Based on operational excellence essentials - Where should my next office be located?
Very important and economically crucial question for many businesses. Specifically the ones that need physical attendance with certain background and level of experience, might find difficult to figure out the best way
how to pick the next business destination.
To be completely honest, there were few companies that we experienced on our own skin which based their decision fully on cheap location and labor. Simply put, nice beach or a reasonably-priced beer were enough to make the decision passing with flying colors. Now, when it comes to team buildings, what more to ask for, right? But when it comes to raw business, that's a completely different question.
There are many items to be checked and there is not a single reply or one-size-fits-all solution for all industries obviously. What can make us a bit inspired is the recent study of The World Bank published in late October 2019.
As it seems, the criteria in few words are based on smoother operation and platforms for improving business performance.
The top five countries in the list are:
- New Zealand
- Hong Kong
- South Korea
Looking at the above top 5 or even top 10 countries, many CEOs might think "Why should we establish our next destination there, while we can go to countries with lower operational costs?" Now, in all fairness, aren't they right?
What Let's Perform always advises the clients is: "It depends"
Make it simple for yourself to decide better.
If you are selling a premium product or service, then do not compromise the quality of your business operation. High-quality bases such as easier paperwork, clear regulations, competitive environment, automation specifically with government, etc. make your business more efficient and this efficiency will be reflected in your customer experience journey. These items support you to be more customer or client-centric and without them, you cannot create a sustainable competitive advantage.
On top of it what we always insist is well trained and skillful human resources. You cannot get this in less developed countries easily. Either you should hire more people for the same job or you should compromise quality! Right?
Well-educated employees in developed countries are expensive but the ROI is certainly higher too. That's a secret that many CEOs forget. Specifically, when they are planning for long-term.
What we would like to say is simple and examined before:
The quality level of your business defines the quality of your operation. NOT the other way around.
You cannot design your operation at any level and then expect the best product/service out of it.
Whatever you base your decision on, good luck with your next destination. And please, don't forget to fasten your seatbelt! It will be one hell of a ride!