Mastering the Game: Lessons in Leadership from Rugby to the Boardroom

January 29, 2024

Mastering the Game: Lessons in Leadership from Rugby to the Boardroom explores the parallels between high-performance rugby and successful business leadership. Drawing from personal experiences on the pitch, Darren Cassidy delves into shared purpose, adaptability, a growth mindset, and motivating teams as key principles that drive success in both arenas.

Watching the recent Rugby World Cup, I found myself absorbed in the leadership, decision-making, skill, strategy and team camaraderie that underscore the game. Sport has played a significant role in my life, especially driving and delivering strong team performance, shaping my approach across various aspects of my career. Drawing first-hand from my experience on the pitch, I see a striking resemblance between high-performance rugby and successful business stewardship. While the spotlight often shines on individual brilliance, the collective effort, underpinned by a shared purpose, adaptability, a growth mindset and motivation, powers success on the field and in the boardroom.

The game of rugby is rife with business leadership lessons, ranging from preparation and planning, team alignment, visibility, and communication to how we face success and failure, which cultivate shared accountability and commitment among team members. Both adrenaline and nerves peak in the pre-game environment, shaping individual and team experiences. In turn, the post-game environment is charged with emotions from joy to frustration, reflecting encounters in the business world, offering learning opportunities from every win or loss, and aiding the ability to refocus and adapt to the next challenge.

On the pitch, when players are in the ‘‘zone’’, often described as a ‘‘flow’’ state, as defined by Csikszentmihalyi, they are fully immersed, with a singular focus on the game’s demands rather than the scoreboard. Team players know that standing on the sidelines and staring at the results board does not change the score; they are deep in the game. In business, a key observation is that being preoccupied with outcomes, for example, the profit and loss (P&L) and sales metrics, or saying results are needed won’t miraculously transform numbers. Strategic insight, action, and execution, drive and deliver results. Preparation and planning are a given. However, leading with purpose, exhibiting adaptability, and fostering a growth mindset and motivation are critical to team success.

Power of Shared Purpose and Belief System Can Propel Team towards Collective Success

Preparation, planning, and strategy in rugby are analogous to decision-making and planning in business. Often, coaches are heard saying, ‘‘It’s a must-win game’’, and business leaders say, ‘‘It’s a must-win deal’’. Yet, without a clear ‘‘how’’, such directives can leave players and employees puzzled. This outcome-focused approach requires an underpinning strategy that clarifies the process. It’s the ‘‘how‘’ – the game plan – that transforms a daunting challenge into a navigable path in the right direction. Moreover, whether on the pitch or in a boardroom, clarity of purpose guides our approach to action. This clarity aligns teams, enabling them to move as one towards their common goal.

The game of rugby is rife with business leadership lessons, ranging from preparation and planning, team alignment, visibility, and communication to how we face success and failure, which cultivate shared accountability and commitment among team members.

For leaders, understanding and communicating their purpose is not about providing direction; it’s about inspiring confidence and fostering an environment where each decision, each play, contributes to a larger vision. As a leader, purpose is not what you do; it’s ‘‘how’’ you do your job and ‘‘why’’ and the inherent strengths you bring to a business or sports team. In various realms, I recognise that my purpose is to empower and guide people to excel and reach their fullest potential. In pressurised environments, well-articulated purpose cuts through the noise, focusing hearts, minds and efforts. It’s the light that guides teams through ambiguity.

I joined the Henley rugby team after the tenure of Clive Woodward. As a team, we held regular sessions on building our game plans and defining our purpose. We had game plans dependent on certain conditions, for example, our opponents or the weather. Our purpose was to play entertaining rugby, and we had specific ideals to guide us. It was a way of bringing a team together. A strength in bonding teams around a belief system drives and energises a team, whether in rugby or business.

At Xerox, in a similar vein, our approach to leadership and strategy is based on collaboration and clarity of focus. Every year, I bring my team together to build our team strategy. We believe in the power of inclusivity and open discussion. In these sessions, we delve into our purpose and dissect key performance indicators (KPIs) and focus areas. The goal is to create a blueprint to guide us through the challenges and opportunities of the year ahead. It’s a one-page plan that encapsulates our strategy; it’s simple but effective because it’s easy to communicate and rally a business around.

In recent years, particularly in the wake of the pandemic, wellness emerged as a recurring theme brought up by our management team in our sessions. As a result, wellness now forms a key pillar of our business. We recognise that the well-being of employees is a fundamental cornerstone of success. By elevating wellness to a key pillar, we’ve made a clear statement about our commitment to the health of our employees.

Adaptability on and off the Pitch

Powerful teams adapt to the situation in front of them. Most of the situations we face in business or rugby are foreseeable. Great rugby teams and companies have contingency plans for various predictable scenarios. Sports teams and companies must have their antennae finely tuned to signals of change from the external environment, decode them, and quickly adapt or refine their play or business strategy.

For example, in rugby, a team may not play well, not get a quick ball, or the referee’s decision goes against them, and it’s raining and slowing them down. These factors could stop a team from playing at a desired tempo, but they’re foreseeable events. If you’ve planned and trained as a team and tuned into these signals, it makes sense to revert to an adapted game plan. I have played in teams that have changed tactics to turn a slow ball into a quick ball, playing tighter to the forwards to gain control before you try and expand in the wider channels again – being deliberate in making changes in the heat of a game and as a collective is a decisive move.

Agile thinking is a competitive advantage in sports and business amidst dynamic environments. However, teams require rules to facilitate interaction, help individuals make trade-offs and set boundaries for decision-making. Preparing others, understanding the game (or the market), and pivoting strategy with confidence at a moment’s notice is imperative.

Exceptional leaders and teams harness a growth mindset on and off the pitch. They quickly shift their attention to what can be controlled and changed to improve and resolve a situation.

In the business world, adaptability comes to the forefront when game-changing opportunities emerge. We recently encountered such an opportunity – a deal with the potential to reshape industries and set new benchmarks. We gathered together our pursuit team and selected individuals with unique strengths and expertise. We poured our collective knowledge and creativity into developing a solution that met and exceeded the brief. We were excited, but then reality struck that the solution didn’t meet the budget criteria set for the deal, and it was a moment of pause and reflection. We took this as an opportunity for growth and adaptation. We huddled and re-evaluated our strategy and began the process of refining it. This experience serves as a reminder that success in business and sport is rarely a straight line. Instead, it’s marked by twists and turns that demand flexibility and agile thinking.

Cultivating a Growth Mindset: Approaching Challenges and Controlling Reactions

How we respond to challenges and setbacks can significantly hamper our success. Assigning personal blame, viewing the situation as unfair, or pointing fingers at others can hinder the ability to address and overcome these challenges. In my experience, exceptional leaders and teams harness a growth mindset on and off the pitch. They quickly shift their attention to what can be controlled and changed to improve and resolve a situation.

As defined by Dweck, a growth mindset centres around the belief that we can grow our brain’s capacity for learning and problem-solving. It is considered a developable skill that supports adapting to dynamic environments. Such a mindset empowers individuals to control their responses and approach challenges effectively and proactively, serving them well personally and professionally.

Powerful teams adapt to the situation in front of them.

Today, organisations are constantly transforming, driven by societal and technological shifts. Cultivating a growth mindset is needed to create, lead and support change. For multiple generations, currently in the workplace, a growth mindset was not taught in school. Schools often prioritised and rewarded results over learning and progress, which is required today in many aspects of life and work.

To support teams within my organisation, I have collaborated with Gazing Performance, introducing their Red2Blue model, a mindset technique that empowers and supports developing mindset as a skill. In the Red2Blue model, ‘‘Red head’’ is the feeling of being tight, inhibited and anxious, whereas ‘‘Blue head’’ is calm, clear and accurate. The All Blacks New Zealand team even embraced this practical approach to mindset development in their 2011 and 2015 Rugby World Cup preparations. The link between a growth mindset and the Red2Blue model lies in the latter’s ability to help individuals from a limiting “Red head’’ mindset to an empowering “Blue head’’ mindset aligning with the principles of growth, adaptability and proactive problem-solving. This technique can be instrumental in fostering a growth mindset required to thrive in an ever-changing world.

Motivating Teams in High-Pressure Environments: Recognising Individual Strengths and Fostering Collective Commitment

As a captain on the pitch and a business leader, my core strength is motivating teams around a shared purpose in dynamic environments. Recognising the inherent diversity in individuals – their internal drivers in terms of goal-directed thoughts and behaviours – and the influence of external factors such as environment and team dynamics on their well-being, is critical. Understanding internal motivations (intrinsic factors such as personal passion and values) and external motivations (extrinsic factors such as recognition or rewards) can enhance overall team performance and help uncover that elusive extra percentage of effort that makes a substantial difference and changes the game. Understanding your team is non-negotiable. As a leader, you’re rolling up your sleeves and on the pitch with them. Leading from the front gives a crucial viewpoint.

