Learning from experience
Glenn Wright, President and CEO of the Parenteral Drug Association (PDA) recently shared some fascinating insights and lessons learnt from the association’s expansion particularly the establishment of a European office in 1998, a time when the Euro was still not in common circulation. They soon discovered that exchange rates, tax regulations and payment processes were unexpectedly complex. It also became apparent that each country had its own membership rules, languages and tax obligations. The project eventually stalled. When the association returned to the region a few years later, the lessons learned from its first attempt helped it avoid repeating the same mistakes. Although this reintroduction was not entirely seamless, it was much more effective because they had come to understand how important local insights and deep cultural familiarity can be.
A great deal of success can depend on whether you have a knowledgeable individual at the helm. Many associations rely on an expat or a US-based staff member who is eager to lead overseas operations. This may work if that person has extensive regional expertise, but hiring a local champion – or appointing a leader who truly understands both the association’s aims and the host country’s environment – can reduce setbacks significantly. For PDA’s second entry into Europe, a German industry expert with a longstanding history in the association was brought in to re-establish operations in Gleinicke, Germany. The progress was faster, and the misunderstandings fewer, because Georg was already regarded as a trusted figure. It still required substantial investment and time (Glenn recommends a 10-year plan) to build a fully self-sufficient office. There were still banking and taxation issues, employment regulations and the incorporation of a not-for-profit to work through (as Glenn says, “never underestimate taxation requirements and the complexities”) but having an insider eased the association’s path, and that office is on the verge of celebrating its 20th anniversary.
Starting from scratch vs partnering
Many associations are now looking to the Asia–Pacific region as the next logical frontier. Singapore is often cited as a natural hub for regional activities, though other key cities also offer fertile ground. This raises a central question — whether to build an owned office or to partner with an existing local entity such as an Association Management Company. An owned office entails full control over processes and branding. It also demands significant capital expenditure, knowledge of local regulations and the complexity of hiring staff in a new country. An AMC can accelerate entry by offering ready–made operational structures, staff and regional expertise, though it means sharing some authority.
Here, I have seen how important it is to balance subject-matter understanding with operational know-how. I might be very experienced in managing associations, but we are not subject-matter experts, and that is always the biggest weakness at the beginning, where that learning curve starts.”
Asia, by default, is a huge territory. You are talking about very diverse economies, and worst of all, there is no such thing as a single regulatory agency, like the FDA in the US or the EMA in Europe. As Glenn notes, it’s important to realise that every market was very fragmented: “Our team tackled this by targeting multiple countries simultaneously, then refining staffing as needed. We ended up rolling out in several different markets — Singapore, Korea, Japan, and Australia, where we are to date. Then we have some smaller activities in Indonesia and Thailand. We started with a two-man team... so we could cover as many areas as possible and then slowly drove it back to one account director.”
There is no universal template when transferring established programmes to Asia-Pacific, since the structure of each event and training must be adapted to local norms. There is not really a “copy and paste" where we can take an event from the US or Europe and bring it here. It needs to be adjusted. Part of the issue is that some of the experts come from Europe or the US, and that makes it rather expensive at times.
Consider Glenn’s advice when choosing an AMC partner: “You’re going to want to make sure they’re flexible. If you pick the right partner, it’s very positive.” He also notes that, while the investment going in is going to be less, associations need to accept that “it’s going to take several years” before the new office is profitable.
Lessons
Navigating complex regulations and market entry barriers
Legal requirements, tax obligations and reporting norms can differ widely, even within a single region. This can affect everything from how membership dues are collected to the way events are licensed and who has the authority to sign contracts. Associations are sometimes caught off guard if they have not performed a thorough review of local regulations and cultural practices. A singular solution that works in one country may not be valid a short distance away. It can be useful to set up an advisory council composed of local leaders. This provides real-time insights on how best to adapt governance, operations and volunteer engagement. It also helps ensure that changes in local laws do not blindside the association, particularly for those offering education or certification programmes that may require special licensing.
Financial and operational considerations
Budgeting and resource planning are essential when moving overseas. Office rent, staffing costs, taxation and currency fluctuations can quickly inflate a budget. Associations that plan for contingencies often fare better, especially if they aim to extend in-person events to multiple countries or if they are unsure of the immediate size of their potential membership. It is also critical to decide whether you will employ local staff or rely on remote teams. Local employees can offer unmatched cultural knowledge and foster stronger relationships, while remote oversight may minimise overheads but create challenges in communication and governance. Whichever approach is chosen, associations should be realistic about the time it takes to reach self-sufficiency, bearing in mind that many expansions can take years to turn profitable or develop robust membership numbers.
Balancing cost, control and efficiency
Before rolling out any global plan, leaders ought to clarify why a given region is best suited for the association’s mission. There should be evidence of demand from local members, sponsors or partners. The decision between an owned office and an external partnership often hinges on financial risk tolerance and the desire for direct oversight of all operations. Both models can succeed if they align with overall organisational goals. Some associations prefer complete control to protect their brand and maintain operational consistency. Others accept that sharing responsibility with a local AMC may free them to focus on strategy rather than day-to-day management. An expansion should, however, never be pursued solely because other organisations are doing it. Clear objectives, such as membership growth or new educational opportunities, help steer decisions and provide measurable milestones.
Global expansion is a complex journey that can unlock remarkable benefits when approached with patience and a willingness to learn. Associations that excel abroad recognise that every market possesses unique regulations, customs and business practices, and that success depends on respecting those differences. A cautious and respectful mindset allows leaders to adapt strategies more readily and to pivot when unforeseen circumstances arise, such as global pandemics or policy changes.
Associations that plan thoroughly, invest in local intelligence and maintain flexibility in their governance models are well positioned to thrive. It may entail adjusting bylaws to accommodate local boards, or it may require recalibrating financial models in response to exchange rate shifts. Whether you choose to establish a wholly owned presence or partner with an AMC, remember that you will need a long-term view to see meaningful returns. Persistence, thorough research and genuine engagement with local markets can transform an international expansion from a risky initiative into a strategic win for both the organisation and the community it serves.
Watch “Expanding Beyond the USA: Business and Operating Models for Global Growth”. This webinar is part of MCI’s Global Growth series, designed for association executives, CEOs, COOs and board members who are exploring international growth strategies.
If your organisation is expanding into new regions, or looking for global growth, MCI can help. Get in touch today.
Marcel Ewals - Director, Association Solutions Asia Pacific, MCI Singapore
