MNCs in China Seek Multi-Faceted Leaders

The complexity of the Chinese market not only requires a MNC to give careful consideration to its strategic goals before entry, it also necessitates a MNC to seek out a multi-faceted leader in order to be successful. For those who aspire to one day lead a MNC in China be prepared to do some serious self-examination and long term career planning. In terms of professional qualities, it is a prerequisite to have both managerial and technical experience in your industry. Your Chinese employees will look to you as an expert and they will be terribly disappointed if you prove incapable of disseminating any new knowledge. And, as the Chinese continue to gain expertise in international business techniques, the bar will only continue to get higher. Therefore, as China assumes an ever important role in the international strategies of many MNCs, it is important to distinguish yourself as one of your companies’ top performers. In order to prepare yourself for the nuances of doing business in China, it is also necessary to do one or more stints abroad before you will be considered for an assignment in China. Since Chinese culture is at the opposite end of spectrum of Western cultures, it is advisable to “ease” your career into China. This can be achieved by taking on an assignment in another developing market, in another Asian country, or perhaps both.

As you can see, becoming the successful leader of a MNC in China is not a spur of the moment decision. Not only does it require a long-term career commitment, but it also takes a certain type of personality. It is important to ask yourself if you possess a “multicultural mindset.” Such a mindset involves acknowledging the short comings of your own culture while being able to accept the culture of your host country. It also takes an adventurous spirit, a sense of humor and an open mind to succeed in China. Similarly, you must demonstrate a willingness to learn from your Chinese hosts. Entering China with an authoritarian style and heavy-handed US business practices will only lead to failure. Listening to the advice of your customers, employees, officials, and partners will lead you to discover how business is successfully conducted in China.

Of course, China has also its own unique contractions that can baffle the unknowledgeable Western business leader. One of these contractions is humility and strength. On the one hand, a successful leader in China must demonstrate humility and a willingness to be part of the team. On the other, strength must be displayed when sticking to key principles and the core aspects of the MNC’s corporate culture. Another contradiction is that of patience and speed. It is unrealistic to assume that changes can be made to your China operations overnight. It takes time and patience to gain a thorough understanding of the business environment in China. Conversely, China’s business environment changes at a rapid pace. It is necessary to stay informed and be capable to make quick decisions when the need arises. But, perhaps the most important skill a successful business leader in China must learn is how to implement guanxi. Guanxi, an integral part of the Chinese culture, is the concept of establishing strong, positive personal relationships with both your internal and external business associates. A strong Guanxi network is essential to success in China and you can expect to spend considerably more time developing these relationships than you would expect to spend maintaining similar relationships with Western business associates