A single project is finished by a whole team, not individual. But team comprise of individual staffs. Business owners always want to hire the good staffs for their company.
However, you need to pay a lot to hunt experienced experts. And even experienced staffs can also be out of date on the industry sector they work for if they do not learn things themselves continuously and/or get training on specific areas frequently. To be able to build up a good knowledgeable team – for the own benefit of your business and also to compete with others, a qualified training agenda need to be defined and be updated frequently based on the needs of your business.
Any expert in the company can be trainer for junior staffs in specific topics. The topics can be focused on soft skills improvement, technical improvement, business knowledge improvement and so on, depend on the wish and needs of each department. The method of delivering the training can also via many means such as online internal course, internal training session for team, internal training course for whole company etc depending on the target audiences.
Tuesday 16 December 2008
Friday 12 December 2008
Building trust from client – by Quality of Service?
I asked my ex-boss, who is the owner of 4 companies focusing on 4 different sectors on how he could maintain such a good relationship with his clients and earn the trust from them. The sentence he advised is, “bring a cake to your clients sometimes”.
During the time we do business, we get to build a relationship with our customers. Whether they are long-term customers, short-term, big deal or just small deal; the unchangeable from our side is to provide the best service, the best support that we can supply to them. Any project with customers involves a list of steps, in which every single support is important. Your products can be at high quality, your services can be at top – but the way you introduce and deploy it to customer – especially on maintenance phase is the way to please the customers very much.
And also, do not forget to “Bring a cake to your clients sometimes”. We can support or give help on even non-related mutual projects, but on any chance that our capabilities can handle. You bring cake to others sometimes – and sometimes, you might get a cake back!
During the time we do business, we get to build a relationship with our customers. Whether they are long-term customers, short-term, big deal or just small deal; the unchangeable from our side is to provide the best service, the best support that we can supply to them. Any project with customers involves a list of steps, in which every single support is important. Your products can be at high quality, your services can be at top – but the way you introduce and deploy it to customer – especially on maintenance phase is the way to please the customers very much.
And also, do not forget to “Bring a cake to your clients sometimes”. We can support or give help on even non-related mutual projects, but on any chance that our capabilities can handle. You bring cake to others sometimes – and sometimes, you might get a cake back!
Things to prepare for starting up a business
You have ideas on products and/or services that your business will focus on? You have saved enough money to cover expense for a beginning startup period of your business? You also get some initial customers?
Well, those are still not enough for a well-preparation of a startup business. There are much more things that are needed to prepare, keep updated and improved during the life you setup and run a business.
The set of work and tips can be varied from business to business, from individual business owner to another. List below are based on my experience and from a link that I found simple, interesting but sufficient information.
a. Start building up your profile
A website which states clearly vision, list of service/products you provide, how to contact you are a good start for building up the profile.
Also, a pre-sales document package also needs to be built up. It can include a company introduction profile, a product introduction profile, a service introduction profile, user guides, product/service feature list or anything that you think is useful to let others/clients know more and detail about your business
b. Watch your cash flow
Be very careful with the cash flow. In business, there are many things from small to large that need to be handled and it is important to manage the cash within your budget.
c. Use your existing network
One of my friend introduce the concept of “Business to business”, in which any existing business can bring you another business based on its’ current network. In broader view, it is useful to utilize any of your existing network including business, family, friends, colleague, social network for your business. One interaction or relationship can bring you up with many other connections. Although not all connections can be useful or directly or indirectly involved with your business and just simply imagine the number of connections that you can get by utilizing and also extending the existing connections.
d. Be easy to work with and corporate with others
If you just smile when working with others, it is not enough. Teamwork is a very key factor for achieving the goal. When either working within your company or your clients, be teamwork. Things are accomplished by contribution of a group, not a single individual. In order to teamwork well, in my experience, apart from good communication and high responsibility , you need to be corporate with others, eager to share the work and let others feel that they feel happy and easy to work with you.
f. Set your goal
Be SMART. Simply to remember, simple to understand, but efficiently get to the point
• Specific
• Measurable
• Achievable
• Relevant
• Time framed
g. Follow your passion
The word passion itself does cover the key factor for any entrepreneur. You may face success; you may encounter failure and difficulties. But, your passion will drive you to never give up, but learn and be success from failure.
References:
Bart De Waele (2008). 10 tips for starting entrepreneurs. Barcamp Ghent 2. Retrieved 2008-12-10 from http://barcampgent2.wikispaces.com
Well, those are still not enough for a well-preparation of a startup business. There are much more things that are needed to prepare, keep updated and improved during the life you setup and run a business.
The set of work and tips can be varied from business to business, from individual business owner to another. List below are based on my experience and from a link that I found simple, interesting but sufficient information.
a. Start building up your profile
A website which states clearly vision, list of service/products you provide, how to contact you are a good start for building up the profile.
Also, a pre-sales document package also needs to be built up. It can include a company introduction profile, a product introduction profile, a service introduction profile, user guides, product/service feature list or anything that you think is useful to let others/clients know more and detail about your business
b. Watch your cash flow
Be very careful with the cash flow. In business, there are many things from small to large that need to be handled and it is important to manage the cash within your budget.
c. Use your existing network
One of my friend introduce the concept of “Business to business”, in which any existing business can bring you another business based on its’ current network. In broader view, it is useful to utilize any of your existing network including business, family, friends, colleague, social network for your business. One interaction or relationship can bring you up with many other connections. Although not all connections can be useful or directly or indirectly involved with your business and just simply imagine the number of connections that you can get by utilizing and also extending the existing connections.
d. Be easy to work with and corporate with others
If you just smile when working with others, it is not enough. Teamwork is a very key factor for achieving the goal. When either working within your company or your clients, be teamwork. Things are accomplished by contribution of a group, not a single individual. In order to teamwork well, in my experience, apart from good communication and high responsibility , you need to be corporate with others, eager to share the work and let others feel that they feel happy and easy to work with you.
f. Set your goal
Be SMART. Simply to remember, simple to understand, but efficiently get to the point
• Specific
• Measurable
• Achievable
• Relevant
• Time framed
g. Follow your passion
The word passion itself does cover the key factor for any entrepreneur. You may face success; you may encounter failure and difficulties. But, your passion will drive you to never give up, but learn and be success from failure.
References:
Bart De Waele (2008). 10 tips for starting entrepreneurs. Barcamp Ghent 2. Retrieved 2008-12-10 from http://barcampgent2.wikispaces.com
Monday 8 December 2008
Myths about Entrepreneurship
There are a lot of preconceptions, theories and beliefs about entrepreneurship and entrepreneurs. Some may be true, some are not.
Twelve myths mentioned in “Building a dream” by Walter Good are as follows:
Myth 1 Entrepreneurs are born, not made.
Myth 2 Anyone can start a business. It’s just a matter of luck and guts.
Myth 3 Entrepreneurs are gamblers.
Myth 4 Entrepreneurs want to run the whole show themselves.
Myth 5 Entrepreneurs are their own bosses and completely independent.
Myth 6 Entrepreneurs work longer and harder than corporate managers.
Myth 7 Entrepreneurs face greater stress and more pressures, and thus pay a higher personal price in their jobs than do other managers.
Myth 8 Starting a business is risky and often ends in failure.
Myth 9 Money is the most important ingredient for success.
Myth 10 New business start-ups are for the young and energetic.
Myth 11 Entrepreneurs are motivated solely by their quest for the almighty dollar.
Myth 12 Entrepreneurs seek power and control over other people so that they can feel “in charge.”
We’ll discuss, do a reality check and evaluate whether those above myths are true or not in the following posts.
References
Good, Walter S (2003). Building a dream: a Canadian guide to starting a business of your own. 5th ed. Toronto: McGraw-Hill Ryerson.
Twelve myths mentioned in “Building a dream” by Walter Good are as follows:
Myth 1 Entrepreneurs are born, not made.
Myth 2 Anyone can start a business. It’s just a matter of luck and guts.
Myth 3 Entrepreneurs are gamblers.
Myth 4 Entrepreneurs want to run the whole show themselves.
Myth 5 Entrepreneurs are their own bosses and completely independent.
Myth 6 Entrepreneurs work longer and harder than corporate managers.
Myth 7 Entrepreneurs face greater stress and more pressures, and thus pay a higher personal price in their jobs than do other managers.
Myth 8 Starting a business is risky and often ends in failure.
Myth 9 Money is the most important ingredient for success.
Myth 10 New business start-ups are for the young and energetic.
Myth 11 Entrepreneurs are motivated solely by their quest for the almighty dollar.
Myth 12 Entrepreneurs seek power and control over other people so that they can feel “in charge.”
We’ll discuss, do a reality check and evaluate whether those above myths are true or not in the following posts.
References
Good, Walter S (2003). Building a dream: a Canadian guide to starting a business of your own. 5th ed. Toronto: McGraw-Hill Ryerson.
Support System for Entrepreneurs in Jonkoping
Yesterday, I accidentally found some useful information for those who want to start up a business in Jonkoping. It is about support system for entrepreneurs in Jonkoping. The support system here is well-developed with the network of private companies, government bodies, county governmental bodies, trade unions, non-profit organizations and higher education. The creation of JIBS and SMED (Small and Medium Sized Enterprise Development) are results of two projects formed to strengthen the region and its businesses.
The most important actors in the support system in Jonkoping are as follows:
References
Larsson, L (2008). The Support System for Entrepreneurs and Businesses. In McKelvie (6th ed), Entrepreneurship and Business Planning. Jonkoping.
The most important actors in the support system in Jonkoping are as follows:
- Science Park
- Jonkoping University / JIBS
- SMED (Small and Medium Sized Enterprise Development)
- The County Council
- The County Administrative Board
- The Federation of Private Enterprises
- NUTEK – Swedish Business Development Agency
- IUC – Industrial Development Center
References
Larsson, L (2008). The Support System for Entrepreneurs and Businesses. In McKelvie (6th ed), Entrepreneurship and Business Planning. Jonkoping.
Role Models and Support Systems
There are different factors which go in building successful entrepreneurs, such as change from present life style, childhood family environment, education, personal values, age, work history, role models and support systems, moral support network and professional support network which goes in building successful entrepreneurs (Panda, 2001).
According to Hisrich, Peters and Shepherd (2004), one of the most important factors influencing entrepreneurs in their career choice is the choice of role models. Role models can be parents, brothers or sisters, relatives, or successful entrepreneurs in the community. Role models can also serve in a supportive capacity as mentors during and after the new venture is launched. Although this support is necessary for the entrepreneur in every phases of the new venture, it is perhaps most crucial during the start-up phase. Therefore, the entrepreneur should build connections and networks early in the business development process.
Although most networks are not formally organized, an informal network for moral and professional support significantly benefits the entrepreneur.
Moral-Support Network
The entrepreneurs ought to establish a moral support network of family and friends. Their spouses are definitely the biggest supporters. Friends, the key roles in this network, can provide suggestions, advice, encouragement, understanding and assistance. Relatives can also be sources of moral support, especially if they are also entrepreneurs.
Professional-Support Network
The entrepreneurs need advice and counsel which can be obtained from members of a professional support network, such as mentors, business associates, trade associations and personal affiliations.
In conclusion, Hisrich et al. help me understand the importance of the connections and relationships in enterprise setup and growth. Each entrepreneur needs to establish both a moral-support network and a professional-support network so that he / she can acquire information and support for the new venture.
