Author: Anne-Maria Yritys

I am a very well connected business professional who holds an MBA in international business management. My contacts live in 200 + countries worldwide. I am also a certified investment advisor and a vocational teacher by profession. I offer my clients business/individual consultations with a speciality in international business and project management. In addition, I offer coachings, and sell online courses. At specific requests, I am available for public speaking events and for arranging workshops for groups of people. Ask for prices/package prices. All my prices are in euros and include 24% VAT. What do you need help with? Let me know by booking a consultation with me through my website https://www.annemariayritys.com Anne-Maria Yritys 2019. All rights reserved. Sole proprietor ID 2988491-1 VAT ID FI29884911

What is Your Purpose & Responsibility in Society?

by Anne-Maria Yritys, posted in Global Economics, Welfare Economics

We Are All Actors. Being a Citizen is Not Living in a Society. It is changing it. (Augusto Boal)

What kind of country do you live in? Are you living in a developing economy, or in a welfare state? Or, in a transitory state? Or, in a failed state? If in a failed state, you are most probably not even capable of reading this post, since a failed state is a) either in some sort of crisis (e.g. war) or b) not allowing its citizens to surf the Internet, or even participate in social networking, and social networking/professional business sites, such as LinkedIn.

Market fundamentalism is out, as is belief in comprehensive state interventionism. (Gylfason & al. Nordics in Global Crisis. Vulnerability and resilience. 2010. 20.)

Whichever kind of state you are living in, it is worthwhile noticing that your state, including its governance and legal aspects, have a major influence upon the economic development, and possibilities, for the country’s citizens. Many citizens in countries, feeling unempowered, believe they have no influence upon their surroundings. This, however non-empowering it may sound, is a false belief. Every citizen has a voice, and the possibility of influencing the economic, and thus societal, developments in their country.

In Welfare States, including Finland (situated in Northern Europe) the outbreak of the financial crisis in 2008, often compared to the Great Slump of 1930 ́s (or even worse), and the economic events of the past years, together with the current economic situation both on micro and macro levels, intertwined with estimates and forecasts for the future have certainly given many, not only economists, but in general citizens of the world food for thought.

Milton Friedman about Welfare State Dynamics

Many countries have been hit hard by the crisis, and have not yet recovered – including several small, open economies, vulnerable to, and severely affected by, global developments. However, some of the shocks were internally created, leaving some of the responsibility of “cleaning up the mess” to domestic institutions, and policies. (Gylfason & al. Nordics in Global Crisis. Vulnerability and resilience. 2010. 21).

Coe, N., Kelly, P., and Yeung H.W.C. Economic Geography: A Contemporary Introduction. 2007, have discussed the role of different kinds of states and firms in the economy, with a purpose to pinpoint how these, together with supra-national institutions, shape economic processes. The discussion about the changing role of the state in an era of globalization, together with the demonstration of why geographical scales matter when re-configuring a state, is also out of most relevance.

A state has several functions:

– A state is the guarantor and institution of economic activities dealing with financial crisis, guaranteeing national economic instruments, securing international economic treaties, property rights and the rule of the law.

– A state is the regulator of economic activities such as market regulation, and the regulation of economic flows.

– A state is the architect of the national economy, including trade policies, strategic industrial policies, attractor of FDI (foreign direct investment), and regional development policies.

– A state is an owner of public enterprises.

– A state is the provider of public goods and services, such as infrastructure, healthcare, transport, and education.

– A state has also political-economic influence upon mergers and acquisitions, through regulatory control.

– On a geographical scale, a state plays a role in international, macro-regional, intra-national, and local levels.

The vast amount of different types of states existing today is divided into:

– Neoliberal states (North America, Western Europe, and Australasia).

– Developmental states (Asia and South America).

– Transitional states (Eastern Europe, Russia, China, Southeast Asia).

– Welfare states (Nordic countries and some European countries).

– Weak and Dependent states and

– Failed states

In a reconfiguration of the state, following can be taken into consideration:

– A State is a dynamic set of institutions.

– The nation-state is a dynamic entity capable of self-transformation

– Rise of corporate power and global finance

– A nation-state is powerless in controlling inward and outward investments, or is it?

– The political-economic geographies, together with the mutually dependent relationship between state/firm

– The different power-relationships between states within the global economy

– The interaction between states/firms/markets.

– Nation-states shape profoundly the economic activity within and across their borders.

– The state itself is always implicated or involved in directing processes through conscious decisions.

– Nation-states remain critical institutions through which international, regional, and local economic issues are evaluated and acted upon.

– Economic governance on international and sub-national scales, upscaling: international organizations such as UN, IMF, World Bank, and WTO, together with macro-regional groupings such as the EU, APEC, NAFTA, ASEAN, NEPAD, SAARC, CARICOM, and MERCOSUR.

