Wie können Sie Fallstricke bei grenzüberschreitenden Umstrukturierungen vermeiden?

Consider not restructuring across borders. The cultural perception of restructuring (lay offs) and the cost associated is going to be worth a consideration. I've seen a global restructuring be perceived as acceptable in the US, whereas the talent brand hit was significant in Japan, Brazil, and France where not only are labor laws different, expectations and cultural norms about employers are different. In this example, the time to fill roles in Japan was already a challenge and after lay offs that time to fill rate continued to tick up and interviewees cited an uneasiness about the company. GTM in Japan took a quantifiable hit in revenue for each role that went unfilled.

The first step would be cultural sensitivity training to be imparted to those involved in the restructuring...country specific cross cultural sensitivity would help in understanding the why people of different nationalities act the way they do which may be acceptable in their culture but alien to the other. A study of the history of the country(ies) where the restructuring is being done is also part of this cultural understanding. Transparent communication yes but the key is communication that can be understood by people of the nationality where the restructuring is being done. This is the starting point - the rest follows

Let's say you're a U.S.-based company that wants to restructure its operations in the U.K. and India. If you don't thoroughly plan, you might encounter various issues. For instance, U.K. labor laws differ significantly from those in the U.S., and if you aren't aware of these differences, you could find yourself in legal trouble when laying off employees. Similarly, India has its own regulatory requirements for business operations, and not understanding these could lead to delays or fines. Being sensitive to cultural differences is crucial in any cross-border initiative. Clear communication with all stakeholders, can often be the difference between a smooth restructuring and a chaotic one.

Planning ahead is not just about avoiding issues and conflicts. It also allows stakeholders to weigh up potentially differing options and processes which may be available in different jurisdictions. For example, where a company is in distress but its jurisdiction of incorporation or debt does not provide recovery or rescue procedures, identifying a nexus with other jurisdictions and reviewing the potential opportunities to commence proceedings or processes there may be of significant value.

When companies merge across borders, they don't just combine assets and operations; they blend distinct corporate cultures often rooted in diverse national traditions. This melding of cultures is a complex process, fraught with challenges. One significant concern is the Risk of Cultural Homogenization. In the pursuit of operational efficiency, there's a tendency to streamline and standardize practices, potentially eroding the unique cultural aspects of the acquired company. Such homogenization can dilute what made the brand resonate in its native market, leading to a loss of brand identity and customer loyalty. It's then crucial for mergers to think and plan how to respect and preserve the intrinsic cultural values that define each entity.

Customize your communications for different stakeholders, ensuring that the message resonates with their specific interests and concerns. Utilize professional translation services to ensure that all communications are accurately conveyed in the relevant languages. Be aware of cultural nuances that may affect how your message is received. Adjust your approach to align with local customs and practices. Clearly articulate the reasons for the restructuring, highlighting the benefits for the organization and stakeholders involved. Transparency builds trust. Provide platforms for stakeholders to voice their concerns or questions. Actively listen and respond to feedback to show that their input is valued.

In cross-border mergers, understanding cultural, linguistic, and stylistic nuances is paramount. The core question, "What's In It For Me?" (W.I.I.F.M), resonates differently across cultures. Quantitative data, like revenue hikes, speaks universally, but its interpretation varies. Testimonials should respect language and cultural subtleties, while benchmarks against global competitors provide context. Figures highlight sales gains, narratives depict cultural synergies, and comparisons showcase innovation. Tailoring messages to accommodate W.I.I.F.M and cultural distinctions ensures clarity and relevance in a diverse landscape.

While cultural and language differences must be considered, different economic, regulatory, and legal schemes also pose often unconsidered risks. I've spent countless hours explaining to Asian companies that the U.S. government will not intervene in private commercial relationships. The same can be said of educating American executives that the law is different abroad. (For example, in most of Europe "at will" employment is not recognized.) When working abroad, select attorneys and other consultants with experience in your home culture because it helps to have people familiar with both countries educate the parties.

Imagine you're Apple and you decide to change your supply chain setup, moving some operations from China to Vietnam to diversify risk and save on costs. This isn't just a business move; it's a complex process involving thousands of people and multiple countries. If Apple doesn't communicate effectively with its suppliers, employees, and even customers, things can go south quickly. For example, suppliers could miss deadlines, causing delays in product launches, or employees could strike because they don't understand the rationale behind the move. The use of communication platforms can streamline the process. Think Slack channels, Microsoft Teams, or specialized software for change management.

In my extensive experience I agree that communication at all levels is extremely important. You should also ally yourself with good local associates and like minded individuals. Reliance on these people is usually key. Finally a good dose of common sense and less jargon are in my opinion essential.

Imagine a car manufacturing company that has factories in the U.S., Germany, and China. They want to shift towards electric vehicles and need to restructure their operations globally. They would need the American factory focused on design, the German factory on engineering, and the Chinese factory on assembly. To do this, they would have to make sure all these diverse teams understand this new focus (common vision), agree on how they'll achieve it (shared framework), and work well together despite cultural or functional differences (trust and respect). They would likely need to retrain employees to adapt to the new skills needed for electric vehicle manufacturing and perhaps give bonuses to those who lead in the transition (incentives).

