The diverse cultures of cricket

5 September 2014 by in Business and finance, The Diversity Dashboard

England cricket fans, administrators and players already reeling from their drubbing in the latest ODI series that ends in Leeds today should consult The Diversity Dashboard by Deborah Swallow and Eilidh Milnes. Whatever today’s result England have already been hammered by an Indian team that oozes confidence, aggression and commitment. Captained by M S Dhoni, arguably India’s best captain ever, it is likely that India will inflict a humiliating whitewash on a troubled England one-day set up today. They have their eye on next year’s world cup of course but they are looking much further ahead than that. Perhaps the difference is essentially cultural. Here are Swallow and Milnes on one difference between British and subcontinental mindsets:

Culture crash
Patrick was surprised there hadn’t been more changes since the takeover. He had expected that at least a few heads would have rolled, but here they were, all the old senior management team, waiting for a meeting with the new CEO. It seemed the new Indian owners of the British steel works had a real laissez-faire attitude to their take over. Patrick presented his new business plan and spoke about the investment needed over the next five years. He was prepared and ready for questions – except for the two he got: ‘Why have you only planned for five years?’ and ‘What would the plan look like if we doubled the investment?’

Culture tip
Asian cultures have a long-term orientation. Success will come in time with sustained effort. In these organizations, managers are allowed time and resources to make their own contributions. Measures such as market position, sales growth, and customer satisfaction are key in evaluating business performance. These take time to realize and are more important than short-term results. Asians accept deferred gratification of needs. There is an investment in lifelong personal networks and sensitivity to the interrelatedness of social and business contacts.

Perhaps Ashley Giles should take note.

Diversity Dashboard order

Tony Blair’s sticking to his story

3 September 2014 by in Book publishing, Business and finance, Current events

We were all as baffled as the rest of the world to wake up this morning and find out that Tony Blair has won the GQ Award for philanthropist of the year. We’re sure the prestigious award will look just lovely in his million-pound mansion, though he should probably leave space for his imminent receipt of the Nobel Peace Prize.

Whatever we think, he’s clearly convinced the folks at GQ that he’s the real deal. Perhaps Tony is just not telling the rest of us everything about his missions in the Middle East, where he can hardly be hailed as a hero and saviour. But GQ’s woman of the year, Kim Kardashian, will undoubtedly be able to give him some tips on how to look good for the cameras while the world reels in confusion at his latest achievement.

There’s something … Machiavellian about Blair’s rise (and continued rise) from humble Prime Minister to all out celebrity philanthropist saving the Middle East. Yet, as long as he sticks to his original story, surely he is out of danger of being accused of having acted in haste in 2003 in Iraq.

Tim Phillips’ modern interpretation of Machiavelli’s The Prince, points out the value of taking control of your own story and using PR to its maximum effect. It’s all about the spin, and clearly something that Tony has learned well from. He could yet change our minds if he sticks to his guns:

Great leaders through the years have understood the value of propaganda. Machiavelli knew equally well just how important it was to control the way the story was told. ‘Nowadays, for all rulers … it is more necessary to satisfy the people than the soldiers, because the people are more powerful,’ he reminds us.

On 9 April 2003 a large statue of Saddam Hussein in Baghdad’s Firdus Square directly in front of the Palestine Hotel – where the world’s journalists were staying – was dragged to the ground by a furious mob of Iraqis, aided, after long struggles, by an American tank. The citizens chopped off the statue’s head and dragged it through the streets. A marine covered the face of the statue with an American flag. All over the world people watched broadcasts of Iraqis taking off their shoes and using them to slap the fallen statue of Saddam. For days the newspapers and magazines carried the images, too.

But were they the truth? We may never know for sure. Since the event, there have been many reports of the involvement of the US Army in the planning of the ‘spontaneous’ event. The Los Angeles Times reported that a US Marine Colonel had masterminded the planning, and US Army loudspeakers had encouraged the crowd of citizens to join in.

Whatever the exact level of planning, it was a masterpiece of propaganda. It was a highly symbolic event; it happened in exactly the place that would guarantee the maximum level of publicity and it sent an emotional message that couldn’t fail to be understood.

Today, we’re all telling stories. People email, gossip, blog, text, instant message and chat. We have twenty-four-hour news channels that have to report something, even when there’s nothing to report. The average employee is spending sixty-five hours a year gossiping at work, according to a survey by the communications company Equisys. And then there are your suppliers, customers, investors, recruiters and advisors all doing the same about you. Viral marketing, as it is called, is simply word of mouth given a fancy title.

