How to Bounce Your Business Off the Bottom

Businesses can decline over the years until they no longer have enough working capital to maintain their current course of action. Without drastic change, the business will either be sold or liquidated in bankruptcy court. Change requires a new way of thinking about things, taking risks and making better strategic choices that lead to higher outcomes.

Organizations operate on processes & procedures. The culture of an organization will determine its overall communication and work patterns. When processes & procedures and culture are aligned to market needs it becomes more likely that the business will be able to pull out of its current predicament.

Consider a company that produces a single product that once brought in a lot of money but over the years alternative products have been developed by competitors that are eating away at a shrinking market. Continuing to do the same thing over and over without adjusting course is likely to end in a complete disaster.

Companies usually wait too long to make changes like many of us wait too long to adjust a bad habit. It is a human problem that we avoid change until it is necessary. By being proactive and watching for trends and opportunities it is possible to make smaller and easier to handle changes to keep a company focused on market relevancy.

If your company’s market is dwindling, competition is increasing, and your adjustment capital is dwindling consider a few helpful hints in developing a more sustainable business. Bounce your business off the bottom by answering a few questions…

1. Are you in the right market? Take a hard look at your capacities and market need to ensure your business is still relevant.

2. Are your processes & procedures focused on outcomes? Adjusting processes & procedures can create better outcomes, at lower cost, and more efficiency.

3. Do you have the right people? Ensure you have the right intellectual and skilled capital to transform your company.

4. Are there new markets? It is a global world out there. Companies can open up new markets and reach more customers.

5. Are you giving your customers what they want? Make sure that your business is focused on what the customers need and want.

6. Can you find more value? Take a look at your products/services and see if you can enhance their value.

7. Should you diversify? There are times when it is necessary to add new products and services to ensure that you are not overcapitalized into a single risk.

8. Should you Collaborate? Your product/service might match well with another product/service from another company that can raise the value of both.

Online Learning Has Earned its Permanent Place in Higher Education

Online learning is now a permanent part of higher education and will continue to expand its market. The ease and convenience of online education is changing the face of colleges across the country. As a modality of learning, it allows students to connect to their class and professor at times that are more convenient for them.

Traditional education is face-to-face and requires the student to be present in order learn. This leaves out many people who balance families and careers. Besides, those who live in rural areas, or out of a university’s geographical area, will be cut off from higher education.

A selection process not based on actual skill or ability is bad news for the economy. Employers require highly skilled employees who continually update their knowledge to stay competitive with the market. Those who are most likely to capitalize on higher education are left out of the mix.

Online education will likely continue to grow and become a standard, possibly superseding tradition modalities, as a delivery channel for teaching and learning. Professors and students are becoming familiar with online education and are likely to adopt more of it in the future, (Mbuva, 2014).

There is also an additional cost benefit. State budgets are getting squeezed and colleges are running in the red. Online education may continue to become a popular method of reducing campus costs and lowering overall operating costs.

Universities will continue to look toward for-profit, online models, to cut costs; even if they continue to lobby against competitive higher education ideologies. They don’t really have much of a choice. Most avenues of increasing wealth have dried up and cutting heavily will lower the quality of programs.

Virtual classrooms lower costs and expand a university's customer base. Land based colleges will maintain their prestige but will need to augment with hybrid, and/or fully online programs. They will seek to expand their offerings to support a growing need for higher education.

Online education is here to stay and it will continue to be adopted by institutions. It reduces costs and fits the needs of students. Professors and students are becoming accustomed to the online process and will seek its convenience in selecting future programs. As market factors adjust, online education may find itself a hot commodity.

Mbuva, J. (2014). Online education: progress and prospects.   Journal of Business & Educational Leadership, 5 (1).

The Nature of Values and Authority-Beyond Metrics

Authority is accompanied  with power, and this can be an irresistible aphrodisiac. It is so intoxicating that people continually seek to gain higher levels of authority through wealth, social position, and power accumulation. Positions of power should come with responsibility, and those who do not have the right kind of values should not be entrusted to direct others. People in power positions set the standards for others and can have an enormous impact on acceptable behaviors among their charges.

