Case study - the case of the floundering expatriate

The Case of the Floundering Expatriate

At exactly 1:40 on a warm, sunny Friday afternoon in July 1995, Frank
Waterhouse, CEO of Argos Diesel, Europe, leaves his office on the top
floor of the Argos Tower, overlooking the Zurichsee. In the grip of a
tension headache, he rides the glass elevator down the outside of the
mirrored building.

To quiet his nerves, he studies his watch. In less than half an hour,
Waterhouse must look on as Bert Donaldson faces the company's European
managers--executives of the parts suppliers that Argos has acquired over
the past two years. Donaldson is supposed to give the keynote address at
this event, part of the second Argos Management Meeting organized by his
training and education department. But late yesterday afternoon, he
phoned Waterhouse to say he didn't think the address would be very good.
Donaldson said he hadn't gotten enough feedback from the various
division heads to put together the presentation he had planned. His
summary of the company's progress wouldn't be what he had hoped.

It's his meeting! Waterhouse thinks, as the elevator moves silently down
to the second floor. How could he not be prepared? Is this really the
man who everyone at corporate headquarters in Detroit thinks is so
fantastic?

Waterhouse remembers his introduction to Donaldson just over a year ago.
Argos International's CEO and chairman, Bill Loun, had phoned Waterhouse
himself to say he was sending the "pick of the litter." He said that
Donaldson had a great international background--that he had been a
professor of American studies in Cairo for five years. Then he had
returned to the States and joined Argos. Donaldson had helped create the
cross-divisional, cross-functional teams that had achieved considerable
cost reductions and quality improvements.

Loun had said that Donaldson was just what Argos Europe needed to create
a seamless European team--to facilitate communication among the
different European parts suppliers that Waterhouse had worked so hard to
acquire. Waterhouse had proved his own strategic skills, his own ability
to close deals, by successfully building a network of companies in
Europe under the Argos umbrella. All the pieces were in place. But for
the newly expanded company to meet its financial goals, the units had to
work together. The managers had to become an integrated team. Donaldson
could help them. Together they would keep the company's share of the
diesel engine and turbine market on the rise.

Waterhouse deserved to get the best help, the CEO had said. Bert
Donaldson was the best. And later, when the numbers proved the plan
successful, Waterhouse could return to the States a hero. (Waterhouse
heard Loun's voice clearly in his head: "I've got my eye on you, Frank.
You know you're in line.")

Waterhouse had been enthusiastic. Donaldson could help him reach the
top. He had met the man several times in Detroit. Donaldson seemed to
have a quick mind, and he was very charismatic.

But that wasn't the Donaldson who had arrived in Zurich in August 1994
with his wife and two daughters. This man didn't seem to be a team
builder--not in this venue. Here his charisma seemed abrasive.

The elevator comes to a stop. Waterhouse steps into the interior of the
building and heads toward the seminar room at the end of the hall.

Waterhouse keeps thinking of his own career. He has spent most of his
time since Donaldson's appointment securing three major government
contracts in Moscow, Ankara, and Warsaw. He has kept the ball rolling,
kept his career on track. It isn't his fault that Donaldson can't handle
this assignment. It isn't his fault that the Germans and the French
still can't agree on a unified sales plan.

His thoughts turn back to Donaldson. It can't be all Bert's fault,
either. Donaldson is a smart man, a good man. His successes in the
States were genuine. And Donaldson is worried about this assignment; it
isn't as though he's just being stubborn. He sounded worried on the
phone. He cares. He knows his job is falling apart and he doesn't know
what to do. What can he return to at Argos in the States if he doesn't
excel here in Europe?

Let Donaldson run with the ball--that's what they said in Detroit. It
isn't working.

Waterhouse reaches the doorway of the seminar room. Ursula Lindt, his
executive assistant, spots him from the other side. Lindt is from a
wealthy local family. Most of the local hires go to her to discuss their
problems. Waterhouse recalls a few of her comments about Donaldson:
Staff morale on the fifth floor is lower than ever; there seems to be a
general malaise. Herr Direktor Donaldson must be having problems at
home. Why else would he work until midnight?

Waterhouse takes a seat in the front row and tries to distract himself
by studying the meeting schedule. "Managing Change and Creating Vision:
Improving Argos with Teamwork" is the title. Donaldson's "vision" for
Argos Europe. Waterhouse sighs. Lindt nears him and, catching his eye,
begins to complain.

"A few of the managers have been making noises about poor organization,"
she says. "And Sauras, the Spanish director, called to complain that the
meeting schedule was too tight." Her litany of problems continues:
"Maurizio, the director in Rome, came up to me this morning and began to
lobby for Donaldson's replacement. He feels that we need someone with a
better understanding of the European environment." Seeing Waterhouse
frown, Lindt backs off. "But he's always stirring up trouble," she says.
"Otherwise, the conference appears to be a success." She sits down next
to Waterhouse and studies her daily planner.

The room slowly fills with whispers and dark hand-tailored suits. Groups
break up and re-form. "Gruss Gott, Heinz, wie geht's?"

"Jacques, ca va bien?" "Bill, good to see you...Great." Waterhouse makes
a perfunctory inspection of the crowd. Why isn't Donaldson in here
schmoozing? He hears a German accent: "Two-ten. Ja ja. Amerikanische
Punktlichkeit." Punctuality. Unlike Donaldson, he knows enough German to
get by.