Stick your head above the parapet and someone’s going to review you, write a blog about you or organise a protest about you.

Someone’s going to control this story. If you’re in charge, it had better be you. Today it’s not just the military that uses propaganda; secretive companies like Strategic Communication Laboratories are confidentially employed by everyone from consumer products companies to the United Nations.

Get over the idea that propaganda equals bad. It can stop panic when there’s bad news and make sure more people hear the good news. This stuff doesn’t happen by chance. You need to plan it, exactly as you would any other part of your business.

The Infinite Success series

Football business: transfer deadline day

1 September 2014 by in Business and finance, Football Business

It’s transfer deadline day. Now that the world cup is over, the Premiership Autumn season is beginning.We’ve already heard about Balotelli’s move to Liverpool, Sanchez to Arsenal and Diego Costa to Chelsea. The English teams’ injection of European talent will undoubtedly shake up the football season over the next few months.

Until midnight tonight, fans will be refreshing twitter and glued to Sky Sports News to keep up to date with the latest changes, panic buys and assess Harry Redknap’s coping techniques. Such is the importance of the premier league to the fans. Emotional, not to mention financial, investment in teams and payers is huge.

The transfer fees spent on these top players sound like monopoly money to the majority of us, but why are the sums involved so huge? In his new book, Football business, Tsjalle Van Der Burg looks back at the reasons transfer fees are so high, and why clubs are in such a rush to sell off their players before their contracts expire.

Jean-Marc Bosman was a player with Belgian club RC Liège. In 1990 his contract expired and he wanted to move to the French club Dunkerque. However, he was unable to do so because Liège demanded too high a transfer fee. Bosman took his club to court. The case eventually went to the European Court of Justice, the highest court of the EU. Bosman invoked the principle of free movement of workers, which had been part of European law since 1957. In 1995, after five years of legal struggle, the Court vindicated Bosman: it ruled that players whose contracts had expired could move clubs on free transfers. This ruling will remain in force as long as European law is not amended.

The ruling has not only affected out-of-contract players; it has also had a moderating effect on the transfer sums paid for players with ongoing contracts. The reason is that clubs feel pressure to sell a player at a relatively early stage, for fear that he will otherwise leave on a free transfer. To be clear: this is not to say that the total of all transfer fees has fallen since 1995. On the contrary, it has risen. But that is because all the clubs now have more money than they did in 1995. However, total transfer fees would have been higher still if there had been no Bosman ruling.

The ruling has ensured that the big clubs can more easily lure good players away from the small clubs. As a result, the most talented players tend to move to the big clubs at a younger age. The ruling hits the poor clubs hardest; they receive less money from transfers than would have been the case without the ruling. This makes it hard for those clubs to maintain the quality of their sides, because they need a lot of money to pay today’s high player wages. Sometimes clubs overcome the problem of the Bosman ruling with long-term contracts. But these can also work to their disadvantage: if a player fails to fulfil his promise his club may nevertheless have to continue paying his wages for years. All in all, the ruling has weakened the transfer system and it has added to the competitive inequality. 

Since 1995 there have been some other, smaller changes in the transfer system as a result of pressure from the EU. For instance, the EU, FIFA and UEFA have agreed that the duration of a contract should be a maximum of five years. It has also been agreed that contracts have to be protected for a period of three years for players up to the age of twenty-eight, and two years for older players. Until now this rule has had little practical effect due to its vagueness; it is not clear exactly what the legal rights of club and player are when a player has served three years of a five-year contract, or two years if he is an older player.

However, it is possible that, in such cases, the maximum transfer fee will become equal to the salary the player would have earned in the remaining years of his contract. This will have a downward effect on transfer fees, and so football will become a bit less competitive still, thanks to the EU.

It is debatable whether the contracts involved are really worth what’s paid for them, and Van der Burg would argue that football has not necessarily been made more exciting or competitive as a result of the massive amounts of cash now spent by clubs. What is clear is that, come midnight tonight, in the final frenzy of buying and selling, there will be new and exciting players waiting to shake up the premiership and make for another thrilling season.

Football business

FREE: Richard Mayson’s guide to vintage port

29 August 2014 by in Wine and spirits

Richard Mayson’s Guide to Vintage Port is the most up-to-date, authoritative information source on vintage Port and its producers, and Infinite Ideas is making it available free of charge as a PDF or ebook.

