Companies need to create the role of Entrepreneurial Leader

Business is challenging. Being successful at business is extremely challenging. It takes a tremendous amount of time and energy to acquire new clients, retain existing clients, manage your team, manage your portfolio of projects and deliver the high-quality products and services that you need to remain competitive in the market.

Do you want an idea of how busy you are while running your existing business? How many unread emails do you have? Hundreds? Over a thousand? How old is the oldest email?

What about meetings? Excluding time reading and composing emails, what percentage of your day is taken up by meetings regarding existing business, for example, with clients or employees about existing products and services on offer? If you include travel time I have never even seen this percentage below 50 per cent and it is usually much higher, around the 75 per cent mark.

Now let’s get to the crux of this article. What percentage of the time do you spend learning, thinking or developing new business lines? What percentage of your resources are dedicated to evolving the business? I am talking about actual time and energy spent here, not wishful thinking. Is it 0 per cent? 1 per cent?

Continue reading

Why British Airways is losing to Emirates, Etihad and Qatar Airways

I arrived at the airport at 10.50pm. My flight was scheduled for a 1:45am departure but I like to arrive early. It gives me time to sort out any issues, especially as I had a connecting flight with a three-hour window. And if there were no issues, well that was the perk of flying business – relaxing in the lounge.

I walked into the check-in area for first and business class. I didn’t see a counter for my airline open. It happens sometimes, they don’t start at exactly the three-hour pre-departure mark. So I sat and waited.

What transpired next was a complete breakdown in the operational effectiveness of the airline.

Continue reading

Ipic-Mubadala merger does not have to follow a template

Ipic and Mubadala, two major Abu Dhabi investment funds, have been mandated to merge. The outcome does not have to be a single company. In this article I will look at an innovative option for the Ipic-Mubadala merger to result in more than one company and how such a multi-result merger can support Abu Dhabi’s Economic Vision 2030.

I recently wrote in detail on what strategies the NBAD-FGB merger could take and in a subsequent article I delved into a major challenge such a merger might face. The detail was possible because both NBAD and FGB are listed companies and have strong disclosure requirements.

When discussing Ipic and Mubadala, we are talking about two privately held institutions and as such there is less public information at this time. This does not stop us from conducting a thought experiment, if you will, to try to understand the options available.

The key issue we will look at today is that a merger does not have to be about acquiring market share or new business lines. A merger can be about rationalisation and refocus.

Continue reading

NBAD and FGB's Merger Challenge: Work Culture

In my last article I talked about the two main paths that the merger of FGB and National Bank of Abu Dhabi could take. The first is simply extending the current business of each by using the path of acquisition rather than organic growth. The second is to trigger a radical redesign of the business model. I concluded that it made strategic sense for FGB and NBAD to take the second path. In this article I touch on how that can happen.

FGB and NBAD are banks and banks, in the end, are predominantly about service. The product part is simple. Money: you can deposit it with them and you can borrow it from them.

The price part, interest rates, is also simple. It has nothing to do with the cost of manufacture as banks don’t manufacture money and besides it is mostly electronic. No, price is driven by the human resources running the banks as well as market supply and demand of money. Since this is driven by people, we can conclude that banks are in the services business.

Continue reading

Company grief: when a company falls in the economy, does it make a sound?

There is a well-known model on the stages of human grief called the Kubler-Ross model. I believe it can be the basis for a form of company grief, a grief that we are seeing in a growing number of companies during these difficult times. In this article I describe the seven stages of company grief – ignorance, shock, denial, anger, bargaining, depression and acceptance.

Continue reading

Improving customer service is not that hard

At the top end of customer service, airlines such as Etihad and Emirates are world leaders. In hospitality, service in nearly all five, four and three-star hotels is outstanding. This quality is not reserved for the private sector. For example, renewing my passport or driver’s licence is now pure joy compared with a decade ago.

