Balancing Global Expansion with Cultural Integrity: The Canva Success Story

Canva‘s Global Expansion Strategy: Balancing Cultural Integrity and Business Growth

Introduction

Canva, the multinational design platform, has experienced remarkable global growth since its establishment a decade ago. With operations in eight countries and a workforce of 3,500, the company’s success can be attributed, in part, to its ability to integrate acquired organizations seamlessly into its culture. Jennie Rogerson, the Global Head of People at Canva, recognizes the importance of cultural alignment when formulating an acquisition strategy. She emphasizes the significance of not only finding the right products or services but also ensuring that the acquired team shares Canva‘s values. This approach has proven successful, as evidenced by Canva‘s recent acquisition of the London-based data-visualization platform Flourish.

Why Culture Matters in Acquisitions

Rogerson highlights the pivotal role of culture in acquisitions, asserting that it should be at the core of the strategy. While the primary focus of an acquisition is often on the products or services being acquired, the alignment of values and the integration of the teams are equally crucial. By prioritizing cultural fit, Canva ensures a smooth transition and fosters the rapid integration of new teams. Rogerson’s strategy involves granting the leadership of acquired companies a high degree of autonomy, recognizing their prior success and not interfering with what already works. This strategy mitigates the potential problem of employees holding onto their former company’s culture and not fully embracing the culture of their new organization.

The Evolution of Culture After Acquisition

Rogerson explains that after an acquisition, there is an evolution in the way employees view themselves and their affiliation with the company. Initially, they may identify more strongly with their former organization, but as they collaborate and work together, the distinction fades. It is essential not to eradicate all remnants of the acquired company’s culture in pursuit of a unified culture. Canva actively maintains elements such as company logos on cups and murals referencing in-jokes, recognizing that the harmony between Canva and the acquired company exists because of the unique qualities each brings to the table.

Expanding Cross-Culturally

Culture also plays a pivotal role when expanding through the establishment of new offices in different locations. Canva takes a targeted approach, carefully selecting locations that align not only with talent availability but also with the desired cultural atmosphere. For example, although cities like New York may seem like an obvious choice for many businesses, Canva opted for Austin, Texas, and subsequently opened offices in California. These locations offer a relaxed atmosphere, akin to the company’s headquarters in Sydney, with abundant talent and vibrant dining scenes.

Practical Considerations in Global Expansion

Aside from cultural fit, practical considerations, such as time zones and team collaboration, are vital in planning global expansion. Canva strategically locates functions together to maximize operational efficiency. While each office houses departments focused on operations, legal, marketing, and finance, certain core teams, like product-design engineering, are based in Australia, while the data-visualization team is in London. This containment of key functions alleviates challenges associated with different time zones and facilitates effective team collaboration.

Building a Cohesive Global Culture

To foster a sense of connection among teams spread across multiple time zones and locations, Canva employs a range of working practices. The company establishes ‘campus’ offices, complete with kitchen and common spaces, for larger groups, while smaller groups are provided with co-working spaces, known as hubs. The choice of which type of space to establish is led by the employees in each location, ensuring their needs are met. During the pandemic, when remote work became the norm, Canva placed a strong emphasis on flexibility and connection. The company facilitated virtual interactions through open Zoom links during lunchtime, creating opportunities for employees from different countries to engage in informal conversations. Additionally, Canva‘s numerous online clubs, catering to a wide range of interests, offer colleagues worldwide the chance to socialize and bond.

Nurturing an Evolving Global Culture

Rogerson acknowledges that a common global culture cannot be fully dictated from the top down. At Canva, the company culture is shaped by hiring individuals who embody the organization’s values. As these individuals join the company, they contribute to the evolution of the culture. Canva‘s foundation is built upon two main missions: to become the most valuable company globally and to do as much good as possible. This clarion call attracts ambitious, socially conscious talent, contributing to the company’s growth and maintaining a strong cultural identity.

Editorial and Advice

Canva‘s approach to global expansion provides valuable insights for businesses seeking to expand across cultures. By prioritizing cultural alignment during acquisitions and carefully considering cultural fit when establishing new offices, Canva has successfully integrated diverse teams into a cohesive global workforce. The recognition that culture evolves and that employees play an active role in shaping it is instrumental in fostering a sense of belonging and commitment.

Organizations should consider the following strategies when expanding globally:

1. Prioritize Cultural Alignment

When acquiring new companies, focus not only on the products or services they offer but also on the values and culture of their teams. Cultural alignment can facilitate a smoother integration process and ensure the continuity of success.

2. Embrace Autonomy

Allow acquired companies to retain a level of autonomy and respect their prior accomplishments. Recognize and leverage their strengths rather than imposing unfamiliar practices or systems.

3. Preserve Elements of Acquired Companies’ Cultures

While fostering a unified culture is important, it is equally crucial to respect the uniqueness of each acquired organization. Retain elements that contribute to the overall harmony and integrate aspects that create a shared identity.

4. Select Locations Carefully

Consider cultural fit along with talent availability when establishing new offices in different locations. Opt for cities known for their relaxed atmosphere, talent pool, and vibrant social scenes to enhance employee satisfaction and collaboration.

5. Foster Connection Across Time Zones

Leverage technology and establish virtual platforms to facilitate interactions and build relationships among employees in different locations. Encourage socialization through shared online activities and clubs.

6. Hire Individuals who Embody Company Values

To nurture a strong culture, prioritize hiring individuals who align with the organization’s values and foster an environment where employees feel empowered to shape the culture themselves.

In an increasingly globalized world, maintaining cultural integrity while expanding internationally is crucial for long-term success. Canva‘s success story serves as an inspirational example for businesses seeking to grow across cultures. By placing culture at the core of their expansion strategy, organizations can cultivate a global workforce that thrives on shared values, collaboration, and a sense of belonging.