Being the need of the times
Billy C Sichone © Copy right 2005 With foreword by Professor Fackson Banda
The Strategic Horizon
Billy Chilongo Sichone
Credits Pastor Choolwe Mweetwa (The short term mindset) NASA (SPACE pictures) Chikondi Phiri (Prologue) The Post News paper James Mateyo (Life journey, pp 24) Stephen Covey Celtel (Freedom Statue picture, pp 24) Dr Bill Cohen (Chapter 4) Profit Magazine 1993 The New African magazine Kazumba Arthur Msimuko (ZCCM case study)
“The Tiger woods theory of change” At one time, Woods decided to retrain himself for two years and during that time, his performance dropped but when he completed the workout, he played as no person has ever played before! Professor Rebecca Henderson, Eastman Kodak LFM Professor, MIT lecture, ‘Stuck: Why it’s so hard to do new things in old organizations’ December 6 2007. This is reinventing oneself!
Copy right © 2005 Billy C Sichone All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, digital, mechanical, photocopying, recording, or otherwise, without prior written permission of the copyright owner.
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Praise for this book. “A deeply researched and well thought out piece of writing, which has undoubtedly made a tremendous effort to address contemporary Zambian inertia in Strategic thinking. The work brings out the selflessness and patriotic spirit striving to move our country forward to the promised land of milk and honey” Mr Lubiya, Mancosa 2007 MBA student. “The book has been written in an analytical manner. It sets you thinking as you read” Mr Kelvin Sovi, Human Resources Advisor, Mopani Group of Companies, 2008.
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The Strategic Horizon Foreword
Zambia is caught in the throes of change. As a result of the processes of globalisation – liberalisation, internationalisation, privatisation and commercialisation – the country faces a very uncertain future. Amidst these fast unfolding changes is the uncertainty wrought by the global financial and economic crisis. Indeed, the very discourse of globalisation has been brought into question as a result of this crisis. This constitutes the external environment in which all companies and other organisations in Zambia are located, raising questions about the kind of leadership that can inspire confidence and engender optimum organisational – and personal – performance in such uncertain times. The Strategic Horizon: Being the Need of the Times by Dr. Billy Sichone could not have come at a more opportune moment. It rises to face up to these uncertainties, appropriately sub-titled ‘being the need of the times’. Indeed, given the changes and uncertainties I have pointed out above – most of them associated with globalisation – it is incumbent upon business entities and other organisations to exercise ‘strategic’ thinking and planning. But Dr. Sichone does not end at describing what makes for a strategic thinker and doer. He goes further. He problematises the notion of strategic thinking and management, questioning its assumed universal relevance and applicability. It is here that his contributions assume a scholarly and academic patina. As such, Strategic Horizon makes a significant contribution to the growing body of academic and professional knowledge on strategic management and leadership. It is evident that literature in this field has been undergoing nothing short of a revolution. As I have suggested, even the very notion of ‘strategy’ is in flux, often questioned by the more constructivist approaches to management and leadership, such as ‘African leadership’ or ubuntu.
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Dr. Sichone reminds us of the need to consider strategic thinking as an organic amalgam of managerialism and leadership. In other words, a strategist is one who leads through transaction or management. It is impossible to separate the transactional or managerial aspects of organising from those of leadership. As such, to organically combine both is an exercise in strategic thinking and leadership. Dr. Sichone – through this book – helps us to meander the key concepts and principles that underlie strategic issues. His case studies, applicable to the Zambian context as they are, make this book truly relevant. Indeed, his case studies of personalities involved in strategic reasoning and performance altogether enliven this book, making it a pleasurable read. What lends the book to commendation is its applicability across disciplines, fields and professions. It can be read by the student of media management, for example, just as easily as it can be read by the MBA student. I thus recommend this book to anyone who seeks to understand the generality of strategic planning and the specificity of strategic leadership in any situation they may find themselves in. Prof Fackson Banda SAB LTD-UNESCO Chair of Media and Democracy School of Journalism and Media Studies Rhodes University Grahamstown, South Africa
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Preface
For a number of years, Zambia has firmly lain in the poverty clutches as though doomed to permanently dwell there. In a sense this perception is true but in another, it is a serious case of poor planning and implementation on the part of all concerned. In short, Zambia has had very poor strategy. Sadly, this poor strategic vision does not only remain at the personal but tragically at the domestic that ultimately manifests at the National level. It has been this author’s settled and firm conviction over many years that once the strategic processes are appreciated and internalised by a critical mass of Zambians both at individual and national level, then the nation will have begun to emancipate her self from all the apparent chronic ills that have hitherto buffeted her. This holds true for the entire African continent and the third world/developing countries globally. The rationale is that once we realize our potential and pragmatically act on it, then we shall be able to see what we have in our hands and prudently exploit it to surmount all odds. The Zambian context is a playground of a primarily defective and crippled mindset. It is therefore the battle of the mind which, once rectified will be the great engine driving our strategies to the Promised Land flowing and teeming with milk and honey. A mental regeneration is the desperate need of the times. There is need to begin inculcating this correct entrepreneurial, patriotic mindset to the next generation right from infancy, yea, at nursery level, as it were. With the advent of the sweeping liberalised market economy to Zambia and beyond, in the full globalization sunlight, strategy is a must for every individual and entity. In addition, it has become apparent that as a nation, we have sufficient professionals who have “down loaded” knowledge from the developed world and should now show case by pragmatically implementing their prowess on the local scene. Sadly, many end at being excellent analysts but scandalously poor implementers. A cursory look at our
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Parliamentarians’ credentials∪ gives a hair rising tip in the grisly iceberg of what we are up against. This book attempts to trace the root causes and lay down principles to remedy the many great ideas’ still born births. This is done in a number of ways by first giving a general over view, definition of terms while referring to real life situations on the Zambian scene. As scenario after scenario is painted, the book constantly applies the lessons to the individual’s life or better still, the nation. Pictures and diagrams have been included to further enhance the presentation quality and clarity. I am fully conscious that my back ground orientation has taken its toll on my perception but hope the laid down principles maintain the desired objectivity. To that end then, I recommend this book to your perusal and see what becomes of you after wards! Billy Chilongo Sichone 20.12.2006 Mongu Zambia
∪
Refer to The Post article, ‘Noble obligation’ dated August 5th 2007, pp X which displays how paltry their credentials are, no wonder they fail to articulate issues in Parliament! Sadly, sometimes, the very educated prove to be the worst culprits!
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Acknowledgement
In coming up with this book, many quality-enhancing hands have touched it by way of comment or editing such that it would be practically impossible to mention all of them by name. Nevertheless, at the risk of leaving out many others, I would like to take the liberty to thank the following for all the moral and financial support they rendered: Mr Chikondi Phiri and Mr Johnson Malipenga for making valuable comments and reading through manuscripts, Monsieurs Sikapale Chinzewe and Lutangu Lubasi, for the ready hand and leadership tips, Pastor George Musonda for the unique writing as well as editing prowess, Mr Dabson Mwendafilumba for taking time off his extremely busy Masters degree study program to offer insights, Mr Paul Mumba for his modern MBA updates and comments, Mr Charles Chabala for the modern Strategic Management trend analysis, and the various sources without which I could not have succeeded. It would be deep ingratitude not to acknowledge the Zambian Reformed Baptist Pastors for their practical strategic eye and wisdom passed on to me over the years as I have ‘downloaded’ from their “inexhaustible servers”. They have mightily spoken into my life over the years. Accolades also go to the great galaxy of numerous students/workshops/community/church participants that gave feed back as the book was tested for its validity. A volume of this nature can scarcely go error free, thus the errors and opinions expressed in this book remain squarely mine. Had individuals and firms not sacrificed to finance this project, everything would have remained a pipe dream. Special thanks to all who generously contributed. They know themselves and deserve to know that theirs was a noble task. In many ways than one, this book is a product of at least three Provinces, the Southern (Sinazongwe), the Western (Mongu) and the Northern (Mpika). It was whilst labouring in these venerable locations that this book idea was hatched, developed and completed. Hats off to natives of these mentioned Provinces. I sincerely thank everyone for their matchless support. Most of all, I salute my ever supportive wife and daughter, Jane and Zevyanji through out the labours.
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To all of you, I say Nasalifya
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Contents
ACRONYMS ...................................................................................................................................... 12 PROLOGUE ....................................................................................................................................... 14 INTRODUCTION TO THE STRATEGIC WORLD ....................................................................................... 16 STRATEGY OVER VIEW ...................................................................................................................... 23 STRATEGY, ITS NATURE AND DEFINITION........................................................................................... 33 MICROSCOPIC VIEW OF STRATEGY TACTICS ....................................................................................... 55 THE WINNING ORGANISATION .......................................................................................................... 77 CORPORATE OBESITY ........................................................................................................................ 96 BIBLIOGRAPHY ............................................................................................................................... 104 THE UNIVERSAL CORPORATE PANACEA ........................................................................................... 108 REASONS FOR TQM FAILURE ........................................................................................................... 119 STRATEGY, ITS NECESSITY ............................................................................................................... 128 BILL GATES & MICROSOFT .............................................................................................................. 130 THE MANAGER AS A STRATEGIST..................................................................................................... 144 DEVELOPING STRATEGIC INSTINCTS ................................................................................................. 174 DEVELOPING STRATEGIC INSTINCTS PART II: IDENTIFYING OPPORTUNITIES ...................................... 220 IN BUSINESS, CARE MUST BE TAKEN NOT TO REACT BY SRC AS VARIOUS DIFFERENT CUSTOMS; TASTES AND CULTURES EXIST IN THE INTERNATIONAL BUSINESS. ................................................................. 233 PEOPLE MANAGEMENT................................................................................................................... 290 REASONS WHY EMPLOYEES LEAVE .................................................................................................. 374 DIRECTORS/CEO ............................................................................................................................. 377 STRATEGIC BENEFITS....................................................................................................................... 392 STRATEGIC EFFECTS ........................................................................................................................ 406 STRATEGY CHALLENGES .................................................................................................................. 420 STRATEGY IN FUTURE ..................................................................................................................... 427 APPENDICES ................................................................................................................................... 435 GLOBALIZATION AND STANDARDS .................................................................................................. 462 INDEX............................................................................................................................................. 466 BRIEF GLOSSARY ............................................................................................................................. 471 GENERAL BIBLIOGRAPHY ................................................................................................................ 474
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ABOUT THE AUTHOR ...................................................................................................................... 486
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Acronyms
AIDS Acquired Immune Deficiency Syndrome ANC African National Congress AU African Union CEO Chief Executive Officer CFO Chief Financial Officer CHAMP Comprehensive HIV/AIDS Management Program COO Chief Operating Officer EU European Union FINDECO Financial Industrial Development Corporation GEC General Electric Corporation GM General Manager GMC General Motors Corporation HIV Human immune-deficiency Virus LAN Local Area Network MD Managing Director MMD Movement for Multiparty Democracy MINDECO Mining and Industrial Development Corporation MEMACO Metal Marketing Corporation MNC Multi National Corporation MP Member of Parliament NDF National Democratic Front NEPAD New Partnership for African Development NGO Non-Governmental Organisation OAU Organization of African Unity PEST Political, Economical, Social, Technological PF Patriotic Front RAPIDS Reaching HIV/AIDS Affected People with Development and Support SMT Strategic Management Team SRC Self Reticulum Criterion UDA United Democratic Alliance UK United Kingdom UN United Nations UNIP United National Independence Party UNZA University of Zambia UPND United Party for National Development
Integrated
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USA WAN ZADECO ZCCM ZESCO ZIMCO ZSIC
Billy Chilongo Sichone
United States of America Wider Area Network Zambia Democratic Congress Zambia Consolidated Copper Mines Zambia Electricity Supply Corporation Zambia Industrial Mining Corporation Zambia State Insurance Corporation
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Prologue
Hello! Sometimes I have wondered why Africa has lagged behind in technology. Only in Africa! Remember how for a number of days we were arguing over Chiluba's revelation of Kaunda's tunnels? It seems immaterial to me now. Carleton University has 11km of tunnels scattered under the University Grounds. They are mostly used in winter when Snow covers the ground. But they are equally useful for motorised transport for items such as food and stationery. One might wonder how things get to various departments. You rarely see trucks carrying food inconveniencing students going to "pound"∅. Well, for the last two weeks I have fallen for the tunnels, to the surprise of nationals who think I am nuts to avoid the "nice" summer sunshine "above". In my heart I know I have enough of the sunshine at home. The tunnels are amusing. In case I feel hungry down there I can stop over for a drink. Just push my coins or swipe my card and Bingo! The coke falls off. All automated. The outside environment is clean. In fact, Ottawa is the cleanest city I have come across so far. I was dumbfounded when I saw a machine picking up litter on the lawns! Talk about automation in the cafeteria and University bookstore or shops. Just use the University Card. It is like your Standard Chartered Bank Money link card. Well, I can "swipe" it for all sorts of things. I do not need cash. Swipe it for breakfast, lunch, laundry, T-shirts, books and a coke in the tunnels! Lecture Rooms. Computers and "telegraphic" screens all over. Art galleries with powerful sound systems. Rooms with voicemail Phones. Continuous warm water for a shower and water closets which remove issues within 2 seconds and refills within 10-15 seconds! I remember back home that ∅
“Pound” is a slang word for “serious study” of pulp, books etc, often used in Zambian academic circles especially at UNZA
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sometimes normal flushing does not work. Two or three additional buckets from the tub does the trick! Road safety. Respect for pedestrians; this is real here. A car stopping for you to pass. No Kaponya≠ to harass you when getting in a bus or train. No need for Kaponyas or conductors. Automated purchase of tickets. No one to check. No cheats. Want to be smart? Big brother camera may catch up with you! No smoke in the rooms or lecture rooms, toilets etc as a result of Kambilombilo or white stick. Smoke detectors everywhere. Come smoke and in the next ten minutes, the whole 20 storey building is evacuated. The other day we had to run down stairs. I suspect one muntu could have been smoking in the toilet. I may be wrong. Security Officers came within minutes. Anyway, they said one alarm system component was malfunctioning. The whole building was vacated. Lectures delayed. Imagine bringing 100 typical muntus here. It would be Chaos! When I was coming to the Lusaka Airport, I was irritated by this guy in front of us who kept throwing banana peels out from his vehicle. We have a lot to learn from these guys as much as they have a lot to learn from our religion. Performance Audit is good. Experiencing it in September may not be that pleasant. Namuso is certainly our focus now. At least in the next five years. Your performance will set the pace for other Canadian programs as well as other ADP∧s country wide. All the best! Chikondi
_____________________________________________________________ ____ Author: Chikondi Phiri 2002, Canada
≠
Kaponya is a call boy who patronizes bus stations, traffic lights selling different kinds of wares thus the phrase ‘Kuponya’ ∧ “ADP” stands for Area Development Program. These are World Vision’s large scale development programs dotted around the country. An average program, runs for between 10 to 15 years.
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Chapter one ?
Lake Kariba at sun set April 2007 “In a sense, strategy is enigmatic” B S Introduction to the strategic world Strategy! A word that repeatedly echoes from the lips of every competitively conscious person striving to get ahead of the pack or surviving a challenging situation. As students approach the examination period, how often we hear them inadvertently employing this six lettered word as they chart the best and most effective ways to success. Business people, too, have the word laced in their talk. Politicians on the other hand devise various strategies to woo as many voters to their side, even when they fully know that most of their claims are blatant lies. But what do all these people mean? Are they conscious of the seriousness of the statements they make? What about the implications of the words?
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In short, no one can avoid the use of or reference to the word “Strategy”, for we frequently use this word. Some examples include how we plan our days, weeks, months and years. How do we arrive at those schedules? Isn’t it because we intend to achieve something in a particular time frame? most probably. What about those successful neighbours and companies next door, how have they made it and continue to? The less exposed mind is prone to think that either superstition or corruption is at play. A close analysis of the said entities may reveal far much more than meets the eye. In some instances, none of the above adverse opinions hold water. The secret lies in the Strategies engaged at any given time. For instance, some companies like the Meridien BIAOξ have flamboyantly graced the banking horizon by suddenly offering unequalled super quality products or services, expanded at phenomenal rates and suddenly fizzled out into oblivion after making a splendid show. During the expansion period, the said “super entities” have far outstripped the traditional, conventional and somewhat conservative banks for a season. On the other hand, the traditional banks have either felt threatened, reacted or simply remained unwaveringly stuck to the seasoned ancient paths waiting for the storm to pass. Thus, they have maintained a stable base despite the odds. In some cases however, the rigid and bureaucratic organisations have been terribly under cut and fallen by the way side. In all the scenarios painted above, what exactly has been the silver bullet in the times of success? Consider the advert below, does it ring a bell?
ξ
Refer to the Post Newspaper of 3rd and 4th November 2004 for more insight into the Bank, Andrew Sardanis gives all the background details behind the collapse of the said Bank.
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A famous and familiar advert of the now defunct Bank in the April 1993 Profit Magazine # 1/11 In another case, confirmed paupers in one day have turned tycoons the next. In this dramatic scenario, some remain puzzled spectators at what has happened while others read the times, imitate and quickly progress by leaps and bounds into the corporate hall of fame. They have, as it were, curved their own unique path to success having meticulously watched the neighbour’s example. This theory can equally be applied to the area of studies as well. While those who previously made rapid academic progress without much ado are resting on their laurels, others have spent sleepless nights in the libraries despite repeatedly failing exams conduct self analysis scans and chisel out new successful routes while perfecting the past. Before the lax Kalulu (hare) wakes up, the tortoise will have long crossed the finishing line and progressed to something else.
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We could extend our thoughts to the development of the nations. If we ask, what makes one country succeed with meagre resources while one richly endowed with more than abundance remains firmly gripped in the firm abject poverty clutches? A case in point is Zambia and Botswana. These countries have different Gross Domestic Products (GDPs). For one thing, both Zambia and Botswana are land locked countries with similar conditions but one country has a higher GDP while the other depends nearly 60%χ on donor goodwill. The tragedy is that goodwill is an extremely fragile and tender plant prone to wilt, wither and die any time, thus unreliable. Between the two countries, Zambia has far better prospects in terms of arable land, fresh water (ground and surface), timber, abundant minerals, good weather, human resources and livestock potential. As a matter of fact, Botswana even harbours a desert! What could be the problem with the richly endowed Zambia, a country that has vast stretches of savannah grass land with millions of game littered all over its landscape?∠ Could it be a question of chokingly having too much to handle and not knowing where to start from? As some one⋅ has aptly quipped, its paradox that Zambia remains in squalor despite all the milk and honey round about. More food for thought is why Zambia, which receives far more foreign aid than Botswana, a weaker and comparatively fragile economy. The same holds true for Tunisia and Egypt. The latter receives at least $ 2 million free aid from the USA while former hardly receives any though both are in the Sahara desert. Yet Tunisia is far more prosperous!⊗ Another question that begs answering in that vein is why the Vatican City, a tiny city-country in the heart of Rome wields far more influence, power and money than the relatively larger Italy? What caused the mighty Roman empire to crumble when it was once the World’s most invincible nation? What has caused Zambia to slide to be one of the Highly Indebted and Poor Countries (HIPC) while South Korea has ascended to the higher orbs boasting the 8th largest economy in the world when in 1964, both countries had the same GDP? All these vexing questions can be answered by a proper understanding and implementation of strategy. Therefore, in coming to study strategy, we seek to answer a number of pertinent questions that affect us. Some of them will be why, how and when? χ
Source: Estimation by author as at 2002/2003 Refer to Dr Simeo Siame’s insightful article, “Development & Leadership” The Post, August 5, 2007, pp VI ⋅ Mr Hakainde Hichilema, 2006 ⊗ New African Magazine, March 2005 issue, letters section. ∠
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Further, we want to find out whether a particular approach can remain universally applicable and what ought to be done to avoid past pitfalls that often bug people and entities. It is hoped that your journey into the strategy tunnel will be worthwhile as we explore various routes together. Always remember, that this text is only but a guide and does not possess a magical solution to all the woes that affect you as an individual or organisation. Etching an appropriate best fitting strategy takes time, much more the managing and curving of a unique niche. To that end then, we welcome you to the vast and stimulating world of Strategy. ====================================================== Bibliography Bajema Duane, “Globalisation and the Christian community”, Pro Rege magazine, March 2006 issue pp 1 Cateora R. Philip, International Marketing, 9th edition, 1996, Irwin McGrawHill, Boston, Massachusetts, Burr Ridge, Illinois, Dubuque, Iowa, Madison, Wisconsin New York, New York San Francisco, California St. Louis, Missouri Central Statistical Office, The Evolution of Poverty in Zambia, 1991-1996, CSO, 1997
Chikwanda Alexander, “World Bank in Zambia”, The Post, Friday January 2, 2004 Cohen J. Herman, “Free markets: Economics and politics”, TOPIC, issue # 195 20
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Hielema Sydney, “Every tribe, language, people, and nation”, Pro Rege magazine, June 2006 issue Holt H David, Entrepreneurship: New Venture Creation, Prentice-Hall of India private limited New Delhi, 2006 Kotler Philip, Principles of Marketing, Prentice Hall, 11th edition, 2005 Langdon Ken & Bruce Andy, Strategic thinking, Dorling Kindersley, 2000 McCarthy E. Jerome & Perreault D. William Jr, Basic Marketing: A GlobalManagerial Approach, 11th edition, IRWIN, Homewood, IL Boston Oakland S. John, TQM: Text with cases, Butterworth-Heinemann; 3rd edition (June 2003)
One Country, “The Ethics of Globalization: A Bahai perspective”, Bahai International Community, April-June 2003, New York. Siame Exhilda, “America is not the beauty and splendour seen in the movies”, Sunday Times of Zambia, May 12, 2000 pp 5 Siddiqi Moin, “Attracting the foreign investors”, African Review, April 1998 issue pp 17 Steger B Manfred, “GLOBALIZATION: A very short introduction”, Oxford University Press, 2003 Townsend L Patrick & Gebhardt E Joan, How Organisations Learn, Financial World Publishing, 2001
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Watts Michael, What is a Market Economy? The United States Information Agency, June 1992
Weekend magazine, September 28-October 4, 2004, GALADARI Printing & Publishing Young Steve, GREAT FAILURES OF THE EXTRAORDINARY SUCCESSFUL: Mistakes, Adversity, failure and other stepping stones to success, Jaico Publishing House, Mumbai, Delhi, Bangalore, 2007 Zimbabwe National Tourist Board, Victoria Falls, The Victoria Falls Publicity Association, Zimbabwe
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Chapter two
“An eagle’s eye sees far and wide” BS Strategy over view Strategy is a word that was once exclusively used in military circles as it referred to the systematic deployment of defence forces and artillery in the most advantageous position relative to the enemy. The military first studied the enemy movements and then set up clandestine operations to outwit the foe. In crafting the witty manoeuvres, the military also looked ahead, anticipated any surprises and placed safety gadgets long before anything unusual happened. In that way, the army was not only proactive but it positioned itself where the enemy had no option but to fall. One of the strategies may have been to threaten the opponent by a large force (i.e. Army, Navy or Air force), superior weaponry or simply gather as much information about the enemy and surprise them by hinting that you were aware of their plot before they even took the first step. The case of David and Saul in 1 Samuel 24 comes to mind. Today however, the yester year strategies of gigantic defence forces may still be valid to some extent but the world has moved on to use robots at the battle front. In other places, it is not the size of the weapons that matters but the lethal nature of what you possess. Saddam Hussein (with his right hand man, ‘Chemical Ali’) once extensively used poison gas as opposed to the conventional huge tankers and cruise missiles to quickly slaughter hundreds of thousands of Kurds. In other words, biological weapons are more lethal to humans leaving vacant and cadaver infested erect building shells. We do not have time to think about nerve gas, nuclear war heads and laser guns. In a similar fashion, “strategy” has come to be used in the business world and in other circles to describe the plans, intents, tactics and desires of an entity to yield the best results in a given context. This holds true in all circumstances whether at the personal or organizational level. Further more, this reflects in the nations that are able to peer far into the future, project and
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immediately begin to work in order to eke a unique path for themselves. Put differently, “strategy” in post-modern day parlance has assumed a more general usage though the principle remains the same. Note that, a strategy is both reactive and proactive in scope and design. Another point worth noting is that strategy, like other processes, is a journey not a destination. It is achieved by small but well calculated progressive steps. But what constitutes a strategy? How can one be formulated and sustained so that the entity is constantly above board? Admittedly, it is difficult to give the answer in capsule form but a number of considerations will be handy at this stage. The first thing that must be clear in the strategic person’s mind is to establish what the prevailing situation is as well as the desired haven. In doing this, the entity performs some kind of scan and research into what is obtaining and then respond by applying the best reactive strategy to the current while in the same breath formulating the long term strategy that curves out a unique niche, practically inimitable by rivals. This calls for brutal honesty. The short-term reaction is meant to mitigate immediate impact from the outside while the long-term plan is meant to turbo the entity to higher orbs. For instance, if a person wants to excel in the upcoming examinations, they first assess their current performance status measured against the accepted standard then proceed to rectify the immediate root causes for the dismal performance while aiming at the final exam as a longterm goal. The immediate reaction serves as a basis of self-evaluation via tests and attempting relevant past examination questions. As for the longterm strategy, the student summons more materials, links up with other students, studies more, attempts past question papers, and perhaps even engages in extra lessons in certain courses or subjects they may be weak in. In that way, they are aiming for the ‘big one’ at the end of the semester or year as the case may be. Often times, brilliant students fail to excel as expected because they tend to focus on the present only rather than the distant future as well. For instance, they do not see the need for extra lessons or attempting past exam papers. Ideally, the papers are for examination preparation purposes. Perhaps that explains why very few geniuses reach professorship level as they easily get bored along the way or rest on their laurels, no longer disciplined to settle for back wrecking strenuous study. The weaker students on the other hand tend to be apprehensive and embark on serious preparations long before the exam dates so that they are adequately prepared. Another pitfall for brilliant students is that they are not very focused because they do not know what exactly their core competence is. Since they are multitalented, they do not focus on ‘one thing’ at a time. 24
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At the organizational level, an entity ensures that it positions itself in the best possible place to maximize benefits from the obtaining situation. In other words, the organization selects a portion that will ensure that the organization fits well within the environment. To arrive at a strategic position, the entity undergoes many changes that must be closely monitored. As we proceed, we shall be opening up some of these steps for us to appreciate. Of prime importance, the corporation must first realize the necessity of strategic change. A general dissatisfaction on the present performance levels must be created and deeply felt by a critical mass in the enterprise. In addition, there must be a sharp conviction that the organization could do far much better. Ever heard of the ‘Fosbury Flop’? For a long time, high jumpers thought they had used all the jumping methods in the book until Fosbury came along in the 1968 Mexico Olympics. He scaled the previous record by a clear 63 mm! He introduced an improved jumping technique. In the same way, organisations must realise the need to constantly improve performance and then proceed to nurture a culture within the corporation that compels every one on board to be forward looking. There should be a fervency generated within the organization that contagiously spreads to all and sundry. This comes by continuous training and having the right leadership mix on board that keeps pointing to ‘the mountains’ where the organization is headed. In short, the human resources directorate (where applicable) must be equipped and psychologically prepared for the daunting task ahead. In addition to a deep felt need to change, the entity must then carry out an environmental scan where it evaluates the environment in which the organization operates to identify both the present and future strengths, weaknesses, opportunities and threats that confront the entity. In that way, the organization establishes exactly what is happening round about, the trends and the possible strategic futures the organization finds itself in. This SWOT analysis takes time, concerted effort, cohesive, active and observant team work. A good database is key. The captured data is stored for present and future analysis. This environmental scan is divided into three parts, namely: a. The internal environment. In this segment, the organization introspectively looks at itself in terms of how the members on board 25
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are taken care of, their performance, motivation levels and whether they voluntarily continue exerting themselves at all times. Most organizations, whether large or small, unfortunately fail at this point. The smaller entities suffer from interference, chronic cash flow problems, weak employee management policies, and unclear procedures among many. The Larger organizations on the other hand, suffer from bureaucracy, impersonal approach, are generally top heavy and too slow in responding to the individual staff needs. Usually, hierarchies hinder rather than foster a sense of belonging or impede warm teamwork culture evolution. In other words, the Human Resources (HR) unit among many things, should have a professional function of hiring the best known quantities, motivate and ensure people are nurtured from mere blunt wood pieces into swords, demonstrate confidence in people by encouraging them, manage talent and offer a buffer zone for safety. Unfortunately what obtains often in these functionary offices is that the HR is merely an entry and exit point for people. Despite the importance of the HR function, the department is not given due recognition, especially in technological organisations. This is the case World over. In other words, the HR department is a point where one gets into the organization, diffuse within the entity akin to one entering large countries like the United States, where they instantly vanish into the crowded concrete jungles! In many cases, people look up to the HR for only pay rises or other necessary staff benefits. Apart from that, they would rather keep as far away as possible from that function. Once they enter the organization, they disappear into the crowd only to be fished out when their job is on the line. That is what obtains in many companies today rather than spending more time looking out to hire the best talent while satisfying the present employees. The other function is that HR should tactfully develop various employee strengths and then put them in the right positions akin to what an ideal coach does in a football team. Former Chelsea coach, Mourinho was a legendary guy. He knew his team well and enthused the club towards repeated success. As far as he was concerned, his team was the best in the world and that paid off. Put differently, there should be a cordial atmosphere where HR and staff relate in the best interest of the organization. But that’s not all in terms of the internal environment analysis, the other area to be meticulously watched should be the marketing side. Are the right people in place? Are the internal customers (employees) satisfied to the point of voluntarily marketing the organization? What about the organization 26
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as a whole, is it well marketed? What about its image, goodwill, products and services are they in tip top condition? If the marketing side is weak, then the sales will inevitably decline, customers will gravitate towards rival companies and in the end, the organization’s market share slides. Said differently, the organization must inherently be well marketed within and outside the organization for it to surmount all threats. That brings us back to the HR function that should technically be part of the marketing department as they carry out the internal marketing. In some progressive companies, they have an internal marketing department! The SHOPRITE Checkers group of companies is such an example. A negative example is a well known Bank in Zambia that scandalously pays ridiculous wages to its staff despite raking in billions per month. This is a sure way to kill your company morale and image. Is it any wonder that this Bank is fraud ridden? In the real world however, most organizations care more about the corporate image and machines at the expense of the employee welfare. In a competitive world market, the entity should be deeply and cohesively interwoven to the extent that quality marketing intertwines all threads that keep the organization together. Quality should virtually become invisible as it were, since it has been internalised. b. Another aspect in the internal analysis relates to watching of the operations. This entails the organization puts itself in a test tube to ascertain whether the present operational levels are functioning at the ideal optimum levels and guarantee success for the organization. In doing this, the organization honestly checks its policies and internal controls. These are designed to ensure the organization is not only swift, agile, efficient, lean, responsive and flexible but that it is easy to reposition to get the best results. Further, the organization ensures that quality delivery systems are in perfect shape with total quality techniques internalised. In one organization, an out going Director once remarked “…the problem with our organization is that its internal controls are too rigid and in the end work against our efficiency levels…” This shocking statement stunned this author because he had thought that the person had been a zealous expert advocate of the said “red tape” controls but alas, she lashed out at what she had apparently vehemently propagated all those years as Finance Director. The good lady categorically stated that controls, though good in and of themselves, tended to frustrate rather than foster efficiency in that particular context. One 27
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wonders whether it was blind loyalty turned sour at job loss. That notwithstanding, operational analysis extends to the staff position reviews to come up with the best structures able to efficiently deliver in the given environment. For instance, one of the areas to be evaluated will be the efficiency with which the organization transacts with suppliers, how much swifter the organization is in relation to its competitors in the same market as well as how well the customer is catered for and continually satisfied. Operations, in many a company is the core business of the organization and dares not be slothful or naïve with the rapid environmental changes taking place. Put differently, in evaluating the operations, we seek to answer the questions “Are we delivering the goods on time?” Further, “are we doing it efficiently and effectively to the satisfaction of our customers?” For it is one thing to be busy working away and it is quite another to work and hit the target at the right quality and time. An ideal corporate structure is key. c. The final area needing evaluation is the external environment in which the organization orbits. To remain buoyant, the outside world must be meticulously watched because these impact on the organization in myriads of ways. Some of these things actually favour the rivals thereby enabling them to ascend to higher orbs at the organisations’ expense. The major issues to be watched are the economic, ethical, political, legal, religious and social climate of the nation in which the organization operates. For instance, the legal climate may hinder expansion for the multinational organization unless a certain percentage of the natives are co-opted into the partnership. In other cases, the government may pass laws that lead to expropriation or in extreme cases, confiscation. On the other hand, the political climate may not be right for business and does actually affect the organization. In such a tense atmosphere, free trade is hindered. In other instances, the political leaders wield too much power that the shaky economy is brought to its knees. The politicians choose who to support or who to bring down. In developed and larger economies, political interference is not that significant though still present. In a scenario like the one painted above, the organization should ensure it is on the right side of the politician (politically correct) as much as possible lest the organization be routed. Ethical matters are relative from country to country and organization to organization. For instance, in some organizations, kickbacks and tips are perfectly normal, acceptable and expected while in others these are seriously frowned upon. This is a paradox but must be carefully negotiated with to remain afloat. As can be observed, the organization exists in a real hostile world where competition and dynamism are the order of the day. It must remain buoyant 28
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at all costs still. Thus, the firm must of necessity undertake a regular self review so as to strategically position itself in the right place. That general over view of the Environmental analysis suffices for our purpose, we now proceed to consider the third aspect of strategic building blocks as laid out in the ensuing paragraph. Having realised the necessity of strategic change and carried out a scan, the corporation establishes direction. The firm must know where it has been, where it is and where it is going lest it tumbles over a precipice. It is crucial to know the direction and set benchmarks that will indicate where the organization is headed at any given point. In other words, the organization closely follows the wind vane and responds accordingly at full throttle. In arriving at an organizational direction, three ingredients are commonly used to establish the way namely: Vision, Mission and Objectives. We attempt to unpack each of these ingredients as we clear the path, though briefly. a. Vision- this is desired outcome viewed from the present podium. In other words, the organization states it goals, its direction in more general terms. The question asked is “What do we want to create?” If the desired haven is stated clearly, the organization begins to fashion all its members towards that goal so that the objective is achieved without much ado. For instance, if the organization desires to produce quality goods and services, it will ensure all the delivery systems guarantee quality results. Usually, the organizational dream is arrived at after much brain storming by all concerned and then the strategic management team refines the vision statement as well as make sure all the essential gadgets are put in place to ensure the vision is kept alive. One of the characteristics of a good vision is that it is realistic, forward looking and not time bound but on going. Remember, this is a perpetual dream. b. Mission- The mission is derived from the vision and is a more refined and elaborate statement of purpose. At the Mission statement level, the main question asked is “What is the purpose for the organizations’ existence?” In other words, the organization seeks to justify its existence and at the same time declares its real identity to the world. At this stage, the organization states its location, core values and the market in which it seeks to effectively operate. c. Objectives- the organization, having stated the vision and mission statement then formulates its objectives. Objectives are specific targets to which the organization directs its efforts. Lack of having 29
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objectives weakens not a few organizations because they shoot far and wide off range without the faintest clue that they are wasting their bullets! Objectives have a sobering effect in that they help the organization to stay focused and on course. As can be seen, the organization ensures that it holds those threefold ingredients in tandem as it hurtles along at full throttle. But the question that begs answering at this stage is how can this direction be practically set by any organization? Is it critical to have the direction set out any way? This is by no means a simple question but it is true to say that based on what is happening in the environment as well as the anticipated customer tastes, it is possible to etch out a direction. Remember, where the carcass is, vultures will gather.
Vultures patiently waiting to devour a carcass… If that is true, then the firm should be among the vultures except that it should ensure it is the King vulture that takes the lead and grabs the largest share possible! As the organization is being formed or changing strategy, it is crucial at that stage to think through what it is about to embark on and what will be involved. It is equally crucial that as many stakeholders as possible throw in their lot so that it will not be a topdown issue. The stake holders in this instance could be the internal and external customers. In that way, they will identify with the organization and thereby support it to the very end. One way to draw every ones’ attention is to generate some excitement in the organization using different methods that includes contests followed by brain storming sessions. In the said storming sessions, let everyone be on equal footing from CEO to lowest operative. Let brainstorming be performed in an
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informal setting where all the titles are laid aside and every idea, no matter how crazy, is put on the table. A question could be posed and deliberated upon while points are recorded. From these notes, the strategic team will get a feel of what and where people are. After the session, the said contest could be instituted with an attractive prize promised for the best vision or mission statement. After the contest is over the strategic team shortlists the best ten for instance and brings them to the brain storming session once again without further debate. At this stage, the names of authors are with held so that objectivity can reign. After the best is selected, the SMT takes the best composition and refines it and then reward the winner. In this way, a Vision and Mission statement can be synthesized. This is but one of the many ways to setting a direction, bearing in mind the outside dynamic environment. We trust this basic over view gives a bird’s eye view of the entire strategy landscape. We have much ground to cover together but it is worth it none the less. In the next chapter, we define terms so that we have a common understanding right across the book. Much wisdom is encased in the subsequent chapters but only appropriated by reading through the text. ====================================================== Bibliography Banking world October 1992 Bower, Bartlett, Uyerterhoeven, and Walter, Business Policy: Managing Strategic Processes, 8th Edition, Richard D. Irwin Campbell J David, Organisations and the Business environment, Butterworth Heinemann, Oxford, Amsterdam, Boston, London, 1992. Certo C. Samuel & Peter Paul J., The strategic Management process, Austen Press/Irwin, 3rd edition, 1995 Hill W Charles, INTERNATIONAL BUSINESS: Competing in the global market, McGraw-Hill, 4th edition, 2003
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Hill W. Charles & Jones R Gareth, The Strategic management theory: An integrated approach, Houghton Mifflin, 2001, 5th edition Mandaza Ibbo, Social development, SAPEM, vol 7 # 9, June 1994 pp 29 Mishler Lon & Cole Robert, Consumer & Business Credit management, McGraw-Hill, Boston, Massachusetts, New York, 1998 Nawa Macwani, Organic farming: Theory and practice, GART yearbook 2003, pp94 Oakland S. John, TQM: Text with cases, Butterworth-Heinemann; 3rd edition (June 2003) Steger B Manfred, GLOBALIZATION: A very short introduction, Oxford University Press, 2003 Townsend L Patrick & Gebhardt E Joan, How organisations Learn, Financial World Publishing, 2001
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Chapter three
War planners at work “Strategy is refined by practice” BS Strategy, its nature and definition What exactly is strategy? The question at hand invites many answers to which we endeavour to direct our effort in this chapter. We have already briefly stated what strategy is according to some authors but in this chapter, we venture to look at it in more detail. Admittedly, the precise definition for “Strategy” is elusive to comprehensively state or formulate as a lot of variables are at play. This is because Strategy, in its intrinsic essential nature, is cross cutting over a wide range of disciplines as well as perceptively varies from place to place. Truly, strategy is derived from many disciplines and defies any given boxed shape and size. However, loosely defined, “Strategy is that comprehensive plan whereby an entity sets objectives and curves out a unique path to achieve that goal(s) in the most efficient, economical, timorous and effective manner.” xIn other words, the question at the back of the strategist’s mind as s/he launches out, is how to reach the desired haven without much ado as well as outwit potential rivals. In short, right strategy minimizes risks or hurdles and maximises the potential yield. One author has defined it as “a declaration of intent, defining where you want to be in the long term.”
x
Definition supplied by author.
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y
Another person has defined strategy as “…plans towards an intended end”z. “Strategy bridges the gap between policy and tactics” says Fred Nickols. It is drawn from a Greek word “Strategia” denoting “general ship”. In other words, these are proposed avenues towards a desired destination. In strategy talk, the question asked is: “Where do we want to be in X years time?” and “If we are to arrive at our target by the Xth year, how are we to get there? What steps shall we begin taking now in order to get there?” In a nutshell, strategy primarily concerns itself with what is ahead, looking at where you are going, and how best to get there. It is equally true that short term strategies may be used to correct a situation but in its general usage, strategy is forward looking.