A signal is given. The chitchat fades with the lights. Waterhouse turns
his gaze to the front as Donaldson strides up to the podium.

Donaldson speaks. "As President Eisenhower once said, 'I have two kinds
of problems, the urgent and the important. The urgent are not important,
and the important are never urgent.'"He laughs, but the rest of the room
is silent save for the sound of paper shuffling.

Donaldson pauses to straighten his notes and then delivers a flat
ten-minute summary of the European companies' organizational structure.
He reviews the basics of the team-building plan he has
developed--something with which all the listeners are already familiar.
He thanks his secretary for her efforts.

Then he turns the meeting over to Waterhouse, who apologizes for not
having been able to give the managers any notice that this session would
be shorter than planned. He assures them that the rest of the schedule
is intact and asks them to take this time as a break before their 4 p.m.
logistics meeting, which will be run by the French division head.

The managers exchange glances, and Waterhouse detects one or two
undisguised smiles. Walking out of the seminar room, he hears someone
say, "At least the meeting didn't run overtime." Waterhouse fumes. He
has put in four years of hard work here in Europe. This is the first
year of his second three-year contract. He is being groomed for a top
management position back in the States. The last thing he needs is a
distraction like this.

He remembers how Detroit reacted when, a little over a month ago, he
raised the issue of Donaldson's failure to adjust. He had written a
careful letter to Bill Loun suggesting that Donaldson's assignment might
be over his head, that the timing wasn't right. The CEO had phoned him
right away. "That's rubbish, Frank," his voice had boomed over the line.
"You've been asking for someone to help make this plan work, and we've
sent you the best we've got. You can't send him back. It's your
call--you have the bottom-line responsibility. But I'm hoping he'll be
part of your inner circle, Frank. I'd give him more time. Make it work.
I'm counting on you."

More time is no longer an option, Waterhouse thinks. But if he fires
Donaldson now or sends him back to Detroit, he loses whatever progress
has been made toward a unified structure. Donaldson has begun to
implement a team-building program; if he leaves, the effort will
collapse. And how could he fire Donaldson, anyway? The guy isn't working
out here, but firing him would destroy his career. Bert doesn't deserve
that.

What's more, the European team program has been touted as a major
initiative, and Waterhouse has allowed himself to be thought of as one
of its drivers. Turning back would reflect badly on him as well.

On the other hand, the way things are going, if Donaldson stays, he may
himself cause the plan to fail. One step forward, two steps back. "I
don't have the time to walk Donaldson through remedial cultural
adjustment," Waterhouse mumbles under his breath.

Donaldson approaches him in the hall. "I sent a multiple-choice survey
to every manager. One of them sent back a rambling six-page essay," he
says. "I sent them in April. I got back only 7 of 40 from the Germans.
Every time I called, it was 'under review.' One of them told me his
people wanted to discuss it--in German. The Portuguese would have
responded if I'd brought it personally."

Waterhouse tells Donaldson he wants to meet with him later. "Five
o'clock. In my office." He turns away abruptly.

Ursula Lindt follows him toward the elevator. "Herr Direktor, did you
hear what Herr Donaldson called Frau Schweri?"

Bettina Schweri, who organizes Donaldson's programs, is essentially his
manager. She speaks five languages fluently and writes three with style.
Lindt and Schweri have known each other since childhood and eat lunch
together every day.

"A secretary," Lindt says, exasperated. "Frau Schweri a secretary?
Simply not to believe."

Back in his office, Waterhouse gets himself a glass of water and two
aspirin. In his mind, he's sitting across from Donaldson ten months
earlier.

"Once I reach a goal," Donaldson says, "I set another one and get to
work. I like to have many things going at once--especially since I have
only two years. I'm going for quick results, Frank. I've even got the
first project lined up. We'll bring in a couple of trainers from the
Consulting Consortium to run that team-skills workshop we talked about."

Waterhouse comes back to the present. That first workshop hadn't gone
too badly--at least he hadn't heard of any problems. But he, Waterhouse,
had not attended. He picks up the phone and places a call to Paul
Janssen, vice president of human resources for Argos Europe. Paul is a
good friend, a trusted colleague. The two men often cross paths at the
health club.

A few seconds later, Janssen's voice booms over the line. "Frank? Why
didn't you just walk down the hall to see me? I haven't seen you at the
club in weeks."

Waterhouse doesn't want to chat. "Donaldson's first training weekend, in
February," he says. "How'd it go? Really."

"Really. Well, overall, not too bad. A few glitches, but nothing too out
of the ordinary for a first run. Bert had some problems with his
assistant. Apparently, Frau Schweri had scheduled the two trainers to
arrive in Zurich two days early to prepare everything, recover from jet
lag, and have dinner at the Baur au Lac. They came the night before. You
can imagine how that upset her. Bert knew about the change but didn't
inform Frau Schweri."

Waterhouse has the distinct impression that Janssen has been waiting for
a chance to talk about this. "Go on," Waterhouse says.

"Well, there were a few problems with the workshops."

"Problems?"

"Well, yes. One of the managers from Norway--Dr. Godal, I believe--asked
many questions during Bert's presentation, and he became rather
irascible."

"Bert?" Waterhouse asked.

"Yes. And one of the two trainers wore a Mickey Mouse sweater--"

"Mickey Mouse?" Waterhouse laughs without meaning to.

"A sweater with a depiction of Mickey Mouse on the front."

"What on earth does that have to do with Bert?"

