Four Stages for International Growth and Crafting Efficient Workforces
Rewritten Article:
Tom Dunlop, co-founder and CEO of CLM solution Summize, previously served as General Counsel for high-growth tech companies.
Back in 2018, we revolutionized the contract lifecycle management (CLM) market with our innovative approach. Based in Manchester, U.K., we swiftly expanded across Europe, the Middle East, and Africa. But our sights were set on the U.S., aiming not just to establish a presence, but to create a secondary hub in Boston.
I'm not tooting our horn, but sharing our journey is crucial to understanding our entry into the U.S. market.
Our grand scheme involved four strategic phases, designed to guide the opening of our Boston headquarters in 2023. Here's a closer look at each phase, revealing our thought process, lessons learned, and the keys to our American success.
Phase One: Choosing the Right Location
Boston was our top choice for several reasons. When we analyzed our ideal customer profile (ICP), we discovered a high concentration of compatible companies within the region. However, what truly sealed the deal was the city's similarities to Manchester, U.K., in spirit and culture.
Both cities appreciate education, finance, and startups, ensuring a steady stream of talented candidates. Additionally, the resilience and determination displayed by Bostonians after the Boston Marathon bombings mirrored that of Mancunians following the arena explosion. Essentially, you're on the hunt for cities that share your DNA, cities that feel like a familiar and flattering close relative.
Find that location, and you'll find employees who share your vision and values, allowing your culture to take root and thrive within the new entity.
Phase Two: Assembling the Founding Team
Building a team to conquer the U.S. was essential. Unlike big corporations, which typically hire locally and expect new hires to implement previously tested plans, we deployed staff who had been with the company for at least two years. The rapid growth we experienced meant that their in-the-trenches experience was substantial.
Look for specific personality traits when constructing your founding team. Select employees who embody your values and are frequently sought out by colleagues for problem-solving. Most importantly, these individuals should be instrumental in shaping company culture.
Task your team with replicating your existing cultural foundation. The initial members should establish the culture for the next 10. They, in turn, should guide the culture for the next 20 and so on. This organic, ever-evolving process ensures a perfect fit.
Phase Three: Tailoring our Approach to New Customers
When it came to developing our customer prospecting strategy, we replicated our highest-performing U.K. and EMEA initiatives but fine-tuned them to resonate with the American market. We identified the verticals that yielded the best results, the use cases that struck a chord, and the sales funnel that produced the highest deal values. Most crucially, we understood the type of customer we wanted, enabling us to design an effective go-to-market (GTM) strategy.
It's tempting to think that a successful approach in one market will automatically translate to another. However, that mindset can lead to blind spots, such as relying on existing customers for validation. Instead, test your GTM strategy from scratch, as if you were starting fresh in a new region. This way, you'll discern whether your strategy works independently of any connections to existing customers.
Another crucial aspect is securing referenceable customers in your new market. Strive to establish relationships in at least three distinct verticals. Once you can replicate your GTM motion across verticals, you'll be ready to invest in expansion.
Phase Four: Regional Adjustments and Market Maturity
This phase was all about testing, evaluating, and understanding our target market. To gauge the level of CLM technology education and maturity, we monitored prospect calls, experimented with various scripts, and identified pain points and use-case examples that resonated. We also assessed the maturity level of CLM knowledge, as this varied significantly by region.
For instance, we found the U.S. market to be more advanced, as they were well-informed about the value of CLMs without a need for extensive education. On the other hand, the U.K. market required a CLM education phase before introducing our competitive strengths and innovative approach. In the U.S., prospects were already knowledgeable, likely due to competitors investing heavily in market education.
Perform thorough due diligence upfront. This can help you make swift course corrections, saving time, resources, and staying on track for successful expansion.
Embracing Ownership
Initially, our founding team was largely British, with a few notable exceptions. As we've grown, the balance has organically shifted, with twice as many American employees and the ratio continuing to evolve in the same direction. We've found that the best hires believe in a company's purpose and their role within it. Empower them, and they'll uphold your mission with conviction.
To foster this mentality, don't shy away from granting employees ownership. Consider establishing a stock option pool for all employees. This demonstrates your commitment to shared success and can help build a unified, committed team.
Trendy offices and lavish benefits might attract candidates, but their allure is fleeting. Instead, focus on fostering a culture of commitment and purpose. If you're in it for the long haul, as we are, building and nurturing mutual commitment is essential for a successful expansion.
Do I qualify for the Forbes Technology Council? Only time will tell. 😊
Tom Dunlop, co-founder and CEO of CLM solutions provider Summize, is planning to expand the company's presence in the U.S. by establishing a secondary hub in Boston in 2023, following a structured four-phase strategy.
In Phase One, they chose Boston due to its high concentration of compatible companies, similarities to Manchester in spirit and culture, and steady stream of talented candidates. The city's resilience and determination, as demonstrated after the Boston Marathon bombings, mirror Mancunians' response to the arena explosion.
During Phase Two, Tom Dunlop assembled a founding team consisting of experienced employees who had been with the company for at least two years, embodying the company's values and essential for shaping company culture.
In Phase Three, they tailored their approach to new customers by replicating their highest-performing initiatives from the U.K. and EMEA but fine-tuning them to resonate with the American market.
Finally, in Phase Four, they focused on understanding the maturity level of the CLM market in the U.S., making swift course corrections, and establishing relationships in at least three distinct verticals.
To foster a culture of commitment and purpose, Dunlop plans to grant employees ownership through a stock option pool in the future.
