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THE NEW FACE OF GLOBALISATION

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The New Face Of Globalisation

Stuart Brown, Director of Customer Experience, TeleWare

For the past two decades the term ‘globalisation’ has been the buzzword in business. It defines and describes the strategy of almost every big company, but following the financial crisis of 2008 we’ve entered a new world. A new concept is emerging, it is being referred to as the ‘gated globe’ and we have to ask ourselves – what does this mean for business?

Stuart Brown, Director of Customer Experience, TeleWare

Stuart Brown, Director of Customer Experience, TeleWare

What is globalisation?

A product of the industrial revolution, the pace, scope and scale of globalisation has accelerated dramatically, particularly in the last 25 years.  It has played a key role in the unprecedented increase in prosperity in the last 50 years, which is now spreading from America and Europe to include many formerly less developed countries in Asia, including China and India.

During this time, the twin forces of technology and economic liberalisation seemed destined to drive ever greater volumes of capital, goods and people across borders. The development of the internet allowed companies to change the way they organised production, and it increasingly allowed services, as well as manufacturing, to be globalised.

The legalisation and regulation during this time reflected the period; it was developed with a global mind-shift and supported international trade. It both encouraged the global community and allowed it to flourish.

Globalisation – good or bad?

Despite the reservations of a few, globalisation was generally regarded as a good thing. It was seen as the free exchange of ideas, people, goods and economics throughout the socio-cultural field and the environment.

When the crisis hit, firstly in America then in Europe, the absence of barriers caused it to spread rapidly. Those who had never been keen on wide-open borders were quick to criticise – this fuelled support for anti-globalisation parties.

The ‘Gated Globe’

The past five years have seen the term ‘globalisation’ quickly fall out of favour. Despite all the factors responsible for its growth – like evolution trade, telecommunications and air travel – still going strong, the concept has itself has become passé.

So what changed? It was the fact that in 2008, the globalised world of finance spawned its own crisis, one of epic proportions. It was a full-blown financial catastrophe that brought the world to its knees.

But as the world economy recovers, why does globalisation appear to still be on the wane?

Some experts have detected a stage they have named ‘new protectionism’ whereby governments around the world are reacting to the crisis and the subsequent recession by subtly erecting barriers to protect their economies.

Others have referred to this as ‘the gated globe’. Almost all countries still embrace the principles of international trade and investment. They still want to enjoy the benefits of globalisation. But they now also want to protect themselves as much as possible from the downsides, be they volatile capital flows or rolling imports. Policy makers have become choosier about whom they trade with, how much access they grant foreign investors and banks, and what sort of capital they admit. These are not impermeable walls, but they are carefully erected barriers.

These barriers include controlling the flow of capital, the introduction of stricter regulation and closer management of the flow of people between countries.

Global capital flows fell from $11 trillion in 2007 to a third of that in 2012. The decline has happened partly for cyclical reasons, but also because regulators in America and Europe who saw banks’ foreign adventures end in disaster, have sought to ring-fence and protect their financial systems. We’ve seen this in the introduction of increasing regulation since 2008, first in the UK in 2011 followed by America’s introduction of Dodd-Frank in December 2013. The rest of Europe is due to follow with the introduction of MiFID II in 2014.

The New Face Of Globalisation

The New Face Of Globalisation

A state of imperfection

I think most people would agree when I say that a few constraints on global finance are not necessarily a bad thing. Where previously the ease of cross-border lending made it possible for places like America and southern European countries to run up ever larger current-account deficits, limiting banks’ foreign-currency borrowing has in most cases been welcomed. Limiting foreign-currency borrowing makes them less likely to fail, should the exchange rate fall.

But like everything, gated globalisation also carries its own hidden costs.

Policy makers routinely overestimate their ability to distinguish between good and bad capital as well as between nurturing exports and innovation and rewarding entrenched interests. Governments must not forget the benefits of financial openness: the opening up before the crisis had done wonders for channelling capital to the best investment opportunities, lowering prices for consumers and promoting competition. Interfering with this process could reduce a country’s growth potential.

