Tag Archives: ROI

According to Brookfield (2016) 95% of companies do not measure their Global Mobility Return on Investment.

“Given the inordinate amount of cost pressure on mobility today, it is somewhat surprising that more companies do not seem to have basic cost management practices in place. Only 62% of respondents indicated that they track costs during an assignment, and even fewer noted that a cost-benefit analysis is required at the outset of an assignment. With barely two-thirds of companies actually tracking the basic and most transparent part of their investment in assignments – their cost, it is not surprising that 95% of companies do not measure international assignment ROI.” 

This research is from 2016 and I bet if we had an updated version we would come to the same conclusion. When I speak to Global Mobility Professionals about ROI they usually roll their eyes and tell me all the reasons why it is impossible to measure Global Mobility Return on Investment in their company.

Over the last two months, I also read “Managing Expatriates – A Return on Investment Approach” by McNulty and Inkson (2013). It’s a great book, slightly academic but has really good ideas about what we can improve in Global Mobility. The authors suggest a new model and approach for expatriate ROI. I like their approach because they build on five core principles. (If you are short on time focus on Chapter 9 of the book).

As the authors state previous data based on repatriation turnover, assignment failure, assignment success and job performance were not consistently measured. To date, I often have doubts about statistics, traffic light systems, and metrics. Mainly, because I know that the data behind is often incomplete and stats are too often used to manipulate decision makers in HR and the line. This is because these decision makers are usually men in their 50ies, analytical thinkers, who need numbers to justify their gut feeling. If you have worked in an industry for 20 years, you know why you lose your best talent. You know that you have disappointed your female potential. You know that you are not doing enough for minorities. BUT without stats, you don’t see the need to change. Without suffering (as in losing clients, money, baseline) you don’t question the status quo.

Measuring international assignment ROI is easier said than done. The issue is not only about data quality and integrity. The main issue in my view is the lack of collaboration between line managers and Global Mobility Professionals. We can continue to discuss return on investment in Global Mobility for the next 10 years or we can adopt McNulty and Inksons five core principles.

We can continue looking for the magic potion that will make us look like the next CFO. (I’m thinking of Asterix as I write this. There should be an “Asterix with the GM Professionals…”).

Here are four reasons why I think we are not going to achieve a good measurement of return on investment in Global Mobility.

1) No clear assignment targets

If you want to measure ROI you need to have clear and measurable international assignment targets. Usually, assignment targets are blurry, hard to measure or non-existent. In order to determine ROI, a mix of operational indicators would need to be measured regularly. Examples include performance on assignment, repatriate retention, business volume driven by expats. We could measure savings and improvements through knowledge transfer, risk reduction, staffing stability and culture transfer from headquarter to other areas of the organization.

Most of these targets need to be transformed into measurable Key Performance Indicators. They would need to integrate into management information systems. And, we would need to have a clear understanding of what is actually expected of our expats around the world. Often this is not the case and evolves only during the assignment.

2) Flaws in the business case bring down Global Mobility Return on Investment

There should be a business case behind every international assignment and every kind of Global Mobility. Surprise…This is not self-understood.

Many companies have a hard time even differentiating between a developmental assignment and a strategic assignment. Often international assignments are not really thought through. Assignees are sent to “fill a gap”, “to accelerate a process”, “to drive more sales” and “to make them there do everything the way we do it here.” Ever heard this before?

We often do not fully understand the situation on the ground, in the host country until we have been there and done the work ourselves. Many home managers are completely oblivious to intercultural differences, the importance of local business relationships and the importance of the host language. Too often expats need a lot longer than expected to work through the intercultural transition phase, deal with family issues during the move and settling in phase and often expats overestimate their capabilities.

3) Decision makers and Global Mobility Professionals do not collaborate yet

Most managers think of “HR” as troublemakers, cost producers, and list tickers. Instead of asking Global Mobility Professionals for support in defining assignment targets and setting up a business case, they see them as the “admin, who will make it happen when I have decided”. This is a historical drama and Global Mobility Professionals have not managed to show their value to the line managers when they have taken on the role of the “Policy Police” in the past.

Managers do not involve Global Mobility Professionals because they do not think that they will get any good input from them. This process requires relationship and trust building from both ends. Line managers need to learn to trust in the Global Mobility Professional and ask them for support in defining the international assignment business case. If there is no business case or if it is not justifiable, it might be possible to consider a permanent transfer or alternative options.

