Read the full script of Module 8, 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.

So we’ve established that localization is essential to gain traction in new markets, but that you have to manage the complexity that comes with these localizations. But what is the best way to facilitate the localizations required to get traction and grow in local markets? How do you operationalize the Localization process?

Even with a playbook that ensures that learnings are shared within the organization, enabling you to develop brain trust, someone or some team needs to manage this playbook and support local teams as they execute the strategy developed for that market. 

The Localization Resource Team (or LRT) can help. The LRT is a team composed of members from various work functions and departments with the goal of removing obstacles and implementing best practices to create momentum. Ideally, the LRT should have representation from different areas to ensure a cross-functional approach and would be filled with Interpreneurs, who are passionate about local markets. 

The LRT works closely with the local team to facilitate communication of key learnings and implementation of localization. Through this collaboration, best practices are aggregated and shared across the organization's global footprint. Within the HQ side of the diagram, each smaller circle represents a member of the LRT who is part of their respective department's reporting structure but comes together with the cross-functional team to represent their department and assist the local teams in their areas of expertise.

The Localization Resource Team (LRT) acts as a mediator between HQ and local teams but is not meant to dictate local teams' actions. Rather, it serves as a hub for sharing localization ideas and addressing issues. With representation from various work functions and departments, the LRT acts as a brain trust, leveraging its knowledge to help the organization successfully enter new markets. Its role is to facilitate decisions and offer guidance, not to make them. The LRT is also a natural owner of the Global Growth Playbook described in the previous video. 

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In practice, if a local market lead encounters an issue that can be best addressed by HQ or requires a specific aspect of the go-to-market or operating model to be localized, they can approach the LRT. Rather than spending time researching how to develop a new feature to localize the product, they can present the request to the LRT, which can then take charge of the task as a trusted partner in the organization.

The members of the LRT should possess the knowledge and skills to complete tasks related to localization more quickly and effectively than the local market lead. By taking on such responsibilities, the LRT can alleviate the burden on the local market lead, allowing them and their team to concentrate on more critical objectives such as discovering novel insights, gaining momentum, and achieving company-market fit.

Here are four simple benefits of a Localization Resource Team (LRT)

- LRT can provide tactical support and help remove obstacles so that the local team can focus on finding company-market fit and gaining traction. 

- The LRT enables effective Feedback Loops by conveying the core values from HQ to the local teams and interpreting important feedback from local teams to HQ. As members of the LRT communicate regularly with both local teams and HQ, they have a deep understanding of competing priorities and potential conflicts that could hinder the organization's growth.

-The LRT also plays a crucial role in creating momentum by facilitating effective decision-making and understanding the competing priorities of both HQ and local teams. The team members serve as a bridge and buffer between HQ and local teams, allowing for well-rounded decision-making and balancing organizational trade-offs. The LRT acts as the glue that holds a globally distributed organization together, keeping disparate teams focused on the same goal.

- The LRT can provide executive leadership with visibility into the progress of the global growth initiative and insights into specific localizations. Instead of needing to go to each function one by one or investigate things country by country, leaders can go directly to the LRT to gain insights, status, and answers to questions

Now, let’s talk more about HOW to implement an LRT in your business

First and foremost, assigning the RIGHT functional team members with the RIGHT mindset to the LRT is a critical component to its success. Effective LRTs are comprised of interpreneurs who possess a balance of cultural sensitivity and curiosity. They have the capacity to identify the necessity for localization through empathy, along with the agile mindset and resilience to navigate the existing organizational structure to accomplish their goals. 

The members of this team act as internal advocates, evangelists, and salespeople for global growth initiatives. They secure executive buy-in and act as cheerleaders to motivate all parties who are involved in international expansion initiatives.

The LRT should comprise representatives from various departments that are relevant to your industry and the capabilities of your local team. For example, sometimes initially it’s faster to have local teams being in direct contact with certain departments in case they have strong connections/links to team members in them. But generally, an LRT would consist of the following roles: [IMAGE: Build left side of LRT] target customer, and product type (physical or digital). These departments may include Product, Engineering, Manufacturing, Sales, Marketing, Supply Chain and Logistics, Legal, Accounting, Human Resources, and more. 

Each team member (who can be either part-time or fully dedicated to the LRT) is designated as a Single Point of Contact for their specific functional area, ensuring that all key functions are represented and that there is clear communication and coordination across the organization.

