Get The Basics Right Before Going Global

Globalisation is an increasingly attractive prospect for businesses. While the benefits can be substantial, care must be taken to ensure domestic processes are properly established first.

As recently reported by HR Leader, globalisation is at a record high. There are a variety of benefits that can come from global expansion, such as a larger market to work with, cheaper prices, and improved outsourcing opportunities.

While the benefits are clear, leaders should approach decisions with care and caution. Capability should be considered first and foremost, as businesses don’t want to overextend themselves.

“Once it’s been established that a company is ready to grow internationally from a business perspective, it’s also critical to the organisation’s success to assess whether the leadership team is capable and confident in executing the expansion plans,” commented global business expansion expert Trena Blair, CEO of FD Global Connections.

“Making sure the right people are in the right roles at the right time to support this phase of growth, that the senior team has cultivated trust with their staff by mastering the art of delegation, and that the decision-makers are focused on fostering an environment that invests in the development of employees and encourages new ideas from all levels across the business is imperative.”

There are significant roadblocks that come along with global expansion. According to Multiplier, some of the top challenges are:

  • Legal and regulatory compliance.
  • Cultural differences.
  • Organisational communication.
  • Marketing strategies.
  • Local competition.
  • Supply chain risks.
  • Accounting and financial differences.

Further to these considerations, Blair noted that the pressure can often be too much: “One specific challenge I have observed frequently in working with leaders and their teams, especially those involved in building the business up to this point in the life cycle where it’s ready to expand into different markets, is fatigue.

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