Weekly Business Insights Week 198 | July 9-15, 2021

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Shaping: Ideas and forces shaping economies and industries

The new fault lines on which the world economy rests

The Economist | July 10, 2021

Learning From Israel’s Successful Innovation Ecosystem

By Oded Agam | Forbes Magazine | July 14, 2021

Leading & Managing

Intentional learning in practice: A 3x3x3 approach

By Christensen et al., | McKinsey & Company | April 19, 2021

The Circular Business Model

By Atasu et al., | Harvard Business Review Magazine | July- August 2021 Issue

Why Pivoting People Is a Strategic Priority

By Curtis L. Odom and Charn P. McAllister | MIT Sloan Management Review | June 24, 2021

Entrepreneurship

Marketing Your Niche in the Most Competitive Industries

By Jason Hennessey | Inc Magazine | July 01, 2021

How the 10 Masks You’re Still Wearing Hurt You and Your Business 

By Iona Holloway | Entrepreneur | July 14, 2021

Extractive Summaries of Articles

SHAPING‌ ‌SECTION‌ ‌——‌ ‌ ‌

The new fault lines on which the world economy rests

The Economist | July 10, 2021

The pandemic caused a fearsome economic slump, but now a weird, exhilarating boom is in full swing. The oil price has soared, while restaurants and haulage firms are having to fight and flatter to recruit staff. As listed firms signal that profits will hit an all-time high this year, stock markets are on a tear. An index produced by JPMorgan Chase and IHS Markit suggests that global growth is at its highest since the exuberant days of 2006.

Any escape from covid-19 is a cause for celebration. But today’s booming economy is also a source of anxiety because three fault lines lie beneath the surface. Together, they will determine who prospers and whether the most unusual recovery in living memory can be sustained.  

The first fault line divides the jabs from the jab-nots. Only those countries getting vaccinations into arms will be able to tame covid-19.  The second fault line runs between supply and demand. Shortages of microchips have disrupted the manufacture of electronics and cars just when consumers want to binge on them. The cost of shipping goods from China to ports on America’s west coast has quadrupled from its pre-pandemic level. Even as these bottlenecks are unblocked, newly open economies will create fresh imbalances.  The final fault line is over the withdrawal of stimulus. At some point, the state interventions that began last year must be reversed. Rich-world central banks have bought assets worth over $10trn since the pandemic began and are nervously considering how to extricate themselves without causing a flap in capital markets by tightening too fast. 

You might think that an event as extreme as a pandemic, combined with the unprecedented government response to it, would eventually trigger an equally extreme global economic reaction. Pessimists worry about a return to 1970s-style inflation, or a financial crash, or that capitalism’s underlying energy will be drained by state handouts. Such apocalyptic outcomes are possible, but they are not likely. Instead, a better way to think about the unusual outlook is to examine how the three fault lines interact differently in different economies.

3 key takeaways from the article

  1. The pandemic caused a fearsome economic slump, but now a weird, exhilarating boom is in full swing.
  2. Any escape from covid-19 is a cause for celebration. But today’s booming economy is also a source of anxiety because three fault lines lie beneath the surface. The first fault line divides the jabs from the jab-nots. The second fault line runs between screwed supply and flourishing demand. The final fault line is over the withdrawal of stimulus.
  3. Together, they will determine who prospers and whether the most unusual recovery in living memory can be sustained.

Full Article

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Topics:  Global Economy, COVID-19, Supply Chain

Learning From Israel’s Successful Innovation Ecosystem

By Oded Agam | Forbes Magazine | July 14, 2021

Israel has long been known as the “Startup Nation” with more than 6,000 active startups, making it the world leader for startups per capita. Recently, with the increase in unicorns (Israel has the highest number of unicorns per capita) as well as R&D centers of multinational corporations (530 R&D centers), Israel is transforming to become the “Scale-Up Nation.”

What are the secrets that make a country with only 9 million people have so many successful high-tech companies?  Based on the author’s experience, it’s all about the people and the location. Innovation and entrepreneurship are a necessity. There’s no other way. You must innovate and create to survive. When it comes to Israel, the author calls it “The Island Syndrome.”

