Recession Survival - How to Outrun a Tsunami

March 12, 2009 — Facing the most destructive economic climate in decades, America's C-level executives are using a variety of standard-issue business strategies to steer their companies through the recession. Some have immediately turned to layoffs to reduce costs, some are trying to restructure debt, and others are utilizing pay cuts and hiring freezes to keep their businesses afloat.

Many, however, are unable to take decisive action, hampered by panicked shareholders and board members. One CEO was recently heard to say, "We're all looking at this huge tsunami heading straight for us, and it's so big and moving so fast that their attitude is 'There's no point even putting on waders.'"

Yet in the midst of all these actions and reactions, there is one management tool that many CEOs have overlooked during this financial crisis: operational improvement.

In essence, operational improvement (or process reengineering) is an activity that intensively focuses on the processes and systems of a business (production, supply chain, sales, cost control and capital expenditures) to examine opportunities for removing those elements that do not add value, or ones that create unnecessary cost. It isn't about strategy, capital expenditure or IT; it's about the human element of business processes and their improvement.

The benefits of such reengineering efforts are immediately apparent: wasted activity is reduced, productivity is increased, employee performance is enhanced. But, most importantly, the process releases working capital and can drastically improve a company's EBITDA figures.

The Need for Speed

This concept is well established in the Total Quality Movement from the 1990s and in current methodologies such as Lean, Kaizen and Six Sigma. CEOs usually hire firms of management consultants to help them develop such a program. More ambitious chief executives form internal "operational excellence" teams in an attempt to drive operational improvements using their own people.

So why is such a proven business improvement methodology being overlooked now?

According to Doug Wano, U.S. president of Proudfoot Consulting, the conventional forms of process improvement programs all lack one crucial element for being able to help a business survive the recession — speed of installation. "The problem is," says Wano, "CEOs can't afford to wait around for two years until the company's operational excellence program delivers the tangible cost savings it promised. They need operational improvements to deliver P&L results now!"

So how does a CEO add speed to process improvement programs? What's the missing ingredient? Wano continues: "The secret is in the execution. CEOs need to hire consultants who have a proven track record of frontline implementation of the process improvements they recommend. It isn't enough to write a big report recommending a list of business improvements, then walking away. Successful and accelerated process improvement only happens when the consultant sticks around to work side-by-side with the workers to embed the new behaviors. That's a pretty rare skills set. Not many consultancy firms can deliver on that requirement."

Wano adds that companies can release working capital and enhance their EBITDA within three to four months using this intensely focused approach to process improvement.

Utilizing process improvements as a tool to release working capital and improve productivity is a concept echoed by Jerry Jasinowski, former CEO of the National Association of Manufacturers. Jasinowski says: "Protection of the balance sheet by focusing on cash requires firms to reduce working capital and cut back on excess inventories quickly and dramatically. It's kind of a bridge to the process improvement points. Difficult economic times provide an opportunity for accelerating process improvement activities."

Bottom Line for CEOs?

Get back to basics by taking a deep dive through every aspect of your business operations: sales, marketing, customer service, supply chain, manufacturing, transportation and energy usage. Bring in a specialist, either internal or through the services of an operational consulting firm. Listen to what they say and take a long, hard look at the potential financial and productivity benefits they present.

But don't "green-light" the project until the consultants can prove that they are going to put "boots on the ground" and work alongside your frontline supervisors and employees day after day to embed the behavioral change necessary to deliver sustainable process improvement. And they need to show that their implementation will accelerate the delivery of real financial benefits in months, not years.

Concludes Wano: "That accelerated pace of delivery is now more crucial than ever. The recession is here, it's real, and its true scale is only now being realized. CEOs must choose to act, and choose a course of action that brings real cash benefits in the shortest possible time. Accelerated operational improvement offers CEOs a way to fight back and not only survive this recession, but better position their companies for the economic upturn."

(By Farzad Keshvargar)
Farzad Keshvargar is an executive vice president for Proudfoot consulting, an Atlanta provider of operational management consulting.

Overcome obstacles to sales by building customers' trust

In a recent article, corporate trainer Zig Ziglar wrote, “Every sale has five basic obstacles: no need, no money, no hurry, no desire, no trust.”

He goes on to explain that as business owners, while you can’t control the lack of need, money, urgency or desire, the one thing you can control is trust.

We can all agree that in recent months there has been a loss of trust in business – all you have to do is skim the newspaper headlines to see that.

In fact Edelman, the world’s largest independent public relations firm just released its 10th annual Trust Barometer for 2009. Not surprisingly, trust in U.S. business is the lowest it has ever been in Edelman’s tracking history - at 38 percent compared to 58 percent a year ago. It’s lower now that it was in the wake of Enron and the dot-com bust.

The study, which can be accessed at www.edelman.com/trust/2009, only confirms the wisdom that Ziglar imparts - trust affects consumer spending. Here’s a quick glimpse at some of the findings:

• “In the past year, 91 percent of 25-to-64-year-olds around the world indicated they bought a product or service from a company they trusted, and 77 percent refused to buy a product or service from a company they didn’t trust.

• Trust is one of the most important factors in determining a company’s reputation. It ranks just below quality of products and treatment of employees.

Likewise, in the first ever BBB/Gallup Trust in Business Index survey commissioned recently by Better Business Bureau, nearly one in five respondents said their trust in the businesses they regularly deal with has decreased in the last 12 months. Our national statistics support this trend. For the past five years the number of consumers both inquiring and complaining to BBB has steadily risen.

So if customer trust is something companies can control, why is it declining? And more importantly as a business owner, what can you do about it?

Define trust as it relates to your company. What does trust mean to you and how does it relate to your mission? What does it mean to your customers? Employees? Once you have a definition, live by it. It doesn’t work if you say your business is trustworthy. You have to act on it.

Below are the Standards for Trust that all BBB supporting businesses agree to uphold as a condition of their membership. If you’re not a member, consider pulling from them to develop your own internal standards. If you are accredited by BBB, now would be the time to let the world — or at least your potential customers — know these are the standards you uphold.

BBB Standards for Trust

• Build Trust: Establish and maintain a positive track record in the marketplace.

• Advertise Honestly: Adhere to established standards of advertising and selling.

• Tell the Truth: Honestly represent products and services, including clear and adequate disclosures of all material terms.

• Be Transparent: Openly identify the nature, location, and ownership of the business, and clearly disclose all policies, guarantees and procedures that bear on a customer’s decision to buy.

• Honor Promises: Abide by all written agreements and verbal presentations.

• Be Responsive: Address marketplace disputes quickly, professionally, and in good faith.

• Safeguard Privacy: Protect any data collected against mishandling and fraud, collect personal information only as needed, and respect the preferences of consumers regarding the use of their information.

• Embody Integrity: Approach all business dealings, marketplace transactions and commitments with integrity.

“Trust affects the quality of every relationship, every communication, every effort in which we are engaged … by behaving in ways that build trust with one, you build trust with many.” - Stephen M.R. Covey.

(Better Business Bureau of Southern Arizona)

Speaking Up Your Mind - Without Fear

Venezuela's President Hugo Chavez's speech at the United Nations General Assembly.

Who is the most influential & successful person in history?

Who is the most the world's most influential and successful person?

The Meaning of Positive Thinking - Dr. Alex Pattakos

Ultimately, we all have the freedom to choose our attitude towards all of life's situations, no matter what.

