By KAREL SOVAK

For the Tribune

When you think of a family-owned business, you may think of small mom and pop operations.

The dissolution of many family-owned businesses, as they progress to the second, third and even fourth generations, is substantial. According to statistics, about 30 percent of family-owned businesses pass on to the second generation, and only 12 percent make it to the third generation. Most alarming, only 3 percent survive to the fourth generation. Considering that about 90 percent of Midwest businesses are family-owned, the Prairie Family Business Association (PFBA) is looking to bring family-owned businesses to a new light and assist in the succession planning by starting the Affinity Peer Group, or APG.

The APG is intended to bring ‘peers’ together to assist in the growth and development of the member businesses attending the sessions. The APG is relatively new to North Dakota, but not to many family-owned businesses in the region. The APG places generational owners together to share success stories, challenges, trends and even personal development of the members. In this way, first generation owners can share with other first generation owners, while the second, third and even fourth generation owners have their own forum.

PFBA began in South Dakota in 1993 with a mission “To build relationships and offer quality educational programs that promote successful businesses and healthy families!” They moved into North Dakota a few years ago, and have been building momentum ever since. The APG is just one more resource family-owned businesses can use to develop more professionally and consistently, into those next generation owners.

PFBA director Beth Adamson stated the APG consists of confidential groups of 6-10 family business members, in similar corporate roles, meeting monthly to discuss matters of business, family and personal interest.

“Affinity groups are peer groups that meet regularly, allowing members to share experiences and learn from each other in confidential setting and seek advice and help with issues they are facing,” Adamson said. “This current group is preparing to assume leadership roles in their family businesses. They are committed to preparing themselves to take over from the senior generation. The affinity group is a ‘safe’ place where members can benefit from the collective knowledge and experience of their peers. Sharing and learning become the hallmarks of these groups and lessons learned can then be taken to the work place or the family to assist in perpetuating the family business.”

Adamson continued that participants face obstacles such as gaining the respect of company employees loyal to the senior generation, negotiating with siblings or cousins on ownership issues, and preparing themselves to be competent leaders. In addition, many are struggling with convincing the senior generation that they are capable of leading. Members of the initial group are Ryan Barth, Jordan Pope, Jon Simmers and Jill Duemeland. All are in similar positions within their respective companies with regard to assuming leadership roles.

Jill Duemeland, president and CEO of Duemeland Commercial Real Estate is a fourth generation partner in a company that was started back in 1905. Duemeland likes the resources PFBA has provided for her family business.

“Since we have joined, we have created a Family Business Office Policy and have worked with consultants on succession and life planning,” Duemeland said. “By focusing on the family dynamics in addition to the business, this has been instrumental in the growth and success of our company. APG is great because it allows you to connect with individuals who can relate to the joys and challenges of working in a family business.

Jon Simmers, CEO of Bismarck Aero Center is a second generation partner in a business his father founded in 1990 and is an active member in the APG. Simmers said the APG is not only an important opportunity for him personally, but for their entire organization. “The APG group will continue to shape me and allow our organization to plan into the future,” Simmers said. “What is so unique about this group is that we are all in similar states in our business with respect to operating a family business. We all have unique, yet similar experiences that can become complex with family dynamics. We can all learn a lot from each other by sharing best practices and avoiding the mistakes that have been made by other family organizations.”

Simmers indicated that the program is designed to go beyond just him and his organization as well.

“I joined the APG to dedicate time to helping other family businesses succeed”, Simmers said. “In return, I expect the same dedication from the other members of the group.”

Karel Sovak is an assistant professor in the Gary Tharaldson School of Business at the University of Mary. He also facilitates the juniors and seniors in the Emerging Leaders Academy.

Many people view the U.S.- China bilateral relationship as the most important bilateral relationship in today’s world.

With 1.3 billion people and an emerging consumer class, the opportunities that exist for North Dakota companies in China are phenomenal. As the Chinese population grows at an alarming rate, the country is becoming increasingly worried about food safety and security. Furthermore, as the middle class grows, consumer tastes are becoming more sophisticated. The market is craving high quality consumer goods and foods, and North Dakota produces some of the finest food products in the world.

A delegation of North Dakota business leaders and officials got a first-hand look at these opportunities during a recent trade mission to China, led by Lt. Gov. Drew Wrigley, North Dakota Agriculture Commissioner Doug Goehring, and the North Dakota Trade Office.

“The North Dakota delegation had significant success in China and there are already contracts in the works for a number of companies,” North Dakota Trade Office Executive Director Dean Gorder said. “The Chinese market isn’t a simple one. It requires dedication to make sales, and the relationships with Chinese buyers are of the utmost importance. But, once you form a relationship, it’s one that often lasts a lifetime.”

Trade relations between the U.S. and China are just a piece of a larger relational puzzle. Our nations’ ties are dynamic and — as the two most powerful countries in the world — they require careful attention. Admiral Bill Owens, a Bismarck native, retired admiral from the U.S. Navy and former Vice Chairman of the Joint Chiefs of Staffs who now spends about 25 percent of his year living in China, saw the importance of nurturing this sensitive relationship and created a program called The Sanya Initiative.

