Delegate Decision-Making to Local Management

To be effective, the management of a foreign operation must be given the authority to make important decisions locally. It is impossible to make intelligent, timely decisions about local market conditions from a home office that is ten time zones and 6,000 miles away.

The Need for Autonomy:

Local management is on the front lines and is best equipped to respond to:

• Local market conditions.
• Competitor actions.
• Customer needs.
• Cultural nuances.

The Dangers of Centralized Control:

When the home office refuses to delegate and tries to manage the details of a foreign market, the result is paralysis.

• The local organization cannot respond quickly to opportunities or threats.
• Decisions are made based on an incomplete and inaccurate understanding of the local situation.
• The company becomes slow, bureaucratic, and uncompetitive.

The home office should focus on the high-level strategy and trust the local team to handle the tactical execution. If you cannot trust the management of your foreign operation to make local decisions, the solution is to change that management, not to micromanage them from across the world. This is a key principle for success, as International Operations Require High-Level Management.