Informed i’s Weekly Business Insights

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Extractive summaries and key takeaways from the articles carefully curated from TOP TEN BUSINESS MAGAZINES to promote informed business decision-making | Since 2017 | Week 371, October 18-24, 2024 | Archive

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America’s economy is bigger and better than ever

The Economist | October 17, 2024

3 key takeaways from the article

  1. Over the past three decades America has left the rest of the rich world in the dust. In 1990 it accounted for about two-fifths of the GDP of the G7. Today it makes up half. Output per person is now about 30% higher than in western Europe and Canada, and 60% higher than in Japan—gaps that have roughly doubled since 1990. Lately, China too has gone backwards. Having closed in rapidly on America in the years before the pandemic, its nominal GDP has slipped from about three-quarters of America’s in 2021 to two-thirds today.
  2. Innate advantages play an important role. America is a big country blessed with vast energy resources. The enormous size of its consumer and capital markets means that a good idea dreamt up in Michigan can make it big across America’s 49 other states.  Yet good policy has been important, too.   This combination of factors has fuelled a powerful virtuous cycle. America’s dynamic private sector draws in immigrants, ideas and investment, begetting more dynamism.  This record is now in jeopardy. As America has become more partisan.

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(Copyright lies with the publisher)Topics:  USA, Economic Development, G7, China, GDP, Private Sector, Natural Resources, Consumer Market

Germany’s lost decade: How the Fortune 500 Europe giant is flirting with long-term irrelevance

By Ryan Hogg | Fortune Magazine | October 23, 2024

3 key takeaways from the article

  1. For most of the 21st century, economists and neighboring countries have looked to Germany with admiration and envy as it managed to weather economic storms with relative ease, capitalizing on trade with growing economies and expanding the power of its industrial giants in the process.
  2. However, a shifting world order has pulled the carpet out from underneath Germany. The industrial quirks, largely manufacturing, that once helped it outgrow its European peers are fast becoming a burden, and crisis after crisis has exposed a lack of planning at the top of government.
  3. There are few easy options for Germany to climb out of its structural and cyclical holes and hold on to its spot as Europe’s biggest economy.  There is a high risk that Germany wakes up too late, but it remains the largest economy in Europe. There is still relatively good infrastructure, so it still has the potential to be stronger 10 years from now than it is right now.

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Topics:  Germany, Economy, Gross Domestic Product, Recession, Europe

Developing Countries Can’t Count on Manufacturing to Supercharge Growth

By Kai Schultz and Shruti Srivastava | Bloomberg Businessweek | October 21, 2024

3 key takeaways from the article

  1. Factories in Bangladesh employing legions of workers to produce goods for export, at wages that are low by Western standards but relatively generous in local terms – the growth strategy dozens of countries have followed in recent decades. That model has more than tripled the size of Bangladesh’s economy, turning subsistence farmers into textile workers for brands from Adidas to Zara—what the World Bank calls one of the “greatest development stories” of our time.
  2. However, upon closer inspection, the seams of that model are fast coming undone – automation has to blame which is replacing automatic machines with humans at the rate faster than expected.  So the playbook of export driven manufacturing in a free market global economy is less and less able to generate the economic expansion poorer countries need to raise standards of living.
  3. No clear alternative has emerged for developing countries seeking to get rich. Those that are doing relatively well, like Romania, have combined advantages such as a sizable market and access to resources with low taxation and a diversified industrial base.

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Topics:  Global Economy, Manufacturing, Services, Poverty, Employment

The art of 21st-century leadership: From succession planning to building a leadership factory

By Bob Sternfels et al., | McKinsey & Company | October 22, 2024

2 key takeaways from the article

  1. Leading a global organization in today’s fragmented world is difficult—perhaps more difficult than ever.  There is a compounding and interconnected effect across all disruptions—and less and less time for leaders to react to them.  As the world grows more complicated, so must our perceptions of and approaches to leadership development.
  2. One of such approach comprises of required leadership traits, several best practices, and leadership development or succession efforts. Six leadership traits are most needed to excel in today’s uncertain environment: Positive energy, personal balance, and inspiration; Servant and selfless leader; Continuous learning and humble mindset; Grit and resilience; Levity; and Stewardship.  Some of the best practices the organizations to follow are:  Engage—rigorously and relentlessly—with all key stakeholders; Enroll (and reenroll) the team; Build an operating model—and establish an operating cadence—that’s wired for speed; and Emphasize a culture of trust. And the leadership development curricula should comprise of:  set leadership attributes; Don’t wait—get started now; Rethink how to build capabilities at scale; Lead self before others; and Empower leaders to build their own personalized, self-driven learning journeys.

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Topics:  Leadership, Leadership Planning, Leadership Succession, Teams, Talent, Learning

Turn Employee Feedback into Action

By Ethan Burris et al., | Harvard Business Review Magazine | November–December 2024 Issue

3 key takeaways from the article

  1. Enhancing how a company supports and engages its employees can attract talent, improve retention, spur innovation, and increase customer satisfaction.  The problem for many leaders is that when they ask what employees think, they don’t know what to do with what they hear—they often struggle to translate all this input into meaningful insights and concrete actions. 
  2. The authors’ conversations revealed that companies—which together employ more than 2 million people across sectors including technology, financial services, and consumer goods—face seven common challenges:  Making Sense of All That Data, Making Sure Employees Feel Heard, Identifying the Actual Underlying Problems, Protecting Employee Privacy, Navigating Conflicting Views, Not Burying Bad News, and Providing Meaningful Follow-up.
  3. Protecting employee privacy, navigating conflicting viewpoints, and addressing even unpleasant feedback are crucial for fostering a culture of open communication. Ultimately, success lies in empowering leaders to translate insights into concrete actions, effectively communicating progress, and fostering a continual feedback loop that values and respects the diverse voices within the organization. 