In rugby and business, the parallels are undeniable, offering a trove of insights and strategies for achieving peak performance. The common thread across both domains is the power of shared purpose.

However, as a mentor wisely counselled me, this position requires balance. The ability to step back and zoom out is critical to ensuring sustainable performance for you and your team and checking that efforts are focused on vital tasks. This skill contributes to achieving long-term goals and overcoming challenges. We had a complex contract riddled with technical challenges and involved deploying devices in a highly secure environment. Gathering my team, I knew this endeavour was special. As their leader, I wanted them to understand that I saw them as individuals. I addressed the team, acknowledging the complexity of the task. At that moment, I emphasised our collective importance and each team member’s unique contributions. It’s not just a project but a testament to our collaborative capabilities. Recognising their individuality and valuing their expertise created a sense of unity and purpose.

In rugby and business, the parallels are undeniable, offering a trove of insights and strategies for achieving peak performance. The common thread across both domains is the power of shared purpose.

A rugby team rallies around a common goal, and businesses thrive when their teams are united by clarity and purpose. Purpose ignites confidence and fosters an environment where every decision contributes to a larger vision. Success hinges on seeing change on the horizon and pivoting and refining strategies as needed. Teams and companies that prepare for the unexpected can move swiftly in dynamic environments.

Cultivating a growth mindset empowers individuals and organisations to face challenges head-on and drive continuous improvement. Such a mindset is indispensable in business transformation and dynamic environments. Motivating teams is an art that requires understanding the motivations of individuals and the influence of external factors. Purpose, adaptability, mindset, and motivation propel teams and organisations in sports and business. As leaders, it’s our responsibility to embrace these principles and inspire our teams to reach their potential and guide them through the ever-changing landscape.

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About the Author

Darren Cassidy is the managing director for Xerox UK & Ireland and senior vice president for the Global Document Services business across Europe, the Middle East & Africa (EMEA). With 31 years of experience at Xerox, he has held various roles across Xerox Europe and Global, including direct sales management and leadership in channels, learning, and development. Darren’s expertise lies in delivering document services and digital transformation solutions across EMEA. He is a sports enthusiast, having played national league rugby and semi-professional football, and in recent years, he has embraced Transcendental Meditation (TM) as a dedicated practitioner.

Why the Ethical Use of AI Matters for Your Career

January 29, 2024

By Jack McGuire, David De Cremer, Leander De Schutter, and Yorck Hesselbarth

In the contemporary digital era, innovations such as artificial intelligence (AI) are profoundly transforming the business landscape (De Cremer, 2020). The buzz surrounding ChatGPT, coupled with recent assertions about the sentience of Google’s LaMDA, a large language model, underscore the prominence of chatbot technology in these advancements (Adamopoulou & Moussiades, 2020; Ryu & Lee, 2018; Tiku, 2022). Customer-oriented chatbots, an emergent application of this tech, offer unparalleled efficiency and cost-effectiveness, operating ceaselessly and responding to client inquiries in real time (Salesforce, Research, 2019). Yet, amidst these advantages lies an ethical conundrum. Customers cherish genuine human interaction and can become quickly disillusioned when they realise they’re communicating with a bot, not a person (Ciechanowski, Przegalinska, Magnuski & Gloor, 2019). Balancing this desire for authenticity with the allure of operational efficiency poses a challenge, making it tempting for businesses to deceive customers by blurring the lines between human and machine.

Specifically, organisations nowadays are confronted with a reality where chatbots demonstrate remarkable human-like qualities (Collins & Ghahramani, 2021; Leviathan & Matias, 2018). This reality makes the choice to cut costs by adopting human-like chatbots a rational one. However, this choice is not so straightforward for organisations to make. After all, customers prefer the real thing (i.e., interactions with a human) over the artificial one, and therefore making the rational choice requires organisations to adopt a strategy of deceiving their customers by not disclosing to them that chatbots are used.

However, what are the risks when firms use chatbots without disclosure? What happens to the reputation of organisations engaging in these deceptive acts when customers find out what is really happening? And, even more important, what happens to the employees working for those organisations? When deception is found out, organisations are likely to suffer reputational damage, but will it also tarnish the careers of their employees? Several high-profile tech companies have faced backlash over the unethical use of emerging technologies.

Consider the fallout from the Theranos fraud and misconduct scandal. While the company suffered legal and reputational damage, employees faced a backlash, too. Several of them reported difficulties in job transitions, with potential employers associating them with the scandal (Lapowsky, 2021). As companies carry responsibility for their employees, it is imperative from an accountability point of view that they are aware of any potential effects on the careers of their employees before succumbing to the allure of deploying chatbots under a veil of deception. To test whether employees indeed suffer in their career prospects when the organisation they work for engages in deceptive chatbot practices, we conducted several experimental and field studies (McGuire, De Cremer, De Schutter, Hesselbarth, Mai & Van Hel, 2023).

The Ripple Effect on Careers

First of all, our research unsurprisingly finds that organisations employing undisclosed chatbots are perceived as less ethical by customers when found out. Obviously, if you work for an organisation that is seen as unethical in its use of emerging technologies, it will affect your work identity. If this is the case, how will it affect the judgements and subsequent actions of these employees? The Uber scandal involving the suppression of sexual harassment allegations presents some useful insights regarding how to respond to that question. Employees at Uber, even those uninvolved, experienced that the company’s ethical breaches overshadowed their individual reputations and motivated many of them to resign (Kosoff, 2017).

Organisations that deceive their customers by pretending to have humans handle customer enquiries are judged to be unethical by both customers and the employees working for those organisations.

To validate this idea, we ran a series of experimental studies where employees in a simulated company were asked to facilitate deceptive chatbot use. Putting employees in this situation made them more likely to perceive their organisation as cultivating a culture of making unethical requests to their workforce. In turn, because of these perceptions, we found that those employees wanted to quit their job more.

So, organisations that deceive their customers by pretending to have humans handle customer enquiries are judged to be unethical by both customers and the employees working for those organisations. As a result, customers will show no loyalty to those organisations, and employees want to leave them. But where can those employees go? Are they contaminated for the job market? With today’s rapid transmission of information online, a company’s unethical practices can become widely known, and thus impact employees’ professional trajectories.

To study this phenomenon, we conducted two more studies, where we assessed how those employees are seen by recruiters. Our results showed that employees that had worked for an organisation known to use chatbots deceptively were perceived by recruiters to be less trustworthy, were less likely to be offered a job, and were given a lower salary when offered one. The deceptive use of chatbots therefore has widespread repercussions. It harms not only the company, but also the people who work there.

The Responsibility of Tech Professionals: A Call to Action

The case is clear. Tech professionals must champion ethical AI use. The broader societal implications of our creations cannot be ignored. Advocating for transparency and ethical guidelines protects both the company’s reputation and your own professional standing. The findings from our research offer two actionable takeaways:

The role of leaders. Leaders must recognise the lasting harm of deceptive practices. Ethical technology use can bolster company reputation, morale, and customer trust.
The role of employees. Employees should be proactive, voice concerns about unethical technology use, and leave companies using deceptive practices before those deceptions are revealed. Communicating these concerns anonymously, in private with your manager, or publicly in team meetings and town hall sessions are all useful and should be considered.

In conclusion, as AI’s role in business grows, its ethical use is critical. It’s not merely about company profits; it’s about the careers and reputations of those who make up the organisation. Prioritising ethical AI practices isn’t just a business imperative; it’s a career necessity.

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About the Authors

Jack McGuire is Jack McGuire is a Postdoctoral Research Associate at the D’Amore-McKim School of Business at Northeastern University (Boston). He received his PhD in Management & Organization from the National University of Singapore Business School and his MSc from University College London. Prior to this, he was an Experimental Lab Manager and Research Assistant at the University of Cambridge, Judge Business School. Jack’s research examines the psychological consequences of artificial intelligence and its increasing application in the workplace. This work has been published in Journal of Business Ethics, Computers in Human Behavior, International Journal of Human–Computer Interaction, and Harvard Business Review, among others.

David De Cremer is currently the Dunton Family Dean of D’Amore-McKim School of Business and professor of management and technology at Northeastern University (Boston), and an honorary fellow at Cambridge Judge Business School and St. Edmunds College, Cambridge University. Before moving to Boston, he was a Provost chair and professor in management at National University of Singapore and the KPMG endowed professor in management studies at Cambridge University. He is the founder and director of the Center on AI Technology for Humankind (AiTH) in Singapore, which was hailed by The Higher Education Times as an example of interdisciplinary approaches to AI challenges in society. He is one of the most prolific behavioral scientists of his generation, and a recognized global thought leader by Thinkers50. He is a best-selling author, including “Leadership by algorithm: Who leads and who follows in the AI era?”, and his newest book “The AI-savvy leader: 9 ways to take back control and make AI work”, which will be published by Harvard Business Review Press in 2024.

