The purpose and direction of organizations, particularly in regional branches operating far from their headquarters, can often become misaligned over time. While giving these branches autonomy to chart their own course may seem advantageous initially, it can lead to significant issues as time passes.

The core problem is that while these regional organizations might generate profits, they often diverge from their original purpose. Although they contribute financially to the parent company, they may fail to advance the company’s strategic goals in their designated markets, leading to inefficient use of resources.

Throughout my career, I’ve observed several regional trading organizations fall into this trap. This is especially common in context-driven societies, such as many in Asia, where business decisions are heavily influenced by personal relationships and trust.

For instance, I once encountered a company originally focused on industrial goods that had branched out into trading wines. They did so not because it aligned with their core business but because a long-standing and loyal customer requested it. In another example, during my management of a regional operation, I discovered that one of our regional subsidiaries had shifted to trading third-party products, essentially becoming a generalist distributor. Although this move was profitable, it did not contribute to expanding the parent company’s business.

Such shifts, while financially rewarding in the short term, can dilute an organization's focus and ultimately undermine its long-term goals.

It is crucial for trading organizations to ensure that the business activities they choose to pursue are the result of deliberate, strategic decisions rather than unintended deviations from their original course. Given the challenges organizations often face in scrutinizing and realigning their operations, the expertise of capable external consultants can be invaluable. External consultants bring fresh perspectives and diverse experiences, helping organizations realign with their core mission and enhance overall effectiveness.