X

Our Analysts' Insights

23Aug

Financial Benchmarks to Move Business Process Globalization Forward

One of the most frequent questions that CSA Research analysts are asked is how a translation team can help the rest of the company do a better job marketing to, selling to, and caring for local markets around the globe as well as multicultural ones in their home country. After all, it's usually not their mandated responsibility to support enterprise-wide business process globalization. However, if they don't take it on, they often find that they can't meet their own objectives for delivering locally relevant content, code, and programs.

For those who already struggle with this challenge, we provide three pieces of advice to help you stay on track. If you have yet to face this problem, read on because we find that it happens even in the early stages of localization maturity.

  • Choose the same financial benchmarks that your CFO and CEO track relentlessly. These include metrics such as total and international revenue and related costs such as language services spend. You can apply the metrics to your own team's localization maturity, as well as to the income and expenditures associated with enterprise-wide business process globalization. For example, tie your global content strategy to the ability of your in-country staff or partners to take advantage of all localized material that your team provides. Otherwise, they may be overwhelmed by what they're expected to implement.


     
  • Focus everyone on "ROI," not "ROC." The secret to establishing appropriate criteria for measuring ROI is to emphasize what the acronym stands for. It's not "ROC," as in "return on cost," but rather "return on investment" - whether you're discussing language services or improvements related to business process globalization. Adopting this stance also shifts the perspective of your executives and the entire organization from a fixation on cost to the remarkable investment opportunity that both areas represent. Our research shows that companies spend anywhere from 0.03% to 1% of their total revenue on activities related to multilingual content and code - that's a minuscule outlay when compared to the amount of revenue and profit that it drives. Your organization should spend at least this much - if not more - to ensure that it meets international growth and market share targets.
     
  • View data - and its graphic representations - as a hook to catch and sustain people's attention. Track, monitor, and report three to five key business performance metrics to communicate quarterly - or at whatever cadence makes sense for your organization - the contribution of localization and enterprise-wide business process globalization to global growth. Make the takeaways simple so that managers can communicate them up the chain and so that executives can easily remember them. Ensure that everyone on your team knows these metrics by heart so that they can cite them during chance meetings in the hallways and spur-of-the-moment presentations to managers and executives.

Use data related to international revenuelanguage services spend, and organizational maturity to combat the stigma of translation as a cost with modest benefits. Build confidence in others that a savvy investment in language services is a prime driver for global and domestic multicultural growth. At the same time, leverage the information to support your organization to move faster to globalize its business processes enterprise-wide. Language services providers can use this data to fine-tune their segmentation strategies and to better support their clients to build business cases for sustainable funding of language-related services.

About the Author

Rebecca Ray

Rebecca Ray

Director of Buyers Service

Focuses on global digital transformation, enterprise globalization, localization maturity, social media, global product development, crowdsourcing, transcreation, and internationalization

Related

Step Up: It’s Time for Localization Teams to Lead

Step Up: It’s Time for Localization Teams to Lead

Have you dreamed about leading the charge to globalize business processes across your entire organiz...

Read More >
TMS in the Time of COVID-19

TMS in the Time of COVID-19

The sudden change from office-based to remote workforces forced by the COVID-19 pandemic prompted a ...

Read More >
Direct-to-Consumer: How to Get the Global Piece Right

Direct-to-Consumer: How to Get the Global Piece Right

Consumer and digital marketers have so much to deliver that it often looks as if they’re trying to ...

Read More >
Data to Predict Language ROI

Data to Predict Language ROI

Far too many companies rely on anecdotal data; rough measures based on GDP, and the number of people...

Read More >
How Your Firm Can Benefit from Benchmarking Globalization Maturity

How Your Firm Can Benefit from Benchmarking Globalization Maturity

Many executives and their functional managers view international business issues as “special” and ...

Read More >
Improving Customer Experience Across International Markets

Improving Customer Experience Across International Markets

What does global customer experience or GCX mean for your organization? It encompasses the approach ...

Read More >

Subscribe

Name

Categories

Follow Us on Twitter