Career Management in Turbulent Times

Having finished the final touches to my presentation for a marketing event on Monday, I decided to take a break by reading The Economist and the Newsweek. Having gone through the entire Newsweek, I had a strange sensation....something you feel when you just know that something is not right but you can't put your finger on it. The feeling intensified half way through the Economist. Having put both magazines down, the reason finally came to me......both publications have moved on from talking all gloom and doom of the current economic crisis to the usual stuff (read America, America and more America!). To be fair they did give some space to news from Iran and Russia especially how the 'tyrants' from these countries will be brought down by the economic downturn. Maybe the prospect of this happening soon has cheered the editors!

Anyway, what I really wanted to focus my thoughts on today is 'what can one do to continue proactively manage one's career' during this economic turmoil?'

Allow me to give my two cents worth; some of which I shared in a recent workshop I conducted. For each, I will take the liberty to share an example from my own (limited) experiences where ever I can:


1. Don't despair : In 1997, I woke up one day thinking that I am busted! My car payments were behind. Some freelance work I was doing came to a halt. My day job was precarious to say the least. In 1998, I became a father of twins. It was tough. Was I worried? Yes. Despair? No. Someone I knew and respected at my workplace told me that 'hey...just keep saying to your self - what's the worst thing that can happen...you will feel better'. Strangely, it turned out to be a good remedy and the reason is in point no. 2 below.
2. Find the higher purpose. My higher purpose has always been teaching, educating and guiding. I learn best by doing these and that’s exactly what I did and did more of and sometimes for very little financial return or none at all. I was happy enough to keep my depression to a manageable level.
3. Change. Sometimes, simply trying again and again and again is not the best course to take if you are doing the same thing in each try. So, I decided to venture into something entirely different. In fact, I even moved my family (then) to a new location. You don't have to go to that extent but institute some changes into your life. Read different books, watch different movies, have lunch with different people. At work, take your head out of the PC and look at what others are doing, what are their job functions, what are their tools, what are they enjoying about their jobs. You might just find your next career objective.
4. Maintain your professionalism. When I left my job at the University, the Dean of the faculty wrote such a heart-felt reference letter that I almost changed my mind about leaving. That letter opened many doors for me. Then, when I left my next job, some associates and clients asked me how much I made from selling off my shares in the company. I didn’t make any money as I was merely an employee of that company. It took my former boss to tell me that the thing he liked about me was that I take ownership of my job and the company no matter how difficult the job is. So, be professional and it will pay dividends when the economy picks up. It did for me.
5. Prepare for skirmishes at the workplace. Tough times will bring out the best in people and occasionally the worst. Don't take it to heart. But, don't allow critical issues to be swept under the carpet either. During times like these, we need to move fast and be lean and mean. So, nip problems before they blossom into full blown issues....but do it in a nice(r) way. I know I don't always do that, but I try.
6. Manage your workplace reputation. If you have been unfairly labeled in any way at the workplace, this is the time to prove your real worth. You can erase years of bad reputation by doing something extraordinarily altruistic or synergistic to your team or colleagues. This downturn may well turn out to be your second chance in your career development.
7. Revisit your career motivations. Take time to reflect on your passions and values. There will be things that you need to re-adjust. The floods (crisis) in the sub-Saharan plains is nature's way of bringing renewal(growth) to the lands. So, this downturn is an opportunity for your renewal. Whether you are still in your job or has been made redundant, you can renew your career objectives and with it a big portion of what constitutes your life.
8. Update your Resume. Not to switch job but to see where you have arrived at since the last time you got your resume updated. Are you where you wanted to be 3 years ago, 5 years ago, 10 years ago? If yes, good for you and hang on in there. If not, time to do point No.7.

Career Management is a reflective process followed by action. What better time to do the former while waiting the opportune time to do the latter. Trust me, the opportune time will come. It always does. Have faith.

Cheers everybody.

Nations & Corporations : Bonded by a Common Crisis of Trust

A couple of days ago, a senior Malaysian minister commented on national TV how cynical the Malaysian public has become about all that they hear from the ruling government controlled mouth pieces.

A few days before that, I heard a similar complaint from an executive of a giant Malaysian corporation. She is tired of having to continuously 'prove' to her underlings that she has their best interests at heart.

Both the minister and the executive are right as the concept of nationhood and the emergence of all powerful corporations are indeed facing a tremendous pressure of legitimacy. True loyalty is hard to come by these days but for good reasons too.

In my opinion although it is true that humans as a whole have gone through a quantum leap in the last 20 years in terms of technology and innovation; the one distinguishing differentiator that not many seem to pay much attention is that humans as a whole have also become much more 'educated' and 'educatable’.

Let me share some examples of this. I hope those of you who are reading this will share your examples too even if they are contrary to my arguments.

Let's take the wheat growers in India. 50 years ago, these are your traditional 3rd world farmers who live at the mercy of weather patterns and the middle men. Both not always in their favour. In fact, the western media often use the faces of these farmers to illustrate their sleek pre-program blitz when dealing with Asian issues which of course are all about strive, poverty and chaos! Today, these very same farmers are adept at using communal internet enabled personal computers to keep track of wheat price and manage their inventory. They are no longer at the mercy of the middle men. Yes, they still need them to move the produce to end users but collectively they are now able to receive a better and fair return from their lands. They have become educated and these 'poor and illiterate' farmers seem to have been 'educatable' to begin with. They had the capacity within them, to learn and to be informed. They just needed a tool.

Then there was this social experiment conducted in the slums of India (I can't recall in which state or city)where specially designed personal computer kiosks were placed at the various spots in these slums frequented by children. The amazing discovery was this : In no time, without any coaching from anybody, without any manual or how-to-do material - these kids learned how to use the machines and navigate the internet! And, they were all illiterate street children...

Corresponding to this, more and more research data points to the increasing disillusionment felt by people at large at institutions that only a few decades earlier held sway over their lives. Religious, legal and community based organizations are facing a congregation that are not so easily convinced by rhetoric. The prevalence of Malaysians who trust blogger produced 'news' compared to the traditional (and official) media is a testimony of this. In fact Obama’s campaign strategy was aimed at positioning himself and his team as separate and different from the existing status-quo and it helped him win the presidency. He appealed to the mistrust that people felt over their government and the large corporations that provide them with employment.

Now let’s get into our workplaces. Do employees buy into the company's stated reasons for certain critical but unpalatable actions. For example, this is the season for down-sizing (oh! please....don't tell me its 'right-sizing'). When you ask people to leave, its down-sizing. No two ways about that. Period. It may be a strategy though. That’s fine. However, the reasons for this strategy needs to be truthful and believable. The company is not doing well? Then make sure the company is not sponsoring a football referee’s shirt sleeves in the English Premier League. Poor financial results? Than make sure, the C-suite guys and ladies behave accordingly. Don't feign pain over the financial results but live life as if there is no tomorrow. Travel economy class and stay in 3 star establishments. Switch to remote meeting tools instead of 16 hour travels and week long stays at exotic locations. Take a pay cut and forgo the fat bonuses. AND, no more symbolic one dollar salary reductions. Make it a thousand dollars.

The following example may be hilarious but it just goes to show how informed and educated our employees can be and we better not take them for granted. This young R&D researcher once told me that his manager informed him and his colleagues during an office meeting one day that the particular natural resource that their company is reliant on will be depleted in less than 15 years and hence they need to be more creative and innovative in their R&D work. Well, the push for more creativity and innovativeness from your people is fine but you had better be more convincing as the young man who shared this example with me said that only days before the meeting, he read in a research journal which quoted the very same manager that his company is in no serious danger as there is enough evidence that there are reserves of this natural resource for another 50 years! I am sure this manager's R&D staff were absolutely energized and became more innovative and creative!!

Just as people are increasingly cynical and suspicious that the governments of the world are in existence only for the benefit of the rich, many workers are also becoming disillusioned with the behaviors of corporations that are seen as having only one purpose for being : The profit of share holders and office bearers. The Enrons, Satyams and Lehman Brothers of the world have further added fuel to this mistrust. How can employees really believe in what their corporate leaders are saying if at the back of their minds there is an ever present fear that they are being taken on a ride and that one day...without any warning... their world will come to a screeching halt. Can you imagine the devastation felt by those who believed in the values of Satyam?