The Sanya Initiative is a US-China, military-to-military exchange between retired Generals and Admirals. The goal is to foster discussion on many sensitive subjects between our countries, to create dialogue, understanding and friendship and to build more trust between our governments and countries.

“I started Sanya six years ago with the belief that the Chinese-U.S. relationship was the most important in the world and that if we learned anything from the Cold War it was that we needed to foster the very best Military to Military Relationships — something we didn’t do in the Cold War,” Admiral Owens said. “I thought that if we got the most senior retired officers together we could foster a warm, open, trusting relationship which might be of great value to the overall relationship in the future. I believe that it has turned out to be true, but we need much more engagement between our militaries and we need trust between them. I am totally committed to helping to make that happen.”

Launched in 2008, the program is an annual event that typically consists of two days of high-level official meetings followed by two days of official visits in the nation’s capitols.

The U.S. Generals and Admirals that participate are mostly retired Chairman and Vice-Chairman of the Joint Chiefs of Staff — the highest ranking military positions in the U.S. The Chinese military sends the counterparts to these positions.

The discussions are substantive on a range of complicated issues. Topics have included sensitive matters such as security in the South China Sea, stability on the Korean Peninsula, partnering to stabilize Afghanistan and Pakistan, and partnering to support non-proliferation of nuclear weapons in Iran and North Korea.

The Sanya Initiative is considered ‘unofficial dialogue’ yet has strong support from both governments. The program provides a more candid, personal, and less -political platform on which to discuss key issues between the two countries. The program allows dialogue between individuals who care deeply about their countries and believe that a sustained, reliable long-term military-to-military relationship supports their respective country’s well-being, prosperity, and growth.

Participants have strong feelings on the subject matter and points-of-view often differ, but both sides agree there have been misperceptions between the two countries and that both governments should take concrete actions to eliminate misunderstanding through confidence-building measures and open communication.

All discussion points from The Sanya Initiative are taken back to the governments through political attaches who attend meetings. A smaller scale follow-up meeting of the Sanya Initiative is usually scheduled a few months later, and communications are continued throughout the year.

With the success of programs such as The Sanya Initiative, the relationship between the U.S. and China can remain open, despite political tensions. From North Dakota’s perspective, this could mean improved trade opportunities.

Former Ambassador and Congressman Mark Green recently visited North Dakota for the Global Business Connections international business conference and shared his views on the Sanya Initiative. He stressed the importance of information sharing between countries for economic growth and applauded North Dakota’s efforts in the international arena.

“Information sharing and engagement in the world goes a long way towards promoting better understanding and preventing unnecessary conflict. The same is true in the economic arena, and to get our economy moving again, we must be active participants in the global marketplace,” Congressman Green said. “North Dakota is way ahead of the curve and knows this well, as exports increased by more than 33 percent last year from the state and over 300 percent in the last decade.”

Brittany Posey is the Membership Coordinator at the North Dakota Trade Office. She also serves as part of the NDTO Communications Team.

By KAREL SOVAK

Social entrepreneurship has picked up steam over the past few years based on the number of conferences, workshops and the rise of L3Cs, or low profit limited liability corporations.

Social entrepreneurship finds its place in our capitalistic society at a crucial time. With the advent of the corporate financial collapse, demonstrations like Occupy Wall Street and even the issues overseas with the European Union, there may never be a better time for entrepreneurs to focus on solving some social issues. Social entrepreneur looking to impact the triple bottom line focus on three things — people, planet and profit.

Since the L3C concept is new to the scene, many state legislatures have looked into their organizational structure as a viable business model to assist the social entrepreneur. Currently, eight states have approved the L3C as a legal business structure. Ten more states are looking to introduce the legislation in 2012. The legislation requires an amendment to the general limited liability act. This opens the door for those entrepreneurs who wish to solve the issues of poverty, hunger, homelessness or literacy (and the list goes on) to create a business model that acts like both a non-profit and for-profit. In fact, some social entrepreneurs have chosen to help in the sustainability of non-profits or the social responsibility of for profits.

In addition to the government side of business, the number of post-secondary institutions offering courses in social entrepreneurship has risen more than 400 percent in the last decade. The Opus College of Business at the University of St. Thomas, St. Paul, Minn., is included on that list of schools looking to encourage social entrepreneurs in their MBA program of study. Additionally, many community economic development organizations are promoting and offering incentives to those choosing the L3C path, especially in youth initiatives.

There are many routes the social entrepreneur can take. Combating obesity, finding alternative energy sources, even taking on floral shops are current businesses finding success in the United States. Absent legislation from the state of North Dakota to create the L3C model, there are still many reasons for social entrepreneurs to look within our borders to hone their skills in a social manner.

