Category: business advice

  • Incurious George and the cult of managerialism

    Incurious George and the cult of managerialism

    “Do you not read papers?” Thundered the BBC’s John Humphrys to the corporation’s Director General during an interview over the broadcaster’s latest scandal.

    That exchange was one of the final straws for the hapless George Entwhistle’s 54 day leadership of the British Broadcasting Corporation where the Jimmy Savile scandal had seen him labelled as ‘Incurious George’ for his failure to ask basic questions of his subordinates.

    Humphry’s emphasised this when discussing the Newsnight program’s advance notice of the allegations they were going make;

    You have a staff, but you have an enormous staff of people who are reporting into you on all sorts of things – they didn’t see this tweet that was going to set the world on fire?

    A lack of staff certainly isn’t the BBC’s problem, the organisation’s chairman Chris Patten quipped after Entwhistle’s resignation that the broadcaster has more managers than the Chinese Communist Party.

    George Entwhistle’s failure to ask his legion of managers and their failure to keep the boss informed is symptomatic of modern management where layers of bureaucracy are used to diffuse responsibility.

    In every corporate scandal over the last two decades we find the people who were paid well to hold ‘responsible’ positions claimed they weren’t told about the nefarious deeds or negligence of their underlings.

    Shareholders suffer massive losses, taxpayers bail out floundering businesses and yet senior executives and board members happily waddle along blissfully content as long as the money keeps rolling in.

    If it were just private enterprise affected by this managerialism then it could be argued that the free market will fix the problem. Unfortunately the public sector is equally affected.

    Managerialism infects the public service as we see with the BBC and it’s political masters  and the results are hospital patients die, wards of the state abused, known swindlers rob old ladies and agencies continually fail to deliver the services they are charged to deliver.

    Again the layers of management diffuse responsibility; the Minister, the Director-General and the ranks of Directors with claims to the executive toilet suite’s keys are insulated from the inconvenience of actually being responsible for doing the job they are paid to do.

    Managerialism and incuriousity are fine bedfellows, in many ways Incurious George Entwhistle is the management icon of our times.

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  • Social media’s free ride comes to an end

    Social media’s free ride comes to an end

    One of the mystifying things about the ways businesses use social media is the willingness of companies – big and small – to give their customer lists away to social media sites.

    The best example of this is Facebook, when your customers like you or comment on a post they are added to the service’s database. Facebook gets to ‘own’ your customers and generally Facebook gets to know your customers better than you do.

    With the arrival of Sponsored Stories on Facebook we see the next step which monetizing their business functions. Now when a business puts a post up on Facebook, it only appears in 15% of their followers’ feeds. To get to the rest of them a business has to buy a sponsored story.

    Not only has Facebook taken ownership of thousands of businesses’ customers, it now charges those business to talk to their own clients.

    Should the business decide not to pay for sponsored stories then they find traffic from Facebook drops off. Some businesses report traffic dropping from 30,000 views a day to 5,000.

    To counter this one website stumped up the money for a sponsored story that advises their Facebook fans to follow them on Twitter and Google+ instead.

    Facebook’s move on this isn’t surprising as they desperately search for revenue streams to justify their huge stockmarket valuation.

    What also isn’t surprising is that the free ride for businesses on social media platforms is over.

    All too often we’ve heard marketing gurus tell us Facebook and other social media services were free advertising channels.

    That view overlooked the time and patience required for executing an effective social media campaign along with the reality that social media services were only free for as long as the investors underwriting the enterprise were prepared to accept losses.

    We understand that advertising on TV, radio or print costs money and now we’re having to accept that social media marketing costs as well.

    How well Facebook goes with sponsored stories remains to be seen, but the message for businesses is clear – the social media free lunch is well and truly over.

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  • Beware the business trolls

    Beware the business trolls

    “A psychopath will enter everyone’s lives at one time. When yours arrives, your job is to get them out of your life as quickly as possible.”

    That little gem was handed down to me before the internet gave everyone a global megaphone to entertain themselves with. Today it’s likely a dozen psychopaths a week could enter your life through the web or social media.

    One of the manifestations of this ability for anyone to post to the web regardless of merit or sanity has given rise to the phenomenon of “trolling”, of which there has been much recent media attention.

    At its most basic, trolling is about getting attention. The troll hopes to get a reaction from something outrageous they’ve said or done. In that respect they aren’t too different to radio talk back hosts or SmartCompany editors.

