The Local Leadership Advantage

How to Find the Best Leaders for Your International Expansion

Great leadership starts on the ground.

Imagine lacing up your running shoes, ready to run a marathon in a city you’ve never visited before. The route is unfamiliar, the terrain is unpredictable, and the weather conditions are a mystery. You’re more worried about where to go and how you’ll get there than you are about winning the race.

Now, imagine having a local running expert by your side. Someone who knows every twist and turn, uphill and downhill of the course. Someone who’s done this before and can prepare you for any surprises or setbacks.

Taking your business global is much like running an unknown route. It requires stamina, strategy and an intimate knowledge of the terrain ahead. This is a race where understanding the local nuances, culture and business landscape becomes your ultimate guide to success.

Whether you’re just at the starting line, planning to take your business international or your expansion is already underway, knowing the course ahead is crucial. It’s about more than just speed and distance – it’s about finding the most efficient path. That’s why we created this guide.

At Waterloo EDC, we believe in the power of local expertise. Having a local leader to guide you through the intricate pathways of international business is like having an insider’s map of the marathon. It gives you a distinct advantage, allowing you to avoid pitfalls and find detours that others might miss. Who wouldn’t want that kind of head start?

Take Turntide Technologies for example. Being from Toronto and familiar with Waterloo, CEO Ryan Morris was able to leverage his local network and knowledge to establish an office in the region. The company’s bottom-up approach to expansion, which involves building a team around a local leader, allows them to get up to speed faster and build on an existing track record.

In this guide, we’ll share real stories and practical advice from other businesses that have successfully navigated the international expansion marathon. You’ll get to learn from giants like Google, Toyota, MasterClass, Bosch and Meta IT, all of whom are thriving in Waterloo thanks to the local leader advantage.

Ready to hit the ground running?

Coming to a crossroad

Hire local or from HQ?

When expanding internationally, businesses are faced with an important decision: bring a leader from headquarters or hire someone locally. Both approaches have their merits and rationale, and understanding when to choose one over the other is key to navigating the course successfully.

Local context: Local leaders have a deep understanding of the community, including post-secondary institutions, research centres, support organizations, real estate, quality of life and more. They bring valuable insights, connections and knowledge that can be instrumental in navigating the unknown.

Shortened learning curve: Hiring a local leader can significantly accelerate entry into a new market. They come equipped with a pre-established network, market knowledge and an understanding of competitors, reducing the time required to adapt and start making an impact.

Community integration: Local leaders can facilitate community integration, something that’s vital for building trust and credibility with potential partners, clients and the local talent. Establishing a physical presence through local offices and community involvement signals commitment to the community and can lead to valuable relationships.

" Local leaders possess knowledge of the talent landscape, ecosystem and local resources, enabling smoother integration into the community. "

Erin D'Alessandro

Vice President of Business Development & Client Services at Waterloo EDC

5 traits of an effective local leader

Local leaders are charged with bridging the gap between HQ and a local office, while steadily guiding the local team to meet their objectives. Kristina McDougall, top executive recruiter and Founder and Managing Partner of Artemis Canada, helped us identify five key traits that make local leaders successful.

1. Resourcefulness and adaptability

Local leads need to be resourceful in navigating the talent pool, research capabilities, real estate and other resources in the community. They should be able to draw on their experience to make strategic decisions for the new office.

2. Quick problem-solving and decisive action

Local leaders should have the ability to swiftly assess situations, make decisions and drive effective actions within the new model. In other words, they know how to get stuff done.

3. Defining and aligning culture

Setting the tone for culture is critical for a local lead. It defines the team they hire, the way they manage and how products are built. Aligning culture with the broader organization is essential for success.

4. Strong leadership skills

Local leads should possess strong leadership skills to accelerate recruiting, build cohesive teams and manage work both locally and in coordination with the broader organization.

5. Understanding local talent

Hiring local leaders must understand the unique experiences and motivations of individuals within the local community to engage and retain the right talent effectively.