– Hollowing out the state = state functions taken over by public-private partnerships and private forms of regulation QUANGO = Quasi-Autonomous Non-Governmental Organizations

– Leading business media Beyond the State?

– State control is uneven in its operation and effectiveness

Traditional welfare states, such as Finland and Sweden, have not avoided the global crisis, the reasons for which include the level of openness, and the dependence on exports of investment goods. Both Finland and Sweden experienced an equally severe slump in the early 1990 ́s with the difference that it was at large homemade. Lessons learned from the 1990 ́s crisis include that early signs of financial fragility need to be taken seriously, and policy planning needs to base upon worst-case scenarios. The current crisis, still ongoing, includes problematic consequences: public finances have deteriorated, unemployment is high, and significant structural changes in the economy are taking place. (Gylfason & al. 2010. 21; 118).

Restoring public finances can be taken care of in many ways, as suggested by Gylfason & al. (2010. 28):

– Public consumption and transfer payments can be cut

– Composition of expenditure directed in a growth-friendly way

– Smooth flow and functioning of infrastructures, including communication

– Well-functioning education system and funding of research

– Broadening the tax base by raising the employment rate

– Changing the structure of taxation in a way that encourages economic growth, i.e. reduction of taxes on productive economic activity, corporate and labor taxes, and an increase in taxes on consumption, natural resources and real estate.

Due to globalization, the mutual interdependence between countries is stronger than ever, suggesting that there is a need for stronger international, and global, cooperation in areas including trade policy, financial regulation and supervision, macroeconomic policy and actions to prevent climate change. (Gylfason & al. 2010. 31).

However complex policies are, the maintenance of a welfare state, and economics, includes the following:

– A democratic system with equal rights and possibilities for all citizens

– A solid infrastructure in terms of access to services such as education, and healthcare

– A balanced economy, with little deficits

– A lucrative, innovative environment attracting FDI and sustainable economic growth

– A taxation policy attracting firms, which in turn create jobs and employ citizens

– A taxation policy that is attractive for all kinds of firms, including small enterprises 

These are measures that, in a welfare economy, are expected to be taken care of by the state, and therefore, through public policies. Firms, on the other hand, choose to operate and invest in markets capable of offering them attractive conditions, and an optimization of factors included in a PESTLE analysis.

However important the role of the state, or a nation, a state is always being constructed by its citizens. Citizens who have the possibility of influencing their direct and indirect surroundings, including their personal lives, their neighborhoods, the politics of their country and so forth. In fact, every single action, and every single effort made by an individual in a country, has direct and indirect impacts upon the developments in the nation in question.

Thus, your personal efforts, however small they may seem, always do have an impact upon the society you are living in. Never underestimate your capability of influencing, changing, and developing society and people around you, because often, small actions and improvements lead to giant leaps and changes in (economic) development.

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I am an international business management professional with an MBA from Haaga-Helia UAS, Finland, communicating fluently in several languages. I am also a certified investment adviser/specialist (Aalto University/Federation of Finnish Financial Services) with years of experience from investments and business advisory services through education and professional activities.  

Currently I study adult pedagogy at Tampere University of Applied Sciences. My vast international experiences and passion for humanity and ethical leadership make me a Global Citizen. I believe that advanced communication, empowerment, continuous learning and development lead to sustainable economic development and a sustainable future for individuals, organizations and nations across our Globe. 

For business inquiries/job offers/projects, please contact me through: 

fi.linkedin.com/in/annemariayritys

Twitter: @annemariayritys

Website: https://www.annemariayritys.com

My previous posts on LinkedIn can be accessed at: 

http://bit.ly/LinkedInPublicationsAMY

 

How Do Technology and Creativity Reshape Economies and Societies in the 21st Century?

by Anne-Maria Yritys, posted in Business Development, Change Management, Global Economics

Followed by the industrialization age, the digital revolution is, and has contributed to major changes in all possible industries globally, given birth to a knowledge economy, where automation and computerization have led to increased productivity resulting in job loss. Technological advancement, with the Internet reaching a critical mass in the early 1990 ́s, has affected and reshaped economies, created new kinds of jobs, giving the opportunity to an emergence of completely new, creative ways of conducting business, networking, and global communications made possible for anyone. 

Automation and global competition has, in the developed economies, led to labor being obliged to move into tasks that are not easily automated. Traditional middle class roles disappear, forcing the affected individuals to become mind workers (knowledge workers), or settle for low-skill, low-wage service jobs.

Although, in many developing countries, agriculture is still the most important source of income, developed countries have for a long time been dependent upon the services industries. In Europe alone, the services sector holds a share of 70,7 % of Europe’s GDP (This Day Live. ILO: Weak Employment Growth Depressing Consumption. 21.10.2014; ESF – European Services Forum. Facts and Figures. 21.10.2014).    