    Business has its own types of trolls: the ‘squeaky wheel’ who hopes that by making a complete pain of themselves you’ll succumb to their unreasonable demands; the perennial tyre kicker who wastes your sales staff’s time; or the late payer who enjoys toying with you and your accounts people but has no intention of ever paying the bill.

    The effects of these business trolls can be just as debilitating as an online troll, with the added bonus that they distract you and your employees from getting work done.

    Sometimes the business owner makes the mistake of taking things personally. This often happens when a bad debtor upsets us so much we make it our life mission to get what we deserve to be paid.

    Hundreds of hours and thousands of dollars later we surrender and accept we were never really going to get that relatively trivial sum.

    The worst of all the business trolls is the recreational debtor. These business psychopaths take delight in ringing up debts they have no intention of paying and then treating your attempts to get the money back as a type of game where they will thoroughly mess with your mind.

    These are the people to get out of your life as quickly as possible. It could be writing off the debt, giving them the refund or just kicking them out of the store.

    So beware of the business trolls, they are as likely to appear in your outstandings file as on your Facebook page.

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  • Australia in the Asian Century – Chapter Seven: Connecting to Asian Markets

    Australia in the Asian Century – Chapter Seven: Connecting to Asian Markets

    This post is one of the series of articles on the Australia in the Asian Century report.

    The seventh chapter of Australia in the Asian Century looks at how the country’s businesses and governments can engage with markets in Asia. In some ways this is the most effective chapter of the report.

    At the beginning of the chapter introduction points out that Asia offers bigger markets than Australia and says “Australian businesses need to build on their existing advantages by developing new capabilities and approaches as they become fully part of the region.”

    This is true, but the Chapter never really identifies what Australia business’ existing advantages really are and again this is a weakness in the report.

    National objective 17. Australia’s businesses will be recognised globally for their excellence and ability to operate successfully in Asian markets.

    How this comes about is difficult to say, and what governments can actually do to help businesses be recognised globally isn’t really identified.

    The CPA case study is notable for illustrating the number of Australian expats working in Asia. In many ways these people are the wasted talents that should have been cultivated by domestic businesses through the 1990s and 2000s.

    Saying that businesses need to be part of the global supply chain is a statement of the obvious and Chapter 7.3 does discuss the importance of efficient ports, fast customs procedures and reduced barriers to trade. This ties into National Objective 18a.

    National objective 18a.The Australian economy will be more open and integrated with Asia, through efforts to improve our domestic arrangements. The flow of goods, services, capital, ideas and people will be easier.

    • Australia’s trade links with Asia will be at least one-third of GDP by 2025, up from one-quarter in 2011.

    It’s difficult to argue with this objective, although one wonders what Canberra has been doing for the last twenty years on smoothing the flow of goods, services, capital and ideas. Hopefully this is one of the relatively easy areas where a Gillard, or Abbott, government can deliver.

    National objective 18b. The Australian economy will be more open and integrated with Asia, through comprehensive regional agreements, better aligned economic regulations, greater infrastructure connectivity and enhanced understanding of each country’s arrangements. The flow of goods, services, capital, ideas and people will be easier and Australian businesses and investors will have greater access to opportunities in Asia.

    This objective focuses around formal trade links and really only describes the current policy – continued from the Howard government – of signing bilateral trade agreements rather than waiting for the cumbersome and possibly never ending global negotiations to actually deliver something.

    Most of Chapter Seven is focused on describing the various trade initiatives the Australian government is engaged in through APEC, ASEAN and various other forums.

    All of these are good initiatives and these are the brightest spot in the entire report, this is where the Australian political system has delivered bipartisan support for a long term plan and it’s a shame we can’t see more actions similar to this in areas like education, taxes and sustainability.

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  • Running out of luck

    Running out of luck

    Last week I was lucky to get along to Digital Australia and Emergent Asia panel held at PwC’s Sydney office where the panel looked at how Australia’s industries are adapting to the digital economy and evolving Australian markets.

    The outlook from the panel was generally downbeat about the ability of Australia’s business leaders and politicians to adapt to the changes in the global economy although there were some optimistic points about the resilience and flexibility of the nation.

    I did a write up for it on Technology Spectator which is online at It’s Not Good Enough To Be Clever

    The challenge is on for Australia’s business leaders – let’s see if they are up to it.

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