3
- “I view coaching as a one-on-one or group service to (mostly) senior executives designed to create more effective, healthier organizations. This definition assumes that when senior executives improve their performance, such benefits spread throughout the organization.” 4
I define ‘executive coaching’ for potential clients as a “time-limited, contractual, confidential and ‘results-oriented’ partnership designed to equip them with the insights and tools that they need to develop themselves and their organizations”. This coaching can be with an individual executive or an entire senior management team.
I am currently doing more one-to-one executive coaching than group executive coaching. However, I have found that team executive coaching (if handled properly) can be a very powerful way to accomplish significant organizational change in a short period of time. The coach can work simultaneously on individual and system issues, e.g.:
A Danish General Manager has recently been appointed regional director (EMEA) for a UKheadquartered company. He wants to get started with his new management team in a good way. He and the other members of the team take a number of assessment instruments (e.g. work style, personality and 360 degree instruments). The skilled executive coach can then debrief the results of the assessment with the team. Individual managers on the team learn about their individual effectiveness strengths and developmental needs. In addition, the team can learn about itself and its strengths and developmental needs in facing upcoming business challenges.
I expect to see more of a shift to the use of team executive coaching in the future.
The beginning of wisdom is to call things by their right names.
Chinese proverb
‘Coaching’ is not the same as management consulting, mentoring, counseling or short-term psychotherapy. Management consultants often come in to ‘fix a problem’ and they may offer a defined solution to the problem. In coaching, it is essential that the client comes to his or her own conclusions about the best way to go forward. I believe that an executive coach should be a ‘guide on the side’ rather than a ‘sage on a stage’ although there are certainly a number of ‘executive coaching gurus’ in the marketplace these days. Executive coaching should go beyond the traditional idea about ‘mentoring’ (i.e. an internal, older manager who helps you to expand your networks and gives you career advancement advice).
Different cultures use the terms ‘coaching’ and ‘mentoring’ very differently. One well-known UK coaching and mentoring firm states: “Coaching is primarily about performance and the development of specific skills. Mentoring is much more broadly based and intuitive focusing on developing capability and often includes longer term help in career self-management.” 5 The term ‘mentoring’ seems much more widely used in the United Kingdom than in continental Europe. Many of our international clients only have familiarity with the term ‘coaching’ from the field of athletics. It is important to find the words and terminology for the coaching process that make sense to the client.
There is a continuum between executive coaching and counseling or psychotherapy. However, coaching should focus on the present and the future while counseling or psychotherapy focuses mainly on the past and the present. In my coaching work, I consider the whole person (i.e. inside and outside of work) although the main focus of our discussions is around work. There are times when psychotherapeutic issues come up in executive coaching. I will acknowledge these issues explicitly when they arise and then discuss some options for addressing them with my client. I then make a judgement about whether these issues can best be handled within the coaching relationship. If not, then I will refer the client to a psychotherapist. If my client is having relationship difficulties, these difficulties may be impacting his or her ability to lead. However, in this case, I would most likely encourage him or her and the partner to seek couples therapy together.
The true journey of discovery does not consist in searching for new territories but in having new eyes.
Marcel Proust
What are the issues that people typically bring to coaching?
Executive coaching clients (will) present with a variety of issues of varying levels of complexity such as:
- sharpening leadership effectiveness,
- improving relationships with a boss, peers, direct reports or key stakeholders,
- managing conflict,
- effective international career management,
- leading organizational change,
- using organizational diversity to ‘get the job done’,
- building and maintaining a high performance, globally-dispersed team,
- balancing head office demands with regional and local realities,
- goal- and priority-setting,
- improving self-confidence and personal effectiveness.
There may be other issues that emerge as a result of the assessment phase at the beginning of the coaching process.
Finding the right match in a coach
Example is not the main thing in influencing others, it’s the only thing.
Albert Schweitzer
Since you are going to be the ‘client’, you should be able to specify the characteristics, competencies and values that are important for you. When I am being interviewed as a possible ‘executive coach’, I am quickly asked 1) whether I have been a manager myself and 2) questions around my knowledge and experience of current business practices. You may have a preference for someone of a certain age group, gender or nationality (for example). I do point out to potential clients however that, if I am too much like them, then I might not be able challenge them sufficiently. Likewise, if we are too different, then we might not be able to forge an effective working relationship.
