Read the full script of Module 3, Episode 6 of the Global Growth Master Class below. Want to get certified on global expansion? Simply click here to access the complete course today.

Building local teams is tough. Although local laws determine employment terms such as severance pay, it is the physical distance coupled with cultural and mindset differences that pose a significant challenge when building and managing a globally distributed team. Establishing trust is harder to achieve when teams are geographically separated, particularly when language and cultural barriers come into play. The human side of international business has changed.

In years past, companies would focus on sending someone from headquarters to a new market in order to launch the business there bringing all the expertise that made the company a success at home to this new place. Who would they send - the “Expat” of course.

This is abundantly clear about one thing. We are declaring War on the term Expat

The idealized notion of an expat pioneering in unfamiliar territory, accompanied by a personal driver and generous expense account, striking lucrative partnership deals, and tapping into the enormous potential of a new market, is an outdated concept and bears little resemblance to the current state of global business. In fact, we are declaring war on the phase and concept of an Expat. The term Expat, besides colonial overtones, is associated with an ivory tower mentality where some from HQ come to a new market to educate them on their great company, often being separated and definitely not having a native understanding of the local market. It is the visualization of a business professional that resides in the financial district at a fancy apartment vs. a culturally curious person as the likes of Troy Malone, Abe Smith, Kathryn Hymes, and other Interpreneurial journeys we profiled. 

It is a combination of an understanding of the local market, understanding and being aligned with the company, driven by the Interpreneurial mindset, with a little something extra added in.

As Troy Malone guided Evernote’s growth in Asia, he focused on the intersection of all these qualities to help the company succeed. His cultural curiosity and Interpreneurial mindset led him to tap into the native understanding his local team had of the local market as he also brought his company mindset to bear. In A local team lead added the context that they were delivering lunch to the very workers Evernote was targeting for its paid products, and a new localized marketing strategy was born dropping marketing materials into the buckets. This a great example of how an INTERpreneurial leader collaborated with the local team to be effective in India.

As you can probably sense, expansion is really about TEAM EFFORT and it's not on one person's shoulder to manage this process alone. This is why we have developed a team-building framework that takes in consideration all the important skills for a team to be successful. This is where the Global Class Team Building Framework comes in.

Regardless of a company’s current hiring practices, global leaders need to consider a unique set of factors when building an international team.

Global Class teams possess the following traits, which we call the Global Class Team Building Framework:

1. Interpreneur Mindset is the combination of agile, company, and cultural

mindsets outlined in an earlier module.

2. Local Knowledge conveys an understanding of local culture (and business

practices) and experience within the local market.

3. Company Knowledge indicates understanding of and alignment with company culture and trust built with HQ.

4. Leadership Skills for Distributed Organizations specifically relate to the requirements for effectively operating distributed teams outside of HQ

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A particularly unique aspect of the framework is that the criteria are used to evaluate a cohesive team, not just individual candidates. As you'll soon discover, it's challenging to find an individual who possesses all four key competencies outlined in the framework. Nonetheless, it's essential to have all categories covered to achieve Global Class status. In reality, for most companies, an individual who satisfies all the requirements is like a mythical unicorn that doesn't exist. However, as Interpreneurs continue to rise in the talent pool, more of these exceptional leaders will surface.

It's uncommon for companies to find individuals who possess traits that cover all four categories (they are probably a unicorn person who doesn’t exist). Therefore, it's usually more efficient to form Global Class teams that collectively have all of these traits among the entire team. These teams are capable of identifying necessary localizations and market opportunities, going through the customer development process to achieve company-market fit, and creating and utilizing processes and structures to generate momentum and attain scale, all while maintaining strong communication channels and alignment with the headquarters and company leadership. These tasks are not for the faint of heart.

Let’s look at each of the groups of characteristics in the Global Class Team Building Framework in more detail:

Interpreneurial Mindset

As previously discussed, Interpreneurs are an integral component of Global Class Companies, contributing to their success. With their adaptable mindset, they can steer the customer development process effectively, their company mindset facilitates communication with HQ to achieve objectives, and their cultural mindset enables them to navigate the local market and identify the necessary localization for finding fit and achieving scalability.

Here are some additional traits that characterize Interpreneurs include:

Agile Mindset—Entrepreneurial

• Grit—Persistent and stubborn, leaves no stone unturned, overcomes obstacles, and never gives up

• Comfort with Ambiguity—Forges ahead in the face of uncertainty

• Openness to Failure—Knows failure is part of the process, takes educated risks

• Problem Solving—Creative-solution oriented

• Customer Development Mindset—Able to wear many hats while working cross-functionally to implement the global agile methodology

Company Mindset—Intrapreneurial

• Strong Collaboration—Cross-border, cross-function, cross-culture; gets buy-in and drives results through others

• Navigate Bureaucracy—Overcomes the complexities of getting buy-in within an established organization with set processes

• Builder’s Mentality—Creates lasting impact, builds blocks to something Bigger

Cultural Mindset—Cultural EQ

• Global Scope—Sees opportunities everywhere, a Global Citizen

• Values Diversity & Inclusion—Seeks different perspectives

• Holds Bias—Suspends beliefs, assumptions, and judgment

• Cultural Curiosity—Open to cultural learning, cross-cultural translator

• Empathy—Sees (and acts on) new perspectives

Leadership Skills for Distributed Organizations

Since teams working on global growth are often dispersed across local markets and headquarters, it is vital for the team members to possess the skills to communicate effectively with HQ and navigate being apart from the power center of the company. They should be able to interface with and influence leadership, while also removing any obstacles in the path towards growth. Module 11 covers several Momentum Builders that address many of these challenges.

