Thursday, 31 July 2008
X, Y And Z
Society is made up of saints and sinners, all trying to live together. Business too is pluralistic with situations of competition and conflict and career development with staff made up of both Theory X and Theory Y type people. Responsibility for recruitment and selection in workplaces rests on owners, directors and managers. It is incumbent on them to ensure that all involved perform to a certain standard. The standards will first have to be set to meet business aims and objectives. They have a duty and a moral obligation to meet those objectives. Incoming professionals and other workers will be met by a new culture. Socialisation and acclimatisation are necessary in this kind of new situation. It may also involve a programme of Theory Z and Kaizen techniques to realize the right kind of transformation. These are often successful and continuing professional development is good for those who work at those kind of competitive levels. On the shop floor, if there is one, it will more a case of golden rule management, motivation, team working, knowledge of results, recognition and credit, attitudes, fair and equitable treatment, feedback, using the right controls and incentives and getting the psychological contract right. These things are necessary to maintain some kind of quality of working life. It does not mean resorting to management styles that put production before people, deny workers rights, decent pay or working conditions. Desperate measures do not work in the long run. It may also send out a signal that competitiors can pick up on and use for their own advantage.
Wednesday, 30 July 2008
Recognising Opportunities
A farmworker working in a field is very lucky to find treasure trove or some valuable object or artefact lying on the ground or in the soil. He does not set out to find something or even to look for something but finds it anyway. It happens by chance but he is very happy to find it. It could be worth a lot of money. The farmer or landowner may try to stake a claim to it. The worker will do everything he can to keep it or even keep a share in it. Entrepreneurs knows what they are looking for in businesses and new products. It is their living. They have a set of criteria against which to measure each opportunity. When an entrepreneur finds the right opportunity a bid is made. If luck is with them they get the business or product or start a successful new business. Both are situations where people are extremely happy to find something of great value. Such things then may be planned or unplanned, deliberate or emergent. If you can take these opportunities as they arise you may be able to make a better future life for yourself.
Tuesday, 29 July 2008
Synergistic Working Relationships
Working together is often said to be better than the sum of the parts. It is described mathematically as 2+2=5. The word used for this is synergy. It is from the Greek word 'sunergos' which means 'working together'. It can be interpreted as people working together and in business as two or more businesses working together or interacting. It can also be applied to team working or to a production line or any system with each individual part contributing to the finished product.
The actors in a synergistic system may work better if inspired by a charismatic leader whose sanctity, heroism or exemplary character provides the social power base for inspirational new enterprise, renewal or turnaround. Those situations require the combination of both inspirational leadership and the synergies of working together in difficult situations. They can make complex and difficult situations seem simple. They can condense complex ideas into simple phrases. They can be great people to have around but they are no guarantee of success. We have all heard of the guru that turned out to be a disappointment. Let's work together and do our best to succeed. We may have an inspiration in our midst.
The actors in a synergistic system may work better if inspired by a charismatic leader whose sanctity, heroism or exemplary character provides the social power base for inspirational new enterprise, renewal or turnaround. Those situations require the combination of both inspirational leadership and the synergies of working together in difficult situations. They can make complex and difficult situations seem simple. They can condense complex ideas into simple phrases. They can be great people to have around but they are no guarantee of success. We have all heard of the guru that turned out to be a disappointment. Let's work together and do our best to succeed. We may have an inspiration in our midst.
Monday, 28 July 2008
Small Is Beautiful
Small movements can have an effect on the whole of society. They can grow from being almost invisible to universal proportions. Social movements and civil society organisations of the Mercosur region campaigning against FTAA or those campaigning against the many negative aspects of globalisation at WTO, IMF, World Bank and TNCs, the women's liberation movement for women's rights, the labour movement for workers rights and universal suffrage, or new religious movements like Focolare all started from almost nothing to what they are now and can have a great impact affecting society and its future.
Getting the mix right is important. A potentially great idea will come to nothing in the wrong market or environment or the wrong kind of management and support. The problems might be external, internal or a combination of both. Pressure from below may be a requisite for meaningful policy change in many areas of social, economic and political life. They all seem to want to create a better world though there are significant differences in what form it might take and how to go about doing it. It is generally recognised that land reform is required for poverty reduction. Social movements and civil societies have been very influential in it. They are also involved in efforts to change international trade rules, debt relief, global taxation, anti-corruption and fair trade. Let us hope that the efforts of these worthwhile movements will bear fruit in these areas as well.
Getting the mix right is important. A potentially great idea will come to nothing in the wrong market or environment or the wrong kind of management and support. The problems might be external, internal or a combination of both. Pressure from below may be a requisite for meaningful policy change in many areas of social, economic and political life. They all seem to want to create a better world though there are significant differences in what form it might take and how to go about doing it. It is generally recognised that land reform is required for poverty reduction. Social movements and civil societies have been very influential in it. They are also involved in efforts to change international trade rules, debt relief, global taxation, anti-corruption and fair trade. Let us hope that the efforts of these worthwhile movements will bear fruit in these areas as well.
