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CHINT GLOBAL: SELECTING THE NEXT COUNTRY MANAGER
Lin Lu, Min Sun, Paul Beamish, Elie Chrysostome, and Jingshu Zhang wrote this case solely to provide material for class discussion.
The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised
certain names and other identifying information to protect confidentiality.
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Version: 2024-05-27
tC
James Han, the head of the strategy and planning department at CHINT Global Pte. Ltd., got off the phone
with Sherif Assad, the key account manager at CHINT’s Saudi Arabian branch, in a bad mood. Han was in
charge of business strategy, implementation, and management team development at CHINT Global, which
was the overseas arm of CHINT Group (CHINT), a Chinese intelligent energy solutions provider. During
their call, Assad had complained about his direct supervisor, Henry Zhao, the Saudi Arabi branch manager.
Zhao had reportedly told a key customer that Assad’s words should be ignored and implied that only
Chinese managers could make final decisions for CHINT Saudi Arabia. Assad worried that being
undermined by his boss without receiving any notice made him lose credibility in his client’s eyes. It seemed
to him that Zhao always wanted to be seen as a superior salesperson instead of leading the whole sales team.
No
This was not the first time that Zhao had caused trouble. In fact, Han had already received numerous
complaints from the the supporting functional teams at the company headquarters. The latest phone call
was the last straw because Assad directly reported to Zhao in his daily job. It had become obvious that Zhao
was incapable of leading the branch, and keeping him in the position meant a waste of resources and risk
of losing market share. To prevent any future problems and reduce the potential risk, Han made up his mind
to replace Zhao and find a new country manager for CHINT Saudi Arabia.
Do
Zhao had just signed a very substantial deal with the Saudi Arabian government, bringing the branch revenue to
US$100 million by mid-2021. As his mentor, Han was proud of Zhao’s sales skills and spirit. Han recognized
that Zhao needed further training to help him make up for his limited communication and management skills,
without which he could hardly be developed into a general management talent; Han just did not expect it would
have to come so soon. Yet, it was time to consider who the next country manager should be, leading the Saudi
Arabian branch into a new stage of development. With his long-term deep involvement in the management
development program, Han quickly narrowed his thinking down to two candidates.
COMPANY BACKGROUND
CHINT Group, founded in 1984, was a world-famous intelligent energy solutions provider. The group
worked across industrial sectors such as smart electricity, green energy, industrial control and automation,
smart home, and others, and had gained advantage by controlling the whole industry supply chain,
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integrating power generation, storage, transmission, transformation, distribution, sales, and consumption
(see Exhibit 1). By the end of 2022, CHINT had expanded its business to more than 140 countries and
regions (see Exhibit 2). CHINT Global grew out of CHINT Group’s export department in 1991. Like many
multinational groups, CHINT’s overseas business had gone through multiple stages (see Exhibit 3 for
CHINT Global revenue growth).
CHINT Global: Main Development Stages
The initial stage (1991–1996) involved foreign trading. CHINT relied on domestic and foreign trade
companies to export its products.
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The germination stage (1997–2008) saw the initiation of self-managed exports. In this period, CHINT
obtained a government licence to handle imports and exports. Meanwhile, CHINT’s electric product
categories were expanded from low-voltage products to medium- and high-voltage equipment. The first
international markets which CHINT entered included several countries in Africa and Southeast Asia, as
well as Russia. CHINT products were sold to these markets through local agents and sales channel partners.
The rapid growth stage (2009–2015) saw the development of overseas companies. While CHINT continued
to set up new overseas branches, at the same time, it was restructuring the operation and management of
existing branches. In order to rapidly expand abroad, CHINT also conducted overseas mergers and
acquisitions to quickly gain a foothold in the local market and build up its operation and storage capacity.
This strategy brought about the fast development of international business.
tC
By 2016, CHINT Global had become a mature company, which allowed it to be deeply involved in the
cultivation of overseas branch companies. At this stage, CHINT participated in the Belt and Road Initiative,
China’s international policy, and tried to explore a unique path of globalization by leveraging its global
resources advantage (see Exhibit 4 for CHINT Global’s employee count growth).
No
From 2016 onward, CHINT Global, as an integrated sales and marketing platform of CHINT Group,
gradually developed a structured business portfolio covering four major functions. The first function,
traditional business, involved selling electrical and solar products to overseas markets. The second and
expanding function was developing manufacturing plants in different regions. The third function was
founding regional hubs to support the supply chain demand of CHINT Global. The last one was
implementing infrastructure EPC (engineering, procurement, and construction) projects, which was
complicated and challenging but generated a very significant revenue for CHINT.