"Well, Bert offered them a two-year contract after Frau Schweri advised
him not to. He apparently told her he was satisfied with the trainers
and, so far as he was concerned, questions about their personal habits
and clothing weren't worth his time."

"Yes, and--"

"Well, there were complaints--"

"They all went to Frau Schweri?" He is beginning to see.

"One of the managers said the trainers provided too much information; he
felt as though they were condescending to him. A bombardment of
information, he called it. Other managers complained that Bert didn't
provide enough background information. The French managers seemed to
think the meeting was worthwhile. But Bert must think that because his
style works with one group, the others will fall into place
automatically. And everyone was unhappy with the schedule. The trainers
always ran overtime, so everybody was displeased because there weren't
any coffee breaks for people from various offices to network. Oh, and
the last thing? All the name cards had first names and last names--no
titles."

"No titles," Waterhouse says, and lets out a sigh. "Paul, I wish you'd
told me all this earlier."

"I didn't think you needed to hear it, Frank. You've been busy with the
new contracts." They agree to meet at the club later in the week, and
they hang up. Waterhouse stares down at Donaldson's file.

His resume looks perfect. He has a glowing review from the American
University in Cairo. There, Donaldson earned the highest ratings for his
effectiveness, his ease among students from 40 countries, and his sense
of humor. At Argos in the United States, he implemented the
cross-divisional team approach in record time. Donaldson is nothing
short of a miracle worker.

Waterhouse leans back in his swivel-tilter and lets the scuttlebutt on
Donaldson run through his mind. Word is that he's an Arbeitstier. "Work
animal" is the direct, unflattering translation. He never joins the
staff for a leisurely lunch in the canteen, preferring a sandwich in his
office. Word is he can speak some Arabic from his lecturing days in
Cairo but still can't manage a decent "good morning" in Swiss German.
Word is he walks around all day--he says it's management by walking
around--asking for suggestions, ideas, plans, or solutions because he
can't think of any himself.

Waterhouse remembers an early conversation with Donaldson in which he
seemed frustrated. Should he have paid more attention?

"I met with Jakob Hassler, vice president of human resources at Schwyz
Turbines," Donaldson had said, pacing the office. "I wanted some ideas
for the training program. Schwyz is the first company we acquired here;
I wanted to show Hassler that I don't bite. When I opened the door, he
just stood there. I offered him a chair beside the coffee table, told
him to call me Bert. He nodded, so I asked him about his family and the
best place to buy ski boots, and he answered but he acted so aloof. I
took a chair across from him, listened to ten minutes of one-word
answers, and then I finally asked him how things were going in general,
to which he said, 'Everything is normal.' Can you beat that, Frank? I
told him I was interested in his ideas, so he pushed his chair back and
said, 'Please let me know what you expect.' I reminded him that we're
all on the same team, have only two years for major change, gave him a
week to get back to me with a few ideas, and you know what he said? He
said, 'Ja ja.'"

At the time, Donaldson's frustration seemed to stem from the normal
adjustment problems that expatriates face. But he never did adjust. Why
doesn't he just give Hassler what he needs to know and get out?
Waterhouse knows this; why hasn't Donaldson figured it out?

His phone rings--the inside line. It's Ursula Lindt. "Frau Direktor
Donaldson just called. She said Herr Direktor Donaldson was expected
home at 4. I told her you had scheduled a meeting with him for 5." She
waits. Waterhouse senses that there is more to her message. "What else
did she say, Frau Lindt?"

"I inquired after her health, and she said she's near the end of her
rope. Bored without her work. She said they thought Zurich would be a
breeze after Cairo. Then she went into a tirade. She said that they're
having serious problems with their eldest daughter. She'll be in grade
12 at the international school this fall. She's applying to college.
Frau Donaldson said her daughter's recommendations from her British
teachers are so understated that they'd keep her out of the top schools,
and she keeps getting C's because they're using the British grading
scale. She reminded me that this is a girl with a combined SAT score of
over 1350."

Lindt is done. Waterhouse thanks her for the information, then hangs up.
Julie Ann is usually calm, collected. She has made some friends here.
Something must have pushed her over the edge. And their daughter is
engaging, bright. Why is this all coming to a head now?

Waterhouse recalls his most recent meeting with Donaldson, a couple of
days before Donaldson's vacation in May.

"I've tried everything, Frank. I've delegated, I've let them lead, I've
given them pep talks." Waterhouse remembers Donaldson sinking deep into
his chair, his voice flat. "No matter what I do--if I change an agenda,
if I ask them to have a sandwich with me at my desk--someone's always
pissed off. We're talking about streamlining an entire European company
and they're constantly looking at their watches. We run ten minutes
overtime in a meeting and they're shuffling papers. I tell you, Frank,
they're just going to have to join the rest of us in the postindustrial
age, learn to do things the Argos way. I worked wonders in Detroit..."

The clock in Waterhouse's office reads 4:45. What can he do about
Donaldson? Let him blunder along for another year? And take another 12
months of...he closes the door on that thought. Send him back and
forget? Morale on the fifth floor will improve, the Europeans will be
appeased, but with Donaldson will go the training program, such as it
is. Corporate will just think that Waterhouse has forgotten how to play
the American way. They'll think that he mistreated their star. Can he
teach Donaldson cultural awareness? With the Ankara, Moscow, and Warsaw
projects chewing up all his time? You can't teach cultural savvy. No
way.

He hears Donaldson enter the outer office. A hanger clinks on the coat
tree. How can he work this out?