Leander De Schutter is assistant professor at the Vrije Universiteit Amsterdam, the Netherlands. He is interested in leadership and decision-making in the workplace.

Yorck Hesselbarth is building foundational models with European values at Nyonic AI, contributing to digital sovereignty on the continent. Previously, he conducted research in the field of human-computer interaction and led several cutting-edge AI projects for the German Armed Forces.

References

Adamopoulou, E. & Moussiades, L. (2020, June). “An overview of chatbot technology”. In IFIP International Conference on Artificial Intelligence Applications and Innovations (pp. 373-83). Springer, Cham.
Bogost, I. (2022). “Google’s ‘Sentient’ Chatbot Is Our Self-Deceiving Future”. The Atlantic. Retrieved from: https://www.theatlantic.com/technology/archive/2022/06/google-engineer-sentient-ai-chatbot/661273/
Collins, E. & Ghahramani, Z. (2021, May 18). “LaMDA: our breakthrough conversation technology”. Google Blog. Retrieved from: https://blog.google/technology/ai/lamda/
De Cremer, D. (2020). Leadership by Algorithm: Who leads and who follows in the AI era. Harriman House.
Kosoff, M. (2017, March 20). “Uber’s President Resigns as Employees Head for the Exits”. Vanity Fair. Retrieved from: https://www.vanityfair.com/news/2017/03/ubers-president-resigns-as-employees-head-for-the-exits
Lapowsky, I. (2021, August 31). “What became of Theranos employees?”. Protocol. Retrieved from: https://www.protocol.com/newsletters/sourcecode/theranos-on-trial
Leviathan, Y. & Matias, Y. (2018, May 8). “Google Duplex: an AI system for accomplishing real-world tasks over the phone”. Retrieved from: https://ai.googleblog.com/2018/05/duplex-ai-system-for-natural-conversation.html
McGuire, J., De Cremer, D., De Schutter, L., Y. Hesselbarth, Mai, K.E. & Van Hiel, A. (2023). “The reputational and ethical consequences of deceptive chatbot use”. Scientific Reports, 13, 16246.
Ryu, H. S. & Lee, J. N. (2018). “Understanding the role of technology in service innovation: Comparison of three theoretical perspectives”. Information & Management, 55(3), 294-307.
Tiku, N. (2022). “The Google engineer who thinks the company’s AI has come to life”. The Washington Post. Retrieved from: https://www.washingtonpost.com/technology/2022/06/11/google-ai-lamda-blake-lemoine/

How To Incorporate Artificial Intelligence Into Learning And Development Strategy?

January 28, 2024

By Mostafa Sayyadi

Only identifying problems for senior managers is not enough today. They need to be able to develop and implement an AI-powered learning and development strategy. Artificial Intelligence (AI) has placed senior managers in what is known as a dual role. In this article, I examine the challenges of the development and implementation of an AI-powered learning and development strategy and provide an alternative way for companies to re-emerge with sustenance.

Introduction

As organizations enter the new age of artificial intelligence there are a plethora of unique opportunities. One opportunity is to create an AI-powered learning and development strategy. Developing a technological infrastructure is one important component but there is another that will likely make or break the traditional organization. Success in the era of artificial intelligence does not only require money and investment in technology infrastructure, but it also requires a change in the way leaders think about their learning and development strategy. In this article, I call this new approach the AI-powered learning and development strategy and provide corporate leaders with the best practices for the development and implementation of this effective strategy.

The best practices for the development and implementation of an AI-powered learning and development strategy depend on how senior managers can create a rapid technology change program. There needs to be a strong emphasis on maximizing the performance of the artificial intelligence development and implementing a human resources development project to begin developing and implementing a new form of learning and development strategy, what I call an AI-powered learning and development strategy.

AI-Powered Learning and Development Strategy

With the introduction of AI to a company, the learning and development strategy will change, and a new learning and development strategy cultivation and implementation process will be redefined based on data analysis and digital applications.^{[1] [2] [3] [4]} The first step is to assess human and technological infrastructure capabilities for AI, avoiding pitfalls in data analysis and further elaboration. Secondly, implementing an effective knowledge management system is one of the most significant technological and human infrastructures companies need before developing AI. [5] [6] Insights related to data analysis are usually available at operational levels, but the lack of an effective knowledge management system causes these insights to not pass through the bottlenecks of communication channels and are not available to upper levels. Here, developing chatbots and using other AI tools can lead to developing a data-oriented approach in companies and eventually strengthen the data analysis side in AI-powered learning and development strategy.

Another critical pillar of AI-powered learning and development strategy is the digital core knowledge, which refers to the software on which algorithms derived from data analysis are applied. ^{[7] [8]} This step creates a more scientific baseline for decision-making, and algorithms for hybrid automated processes are presented. It is advisable to avoid software and technology choices that can act on the current CEO’s perception and research of rapid transformations and adoptions. The accelerated decision about technologies could create errors in the data to be utilized in learning and development strategy and delays in effective AI implementation. AI requires processes redesigned to get advantages of automation along critical processes using chatbots.^{[9] [10]} This part of AI implementation is the opportunity to make the participation of internal resources effective, especially those at the bottom line, to work on RPA coding and algorithmics. This can happen if a hybrid change process is allowed, which, under an effective and active sponsorship from the top, can remove the fear of technology from internal resources. The CEO’s role is to communicate technology’s scope and benefits with employees. As said earlier, a bottom-up approach with employees’ participation and decision-making power can lead to minor resistance and create a culture that, in addition to considering experimentation, can better align people and technology, leading to the successful implementation of a learning and development strategy.

Unlearning and Learning

The unlearning and training activities are a great way to learn through experience, and we experienced that “action learning” is the best way. Removing or, better, identifying what is not working anymore, with an effective reality check, allows new learning with experimentation.

Action Learning “learning by doing” involves actively engaging with real-world challenges and reflecting upon them to gain new knowledge and insights. ^{[11] [12]} When combined, people can effectively draw from experience to address complex problems and reflect if they are applicable. ^{[13] [14] [15]} They benefit from supportive peers who offer new perspectives to explore emerging issues through novel inquiries and probes.

I present a view of the approaches with and without AI and Chatbots:

AI and Chatbots:

AI-powered Decision Support System (DSS) effectively supports unlearning outside real-life decision-making scenarios. We can design specifically to learn how to provide a safe space for employees to unlearn old habits and learn new ones.

Unlearning Process (With AI and Chatbots). The same approach is used with DSS, only different in the use of technology.

Without AI and Chatbots:

Scenario Planning and Future-back Thinking. It involves envisioning possible futures and working backwards to let trainees use their skills to identify the skills, knowledge, and behaviors needed in those scenarios.

Negative Learning. It is a powerful tool to challenge pre-existing beliefs and assumptions, facilitating unlearning and opening the door to new learning. This is particularly effective in extreme cases where existing behaviors or mindsets may harm existing or future leaders, particularly in negative situations.

In Conclusion

AI will transform and enhance decision-making and organizational processes. These transformations will bring extensive benefits to companies. Companies that use this AI have a higher competitive advantage when compared to companies that only focus on one of the two aspects of machines and humans. The change in the approach of CEOs as well as structural and cultural changes will become a basis for developing an effective implementation learning and development strategy to better respond to new learning needs. This AI-powered learning and development strategy, relying on data analysis and AI and digital technology, has a high potential to respond effectively to the emerging learning needs of today’s evolving business environment.

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About the Author

Mostafa Sayyadi works with senior business leaders to effectively develop innovation in companies and helps companies—from start-ups to the Fortune 100—succeed by improving the effectiveness of their leaders.

References

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Niemi, H., Pea, R.D., Lu, Y. (2023). Introduction to AI in Learning: Designing the Future. In: Niemi, H., Pea, R.D., Lu, Y. (eds) AI in Learning: Designing the Future. Springer, Cham. https://doi.org/10.1007/978-3-031-09687-7_1
Mirbabaie, M., Brünker, F., Möllmann Frick, N.R.J. et al. The rise of artificial intelligence – understanding the AI identity threat at the workplace. Electron Markets 32, 73–99 (2022). https://doi.org/10.1007/s12525-021-00496-x
Enholm, I.M., Papagiannidis, E., Mikalef, P. et al. Artificial Intelligence and Business Value: a Literature Review. Inf Syst Front 24, 1709–1734 (2022). https://doi.org/10.1007/s10796-021-10186-w
Huang, L., Peissl, W. (2023). Artificial Intelligence—A New Knowledge and Decision-Making Paradigm?. In: Hennen, L., Hahn, J., Ladikas, M., Lindner, R., Peissl, W., van Est, R. (eds) Technology Assessment in a Globalized World. Springer, Cham. https://doi.org/10.1007/978-3-031-10617-0_9
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Develop Social Capital to Effectively Enter the Age of Corporate Social Justice

January 28, 2024

By Mostafa Sayyadi and Michael J. Provitera

A few months ago, alarming news of Russia’s invasion of Ukraine spread through official news agencies. Many people across the globe were watching this great crisis with concern for their future. This crisis may be a terrible spark for much bigger crises such as hunger and war over available resources. The dread of an imminent nuclear war may satisfy a small population. The last resort is unwelcomed by any means. Without social justice, these hungry and frustrated people may never be able to cope. They do not have an airplane to board, nor hope to even hang on to its wheels. An example of what happened to desperate Afghans fleeing the situation is a statement that appears in the minds of many. Without social justice, perhaps the world is getting closer to realizing this dream.

