Read the full script of Module 2, Episode 1 of the Global Growth Master Class below. Want to get certified on global expansion? Simply click here to access the complete course today.

Welcome to The Global Class Mindset module of the Global Class Masterclass. 

Now in this article, we are going to explore the Global Class Mindset, a mindset built into the DNA of the world’s fastest-growing companies. You will learn about the vision, team building approach, role of headquarters, strategy, view of disruption and effective utilization of two-way innovation, in addition to case studies from top companies like Canva and BlaBlaCar, two companies who have successfully reached global scale.

What questions will this module answer?

We will answer the following questions that are foundational to global growth:

What mindset do companies who are successful at reaching global scale have?

What do and don’t these top companies focus on? How do they think differently?

How do top companies build global teams?

So, what Role does HQ play in expansion for Global Class Companies?

How do Global Class Companies think about the disruption their entry brings to a local market?

Why does what is discussed in this article matter?

The right mindset starts at a company level and must permeate all levels of the organization. This mindset manifests itself in how companies make decisions, the strategies they build and implement, the team they hire and beyond. 

The content in the article is crucial for your global growth initiatives because of the way emerging companies are taking advantage of the situation we spoke about in Module 1 (using the Global Class Mindset herewithin as a catalyst to create competitive advantages). As you are likely well aware, business moves much faster today than in the past, and companies who don’t adapt get left by the waste-side. Case in point, about half of US S&P 500 turnover in less than 20 years, not to mention the countless new entrants to markets who have disrupted incumbents. Moreover, companies who have been successful in one market and think with this validation they can scale globally have lost to local competitors in markets across the world, even with near endless resources at their disposal, because they didn’t take the right approach. 

👉 Click to Get Certified on Global Expansion 👈

Here is what we have seen with companies on their expansion journeys

While companies develop a substantial customer base, primarily in their initial market, a healthy ego often grows in tandem. Companies see their local success as a sign that their product and model works everywhere. This, combined with years of institutional inertia (which often comes if a company waits to expand) leads to the legacy mindset. Even younger fast-growing companies will assume the “Company Way” will work everywhere with the company’s “universal value proposition” and customer needs. Only once a company really gets into the expansion process, often after being present in a few markets, do the true complexity of expansion and gravity of the efforts required to reach global scale skin in.

We have worked with many companies who go on to waste millions of dollars and years of time hiring the wrong team, not approaching localization the right way, and not building the foundation for scale, leading the company to have to pull back, later restarting growth efforts and often not reaching the global scale they thought was clearly in their growth path

From the discussion of Geoffrey Moore’s highly regarded book, Crossing the Chasm in the last module, you know that a similar chasm exists between local success and success in global markets. BUT it’s not a chasm you have to cross just once, like in your initial market, BUT there is a chasm to cross in EVERY country you expand into, AND you must be mindful of cultural and governmental obstacles that aren’t as pronounced as in your initial market.

In attempting to cross this international chasm, companies tend to take two distinct approaches, each on opposite ends of the spectrum. 

Some companies will lead with ego, saying things like “our value proposition is universal” or “we only have to localize this one small part of our business since our product resonates globally.” Walmart did this when it attempted to extend the “Walmart Way” into Germany, keeping the same friendly store culture, low price value proposition (which wasn’t true in Germany given they already had low prices) and other aspects of its American operations in Germany, resulting in the company losing over $1B and exiting the market.

This hubris often leads the company to follow the legacy mindset outlined in this module. The legacy mindset is poisonous. It assumes you can take your proven model and shove it down the throat of every country in the world. This is a losing strategy. We have seen countless examples of companies who go down this path, realizing after much time and money wasted, that a more balanced and local approach is needed. 

The other approach we have seen companies take is to prioritize speed and iteration. Hey, that is what worked when finding product-market fit in our first market, let’s rinse and repeat in the new international markets we launch it. The problem here is that companies aren’t thinking about their global expansion strategy as a whole, singularly keeping each new market in scope to uncover what is needed for traction there.

The problem here is that this strategy breeds complexity. You may not notice it at first, but after the company is in 5 or 10 markets you hit a wall, realizing that you have 5 or 10 distinct go-to-market and operational models to manage that are impossible to create scale around. This leads the company to take a step back, stalling growth, and then going back to re-architect the foundation needed to support scale - also wasting tons of time and money in the process.

By leveraging the Global Class mindset outlined in this module, companies will avoid the problems with these two approaches and will have distinct advantages that you need to be mindful of to compete in both individual markets, and to reach global scale.

So this stokes the question, What mindset do companies who are successful at reaching global scale have?

In working with companies from across the world, we have seen the tendency to build with local markets in mind, with companies being very home market biased. This frequently leads to a centralized talent strategy, resulting in the business being hard-coded for the initial market. It is really this mindset that causes companies to have difficulties in crossing the chasm to international market success. Why? Because of organizational bias, the lack of a global mindset and limited international experience. Then creates a death spiral which leads to a command and control relationship between HQ and local offices, the local offices being forced to adopt the “company way,” exporting the model built at home, where there often isn’t a good fit. 

Instead, we offer up a different perspective, advising companies to think global day one, which completely reframes the conversation within an organization, increasing the likelihood of success for an organization seeking international markets. The result? You build your product with global markets in mind, and hire more diverse and distributed talent, leading to HQ and leadership approaching management very differently as HQ becomes more of an enabler and supporter of local teams, recognizing that these local teams understand the local context and what must be done to find fit in the market. Organizations today need to understand what aspects of the go-to-market and operational models need to be localized and the only way to understand this is being exposed to new cultures and environments, and adopting the mindset the world’s fastest-growing companies use to capture global opportunity and market share.     

It’s also important to note that the Global Class Mindset isn’t just applicable to companies in the early stages of global growth. It acts like a lubricant increasing the speed of growth in companies amidst global expansion initiative, and it helps well-established corporations with a presence in global markets that are looking to further penetrate international markets by breaking through organizational inertia and helping business leaders focus on the true levers that drive global growth.

What risks exist if you aren’t mindful of this aspect of global growth? 

The biggest risk of not adopting the Global Class Mindset outlined in this module is going down the wrong expansion path, losing time and money, and likely failing in the process. You also put your company at risk of eventual disruption from companies who do adopt the Global Class Mindset and use it’s inherent competitive advantages to challenge your place in your existing markets.

After you complete this module you will be able to:

• Understand the difference between the toxic Legacy Mindset that companies that fail at reaching global scale tend toward, and the Global Class Mindset used by the world fastest growing companies to succeed in global markets

• Get insights on how to view team building, strategy development, how headquarters can be a catalyst for successful growth and more

• Learning how Two-Way Innovation is a secret weapon that companies can use not only to penetrate new markets, but to better serve customers in markets the company is already established in

• How to transition from being a legacy minded organization to having international (Global Class Mindset) as part of your company DNA

  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 2, Episode 2 of the Global Growth Master Class.