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Did Your Employees Grow Apart In A Difficult 2020? 5 Tips For A Better Culture.

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Did Your Employees Grow Apart In A Difficult 2020? 5 Tips For A Better Culture.

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Given the uncertainty businesses face in 2021 as the COVID-19 pandemic continues, company leaders are looking at every phase of their operation to determine ways they can improve.

Company culture is one area commanding attention. As the virus caused business limitations and forced many companies to go fully remote in 2020, workplace culture was challenged in new ways. This was a reminder to company leaders to make this a priority, forcing them to find ways to strengthen it in the new year, says Mark McClain, CEO and co-founder of SailPoint and the ForbesBooks author of Joy and Success at Work: Building Organizations that Don’t Suck (the Life Out of People).

“More and more, companies are starting to understand that they need to show employees that they value them as whole people,” McClain says.

“If you respect them, value them and treat them as professionals, they will go through walls for you. If you don’t, if you create an environment where the very thought of coming to work creates anxiety, then they are going to look for employment elsewhere.”

Issues within the workplace culture can fester and eventually lead to toxic relationships, lower productivity, and higher turnover. McClain says that as companies try to balance remote working with a return to the office, it’s critical that culture problems be diagnosed and dealt with.

“But too often,” he says, “leaders don’t have the time to dig into the root problems or don’t know how to really reach their people and devise solutions.”

McClain offers these tips for management to build a better workplace culture in 2021:

Make the health and well-being of your employees the first priority. “Putting your employees first makes them far more likely to be good producers for your company,” McClain says. “With the ongoing pandemic and 2021 bringing much uncertainty, it’s the right time to review workplace safety, collect employees’ thoughts on working remotely vs. coming back to the office, look at internal communications, and analyze management practices to make sure you’re addressing employees’ needs and concerns. Circulate employee surveys to get helpful feedback.”

Hire people who are culture fits. “Some people are very capable, but they happen to be jerks,” McClain says. “No matter how smart such a person might be, the negatives will eventually outweigh the positives. At the same time, you don’t want to hire people who are really nice but not terribly competent.”

Beware of fake culture. Some companies create what McClain calls “pseudo cultures,” which he describes as “thinly veiled come-ons where companies offer massages, free beer or other perks to attract employees.” Eventually, people figure out that a cool employee lounge with a ping-pong table does not make for a successful company. “Real organizational cultures are reflections of how companies treat people and create useful products,” he says.

Increase employee engagement. McClain says leaders should go the extra steps to get to know their employees – a big help in keeping them engaged. “It can be tougher initially to spot people who are not fully engaged,” he says. “The gut feeling leaders need in that regard develops over time with the determination to know your people as individuals. Not all managers are willing to do that, and that’s a mistake. Showing genuine concern can uncover issues that can steer the employee to the help they need.”

Promote a work-life balance. “It’s nice to have ultra-motivated climbers, and it’s essential for a forward-moving company to demand a lot of its people,” McClain says. “But not at the expense of burning them out, messing up their health and hurting their family relationships. That’s going to hurt the company in the long run as well.”

“Nurturing your internal culture,” McClain says, “enables people and business to thrive. It’s never been more important than now after a year of chaos and with more uncertainty ahead.”

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Mark McClain (www.markmcclain.me), ForbesBooks author of Joy and Success at Work: Building Organizations that Don’t Suck (the Life Out of People), is CEO of SailPoint, a leader in the enterprise identity management market. McClain has led the company from its beginnings in 2005, when it started as a three-person team, to today where SailPoint has grown to more than 1,200 employees who serve customers in 35 countries.

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The WFH Vs. Return-To-Office Debate: What Employees, Bosses Should Consider

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Many Americans have been working from home full-time for a year now since COVID-19 hit the U.S. And many prefer that arrangement to a traditional office. In a survey, 65% said they want to work remotely full-time after the pandemic.

That could pose a problem for them and their employers.

Given the availability of vaccines, many companies are planning to ask their employees to return to the office. But a sizable number of workers might balk – or even walk. In a survey by LiveCareer, 29% of working professionals said they would quit if they couldn’t continue working remotely.

“The reality is that some jobs just don’t work remotely and some people don’t work well remotely,” says Cynthia Spraggs (www.virtira.com), a veteran of working remotely, author of How To Work From Home And Actually Get SH*T Done, and CEO of Virtira, a completely virtual company that helps other businesses work virtually. “Companies have time to plan for both – and so do employees.

“Many employees now expect to be able to work flexibly. Some companies will use a hybrid approach, and others will go back to full-time in the office. But if employees are not given the choice to work from home, some will look for other employers that do offer that. Companies need to assess which jobs are best done remotely and assess their employees to understand which ones benefit the company most by either working from home or returning to the office.”

Spraggs offers these thoughts for workers, business owners, and managers to consider in the WFH vs. return-to-office debate:

The WFH type. “At this point, it should be relatively easy to assess who is thriving and who is miserable in a WFH setting,” Spraggs says. “What we’ve found is, regardless if you’re an introvert or an extrovert, the perfect WFH employee is someone who embraces life and who has passions and interests outside of work. They work efficiently and are strong performers because they see work as a means to fund their life.”

