Share This

Showing posts with label Management. Show all posts
Showing posts with label Management. Show all posts

Saturday, September 13, 2014

The best leaders are learners


One year ago, at a youth camp, a student who had been put in charge of his group confided in me that leading his team members wasn’t going as well as he had thought it would. “I’m just not cut out to be a leader,” he said, as he related to me what he thought a leader should have, which he didn’t: humour, confidence, wisdom and courage.

My reply to him, as one still understanding the ropes of what it truly means to lead was, “all these can be learnt, if you put your heart to it”.

It is said that there are approximately 50,000 books on leadership that are published annually – and this number may well be a conservative estimate – but if there is one indication that there is no final “destination” in this journey of becoming a leader, it is the countless number of resources that teach us how to better develop our awareness and management of ourselves and others.

Leadership is a relational endeavour; one cannot claim to be a leader without being able to inspire an action or a reaction in others. And because relationships are complex, one can only lead to the extent that he or she learns.

On the surface, it is painfully obvious that learning is imperative for any human enterprise – but I’d argue that in the long run, learning qualifies you to lead more than anything else (beyond promotions, positions, placement and power).

Here are three reasons why:

1 Learning equalises the years

How often have you heard the Chinese adage (often spoken by the elderly to the young), “I eat more salt than you eat rice”?

What is it about being “older” that makes one a wiser and better decision-maker? I’m convinced that the difference is not a matter of “years”, but a matter of “experience”.

We learn from our experiences, and our past outcomes that resulted in both positive and negative actions inform us as we negotiate between present choices.

But if experiences make us wiser, how do we attain more “experience”? Is “experience” purely a byproduct of the passing years, or can we, in the words of Sir Isaac Newton, see further into the future “by standing on the shoulders of giants”?

When we capitalise on the learnings and lessons of others and apply them in our lives, we are able to short-circuit the common bind of “years equals to experience” and accelerate our growth without wasting the time others have wasted.

Great leaders often ask themselves, “How can I avoid making the same mistakes, or how can I replicate others’ successes and take them further?”

2 Learning keeps you humble

Learning and humility feed off each other. On the other hand, the antithesis of humility, which is pride, has the sinister ability to deceive anyone into believing that he or she has “arrived”, that there is no need to adapt or change further, because he or she is superior and above reproach.

In contrast, great leaders are often the most humble people who are secure in themselves and do not see the need to put others down to elevate themselves.

John F. Kennedy once said “Leadership and learning are indispensable to each other”.

Interestingly, most US Presidents were avid readers who invested much of their time in learning, despite their busy schedules.

It is said that Theodore Roosevelt read two books a day, while Abraham Lincoln, who had only one year of formal education, attributed his successful political career to his habit of reading.

A strong learning posture allows you to see from different perspectives, live in the experiences of others, and most importantly, empathise with other points-of-view.

It is only when a person is an avid learner that he or she is continually challenged in his or her current views, and thus able to grow in convictions. It is only when a cup is empty, that it can be filled.

Maintaining humility allows us to be intellectually curious – and curiosity always precedes discovery and creativity.

3 Learning enables you to give

Somewhere during my college years, an epiphany occurred to me: How much can I learn and grow, if I were to dedicate all my transit and waiting moments to learning something new?

In my frustration of waiting and chasing for buses to get to college, I found a treasure chest.

I had realised that an average Kuala Lumpur/Klang Valley resident would spend approximately 10 to 15 hours per week travelling, either by inching through heavy traffic or waiting at bus stops and light rail transit (LRT) stations, and what a waste of time it would be if all that time was given to staring into space or letting one’s thoughts run idle.

I then made a concrete decision to listen to podcasts, audio books (when I would be driving) or to read (when I was waiting for the bus or LRT), in order to redeem that precious time.

I have since listened to over 700 hours of podcasts on topics related to public speaking, general knowledge, story-telling, leadership, faith and personal development.

My greatest learning moments are no longer in the classroom, but in my car, when I am alone and can learn something new.

During the course of the last two years, as a teacher in a high-needs school and a church leader, these moments of learning and reflection allowed me to pass on what I learnt to my students and congregation.

Those opportunities gave me great pleasure, as I was communicating to others what I had learnt and internalised for myself. I never felt “burnt out” because the stream of learning was always flowing.

Leadership may have many faces, but all leaders have the same outstretched hand of giving. And we can only give from what we have learnt. The good news is that leadership can be learnt – if we put our hearts to it.

Contributed by Abel Cheah

Abel Cheah is associate manager in the Talent Acquisition team at Teach For Malaysia. He believes that leadership is something that is nurtured and cultivated. If you are interested in listening to podcasts, he highly recommends Umano (an app that narrates articles). He believes that the best leaders are great lovers of learning. You can get in touch with him at editor@leaderonomics.com

Friday, September 5, 2014

Setting the right CEO for Malaysia Airlines (MAS)

Essentially, there is little time to shape up MAS before its competitors eat into its share of business. Khazanah should cast its net wider beyond the GLC fraternity and also look globally.

Don't compromise on setting things right for MAS. The airline needs a true blue aviation expert as new CEO

MALAYSIA Airlines (MAS) needs a true blue aviation expert as its new chief executive officer (CEO), and that is something Khazanah Nasional Bhd has to come to terms with.

The time to test the waters by hiring non-airline experts is over.

MAS is like an injured entity that needs to be operated on fast.

The national carrier needs a leader who knows the trade given the complexities of the airline business – someone who can differentiate between a full-service airline and low-cost operation.

The person must not be cajoled into believing that selling seats at the expense of yields is the best business strategy, and at the same time get the workforce to rally behind him to achieve success.

This is critical if Khazanah wants to see returns from its RM6bil investment that will go into saving MAS.

Bear in mind that Khazanah has not recovered the RM7bil investment it had already poured into the airline.

