Language barriers make it difficult to understand why a foreign subsidiary
is unsuccessful.
The local managing director may be doing all he can to mask the real situation.
In this case, the use of a business-wise independent consultant brings a fresh view of the subsidiary's operations, policies (real, not stated) and the ambience prevailing in the subsidiary.
The apparently affable local managing director seen during the occasional visits from the Holding Company may be a tyrant for the rest of the year, creating low morale and resulting in the subsidiary only retaining employees who cannot find employment elsewhere.
The Holding Company will probably have a fairly good idea as to why the results are poor. However, the local Director may throw up a smokescreen of reasons to justify his failure such as:
It may be worthwhile to employ an Independent person to examine the Subsidiary operations and to report on the veracity or otherwise of the local Director's claims while giving his own independent view of the possible solutions to the underperformance.
I undertook such an operational audit in Madrid in 2002.
Print this pageInterim Manager (Managing Director or Financial Director) since April 1997, based Madrid working both in France and Spain.
British national speaking perfect French and excellent Spanish.
Hands-on, pragmatic, natural leader.