We can once again safely reassert that strategies are derived from the word “Strategy” or “Strategos” refers to the “Art of the General” as highlighted by that strategy guru, Dr Bill Cohen in his legendary book, “The Art of the Strategist”←. According to John L Thompson, strategy is “the means by which organisations meet, or seek to meet objectives. There can be a strategy for each product or service, and an overall strategy for the organisation.” ÷ Perhaps a brief historical perspective of Strategy is fitting at this stage. As earlier intimated, the word “Strategy” was originally exclusively used in military circles as they planned combat on how best to outwit their enemies. Among many things, this involved the meticulous study and analysis of the enemy manoeuvres, their strengths and capabilities. Having mastered and known the enemy fairly well, the military then crafted plans countering the enemy sleights gaining superiority in the short and long run. Over time, the word took on a more general tone as it was adopted in the business world in relation to the highly competitive business environment. Today however, the word has a universal application in all spheres of human endeavour. Andy Bruce and Ken Langdon in their book “Strategic thinking” have excellently captured the historical aspect when they stated that “Strategy was once defined as the art of planning and directing large military movements and operations of war” ♠ A diagram best summarises strategy:
y
Andy Bruce & Ken Langdon, “Strategic Thinking” pp 6 Anonymous ← pp10 ÷ John L Thompson Preface PP X “Strategic Management, awareness and change” ♠ Andy Bruce and Ken Langdon “Strategic thinking” pp6 Dorling Kindersley 2000, London, New York, Sydney, Delhi, Paris, Munich & Johannesburg z
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Strategies
A (Start point, where we are now)
B (Desired destiny)
©Billy Sichone 2005 “Strategy is the vehicle that takes us to our destination” BS In practical terms, strategy takes various shades and shapes but the principle is to get ahead of competitors or remedy an immediate crisis. For instance, 1992 signalled the rapid change over of the Zambian economic structure from a strong command economy to a liberalised modern environment as the economic flood gates suddenly flung open, nay the dam wall collapsed and water gushed out with a mighty force, what a disaster down stream! It caused serious untold destruction down stream!
The side holding back the water The other side of the wall The Kariba Dam wall holding back millions of gallons of water daily for the past 50+ years The unblocked economic valve and sudden economic change over was unexpectedly too over-whelming and caught myriads unawares. Those that anticipated the dynamic changes that would ensue as a result of opening up the economy prepared well long in advance. The drastic economic mutation whirlwind flattened many uncompetitive parastatals that were obese, torpid, flaccid, inflexible, bureaucratic, top heavy and rigidly slothful. The relatively more fluid entities free from the archaic management tendencies
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made super profits for a season. Their honeymoon was however short lived because the hefty multinational investors soon arrived on the scene with their often superior quality products and services which were often better and cheaper than the locally manufactured brands. To remain buoyant then required a different strategy. At that stage, we saw “the separation of the men from the boys” as an old adage goes. Some of the rapid liberalisation ramifications included the rapid closure of many defunct parastatal and private firms, the rise or fall of many banks, massive job losses due to privatisation, high inflationary trends as well as high unemployment levels. Although these were adverse situations, the smart strategic eye saw and seized opportunity after opportunity come and pass by. That explains why some people today are astonishingly filthy rich while the vast majority of Zambians needlessly still wallow in abject poverty from that era. Strategy made the difference. Perhaps our children will be better prepared in future as the worst is now hopefully behind us. A strategic entity is one that sees the star of Bethlehem and swiftly pulls together towards that end. Indeed, it galvanizes, and efficiently gravitates towards the star. In other words, the leaders at strategic level do not float around in isolated unique orbits but sensitise every one on board to take a look at the brazen serpent where life is (Numbers 21:9; John 3:14). The star of Bethlehem (Matthew 2:2) moves as they diligently pursue it until it stops at the desired haven, although strategy is a means to an end, not the end in itself. As some have aptly quipped, strategy is a journey not a destination. That unique star is a guiding principle that captures every ones’ attention, radiates hope and causes people to reach out for it. Once the people see the shared star of life, they do not idly sit around and wonder but rather, promptly pick up their bags and swiftly move, for day light fast approaches when the star will not be visible to the naked eye. Only a wholly strategic entity ensures that the internal customers (teams) collectively see the star, identify with it, buy in and at once pursue it with all due diligence, vigilance, resilience, resolve, pathos, passion, fortitude and determination. For the people to reach such a conviction, they must first seriously and consciously buy into the star idea, believe it will lead them to the gold mine and come away having procured and stashed away the long sought after gemstone. The strategist does not take any step unless his/her strategic instincts clearly indicate that the pillar and cloud have moved (Numbers 9:22).
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B
A Courtesy of James Mateyo 2005 Which way to Point B the quickest? Having briefly laboured on the strategy definition, we now proceed to briskly define “Management” in capsule form. Akin to the strategy definition, “Management” is a compound word equally difficult to adequately define or box in a word. Thompson has defined it as “the process by which an organisation establishes its objectives, formulates actions designed to achieve these objectives in the desired timescale, implements the actions and assesses progress and results”∂ Said differently, management has to do with the leading, directing, controlling, coordinating, planning, motivating and delegating roles. It (management) is related to the prudent harnessing and administering of resources, human or otherwise. Several schools of thought have pondered over this subject but suffice it to say that management broadly falls into at least three categories: Traditional, classical, modern and post-modern. Being a dynamic field, the management trends have been changing over the generations although the principles remain essentially the same. In Zambia, management is largely traditional and status driven, although the trend is rapidly changing. Seasoned people like Mr Andrew Natsios, now a potent academic gives us his principles after vast years of rich hands on management exposure in the excerpt below: Principles of Management
∂
Thompson PP X
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Below are some practical management principles that apply for all organizations from a renowned World Vision Management guru: The Andrew S. Natsios Management Principles On Wednesday, May 2, 2001, the Administrator held two meetings with USAID's Washington employees at which he shared his Management Principles, repeated below. 1. Integrity is non-negotiable. Tell the truth. Keep your promises or don't make them. Compromising ethical standards is a short road to trouble. 2. Get all the facts before making decisions: do not make assumptions based on rumour. Rumours are usually wrong. 3. Practice transparency: management by intrigue is a sign of weakness. Game playing reduces public trust and the confidence of our employees and colleagues. Discipline yourselves; you are part of a team. 4. Decision-making should be based on the merits to the extent politics allows. Remember we serve the public interest and the common good. Do what is right. 5. Determine your core constituencies and political supporters and stay faithful to them. Cultivate Congress in particular. 6. Pay attention to the news media or it will drive your agenda in ways that may not be helpful. 7. While good process is important, what ultimately counts is getting the job done. Process should generally be subordinated to policy and task completion, not drive it. 8. Focus on the long-term over the short-term. Think strategically. 9. Public policy most often fails at the implementation stage. The devil is usually in the details.
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10. No surprises. Anticipate problems before they become crises; remember the earlier you address a problem the greater are your options and the more likely you can solve it. 11. Use the chain of command. I will too, for decision and action. For information only, I may not. I will randomly call people for information outside the chain. 12. I have an open door policy. I will not shoot the messenger of bad news. 13. If you hire the right people, other organizational problems will disappear. If you don't hire carefully, your problems will multiply regardless of the organizational structure. 14. Keep simple your programs, structure, and processes for doing business. Excessive complexity leads to confusion, paralysis, and muddle. 15. Focus on a few clearly defined and achievable objectives and drive the organization to achieve them. Do not change them constantly or select an excessive number or your subordinates will get confused and the organization will wander. 16. Get your rest and balance your workdays. As can be seen from the seasoned manager, good resource administration is a critical component in almost any entity, no matter what size it may be. Recent thinking suggests that the best resource and asset to any organisation is the human component but sadly, in practice the reverse appears to be true. For many an entity, the most critical element seems to be the financial rather than the human or connectivity. Every time the top Management meet, 9 out of 10 of the times, the balance sheet and present cash flow occupy a good portion of the agenda. On the other hand, the human resources motivation or capacity building agenda is scarcely discussed unless a disciplinary issue is brought to the table. But this ought not to be the case in any modern entity for it is people who make up the organisation and by that token make things run. Further, the Human Resources department (HR) has the duty to create a conducive environment where people freely float around safely within the organisation as they do their work, build capacity and progress in their 39
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careers. Sadly, many HR departments are only used as entry and exit points in many organisations. Once people get in, they vanish into the crowd unless they are on their way out, processing their leave forms, payroll queries, loan negotiating or sponsorship lobbying. Many organisations suffer high staff turn over partly because the employees do not see a future for themselves. They do not receive any kind of motivation or accolades from the significant others and as such look for the earliest exit out of the entity. The sooner the human resources issue is sorted out, the lower the staff turnover rate. In a sense, the HR makes or wrecks the organisation. One seasoned retired HR practitioner recounts how he often was at daggers drawn with the CEO as regards staff motivation and retention and yet when faced with a strike, the said HR manager was always put in the “frontline” to bite the bullets on behalf of management. The “Fall of Quest” case on the website below is instructive and makes interesting reading. It simply highlights the potency of the HR function: http://www.nwlink.com/~donclark/hrd/case/casequest.html But other issues exist in Management as well. These include the aspect of managing financial and other resources such as corporate image, brand names and ensuring quality standards are adhered to. One of the key elements that help an organisation operate well is proper internal controls. Where inadequate or weak controls exist, there you see a proliferation of problems where operatives are repeatedly dealing with the same recurrent problems. Further, weak internal controls also suggest potential trouble to auditors. The author once worked as an Accountant and recalls just how strong and good internal controls made a world of a difference as they regulated the use of resources as intended thereby minimising abuse. Another critical element in the proper management of an entity is the management style imbibed by the leader. If the Manager is a solo operator, then trouble shortly creeps into the organisation. But if the Manager is both a team player and builder, the management is made easier for everyone. There is synergy in team work. As people work together, with one purpose, a shared vision, aim and resolve, everyone achieves more both in their individual and corporate lives.
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Strategy types℘ It is fitting to mention that different strategies are applicable at different stages of organisational development. Often when we think or talk about strategy in the business world, we usually focus on defending our turf or ways of amassing as much market share out of competitors. But each company needs a uniquely appropriate strategy contingent on its development stage. Briefly, organisations need strategies such as: Set up strategy (at launch), Growth strategy (organisation development and market expansion), Buoyancy strategy (maturity and regeneration), Exit strategy (decline or diversification stage). These and many more strategies come handy. You need to establish at what stage your entity is at to implement a meaningful relevant successful strategy. The above mentioned strategies can further be refined into: a. Intentional. These are deliberate conscious strategies that the organisation undertakes in order to deal with a threat or develop a competitive edge over other rivals. Stakeholders deliberately block out time to brainstorm, plan and refine the silver bullet to be used in the various circumstances. b. Emergent. These are strategies that are developed as a pattern of behaviour so that the organisation counters or reacts to the rival antics. These manoeuvres include among many things, adjustments to the intentional strategy so that the organisation can increase its relevance, agility and response to the rapid changes in the market. The said strategies have a strategic impact on the organisation. These emergent strategies are employed when the organisation faces new and unforeseen environmental changes. Mutations are inevitable as the entity ignores them at its own peril. The said strategy modifications are developed while the intentional strategy implementation is already in motion. This presupposes that there is already a strategy in place being pursued but due to the rapid environmental dynamism, it becomes necessary to amend or in some extreme cases mutate the whole strategy so that the organisation keeps on the success trail. After a meticulous surveillance of ℘
Sttrategy can be studied and viewed in atleast threee ways as Professor Arnold Hax has ably shown; He synthesisezs them as 1. The Competitive strategy view that focuses on the industry (Porter), 2. The Resource based view which focuses on the corporation and the Dealta mdel that focuses on the extended enterprise.
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the environment, the organization concludes that the once potent strategy is obsolete and diligently makes the necessary changes. Emergent strategies are in one sense reactionary but in another proactive pointing to the same strategic future while maintaining the same overall goal. It means therefore that the organisation must not be one track minded but single minded. It further entails that the organisation must not be destructively rigid but be lean, fluid and ready to frequently rapidly mutate. Some of the circumstances where emergent strategies could be employed are in highly economically turbulent times. These are times when the environmental dynamics are extremely fluctuating. For example, times of high inflation lead to the rapid cash value loss, frequent price and exchange rate flactuations, unstable political & legal changes. Value changes need a continuously mutating strategy that factor in all these parameters so that the organization does not at any time lose out. Mintzberg first championed this concept partly because in the real world, strategies rarely remain fixed over a long period of time. What might have been the silver bullet in yester years may actually be the dagger that fatally pierces the organization. According to Mintzberg, emergent strategies arise from observing a pattern of behaviour adopted having strategic impact both on the organisation in question or the environment. These strategies are initially not part of the original planΛ. This therefore means that no strategy is 100% deliberate or 100% emergent but a healthy blend carries the day. On an individual level, the same principles apply except that the person frequently makes the final decision independently, with a little or no advice from friends and folks. In the developed world, a person makes hundreds of decisions in a day whereas the person in the middle of the Kalahari Desert (South West Africa) hardly makes any major decision for weeks on end while one makes myriad of decisions due to the fast paced advanced life, the other can afford to go to sleep with one major decision per month. A classic example is that exhibited in the movie “The gods must be crazy” that hit the screens in the nineteen nineties. The said film aptly depicts different life paces between Africa and the USA, what a stark difference! That said, the organisation ensures that it only mutates in its processes when smoothening the way business is done lest it runs the risk of not having a strong resonating image. In other words, an organisation must be known and
Λ
Refer to the ACCA study text “Professional paper 12, Management and strategy” of July 1996 pp28
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identified by something unique. We briefly consider a practical strategic man in the write up below: From rags to riches- a case study Often times, many of us think that the possibility of rising from scratch to financial prominence belongs to the fairy tales era. Secretly, we harbour strong reservations about the probability of sudden or even progressive success. We think that is next to zero. But case after case presents itself here in Zambia, not only from the famous “land of opportunity” (USA). Most of us figure that one either inherits wealth or is luckily positioned on prosperity’s path. Others think theft and clandestine activities only lead the way in modern Zambia. If any one is rich, we stigmatise them with Satanism or slander them making people believe that the rich have pulled illegal quick ones. Be that as it may, wealth is not always associated with luck, trickery or some clandestine activity.
Consider the case of Mr Constain Chilala, the grand farmer in the Mkushi block. Today, the man is perhaps the wealthiest Zambian alive and yet going back into his profile reveals that the man has scored success after success from scratch. His risk taking antics have repeatedly paid dividends for him and his. Oral tradition has it that Mr Chilala hails from a polygamous family where his relatively wealthy father owned cattle and some properties. The man (Chilala senior) made sure that his progeny learnt survival skills early in life and went away equipped to face the world and conquer what ever odds would confront them. Constain enrolled to study a degree in Agriculture at the University of Zambia but did not complete. Instead, he determined to start up his own farm from scratch. With the little acquired knowledge, he launched out. People thought him crazy and cried him down given that a semi graduate those days had next to automatic employment and subsequent rapid ascendance up the corporate ladder. Thus he was a hot cake 43
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but Chilala forsook all that and fixed his gaze on applying himself to the limit. Having no land of his own, he negotiated with his father and settled on one of his father’s two farms. Later, the man decided to emigrate northwards to the Mkushi farming block which was an almost all white farming region. He bought a small piece of land and commenced cultivating using a borrowed dilapidated old tractor from his father. As years rolled by, the man prospered and bought surrounding plots of land, in keeping with the annual increased acreage cultivated. This trend continued year after year to this date despite the hard and difficult years he contended with at every turn. He persevered through them all and this explains his present affluence. Year 23 etc
Year 13 Year 8 Year 2 Year 1
Systematic expansion of the Chimsoro empire over the years Today, the man is by far the most powerful and influential business man in the country though he still feverishly works like a slave to sustainably generate more wealth. It is said for instance that he determines the market price of certain farm products, arising from his acquired multiple economies of scale. This trend has irked many in the business, but then, what is a market economy for? When one first meets the rather simple looking gentle man on the street, one scarcely notices him as the famous magnate. For another thing, Chilala has maintained the iron discipline of steady hard work and ensures he passes on the mantle to the next generation. Idle time is a luxury and as such, the man is entirely devoted to his vocation to the exclusion of all other temptations such as jumping onto the political band
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wagon that is so common in these degenerate days once some one has a little more cash above average. There is no stopping Mr Chilala from ascending to higher heights today or tomorrow. Let us take a leaf and seriously consider farming as a business while we are still young and energetic. Its not magic, but resolute hard persevering work that ultimately carries the day.
c. Reactional: These strategies are all meant to correct a situation or avert a potential adverse event. As this book unfolds, some of these concepts will become manifest especially the emergent strategies as propounded by Mintzberg. Strategy levels Strategy often takes place at different levels on the industry. Each path taken has its own attendant pros and cons. Some strategies encompass the entire organisational goals while others are departmental. Although it can be argued that strategy, in its essential nature, is the same, it is however necessary to further smoothen the strands so that we can streamline and follow through. Below are the strategy level strands: • Corporate level. This refers to the umbrella strategy that the entire corporation adheres to. This strategy gives the direction, pace and routes to be pursued by the entire corporation where ever it has spread its tentacles, at national, international or global levels. This also means that all sub strategies fit into this one main strategy, what ever their objectives. In other words, when the various operatives are crafting their sub strategies for their departments, they must be cognizant of the overall goal and dare not make any plans at variance with the ones the organisation has established as its beaten path for that particular period. In a nutshell, the corporate strategy is the over arching scheme that the entity resolves to pursue in the quest to hit the bull’s eye, as it were. • Business level: This refers to the strategies developed to ensure a particular business line is effectively pursued. This business strategy includes the product, service or market chosen for business. By implication, the strategy dictates what business an entity engages in or not. As earlier intimated, this strategy is derived from the corporate and must thus fit into the overall strategy like hand in glove.
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• Tactical level: Tactical strategies refer to the mechanical and organic strategies within the organisation that ensure that the intended goals are met in the most efficient manner. Each department sees to it that the best routes are refined and efficiently exploited to yield maximum benefit. For instance, the finance department should chisel out strategies to ensure the best facilitation possible such as making sure that the department processes any transaction within three hours instead of two days. With that resolve, the program implementation will be far quicker giving higher quality returns. Strategic approaches Strategies are many and varied depending on the issue at hand and the implementation pace. A number of schools of thought present themselves but two come out prominently at this stage. These are the traditional and the dynamic strategies. The traditional is one that includes industry structure analysis, fixed strategies that assume the environment is stable. The dynamic or strategy innovation as called by others (e.g. Gary Hamel) is the approach where the environment is perceived as extremely turbulent, uncertain, unstable, rapidly dynamic needing continuously mutating strategies that fit in with the changing scenes. This approach to strategic planning is fast taking over the now dim traditional approach. In terms of the strategy types, the short and long term strategies immediately present themselves. The short-term strategies are those that are for the short period of time and usually are designed to remedy an immediate need in order to pave way for the longer-term. Put differently, the short term strategies are somewhat preparatory or correctional to bring things under control in order to lay ground for the long term. For instance, when fire guts a building, the short-term remedy is to rescue any people trapped in the building, administer first aid while extinguishing the fire before it spreads to other buildings. The long run strategy is to install fire preventive utilities such as smoke detectors, extinguishers and asbestos walls wherever possible. In addition, you could sensitise the community about the ravaging effects of fire and cost implications. From the above description, it is clear that the first is immediate but the second scenario is preventive and proactive. Similarly, in all areas of the entity’s life, there must be short-term strategies that deal with the issues as they arise. In a business, when the entity realises that it is losing market in its once dominant sector, what will it do? The short-term strategies include applying rapid remedial actions that plug further market loss such as price changes, or promotions. What the price strategy does is to 46
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under cut the rivals who may not have as sound a financial base as the company in question and thus arrest further losses. This has been evident in the Cell phone business in Zambia where the Zamtel’s Cell Z launched their unique products and services such as per second billing. Initially, this caused quite a stir in the industry and naturally people begun reverting to the ‘old faithful’. For a season, the other competitors cried foul over unfair competition. It was not long however, before the others retaliated with the same imitated product offering and even added more features to the said product. As though that were not enough, they introduced new features that for a season outwitted the Cell Z. Note that some of those products were not long term but were meant to sort out an immediate problem. On the other hand, long-term strategies focus on where the entity ultimately wants to be, say ten or fifteen years hence. The company, having carried out a self-SWOT analysis, establishes its core competence begins to work toward the desired position. In other words, long-term strategies are as equally crucial only that they are designed to be arrived at by little strides that add value to the organisation. For instance, one of the long-term strategies would be to curve out a unique niche, high quality products or hiring the right human resource. The organisation ensures its internal customers are satisfied, conditions improved and processes perfected from within whilst remaining a learning and lean organisation. This position takes time as the team building antics evolve over time. The processes towards the desired end take various shades but the following are some steps for the long term goal planning: a. Perform a self evaluation/audit using internal and external, independent and objective evaluators. The internal evaluation should be first done followed by the external, the benchmark being the organisation policies, standards and mission statements (A log frame will be handy in the case of projects). Among the enquiries to be answered at that stage is whether the organisation is properly aligned and in keeping with the overall organisational objectives. This exercise may be expensive but worth the while. b. Once the true position is established, the evaluation results are digested, compared, harmonised and recommendations taken note of. This can be done in different ways such as staff meetings or via the internal communication channels that include e-mail, LAN or public notice boards. During those meetings, people are encouraged to respond to the findings, corporately brainstorm and together chisel out 47
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d.
e.
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a new path to pursue. Create a conducive informal atmosphere where the people freely express themselves regardless of status. Special emphasis on status tag removal so that people are not intimidated lest they get the boot after the meeting. During that meeting, deliberations minutes are to be taken so that the responses are documented and used as a basis for future reference. Following the drafting and harmonization, the Strategic Management Team (SMT) adds quality by further refining the recommendations whilst consulting with the various key stakeholders within the organisation. Once fine tuned, the plans are neatly packaged and disseminated to stakeholders for review as feedback is critical. After the final feed back has been assimilated, The SMT counter checks for the various factors that might affect the strategy such as the rapidly mutating business context, political conditions or indeed the home team morale. Thereafter, the adopted strategy is then launched full throttle having galvanised the support of most operatives. During a strategy’s implementation, the SMT constantly and meticulously keeps one eye on the dynamic environment and comes up with emergent strategies that counter all possible threats. Monitoring against set bench marks keeps the strategy fresh and on track. Six months, a year or two down the line, the organisation must regroup to evaluate the progress and amend the strategy if need be. Feedback is really key in strategic manoeuvres.
Redesign
Evaluation
Strategy crafting
[
] 2 years cycle
Implementation and monitoring
Proceed
Proposed strategy cycle
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Short and long term strategies Generally in dealing with strategy, we must always bear in mind that in as much as the long term is very important and ultimate, we must nevertheless be mindful that it is by little steps that we arrive at the long term goal. Thus, in strategy, it is of necessity to have remedies, plans and alternative ways to deal with the immediate challenges whilst keeping focus on the long-term aspiration. In other words, strategy ensures that it charts the long-term course whilst maximising the present via short term plans. In addition, shortterm strategies are designed to mitigate the short run with immediate remedial solutions. For instance, the natural disaster that ravaged the Zambian landscape in 2002, the immediate strategy was to promptly mobilise relief food to achieve a number of things. Among them were to avoid deaths, disease and malnutrition or indeed garner some political clout as well as bring some hope and resilience into the people. The long-term strategy ensured that people were equipped with tools to generate their own wealth as well as enhance their coping mechanisms. This was done by training the locals, introducing the drought tolerant crop varieties using different development approaches such as peer group loans or collateral. In that way, the dependence syndrome was curtailed and capacity built. Similarly, in the business world, short-term strategies are exploited not only for survival purposes but also solidifying the winning base in the market. The Strategies employed vary from context to context as the case may be. In a profit making organisation for instance, one of the ways to survive or get a head start is to cut back on overhead costs, freeze wages and employment, defer costs, scale down, re-engineer/rewire/reinvent the organisation, out source or simply spin off some non-core businesses. All these can be perceived as short-term emergency remedial manoeuvres but have a bearing on the long-term goals. In capsule form, we can safely assert that the shortterm strategies ensure that the present is maximised to get the best returns in the present while contributing to the overall long-term goal. These shortterm strategies are building blocks to the super structure. In a sense, emergent strategies can also be classified as short term in that these are strategies that are put in place to ensure that the organisation remains on course and focused. On the other hand, long-term strategies are plans that foster continued success and market dominance. The desired position in the long run is the issue at hand. In other words, the fact that a number of successes have been scored in the short run is not good enough but whether that particular 49
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success adds value to the quest for a win position. If it does, then continue whilst keeping a meticulous eye on the ultimate goal. For example, where does Zambia want to be in twenty years from now? Does it still want to remain a beggar country? If not, then the country should ensure that it takes charge of its destiny and exploits, regenerates or supports every potential resource that leads towards the desired end. For instance, when the nation has two successive bumper harvest seasons, does that constitute food security or self sufficiency? If the exploitation of the abundant natural resources such as land, minerals and tourism turbojets the country to success, then that is the way to go. For instance, in relation to power generation, which is cheaper for Zambia, hydro electric or solar power? Both demand huge initial capital injections but which of the two in the final analysis is more cost effective? Zambia is endowed with vast hydro and solar resources potential, but which one is cheaper? The author’s private opinion is that solar technology must be further exploited and researched into than it hitherto has been of course bearing in mind the related maintenance costs such as the battery replacement and initial capital costs. If the idea is multi purpose use of the facility, HEP offers power, fresh water, recreation and employment e.g. fishing which solar may not. Lake Kariba has done that though largely under utilised, and scandalously so. Let us draw a lesson from the GMO saga that surrounded Zambia in 2002. Whilst the neighbouring countries accepted the short-term remedy of genetically modified foods on their turf, Zambia vehemently refused to budge as accepting GMO had long term negative effects. For example, Zambia would have completely lost the European market which at the time demanded natural products (food, flowers etc). President Mwanawasa made the right strategic decision±. Care must be taken to ensure that the short term fosters the long term. Strategic formulation Mechanics How does new strategic formulation practically take place? Many have suggested ways for strategy formulation and a number of consulted experts seem to favour the self and external scan path followed by intensive strategy crafting based on the available information as well as the perceived strategic futures. Once the objectives are firmly set, buttressed by ±
Although recent press evidence shows that some GMO food was actually imported into Zambia in 2006 shortly before the Presidential and Parliamentally elections. Refer to The Post of July 9th & 10, 2008. “ FRA wasted K 23 bn on GMO maize” & “ Chilala explains FRA’s K 23 bn GMO deal”
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viable Vision and mission statements, the organisation is ready to undertake the scans highlighted earlier on in this paragraph. The said scan presupposes the right objective team on board, a powerful information source network, financial muscle, learning and flexibility. The ensuing sections delve into details as to how to go about the modern strategic formulation trends. Techniques to identify and evaluate strategic options Before coming up with an ultimate strategy, a lot of prior processes are at play so that the out working mechanics of the strategy are the best available and to a large extent guarantee, success for the entity. Various ways can be employed in the path to charting a strategy but generally the strategy making process goes through the following four stages: Analysis This first involves the gathering of background information from the environment regarding a number of issues so as to ascertain the position of the organisation at a particular given time. Some of the information collected includes customer behaviour patterns, rival company strategies, SWOT analysis and the probable trends into the next year or so. This stage is very involving because the organisation has to be very diligent, candid, sincere and willing to address the issues raised in the information gathering period. Care is taken to gather as much accurate current information so that it can be used as a basis for future decision making. However, too much information must be avoided as this contributes to slowing the organisation or “information overload”. Loathe information overload like a plague! Further, this period is the time to identify what the competitive advantages and core competences are so that the organisation zeroes in on one potent goal. Flee the analysis paralysis syndrome that often bugs many an organisation. A summary of all the findings is helpful at this findings interpretation stage. Once this phase is past, the organisation is now ready to take the next step. Plan Subsequent to the situational analysis in which the organisations’ lot falls, the logical thing to do is to chart the best way forward. The organisation considers the best way to achieve the desired goal and takes steps towards the planning process. The first among many includes chronologically listing the issues at hand such as the products and services identified in the earlier analysis in (1) above that are on demand in the future as well as the available markets. In addition, the organisation considers the capacity building, 51
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quality, team work, known quantity hiring, budgets, sources of finance, cash flow, close out period, review frequencies, resource audit such as assets, liabilities and human capital issues. The crafted strategic plan ought to be realistic, objective, SMART⋅, and optimistic. At this stage, the Strategic Management Team (SMT) refines the findings generated from the analysis stage thus charting the future direction against the given background notes. It may be prudent to host a number of brain storming sessions with the relevant stakeholders as this helps carrying everyone along so that they too own the goal. Implementation and monitoring With the Plans securely in place, the SMT then chisels out how the goals will be achieved from period to period. This is the operational aspect. After the detailed budgets, and write ups (such as the plans of action) are done, the business frantically executes the plans, while ensuring that the quality delivery systems are in place. Benchmarks and milestones are set allowing progressive monitoring and while the implementation is in motion, the SMT dares not go on “holiday” but remain meticulously watchful of the environment in case emergent strategies need to be speedily formulated to keep in step with the mutating context. In other words, the SMT must regularly revise the strategy relative to the observed changes thus keeping it relevant and fresh. Further more, the SMT anticipates change rather than simply react to it as well as adapting the strategy as necessary to keep moving ahead. To achieve this, the team must factor mechanisms within the strategy that are flexible to change ensuring a sustained dominance in market leadership. The best is to endeavour to operate in the proactive “quadrant II” mode as advocated by that self-management guru, Stephen Covey.ℑ Evaluation and redesign: While the strategy is being executed, the learning organisation vigorously undertakes periodic monitoring of how the strategy is performing on the field, draw valuable lessons and make appropriate amendments to maximise desired results. Closely connected to monitoring is the evaluation function. The evaluation takes place after a considerable period of time, say two years or so to check the long term impact as well as aligning the strategy to the original objective. If peradventure it is noted that the entity is not on target, ⋅
SMART= Specific, Measurable, Achievable, Realistic, Tenable/time bound Stephen Covey “ Seven Habits of highly effective people”
ℑ
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appropriate remedial paths are recommended. Good indicators are key for effective implementation. Thus, we have seen that though strategy formulation mechanics appears to be extremely complex and involving, it is a profitable and necessary exercise. If done repeatedly and often, it is soon internalised and helps the organisation to successfully reach its desired goal. For this to be well done, the right type of leadership is critical as shall be seen in one of the subsequent chapters. ====================================================== Bibliography Beatty Jack, THE WORLD ACCORDING TO DRUCKER: The life and work of the world’s greatest management thinker, Magna Publishing, 1998 Bennet Roger, International Business, 2nd edition, Financial Times/Pitman Publishing, London, San Francisco, kuala Lumpur, Johannesburg, 1999 Cateora R. Philip, International Marketing, 9th edition, 1996, Irwin McGrawHill, Boston, Massachusetts, Burr Ridge, Illinois, Dubuque, Iowa, Madison, Wisconsin New York, New York San Francisco, California St. Louis, Missouri Certo C Samuel & Peter Paul J, The Strategic Management Process, Irwin/Austen Press, 3rd edition, 1995 Cohen A. William, THE ART OF THE STRATEGIST: 10 essential principles for leading your company to victory, Magna Publishing co. ltd, March 2006 Drucker F. Peter, Managing your self, Management challenges for the 21st century, Harper Collins, 1999
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Griffin W. Ricky, Management, 5th edition, 1996, Houghton Mifflin Company Hill W Charles, INTERNATIONAL BUSINESS: Competing in the global market, 4th edition, McGraw-Hill Irwin, 2003 Kotler Philip, Principles of Marketing, Prentice Hall, 2005 Langdon Ken & Bruce Andy, STRATEGIC THINKING, Dorling Kindersley, 2000, London, New York, Sydney, Delhi, Paris, Munich & Johannesburg Thompson L. John, STRATEGIC MANAGEMENT: Awareness and change, Chapman and Hall, London, New York, Tokyo, Melbourne, Madras, 1990
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Chapter Four
“The razor sharp organic strategy guarantees perpetual success” BS Microscopic view of strategy tactics Usually, when people are handling the great subject of strategy, whether academic or not, they tend to deal with it from an abstract, disjoint position far removed from reality. They miss out the processes in between and as such, rarely give the actual strategy gem in operation. Others handle it in a very complicated fashion, using many elaborate and complex terms to the extent that the pure strategic pearl is veiled from the common man’s sight and grasp. Of the many books that I have read on this subject, two books rank among the best, one of which is “The Art of the Strategist” by the venerable Dr William A Cohen (www.stuffofheroes.com). The man has thoroughly dealt with the subject from his three fold perspective, largely derived from his experience in the military, academic and business worlds buttressed by a 7,000 year strategy time frame. He challenges the present highly acclaimed strategy theories and then distils 10 classic strategy principles leading to corporate and individual success. This is indeed a fine, concise, pithy and racy book worth reading at all costs. Some of his ideas are briefly outlined in the ensuing paragraphs, with some modifications and additions. I consider Cohen one of the master strategists of our time. The other strategy classic text is “Business Policy” by Bower, Bartlett et al. These two books are worth your earnest perusal to get to grips with the heart of strategy. For now, we delve into our strategic tactics. Note though that the best strategy enables triumph without much ado.
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If an entity, whether small, medium, big or individual is to succeed, they do well to ensure certain things, no matter how mundane, are clearly in place. This is so because these key issues make the building blocks leading to the next strategic move. As intimated in an earlier chapter, strategy is basically a means to an end. In other words, these are simply comprehensive plans that take us to the desired haven in the most cost effective, efficient and timorous manner. Strategies ensure that the competitors are outwitted or paralysed at best by employing unique world class schemes that the contenders fail to imitate let alone counter, thereby giving the initiator organisation more clout in the niche quest. Consequently, the entity emerges victorious and distinctly competent in that area. Bower et al rightly state that “a good strategy is often hard for competitors to recognise.”◊ We may add that such a strategy is also difficult to copy or imitate. Some of these tactics include: 1. Setting the definite, clear objective and unreservedly pursuing it whole heartedly. The organisation must know exactly what it is about and what it intends to achieve before any coin is spent. Once that is in place, the firm sets its eyes on success and goes full throttle to hit the target. It will not rest until the work is done. Lack of a clear objective has a negative effect on strategy for what will you push your entire weight on? Thus, strategy is the engine block upon which the momentum is built. In other words, know what you are about, where going, how to get going without delay! Fuller suggests that to succeed, you need to synergise three inseparable traits: Moral, mental and spiritual prowess. Only when you identify a gap in the environment and resolve to fill it will you build a unique niche. Anita Roddick (The Body Shop) and others come to mind at this point. They built world class enterprises from identifying a need and diligently pursuing their goal. 2. Take the initiative and keep on the offensive. Aim to get a head start by striking first and maintain the offensive stance. The move forces the competitor to immediately go into the reaction mode. While they are marshalling their artillery, you strike another weak spot and keep them guessing. Further, having taken the initiative, ensure you maintain the command and set the pace, as it were. A story is told of how Japan struck the American Pearl Harbour in December 1941 when the USA least expected. The plan was attack, destroy all the ◊
Bower et al, Business Policy, pp 91
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strongholds and return to base. While the Americans galvanised, the Japanese would have ascended to a superior position and invaded the other American allied Asian countries. Though good, the strategy did not work well because providentially, the USA had some other war ships far out at sea from where other lethal war planes took off to retaliate and in the end led to the Hiroshima/Nagasaki atomic bomb catastrophe. The idea however was to strike the superpower first and put them on defence, keeping them busy while attacking their (American allies) protected nations in Asia. The bottom line is to strike first and remain in charge. Keep the momentum high to the end. I remember a fight I won over a big bully at primary school years ago. It was an interesting but tactical victory. For some reason, we picked up a quarrel in class and vowed to settle scores at home time at a secluded place within the school premises. Being comparatively smaller in stature, every one felt sorry for me and thought I was basically being stubborn for nothing and would be flashed out with one frail punch. I insisted that I would face the bully, Michael, so that everyone knows who is king. In my heart of hearts, I dreaded the boy but went ahead anyway at the risk of losing popularity among the girls. At home time, a small curious crowd assembled and followed to our “ring”. Before the boxing match started, we were to hit the sand in the hands of the ‘referee’ to signify that we were ready for the fight. Already, confident Michael was issuing threats and obstinately strutting around and mocking me. I maintained my composure appearing calm, cool and collected. This puzzled my challenger. When we reached, the ‘referee’ came in between us and asked us to hit the sand if we were ready to fight or chicken out. If one did not hit, then they were considered as having chickened out. Naturally, both of us hesitated but while he was still boasting and deciding, I quickly slammed the sand and charged at lightening speed. Before Michael realised what was going on, I had launched a flurry of punches to his tempo, pushed him and tackled him to the ground. In no time, I jumped on his chest, clamped his hands with my knees and rained blows upon the poor fellow. He screamed for help as some blood oozed out. Thankfully, the ‘referee’ quickly jumped in and stopped the fight. I pretended as though I still wanted to fight which in itself scared Michael who scampered for safety. Thus, I carried the Jacaranda Primary school boxing crown for that day. I was a hero among the girls and every one else. Strategy did the trick.
