Managers are role models for smart phone use – and new research from the Australian School of Business shows always-on cultures are hampering productivity, effectively turning workers into "human pinballs" as they bounce from one distraction to the next with no time to think. Setting a poor example for technology use can send employees down the fast path to burnout, with ambitious staffers particularly at risk of over-engagement. While some individuals are turning off communication devices or leaving them in the office, switched-on organisations are pre-emptively tackling the issue.
Executives and managers confront a barrage of distractions from the big picture. As the speed of change and communication in global business generates incessant opportunities and threats, a clear corporate strategy is more vital for long-term business success than ever. Smart organisations know where they are heading and why. Some even divest profitable operations just to stick to their plans. Doug Stace, a strategy expert at the Australian School of Business, highlights why strategy must be a day-to-day concern and not only an annual planning event.
There's no training manual for how to manage multigenerational workforces. Yet a new study from the Australian School of Business covering four generational cohorts in five countries shows significant differences in work values exist between age groups. Members of Generation Y may be technologically adept, but their focus on leisure strongly conflicts with Traditionalists' and Baby Boomers' hard-work ethics. Adaptability is required all round. Some companies are actually leveraging generational differences. And when initiatives are designed to appeal to the "work-is-not-my-life" young ones, often more seasoned colleagues also opt to get with the program.
Not-for-profit organisations often thrive on the strength of volunteers so understanding what drives people to give time and effort free of charge is vital. Typically, volunteering is considered a selfless, empathetic activity, but quite often the "me" factor is at play. A new study from the Australian School of Business shows the motivations of volunteers vary greatly between age groups and indicates the need for not-for-profits (NFPs) to profile their volunteer bases to understand where gaps exist. Self-interested volunteers can work well, as long as the NFP knows how to wrangle them.
The collapse of a number of financial planning firms in recent years has dented consumer confidence in financial advisers, but changes are afoot. The government has tackled conflicts of interest with its Future of Financial Advice reforms and the Australian Securities and Investment Commission has proposed a national exam as an industry qualification. Moves to lift educational requirements for financial planners had already been signalled by the industry. This year, the Australian School of Business (ASB) commenced degree courses in financial planning and has responded to an approach from Tim Steele, director of AMP's Horizons Academy, which trains and licenses that company's financial planners. Under a new agreement, eligible graduates from AMP's Horizons program will be able to gain academic credit towards further study at the ASB. Steele recently spoke with Knowledge@Australian School of Business.
When a quarter of your workforce is heading for the door, it's time for some serious strategic thinking. One Australian organisation is tackling the outflow of thousands of mature-age workers by 2015 with a series of policy changes and initiatives that not only glean vital information for the employer, but also improve the prospects for wannabe retirees. However, a one-size-fits-all policy approach will not be effective in all cases, warn researchers from the Australian School of Business. And collecting data on the intentions of a growing number of mature-age workers and their effect on the workplace is proving complicated.
A new inquiry into the activities of Australia's central bank subsidiary, Securency, has brought the prevalence of bribery in international business dealings back into the spotlight. Demands for "grey money" are commonplace when negotiating deals in many developing nations. While multinational boards may place a high emphasis on ethics, often it's their people on the ground who are left with the risky business of tackling the grey areas to get deals over the line. It's time for a public airing of this cross-cultural no-go zone, says international management professor Andrew Kakabadse. Major global third sector organisations, including the United Nations, need to open the debate so corporate board members can take their heads out of the sand.
Is the end really near for the euro zone as in-fighting escalates among European leaders over strategies to bail out debt-stricken economies and strengthen the banking system? Should Greece default on its debts and quit the European Monetary Union to contain political and social unrest, the contagion effect looks set to be global. Those who believe the Greeks should be left to go it alone fail to understand the wider punishing effects, warns Wolfgang Buehler, a professor at the Australian School of Business who has extensively analysed the crisis. While the fallout may be dire for European unity and international trade, in its bitter lessons are clues for a better way forward.
As tax time looms, many Australians are gathering evidence of deductible spending to file a personal income tax return post June 30, with their hopes pinned on receiving even a small sum back. However, in the UK and New Zealand,"wage slaves" and others with comparatively simple tax affairs are spared the need to fill in a return at all.Ten inquiries have looked into simplifying tax returns over the past two decades, but Australia's policymakers have held back. Jason Kerr, a researcher at the Australian School of Business, finds strong evidence for a hybrid system that would entrust taxpayers to do the right thing.
The consuming habits of the baby boomers (those born between 1945 and 1960) have substantially eroded the rate of saving in advanced nations over the past 40 years. Spending up rather than saving up has created an untenable situation. And future generations will almost certainly have a lower standard of living, unless policymakers step in to reverse the trend, according to a new study from the Australian School of Business. With an ageing population accelerating the problem, researchers suggest the "I want it now!" boomers should curb their selfishness and consider the kids.
