If doing business in the U.S. is like playing a game of checkers, then the global marketplace is more like playing a game of chess. To win, you have to think through a complex strategy and deal with more moving parts.
Different time zones, language barriers, cultural nuances, and profit repatriation make global projects much more complicated. If you don’t know how to overcome these barriers, you face a high risk of project failure.
Before embarking on a global project, it’s imperative to prepare for every element beforehand. Here are five strategies for successfully boosting your global presence:
1. Appoint a Project Manager
Your employees are used to juggling multiple projects at a time, but adding a global project means potentially extending the business day to 16 or 18 hours due to time zone differences. This can leave any employee working on the project stretched too thin.
At our company, we appoint a dedicated project leader who lives and breathes the nuances of the global account to prevent burnout. Right Management’s recent survey on global leadership trends found that 42 percent of managers fail when they’re sent abroad due to a lack of suitable training, so make sure your project leader is adequately prepared.
2. Select a Team That Enjoys Globe-Trotting
If your team members have to apply for their first passports before taking on a global project, you may not have the right people in place. I know a company that made a strategic acquisition overseas, but the leaders only considered functional expertise when staffing the integration team. They were seasoned executives in their respective disciplines, but they faltered because they didn’t have a strong cultural understanding of the market or any passion for the assignment.
You risk failure if you don’t have a dedicated team that’s excited by the prospect of international travel and has a strong understanding of cultural differences.
3. Cultivate Global Partnerships
When you first enter a new country, you may not be able to distinguish every challenge that requires preparation. That’s when having local partners on your side comes into play.
McDonald’s experienced a rocky start in France, but it has thrived under the guidance of Jean-Pierre Petit, the founder of a successful French ad agency. Petit has been instrumental in pushing McDonald’s to adapt to French customs and the local palate: adding baguettes and French cheeses to the menu, offering table-side service, adjusting the ambiance inside the restaurants, and changing the background of the company’s logo.
Like McDonald’s, you may need someone with insider expertise to help you customize your product to a new environment. Having a partner with native knowledge will save you a lot of time, money, and frustration.
4. Prepare for Cultural Differences
Understanding what’s considered proper behavior and which interactions carry a lot of weight is key to building strong relationships overseas. There are many cultural subtleties that can define your success when dealing with potential partners and customers.
For example, social etiquette plays a big role in how you are perceived in China. Professor Jonathan Story describes the Chinese concept of “face” as “a mix of public perception, social role and self-esteem that has the potential to either destroy or help build relationships.”
In China, you can impress locals by displaying even the simplest knowledge of Chinese customs, such as learning how to use chopsticks, offering your business card with both hands, and showing cultural sensitivity. Subsequently, you can lose face by insulting someone in public, refusing invitations and gifts, or demonstrating a lack of self-control.
5. Plan Ahead for the Unthinkable
Making contingency plans for global projects is a must. It’s difficult to just “wing it” when your team is spread across the globe.
Of course, you can’t predict everything that could go wrong. For example, a labor dispute created gridlock at U.S. seaports, causing problems worldwide at an inopportune time. Chinese New Year celebrations usually involve lots of shopping and celebrating, and businesses that were relying on the stuck containers of trinkets and food for the festivities lost out on a lot of money.
No one expects shipping to suddenly stop, but planning for the unthinkable can keep you from scrambling for a last-minute solution. To combat a fry shortage, for instance, McDonald’s loaded 1,000 tons of fries onto a plane bound for Japan.
There are a lot of logistical factors that come into play with a global project, but a deep understanding of the culture is just as crucial. Your numbers might be flawless, but success depends on your ability to connect on a human level. If you prepare for both logistical and cultural differences, you’ll be guaranteed a checkmate.
Jason Popp is the executive vice president of international at GES, a global event marketing company with a long history of connecting people through live events. With more than 20 years of global leadership experience, he is able to seamlessly combine operational and direct P&L management with rigorous strategic thinking.
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