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7 Tips For Starting A New Business Overseas

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Archives, Global Site Selection, Global Trade Daily, Special Reports

7 Tips For Starting A New Business Overseas

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Moving abroad has been the dream of many people. Instead of traveling for a vacation, you can move to another country and establish your life there. Setting up a business is one of the best ways to settle abroad. But what are the odds that your business will succeed? That is the worry for most people who intend to start a business abroad.

This article aims to give you hope and remind you that it is still possible to do business overseas. Once you are set, you can travel to any country that you dream of living in and start your establishment. All you need is a market for your products and comply with the local government regulations. On top of that, be aware that sometimes you may be far from your establishment or home if you do not intend to move permanently.

These seven tips should help you to successfully run any business of your dream in a foreign country.

Pick Your Ideal Destination:

Before you can travel and start your trade overseas, you must be specific about the place you want to settle. Many factors will determine your destination. The climate of the region can so much affect how you cope with the transition. For instance, if you come from the tropical regions, moving to the colder regions might be a harsh encounter, and you will take time to adapt.

You would also want to research the economic and political stability before you move your investment there. You cannot put up your business in a place where you cannot sleep peacefully or are not sure if the product value will fall and lose your investment.

Learn the Local Language and Culture:

When entering into business, you should expect to interact with the local community. People are always skeptical when it comes to new businesses. They want to learn your business model, treat them, and your attitude toward their way of life. As you must be aware, nobody wants to give up on their culture.

Therefore, your business idea should not cross the customs of the people in the country you want to settle. Learning the local language makes it easy to blend with people and understand each other – improving your services to the consumers. However, the language will come in slowly when you finally settle.

Evaluate the Market:

Market research is essential when starting up a business abroad. What do people like? How specific are they when they buy their products? What pulls them to other brands? In your research, you need to understand two things. First, you should know who your ideal customer is and what they want. You also want to learn some things about your competitors.

How has the product you intend to launch been doing in the past – or anything similar? Knowing other traders’ performance in your industry will help you understand the growth potential of any new investment in the region. If your competitors have had some growth, you can invest in the industry and acquire customers.

Legalize Your Operation:

Each country on the planet has its laws regarding business operations. You should, as a fundamental step, register your company abroad when starting. Later on, you will want to register trademarks as well for your convenience. Inquire about business registration and licensing requirements, because in some regions, they are offered separately.

For small businesses and operations like retail and supermarkets, you may only need a local business license to operate. However, if you are into manufacturing, assembly, and supplies, you will need to register a company. You can consult an attorney about the process or visit a registered company formation agent to complete the registration process.

Expand Your Network:

Connections matter a lot in every aspect of our lives. In business, we need to engage with people who know the surroundings and the requirements we need to fulfill to ensure that we run our ventures smoothly. When you plan to move abroad, you should get in touch with businesses and people who can help you start.

Relationships also create lasting trust between you and your network. The network you have can support you in many ways through your business and provide any assistance you may need during challenging moments. It would help if you did not ignore your competitors as they are vital for the growth of your business.

Start with Freelancers:

Managing employees might be another issue people worry about when thinking of setting up a business overseas. How will you compensate your workers? What terms do you need in a foreign land? What about taxes and insurance? All these things might consume your time, money, and brains.

Managing employees has never been easy, and it is not going to be any time soon. As a startup, you should think of ways to run your business without formal workers at your premises. The initial stages of a business setup may not need workforce until you establish a customer base. Therefore, you are better off paying freelancers for the available tasks and pay them hourly or on daily wage agreements.

Set Up a Website:

We are in the 21st century when digital marketing matters in all business sectors. As a startup, you want to reach more prospects both locally and through the states and beyond boundaries. Various marketing channels are essential, but you need to reach more customers online through social media, content marketing, and PPC. It would help if you did not forget about SEO and the long-term customer flow.

However, all forms of digital marketing have something in common. Consumers interested in your ventures need to click on a link or button to read more about your business and products. You must, therefore, have a website for people to learn more and interact with your brand. Ensure that you have your contact information on the site, and make it easy to access mobile devices.

In Summing Up

Moving abroad to start a business is an awesome idea. Therefore, you should make sure that everything you will be doing is compliant with the local authority laws and consumer expectations to sustain growth. Research is essential, and preparation in every aspect is mandatory. Give no room to chances, but exploit every opportunity to grow.

world
Archives, Global Trade Daily, News, Special Reports

Team Leadership in the COVID-19 World

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In 1933, when FDR delivered his first inaugural address, U.S. unemployment stood at 25%, and 7,000 banks had folded in three years. Even as he cautioned his fellow Americans that “the only thing we have to fear is fear itself,” he also conceded that “only a foolish optimist can deny the dark realities of the moment.” The realities of that moment still appear at this instant to be grimmer than those of the current one. Yet with a staggering 26 Million American filing for unemployment over the last five weeks, it’s challenging to dismiss projections of jobless rates reaching or even eclipsing the Depression-era peak that confronted FDR on that very first day of his presidency.

Today’s Americans may not emerge from the coronavirus siege embracing anything approaching the extreme of those directly impacted by the Great Depression, and no reduction in federal responsibilities in the current situation is likely to take the country back to pre-New Deal mode. However, it would be unwise to assume that the severe jolt to our sense of physical as well as material well-being inflicted by this crisis will leave no mark on our human behaviors going forward.