Peter Cappelli's The New Deal at Work: Managing the Market Driven Workforce (Harvard Business School Press, 1999)labeled the relationship between the workforce and their employers as "...an uneasy dance". Well, I can say that today, it's no longer an uneasy dance...it has progressed into a full blown love hate relationship. The revelations of corporate frauds (Maddox-like)and down-right mis-management coupled with the emergence of new forms of news makers and carriers (fueled by the internet and its associated technology)have only exacerbated the cynism of the workforce.

Similar to the examples of wheat farmers and slum children, the workforce of today is also very much more ‘educated’ and informed. Even if they are not, their internet generation children at home will be. I wonder what are the children of those who are working at Monsanto and BAT telling their parents about the environment and health! Karl Marx may well be a satisfied man if he was to live today as he can see how powerful the ‘workers of the world’ have become with their ability to access knowledge and news from multiple channels. Today’s workers are no longer gullible herds. They are powerful forces that will soon revolutionize the may we manage corporations.

But, I do not see a silver lining yet. Governments and corporations are still behaving with blatant disregard to what is true and honorable. Is this the price we need to pay for trusting the mantra of ‘market correcting it self’ before the market finally corrects it self? Only time will tell and in the meantime we have only one tool to manage our workforce as agreed by a team of HR professionals in a recent round-table session I facilitated : Open and honest communication.

“It was just a pen” – Stories from the Ladies and Gentlemen of the Ritz-Carlton Hotel Company

I have on numerous occasions shared the legendary service mentality of the Ritz-Carlton exhibited by its Ladies and Gentlemen all over the globe. A couple of days ago, I came across yet another book extolling the impeccable service culture of this company. Written by Joseph A. Michelli (McGraw- Hill, 2008), The New Gold Standard is filled with stories and anecdotes from the Ritz-Carlton experience.

In one such instances Brian Gullbrants, vice president of operations shares the story of how the company decided to change the pens that they have been using. As they realized that they have been using the same type of pen for many years, they decided to have a newer one comparable to that of their competitors. However, due to un-characteristically careless decision making and a failure to pay attention to details they found the new pens to be of poor quality which were later recalled and the whole process repeated until the perfect pen was found. They realized that for the Ritz-Carlton, 'it is not just a pen'! It is about a service that should be unrivalled in ALL aspects. Then there is another story of how in one of their new hotels, the swimming pool was built in such a way that it is in the shade for much of the day ( of course we Asians would probably love that).

But then this is the legend of the Ritz-Carlton. It is such a great hotel company that we tend to learn valuable lessons not only from its success stories but also from its mistakes and recovery. After each service lapse, they seem to come back stronger. After each natural disaster, they seem to win more friends.

What makes this company such a great service provider? I believe this has something to do with its value proposition to its employees (the Ladies & Gentlemen). Somehow ingrained in its leadership genes is the importance that need to be paid to those who really make a difference in their business – the cleaners, the house-keepers and the kitchen staff. These are the Ladies and Gentlemen on whom the service quality of the Ritz-Carlton rests on.

There is something special that the leaders of a company need to do to gain such a level of service mentality as exhibited by the Ladies and Gentleman of the Ritz-Carlton. I am not sure what that is although the writer has identified a few factors. I still feel there is something more here. Maybe you could phantom what that is after reading the following story as described on pages 13-14 of the book:

Natalie Salazar was a 12 year old figure skater just one step away from Olympic qualifications when she was diagnosed with cancer. One year later she was told that she will not make it. At that tender age, her only regret was that she could not make it to the school’s prom night.

This tragic story was shared by Mrs.Lewis, Natalie’s teacher, at a church in whose attendance was Laura Gutierrez, the area director of human resources at Ritz-Carlton Dearborn. Laura shared it with her Ladies and Gentlemen and they decided to do something about it.

With a spontaneous service mentality so characteristic of the company, they hosted a prom night at the hotel attended by Natalie’s 18 class mates and skating team members. The entire do was manned by the Ladies and Gentlemen with no external contractors involved. The audiovisual technician was the DJ while the IT technician became the official photographer. They put all the decorations befitting a ball for a princess and Natalie danced the night away with an ever present smile on her face. She ate all her favorite food and had all her favorite songs played. At the end of the night she was led away to a waiting chariot to be taken home for rest as she was scheduled for some tests at the hospital the next day. Tears flowed freely and her parents choked with emotion watching their little girl having the night of her dreams.

On Thursday, September 20 2007, Natalie Salazar succumbed to the ravages of cancer. She was buried in a dress sown by the Ritz’s seamstress who also sew her ball dress.

Why would a group of ordinary wage earners go to such an extent to make a difference?
Because they are the Ladies and Gentlemen of the Ritz-Carlton Hotel Company!

Pay Back From Excellence in Service

I was 11 years old again today!

When I was actually 11 years old (seems like a life time ago) I was treated for a particular condition relating to protein levels in the body. I was hospitalized for a week at a particular clinic cum hospital at Jalan Ipoh. The good doctor, Dr. Rommel de Silva attended to me and ensured that I got well enough to attend my standard 5 exams. He was such an emphatic and caring doctor that until today my entire family goes to him first for any and all health reasons. We get his opinion first before proceeding to other specialists if needed.

After a long delay.. I finally managed to find some time to attend to a fatty growth on my right arm. So off I went with my aunt, my perpetual supporter! Dr. Rommel looks thinner but has not lost his smiling and fatherly ways. Seeing him again after all these years brought back the memories of being hospitalized at the tender age of 11. As always he asked about ME first before asking about my problem. Taking a quick look at that lump, he smiled, looked at my aunt and said "No problem... it's just a fatty growth and can be removed surgically or even left alone. If you want I can ask the surgeon to do it today." All this was said to my aunt as if she was the patient. That's because he knows his patients and their families well. In my case, I could be the physical patient but it was my aunt who was the emotional patient. He knew how she loves every single member of my family. Having reassured HER, I was wheeled into the surgery room.

The surgeon came in and the whole thing was done in less than two hours. On the way out, we dropped into Dr. Rommel's room to say thank you.

Isn't it amazing how true when people say that "we buy based on logic but justify the purchase by emotion". This is also similar to my posting relating to my cousin's non-experience in buying his new car. Isn't it also amazing how many businesses whose life-line is entirely based on and subject to customer satisfaction and positive buying experience seem to think that providing good customer service is a negotiable thing. Providing good service to customers is non-negotiable. It is what at the end of the day determines the sustainability of a company regardless whether you are in the food industry, dismantling jumbo jets or higher education. It is all about customer satisfaction.

I wish Dr. Rommel continued success in his business.

And, this posting is being typed by my so loving girlfriend as my right arm is resting!

The War for Talent

I have been writing about the challenges faced by companies and even Malaysia as a nation in areas related to identifying, nurturing and retaining talent. Malaysia's brain drain and Singapore's brain gain are some of the often discussed issues.

The following is an illuminating piece of article written by my colleague, Shyamashree Rudra in Mumbai who recently attended the Young Leaders Conference in Italy.

With her permission, I am reproducing that article verbatim. Thank you Syhamashree.




THE WAR FOR TALENT

2008 YOUNG LEADERS CONFERENCE
Turin, Italy

“THE WAR FOR TALENT”


The demographics of the global workforce are changing. Patterns of migration and social change have altered the labour market and have increased competition for skilled workers and possibly also for low-skilled ones. This is a trend that is set to continue. All entities relying on skilled input are feeling the pinch, from universities to government bodies. Google, Microsoft, Apple, Goldman Sachs, Bank of America, Citigroup, and JPMorgan Chase are all companies based on very few 'hard assets', their value being almost entirely measured by their intellectual property and people. Communications and technology have created a world which is no longer bound by geography, but rather operates through a system of interconnected networks across the continents. Now global corporations are becoming “trans-nationals” – moving parts of their business to the places with the talent to handle it and the time to do it at the right cost. This means hiring the right people in the right place, fast, or finding talent that can be moved quickly around the globe.

It is said that in ancient Greece, talent was the most valuable currency used in the monetary system. Today, in a world where human capital is the key driver of present performance and future growth, the War for Talent is THE battle that organizations, both for-profit and non-profit, need to face and win.

46 Young Leaders, gathered in Turin for the 24th Young Leaders Conference, addressed this topic with a truly global mindset, bringing in perspectives from the United States & Canada, Europe (Austria, Belgium, France, Germany, Italy, Poland, Portugal, Russia, Switzerland United Kingdom,), Brazil, China, and India.