No doubt Khazanah does not want to set a new record for investing RM13bil in MAS without getting anything in return.

To recap, Khazanah had announced a 12-point plan to revive MAS. It will take it private, delist it, transfer the airline into a new company and relist it later.

It will cut 6,000 jobs, focus on regional profitable routes, and hopefully pay market prices for supplies.

To do all that and return to profit in 2017, it needs a new man at the top, someone with impeccable abilities and knowledge of the industry. The obvious choice will be someone from within the company, if there is one.

It will be hard to believe that Khazanah cannot find one person to run the show from the nearly 20,000 employees in MAS.

If that is the case, either the airline’s succession planning is non-existent or absolutely hopeless.

Airlines will normally employ from within the company or from other airlines to fill the top post.

In the case of Singapore Airlines (SIA), it has often been a home-grown candidate that has worked for 20 to 30 years with the airline.

MAS and SIA were formed from the same parent company decades ago.

SIA has become one of the best airlines globally although it grapples to keep its feet on the ground.

The current SIA CEO Goh Choon Phong came on board in 1990, worked 20 years, and became CEO in 2010.

His predecessor, Chew Choon Seng, joined SIA in 1972, and after 31 years became the CEO.

Chew took over from Malaysia-born Dr Cheong Choong Kong. Cheong was a mathematics lecturer in Universiti Malaya before he joined SIA in 1974.

After 29 years with the SIA, he was appointed CEO.

Unlike MAS, SIA has an unbroken record of profitability even through turbulent economic times.

Qantas head Alan Joyce is also a true aviation man, after his stints at Jetstar, Ansett Australia and Aer Lingus.

If no one from MAS can fit the bill, then obviously Khazanah will have to search from within the government-linked company (GLC) fraternity.

But should Khazanah make that compromise again?

Khazanah is said to be talking to several local and foreign candidates. Datuk Seri Shazally Ramly’s name has been mentioned several times although no deal has been hammered out yet.

Essentially, there is little time to shape up MAS before its competitors eat into its share of business. Khazanah should cast its net wider beyond the GLC fraternity and also look globally.

If Maxis Bhd can have Morten Lundal in its payroll, surely MAS can find someone prominent in the airline industry as its CEO, as long as it is willing to make that compromise.

Rob Fyfe, the former Air New Zealand CEO, is someone who has a proven track record in the aviation industry as are some people in SIA and even Cathay Pacific.

Khazanah must get the most capable talent to help MAS recover and for the agency to recoup its investments. Hopefully this will be the last revamp for MAS as nobody can stomach yet another restructuring three years down the road.

Contributed by BK Sidhu Reflections, The Star/Asia News Network

Related posts:

Malaysia Airlines to cut 6,000 staff, new company to be formed 

  Are the problems of Malaysia Airlines, symptomatic in other government-linked companies?. 

Malaysia is poised to escape the middle-income trap, but also ready to fall back into it. Normally the middle-income trap refers to count...

Saturday, August 16, 2014

Are the problems of Malaysia Airlines, symptomatic in other government-linked companies?


THE events of MH370 and MH17 have soured the operations of Malaysia Airlines (MAS), where the extent of the damage from these events on its financials will be more accurately shown when the airline reports its quarterly figures next week.

While these tragedies have led to MAS’ major shareholder, Khazanah Nasional Bhd, offering to not only take the company private but also undertake what appears to be an exhaustive overhaul of the airline’s operations, the problems at MAS have been simmering for a long time now.

The airline has been losing money for some time, and previous turnaround plans, in hindsight, were akin to applying bandages when major surgery was needed. Previous turnaround plans might have just delayed what needs to be done now.

But all gloves are off with the upcoming overhaul when it comes to salvaging MAS. Political will appears to be there, judging from comments made by the Prime Minister and the airline will undergo a big transformation on how it operates.

Lots of public funds will be spent to make things right at MAS, and it will start with the RM1.4bil takeover of the airline. The overhaul of MAS should be more than just cosmetic or quick fixes.

While the airline’s revenue will surely slump, MAS also has to deal with its cost. As it stands, experts have pointed out that the size of its cost structure is one that supports a far larger network than what MAS currently operates.

Tackling costs won’t be easy also, given that it is a government-linked company (GLC) with social obligations. In fact, MAS, like its other GLC brethren, has commitments that most private companies just don’t have.

Will the overhaul of MAS take into account just how far it needs to go to remove a certain portion of such obligations, and if it is happening in MAS, are other GLCs too shouldering the same kind of burden as MAS is?

It has been long suspected that the airline has been losing lots of money due to leakages and some have even alluded to political interests having their fingers in the pie.

Khazanah should undertake a thorough review of the supply chain, and conduct forensic accounting if needed to ensure corruption is weeded out of the company. MAS needs to make sure that the services and supplies bought are at market rates and of a fair value.

For Khazanah, it needs to revisit its GLC transformation programme and see whether it has been as effective as what the market expected it to be. There has been a series of colourful books and manuals issued, and among them, the red book. Just how far have the initiatives of the red book, which deal with procurement, been successful in reducing costs?

But the need to ensure support for its social obligations can be tough on a GLC. For one, if the contracts given or services and goods acquired are inflated beyond an acceptable amount, then it will just balloon cost. Social obligations that relate to the need for support to help companies grow in scale is understandable, but not handouts.

Even Petroliam Nasional Bhd president and chief executive officer Tan Sri Shamsul Azhar Abbas has inferred that there is pressure from Government interference and the need to back vendors that charge quite a bit above market prices.

If such pressure is existent in the national oil company that is different from other GLCs, then one can hypothesise that such pressure is prevalent among GLCs.

There needs to be a balance between social obligations and market value. GLCs cannot go on supporting programmes at inflated costs if the companies they are supporting have not shown improvements or are detrimental to their own well-being. This is because doing so will have a telling effect on the performance of the companies.