Obvious ones that may never return include handshaking (a tradition long gone in Japan), full-service toll booths, buffets, and sadly free samples at Costco. However, as we dig deeper into the business world, there are less obvious ones that can transition into new ways of doing business. This article seeks to highlight letting go of the past and what to look for in the new COVID-19 World.

We have often heard two widely accepted quotes that seem to contradict each other. The first describes a stonecutter who strikes the rock 100 times with no result. However, on the 101st blow, he sees the rock split. In short, it was not the 101st blow alone that split the stone, but the 100 that went before reinforcing the message of persistence and “staying the course.”

However, the second quote is that the definition of insanity is continuing to do the same thing again and again and expecting different results. The message here is if what you are doing is not working, change what you are doing.

In this COVID-19 World, the question the entrepreneur faces is when to persist and when to change course. The answer depends on the circumstances. To be successful in business in today’s world or any other endeavor, you must be willing to persist when times are tough.

Like the stonecutter, you must be willing to continue working hard through patches where there are no visible results. At the same time, success also requires that you be ready to change course when the current path is not getting you where you want to go, especially during a pandemic. Pivoting now and reinventing yourself may help you thrive later.

Depending on the type of business, we see shifts and pivots in commercialization strategies to help organizations recapture, maintain, and ultimately grow revenue. Obvious ones include storefronts to Direct to Consumer or “you come to us” vs. “we come to you,” adding guaranteed supply of hard to get essentials into unique offerings. Less visible but impactful pivots for CFOs include choosing profitability overgrowth. Government Subsidies, forgivable loans, and grants are the preferred option during these times vs. dilutive funding, and traditional bank business loans or lines of credit.

Looking inside and redefining, your organization should include using this crisis to define a new mission. Instead of ducking from the crisis, refine your company, and embrace it. Externally getting to know your clients better and looking at your client’s challenges from an outside perspective is essential. From a business development standpoint, look ahead at tomorrow’s needs. Ask the question: “What’s my unique selling proposition, and what should it be?” This will allow your organization to pivot and redefine itself appropriately.

Most importantly, believe in your business! See the light at the end of the tunnel. The changes you make to your business model will eventually add to the bottom line and improve profitability. When you believe your business can make it now, you will be a stronger, more resilient, less vulnerable company for the future.

_________________________________________________________________

By Frank Orlowski, Founder and President Ation Advisory Group| frank@ationadvisory.com | New York, NY USA

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Archives, Global Trade Daily, Special Reports

The Future of Trade Shows in a Post-COVID-19 Fashion Industry

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The fashion sector woke up recently to yet another trade show cancellation – the newly launched footwear show Sole, due to take place in August after its February success, announced that the decision had been taken to cancel for now, with 2021 dates to be announced soon. And today, Hyve Fashion has announced that their upcoming events Pure, Pure Origin, Scoop and Jacket Required will also be cancelled until next year. They’re just another in a long line of cancelled shows this Summer, including Premium Berlin, Modefabriek, Tranoï and Scoop International to name but a few.

There are some, perhaps more optimistic platforms, which have simply postponed their dates to later in the year, but there is a real sense in the industry that things might not go back to the way they were before. There is a universal feeling of uncertainty – lockdown restrictions are being eased, but with mixed messages from governments throughout the world, the idea of visiting exhibition centres packed with thousands of people from all corners of the globe is less than appealing for many.

TradeGala works with thousands of small boutique owners and, of those that we surveyed, 66% responded that they had no plans to attend a trade show for the rest of 2020. But if the very foundation of the industry is under threat, what will fashion buying and selling look like in a post-COVID-19 world?

In the short term, some of the major players are experimenting with technology and virtual reality to continue reaching their target audience. Shanghai Fashion Week was first to take the step into the unknown, holding their first fully digital event in April, while London’s famous Fashion Week followed suit with a virtual showcase in June.

Experimentation was the order of the day, with everything from live-streamed, green-screen catwalk shows to 3D virtual reality design galleries. Despite some detractors who found the new format somewhat lacking, and a few technological glitches throughout, both events were considered a success, and Paris is planning to host their first virtual events in July. Independent trade shows are also dipping into the digital world with Modefabriek launching an online B2B marketplace in July to showcase the collections from their cancelled event, while collaborations are emerging with Coterie, Magic and Project to launch “digital tradeshows” in August and September.

But won’t things all just go back to normal eventually? If we’re honest, do we really want to go back to the way things were before? Perhaps it’s about time we embrace the ways that technology can enhance our analogue experience. Why should brands and buyers be obliged to travel internationally (investing stretched budgets and increasing the fashion industry’s already heavy burden on our carbon footprint) when we have the option to reach out and connect via the web? London Fashion Week is already planning their next event in September as a virtual/real-life hybrid (lockdown restrictions permitting) and looks to continue this trend indefinitely – perhaps this is the future of trade shows as we know them?

At the end of the day, we’re tactile creatures, and there’s nothing quite like being able to see and feel a satin dress or leather handbag when considering our next season’s stock. But as bulk forward-ordering is no longer the only option (and a risk many buyers no longer wish to take), retailers will still have the option to attend one or two shows a year to source new brands or trends while supplementing their stock more regularly with suppliers online. This is where TradeGala can make a difference.