Due to the oil activity in the western part of the state, North Dakota is trending to be on the verge of many organizations to fulfill the myriad social needs in many communities. While some of the for profit companies are doing a satisfactory job providing for housing and other infrastructural needs, social services needs will continue to be on the rise. Currently, one of the areas of greatest needs is the emergency medical services. This industry has seen a large attrition of vital talent taking new positions in the oil industry at much higher wages. Many volunteers are also scarce, which calls for a demand to find more innovative solutions to meet the many needs. Perhaps North Dakota legislators can see their way to consider adopting the L3C as a solution?

Return on investment (ROI) now has a new player in the market. For non-profits, the ROI has always been based on the number of recipients served, or the attempted fulfillment of their mission. The for-profit corporations’ ROI is a performance metric used to measure the gain of an investment based on the cost of the investment. For the L3C, the ROI seeks to blend the risk and return of any profits to promote the benefits of social goals.

While L3Cs may not be the pot of gold at the end of the rainbow, they could provide a much needed relief with the many storm clouds brewing over so many societal issues.

Karel Sovak is a professor in the Gary Tharaldson School of Business at the University of Mary. He is also the facilitator for the juniors and seniors in their Emerging Leaders Academy. He can be reached at 701-355-8042, or ksovak(at)umary.edu.

Start-up companies tend to focus more on the product or service they are creating over the design and culture of their organization. Bad mistake.

While there is no proper percentage of the time and energy to be expended on various components of a company, entrepreneurs are wise to dedicate some of their efforts into the design of their organization. Once the legal structure is determined (i.e., limited liability partnership, or S-corp) entrepreneurs need to decide how the culture they are creating will be wrapped into a quality organizational design.

McKinsey and Company share a model that provides some solid foundations for a majority of organizations. The 7s model was created to allow entrepreneurs a chance to fashion a “shared values” culture around all of the necessary pieces for a quality organizational design. Branching off the shared values center are strategy, structure and systems, along with staff, skills and style. These seven “S’s” have been deemed interdependent, yet due to their integrative nature within an organization, dependent on each other for organizational success.

Strategy deals with the mission, vision and values of the company. The structure of the 7s matrix consists of reporting processes, such as lines of authority. The systems are the daily operational parts of how the organization runs. Staffing contains the type of talent the organization seeks to obtain and retain, along with the skills necessary for competence to shine through. The final s –style, is all about the leadership methods running the company.

Of course, there are myriad theories on organizational design, and with each organizational design comes the process of asking the proper questions around the culture the entrepreneur has created. Some of those questions are the following: Why do we exist? How many departments do we wish to have in our organization? How will we communicate to our internal and external stakeholders?

One important question the entrepreneur has to ask is “How much will I be able to actually lead in my own organization?” After all, entrepreneurs want to do what they do best, and that is to create. A quality organizational design can help the entrepreneur find their leadership style while building and growing the company.

If the business plan helps to identify the financial needs, then organizational design assists with the operational issues and can also help entrepreneurs answer the many questions that come with most startups. Howard Schultz, CEO of Starbucks penned the book “Onward: How Starbucks Fought for its Life Without Losing its Soul” and describes the ordeal that plagued Starbucks — losing sight of its core values.

A mantra that Schultz uses to express the return to the values that made Starbucks an iconic business model since the mid-1980s details the importance of a proper organizational design. “Starbucks is not a coffee company that serves people; it is a people company that serves coffee”.

As you can see, it is the people that make the company. Such is the lesson many entrepreneurs can learn from a well-seasoned veteran in the business world. Entrepreneurs who take the human element out of the equation of their developing business will tend to make the road even more difficult for organizational success. Organizational design starts with the people who buy into the culture of the business being created. Entrepreneurs need to start with that in mind.

Karel Sovak is an assistant professor with the Gary Tharaldson School of Business at the University of Mary. He also facilitates the juniors and seniors in the Emerging Leaders Academy.

What is the State of North Dakota’s role in the global economy?

North Dakota today is an inverse image of the U.S. economy at large. With a population slightly more than 672,500, our tiny state touts an envious unemployment rate of 3.8 percent, and according to a recent Gallup survey, North Dakota has the best job market in the country. Our economy “sticks out like a diamond in a bowl of cherry pits,” as Ron Writz, editor of the Minneapolis Federal Reserve’s newspaper, “fedgazette,” accurately described.

The success of North Dakotans is due, in part, to a diverse economy, including a vibrant agricultural sector and the many expanding industries surrounding energy development. Whether it’s oil, coal, grains, soybeans or specialty crops, a growing world economy is driving higher prices and demand for North Dakota’s goods.

North Dakota has increased its exports by a staggering 300 percent since 2005. It’s no doubt international exporting is a vital piece in the prosperity of the North Dakota economy — a piece that is not without controversy.

For North Dakota agribusiness professionals, one of the arguments relative to our place in the global market is the following:

“Is it in North Dakota’s best interest to not only export our products internationally but also the technology and know-how necessary to help these international buyers modernize their agriculture practices and become more sustainable?”

