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In a time of global uncertainty and volatility, leadership will need to be agile, strategic, and collaborative.
It’s not Business as usual!
Market places are shifting faster under external pressures; continuing wars are disrupting populations, unity, and supply chains. It’s a time of turmoil and with recent USA trade and tariff policies markets and relationships have been turned on their head.
Along with rapid technological advances, shaky political landscapes, and unsteady global markets, changes are challenging the world and local Business leaders and entrepreneurs.
Leaders will need to be equipped to respond to this new landscape and environment. Responses that require adjustments in their Organizations, how they do business, with the necessary resources, including upskilling workforces while accommodating human capital and spirit. It's not business as usual!
Trends
1. New and fast-changing technology: The use of social media as embraced by many global leaders now, along with adoption of Generative AI has created a new world order. It's often fast-paced policy making, and rapid-fire communication and communiques. Leaders need to be prepared, scanning the horizon for sudden change and ready with course correction.
2. Technology savvy: Leaders need to embrace change and to navigate rapid technological advances must adopt a mindset of continuous learning for both them and the workforce. Adaptability and proficiency are vital. In a competitive arena it is vital for Leaders to anticipate and face change and drive innovation. To be stagnant is to be left behind.
Leaders will also need to understand how to leverage technology, including AI. Technology that streamlines processes, and enhances decision-making, while still maintaining and building human connections and relationships.
Culture in any setting, personal or professional, recreational or business is a powerful influence. It can be good, bad, positive, or negative, healthy or unhealthy.
Winning, or losing culture, understanding both is vital to being the best you and your Business can be. The right culture can make or break your Business!
Definitions and key differences:
A winning culture is exemplified in successful Organizations in any industry. Corporate or sporting teams' culture is demonstrated in how things are done and includes both the spoken and unspoken assumptions and values that guide practices and behaviours.
When adopted a high-performance culture, team collaboration, employee motivation and boosted productivity result in successful, winning outcomes.
On the other hand, a losing culture can surface when members are pitted against each other. It's everyone for themself, and self-survival threatens unity. This can happen in any setting. For example, when a Company introduces cost-cutting measures where personal performance and jobs are under scrutiny, the ‘winning’ team culture is lost.
The Impact
When this ‘winning culture’ mindset is shaken, particularly threatened by a team's poor performance over a long time, a losing culture can permeate taking its toll both on and off the field. Everyone can be affected, player, team and leader morale. This has been highlighted recently with some football players speaking out.
In the workplace. ‘losing’ culture symptoms include disengagement, negative atmosphere, high employee turnover and sometimes toxic environment. Poor attendance and attitude destroy team-thinking, connections and output.
Yes or no, the question often arises, and the debate continues.
People of power, political influence, scholars, intellectuals and everyday people will most likely have thoughts or an opinion.
Consider the argument, it’s a complex one with key points supporting both sides.
Compare and contrast!
The born to lead position proposes inherent qualities, a natural propensity for leadership. ‘Traits’ are more likely to emerge in these leaders as given qualities, confidence, courage, charisma and the ability to inspire others. Personality and traits that predispose them to be leaders.
Such attributes and characteristics can be displayed at any age, from early childhood and beyond. Watch a group at pre-school, or on the playing field or later at a workplace and you will see these leaders.
Examples of gifted leaders include Nelson Mandela and Martin Luther King who developed into powerful leaders through experience. Both examples demonstrate leadership flourishes when nurtured.
On the other hand, made Leaders result from leadership skills gained through education, training and experience. Programs that support development and the opportunity to grow, improve and gain the necessary skills over time.
The role of opportunity and development in producing strong leadership can't be stressed enough. Birth right and inherited position don’t have to precursor effective leaders and leadership. Think of situations when you have seen those from diverse circumstances and sometimes disadvantaged backgrounds emerge as strong leaders. Our PM is one that grew up in humble beginnings but has risen to lead our country.
Environmental factors can and do play a part, hampering and influencing leadership development. COVID forced leaders to step up to deal with unprecedented events and challenges. Our Premier led by example, supporting a strong stance of protection for public welfare.
Tariffs the word of the year!
Certainly, the topic of conversation in recent times as the world awoke to the phrase ‘Trumps tariffs!
Were you caught unaware wondering what’s this all about, if or how does it affect me, as a consumer and or Business owner? What are the implications!
Here we go, Tariffs explained!
Tariffs are taxes charged on goods or services coming into a country (i.e. bought from other countries). Generally, they are a percentage of a product's value and is a duty (tax) imposed by the government. Typically, the cost is usually passed on to the consumer.
How tariffs apply differs between countries. Australia’s rates are relatively low, around 5% on most goods, relying on GST and other methods depending on the type of goods and any free trade agreements.
That wasn’t always the case. The direction and makeup of Australia’s trade changed over the past fifty years, evolving in response to shifts in the global economic climate and our economy. For example, in 1997, the rate of assistance was just 5% compared to 35% in 1973 and 22% in 1984.
Looking back, most developed countries, after World War 2, gradually removed major tariffs, embracing free trade. Australia was the exception, keeping high tariffs up until the 1990s to protect the manufacturing industry. An example is the electronics industry. Australia's largest company, AWA, up to the 1950s, prospered with the help of government assistance. The government supported a domestic electronic industry and protection of Australian jobs.
History and economic policy tell us that this approach is fraught with problems.
In the family Business, a panel beating shop, two brothers, Aaron and Michael already had a fractious relationship, that became toxic when Michael, the elder did all he could to alienate and push the younger out. Michael convinced his father he was the rightful one and best suited to take over the family Business, and that he did.
Regrettably the father, Mr Brown had no formal structured governance plans in place to guide discussions. He hadn’t made any provision for himself in retirement or for the younger son’s future. This played out with a family breakdown, disconnected ties and bitter outcomes.
This scenario highlights the importance of implementing effective Structures in a Family Business. A situation that could have been avoided if the Business had a formal body to govern, direct and protect all parties involved.
Revisit the same scenario, in this example the Business has established a formal structure and is governed by a Board. Mr Brown, the father has arranged and secured a Succession Plan. These arrangements provide direction, clarity, and authority with provision for all.
If you are setting up a new Business or if established, implementing the right structure is crucial.
Need advice? contact Blackburn Accounting we can help develop what best suits your enterprise and lay down the foundations for success.
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