The COVID-19 pandemic introduced many companies to the challenges of managing remote teams. It required many executives and managers to adapt and change their management paradigms. For those experienced in managing international teams, balancing “face time” with “screen time” was already familiar territory. As businesses now seek to diversify into multiple markets, they aim to mitigate exposure to a single dominant market. Managers must adopt strategies that align with diverse business cultures and operational environments.
The Pitfalls of Poor Management
A team’s structure can be hybrid, remote, globally distributed, or co-located. Regardless of this, poor management practices can undermine productivity and engagement ( The WellBeing Project / MentorCruise ).
Some managers have misunderstood Tom Peters’ “Management by Walking Around” (MBWA). They equate leadership with physical oversight. This results in “Management by Worker Attendance.” Emphasis is placed on employees being present, rather than on productivity and objectives. Executive teams that operate reactively or in caretaker mode further reinforce this dysfunction by failing to set clear, strategic goals.
Before delving into the priorities for managing international teams, it’s essential to recognize how the following two management pitfalls can undermine efforts to create and manage an effective international team:
- The Micromanager – This leader negatively impacts team morale and performance through excessive oversight. This behavior results in low productivity. It also leads to a lack of innovation and high turnover.
- The Ivory Tower Manager – Engages with employees only to announce strategic shifts or downsizing. In a recent mandate, I encountered a leadership team that surfaced solely to introduce new strategies or downsizing initiatives, causing instability and disengagement. Rebuilding trust required three months of weekly stand-up meetings to re-establish clear communication on operational and strategic priorities.
Lessons from High-Performing International Teams
Successful international teams share three key characteristics, which are equally relevant in managing hybrid teams today.
1. Adapting and Adopting
There’s a reason why companies expand into markets such as South Africa, Ireland, Indonesia, Barbados, or Costa Rica. Whether through acquisitions, partnerships, or organic growth, they establish local operations to leverage regional expertise. However, long-term success depends on fostering a culture of mutual respect. Headquarters may provide corporate, product, and technical expertise, but local offices contribute essential insights into market dynamics and customer behavior.
When IKEA first entered the Canadian market, it initially offered the same products it had sold in Europe. However, it quickly realized that Canadian consumers had different needs and tastes. Canadian homes, especially in suburban areas, were often larger than European homes. Therefore, IKEA had to modify its product sizes to better fit the Canadian market. For example, they introduced larger furniture pieces. They also provided more spacious storage solutions to cater to the needs of Canadian families. This was particularly true for those in suburban areas with more space.
In terms of operational adjustments, IKEA also had to adapt its supply chain and inventory management models. The Canadian market’s geography posed logistical challenges. This meant IKEA needed to tweak its distribution networks. They aimed to ensure efficient stock movement across the vast country. This included building a network of distribution centers to reduce delivery times and offering local store assortments that reflected regional preferences.
2. Leveraging Local Offices for Innovation
International markets are a significant source of innovation (WTO). This can be the result of locally and regionally based competitors and R&D. It can also stem from the need to tailor products or services to the regional market or supply chain requirements. When setting and managing objectives, viewing local offices merely as revenue ~ cost (or cost-saving) centers undermines their potential. Treating them only as a means to bypass taxes and customs duties also limits their ability to drive innovation and contribute significantly to the company’s growth.
During assignments in Mozambique and Indonesia, I observed the impact of local teams. They worked on country-specific deliverables. Their practices drove broader corporate innovation. Recognizing and communicating how these innovations had started in one area was essential. They were benefiting the company as a whole. This was crucial in maintaining engagement and motivation. It affected both these offices and others, which saw the potential for their contributions to be recognized.
Numerous examples exist of mid-sized companies innovating through expanding their operations in new markets. Founded in Trinidad and Tobago in 1924, S. M. Jaleel & Company expanded into various Caribbean markets, including Grenada, where they established a factory in 1963. This expansion led to the development of new products tailored to regional tastes, such as the “Red Spot” brand. By adapting to local preferences and leveraging regional insights, S. M. Jaleel introduced innovative products successfully. These products might not have been conceived had the company remained solely in its home country. SMJ now operates in 5 continents and has developed an extensive range of non-alcoholic beverage products in response to their presence in these new markets.
When setting objectives, it’s vital to recognize the insights from local offices. Innovations from these offices should be incorporated, positioning them as integral contributors to the company’s global targets.
3. Working With the Team
A common shortcoming in international management is the tendency for senior executives to conduct brief, high-level visits to regional offices. These visits are often little more than courtesy calls. Effective international managers understand the importance of balancing virtual and in-person engagement.
When managing teams distributed across Europe, Asia, the Caribbean, and Latin America, I found significant value in establishing the following management cadence:
- Regular Virtual Check-ins – Frequent meetings to discuss and track progress against objectives.
- Strategic In-Person Visits – On-site meetings are centered around operational and business development priorities. They focus on stakeholder engagement and include a more formal review of progress against objectives.
- Extended Working Stays – Instead of limiting my visits to the 24-48 hours needed for on-site meetings, I chose to stay an extra 2-3 days. This allowed me to work alongside the team. This informal presence fostered collaboration. It also established a tangible commitment to the regional office as an integral part of the global organization.
Conclusion
Managing international offices requires more than logistical coordination. It demands strategic leadership that prioritizes mutual respect. It also leverages the innovative potential of local offices and fosters meaningful engagement. As companies expand into new markets, the role of international offices becomes increasingly critical. These offices are not just extensions of the headquarters; they are vital sources of innovation and local insights.
By recognizing and incorporating the contributions of international teams, companies can drive global growth and build high-performing teams. Effective management of international offices involves balancing virtual and in-person engagement, setting clear objectives, and fostering a culture of collaboration. More and more managers have had a taste of this courtesy of working remotely and in hybrid offices post-COVID. Applying these principles, plus an appreciation for local taxes, commercial and labour laws, and we may have a whole new generation of international managers in the wings.
PGTS Inc. 