Benefits of global organizations

My blog might give you the impression that I advocate global organizations. Hmmm..., I think you are right ;) I am writing about global teams, the challenges they face, and share proposals to improve their effectiveness. “But why?” you might ask. Here are the 3 most important benefits of global organizations:

Quality improvement
Standardized processes are easier to monitor, quality issues can be identified on the spot. Team members use best practice sharing to ensure all sites have the same know-how. Once processes are harmonized and know-how is spread, Operations can be setup as 24h / “follow the sun” support without additional labour costs.

Costs reduction
The processes on all locations are harmonized; duplicate structures are identified and eliminated. This generates synergies and reduces costs. Furthermore companies gain transparency with a global chart of accounts. All departments in a global organization are posted with the same accounting rules.

Speed increase
In fast-paced environments processes change on regular basis. A harmonized process needs to be changed once, with immediate effect on the whole company. Furthermore MNC’s save time in re-use of documents, software applications, and other project deliverables.

If you think “sounds nice, but in my company it’s not possible,...”, then please remember, the benefits are due in EFFECTIVE global organizations only. If your organization is not yet that effective, I suggest to follow the blog, take some of my advices, and share your experience with me. I’m sure my blog is an interesting read for professionals and managers working in a global environment.

And a final word: changing to a global setup doesn’t pay back in 6 or 12 months. Usually it takes at least 2 years until global organizations are effective.