> http://alfalahconsulting.com/

SWOT Analysis: How to perform one for your organization

Erica Olsen from details how and why you should perform a SWOT analysis as part of your organization's strategic plan.

Attitude of Positive Self Esteem

Affirmation - Attitude of Positive Self Esteem

Jalini on Ingredients for Success - part 1/2

Jalini's talk on RTM 2's Morning Glory program, giving tips and pointers on defining and achieving success for yourself.

Jalini on Ingredients for Success - part 2/2

Jalini's talk on RTM 2's Morning Glory program, giving tips and pointers on defining and achieving success for yourself.

The Power Of Belief - Anthony Robbins

Powerful Affirmations

Affirmations are positive sentences that describe a desired situation, and which are repeated many times, in order to impress the subconscious mind and trigger it into positive action. In order to ensure the effectiveness of the affirmations, they have to be repeated with attention, conviction, interest and desire.

Imagine that you are swimming with your friends in a swimming pool. They swim fifteen rounds, something you have never done before. As you desire the respect of your friends, you want to show them that you can make it too. You start swimming, and at the same time keep repeating in your mind: "I can do it, I can do it...". You keep thinking and believing that you are going to complete the fifteen rounds. What are you actually doing? You are repeating positive affirmations.

More than often, people repeat in their minds negative sentences and statements concerning the situations and events in their lives, and consequently bring upon themselves undesirable situations. Such sentences and statements work both ways, to build or destroy. It is the way we use them that determines whether they are going to bring good or harmful results.

Affirmations work in the same manner as creative visualization. The repeated words build mental images and scenes in the mind, and help to focus on the aim, object or situation one wants to achieve or create. Frequent repetitions affect the subconscious mind, which in turn reshapes and affects the way one thinks, acts and behaves.

The conscious mind, the mind you think with, starts this process, and then the subconscious mind takes charge. This means that the most frequent thoughts that pass through your mind, ultimately affect your life and your destiny.

Affirmations work like commands that are given to a computer. They influence us, other people, events and circumstances. It might seem strange to you, but they do also influence the people we meet, our circumstances and the events we encounter.

Sometimes they work fast, but more often they need time. Repeating positive affirmations a few minutes, and then thinking negatively, neutralizes the effects of the positive words. You have to refuse negative thoughts, otherwise you will not attain positive results.

We mentally repeat negative statements, without even being aware of the process. We use them when we tell ourselves that we cannot do something, that we are too lazy, or when we believe we are going to fail. The subconscious mind always accepts and follows what we tell it, whether it is good or bad for us, so why not choose only positive statements?

How to Repeat Affirmations
It is advisable to repeat affirmations that are not too long, as they are easier to remember. You can repeat them anytime your mind is not engaged in something in particular, such as while traveling in a bus or a train, waiting in line, walking etc, but do not affirm while driving or crossing a street. You may also repeat them in special sessions of about ten minutes each, several times a day.

There should be no physical, emotional or mental tension while repeating them. The stronger the concentration, the more faith you have in what you are doing, the more feelings you put into the act, the stronger and faster will be the results.

It is very important to choose only positive affirmations. If for example you desire to lose weight, do not say, "I am not fat, I am losing weight." By saying this sentence you are repeating to your subconscious mind that you are fat. The word "losing" also evokes negative images. It is better to say, "My body has an athletic form, and weighs the right and healthy weight". Such words evoke positive images in the mind.

It is important to affirm in the present tense, not the future tense. Saying: "I will be rich", means that you intend to be rich one day, in the indefinite future. You are actually telling yourself that some day you will be rich, never now. It is better and more effective to say, and also feel, "I am rich now", and the subconscious mind will work overtime to make this happen now, in the present.

As to results, sometimes they may come fast, and at other times might take more time to manifest. Getting results depends on how much time, energy, faith and feelings you invest in repeating your affirmations, on the strength of your desire and on how big or small is your goal.

By using the power of affirmations you state what you want to be true in your life. You see reality, as you want it to be. For a while, you ignore your current circumstances and your doubts, and concentrate on a different reality.

Motivation at Work - how to increase workplace motivation

Motivation at work. People don't get passionate about shareholder value or business profits or excel spreadsheets. They get passionate and motivated about challenge, great teams, vision, important goals, having fun, about family and friends, about the community and world they live in. How to make things happen in Business. Connect with passion, keys to motivation, leadership and change management in business. Managing uncertainty with rapid change. Leadership styles. Why people get out of bed in the morning. How to motivate teams at work to do great things. Business management. Secret of leadership and ultimate leadership speech. Business ethics and values in corporations. Secrets of business success and increased productivity. Cutting costs. Increasing output. Adding shareholder value. Sustainable business success. Work life balance and lessons from non profits / volunteering. Why building a better world is such a powerful motivation. Lecture by Dr Patrick Dixon for MTN, author of Building a Better Business.

Future Conferencing - Patrick Dixon

17 Success Principles - The Common Traits of Successful People

17 Success Principles - The Common Traits of Successful People

Summary of Process Oriented Approach: A competitive Advantage according to Quranic Philosophy

Study of Quran clearly indicates that Islam demands us to act, perform and do our best. Results are from Allah SWT, the emphasis is on our actions, this fact becomes very much evident when we see Prophet Mohammad (PBUH) being informed multiple times in The Holy Quran that his duty is to warn and inform the people only: Say: "Obey Allah, and obey the messenger", but if ye turn away, he is only responsible for the duty placed on him and ye for that placed on you. If ye obey him, ye shall be on right guidance. The messenger's duty is only to preach the clear (Message) (Surah Al-Nour, verse 54). Furthermore it's also evident that our actions will decide our eternal fate: "… in his favour shall be whatever good he does, and against him whatever evil he does …" Surah Al baqarah, verse 286.

These verses (and many others) lay down ample emphasis on Muslims to keep their focus on their actions, paradoxically guarantying success; and describing inaction to be the determinant of failure, worldly and eternal: "By (the Token of) Time (through the ages). Verily Man is in loss. Except such as have Faith, and do righteous deeds, and (join together) in the mutual teaching of Truth, and of Patience and Constancy" (Surah Al Asa). Such a stress on action eventually develops a mindset which perceives results or success as natural outcome of actions i.e. you reap what you sow, actions bring results and right actions bring right results. It would be safe to assume that such a mindset ultimately cultivates qualities like persistence, determination, proactive attitude, thirst to improve, doing what's right, i.e. shifting our orientation toward process or the work content.

In business context, process oriented approach is paradoxical as it delivers results without allowing the individual to worry about them. The goal remains their but only to show the direction, only to judge that the path being followed is correct. The culture developed around such a concept is secure, people are candid, happy, and they get the job done on time and the exhibits other good things. The reason being, people here have no fear of any loss, what so ever, as their gains cannot be stolen, or lost, or depreciates with time. In fact their most valued achievable (knowledge, creativity, satisfaction to conscience) grows further when shared with others. People in process oriented culture remain at peace and tranquility, and on the path of continuous growth. The results keeps on flowing in, always reinforcing the fabric of the culture. Goal achievement and growth is always a natural outcome of a process oriented culture.

