How to Build Strategic International Relationships

Just learning how to shake hands doesn’t make you culturally aware. A few learned copy-cat mannerisms and a couple opening lines will not put the global executive into the good graces of their regional leaders. It used to be fine, considering the small amount of time that leaders spent abroad. But more and more, as we see top-level local management strategies that have transparent relationships with each other for alignment and success, building relationships that are strong and solid are absolutely essential in today’s highly competitive marketplace.

In Japan, during the 1980’s boom years, foreigners were falling over each other to grab some of the success that Japanese businesses had created. Many managers learned a little bit of the language, how to eat soup, etc., but they missed a great opportunity to build real bonds. Unfortunately, those bonds could have also helped the Japanese businesses during the ‘90’s.

Today, we are in the midst of a series of dynamics such as, rising new economies, immediate access to customers and speed decision making, so creating and nurturing long lasting connections is a must. Maya Hu-Chan of the Global Leadership Development Center so correctly states, ‘In my work with multinational corporations, my global clients have often pointed out that building partnerships is one of the most important competencies for global leaders of the future’.

To develop powerful partnerships and prevent problematic situations, integrate these five pieces of advice.

· Have a real interest in other cultures and learn about them through food, the arts and music, literature and the areas that give uniqueness to their place the human experience.

· Build partnerships wherever you go with ease. You never force a friendship. You develop it. Become an open access point of assistance to your host reports, superiors and especially those horizontally. Encourage others to do the same.

· Listen, Listen, Listen! This may be one of the great challenges for human beings, but it is an essential skill for trust. Don’t just listen with your ears, but apprehend the individual with all of your faculties. Go beyond their special behaviors and reach for what they are trying to communicate.

· Never be patronizing. This may be very difficult for some cultures that have been taught they are the best. Be careful not to appear paternal or on a higher level than other people. Also pay close attention to how you phrase comments about their culture. This is also true for spouses of expatriates.

· Get out of your shell. The higher you go up in an organization, the more insulated you become. Mingle with different people with different interests and you will be well prepared to meet the exciting challenges of interacting with all types of personalities from all over the world.

By putting these five points into action will give you a basis for working in all environments and with all cultures. Of course, each culture has unique aspects that give them their own perspectives on business and life, and we are all unique individuals with unique behaviors, but having a real sense of how we can make deeper connections profoundly helps us move forward together.

The Dollar: Soon to Swoon?

Reports of the demise of the U.S. dollar may be premature. But when some of the world's most powerful investors are warning of the currency's decline, investors take notice.

Berkshire Hathaway (BRKA) Chief Executive Warren Buffett warned in a New York Times op-ed on Aug. 19 that the U.S. debt load threatened to turn the U.S. into a "banana republic economy."

A flood of greenbacks from the Federal Reserve and the Obama and Bush Administrations may be necessary now to prop up the ailing economy, Buffett said. But the government must control its debt in the future—or risk the consequences.

"The dollar's destiny lies with Congress," Buffett wrote.

On Aug. 20, the head of the world's largest bond fund, Pimco Chief Executive Mohamed El-Erian, sounded as though the dollar's decline were a foregone conclusion.

"The question is not whether the dollar will weaken over time, but how it will weaken," El-Erian told Bloomberg, echoing Pimco founder Bill Gross, who has said the dollar could lose its status as the world's reserve currency. "The real risk is that you will get a disorderly decline," El-Erian said.

The Dollar as Safe Haven

The problem with such bold pronouncements is that the currency markets are notoriously unpredictable. An accurate currency forecast makes a correct stock pick look easy, as it requires foresight into economics, trade flows, capital flows, politics, and market psychology—all on a global scale.

In the late 1980s many worried the U.S. dollar was losing out to the Japanese yen and other world currencies. But those worries were quickly forgotten in the 1990s as U.S. deficits narrowed and growth heated up.

Last fall the value of the dollar spiked as the world sought refuge in its strongest currency. That had little to do with economic fundamentals. Ironically, it was a U.S.-born financial crisis that was causing investors to push their assets into U.S. dollars.

