Doing business in Europe
It is common knowledge among executives who have managed (high) growth companies during the start-up phase or who have managed M&A, divestment or restructuring processes that speed is a key challenge. As it has become apparent that focussing on speed only is not enough, there are the following other key challenges that should be addressed in any of the aforementioned processes, in particular when doing business in Europe.
These challenges are:
Any business decision should be driven by the question whether the decision is sustainable beyond the initial phase. Whether this involves the chosen compensation model in a specific country, applying certain benefit schemes to employees or any other matter, it should be dealt with in a manner that includes the future size, impact and growth of the company in that specific country.
In particular in (high) growth situations it is the intend that the company will grow at a sometimes astonishing speed, both from a revenue perspective as well as from the number of employees and number of strategic alliances. At the same time the focus on margin and profitability will require more than in the past a need to scale the organization dynamically in relation to its actual performance. In todays environment whereby companies focus on their core business and divest non-core assets that applies even more.
Building excellent relationships with your customers requires a high level of quality. This can only be reached if your employees do possess that same drive to deliver quality - now and in the future - as required by you. It is obvious that hiring the right individuals, in the right mix, and enabling a true team spirit is critical to that challenge.
Direct versus Indirect Channel Approach
With the movement to different business models and increasing focus on the whole supply chain it becomes critical that an organization makes a clear decision on the direct, indirect or combined approach and align their recruitment and compensation practices with the chosen channel approach