At the bottom end of customer service there is a wide range of culprits. One of the banks that I deal with repeatedly calls me ahead of when a credit card is due, to tell me that the due date is approaching. Worse, it calls at all hours – not only during working hours – and calls repeatedly even if you reply. Even worse, it often uses an automated system to call, and when I answer a message tells me to hold the line while they connect a call agent. This insanity repeats itself right after I pay – the bank wants to thank me for paying. I do not see how any sane executive looked at the proposal for this service and decided that, yes, this would improve customer satisfaction.

Another bank I use has an internet banking application that allows me to log in using a code that is texted/emailed to me or generated via an electronic device. Most banks do this. They also use a virtual keyboard whereby I have to use the mouse to click on the keyboard on the screen to enter my password. Many banks use this. What drives me crazy? This particular bank positions the keys randomly on the keyboard so that I have to spend five minutes playing “Where’s Waldo?” to type out my password. I now fear having to access my account online. This approach to security has been dropped by everyone else.

The problem with customer service is that there is little incentive for decision-makers to do anything about it. Consider companies and government departments of old, where there was no queuing system for clients. It was a mob scene, but it did not affect the employees that much. It takes a brave executive or technocrat to request a simple system, queue tickets on arrival – that costs money but the return is to the brand and not easily measured. I for one would like to thank all the decision-makers who put such systems in place, thus ending chaos and frustration.

Etihad, Emirates, the Jumeirah Group and others all understand the value of customer service to their brand and the value of their brand to their profits. The stronger the brand, the more it can charge for services and the less it has to pay employees and suppliers who benefit from working for a company with a brand.

So how can you avoid the mistakes of the two negative examples used above? The first is a little common sense. For example, tacking on mountains of supposed internet security systems may seem to make things safer, but in the end they also make things unusable. Managers should use the services of their competitors just to get a first-hand feel for what is happening in the market.

Another tool is an effective customer survey. To be effective, such a survey must first attract a representative cross-section of the client demographic. For example, it does not help the banks above if a client, such as myself, simply leaves, thereby denying the original bank the chance to rectify an issue.

More importantly, for a survey to be effective the executives of the company must do something with the results. A good way to encourage this is for companies to publish the results to their clients along with a plan to rectify the issues followed by a post-plan survey to see the results. This approach not only keeps management honest but also engages clients by showing them that they have been heard.

Customer services does not begin with the magic that is Etihad, Emirates or Jumeirah Group. It begins with simple steps: a queue ticketing system; virtual keyboards with keys in the normal positions; effective capture and remediation of client complaints.

These simple steps are not where client-service gurus usually start. They begin at the advanced stage, talking about interpersonal relationships, the psychology of managing an irate customer and, invariably, a client-orientated culture. These are important points but only relevant after the systems, processes and procedures have been fixed.

This article was originally published in The National.

What makes for a Happy Workplace?

It is thought that happy employees improve the performance of a company. This has been championed most publicly by Google, with its large assortment of toys, break rooms, food and beverages, services and transport for employees.

But is this concept correct?

Although it is relatively clear that unhappy employees would be harmful to a company, this does not necessarily imply the opposite. And it is even less clear that just giving workers goodies will bring them joy, either.

Continue reading

Good Management is more Kaizen and less Blitzkrieg

Many finance authors, including this one, will usually talk about the big steps that a company has taken to become successful. Sony’s Walkman portable tape player in the 1970s, Microsoft’s Dos operating system in the 1980s and Apple’s iPhone today. But this is not managing a business so much as it is innovation; innovation can only take you so far, and it is not strictly necessary.

What is management at its core? It is constant maintenance and making small, continuous improvements, which the Japanese call Kaizen and is one of Toyota’s core values. A good metaphor is tending a garden. A garden, like a company, cannot usually just come into existence. Sure, you could buy plants and grass turf and have a garden overnight, but that is no different than buying a company. I’m talking about planting seeds and nurturing the garden.

Continue reading

The 7 Habits versus GTD

I have been writing predominantly about the management of other people and have for the most part neglected the equally important issue of managing oneself. Today, I begin rectifying that.

There are two main popular approaches. The first and older one is espoused by Stephen Covey in his seminal book The 7 Habits of Highly Effective People. The book is a little dense but imparts great value, and I highly recommend reading it – perhaps on an annual basis.

Continue reading