Think Globally, Act Locally

Jun 1, 2009 12:00 PM Michael Roth, mroth@rermag.com There's an old saying which, I believe, goes back to the 1960s: think globally, act locally. Its meaning is pretty obvious when you think about it from an activist perspective. It could certainly apply, for example, to the environmental consciousness that is growing on a universal level nowadays. Think globally in the sense of understanding that there are global consequences to our actions and that environmental pollution is a worldwide issue. Pollution spreads through the air, through the water and something that happens across the world affects us here and vice versa. But if you want to do anything about it, act on a local level. You probably can't do much about industrial pollution in Norilsk, Russia, but you can do something about the environment in the city, town or community you live in. There is a business application to that phrase as well. During a recent interview with Tim Ford, president of Genie, he talked about the company building a manufacturing plant in China and his philosophy that to build products for the Asian market, they need to do it by thinking about the applications and culture in that part of the world. What do they use boomlifts for? What are their habits and cultural preferences, what issues do they face on construction sites? An understanding of these questions will help a manufacturer design a product for that market, not by making a boomlift in the United States and exporting it and saying here it is, use it the way we tell you and get used to our design; but look for what kind of design fits their needs and training best. Get down on the ground in that market, learn about it and figure out the best way to manufacture for their needs, not force them to adapt what we make to their environment. The same philosophy would certainly apply to a rental company expanding internationally. For example, Hertz Equipment Rental Corp. has begun a branch in China and, Gerry Plescia, HERC president, told me in a recent interview that most of the HERC management team in China are Chinese with relationships in the very area they are doing business in Shanghai. It's not just here's the way we do things, do it the way we do in New Jersey, it's what is the most effective way of doing business in your business environment? What is the best way to communicate with local customers and what are their expectations of a rental company? The same basic principles can be applied to doing business anywhere, even in markets relatively close to home. If you are based in Dayton, Ohio, and want to establish a branch in Akron, have some people from Akron developing the company there. Doesn't mean you don't want to send some people from the main office to help out or even to manage, but make sure you hire people from the local market to be part of the team. They will know it better and they will have relationships, and this is still, above all, a relationships business. The business culture is unlikely to be significantly different, but there are certainly subtle differences. There may be big differences in ways of thinking, in regulations, in expectations.

Ask anybody in Houston if there are cultural and business differences between Houston and Dallas? Only a few hundred miles, but, culturally, a world away. How about L.A. and San Francisco? Completely different. And beyond those differences, as we all know, there's the challenge of establishing relationships. In the rental business it all comes down to knowing your customer what does he rent, why does he rent, when does he rent, what products does he like? To grow market share, everybody wants to get more revenue out of existing customers as well as finding new ones. If you don't understand the varying needs of those customers, how can you get them to rent more? Maybe failure to really know customers is one reason rental companies so often just go for the quickest discount. This customer wants mini-excavators, that's all they ever wanted, that's all they are ever going to want, so I'll discount even more so they only gets the machines from me. But maybe you don't know the different needs that customer has or what his main concerns are or that he might gladly pay 10 percent more if you delivered or swapped out broken down machines on time. Having a global perspective enables us to learn from people all over the world. But narrowing it down to the local is essential in making a business grow.

Why businesses need to think global, act local

In todays global markets, the think global, act local philosophy has more relevance than ever for the owners and directors of small business, particularly in Australia.
26 Aug 09 | David Thomas One of the greatest influences and opportunities for business and investment now and for the next 50 years or more will be the emergence of the BRIC countries specifically Brazil, Russia, India and China, but also known as the Big Rapidly Industrialising Countries of this century. Just as Britain grew to dominance during the industrial revolution of the 1800s and the US during the 1900s, this century will, and is already seeing, the emergence of the BRIC countries as the dominant economic players. Most economists agree that over the next 30 years (if not before) China and India will overtake America to become the two largest global economies, with Russia and Brazil not far behind, not to mention the rising economic influence of emerging regions such as the Middle East, South Africa, East Europe, Latin America and South East Asia. Its going to become increasingly important for all business leaders, entrepreneurs and owners to properly understand these new countries, so that deciding whether or not to do business with these countries is a considered, rational progression not a blind leap of faith! Each of the BRIC and other industrialising countries is combating the current global economic slowdown and the collapse of their exports to the developed world by focusing on any or all of the following: Stimulating their local economies by investing in infrastructure, transport, industry (particularly IT), housing and the environment. China and Brazil have already announced stimulus packages of over A$900bn and A$500bn respectively! Encouraging domestic consumption by offering a range of incentives, discounts, tax breaks, loans and other measures to increase the sale of domestic and foreign products and services. For example, passenger car sales in China, a common barometer used to measure the health of domestic consumption, rose 48% in June 2009 compared to the same month in 2008. A sharp contrast to the experience of the more developed countries. Trading amongst themselves. In 2009 we saw the announcement of major deals between China and Russia (providing access to Chinese capital in return for supplies of Russia oil and gas), China and Brazil (Brazilian exports of iron ore and commodities) and India and Russia (energy and aircraft).

