Business

Leading across cultures

In the work environment, unexpected misunderstandings often arise as a result of cultural differences in leadership styles. Americans, for example, see themselves as egalitarian and think of the Japanese as hierarchical. But American leadership seems to be unclear. This is mainly because American bosses are outwardly egalitarian—relating with subordinates on a first name basis and encouraging them to participate in meetings—they can be extremely top-down in the way they make decisions.

It's very common for people of different cultures to struggle with mutual incomprehension. The main reason for this is managers' failure to differentiate between two important aspects of leadership culture.

Using DNA to track supply chain

Consumers are becoming more interested in sustainability and want to know for sure where products come from. One way to do this is to use DNA. For example, a supplier in the US grows organic cotton. The cotton is then sprayed with a unique DNA combination. This makes it easy to find out if a final product is made from that cotton. No one can substitute cheaper, non-organic cotton anywhere in the supply chain.

Another concern is labor practices. Consumers want to be sure the workers who produce the goods are treated well. The US has established new rules requiring companies to prove that imported goods were not made with forced labor. If they can't, then the goods are seized at the border. From January to March in 2023, border officials seized almost $1 billion worth of shipments.

The right way to handle layoffs

In recent times, big tech companies have been getting a reputation for their inability to fire their staff gracefully. Due to an economic slowdown, they have been forced to conduct massive layoffs but choose to do so in the worst possible ways.

Klarna, a fintech company, cut loose 10% of its workforce through a prerecorded video. They did not make it clear who was leaving until two days later. Another business, Better.com, fired hundreds of people in a single Zoom call accusing employees of “stealing from the company” because of low productivity.

Consequently, Continuum, a consulting start-up, began providing layoff consulting services. It offers part-time consultants to advise and devise a plan to proceed with empathy and professionalism. This helps soften the blow for those leaving and builds a positive image of the employer’s brand.

Some of the advice given by the company is:

Live shopping, then and now

"Live" shopping is trending right now. For many young people, it may seem like a new thing. But it actually started in the US in 1982. The Home Shopping Network (HSN) started a cable channel to sell goods on live TV. Other shopping channels followed, and they still exist today. Hosts show clothing, home goods, jewelry, etc., in real time (not pre-recorded). Viewers can call in and buy whatever is being shown.

Now it's on the internet. Most major retail companies have set up live shopping channels on their websites. And smartphones mean you can tune in any time, anywhere. Social media sites are another platform for live shows. Stores are trying to recreate the in-person shopping experience with real-time chat and shopping "parties" with friends.

Design for humanity

On one hand, designers aim to make useful, attractive products or services. On the other hand, capitalism aims to make money for investors. When these two things are put together, designers can lose. Designs become more a means of profit than things of beauty and utility.

Investors want to get a high return on investment. So, they continually push for new products. If there isn't a demand for that product, they try to create demand. They use advertising to persuade consumers to buy unneeded products. On top of that, profit-driven companies create products that don't last and can't be repaired easily, so people have to keep buying new ones.

Designers, unfortunately, have little or no say in the matter. Designers often want to make beautiful, sustainable products, but can't. They simply have to satisfy the profit-driven executives.

Japan has the oldest companies

Japan has more old companies than any other developed nation. A study of 41 countries shows Japan has more than half of the companies older than 200 years. As a matter of fact, the oldest company still in existence is Kongō Gumi Co., Ltd., founded in 578 A.D. It was in operation under its own name until 2006, when it became a subsidiary of Takamatsu Construction Group

According to David E. Weinstein, an expert on the Japanese economy, business failures are as common in Japan as anywhere else, but the importance of tradition keeps the companies on their feet.

To ensure survival, a popular custom in Japanese family businesses is to adopt heirs outside the family, such as in-laws and talented male workers. As stated by Weinstein, "It's the name that is continuing, people get attached to the names."

While many parts of the world prioritize profit maximisation, Japanese companies focus on building and passing on a legacy to future generations.

Benjamin Hubert: Designing for all

Benjamin Hubert, founder of the design company LAYER, believes that design should be for the people, not for galleries. LAYER’s vision is to solve everyday problems in the best way possible. For example, a client approached them about a new wheelchair. This was a company with no relationship to design—they just needed a better wheelchair. According to Hubert, “clients approach us because they want a functional and affordable product that’s also beautiful.” 

Hubert founded the LAYER start-up in 2010 after working for a large agency for a few years. He recommends to all founders of start-up companies that they work for someone else first. That way you learn about all the aspects of a business.

The best age to found a startup

Well-known entrepreneurs like Bill Gates, Steve Jobs, and Mark Zuckerberg were in their early twenties when they launched their highly successful companies. The Harvard Business Review (HBR) explores whether these famous cases reflect a general pattern.

The HBR team analyzed the age of all business founders in the United States in recent years and found that the average age of entrepreneurs at the time they founded their companies is 42. In software startups, the average age is 40, and younger founders are common. However, young people are less common in other industries such as oil and gas or biotechnology, where the average age is closer to 47.

HBR discovered that among the top 0.1% of startups based on growth in their first five years, the founders started their companies when they were, on average, 45 years old. Evidence points to entrepreneurial performance rising sharply with age before starting to drop in the late fifties.

A woman in the whisky business

Bessie Williamson (1910-1982) was a woman in a man's industry. She ran a whisky distillery in Scotland at a time when women weren't managers in any business, let alone the whisky business. But Williamson worked her way up from a typist to the owner and CEO of the Laphroaig [lah-FROYG] distillery, becoming a well-respected boss and highly successful manager. She brought Laphroaig distillery through difficult times during WWII and began a far-reaching modernization process before retiring.

Williamson was known in the business as the "Islay Labour Exchange" because she found a job for almost everyone who needed one. And if workers didn't have a pension plan, she kept them on well past the usual age of retirement. Her employees were always first in her mind, even in the hard times.

The benefits of living abroad

According to studies commissioned by the Harvard Business Review (HBR), international experiences can enhance creativity, reduce racial bias, and promote career success.

HBR set out to examine how international experiences can transform a person’s sense of self, specifically self-concept clarity, or the extent to which someone’s understanding of themself is clearly defined, and consistent.

Self-concept clarity has been linked to multiple benefits, such as psychological well-being, the ability to cope with stress, and job performance.