Leadership skills for distributed organizations include:

• Strong Communication Skills—Fosters two-way translation between local team and HQ

• Autonomous Decision-Making—Acts independently, tapping into core values, knowing what to get HQ’s input on

• Ability to Influence Authority—Drives change through others by managing up

• High Integrity—Regards truth over self-preservation

• Reflective Leadership—Understands gaps within the team and fills them, emotional intelligence (EQ)

• Removal of Obstacles—Removes distractions and roadblocks to focus the team on traction and growth

• Building of High-Trust Culture—Fosters honesty, transparency, and support

• Culturally Conscious Management—Creates a contingency approach to management that takes local culture into account (described further in the next module)

• Partnership Building—Builds strong, culturally aligned relationships with local team and HQ

Why are these leadership skills for a distributed organization important?

The above-mentioned traits are of utmost importance as local teams work remotely from HQ and still need to have an impact on HQ decision-making while being given the freedom to tailor the product and operations to the local market's culture and business culture. Additionally, the team should possess the tenacity to overcome obstacles and leverage the structures and processes established by HQ to facilitate the global team.

Differences between local business culture and company culture may sometimes create conflicts. Establishing a high-trust culture can help navigate these nuances and cultural conflicts. While not every company may have a leader who perfectly embodies the Global Class Team Building Framework, any company can still assemble a team possessing all the traits outlined in the framework by acquiring skills from the four categories.

Company Knowledge

Since teams growing in new markets have to tap into the resources and structures of HQ, it is crucial for the team to know how to navigate the bureaucracy of the organization to get things done (secure resources, enact changes to the local operating model, and beyond).

Company knowledge traits include:

• Company Values and Principles Alignment—Core value and vision buy-in

• Culture Fit—Embraces the type of environment teams operate in

• Ability to get things done internally—An understanding of the inner workings of the company and how to get things done

• Trust—Established reputation with leadership and/or key stakeholders fostering autonomy

The skills outlined in the company knowledge category pertain to the capacity to accomplish tasks, such as obtaining support for a necessary localization or acquiring more resources for the local market. Although having prior company experience at HQ is advantageous, the ability to accomplish tasks internally is not solely dependent on it. It is crucial to note that company knowledge does not equate to tenure, and it is not more important than local knowledge or an interpreneurial mindset. In simpler terms, it is easier to teach or hire someone to embody the company culture than to master the local culture.

Why is Company Knowledge important?

The Global Class Team Building Framework consists of a comprehensive set of skills necessary for building a well-rounded team capable of managing local offices effectively. However, one particular trait in the company knowledge category, cultural fit, plays a crucial role and has a direct impact on many of the other traits. In the presence of an interpreneurial mindset, cultural fit can sometimes be more important than a fit based on skill sets. Maintaining continuity in company culture across geographies is crucial, and it may be more beneficial to bring in someone who aligns with core values rather than a rock star who does not. A deep connection to company values can also generate the passion necessary to develop the skill sets required for success. This focus on culture and core values can drive companies to be more specific about the skills they want to promote, especially among the leadership team.

This can be specifically designed for distributed teams, like at Zendesk, which outlined four “guideposts” to drive the development of targeted employee traits:

• Drives productivity through access to knowledge

• Cultivates cross-team collaboration

• Overcommunicates—and finds new communication channels

• Automates essential workflows

The principles outlined above can serve as a framework for evaluating potential team members and determining where to invest company resources in terms of processes and structures. Additionally, these guideposts are well-suited for companies with an international presence and can help reduce the complexity associated with localization premiums and organizational premiums.

The objective is to locate a leader who possesses both company and local knowledge, but forming a team with several members who fulfill these requirements can also suffice. It is desirable to have individuals on the team who are wise enough to differentiate between what can and cannot be negotiated with regards to company culture. This can also extend to local culture.

Local Knowledge

Having a strong understanding of the local market, ideally, as a native, is crucial for achieving success in a new market. This includes the ability to recognize and adapt to changes in the operating model, as well as leveraging relationships with potential partners and customers to gain traction. This combination of skills is often essential during the launch phase of entering a new market.

Local knowledge traits include:

• Local Business Experience—Understands Local Business Culture (ideally) at a native level

• Local Language Skills—Multilingual, for Local and HQ

• Local Network—Strong relationships with influencers and stakeholder groups in the local market

• Pride in Local Culture—Passion to drive value in the local market

Why is Local Knowledge important?

Having a deep understanding of the local market is critical for successfully launching a product or service in a new market. This involves identifying changes to the operating model that need to be made and leveraging relationships with potential partners and customers to gain traction. Local knowledge is particularly important for connecting with customers in the new market, navigating local laws, and adapting the solution and operating model to work profitably at scale. It is important to note that local knowledge is not simply gained from visiting a market but requires either being a native or having extensive experience working there. In many countries, building relationships with locals takes time, and it cannot be rushed through a quick localization discovery visit. Furthermore, local knowledge is instrumental in effectively translating the company culture and value proposition to the local market's customers and employees.

The best candidates have the right framing for the market, a strong network of relationships, experience in the market, and relevant expertise. Depending on the market, each of these will carry a different weight. In Singapore, for example, expertise is highly valued, while in Japan the most valued attribute is relationships because of the local business culture. Even knowing these nuances in and of itself is a key indication of the level of local knowledge.

Our research revealed an interesting trend regarding the final trait in this category, which is Pride in Local Culture. While not entirely applicable to everyone, most business professionals who were drawn to working for rapidly expanding international businesses possessed a desire to bring innovation to their home countries in order to address issues and enhance people's lives. They viewed Global Class Companies as a means of enhancing their local communities and had a strong motivation to speed up their progress.

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 3, Episode 7 of the Global Growth Master Class.