My Zawya Story: The Importance of Independent Board Members

November 3, 2014 By in Corporate Governance Tags: ,

This post is part of the My Zawya Story series.

I have written extensively about corporate governance (both on the board and on management) and will not repeat myself here. What might be useful is to talk a little bit about the human dimension and my Zawya experience provides a perfect opportunity. In the initial years the Zawya board was a mix of the Zawya founders and Saffar executives and appointees. As the company grew and matured two new directors joined: Steffen Schubert and Anthony (Tony) Mallis. They added tremendous value to the Zawya board and to the company itself. Continue reading →

My Zawya Story: Strategic Growth Decisions

November 2, 2014 By in Strategy, Strategy Cornerstone Tags: ,

This post is part of the My Zawya Story series.

If negative cash flow the main characteristic of the foundation phase of a start up and break even cash flow represents the institutionalisation phase then the third phase is growth represented by increasing positive cash flows. This is where the fun begins. All stakeholders are basically happy, assuming a lack of greed, and strong excess cash flow growing at close to a triple digit rate really opens up the options in achieving your vision. The three main choices, not necessarily exclusive, are pay dividends to the shareholders, invest in organic growth and grow via acquisitions.

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Adventures in the Money Markets: The Rise of Godzilla

November 1, 2014 By in Trading Tags: , ,

Money markets are the inter-bank market for short term borrowing and lending. Banks manage their strategic asset–liability mismatches as part of their overall long term plans for raising deposits and making loans. Short term reality however rarely tracks long term execution and tactical money market operations are necessary to mange the short term fluctuations of the balance sheet. Normally the money market desk of a treasury is considered boring, with excitement belonging to the currency desk. But once in a while a situation can develop that would challenge the most aggressive of currency dealers. This is the story of such a deal. Comfort with arithmetic is required.

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Building an Effective Working Relationship with the Human Resources Department

October 31, 2014 By in HR Tags: ,

One of the challenges faced in writing about management is that it can be difficult to differentiate between what might seem like platitudes and genuine advice. For example in terms of managing one’s human resources the idea of succession planning seems like a great idea, but what does it actually mean? It is like advising a sick person to just get better. Great advice, but useless in terms of actionable information.

How comfortable are managers with their HR skills? A simple, but valuable, proxy for an answer is the number of results for books matching the keyword “human resources” on Amazon: 209,344. Assuming a lack of authors and publishers with a fetish for publishing human resources books in the absence of any demand, it would appear that managers have an unslaked thirst for solutions to their HR challenges. So how to solve this epidemic? Perhaps the answer lies not so much in generating new concepts or recycling old concepts but in explaining in better detail well established concepts.

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My Zawya Story: Positive Cash Flow Challenges

October 30, 2014 By in Strategy, Negotiation Tags:

This post is part of the My Zawya Story series.

Most entrepreneurs would be surprised that positive operating cash flow can present challenges. After months, even years, of striving for the magical cash flow break even point what problems can there be once this goal is reached? The challenge is sustainable growth as painful initial sacrifices on expenses are reversed and short term investment horizons on the income front need to be extended.

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My Zawya Story: Negative Cash Flow Lessons

October 29, 2014 By in Project Management Tags: , ,

This post is part of the My Zawya Story series.

Negative cash flows are a standard feature of any start up and most SMEs when they go through a negative economic cycle. Anyone who has been through that knows well the sheer terror of wondering what he will tell his team on pay day when he does not have the funds to pay their salaries, or what he will tell suppliers, or how he can explain to his shareholders that he needs more funding. It is a sobering experience. Continue reading →

Saudi Oil Price, the Global Economy and Correcting Media Economists

October 29, 2014 By in Economy Tags: ,

The hysteria surrounding Saudi Arabia’s increase in oil production and a subsequent drop in oil price to the mid-eighties and possibly lower is non-sensical. It’s nearly as bad a media reaction as if oil prices had moved the same amount upwards. Reports in the media have focussed on the possible political machinations of such a ‘dastardly’ move and the economic effect on oil producing countries not least of which is Saudi Arabia. Personally, the first thing that comes to my mind is that oil has dropped around 30% in the last few months and that is great news for the global economy and the world’s population. Why aren’t people rejoicing?

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Discovering the Meaning of Entrepreneurship

October 28, 2014 By in Entrepreneurship Tags:

عربي

Entrepreneurs, often romanticised as modern day pioneers hewing their future from the raw fabric that is the global economy, have come to epitomise the current professional’s dream: master of your destiny, flexible schedule and lifestyle, ability to dictate the culture of the business with fantastic riches to be reaped. The salutary books on the subject buoyed by a sea of magazine articles and blogs has spread and reinforced these dangerous ideas to every corner of the globe. Any attempt to temper or broaden the discussion is met with a tidal wave of criticism usually accusing sceptics of being anti-capitalist and closed-minded. This is unfortunate as it makes it harder for would be entrepreneurs to receive a better idea of what can be a rewarding professional life. Continue reading →

Deconstructing Strategy

October 27, 2014 By in Strategy, Strategy Cornerstone Tags: , ,
This entry is part 1 of 3 in the series Strategy

I think that it is safe to say that most people entering the work force view strategy as some kind of mystical plan developed by all knowing executives using arcane skills. At the other end of the spectrum I don’t think that there exists a C-level executive who at least once didn’t wonder whether strategic planning wasn’t a ritualistic sham, a cosmic joke played on executives the world over. I know that I have experienced both feelings.

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