Impact on Commodity Prices

"It's in nobody's interest to see a substantial weakening of the dollar," says Brian Dolan, chief currency strategist at Forex.com, a division of Gain Capital Group. Yes, a weaker dollar would help American manufacturers sell goods overseas, increasing U.S. exports and allowing U.S. companies to report stronger profits from abroad.

But a weaker buck would hurt global businesses that import into the U.S. And a softer dollar usually increases prices of commodities, such as oil, which are bought and sold in dollars. "If the dollar were to weaken, commodity prices would increase fairly rapidly," Dolan says. In the U.S., "that would hamper a consumer-led recovery."

In the longer term, panics and politics may be less important for the dollar's future than economic fundamentals. This is Buffett's point, with his concern about America's fiscal situation. It's also reflected in worries that the U.S. dollar is losing its preeminent status among global currencies.

Counter Influences

One counterpoint to these concerns is the reality that currencies trade on a relative basis. "We're not alone in running up these massive deficits," Dolan says.

Also, as many observers have pointed out, the rush into dollars during the financial crisis demonstrated that, for now, there are no viable alternatives to the U.S. dollar as the world's preeminent currency.

Though inflation could hurt the U.S. dollar, economists and other observers say it's difficult, perhaps impossible, to suffer inflation in an economy hit this hard by an economic downturn.

"There is no present danger of inflation," says University of Virginia professor Herman Schwartz, author of Subprime Nation: American Power, Global Capital, and the Housing Bubble. With so many factories idled and so many Americans out of work, the economy has plenty of excess capacity before inflation starts to threaten the dollar's value. "We've got a long way to go before we get there," Schwartz says.

Longer-Term Danger

That doesn't mean Buffett wasn't right to warn investors and policymakers that inflation could eventually sap the value of the dollar. Schwartz sees Buffett's editorial as a "warning shot across the bow of the Administration."

The federal government needed to pump money into the economy, says Cornell University professor Jonathan Kirshner. "We did the right thing and prevented the economy from totally cratering," he says. "But this leaves in its wake serious issues."

The solution to the heavy U.S. debt load isn't to slash spending or hike taxes now, he says. Doing so would hurt the economy. Rather, President Barack Obama needs to show over the next couple of years a "path to sustainability"—a plausible scenario whereby the U.S. can begin to pay off the big bills racked up in 2008 and 2009.

The future of the U.S. dollar may well be determined by simple, big-picture questions: What will U.S. inflation or economic growth look like, relative to other countries? But the currency markets are also places where subtlety and nuance matter. For example, a gradual decline in the dollar would do less damage than a rapid drop—and might even help parts of the U.S. economy in the process.

Like other investors, Buffett is hoping that Obama and other policymakers have the requisite skill to navigate an economy beset by ballooning deficits and subpar growth without doing damage to the U.S. currency. That will be a tall order.

Get more than just "a presence" on the Internet

The water purification salesman had been talking to us for what seemed like hours. During a lull in his monologue, I asked if he had a website.

"Yes. In fact, we are the only independent distributors of this product who does," he proudly beamed.

"So you get a lot of leads from the website, then?" I asked.

"No, actually I don't think we've gotten a single lead from it," he replied.

"Then why do you have a website?" I wanted to know.

"To have a presence on the Internet."

A few days later, our home inspector was giving us an update on the state of our house. We had bought it a few years earlier in winter, when snow was on the ground and on the roof, and we thought an update would be a worthwhile investment.

"Do you have a website?" I asked.

"Yes, I do. But, I don't think a single customer found me that way."

"Then why do you have a website?" I asked.

"To have a presence on the Internet."

A lot of entrepreneurs and small businesses are sold on paying for a website because it is important to have a presence on the Internet. For many businesses, that is true. But what does "a presence" mean?

Would you open up a store in the corner office of the fifth floor of an office building, or would you open it up in the mall?

Would you leave the windows bare, or would you fill the windows with merchandise and open the door to make your store inviting?