Friday, 25 July 2008
Earthen Vessels
When confronted with stressful situations we can enter a 'fight or flight' syndrome. Stress is when the pressure exceeds the ability to cope. The word comes from the Latin 'stringere' meaning to tighten. We can run from the causes of stress or meet them head on. There are both physical and behavoural symptoms of stress and a number of illnesses resulting from it. It can affect job satisfaction and performance. Other effects are absenteeism and employee turnover. The sources of stress include role ambiguity and role conflict, relationship problems and work/life imbalances. People cope differently with stress. They can be classified into two main types. Type A people are active and dynamic are more stress prone, Type B less so.
In medicine, a crisis can be looked at as the period during which doctors can determine whether a patient stands a good chance of recovery or not. Once the critical period is over the chances are known and the doctors can say if the patient will survive or not.
A crisis-growth model was also developed for businesses by Greiner. It is the evolution-revolution theory that businesses go through periods of crisis followed by periods of growth. Competition analysts use Porter's 5 forces model to develop competitive strategies for business start up, survival and growth.
We occasionally find ourselves in difficulties on all sides, with problems, crises, stress and conflict and in competitive markets. We need to have inner power and strength to get through stressful and difficult times. Stress management programmes can help. They can be work-place based interventions through job redesign and job rotation, proper placement of staff and relationship methods and individual based interventions like relaxation techniques. People also find great strength through spiritual paths to inner strength and healing like prayer and meditation. We are only human beings in frail mortal flesh and though we might have power and influence given to us we should still be careful to look after ourselves. Stress and conflict can affect our thinking so in looking after ourselves we may be able to better look after the interests of others.
In medicine, a crisis can be looked at as the period during which doctors can determine whether a patient stands a good chance of recovery or not. Once the critical period is over the chances are known and the doctors can say if the patient will survive or not.
A crisis-growth model was also developed for businesses by Greiner. It is the evolution-revolution theory that businesses go through periods of crisis followed by periods of growth. Competition analysts use Porter's 5 forces model to develop competitive strategies for business start up, survival and growth.
We occasionally find ourselves in difficulties on all sides, with problems, crises, stress and conflict and in competitive markets. We need to have inner power and strength to get through stressful and difficult times. Stress management programmes can help. They can be work-place based interventions through job redesign and job rotation, proper placement of staff and relationship methods and individual based interventions like relaxation techniques. People also find great strength through spiritual paths to inner strength and healing like prayer and meditation. We are only human beings in frail mortal flesh and though we might have power and influence given to us we should still be careful to look after ourselves. Stress and conflict can affect our thinking so in looking after ourselves we may be able to better look after the interests of others.
Thursday, 24 July 2008
Relationship Orientation
Working on good business and marketing relationships, maintaining friendships, social networking, building them up and going beyond simply honouring contracts to making them special and long lasting can have long lasting beneficial effects on the business. A good customer base will be a safeguard against difficult times. The stronger the bonds the better it will be. To many people this is not new and is natural for many. The message has more relevance to those who have forgotten it or never heard it. The symbol of marriage from Ted Levitt is a good way of looking at it. It is important managers, directors and ministers emphasise the importance of good internal and external working relationships and support it. As tacit knowledge within a business it can be permeated through the organisation by training and development and socialisation. It should become part of the culture with everyone involved. Deliberate insensibility should not be tolerated as customer relationships are so vital. Symbols and images can help people reflect and help the message penetrate more deeply.
Wednesday, 23 July 2008
Prune Properly And Bear Fruit
There is a trend in busines to delayer and downsize. It is important to get it right. You might have to block out your own personal preferences and consider things on their proper merits. You should make sure you do not dispose of the wrong people because you prefer someone else. Proper pruning will bear more fruit.
It is the same with products and businesses and with disciplinary procedures. There is a process for people. It is in labour law. It involves representation for the worker and the company and possibly ACAS and the trade unions. Hearing both sides is the best policy so that tragic mistakes can be avoided.
Products should not be immediately disposed of if they fail to succeed in their market. Try other markets, countries and regions. Modify the product, develop it, do some research. Dogs and problem children should also be given a chance before you harvest and divest. They may come good and grow with the proper management.
It is the same with products and businesses and with disciplinary procedures. There is a process for people. It is in labour law. It involves representation for the worker and the company and possibly ACAS and the trade unions. Hearing both sides is the best policy so that tragic mistakes can be avoided.
Products should not be immediately disposed of if they fail to succeed in their market. Try other markets, countries and regions. Modify the product, develop it, do some research. Dogs and problem children should also be given a chance before you harvest and divest. They may come good and grow with the proper management.
Tuesday, 22 July 2008
Money Or Something More
Money is the main reason people go to work. It is not the only reason, but the main one. The rational-economic theory is basic Taylorism. Once the basic survival needs are satisfied there are social needs as well. The Human Relations school promote the social view. Maslow's hierarchy is well known. Self-actualisation is as the top of the pyramid. It may also be seen as a goal. Blocked motivation can produce either frustration and negative responses, or positive constructive behaviour.
Goal achievement at work and in life depend partly on career choice. Many people want to achieve something in life. They feel they have some kind of role to play. Arnold, Cooper and Anderson suggest that understanding your self, attitudes, abilities and interests, ambitions, limitations, knowing the requirements of the career, the conditions of success, the advantages and disadvantages, opportunities and prospects and the many different lines of work together with how they all relate to each other are key to successful career choice. How we construct our world and make sense of it also has an influence over our decisions.