Please note that the fundamental root cause of all inefficiencies, wastages, procrastinations, organizational resistance to change, politics, etc is Fear! This is an inherent part of goal oriented approach. Lack of knowledge, skill, and experience also cause mistakes but it's only once. If mistakes are repeated then its fear, that is blocking the learning process. Fear of not reaching sales targets, fear of facing an embarrassing situation, fear of not reaching any personal goals (monetary or egoistic) etc. As natural instinct fear boost ego defensiveness, Fear creates a tunnel vision, it blocks thinking, it reduces empathy, it reduces synergy, and it increases selfishness. Fear can be a motivator, when the task involves only a single individual, but that's seldom in an organization. Interaction and team work is the name of the game, and fear alone makes it difficult or even impossible for the team to get synergize.

Realistically organizations are a blend of people who are 'goal oriented' and those who are 'process oriented'. Those organizations cultures where people are inclined more towards Goal Oriented approach has a propensity to die off in a shorter period of time as they are developed around tangible concepts like profit, brand image, market share, performance in stock market etc. since tangibles has perishable nature thus the organizations build around the same, behave like the same as well. Dramatically it can be said "since the 'ends sought' are perishable in nature, thus these ends itself takes the organization toward its 'end' ".

On the contrary those organizations which inclined more towards process oriented approach has a history of lasting multiple generations, for the simple reason they don't run after these tangibles rather treat them as a natural outcome of their actions, they in fact strive for things which are eternal in nature, thus bringing similar qualities within their culture as well. People comes, people go, the process oriented organizations remains intact for generation as shown by Jim Collins in his books 'Good to Great' and 'Built to Last'.

In such companies, the culture is not developed around the personality of the entrepreneur (for his pocket or profit) rather upon certain ideals, and universally accepted principles and a vision greater than the organization itself. This happens when it's about achieving something more important than the survival of the organization itself. Generically speaking the constituents of this vision should be the benefit and contribution to the humanity, the nation, or the community, the profit is indeed a byproduct and only treated as a need for survival, a means to achieve the vision.

Such visions are global; they cannot be achieved in totality, though paradoxically inspiring unbeatable and untiring action. They provide direction for the processes and an everlasting inspiration and energy for execution. The motivating energy felt by the individuals is the feature of their work, their activities (as Jim Collins proclaims in his book "Good to Great"), tasks or standard operating procedures designed around the organizational vision, naturally shifting their inclination toward process end of the spectrum.

Bringing oneself toward process orientation is more a matter of choice. Our inclinations are not hardwired rather they are a product of our choices based on our perception of externalities i.e. events which have been delightful, unusual or even painful in nature. The greatest misconception or misperception most people have that their fate is predetermined, i.e. they cannot choose to be in any different state of existence. If that would have been the case then why Allah SWT would have held us accountable for our actions? The concept of accountability in the hereafter is the greatest proof that our actions are our choice. And the result follows; right choice of action delivers favorable and flourishing results and wrong choice of actions: vice versa. That's the law of nature as designed by the Great Architect of the universe. The results are always promised as proclaimed many times in the Holy Quran.

"Not equal are those believers who sit (at home) and receive no hurt, and those who strive and fight in the cause of Allah with their goods and their persons. Allah hath granted a grade higher to those who strive and fight with their goods and persons than to those who sit (at home). Unto all (in Faith) Hath Allah promised good: But those who strive and fight Hath He distinguished above those who sit (at home) by a special reward," (Surah Nisa, verse 95)

In order to be process oriented we have to get our focus on the real satisfying and motivating factors which are learning, creativity and satisfaction of our conscience. In other words we must be very clear about the factual equation of causality between persistence and success. Furthermore we have to understand what is meant by success? Is it more wealth, more respect, a high profile job, sky rocketing standard of living? And if this is what we called success then would we be able really persist in our work if we focus on money and the so called respect and esteem or status attached to it?

The so called famous quote 'money can't buy happiness' (Washington Post, Monday, July 3, 2006; Page A02; Science Confirms: You Really Can't Buy Happiness) disagree just this. And it's obvious, and widely accepted concept, but seldom practically applied. Furthermore being a Muslim it's also imperative for us to understand the true source of satisfaction i.e. mentioned in The Holy Quran in Surah Ra'd verse 28 and 29: "Those who believe, and whose hearts find satisfaction in the remembrance of Allah. For without doubt in the remembrance of Allah do hearts find satisfaction. For those who believe and work righteousness, is (every) blessedness, and a beautiful place of (final) return." And when we do, the following eventually implies as well: "And whoever places his trust in Allah, He is sufficient for him." (Surah At-Talaq: verse 3), "And whoever fears Allah, for him Allah brings forth a way out, and gives him provision (rizq) from where he does not even imagine…" (Surah At-Talaq: verse 2~3).

"Nothing in this world can take the place of persistence. Talent will not; nothing is more common than unsuccessful people with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent. The slogan "press on" has solved and always will solve the problems of the human race." - Calvin Coolidge

If that's how our believes are aligned, then it's obvious to conclude in the context of the discussion that the focus should eventually be diverted away from the tangible goals and toward the process, actions, deeds, tasks, efforts, struggle, performance and persistence of course when inspired with the ultimate Vision of life; as that's where true happiness and satisfaction resides. And when we don't persists, disaster strikes, as warned in Surah Al Asar: By (the Token of) Time (through the ages). Verily Man is in loss. Except such as have Faith, and do righteous deeds, and (join together) in the mutual teaching of Truth, and of Patience and Constancy. Further to keep us on track, we have been foretold that our acts, deeds, behavior, conduct and struggle will be questioned in the final examination, not the so called ingredient of success such as wealth, respect and esteem.

Messenger of Allah (PBUH) said, "Man's feet will not move on the Day of Resurrection before he replies to 5 questions, he will be asked about his life, how did he consume it, his knowledge, what did he do with it, his wealth, how did he earn it and how did he spend or dispose it , and about his body, how did he wear it out.' (At- Tirmidhi)

The choice is ultimately ours …

(by Omar Javaid )

Napoleon Hill talks about "The Secret" to Think & Grow Rich

Click & Grow Rich

Mind Power and Success

The mind plays an important role in achieving every kind of success and goal, minor, everyday goals or major goals.

With minor or day-to-day goals, one usually knows what he wants to do or get, but when it comes to major goals, most people don't know what they really desire. They desire to do something big, but they don't know what. You may have a vague idea, but this is not enough. To accomplish anything, and to use your mind power, you have to know exactly what it is you want to do. To focus your mind power on a goal, you need to have a clear and well defined goal. How do you go about that?

You have first to think or meditate, to find out what is it that you want to accomplish or gain. For this you need focused and clear thinking. This ability can be improved and strengthened by practice.

After discovering what you really want to accomplish, you need to come up with a plan for action. You need to know what you have to do first and how to proceed. All of this requires planning, which means using the power of the mind.

After deciding on a goal and coming up with a plan, you need to hold in your mind a clear mental image of your goal. You need to see it accomplished. This step requires that you use your imagination, which is another power of the mind. Not everyone can visualize clear mental images, but regular training of the imagination can do wonders. You may, for example, look at photos of what you want to achieve, and then close your eyes, and try to see it in your imagination. This will enhance your ability to visualize.

At this point you have to display patience, self-discipline and the power to persist in your efforts. This requires a one pointed mind.

Affirmations are another useful mental tool for you to use. What you affirm sinks into the subconscious mind, becomes part of the subconscious mind, and consequently affects your behavior and actions. If your affirmations are positive, they lead you to success.