Australian small businesses compete in a tough, small, complex, competitive and geographically challenging environment.
Whilst these countries are building the first classhardware such as roads, railways, airports, buildings, waterways, bridges and tunnels, to support their rapidly industrialising economies, they also need software(i.e. the professional services, training, education, technology, creativity, design and leadership) that makes the difference between "third world" and "world class". Its in these areas that Australian businesses of all sizes can derive the most opportunities. Australian small businesses compete in a tough, small, complex, competitive and geographically challenging environment. To survive, succeed and prosper we have to be dynamic, entrepreneurial and creative, and we have to offer products, services and expertise that are amongst the best available anywhere in the world. However, whilst many of our credential and capabilities are the envy of the developing world, we often lose out to the US, UK and Europe when it comes to playing the global game of investment, trade and exports. You dont have to be a big company to succeed offshore. In fact, you can tap into many opportunities in emerging countries without leaving home. The starting point is to become more aware of whats happening offshore, what skills, services and expertise are in demand globally, how different countries operate and how you can participate without taking your eye off the ball at home. There are amazing opportunities for Aussie small businesses to get involved and 'think global, act local', and in future articles, we will explore some of these. I hope to open your mind to new ideas and possibilities. You even make you some money!

In the meantime, be sure to give us your comments, feedback and suggestions so we can share the exact information you want and enable your business to take part in the new global game. For further reading, check out my presentation from Flying Solo Live! called Follow the money to global opportunities.

Think Globally, but Dont Forget to Act Locally

We all know that the Internet is a powerful global network able that can reach remote customers, but what does this mean to a business that wants to sell something to the person down the street? Maybe not much if you believe a good sign is the best way to reach the local buyer. But a sign is very limited in providing details about your offerings or value points, so are you hoping they will stop by and pay a visit? Everybody has plenty of spare time and all of our target local buyers will stop in regularly to see what we have to offer, wont they? Dont count on it! People dont want to spend all afternoon driving around asking questions. They expect instant answers, a mouse-click away. Also, new businesses come and go, and old ones expand or change their direction so who has time to keep on top of these facts? The Yellow Pages? Not likely since the paper versions of the phone book is quickly outdated and it is not the best option to inexpensively elaborate what you have to offer. Enter a new player, the search engine web sites. They are investing in a new web service by developing local directories where an Internet user enters a search keyword and location or Zip code to find a local business instantly. Along with address and phone listing are maps, directions, links to the businesses web site and even related sites. A local search engine directory will provide a lot more then you can get from a Yellow Page listing, and information is as current as the business cares to make it. Businesses big and small: Pay attention, for this is one development you shouldnt ignore. Most businesses have at least some local customers and likely could use more, so if listing in the phone book made sense in the past you will like this even more. If you have a local phone listing or are listed in a Yellow Page ad, then for little investment you can expand your web site to make sure it has local search information. First, lets review how the search sites are making this a different experience. You may be very familiar with the major search engine sites like Google, Yahoo! or MSN and find them a useful tool for a range of needs like researching a new purchase or finding answers with homework questions, but would you use it as a replacement for the Yellow Pages? Maybe not today, but this is something these search sites are trying to change. Both Google and Yahoo! are working on local versions of their search engines tools to help users find a local business that sells or services by matching their offerings to related search keywords. These new services are in the early stages, where Googles local search is in test mode only and planned for release later this year. Will search sites like Google replace the classic Yellow Pages? The key advantage they have over the traditional way of looking up information for a local business is their reputation as an effective utility for finding things that are highly relevant. The search function has become one of the Internets most commonly used and relied on tools. Its becoming embedded in the culture of Americas youth and yet still reaches a broad range of audience acceptance. It is also one of the most profitable Internet based businesses and has become a big industry. Over time, search sites will be the most common method people will use to find local businesses. So what should you do to prepare for this change? Begin by ensuring your business web site is visible by the major search sites. There is plenty of free advice about what you need to modify in your web pages to achieve good visibility. The more competitive your on-line world is, the more this will cost you in marketing investments, but if you enjoy little local competition then some simple tasks will be required. First, check out your existing status in the test site of Googles local directory (go to http://local.google.com) and enter your business name. Does it come up at the top of the rank? If not, make sure your web sites home page contains your business name. They are pulling the basic address and phone numbers from public listings and web sites like www.switchboard.com that have long compiled this information for their directory. Next, search on a phrase that defines your products or services related to your business, for example windows computer if you are a computer reseller and enter your town and state. Does your business show up in the top position again? Try a couple of other related phrases to see if they too show up in the top rankings. One thing you will notice is the listings are returned not in alphabetical order, but in a seemingly random selection. No, this is not a mistake, but a design of the search engines to rank sites in terms of what they believe are the most relevant web sites. Having a business that starts with triple

