Joint ventures (JVs) have become an important element of many companies’ business strategy. For those aiming to do business internationally, JVs are often the only feasible way to enter new markets.
Due to the many complex human capital considerations necessary in any JV, it is essential to have HR involved from the early stages when a JV is being considered. To contribute meaningfully to these discussions, HR professionals must understand the potential issues and problems that can arise in a JV and have the resources necessary to develop solutions.
Given the strategic importance of JVs in today’s global business environment, one might expect to easily find guidance on tackling the complexities of a JV, based on widely used, successful methods. But that’s not the case. A review of the literature on JVs shows much of it to be incomplete at best, contradictory at worst. Tactics and solutions that make sense for one JV often don’t resonate for another for reasons that aren’t obvious or explained by the experts.
After helping many clients navigate the human capital issues of JV journeys, we’ve developed the following guidelines for HR professionals faced with the prospect of an impending JV.
|An HR guide for navigating joint ventures (JVs)