Participants discussed the essence of talent, the type of talent employers are looking for, how the demographic changes impacting the global workforce are heightening the quest for talent, and how talent can be fostered and managed.


I. WHO AND WHAT? – THE NEW GLOBAL LANDSCAPE


The first plenary focused on “what” is talent and “who” is the talent for employers. The Young Leaders agreed on a definition of talent, viewed as “A set of traits and characteristics, both innate and stemming from education and experience, which allows an individual to excel in the workplace, make an impact and add value to an organization, today and in the longer-term”. Talent is therefore a combination of (i) common traits of unusual value, such as a bright mind, the ability to make an impact, leadership skills and vision, and (ii) technical skills, such as industry-specific knowledge, experience, effectiveness in the workplace. One group highlighted that in several intellectual professions, such as art or journalism, individuals may not know how to lead other people, but nonetheless they produce work of exceptional value and ought to be considered talent. For this reason, the traditional concept of leadership might be limiting and leadership should rather be interpreted as the ability to influence the environment and make an impact.
The question: “Does talent exist only if it is perceived by others or is there a talent per-se?” sparked debate among the participants. While recognizing that artists like Michelangelo, Picasso and Leonardo were geniuses who produced unquestionable masterpieces, there was general consensus that recognition of talent by others is essential to the definition of the talent.
The Young Leaders also agreed that as much as talent is typically defined on the basis of objective elements, oftentimes there is an element of subjectivity when assessing value and talent, just like beauty, “is in the eye of the beholder”.
All three groups pointed out the important role played by education, considered as a key means to breed and develop talent. As a result, governments are asked to forge an educational system that facilitates the “birth” of talents and supports their development over time. Also, investments in the university system are key to fostering talent and enhancing a country’s competitive position.

On the question of “What are the employers looking for?” participants agreed that employers typically look for individuals that: (1) have specific technical skills required for the position to be filled, (2) fit with the organization’s culture, (3) show motivation and drive, and only in a few occasions look for people who are also capable of bringing a new perspective into the workplace. In other words, employers tend to look for managers rather than simply for talents. Managers are the strong performers that have the appropriate experience, can rapidly deliver results and fit in the professional environment. They represent the “low-risk bet” that an organization often prefers to make. However, by doing so, employers may miss the high-potential individuals, those who can bring in an innovative and creative approach, also by challenging the status quo, and are capable of adapting to change. These individuals may represent a “higher-risk bet” that will, though, yield a higher pay-off in the longer term. Many of these individuals proved themselves in times of crisis and came through with stronger character.

A distinction was made between public and private sector employers. All the groups highlighted that the public sector tends to be plagued by several issues, including lack of performance-based evaluation and limited hiring of young talents. A system that evaluates its resources on the basis of performance allows individuals to know what the organization’s expectations are with respect to deliverables and results, and what the career path associated with achieving those results is. Such a system increases effectiveness and efficiency of employed resources. Furthermore, an organization that hires an adequate number of young talents can benefit from the new perspectives that typically young people bring in and be in a position to breed the next generation of leaders. This is a particular challenge for many companies or organizations, which change their leadership every five years – “the only constant we face is constant unpredictability”.


II. DEMOGRAPHY AND PRODUCTIVITY

The second plenary addressed two key phenomena that are changing the workplace: (1) Demographics of the global workforce rapidly changing, with a rising population in developing countries that offer large pools of labor, and an aging population in developed countries, facing a looming shortage of skilled-labor; (2) Globalization of the workforce with corporations becoming “transnationals” and the labor pool becoming more and more mobile.
The Young Leaders agreed that addressing these phenomena requires the cooperation between the private and the public sector, which together ought to develop a concerted strategy and shared policies. Moving to the heart of the discussion, the debate became heated.
The demographic imbalances between developing and developed countries result in global migration, mainly from the “young world” to the “old world”. In this context it is very important that governments define an immigration policy that attracts the talent that is mostly required and that ensures a structured, efficient visa-authorization process. This policy is meant to favor the economic development of the home country, as well as support corporations in meeting their hiring needs. The participants highlighted that corporations tend to have a more open and global view regarding immigration as compared to governments. While companies are focused on attracting skilled labor from all over the world at the lowest possible cost, governments need to serve the “higher good” of the nation, taking into account multiple interests, which include preserving jobs in the home market.

On the question of “brain drain”, the shared view was that while developing countries are primarily affected by this plague, also developed nations suffer from it. For example, Europe experiences a constant migration of top scientists to the U.S. This, too, needs to be addressed by devising appropriate policies that motivate talents to remain in their country of origin, by offering them rewarding career paths. Young Leaders coming from the military pointed out that talent retention has become a serious challenge for the Army and has risen as a top priority in senior officials’ agenda. Another proposal was to encourage bilateral talent circulation with bilateral government agreements between developed and developing nations.
On the issue of an aging population, there was broad consensus that senior talent should be optimized, both for economic and social reasons. In particular, retired people can continue to contribute to economic development, by sharing their knowledge with the younger generations and thus supporting productivity. In Ireland, for example, retired people teach English to immigrants. The 60+ year old should also continue to feel engaged in society and connected with the working world. Here, again, the role played by public policy is crucial.
The discussion then turned to the second phenomenon changing the workplace: globalization of the workforce, which can be summarized as “jobs moving to people and people moving to jobs”. For corporations, globalization is mainly driven by the need to reduce costs and access available talent pools, consequently outsourcing segments of the business to low-cost countries, such as China, India, Eastern Europe and Latin America. For individuals, globalization is driven by the desire to find the best opportunities, where these “modern nomads” can thrive.
On the one hand, “young countries” that want to lure investments from global companies need to have an educational system, which breeds workers and graduates that are mostly sought after by foreign employers, including engineers and English speakers. Sometimes “young countries” pay even higher salaries than “old” ones and offer tax incentives as well. On the other hand, corporations that want to build a global workforce need to understand what motivates and inspires people in the different countries where they set operations and develop an inclusive culture that embraces and integrates diversity, rather than imposes, with a colonialist mindset, the head-office policies. Multinational firms should also be supported by their governments, who, in concert with the local governments, draw the political and legal framework where corporations can effectively operate.
Participants concluded that, as the workforce changes its demographics and becomes increasingly global, new kinds of talents are required, talents capable of understanding different cultures and leveraging resources coming from a larger and more diverse pool.


III. TALENT MANAGEMENT

The third and final plenary put the spotlight on talent management, defined as the ability of an organization to recruit, motivate, and retain its most valuable employees. Every participant agreed that talent management is a key competitive advantage for organizations and ought to be “elevated to a burning corporate priority”.
One group observed that there are actually two main categories within talent management: (i) self-management of your own career, (ii) talent management conducted by the organization. The former is becoming increasingly relevant in a society where “modern nomads” frequently change jobs and work with bosses that have the opportunity to know only a portion of their overall abilities.
Research shows that key to talent attraction are employer’s branding and cultural fit. More specifically, employers that are mostly attractive to employees share attributes such as a credible management, a culture of respect, fairness and pride, and an environment of camaraderie. Diversity of the workforce is also relevant, especially for women, who are looking for evidence of a company’s openness to career development for female professionals.
When talking about retention and development, mentoring and feedback were identified as essential tools to nurture talent. Coaching and mentoring were recognized as critical to gain a broader perspective about contingent situations while also receiving support to effectively navigate the system and be able to progress. But sometimes a “generational divide” prevents feedback. Feedback was considered necessary to enhance behavioral competencies and become more effective in the work environment.
Broad consensus was reached on the fact that the Human Resources (HR) Department plays a greater pivotal role in talent management: HR should, from an organizational standpoint, directly report to the CEO (for example as a Senior Vice President) and be an active player also in the definition of company strategy. In well-run organizations, Human Resources performs regular talent reviews and screens the work population, at the various seniority levels, to identify highly-valuable resources and devise a talent strategy that matches their ambitions. HR talent planning provides for an independent, longer-term perspective, which ensures that talents are offered the most suitable development path for them, even if this might be in contrast with their direct bosses’ short-term interests.
Another question raised was how to measure effectiveness of talent management. Several participants suggested retention rates, employee satisfaction rates, employee referral rates, productivity or productivity per employee, as well as success in managing work/life balance.
There was agreement that development of talents ought to be combined with a clear organizational framework and a strong culture that supports talent development, while, at the same time, preventing the excesses associated with the Enron “star culture”.
The Young Leaders agreed that talent management requires also having a clear understanding of what skill gaps might arise in the future in order to proactively recruit those talents capable of filling the needs of tomorrow.


