Danger! Danger Will Robinson! Danger!

The Weightless Economy

Until this morning (call me ignorant) I had not come across the concept of the 'weightless economy'.  It was mentioned by an economist while talking about the recovery of the New Zealand economy.

So what is it?  I honestly don't know but I have a book on reserve at the local library that I am going to get out shortly (within the next hour) and will start reading.

Here is an excerpt from an article published in The Economist -

What is the weightless economy?

"By the weightless economy, I mean that part of the economy comprising the following four categories:

1. Information and communications technology (ICT), including the Internet.

2. Intellectual property, including not only patents and copyrights but more broadly, namebrands, trademarks, advertising, financial and consulting services, health care (medical knowledge), and education.

3. Electronic libraries and databases, including new media, video entertainment, and broadcasting.

4. Biotechnology, which includes carbon-based libraries and databases, as well as pharmaceuticals.

(Source: http://econ.lse.ac.uk/~dquah/tweirl0.html)

Here's my hypothesis - a weightless economy is one that uses and embraces the knowledge economy and virtual skills of people to generate revenue and ultimately create wealth.

The idea of an economy that is not centred on bricks and mortar, buildings or manual trades strikes me as being real common sense.  It also begs the question - are you lowering or increasing your weight as a part of the economy?

Am I right - let's wait and see.  In the meantime here a few websites I found that focus on the aformentioned concept -

http://www.nzinstitute.org/index.php

http://www.investopedia.com/terms/w/weightless-economy.asp

http://openlearn.open.ac.uk/mod/oucontent/view.php?id=399092&section=1.3.4

 

2011 Edelman Trust Barometer - my thoughts

The Edelman Trust Barometer is an annual questionaire that is given to people from around the world to gauge what they think the big issues are as far as business goes.

This is an interesting exercise with some valuable insights.  Self-reflection is more effective when coupled with realistic and constructive feedback compared with the stories that we tell ourselves.

So my thoughts centre around the personal areas of management.  That is

• How do we know that people trust us?
• What behaviors do we exhibit that show that we are trustworthy?
• If you were someone else would you trust you?  If not - why not?

Trust is a huge issue.  The simple fact of being alive means that you are trusting people.  Managing people, business or others wants and desires is no small matter.

Book review: Barack, Inc.: Winning Business Lessons of the Obama Campaign

This is a neat and tidy little management book that describes and explains the hows and whys of the strategies used in Barack Obama's successful presidential campaign.

Common sense approaches to management - people and campaigns.  That is the easeiest way to describe this book.  There is nothing to flashy or gorund breaking about this book.  Rather it neatly captures the essences of what President Obama did right in his campaign.  There are plenty of anecdotes and nice stories that back up what the authors have written all the way through.

Here are the three core things I got from the book -

• Keep cool.  Temperament is vital.
• Keep in touch.  Social media is where it is at for allowing people to interact with you.
• Keep in front.  This relates to both leadership and direction.

It is a simple book that has been well written.  A good reader could complete this book in 3 to 4 hours.

My thoughts on NZ's trade agreement with Hong Kong

What a great idea!  Negotiate a trade agreement with the most competitive and financially sound market in Asia.  No trade agreements are ever reached without a lot of hard work, a lot of schmoozing and without a doubt a lot of concession making.

Here are a few basic facts about Hong Kong -

• Population:7.0 million,
• GDP (PPP): $306.5 billion, 2.4% growth, 5.7% 5-year compound annual growth, $43,924 per capita.
• Unemployment: 3.5%
• Inflation (CPI): 4.3%
• FDI Inflow: $63.0 billion

(Source: http://www.heritage.org/index/country/hongkong)

Here are a few basic facts about New Zealand -

• Population: 4.3 million
• GDP (PPP): $115.4 billion, -1.6% growth, 2.0% 5-year compound annual growth, $27,029 per capita
• Unemployment: 4.2%
• Inflation (CPI): 4.0%
• FDI Inflow: $2.0 billion

(Source: http://www.heritage.org/Index/Country/NewZealand)

So Hong Kong wins in all areas.  Interestingly New Zealand ranks at number four in the region on the Index of Economic Freedom.

So what do these numbers tell us?  Hong Kong has strong wealth, a growing economy and will provide huge possibilities for trade in the future.

What interests me about these trade agreements is what does New Zealand have to offer that Hong Kong would want to partner up with us?  Seriously.  New Zealand has a lot of land, a lot of primary goods e.g. dairy products, tourism and wood products.  Another thing that New Zealand has is a lot of smart and analytical people.

China and Hong Kong are both friends of New Zealand and a lot of kiwi's (slang) head over to those countries to establish, grow and expand their business opportunities.  I sincerely hope the economic benefits of such an agreement create waves into the future and not just ripples in the short term on a very big pond.