The traditional office type. Spraggs draws a stark contrast between people who thrive working from home and those who are much happier commuting to a traditional brick-and-mortar office environment. “These individuals have strong social relationships through work and require the camaraderie that an in-office environment provides,” she says. “For many, especially those focused on the corner office, work is their life. These are the ones who pull down 80-hour weeks to move up the ladder. They stay glued to their boss, and likely are the ones who just won’t function well at home. Sadly, they are also likely your VP.”

Weigh how your company thinks of you. “Although we all like to think that companies care about employees,” Spraggs says, “the harsh reality is that employees are a unit of production and companies will migrate to the setup that senior executives mandate. Do you really want to work for a company that isn’t prepared to accommodate what makes you most productive and happy? Better sharpen that CV and get ready. Plan now and work your networks.”

Management realities. For many companies, even with the environmental, health, and productivity advantages that remote work brings, Spraggs thinks some simply aren’t going to embrace WFH as an opportunity to streamline operations. “They are going to want to return to the ‘old normal,’” she says. “A good number of senior management people didn’t do well with the WFH environment because they view WFH through a lens of slacking-off employees, lower productivity, and lower ROI. So it’s likely these companies are not going to make the investments in training, home-based bandwidth, VPNs, and tools to make it work.”

“There’s coming tension in many companies between what will work best for management and what will work best for the employees,” Spraggs says. “We may see a big migration in workers going to fully virtual companies.”

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Cynthia Spraggs (www.virtira.com) is the author of How To Work From Home And Actually Get SH*T Done: 50 Tips for Leaders and Professionals to Work Remotely and Outperform the Office. She is CEO of Virtira, a completely virtual company that focuses on remote team performance. Before taking leadership of the company in 2011, Spraggs worked with large consulting and tech companies while completing her MBA and research into telecommuting.

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How and Why Your Business Strategy Eats Your Business Culture for Breakfast

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Global leaders across the globe have found that corporate strategy is critical to business success. Corporate strategy could be the most important component of success in the ever-changing business environment of today.

Executives evaluate the success of corporate strategy. Corporate strategy reflects the degree to which a company can expand and determine the right pathway to success. The key function of a corporate strategy is to help executives utilize it for goal achievement. In this context, corporate strategy is becoming the forefront of success in corporations worldwide. Success, therefore, is dependent upon how executives formulated their organization’s strategy. Corporate strategy has been a focal point of the executive span of control but has not been associated with leadership enough to make it an integral part of organizational success.

One outcome of corporate strategy is to connect knowledge with other companies that want to share successes and failures. Leaders can inspire organizational members to network with more successful competitors by sharing successes to build alliances and not only enhance competition but communicate best practices as a way of keeping the highest standard of operation in the industry. In doing this, leaders implement a corporate strategy to develop relationships with external environments to identify new opportunities that occur in an ever-changing hypercompetitive marketplace. Leaders, in fact, implement a corporate strategy to expand the growth opportunities available to organizations that may be challenging, but, important to close the gap between success and failure. This leads to converting acquired knowledge into organizational processes and activities to improve or discontinue processes that contribute to success.

Furthermore, executives focus on individuals as the major source of knowledge and show how follower’s ties together so that they can affect the sharing, storage, transfer, and apply knowledge within organizations. Executives, therefore, see these connections, and the related shared knowledge and memory, as central to the effectiveness of corporate culture. Executives know that corporate strategy through sharing individual knowledge around the organizations can positively contribute to building a strong corporate culture. Therefore, executives should build an atmosphere of trust and openness and use corporate strategy to convert individual knowledge into valuable resources for their organization to close the performance gap and help organizations prosper.

The key is for executives to inculcate corporate culture within organizations so that information can be found and used instantaneously. Corporate culture enables organizations to promote the depth and range of knowledge access and sharing within companies.

Corporate culture is enhanced by providing further opportunities and information sharing. Executives can enhance knowledge sharing by providing access to knowledge, and stimulate new ideas and knowledge generation, transfer an individual’s knowledge to other members and departments, and improve knowledge capturing, storing, and accumulating, aiming at achieving organizational goals.

Executives that employ corporate strategy can propel knowledge sharing in the company to generate more innovative ideas and solutions for new and demanding issues that come up constantly in our hypercompetitive economic environment. In doing this, executives can employ corporate strategy through implementing coaching and mentoring practices by sharing experiences gained by imitating, observing and practicing. Executives that use corporate strategy have found that it builds a strong corporate culture through facilitating knowledge sharing throughout all levels of the organization.

Corporate strategy focuses on defining and recognizing core knowledge areas, coordinating expert opinions, sharing organizational knowledge, and scanning for new knowledge to keep the quality of their products or services continuously improving. Corporate strategy, therefore, is an essential requirement of corporate culture by which knowledge is shared among people.