A year-round “virtual tradeshow,” TradeGala showcases brands throughout the world offering short-order stock for instant purchase. A user-friendly platform, it allows buyers to respond quickly to the changing trends and offer their customers what they really want to buy, rather than speculating months in advance.

One day soon, we hope, we will be able to attend our favorite trade shows as we did before – sourcing, networking, finding inspiration. Our Trade Show Calendar is regularly updated with upcoming shows throughout the world (both virtual and physical) and you can subscribe for the latest updates, so you won’t miss a date! But the future has come more quickly than we expected – is your fashion business ready to embrace the digital revolution?

Knowledge management
Archives, Executive Education, Global Trade Daily

The Design and Implementation of Effective Knowledge Management System in Multinational Corporations

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Executives agree with Doyle McCarthy, who sees society as a product of knowledge. [1] Defining culture as various forms of knowledge and symbols that make up an organization’s culture. However, knowledge is a by-product of culture and knowledge’s role in guiding and facilitating people’s action is key to executive decision-making.

Knowledge also creates values, thereby fulfilling the strategic functions of “producing and guiding social action, of integrating social organizations, of protecting the identity of individuals and groups, of legitimatizing both actions and authorities, and of serving as an ideology for individuals, groups, classes, and entire nations”. [2] In addition, Thomas Beckman explains that knowledge management is “the formalization of and access to experience, knowledge and expertise that create new capabilities, enable superior performance, encourages innovation and enhances customer value,” [3]  and Bernard Marr and his colleagues define knowledge management as a set of activities and processes aimed at creating value through generating and applying intellectual capital.

[4] Moreover, knowledge management has also been regarded as a “conscious strategy of getting the right knowledge to the right people at the right time and helping people share and put information into action in ways that strive to improve organizational performance”. [5] Executives direct practices that create value from intangible organizational resources. For executives, it is clear that the objective of managing knowledge is to add value to organizations. The focus here is that executives consider the fact a firm’s knowledge is positively associated with its outcomes. This article portrays a more detailed picture of the effects of leadership and organizational factors on knowledge management performance that have been mentioned but not placed in a model in the past. Executives can use the model proposed in this article to improve knowledge management performance in companies.

What Can Executives Take From Previous Academic Research?

Executives that manage knowledge and use it as an important driving force for business success find their organization to be more competitive and on the cutting edge. However, knowledge management implementation in organizations is determined by a set of critical success factors, one of which is the strategic dimension of leadership. For now, executives can develop conducive organizational climates that foster collaboration and organizational learning in which knowledge, as a driver of improved performance, is shared and exploited. Academicians point out that if leaders do not adequately support knowledge dissemination and creation through various mechanisms such as rewards or recognition for employees who create new ideas or share their knowledge with others, knowledge management cannot be successful.

Furthermore, it is safe to say that knowledge management effectiveness can be enhanced today with the use of information technology. Information technology can play a critical role in the success of knowledge management.

For instance, a scholar in Universiti Teknologi Malaysia (UTM) by the name of Kuan Yew Wong highlights the importance of information technology in facilitating knowledge flow and communication. [6] Ying-Jung Yeh and his colleagues at the National Taiwan University of Science and Technology and National Chung Cheng University indicate that the effectiveness of knowledge management implementation is positively associated with using information technology and setting up useful software and systems to enhance strategic decision-making. [7] Effective leaders can, therefore, develop information technology through employing IT professionals and allocating more budgetary resources to share and utilize knowledge within organizations.

Moreover, it is clear that executives around the globe realize that they play a critical role to achieve the best climate and for implementing knowledge management that creates learning and growing the organization. Engaging followers and getting them to participate in leadership activities is an important part of knowledge management practices. Scholars subsequently suggest that success is also dependent upon how executives formulated their organization’s mission, vision, and strategy.

The key is for executives to inculcate an effective strategy, culture and structure so that information can be found and used instantaneously. The fact that executives steer the strategic direction of organizations is indicative of empowering people and making them more responsive to the constant changes in technology, economic fluctuations, and other pertinent and vita changes that occur on a day-to-day basis.

Executives Are Now Introduced to the Proposed Model

Based on an integrated framework of the above ideas and scholarly research, I depict and applicable and reliable model for executives as Figure 1. This framework of the model highlights a relationship between knowledge management, leadership, strategy, culture, structure and information technology. I show the relationships in Figure 1. In Figure 1, leadership has a positive impact on knowledge management which leads to higher knowledge management performance. And finally, better strategy, better culture, better structure and better information technology lead to better  performance.

In Conclusion

This article blends scholarly concepts with real world application and investigates how scholarly research can be applied in the organizational boardroom. Also, scholars see that I expand upon the subject matter of organizational factors. Through introducing a more comprehensive model for implementation, I add to the current and extant literature. In particular, I suggest that if these factors are not completely in favor of supporting knowledge management, organizations cannot effectively implement knowledge management projects and may become obsolete, taken over, or acquired.