Can Frank Waterhouse help Bert Donaldson become effective in his job?
Should he try?

Five experts examine the pitfalls of expatriate assignments.

Waterhouse should consider becoming the change leader himself or
appointing one of the European executives to do the job.

DOUGLAS A. READY is the executive director of the International
Consortium for Executive Development Research, based in Lexington,
Massachusetts.

Bill Loun, CEO of Argos International, seems to believe that in the end,
the cream will rise to the top. But as this all-too-familiar case

study illustrates, companies that rely on selection alone to develop
leadership talent often run into serious problems. The power of
appointment is not enough. Argos's dilemma is not only about whether
Bert Donaldson is the right person for the job in Zurich. It is also
about the company's entire approach to executive development.

Developing leadership talent--domestic and international--should be a
partnership. It should be an ongoing process between the organization
and the individual. The organization should provide the opportunity
presented by challenging work, the support that ensures that the
individual has a chance to succeed, and the rewards that recognize the
risks the individual takes in his or her quest to accept new challenges.
The individual, for his or her part, must demonstrate the capacity to
grow and develop as well as the awareness of shortcomings and
developmental needs. The individual also must have the desire to change
and to take some risks.

Consider each of those requirements in the case of Argos International
and Bert Donaldson.

Opportunity.

The opportunity available at Argos Diesel, Europe, would be superb if
only the position and the assignment were designed correctly. In a
best-case scenario, the position that Bert Donaldson is filling would be
the nerve center for integrating the managers of Argos's recent key
acquisitions and for building team spirit. It would be the cornerstone
of a companywide effort to build important networks throughout Europe.
With the right parameters, it also could serve as a dynamic classroom
for someone developing the skills needed to excel in an international
setting.

As it stands, however, none of those goals can be realized. First, two
years is not nearly enough time to achieve them. Second, Donaldson is
the wrong person for the job. Under the best of circumstances, even a
well-connected executive from Europe would have trouble knitting the
managers into a team in two years. There is no hope for an ill-prepared
staff specialist from North America.

A more realistic time frame would be three to five years. And a more
suitable candidate for the position would be Frank Waterhouse himself or
one of the European managers. In fact, the job would be an excellent
opportunity for a senior executive at one of the European companies to
climb the Argos ladder.

Donaldson has not earned the right to lead the change process at Argos
Europe. He knows nothing about the European companies' inner workings
and thus has no understanding of what needs to be done to create a
European team. The position does not tap his strengths. Therefore,
although the opportunity is full of promise and learning potential, the
assignment is ill conceived and fatally flawed.

Support.

Research on expatriate assignments has shown that the personal
development process before, during, and after an assignment is
essential. There is no indication, however, that Argos has given careful
thought to the matter. Perhaps Loun and the other people responsible for
Donaldson's appointment thought that five years of teaching in Cairo was
adequate preparation for this strategically important and tension-filled
challenge. Perhaps they thought that the Cairo experience was a good
start and that Donaldson had great potential to become a global manager.
Whatever their reasoning, they did not prepare Donaldson and his family
sufficiently for the move. At the very least, they should have
introduced them into the social fabric of Argos Europe. The company
should have arranged a series of informal meetings between the Donaldson
family and other Argos families living in the region.

And what about Julie Ann Donaldson's career? She seems to be at loose
ends. Could Argos have helped her find some rewarding professional
activity or offered her some meaningful work? The issue of family
adjustment is a sleeper in this case, but it often is the main reason an
international assignment fails.

These issues are only part of the problem, however. Why doesn't
Donaldson communicate with his base of operations in the States? It
seems as if the company has cut him off from his own professional
support network. Like many expatriates, he runs the risk of being out of
sight and out of mind.

Rewards.

Because this assignment has apparently been described as a means of
getting his ticket punched, Donaldson seems to be viewing the reward for
the job as getting back home as quickly as possible. If that is indeed
the prize, the problems will continue because success is clearly not
possible within two years.

Capacity.

Accounts of Donaldson's performance in implementing the cross-divisional
and cross-functional teams in the States indicate that he is a capable
professional. But the transnational and multicultural challenges of this
assignment make it far more complex than any he has faced to date.
Donaldson may be failing in Europe simply because his superiors didn't
explain the new dimensions of leadership that this position would
require and didn't develop a plan for him to learn them.

Awareness.

One of the most troubling aspects of Donaldson's profile is that he
seems unaware of how ill prepared he is to take on this challenge. A
central component of growth and development is being open to feedback
that will help improve performance. Donaldson seems interested in
changing everyone but himself. Unless he recognizes that he has a lot to
learn from his colleagues, he will surely fail.

Desire.

Donaldson spent five years in Cairo and was willing to take this
assignment in Zurich, so we know that he has the desire to work abroad.
But does he have the desire to change and to develop the skills he needs
to be successful in his new role? The case suggests that he will require
some prodding.

What should be done? Over the short term, Waterhouse must confront
Donaldson honestly with his concerns. He should indicate that he doesn't
see why Argos posted Donaldson for a two-year assignment and should get
Donaldson to agree that two years is not enough time in which to create
a European team. He also should discuss with Donaldson how the position
might be altered to better fit the task at hand.