However, executives may lack the required corporate strategy to interact with other organizations or distrust sharing their knowledge. Executives are, therefore, clearly the right focal point for developing networking with environmental components by adopting corporate strategy to develop relationships and interactions. The key here is to inspire their organizations as a whole to develop networking with more effective enterprises through employing corporate strategy directed at connecting knowledge with other companies. Executives are finding that corporate strategy creates a shared understanding of problems which can develop an effective corporate culture that enhances the knowledge sharing process.

Through the corporate strategy, executives could build a climate inspiring followers to share their knowledge, and facilitate the knowledge sharing process. Thus, executives can apply corporate strategy to enhance knowledge sharing among human capital and stipulate knowledge to be shared around the organization and with other companies.

Global leaders can now see how they not only can directly support corporate strategy, but it can also cultivate an effective strategic decision-making process, which will enable corporate culture within organizations. Executives can also see that cultivating an effective strategic plan coupled with cultural issues requires developing leadership within organizations—not only at the higher echelons of the organization but at every level. Thus, in light of the increased pressures of the global workplace that inspires leaders to exert effective change at the organizational level, this article points out the vital importance of business leadership in reshaping an organization’s strategy to have access to higher performing culture within organizations. This article also suggests that corporate strategy and corporate culture constitute the foundation of a supportive workplace to improve business success and reduce operational risk.

Standing on the shoulders of scholars before us, I indicate that corporate strategy and corporate culture are major resources for business success and support the positive impact of these two vital factors on business success.

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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.

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3 Effective Ways to Increase Sales Productivity

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The term ‘sales productivity’ refers to the phenomenon of maximizing the company`s sales result while minimizing the resources expended. Here, the term ‘resources’ includes anything involved in the process of sales generation such as cost, efforts, time, number of employees and technology.

The speed at which a company reaches its monthly and yearly profit goals is all that matters to survive in the commercial market. Whereas, for the overall growth of a company, it is mandatory to create an equilibrium between ROI, competency, technology advancement and sales productivity.

In short, you cannot expand your business and become a viable name in the commercial sector without increasing sales productivity. Here are a few effective and practical tips to increase the sales productivity of your company.

Calculate the Productivity of Every Individual in Your Team

A company can measure the sales productivity of individuals by the evaluation of the rate at which a respective salesperson surges the revenue graph of the company. In simple words, how efficient a salesperson is in finding out ways to increase the earning of a company through the process of sales.

In a team, few participants play a significant role in increasing sales whereas other salespersons either work to achieve the mentioned goal or rely on the cumulative progress of the team. This employs a negative impact on the key players by bringing their enthusiasm down with their work attitude. That’s why the individual graph of sales productivity of every salesperson is vital for management. It helps them to appreciate the key players for their performance and boost the motivation of the rest of the team.

Design a Sales Process That Suits Your Company’s Work Environment

According to research by Vantage Point Performance, almost 66 percent of B2B sales teams around the world don’t have a pre-defined sales process. The absence of a sales process affects the productivity cycle because every salesperson starts following his/her way to process a lead.

In contrast, when every lead moves through the same steps, surveillance becomes easy for management and every salesperson what exactly he/she has to do in a particular situation. According to a professional sales manager at a multinational company, “Proficiency goes up to 31% when a sales team has a defined sales process.”

Primary stages of the sales process include prospecting, qualifying, presenting, handling an objection, closing, and nurturing stages. You can precisely mention the amount of time a person should utilize over each step.

Buy Effectual and Suitable Customer Help Desk Software

Technology advancement always supports the way of working and help every employee to improve their proficiency. Customer Help Desk Software can support sales agents to attend clients through the cloud system. They also help in generating customized quotes for every client and allow the sales agent to keep a record of every critical detail. On the other hand, this software minimizes the time required to process a lead and also helps companies to establish a positive impact through quick responses for every query of their clients.

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Jason Junge is the CEO of PointerTop, a company dedicated to creating innovative products that enable agent-based businesses to sell, train, and support their products and services directly online. PointerTop offers CrozTop, a platform that enables direct agent-to-customer cross-interactive communications over a company’s website. For more information, visit pointertop.com.

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Change Is Just Beginning: How Leaders Can Focus On Meeting 2021’s Challenges

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Business leaders dealt with massive and rapid change in 2020 due to the COVID-19 pandemic, but many small businesses and chain stores didn’t survive.

As a new year begins amid much economic uncertainty, companies that successfully navigated 2020’s turbulence can’t rest, and they need engaged, forward-thinking leaders who can keep adjusting and focusing on the right factors in a volatile business environment, says Doug Meyer-Cuno, ForbesBooks author of The Recipe For Empowered Leadership: 25 Ingredients For Creating Value & Empowering Others.

“We live in a VUCA world,” says Meyer-Cuno, referring to the acronym standing for volatility, uncertainty, complexity, and ambiguity. “We need to adjust to how fast things are changing. It means companies adjusting to AI technology, electric cars, and hub-to-hub freight liners that are driver-free. Every company needs to think out of the box.

“Leaders, therefore, need to be fast at making decisions to compete in tomorrow’s world. They’ll have to challenge themselves to look into the future and find ways for their company to not only keep pace but stay ahead of the curve.”