Plans by the new Coalition Government to abolish Australia's carbon tax put it on a collision course with its Labor predecessor, which opposes the move unless it leads to an emissions trading scheme. Into the fray comes new research from centres at the University of New South Wales. This modelling of investment and operating cost scenarios demonstrates how, by 2030, power generated from renewable energy sources would be a cheaper option than even “clean” gas and coal. The researchers aim to inform a process of decarbonising the electricity industries, but financial market analysts are sceptical that an entrenched reliance on fossil fuels will change without a series of ultra-extreme events.
Australian School of Business professor Peter Swan and colleague Marc-Oliver Fischer have stirred up the business community by refuting the popular view that independent board directors increase firm value. The researchers studied the performance of almost 1000 Australian companies since the ASX introduced voluntary governance guidelines in 2003. Those that followed the board independence recommendations increased CEO and director pay yet under-performed financially. “We estimate these losses conservatively at about A$69 billion over the period 2003-2011,” Swan says. “If the director has no substantial financial interest in the affairs of the company, the only thing they’re going to care about is their own wellbeing.”
When it comes to appreciating the power of big data, the whistle-blowing activities of WikiLeaks and American computer specialist Edward Snowden have seized the headlines. But the collection and manipulation of massive amounts of digital information is increasingly being applied in more legitimate ways, with savvy businesses investing in innovative tools to unlock real-time information about their operations. Speed is the crucial factor, according to Felix Tan from the Australian School of Business. “If you can analyse and respond to customer and supplier data almost instantaneously, the better informed your business processes will be. That’s the challenge,” Tan says.
Asian nations are facing a dramatic rise in medical costs as they plan for the looming demographic transition to much older populations. Rafal Chomik, from the Centre of Excellence in Population Ageing Research (CEPAR) at the Australian School of Business, says that Asian governments have the fiscal capacity to keep expanding their health systems, but they should heed the successes and failures of reforms in the region and elsewhere to avoid the excessive cost growth seen in the West. Thailand is cited as a good example, and Australia’s strong front line of GPs as well as its pharmaceutical benefits scheme are two initiatives worth emulating, according to CEPAR investigators.
The Chinese market is a glittering prize for foreign companies, but those that hope to prosper need to be aware of a complex labyrinth of government, labour and cultural forces, according to research from Australian School of Business professor Stephen J. Frenkel and PhD candidate Chongxin Yu. Business plans and HR strategies must adapt to the local context and ties with authorities at all levels need to be maintained. Frenkel suggests that returning Chinese students educated in Australia may offer a new bicultural management model for Western firms because these graduates have the advantage of “knowing their own culture, but also knowing us”.
Companies need to update their products, develop new ones and break into fresh markets. But equally important is the ability to cull projects that aren’t working. Dan Levinthal, the Michael J. Crouch Visiting Professorial Fellow at the Australian School of Business, describes it as a “difficult balance of being tough on resource allocation, but at the same time you can’t make it stigmatising and career-ending” for those whose ideas don't go forward. Controlled micro-failures are part of innovation for start-ups in the tech sector, where the knowledge gained from unsuccessful initiatives is known as “flearning”.
Business professionals are on the move, whether they like it or not. Traditional employers, such as media organisations, the public service, telecommunications companies, accounting firms, banks and universities have all announced redundancy programs during the past 12 months. Job ads are down and unemployment is rising. Some firms are accessing cheaper services offshore. But what replaces employee commitment to an organisation when stable, full-time jobs are replaced by casual, contract and part-time work? Is “volatile, uncertain, complex and ambiguous” employment the new white-collar reality? Experts from the Australian School of Business and industry weigh in.
Research led by Ronald Masulis, the Macquarie Group Chair in Financial Services at the Australian School of Business, demonstrates a strong causal link between board independence and increased value for shareholders. But there is a potential pitfall in the way board members are chosen. Masulis and co-author Lixiong Guo find that social connections between CEOs and non-executive directors can undermine board independence. “I would encourage corporate boards to voluntarily adopt a fully independent nominating committee, and if they are lacking a nominating committee, to establish one,” says Masulis.
High-frequency trading (HFT) accounts for 27% of Australian stock market turnover. Its critics describe it as parasitic and providing toxic liquidity. The Australian Securities and Investment Commission says that most concerns about HFT are unfounded. But controversy is never far from the surface. Last month, the Industry Super Network (ISN) cried foul, claiming high-speed traders could cost Australian investors and retirement savers more than $1.5 billion a year. It prompted Australian School of Business finance professor Mike Aitken to point out that HFT is just the latest in a long list of market innovations and that the ISN should get up to speed, by changing stockbrokers if necessary.