According to Potts J.D. (2009. Why Creative industries matter to Economics of Innovation and New Technology) the service economy is continuously giving birth to new industries, in which creative industries form a significant part. Economic growth and development is an ongoing process, where an evolved order of agents, markets, enterprises, and laws result in an industry. Creative industries literally constantly contribute to creating the future, through experimentation, adoption, and retention of novelty.

In whatever direction evolution is heading, the fact is that the information age has changed, and affected, economies and societies on a global level. Technology has, at least on a virtual level, eradicated distance, affected global trade, given birth to a number of social media platforms and today, global enterprises that, through pioneering, have become global success stories, including names such as eBay, Amazon, Google, Yahoo, Facebook, LinkedIn, Twitter, just to mention a few among many others. 

O ́Brien (1992), presented an idea about a state of economic development where geographical location would no longer matter e.g. in finance, giving rise to “placeless” production, networks, satellites, 24/5 trading in different time zones.  

Technology truly is a social process facilitating and enabling change, including space-shrinking versions and those which change production processes. Technological development has also led to the emergence of completely new industries, such as biotechnology and new (alternative) sources of energy. From an evolutionary perspective, technological development has led to advancement in transportation systems, communication systems, changes in manufacturing processes and spatial disintegration of service activities (offshoring). Production process technologies have evolved from Fordism to After-Fordism, including flexible specialization, Fordist mass production, Japanese Flexible Production, and Just-in-case, and Just-in-time systems. Socioeconomic interaction requires relational thinking, with some operations requiring location, and spatial proximity.

Sources: 

Coe, N., Kelly, P., Yeung, H.W.C. Economic Geography: A Contemporary Introduction. 2007. Quoted 21.10.2014. 

Creativeclass.com. Services and Economic Development. Quoted 21.10.2014. 

ESF (European Services Forum). Facts and Figures. Quoted 21.10.2014. 

Potts, J. 2009. Why creative industries matter to economic evolution. Economics of Innovation and New Technology. Quoted 21.10.2014. 

Technology Source.org. Technology and Change for the Information Age. Quoted 21.10.2014. 

This Day Live. ILO: Weak Employment Growth Depressing Consumption. Quoted 21.10.2014. 

Wikipedia. Information Age. Quoted 21.10.2014. 

Wikipedia. The Wealth of Networks: How Social Production Transforms Markets and Freedom. Benkler, Y. 2006. Quoted 21.10.2014.  

World Bank. Growth of the Service Sector. Quoted 21.10.2014. 

 

What is Successful Change Leadership?

by Anne-Maria Yritys, posted in Authentic Leadership, Building Dialogue, Change Management, Communication Skills

Change Leadership, in its very essence, should focus upon improvement and growth. Without an actual purpose, and driving change only for the sake of change, change is a waste of everyone’s time.

Well organized is half done, but only very successful plans always have space for modifications. Only geniuses can master chaos, and however much we love agile project management, an essential skill for any change leader is the ability of focusing on key strategic issues, drive change with a dynamic effort, and with the goal in mind. (Green, M. Change Management Masterclass. 2007.)

Leading change equals the ability of leading development through enabling continuous growth, and improvement. Leading change is also strategy, and an ability of analyzing the PESTLE environment. In organizational settings, change management programs and projects need to be based upon the organization’s vision, mission, and strategy. Change projects, however narrow or extensive, will be successful when core values, goals, constant work, and communication are well aligned. Depending upon the needs and the breadth of the change initiative, mobilizing everyone involved is of utmost importance. In the organizational setting, change has to be led simultaneously and with consistent throughout the whole organization, and on an individual level. Traditionally, change has been thought of as something activated and triggered from top management, but in today’s learning organizations change initiatives can come from anyone, and basically anyone in an organization can be a change agent, formally or informally. In any organization, it is important for management to understand, that the needs for change may also be communicated from employees who are in direct customer contact, e.g. based upon feedback from customers. Therefore, in traditional, hierarchical settings, change can very well be initiated from a “lower” organizational level upwards. In democratic, low-hierarchy organizations, change projects can be successfully executed through participation of everyone involved. Successful involvement also increases the level of integrity. The most successful organizations also know how to involve their clients when driving change.  

 

                   “One person can be a change catalyst, a transformer in any situation, any organization. Such an individual is yeast that can leaven an entire loaf. It requires vision, initiative, patience, respect, persistence, courage, and faith to be a transforming leader”. (Mike Green. Change Management Masterclass. 2007)

Successful change management projects do require realistic, but also optimistic individuals with a strong desire for achievement. Change management also requires a lot of dreaming, and daring. A change project must be managed skillfully, and if there is a strict budget, it is even more important to meet the financial target. However, how can the final financial gain be calculated if the project is successful in for example advancement of knowledge and learning, or even satisfaction index of employees? If the organization e.g. sets a goal to develop sales skills, the return on investment may be a lot better than first calculated. Therefore, e.g. employee development is a very important factor for organizational development. 