Meyer-Cuno offers the following ways for company leaders to meet the frequent challenges of change in 2021 and beyond:

Align change decisions with the company vision. Meyer-Cuno says many entrepreneurs and CEOs forget the importance of setting a vision for their organization, and that makes decisions in the midst of massive change more difficult or less thought out. “Reaffirming the vision must be a priority every day until it becomes part of the DNA of the company culture,” Meyer-Cuno says. “Everyone in the company must ask themselves why the organization exists. They must ask themselves this question so often that the answer is ingrained in every decision they make. Once they do, it’s possible to navigate the uncertainties of change as a unified group.”

Be more intentional with your vision, mission and core values. “Some financially successful companies lose their compass,” Meyer-Cuno says, “which shows why it’s vital for your company to be always intentional with its vision, mission and core values. They are the standard-bearers for the organization’s reputation as well as performance. The companies that will make it in the future are the ones who can push data, processes, products, and services through the pipeline the quickest. Alignment around your vision, mission, and core values are crucial in developing a company capable of great speed and agility.”

Empower your employees. Though it’s important for leaders to often come up with the ideas and planning to chart direction, Meyer-Cuno says the most effective leaders tap into the talented and smart people around them, pick their brains in their areas of expertise, and implement their ideas. “You must empower employees not to be yes men,” he says. “Ideally, you want a group that thinks, not groupthink. Encourage debate and participation from everyone. The really talented people out there want great leaders capable of empowering them.”

Don’t put up with attitude problems. High performers who set their own rules and don’t adhere to core values aren’t worth keeping around, Meyer-Cuno says, due to the damage they can inflict on the culture. “When you’re in a leadership position,” he says, “it’s vital to the success of your team that you live what you preach. If you don’t, nobody else will either. Demonstrate boundaries and what it means to do the right thing by showing you won’t accept non-compliance from your mavericks or high performers. Taking that action will serve to further empower your teams.”

“At this critical crossroads time for many businesses,” Meyer-Cuno says, “leaders need to reevaluate how strong or fragile their company foundation is and whether it is well- equipped to handle the battering winds of change.”

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Doug Meyer-Cuno is an entrepreneur, mentor, and ForbesBooks author of The Recipe For Empowered Leadership: 25 Ingredients For Creating Value & Empowering Others. He founded a food ingredients distribution company, Carolina Ingredients, and expanded it into a nationally recognized and award-winning industrial seasoning manufacturer before it was acquired by Mitsubishi in 2019. Since then he has founded Empowered Leadership, which helps entrepreneurs, business owners and CEOs scale their companies by empowering their teams. Meyer-Cuno earned his BA in International Commerce from Furman University and is a graduate of Harvard Business School’s Owner/President Management program.

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Global Leaders Require Transactional Leadership Style

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Transactional leadership means just what it says. It is a quid per quo type of relationship between the follower and leader – a carrot on the stick approach. Two prominent scholars by the names of Antonio Marturano and Jonathan Gosling in the University of Rome and the University of Exeter believe that the effectiveness of this leadership style is dependent on two conditions: one being that the current differences in organizational hierarchies and structures are totally accepted by subordinates and the second being that all the employees are able to work towards a mutual exchange of benefits in which they are rewarded for achieving determined goals.

It is somewhat reactive, however, because a benefit can be held back or taken away if the follower did not achieve the determined goals. Scholars look at it as a passing fancy, a myth, or a schematic diagram that has not been tried and true. Unfortunately for scholars, this is not true. Millions of managers were trained in transactional leadership and it has advanced into an organization’s success-both from a performance and management level.

There is a plethora of leadership theories and models that attempt to consider leadership as an enabler of firm performance. There’s an increased emphasis on the important role of leaders when interacting with followers and stakeholders. Transactional leadership involves determining the tasks, rewarding goal achievement, and punishing failure in attaining goals. Transactional leadership style is a new performance paradigm evident in organizations today. Understanding this dimension from a transactional leadership and performance paradigm may provide a significant realization bridging this important field of leadership and management.

Some scholars such as James MacGregor Burns, Edwin Hollander, and Arthur Jue illustrate that transactional leadership is successful in developing mutual exchange between leaders and employees in organizations. This leadership form actually assumes impersonal interactions in a reality where leaders do not consider higher humanistic desires or relationships between leaders and followers. This form of leadership is still based on the grounded theory that does not explore a desired probable situation. While it has its limitations, it is still widely used in organizations. This leadership style is very popular among practicing managers today. Transactional leadership is linked with organizational effectiveness, particularly in terms of achieving goals. The key is for managers to use it sparingly, on occasion, when new details and tasks are assigned but not as the main type of leadership.

Another aspect of the transactional leadership style is that managers using this style are passive by exception or laissez-faire when applying leadership. Laissez-faire is characterized by managing the situation where a problem has occurred, and leaders take a reactive approach to correct mistakes or to overcome problems. This was uncovered by Robert Blake and Jane Mouton in the management grid research and still has importance in clarifying the type of transactional leader in some instances. Transactional leadership style has been critiqued by scholars as a leadership approach that is not concerned with proactively identifying or preventing problems. Transactional leaders do advocate for knowledge sharing and joint problem solving with subordinates.

