Recent decisions by the Advertising Standards Board and the ACCC put the onus clearly on organisations to take responsibility for user comments posted on their Facebook pages and other social media platforms. Corporations are outraged at the prospect...

Risk modelling requires a radical revamp for the post-GFC economic environment. Oddly enough, the new complexity seems to demand a more simplistic approach to factoring in uncertainty. Focusing excessively on detail may increase the risk of missing...

Many of the world’s economies are still struggling to recover from the global financial crisis. The threat of a crisis Mark II is not out of the question, though it’s unlikely, says Anne Krueger, a former chief economist of the World Bank, and first...

 

Will business stars always outperform the average Joes? Is it possible to teach old dogs new tricks? For decades, researchers have analysed how fixed mindsets affect the academic achievement of children and students. Now, new work led by Peter Heslin...

Until recently, Toyota had long been the world's top car-maker and it rose to that position by using lean production methods. Its Toyota Production System, which pivots on continuous improvement and respect for people, became a best-practice management...

 

The global buzz around the release of Apple's iPhone 5 highlights the widespread adoption of mobile devices and, with it, the proliferation of purpose-built software applications, or apps. Presently, 18% of Australian businesses offer a mobile app...

 

Intergenerational solidarity is vital for building a fairer future. Mutual support across the generations makes the world a better place for everyone – old, young and in-between – but demographic trends are throwing the balance out of whack. As populations age, fewer babies and longer lives look set to place onerous financial and societal stress on the young. So, will older generations be considered a burden on society? At a meeting of OECD social policy ministers, John Piggott, a professor of Economics at the Australian School of Business, outlined three key areas where policymakers can be proactive in redressing the imbalance.

A devolution revolution is underway as governments across Australia seek to make frontline public servants more autonomous. It's a backlash to the command-and-control style of bureaucrats and policy makers who, experts say, are too far removed to know what their "customers" really want or need. Gary Sturgess, the inaugural Premier's Australian and New Zealand School of Government Chair in Public Service Delivery at the University of New South Wales, is leading research into how to make the public service more customer-centric. The former state cabinet secretary says giving greater discretion to frontline public servants – and cutting the middle level of controlling bureaucrats – could shave 20% off government budgets.

Tax compliance for Australian small business has risen dramatically. Small enterprises are spending an average of almost 500 hours or A$28,000 annually meeting their obligations. And new research from the Australian School of Business shows it’s the...

As tax time looms, many Australians are gathering evidence of deductible spending to file a personal income tax return post June 30, with their hopes pinned on receiving even a small sum back. However, in the UK and New Zealand,"wage slaves" and others...

For many young people, saving for retirement may be a rainy day that's just too far away. Should those who are strapped for cash for basic living – perhaps saving for a house or paying for childcare – be able to access their super savings to foot the bill? This controversial idea has been floated by Bruce Bradbury of the Social Policy Research Centre at the University of New South Wales as compulsory contributions begin rising from 9% to 12%. However, industry players remain intent on capturing the attention of youthful retirement savers via social media – like it or not!

Resilience training is on the rise as bosses, under organisational pressure to do more with fewer resources, try to address the increasing stress levels of their employees. New workplace health and safety rules put the onus on managers to act on stress – or risk facing prosecution for neglecting the psychological welfare of their workers. Sending staff on courses to learn how to stave off burnout seems to make good sense.

A new report from the Centre for Social Impact shows how hundreds of financially excluded Australians who have used microfinance to unleash their entrepreneurial smarts, creating a wide variety of enterprises and jobs for themselves and others.

In future, will greater numbers of people cultivate food and take outdoor exercise or lunch breaks in the sky? The idea of gardens above – instead of below – has been around since Nebuchadnezzar II purportedly built the Hanging Gardens of Babylon some time in the first century BC, but they have tended to be a glamorous and expensive novelty. However, today in city centres around the globe, green rooftop spaces are proliferating.

While some Australian organisations have taken the lead in introducing targets to redress gender balance, businesses will soon be required by law to report on the outcomes of their gender equality policies. But which strategies work for shifting the unconscious bias that continues to stop women ascending the corporate ladder?

The financial planning industry's future hinges on trust between planners and their clients. A new ethical standard drafted by the Accounting Professional and Ethical Standards Board may be just what's needed to drive the federal government's diluted Future of Financial Advice (FOFA) reforms further, eliminating conflict of interest problems due to carve-outs for asset fees and commissions on life insurance.

