Going Abroad: How To Plan Effective Trade Missions Monica Rovers Business Development Manager, Energy- The Americas 1 Things to consider         Why Where Who Collaboration Resources Implementation On the ground After the mission 2 Why  Does it fit your mandate?  Are you the right organization to lead the mission?  What is the business need/opportunity?  Investment attraction  Trade  Expansion  Joint ventures  What is your sector focus? 3 Where  Research  Which markets have what your clients need?  What are the obstacles in those markets?  Is it an accessible market? (ex: Brazil vs. Colombia)  What are the tax implications?  Do you need to open an office there?  Do you need an agent in-country?  Do you have local support/resources?  Understand the local culture  Business relationships  Personal relationships 4 Who 5 Who  Mission participants (companies)  Are they serious about going international?  Do they have international business experience?  Do they have the resources to continue to invest in the market and return to the market multiple times before getting paid?  Partners: local and in-country, public and private  Major partner in country (eg: NOC)  Logistics resources  Do you need a consultant in market?  Travel: agent, flights, hotel, transportation 6 On the ground 7 Collaboration  Impossible to achieve without collaboration with all partners  Local companies & government agencies  In-country companies, government agencies& export development agencies  Major partner in country (eg: NOC)  Sponsors 8 Resources 9 Resources  Financial  What is your budget?  Will you charge for the mission?  Will you have sponsors?  Time  At least 3 months  People  Lead  Support  Local  On the ground 10 Implementation 11 Implementation      Engage partners Draft program Arrange logistics Marketing/recruitment Pre-mission orientation  Review program  Country information  Language tips  Business/cultural tips  Maintain regular contact with everyone, constantly confirming  Mission binders for everyone: agenda, contact information, etc. 12 On the ground 13 On the ground       Expect the unexpected Local cell phone Distribution lists Leave an extra day at the end Plan some down time Plan some fun time 14 On the ground 15 On the ground 16 After the mission      Debrief with participants Thank you to all partners When are you going back? Invite them for a reciprocal mission Maintain relationships 17 Contact information Monica Rovers Business Development Manager – Energy, The Americas 403-221-3705 [email protected] 18 International Trade Missions Birgit Klohs President and CEO The Right Place, Inc. A Veteran’s Perspective What to do … what not to do … lessons learned ... and a word on immigration. 20 What to do … • Have a long-term, specific, and defined strategy. • Discuss the possibility with internal and external stakeholders first. • Complete a full audit of your community’s international strengths and weaknesses. • Leverage existing local international businesses and connections. QUESTIONS TO ASK: What do you want to accomplish and where do you want to do it? Is your organization capable of managing an international strategy? What community assets and industries would other countries be interested in? What businesses/resources in your community are already international players? 21 What NOT to do … QUESTIONS TO ASK: • Think short-term. Is your organization and stakeholders ready for a long-term investment? • Bring your entire community. What parties will add the most value and are worth bringing along? • Show up unannounced. • Assume everyone understands American culture. • Assume you understand their culture. • Expect a deal/agreement on your first trip. Who are your prospects and when are they available? Do you understand the culture(s) of the countries you will be visiting? (hint: high school French doesn’t count.) Who are your prospects … and when are they available? 22 Lessons learned … QUESTIONS TO ASK: • Have a “Plan B” for downtime or cancelled meetings. Do you have a contingency plan? • Have an in-country connection. What connections/relationships can you tap in-country? • If gov’t is involved … PLAN EARLY. Will local/state gov’t want to be involved? • Expect and plan for travel delays. How “tight” is your schedule of travel and meetings? • Be prepared to answer anything … from business to culture. Are you prepared to talk about all aspects of your community? • Trade shows are very helpful in developing relationships What events/tradeshows are happening during your visit? 23 A word about immigration. • International reaction to American immigration rhetoric. • Is your community (commerce and culturally) prepared to welcome and support foreign investment and talent? • Do you have local expertise (law and gov’t) to assist international businesses with immigration and visa issues? 24 Thank you. 25 Avoiding “Crises,” Foreign and Domestic Foreign Crisis – events and outcomes associated with geopolitical risk Domestic (i.e., political) Crisis – how the mission will be perceived, and how those perceptions can erode the mission’s and an organization’s effectiveness Domestic crises involve the political fallout from trade missions – when political considerations or sensational reporting detracts and distracts from the success of the mission Avoiding the “J” Word “Torn from the headlines ….” BOSTON, March 11, 2011 — On Friday, Governor Deval Patrick wrapped up his trade mission in Israel, where he traveled in hopes of luring Israeli businesses to Massachusetts and developing economic relationships with Israeli companies. His next stop: Great Britain. Accompanying the governor on the trip are numerous business executives from the Boston area, including Andrew Tarsy, executive director of Boston’s Progressive Business Leaders Network. WBUR’s All Things Considered host Sacha Pfeiffer spoke with Tarsy by phone from Jerusalem on Friday and asked him how he responds to inevitable questions about whether the trip amounts to more than just a junket… Source: WBUR.org Scott, Pals on Jerusalem Junket Gov. Rick Scott is off to Israel, his fourth foreign trade mission. Accompanying the governor will be Senate President Mike Haridopolos, who