How Companies Can Overcome the Pitfalls of Globalization

Global Vision

Overcome the Pitfalls of Globalization

Does your company have global aspirations?

How do you determine which countries to pursue and which to avoid?

 

When growth stalls, many managers decide that the answer to the slowing metrics is in going global. In many instances, managers don’t appreciate the inherent risks, miss the cultural nuances, and miscalculate the legal costs of the lofty goals globalization requires.

Robert Salomon is a professor of International Management and Faculty Scholar at NYU’s Stern School of Business and has been teaching and studying the effects of globalization for nearly 20 years. His new book, Global Vision: How Companies Can Overcome the Pitfalls of Globalization, is a guide to successfully navigating the global marketplace.

As the CEO of a global business myself, I was intrigued by the lessons in the book and reached out to Robert to share some of his findings with you.

 

The Problem of Unbridled Optimism

Global Vision . CoverIn your book, you say that one of the biggest problems with globalization is managers and their unbridled optimistic attitude. How does this increase risk?

The problem is that managers systematically overestimate the benefits of globalization and underestimate its costs. They tend to believe that globalization is relatively easy, and they therefore overlook the economic, political, and cultural risks involved.

Many people cite Thomas Friedman’s book “The World is Flat” as an urgent call toward globalization. What’s usually wrong with this thinking?

More and more research suggests that the world is less global than Friedman suggests, and not just by a little, but by a lot. And so if managers base their views of globalization on Friedman’s work, they will end up making very dangerous assumptions about globalization’s risks and challenges.

Why is overestimating market potential so prevalent?

It is prevalent because managers tend to think that consumers will respond to their company’s products similarly in every market. They therefore believe that they can simply port their existing business model to global markets with little change. In this respect, they fail to recognize the challenges that culture—in the form of different consumer cultures—can place on their business model.

 

Strategic Mistake: Porting existing business models to global markets with little change.

 

Understanding the Importance of Culture

Your research led you to the conclusion that “culture is probably the least understood.” Tell us more about the importance of culture and its role.

Culture is the least well understood of all of globalization’s challenges because culture is difficult to define and measure. Is culture about language differences? Yes. Is culture about religious differences? Yes. Is culture about differences in behaviors, norms, customs, and social structure? Yes. But even if we recognize these differences across countries, they are difficult to quantify and measure. Because culture is difficult to quantify and measure, managers end up discounting its effect on globalization. In my book, Global Vision, I discuss how culture impacts globalization and also how managers can quantify the impact of culture on global companies.

 

Culture is the least understood of the challenges of global expansion.

Break the Rules and Upend Business As Usual

Under New Management

Upend Business As Usual

 

Should salaries be public?

Is it possible to eliminate the performance review process?

Should customers come second?

Do open offices work?

 

Most businesses have rules and practices that have developed over many years. Whether inherited from long ago practices or invented by the company, these rules often continue unquestioned.

My friend Dr. David Burkus is a business school professor and author who questions many common business practices. His research reveals that many of the rules are outdated, misguided, and possibly counterproductive. His research looks at the contrarian practices of companies such as Zappos and Netflix where the rules are being rewritten.

 

“Great leaders don’t settle for low levels of efficiency.” –David Burkus

 

From designing office space to eliminating annual performance reviews and unlimited vacation policies, David’s book ignites a debate and conversation.

Some of the “rules” may stand the test of time because they work while others may be held in place based solely on tradition. Regardless, his newest book, Under New Management: How Leading Organizations Are Upending Business As Usual, is a good reminder that it’s time to review all the rules and determine whether they still serve a valid purpose.

 

The Case for Change

David, in one book, you have assembled some of the most contrarian practices being used in business today. What led you to this approach?Under New Management

After I wrote my first book, The Myths of Creativity, in which I talked a bit about practices like hackathons and 20% time that spurred innovation, I started to get even more curious about the things innovative companies were doing that seemed unusual or opposite of best practices. As I travelled down that rabbit hole I found lots of people writing about why the ideas were unique and appealing, but no one was making the case for why these practices work so well. Since organizational psychology is my background, I started to look at these ideas through the lens of human behavior and found compelling reasons for why they might be better than best practices.

Do you believe many of our management practices and principles are outdated? Is this a global view?

Well that depends. As Daniel Pink rightly pointed out in Drive, the shift from industrial work to knowledge work left a lot that needed to change about how we motivate people. I think that shift has broader management implications, which I explore in Under New Management. So yes, if you’re organization does mostly knowledge work, it’s likely that your management practices are rooted in some outdated assumptions.

 

Ban Email and Increase Productivity

Let’s look at email. Does banning email really work? Do these techniques work in larger organizations? Doesn’t moving to other technology tools just move the problem and not address the fact that it is people, not the tool, that cause it?

Email is an amazing tool because it’s cheap and it’s asynchronous. But it’s a difficult tool for exactly that reason. It’s easy to send…so we send it far too much. And because it’s asynchronous, it moved us to a world where we’re always on. There are a lot of other tools that are also cheap and asynchronous, but it’s a matter of how the tool is used.