A study focusing on disengagement theory found that managers who pushed others to engage in misreporting had a direct impact on the moral performance of their subordinates (Mayhew & Murphy, 2014). Supervisor requests were met with willing subordinates who misreported more, rationalized their unethical behavior and didn't feel that bad about it.

Immoral bosses changed the perspective of their subordinates to the point where they no longer could have any remorse. As unethical behavior becomes embedded into the organizational culture, it creates expectations. For those who “play by the rules,” it can seem like an unfair disadvantage.

Performance metrics becomes to define the individual. Companies that do not concern themselves with how these metrics were achieved will find themselves engage in more immoral activities. Whether the metric is associated with sales or production, the result should include an expectation of ethical behavior in its achievement.

All organizations, whether public or private, should seek to recruit and develop authority figures with moral sentiments. When tough decisions need to be made it is those with an internal moral compass who can make the right choices while those who are self-seeking and need external gratification will be more likely to support unethical behavior. The values of the authority figure will soon spread to their subordinates and create a new way competing.

Mayhew, B. & Murphy, P. (2014). The impact of authority on reporting behavior, rationalization and affect. Contemporary Accounting Research, 31 (2).

The Necessity of Change-Using Kotter’s Change Model

Organizations that fail to change, eventually fail to exist. Threats to longevity can come from any source that ranges from market preferences to enacted legislation. Organizations must continue to adapt to changes and threats to be fruitful and thwart failure. Kotter’s Transformational Change Model helps formulate how change occurs and ensure that the change becomes embedded.

Kotter’s Change Model has eight different stages that move the company through the process of change and into the solidification of change. The steps required to avoid stagnation include increasing urgency, building guiding teams, developing a vision, communicating, enabling action, develop short-term wins, continue pressure/urgency, and making the changes stay (Tanguay, Waltman& Defebaugh, 2011).

The model seems to create a buzz in the workplace, sets social standards, creates small steps to enact and solidify the change. Staying power requires adjusting the metrics and performance needs of the organization. Much of this includes modifying how employees are promoted and awarded to ensure that change takes effect.

Change comes down to two fundamental ideas of process and expectation. Changing processes leads to new expectations and expectations support the use of processes. People must accept the new methods and then adapt them as the most beneficial. Resistance occurs when processes are rejected, and companies slip back into previuos ways of doing things.

All entities and organizations must change and adapt or they will soon find themselves irrelevant. The processes of development requires challenge and successfully overcoming that challenge. Using models such as Kotter’s helps decision-makers understand how change happens which can lead them to promote more efficient change with the least amount of turmoil. All change will require some frustration and adjustment

Tanguay, D., Waltman, J. & Defebaugh, S.  (2011). An ethics program assessment: a case study of Kotter’s Transformational Change Model. Ethics & Critical Thinking Journal, 2.

Science Starts with a Question, Not a Conclusion

Science is the perpetual pursuit of truth. It explores, identifies, investigates and forms models to predict future events. Models are applied to new instances and are tested against their natural environment to ensure that they are valid under similar situations. Science rests on asking questions. If science starts with a conclusion, the entire process of investigation becomes invalid.

A person who jumps quickly to a conclusion without appropriate fact finding often does so based on their personal and subjective perspective. The conclusion is more about the investigator’s personality and goals than it is about truth. The researcher projects their bias into the study and skews the results; the entire report becomes invalidated.

Starting with a question ensures that all possible outcomes are considered as an explanation. The researcher should not selectively accept and reject relevant information without ensuring they are outside the scope of the study. An accurate picture is created when all of the competing information is included in the study and used to draw logical conclusions.

The process of investigation is so important that we have developed a scientific method of balances and controls. The discovery process rigidly defines how to investigate a problem to help limit investigator bias that inadvertently seeps into the study. Ensuring scientific exploration follows appropriately methodology leads to higher relevance, validity and internal consistency of the study.

I have seen researchers push for a conclusion before designing the study. Even though they may not be aware of it, the investigator designs the entire study to justify their point.  They were not able to see the obvious and more parsimonious answers in front of them because they were perceptual blind to alternative explanations.