  1. Adopt a global mindset.  Although Israel isn’t a geographical island, from the author’s perspective, it does have the characteristics of an island since it’s surrounded by the Mediterranean Sea on one side and by countries that don’t have democratic-free market economies. In fact, the distance between Israel and another OECD country is more than a thousand miles, with air transport or sea transport being the only transportation options. This means that any business, startup or large corporation that aspires to succeed must think at a global scale from day zero. The market is just too small to enable a big economical success if one doesn’t target international markets from the get-go.
  2. Be resourceful.  The author observed that “islanders” typically develop a set of survival characteristics that allow them to flourish in a remote area. They can have limited resources available at hand and must be resourceful and find new innovative ways of doing things in a more optimized manner.
  3. Prioritize diversity.  Israel, in many ways, has a highly diversified population, and the author believes diversification is important for improving the entrepreneurial and innovative spirit. Companies, therefore, can increase their diversity to further drive innovation and better business results. 
  4. Learn and adapt.  Immigrants have something in common: They’re forced to learn and adapt to survive. They must adapt to the new environment and “learn new tricks” to succeed.
  5. Take risks to overcome obstacles. If you live in New York City, you’ve heard of “Chutzpah.” It’s the Hebrew word that means something like “daring to do/say the unconventional thing in order to maximize results.” The author has noticed that Israelis typically like to choose their own way of living.  So, have audacious goals and find a way to make things happen.
  6. Be friendly.  Israelis are often very direct in their approach, and this sometimes requires adjustment for non-Israelis at first. However, most of the time they have a highly friendly nature, in the author’s opinion. Look to foster long-term relationships with customers, partners, investors and employees.

3 key takeaways from the article

  1. Israel has long been known as the “Startup Nation” with more than 6,000 active startups, making it the world leader for startups per capita.
  2. Human capital is the most important asset that Israel has. The country fosters an uncompromised focus on innovation and entrepreneurship to survive and flourish.
  3. According to one of the entrepreneurs, if any other country wants to follow the footsteps , it and its people have to develop a global mindset, be resourceful, accommodate diversity, learn and adapt, take risks to overcome obstacles, and be friendly.

Full Article

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Topics:  Entrepreneurship, Innovation, Ecosystem

LEADING & MANAGING

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Intentional learning in practice: A 3x3x3 approach

By Christensen et al., | McKinsey & Company | April 19, 2021

What drives most of us to learn something new is curiosity and a desire to keep growing. Turning that desire into new capabilities, though, requires a plan. The most effective strategy for achieving learning goals incorporates three key elements: a defined number of clear and immediate goals, a defined period in which to meet those goals  and a defined group of people who can support and monitor progress on goals.

To that end, the authors have designed a simple heuristic—“3x3x3”—as a memorable baseline method for designing professional-development goals in a way that aligns with the practices of effective learning.  In simple terms, 3x3x3 encourages you to define three development goals, over a three-month period, engaging three other people (as a minimum) to support you in those goals and hold you accountable. It’s a framework that the authors use in varying forms to help them put intentional learning into practice.

Three goals: when it comes to setting development goals, the authors recommend focusing on no more than three at any given time. Anything more than that is likely to be counterproductive, forcing you to divide your focus, energy, and practice among too many pursuits.  At the same time, there are also perils to setting too few goals.

Three months:  Think of three months as a heuristic that underscores the importance of building a plan and process for achieving the goal you’ve set. The optimal duration of time may vary somewhat, depending on the nature of the goal. Reasons, for instance, three months provides enough “runway” to make tangible progress against a goal through cycles of practice, feedback, and (where needed) formal training.

Three other people.  Involving others in our learning is one of the most powerful ways to improve goal attainment. It creates healthy social pressure. It allows others to know where their feedback or ideas would be most useful.

3 key takeaways from the article

  1. What drives most of us to learn something new is curiosity and a desire to keep growing. Turning that desire into new capabilities, though, requires a plan. 
  2. For intentional learning, it’s essential to cultivate both the right mindset and the right skills to keep learning throughout our personal and professional lives. 
  3. The most effective strategy for achieving learning goals incorporates three key elements: a defined number of clear and immediate goals, a defined period in which to meet those goals, and a defined group of people who can support and monitor progress on goals.

Full Article

(Copyrights)Topics: Learning, Personal Development

The Circular Business Model

By Atasu et al., | Harvard Business Review Magazine | July- August 2021 Issue

It’s easy to see why more and more manufacturing companies are talking about what’s often called the circular economy—in which businesses create supply chains that recover or recycle the resources used to create their products. But creating a circular business model is challenging, and taking the wrong approach can be expensive. 

