Templatize or not templatize? That is the question.
At the beginning of global business application projects, sometimes I dare to ask whether we should deploy a standard template across the regions or not. Most of the time I get weird looks around the room questioning my competence. Everyone assumes the answer is an obvious yes. Yet, most have not been through the journey and don't know what they are signing up for. Let me explain.
Companies pay large sums of money and deploy valuable resources to execute global system deployments. They rightfully expect a high return on their investment. Standardization of processes is seen as a key driver for cost savings since it can improve operational efficiency and control the headcount. Such standardization can enable shared services which were discussed in another blog post.
Assuming a single global platform, most companies end up standardizing their internal-facing functions such as financials, procurement, human resources, etc. They are more in control of such processes and can dictate a common behavior across regions. The external facing functions such as sales, customer service, retail, etc. tend to be driven by outside forces - most importantly the customers.
After the platform and processes, the culture and organizational structure become key considerations. There are many types of global organizations. Some have strong headquarters that strictly control regional satellite offices. Some are a combination of acquisitions around the world that have equal power. Some are very decentralized and give a lot of autonomy to their regional offices. How companies conduct their businesses around the world affects how global templates should be developed and deployed, if at all.
Global templates are most suitable for heavily centralized organizations. The solution can be developed in the headquarters and then deployed across regions as long as the right platform and processes are picked. The Decision-making process is rather quick as the people in the headquarters can make decisions for everyone. A great example is a large manufacturer that has several sales offices around the world distributing its product globally. Since international divisions buy from the mother ship, you can templatize financials, procurement, and planning quite easily while letting the divisions dictate their sales processes.
I find global templates to be most challenging in decentralized organizations that were put together through acquisitions that offer different product lines. In such cases, there is not so much common to templatize in the first place. You can attempt to standardize on financials, but if you cannot enforce it through a formal organizational structure, your global template will not hold its ground. A great example is a holding company composed of multiple brands that offer different product lines around the world. Let's say a women's fashion company in France, a jeanswear company in the USA, and a sportswear company in Canada all reporting to a holding company in the United Kingdom. You may spend countless hours and a lot of money to develop a global template yet fail to achieve the standardization required to make one successful.
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My name is Cem and this has been another gem.