In short, before becoming a change agent and thus a catalyst for change, practice on your pitch and make sure to have responses to the following questions:  

– What kind of change do I want to initiate?

– What are the circumstances (i.e. am I acting as an informal/formal change agent, and in what kind of setting, e.g. as an entrepreneur, a consultant, an employee, a middle manager, a customer/client, a member of an organization, a citizen and so on)?

– Who do I need to involve in successfully driving the change initiative? 

– What is/are the goal/s? 

– What kinds of risks are involved (if any)?

– What kind of communication does this require, and how will I communicate successfully?

 

 

 

How to Identify Weak Signals Before They Become Strong Trends?

by Anne-Maria Yritys, posted in Change Management, Futurology, Global Economics

“Interpreting weak signals into useful decision-making takes time and focus. It starts with the capacity of identifying them in the first place”. 

Weak signals are first symptoms or early signals of a change telling about a strengthening trend and bringing information that is not yet seen e.g. in statistics. Usually, there are several signals indicating to a similar development. Weak signals have to pass filters in order to influence the strategy process, being the phenomena that influence a company and its operational environment by being new and surprising in the framework of the receiver. 

Weak signals reveal threats and opportunities for a company, but also represent a chance to learn, grow and develop. They could also be defined wild cards that change the development and are unpredictable when turning up. Weak signals are events below the surface, overlooked, but that may be signs of big evolution. The approach to weak signals is experiencing a renaissance in strategic planning and they are to be found in the context of strategic flexibility of an organization. Successful organizations look for weak signals actively and continuously. As decision-making is a sense-making process, management has to secure the flow of knowledge from outside to the business and decide the actions based on it.

A weak signal has no history and no basis to build a pattern onto. They are unique, and not recurring. A weak signal can be recognized by its strangeness and its being an odd phenomenon. In order to be able to recognize weak signals one has to have a sufficient level of understanding firstly in that behind each change there are several driving factors and on the other hand by the fact that each emerging fact signals its environment in many different ways. No signals should be rejected in advance. The recognition, analysis and interpretation of each signal are only work processes that follow the creative and unbiased observation period.

In general, possible identification and interpretation methods of weak signals are: Think-tank groups, brainstorming, Delphi method, or a pattern management framework, which means collecting signs of weak signals from magazines, mainly economically related. General observations from one’s surroundings and environment are another way of identifying weak signals.

In the analysis of weak signals, it is useful to take into consideration at least the following: 

– To whom and for whom weak signals are identified? 

– How comprehensive/wide is the search area and fields? 

– How complete is the analysis?

The identification process of weak signals occurs before or simultaneously with an identification of trends. In a Delphi-study, experts must decide when a phenomenon should be defined as a weak signal. Challenges occur, when weak signals are not searched in right places or enough (detection filter). This is also the case when right persons are not looking for them (interpretation filter). Another challenge could be that discovered findings or made interpretations are invalidated or denied (power filter). To succeed in the identification, the identifier of weak signals should have a position or forum where to tell about opinions and impressions freely. The organization in question should be receiving and the environment should enhance creativity.

Most issues change very slowly while some are expected to change fast and very radically. Others are expected to remain always the same. Surprises may come from foreseeable sources that change slowly (e.g. China phenomenon, virtual technology, globalization and EU-integration). Common issues that may face surprising changes are the importance of home, the conception of time, importance of salary or money, ownership and ethics.

Pattern management (Kuosa 2010) suggests that the existence of phenomena is concluded in the same way as the existence of black holes or planets of near-by solar systems by observation of refraction of light, changes in the orbits of near-by planets, quantity and movement of energy etc. It uses the same way that also phenomena in our own operation environment can be concluded. There clearly exists information and signals in our environment that belong together and can be clustered. Several phenomena can rise from one observation. Phenomenon emerges through signal observation.

 

1.Totally unexpected

Observation is not linked to any other known clear trend

 2. Changes in trends

Observation indicates a change in trends
3. Drivers of change

Phenomenon that leads to an observation or has a legal commission

 4. What keeps us in the old?

Trends, mega trends and main stream

Figure: Four-step observation frame for weak signals (Source: Tuomo Kuosa). 

Weak signals are a continuous or non-stop process which should be taken seriously in any sector of business. The anticipation phase shows the opportunities of the future and helps in minimizing risks. The appropriation phase is where strategies are made by realizing how the future might affect the community in question. In the action phase, changes of the future and effects of chosen policies and operations are carried out in practice. As an example – although it might seem that e.g. the financial sector is static, there are always changes taking place, and these changes are caused by the actions of human beings not only in the industry itself, but by everyone who is somehow involved in the financial sector. A bank itself would be no bank without investors, loan takers, private persons keeping their money on their account etc. This is why the financial sector is as vulnerable as any other industry, and should respond to the market in a similar way as any other sector of business. 

