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 And even experienced staffs can also be out of date on the industry sector they work for if they do not learn things themselves continuously and/or get training on specific areas frequently.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.
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