Centralise Compliance, Localise Decisions: Gene Grand’s Operating Model for East African Growth

Companies looking to expand in East Africa must navigate a centralised compliance structure versus localised decision-making. Many organizations get this balance wrong by centralising decisions that need local adaptability, and localising those that should remain consistent. Africa is not a single market with minor variations, but fifty-four distinct economies with varying growth rates, consumer behavior, and regulatory environments.

Treating Kenya and Nigeria as the same market, for example, ignores these differences. Compliance architecture, risk management, and reporting standards should be built once and applied consistently across the continent. The company's offer, however, should be tailored to local markets, similar to Bain's approach in India. Pricing, hiring, marketing, and customer decisions should be made by teams who understand the local market best, allowing them to act quickly without waiting for headquarters approval.

A deliberate design of the operating model, with a clear line between central and local responsibilities, prevents drift towards inconsistent practices. This approach avoids the temptation to make exceptions market by market, ensuring a robust, unified framework underpins locally-tailored strategies.