Whether one is conducting academic research, investigating a corporate problem, is a law enforcement investigator, or trying to replicate previous studies it is important to start with a question and not an answer. A question creates a better reflection of truth by logically moving to an unknown conclusion.

Training researchers to approach complex problems with the right mindset helps in generating better results that can be applied to predict future events. As the models change, develop, and adjust they become more accurate with each repetitive investigation. Only through openness of thought and exactness of measurement will new discoveries lead to higher performance. Each investigator should seek truth above confirmation of self-beliefs and bias.

Do you have a question or an answer? “By doubting we are led to question, by questioning we arrive at the truth.” Peter Abelard (French Philosopher)

The Advantages of English as an International Language

English is the language of business and offers unique advantages for international commerce and business education. As a communication medium, the ability to share ideas and conduct transactions across multiple continents helps speed up trade and idea sharing that often leads to wealth generation. The building of international relevance in the business world is fostered by connecting people and their ideas.

Consider the purpose of communication and its impact on the transference of information. When two people share similarities of a language, they need fewer feedback loops to understanding the conversation. Using the same language lowers the time it takes to propose and clarify propositions within daily interactions. This process of knowledge sharing speeds up exponentially and can increase the profitability that people will enhance knowledge.

American companies have an advantage because of the commonality English as a business language (Cavaliere, Glasscock, & Sen, 2014). The more English is used around the world, and the more likely the U.S will be advantaged from present and future business contracts. International commerce becomes more plausible when two companies can communicate and integrate easily. A similarity of language can create similarity of thought and purpose.

Language is embedded with codes, symbols, patterns of thinking and values. When a particular language is spoken in different cultures and locations, the people’s culture will begin to align with the values of that language. The more the people speak a particular language, the more they are going to find similarities with others who speak that language.

In the education arena, opportunities for employment in English speaking companies support English education.  English as a business language ensures that the majority of the great ideas and opportunities are supported by using the mental framework set out by the semantic structure of the language itself. Language changes the way we think and understand problems.

Using English as an international business language also helps in educating and employing individuals with American businesses. Graduating students will associate opportunity and education with English speaking companies. The eventual result is the attraction of talent to an opportunity like a magnet is attracted to metal objects.

The way we think is related to the way we talk and use words. Speaking in a particular language activates various centers in our brains and becomes part of our memories and thought processes. Using English as a business language helps people to understand the same perspectives and values that made America an economic powerhouse. Ease of communication speeds up the transference of knowledge, ideas and collaboration with other entities and countries. The commonality of language can encourage higher business theory development and marketing effectiveness.

Cavaliere, F., Glasscock, K. & Sen, K. (2014). The englishization of business: does this help or hinder teaching global business? Education, 135 (2). 

Emergent Transformational Leadership-Battlefield to Business

Leadership is such a critical aspect of team success that without it they will ultimately fail. Companies spend millions a year selecting, grooming and developing leaders. Organizations that seek to transform their operations should keep an eye out for transformational leadership that can adjust and change to new environments. Whether one is seeking a business executive or the next military officer understanding emergent transformational leadership as it works in live situations is beneficial for recruitment.

Groups, regardless of type, will eventually form a command structure. It is one of the most natural occurrences in both civilized and uncivilized society. The kind of leadership, poor or high, will determine the values of the group and how well it performs under pressure. Whether discussing business or the military, ensuring the right type of leaders makes their way forward helps in developing high functioning teams.

Research into military teams highlights how transformational grassroots military leadership emerges from within the ranks when times are tough. Traits of emergent transformational leadership includes: visionary, leads by example, empowering others, sincerity of purpose, moral value system, genuine car for others, compassion, self-sacrificing, and self-efficacy (Bangari & Singh, 2014).

The confident but compassionate leader runs contrary to cultural fallacies that believe effective leadership is a domination game only. Transformational leaders create followers where power oriented leaders rely too heavily on formal position or fear that limits loyalty. Having the “golden touch” with others will still being driven toward goals seems to make a significant difference in outcomes.