References
Hisrich, R., Peters, M., Shepherd, D. (2004), Entrepreneurship (6th ed.). New York: McGraw-Hill Irwin.
Panda, T (2001). Entrepreneurial Success: Key Indicator Analysis in Indian Context. Scholarly Article.
According to Hisrich, Peters and Shepherd (2004), one of the most important factors influencing entrepreneurs in their career choice is the choice of role models. Role models can be parents, brothers or sisters, relatives, or successful entrepreneurs in the community. Role models can also serve in a supportive capacity as mentors during and after the new venture is launched. Although this support is necessary for the entrepreneur in every phases of the new venture, it is perhaps most crucial during the start-up phase. Therefore, the entrepreneur should build connections and networks early in the business development process.
Although most networks are not formally organized, an informal network for moral and professional support significantly benefits the entrepreneur.
Moral-Support Network
The entrepreneurs ought to establish a moral support network of family and friends. Their spouses are definitely the biggest supporters. Friends, the key roles in this network, can provide suggestions, advice, encouragement, understanding and assistance. Relatives can also be sources of moral support, especially if they are also entrepreneurs.
Professional-Support Network
The entrepreneurs need advice and counsel which can be obtained from members of a professional support network, such as mentors, business associates, trade associations and personal affiliations.
In conclusion, Hisrich et al. help me understand the importance of the connections and relationships in enterprise setup and growth. Each entrepreneur needs to establish both a moral-support network and a professional-support network so that he / she can acquire information and support for the new venture.
References
Hisrich, R., Peters, M., Shepherd, D. (2004), Entrepreneurship (6th ed.). New York: McGraw-Hill Irwin.
Panda, T (2001). Entrepreneurial Success: Key Indicator Analysis in Indian Context. Scholarly Article.
Saturday 6 December 2008
Gnosjö & The Spirit of Gnosjö
In this post, I’d like to give a short introduction of Gnosjö, one of the best known industrial districts in Sweden. The Gnosjö region consists of the four municipalities Gislaved, Gnosjö, Vaggeryd and Värnamo in the Jönköping County in southern Sweden.
In the old days, almost all families here had different companies and there are still many family companies here. According to my friends, who have lived there for several years, many people have come to settle here because of the jobs. During a period with high unemployment in Sweden a few years back, it was found out that one particular area - the region around Gnosjö in Småland - was least affected by the unemployment (Paludan, 2007)
Gnosjö is most widely known for its small businesses and successful entrepreneurship. The small municipality Gnosjö has approximately 350 manufacturing firms and around 10,000 inhabitants, which makes the density of companies to one of the highest in Sweden. The companies in this city have total sales of approx. 6 billion SEK (approximately $ 1 billion). This success has formed an increased awareness in Gnosjö (Pesämaa, Klaesson & Haahti, 2008)
Gnosjö is famous for “The Spirit of Gnosjö”, which means that the people here are very enterprising. Nowadays, the characteristic ingredient of the Spirit of Gnosjö - the unique tradition of co-operation - is still essential (www.gnosjo.se). The spirit of Gnosjö is portrayed in the media in terms of the positive consequences for the region such as large numbers of new companies, high profit levels and low unemployment rates (Sjöstrand, 2008). It reflects the professional skills, hard work, economic practice, humbleness, respect, network, cooperation, entrepreneurship, no hierarchy with powerful people, short distances geographically and mentally, flexibility, artfulness and thinking holistically (Pesämaa, Klaesson & Haahti, 2008).
Lastly, I'd like to recommend “The Spirit of Gnosjö – The Grand Narrative and Beyond” by Caroline Wigren to those who want to know more about Gnosjö and The Spirit of Gnosjö. It received a lot of attention in Sweden, and won her the award for young Swedish researchers in entrepreneurship (JIBS’s website).
References
Paludan, J. (2007). Changing forms of work in the global competition. Retrieved 2008-12-06 from http://www.cifs.dk/scripts/artikel.asp?lng=2&id=1519
Pesämaa, O., Klaesson, J. and Haahti, A. (2008). Board network characteristics and company performance in Sweden: The case of Gnosjö companies and their board members in southern Sweden. Rencontres de St-Gall 2008
Sjöstrand, G. (2008). Industrial districts thrive on gift economies. Retrieved 2008-12-06 from http://www.samfak.gu.se/Faculty+of+Social+science/News_and_events/News/News_Detail/?contentId=813285
The Municipality of Gnosjö's official website www.gnosjo.se
In the old days, almost all families here had different companies and there are still many family companies here. According to my friends, who have lived there for several years, many people have come to settle here because of the jobs. During a period with high unemployment in Sweden a few years back, it was found out that one particular area - the region around Gnosjö in Småland - was least affected by the unemployment (Paludan, 2007)
Gnosjö is most widely known for its small businesses and successful entrepreneurship. The small municipality Gnosjö has approximately 350 manufacturing firms and around 10,000 inhabitants, which makes the density of companies to one of the highest in Sweden. The companies in this city have total sales of approx. 6 billion SEK (approximately $ 1 billion). This success has formed an increased awareness in Gnosjö (Pesämaa, Klaesson & Haahti, 2008)
Gnosjö is famous for “The Spirit of Gnosjö”, which means that the people here are very enterprising. Nowadays, the characteristic ingredient of the Spirit of Gnosjö - the unique tradition of co-operation - is still essential (www.gnosjo.se). The spirit of Gnosjö is portrayed in the media in terms of the positive consequences for the region such as large numbers of new companies, high profit levels and low unemployment rates (Sjöstrand, 2008). It reflects the professional skills, hard work, economic practice, humbleness, respect, network, cooperation, entrepreneurship, no hierarchy with powerful people, short distances geographically and mentally, flexibility, artfulness and thinking holistically (Pesämaa, Klaesson & Haahti, 2008).
Lastly, I'd like to recommend “The Spirit of Gnosjö – The Grand Narrative and Beyond” by Caroline Wigren to those who want to know more about Gnosjö and The Spirit of Gnosjö. It received a lot of attention in Sweden, and won her the award for young Swedish researchers in entrepreneurship (JIBS’s website).
References
Paludan, J. (2007). Changing forms of work in the global competition. Retrieved 2008-12-06 from http://www.cifs.dk/scripts/artikel.asp?lng=2&id=1519
Pesämaa, O., Klaesson, J. and Haahti, A. (2008). Board network characteristics and company performance in Sweden: The case of Gnosjö companies and their board members in southern Sweden. Rencontres de St-Gall 2008
Sjöstrand, G. (2008). Industrial districts thrive on gift economies. Retrieved 2008-12-06 from http://www.samfak.gu.se/Faculty+of+Social+science/News_and_events/News/News_Detail/?contentId=813285
The Municipality of Gnosjö's official website www.gnosjo.se
Self-leadership
This is not another article about the leadership, which we’ve just learned in IBC course. Instead, it is about something more essential and more powerful - self-leadership. If we hope to be effective leaders of others, we must first be effective leaders of ourselves. (Manz & Neck, 1999)
Self-leadership is “the process of influencing oneself to establish the self-direction and self-motivation needed to perform a task” (McShane & Travaglione, 2005). Neck & Houghton 2006 (cited in Manz 1986; Manz and Neck 2004) also conceptualized “self-leadership is a process through which individuals control their own behaviour, influencing and leading themselves through the use of specific sets of behavioural and cognitive strategies”; while Freeman (2004) claimed that “self-leadership is not simply self-discipline; it is a set of well-defined strategies for personal improvement”. In general, self-leadership is process of controlling one’s behaviour to direct and motivate one’s self to improve desirably personal task performance.
Anderson, Manz and Prussia suggested three categories of self-leadership that impact subsequent outcomes are behaviour-focused strategies, natural reward strategies and constructive thought pattern strategies (1998).
References
Anderson, J.S., Manz, C.C. and Prussia, G.E. (1998), "Self-leadership and performance outcomes: The mediating influence of self-efficacy", Journal of Organizational Behavior, Vol. 19 pp.523-38.
Boss, A. D. & Sims, H. P., Jr. (2008). Everyone fails! Using emotion regulation and self-leadership for recovery. Journal of Managerial Psychology, 23: 135-150
Manz, C. C and Neck, P. C. (1999) "Mastering Self-Leadership: Empowering Yourself For Personal Excellence," (2nd Edition). Prentice-Hall, Inc.
McShane, S. & Travaglione, T (2005) Organisational Behaviour on the Pacific Rim, enhance edn., McGraw Hill, Australia.
Self-leadership is “the process of influencing oneself to establish the self-direction and self-motivation needed to perform a task” (McShane & Travaglione, 2005). Neck & Houghton 2006 (cited in Manz 1986; Manz and Neck 2004) also conceptualized “self-leadership is a process through which individuals control their own behaviour, influencing and leading themselves through the use of specific sets of behavioural and cognitive strategies”; while Freeman (2004) claimed that “self-leadership is not simply self-discipline; it is a set of well-defined strategies for personal improvement”. In general, self-leadership is process of controlling one’s behaviour to direct and motivate one’s self to improve desirably personal task performance.
Anderson, Manz and Prussia suggested three categories of self-leadership that impact subsequent outcomes are behaviour-focused strategies, natural reward strategies and constructive thought pattern strategies (1998).
- Behaviour-focused strategy: the strategies focus on self-assessment, self-reward and self-discipline. Particularly, they content realising the long-term goal, self-applying motivated reward methods, decreasing bad habit and practicing desired behavior (Anderson et. al., 1998)
- Natural reward strategies include finding intrinsic reward in the task, enjoying the job setting, and engaging in job- or task-redesign (Boss & Sims, 2008).
- Constructive thought pattern strategies include mental imagery, mental rehearsal, positive self-talk and managing beliefs and assumptions (Boss & Sims, 2008).
References
Anderson, J.S., Manz, C.C. and Prussia, G.E. (1998), "Self-leadership and performance outcomes: The mediating influence of self-efficacy", Journal of Organizational Behavior, Vol. 19 pp.523-38.
Boss, A. D. & Sims, H. P., Jr. (2008). Everyone fails! Using emotion regulation and self-leadership for recovery. Journal of Managerial Psychology, 23: 135-150
Manz, C. C and Neck, P. C. (1999) "Mastering Self-Leadership: Empowering Yourself For Personal Excellence," (2nd Edition). Prentice-Hall, Inc.
McShane, S. & Travaglione, T (2005) Organisational Behaviour on the Pacific Rim, enhance edn., McGraw Hill, Australia.
Motivation
According to Kristine Geimure, “Highly Motivated and Energetic” is one of seven key qualities of a success entrepreneur. To meet that quality, we must find out what motivation is and its importance.
McShane and Travaglion (2005) state that motivation is the physical strength of a person that impacts “his/her direction, intensity and persistence of voluntary behaviour”. Additionally, Coulter and Robbins 2002, p.424 also stated that “The willingness to exert high level of effort’s ability to satisfy some individual need”. Generally, motivation refers to the forces that influence a person’s behaviour and performance to satisfy one’s needs.
