Read the full script of Module 4, Episode 4 of the Global Growth Master Class below. Want to get certified on global expansion? Simply click here to access the complete course today.

The next important question that is key to internal alignment is:

How do I structure internal communication to foster alignment across a global team? 

The success of global teams relies not only on trust, and autonomy but, in particular, effective communication. Communication channels are essential for the team to reach its goals, and clarity is the guidance for the journey. In a global company, communication is even more important due to cultural and linguistic barriers. 

Global Class Companies have a communication network that operates more like a brain with numerous interconnections, rather than a hub-and-spoke model with headquarters at the center. This allows local teams and employees across functions to connect, share best practices, and support each other. 

When managing a cross-border team, Global Class Companies are aware of differences in communication styles that stem from local business cultures, such as the emphasis on hierarchy in Asian business culture or the emphasis on a more democratic management model with direct communication in Scandinavian business culture. Effective communication channels and practices help navigate these cultural nuances to ensure everyone can communicate effectively.

Global Class Companies create robust communication connections between their headquarters and local teams. These connections enable HQ to establish expectations, ensure adherence to core values and goals, and track progress with the local teams.

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Additionally, the communication channels are designed to be two-way, allowing HQ to gather market insights that help with business strategy, resource allocation, localization, and problem-solving for local teams. These two-way communication paths are referred to as Feedback Loops. 

Global Class Companies recognize that establishing effective communication channels is only one aspect of ensuring successful communication. To ensure that communication is effective, proper structures and processes must be in place. For example, at Slack, the GM of South Korea connected with the GM of Japan, utilizing the knowledge and information gained from the launch in Japan to benefit the South Korean market. Cross-team connections like these allow teams to access valuable data from other countries and make informed decisions.

Transparency is key to achieving clarity in communication. Global Class Companies strive to create transparency in decision-making, knowledge-sharing, and progress tracking. Feedback Loops are an effective way of promoting communication and providing clear information.

Transparency and knowledge sharing that result from efficient two-way communication can reduce the conflict between HQ and local teams, saving time and empowering all parties involved.

Establishing Feedback Loops is the key to creating effective communication channels between HQ and local teams

Feedback Loops are established communication pathways that enable a clear, multi-directional flow of ideas and information, functioning as a lubricant to enhance the performance of the company's internal processes and increase its momentum.

Establishing Feedback Loops is key for creating effective communication between headquarters and local teams in a global company. These communication channels allow for a transparent flow of information and ideas, enabling the exchange of market intelligence, problem-solving, and progress updates. Local teams can share lessons learned in the local market with HQ to help with localization and reaching company-market fit, while HQ can communicate core values and share best practices with local teams.  

At Global Class Companies like Slack, processes are put in place to ensure alignment between local teams and HQ, with multiple sources for monitoring engagement and adherence to core values to avoid potential distortions. First, the company ensures there are multiple sources for keeping a pulse on the engagement of local market employees and adherence to core values. If only one person interacts with HQ (which can naturally happen with the local market lead acting as a go-between) this can distort what is truly happening on the ground in the local market.

At its best, the utilization of Feedback Loops isn't meant to impose stricter control from HQ over local teams, but rather to empower local teams to share their experiences and best practices, while enabling HQ to implement those successful practices across all global locations. Feedback Loops helps Global Class Companies gather insights and feedback from throughout the organization, both domestically and internationally. 

While allowing some independence to the local teams is important, Feedback Loops creates a strong communication network that helps local teams avoid duplicating efforts or facing problems on their own, allowing them to concentrate on reaching company-market fit, growing the customer base, and expanding operations. Effective use of Feedback Loops also helps to combat complexity by reducing localization, go-to-market, and operational complexities when entering new markets and expanding, through the effective implementation of two-way communication channels.

While allowing some independence to the local teams is important, Feedback Loops creates a strong communication network that helps local teams avoid duplicating efforts or facing problems on their own, allowing them to concentrate on reaching company-market fit, growing the customer base, and expanding operations. Effective use of Feedback Loops also helps to combat complexity by reducing localization, go-to-market, and operational complexities when entering new markets and expanding, through the effective implementation of two-way communication channels.

Company core values are an important tool to align teams and are vehicles to communicate the company’s strategy and path to global growth.

Clarity of and alignment around core values is fundamental for an organization's success in scaling to new markets

It requires strong leadership and direction setting. A great example of this comes from John Brandon, Apple’s former VP of International. To maintain adherence to Apple's core values, John implemented a set of ten principles, referred to as "JB's Rules for Success." 

These rules were widely known and followed within the company and were displayed on laminated cards that employees could attach to their badges. This clear communication of core principles was instrumental in promoting global alignment and creating a sense of unity within the international team. A former Apple employee even spoke highly of John and the impact these rules had on the organization, even during a challenging time in the company's history.

Here are the Keys to Success with Communication and Clarity

1. Establish appropriate communication channels and platforms (structures and processes, or Momentum Builders which we detail in a later module).
2. Ensure that Feedback Loops across geographies and cross-functionally are set up for fast response and iteration.

3. Safeguard two-way communication. Overcome any local business culture aversion to transparency and share failures while making sure the local team is in the loop about relevant issues.

4. Establish a reporting structure and cadence for all sides to be able to track progress.

5. Assign ambassadors within local teams to give company leadership visibility into what is happening in the market. They should be lower/mid-level employees rather than members of the local executive team to get a more diverse set of opinions with no intermediaries.

6. Leverage core values as a vehicle for communication, clarity, and alignment to get the company moving in the same direction down the path of global growth.

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 4, Episode 5 of the Global Growth Master Class.