Waterhouse should consider becoming the change leader himself or
appointing one of the European executives to do the job. He could then
make Donaldson a consultant to the change process, thus placing him in
an area in which he has considerable expertise. As a consultant,
Donaldson would be able to add value and to gain exposure to a more
complex setting without substantive risk. Waterhouse also might offer
Donaldson the opportunity of shadowing him as he completes his projects
in Ankara, Moscow, and Warsaw. These moves would create a more sensible
career path for Donaldson for the next few years.

Over the longer term, if Loun is truly committed to going global, he
must make some fundamental changes in the Argos approach to career
development. All parties have a lot to lose if the current trends
continue. If Donaldson stumbles along his career path, he might well
derail, and the derailment of high-profile talent will not go unnoticed
in other parts of the organization. If he fails, it's less likely that
another high-potential candidate will take an international assignment
in the near future. Argos will need to do a better job of assessing its
highpotential talent and matching it with carefully crafted assignments.
The company must develop a measured, thoughtful learning plan for its
worldwide operations. SECTION HEADING: The evidence indicates that
Waterhouse is too narcissistic to recognize his own contribution to the
problem. SECTION HEADING: SUSAN SCHNEIDER is an associate professor of
organizational behavior at INSEAD in Fontainebleau, France. She has
recently completed a book with J.L. Barsoux on cross-cultural
management, which will be published by Harvard Business School Press.

There are a number of things that Waterhouse could do to resolve this
dilemma. Indeed, there are many things he should have done to prevent
it. But the evidence indicates that he is too narcissistic to recognize
his own contribution to the problem. His only concern is how Donaldson's
performance reflects on his own image. What's more, the company's
culture--created and supported by Bill Loun--is not helping Waterhouse
face the real challenges of managing internationally. The Argos culture
is results oriented, not people oriented. Moreover, the "no bad news"
and "make it work" style of management has created the problem and is
now exacerbating it. No one at the company seems to realize that this
culture is a potential threat to internationalization. For those
reasons, my comments are directed toward Donaldson. He has to ring the
alarm.

Bert, you must take the time to consider your own performance
objectively. First, admit to yourself that you blew it with this
meeting. Your goal- and task-oriented style, which has brought you
success in the past, is not enough in this international context. In
Europe, people skills are crucial. Try to confront your frustration and
use it as a trigger for learning.

When you see Waterhouse at 5 p.m., share your frustration while letting
him know that you want the project to succeed and that you're committed
to putting in the time and effort to make it happen. Tell him you'd like
his help in refining your strategic plan to create a unified European
team.

Then contact Paul Janssen, Argos Europe's vice president of human
resources. He can help you understand better how to get your plan across
and how to be more effective in your assignment. But youll have to tell
him what you need. To date, Janssen also has been part of the problem at
Argos Europe because he hasn't given people feedback and information. So
don't expect him just to offer it. Make the first move and keep asking
for more.

Look for assistance from Frau Schweri as well. With her experience and
knowledge of Europe and the local environment, she can help you
understand how best to communicate your plan and manage cultural
differences. Also, admit to yourself that if Frau Schweri were a man,
you probably never would have mistaken her for a secretary in the first
place. Start to behave in ways that show her that you respect her
position and value her assistance. You need to develop a real working
relationship with her.

Visit each country's manager individually, present the plan you have
developed, and ask for comments and suggestions. If the managers want to
speak German, take Frau Schweri along to interpret. After all, she
speaks several languages. If they want to know what you expect of them,
offer your ideas. Then ask for their opinions. Look for information that
could help you to help them in their current assignments. Ask questions
and listen to their problems. Look for information that is not being
communicated.

Don't assume that the Argos way is always right and that the local
companies have nothing to offer. Recognize that these are acquisitions
and that these executives have managed their own companies until now
(for better or for worse). They should be respected for their
competencies and knowledge. Comments such as "They're just going to have
to join the rest of us in the postindustrial age, learn to do things the
Argos way" are condescending and unjustified. No wonder "someone's
always pissed off." That kind of attitude is the kiss of death in
foreign assignments.

Another way of getting information is through informal social
interaction. You should join the local staff for lunch on occasion and
chat informally with others before larger gatherings. (Note that
Waterhouse pointed out the importance of such interaction but also
failed to initiate informal conversation with anyone before the
meeting.) Such socializing also helps to build up personal contacts.
Understand, however, that personal does not necessarily mean friendly.
In Europe, work life and family or personal life often remain separate.
Personal relationships may eventually be built through good working
relationships, but trying to establish them immediately may be viewed as
intrusive and presumptuous, if not phony.

Keep in mind that although you were recruited because you have
international experience, Cairo is not Zurich, teaching at an American
university is not the same as running a European acquisition, and
managing students is not the same as managing managers. How could you
think that a multiple-choice survey would yield substantive feedback for
a change-management plan? Surely this isn't the kind of maneuver that
helped you excel in the States.

Think about what being a manager means in different contexts, and try to
learn that the attributes of a good manager in the United States are not
necessarily appreciated elsewhere. In the United States, people are
valued for selling their ideas (and themselves), coming on strong (being
aggressive and dynamic, or assertive), and being quick on their feet. In
your current position, however, those attributes are likely to be seen
as abrasive and impulsive. "Having a quick mind" may imply that one is
not sufficiently thorough and analytical. And managing by walking around
just won't work in Zurich; it's likely to be seen as inefficient and
purposeless.

Remember that you are not dealing with one foreign culture; you are
dealing with several. In Germanic cultures, for instance, managers are
valued for technical competence--for managing tasks. In Latin cultures,
more emphasis is placed on a person's ability to build relationships--on
managing people. You won't be able to please everyone in every
situation, but at least if you're aware of the different attitudes and
styles, you may be able to navigate more effectively.