This is a highly-debated issue for agribusiness professionals throughout North Dakota, and there are valid points on each side of the argument.

The example

In recent years, many North Dakota exporters, specifically those in the agriculture fields, have taken an increased interest in the former Soviet Union countries including Kazakhstan, Russia and Ukraine. The geography and climate of these areas closely resembles that of North Dakota: large flat lands and rich soil are agricultural advantages while long, harsh winters create difficulties for farmers. It’s a catch-22 with which North Dakotans are all-too familiar.

Since the fall of the Soviet Union, these countries have had an increased interest in modernizing their farming operations to become more productive and help feed their respective populations. With North Dakota’s expertise and technology, our machinery producers have been able to provide large quantities of machinery to these countries. When we sell equipment to these countries, we are also sharing information on how to capitalize on the geography while working with a temperamental climate. In essence, we’re sharing the know-how to become successful farmers. But should we?

Point A:

Exporting know-how creates competition for North Dakota

On one side of the argument, many North Dakota food producers see sharing technologies and techniques with emerging international markets as handing over the keys to North Dakota’s share in the global food market.

While North America and the European Union markets account for the majority of U.S. agriculture machinery exports, most of these markets are fairly mature. For five years, until the financial crisis of 2008, dynamic market growth was most conspicuous in Russia, Ukraine and Kazakhstan — countries that were engaged in long-term modernization of their large and historically under-capitalized agricultural economies.

Some North Dakota machinery manufacturers have helped these countries do just that: modernize and become more successful farmers.

The North Dakota Trade Office led its first trade mission to Kazakhstan, Russia and Ukraine in 2006, with a goal to connect North Dakota machinery manufacturers with buyers in these growing markets. Since then, exports to the countries increased from $263 million in sales in 2006 to a projected $557 million in 2011. A few North Dakota manufacturers have even set up training programs in these countries to help educate farmers how to increase crop yields while using North Dakota-manufactured machinery.

Food producers might say that such programs have created direct competition for North Dakota growers. Take wheat, for example. Kazakhstan, Russia and Ukraine have become significant wheat exporters in recent years, together surpassing U.S. exports in 2008-2009. These countries were net importers as recently as 1995.

During the mid-to-late 1990s, these countries’ combined share of world exports was less than 5 percent, averaging less than 1 million metric tons. Their share of world exports had risen to more than 25 percent and for 2008 and 2009 exports averaged 36 million metric tons. Low production costs and new investment in their agricultural sectors have enabled their world market share to climb. For comparison, the U.S. share of world exports fluctuated up and down between 20 percent and 30 percent, according to the USDA Wheat Baseline projection for 2011-2020.

The increase in production happened in-line with North Dakota’s focus on increasing machinery exports to the region. According to the statistics, these former Soviet countries have quickly become what could be viewed as direct competition for North Dakota’s wheat producers. Did the export of agricultural technology from companies in North Dakota help fuel this increase in output? Quite likely. But, does that mean that these companies should forgo the opportunity? Is it, in fact, harming our state’s overall productivity?

Point B:

Emerging markets will modernize; North Dakota should participate and capitalize on the opportunity

On the other side of this argument are those who believe emerging markets such as Kazakhstan, Russia and Ukraine will modernize, with or without the help of the U.S. They say this is the opportunity for North Dakota to benefit from creating allies with emerging countries, instead of forgoing opportunity and handing over benefits and profits to another market.

The most explicit benefit seen from the export of machinery to former Soviet countries is in dollars coming into North Dakota. Since the first trade mission from North Dakota to Kazakhstan, Russia and Ukraine, the state has exported a total of $2.3 billion in agricultural machinery. That amount of money spurs job growth and helps stimulate the state’s economy significantly.

Another layer to the argument of why we should help regions modernize is the glaring fact that the world is in a food shortage and growing populations will only increase the demand for food, worldwide. For most of the past decade, the world has been consuming more food than it produced. After years of drawing down stockpiles, in 2007, the world saw global carryover stocks fall to 61 days of global consumption, the second lowest on record.

“Agricultural productivity growth is only one to two percent a year,” said Joachim von Braun, director of the International Food Policy Research Institute in Washington, D.C., at the height of the crisis. “This is too low to meet population growth and increase demand.”

According to an Oxfam report, food production would have to increase 70 percent by 2050 to feed the world’s population — an increase that will be nearly impossible. Demand for high-quality food products from North Dakota will only continue to increase.

Beyond the former Soviet Union, emerging markets such as the African countries of Ghana, Mozambique and Malawi, as well as India, are in desperate need of agricultural modernization. Many North Dakota agribusiness exporters believe this is the next frontier for their company’s products. Will helping these countries become sustainable harm North Dakota’s thriving economy?