These cognitive abilities are important in our learning processes. Most cognitive psychologists recognise three stages in the learning process. The perception stage involves our attention to stimuli, the mentally active stage is when we make sense of all the information coming in and the last stage is the restructuring and storage phase of information processing. Learning is about constructive changes in behaviour and adding to knowledge as we go through life. Kolb's learning cycle says that there is no end to learning. We need to study and explore. He also emphasised the importance of reflection and internalisation. The new knowledge gained is also useful in identifying problems in the learning process.
If there is something you want to achieve, whether you realise what it is or not yet, the right motivation can help achieve it. Your cognitive abilities will help you realize it when you find it.
Goal achievement at work and in life depend partly on career choice. Many people want to achieve something in life. They feel they have some kind of role to play. Arnold, Cooper and Anderson suggest that understanding your self, attitudes, abilities and interests, ambitions, limitations, knowing the requirements of the career, the conditions of success, the advantages and disadvantages, opportunities and prospects and the many different lines of work together with how they all relate to each other are key to successful career choice. How we construct our world and make sense of it also has an influence over our decisions.
These cognitive abilities are important in our learning processes. Most cognitive psychologists recognise three stages in the learning process. The perception stage involves our attention to stimuli, the mentally active stage is when we make sense of all the information coming in and the last stage is the restructuring and storage phase of information processing. Learning is about constructive changes in behaviour and adding to knowledge as we go through life. Kolb's learning cycle says that there is no end to learning. We need to study and explore. He also emphasised the importance of reflection and internalisation. The new knowledge gained is also useful in identifying problems in the learning process.
If there is something you want to achieve, whether you realise what it is or not yet, the right motivation can help achieve it. Your cognitive abilities will help you realize it when you find it.
Monday, 21 July 2008
On Behalf Of Poor Farmers
Poor farmers often suffer at the hands of powerful landlords. Africa has a high percentage of people employed in agriculture. It also has some of the poorest countries in the world. Those with the highest proportions of poor people are also those with the highest percentages in agriculture. In Asia, high and sustained growth has helped lift millions of poor people out of poverty. It is especially true of China and Vietnam. They also have millions employed on the land. Globalisation can help in poverty reduction. Agriculture can also help. There is however a mistrust of the private sector. Poor people say that the best way to escape poverty is self-employment. Enterprise requires a strong economy. As Hilary Benn once said, social justice should be provided on the economy not at the expense of it. To ignore it is to make poor countries rely on aid indefinitely. Infrastructure and the support of the financial sector are also vital basic conditions for long term success of a private sector, both MNEs and SMEs. Those excluded should be included.
If inequality is high and poverty reduction low it should be addressed. It could start with action for access to land and opportunities and changes to the power structures for a greater say in the decisions that affect their lives. Social and economic progress need political will behind them. Constant adaptation is also important in developing countries.
The Doha Round did not deliver on its promise because high agricultural subsidies in developed countries prevented growth in poor countries. Poor farmers were unable to compete. Rural and agricultural investment is key. Much investement in developing countries is inward as some have adopted protectionist policies to develop their economies without interference. Opening up to free trade might leave them vulnerable to exploitation by predatory global businesses and governments.
Poor definition of property rights is another problem poor farmers face in poor countries. They also need access to reliable market information and markets, research and development not only that can help them but actually aimed at them. The gap between rich and poor countries continues to grow. The gap between rich and poor within those countries also continues to grow. Attitudes need to change. The WTO, World Economic Forum, FAO and Defra should be working to reduce world poverty. They stand to be condemned if they don't.
If inequality is high and poverty reduction low it should be addressed. It could start with action for access to land and opportunities and changes to the power structures for a greater say in the decisions that affect their lives. Social and economic progress need political will behind them. Constant adaptation is also important in developing countries.
The Doha Round did not deliver on its promise because high agricultural subsidies in developed countries prevented growth in poor countries. Poor farmers were unable to compete. Rural and agricultural investment is key. Much investement in developing countries is inward as some have adopted protectionist policies to develop their economies without interference. Opening up to free trade might leave them vulnerable to exploitation by predatory global businesses and governments.
Poor definition of property rights is another problem poor farmers face in poor countries. They also need access to reliable market information and markets, research and development not only that can help them but actually aimed at them. The gap between rich and poor countries continues to grow. The gap between rich and poor within those countries also continues to grow. Attitudes need to change. The WTO, World Economic Forum, FAO and Defra should be working to reduce world poverty. They stand to be condemned if they don't.
Friday, 18 July 2008
Politics And International Marketing
Business today is international. New markets are opening up, new ideas, alliances, contracts. Host governments take political actions against foreign companies to control entrants and keep them in line. According to Jeannet and Hennessey these government actions include jaw-boning, buying only from local domestic suppliers, non-tariff barriers, subsidies and other free gifts or incentives, demanding some degree of local content in the product or process, operating restrictions, conditions where ownership has to include a local element, boycotts and take-overs be it expropriation, confiscation or domestication. The motivations for these political actions vary from self preservation and security, to economic reasons like prosperity, prestige and ideology and to other reasons like cultural identity. Jaw-boning is the most lenient. It is an informal intervention, often without any legal basis, to prevent activities, though legal, because they are contrary to their interest or goals. It will appear a slight over-develoment of legislation to take such action against an entrant but some actions may be unacceptable to a host country. Controversial activity will attract criticism in a host country. Labour conditions in some parts of the world are unacceptable in other cultures. Globalisation is creating a new economy where standardisation and harmonisation are among the battlegrounds for codes of ethical behaviour. When disputes arise over controversial behaviour or activities timely interventions can heal rifts, save the operation and extend the life cycle.
