In the first part of this article, I addressed the importance of targeting the right foreign 
markets for your firm’s global expansion and the importance of selecting capable, honest partners to assist you. I would like now to consider two additional factors of international operations.
Understand Culture and Business Practices
Now comes one of the most difficult steps in the process. You must truly listen to the wisdom and insight of your local partners. You are now preparing to work in a foreign environment with a different culture and laws. Regardless of the target country and regardless of how wonderful your business model, sales and marketing programs, administrative processes are in your native country, the way business is done in your target country is different.
Only your trusted partners can teach you those differences and how to adapt to them so that you can be equally successful in this new market. I say that this is one of the most difficult steps because it is easy to dismiss as “crazy” the way things get done in your new country. To you they may seem inefficient, backward or even counter intuitive. However, you chose your partners in large part because of their local knowledge. So listen to them. To be sure, as the CEO, you have to ultimately decide how your business will operate in this market. But make informed decisions based on what you have learned from your local partners.
Go There—Often
Finally, as much as you would like to do otherwise, you simply cannot manage foreign operations solely by remote control or by flying in for the day, getting a briefing from the local staff and then catching the next plane back home. To truly understand how your foreign operations are working, the challenges they are facing and the options for improving the company’s performance, the CEO or a very trusted representative simply must make regular multi-day visits to each foreign operation.
This is necessary for the same reason that the CEO visits his local operations, remote sites and even wanders the hallways of the corporate offices from time to time. To truly understand any of his/her operations, the CEO must be present, inquisitive and listening for opportunities to improve. As an added benefit, visiting your new country of operations over an extended period of time is the only way to gain the trust and respect of your local partners and to create a truly mutually beneficial long-term partnership with them.
So, now you are armed with the information you need to consider to pursue an international expansion strategy for your company, it’s time to get started! The world is waiting for you!
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Contact John at john.compton@newportboardgroup.com
