ABSTRACT
BOC used to manage through a standard regional structure. Highly autonomous country managing directors reported to regional directors. Results were collated in these regions and regional directors ran each one with immense autonomy. Four years ago they began a move towards a new business structure based on a global line-of-business model. By late 2001 BOC considered that it had made the transition from being essentially a regionally based organization to one that was structured around global lines of business. Such a strategic change in the business model implied a completely different approach to staffing, including international mobility. Asia was the last region to transfer to a global line of business. HR had to help the business manage the risk of taking out expatriates and putting local people into bigger positions, whilst also supporting the new managers and structures to help them succeed. The Asian organization had not been as “structurally evolved” as other geographic areas. Therefore, the organization capabilities in BOC were derived from “steady, stone-piped and seniority-driven” structures. The managing directors had been the only integrating point within the organization. The new global structure meant that even the country experience and insight of senior managers was not necessarily valuable: “They can’t apply what they have learned from similar jobs in countries because the jobs are slightly different.” Therefore, those individuals below managing director level would now face real business management exposure, whilst also having global support and development. The country managing directors would slowly let go of control and would be gone within a couple of years.