(Pfeffer, J. & Sutton, R.I. 2000. The Knowing-Doing Gap. How Smart Companies Turn Knowledge into Action. Boston: Harvard Business School Press;Kamppinen, M., Kuusi, O., Söderlund, S. 2002. Tulevaisuudentutkimus. Perusteet ja sovellukset. Senior, Barbara and Fleming, Jocelyne, 2006. Organizational Change. 3rd Edition. FT Prentice Hall; Kuosa, T. 2012. The Evolution of Strategic Foresight – Alternative Futures).

 

 

 

How Can You Become a Master Alchemist and Transmute Everything You Touch into Gold?

by Anne-Maria Yritys, posted in Authentic Leadership, Business Ethics, Change Management, Global Awareness

“Midas (Μίδας), a King of great fortune in the Greek Mythology, had everything a King could ever wish for. His life was surrounded by luxury in a great castle, and filled with abundance. Midas, spelled by gold, spent all his days counting his gold coins. He also enjoyed covering his body with gold objects, desiring to bathe in them, and obsessed with money.” 

One day, Dionysus, the god of wine, passed through the Kingdom of Midas. One of his companions, a satyr named Silenus, got delayed along the path. Silenus got tired, deciding to have some rest in the famous rose gardens surrounding King Midas ́ palace. Napping there, he was found by the King, who invited him to spend a few days at his palace. The days went by, and finally Midas brought Silenus back to Dionysus. The god of celebration, thankful to Midas for his kindness, promised Midas to satisfy any of his wishes. Midas, after a while of reflection, responded: “I hope that everything I touch becomes gold”. Dionysus warned the King, stating that he should think well about what he wished for, but Midas was certain. Obeying the King ́s wishes, Dionysus had no choice but to promise Midas that from that day on, everything he touched would turn into gold.

The following day Midas woke up eager to see if his wish would come true, extending his arm, and touching a small table immediately turning into gold. Jumping with happiness, Midas continued by touching everything around him, turning everything he touched into gold. At the breakfast table, he took a rose in his hands to smell its delicate fragrance. As you already can guess by now, the rose turned into gold, leaving Midas feeling disappointed. The same happened with his bread, and water, which made Midas feel fearful. With tears in his eyes, he hugged his daughter who had just entered the room, and she turned into a golden statue. In despair, Midas raised his arms, praying to Dionysus to remove the curse. Dionysus felt sorry for Midas, and told him to go to the river Pactolus to wash his hands. Listening to Dionysus advice this time, Midas did what he was told. After washing his hands in the river, everything went back to normal. Filled with joy, Midas hugged his beloved daughter, and decided to share his great fortune with his people. From that day on, Midas turned into a better person, generous and grateful for all goods of his life. With his help, the people of his Kingdom led a prosperous life”. (greeka.com. Quoted 14.10.2014).

 

Lessons of the story? Plenty:

– Be careful what you wish for – it may come true. 

– Learn to appreciate the differences around you, including things that may feel small, but are important in the cycle of life. 

– Listen to people, and people ́s advice (your personal advisers/trusted person/consultant, who or whatever that may be in your life/career). 

– Lead with your heart, and have respect for the people around you. 

– Take responsibility for your actions. 

– Being greedy can be destructive for the environment. 

– Being self-centered can be destructive for relationships.

– When accumulating wealth, do it for a good reason. 

– When accumulating wealth, be prepared and ready to share, help, and use your wealth for increasing prosperity for everyone, thus improving other people’s lives as well.

– Money is not the key to happiness. 

– Everyone makes mistakes. Mistakes are usually keys to (personal) development. Just make sure that you do not make mistakes that others have to pay for, or mistakes that have a disastrous effect on e.g. the environment. 

And, finally: You cannot eat gold!

 

Influence, Manipulation, Something Inbetween or Neither One?

by Anne-Maria Yritys, posted in Authentic Leadership, Change Management, Communication Skills, Influence, Leadership Skills and Qualities, Life Coaching, Manipulation

“There is no such thing as a good influence. To influence a person is to give him one’s own soul. He does not think his natural thoughts, or burn with his natural passions. His virtues are not real to him. His sins, if there are such things as sins, are borrowed. He becomes an echo of someone else’s music, an actor of a part that has not been written for him”.

(Oscar Wilde, The Picture of Dorian Gray)

 

Do you agree with Oscar Wilde´s citation? That good influence does not exist, since the purpose of all influence is to transfer one person´s feelings and ideas to another person, thus affecting the other person´s behavior? 