And yes, to some extent, it’s a people issue. The companies that banned email took a deep look at their communication needs and settled on another tool for internal communication. If you’ve looked at what your team’s communication needs are and email meets those needs….great. But odds are, there’s a better tool out there.

 

“Leaders are discovering that limiting email improves productivity.” –David Burkus

 

13 Counterintuitive Ideas to Upend Business As Usual

  1. Outlaw email.
  2. Put customers second.
  3. Lose the standard vacation policy.
  4. Pay people to quit.
  5. Make salaries transparent.
  6. Ban non-competes.
  7. Ditch performance appraisals.
  8. Hire as a team.
  9. Write the Org chart in pencil.
  10. Close open offices.
  11. Take sabbaticals.
  12. Fire the managers.
  13. Celebrate departures.

 

Eliminate the Performance Appraisal

6 Ways to Create A Magnetic Mindset and Attract Business

Magnetic: The Art of Attracting Business

Build A Magnetic Brand

 

Why do some businesses overflow with customers while others barely make it?

How do you attract customers?

What are the growth strategies that leading businesses use to gain momentum?

 

“Great work is magnetic.” -Joe Calloway

 

Joe Calloway has studied businesses that consistently create positive experiences. His new book, Magnetic: The Art Of Attracting Business, is a look behind the scenes at the strategy, the people, and the art behind becoming a magnetic business. In these organizations, growth is a result of happy customers sending more and more business and referrals. Employees are happy, helping to recruit others. And the momentum continues unabated to create even more success.

I recently talked with Joe about what it takes to become a magnetic business.

 

Become a Magnetic Business

Would you share one example of a business that is magnetic?

Pancake PantryI think that the business pictured on the first page of the book is a classic example of a magnetic business. The Pancake Pantry has a line of customers in front every morning, rain or shine, sleet or snow. This truly is what every business of any kind aspires to: to have customers so loyal to and enthusiastic about your business that they’d be willing to stand in line, in the rain, to give you their money.

Pancake Pantry excels at the basics of what a restaurant should be and have, including a great location, great food, great service.  But here’s the lesson:  there are no gimmicks.  There’s no contrived “wow” factor.  They simply offer excellent value to their customers, and those customers tell other customers.  Thus, the line out front.

 

“It’s very easy to be different, but very difficult to be better.” -Jony Ive

 

6 Factors to Creating a Magnetic Mindset

You start your book by recognizing that, “Becoming magnetic is a way of thinking.”  How do leaders develop the magnetic mindset?

I think there are a handful of basic factors at work that create a magnetic mindset:

  1. Always be focused on creating value for your customers.
  2. Simplify the way you think about your business.  Don’t overthink it.  Don’t over-complicate it.
  3. Never underestimate your competition.
  4. Be exceptionally easy to work with.
  5. Make sure that the other guy wins.
  6. Be consistently excellent.  Consistency of performance is the great brand builder.

If you let these factors guide your thinking, you’ve got a magnetic mindset.

 

Don’t Overdo Social Media

You teach and talk about the importance of social media but also about overthinking, overworking or overdoing its role relative to everything else. As I say this, what comes to mind as “magnetic advice” about social media?

Social media is vitally important in today’s marketplace and becoming more important all the time.  Of course you should participate on social media, but be selective.  You don’t have to be on everything – that would take up all your time and drive you crazy trying to keep up.  Where is your target market?  If they’re on Pintrest, be there with them.  My market is on twitter, Facebook, and LinkedIn, so that’s where I am.

But here’s the key:  What you say about yourself on social media is insignificant in importance and impact compared to what your customers/clients say about you.  No ad campaign in the world has the positive impact of having 100 reviews of your business with almost all of them being 5 Star reviews.

The way to use social media to grow your business and attract new customers is to do such a great job on a handful of vitally important things that matter to your customers.  That’s really one of the core messages in Magnetic: The Art Of Attracting Business.

 

Nielsen: 43% of consumers more likely to buy when learning about it through social media.

 

What’s your version of win-win?

9781119147343.pdfThe Win-Win strategy is what has made me successful.  It’s the single most powerful strategy known and is the foundation of how any consistently successful business or individual relates to other people.

My version of Win-Win is to always think in terms of what kind of experience my actions will create for my clients and others.  How does doing business with me make them feel?

We all want people to love doing business with us, and if we are to create that, then we have to play Win-Win with them.

It’s the simplest and most effective relationship and business strategy known.

 

6 Factors to Create a Magnetic Mindset

 

  1. Always be focused on creating value for your customers.
  2. Simplify the way you think about your business.  Don’t overthink it.  Don’t over-complicate it.
  3. Never underestimate your competition.
  4. Be exceptionally easy to work with.
  5. Make sure that the other guy wins.
  6. Be consistently excellent.  Consistency of performance is the great brand builder.

 

“When you say no to the wrong people, it opens up the space for the right people to come in.” -Joe Calloway

The Surprising Potential of Entrepreneurship

Entrepreneur

The Potential of Entrepreneurship

When you hear the word “entrepreneur,” what do you think of? Many may think wealth creation, risk taking, or start ups.