4) We do not add to Global Mobility Return on Investment by focussing on bean counting

We need to stop bean counting in Global Mobility and start adding real value by supporting the talents and leaders of the company get their job done as quickly and effectively as possible. We should learn to trust expats in their decisions about budget and costs, give them a good shelve of benefits to chose from and have excellent and agile service providers available to us 24/7. We should not turn pennies around while in other parts of the company money is wasted. We should focus on what really matters and that is that we bring back the human touch into Global Mobility.

 

Angie Weinberger

PS: Sign up here to receive updates on the publication date of “The Global Mobility Workbook (Third Edition)”. Launch is scheduled for 7 October 2019 on Amazon globally.

 

 

 

Culture beats structure!

GPTSocialMediaGuest Post by Nabeha Latif

People often don’t understand what I do when I say I am social media engagement specialist. They think that it is only about posting on Facebook and Twitter but why will anyone need to hire someone to do that? What type of job is it?

Let’s explore what is social media to business and why is it important for success in this age. Guess what business owners are using right now to connect with clients? Yup. Social media!

When we googled the question “Will social media help me?” we were greeted with 1.6 billion suggestions. Had we added the word ‘business’ to it, they would still be few millions. Many of those will be repeating the same thing. Still it’s clear that getting started on social media is a question that business owners are looking for an answer to. Facebook campaigns, blog posts, news articles, corporate videos and more – again, everyone is looking to find the right way to do the social media.

What is the secret ingredient?

If you ask me, the secret is simple: You might want to start right away just like everything else that you do in your business. It is helpful to have a plan with measurable milestones and results. I was always amused by the idea of connecting with so many people virtually. I got more and more interested, every time I explored a new aspect of social media. I have a hobby to try new networks which I come across, just to study new ways of spreading virtual messages. Not kidding! Now being a social media engagement specialist, I know it’s not a myth or exaggeration that your social presence online is a representative of your company.

It was a challenge for me to make others understand that posting JUST anything on social media isn’t social media marketing.   You need to be specific to attract right kind of people. You can’t afford to say ‘what’s in your mind’ without thinking. It should be what others want to read because people will judge you accordingly!

Step 1: Why should your business want to be on Social Media? > Define your Social Media purpose

From having discussions with clients to monitoring conversations online, the overarching theme that prevents businesses from using social media is lack of understanding about why they NEED to be here! The typical responses we get include, “Our competitors are here,” “Because everyone’s talking about it”, “We want to be on everywhere.” The problem is that they fail to dig deep into bigger questions they need to answer:

  • What are your competitors doing on social media?
  • How can you differentiate yourself from the competitors with social media?
  • Will you be able to identify impact it will be have on your business?
  • Will you measure increased awareness, number of new leads through social media, heightened participation of potential clients and will you find out if it changes your bottom line?
  • Are you reaching your target audience?
  • Have you identified who that is?
  • Will you enjoy working with social media or is it just an extra chore for you?

Being able to answer these will allow you to move to next step.

Step 2: Where do you need to be? > Determine your Social Media channels

There are literally hundreds of social networks online along with power hitters Facebook, Twitter, Google+ and LinkedIn. Not to forget the forums, niche networks, community blog networks and more. No wonder so many businesses have trouble spotting the right path.

  • Define your market segment – Where is your target market in social networks? Are the business professionals on LinkedIn or every day users on Facebook?
  • Who do you want to be connected with? – Unless you are selling coke or pampers, you don’t need mass audience! Be specific. The closer you stick with your offerings, the fewer followers you will attract. But they will be delighted to connect with you.
  • Stick with maximum 3 to 4 networks – Work only with a number of networks than you can consistently maintain. Only if you can add meaningful content publish your business page on that network.

Step 3: How do you measure success= > Map out goals and success metrics

Try to define your goals and measure the success of your social media use. What do you want to achieve out of it? Quantitatively measure your efforts in terms of Likes/Follower growth or increase in frequency of engagement or brand mentions or amount of content to be shared etc.

  • Set up a calendar – Set up a social media calendar and break it down into results pattern like monthly, quarterly, biannually, annually .
  • Analyse results periodically – Study the difference in website traffic. Does traffic increase and which channels bring more traffic. Google Analytics will do the job!
  • Determine acceptable growth vs. ideal growth – Compare if you are at least reaching the former i.e. minimum growth you expected to achieve through social media. And how far behind are you lagging from ideal growth? An indicator could be your turnover that is generated through Social Media or leads you receive through referrals on Social Media (email does not count!).
  • Analyse the cost of implementation – Compare cost of implementation to the expected return (increased customer loyalty, word of mouth marketing, brand perception)

Remember content is the key! Stand out from the crowd through your content.

What is your greatest challenge when it comes to Social Media Marketing for your business?