The role requires an ambitious attitude and a broad range of skills that can be rare to find. Engaging an executive recruiter to help with your search not only allows them to tap into a known network of ideal candidates, but also gives you confidence in the process, knowing your company will be set up for success 30 days, 6 months and a year from now.

" Setting the tone for culture is something that's really important for a local lead because they're going to be an extension of your organization. "

Kristina McDougall

Founder and Managing Partner of Artemis Canada

Engaging with the local community played a key role in the expansion success of both companies. Leaders actively participated in community initiatives, which not only supported corporate goals but also strengthened community bonds. For instance, Woods was closely linked with support organizations like Communitech and Velocity, while Toyota’s leadership was known for its involvement in philanthropic and social justice initiatives.

Making strategic decisions in tune with market evolutions is a true sign of visionary leadership. Toyota’s decision to pivot from Corolla production to focus on the RAV4 and hybrid models at its Canadian facility in Cambridge, based on the knowledge and expertise of local leaders, is a testament to this. Similarly, Woods’ continued alignment and ability to act on Google’s global objectives demonstrates his forward-thinking approach.

Maintaining strong lines of communication with global headquarters was crucial during both expansions. Woods ensured he was closely connected with Google’s HQ in Mountain View which enabled smooth decision-making processes. Meanwhile, Toyota’s leaders established trust with HQ through constant communication and alignment, which resulted in Cambridge becoming the first plant outside Japan to manufacture its high-end Lexus vehicles.

" Toyota has been blessed with good leadership that is very closely connected to the community. "

Tony LaMantia

President & CEO of Waterloo EDC

How to find the best local leader

When expanding your business into a new location, finding the right local leader is essential to your success. Here are some key strategies to help you select the best candidate for the role:

Early engagement with recruitment experts

Think of recruitment experts as your scouts on the ground, assessing the terrain before the race begins. These professionals have a deep understanding of the local talent market and can provide valuable insights into the available talent pool. They can help you design a strategic route for expansion, identify potential frontrunners and guide you through any hiring hurdles.

Involve a local economic development agency

An economic development agency is like a local coach who knows the track inside out. These agencies have in-depth knowledge of the region’s cultural aspects, business environment and can make introductions to key local stakeholders. They can introduce you to key players in the community, ensuring you have a strong support network for every leg of your expansion journey.

Measure against the 5 key traits

Effective leadership is essential for recruitment, team cohesion and coordination with HQ. Candidates should be able to showcase their leadership abilities through past experiences. Find out if they have the five key traits we explored in the last section.

For example, ask about times when they’ve had to…

Quickly adapt to a change in the market
Align a team’s culture with the broader organization
Inspire and motivate a team to achieve a challenging goal
Make critical decisions about recruitment or resource allocation
Develop a clear vision for a new team or project

" Opening an office, relocating key personnel and actively participating in the local community demonstrates commitment and investment and can help build trust with potential clients and partners. "

Marcos Machado

Executive Director at Meta IT North America

Ensuring your local leaders are effective from afar

Local leaders aren’t just participants – they’re your business expansion champions. As such, they need to be armed with the tools, knowledge and resources to not only excel during the expansion phase, but in every future race. Here are three key strategies to help your local leaders achieve enduring success.

1. Communication & collaboration

Effective communication is the backbone of successful global operations. To ensure your local leaders are effective from afar, utilize a range of communication tools and platforms that keep global teams aligned.

Promote the use of collaboration tools that facilitate seamless information exchange between HQ and local entities. Regular virtual meetings, video conferences and project management platforms can help bridge the geographical gap, allowing for real-time updates, discussions and problem-solving.

Cybersecurity leader Arctic Wolf has undergone several successful expansions, doubling its employee base every year since 2019. Dan Deeth, Senior Director of Corporate Communications, shared how communications and culture played a key role in their growth in a recent podcast interview.

