International Operations Require High-Level Management

Managing foreign operations is an extremely complex and high-stakes job. It is often more difficult than most domestic general management positions. Delegating responsibility for international markets to low-level management in the home office is a recipe for paralysis and failure.

The Complexity of the International Role:

• High-Stakes Decisions: The decisions that must be made are significant and strategic, including developing new products, building factories, negotiating joint ventures, and setting pricing.
• High-Level Relationships: International managers often deal directly with the presidents of large corporations and high-level government officials. Opportunities to embarrass the company abound.
• Cultural and Legal Nuances: Each country has a different set of laws, a different culture, and different business practices that must be navigated.

The Danger of Low-Level Management:

When responsibility is delegated to a low level in the home office, the typical result is micromanagement based on a flawed understanding of the local market.

• Individuals who don't understand the market try to call the shots on pricing and promotions.
• They try to force foreign operations to conform to "the way it is done in the home market."
• The local organization becomes paralyzed as it tries to deal with impossible demands, and competitors begin to steal orders while internal debates rage.

The development of foreign markets requires experienced hands. If you can't trust the management of your foreign operation with a high degree of autonomy, you need to change the management, not micromanage them from 6,000 miles away.