Category: business strategies

Culture and Diversity in Business: do you have what it takes to understand your customers, partners and employees?

As a member of the PCC (psychology of culture change group) we often discuss key issues around international business and sustainability, diversity and importantly culture.

I have worked in 160 countries around the world, these learning’s are certainly a key to being successful in business internationally and to understand the role of culture in international business.

Whatever sector you are operating in, cultural differences will have a direct impact on your profitability. Improving your level of knowledge of international cultural difference in business can aid in building international competencies as well as enabling you to gain a competitive advantage.

The values and behaviours that contribute to the unique social and psychological environment of an organisation is a key part in the understanding and communication of culture.

Organisational culture includes an organization’s expectations, experiences, philosophy, and values that hold it together, and is expressed in its self-image, inner workings, interactions with the outside world, and future expectations. It is based on shared attitudes, beliefs, customs, and written and unwritten rules that have been developed over time and are considered valid. Also called corporate culture, and has a major bearing on productivity and employee engagement, it can be shown in the following:

• the ways the organisation conducts its business, treats its employees, customers, and the wider community,
• the extent to which freedom is allowed in decision-making, developing new ideas, and personal expression,
• how power and information flow through its hierarchy, and
• how committed employees are towards collective objectives.However, on the one hand where it is important to be aware of cultural differences of different countries, on the other, it is also hard to be aware of every single aspect of each country’s organisational culture. Therefore, you should be aware of the key factors that have a direct impact on business.

These are:

1. Communication is the key to success for any business, whether you are operating nationally or internationally, but when operating internationally it becomes even more important due to language barriers.
2. Being aware of basic customer needs is an important aspect as this will give the advantage of conveying your message. In simple terms, if you are aware of the customer’s cultural background, then you will be able to adopt better and more suitable advertising methods.
3. Body language is another key factor in cultural difference. As different countries have different ways to convey or share their message, for instance in Germany people tend to speak loudly when sharing ideas, whereas in Japan people speak softly, it very important to know what your body language should be doing when interacting with people whether it’s your business partner or an interviewer.

Before launching a marketing campaign, always conduct research to become aware of your target audience since customer demand, decision-making, gender views and ideologies greatly vary in cultures.

Culture affects the way people think about business in their own society. An awareness of cultural attitudes toward business will help you communicate efficiently and effectively when working with people from other cultures. For example, Asian cultures, including Japan and China, promote teamwork and cooperation in business environments while Western businesses promote individual action and responsibility. Understanding these values will help you to create an effective communication strategy with partners from these regions.

All of us global minds have been confronted with cultural differences at some point. They often lead to amusing misunderstandings, but can also have a serious impact on your career if you are not aware.

 Cloud computing, the technology that allows software and data to be shared on the internet, is now being adopted by large companies that say this infrastructure has become their top technology investment this year. So are large companies keen on adoption because of the savings on IT expenditure?

With all the media speculation and reality across cyber-crime, hacking and phishing, is the technology also fraught with challenges and privacy risks?

In a survey of 4,500 high-level IT professionals in 83 countries, ISACA (the Information Systems Audit and Control Association) discovered that organisations fear the risks of using public cloud services.

69% of North American respondents believed that the risks of using the cloud outweigh the benefits. In all regions, data security was the most widely cited risk—with European respondents also being wary of the specific dangers that surround breaches of their customers’ and employees’ privacy.

One of the biggest impediments to public cloud computing adoption is the calculation of additional risk from all the dangers associated with online internet crime.

Analysing all the risks, here’s a list of five risks any business faces as a customer of a public cloud service:

• Shared access
• Virtual exploits
• Authentication, authorisation and access control
• Availability
• Ownership

The mobility of smart phones, netbooks, tablet PCs and other portable devices has fundamentally changed the when, where and how of our computing lives. And with cloud services, the source for data and applications used by these devices can be anywhere, too. The flexibility of cloud to scale bandwidth up or down at will, and its affordability as a pay-as-you-go service, have resulted in an interconnected, intelligent approach to smarter computing.

The benefits of cloud computing are well-recognised. In fact, cloud computing ranks among the most popular new IT initiatives, with 66 percent of midsize companies implementing cloud strategies, according to IBM’s study, “Inside the Midmarket: A 2011 Perspective.” Yet the excitement about leveraging cloud’s economies of scale to lower total IT costs and improve agility is often tempered by concern that this external delivery of services could compromise security.