Should its costs become inflated as a result of such support, then there could be implications on the performance of the GLCs. For one, investors will make that distinction and attach a lower market multiple for GLC companies compared with its private-sector peers. Some will say that it is already being seen in some GLCs.


By: JAGDEV SINGH SIDHU The Star/Asia News Network

Related posts:

Malaysia is poised to escape the middle-income trap, but also ready to fall back into it. Normally the middle-income trap refers to count...

Photo taken on July 17, 2014 shows the debris at the crash site of a passenger plane near the village of Grabovo, Ukraine. A Malaysian...

Boeing has patent for autopilot tech PETALING JAYA: When it was first speculated that Flight MH370 could have been hijac...
Related Articles:

Wednesday, April 16, 2014

Malaysia paying the price for flight MH370 !

Flight MH370: Paying The Price Of 6 Decades Of Nepotism, Racism, Rampant Corruption And Incompetence

On January 23, 2008 a very peculiar thing happened. Commercial airspace at one of the world's busiest airports was shut down for over 50 minutes. On that day, an aircraft without an approved flight plan entered Singapore's airspace. Immediately, the Republic of Singapore Air Force dispatched a pair of F-16D fighter jets to intercept the aircraft and escorted it to land at Singapore Changi Airport. Upon landing, airport police immediately surrounded the plane.

"At 6.42pm (2142 AEDT), two Republic of Singapore Air Force (RSAF) F-16 fighters were scrambled to intercept a civilian aircraft, a Cessna 208, which was heading towards Singapore airspace without an approved flight plan,'' the ministry's director of public affairs, Colonel Darius Lim, said in a statement. "The aircraft was escorted to land at Singapore Changi Airport."

The above incident highlights the standard operating protocol an Air Force, Civil Aviation Authority and Local Police Force needs to follow in the event of an unidentified aircraft entering it's airspace without an approved flight plan.

However amidst this hoo-ha, there was one small detail worth noting. The plane took off from Koh Samui, Thailand. And running the full length between Thailand and Singapore is the land mass of Peninsular Malaysia.

In essence, this means that the Department of Civil Aviation of Malaysia and the Royal Malaysian Air Force had allowed an unknown aircraft to invade over 131 thousand square km of sovereign Malaysian territory and despite this occurring over a period of 3 hours, did not lift a finger to respond.

This incident highlighted a huge security flaw in Malaysia's Air Defence umbrella. One that if it had patched during any of the subsequent 6 years that followed, would have prevented a bigger tragedy that came with greater embarrassment, scrutiny and loss.

6 years later on 8 March 2014, Malaysian Airlines flight MH370 departed Kuala Lumpur International Airport for Beijing. It never landed at its intended destination. Instead, less than an hour after take-off, the transponder was turned off and 3 sets of military radars tracked the plane flying past Penang and across the breadth of Malaysia from the Gulf of Thailand towards the Indian Ocean.

Unlike the Cessna airplane in the earlier example which was intercepted by the RSAF, 3 sets of people manning Malaysia's military radars never sounded any alarms. The RMAF never dispatched any fighter jets on standby and the Department of Civil Aviation of Malaysia never shut down Malaysian airspace when a rogue plane very much larger than a Cessna aircraft flew across it's airspace.

Suffice to say, had the Department of Civil Aviation of Malaysia or the RMAF been doing their job properly as exemplified by the example given above, we would not have gone 9 days and counting into a search for a missing and possibly hijacked plane.

Investigators may have recently concluded that the plane had its transponders deliberately turned off and its flight plan deliberately altered but it is the greater observing public who have the biggest conclusion of all; that Malaysian leadership is sorely incompetent when it comes to handling a crisis. In this respect, Malaysia has much to learn from its Southern neighbour. Had the supposed hijackers targeted a plane flying through a more efficient jurisdiction, the outcome would have been very different today.

  Malaysia Flip Flop

Related:    

The Day When 2 Austrians Shut Down Singapore's Airspace for 50 Minutes.

Relate posts:



     

    Wednesday, January 1, 2014

    Time to change!


    .
    LADIES and gentlemen, we are now moments away from 2014. If you are an employee, most of you will be looking forward to this time of the year as it may mean year-end holidays and bonuses.

    Some of you may also be busy making your New Year resolutions. But if you are a business owner, you may be busy coming up with your business plan for next year.

    Planning for the year ahead requires a bit of both reflecting on the past and looking forward to the future. Apart from my own annual business plan, as a marketing consultant, I also help some of my clients come up with their marketing plans for the year ahead, or elements of the plan.

    The first order of the day is to narrow down the objectives and then come up with goals and plans to achieve those goals.

    Naturally, the goals and objectives are always positive and geared towards growth. But any marketer or business owner will tell you, the marketing plan is always one of the plans that are changed the most throughout the year. Depending on what the company is offering and which market they operate in, for some companies, the marketing plan can be so fluid and dynamic that it can be changed as frequently as once a month or week.

    Marketers have it tough and I often tell people who aspire to be marketing managers or want to be hired as one that if you are the type of person who likes routine work or following a set of rules, you are not suitable to be a marketer. People who are successful marketers are not just required to be able to change quickly when it comes to their marketing activities but also know how to run faster than the pack. Basically you cannot provide strategic marketing direction without knowing what is ahead or at least having the foresight to understand what will take place.

    But change is something not everyone can embrace with open arms, especially for entrepreneurs. It always feels safe to stick to the same business model or plan every year. They think that as long as that plan is not “killing” the business, why not? For example, I am always amazed by one of my friends who is still using a very old handphone (I think it is eight years old) while I have already changed three phones in the span of that period.

    Time for change: Letting go of old tools can lead to progress.
    He can afford a new one, but stubbornly refuses to get one. Two years ago, his nephew had enough of his stubbornness and bought him a touchscreen smartphone. When I met this friend again recently, I saw he was still using the old phone. I asked about the new phone and he said it was sitting in his drawer as he found it just too troublesome to transfer all his contact details from the old phone to the new one. He was comfortable with the functions of the old one and did not feel like learning the functions of the new phone.

