Sunday, October 31, 2010

Organizational leadership vs dynamics

DeWit and Meyer (2004) describe two dimensions of organizational perspectives: leadership supporting a controlled system creating strategy and implementing it top-down, and dynamics, creating disorganization to achieve strategic renewal. Both dimensions have their value and an organization should consider which perspectives it utilizes in its strategy and operations, or if it can benefit from both - experimenting from new or different ways of working and innovating.

International corporations have grown so big that it is purely impossible to lead purely based on authority and control. Companies are affected by new working methods, new media and generations, who require and impose a less authoritarian way of working. There are demands for new communications tools, virtual collaboration and self management. Time differences and cultures bring new elemnets to having new perspectives.

Sustainability is affecting people´s behaviour and social expectations in respect to travel, production methods and collaboration. New working methods bring cost savings, employee satisfaction and efficiency. It also creates frustration since letting go of the old and learning new is always difficult.

Elements of organizational leadership bring some assets to having a clear direction. It is important however that in a top-down organization strategy is implemented by involving teams in the creation process and encouraging initiative.

Sunday, October 3, 2010

Community based business in China

Director William Toh from Chia Tai Group of Companies explained how Chinese business works. One example is a community created around the business. A transportation company might have their own schools, nursery and social activities to form a community among the employees and their families. Building a relationship with the community is key to doing business. Things are bought within and with the community, not as individuals. Even corruption can be addressed to help the communities and the poor.

Director Toh´s bet on successful consumer goods would be in the range of attractive design and products that appeal to groups or societies. I was thinking, could social networks and eCommerce be developed to take advantage of the already existing communities - or rather nurture them? Usage of internet is mostly in pockets. Number of mobile devices is much more significant than number of PC´s. eCommerce in China will grow but main consumption will still be done through retail. Community thinking applies to planning retail. Feeling and touching are important and that can be best experienced physically.

Individualistic brands such as Nike and Apple, luxury fashion brands do well because Chinese community is about comparison. Best for your family.

Regarding b-to-b the set-up is the same. Make sure you have a network of local partners. Make sure you network with Chinese community in your home market. Bring your wife or husband to meetings. Take care of human resources.