Selecting and fostering leadership in business and military occupations is important because they can inspire followers to raise their performance to accomplish objectives above and beyond themselves. Ensuring that the people with the right characteristics are brought forward and develop a sense of responsibility for others helps in solidifying social bonds and promotes loyalty.

Bangari, R. & Sngh, V. (2014). Establishing a framework of transformational grassroots military leadership: lessons from high-intensity, high-risk operational environments. The Journal for Decision Makers, 39 (3).

Considering Culture in Your Strategic Road Map

A strategy is a roadmap that guides organizations to higher levels of performance that encourages productive growth. Executives can develop excellent business strategies that take into consideration market projection, resource allocation, human capital, and financial streams. To their own detriment, many CEOs do not factor in organizational culture into their strategies and how it impacts organizational goal attainment.

Culture should support business strategy (Eaton & Kilby, 2015). The values and semantics contained within culture should enhance business strategy through proper orientation of people's expectations. If there are contrary elements within a culture, the values should be adjusted to ensure they realign to meet organizational needs.

Consider an example of how culture can support or detract from organizational objectives. Two companies seek to become market leaders, but one company promotes employees based on patronage and the other from performance. These values become embedded into the culture of the organization and create a way of thinking that impacts daily operations.

Over time, poor values will cost the company their productivity and put them into market irrelevance and bankruptcy. Companies thrive off of their intellectual capital and when this is traded for patronage and personal gain the innovative and productive spirit dissipates.

Building a strong culture supports the achievement of organizational objectives by creating a way of thinking. An organization based in service quality should consider a culture that has focused values. Likewise, a company that relies on lean manufacturing promote efficiency.

Culture is a collective pattern of thinking that leads to action. As a whole organization, the actions of individual workers will determine whether or not a company will be successful. Developing the right culture will create social pressure to recruit, promote and perform at certain standards that helps the organization become stronger. A comprehensive strategy must include the soft cultural skills that support goal attainment.

Eaton, D & Kilby G. (2015). Does your organizational culture support your business strategy? Journal of Quality & Participation, 37 (1).

The Value of Applied Research and Alternative Publishing

Ask a crusty old academic and he/she will tell you that unless research is in a peer-reviewed journal it has no value and should be discarded as “junk” work. In contrast, talk to a seasoned CEO and he/she will tell you that if university research has any value in the market it will need to be applied to solve business problems. This divergence of thought and perspective is changing the way universities and corporations disseminate and use information.

There are some academic traditions that unnecessarily restrict the value of education and hinder the growth of the business community. Corporations are end users of information that apply research build products, enhance services, and improve operations. Failure to see the value of alternative methods of conducting, publishing, and using research beyond elitist journals defeats the purpose of academic studies.

CEO’s, executives, and consultants rely heavily on information to make strategic decisions. They obtain ideas   online, databases, libraries, magazines and personal knowledge. Few have direct access to university libraries and expensive subscription journals. When was the last time you saw a copy of a scientific journal on a CEO’s desk?

Assuming that the CEO understood academic jargon, it is still doubtful the company would be willing to pay the costs associated with high-end academic journals. There is a growing crisis where academic knowledge is becoming restrictive and inflexible reducing the amount of potential users (Stemper & Williams, 2006). Most businesses won’t have access to groundbreaking research until it is widely available in the market.

The value of research is not based on the quality of the journal, but a number of times the research is used and applied to problems. It is possible that university research agendas include pushing for business application and measuring a number of times it has been quoted by others (“Applying Research”, 2004). Companies are willing to support universities that create useful informational products.

Improving innovation in business relies on ensuring that the information from academic research is making its way into industry. Reducing bottlenecks and restrictions improves information flow, and increases the likelihood it will reach intended audiences. Open-access journals and alternative publication sources create a more direct connection to industry and should not be discarded based on tradition. The value of academic research is in its usefulness and its ability to enhance industry innovation versus the type of journal it originated. 

Stemper, J. & Williams, K. (2006). Scholarly communication: turning crisis into opportunity. College & Research Libraries, 67 (11). 