    He does not realise just how much he is missing out on.

    While there are few people like my friend, I think sometimes entrepreneurs can be like that when it comes to things they need to change in their business. It could be a non-performing employee whom they know they should have let go a long time ago, but just did not want to for fear of rocking the boat.

    So they end up paying for non-performance year in and year out, to the detriment of the business.

    It could be products they need to retire from their offerings or offices or outlets they need to relocate. It could also be about learning new things or new technology and starting from zero again.

    All are hard and uncomfortable decisions especially when change is involved. Change is risky and can be a scary path, but if deep down we know and realise that the change will bring about something better, then we should not be afraid to change. Now is the time.

    Contributed by Jeanisha Wan

    Jeanisha doesn’t like last minute changes, but equates the need to change with water that needs to be constantly flowing to be fresh. She is more fearful of having her business end up like the water in the Dead Sea. Talk to her at talk2jeanisha@gmail.com. Happy New Year!

    Related articles:

    1.The finish line
    2.The little things count
    3.Being good matters
    4.Standing on the shoulders of giants
    5.Don't give up in the face of failure
    6.Purpose-driven work
    8.Focusing on the positives can do wonders
    9.Give unconditionally
    10.Dreams do come true
    11.Eagerness to win customers makes people forget how to keep existing ones
    12.Staying the course
    13.Improvement through observation
    14.Make your brank stick
    15.Hard work equates to good work?
    16.Great surprises
    17.The power of surprise
    18.A bold lesson

    Monday, December 30, 2013

    Five steps to business success for 2014

    Preparations: A well-crafted business plan is like a roadmap for the year.

     How to develop a business plan for the new year

    Here we are at the end of another year. For many business owners, it’s the right time to map out a strategic plan for next year. A well-crafted business plan is your roadmap to success and an easy way to stay on task for future growth, projected income and increased profits. Take one or two days now to develop a plan and you will save time, energy and maybe even a few dollars. Here’s how to develop a business plan for 2014 in five easy steps.

    Set projected income

    The very first thing you need to do when creating a business plan for the year ahead is to decide how much you plan on earning and what specifically you are looking to achieve. Setting these goals is only the first step, because outlining your plan for future months describes how you will get there and is the true blueprint for success.

    Reflect on your current business models and income sources to help you determine your ideal income. If you’re having difficulty, evaluate these factors:

    • ·Do you need to identify a different profile that can spend more?
    • ·Would including a recurring element to your business increase profit?
    • ·Should your pricing be re-evaluated?
    • ·How is your marketing plan? How can you expand it to achieve more?

    Set incremental goals 

    The key to success in creating a business plan is detail and consistency. And every goal needs to be broken down into smaller tasks and objectives to ensure you are reaching your target audience and you have a plan for how to obtain your new income level.

    Even the best plan is useless without milestones and success at reaching large goals comes from knowing how to create smaller, more attainable objectives. Simplify your income goals by this equation: Income per client x number of clients x frequency of clients = income. Clearly defined and manageable objectives- six months, monthly and weekly- will give you the momentum you need to reach difficult milestones while keeping a larger goal in view. Besides, this process gives you a bird’s eye view of exactly what income level needs to be reached within a certain time frame to stay on track for success.

    Map out marketing

    After determining what your income stream should be, it’s time to create a formula for acquiring the clients. The most effective way to reach a target audience and the only way to secure new customers is through marketing. After all, if no one knows you exist, no one will buy your products or services.

    Take a long hard look at your current marketing activities and decide which strategies are effective and can be reused, even expanded, and which should be discarded. The right marketing can bring a steady stream of new clients, as well as build brand loyalty and solidify trust with existing customers.

    Here are the most effective and commonly used platforms for acquiring new clients. Make sure to allocate sufficient time and budget for each:

    • ·Strategic Print Advertisement (Appear in front of your ideal prospects)
    • ·Online Marketing Strategies (Content to educate and entice)
    • ·Media Recognition (Position yourself as the expert authority)
    • ·Social Media (Facebook, Twitter, LinkedIn, Google+)
    • ·Networking and collaborations

    Develop your team

    Now that you have clearly defined, obtainable goals and a strategic marketing plan, it’s time to start thinking about how you are going to make it happen. It’s nearly impossible to achieve all of your goals by yourself and the best plans are always complemented by a strong team. Decide who you need and how they will help you achieve your milestones within your deadline.

    Virtual teams are always an option, and can execute elements of your business plan simultaneously. On the other hand, you can also evaluate a current team or bring in someone new to free up time for you to execute growth campaigns.

    Evaluate expenses 

    Unfortunately, like everything in life — business costs money. However, by carefully evaluating all of your marketing activity and tracking return on investment stringently, you’ll have a better idea of where the money is going and how best it should be spent. Many business owners make the mistake of looking exclusively at gross profits, neglecting net profits. Make certain to record everything and be very clear about profits before taking on any new activities. This disciplined approach will help ensure that your ideal income is indeed profits.

    Crafting an effective business plan is easy with a few good tips and the right information. By defining incremental goals, developing a marketing strategy, building your team and keeping an eye on expenses, you will be more than ready to charge into 2014 with spirited enthusiasm as you watch your business transform.

    Contributed by Pam Siow

    > Pam Siow is the founder of ThinkSpace. A renowned business coach within the region, Pam helps hundreds of business owners and corporations gain true success and profits with her knowledge and real-world experience. Find out more at ThinkSpace.com.my/ Internetbizownersclub.comnow.

    Related articles:

    1. Towards business success
    2. It's all about the profits
    3.In business, think different
    4.Simple steps to sales success
    5.How to hire winners 
    6.Outshine competition
    7.From small to big
    8.Grow your business faster
    9.How to create ‘luck’ in your business

    Tuesday, December 24, 2013

    Transforming the company into a heavyweight, sharing his love

    Tee (left) and Ooi chatting with Mazlin.