Laissez-faire leaders do not possess high commitment in seeking the proposed solutions jointly with their subordinates. When such leaders assume the responsibility or intervention to solve problems, they rarely consider the empowerment of their employees to assist in problem-solving and goal setting. To overcome this obstacle, a scholar at the University of Aalborg by the name of Josef Frischer suggests that leaders today should empower followers to engage in problem-solving.

Therefore, transactional leadership can be used to review the tasks, goals, and requirements of subordinates. Leaders would begin using transactional leadership to set goals and determine tasks and then, when time allows, move toward more transformational leadership and place more emphasis to engage followers. This supports the approach for leadership to generate two sides of an X and Y-axis. On one side is the concept of leadership that creates change through taking a process-oriented (transformational leadership) and the other as more of a relationship-oriented approach (transactional leadership).

Thus, transactional leadership does affect organizational performance by achieving business goals. And four scholars by the names of Timothy Obiwuru, Andy Okwu, Victoria Akpa, and Idowu Nwankwere affirm this relationship. They shed light on the critical role of transactional leaders in enhancing non-financial performances, particularly in terms of improving organizational commitment. Transformational leadership provides a frank appellation of the importance when beginning a leader-follower relationship, downsizing, upsizing, onboarding, and making significant changes to the structure and organizational improvements, but leaders must be aware of its limitations.

Just as leaders need to be both autocratic and democratic at times they also need to be both transactional and transformational at times also. Knowing both styles and when is best to use them is an important concern here and will defunct the myth of transactional leadership as being an adequate style of leading in and of itself.

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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.

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5 Ways HR Can Make Diversity and Equality Central to Succession Planning

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Women are making progress in corporate leadership. A record 41 female CEOs are scheduled to run Fortune 500 companies in 2021.

Along with this positive news about diversity and equality in the workplace, business observers think another good example was set by a male CEO deciding to step down in 2021. Zalando’s Rubin Ritter said he is leaving his position so he can put his wife’s career first.

While these actions atop corporate structures signal steps forward for women, the challenge at many companies remains how to create a culture of diverse and equal succession planning at all leadership levels, says Jennifer Mackin (www.jennifermackin.com), ForbesBook author of Leaders Deserve Better: A Leadership Development Revolution and a leader of two consulting firms.

“Diverse teams are built through a focused and strategic succession plan, which identifies the best talent early on and commits to developing those people over a long period of time to replace leaders who inevitably leave,” Mackin says.

“It’s been proven that executive teams with varied backgrounds and leadership styles offer important advantages to businesses. And the C-Suite must drive the succession planning strategy in order to maximize the process.”

Mackin offers five ways for companies and their HR departments to create a culture of equal and diverse succession planning:

Intentional emphasis by top leadership. Through her experience working with many organizations, Mackin has found that even among companies focusing on diversity and inclusion, most haven’t hit their goals. One of the problems, she says, is a lack of clear initiatives backed by leadership. “Many companies don’t implement a succession plan consistently,” Mackin says. “If current leaders don’t have the time to devote to it, it comes back to bite the company when potential replacements aren’t properly prepared. It requires a culture change, where top leadership embraces diversity as a foundational part of the succession plan and the company’s future growth.”

Commitment for the long term. Mackin says it can take three to five years for a company to have sufficiently prepared people for their next move. Yet many companies find themselves in a position where they lose a key executive and they haven’t planned well enough ahead for the transition. “Succession planning is a long, detailed process that takes into account all the demands of the job while determining who best to fill it,” Mackin says. “That requires documenting key knowledge and skills needed for success, and the company identifying  support and development needs to make the replacements ready for their new role.”

Focus on all leadership roles at all levels. “A sound culture top to bottom relies on the HR team to ensure that potential leaders at each level are thoroughly prepared,” Mackin says. “That requires a broader development plan for every individual in the organization.”

Measuring performance objectively and subjectively. Mackin says consistent and high-performing employees who keep improving and take on more responsibility may have the right stuff for leadership. But determining how to objectively measure the performance of a possible future leader is critical to the overall process. “It is difficult to create a succession plan without objective data and leadership coaches, who can extrapolate that data and know what it means in terms of leadership capability,” Mackin says.

Share company plans with leadership candidates. “Sharing the plan shows employees that the company is thoughtful about their future plans, is willing to invest in employee development, and that there are opportunities to work toward,” Mackin says. “Communicating and outlining all roles will help others aspire to gain the knowledge and skills they need to fill them in the future.”

“Diversity and equality need to be a cornerstone of succession planning,” Mackin says. “That kind of culture starts at the top and never stops, showing that real progress means everyone’s included.”

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Jennifer Mackin (www.jennifermackin.com) is the ForbesBook author of Leaders Deserve Better: A Leadership Development Revolution, and a leader of two consulting firms – CEO of Oliver Group, Inc. and President and Partner of Leadership Pipeline Institute US. As an author and speaker with over 25 years of consulting experience, she is a recognized leadership development influencer, having worked with CEOs, human resources managers, leadership development leaders, entrepreneurs, and other senior leaders in all industries. She earned her BS in marketing from Indiana University and her MBA from Owen School of Management at Vanderbilt University. 