At the organizational level, how important is social capital to social justice? Social justice is the apropos word today with the way the world is attempting to take care of the poor and keep people safe, happy, and secure.^[1]^[2]^[3] Agility is a key component of business success in today’s hypercompetitive world. ^[4]^[5]^[6] To achieve a high level of agility, organizations need to create a high level of social capital to support social justice. Our article emphasizes the address of this issue to show how organizations can achieve a new order that is necessary for innovation and survival. We need a new form of social capital-based organizational structure that supports social justice.

Organizations today must strive to be agile. ^{[7] [8]}^[9] The sad reality is that as organizations grow in their business environment, they move away from helping the society, because their main incentive is, in general, to prosper, and, in other cases, they place their focus on survival. Survival sometimes brings inertia and less agility. Innovative and creative ideas in this bureaucratic environment are quickly suppressed and efforts of the organization are focused only on achieving a high level of efficiency. A handful of companies like Apple are still focused on the original idea of helping society through technological breakthroughs. Social capital manifests itself in the form of trust, interaction, and the sharing of ideas and concerns of not only the people in the organization but also the community at large. ^[10]^{[11] [12]}^[13] Social capital can play a very important role in achieving agility and reducing the gap between external changes and the proper response to these changes. Building a social capital-based organizational structure that strengthens trust and interaction between organizational members should become the task of innovative and transformational leaders in today’s business environment.

To support efforts leading to social justice, social capital-based organizational structures factor into this complex equation by designing the power of trust and interaction between human resources and society. This type of organizational design increases the exchange of ideas among employees and leads to the growth of knowledge flow and causes the realization of the learning organization. Some organizations must redesign the organizational processes and events to maximize the interaction of human resources from all parts of the organization to achieve a systemic approach among them to volunteer, give, and offer support to the communities that they serve. The organization becomes more compatible with its business environment, through more effective, timelier, and more innovative responses to the external changes in society.

Redesigning organizational processes and events to further align volunteer and donation ideas, other resources, and key individuals to lead the cause to meet the needs of social justice, the transformation of human capital into social capital is necessary. Through the more effective sharing and application of organizational knowledge, social capital can be enhanced and utilized today more than ever. Human capital is a vital and necessary factor in achieving agility and reducing the gap between changes and the response time to them, it is social capital that uses this human capital and ultimately leads to agility. The analogy between human capital and social capital is what we call power and politics in organizational behavior which is an interesting perspective of management. Power is the same as human capital and politics to use the right sources of power to enhance social capital coupled with social justice. Referent power is the true power of reaching the masses and potentially helping solve some of the problems of social justice.

In closing, while many organizations do not suffer from a lack of ideas (human capital), they do not have effective mechanisms for sharing these ideas and using them (social capital). Most importantly, without an adequate amount of human and social capital, social justice is hard to manifest, and the society goes unnoticed and is left to fend for itself. Thus, the social capital-based organizational structure is the missing link for realizing the potential of improving social justice and turning human capital into social capital.

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About the Authors

Michael J. Provitera is a senior faculty professor of Management and Leadership, in the Andreas School of Business at Barry University, Miami, Florida, USA . He is an author of Level Up Leadership: Engaging Leaders for Success, published by Business Expert Press.

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Serrat, O. (2017). Harnessing Creativity and Innovation in the Workplace. In: Knowledge Solutions. Springer, Singapore. https://doi.org/10.1007/978-981-10-0983-9_102
Bonanno, G., Ferrando, A. & Rossi, S.P.S. Do innovation and financial constraints affect the profit efficiency of European enterprises?. Eurasian Bus Rev 13, 57–86 (2023). https://doi.org/10.1007/s40821-022-00226-z
Simons, T., Gupta, A. & Buchanan, M. Innovation in R&D: Using design thinking to develop new models of inventiveness, productivity and collaboration. J Commer Biotechnol 17, 301–307 (2011). https://doi.org/10.1057/jcb.2011.25
Durst, S., Edvardsson, I.R. (2013). Knowledge Creation and Entrepreneurship. In: Carayannis, E.G. (eds) Encyclopedia of Creativity, Invention, Innovation and Entrepreneurship. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-3858-8_490
Kim, K.H., Pierce, R.A. (2013). Adaptive Creativity and Innovative Creativity. In: Carayannis, E.G. (eds) Encyclopedia of Creativity, Invention, Innovation and Entrepreneurship. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-3858-8_21
Nakao, B.H.T., de Andrade Guerra, J.B.O.S. (2021). Creativity, Innovation, and Sustainable Development. In: Leal Filho, W., Azul, A.M., Brandli, L., Lange Salvia, A., Wall, T. (eds) Decent Work and Economic Growth. Encyclopedia of the UN Sustainable Development Goals. Springer, Cham. https://doi.org/10.1007/978-3-319-95867-5_55
Kabir, M.N. (2019). Innovation. In: Knowledge-Based Social Entrepreneurship. Palgrave Studies in Democracy, Innovation, and Entrepreneurship for Growth. Palgrave Macmillan, New York. https://doi.org/10.1057/978-1-137-34809-8_6
Chemma, N. Disruptive innovation in a dynamic environment: a winning strategy? An illustration through the analysis of the yoghurt industry in Algeria. J Innov Entrep 10, 34 (2021). https://doi.org/10.1186/s13731-021-00150-y
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Chiffi, D., Moroni, S. & Zanetti, L. Types of Technological Innovation in the Face of Uncertainty. Philos. Technol. 35, 94 (2022). https://doi.org/10.1007/s13347-022-00587-3
Jönsson, B. Disruptive innovation and EU health policy. Eur J Health Econ 18, 269–272 (2017). https://doi.org/10.1007/s10198-016-0840-z
Gallanis, T. (2020). An Introduction to Design Thinking and an Application to the Challenges of Frail, Older Adults. In: Celi, L., Majumder, M., Ordóñez, P., Osorio, J., Paik, K., Somai, M. (eds) Leveraging Data Science for Global Health. Springer, Cham. https://doi.org/10.1007/978-3-030-47994-7_2
You, X. Applying design thinking for business model innovation. J Innov Entrep 11, 59 (2022). https://doi.org/10.1186/s13731-022-00251-2
Thienen, J.v., Noweski, C., Meinel, C., Rauth, I. (2011). The Co-evolution of Theory and Practice in Design Thinking – or – “Mind the Oddness Trap!”. In: Meinel, C., Leifer, L., Plattner, H. (eds) Design Thinking. Understanding Innovation. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-13757-0_5

Fan Power: Unlocking Revenue Potential in Professional Sports

January 28, 2024

By Tianyi Zhang

Professional sports teams operate in a highly competitive and performance-demanding industry, where success is measured by both a team’s on-field performance and their off-field financial performance. In recent years, the sports world has increasingly focused on the influence of fan engagement on driving the economic success of sports teams. Highly engaged fans contribute to the exciting atmosphere during games and play a pivotal role in helping teams sustain and generate revenue through various streams.

Analysis of Sports Fan Engagement and Economic Performance

Professional sports teams rely on several revenue streams to support their businesses including media rights, ticket sales, and sponsorships, with the significance of each largely depending on the sport, team size, and market.

However, the recurring theme is that ticket sales and media rights take up the largest percentage of the revenue pie for the vast majority of leagues and sports teams. Since fans are the basis for generating revenue, it is not surprising that traditional forms of revenue generation such as ticket sales and media platforms allow for substantial financial returns, making them a primary focus for teams seeking to maximize their revenue potential.

The Relationship between Fan Engagement and Ticketing Revenue

The relationship between fan engagement and ticketing revenue in sports is influenced by various factors, including price elasticity, ticket demand, and fan spending. In sports, price elasticity determines how sensitive fans are to price changes and how their behavior is affected by those changes.

When the demand is inelastic for tickets such as NBA courtside seats, consumers are less sensitive to changes in price. This means that for inelastic demand, total revenue increases when price is increased and vice versa. When the demand is elastic for tickets, such as nosebleed seats in a low stakes game, consumers are more sensitive to changes in price.