​Cloud may seem new, but the fact is companies have outsourced services and technology for years. Providers already deliver hosted technology offerings that are located offsite with client access via the Internet. This is a common scenario for services such as remote storage or hosted email and other software as a service (SaaS) solutions. And just because companies may give up some control to the provider when they move to a cloud-based environment (just as they give up some control in any outsourced arrangement), it doesn’t mean they have to compromise on security.

Although there are additional variations, let’s consider the three main types of cloud service and deployment models: software as a service (SaaS), platform as a service (PaaS) and infrastructure as a service (IaaS).

Each version has its own level of control for the provider and the company purchasing services, but all cloud services can help companies increase agility and boost efficiency by removing the burden of managing all of their own IT. This frees up organizations to do more with less and stay focused on their core competencies.

Software as a service (SaaS) puts most of the responsibility for security management with the cloud provider and is commonly used for services such as customer relationship management and accounting. This popular option is considered low-risk because it primarily deals only with software and not hardware or storage. With SaaS, companies are able to control who has access to these cloud services and how the applications are configured. The complexity of software installation, maintenance, upgrades and patches, meanwhile, is automated and handled by the provider.

In a smarter business world—the when, where and how of living and working is more instrumented, data-driven and interconnected than ever before-cloud computing can be a powerful way for companies to be more agile, effective and efficient.

Starting a business from the ground up is an exciting and daunting challenge for both first-time and experienced entrepreneurs.

Running a company is a complex undertaking with many requirements, one of which is building a technology infrastructure that supports both connectivity and flexibility.

Money can be tight in the early stages of business development, so entrepreneurs sometimes have to be creative, especially when it comes to investing in pricey technology.  What many business owners don’t know is that it is possible to build an integrated office, accessible from anywhere, without building a complicated and expensive network.  Using the latest wireless technology, it is easier now more than ever to maximize productivity and speedy access to data with a minimal investment of capital.

Some entrepreneurs are naturally tech-savvy. For the rest of us, technology seems like just one more daunting task to master. Even choosing the right cell phone or PDA, such as a BlackBerry, has become a complex and time-consuming effort. But when you’re running a business, you need to keep up a certain level of professionalism from the start-up, especially when it comes to tech basics like e-mail, websites, and communications. Fortunately, there are countless programs you can tap into for help on tasks ranging from e-mail blasts to telephone conference calling to website add-ons, even with limited technical know-how.

I will share 10 tips for building a connected business:

1. Don’t miss important calls

2. Don’t limit yourself to desktop Internet access

3. Never get lost when handling business

4. Leave e-mail management to the experts

5.  Don’t attempt to be a network administration professional

6. Connect directly with your wireless phone

7. Have a backup plan for your communications system

8. Stay connected to industry news from just about anywhere

9. Save money by making unlimited calls to your office landline number

10. Secure your mobile phone

Of course, these are just a few tips that you can adopt. Communication and technology are fundamental in today’s business world. Fortunately, advances in wireless technology can really help small business owners stay connected and coördinate with clients and employees while simultaneously growing the business to help you communicate via e-mail, the web and the phone with professionalism; even if your company is just one or two employees strong.

Talk to fellow business owners, search the internet, and ask for recommendations when other business requirements arise along the way; chances are there’s a company that will cater to your needs. And remember, perception is everything. Retailers and customers will take you more seriously if you already look like an established, profitable business they can rely on!

I was recently having dinner with a very good friend of mine who is an aspiring lawyer discussing the subject of;  is a mentor really necessary for children, teenagers, post-grads and adults. It was a fascinating discussion that caused much debate for hours.

We examined the current world we live in, which is a world that is focused on the things that are new, fast and most innovative — but there was also something to be said about looking back in time and how life has changed through the generations.

We discussed that in society the older generation rarely used coaching or mentorship as a succession plan to their careers, mentors provided newer employees with information and support they really needed to succeed and move up the ranks in an organisation. But the employees who did engage with mentorship saw the benefits of the mentor-employee relationship, thus, the benefits were not just for the employees; generally the company saw some significant engagement benefits as well.

At its most basic, the mentor-protégé relationship is one of information sharing. When the mentor works at the same workplace as the protégé, that means he or she will be able to share details about the way the workplace functions that may have taken the protégé years to figure out. This can enrich the protégé’s understanding of a subject in ways that may not have been possible in the classroom, or help the protégé understand a topic in a way she may not have considered. In short, the additional knowledge helps employees become more well-rounded and think more critically about problems and solutions.

