Social Risk and Private Reward

Both optimism and pessimism are two different forms of delusion and in business, the game is to treat Triumph and Disaster with the same level of caution.

We all know funding is critical for innovation and the survival of SMEs, A lot of the funds spent for upstream research can be channeled back to the business through downstream commercialization.

One form of funding that should not be ignored is the government:

Google’s algorithm was funded by the National Science Foundation, Iphone smart technologies were also funded by the U.S government; GPS, touchscreen display and Siri. Apple also benefited from early-stage finance from the U.S. government's Small Business Investment Company program.

Venture capitalist only got involved long after the proof of concept had been established, in other words the government took more risk to spark innovation in a strategic area. Once the business is running, the stock market can be an excellent source of funds for expansion, growth and wealth. The same way Apple became the most valuable company for a couple of years.

Government plays several essential roles in the business ecosystem:

Regulating markets- They establish rules and regulations to ensure fair competition, consumer protection, and environmental sustainability.

Providing infrastructure- Governments invest in infrastructure (roads, utilities, etc.) that businesses rely on for operations.

Fostering innovation- Through policies, funding, and research, they encourage technological advancements.

Stabilizing the economy- Governments manage monetary policy, fiscal stimulus, and economic stability.

Promoting social welfare- They address inequality, poverty, and social issues.

The balance between government intervention and free-market dynamics varies across countries and industries.

However, an efficient market prices things accurately. The more informed buyers and sellers who behave in a logical fashion, the more efficient a market becomes. The stock market is somewhat efficient, meaning it prices stocks at rational levels over the long term. But on any given day, the stock market is driven by alternating cycles of fear and greed which distort prices away from their fair value. Day traders are simply gamblers who are one trade from disaster and the market is more efficient with investors.

A smart way to innovate and grow your business is to spread the upstream investment risk with government for a triumphant downstream reward which should benefit all stakeholders. 

See You at The Top

Building a Business Footprint

"A business has to be involving, it has to be fun, and it has to exercise your creative instincts" - Sir Richard Branson – founder and chairman of Virgin Group

Poor innovation culture is simply poor leadership strategy, poor leadership is simply poor planning. While SMEs are better able to manage the tension between operating today's business and creating enabling environment for tomorrow's opportunities, traditional multinationals struggle.

The term "business footprint" typically refers to the overall impact of a business's activities on the environment, economy, and society. It encompasses various factors, including:

Environmental footprint: This includes the company's use of natural resources, energy consumption, waste generation, and greenhouse gas emissions. Assessing and reducing environmental impacts is essential for businesses to contribute to sustainability efforts and mitigate climate change.

Economic footprint: This refers to the financial influence of the business, such as its revenue, profits, taxes paid, investments made, and employment opportunities created. A positive economic footprint can contribute to local and global prosperity.

Social footprint: This involves the social consequences of a company's operations, including its impact on employees, communities, customers, and other stakeholders. Factors such as labor practices, community engagement, diversity and inclusion initiatives, and product safety and ethics contribute to the social footprint.

SMEs tend to gravitate away from the command-and-control systems built by expensive lawyers and consultants for giant corporations. By leveraging on group intelligence while keeping their businesses small and lean SMEs encourage greater awareness of value and cultural models across the global landscape.

The SMEs in emerging markets are getting more proficient at building on this model ........

However, in U.S. SMEs account for 97% of the total exporting firms creating less than 30% export value; this is far from optimal, even though SMEs are recognized for their vital role in creating jobs and supporting supply chains in the domestic market, there is still some distance to go in the global village.

In Europe over 90% of all businesses are SMEs creating two-thirds of all jobs in the domestic market

As the online cloud services takes a foothold, it becomes more beneficial to SMEs by allowing entrepreneurs to deploy new operational models, competitive and quality service. The SMEs becomes a micro multinational by keeping the costs of operating in new countries and emerging markets very low.

During moments of deep change and socioeconomic uncertainty, entrepreneurs that adapt quickly will see rapid growth. An astute leader knows that change is a constant; an adaptive leader bakes agility into the company at all levels to help it navigate global change.