Another important power of the mind is thought transference. You need to be able to transmit your thoughts to other people, who would aid you with your plans. Often, you have to persuade others to invest in your plans or to help you in other ways. It is not enough just to talk with them, you need to believe in what you are saying; you need to be enthusiastic and persuasive, otherwise they won't listen and won't care. You need to be able to reject your and their doubts. To be able to do so, you need concentration, control over your thoughts, willpower, self-discipline and patience. All these are mental tools and skills.

Motivation is another mental and emotional power that you require. How can you achieve anything if you are not motivated enough? To increase your motivation and enthusiasm, think often of your goal, about its advantages and benefits, and how it will change your life. Doing so, will strengthen and your motivation.

Your thoughts, which are part of your mind, possess power. The thoughts that you most often think tend to come true. If you pour your mental energy into the same thoughts or mental images day after day, they will become stronger and stronger, and would consequently affect your attitude, expectations, behavior and actions. These thoughts and mental images can even be subconsciously perceived by other people, who would then offer you help or opportunities. Your thoughts can also create what is usually termed as coincidence. They can attract into your life corresponding events, situations and opportunities.

Not every thought turns into reality. A thought has to be repeated often, and be tinged with emotions, in order to come true. Doubts fears and worries tend to destroy what you build with the power of your mind. This means that you need to clear your mind of negative thoughts and doubts. You might say that this is not possible, but it is, through proper training, which you can find at this website, in the articles, ebooks and books.

(By Remez Sasson/Success Consciousness)

The Power of Positive Thinking

Positive thinking is a mental attitude that admits into the mind thoughts, words and images that are conductive to growth, expansion and success. It is a mental attitude that expects good and favorable results. A positive mind anticipates happiness, joy, health and a successful outcome of every situation and action. Whatever the mind expects, it finds.

Not everyone accepts or believes in positive thinking. Some consider the subject as just nonsense, and others scoff at people who believe and accept it. Among the people who accept it, not many know how to use it effectively to get results. Yet, it seems that many are becoming attracted to this subject, as evidenced by the many books, lectures and courses about it. This is a subject that is gaining popularity.

It is quite common to hear people say: "Think positive!", to someone who feels down and worried. Most people do not take these words seriously, as they do not know what they really mean, or do not consider them as useful and effective. How many people do you know, who stop to think what the power of positive thinking means?

The following story illustrates how this power works:
Allan applied for a new job, but as his self-esteem was low, and he considered himself as a failure and unworthy of success, he was sure that he was not going to get the job. He had a negative attitude towards himself, and believed that the other applicants were better and more qualified than him. Allan manifested this attitude, due to his negative past experiences with job interviews.

His mind was filled with negative thoughts and fears concerning the job for the whole week before the job interview. He was sure he would be rejected. On the day of the interview he got up late, and to his horror he discovered that the shirt he had planned to wear was dirty, and the other one needed ironing. As it was already too late, he went out wearing a shirt full of wrinkles.

During the interview he was tense, displayed a negative attitude, worried about his shirt, and felt hungry because he did not have enough time to eat breakfast. All this distracted his mind and made it difficult for him to focus on the interview. His overall behavior made a bad impression, and consequently he materialized his fear and did not get the job.

Jim applied for the same job too, but approached the matter in a different way. He was sure that he was going to get the job. During the week preceding the interview he often visualized himself making a good impression and getting the job.

In the evening before the interview he prepared the clothes he was going to wear, and went to sleep a little earlier. On day of the interview he woke up earlier than usual, and had ample time to eat breakfast, and then to arrive to the interview before the scheduled time.

He got the job because he made a good impression. He had also of course, the proper qualifications for the job, but so had Allan.

What do we learn from these two stories? Is there any magic employed here? No, it is all natural. When the attitude is positive we entertain pleasant feelings and constructive images, and see in our mind's eye what we really want to happen. This brings brightness to the eyes, more energy and happiness. The whole being broadcasts good will, happiness and success. Even the health is affected in a beneficial way. We walk tall and the voice is more powerful. Our body language shows the way you feel inside.

Positive and negative thinking are both contagious.
All of us affect, in one way or another, the people we meet. This happens instinctively and on a subconscious level, through thoughts and feelings transference, and through body language. People sense our aura and are affected by our thoughts, and vice versa. Is it any wonder that we want to be around positive people and avoid negative ones? People are more disposed to help us if we are positive, and they dislike and avoid anyone broadcasting negativity.

Negative thoughts, words and attitude bring up negative and unhappy moods and actions. When the mind is negative, poisons are released into the blood, which cause more unhappiness and negativity. This is the way to failure, frustration and disappointment.

Practical Instructions

In order to turn the mind toward the positive, inner work and training are required. Attitude and thoughts do not change overnight.

Read about this subject, think about its benefits and persuade yourself to try it. The power of thoughts is a mighty power that is always shaping our life. This shaping is usually done subconsciously, but it is possible to make the process a conscious one. Even if the idea seems strange give it a try, as you have nothing to lose, but only to gain. Ignore what others might say or think about you, if they discover that you are changing the way you think.

Always visualize only favorable and beneficial situations. Use positive words in your inner dialogues or when talking with others. Smile a little more, as this helps to think positively. Disregard any feelings of laziness or a desire to quit. If you persevere, you will transform the way your mind thinks.

Once a negative thought enters your mind, you have to be aware of it and endeavor to replace it with a constructive one. The negative thought will try again to enter your mind, and then you have to replace it again with a positive one. It is as if there are two pictures in front of you, and you choose to look at one of them and disregard the other. Persistence will eventually teach your mind to think positively and ignore negative thoughts.

In case you feel any inner resistance when replacing negative thoughts with positive ones, do not give up, but keep looking only at the beneficial, good and happy thoughts in your mind.

It does not matter what your circumstances are at the present moment. Think positively, expect only favorable results and situations, and circumstances will change accordingly. It may take some time for the changes to take place, but eventually they do.

Another method to employ is the repetition of affirmations. It is a method which resembles creative visualization, and which can be used in conjunction with it. It is the subject of another article on this website.

The other articles at this website, about the power of concentration, will power, self-discipline and peace of mind also contribute to the development of a positive mind, and are recommended for reading and practicing.

(by Remez Sasson/Success Consciousness)

The Power of Positive Attitude

by Remez Sasson

Positive attitude helps to cope more easily with the daily affairs of life. It brings optimism into your life, and makes it easier to avoid worry and negative thinking. If you adopt it as a way of life, it will bring constructive changes into your life, and makes them happier, brighter and more successful. With a positive attitude you see the bright side of life, become optimistic and expect the best to happen. It is certainly a state of mind that is well worth developing and strengthening.

Positive attitude manifests in the following ways:

Positive thinking.

Constructive thinking.

Creative thinking.

Expecting success.

Optimism.

Motivation to accomplish your goals.

Being inspired.

Choosing happiness.

Not giving up.

Looking at failure and problems as blessings in disguise.

Believing in yourself and in your abilities.

Displaying self-esteem and confidence.

Looking for solutions.

Seeing opportunities.

A positive attitude leads to happiness and success and can change your whole life. If you look at the bright side of life, your whole life becomes filled with light. This light affects not only you and the way you look at the world, but also your whole environment and the people around you. If it is strong enough, it becomes contagious.

The benefits of a positive attitude:

Helps achieving goals and attaining success.

Success achieved faster and more easily.

More happiness.

More energy.

Greater inner power and strength.

The ability to inspire and motivate yourself and others.

Fewer difficulties encountered along the way.

The ability to surmount any difficulty.

