Case Study
Client
U.S. nonprofit association
Industry
Financial services and insurance
Headquarters
United States
People/Membership
Approximately 200 employees; 41,000+ global members
We assisted a prominent nonprofit association focused on financial services and risk in assessing their organizational international readiness. As a result of our in-depth evaluation, assessments, and research findings, the CEO determined that additional internal preparation – involving transformation and organizational change management – was necessary before fully committing to the development of a robust strategy for global expansion. This decision resulted in significant internal enhancements to the organization’s functional areas and staff, and avoided unnecessary risk and long-term expense for their business.
Client Background
A U.S. nonprofit association, focused on offering education, professional development, and best practice resources to its members across the financial services and insurance industries, had long been considering international expansion. With a strong foothold in the U.S. and increasing demand from abroad, the organization sought to explore opportunities to expand its reach and impact globally.
Consulting Overview
Factum Global is an international consulting firm with a proven track record of helping clients expand into new markets. With a team of experienced consultants, deep expertise in international business, and network of in-market service providers, we are well-positioned to help organizations assess their readiness for international expansion, develop a global strategy and operate in markets around the world.
Project Scope
The association approached us for assistance in determining how it should pursue global expansion. While we were well positioned to do so, our consultants would have been remiss not to first ask whether it should be pursuing global expansion in the first place, and then evaluating its global readiness.
We are proud to form genuine partnerships with our clients and believed it was our responsibility to encourage an internal discussion and evaluation before moving forward. So, we started by asking the “tough questions.” In these discussions, we collectively realized that more information was needed before making the big decision to expand globally.
Ultimately, the client appreciated the challenge, decided to pause its expansion planning, and requested additional market research, including a feasibility study and an international readiness assessment.
Using our proprietary readiness assessment model, the Factum Global International Maturity Model, we evaluated several key aspects of the organization.
Our Support Included:
- International readiness assessment
- Market research
- Global strategy development
- Board of Directors/Senior management advocacy
- Transformation & change management
- Strategy implementation
- Internationalization training
Project Execution
Moving on, we conducted a comprehensive review of the global financial markets to validate potential opportunities. We also evaluated the association’s existing operations, including (but not limited to) interviews with key stakeholders, a review of financial statements and internal documents, systems and procedures, and an analysis of industry trends and market dynamics.
Based on the findings of our assessment, we discovered several key areas where the association was advised to improve its internal operations and infrastructure before pursuing international expansion.
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- We recognized that the association’s governance and C-suite were not aligned in terms of going global. The Board of Directors lacked a true appetite for investing (time, money, people, etc.) globally, while the C-suite and senior staff recognized the need and opportunity to grow revenues by pursuing international markets. Before embarking on a global expansion journey, the collective leadership needed to be fully committed and have a clear vision for the future – and it did not.
- We identified other major gaps and inefficiencies across the organization’s talent, management processes and systems, and in its overall U.S.-centric culture. While these issues may certainly be addressed over time, it would require specific attention, investment, and a commitment from all levels of the organization, which was subpar.
Outcome
Based on our research, we confirmed that the organization had substantial opportunities internationally. However, given the findings of our international readiness assessment, we advised the association’s senior leadership to delay global expansion and first focus on “getting their house in order.” Senior management required greater alignment with the Board so that it could collectively commit people, time, budget, and focus on going global.
Following our recommendations, the association decided to pause. For several months, the association has been implementing several internal changes and adopting new systems, including some identified by our firm. Within the next few months, we will be re-evaluating whether they are now well-positioned to proceed.
This example serves as a reminder that while an organization may have opportunities across international markets, some are not necessarily prepared for the challenge that awaits. Assessing international readiness is just as important as understanding and validating global opportunities.
With the Board and C-suite’s foresight in addressing the “tough questions” early on, followed by an assessment of its readiness and internal improvements, this client avoided expensive and time-consuming mistakes. It will soon be primed to successfully expand into new markets and achieve its strategic goals.