As will not have precedence over Zs. With search engine sites you must earn your ranking other ways. It is in this area of free searches that the search engines will go way beyond the capabilities of the classic Yellow Pages or even the on-line directories like Swichboard.com or Superpages.com. People can enter a wide array of search terms and land on the businesses that best fit their specific needs. This will require your web site to have some of the basic search engine optimization techniques to highlight your particular niche. If people are unfamiliar with your companys name they will use terms like kosher deli or cowboy boots repair to find the closest business to their location and needs. From the listing they can link to your web site or competitive ones and begin the process of getting to know your business better. They start the process of becoming a qualified customer even before entering your front door. As the search engine web sites work to develop more local relevance to users, make sure your web site is tuned for your local market. Start with simple web site check ups, like ensuring your business address information is there. Then, associate regional names to target search phrases in your web site to attract random free searches, for example, instead of the title Welcome to our Country Inn use the phrase The Country Inn in Woodstock VT in the Green Mountains of Vermont for your web page title. This will bring people to your web site and your business that didnt know you were in the neighborhood. The search engines have been great at allowing small businesses to be seen as big players in the Internet, but dont forget that a lot of business begins at the grass roots.

Why Think Global, Act Local is no longer enough

Think Global, Act Local, commonly referred to as Global-Local or Glocal, is more than just a tagline describing the cross-border pollination of ideas and products of todays global economy. It was originally used as a rallying cry for people to consider the health of the entire planet and take action in their communities. Today, it takes on a much broader contextfrom environmental, to public policy, to businessmany have even embraced the Think Global, Act Local mantra as the philosophical foundation of running a successful global brand. But why exactly are political pundits and global economists drawn to the ideals of this ubiquitous framework? Does it really provide the context for which organizations and businesses of all sizes can respond to rapid shifts within our economies of scale? From my point of view, up to now, Think Global, Act Local has only scratched the surface of this tremendously complex issue. What we need now is a 360-degree view of how we can best prepare businesses for sustained, long-term profitable growth. What we need now is to Think Holistic, Act Personal. Global vs. Holistic Simply put, global is too broad and undefined. It implies that we should standardize and lead from the center, so that we can better drive efficiencies that meet the burgeoning demands of local markets. This is in stark contrast with thinking holistically, which I define as the ability to take into account complex linkages and inter-connections in order to facilitate decision-making of the highest order. It is no longer enough to think global, we must:

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Gain appreciation of the world at large, and in turn, know how to best position organizations to win the supreme jackpot of sustained profit and growth Capture interlocking elements, interdependencies, and synergies of the commercial environment.

After all, with brand as the pathway to value and gaining the recognition organizations deserve in the marketplace, what better way to drive that distinction than by thinking holistically about business? Local vs. Personal Similar to thinking globally, acting locally does not touch upon the essence of human behaviorwhat we do or dont do in response to change, challenge, and the status quo. Acting personal, however, mirrors human dynamics and the multi-dimensional profile of each individual. Act personal allows you to engineer communities, making messages and actions a relevant and timely response to the big picture needs of people. At Deloitte, we see the benefits of acting personal in our social media efforts every day. Addressing the individual concerns and aspirations of our stakeholderstalking to them about what they really care aboutdrives the engagement to boost client and employee satisfaction, retention, profits, and multi-stakeholder advocacy. It has the capacity to not just act, but to deliver happiness with each experience. Thinking holistically about the recent tragedy that occurred in Japan last week, we can't forget to consider how one tsunami has caused nearly half of the world's most developed countries to reassess their nuclear strategy. The need to act local must be replaced with the need to act personal in order to go beyond action in our communities and address the specific needs of human suffering and post traumatic stress. Share with me your thoughts on Think Holistic, Act Personaltweet me @lgallardo or post a comment below. Do these terms help sustain growth and eradicate major challenges such as poverty, education or sustainability related to business or the environment?

Luis Gallardo is the Managing Director of Global Brand & Marketing at Deloitte Touche Tohmatsu Limited. He believes that Think Holistic, Act Personal is the key to helping businesses succeed in todays global economy.