2. Diversity & alignment

Building diverse and balanced teams is crucial for local leaders to thrive in a global context. While local expertise is valuable, it’s equally important to integrate core members from your headquarters into the team. This blend of perspectives ensures alignment with both local market nuances and overarching company objectives.

Consider organizing workshops and strategy sessions that bring local leaders and global counterparts together. These sessions can help set goals that resonate with the unique characteristics of the local market while ensuring they align with the broader company mission and vision.

3. Physical presence & community engagement

Establishing a physical presence in the local market is a strategic move that can significantly enhance your local leaders’ effectiveness. This includes opening offices in Canada, creating a tangible and visible commitment to the region. A physical presence signals to potential partners, clients and the community that your company is invested in their success.

Bosch and EPAM Systems, two companies that expanded to Waterloo, successfully balanced their business operations with active community involvement. Bosch supports local initiatives such as Women in STEM and contributes to the intellectual community, while EPAM Systems has designated their local office as a learning hub for adults and children in the community who want to learn about technology.

" My local network was invaluable for finding office space, establishing our legal entity and hiring the first few people. "

David MacFarlane

Former General Manager for ESCRYPT Waterloo (now ETAS, a Bosch subsidiary)

Cases for an HQ leader

While local leadership can be advantageous, there are situations where it may not be the most effective strategy. Understanding the trade-offs is essential.

In a recent report, former Shopify executive Mark Bergen and Wilfrid Laurier University Professor Nicole Coviello suggest why bringing leaders from home can indeed be a winning strategy for international expansion.

While these reasons make a compelling case for bringing leaders from home, it's important to be mindful of potential biases or barriers that can hinder a local team’s success. Ultimately, the decision to bring leaders from home or hire locally should align with your company's strategic goals and timeline.

Maintaining corporate context: Leaders from HQ are well-versed on the company’s mission, values and the fundamental ‘why’ behind the business. This ensures that the company’s offerings remain relevant and aligned with its core principles in the new market.

Building trust: Existing leaders typically have a strong “trust battery” with headquarters, built over years of experience. This trust not only provides them with credibility but also allows them to bridge the gap between HQ and the new location.

Leveraging relationship skills: Effective international market entry often demands robust relationship skills, particularly in a B2B context. Homegrown leaders, such as top sales directors, have the networking and sales expertise needed to secure contracts and quickly establish a strong local presence.

Source: Going international? Enter with your top talent from home, Lazaridis Institute, 2023

Beyond the finish line

Like a marathon runner setting a steady pace and navigating a challenging course, the journey of global expansion is a test of endurance, adaptability and strategy. The importance of local leaders in this race is undeniable, but no marathon runner achieves success alone.

Seeking guidance from expansion experts and economic development agencies in top expansion destinations like Waterloo is how you’ll end up on the podium. These partners offer invaluable insights, resources and expertise to streamline your expansion journey.

As you embark on your international expansion, remember this: equipped with the right local leaders and expert guidance, your business can cross every mile marker with the confidence you need to achieve global success.

Lace up, lean in and let’s get to work.

We can help.

Let's discuss your expansion goals.

About Waterloo EDC

Waterloo EDC is a free, one-stop concierge service for companies that are exploring business expansion in Waterloo, Canada. Our client-first approach focuses on your company’s specific needs, and we have a team of experienced economic development experts who will guide you through every stage of the expansion process.

In addition to helping you find the best candidate to lead your local expansion, we can help you:

Connect with legal, financial and recruitment experts
Collect custom expansion data including cost comparisons
Take advantage of government support and incentives
Explore real estate options and locations
Access top talent and local leaders
Integrate into the local business community

We’ve helped international businesses invest almost $2B in our community since 2016. Our clients include Toyota, MasterClass, EPAM Systems, Beckhoff Automation, BOSCH, SAP, Siemens and many more.

We’re excited to hear about your expansion goals.