Bringing 'Asia' onto the board: finding the right candidate presents some familiar, and not-so-familiar, director-recruiting challenges.

• Author: Ha, Julian
• Position: HEIDRICK & STRUGGLES GOVERNANCE LETTER

RECENT FORECASTS by the International Monetary Fund confirm what most multinational companies have known for some time: the best hopes for growth in the foreseeable future lie in Asia. While growth in advanced economies is expected to reach only 2.5 percent in 2011, emerging and developed economies are projected to expand by 6.5 percent. China and India will lead the way, growing by 9.5 percent and 8 percent, respectively. Vietnam is projected to grow by 6.3 percent, Indonesia by 6.2 percent, and Malaysia by 5.5 percent.

With these trends expected to continue well into the future, the companies we talk to are increasingly eager to add board members with experience and expertise in Asia. They want someone who has recently built or run a business there and who can bring an on-the-ground perspective to the board's oversight of strategy and risk in a region that necessarily looms larger than ever in company performance.

Finding the right candidate, however, presents some familiar and not-so-familiar challenges. Boards that understand these challenges--and the options available for addressing them--will position themselves to attract colleagues whose business experience and connections will bring wisdom, insight and advice about Asia into their boardrooms. When done well, this can have significant impact and create a real difference in results.

The Challenges

The first challenge lies in taking care to define precisely what you mean by 'Asia.' Although it should go without saying that Asia is not a country but a continent comprising numerous countries and cultures, it is surprising how vague companies can be, especially at the board level, about their needs in the region. By' Asia' do you really mean China? India? Indonesia? Japan? A combination of several countries? The answer, of course, depends on the company's strategy in the region. But if that strategy embraces more than one country, someone who knows one country there doesn't necessarily know any of the others--and their varying degrees of political, business, economic and social circumstances.

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Given today's country-by-country growth forecasts, boards looking for 'Asian' representation often actually mean China and India. That can be a difficult bill to fill, especially if there is only one vacant board seat. But clarity about wanting both, rather than willingness to settle for one or the other, is likelier to lead to the optimum solution, which may, for example, turn out to be an expat who has worked in both countries.

A second challenge lies in finding qualified people who are willing to serve. We have found that when it...