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3. Practice sequencing and timing. This refers to being logical, systematic and timely in your manoeuvres. Never do the right thing at the wrong time and vice versa. John Maxwell calls it ‘the law of timing.’ In Zambia, we have heard of great ideas that come way too late or too early before their time. Thus, it is imperative that a well thought out scheme is first mooted, simulated and then implemented according to the logical time frame. I once hired a carpenter to make some piece of furniture for our home. The gentleman, like most carpenters, promised to produce a world-class furniture piece. I stated clearly from the outset that I needed it within a certain time frame to which he readily consented without giving due thought. When I showed up on the agreed date to collect my item, he seemed rather stunned at my presence and in the same breath showed no remorse for not working on my items as agreed. I made several repeated visits before I finally received my item, totally out of step with my plan. I was focusing on timeliness while he was looking at the quality irrespective of the delay. Such a business man can hardly succeed in the post-modern competitive business environment. Other examples to illustrate this strategy would include circumstantial leadership. Fredrick Chiluba (1991) rose to the occasion when every one dreaded the incumbent and went on to be President. Tsvangirai of Zimbabwe almost did the same. A critical lack of housing units in Zambia created a huge industry which the wise seized. While some own estate empires, others rent through out their lives and die paupers. I started my MBA studies in the nick of time when my former employer was beginning to give high premium to educated people. I landed a big job in due time while others fizzled out. 4. Economise and mass your resources. If you are to succeed and make significant headway, know when and where to spend your resources. For most of us, resources are scarce and as such, we must prudently use what is in hand. One time, we had many competing activities demanding our paltry resources all drawn from our meagre salary. We did not know which exactly was priority for they all demanded immediate attention. Finally, we settled for the item that would give us the highest return and eventually effectively sort out all the other issues sustainably. In that regard, we elected to complete our flat, put it on rent and now supplies cash to finance other projects. Similarly, you must apply priority principle and focus the bulk of your resources to an area that will give you the highest return in the shortest possible 58
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time. The Pareto 80/20 principle is handy at this point lest everything crowds our mind appearing urgently critical. There are great returns in effectively using the Pareto principle. Galvanise your resources and build on your strongest point. In a nut shell, reserve your best and most resources putting them in critical areas for deeper impact, quicker payback. This means you thin out in the non essential places and reinforce the critical areas. It does not make sense to thin out and spread all your resources all over the place. Narrow your take in a strategic fashion into “chewable” bits. 5. Horn in your adversary. In physical war, every avenue is fully and carefully utilized to ensure that the home army grabs as much territory as possible. One other way is to create an environment that “horns in” the enemy i.e. so that they have no option but to fall into our trap regardless of what option they take. It is like putting a net across a narrow stream and chasing the prey from behind into our net. As they flee, what ever turn they take lands them into our strategically laid trap. Of course, this is done in such a way that our net is invisible or undetectable to the naked eye. When they get into our mould, we swiftly lift the net out of the water to sort the catch. Blackmail experts often use this strategy effectively. The author once worked with a colleague who got by and escaped definite contract terminations due to his blackmail powers. I have heard of opposition politicians that have been compelled to join the ruling party following a threat to ruin their political career. They are reminded of all their crippling debts or potentially exhuming long buried and well guarded atrocities. If they do not defect to the ruling party, they could be permanently extinguished shamefully from the political landscape. Desperate for survival, they yielded and tranquillity reigned thereafter. Either way, the blackmailer carries the day. You could use other compelling strategies that knock out the rival. Remember to fashion your strategies in a holistic sense. 6. Maintain a high level of secrecy about you. I always marvel at how smart Dr Levy Patrick Mwanawasa (Third Zambian Republican President) has turned out with his copy cat strategies. What has partly contributed to his partial success despite having so many negatives bordering on his perceived fragile health (although he has adamantly consistently insisted and claimed the opposite) and character is his ability to quickly ‘download’ other rival strategies, refine the ideas 59
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and implement. In the end he has made the opposition parties appear irrelevant, loud and empty for nothing. In retrospection, and to some extent, the opposition are to blame because in the quest to look superior, they have mindlessly blurted out their world class development plans in the national press. For a season, they have appeared fantastic but alas, the photocopier strategist Mr Mwanawasa, having challenged them to table alternative policies to his, has swiftly sucked in all the beneficial juices like a sponge and appeared smarter in the end after implementing. That explains in part how the new dealers seem to have turned the country’s economy, although questions still linger as to their genuineness. The point, however, is that as the entity carries out its mandate, it must harbour some amount of secrecy about its planned manoeuvres lest the enemy discovers their ploy and thus effectively counter it. If some gaps remain unfilled, this unsettles the rival forcing them into apprehensive defensive mode. This keeps every market player guessing while the winning organisation sets the trend. Exploit some level of clandestine manoeuvres. Always keep your killer formula a guarded secret and keep the rest guessing. 7. Be unpredictable and do the unexpected. Closely connected to # 6 above, the organisation must mould itself so that it becomes practically impossible to predict its next move. It should constantly be reinventing itself, mutating, challenging the status quo, taking intelligent calculated risks, do the unexpected such as going right across the grain of the conventional wisdom and emerge winners as much as possible. Many of today’s corporations are too rigidly one track minded and dare not go off the rails a little. They resolve to stick to the ancient tested and tried paths that others have used over myriad times and can counter with their eyes closed. New, adventurous paths confuse and derail larger established companies, at times even knocking them out of business. I fear the weapon has worked very potently in Zambia for many years as the country’s economy opened up to a liberalised market setting. Far too many companies and individuals felt too safe, securely protected by the command economy but as from 1992, they were left naked and exposed to the sweeping changes that came as a flush flood upon our land. Now, many are copying and changing with the times as the marketer is recognised and given their rightful birth right. The only way to success is to constantly think outside the box, maintain a head start, anticipate 60
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changes and respond appropriately, as the case might be. In a nutshell, when people expect you to do the logical thing but instead you do some thing else they least expect. 8. Have truckloads of surprises up your sleeve. Once again, closely connected to the preceding point, the organisation must be replete with truckloads of surprises that it uses at will usually to the detriment of the receiving end or rivals. In all strategies, the idea is not only to weaken the opponent but to get ahead. The best and largest portion of the cake is the ideal goal. The organisation with the freshest ideas carries the day. Some entities are unstable and as such many people ignore them by that token but when they pull a quick one ending up on top of the heap, every eyebrow is raised, though too late. That apparent indifference and confusion is a potent strategy in its own right. Garner as many ideas, plans, schemes and muscle up your sleeve as you can and relentlessly unleash them galore not giving the foe time to regroup. An ideas avalanche is what matters. General Electric and Microsoft respect the ideas saturated person, no wonder they are immensely successful. 9. Keep multiple alternative but concurrent strategies. In every endeavour, it is not only prudent but necessary to have a back up strategy at every stage of the way. This back up ensures that things remain on track regardless of any eventuality. If you employ a strategy that is countered by your competitor, automatically revert to the other. One of the best strategies that has made the American space programs is the whole idea of the back up plans, in the event of any failure. Consider the Voyager, Pioneer, Viking lander “twins” what about opportunity and Spirit on planet Mars? The space shuttle program also has always had back ups. Another classic example is what happened in the Gemini 8 mission when the space craft malfunctioned in space after delivery if and rendezvous with a satellite while in space. It was a life threatening situation but thanks to the back up plan that helped the astronauts return safely to earth. A similar event occurred during the aborted Apollo 13 mission. Not only should a back up plan be in place but it must be able to run concurrently with the present priority strategy. Yet another example is when incumbent Governments are to rig elections. They have multiple tactics and at every turn, alternatives are available. For example, if they fail to rig from the major polling centres where they potentially 61
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can hit the largest numbers, they revert to the outlying hard to reach areas where security and monitoring is not only scanty but suspect, hence the delays in announcing results from those particular areas. A positive strategy is to be preferred though, as opposed to the one just summoned. In a nutshell, always have plan B among your strategies which you can easily fall back on during the rainy and cloudy day. 10. Pursue a vector route – Often, many of us prefer and think of the direct route to success, but it may sometimes be prudent to take an indirect vector towards the same end. As the saying goes, “there are many ways to kill a rat”. You could elect to use a mouse trap, poison, your bare hands or even block it from coming anywhere near you. What ever the method, the main objective is to minimise inconvenience on your part. By that token, a case may best be won by exploiting some unfamiliar, indirect path towards the goal. While everybody expects you to rush directly for the bull’s eye, you purposely linger on the peripherals so that when the “coast is clear”, you hit home hard. In doing this, you get a number of benefits that include, minimising your costs, letting others do all the donkey work such as research, survey etc upon which you build your success strategy at a lower cost. C Vector taken
A = = = = = = = = = = = = = = = = = = = = = = = = => B destination Potential expected direct path The other benefit is that while others make mistakes in the process of taking the lead, you trace their path but in a corrected and refined fashion. We once undertook a building project (of course we hardly had enough money at a go) and let others independently overtake us with their Porsche world-class structures. They built their flashy mansions, including the wall fences. In the end, though unplanned on 62
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our part, we just built one quarter of the entire wall as the other three quarters were independently built by others. As much as possible, keep every one guessing while you can. 11. Effectively exploit your distinctive competence – Do you know what your distinctive competence is? What is the unique strength that you or your organisation possesses and gives you undue advantage over all others? What is it that distinguishes you and makes you stand apart from the rest of the pack? That could be your distinctive competence. While others sell their products and services at double price you are offering, further add value while cutting costs and raising quality. As a strategist, ensure that latent potency is utilised to the fullest to turbo your firm. Companies that focus on their strengths often perform much better on the market. 12. Capitalise on your strategic positioning – Each organization or individual have their unique identity. Some have great brand names, others do not. Each of them must use their competitive advantage to push their own case. They must endeavour to strategically position themselves market wise in such a way as to best yield maximum benefit. A new market entrant must first read the times and proactively position itself in success’ path to gain the most out of every opportunity. In other words, right proactive location is key to success or else efforts are but wild shooting into the air. 13. Decoy your opponents by keeping them busy and confused – This may include entering destabilising alliances with one of the major players in the market while ensuring that there is enough room in the pact to allow your organization strengthen its position independent of the partner. Alternatively, your organization can fuel controversies that ignite an unquenchable antagonistic fire between the rivals. While they are carried away with the litigation battles and destroying their images in the same breath, your organization quietly but efficiently grabs more territory in the background. While diverting their resource to the battle at the expense of research and development, product development or even service delivery, you place your bet in the emerging gap or weak point. The Apostle Paul once used this strategy when brought between two potential warring parties that had seemingly united against him (Acts 23:6 – 10). His penetratingly analytical eye saw far more than they realised and mentioned just one 63
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controversial point, which sent the whole assembly into jeopardy. Another example is the Zambian political scene where the MMD has repeatedly trounced the opposition by using the divide and rule method. They have exploited the antagonistic and egocentric natures of each party and inter/intra party fights; the MMD has smartly weaved success. It is no wonder President Mwanasawa quickly announced the election date before the UPND recovered from the Anderson Kambela Mazoka loss or before the opposition had time to regroup. You need to be witty some times. Another thought comes to mind. Mr Mwanawasa is a master at causing deliberate confusion in the enemy camp. When he first entered State House in 2001/02, I doubted his sanity due to his prior near fatal car accident. I was wrong because when I scanned his profile since then, I think what he has achieved is nothing short of a feat. From a paltry though disputed 29% minority vote in 2001, he has managed to worm his way into the hearts of people. He has employed one or two effective strategies. One of them has been the divide and rule decoy. He has virtually divided nearly every one and poached some people to his side in the process. While people are gnashing their teeth in anger and confusion over a previous controversy, he has been swiftly chiselling away a smooth pathway for himself in the background. The state counsel has specialised in stirring the air by concurrently running multiple controversies. In that way, he keeps the nation under control and time rolls on. Think of the opposition camp, whose MP’s were enticed, used and later discarded. What about the entire nation debating the Task Force tenure, constitution adoption process, Bulaya saga etc!? Families have not been spared either in this political game, including the Chiluba camp! In 2006, Vera, FTJ’s former wife, was appointed Deputy Minister in the Mwanawasa regime, to a totally unexpected high profile and sensitive position. Your guess is as good as mine, but could it be that they wanted to download some vital information about FTJ or to keep the slippery Chiluba quiet? When you critically analyse, why did the MMD refuse to enter any pact or alliances with other parties prior to the 2006 tripartite elections? I suspect they sensed that the more fragmented parties there were, the better the chances of their winning. This is because the egocentric parties would split the votes thus giving MMD the victory on a silver platter via a simple majority defective constitution.
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14. Take advantage of wrong perceptions: The other equally classic Mwanawasa strategy is to capitalise on the wrong perception people have about his health. He deliberately appears unstable, moody, moronic, eruptive and thus easily excusable (In the docile Zambian culture classic style!). By that token, he strategically generates constant antagonism, acrimony, tussle and speculation in the public mind to shift attention to another thing, akin to the unstable Yoyo. In the final analysis, every one remains in mental tatters, not knowing what to do or which cause to effectively support. Therefore, those that think the man is not 100% fit are badly mistaken. He is perfectly fit and aware of what is going on and smartly shuffles his cards at the right time. Speaking as a strategist, one wonders whether the corruption fight is really, sincere and genuine or it is meant to hoodwink public attention with the lengthy, slothful legal cases while the years roll on. It could be a carefully stage managed act by all concerned parties including the FTJ camp as well so that in the end, everyone goes home scot-free and perfectly happy, though the recent exotic London judgement makes this view doubtful. Never leave anything to chance, there could be a catch somewhere still! 15. Forge strategic alliances. In connection to (13) above, the organisation enters “marriages of convenience” with major allies having potent abilities and ride upon their fame. This is especially useful if the said strategic allies are major market players in your area of business or another and thus send rippling effects across the industry. This instantly makes other competitors on guard and in a defensive mode. Your goal in this instance is to expand market share, image building, synergy, higher shareholder return and economies of scale thus ruining the competitor. Care must be taken to draft workable and clear alliances to avoid the fireworks that attend many so-called pacts. The Zambian political scenario gives us the best example where alliances seem to do more evil than good when the opposite is intended (2001 – 2006). Sikota’s ULP rode on the PF’s popular image to secure some seats in Parliament and after the elections, the pact dismantled. Many wondered the wisdom in a Bemba and Lozi bandling together but little did people know that the ULP was powerfully launched on PF’s popular good will. Watch it in 2011. In another sense, it could suggest that these particular politicians are true nationalists rather than filthy tribalists. In the case of the NATO allied forces however, over the gulf war, the combined efforts of multinational force led to some 65
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significant and record invasion of Iraq. Despite the attendant politics that surrounded the aftermath, there is often strength in numbers. 16. Simplify things. In this game of strategy, one of the keys success factors is to keep things as simple as possible on your side while putting up sophisticated face to the outside world. If things are simple, the work is straightforward and easy to follow through unlike a situation where every move is a complex mathematics puzzle. People tend to get bogged down in the details maze instead of placing the eye on the most important things. This arrangement in part contributes to the analysis paralysis that swarms many a potential successful entity. Further, the costs go up, takes more time to craft and maintain. Sell your ideas in every day language and you will have crowds rallying behind you. That is what made Mr Michael Sata probably the most popular Presidential Candidate in the 2006 Zambian Presidential elections. His message was consistently simple and appealed to the majority of the common man on the street – less tax, more money in your pockets, more jobs and prosperity for all. He kept up this call for nearly five years and stole the hearts of many, including a good cross section of the elite as well as the saints. The other candidates were equally good, perhaps even more realistic but they either kept talking about the dim past or veiled their plans in complicated economic jargon, too lofty for the average man. The golden key, keep it simple baba! 17. Move faster/ swifter than your competitor. In this fast paced life, speed is one of the competitor edge factors, absence of which may cost you your trophy. As the Technology revolution takes its toll, there is need to anticipate environmental changes, uncertainty, positioning and responding to customer needs long before the rival becomes alive to the present reality. In an earlier segment, it was suggested that you may need to take the indirect route and thus deliberately delay contingent upon the context, we now recommend in the same breath that you remain vigilant, alive and ready to move swiftly when a clear opportunity avails itself. In keeping with what someone has said that success is a result of being prepared plus opportunity (opportunity + preparedness = Success). In other words, today’s winners are those with the trained eagle’s eye that hovers around a wide radius and quickly moves in for the kill when all indicators suggest that the time to act is ripe. At times you may need 66
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to be swifter, responsive, proactive, and agile if you are to ascend to prominence in this highly pervasive dynamic technological information age. Networks are crucial for your success. Ensure you have an internal reliable information source so that you access prompt privileged inside information from your enemy camp. Employ a spy (or spies) if you can and keep him/her on your secret payroll, it pays dividends over time. I find it intriguing that Mr Magande, that potent Finance minister who was instrumental in the Zambian economic turn around (2002 – 2006) was initially a UPND cadre but defected to the MMD carrying core ideas with him which he later implemented in the ruling party. Once again, be ready for action and move faster than a speeding bullet, as has been the case for Superman. Effectively use first presence advantage like Zamtel compared to Celtel or MTN. Sadly, Zamtel is reactionary rather than the trend setter. 18. Maximise the use of your past success. The greatest weakness that most Zambians have is a failure to build on their past achievement. Sadly, they seem to grow immensely satisfied with the token successes they accumulate in an event or two and thus sit back to rest on their laurels. That is a terrible mistake because in the short run, all these gains run out and they turn destitute. Countless soccer stars have fallen in this category, who after illustrious professional stints abroad return home empty handed. It is a painful reality. The strategist on the other hand, sees opportunities, uses them to collect more success medals and credentials for use in up coming battles. The success image, good will and powerful brand name are effectively built up to reap more and more in ensuing years and months. Today’s bright star entities have successively built on what their predecessors have left unlike what happens in Zambia where we keep rebuilding foundations instead of the superstructure. Every successive President spends the first two to three years tearing down what others have previously done before they begin their own work which is later torn down by their successor. Similarly, business empires die with the demise of their initiator. Countless incomplete structures around the country have stories relating to the owner having died mid way in the construction. The end result is stagnation, disputes, looting, plunder or cannibalising of everything. Succession planning is not in the Zambian vocabulary perhaps. One hopes this face changes as stiffer laws are enacted to curb property grabbing. But then, the underlying problem is attitude and crippled mindset rather than resource 67
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availability in most cases. In strategy however, once you are on top, build on the past successes and never allow the enemy space to regroup, period! 19. Improve your copier powers. Become a world-class nanosecond strategy imitator. You dub as much as possible and literary “download” your rival’s workable strategies, improve on them so as to make them (competitor) appear irrelevant, obsolete and slothful by improving on what they evolved. The Mwanawasa ↔regime comes to mind at this stage. It literary has specialised in adopting other workable ideas offered by the Opposition political parties. The “new dealers” have downloaded about everything that the United Party for National Development (UPND) and Patriotic Front (PF) have said and incorporated into their initially near mediocre economic strategies. Look at the Agriculture, fiscal discipline, corporate tax (especially relating to the mines), personal tax and labour laws that are being implemented today, where did they come from? I confidently assert some of these were initially opposition noise making points which potentially cracked Mwanawasa’s image. In other cases, swiftly catch the idea, document the improved version and patent them where possible, especially relating to inventions etc. 20. Generate deafening psychological blizzards on your frightened opponents’ mind. It is said that more than half of the battle is won or lost in the mind regardless of what one undertakes long before they actually get on the pitch. If the mind is fully persuaded and devoted, it will accomplish far more than the average person. A pessimistic mind rarely goes far above the tried and tested domains. Having internally convinced oneself of their worth and potency, they venture to wreck havoc in the frightened puny competitors without (i.e. outside, in the environment etc). This means that the organisation should effectively use the psychological weapon to threaten and weaken the opponent. From past experience, any sensible mind will have some amount of fright and reservation to fight and beat the undisputed world champion. The underdogs enter the ring trying their luck hoping to pull a quick one and carry the day. The defending champion has all the confidence and boastfully struts around the ring, promising an ↔
Refer to Mwanawasa’s Parliament opening speech of 27th October 2006. Further, refer to the Saturday Post of 28Th October 2006 and read comments from Sata and Hikainde.
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early classic victory. The legendary boxing king, Mohammed Ali effectively used psychological warfare long before the fight and thus won many boxing matches. Similarly, once one soccer team is matched with mighty Brazil, they instantly wobble in their chair long before the actual event. It is therefore important to know your rival’s vulnerability point and put up psychological scare crow that diverts their attention to the non – essentials while you strengthen your position hurtling to instant and repeated success.
21. Create chronic dependence on you. The developed world has been a master at this and very few nations have escaped their grip. I mean, they dictate the world’s political, business, social and legal agenda. Once the G 8 have agreed, who dares oppose? Besides, they determine what is legal and illegal. No wonder, many Africans, in apparent reference to the past atrocities committed by some of the now powerful nations, find it hard to trust anyone. They always suspect some conspiracy somewhere. Consider the HIV conspiracy theory, although unproved could hold some water. What about the deliberately created computer viruses, crippling debt burdens heaped on the hapless Africans? Consider further the past and present looting of Africa by the Developed nations. Baffour gives a graphic book review of Adam Hochschild’s landmark work that leaves one’s heart in pieces. The “King Leopold’s Ghost” is a painful story worth reading by every alert African nationalist. The West needs to compensate for all their atrocities around Africa. Today, confused Africa remains in tatters because it is completely dependant on the affluent societies, and yet when one critically thinks about this, it is an artificial dependence. The Africans are unsure of themselves, which emanates from an inferiority complex perhaps. A case in point is the Zimbabwean case where the western world has created an impression that all is bad eclipsing the real root cause- land imbalance. 22. Hoodwink your target. Once you successfully create an apparent dependence syndrome alluded to in the previous point, it is now time to change into a higher gear. Blind fold your target and cunningly siphon what ever you want while dangling spicy baits. While they are focusing on the carrot and in the process squabbling and fighting over it, get what ever you need from their back yards. In effect, you swindle them of everything and by the time they realise, you will have 69
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legal title and rights to what ever you are after. That explains why Patrice Lumumba was slaughtered. He saw the evil machinations of the West and was switched off. That is how our vast stretches of land were grabbed by the early explorers like Henry Morton Stanley. They made the ignorant chiefs sign what they did not know or fully understand! Africa still stands at cross roads regarding land matters. Recently, the IMF and World Bank have been accused of “forcing” land reforms attempting to change land power ownership from traditional (chief’s control) to state. In that way, they can easily buy off as much land and reintroduce colonialism in modern dress. Clearly, the poor old folk in the village cannot afford to have heir land demarcated and surveyed to get title deeds. Thus, the mighty, influential and powerful multinationals will come in and buy off most of the land reducing the natives into illegal squatters in their own mother land or be squashed in a terrible corner. All this deception comes in the name of “development and FDI” when the goal would be far more than meets the eye! 23. In the business world, invest where people are not looking or ignoring. This calls for long range thinking akin to the Koreans who are heavily investing in the weightless economy. Their aim is to be an oasis of ideas where other nations come and “order” ideas for future implementation or in a new industry altogether. These could include space travel, moon colonization, alternative software or simply move at a different wave length relative to the present technologies and practices. By the time others attempt to catch up with your inimitable creations, you move to another level. This turns your competitors into imitators rather than originators. “The Seer” newspaper nearly perfectly imitated the Post news paper but was clamped down by state agents when it attempted to publish a controversial story “Sex scandal at State house”. Naturally, this generated a lot of curious interest but thankfully for the Post, the paper died before the story saw the light of day. If it had published that ground breaking story, the Post would have probably been supplanted, buried or joined the other regular papers presently on the terraces. 24. Join them and later turn against them. This has been an effective strategy for a number of terrorist organisations or American installed dictators around the world. Usually, the said people and organisations sought help from the USA but when they got the reigns of power, they 70
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suddenly turned against the “infidels”! The worst part is that they learnt all the ropes from the USA, how the Americans think and operate and then went ahead to turn against the world power. That explains why Bin Ladin has been elusive thus far because he knows the Americans too well to be captured, at least for now. On the Zambian scene, we have repeatedly seen this strategy at work, especially on the political scene. Remember Nervous Mumba? He was used and later discarded. The bottom line is to learn the ropes of your enemy or threat in a calm atmosphere on their turf and then later turn against them having known their weak and strong points. The Opposition were used to enact the controversial National Constitutional Conference (NCC) bill (2007) that was later used against them. 25. Deliberately give wrong indicators to your foes and so mislead them. This idea confuses the opponent because they read wrong indicators and thus implement a wrong strategy for which they pay heavily. We must always be aware that our lives are always under 24/7 surveillance, especially if we are a threat to someone somewhere. Thus, as they “spy on you”, give them the wrong indicators if you can, so that they use a wrong remedy. It may mean deliberately giving wrong advice or information knowing very well that this is a bitter, lethal and toxic pill. That said pill maybe harmless to you but deadly to the other. For example, an Indocid capsule harms rats but heals humans.
Indocid capsules, deadly to rats… The sun melts wax but hardens cement. Water dissolves some things but hardens cement concrete. Sodium chloride (common salt) is edible when a compound but toxic in its constituent elements. Know what to give and
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when. The World’s financial institutions like the World Bank and IMF have long been accused of deliberately prescribing wrong development policies to the third world to keep them dependant. In fact, these countries are used as “guinea pigs” to test unproven theories. Some of these include land laws such as the land alienation from the chiefs to state control, privatisation pace, and ideologies among many others. The mosquito can give us a lesson on this point as well. It is said that the harmless male mosquito makes a lot of infuriatingly inconveniencing noise as it buzzes around. Whilst we are busy focusing on the noise source, the female anopheles mosquito straight gets to business sucking blood. It is practically silent and does a good job, we only realise after it has left. The Kaponya√s too, have a good tactic. While one is entertaining you, drawing your attention to him, his accomplices swiftly search, pick pocket and rob you of all your valuables. My sister once lost her hand bag full of money, travel documents and other valuables. Whilst she was focusing on some fellows shaking the car from behind the car, the others swiftly picked her hand bag from the passenger seat and vanished. That is what the developed nations do to the pauper states! Disruptive tendencies such as technologies and industries/companies would be ideal if you have the financial muscle. 26. Win them over, disarm and later discard. Point 24 by and large deals with aspects of this strategy but the idea here is to “detoxicate” a potential threat by wooing them over to your side, removing their venom in the process and later dumping them like garbage. By the time they realise, it will be too late to save their faces. This move practically neutralises and extinguishes them. Some myopic and egocentric politicians have fallen victim to this strategy. The Zambian Opposition party MPs had a taste of this in 2004/05. Thus, we have laid down some practical tips in relation to strategy antics in action. Many other strategies remain to be crystallised as they daily continually hatch in every mind. Adversity has propelled strategy formulation across the centuries by and large explains why some individuals, countries, nations and perhaps planets or galaxies are ahead of others. That explains further why some people suspect that the HIV is a clandestine product of some strategic countries so that they could wipe out the African race. That is debatable presently but let us peer beyond every seemingly √
Local name for a “Call boy” or vender
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simple and innocent “solution” or proposed remedy, it could be a ploy or indeed a decoy to hoodwink even the smartest eye, if that were possible. What is the explanation of perpetual poverty in the richly endowed continent of Africa? Could some one be playing tricks out there? As for you and me, strategy is a tangible tool for us to leave the world a better place than when we first arrived here. Once the above tactics are properly and consistently used, bearing in mind the context, I am not afraid of the result. Secondly, this will cut down the thousands of hours needlessly wasted on the planning table and instead focus on immediate action.
Bibliography A new international economic order: Its advocates and opponents, Budapress, Berlin, Budapest, Havana, Moscow, Prague, Sofia, Ulan Bator, Warsaw 1983. Ankomah Baffour, The Butcher of Congo, New African, October 1999 Ballin Ben, Bowen Rob et al, 80:20 development in an unequal world, educating and acting for a better world & tide etc, 2002 Blackhall Sue, The World’s greatest blunders, Octopus, 1989 Blundell Nigel, The world’s greatest mistakes, Octopus group ltd, 2007 printing Bower L. Joseph, Bartlett A. Christopher, Uyterhoeven E. R. Hugo, Walton E. Richard, Business Policy: Managing strategic processes, 8th edition, Irwin McGraw-Hill, 1995 Certo C. Samuel & Peter J. Paul, The strategic Management process, 3rd edition, 1995, Irwin/Austen Press-William Schoof Chirwa Joan, EAZ advises govt to have strong investment context, The Post, June 15, 2007 pp12 73
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Cohen A. William, THE ART OF THE STRATEGIST: 10 essential principles for leading your company to victory, Magna Publishing co. Ltd 2006 Cornell Linda, Beer de Frik, Development problems & Institutions, University of South Africa, 1997 Crainer Stuart, THE JACK WELCH WAY: Ten secrets of the world’s greatest turn around king, Magna Publishing co. Ltd 2003 Ellis Frank, PEASANT ECONOMICS: Farm house holds and agrarian development, 2nd edition, Cambridge University Press, 1987 Fast lane to success, Financial Accountant (IFA), May/June 2004, pp4 Financing for Development, United Nations, Moscow, Monterrey, Mexico, 18-22 March 2002 Forsyth Patrick, Understanding Office politics, Hodder & Stoughton, 1999 Gebhardt E Joan & Townsend L Patrick, How organisations learn, financial world publishing, 2001 Gerstner John, How to kill an idea, TOPIC, issue # 195 Ingram C. James, International Economic problems, John Wiley & sons, inc, new york, London, Sydney, Toronto 2nd edition, 1970 Jocobs W. Robert, Real time Strategic Change, Berret-Koehler publishers, San Francisco, 1994 Kashoki E. Mubanga, “Constitution-making process”, The Post, June 15, 2007 pp23 Kaswende Kingsley, “Africa capable of taking care of itself-Wade”, The Post, June 15 2007 pp2 Kotler Phillip, Principles of Marketing, Prentice Hall, 11th edition, 2005
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Krames A. Jeffrey, THE WELCH WAY:24 lessons from the World’s greatest CEO, Tata McGrawHill Publishing company ltd, New Delhi, 2002 McClure F Paul, New Entrepreneur’s guide book, Financial world publishing, 2001 Merkel Jim, Protecting creativity, TOPIC, issue # 195 Moonze Larry, “Debt cancellation may not come free-Nonde”, The Post, September 29, 2005 Ndulo Muna, Mining rights in Zambia, Kenneth Kaunda foundation, 1987 Newton John, Out of the depth: The autobiography of a man who was converted from slave trader to noted Minister, writer and author of the beloved hymn Amazing Grace, Keats Publishing, inc, New Canaan, Connecticut, 1981 Nkhata Lennard, Methodological options in Policy relevant social research, The study fund, Lusaka 1997 Oakland S. John, TQM: Text with cases, Butterworth-Heinemann; 3rd edition (June 2003) Oyelese Yemi, The men behind Lumumba’s death, New African, October 1999 pp8 Punabantu David, Punabantu’s reaction to Cheta’s letter, The Accountant (ZICA), April-June 2007 issue # 22 PP36 Slinn Peter & Snyder Francis, International law of Development: Comparative perspectives, Professional books, Abingdon, 1987 Starkey Richard, Welford Richard, Business & the Environment, Universities Press, 1996 Stewart P, Perspectives on theories of development, University of South Africa, Pretoria, 2005
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Symes R.F, Rocks & Minerals, Dorling Kindersley, London, New York, Auckland, Delhi, Johannesburg, Minich, paris & Sydney, 1988 Walter Rodney, How Europe underdeveloped Africa,………………… Zambia National Farmers Union, “RaboBank: Strategy in developing countries”, The Zambian Farmer, March 2007 Zinyama Fridah, “Govt to finalise Uranium Policy”, The Post, June 15, 2007 pp 13
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Chapter Five
“Many Japanese companies were built by men who felt strongly the importance of freeing Japan from dependence on foreigners…they had a nationalistic spirit that drove them”∨ The winning organisation Today’s winning or leading organizations are those that are strategic, highly responsive, aggressive, have a rich community corporate culture, proactive, adaptive, customer focused (internal and external), learning, lean, flexible, astute, assiduous, racy, thin layered, insignificant red tape, fluid, agile, experience phenomenal stupendous growth and expansion but avoid corporate obesity. These organizations are self evaluative, brutally honest, hire the best team players, have cohesive self managing teams, utilize Just in Time (JIT) systems, employ cutting edge state of the art technology, avoid information over load, have exceptionally excellent well developed data mining abilities, produce high quality out put, have progressively sustained super profits, minimal debtors, healthy liquidity ratios, few but manageable creditors, good capital structure, maximize on their distinctive competencies, adaptable, ever learning and above all, hire the best strategic-leadermanagers. These organizations have developed refined systems akin to the complex human body that promptly respond to stimuli and immediately adjust appropriately. In the event of a critical component malfunction, other organs swiftly move in, overlap and compensate while a solution is worked ∨
Business Policy pp 363 Stupendous growth=Amazing, rapid expansion
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out. These organisations focus on doing the right thing well rather than spending all the time spying on or imitating rivals. Thus, the key factor in the corporate success, as intimated earlier, is the presence of the right, well orbed, well fitted strategic leader that aptly reads the times and quickly alerts the other operatives to appropriately mutate. The smart sharp eagle’s eye is an invaluable asset that leads to zenith success. The selfsame industry leader is highly versatile, flexible, competent, multitasked and preferably multilingual akin to the modern gadgets that efficiently and simultaneously execute multiple tasks. The said leader articulates more than one major international language such as French, Spanish, Chinese, Portuguese or English. In coming days, Chinese (Mandarin) or one of the Indian languages will be indispensable because incidentally, these are probably the most intensely spoken languages in the world although largely localized. In summary, the strategic leader refines the neat organizational team tapestry ensuring that the firm continuously leaps to higher ground. Organizations evolve to the extent that they are allowed to. The allowance, flexibility and leverage level is generally imbedded within the organizational system in order to timorously respond to environmental stimuli, usually in a two-fold manner. First it reacts to what is immediately taking place within and outside the organization. Secondly, it proactively positions itself as it anticipates changes or shocks generated within and without the organization. Progressive organizations ensure that all critical factors are taken into consideration and positively galvanized to continuously reap the best returns on their investments and manoeuvres. One way that well-adjusted firms operate is to meticulously plan, stimulate and refine processes long before these are needed. The corporation develops these processes as it anticipates changes around and within the organisation’s environment. One such entity is the Roman Catholic Church. Having been around for close to 1, 500 years, the denomination has learnt the ropes through the ages to read the times and do what is right at the appropriate time. The Roman Church has almost all conceivable departments that holistically deal with a person, Some of the key wings include the social, spiritual and physical departments. Its no wonder the Catholic Church is a single formidable force to reckon with unlike the other disjoint and fragmented denominations born after the great 16th century protestant reformation.
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Statue of the great Reformer, Martin Luther As some one has aptly quipped, “defy the Roman Catholic Church at your own peril!”β No wonder some have asserted that this institution harbours the antichrist spoken of in the book of Revelations, I John and I Thessalonians. Although that argument could hold water, the author, using the human eye, tends to think that the Roman Church is simply strategic in its out look and operations. It swiftly responds to the need of the hour. A case in point is when the Charismatic chaos broke out and swept across denominations like wild fire, the said church developed shock absorbers and accommodated some of these tendencies and thus plugged the mass exodus of its members to other denominations. In fact, the institution can actually survive without its member’s tithes and offerings! “But how?” I hear some of you exclaim, because Ministry is costly business! Well, the entity in question is believed to be one of the major shareholders in some of the world’s largest corporations. It is believed to have heavily invested in real estate (the most stable investment), property rights and is largely the development engine in many developing nations. For instance, it harbours some of the best brains on the planet. While others are busy chanting away their endless over night choruses, the Jesuits are busy strategizing! They are said to be unequalled long term strategic thinkers and would give a Church position paper over a matter long before the issue even takes the centre stage! Other wings within the Catholic Church specialize on other critical issues such as gender, advocacy, welfare, economics, liberation theologyφ, and even politics! Now β
Anonymous Very strong and popular in South America. Refer to the Zambia Daily Mail of 9th January 2006 pp 7 for a somewhat fuller treatment of this theology, though the article was written to strategically isolate the Zambian Roman Catholic Church leadership from the rest of the world. The idea of the article was to φ
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who can argue against such a profile? In all these areas, the organization has continuously reinvented and refined itself over the ages. While other organizations are struggling to manage a meagre $ 2,000 on an annual basis, the Catholic organization is planning ten years ahead to get the $ 20 billion to be released for HIV interventions! That is the way any organization ought to be! It should be an organism! Therefore, the ideal organization schedules all value adding events long before they occur and prepare in advance. For a number of years, the author worked in an organization that was not well orbed and yet prided in being unpredictable. A typical working day was a nightmare and left the employee totally worn out. Many times people worked seven days a week without break (including at the weekend). Leave was a luxury and by that token, there was no social life left for employees. What was the root cause? Partly, perhaps the employees themselves had poor time management skills but largely, as earlier intimated, it was due to the erratic nature of the organization. Some things were planned in advance and standardized while others were unforeseen, unpredictable and in some cases, repetitive. When the senior Managers were confronted over the erratic and haphazard approach, they often bragged about the organization being highly dynamic and the only constant being change! Well, over the years, these uncoordinated activities begun to take their toll on the selfsame senior Managers’ health. The rest is history. Another organization in the same business and of similar magnitude and profile that the author worked for had a completely different outlook! Everything was systematized, well arranged, well standardized and planned way before hand. No one seemed in a mad hurry to beat deadlines. The high stress panic quake was conspicuously absent. To the contrary, that organization scored at every turn and hit targets without much ado. Furthermore, the working conditions were comparatively far better and more humane than the earlier organization. What accounted for the stark difference? I submit that it was strategic thinking in the latter case! Zambia terribly suffers from chronic and endemic procrastination. By that token, it is always reactionary and has water up to the neck all the time. If Stephen Covey’s propositions were more heeded, Zambia would not be in its present economic, social and political mess or quagmire. stigmatise the Zambian Church. Incidentally, many evangelicals are Imbibing this theological perspective in a bid to be holistically relevant.
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But how can the nation or organisation mutate to a winning position? How can Zambia, like Japan or South Korea arise from its economic ashes to success? It is simply by observing some of the following points: Imbibe and internalise a complete mental paradigm shift. Individual Zambians, are generally laid back and dependant. This laissez faire and pleasure driven attitude needs to be exorcised if tangible progress is to be made. It is a painstaking sweaty journey to success. When I worked in Mongu, I often used to pass through some semi developed plots on my way to the office. I learnt many lessons. Two very vividly come to my mind. One was positive, the other negative. The positive one really impressed me. At the beginning of a particular week in 2003, I passed by a certain incomplete house that was at foundation level. Noticing that some work was about to begin, I carefully observed the progress every time I passed by there. In less than a week, the mansion was almost half complete. That was phenomenal progress! I left town for a week and at my return, I curiously used the same established route the next morning. What a shock I got! The house was complete, painted and all fittings in place. They were even watering the lawn! I learnt a life lesson; to be focused, diligent and systematic. The next picture left me laughing all the way! I observed in 2005 that a certain recently bought plot had some thatched fence erected including a makeshift “mashasha” reed house. It had strange combinations of sticks, reeds and iron roofing sheet supported by some shapeless bricks, and wonder of wonders, a DSTV dish securely installed! I was really amused because I imagined the owner leisurely slumbering on a reed mat with a stone for his pillow while watching satellite TV on an 80-inch screen! What an attitude problem! Zambians generally want to rest before they get tired. Indeed, they are mentally crippled, laid back and somewhat lazy. No wonder they achieve so little in their life times. Adopt a learning culture. Learning organizations and nations are always winners in the end. They are never stuck in the obsolete fossilized railway tracks that worked a century ago that do not fit in now. Hire the right people who are not only ready to learn but willing to contribute effectively to the organizational success. These people have the right attitude, qualification, are competent, result oriented, diligent, net workers, consistent and excellent team players. It is not enough for one to only have the right academic papers and experience, we must go further to demand that persons deliver. If you have the wrong people on your side for a 81
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long time, you risk taking drastic sweeping changes as happened in one prominent international organisation. The drastic shift was necessitated to introduce sweeping changes from traditional to post-modern management. The case below demonstrates the scenario better: Hurricane Pwanya visits Ntota International
May 4 2007 (AP Photo/The Wichita Eagle, G. Marc Benavidez) **MANDATORY CREDIT THE WICHITA EAGLE/KANSAS.COM) Hurricanes and tornadoes are a rare phenomenon in Zambia, let alone the African continent. However, once they visit a locality, a devastating trail often remains as an annual reminder. Thankfully, they rarely visit. Tsunami and Katrina still traumatise myriads as hair raising memories annually hit the mental coast lines. In mid 1997, a hurricane visited Ntota International, though of a different kind. It was a reorganisation blizzard that forcefully blasted through the very organisational fibre. Unprecedented in magnitude, it left many once influential people jobless, apparently destroyed potential career plans, left many stranded, disturbed and destabilised families, forced some to resign, robbed churches of pillars, relocated many, brought in a relatively new cadre of Program Managers and discarded others. In some cases, it radically cut off the only regular income supply for many clans and finally, entirely changed the face of the Ntota Zambia branch.
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By the end of that year, the apparent “damage” had been done. The debris looked all mashed up, flattened and irreparable. The new challenge had begun-the daunting task of galvanising and raising new leaders to rise to the occasion. Their mettle would be tested by their ability to strategically lead the teams out of the apparent disaster effects, failure to which would result in their uprooting the ensuing year when the hurricane Pwanya was likely to visit again, though this time with a higher magnitude force classified around 5 or 6 on the scale. Evidently, its visit would definitely be highly volcanic as the scanner moved to the lower operatives. But was this hurricane really destructive in its intent and effects? How different is it from other regular catastrophic hurricanes and tornadoes? Two radical schools of thought confront us at this stage. The first, and probably most widely held by the Pwanya casualties, is that this storm was uncalled for, subjective, needless, unfair, cowardly, destructive, vindictive, poorly timed and would soon plunge the organisation into serious uncontrollable chaotic spiral. They argue that the problem spots were already known and senior management deliberately used a needlessly indirect vector to vindictively settle old scores. It was an inhuman cowardly act veiled in “objective processes” called interviews when actually a premeditated action, they claim. “Why didn’t they bravely inform the nonperforming Managers at the end of their contracts rather than subjecting them to an unnecessarily rigorous, demeaning and torturous interview process?” they complain. They further claim that many will be traumatised for life as they were not prepared to leave at all especially after many years of undivided loyalty to the organisation. They had expected a steady life long employment in return, yea, job security but all they got was a boot in return. They felt they deserved better as an entitlement. Furthermore, they argue that Ntota has thrown the baby with the bucket and would live to regret, for how would they turn around this titanic organisation with a largely inexperienced cadre of novice managers? Deep sorrowful groans, akin to those of Egypt (Rama?)shortly following the tenth plague still echo as families plunge into agony or strategically mutate to something else. To them, Ntota has lost its unique core value lustre and human face that it has hitherto prided in. That signals the end of that core value. Interestingly, a few among the casualties foresaw the carnage from afar and prudently prepared themselves. They have since picked up the broken pieces and moved on as though nothing ever happened. Unfortunately, the majority 83
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are deeply wounded by the mortal blow resulting from the “stab in the back.” They are licking their fresh wounds, as it were. The other school of thought holds that the move was inevitable and long over due. The drastic move had to be taken in the light of the many environmental changes and recent compelling internal occurrences. For one thing, the global trends dictate that life long employment is now obsolete. The age of steady life long employment belongs to the command economy era. Thus, the organisation was not obliged to keep excess baggage. A contract consists of two parts: Offer and Acceptance. In this case, the organisation had elected not to offer the job, after contract expiry period! Secondly, the interview was as objective as could be, carried out by probably the most competent internal team backed by an external consultant to monitor the proceedings and offer professional backstopping. Each candidate was objectively assessed and those found wanting not selected. Individuals offered skills and within the interview time frame market their wares. Sadly, the majority failed to tick although they had plied their trade for many years. Ideally, it was expected that they would excel but alas, they plummeted despite having been on the pitch for a relatively long time. A tough decision had to be made whether to retain dead wood or not. In other instances, the candidates were actually excellent but were not selected because they did not fit into the required profile, painful though it was parting with them. In addition to the aforementioned, Ntota has experienced unprecedented phenomenal explosive growth over the years and has mutated into a large, complex, bureaucratic, dynamic organisation needing a learning, agile, open minded and progressive ethical cadre of team leaders. As things stood prior to the interview, many incumbent managers had remained trapped in the ancient traditional bossy kind of management style when the modern trends called for team player kind of leaders with a passion to mentor, coach, build and bring about transformation in the communities where they live. The “born again” team, hewn from the recent interview, will probably fit into the latter kind of profile. Quality and responsiveness are key competencies these need to remain buoyant. The other aspect worth mentioning is the donor demands. The third reason was overall organisational changes that should have taken place as far back as 1990 but was delayed until 1997. In the mean time, the organisation had sent repeated indications and warnings of the pending changes but these were ignored. Every one treated each day as “business as usual” The rude shock came when the Pwanya crunch came. Documentary evidence suggests that shortly before the arrival of the last decade of the century, Ntota international 84
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realised that it needed to mutate if it needed to remain relevant to the times. The 1997 Pwanya maiden voyage was but a tip in the ice berg of what was in store. By that token, it is expected that the renewed lean organisation should deliver far much better than the former since all systems are potentially new and refined. On that score, the drastic changes hold much sweet water. But what really triggered the hurricane Pwanya? Theories differ ranging from environmental changes to hot/cold air clash. In between is the recent heart breaking unprecedented theft case at one of projects in which Ntota’s impeccable stewardship record was badly dented. This shocking hair raising experience has sent the organisation into a long over due reactionary spiral commencing with the team leaders, where the buck finally stops. The rippling effects now affect everyone. Thus, top management claim that the powerful hurricane came in good faith, was meant to be restorative and preservative. They had an option to let the titanic company sink with every one on board or allow some sink while the majority got on the lifeboats to continue the journey to prosperity land, having learnt some valuable lessons. Drastic unavoidable remedial measures had to and were effected. As we know, senior Management settled for a painful trade off: Prune the organisation for improved quality delivery thus preserving organisation image and maintaining donor confidence. As the stormy event recedes into the irretrievable past, with its attendant catastrophic effects, many Pwanya casualties have already began adjusting, switched to plan B, turned on the long redundant strategic formulation engine, refocused and reluctantly, though confidently, peered into the future akin to what the legendary Voyager space crafts did when the epoch making moment arrived of exiting the solar system for ever, years ago. For the rest still on board, the rugged debris is a fierce reminder of the ruthless annual visitor yet to return.