“Great talents are the most lovely and often the most dangerous fruits on the tree of humanity. They hang upon the most slender twigs that are easily snapped off.”
Carl Gustav Jung

January 26, 2009

Innovate or Implode

On my latest trip down south to Singapore 2 weeks ago, I had some dead time to be resurrected. So, upon checking in, I walked down to Clarke Quay for a beer and some reading ( I have limited my beers only to my travels as I find my favorite drink, single malt whiskey a tad too expensive on the road). The time was about 4.30pm and I was thinking to myself whether I will be able to find a nice joint where I can have some shade from the sun and some light food with a nice cold beer served with a friendly smile. Lo and behold, like something out off Inkheart, I found this nice outlet called Sosis selling a brand of German beer called Warsteiner. With a huge German sausage to devour and a cold beer to wash it down, I knew my evening was already well scripted. I could live with the fact that this takes place in Singapore too. I praise the innovativeness of the Singaporeans. You got to pay a visit to Clarke Quay to see what I mean.

But, my evening didn't go that pleasantly as I had wished for and it was all my fault : My thoughts wondered to an article I read in the Edge just that morning on my flight. The writer, after researching almost 2000 SMEs in Malaysia has concluded that our businesses are just not innovative. In fact he argued that many Malaysian businesses don't even feel the need to be innovative! A depressing thought to be entertained at such a moment but entertain it I did.

Any doubts about the writer’s conclusion? Try to find an outlet selling German beer and sausages along the Klang river! Or even a place to sit without foul smell for that matter!

Innovation, in my mind, is characterized by continuous reinvention and change. It is also characterized by hard work to differentiate not only in terms of products and services but also in values and behavior. Eversendai Corporation, is a Malaysian company which can vouch for the fact that by being innovative, Malaysian companies can overcome the odds to become truly world class. This specialist structural steel contractor is the epitome of innovativeness and hard work all rolled into one. Just take a look at Eversendai’s success list which began to take shape after their excellent delivery on the Petronas Twin Towers project :

Dubai : Burj Al Arab Hotel
Emirates Tower
Dubai Airport Control Tower
Dragon Mart
Etc

Qatar : Ritz Carlton
Khalifa Stadium
Etc


Bahrain : Al-Moayyed Towers

Saudi Arabia : Kingdom Centre

An these does not include numerous on-going land mark projects.


But why is innovativeness such a difficult thing to come by? I would like to propose the following top 5 reasons as to why we seem to be loosing out in the sphere of innovativeness:

1.Shackling employees to an extent that they find it to be not rewarding to be innovative.
2.A widespread culture of not tolerating genuine mistakes and failures.
3.Poor or non-existent reward system for innovativeness.
4.Labyrinthine bureaucracy.
5.An education system that limits the creativity by focusing too much on being ‘correct’ and not focusing on the ‘possible’ which finally produces a work-force who genuinely do not know how to be innovative.

And may I add one more particularly Malaysian-made innovation killer? Politics!

How else to explain the seemingly endless road blocks and resistance put in the path of a truly Malaysian innovation : Air Asia?

Tis’ the Time to Lead!

Most of you who follow my writings (ranting?) will know that I don't care much for ‘charismatic’ leadership style. I would rather put my money on plain simple effective leaders.

I don’t have anything against these charismatic types but they just tire me. They become legends so undeservedly and go around strutting their stuff as if the world is indeed their oyster. Of course they get away with it as after all they are indeed….well…charismatic. They have their persona to carry them through the day. Until bad times come calling that is.

So, for all you charismatic leaders out there, here is a list of things you need to do NOW to earn your keep during the tough months ahead:

1.Go and find out how the various critical tasks are actually carried out around you. Go to the manufacturing floor. Take a ride with the delivery guys. Sit in during one of the weekly departmental meetings. Visit the Chinese kitchen of your hotel. Stand behind the ticketing officers of your airline. Have a cup of coffee at the staff cafeteria. Just be where the action is! Oh yes…I know you have done this before but this time I would like you to do it with a difference….Shut up and listen! Enough of your ‘positive attitude’.Enough of your ‘we can do it’ bravado. Now is the time for measured confidence layered with sincerity and honesty. Winston Churchill didn’t go raving about how the Brits are going to crush the Germans with one clean sweep for good reason. He told the Brits all the hard work and sacrifices they need to do and partake in….and then…only then…he told them of the possibilities of victory. He was honest and sincere and his people obeyed.

2.Take more interests in your numbers and figures. Get your financial people to explain to you where it hurts and what needs to be done. If you are too dense to understand the whole complexities of financial data (which I am too) get a trusted associate to explain it to you. Take a cue from Idris Jala, the MD of Malaysia Airlines who said that he didn't have to be an airline guy to know immediately what was ailing the company when he took a closer look at the numbers.

3.Reward innovativeness. If you have been as effective as a charismatic leader as I suspect you must have been, trust me when I tell you that you would have killed of many sources of innovative ideas in your company. Why? Because…..everybody else could never measure up against you. Or at least that is the impression you have been giving them unwittingly.

4.Seek out the status-quo challengers. It’s easy to find them as all you have to do is ask your managers. Seek their input as these rebels never see things as their managers do and you will be surprised to hear the creative solutions these ‘trouble-makers’ might have.

5.Encourage as many informal meetings that you can. In times of crisis, as undoubtedly today is, informal sharing sessions will be much more effective to drill further into the creative depths of your company that hitherto you did not have access to. Listen to these voices and make sense of them in business terms and immediately implement those that can help you improve your bottom line. Surely, more of such valuable ideas will be forthcoming.

So, go do something worthwhile for a change!

Japanese Housewives, Trend Setting, Life Changing : Global Recession

It seems that the current global economic recession will be a trend setting one.
Futurists are saying now that the current economic recession will fundamentally change some of our behaviors and world view. Among others, it is predicted that people will become more cynical towards the so called environmentally friendly behaviors that we are supposed to practice. Take for example the little notices that we find in hotel baths asking us to re-use towels purportedly to save the environment by reducing the usage of detergent. But, we all know that whether we use one towel or two will in the final analysis, be of no consequence as everything else about the entire hotel industry is a colossal waste of resources. There will be a sort of back to basics ‘movement’ with home cooked meals and DIY habits once again taking root. People will be less of a consumer and more of a producer-consumer as in the agrarian societies of old.

And, Japanese housewives apparently will have a big say on which way this recession is going to go. Did you know that these gentle ladies of Nippon collectively control such a vast amount of money that if they do actually act in unison, they can move markets? Reminds me of my grandmother and her 'hoard' of cash under her pillow.

Well, trend setting or not, I think some things will never change and some should not. This past week or so, I have been busy delivering workshops and presentations to clients and despite all this doom and gloom, it is heartening to see that there are many consummate professionals out there who have just simply dug in and continue to do what they are supposed to do. I have already come across a couple of HR leaders who are going around doing their duties with utmost professionalism already knowing that they a mere months away from becoming redundant themselves. Yet, they are heroically putting up a confident front for the sake of their colleagues who are already departing the ranks. One even jokingly told me that “Well, you know…..we sink with the ship…”.

Coming back to the so called trend-setting recession as this one is touted to be, I believe that organizations should not allow any aspects of good corporate behavior to be compromised. Take for example, the nightmarish experience that my cousin had with a car dealer recently. After months of agonizing on which model to go for, he finally decided to buy a VW GTi. A truly mean machine and I was all excited for him but the whole experience for him has probably left a bad taste in his mouth. Firstly, barely 2 weeks after he paid his booking fee, the company announced a discount of RM20,000 on this particular model! When my cousin wanted to cancel his booking, the salesman convinced him otherwise by promising some extras which sounded good….if only they were fulfilled. The conclusion of this story is that this salesman used abusive verbal barrage against my cousin who yet again called this guy to get what he was promised! The whole experience turned out to be a bad one. The car is there. But, the buying experience is not there and being a net-generation, I can bet you that my cousin has already shared his experience with others and this particular dealership just dug his own grave : Allowing an un-ethical salesman to be in its midst and not doing anything about it.