To be a global player, you can even loan  out as little as $25
  

Your loan for as little as $25 can make a great impact on entrepreneurs in developing nations. Loans can go to families trying to support an agricultural business in El Salvador. Or groups purchasing additional products for their fruit market in Rwanda. Or a man who needs new tires on his van for his transportation company in Kenya.

Leave a Footprint 

See You at The Top

The Magnetism of Stupidity

It is better to light a candle than to curse the darkness - Chinese proverb.

Most executives rarely think that organizational inefficiencies start with their own management team’s stupidity.

The combination of intelligence in different people is more difficult than the combination of stupidity. This isn’t only because the power of stupidity is generally underestimated and its consequences often unpredictable. But,

“Stupidity is brainless; it doesn’t need to think, get organized, or plan ahead to generate a combined effect.......Giancarlo Livraghi.

When elements of the management team are dysfunctional, they soon start recruiting people with similar traits, the organization becomes polarized with massive pool of super stupid.

Teamwork is also stifled when management has not clearly communicated their vision and strategic plan to the organization as a whole.

This management inefficiencies soon runs the entire organization into extinction.

Look out for the following dysfunctional trait:

•         Super-human that does not need the help of anyone

•         He does his own thing without asking the advice or input of anyone

•         So smart that simple communication with anyone on the team is an absolute waste of their          time and energy

•         You just don’t know what their temperament will be.

•         Everything has got to go their way and cannot see beyond themselves

Coincidence can put wise words in anyone's mouth.........But the transfer of intelligence is a much more complex process.

What Is Intelligence? 

Intelligence, in the realm of psychology, encompasses various mental capacities:

Learning from experiences- The ability to acquire knowledge through exposure to different situations.

Adaptation- Adjusting to new environments and challenges.

Abstract thinking- Grasping complex ideas.

Problem-solving and critical thinking.

• Positive transfer, when learning in one situation facilitates learning in another (e.g., violin skills aiding piano learning).
• Negative transfer, learning one task makes another task harder (e.g., speaking Telugu hindering Malayalam learning).
• Zero transfer, learning one activity neither helps nor hinders another task (e.g., history knowledge and driving a car)

Psychologist Robert Sternberg aptly defined intelligence as “the mental abilities necessary for adaptation to, as well as shaping and selection of, any environmental context” 

See You at The Top

Global Dynamics

"Half of Google's revenue comes from selling text-based ads that are placed near search results and are related to the topic of the search. Another half of its revenues come from licensing its search technology to companies like Yahoo."----- Eric Schmidt, CEO of Google.

"Global dynamics" refers to the interconnected and constantly evolving interactions, relationships, and forces that shape the world on a global scale. These dynamics encompass a wide range of political, economic, social, environmental, and technological factors that influence the behavior and outcomes of countries, regions, and international actors. Here are some key aspects of global dynamics:

Geopolitical Shifts:

Global dynamics are influenced by geopolitical shifts, including changes in power dynamics, alliances, and rivalries among nations. Factors such as territorial disputes, military conflicts, and diplomatic relations shape the geopolitical landscape and influence global stability and security.

Economic Interdependence:

Economic globalization has led to increased interdependence among countries, with economic activities, trade flows, investment patterns, and supply chains spanning across borders. Global economic dynamics are shaped by factors such as economic growth, trade agreements, monetary policies, financial markets, and international trade tensions.

United States is still leading the global market in innovation and hence home country to the worlds most valuable companies. 

Lets look at some interesting results.

Apple 2011 financial results:
$108.25 billion in sales
$25.92 billion in profits

Microsoft 2011 financial results:
$69.94 billion in sales
$23.15 billion in profits

Google 2011 financial results:
$37.9 billion in sales
$11.7 billion in profits

These companies were started by ordinary people who discovered their purpose /passion early. Even without college degrees, they built global brands.

However, the global dynamics is changing;

The USA's share of World Gross Domestic Product has dropped from
31.8% in 2001 to just 21.6% (a drop of -32.3%) in 2011, while China's
share of global GDP grew by 153.6% in the same period.

