Coats Indonesia: Leadership Challenges in an Unfamiliar Culture

Anurag Bhatt (AB), Managing Director (MD) of Coats Indonesia, was on a flight from Bangalore to Singapore on his way to Jakarta after a vacation. On the flight, he was reflecting on an issue that he had encountered just before the vacation but not yet addressed. It would definitely be one of the first issues he would have to handle on his return. An effort to fill a senior position, Head of Procurement, currently occupied by an expatriate, had not been received with enthusiasm by those who seemed to have the potential to take on the role. One-on-one conversations with the potential candidates had not helped as each one suggested the name of another person as more suitable for the role. He had faced similar difficulties in recruiting Indonesians to occupy other senior roles. Nothing in his past experience helped him understand how these people were unwilling to accept an opportunity for career growth. One of the goals that had been assigned to him as he accepted his current role was to reduce the number of expatriates in senior ranks in Coats Indonesia. This was not feasible unless local managers were willing to rise to the occasion. He needed a way to address the lack of enthusiasm among managers in Coats Indonesia to take on positions with greater responsibility. He had some ideas, based on the short experience in the country, but was willing to get inputs from anyone who might have a better understanding of the drivers of behavior of Indonesians in general and managers in particular.

• Manufacturing processes
• Leadership
• Cross-cultural management