Meticulously plan strategies long before challenges arise. Problems will always boomerang once unattended to before hand. A typically strategic company does not wait for a crisis in order to react but works round the clock ensuring that tomorrow it is working at a relaxed pace. This has been Microsoft’s strategy these past years. It has generally been many steps ahead of its rivals. The same goes for other motor companies. Nothing is left to chance. For instance, one organization I know plans workshops, trainings 85
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and the list of potential participants a year in advance! For the average Zambian, this is puzzling because they do not see the need for urgency, hustle, bustle, hurry or worry! Acquaint yourself with your rival’s products, manoeuvres, organizational structure, strategies and study them, with a view to get ahead of them. Suck all the juice you can from the findings. Usually, we pour scorn on others, ostracize them and have nothing to do with them. But the wise executive sits, ingests the other’s products, pick some useful leaves and move on to improve on the product. That done, the entity is proudly able to come up with a superior product and service far above the rivals! I heard of an NGO that collects as many organizational structures models, simulates them and comes up with a workable relevant structure. No wonder that organization is ticking, despite having been in Zambia less than five years! (as at 2005). In a word, take time to study the manoeuvres of your competitors and ensure you proactively do something to secure your lead. Ensure you internally market the organization (internal marketing) before you venture outside. If the employees buy in, identify and support the organization, they will probably be the best marketers rather than the marketing department itself. Further, these employees will also carry out many informal market researches and give feed back. A motivated and appreciated employee does wonders to promote the organization. Half the time organization does a splendid job outside but is a dismal failure within. If Staff become perpetual grumblers and disgruntled, this kills the corporate image. Continuously train staff both as a motivator and also to build capacity for quality delivery on the field. Archaic, boxed and restricted thinking is a lethal poison to the organization. For example, World Vision Zambia strongly supports continuous training because it raises the competence levels though some people still dispute this point because from their experience, people remain essentially the same with minimal modifications here and there. Despite all the massive training, we may well ask, does education/training really change someone, or just modify their behaviour? Encourage Innovation and reward/applaud achievement. Celebrate success where apt. True delegation is a rare jewel in Zambia. Once one goes on leave they do not trust the person they leave acting. All the while, their hearts are in their mouths. Similarly, the appointed person is rather too 86
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careful not to out do the incumbent lest a volcano eruption be triggered. But people need to be given leeway to express themselves and thereby find fulfilment. Engraft quality in all the organizational systems. If possible, go for ISO° certification which in itself boosts the corporate image. Another way to build quality within the organization fibre is to adopt best practice strategies. Wherever new progressive oven fresh but time tested methods and ideas are mooted, ensure these steps are promptly documented and replicated to the rest of the organization. Effective Human Resource (HR)department. Ensure the right people hold these jobs or else you are headed for a crisis where the organization remains bereft of the best talent. People will take the earliest plane out of your “organizational inferno”. I once worked for an organization that went sour due to the wrong set of people in the HR function. Some of them were amazingly selective and perniciously anti employees and nearly wrecked the organization. As a result, the entity witnessed a mass exodus of key known quantities. Thanks to the responsive union, myriads more would have fled. The rest of us lingered on as we were helplessly stranded at the time. Wrong people will definitely wreck the organization profile and aspiration; it is just a matter of time. In an ideal setting the HR should play the role of coach, mentor and facilitator. The department should complement the Operations function to ensure that the foot soldiers on the field are not only well equipped but motivated to face the challenges ahead. In some organizations however, the Human resources unit does not even exist as a department, but is outsourced. In the author’s opinion, the HR should be a function of the Operations department, though employees are perceived the most valuable asset, hence the move by many entities to create a separate department that works hand in hand with other departments. Leadership – ensure the right leaders not bosses are at the various levels of the organizational helm. Leaders lead and constantly point to the mountains. They see the Bethlehem star and head there at full throttle. Leaders also challenge the status quo and thrive during the changing scenes of life. They dream and hurtle along as they influence others to buy into their dream. Where a true leader exists, people have a sense of direction, destiny, shared °
ISO=International Standards Organization certification. There are various ISO standards that organizations can get certification for after a thorough and rigorous testing process. The certification guarantees that the products thus churned out by the organization are of the highest international standards.
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vision, unity of purpose, one spirit, motivation and resolve. Those that do not voluntarily buy in opt to pack their bags and let the ship to sail to its destination. In Zambia, a deep leadership vacuum⌡ has vividly emerged over the years. Sadly, high social status, wealth, rank or position is wrongly equated to leadership. What could be further from the truth than this! A leader influences people regardless of his/her rank, position, status or even education! Further more, powerful leaders are exemplary, possess high fidelity level, have high integrity, are consistent, racy, passionate, largely people centred and live in the real world. To the contrary, bosses sometimes live in the imaginary world where they hurl out reality in the face of the clear, bare facts. This myopic view leads them to persecute truth and prefer unrealistic egocentric plausible options. A case in point is the Zambian Presidents, past and present, who have frequently been highly contradictory in their assertions, with absolutely no shame. Perhaps the word “sorry” does not exist in the Zambian vocabulary! For a long time, the author wondered why some human rights activists reacted badly when they spotted unfair treatment. These questions abruptly came to an end as soon as the writer left the Lusaka bordersℵ and landed where excruciating and abject poverty have free reign. It is amazing how self-centred people can hate reality sometimes. The best leaders beget other leaders. Strategic leadership is not only the CEO’s job but involves every stakeholder, in keeping with what Beatty & Hughes suggest. Foster strategic alliances, consortiums and partnership. In Zambia, most people and organizations prefer to work solo and in a rivalry manner. But the modern global economy demands that inter dependence be the order of the day. The major markets have shrunk and continue to be saturated unless new goods and services are innovated. This stand-alone approach to business has crippled many a potentially successful organization as the meagre resources and ideas have not sufficed to save the day. Evidence shows that there is power in numbers, alliances and partnership as this builds synergy thus creating a win – win scenario. Strategic alliances are built when organizations agree together so as to reap some benefit from the same customers they would other wise be fighting over. For instance, if cell Z and ⌡
Refer to Post editorial of Saturday July 19 2008 entitled “Leadership vacuums” Also refer to Mr Simon Kabanda’s moving article in the Post News paper of 12/01/06. He cites similar sentiments. The author once worked in a rural Zambian setting for a year and saw unbelievable poverty levels. Some people survived on the scarce wild fruits or even bare ash for food!...and yet the politicians of the day were loudly chanting egocentric praise slogans of having dismantled poverty. But is Zambia only Lusaka?
ℵ
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Celtel enter a strategic alliance with a view to beat the dreaded MTN. As they join forces, they could beat MTN in many respects such as coverage and the cost benefit to the customer. By the time MTN achieves the economy of scales, the cell Z/ Celtel alliance would have moved to another formidable level. The same could occur in consorting and partnership. But sadly, these rarely happen. They are as rare as in the political scenario where parties fail to merge to counter a rival party. If people and entities internalized this potential synergistic point, many tuntemba÷’s would have turned into chain stores by now similar to the SHOPRITE Checkers level. The Toyota Motor Corporation like scenario would have been a reality in Zambia too. Perhaps we need to wait and see what unfolds in the next few years as we hurtle along to a close of the second decade of the market economy scenario in Zambia. Another aspect worth consideration in Zambia is the availability of land. People can purchase large tracts of land in Mpika at K 15,000 per hectare and later lease it out or simply plant trees to cash in on carbon quarters as green business takes centre stage. Use cutting edge state-of- the- art technology to competitively get ahead. This means the company develops a potent communication and processing system. Further, it should ensure Wider Area Networks (WAN) and Local Area Networks (LAN) are installed and functional all the time. The Internet must not only be a playground but a data-mining field for various spheres. Actually, the Internet is a potential strategic tool to spy on other rivals or learn what others are doing and the anticipated trends. Further, a website is a cheap and powerful marketing tool. In these e-business days, products can be sold off the Internet as many have done in recent days. The author once heard of the little known organization, called Rural net Associates, that opened up a website. In no time received jobs from all over the world! That is the power of information technology once rightly utilized. Care however must be taken to ensure that it remains your servant not master! Many have wasted many a valuable hours browsing irrelevant web sites and missed the opportunity in the process. Some have even become Internet addicts. In these days of virtual reality, the huge multinational companies are fast becoming an endangered species, at least in the next few decades. The reason is that companies can now advertise on the Internet and only employ a skeleton staff, working from the comfort of their sitting rooms! Further partners from different parts of the world can work together amicably perhaps without even physically meeting but raking in millions! Video ÷
“Tuntemba” refers to makeshift stalls set up by small time entrepreneurs.
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conferencing is doing the trick. The Executive Excellence magazine of April 1999 clearly showed that virtual and paperless offices, teams and organizations will soon be the order of the day as they will cut down a lot of over heads, avert resettling shocks or disorientation for the home returning expatriate staff. Appropriate as well as cutting edge technology is and has changed the way people do business. One categorically stated that “Ignore IT at your peril”ϒ how true that statement! Today, more than anything else, ideas are the new currency for success. Develop that competitive edge and you will be miles ahead of the pack. Acquire and learn new skills set. This is especially critical in this dynamic global world. This acquisition could take place in different ways that include during direct foreign investment tenure as China has done or deliberately going out to learn new things. Mastering new skill sets is a life long practice if you are to remain relevant to your generation. Invest in Research and Development (R& D). Enquiry into the development of new products in a shorter time, estimate the product life cycle, ascertain when to re-launch, disinvest or diversify is key. Register patent rights. Keep the formula as a guarded secret as has been the case at the Coca Cola and Colgate companies. Go further to buy off other competitors if possible. A good example is the Coca Cola buying off PEPSI, Tiptop, Tarino and Crush. The company could either kill the brand or launch it as complimentary. Deal firmly with piracy, plagiarism where rampant especially in Zambia. Also advocate for stiffer law implementation. Carry out the cost benefit analysis, whether to outsource or simply manufacture from within. Rampant intellectual property violation is the order of the day in Zambia. This can be curbed in part by investing in Research and Development. Estimate/know and shorten the production/Product cycle. Maintaining a continuous product demand takes a lot of planning and strategic thinking. Certain things must be known about a product for the right safety gadgets to be applied. The first is that a product has a life time. Just like anything else, a product cycle must be known and the following are the stages of the product cycle: i. Market research stage ii. Analysis of findings stage/interpretation iii. Design stage ϒ
Banking World pp3, October 1990
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Test stage Launch stage Growth stage Maturity stage Decline stage Death or regeneration/re-launch stage
Once this product cycle is taken note of, then the strategic planners need to know when and what to do at every given stage. Many products die after some time while other brand names seem immortal. For instance, the apparently immortal Colgate and Coca cola brands have been around for many decades with little or no decline. Is it that they do not decline? Not quite, it is probably because they have found a niche and ensure continuous marketing or re-launching of the product periodically. These have kept/patented their formulas as guarded secrets. But the bottom line is the powerful marketing and the high quality global brand machinery maintained image by these companies. In addition, these companies periodically change the packaging or simply buy out all the emerging competing brands. A case in point are the Zambian drinks Tip Top, Tarino and Crush that were locally developed years ago but bought off by one of the huge multinational companies. Another industry whose strategy is to silence others by patenting is the Pharmaceutical that ensures that no other drugs or therapic methods are allowed except the codexed drugs. But Dr Rath1 has charged that the idea behind all this is the survival strategy to keep the world blinded to the cheaper and easier vitamin remedies to the HIV pandemic and attendant ailments. Rath strongly believes in the existence of the conspiracy theory with good reason. In strategic terms however, not only should the organisation be content with marketing goods and services, but should always be thinking of ways of shortening the product development cycle thereby getting ahead of all the rivals. For instance, the Ford Company decided to be developing a new vehicle every three years down from six years or so. But even then, the company may be forced to cut the product development cycle to one year and eventually months and weeks if the company is to keep ahead of rivals. The same holds for the Microsoft company. Bill Gates works feverishly so that he is constantly ahead lest Microsoft suffers the same fate that the IBM and Apple suffered years ago, though IBM is reportedly on the mend.εAnother potent strategy would be to 1 ε
Check the website: www4.dr-rath-foundation.org World now program; e-channel 12/12/2005
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diversify the business and delve into areas where others have not been and have an early lead so that the sources of income increase. This strategy is good if the organisation spots another potent opportunity or it is getting ready to close one product and begin another. Further, another strategy might be to disinvest in some of the many businesses that have been in motion and then reinvest in the core competencies. For instance, the ZCCM2 had its tentacles in almost all areas such as sports, health and education. When the evaluation was made, in all probability it was recommended that the dinosaur organisation spins off some of the non-core companies that did not add value to the organisation. In this way, the highly bureaucratic organisation was enabled to begin to show some signs of leanness but unfortunately, it had been in a coma for far too long and thus eventually died at the grisly hands of the IMF/world bank pressured politicians. In an ideal situation however, as the organisation spins off the non-essential businesses, of course bearing in mind the social responsibilities and ethics, the organisation is expected to concentrate on its strong points and thus become more potent. Yet another strategy is to break down the organisation into small independent Strategic Business Units (SBU) that will function profitably. In other words, the business units have their own structure, and function as profit centres. In this way, bureaucracy is reduced while innovation is encouraged. A company that has used this strategy effectively is the General Electric Corporation, led by the Jack Welch team. GEC was the most competitive organisation in the world (as at 2001). Explore foreign business opportunities. Think big and wide. Do not localize your selves nor limit your potential. Usually, natives always think of the local market only when a whole wide world waits to be tapped into. This is a global economy man! Flap your brain wings and fly around this borderless world! Encourage periodic informal times. This may include socials, casual dress days, parties or team excursions. In addition, you may include or divide the organization into cell groups in a given locality. These cells are the building blocks of the larger organism where people’s needs are addressed. 2
ZCCM = Zambia Consolidated Copper Mines. This was a conglomerate that was formed at the nationalization of all the mines in Zambia after 1981.This effectively placed all assets and liabilities in Government hands.
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Allow a sense of community and comradeship to evolve. People should relate as colleagues rather than as different social castes within the same organization as obtains in some countries in the East. There, once born in a particular class, you are not expected to shift to another. In other words, there is nothing of the “rags to riches” scenario where you accumulate respect as a result of your sudden wealth accumulation. In that society, you remain trapped in your birth caste regardless of what happens. In welladjusted organizations however, people are free to address each other by their first names in a bid to foster comradeship. They have cast off all communication barriers, after all, they spend more time working side by side together than anywhere else. This informal arrangement should also permeate the brain storming± sessions where people freely express themselves, freely throw in ideas not intimidated by the boss. In a word, status tags are hurled out of the window or securely locked away in a steel safe. Team spirit must freely flourish. Although the author strongly advocates for this liberal environment, due care should however be taken not to abuse this to the extent where people become carelessly familiar with each other, raising other ethical problems such as inappropriate relationships, authority channels spurning output reduction. In Africa, the liberal environment idea that fosters comradeship, innovation or free thought is largely a far-fetched dream at the moment (2005) because of the exceptionally wide power distance between the boss and lower operatives. In a sense, the Zambian culture mingles its way into the standard western world management principles to produce another unique brand of native management principles. For instance, an older workmate will not ordinarily take kindly to be addressed by their first name because they feel disrespected and degraded. Once the first name is mentioned in public by a younger colleague, their hairs instantly stand on end as their brains automatically get flooded with their ego and threatened esteem. In a flash, they think of their spouses, children, kinsfolk who dare not lower their impeccable image by virtue of their age. The mind skips some frequencies fearing that if other young people heard, they would quickly and thoughtlessly imitate leading to a social courtesy breakdown. That explains why the senior citizens are often at daggers drawn with the new and upcoming employees. Instead of concentrating on passing on the baton to the next generation, they devote themselves to an egocentric image preservation debacle though it is often veiled in other flimsy day to day differences. The actual underlying root cause is respect. That said, in progressive companies, well adjusted people ±
Though some do not think brain storming sessions are as effective as previously thought to be.
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flow well with each other. Succession planning is neglected viewed as a threat rather than as a tool. It is interesting how drunkards rarely take offence at drinking sprees when called by the first name but summon all their body muscles to frown at a colleague calling them by their first names in the office! All the facial contours are summoned, as it were! Granted, there is time for everything, time to be formal and time to be informal-each must wisely weigh the issues at hand. Another curious observation the author has noted is that Zambians tend to easily understand, excuse and accommodate a foreigner. For instance, if a foreigner (especially whites) walks around and enticingly sits on the veranda donned in a bikini, people murmur for a season but soon excuse the person because it is “normal” for the Muzungu. But let an indigenous black dare do the same, the whole town rises up in arms, shred the scanty clothing in confused ire. The motives are in question for such rowdy behaviour are questionable but that is the reality on the ground. The same inconsistent mentality obtains in the work place where if a foreigner heads, there generally will be super results recorded. The motivation rating usually will be high, people will be issue based with very little antagonism rearing its ugly green head. In short, professionalism reigns. But let a black muntu be at the helm, it will be tussle after tussle until people flee the organization. Running battles are the order of the day. Indeed, the PhD∆ syndrome seems to be deeply entrenched in our culture. Either the boss is the problem or the subordinates turn terrorists! Of course there are exceptions to the rule! Assiduously read the rapid environmental changes and position self properly using the 4 Ps (Place, Product, Price and Promotion) and quality issues. Find out what the issues are and focus being mindful of your rival. If possible and appropriate, segment and segregate your market. Increase your market share and strengthen your niche by differentiating your product to the extent where others imitate while you originate. Focus on the core competencies where you have a clear comparative and absolute advantage in some cases. Learn to use what is in your hand e.g. cheap labour force, abundant raw materials (such as cashew nuts, oil, land, appropriate factors of production), large market…etc. Ensure that the idle time capacity is minimized while the core competencies maximized. Further ∆
PhD in this context refers to “Pull him/her Down!” as coined by some people. Mr Charles Kachikoti once wrote an interesting article entitled “The problem is with us” in the Times of Zambia mid 2005. It is an excellent well researched and reasoned out piece worth reading. See Appendix 2 for fuller text.
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more, the organisation’s critical limits must be known so that certain excesses that can potentially snap the brittle organization are avoided. Encourage thinking outside the box, yea, think and live outside and beyond the box. Though already previously alluded to in an earlier part of this book, a culture must deliberately be cultivated and nurtured where people learn to think creatively outside the usual confines of our day to day lives. Imagination, innovation and creativity are the hotbed of progress. Where a traditional Manager holds the fort, there you will hardly see any new innovations and stagnation comfortably permanently sets in. The status quo will rarely be challenged. But the winning team of the 21st century must profusely churn out and actualise plenty new ideas. In a word, cultivate fertile minds that will constantly want to conquer new frontiers where no one has ever been before. In Zambia, the problem is that we spend more time on the methodology or implication rather than on system perfection, processes and developing new products. We are content to reach the bare minimum set standard and no further. Eke out a unique niche that cannot be easily imitated by present or future rivals. Dell computers imitated Compaq almost out of business and was itself in trouble for some time when other competitors imitated its products∩. In your case, ensure you beat out an invisible path that others cannot find or copy. In other words, have a guarded secret that is only the private preserve of the organization. For instance, in the service industry, have a unique custom designed service that will encourage people to return. Aim to have a distinctive competence (as proposed by Philip Selznick), a unique capability that others do not know about or exploit. Be inimitable! Curve a unique Niche. Strategy entails being able to spot opportunities long before they arrive, tenaciously and swiftly seizing them when they do. Among the many strategies that can be employed is when the organisation resolves to etch a unique path and product that others fail to imitate (Exodus 8:19 this is the finger of God!). To reach such a stage means the organisation has developed an unrivalled supremacy in a certain specific area and continues to improve on it. Usually, many entities have a tendency to succeed for a while (short term) and then sit on their laurels. While still glorying in their supremacy sunshine, their rivals imitate and improve on their products or services, while the reigning champion is unaware still busking in the supremacy sunshine. Not so with the organisation that must remain a perpetual winner! ∩
Refer to the Post Newspaper of 5th February 2007 pp 14 for an updated survival battle.
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A niche, then is defined as “that path or position regarding a product or service that cannot be imitated but uniquely belongs to that entity”♦In chiselling out a niche, a number of things have to be perfectly achieved such as the product differentiation, right pricing, timing, targeting, distribution channel, segregation, high continuous quality improvement, customer satisfaction, unique branding and product design. Develop effective exit strategies for the company and individuals in the event of either winding up the business or disinvesting in a certain product line/market. So much then for the strategies that push the organisation to the winning position, we now proceed to look at the organisation wrecking traits. This is worth the attention of every one looking for success or indeed failure! The Menacing organisational cancers Organisations need to be carefully handled or else they can easily flip and tumble over the precipice. They are like tender plants needing constant and diligent care by all concerned much like the way helpless babies are handled. The lethal points highlighted in this section are not 100% killers and neither is the list exhaustive. It is the duty of every strategic leader to ensure they navigate carefully among the rocks for the waters here are especially shallow and have many deadly sharp rocks. Watch out lest you run aground or hit an ice berg! Corporate obesity Obesity is fast becoming a number one health problem in the developed world where people get hooked on food, especially junk food, which they cannot regulate leading to some disorder. The problems vary from individual to individual but the most common is that people become too fat to work, walk or do anything. In some cases, they become too slow or in worst case scenarios, become prisoners of their habits. Similarly, organisations can fall prey of their own good intentions to their own detriment. The picture below eloquently tells the story:
♦
Definition supplied by the author
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Obesity... could also cripple an organization as much as people… As such, every entity must dread corporate obesity like a plague! Specifically, how does obesity grip an organisation? One of the usual causes is when, unawares, the organizations mutates into a large, complex and bureaucratic entity. This happens progressively as the organization gathers momentum, adds new projects whilst some parameters remain constant. For example an organization attracts more donors but does not expand staff wise. What tends to happen is that there will be too few implementers equal to the huge cash in flows. The organization becomes less agile, slothful and eventually highly bureaucratically controlled. In the competitive world the organization fails to respond to rapid charges in the environment because it is rigidly inflexible by its overly strong internal controls, akin to an over weight person. Risking a health catastrophe, an obese organization hangs on a spider web thread before it plunges to the corporate bone yard abyss. Rigidity The second menacing canker is mindless rigidity. Sometimes, one’s past success or failure works against them in the future. They loathe all risks or rigidly maintain the old winning ways when the context has drastically changed round about and needs fresh ideas to survive the fierce competition. Such organisations tend to be afraid of their own shadow or are much too confident thus becoming too stringent in their internal controls or development processes. What tends to happen is that the operatives feel stifled, unappreciated and vulnerable. The working environment becomes a drag, the organisation becomes impersonal, where people dread making mistakes and thus fizzle out any new innovations. Creativity is effectively killed. Many Zambian companies learnt the bitter lessons when the economy was liberalised way back in 1992. Many fell by the wayside while the strategic and sensitive organisations peeled off the bureaucratic tendencies leading to strategic growth responses. Those that stood rigidly firm on the onion like layered bureaucratic arrangement folded their bags not long after that. To remain buoyant, an entity must chisel out a good learning curve so
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that the organisation smoothly and efficiently adapts, mutates and transforms itself into sustainably winning body. Poor Human resources management record Organisations thrive most when they have a good motivating human resource record and functional policy that meets people’s aspirations. If they have career development prospects, are well treated, good staff conditions of service and capacities built, they will most likely stick around a little longer and help to move the organisations goals forward one step further than they would have ordinarily. However, even when all those good facilities are apparently present but they are not well treated or valued as per policy document, expect an exodus into and out of the organisation. Initially, many curious people who have previously heard good things about the organisation will continue to associate with or join the organisation only to be disappointed. With time, word gets round and then high profile star performers either quit or avoid coming on board altogether. Once that happens, the organisation begins the long steady journey to Calvary. Many firms have thus been wrecked, perhaps by one individual who turns out a menace. It is worse if that person is part of the human resource department. Peter Drucker taught us well to cease viewing staff as a liability but as an asset. This changes the whole picture. High staff turn over Closely connected to the previous point, people want to be well treated, valued and heard when they speak. They feel they have a stake in the running of the organisation whether it succeeds or not. If the ear is not granted, things begin to turn in their stomachs and they quit as soon as they spot a new opening. Some amount of staff turn over is normal and expected but if it becomes too high, it indicates a serious internal organisational malady. The earlier it is plugged, the better. Weak or no strategic leadership Leadership is indeed the need of the times for most African countries. We have far too many managers groomed to please their masters but very few leaders that go beyond the normal regular boundaries, yea, people that challenge the present status quo. As intimated, many entities suffer from a weak or leadership dearth. Leaders are strategic, forward looking, determined, resolute and scatter light wherever they go. Unfortunately, what we have littered all over the African landscape are traditional bossy managers around whom life revolves. If they are not at station, then all 98
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things ground to a halt, what a tragedy! This extends to the nations too. Had we more strategic leaders that peer into the future who effectively moved around with a shared vision, perhaps our fortunes would have been far more different and better. For now, we make do with what we have, if not radically improve on it. Over trading In the quest to gain more ground in the market place, some organisation go into an over drive that they cannot contain and in the process, this exertion begins to eat away at the organisation’s fibre. In the initial stages, this is insignificant and appears manageable but sooner or later, this apparently small stream widens into an unmanageable river. Such organisations usually end up in huge unsustainable debts that lead the organisation to death. In short, over trading has to do with doing or taking on too much than can be handled in the end leading to loss, dysfunction of systems break down. Unresponsiveness/bureaucracy & Red tape Over trading, as alluded to in the previous point has stages. One of them is when the organisation becomes too slow, unresponsive to stimuli, develops too many repetitive procedures which eventually tie the organisation down to its own detriment. Bureaucracy, although initially well meant has proved to be a nightmare, especially in the global economy where decisions have to be made quickly and timeously. Any thing that slows down progress means loss of market, money and face. A close cousin to bureaucracy is red tape. This refers to the elaborate and excessive paper work before any action can be done. Some times, some of these procedures are repetitive but no action can be done unless all the requirements are met. Bureaucratic institutions rarely go far, even when they have the best financial muscle. To remain buoyant, organisations must incessantly and aggressively fight all forms of bureaucracy and red tape. For example, General Electric Corporation was for many years the world’s most competitive company in the world in part because it declared war on bureaucracy. To demonstrate this, it reduced its multiple onion like management layers from 29 to 6. Today, it is agile, lean, responsive, flexible and ready to take on any competitor. The gigantic ZIMCO∧ crumbled because it became too large, complex, bureaucratic, lethargic, unresponsive, top heavy, poor quality delivery systems, too costly to run and to some extent, uncompetitive although it had effectively blocked ∧
ZIMCO= Zambia Industrial Mining Corporation/company FINDECO= Financial and Industrial Development Corporation
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all competition from the outside world. There was no way it could have survived when the liberalised economy came around. ZIMCO flourished in its hey days because it had no competitor. Dysfunctional teams Most organisations have groups rather than teams. The former is evidenced by high dependence on the manager who calls the shots and to some extent stifles initiatives and creativity. In a group arrangement, people tend to focus on their respective functional areas whereas in a team setting, every member is concerned not only of their narrow turf but the overall corporate goal. In all they do, they are cognizant of the overarching goal congruence and ensure that all they do fits into the corporate strategy like hand in glove. In other words, in a developed team, people interact, over lap and ensure the objective is kept in view whereas, a group member ensures that their part is well done and may not bother about the neighbour. As such, groups tend to have more dysfunctional attributes because people do not care to know whether they are appropriately contributing to the goal. This is where “Tuchawa≅” thrive leading to antagonisms within the working group. In well-adjusted teams, most of the team players are issue-focused professionals who take delight when the goal is being reached. They celebrate success corporately. Very few individual stars stand out in a team, though in real terms, some are more outstanding than others. The human body gives us an accurate picture of what an ideal team should look like: The bodyϒ The human body is a marvel to watch. It is composed of two systems that work simultaneously and harmoniously but independent of each other. One is the autonomous system while the other is the semi autonomous system. The autonomous system works independently of our conscious will through out the organism life, never going on striking or deliberately malfunctioning. Some of these autonomous functions include the circulatory system, metabolism, cardiac activities and even the involuntary reflex actions. These are incredibly dazzling functions! Think for a moment of the blood components, how vast and beyond comprehension to the human mind! Imagine the oxygen absorption and diffusion to the rest of the body! These ≅
“Tuchawa” refers to some maneuvers relational politicians use to get politically right and get what they want. ϒ Refer to I Corinthians 12:12,14-26; Romans 12:4,5
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functions are really amazing and caused the Psalmist to well up in praise (Psalm 139). The semi autonomous includes voluntary actions and coordination movements that the organism undertakes by the split second instruction from the brain through its multi million neurons. Among these voluntary actions include thinking, muscle reflexes and running, among other things. Within split seconds, the body responds and performs the brain commands! When these two systems are combined (though operate independently), they produce a complex system more than any state of the art super computer can offer! The body is able to function, grow, learn, and respond to stimuli through out life. Among these responses include defending the body from invading pathogens, patching up, cell replication and the continuous learning process. It has been heard that the body is able to automatically quarantine an infected part of the body until the disease has been cleared. An example is what happens when an infection invades the intestines. It is said that the intestines will quickly quarantine that infected part while leaving a small path way for other waste or digested food particles to pass, hence the septic swelling in the intestinal area. These germs are effectively sealed off and fought until the battle is won as evidenced by the puss. In the event of an injury, say loss of a limb or blood vessel rapture, the body again automatically repositions itself to compensate or mitigate the deficit. For instance, if one loses an arm, the body will automatically seal off the wound via the blood platelets, reconnect to the veins, thus completing the circulatory system. In other organisms reportedly found in the deep oceans, once a limb is cut, it regenerates and replaces the lost one almost immediately. Now, a strategic company acts in a well-coordinated fashion akin to the human body. There should be an autonomous as well as the semi autonomous environment in the same organization functioning simultaneously. Governments have attempted to imitate, thus, we have certain wings such as the police or health personnel that cannot go on strike. The others like the civil service can. I wonder if your company operates in a similar fashion.
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Information dearth In a number of cases, organisations suffer from critical information dearth upon which they can make informed strategic decisions. In this information age, right and timely data as well as facts make a world of a difference other wise the swifter entities carry the day. This information lack is as a result of many things such as not being correctly positioned in information’s pathway, poor networking, weak information capturing mechanism, weak data analysis and interpretation tools, or a sheer disregard of the dynamic nature of the global world. At other times, even internal factors can cause an artificial information bottleneck as people deliberately hoard information or mislead the decision makers. The sooner the communication network is refined, the better the quality of decisions made in response to issues as well as strategic positioning. Vague and unshared corporate goal
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“Where there is no vision, people perish” so goes a saying from the Holy Bible. Although seemingly a simple saying, it is none the less a pungent and pregnant statement. One of the connotations this saying sends across is that when people do not capture the vision, they are bound to keep questioning and in some cases even oppose it! Further more, if you have an ambiguous goal or vision, people become indifferent and do not devote themselves sufficiently to that cause. Most often, they only go as far as you coerce them and thereafter they take a commercial break without the slightest qualms. Thus, the strategic leader does well to clearly chart the course and endeavour have people buy into the vision who themselves will be qualified to carry on the torch to the next level. Sadly, many organisations run aground with outspoken leaders who trumpet their marvellous mouth watering strategy that no one in their organisation understands or supports! This is a bad indicator of imminent strategy demise. We do well to learn some life lessons from the HIV organism as given below: Lessons from the HIV The HIV is an interesting organism from which the strategist can learn. It is believed to be highly difficult to detect with the average conventional machines in the first 12 weeks of its presence in the body√. Scientists tell us that once the virus enters the body, it attaches itself to a white blood cell, enters the cell nucleus and reprograms the DNA so that the cell begins to replicate the defective cell at a rapid rate. By the time the body realizes that an invasion has taken place, the body defence cells have been out numbered. In effect, the virus destroys the body defence system. When people begin to take ARV∧s to inhibit further defective cell replication, the viral load reduces for some time but remains in the body never the less. Some have asserted the viral load can so reduce to the extent that someone can even test negative! But does that mean the person is well? Not at all, unless a miracle has occurred! What actually happens is that the virus retreats to the “Defence Cell factory” the bone marrow and other organs where no medicine can reach. When the external environment becomes favourable or the virus develops resistance to the drug (Usually after a five year cycle) , the virus makes its appearance once again to cause untold havoc. This menace continues to the point a person dies. √
Antibody test Anti Retro Viral drugs- These drugs inhibit further progression of virus replication by blocking some processes in virus progression.
∧
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To date, over 25 years after its discovery (HIV), no tangible cure has been found to combat this virus. Why should this be after many claims all over the entire world? Well, according to the present information, the virus keeps mutating, and here in lies its genius. If a vaccine is developed today, the virus will have mutated tomorrow, rendering the medicine useless. There appears to be a high level of sophistry in this virus to the extent that it outwits the equally complex body. In a sense, that is how strategic organizations and entities should be, always mutating and positioning themselves in survival places. Progressively successful companies imitate the human body system as well as the HIV elusiveness and sophistry. Such organizations never die. Unlike the progressive perpetual going concerns however, the HIV has one fundamental flaw, it works its way to death as the body decays and dies. In one sense, it achieves its goal but in another sense, it presses its own self-destruction button!
As we come to a close of this magnificent chapter as relates to winning firms, we re-echo the desperate need of the time: To have lean, organic, responsive quality organisations that it into the dynamic times in which our lot falls. Is your organisation such an entity? =============================================== Bibliography Banking World, Knowledge is born in the market, October 1990 Bellingham, Richard, Virtual teams: the manager’s pocket guide to, Jaico Publishing house, 2003, Blyth Mike, Garland Jean, AIDS is real and it’s in our Church, African Christian Text books, 2003 Bower, Bartlett, Uyerterhoeven, and Walter, Business Policy: Managing Strategic Processes, 8th Edition, Richard D. Irwin
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Brake Terence, Managing Globally, Dorling Kindersley Limited, 2002, London, New York, Munich, Melbourne and Delhi Brett Michael, Agents of Change, Banking World, April 1992, pp49
Building Your Business, Thorogood Publishers, London, 1998 Cateora R. Philip, International Marketing, 9th edition, 1996, Irwin McGrawHill, Boston, Massachusetts, Burr Ridge, Illinois, Dubuque, Iowa, Madison, Wisconsin New York, New York San Francisco, California St. Louis, Missouri Chambers D Andrew, Selim M George and Vinten Gerald, Internal Auditing, Pitman Publishing, 2nd Edition 1987 CHAMP, Living with HIV/AIDS handbook, 2003
Dixon Patrick, THE TRUTH ABOUT AIDS: What you must know, what you can do, Kingsway Publications 1994 Green John, Is bureaucracy dead? Don’t be so sure! Chartered Secretary, January 1997 issue pp18 Holy Bible, I Corinthians 12, New International version, International Bible Society, 1973
Holt David H., Entreprenuership:New Venture Creation, Prentice-Hall, India Pvt Ltd, 2006 Heller Robert, Managing Teams, Dorling Kindersley, 1998
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Kingsley Kaswende, Bureaucracy complicates business process-Swart, The Post, September 29, 2005, pp 15 Mitroff I. Ian, Why some companies emerge stronger and better from a crisis, Sound view executive book summaries, 2005 McClure F Paul, New entrepreneur’s guidebook, Financial world publishing, 2001 Oakland S. John, TQM: Text with cases, Butterworth-Heinemann; 3rd edition (June 2003) Pugh G. David & Bacon R. Terry, Powerful proposals, Magna, publishing Co. ltd, 2005 Salton J Gary, Organizational Engineering: the manager’s guide to, Jaico Publishing house, 2003 Silverman David, The Theory of organizations, Heinemann, London, 1970 Townsend L Patrick & Gebhardt E Joan, How organisations Learn, Financial World Publishing, 2001 Turning Information into knowledge for competitive advantage, management Accounting, April 1998, pp26 Tulgan Bruce, Recruiting the workforce of the future: the Manager’s pocket guide, Jaico Publishing house, 2003. United Nations, Basic facts about the United Nations, United Nations Publications, 1995
Vision Korea Execution committee, Revitalising the Korean Economy toward the 21st Century, Business Times, December 1997, pp27 106
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Willis Richard, The AIDS pandemic, Stanborough Press Ltd, 2002 World Vision International, Channels of Hope training materials 2005 World Vision International, HIV/AIDS: Preventive education staff hand book, 2002
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Chapter Six
Kasama Sugar, May 2007 “Refine the quality chain and you are in perpetual business!” BS The universal corporate panacea
When talking about potent strategy in modern business circles, the organisation and individual seek to curve the most efficient and effective route that outwits all actual and potential rivals or sets the organisation apart. In one sense, there is move towards an interdependent “win-win” scenario in the contemporary business environment where the corporations agree to share the market or cooperate in benefiting from the same niche or target market/segment. In another sense, each company would like to weave an especially unique path that cannot be easily imitated by competitors, since the competitively modern uncertain business environment is all about survival of the smartest and fittest. One thread however, weaves through all products and services for successful entities, no matter what their location might be on this terrestrial ball. That thread is crystallized in two words TOTAL QUALITY. The word ‘Total Quality’’ is now an established buzzword wherever one turns. When profit is the subject, competitive advantage and zero defect comes up, the word Total Quality Management (TQM) or its implication linger some where in the background. The business world is hailing this newly found panacea as the ultimate solution to all the profit nightmares that haunt businesses. Turn to every media of communication where business is discussed, TQM is mentioned. The printing press, the electronic media, the business journals, the magazines and indeed the business textbooks are all replete with this concept. In America, TQM is relatively a new phenomena having been practiced slightly over a few decades. The same holds true for the other parts of the World too. The Japanese however have been the masters having practiced this for well over five decades. As earlier intimated most of the contemporary Management 108
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books do not fail to include the issue of TQM because it lies at the very core of business success in the 21st Century. TQM has sometimes been called “The silver bullet” as it is believed that if properly implemented, quality efforts guarantee phenomenal profits, market share expansion and unprecedented exponential business growth. Naturally, everyone is looking for profit! A plethora of TQM books sit on bookstore shelves across the world but few stand out. Many authors deal with the pertinent issues that affect the modern business of the 21st century. All that needs to be said about strategic management is successfully delivered and clearly spelt out for any reader to understand. One does not need to be a high profile Manager to grasp most of the relayed TQM concepts. Most authors acknowledge that TQM is not a ‘by the way’ thing but that it lies at the very heart of the organisation. It is practically impossible to ignore TQM today, bearing in mind that the customer is king and must be continuously pleased if to remain in business. In the midst of unveiling TQM, strategy comes to the fore. Strategy is defined as ‘The pattern or plan that integrates an organisation’s major goals, policies, action sequences into a cohesive whole.’⌠ This means the organisation must be consistently aware that it is not isolated but in a constantly changing, uncertain and volatile environment. If that be the case, the firm must swiftly move with the times so that it fits well within a given setting. In keeping with the quest to remain relevant, buoyant and competitive, the modern manager must involve as many stakeholders in the organisation as possible, because people feel left out when archaic, clandestine and boxed planning methods are employed. But where people are involved from the planning stage, no matter how minimally, they voluntarily go all the way to ensure success. In a nutshell then, Strategy seeks to achieve the following: (i) A clear objective and direction. (ii) Introspect with respect to the outside competitors, hence knowing what to do and when. (iii) Identify the Strengths, weaknesses, opportunities and threats that impact the organisation whether internally or externally.
⌠
James Brian Quinn as quoted by Certo & Peter, The strategic Management Process, pp6
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(iv)
Subsequently, zero in on its core-competencies, which would easily give a competitive advantage, and also to use the resources as best as possible. (v) Identify the major factors at play in the environment that will affect the business. Examples are the political, religious, social and legal environments. These must be carefully monitored as the business outcomes largely hinge on these, one way or the other. (vi) Mark which actions from rivals need meticulous scrutiny. To survive, an organisation must be scrupulously meticulous so that nothing catches it by surprise.