 

One thing is for sure: Oscar Wilde´s words include a lot of truth. With our feelings, thoughts, knowledge and actions we all do have more or less influence on people around us. The line between influence and manipulation, however, is often quite subtle. And the difference between influence and manipulation is merely that influence is often regarded as being something positive, while manipulation, a term originating from the Latin word manus (hand), means processing, and very often has a negative meaning while it refers to misleading, or forgery of evidence. Manipulation can also refer to concrete handling of something, e.g. the manipulation of stock markets. There are definitely many kinds of manipulation, such as magician card tricks. In this post, however, I refer to psychological manipulation, which actively aims at having an effect on someone´s, or something´s, behavior and thoughts.  

 

Influence, on the other hand, is the power of affecting, controlling or manipulating someone, or something; the ability of triggering change in the development of fluctuation in things, including thoughts, or decisions. Thus, manipulation can be regarded as the negative version of influence, although even influence itself can be regarded less positive. 

 

Influence can be actual, bad, beneficial, big, cultural, economic, good, harmful, heavy, huge, important, intellectual, mental, military, moral, negative, personal, positive, potential, primary, significant, social…and much more. 

 

Influence and manipulation are constant energies in our societies, and environments, starting from a crying baby´s cradle trying to manipulate (or influence?) its parents towards an action. Hence, the most primary ways of manipulation and influence can be observed in a child´s world. At least one could think so. However, very primitive influencing and manipulation techniques exist in all age groups, depending upon many different factors, such as an individual´s learned patterns, defense mechanisms, sense of self, morals, and ethics. An individual usually behaves in a way that he/she thinks is correct, without perhaps knowing or understanding better. Thus, bad influence and bad manipulation, unfortunately, together with primitive behavior, equally exists amongst all age groups. 

 

How can we learn to identify different ways of manipulation, and influence? And how can we cope with these? How can we make sure not to be the one´s negatively influencing, or manipulating other people, organizations, whole societies, or e.g. the economy? 

 

There are no simple responses to these questions. Since manipulation, and influence, both occur on a common level in our societies, it can often even be difficult to take notice when someone, or something, is influencing or manipulating you. Very often people influence or manipulate us without even noticing it themselves. Therefore, both influence and manipulation can happen somewhat by mistake.

 

A good guide for protecting yourself against both influence, and manipulation, is to listen to your intuition, and feelings. Another important thing is to stay grounded, and centered – again, listening to your intuition and your feelings rather than being too much affected by external sources or distractions. It is of course possible to learn these through experience, which can sometimes be a tough life lesson, especially if you are someone who is easily influenced or manipulated. There is much literature available upon influence and manipulation, the different types of both, and how to respond to either external influence or manipulation. 

 

Leading by example and being a positive role model is a way of making sure that you are not the one with the negative influence (or manipulation). Changing other people is impossible. Therefore, if we wish to trigger positive change, and be role models, we need to work on ourselves, on our behavior, our actions, our personal wisdom, and on our growth as responsible individuals in our societies. 

 “How people treat you is their karma; how you react is yours”.

(Dr. Wayne W. Dyer)

 

 

 

How Do We Measure Intellectual Capital in Business?

by Anne-Maria Yritys, posted in Change Management

“There is less to fear from outside competition than from inside inefficiency, miscalculation, lack of knowledge. Beat your competitors with the knowledge edge. Train your staff”. 

A business can be only as successful as its weakest link, and the results can be measured through various kinds of tools, such as employee productivity, which consists of the human capital part of the enterprise. Human capital is generally thought of as a value including employee skills, know-how, and expertise. But in addition, human capital includes employee motivation. In addition, human capital is an organization’s capability for solving business problems, thus exploiting its intellectual property.

Measuring intellectual capital in any business is not as easy as e.g. measuring the firm’s fixed assets and properties. However, smart firms know how to value and to retain their employees, investing in intellectual capital and knowledge in the first place. 

When employees leave their work, human capital, and thus knowledge, is being lost. A high staff turnover rate, low motivation, and low productivity, are signs for a firm’s management to take a look in the mirror and define what changes need to be taken in order to improve the state of the firm’s human capital. At its best, human capital can be measured by a significant amount of creativity and innovation in a firm, a safe and open-work atmosphere, where knowledge is being shared and development takes place not only through organized training, but also through natural evolution and learning by doing, experience, and fun. 

Further on, IC includes a firm’s infrastructure, enabling its human capital to operate productively. Structural capital includes processes, patents, trademarks, the organization’s image, organization, information systems, and proprietary software and databases. And finally, relational capital in a business consists of its networks, and relationships, as well as possible trademarks and trade names. Goodwill is another term for the value of the firm ́s relationships.

Knowledge Management, a process of capturing, developing, sharing, and effectively using organizational knowledge, has become an important tool for optimizing the values of intellectual capital in a business. Mostly implemented through business strategy, IT, or HRM departments in large organizations, KM is also a valuable tool for any small firm and/or startup. When knowledge management, and intellectual capital, is integrated to business at an early stage, these powerful intangible assets can be optimized in order to create long-term success for any organization. 