__________________________________________________________________

Mostafa Sayyadi works with senior business leaders to effectively develop innovation in companies and helps companies—from start-ups to the Fortune 100—succeed by improving the effectiveness of their leaders. He is a business book author and a long-time contributor to business publications and his work has been featured in top-flight business publications.

References

[1] McCarthy, E.D. (1996). Knowledge as Culture: The New Sociology of Knowledge, New York: Routledge.

[2] Strasser, H., & Kleiner, M. (1998).  Knowledge as Culture: The New Sociology of Knowledge, European Sociological Review, 14(3), 315-318.

[3] Beckman, T.J. (1999). The Current State of Knowledge Management. In J. Liebowitz, (Eds.), Knowledge Management Handbook, New York: CRC Press.

[4] Marr, B., Gupta, O., Roos, G., & Pike, S. (2003). Intellectual Capital and Knowledge Management Effectiveness. Management Decision, 41(8), 771-781.

[5] O’Dell C., & Grayson C.J. (1998). If only we knew what we know: identification and transfer of international best practices, New York: Free Press.

[6] Wong, K.Y. (2005). Critical Success Factors for Implementing Knowledge Management in Small and Medium Enterprises. Industrial Management & Data Systems, 105(3), 261-279.

[7] Yeh, Y.J., Lai, S.Q., & Ho, C.T. (2006). Knowledge management enabler: a case study. Industrial Management & Data Systems, 106(6), 793-810.

HR tech
Archives, Global Trade Daily, Special Reports

The Real Digital Transformation In HR Tech: How Global Leaders Can Manage

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All executives across the globe should embrace HR technology to represent a complete answer to the need for innovation and continuous learning in today’s global market environment. In doing this, first executives must have an understanding of the concept of knowledge in companies. To analyze knowledge in organizations, there is an important taxonomy of organizational knowledge that needs to be discussed. The following section addresses this taxonomy in depth to set the record straight upon the importance of HR Technology.

Human, Social, and Structured Knowledge

Two prominent scholars that are well known in the Academy of Management, one of the largest leadership and management organizations in the world by the names of David De Long and Liam Fahey argue that knowledge can also be classified using individual, social, and structured dimensions. Executives can categorize followers based on their human knowledge which focuses on individual knowledge and manifests itself in an individual’s competencies and skills. This type of knowledge includes both tacit and explicit knowledge. David De Long and Liam Fahey suggest that this form of knowledge comprises the skills gained by individual experiences, and learned as rules and instructions formulated by executives for followers to use as a guide.

Social knowledge, on the other hand, is categorized as tacit knowledge that is shared so that it can become collective knowledge. Executives can use structured knowledge that emerges informal language from annual reports, memos, and other means of communication to be represented as statements, and is considered explicit knowledge. Therefore, consultants can classify knowledge in this way so that it emerges at three levels—-individual (i.e. human), group (i.e. social) and organizational (i.e. structured).

Executives can implement HR technology to create conducive organizational climates that foster organizational learning in which individual knowledge is shared and utilized. Unshared individual knowledge is like lettuce in the refrigerator—if shared, everyone enjoys it, if not, it could not have any use. In the next section, I present a factor that executives have embraced—–HR technology.   

Managing Knowledge and Innovation through HR Technology

HR technology is an internal resource that increasingly facilitates HR business processes and improves the search for information and knowledge around the company. For example, HRIS (Human Resource Information System) software enables companies to overcome space constraints in communications and promotes the depth and range of knowledge access. HRIS software can be also employed to enhance the conversations and knowledge exchanges between organizational members. Three prominent scholars in the University of North Carolina at Chapel Hill by the names of Andrew Gold, Arvind Malhotra and Albert Segars argue that this knowledge shared through technology could positively contribute to knowledge integration. Executives can apply HRIS software to develop and disseminate information throughout the company which can improve the search for information in order to adapt to today’s uncertain business environment.

HCM (Human Capital Management) software is an important resource for strategic planning for knowledge integration. Robert Grant highlights knowledge integration as a major reason for the existence of a company. This software enhances learning and sharing information by providing access to accurate information and knowledge. HCM software also stimulates new knowledge generation, through transferring knowledge to other members and departments. Knowledge sharing itself can in turn develop more innovative climates and facilitate knowledge creation in organizations. HCM software can, therefore, play a crucial role in improving knowledge creation and transference. Executives can use HCM software to develop an effective learning culture that disseminates knowledge around the company.

HRMS (Human Resource Management System) software can be also used by executives to facilitate of the knowledge creation process through providing the essential infrastructures to store and retrieve organizational knowledge. HRMS software encourages executives to embark on technological facilities to provide new and possible solutions for solving organizational problems and transferring individuals’ knowledge to other members and departments and improving knowledge capturing, storing, and accumulating to achieve organizational goals.

In Conclusion

This article advances the current literature on HR technology and knowledge management by offering novel insights into how better HR technology leads to better knowledge management. Executives can apply HR technology in their decision-making processes in order to investigate various alternatives and options.

Success in today’s global business environment can be more effective when HR technology is effectively applied and widely used to achieve a higher degree of competitiveness. Importantly, knowledge management performance at all levels of the company is positively associated with using HR technology and setting up useful software and systems to enhance strategic decision-making. Executives can implement HR technology by employing IT professionals and allocating more budgetary resources to share and utilize knowledge within companies.