CANDIDATE ONE: WENDY SUN
Do
The first candidate that Han identified from his talent reservoir was Wendy Sun, the country manager of
CHINT’s Turkish branch at the time. Sun joined CHINT immediately after obtaining her undergraduate
diploma in 2007. She started out in the administration function and worked as secretary for two vicepresidents. One of them, Bella Zheng, became Sun’s mentor. In her first ten years at CHINT, Sun had been
sent abroad to work with local sales teams and had been assigned to a finance role consolidating and
handling financial materials for several branch companies abroad. In these jobs she had gained finance
knowledge and developed ideas about financial processing, profit and loss statements, as well as finance
policies in different foreign countries.
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The turning point in Sun’s career came in 2017, the same year she got married and had her first baby. A
critical, challenging opportunity appeared: CHINT’s Turkish branch needed an assistant country manager.
Zheng, Sun’s mentor and senior manager at CHINT, asked her if she wanted to take this position.
Turkey was an important market for CHINT Europe, where the group had built a long-standing relationship
with a large local trading company. However, in 2017, the company’s long-term business partner faced a
serious financial crisis. If it had shut down, CHINT’s business in Europe would have decreased by 20 per
cent. After careful consideration, CHINT decided to acquire the struggling company and appoint Emir
Khavici, its former general manager, as the sales director. At the same time, CHINT appointed a Chinabased general manager, a technical expert who had worked with Khavici for many years, to take on the role
of country manager.
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As Sun was familiar with the expectations of top management at CHINT and could pass instructions from
the headquarters, she was chosen as assistant country manager to support her Chinese colleague. At that
time, Sun’s daughter was only one year old, so Zheng suggested that Sun carefully think it over. Finally,
with full support from her parents and husband, Sun accepted the position and left for Turkey to start a new
stage in her career.
tC
Only half a year later, Sun was promoted to country manager position of CHINT’s Turkish branch. A major
reason for this change was unresolved conflicts between the originally assigned country manager and the
local sales director. They were close in seniority. As the country manager was experienced in product and
technical issues, he was very confident in his judgment and decisions. Whenever he and the sales director
had different opinions, heated arguments occurred between them. As a result, Han often had to be called in
to resolve the problem. Another reason for the change was the family situation of the country manager. As
the Turkish branch was a newly acquired company, the country manager had to work long hours at a time
when his wife, who stayed back in Shanghai, was pregnant and required care. After the country manager
travelled to Shanghai three times within three months, Han decided to remove him from the position. There
was no choice but to put Sun in his place.
No
After four years as country manager at CHINT Turkey, Sun built a solid, friendly relationship with the sales
director, which she said she had never expected to happen. She assessed that she had achieved that by taking
three steps. The first step was to gain Khavici’s trust. He admitted that when he heard the news that Sun
would become the country manager, he had doubts as to whether she would be capable of taking on such
an important position, whether she had the relevant technical knowledge, whether she knew how to deal
with European clients, and what resources would she be able to obtain from the headquarters. At the initial
stage, Sun defined her role as a “messenger” who would be passing information between CHINT China
and the Turkey sales director. She showed him respect and focused on listening. Such an attitude made
Khavici feel comfortable, and there were no arguments between them.
Do
At the same time, Sun was learning from Khavici, which helped her quickly familiarize herself with the
electric industry market in Turkey. She showed both courage and persistence in the job. For example, once
there was a product quality issue in a rural power station located quite close to the border with Iraq. During
that time, Iraq was conducting military operations in the area. In spite of that, Sun insisted on visiting the
client together with the sales director, which won her his respect.
Importantly, Sun made an effort to better understand her colleague and his working style. She gradually
understood Khavici was an outstanding salesperson, with a professional, passionate working style and rich
business experience. However, he was weak in handling complex operational issues, especially internal
coordination tasks. This might be attributed to the mature organizational culture that had been in place where
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Khavici had worked for most of his career. The European company where Khavici had worked prior to joining
CHINT had well-trained and effective functional teams to support the sales job. In contrast, the CHINT
headquarters was located in China, so cross-cultural communication and management were much more
complicated. Khavici needed a strong mechanism supporting his sales activities in the local market. After
identifying her colleague’s key requirements, Sun fully stepped into her role as Turkish country manager.
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Realizing that a strong and supportive operations platform was essential, Sun took advantage of the network
she had set up during her past ten years at CHINT. The critical task was building up a whole-range
functional team, including such tasks as order fulfillment, logistics, customs clearance, and finance. More
importantly, the support team needed to be well organized to assist Khavici’s sales team. To achieve this
objective, the key was to find the right people on the local labour market. Fortunately, CHINT Global had
already designed a template that specified all functional roles’ responsibilities and competencies for the
support team. The template sheet was quite simple and straightforward. Based on the same format,
managers in different countries could also customize the job descriptions and related figures.
