Case Application 2 " The Power of Presence "

How do you successfully manage a growing international company? CEO Christian Chabot of Seattle-based Tableau now believes being there physically is an important piece in the often complex puzzle of international management. International growth is nothing new for Tableau, which was founded in 2004, As a leading provider of analytics and business intelligence software solutions, the company has more than 35,000 clients in over a dozen countries. Tableau provides software tools and interactive dashboards that allow users to generate useful business insights through the analysis and visualization of data. The company is on the cutting edge of data-imaging solutions for end-users, creating products such as Elastic, which allows users to create graphics from spreadsheets. Despite tough competition in the market for business intelligence from software giants such as Microsoft, Tableau has continued to maintain its share of the marketplace, and the company's value continues to grow with a 64 percent increase in revenue over the last year. Much of the company's growth is attributed to the company expansion into international markets, with an 86 percent increase in revenue last year from international markets, which now account for a quarter of the company's total revenues. Which plans to hire about 1,000 more employees in the next year, the company's projected continued success is evident. While more than half of their current 2,800 employees work in the company's Seattle headquarters, Tableau has 14 locations around the world in places such as Shanhai, Singapore, Sydney, and London. About 400 of the new employees will be hired outside of the Seattle headquarters, and Tableau's expansion will include opening new international offices. International growth creates many challenges for companies, particularly as they open and staff branch locations in different countries. Cultural differences, time differences, and simply the geographic distance can make it difficult to sustain the same management practices at home and abroad. How has Chabot managed the quick growth of this international company? One strategy was to spend almost a year abroad working in the company's London office. His focused time at that location helped grow regional sales, but also provided the CEO with valuable insights to support further international expansion. Chabot reported that the time he spent in London highlighted the importance of managing culture and people. Prior to the trip he did not have a true understanding of the challenges of international employees working for a U.S.-based company. He found that many working in international branch offices did not feel like they were taken seriously by those at the home office. Geographically remote workers can feel disconnected from a global company, particularly when they report to management they have never met in person at headquarters. Chabot's time working in London was valuable for employees in all locations of the company, as his actions sent the message that he feels employees outside of headquarters are important. While he spent time only in London, the fact that he spent a year away from the home office emphasized his belief that the locations beyond Seattle are important for the company's success. Chabot's experience is having such a profound impact on the company's success, Tableau is now encouraging other executives to spend time at international offices. Discussion Questions

1) Tableau staff its international offices primarily with host country nationals. What are the advantages and disadvantages of this staffing strategy?

2) Do you agree with Chabot that the company will benefit if more executives spend time in international offices? why or why not?

3) As Tableau executives get ready to spend time in the company's international offices, how can they prepare for the cultural differences they will encounter? What are some of the challenges Tableau will face as it hires1,000 new employees in one year?

4) State three ways, the workplace is becoming more diverse. Why is this happening?

5) Give a specific, concrete example of how managers need to manage differently or how organizations need to change for each of the three ways from part one.

Answer:

1) Tableau staff its international offices primarily with host country nationals. What are the advantages and disadvantages of this staffing strategy?

Answer:

The major advantage of the above strategy of Tableau to 'staff its international offices primarily with host country nationals' was to promote 'multiculturism' and 'ethnocentrism' in the organisation where polycentric attitude will be developed towards the host country employees by native employees. Also, staffing host country national employee will be benefited because they are best aware about the culture, demand and requirement of the local people; which will help them to figure out the things as per best feasibility.

Whereas the disadvantage could be a misunderstanding or internal conflicts when there is a lack of awareness of cross-cultural differences. In that case, employees in a foreign country will consider there work approach and practice is best in compared to others. Whereas the native employees may feel that foreign employees are incompetent and lack in effective skills, abilities and talent that is required to perform the job. This may be because of cultural diversity and lack of direct communication between the employees.

2) Do you agree with Chabot that the company will benefit if more executives spend time in international offices? why or why not?

Answer:

Yes, I completely agree with the strategy that was adopted by Chabot that 'an organisation which has a global presence benefits if the executive or top-level management spends time in international offices and showcase their regular physical presence rather than virtual existence.' This is because if an organisation has a global workforce and they are scattered geographically, it is important for the management to meet them regularly. Despite of thousands of developed technology and software that make the communication process ease, but it can't substitute the satisfaction and content that is achieved with the physical presence.

Also the organisational culture cannot be spread in the foreign branches by presentation or HR activities; it is the leaders and managers who spread them by demonstrating their skills, values and ethics. Hence, to make the remote employees feel connected and close to the organisational culture and environment; it is very crucial for the executive or managers to make their regular presence and meet them to resolve their problems or receive feedback from them towards the area of improvement.

3) As Tableau executives get ready to spend time in the company's international offices, how can they prepare for the cultural differences they will encounter? What are some of the challenges Tableau will face as it hires1,000 new employees in one year?

Answer:

Executives can prepare themselves for the cultural difference by reading and browsing about the characteristics of their culture, by increasing their network channel and frequently communicating with the employees of different culture and learning the differences and diversities, by removing all the emotional dissonance and biases while interacting with them; and embracing their uniqueness and diversity. All this practices will help them to better understand the cross cultural diversity. Also observing their body language and behaviour helps them to understand the differential features of other culture.

Some of the challenges that the company will face while hiring new 1000 foreign employees will be- the language barrier. Misunderstanding and conflicts due to different working pattern, different perception, different attitude and behaviour towards tasks. Additionally, the organisation with multicultural workforce face the difficulty of maintaining cultural differences in work-family relations and interpersonal relations. HR practice related to work-life balance and family practice in one country may not be feasible or appropriate in the other country. HR needs to consider their cultural difference, their mindset, requirement, need and expectation from the management and employer.

4) State three ways, the workplace is becoming more diverse. Why is this happening?

Answer:

'Globalization' is the primary reason for the workplace becoming diverse these days. Globalisation leads to expansion on an international level; where an organisation either by the means of acquisition or amalgamation enters in the international market and adopts the diversified culture.

'Talent Management' is the other reason where the organisation is becoming more diverse in nature. In order to select and recruit the best-talented employee; HR and management are also ready to enrol a foreign employee who belongs to a different culture, ethnicity and different geography. But if his skill and talent makes difference to the organisation function; companies are ready to embrace cross-cultural diversity.

Technology' has removed the barrier of geography and distance. Because of it, many new organisations are selecting employees from different regions and location. Hence, technology has also played an important role for the organisations to adopt the diverse culture.

5) Give a specific, concrete example of how managers need to manage differently or how organizations need to change for each of the three ways from part one.

Answer:

Victoria Tsai, a Japanese entrepreneur and founder of Tatcha has discussed her approach of taking the business globally and establishing it's brand in the international market.

Here approach includes 'hiring international experts' and 'non stop communicating and interacting with the global customers and stakeholders'. Hence, she too also emphasis importance on 'power of presence'. International success will follow by constantly reviewing and communicating with the international customers and marketers. This is an helpful technique or approach.