It is hard to control quality, performance and efficiency when you are placed in thousands miles away like in Europe, thus it is important to have control mechanisms and methods as well as weekly reports and calls.
Together, we work out a plan how we want to implement the transition strategy. For that, we need a clear structure locally in the organization in Mexico. We will set up teams who have responsibilities and make people accountable to execute the tasks.
In addition, you need to inform your employees about the expansion. We will set up a communication strategy which will help you to take the fear and to be transparent about your long term plans. It will also be a chance to find inhouse employees who could be interested in working for a certain time in Mexico.
What do you need to execute a successful expansion? We have listed you up some possible key leaders which you may consider.
- Oversees all projects and responsible for the execution of the expansion project.
Planning transition and transformation
A transition is fundamentally important for the mobilization of personnel (training, distribution of responsibilities, etc.) to prepare the teams and individual persons.
The aim is to be able to introduce “normal” business operations as quickly as possible.
As mentioned in the steps before, the objective is from the first step to implement the company’s values into the expansion plan. Within that, communication is key!
2. Set up contracts
We will support you with a local lawyer to set up contracts with employees or partners in the area of transportation, warehouses, agencies (e.g. freight import / export, HRM, insurances).
In addition, we help you to prepare and submit all the necessary documentation and quality application forms to the Mexican Immigration Department to get work permissions/visas.
3. Communication strategy
To inform your employees about the expansion, we will set up a communication strategy which will help you to take the fear and to be transparent about your long term plans. It will also be a chance to find labor who could be interested in working for a certain time in Mexico.
4. Introduce mission, vision, and values
One of the main advantages to do an expansion rather than offshoring is that if we provide them the appropriate trainings, we ensure that they will be living your organization’s values, mission and vision. This is one of a critical success factor and can lead to your competitive advantage in the long run.
We can ensure in that way to develop your employees to higher performances, which again make sure that there is a better output which again will make your end customers happier.
The logistic center is another critical success factor; warehouse, stocks, return service or general logistics must be established and installed based on your needs.
Once we have founded with our Mexican legal advisor the company in Mexico, we will start with the selected freight partner the transfer of the machines and raw materials. It is vital to set up a timeline as some machines might be newly ordered.
We should be aware that many documentations for custom clearance, insurances, or border matters. In addition, raw materials might be imported from various countries.
Once the machines and raw materials have arrived, we will do the installments of all those facilities and stock the materials.
Facility management (machines, office, IT), Transfer of knowledge & data
We will search B2B partners to buy and install all equipment’s like computer, machines, offices, internet, furniture’s, etc. In addition, it must be ensured to have data transfer from Europe to Mexico.
6. Train Employees
Once we have recruited the new employees, we have to train them, teach missions and visions, regulations, values and of course the operations they have to execute. We must ensure that employees have sufficient information and knowledge to execute their tasks as well as data must be available. Besides that, we will continue with the recruiting process of new employees.
Relocation of Jobs
There might be employees needed from your current company which will be working for a certain stage in Mexico, thus work permissions must be acquired by the government.
7. Optimize Processes & Increase efficiencies
Beside saving costs with cheaper labor force or lower rents, it is also vital to increase the efficiency of your operational processes.
Nowadays, a fundamental rethinking and radical redesign of business processes to achieve dramatic improvements is critical to improve KPI’s like in cost, quality, service, and speed and stay competitive.
However, it often fails because of the resistance of the employees; they are used to traditional processes, they do not want to adapt to new technology because they fear of loosing their jobs, or they do not want to be trained for new tasks.
An expansion to another country opens you the door to exactly do this kind of experimentation without having the fear that people will resist to change. You will hire new workforce oversea with that mindset, people who are willing and are interested in new ways of working.
In addition, such experimentation are not that costly due to the cost structure in Mexico.
You could apply models such as BPMN, Process Mining, or other automated systems which are easy to integrate.
We will evaluate with what (local) partners we should cooperate such as in recruiting, transporting, or assembling processes.
In addition, we will have to open bank accounts, or buying equipments.
9. Insurances & Safety regulations
Besides contracts, insurances as well as safety regulations for employees and branches must be established. We will guide you with our partners what must be considered to be compliant with the Mexican Law.
10. Run Operations
Once everything established, we launch the production which means a successful transition which is fundamentally important for the mobilization of personnel (training, distribution of responsibilities, etc.) and to prepare the teams and individual persons.
Now the goal is to be able to introduce “normal” business operations as quickly as possible.