Creating New Wealth Through Organizational Design
August 17, 2008
The chief problem that companies face today is that they are using 20th century strategies to compete in the 21st century. Strategic models for the 20th century made the assumptions that capital was scarce, interaction costs were high and that vertically integrated structures were the key to efficient operation. Fast forward to the 21st century and the companies that are thriving are tapping into employees’ knowledge, relationships and hidden talents. They are using new performance metrics measuring profit per employee, rather than returns on capital. The reason for this is that in the 21st century, capital is not scarce, but talent is. The time has come for executives to develop the organization as a strategic need that will allow companies to compete no matter what the market situation. Read more… »
Understanding Mental Models
August 5, 2008
“We are prisoners of our own islands of thought until some foreign intruders come to our shores. Then we realize the wonder and perils of interacting with this “brave new world” outside the scope of our former mental models.”
Shakespeare’s “The Tempest”
Why do some people seem to handle conflict and form relationships with ease? Were they just born that way? Read more… »
Run To The Revenue - Part II
July 26, 2008
In our first segment, we discussed some of the key factors associated with the economic growth of Asia. We spoke in depth about the top 25 global company trends over the past 10 years, the top 50 competitive nations, and how Foreign Direct Investment (FDI) has influenced the in/out flows of money. As companies from Asia continue to penetrate the U.S. markets, so too must North American enterprises penetrate Asia. The opportunities are vast, but the task of executing a successful strategy can be even more daunting. Strategies developed by most U.S. companies, either small or large, don’t work well in Asia for two main reasons. Read more… »
The Learning Organization
June 26, 2008
“Knowledge is Power”
Sir Francis Bacon
It has become evident that The United States is becoming a knowledge-based economy. However, like most “buzz” words, most people say it and few actually know how to make it a reality. In order to develop a learning organization, there are 5 disciplines which need to be at the core. The reality is that most people have the ability to learn, but many are stunted by environments that don’t encourage reflection and engagement. Read more… »
Business Lessons From Aristotle
May 21, 2008
I have gained this by philosophy;
That I do without being commanded what others do only from fear of the law.
Aristotle
When searching for inspiration on delivery of strategies and techniques, why not start with the original masters of thought. To this day we still use the Socratic method to test a theory. Plato’s “Republic” is introduced to budding students between the ages of 16-19 on a regular basis and used as a concrete example of how to manage a state or organization. Read more… »
Get Globally Calibrated
April 23, 2008
“All mankind is divided into three classes: those who are immovable, those who are movable, and those who move.”
Benjamin Franklin
This is an interesting time in American History. It’s a time when the masses are fueled with a fear/anger over jobs being sent overseas, mixed opinions over the role of the military and political parties displaying the type of in-fighting that is associated with 3rd world countries. However, through all of this turmoil, the strategic-minded are walking around with gigantic smiles on their faces. Read more… »
“ABE” The 21st Century Global Salesperson
March 15, 2008
There are best practices in sales that span geographies, cultures and time periods. Many of these are summed up by ABE, Attitudes, Behaviors and Execution.
Unfortunately, when a salesperson has been selling at one company, in one industry or in one geographic area their whole career, they develop provincial habits that don’t transfer well. For example, a joke about “The Sopranos” during a sales call may work in certain regions of America, but would be misunderstood or considered completely inappropriate by 99% of the world. Read more… »
10 Power Tips For Global Execs
February 1, 2008
In a globalized world, best practices are sometimes overshadowed by expedient policies. This trend attenuates organizations at the core and leads to sky-high attrition rates and substandard performance.
However, at the foundation of laudable organizations regardless of age, culture or revenues, best practices are endemic. With the economies in Asia burgeoning, some executives find it hard to instill the elementary, yet crucial, practices that are the building blocks for long-term success. Read more… »
How Global is Your Organization?
December 12, 2007
Here’s a useful way to assess the global strengths and weaknesses of your organization. First, print out this page. Then, for each of the following statements, assign a score of "1", "2", or "3" according to how well they describe your company: 1 if a statement is false, 2 if it’s somewhat correct, or 3 if it’s true.
- In order to create an overall corporate “glue,” our organization devotes a large share of its resources to global executive development
- Global experience (actually living and working overseas) is considered essential to a successful career in our organization
- A considerable number of our employees live outside the home country
- A sizable percentage of our investments lie outside the home country
- The power of our subsidiaries is considerable
- Non-home-country executives are well represented on the board
- Our language of business is predominantly English
- The members of the executive board have extensive overseas experience
- The organization is very experienced at handling expatriation/repatriation issues and offers executives considerable help with transitions
- We invest in preparing our executives for foreign assignments
- In considering people for assignments in countries other than their own, we look at many factors other than technical/functional expertise
- We lose very few of our executives due to unsuccessful foreign assignments
- Our organization doesn’t favor home-country nationals for fast-track careers
The higher your score, the more your organization tends to be global. Please feel free to share your scores and questions with International Innovations.
Specific scores are privileged information. However, if you find your score below 25, it is reason for concern if your organization is global. In the case where you’re planning on going global, these areas are paramount in the process.
For more information, see our other articles about organizational development.
Developing The 21st Century Executive
November 22, 2007
Mediocrity knows nothing higher than itself, but talent instantly recognizes genius.
Sir Arthur Conan Doyle (Sherlock Holmes)
It is no great secret that the globalized corporate world is engaged in a war for talent. Nearly all companies go through the time consuming process of deciding whether to focus on homegrown talent or acquire talent from the market.
As a best practice, a 70/30 blend of homegrown v. free agents is recommended. This is true when the organization invests in their homegrown talent from the inception, and this is why it is essential to infuse systems of leadership and communication into the everyday working culture of the people in the organization.
In many large firms, there are tremendous knowledge gaps from office to office. Bringing in high-flying talent from the market is essential, but doing so can attenuate an organization with a sub-standard corporate culture if that individual doesn’t mesh well with the team. Read more… »