Consider the meetings you have directed. Managers from Germanic cultures
are likely to complain about lack of structure in meetings and
presentations, describing it as poor organization. Being on time and
following the schedule are considered very important; any changes should
be announced. Latin Europeans, on the other hand, may be amused if not
annoyed by such a systematic approach. They may find it constraining and
feel that there is not enough room for spontaneity and creativity, or
enough time to build rapport. Use these differences to create
synergy--to get the best from each culture. Try to find a balance; be
systematic while allowing for flexibility. Find ways to be both task
oriented and people oriented. At meetings, acknowledge the differences
among the managers and ask for their solutions.

As for the meeting that opened the case, your comment on Eisenhower not
only was a very American reference but also alluded to World War II--a
subject that you could have avoided. And in the "joke," you admitted
that you're unable to distinguish what's urgent from what's important.
In the eyes of your subordinates, you should be able to establish
priorities. That comment also may have given the impression that you're
in a hurry to accomplish your own career goals and are not concerned
about the goals and needs of the local businesses.

Also, you never should have turned the meeting over to Waterhouse unless
there was a clear reason to do so. What was he doing there? What was his
added value? His apology served only to add insult to injury.

You have been described as a "work animal." In European cultures, where
family values are very important, that is not a compliment. Working late
at night is interpreted as a sign that one has family problems and
therefore does not want to go home. Europeans may very well have a
better balance between work and family than Americans do. You should be
worrying just as much about your family's success as about your career.
After all, it's easier to get another job than another family. Give it
some thought. It's something to learn from the local cultures.

You might want to ask Janssen for information about your daughter's
schooling. Find out what the options are--how other expatriates have
handled the problem. Janssen also may be able to assist you in thinking
through how to make this time in Zurich a more enriching experience for
your wife. You also should ask Frau Schweri for ideas.

All told, you have a good deal to learn in a very short time. From
formal dress codes to formal titles, the cultures you are working in are
vastly different from the one you're accustomed to. The more you
understand how these differences influence the practice of management,
the better equipped you will be to anticipate and respond effectively.
And you need to transfer your new knowledge back to Argos. By learning
to manage more effectively in an international context, you'll recognize
what your company needs in order to become a global player. You must
help Argos become more international. Since Bill Loun thinks you can do
no wrong, maybe the company will listen.

If you fail, you'll be setting a precedent for other Argos managers.
Your experience will send a negative message regarding expatriation and
career progress throughout the company. Highly qualified candidates and
highfliers (like yourself) will be less motivated to be posted abroad,
despite company rhetoric that foreign assignment and international
experience are important for advancement. Argos has much to lose if you
fail and a lot more to gain if you succeed. SECTION HEADING: Donaldson
should be returned to the United States immediately. Argos needs a local
European to unite the acquired companies. SECTION HEADING: BJORN
JOHANSSON is chairman and CEO of Dr. Bjorn Johansson Associates,
executive search consultants, in Zurich.

Donaldson should be returned to the United States immediately. There is
no way that retaining him in Zurich will help either him or the company.
"Besser ein Ende mit Schrecken als ein Schrecken ohne Ende." Better a
calamitous end than an endless calamity.

Officially, the explanation can be "family reasons." It's clear that
Donaldson is facing serious family problems. His wife has not succeeded
in integrating herself into the Zurich environment, and their eldest
daughter is having problems at school. Using those issues as a cover, he
can be returned to the States with his dignity intact.

After all, he deserves decent treatment. He is in Zurich because Loun
has pushed him there, even though neither his background as an academic
in Egypt nor his experience in cross-divisional and cross-functional
team building in the United States qualifies him for this job. He has no
experience living and working in Europe. Apart from English, he speaks
no European languages. He has no experience gluing a group of companies
and their various management organizations together. And his actions
indicate that he is not a good listener or communicator. It is not
really a surprise that, within nine months, Donaldson has become
frustrated and unhappy, and has lost respect and credibility not only
with Waterhouse but also with all his local staff in Zurich and most of
the European managers.

Waterhouse should make a thoughtful but decisive settlement. In his
meeting with Donaldson, he should focus on his family situation. He
should suggest the idea of returning to the United States and thus
solving his family issues. He should tell Donaldson candidly that, after
considerable thought, he has decided that Argos needs a local European
to unite the acquired companies. He might mention the possibility that
exciting challenges will open up for Donaldson back in the States. He
should help him view this experience as a learning process so that he
will return to the States with a positive outlook and not think of his
time in Europe as wasted.

Then Waterhouse should get on the phone with Loun and sell him the
situation. Waterhouse has a record of success in Europe. He also has
credibility with the CEO. Clearly, Argos can't afford to lose Waterhouse
at this stage, and his decision and recommendation will be in the best
interests of the company and its shareholders. His message can be,
"What's needed here is action, and I will guarantee that positive
results will follow." Loun will listen; he really has no choice. And,
because Loun thinks highly of Donaldson, he'll try to find a good
opportunity for him back in Detroit.

