Extractive summaries of and key takeaways from the articles curated from TOP TEN BUSINESS MAGAZINES to promote informed business decision-making | Week 263 | September 23-29, 2022
Download this week’s edition in PDF
Download this week’s edition in Audio
Shaping Section : Ideas and forces shaping economies and industries
An energy crisis and geopolitics are creating a new-look Gulf
The Economist | September 22, 2022
The latest oil and gas boom is taking place – courtesy of Vladimir Putin’s war in Ukraine alongside deeper trends: a re-engineering of global energy flows in response to Western sanctions and climate change, and the remaking of geopolitical alliances in the Middle East as it adapts to a multipolar world in which America is no longer a reliable guarantor of security. The result is a new-look Gulf that is destined to remain pivotal for decades to come. Whether it will be a source of stability, though, is far from clear.
The three Gulf energy powerhouses of Qatar, Saudi Arabia and the United Arab Emirates (uae) are autocracies facing a long-run decline in world demand for fossil fuels, even as they suffer from lower rainfall and higher temperatures because of climate change.
It is a daunting starting-point, but two new forces are in play. One is changes in energy markets. At current prices, the six Gulf states—the others are Bahrain, Kuwait and Oman—could earn $3.5trn over the next five years. Western sanctions on Russia are redirecting how energy is traded around the world. The second force at work is a new alignment of power in the Middle East. Over the past decade Iran has established a sphere of influence across a northern belt including Iraq, Lebanon and Syria. A reaction is in full swing as most Gulf states, Egypt, Israel and others grow closer. An obvious implication is that the Gulf is likely to remain as important in world affairs in the coming decades as it was in the 20th century, despite the hopes of some American strategists that its significance would fade.
Yet the one thing the new era may not bring is stability, because the very forces behind these opportunities also create volatility. The quest for a security arrangement that relies less on America could backfire. However, the greatest potential source of instability lies at home. The Gulf states are now trying to follow a mind-bending economic trajectory. They plan to expand fossil-fuel production for 20 or so years and then slash it after 2045. It is possible to see how this would work in theory: the huge rents would need to be quickly reinvested in a high-tech economy based on renewable power, hydrogen and desalination systems, which has enough dynamism to create millions of jobs for a bulge of young people. In practice the task is monumental.
3 key takeaways from the article
- The latest oil and gas boom is taking place – courtesy of Vladimir Putin’s war in Ukraine alongside deeper trends: a re-engineering of global energy flows in response to Western sanctions and climate change, and the remaking of geopolitical alliances in the Middle East as it adapts to a multipolar world in which America is no longer a reliable guarantor of security.
- The result is a new-look Gulf that is destined to remain pivotal for decades to come.
- Whether it will be a source of stability, though, is far from clear.
Listen to the Extractive Summary of the Article
(Copyright)
Topics: Middle East, Energy, Geopolitics
Columbia, MIT Explore the Future of Work With New Business School Courses
By Matthew Boyle | Bloomberg Businessweek | September 21, 2022
While businesses figure out how to navigate the future of work, business schools face a different challenge: how to teach it.
Unlike such MBA staples as accounting or marketing, a subject as broad and sweeping as “work” doesn’t easily lend itself to a typical classroom approach. A course could include discussion of such topics as hybrid work schedules, diversity and inclusion, artificial intelligence hiring algorithms, and the rising labor movement at Starbucks Corp. So it’s no surprise that emerging curricula on the future of work will vary widely, depending on the audience (full-time students vs. executives), the instructors (faculty members vs. consultants), and other factors. That doesn’t diminish the importance of addressing the issues; tomorrow’s leaders won’t succeed without understanding the impact their decisions will one day have on workers, be they Wall Street dealmakers or Walmart shelf stockers.
Before the Covid-19 pandemic, the future of work was a niche B-schools topic that focused mostly on debates about when robots would replace humans. “That was the big question in 2018,” says Jeffrey Schwartz, who co-teaches Columbia Business School’s future of work course. Now, it’s less about threats and more about such opportunities as exploring the proper relationship between a business and its workers, or the trade-offs between people and profits.
Given how fast the workplace is evolving—employees that were being wooed a few months ago now fear getting laid off—it’s no surprise that these classes are also changing on the fly. Many that began during the pandemic via Zoom have since shifted to the classroom. At Indiana University’s Kelley School of Business, professor Ernest O’Boyle designed his future of work class to be applicable to anyone, not just aspiring CEOs. Most of the participants are middle managers with nearly a decade of experience in corporate life and who need help with everything from daily decision-making to cultivating the softer skills that will bring promotion.