So we shall wait and see how this relationship develops over time.  I would expect that there will be few tangible results or effects for at least 3 to 6 months.

If anyone needs any help - I'm always available.

gapingvoid gallery

Every day a new cartoon is created that relates to the world of business.  Over at gapingviod.com the focus is on creating small cartoons everyday that will both put a smile on your dial as well as get your brain ticking over.

Head over to the website by clicking this link and check it out for yourself - gapingvoid gallery

Keeping The Pulse

Understanding and knowing what is happening within a business and an organisation requires more than a report a month.  A single sided A4 piece of paper with some bullet points is not the best way to measure the life force of your business.  Here are a few better ways (in no particular order) -

1. Talk to people - daily.  Keyboards and KPI's are great but I prefer to speak to the person on the floor.  The people on the floor usually will tell it to you straight and while they may not be able to join all the dots and create a full picture they will tell what is and isn't working very quickly.
2. Tell others what you know.  One improvement I have instituted is the weekly newsletter.  It is a one page pdf that summarises what everyone is up to for the week.  This is as much a tool for me to know what is happening and much as it is a tool for everyone else to understand what is happening in on a much larger scale.
3. Read the reports.  Written reports will always be the backbone of a management system.  However I think written reports should be short, sharp, to the point and engage in further action.  Written words should create a sense of urgency or the need for action.
4. Keep it real.  If people and employees know they are being listened to, the more forthcoming they will be with their honest opinions in the future.  Those opinions can be the key markers of the health of the organisation at any given time.

"All lasting business is built on friendship. "  Alfred A. Montapert

(Image: http://www.flickr.com/photos/mik_krakow/3720114318/)

Book Review - How to Do Business in China

Following on from my recent trip to China I thought I would expand my knowledge of the way business works in China.  I searched our local library and found a book that sounded like it would fit the bill perfectly (according to the title anyway).

So I picked up the book - "How to Do Business in China" by Nick Dallas (McGraw-Hill).  Subtitled - 24 lessons in Engaging the Dragon.

So what did I think?  Given that there are 49 pages of content - you can probably guess my thoughts.  This book is big on taking a common sense approach to doing business and launching yourself within the country.  The problem is that most of the lessons in this book are true for any foreign country that you may decide to launch in. 

This is a lightweight book that does little to actually school a person in what you will be walking into when you go to China.  There are plenty of great quotes and anecdotes but there is very little substance in this book.

One commendation I do have is the fact that the writer points readers towards subject areas and topics that will be worth their while if they are considering China as a future potential business partner or frontier.

Final thoughts - this is a nice, compact, short book that is an interesting starting point.  If you are searching for more depth and knowledge about business practice in China then you would be best to find a more specific book that will fit the bill.

CEO Interview - Herbert Hainer (Adidas)

One of the regular features I do is post a link to video where a CEO or similar has been interviewed and they are sharing their thoughts on management and the like.

This week's turn is Herbert Hainer, CEO, of Adidas.  Seeing as how Adidas has managed t position itself as the global leader in sports apparel and sponsorship and also as how the FIFA Football World Cup is being played - Ithought - why not?  Enjoy.

Global Business - The Mindset

Okay so as you can guess following on from my trip abroad I have a certain POV to do with global business.  The powerpoint slideshow I have embedded below goes a long way towards explaining the importance of having a mindset that is bigger than just your local economy.

The Importance Of A Global Mindset

View more presentations from locky1.

I have often wondered in the past where people who excel at their work get their drive and ambition from.  I now think a large part of that is attributable to -

• their interaction with the world at large,
• being exposed to ides bigger than themselves,
• seeing the potential and infinite possibilities that working collaboratively across borders can bring.

Before I took the trip overseas I was quite comfortable and found my job to be very pleasent.  Now I feel invigorated and excited about the possibilities.  I now have a new goal to add to my life book and I shall set out to start achieving that goal tomorrow.

Book Review - This Little Kiddy Went To Market

"This Little Kiddy Went To Market" is a very sobering and interesting book that looks at the effects of business management practices in and on educational systems.  The author has conducted and collated  a survey and review of practices across a number of western world school systems including countries such as - USA, Canada, Australia and New Zealand.

What this book does is assess the impacts on children and school management in action due to the increased involvement of businesses in the education arena.  The book covers subject areas including the supply of branded resources by big business, the results of private businesses managing schools and the teaching of consumer values to school children.

"Children have never before been under such pressure to 'succeed, conform and look good'.  It is little wonder that so many children grow into youths who are unhappy, stressed, fat, delinquent or self-destructive"  (Excerpt from introduction: Sharon Beder).

If you want to know how and why the author reached these conclusions - read the book.  Every one of those statements can be backed up by well researched information and facts from the public arena.

