The challenge really is that leaders often dont hire Chinese talent in key positions because they dont want to go out of their comfort zone. They feel that hiring local talent is only a cost play and that for real effectiveness you still need expats. It is this mindset that has to be changed.

Leaders need to be coached so they are able to reframe their perspectives and change their behaviors so they can take the right actions that will deliver the right outcomes. Creating a culture that is ‘Chinese’ friendly requires the courage of conviction from leaders who are willing to sacrifice the short term for the longer term vision of the company. But once again the challenge is that most leaders arrive for short stints as expats and dont want to rock the boat before they head out to another assignment. One of the key metrics of the leader therefore should be the ability to fill key jobs with local talent. Assigning them with coaches who can work with them as they implement this strategy is an investment that will yield high returns.

It is a dilemma whether a multinational company should localize or globalize its compensation for the local managers. If they pay them based on global standards, a higher cost will emerge. If not, it would be difficult to retain them. Just as the speaker said, it will lead to a sense of unfairness. Why should I get two or three times less compensated even I deliver a better performance than the foreigners?

Mr. Hemmerle has many great suggestions, but I wonder how his recommendation to create opportunities for career advancement can be implemented, given the rigid corporate hierarchy and culture in East Asian countries. For example, how can objective career advancement happen in light of China’s guanxi (relationship) culture? In efforts of localization, do global consulting firms have no choice but to succumb to local hiring practices, or can talent recruitment tactics such as those recommended by Mr. Hemmerle be truly enforced?

The recommendations are valid across cultures and countries. In a way it was heartening to hear that. It reconfirms that humans are same across the world and the human expectations and issues are the same as well. What it does mean is that the human principles that need to be applied will be the same even though they would need to be adapted to that context.

It’s a very useful interview. Emmanuel Hemmerle provides us important scenarios on China’s talent war. Nevertheless, as executive staffing group competencies have become a key driver of competitive advantage, I worry about lacking emphasis on demands on sustainability, governance, and strategy skills.