I have been thinking about the RM20,000 reduction issue. It is the prerogative of the business owner to do what he needs to do to maintain his business. This is called strategy. But, could this strategy not be executed in a better way? For example, shouldn't the dealership and salesman forewarned buyers that there will be a discount offered soon BUT with some add-ons not being offered. That way, those who really want these add-ons will just buy at the current price as they have their eyes set on these extras while those who look at these as only ‘nice to haves’ may opt to wait for the discount to take effect. But, reducing such a hefty amount with no differentiation on the product will leave a bad taste on the more recent buyers who had to pay the higher price. Do you need an MBA to know this?

There is a reason why the term ‘Economic cycle’ was coined. It is a cycle! The economy will not stay down forever. But by resorting to unethical and unfriendly measures to both customers and employees, companies are just prolonging their troubles as when things get better and as more choices are made available, both consumers and employees will forsake these businesses. Pain lasts longer than most people would like to believe.

I salute those companies and business owners out there who have not changed their ethical ways to make a quick buck..no matter how justified that could have been made out to be.

Talent Management in Lean Times!

Talent Management in Tough Times


What everyone agree upon is that the world economy is in recession. Opinions differ only in the severity of the downturn. My take is that things will get tougher after the Chinese New Year and the escalating middle east crisis will make things worst. Already, some of the world’s benchmark setting companies are reeling from the first wave of the downturn. This downturn is no longer some nebulous dooms-day scenario by an economists. It is a real and present phenomenon.

While we are fretting over the state of the economy and vis a vis it, companies’ financial performance, lets remember not to throw the baby out with the bath water. It frightens me at the speed of how some companies are laying off workers. I reckon out goes with these redundant workers, some key talents that the companies have spent a huge sum of money and time developing!

So, my advise to all HR decision makers is this : Hold your horses!

Listen, the recession may be knocking on our doors. Yes. But all critical data shows that Asia Pacific will show growth in 2009; albeit at a slower pace. In fact yesterday (6/1/08) the major bursars in Asia did better than expected. That means, things may get tougher but not entirely hopeless. Also, notice any difference between the current downturn and the previous one? I can see one major difference: The remarkable speed at which the major economic powerhouses acted! The Americans of course immediately took the bull by the horn as they always do but look at the Japanese. They sat on their butts while the previous downturn was eating away into their economy. This time around, they were up and running at the first sign of trouble. China, India, Thailand, Singapore, and even Malaysia announced mitigating efforts quickly and decisively. India may even reveal a supplementary economic stimulus soon. I suspect a few other countries will follow suit.

What this means is that, there is a possibility that this downturn will not be as deep as we think. Yes, demands for products and services has already declined from the US and Europe but it may be temporary in nature. Besides, most companies today are so lean and mean in nature that removing any part of its workforce will surely have a negative impact on its overall operation. I doubt that there are much fat left to trim since the last trimming in 1997.

Another worry for me is that companies may forget about their Generation Y employees. This will be their first major, conscious ‘difficult time’. They have had it good these last few years with companies and business leaders bending over backwards (because the economy was good) to accommodate the idiosyncrasies of these Generation Y employees (I like to call them the Starbucks Generation). Undoubtedly, businesses finally bought into the idea by social scientists that Generation Y employees are typically different and more fickle than their predecessors. This facebook-google-ipod generation was recognized as an entirely new ‘employee-type’ that needed to be managed differently. The old command and control style would just not work. A more laissez-faire management style with ample room for creativity and expression of individuality was seen as the preferred style for them. And, organizations found it to be absolutely true. Take the case of a grocery store chain in the US. This company wanted to enhance its web presence and its on-line sales. An external IT consultant quoted a couple of million dollars to get the whole thing off the ground. When some employees heard of this, they set up an impromptu team and presto! They had the whole thing done for less than USD250,000. One of them later, during her spare time, developed a mobile version of the website and on-line sales portal! Enter the Starbucks sipping Generation Y!

In some of the local companies that I have had the pleasure of servicing, I find extremely talented and ambitious young people. It’s almost like throwing ropes around them to keep them down as they are just too fast and too ‘clever’ for the current state of the company. In fact, yesterday I met a gentleman who has been in the same industry for 15 years and in his current company for about half of that. I can see that he loves his job and he is good at it. He has surpassed his performance target for 4 consecutively years. These are the talents that the company knows it will need a few years down the road. Some companies have worked hard and invested much in its HR framework to accommodate these employees. All in all, the system is primed and ready. Everything is in place. To throw all these out in a knee-jerk reaction will be such a waste and ultimately unnecessary.

Also, the Starbucks Generation don’t forget easily. They will remember how they are being treated right now. If they are treated well, they will show their gratitude later when the situation is such that they are able to perform at their best.

However, this is not to say that HR people should just sit down and wish all these bad vibes away. No! There are definitely steps to take and strategies to put in place.

Firstly, freeze all non-critical hiring but keep the doors open for some good talents that are out in the market.

Second, use the downtime for re-skilling your employees. Send them for both soft skills and technical skills training. Also, provide them with career management skills. Trust me, in my years of consulting experience, career management is something that employees truly appreciate and feel grateful for. For you and me that are seeds of loyalty.

Third, take an audit of your talent pool. If you haven’t done so, this is the best time to do it. Identify your talents and match them with what your company has strategized to do to weather this storm. Redeploy them if need be. Somewhere in that office there are people who are exactly the type you need when times are bad. These are the quiet but resilient ones. They may have stayed below the radar, but now you can leverage on them.

Finally, the one absolutely critical thing you need to do is to keep all communication lines open. Make sure that your people are in the know of the company’s performance. They need to be told the reasons behind what ever tough decisions you are going to make. Keep an eye on your hi-po’s. Notice any sort of restlessness and immediately arrange for a one-on-one coaching session to understand why and provide reassurances.

Whatever it is, I sincerely hope that your competitors are not the ones who are going to benefit from your talents a few years down the road. Also, I am sure you have given much business to consultants like me over the years when times were good. Now is the time to get some pay-back! Call your consultants and pick their brains for ideas and strategies. Make them your sounding board. In fact, I have been sending out emails to that effect to some of the senior HR people I know. Nothing beats sharing and two heads sitting down together to tackle a problem.

2009 : Through My Eyes

Global Trends and Changes (Business)

1.Mega mergers of financial institutions. Probably involving North American and European banks. American law makers will pass a slew of new acts to allow the Feds to keep all forms of financial institutions under close scrutiny.

2.Chinese manufacturing may not recover from the current slump and this vacuum could be filled by India, Mexico and the former Soviet block countries. In India especially, manufacturing will loose it’s ‘dirty’ tag and become a profession of choice just as IT and services related jobs.

3.Chinese and Indian firms will aggressively buy into ailing western companies at fire-sale prices. Possibility of Indian, Chinese and Middle Eastern investors gaining a foot-hold in Detroit’s automotive industry is quite high.

4.More mergers in the airline industry with Asian flag carriers being the target this time.

5.The birth and widespread use of extremely affordable note-books which will change the industry inside-out. This will most possibly be spearheaded by giants like IBM and Microsoft with India, China and Latin America as the target markets.

6.Mega mergers of auto manufacturers.

7.Reconfiguration of air-line industry.

8.Hostile take-over of Yahoo by Microsoft!

9.Mergers involving the world’s three biggest pharma companies with GSK leading the way.

10. The first economical and viable battery powered mass production car.



Global Trends (Politics and Social)

1.2009 will be defined by Barrack Obama. He will have to manage the unbridled expectations placed on him and the payback that the various interest groups will be clamoring for. The world will begin to see more and more of America’s soft power.

2.Russia will flex its muscles further much to the chagrin of the hawks in Washington. A proxy war of sorts is in the cards. Russia’s dominance in gas supply to Europe will once again become the point of contention.

3.Japan will edge closer to end its pacifist constitution which will anger China. A new schism is quite possible in East Asia.

4.Chinese social revolt will finally come onto international radar screen. But, the Chinese involvement in trying to keep world economy from going into total chaos will win new friends in the capital markets of the world but popular politics will once gain spiral into China-bashing.

5.India’s relation with Pakistan will worsen and a war between these nuclear powers should not be ruled out. Unless of course, America and the international community decides to avoid an all-out war between these two countries by waging a managed war on Pakistan’s terrorist sheltering regions with UN blessings. As always and as what many believe, Pakistan’s semblance of governance exists only because it is anti India. Take that away and we have a full-fledged rogue nuclear nation. However, things may not be rosy for India with its national elections looming. A hung parliament is likely with the Congress and BJP loosing ground to regional parties. Economic and business wise, things should be quite predictable with the Indian Century continuing its progress.