Updated on a twice yearly basis the directory also contains an introduction to the production of VP and expert tasting notes, drawn from the latest edition of Richard’s prize-winning Port and the Douro, published by Infinite Ideas in its Classic Wine Library.

cover

Richard Mayson’s Guide to Vintage Port is an invaluable resource for anyone who is interested in a free and regularly updated information source on vintage Port, and particularly:

  • Bar managers, supervisors and head bartenders
  • Hoteliers
  • Sommeliers
  • Restaurant managers
  • buyers and all Port enthusiasts.

This directory of vintage Ports is the fruit of the author’s thirty years’ experience in writing about Portuguese wine, visiting the producers and discussing their products with them. The guide to Port vintages takes each year in turn, noting relevant weather conditions, market considerations and the overall style of the wines, and highlights particularly successful shippers. Richard assesses each and every year back to 1960, which roughly coincides with the emergence of single-quinta vintage Port (SQVP) in between fully fledged declarations.

Richard Mayson’s Guide to Vintage Port provides full contact details and tasting notes for over 50 vintage Port producers and shippers.

To find out more about this unique resource you can download a copy from our website. Richard Mayson’s Guide to Vintage Port is available as a paperback, PDF or ebook.

Richard Mayson is a champion of a wine culture and a fresh and authoritative voice in wine literature.” Hugh Johnson

Richard Mayson has worked as a freelance wine writer and lecturer since 1989. His first book, the award-winning Portugal’s Wines and Wine- Makers, was published in 1992. He also wrote The Story of Dow’s Port, published to coincide with the company’s bi-centenary in 1998. The first edition of Port and the Douro, published in 1999, was short-listed for the Andre Simon Award and the second edition, published in 2004, won the Symington Award of Excellence. His book The Wines and Vineyards of Portugal won the André Simon Award for the Drinks Book of the Year in 2003.

Richard has contributed to a number of publications, including the Oxford Companion to Wine and the Larousse Encyclopaedia of Wine. He writes regularly for Decanter and the World of Fine Wine, and lectures toWine and Spirit Education Trust students and at Leith’s School of Food and Wine in London. Richard currently divides his time between his home and business interests in the Derbyshire Peak District and the Alentejo, Portugal where he owns a vineyard. In 1999 he became a Cavaleiro of the Confraria do Vinho do Porto.

Richard Mayson has been shortlisted for the International Wine Feature Writer of the Year, Louis Roederer Champagne 10th International Wine Writers’ Award 2014.

 

 

Top 10 management models for your business #7: Situational crisis communication theory, Timothy Coombs (1995)

27 August 2014 by in 100+ Management Models, Business and finance

by Fons Trompenaars and Piet Hein Coebergh, co-authors of 100+ Management Models.

Situational crisis communication theory

Problem statement
How should an organization communicate during a crisis?

Essence
According to Timothy Coombs, crises are negative events that cause stakeholders to make ‘attributions’ (interpretations) about crisis responsibility, affecting how stakeholders interact with the organization. Attribution theory holds that people constantly look to find causes, or make attributions, for different events, especially if those events are negative or unexpected. In his situational crisis communication theory (SCCT), Coombs suggests that effective crisis response depends on the assessment of the situation and the related reputational threat.

To support this assessment, Coombs distinguishes three clusters of crises:

  1. Victim: Where the organization is a victim of the crisis (e.g. natural disasters, rumours) – minor reputational threat;
  2. Accident: Where the organizational actions leading to the crisis were unintentional(e.g. equipment or product failure, accusations from external stakeholders) – medium reputational threat;
  3. Intentional: Where the organization knowingly took inappropriate risk – major reputational threat.

Additionally, reputational threat is potentially ‘intensified’ (positively or negatively) by crisis history (were there similar crises in the past with this organization?) and prior relational reputation (how is the organization known for treating stakeholders?).

How to use the model
Once the levels of crisis responsibility and reputational threat have been determined,
SCCT builds on communications professor William L. Benoit’s image restoration model by identifying a limited set of primary crisis response strategies:

  1. Denial (attacking the accuser, denial of the story, scapegoating);
  2. Diminishment (offering excuses, justification of what happened);
  3. Rebuilding (compensation of victims, offering apologies, taking full responsibility).

A secondary, supporting crisis response strategy is bolstering, or reinforcing: reminding stakeholders about the good works of the organization and/or how the organization is a victim as well. Neither Benoit nor Coombs considers silence as a strategy, with Coombs stating that ‘Silence is too passive and allows others to control the crisis’ (Coombs and Holladay, 2012). Indeed, much has changed since 1882, when entrepreneur William Vanderbilt could say ‘The public be damned’.