All the above issues are addressed by a good strategy. Although this may be true in a local scenario, today’s organisation must contend with the fact that the world has become a ‘Global Village’ because what ever happens at one point of the globe, affects the rest of the world. The ‘ripples reach every shore line’. Deeply ingrained in this global village scenario is the need to produce quality goods that satisfy the international consumer and ultimately bring about product loyalty. Quality is then intertwined in all that is going to be bought or sold. Strategic Management in an organisation operates in a particular framework. It has been mentioned that global, quality and social issues bombard the organisation from outside but there is need to mention that the organisation has to function as an organism gathering information and processing it to get a feedback. The Operations, Finance and Marketing departments do this. The strategy crafting process among others, covers the environment analysis, direction establishment and strategy formulation. The strategy implementation and control are equally crucial. In an ideal situation, the organisation should function like the human body, constantly agile and mutating. To achieve the above mentioned posture, the average entity goes through various phases that include: 1. Environment analysis (the context in which the organisation operates noting the changes, happenings etc) 2. Establishing organisational direction (Visioning, dreaming, strategic thinking etc) 3. Strategy formulation/crafting, shape and structure etc. 4. Strategy implementation and monitoring 5. Strategic control, evaluation and redesign 6. Strategic international operations 7. Strategic Total quality Management 110
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8. Strategic social and ethical dimensions 9. Strategic Operations Management 10. Strategic Financial Management 11. Strategic Marketing and control It is a curious fact that Total quality is either mentioned or referred to indirectly in many successful entities within its fibre. As one traverses any winning firm, quality pops up and glows brightly in the background. The said analysis is where the organisation monitors what is going on within and outside the organisation. Among the many things reviewed includes the need to identify both the present and future strengths, weaknesses, opportunities and threats that buffet the firm. As earlier alluded to, this is known as SWOT analysis. The acronym SWOT stands for: S: Strengths W: Weaknesses O: Opportunities T: Threats The Strengths and Weaknesses relate to the organisation itself as it carries out introspective and retrospective scan. The Opportunities and Threats are from outside the organisation and beyond the control of the entity. In other words, the threats and opportunities lie in the immediate environment in which the entity operates and beyond the firms’ control, rather, it is the organization to adapt to the changing scenes. As the firm seeks to excel having checked within, it looks out for openings to clinch the best deals around as well as counter the competitor threats such as new market entrants, new cheap high quality products, substitute products or even government policies which threaten the business. All these must be identified and addressed accordingly. This analysis is addressed in three ways: 1.The internal environment- among many areas, this has to do with human resources and marketing within the organisation. (focuses on the internal organisational weaknesses and strengths) 2. Operating Environment – This has to do with players in the same business such as suppliers, competitors and customers. This includes new and emerging industries and market entrants. 3. General Environment- Under this head, we encounter certain issues which affect the organisation such as the Economic climate, Ethical and political
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issues. (# 2 & 3 focus on the external threats and opportunities which the entity has to either contend with or grab the lingering opportunities) In a nutshell then, when carrying out an environmental analysis, scanning as well as forecasting are at play. Implementation, monitoring, evaluation and continuous improvement crown the analysis process. Other areas deal with establishing the organisational direction. After the environmental analysis is completed, and the results determined, the logical thing is to commence paving the way for the organisation, ‘Which way forward?’ is probably the question echoing on many a mind at that stage. In setting direction, three ingredients are commonly used and these are obvious but for the sake of having a common understanding, it is prudent to clear the path. The said attributes are: 1. Vision- this is a desired end in a more general sense. In other words, a vision states goals and direction in broad terms. The question probably at hand is ‘What are we up to?’ ‘What do we want to make?’ 2. Mission-This is the purpose for which the organisation exists. Why is the organisation here? What are the aims? These are but a few issues addressed in the mission. Every company should have a statement, which summarises the existence in capsule form. The mission addresses those core values of the organisation without which the company will have no reason to exist. Usually, the quality issue is always slotted in the statement so that it acts as a powerful marketing tool. 3. Objectives- this is the Vision in more specific terms. Here, the specific target group to which the organisation directs its weight and efforts are clearly brought to the fore. As the period unfolds, the organisation is constantly asking whether it is meeting its objectives or not. This is a good checkpoint or benchmark. The 3 points above are the very heart of establishing Direction. Notice that even here TQM finds a special place. The delivery systems must be in tip top shape to sustain high quality… Further still, the strategy formulation issues as well as implementation have to be considered. The managers responsible must first understand what they are about and in that context, the plans are implemented. The formulation process takes place in at least three levels namely, the Business, the functional, the global and the corporate respectively. All these levels look at 112
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the company with respect to the environment. For example, the advent of customer sovereignty is encountered in the business level, the need to improve all the time and yet to maintain goal congruence and innovation are met within the functional and corporate levels. When the formulation has taken place successfully, implementation is inevitable. The implementation process is critical because that which has taken long to arrive at is now being put into motion. Sadly, this stage is usually under valued or even overlooked in many a process! We assert that more care is equally needed here too. A number of stages are suggested to be taken into consideration as implementation takes place: 1. We must determine how much change is needed to accept the new strategy. A big company like General Motors has taken several years to steer around and yet still in deep weeds. At implementation stage, magnitude of change must be arrived at so that the right momentum is gathered. 2. We need to analyse and manage both the formulation and implementation meticulously. It is one thing to formulate and quiet another to implement correctly and in the right doses. 3. There is need to decide which mode to be used in the implementation process because there are different approaches. One option is to be autocratic and declare that the entire organisation must tow the top management line. Another is to consult the middle management on the modalities and let them implement as they see best. Still another would be to consult the whole organisation and each person implements as seen convenient. Each of these approaches has problems that beset them. Sometimes quality is compromised, especially if it is left free for all to implement as they see best. When the formulation and implementation are well done, the next is to see that this plan is working according to schedule and in line with the desires of the strategy architects. The process at hand is dealt with under strategic control and is slightly different from the traditional control we have in ancient management practice. This is basically the monitoring, evaluation and improving of activities. Continuous improvements or KAIZEN is another buzzword in management circles. (Kaizen is a Japanese word, which talks about continuous improvement of products and services) When control is in place, it ensures that the organisation is kept on course all the time and emergent strategies are imbibed at the right time and at the appropriate levels. Control helps the strategic manager to achieve the organisational 113
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goals. As can be seen, quality rears its head even here because continuous improvement is hewn from TQM! At some point, Strategy takes us into the international environment where it must be applied. On the international scene, many complexities with respect to strategy are encountered. Here, cross border trade, different cultures, attitudes and tastes must be smartly and adequately addressed. It is difficult to find one universal strategy because different cultures interpret things differently. Their value systems are poles apart in some cases. As they say, “PLAN GLOBALLY BUT ACT LOCALLY”, better still in strategic terms, “Think long term, act short term”√ This phrase summarises the international strategy as brought out in international marketing. Among the issues tackled on the international scene is the need to be customer oriented as far as possible, respond promptly, churn out high quality goods and services. Strategic acting is critical. Trade agreements such as the General Agreement on Trade Tariff-GATT, (now WTO) are intercepted. The tariff barriers and regional economic groupings cannot be ignored on world trade. More significantly is the advent of the usually huge multinational organisations which have feet littered across many borders and buttressed with a large work force, though there is now a trend towards smaller, lean and sometimes virtual agile and buoyant organisation in the rough and turbulent economic tidal waves of the 21st century. That is how the Japanese have triumphed thus far over the Americans and the rest of the World. Today, the Japanese are the foremost quality car producers capturing over 20% of the world market, as the Toyota reigns supreme for instance. They have carried the day both in terms of number of cars sold as well as superior quality, thus curving a cost effective unique niche although the Americans seem to potentially hitting back by using computer simulations and shorter new model roll outs. Never make a mistake of exposing your technology to Japanese or an Indian as they will quickly copy and improve on your product idea beyond your recognition and yet it was initially your idea! A story is told in certain circles that some parts of Europe do not allow Indians or Japanese to go beyond a certain check point. Other nationalities, especially Africans are freely allowed to tour. One wonders why but upon scanning what is beyond that point, it becomes evident that a lot of the state of the art technology is hidden there and must be protected at all costs. The African and others are no threat as they are often true and “genuine” tourists in the truest sense of the word who simply marvel and go away empty headed! Not so the √
Billy Sichone
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Japanese or the Indians! The fellows are far too smart armed with photographic memories and once they pass through, they will have carried along all the technology with them! Could it be, as strongly believed in some circles that these people have good mathematical heads while others do not? We have no telling. Another interesting story is told that the first world countries develop technology valleys such as the Silicon valley where technological ideas are hatched, harnessed, nurtured and improved upon. One country in Europe is said to hire the best brains in the world to this facility on short term contracts which they eventually fizzle out after they have sucked all the cutting edge technology out of an individual. They ensure a native national supervises the hottest wiz kid on the block, learn the ropes and eventually discard the poor fellow! To keep some one on a high pay roll for two or so years is not easy but what they get in return is ten fold what they “invested”. Let us discard the mere tourist mentality and get down to serious business. As earlier alluded to, TQM shines the brightest in this chapter. It sparkles in almost every sentence. The Total quality issue has been around for some time now. It first had its proponents in the late 1940s and 50s. Interestingly, they were all Americans! The three Quality Gurus, as they are popularly known are E.W. Deming, J. Juran and P. Crosby. All these propagated that quality was the master key to market expansion, long before the American Multinational giants realised. The first and foremost of these is Deming who got his Bachelor’s degree from Wyoming University. He went further and got his Doctorate from the Yale University. Thereafter, he used statistics in the US weapon industry. After the Second World War, Deming went to Japan to help the Japanese rise from the ashes after the Atomic bomb disaster. He began to lecture leading to a successful quality indoctrination of the natives. There has never been a turning back. The Japanese were initially notoriously renowned for poor quality goods but after those power packed and inspiring lectures, they began to improve quality. Deming went back to America but was later recalled. This led the highest honour to be bestowed upon him. All the while, the giant multinational titanic corporations were not for a moment aware that the Japanese quality was making inroads into the market. Deming proposed 14 points which, according to him, were to guarantee success. The quality we see today is but a fully-grown tree of the seeds sown by Deming. Juran was more or less a contemporary of Deming except that he came slightly later. He too taught quality in all aspects of the product. Like Deming, he was honoured as well with the highest medal in 115
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Japan. Crosby is considered one of the gurus because of his outstanding contributions to the Total quality movement. But what is Total quality? It can simply be answered as ‘the move towards better quality products and services at all levels’. In the past, defects were reacted to and corrected after they passed through the production chain but with TQM, the organisation is pro-active. The goal is to get a zero defect and also to continuously satisfy customers. There are certain characteristics, which are universal as listed below: i. Total quality is customer driven. In other words, what customer wants and desires is what goes, the customer calls the shots, as it were. ii. There is a strong quality bias in all that is done. iv. There is never a time when quality is stagnant. The organisation is ever improving-Kaizen v. There is more employee participation in the planning, implementation and monitoring of the process. In the past, some areas were only for the top brass and certain special departments. The organisation of the future has moved away from the old way of doing things. Total quality affects all areas of life today. If the quality is poor, the company risks losing market share and eventual death! Countless academics and authors have poured out huge TQM avalanches over the years showing the importance in our days. Although many have heralded it as the grand panacea, the TQM movement has not advanced unnoticed or unscathed. Some think it is just a passing craze like other programs. Others have talked a lot about it but have not internalised it into the organisation system so that it virtually becomes invisible to the naked eye, because it is so ingrained into the corporate work culture. By the same token, myriads have attended workshops and courses but as soon as they got back to base, they closed their files and continued as before. In many instances, the top leadership does not seem to support TQM, while in other cases are too cost conscious, or demand instant results. What they forget is that TQM takes time to cultivate and results long term. It is a process. Thus, the Japanese are more proficient because they have been at it for over four decades and their cultural values support teamwork which has to be learnt by the individualistic capitalists. With time, the proud and static Americans realised the quality importance and thus set up the Malcolm Baldridge prize in 1987 in a quest to boost market dominance. It became law. Other standards like the ISO 9000 are worth looking at. There are five standards in the ISO 9000 series but the 116
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most frequently used are ISO 9001 to 9003〈. Many organisations demand ISO certification if they are going to do business with any client. The ISO 9000 basically looks at the process used to produce goods. However, the ISO 9 000, does not look at many other factors such as interpersonal relationship, circumstances, attitudes and feelings. ISO focuses on processes. The future organisation has no option but to revisit the quality standards and also to apply for certification if they are to be key successful players on the international market. Having traversed the exciting quality landscape, one feels as though they begin to descend from the mountaintop. They are at a ‘quality anticlimax,’ as it were. The other equally important strategic components include the social responsibility and ethical considerations. The corporate social responsibility issues (i.e. paying back to community by sponsoring contest, rehabilitating clinic etc) orbit around whether a company should or not do any social good, which is not directly linked to its main objectives. By that token, there has been considerable debate over this in recent years. Some think the benevolent acts belong to the state while others view it is a corporate obligation as well as a powerful marketing tool. That said, increasingly, more and more companies have opted for the benevolent and marketing option. This double edged sword cuts down on tax and builds corporate image It is crucial to look at the supporting departments, which are crucial to smooth running of the organisation and also for strategic purposes. The Marketing function for example, helps not only to market the goods but also to carry out research, which is crucial to find out the customers tastes. The Finance helps the organisation to “count its mean” and avoid all extremes such as under or over trading. The balance sheet∅ must cease to be the centrepiece of organisational operation and development, although equally crucial. In some organisations, the Human resources department ensure the right staff are hired and developed. All these must be viewed as parts of one organism so as to maximise on efficiency and effectiveness. As the perceived universal panacea, quality standards will remain the main thing for
〈
These standards have to do with product and process quality standards. Specifically, ISO 9001- 9004 relates to quality management as well as systems. Various other standards exist for different industries. For instance, the ISO 14000 series focuses on the environment. It is worth knowing your relevant standards before you embark on the certification process. ∅ Jack Welch would rather focus on cash flow not balance sheet ‘The Jack Welch way”
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decades to come but what is more important is to make TQM work for us and not remain merely an ideology. ======================================================
Bibliography Bowler J, Bartlett C, Uyterhoeven H, Walton R, BUSINESS POLICY: managing strategic processes. Irwin McGraw-Hill, 8thedition, 1995 Certo C Samuel & Peter J Paul, The Strategic Management Process. Chicago: Austen Press/Irwin, 1995 Henderson Gordon, “Quality is key”, Banking world, December 1992 pp 26 Higgins C. Robert, Analysis for Financial Management, 5th edition, Irwin McGraw Hill, 1998 Oakland John S & Porter J. Leslie, Cases in Total quality management, Butterworth Heinmann, 1994 Oakland S. John, TQM: Text with cases, Butterworth Heinemann, 2003 Patton Quinn Michael, Qualitative Research & evaluation methods, 3rd edition, Sage Publications 2002 Pugh G. David & Bacon R. Terry, POWERFUL PROPOSALS: How to give your business the winning edge, Magna Publishing Co. Ltd, 2006 Robertson Ritchie D, “The customer-friendly way to deliver the services”, Banking World, December 1989 Tuke Michael, “Success will go to the best able to manage change”, Banking World, December 1989
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Chapter Seven
Plane crash “Where the super human fails to tick, TQM easily sails through” BS Reasons for TQM failure Although TQM has become a household name in many industries, high company failure incidences still abound. Many once promising and well meaning entities have landed in the corporate bone yard despite the frantic efforts to mutate into profitable organisms regardless of the standard ISO certification. What exactly goes wrong? At what point do myriads miss the road? Is this confirming the long held suspicion that TQM is just a passing fad? This chapter briefly explores why TQM seemingly still lamentably fails in some instances and what drastic remedial measures to apply. As earlier intimated, it is an established fact that Total Quality Management (TQM) has been a buzzword in the last few decades in the progressive industrialized western and far eastern countries. In Japan however, TQM has been there slightly longer than five decades dating as far back as the mid and late nineteen fifties when E. W. Deming proclaimed quality principles as a lone voice in the wilderness. Today, this is not only in discussion form but is a goal sought after by every progressive organisation across the world. There is increasing demand to factor quality into all aspects of the processes and products such that TQM becomes virtually invisible to the naked eye but automatically permeates all spheres. It is, as it were, smartly intertwined and internalised into the corporate culture. Unfortunately, there have been myriad testimonies that have buffeted the “quality shores” which suggest that TQM is a lamentable failure and just one of the passing “Management fads”. Many have undertaken to explain the root causes of such dismal failures among them being Brown, Hitchock and Willard whose classic book “Why TQM fails and what to do about it” gives valuable insight into the frequent TQM pitfalls. There is scarcely any book on the market that 119
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diagnoses the problem and offers tangible solutions as this book does. Many other authors also state that it is one thing to have a TQM program running in the organisation but it is quite another to continuously score long after the certification process has taken place. Hence, it is good to note that TQM is no guaranteed universal panacea but an aid towards attaining the “silver bullet” principles. As we scan the TQM book plethora, it is fitting to reassert that the no book provides a 100% full proof solution to organisational woes but they merely contribute to the ultimate complex solution. As Brown et al and other TQM gurus have rightly stated, the TQM remedial books do not attempt to supply a magical answer for success, but rather, they provide useful information to guide efforts so as to avoid a recurrence of similar pitfalls in future. This author presupposes that the readers of this chapter by now know what TQM is having somewhat dealt with it in the previous chapter. But just in case some reader has not done their duty, we re-echo the question: TQM, what is it? Well, TQM can be loosely described as that approach where the procedures, processes and out comes of any activity are of the highest quality with no defect at all◊. This presupposes that quality is integrated within the system and activities need not be repeated. Doing something once with all perfection is the goal thereby cutting costs and raising profit. The TQM failure scan commences with the examination of the probable reasons why organizations fail to kick start or take off during activation stage. Start up includes the initial stages when the organization embarks on TQM initiatives. Myriad stories abound of many companies that begun well but alas fell by the wayside along the TQM path. Among the major reasons for failure is basically lack of top management commitment. This is a situation where management either does not support the initiatives at all because some key people in the strategic orbs do not see the relevance or do not believe in the importance of the same. Grand statements are proclaimed in support of TQM but in practice there is clearly no commitment from the top. In short, they do not buy into the concept. Progressively, this indifference trickles down to all departments. Some early signs of such indifference and lack of buying in includes the over scrutiny of any expense related to the TQM process or a mere lip service without any firm commitment to the process by the senior staff as well as the junior operatives. Another sign is lack of deliberate awareness campaigns resulting ◊
Definition supplied by this author
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in almost everyone in the organisation being aware of what is going on. No emotion, excitement, interest or even awareness is spontaneously generated. It is a matter of duty. Why should people lose sleep over something they are unaware of? In a place where TQM information is the private preserve of the select few, lethargy and sloth thrive the most because people have not seen the idea value. In such an environment, it is possible to have world-class internal control and processing systems and yet come to ruin, as people’s hearts are highly indifferent. Yet another deadly sign is when people fix their eyes more on the balance sheet and cash flow rather than the real issuecustomer satisfaction. This is a more enduring lifeline as opposed to the traditional cash centred organisation. The information age demands knowing as well as anticipating the customer tastes and trends and there by strategically positioning oneself long before hand. Sadly, many do not want to spend much money on what they perceive as a mere unnecessary cost centre. This mind set leads to multiple sudden midway project abandonment as the profit and loss picture begins to show reduced gains. But how do executives more vividly and specifically show that they are not committed? The following signs immediately come to the fore: 1. When actions speak louder than words, they do not “live the talk” but merely offer lip service to the initiatives without moving an inch to support or denounce the moves. 2. When behaviour does not demonstrate commitment. For any quality effort to succeed, it must be seen that the top executives believe, support and are committed to the cause of that effort. Commitment is an intellectual characteristic, a personal attribute that cannot be mandated or imposed from outside. It is something you believe in and demonstrate in your practices. The absence of this shows itself in the way the executives interact with customers by not caring or minding the actual needs of the said people. This manifests itself when the customer is not the moving cause of the continuous quality strides. Further more, it shows itself with the time spent with customers, the suppliers not considered as partners and the little time spent on the shop floor. In addition, the time spent attending quality-related education and training as well as permeating it to other organisational staff. 3. Lastly, when the executives seem to mind too much the amount of cash spent so that the initiatives are implemented as “by the way” or scarcely sustainably supported. Having high lighted the above, we briefly offer a number of ways management demonstrates its commitment. These include learning the 121
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quality related concepts and skills, embarking on a one-on-one coaching rather than a bossy commanding approach, regularly collectively reviewing the quality and customer satisfaction data as a team, establishing reasonable quality goals that challenge everyone to readily espouse the process, enthusiastically talking about TQM efforts with employees rather than keeping them in the dark and keeping information under “lock and key” limited to the top executive orbits only. All the above is achievable provided there is sincerity, candidness, varying the time and frequently talking with people on the work floor. Management By Walking Around (MBWA) is critical and to some extent more thorough than Management By Exception (MBE). The other trait is to implement home grown popular quality improvement projects that all the people will own rather than abstract ones. In addition, the efforts must be allocated sufficient resources that show the importance and centrality of TQM. Sadly, half the time, many organisations are reluctant to provide for sufficient budget allocations to ensure sustainability and continuity of the initiative. Lastly, the best measurement and monitoring parameters must be installed at the onset using the available state of the art technologies. These appropriate measures could include the financial, operational, employee and customer satisfaction. Incidentally, even employees are “customers” of the organisation needing satisfaction that ultimately motivates them. The second major reason for the dismal TQM performance in recent years is the poor timing and pacing of the TQM implementation (Rapid strategy obsolescence). Some companies, though well meaning, set sail upon the high quality seas with all the momentum and robustness that can be marshalled without counting the cost. They go to sea in a canoe instead of a Titanic ship equivalent and thus sink just off the coast. The start up stage has ruined not a few companies who have finally abandoned the entire project as a sheer waste of time, unworkable and unrealistic. On the other hand, others have not read the times as well as the pace of achieving goals against set benchmarks. Complete change takes time and sometimes may take many years to realise. As a known fact, change is often resisted and requires time, tact, patience, perseverance, craft, smartness and a clear mind to effect major paradigm shifts. The third reason for TQM failure is when organizations waste education and training, they do not tenaciously seize the opportunity, as it were. That aside, although the organisation may engage in staff training, the value, quality, 122
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effectiveness and usefulness of the same may be questioned as it does not translate into action, thus paying dividends. It is important to have a deliberate continuous training policy that ensures that people are constantly being trained to achieve maximum out put. We live in a dynamic world and as such, there is need to spend time sharpening our selves so that we can successfully forge the battles that lie ahead. Change is the only constant at whatever level, and so must our mindset be as well. Training and education may seem expensive but actually, TQM proves that a well-trained staff cadre are motivated, unleash hidden potential and ultimately pay back ten fold to the organisation. In the quest to achieve zero defects, training is paramount so that people acquire the right skills and acumen to effectively articulate issues. Some one has humorously quipped saying “If you think education is expensive, try ignorance”• The fourth reason is the lack of short term, bottom- line results where companies are told to expect instant tangible full scale results in a short term. Although TQM is long term in out look, yet the organisation must sow quality seeds expectantly. They should watch out for and record any small victories and successes. It is these small strides that compound to make the bigger picture over time. In as much as we should not be overly expectant, there is room for this so that the vision and momentum remain alive. Thus, the organisation must focus more on process, not results, as the organisations’ scarce resources are poured into the quality activities without demonstrating results. In a nutshell, the first phase illustrates the fact that people struggle to learn about TQM and its principles. Early efforts generally involve implementing quality improvement projects by using the tools and techniques of TQM. What then can be done to increase the probability of succeeding in implementing the TQM initiatives and sustaining them? What tools can be employed to help future success? Among the many ways to improve the success chances are the following: 1. Justify the costs and timing of the TQM initiatives. This may well mean taking time to compute and show the cost benefits of engaging in the project. All arguments must be summoned to show that TQM actually pays more dividends than what is invested into it, though it may be long
•
Anonymous
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term in nature. This should be done prior to undertaking upon the quality initiatives. 2. Continuous staff education and training must be taken as priority. People can only be motivated and learn to be proactive when they are properly educated. An ignorant work force is a sure recipe for disaster. Technology and practices are dynamic, hence the need to be enlightened and kept abreast with the dynamic times, if not ahead. Also, time must be taken to enlighten people that TQM is not just another passing craze but must be internalized to succeed. They must endeavour to integrate quality into their own thinking system rather than treat it as an abstract pilgrim management fad which is independent of the very core business. . 3. Implement the strategy while avoiding bureaucracy and red tape. When the people are properly trained, as in (2) above, and the strategy crafted, the organisation should ensure that the right people and time are at hand. This should be done within a framework that is flexible and avoid the old slothful ways that take many years to effect tangible change. 4. Using the right measurements. The right parameters must be put in place whether they are financial, operational, or other appropriate tools/scales. The right benchmarks must be set up and the key indicators securely in place. 5. Watching the appraisals. The traditional appraisals tend to discourage teamwork and continuous improvement as the appraiser may use the time as an opportunity to settle old scores. The new appraisals must aim at bringing about mutual help and encouragement for both the appraised and appraiser. This should be a time of retrospective self-review and a time of setting new goals rather than a time of axing each other. It should be a time of refreshing, charging the cells, as it were. 6. Watch the reward system. The reward system in place should be appropriate, equitable, realistic, relevant and encouraging to people. The system must be attainable and challenge the people to greater heights of productivity as well as foster the team work ethos. Both the executives and workers must be compensated appropriately so that they all feel valuable.
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7. Check the power structure, where does it lie exactly? Are your employees empowered? Do they feel that they are equally important stakeholders in these initiatives? Do they “own” the moves? If the power lies only in the top brass and not shared, by way of teamwork, very little will be achieved. Once teamwork is in place, the number of hierarchical levels will be cut tremendously, as people learn to overlap and complement one another. Some times, the actual power does not lie in the formal office but in opinion leaders. Half the time however, power is vested in a few people holding high offices. Also the structure which has multiple onion like layers causes bureaucracy to encroach and build thus reducing the organisational agility and flexibility. This detrimental status militates against total quality attainment quest. Empowerment of employees is crucial because as their competence is built, so also their liberty and usefulness. Said differently, there is need to check the power distance, minimize the layers and promote a community team spirit and environment. 8. Review the current management crop and beliefs to ensure they are relevant. Half the time in the past, there was the top-down kind of approach to management where the top brass were miniature territorial kings. In other words, the boss reigned supreme and passed all the corporate laws and decisions without consulting anyone. Decisionmaking was the private preserve of a select few. We have however arrived at a stage where the managers are facilitators, change agents, catalysts, mentors and coaches. From the “bossy” management approach of yester-years, we have shifted to the strategic leadership approach to management. Leaders are men or women who influence other people towards a vision by moving them to unleash the latent and hidden potential within them. By that token, Leaders are team players and trust others. 9. Test the systems in place whether they are in perfect shape. Are they sustainable? Do they leave any room for defects and errors to creep in? Do the systems promote or hinder further development? Are they appropriate and adequate? Every effort must be made to ensure that the extant systems are in such a way as to ensure minimal defects. Thus, quality must be built and integrated into the system so that when a product or service is churned out, there will be no need of a redoing of the same. In a nutshell, are the systems enabling or inhibiting operational efficiency? 125
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10. Ensure a continuous learning culture is imbibed in the organisation. Gone are the days when either some one specialised in only one thing or the time when once one studied a trade, they lived to use the same old knowledge throughout their careers. The “this is how we have always done it” syndrome is now obsolete. It is time to be open-minded, innovative and creative, expect change as well as take leap strides if possible. The organisation must constantly watch the persistent and constant changes in the environment and then respond appropriately whether proactively or retroactively. Kaizen is the Japanese buzzword for continuous learning and improvement. Agility and flexibility marks out a progressive TQM soaked organisation. 11. Encourage brain storming and best practices implementation. Many organisations, though claiming to be learning organisations, often fall into the reactionary trap of merely adopting new techniques as a survival strategy. But progressive organisations encourage and nurture brain storming, innovation, creativity, documenting and adopting best practices. The silver bullet often lies there. How ever, staff are often apprehensive about imbibing new ideas rapidly because the new strategy may just backfire into their job loss, as Peter F Drucker has highlighted in his book “Concept of the Corporation” of 1945. Staff need job security and then you see just how fruitful they become! They are also afraid to bring about new innovative ideas lest they stab themselves or others in the back-They fear blame or loss. Job security probably explains why the Japanese have succeeded from height to height, although the recent global blizzards also threaten life time employment there as well. Finally, as one peers into the TQM future, after all is said and done, it is envisioned that TQM will graduate from being a mere buzz word to being the main thing, having addressed all the tangible areas that affect the organisation. All indications show that the future will demand quality in all spheres. Thus far, the world has witnessed at least three revolutions, the agriculture, the industrial and the mega technology revolution. Could we safely assert that the quality revolution is yet another in the making? The 21st Century organisation will only soar to higher heights of competitive advantage only to the extent it flies on the swift and golden TQM wings. We trust that by now that we have sufficiently whetted your appetite to go to the TQM source itself and mine the sweet truths for yourself. We encourage 126
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you to spare no efforts in your quest to find, read and lay your hands on the classic TQM resources as they could make the difference between your fortune or doom.
Bibliography Beatty Jack, THE WORLD ACCORDING TO DRUCKER: The life and work of the world’s greatest management thinker, Magna Publishing co. Ltd, 1998 Henderson Gordon, “Quality is the key”, Banking World, October 1990 Kaswende Kingsley, “Bureaucracy complicates business process-Swart”, The Post, September 29, 2005 Mark Brown, Hitchchock & Wilard,Why TQM fails and what to do about it, Irwin, Inc., Burr Ridge, IL, 1994 Norton Bob, Testing for excellence in one week, Hodder & Stoughton, 2000 Oakland John S. & Porter Leslie, cases in Total quality management, Butterworth Heinemann, 1994 Oakland S. John, TQM: Text with Cases, Butterworth Heinemann, 2003 Vroman William .H & Vincent Luchsinger, Managing organisation quality, Irwin, Inc., Burr Ridge, IL 1994.
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Chapter Eight
Nchanga open pit mine, Zambian Copper belt “Strategy has to do with the life and death of firms” Bower et al ⇔ Strategy, its necessity The necessity of strategy cannot be over emphasized in the light of the rapid changes in the world from about the commencement of the industrial revolution in the 1700s. Today, we are talking about a global economy & brand, in a constantly changing, uncertain and turbulent business environment. The advent of Information Technology (IT) as well as other cutting edge technologies has added yet another sharp dimension in that many things that were once manually done, slow and after much ado are now done at the click of the button. Information is now more potent rather than mere wealth or financial muscle. Consider Africa for instance, with its vast mineral deposits, valuable factors of production and raw materials yet it lies paralysed in poverty’s entangling web. What could be the root cause for all this misery amidst plenty? It beats logic to imagine that any country could remain in squalor even when technology has made information transmission across the world possible ⇔
Bower, Bartlett, Uytherhoeven and Walton, Business Policy pp 92
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within seconds leading to quicker decision-making implying a quicker work pace. Technology’s plausible off shoots are widely in use across Africa and yet little or no progress is recorded. One is at a loss to point out what the problem is when the cell phone, TV, computers and a host of other state of the art technologies abound on the continent. If Africa does not catch up at this stage, then when will it as things are changing all the time? Time eludes us to talk about the video conferencing, time & space travel, super computers (which become obsolete every 18 months at the most) and also the potential brain chip that will keep information and relay it once engrafted into the skull connecting the brain. Genetic engineering is yet another marvel though it has its attendant ethical problems presently. As can be seen if one is to survive in such an environment, they have to correctly read the times, anticipate changes and reposition them selves at the right place all the time. Consider cloning for instance, although still a thorny ethical issue, the strategic entity should perceive the implications from afar if this were legalised and begin charting possible competitive routes now. The African or indeed any organisation will have to contend with all these and much more if it delays. Suffice it to say that the winning team is one that is well coordinated and ready for any eventuality. The strategic organisation that surmounts all hurdles in the above painted scenario must be an agile, consistent, lean, continuously learning, regular environmental reader, adaptable and consistently responsive. This entails the teams cohesively play the winning game as often as possible to the extent that they instinctively know each others’ abilities, strengths and weaknesses long before the competitive match begins. The coach should strategically place people in the right spots poised to score. Further more, the organisation must at all times have a well motivated staff cadre (internal customers) who are equipped, activated and challenged, that will in turn market the organisation where ever they go. Having said the above, we re-echo that strategic thinking is not only good but essential to the well being and survival of any entity. What is it that has made corporations like Microsoft the near monopolies they are? At any one given time, the organisation is many years ahead of its closest rivals and consistently churns out new products in record time. The shared vision is feverishly pursued until the work is done. But even after the triumph, some research work still continues into new product areas. In addition, Microsoft has the strong social responsibility ethic where it pays back to the community what it gets and hence has a relatively good reputation despite
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the relentless antitrust legal arsenals that buffet it from the restless competitors. A recent case study showed something of the litigation battles Microsoft has had to and will continue to wage. Look at the case study from the Economist Magazine down loaded from the Internet some time ago. One person has been at the helm of all this success, no other than the venerable Bill Gates. This leader works relentlessly despite billions of US $ pouring into his account every second. He is a strategic leader whose highly contagious enthusiasm works wonders. The write up shows some thing of the man.
Bill Gates & Microsoft He suddenly appeared on the computer horizon and has been there ever since. His name is Bill Gates, probably the richest and most influential man on this terrestrial ball. At 14 he had a company and by age 35, was the Chief Executive Officer and Chairman of the Goliath Microsoft Company, except this time, this modern Goliath is apparently invincible on the computer Market for now. Gates has sustained a powerful intense love for computers from his youth days and has continued to improve his mastery in computer software programmes and this has surely rubbed on to the company teams. But from whence has Microsoft hailed and what has made it so powerful? What has been the “silver bullet” and who have been the major key players? For one thing, it is very clear that Bill has been at the helm of the Microsoft success. He, along with Paul Allen, a childhood friend started the small and little known company in 1975, having had a short stint with MITS in New Mexico then proceeding to open up Microsoft. The early days were rather rough because Microsoft was unknown in the computer forest where giants like IBM reigned supreme. Armed with only three workers, knowledge and determination, the company commenced business in New Mexico, later moving to Bellevue, Washington. Slowly but surely, Microsoft found its feet in the relatively new computer industry. Market positioning is a crucial stage. Knowing that for Microsoft to be noticed, there was need to be aligned to some big name, hence the choice to develop software programs for IMB was hardly surprising, this being an excellent strategy. Having noticed that many were more involved in hardware, Bill and Allen figured that the Software would be the need of the future, what insight they had! As
Check Microsoft case study in Appendix 2 drawn from the internet
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such, they plunged headlong and developed many successful software programs such as BASIC and COBOL. These programs were so excellent that Microsoft begun to licence out their products to the computer giants of the day. The said software programs were IBM compatible. In the fullness of time, Microsoft exploded proving too big and independent. Thus, this entity has sailed to higher heights ever since. But what has been the secret behind Microsoft, when a myriad companies in the same industry have folded up? How has it managed to defy all company demise, but to the contrary, managed to blossom further? A number of reasons can be advanced when we analyse its progress against the competitive background from which it was hewn. Firstly, Microsoft etched out a powerfully unique niche. Its software products had such unique features which rivals failed to copy, components like the operational and application packages. Secondly, Microsoft has always been customer focused, in most cases reading the “writing on the wall” as well as anticipating what features the customer would probably like in future. To that end, the customer has been the one to determine the end products. In addition, there has been speedy attention to the customer needs and orders. Thirdly, there has been continuous improvement on the programs ever so often, so much that the programs are improving every year. Microsoft has always had a special place for programmers and developers, no wonder the phrase “reverence for the Programmer” is strongly upheld. Not only is there a special place for the programmer, Bill Gates has created an intensely exciting atmosphere in the company as there is commitment to graphics user interface and an efficient development process. This has been the backbone of Microsoft. Further more, the company has had aggressively strategic marketing ventures and teamwork has been the corporate culture from the beginning. The Gates leadership has cultivated an informal but highly charged atmosphere where people do their job excitedly, many times working late. It has been fun to work at Microsoft, not so much the pay but the goals. A consistently watchful strategic out look has made Microsoft the trendsetter in the industry. As can be seen, Microsoft’s success cannot be solely traced to setting the standard for PC operating systems but rather its strength lies in the integration of programs so that one can work in more than one program at the same time. In the past, these programs were independent and could not be integrated, but now this hurdle has been overcome with the advent of windows. Further more, through the dynamic and strategic leadership of Bill Gates whose insight into computers, zeal and determination to succeed has wrought success for Microsoft. The hiring and nurturing of the best college graduates and professionals is another way 131
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Microsoft has stood out from the rest. These graduates are sharpened and contribute brilliant ideas to the product development. Also, Gates has been careful to hire only the right people with the appropriate acumen, expertise, experience and must be “ Known quantities” equal to the task. The products, by that token have been of continuously improving quality, much to the pleasure of customers. As Microsoft has been becoming more complex, a deliberate effort has been made to maintain a “small company” culture so that the personal touch is not lost with time. Contact with customers is vital. Whereas in the past, Microsoft only concentrated on churning out high quality impeccable programs, it has also gone further to cater for consultancy and customer service. This has been another plus. All the above has been achieved by the fiery zeal and determination of basically two men, Bill Gates and Paul Allen. These men, as earlier intimated, worked closely together until Allen was taken ill in 1983. Gates continued to herald the Microsoft torch which has shone brighter over the years. Bill, possesses a peculiar simplicity about him that one cannot fail to notice. He is self-assured, creative, energetic and intense. The CEO also has a clear mind, insight into multiple issues and very daring too. When he is about a task, he works feverishly and relentlessly until the mission is accomplished. Software innovation is not for the fainthearted. Determination, diligence and hard work marks him out from other Chief executives. As one would expect, such a high profiled man is very passionate and demanding until results are produced, most of the products being time bound to keep a head start. The irony of it all is that this zest is contagious because Bill gives as much individual attention as possible on email and other wise. He works closely with the developers and keenly reviews everything they do. Together, they have been able to develop such classic programs as MS-DOS, Word, Excel, Fortran, and PowerPoint. Apart from these programs, other developments have been in the operating systems and applications software, headed by Steve Ballman and Mike Maples respectively. This team has fought computer “wild beasts” and triumphed! Furthermore, Bill has continued to champion the development of other multimedia software programs. This man in particular has been highly inspirational and sensational, ideas never cease to flow out of that mind! Now that Microsoft is unquestionably the most powerful organisation in the computer software industry, many problems have begun to buffet it, which the Gates administration have and will wrestle with. That Microsoft is and will be the foremost software giant in the 21st Century is beyond doubt, but to maintain that leadership is quite another hustle. For one thing, there is a general feeling that the organisation is fast losing the “small company” 132
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culture due to its complex nature. Although vigorous efforts have been made to resist this decay, change is inevitable, unless the company is fragmented into smaller units. The said complexity means that the company by bits loses the fluidity, agility and the “family-ness” of the entire organisation. Time was when Bill knew every one by name but with a nearly 14,000 workers world wide, it is practically impossible to know every one. Closely akin to the afore mentioned is the slow but sure increase of people who do not really identify with the initial passion, intensity, sacrifice, team work, high quality output and the continuous improvement goals that engulfed the forerunners to the present Microsoft. Today, it is feared, many join Microsoft with the self-gain motive rather than the love for the job as well as longing to see new products churned out, far ahead of any competitor. Continued growth and complexity has meant that the single Redmond campus has proved inadequate. There is need to expand and probably explore other sites although this will lead to a further “unity” disintegration in the sense that the pace of development will not be uniform. Saliently, more professionals have had to be hired as well as train staff within. This is no mean task at all. Furthermore, the popularity of Microsoft programs has far outstripped the ability to satisfy the demand. Today, it is unthinkable to imagine a computer without the Microsoft programs, as the integrated operating and application programs are literary on every computer! This has led to a situation where even the newly introduced consulting and customer user services are far not equal to the demand. All these are business opportunities lost. If I were asked to advise Bill Gates on what to do to remain buoyant, I would suggest the following: 1. It is good that Gates has acknowledged that Microsoft is no longer the same as in those formative years. It is far more complex and naturally the centre of attraction World over. Thanks to his accurate foresight, Bill acted prudently long before hand in appointing Shirley and then Michael Hallman as COO. But Gates should do this more often as need arises long before slothfulness creeps in and solidifies. 2. Bill should continue to be strategic in approach while Hallman focuses on operations, ensuring corporate agility. 3. There is need to sharpen the customer sensitivity needs and to be as personal as possible. 4. Innovations and niches must continuously be explored. This means that Microsoft must not rest on its laurels but strive to be the trendsetter, where rivals find it difficult to copy. They must have a satellite approach where information is shared freely and quickly sent across the entire organisation. 133
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5. Quality must run in all spheres of the organisation and products. The service must be speedy, timely, personal and customer satisfying. The products also must be excellent, always adding new features. 6. Every person joining the corporation must be a team player and have a similar passion for high quality and continuous product innovation. These traits must not be trifled with nor treated lightly. 7. In an extreme case, where Microsoft becomes too big to be governable, it must be split into small units. This is a very sensitive line to tow though. 8. Training of staff must be stepped up more vigorously than hitherto, so that they are inculcated into the company culture. Initial comprehensive orientation is key. 9. Effective communication is a must, more than ever before. Management by exception is becoming a must but this should not compromise detail and meticulousness. 10. The right information must be on hand all the time. As we know, one can have all the money but without information, all efforts are endangered because of the rapidly changing environment. Time and opportunity can only be redeemed when the correct information is at hand. This information is very crucial for strategic decision making. Also, everyone in the organisation must know what is going on at any time and no one relegated to the “information vacuum”. This tends to make people feel left out and as such, they will not put in their best due to lack of the same goal empathy. 11. Aggressive and constantly refined marketing strategies must be put in place. 12. Diversification is a welcome option where possible, but ensures that the core values of the company are preserved and enhanced. More computer accessories can be developed as well as an expansion of the present consultancy and customer services. 13. Give incentives to those who bring in excellent product innovations that are viable. 14. Continue to hire “Known quantities” that have the same corporate goals as Microsoft. Having qualifications is one thing but being a team player is quite another issue. 15. Watch the market meticulously, and “benchmark” backward to ensure that the nearest rival does not get too close. Further, watch out for those unknown entities that might come up and undercut Microsoft. Recall that Microsoft itself was once a start up feeble company compared to the giants like IBM. The picture is entirely altered today because the “Big brother” despised and ignored the once “non entities” like Microsoft. Due 134
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to its size and power, it felt secure. Frequent market research and “market reading” are crucial, remembering that rivals are always prowling around looking for an opportunity to seize. 16. Watch out for bureaucracy that has crippled many powerful organisations. This “vice” tends to slow down the development pace and corporate agility. The company structure must be kept as “flat” as possible, meaning that although a defined and organised structure should be in place, the layers must be kept at a minimum. 17. Keep information as secure as possible. Developmental secrets must not be leaked to anyone or else rivals will pick them and outdo Microsoft. This means information must be classified and accessibility restricted to a few. This must be clearly explained to all employees that the issue at hand is strategic rather than mistrust but a strategic move. As Microsoft hurtles into the 21st century, and observing the above points, we are not afraid of the results. Let those who try to compete with Microsoft do as they please, we have the powerfully innovative and strategic Bill Gates team, and as such, we can safely rest our case! Questions still linger whether this titanic company will continue to hold the computer world at ransom and for how long. In Zambia, most of the companies are in their infancy but a company like the Guardian Motors remains by far one of the most powerful and advanced organisations with practically no cash flow hiccups having refined its strategies over many years. Enterprise goes with innovative strategic thinking. Beyond question, Strategy is essential and cannot be relegated solely to the management terraces. Although some people like Gary Hamel in his article “New wealth”⊥ seem to suggest that classical strategy methods are obsolete and not the once heralded universal panacea after all, strategy is nonetheless a vital component in ensuring corporate success. Below are some of the reasons for its necessity:
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Executive Excellence, April 1999. In other words, strategy is non negotiable. Where it seems to have failed, perhaps what is needed is to refine the processes, be abit more aggressive, find out where the customers are and even revise the methods relating to strategic formulation, identification and implementation. In addition, the organization must get closer to the customer so as to be a customer driven entity. Want of these attributes in many teams has led to mass organizational funeral processions to the corporate bone yard.