6.Israel will strike Iran’s nuclear facilities while the Palestinians will look away from America as their peace brokers. Barrack Obama and his team will not have the same kind of self-proclaimed importance for the Arab-Israeli peace process. More and more Americans will come to see how their nation's blind support to Israel is undermining America's own international interests. Their voices will get organised this year.

7.The consolidation of institutions of higher education in the form of branding and marketing.

8.Protectionist policies and rhetoric will trump free market and liberalization. China will do all it can to protect its economy for anything less will create an unprecedented social calamity. This shift back to a closed economy will put the Chinese and the Americans on a loggerhead. Europe will gravitate to more conservative policies spearheaded by France. All over the world, proponents of globalization and free market economy will find themselves hard pressed to explain that globalization is the way forward.

9.A major military conflict in Africa with Mugabe playing a key role.

10.China will be less tolerant of North Korea. We may see some real breakthrough with the Hermit Kingdom but not before a huge nuclear scare in the Korean peninsular.

11. A firmer union of South American nations will take place with Brazil and Venezuela roughing it out for moral and political leadership.

12. Tamil Tigers will have the last say in Sri Lanka...at a terrible price. Any arm-chair analysts can see that they let go of their de-facto capital far too easily to government soldiers. This means only one thing : They are regrouping, re-arming and preparing for vengeance.

13. A turbulent year for Thailand (and ASEAN).


Malaysia (Business)

1.Datuk Tony Fernandez will sell down his interests in Air Asia. More active participation from Middle East players and Bumiputera centred institutional fund managers in Air Asia.

2.Labu LCCT project will not take off.

3.The merger of two or more banks to form a mega bank positioned to compete at regional levels.

4.Major changes in the railway industry beginning with KTMB and a possible second operator finally taking shape.

5.The establishment of unit trust funds specifically for Sabah and Sarawak in the likes of the current ASB.

6.Proton will move beyond Mitsubishi to form a business partnership with a European car maker most notably VW or Peugeot. Talks of merger with Perodua may also surface and be taken seriously.

7.Malaysia Airlines will form a ‘partnership’ with SIA.

8.AK will make some major moves in the market with probably institutional investor support. ASTRO may be taken private.


Malaysia (Politics and Social)

1.Will be a defining year for Malaysia. What Datuk Seri Najib Tun Razak says and does immediately after taking over the reigns of the administration will define Malaysia for the next 50 years. He has 2 options : Go back to Mahathirism OR push forward with the reforms set in place by the Abdullah administration. The BN convention slated for early next year will be a watershed in Malaysian politics. The aftermath of this convention may see some BN component parties striking out on their own.

2.The Pakatan Rakyat will be severely tested. But, Perak Penang & Selangor will go further away from BN’s grip.

3.Radical Indian activism will take root.

4.Samy Vellu will not last the year as MIC president.

5.MCA will face its most serious leadership struggle in decades.

6.The return to active politics of certain questionable personalities will weaken UMNO's moral leadership further. The birth of a new generation of Young Turks will define UMNO's future and continued relevence to Malaysian polity.


In summary, I anticipate 2009 to be an exciting year which will define how future generations look at this generation. The world of business will witness a total re engineering with substance finally getting its deserved due over form. Asia-Pacific will still be the focus point of world economy.

Wake up Mother Malaysia!

Mother Malaysia, I love you.

I have a great wish for you come 2009. I want you to wake up and squash the vile viruses that are spreading in your belly.

This nation, build on a promise of equality and social justice is being attacked on all sides by insidious forces which gained their nourishment from you. Now, they seek to destroy you. This nation which promised everyone a place under the sun, is now bleeding silently while a proxy war is raging in every single national institution. This nation which providence has brought together is being shattered by the hammer of parochial thinking.

Mother Malaysia, wake up.

There is great shadow cast over you now. In the name of God, EVERYBODY is carving you into little pieces. In the name of God, man’s supposedly holy institutions are spawning beasts of hatred and suspicions. They are sowing vile and venomous thoughts in your children. Babies come home from school and tell their parents that they hate the Malays (or the Indians or the Chinese)! Parents teach their children that they are somehow superior to others because they eat different or pray different. Teachers….oh the honorable teachers….have forgotten their sacred duties. Their loving eyes are no longer colour blind. Their love is coloured with preferences and biasness. Your schools were supposed to be a bastion of love and unity. Now, they are in shambles trampled by the putrid feet of those whose only desire is to see the continuity of their hegemony.

Mother Malaysia, wake up.

Time is running out. The world is moving so fast. You have blessed your children with great health and intelligence. Now, please bestow upon them with wisdom so that they can see the vanity of their ways. You have to make them see that this is the only home they have and they have to come together and huddle to keep warm in this cold…cold…brutal world. Will they not see that they are destroying you and they are going to end up on the streets of humanity with nothing but despair and regrets?

Mother Malaysia, wake up.

Will you not silence the politicians? Who are these vulgar beasts whose every word and action seem to drive stakes of differences into our hearts? They don't speak for me Mother. They never did and never will. Those who speak for me are those who right now are caring for the aged and diseased. Those who speak for me are those who right now are feeding and cradling a child of not their colour or race. Those who speak for me are those who right now are building this nation in the corporate offices of this land without fear or favour. Those who speak for me are those who view their neighbors as their kin and think not while rushing into the fire to save others or into a crumbling cliff to give another the breath of life. They are the ones who speak for me. Not these despicable vermins of society whose only legitimacy comes every five years I want them to stop speaking so that the beautiful melodious voice of your children can rise above the din of confusing and manipulative words of treachery being spewed in the most august of arenas. I wish for the true intelligence of your children, gained from your blessings no doubt, rise above the howls of these deceitful politicians.

Wake up Mother Malaysia!

Will you not halt the march of those evil minds disguised in robes of spirituality of all colours and shapes. They are all the same. They preach not the love of God but the blind alliance to their man-made institutions with their superficial rules and regulations. They are herding your children into a filed of fiery destruction while all the while chanting the holy names for God. Will you not strike them with retribution before they poison the soul of this nation?

Wake up mother Malaysia.

Will you not breathe the sacrosanct value of balance into this land? Teach your children that there is a time for one self and there is a time for others. There is a time for one’s same kind and there is a time for the good of all. This is a time for the latter. I want my two little girls to live in a haven of fairness, brotherhood and love which this nation has the potential to be. I want them to find the balance to learn their culture and language and remember their ancestry with the desire to protect what is sacred for the longevity of this nation. I want them to look at their friends as an extension of themselves NOT as an inconvenient presence to be tolerated. I want their friends to find that balance too. I want the august institutions of this land teach that balance.

Wake up Mother Malaysia.
For I believe in you as my ancestors did.
Wake up.

The 10 Hottest New Management Gurus

“ Someone who is depressed over loosing his job projects sadness everywhere in his body – the brain’s output of neurotransmitters becomes depleted, hormone levels drop, the sleep cycle is interrupted, neuropeptide receptors on the outer surface of skin cells become distorted, platelet cells in the blood become stickier and more prone to clump, and even tears contain different chemical traces than tears o joy”.


Fortune in (http://money.cnn.com/galleries/2008/fortune/0811/gallery.10_new_gurus.fortune/9.html) has listed ’10 new gurus you should know’. Reading the short biography of each of these 10 ‘gurus’ was like reading a scientology material; a collection of new-age healers who are adapt at using age-old remedies with cutting-edge scientific explanations. Indeed, these 10 individuals are attempting some of the fundamental problems of today’s and tomorrow’s business. The following is a brief description of all 10 of them (not in any particular ranking). You can read more by following the above link.

