How to Globalize Yourself

Kelly O'Dea used to think of himself as a Lone Ranger, living and working in countries where only a select breed of American businesspeople had gone before. As president of worldwide client services for Ogilvy & Mather Advertising, O'Dea commutes between London and New York. He's outside the United States about 70% of the time; for the past 15 years he's handled assignments in dozens of countries on five continents.

Six months ago, on a layover in the Bangkok airport, O'Dea realized that the Lone Ranger wasn't alone. He struck up a conversation with the woman sitting next to him, an investment banker who was also making the 25-hour flight from Sydney to London. As the two of them talked about their companies' urgent emphasis on global operations, two others chimed in with similar stories. The four of them soon realized that they represented a completely new kind of business leader: one who is multicultural and multiskilled, who doesn't regard an overseas assignment as either exotic or traumatic. It occurred to O'Dea that people, just like brands, must be "globalized" if they're to compete successfully in rapidly changing international markets.

"International work experience is no longer just an option -- it's mandatory for anyone in business," says O'Dea. "Five years ago, only 6 of our 15 largest clients were actively marketing brands across borders; now all 15 are. So it's no longer adequate to think about only your domestic market. You need to have a firm understanding of how business gets done in different countries."

Before you rush off for parts unknown, a few words of caution: an overseas assignment helps only if you do it right. The experience you gain won't do you much good if you lose touch with the home office. Or if you alienate local businesspeople because you don't understand the culture. And you'll find it's virtually impossible to master the intricacies of international finance or marketing if your spouse is miserable or your kids are complaining about their new school.

To help you understand what you're getting into, we've asked three global workers to share their greatest challenges while on overseas assignments -- and their advice for meeting those challenges, along with additional reflections from three experts. Taken together, the tips, tools, and resources you'll find here are your passport to a new world, a world where business as you have known it will never be the same.

Negotiating Finances

Globetrotter:

Frans Ryckebosch, 55, founder of China Management Consulting, Westport, Connecticut.

Overseas Assignment:

General manager for Xerox in Shanghai from 1987 to 1990, responsible for a $30 million joint venture with two Chinese partners to manufacture and market Xerox copiers in China.

Global Challenge:

Avoiding the hidden costs of living overseas. Before I took the China assignment, I negotiated with Xerox for a 25% hardship allowance on top of the standard Xerox package. Even so, many hidden costs remained hidden -- from the pricetag for new appliances to late-payment fees on bills.

Lesson #1: Visit the country before you negotiate with your company.

The better you know the conditions in the country you'll be living in, the more effectively you can negotiate a deal that will make you happy. For example, my TV didn't work in China; I should have negotiated an allowance to lease new appliances when I arrived. I also should have gotten an allowance for calling home, since China's long-distance charges are far higher than U.S. rates.

Lesson #2: Opt for automatic payment.

It's hard to keep up with your U.S. bills when you're living overseas. And when you fall behind, your credit rating plummets. So I had my salary deposited automatically in a U.S. bank, and I used automatic payment whenever possible -- or I'd contact the company, explain that I was living outside the United States, and ask for a grace period. I was never turned down.

Coordinates: Frans Ryckebosch, fkr@juno.com

Finance Expert:

Robert Klein, an Ernst & Young partner who oversees the company's expatriate and global HR services in the New York area.

Advice from the Expert:

When negotiating expenses with your company, focus on the "three-legged stool" of finance: 1. Housing allowance. Negotiate an allowance if your new housing exceeds the cost of your housing in the United States -- your company should pick up the difference. 2. Cost-of-living allowance. If the cost of a U.S. basket of goods and services is double overseas, expect your company to reimburse the difference. Data providers such as Organization Resources Counselors in New York measure cost-of-living differences (212-719-3400). 3. Tax equalization. As a U.S. citizen working overseas, you'll be hit with U.S. and foreign taxes. Typically, you pay U.S. taxes on your annual earnings; your company is responsible for everything else, including U.S. taxes on cost-of-living and other allowances.

Coordinates: Robert Klein, robert.klein@ey.com