Life smiles at you.

People respect you.

Negative attitude says: you cannot achieve success.
Positive attitude says: You can achieve success.

If you have been exhibiting a negative attitude and expecting failure and difficulties, it is now the time to change the way you think. It is time to get rid of negative thoughts and behavior and lead a happy and successful life. Why not start today? If you have tried and failed, it only means that you have not tried enough.

Developing a positive attitude that will lead you to happiness and success:

- Choose to be happy.

- Look at the bright side of life.

- Choose to be and stay optimistic.

- Find reasons to smile more often.

- Have faith in yourself and in the Power of the Universe.

- Contemplate upon the futility of negative thinking and worries.

- Associate yourself with happy people.

- Read inspiring stories.

- Read inspiring quotes.

- Repeat affirmations that inspire and motivate you.

- Visualize only what you want to happen.

- Learn to master your thoughts.

- Learn concentration and meditation.


Following even only one of the above suggestions, will bring more light into your life!

(Success Consciousness)

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Management guru offers tough advice for troubling times

By Stefan Stern

What does a management guru have to tell us in the good times? Maybe not all that much. Keep doing what you are doing, they could say. Enjoy the proceeds of growth.

But today, in the depths of a crisis, how much more exciting the guru's task has become. And you can sense the glee of Ram Charan, the noted management writer, as he sets about his task in this new, slim book, "Leadership in the Era of Economic Uncertainty: The New Rules for Getting the Right Things Done in Difficult Times."

"This is more like it," he seems to be saying. "Now I have something to contribute." And what he contributes is some stark, pithy advice on what business leaders need to do now to avoid disaster and prepare for a better future.

"Management challenges don't come any bigger than this," Charan declares at the start. "The economic peace of the past generation is over. We're in a war for survival, beset by fear, uncertainty and doubt."

Yesterday has gone, and executives need to change their approach.

"Leaders must be prepared to make strategic, structural, financial and operational changes -- many of them drastic -- in a hurry, and with information that is at best incomplete," he writes.

This is all classic guru writing, stressing the extremity of the situation. But from Charan -- who has already brought us bestsellers such as "Execution" and "What the CEO Wants You to Know" -- it seems plausible. His forte is bold advice delivered with convincing rhetoric. And he has completed his new text just at the right time.

It is fuel-injected, back-to-basics stuff.

"You absolutely must have sufficient cash or credible access to it to weather the storm," he writes. "You can and should know your company's cash position every day. . . . Projects that once were evaluated on the basis of their return on investment now must be judged in terms of how much cash they consume and can generate, and how soon they can bring in cash."

This obsession with cash leads Charan to make a bold, counterintuitive suggestion: Give up increases in revenue and in market share. He refers to one unnamed chief executive who lost 8% of his sales volume after raising prices. "But the new prices stuck and the result was the security of improved cash flow."

If readers are still reeling from that, they will have to prepare themselves for further startling advice.

"The new reality is that, barring acquisitions, your company will be smaller two years from now than it is today," Charan writes. "You have to reduce your workforce and capacity . . . survival depends on cutting costs and raising cash . . . narrow your focus and concentrate on the core of your business."

"In the end," he says, "you will have fewer customers, fewer products, fewer facilities, fewer people, fewer suppliers -- and a stronger company."

The pace of business has to be stepped up, he argues. What use is an annual budget at a time like this? What is needed is intensive, "hands-on, head-in" management. And realism tempered with optimism.

He divides his advice into a series of short chapters that look at separate business disciplines: finance, operations, human resources, the supply chain, sales and marketing, and research and development.

Some of the best tips have to do with people: Stay on the lookout for talented potential recruits worried about their future with their current employer. Make sure you are providing employees with lots of accurate and up-to-date information on the state of the business to combat "a constant drumbeat of depressing coverage by newspapers, television and blogs."

This is a slightly breathless primer, unsurprisingly so given the speed with which Charan has responded to the crisis.

But it will provide encouragement and sharp ideas to any business leaders feeling overwhelmed by the sea of troubles that confront them.

And don't look now, but after this crisis is over, the next one may be on its way soon. "Actions generate reactions," Charan says, "and many business leaders and analysts expect the next phase to be inflationary since so much money has been pumped into the world financial system."

You have been warned.

Stefan Stern is a columnist for the Financial Times of London, in which this review first appeared.

(Los Angeles Times)

Self Reflection Leads To Greater Success

by Kevin Eikenberry

If I could give you a tool or resource that would change your life in positive ways, change your results, create more happiness in your life and help you get better at anything you desired.. And if I could promise you that this tool would cost you nothing, require only yourself and could be used at any time...

Would you be interested?

I'll bet you would.

Now at the risk of sounding a little bit like a carnival barker or used car salesperson what I just told you isn't hype - there is such a tool. And you already possess it.

The tool is reflection.

I'm sure that you know people that have been on a job for 10 years and have continued to get better and better at their work. And you probably also know people who have been on a job for ten years, but it is like they have one year of experience, ten times. In other words, they never really reflected on their work and results and so nothing seems to get better. They don't seem to learn from their past experiences.

Which of these people would you hire? Which of these people do you want on your team?

But I'm Too Busy
The number one reason I hear for people not reflecting is that they are too busy. They are too busy moving from task to task, from project to project, and event to event. When they recount this challenge to me they end by asking, "When would I have time to reflect?"

Our lives are much different than were the lives our grandparents. 75 or 100 years ago in the evening people would gather around a table or sit on the front porch and sip iced tea and visit about their day. What they were doing was relaxing and, while not in a very structured way, they were reflecting on their day.

We all know that this type of reflection works because as one of the things we ask our children when they come home from school is "How was your day?"

We say we are too busy - that the reason we don't reflect is that we don't have porch time. Somehow we do find television time - and while there is nothing wrong with television - it doesn't allow us the space, time or opportunity to reflect as we sit watching it.

Other Reasons
Time is typically our excuse, but it isn't the only reason we don't reflect. We also don't reflect because:

• We don't think about it.
  
• We don't realize the importance of it.
  
• We don't value it.
  
• We don't think we know how to do it.

Hopefully reading this helps you get past the first reasons. Let me deal now with the last one - the issue of skill.

Examples

We all know how to reflect, consider . . .

• Sitting around a table with friends playing a card game. In between hands, people are talking about what they could have done, should've done, might've done - all of this conversation is simple reflection. And while some people playing the game don't like to "overanalyze it," spending that time in conversation about what just happened will make us better card players in the future.
• Or for those in a different generation, the reflection is the time they take between two rounds in a video game as they quickly think about what happened and how they do it differently the next time.
• Golfers quickly analyze their swing as they watch the trajectory of their shots, thinking about what worked and what they might adjust.
• And we do it at work, thinking about how the meeting or presentation went as we leave and move to the next item on our calendar.

So we know how, and we even do it sometimes, but how can we use this skill more successfully more often?

How to Reflect More Effectively

1) Make time
Reflection is about having time. We all have the time, regardless of how busy are schedules are.

• Reflect in the shower.
• Reflect on the drive to work (turn off your radio or your iPod and think).
• Reflect in the moments before you go to sleep.
• Reflect with your family as you eat a meal.
• Turn off the television.

There is time - we just have to carve it out.

2) Ask questions
Reflection is about thinking and questions help our brains think. Consider using his list of questions as your "starter set" of reflective questions - the questions to help you think about what happened and what you can learn.