Among many motivation theories, we will have a look at one popular theory: the Motivator-Hygiene theory (or Two Factor Theory), developed by Frederick Herzberg. The motivation was defined that inside factors related to job satisfaction and motivation, whereas outside factors connected with job dissatisfaction (Coulter & Robbins, 2002). The following diagram is clearly illustrated what contents in the theory:
The motivators (job satisfaction) are produced by growth fulfilment and work outcome, while the hygiene (job dissatisfaction) is made up by work content. Therefore, that is the reason why motivators are not the same with hygiene. Then improving motivators does not mean that it will decrease job dissatisfaction and similarity in another way (McShane & Travaglione, 2005)
Why is motivation important? Most humans are directed, i.e. we don't walk aimlessly; we walk in a certain direction for a certain reason. Not just things in the here and now, but things in the future we cannot yet see. Motivation is the direction we choose to take. According to McShane and Travaglione (2005), motivation affects work performance. For example, someone who has clear objective, right skills and supportive work environment but without enthusiastic (motivation) probably leads to task incompletion.
As a result, to be an entrepreneur, you must always be on the move, full of energy and highly motivated. Based on a study done by Subodh Bhat and Richard McCline of San Francisco State University, the entrepreneurs were motivated primarily by the desire to create something new, the desire for autonomy, wealth and financial independence, the achievement of personal objectives and the propensity for action ('doing') (2005)
References
Bhat, S. & McCline, R (2005). What motivates an entrepreneur? Retrieved 12-05-2008 from http://www.rediff.com/money/2005/apr/19spec.htm
Coulter, M and Robbins, S. P. 2002, Management, 7th edn., Prentice Hall, New Jersey, U.S.A
Geimure, K. 7 Key Qualities of a Successful Entrepreneur. Woopidoo!. Retrieved 12-05-2008 from http://www.woopidoo.com/articles/geimure/entrepreneur-article.htm
McShane, S. & Travaglione, T (2005) Organisational Behaviour on the Pacific Rim, enhance edn., McGraw Hill, Australia.
McShane and Travaglion (2005) state that motivation is the physical strength of a person that impacts “his/her direction, intensity and persistence of voluntary behaviour”. Additionally, Coulter and Robbins 2002, p.424 also stated that “The willingness to exert high level of effort’s ability to satisfy some individual need”. Generally, motivation refers to the forces that influence a person’s behaviour and performance to satisfy one’s needs.
Among many motivation theories, we will have a look at one popular theory: the Motivator-Hygiene theory (or Two Factor Theory), developed by Frederick Herzberg. The motivation was defined that inside factors related to job satisfaction and motivation, whereas outside factors connected with job dissatisfaction (Coulter & Robbins, 2002). The following diagram is clearly illustrated what contents in the theory:
The motivators (job satisfaction) are produced by growth fulfilment and work outcome, while the hygiene (job dissatisfaction) is made up by work content. Therefore, that is the reason why motivators are not the same with hygiene. Then improving motivators does not mean that it will decrease job dissatisfaction and similarity in another way (McShane & Travaglione, 2005)Why is motivation important? Most humans are directed, i.e. we don't walk aimlessly; we walk in a certain direction for a certain reason. Not just things in the here and now, but things in the future we cannot yet see. Motivation is the direction we choose to take. According to McShane and Travaglione (2005), motivation affects work performance. For example, someone who has clear objective, right skills and supportive work environment but without enthusiastic (motivation) probably leads to task incompletion.
As a result, to be an entrepreneur, you must always be on the move, full of energy and highly motivated. Based on a study done by Subodh Bhat and Richard McCline of San Francisco State University, the entrepreneurs were motivated primarily by the desire to create something new, the desire for autonomy, wealth and financial independence, the achievement of personal objectives and the propensity for action ('doing') (2005)
References
Bhat, S. & McCline, R (2005). What motivates an entrepreneur? Retrieved 12-05-2008 from http://www.rediff.com/money/2005/apr/19spec.htm
Coulter, M and Robbins, S. P. 2002, Management, 7th edn., Prentice Hall, New Jersey, U.S.A
Geimure, K. 7 Key Qualities of a Successful Entrepreneur. Woopidoo!. Retrieved 12-05-2008 from http://www.woopidoo.com/articles/geimure/entrepreneur-article.htm
McShane, S. & Travaglione, T (2005) Organisational Behaviour on the Pacific Rim, enhance edn., McGraw Hill, Australia.
Friday 5 December 2008
Leadership: Reflections on "Middle Management" Guest Lecture
The guest lecture “Middle Management – Real Life” discussed about the significant role of middle managers in today’s business environment. It was presented by Mica Wulff Kamm, The Head of Global Product Management, Home Services, BU Broadband, TeliaSonera.
Who are “Middle Managers”? Steward states that middle managers are employees who have subordinates and manage other people directly, but still with top management above them in the hierarchy (1988).
Until recently, the middle managers were being derided, rejected, disempowered and downsized (Sethi, 1999). They had been the target in downsizing activities of organizations for many decades. However, the middle managers role within today’s organization has changed considerably. According in our guest lecturer, “in knowledge intensive industries middle managers are definitely needed”. Sethi asserts that there is no doubt that middle managers can play a critical role in the success of an organization (1999).
Middle managers play an important role in the change process. Their role as “change intermediary” (Balogun, 2003) will “continue to increase in importance as organizations become increasingly” (Balogun & Johnson, 2004). Mica gave us an example of Skype from her own experience to prove that besides executing decisions made by senior management, the middle managers do have a voice in the decision making with the company (2008).
The middle managers also have a critical role in communication within the firm (Westley, 1990). Role of middle managers as communicators increases significantly when change is under way. They must “strive for clarity” (Mica, 2008) from the top management and break down information in a way that makes sense to the subordinates. Mica agreed that information should be available to everyone. However, Mica added, it would be difficult for a middle manager to define what ought to be closed or open. Therefore, information should be provided in a comprehensible and timely manner (Mica, 2008). If it does not communicate effectively, employees will make assumptions and fill in blanks, which results in gossip and rumors senior management and the organization; that obviously obstructs the change process.
I am really impressed with Mica’s suggestion for the middle managers, which is “getting involved”, being accessible anytime, having an open landscape with no walls, no doors. She mentioned employees usually wanted to talk to the middle managers, who “are structurally closer to their employees and so are likely to be more attuned to their subordinates' emotional needs” (Huy, 2002).
One of the cons that Mica said about middle managers is “no time for refinement” because “the middle managers had a lack of time for this activity due to their coordination/management roles” (Balogun, 2003). From Sethi’s research, to perform the role successfully, the middle managers need to develop or enhance the following critical competencies: Self-awareness and 360-degree awareness; Relationship skills/emotional competence; Advanced communication, coaching & influencing skills; Strategic and creative mindset; Career management skills; Continuous learning; Self-esteem. If middle managers invest in themselves to build those competencies, they will not only help their organizations thrive, but will also develop their own careers (1999).
In summary, this guess lecture was very interesting with valuable shared information / personal experience from the presenter, a successful middle manager. I would say “middle manager” is a strategic asset to any organizations because it serves “as a bridge between the visionary ideals of the top and the often chaotic reality of those on the front line of business." (Nonaka & Takeuchi, 1995)
References
Balogun, J. (2003) From Blaming the Middle to Harnessing its Potential: Creating Change Intermediaries, British Journal of Management, vol. 14, 69-83.
Balogun, J. & Johnson, G. (2004) “Organizational Restructuring and Middle Manager Sensemaking”. Academy of Management Journal. Vol 47, 523-549.
Huy, N. Q. (2002) Emotional Balancing of Organizational Continuity and Radical Change, Administrative Science Quarterly, 47(1), 31-69.
Kamm, M.W. (2008). Guest Lecture November 24th, Middle Management - Real Life, Retrieved 2008-11-27 from Jönköping International Business School’s website
Nonaka, I & Takeuchi, H. (1995). The Knowledge-creating Company: How Japanese Companies Create the Dynamics of Innovation", Oxford University Press
Sethi, D. (1999). Leading from the middle. Human Resource Planning. 22(3) , p. 9-10.
Stewart, R. (1988). Managers and their Jobs (2nd Edition). London: MacMillan Press.
Westley, F. T. (1990) Middle Managers and Strategy: Micro-Dynamics of Inclusion, Strategic Management Journal, Vol. 11 (5), 337-351.
Who are “Middle Managers”? Steward states that middle managers are employees who have subordinates and manage other people directly, but still with top management above them in the hierarchy (1988).
Until recently, the middle managers were being derided, rejected, disempowered and downsized (Sethi, 1999). They had been the target in downsizing activities of organizations for many decades. However, the middle managers role within today’s organization has changed considerably. According in our guest lecturer, “in knowledge intensive industries middle managers are definitely needed”. Sethi asserts that there is no doubt that middle managers can play a critical role in the success of an organization (1999).
Middle managers play an important role in the change process. Their role as “change intermediary” (Balogun, 2003) will “continue to increase in importance as organizations become increasingly” (Balogun & Johnson, 2004). Mica gave us an example of Skype from her own experience to prove that besides executing decisions made by senior management, the middle managers do have a voice in the decision making with the company (2008).
The middle managers also have a critical role in communication within the firm (Westley, 1990). Role of middle managers as communicators increases significantly when change is under way. They must “strive for clarity” (Mica, 2008) from the top management and break down information in a way that makes sense to the subordinates. Mica agreed that information should be available to everyone. However, Mica added, it would be difficult for a middle manager to define what ought to be closed or open. Therefore, information should be provided in a comprehensible and timely manner (Mica, 2008). If it does not communicate effectively, employees will make assumptions and fill in blanks, which results in gossip and rumors senior management and the organization; that obviously obstructs the change process.
I am really impressed with Mica’s suggestion for the middle managers, which is “getting involved”, being accessible anytime, having an open landscape with no walls, no doors. She mentioned employees usually wanted to talk to the middle managers, who “are structurally closer to their employees and so are likely to be more attuned to their subordinates' emotional needs” (Huy, 2002).
One of the cons that Mica said about middle managers is “no time for refinement” because “the middle managers had a lack of time for this activity due to their coordination/management roles” (Balogun, 2003). From Sethi’s research, to perform the role successfully, the middle managers need to develop or enhance the following critical competencies: Self-awareness and 360-degree awareness; Relationship skills/emotional competence; Advanced communication, coaching & influencing skills; Strategic and creative mindset; Career management skills; Continuous learning; Self-esteem. If middle managers invest in themselves to build those competencies, they will not only help their organizations thrive, but will also develop their own careers (1999).
In summary, this guess lecture was very interesting with valuable shared information / personal experience from the presenter, a successful middle manager. I would say “middle manager” is a strategic asset to any organizations because it serves “as a bridge between the visionary ideals of the top and the often chaotic reality of those on the front line of business." (Nonaka & Takeuchi, 1995)
References
Balogun, J. (2003) From Blaming the Middle to Harnessing its Potential: Creating Change Intermediaries, British Journal of Management, vol. 14, 69-83.
Balogun, J. & Johnson, G. (2004) “Organizational Restructuring and Middle Manager Sensemaking”. Academy of Management Journal. Vol 47, 523-549.
Huy, N. Q. (2002) Emotional Balancing of Organizational Continuity and Radical Change, Administrative Science Quarterly, 47(1), 31-69.
Kamm, M.W. (2008). Guest Lecture November 24th, Middle Management - Real Life, Retrieved 2008-11-27 from Jönköping International Business School’s website
Nonaka, I & Takeuchi, H. (1995). The Knowledge-creating Company: How Japanese Companies Create the Dynamics of Innovation", Oxford University Press
Sethi, D. (1999). Leading from the middle. Human Resource Planning. 22(3) , p. 9-10.
Stewart, R. (1988). Managers and their Jobs (2nd Edition). London: MacMillan Press.
