Want to Thrive in Today’s High-Speed, Hypercompetitive Business World? Teach Your Management Team to Iterate.

StrategyDriven Talent Management ArticleWhen boiled down to its essence, management is a system of managers, operating in concert, constantly adjusting resources based on new information coming in to keep the business on target. It involves coordinating complex efforts, enabling group work and constantly asking the question, “What’s the next most intelligent step from here?”

In other words, management is the feedback system of the organization. And managers who continually ask themselves and their teams what that next logical step to be taken is – and then take it, learn from it and repeat the process – are Iterating.

Iteration is the way effective systems solve problems whose solutions are too complex to be predefined. Just look for the highest?performing entrants in any given market space. Chances are they’re Iterating.

An organization that Iterates moves the right information up and down the hierarchy, in regular and useful ways, in support of good decisions. It doesn’t get stuck in an overly rigid plan, but instead stays flexible as it pursues clearly defined outcomes.

If you want to run a fast, flexible, focused management team, use these five key practices:

1. Output and Status Broadcasting. Managers must be crystal clear with themselves and each other about what they’re doing. They do this verbally via Verbalized Summary Outputs (the VSO), and they do it graphically with Pragmatic Dashboards. The VSO is a list of statements summarizing the output the manager will deliver to the organization into measurable, countable outputs – three to seven items that, together, account for roughly 80 percent of his or her results. The list should take 60 – 90 seconds to say out loud in a meeting. VSOs confirm alignment and provide a line of sight into how each manager’s (and thus each team’s) work impacts the bigger picture.

A Pragmatic Dashboard turns the verbal information of the VSO into graphic information, one graph per VSO item to avoid unnecessary data. The graphs are summaries of measurable output that include historical data on past performance, along with two futures: the planned future alongside what’s now expected. With these in hand, aimless monologues transform into specific discussion about the future because everyone can see what’s not going to go as expected.

2. Work PreView Meetings. In an Iterative organization, Work PreView Meetings are the regular meetings between a manager and his or her direct reports. They have a consistent rhythm that involves providing information, making decisions and ensuring plans are carried out with regularity. Meeting leaders strive to maintain a forward-looking orientation so that discussions of status are minimized and the focus is on “What’s going to happen in the future, and what should we do about it right now?”

The ultimate goal of any Work PreView Meeting is to decide what to do with the resources at hand given what the team knows now and what is has to work with. To do this, members present issues using an “OSIR Structure” – they begin with an Objective that involves measurable results; then a Status statement of future prognosis and expected variance; a short summary of the Issue causing the variance; and finally a specific Recommendation for a suggested action. This format ensures that the “presentation” is over within about three minutes, leaving the majority of the group’s time for productive discussion about what action to take next in light of the new information.

3. Group Decision-Making. Ideally, groups solving problems together are made up of only five to seven individuals. Larger groups can come together to approve or decline recommendations, but not to attempt to solve problems. Whether a group decision is happening in a large group or a small one, the process comes down to members teaching and the decider learning. When the focus is on understanding each other, rather than on obtaining agreement, information transfer is clearer and more complete. Once the decider has learned all he or she can and made a decision, the team implements without failure or sabotage, even if they don’t personally agree. The team is always Iterating and no decision is “final,” but every decision must be fully implemented or else no learning can come from it.

4. Linked Teams. Redefining how managers and their reports conceptualize their relationship to others in the organization means moving away from the notion of managing a group of individuals and instead running a team with a single charter. Everyone succeeds or fails based on whether the entire team succeeds or fails. This allows Iteration through proactive resource sharing, and it tears down silos as peers ask, encourage and even push each other to accept help. Managers are better off, and the organization is more successful, when peers on a team work to understand each other and make trade-offs in support of higher-level goals.