New financial products, just as opaque and complex as those that brought the world to the brink of economic meltdown, are back on the market. There's no stopping them. And while it may seem ironic, financial innovation is vital as a means of managing risk, insist the experts. The latest batch of financial instruments also serves to lower costs for investors. But what shape should financial product innovation take?

Air travel is predicted to boom over the next two decades, but many air carriers – facing multiple risks from climate change and rising costs – are struggling to avert a catastrophic nosedive. Wild weather, skyrocketing fuel prices and taxes on carbon emissions have airlines bracing for extreme turbulence.

Prior to its recent Davos meeting, the World Economic Forum identified inequality as a major threat to the global economy. In an election year, US president Obama is also heeding the loud protests about the gap between the haves and have-nots. And the issue is growing in Australia where the rich are definitely getting richer, in part due to the mining boom.

Corporate players often list managing others as one of their greatest challenges, but new research from the University of New South Wales shows the upshot may be a bigger hippocampus, the part of the brain responsible for learning and memory.

Pay equity has eluded women in the Australian workforce. While there's been a drive to get more women into the boardroom and rising through the executive ranks, the pay gap between men and women has barely budged over the past 27 years. Now a new draft...

What's the role of the victim in workplace bullying? Typically, abusive bosses are blamed when it comes to instances of mistreatment at work, but bullying involves a two-way interaction. While not pointing the finger at workers, new research suggests...

Office romances tend to be considered by management as off-limits or too hot to handle. Creating and implementing policies and guidelines around such personal matters may be tricky, but it’s necessary, insist experts, because poorly managed – or...

Dishonesty is a slippery concept and it's often a debatable element in corporate criminal cases – but there may be a gap between what the law defines as wrong and what the public sees as morally reprehensible. Increasingly juries are being asked to...

Social media offers a powerful platform for organisations to find and communicate with prospective employees and vice-versa. Its popularity is growing fast, with about 80% of recruiters these days checking out candidates' "credentials" on social sites...

The World Health Organization has warned that antibiotic resistant "superbugs" may give rise to a global health emergency. Already about 7000 Australians die annually from infections caused by drug-resistant bacteria, but pharmaceutical companies seem...

An unprecedented stoush is shaping up around Australia’s trailblazing Tobacco Plain Packaging Bill that’s before the Senate. The legislation mandates the use of drab packaging from July 2012 in a bid to make smoking less appealing, and reduce deaths...

Times may have changed, but in 2011 Australian women are still holding the baby. The popular belief that childrearing has become more equally shared is not born out by statistics. Mothers and fathers put roughly the same hours into domestic and paid...

Knowledge@ ASB speaks to Monika Bütler, dean of the School of Economics and Political Science at University of St Gallen, about the differences between Australian and Swiss retirement saving schemes.

Many managers are ill-prepared to tackle gender bias in organisations. However, change is afoot with reforms to the Equal Opportunity for Women in the Workplace Act demanding organisations address inequitable pay and deliver tangible equality outcomes...

 

The Australian dollar's seemingly inexorable rise – with predictions that the exchange rate may tip US$1.50 before Christmas – is being reported by the media with awe. Internet shoppers and offshore holidaymakers are revelling in the disparity. But...

 

Spurred on by tough financial times, co-operatives are re-emerging in Australia as viable, progressive businesses. Country-wide, co-ops have saved "essential" community services and meeting places from the local store or pub to hardware suppliers...

Executive remuneration is a hot topic worldwide and, in comparison with the UK and US, the way Australia pays its big bosses is quite restrained. Proposed new legislation before federal parliament aims to improve accountability for director and executive remuneration...

Social intrapreneurs start initiatives inside companies that have far-reaching benefits, both for the employer and the wider community. While some enlightened bosses empower these entrepreneurial altruists and reap profits and kudos as a result, others resist change...

 

Solutions to the European debt crisis were never expected to be set-and-forget. Now Ireland has its hand out for 24 billion euros to keep its banking system afloat. Portugal also wants a bailout, while Spain's economy is unravelling.

In July 2011, the unthinkable will happen – the worldwide web will start to run out of room. Plans are underway for the move to a new system, known as IPv6, that will not only hugely increase capacity – to an amazing 340 billion billion billion...

 

For supermarkets Coles and Woolworths, milk became the first weapon of choice in their rampant discounting war because consumers are emotionally attached to it.

On average Australians invest 80% of their money locally and 20% with overseas companies. This home bias has brought higher returns than investing in international shares over 20 years.