Westley, F. T. (1990) Middle Managers and Strategy: Micro-Dynamics of Inclusion, Strategic Management Journal, Vol. 11 (5), 337-351.
Thursday 4 December 2008
2008 Innovation Lecture by Tristram Carfrae
While searching information for a blog post, I found a really interesting lecture "The Art & Practice of Engineering in a Digital World" presented by Tristram Carfrae in "Warren Centre 2008 Innovation Lecture" session which was held in Australia in June, 2008. Tristram Carfrae received Innovation Heroes Award 2008 for outstanding Australian innovations in engineering technology.
Tristram Carfrae, a structural engineer and Principal at Arup Australasia, is known for challenging established ways and exploring better solutions, and for the design of award winning buildings. He is regarded internationally as a leading designer of sporting stadia and lightweight long-span structures.Tristram is behind the design of The Water Cube - Beijing’s National Aquatics Centre for the 2008 Olympics. He also boasts an impressive portfolio of facilities created for the 2000 Sydney Olympics, including the RAS Exhibition Halls, the Dunc Gray Velodrome and the Olympic Tennis Centre. In 2001 Mr Carfrae was recognised as Australian Professional Engineer of the Year by the Institution of Engineers Australia. Carfrae is also an adjunct professor in the School of Built Environment at the University of New South Wales, Australia.
2008 Innovation Lecture
"The Art & Practice of Engineering in a Digital World"
http://www.warren.usyd.edu.au/il_intro.html
Enjoy!
Tristram Carfrae, a structural engineer and Principal at Arup Australasia, is known for challenging established ways and exploring better solutions, and for the design of award winning buildings. He is regarded internationally as a leading designer of sporting stadia and lightweight long-span structures.Tristram is behind the design of The Water Cube - Beijing’s National Aquatics Centre for the 2008 Olympics. He also boasts an impressive portfolio of facilities created for the 2000 Sydney Olympics, including the RAS Exhibition Halls, the Dunc Gray Velodrome and the Olympic Tennis Centre. In 2001 Mr Carfrae was recognised as Australian Professional Engineer of the Year by the Institution of Engineers Australia. Carfrae is also an adjunct professor in the School of Built Environment at the University of New South Wales, Australia.
2008 Innovation Lecture
"The Art & Practice of Engineering in a Digital World"
http://www.warren.usyd.edu.au/il_intro.html
Enjoy!
LUSH - Driving forces & Why?
Lush Fresh Handmade Comestics, a UK-based producer and marketer of ethical beauty products with around 500 stores worldwide, had effectively differentiated itself from its competitors through its strong ethical stance, products and packaging, and the way in which it conducted its business (Purkayastha, 2008). We are going to discuss about the internal and external sources of innovation for Lush, based on the Innovation case seminar several weeks ago.
Constantine sold all his rights on C&W products to Body Shop for £6 million and invested the money in Cosmetics to Go, a mail order catalogue of beauty products (CTG). However, CTG was not as successful as expected. He went bankrupt with a large debt. Constantine and his team then set up a new venture called Cosmetic House with £14,000. With a small amount of money, they improvised with irregular tools in Constantine’s kitchen to produce cosmetics. The first natural handmade products of Cosmetic House came into view in a creative way. The unexpected CTG failure was an important source of the innovative production – improvised cosmetics.
Constantine, with a strong ethical standpoint with long-standing commitment to eco-friendly natural products, anti-animal testing, and fair and ethical trade, has been the main driver of innovation at Lush. He successfully drove the message downwards to his staff, committed employees who share their founders’ passion for the values promoted by Lush brand. A superior leadership strategy motivates people to do more, dream more and learn more. Constantine and his team have the strong desire for growth. They are altogether making the innovation to occur.
One driver of innovation is the customers themselves. According to Gary Hamel – the world's leading expert on business strategy, “Every industry on the planet is being reinvented from the customer backwards. Companies need to bring as much innovation to the demand chain as they brought to the supply chain.” (Kirkpatrick & Hamel, 2004). Lush has implemented the same strategy. The name ‘Lush’ came from a customer in Edinburgh as a result of the company competition to find a name. The customers have been continually involved in Lush product development. Lush’s fanatics, called ‘Lushies’, participate in lively discussions on company’s forum, speak their minds, propose new products, vote on alternatives and suggest names such as "smitten," "whoosh," "aurora" to inspire the cosmeticians to create new products. (Conley, 2005).
Public opinions and customer demands are key drivers. People were becoming aware of the need to protect the environment and increasingly expressing the value they attribute to environmental protection through shopping behavior. They understood the impact of packaging in terms of the environment and their responsibilities to diminish the amount of waste. The ideas of ecological and social responsibility have become more and more important. That was the key factor for Constantine to drive his business with an innovative strategy that met customer and public demands: environmentally friendly packaging.
Competition is one of the external sources for innovation. With strong competition from famous cosmetic brands (Body Shop, Origins – Estée Lauder, Sephona – Louis Vuitton), Lush spent many efforts and resources on innovation initiatives with its own creative team led by Mo, Constantine’s wife. It drove the market by offering innovative products and training the customers how to use them. Lush differentiated itself from its competitors by innovative products, superior customer service, unconventional marketing approach and uncompromising ethical stance.
The regulatory environment also has a strong influence on Lush innovation. Constantine saw “climate changes” as an opportunity and made the necessary innovations ahead of the legislation changes. Before selling C&W to Body Shop, he once got into an argument with Roddick when she decided to replace unbreakable glass containers with plastic containers that could not be recycled. Lush products have minimal packaging or no packaging at all. The “green” packaging is one of the most considerable strategies of Lush. Lush is passionate about the environment and promotes campaigns that encourage environmentally friendly behaviors. In mid July 2007, in a campaign, the brave shop workers educated passers-by on the devastating environmental impact of packaged goods sold in cosmetic shops, supermarkets, and other retailers.
Climate change has generated a huge range of environmental policies and legislation at global and national levels. Packaging Regulations issued in 2003 (Exhibit VII) have supported Lush’s strategy and given it the competitive advantage with existing ‘environmentally friendly’ packaging.
In early days, the high cost of packaging cosmetic products made Lush think of a new resolution. The need was obvious, and the creative team then came up with ”no packaging” or ”minimal packaging” solution. This approach allowed Lush to save money and spend more money on high quality ingredients.
Why innovation? Beckeman, our guest lecturer, stated that one of the main reasons was to create competitive advantage. Michael Porter identified two types of strategies used by companies to obtain competitive advantage: low cost and differentiation (Porter, 1980). Low cost is based on increasing efficiency and cost reduction. In early days, Lush decided on no packaging or minimal packaging because of the high cost of packaging cosmetic products. The money saved could be utilized to put high quality ingredients. Lush was successful in differentiating from its competitors through strong ethical stance, innovative products, “green” packaging and in-store experience. Environment related investments can become sources of competitive advantage (Bonifant, Arnold & Long, 1995). Waddock and Bodwell also mentioned that responsible environmental management can provide a solid basis for competitive advantage, especially for early movers (2004). Lush is very keen on environmental issues by aiming at reducing unnecessary packaging and protecting the environment. Lush does have its competitive advantages over its competitors.
In the next post, I’m going to talk about Lush’s main competitor - The Body Shop: How Anita Roddick started her business and how innovation it was.
References
Beckeman, M. “Innovation within the packaging industry”
Bonifant, B., Arnold M. & Long F. (1995). Gaining competitive advantage through environmental investments. Business Horizons 38/4: 37-47.
Conley, L. (2005). How Lush Cleans Up. Retrieved October 28, 2008 from http://www.fastcompany.com/magazine/96/lush-cosmetics-fasttake.html
Kirkpatrick, D. & Hamel, G (2004, September 6), Innovation Do's and Don'ts, FORTUNE Magazine. Retrieved October 28, 2008 from http://money.cnn.com/magazines/fortune/fortune_archive/2004/09/06/380347/index.htm
Porter, M. (1980). Competitive Strategy: Techniques for analyzing industries and competitors, The Free Press, New York, NY.
Constantine sold all his rights on C&W products to Body Shop for £6 million and invested the money in Cosmetics to Go, a mail order catalogue of beauty products (CTG). However, CTG was not as successful as expected. He went bankrupt with a large debt. Constantine and his team then set up a new venture called Cosmetic House with £14,000. With a small amount of money, they improvised with irregular tools in Constantine’s kitchen to produce cosmetics. The first natural handmade products of Cosmetic House came into view in a creative way. The unexpected CTG failure was an important source of the innovative production – improvised cosmetics.
Constantine, with a strong ethical standpoint with long-standing commitment to eco-friendly natural products, anti-animal testing, and fair and ethical trade, has been the main driver of innovation at Lush. He successfully drove the message downwards to his staff, committed employees who share their founders’ passion for the values promoted by Lush brand. A superior leadership strategy motivates people to do more, dream more and learn more. Constantine and his team have the strong desire for growth. They are altogether making the innovation to occur.
One driver of innovation is the customers themselves. According to Gary Hamel – the world's leading expert on business strategy, “Every industry on the planet is being reinvented from the customer backwards. Companies need to bring as much innovation to the demand chain as they brought to the supply chain.” (Kirkpatrick & Hamel, 2004). Lush has implemented the same strategy. The name ‘Lush’ came from a customer in Edinburgh as a result of the company competition to find a name. The customers have been continually involved in Lush product development. Lush’s fanatics, called ‘Lushies’, participate in lively discussions on company’s forum, speak their minds, propose new products, vote on alternatives and suggest names such as "smitten," "whoosh," "aurora" to inspire the cosmeticians to create new products. (Conley, 2005).
Public opinions and customer demands are key drivers. People were becoming aware of the need to protect the environment and increasingly expressing the value they attribute to environmental protection through shopping behavior. They understood the impact of packaging in terms of the environment and their responsibilities to diminish the amount of waste. The ideas of ecological and social responsibility have become more and more important. That was the key factor for Constantine to drive his business with an innovative strategy that met customer and public demands: environmentally friendly packaging.
Competition is one of the external sources for innovation. With strong competition from famous cosmetic brands (Body Shop, Origins – Estée Lauder, Sephona – Louis Vuitton), Lush spent many efforts and resources on innovation initiatives with its own creative team led by Mo, Constantine’s wife. It drove the market by offering innovative products and training the customers how to use them. Lush differentiated itself from its competitors by innovative products, superior customer service, unconventional marketing approach and uncompromising ethical stance.
The regulatory environment also has a strong influence on Lush innovation. Constantine saw “climate changes” as an opportunity and made the necessary innovations ahead of the legislation changes. Before selling C&W to Body Shop, he once got into an argument with Roddick when she decided to replace unbreakable glass containers with plastic containers that could not be recycled. Lush products have minimal packaging or no packaging at all. The “green” packaging is one of the most considerable strategies of Lush. Lush is passionate about the environment and promotes campaigns that encourage environmentally friendly behaviors. In mid July 2007, in a campaign, the brave shop workers educated passers-by on the devastating environmental impact of packaged goods sold in cosmetic shops, supermarkets, and other retailers.
Climate change has generated a huge range of environmental policies and legislation at global and national levels. Packaging Regulations issued in 2003 (Exhibit VII) have supported Lush’s strategy and given it the competitive advantage with existing ‘environmentally friendly’ packaging.
In early days, the high cost of packaging cosmetic products made Lush think of a new resolution. The need was obvious, and the creative team then came up with ”no packaging” or ”minimal packaging” solution. This approach allowed Lush to save money and spend more money on high quality ingredients.
