Over the past five years, GAG has observed many companies attempt and fail at their mission of global expansion. GAG has advised successful companies in this endeavor and has also used the expertise gained in the global expansion of clients to define the three main reasons companies fail in this effort.
The first reason lies in the fundamental difference between multi-national and global. Many companies are multi-national and for that reason, they believe that they have the necessary resources to become global in their manifestation. This is far from true. Multi-national companies may have operations and sales forces in other locations than their home country but utilize the talents and capabilities of their home based personnel to try and conquer markets overseas. The capabilities of these individuals along with a lack of local knowledge, customs, and cultures makes for a very long learning curve. Mistakes are not easily rectified nor are potential customers willing to forget past transgressions easily. It is important to understand the differences in the two positions and ask the question, “is your organization global or just multi-national?”
The second, is the lack of a well-defined and documented strategic plan to globalize the company. Without a focus on the “why” the “how” becomes impossible. An exhaustive and thoughtful process of creating the vision for globalization must be inculcated in all levels of the organization. The fundamental reason that most planning fails is because of the lack of understanding why the process needs to be defined. Ask yourself “why” you want a new home, before you draw the plans and buy the land. Do you need a new home because your family has outgrown the current one? Is the current home too costly to repair? Moving to a new home because friends or other do, is rarely a good reason to spend so much money on a new house. To summarize this point, a lack of vision for “why” something must be done will ultimately lead to the failure in how it is done.
Lastly, the execution of the company’s globalization plan must be with total conviction. Being half-hearted in the implementation will lead to failure. All of the best planning and abundant resources will not assure success if the leadership is not totally focused and committed to accomplishing the ultimate goal of globalization. The organization’s leadership must and should be prepared for some difficult problems. With the right advisors helping to uncover obstacles and smooth the pathway, globalization should not be feared.
Global Advisors Group, works with clients to prepare them for their globalization journey. We know the pitfalls and will utilize our resources to help clients succeed where others have failed. The right partner will make all the difference.
Join us; and let’s work together in pursuit of global growth.
Global Directors Group LLC is an advisory firm. Global Directors Group LLC is not a brokerage firm nor does it conduct any brokerage activities..