Would you ignore customers when they enter the store, or would you carefully place merchandise and staff to maximize the revenue from each visit?

"A presence" is only valuable if the website serves a purpose, if it fulfills its goals. Just sitting there, somewhere in cyberspace, is not a sound business strategy. An experienced website marketing consultant can help you determine what goals, if any, are viable for your business website.

Here are a few of the goals you might want for your website:

Online pamphlet.

If you connect with customers by telephone, this is an ideal way to instantly deliver a pamphlet to them. No mailing, no delays, they can even call up your information while you are on the phone with them. This website has to look credible and be choc full of information.

Credibility booster.

If you are selling a big ticket item, particularly one that requires a good reputation, a website can help. This website should look upscale and focus on credibility-boosting content. It is ideal for speakers, consultants and other business-to-business service providers.

Lead generator.

One excellent use for a website in many non-retail businesses is as lead generator. The idea is to funnel traffic (website users) into the site and lead them to take action. Such action might be to call you, to request a brochure, to request a free sample, etc. The main requirement for this is the maximum amount of targeted traffic possible, of people interested in what you have to offer.

By way of example, my marketing website serves these first three goals: online pamphlet, credibility booster and lead generator.

Email Address Gatherer.

This is really a form of lead generation, but it is unique in that you are not trying to sell through the website, but through an email newsletter (also called an ezine). The website is there primarily to pique interest, and the newsletter is there to build affinity and trust in order to make the sale. You need to have a newsletter set up, and you need targeted traffic.

By way of example, my personal growth website serves this goal, attracting subscribers to my Daily Dose of Happiness.

Sell.

Of course, if you sell hard goods, electronic goods or even many services, you can make the sales right online. You need some form of payment gateway and/or shopping cart, and your website needs to be able to make the sale from start to finish, which is not always easy. Of course, you also need customers in the form of targeted traffic.

By way of example, my liquid vitamins website serves this goal.

What you want your website to achieve should dictate the look, the structure, the content, the writing style and whether or not the site is optimized for the search engines. Before investing any more money of time in your website, invest the time required to determine the goals you want your website to achieve.

Or you could be like that water salesman or my home inspector, satisfied with having "a presence". Of course, many people go through life having "a presence" on Planet Earth, but most entrepreneurs I have met are go-getters. If "a presence" is not good enough in the real world, why settle for it in the online world?

A website should be an investment, not a cost. If your website is not working for you, or if you feel your business should have a website, determine realistic and useful goals, then set your website up to achieve them.

Maybe you don't need a website at all. Or maybe your website could double your profits. Either way, don't let it sit there gathering dust somewhere in cyberspac

Conflict & Cooperation In The Workplace

One topic that is of interest to most people in the workplace is conflict; how it works, how to avoid it, and how to deal with it when it occurs. It is indeed the rare organization that doesn't have to face the issue of conflict, and how to harness it so that it produces positive results rather than destruction.

In this article, we are going to look at some important elements of conflict, how it escalates over time, and suggest a few general strategies for dealing with it.

Two Types of Conflict

In the workplace (and almost any setting), you are likely to find two forms of conflict. The first is conflict about decisions, ideas, directions and actions. We will call this "substantive conflict" since it deals with disagreements about the substance of issues. The second form, "personalized conflict" is often called a personality conflict. In this form, the two parties simply "don't like each other much".

Substantive Conflict

Substantive conflict can occur on just about any issue, but its moving force is that the two parties simply disagree about an issue. This can be a good thing or a bad thing. Handled correctly parties in conflict can create, for themselves and those around them, the ability to resolve an issue with something creative, something better than either party's original position. Let's look at an example.

A branch manager and a staff member are in conflict over work hours. The branch manager expects all staff to work standard hours, beginning at 8:00 am so that the public will receive service startingfirst thing in the morning. The staff member wants to begin work at 9:00 am, because he has child careresponsibilities. On several occasions the staff member has arrived late, which makes it appear to the manager that the employee is being deliberately unwilling to follow the rules.

