Vistage members don’t need reminding how useful social media can be in building a business. Nonetheless, there is an interesting story out today about the way in which Edinburgh firm Morphsuits have used Facebook to grow a business from scratch to a turnover of more than £10 million in under three years.
As Facebook gears up for a rumoured initial public offering later this year, the company has been keen to demonstrate its value to potential buyers. One way of doing this has been to commission a survey from Deloitte to quantify how much business Facebook generates in the UK. The report figures that the company has contributed £2.2 billion to the UK economy and that it supports over 35,000 jobs.
One of the companies to have made good use of the Facebook platform is Morphsuits. Set up in 2009 with reported seed capital of £9000, the company sells spandex fancy dress suits. By building a community of Facebook fans who send in photos of themselves wearing the Morphsuits, the company has accumulated over 750,000 friends and sold over 500,000 suits. According to this report from the BBC last summer, this equates to a turnover greater than £10 million.
The Scotsman has a full report here along with quotes from Richard Allen, Facebook’s head of policy in Europe, Middle East and Africa. Allen is quoted saying, ‘There are businesses that use Facebook to engage new markets and develop a larger order book and are therefore able to employ more people.‘Morphsuits is a classic example as it has been able to grow the business in a way that wouldn’t be possible without the existence of this word-of-mouth marketing mechanism where it can build a loyal following that then passes on their recommendations to others with similar interests.’
Thursday, 26 January 2012
UK CEOs ‘optimistic’ about growth
The average British CEO is “more optimistic” than their European equivalents about the future, according to new data.
PricewaterhouseCooper’s annual global survey has revealed that British CEOs are far more likely to invest into their companies and boost headcount than those in Europe, feeling 79 per cent more upbeat about revenue growth, compared with 64 per cent in the Eurozone.
The research confirms that CEOs accept growth may take some time. 29 per cent see it happening within 12 months and 46 per cent think it could happen over the next three years, Fresh Business Thinking writes, however, confidence seems high.
Accepting that there could still be challenging times ahead, UK CEOs are reportedly “sticking with what they know” in terms of measures to take to promote growth. These include increasing their market share, tapping into new geographic markets and offering new products of services.
The survey suggests, BBC News claims, that after years of uncertainty, businesses are now better prepared and better equipped to cope with any issues.
This is evidenced by the fact that 85 per cent of CEOs say they “have access” to the talent required to help deliver the company strategy and 53 per cent expect to recruit in the next year.PwC’s chairman and senior partner, Ian Powell said: “The challenge now for the UK CEO is ensuring that their companies remain flexible, maintain cost controls and restructure to adapt to this slower growth environment.”
PricewaterhouseCooper’s annual global survey has revealed that British CEOs are far more likely to invest into their companies and boost headcount than those in Europe, feeling 79 per cent more upbeat about revenue growth, compared with 64 per cent in the Eurozone.
The research confirms that CEOs accept growth may take some time. 29 per cent see it happening within 12 months and 46 per cent think it could happen over the next three years, Fresh Business Thinking writes, however, confidence seems high.
Accepting that there could still be challenging times ahead, UK CEOs are reportedly “sticking with what they know” in terms of measures to take to promote growth. These include increasing their market share, tapping into new geographic markets and offering new products of services.
The survey suggests, BBC News claims, that after years of uncertainty, businesses are now better prepared and better equipped to cope with any issues.
This is evidenced by the fact that 85 per cent of CEOs say they “have access” to the talent required to help deliver the company strategy and 53 per cent expect to recruit in the next year.PwC’s chairman and senior partner, Ian Powell said: “The challenge now for the UK CEO is ensuring that their companies remain flexible, maintain cost controls and restructure to adapt to this slower growth environment.”
Wednesday, 18 January 2012
Businesses should use instant messaging
British businesses should make better use of instant messaging (IM) according to research, Fresh Business Thinking reports.
A survey carried out by Symantec Corp has found that a “general misunderstanding” of IM with regard to security and informality has resulted in three quarters of firms shunning the tool, deeming it unproductive.
Yet data released by YouGov found that, when used “the right way”, IM can prove an extremely efficient method of communication. Of those who use IM at work, 55 per cent said it dramatically cut the number of emails sent and received, while 50 per cent said it was “more efficient” than email.