Why innovation? Beckeman, our guest lecturer, stated that one of the main reasons was to create competitive advantage. Michael Porter identified two types of strategies used by companies to obtain competitive advantage: low cost and differentiation (Porter, 1980). Low cost is based on increasing efficiency and cost reduction. In early days, Lush decided on no packaging or minimal packaging because of the high cost of packaging cosmetic products. The money saved could be utilized to put high quality ingredients. Lush was successful in differentiating from its competitors through strong ethical stance, innovative products, “green” packaging and in-store experience. Environment related investments can become sources of competitive advantage (Bonifant, Arnold & Long, 1995). Waddock and Bodwell also mentioned that responsible environmental management can provide a solid basis for competitive advantage, especially for early movers (2004). Lush is very keen on environmental issues by aiming at reducing unnecessary packaging and protecting the environment. Lush does have its competitive advantages over its competitors.
In the next post, I’m going to talk about Lush’s main competitor - The Body Shop: How Anita Roddick started her business and how innovation it was.
References
Beckeman, M. “Innovation within the packaging industry”
Bonifant, B., Arnold M. & Long F. (1995). Gaining competitive advantage through environmental investments. Business Horizons 38/4: 37-47.
Conley, L. (2005). How Lush Cleans Up. Retrieved October 28, 2008 from http://www.fastcompany.com/magazine/96/lush-cosmetics-fasttake.html
Kirkpatrick, D. & Hamel, G (2004, September 6), Innovation Do's and Don'ts, FORTUNE Magazine. Retrieved October 28, 2008 from http://money.cnn.com/magazines/fortune/fortune_archive/2004/09/06/380347/index.htm
Porter, M. (1980). Competitive Strategy: Techniques for analyzing industries and competitors, The Free Press, New York, NY.
Wednesday 19 November 2008
Ethics – Key to leadership success
Ethics is about good and evil, right and wrong, and of duty and obligation in human conduct; and how we reason and make choices about them (Hicks, R.). Ethical leadership plays a major role in creation of an entrepreneurial team. Northouse (2007) suggested that ethical leadership is founded on respect, service, justice, honesty and community. Ethical leaders treat other people’s decisions, ideas and values with respect; allow other to be themselves with creative desires. The leaders listen to them attentively, empathize with them and are tolerant of opposite opinions. Furthermore, the leaders place people’s benefits ahead of their own, foster others’ visions and integrate all of them to contribute to a common goal. They have a responsibility to attend to others and be a service to them (Northouse, 2007).
It is said about Robbie Hardy, president of Chapel Hill-based IntraSoft and North Carolina’s Entrepreneur of the Year 1997 by Business Leader magazine, that “She knows what people can do best and empowers them to make the most of their talents." Her colleague confirms, "She gets true satisfaction from helping staff and associates reach higher and perform better. She knows what she does best and what she doesn't, and enthusiastically shares responsibility and power." Hardy’s ethical leadership is evidenced by the fact that she set up a superior entrepreneurial team; and the original CI Technologies (CIT) team stayed together for CI Partners (CIP) and has reformulated itself for Intrasoft (Lester, 1998).
With respect, support, trust and encouragement from leaders, subordinates can feel competent about their work and many innovative ideas come into world without fear for failure. Justice and honesty are also important characteristics of leaders. Leaders keep issue of fairness in mind when making decisions. They do not lie nor do they tell the truth in a destructive way.
Respect, support, honesty and justice are extremely substantial in entrepreneurial teams as they are the key ingredients in developing trust and cooperative relationships between leaders and subordinates which are very important to a successful enterprise process.
Beside their own and followers’ objectives, ethical leaders need to take into account the community’s goals. Leaders have to be sensitive to the world in which they operate. They pay attention to how the firm will affect the community, society and environment. What leaders and their subordinates contribute to community may become sources of competitive advantage, one of the vital drivers for innovative team growth and development. Lush Cosmetics is a typical example. Constantine, founder of Lush, has strong ethical stance of anti-animal testing, “green” packaging (minimal / no packaging) which give Lush the competitive advantage, and help to differentiate Lush from its competitors (Purkayastha, 2008).
In conclusion, the best leaders should exhibit their ethics in their leadership style and actions. Ethics is considered as a secret of leadership success.
Let me leave you with words from Guy Kawasaki, a managing director of Garage Technology Ventures, an early-stage venture capital firm and a columnist for Entrepreneur Magazine: “Given a choice, most people would rather work for an ethical company” – under an ethical leadership (Perry, 2004).
References:
Hicks, R. Ethics and Leadership. Retrieved 2008-11-15 from http://level2.cap.gov/documents/Ethics_and_Leadership_Brief.pdf
Lester, M. C. (1998). 1997 Top Gun Enterpreneur of the Year. Business Leader Magazine. Retrieved on October 31, 2008 from http://www.businessleadermagazine.com/Index.aspx?page=ui.article&PID=7707
Perry, D. (2004). Ethics, Leadership and Success. Retrieved 2008-11-15 from
http://www.perrymartel.com/PDFs/Ethics%20Leadership%20and%20Success.pdf
Purkayastha, D. (2008). Sustainable Packaging Practices at Lush Fresh Handmade Cosmetics. ICFAI Center for Management Research.
It is said about Robbie Hardy, president of Chapel Hill-based IntraSoft and North Carolina’s Entrepreneur of the Year 1997 by Business Leader magazine, that “She knows what people can do best and empowers them to make the most of their talents." Her colleague confirms, "She gets true satisfaction from helping staff and associates reach higher and perform better. She knows what she does best and what she doesn't, and enthusiastically shares responsibility and power." Hardy’s ethical leadership is evidenced by the fact that she set up a superior entrepreneurial team; and the original CI Technologies (CIT) team stayed together for CI Partners (CIP) and has reformulated itself for Intrasoft (Lester, 1998).
With respect, support, trust and encouragement from leaders, subordinates can feel competent about their work and many innovative ideas come into world without fear for failure. Justice and honesty are also important characteristics of leaders. Leaders keep issue of fairness in mind when making decisions. They do not lie nor do they tell the truth in a destructive way.
Respect, support, honesty and justice are extremely substantial in entrepreneurial teams as they are the key ingredients in developing trust and cooperative relationships between leaders and subordinates which are very important to a successful enterprise process.
Beside their own and followers’ objectives, ethical leaders need to take into account the community’s goals. Leaders have to be sensitive to the world in which they operate. They pay attention to how the firm will affect the community, society and environment. What leaders and their subordinates contribute to community may become sources of competitive advantage, one of the vital drivers for innovative team growth and development. Lush Cosmetics is a typical example. Constantine, founder of Lush, has strong ethical stance of anti-animal testing, “green” packaging (minimal / no packaging) which give Lush the competitive advantage, and help to differentiate Lush from its competitors (Purkayastha, 2008).
In conclusion, the best leaders should exhibit their ethics in their leadership style and actions. Ethics is considered as a secret of leadership success.
Let me leave you with words from Guy Kawasaki, a managing director of Garage Technology Ventures, an early-stage venture capital firm and a columnist for Entrepreneur Magazine: “Given a choice, most people would rather work for an ethical company” – under an ethical leadership (Perry, 2004).
References:
Hicks, R. Ethics and Leadership. Retrieved 2008-11-15 from http://level2.cap.gov/documents/Ethics_and_Leadership_Brief.pdf
Lester, M. C. (1998). 1997 Top Gun Enterpreneur of the Year. Business Leader Magazine. Retrieved on October 31, 2008 from http://www.businessleadermagazine.com/Index.aspx?page=ui.article&PID=7707
Perry, D. (2004). Ethics, Leadership and Success. Retrieved 2008-11-15 from
http://www.perrymartel.com/PDFs/Ethics%20Leadership%20and%20Success.pdf
Purkayastha, D. (2008). Sustainable Packaging Practices at Lush Fresh Handmade Cosmetics. ICFAI Center for Management Research.
Sunday 9 November 2008
Financial Crisis and Entrepreneurs
Most of the world is experiencing a financial crisis of historic proportions. Without question, the crisis will not be over in the short time and the international consequences will be deep and lasting. We all have been stressed by that economic downturn. And via communication channels, we easily realize that the credit crisis has hit small business owners particularly hard.
How can smal business owners cope with the crisis? They should not panic, and try to focus on the solutions to help their companies get out of the difficult time. Howard Anderson, management professor at Massachusetts Institute of Technology's Sloan School of Management, says the first and only rule is to make sure the company doesn't run out of money (Klein, 2008). Some suggestions from Scott Shane (2008), Professor of Entrepreneurial Studies at Case Western Reserve University are:
1. Extend less credit to your customers: provide less trade credit to customers and reduce accounts receivable.
2. Borrow from different sources (Community banks which did not get involved in the toxic mortgage mess, peer-to-peer borrowing)
3. Bootstrap, or raise equity
4. Cut your costs: leasing instead of buying; look at consultant who has not added enough value but costs much or employee who has not shaped up despite warnings…
Although it is considered as one of the biggest threats to most of the world, the situation could change depending on how we react to this. During such a crisis, actually, opportunity often arises.
“This is a time of great opportunity,” Bill Warner - founder of Avid Technology and Wildfire, one of the most successful entrepreneurs in America - said. “This is not a pep talk. This is reality.” Warner started his best-known company, digital media hotshot Avid Technologies, in September 1987, a month before the stock market crash of that year (Kirsner, 2008).
There is no better time to start a company for a number of reasons. Because highly paying jobs have disappeared and employment opportunities in general have decreased, previously unaffordable talented people are now available to. Operation cost for a business (rent, equipment…) is reduced. New business opportunities may be created and can be captured by startup companies. Therefore, entrepreneurs should stay motivated and not give up dreams. Do not delay starting company until the economy is stronger because someone may beat you in the market (Finn, 2008)
Economic crisis is a part of life and business. Those who react to a crisis passively wilt after the crisis passes, but those who react proactively and assertively to it ultimately succeed.
I’d like to end my post with a quote from Horace, a Roman lyric poet & satirist:
“Adversity has the effect of eliciting talents, which in prosperous circumstances would have lain dormant.”
References:
Finn, M. (2008, October 1). There is opportunity in crisis. Retrieved November 3, 2008 from http://the4eblog.com/home/2008/10/2/there-is-opportunity-in-crisis.html
Kirsner, S. (2008, October 2). My Notes from Today's Innovation Unconference. MassTLC Innovation2008 unConference. Retrieved October 30, 2008 from
http://www.innoeco.com/2008/10/my-notes-from-todays-innovation.html
Klein, K. (2008, October 8). How Small Business Owners Can Cope with the Crisis. BusinessWeek. Retrieved November 1, 2008 from http://www.businessweek.com/smallbiz/content/oct2008/sb20081010_904259.htm
Shane, S. (2008, October 6). What can Entrepreneurs do to Deal with the Credit Crisis? Retrieved October 30, 2008 from http://www.smallbiztrends.com/2008/10/what-can-entrepreneurs-do-to-deal-with-the-credit-crisis.html
How can smal business owners cope with the crisis? They should not panic, and try to focus on the solutions to help their companies get out of the difficult time. Howard Anderson, management professor at Massachusetts Institute of Technology's Sloan School of Management, says the first and only rule is to make sure the company doesn't run out of money (Klein, 2008). Some suggestions from Scott Shane (2008), Professor of Entrepreneurial Studies at Case Western Reserve University are:
1. Extend less credit to your customers: provide less trade credit to customers and reduce accounts receivable.
2. Borrow from different sources (Community banks which did not get involved in the toxic mortgage mess, peer-to-peer borrowing)
3. Bootstrap, or raise equity
4. Cut your costs: leasing instead of buying; look at consultant who has not added enough value but costs much or employee who has not shaped up despite warnings…
Although it is considered as one of the biggest threats to most of the world, the situation could change depending on how we react to this. During such a crisis, actually, opportunity often arises.