What are the key competencies that you want in an executive coach?
- Languages,
- management experience,
- experience in your firm or sector,
- experience coaching your level of management,
- expatriate experience,
- membership in relevant professional organizations.
There is both science and art in the practice of executive coaching. There needs to be ‘good chemistry’ between you and the coach. You need to feel comfortable with his or her personal and professional style and that s/he will both support and challenge you in the coaching relationship in culturally appropriate ways. I would work very differently with a male Dutch manager than I would with a female Irish director, for example.
There are also some additional (more intangible) values that you may find important to have in a coach such as trust, respect and safety. If you are discussing an IPO or a potential takeover bid, you need to be sure that the coach will maintain confidentiality. If the client is referred to you by HR, you need to agree with your client and HR what information will and will not be shared back with HR. If your coach is coaching other managers within your organization, you need to feel confident that your information is not going to be shared. You should also not be hearing information about those other coaching relationships.
Where to look for an executive coach?
This is a tough question to answer since the field is currently vastly unregulated. There are many international organizations vying to be ‘the certifying body’ for executive coaches. Companies in the United Kingdom have become so frustrated with the inability of the field to regulate itself that individual companies are specifying their own criteria for external executive coaches.
‘Word of mouth’ may be one answer. Your company’s human resources department may be another source. Some companies are now developing databases of executive coaches who meet company-defined coaching competencies.
The process of coaching
Counsel woven into the fabric of real life is wisdom.
Walter Benjamin
There are five main stages in the coaching process.
Interview
You should have a face-to-face chance to meet with a potential executive coach to evaluate him or her. This is the time for you to ask a number of questions about the person’s background and experience.
- Does this person listen well and treat you in a respectful manner?
- Do you think that you can risk being vulnerable with this person?
- Can this person help you to develop?
- Is there the right kind of ‘chemistry’ between the two of you to develop an effective working relationship?
- Can she help you reach your goals?
- Does this person have the cross-cultural and business sophistication you are seeking?
I am being asked more and more to come in as one of 2-3 executive coaching candidates to be evaluated by a potential client. I also make my own assessment of whether I think that I can be of help to them. The executive coaching relationship is a two-way partnership.
Contracting
The coaching process should have an outcome which is well-defined and measurable. The roles and responsibilities of the coach and the client should be specified. The elements of the coaching process should be clearly specified. There should be clearly-defined evaluation methods and an established timeline for the coaching process. Fees and expenses should be indicated. Confidentiality should be addressed. Often my executive coaching clients are referred to me by someone else (e.g. HR Director or the client’s boss). These are important stakeholders in the coaching process. I have to manage the relationship with them and their expectations in a way that helps the coaching process. I have to be clear with my client about what I or will not share with them.
The significant problems we face cannot be solved at the same level of thinking we were at when we created them.
Albert Einstein
Assessment
Executives are busier than ever these days. They need to see a proper ‘return on investment’ for the time they spend in coaching. I start all of my executive coaching assignments with an assessment phase. I will ask for a group of assessment instruments (i.e. both self-assessment and multi-rater/360° instruments) that fit the client’s context. Some clients have recently been assessed on the job or in a leadership development programme and that data is very useful. I will also ask the client for permission to conduct a number of targeted interviews of those people in the company who are closest to the executive. The client and I will decide on how s/he will introduce me and the interview process and what topics should/should not be pursued. I may also ask to observe the client in a team meeting setting. At the end of the assessment process, I will present the results and themes. I then work with the client to set measurable targets.
Work itself
The coaching itself can be done in a variety of settings and ways (e.g. face-to-face at the client’s primary location or off-site, by telephone or videoconference). The frequency and type of coaching sessions need to fit the issues, the schedule and the cultural context(s) of the client. When working with clients who are operating in cultural situations where the nonverbal communication is especially important, I will deliberately plan more face-to-face and team observation sessions.
Many are stubborn in the pursuit of the path they have chosen, few in pursuit of the goal.
