Read the full script of Module 10, Episode 5 of the Global Growth Master Class below. Want to get certified on global expansion? Simply click here to access the complete course today.

How do you foster a healthy dynamic between HQ and local markets? 

Aligning the Four Commitments for Successful Global Growth serves as the foundational step in the expansion process, enabling HQ and the local market to agree on fundamental operating principles. The commitment to these principles promotes trust, educates the local team on company culture, and confirms alignment on vision and resources. By affirming alignment on the Four Commitments, HQ can transition to an enabling role, avoiding the problems associated with a command-and-control management approach and establishing the groundwork for future achievements.

In the GCM Model, the team's adherence to the Four Commitments forms the foundation of the entire bridge structure

To illustrate, when HQ grants an appropriate level of autonomy to the local office, and the local office puts in strong efforts in communication, trust is established. When performance metrics are clearly defined and communicated, the likelihood of achieving established goals increases.

The success of the GCM Model's bridge structure relies on the team's adherence to the Four Commitments, which leads to the development of trust through the appropriate level of autonomy granted by HQ and strong communication efforts by the local office. Effective communication regarding obstacles in local markets and necessary localizations enhances traction in new markets. Balancing localization and complexity through the global agile methodology leads to company-market fit, and resource alignment accelerates growth. 

The Global Class mindset enables the creation of a bridge between HQ and local teams. Through this approach, HQ recognizes its most effective role as an enabler and supporter of local teams, rather than a command-and-control force. By adopting this enabler role and a management style that recognizes and adapts to differences between company and local cultures, HQ can successfully manage a global organization.

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Global Class Companies are transforming the relationship between HQ and local teams by adopting a different management approach. Unlike legacy companies that follow a command-and-control strategy, with HQ dictating orders to local teams, Global Class Companies recognize that local teams are not just mere executors and that managers must engage and empower them in planning and strategy creation. To them, HQ is an enable and supporter of localizations occurring to more deeply penetrate new international markets.

The widespread adoption of distributed work has transformed the traditional concept of "headquarters." The notion of HQ as a physical location, such as a corporate campus or a single building housing the entire company's power structure, is no longer relevant. Today, employees, including top executives, are scattered across the globe due to the growing acceptance of virtual and distributed work. While this shift makes communication more difficult, it also has the potential to create a more equitable work environment, particularly for those who do not work out of a company's physical office space.

The trend towards distributed workforces presents an opportunity for companies to transform the role of HQ into that of an enabler and supporter for localization and traction efforts led by local teams, as discussed in module two. This shift in the nature of work means that all team members, regardless of their location, need to adapt and improve communication and decision-making skills. While HQ continues to establish the company's vision and core values, as represented by the far-left span of roadway on the GCM Model bridge, its primary role is to act as a coach, removing obstacles and providing insights to help the team achieve peak performance. Hiring the right Interpreneurs for each role remains a critical responsibility for HQ, but it must also become a steward of the levers of autonomy.

How to Stop the Us vs. Them Mentality Between HQ and Local Teams

The best way to eliminate (or at the very least reduce control) this “Us” versus “Them” mentality that can fester in global organizations is by taking the proper management approach outlined in this module. Implement the 10 management best practices described below, building a bridge that can withstand rough weather, and be purposeful about establishing all aspects of the Global Class Management Model, from the towers and roadway to the cables.

Don’t label things as “HQ” versus “local.” Canva effectively did this by eliminating any Slack Channels that had “HQ” in its name. Actively highlight cultural differences, and take advantage of the diversity of thought and perspective by leveraging momentum builders that foster two-way innovation - and just as importantly, highlight when best practices and innovations come from local markets. If people a “HQ” think they are the main drivers of innovation and growth, they will develop an elitist mentality. If HQ regularly sees innovation and best practices coming from local markets, the barrier between HQ and local teams will crumble.

Recognize and celebrate the cultural diversity across the organization

Break down geographic and functional silos. Silos are poison to any diverse organization, and especially poisonous to a global organization that must navigate complexities and cultural differences in ways companies with most of their operations in a single country (or across only one region) do not have to. Strip out barriers that separate HQ from local teams, and don’t put HQ on a pedestal as better or even different than local operations. Remember and remind others through repeat communication that HQ must be an enabler and supporter of local operations and their necessary localizations, not a command and control structure calling down from on highan ivory tower.

Even go as far as separating HQ/corporate from the initial market, which we will discuss in an upcoming video in this module.

Removing these barriers will break down any inklings of a “US” versus “Them” between HQ and a local team, and across local teams in diverse geographies. 

How to build trust within a diverse organization spread across a global footprint

After preventing the “us” vs. “them” mentality, next you must intensionally build trust within the organization. 

How do you build trust within your organization to support scale?

Not everyone has the luxury of choosing or knowing the people who are picked to be part of international expansion initiatives. Oftentimes, it's a relationship that has to be built up over time.

Remember the strong team collaboration between Troy Malone and his Indian colleague Anirban during Evernote’s expansion in India? Troy consciously spent intimate time with Anirban, inviting him to his home in Utah in the United States, welcoming him to his family, and surrounding him with natural environments. It’s these simple interactions that generate trust, also emotional buy-in between people. Successful expansion boils down to people and great collaborations come when there is a shared common vision, as well as shared experience.  

Here are some ways to build the trust that is such an important ingredient of high-performing distributed and diverse teams

• Spend time at HQ - Help local team members build company knowledge by spending time at HQ, with the HQ team. Creating structures and norms around this is best. Exposure builds trust

• Expose HQ leadership to local markets - This is the flip side of the exposure coin. When HQ experiences local markets first-hand, building their own local knowledge. It also facilitates commitment to global growth, giving local teams an opportunity to, as former head of Uber and WeWork Japan Masami Takahashi puts it, “fall in love with the local market.” Troy Malone experienced this when he living in his local colleague Aniarban’s home when doing localization discovery in India for Evernote

• Make local teams part of the process - Inviting local team members to be part of the Business Model Localization Canvas exercise can be an effective way to align the business and possible localization strategy. Recall how the BlaBlaCar team had staff they hired in Spain work out of the company’s HQ in France, allowing them to be part of the strategy development process.

• Provide clarity and collaboration on the company’s goals, mission, and culture - When local teams can help craft company goals, and contribute to company culture (like in undergoing a process of universalizing core values, as discussed in the previous module) - they are much more engaged and empowered, leading everyone to feel more like they are working on the same team toward shared goals

NOTE: Don't miss out on the next episode! If you want to continue learning about global expansion strategies and dive deeper into the course material, simply click here to access Module 10, Episode 6 of the Global Growth Master Class