Since the relationship between price elasticity of demand and total revenue is complex and very difficult to determine, the most reliable strategy for sports teams to increase their revenue is to increase fan engagement to reduce price sensitivity, thereby increasing the demand for their tickets, merchandise, or other sources of revenue.

According to the Deloitte, self-described fanatics spend six times more than self-described casual fans annually. Fans who exhibit a deep and passionate commitment to a team or sport are more willing to invest in tickets, merchandise, and other related expenditures like quality breakaway banners. Deloitte also found that season ticket holders spend five times more annually compared to non-season ticket holders. Season ticket holders also demonstrate a higher level of commitment and loyalty to their favorite teams, leading to increased spending on tickets and other associated expenses throughout the season. Moreover, fanatics are about seven times more likely than casual fans to have a high engagement level. Highly engaged fans, even with similar income levels to casual fans, are more likely to spend more and have a greater impact on the revenue streams of sports organizations.

Fan Engagement in Action: WNBA “IsoFan”

“IsoFan” is a unique challenge faced by the Women’s National Basketball Association (WNBA). “IsoFans” are fans who attend games alone and do not have anyone to share their fandom with. A study conducted during the 2019 season surveyed approximately 700 WNBA fans, revealing that up to 28% of respondents identified as IsoFans, meaning that they lacked connections to other fans of the league.

However, the study challenges the assumption that fandom is social and highlights the significance of creating positive experiences for IsoFans. The research suggests that normal fans are more likely to have a higher level of identification with their favorite team, making them more likely to become fanatics.

Currently, WNBA teams are looking to cater towards IsoFans to improve their engagement, elevate their fan experience, and reach the objective of increasing total revenue. Methods to accomplish this include identifying IsoFans at the time of ticket purchase or through fan surveys and creating targeted experiences for them. For example, virtual platforms such as social media spaces can be used to connect geographically dispersed IsoFans.

Value of Media Rights and Impact on Sports Teams

Media rights play a pivotal role in the economic performance of teams and represent a significant portion of their revenue. These rights include broadcasting, streaming, and distribution agreements, which allow teams to showcase their games and events to a wider audience.

The value of media rights is typically impacted by the popularity and demand for the particular sport and league, as well as the size of the fan base. Additionally, the team success, level of talent, and likability of a sports team can also contribute to the value of media rights. To increase the value of their media rights, sports teams can employ various strategies, including increasing fan engagement by expanding global reach and therefore viewership.

“Drive to Survive,” a popular Netflix series about Formula 1, has been influential in increasing fan engagement in the league across broadcasting platforms. For example, the debut week of Season 5 attracted nearly 570,000 viewers, a 40% jump from the Season 4 debut. When factoring in viewers catching up on past seasons, the total viewership exceeded 643,000 viewers. The series is credited with boosting live race viewership on ABC and ESPN, leading to increased sponsorship revenue. A poll conducted among U.S. Formula 1 fans revealed that 53% of respondents attributed their viewership of F1 races to the influence of “Drive to Survive”, which is an unbelievably high percentage.

The increase in U.S. fan growth since the debut of the Netflix series indicates a positive trend. Moreover, the addition of new races, such as the Miami and Las Vegas Grand Prix, further enhances the potential for growth in race viewership. Experts anticipate another ratings growth spurt of 15-20% because of the success of “Drive to Survive” and the subsequent increased presence of Formula 1 in the United States.

Success Stories in Maximizing Fan Engagement

1. Ajax Melted Trophy

Football team Ajax melted down their championship trophy into 42,000 stars and distributed a piece to each season ticket holder. Not only did this unique strategy capture fans’ attention, but it also earned prestigious recognition through winning the grand prix and sports category at The Drum Awards in 2021.

Other teams can take inspiration from Ajax’s success and replicate their approach by offering customizable, unique, and sentimental items to their most loyal fans. This establishes a deep connection with the fans, recognizes and rewards their loyalty, and creates emotional ties with the team. Tactics like this make the price elasticity of demand more inelastic, meaning that an increase in price will lead to an increase in revenue.

Lastly, participating in industry awards and recognition can bring visibility and prestige to fan engagement initiatives, as well as drive overall brand awareness among existing and new audiences. By submitting these initiatives for consideration, sports teams can gain positive publicity and enhance their reputation.

2. The Fan Loyalty Rewards Program

One strategy that comes from outside of sports is the Fan Loyalty Rewards Program: a unique fan engagement strategy that aims to incentivize and reward fan’s loyalty with the end goal of generating a significant impact for sports teams.

Much like customers of an airline or restaurant, fans can earn points for various activities such as attending games, purchasing merchandise, engaging with the team’s social media content, participating in fan contests, and referring new fans to join the program. These points could be redeemed for exclusive rewards, including VIP experiences, meet-and-greets with players, merchandise discounts, and priority access to tickets.

While loyalty reward programs are quite widespread, the unique concept of dynamic valuation of points in these programs has rarely been considered. For instance, teams can offer more points to drive fan behavior at unpopular game times, similar to how teams dynamically price their tickets. This can provide meaningful incentives for fans to attend and engage with the team during low-stakes games.

The Fan Loyalty Rewards Program is supported by previous research that demonstrates the positive impact of loyalty programs on fan engagement and revenue generation. It leverages gamification to motivate fans to actively participate and earn points, resulting in heightened fan enthusiasm, word-of-mouth promotion, a sense of exclusivity that drives fan loyalty, and a more inelastic demand curve. Loyalty programs can also tap into the trend of personalized experiences and customized offers by tailoring awards to individual fans, enhancing their satisfaction and emotional connection with the team.

Future of Fan Engagement in Sports

The NHL has implemented an AI platform called Greenfly, which streamlines the process of sharing digital media content across various social media channels. This platform allows teams and players to quickly and easily access and distribute personalized content, such as photos and videos, to engage with fans on social media. With AI algorithms that automatically tag and categorize media assets, teams and players can quickly find and share relevant content, providing fans with more frequent and timely updates.

By using AI-driven data analytics, the NHL can gain insights into fan preferences and behavior, allowing them to tailor content recommendations and engagement initiatives to individual fans’ interests. Fans are now more encouraged to create and share their own content, which can be curated and amplified by the league and teams through the Greenfly platform. The use of tools like AI to increase fan engagement will quickly become widespread, benefitting teams and leagues all around the world.

All the photos in the article are provided by the company(s) mentioned in the article and are used with permission.

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References

Bain. “How Investment Is Changing Sports,” July 22, 2021. https://www.bain.com/insights/how-investment-is-changing-sports/.
Deloitte United States. “A Game Plan for Enhancing Fan Engagement,” n.d. https://www2.deloitte.com/us/en/pages/consumer-business/articles/sports-loyalty-scoreboard.html.
Sports Business Journal. “Solving the Mystery of the WNBA ‘IsoFan,’” July 27, 2023. https://www.sportsbusinessjournal.com/SB-Blogs/OpEds/2023/07/27-isard-katz-melton-agha.aspx.
———. “F1’s ‘Drive to Survive’ Effect: Inside the Show’s Ratings and Its Impact on Race Viewership.” The Athletic, September 5, 2023. https://theathletic.com/4402239/2023/04/13/f1-formula-one-drive-to-survive-ratings/.
———. “5 of the Best Sports Campaigns That Won in 2021, Including Ajax and AB InBev.” The Drum, December 27, 2021. https://www.thedrum.com/news/2021/12/27/5-the-best-sports-campaigns-won-2021-including-ajax-and-ab-inbev.
———. “The NHL Leads with AI to Power Digital Media Access.” Greenfly, November 17, 2023. https://www.greenfly.com/resources-category/customer-showcase/nhl-ai-power-digital-media-access/.

Improve Liquidity Amid Economic Volatility

January 27, 2024

Hard Cash on a Brief case — *Photo by Pixabay on Pexels*

The unprecedented events in the past four years have put a lot of people and entrepreneurs into the gutter. Recession, layoffs, and business shutdowns were challenges the US economy endured in 2020.

The economy easily regained footing as policymakers maintained prudent approaches to the economic slowdown. In 2021, the reopening of businesses and the rebound of the employment rate showed a continued rebound.

But not a year later, economic woes started to seep into every household again. The sharp rise of inflation and interest rates threatened millions of Americans’ finances. In 2023, about 40% of Americans reported being financially stressed due to inflation. This number notably increased from 34% last year despite the sustained inflation deceleration and interest rate hike pause.

As we start 2024, outlooks are more optimistic as inflation approaches the Fed’s target band. Yet, many analysts believe that the recession was delayed, not avoided. With that, individuals must monitor their liquidity as recession fears persist. These are some tips to help prevent financial distress amid macroeconomic volatility.

