business
Canadian companies have many advantages in the global marketplace,
but a new report commissioned by HSBC Bank
Canada from The Conference Board of Canada shows we
aren’t yet making the most of our potential, and the HR
function could be doing more to help.
Selling to the World, The Keys to International Business Success
points out that only 10 per cent of small and mid-sized Canadian
businesses generate foreign sales, while 70 per cent of that business
is being generated by less than 1.4 per cent of those companies. It
shows that “the key to global success is to have a Global Competitive
Advantage (GCA),” which is “a firm’s ability to create more value
than its global rivals do for its international customers, through
differentiation.”
Along with a companion report titled Learning From the
International Experience of 20 Successful Canadian Companies,
Selling to the World identifies key factors that allow firms to succeed
in global markets. Above all, it highlights four “core resources” that
allow firms to develop their GCA: skilled executives, foreign market
knowledge, innovation capabilities and international networks.
Although the HR function is best positioned to address the first
of these, it can play a role in all four, says HSBC Bank Canada’s
executive vice president and head of commercial banking, Linda
Seymour.
“They all tie together, and I think it’s important that HR recruiters
look at all four,” she said.
Workforce diversity is also important.
“It’s important to acknowledge that from a skilled executive
standpoint, you need a diverse workforce,” she said. “For HSBC,
having a diverse workforce is a competitive advantage.”
Selling to the World identifies three qualities to recruit for in
skilled executives who can drive GCA: entrepreneurism, commitment
to international growth and international experience.
“Being entrepreneurial, and especially being a bit of a risk taker,
is so important when you’re looking at expanding globally. A
number of the companies in the study say they were able to grow
internationally faster than here in Canada,” said Seymour.
As for a commitment to international growth, she said,
“Canadian companies tend to look to the U.S. for most of their exporting,
when in fact we have to become less reliant on the U.S. and
start to look at exporting internationally.”
International experience comes in many forms.
“It could be an executive who has travelled the world and has
worked for different companies around the world. It may come
from the management team around that skilled executive,” said
Seymour. “The international experience has to allow that individual
to recognize the local cultures and how they can execute on their
business plan in that region or country.”
Vancouver-based Energold Group (aka Energold Drilling Corp.)
is one of the companies that participated in the HSBC study. As a
diversified global drilling solutions provider, Energold operates in
25 countries.
“We try to hire people who are nationals in the various countries
to the highest executive positions possible, and then support
them with people we bring in. Over 90 per cent of our labour force
is hired locally,” said Energold CEO, Fred Davidson. “The critical
item is being attuned to the local culture. They don’t even have to
be versed in the technical matters, as long as they’re good managers;
we can provide them the technical support.”
Pranch/shutterstock.com
A Whole New World
ALIGNING YOUR PEOPLE STRATEGY WITH YOUR GLOBAL
GROWTH STRATEGY
By Sarah B. Hood
HRPATODAY.CA ❚ OCTOBER 2015 ❚ 45