Time to tune in
Latin American companies turn up the volume on global growth
Insights and recommendations: Talent
The ability to place the right managers in the right target market or country will be a key challenge for Latin American companies. The need to develop the right blend of skills at home to manage the extended operation also remains.
Watch for a possible shift in methods of sourcing talent
Most of our respondents are confident that they manage their talent effectively across all their markets and that their senior managers have enough international work experience. But they also emphasize that in order to succeed internationally, they will need corporate boards that are more representative of global markets (55%) and will need to recruit talent locally (37%).
This could present significant opportunities for global and mature-market companies to provide the international outlook and diverse leadership perspectives essential to take an international expansion strategy forward.
Still, they shouldn’t expect to do much poaching: in Mexico, for instance, executives tend to be very loyal to their company and to see their own efforts as part of a larger national program to make their country strong, according to EY’s Tiburcio.
Understand the importance of corporate culture
Cultural compatibility is a key issue for many of the Latin multinationals, which tend to replicate their corporate culture in the markets into which they expand. Many executives we surveyed believe that their top management team needs greater knowledge of global markets (60%) and local culture and ways of doing business (44%).
Further, the cultural differences between Latin America and the mature markets should be understood to effectively partner or do business with companies from these regions. Global businesses will need to familiarize themselves with the varying ways of doing business across Latin America and understand how this relates to their own corporate culture or the integration of potential partnerships.
Some foreign companies with far-ranging international operations may find opportunities as go-betweens, acting as the cultural glue between two markets that might otherwise have a hard time understanding each other.