The Australian Taxation Office is cracking down on multinationals that use complex intercompany accounting methods and valuations to avoid paying tax across borders. Audits of some of Australia's top corporations with subsidiaries in a tax haven, low-tax jurisdiction or bank secrecy country are slated to begin in November. Transfer pricing is an area of international business law that's forever evolving – and it presents major challenges for both the tax authorities and the defendants, as recent court battles have shown. But avoiding tax is not the sole motivation for companies to direct revenue offshore, in global business sometimes patriotism plays a part, suggest experts from the Australian School of Business

A new inquiry into the activities of Australia's central bank subsidiary, Securency, has brought the prevalence of bribery in international business dealings back into the spotlight.

When a foreign independent director is on the board the results may be weaker governance and higher costs – because missed meetings and an offshore director's inability to observe management and glean crucial information have a tangible impact. Companies with foreign directors are more likely to misreport their financial positions and overpay their chief executives, according to research by Ron Masulis, a professor at the Australian School of Business. So, when considering candidates for that next board vacancy, perhaps the emphasis should be less on who you know and more about where they're based.

Working with people you like, trust and respect can be fun, but how does having friends in a workplace team affect outcomes? Social incentives only work some of the time – they are not a "must have" for more productive teamwork, new research suggests. Leadership, effective management and well-designed teams are key, while the presence of high performers on a team also has an impact. But "superstar" team members have both positive and negative effects on their colleagues. Why? Because bright, shiny people who perceive they're contributing more than others may try to redress the balance – or even opt out altogether.

Arguably, Third Sector – or not-for-profit (NFP) – leaders need to be more skilled than their counterparts in the public and private sectors. That's because socially innovative organisations face greater complexity. They must be more tightly managed and disciplined as they balance an extraordinary diversity of stakeholder interests. A not-for-profit chief executive is at risk of being crushed under the weight of goodwill as he or she drives an organisation's strategic direction and manages well-meaning expectations. In particular, successful Third Sector leaders must be exceptional communicators, says Peter Shergold, head of the Centre for Social Impact at the University of New South Wales.

Australia's future as a knowledge economy is threatened by serious skills shortages. Information technology lost its "cool" career allure a decade ago with the dotcom bust. Then Australian corporations widely embraced the financial benefits of offshoring. And these days a career in IT has a further image problem – the ubiquity of the PC has given rise to the perception that everyone has IT know-how. Meanwhile, the call for enterprise architects and others who understand the nexus where IT meets business strategy is turning into a roar. While Australia's attempts to grow its own IT professionals are showing signs of a turnaround, is this too little, too late?

Home ownership was once touted as "the great Australian dream". But the next generation of wannabe residential property owners look set to stay at home with the folks or rent for longer, as housing affordability becomes an increasingly pressing issue. Governments have a responsibility to make the aspiration for home ownership achievable, assert industry players. Positive intervention is required to facilitate land supply, fund infrastructure, create more equitable taxes and improve approval processes. While addressing the short supply of housing seems to be the logical solution, perhaps it’s not as simple as it looks, argues Glenn Otto, an economics professor at the Australian School of Business.

There's ample evidence that giving a cross-border assignment to the wrong manager can have catastrophic results. New research from the Australian School of Business reveals companies are using poor selection criteria when choosing who does business offshore. Often managers who perform well in the domestic business environment receive the prized international assignments. But multinationals should be looking more closely at individual traits and values. Star candidates do not value one culture more than another. They are "transnationalists" who can pursue prospects in different cultural circumstances – and learn along the way. Those with die-hard ethnocentric tendencies need not apply.

Tapping into the collective intelligence of the crowd is the latest means of corporate problem solving. The Internet has put research and development smarts online, giving companies – big and small – an almost instant way to bolster their expertise. Where the financial crisis may have left in-house ideas people in short supply, thousands of experts now are helping corporates solve their problems in real time and often for no cost, explains Patrick Finnegan, an associate professor of information systems at the Australian School of Business. These days it's possible to solve a major engineering problem or have a T-shirt designed by a global team who may be working just for the challenge or the joy of collaboration. Here's how.

Feedback constantly informs the decisions of consumers and managers. But what happens when the information received is unreliable or biased? In an online marketplace, when everyone says they are happy, the feel-good factor may cause the quality of goods to drop as the sellers of top-notch products have no way of differentiating themselves. In an organisation, incredible feedback may mean the wrong person gets promoted – or fired. Ultimately, feedback impacts on reputations. New research from the Australian School of Business shows offering different levels of confidentiality for disclosure is one vital feedback fix.

