By Dick Blatt
Globalization is affordable, manageable, and rewarding. The world is becoming smaller much faster than most people expected. We live in a global economy. When Italy made some economic announcements in 2011 that were poorly received, the American stock market dropped more than 500 points. Consider the effects Greece’s recent challenges are having on both the European and American markets.
Many associations are reticent to consider globalization. They believe they lack the knowledge and resources or simply choose not to deal with the cultural, language, and legal differences which exist around the world. Some who do consider globalization may do so for misguided reasons. They believe in a challenging economy they can increase membership and revenues in the short term by going global. Although honorable goals, they are not sustainable for successful, long-term globalization without being part of an overall strategy.
There are four phases to globalization:
- Reaching the decision to go global;
- Developing a plan to go global;
- Implementing the plan; and
- Sustaining the plan and efforts.
Reaching the Decision To Go Global
To better optimize success in considering globalization, a sequence of steps is recommended. The first question to be asked is not, can we increase our membership and revenues by going global, but instead, does our mission translate globally? If the answer is yes, then the follow-up question becomes, is going global right for our profession or industry? Another question to consider is, what if our mission translates globally, but we choose not to pursue globalization? What is the potential impact on our profession/industry and our association? Keep in mind, there may be another competitive organization somewhere in the world today considering or acting upon a global strategy.
From an American standpoint, associations exist globally for similar reasons to those that currently drive their domestic existence. They serve to bring people together to share information and elevate the practice of the industry or profession they represent. Globalization provides some associations the opportunity to continue to serve as your industry’s or profession’s thought leader on an even broader scale, to provide your members access to international markets, to expand education and networking opportunities, or to act upon good ideas for your industry or profession from everywhere in the world to enrich your service to members.
The key is how you define globalization for your association. Part of that definition is what form your efforts will take, to what scale you will undertake them, and over what time frame you are willing to commit to the efforts.
Deciding to go global is a critical strategic decision. It is important to follow a good planning process, identify the objective elements by which you access your opportunity, ensure transparency to all affected stakeholders, and be realistic about the timing of efforts for expansion and the goals you wish to achieve.
Developing a Plan To Go Global
In developing your plan to go global, two of your biggest decisions will be determining the appropriate business model and governance structure for your global efforts.
There are a number of business models available, each of which has advantage and potential challenges. Your business model should be chosen based on both your goals in globalizing and the financial resources and knowledge you have to apply. For instance if your goal is to expand quickly and you have dedicated substantial resources to doing so, you might consider working with an association management company with international offices or establishing your own staff in offices around the world. If resources are more limited, however, you might consider establishing country chapters that you require to be financially self-sustaining.
Regardless of the business model chosen, be sure to establish and document the parameters within which you will operate in others countries. Although each country is different, the more consistent your operational approach is from country to country, the more manageable your global efforts can be.
Remember that good ideas come from everywhere. Whatever governance model you choose to observe for global efforts, be able to act upon good ideas from everywhere for the good of the industry or profession. Decide as early as you can who will sit on your board of directors with strategic decision-making authority for the global organization. It may be better to add international colleagues to your board over time, especially as the association achieves levels of activity and success in different countries. Whatever decisions are reached about governance, make sure the reasoning and the association’s position are clearly communicated to all parties.
In creating your global plan, be sure to identify both the subjective and objective metrics by which you will evaluate success. Be sure to include a long-term schedule for expansion and understand that there are three levels of activity in countries to which you expand: an introductory level of efforts; a moderate level of efforts and programming; and a robust level of programming. These levels of activity need different, but manageable, efforts.
Implementing The Plan
An often overlooked, but pivotally important, consideration is choosing the right people with whom to work in other countries. The success of global efforts depends on the working trust mutually established between you and your international colleagues. Look for people of knowledge and influence who share your vision for your industry or profession and who are genuine in their intent to help your association. Also, the simple act of asking your international colleagues what their expectations are from their efforts to help the association can go a long way toward enhancing your working relationship and it helps to create a more global centric, not solely an American centric approach, to the association’s work.
As a critical starting point in expanding to different countries, make sure you register and maintain control of your intellectual property and trademarks in the countries in which you work or in which you ultimately plan to work.
As you expand from country to country, your plan should include building the capacity to manage the different levels of activity in different countries, as well as consideration of the impact on headquarters’ efforts and staff.
In addition to tracking your progress against the metrics you established, it is important to establish realistic budget and programming goals for a multi-year period from the outset and define expectations for efforts in the country and the parameters within which to work on the association’s goals. In addition to the tracking of efforts by objective reports, the ethical conduct of the association’s business is critical to its long-term global brand building.
Sustaining the Plan and Efforts
The most challenging of the four phases is sustaining the global growth and success of the association over an extended period of time. As board and staff turn over domestically, keep in mind the same will be true globally. Plan to orient and re-orient your governing board and domestic and international staff on a regular basis.
Communications play a crucial role in sustaining efforts. Continually communicate the status of global and in country efforts to all targeted audiences. Be sure to maintain the growth of benefits for domestic members as well as the growth of benefits for your new international members and to communicate those benefits at each phase of your globalization.
Pragmatism and flexibility are keys to long-term success. Continually review efforts and strategy relative to further enhancing both. Learn from everywhere and apply those learnings forward.
Act upon the best interests for your association and industry. It is important to take the first step in going global and there is good reason in our world today for your efforts to be successful in beginning, enhancing, and sustaining your global efforts.
Dick Blatt is president of Planar World Consulting and co-author of A Practical Guide to Globalization for Associations, published by the American Society of Association Executives. He can be reached at dick.blatt@planarworld.net or through his website at www.planarworld.net.