“This is a time of great opportunity,” Bill Warner - founder of Avid Technology and Wildfire, one of the most successful entrepreneurs in America - said. “This is not a pep talk. This is reality.” Warner started his best-known company, digital media hotshot Avid Technologies, in September 1987, a month before the stock market crash of that year (Kirsner, 2008).
There is no better time to start a company for a number of reasons. Because highly paying jobs have disappeared and employment opportunities in general have decreased, previously unaffordable talented people are now available to. Operation cost for a business (rent, equipment…) is reduced. New business opportunities may be created and can be captured by startup companies. Therefore, entrepreneurs should stay motivated and not give up dreams. Do not delay starting company until the economy is stronger because someone may beat you in the market (Finn, 2008)
Economic crisis is a part of life and business. Those who react to a crisis passively wilt after the crisis passes, but those who react proactively and assertively to it ultimately succeed.
I’d like to end my post with a quote from Horace, a Roman lyric poet & satirist:
“Adversity has the effect of eliciting talents, which in prosperous circumstances would have lain dormant.”
References:
Finn, M. (2008, October 1). There is opportunity in crisis. Retrieved November 3, 2008 from http://the4eblog.com/home/2008/10/2/there-is-opportunity-in-crisis.html
Kirsner, S. (2008, October 2). My Notes from Today's Innovation Unconference. MassTLC Innovation2008 unConference. Retrieved October 30, 2008 from
http://www.innoeco.com/2008/10/my-notes-from-todays-innovation.html
Klein, K. (2008, October 8). How Small Business Owners Can Cope with the Crisis. BusinessWeek. Retrieved November 1, 2008 from http://www.businessweek.com/smallbiz/content/oct2008/sb20081010_904259.htm
Shane, S. (2008, October 6). What can Entrepreneurs do to Deal with the Credit Crisis? Retrieved October 30, 2008 from http://www.smallbiztrends.com/2008/10/what-can-entrepreneurs-do-to-deal-with-the-credit-crisis.html
Saturday 1 November 2008
Flat Organizational Structure – Think about it...
In the article – “The heart of entrepreneurship” by Howard H. Stevenson and David E. Gumpert (1985), the authors discuss about the best organizational structure for a venture and come up with a reasonable answer and explanation. The management structure should be flat, decentralized with multiple informal networks, to enhance communication and decision making process, and mobilize people.
In 12Manage – The Executive Fast Track website, it is stated: “A flat organizational structure is an organizational structure that features relatively few layers of managers between the top of the corporation and the normal employees".
This structure supports innovation at the unit level, provides more effective communication processes and increased flexibility to deal with rapidly changing environment. The decision making process is quicker because of less approval levels. Employees have more responsibility, independence and authority. It is unnecessary for supervisory management to step in unless the plan is off track and an effective corrective action is needed.
My previous company applied the flat organizational structure with few management levels. Due to equally distributed authority, all employees built up a small society of mutual trust and support. We communicated openly, shared thoughts and learned from each other. With support, trust and encouragement from managers, many creative ideas come into world without fear for failure. We once failed to deliver a software product to client. After serious meetings about that failure, the manager realized that the goals should have been discussed, deliberated and adjusted based on communication and feedback among all related employees.
According to Robbie Hardy, president of Chapel Hill-based IntraSoft and North Carolina’s Entrepreneur of the Year 1997 by Business Leader magazine, building and maintaining a flat organization is one way to keep the best employees. “Keeping the team and founders in touch is really important in creating an atmosphere that's healthy where people feel they can do anything”. “You can't expect your people to read your mind,” Hardy said. ”And you can't expect them to create innovative solutions if you're not fostering creativity.” IntraSoft developed a progressive and creative environment in which employees are challenged to use cutting-edge technology to create a unique and innovative product line (Lester, 1998)
Harold Leavitt, professor emeritus of organizational behavior at Stanford University and author of Top Down: Why Hierarchies Are Here to Stay and How to Manage Them More Effectively, highlights one inevitable fact about flat organizations: ”The more you flatten, the less you control” (Henricks, 2005). Besides, Ingvar Kamprad, founder of IKEA, emphasizes that Time is an Entrepreneur’s Best Asset (LaBarre, 1999). Therefore, I think an entrepreneur should be aware of the advantages of ”Flat Organizational Structure” and consider to apply it for the purpose of Empowering people and Making faster decisions.
References:
12Manage – The Executive Fast Track. Flat Organizational Structure. Retrieved August 31, 2008, from http://www.12manage.com/description_flat_organizational_structure.html
Henricks, M. (2005). Falling flat? How flat is too flat when it comes to management? You'd better find out before it's too late. Entrepreneur. Retrieved October 31, 2008, from http://findarticles.com/p/articles/mi_m0DTI/is_/ai_n8688088
LaBarre, P. (1999). Success Here's the Inside Story. Retrieved October 31, 2008, from http://www.fastcompany.com/magazine/29/bookpage.html?page=0%2C1
Lester, M. C. (1998). 1997 Top Gun Enterpreneur of the Year. Business Leader Magazine. Retrieved on October 31, 2008 from http://www.businessleadermagazine.com/Index.aspx?page=ui.article&PID=7707
Stevenson, H.H. & Gumpert, D.E. (1985), "The heart of entrepreneurship", Harvard Business Review, Vol. 85 No.2, pp.85-94.
(Photo from http://www.thesykesgrp.com)
In 12Manage – The Executive Fast Track website, it is stated: “A flat organizational structure is an organizational structure that features relatively few layers of managers between the top of the corporation and the normal employees".
This structure supports innovation at the unit level, provides more effective communication processes and increased flexibility to deal with rapidly changing environment. The decision making process is quicker because of less approval levels. Employees have more responsibility, independence and authority. It is unnecessary for supervisory management to step in unless the plan is off track and an effective corrective action is needed.
My previous company applied the flat organizational structure with few management levels. Due to equally distributed authority, all employees built up a small society of mutual trust and support. We communicated openly, shared thoughts and learned from each other. With support, trust and encouragement from managers, many creative ideas come into world without fear for failure. We once failed to deliver a software product to client. After serious meetings about that failure, the manager realized that the goals should have been discussed, deliberated and adjusted based on communication and feedback among all related employees.
According to Robbie Hardy, president of Chapel Hill-based IntraSoft and North Carolina’s Entrepreneur of the Year 1997 by Business Leader magazine, building and maintaining a flat organization is one way to keep the best employees. “Keeping the team and founders in touch is really important in creating an atmosphere that's healthy where people feel they can do anything”. “You can't expect your people to read your mind,” Hardy said. ”And you can't expect them to create innovative solutions if you're not fostering creativity.” IntraSoft developed a progressive and creative environment in which employees are challenged to use cutting-edge technology to create a unique and innovative product line (Lester, 1998)Harold Leavitt, professor emeritus of organizational behavior at Stanford University and author of Top Down: Why Hierarchies Are Here to Stay and How to Manage Them More Effectively, highlights one inevitable fact about flat organizations: ”The more you flatten, the less you control” (Henricks, 2005). Besides, Ingvar Kamprad, founder of IKEA, emphasizes that Time is an Entrepreneur’s Best Asset (LaBarre, 1999). Therefore, I think an entrepreneur should be aware of the advantages of ”Flat Organizational Structure” and consider to apply it for the purpose of Empowering people and Making faster decisions.
References:
12Manage – The Executive Fast Track. Flat Organizational Structure. Retrieved August 31, 2008, from http://www.12manage.com/description_flat_organizational_structure.html
Henricks, M. (2005). Falling flat? How flat is too flat when it comes to management? You'd better find out before it's too late. Entrepreneur. Retrieved October 31, 2008, from http://findarticles.com/p/articles/mi_m0DTI/is_/ai_n8688088
LaBarre, P. (1999). Success Here's the Inside Story. Retrieved October 31, 2008, from http://www.fastcompany.com/magazine/29/bookpage.html?page=0%2C1
Lester, M. C. (1998). 1997 Top Gun Enterpreneur of the Year. Business Leader Magazine. Retrieved on October 31, 2008 from http://www.businessleadermagazine.com/Index.aspx?page=ui.article&PID=7707
Stevenson, H.H. & Gumpert, D.E. (1985), "The heart of entrepreneurship", Harvard Business Review, Vol. 85 No.2, pp.85-94.
(Photo from http://www.thesykesgrp.com)
Friday 31 October 2008
US crisis, global crisis and opportunities
Although many observers believed that U.S. recession had begun in the early months of 2008 (Quinn, 2008), US financial crisis was officially triggered by the subprime mortgage collapse on September 7, 2008 and caused shock waves in international markets and a serious influence on economic development. The crisis seems to be a tsunami that hit Europe first then headed for Asia, Latin America and other locations in the world. Global stocks plunged as U.S. crisis spread. Many countries experienced their worst market declines. Dow Jones dropped below 9,000 for first time in five years on October 09, 2008 (Thomasson & Kearns, 2008). In Europe, on October 06, the Paris CAC 40 index finished down 9%, its largest one-day loss ever; London's FTSE 100 dropped 7.85 percent, its largest single-day drop since 1987 (Sullivan & Cody, 2008). The Tokyo stock market suffered its darkest day since 1987 as the Nikkei 225 Stock Average plummeted 11% on October 16, 2008 (Rial & Chua, 2008). Because of steep plunge, some stock exchange markets were even forced to suspend trading, such as Russia’s MICEX exchange, Bucharest Stock Exchange and Indonesia Stock Exchange on October 8, 2008 (Lesova, 2008).
Despite negative effects of the global crisis, there are still opportunities. According to Kishore Mahbubani – the dean of the Lee Kuan Yew School of Public Policy, Singapore's former Ambassador to the United Nations and former President of the United Nations Security Council, the turmoil may turn out to be a source of optimism for Asians. “Actually, the effect of the crisis in the United States could be the opposite. The crisis could in fact lead to a change in the mindset of foreign investors in favor of emerging economies”. Thereby investors would see the benefits of doing more business in Asia.
In his tutoring session for IBC course project, my teacher Sheridan Tatsuno also mentioned that foreign investors will have a tendency to increase the investment in China because of U.S. crisis.
In Latin America - the traditional 'backyard' of the United States, while many others will likely suffer from the crisis, some people are searching for a chance in the gloomy period. Mexican tycoon Carlos Slim, one of the world's richest men, said Latin America's markets can be part of the solution for the northern giant at times of crisis and that they are going to become important for the economy of the United States (Sardon, 2008).
"In the past, developed countries had reserved and financed developing countries, while today developed countries, especially the United States, are being financed with resources from developing countries," Mexican billionaire Slim said. That is why he thinks Latin American and other developing countries could help the U.S. through the crisis (AFP, 2008).
