Time to expand global reach?
There's been quite some activity on the International email list on what it means to be global and some additional chatter on how the economy is affecting U.S.-based outreach internationally.
I wanted to point to the latest series of videos on This Week in Associations. The first features Project Management Institute CEO Greg Balestrero who talks about how PMI has found success in becoming a truly global organization. He's followed by John Peacock, who leads the Association Forum in Australia (think of it as the Aussie's SAE) and Supratik Bhattacharyya, CEO of Association Management Initiatives in India. The videos were shot several months ago just as the world appeared perched on economic freefall, so they talk more about the how the market opportunities are different in different places than on what the global recession means. Still there is useful tips for organizations that have begun or are thinking of a more global perspective.
The opportunity to penetrate deeper into global markets quickly probably exists now more so than a year ago. But obviously there are barriers. First, despite the talk of opportunity, most associations seek to contract rather than expand in tough financial times. And when the global economy is as bad as it is today, I've heard of trade associations exerting pressure to curtail international initiatives, not just as a cost-cutting measure, but as a protectionist measure.
Watch the videos, and then share your thoughts: what should an association's international role be in such times of economic crisis?
See the other two videos.
| | Permalink |
Comments
The Economist reported in its February 14th special report that for the first time in human history more than half the world is middle-class-thanks to rapid growth in emerging countries.
The IMF and World Bank data show that these same regions have been the economic engine that has led global market success since 2001, and are likely to lead us out of the current downturn as their economies are less leveraged than our’s and have latent domestic consumption that can be tapped. So now isn’t the time to be sitting on the sidelines if you have any dreams of selling products and services around the world.
There is an old saying that “a rising tide lifts all boats,” and the converse is surely true as the current economy has shown. But – are all boats built the same?
Here’s what the great Peter Lynch had to say about our current predicament.
"We've had 11 recessions since World War II and we've had a perfect score -- 11 recoveries. There are a lot of natural cushions in the economy now that weren't there in the 1930s. They keep things from getting out of control.
I would not disagree that corporate bonds look attractive versus money markets. But I would think stocks are more attractive. But you have to have a time horizon further out than three weeks from Wednesday. Even one year, two years is not long enough. I'm very happy and content that five, 10, 15 years from now, corporate profits will be higher and the stock market will be a lot higher.
There are 7,000 or 8,000 public companies. You really ought to know 10 cold. Know their financial position, know what they do. And those are the ones you concentrate on. And when they get to be clearly attractive, then you understand them.
This dramatic decline in stock prices has affected great companies and good companies and mediocre companies."
He’s talking about industry fundamentals. The basics of what makes a good company better than its competitors.
Same is true with associations.
Some represent industries or professions that are in the ascendancy.
Some provide the impetus for globalization to operate as they create and maintain standards, codes and generally accepted practices that are recognized by business, governments and professionals globally. You can’t run a business, perform a function, or run a society without them.
Some are market-focused having long ago adapted away from traditional operation-centric practices that make non-profit culture different than for-profit ones.
Some are less constrained by the burdens of archaic policies and procedures and so have organizational cultures that are more nimble.
What today’s crisis shows us again is the need to manage fundamentals: well constructed value propositions that encourage people to buy even when markets are down, global strategies that are focused on the customer in each region, regional operational planning that ensures you have the ability to scale to meet local needs while providing the right capacity to provide services as demand grows.
At our products and services panel session on Friday during the ASAE IC09, ASME, SHRM, and IMA shared upbeat assessments. They certainly represent boats that are built to take advantage of global opportunities.
If you have a desire to develop a sustainable business aboard, you might find this useful from our session: “A Billion Customers Coming to a Regional Market Near You.” http://growglobally.org/?p=100
Posted by: Peter Turner | March 15, 2009 7:01 PM