    Transforming Daya into a heavyweight

    Contributed by Tee Lin Say

    YOU have to meet Daya Materials Bhd executive vice-chairman Datuk Mazlin Junid in person to understand why he appeals to people at large.

    The first thing you notice is how witty and direct he is. So, no superficial talk on “how your day was” or whether “the coffee tastes okay”.

    Mazlin tells you things as it is, so don’t ask if you aren’t prepared. That, however, is his charm. What you see is really what you get.

    Physically, Mazlin is good looking. Despite the Prada loafers and 7 for all mankind jeans, there is an almost Neanderthal-like quality about him. In the band of brotherhood, Mazlin’s more of your Vin Diesel than an Orlando Bloom.

    He has two great goals in life now. The first is a vision to transform Daya into a heavyweight. He’s aiming for the company to join the billion dollar club over the next three years. (For the nine months to Sept 30, 2013, Daya’s revenue jumped 110% to RM373mil in revenue and net profit increased 26.74% to RM18.9mil)

    The other, is to look like his idol, Australian actor Hugh Jackman.

    He loves the pain that comes with pushing himself to extremes. Dumb bells are his favourite toys. Why, he even celebrated his birthday in the gym with his gym mates.

    “I am 52 now. I have done it all. The cars, the yacht, you name it. What turns me on now is winning contracts for Daya,” says Mazlin resolutely.

    “At the end of the day, a company needs to deliver. We are very focused on creating value and growing the company over the long term. I have huge responsibility to my staff and the people who gave us contracts. We have to deliver based on my vision for the company, Daya is still undervalued, “says Mazlin.

    “You must always take responsibility. It’s not about following your emotions. Whether it’s to your family, the people you work for, your client, or someone you dislike, take responsibility,” he says.

    He adds that with Daya Offshore Construction Sdn Bhd (DOC) going out there to secure contracts from Norway, Daya is in fact going against the grain of typical Malaysian oil and gas companies.

    When asked what Malaysia’s problems are, he responds: “If there is a hard truth Malaysian companies must learn, it is to stop the habit of political patronage,”

    Not surprising, Daya has been one of Bursa Malaysia’s outperformers this year. On a year-to-date basis, the stock is up 116% to 41 sen as of Thursday.

    While Daya started off in 1994 as a specialised polymer company, it has since expanded substantially into the oil and gas (O&G) business. Daya was initially more focused on the downstream O&G segment, where it was already established as a leader particularly in chemical services. It chugged along, growing organically until this year, which was clearly the inflection point for Daya.

    This started with the formation of DOC last September, of which Mazlin appointed Mark Midgley CEO.

    Almost immediately DOC began delivering results.

    The arrival of vessels Siem Daya 1 and Siem Daya 2 literally created waves. DOC secured two major contracts in less than six months from Norwegian firm Technip Norge AS for charter and subsea contracts worth RM440mil and RM100mil-RM176mil respectively.

    The latest research house to give its mark of approval to Daya’s efforts is RHB Research, which has a 48-sen target price. DOC is already contributing almost 50% to Daya’s topline.

    “Suddenly Nathan (Daya’s MD Nathan Tham) was busy answering calls from some 40 fund managers. People wanted our shares and started saying Daya was the smallest O&G stock and with the most growth. I guess this is what happens when earnings have been growing organically over the last five years,” laughs Mazlin.

    Sharing his love

    Contributed by Xandria Ooi

    FASCINATION is what I’m feeling when talking to Datuk Mazlin Junid, a man who doesn’t mince his words, yet laughs so often you know he doesn’t take himself seriously.

    Work, however, is a different matter.

    When you’re a business leader, he says, you don’t have to be liked. “If you want to be popular, you can’t get things done.”

    We’re sitting in the quiet guest lounge of Daya Materials and Mazlin is extremely casual and candid. It feels like a chat, not an interview.

    He explains to me how he doesn’t hesitate to fire people, even at the directorial level, because they either weren’t performing or did something that conflicted with the interests of the company.

    “And he could be a friend,” he says matter-of-factly. “Friendship is secondary, the company always comes first. All that matters is our bottom line.”

    I can’t let it go, not quite believing that a man as affable as he is, truly doesn’t care what his employees think of him. Don’t people who like and respect their bosses look forward to going to work and having the motivation to work harder?

    “Well, I like them to like their jobs.”

    Would you be okay if your successor in the future is a woman?

    “Oh certainly, I’m not gender specific. I’d like to have more female board members but right now, there’s only a few. Malaysia’s industry has always been a bit chauvinistic with few women leaders, except maybe banking.”

    He mentions Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz as a woman he feels is a brilliant leader, alongside Tan Sri Rafidah Aziz and Datuk Farah Khan.

    “Women,” he says, “are more passionate. There are very few female business leaders who can be as cold-hearted as men. People like me, I’m very cold-hearted.”

    In what way? “Well, when I take more than one wife, for example, I’m very cold-hearted about it.”

    But that’s not business, I protest, laughing.

    But since he brings up his wives, I assume I’ve just been given permission to delve into the topic of his rather large family, with four wives and now three, after a recent divorce.

    People ask him, all the time, why he chose to have so many wives.

    “And I tell them ... because I could. Although now, I wish I hadn’t.”

    Why? I’m fascinated. This is, by far, one of the most interesting conversations I’ve had about relationships.

    He makes a noise, somewhere between a grunt and a sigh. “The amount of stress and management! Obviously, all these things that happened, nothing was planned.”

    I raise my eyebrows. What do you mean, nothing was planned? When you propose to a woman, isn’t it planned? I point out.

    He counters that it wasn’t his lifelong ambition to get married multiple times. “Sometimes it was done on a spur of a moment”.

