TEP CONFERENCE • INTERNATIONAL WEEK
The Master Key to
8 Pointers for
Cross-Border Business
Hiring in the US
Success? A Global Mindset!
By Feargall Kenny
A
By Sophie Lechner
S
o you think you are ready to go
international. You are likely not.
Consider this: Research shows that
50% to 70% of all deals fail because of culture and communication issues. It’s the
silent killer because it is rarely diagnosed,
even after the deal is dead.
The issue comes from underestimating
the role of cross-cultural understanding
in the successful development of global
markets. Preparation, of course is critical,
but so is having a global mindset.
One of the pitfalls in global expansion
comes from trying to get results too fast,
focusing on the deal. The focus must be on
building solid and lasting business relationships that will create a foundation for long
term, sustainable business. That requires
understanding the culture and adapting to
it. To do any kind of business, trust is critical. And how can trust emerge if people are
not communicating effectively?
Research shows that
50% to 70% of all deals
fail because of culture
and communication
issues.
With business increasingly conducted
in English you may have a false sense of
comfort. You understand the words but
you may be missing the person’s meaning entirely. I am French and when I got
my first performance review in the US
I completely missed what my boss was
trying to tell me! In France, if someone
says you are doing a great job, then the
message is simple: you are doing a great
job! There is no context that needs interpreting. I would have better understood
my boss’ remark if I had given more
weight to the context of the conversation. This happens because we all carry
our own cultural assumptions into a dialogue. A global mindset means you have
learned to take your assumptions out of
what is being said. It takes time and effort. The good news is that if you show a
willingness to do this, your counterparts
will appreciate it enormously and blunders will be forgiven.
It is not about reading the etiquette
book; it is about opening your mind to see
10
where the other person is coming from.
Adapting your product to the customer
in the foreign market is another very common mistake that even corporate giants
make. Speaking about the failed global expansion of his company in the 1990’s, the
founder of Intuit, Scott Cook, said, “We
should’ve known better.” So what went
wrong? After years of success in the US
with the QuickBooks accounting software,
Intuit launched in several European and
Asian countries. After an initial success,
sales started plummeting. Cook went to
the countries to investigate and was struck
by this user’s question: “Why does it look
just like an American product?” Intuit had
built a product in the US that was highly
intuitive (hence the name) for a US user,
but only translated the materials for foreign markets. They failed to realize that
people approach things differently across
cultural boundaries. Intuit withdrew from
their overseas markets and didn’t attempt it
again for over a decade.
To avoid such pitfalls, we suggest you
find a guide to help you navigate your
new market.
Global Commerce Education, Inc.
(GCE) is a member of the French
American Chamber of Commerce.
The Chamber recently opened our new
co-working space, FACC CoWork, especially for young companies coming to the
US. GCE’s G2 Experience is an immersion program that helps companies trade
across borders more effectively. To learn
more, go to www.g2experience.org or call
Sophie Lechner at +1 917 859 5268
Sophie Lechner is the CEO of Global
Commerce Education, Inc.
t Glenborn we help earlier stage
marketing and ecommerce SaaS
firms make crucial sales hires—
from CROs and VPs to senior individual
contributors. Here are the pointers I give to
international startups looking to learn how
to start hiring in the US:
1. Are you really ready to hire in the
US yet? Consider the alternatives. Think
about contractors (1099 workers in US
vernacular). Maybe using them or a sales
agent is a better way for your firm to enter
the US market.
2. Assuming you are ready, get prepped
to hire.
• Incorporate with a lawyer and get prepared to hire with offer letter samples
/ employment contracts etc. Get an
EIN (tax id), accountant, payroll, and
benefits provider.
• Choose your location. Think of your
sales model. Inside versus outside sales
and associated labor costs. Where are
your key verticals located? Move to
the area closest to key customers and
partners.
• Get an office. With so many co-working options this is easy and cheap in
most US cities.
• Get local case studies and localized
collateral fast. Acronyms like ICT are
not used here, so test your lingo first.
3. Go local fast. Hire Americans. A few
HQ transplants work for a while but the
quicker you hire local the better. This is
especially true the further away from the
major cities you get.
4. Get your recruitment act together before you come. Consider hiring an agency.
Local knowledge is key. Don’t rely on job
postings and inbound responses to those
postings or ads. Inbound applications in
the US are generally of very poor quality.
5. Differentiate yourself in your outreach and interviews. Remember candidates are bombarded by choice! For salespeople expect to be asked lots of questions around how you stack up relative to
US competition. Here are some things to
consider in differentiating yourself:
• Have a good backstory on your history
/ founding.
• Show them money raised, not revenues! That’s what US startups do—in
the US your revenues are not public, so
why share them if they are detrimental to your pitch?
• Be aware of expectations around benefits—healthcare, 401K, etc. If you
don’t have them in place you will not
be competitive.
• Play up the international factor! In my experience American candidates love the
mystique of working for a foreign startup
and the implied international travel.
6. Interview pitfalls and tips.
• Beware of cultural differences.
Americans (especially salespeople)
tend to be more confident and assertive than Europeans. This can-do attitude that makes the US the leader in
the startup world can trip you up when
assessing candidates. Add a pinch of
salt to most interviews.
• Beware of legal pitfalls. Certain interview question can be a no-no in the US
and it is a litigious society, so better not
get in trouble before you start.
7. Paying people.
• Salaries. Get up-to-speed on market
rates for the roles at hand.
• Options. If you don’t offer stock options, you will be at a competitive disadvantage versus local hirers. Options
for everyone is the default expectation.
• Benefits. Healthcare and retirement
offerings like 401K are crucial.
• Terminology. Get used to the hiring lingo. W2s, Base / OTE (on target earnings), exempt versus non-exempt, etc.
8. Remember “at will” employment is a
two-way street. Employment in the US
is generally “at will” which means anyone
can break the relationship at any time.
This flexibility makes the US very hiring
(and firing) friendly. It works two ways,
so be very aware that loyalty is thinner
on the ground. Work on your company
culture and perks to keep folks happy.
Feargall Kenny is a New York Citybased executive recruiter and
president of Glenborn Corporation.
@FeargallKenny
“Business Development
in the US”
10/11 @ 10:45 am
Microsoft Technology Center