3 key takeaways from the article
- While businesses figure out how to navigate the future of work, business schools face a different challenge: how to teach it.
- Unlike such MBA staples as accounting or marketing, a subject as broad and sweeping as “work” doesn’t easily lend itself to a typical classroom approach. A course could include discussion of such topics as hybrid work schedules, diversity and inclusion, artificial intelligence hiring algorithms, and the rising labor movement at Starbucks Corp.
- So it’s no surprise that emerging curricula on the future of work will vary widely, depending on the audience (full-time students vs. executives), the instructors (faculty members vs. consultants), and other factors.
Listen to the Extractive Summary of the Article
(Copyright)
Topics: Business Education, Business Schools, Skills, Future of Work
Web3 beyond the hype
By Anutosh Banerjee | McKinsey & Company | September 26, 2022
The past few months have been a rough awakening for many Web3 enthusiasts: the market prices of major cryptocurrencies have declined significantly, the trading volume of non-fungible tokens (NFTs) has slowed, and, most importantly, some pioneers of the space have declared bankruptcy because of failed risk management and misuse of consumer funds. Yet even as the debris continues to fly, business leaders shouldn’t confuse market fluctuations or bad actors with the potential uses of digital assets and the technologies that underlie them.
The core distinctive feature of Web3 is the decentralization of business models. To that extent, it marks a third phase of the internet (hence “Web3”) and a reversal of the current status quo for users. While the first incarnation of the web in the 1980s consisted of open protocols on which anyone could build—and from which user data was barely captured—it soon morphed into the second iteration: a more centralized model in which user data, such as identity, transaction history, and credit scores, are captured, aggregated, and often resold. Applications are developed, delivered, and monetized in a proprietary way; all decisions related to their functionality and governance are concentrated in a few hands, and revenues are distributed to management and shareholders.
Web3, the next iteration, potentially upends that power structure with a shift back to users. Open standards and protocols could make their return. The intent is that control is no longer centralized in large platforms and aggregators, but rather is widely distributed through “permissionless” decentralized blockchains and smart contracts. Governance—and this is one of the trickiest aspects of Web3—is meant to take place in the community rather than behind closed doors. Revenues can be given back to creators and users with some incentives to finance user acquisition and growth.
What does this mean in practice? Essentially, it could mark a paradigm shift in the business model for digital applications by making disintermediation a core element. Intermediaries may no longer be required with respect to data, functionality, and value. Users and creators could gain the upper hand and, through open-source rather than proprietary applications, would have incentives to innovate, test, build, and scale.
Web3 is still a world in the throes of creation. Many issues, including questions around regulation, will need to be resolved before it convincingly scales up to reach mass adoption. Yet the value proposition for consumers at the heart of it—one that unifies data, functionality, and value, and in doing so creates opportunities for new and more efficient forms of applications and asset ownership—is a powerful one. If history is any guide, companies large and small, as well as the public and social sectors, may want to take note of the inroads Web3 is already making and start thinking about responsible ways to interact with it. Incumbents that fail to do so may suddenly find themselves overtaken by a fast-moving set of new technologies, new assets, and new ways of doing business.
3 key takeaways from the article
- The past few months have been a rough awakening for many Web3 enthusiasts. Yet even as the debris continues to fly, business leaders shouldn’t confuse market fluctuations or bad actors with the potential uses of digital assets and the technologies that underlie them.
- How far and how fast these technologies and their uses will spread remains to be seen; the journey is proving bumpy, with ongoing challenges ranging from poor user experience to fraud. Crucially, the regulatory picture for Web3 remains unsettled, with calls for greater clarity on some assets and more consumer protection for funds held in custody.
- Yet understanding the core features of this new digital wave and the potential disruption it could bring remains important for business leaders in a wide range of sectors.
Listen to the Extractive Summary of the Article
(Copyright)
Topics: Technology, Web3, Disruption
Strategy & Business Model Section
Should Your Company Sell on Amazon?
By Ayelet Israeli et al., | Harvard Business Review | (September–October 2022 Issue
Amazon is the most visited e-commerce platform in the United States, with nearly 3 billion visits a month, 200 million global Amazon Prime members, and about $400 billion in annual revenue. Amazon ships products to more than 130 countries, and it is the dominant online retailer in 28 countries. Roughly two-thirds of U.S. consumers start their product search on Amazon. Its fulfillment speed and service quality are trusted and loved by consumers. All these factors make Amazon an essential—and to some brands, a seemingly mandatory—place for companies to, as the saying goes, “meet the customers where they are.” As former Gap CEO Art Peck put it, “To not be considering [selling on] Amazon…would be, in my view, delusional.”
