How to lead in EMEA at a time of global cost-cutting
Advice from a community of EMEA VPs
The EMEA Vice President role is a strange one: you have a number on your head but you lead all functions; you’re the face of the company in region but you’re not the CEO; you’re the champion of EMEA in HQ but the champion of HQ in EMEA.
When I did the role myself (at Twitter…long before Elon) I learned that there’s no handbook — peer-learning is the only way to move faster than the speed of your own experience. So at Frontline we often bring together this community of EMEA VPs to meet each other and debate the topics of the day. Our most recent event in London focused on something that’s been on every leader’s mind this year:
How to lead in EMEA at a time of global cost-cutting
We invited three veteran leaders — from Gong, Zendesk, and Twilio — to share their perspective.
The discussion quickly spread from the panel to the audience of EMEA VPs and several themes emerged:
- Act now (the time to wait and see has long past)
- Know where to play offence and defence (prioritising investments is crucial)
- How to get what you need from HQ (“get their fingerprints on the weapon”)
- This too shall pass (be ready for growth to return in 2023)
Below is a selection of quotes and insights from speakers and attendees.
Act now
- “Don’t be like Wile E Coyote, running over the cliff and then realising it’s too late.” If you haven’t already made substantial cuts, plan to do so soon. It’s a rare company that won’t be affected by the economic downturn underway.
- “Compress planning process.” In previous years your annual planning process might have run from Aug/Sept till the end of the year. This year data from September is already irrelevant — aim instead to cut the planning cycle to a few weeks.
Know where to play offence and defence
- “Identify countries/segments in which to play offence or defence.” It’s tempting to assume a crouch position in all markets, but that’s a wasted opportunity. Maybe now is not the time to attempt to unseat an incumbent in your weakest market; but it might be a good time to double down on your strongest.
- “Care for current customers.” They are precious in a downturn. Acquisition will be very tough — advantage favours incumbents and platform players (vs best of breed). Now is a good time to be flexible on terms — they’ll remember you for it. It is certainly not the time to sell shelf-ware, features that are half-baked.
- “If your product drives customer productivity, grasp the moment.” Products that help customers cut costs or improve productivity are gold right now. If you’re lucky enough to sell such a product, take advantage of the moment. You might be one of the lucky companies that should ramp up marketing spend and shape the narrative while others pull back.
How to get what you need from headquarters
- “Get their fingerprints on the weapon.” Make sure you have sponsors in the executive team at HQ. Unless the CEO and C-team feel your EMEA plan is their plan, it runs the risk of being decimated.
- “Know the CEO’s context.” Don’t be the kind of EMEA VP who dials into a Zoom call with the C-team and cluelessly asks for EMEA resources in the run-up to a round of global lay-offs. CEOs are under pressure, make sure to understand how EMEA fits into their growth plans.
- “Be in the room.” Spend time more time than ever at HQ. Now is the time when decisions are being made about layoffs and 2023 company priorities.
This too shall pass
- “The turning point will be in 2023.” After a year of market meltdown and bad economic news, it’s easy for employees to become despondent. There will be a moment in 2023 when companies decide to focus on growth again. Now is your time to lead, that moment isn’t far away.
Conclusion
The best software companies derive about 30% of global revenue from EMEA at steady state and the region should be a company growth driver for many years. But the context has changed and EMEA leaders must respond. Public and private markets are now rewarding “balanced growth” over “growth at all costs” — valuation multiples have compressed 60% this year and free cash flow margin is back in fashion. The best EMEA leaders will acknowledge this global reality, focusing on efficiency gains and positioning their region for renewed growth when we turn the corner in 2023.
Special thanks to Paul Adams from Twilio, Wendy Harris from Gong, and Peter Lorant from Zendesk — every insight came from them and the audience
Stephen and Brennan are partners at Frontline Ventures and co-lead FrontlineX, a fund that helps US companies expand into Europe.
