Going Global (for startups...)- updated

Going Global (Startup 101..)

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Establishing a Global HR Function in a Startup

Aviva GattVP People, StoreDot


Agenda• What are the objectives of building a global organization?• Questions arising when planning global organization• What needs to be addressed in a global start up organization?• What is HR’s part in “going global”?• HR in global recruiting• Additional considerations when setting up (global) HR• What is the “price” of successful global organization?• Do’s & Don’t’s• Key Success Factors for Global HR


What are the objectives of a Global Organization?

Lets go back to basics;• Closer access to market/customers/analysts/investors• Enable visibility to professional networks / customers abroad• Strengthen company focus on market/customer aspects• Ability to react quickly – market, versus competition• Ability to develop R&D/technical capabilities not found in Israel

(example-Analog IC and RFIC development centers)- even Sales & Marketing

• Leverage strengths /opportunities of each region• Potential “Best of each world”


Questions that arise when planning a global organization• Where is Corporate going to be based? Who is located where? Who

should relocate? (founder, support function etc..)• Level of autonomy of the subsidiary, reporting structure

• Management• Sales, Marketing, Operations, HR

• Corporate HR- Level of involvement in HR related processes?• What is the right mix of local & relocated employees?• How to build an organization that enables communication,

transparency, effective work practices & culture, resilience etc..• HR aspects-when to recruit local HR Manager? Reports to?

• Report to Country Manager or Corporate HR?• Timing-depends on needs (i.e. recruiting, etc..)

• 30-40 employees – depending on diversity, management maturity


What needs to be addressed in global HR startup organization?

• PEOPLE• Structure

• Autonomy versus centralization

• Communications• Culture• Competitive & relevant Compensation & Benefits• Policies & Procedures• Mix of employees (local, relocated) -people again ;-)


What is HR’s part in going Global?• Making sure you are building it right- careful not to make “comfort zone decisions”

• HR is an initiator but also a “Bridge”/ facilitator (between sites, with the CEO, with the management team)

• Have the right support resources- legal, tax , comp & benefits, recruiters• Bring on the right people (startup experience, hands-on, previous global/Israeli experience)**• Define the recruiting process?**• How is the communication going to be structured?• Once you go global you need some level of structure or as Nehamkin calls it –

“Management Routine”• Work with CEO (and then with Management team)- define the culture you

want, values you want to develop in the company & the DNA you need to succeed as a global company, identify the gaps- with management put in plan to implement, define metrics


HR in Global RecruitingThis is your opportunity to position yourself- be involved/lead this from earliest stage possible• Before -Identify recruiting sources- build your network- map out the competition, have

qualified recruiters if needed, have comp info ready (advanced HR/option impact-www.advanced-hr.com)

• Have job descriptions ready- once need is identified- initiate contact with relevant hiring manager,

• Ideally you start the process, skype video interview with candidates, summarize interview based on job description and the key success factors identified,

• Work with hiring manager- manage him if needed (weekly?))• Define recruiting process, define decision process (final candidate comes to Israel/

Team goes to him, who negotiates comp?)• Onboarding,


Additional considerations when setting up (global) HR• Clear charter , structure and job descriptions

• Implement organizational strategy with sensitivity to specific cultural aspects (some aspect of cross cultural training)

• Seamless communications• Computer/Communications network• Video conferencing whenever possible• Intranet, SLACK or other communication platform

• Infrastructure• Meetings (management team, product team etc..)• HR 1 on 1 with relevant functions (preferably video/skype)• Compensation & benefits• Company Policies – specific country aspects

• Need for frequent travel• BE PROACTIVE


What is the “price” of successful global organization?

• Never ending day- start in APAC-end in California….*• You are always available• Sensitivities on all sides (& you are in the middle)• Politics• Lots of travel


Do’s• Communicate, Communicate, Communicate• Clear vision• Respect• Cross functional & multi site teams- mix employees• Senior management updates on each site (quarterly?)• Enable frequent visits to HQ (every quarter?)• “Back office”/focal point for each local function: Sales/ marketing/ support function

until there is enough local critical mass. • HR -frequent visits to site (1-2 a quarter)• HR should be involved from day 1 (support/facilitator function)• HR should develop formal and informal channels • Deep understanding of local business conduct and local compensation & benefits-

invest in this if needed


Don'ts

• Be Proactive: Don’t let the “they” and “us” mentality develop (top management must take responsibility)

• Don’t “grade” others by your standards- be open minded to other standards, culture etc..

• Try to define flexible boundaries and keep them• Don’t be afraid to define who you are (Company identity) &

what you expect- less disappointment and aggravation from all sides

• Don’t “wait to be invited”- initiate- this is your opportunity!


Key Success Factors for Global HR• Management (CEO, BOD) backing

• HR involvement early as possible• Local GM/CM acceptance of added value• Being perceived as having professional value to organization

• Understanding the culture, the local business conduct, local benefits, - ensuring company is attractive & in sync with market practice

• Succeed in recruiting, on boarding, retaining talent, communication• Understand & provide the needs, expectations of your internal “customers”

• Budget responsibility • Develop independent channels- internal & external (communication, information,

influence, partners etc..)• Initiate, communicate, get feedback, listen, ensure CEO & local GM have no surprises


Thank You


Characteristics of Start-Up Growing Global• Clear from the beginning that the market is outside of Israel

• Decision that business needs to be close to the Market / Customers/ Investors• Founder relocates & then begin recruiting US* (or other locality- APAC etc..)

business functions • Includes relocating Israelis

• Challenges: • Division of authority between HQ & Local (1 VP sales or 2, report to?)• Defining right structure

• Tendency to keep things vague instead of dealing & resolving• Communication difficulties between “factory” and market• “Culture” & “communication” become buzzwords• Some level of frustration, mistrust on both sides• Becomes interesting when additional localities are added…

Going Global (for startups...)- updated

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