Yet brands face real challenges when selling on the platform—from competing products, third-party sellers, and even from Amazon itself. Additionally, Amazon’s growing advertising business (in which it charges fees for premium positioning in search results, as well as for advertisements on its music and streaming video services and other outlets) has significantly reduced sellers’ margins on the platform. And in an era when companies use customer data to cross-sell, improve existing products, and find ideas for new innovations, Amazon’s walled garden and strict constraints on sharing customer data limit brands’ ability to learn about—and from—their customers.
Many brands have grappled with this dilemma. Nike and Ikea, for example, experimented with selling on Amazon but subsequently stopped. If a customer finds these brands on Amazon today, the products are being offered by third-party sellers, not the brand itself.
Therefore, when making the Amazon decision it is important to understand how competitive and commoditized your product category is and where your brand falls within it. Brands with strong positioning may be able to break through the clutter and thrive on Amazon.
Selling on Amazon does not have to be an all-or-nothing decision. Some brands sell a few products on Amazon while also encouraging customers to buy directly from their own website. This hybrid strategy allows them to use Amazon to build awareness and acquire customers but also drives purchasers to their own website, where margins are typically higher and data collection efforts can be more comprehensive. For best results, companies must make strategic assortment decisions, choosing which products to offer on the platform and which to sell on their own website.
3 key takeaways from the article
- Amazon is the most visited e-commerce platform in the United States, with nearly 3 billion visits a month, 200 million global Amazon Prime members, and about $400 billion in annual revenue.
- Yet brands face real challenges when selling on the platform—from competing products, third-party sellers, and even from Amazon itself. Additionally, Amazon’s growing advertising business has significantly reduced sellers’ margins on the platform. And finally Amazon’s walled garden and strict constraints on sharing customer data limit brands’ ability to learn about—and from—their customers.
- Therefore, when making the Amazon decision it is important to understand how competitive and commoditized your product category is and where your brand falls within it. Brands with strong positioning may be able to break through the clutter and thrive on Amazon.
Listen to the Extractive Summary of the Article
(Copyright)
Topics: Strategy, Business Model, Decision-making
Leading & Managing Section
Broaden Your Influence by Adapting How You Listen
By Nancy Duarte | MIT Sloan Management Review | September 21, 2022
All of us are guilty of having a listening gap at least some of the time. Think of this as the difference between the speaker’s interaction goal — what they’re looking to get from the conversation — and how the listener actually responds. Great listeners adapt the way they listen to help the person speaking accomplish their goals and meet their needs. While you might think there are infinite responses to the question, “What does the person speaking want from me?” there are only four in the workplace:
- To Immerse (when the speaker needs you to absorb without judgment). If someone says, “I’m here to give you an update today,” or, “This is important for you to know,” that’s your cue to be an immersive listener. You can take notes, mentally catalog the information you’re hearing, or ask clarifying questions to confirm what you’ve heard. The speaker’s main goal is for you to be a content sponge.
- To Discern (when the speaker needs help identifying options). When the people we work with aren’t sure what’s going well and what’s not, they are often looking for someone to help them consider the strengths and weaknesses of their situation or project. If the speaker says something like, “I need some feedback on this,” or, “I’m not sure if this makes sense,” that’s your signal to be a discerning listener. You can help the speaker identify red flags and pinpoint positives. You can respond in a way that helps the speaker get unstuck or consider alternative approaches.
- To Advance (when the speaker needs assistance in getting work done). When the people we work with are focused on outcomes or pressed for time, they often need an Advance listener to help move projects and processes forward. If they say, “We need to make a decision on this,” or, “I don’t know how I’m going to get this project done,” that’s a cue for you to be an Advance listener. You can offer a decision, take on some of the work yourself, or assist in delegating tasks to help the speaker get to the finish line.
- To Support (when the speaker needs you to be confidant or cheerleader). Everyone experiences challenges at work as well as victories. Both situations are opportunities to create human connection. Being a successful Support listener means you acknowledge and mirror the speaker’s feelings. If they say, “I’m having a horrible day,” or, “I have the best news,” that’s your cue to be a Support listener. You can respond with words and actions that validate the speaker’s feelings. You are the confidant or the cheerleader, depending on the context and situation.
3 key takeaways from the article
- All of us are guilty of having a listening gap at least some of the time. Think of this as the difference between the speaker’s interaction goal — what they’re looking to get from the conversation — and how the listener actually responds.