told gullible Floridians this week that, the idea is to create jobs. The group will travel to Tel Aviv and Jerusalem. In addition to the governor and Senate president and their wives, the junket will include University of South Florida President Judy Genshaft, Republican fundraiser Mel Sembler, Manatee County developer Pat Neal and Fort Lauderdale lobbyists Fred Karlinsky and Bill Rubin, among others. It’s Scott’s fourth trade mission. (Dec. 8, 2011). . Murray leading a junket to explore greater Bay State trade with Finland April 10, 2011 Think Finland and you might think of reindeer, smoked fish, and saunas. But Therese Murray, the Senate president, sees a land of opportunity for Massachusetts businesses. Beginning April 16, Murray will lead a five-day trade mission to the Nordic country, holding a series of meetings with government officials and business executives, with the goal of drumming up investment in Massachusetts’ medical device, research and development, and life sciences industries. BALTIMORE SUN -- JUNE 16, 2011 O'Malley Asia trip: Trade mission or party junket? “Last week Drew Greenblatt of Marlin Steel Wire sent me some pix and videos from Gov. Martin O'Malley's trade trip to Asia. Yesterday he followed up to make sure I got them. As I explained in response, people like me take a dim view of politicians gallivanting around the globe at taxpayer expense…” Foreign travel is always perceived as luxurious and expensive Foreign travel is associated with leisure and a “Club Med” mentality Foreign travel in tough economic times is particularly suspect Trade missions are perceived as “taking time away from more important local duties.” … junket. Complete transparency- to the extent consistent with confidentiality concerns, share agendas, budgets and overall schedules Inform media and encourage dialogue – pre-mission, during the mission and post-mission. Be proactive! Set up a mission website, live Tweets from mission events, etc. Be prepared to defend every agenda item and every meeting – “above the fold” rule Speak with One Voice – one person from the organizing entity should be the “voice of the delegation,” so far as media is concerned Find Allied Business Participants – identify business participants who understand trade missions, believe in them and who can serve as advocates Define and Quantify Mission Successes – number of meetings, prospects identified, agreements signed, attendees at receptions, etc. Track and share results post-mission! Information is the coin of the realm. Be open, be generous, be proactive, be clear, be responsive, keep your commitments. Transparency and openness cannot guaranty favorable treatment, but withholding information and a general air of secrecy will provoke suspicion, ultimately erode credibility and damage your organization and the viability of future projects. Assessing and Dealing with Geopolitical Risk in the Context of Trade Missions Geopolitical risk refers to the potential threat of harm to persons, assets or business interests arising from an unstable or physically dangerous environment. •Political instability – dictatorship, autocracy, heavy-handed rule, lack of representation and political responsiveness that breeds resentment and the potential for popular unrest • Social instability – living conditions, environmental degradation, income inequality breed resentment and potential for unrest • Economic instability – foreign investment and/or fear of foreign “domination” or undue influence can create unsafe environment • Geopolitical instability – when the government’s policies and foreign relationships create an unsafe condition within the country • Natural disaster / risk – when natural disaster or other environmental considerations create risk of harm • Egypt • Afghanistan • Syria • Iraq • Philippines • Mexico • India • Chile • Israel • Japan • Current Travel Warnings – long-term conditions present risk • Travel Alerts – short-term periods of heightened risk • Country Specific Information – background provided on every country “In addition, hooligans, most often drunken “skinheads,” have been known to harass or even attack people whom they believe to be foreigners or members of rival groups. On occasion, U.S. citizens have reported that they were assaulted for racial reasons or because they appeared “foreign.” In addition, U.S. citizens should also exercise caution when congregating in areas known as expatriate hangouts such as restaurants, bars, and discos frequented by high numbers of resident U.S. citizens and/or U.S. citizen tourists, as this could attract unwanted attention from disorganized groups of rowdy patrons seeking to start a fight.” • www.travel.state.gov • www.voyage.gc.ca • Mission Participation Agreement – Terms and Conditions (payment, expectations), Rights and Responsibilities, Release of Liability, Insurance, etc. • Participant Preparedness Protocol – list of key contacts on the mission, in-country diplomatic contacts, establish procedures within the company for operating the company in the absence of key personnel, responding to inquiries, family • Put a Plan in Place - select and train a media spokesperson; nominate a liaison to participant families; nominate a liaison to confer with your country’s diplomatic personnel and to liaise with local government security forces. • Run a Simulation – consider running a simulation of what would happen in the event of a security incident. Do you have all the contact info you need? Do you have back-up contact info? Do you have all the communication tools you’ll need? • Confront the unpleasant possibility that something bad could happen • Gather info on the security environment ahead of time • Encourage participants to review and sign-off/acknowledge risk • Monitor the security situation on ongoing basis • Prepare your action plan, consider a simulation “Missions are much more fun and generally considered more successful when no one gets hurt. It’s always better to be “over-prepared” than it is to be caught in a potentially dangerous situation without having considered what you would do if …” Perry B. Newman [email protected] www.atlanticagroup.com www.atlanticaanalytics.com (207) 553-9228