The crisis is seen by James Rooney, chairman and CEO of Market Force Company, as a golden opportunity for Korea to become a force in the global market. He indicated that U.S crisis will cause the slowdown in China's exports to the U.S. and make China to boost its domestic market to offset losses from exports. It will be an advantage for Korean economy (Kim, 2008)
The crisis that swept through the world is not over yet and the international consequences will be deep and lasting. Although the Wall Street crisis is seen as one of the biggest threats to most of the world, the situation could change depending on how we react to this. Entrepreneurs should take advantage of the “bad time” to change the position of their business in national and global economy.
References:
AFP (2008, September 30). Mexican billionaire says China should lead crisis rescue. AFP. Retrieved on October 30, 2008 from http://afp.google.com/article/ALeqM5icguECdnrk259WcIOS_N0phnHkQQ
Kim, J. (2008, October 6). US Crisis Golden Opportunity for Korea. KoreaTimes. Retrieved on October 31, 2008 from http://www.koreatimes.co.kr/www/news/biz/2008/10/123_32224.html
Lesova, P. (2008, October 8). Russian stocks plunge again, trading suspended. MarketWatch. Retrieved on October 30, 2008 from http://www.marketwatch.com/news/story/russian-stocks-plunge-again-trading/story.aspx?guid={648BD3E7-9B66-4E79-9413-16530266BC32}
Quinn, J. (2008, January 7). US recession is already here, warns Merrill. Telegraph. Retrieved October 30, 2008 from
http://www.telegraph.co.uk/finance/economics/2782147/US-recession-is-already-here%2C-warns-Merrill.html
Rial, P. and Chua, K. H. (October 16, 2008). Asian Stocks Tumble on Recession Concerns; Nikkei 225 Plunges. Bloomberg. Retrieved on October 29, 2008 http://www.bloomberg.com/apps/news?pid=20601087&refer=home&sid=aT4Eb5Cdztf0
Sardon, V. (2008, October 3). Latin America sees silver lining in US crisis. TheEarthTimes. Retrieved on October 30, 2008 from http://www.earthtimes.org/articles/show/235200,latin-america-sees-silver-lining-in-us-crisis--feature.html
Sullivan, K. and Cody, E. (2008, October 7). World's Stock Markets Plunge. Washington Post. Retrieved on October 29, 2008 from http://www.washingtonpost.com/wp-dyn/content/article/2008/10/06/AR2008100603167.html
Thomasson, L. and Kearns, J. (2008, October 9). U.S. Stocks Tumble, Sending Dow Below 9,000; GM, Insurers Slide. Bloomberg. Retrieved October 30, 2008 from http://www.bloomberg.com/apps/news?pid=20601087&refer=home&sid=a7Tx3juml8Ys
Thursday 30 October 2008
Growing Pains and Entrepreneurs
To many entrepreneurs, growth is the ultimate success that compensates for their effort and money. It is also a key indicator that goods or services delivered are accepted by the market. Besides, growth simultaneously creates new challenges that the venture has to face. When growth becomes painful, it is a signal of malfunctions in the process of organizational development (Flamholtz, 1990). It is the time when human resources and/or operational structure cannot catch up with the organization’s expansion, and the downfall occurs. At this point, the entrepreneur has three choices: Learn to deal with business growth effectively, sell out, or ignore the problems until the business is forced to close down (Denalli, 1993). The latter two options would most unlikely be selected, the entrepreneur is left with the need to recognize growing pains and manage the growth.
The organizational growing pains mentioned in the article “Growing pains: How to make the transition from an entrepreneurship to a professionally managed firm” (Flamholtz, 1990) are very common and easily experienced by most working people. I would like to introduce an example from my previous experience at an IT company called First Consulting Group (FCG). A web-application project had been estimated to be completed with a team of ten in six months. After three months, it was concluded to need seven more months before the product delivery. Because of underestimation and lack of planning correctly, people were often pushed very hard with heavy workload. Those who worked twelve hours per day began to complain about “overload” and had the feeling that “there is not enough time in the day”. That problem resulted in excessive pressure on employees. To deliver the product on time, the company was forced to hire new people who had to work immediately without adequate training. After the rush, members hired hastily and under pressure would become idle resources. That company spent too much time dealing with short-term crises – “putting out fires”. In late 2007, there was a rumour about the merger of FCG and another company. While senior management had not officially informed, employees experienced a considerable amount of anxiety. They did not understand where the firm was headed and felt insecure about their place in the firm after the merger.
To avoid the problems accompanying rapid growth, organizations must have an infrastructure that will absorb the growth. “Anticipation of bigness” is the term that best describes the effective solution in this case (Hambrick & Crozier, 1985). Those firms must envision themselves as larger; acquire the needed skills and processes before they are actually necessary (Hambrick & Crozier, 1985).
Flamholtz (1990) points out the ten most common organizational growing pains which are only the symptoms of breakdown in the process of organizational development. It is imperative to identify the causes of the malfunction and the solutions, which help entrepreneurs to avoid and deal with growing pains. In highly recommended article “Stumbles and stars in the management of rapid growth”, Hambrick and Crozier (1985) do mention fundamental challenges facing the managers of rapid-growth firms (Instant size, a sense of infallibility, internal turmoil and frenzy, extraordinary resource needs) and how successful firms solve the problems.
Gerber, author of the best-selling The E-Myth: Why Most Businesses Don't Work and What To Do About It (Ballinger Publishing Co.), says: "Business development is crucial, and businesses that don't do it are doomed to fail. High-growth businesses simply fail with a flourish." (Denalli, 1993). A steady rate of growth is necessary to keep everything at a highly stable level. Equipped themselves with theory and reality-based experience, the organizations should stop surviving and start growing with the awareness of the growing pains ahead.
References:
Denalli, J. (1993). Keeping growth under control - managing company growth. Retrieved 2008-10-04 from http://findarticles.com/p/articles/mi_m1154/is_n7_v81/ai_14009418
Flamholtz, E. G. (1990). Growing pains: How to make the transition from an entrepreneurship to a professionally managed firm (pp. 53-72). San Francisco: Jossey-Bass Inc.
Hambrick, D. C., & Crozier, L. M. (1985). Stumblers and stars in the management of rapid growth. Journal of Business Venturing, 1(1), 31-45
The organizational growing pains mentioned in the article “Growing pains: How to make the transition from an entrepreneurship to a professionally managed firm” (Flamholtz, 1990) are very common and easily experienced by most working people. I would like to introduce an example from my previous experience at an IT company called First Consulting Group (FCG). A web-application project had been estimated to be completed with a team of ten in six months. After three months, it was concluded to need seven more months before the product delivery. Because of underestimation and lack of planning correctly, people were often pushed very hard with heavy workload. Those who worked twelve hours per day began to complain about “overload” and had the feeling that “there is not enough time in the day”. That problem resulted in excessive pressure on employees. To deliver the product on time, the company was forced to hire new people who had to work immediately without adequate training. After the rush, members hired hastily and under pressure would become idle resources. That company spent too much time dealing with short-term crises – “putting out fires”. In late 2007, there was a rumour about the merger of FCG and another company. While senior management had not officially informed, employees experienced a considerable amount of anxiety. They did not understand where the firm was headed and felt insecure about their place in the firm after the merger.
To avoid the problems accompanying rapid growth, organizations must have an infrastructure that will absorb the growth. “Anticipation of bigness” is the term that best describes the effective solution in this case (Hambrick & Crozier, 1985). Those firms must envision themselves as larger; acquire the needed skills and processes before they are actually necessary (Hambrick & Crozier, 1985).
Flamholtz (1990) points out the ten most common organizational growing pains which are only the symptoms of breakdown in the process of organizational development. It is imperative to identify the causes of the malfunction and the solutions, which help entrepreneurs to avoid and deal with growing pains. In highly recommended article “Stumbles and stars in the management of rapid growth”, Hambrick and Crozier (1985) do mention fundamental challenges facing the managers of rapid-growth firms (Instant size, a sense of infallibility, internal turmoil and frenzy, extraordinary resource needs) and how successful firms solve the problems.
Gerber, author of the best-selling The E-Myth: Why Most Businesses Don't Work and What To Do About It (Ballinger Publishing Co.), says: "Business development is crucial, and businesses that don't do it are doomed to fail. High-growth businesses simply fail with a flourish." (Denalli, 1993). A steady rate of growth is necessary to keep everything at a highly stable level. Equipped themselves with theory and reality-based experience, the organizations should stop surviving and start growing with the awareness of the growing pains ahead.
References:
Denalli, J. (1993). Keeping growth under control - managing company growth. Retrieved 2008-10-04 from http://findarticles.com/p/articles/mi_m1154/is_n7_v81/ai_14009418
Flamholtz, E. G. (1990). Growing pains: How to make the transition from an entrepreneurship to a professionally managed firm (pp. 53-72). San Francisco: Jossey-Bass Inc.
Hambrick, D. C., & Crozier, L. M. (1985). Stumblers and stars in the management of rapid growth. Journal of Business Venturing, 1(1), 31-45
Tuesday 16 September 2008
How would you staff the company in order to increase its creativity and effectiveness?
What I would do if I were a manager…
To start the recruitment process, we first develop and prioritize the key requirements needed from the positions, such as special qualifications, traits, characteristics and experience; develop the job description; and place a classified ad in newspapers and recruit online, which will create a diverse candidate pool. Then we screen the CVs / applications, hold employment tests and interview candidates. (Heathfield, S.)
Except for outstanding candidates who meet the requirement, we will consider hiring novices and experts in some unrelated areas as well (Sutton, 2001). They can bring benefit to the company because a variety of experience and backgrounds allows them to see and possibly solve problems from a new perspective.
We apply non-hierarchical, flat organizational structure, which is most conducive to creativity and innovation (Kotelnikov, V.). This structure provides more effective communication processes and increased flexibility to deal with rapidly changing environment. The decision making process is quicker because of less approval levels. Employees have more responsibility, independence and authority. Due to equally distributed authority, it will be easy to build up a small society of mutual trust and support. With support, trust and encouragement from managers, many creative ideas come into world without fear for failure.
Leadership style of management team should preferably be participative, democratic and non-authoritarian.
Training courses of Conflict Management and Effective Meeting will be conducted for the team. Beside their specific jobs, employees are encouraged to join those to know how to deal with difficult situations that usually occur in working environment.
The company rewards failure and success; and punishes inaction. (Sutton, 2001) Most people always pass failure on the way to success. Some failure moves the firm closer to success. Inaction is the worst kind of failure - and the only kind that deserves to be punished.
Essential office facilities are set up. Flexible working hour is applied to make people feel comfortable. I myself cannot work well in a firm that force its employees to work 8hrs/day, from 8am to 5pm. Therefore, we had better let people handle their tasks and time.
Finally, “Aloha Friday” party, serving free breakfast and juice, is held on the last Friday of the month. I myself did enjoy many successful Aloha Friday Parties in my previous company. Before starting our working Friday, we have a chance to “recharge” our energy after a week and be ready for the weekend ahead. Those parties improve co-worker relationships and create a superior working environment that facilitates creativity and innovation.
References:
Sutton, R. (2001). The Weird Rules of Creativity. Harvard Business Review, September 2001
Heathfield, S. Hiring Employees: A Checklist for Success in Hiring Employees. Retrieved 2008-09-15, from http://humanresources.about.com/cs/selectionstaffing/a/hiringchecklist.htm
Kotelnikov, V. Flat Organizational Structure: Empowering People and Making Faster Decisions. Retrieved 2008-09-15, from http://www.1000ventures.com/business_guide/organization_flat.html
To start the recruitment process, we first develop and prioritize the key requirements needed from the positions, such as special qualifications, traits, characteristics and experience; develop the job description; and place a classified ad in newspapers and recruit online, which will create a diverse candidate pool. Then we screen the CVs / applications, hold employment tests and interview candidates. (Heathfield, S.)