- Great listeners adapt the way they listen to help the person speaking accomplish their goals and meet their needs.
- While you might think there are infinite responses to the question, “What does the person speaking want from me?” there are only four in the workplace: To Immerse (when the speaker needs you to absorb without judgment), To Discern (when the speaker needs help identifying options), To Advance (when the speaker needs assistance in getting work done), and To Support (when the speaker needs you to be confidant or cheerleader).
Listen to the Extractive Summary of the Article
(Copyright)
Topics: Organizational Behavior, Communication, Influence, Leadership, Team Building
What Is Compassionate Leadership?
Laurel Donnellan | Forbes Magazine | September 22, 2022
Everyone has the potential to be a compassionate leader and develop their ability to practice compassionate leadership. Compassion fuels positive change. Becoming a more compassionate leader gives you and your organization an advantage. And love fuels compassion, so leading with love and leading with compassion are intertwined. Compassionate Leaders can practice sympathy, empathy and compassion as needed at work. They understand the definitions and distinctions related to each. The 7 C’s of Compassionate Leadership are:
- Contemplative. Take time to pause and deeply reflect, emerging wiser and more self-compassionate.
- Curious. Learn and listen proactively.
- Confident. Believe in their visions and themselves.
- Compassionate. Use influence to prevent and alleviate the suffering of others.
- Collaborative. Empower all stakeholders to use their strengths and be leaders.
- Civil. Demonstrate respect when confronted with differing points of view and other challenges.
- Courageous. Advocate strongly for themselves, their values and their stakeholders.
You need to identify your natural strength from the list and commit to one action you can take this week related to it. Next, determine the most challenging attribute for you and think about one step you can take this week to develop compassion for yourself or others. Repeat.
3 key takeaways from the article
- Compassion fuels positive change. Becoming a more compassionate leader gives you and your organization an advantage. And love fuels compassion, so leading with love and leading with compassion are intertwined.
- Compassionate Leaders can practice sympathy, empathy and compassion as needed at work.
- Everyone has the potential to be a compassionate leader and develop their ability to practice compassionate leadership. Compassionate Leaders are contemplative, curious, compassionate, collaborative, civil and courageous.
Listen to the Extractive Summary of the Article
(Copyright)
Topics: Leadership, Success, Organizational Performance
Entrepreneurship Section
Most Franchises Fail to Scale — But The Ones That Do Succeed All Have These 3 Essential Qualities in Common
By John DeHart | Entrepreneur Magazine | September 28, 2022
Here is a common problem in franchising: You launch a franchise system after building a successful business in your specific industry. Bu 60% of franchisors never sell a single location in their first two years of franchising. Three specific franchising habits that were overwhelmingly present in successful new franchises are:
- Next-level brand and marketing. Many brands simply don’t look professional. And if you don’t look like a sophisticated brand (even when you aren’t yet actually a sophisticated brand), you will face two big challenges: First, you will have a much more difficult time selling franchises. Second, your franchisees will have a harder time getting traction in their local market where no one is familiar with your brand. You need to sell how different your brand in the marketplace. You need to look different, sound different and actually provide a different service from the rest of our competitors.
- Become a franchise sales machine. Very few franchisors have mastered the art and science of franchise sales. You are no longer selling a $1,500 homecare service. You are selling a $150,000 product: a franchise location. That’s a huge difference. Do you know how to sell a $150,000 product? Chances are, you don’t. That is a hard sale. Franchise sales aren’t about getting someone through the process as fast as possible. Instead, they are about making someone feel comfortable and safe and building trust. Trust is the holy grail of franchise sales, and your franchise sales process better reflect this.
- Have your onboarding process locked and loaded. If you want your franchisees to perform and execute from day one, then you need to put a lot of work into crafting your franchisee onboarding system. The first thing you must get right with onboarding is you need to train new franchisees on only the key things that matter in the early days of running their business. Spend a lot of time with your new franchisor clients getting them to answer this important question: “What are the five things your franchisee must have or do to be successful?”
2 key takeaways from the article
- Here is a common problem in franchising: You launch a franchise system after building a successful business in your specific industry. But 60% of franchisors never sell a single location in their first two years of franchising.
- Three specific franchising habits that are overwhelmingly present in successful new franchises: they looked like a sophisticated brand that cut through the clutter in the market, they made franchisees feel comfortable and safe and build trust, and they train new franchisees on only the key things that matter in the early days of running their business.
Listen to the Extractive Summary of the Article
(Copyright)
Topics: Franchise, Business Model, Strategy, Startup, Entrepreneurship
Leave a Reply
You must be logged in to post a comment.