Surfing the business cycle

Darkest before dawn, but a long night

How bad is this economy? Rather than get out of bed, it’s decided to roll over and sleep on. It’s too hard. Unemployment in the US is getting worse, not better. The European debt crisis lurches from one nation to another.

Countries like Australia and Canada that escaped the nastier side of the global meltdown are now struggling with shrinking consumer demand in two-speed economies. China might still be on a roll, but Beijing is trying to rein in excessive lending.

Most of this is unpredictable and out of our control. Is there anything we can be certain about? Take a look at this chart from economist, Bill McBride.

Click to read more ...

With or without you: why branding matters

The convenience of certainty works for all businesses

It’s a big word, branding. People often think it only applies to big business. I recently read a blog claiming that branding is a luxury for small business. It’s a common misconception.

Branding is about certainty and convenience. We buy branded goods because we know what we will get. That’s what a brand does. It takes the uncertainty out of the decision to purchase. 

Click to read more ...

Diversity: It's not just about race and gender

What about smart and dumb? 

The case for more diversity in management is well-researched. Teams that encourage minority opinions regularly make better decisions than those with a narrow view.

That should be no surprise. Anyone who has stress-tested a “great idea” knows it will be more robust if it’s intensely critiqued. While technical ability and relevant knowledge play a big part in effective management, its openness and enquiry that fine-tune successful decisions.

Click to read more ...

Management theories: yours or theirs?

Has management advice actually made any progress?

Doesn’t seem so. Prominent business leaders, management gurus, and leading academics – all three have a history of failure.

It can happen anywhere, anytime. I worked for three years in Singapore in the 1980s. Each year someone was designated “Businessman of the Year”. All three nominees suffered ignominious reversals before I had left, including gaol time.

Click to read more ...

Failure: Do it cheaply and do it less often

Let the “NO” case be heard

How hard is it to temper enthusiasm? Most business advice these days is about how to rev it up, not tone it down. Try standing up at the end of a inspiring and motivating off-site and telling everyone why the amazing new strategy won’t work.

Not a good look.

Yet there seems to be no slowdown in business failures, either at the firm level or the product level. In some ways there seems to be more. The pace of change puts on pressure for more innovation, not less — and more rapid innovation at that. There’s even less time to get it right.

Click to read more ...