Three Core Strategies Needed to Go Global

In a 1992 issue of Harvard Business Review, a landmark article appeared titled, "What is a Global Manager?" Written by professors Christopher Bartlett (Harvard Business School) and Sumantra Ghoshal (London School of Economics), the piece soon became a roadmap for executives to follow in designing what the authors called "transnational" organizations.

Twenty years later, Bartlett talks to HBS Working Knowledge about the evolution of managers and multinationals. A lot has changed in the intervening years -- in fact, Bartlett says in many ways we are all global managers, given the geospread of modern business activities.

That said, there are still three core strategies and capabilities that any multinational firm needs to be successful on a world stage:

1. Use worldwide operations to build global scale efficiency. Global companies need to exploit geographically diverse locations to capture minimum efficient scale, Bartlett says. There is no way a company like Ford can compete around the world without being able to leverage manufacturing and other efficiencies.
2. Sensitivity and responsiveness to national differences. Being physically close to the markets you serve provides insights not readily seen from a few continents away .Procter & Gamble developed Downy Single Rinse after observing lower-income Mexican women in their homes devoting large amounts of time and scarce water on washing clothes. The product both reduced washing time and water requirements, and became a big hit in that country.
3. Leverage the world for information, knowledge, and expertise. Most consumer trends do not occur in your home market. "Having eyes and ears around the world is critical, as is having the response capabilities to tap into the best and brightest, wherever they may be," says Bartlett.

Are you a global manager? What capabilities have you learned to deal effectively across country boundaries?

Recommended Reading

• Better Ideas Through Culturally Diverse Teams
• 2 Keys to Successful Global Meetings
• How to Build Markets in Poor Countries