So what did I think?  This book will make you think. The facts are presented in a clear light and very little personal opinion is recorded.  Rather the book requires the reader to draw their own conclusions on every matter listed.  I was astounded at some of the areas of interaction and even learnt some interesting marketing techniques should I ever choose to start marketing to children.


My give this book a two thumbs up rating.  This book is easy to read, broad in scope and definitely worth a read.  Your thinking will be challenged and think you will review your position on topics that up until you now you may not have considered important in your childs education.

Swiss Army Knife - Management Lessons - Market Placement

Mark Di Somma wrote a great post about the Swiss Army Knife on his blog back in 2008.  What he wrote is as relevant today as it was when he wrote it.

Here is a summary of his points -

• Competition can come from unforeseen places. 
• The place of manufacture and production can be used to leverage an advantage.
• Visual branding is vital.
• Who you are perceived to be selling to can also be an important marketing tool.
• The amount of time and care you take to produce your product can set it apart from it's competitors.
• Create a legacy that future generations want to interact with and own.

Here are my thoughts -

• You never know where your competitors may be coming from - so keep in touch with latest trends and fads.  You can start here for some ideas.
• Consumers are aware and passionate about who made and where made the products they are buying.  Use this as a positive.  Small countrys and towns have great appeal.
• One example of a great branding is Fuel Advertising.  They have a mock fuel pump for a door handle at the entrance of their offices.  This is a great idea!
• Way back in time Harley Davidson used to market their motorcycles to Joe Average.  Clean cut, nice guy motorbike riders.  What they didn't realise straight away was that their motorcycles didn't appeal so much to the masses as to the rebels.  So they changed who they were aiming at and completely changed their business.
• Quality is everything.  There is no excuse for selling, making, teaching crap.  There are few spaces for competitive and sustainable company's to do crap.  The same goes for managers.  Learn, train and be the best at what you do.  Quality counts.
• Do it right today and people will come back for more tomorrow!

You Get What You Measure

What are the key aspects of your business and work that you measure?

When you begin to measure something you are able to assess the impacts and success rates of what it is you are trying to achieve.

If you are working to achieve higher turnover - you measure sales!

If you are trying to achieve more website traffic - you measure the hits and content!

If you are trying to get fit - you measure weight loss, stamina gain and strength gains.

In order to know if you will hit your targets and goals - you must measure your development as you go.

Aim, Analyse and Achieve.

Trends - Predict them before they happen.

There are a few keys to winning and remaining sustainable. Here are a few generic ones -

1. Predict what's around the corner.


2. Plan to change to match what's coming.


3. Pass on your knowledge to others.

What will 2010 bring? Read the newspapers in 2009 for a decent place to start thinking about it.

Also try this article by David Armano who outlines what he thinks will be the six big social media trends in 2010.

In life as well as business, you have a few options -

• Ignore the trends and hope they will go away,


• Follow the trends and keep on playing catch up

OR

• Create your own trends!

The choice and the power is yours.

Customer Service - Rarotonga Examples

We had a couple of interesting instances while travelling and staying in Rarotonga.

Virgin Blue Airlines. Cut price airline that used friendly staff. Excellent informal service that everyday people could relate to.

• Guess what? The plane was absolutely full!


• Why? Virgin have figured out what customers want and they give it to them. Cheap holidays and the ability to travel.


• How do they do it? Cut the frills.


• Lesson? Know your customer and what is driving their decisions.

Hotel attendants. At the hotel we were staying at the reception girls had to be asked/told quite specific instructions for them to act on them. We visited another hotel and the levels of service were far better.

Example - calling a taxi.

• Hotel 1 - we asked for a taxi to be ordered and were told to come back later and the person would do something. This was nothing short of being fobbed off.


• Hotel 2 - we asked for a taxi to pick us up a bit earlier. The taxi company wasn't listed in the phone book. What did the reception girls do? Rang directory and locals to get the phone number.

Huge differences in the level of service. Hotel 1 could move from 3 stars to 4 stars with some training of staff to understand their customers better. A little initiative goes a long way.

The Right Product

The secret to marketing (and business in general) is to sell the right product at the right price.

Example - last night I went to McDonald's with the family - 2 adults and 2 kids. I looked at the menu board but couldn't see any deals that were value for money that could allow everyone to eat well. So what did we do?

We went down the road to Burger King instead. Why? They have bundled dinners available after 5.30pm that gave all of us a good meal at a good price. There was - ease of choice, the price was right, everyone was happy. Plus there were plenty of customers!

You have to sell to people based on their needs, drivers and motivations - not yours.

Interestingly Slate.com have an article about why McDonald's are doing well through the recession (compared to restaurants and cafes).