Japan experienced a -35.2% drop and the UK lost -24.1%, while India
(+72%), Turkey (+81%), Brazil (+105%), Russia (+178%), and Australia
(+65.6%) saw their economies grow significantly in that period.

Global dynamics is inevitable, but it does not have to be at cost to the western world. A model that empowers and challenges every human resource in western nations must be found.

let's look at some empowering stories in the entertainment industry…

Bill Cosby shined shoes and sold produce when he was young.

Danny DeVito was a formally trained hair stylist .

Michael Douglas once worked as a gas station attendant.

Tom Hanks once worked as a hotel bellman and carried bags for a number of celebs.

Dan Akroyd was a mail sorter for Canada's national postal service.

Jennifer Aniston was both a telemarketer and waitress.

Alec Baldwin was once a bouncer.

Halle Berry worked at Higbee's Department store in the children's department.

Sandra Bullock worked as a bartender.

Simon Cowell was a mailroom clerk for EMI Music Publishing where his father worked.

Understanding and navigating global dynamics require a multidisciplinary approach, strategic foresight, and collaboration among governments, businesses, civil society organizations, and individuals to address complex challenges, seize opportunities, and build a more sustainable and equitable world. By recognizing the interconnectedness of global dynamics and working together to promote cooperation and solidarity, stakeholders can contribute to positive outcomes and shared prosperity in an increasingly interconnected and interdependent world.

Every human resource that discovers purpose is a global asset...............

See You at The Top

Developing a Model for Emerging Market

"Emerging markets often require business models that have a much broader scope," ----------- Josh Suskewicz

With established markets becoming saturated, multinational corporations (MNCs) have turned increasingly to emerging markets (EMs) in the developing world.

Such EM strategies have been targeted almost exclusively at the wealthy elite at the top of the economic pyramid. Recently, however, a number of MNCs have launched new initiatives that explore the untapped market potential at the base of the economic pyramid, the largest and fastest-growing segment of the world’s population at 4 billion people. Almost completely ignored until recently is a huge base of potential customers whose annual purchasing power parity (PPP) is less than $1500 per year.

And there are a lot more poor people in the world than rich people. To be a global business and to have a global market, you have to participate in all segments.

– Keki Dadiseth, Director, Hindustan Lever Limited (Unilever’s India subsidiary), discussing his company’s efforts to target the rural poor

The vast majority of the populations in emerging markets operate primarily in the large, but hidden, informal economies that are not recorded in official gross national product (GNP) or PPP statistics. Across the globe, it has been estimated that the informal sector includes more than $9 trillion in hidden (or unregistered) assets,

To succeed in Emerging markets, you have to Co-invent custom solutions:

•  Allow for user innovation and modification.
•  Product and business model design should co-evolve.
• Build local capacity.
• Recognize the value of existing local institutions.
• See gaps in local infrastructure or missing services as potential opportunities.

Emerging markets have to deal with scarcity in so many forms: lack of capital, inadequate infrastructure, and low levels of literacy, however, they do not have a scarcity of ingenuity and determination to succeed. .

I Wish You Great Success

Innovation and Group Intelligence

 

Innovation is the only insurance against irrelevance and collective intelligence, is the ability of a team to solve problems.

Collective intelligence is measurable and correlates more with the social abilities of the team members than with the team's aggregate individual IQ.

In most instances innovative success is owed more to the spirit of a lone innovator rather than to the obliging climate of a management model.

The idea is to merge the energy of a lone innovator with the collective intelligence of a group in order to create an unstoppable innovative force that generates new revenue streams, think of social media like Facebook, Apple in music and Amazon in cloud services.

For the Enterpreneur:
The building blocks of a great network aren't purpose-driven meetings — they're casual encounters, agenda-less coffee catch-ups, and even favors for people who don't seem to be in any position to help you right now. Build your network that way, and when you present your acquaintances with a problem the group intelligence begins to crystalize

When talking about your goals for the business, be honest. A little candor, a little vulnerability, goes a long way in turning a conversation from trite to meaningful.