Friederich Nietzsche
Professional and personal change and development can be a difficult and slow process. In the coaching process, it’s important to plan for intermediate evaluations of progress in order to ‘celebrate’ the smaller achievements that contribute to reaching overall goals. Clients should have a well-selected group of trusted colleagues who are giving them regular feedback about their key issues throughout the coaching process.
Evaluation
A formal process of evaluating the outcomes of the coaching process can involve a second round of a multi-rater (360°) assessment and targeted interviews. The client should also evaluate his or her progress. A final report to the client should indicate what has been achieved and what the outstanding issues still are. Professional and personal development is, after all, a ‘work in progress’.
Conclusion
In times of change, those who are prepared to learn will inherit the land, while those who think that they already know will find themselves wonderfully equipped to face a world that no longer exists.
Eric Hoffer
“Executive coaching” is a modern term for a profession which has been practiced for many centuries. Today’s practitioners are using both old and newer tools in plying their trade. It is important for you the consumer to have a clearer understanding of what executive coaching is and is not . You should also be able to have clear expectations of an executive coach and the process of coaching. This article was intended to highlight some of the key issues in finding an appropriate executive coach to assist you in your development.
References:
1 Peterson, D.B. (1996). “Executive coaching at work: The art of one-on-one change”. Consulting Psychology Journal: Practice and Research, 48(2):78-86.
2 The Executive Coaching Forum (Third Edition, 2004).The Executive Coaching Handbook. www.theexecutivecoachingforum.com
3 Miller, Karen Kirkland and Wayne Hart (2001). Choosing an Executive Coach. Greensboro, North Carolina, Center for Creative Leadership.
4 Kets de Vries, Manfred F. R. (2004). Coach or Couch, Anybody? The Zen of Creating High-EQ Organizations. Fontainebleau, France, Insead Working Paper Series.
5 Clutterbuck, David. “Mentoring/ The most frequently asked questions about mentoring/What’s the difference between coaching and mentoring?”. www.clutterbuckassociates.com
Beyond Expatriate: Exile or Resident Abroad
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Drs Maria Trepp and Ann Houston Kelley, MA
Nomadic Life
Multicultural Identity
Women who move internationally for short periods of time face a number of challenges. However, if they remain abroad for a longer period of time, the challenges become more complex. Questions about status and identity become more pronounced with the length of time out of one’s country of origin. The answer to “who am I?” and “where is my home?” are not so simple anymore. Changing lifestages also add to the complexity of the situation. A better understanding of the issues can enable women who are in this situation to face the challenges of this lifestyle more effectively.
Berry uses the terms “assimilation”, “integration”, “separation” and ”marginalization” to describe the possible experiences of the individual who is trying to adapt to a new culture or cultures. His model describes the balancing act that goes on between one’s original culture (e.g. passport country) and a second culture. In reality, most women who stay on the move or who relocate permanently are often balancing three or more cultures (e.g. original culture,” international community” culture, and host culture, etc.).
Assimilation - “going native”
Assimilation is an ongoing process of absorption into the culture that is perceived as dominant or more desirable. The goal of the assimilation process is to become socially accepted by members of the new culture. Women who marry someone from another country may choose or have to choose to assimilate when they move to their spouse’s country.
Integration - “foot in two (or more) worlds”
Integration describes maintaining a positive relationship with both cultures without having to choose between them. An individual can alter his or her behavior to fit a particular social context. A woman who makes a voluntary choice to settle in a new country may choose to maintain connections with her original culture (e.g. joining a women’s club for her nationality) while also choosing to get involved with the new culture (e.g. taking local culture and language lessons).
Separation - “keeping your distance”
Separation occurs when an individual maintains no substantial relationship to the new cultural group. The choice is to keep up one’s traditional way of life outside full participation in the larger society. Women who move often and stay in the “international community” culture may not have the energy or desire over time to significantly integrate into each new country.
Marginalization - “left out and alone”
The situation in which one loses cultural and psychological contact with both one’s traditional culture and the new society can be labeled as “marginalization” of the individual. Many women who stay on the move or who relocate permanently can identify with the feeling of being “marginal” at least temporarily. “Who am I?” and “where do I belong?” can be questions that go along with these feelings.