_______________________________________________________________

References

Gold, A.H., Malhotra, A. and Segars, A.H. 2001. Knowledge management: An organizational capabilities perspective. Journal of Management Information Systems, 18(1), 185-214.

Grant, R.M. 1996. Toward a knowledge-based theory of the firm. Strategic Management Journal, 17(S2), 109-122.

Long, D.W.D., & Fahey, L. (2000). Diagnosing cultural barriers to knowledge management. The Academy of Management Executive, 14(4), 113-127.

Successful Entrepreneurs
Archives, Global Trade Daily, Special Reports

10 Traits of Successful Entrepreneurs

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Many aspiring entrepreneurs see business ownership as an avenue to quick riches, a path to becoming “that boss” and creating jobs for the less fortunate, as a ticket to the freedom of working how and when they feel like; as they please! But owning a business is not that easy and convenient. If it was, everyone would succeed at it. The truth is that entrepreneurship can be your ticket to wealth, but it definitely is not your ticket to freedom. If anything, it calls for you to work harder than you ever did before, take huge risks, and fail at so many things without giving up. That is the entrepreneurial spirit.

There are many traits that define successful entrepreneurs. Here are 10 of those:

1. They network

Regardless of the niche they are in, or the success they’ve achieved already, successful entrepreneurs never stop networking. They work with influencers on social media, reach out to potential investors via emails, and generate leads by all means necessary. You will find seasoned entrepreneurs networking with freelancers in a coworking space in Chicago or using a shared workspace to get inspiration for business ideas from likeminded individuals. They regularly host events that create an engaging, exciting, and inspirational platform for their employees, clients, and other stakeholders to exchange ideas and challenge the status quo. That helps them to grow and compete more effectively.

2. They are disciplined

Successful entrepreneurs have clear goals and timelines, and data-inspired tactics to accomplish them. They are always ready to cut out anything that weighs them down in order to only focus on things that make their businesses work. They are disciplined enough not to deviate from that path.

3. They are passionate and motivated

They know the problem they want to solve within their niche, and their main motivation is passion; not money. They derive joy in seeing their target clients happy and satisfied. They wake up every morning eager to learn new things; to perfect their skill in order to change the world in a positive way.

4. They are creative

You need a unique, original business idea in order to cut a niche for yourself within a crowded marketplace. And because your fresh idea will always be challenged by newer ideas every single day, you must constantly figure out ways of doing everything better than it’s been done elsewhere. If you wish to remain at the top, you have to challenge the status quo and think outside the box even when you feel like you have the best ideas and strategies. That is why you need to be creative.

5. They are flexible

Flexibility helps entrepreneurs to adjust fast whenever things don’t go as planned, or when new and better opportunities present themselves. Successful entrepreneurs are quick to acknowledge a good idea even when it comes from a competitor. They are always open to their ideas being challenged, and they change tact as soon as they realize things aren’t working as they should.

6. They are persuasive

Entrepreneurs negotiate with stakeholders all the time. You have to persuade the best talents to work for you, clients to trust in your services and/or products, potential investors to buy into your ideas, and your employees to help you actualize your vision. That is why you need to be a persuasive person.

7. They work hard

Entrepreneurs have to work harder than their employees in order to set a good example, and for the fact that they own the vision of their establishments. As much as you can hire department heads to help you manage your business, you must be willing to be the overall supervisor in order to ensure that everything is done as per your directives. Sometimes you will have to work overtime and through weekends in order to catch up with all departments.

8. They are decisive

Entrepreneurs are constantly faced with questions and dilemmas that can make or break their business. Being decisive helps them to make sound judgment under immense pressure.

9. They are futuristic

Future-oriented entrepreneurs know exactly how they want the future of their business to be. They have a plan. They set their goals around a strong vision. They know how to read market trends and predict how those trends will affect their strategies in future.

10. They take risks

You cannot be successful if you aren’t willing to take risks. New marketing strategies, new technologies, and new investment opportunities are all risks that can make or break your business. Some risks are harmful, others are beneficial. To succeed as an entrepreneur, you must know how to distinguish between those two types of risks, when to take the beneficial risks, and how to create a plan B in case plan A backfires.

Conclusion

Entrepreneurship is an art that you have to master. Some of the qualities discussed above are inborn, others have to be developed.  But even as much as some of them come naturally to you, you must identify and perfect them if you are to be the best.

diversity
Archives, Global Trade Daily, International Trade

Diversity Makes Firms More Productive

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This article raises a vital question as to how executives can successfully improve financial performance at all levels of the organization and might be the answer executives need but may also lack the fundamental fortitude necessary to be an all-encompassing model to predict financial performance. This article has started a mindset that encourages executives to investigate scholarly work to increase financial performance, enhance profitability and sales, and improve shareholder value. A new managerial approach may be necessary as the new business environment demands are increasingly difficult to adapt and sustain profitability.

Drawing from the existing literature, this article suggests new insights to identify workplace diversity as a primary driver of sales, profitability and financial performance for companies. Executives will see that improving financial performance and sales requires developing diversity and inclusion within organizations—not only at the higher echelons of the organization but at every level.

