CEO of BCG questions Globalisation Benefits

Date: 23-08-2007
Source: BRW

Chief executive of the Boston Consulting Group, Hans-Paul Burkner, believes companies are too quick to think of the benefits of globalisation and too slow to think of the impact maintaining global operations will have on a business. Burkner says globalisation is not a simple process and developing effective global operations is all about creating a synergy between low-wage costs and cross-border communication.

Globalisation also throws up issues of infrastructure development in places like China, India and Europe. Decentralisation of management is a key to effective global operations and Burkner says human resources development is increasingly important. Despite huge population pools to draw from in India and China, there are still relatively few local skilled workers to fill top positions. Another aspect of globalisation is emergent competition and a company needs to know what it's commercial advantage is.

Burkner says even the internationally-placed Boston Consulting is not seamless in its operations. Burkner says he has seen some great commitment from Australian companies to getting globalisation right.