Some of the women who stay on the move or who relocate permanently see themselves as making a conscious decision about these options (e.g. choosing to try and assimilate or integrate into the host culture). Others see these options as the result of circumstance or unconscious choices (e.g. feeling “separate” because they can’t speak the language or even “marginal” when they’re not feeling at home anywhere).
These women describe moving through these options differently based on factors such as: lifestage, occupation, income, and length of stay and cultural norms in the new country. They also comment on the influence of how their actions are received or perceived. Women who have tried to assimilate fairly completely into their spouse’s country can still be perceived as “foreigners” in certain situations.
In order to understand these options more fully and determine where you are, you can consider the following areas of behavior and value choices:
-
Language:
What language do you use in everyday life, emotional situations, when you think, when you dream? Which language do you prefer? What papers do you read, television programs do you watch?
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Customs:
Which holidays do you celebrate? What kind of foods do you prepare?
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Social contact:
How often do you have contact with people from your native culture or host culture (daily, weekly, monthly)? How often do you visit your home country?
-
Values:
Have you changed your ideas about what’s important in following areas as you have changed cultures?
- gender roles
- the meaning of work and career
- family life
- education of children
- what you call home
- where you want to retire
The answers to these and other questions can help you to assess and acknowledge how you have adapted to new cultures in the past and also how you are currently adapting to your present situation. In addition, there are ways in which you can more consciously make decisions about being effective in your future life as a woman who is staying on the move or relocating permanently.
“Who am I?” (Identity and Self):
Women who stay abroad for a longer period of time describe a number of difficult situations related to identity and cultural adaptation:
1. “How she is received”
A woman may intend to assimilate as fully as possible into the new culture and is not “allowed in” as fully as she would like.
2. “How she is perceived”
A woman may be pleased that she can successfully move between her original culture and the new culture and is then perceived as being a native of the new culture and is expected to regard that as a compliment.
3. “How often she must change”
A woman may discover that she must assimilate, integrate, or be separate from the new culture based on the requirements of the particular situation.
Meeting the challenge:
Find a core identity for yourself that remains consistent across moves and cultures. Make conscious and realistic choices about your cultural adaptation. Ask for and get support for your choices from family and friends. Maintain a willingness to be flexible and have a sense of humor.
“How do I view my situation?” (Maintaining Perspective)
Women who remain abroad sometimes have difficulty maintaining a positive attitude towards new cultures and towards a multicultural life. Sometimes it’s easier to see the host culture or the overseas lifestyle as “all bad” and to see one’s culture of origin as “all good” than to continue to acknowledge the positives and negatives of each culture. Women who stay abroad also sometimes regret what they perceive as missed opportunities or poor choices (e.g. “if only I’d...”).
Meeting the challenge:
Allow yourself to see both the pluses and minuses of different cultures. Use being in a new culture as an opportunity to “re-invent yourself”. Acknowledge and accept the choices that you have made. Give yourself credit for ways in which you have grown. Value the benefits of a multicultural life (e.g. increased linguistic ability, cross-cultural skills, advanced maturity, and an expanded worldview).
How will I spend my time? (Setting Priorities):
Maintaining a multicultural life requires a time and effort. Women who are abroad for a longer time may sometimes ask themselves, “is it worth it?” or ”what will I have to show at the end for all of my efforts?”. It takes energy to keep up multiple social networks, to speak several languages, to be up-to-date on cultural and political developments in two or more countries, and to maintain your ties with your culture of origin.
Social networks:
The literature indicates that those who are most successful at managing a bicultural existence have established some form of stable social networks in both cultures. It takes time to make new friends. It takes even more time and commitment to maintain several social networks.
Language competency:
It is important to maintain one’s language of origin as well as learning new ones. It can, however, be a frustrating experience to loose proficiency in your mother tongue or not to reach the level you desire in a second, third, or fourth language.
Awareness of customs, cultural values, and politics:
It takes a conscious effort to understand the customs, values and politics of a new culture and at the same time to continue to value one’s own. In mixed culture couples and families, women often must take even more time and energy to maintain a healthy balance of cultures, especially where children are concerned.
