Leadership & Mindset
4 Tips to remember when Outsourcing to China and beyond
I have spoken and written about outsourcing to China for a couple of years now. Although China does require special handling, many of the high level recommendations are the same as regardless of where you decide to outsource. So here is a summary style high level overview of some of the important considerations: Ask Why: Ask yourself exactly why you are outsourcing. It is because you want to reduce your costs, access specialized skills or as a risk management exercise?
Management versus Leadership
As people read the new authorized Steve Jobs biography, they are realizing that although he was one of the greatest thinkers of our time, he seemed to lack “management skills”. This brought up an interesting management debate about which is more important for the success of a company: management or leadership. What is Management? Management is the art and science of controlling people, processes and technology to deliver maximum value through the prism of corporate values and beliefs. What is Leadership?
Research shows that Nice Guys DO Finish Last
If you have read any self-help books, you have undoubtedly read the adage “Nice guys finish last”. Now research from Notre Dame and Cornell Universities show how being too agreeable negatively impacts your earnings. More recent research from Stanford, Northwestern and Carnegie Mellon) continued on the same path showing that people who are overly caring, for overs, generally tend to make bad leaders. In particular, being overly nice generally means that you will likely fail in 2 important leadership domains: prestige and dominance.
The Getting Things Done Workflow (GTD)
Life has a way of always getting more complicated so I am constantly searching for the next tool, technique or methodology that will make my life easier. A couple of years ago, I stumbled on David Allen’s Getting Things Done book and I knew I knew this was something special. I had gone through many other time management techniques from ABC prioritization to the Eisenhower method. Nothing else seemed to be as simple or powerful. I have also referred to it in previous posts here and here.
Prize Linked Savings - encouraging people to save
We all know people love to play the lottery. For only a couple of dollars, they can dream big dreams for a week. The sad truth is that many people choose to play the lottery instead of building a nest egg. After all, putting a money aside is good but it doesn’t carry the chance of winning big. Or does it? There is an interesting invention (in some parts of the world) called a Prize Linked Savings account. It allows people to save money while giving them the thrill of the lottery (all without risking a penny).
Don't argue when negotiating
I recently read an interesting article in Psychology Today about negotiation that I wanted to share with you. In the article, Art Markman presents findings from a study in the Journal of Personality and Social Psychology that analyzed the role of persuasion in negotiations. For example, if you are interested in buying a house, the seller might ask for $350,000, arguing that the house was newly renovated and is near good schools. Maaravi, Gonzach, and Pazy argued that when people hear an argument in favor of the initial offer, they think of counter-arguments.
DEALING WITH CHINA (PART 3)
The importance of “Saving Face” Having spent many years in Asia, I quickly learned the importance of maintaining “face” when dealing with Asian businessmen. This becomes important when engaging in negotiations (for example). You must always allow the other participant to have a little wiggle room [even after submitting their best offer]. Even tough the new offer may be only minimally better, it should allow the Chinese participant (whether customer, partner or other) to have the final say and maintain face.
DEALING WITH CHINA (PART 2)
... continuation Intellectual Property The previous paragraph highlighted the difference between laws “on the books” and the extent to which business people are willing to bend them for profit. As a foreign company entering into the Chinese market, you should be thinking about how you will protect your Intellectual Property. A common example of this is that of Will-Burt. Will-Burt is a company that manufactures and sells Night-Scan telescoping masts for police or military use. They entered the Chinese market and sales boomed.
How human needs influence motivation
Human needs psychology teaches us that all human motivation can be explained by the need to meet one or more of these primary needs: Certainty Variety Significance Connection and love Growth Contribution Anytime you are in an interpersonal relationship whether to close a sale or coach an employee, it is important to understand which of the needs (one or many) are motivating the other person. Each need is met differently so take the time to think about it. Simple concept but very powerful.
Dealing with China (part 1)
If you have spend any time at a multinational company, the one topic that comes up is how to benefit from the rise of the dragon (aka China). Over the next couple of entries, I will provide some information about China that I hope you will find useful. The socialist impact Although it is easy to overlook China’s socialist political system, it is important to understand that it influences every aspect of their business style. As an example, they have very little creditor protection.