The LRT can be likened to Mission Control in a NASA space mission in certain aspects. Like how Mission Control assists the astronauts in space, the LRT supports team members in-market by empowering them, addressing issues, and waiting for vital signs. When faced with problems, LRT members take an active approach to finding solutions.

The project manager is a key member of the LRT. They act as the primary point of contact, coordinating the involvement of each department and facilitating communication between local teams and the executive team. Each department then operationalizes the launch plan, with local teams executing it
The LRT's success is heavily reliant on executive support, especially if a company doesn't already have an international team or a head of international. If an executive-level champion is not available, seeking external executive sponsorship may be necessary. However, having an executive champion doesn't always guarantee a strong focus on international growth efforts, as they may have competing job responsibilities. 

According to Kathryn Hymes, the former Head of International Product Expansion at Slack, having dedicated executive support is crucial, preferably with multiple executives involved

At Slack, there were two cross-functional teams dedicated to international growth. The first team, similar to an LRT, focused on executing plans rather than strategic design. The second team, called the “International Council,” was comprised of executives responsible for product, marketing, and operations, who guided strategy and delegated responsibilities to the LRT. 

This group of executives provided valuable guidance and oversight for major tasks required for market entry and growth. They also asked critical questions such as how marketing should describe Slack's product in Japan. The International Council managed communication with C-level management and the board of directors, and delegated tasks to the LRT and local teams.

An important thing to be conscious of, however, is that having a centralized strategic team like this can make the International Council a command and control mechanism for local teams, which is the opposite of the Global Class Mindset. The preferred scope for this strategic international council should be to provide guidance to the international team and local teams and be an enabler and supporter of the localizations that are critical for local success. 

In the event that issues arise, the LRT can function as a virtual support center, providing assistance to teams worldwide. It is critical for the LRT to identify and monitor these issues because [IMAGE: highlight A&B] (a) the local team is primarily focused on the actual launch, and (b) the local team may not recognize which insignificant things could escalate into more significant issues later (resulting in accumulating localization premium) - this is because the local team may be encountering an issue for the first time, but once the LRT has overseen numerous launches, they can identify potential issues with greater ease and resolve them before they become significant problems.

Additionally, members of the LRT possess knowledge regarding areas where changes are not possible. They act as protectors of internationalization efforts and are aware of the boundaries for what can be altered and what cannot due to operational intricacies, adherence to core values, or other reasons. This can help control complexity.

The Localization Resource Team can aid in diagnosing the root cause of a company's struggles in achieving market scale by utilizing knowledge and best practices garnered from various global market entries. To identify why the company is not gaining traction or reaching scale, LRTs can employ Feedback Loops, which are a crucial tool. This also helps the team to recalibrate their market strategy by providing a channel to bring to light key issues and obstacles.

There are various schools of thought regarding the lasting nature of a Localization Resource Team (LRT). In some cases, it is advisable to establish a team prior to launching and subsequently reduce its size once market traction has been achieved. Conversely, if the plan is to expand into multiple countries, it may be more practical to maintain a permanent team. This was the case for Uber, which executed an extensive expansion campaign that necessitated LRTs focusing on various markets. 

Therefore, it made sense to dedicate company resources to supporting new regions by maintaining a permanent LRT. Uber's launchers in each market formed strong bonds early on and provided peer coaching to one another, rather than relying on a formal LRT structure to overcome obstacles.

In addition to helping with market expansion, the LRT can become an enabler of Innovation as a company’s global presence matures

In a sense, the LRT can transition into an IRT - an Innovation Resource Team, that can help foster two-way innovation so that best practices from a local market can be leveraged in another relevant market.

Sometimes an LRT does not have to be built from scratch. In fact, you may have existing structures built in your organization that can be “converted” to support international growth. Take the e-commerce logistics company ShipBob, for example. As the company looked to accelerate international growth, they realized that they had to prepare the organization by building internal mechanisms that could be a foundation for the company’s ability to support scale and local team needs.

Internally, they had an innovation team that they sought to leverage as the LRT as localizations can lead to significant innovation for the company as they spot patterns across an international footprint. As we say at Global Class, innovation is an international affair and the LRT can be the catalyst for building an innovation enterprise, driving two-way innovation.

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 8, Episode 6 of the Global Growth Master Class.