The next step was developing the sales team. Sun helped Khavici hire several top salespeople for his team.
This improved his sales force and reduced his workload. Meanwhile, Sun persuaded the headquarters to
provide an aggressive incentive plan to motivate local sales in Turkey. According to a salesperson’s tenure
and capability, Sun and Khavici designed five salary packages and updated them every year. An effective
operational platform and strong incentives led to significant business growth. Between 2017 and 2022,
CHINT’s Turkish branch recorded an 80 per cent aggregate revenue increase. As Sun said, “I always trust
my team members and give them the power to make decisions, instead of giving them instructions. This
working style makes me valuable to the CHINT Turkey team.”
tC
After the COVID-19 pandemic broke out in 2020, Sun was forced to stay in China for more than one year.
However, the physical distance did not damage her connection with Khavici. Every day, Sun worked with
her Turkey team by email and tele-conferences. She held a conference call with Khavici every night,
typically for more than two hours at a time. After working together for four years, Khavici recognized Sun’s
significant contribution to the Turkish branch. With shared information, they were working on the same
page for the future of CHINT Turkey. Yet despite these efforts, Sun admitted that the lack of face-to-face
communication made her feel that she was losing control.
No
Because of Turkey’s geographical location—straddling Europe and Asia—CHINT Global planned to use
its Turkish operations as a “fortress” and a logistic hub to expand its European business territory. Sun was
assigned a concurrent position as the Italy branch country manager late in 2021. Besides running the
existing business, acquiring or building a factory in Turkey was also put on her agenda.
Do
Despite the positive relationship that had been established, Sun was not sure if her Turkish team could meet
the headquarters’ growth expectations. For example, on several occasions when the top management had
released specific sales targets, Khavici considered them impossible to implement, indicating he was not
completely immersed in CHINT’s culture and spirit, although he readily recognized CHINT’s capability
and efficiency. Sun realized that more local talent would help Turkey and other European branches to
maintain rapid business growth. Capable local salespeople like Khavici were the most important and
valuable partners, but they needed support to stay on the right track.
When Han contacted Zheng, the vice-president of CHINT Global and Sun’s mentor, asking her to comment
on Sun’s competence, Zheng said that Sun was outstanding in communication, leadership, cross-functional
experience, and championship personality, and she firmly believed Sun would be a capable country
manager wherever she would be assigned.
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CANDIDATE TWO: PAUL MA
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Paul Ma was CHINT’s country manager in Egypt. Ma was born in a Muslim family and majored in Arabic
language in a religious college in China. He entered the business world instead of becoming an imam, as
his family had expected, because he wanted to take a managerial role to make a difference in a specific
industry. Owing to his fluency in Arabic, Ma’s first job was as an interpreter for a Chinese agricultural
company that had a construction project in Egypt. At the beginning, he worked as an interpreter between
the Chinese project manager and the Egyptian side. Later he started to manage the thirty Chinese
construction workers at the site and take care of their administration and logistics issues. When a military
coup took place in Egypt in 2013, the Chinese project team was besieged in their camp for over two months.
It was in such difficult circumstances that Ma felt the responsibility of being a manager. He would go out
to buy food and other necessities and contact the embassy, and he brought the whole team back to China
safely. This experience did not discourage him from working abroad. One year later, Ma joined CHINT
Global, knowing that he would be sent back to Egypt.
Before Ma assumed the position of sales manager in Egypt, Han took on the role of his mentor and arranged
for him a three-month training at the CHINT headquarters, both in the office of CHINT Global and at the
plant of CHINT Group. The training program included general information about the company, product
information, plant practice, procedures and regulations in sales, and international trading knowledge.
tC
When Ma left for Cairo, CHINT was building a manufacturing plant in Egypt, so Ma was assigned to
temporarily support this ongoing project. Although it was beyond his role, Ma took great efforts to embark
on this task. His former experience and language skills aided in communicating with the local government
and recruiting local employees. During the first year, Ma made a significant contribution to the new plant
and quickly became familiar with CHINT products as well as developed good personal relationships with
many colleagues in Egypt and at the headquarters.
No
One month after Ma formally joined the Egypt branch of the company in 2017, the incumbent country
manager Henry Zhao was transferred to Saudi Arabia, where CHINT was registering a new branch. After
careful consideration, Han decided to promote Ma as country manager for CHINT Egypt. There were only
two weeks before Zhao would leave for Saudi Arabia, so Zhao and Ma spent entire workdays together to
ensure Zhao could transfer as much knowledge as possible to his successor, including information about
clients, the local team, sales practices, financial regulations, business environment, and so on. Fortunately,
the sales manager whom Ma would work with in CHINT Egypt was a former CHINT agent, an industrial
expert, and a professional sales leader in the local market.