Keep Track of Your Spending

A survey conducted in late 2023 showed that 73% of Americans could still not keep up with inflation even after having a salary increase. Inflation has always been a double-edged sword that can make or break economic growth. The same applies to every household since inflation requires businesses to raise salaries, so production will remain the same or improve.

However, the general price level increase is often faster than one’s salary. As such, it is in the hands of every employee to ensure they have enough.

One effective way is by checking your monthly cash flow. Keep track of your expenses and compare it to your salary. Does your salary cover all your expenses? How much stays with you after paying your monthly bills, groceries, and rent? Amid economic uncertainties, it is essential to live within your means to avoid getting stuck in debt, especially now that inflation and interest rates are still elevated.

If possible, lessen your discretionary spending. These include your spending on clothes, food deliveries, entertainment, and other non-essential products and services. You can start either by reducing the amount or the frequency. That way, you can gradually see how it affects your finances and self-discipline.

Get Side Hustles

Sure, you have already tried every way to limit your spending or reduce electric and water consumption. Yet, nothing has changed. You still can’t increase your savings. Looking for higher-paying jobs can be a good option.

But you should have a backup plan before submitting your resignation. Even if you landed the most coveted job in town, you may have to wait about a month before starting.

Given this, having side hustles will help you pay your monthly dues while waiting for your first paycheck in your new job. Online jobs are all over the internet as many businesses no longer rely on brick-and-mortar stores.

Having more than one part-time or freelance job can be lucrative today. They promise you multiple and consistent sources of income. You can also work at home all day to avoid transportation and takeout expenses.

Establish an Emergency Fund

At this point, we hope you have landed a decent-paying job or found multiple income streams. That way, you can pay your monthly bills and have enough savings. However, your bank savings may need more should inflation rebound in the subsequent months. It is more difficult during emergencies, accidents, and sickness.

As such, you must establish an emergency fund as early as now. This is a portion of your savings solely intended for emergency spending. Suppose you have an income of $5,000 per month. You spend $3,000 on all your monthly bills, including rent and groceries. You spend $1,000 on entertainment, new clothes, and restaurants. The remaining $1,000 goes to your bank savings.

You can start by getting 30% or $300 of your non-discretionary spending and put it in your emergency fund. If possible, you can make it at least 50%. You will have $3,600 or $6,000 within a year in your emergency fund. That is why you must keep track of your monthly expenses to determine which you can reduce to improve your savings.

Get Insurance

The pandemic has been a game-changer for many. It has shown the importance of financial awareness to stay afloat during a crisis. The skyrocketing hospital bills and property prices have depleted the wealth of many Americans. That is why having insurance can turn a stressful situation into an unexpected blessing.

Having health, life, and even property and casualty insurance may add more protection to your finances. It makes sure your savings and emergency funds are left untouched. It is especially essential during accidents because many life and health insurance policies cover it. Accidental death and accident disability are some benefits a policyholder can get from his insurance.

Aside from that, it can help you cover legal fees should someone file a countercharge against you in court. Insurance is also a staple for many businesses, whether the accusations are true or false. Insurance companies and financial advisors can even help you find lawyers to fight for you in court.

Thankfully, many law firms now utilize SEO for personal injury lawyers, making it easier to help you find reliable and established ones online.

Observe macroeconomic changes

Economic awareness is not exclusive to economists and financial analysts. Everyone can have it by having timely updates.

Watching and reading news on reliable channels and websites can help you understand what’s happening in the economy. Even if you are not well-versed in jargon, you will surely learn about it as you become consistent. Doing so will allow you to prepare for possible recessions and shield your savings.

The US economy is still on its way to recovery, but the potential of another economic slowdown should not be disregarded. One should be more aware of local and global events to better prepare for crises.

That way, you can avoid financial distress and not be pushed to the brink of bankruptcy. Also, you can find ways to capitalize on the situation and increase your portfolio. Additionally, you can stay liquid without exhausting your savings.

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Weaponizing Markets

January 26, 2024

By Dan Steinbock

Western hedge funds, banks and short sellers are targeting China, Hong Kong, and South Korea. As geopolitics is proliferating in Asia, weaponization is spreading to markets.

Hong Kong stocks have been plunging to losses for the fourth straight year. In South Korea, global banks have intentionally and illegally shorted companies.

As Chinese authorities began to consider a package of measures to stabilize the slumping stock market aiming to get some $278 billion through offshore entities, Hang Seng Index recorded biggest one-day gain in more than two months on Wednesday, rebounding from the lowest level since October 2022.

But why are real economies bleeding when they seem to be rebounding? Here’s the simple answer: These seemingly disparate events do have a common denominator. Following the weaponization of trade and technology markets since 2017, markets are being weaponized.

UK, Western European and US short sellers in South Korea

In mid-October 2023, as quarantines were being dismantled and markets opened, South Korea’s stock market watchdog (FSS) said two Hong Kong-based global investment banks, HSBC and Bank BNP Paribas, were engaging in naked short-selling. The shorting amounted to $30 million and $12 million, respectively.

“Naked short selling” of stocks – in which an investor short sells shares without first borrowing them or determining they can be borrowed – is banned in South Korea. So, the FSS fined the global banks the largest-ever penalties for illegal short selling.

In South Korea, the number of identified illegal cases more than doubled in 2022-23. In the past, most shorters have been hedge funds. Now global investment banks were found guilty of intentional illegal short selling. The fines have not halted the shorting.

As the financial regulators tackled the destabilization, participation by global funds in trading in South Korea’s $1.8 trillion stock market declined. By early December, foreign investors accounted for 18% of total market turnover by value, on course for the lowest monthly level of the year.

Yet, in South Korea the destabilization has not undermined the link between the market (KOSPI) and GDP growth. In Hong Kong, it has.

Shorting from Hong Kong to China

In Hong Kong, the Hang Seng Index finished the last trading day in 2023 14% lower than it started the year. Similarly, stocks in mainland China recorded losses, with the CSI 300, an index tracking companies listed in Shanghai and Shenzhen, declining 11%. In both cases, the declines have led to hundreds of billions of dollars flowing out as money managers and pension funds reduced their holdings in Hong Kong; the longstanding gateway for foreign investors wanting to put money into mainland China (Figure 1).

Figure 1: Hong Kong: markets and economy: 1-year perspective

FIG1 HK market — Source: Tradingeconomics, author. Jan. 24, 2024

Here are two examples representing “old” and “new” industries. The BYD became the top-selling battery electric vehicle manufacturer in the world after overtaking Tesla in the fourth quarter of 2023 and Volkswagen, the first time any carmaker outsold the German brand since at least 2008. Yet, BYD stock has been plunging since mid-2023 and remains 30% below its high.

China Railway (CR) is the Chinese passenger and freight railroad giant. As tourism outflows are still struggling around the world, domestic tourism in China has soared. During the impending Chinese New Year, a record high 9 billion trips will likely be made, with the national railway system expected to complete 480 million passenger trips. How are these realities reflected by the CR stock, a major beneficiary? Well, they aren’t. It’s been plunging ever since last May and remains 40% down from its high (Figure 2).

Figure 2: Stocks Under Pressure: 1-year perspective

(a) BYD (b) China Railways

FIG2a-b BYD-China Railways — Source: Tradingeconomics, author, Jan 24, 2024

Short sellers from Chanos to Ackman and Bass

Like South Korea, Hong Kong began to attract short sellers soon as the quarantines ended. These players are exemplified by billionaire players, such as Pershing Square boss Bill Ackman, who recently played a key role in the ousting of Harvard’s first black female president Claudine Gay, had first tried to exploit the Hong Kong dollar a decade ago. He took another tilt in 2022, betting the government would be forced to break its link to the US dollar. Fellow hedge-funder Kylie Bass has made similar pronouncements since at least 2019.

Following the highly controversial short-sellers like Andrew Left and Carson Block, Ackman and Bass have targeted China. Bass bet on banking collapse in China in 2015-19 and plays a role in the ultra-hawkish think-tank Hudson Institute, which promotes regime change in China.

The two were preceded by Jim Chanos, who in 2009 bet against Chinese real estate; right before the Chinese stock boom. A year later, he predicted an impending Chinese economic crash that would resemble “Dubai times 1,000 – or worse.” Despite years of flawed predictions, New York Times portrayed Chanos glowingly as “The Man Who Got China Right” in 2015, which is how he is still portrayed by CNBC and US news media.

Yet, the cold reality is that last fall Chanos shuttered his hedge funds, which fell 4% even as the S&P500 surged 18%.

Shorting in China

Headquartered in the US, UK, Western Europe and Japan, international media has reported China’s ongoing rebound mainly as a “downturn,” “meltdown,” or even “collapse.” In reality, the Chinese recovery began in April-July, slowed in August-October, but has strengthened thereafter. Yet, through this period the Chinese market has declined, even as rebound has broadened (Figure 3).