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Topics:  Leadership, Listening to employees, Employees Feedback, Research Qualitative Research, Quantitative Research

Make Character Count in Hiring and Promoting

By Mary Crossan | MIT Sloan Management Review | October 22, 2024

3 key takeaways from the article

  1. It’s been said that we hire for competence and fire for character. Missing from the conversation is the recognition that what’s needed is a leader with strong character-based judgment. 
  2. Based on research three key lessons.  One, Understand the Differences Between Competence and Character ( character comprises 11 interconnected dimensions, with an associated set of observable behaviors:  transcendence, drive, collaboration, humility, humanity, integrity, temperance, justice, accountability and courage.  Two, Conducting Character Interviews.  The following should be considered  prepare for character interviews by developing your own character, Treat a character interview as a conversation, Understand that the interviewer’s character is revealed as well as the interviewee’s, use probing questions, observe the clusters of dimensions and their strengths and weaknesses, look for signs of strengths and weaknesses in interviewees’ stories, observe whether integrity and humility are on display, choose two to four interviewers, determine the overall strength of character development based on the interview, and provide feedback to the candidate after a character interview.   And three such assessments are equally important when it comes to promoting individuals.

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Topics:  Leadership, Character, Hiring, Promotion, Leadership Development

13 Tips For Managing Employee Morale During Major Internal Change

By Forbes Communications Council | Forbes Magazine | October 23, 2024

2 key takeaways from the article

  1. Employees can often struggle when companies make big changes internally. Whether it’s a revamp of the company’s main tools and processes, changes in leadership or even a pivot in the company’s goal or strategy, changes like these can make employees uneasy, as they question how the changes will impact their day-to-day work or their security within the company.
  2. Before communicating your big news to your team, consider the following advice on how internal comms pros can best manage employee morale during times like these, as recommended by the members of Forbes Communications Council:  Be Clear About What Employees Can Expect, Ensure Your Message Is Consistent, Use Touchpoints To Focus On The Bright Spots, Provide Opportunities For Two-Way Feedback, Use Positive Energy To Get People Excited, Emphasize The Bigger Picture, Empower Managers And Other Leaders With Messaging, Offer Something Tangible To Encourage Positivity, Approach Communication With Empathy, Ensure The Executive Team Plays A Key Role, Leverage A Holistic Change Management Strategy, anad Foster An Environment Of Open Communication.

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Topics:  Leadership, Change Management, Transformation, Trust, Teams, Communication

10 Universal Truths You Must Remember to Boost Customer Sales 

By Martin Zwilling | Inc Magazine | October 24, 2024

2 key takeaways from the article

  1. Customers are overloaded and overwhelmed by too much information, so making any decision is a challenge. You may think this is only important to your marketing and salespeople, but in reality, it doesn’t matter how great your product or technology might be, you won’t succeed if you don’t understand your target customer’s decision process. Every aspect of your business must be about sales.
  2. Everyone on your team needs a regular update on the latest insights for salespeople, like the classic book Heart and Sell, by sales training expert Shari Levitin.  Levitin outlines 10 universal truths about selling, and the customer decision process which every business needs to address in their product, business model, and their whole customer experience. These truths are: success requires continuous learning and improvement, emotions drive customer decision-making, every growth business must have a repeatable process, resilience is the life skill of a business, business brand trust begins with customer empathy, integrity matters in all aspects of a business, grow by helping customers rather than pushing a message, emotional commitment precedes economic commitment, removing customer resistance takes persistence, and looking for wrongs never makes you right.

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Topics:  Entrepreneurship, Startups, Trust, Selling, Sales People, Sales Techniques

Your Business Will Get Left Behind If You Ignore These 7 Content Writing Trends

By Ron Lieback | Edited by Kara McIntyre | Entrepreneur Magazine | October 24, 2024

3 key takeaways from the article

  1. The world of content writing has evolved beyond just slapping words on a page and waiting for the Google gods to bless you with traffic. With Search Generative Experience (SGE) and other AI tools, the content landscape in 2024 has reached a new frontier where creativity must be combined with strategy, SEO has grown smarter and audiences are more discerning than ever.  If you’re not adapting your content strategy, you’re falling behind.  
  2. 7 critical content writing trends you need to pay attention to if you want to dominate the market in 2024 and beyond: AI-assisted writing: It’s here to stay — but you still need humans; hyper-personalization is no longer optional, SEO is smarter, so you need to be, too; video and interactive content are king; authority and trustworthiness matter more than ever; long-form content is making a comeback; and voice search and conversational content.
  3. Your content strategy is no longer just about keywords and clicks — it’s about engagement, authority and providing real value. 

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Topics:  Marketing, SEO, Startups, Content Marketing, Entrepreneurship