Global is Not Global
My discussion with a client normally starts with this question: “You know that we’re global, don’t you?” To which, I will nod my head, and ask, “How do you define global?” At this point, the client usually rolls his or her eyes like, “whatever”. I will then smile, and say, “I am amazed at how differently my clients define global. Let me tell you some patterns that I see.” At this point, we can usually have a good conversation about three points of difference that I find in the definitions of a global organization, and why they matter to corporate performance.<br /><br /><strong>Regional/Global Planning: </strong>Companies need to know how to make a decision. This is a building block of planning and S&OP. Different organizational structures have differing governance systems. The worst ones are not clear on how to make a decision, creating infighting between the regional and corporate teams. The best have defined how to make decisions. For Johnson & Johnson, the regions have the power. While for Procter & Gamble, there is a clear cadence between regions and corporate teams. It is clearly defined. For other, less fortunate teams, they have to scrap it out, unsure how to make a decision.<br /><br /><strong>Product Platform Management: </strong>Every company struggles on how to recognize regional preferences within a global platform. Again, the definition of regional/global governance is critical in this decision-making process. Companies without a clear process for decision making will see the gradual creep of products into the portfolio with an adverse effect on costs, inventory and customer service.<br /><br /><strong>Talent and Career Paths:</strong> Wage rate comparable salaries vary in different regions of the world, as well as the cost of living. To have a global team, companies have to forge creative human resource strategies to ensure that there is enough cross-movement within geographies to understand the larger business issues while maintaining the integrity of the human resources payroll systems. Each company has crafted its own strategy. With the current mid-management talent gap, companies are going to need to get very creative.<br /><br />The evolution of global supply chains occurred in the last decade. The processes are still being defined. Employees that have only worked in a singular company do not realize how differently companies have defined global until they engage in a discussion. Each company has defined it differently. Global is not global, but to understand the differences, you have to be willing to ask the simple question: “How do you define global?