Article at a glance:

The multilocal challenge: Managing cross-border functions

• Leading companies in sectors such as power utilities, telecommunications, financial services, and transportation, notably in Europe, have been growing rapidly outside their traditional geographic bases.
• These businesses characteristically need to protect their local value while simultaneously exploiting cross-border synergies and increasing scale.
• The multilocal focus poses an awkward organizational challenge. To succeed, executives must understand the size and nature of the cross-border and local value at stake, raise awareness of cross-border opportunities, overcome motivational barriers, and sharpen cross-border execution skills. They should also choose carefully among a range of organizational options from outright centralization to full localization and counter the ensuing complexity by defining key roles carefully, clustering activities in regional groups, and selectively introducing a common culture.