Creating a sustainable circular business model depends on many factors, but perhaps the most important is choosing a pathway that aligns with a company’s capabilities and resources—and one that addresses the constraints on its operations. The authors, based on their research and experience, suggest three basic strategies for circularity and offer a tool to help manufacturers identify which is most likely to be economically sustainable for them.  The three basic strategies are:

  1. Retain product ownership (RPO). In the classic version of this approach, the producer rents or leases its product to the customer rather than selling it. Thus the producer is responsible for products when consumers have finished with them.  RPO is an interesting strategy for companies that offer complex products with a lot of embedded value.
  2.  Product life extension (PLE). Companies applying this strategy focus on designing products to last longer, which may open up possibilities for markets in used products. Because a longer product lifespan means fewer purchases over time, this may seem like a bad idea for original-equipment manufacturers. But durability is a key competitive differentiator and provides a strong rationale for premium pricing.
  3. Design for recycling (DFR). Companies applying this strategy redesign their products and manufacturing processes to maximize recoverability of the materials involved for use in new products. This strategy often involves partnering with companies that have specific technological expertise or that may be best able to use the materials recovered.

Determining which combination of the three basic strategies will unlock the most value for your company involves some practical and very specific questions, such as whether you can reclaim your product from the customer, whether it can be moved, and whether you can remanufacture it. 

3 key takeaways from the article

  1. It’s easy to see why more and more manufacturing companies are talking about what’s often called the circular economy—in which businesses create supply chains that recover or recycle the resources used to create their products. 
  2. But creating a circular business model is challenging, and taking the wrong approach can be expensive. 
  3. Three basic strategies for circularity are:  retain product ownership,  product life extension, and design for recycling.

Full Article

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Topics:  Business Model, Circular Economy, Environment

Why Pivoting People Is a Strategic Priority

By Curtis L. Odom and Charn P. McAllister | MIT Sloan Management Review | June 24, 2021

Just like post-pandemic physical workspaces will need revising, so too will the skill sets and capabilities of our employees. Yes, leaders absolutely need to reimagine the workplace, but organizations cannot lose sight of the people returning to those spaces. Focusing solely on redesigning the workplace or offering flexible work arrangements (such as remote or hybrid options) without considering employees will hamstring organizations by leaving their people in the lurch.

If new strategies cause changes to our workplace, then those same strategies certainly warrant a closer inspection of our workforces — both leaders and employees. The pandemic made it necessary for companies to make strategic pivots to adapt to rapidly changing environments. To meet these new demands, they must also pivot the people within their organizations. Pivoting people refers to a form of talent management that focuses on retraining employees so that they can fill those jobs or roles most closely aligned with an organization’s strategic direction. Preparing employees now, through reskilling and upskilling, will allow organizations to move forward without forcing their employees to adapt on the fly — or, worse, to fail.

Before any such consideration, we need to answer this question: What is my organization’s new direction? When you know the answer, that is the time to gather additional information and to focus on leadership and employees.

Good leadership is always important, but it is especially critical during a change in strategy. Five leadership competencies of utmost importance to those leaders looking to move their organizations forward are: they go for necessary structural changes, need to contextualize changes and focus on the purpose, maintaining a sense of community among staff members and other stakeholders, listen to and try to work with employees, and leaders need to take care of themselves as well.

3 key takeaways from the article

  1. Just like post-pandemic physical workspaces will need revising, so too will the skill sets and capabilities of our employees.
  2. If new strategies cause changes to our workplace, then those same strategies certainly warrant a closer inspection of our workforces — both leaders and employees. But before any such consideration, we need to answer this question: What is my organization’s new direction?
  3. Five leadership competencies of utmost importance to those leaders looking to move their organizations forward are: they go for necessary structural changes, need to contextualize changes and focus on the purpose, maintaining a sense of community among staff members and other stakeholders, listen to and try to work with employees, and leaders need to take care of themselves as well.

Full Article 

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Topics:  COVID-19, Leadership, Change Management

ENTREPRENEURSHIP

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Marketing Your Niche in the Most Competitive Industries

By Jason Hennessey | Inc Magazine | July 01, 2021

What makes your business different from others? Can you articulate why your customers have chosen you over your competitors? These answers come easily when you know your customer and market the solution to their problem. A few of the suggestions, as shared by the author based on his professional experiences are:

Standing out in a sea of competition.  The marketing industry is highly competitive so when it comes to standing out as a business owner, defining your unique selling proposition is key. This involves establishing a value prop that speaks to the specific needs of your market and positions your brand as superior against your competitors. Be sure to keep the scope narrow; you can’t be all things to all people.  Market research can help.