“Applying Research”. (2004). Applying research and building value: business faculty at work. Georgia Trend, 20 (3).

 

Developing Innovative Capital Through the Subconscious

Creativity leads to innovation that improves organizational functioning by solving problems. As more problems are resolved, the organization continues growing to become competitive on the market. Even though the subconscious influences creativity and problem solving, it is has been ignored as pseudo-science despite impacting almost everything in our lives; including solving business problems.

Creativity relies on our ability to resolve problems that lead to the survival of both ourselves and society. Creative people like Einstein are honored because they have the capacity to develop new solutions to long unsolved problems. Without the use of the subconscious, creativity would have never been turned into a useful form.

Problem-solving requires preparation, incubation, illumination, and verification (Grupas, 1990). A creative person studies a problem and develops a knowledge base, allows possible solutions to incubate in the subconscious, percolates a solution into a conscious form that is verified through research.

The reason the subconscious is so powerful is that it is a self-organizing system that continually makes associations/connections between information (Andreasen, 2011). As the brain builds framework for handling environmental knowledge, it also connects, categories and comes to conclusions of perplexing problems.

The speed and ability of the mind to do this is based on the intelligence level of the individual. Intelligent people are better able to process greater amounts of information and find associations faster. When put to substantial use that innovative creativity has tangible value for business that want to invent new ways of doing things.

People with creative minds don’t often think like everyone else. They use a divergent system of reasoning that creates many different solutions that are eventually pruned back to the most useful ones. This is in contrast to the general population that has been socialized through schooling to use convergent thinking that relies on step-by-step processing models already planned out by someone else.

Divergent thinking can cause difficulties interacting with people. Many intelligent people lose jobs and opportunities only because of the restrictive social circles inherent in most businesses. They may say things that are true but also run against conventional wisdom that doesn’t sit well with ego driven individuals.

Open environments that respect the diversities of people, and the way in which people process information, are more likely to develop innovative environments. Restrictive, position-oriented, highly controlled conditions will restrict innovation. By developing the right open-minded environment, a company can foster the bringing forward of subconscious ideas to develop higher forms of intellectual capital.

Recruiting Business Executives the Military Way!

The military has always fascinated me in terms of how they train leaders to make their way through challenging situations where most of us would not be able to follow. Both business and military leaders share similarities that can provide us with a better understanding of the skills needed to influence people. Marrying the two approaches creates a better executive selection process that can pay companies dividends when these leaders mature.

We must first accept that leadership is not for everyone and those who are sometimes seen as leaders are not always the best candidates. For example, self-interested personalities sometimes rise to the top but their level of leadership wanes when they seek supporters who will need to sacrifice. In my experience, the more demanding and pushy a person is, the less likely they will be able to manage large groups.

On the other hand, a follower could have innate leadership skills that come to the forefront only under certain circumstances. Seeing beyond the obvious by selecting those with leadership traits and abilities can create returns on executive development. Without humility, leaders won’t know when they are wrong, consider the needs of their followers, or think beyond themselves.

According to a study comparing leadership, it found that the military selected candidates based on traits while businesses focused on skills (Hussain and Hussan, 2015). Before moving people into intensive training programs, the military desired persons who had the innate traits to use as a platform for development. In contrast, the business world sought people who displayed high skill levels.

The same study found that successful leaders are separated from mediocre leaders by their relationship abilities. Those that have the capacity to develop working relationships with others, and rely on those relationships to achieve goals, are more successful than those than those who are only task oriented. Even though the study doesn’t mention this, it is entirely possible that task orientation has limited impact on the environment without the help of others.

Leaders set challenging goals, rally people behind those objectives, and can change their styles based on what others need. Adaptability is trait oriented but enhanced through growth in skills, knowledge and abilities. Bridging the gap between military and civilian leadership development relies on finding those with the right innate traits and helping them gain the knowledge needed to be effective.

Hussain, M. & Hassan, H. (2015). Military leadership and implication for business leaders in light of alternative theories. Pakistan Journal of Science, 67 (1).