When he became the country manager, Ma tried his best to generate impressive sales performance. He spent
90 per cent of his time accompanying salespeople on visits to customers, pursuing large orders. Although
initially the revenue output was not satisfying, the experience helped Ma become familiar with the local
customers and the industry.
Do
To support Ma, Han worked with him to design a detailed and feasible business development strategy. In
the first two years, CHINT exclusively targeted rural areas as a potential niche market because the
competitors from Europe and the US had a huge advantage in the mainstream electric market. Rural clients
also required quick response and flexible service, but the giant suppliers were not willing to serve them.
This previously-ignored niche market was good for CHINT’s Egypt branch in the initial stage. An efficient
way to build a service team was to attract junior staff from local competitors, who were familiar with the
rural customers’ requirements and ready to accept a relatively low compensation.
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After establishing itself in the rural market, CHINT Egypt began to approach the high-end market. Ma
upgraded the local sales team by attracting senior sales staff from the competition, who brought over their
personal client networks. In this way, the branch could gradually develop its high-end customer base. Apart
from business strategy, Han also coached Ma on communication and leadership. He guided Ma to realize
that leading the team and empowering his subordinates was a more efficient approach than doing everything
himself. Gradually, Ma’s working style began to change from handling everything by himself to motiving
and monitoring his team members to get better results. Based on his observation, Han was satisfied that Ma
spent his working time like a general manager—that is, 30 per cent on sales work and clients, 30 per cent
on coordination with the headquarters, and 40 per cent on team management. As a result, the revenue
compound growth for a three-year period from 2017 to 2019 reached over 30 per cent.
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Han considered Ma as a strong-minded, persistent, and goal-driven person. Once, during a sales review
meeting, a subordinate described a high-value deal as impossible to win, citing several difficulties, and
other members of the sales team suggested giving up. Ma took it up himself, resolved all the issues, and
signed the deal.
tC
While Ma was the country manager for CHINT Egypt, in charge of the overall operations of the branch,
his leadership style was not autocratic. When a big construction project implemented in 2020 required Ma
to select a supplier, drawing on his experience, he appointed the CHINT Egypt plant as the key supplier
and another vendor as the backup supplier. Two of his subordinates suggested that two vendors were not
sufficient and proposed to increase the pool of vendors to four, but Ma immediately rejected their proposal.
Nevertheless, the two staff members kept visiting Ma’s office and eventually persuaded him to accept their
suggestion. Later on, Ma realized this decision helped the company avoid serious problems. Having more
vendors extended product coverage and lowered the costs. Moreover, different vendors pulled in valuable
resources, which improved the relationships with clients. In the end, CHINT invited six vendors to become
involved and successfully implemented this project. Ma openly thanked the two colleagues for their
persistence. After that, all team members knew that suggestions would be encouraged and welcomed, as
long as the ideas could benefit the group. In addition, personal rewards were tightly linked to team
performance; if a project went well, the whole team would be rewarded. As a result, the staff members did
their best to contribute to the team.
No
CHINT Egypt continued to make significant progress. Its revenue grew at 35 per cent annually in the three
consecutive years from 2020 to 2022. Ma also took over the role of country manager for Libya at the end
of 2021. Leveraging the Egyptian production facility and maintaining rapid revenue growth became his
major tasks. Han knew that Ma still had some weaknesses to address. For example, he did not know how
to engage in up-management and was sometimes clumsy in acquiring resources and support from the
headquarters. Another area for improvement was strategic thinking and team management. In fact, Ma often
consulted Sun and tried to learn these skills from her.
DECISION TIME
Do
The need to assign a new country manager for Saudi Arabia was unexpected. Even though Zhao had sufficient
project expertise and knowledge of CHINT processes, his management style brought uncertainty for the future
Saudi Arabian operation. The top management could not take risks in this important market. More importantly,
according to the global manufacturing network plan, CHINT was planning to open a new plant in Saudi Arabia
to support seven countries nearby, thus substantially improving their lead time and service quality. The
government of Saudi Arabia had recently released a major infrastructure building plan for several new cities,
providing a unique business opportunity for CHINT Global. Given all these factors, selecting the right country
manager was critical for the branch company. While Han had two potential candidates, Sun and Ma, he still
found it hard to make a decision due to his concerns about each of them.