• What worked? Why?
• What didn't work? Why?
• What does this situation remind you of?
• How can I use this experience?
• How does this experience relate to other situations I've been in? What can I learn for that situation?
• Knowing what I know now, what would I do differently next time?

3) Think more broadly
Don't just apply your thinking to how you would do this exact same task or respond in this exact same situation the next time. Our lives are too complex for that! Think about what you can take from this experience and apply to other related or perhaps even unrelated situations. Look for generalizations, patterns, tendencies and underlying principles. When we think more broadly we make our reflection time infinitely more beneficial to our lives.

This is some of my reflection on reflection. As we practice this skill we will get better at it and our results will begin to improve dramatically. Make the time. Ask the questions. And by all means apply what you learned. When you do this, you will make your life experiences your most precious source of learning, and your most fertile ground for your own success.

(SideRoad)

Future of Malaysia Economy - Dr. Patrick Dixon

Expect rapid economic growth in this country with growing population and pro-business government with well educated and energetic workforce. Comment following recent visit by Dr Patrick Dixon, author Futurewise.

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Future of Telecom and Consumers. Belgacom client event - 700 CEOs and CIOs by conference keynote speaker Dr Patrick Dixon. Future of communications, marketing, management, leadership, virtual teams and virtual organisations. Virtual meetings and distance learning. Future bandwidth, video streaming demand, convergence and divergence of technology. Future innovations in communication. Strategy for emerging markets and developed markets.Banks will become phone companies and telecom companies will become banks. Mobile payment systems, micropayments, mobile phone credit card transactions and loans.All innovation is divergent - doing things different and better. But most companies focus on convergence on price, quality, features.image, branding, winning customers, online marketing and building trust. Consumer changes, preferences and lifestyles. Videoconferencing and virtual teams. Winning the war for talent - motivation and leadership styles.

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Personalising risk management

By Julian Birkinshaw and Huw Jenkins/ Financial Times

Why is it that very smart executives can sometimes make extraordinarily poor risk decisions? This question has bothered observers of the business world for generations, but in the past 18 months it has gained extra importance as we try to make sense of the implosion of the financial services industry.

Of course, the problem of poor risk management is not confined to banking: sectors as different as oil and gas, pharmaceuticals and telecommunications have all experienced their share of poorly judged risks. But the banking industry, and the credit crisis in particular, provides a rich context for understanding where risk management goes wrong and how it can be improved.

In the years leading up to the credit crisis, most financial services companies focused on the formalisation of risk management, by developing multi-stage procedures with many signatories to evaluate and adjudicate on what risks were worth taking. They also relied on externalisation of risk management to a large degree – the use of expertise and approval from outside parties such as auditors, regulators and credit ratings agencies. We suggest that in future they need to give more attention to the personalisation of risk management. This requires greater quality of insight, greater personal accountability and a stronger support culture for risk management.

Personalisation of risk management does not mean throwing out the traditional systems and support structures. Rather, it means a subtle shift in emphasis from the management of a portfolio of risks to the underwriting of individual risk decisions. This approach is relevant across all sectors of the economy, not just to the world of financial services companies.

How do companies manage risk

Risk management requires companies to balance two distinct types of risks: the “false positive” risk associated with investing in a potential opportunity that does not transpire; and the “false negative” risk associated with failing to act on an opportunity that did transpire.

The consequences of false positive and false negative errors are very different. For example, if an oil and gas company is extremely cautious about investing in new oilfields, it can generally avoid costly false-positive mistakes in the form of dry wells, but it risks leaving money on the table that other competitors can pick up.

So how do companies manage risk? How do they bring to bear the necessary level of knowledge and expertise on difficult decisions? And how do they ensure that individuals act in the best interests of the company, rather than themselves? Historically, the answer to these questions was bureaucracy. While the term is often used in a pejorative sense, bureaucracy has benefits: namely, it encourages the development of formal rules and procedures that transcend individual idiosyncracies and historical orthodoxies. However, it also has many unwanted side effects: it can become overly rigid and specialised, it discourages individual thought, and it can lead to depersonalisation and a lack of ownership on the part of employees.

It is this last effect that is most salient here. As companies grow, they need to build formal systems to generate economies of scale and scope, but they need to balance that with the agility, personal accountability and freedom of expression that comes from a small, more entrepreneurial environment. While this point is often made in the context of innovation and creativity, it is just as valid in the management of risk.

Consider, for example, the winners and losers in the credit crisis. While there were certainly some notable failures among small players such as hedge funds, the big losses were borne disproportionately by the very large banks. This was partly because small financial services companies did not have the credit ratings or balance sheets to carry the so-called “super senior” tranches of the collateralised debt obligations that ultimately got the big investment banks into trouble. But it was also partly because the decision makers were close to the action, highly knowledgeable and personally accountable for the outcomes of their decisions. As one leading hedge fund executive commented: “We have robust informal systems, we communicate naturally, and we develop our own views on what risks to take. We get a return on our judgment.” This is the exact opposite of a bureaucratic system, and a world away from the thousand-person strong risk functions that some of the large investment banks had built up during the boom years.

To put it another way, there are three complementary approaches to managing risk in large companies.

•Formalisation involves using formal procedures and rules to evaluate and adjudicate on what risks are worth taking.

•Externalisation involves making use of the expertise and seal of approval provided by third parties – some required by law (auditors and regulators), others optional but widely used (credit ratings agencies). Both of these approaches are manifestations of bureaucracy – the former controlled by the company’s management, the latter controlled by third parties.

•Personalisation involves pushing the responsibility for evaluating and making a judgment on risk to those individuals who are making decisions.

While all three are necessary and used to varying degrees all the time, the recent evidence in banking and elsewhere suggests that we need to redress the balance back towards personalisation, especially in large companies.

Goldman Sachs, one of the best performers through the credit crisis, is frequently held up as the acme of personalisation. As Gillian Tett, FT global markets editor, has observed: “Employees [at Goldman] typically view themselves as being affiliated to the bank, not the business line, and there is a strong ethos of shared accountability.” But Goldman is the exception that proves the rule: the rest of the industry has relied heavily on bureaucratic approaches to risk management and the strategies of the major players have gradually converged over time.

How to personalise risk management

What does personalisation of risk management mean in practice? The concept has intuitive appeal, but many people struggle with how to balance the need for personalisation with broader systems of control and management. We suggest three necessary and supporting elements.

High-quality insight. Those who make decisions require good quality information, effective analytical tools and the competence to interpret this information. But it is rare for all these things to come together. It is more likely for decisions to be made with poor insight from self-interested sources, and with the relevant information fragmented across different parts of the company.

For example, one study has shown that mortgage loans securitised and sold on to non-banks in the early 2000s were far more likely to end up in default than when they were sold to affiliates of the originator. It is not surprising that banks that were selling loans had a different level of focus on the likelihood of default than those that held such loans to maturity. What is more surprising is that regulators and investors did not concern themselves more with this potential bias.

Effective personalisation of risk management is, therefore, about building a system that puts the right information into the hands of those making decisions, and then transforming that information into insight through experience.

Here is one example of how this works in a different setting. The UK police force gathers intelligence on a daily basis about criminal activities, community affairs and so on. Usually these are dealt with quickly and without note, but occasionally an incident escalates and becomes more serious. To better alert themselves to these escalations, the police have instituted a “critical incident” approach, in which an employee of any rank can call together a cross-force group to pull together all the available information about an incident, and make a decision on how to react. Critical incidents only arise occasionally, but they provide an effective way of quickly bringing to bear the disparate views on an issue and reaching a thoughtful decision.