Maintaining contact from a distance:
Having aging or ill parents or old friends in difficulty is even more problematic from a distance. Women who stay abroad for longer have had to re-examine and sometimes adapt their roles in this situation. Being far away means that there are certain ways in which you cannot provide help or support.
Meeting the challenge:
Acknowledge the time, energy, and effort that a multicultural life requires. Be patient with yourself and family members. Clarify your personal values or values as a couple in order to be better able to set priorities.
References:
Berry, J.W. (1992). Acculturation and Adaption in a New Society, International Migration, 30, 69-86.
LaFramboise T., Coleman, H.L.K., Gerton, J. (1993). Psychological Impact of Biculturalism: Evidence and Theory. Psychological Bulletin, 114, 395-412.
Coming Through the Tunnel:
Facing Mid-life Challenges Abroad
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Ann Houston Kelley, MA
Nomadic Life
Introduction
Facing mid-life issues in one’s country of origin can be challenging enough. You have gone into a tunnel and while you’re in there the tunnel keeps changing shape, size and destination. Identifying some of the unique characteristics of experiencing mid-life issues ‘on the road’ as well as some of the creative ways in which ‘women on the move’ have addressed them can help you in making your way successfully through this particular tunnel.
Professional Identity
”What am I going to be when I grow up?” You may have started with one professional identity in your country of origin. That identity may have changed over time depending on a variety of factors.
Job or professional development opportunities for internationally mobile women vary according to the conditions for particular professions in particular locations. Much has been written about the value of having a ‘portable career’ when one is moving internationally, especially if one is moving more frequently. The reality is, however, that the ability to practice one’s profession will depend on the rules, regulations and cultural expectations of your particular host country.
Is it acceptable for you to work in your profession in your host country? Your nationality (e.g. being a non-eu citizen in an eu country) or company regulations (e.g. spouse with a work permit but you are prohibited from working) may inhibit your ability to seek paid work. In the Netherlands, job advertisements can state an upper age limit of 30 or 35 years of age for applicants. For those who are in their 40’s, 50’s or 60’s, these job advertisements can be a painful reminder that the ‘sky is not always the limit’ in terms of professional opportunities. Fortunately this form of discrimination is starting to be challenged not just in the Netherlands but also throughout the European Union. It may however take longer for the cultural attitudes to change in some countries about the value of older workers entering the labour market.
The number of foreign moves that you have made has an impact. Women who move frequently because of a spouse’s career may have more difficulty in maintaining a consistent career path.
Many internationally mobile women in their mid-years are giving themselves permission to rethink and adjust their professional goals. Some of these women have re-channelled their expertise in new directions or changed fields entirely. Others are experimenting with part-time versus full-time work or even becoming entrepreneurs for the first time.
Some women volunteer their time. Volunteering can provide an excellent opportunity for women to develop skills in new and creative ways. Many international communities have benefited enormously from the important contributions that these women are making.
Other women in their middle years are realizing a lifelong passion to go back and study in a particular area. The Focus organisations in London and Brussels, WICE in Paris, Connecting Women in the Netherlands and WIN in Stavanger are all examples of community organisations active in promoting continuing professional development and education. Corporations such as Shell are discovering that providing professional development resources to internationally mobile spouses makes both ‘business and people sense’.
Personal Identity
The question of “who am I now as a person?” also arises for internationally mobile women in their 40’s, 50’s and 60’s. Women in this group who have lived their entire lives in the same place confront the personal identity question at this time, let alone adding the influence of international mobility. It may well be impossible to sort out how much is due to changing life circumstances and how much is due to the international experience.
The intercultural mobility literature speaks about keeping a core identity that can be enhanced by the experience of moving internationally. Mary Catherine Bateson in “Composing a Life” and Robin Pascoe in “The Expatriate Wife’s Guide to Culture Shock” both write eloquently about identifying the reappearing themes in your life in order to ‘re-invent yourself’ as you move from place to place and through different lifestages. It is however quite important also to acknowledge that the determination and energy to ‘re-invent yourself’ can indeed ebb and flow during your middle years.