    Are you the kind of man who gets swept away by love and that’s why you propose to women on impulse?

    “That’s a good question,” he muses. “Somebody asked if I know what love means. Until today, I can’t figure it out – what love for a wife is all about. Responsibility, somehow, is stacked right at the top for me.

    Running one household is hardly easy, but to run four (now three) at a time, takes some mighty management skills. Mazlin has it down to a workable, practical schedule that he says keeps everyone happy.

    As he explains it, “Relationships are just like work. I use my work practices at home. There are tasks to be done and I implement the same regime for every household.”

    I listen wide-eyed as he elaborates, describing how he sometimes repeats the same holiday three times with his different wives.

    “No, my wives don’t mix,” he volunteers the information, knowing what I am about to ask just from the look on my face.

    Surely there’s bound to be jealousy?

    “They’re not jealous of each other, but they’re jealous of other women!” he declares and I am reminded of how he can now marry another.

    “Somebody asked me if I’m on a fleet renewal programme,” he jokes. “But no, I have my hands full right now.”

    Tuesday, July 2, 2013

    Doing good well - there's greater impact in helping through informed giving

    TWO weeks ago, I was on a flight back from Singapore. One of the newspapers had a poignant picture of a young boy in tears. I could practically feel him staring at me.

    He had been rescued from a saree embroidery factory in Kathmandu. Child labour in the Kathmandu Valley is extensive and there are up to 80 such factories which employ more than 500 children, mostly below the age of 14, to make those sarees. And the sad part of the story is that many do not want to be rescued.

    The Kathmandu operation was timed to coincide with World Against Child Labour Day which was on June 12. According to the International Labour Organisation, hundreds of millions of girls and boys throughout the world are involved in work that deprives them from receiving adequate education, health, leisure and basic freedoms.

    More than half of these children are exposed to abuse because they work in hazardous environments where slavery, forced labour, illicit activities such as drug trafficking and prostitution, and armed conflict are common.

    The plight of these children weighed heavy on my mind on this short flight back.

    The following week, I was on the road listening to the radio and I learnt that World Refugees Day was on June 20. It is estimated that more than 45 million people worldwide have fled their homes due to conflict, persecution and other abuses.

    In Malaysia, there are over 100,000 registered refugees in Kuala Lumpur alone, and one can imagine the actual figures nationwide, especially those not registered.

    In looking at the two big issues here, we may wonder what we can do to make a difference in the lives of so many people.

    Certainly there are many communities who will benefit from our giving and volunteer efforts – the aged, homeless, abused children and women, addicts, the poor,disabled, orphans, victims of human trafficking, etc to name a few. Then there are the sporadic needs in times of natural disasters.

    And this is where the work of NGOs is significant. Many NGOs come about in response to a specific need and are small and limited in their operations. But there are an estimated 20,000 NGOs that operate globally because the causes they fight for transcend national borders.

    And for the work they do, they need support. Some of these NGOs have a strong global presence and are able to draw funds and resources from many sources.

    An executive from a large company once asked me what worthwhile organisation or group his company can contribute to.

    I pointed them to a community in need of help for social change. They are children in estates who need assistance to enable them to stay in school. I told him that it would be better for him to visit the community in a somewhat remote area and understand their situation and needs.

    The legwork proved to be a deterrent and so the company chose a children’s home in the Klang Valley instead. It was easier to arrange and provided ample photo opportunities for the company’s magazine.

    There are many us who are willing to give and contribute. However, our giving can go further when it is done right.

    For a start, we should go beyond being compassionate and generous, and instead be prepared to do due diligence to determine the deserving causes. This is called “informed giving” and it requires us to hold the organisation accountable so that the funds given are effectively used. It is not just giving, but following up for accountability and performance.

    Sometimes it might be better to channel the funds raised to a reputable foundation to be administered instead of making the contributions direct. When I made this suggestion at a recent fundraising discussion, it was met with some laughter. Why would you give money to another organisation which already has so much money?

    I know of trustees in a charitable foundation who diligently visit the communities they support. They want to see for themselves how the money is spent, whether the classroom has been built, and how the children who received financial aid were doing.

    Just as the executive could not find the time to check out the community I recommended, many of us also do not have the time to do follow-up and accountability.

    So we should consider those organisations which take the work of giving seriously. They are the ones that are managed professionally, with full transparency and accountability.

    Companies and individuals can partner with such organisations which are more efficient and have a proven track record in helping others.

    This is the reason why Warren Buffett gives such generous amounts to the Bill and Melinda Gates Foundation to pass on to the right people. Buffet knows that he should just continue to do what he does best, which is to make a lot of money, rather than rolling up his sleeves to manage the giving directly.

    There are many practices in companies which can be applied to social work to transform lives.

    Like businesses, charitable organisations need the best leaders and people to execute the programmes.

    Many of the issues faced are complex. We need to understand the issues and provide insights on the right solutions to address the root causes of the problems.

    Which is why simply doing good is not enough. We need to move to “doing good well”.

    TAKE ON CHANGE By JOAN HOI

    Joan is inspired and influenced by the book, Doing Good Well. What does (and does not) make sense in the non-profit world by Willie Cheng.

    Related posts:
     Gen Y – they are different, deal with it
     Dressing stature 
     My home, my school  
    Beware of Malaysian Chinese school leavers being lured into dubious degree and diploma programs ! 

     About Doing Good Well 

     The way we see the world can change the world. In this book, Willie Cheng frames and explains the nonprofit world while providing fresh insights as to where and why it works - or not. 
    He covers a spectrum of nonprofit paradigms including:

    The structure of the marketplace - challenging whether a “marketplace” truly exists.

    Concepts of nonprofit management - disputing why charities must follow corporate mantras of growth and reserves accumulation.

    Philanthropy and volunteerism - questioning the motivations of givers.

    New social models of social enterprises, social entrepreneurship and venture philanthropy - seeking to explain why these may not have worked as intended.