Networking with the best of them.  Whether it’s Google search, social media, or paid advertising, marketing your business online is a hefty endeavor to achieve successful results. Only data-driven strategies will get you there, and even then, you can find your business knocked down a rung as your competitors aim to stay ahead of the curve.  With this in mind, networking should be part of your “covert ops” marketing strategy to get your business noticed locally and online. Connecting with industry experts, bumping virtual elbows with leading professionals, and attending local events works to build brand awareness on the ground.

Forget the “other guys.”  It’s easy to get sucked into the comparison game, especially when you’re in a foot race against local competitors. Rather than worrying about what “the other guy” is doing, focus on knowing your audience best and tailoring your offer to suit their needs, goals, interests, and struggles.

And Personal branding is everything. 

2 key takeaways from the article

  1. What makes your business different from others? Can you articulate why your customers have chosen you over your competitors? These answers come easily when you know your customer and market the solution to their problem. 
  2. A few of the suggestions are: defining your unique selling proposition, network with the best in your industry, forget the other guy, and personal branding is everything.

Full Article

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Topics: Entrepreneurship, Competition, Business Growth 

How the 10 Masks You’re Still Wearing Hurt You and Your Business 

By Iona Holloway | Entrepreneur | July 14, 2021

Wearing a mask started with Covid and will end, hopefully, with Covid.  Right?   Wrong!

We’ve worn a mask that impacts our careers, relationships and sense of self long before a global pandemic forced us to learn how to smile with our eyes. But the author is not talking about non-breathable cloth prisons and more importantly, how do we take them off?

Growing up, we find ways to control the ways others experience us to reduce the chances of getting hurt. A mask is a defense mechanism or coping strategy we develop to ensure security, safety and love. Masks have an energetic quality to them; they’re our attempt to force people to feel a certain way about us or treat us in a particular way. The article offered ten common masks, five of these are:

  1. The Sled Dog.  Some people guarantee their survival by making their value visible and undeniable. At work, the Sled Dog is the first to arrive and last to leave. Working “the hardest” is a smart way to impress people, and validated by our societal definition of success, but the extreme effort is rooted in feeling unworthy, unloveable or even like a disappointment. Acting like a Sled Dog can also have severe health implications.
  2. The Perfectionist.  The Perfectionist doesn’t care about doing good work. He cares about doing perfect work, a common response to the fear of annihilation. Trying to be perfect manufactures a false sense of dominance, safety and control; it’s a way to mitigate the anxiety of what might happen if we don’t cover all bases. Perfectionism creates a rigid, fearful life that is often painful to inhabit.
  3. The Martyr.  Selfless actions are underpinned by the exaggerated and loud vocalization of sacrifice. The Martyr has the ability to make her or himself indispensable.  The Martyr picks up all the terrible jobs no one else wants to do, then subtly tells everyone how she didn’t sleep or eat all week.
  4. The Bully.  The playground definition of the Bully holds; those who were made to feel powerless become the ones who pin others down. The Bully controls his environment and other people through dominance, a response to deep-seated fragility or fear. At some point, all Bullies have felt powerless.
  5. The Doormat.  The Doormat is a relentless people-pleaser. He abandons his thoughts, beliefs, values and needs to make sure someone else is happy, which is often a response to having his needs systematically ignored or invalidated.

How do you take a mask off?  Start with awareness. Reflect on how you got attention or were validated growing up; you’re applying this same success blueprint through the masks you’re most commonly wearing.

3 key takeaways from the article

  1. We’ve worn a mask that impacts our careers, relationships and sense of self long before a global pandemic forced us to learn how to smile with our eyes.
  2. The ten masks are:  the sled dog, the perfectionist, the martyr, the bully, the doormat, the control freak, the robot, the sour skittle, the drama king and the comedian.
  3. Continuing to wear a mask without challenging it, especially when it’s causing personal disconnection and pain, is the equivalent of bringing our favorite childhood snake toy to meetings for emotional support. It’s time to evolve. 

Full Article

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Topics:  Personality Development. Entrepreneurship, Leadership