5. Front Line Self-Sufficiency. The fundamental function of front line managers is to make individual employees as self-sufficient as possible at both delivering their output and at forecasting it. To do this, managers need to put in place clear goals that are defined in terms of output, not task or process. Managers must also give front line employees ready access to the resources they need to do their jobs. Once front line employees know what they’re supposed to do and have what they need to do it, all that’s left to promote self-sufficiency is to make sure they’re keeping track of their own work – without management intervention. As individual contributors make accurate forecasts – promises – about their future output, trust improves between front line employees and managers, and better information flows up to higher levels of management, helping the organization as a whole to IterateSM.


About the Author

Ed Muzio, CEO, Group HarmonicsEd Muzio is CEO of Group Harmonics and an award-winning three-time author. An expert in the scientific study of measuring and modifying human behavior, he is a sought-after consultant to business and industry worldwide and a popular media source. His new book is Iterate: Run a Fast, Flexible, Focused Management Team (An Inc. Original, 2018). Learn more at IterateNow.com.

Group Harmonics, Inc., claims the exclusive right to use “Iterate,” “Iterative Management,” and the family of “Iterative” marks in connection with business consulting goods and services.

Unexpected Issues with Business Trips

No matter how well you plan your business trip, sometimes there are events that take control away from us entirely. The best-laid plans are often the ones that fall apart in the face of adversity, and if you’re in an airport lounge or driving across the country, those hindrances can heavily impact your travel arrangements and business schedule. Sometimes, issues with business trips are completely out of our control, but knowing how to react and respond to them will go a long way to minimizing their impact on you and your career. Here are the best ways to cope with the most unexpected of issues.

World-Changing Events

Getting swept up in global events can be very frightening, and the fact is that there is, unfortunately, very little that you can do to prepare for them. Natural disasters, worker strikes, and even political unrest can have a severe impact on your travel plans, and they are far too big to manage on a personal level. The only thing that you can do in these big situations is to ensure that your friends, family, employer and work colleagues are aware of your location and your plans. In worst case scenarios, contact your nearest embassy and get advice on what to do next.

Car Accidents

Business trips by car are a great opportunity to discuss your strategies with your team and bond closer. Even if you’re traveling alone, car trips can be ideal for organizing your thoughts and mentally preparing yourself for the work commitments ahead. Car accidents are, of course, all too common, and if you’re injured while on a business trip, then there are going to be additional issues to consider, such as the insurance of your employer. As with any kind of traffic collision, it’s worth seeking legal advice from a team that has experience in automobile cases. Ideally, you want a legal team that works cross-country, with firms like Lopezlawpa.com who can advise you and guide you on the best course of action and has specialist knowledge of road accident cases.

Lost Luggage

If you frequently travel for work, you will have already perfected the art of packing! Losing your best luggage sets can be a considerable source of frustration, but the smart traveler will be prepared for the eventuality. Never pack vital work equipment or notes in your check-in suitcases, and always keep the most critical parts of your inventory close to hand. Never travel on a business trip without adequate travel insurance, and always be aware of the responsibility of your airline or coach when it comes to lost luggage. Of course, the best advice to avoid lost luggage is not to check any in and rely on your carry-on allowance instead.

The more that you travel for work, the more likely that you will eventually encounter mishaps, mistakes, and accidents. Always be aware of the potential for them and know what to do in the more extreme cases. Delays and cancellations may impact the end result of your business trip, but your safety and security should always be the priority.

Why You Should Invest in Tech Stocks

We are currently surrounded by big technology stocks such as Amazon, Alphabet Inc, Microsoft, Facebook, Apple; with some of these stocks crossing the $1,000 per share mark, they can be (and very much are) an attractive investment opportunity. Given that technology is currently shaping our world and everything in it, big technology stocks are only going to increase in price and become more valuable as time goes by, meaning they have the potential to make those who invest in them very rich indeed. Although some of the major technology stocks have climbed to astronomical levels, their current values are only just the beginning.

In the broadest sense, this category of “tech stocks” includes any stocks which are involved in the research, development and distribution of technological goods, services and solutions. So, they include companies which produce everything from computer software and hardware, televisions and even mobile games such as Angry Birds. In 2017, technology stocks offered investors the highest return on investment at an average of 34.28%… not too shabby!