Personal accountability. Effective risk management requires personal accountability, but most companies get this wrong as well. Sometimes there are too many decision makers, or the decision maker is too far removed from the action to feel any genuine responsibility. And often there is no link between the decisions taken and the rewards provided.

For example, in recent years, banks traded in risky securities to optimise short-term profits without giving due regard to the appropriate cost of capital or the long-term behaviour of these securities. Many people have argued that a large factor in the creation of the current financial crisis was this focus on short-term accounting profit and the reward systems aligned with it.

Instead, we need a system where personal accountability is rewarded, and where the individual or team with high-quality insight is also the one making the decision. For example, one of the basic principles that every airline captain knows is: make risk decisions at the appropriate level. Appropriate here means the level where the individual has the necessary experience and maturity to make a good decision. The captain may delegate specific decisions to engineering specialists or dispatchers, but the decision to fly the plane rests with him or her – not on the wishes of the air traffic controllers or the airline’s chief executive.

This logic has clear applicability to the business world. Some of the best performers through the credit crisis, such as JPMorgan Chase and Goldman Sachs, were well known for their collegial, team-based decision processes, built on open debate, intellectual honesty, and sufficient self confidence to take contrarian decisions.

Supportive culture. The informal norms of behaviour in a company – its culture – should support the principles of high-quality insight and personal accountability. But all too often, these informal norms end up undermining the effectiveness of decision making. Some companies exhibit a fear culture where bad news is hidden from top executives; some are purely mercenary, where everyone looks out for themselves; some suffer from chronic risk aversion, with almost zero tolerance for false-positive errors.

Of course, there is no simple way to build a supportive culture. It takes many years of consistent messages and actions from leaders. But there are, nonetheless, a couple of basic principles that can be applied.

One is the need for transparency of purpose. Consider, for example, a leading mining company that committed a decade ago to eliminating one type of risk: employee injuries at work. All leaders signed up to this goal, all employees were trained on the company’s safety standards, measures of lost-time injuries were monitored for all sites, and managers’ compensation was linked to safety. Today, all meetings – even those in white collar environments – start with a safety update. Safety thinking is deeply ingrained in the minds of individuals throughout the company, and the safety record is impressive. Cultural transformation, in other words, is possible when it is tied to a very clear purpose that everyone can identify, and when it is reinforced through consistency of action. To return to the police force example earlier, a key feature of the “critical incident” model is to acknowledge the efforts of the individual who calls it, even if it proves to be a false alarm.

The other principle is a refusal to simplify the big picture. Studies have been conducted of nuclear power plants and aircraft carriers where errors can have catastrophic consequences, and they have sought to understand how these “high reliability” organisations function. It has emerged that one of the key features is that individual employees – involved, for example, in routine maintenance activities – are expected to take responsibility for seeing how their work fits into the big picture. So, rather than compartmentalising every task, employees are encouraged to look across and to understand how their work has implications for others.

This approach has obvious relevance in the financial services industry. As one leading hedge fund manager explained: “We need to remain humble. I don’t claim I know the answers; that is the golden rule. Strengths become weaknesses in a dislocation. We make our biggest mistakes where people claim we are strong.”

Conclusion

The credit crisis was brought about by the accumulation of a large number of circumstantial factors, but it was exacerbated and ultimately triggered by poor risk management decisions, and structures, at many large financial services companies. By turning the spotlight on these weaknesses, we have identified some key principles for effective risk management, not just in financial services but in other sectors as well.

But there is one important caveat. Good decision making in the world of financial services is not just about making objectively correct decisions, it is also about making decisions in the context of rapidly changing market conditions. Even the best decisions can look foolish in retrospect if market forces change fundamentally.

So, if the first challenge is how to make better quality decisions, the second challenge is learning how to adapt them to accommodate the market. But that is a matter for a separate article.

Julian Birkinshaw is professor of strategic management at London Business School

Huw Jenkins is executive in residence at London Business School

The 10 Best Leadership Books of All Time

The task here at the Leadership Playlist -- to share must-reads from the world of leadership -- just got easier, thanks to The 100 Best Business Books of All Time, out this month from Portfolio. The authors, Jack Covert and Todd Sattersten, who run the business book publisher and website 800 CEO Read, list and review the 10 best leadership books.

And how did they choose them? "We had three litmus tests," Sattersten told me in a phone interview. "Was the book accessible and well written? Are its lessons applicable today? And, third, would we apply the insights in our own business?"

Of the 10 leadership books that made the cut, four were authored by On Leadership panelists. Authors Covert and Sattersten gave me a quick, Twitter-style run down on each.

1. On Becoming a Leader, by Warren Bennis. "His message is, you can't be a leader until you know who you are. It's that simple," said Sattersten. "Once you know, you have amazing ability to lead successfully."

2. The Leadership Moment, by Michael Useem. "It's a book you read for the stories, not because you're looking for a solution," Covert told me. "I think the stories sit in the back of your mind, and when you reach a crisis situation -- which so many people are right now -- you can call on them." (And yes, I am related the author, he's my dad.)

3. The Leadership Challenge, by Jim Kouzes and Barry Posner. "It's the first book your read on leadership because it offers such a compelling model for thinking about leadership," said Sattersten. "You can use it as a basis for looking at everything else you encounter."

4. Control Your Destiny or Someone Else Will, by Noel Tichy and Stratford Sherman. The book, about Jack Welch's leadership at GE, is the story of "the great corporate turn-around story of the 20th century," said Sattersten. And not because GE was faltering when Welch took charge -- on the contrary, said Sattersten, GE at the time was running "an acceptably profitable business," and yet still Welch was able to implement major changes. "It's like Tiger Woods changing up his golf swing at the top of his game," added Covert.

The other books on their list are:
Leadership is an Art, by Max De Pree
The Radical Leap, by Steve Farber
Leading Change, by John Kotter
Questions of Character, by Joe Badaracco
The Story Factor, by Annette Simmons, and
Never Give In! Speeches by Winston Churchill.

Covert and Sattersten also said they'd add recently published Tribes by Seth Godin to this list if they could update it.

With many saying Wall Street has witnessed a massive failure of leadership, I asked Sattersten and Covert if they'd like today's leaders to read these books. Answered Sattersten: "Yes, I'd like them to read the books. But what I'd love more is for someone to actually lead us."

(By Andrea Useem/Washington Post)

Royal Professor Ungku Aziz reveals secrets to success

KUALA LUMPUR: What are Royal Professor Ungku Abdul Aziz's secrets to success? One of them is to read nine books.

This includes Harvey Diamond's Fit for Life, Not Fat for Life, Edward De Bono's Thinking Course, Tony Buzan's Mind Map, Head First and The 36 Strategies of the Chinese: Adapting An Ancient Chinese Wisdom to the Business World by Wee Chow Hou and Lan Luh Luh.

Others are Jim Collins' Level 5 Leadership, Sun Tzu's Art of War, Nicollo Machiavelli's The Prince on the Art of Power and Leader's Window by J.D.W. Beck and N.M Yeager.

The 87-year-old voracious reader said the books provide an insight on how to be good and successful leaders.

Citing an example, he said Edward De Bono's Thinking Course promotes lateral thinking.
"The book teaches you to think differently," he said in his lecture "Quest For Success" as part of the Merdeka Award Lecture Series. He was a recipient of the award last year, in the education and community category.