Rather than the situation deteriorating, the parties approach the situation, not as one that should be won, but with an eye on solving a problem. After discussing the situation, (and understanding each other's needs), they realize that a) almost no customers call in the early morning b) the few that do can be handled by other staff who like to be in at 8:00, and b) there are more customers calling in between 4:00 and 5:00 pm. The parties agree that it makes sense to modify work hours. The result: a happier employee and better service.

The benefits would never have occurred if this conflict hadn't occurred, or if either party played the situation as if it was a game to be one by one person or the other. (Did anybody really lose in this situation?).

Personalized Conflict

While substantive conflict, if handled correctly, can be very productive, personalized conflict is almost never a good thing. There are several reasons. First personalized conflict is fuelled primarily by emotion (usually anger, frustration) and perceptions about someone else's personality, character or motives. When conflict is personalized and extreme each party acts as if the other is suspect as a person. Second, because personalized conflict is about emotion and not issues, problem solving almost never works, because neither party is really interested in solving a problem...in fact, in extreme cases, the parties go out of their ways to create new ones, imagined or real. Third, personalized conflicts almost always get worse over time, if they cannot be converted to substantive conflict. That is because each person expects problems, looks for them, finds them, and gets angrier.

Let's look at the previous example but change the way the situation was handled.

When the branch manager approached the staff member about the tardiness, he showed his irritation plainly. The staff member, already feeling under the gun, felt that the manager was being unfair, and accusatory, and became defensive. This, in turn, resulted in the manager "laying down the law", andthat was how the situation was left. After the discussion, the manager felt the employee was lazy and making excuses, while the employee felt the boss was out to get him.

Not surprisingly, the situation got worse. Even when the staff member was a few minutes late, for good reason, the boss jumped on him like a "ton of bricks". The employee, angered and frustrated, started taking longer coffee breaks and was away "sick" more frequently. The situation became increasingly polarized, with other people being sucked in, and taking sides, privately.

Oddly enough, the initial perceptions of both bossand employee became the truth. After a while the boss acted as if he was out to get the employee, and the employee acted as if he was lazy and uncaring. The original issue was all but forgotten, as the parties developed an intense dislike of each other.

Solution Strategies

Identification

When involved in a conflict situation, it is important that you are aware of whether you and the other party are dealing with a substantive conflict or a personalized one. It isn't always easy to tell them apart, and it is difficult to look honestly at oneself. Ask yourself the following questions:

Do I dislike the other person or get frustrated with him/her?

Do I see the other person as untrustworthy, and undeserving of respect?

Is my emotional reaction to the conflict appropriate to it's seriousness or lack thereof?

Do I really want to "win"?

If the answer to any of these question is yes, you may be setting yourself up for a personalized conflict that nobody can win in the long term.

With respect to the other person, one good indicator of a personalized conflict situation is that the person will try to counter your substantive point on the issue with a series of DIFFERENT reasons why you are wrong. For example, let's look at the following dialogue.

Manager: We can't have you come in at 9:00 am because we need to answer the phones.

Employee: That makes sense, but I checked and we get only one or two calls between 8:00 and 9:00 but we get between ten and twenty calls in the later afternoon.

Manager: Well, maybe, but if you come in later, then soon everyone else will want to...

Note that in this case, the manager isn't really problem solving, but trying to find reasons to refuse the request, either because he doesn't "like" the other person, or for some other emotional reason we don't know about.

Move To Substantive Issues

Even in situations where both you and the other party have personalized the conflict, you can work to focus on specific issues. You have not direct control over another person, but you have control over yourself. By moving to the issues, and staying there, you will also encourage the other person to do so.

It isn't easy, of course. The trick is to try to put aside your negative perceptions about the other person, and not to dwell on them. That's an internal thing. Every time you think to yourself "what an idiot"(or all the other negative things), you make it that more difficult to stay focused on problem- solving, rather than winning, or getting your own way.

Work To Personalization

It is rare that personalization occurs just on the basis of two incompatible personalities. Usually, personalization occurs because conflict on substantive issues is handled badly. That is, one or both parties behaves in non-cooperative ways.