Thursday, 17 July 2008
Hermeneutics Of Development
Social and economic development is necessary for growth and stability and for deliverance from the cycle of war and famine. Rostow gives an historical perspective with the stages of economic development. First there is the traditional agrarian society living at subsistence level, then with philosphical and cultural change come the preconditions for take off into self sustaining growth. Then take off or 'industrial revolution' with mechanisation, manufacturing and the move to cities and towns. The drive to maturity is characterised by new technology and a constant supply of new products. The age of mass consumption shows a high standard of living and an increase in consumer durables and services. It is an attempt to generalise from experience. It is not without its critics. Other theories focus on stages of development but from diffrent perspectives but all argue for broadly similar identifiable patterns of growth.
Development and peace go hand in hand. You can achieve peace by defeating your enemies and increasing your population but when it is beyond your power you are helpless. Peace seems a long way off and life is very difficult. Peace movements of mainly middle class radicals in third countries can help. Leaders of the parties may have to compromise and renounce their personal will, guided their own conscience, judgement and freedom, not coercion. We have to learn meekness and humility over anger and hate. Plato's ideal state was ruled by a philosopher not an uncompromising tyrant. There should be an equitable distribution of power to prevent the mobilisation of bias and non-decision. A quantitative analysis can be very easy. A qualitative analysis is more demanding.
Development and peace go hand in hand. You can achieve peace by defeating your enemies and increasing your population but when it is beyond your power you are helpless. Peace seems a long way off and life is very difficult. Peace movements of mainly middle class radicals in third countries can help. Leaders of the parties may have to compromise and renounce their personal will, guided their own conscience, judgement and freedom, not coercion. We have to learn meekness and humility over anger and hate. Plato's ideal state was ruled by a philosopher not an uncompromising tyrant. There should be an equitable distribution of power to prevent the mobilisation of bias and non-decision. A quantitative analysis can be very easy. A qualitative analysis is more demanding.
Wednesday, 16 July 2008
Bring In The Professionals
One of the significant disadvantages of family businesses is the lengthy period of uncertainty and accomodation associated with professionalisation. This can still be a problem even when the need to bring in outside professional management is recognised and acknowledged. Delegation and the devolution of authority is difficult. Bringing the new members into what were previously the most confidential parts of the business is even more difficult. It involves a new way of operating and a new way of life. The outsiders have to be trusted and some kind of communications developed if the professionalisation process is to be successful. New people will also have to show they are worthy of such a place of honour. The future of the business may be entirely in the hands of the newcomer from outside. The decision about which professional management, what kind and how much to bring in may depend on whether the business is local, national or international. Different factors will have to be considered in either case. Professionalisation can bring continuity and success.
Tuesday, 15 July 2008
Long Term Partnerships Are Good
Strategic alliances are relationships between a number of parties to achieve pre-agreed goals such as to compete with bigger companies, while remaining separate businesses. They are examples of co-operation rather than competition.
Another way for businesses to expand is through mergers and acquisitions. They may be opportunistic or strategic. According to National Statistics during 2007 UK companies bought 441 companies abroad worth 57.8bn, foreign companies bought 269 companies in the UK worth 82.1bn and UK companies acquired 869companies in the UK worth 26.7bn. They are a way of gaining a controlling interest in a company in another country. Ultimate ownership might also stay in the country when the M & A involves companies from the same country. In hostile take-overs the bid is originally rejected or made without the board's knowledge. The bid is maintained if the company really wants the take-over to succeed. It may involve quietly buying shares on the open market or persuading the shareholders to replace the board. Financiers are less likely to back hostile take-overs. There may be grounds for tragedy when the causes are archetypal of worldliness, greed and injustice. The dignity of the human person demands freedom from coercion and those involved are bound in conscience. Good work is worthy of praise.
Another way for businesses to expand is through mergers and acquisitions. They may be opportunistic or strategic. According to National Statistics during 2007 UK companies bought 441 companies abroad worth 57.8bn, foreign companies bought 269 companies in the UK worth 82.1bn and UK companies acquired 869companies in the UK worth 26.7bn. They are a way of gaining a controlling interest in a company in another country. Ultimate ownership might also stay in the country when the M & A involves companies from the same country. In hostile take-overs the bid is originally rejected or made without the board's knowledge. The bid is maintained if the company really wants the take-over to succeed. It may involve quietly buying shares on the open market or persuading the shareholders to replace the board. Financiers are less likely to back hostile take-overs. There may be grounds for tragedy when the causes are archetypal of worldliness, greed and injustice. The dignity of the human person demands freedom from coercion and those involved are bound in conscience. Good work is worthy of praise.