Figure 3: China: markets and economy: 1-year perspective

FIG3 CH market — Source: Tradingeconomics, author, Jan 24, 2024

Nearly nine-tenths of the foreign money that flowed into China’s stock market in 2023 left prior to the year-end. Since peaking at 33 billion in August, net foreign investment in China-listed shares in 2023 dropped 87%, according to Financial Times calculations based on data from Hong Kong’s Stock Connect trading scheme.

International investors have been persistent net sellers since August, when the missed bond payments by the struggling developer Country Garden revealed the severity of a liquidity crisis in China’s property sector. Yet, not all analysts cited seemed to accept such conclusions. “It’s so counterintuitive – the data is getting better and the general environment should be quite positive for Chinese stocks,” said Alicia García-Herrero, chief Asia-Pacific economist at Natixis. “Frankly there’s no reason for this other than investors basically giving up and saying: ‘We don’t see the upside’.”

But why should investor perception be so badly misaligned with realities and with their stated objectives to make money for their investors?

International negative amplification

China’s property market is ailing. That’s typical of rapid industrialization and the associated overhang. What makes it unique is the country’s huge size. Yet, housing demand will prevail. In China, there are now over 400 million people in the middle-income bracket, but the number is expected to reach 800 million in the next decade. As they leave the countryside to the city, they will need homes.

In the past 2 years, Chinese property sales dropped by 10-15%. In 2024, that figure will shrink to 5%. The good news for China’s property developers is that a bottom is in sight, as S&P Global reported already last October. The bad news is that it will take a while for the sector to normalize.

If China is moving toward a soft rebound, why do international media and observers continue to see the glass half empty?

In part, this reflects the kind of negative amplification mechanisms that in the US media contributed to the severity of the 2008/9 Great Recession, as the Nobel-awarded economist Robert Shiller has demonstrated. In the past decades, these mechanisms have accelerated, due to the rise and spread of online media. Furthermore, the increasing weaponization of (even reputable) international media has dramatically proliferated since 9/11, and today it can be leveraged worldwide.

Short sellers for regime change

Obviously, there are fundamental drivers behind the ailing markets in East Asia as well. Nonetheless, a great number of anomalies – economic vibrancy penalized by markets – suggests that there is more to the story. In 2021, short-sellers still won big in the US and even in 2022 as the broader market declined, tallying $300 billion in mark-to-market profits on average short interest of $973 billion.

However, with the end of the quarantines, short sellers lost $178 billion in 2023. What to do? Well, when things get better in the US, short-sellers have been shorting in Asia; foreign markets, companies and currencies, even engaging in regime change.

Last summer, Hong Kong’s financial chief Paul Chan blamed “misunderstandings caused by Western political prejudices” for the stock market’s poor performance, as geopolitical tensions between Beijing and Washington hit a low point.

Ever since the 2011, the West’s geopolitics is driving economies and markets. Unlike economic performance, its impact is unwarranted, adverse and negative. Financial bubbles burst, but geopolitical ploys devastate.

The original version was published by China-US Focus on Jan. 26, 2024

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About the Author

Dr. Dan Steinbock is the founder of Difference Group and has served at the India, China and America Institute (US), Shanghai Institute for International Studies (China) and the EU Center (Singapore). For more, see http://www.differencegroup.net/

5 Ways Technology Can Help you Deliver Exceptional Customer Support

January 26, 2024

Delivering great customer service is no longer just a nice to have.

Recent research established that businesses that adopt omnichannel strategies achieve 91% greater year-over-year customer retention rates compared to those that don’t.

That’s a staggering statistic and it underscores the power of some of the top features of an omnichannel support software in 2024.

Here’s the thing, customers expect seamless service whether they’re on social media, live chat, or email. A top-notch omnichannel support platform isn’t just nice to have; it’s essential for thriving in a competitive market.

In this article, we take a look into how centralized customer information makes the best customer support software for startups and why smooth integration across channels is non-negotiable.

We’ll dive deep into how smart routing can slash wait times and why analytics are crucial for knowing what your customers really want.

I hope you’ll be able to discover how automation eases volume pressures while mobile optimization keeps you accessible anytime, anywhere.

Let’s get started.

1. Centralized Customer Information

Omnichannel support software shines when it comes to keeping all of your customer data in one place.

Imagine you’re a chef with ingredients scattered across multiple pantries.

It’s inefficient, right?

Now think about having everything within arm’s reach—that’s the power of centralized customer information. By unifying data from various channels, your business can serve up personalized experiences that are consistent regardless of where a customer reaches out.

So a single source of truth for customer info lets agents see every interaction—be it via email, chat, social media or phone calls—in one interface.

This not only makes their work easier but also gives them insight into past conversations and preferences. It helps solve the challenge many small companies face: delivering cohesive service throughout different platforms.

And the best part?

Centralization means faster responses too because there’s no need to switch tools or ask customers to repeat themselves (and we all know how annoying that is). So you get happier customers and more efficient support teams—it’s a win-win situation.

You’ll find that omnichannel solutions like Salesforce Service Cloud offer these capabilities so your team can give top-notch service without missing a beat.

They make sure each question gets its answer swiftly by giving everyone on your team access to what they need when they need it most—and isn’t that just smart business?

2. Intelligent Routing and Distribution

How does intelligent routing work?

Imagine a scenario where every customer question lands in the lap of someone who’s not just ready but excited to answer it.

That’s what intelligent routing does for your business. It cuts through the noise, making sure customers get their answers from the right person without delay.

Omnichannel support software shines here by knowing which agent has the keys to each customer’s problems. It considers factors like expertise, availability, and past interactions.

So it’s not just about speed; it’s about crafting responses that resonate on a personal level because they come from agents armed with context and skills matched perfectly to each query.

So when you ask how this smart system knows whom to send queries to?

Think machine learning algorithms analyzing tons of data points, all in real-time. They predict needs based on history and urgency, making decisions almost human-like—only faster and often smarter.

It means you’ll see fewer frustrated customers bouncing between departments or repeating themselves over multiple channels—and that means better experiences all around.

And your small business will feel the impact too: quicker resolutions lead directly to increased efficiency within your teams and can even affect bottom lines positively.

3. Automated Customer Service Options

Customers today expect quick and easy help when they hit a snag.

They don’t want to wait on hold or wade through complicated menus. That’s where automated customer service options, like chatbots and self-service portals, come into play.

Since these platforms enable you to offer immediate responses, these tools are game-changers for handling high inquiry volumes.

Forbes highlights the rising importance of chatbots in customer interactions because they can quickly decode what your customers need and guide them without delay.

In fact, the beauty of self-service portals is their ability to give control back to customers.

According to Forrester Research, more folks across age groups prefer solving issues themselves before reaching out for further support. This doesn’t just cut down wait times but also frees up agents so they can focus on trickier problems that bots can’t fix yet.

Omnichannel software steps it up by syncing data across channels—a must-have feature highlighted by Gartner’s research. This means no matter how a customer reaches out, the context follows them seamlessly from one platform to another without any hiccups in communication.

All said automated solutions aren’t about replacing human touch but rather enhancing it with efficiency and personalization—it’s about making sure everyone gets exactly what they need fast.

4. Seamless Document Management

Small businesses face various document management challenges.

They often lack the resources of larger enterprises, but their need for efficient document handling is just as critical.

Enter omnichannel support software with integrated document management systems: a game-changer for small business owners who want to stay organized without breaking the bank.

Omnichannel platforms simplify accessing and sharing documents, ensuring that all team members can find what they need fast. This cuts down on time spent searching through files and folders—a boon for productivity.

But it’s not just about saving time; it’s also about serving customers better.

What’s more, many document management tools come with features like automated version control and permission settings which let you manage who has access to what information.

So it can double in as document control software for small businesses—a must-have feature for keeping sensitive data safe, even within smaller teams where everyone wears multiple hats.

All this adds up to something simple yet powerful: peace of mind knowing that whether you’re onboarding new staff or handling an urgent customer question,Your documents are always right at your fingertips—exactly where they should be.

If you run a small business, you can now say goodbye to doc chaos. Omnichannel software will make file sharing a breeze and customer service top-notch.

5. Mobile Optimization

The shift to mobile-first customer service is not just a trend; it’s a response to the growing demand for on-the-go support.

With most customers reaching out via smartphones, omnichannel support software has taken a pivotal role in delivering great customer support, especially for small businesses in 2024.

It ensures that users have a seamless experience, whether they’re chatting with an agent while sipping coffee at their favorite cafe or scrolling through FAQs as they commute.

They are also designed with responsive interfaces.

It means you can automatically adjust content layout according to your device size and orientation, making sure information is always accessible and legible. This adaptability means your customers won’t miss out on vital details because of awkward formatting or unclickable buttons – common pitfalls in non-optimized sites.

