Cultural differences and rapid change mean the headquarters-oriented organizational systems used in Europe and the United States may not be significantly flexible enough for China. At the same time, empowering local managers can lead companies to stray from standards protecting core corporate values. Extra risk controls and increased board attention to corporate education and in-country leadership selection may be required.

As China presents great opportunities for global corporations, there also are great challenges to some of its traditional decision-making structures. The Chinese Services Group, in collaboration with Corporate Board Member magazine, brings you part three in the China Board Brief series "Balancing Flexibility and Control: Optimizing your Organizational Structure in China." Hear from clients and our own Clarence Kwan about how companies can strike the right balance between flexibility and control, in the full report attached below in PDF format.

Related content:
Listen to the podcast or read our first board brief and survey report, "The Board’s Changing Role in China Strategy," for further insight into how U.S. directors can manage risk and seize opportunity in China.

Listen to the podcast or read our second board brief, “Encouraging a Sustainable Approach to China Sourcing,” on preserving the short-term benefits of a global supply chain while protecting long-term shareholder value.