    Nonprofit quirks - showing how the rules can result in the extension of the rich/poor divide into the charity world and make fundraising inefficient through an efficiency ratio.

    In describing his ideas through an easy writing style and hearty anecdotes, Cheng engages and provokes the reader with a strategic review of the status quo as well as the enormous potential in the nonprofit world. After all, as Cheng describes it, charity is no longer simply about “Just Doing Good” but “Doing Good Well.”

    Friday, June 14, 2013

    Success is a state of being

    VERY often the benchmark of ­success is wealth. Everyone is judged by the external signs of wealth.

    People pass ­disparaging remarks about those who are doing service or providing for others but are not wealthy and do not display the signs of wealth.

    If people identify more with their external conditions or roles, they will inevitably feel inferior or superior to others and so lack self respect.

    The ways in which society works often blinds an ­individual from realising his/her own ­self-worth. For example, society sometimes gives ­acknowledge-ment only to those who are wealthy or occupy a position of authority. In reality, every individual has the right to know that worth is inherent in every human ­being.

    Self worth can help ­individuals avoid feelings of inferiority or superiority. The middle path is a dignified way of life.

    Success is not a material thing. It is a state of being. We might call it contentment, ­happiness or even peace.

    How do you define success? It is the completion of a task, another job well done, an exam passed, a promise kept, or a mountain climbed.

    Whatever we believe success to be will have a profound ­influence on our lives.


    Bridget Menezes is the author of Self-Empowerment and Spiritual Counsellor. Readers can email her at lifestyle.bridget@thesundaily.com.

    Sunday, May 26, 2013

    High salary and high performance require book smart and street smart!


    Heera: ‘Qualifications bring credibility to the job’. Heera: ‘Qualifications bring credibility to the job’.
    WHEN it comes to hiring suitable talents, it would be ideal to have a potential employee with the relevant qualifications as well as one that has practical experience.

    But what if there was just one vacancy available – and the organisation had to choose between the two candidates? In a hypothetical situation between a candidate that’s “book smart” (has the relevant qualifications) and one that’s “street smart” (has the practical experience), who would be the more likely choice?

    More importantly, is a high-paying job unattainable for those without formal education? Or is there still a chance for a candidate that does not have that oh-so-important diploma or degree?

    The book smart candidate

    Heera Training and Management Consultancy principal consultant Heera Singh believes a candidate with the relevant qualifications would generally be “technically competent” in that job.

    “It certainly brings credibility to the job. For example, if someone has a Masters in Human Resources (HR) Management, then the qualification enhances his credibility,” he tells StarBizWeek.

    “It also assists greatly in the recruitment and selection of employees. For example, if a job is advertised and does not specify technical qualifications, but only states practical experience required, then every Tom, Dick and Harry will apply and this will ensure lots of extra work for the HR department,” Heera says.

    Leaderonomics finance and human resources leader Ang Hui Ming concurs that having the right qualifications adds more credibility to an individual seeking employment – at least on paper.

    “Generally, the employee might probably have a wider knowledge-base theoretically of the function he is hired for and has some form of certification of his ability to understand at least the basic concepts of the function,” she says.

    However, it has often been said that what one learns in theory can be quite different in practice.

    Heera believes that the “book smart” candidate, though technically qualified, still lacks experience – an important element that may be vital in certain jobs.

    Ang: ‘Being technically qualified doesn’t mean they can do the jobs well’. Ang: ‘Being technically qualified doesn’t mean they can do the jobs well’.

    “Being technically qualified does not mean that they can do the jobs well. They may be more academically inclined rather than hands-on.

    “They may be technically qualified but may not like the job. Many people, for example, go to university and do courses that their parents want them to do, or courses which their friends are doing. All they want to do is to get their qualifications.”

    Ang, meanwhile, feels that not having the relevant experience is not a big deal – as it is something that can be acquired over time.

    “There is no real disadvantage, experience is to meant to be built anyway.

    “At most, it’s the lack of reality. If a person is all academic, it is uncertain how he or she will handle real life situations where the theories they learn needs to be adapted to the situation, environment and culture of any given place and time.”

    The street-smart candidate

    The advantage of hiring an employee with experience means that they can do the job straight away with minimal disruptions, says Heera.

    “There is minimum need for any job orientation and at interviews, you can ascertain the type of practical experience they have and see if it suits or meets your job expectations.”

    Ang concurs: “Generally, the employee might have deeper expertise in the function and would have experienced real-life situations in the function. This makes the person more adaptable and adept to handle similar natured situations more wisely and calmly.”

    “The type of experience is important. If they have the wrong type of experience, then it is of no use to the company. For example, if a person has worked in a HR capacity in a government department, then his experience may not necessarily gel with what is wanted in the HR department in the private sector.

    “Experience can be a bad teacher as it is always difficult to mould a person who has the experience but has picked up some bad habits along the way.”

    Ang feels there’s no real disadvantage to hiring someone that has no paper qualifications but is oozing with experience.

    “At most, probably a possible lack of what’s new in the market, or what’s happening on a global scale or what new technology is out there that can better equip him or her in the function.

    “This is only an assumption as people that are hands-on can still learn market trends and future technology if they read up and do research on their own. There is just no paper qualification – that’s all.”

    Does it really matter?

    According to an article on online investment site Investopedia, “Is It Better To Be Book Smart Or Street Smart,” its author, Tim Parker, points out that one does not need to have the relevant paper qualifications to be truly successful.

    “Steve Jobs, co-founder of Apple, is widely regarded as one of the best businessmen of his day. He didn’t have a college degree and neither did Steve Wozniak, the other founder of Apple.

    “Other successful businessmen without college degrees include Dell Computer founder Michael Dell, Microsoft founder Bill Gates and Virgin Brands founder Sir Richard Branson. People all over the world have found success without a college degree,” he writes.