Monday, 14 July 2008
Cities Under Tension
Society is full of tensions and divisions. Society, its cities and communties however came together because man is a social and political animal. The moral intentions were basically 'good'. Cities grow and evolve. The bigger the city the more divisions, disputes and law cases. There are values and dangers to social life such as suspicions and enmities. Family ties are important, though not absolute. You might even find enemies in your own household through disagreement and change.
The only struggle necessary is that against injurious and tyrannical violence against the oppressed. We suffer as long as vice resists grace. Empty ceremonies, sham policies and schemes that oppress and mistreat the poor and helpless people are wrong and should be deemed unacceptable. There is a set of imperatives to follow. There should be concern for helpless classes and the economically weak, genuine gestures of reconciliation, not sham, the exercise and defence of utility, justice and rights, exploring and implementing synergies from reasoning and working together. The struggle is not the goal. It involves risk and reward. We each have our gifts of skills, money, power and position, but their fruit is in their right and good will and use. Some people think of this as radical but it is well known from the Prophets and Apostles, Augustine, Aquinas and Pascal. The divisions are regretable, but are always found on the road to the goals of reconciliation, healing and peace.
The only struggle necessary is that against injurious and tyrannical violence against the oppressed. We suffer as long as vice resists grace. Empty ceremonies, sham policies and schemes that oppress and mistreat the poor and helpless people are wrong and should be deemed unacceptable. There is a set of imperatives to follow. There should be concern for helpless classes and the economically weak, genuine gestures of reconciliation, not sham, the exercise and defence of utility, justice and rights, exploring and implementing synergies from reasoning and working together. The struggle is not the goal. It involves risk and reward. We each have our gifts of skills, money, power and position, but their fruit is in their right and good will and use. Some people think of this as radical but it is well known from the Prophets and Apostles, Augustine, Aquinas and Pascal. The divisions are regretable, but are always found on the road to the goals of reconciliation, healing and peace.
Friday, 11 July 2008
Company Of Wolves
It is important for new businesses, new start ups, first timers particularly to forget any preconceived ideas you had about starting a business. Then you can start with a blank piece of paper and you and others can write your strategy and business plan on it. There is competitive rivalry for scarce resources and also for customers so strategy and tactics are important and getting advice and suggestions from experienced professionals can help. The founders and family of existing businesses can also help by providing core values that endure over time, give continuity and a long term perspective. Talking and listening in early stages will do no harm. It will increase your competence and performance in communication which is very important.
Decision making and referring back to decision trees may help oversome mistakes in future. Perserverance through strategic thinking and tactical management, continuous personal development, kaizen, action research are some of the ways to keep the business going. Day to day management may take up all your time but it might help occasionally to look at the long run because all inputs are variable and change is possible if need be. The pressures for change are both internal and external. You may need to make performance improvements through changes in operational cost and efficiency, and perhaps in received wisdom. It may not be true wisdom. Changes in attitudes, behaviours and motivation, knowledge and skills constantly need updating. Externally change is necessary to remain competitive to keep up with technological advances and the process of globalisation. Demographic changes, tastes and social attitudes are also continually changing in an economy that is increasingly demand driven.
You should get rid off and guard against pride and complacency and taking success for granted and corporate anorexia. Corporate anorexia according to Evans is the delayering the company of its most important parts and delayering the memory, history and conscience of the middle management who are wrongly considered as superfluous. It also means the delayering of the means of perpetuating the company and responding to shocks and unpleasant surprises. Retaining the core competence of the company is the best policy. Look after you key personnel, find success and then find happiness again.
Decision making and referring back to decision trees may help oversome mistakes in future. Perserverance through strategic thinking and tactical management, continuous personal development, kaizen, action research are some of the ways to keep the business going. Day to day management may take up all your time but it might help occasionally to look at the long run because all inputs are variable and change is possible if need be. The pressures for change are both internal and external. You may need to make performance improvements through changes in operational cost and efficiency, and perhaps in received wisdom. It may not be true wisdom. Changes in attitudes, behaviours and motivation, knowledge and skills constantly need updating. Externally change is necessary to remain competitive to keep up with technological advances and the process of globalisation. Demographic changes, tastes and social attitudes are also continually changing in an economy that is increasingly demand driven.
You should get rid off and guard against pride and complacency and taking success for granted and corporate anorexia. Corporate anorexia according to Evans is the delayering the company of its most important parts and delayering the memory, history and conscience of the middle management who are wrongly considered as superfluous. It also means the delayering of the means of perpetuating the company and responding to shocks and unpleasant surprises. Retaining the core competence of the company is the best policy. Look after you key personnel, find success and then find happiness again.
Thursday, 10 July 2008
The Workman Deserves His Keep
The relationship marketing process starts with customer acquisition. You can advertise, network at events or online, call people. Sometimes they respond often they don't. Winning customers especially profitable ones is an important and difficult job. Once you have got customers or a client group you have to keep them. That can be the difficult part. It is wise to explore common ground. If the partnership is ineffective it will not last. Seek out trustworthy people. Trust and commitment are two of the key features in a profitable working marketing relationship. Work on the relationship and keep it good. So much is going on in markets you may need to keep a delicate balance. Be hospitable. If you are made to feel unwelcome, leave it. You should be sure to leave no cause for bad feeling or harm or retribution. You should remember the good. It may have been a good relationship once that brought profits to your company. We learn as much as we can from the things that come our way. Business or marketing relationships are an education. Every case is different. If everyone puts in the hours no one can complain. The workman deserves his keep. Skill and ability may be better but effort and a bit of luck are welcome as well.
