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Dax Grant is the CEO of Global Transform and an authority on C-suite leadership. Global 100 CIO, 100 Women to Watch, CREA Global Award List. In today's interconnected world, businesses are traversing beyond domestic borders, capitalizing on opportunities in international markets.
However, in my experience, companies must develop and mature a global operating model to effectively scale across geographies. Implementing this strategic approach ensures consistency, efficiency and agility across all regions whilst accommodating local nuances and complexities. Applying this knowledge across industries, I have discovered a variety of learnings in how businesses can successfully build and mature a global operating model.
I often emphasize the significance of embracing a global operating model for businesses looking to expand internationally. To accomplish this successfully, organizations must focus on developing and refining the operating model that has served them well in previous growth stages. This strategic approach not only ensures consistency and efficiency but also considers the various local nuances and complexities that come with operating in multiple regions.
The foundations of a global operating model are found within the framework that a company establishes to manage its international operations whilst balancing central control with local flexibility. In my experience putting in place the necessary structures, processes and governance needed to operate efficiently across multiple countries and regions takes attention to detail, care and patience. Building this model requires a deep understanding of the company's strategic goals and the specific challenges of each market it intends to enter.
Moreover, the link to the strategic goals must be so evident that employees recognise the link if the transition is to work well. Designing For Flexibility And Consistency Working with a variety of international and global financial services firms, I have found that one of the most critical challenges in developing a global operating model remains striking the right balance between consistency and flexibility. Whilst difficult to achieve, consistency is vital to maintaining brand identity, quality standards and operational efficiency for any organisation that builds out a matured global model.
Most organisations struggle with consistency as they grow and expand, particularly where diversity of regions increases complexity. New Galaxy S25 Ultra Exclusive Teases Samsung’s Ambitious Plans UFC 308 Loses One Of Its Best Main Card Fights ‘FROM’ Season 3, Episode 1 Review: A Terrifying Return To The Creepiest Show On TV To achieve this balance, I recommend that businesses consider adopting a hybrid model that might centralize core finance, IT and strategic decision-making functions to maintain uniformity and control. Meanwhile, I have found that areas requiring local expertise such as marketing, sales and customer relations can be decentralized for adaptability.
This approach enables the company to standardize in the key areas whilst remaining locally responsive. Many of the large multinational organisations are a good example of how local flexibility enhances the effectiveness of a global model. Building A Global Culture We must remember it's not just about processes and systems alone.
Practical experience shows that people are central to a successful global operating model, and therefore culture is essential to success. For a company to thrive internationally, it must cultivate a global culture that transcends geographic boundaries. That's easy to say though tough to build! Moreover, for culture to be effective, it should be rooted in the company's core values, and diversity and inclusion should be embraced, recognizing employees' unique contributions from across regions.
On-the-ground experiences of leadership show that leadership holds an essential position in fostering this culture. Global leaders must deeply understand the company's strategic vision and the cultural dynamics of the regions they oversee if they are to practically drive positive results. Effective communication is vital in building a global culture.
I have found that companies that establish clear communication channels enable open dialogue and knowledge sharing across regions. Regular cross-regional meetings, virtual town halls and collaborative platforms help fix the gap between headquarters and local offices. The consistency of these meetings can be difficult to build in an increasingly virtual world, which is why firms are increasingly retaining a hybrid model.
Navigating Challenges And Pitfalls Building and maturing a global operating model is challenging in practice because of factors such as regulatory compliance, for example, can vary significantly between countries, requiring companies to navigate complex legal landscapes. Additional factors such as currency fluctuations and supply chain disruptions can impact global operations. To mitigate these risks, companies must adopt an active approach to risk management, continuously monitoring the global environment.
Diversifying supply chains, establishing local partnerships and investing in robust compliance programs can help companies navigate these challenges more effectively. Continuous Improvement and Innovation A global operating model is not static; it must evolve as the company grows and the international landscape changes. This is essential for all organisations.
As fintechs and technology growth-led firms in the early-growth stage typically experience the most rapid rate of evolution, it is recommended to focus on longevity when building growth capability through complementing internal knowledge with specialist expertise. Some executives propose that innovation should be a driving force in maturing a global operating model. However, in practice, innovation remains one factor in success and therefore firms should encourage an experimentation culture with agility.
Building and maturing a global operating model is a complex yet rewarding endeavour that requires grit and resilience. It is always good to take stock of the global operating model at least annually to see if it remains fit for purpose. By focusing on strategic alignment, flexibility, technology, culture and continuous improvement, companies can successfully navigate the challenges of international expansion.
With a robust global operating model, businesses can thrive in a dynamic global market and gain a strong long-term marketplace advantage. Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?.