The global markets represent require top management executives who can adapt to various environments successfully. Executives can contribute to meet dynamic market needs, through adopting a diversity and inclusion strategy to meet the needs of customers in the marketplace. This article presents executives with diversity and inclusion strategies to improve financial performance and become more profitable. Executives can see that I expand upon the subject matter of a diversity and inclusion strategy.

Insufficient consideration of the impacts of this significant contributor on financial performance has been exposed and I attempt to address this concern for the first time. Hence, this article can portray a more detailed picture of the effects of diversity and inclusion strategy on financial performance that have been not mentioned in the past. Furthermore, the focus of this article is based upon the critical role of corporate leadership which allows a rich basis to understanding the mechanisms by which diversity in the workplace and financial performance are significantly influenced.

The critical and unanswered question is: How can corporate leaders improve financial performance? There are many academic studies that focus on the organizational and managerial factors that drive sales, profitability and financial performance. Diversity and inclusion in the workplace is one such area that plays a critical role and is a strategic prerequisite for business success in today’s hypercompetitive global environment. In particular, a diversity and inclusion strategy can help companies to improve financial performance in terms of achieving commercial goals and the quality of products and services. This is the reason that this strategy is so popular among practicing managers today.

The ultimate business outcome is financial success which narrows the gap between success and failure and this can be achieved by the commitment of its members and facilitated by an executive acting as a facilitative-leader. In doing this, corporate leaders need to focus on the critical human assets such as commitment and thus help followers to effectively implement organizational changes with both efficiency and effectiveness. They can shed light on the strategic role of follower attitudes and values to accomplish a higher degree of effectiveness, and highlight the importance of employees in implementing changes at the organizational level.

When corporate leaders show concern for the employee’s individual needs, individuals begin to contribute more commitment and they become more inspired them to put extra effort into their work. This extra effort improves the quality of products, customer satisfaction, and impacts the return on assets, sales, shareholder value, and finally improves financial success and operational risk management.

Financial success mentioned above can be only achieved by a diversity and inclusion strategy. Follower’s diversity of skills and interpersonal relations that is based on trust and reciprocity can improve innovation and the performance of group cohesiveness. At this point, you’re probably asking why the diversity of skills is so important. The simple answer is that companies that may lack diversity in the workplace cannot share their knowledge. With an effective diversity and inclusion strategy, global leaders may improve knowledge sharing and learning that can eventually enhance financial performance in global markets through empowering human resources and enabling change at the organizational level.

Executives can increase workplace diversity to facilitate knowledge sharing and build relationships, aiming at improving customer satisfaction through acquiring additional knowledge from customers, developing better relationships with them, and providing a higher quality of service and/or products for them. Furthermore, creating an expert group or steering committee may be shortsighted because such groups may not have sufficient diversity to comprehend knowledge acquired from external sources.

Leadership in some companies has failed to pay attention to this important matter and create a team that makes diversity a priority and represents a variety of ideas and perspectives. A leadership status that is not only a failing platform but one that represents destruction as opposed to innovation and expansion. This leadership gap can provide lessons for CEOs and executives in today’s organizational challenges. The fact remains that leaders that manage diversity and use it as an important driving force for financial success find their companies to be more competitive and on the cutting edge.

In conclusion, the question posited for top management executives and leaders in any and all companies is to accept the challenge of diversity and inclusion strategy implementation in order to address the current gaps in business effectiveness and improve their financial performance and competitiveness in global markets. Thus, I suggest that executives embrace a diversity and inclusion strategy. I attempt to blend scholarly concepts with real world application through thoroughly looking at an effective strategy for maximizing financial performance.

Based on this article, executives can now see that they must be aware that their diversity in the workplace can fundamentally affect the way a corporation performs its functions and can make a fundamental change in the processes by which a company achieves commercial objectives, improves sales and profitability and also increases financial performance. Thus, financial performance is dependent upon how executives formulate their diversity and inclusion strategy. And business success for companies in today’s global business environment can be better achieved when a diversity and inclusion strategy is effectively applied and widely used to achieve a higher degree of effectiveness and financial performance.

Therefore, when companies can have a very diverse employee population, they will secure a foothold in the ever-expansive global business environments.

________________________________________________________

Mostafa Sayyadi works with senior business leaders to effectively develop innovation in companies and helps companies—from start-ups to the Fortune 100—succeed by improving the effectiveness of their leaders. He is a business book author and a long-time contributor to business publications and his work has been featured in top-flight business publications.

global mobility
Archives, Global Logistics, Global Trade Daily

How to Coordinate Global Mobility Efforts

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Knowing what global mobility is and why it should matter to a modern business is the first step in developing or reshaping a business strategy. Once that is clear, an ambitious and perceptive business owner or a decision-maker should focus the resources and efforts on expansion. But how does one coordinate global mobility efforts successfully?

Global Mobility and What you Need to know About it

Global mobility represents a company’s ability to move its employees to offices around the world. It assures that the best people for the function are given the job, regardless of the location they come from or are going to. So, a company first needs to bust the myths of outsourcing to navigate global mobility with ease. Then, it should take into account all the factors and run all the scenarios regarding employee relocation. If it sounds like a lot of work, it is precisely because it requires a lot of effort. A well-coordinated team effort, in fact.