“International exports are a vital aspect in the rapid expansion of North Dakota’s economy,” said Dean Gorder, executive director of the North Dakota Trade Office. “If we forgo the chance to modernize agriculture in emerging markets such as Africa and the former Soviet Union countries through the export of agribusiness technologies, you can bet that markets such as Canada and Germany will capitalize on our missed opportunity. That’s a chance North Dakota shouldn’t be willing to take.”

Brittany Posey is the Membership Coordinator at the North Dakota Trade Office. She also serves as part of the NDTO Communications Team.

During recessionary times, start-up companies that have made the crucial advancement to what appears to be a viable company may be paralyzed with a reflective, “What next?”

Jeffrey Weber, author of “I.D.E.A. to Exit: An Entrepreneurial Journey” writes that even anticipated growth can become problematic and leave entrepreneurs wondering what directions their companies can or should take. Should the company expand? Could the company add staff, and if so, in what areas? Will the company simply hold tight and look to do more with less? These questions can paralyze even the most stable organizations. Throw in the inexperience of handling additional — mostly unanticipated — business success, and entrepreneurs can whither in despair.

Perhaps the status quo will just have to do. Maybe a lucky appearance before Mark Cuban and the “sharks” of investment reality show “Shark Tank” will come through. Or, businesses can turn to mentors who have taken on these issues and gained their own successes.

Entrepreneurs using this last method can be assisted by the method of scaling. To scale up means to apply some critical resources — including physical, financial, technological or human assets — to a system within the company. Whether the system is in operations, sales, marketing, processes, product creation or product development, scaling is a proven recipe for success, and these entrepreneurial mentors know it well. Weber indicates that scaling needs to be intentional.

Conducting a feasibility study may be the best initial step such organizations can undertake to better understand scaling. Finding out which system may bring about the most value to the organization can come from the feasibility study. Mentors can take the first step in the study by assessing the strengths and weaknesses of the organization, as well as the industry in which that company operates. This process should assist in identifying gaps — areas which are going underserved, as well as the resources available. For example, if a company is looking to add staff, a feasibility study will reveal the knowledge, skills and abilities of the human resources available and at what price they can be secured. Additionally, if product expansion is needed, gaps in areas being served can be identified. Such studies also assess the culture of the organization — is it ready for these changes? Feasibility studies are true to their word; they reveal how feasible the growth direction or focus is for your company.

Consider a company that experiences a 300 percent increase in business. Market share is growing, revenue is feeding the cash flow bins, and more business looms on the horizon. Do they hire an extra person? If so, should it be in operations to handle the workload, or in sales to get more business. Should they conduct market research to expand their line of offerings? Could they take on an acquisition of an existing company and add to their market share while eliminating a known competitor? What consequences loom in the background that may add to their risk or that they may be overlooking?

Once the feasibility is conducted, scaling becomes much easier — a relative term to many entrepreneurs. Mentors can discuss the benefits that go along with the costs of doing business in a variety of ways. Mentors can tackle the scaling issue by directing which resources should go to which system or systems. For mentors, scaling isn’t just from some collection of data, or tons of information, but more from gut instinct and wisdom — the sum of all their knowledge and the willingness to apply that knowledge. In the next “Innovation Watch,” we will examine the concept of organizational design and culture.

By Brittany Posey

When PepsiCo advertised in Taiwan with the ad “Come Alive with Pepsi”, they had no idea that it would be translated into Chinese as “Pepsi brings your ancestors back from the dead.”

This type of cultural blunder is obvious, but success in international business goes much further than being aware of the idiosyncrasies of language.

The need for greater cross-cultural awareness is heightened in today’s global economy. Differences in matters such as language, etiquette, non-verbal communication, norms and values can, do and will lead to failed international business deals. Even the seemingly unnoticeable differences in culture can be extremely costly.

Up to 65 percent of failed business is due to intercultural differences causing communication breakdowns that result in poor productivity. It has become clear that failure does not have its roots simply in financial and legal issues.

The key to being successful overseas is more than doing research to find the right market and international counterpart or buyer; it’s about understanding intercultural relationships and building focus on a new kind of capital – social capital.

What is social capital?

There are several types of business capital:

•  Financial capital: The company’s money, property, equipment and investments
• Human capital: The company’s workers and their knowledge
• Organizational capital: The company’s infrastructure including systems and processes

With the increasing global nature of business today, social capital has been added to this list of resources that make business possible.

The World Bank defines social capital as “the norms and social relations embedded in social structures that enable people to coordinate action to achieve desired goals.” The term refers to features of social organizations such as networks, norms and social trust that facilitate coordination and cooperation for mutual benefit.

In short, social capital is a company’s cultural competence and ability to connect with people from other countries in order to make business flourish.

Consider this example: FedEx wisely chose to expand overseas when it discovered the domestic market was saturated. However, the centralized or “hub and spoke” delivery system that was so successful domestically was inappropriate for overseas distribution. In addition, they failed to consider cultural differences such as Spanish workers preferring very late office hours. FedEx finally shut down over 100 European operations after $1.2 billion in losses.

If FedEx had invested in social capital, these losses may have been avoided.