After Loun has approved the action and Waterhouse has informed
Donaldson, Waterhouse should call a staff meeting with all the relevant
executives at the Zurich office to tell them about the changes. Then he
should inform all the European general managers and key staff of the
decision. After that, he should launch a search for Donaldson's
successor, possibly with the help of an executive search consultant who
has inter-European experience and a good understanding of U.S. corporate
environments. The ideal candidate probably would be from Scandinavia,
Switzerland, Belgium, Luxembourg, or the Netherlands. (People from these
countries are generally perceived as being neutral; as a rule, they are
accustomed to dealing with multinational situations, and they usually
speak many languages.) He or she will have sales and marketing
knowledge, strategic planning skills, and some experience in merging
different companies and corporate cultures. A search will probably take
two to three months, during which Waterhouse will have to fill the gap
himself with the help of human resources director Paul Janssen and
Donaldson's former assistant, Bettina Schweri.

When a new team builder has been hired, that person should spend several
weeks at Argos's headquarters in Detroit to get a comprehensive
introduction to the Argos company culture and the vision of senior U.S.
management. And, upon joining Argos Europe, that person should be
closely coached by Waterhouse. Waterhouse should not turn the job over
completely for several months. He also should establish clear goals and
objectives for Donaldson's successor so that his or her achievements can
be measured.

Argos must give its U.S. expatriates much more support and cultural
guidance. Only by learning from this experience will the company avoid
another similar problem in a future assignment. SECTION HEADING:
Technologies can be copied quickly. Intercultural competence cannot be
copied; it must be learned. SECTION HEADING: FONS TROMPENAARS is the
managing director of the Centre for International Business Studies in
Amstelveen, the Netherlands. He also is the author of Riding the Waves
of Culture (London: The Economist Books, 1993) and coauthor, with
Charles Hampden-Turner, of The Seven Cultures of Capitalism
(Currency/Doubleday, 1993).

What worries me most about this case is not what Donaldson has done;
it's what Waterhouse has failed to do. A good deal of the never-ending
misery in this realistic soap

opera is due to Waterhouse's incompetence, not Donaldson's. And even
though the case is full of stereotypes, it does highlight many of the
mistakes that U.S. managers commonly make when managing in Europe.

Some of those mistakes are rooted in a misunderstanding of the
challenges involved. For example, Waterhouse doesn't seem to realize
that creating a unified European team means more than helping a group of
people adjust from one business model to another. There is no single
European model. In fact, there appear to be several business models in
use among Argos's recent acquisitions. This means that Argos must manage
organizational and behavioral change on several different levels.
Waterhouse should have recognized this long ago and made sure that Bill
Loun understood it, too, before naming Donaldson as chief team builder.

One of the dominant European models resembles a family, combining
personal, face-to-face relationships with hierarchical relationships.
This model tends to operate using a web of informal channels of
information. Ursula Lindt is a good example of someone accustomed to
this kind of culture. She has tried several times, in subtle ways, to
tell Waterhouse about the problems Donaldson is having. When she asks
Waterhouse if he heard Donaldson call Schweri a secretary, she is trying
to tell him that Donaldson is violating a cultural code. Waterhouse
doesn't even seem to hear her.

Another dominant European model is very rational and ordered. In it,
tasks and functions are precisely laid out, there is a rigid division of
labor, and people adhere to procedure. In this model, power comes from
position, function, and role. Image is very important. If Waterhouse
understands this model, he has not passed along his knowledge to
Donaldson. Donaldson violated a cultural code when he allowed his
trainer to conduct a meeting wearing a Mickey Mouse sweater. What's
more, he signaled to all present that his own job was not to be taken
seriously when he began his keynote address with a joke. Why hasn't
Waterhouse brought him up to speed on all this? Contrary to Waterhouse's
complaint at the end of the case, cultural savvy can be taught. He has
made no attempt to teach it.

Frankly, I doubt that Argos can create an integrated team of European
managers by conducting a series of training seminars anyway. The Spanish
director's complaint about the tight schedule is probably an implicit
objection to the whole process. If it is, I agree. The process is
insensitive and destined to fail.

Sure, European businesses manage by objectives, pay for performance, and
reengineer their organizations. They even send out questionnaires. But
when U.S. CEOs set out to do those things in a European environment,
they too often send people who are experts at the task but not in the
context. They ignore the process issues that require a deep
understanding of local cultural differences. Or they appoint people who
cannot command the respect needed to accomplish the task.

In this case, it's clear that Loun has made those mistakes. If the job
truly is important--if it isn't just a side dish--then Argos should
convey that to the European managers. Waterhouse should manage the
team-building process himself. And if Waterhouse is going to have an
assistant team builder, it should be someone who is not only well versed
in teams but also knowledgeable about all the cross-cultural issues that
might arise. The fact that Donaldson has had some experience in Cairo
does not make him an internationally experienced manager.

I would advise Loun and Waterhouse to remove Donaldson from his job as
soon as possible. As I've said, cultural sensitivity can be taught, but
it's not something that can be learned overnight. It must start with
good communication skills and a creative attitude that is based on
respect of the foreign culture. And it requires time and continuous
feedback. Donaldson doesn't seem to have the creative attitude, and he
certainly doesn't have the time. Too much damage has been done.

What's more, keeping Donaldson on just for the sake of his career would
be too costly for the company and for his family. What's tricky is how
to manage the recall without too much damage. One option would be to
cite family circumstances. It's well known that most expatriate
assignments that fail do so because of family circumstances. The excuse
might be a good way for Donaldson to return to the States with a limited
loss of face. And, although it isn't explored in detail in the case, it
might be a legitimate excuse as well.

