Harvard Case - Solvay Group: International Mobility and Managing Expatriates
"Solvay Group: International Mobility and Managing Expatriates" Harvard business case study is written by Boris Groysberg, Nitin Nohria, Kerry Herman. It deals with the challenges in the field of Organizational Behavior. The case study is 42 page(s) long and it was first published on : Jan 22, 2009
At Fern Fort University, we recommend that Solvay Group implement a comprehensive and strategic approach to international mobility, focusing on employee well-being, cultural sensitivity, and talent development. This approach should prioritize effective cross-cultural communication, robust support systems, and a clear framework for career progression for expatriates.
2. Background
This case study focuses on Solvay Group, a multinational chemical company, and its challenges in managing expatriate assignments. The company faces issues related to high turnover, cultural misunderstandings, and a lack of consistent support systems for its international employees. The case highlights the experiences of two expatriates, Jean-Pierre Dubois and Marie-Claire Dubois, who encountered difficulties adjusting to their new environments, leading to personal and professional challenges.
3. Analysis of the Case Study
Organizational Culture & Leadership: Solvay Group's organizational culture, while valuing innovation and global reach, lacks a clear framework for managing international mobility. This results in inconsistent support systems, varying leadership styles across regions, and a lack of standardized processes for expatriate management.
Employee Engagement & Motivation: The case highlights the importance of employee engagement and motivation in successful expatriate assignments. The lack of support systems and the challenges faced by Jean-Pierre and Marie-Claire demonstrate the need for stronger emotional intelligence and cultural sensitivity from both the organization and its leaders.
Cross-Cultural Management & Communication: The case underscores the importance of cross-cultural communication and understanding. The lack of cultural awareness and effective communication strategies contributed to the challenges faced by the Dubois family.
Talent Management & Development: Solvay Group needs to develop a comprehensive talent management strategy for its international workforce. This strategy should include clear career paths, training programs, and opportunities for growth for expatriates.
Organizational Structure & Design: The case highlights the need for a more flexible organizational structure that can effectively manage international mobility. This structure should include dedicated resources for expatriate support, clear lines of communication, and a centralized system for managing international assignments.
4. Recommendations
1. Develop a Comprehensive International Mobility Policy:
- Define clear objectives and goals for international mobility.
- Establish a standardized process for selecting, training, and supporting expatriates.
- Develop a comprehensive pre-departure training program that addresses cultural awareness, language skills, and practical aspects of living abroad.
- Implement a robust support system that includes:
- Cultural immersion programs.
- Mentorship programs.
- Regular communication and feedback mechanisms.
- Access to mental health resources.
- Family support services.
2. Foster a Culture of Diversity and Inclusion:
- Promote cross-cultural understanding and sensitivity through training and awareness programs.
- Create opportunities for employees to interact with colleagues from different cultures.
- Develop a clear policy on diversity and inclusion that is communicated to all employees.
- Ensure that leadership teams reflect the diversity of the organization.
3. Invest in Talent Development:
- Develop clear career paths for expatriates.
- Provide opportunities for professional development and growth.
- Offer language training and cross-cultural communication skills development.
- Create a system for recognizing and rewarding contributions from expatriates.
4. Enhance Communication and Collaboration:
- Implement a centralized communication system for expatriates.
- Encourage regular communication between expatriates and their home offices.
- Develop a framework for managing conflicts and resolving disputes.
- Use technology to facilitate collaboration and communication across borders.
5. Implement a Performance Management System:
- Develop a performance management system that is tailored to the needs of expatriates.
- Provide regular feedback and support to expatriates.
- Recognize and reward successful expatriate assignments.
5. Basis of Recommendations
These recommendations are based on the following:
- Core Competencies and Consistency with Mission: The recommendations align with Solvay Group's mission of being a global leader in the chemical industry. By investing in its international workforce, the company can strengthen its competitive advantage and achieve its growth objectives.
- External Customers and Internal Clients: The recommendations address the needs of both external customers and internal clients. By improving the experience of expatriates, Solvay Group can attract and retain top talent, enhance its global reach, and build stronger relationships with customers in new markets.
- Competitors: The recommendations are informed by best practices in the industry and by the strategies of Solvay Group's competitors. By adopting a more strategic approach to international mobility, Solvay Group can improve its ability to compete for talent and resources in a globalized market.
- Attractiveness - Quantitative Measures: While it is difficult to quantify the impact of these recommendations, they are expected to lead to improved employee retention, increased productivity, and enhanced innovation.
6. Conclusion
By implementing these recommendations, Solvay Group can transform its approach to international mobility, creating a more supportive and inclusive environment for its expatriate employees. This will lead to improved employee engagement, increased productivity, and a stronger global presence for the company.
7. Discussion
Alternatives:
- Outsourcing expatriate management to a third-party provider: This could offer cost savings and expertise but may lead to a loss of control over the process.
- Focusing solely on technical skills and neglecting cultural sensitivity: This could lead to cultural misunderstandings and conflicts, potentially impacting the success of expatriate assignments.
Risks and Key Assumptions:
- Resistance to change: Some employees may resist the implementation of new policies and procedures.
- Cost of implementation: Implementing these recommendations will require significant investment in training, support systems, and technology.
- Cultural differences: Navigating cultural differences effectively is crucial for success.
Options Grid:
| Option | Benefits | Risks | Cost | Implementation Time |
|---|---|---|---|---|
| Implement a Comprehensive International Mobility Policy | Improved employee engagement, increased productivity, stronger global presence | Resistance to change, cost of implementation | High | Medium |
| Outsourcing expatriate management | Cost savings, expertise | Loss of control, potential for cultural misunderstandings | Low | Short |
| Focus solely on technical skills | Reduced training costs | Cultural misunderstandings, conflicts | Low | Short |
8. Next Steps
Timeline:
- Month 1: Form a cross-functional team to develop a comprehensive international mobility policy.
- Month 3: Pilot the new policy with a small group of expatriates.
- Month 6: Roll out the policy to all employees.
- Year 1: Continuously monitor and evaluate the effectiveness of the policy and make adjustments as needed.
By taking these steps, Solvay Group can create a more effective and sustainable approach to international mobility, ensuring the success of its expatriate employees and the company's global ambitions.
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Case Description
Marcel Lorent, head of International Mobility at Brussels-based Solvay Group, faces decisions on the expatriation status of four of his firm's talented executives. Each decision will impact the candidate's professional and personal life, and will have implications for effective management and growth in Solvay's global markets. The case explores these issues, with a close look at Solvay's attempts to develop talent management and mobility processes that allow the firm to align its strategic needs with the complexities of its individual employees' needs and lives.
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