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Firstly, strategy is used to identify the organisation’s core competencies. The enterprise that goes about doing everything ends up with nothing because it is impossible to do all things in equally the same fashion and potency. Even in real life, we can do only so much beyond which we leave it to the experts or outsource as the case may be. Thus, strategy helps the organisation take an objective introspective scan to crystallize its potencies and then zero in on its best strength. Once these are identified, the entity then priotizes what it wants to achieve contingent on the over arching corporate goal. We can thus safely assert that strategy helps us get to the desired haven in the most cost effective and efficient manner. Without strategy, each entity beats about the bush unawares! Applied to the Zambian scenario, the nation has every thing that any nation would wish for but constantly aimlessly beats the air. Zambia is a mere bag of wind, full of potential but inert. On the other hand, Japan, which hardly has any serious resources such as raw materials or minerals and imports nearly every thing leads the world in a number of spheres including the motor car industry. The earlier one realises their killer punch and maximise on it, the better. Kalusha Bwalya discovered his deadly left foot long before anyone else did, no wonder he went on to become a world class soccer legend. In the second place, strategy enables the organisation continuously reinvent itself. Organisations that have identified their peculiar strengths know when to make the right move, yea, when to mutate, reorganise, re-engineer, diversify or indeed pull out of a certain business line. The post-modern organisation operates like the human body that constantly reads the outside environment and responds appropriately. Many an entity dies at the rigidity and bureaucratic alter. They leave every thing to blind fate and by reaction time, it is often too late because other entities will have assumed the centre stage. Examples include the Dell computers, Ford, Chrysler and General Motors (GM), Freshpikt, Zamtel, Zampost, Zambia State Insurance which were once leading companies in their respective industries but are now struggling to keep up with the hostile and ferocious competition. They waited far too long before mutating. They are now forced to react rather than set the trend for them to survive. Others are now miles ahead. The following write up shows a titanic company attempting to regenerate itself:
Corporate Regeneration
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A few years ago, General Motors was by far the most powerful, influential and successful organisation in the Motor industry. By all standards, no other company could compare its market dominance, size or financial muscle! By that token, General Motors (GM) bathed in its glory for generations. It is now well over ninety years old, which record is rare to have in these turbulent and competitive times. To be around for such a long time is one thing but to maintain market leadership is quite another experience. Many companies have shot up like meteorites and disappeared as fast as they came. This has not been the case with GM because it was the champion for many decades. How ever, GM has not had it easy lately. It had a crisis in 1992 when it recorded a net loss of $ 5 billion! Stuck at cross roads and any decision made was definitely going to affect the future of the company, the organization had to salvage itself. But what led to this crisis? Why is GM transforming today? The April 1999 Executive Excellence magazine gives useful hints as to where GM went wrong and what it is doing today to rectify the past pitfalls. The following, among many, are some of the reasons why GM nearly collapsed without realising: i.
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GM grew too big and powerful as a multinational organisation after the Second World War. This led to Complacency, stubbornness and arrogance. The company was highly focused on the financial figures, variances, and profits not quality. The Profit and loss as well as the Balance sheet is what mattered most. The products it made were not as customers wanted them but what GM deemed fit as “What customers were going to want to buy” There was no prior consultation with or choice for the buyer. The Management style was probably another reason. Since GM was huge, there was a lot of bureaucracy before any suggestion could be dealt with. Closely connected to this was red tape. The quality of the products was assumed to be of high standard that customers would like, not knowing that the Japanese were rising slowly from the atomic ashes through the legendary lectures of Deming and Juran. The company did not focus on its core competencies but because of its size, GM took on many other businesses, which were not competitive in the long run. They became cost rather than profit centres.
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All the above led to the crisis of 1992 because the environment had drastically changed over the years while GM remained static like a monument. As earlier intimated, the Japanese entered the Motor Market with superior quality products which ultimately under cut GM`s market dominance. By 1991, the Japanese had triumphed already! Thus, a critical decision was made to restructure the mammoth Company by carrying out radical changes. Among the major changes implemented was the down sizing of the central workforce from 13,000 in 1992 to about 1,000 in 1999. Further changes included the following: i. Adopting the best practices through out the system. Only the best methods of doing things were adopted. This meant comparing how certain processes were done within the international GM network and absorbing the best way to do some thing. For example, a number of ways how to fit an indicator on a car is tried until the best method is found, having zero defects. ii. Be proactive. The company had to be agile and flexible, while anticipating customer taste changes. It was to learn to detect trends from afar rather than react. iii. Meet customer needs. GM had to change to being customer driven. Unlike in the past, what the customer wants is what carries the day. No longer would GM determine for the customer. As such there was need to be constantly be in touch with the customer from the earliest product development stages to the end. iv. Reduce the product introduction cycle time. Previously, it took many years to release a new car on the market, but a deliberate move was made to shorten the period to months and in some cases, weeks! We are told that GM plans to introduce a new car every 28 days on average! Now that is a feat but a necessity. This is to be achieved by having strong teams that will brain storm and come up with new models. Computer simulation models via Computer Aided Design (CAD) came in handy. v. Do away with the businesses that are not directly linked to the core competencies. These may be profitable but if they are not competitive, they are to be spun off from GM so that they can fly away to success on their own. This has been the case with Delphionce part of GM. vi. Imbibe teamwork and continuous improvement. GM had to improve in quality and also never again rest on its laurels! This is the
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only way forward as time for individualistic tendencies in the business is long gone. GM would instead operate like an organism, yea like the human body. Include customers in the planning stage. These are both the internal (employees) and the external. If these are included at planning stage, success is almost guaranteed because they will produce and buy what was agreed upon at acceptable, if not superior quality.
GM went full throttle and implemented the survival strategies. Since the company is big and complex, it has not been easy to steer it back to leadership in the industry but the said company has scored many successes, some of them unprecedented. The sales have gone up while the market loss rate has reduced. The profits have shot up once again. From a net loss of $ 5 billion in 1992, to a net profit of $ 2.3 billion in 1997, is unprecedented. In just five years, the titanic company is being steered to safety and is definitely going to avoid the iceberg! As earlier intimated, GM is in top drive to recovery though a few impediments still linger in the way. The President, John F Smith, is optimistic that his organization will surmount all the hurdles because signs of new life are clear for all to see. For example, the company will introduce 23 new cars and Trucks within three years. Now, this is speed indeed! Among the major concerns is the fact that GM is still the High cost vehicle producer in North America. In this environmentally conscious age, pollution matters are unavoidable. A pollution free motor vehicle is a big plus and as such, GM is vigorously exploring new options in that direction. That not with standing, the important thing is that GM is on the right track having thrown away the relics of the past that made it rest on its laurels. It is gratifying to note that GM is determined to have agility and speed as its hallmarks. In all these efforts, TQM lies at the heart or else the giant will tumble and die! The market leader of the 21st century must take heed of GM`s mistakes and sail to safety while the `Market dominance day` is yet young. On the Zambian home front, hundreds of uncompetitive companies folded up at the turn of the economy in 1992. Strategically progressive companies saw opportunity after opportunity in the same turbulent times. Religious organisations also need to repeatedly reinvent themselves whilst maintaining the basic and fundamental tenets of the gospel lest they turn into salt pillars akin to Lot’s wife (Genesis 19:26). 139
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Thirdly, strategy helps the organisation count its “foot soldiers” to respond appropriately. Strategy has a way of forcing organisations and individuals to realistically and objectively examine themselves. They are brutally honest with themselves and as such know their limiting factors, what to do and when. In addition, strategy enables an organisation to stop in its tracks, perform a retrospective and introspective scan, put the meagre resources in the right place and move at an ideal pace. Failure to do this often results in corporate obesity, over trading or serious inefficiencies that translate into high overheads as well as serious losses. In as much as we should ambitiously attempt great things, it is none the less prudent to know your strengths and weaknesses. In that way, you know what to do in case of any eventuality. Know where to look at a glace to get the current big picture. Fourthly and closely connected to the previous point, strategy enables any organisations avoid all extremes that slow it down in the highly competitive global economy. Red tape, bureaucracy or loss of focus will be a thing of the past once an organisation develops a well-trained strategic eye. Admittedly, strategy is a means to an end, not the end in itself, but it none the less does help chart the direction in the most efficient and cost effective manner. Coupled with the best strategic ideas, there must be a will to pragmatically get things done other wise all is a waste of thinking time. Due to this weak strategic eye, many parastatal companies grew obese and eventually had a bloated workforce giving a false impression of a low national unemployment rate. Actually, most companies became liabilities rather than assets to the government surviving on subsidies as such failed to profitably sustain themselves after the stream ran dry in the early nineties. It still remains a (good though!) paradox though that the ZANACO has remained consistently highly profitable despite all the changes, perhaps because the government deposited all its cash there. It therefore puzzles every right thinking person why the new dealers flogged (sold) the Bank at the end of 2006. For another reason, strategy helps anticipate trends, for early and correct positioning. In a dynamic world, change is inevitable and cannot be precisely predicted for sure but one thing is sure, change is the norm. Thus, strategy enables, to a great degree, a firm to read the writing on the wall and proactively re-position itself. The organisation develops unique abilities to factor in allowances for change so that they quickly and timeously mutate with the times. As earlier intimated, bigots rarely make a mark on their 140
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generation and are soon forgotten as soon as they leave the centre stage. Not so the strategic, they remain fresh and relevant for many years on. Religious organisations and other societies must especially take heed to this point. Other businesses such as Post offices, Cinemas etc need to read the times, tastes and preferences of people and prudently proactively position themselves. It warmed this writer’s heart to note how the once crippled Zam Post begin to network, link up and diversify its product offering in the light of the PTC demise in the nineteen nineties. As yet, most Zambians still use the regular Post box and for a season will continue unlike in the western world where people have mutated to largely using the internet. For the Zam Post, it is time to prepare for the “rainy day” ahead. Another interesting contrast is the lamia (Land line) versus the cell phone. The large fixed landline telephone booth looks really archaic against the flashy cell phone forcing the former out of business, at least in the developed world…. In the sixth place, strategy assists in major decision making relating to the future, product life, diversification, training needs etc. As mentioned in the previous point, strategy powers an organisation to make firm decisions timorously and then hurtle along to implement while the window of opportunity still lingers. Many wait too long and thus make the right decisions at the wrong time. More than making present decisions, strategic entities always have an eye to the future. Akin to an eagle’s eye, the organisation has the bigger picture in view, peers into the future and curves the right steps towards that strategic future. A strategy dearth leads to serious blunders that cost millions of dollars and in some extreme cases company mortality. Right strategy gives indicators when to make a move, mutate, apply emergent remedial shifts, diversify, disinvest, invest, outsource or enter strategic alliances. The said organic strategy has inbuilt mechanisms that enable it to benchmark itself. We must be quick to say that once properly understood, a good strategy fosters a shared vision, goal and values in people that remain on board. In addition, in times of difficulties, a shared vision, mission and value bound together by a strategy helps the organisation to persevere, reinvent itself and stick around. The absence of a strategy indicates a serious leadership vacuum and no direction as has been the case in many developing countries. To a large extent, Zambia has suffered for want of a potent strategy due to …
Refer to “Old pay phones become novelty items” story that appeared in The Post of 30th March 2004 pp20. The story attests to our assertions and declares “In the US, pay phones have lost so much market share to cell phones, its no longer a money making business”
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the now chronic leadership dearth that has plagued the nation. It has been in “auto pilot” as it were! We are yet to elect the correct strategic leadership to steer the country to the Promised Land. The author was intrigued to hear a Zambian Economics PhD casually remark that Zambia had amazingly been on “auto pilot” for many years and risked breaking apart due to persistent mediocre leadership choices the country has had to bear with. He terribly lamented and I believe he was not alone. Lastly, the right strategy helps identify the opportunities for potential market share expansion. As the strategy is crafted, it takes into account the situation before, during and the potential after effects obtaining in the environment in which the organisation’s lot is found. The well-orbed strategy sharpens the focus on the right things, sensitizes the opportunity sense antennae as well as broadens the mind to think within, without and beyond the box. Thus, we have demonstrated that strategy is beyond doubt indeed necessary for progress’ sake. Remove it at your own peril and do not be surprised if you continuously circle the same frustrating hill for generations on end. It is time to move on to higher ground having lingered here. In our next chapter, we consider a crucial element of strategic leadership as relates to strategy, hang in there! ====================================================== Bibliography Bower L. Joseph, Bartlett A. Christopher, Uyterhoeven E. R Hugo, Walton E. Richard, BUSINESS POLICY: Managing Strategic processes, 8th edition, 1995 Irwin McGraw-Hill, Boston, Massachusetts, Burr Ridge, Illinois Duburque, Iowa Madison, Wisconsin New York, New York San Francisco, California St Louis, Missouri Hill W. L Charles & Jones R. Gareth, STRATEGIC MANAGEMENT THEORY: An integrated approach, Houghton Mifflin, 5th edition, 2001 Hill W. L. Charles, INTERNATIONAL BUSINESS: Competing in the Global Market place, Irwin McGraw-Hill, 4th edition, 2003, Boston Burr Ridge, Il Dubuque, IA Madison, WI New York San Francisco St Louis Bangkok Bagota Caracas Kuala Lumpur Lisbon London Madrid Mexico
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City Milan Montreal New Delhi Santiago Seoul Singapore Sydney Taipei Toronto Peter J. Paul & Certo C. Samuel, Strategic Management process, Austen Press/Irwin, 3rd edition, Chicago, Bogota, Boston, Buenos Aires, Caracas, London, Madrid, Mexico city, Sydney, Toronto Peters J. Thomas & Waterman H. Robert Jr, IN SEARCH OF EXCELLENCE: Lessons from America’s best run companies, Warner books, 1982, Strickland III A. J & Thompson A. Arthur Jr, STRATEGIC MANAGEMENT: Concepts and cases, 7th edition, 1993, Irwin, Burr Ridge, Illinois Boston, Massachusetts Sydney, Australia Thompson L. John, STRATEGIC MANAGEMENT: Awareness and change, Chapman and Hall, London, 1990, New York, Tokyo, Melbourne, Madras
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Chapter Nine
Executive Excellence
“Like an Eagle, the astute strategist identifies potentials and foresees opportunities but the leader swiftly turns them to reality” BS The Manager as a strategist For any entity to succeed, regardless of its size, shape or location, to a large extent, the critical component is right leadership, yea, strategic leadership. This breed of strategic leaders is extremely rare and far between but must be found at all costs. It is not enough to have the right academic qualifications or status. It is not enough to have a huge financial muscle either but what counts is the strategic instinct and meticulous eagle’s eye that proactively sees opportunities, dangers and challenges from afar. The eagle flies in the higher orbs of the sky and is able to get a broader bird’s eye view over a wider given area while keeping a special eye towards its target. As it glides in the sky, it is able to make intelligent calculations, estimations and decisions based on what it sees in relation to all the parameters surrounding its target. Further, as it zeros in on the object, the eagle is single minded and yet remains alert to any eventuality that might occur in its descent flight. In case Murphy’s LawΕ rears its ugly head, the eagle swiftly and drastically changes course and climbs up to the skies for another try or change of plan. In a similar fashion, the strategic manager is one that has what it takes. Akin to the eagle, s/he has the whole picture in view, considers all parameters and heads for the bulls’ eye. In other words, the strategic manager does not rest in the generals but sets the target and then assembles the details on how to reach the intended goal. Put differently, the strategist does not only have the knowledge but the ability to turn ideas into reality. Strategic leaders generally are dreamers who while realistically bearing in mind all factors, Ε
This law has been coined to denote unexpected sudden occurrence of something to disturb the smooth operations of a plan. This phrase has been used in the aviation industry.
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forge ahead to turn their hope to reality. They draw tangibles out of the intangible. Further, they think way out of the box in any given situation. The said person does not only rely on age old formulas or procedures to get the job done but constantly scans for newer, better and cheaper ways to get things done. While others are using blunt axes, the strategist sharpens his for five hours and cuts the tree within the next hour. The ideal manager is a continuous thinker who goes beyond the analysis paralysis casket. In addition, the post-modern strategist is consistently learning and reaps valuable lessons from the past for future application. The past acts as a learning point as well as a planning base to turbo the entity into the proactive mode. For instance, we have heard of certain Managers who seem to possess an unusual ability to handle pressure and still come out at the top of the list. The author once worked with a leader who was in the habit of doing different things while other managers were engrossed in the annual program budgeting process. The friends would have a clear head start by about two weeks but as the dead line drew closer, that manager would galvanise all his resources, do the job and beat the deadline far ahead of all others! This used to stun a lot of people including this author. What was the secret? The answer is given in part by Stephen Covey in his monumental book “The seven habits of highly effective people”. Covey advances the idea that the quickest way to cut a tree is to spend five hours sharpening the axe and then felling the log without much ado in the sixth hour. Those that do not bother to sharpen the axe spend the entire six hours sweating it out and not probably do a good job. We learn that before undertaking any task, it is prudent to spend much time in preparing and planning so that at one swipe, the mighty tree tumbles to the ground. Strategic Managers are always proactive in outlook, smart and extremely hard working. The strategic leader is never a solo operator but builds strategic alliances with many other stake holders such as local team members, information hubs including the internet, friends and all people s/he wants to serve. Bigoted and self-centred Managers rarely go far or achieve much. There are exceptional cases though but it is almost certain that after the person has been ejected by either death or job loss, there is no continuity because no operating framework and enabling environment bequeathed. The author has met certain highly successful but egocentric business people who at their death owned half the town’s assets but as soon as the last shovel was put on their grave, their legacy business empire instantly crumbled. The family members turned against each other and literary tore down the empire. All reason is suspended for a season as the family runs amok as though some 145
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strange extraterrestrial virus has infected them. Succession planning horrifies the average mortal for some reason. Perhaps this could uniquely be an African problem, but suffice it to say that continuity eludes many a private business. The strategic manager sees danger from afar and prepares well in advance so that the up coming tremor is sufficiently mitigated. Further, the powerful network of friends and associates ensures that the leader gets things done in record time without much ado. Perhaps it is fitting at this stage to turn to a detailed analysis of the marks of the ideal strategic leader as given in part by some head hunters in a book years ago. Admittedly, due to the high dynamic nature of the global world, some of these requirements have drastically altered, hence the continuous expansion of requirements: Strategic leadership traits “To understand the heart and mind of a person, look not at what he has already achieved, but at what he aspires to” Kahlil Gibran A survey once asked executive recruiters to list the characteristics they looked for in a top prospect. Because many of their answers were similar, the profile of the executive recruit caught the head hunters’ attention. Some of the key characteristics of today’s executive include: 1. Strong leadership skills The person must be more than a mere manager who revolves in his/her own impeccable orbit but rather one who has the clout to inspire confidence and carry along people in what s/he sees. In other words, operatives must trust and rely in their head to lead them to the desired haven. Further more, the leader should have unique abilities not only to inspire admiration, trust and direction, but s/he must be one who builds other leaders. S/he is both magnetic and irresistibly draws a crowd around them. In the words of John Maxwell, “who you are, is who you attract”. Scanning the Zambian Management and leadership landscape, we encounter a whole bone yard full of epitaphs pointing to autocratic bosses and rarely any leaders. As one traverses these tombs, the epitaphs belonging to true leaders are scarce and far between. Perhaps we are yet to see a new generation of strong leadership in the millennium years ahead. Thus, we can safely say on this point that it is not enough to have money, intellect, status, position to be an achiever, you need to have extra ingredient called leadership for you to turn a vision into reality. Leaders visualise and 146
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go further to actualise. Leadership is the drive towards success and constitutes of a. Intuition-Know when to make a move. There is need for discernment, knowing when the cloud has moved or not (Numbers 9) b. Momentum/drive/vehemence c. Vision d. Passion e. Integrity f. Fidelity g. Resolution h. Determination i. Diligence Scan the Zambian business horizon, how many are leaders? As earlier intimated, I fear most are bosses rather than leaders. It is not the well managed but led organisations that ultimately triumph in the turbulent market place.
When I was in College, we formed an informal strategic alliance of four young men. We shared goals, dreams and interests. That was the glue that stuck us together. Ironically, even then, I could see that we had different leanings and abilities. There was something that each person had that the rest did not. Of all of us, Christopher (CK) exhibited leadership prowess long before he realised. He had a way of turning the seemingly impossible to reality in a flash. For instance, once when we all had given up on flying in a preacher from abroad for our annual youth camp in 1996, CK made amazing connections and Tim Trumper, the preacher travelled, preached and returned to Germany at absolutely no cost to the Church! The Elders were stunned, and so were Chris’ peers. He had what it takes in that he saw something and hurled himself towards it, hitting the bull’s eye.
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CK
The camp was the biggest on record with 345 kids and only 12 leaders. Yet Twandi, the camp chief then ensured the camp successfully took place incident free. Today, CK is CEO of a small but budding organisation with global connections called the CK scientific group. The man flies the world in his own unique orbit, though barely 33 years old (2005). The rest of us have picked on other trades befitting our strengths. I am an operations guy in a high profile NGO but still hoping to manage a company some day. Twandi is a lecturer, commands respect and attempts small businesses. Peter Mulenga is a middle management bank executive, pursing legal studies. In a few words: 1. CK is a strategic leader, eloquent speaker and thinker. 2. Twandi is an astute manager, teacher, coach and wise. 3. I am an academician, preacher and operations person. 4. Peter is a corporate manager and a great legal mind. Legacy tests leadership quality. The acid test for one’s leadership is what they bequeath after they have worked their way out of or have left the previous position. Many people brag about having been extremely successful in achieving things but upon evaluating their legacy, it is apparent that their work did not live beyond them. Things seem to have crumbled and halted after their exit. In fact, many an African leader feels extremely pleased when things fall apart after they leave because this, to them, proves their indispensability. But true leadership begets other leaders and ensures continuity long after the leader has left the podium. In the case quoted above, when we have all gravitated to other stations in life things should have continued to properly function. But then, our leadership quality should be tested largely by our legacy, of what standard it is. Is the next generation sufficiently empowered to carry the torch a mile further, or are they left
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groping in the darkness? Have they been transformed from followers to leaders who themselves are busy passing on the baton? What succession plans do we have in our present endeavours? Sadly, the African generally leaves things to chance and detests any succession plan talk as they view this as a clandestine lethal scheme to eliminate them. Look at the wrangles that rock many a political party or grouping after the chief architect passes on. I have in mind the UPND and ZADECO sagas after their founders passed on. Another point refers to the MMD in 2001 as well as when Mwanawasa fell ill in March 2006. In all these instances, serious leadership crisis ensued. The incumbents perhaps saw that one foot was in the grave but vehemently refused to relinquish their tight reign on power until they were at the brink of death. Others even breathed their last while tenaciously maintaining a sustained grip to the mantle. Only when they became food for worms did they let go. In one sense, they were valiant in that they had something to live and die for, but in another, they created more problems than solutions for progeny. Our Western friends beat us on this score. True Leaders are never content to leave anything to chance and endeavour to proactively prepare for the rainy day ahead by ensuring that their highly organised inward disposition thinks about progeny and the inevitable rainy day ahead, which might come sooner than later. This is proactive thinking and acting. True leaders are in charge of their destinies, show direction and diligently chart the course into which others voluntarily buy into. 2. An action orientation and never entangled in the trappings of success The strategic leader is always action oriented and never procrastinates or put aside something that could well be immediately handled. The leader is restless until all things are done timorously, meticulously, ethically and diligently by all parties concerned. S/he infects the team to the extent that they too begin to feel weird when they do not proactively respond or act. In these globalisation days, multiple decisions must be made in a short time frame in order to keep afloat in the turbulent business world. After deciding, implementation is inevitable and that, at lightening speed. Many Managers suffer from either indecision or “bureaucrasis”1 which cripples the organisation. Action, action, action! is the watch word and motto of the successful post-modern leader. 3. A vision of where the firm is going and loves collective success
1
Coined by the author to denote chronic bureaucracy
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The 21st century business leader has a unique clout and acumen for business, always forward looking and a few steps ahead of his/her peers. The said person glides high above team mates looking far ahead akin to the sharpeyed eagle and yet strategically keeps in touch with the team. By that token, s/he sees danger and opportunities long before the team mates do. Thus, the person has a clear vision, goal, contagious zeal, resilience, integrity and determination to achieve the near impossible with the human eye. Some migratory birds like the Canada geese are believed to use the earth’s magnetic field/pull to navigate and plan the migration route. No wonder they scarcely miss the mark. Sadly, many Managers’ thinking is encased in a box and cannot think outside or beyond the box nor read the dynamic environment in which the organisation operates. As a student, the author once interviewed an executive about the potential competition from new market entrants, threatening the organisation. The response was stunning. First, that person was baffled at the question because as far as he could see, their company was by far the greatest in Zambia and by that token invincible! That was serious myopic thinking indeed. To the contrary, the strategic leader sets benchmarks and endeavours to surmount them whilst leaving room for emergent strategies. S/he envisions and sees clearly where the organisation has been, is and hopes to go, both in the long and short term period. A shared Vision culture is nurtured, as it were. An illustration will be handy here. The late US President, John F Kennedy gives us a good picture of a visionary. In the early 1960’s (May 1961) at the height of the cold war and race to the moon, Kennedy declared that by the end of that decade, an American would walk on the surface of the moon. It looked an impossible feat at the time but on 20th July 1969, Neil Armstrong treaded the lunar surface.
NASA
Momentus occasion, Neil Amstrong on the lunar surface
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Interestingly, the US govt that year also had a budget/GDP surplusθ for the first time in nine years. Further, within a space of five short years that followed, 17 American astronauts (why not coin them ‘Lunarnauts’, to distinguish them from the regular astronauts?) walked the surface of the moon. Kennedy himself never lived to see his dream come to pass but it was actualised almost six years after his tragic assassination. That is visionary leadership! Indeed, as some one has aptly quipped, “the vision outlives the visionary.” 4. Excellent communication skills Apart from the obvious expected excellent writing skills, the strategic leader possesses a rare and excellent interpersonal relationship ability as well as other effective communication skills both verbal and body language. The person’s inward and outward disposition is magnetic, attractive and inspirational to all s/he comes into contact with. The leader is aware of the implications of defective communication and moulds a personality that attracts others. In addition, the leader usually has a charismatic personality, is eloquent and easily articulates issues summoning every contagious prowess embedded upon their chests. Some Managers unfortunately are dreadfully weak at communication despite having good heads and hearts. Others communicate by blows or unprofessional verbiage avalanches. Still others, do it by casting intimidating stares at their “team mates”. 5. Self confidence If there is one mark that should characterise a leader, it is confidence in whatever s/he undertakes. Scanning the galaxy of the most effective leaders over the fame horizon, this is one silver lining that passes through all of them as though they were bred from the same mother. For instance, look at the late Ronald Reagan, once President of the United States. He succeeded to a large extent due to his confidence and composure. A frail and unconvinced look does a lot to cripple the worthy cause advocate. Put differently, the leader is optimistic from the start and keeps the fire burning through out the contention period. On the Zambian scene, Fredrick Chiluba was by far more confident and eloquent than Kenneth Kaunda (though KK was confident) or Levy Mwanawasa. Their characters are worlds apart with θ Refer to the book, “Business” by Pride, Hughes and Kapoor pp 15. Could it be that the USA (NASA) was busy spending huge sums on the prior space programs such as the Gemini and Apollo 1-10 missions? Perhaps it was on the arms race including the 1962 missile stand off between the USA and Communist/Socialist Cuba
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one carrying a sinister laugh practically difficult to predict while the others uncontrollably throwing tantrums all over the place. I am sure all the cockroaches must have vanished from State house soon after the latter character assumed the mantle. Let us take note here that when confidence is mentioned, we do not mean one who is loud mouthed, noisy, nosy or obstinately bigoted and proud. Neither do we propagate the fact myth that all eloquent people are right, then Chiluba, Bush and Blair would be good men. Many confuse confidence with pomp and show. Mr Facing both ways and hesitancy are clone twins to be avoided at all costs. 6. The ability to take risks The post-modern leader takes calculated risks. Leadership entails risk taking. The immediate issues surrounding the person should not over shadow the long-term goal nor cripple the strategy. Those that would always like to play safe rarely achieve much but the daring do. Accountants have persistently been accused on more occasions than once for being extremely too careful to do anything. The accusation is that Accountants are rarely daring but always stick to counting visible beans. If they cannot see the beans, they will stop there and go no further. Another person has observed that highly educated people rarely take risks because they suffer from “analysis paralysis” unlike the “Kaponya” or “ba tamangaΗ” who have nothing to lose either way. A curious observation reveals that generally, people with a Masters or PhD qualification rarely start up and maintain successful businesses but rather are often employed by the less qualified, why?♣ Could it be that the suspicion highlighted above is true? Take a leaf from the Nchito brothers who stuck out their necks when the rest of the senior lawyers went into hiding like roaches only to reappear after the “coast was clear”. The brothers are indeed serious risk takers, no wonder they have made it to the top. 7. The ability to motivate (an animator) True strategic leaders are inspirational and go a long way to motivate all and sundry. Once one is in their orbit, they instantly feel motivated to do something that they would ordinarily shy away from. Motivation has to do with the state of being aroused to voluntarily do some thing towards a Η
Briefcase business people of no fixed abode or premises. Refer to an attached anonymous e-mail write up in appendix 2 “why do the smart guys work for the damn guys?”
♣
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directed goal. This can be done in a diverse context or a fair mixture of people from different walks of life. A place where people voluntarily work resiliently for long hours without extra pay or supervision is usually a place where staff are motivated and spurred on to bring out their latent potential to the fore. The leader can motivate in a number of ways such as visiting staff, lobbying for better conditions of service or simply empathising with all regardless of their status or position in the organisation. Good leaders do not pick and choose who they will interact with but rather radiate invisible warm beams to all and sundry. More will be said about motivating people when we consider the People Management component later in the book. But suffice it to say that the strategic leader is one that has this prowess to radiate warmth, energy and infuse determination into other people’s lives. Once in their orbit, there is great positive energy generated. The writer vividly recalls the warmth that characterized the RAPIDS program start up phase in the earlier days in late 2004, what a good feeling it evoked to belong to that team! 8. The ability to generate loyalty and goodwill (leadership clout) Loyalty entails commitment, belief and trust in some thing or some one to the extent that whatever they say, you believe them without question. In another sense, loyalty has to do with people developing an affinity for a particular brand. This is known as product loyalty. For our purposes, the leader has some amount of a voluntary cultic following within and with out the organisation. This is not as a result of position or status but intrinsic latent attraction. A friend once told a story involving Zambian travellers in South Africa’s Johannesburg. It is said that some bandits fell upon them (Zambians) and staged a broad day light robbery demanding all the valuables including passports. Upon discovering that the victims were Zambians, the thieves suddenly changed their mind, handed back the loot and simply demanded a share before they vanished. Prior to disappearing, they stated that they ordinarily would rob everything but because of the role Zambia played in strangling apartheid, their hearts are softer towards Zambians. See what the power of goodwill can do! In other places, once you mention the name “Kaunda”, you will instantly be set free! Usually, the followers ensure the leader is protected and obeyed without question. Libya’s Gaddaffi is a point in case. I am not too sure about our incumbent President (2007). The cases we have seen in recent years involving high profile statesmen and women are instructive. Names such as Jacob Zuma, Bill Clinton, Nelson Mandela and a whole host of others flood the mind at this stage. These, in some sense are what are called “Political saints” who can almost never go wrong in the public eye. Imagine for a moment that a 153
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non-entity committed the same misdemeanour; their reputation would be irreparably damaged. To generate voluntary loyalty, the leader must possess what it takes. Hypnosis is in no way hinted at here. 9. High integrity This is the leaders’ hallmark if they are to draw proper loyalty, motivation and support from the team members. The integrity levels matter much in that they cause who ever is dealing with the selfsame leaders to either wholeheartedly believe the speaker or simply dismiss them. If a leader is morally bankrupt or weak in some principle areas, they cause people to suspect rather than support them fully. Corrupt leaders rarely have a genuine loyal following because when those corrupt practices that generate apparent wealth are caged, then the followers scamper in all sorts of directions. Successive African national leaders sadly have suffered from this vice. There are exceptions to the rule though such as Mwai Kibaki of Kenya (as at 2007) who has clearly displayed unique prowess to change the face of Kenya, no wonder nearly 98% of Kenya’s budget is financed from within in a space of only three years! Sadly, the Zambian Presidents have been liars at times. The constitution adoption process, ZANACO sale and Kashiwa Bulaya suspicious nolle come to mind. In the NGO world, financial integrity is critical. In many ways than one, it does not matter how one lives morally as long as the cash and organisational goodwill remain untainted. 10. Team building skills Ideal teams operate like the human body. Different body parts perform different roles and automatically effortlessly coordinate. For instance, as this sentence was being written, the brain and the fingers were coordinating at all times. Further more, the team is akin to a football team with players manning different positions and each player doing their utmost to deliver the ball to the right person and ultimately to score. In that sense then, a team has various players with different talents and all these are harnessed towards one end. The Leaders’ task is to coach, place, mentor, have a keen eye on the group dynamics and sharpen the players. This mentoring process may well mean taking time with each individual player to ensure their strengths are further fostered. These skills must be deeply engrained in the leaders’ bosom so that s/he can pass them on to others, some times painstakingly long but with a willing and patient heart. Many fall short at that point as they expect instant results as soon as one is hired. Orientation is critical. The leader has the capacity to build synergy, a goal-scoring machine out of different players. Many team members turn out to be goal snatchers as it were, if 154
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properly positioned. Suggested ways to practically build teams are dealt with in the People Management chapter. 11. Operations experience (hands on) Experience is becoming a very critical factor in employing some one. From the author’s experience and observations over the years, it has increasingly become clear that academic qualification merely initially catches potential employers’ attention but beyond that, what matters is performance. The papers usually cease to be critical after the interview but what counts is output. In other words, “show me your papers after your output has spoken for you”1 Many professionals lamentably fail on the pitch as though they do not have sufficient grey matter between their two ear lobes. There fore, in some instances employers have tended to prefer a candidate who has more experience over the one who has the right papers but no experience. Remember that the businesses are there primarily for profit, result orientated and have no time to coach or teach because that is perceived needlessly costly. It is assumed that the experienced worker delivers better and timeously. More than just experience, the potential leader must have successfully run a department or previously held some position of authority whose results are positively evident. In the NGO world, Management skills in running a Project or Program is key as many merely academically inclined professionals are a scandal on the pitch. Hence, operations experience becomes critical for the organisation to continue scoring. 12. International experience In this global world, a new generation of international workers has emerged who are no longer bound to specific borders or localities. Said differently, in the global context, nationality does not tie down people anymore. The international workers possess qualities that can operate in diverse cultures and yet wittingly wiggle his/her way round situations. Ethics, politics, legal frameworks, and religion do not catch the international leader napping. S/he does not allow the Self Reticulum Criterion (SRC) determine the way the world is interpreted. Any leader that has international exposure is definitely an asset to the organisation and can thus confidently lead the team into new frontiers without much ado. This is because of their maturity and broad mind. 13. Consistency, resilience and objectivity 1
Coined by this author
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Consistency in character, maturity and objectivity help to make the strategic leader even more reliable as opposed to the common regular Manager that depends on position power. The strategic leader does not relax but feverishly works away until the task is done. Bill Gates is a case in point. Despite being the richest man on the planet for many years, the man works like a slave so that he can keep ahead of his competitors. His fire has, in all probability, infected others too whose resilience levels have been heightened. One mark is that Bill has been consistent over the years and as such managed to build an empire that will probably outlive him many years hence. 14. High positive energy The Leader is one whose positive motivational energy levels far outstrips every one else. This person has the energy, drive equal to the task and the will to carry every one along in the process. They are a marvel to watch as they exert their energies in a particular direction, until the work is done. When the team members are around him/her, they cannot help feeling secure and a sense of motivation to persevere further. In other words, the leader makes people feel that they can do it after all because it is not as difficult as previously thought. Though some leaders are usually labelled workaholics, necessity drives them. They work long and hard, many hours after their followers have gone to sleep. An example is South Africa’s Thabo Mbeki. One wonders where he finds time to write a weekly letter to the ANC amidst all the hustle and bustle that attends plot one duties. Perhaps he dictates while another writes and refines. Even if that were the case, writing sensible things requires quick and systematic thinking. It is hard labourious, hectic mental work indeed unless some one is peculiarly endowed like Professor Fackson Banda or Mr Chibamba Kanyama. 15. Diligence and determination Slothful people rarely leave an indelible mark behind them. As a general rule, those that would shake the world, as it were, with their presence, are those that are resilient, diligent and determined to achieve their goals despite the odds. They perceive problems and obstacles as challenges and opportunities. In the said challenges, they see opportunities as mere stepping-stones to the next level of usefulness. They neither rest on their laurels nor wander around complaining about the world’s unfairness or people’s crooked nature. Instead, they are up and about until the goal is achieved. They do not easily cower away but face issues head on with singular boldness, assertiveness, optimism mingled with intuition and tact. When they undertake a task, they are not the sort of people who produce 156
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mediocre quality half complete jobs, but rather, see the bigger picture and ensure they take the best route towards that end. Visionary leaders are not quitters but finishers once they embark on a task. 16. Open minded and willing to learn The leader must not be too rigid or one track minded on the job, but rather be single minded and ready to learn new things from any body regardless of their status. They do not take offence once challenged but are ready to tap knowledge or amend an imperfect practice once a better method of doing something is proposed. The average Manager today is much too confident, obstinate, proud, bigoted and egocentric. In Africa, another dimension kills our leaders as they glide in their own supersonic orbit and appear as fierce as a hunger stricken lion. In other words, the power distance between the Manager and subordinates or team members is much too large. The student is encouraged to take time off and see how they behave towards their superiors. At one time, it was quite unthinkable for work mates to call each other by first names but as the team spirit culture has taken root, people are quite free to call each other with some measure of familiarity knowing that they are on the same team. A sense of community is cultivated. Care however must be taken to ensure that people remain professional lest unethical behaviour ferments. Scan the average traditional African home of yester years, just how lofty the husband was above the wife! Today, many good couples are friends and view each other as partners. Minimise power distance and constructive feed back freely flows either way. In short, where there is no readiness to learn, the Manager fumes and despises any body junior. Any one with a contra opinion is labelled an enemy. Consider the continuous tussle between the opposition parties and Government in Zambia today. This kills innovation and initiative because operatives are intimidated and dread to be shouted down or misunderstood. They might just turn out to be casualties at the next appraisal and contract renewal period. 17. Mature and emotionally stable Where the leader is always blowing their own trumpet and carrying airs around, just know that maturity is lacking. They may be intelligent alright, but they must always remember that they radiate because they stand on the shoulders of earlier giants. Furthermore, the strategic leader is stable and will not throw tantrums or break into fits of rage without due consideration who is around let alone the impact on others. Unstable fellows blow their top
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at anytime unlike the sober, mature, steady leaders that objectively handle issues. 18. Develop Capacity in self and others (Self replication) Where a true leader has passed, a trail blaze is often visible for a long time to come. They often leave a classic legacy. Operations continue smoothly as though they were around and yet they have long moved on. Said differently, as they intermingle with people, the said leaders posses a unique potency of passing on their skills to others so that once they have left the centre stage, the machinery continues to sustainably run. They pass on these skills because they are constantly focussing many years ahead. Further more, since they have an agenda, they delegate the simple things so that they can concentrate on other weightier and newer things. Dr John Maxwell believes that the leader must periodically be constantly doing something else as time goes on because they will have empowered others to take over their previous tasks. Doing the same thing for too long is counter productive and makes one run out of ideas. Where the leader feels insecure, they dare not empower others lest some one does better and grabs their job. The author once challenged a proud Manager who had moved from one job to the next and was boasting about their previous huge success. Once confronted with the fact that everything had ground to a halt after their departure, the said pompous Manager was speechless. The true test of a leader is continuity long after their orbit exit. As intimated earlier, legacy tests leadership quality. King Saul had a keen eye over his kingdom, recruiting and sharpening the best soldiers. This consolidated his base (I Sam 14:52). Nature itself teaches us that we are not here to stay. Some migratory birds like the Canada geese teach us to build sustainability into our systems so that if one is tired or moves away, another swiftly takes over leadership. It is said that some birds move in a triangular form with the leader at the pinnacle. Once it gets tired, it slides down to the side of the triangle while another immediately takes over. That is how some terrorist organisations are believed to operate and thus continue long after the master mind has died, arrested or is gunned down. The picture below from the internet reminds us of sustainability engrafting task. Leader
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Photograph by Chase Swift/CORBIS Canada geese in migration
Another trait under this head is the aspect of talent nurturing and succession planning. By the time the leader leaves the podium, s/he ensures that they have a pool of potential successors as well as people whose talents have been developed to the highest levels possible. Talent management is a missing ingredient in today’s companies. No wonder most of the people being churned out of our Colleges and Universities have weak skills, low competence and a withered talent base. Creativity and imagination will have been long stifled by various factors by the time the students graduate and must relearn when they get a job. That is where the leader has to ensure they get it right, detect potential and immediately begin the nurturing process. True leaders beget other leaders. 19. All out to succeed Leaders under take any task fully determined to carry the day. I am yet to come across a football team that entered the pitch with a view to lose. They are all hopeful until the last whistle blows. In between, they do their best to get as many balls behind the net as possible. Granted, as they enter the pitch, they may have some doubts but at worst, they gun for a draw if that does not jeopardise next round chances. True leaders are aflame with success and will not settle for less. They refuse defeat and summon all their energies to the last. A story is told about the legendary basket player, Michael Jordan, that once he is on the basket ball court, he is so passionate to win to the extent that this fever spreads to all his team mates. Once on his team, you feel confident to win. That is how a leader should be, inspiring confidence, as it were. Success is first and foremost in the mind. Think of Kasparov, once the world chess champion, playing against deep blue, the computer that could
As told by Dr John Maxwell in his monumental series, 21 irrefutable laws of leadership tapes and CDs. I recommend these to you.
