Management Buzz 3/04 Insuring international expansion, office socializing breeds productivity, and more

Cover Me

In the excitement of expanding to overseas markets, it'seasy to overlook less sexy aspects of internationaltrade-like insurance. It can be hard to figure out what youneed to cover, from routine property/casualty to major financialexposure due to extending credit to new trading partners. The SBAis trying to make this chore easier with a Web site introduced inSeptember 2003, www.assessyourinternationalrisk.com.

Cosponsored by insurance giant American International Group Inc.and the U.S. Chamber of Commerce, the site offers an overview ofthe kind of coverage you'll need if you go overseas. You canalso submit specific questions to the site for expert input.

Credit insurance is one type of coverage that businesses oftendon't need in the United States, but it's almost arequirement of doing business overseas, says the SBA's MichaelStamler. "If you've got $500,000 tied up in an overseasdeal, your bank is going to want that to be covered by creditinsurance," he explains. The nuances of that and otherinsurance esoterica are outlined at the site.

One thing you can't do at this site: buy insurance online.You'll still have to rely on your broker for that.

Social Studies

Employees who take the time to get to know their co-workersaren't just shooting the breeze. They are actually moreproductive, says Jeffrey Sanchez-Burks, an assistant professor atthe University of Michigan Business School in Ann Arbor. Hisexamination of corporate socialization has found that friendlyemployees are more skilled at communicating with co-workers, whichtranslates to quicker, better collaboration.

"There's a lot going on in interpersonalcommunications, and when people pay attention to [that], they solveconflict more effectively," he says. This insight isespecially meaningful for managers who oversee culturally diversework forces. People from Asia and Latin America, in particular,count on socializing for productive work decision-making.

Pat Fiore, founder and principal of Fiore Associates Inc., amarketing communications firm in Morristown, New Jersey, encourageseffective relationship building by hosting social hours twice amonth for her 11 employees.

Younger employees often absorb key information from co-workersthat lets them pick up quickly on emerging problems. "Theydon't tune people out [the way older workers sometimesdo]," says Fiore. "I've found them to be more openand fearless in the way they approach the people they work with.That's better for team building."

In Passing

Janis and Tim Ketchmark had been operating their MaidProhouse-cleaning franchise for just two months when, in June 2003,one of their best employees was killed in a horrific car accident.Another was badly injured in the same wreck.

The Ketchmarks had to cope not only with the shock and grieffelt by their remaining three employees, but also with the tasks ofbreaking the news to clients, scrambling to fill the holes in theschedule, and quickly hiring new workers. Giving employees time offfor the funeral was a must, explains Janis. She also gave them asmall bonus to thank them for working overtime to take care ofclients.

"They are dedicated workers who couldn't lose time fromwork," Ketchmark says. "We paid them a little bonus forcoming in at such a hard time."

A death doesn't have to be violent or even unexpected todeeply affect a close-knit office, says Jocelyn Libby, president ofthe Oregon/S.W. Washington State Chapter of the Association forDeath Education and Counseling. "The primary thing is toacknowledge the death. You don't just clean out the desk andput someone else in there the next day," says Libby.

In a society that is attuned to the grief of family and friends,the anguish of surviving co-workers is often overlooked. They arethrust into the position of supporting those presumed to be closerto the deceased person.

It can be hard for co-workers who were close to the deceasedperson to feel that their intense reactions are legitimate, saysLibby. Co-workers and bosses need to be attuned to the fact that itwill take weeks, even months, to adjust to the loss of someone whowas a trusted part of the company.

One thing's for sure: Offering paid time off for everyone inthe office to attend the funeral or related events is a standardcorporate benefit. The "2003 Benefits Survey," sponsoredby the Society for Human Resource Management, found that 91 percentof respondents say their companies offer a paid bereavementleave.

One practical way to channel grief is to support the family as agroup, advises Libby. "Get permission from the family to haveone person [serve] as the contact person who can get accurateinformation about what happened and how they can help," shesuggests.

Co-workers might find a positive outlet for their sadness byhelping the family in practical ways-donating to a charitymeaningful to the late co-worker; helping the family sort throughthe necessary paperwork, such as insurance; or helping the familyclean out the person's desk.

Joanne Cleaver has written for a variety of publications,including the Chicago Tribune and Executive Female.