At one point, the mentor was probably in a similar job or a similar position as the protégé, and thus has intimate knowledge of what it takes to move up the ranks. Mentors can be great sources of information on what steps the protégé needs to take to move up in the company and the dynamics of making one decision over another. And since the mentor will also have an understanding of the protégé’s skill set and ambitions, the mentor relationship makes it easier for companies to identify future leaders, or match employees with the right job within the company.

Often, all it takes for an employee to succeed is the knowledge that someone believes in his or her abilities. The mentor-protégé relationship helps to foster that. Managers should be responsible for motivating employees through positive reinforcement, but in the midst of looming deadlines or an excess of work, that can get thrown by the wayside. That is where the mentor relationship — which is often fostered outside of regular work hours — can come in handy, to boost morale when it needs boosting. Another positive thing about mentoring: it’s contagious. When a protégé has a positive mentor relationship, he or she may find ways to mentor others.

In some cases mentorship can often mean more than one person, both internal within the organisation and external and for very difference reason of mentorship, balancing technical and emotional stability.

When employees have a mentor to whom they can turn when they have a question or concern, they do not need to spend a lot of time seeking out the answers to their questions. Mentors may not have all the answers, but they can help you find them. When there’s less confusion about the work at hand or managers have to spend less time explaining a job, a business’ productivity can increase. And since mentoring can improve employee retention, your productivity will further increase because you won’t be constantly re-training employees.

An employee benefits from a mentoring relationship because he has someone with greater knowledge and experience to turn to for advice. While a mentor will not do the employee’s job for him or her, the mentor may demonstrate a task, guide the employee through solving a problem, or critique the employee’s work. A mentorship may help an employee feel less isolated at work, too, and encourage him to interact more with others. A mentor can offer an employee with tips on career growth and introduce the employee to other professionals. As the employee matures in his career, a mentor may remain a valued adviser to the employee.

The employer of a mentored employee gains from greater productivity in the workplace. As employees turn to their mentors for advice, they make fewer mistakes on the job, cutting losses to the employer. Employees in mentoring relationships tend to have greater job satisfaction as well, which can mean a more positive work environment. Employers might also notice less turnover of employees as workers feel a greater loyalty to the company. A company might even use its mentoring program to attract new employees.

Jeff Myers, http://www.summit.org/announcements/new-incoming-president-jeff-myers/, has a great quotation “Mentoring is the cultivation of young adults, the tender caring for and nurturing of them so that they will grow, flourish, and be fruitful.”​

Who are your mentors and most importantly, are you a mentor to our next generation?

Is middle management still necessary or do we just need a few strong managers to guide a company?

I have been engaged with some very interesting debates over the last few weeks on the subject of leadership and the shift in the leadership models within business today.

I think it is clear: a company needs leaders—not managers. From the top down, every employee has the opportunity to lead, starting with the organisation of one within the larger organisation that we call “Mr Me, Ltd.” Every person is responsible for shaping and creating their own future with collaboration and some help in the making.

What does that look like? We trust and then we empower. You know how leaders will typically say “I empower my people”—and then they do not? The tendency is all too common. The minute there is a mistake it’s like a rope around your neck that rebounds back—you either get your head taken off, or you get pulled back so hard the natural reaction is to buckle down and become “less engaged” instead of growing to “maturing growth.”

At this point, your entire company is flat.  With no hierarchy, everyone leads within their areas of stewardship and responsibility.  Many will have excess capacity and offer to help another teammate or even go to another department to ask how they can help.

Then there is the temptation to micromanage, which makes people so fearful of making a mistake, they do not dare create something courageous.

Top-management greed is corrosive but in some important sense the greed is not systematic. There are certainly many firms, doubtlessly a majority, where those at the top are sensitive to these issues and believe in shared pain and some measure of equity. There has, however, been a structural shift in the circumstances of middle managers, which leads them to feel more distant from their leaders.

This is the disruption of career paths and the increased difficulty in making a move from the middle to the top. Middle managers today have less reason to believe that they are on a trajectory that will take them to the top and, therefore, they have less reason to identify with their bosses.

Just who are middle managers? It is important to note that though middle managers make many decisions, and many important ones, the context in which they make those decisions is not of their own making. Middle managers do not set the organisation’s strategy, nor do they decide which markets to enter, with whom to merge, how much to invest, and what technology to use.