#1: High Returns Does Not Mean Low Risk

Just because there have been strong returns, this does not mean that there are zero risks involved. As we are well aware, technology can change at a rapid pace, often overnight, and companies which are currently leading the way can soon fall behind as new and innovative companies come along and take the top spot. In some cases, technology companies can be forced out of business by new entrants to the market. Although this is unlikely to happen with market leaders such as Amazon, it is not impossible, and this is something which should always be kept in mind.

In addition, investing in emerging companies may appear like an attractive investment opportunity, however, it is not unheard of for companies which were expected to perform well disappear overnight into the abyss. The best stock research tools give you the most information in the most intuitive way. Many of these tools are free, and any investor can use them.

Although technology is a very exciting investment space that includes everything from smartphones to blockchain, artificial intelligence to streaming services and more, there are inherent risks which you expose yourself to by ploughing your money into technology companies.

#2: Areas for Investment

As mentioned, technology investments are very varied and include a range of companies and products. Once upon a time, tech stocks would have been almost exclusive to computer hardware and software. These days, however, it includes all sorts. In fact, it is hardly accurate to call most tech companies which operate in the market computer companies (think Apple, IBM and Microsoft) because they operate in several other areas such as:

  • Artificial Intelligence where computers perform tasks which once would have only been possible by human beings. AI is one of the fastest growing and most prominent areas for investment, however, this technology still has a long way to go and it is far from perfect.
  • Smartphones, the industry of which is led by Apple and Samsung. There are a lot of other players within the smartphone market producing everything from software, mobile apps and physical mobile devices.
  • Blockchain, something which has gained a lot of publicity in the last couple of years. It is the technology which backs up Bitcoin and other industry-leading cryptocurrencies, however, it has applications to far more than just cryptocurrency.

These three areas demonstrate that the tech space is dominated by far more than just computers, and that there are several investment opportunities available to those who want to get involved. Given that there are so many possibilities, it can be difficult for new investors to get involved in the market.

#3: 4 Tech Stocks Worth Looking At

Although the market is huge and there are infinite investment possibilities, there are four major contenders which are worth looking at.

1. Apple

Apple is by far the world’s favorite consumer tech company, leading the way with their range of smartphone and laptop computer devices. Apple’s stocks usually rest around the couple-of-hundred dollars mark and given the insatiable appetite of consumers for Apple’s products then it is a stock which isn’t going to be decreasing in value soon.

2. Alphabet Inc. (Google)

Alphabet, Google’s parent company, is also a very attractive investment opportunity. Google leads the way on the internet by providing several services which we all know and love such as Googlemail and YouTube. The main problem with investing in Alphabet is the fact that their shares sit at around the $1,100 mark. If you can afford it, though, it is worth going for, because this company is going to continue to grow as it focuses on new ventures.

3. Facebook

Facebook is a money-making machine and whilst the recent data scandal has harmed the social networking giant, it is not going to be shutting up shop any time soon and at around the $200-mark, Facebook’s stock is incredibly cheap. It is likely that we will see Facebook continue to grow strongly over time at a rapid pace.

4. Amazon

Amazon is an unstoppable company which is beginning to encroach on our lives in entirely new ways. From Amazon Key and drone delivery to AI solutions such as Amazon Alexa, the company is really pushing boundaries with its innovative technologies and desire to satisfy consumer demand at all levels. Amazon’s shares usually rest around the $1,900 mark which, again, whilst pricing some people out, it is worth spending your money on should you have enough to do it. Amazon’s share price exceeding the $3,000 mark is far from being a far-fetched idea; it is more a question of when this will happen.

Today, tech stocks represent the most valuable of all investments, second perhaps only to gold and other timeless precious metals. As the world begins to demand more and more from technology and new developments occur, having a stake in some of the world’s foremost technology companies is likely to provide a sizeable return on investment in the future, especially if you buy into them now whilst their shares are still relatively low compared to what they could be.