Health and Aging
The natural aging process is occurring and, for women in their 40’s and 50’s, menopause is significant. For those who are internationally mobile, getting up-to-date and accurate medical ninformation, finding the best local resources and also having a trusted peer group for support can be additional hurdles. The philosophical approach to menopause (and other medical conditions) often varies by country. In the Netherlands, doctors sometimes have a more conservative attitude towards menopause and hormone replacement therapy, but alternative treatments and herbs are also readily available.
This is also a time when many women face for the first time having a serious illness themselves or supporting a spouse or partner with a serious illness. Important basic life questions arise when one is faced with a life-threatening condition in a foreign country. For example, “how can you quickly get the information and treatment that you need?”, “where do you need to go to get it?” and “what support systems do you have during this difficult time?”. Many internationally mobile women now have aging or dying parents ‘back home’ and are wrestling with issues around caring and grieving from a distance.
Single, Marital and Family Transitions
Single women in their 40’s 50’s and 60’s who are internationally mobile face a unique set of challenges. They work hard to create and maintain support networks and keep a healthy balance between work and leisure.
International mobility tests marriages and families. The normal mid-life family transitions (e.g. teenagers, university-bound children, adult children’s career and relationship challenges, aging or dying parents, spouses or partners with additional work demands) become more complex internationally. It can be difficult when you do not have the same community resources that you might have in your country of origin or are simply far away from family members at critical times. International mobility can seem less attractive when you’re missing your grandchild’s first years. As you grow older, it may become even more important to make the effort to participate in the important life events of family and friends both near and far away.
For internationally mobile women, resilience and adaptability become quite critical during these decades. Taking the time to care for yourself, to nurture your relationships and to seek peer support or community resources can help with these transitions.
Preparation for Retirement
The rules of the retirement game are changing. The assumption of a single career within a single company until a retirement age of 60 or older is no longer valid. Companies are encouraging employees to retire earlier (e.g. between 50-55 years of age). Repatriation often entails a change of position and employer. According to a recent Conference Board Study, only 38% of Americanbased companies and 74% of European companies guarantee a position to returning expatriate employees. Another study of returning American expatriate employees indicates that 20-48% of them leaves the company within the first year of their return.
The importance of having two wage earners in the family becomes more significant. Partners may need to shift the role of primary wage earner back and forth. Do you have the financial resources to cope with a layoff or early retirement situation?
Another concern is to have a sufficient and guaranteed pension from private and public sources. Public retirement systems in some countries will face significant financial challenges in the future. You need to be well informed about the levels of coverage and portability of your medical and disability insurance and pensions as you move internationally during your middle years. Retirement preparation is requiring some new ways of thinking and planning. Where do you want to retire and where can you retire with maximum health and financial resources? The decision about where to retire often changes as one is outside one’s country of origin for a longer period of time. When the time arrives, retirement to one’s home country may not be either possible or desirable. Do you want to be part of a particular community when you retire and how can you start working towards that now especially if you want to retire in another location? In bI-cultural marriages, the discussion of where to retire can have even more dimensions.
Expatriation the Times Are A-Changin'
Ann Houston Kelley, MA
Nomadic Executive Development
- Times are tough. How can we improve the return on investment (ROI) for our expatriate population?
- How do we convince a top talent senior exec to take a particularly challenging expat assignment?
- How long should it take for an incoming expat to be fully productive on the job?
- What should I be doing to help an expat adjust on-the-job more quickly?
- How do I address apparent off-the–job adjustment problems that my valuable expat is having?
- What can my HR colleagues and I do to reduce the constant complaining from our expats and their spouses?
These challenging questions are being asked frequently by the senior leaders and HR professionals who are responsible for handling their expatriate population.
Ann Houston Kelley, MA
Nomadic Executive Development
- Times are tough. How can we improve the return on investment (ROI) for our expatriate population?
- How do we convince a top talent senior exec to take a particularly challenging expat assignment?
- How long should it take for an incoming expat to be fully productive on the job?
- What should I be doing to help an expat adjust on-the-job more quickly?
- How do I address apparent off-the–job adjustment problems that my valuable expat is having?