Wednesday, 9 July 2008
Size Matters
It has been asked many times whether a company can ever be too big. Companies grow and become more diversified and divided and branch out. Tesco and GE are two examples of businesses that have been accused of being too big. It is argued in turn that properly managed size should not really be a problem. As an observer at the small business and one man band end of the size spectrum we see companies being broken up and sold, operationally or functionally divisionalised, undergoing business re-engineering and structural reform and being divided into international or regional divisions.
Small enterprises are at the same time trying to grow through new products and breaking new ground in new and developing markets. Maintaining good working business and marketing relationships with internal and external contacts is what matters. It doesn't matter what criteria you use for size - turnover, balance sheet, number of employees, market capitalisation. If you want to grow you will need to find customers and keep them. Integrity is important in human and marketing relationships. A lot of companies have a set of core values that they maintain through thick and thin. The right inputs will reap their rewards.
New divisional heads are emissaries and ambassadors for their company and its mission and their country. The pressures on companies to perform well and ethically are growing. Both in this country and overseas it is the uneducated, marginalised, and those alienated from leadership and power who need thinking about as much as anyone. They will feel the impact of business strategy and operations more than anyone else. It is always a great achievement when diverse groups are brought together and agreements made where everyone is happy. That should be the aim at the centre of their activities rather than power and greed.
Small enterprises are at the same time trying to grow through new products and breaking new ground in new and developing markets. Maintaining good working business and marketing relationships with internal and external contacts is what matters. It doesn't matter what criteria you use for size - turnover, balance sheet, number of employees, market capitalisation. If you want to grow you will need to find customers and keep them. Integrity is important in human and marketing relationships. A lot of companies have a set of core values that they maintain through thick and thin. The right inputs will reap their rewards.
New divisional heads are emissaries and ambassadors for their company and its mission and their country. The pressures on companies to perform well and ethically are growing. Both in this country and overseas it is the uneducated, marginalised, and those alienated from leadership and power who need thinking about as much as anyone. They will feel the impact of business strategy and operations more than anyone else. It is always a great achievement when diverse groups are brought together and agreements made where everyone is happy. That should be the aim at the centre of their activities rather than power and greed.
Tuesday, 8 July 2008
Kings And Golden Calves
The increasing process of secularisation leaves many people without any definite direction in life. They start looking for political and religious leadership and inspiration. It is not always there. The Combined Code and the setting up of the Nolan Commission are signs that something needs to be done. Concern and solicitude should be extended to these crowds of people. It is a problem that should be seen as an opportunity. There is a lot of work to do but it is the kind of work that is both psychically and physically demanding.
The idols of silver and gold were made by workmen, they cannot be God. The rival ideologies, philosophies and theologies conflict with each other. The plurality of doctrines leads to confusion and error for those with no knowledge. We should perhaps not be against them as such, even though they may be dangerous, but against the uses to which they are put. Erroneous doctrines can't really help. People begin to see something special in successful people. They are often controversial people, charismatic, occasionally acquisitive and competitive. There is no sure way of knowing them. Unless they come with good references.
The idols of silver and gold were made by workmen, they cannot be God. The rival ideologies, philosophies and theologies conflict with each other. The plurality of doctrines leads to confusion and error for those with no knowledge. We should perhaps not be against them as such, even though they may be dangerous, but against the uses to which they are put. Erroneous doctrines can't really help. People begin to see something special in successful people. They are often controversial people, charismatic, occasionally acquisitive and competitive. There is no sure way of knowing them. Unless they come with good references.
Monday, 7 July 2008
Developing Better Relationships
Business and marketing relationships are often referred to in terms of marriage. The term was first used by Professor Ted Levitt in his HBR article 'After the sale is over'. The sale marked the consummation of the courtship after which the marriage begins. The relationship between business and customer and one business and another have also been analyzed in terms of stages of relationship building. Channel relationship between businesses often display features of channel dominance where one business dominates the others often for its own ends. Strategies can be developed to improve the situation for the smaller, less powerful businesses in the chain. Customer relationship management (CRM) can also be managed to benefit the customer. Amazon were the first to use relationship management software successfully. Now more and more online and offline businesses are developing CRM techniques profitably for both business and customer. The shift from subordination to intimacy is on.
The relationship does not end when the sale is made. Business relationships were once a transaction based relationship but RM and CRM methods are increasingly used to make the relationship lengthy and more intense with a stream of transactions between buyer and seller. Relationship management determines to an extent the quality of the 'marriage'. If it becomes and remains strained or troubled the relationship suffers and becomes tarnished and reputation suffers. As with marriage difficulties and marriage counsellors, businesses also have a range of alternatives to look to if their relationships hit the rocks. Business services and management consulting are two. Time with customers is important. Transaction marketing is dictated by supply and demand and the transactions are time-discrete. Relationship marketing emphasises building up knowledge of customers and their preferences and special requirements and selling not a product but a bundle of products each time as part of a stream. In taking better care of your customers you will avoid another problem identified by Levitt, that of 'marketing myopia', by familiarising yourself with their needs. If you know your customers well it may make it easier to overcome any difficulties. Strong business relationships will increase faith and give assurance especially when there is no coercion.