Ungku Aziz said a good leader would have intelligence, credibility, humility, courage, and discipline.

He also said a good leader would be able to spot opportunities during crisis.

"Every crisis opens up opportunities," he said.

Later, when taking questions from the floor, Ungku Aziz said successful people were those who had resolve because their minds were strong and were resolute in reaching their goals.

"At the same time, humility is important, too.

"I'm happiest when I go to a kampung and people tell me 'you macam itu universiti punya' (you look like the person from the university)," he said to laughter from the floor.

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Investing in Communities: Opportunities at the “Base of the Pyramid’?

by Michelle Brown / CSR Asia

Faced with recession, the response of companies to global development challenges will need to be more strategic. For many years, companies have been called on and expected to ‘do more’ in tackling global and local development challenges. At the same time, there is a growing enthusiasm for new approaches to addressing social and environmental challenges that embed a spirit of entrepreneurship and good business practices. Can strategies to engage new markets at the ‘base of the pyramid’ help make a real difference?

Charity and philanthropy alone is not going to get us there. If we want to improve the impact that business can have on communities and on development we can’t rely on charity. Many global companies use a guideline of ‘one percent of pre-tax profit’ to guide their community contributions. With this equation, despite some companies arguing otherwise, it is reasonable that with falling profits we could see ‘falling contributions’. This is not to say there is not an important role for philanthropy – I believe there is; but there is also ‘good philanthropy’ and ‘really bad philanthropy’. It also can’t be used to define an overall approach to CSR. Community investment can be one part of CSR. Like other aspects of business, companies should be able to track and measure their community investment and understand the value for both communities and for the business. Investing to build sustainable communities is a must for business. While we can continue to encourage companies to not forget about the community and to work to address poverty and underdevelopment, we need to help create new partnerships for business to have a positive and sustainable impact on communities.

Alongside this trend, companies have been looking to understand how to engage with new markets. CK Prahalad pointed to the potential ‘fortune at the bottom (or base) of the pyramid’ (BOP) in his influential book, a reference to the billions of people who are not recognized in traditional companies’ target customer audience. This book and the other writings of Prahalad and Hart were also influential for business audiences stressing the need to recognize the poor as creative entrepreneurs and not as ‘victims’. This also follows good practices espoused over the decades by development agencies. BOP theory presented itself as a strategy for companies to alleviate global challenges and tap into potential markets at the same time.

For those concerned with pro-poor development and poverty alleviation there have been some interesting reports released in 2008. All of them call on companies to focus on building sustainable communities with their core business. Last summer the UNDP released a study on ‘Growing Inclusive Markets’, which was a compilation of case studies written by 50 authors throughout the world. Recognising the contribution that micro-finance has made in this area, the authors looked for case studies from across other sectors. Cases from Asia included in the research were:

• Coco Technologies: a Philippines company that produces geo-textiles from waste coconut husks. It is a growing and viable business that has created an additional income stream for coconut farmers, helped to empower rural women, and reduces waste.
• Huatai’s work in China’s wood-pulp production for the paper industry is referenced. They provide alternative income sources for local tree farmers and add to the incomes of about 6,000 rural households.
• Lafarge’s work in Indonesia is noted for the positive outcomes in rebuilding cement-based homes and businesses in post-tsunami areas. The structures provided homes for employees and the wider community and also helped the company showcase cement structures.
• Narayana Hrudayalay, the Indian Hospital group has developed an insurance programme for low-income patients.
• Tsinghua Tongfang’s affordable computer for rural areas in China
• Smart in the Philippines provides mobile telecom products and services for low income and overseas communities. Its distribution system, using SMS technology, allows merchants to re-sell minutes, taking a commission on every sale; in essence creating a business opportunity for 450,000 entrepreneurs and proving telecom access to communities previously underserved.

Another interesting partnership in the region is between Danone and Grameen in Bangladesh. In 2006 they joined to form a new company called Grameen Danone Foods, which is a social enterprise. Initially focusing on affordable dairy products, the enterprise also plans to get involved in biogas and solar energy. Clearly these are examples that are ‘good for business’ and ‘good for communities’.

In reference to the BOP strategies of multi-nationals, Prahalad and Hart (2002) note that “it requires a radical new approach to business strategy”. Their research pointed to the fact that initial strategies of large companies to tap into the BOP failed because they looked at the poor only as consumers as opposed to partners in production and distribution. The strategy cannot be alien to the communities in that it wishes to serve. While early attempts were applauded for making an effort, many simply didn’t work. Many BOP strategies have not been successful because they saw the poor as a homogeneous group of consumers and, by their strategies, often created excess packaging and engaged in unsustainable business practices (Welford, 2006). Learning from the past, companies that are successfully engaging the ‘BOP’ are shifting from ‘selling to the poor’ to ‘business co-venturing’.

A useful and recently updated resource is The Base of the Pyramid Protocol: Toward Next Generation BOP Strategy by Erik Simanis and Stuart Hart (Cornell University: 2008). ‘First Generation’ BOP attempts failed because they did not adequately understand the market or consumers. The BOP protocol points to a ‘Second Generation’ of BOP initiatives, which brings MNCs into partnership with local communities creating lasting value and measurable impact. Companies can help to develop social enterprises that can in turn help them to better understand and reach a new market. But for some companies, this can mean a very different way of doing business. Local participation and a ‘bottom-up’ approach to product development are seen as crucial for such ventures to work. Furthermore, success will be measured not just on the financial viability but also on the social value created.

The Protocol walks readers through both a preliminary research and development phase and a community based planning phase. Research and development involves selecting the project site; creating multi-disciplinary teams and selecting community partners. The planning phase involves working together with communities to develop and build an initial prototype. The protocol also provides a Code of Conduct on BOP business strategies that calls for the following:

• Design businesses that increase earning power, remove constraints, and build potential in the BOP
• Ensure that wealth generated by the business is shared equitably with the local community
• Use only the most appropriate – and sustainable – technologies
• Promote the development of affected communities as broadly as possibly in ways defined by the local people themselves
• Track the “triple bottom line” impacts associated with the entire BOP business system
• Monitor and address any unintended negative impacts associated with the business model
• Share best practices with local partners to the extent possible
• Report transparently and involve key stakeholders in an on-going dialogue
• Commit to increase community value regardless of the business outcome

Those working in this arena argue that we need to understand and measure the social, economic, and relational aspects of communities that engage in BOP projects in order to understand the full impact.

Interest in this continues to grow; even the Journal of Consumer Marketing recently had a whole edition dedicated to engaging with poor consumers. Will more companies use the ‘slowdown’ as an opportunity to ‘get ahead’ in new markets? Can co-creating social enterprises provide the answers? Thoughts? Ideas? Good examples? Lessons learned in Asia? Please get in touch.

Reports and publications mentioned in this article:

• CK Prahalad and Stuart Hart. 2002. ‘The fortune at the bottom of the pyramid’. Strategy + Business. January edition.
• CK Prahalad. 2005. ‘The fortune at the bottom of the pyramid: eradicating poverty through profits’.
• Erik Simanis and Stuart Hart. 2008. The Base of the Pyramid Protocol: Toward Next Generation BoP Strategy.
• Richard Welford ‘MDGs and BOP’’ in CSR Asia Weekly, Vol.2 Week 34 (23 Aug 2006). ■