This responsiveness doesn’t just satisfy immediate needs but also fosters long-term loyalty, as quick access help often translates into positive overall experiences with your brand.

Incorporating features like click-to-call buttons within the interface enables effortless transitions from self-service to live support. This fluid movement across channels mirrors how people use their devices – hopping between apps and websites without skipping a beat.

All said and done, omnichannel solutions bridge gaps that could otherwise frustrate modern consumers who expect nothing less than instantaneity.

To enhance customer support and ensure a seamless experience, businesses should consider implementing omnichannel marketing as part of their strategy. By integrating communication and support channels such as email, social media, live chat, and phone into a unified approach, omnichannel marketing allows companies to meet customers wherever they are. This not only improves responsiveness but also creates a consistent and personalized experience, fostering stronger relationships and greater customer satisfaction.

Conclusion

Let’s recap what an omnichannel support software can do for you.

Centralized customer info?

It means knowing your customers like the back of your hand, across every channel.

Seamless integration? Absolutely. Say goodbye to clunky transitions and hello to smooth conversations that flow no matter where they start or end.

Intelligent routing gets those questions to the right ears fast. It is a great way to deliver best customer service software for startups with a small support team, by boosting efficiency, slashing wait times.

You can also dive into the analytics and let numbers guide your next power move in service strategy.

Tailor interactions with personalization tools—they make each chat feel like a one-on-one sit-down. Go mobile because these days, everyone is on-the-go and accessibility cannot lag behind.

Add proactive help into the mix and watch satisfaction soar before problems even pop up. You’ll be able arm your team with collaboration tools so they can knock out issues together, faster than ever.

You’ve got this!

Start building better relationships today—with the right omnichannel approach backing you up all the way.

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The Long-Term Advantage: Exploring Return of Premium Term Plans

January 25, 2024

Navigating the intricate landscape of financial planning can be a daunting task, given the myriad of options available, each meticulously crafted to address diverse needs and preferences. In this expansive realm, one particular category that has garnered noteworthy attention is return of premium term plans. These plans stand out as a unique offering, presenting a compelling blend of financial security and the potential for returns.

As we embark on a comprehensive exploration of these plans, it becomes imperative to dissect their key facets and delve into the myriad benefits they bring to the forefront. By unravelling the intricacies of return of premium with term plan, we can gain valuable insights into their role and significance within the broader financial landscape.

Grasping the Concept of Return of Premium with a Term Plan

A Term Plan is a straightforward life insurance policy that provides coverage for a specific term or duration. What distinguishes a return of premium term plan from simple term insurance is the unique feature of receiving the premiums back at the end of the policy term, provided the policyholder survives the term.

The Core Benefit: Financial Protection

The fundamental purpose of any life insurance plan, including the return of premium term plan, is to offer financial protection to the policyholder’s family in case of an unfortunate event. The death benefit provides a lump sum amount to the nominee, ensuring that the family is financially secure and can maintain their lifestyle even in the absence of the breadwinner.

Cost-Efficiency of Term Plans

One of the primary reasons individuals opt for return of premium term plan is the cost-efficiency they offer. Traditional life insurance plans tend to have higher premiums due to the inclusion of investment components. In contrast, term plans are more affordable because they focus solely on providing life coverage without any savings or investment elements.

Return of Premium: A Unique Proposition

The standout feature of return of premium term plan is the return of premiums at the end of the policy term. This adds a layer of financial prudence, as individuals get back the money they invested in premiums if they outlive the policy term. It effectively combines the benefits of life coverage with a savings component, making it an attractive option for those seeking a financial safety net.

Tax Benefits: Adding to the Appeal

In addition to the core benefits, return of premium term plan also offers tax advantages. Premiums paid towards these plans are eligible for tax deductions under Section 80C of the Income Tax Act. Moreover, the maturity amount received is exempt from taxation under Section 10(10D). This dual tax benefit makes these plans even more appealing for individuals looking to optimise their tax planning.

Flexibility in Policy Terms

Another noteworthy aspect of these plans is the flexibility they provide in terms of policy duration. Policyholders can choose a term that aligns with their specific needs and financial goals. This flexibility ensures that individuals can tailor the plan to their life stage and responsibilities, making it a versatile financial instrument.

Evaluating the Return of Premium Component

While the return of premiums is undoubtedly an attractive feature, it’s essential to evaluate its impact on the overall returns. In some cases, the return of premium may not match the returns from dedicated investment avenues. Prospective policyholders should carefully assess their financial goals and compare the potential returns with alternative investment options before committing to a Term Plan with Return of Premium.

Considerations for Policyholders

Before selecting a return of premium term plan, individuals should consider their financial objectives, risk tolerance, and overall financial situation. Assessing the adequacy of the death benefit, understanding the policy terms, and evaluating the insurance provider’s reputation are crucial steps in making an informed decision.

In the dynamic landscape of financial planning, return of premium term plan emerges as a versatile and cost-effective option, combining the assurance of life coverage with the added advantage of premium returns. As individuals navigate their financial journeys, exploring such innovative solutions becomes essential for building a robust and secure financial future.

The Road Ahead: Making an Informed Decision

Return of premium term plan presents a compelling proposition for individuals seeking a balance between life coverage and a financial safety net. The return of premiums adds a savings element to the insurance, making it an attractive option for those who value financial prudence.

The decision to opt for a return of premium term plan requires careful consideration and a thoughtful evaluation of individual financial goals. TATA AIA’s presence in this arena further reinforces the viability of such plans, offering a reliable option for those seeking a harmonious blend of life coverage and financial prudence. By taking the time to assess the benefits and considerations, individuals can secure a plan that not only protects their loved ones but also serves as a strategic component in their overall financial portfolio. In the pursuit of a financially sound future, the return of premium term plan emerges as a beacon, with TATA AIA shining as a trusted guide in this journey.

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What do Online Casinos Mean for the Financial Safety of their Customers?

January 25, 2024

Safety and security in the gambling industry is just as important to consumers as it is in other industries. Finding reliable and safe online options is about carrying out a bit of research, and choosing a casino that works for you.

Is gambling a good way of earning money?

Any reputable casino and industry insider will confirm that gambling should never be used to earn money. This is an unsafe gambling principle to believe in, and can lead to financial issues for the player. Gambling is about chance a lot of the time. Random Number Generator (RNG) technology is in use across the gambling world for slot machine games too. RNG is designed to make games fair for each player. So the chances of you winning free spins, no wagering bonuses in the UK are the same as any other player.

Placing bets beyond your means should be a red flag. There are a number of organisations out there who can provide guidance and support if things have got out of hand. Many casinos do have a page dedicated to safe gambling, and this page should provide some links to support organisations. Casinos can also offer features such as gambling limits within a defined period. Self-exclusion requests are another function to explore. This means you effectively ask for your profile to be terminated or put on hold to prevent you from betting.

What about the safety of financial information?

Anyone who plays games at an online casino should make sure that the casino has decent levels of security to safeguard any financial or personal data that is exchanged.

End-to-end encryption is frequently used by well-known payment partners, which does add some level of relief for players at casinos that process payments with these partners. Blockchain technology is also on the rise, and it is also the primary technology used for cryptocurrency. More details on this technology below though.

A simple security measure you should look out for is that there is a two-factor authentication method used by the casino. This usually involves a security code being sent to either your phone or email. Then you then enter the code on the casino site to confirm your identity. It’s straightforward, and it’s quite easy for casinos to adopt so there’s little excuse for not offering such a feature to customers.

What payment methods are available to players?

The payment methods that are in use for both deposits and withdrawals does vary substantially across the board. Some casinos only offer the more regular methods, such as Visa, Mastercard, and bank transfer. However, many casinos these days offer a huge number of options to their customers. Wide-ranging options usually include regular bank and card methods using fiat currencies, as well as a varied number of e-wallet and cryptocurrency options.

An increasing number of casinos are opting to accept cryptocurrency, since it uses blockchain technology which is incredibly secure. The blocks of data that make up the chain aren’t all stored on one database or computer. And, the data blocks can’t be altered or deleted once created. This not only increases player confidence in making safe payments, but it means casinos can also often lower their operating costs when payments are made this way.

Should gamblers be wary?

Realistically, the majority of online casinos have methods in place to protect your financial data and safeguard your payment methods. However, it’s really important to make sure the casino is licensed, and has a good level of security in general.

Players also need to be realistic about what they can afford to lose if the odds are not in their favour. Don’t place bets beyond your means. In addition, don’t exceed any personal playing limit you want to stick to. It’s simply not worth the worry. If you do find you get into issues though, remember you can always ask for help.

Ultimately, the only person who can have responsibility for your online financial safety, is yourself. Research a variety of casinos to find the one that suits your needs and requirements the best. If in doubt, don’t share any personal data or financial information with a site.

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