The relationship does not end when the sale is made. Business relationships were once a transaction based relationship but RM and CRM methods are increasingly used to make the relationship lengthy and more intense with a stream of transactions between buyer and seller. Relationship management determines to an extent the quality of the 'marriage'. If it becomes and remains strained or troubled the relationship suffers and becomes tarnished and reputation suffers. As with marriage difficulties and marriage counsellors, businesses also have a range of alternatives to look to if their relationships hit the rocks. Business services and management consulting are two. Time with customers is important. Transaction marketing is dictated by supply and demand and the transactions are time-discrete. Relationship marketing emphasises building up knowledge of customers and their preferences and special requirements and selling not a product but a bundle of products each time as part of a stream. In taking better care of your customers you will avoid another problem identified by Levitt, that of 'marketing myopia', by familiarising yourself with their needs. If you know your customers well it may make it easier to overcome any difficulties. Strong business relationships will increase faith and give assurance especially when there is no coercion.
Friday, 4 July 2008
Virtuous Or Not
Today as at other times in the past we see the retention of goods or objects lost, fraud, unjust wages, price increases that take advantage of ignorance or hardship, price manipulation to gain an unjust advantage, corruption influencing decision making, poor workmanship, tax evasion, waste and criminal damage. These things occasionally lead to injury and sometimes death through accidents and famine. Corporate social responsibility theories suggest ways of prevention and reparation where business is at fault. Community involvement and social accounting are a couple of ways business can help communities with the impact of business practices. They are not the only way. There are two other systems of values and ethics that can also be analysed.
Business ethics and corporate governance are always coming in for blame. Rightly so in many cases. Critics of business ethics say they are a waste of time as there is already legislation in place, they are therefore a PR exercise bringing no behavioural changes. They also say behaviour and values come from early childhood and codes undermine their right to freedom of choice. Managers are often blamed but the ethics critics suggest that as it is the Board of Directors that is at the centre of the stakeholder model they are to blame. However, we have seen the Harvard Compact of 1990 which influenced the Cadbury Report on 'The Financial Aspects of Corporate Governance' of 1992 and the Greenbury Report and Hampel Committee of 1997 on director's remuneration. It was the King Report that set out guidelines for Codes of Ethics and Affirmative Action, employment policies and environmental issues. Recently the Higgs Report led to the creation of the Combined Code which is where we are at present. Several 'causes celebre' had led to the conclusion that something more had to be done. Unfortunately they have been largely unsuccessful.
In terms of management styles we can see the 'exploitative authoritative' of Likert's System 1 and 'the impoverished manager' of Blake and Mouton's Managerial Grid 1.1 which put both people and production in last place. The bureaucratic style and Theory X management have been called immature by Argyris as they make people dependent passive automatons. We can also see the contextual factors of Herzberg's theory lacking as the content is considered more important. The ethics should be analysed from different perspectives in terms of costs/benefits, respect for rights and distributive justice to get a better picture. There are reasons for these ethical problems. Personal gain, competitive pressures for profit, goals and values, cross-cultural contradictions are a few. Some of these traditions should be disavowed. The cause of many of these problems is that people do not listen. Listening is the most important part of the communication process. If people listened more they would have more to put into practice and set a better example.
Business ethics and corporate governance are always coming in for blame. Rightly so in many cases. Critics of business ethics say they are a waste of time as there is already legislation in place, they are therefore a PR exercise bringing no behavioural changes. They also say behaviour and values come from early childhood and codes undermine their right to freedom of choice. Managers are often blamed but the ethics critics suggest that as it is the Board of Directors that is at the centre of the stakeholder model they are to blame. However, we have seen the Harvard Compact of 1990 which influenced the Cadbury Report on 'The Financial Aspects of Corporate Governance' of 1992 and the Greenbury Report and Hampel Committee of 1997 on director's remuneration. It was the King Report that set out guidelines for Codes of Ethics and Affirmative Action, employment policies and environmental issues. Recently the Higgs Report led to the creation of the Combined Code which is where we are at present. Several 'causes celebre' had led to the conclusion that something more had to be done. Unfortunately they have been largely unsuccessful.
In terms of management styles we can see the 'exploitative authoritative' of Likert's System 1 and 'the impoverished manager' of Blake and Mouton's Managerial Grid 1.1 which put both people and production in last place. The bureaucratic style and Theory X management have been called immature by Argyris as they make people dependent passive automatons. We can also see the contextual factors of Herzberg's theory lacking as the content is considered more important. The ethics should be analysed from different perspectives in terms of costs/benefits, respect for rights and distributive justice to get a better picture. There are reasons for these ethical problems. Personal gain, competitive pressures for profit, goals and values, cross-cultural contradictions are a few. Some of these traditions should be disavowed. The cause of many of these problems is that people do not listen. Listening is the most important part of the communication process. If people listened more they would have more to put into practice and set a better example.
