Global collaboration is becoming a hot topic for venture capitalists whose US-based portfolio companies are expanding into China, India and other regions. I’m attending a gathering of venture capitalists this week, and the kick-off session was about how to expand winning companies globally.
One VC panelist commented that the biggest problem for portfolio companies expanding globally is time zones. He explained that the COO may be in Japan, the CEO in California and the CTO and engineering team in Israel. “It’s so difficult to keep the communication flow among the management team,” he noted. The moderator asked the VC if there were any special tools that help. His response was “getting up early and going to bed late.” Another VC insisted that a range of tools including videoconferencing could close the distance gap for his portfolio companies.
Paradoxically, distance can create value. In The Culture of Collaboration book, I describe how collaborative companies like Boeing, Toyota and BMW leverage time zones, collaborative culture and tools to compress product cycle time. Clearly, chopping many months off a car or airplane development program creates substantial value. In the book, I also discuss Boeing’s use of mirror zones (see my March 16 post).
Even early stage, venture-backed companies can turn time zone differences into assets. The key is for entrepreneurs (with guidance from VC’s) to integrate global collaboration into business models. Start-ups have an advantage over many later-stage enterprises, because they can bake collaborative culture into the company’s DNA right from the start.