1.BJ Fogg – Thinks that technology will be the great seducer (persuader).He is a researcher but is viewed as a ‘thinker’ in Silicon Valley
2.Patrick Lencioni – The author of the ‘The Five Dysfunctions of a Team’. I have read this guy’s book! I remember the title and a questionnaire that came with it. Pretty good stuff. Now, thanks to Fortune, I will remember his name too. Anyway, Lencioni says that the ‘internal health’ of a company will have a strong bearing on its success or otherwise.
3.Rakesh Khurana – I suppose there needs to be an Indian in the list to replace the great CK….but then I am assuming he is merely from his name. Khurana says that companies will be at peril if they continue searching for ‘charismatic’ leaders as charisma don’t always translate into success. Carly…you can be at ease now. It was not your fault; it was your charisma. Khurana is a fierce critic of the existing business education's form and substance. He is a tenured professor at Harvard!Go figure.
4.Valerie Casey – Undoubtedly the most good looking in the list (and hence has the honour of gracing the top of this blog entry...yes...yes I can be shallow too!).She believes that designers should be governed by a set of rules a la Kyoto Protocol to ensure sustainable design. An icon of green-design movement. Casey, Malaysia needs you desperately in road-transportation design. By the way….you like red wine?
5.Don Sull – A Serious looking dude who is with the London School of Business. His buzz-word is ‘active inertia’ which is a very LBS way of paraphrasing Einstein’s definition of madness.
6.Joel Poldony – I love this guy and I hope he becomes a popular figure here in Malaysia. Because then, I can pursue my DBA. He says that the current education of business leaders are outdated. So, he revamped Yale’s business education curriculum by taking out previously core subjects like finance. I love him already. Poldony is now with Apple; setting up Apple University.
7. Nouriel Roubini – From his picture he looks like Marlon Brando from a distance with a cotton balls in his mouth. He is called ‘Dr. Doom’ because a couple of years ago he predicted that the US will go into a terrible recession for….well…for the very same reasons it is in recession now.
8. Janine Benyus – A biologist who helps organizations innovate by mimicking nature. Need I say more?
9. Dan Ariely – A professor in behavioral economics. The type of guys who teaches organizations on how to make us spend more than we really want to.
10. Nikko Canner – Helps organizations manage change and make strategic shifts without destroying their core strengths.

There goes the list. You are probably wondering what is the relevance of the quote at the beginning of this entry with the list that I have just shared with you. Well, I would like to add one more individual on to the list – Deepak Chopra. Those were his words from ‘Ageless Body, Timeless Mind’. I believe as management (and people) challenges become more complicated and as the search for more holistic solution gains popularity, philosophers and thinkers like Chopra will be able to assist managers and leaders to view their challenges in entirely new perspectives. So Deepak, as far as I am concerned you are on the list and as syncrodestiny goes, you will read this and know that you have a fan in Malaysia!

Enjoy the last days of 2009.

A Time to Reflect

It’s that time of the season again.

To sit still
and reflect
on the triumphs of the past year
and the failures too.

It is all quite natural
to measure the success
of the flattering quarterly results.
Or lament the miserly sales volume
or the drop in share value.

But that is not the purpose of this reflection.
At a time like this
we need to reflect deeper
because great companies shall not live
on quarterly results alone.

I want to reflect on
the hearts that I touched.
The minds that I opened.
The solutions that I proposed.
The manager that I counseled .
The executive that I empowered.
The company that I assisted.

I hope I did even a little of these.

But not just for the returns on investment.
But more importantly
for the joy of working.
Growing and learning
at our places of work.
If work is worship
I hope in my own little ways
I have prepared the altar
so that others can worship
in peace and gladness of heart.
And contribute all
that they are able to and blessed with.

For above all I thank the Universe
for this blessing
of doing what I care
and love.

I thank my company.
I pray that I am worthy of the vision and values
of those who lead me.
I hope that I will always give more
than what I receive.

For that is my worship.

Entrepreneurial VS Managerial : A Clash of Skill Set, Mind Set and Tool Set

I have seen it so many times before. This time it cut too close to home. A very dear friend is the latest casualty in the endless clash between entrepreneurial business owner-CEOs and their professional managers.

Entrepreneurs are a special breed. They have the drive, focus and limitless energy to carve something out of nothing. They are indeed the engines of a capitalist economy. Entrepreneurs do not fear failure, they do things at great speed and confidence which at times may border on arrogance. They despise tardiness, pessimism, nay-sayers and the dumb-witted. They see opportunities where others see walls and they become lucky while others hope to get lucky. They don't suffer fools gladly.

With these characteristics and attitude towards life and work, entrepreneurs become successful at what they set their sights on. But, these very same values and personal characteristics that makes them so successful are also the very same things that will derail them later as the businesses grow.

An entrepreneur, lets say in the business of prawn farming, who starts a farm in Kuala Kangsar may well succeed in his endeavor with his sheer persistence and drive for success. As he is omnipresent at the farm, he is able to ensure his vision is carried out to the precise execution to his liking. He can get his hands dirty and he can ‘interfere’ in his employees job functions and take immediate corrective actions if the situation warrants. He is able to (and by right)make all important decisions pertaining to the daily operation of the business. He and he alone is the face of the business .He becomes the business.

Now, imagine that this entrepreneur enjoys great success in his prawn farming in and decides to establish 2 other farms; one in Tawau and another in Sibu. He would of course appoint a ‘manager’ for each of these new farms as he will not be able to be at 3 places at one time (although he may very well try!). Also imagine that, the 2managers that he has recruited are well qualified and are highly capable to manage these farms. The entrepreneur, in his usual driven-communication style may even have painted a very attractive picture of the critical roles these two managers are going to play in realizing his vision in making the company number one in prawn farming in Asia. He insists to his two managers that they take ownership of the farms and make it their business. His passion and drive excites these two managers and they come on board with great hope and confidence.

A few years down the road, the business grows and the company expands and prospers. But, the managers in each of the farms (by now totaling 4) increasingly feel sidestepped by the entrepreneur. Despite being told that they are to take ownership of the farm, these managers find very little to take ownership of as all decisions are either made by the entrepreneur or needs to be bounced off him. Even trivial matters like staff year-end party or who gets what and when need to be referred to the entrepreneur. Needless to say that over time these managers start to feel like office boys who take orders and has very little control over their own employees. Now, remember that these are all highly qualified and capable managers. Soon they loose passion for the business and they don't feel that they are able to inject their own DNA into the business. Being proud of their abilities and their sincere hope to leave behind a legacy which to at least a little degree, coloured by them they begin to loose hope that things will change. They stop thinking and do the bare minimum. It is not long before other opportunities come knocking and they go for it leaving behind a dumbstruck entrepreneur who is so disillusioned by the ‘disloyalty and un-gratefulness’ of these managers. He feels so angry at them as despite having them as managers at each of the farm, he has always been there to make sure that everything goes smoothly. In fact he now feels that they are simply ungrateful for not feeling thankful for all that he has done for them. Didn’t he make it so easy for them? Didn't he take the trouble to lay out the precise plans how they can become successful managers? Didn't he always…always…ensure that they run by him all their operational activities which ensured that no major fatal business errors are made? Why?

Why indeed!

The entrepreneur failed to metamorphose into a business leader even after bringing on board professional managers who were supposedly tasked to run the business for him. He could not stop the urge to micro manage. He just couldn't help himself from having to know every little detail that happens in each of the farm. He needed to be in the thick of the action and always on top of things. In that driven state he committed a grave error. An error of observation.

He failed to see how distant and disinterested his managers have become. He failed to see how much of their discretionary efforts were not directed towards the company but for other pursuits. Most critically, he failed to see how disengaged and disempowered he has made them into. He killed their initiatives by trying to inject his entrepreneurial spirit into a business that has transformed from a one-man show into a full-fledged corporate organization. He didn't quite observe that he is no longer the business. The business has become larger than himself and he needs the full and complete contribution from and participation of others.

My friend is a professional manager with a great sense of ownership for what he does. He is a passionate people person with a great sense of fairness. As much as I am worried for his next career move (which I am sure to assist in any way I can), I am glad he the made this decision. He needs to reignite his passion for his chosen vocation and it is time he embarked on a career novation.

Good luck to you RN.
Merry Christmas to all.

People Management During Downturns

I have written on this subject before but under the circumstances it may have more relevance now. So here I am in my favorite Starbucks (because it is ‘attached’ to a Borders) sipping my expensive coffee trying to make sense of it all. I am well cognizant of the fact that I may have to cut down on Starbucks in the new year.

If the Sunday papers are to be believed, Western Digital has confirmed that it will be shutting down it's plant in Sarawak and will lay-off its entire 1500-strong workforce there. Many other manufacturers are either scaling down production or have already begun their VSS exercise. A particular safety-box manufacturer I know has entirely stopped over-time pay. A Japanese electronics manufacturer has instituted reduced working-hours. Rumours have it that Sony will be laying-off more than 1000 workers next year if the current downturn shows no signs of easing. The list goes on.

Then of course we have the global automakers either going around asking for financial bail-out or announcing a steady stream financial warnings. Thrown into this is a financial quagmire involving scandals, malpractices and down-right idiotic decisions. It all points to a massive re-correction in the global economic system. And, there will be casualties. Who? Your average wage earners!