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How Management Consultants Can Fix Knowledge Management

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There is a scientific, philosophical, and organizational side to knowledge that executives should at least be aware of in today’s hypercompetitive business environment. Scientific knowledge is objective and manifests itself as provable and verifiable knowledge or truth, while philosophical knowledge clarifies that truth is inaccessible. The key for executives is that organizational knowledge, unlike scientific and philosophical knowledge, focuses on enhancing effective performance. Answering the questions executives often ask: “What works?”

Based on this view, this kind of knowledge empowers the capabilities of an organization, and actively improves its competitive advantage in the marketplace. Executives are already aware that organizational knowledge takes an objective approach and can positively contribute to a firm’s performance. This is why executives care whether knowledge is organizational or not? The simple answer is that if organizational knowledge is not shared and managed, companies may become obsolete, taken over, or acquired. The key is how to use this knowledge, enhance it, distribute it, and capture it.

Every executive is held to the grindstone of maximizing financial and non-financial measures—their careers are tied to company performance measures. Every executive also knows that company performance measures can illustrate whether knowledge management is contributing to bottom-line improvement. This article articulates a different approach and introduces a new perspective of knowledge management by showing how knowledge management consultants can help companies to better manage knowledge, meaning that organizational knowledge is power and can be used as an asset when competing with rivals. This is my experience of working with a team of top-level management consultants around the globe.

Consultants can look at three-step processes of knowledge accumulation, integration, and reconfiguration. This model to managing knowledge reflects a more strategic and practical perspective, as it is process-oriented and most applicable in the context of leading organizations. Consultants know that applying this model is advantageous and good sound strategic implementation. In this model, organizational knowledge is accumulated by creating new knowledge from organizational intellectual capital and acquiring knowledge from external environments. In the process of knowledge accumulation, the exchange of knowledge with external business partners can develop innovative environments.

Consultants can play a strategic role in expanding knowledge accumulation by applying incentives as mechanisms to develop a more innovative climate and managing effective tools to acquire knowledge from external sources. They can particularly develop a workplace which is highly effective in:

-Acquiring knowledge about new products/services within our industry.

-Benchmarking performance with competitors or industry.

-Using feedback to improve subsequent practices.

-Utilizing teams (e.g. committees or management teams) to manage knowledge resources.

-Developing and implementing education or training programs.

-Carrying out a career path program or recruitment program to acquire experts.

-Conducting organizational events (such as a “knowledge contest” or “knowledge fair”) that promote knowledge activities.

Secondly, consultants can improve knowledge integration by facilitating knowledge sharing around the organization. In fact, they can positively impact knowledge integration by creating expert groups and enhancing dynamic relationships among employees and departments and within companies. A systematic process of coordinating company-wide experts will enable companies by developing a more innovative climate within organizations. Further, it can be seen that some qualities indicating a high-performing expert group (such as trust and reciprocity) are highly overlapped with the definition of organizational effectiveness describing organizational capabilities in creating trust and reciprocity. Based on this view, it could be argued that effective coordination of company-wide experts itself can provide a significant contribution to organizational effectiveness, thereby developing a climate that all leaders aim to create. In particular, consultants can develop a workplace which is highly effective in:

-Monitoring or controlling organizational knowledge to keep products or services in line with market requirements.

-Regularly assessing knowledge requirements according to environmental changes.

-Linking the knowledge sharing system using various software and programs.

-Defining “core knowledge” or “core competence” areas.

-Using expert groups to evaluate the quality and effectiveness of organizational knowledge.

-Disseminating organizational knowledge among employees.

-Rewarding individuals or teams based on the quality of knowledge generated.

Thirdly, the knowledge within organizations needs to be reconfigured to meet environmental changes and new challenges. In this process, knowledge is globally shared with other organizations in the environment. Consultants can promote knowledge reconfiguration by improving networking with external sources and developing relationships. Further, they can also inspire organizational members to network with more successful companies. It is evident that networking with external business partners improves effectiveness, thereby providing directions for chief executive officers to develop a more effective corporate vision incorporating various concerns and values of external business partners.

Moreover, it is believed that networking with other companies contributes to the effectiveness of learning, which in turn empowers human resources by creating new knowledge and solutions. Accordingly, the process of knowledge reconfiguration can play a crucial role in enhancing organizational effectiveness. Especially at the corporate level, consultants can develop a workplace which is highly effective in:

-Creating knowledge alliances with suppliers, customers, or other partners.

-Sharing knowledge management visions and goals with external partners (such as suppliers and customers or other partners) to develop collaborative activities, shared goals, and trust-based relationships with them.

-Extending (or linking) knowledge-related policies or rules (measurement, rewards) with external partners (such as customers, suppliers, or other partners).

-Linking our knowledge-sharing system with external partners (such as customers, suppliers, or other partners).

-Facilitating and implementing activities such as conferences, contests, seminars with external partners.

