Photo / Richard Robinson

Photo / Richard Robinson

Short-term thinking is undermining the ability of New Zealand's businesses to make a serious impact internationally.

Finding new ways of boosting productivity and growth is a priority for New Zealand and expanding our companies' international presence is pivotal to this. However, we need to think more strategically about the ways we are approaching overseas markets.

Going global from New Zealand requires new capabilities.

We're creative, innovative producers, but too often fall down when pursuing strategic growth beyond our borders.

In particular, many kiwi companies don't focus on the full life cycle of their businesses and tend to make short-term tactical decisions that can cost them dearly.

The immediate imperative might seem to be entirely around bolstering revenues, improving distribution and getting more products on more shelves. But total shareholder return is unlikely to be maximised by such short-term thinking.

Building equity value is not the same as building revenue on a one-year basis.

To fully mine opportunities, perhaps culminating in an offer from a major overseas firm in your industry, requires developing a complete commercial ecosystem around your business.

Our most successful companies overseas build constituencies across every aspect of their business, including governance, management, branding and marketing, channel partnerships, funding partnerships, media, interest groups and communities, online and off. All these pieces of the networking puzzle combine to build significant equity value over time.

Patient cultivation of networks is also important in building shareholder value.

In a market as vast and complex as the United States, how you access a target customer is a matter of huge strategic importance.

In many cases, our companies can generate sales momentum quite readily in the short term.

But which do you think is most effective in building sustainable, long-term value for your company and your brand: cold-calling the R&D department from New Zealand or being introduced to the CMO by a trusted insider?

My experience with New Zealand Trade and Enterprise's Beachheads programme and through the KEA network confirms that there are many experienced executives in the United States who can offer strategic advice and support for our high growth companies.