Ninety-seven times out of a hundred, the conversation continued as normal, with a reciprocal introduction or update and additional exchanging of information and small talk.

But there is a magical 3% whose response changes the innovative landscape and that is all you need

For the Business:
Ultimately, every management process must be a catalyst for innovation.

The planning process needs to put a premium on game-changing ideas.

The budgeting system needs to give innovators quick access to experimental capital.

IT systems need to support idea sharing.

Performance management systems need to track innovation performance at every level.

Training and development programs need to bolster innovation skills.

Market research and customer insight efforts needs to be indept.

The compensation process has to reward those who take smart risks

The criteria for hiring and promotion needs to give weight to creativity and innovative leadership.

Teams and networks also have vulnerabilities — such as increased costs of collaboration, invisible delays, conflicts with formal work processes, and the effects on individual workers with different learning and communications styles. Addressing these vulnerabilities means understanding more about how we strengthen our collective intelligence and innovative force.

For Instance, we have a challenge; How can we get more advertising Revenue?

Special thanks to Steven Rice and Kathryn Minshew

See You at the Top

Enterprenueral Migrants

 

Europe's culture is deeply inhospitable to entrepreneurs and immigrants, with the eurozone crises there is a new element of faith in innovation and entrepreneurship while immigrants are still seen as a threat to European jobs.

With popular political statements such as:
"British Jobs for the British People"
"70% French Tax on the Wealthy Entrepreneur"

Although Finland and Switzerland are one of the most productive nations and Germany is just one of the very few countries to have a trade surplus with China, not a lot is attributed to innovation an entrepreneurship.

Here are some interesting facts:

• Over 19% of the recent U.S patents were issued to immigrants alone, or to immigrants collaborating with U.S.-born co-inventors. These patents generated more than 1,600 jobs.
• Over 40% of Fortune 500 companies operating in 2010 were founded by immigrants or their children, including Apple, IBM, Disney, Pfizer, Intel, AT&T, Dupont and McDonalds. The companies noted in this study had combined revenues of $4.2 trillion — more than the GDP of most countries.
• Over 23% (114) of the companies on the list were founded by children of immigrants; these include Citigroup, Walgreens, UPS, Office Depot, H.J. Heinz and others.

Half of the world's skilled migrants go to U.S and in the past two decades, they have created 25% of all American venture-backed companies.

"BRAINS" Act, an immigration bill to make an additional 55,000 green cards available each year to foreign-born graduates of American universities, if they have advanced degrees in science, technology, engineering or math (STEM) fields.

Blueseed has plans for a floating city 12miles from Silicon Valley where migrant entrepreneurs and workers can stay on international waters.

Over 500 start-ups with French founders in the San Francisco Bay area.
Over 50,000 Germans in Silicon Valley

last year and perhaps for some time to come China has the highest entrepreneurial migrants to U.S

So why bet on entrepreneurship when we know for a fact that.

• Just 30% of start-ups live past 10 years.
• Fewer than 10% grow.
• Only 3% grow substantially.

This means most entrepreneurs are destined to fail, so there's a high cost underlying successful enterprise.

In other words, poor leadership is causing much more entrepreneurial failure than success.

What can we learn from Immigrants and how can we be great Leaders?

Immigrants have three fundamental ideologies.
Unleash Your Passion
Look for Opportunities Everywhere
Work With a Generous Purpose Entrepreneurs start from that place we call Heart, inner passion and desire that is not easily malleable, but turning that passion into a business reality requires guts. It takes Guts to get past those worries, to persevere when the going gets tough, and to adapt when circumstances demand it.

Guts are about having the courage to initiate, endure, and evolve around an idea.

A great leader may outsource accounting skills, but he never outsources relationship skills.

"When you grow up you tend to get told the world is the way it is... Try to have a nice family life, have fun, set aside a little money. That's a very limited life. Life can be much broader once you learn one simple fact, and that is - everything around you, were made up by people that were no smarter than you. And you can change it, you can influence it." - Steve Jobs

Unleash your Passion and see you at the Top.