Unfortunately, as with the other types of capital, there is no one-hour seminar or quick-fix for building your social capital. Success takes time, energy and often money, but the return on investment is invaluable.

 At least three cups of tea

The Balti, an ethnic group in northern Pakistan, have a proverb: “The first time you share tea with a Balti, you are a stranger. The second time you take tea, you are an honored guest. The third time you share a cup of tea, you become family.”

This proverb, made famous in Greg Mortenson and David Oliver Relin’s book of the same name, puts for the idea of taking time to build a relationship. This holds true in many countries overseas and is the bedrock of effectively building social capital.

For Americans, business can be done over dinner — or sometimes just drinks — but many countries find this aggressiveness toward the bottom line offensive. For your international counterpart, months of conversations may need to occur before business can be discussed.

Roger Gussiaas, president of Healthy Oilseeds, Inc., a grower, processor and exporter of organic and non-organic grains and oilseeds, has invested years in social capital and building relationships with overseas buyers. Today, 65 percent of his business is international.

“The relationship building is more important outside of America. In America, buying and selling can take place after any type of communication; in other countries, relationships need to take place — including trust and friendship — before business can start,” Gussiaas said.

It’s fine to show that you want results, but keep in mind that Rome was not built in one day. Get to know your foreign counterpart; it’s like creating a new family.

Before meeting a potential international counterpart or buyer, take time to learn about the culture you are entering. Again, you will not learn everything immediately, but failing to learn what is readily available to you may be interpreted as insulting.

Casey Bryl, export sales manager at Amity Technology, says remembering that you are doing business in your counterpart’s country is key, and a little effort — such as learning key words — goes a long way.

“Take time to learn the language, if possible, or at least some words, common phrases and greetings. Even if you don’t say it properly, they appreciate the fact you tried,” Bryl said.

Other basic aspects to keep in mind during your figurative three cups of tea are six fundamental patterns of cultural difference:

1. Different communication styles
2. Different attitudes towards conflict
3. Different approaches to completing tasks
4. Different decision-making style
5. Different attitudes towards disclosure
6. Different approaches to knowing

Being prepared is key. Today, international business doesn’t just apply to Fortune 500 companies such as FedEx and Pepsico — it’s growing in North Dakota at an unprecedented speed.

North Dakotans going international

It’s no secret that North Dakota is booming, and people across the world are taking notice.

Our state’s diverse economy is a sort of one-stop-shop for many countries. We enjoy a vibrant agricultural sector, a cutting-edge technology industry, progressive educational institutions and a rapidly-expanding energy sector. Furthermore, our growth is happening precisely at a time when global hunger for such products has been turning upward, driving the prices and demand for North Dakota goods higher.

Whether for oil, soybeans or combines, the growing world economy is turning to North Dakota for supply, and North Dakota exports are some of the fastest-growing in the nation. Over the past five years, exports in North Dakota have grown over 300 percent. Additionally, we lead the nation in the production of over 15 crops — North Dakota farmers are, in more ways than one, feeding the world. The statistics are phenomenal.

Considering the opportunities, the time is right for many North Dakota companies to explore international export markets. And, with the help of organizations such as the North Dakota Trade Office, District Export Council, U.S. Commercial Service, North Dakota Department of Agriculture and Foreign Agricultural Service, you could likely find an overseas market where buyers would be ready to receive your products.

North Dakota’s success has always started with people. If this trait is paired with due diligence and focus on social capital, the probability for international success is high.

“We believe relationships are based on honesty, open communication and ethical business practices. If these beliefs are shared, the partnership will be mutually beneficial to both parties,” Bryl said. “In the end, it will be a win-win situation.”

Human resources professionals are being pushed to find high quality employees in a workforce that now includes five generations of workers, each with a unique work ethic and issues. As an individual seeking employment, imagine having a vision or hearing impairment and facing possible misconceptions from employers or potential coworkers.

What if you are already employed and worry about whether or not you will be able to maintain your employment due to your impairment? Will you be able to read a computer screen, receive and send e-mails or participate in a staff meeting, even take a telephone call?

Truly, individuals with disabilities face a plethora of employment issues in the marketplace, and Rehabilitation Consulting Services (RCS) – an initiative of the North Dakota Division of Vocational Rehabilitation (a unit of the Department of Human Services) – works, in part, to assist individuals with disabilities to maximize their employment opportunities.

RCS also works to help businesses find solutions to disability-related issues in the workplace. As specially-trained professionals in rehabilitation and career development, RCS consultants embrace the challenges of each individual client, whether individual or business – and work diligently to find solutions.

An important tool in their toolbox is assistive technology, more commonly referred to as AT. “The ADA (the Americans with Disabilities Act) requires employers to provide reasonable accommodations to employees requesting them,” Assistive Technology Specialist and RCS Consultant Natasha Adamson said.

“But when an employee requests one, an employer is often uncertain of their responsibility in finding the solution that is effective – not realizing that the solution may not necessarily be the most expensive.”