The upside is that global mobility, at its finest, grants numerous long-term benefits to a business. Exposure to cultural differences enhances the workforce and develops a fresh perspective. It doesn’t just prepare the ground for innovative business operations. At the same time, it offers multiple opportunities for career development. A good worker is a happy worker, but the best worker is the one allowed to grow.

Factors Affecting Global Mobility

In the face of the ever-changing global market conditions, companies are under pressure to attract and keep employees. Hence, to endure and learn from challenges that impose themselves in the age of global commerce, a company needs a workforce that is diverse and, thus, with multiple or different skills.

A business that is expanding to a market in another country will be influenced by the specific country, market, and industry-related factors. If we refer to these factors as external, the internal factors affecting the expansion strategy are related to employees. Hence, it is vital for a company to also:

-find the right people for the function

-create a quickly-operating and compliant employment system

-know how to manage labor effectively and provide support

-plan and set up the right structure for continuous growth

In essence, to assure a fruitful expansion to a foreign market or attract and keep foreign workers, a company needs to take into account both external and internal factors. Only in such, carefully planned environment, coordinating global mobility makes sense.

Coordinating Aspects of Mobility Strategy

To attain true global mobility, a company needs to develop a unique strategy and involve key players in its development. While the strategy should focus on important features of employee distribution, key players are people in the company’s global mobility strategy development and consulting team.

A process of employee deployment is not a job for one person or even one department. It requires coordinated interdepartmental efforts. The global mobility management team must take into account the payroll and tax, relocation logistics and immigration, cultural adjustment, and accounting factors.

Accounting

Careful accounting starts with determining which departments must be involved in the global mobility strategy. It is also vital for monitoring, analysis, and evaluation of previous and current international assignments. Creating and maintaining a database is pivotal. It leads to the creation of indicators necessary to assess the effectiveness of a company’s global mobility efforts.

Immigration Prerequisites

Work permits, visas, and residence permits should be secured on time to assure a smooth employee transition. If a company doesn’t have previous experience in global mobility, it is recommended to research and get well-acquainted with both the host country and home country procedures and requirements. This is highly important as any violations in regards to visas and permits will limit the global mobility of the company in the future.

Relocation Logistics

It is not only that the company should ensure safe and secure relocation for employees but also devise a plan for repatriation at the end of their assignment. Often, employees who relocate for the assignment relocate with their families. The company must help the whole family settle, caring for their needs, and do what they can to reduce transportation costs if possible. Helping the employee adjust to the new surroundings includes efforts in educating the employee on local customs. An inability to cope with culture shock doesn’t have to be a reason for unsuccessful international assignments.

Employment Legislation

Before embarking on a global mobility mission, a company needs to assess both home and host country employment legislation and regulations. A business needs legal advisors to determine the legality of employment agreements in foreign countries and create adequate work contracts, provide assurance letters, and fulfill all legal requirements.

Tax Considerations

Tax arrangements are usually considered during the strategy development phase. A company will not move into a new market if tax regulations or incentives are not favorable. But if they are, it befalls the company’s legal advisors to ensure income tax compliance. The last thing an employee and the company want is to be taxed by both the host and home country. Moreover, according to the Tax Cuts and Jobs Act (TCJA), moving expenses deduction is suspended until January 1, 2026.

Compensation Plan

Smooth compensation processing is perhaps the most important concern from the perspective of an employee, but also one with the highest priority in coordinate global mobility strategies. A quality compensation plan involves not only the processing of salary. It should also ensure social security benefits, including health insurance and pension benefits. But this is not all. As mentioned before, in the case of family relocation, a compensation plan should consider housing and relocation package. It should involve compensation for the family travel expense and any home sale/purchase assistance.

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Martina Nowak is a moving consultant and a long-time writer for the Movage Moving NYC blog. She enjoys sharing her experience on a vast number of moving-related topics and, thus, making people’s residential and business relocations effortless and exciting.

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Archives, Features, Global Trade Daily

