Executives need to realize that they cannot afford to undertake international expansion without seeking external advice. In
post-Enron corporate world, buyers need to be more educated about where to obtain advice. In turn advisors, need to face up to increasing barrage of scrutiny from firms and answer one fundamental question. Do I have realistic knowledge, resources, experience and commitment to be able to provide good international advice?There is no better way to raise collective blood pressure of an organization than to encounter all sorts of unexpected problems associated with international expansion. If world is becoming a smaller place, then how is it that many firms still continue to experience unexpected jolts and bumps along way? Like proverbial pedestrian who walks straight into a lamppost that is plain for all to see, executives then ask themselves why they didn’t see this coming. “Perhaps we should have taken advice after all” they tell themselves, “but then again, we sought counsel, and take view that no advice is better than bad advice!”
In post-Enron world this dilemma is a perfectly natural response for a firm that is finding its way on international stage. Executives realize on one hand that they cannot afford to go it alone, but on other hand remain ambivalent about quality of advice they receive. The recent scandals of Big Business in corporate North America have filtered their way down to realm of small to mid size companies world over, stoking engine of client skepticism and rage. Consultants continue to bear image and reputation of borrowing your watch to tell you time and then walking away with it. Lawyers, accountants and tax advisors are called to account on high fees that are charged, and of trying to be all things to all men. Economic and international trade advisors are called to question, either because they are perceived as failed businessmen, or because they simply don’t have relevant and necessary experience.
Shortsightedness can occur easily when a company decides that it can go it alone, and that it knows best. This will in turn create a problem that will give executives really something to worry about on international stage – prospect of failure. Neither will you have all facts and options at your disposal, nor will you have an external sounding board that can tell you how things look from other side of fence.
Ultimately then, success of a company going international is best served by a strong culture that openly welcomes external counsel at outset, and follows basic principles regarding how to go about obtaining that advice:
1.Trust: Good advice starts with those you know and trust. Work your network and spot international talent that can help you.
2.Focus on ROI: Expensive international advice is not necessarily best international advice. Pay by results if you can, rather than time.
3.Challenge: If you are seeking international advice, then by default, person in front of you will have right credentials. Even if you are taking on services of a consultancy or trade advisor, you have a right to challenge background, experience and qualifications of person in front of you. If in doubt, move on and spend your investment money elsewhere.
4.Segment: Be wary of hallowed oracle! Break down advice and guidance you need into its lowest element and closely match type of advisor to your problem. There is a tendency to expect all answers from one single advisor, such as an accountants, lawyers and consultants – they are not able to do that, even if they say they can, at least not on international level.
5.Work around problem: Public organizations are often slammed hard with phrase – “pay peanuts and you get monkeys”. This is a weak excuse for not using these organizations. They have been established with public money to help you, and generally provide a good infrastructure. Throw caution to wind and find out from your OWN experience. If you then have an issue with either an individual or quality of advice you have received, voice issue at a higher level – there will be somebody within organization tasked with putting solving problem.