    But is that the rule or the exception, he then asks.

    “Unemployment data shows that more than 8% of the population looking for a job (in the US) can’t find one.

    However, for those with a bachelor’s degree, the unemployment rate is only 3.9%. The unemployment rate is 13% for people without a high school diploma.

    “A college degree doesn’t guarantee success, but Bureau of Labour Statistics unemployment statistics show book smarts more than double your chances of finding a job.”

    Of course, having an employee with both the relevant paper qualifications and practical experience would be the optimum choice, naturally.

    “This would definitely be an ideal combination,” says Heera.

    Ang says having both qualities would indeed be a plus point, adding however that having both relevant qualification and practical experience does not make one a best employee.

    “It’s a person’s character, values and attitude that makes him or her a good employee. Qualifications and experience are all things that can be accumulated as long as one has the right attitude and desire.”

    By EUGENE MAHALINGAM eugenicz@thestar.com.my

    Saturday, April 13, 2013

    New economic thinking

    LAST weekend, over 400 top economists, thought leaders, three Nobel Laureates and participants gathered in Hong Kong for the fourth Annual Institute for New Economic Thinking (INET) conference, co-hosted by the Fung Global Institute, entitled “Changing of the Guard?”



    So what was new?

    In the opening session, Dr Victor Fung, founding chairman of Fung Global Institute, quoted Henry Kissinger as saying, “Americans think that for every problem, there is an ideal solution. The Chinese, and Indians and other Asians think there may be multiple solutions that open up multiple options.”

    That quote summed up the difference between mainstream economic theory being taught in most universities and the need to build up a new curriculum that teaches the student to realise that there is no flawless equilibrium in an imperfect world and that there is no “first-best solution”.

    Instead, what is important is to teach the aspiring economist to ask the right questions, and to question what it is that we are missing in our analysis. It is important to remember that theory is not reality, it is only a conceptualisation of reality.

    Nobel Laureate Friedrich Hayek, one of the leading thinkers on open societies and free markets, explained why the practice of mainstream economics is flawed. In 1977, he said, “A whole generation of economists have been teaching that government has the power in the short run by increasing the quantity of money rapidly to relieve all kinds of economic evils, especially to reduce unemployment.

    Unfortunately this is true so far as the short run is concerned. The fact is that such expansions of the quantity of money, which seems to have a short-run beneficial effect, become in the long run the cause of a much greater unemployment. But what politician can possibly care about long-run effects if in the short run he buys support?”

    Sounds familiar on present day quantitative easing?

    In his 1974 Nobel Laureate Lecture entitled “The Pretense of Knowledge”, Hayek showed healthy scepticism: “This failure of the economists to guide policy more successfully is closely connected with their propensity to imitate as closely as possible the procedures of the brilliantly successful physical sciences an attempt which in our field may lead to outright error.”

    Hayek understood what is today recognised as quantitative model myopia. What cannot be easily measured quantitatively can be ignored. Then it is a small step to assume that what can be ignored does not exist. But it is precisely what cannot be measured and cannot be seen the “Black Swan” effect that can kill you.

    In other words, economists must deal with the real world of asymmetry information, that there exists Knightian uncertainty, named after University of Chicago economist Frank Knight, what we call today unknown unknowns.

    Unknown unknowns arise not just from accidents of Mother Nature, but from the unpredictability of human behaviour, such as market disorder, which is clearly complex and ever-changing.

    If unknown unknowns are common in real life, then a lot of the economic models that appear to give us precise answers may be wrong. In other words, for every question, there is no unique answer and the solutions are “indeterminate”.

    George Soros, who helped found INET, explained his theory of reflexivity based on the complex interaction between what he called the cognitive function (human conception of reality) and the manipulative function (the attempt by man to change reality).

    His theory of reflexivity in markets differs from mainstream general equilibrium theory in one fundamental aspect. General equilibrium models assume that market systems are self-equilibrating, going back to stable state. Borrowing from engineering systems theory, we now know that this is a situation of negative feedback a system that gets disturbed fluctuates smaller and smaller till it returns to stable state.

    The trouble with nature and markets is that positive feedback can also happen. The fluctuations get larger and larger until the system breaks down. Nineteenth century Scottish scientist James Maxwell discovered that steam engines can explode if there is no governor (or automatic valve) to control the steam building up.

    At about the same time, English bankers learnt that banks can go into panic regularly without the creation of a central bank to regulate the system. Markets therefore need a third party the state to be the system “governor”. Free market believers think that the market will take care of itself. John Maynard Keynes was the first to recognise that when free markets get into a liquidity trap, the state must step in to stimulate expenditure and get the economy out of its collective depression.

    In the 21st century, we have evolved beyond Keynes and free market ideology. Belief in unfettered markets has created a world awash with liquidity and leverage, but the capacity of advanced country governments to intervene Keynesian style has been constrained by their huge debt burden.

    Larry Summers has pointed out that Keynes invented not a General Theory, but a Special Theory for governments to intervene to get out of the liquidity trap. The fact that we are still struggling with the liquidity trap means that economists are searching for new solutions, such as borrowing from psychology to explain economic behaviour.

    The INET conference introduced the thinking of French literary philosopher, Rene Girard, and his theory of memetic desire, to explain how social behaviour more often than not get into unsustainable positive feedback situations, either excessive optimism or pessimism. How do you get out of such situations? Girard introduced the concept of sacrifice. We will have to wait for the next conference to explore this new angle.

    Intuitively, all life is a contradiction. The sum of all private greed is not a public good. It does not add up. Someone has to sacrifice, either the public or a leader.

    Schumpeter's great insight about capitalism is that there is creative destruction. He only restated the old Asian philosophy that change is both creative and destructive. But out of change comes new life.

    In sum, contradictions are creative. What is new is often old, but what is old can be new.

     
    Tan Sri Andrew Sheng is president of Fung Global Institute.