3 Guiding Principles for Digital Transformation Success

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Many companies have adopted digital technology to transform their business. But the transition can be a challenging process, and studies show that digital transformation projects often fail to reach company expectations.
This happens for a variety of reasons, says J. Eduardo Campos, co-founder with his wife, Erica, of Embedded-Knowledge Inc. (www.embedded-knowledge.com) and co-author with her of From Problem Solving to Solution Design: Turning Ideas into Actions.
“It’s often due to ineffective communication between the IT department and business teams,” Campos says. “But overall it really comes down to an inability to problem-solve and a tendency to lose sight of teamwork and the big-picture business plan.
“To have a successful digital transformation depends greatly on employees working together, but too many organizations are siloed, thus hampering the communication and creating obstacles in the process.”
Campos offers three ways company leaders can deal with problems in digital transformation:
Define the essential problem. Campos says digital transformational programs fail when company leaders don’t grasp the root of the problem they hope digital transformation will solve. “Beware of solving the symptoms instead of the problem,” Campos says. “To define the essential problem, you first need to step back, reflect, and clearly define what you are trying to address. Detaching yourself from a problem and trying to see it from a different perspective, you then will have a better view of how things interact with each other. There are often multiple layers to why a problem exists, so ask a series of whys that drill down to the answer.”
Design solutions. Once the problem is identified, setting goals and assessing options come next. ”It’s not unusual to find yourself in a situation where the problems you identified are part of a dynamic environment, affected by constant changes that require you to revisit your goals and options regularly,” Campos says. “This is where technology and software can be very helpful in making sure everything is being tracked appropriately without any information getting lost. in addition to technology, using risk management concepts can be a very effective way to help keep consistency throughout the solution design process.”
Engage stakeholders. Digital transformation often represents a massive change for personnel. Campos says it’s vital for the decision-makers to craft a stakeholder engagement plan that addresses all aspects of a recommended solution. “Clearly identify whom will be impacted by the solution, either positively or negatively, and how to handle stakeholder reactions,” Campos says. “You want them to be willing to commit to your recommendation because they indeed want it, not because you are selling it to them. And when you are influencing the decision-making process, be sure to show your stakeholders your appreciation of varying opinions.”
“Achieving success in digital transformation brings together people, process, and technology,” Campos says. “Many businesses never get far past the launch point of their digital transformation because that triad of people, process and technology isn’t in sync, and problems that could have been solved were not.”
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J. Eduardo Campos is co-author with his wife, Erica, of From Problem Solving to Solution Design: Turning Ideas into Actions. Campos spent 13 years at Microsoft, first as a cybersecurity advisor, then leading innovative projects at the highest levels of government in the U.S. and abroad.  His consulting firm, Embedded Knowledge Inc. (www.embedded-knowledge.com), works with organizations and entrepreneurs developing customized business strategies and forming partnerships focused on designing creative solutions to complex problems.
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Archives, Commentary, Global Trade Daily

Is Your Business’ Global Message Lost In Translation?

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American businesses with plans to take their products global know they will need to overcome language barriers, but that little chore could prove to be a greater challenge than they realize.

The potential for missteps abounds as companies attempt to translate websites, apps, user manuals, print advertisements, marketing emails, and other materials for a customer base that’s not their usual audience.

“It’s critical that companies be aware of not just how their products will be perceived, purchased, and used in other countries, but also that selling internationally requires tweaking business processes,” says Ian A. Henderson, author of Global Content Quest: In Search of Better Translations and co-founder with his wife, Francoise, of Rubric (www.rubric.com), a global language-service provider.

“Many products designed for and by Americans are in high demand in other countries, but that doesn’t mean the user experience will be exactly the same.”

Some translation complications that businesses encounter could easily be avoided, Rubric’s founders say. A few of those problematic situations include:

Creating poor user journeys. The Hendersons say they sometimes encounter clients who have a general idea of what the content should be in English, but have not thought about what it should be in other languages, or how to adjust it for different cultures. “Because of this,” Ian Henderson says, “people often end up translating for the sake of translating from some vague idea of necessity, rather than to intentionally grow the international market for their product in a strategic way. This leads to a poor user journey.” If you don’t put time and thought into what you are translating and why, he says, you may end up with inconsistency in content.

Using misapplied tools. Companies often look for software that will solve all their problems, and in many cases a multi-language feature is sold as part of a content-management system, or a product-information management system. “Unfortunately, it is often not very effective,” Francoise Henderson says. “Translation is more of an art than a science, and it is rarely as simple as plugging words into a program.” She recommends running a pilot program to test out new software before committing to buying it.

Adding translation to someone’s other responsibilities. Companies often make the mistake of assigning translation duties to someone already on staff simply because they speak the languages in question. “On the surface, that seems to make sense because the person knows your product and is already on your payroll,” Ian Henderson says. But the employee won’t make translation a priority because of competing responsibilities. When the employee does prioritize the translation, the rest of their work suffers. Also, just because they speak the language doesn’t mean they are competent writers who can successfully convey a message from one language to another.

Being stuck in silos. If departments within a company fail to communicate, information might be unintentionally translated multiple times, costing the company thousands in extra translation costs, Ian Henderson says. Other times, different departments will use different vendors to translate. So when put through translation, a product’s packaging claim might not correspond to the material that marketing or legal is sending out. One solution, the Hendersons say, is to have a central communications hub through which everything flows.

“One thing we’ve learned is translation is more than just a language problem,” Francoise Henderson says. “People and the products they buy vary from country to country. As a result, marketing can’t be too uniform because it won’t speak to all the audiences. But if it’s too individualized, you can lose your brand identity. The trick is creating a balance that both preserves the global brand and serves the local needs.”

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About Ian A. Henderson

Ian A. Henderson (www.rubric.com), author of Global Content Quest: In Search of Better Translations, is chief technology officer and co-founder of Rubric, a global language service provider. During the last 25 years, Henderson has partnered with Rubric customers to deliver relevant global content to their end users, enabling them to reap the rewards of globalization, benefit from agile workflows, and guarantee the integrity of their content. Prior to founding Rubric, Henderson worked as a software engineer for Siemens in Germany.

About Francoise Henderson

Francoise Henderson is chief executive officer and co-founder of Rubric, overseeing worldwide operations and Global Content strategy. Under her guidance, Rubric has generated agile KPI-driven globalization workflows for its clients, reducing time to market across multiple groups and increasing quality and ROI. Francoise has over 25 years’ experience in corporate management and translation.