Why international organizations often function differently than expected

Is your subsidiary or local representative office really operating the way you expect it to as a
CEO? And do you truly understand the root causes behind success – or problems – in all their detail?

In mechanical engineering, as well as in many other industries, companies operate internationally through their own subsidiaries and local entities. At headquarters level, management often relies on assumptions such as: “Local management understands our strategy and implements it accordingly.”

Recently, during an internal discussion, we touched on a topic that has been on both of our minds independently for quite aome time.

As is often the case, the conversation initially revolved around the well-known challenges: high energy costs, increasing bureaucracy, rising labor and wage expenses, and the overall difficult situation of German industry.

However, the longer we talked, the clearer one point became – one that is often overlooked in many discussions:
A significant share of the problems companies face is self-inflicted.

Misunderstandings, friction losses, and untapped potential

Communication is widely regarded as one of the core skills of modern organizations – and at the same time, one of the biggest weaknesses in day-to-day operations. Despite having more communication channels than ever before, companies still experience daily misunderstandings, delays, and friction that cost time, energy, and ultimately money.

A seemingly simple everyday example illustrates the problem clearly:
When asked, “When will you be there?” the answer is, “I’ll be there shortly.”

For the sender, this statement is correct – from their perspective. The recipient, however, interprets it differently. The result: mismatched expectations, frustration, and wasted time. What is said – and what is received – are often two different things.

“We need the part immediately!”

I heard this sentence countless times during my time as an after-sales manager. And very often, it was not about complex assemblies or special solutions, but about seemingly insignificant spare parts – components whose absence is enough to bring an entire production line to a standstill.

It is precisely these parts that pose major challenges for purchasing, planning, and warehouse organizations in mechanical engineering – and at the same time represent a key lever for customer satisfaction and competitive differentiation.

For customers in the machinery and plant engineering industry, three factors matter most after the machine has been sold: price, quality – and speed. While price and product quality are often at the center of attention, in after sales it is increasingly
response speed that determines customer satisfaction, loyalty, and repeat business.

Whether it is a spare parts inquiry, technical support, a customized solution, or a simple follow-up question: long response times are now a clear competitive disadvantage. Customers increasingly compare service performance across brands – and expect fast, reliable answers.