If you are part of your organization's HR team, life could be pretty tough. You are probably feeling that you are trapped between the devil and the deep blue sea. You are right! I hope the following tips will help you through and ease your burden a little.

The first thing all people managers have to accept is that; it is nothing personal. When your employees vent their frustrations at you, it is a cry for help. Be there. Listen to them. Show empathy. When your organization decides to ‘right-size’; it is a business decision. When entire business units are shut down; it is a necessary painful decision.

Next, don't say never.....you may end up looking like a liar. The fact is HR is not always privy to critical decision making process . Often times, HR only implements decisions made elsewhere. In the case of Western Digital for example, its local HR team was told about the plant closure by their US bosses only a few days before the news broke to the press (as was reported in the press). So, if your people do ask you whether there will be any such thing happening in your organization; say that to the best of your knowledge no such thing seems to be in the pipeline. However, it is good to be prepared as the economic down-turn is indeed upon us.

However, if you were informed and in the know that a separation scheme is in the pipe-line, you are duty bound to protect the confidentiality of the matter as per your leaders’ instructions. In this instance, you have no choice but to plead ignorance if your employees enquire about it.

Now, if your organization is currently considering certain cost-containment measures in the form of work-force downsizing, the best thing you can do is to advise your leaders that it will be prudent to engage experts in the area of career transition and work-force outplacement management. Let’s face it, announcing work-force reduction is not easy to do and managing the after-effects of such an announcement is usually beyond the skill sets of most managers and heads of department. Get help and guidance from those who have helped countless organizations manage this in a more efficient and humane manner. Don’t allow the pain and hurt which is entirely avoidable from becoming a festering wound that drags the company down for years to come.

It is your responsibility as a HR professional to pressure the management to provide all possible help and assistance to those who have been ear-marked to leave the organization. This means, they must be provided with career management and career transition services so that they are able to transit out of the organization by making informed decisions. This will engender a feel-good factor within those who are separating from the organization. More importantly, and this is the real ROI from such outplacement services; those who are going to continue to be employed in the organization will have the confidence that they are working for a responsible and caring employer. This, more than anything else will ensure the quick rebound for the organization immediately after a work-force reduction has taken place. Let me also put a caveat here that such outplacement services should be provided to ALL levels of employees. The experts in this area will advise you on how best to go about it.

If you are indeed the key contact point for employees during such an exercise, I strongly recommend that you keep your office doors (and communication lines) open. As the announcement has already been made, employees will have all sorts of questions and queries. They will hear countless stories and half-truths. They will be closely watching how the company is treating their colleagues who are separating. They may not understand the reasons for these or they may not comprehend why the company is doing what it is doing. Some of the separating employees may also plant extremely negative and destructive thoughts and fears which need to be managed professionally. You can’t do this if your doors are closed!.

Whether your organization has already announced a separation scheme or is rumored to be heading that way, the following would be fail-safe HR practices to be adhered to even if some of it sounds like things you have to do anyway; because in truth they are:

1. Show respect. Show respect for those who are leaving the organization as they have all contributed in their own ways. Show respect for people’s fears and worries. Don’t make light of your employees fears as they are genuine and needs to be addressed.
2. Go beyond work. You need to relate to separating employees as a human being. This means you have to relate to them from the perspective of a working man/woman with families to support, children to educate, ageing parents to look after and fragile egos and self confidence that needs rebuilding.
3. Don’t be too apologetic. As much as an employment separation always hurts, it is after all a strategic decision any business has the prerogative to make if the situations warrants. I have seen many times how a people friendly HR professional often crosses the boundary of being apologetic to laying the blame on the company without even realizing it!
4. This will be the best time to practice ‘management by walking around’. Take the trouble to be as near and as accessible as possible to your employees both for those who are separating and those who are staying behind. Listen to them. Respond quickly and firmly to unfounded and/or negative rumours.
5. Take the lead. I find that many HR professionals themselves withdraw into a shell of self-pity and hopelessness when a separation scheme is announced. As I said earlier, it is true that often times HR only implements decisions and is not privy to the decision making BUT that doesn’t mean that the situation is all that hopeless for a HR professional to play a meaningful role. Take charge of the people. Go to the management with questions that you are unable to answer. Identify those who need special attention or observation. Suggest ways how business discontinuity can be minimized via the right people management strategies.

Wishing you all the very best in these trying times. For those of you who know me...well you know that my lines are open 24/7.

Saving (Publicly) the Detroit Three

The million dollar question (or shall I say the multi-billion dollar question) that needs to be answered now is should the American government bail-out the Big Three Detroit automobile companies? Ford, GM and Chrysler have asked for American tax-payers’ monies to help them through these difficult times. At one point in their retracted negotiations with the American Senate and Congress they were asking in excess of US$30 billion in aid! Mark Zandi, the economist, predicts that the total rescue package could be up to US$125 billion! Many feel that the automakers will in the end be making 4 trips to Washington with each trip costing tax-payers close to US$30 billion.

My take is this : These 3 behemoths need to be saved but before I put forth my argument in support of them, allow me first to categorically say that I am also not fooled by their arguments to tap into government largesse. I suspect many other observers will say the same.

Firstly, these companies’ troubles did not begin with the sub-prime crisis or during this latest round of economic downturn. They have been going down-hill this past one decade and they didn't do a damn thing about it. Actually they did quite a few things…but for all the wrong reasons. GM sells close to about a million vehicles per year in China alone; but that don't seem to translate into anything more beneficial to its overall financial health. They have been loosing market share to their Japanese competitors for years. Their products were continuously lambasted by consumers for their lack of quality and innovation. They produce petrol guzzling monsters in an age where discerning consumers are desperate for fuel-efficient and environmentally friendly cars. On top of that these car makers had so many models in any particular range that they began to cannibalize each other. Till today, I wonder why is that Suzuki had the foresight to set up base in India and wait for the country to grow and reap the benefits. Why didn’t the Big Three think of that? With so much Indian connections in their skilled workforce, the Americans could have very easily leveraged on this to venture into the Indian market. They didn’t but the Japanese and Koreans have done so. This is a prime example of how, like many other too-big-to-fail companies, these car makers still think like their country-men in the deep south : That the world revolves around America! Well, it doesn't. American manufacturers can’t depend ONLY on their domestic markets AND they have to open their markets to others. That was what they preached to the world – Open market, un-hindered capitalism, etc. Can we say that the rest of the world has learned the lessons too well while America it self forgot what it was preaching? But I digress…

Secondly, by the American government pumping in billions of tax payer monies into their coffers, they are not going to be doing any better three years from now. While this may help them to avoid from filing for bankruptcy, the longer term viability of these companies will still be in doubt. They need to make some fundamental changes to the way they build and sell cars. In fact, they have to revamp their business model. The Big 3 is probably too big for America. They may have to seriously consider a merger between them. Why acquire/merge with a German car maker when you have enough merger possibilities on your own shores?

Here is why I think the Big Three should be saved. If they go under, they will bring many others with them; particularly their serpentine connections of supplier companies. This is a fear already voiced by their Japanese competitors! The thing about the car industry is that the small side-view mirror maker in Alabama or Shah Alam is the same guy who makes for two or three other car makers. So, if one as big as Ford or GM collapses, he will have to wind-up and create a big mess for his other clients. If Toyota faces problems in the US, which is already facing the lowest car sales in 26 years, the ripple effect can be felt all the way to Thailand and other parts of South East Asia where it has considerable presence. The world is connected remember? Already the Big Three Japanese car makers, Toyota, Honda and Nissan has drastically lowered their earning projections. Nissan has in fact been reducing its production output since 2007. More than the American companies, their Japanese counterparts are what we should worry about in this part of the world. If the Japanese, as an extension of the problems they face in the USA vis a vis their close ‘connections’ to the Big Three there face the prospect of further reduction in their investment and production, this part of the world will suffer the greatest. I shudder to think the impact this will have on Thailand for example. Although, I suspect it may be a blessing in disguise for indigenous car companies in the region, especially Proton. But then again, this may be short lived.

But, I am still a little puzzled about how these companies are going to manage government interventions. Ford, for example, is still a largely family owned company while Chrysler is owned by an equity firm (if I am not wrong). How accepting public money is going to change the ownership of these companies still remains to be seen. Surely the American government is not going to just give billions away on a silver platter?

But then…...in America…..any thing is possible.