Senior managers, in the words of Harvard Business School professor John Kotter, “set agendas,” and in doing so shape the direction of the organisation.  Do middle managers do anything similar? In fact, it turns out that the answer is “Yes.” They make decisions about resource allocation that are central and strategic, albeit at a lower level and with much less visibility than decisions made by senior managers.

We live in an era in which CEOs are glorified. It would be foolish to argue that the CEO is not relevant to organisational performance and it would be equally foolish to claim that no firm should ever reduce its managerial ranks. But the fundamental spirit of the times is wrong. As a group, middle managers are central, indeed crucial, to an organisation’s success.

Most sizable organisations have a management hierarchy that includes several if not dozens of managers, below the executive team or owners. As organisations have found ways to recover from the global recession and remain competitive, the costs of a significant management structure becomes questionable. Some would argue that middle management is no longer necessary and should be abolished.

A number of significant organisations are downsizing or removing middle management structures. For example, the digital-security giant Symantec has completed a restructuring process that saw middle management reduced by as much as 40%. The world’s biggest appliance making company, Haier, in China, has reorganised the company’s workforce into 2,000 self-managed teams that are responsible for not only production but for profit and loss and they are paid on performance. Online retailer Zappos, a company obsessed with customer service has moved to eliminate traditional managers, done away with the typical corporate hierarchy and job titles, and now has an approach that has been termed “holacracy.” This move gives employees more of a voice in the way the company is run.

It may be an ideal time to re-examine the purpose and structure of management for organisations, one that better suits the times and needs of modern organisations and their customers and employees.

I like Jack Welch quote that states “Leaders are generally not judged on their personal output. What would be the point of evaluating them like individual contributors? Rather, most leaders are judged on how well they’ve hired, coached, and motivated their people, individually and collectively—all of which shows up in the results.”

A very good friend of mine who lives in Sedona – Arizona has recently been globe-trotting the world on a series of learnings. I was fascinated to speak with her last week and we discussed many subjects and the topic lead into deep conversation on can you merge your business life with your social life.

With all the technology available online you have to ask think that this should be possible?
Social media enables you to have business associates and friends that are not dictated by geography or circumstance. And to me, the ability to find people with whom you have a kinship, regardless of where they live is an extraordinary opportunity.

There are relationships I have developed via the social Web that are incalculably helpful to me in business and personally. Some of those relationships transcend the Web, as I’ve been fortunate enough to put names to avatars with many of the people I have personification to know and respect online.

The big question that is often asked with corporations and business owners on social media strategy is “how do I balance my personal and professional life online?”
Surely, no one wants to know what I’m doing on the weekend?

Actually, they do. You have probably heard the saying that people don’t hire companies, they hire people. It is why “chemistry” with the client is so critical in professional services firms. Why would you not want to pre-establish chemistry and commonality with your prospective friends and clients online?

The fact is your personal and professional lives are colliding and integrating more and more and all the time.

In a socially connected world, where countless opinions and options are just a finger swipe on a mobile device away, differentiation is harder than ever.

Your personal life? Your professional life? One and the same. I know that’s often uncomfortable. But it’s the truth.

However, In theory, separation is a good thing. With more employers lurking on social profiles and more people over-sharing online, it just makes sense to keep some things private. However, the reality is that sometimes the online tools make it difficult to split your networks. Here are five tips to help you get closer.

1. Use different networks for different purposes
2. Create a Facebook personal profile AND brand page
3. Push your business contacts to Twitter
4. Tweak Facebook privacy settings
5. Take your private life offline altogether

It is a true fact that everything we share is in the “public domain,” so we need limit our shares, what we say or stop altogether. You can also judge the value of a social network based on how well it fits your content and strategy. If you create content that your audience loves, you’re likely to find your audience on social networks that love sharing your particular style of content—video, images, long-form, etc.

Here’s a helpful way of looking at it, courtesy of Jason DeMers at Search Engine Land. He broke down social networks into seven different types, each with their own characteristics.

1: Kitchen-sink networks: Twitter and Facebook

2: Image-based networks: Pinterest, Instagram, Tumblr.

3: Video networks: YouTube, Vimeo, Vine

4: Business-focused networks: LinkedIn

5: SEO and authorship networks: Google+

6: Location-based networks: Foursquare, Yelp

7: Niche networks: Reddit

According to data pulled together by Digital Insights, here’s the breakdown for the social networks with the most monthly active users:

Facebook: 1.28 billion
Google+: 540 million
Twitter: 255 million
Instagram: 200 million
LinkedIn: 187 million
Pinterest: 40 million

How do you keep your business life separate from your private life?