In its infancy, it’s hard to know exactly the impact gated globalisation will have… Is it merely a pause on the path to more openness, or is the real reason for its decline is simply that its job is done, that our global economy has reached new heights?

Is it on balance, a good or bad thing?

What we can see is that governments are adopting this more cautious and controlled approach to international trade, and only time can tell us what the lasting impact of gated globalisation will be.

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Can a leader’s level of enthusiasm and optimism really impact the bottom line?

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Can a leader’s level of enthusiasm and optimism really impact the bottom line? 1

By Mark E. Brouker, Captain, United States Navy, founder of Brouker Leadership Solutions

Can a leader’s level of enthusiasm and optimism really impact the bottom line? We hear of the leader’s ability to influence others in powerful ways in politics, academia, sports, among other areas. However, in business, profitability is where the rubber meets the road.  How impactful is the leader’s level of enthusiasm and optimism in creating a healthy bottom line?

One of the truly remarkable and rewarding tours of duty I had during my Navy career was with a small group of highly motivated doctors and pharmacists from all three services – Army, Navy, and Air Force. These professionals were all hand-picked to join a newly-formed team which was directed to reduce the escalating cost of prescription medications provided for all Department of Defense (DoD) active duty (Army, Navy and Air Force) and family members. Our task was made more challenging because we were to reduce costs without decreasing quality of care. At that time, there were over eight million men, women, and children eligible for prescription medications throughout DoD. The annual cost was over five billion dollars and climbing fast.

Our boss, Dan, was a brilliant, hard-working, and extremely passionate leader who was highly respected by all. Dan cared for us and we cared for him. We were a tight group. We treated each other as family. Dan’s passion was contagious, and he quickly established a culture of caring, hard work and trust. We were poised for success. Because I was senior to other members of the team, Dan selected me to be his deputy.

The idea of creating a small team to bend the cost curve for the entire DoD pharmacy benefit was novel – it had never been tried before. While the team shared a genuine passion for this noble and ambitious undertaking, early wins were few and far between.

After the 6-month honeymoon period ended, enthusiasm was slowly replaced with frustration.  Every morning we’d meet with Dan to share the progress or, more accurately, lack of progress with our respective projects. It was slow and insidious at first, but sarcasm, frustration and pessimism crept into the meetings. A few of the more vocal naysayers would spew their negative venom and Dan and I would make meager attempts to mitigate the damage, or in times of weakness simply join in. These meetings frequently went much longer than scheduled, drained everyone of energy, and were generally recognized to be a waste of time. In short, neither Dan nor I led these meetings. We attended them. One could feel the energy, passion and trust dissipate like air leaking from a balloon.

Mark E. Brouker

Mark E. Brouker

It was clear that Dan and I needed to change our attitudes. We candidly discussed the culture of pessimism that we were creating and, more importantly, how it was sucking trust and the creative juices from the team. Over a handshake, we agreed to help each other curb our negativity and celebrate small victories that were indeed happening. We’d address the challenges, but not mire in them. We agreed to not let anyone hijack the meeting with their negativity.

We were more careful in the words we chose – we rid ourselves of cynical remarks. We were careful with our body language. No scowling or worried looks. Above all, we focused on staying positive. We’d invest a few minutes before meetings to reflect on past successes, however minor, and mention them at the beginning of the meeting. We’d then address the challenges, and close each meeting with a reminder, once again, of past successes.

Frustration and pessimism were slowly replaced with enthusiasm and optimism. Wins starting coming. More wins followed. Within 2 years, our small team was saving DoD over $100 million annually with no reduction in quality. Our small team was recognized within the industry as a center of excellence. Our success was nothing less than stunning.