According to Jurczak (2008), intellectual capital can be measured through various means, such as Direct Intellectual Capital Methods (DICM), Market Capitalization Methods (MCM), Return on Assets Methods (ROA), Scorecard Methods (SC). 

More specifically, ROA Methodologies include following tools: Economic Value Added (EVA), Human Resource Costing and Accounting (HRCA), Calculated Intangible Value, Knowledge Capital Earnings, Value Added Intellectual Coefficient (VAIC), Accounting for the Future (AFTF), Tobin ́s q, Investor Assigned Market Value (IAMV), Market-to-Book Value.

DIC Methodologies, in turn, include: Technology Broker, Citation-Weighted Patents, The Value Explorer, Intellectual Asset Valuation, and Total Value Creation (TVC). 

SC methodologies: Human Capital Intelligence, Sandia Navigator, Value Chain Scorecard, Intangible Asset Monitor, Intellectual Capital Navigator and Intellectual Capital Index (IC Index), Value Creation Index, Balanced Scorecard. 

Many of the tools and measurement methods may sound rather fine and abstract, far from e.g. a small business owner ́s daily running of business. Some of the previously mentioned measurement tools are in more common use than others. Whichever your business chooses to use (or if you prefer creating your personalized tools), measuring intellectual capital and the efficiency of knowledge management in your business is definitely a way of increasing productivity and in achieving better results. 

For further interest in knowledge management and intellectual capital, there is plenty of literature available upon both topics, e.g. by Sveiby, K-E., and Nonaka, I.

 

“Knowledge is power” Sir Francis Bacon 

 

 

How Can You Shrink The Gap Between Knowing And Doing?

by Anne-Maria Yritys, posted in Authentic Leadership, Change Management, Leadership Skills and Qualities, Life Coaching

“Character is doing the right thing when nobody’s looking. There are too many people who think that the only thing that’s right is to get by, and the only thing that’s wrong is to get caught”. (J.C. Watts)

Pfeffer and Sutton (Harvard Business School Press 2000), have in their publication “The Knowing-Doing Gap – How Smart Companies Turn Knowledge into Action” addressed something very relevant. Not only is this book useful for enterprises, but also for organizations, governments, societies, and for an individual ́s personal life. The basic facts and ideas can be used as an effective change tool, applied and lived by every day, and in long-term planning. 

The Knowing-Doing Gap signifies a gap between our thoughts/knowledge and our actions. Many people are aware of their actions, yet are not always capable of changing themselves. Others are not even aware of some of their actions, yet about the consequences. Unfortunately, the latter applies to too many of us. Why?

It is a fact that most of us are aware of grievances, be it in our personal lives, in our neighborhood, in our city, at school, in our workplace, or in society in general. This is the KNOWLEDGE part Knowing-Doing Gap. 

DOING, or taking ACTION, in order to improve things – could be in personal life, in someone else’s life, correcting iniquities, working towards improving e.g. work processes and or workplace circumstances, taking action to improve the state of e.g. the environment, human rights issues, developing authentic leadership and so on – is the ACTIVE part of the Knowing-Doing Gap. 

We are all aware of the fact that in order to change things, and circumstances, improving conditions be it in our own lives, in education, at work, in society, we need to take action, instead of just waiting for something to happen. 

Remember, a journey of a thousand miles begins with a single step. 

The actions must not always be big. What is important, is to overcome inactivity, procrastination, and fear. Be willing to step up, step forward, and start by influencing things you can influence, and taking those steps you are capable of taking. Do not be afraid, instead, challenge your fears and notice how your life and surrounding changes as you begin living, and working, for the things you believe in. Very often, you will take two steps forward and one step back, but do not let it stop you. Every small progress counts, every little action in order to improve things – anything. 

“You don’t make progress by standing on the sidelines, whimpering and complaining. You make progress by implementing ideas. (Shirley Chisholm)

 

 

 

Influencing Positive Change In The World Through Global Education

by Anne-Maria Yritys, posted in Authentic Leadership, Business Ethics, Change Management, Global Awareness, Global Citizenship, Global Education, Reducing Poverty, Thought Leadership, UN Millenium Development Goals

A few weeks ago the UN Association of Finland organized a school visitation education in Turku, the purpose of which is to educate volunteers willing to visit schools in order to share information about the UN, its principles, and its goals as a non-governmental organization.

In Finland, UN school visitors can be requested through the UNA of Finland:

http://www.ykliitto.fi/koulutus-ja-oppimateriaalit?language=fi

School visits are open and available to all kinds of educational institutions and tailored according to the age and interest of the pupils/students. The visit can include general facts about the UN and its activities, or be focused around a specific topic, e.g. the UN Millennium Development Goals 2000.