The newly designed RCS SOLUTIONS using AT Lab, located at West Central Human Service Center in the Prairie Hills Plaza at 1237 Divide Ave. in Bismarck, encourages a ‘try before you buy’ opportunity for both employee and employer in the lab, as well as offering trained staff to assist in the process.

At first glance, the lab appears to offer items for retail purchase. However, it’s designed to showcase the latest technology in an interactive setting and provide a solid source for a hands-on experience. Everything from assistive software to keyboards and mouses or furniture and hand-held devices can be tested.

And sky’s the limit, really, to the opportunities available in AT – and not always of the expensive sort. The lab offers an adjustable desk – not only for consideration, but for measurement purposes. Individuals in wheelchairs may find they are unable to work in a general office setting due to desk height.

However, counselors at the RCS SOLUTIONS using AT Lab may determine a workable height and make minor recommendations for the workplace. Displayed are keyboards and mice ranging from one-handed boards and foot pedal mice to tracking programs, which allow the user to (hands-free) move a cursor and other mouse functions by moving his head – where a sticky dot has been strategically affixed and calibrated, enabling the individual to navigate through computer applications.

The Ubi-duo technology allows communication when one individual is either unable to hear or speak without signing. This device lets each participant utilize a keyboard to facilitate communication in ‘real time’ (similar to chatting).

Suppose an individual needs a device to enlarge printed items (money, food labels, price tags) – a wide variety of items provide eyes and in some cases, ears. One device snaps a photo of a given document or printed piece. After decoding it, the text is read aloud.

Another handheld device enlarges the print on a page – with an option for magnifying the space directly to the right, showing correct positioning and alignment when writing. Screen reading, word prediction and dictation software allow individuals to utilize the latest in computer technology, including touch screen application.

With an employer’s permission, a professional analysis of the work site helps fully determine the client needs. “We treat each client, whether individual or business, as uniquely individual,” Adamson said.

“There is no cookie-cutter approach to what we do. We demonstrate, share product information, and make proper referrals to vendor sources.”

Essentially, by providing solutions for workforce development and retention, employers will find advantages when utilizing AT.

“By exploring available technologies and trying equipment, the business space may be adapted to help retain the employee – reducing the need to rehire for the position, ultimately saving the business financial loss in retraining an individual,” Marketing and Business Relations Director Harley Engelman said.

“In most cases, an average AT accommodation costs an employer less than $500.00. “It is also important that employers remember a critical element. Everything that is done to accommodate a disability will impact everyone in a positive manner. AT is not just for those with disabilities,” Engelman said.
“All employees can benefit from it.”

Quite often, he said, individuals with disabilities find they are ill-equipped to market themselves in a computer savvy world. Job searches can be intimidating for the average person seeking employment, and those with additional challenges face an array of situations, from basic computer functions to building a resume. To provide a resource for these folks, a new concept is being introduced.

The RCS Career Readiness Center offers opportunities for individuals to develop and strengthen foundational skills as they prepare to pursue a new career. Help with cover letters and resumes or learning interviewing skills are part of the focus.

“Our goal is to assist individuals in their current and future employment searches,” RCS Consultant Candace Hanson said.

“By teaching them basic foundational skills, they are empowered to search for a job.”

Engelman said a common misconception of individuals with disabilities is that they will perform poorly – or that they will be more difficult to supervise, however, these employees rank higher for employee retention, maintain equal or better performance testing, are relatively easier to supervise and better in attendance than those without disabilities.

Further, he said these individuals come to employment with highly adequate training or education. A goal of RCS is to keep the wealth of expertise of a current employee, adapting the space instead for their retention.

Whether self-driven, employer sought, or job coach referred, RCS counselors are privy to the latest AT devices, technology, or aids allow the individual to achieve independence in the workplace – and will also work directly with businesses to determine solutions for a full gamete of disability-related issues in employment.

One of four North Dakota locations (Minot, Grand Forks, and Dickinson also have labs); the Bismarck RCS SOLUTIONS using AT Lab is currently undergoing an expansion and relocation. A Grand Opening on May 19, 2009 will showcase the expanded lab and the newly created RCS Career Resource Center with the community.

The four labs will eventually be linked for video conferencing, allowing video demonstrations of devices in ‘real time’ across the state. Funded by both the state of North Dakota and with federal dollars, the services for on-site assessment, recommendations, assistance and training are provided at no charge on a one-to-one or group basis.

The cost to the business is incurred when assistive technology is selected for implementation – and that cost varies dependent upon the accommodation selected. The goal of RCS SOLUTIONS using AT Lab is to seek options and find solutions through the use of assistive technology.

And in the process, provide a road map to employment, training, and education as they help integrate these individuals with disabilities back into the mainstream workplace, where they will utilize their abilities.

Story by TINA DING

This issue features key dos and don’ts of job descriptions. Here are editors’ do’s and don’ts for worthwhile job descriptions that will really support HR operations.

