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Knowledge & tools for services marketing & sales

Globalization

Globalization is a hot topic for service organizations today. This is a complex topic requiring volumes to fully address. However I would like to put forth a couple of strategic frameworks to consider as you consider, or re-consider, your worldwide service operations.

Globalize, globalization, being global, global services etc. are all over utilized terms that we hear every day. I like the definition used by Herman E. Daly, a renowned economist. He argues that sometimes the terms internationalization and globalization are used interchangeably but that "Globalization" means erasure of national boundaries for economic purposes. I also agree with the premise put forward by columnist, Thomas Friedman who says that with instant communications, better transportation and cultural integration, the world is becoming flatter.

In services, we tend to say “We are Global…” when we mean that we are only international. Paradoxically when we adopt a product for another region of the world we say that we are “localizing” the product. In the worst case scenario the term “globalization” is used as a euphemism for outsourcing or off-shoring the work force. If you hear your CEO say that they are going to “globalize” operations, make sure that your resume is up to date!

It is time that you start to re-think what globalization means to your company and how to take advantage of a flatter world. Many international service organizations use the “follow the Sun” methodology to provide support resources 24 / 7. The essence here is to have resources available to support customers during prime local business hours and to provide at least emergency support for customers in the off hours elsewhere in the world. A U.S. based customer calling for service after 5 pm in the Pacific Time zone might well be connected to a response center in Asia and so forth. This is an improvement over the days when you might have had to staff 24 /7 in each individual region or country, but is by no means optimal.