- What can my HR colleagues and I do to reduce the constant complaining from our expats and their spouses?
These challenging questions are being asked frequently by the senior leaders and HR professionals who are responsible for handling their expatriate population.
In the meantime, the world economy is in turmoil, markets are fluctuating dramatically; “further cost-cutting” is the latest battle cry and the ability to develop and retain top talent takes on an added significance. Corporate HR professionals responsible for expatriation are being asked to both innovate and ‘do a lot more for less’. Corporate leaders are demanding to see an improved return on investment for the money spent for expatriation. Global organizations are coping with this situation with varying degrees of success.
Top talent executives, professionals and technical specialists are also looking at the return on investment for themselves and their families for choosing specific expatriate assignments or an international career. They are demanding more from companies in terms of compensation, benefits and services. Dual career issues are making this a more complex process. 2/3 of expatriates recently surveyed (ORC, 2007) indicated that they were working longer hours abroad than they did at home and often there is significantly more business travel involved with these positions. The negative impact of these the work-life pressures is being raised by more and more expatriates.
Some of the trends and statistics in the field are worthy to note. The nature of many international organizations is changing with increasing numbers of cross-border joint ventures. There is a decline in the proportion of expatriates going from the developed world to the developing world and an increase in assignments between developed countries. The profile of the typical expatriate is also changing and becoming much more varied. Their contract terms are changing as well, with a dramatic increase in the numbers of expatriate workers working on local contracts. This indicates that policies for preparing and supporting expatriates should be strategically targeted to the specific needs of particular subgroups of expatriates with significant cost savings to their organizations. A variety of newer types of expatriate assignments (e.g. interim managers, project team work, short-term job rotations, third country recruitment) are meeting the business needs at lower costs to their organizations.
While about 30% of all expatriate assignments end in outright failure, there is clear evidence that a higher percentage of expatriates fail to be fully productive during their international assignment. The cost for an expatriate on an international contract typically exceeds 2-3 times the salary/benefits for an assignee per assignment. It is interesting to note that, in the PwC European Policy and Practice Key Trends Survey 1999/2000, the top 3 criteria for assessing an employee’s suitability for international assignments are
- Job-related skills (96%),
- Leadership skills (74%) and
- Career development for the employee (72%)
In contrast, the five reasons given most frequently for assignment failure (in order):
- Intercultural adaptability of the spouse
- Children’s educational needs
- Emotional resilience
- Spouse’s career
- Lifestyle suitability
were the least important criteria for assessing suitability. The top 3 criteria for assessing suitability are probably not going to change significantly. However, some companies are starting to do a proper assessment of potential expatriate candidates to screen out and develop high – risk candidates for future assignments (Grove and Hallowell).
It is easy to assume that the difficulties will arise on the first assignment only, while, in reality, they often arise on a subsequent assignment because of age and life-stage issues for the expatriate and his/her family (e.g. health issues for the older expats, school issues with teenage children, spouse career issues when the children leave home, distance from aging and ill parents, special issues for long-term expats). Companies that anticipate these issues and address them proactively with their international employees are doing a better job of retaining and utilizing top talent.
Knowledge transfer is another important investment issue with the expatriate population. Companies should be benefiting from lessons learned by the expatriate both while s/he is on assignment as well as after the assignment ends.
Repatriation can be one of the most difficult transitions for expatriates, particularly because it is often not anticipated fully by either the company or the returning expatriate and family. There are real ROI consequences for the sending company. Unfortunately, 25-40% of expatriates leave their sending company within two years of returning. Proactive global organizations are taking steps to promote effective communication channels with their expatriates before, during and after their assignments, which results in better knowledge transfer and learning for the organization.
During these turbulent economic times, expatriation is certainly one area where companies can look to improving their ROI. Progressive companies are doing this with a strategic focus on:
- Designing ‘fit for purpose’ job assignments
- Selecting out and developing high risk candidates
- Providing targeted coaching to expats and their managers
- Implementing processes to guarantee knowledge transfer between expats and the sponsoring company
- Taking additional steps to retain top talent expats throughout their careers
What could you be doing to boost the rate of return on your expatriate investment?