How Credit Card Companies Make Their Money

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You’ve likely experienced a fair amount of credit card companies trying to entice you via offers in the mail. When you consider the fact that the United States’ total credit debt reached $1 trillion in 2017, it becomes clear why: these credit cards are a massive source of revenue.

On the surface, credit cards may seem like simple and convenient money and nothing more. However, there are also aspects of credit cards that are somewhat deceptive – sometimes intentionally so. Often the upsides of the card are written in large print, while the downsides are written in a conveniently small font.

The ease of credit card use can spell trouble for more impulsive buyers, which highlights the importance of knowing yourself and the ways that you tend to deal with feelings like anxiety. We may think we are above the influence that stress has on our finances, but studies indicate the contrary. In fact, compulsive buying disorder impacts 5.8% of the US population and affects people of all ages.

High-Interest Rates

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Obviously, credit cards can allow you to pay for things when you don’t have money at that point in time, but this convenience also has a dark side. Thinking that this is “free money” is a mistake many credit card initiates make, particularly among a younger demographic. Unfortunately, this paves the way for young credit cardholders to dig themselves into a hole that may take years to free themselves from.

It’s important to remain aware that credit card interest rates are commonly in the 20% range. This puts an impetus on debtors to pay off the amount sooner rather than later at the peril of being slammed with penalties that are hard to deal with. In addition, keeping a balance of over 10% of your credit limit tends to weigh heavily on your credit score.

Another common tactic that credit companies employ is appealing to potential card holders with an initially low rate, which then balloons into a far more severe figure after the initial enlistment period ends.

For best practice, keep a low balance on the credit card as much as possible, and always pay off the required amount by the due date. If a large amount is spent on a credit card that can’t be paid off, taking out a loan to avoid the sky-high interest risk is generally the better course of action than taking the hit.

Charges To Merchants

Many times businesses enact a minimum cost for credit card charges. This is because companies charge an extra 2-3% on all purchases to merchants. In order to counteract this charge, businesses create a mandatory minimum.

This small percent may not seem like much, but in the scope of the billions of credit transactions that take place every day, this amount adds up. This rate becomes one of the biggest revenue streams for credit companies.

Cash Advances

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Apart from your total credit line, the cash credit line. The cash you take out from your credit card abides by a different set of rules than the regular use of the credit card. In other words, the interest rate is often higher and may begin amounting interest as soon as you withdraw it.

Differing Tactics According To Demographic

A person with less education tends to get specially designed advertisements showcasing more rewards than the advertisements aimed at more educated individuals. This effectively runs up debt more reliably than if they advertised the same way across the board.

On average, each credit account makes about $213 for the company per year. This is an area in which credit companies vary wildly based on the credit standing of the cardholder.

Fees

When someone has bad credit already, their credit lenders are known as “subprime issuers”. In these cases, the credit company usually makes more money from fees than interest rates. Some examples of these fees are outlined below.

  • Balance Transfer Fees – Transferring debt from one credit card to another with a lower interest rate often results in a fee of 3-5% of the amount moved.
  • Late Fees – If the minimum amount is not paid by the due date, late fees often result. In some more deceptive cases, the initial fee is waived only to deliver an unpleasant surprise the second time around.
  • Annual Fees – these are especially common on cards that promise higher rewards rates, as well as on cards issued to people with subpar credit.

Foreign Exchange Fees

One source of fees that catches many credit users off their guard arises when traveling in a foreign place. Many times these charges are made at the time of purchase, and generally amount to around 2.5% of the purchase price.

This fee may be a small price to pay generally speaking, but it still might be a reason to avoid making large purchases when traveling abroad, or opting to use cash if you do.

Commission From Selling Cardholder Names

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You may wonder how credit companies know who you are and where to send their advertisements to. One of the sneakier ways that credit card companies make money is by selling your name and info to other companies so they too can bombard you with advertisements.

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