In conclusion, organizational knowledge must be guarded and not shared with the competition. Any leak of such information may expose the organization and increase the operational risk. The three processes of knowledge management mentioned above, when carried out correctly, can prevent further operational risk in today’s knowledge-based economy.

One important dimension that all leaders world-wide can learn from this article is that knowledge management consultants can help clients’ companies to address the current gaps in knowledge management performance and improve their competitiveness in today’s uncertain business environment.

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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.

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Archives, Executive Education, Global Trade Daily

In The Digital Age, Leadership Is More Important Than Ever

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There are some executives that like to look at academic journals but unfortunately, the crossover literature has not reached them enough. I attempt to blend scholarly concepts with real-world applications. For the executive’s corner, I place a great deal of emphasis on the literature of leadership and information technology as two significant indicators for financial performance. This article adds to a relatively small body of literature but pays homage to the scholarly contributions. I highlight the direct impact of leadership on financial performance, and also simultaneously portray the indirect contribution of leadership in improving organizational outcomes by implementing information technology as another important component of organizational performance. This article actually investigates the crossover potential of scholarly research and how it can be applied in the organizational boardroom.

Executives will also see that cultivating effective technological initiatives requires developing leadership within companies—not only at the higher echelons of the company but at every level. In light of the increased pressures of the global workplace that inspires executives to exert effective change at the organizational level, this article points out the vital importance of leadership in reshaping and, in some cases, manipulating a company’s internal resources to have access to higher performing technology within companies.

The focus of this article is based upon the critical role of leadership which allows a rich basis for understanding the mechanisms by which knowledge integration and financial performance are influenced. Scholars repeatedly uncovered leadership impacts on knowledge integration and financial performance. This article articulates a different approach. I simply extended the current literature by showing how executives can contribute to knowledge integration and financial performance by fostering effective technological platforms. These two factors coupled with leadership are presented as a new approach for executive implementation.

I also suggest that executives embrace leadership. Leadership influences some of the spans of control of executive responsibility. My primary focus is on one factor (i.e. information technology) but there are many more important components of the managerial function that can be enhanced when leadership is embraced. The key here is that there are positive effects of information technology, knowledge integration, and financial performance.

Executives will also see that I expand upon the subject matter of a company’s internal resources. Through articulating the impacts of leadership on information technology, I add to the current and extant literature. Insufficient consideration of the impact of leadership on the companies’ internal resources has been exposed and I attempt to address this concern for the first time. For executives, this article can portray a more detailed picture of the effects of leadership on information technology, knowledge integration, and financial performance that have been mentioned but not placed in a model in the past.

Leadership and Information Technology

The only thing we know is technological change is on the rise. With the inception of new technology and services quickly becoming obsolete, executives are staid with managing the future that is somewhat evasive.

Executives can develop relationships and interactions within companies, set desired expectations, and inspire employees to identify further opportunities in their business environment. When executives view information technology as a vital important organizational resource that facilitates organizational communications and improves the search for knowledge, they begin to see opportunities for successful business ventures.

Executives also spend a great deal of time conceptualizing strategic endeavors, and scholars affirm that the strategic role of leadership is enhanced when the implementation of information technology successfully occurs at the right time and place. Thus, executives raise the levels of awareness on the importance of technology and empower employees to improve the effectiveness of information technology implementation within companies. Therefore, executives can positively affect information technology implementation within companies. Executives must understand that leadership can highly support information technology to improve knowledge integration and financial performance and, therefore, remain competitive.

Leadership and Financial Performance

Executives develop organizational communications aimed at providing valuable resources for all employees. Thus, executives can enhance knowledge sharing among employees and stipulate knowledge to be shared around the company. Sharing the best practices and experiences could positively impact aspects of organizational performance such as innovation and providing learning and growth opportunities for employees. Empowered employees can also enable a company to actively respond to environmental changes and collective-interests. The key idea is to identify employee’s needs and show concern for both organizational needs and employee’s interests concurrently.

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

Executives can also inspire employees by setting highly desired expectations. A higher level of follower expectation can enhance productivity and perhaps decrease organizational costs. Scholars agree that executives positively affect financial performance through improving the price of stock, decreasing costs, increasing sales, improving innovation, increasing the rate of responses to environmental changes, improving the quality of services, along with a stronger customer focus and developing learning opportunities for employees. Thus, leadership is positively associated with companies’ financial performance.

Information Technology and Financial Performance

Information technology significantly contributes to company financial performance. Scholars acknowledge that information technology is an important enabler to effectively implement organizational processes. Communication technologies can, in fact, reduce paper-based transactions for companies that can potentially decrease costs and subsequently improve profitability for companies. Furthermore, it can be seen that communication technologies contribute to companies to effectively identify opportunities in the business environment that leads to identifying the best opportunities for investment in the industry that potentially leads to improve financial performance for companies in terms of return on investment (ROI).

Decision-aid technologies as another kind of information technology can also help companies to effectively create more innovative solutions for their organizational problems. Executives can, therefore, build a high-performance company through implementing information technology.