The consuming habits of the baby boomers (those born between 1945 and 1960) have substantially eroded the rate of saving in advanced nations over the past 40 years. Spending up rather than saving up has created an untenable situation. And future generations will almost certainly have a lower standard of living, unless policymakers step in to reverse the trend, according to a new study from the Australian School of Business. With an ageing population accelerating the problem, researchers suggest the "I want it now!" boomers should curb their selfishness and consider the kids.

In an industry that has relied predominantly on commissions, setting the right price for financial advice may be fraught with difficulty. Following the federal government's ban on commissions for retail investment products, financial planners face a disconnect between the realistic cost of providing comprehensive advice, and what people think they should pay. In place of commission-based payments are three likely methods – a flat fee, a percentage-based amount or the more precarious pay-by-the-hour model. But with clients choosing a needs-only service, the number of planners is predicted to halve within 15 years. Experts suggest the key for clients and advisers is finding their perfect match.

Catastrophic business collapses may hog the headlines but more commonplace organisational glitches are usually ignored or glossed over. That's because failure always gets a bad rap. But this approach is unbalanced, argues Gavin Schwarz, a lecturer at the Australian School of Business. Inevitably, the business life cycle includes "sickness", typically brought on by bad corporate decisions and mismanagement. And quite often people choose to fail as they try to unravel change. Then they rationalise their actions and, oddly enough, cast them in a positive light. The process may not be avoidable – or even acceptable – but at least it can be understood.

Australia's first female prime minister Julia Gillard may not have set out to crash her "head on any glass ceilings", as she told the media immediately after being elected leader. But the historic moment when Australia's first woman governor general, Quentin Bryce, swore Gillard into office on 24 June was viewed as an iconic breakthrough in gender equality. In the corporate world, Australia has a "dire" track record for putting women into top jobs, according to sex discrimination commissioner Elizabeth Broderick. However, signs of change are clearly afoot. Programs aimed at promoting women into senior roles in corporations recently have found the support of some big business heavy hitters. And the first half of 2010 has delivered a shift in the number of women on Australian boards, creating high hopes that women in senior roles may finally be getting even.

Health care is undergoing a silent revolution in which science fiction is becoming science fact. As the global population ages and chronic disease cases occupy more hospital beds, generating astronomical costs, governments in the United Kingdom, the United States, Australia and beyond are turning to technology as a remedy.

European studies estimate the cost of providing telemedicine, aka e-health, at one-third that of face-to-face care, according to Pradeep Ray, director of the Asia-Pacific Ubiquitous Healthcare Research Centre at the Australian School of Business at the University of New South Wales.

Health now accounts for 9% of Australia’s gross domestic product, he says. “Health care is one of the world’s largest business sectors, costing trillions. According to the NSW Auditor-General’s Office, by 2033 the entire NSW state budget could be consumed by health. So we have to do something drastic.”

Government and organisational leadership were stress-tested during the financial crisis – with dire consequences for cases such as 158-year-old financial giant Lehman Brothers, which collapsed under the strain.

Around the world there’s no shortage of political leaders behaving badly. Gordon Brown, the former British prime minister, shouts at staff, according to a new book, and an anti-bullying helpline claims it has had calls from his employees. Australian prime minister Kevin Rudd reduced a young airline attendant to tears with verbal abuse because his vegetarian meal was unavailable during a long flight last year. The media ticked off the PM for publicly giving the cold shoulder to New South Wales premier Kristina Keneally during tense negotiations over health reforms. And the sometimes charismatic and clever former Australian opposition leader, Malcolm Turnbull, is reported to have displayed a bad-tempered, sarcastic side to his staff.

Burnout presents a high cost to individuals in terms of stress and anxiety and to employers in lost productivity. Typically, the depleted state and inability to function normally that we term burnout is believed to be pre-empted by overwhelming, chronic stress and demands. However, according to Professor Ayala Malach-Pines from Israel’s Ben-Gurion University, its causes may be less obvious.

A lack of appreciation or value in the tasks at hand can also cause employees to burn out, she says. In talking to nurses, teachers, police officers and managers, Malach-Pines has found that to continue functioning at a healthy level, most people need to believe their job is useful and important. Managers need to ensure employees understand their efforts are valued, she suggests, not least because – alarmingly – it’s the most motivated employees who are the most vulnerable to burning out.

In July 2009 electrical retailer Clive Peeters had a rude awakening. An apparent cash flow problem seemingly triggered by the economic downturn was revealed to be a A$19.4 million black hole, allegedly a fraud by one of the company's own managers. The missing funds almost equalled the company’s profit that year, forcing a disclosure to the Australian Securities Exchange.

