Advisory No 4 - REGIONAL STRATEGY - DON'T DITCH THE DETAIL

In the global economy, it is essential that we think about extending our reach.  Our job as leaders is to plan for growth in lucrative new markets whenever and wherever we can.

All too often in business though, we talk about our APAC strategy, our BRIC Strategy or our LATAM strategy. We have big plans and confident budgets but have we thought through the detail?

There are many emerging markets opening up for new products and services around the world and they can represent huge leaps in the growth of our business.  If we skip the detail however, it will have a huge impact on our bottom line with unforeseen costs, delayed revenues and much shareholder concern about how far away we are from those ‘rivers of gold’ we were promising just a few months prior when we submitted the business plan.

What we must always keep in mind is that regions like APAC and LATAM are not places in their own right.  Without exception they are a spectrum of cultures and behaviours with vastly different technical, educational and professional maturities.  No country in a region will automatically behave in the same way as its neighbour and we’d be foolish to plan in that way.  

The mistake of any emerging market business plan is to budget on the region rather than taking time to prioritise, research and analyse the individual markets themselves.  

It’s only by avoiding a generic view and understanding both the commonalities and the differences between countries that we can hope to operate successfully and understand markets so different from our own.

If you are rolling out a new regional strategy, take the time to do your homework, knuckle down on the detail and you’ll watch your business grow step by step with fewer unforeseen surprises.

The Advisory Partnership supports broadcast media businesses with their strategic and operational expansion into new markets. 

www.theadvisorypartnership.com

Advisory No 3 - WHY PROJECTS SINK

The Titanic had a plan to get to New York as fast as possible; sometimes we need to take the time to look at what’s in front of us and make small changes to get to where we want to be.

All too often I’ve come across the directive to meet a project deadline against common sense; research has revealed flaws in the approach and the risks have been clearly articulated but for many reasons we have had to proceed regardless.

Projects in their nature rarely go according to plan.  Their success depends on how quickly and effectively we react to changing circumstances.

As leaders, we must have a clear strategy that takes the long view but we must have checks and processes in place so that we can take effective action when circumstances start to indicate that we are on the wrong path.

Like our luxury liner, our business strategy and our operational projects cannot and should not make sharp turns at the first sign of trouble but continuous fine-tuning of our direction can be the difference between success or disaster.

The Titanic received 5 warnings over 12 hours but kept to course and maintained normal speed in a blind attempt to meet its deadline.  If the ship had been travelling more slowly or on a fractionally different path it would have averted disaster and become a hugely successful travel brand and business success.

Our icebergs are out there.  

Review your position regularly, heed the warnings from your team and your partners and don’t be afraid to change direction when it’s the right thing to do.

www.theadvisorypartnership.com

Advisory No 2 - HOW TO GET AN 'A' IN GEOGRAPHY (PART 2)

The complete guide to expanding your business to new and emerging markets. 

(For Part One Refer http://bit.ly/ZsHi8a) 

   

Location! Location! – Are you in the right place?  In your initial research you should have established the right place for your business but sometimes you need to be fully operational before you discover that you’ve picked the wrong location.  Your concerns may be practical, operational or that it’s just too hard to get out and meet your customers.  If you’ve made a mistake, fix it if you can and fix it fast!  Our customers judge us by our location and a good location allows us to literally bump into clients leading to new business wins and assisting with customer retention.

Make it work – You may have a product or service that has been hugely successful in your own market but you need to be sure that there aren’t regional variations that may completely negate the effectiveness of that product in a new environment.  For example, a hugely successful user interface in Western countries may become ineffective when it is subject to the regulation and censorship restrictions of the Middle East and Asia.  Be prepared that your tried-and-tested product or service may still need to be adapted to cater for the requirements of a new market.

There is no flat world.  Make no assumptions about technology; particularly if you are in a digital or online business.  Public Internet and business connectivity are not a standard experience worldwide. If you are entering emerging markets particularly with a new technology product be mindful that paperwork, couriers and hard-copy media are alive and well due to poor Internet performance in some countries.  Be careful to test the local reality against your marketing proposition.

False Economies.  You may think it’s cheaper to build equipment at home and ship to site but be warned, head office sourced hardware and equipment may incur taxes and customs delays that completely offset your planned savings and can delay your ability to go live.  Taxes in some markets can be as much as 65% of the retail price and your equipment may be tied up for months with hopeless red tape.  This can limit your ability to operate and may sabotage your business plan.

Timeshift – To protect yourself from a disappointed board and shareholders, the smartest thing you can do when entering a new market is to take your best case business plan, push it forward 3-6 months and you’ll probably be right!  The odds are against any plan for a new market succeeding when it is completed from the comfort of head office.  It’s best to be proactive here and spend as much time as you can on location. You will undoubtedly make changes when you are closer to the action onsite.

Growing your business into new markets can be one of the most rewarding things you can do in your career but keep in mind that whatever new market you enter, it’s is not your home territory and as long as you continually compare your strategy against operational reality, you’ll have the best set up for success.

The Advisory Partnership works closely with its clients to provide scaleable operational solutions for their international expansion strategies.

www.theadvisorypartnership.com

Advisory No 1 - HOW TO GET AN 'A' IN GEOGRAPHY (PART 1)

The complete guide to expanding your business to new and emerging markets.

1.     Remember what your mother said, Do your homework or you won’t learn anything. You don’t know what you don’t know, so try to find out everything you can about a new market. Whether it’s an international market or just another State in your home country, you can’t make any assumptions and you can’t be sure that just because you have a successful model at home that it will automatically apply elsewhere.

2.     Phone a friend. Use your contact network to learn about their experiences.  What worked for them and what didn’t?  If you don’t have someone in your network then find a local consultant who can help you understand the market.  If you find a consultant, check out their reputation and references as closely as if they were a new member of senior staff.  You’ll risk a lot of investment on their recommendations so be sure that you’re getting the best qualified advice.

3.     Hire the ‘A’ Team – It may be the same business in a different market but it’s still effectively a new business. You probably won’t have much time to start generating revenue and offsetting your costs so hire the best people you can within the available budget.  Hire people who have done what you do before;  people who are already credible and trusted in your area of operation and who’ll be able to hit the ground running with your product and service.  Don’t be tempted to hire cheap unqualified local labour as they’ll require training and sap your energy as they move along a slow learning curve.

4.     People are stylish – if you are entering an international or emerging market don’t be short-sighted on how your people will operate from day to day.  Employment expectations, language capability, education and culture may all be markedly different to how you normally operate and you will have to make some allowances in your process to ensure that you get the best from your team.  Some teams will require a firm prescriptive management style and others will require a hands-off empowering style.  Your success is dependent on working out which is the right approach and managing accordingly.

5.     Send in a SWAT Team – You have hired some fantastic local talent, and you’ve adjusted some of your process to ensure that you can operate effectively.  Now you must surround them with everything that is great about your organisation.  It’s an extra cost but it’s a worthwhile investment.  Send in an established team from your own business and surround your new team with all the knowledge, passion and enthusiasm that has made your business great at home.  This can’t be a fly-in-fly-out approach.  Give them some time to bond and to really share the essence of what your business is all about. The time and energy you put into helping your new team out now will save you in the long run.

Growing your business into new markets can be one of the most rewarding things you can do in your career but keep in mind that whatever new market you enter, it’s is not your home territory and as long as you continually compare your strategy against operational reality, you’ll have the best set up for success.

The Advisory Partnership works closely with its clients to provide scalable operational solutions for their international expansion strategies.

www.theadvisorypartnership.com