Except for outstanding candidates who meet the requirement, we will consider hiring novices and experts in some unrelated areas as well (Sutton, 2001). They can bring benefit to the company because a variety of experience and backgrounds allows them to see and possibly solve problems from a new perspective.
We apply non-hierarchical, flat organizational structure, which is most conducive to creativity and innovation (Kotelnikov, V.). This structure provides more effective communication processes and increased flexibility to deal with rapidly changing environment. The decision making process is quicker because of less approval levels. Employees have more responsibility, independence and authority. Due to equally distributed authority, it will be easy to build up a small society of mutual trust and support. With support, trust and encouragement from managers, many creative ideas come into world without fear for failure.
Leadership style of management team should preferably be participative, democratic and non-authoritarian.
Training courses of Conflict Management and Effective Meeting will be conducted for the team. Beside their specific jobs, employees are encouraged to join those to know how to deal with difficult situations that usually occur in working environment.
The company rewards failure and success; and punishes inaction. (Sutton, 2001) Most people always pass failure on the way to success. Some failure moves the firm closer to success. Inaction is the worst kind of failure - and the only kind that deserves to be punished.
Essential office facilities are set up. Flexible working hour is applied to make people feel comfortable. I myself cannot work well in a firm that force its employees to work 8hrs/day, from 8am to 5pm. Therefore, we had better let people handle their tasks and time.
Finally, “Aloha Friday” party, serving free breakfast and juice, is held on the last Friday of the month. I myself did enjoy many successful Aloha Friday Parties in my previous company. Before starting our working Friday, we have a chance to “recharge” our energy after a week and be ready for the weekend ahead. Those parties improve co-worker relationships and create a superior working environment that facilitates creativity and innovation.
References:
Sutton, R. (2001). The Weird Rules of Creativity. Harvard Business Review, September 2001
Heathfield, S. Hiring Employees: A Checklist for Success in Hiring Employees. Retrieved 2008-09-15, from http://humanresources.about.com/cs/selectionstaffing/a/hiringchecklist.htm
Kotelnikov, V. Flat Organizational Structure: Empowering People and Making Faster Decisions. Retrieved 2008-09-15, from http://www.1000ventures.com/business_guide/organization_flat.html
Monday 15 September 2008
The Weird Rules of Creativity by Robert I. Sutton
The article that I am most interested in from creativity module is “The Weird Rules of Creativity” by Robert I. Sutton (2001). After the first surprise about the author’s idea of not applying rational rules of management, I understand his point of view and agree that some approaches will work whereas some may not.
I totally agree with the author that hiring novices and experts in some unrelated area can bring benefit to the company because a variety of experience and backgrounds allows them to see and possibly solve problems from a new perspective. Who will believe a company offering banking solutions recruits one with PhD in Chemistry as a product development manager? My customer - located in Australia - did, and that PhD person has been working effectively with many “weird” and precious suggestions for more than three years.
Starting rewarding failures, not just successes and punishing the inaction only are certainly brilliant ideas to boost the creativity. Most people always pass failure on the way to success. There are more failures than successes. Some failure moves the firm closer to success. Reward for failure facilitates creativity since management support and trust enable people to take risks without fear or undue penalty for failure. Inaction is more dangerous than failure, because inaction causes the firm not only to remain the same, but to fall behind.
What the author says: “taking perfectly happy people and goading them into fights among themselves” is a risky proposal. The manager has to keep in mind that the fights he/she needs to cause are all about ideas. If personality conflicts or relationship issues are provoked, they will destroy the creativity.
Suggestion of hiring slow learners or people who make you uncomfortable, those you do not like is a controversial one. I understand that varied perspectives and ideas will ease the innovation, but we do not need to hire slow learners and those we dislike to make the variation. In my opinion, the supporting argument for this idea is not convincing. Slow learners, who will take long time to learn and be trained, will have bad influence to the co-workers and the firm.
In conclusion, this article, which cancels most of managerial conventions, is one of the most fascinating and shocking that I have ever read. Since creativity is unofficially considered to play a significant role in the initial attractiveness and sustained competitiveness of many firms, people should think how they can apply Sutton’s suggestions to their company to enhance the creativity. Do not accept them as a whole without extremely cautious examination because real world is not as simplistic as theory. The combination of conventional methods of management and “weird” rules may be the best.
References:
Sutton, R. (2001). The Weird Rules of Creativity. Harvard Business Review, September 2001
I totally agree with the author that hiring novices and experts in some unrelated area can bring benefit to the company because a variety of experience and backgrounds allows them to see and possibly solve problems from a new perspective. Who will believe a company offering banking solutions recruits one with PhD in Chemistry as a product development manager? My customer - located in Australia - did, and that PhD person has been working effectively with many “weird” and precious suggestions for more than three years.
Starting rewarding failures, not just successes and punishing the inaction only are certainly brilliant ideas to boost the creativity. Most people always pass failure on the way to success. There are more failures than successes. Some failure moves the firm closer to success. Reward for failure facilitates creativity since management support and trust enable people to take risks without fear or undue penalty for failure. Inaction is more dangerous than failure, because inaction causes the firm not only to remain the same, but to fall behind.
What the author says: “taking perfectly happy people and goading them into fights among themselves” is a risky proposal. The manager has to keep in mind that the fights he/she needs to cause are all about ideas. If personality conflicts or relationship issues are provoked, they will destroy the creativity.
Suggestion of hiring slow learners or people who make you uncomfortable, those you do not like is a controversial one. I understand that varied perspectives and ideas will ease the innovation, but we do not need to hire slow learners and those we dislike to make the variation. In my opinion, the supporting argument for this idea is not convincing. Slow learners, who will take long time to learn and be trained, will have bad influence to the co-workers and the firm.
In conclusion, this article, which cancels most of managerial conventions, is one of the most fascinating and shocking that I have ever read. Since creativity is unofficially considered to play a significant role in the initial attractiveness and sustained competitiveness of many firms, people should think how they can apply Sutton’s suggestions to their company to enhance the creativity. Do not accept them as a whole without extremely cautious examination because real world is not as simplistic as theory. The combination of conventional methods of management and “weird” rules may be the best.
References:
Sutton, R. (2001). The Weird Rules of Creativity. Harvard Business Review, September 2001
What a Star – What a Jerk by Sarah Cliffe
This article involves an interesting dilemma, illustrated by a short real-life story about Jane - a manager and Andy - a top performer and a jerk. I agree with all constructive advices that four commentators offer in Jane’s situation.
Andys exist everywhere. Jane is facing a typical situation: a top-performing salesperson that is nasty and bullying to everyone around. She cannot get rid of him, but she cannot let him destroy the team either.
I agree with Chuck McKenzie that the manager needs to carve out a role that lets him focus on what he is good at. She should give him the permission to work alone as much as possible. Chuck McKenzie also states that if Jane and her group can learn how to face with true diversity, they will be a stronger and more creative group.
This Andy was certainly not going to change his attitude after a short talk with Jane. Jane must make him understand that productivity is not good enough and that his job depends on his professional relationship with co-workers. Andy is required to realize team result is as important as individual result, and rudeness does not help improve performance in this company. Psychologist and consultant James Waldroop even proposes strict methods that stroke this extremely narcissistic man’s ego and at the same time hammer him hard with critique; offer him two options (staying or leaving). Before executing those methods, Jane must have backup plans if Andy chooses to leave.
Jane’s main problem is not the jerk called Andy, but herself. She is far too passive and could not take control of the whole situation. Jane has to define each person's responsibilities and help team members understand her expectation for each member. She should stop sending email to Rick Lazarus because Rick – an old colleague – cannot give her good advices and may reinforce her managerial blind spots.
I strongly agree that Jane needs to conduct some training courses for the team, such as Conflict Management, Assertiveness Development and Effective Meeting. The team will then perhaps know how to deal with Andy’s negative attitude and behavior.
“What a Star - What a Jerk” is a worth reading article that reveals an interesting issue that challenges most managers nowadays. Jane, the manager in this story, needs to enhance her leadership skills and management skills. After the final warning, if Andy does not improve himself, Jane has to fire him and find a substitution, like what James Waldroop mentioned in his advice "I don't care how much money somebody could make us, or how smart they are; it's not worth it if they disrupt the entire group”
References:
Cliffe, S. (2001). What a Star – What a Jerk. Harvard Business Review, September 2001
Andys exist everywhere. Jane is facing a typical situation: a top-performing salesperson that is nasty and bullying to everyone around. She cannot get rid of him, but she cannot let him destroy the team either.
I agree with Chuck McKenzie that the manager needs to carve out a role that lets him focus on what he is good at. She should give him the permission to work alone as much as possible. Chuck McKenzie also states that if Jane and her group can learn how to face with true diversity, they will be a stronger and more creative group.
This Andy was certainly not going to change his attitude after a short talk with Jane. Jane must make him understand that productivity is not good enough and that his job depends on his professional relationship with co-workers. Andy is required to realize team result is as important as individual result, and rudeness does not help improve performance in this company. Psychologist and consultant James Waldroop even proposes strict methods that stroke this extremely narcissistic man’s ego and at the same time hammer him hard with critique; offer him two options (staying or leaving). Before executing those methods, Jane must have backup plans if Andy chooses to leave.
Jane’s main problem is not the jerk called Andy, but herself. She is far too passive and could not take control of the whole situation. Jane has to define each person's responsibilities and help team members understand her expectation for each member. She should stop sending email to Rick Lazarus because Rick – an old colleague – cannot give her good advices and may reinforce her managerial blind spots.
I strongly agree that Jane needs to conduct some training courses for the team, such as Conflict Management, Assertiveness Development and Effective Meeting. The team will then perhaps know how to deal with Andy’s negative attitude and behavior.
“What a Star - What a Jerk” is a worth reading article that reveals an interesting issue that challenges most managers nowadays. Jane, the manager in this story, needs to enhance her leadership skills and management skills. After the final warning, if Andy does not improve himself, Jane has to fire him and find a substitution, like what James Waldroop mentioned in his advice "I don't care how much money somebody could make us, or how smart they are; it's not worth it if they disrupt the entire group”
References:
Cliffe, S. (2001). What a Star – What a Jerk. Harvard Business Review, September 2001
Friday 29 August 2008
Entrepreneur, who are you?
You earned money early and were very careful about your earnings.
You, a leader, always look for opportunities around to make the differences. You take risk in starting a business, managing it in an effective way and accept full responsibility for the outcome. You are very busy and have no time for family or leisure activities.
Entrepreneurs, possibly considered as innovators, have strong capabilities in leadership, management and team-building (Scholar Robert. B. Reich)
So, what is Entrepreneurship?
The short and easy-to-remember definition I got from the very first lecture at JIBS:
Entrepreneurship = Innovation + Business Creation
You, a leader, always look for opportunities around to make the differences. You take risk in starting a business, managing it in an effective way and accept full responsibility for the outcome. You are very busy and have no time for family or leisure activities.
Entrepreneurs, possibly considered as innovators, have strong capabilities in leadership, management and team-building (Scholar Robert. B. Reich)
So, what is Entrepreneurship?
The short and easy-to-remember definition I got from the very first lecture at JIBS:
Entrepreneurship = Innovation + Business Creation
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