The story is not uncommon. More recently, Sydney-based Specialty Fashion, owner of store chains Katies and Miller Retail, disclosed that an employee had falsely charged A$15 million over almost five years. In 2007, the NSW Independent Commission Against Corruption found “a culture of indifference” allowed employees, former employees and contractors to defraud transport agency RailCorp of A$7 million over four to five years. Failings were identified in internal systems designed to prevent fraud and corruption. The ICAC was told that serious breaches resulted in only a “slap on the wrist”.

Australian tourism is suffering an identity crisis that is arguably epitomised by its marketing confusion. Hearts at Tourism Australia, the federal government’s tourism marketing agency, must have sunk a little in April. Less than 24 hours after the launch of its new advertising campaign calling on ordinary Australians to name what was special about the country, a new website began posting its own cheeky suggestions. One was a photo of a huge shark cruising alongside a surfer with the caption: "There’s nothing like surfing with your mates". Another featured the slogan: "There’s nothing like welcoming the new guy", beneath a photo of a man being bashed during the Cronulla race riots of 2005.

As new taxes go, the proposed new 40 percent super tax on mining sector profits is nothing if not controversial. It has been bitterly opposed by the resources sector, however it does allow for a cut in the rate of business taxation, which means companies can increase the contribution they make to employees superannuation.

In an interview for Australian School of Business, Professor John Taylor and Professor Neil Warren discuss the proposed new tax, and where the money raised would be spent.

It’s the classic chief executive’s conundrum: how do you achieve a balance between engaging consultants to gain cutting-edge experience and knowledge that isn’t available internally, and retaining a sufficient degree of independence to build capacity in the senior management team? For centuries, leaders in business, political and military arenas have relied on advisers to provide a different perspective. Cardinal Richelieu, Machiavelli and Sir Thomas More are just three examples. But in the past 30 or so years management consultants have increasingly become must-have professional advisers to boards, chief executives and senior executive teams on key strategic projects.

In a rapid response to the global financial meltdown, crisis management is now in sharper focus in executive education programs. Cross-cultural management, sustainability, social responsibility and corporate governance are also heading the list for the training and development of corporate leaders.

Chinese companies have missed out on acquiring attractive Australian assets because they lack offshore negotiating skills. The global financial crisis saw a number of miscalculated offers as Chinese bidders overlooked the strength of an Australian economy buoyed substantially by its connection to their own economy. But these early failures are not reliable indicators of what will happen next. Don’t sit back and relax, say China watchers, because the sophistication of Chinese deal makers is growing fast.

Can you identify the triggers that send your customers into a rage? Do your staff know how to turn a potentially damaging situation into a positive one? On average, a customer will give an organisation five chances to correct its original blunder before flying off the handle. Disgruntled customers pose a serious threat to brand loyalty, business and staff wellbeing. Now a groundbreaking study gives insights into the stages of customer rage and offers vital pointers for recovery.

Corporate social responsibility has a new stickiness. Even in tough times, companies have retained their strategies to give back to the community. They see value in solving social issues that affect their businesses, enhance brand and reputation, and promote employee engagement. In Australia, for example, a breakthrough in social enterprise has emerged from the recent financial crisis, says Peter Shergold of the Centre for Social Impact. 

Treasury boss Ken Henry's review of Australia's tax system has finally been published. This reform of Australia’s taxation system offers a once in a lifetime chance to look at the country’s tax system from scratch. Professor John Piggott has contributed to the Henry tax review, and has spoken to Julian Lorkin at Knowledge@Australian School of Business about the decisions the panel reached.

Dr Geni Dechter on the impact of physical appearance on earnings.

Associate Professor Hazel Bateman discusses her research on Australians' understanding of risk, and the possible repercussions of our investment decisions.

Professor Peter Swan discusses the factors that influence the size of an executive's pay packet.

Professor Fariborz Moshirian believes the time is right for the Asia Pacific region to begin developing its own economic community, similar to the EC.

Professor Neal Stoughton argues the time has come for the Australian government to begin withdrawing its economic stimulus.

Dr Vince Hooper in conversation with Marie Kelly on changes to regulation on financial markets.

Marie Kelly in conversation with Dr Vince Hooper on the possibility of a double dip recession

Getting the most out of key professional relationships in your workplace is vital for personal and professional success but navigating these relationships can be challenging. Our guest speakers Associate Professor Sheldon and executive coach Dr Gary Ranker explored this important topic led by facilitator Rosemary Howard, Executive Director & Conjoint Professor, AGSM Executive Programs.