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calculate 200 million moves per second against Kasparov’s two. Although it beat him in the first game, he went ahead and beat it in the subsequent games. We learn a lesson here, it is not the number of moves in a second but the quality of each move, no matter how few. In fact, astute strategists specialise in few but high yield lethal moves. In another sense, one must have the ideas crystal clear in the minds’ chessboard. Apart from the moves, there must be strong will and settled resolve to win. Go on the pitch, as mentioned earlier, as though you have already won. Kalusha Bwalya was once fondly called “Lwisha” because they man would not just give up until the final whistle blew. Athletes tell us that half the race is won in the mind, a determined resolve indeed. Leaders always think, dream, drink, and relish winning. The apostle Paul was one such leader that was all out to succeed. When ever he travelled places, he had one firm conviction that he would succeed despite the hurdles and odds. He was a resolute mortal (I Corinthians 2:2) 20. Selfless commitment The powerful leaders possess a rare sincere disinterested genuine commitment to whatever cause they put their hand to. They do not rest until everything is successfully executed according to plan, yea, hang around until everyone is safely on board. The selfless leader (or servant leader as others have called it from Matthew 20:27) has a burning virgin devotion to duty, is focused, service inclined and single minded. They refuse to settle for less and perseveringly soldier on to the desired haven. Committed leaders are reliable, approachable and to some extent do not have fixed working hours as they are available 24/7 depending on the issue at hand. Further, they trust others and willingly backstop while building capacity in others, cognizant of the succession issues, for we must soon relocate to other places either by death or promotion. In a word, leaders are a faithful energy while around. Once they put their hand to the plough, there is no turning back (Luke 9:62) 21. Life long students Leaders read: Leaders are always reading. They read about every thing that they can lay their eyes on. Their unquenchable thirst for more knowledge is simply amazing. Many people in Zambia only read for two reasons and for a season. It is either they are confronted with a career threatening exam or where there are short term and immediate egocentric benefits attached to the bait. Outside that, many would rather be watching TV, movies, or listening to music. Zambians like to relax at the nearest detour and remain in relaxed mode all the way to the grave. I once attended a workshop where the 160
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Operations Director lamented the poor reading culture among members of staff. After that meeting, one would have thought people would be fired up to read but alas, alas indeed! True leaders are life long students and pluck knowledge from any tree whether it is the formal or not. They seem to have one eye on the book while the other’s telescopic vision is refined to see even further into the future. In other words, the eye’s resolution gets better as more knowledge is added to the brain data base. Some of the trees from where the leader plucks knowledge include the dynamic environment, the internet, the grape vine, the book shop shelves, news paper, churches, various symposiums, and individual faces that cross their path on life’s journey. Other trees exist in other forests. 22. Readiness to change (Flexible, learning) Strategic leaders are not only persistent but able to mutate when the facts dictate other wise. The leader is quick to spot trends, blind spots and then activate emergent strategies to remedy the situation for the greater good. S/he not only is ready to change but freely challenges the status quo by the same token. In short, the leader is responsive, flexible, a diligent and smart worker. 23. Strong interpersonal skills Over the years the author has come to the following firm conclusion: “It is not the many presents but dialogue that builds relationships” This maxim is validated by the myriads of examples from all corners of the world. A critical analysis of many households either affluent or not reveal that no matter how many presents one is showered with, they remain essentially the same. Many spouses, relations and associates have lamented that despite the many gifts they had received, they nursed an aching void within. In some extreme cases, the said people have threatened or even committed outrageous acts such as suicide_. Granted, it is important to receive presents for motivational reasons but this alone will not do. The apt leader ensures that s/he complements the said gifts with a strong inter personal relation skill. This shows itself in many ways such as a consistently unbiased treatment of colleagues and always being available for them. This has a lasting impression on people’s mind and the selfsame people speak well of
Phrase supplied by the author. Check the Post newspapers of 9/12/2005 and much earlier. Suicide is much more common in Zambia than at any other time. Could it be that the reported cases have just shot up or it results from hopelessness or human sacrifices dangerously lingering in many Zambian lives? We have no telling but can only speculate for now _
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their leader where ever they go. The leader must endeavour to pass on vital competencies to his teammates so that they (colleagues) are empowered with life skills far beyond the job related skills. This may include the private life though due respect must be accorded. In fact, the right leader naturally attracts people’s confidence where people voluntarily consult them on many affairs. Leadership is about people management and influence. 24. Ability to connect and network Strategic leaders often possess the rare attribute of connecting with the right people at the right time. In one sense, their lot falls in pleasant strategic places where they link up with key people but in another, they discernibly curve a niche for themselves, positioning themselves in such a way as to reap maximum results. While others spend their entire lives trying to discover or actualise their potential, strategic leaders have a discerning eye that quickly scans the internal and external environment and position them selves in success’ path. From experience, the author has learnt that one’s educational background does not necessarily guarantee success but ones’ destiny, resolve, determination, positioning and self-application. To the extent that one thinks of them selves, to that extent they will go. A cursory view of the Zambian scene confirms this theory. Names like late Anderson Kambela Mazoka (Engineer), Hakainde Hichilema (Economist), Christopher Kangwa (Pharmarcist), Gershom Musonda (freight business man), Lishomo Lishomo (Economist), the Nchito brothers (lawyers) and so on, come to mind. All these have succeeded outside their natural spheres of study. Where others failed, these people saw opportunity after opportunity. Further more, these people knew where to cut the first cut which in the end opened more effectual doors. For instance, Mr Hichilema was for many years Executive Director of the Zambian branch of the global class Auditing and consulting firm, the Coopers and Lybrand, yet he is an economist! Reading through his profile in the Post of Sunday 25th June 2006 revealed that the gentle man had global connections, which enabled him to rapidly grow into a wealthy gentle man, at age 46, according to Zambian standards. The gentle man has investments all over the world and has held many board chairmanships at home and abroad. Anderson Mazoka was another enigma, although twenty years senior to Hichilema. He not only acted as Hichilema’s mentor but was an astute and shrewd business executive, always forward looking who confidently determined his destiny. He once worked for the world famous General Electric, was CEO of the Zambian Anglo American branch and had vast rich corporate experience too. If wealth is a success indicator, then Mazoka had it right. By that token, he successfully passed the piece of his 162
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success armour to his young disciple, who has proved himself as his own man too. Time and space eludes us to talk about Kangwa, Musonda, Lishomo and the vast array of unwritten financial giants of our day. The take home lesson for this point is that astute strategists have rare network and linkage abilities that propel them to higher orbs. 25. Attention to detail Strategic leaders are usually good at galvanizing, interpreting and using various details. They have a unique ability to look at a large volume of information, financial and otherwise, synthesizing the relevant and discarding the useless. In the heat of a busy work schedule, many a leader glosses over many a serious detail that result in their ruin, image damage or some serious scandal. It is difficult to rise from such ashes to the former prominence. In his work experience, this author has noticed how careless and therefore timid managers often are when they discover their weakness. Others take on too much, over looking the basics in the process. As much as it is important to have a good forward looking and strategic personality, you need to have an intelligent appreciation of a wide section of disciplines. Lawyers, scientists and accountants especially make much of detail. From experience, most Zambian Managers are weak on financial management and hide in the fact that they “are not Accountants”! Its high time they ventured beyond their boundary of expertise and acquired a working knowledge of finance being able to easily interpret the financial statements. They should know where to look as well as devise a quick method to check a large volume of work. Apart from the financial issues, they should not rest in the generals but insist on the details to be deposited at their fingertips. 26. Focus-single minded, goal-oriented and organised Leaders do not have scattered minds and this shows in their priorities, logic, sequencing and general direction. Once they start something, they do not leave off until the job is done, single minded all the way. The goal guides their strategies as they chart the best way forward. The author has met many scatter brains masquerading as leaders who can scarcely lead their own families! Chaos is the order of the day. Their rainbow coloured dressing tells the story. 27. Good and astute organisation politician A leader reads the times and knows exactly how to behave in a given context to the extent that people not only emulate their behaviour but voluntarily do work for them. Whether we like it or not, each of us exercises some form of 163
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politicking to influence decisions or get things we want. The strategies employed to winsomely get our desired goals is in itself politics. The leader however uses politics positively and buttresses it by their correct living. The best statement rarely challenged is having words and life intimately married. Any variance gives leverage for retort and defiance. Similarly, if you are to progress and make headway, there is some amount of political clout that you must garner or else languish with your high credentials. Be sincere and genuine though! Gerald Ferris has done an excellent interview about politics at work. Refer to www.ccl.org/leadership/enewsletter/2007/APRferris.aspx for details, worth perusing through. 28. Deep and wide knowledge base. Leaders fly high like eagles as well as go deep into the sea like nuclear submarines or deep space probes. They have an ability to get information from different sources, analyse it and internalise for future use. By that token, they are usually better informed about many issues ahead of the team and thus competent to handle many varied issues at the same time in a professional and distinctive manner. They are never content to have limited information or vague ideas about something for that matter. Often, they will have already taken a position over an issue before others begin to debate it and wisely fuse into the team to guide as well as learn. They rarely enter a discussion completely blank but will have synthesised many relevant perspectives and enter the discussion with a view to confirm their thoughts or amend them where necessary. They are able to handle a wide range of issues running from Politics, religion, science, international relations, ethics or any other important issue of the day. 29. Persistence and optimism. Leaders see opportunities where challenges abound, yea, they turn challenges into stepping stones to higher ground of service. Their primary focus is success not failure, although they give room for it (failure) as part of the whole package. But even when they stumble and fall, they resiliently bounce back until the goal is achieved. Persistence and perseverance is their hall mark. While everyone has long packed their bags and gone home, they still linger around until they achieve their goal. They have an exceptionally unique “staying power” around them. 30. Keep the machinery running whether applauded or not. Some top schools, including Cranfield (UK) have been researching on the other side and less heralded side of leadership. The thinking is that for things
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to continue operating seamlessly around the world, there must be some kind of leadership exhibited at every stage otherwise nothing would be done and the world would curve in. These researchers surmise that heroes are found literary every where in life, what differs is just their calling and position in life. For instance, for a church to be well run, good leadership is key, though the same may have only ten faithful and diligent members with a shared goal and passion. This view is frowned upon by other thinkers. But we add our voice and agree that true leadership is at different levels as long as some one is following the other. 31. Thinking outside the box Strategic leaders are always looking for new ways of doing something more efficiently. As such, the will stop at nothing to gather or innovate new viable ways of doing some thing or solutions to a problem. They are thus never tied to only one way of doing something but will view some thing from different perspective before offering the best prescription. This trait sets them apart from the regular leaders. In addition to thinking outside the defined or known parameters, strategic leaders also think within the box. They can amazingly use what they have in hand to come up with a solution to many a puzzle. Whilst others are looking out for hand out solutions, they come up with world class solutions to the surprise of everyone. Thus we have crystallised the salient characteristics of the modern strategic leader, we now proceed to compare and contrast the Strategist, Manager and Leader. Differences among Strategist, Manager and Leader It is an established fact that not all Managers are leaders though most leaders are managers too. The leader-manager in the right dosages is an extremely rare occurrence on this terrestrial ball. Either, one leans on one side or the other. People have varying degrees of the Manager: leader ratio. The question that concerns us however at this stage is whether a strategist is a leader and manager at the same time. While the leader-manager paradox is nigh settled, the strategist-leader-manager equation is comparatively one that receives far less attention than it deserves. In a sense, it is virgin territory. Various reasons, including the splitting hairs, analysis paralysis avoidance have probably contributed to why this area is less visited. But me thinks it is a critical point worth exploring because this could help lift the lid on many a CEO. This could help solve the problem why some reputed star leaders seem to plummet or flounder on unfamiliar turfs different from their previous
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assignment arenas. The strategist is basically one that peers into the future and proactively formulates tangible pragmatic ways to avert danger helping the organization turbo to unique higher orbs. Take for example, the founders of the McDonalds food chain. It is said that the two brothers were dedicated strategists and excellent Managers in their own right but failed to expand their powerful brand to global levels, why? The reason probably is that the critical leadership ingredient was missing that emboldens one to set a goal and unflinchingly hurl oneself towards it. Leaders, by their nature, are goal getters. The two brothers had what it takes to originate, plan, innovate, suggest new ideas, strategize and set trends yet they lacked the necessary critical leadership drive. Until they disposed off 100% of their share holding and patent rights to another more versatile leader, only then did the organization exponentially explode. In no time, it had shops dotted all over the United States landscape. Today, if the original MacDonald brothers were to resurrect, they would marvel in disbelief at what their original creation has turned out to be. In one sense, they would be pleased that their creation has lived on beyond them. In another sense, they would envy the one who propelled it further by his resolute mettle. That is how life is, with its winding, meandering twists. From the brief story above it is apparent that a strategist is not necessarily a leader, let alone a manager. Below I have attempted to crystallise the differences among Manager, Strategist and leader: STRATEGIST Visionary, intuitive and imaginative Excellent forecaster Forward thinker Easily and quickly learns from the past models. Formulates alternative course of action Sometimes solitary and lives in an imaginary world
MANAGER LEADER Maintains the status quo Challenges the status quo Methodical and largely Thrives where there is technical chaos Daily operations person Visionary and dreamer Directs, controls Gets things systems and resources accomplished through others. Has formal position and Inspirational, motivator authority (derives status from job title) Position power and No formal structural sometimes uses it to get position things done, coercive at 166
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A think tank, critical reasoner Analytical & good planner Articulate and constant reader of the times Thinks outside and beyond the box Objective and independent Largely theoretical and can give many potential strategic futures…good simulator Often operates in the proactive mode akin to Covey’s quadrant II theory Creative and innovative
Deep perception prowess Systems thinker (SCQARE) logical mindset Methodical & Technical
Billy Chilongo Sichone
times Restricted to standards & processes More focused on the standards, processes and deadlines Usually inflexible Scope limited to work area, Job description Delegates Coordinates
Influences and inspires people Originates ideas quickly and actualizes them Intuitive and a good broad thinker Flexible High integrity Moral energy, passion to pursue something
Result oriented, energetic and drive
Selfless and sacrificial, Empathiser rather than sympathiser Willing to think and live outside the box A constant learner
Good human relations and communicator skills Usually Philanthropic Empathetic and pragmatic Team player and Play maker Coach & mentor, team player Avid reader and life
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Micro view to things
long student Both Macro and micro view to things
Scanning the Zambian grave landscape, many dreams lie buried underneath those burial grounds. While they lived, people had great plans, strategies and hopes when death suddenly visited them. I bet most of those strategies were incubated in the secure brain catacombs for years but never got activated. Zambians are generally oral traditionalists who will not take time to document or pass on documentary evidence to the next generation. Great dreams die with them. Ironically, Zambians are known to conceptualise amazing things once in a foreign land that they do not do at home! I have here the galaxy of distinguished professors, PhDs and sports people littered all over the globe whose profiles very few would equal. At this time, names like Professor Clive Chirwa (Bolton University chair) who was part of the latest Air bus A380 design, Professor Michelo Hansungule, a legal expert in South Africa, Dr Owen Sichone in South Africa, Professor Mweene at NASA, Professor Fackson Banda, Professor Muna Ndula, Late Professor Kasoma, late Professor Lameck Goma and many other distinguished academics flow through my mind. These would have turned Zambia upside down in a day but as things stand, the scarecrow chimuntu management has driven them all away. But that is not all, we have (and have had) world class sports people which include the likes of the legendary Godfrey Chitalu, Fred Mwila, Alex Chola, Charles Musonda, Kalusha Bwalya, Samuel Matete, Simutowe, Late Lottie Mwale, Late Chisanda Mutti and more recently, Collins Mbesuma and Esther Phiri. Among many other firebrands include the daring Nchito brothers, Peter Zuze, late Richard Ngenda, late visionary Dean Mungomba, fiery Lucy Sichone, the great King Lewanika, hard working Constain Chilala, late Professor Alfred Chanda and the list goes on. If all these were galvanized while in their prime and placed in the right places, what a different landscape would ensue! The tragedy is that Zambians are merely excellent strategic planners but poor implementers and managers. Tragically, the environment created by politicians is unattractive resulting in the unprecedented brain drain. For some reasons, things don’t get done at the right time giving mediocre output. Zambians repeatedly do a job before it actually is finally fixed, thus wasting the meagre resources. Furthermore, Zambians lack the determination, drive, self-confidence and possess a weak and flagging momentum. Any perceived obstacle cracks the motivational spirit. But true leader-strategists grow bolder and stronger as 168
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the bar gets higher. As Beatty and Hughes have said in their classic book, “Becoming a strategic leader…,” in many an entity, the missing piece is strategic leadership in order to guarantee an entity’s enduring progressive and successful going concern posture. Zambia needs more than just day to day ordinary operational leadership. It desperately needs fiery and highly turbo charged strategic leadership to more than just chart the course but offer direction to ensure the target is hit while the next bench mark is already in view. Strategic leaders always continuously hit new frontiers and never rest until the work is done. Once one target is reached, it means new work needs to be done so as to maintain a strategic lead, ahead of other potential competitors. What type of person are you? We hurtle along to consider strategic instincts development, stay with us! ====================================================== BIBLIOGRAPHY Andrews J.R, George Whitefield, Barbour and Company, Inc. New Jersey, 1990 Barker William, Puritan Profiles: 54 personalities drawn together by the Westminster Assembly, Mentor, 1996 Beatty Jack, THE WORLD ACCORDING TO DRUCKER: The life and work of the World’s greatest management thinker, Magna Publishing co. Ltd, 1998 Befus R. David, Where there are no jobs, Lam, 2005 Benjamin Todd, Dolle Guy, Learning to be a team player, CNN, May 30th, 2005 Blanchard Ken, The leadership pill, Marc Muchnick Free Press New York. London. Toronto. Sydney. Singapore 1996 Brake Terence, Managing Globally, Dorling Kindersley limited, 2002, London, New York, Delhi, Munich, Paris, Sydney, Johannesburg Bridges Charles, The Christian Ministry: with an enquiry into the causes of its inefficiency, The Banner of Truth Trust edition, 1959
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Bruce Andy, Langdon Ken, Strategic thinking, Dorling Kindersley. London New York, Sydney, Delhi, Paris, Munich and Johannesburg 2000 Carson Benjamin, The Big Picture: Getting perspective on what is really important in life, Zondervan, 1999 Carson Benjamin, Think Big: Unleashing your potential for excellence, Zondervan, 1992 Carson Benjamin, Gifted hands: The Ben Carson story, Zondervan, 1990, USA Chirwa E Clive, “Advolorem royalty of 3% shines light in dark tunnel” The Post April 13, 2008 pp XVI Covey R. Stephen, Principle centred leadership, Simon & Schuster, 1991 Covey Stephen, Seven habits of highly effective people, Simon & Schuster Dallimore A. Arnold, George Whitefield – Evangelist of the 18th Century revival. The wake man trust, London 1990 (In two volumes) Dubrin J. Andrew, LEADERSHIP: Research findings, practices, and skills, Houghton Mifflin Company, Boston, Geneva, Illinois, Palo Alto, Princeton, New Jersey Dunker Pierce Marilee, MAN OF VISION: The candid, compelling story of Bob and Loraine Pierce, founders of World Vision and Samaritan’s purse, Authentic Media/World Vision, 2005 Fox John, Fox’s book of Martyrs, Zondervan publications edition, 1967 Habecker B. Eugene, Rediscovering the soul of leadership, SP publications inc, 1996 Haggai E John, Lead on!, Kobrey Press, 1986 HayGroup, “What makes Great leaders: Rethinking the route to effective leadership” 2008
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Heller Robert, Effective leadership, Dorling Kindersley, 2000, London, Munich, Delhi, New York, Sydney, Paris, Johannesburg Holt H. David, Entrepreneurship: New Venture Creation, Prentice Hall of India Pvt. Ltd, 2006 Iverson ken, Plain Talk, John Wiley & sons Inc, 1998 Jeffrey Peter, Christian handbook, Evangelical Press of Wales, 1988 Lawson George, The life of Joseph, The banner of Truth trust, 1972 Loane Marcus, Makers of Puritan History, Baker book house, 1961 Masters Peter, Men of purpose, Wake man trust, London Maxwell C. John, The winning attitude, Pauline publications 1993 Maxwell John, The 21 irrefutable laws of leadership, Magna Publishing co. ltd, 1999 Mbewe Conrad, Challenges of the Christian Ministry, Kabwata Baptist Church publishing ministry…. Mbewe Conrad, Biblical Church Government, Kabwata Baptist Church Publishing Ministry, 2001 Morris M. Henry, Many infallible proofs: evidences for the Christian faith, Master books, 1974 Musonda George, Leading leaders: setting standards for success, Haven view Publishing house, 2001 Noll Mark, The rise of evangelicalism: The age of Edwards, Whitefield and the Wesleys, Intervarsity Press, 2003 Oakland S. John, TQM: Text with cases, Butterworth-Heinemann; 3 edition (June 2003)
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Obone E Aloysius, Economix: Its principles and practice in developing Africa, Evans Brothers ltd, 1977 O’Hara-Devereaux Mary & Johansen Robert, GLOBAL WORK: Bridging distance, culture & time, Jossey-Bass Publishers, San Francisco, 1994 Ramey David, “Strategies for becoming a more successful manager”, Strategic Leadership Association, Inc, Ryle J C, Christian leaders of the 18th Century, Banner of truth Trust Sanders Oswald .J, Spiritual leadership: Principles of excellence for every believer, Moody Press, Chicago, 1994 Sanders Oswald .J, Spiritual Discipleship: Principles of following Christ for every believer, The Moody Press, Chicago, 1990 Spencer Ichabod, A Pastor’s sketches: Conversations with anxious souls concerning the way of salvation, solid ground Christian books, 2001 Spurgeon H Charles, A Ministers’ farewell, chapel library (reprinted by) Swindoll Chuck, Leadership, Word books publisher, 1985 The Arbinger Institute, Leadership & self deception, Berret-Koehler Publishers inc. 2000, San Francisco The Executive Excellence magazine 1999 Issues Townsend L Patrick & Gerbhart E. Joan, How organisations learn, Financial World Publishing, 2001 Toycen Dave, The power of generosity: How to transform yourself and your world, Harper Collins Publishers ltd, 2004 Trump Donald, How to get rich: The secret of Business success from the star of THE APPRENTICE, BBC books, 2004 Tulgan Bruce & Martin A Carolyn, managing the Generation Mix: from collision to collaboration, Jaico Publishing house, 2003 172
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United States Information Agency, Leadership: Seven profiles in local government Weatherhead .D Leslie, Prescription for anxiety, Hodder & Stoughton, 1956 Young Steve, Great Failures of the extremely successful: Mistakes, adversity, failure and other stepping stones to success, Jaico Publishing house, Mumbai, Delhi, Bangalore, Kolkata, 2007
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Chapter Ten “Aim to develop a proactive rather than retroactive mindset” BS Developing strategic instincts What should one do in order to develop those unique qualities enabling him to read the times and take the right decision? What about developing the discerning eye so that one can safely and confidently anticipate customer tastes and needs? These and many other enquiries occupy the large chunk of this chapter. Unless one sharpens this intuitive prowess, they cannot succeed in any way. A number of traits and instincts must be nurtured so that the ship can be kept perpetually buoyant. Largely, this borders on knowing ones’ position and potential. In other words, knowing thy self as an individual entity will invariably lead to one rightly counting their men objectively and realistically. Further more, this process is life long, on going requiring much dedication, determination and resolve to perfect. It may well mean spending much time sharpening the tool. In the paraphrased words of Stephen Covey, you are encouraged to spend five hours sharpening the axe and then effortlessly cut the tree within the next hour. (One would suppose, Mr Covey read the scripture well in Ecclesiastes 10:10.) First and foremost, the individual or entity must know where they are going as well as where they have been and are. Self knowledge and awareness are fundamental key success factors before bouncing off the diving board into the pool. There after, you add the following traits: Intuition and systems thinking (SCQARE) Intuition is the rare ability to look into a situation, discern and prescribe the best remedy using latent mental parameters. This intuition can be developed over time by repeated practice of some procedure or activity. In other cases it is a natural instinct uniquely intrinsic in some one. The intuitive person has a special knack and able to see a way out where everyone sees a dam wall! They are able to look into a complex situation and put their finger in the right place to get things moving. A friend of mine, Mr Charles Bota≤ ≤
Mr Charles Bota is SHOPRITE Zambia Deputy General Manager (2006), having been with the shops for over ten years. Undoubtedly, he is the native power house to Shoprite’s phenomenal growth, expansion and success in Zambia.
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once said something very striking. He said “Billy, the moment I walk into a shop and stand at a particular place for less than five minutes, I am instinctively able to tell where the issues are”. His work mates often wonder how he does it but the point is that he has developed a high level intuition to the extent that he can accurately discern whether things are well or not. Another case of intuition will suffice. We once had a partial power cut in our home in Mongu. Half of the house had power while the other didn’t. After eliminating all possible problem sources such as the main meter box, I failed to locate the problem root and thus called up the local ZESCO company. Within a few minutes, they appeared on the scene and asked what the problem was exactly. I thought it was a complex problem but these men just walked up to the meter box and touched one point, and bingo, the power returned! They smiled and left me spell bound. I wondered how they knew exactly where to touch and fix it within seconds, that dear friend was intuition! A businessperson must develop intuition. This comes by practice, selfapplication, strategic thinking, planning and continued repeated situation simulations. That is why the ideal MBA program is critical as it not only opens up the brain horizons but also helps one to simulate from real life cases that have occurred in the past. The only problem with the case method is that the said cases are usually contextual and static while the external business environment is not only volatile but highly dynamic. That notwithstanding, the case method gives the much needed principles upon which to build. In the case of Mr Bota mentioned above, he has been in the shop business nearly all his professional life beginning from the clerical position and rising through the ranks within the shop in both the paratastatal and market arrangement. In short, he has been around long enough to be an expert in that field. There is no short cut to intuition building. The other way to develop intuition is to watch the professionals at work, read through and imbibe their wavelength. This may take time but watch their every move, utterance and action and try to read between the lines as well as the back ground notes/circumstances leading to such a position. Usually, by and by you get to grips with their way of thinking and firmly grasp the style upon which you develop. For instance, I have been remotely mentored in my writing by a historical figure called JC Ryle, former Bishop of Liver pool (1880-1900). His prolific writing has struck me over the years as one of the most pointed, pithy, pungent, potent and applicatory. I have and continue to read his works as he drew them from the Puritan wells. With 175
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time, I am able not only to adapt to the writing style but to discern a good piece of writing. Admittedly, there are other modern mentors besides but this is my main hero. The same applies in other areas as well in the business area where we happen to find our selves. The other intuition development step is to connect with the intuitive people for a mentorship program, formal or not. I have found this really helpful in that you receive one on one attention as you work your way round. Admittedly, intuition is very hard to teach because of its intangible nature but certain pieces of the armour can be passed on to the next generation. This program could include sessions together or taught as and when, in the normal course of life. With time, you and I appropriate the right lenses for our selves upon which we develop to lofty heights. For example, I have had mentorship program with a colleague of mine the last few years in the area of leadership development. In that program, we ensure we develop traits befitting a leader, challenge each other and size each other up. In that way, we make progress. Closely connected to the intuition is system thinking ability. One has to develop a unique ability to systematically and logically think through issues, processes and impacts of a certain scenario and prescribe the appropriate remedy or course of action. This calls for serious understanding of the status quo and knowing what path to take so that our present problems are mitigated as well as clearing the strategic direction of the organisation. There is a cause and effect approach to any problem. The basic principle is that you identify the root cause of something and then logically generate a solution. Thus, a systems thinker fixes the present problems and prepares the longterm route to achieve the goal given the present capacities in relation to the strengths, weaknesses, opportunities and threats. In a word, s/he has the big picture in view from which standpoint informed decisions are made. Some scholars have summarized systems thinking in the acronym SCQARE as broken down below: Situation: what is happening, where are we? Concern: This is a good or bad situation, empathy Question: What should we do to change the picture? What is the root cause of this, how interconnected leading to this present problem? What are the future repercussions if we act/do not act? 176
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Answer: Craft several strategies giving several potential strategic futures Rationale: What is our action based on? Why and how are we acting in this way? Evaluation: Now that we have implemented, what is the impact or outcome of our action? Strategy modification? Why or why not? Insight (In-sight, seeing deeper) Insight has to do with reading between the lines of something. This is a deep appreciation and grasp of something usually veiled to the average naked human eye but discernable only by the trained eye. We can further say that this “something” could be an event, words or deeds physically and outwardly seen which signifies a hidden matter. The visible piece is but a tip in the iceberg. The strategists’ task is to decipher and uproot the whole iceberg by bringing it to the fore for analysis and decision-making. Fish is generally found under water and will not ordinarily offer itself for trapping, rather, it must be looked for and lured to the baited hook or net. The fishmonger must thus know how and when to trap the fish other wise all is a wasted effort. The fishing season can elapse without any success. In a nutshell insight includes the deep perception into a situation popularly known as the “gut feeling”. Insight, like intuition, is developed in a number of ways among which include repeated experience with something or activity. Critical thinking If you are to beat the competitor at their game, develop a critical thinking mind set. Such a mindset is helpful in analysing their statements and figure out a way to use their own words against them. In other words, any sentence or strategy has its own weak points where you can penetrate and widen the crack. Capitalise on the weak spots where they least expect. This entails meticulously watching your rivals’ manoeuvres and based on what you see, quickly curve out a path that counters their strategy or at best totally confuses them sending panic frenzies in their camp. Build and widen the wedge between the truth and their words. The recent verbal battle between PF President Mr Michael Sata and Chinese Ambassador comes to mind. The Chinese envoy in a dramatic and sensational newspaper head line accused Mr Sata of being a hired gun. Mr Sata in turn accepted and used the words back at the Ambassador. In the end, Mr Sata appeared the victor while the Chinese official looked foolish and out of context.℘ ℘
Post Newspaper, 5th November 2007
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Sensitivity In addition to critical thinking, it pays to be extremely sensitive to your environment, within and without. Install a very sensitive indicator that detects any “tectonic” movements in your surrounding and thus enables you to mutate. Many think they can get far without this trait but nay, it is very closely connected to intuition referred to earlier in this chapter. For instance, we need to be extremely sensitive to the cultural context where we are doing business lest we run against the grain. Right and timely information Many times, we think that some people are more intelligent and have superior genes than we do. In a sense that maybe true but in another, they are merely better informed. They know where to source the right timely information and how to process it quickly for immediate application. Their processors are constantly churning out refined information upon which the mind makes decisions. Ignore a good information source and you are done. Clamour for more than just the basic information such as found in the public domain like the internet, notice boards or news papers but aim for some particular secret classified privileged inside information. Refined organisational politics are key as highlighted by Gerald Ferris and others〈. You lose much without this skill. Have the big picture in view To make the best-informed decision, adopt satellite view where you look over a wide area. From that high podium, you are able to watch all the parameters and make intelligent informed decisions.