Information Technology and Knowledge Integration

Information Technology is the new competitive advantage and the companies that embrace it will survive while those that do not will find their companies facing possible acquisition. Information technology is a resource for knowledge integration. With knowledge integration, executives can sustain current operations while preparing future endeavors. Information technology, as a competitive resource, encourages employees to embark on technological facilities such as shared electronic workspaces to provide new ideas and possible solutions for solving problems. Problems that may leave a company to debunk and less competitive.

Scholars found that the lack of innovative workplaces adversely impacts the company’s capability to integrate knowledge, and they suggest that companies use information technology to successfully facilitate knowledge integration. Information technology, therefore, plays a critical role in integrating knowledge by executives and is also aligned with the knowledge-based view of the firm which not only builds upon the dissemination of information but also how it is restored and retrieved.

Some Lessons for Executives

This article theorizes that leadership has significant effects on information technology. It follows that cultivating effective impacts on information technology is assisted by developing leadership within companies. The practical contribution of this article lies in explaining how executives influence information technology.

This article suggests that information technology constitutes the foundation of a supportive framework to improve knowledge integration and financial performance. In fact, it can be argued that if information technology is not completely supportive of knowledge integration, companies cannot expect to benefit fully from knowledge management projects.

Both in theory and in practice, information technology is depicted as an important enabler for knowledge integration and financial performance. Scholars noted that a strong alignment exists between the success of knowledge management projects and information technology implementation and found that knowledge management projects are more likely to succeed when companies develop and use broader technological infrastructures. This article goes further and provides elaborative insights for executives by modeling how information technology mediates the relationship between leadership, knowledge integration, and financial performance.

This article reveals that executives actively deploy this organizational resource (i.e. information technology) to improve knowledge integration, and it is quite understandable that leaders are better suited to enable knowledge management projects within companies through channeling knowledge management efforts into employing supportive information technology. Therefore, this article suggests that it is critical that executives understand that leadership supports information technology implementation to effectively manage knowledge management projects.

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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.

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Who’s The New Boss? How To Avoid Succession Planning Mistakes.

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Many corporations have endured a rough 2020 that included the resignations of top executives at some major brands. Will their replacements be ready? It’s a fair question, especially if the new company leader is promoted from within. Studies show many senior leaders don’t think their companies properly educate and prepare future leaders for succession.

If an organization has no pipeline of leaders ready to take over senior leadership positions, then a lack of succession planning can be catastrophic for even the most enduring company, says Jennifer Mackin (www.jennifermackin.com), a leader of two consulting firms and the ForbesBook author of Leaders Deserve Better: A Leadership Development Revolution.

“Many companies don’t find the development of leaders significant until they are readying for succession planning, embarking on a new venture, or weathering storms that threaten their viability,” Mackin says. “This reactive approach is risky because development takes time.”

Mackin says it’s time for CEOs, senior leaders, and heads of HR to modernize their leadership development because of the ever-evolving business world, which is especially volatile now.

“Leaders often weren’t ready to assume higher roles before the pandemic, and now it’s a bigger problem in terms of succession,” Mackin says. “A rapidly-changing time, such as now, is a good reason to focus on succession to ensure the chances of a company’s long-term survival.”

Mackin says the common mistakes companies make in their succession plans are:

They start too late. Even when companies realize they will have a void in their leadership roles, they wait too long to get the succession process started, Mackin says. “They may know people are retiring in two years,” she says, “but they need to start their planning well before then. It takes three to five years to do it right.”

They only consider the CEO role in their succession conversation. Mackin says that when a company does a thorough evaluation of its people, looking not only at their present performance but gauging their future, they might discover they don’t have the right kinds of people in the right roles. “Companies that win think strategically and have a people plan to address those gaps,” she says. “I recommend an overall development plan for the organization’s leaders as a whole and for individuals, and a succession plan for all key roles, not just for the CEO or C-Suite.”

The succession plan and development plan aren’t shared with leaders. Many companies worry that if their plans are known by the individuals slotted for upcoming senior roles, other people, not chosen, will leave. “Having outlined all roles with expectations will help others aspire to gain the knowledge and skills they need, because then they know what is required at the next level,” Mackin says.

Decisions are made subjectively by the top leadership team. “It is tough to create a succession plan without objective data about the future open roles and the employees that could potentially fit those roles with the right development,” Mackin says.

“Prepared leaders who are stepping into higher roles have never been more important than they are now,” Mackin says. “They are more adept during unforeseen disruptions and are able to pull their teams together. They can recraft a new, realistic, strategic direction quickly.”

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Jennifer Mackin (www.jennifermackin.com) is a ForbesBook author of Leaders Deserve Better: A Leadership Development Revolution, and a leader of two consulting firms – CEO of Oliver Group, Inc. and President and Partner of Leadership Pipeline Institute US. As an author and speaker with over 25 years of consulting experience, she is a recognized leadership development influencer, having worked with CEOs, human resources managers, leadership development leaders, entrepreneurs, and other senior leaders in all industries. She earned her BS in marketing from Indiana University and her MBA from Owen School of Management at Vanderbilt University.