For monitoring purposes, professor Marita Vos developed a crisis communications scorecard to measure clarity, environmental fit, consistency, responsiveness, effectiveness and efficiency of concern communications, marketing communications, internal communication and the organization of communications. Detailed information is available at www.crisiscommunication.fi.

Results
SCCT identifies as crisis outcomes: organizational reputation, effect (emotions of stakeholders, like sympathy or anger) and behavioural intentions (of stakeholders, like purchase intention or word of mouth). Coombs points out that the effectiveness of the crisis response is also influenced by how the organization managed the pre-crisis phase (prevention and preparation) and the post-crisis phase, (learning from mistakes and successes). Whereas the dynamics of social media limit the time for thinking a crisis response through, time can be won in the preparation phase, as social media offers various opportunities to see a crisis coming.

Comments
Similar to corporate apologia theory and image repair theory, SCCT has a strong focus on corporate reputation repair. In developing a crisis response strategy, there are factors not included in SCCT that might also be considered to determine reputational threat. Potentially influential factors might be the role of culture, the role of visual elements in crisis media coverage, or other factors that are recognized by attribution theory, contingency theory (built on the idea that there is no best way to organize a corporation) and complexity theory (dealing with the ‘black swans’, or uncertainty about the unknown unknowns).

As SCCT is a model for understanding crisis communication on a strategic level, it does not provide detailed guidelines on the tactics of crisis communication. As a general guideline, the advice of PR consultant and author Leonard Saffir applies: ‘Be quick with the facts, slow with the blame.’

Literature
Benoit, W.L. (1997) ‘Image Restoration Discourse and Crisis Communication’, Public Relations Review, 23:2, pp. 177–186.
Coombs, W.T., Holladay, S.J. (2012) The Handbook of Crisis Communication, Oxford, Wiley-Blackwell.
White, C.M. (2012) Social Media, Crisis Communication, and Emergency Management: Leveraging Web 2.0 Technologies, Boca Raton, Taylor & Francis.

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New release: Football Business

27 August 2014 by in Book publishing, Business and finance, Football Business

Players’ whopping wages, ludicrous transfer fees, and escalating ticket prices frequently hit the headlines when it comes to football. But there is far more to football’s finances than this, claims Tsjalle van der Burg, author of Football business.

Football business will be available to buy from 1st September 2014, transfer deadline day. The book shows how the economics of European football have developed to the point where the structure of the business of football is now at odds with the game itself and the fans it was originally created for.

An economist at the University of Twente in the Netherlands and a football enthusiast, Van der Burg exposes the hidden face of football’s finances and shows how the economics of this beautiful game have gradually taken it out of the reach of enthusiasts and into the hands of entrepreneurs. In Football business, he unveils the key forces at play in today’s most followed sport and points an accusatory finger at commercialism and greed, which have come to shape the current nature of the game.

In a series of engaging and topical stories, van der Burg rattles the cage of football and gradually exposes the inequalities of the current system; he brings to light the weaknesses of UEFA’s Financial Fair Play (FFP) rules, takes a stand against pay TV and reveals how, in a global market for sponsorship and television rights, the competition amongst clubs is fiercer off the pitch than on it. His criticism of players’ inflated salaries is underpinned by solid economic principles, which expose the gap between their financial worth and their astronomical wages. At the centre of the book is Van der Burg’s desire for a redemption of the game; his call for a lowering of footballers’ pay and a redistribution of the surplus in the community is as much animated by philanthropy as by his passion for football.

Van der Burg’s plea for a prompt rectification of European football’s off the pitch rules takes centre stage in the latter part of the book. A ‘robust system of financial control’ to bring football back to its most honourable days must be introduced, argues van der Burg. While ‘many things are wrong with the EU’ he adds, ‘it’s the only body with the power to bring football back to the people.’ But whether the EU will be willing to revive football’s honour is still uncertain. ‘Will the fans walk alone’, asks the author? The answer, he suggests, depends very much on whether those in control are prepared to depart from their current path.

Dr Tsjalle van der Burg teaches economics at the University of Twente in the Netherlands. He has a special interest in popularizing economics and has published on economic subjects in national newspapers and spoken on radio and television. Van der Burg is a lifetime supporter of Feyenoord.

Football business