Clearly define and communicate a unified vision and set of objectives for the restructuring. Ensure that all teams understand how their contributions align with these goals. Develop a structured framework that outlines roles, responsibilities, and processes for collaboration. This helps minimize confusion and encourages teamwork. Promote a culture of trust by encouraging transparency and inclusivity. Recognize and celebrate team members' contributions, fostering a sense of belonging. Establish support mechanisms, such as mentorship programs or access to resources, to help teams adapt to new roles and responsibilities during the transition. Create mechanisms for gathering and acting on feedback from teams throughout the restructuring process

Catalog potential risks such as legal disputes, regulatory challenges, cultural misunderstandings, operational disruptions, and reputational concerns. Engage local legal experts to navigate the regulatory frameworks of each country involved, ensuring compliance with all relevant laws and regulations. Engage with stakeholders to understand their rights, expectations, and potential concerns. Incorporate their feedback into your planning. Provide training on cultural differences to help teams navigate potential clashes and foster a respectful and collaborative environment. Develop a robust operational plan that outlines key steps, timelines, and resource allocations, minimizing the risk of disruptions.

Imagine Uber wanting to expand its operations into multiple European countries, each with their own set of rules, cultures, and public expectations. In Germany, for instance, the local taxi associations might file lawsuits (legal risks). Regulatory bodies might scrutinize Uber's licensing models (regulatory risks). Citizens may be uncomfortable with a foreign ride-sharing service (cultural risks), and competitors might step in, causing market confusion (operational risks). Bad press in one country could lead to a ripple effect damaging Uber's brand in others (reputational risk). Risk management in cross-border restructuring could also involve currency risk. Another often overlooked area is intellectual property (IP) risk.

Over several cross-border transactions, many of which I have project managed, it is clear to me that the best and most fee-efficient outcomes come from utilising a network of on-the-ground boutique to mid-tier expert firms. The firm should have a global outlook with deep regional expertise. For this reason and also because they seldom have cross-border intra-firm conflicts or ambiguities, the expert boutique is a great choice. After doing this awhile, you get to know who they are and how to best access the benefits of their regional focus and efficiencies. Big is seldom better, but it is almost always conflicted and expensive.

It is worth noting that with such quality comes cost. Cross border restructurings require knowledge which is only likely to be found at larger, more expensive advisory outlets and firms, and the costs can be difficult to manage alongside existing financial distress. Creative payment options are available (i.e. success fees for financial advisors, cost caps and reductions from law firms etc) but companies should be aware of the potential for further cash leakage. An innovative option could be to directly employ a dedicated in-house restructuring consultant lawyer, who would be able to manage the project internally without time being drained by a day job, which in turn could cut external hourly rate costs.

Let's consider Tesla, which has operations in the U.S., China, and Europe. When Tesla decided to build a Gigafactory in Berlin, Germany, they had to understand not just German business law but also local labor laws, tax codes, and even environmental regulations. They likely consulted external experts in each of these areas to ensure they were compliant with EU regulations, were effectively managing their workforce, and were optimizing tax strategies. When restructuring across borders, understanding the local work culture can be just as important as understanding tax laws. Another point to consider is how to choose these external experts. Due diligence is needed to ensure they understand your specific industry.

It's about managing a virtuous circle that improves the situation with each turn. The opposite, the vicious circle is what has led to the business state the company is in. It is no coincidence that we now find ourselves in a restructuring situation where difficult decisions have to be made. Because if you learn from both successes and failures, you learn faster. But this learning must be institutionalized in the very functioning of the organization, otherwise it doesn't work. By this we mean formal places and moments in the company's life.

Cross-border restructuring? Plan for liftoff! Here's how to avoid turbulence: 1.Know the airspace: Research legal, tax, and cultural differences in target countries. 2.Assemble a dream crew: Build a team with international expertise - lawyers, HR, and cultural consultants. 3.Clear communication is key: Overcommunicate plans and goals to all teams, anticipating questions and concerns. 4.Respect local customs: Be sensitive to cultural norms and work styles to build trust and collaboration. 5.Flexibility is your wingman: Adapt your approach to fit each location, fostering a sense of ownership for local teams. By following these steps, you can navigate the complexities of international restructuring and land smoothly.

We said (read above) to create formal places and moments in the company's life, where one stops: a) to evaluate in a detached way what worked and what didn't work. b) to decide what to do - to do better. c) ensure that there are no organizational impediments to improvement, and install control procedures that prevent returning to "old habits". A system of continuous improvement, in short, which requires endorsement by the owners and top management and which must begin to be part of the company's culture itself; and become the deep culture, rooted in its fibers. With a sharing of the learning at all levels and a true acceptance of continuous improvement at all levels (without internal silos between divisions, departments and functions).