The perils of attention from headquarters

In the far-flung subsidiaries of global corporations, getting attention from headquarters can often be an asset. However, such attention from headquarters can have a downside as well, sometimes triggering a dynamic that hampers performance. Even with the best of intentions, headquarters support can easily mutate into hyper-attention that destroys value. To explore this phenomenon, the authors conducted 55 interviews with subsidiary managers based in China. For subsidiary executives, such visits consume considerable amounts of time and energy, and from a research perspective, they offer a rich vein of information (even though the interviewees agreed to speak only on condition of anonymity). The companies studied represented a variety of industries involved in both products and services, and included major corporations based in the United States or Europe. Only about a quarter of the managers interviewed were broadly satisfied with the quantity and quality of attention received from the headquarters. The overriding complaint from China subsidiary managers concerns the number of visits from head office staff. The proliferation of visits is especially disruptive when subsidiaries are overstretched and pursuing ambitious growth targets. Another area of frustration had to do with the perceived lack of understanding and realism of headquarters executives. In the face of scrutiny, attempts by headquarters managers to understand whatu0027s going on can easily be construed as mistrust, leading subsidiary managers to become cautious and wary about what they reveal to visiting executives. A set of recommendations for healthier dynamics between corporate headquarters and affiliates is presented