The findings revealed that IM is used predominantly to ask colleagues urgent, quick questions, to communicate information and to multi-task. 45 per cent said that they felt the sociable aspect allowed them to build better relationships with work mates.
Additionally, itbusiness.ca points out, IM is real-time collaborative and allows for group conversations, provided all parties have signed up for an account with the IM provider.
To appease the fears of company decision makers or the CEO, Symantec has made several recommendations as to the proper use of IM. The first is to create and publicise an IM policy, providing guidance around how and why the tool should be used, i.e. keep personal contacts separate.
Educate staff on the benefits and risks of IM to enable them to decide whether it the right form of communication and to know that conversations can be saved.
Lastly remind staff that workplace IM should be treated as any other form of office communication, to minimise any reputational damage caused by careless statements.
Tuesday, 3 January 2012
Social media policies a must for reputational protection
Employers must protect their business’ reputation through the use of internet policies, reports Fresh Business Thinking.
It’s advice that the CEO of any business should heed: put a social media policy in place to govern what employees can upload to the internet, in case it causes any reputational damage.
The call is particularly pertinent at this time of year, with the possibility of ‘exuberant’ Christmas party photos being shared on Facebook or drunken anecdotes getting uploaded to Twitter.
It’s a modern phenomenon, but one that is becoming increasingly more relevant, hence the need for more stringent procedures to prevent the posting of potentially harmful content on the internet.
A survey of 1,000 small and medium-sized businesses by support specialists ELAS found that 65 per cent of employers did not have any such policy in place, leaving staff unaware of what what acceptable online behaviour.
Businesses are being advised to “own and not fear” social media. A policy outlining what is appropriate and what constitutes misconduct will demonstrate they have a handle on it, People Management revealed.
According to ELAS’ head of employment law, Peter Mooney, the issue is that content can be loaded and cause damage long before an employer finds out.
The second problem is that many employers may believe that what staff do and say on their social networks is none of their business – but this is not so when it involves the company.
“Employers are well within their rights to remind staff that they are ambassadors for their companies around the clock and make clear that anything which brings the business into disrepute cannot be tolerated,” Mr Mooney added.
“If they don’t, then what starter out as a bit of fun between colleagues at a Christmas party can quickly become a damaging and uncontrollable storm which leaves your company’s good name in tatters.”
It’s advice that the CEO of any business should heed: put a social media policy in place to govern what employees can upload to the internet, in case it causes any reputational damage.
The call is particularly pertinent at this time of year, with the possibility of ‘exuberant’ Christmas party photos being shared on Facebook or drunken anecdotes getting uploaded to Twitter.
It’s a modern phenomenon, but one that is becoming increasingly more relevant, hence the need for more stringent procedures to prevent the posting of potentially harmful content on the internet.
A survey of 1,000 small and medium-sized businesses by support specialists ELAS found that 65 per cent of employers did not have any such policy in place, leaving staff unaware of what what acceptable online behaviour.
Businesses are being advised to “own and not fear” social media. A policy outlining what is appropriate and what constitutes misconduct will demonstrate they have a handle on it, People Management revealed.
According to ELAS’ head of employment law, Peter Mooney, the issue is that content can be loaded and cause damage long before an employer finds out.
The second problem is that many employers may believe that what staff do and say on their social networks is none of their business – but this is not so when it involves the company.
“Employers are well within their rights to remind staff that they are ambassadors for their companies around the clock and make clear that anything which brings the business into disrepute cannot be tolerated,” Mr Mooney added.
“If they don’t, then what starter out as a bit of fun between colleagues at a Christmas party can quickly become a damaging and uncontrollable storm which leaves your company’s good name in tatters.”
Saturday, 10 December 2011
Boost productivity by speaking plainly
Business leaders should encourage their team to drop business jargon from their conversations, since it could help make them more productive.
Dan Pallotta, a non-profit expert and social entrepreneur, explained on Harvard Business Review that things like acronyms, buzzwords, meaningless expressions and abstract definitions just prevent people from communicating – making it an important area for leadership development.
He said: “You will gain tremendous credibility, become much more productive, make those around you much more productive, and experience a great deal more joy in your working life if you look someone in the eye after hearing one of these brain-jammers and tell the person ‘I have no idea what you just said to me’.”