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Sun was good at communication and team building. There seemed to be no doubt that she could integrate
with the current Saudi Arabian team. She had experience building up a whole functional team for a branch
company. She was also familiar with the headquarters’ strategic expectations and proficient in acquiring
relevant resources for the local team. However, Sun’s technical knowledge of electric products and her
sales team leadership skills were not as developed as Zhao’s. Additionally, CHINT Saudi Arabia did not
have as capable a sales director as the Turkey branch had in Khavici. This absence meant that the new
country manager had to lead the sales team. Another concern was what would happen to CHINT Turkey if
Sun left. For CHINT Global, Turkey had become a leading branch company in both growth rate and
revenue. Sun had a detailed plan to help the European team maintain rapid growth. Although she had
prepared a strong team, it was questionable whether her successor could keep up the performance of
CHINT’s European business.
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Ma’s profile, with his experience in mega-deal sales and leading a sales team, was also satisfactory. Han
had mentored him for more than seven years and he expected that Ma could rely on his strengths to build a
good relationship with the functional team in Saudi Arabia. In addition, Ma’s departure was unlikely to
create too many issues for the Egyptian branch, as the Egyptian plant manager could temporarily monitor
the branch, and there was another backup country manager in the headquarters. The biggest concern was
Ma’s ability to handle the complex business and projects in the Middle East area. Among the thirty CHINT
country managers who had taken a series of training programs in the past six years, Ma had reached an
intermediate level, while Sun had obtained an advanced certification. An alternative plan would see Han
continue to coach and support Ma as before and become involved in the decision-making and generating
solutions together with Ma. However, Han’s responsibilities had already changed from being a regional
director to running the overall strategy planning and implementation at CHINT Global. He was therefore
afraid that he would no longer be able to spend as much time with Ma as might be needed.
Do
No
tC
Given the urgent need to assign a new country manager to Saudi Arabia, Han planned to spend another two
days on consideration and finding a solution. He already booked a meeting with Bella Zheng for the
following day. He expected that the two of them would reach an agreement on the selection.
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Note: PaaS = platform as a service.
Source: Company files.
tC
No
EXHIBIT 1: CHINT’S “ONE CLOUD & TWO NETS” STRATEGY
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tC
Source: Company files.
No
EXHIBIT 2: CHINT’S GLOBAL PRESENCE
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Year
Annual Revenue (RMB
Billion)
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EXHIBIT 3: CHINT GLOBAL’S ANNUAL REVENUE (2017–2022)
2017
2018
2019
2020
2021
2022(e)
2.3
2.5
2.8
3.1
3.9
4.8
Note: e = estimate.
Source: Company files.
EXHIBIT 4: CHINT GLOBAL’S EMPLOYEE COUNT (2017-2021)
Source: Company files.
2017
478
438
916
2018
520
485
1005
2019
560
537
1097
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Year
Chinese Nationals Count
Foreign Nationals Count
Total Employee Count
2020
535
689
1224
2021
610
858
1468
EXHIBIT 5: CROSS-COMPARISON OF CHINT GLOBAL’S THREE HOST COUNTRIES
Indicator
GNI per Capita in 2021* (US$)
Population 2021 (Thousands)
Egypt
Turkey
21,540
3,350
9,900
35,950
109,262
84,775
Absolute monarchy
Republic with military
president
Constitutional
republic
0.50
-0.43
-0.09
80
64
66
38
27
37
Product selling,
infrastructure projects
Product selling,
manufacturing
Product selling,
supply chain hub
tC
Political System
Saudi Arabia
Government Effectiveness
Power Distance Index
Individualism Index
No
CHINT’s Local Branch
Operations
Do
Note: * Most recent available data for Saudi Arabia is from 2020; GNI = gross national income; Government Effectiveness is
one of six dimensions of governance measured by the Worldwide Governance Indicators project; Power Distance and
Individualism are dimensions of culture outlined by Geert Hofstede; Power distance and Individualism indicators for China are
80 and 20, respectively.
Source: “GNI Per Capita, Atlas Method (Current US$),” World Bank, accessed March 12, 2023,
https://data.worldbank.org/indicator/NY.GNP.PCAP.CD?name_desc=false; “Population, Total,” World Bank, October 18,
2022, https://data.worldbank.org/indicator/SP.POP.TOTL; “Home Page,” Worldwide Governance Indicators, accessed March
12, 2023, https://info.worldbank.org/governance/wgi/Home/downLoadFile?fileName=wgidataset.xlsx; Geert Hofstede, Gert J.
Hofstede, and Michael Minkov, Cultures and Organizations: Software of the Mind, 3rd ed. (New York, NY: McGraw-Hill, 2010),
57–58 and 95–97.
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