How did this happen? It turns out that Dan’s and my behaviors had a much more profound impact on our team members than we could have ever imagined. In fact, studies have shown that the leader’s level of enthusiasm and optimism directly impacts their team members level of enthusiasm and optimism. Why is this the case? A study by Gallup found that employees who are supervised by highly enthusiastic leaders are 59 percent more likely to be enthusiastic than those supervised by unenthusiastic leaders.[1] In other words, the leader’s behaviors, in this case optimism and enthusiasm, are contagious. Further, studies have indeed shown that businesses led by enthusiastic and optimistic leaders were significantly more profitable than those led by apathetic and pessimistic leaders. [2] [3]

Can a leader’s level of enthusiasm and optimism really impact the bottom line? Unquestionably the answer is yes. The leader’s ability to influence in politics, academia, sports and yes, profitability in business, is profound. Those businesses led by leaders who understand, respect, and embrace the strong correlation between the leader’s level of enthusiasm and optimism as it relates to performance and profits – and most importantly practice these behaviors – are at a distinct competitive advantage.

Be a great leader – lead with enthusiasm and optimism.

Mark E. Brouker, Captain, United States Navy (retired), Pharm.D., MBA, FACHE, BCPS, is founder of Brouker Leadership Solutions, and author of Lessons From The Navy: How To Earn Trust, Lead Teams, And Achieve Organizational Excellence. For more information visit http://www.broukerleadershipsolutions.com/.

[1] Gallup, “State of the American Workplace, 2017.” Accessed February 12,2020.

[2] Michael Bush, A Great Place to Work for All (Oakland, CA: Berrett-Koehler, 2018), 26

[3] Marcus Buckingham, First, Break All the Rules (New York, NY: Simon and Schuster, 1999), 40

 

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JPMorgan to launch UK consumer bank within months

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JPMorgan to launch UK consumer bank within months 2

LONDON (Reuters) – JPMorgan Chase & Co will launch a digital consumer bank in Britain under its Chase brand within months, the U.S. banking giant said on Wednesday.

The bank said the new business had already recruited 400 people and would offer a range of products, including current accounts.

The UK venture will be led by Sanoke Viswanathan, who has been named chief executive. Viswanathan was previously chief administrative officer for JPMorgan’s corporate and investment bank.

The digital bank will be headquartered in London’s Canary Wharf financial district, with customers supported from a new call centre in Edinburgh.

Reports about a likely tilt by JPMorgan at the UK consumer market have been circulating for around a year, but the bank had publicly disclosed few details.

“The UK has a vibrant and highly competitive consumer banking marketplace, which is why we’ve designed the bank from scratch to specifically meet the needs of customers here,” said Gordon Smith, CEO of consumer and community banking for JPMorgan.

(Reporting by Iain Withers; Editing by Jan Harvey)

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European regulator clears Boeing 737 MAX airliner for return to service

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European regulator clears Boeing 737 MAX airliner for return to service 3

(Reuters) – Boeing Co’s modified 737 MAX airliner is safe to return to service in Europe, the European Union Aviation Safety Agency (EASA) said on Wednesday, lifting a 22-month flight ban after two crashes of the jet which caused 346 deaths.

EASA Executive Director Patrick Ky said it had “every confidence” that the plane was safe following an independent European review of changes ranging from cockpit software to maintenance checks and pilot training.

“Let me be quite clear that this journey does not end here,” Ky said in a statement.

“We have every confidence that the aircraft is safe, which is the precondition for giving our approval. But we will continue to monitor 737 MAX operations closely as the aircraft resumes service.”

Regulators around the world grounded the MAX in March 2019, after the crash of an Ethiopian Airlines jet five months after one flown by Indonesia’s Lion Air plunged into the Java Sea. A total of 346 passengers and crew members were killed in the two crashes.

The United States lifted its ban in November, followed by Brazil and Canada. China, which was first to ban the plane after the second crash, and which represents a quarter of MAX sales, has not said when it will act.

Relatives of some crash victims have strongly criticised the move the clear Boeing’s best-selling airplane.

EASA represents 31 mainly EU nations, excluding Britain which formally left the bloc this month. Britain is expected to issue its own separate approval on Wednesday.

(Reporting by Sudip Kar-Gupta, Rachit Vats; editing by Jason Neely)

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