What if it also meant social change? What if it was a way to close the wealth gap? What if we looked at it in a completely different way?

To say Steve Mariotti believes in entrepreneurship is more than an understatement. He is the founder of the Network for Teaching Entrepreneurship (NFTE), a global nonprofit organization that has educated more than half a million students. He passionately believes in entrepreneurship as a transformational experience that can be used in schools, prisons, villages, and inner cities. His new book, An Entrepreneur’s Manifesto takes a completely different view of the role of entrepreneurship.

 

A Life-Changing Jog

You were mugged by a group of teenagers and it changed you. Not many people would have an event like that and decide to serve low-income teens for life. Would you share this story and how it impacted you? 

Cover ImageI was mugged in 1981 by five teenagers while I was jogging one afternoon along the East River on New York City’s Lower East Side. I only had $10 in my jogging shorts and gave that to them, but they continued to threaten and humiliate me. The mugging caught me emotionally off guard, and I had flashbacks and anxiety afterward. Frankly, I became afraid of tough-looking kids. And there are a lot of tough-looking kids in New York City!

To overcome that fear, I decided to face it head-on by becoming a New York City public school teacher. My first assignment was at Boys and Girls High in Bedford Stuyvesant, which was full of tough-looking kids. Within the first day, though, I wasn’t afraid anymore. They were just kids!

The mugging also got me interested in the huge risk my muggers were taking by assaulting people for small amounts of money. Had they been able to sell me something or ask me to invest in a business deal, they could have gotten a lot more money, and it would have been a win/win situation for everyone.

I began sneaking business lessons into my classes, and my students were riveted by them. They were eager to understand how business works, and that in turn motivated them to learn math, reading and writing. In 1987, I founded the Network for Teaching Entrepreneurship to bring entrepreneurship education to low-income youth around the world. To date there are more than 600,000 graduates of NFTE programs from Chicago to China.

“Entrepreneurship education really could change the world.” -Steve Mariotti

 

Anyone Can Learn Business

101 Customer Service Quotes To Better Your Business

Very classy way to display the high standarts of your services the customer can expect of Yours.

Customer First

Every business wants to develop a stellar reputation. Over time, that positive sentiment not only earns repeat business, but also eventually earns trust. Customer service is vitally important to establish and grow that trust. Every interaction with you or your brand offers the incredible opportunity to build a relationship and fortify your position.

In the social media age, your business reputation can catapult you to a beloved partner or sink you to nothing in almost no time flat.

Here are a collection of customer service quotes all designed to remind us of the importance of the customer.

 

“Make the customer’s problem your problem.” –Shep Hyken

 

“If you want customers to know they matter to you, show it by being interested in what matters to them.” –Scott McKain

 

“There are no traffic jams on the extra mile.” –Zig Ziglar

 

“It is not the employer who pays the wages. Employers only handle the money. It is the customer who pays the wages.” –Henry Ford

 

“Do what you do so well that they will want to see it again and bring their friends.” –Walt Disney

 

“To understand the man, you must first walk a mile in his moccasins.” –North American Indian Proverb

 

“The purpose of a business is to create a customer who creates customers.” –Shiu Singh

 

“It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.” –Charles Darwin

 

“If you do build a great experience, customers tell each other about that. Word of mouth is very powerful.” –Jeff Bezos

 

“There is only one boss: the customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else.” –Sam Walton

 

“The way to a customer’s heart is much more than a loyalty program. Making customer evangelists is about creating experiences worth talking about.” –Valeria Maltoni

 

“There is a spiritual aspect to our lives—when we give we receive—when a business does something good for somebody, that somebody feels good about them!” –Ben Cohen

 

“A brand is defined by the customer’s experience. The experience is delivered by the employees.” –Shep Hyken

 

“Unless you have 100% customer satisfaction, you must improve.” –Horst Schulz

 

“Complaints often contain the seeds for growth.” –Skip Prichard

 

“Choose to deliver amazing service to your customers. You’ll stand out because they don’t get it anywhere else.” –Kevin Stirtz

 

“People expect good service but few are willing to give it.” –Robert Gately


“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” –Warren Buffett

 

“Good customer service costs less than bad customer service.” –Sally Gronow

 

“Here is a powerful yet simple rule. Always give people more than they expect to get.” –Nelson Boswell

 

“Spend a lot of time talking to customers face to face. You’d be amazed how many companies don’t listen to their customers.” –Ross Perot

 

“Always do more than is required of you.” –George Patton

 

“Customers will want to talk to you if they believe you can solve their problems.” –Jeffery Gitomer

 

“The result of a business is a satisfied customer.” –Peter Drucker

 

“The most successful organizations are the ones that make it easier to do business with them.” –Scott McKain

 

“Customer service represents the heart of a brand in the hearts of its customers.” –Kate Nasser

 

“What you get by achieving your goals is not as important as what you become by achieving your goals.” –Zig Ziglar

 

“Inconsistent customer service is worse than bad customer service.” –Martin Baird

 

“Courteous treatment will make a customer a walking advertisement.” –J.C. Penney

 

“When the customer comes first, the customer will last.” –Robert Half