Founded in 1945 after the Second World War by 51 states to protect the world from new wars, the UN (United Nations) is the world´s most important co-operational organization. Over the course of the years the UN has of course changed and developed, trying to adjust its operations according to the most important needs and most urgent matters of its member states. In 2013, the UN had 193 member states.

The main goals of the UN are:

– To maintain international peace and security through peaceful means in solving disputes and conflicts

– To develop friendly relations between nations (autonomy and equal rights)

– Generate and accomplish co-operation to solve economical, social, cultural and humanitarian problems

– To advance human rights and their universality

– To serve as a co-operational centre for all nations

According to the principles of the UN, all member nations are plenipotentiary and equal, must fulfill the obligations of the UN Charter, resolve all international conflicts with peaceful means, and help the UN in all actions taken by the UN according to its Charter.

The main bodies of the UN are:

– The General Assembly

– The Security Council

– ECOSOC (the Economic and Social Council)

– The Secretariat

– The International Court of Justice

– The Trusteeship Council

(Sources: Leisma, 2009; printed material produced by the UN Association of Finland).

The previously mentioned UN Millennium Development Goals 2000 are:

1. Eradication of extreme hunger and poverty

2. Achievement of Universal Primary Education

3. Promotion of Gender Equality and Empowering Women

4. Reduction of Child Mortality

5. Improvement of Maternal Health

6. Combating HIV/AIDS, Malaria and other Diseases

7. Ensuring Environmental Sustainability

8. Global Partnership for Development

(Source: UNA printed material, UN Millennium Development Goals website, quoted 16.4.2014).

Wide-ranged and large goals, but perfectly achievable with commitment from all UN member nations.

Are we close to achieving these goals, or have we already achieved some of them?

I will discuss each of these goals separately in my upcoming posts, with facts and personal thoughts.

 

“Look Before You Leap For As You Sow, Ye Are Like To Reap”

by Anne-Maria Yritys, posted in CSR, Responsible Investing

Would you volunteer to jump into a body of water swarming with piranhas? 

I thought so too. 

The same goes for any kind of action regarding decision-making in your life. Think before you act, so that you don´t act before you think. The importance of an analytical thinking process before making a decision of course depends upon the complexity of the decision, the risks included, and the possible final outcome. Over-analyzing simple matters can be as harmful, since it may just lead to procrastination and an inability of decision-making in the first place. But the more complex and responsible the decision, an amount of reflection is beneficial before taking action. When not certain about something, consult someone with more knowledge, and someone you can trust. 
In the world of investing, plenty of choices are at hand. There are many forms of investing too, such as investing in intellectual capital and in increasing personal knowledge, investing in human resources, investing in your children´s futures, investing in real estate or buying a home, investing in your personal health, and so on. Here, I refer to investing in different kinds of securities, such as funds and stocks. There are a number of key ratios that investors commonly get familiar with before investing in a specific security, be it a fund or a stock. These include terms such as P/E, TER, ROCE, ROE, QR, Current Ratio, EBITDA, volatility index, asset class, benchmark, small-cap, large-cap, blue chip, maturity, trustee, and the list goes on. For any investor, it is a good idea to have some kind of understanding about the principles of securities investing. If not, better make sure to choose a service provider who is either willing to explain these to you in a comprehensive way – or, choose a service provider who you are willing to trust enough even without understanding. Either way, as a customer you will need to sign agreements where you approve that you have understood what you are investing in. 

Before investing/signing agreements, there are a couple of other factors to take into consideration: 

– Understanding what the security consists of. I.e. if it is a fund, what is the fund policy? 

– With direct stock investing, having access to the company´s annual report, most preferably including an HR report (with information about staff policies, staff turnover rates etc.), and a CSR (Corporate Social Responsibility) report.  The CSR report could also be named CSR and Sustainability Report, depending upon the company. 
The CSR Report can include a number of themes, such as the company´s philosophy in and towards sustainable business processes, what kind of actions are being taken at different stages in production with regard upon e.g. environmental and human rights issues, governance and transparency structures, codes of conduct, code of ethics. Progressive companies, and “trend setters”, are aligning their reporting practices with e.g. a Global Reporting Initiatives (GRI) and UN Principles for Responsible Investing (PRI). 

“For those who are skeptical about socially responsible investing and business practices: There are three steps in the revelation of any truth; in the 1st, it is ridiculed; in the 2nd, resisted; in the 3rd, it is considered self-evident”.

(A. Schopenhauer)

This blog post has been written only for informational purposes, and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security, product, service or investment. The opinions expressed in this post do not constitute investment advice. The information provided herein or in any communication possibly linked to this blog post is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation. Neither the information, nor any opinion contained in this post constitutes a solicitation or offer by the author to buy or sell any securities, futures, options, shares, funds, or other financial instruments or provide any investment advice or service.