Pallotta described how he used to think he was “stupid” if he did not understand a concept, but pointed out that those who have something to gain must be the ones who work harder to get listeners to comprehend and respond to an idea.
When it comes to communicating with employees, it has become increasingly important to engage with them, according to principal researcher at Roffey Park, Jonny Gifford. He told Changeboard that focusing on this issue will help when dealing with Trade Union actions.
He explained that the cuts currently being seen in the UK are likely to prompt more union activity, so businesses should position themselves to make such conversations easier.
Dan Pallotta, a non-profit expert and social entrepreneur, explained on Harvard Business Review that things like acronyms, buzzwords, meaningless expressions and abstract definitions just prevent people from communicating – making it an important area for leadership development.
He said: “You will gain tremendous credibility, become much more productive, make those around you much more productive, and experience a great deal more joy in your working life if you look someone in the eye after hearing one of these brain-jammers and tell the person ‘I have no idea what you just said to me’.”
Pallotta described how he used to think he was “stupid” if he did not understand a concept, but pointed out that those who have something to gain must be the ones who work harder to get listeners to comprehend and respond to an idea.
When it comes to communicating with employees, it has become increasingly important to engage with them, according to principal researcher at Roffey Park, Jonny Gifford. He told Changeboard that focusing on this issue will help when dealing with Trade Union actions.
He explained that the cuts currently being seen in the UK are likely to prompt more union activity, so businesses should position themselves to make such conversations easier.
Friday, 9 December 2011
Is technology improving work-life balance?
It is not clear to what extent technology is helping to improve the work-life balance of business professionals with children, says a Huffington Post blogger. For many chief executive officers (CEOs) and other senior professionals, the introduction of smartphones and remote working capability has allowed them to spend more time at home with their offspring, noted Monica Gallagher Sakala in a recent post. However she pointed out that it has yet to be seen how it affects children when their parents are constantly fiddling with their BlackBerrys or iPhones while at home, as they balance being a CEO with being a father or mother figure. Ms Gallagher Sakala noted that many business professionals are pessimistic about how much of a work-life balance they can expect, adding: “I say enough of the work-life ‘balance’ debate. Own your choice, be proud of your decision and be realistic about its consequences on your career or your family.” The popularity of remote working has grown significantly in recent years, with employees often able to access internal networks from the comfort of their own home, where they can look after young children. Writing for Forbes, Microsoft’s partner group vice president Jenni Flinders accepted that remote working does not make it “effortless” to balance one’s job with other responsibilities, but claimed the technology has helped. In her view, it is easy to take for granted how simple it has become for many firms to connect with their employees off-site. |
Tuesday, 6 December 2011
5 Reasons Peer Advisory Groups Can Work For CEOs
Imagine for a moment being the CEO. It’s your responsibility to make good decisions that are best for the company as a whole. While you may have a terrific senior management team and a highly engaged board of directors, the people giving you advice also have a personal stake in the outcome.
Also, when CEOs are suffering from personal problems, the effect of support from family and friends is 53% to 79% weaker than support from fellow CEOs in restoring the leaders’ overall effectiveness, say Michael L. McDonald of the University of Texas and James D. Westphal of the University of Michigan. Personal problems such as conflict with children or marital issues hurt CEOs’ effectiveness because they prompt the chief executives to pull back on important interpersonal behaviors involving subordinate managers, the researchers say.
As a CEO, I’m not suggesting you don’t listen to your senior people or your board, who are in most cases (hopefully) sincerely offering their best input and counsel, but it begs this question: Would a CEO also benefit from being asked tough questions and receiving counsel from fellow CEOs, who have no personal vested interest in the outcome?
As you may have guessed, Vistage member CEOs have been answering yes to this question since 1957. Here are five benefits (among others of course), a CEO will realize by regularly engaging with a group of his/her peers:
1) Empathy – If you’ve never been a CEO, it’s nearly impossible to put yourself in a CEO’s shoes. It’s difficult for most of us, regardless of how much we care or how objective we believe we are in offering counsel to our CEOs, to imagine what that’s really like. Fellow CEOs aren’t looking through the lens of marketing, finance, or HR, they’re looking at the whole picture because it’s what they do every day. The empathy that one CEO shares with another is a priceless benefit of the CEO peer advisory experience. Its impact is not only felt professionally, but personally as well.
