Expanding overseas does not mean reproducing every headquarters department in a new country. Nor can every local decision be handled remotely. A workable organisation separates activities that benefit from consistency across the business from those that depend on daily contact with a particular market.
Use three questions to place a responsibility
- Who does the work serve? Direct interaction with customers, employees, suppliers or public authorities may require local availability.
- How much local knowledge does it need? Language, buying habits, business relationships and employment practices can materially affect the work.
- Where can the capability be found and supported? Consider the available talent, reporting relationships and resources, rather than location alone.
These questions apply to individual responsibilities as well as whole departments. A job title such as “HR manager” can cover both group policy and very local implementation.
Keep shared direction coherent
Product strategy, core technology, global pricing principles, capital allocation and common data systems often need coordination at group level. A central team can also provide specialist support that would be difficult to duplicate in every market.
That does not mean headquarters should approve every action. Set the boundaries within which a local team can respond to customers, and revisit them as the operation develops.
Put market-facing capability close to the work
Sales, customer success and local marketing depend heavily on understanding the people the business serves. Local accounting and employment administration also need the relevant market knowledge, whether provided by employees or appropriate external specialists.
A country leader should connect these activities with headquarters. The role needs enough authority to resolve everyday issues, alongside clear routes for decisions that require group approval.
Make shared ownership explicit
Finance might combine group reporting standards with local accounting support. HR might combine a common compensation framework with local recruitment and employee administration. Technical delivery may be supported by a regional team rather than a full team in every country.
For each shared activity, record who proposes, approves, executes and reviews the work. Specify hiring authority, budget limits, reporting expectations and escalation routes. Otherwise, both sides can believe the other owns an important decision.
Design for the next stage
The initial mix of headquarters assignees, local employees and shared support will not necessarily suit a larger business. Review it as customer volume, product complexity and management capability change. Give local colleagues a credible development path and make knowledge transfer part of the plan.
A sound structure combines common direction with enough local judgement to serve the market. It should make decisions clearer for the people doing the work.