Beyond that, Waterhouse should take the driver's seat in the
team-building process. He might consider hiring a facilitator in
intercultural communications to help him out. He also should take
advantage of the cultural backgrounds of Argos Europe's executives by
having them conduct workshops on cross-business relationships. It's
amazing what can be achieved when one makes a business issue out of
intercultural experiences. Increasingly, international managers realize
that they can gain competitive advantage by understanding cultural
differences. Technologies can be copied quickly. Intercultural
competence cannot be copied; it must be learned. SECTION HEADING: Right
now, Donaldson and his department are the only ones responsible for
"teamwork." That won't work. SECTION HEADING: ROMAN BORBOA is a
counseling and environmental psychologist who works with individuals and
organizations in Zurich. He also is a faculty member and lecturer at
City University in Zurich.

Argos needs to do three things to solve the immediate problem at Argos
Europe and to ensure that the company does not make the same mistakes
again as it grows into an international organization: (1) Identify
specific goals for the European team and set up a formal appraisal
system to monitor its progress; (2) provide Donaldson with
cross-cultural coaching and mentoring and, in the process, institute a
formal cross-cultural training program for all expatriate executives;
and (3) provide cross-cultural training for Donaldson's family and, in
the process, set up a formal cross-cultural training program for all
Argos families in similar circumstances.

The European Team.

Argos Europe is focusing on results. The company has set specific sales
and manufacturing goals, and Waterhouse is determined to achieve them.
Donaldson has been brought in to implement a process linking Argos
Europe's vision and values through teamwork. Yet neither Donaldson nor
Waterhouse seems to have any idea of how the various parts of the
company are actually going to conduct business in Europe. Right now, it
seems as if Argos is telling everyone to be a team but not giving anyone
a chance to do so. The individual units are still operating as separate
entities. Even if the ultimate goals are clear, a team cannot be built
around vague directives.

If Argos truly intends to build a team in Europe, Waterhouse must figure
out what he wants the structure of the unified company to be, and inform
all relevant parties. Then he must give his team common tasks with
measurable results; he must make the various managers equally
responsible for the success of one project, then another, then another.
For example, he could have a group of managers work on creating a common
distribution system. Or he could ask the marketing executives from each
acquired company to work together to create a common advertising
platform. He should seek input from the European managers about
reasonable goals and procedures, and from Donaldson on how to facilitate
the change process. The managers themselves, with his guidance, can then
create a suitable appraisal system to monitor and evaluate ongoing work.

In other words, Waterhouse must make sure each manager is committed to
the success of the endeavor--to the success of Argos Europe. Right now,
Donaldson and his department are the only ones responsible for
"teamwork." That won't work. Creating a real team requires shared
responsibilities. When projects are successfully completed, there will
be a shared sense of fulfillment.

Donaldson's Training.

A considerable number of managers in foreign assignments fail because of
poor performance and an inability to adjust to the foreign environment.
Waterhouse should make sure that Donaldson receives training not only in
language and cultural sensitivity but also in the history and economic
structure of the country in which he now lives.

Understanding events that have shaped cultural and organizational
behavior in a country can help a foreigner adjust more quickly. Such
knowledge also will help Donaldson understand that in Europe, most
organizations and large communities are culturally heterogeneous. He
will learn, without resorting to stereotypes, that there are certain
cultural tendencies he can expect. He also will learn how European
managers balance the various behavioral differences, and he will begin
to do it himself.

For the company, Donaldson's training will provide the foundation for an
international executive development program. Argos should learn, and
benefit, from his difficult experience.

Of course, in this case, Waterhouse has some additional work to do
regarding Donaldson. Donaldson's job is ill defined, and he has gotten
off to a bad start.

Waterhouse needs to define his expectations of Donaldson more clearly.
Donaldson needs to understand what his position is and what his
responsibilities are in both the current assignment and the organization
as a whole. How much authority does he really have? Surely, Waterhouse
and Loun expect him to be more than a cheerleader, but if that is the
case, they must establish specific objectives for Donaldson's
assignment. Moreover, they must articulate what this experience will
mean for his career development.

Once Waterhouse has established those parameters, he should see that
Donaldson gets a local trainer--a coach--to spend time with him on the
job and show him how to cope with the new situations and experiences.
(This is in addition to the cross-cultural training.) Then he should
send Donaldson out to visit the different suppliers and their units.
These can be fact-finding trips to acquaint Donaldson and the European
managers, remove fear from both sides, and destroy the European
managers' perception that Argos headquarters has the head-office
syndrome: We know best. The trips also will help Donaldson understand
the difference between the European countries and Egypt. Donaldson
should continue to pursue his team-building vision, but he must learn
that he can't run the project on his terms alone.

Family Training.

Start at the beginning: language. Language barriers create frustration
at a very basic level, but they also create deeper misunderstandings
that can be difficult to unravel. An inability to understand the nuances
of a local language can affect the way a person views the culture as a
whole. He or she may inadvertently resort to stereotypes and selective
perception, which makes it even harder to adjust.

Reduced to its essentials, cross-cultural training aims to help people
be productive and feel comfortable in unfamiliar surroundings. If
Donaldson's family gets such training, it will be more supportive and
his home life will be that much more stable. The whole situation will
then be easier to handle.

I have worked in various companies that have had difficulties similar to
the ones faced by Argos. When a company hasn't adequately prepared its
executives for foreign assignments and a situation has gotten out of
control, as this one has, it can be difficult to backpedal. This dilemma
can be resolved, but Waterhouse must not wait any longer to take action.