1. DO give specifics

For example, rather than stating that a maintenance worker “keeps up equipment,” it is better to spell out the position’s requirements, which might include performing routine maintenance on assembly machines, including adjusting settings; cleaning and lubricating shafts, gears, and bearings; and dismantling and replacing defective parts, etc.

2. DO use accurate adjectives

Include adjectives that describe the pace of work (“deadline driven,” “fast-paced”) or the work environment (“enclosed area,” “noisy setting”), but avoid flowery and overly long descriptions (“cozy but comfortable work environment that encourages creativity”).

3. DON’T use subjective terms

Avoid using words that are subject to differing interpretations. Instead of saying you seek a certain attitude, cooperation, or initiative, describe expected outputs, different constituencies with whom this position interacts, and the nature of those relationships (such as “reports to,” “provides support to,” “supervises”).

4. DON’T rely on abbreviations or jargon

A job description should be clear to applicants and employees. Abbreviations and jargon that are specific to your organization, and not to your industry, should be avoided or explained.

5. DON’T use words that raise a question of discrimination

Avoid language that would be questionable in a job listing. For example, don’t use words such as “youthful” or “able-bodied.”

6. DON’T list unreasonable expectations

Most managers hope their employees will exceed their expectations and take on tasks and responsibilities beyond what’s required in the position, but avoid the temptation to include standards that don’t currently apply to this job.

7. DON’T list excessive qualifications or experience

If you include more than what is needed to competently perform the position, you will end up with bored, overqualified workers and you will limit your ability to place otherwise qualified candidates in the position.

8. DON’T include anything derogatory or specific about a person who previously held the position

Job descriptions are not the place to air grievances or disappointments about individuals who previously held the position. You can use past experiences to help ensure all necessary information is included, but make sure you describe only the job.

What’s the state of your organization’s job descriptions? Up to date? Accurate? Compatible with the Americans with Disabilities Act (ADA)? Good work! However, if you are not so sure that your job descriptions are as well executed as they should be (or if you’ve never even written them), you’re not alone. Thousands of companies fall short in this area.

It’s easy to understand why. Job descriptions are not quick to do, and they are not easy—what with updating and management and legal review, especially for the ADA’s requirement of a split off of essential vs. nonessential functions in the description. Wouldn’t it be great if they were available, already written?

Actually, they are. We have more than 500, ready to go, covering every common position in any organization, from receptionist right up to president. They are in an extremely popular BLR program called the Job Descriptions Encyclopedia.

First created in the 1980s, the “JDE” has been constantly refined and updated over time, with descriptions revised or added each time the law, technology, or the way we do business, changes.

1. Failure to Prescreen Candidates
Prescreening applicants is a must, Heathfi eld says. A half-hour phone call saves hours of your time and other interviewers’ time, not to mention the expense of arranging travel, etc. Your screening call might, for example, reveal that a candidate’s salary expectations are way out of your range, or that the candidate’s background isn’t really a match for your needs. Always prescreen, Heathfi eld says.

2. Failure to Prepare Candidates
Brief your candidates on your company, the details of the position, the background and titles of other interviewers, and anything else that will let other interviewers concentrate their time on the important issues—determining the candidate’s skills and fi t for your company.

3. Failure to Prepare Other Interviewers
Don’t let interviewing be a casual process. Plan ahead. Who is responsible for which types of questions? Who will cover what aspect of the candidate’s credentials? How will you collect responses? Plan for success in employee selection, says Heathfi eld. We’ll add a rookie mistake of our own here. Many hiring managers are so eager to start recruiting that they don’t nail down exactly what they are looking for. You can go through the motions of selection— posting, interviewing, and so on—but when you don’t know what you are looking for, almost anyone fi ts the bill.

4. Relying Solely on the Interview to Evaluate a Candidate
The interview is a lot of talk, says Heathfi eld. By some estimates, it’s only slightly better than chance at picking the best candidate. Plus, the candidate, wanting a job offer, is trying to tell you what you want to hear. Heathfi eld recommends using several methods for evaluating candidates. For example, at one publishing company, the normal pattern was interviews and then, for the best interviewees, a writing and editing assessment. What the company soon learned was that the interview was relatively unimportant—no matter how great the interview, if the candidate couldn’t perform on the writing/ editing assessment, there was no interest. So the company switched the two procedures—fi rst the assessment, then the interview.

5. Do Nothing but Talk in the Interview
Do something more than talk during the interview, Heathfi eld recommends. Walk the candidate around the facility. Ask how he or she would handle some part of the job. Have them do something. As long as the tasks are related to the job, you will gain valuable information.

6. Evaluate Personality, Not Skills and Experience
It’s nice to hire someone you like, says Heathfi eld, but it’s more important to hire the strongest, smartest, and best candidates. People tend to hire people similar to themselves, but that will kill your organization over time, she says. You need diverse people with diverse personalities.
-by Susan M. Heathfield for HR Daily Advisor