2) Objectivity – An employee or board member, regardless of their espoused objectivity and true sincerity, has a personal stake in the outcome. Fellow CEOs from non-competing businesses are not burdened with that extra layer of consideration. They can ask the hard questions without regard for sacred cows, personal relationships or other organizational/industry blinders. It’s an eye opening experience for many CEOs when peers looks at a specific challenge through a completely impartial lens.
3) Shared Challenges – While the CEOs in the peer group may serve entirely different types of customers in widely varying industries, they share common challenges regarding employees, growth, profitability, executive development, technology, and uncertainty, just to name a few. The more they talk, the more they realize how much they have in common and how much they can learn from on another.
4) Learning – While they have shared challenges, the myriad industries they represent set the table for rich conversations about common practices in one sector that are often quite different from practices in another sector. Sharing ideas across industries help CEOs learn from one another. What’s more, these CEOs will also share their personal triumphs and failures. This display of trust creates an environment where the CEO can be truly vulnerable to learn and grow. And unlike one-to-one executive coaching, which can be a rich complement to the peer advisory experience, there’s nothing quite like the power of the group dynamic.
5) Accountability – As CEOs share their challenges and aspirations with their peers, being CEOs as they are, they tend to be serious about holding their peers accountable to make the tough choices and to deliver on their stated courses of action. As I’ve heard from so many Vistage Chairs and members, this atmosphere of shared accountability may be the most powerful dynamic of all when it comes to the peer advisory experience.
By Leo Bottary
Also, when CEOs are suffering from personal problems, the effect of support from family and friends is 53% to 79% weaker than support from fellow CEOs in restoring the leaders’ overall effectiveness, say Michael L. McDonald of the University of Texas and James D. Westphal of the University of Michigan. Personal problems such as conflict with children or marital issues hurt CEOs’ effectiveness because they prompt the chief executives to pull back on important interpersonal behaviors involving subordinate managers, the researchers say.
As a CEO, I’m not suggesting you don’t listen to your senior people or your board, who are in most cases (hopefully) sincerely offering their best input and counsel, but it begs this question: Would a CEO also benefit from being asked tough questions and receiving counsel from fellow CEOs, who have no personal vested interest in the outcome?
As you may have guessed, Vistage member CEOs have been answering yes to this question since 1957. Here are five benefits (among others of course), a CEO will realize by regularly engaging with a group of his/her peers:
1) Empathy – If you’ve never been a CEO, it’s nearly impossible to put yourself in a CEO’s shoes. It’s difficult for most of us, regardless of how much we care or how objective we believe we are in offering counsel to our CEOs, to imagine what that’s really like. Fellow CEOs aren’t looking through the lens of marketing, finance, or HR, they’re looking at the whole picture because it’s what they do every day. The empathy that one CEO shares with another is a priceless benefit of the CEO peer advisory experience. Its impact is not only felt professionally, but personally as well.
2) Objectivity – An employee or board member, regardless of their espoused objectivity and true sincerity, has a personal stake in the outcome. Fellow CEOs from non-competing businesses are not burdened with that extra layer of consideration. They can ask the hard questions without regard for sacred cows, personal relationships or other organizational/industry blinders. It’s an eye opening experience for many CEOs when peers looks at a specific challenge through a completely impartial lens.
3) Shared Challenges – While the CEOs in the peer group may serve entirely different types of customers in widely varying industries, they share common challenges regarding employees, growth, profitability, executive development, technology, and uncertainty, just to name a few. The more they talk, the more they realize how much they have in common and how much they can learn from on another.
4) Learning – While they have shared challenges, the myriad industries they represent set the table for rich conversations about common practices in one sector that are often quite different from practices in another sector. Sharing ideas across industries help CEOs learn from one another. What’s more, these CEOs will also share their personal triumphs and failures. This display of trust creates an environment where the CEO can be truly vulnerable to learn and grow. And unlike one-to-one executive coaching, which can be a rich complement to the peer advisory experience, there’s nothing quite like the power of the group dynamic.
5) Accountability – As CEOs share their challenges and aspirations with their peers, being CEOs as they are, they tend to be serious about holding their peers accountable to make the tough choices and to deliver on their stated courses of action. As I’ve heard from so many Vistage Chairs and members, this atmosphere of shared accountability may be the most powerful dynamic of all when it comes to the peer advisory experience.
By Leo Bottary
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