Thursday, 3 July 2008
Show Good Faith - Seeing Is Believing
No one likes feeling alienated. 'Get lost! Go somewhere else!' followed by well known words and phrases that further stress your status as an outsider and your business as interference you know where you stand in their opinion. It can be a waste of time trying to explain you have rights, that your interest is genuine and in their best interest but you have to try. There are many and varied barriers to entry into industries, sectors, cultures and geographical areas. At the interpersonal, intercultural and international levels we come up against what seem to be impossible attitudes, biases, prejudices and doubt. Attitude change and the application of interpersonal skills are very important to the growth and development of business especially if the plan is to expand globally or internationally. Many countries have cultures that are naturally open to outsiders and welcome trade. Others not so much and some not at all. Reassuring people and assuaging doubts may make people more ready to do business. All business now is international so it is extremely important to get accepted in as many places as possible. Language may be one of the easiest barriers to overcome but it is a start. You have to be aware of cultural norms and sensitive to differences so as not to offend anyone. If you do encounter difficulties through social solecisms or offensive behaviour it might be good to have someone who can step in and sort the problem out before it is too late. Showing good faith and getting off on the right foot with people can be a good foundation for the future.
Wednesday, 2 July 2008
Human Resource Skills And Disciplinary Procedures
Offering a substitute for the most basic of elementary principles of social justice and demands made on a business by its workers, partners and customers will do no good. Codes or policies of business ethics, corporate social responsibility and corporate governance and the reports by Hampel, Greenbury, Cadbury and recently the Combined Code have over the years guaranteed a certain level of practice that we can now expect. There is nothing wrong with setting a good example for other staff members. Corrupt and disruptive behaviours are unfortunately found at all levels in business. Popular and unpopular decisions will sometimes have to be made.
Discipline is necessary for the efficient running of an operation and as an outward sign of respect for agreements. The most appropriate form of sanctions for breaking those rules must be decided on by managers. There must be agreed and fair procedures and objectives. Human resource management skills are important. Grievances and disputes concerning such problems as dismissal, termination of contract, lack of capability or qualification, misconduct, hygiene factors, redundancy and statutory bar must be treated with great care. There are also the options of ACAS and the trade unions.
Attitudes can be changed. Stimulus/response methods such as behavioural conditioning have been used successfully. Operant conditioning is an old method for changing a problem attitude or improving existing attitudes by the use of punishments and rewards. Reward strenthens the SR bond and punishment tries to break it. Reward follows a successful response and punishment otherwise. Contiguity and consistency are key in the process. Communicator credibility and attractiveness can make a big difference. They can help keep confusion and fear to a minimum. There are accumulative and synergistic reasons for collective experience improvements and increased job satisfaction.
Discipline is necessary for the efficient running of an operation and as an outward sign of respect for agreements. The most appropriate form of sanctions for breaking those rules must be decided on by managers. There must be agreed and fair procedures and objectives. Human resource management skills are important. Grievances and disputes concerning such problems as dismissal, termination of contract, lack of capability or qualification, misconduct, hygiene factors, redundancy and statutory bar must be treated with great care. There are also the options of ACAS and the trade unions.
Attitudes can be changed. Stimulus/response methods such as behavioural conditioning have been used successfully. Operant conditioning is an old method for changing a problem attitude or improving existing attitudes by the use of punishments and rewards. Reward strenthens the SR bond and punishment tries to break it. Reward follows a successful response and punishment otherwise. Contiguity and consistency are key in the process. Communicator credibility and attractiveness can make a big difference. They can help keep confusion and fear to a minimum. There are accumulative and synergistic reasons for collective experience improvements and increased job satisfaction.
Tuesday, 1 July 2008
Signs And Wonders
In our human life signs and symbols are important. They are part of how we express and perceive reality. Signs have been defined as anything that stands for something to somebody in some respect. Perhaps not the best definition but you can get the general idea. Signs are one of the most important ways that people convey meaning. Marketers transfer cultural meanings to products through signs in advertising. The great religions of mankind use signs to communicate their relationship with God. They can be seen in the chain of cause and effect. They are part of the system we use to communicate meaning to each other. Signs can be expressed in language, gestures and actions. In certain respects everything in nature can be interpreted as a sign. Storm clouds, cosmos, thunder, rainbows, creator, man's intelligence and so on have their signifiers and signifieds. They have both informative, referential and denotative dimensions at the surface level and connotative, symbolic dimensions at a deeper level.
Semiotics is the study of the role of symbols and signs in communication. It is an attempt to understand the way the communications process creates meanings for people through such things as branding. Signs point the way. Economic indicators, road signs and logos are there for us to interpret and use as guides. They may occasionally be difficult to interpret and what they presage is sometimes difficult to negotiate. Some situations may require expert assistance and guidance in others no one could refuse an interpretation. They must be interpreted in some way by somebody.
Semiotics is the study of the role of symbols and signs in communication. It is an attempt to understand the way the communications process creates meanings for people through such things as branding. Signs point the way. Economic indicators, road signs and logos are there for us to interpret and use as guides. They may occasionally be difficult to interpret and what they presage is sometimes difficult to negotiate. Some situations may require expert assistance and guidance in others no one could refuse an interpretation. They must be interpreted in some way by somebody.
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