〈
Refer to the www.CCL.org for more details on organizational politics, April 2007
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NASA The bigger picture from space In the absence of that, you make short-term decisions that require too frequent amending in an emergency fashion, which in itself is undesirable & expensive. The writer recalls how a narrow view of things repeatedly mislead him and caused sleepless nights. Always remember that in this global world, more than money, right, relevant and timely information is power. Develop potential strategic futures It is always prudent to have a clear idea of the end from the beginning long before you undertake your project. This entails knowing the bigger picture and the specific overall goal relating to the desired haven. Once that is done, you proceed to simulate your proposed strategies thereby generating different case scenarios. Contingent on the possible outcomes, you provide for any worst-case scenario. Develop plan A and B Closely connected to the earlier point, always have a back up strategy that automatically roams to life once the initial primary strategy falters on the business high seas. This back up strategy should be equally good and
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guarantee success what ever betide. Many people pay heavily for want of this back up because to their bitter discovery, all the eggs will have broken with the first strategy. The author remembers the bitter and difficult years after he failed 1st year University. As a result of having been one track minded, he kept hovering around the same hill for many years lamenting over spilt milk before he realised and made head way. Unfortunately, some of his colleagues in similar dire straits never recovered. It is good to be single minded about something but always provide for any eventuality. Keep ear to the ground Always keep your antennas in tip top condition, it will help you a great deal. Different developments are constantly taking place and as such, you run the risk of operating on a wrong obsolete premise. Whereas your idea may have been perfect in its due time, it may not be so now. To keep abreast, establish powerful networks and aggressively look for the latest, relevant information that can put you ahead of everyone else. Successful companies do not thrive primarily on the financial muscle but the right, relevant and timorous information. Never operate as a stand-alone entity. You need to network. Orbit in the right network circle One killer instinct that business mavericks possess is the ability to hover around the right people and get what they want. They “log on” to these networks at will with a specific goal at the back of their minds and aggressively pursue it. Only then will they rest and settle for a normal relaxed friendship. In other words, they make the most of every opportunity that passes by. Sadly, serious networking is rarely pursued by many people even in this dynamic advanced cutting edge technological age. For instance, the internet is an enormously powerful tool for networks linking people all over the globe in near real time. Many use e-mail merely for greetings and comments on current affairs. Rarely do people use this tool for strategic ends. In addition and interestingly so, a large chunk of the critical real time information is not on the net but with individuals! Hence the need to develop potent avenues to tap into relational contracts. The most common is having formal or informal business chats where the agent visits strategic rendezvous such as pubs, hotels and social gatherings with a specific aim to link up with others. Principally that is good, but ensure you are always hooked to at least one main “server” where information exchange freely takes place. This socalled main server rests on mutual trust. Develop a “sounding” technique 180
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The “sounding technique” refers to appropriate methods used to test something and thus get an indicator in relation to something. For instance, if you want to find out how well versed some one is about a particular subject, deliberately pose a simple but key question. Depending on their response, you have an idea what they are made out of. Similarly, the sounding technique entails sending a message thereby interpreting the status by the echo received. You need to “test the waters” to see whether it is the correct time to make a move. Good strategists combine the sounding technique with intuition and thus able to decipher a lot of issues out of a few sentences spoken by some one. Critical thinking also blends well with this technique. In the Bible, Gideon used a fleece to sound out what God thought about a particular matter (Judges 6:36-40) and thus proceeded based on the indicator. Be flexible but single minded The right degree of flexibility eludes many. Either they are too rigid or too flexible to effect any meaningful impact. Flexibility entails being able to listen to others, consider what they say and change accordingly in the light of unfolding facts and truths in relation to your area of interest. This does not mean you bend unnecessarily but do it if it will objectively help further your cause. It is prudent to state also that in as much as we are to be flexible, we must have a proper blend of firmness, settled resolve, determination and focus. All these are summed up in two words-single minded. Being single minded is different from being one track minded. In the former, you have virgin devotion to a cause and exert all your energies to achieve the objective while in the latter, you are a closed system, detached from reality and rigidly stick to your guns regardless of what comes along. Granted, situations differ and by that token demand different flexibility leverages. Have a clear sense of history in relation to the present scenario “Not to know what has happened in the past is always to remain child” says Houghton’s book “Sketches from Church history”∈. This is true because the present scenario is the off shoot of the past. Thus, if you have the historical aspects neatly and conveniently tacked away at the back of your mind, chances are that you will turn out to be an excellent strategist. The reason is simple, you will be able to read the times and know what the times demand. History is a good reference point and by that token, the present will neither be mysterious nor dangerously slippery for you. We lived in Mongu for ∈
Sketches from Church History, S.M Houghton, introduction, pp 8
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many years having grown up in the greater city of Lusaka. More than ten years passed before we got back and by that time, many parameters had radically changed. Without much ado, we soon adjusted and got back into “city life system”. Our anchor was in the right place. One lesson however we learnt was that if one had not lived in Lusaka before, they often experienced more serious adjustment problems than we did. They encountered some level of instability and in some instances made shipwreck of them selves while we quickly got back onto the rails and moved on. The difference is because of the historical perceptions relating to city psychology which rope many initially fail to tangle. Thus, knowing your past, present and future goals helps you walk confidently today. Interpret the present in light of the future and vice versa! Closely connected to the previous point, the future is built upon the present. If you are deeply involved in designing the future today, you will most likely be tomorrows’ champion. As such, always interpret the future from the present stand point, in that way you will develop a strategic thinking mindset, long range in nature. Anticipate future trends and begin to act now Proactivity means being able to correctly position your self as a result of anticipating certain future trends. If you strategically think long term, you are likely to begin acting now to achieve your desired goal. If you do not set stretch goals, you will remain stagnant and won’t even know it! Long-term thinking does the job. Never short circuit the “natural laws” and mind those business ethics! Where ever you go and what ever you do, always know that certain unwritten rules apply. Just as we do not physically see the forces of nature such as gravity, natural laws dictate how far we go and what we achieve. Stephen Covey speaks well in his book “Principle centred leadership” when he asserts that you short-circuit the natural laws at your own peril. This universally applies whether in the home, office, church, and the business world at large. In addition, always have an eye on the local context ethics and effectively use them to advance your cause. Retain an ever-learning posture Always maintain an open mindset, never assume or be one track minded, keep the focus though. Learning organisations go very far because they absorb new innovations and ideas like a sponge. More than that, regardless 182
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of the idea source whether Shangombo, New York, Timbukutu or Beijing, they adopt, internalise and develop the winning team. The idea quality not source is the sticking point. That explains why open compared to closed systems constantly develop new ways of doing things. They are a fountain and oasis of new innovations, as it were. For instance the Americans have always led the way in the space industry. Sending manned flights seems to be their peculiar strength for now, costing many millions of taxpayer dollars per individual who travels outer space. In the event another super power arises, it could achieve the same feats at half the costs. If America (i.e. USA) remains obstinately stubborn stuck to its old winning ways, it runs the risk of going bankrupt in the long run. The best and easiest way is to learn from others and improve on or refine their technology. That is what has made the Japanese a force to reckon with. China is fast catching up. Maintain the learning curve to improve on your present status. Maintain a lean and fluid structure that can easily mutate. The Nineteen nineties offered a lot of valuable lessons for the Zambian scene because many business winds blew through many entities, fracturing myriads in the process. The weak and frail ones collapsed while the agile, flexible, responsive and learning organisations rose from strength to strength. Some failed due to the stiff competition while others went under for political reasons. That said, ensure that the organisation minimizes the number of roadblocks such as bureaucracy, obesity, red tape, rigidity and any other vice that would hinder timorous response to the times. The flatter and leaner the structure, the better. Internalise your organisational policies and ethics. As a result of a poor reading culture, many individuals and organisations only revert to their policies in times of trouble. But that ought not to be. These policies need to be imbibed and internalised because that is the organisation “Bible” from which all practices are derived. The best way to inculcate the policies into people’s corporate life is to repeatedly collectively and frequently review these documents. Make it mandatory reading at the entry point or find some way to get feed back on how people are learning. One Operations Director once surprised the top ranking officials in a certain NGO. He asked them whether they knew what was contained in the policies and which ones existed. The answers he got were stunning! Ignorance of the highest order was exhibited. Apart from policies, the ethics area needs revisiting repeatedly. Ethics have to do with the perceived right or wrong practices in a given context. For instance, courting and marrying a fellow 183
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employee in the organisation is viewed unethical in some companies while in others, that is perfectly fine. Know what your organisation stands for and draw the right ethical lines consistent with your profession. The former World Bank President and girl friend saga comes to mind (Paul Wolfowitz & Shaha Riza, 2007) In the case of the company, internalise the corporate culture e.g. team work, quality etc Companies largely rise or fall depending on their corporate culture. If it is a bureaucratic, red tape kind of arrangement, sooner or later, the walls curve in as the entity breaks apart. If it is too fluid, jellyfish like, pulling in all sorts of directions, it will always be operating in a reactionary mode. The best-run companies like the Zambian Airways tick because of team work, high quality and good harmonious corporate culture where the customer reigns supreme. Successful companies have exploited their core competencies, internalised good corporate practices and remain constantly learning. Absence of this accounts for the many companies falling through the cracks. Sell your ideas well and in good time so that your team can buy in. Excellent shared visions out live the vision carrier. If they are not shared and people do not buy into them, no matter how lofty the strategy, they will die when the people with the passion leave the centre stage. There is need to share your ideas, solicit support, additional input to further refine your thoughts. In short, contagiously market your ideas well so that the others run with the ball further than you would have possibly imagined. World Vision International has grown far beyond the initiator’s wildest dreams, long after Bob Pierce has left the centre stage. I once interacted with a Pastor who had wonderful progressive long-term ideas to prosper the local Church work. He had all the grand plans neatly tacked away in the catacombs of his brain and grumbled at why congregants constantly attacked him when he meant well. Noticing the blind spot, I asked him whether he had taken time to share his strategic vision with the other church members. He had not, hence the antagonism. Surprisingly, my initial questions startled him, wondering why he needed to share his brilliant plans since he was the appointed sole vision carrier and leader. Thankfully, he saw the point and has since implemented the ideas with tremendous success. This scenario repeatedly shows up in revival times as well and probably explains why the revival fires subside as soon as the star figure(s) leave the life podium. Take the Great Evangelical Awakening that took America by storm in the 1740s for example. As long as Jonathan Edwards & eloquent George Whitefield were alive, the fires rose 184
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higher but as soon as they were promoted to glory, the awakening embers were also soon snuffed out. In contrast consider the second Great Awakening of between 1792-1808, many players were involved with almost no popular & prominent individual towering above others. As a result of the “team work” and shared vision, the revival effects lasted to as late as the 1830s as J.F Thornbury∨ rightly suggests. Long after the initial God sent actors had been gathered to their fathers, the rekindled fires continued to blaze. We need to imbibe this lesson in all walks of life if our work is to last beyond us. Create room for brain storming fermentation Brainstorm sessions are aimed at generating as many ideas and consensus as possible over a given subject of discussion. Ideally, the activity takes an informal tone where people lay aside all their credentials, status, titles or position to engage in constructive discussions. All sorts of ideas are admitted, accepted, listed down and later on refined. Identical idea strands are grouped while the totally irrelevant are wisely discarded. Necessary care is taken not to spurn any idea as people’s fragile egos can easily be injured in the process while those whose ideas have been adopted feel too proud. A typical brain storming session has the following features: 1. Conducive roomy venue 2. A cordial and informal atmosphere. 3. A recording facility, usually a flip chart and markers. 4. An absence of status politics, all labels laid aside. Sadly, many proposed brainstorming session fail to achieve their intended objectives as people carry around their ego airs, forcing the already timid remain in their “safe zone” trenches. Break the status and departmental walls≡ One of the notable things a maverick like Jack Welch is well known for in his hey days at GEC is the radical demolishing of the long established invisible departmental walls and silos that tend to divide operatives. Jack believed that these walls, imagined or actual, needed to come tumbling down, akin to the Biblical crumbling walls of Jericho (Joshua 7). These Berlin-like walls, though initially well intended, have turned out to be serious stumbling blocks and eventually boxed people from each other. The ∨
God sent Revival, John Thornbury, Evangelical Press, pp 21,22 General Electric Corporation (GEC) is famous for having demolished the imaginary departmental walls allowing people to freely interact. Refer to “The Jack Welch Way.” Modern organizations have open rate halls where colleagues freely interact e.g the Zambia State Insurance Corporation 1990/91 and other brokering firms.
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idea is to facilitate free information and ideas flow among colleagues as well as cultivate an open friendly environment where no one hoards critical data that would move the organisation forward. The present scenario leaves much to be desired as people glory in imaginary silos and always seek to protect their turf and domain. It is therefore hardly startling when a colleague takes off with their office keys as s/he ventures out of town to attend to some business for three weeks! In the mean time, work stalls as the office literally grinds to a halt and is a “no go area”. Unless the nature of the office is highly sensitive such as the Accounts department, I do not see why others cannot have access to the office. Where these walls have been demolished, there you observe a community culture where people trust, depend on and pull together. They instinctively know their team mates intend well and will adequately cover up where things seem to be falling short. Mutual trust is key. Ensure you vigorously break down the invisible barriers in your organisation without fearing the repercussions. Do a lot of things together as a team, have fun and together celebrate success. David Beckham once lamented how he missed his former team, the Manchester United, back home as compared to the star studded Real Madrid. One of the laments he mentioned worth noting is that at his former club, their lives intricately intertwined and blended way beyond the football pitch, no wonder the team scored success after success in that golden era. Similarly, if your team is to make headway, there is need to have a pervasive and holistic interest in each other’s welfare so you will intuitively be able to discern each other’s move, at nigh telepathic levels. Think proactively long term You need to have a clear vision of where you want to be in the future and then galvanise all your resources towards that end. To the extent you think you will go, to that extent you will. In other words, your dream either limits or makes you soar to the success skies. Your destiny is as big as your dream. I once visited the famous Shiwa Ngandu manor mansion built by the venerable late stalwart freedom fighter, Stewart Gore-Browne located at Chinsali. The mansion scarcely has an equal even in modern Zambia despite having been built in the 1930s! It is a magnificent structure, standing tall in the forest, practically cut off from the rest of the world and yet remains largely intact to date. Once there, one can’t help getting the feeling that the Refer to the Post newspaper of 26th October 2006
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original owner had a powerfully strategic vision long before any one ever dreamt of settling in that remote locality. Legend has it that even the famous Cha Cha Cha freedom fighters including Dr Kenneth Kaunda often sought refuge there during the liberation struggles. What really struck me was the rare ability Gore-Browne had to galvanise resources for the massive structure construction in that far flung area. It is now a famous tourist destination daily raking in millions of kwacha. I guess I will continue wondering until the Egyptian pyramid construction puzzle is resolved. Suffice it to say that Gore-Browne deserves a place among the legendary Zambian visionary greats. McIntyre throws a little more light about Stewart Gore-Browne in the book “Zambia, the Bradt travel guide” pages 278/79.
Author’s thrilling visit to the magnificent Shiwa house, May 1998 Effectively exploit SWOT analysis The major pitfall for many people and entities is that they do not know what they are about, intend to do or where they hope to go. To make matters worse, many more do not know their limitations and special unique abilities that would carry the day for them. One of the potent ways of maximizing yield is to develop a thorough self knowledge and then determine when or how to proceed. The eagle flies in the highest orbs where other birds cannot fly and thus has a broader view. In a similar fashion, elect to fly in the highest orbit where your competitors cannot reach.
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For a long time, this author did not know his peculiar strength and thus wasted many valuable years doing a thousand and one things he thought he was equally good at doing. Thankfully, he discovered in good time to potently effect a major mental paradigm shift to success. What SWOT analysis is SWOT analysis is a technique used by any one who wants to objectively acquire an intelligent self-understanding. Based on the findings, they make appropriate adjustments for better, efficient, effective and realistic results. The acronym “SWOT” refers to external and internal entity factors impacting on and influencing the organisational performance. Generally, strengths and weaknesses are internal and controllable. Thus, they must be identified exactly so that the organisation takes a realistic path in keeping with its prowess. On the other hand, opportunities and threats are external and beyond the organisations’ control. They originate from outside the entity hemming in on it and causing the firm to react, failure to which spells doom. By that token, the threats and opportunities must be handled with due diligence, care and timeliness or else the Titanic disaster will recur in modern times, long after 1912. Thus, the entire package of influencing and determining factors must be held in tandem for higher dividend yield. Why SWOT analysis? The question that obviously begs answering by any rational mind is why bother about SWOT? It is true that we live in radically different dispensations, locations and settings, but with the globalisation advent, many parameters are increasingly becoming homogeneous. As a result, if one is to keep afloat in this hostile competitive business climate, they have no option 188
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but to take stock of themselves and, as it were, “Count their men” as to whether they are equal to the tasks that confront them. The wise man in the Biblical Proverbs∫ wisely advises that one must first check and know the condition of their sheep/flock before they relax. Further, it is only prudent to know your abilities, limitations and success chances before you venture upon any undertaking. In other words, SWOT analysis gives room for any entity to have a realistic view of them selves so that they appropriately position themselves in the market place, life or war as the case might be. For instance, Zambia and Zambians have by and large remained paupers for many generations for want of knowing themselves. Most of them have no clue that they posses something unique they can successfully exploit to hurl them to higher ground. Though the country is richly endowed with many resources, Zambians do not know or care when and what to settle for as the core competence, if they even realise the importance at all. If the leaders knew better, Zambia would be an entirely different nation altogether. As at now, it is not really clear what competitive advantage and core competence Zambia has, whether it is mining, tourism, manufacturing or simply trading. Thus, an objective SWOT analysis allows an entity to accurately identify what they truly are and focus on the right things. It is said that most of the successful countries and companies know their unique strength and thus cut a niche for themselves. The earlier this is established, the better. But again, in Africa, you can never be too sure, the successive Governments could deliberately be twisting things so that they continue to plunder and remain in power! We proceed to look in detail at each of the constituent elements of the acronym “SWOT” a. Strengths In dealing with the strengths, the starting point is to carry an objective self evaluation with a view to come up with an honest self estimation. The determination of ones’ strength is both with respect to competitors and ones’ internal ability. The entity in question must first of all find out what they are intrinsically strong at and able to do with the greatest ease. This is the inward strength. Usually, the entity itself is able to tell this and confirms when it compares with others.
∫
Proverbs 27:23
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The second area is to identify the entity’s outward strength. In other words, the organisation observes and crystallizes what it is strong at doing. To do this, a number of tools are used such as determining the efficiency or cost aspects. If an entity is able to manufacture a quality product more cheaply and efficiently than the neighbour organisation, then that could be its outward strength. Another strength could be the brand name. Some brands intimidate others and give undue advantage to the possessors. For instance, where Coca Cola is on sale, generally other drinks recede into the background. A further strength could be the financial, the market coverage, distribution channel, the target clientele, human resource or the high quality output. As a way of emphasis, the organisation must identify its internal and external strengths known as core competencies. The fact that an organisation is able to produce certain goods or services is not good enough. It needs to determine whether there are others in the industry that can equally do the same but at a more cost effective and higher quality level. Once established, the organisation decides whether it is cheaper to make or simply buy. The firm may even resort to outsourcing certain services or goods as the case might be. For instance, in the late nineties, the RPS bus was by far the most potent bus fleet on the Western province route but when the CR bus appeared on the scene around 2000, the RPS was suddenly left in the shadows. For a time, it put up a brave fight though but in the subsequent years, it decided to pull out of the golden Mongu route. What was at play? The RPS discovered that the CR had a competitive edge and core competence to superiorly handle the golden route. The prudent thing therefore was to withdraw and concentrate on another route or diversify the business. Core competencies can be stretched to the area of manufacturing as well. If two organisations are into producing washing powder for the same market, chances are that there will be fierce competition in the first few years. In subsequent years, one of them might either change the target group or fold up. The reason is that one has more expertise in the trade, spends lower overheads in churning out high quality products or soon reaches the optimum economies of scale. Another aspect worth considering is comparative advantage. The organisation may have absolute advantage in a number of areas far outstripping the rest but then it deliberately elects to focus on one area in which it seems to have higher returns and better competencies. This view has been propagated by the renowned economist David Ricardo in his monumental work “Principles of political economy” of
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1817±. Ricardo submitted that it made more economic sense to only produce goods that an entity was able to produce most efficiently and then buy the other goods from other suppliers. Other areas of strength include the quality area. As earlier alluded to, timeliness, right pricing, good supply chain, aggressive internal and external marketing are critical success factors. In a nut shell, an organisation that has mastered the product and marketing mix very well will eventually carry the day. But more than that, it must have the right team players on board that carry the ball to the goal mouth and beyond. In the service industry, Gordon Henderson tells of how the Giro bank improved its profits by leaps and bounds when TQM was imbibed⁄. This can still happen though the bar is higher now. We pause to consider the Mongu route scenario alluded to above to cement our thoughts further:
The race to Mongu bus route superiority At one time a trip to Mongu was the most dreadful of journeys to undertake. Not only was the journey long, strenuous and sweaty, but also it was one that a person had to physically, psychologically and emotionally prepare for long before hand. The road was as bad as the vehicles that would be used. A single one-way trip would take no less than three days! As though that were not bad enough, the route was serviced by one fleet of state owned infamous United Bus Company (UBZ) buses!ι Today, the picture is completely different, as one can manage to travel to and from Mongu in a single day! How so different a scenario! What has caused this and what has been the impact? As you might be aware, the number of buses servicing this route on a daily basis has increased from one to over four! When the UBZ folded in 1994, shortly after the liberalization of the economy, other transporters sprouted and started to service the selfsame route though they were more unreliable and unpredictable than the UBZ that to some extent had guaranteed departure and arrival times. As these initial transporters took on the route, a bus popularly known as Time bus or JR came on the scene. This proved to be more agile, comparatively ±
Charles W. L Hill International business pp 145 Banking World, December 1992, pp 26 ι The UBZ & Zambia Airways closed in 1994. See the Southern African Economist Magazine of Feb/Mar 1995 pp23. ⁄
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customer friendly and had more capacity. This move caused others to fizzle out, as they could not compete. But just when JR was becoming the established route leader, the RPS made a sudden appearance on the horizon, this time even more efficient than JR! There were reported fights and violent instances between the rivals. In no time, RPS robbed the market though JR still remained a formidable force, in the peripherals. RPS then became the upper class market bus while JR serviced the poorer sort of travellers. As a result of the near monopoly on the route, RPS became too comfortable, complacent, obstinate and less customer focused. There were instances when the RPS crew would violently hound out or insult customers and still get away with it. Alas, in 2000, CR smelt the profit on the golden Mongu route and was irresistibly drawn into the race. As expected, CR arrived with a bang and momentarily shook the RPS not a little as the said fleet had not expected any other competitor. CR came with robust modern marketing strategies that completely out witted RPS. Some of the weapons exploited were introducing a customer friendly service and at times even offer drinks or fruits free of charge! Another avenue was the introduction of good quality, timely buses fitted with Video/TV. This was too good for an average Mongu bound bus by then!! In addition, the service ensured all the buses were never overloaded and initially begun with a lower price so as to capture the market. In no time, customers shifted allegiance enmass. Soon, the anticipated funeral procession to the bus graveyard for the once potent RPS and JR was imminent, though they lingered around a little longer than expected. As providence would have it, in 2001 after reigning unrivalled on the route for over a year, Euro Africa heard about the fame and richness of the western province route and joined the race. Determined not to be out done, the Euro Africa employed similar strategies that CR had used except that they emphasized on timeliness on all routes. This has worked well and potentially dislodged the undisputed Mongu route heavy weight championCR. For a season, the incumbents were paralysed because they were in the same market niche with Euro. JR still limped along but better than the other two as it serviced the poorer sort who would be packed like sardines on the buses, with luggage littered all over the place including the passage way. Progressively, the battle raged hotter as the buses used all sorts of strategies that included different departure times. For instance, some now start off as 192
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early as 04:00 in the morning and arrive at their destinations at about 10hrs and then make a return trip at 14 hrs, all in a quest to get that extra buck! Thus, the battle for route superiority rages on as other bus services like Juldan, Shalom, Jermins, Zoom etc join the race, one wonders who will ultimately carry the day, let us keenly watch…
In whatever business line the entity pursues, it needs to strengthen its image by providing high quality but cheap goods that the customers want, need and can afford. Image building centres around the brand name, whether it is national, international or global and appropriate strategies crafted as such. If you use a national marketing strategy in a global context, it might backfire or not appeal to today’s customer. For a number of years, Coca Cola disappeared from the Zambian shelves until 1990/91 but still, its brand name continued to echo in the Zambian’s minds. Two things helped keep this brand alive: Quality and proper global marketing strategies that still bombarded the Zambians’ minds. Quality is non negotiable. When the tables turned for the better, Coca Cola soon flooded the thirsty Zambian market. The good thing is that the products were readily available, at the right price, timely supplied, and an excellent customer focused distribution system. This far outstripped the lethargic parastatals. International marketing in detail is beyond the scope of this book but in case you would like to read further on this important subject, refer to my other book let “A hand book for the international marketer” so that you acquire a bird’s eye view of the subject. Strengths ought to be exploited to the full because they are the ones that determine whether you win or lose. The earlier the strength is discovered, the better. That explains why some nations perform better than others despite their natural resource dearth. Japan comes to mind. It hardly has any tangible natural resources yet its strength relies on high quality cost effective production and delivery while Zambia, with all its abundant resources is baptized into poverty. Early identify your strength and potently use it to get to the higher orbs. The World Bank believes that agriculture and tourism are the ultimate saviours for Zambia as it mutates into a diversified economy away from its traditional walking stick-mining.
Refer to the August 2004 Development Zambia magazine pp 13 in the article “No turning back as world Bank calls for a ‘break with the past’, a good analysis in many senses
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ILO What is Zambia’s distinctive competence? So much then for the strength, we hasten to look at second letter in our acronym, “W” for weaknesses that are internal as well. To a certain extent, you can also consider the opponents’ weaknesses but this will be dealt with in a separate place. We primarily focus on the inward incumbent frailties. b. Weaknesses When an organisation is struggling and performing badly in a given area, it is high time to check itself and rectify the problem. If fixing proves impossible, then the organisation has a peculiar weak spot in that area. Weakness has to do with a feeble and infirm ability to do or perform a certain function. In other words, this is a militating besetting encumbrance that weighs or pulls you down. In this regard, an entity has some inefficiencies and inertia when performing a certain procedure, product or service. Further, if other competitors are able to successfully do something better, then that is their comparative or even absolute advantage. But if it fails or struggles to get something done, then that is a weakness. Akin to strengths, weaknesses are internal which could possibly be completely eradicated, mitigated or barely minimised. These scathing weaknesses could include People management. If people, the most valuable assets of the organisation are not well catered for, they soon flee to other more humane organisations that meet their aspirations. Weaknesses in this area include a large power distance, impersonal relations,
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dysfunctional teams, antagonistic environment, poor conditions of service, no capacity building prospects, narrow career progression hopes among many things that people check for before they fully commit themselves to the organisation. If these vices are not promptly addressed and an external opening avails itself, they swiftly fly away, carrying with them some guarded/trade secrets, ideas, skill, competencies and efficiencies. Sometimes, they even join rival companies that later demolish all your wellcrafted strategies. Apart from the weak HR record, the other weak spot could be in the quality area. Some companies are notorious for poor quality products and services for which they suffer a backlash when a superior quality supplier comes to town. There is usually reactive panic in camp. Poor quality turns out more expensive in the long run and can take your company to the grave. Check for your weaknesses in that area and drastically improve them via modern TQM techniques that systematically and systemically build quality. In that way, you will be around for a long time to come. Quality should pervade all you do, whether services, customer care, management style, product pricing etc must be of the highest quality, cost effective and user friendly. In Zambia, the worst enemies to corporate progress are sometimes the managers themselves. Instead of fostering teamwork, animating, cordial enabling environments, raising the mutual trust levels, these folk break down the very things they would support. Terrible things such as nepotism, tribalism, inconsistency, ignorance, obstinacy, bigotry, trickery, corruption, inappropriate relationships with the opposite sex are the order of the day in some management circles. Depending on the context, these negative traits weaken good corporate cultures as well as injure the organisation’s good image. In other contexts however, your private life has no bearing on the corporate image as long as you churn out what is expected. In coming days, it will increasingly become a critical prerequisite for any manager to have an intelligent appreciation of multiple disciplines such as marketing, financial and information management, operations as well as have a high team playing spirit, multi tasked, multi cultural skills, integrity, open mindset and goal focused. Specialised study is good but one needs to be broadminded in outlook to tick in the global work place. Surely, most of these weaknesses can be worked on and in some cases, eliminated. Never take on more than you can handle in terms of volume or complexity. Take only what you are fully competent in. Drucker has rightly observed when he states that it is foolish to take on more than you can handle. Opportunities 195
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An opportunity is a potential available chance to undertake an activity in due season. Note that opportunities come and go, are usually beyond the control of the organisation but found in the environment. As time swiftly flies by, opportunities show up and soon fly away depending on how they are treated. They are delicate and tender deserving maximum care and nurture lest they flee. These opportunities have certain characteristics such as time bound, one off, rare and a cost component attached. The latter attribute refers to the cost of deciding to undertake an activity or the mistake of not seizing one while it lasted. In economic, this is called the ‘opportunity cost’. I am often intrigued at how people with a trained business eye spot opportunity every where. At every turn, they see resources and wonder why the owners of those properties still wallow in the mud. A Swahili friend once remarked that he failed to understand why Zambians lived in abject poverty when they lived, walked and slept on so many riches. Zambia has a good climate, minerals, land, a good population and much more and yet seriously trapped in the poverty web. In short, he saw money at every pore. One has to train themselves to see so that when they open their eyes, they should visualise poverty defeated. Entities have to spot trends, and carefully position themselves in success’ path. SWOT helps you scan the environment for potential “handles” to success. Failure to grasp an opportunity in its due season results something similar to the write up below:
Redeeming the time I have met many people along life’s path who talk of their glowing past, how they went places, accomplished the impossible and left a blazing trail that scarcely any living mortal, past or present, can equal to apart from themselves. They harbour fondest memories of their illustrious past, with their eyes sparkling as they recall the irretrievable hey days, long faded away beyond reach. Half the time, their stories seem larger than life but they are true! Often, as they have told their powerful testimonies, it left my mouth watering as I have exclaimed more than once saying “wow!,” totally spell bound. For a moment, I wished we could switch places but as I returned to my trenches, I have often begun to reflect as I chewed the cud while asking countless questions. Oftentimes what has triggered those thoughts has been 196
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when I have noticed some inconsistency or looked at the present status of legendary storytellers, some how, they have seemed to be struggling over the mundane things of life. Perhaps they were recovering from a mighty personal economic recession or some unseen calamity. Be that as it may, by all counts, many of them are no doubt accomplished men and women of valour whose track records few can equal unto. This was particularly true of many pre and post independence heroes, valiant sons and daughters of mother Zambia. In one breathe, and rightly so, they were patriotic, nationalistic and loyal to their country but in another, they failed to see beyond their momentary favourable circumstances. Despite all their colourful personal history, hyper globe trotting, wealthy and rich past experience, they often did not own a house, or let alone a car! (A serious status symbol in Zambia as at 2006)Where did all the dollars they fondly talked about vanish to as they traversed the world? (Bemba: Ifyalo ifya lekana lekana)
They flew around the globe often Where did they miss the mark? Often times, the answer is soon unveiled, they rested on their laurels and lost the strategic eye. They thought and lived for the moment and never envisioned any turbulence in their careers or life after retirement but alas, the rude, harsh and sad life realities showed up after a flawless and distinguished life time service to their institutions. During the years of relentless hard work, things in the environment radically changed while they hardly took note, too busy with their instutionalised careers. As such, when they retired or left the established system, they felt rejected and could not survive long outside the established system walls to which many had become dependant. Others received their rude shock when their contracts were suddenly curtailed midway or declared redundant. As a result, they perished in their thousands due to depression and other related afflictions. In one sense, we are all children of our generations in the way we perceive things, but surely, one could have peered into the future and foreseen potential danger or turbulent times ahead. The Bible talks about a prudent person seeing danger from afar and taking refuge (Proverbs 22:3) but sadly, many do not take heed to these admonishing words. In an ideal situation, people should be hewn from the dependence syndrome rock, 197
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resolve to independently solidly stand on their own with a view to help the weak and the up coming young stars. This entails forecasting, planning, dreaming and proactively taking steps to ensure that the rainy day does not catch one unawares. For example, one should discover their talent and inclination while still young, perfect it over the years, acquire tertiary education, begin working (formally or not), while focussing on first things first. The said first things could include completion of studies, making a mark on the industry (working life), build or buy at least a house, marry and raise a family while investing into the future such as running a personal private firm by the side which eventually becomes the mainstay after running the full course in the corporate world or where ever providence places one. In fact, if one elects to be formally employed, they must resolve from day one that the work is but a stepping stone to higher ground. They go in full throttle, garner all the experience, clout and then move on to work independently. Gone are the days when our parents spent their entire productive lives working for one company, putting all their eggs as it were, in one basket until the boat goes down the drain, to the sea bed along with all their dreams, aspirations, plans, hopes, health, esteem and inactivated strategies. But surely, why cling on to this imperfect man made ship?∧ I am sure the more than one thousand people that survived the Titanic tragedy of 1912 abandoned the Herculean sinking ship and sought refuge in the lifeboats, but did they need to reach that stage, if the captain had heeded the several warnings prior to and during the daring maiden voyage? Many people wait for a titanic ship like carnage before they act retroactively, often too late in many instances. They run aground upon life’s rocks but if they had been strategic, they could have averted all disaster by skilfully steering the ship among the shallow rocky waters to safety. Life must be viewed like a project that needs to be managed within its time frame, from the cradle to the grave. When things seem cosy, stable and nice, beware, danger lurks at every turn. It may appear invisible for a time, but though it tarry, it will surely come, hence the need to constantly meticulously read the times. In fact, times of apparent prosperity ought to be times of serious preparation. It is time to store away in barns in readiness for the lean years ahead, much like Joseph of old (Genesis 41). Contrary to that principle, many blow up their chances and walk away empty handed, stranded and disillusioned (I am referring to honest hard workers in this book, not crooks and plunderers). The said good people could not see ∧
Refer to Ecclesiastes 5:13,14. Wealth and cash flow easily develop wings and fly away unless caged or harnessed in the day of opportunity, beyond that, the wings will be too strong for the feeble chains ripping them apart!
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Elijah’s small cloud gathering over the horizon (I kings 17:1). The other folly with many working or business Zambians is that they procrastinate in many critical issues and hope to do everything in one evening! That is not possible, remember that Rome was not built in a day, as the saying goes. By the same token, it is impossible to fatten and extract quality pork chops from a pig in a single day. For instance, to build a future, one has to make headway by small progressive steady strides, with the little that is gathered along the way. Never wait for the uncertain lump some money such as pension. These grow wings and fly away! As another saying goes, “the longest journey begins with a step”⇓ and achieved by many successive, progressive steps. Monies like pension must be viewed as monies for holiday making, travelling etc instead of being used for capital projects or sponsoring this or the other to some expensive school. We need to change our paradigm so that we do first things first to enable us to relax in future. How lovely it would be for one to exit life’s orbit with a triumphant shout having accomplished the life mission par excellence. It is prudent to anticipate, predict the changing seasons of life and strategically position one self in view of what might ensue. In that way, life will not be always a continuous storm or full of surprises, rather, you will be in charge of your destiny. I wonder, what route have you taken? In grasping an opportunity, a number of over arching factors must be meticulously observed as given in the ensuing paragraphs: The legal The legal environment refers to the laws that have been enacted by Parliament which govern the country. These laws are binding to all that operate in that particular context and apply regardless of where one hails from. By that token then, it is critical to know the “do’s and don’ts” to avoid needless litigation leading to gradual business loss as the case might be. Ideally, the laws are an expression of what the people’s aspirations are as enacted by the people’s representatives in the persons of Members of Parliament (MPs). As to whether these people actually articulate the feelings of the masses is highly doubtful in Zambia but be that as it may, the law provides that the legislative making process is entirely entrusted to these few select men and women to the exclusion of boys and girls. If the extant laws are palatable and favourable, take advantage of them and maximise your lot. If not, wait and watch. If possible, lobby by proxy or directly so that the ⇓
Anonymous
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archaic or inhibitive laws are amended to portray the current global scenario. For example, lobby for the changing of archaic fishing laws at the Lake Kariba currently only favouring the elite and foreign nationals. Sadly, sometimes it is not only the laws but mindsets that need changing. The government policy Each successive government comes with its own policy and will obviously legislate what is in keeping their development philosophy. If nationalisation is their goal, they will ensure all policies are in keeping with that. If pure capitalism (though rare) is their goal, all policies will be in line with their desire. Policies are simply rules, frameworks and laws set up to guide and safeguard national interest so that resources are maximised to the benefit of a wider section of a given community. In other words, policies influence strategy, work relations, direction and how institutions relate one to the other. As such, if the organisation is to fare successfully in a given context, it must know the Government policy on different issues long before hand and how to handle these once on the ground. That is why it is prudent to have some national staff in any international or global entity because these know the local rules of the game like the back of their hand. Further, these also chart the course on how to go round certain hurdles such as tax avoidance, rebates and incentives that accrue to DFI. Any thing has to do with Government and connected to politics in Africa, it must be cautiously handled as the separation between these two is extremely thin, if not non-existent. For example, what is the type of local government, how do new NGOs get to work in an area? For a number of years, the Zambian government has been toying around with introducing an NGO coordination bill. Objectively, this bill will enable government regulate and coordinate all NGOs that have infested the Zambian landscape. Unfortunately, in Zambia “coordination” is interpreted as “control, dictate, force or compel”. Fears are that Government will abuse this to clamp down on even genuine NGO’s leading to serious interference. The new NGO must weigh carefully consider before investing in any district, for this bill could both be a threat or opportunity. The cultural context It goes without saying that cultural knowledge is crucial if one is going to successfully market. What is Culture? We can safely say that these are the accepted norms of practice among a local people. Each group of people has it’s own code of conduct from which it judges things. Usually, Culture is not 200
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written but inscribed on people’s hearts and minds. Thus, Culture is relative and may not be the same in all the places. The Cultural aspect has various elements that must be addressed before venturing into a given market: 1. The Language – the language must be mastered so that negotiation is made easier. Generally people loosen up their guards and relax when they realize that you have made an effort to know their language. 2. Material /technological – this has to do with the level of technological and material advancements of people and how they view change in terms of the fast changing world. The manager must be aware of the pace in order to plan well. 3. Social Institutions – Social organizations, Education, Political structures all these border on human relations and activities. a. Humans & the Universe (religion etc) – Each culture has certain things that influence their view of the world. One of the major influences is religion. b. Aesthetics (Folklore, Music etc) – This refers to the arts, the music and all the cultural ceremonies that affect the people in their setting. In Zambia, we think of the Umutoboko or Kuomboka ceremonies among many others. The strategist must have “Factual Knowledge” as well as “interpretive knowledge” of a culture if are to excel. S/he must also possess cultural sensitivity & tolerance of the varying shades of culture and nuances that are salient in each unique culture. This calls for an anthropologist to decipher, which the marketer should be. An anthropologist is one who studies human behaviour, reaction as well as the impact the environment has on his/her habits. Always remember that the marketer’s task is to introduce a new product on the market. Three possible reactions result when marketing internationally. The first is resistance because something is new and strange. The second is outright rejection because something does not relate to the culture. The third is acceptance because the product is viewed as useful and palatable. On the American continent, there is a mixture of cultures and this must be taken into account when attempting to market. The services of a cultural translator are critical as s/he is one who knows more than factual translation but interpretive as well as insight into the cues, and nuances of a culture. As the business penetrates a market, a change takes place in people’s minds due to the frequent adverts, which influence people’s tastes and attitudes by and by. For exmaple, in the early stages of the Mpika ADP, we experienced an interesting impasse where people used proverbs to communicate volumes. You needed to know and interpret these 201
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“Mapinda” to succeed. That explains why Mr Michael Sata loves proverbs. But we need to hasten to consider other equally critical factors. The religious At whatever point on this terrestrial ball, people hold on to one religion or the other. Some claim to be atheist, which in itself is some form of religion assuming that no supernatural being exists out there. Emanating from the in born belief systems or adopted along the way, people tend to have different perspectives about the worldview. For instance, what may be a non-issue with a Hindu may be for a Muslim and vice versa. By that token then, the religious environment cannot be ignored at all in strategic international business lest one loses their market. For instance, the western world believes in aggressive and sometimes offensive eye catching advertisements that may not sit well with the rest of the world. As a result of the foregoing, it is critical for the international strategist to ensure they factor all the relevant concerns so as to avoid sending wrong messages to their potential customers such a knowing the “dos and don’ts” in a given market segment, unless a global marketing strategy is being pursued. That said, the world is fast becoming homogenous in its tastes as the media takes its pervasive compelling information across the globe, thanks to the Information Technology revolution. Some of the renowned world religions include Judaism, Christianity, Islam, Buddhism, Confucius (though some contend that this is not a religion) and Hinduism among many others. All these have their strong belief systems and must be observed as one crafts their winning strategy. India is a country struggling to adjust to the global blizzards fostered by rapid globalisation. In an article, “Cultural bigotry rises as India sees social change”≠, Krittivas Mukherjee highlights the conflict brought about by the rapid social change and has raffled the waters across India. Globalisation once again remains a force to reckon with but the strategist must move with the times in crafting the appropriate strategy. Below is a map that attempts to highlight the concentrations of the various religions across the world (as at 2006):
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Reuters, Wednesday May 23, 2007
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The World’s religions On the Zambian scene, there are equally various religions and denominations predominant of them being Christianity although many other historically foreign and traditional sects have made in-roads. It would not be far from the truth to state that there is a renaissance especially in the traditional spiritism (some times referred to as African traditional beliefs). This means that as opposed to the past century when Christianity was by far the leading religion, a strategist must be mindful at crafting stage that other religions exist and exert a considerable significant influence on the market forces. This is so because since 1991, different people have settled in Zambia with different backgrounds and brought with them, varied traditions, cultures and habits. Thus, many, like in the West have caused religions to spread to other parts of the world by way of migration⊆ . It would be prudent to also state that within the Christian religion, akin to Islam, there are denominations though probably far too numerous compared to other religions (Denominations/doctrines etc). Some of the major denominations include the Roman Catholic, the Pentecostal, the Charismatic, the Methodist, the Baptist, the New Apostolic, the Seventh Day Adventists (SDA), the Reformed Church in Zambia (RCZ) as well as other sects such as the Jehovah’s witnesses (Famously called the ‘Watch tower’) and Spiritism (Mzimu). The following Zambian map below shows the denominational and religious distribution across the nation as at 2006∇ ⊆ ∇
As quoted from Mr Paul Mumba, 30th April 2006, Mongu Estimated
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Islam
Major denominations & religions in Zambia today The economic The economic climate dictates many things such as the road net work, infrastructure, level of development, rate of economic growth, and the cost of harnessing raw materials, distribution channel as well as the cost of doing/conducting business there. The inflation, tax regime and anticipated trade trends must also be explored to ensure that the organisation does not suffer terrible loss in the event of problems. For instance, Zambia is largely a trading country despite having vast natural resources yet to be tapped. With the lately opened economy, the following write up gives some insight of what Western province of Zambia has to offer:
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The Mongu scenario-Rice≈ and Fish⊗ In the early and late 1990’s whenever one announced that they were making a journey to Mongu, they would instantly raise eyebrows and queries as to why they dared and bothered to go there. The image then was that the west was the worst in terms of livelihood and activity. The place was perceived as full of nothing but sand and a desert climate. Little did they know that this once despised place is potentially the hub of Zambia’s prosperity because the place has far more than meets the eye. Today, one just needs to stand by the roadside and observe how many buses that stream into and out of Mongu day and night to see the increase in traffic. No less than three buses arrive and leave Mongu daily because of the newly discovered trade from this once despised place. What really caused such an attitude shift and sudden traffic upsurge to this place? With the human eye, it seems for many years the picture portrayed was that the natives are too sectarianistically conservative and a repulsive lot who jealously guarded their untapped natural resources regardless. At one time it was said of the place that if one did not know the Royal Lozi dialect, there was no chance of succeeding in the place. There may be a grain of truth in the accusations but the Lozi, like any other, value their culture and will do any and every thing to defend and promote it. As a matter of fact, they are actually a very friendly lot when given the due regard and if one sincerely shows that what they are interested in is not theirs but them. In that way, one will worm their way to success and comfort among these lovely people. That besides, as the throne changed hands, and as more and more people got exposed, the foretaste of the Bulozi beauty begun to radiate to the outside world. The first was the Fish then followed by rice, cashew nuts, meat and many other rare goodies. In fact, the sand is potentially excellent for glass making and other related activities. As such, people started to trickle to Mongu in the late nineties but today, this tiny trickle is now a flush flood. People literally pour in from all corners of the globe to have a taste of the rice, fish and mineral prospecting. These
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Although still a minor crop as at 1994 (only 7% of the total cultivated area), rice production has known an upswing since 1994 after World Vision and other developmental organizations undertook to promote it on a larger scale. Opportunities for Western province pp42 ⊗ According to research conducted in 1995 by Mulwanda and team, 333 tones is harvested every year from the lower Zambezi. Roughly 75 % is consumed locally while the rest is exported to Lusaka and beyondOpportunities for Western Province Maimbo, Huijsman, Mulwanda and Lof pp50
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people are all littered around Mongu and beyond and in some cases, business people actually camp in the areas of business! This is unprecedented. But what are the factors that have led to this four-fold increase? Many answers could be given but from a layman’s perspective, it is because people have suddenly awoken from the long slumber of considering Western province of no economic value. They have discovered among many things that the area produces world-class rice that is of at least four grades, Supa (the finest), Burma, Angola and Blue bonnet. This high quality rice competes favourably with the best brands on the World Market. In addition, it has been discovered that the Barotse plains have a potential of feeding the whole of central Africa with grain but for the land tenure politics that linger in the background.
Rice The other attractive feature about Western province is the reported presence of diamonds at Shangombo and the Zambezi river, the rumoured presence of Gold, oil, iron ore, copper and other relatively undisturbed natural resources such as timber, river sand, cashew nuts, mangoes, crocodile farming potential and patches of potential arable land. Cattle rearing is another industry the West boasts of and in fact, it was believed that at one time Western province had more lives stock than any other province. Tourist attractions such as the Sioma falls, the Liuwa and Siomangwezi National parks, the beautiful scenery and indeed the warm-hearted natives add value to the incredible profile of the Western province. The famously controversial Mongu-Kalabo road now under construction will open another route to Angola× and beyond. Now that war is ended, trade can begin in earnest. As ×
Incidentally, Angola is potentially the richest country in the SADC region but for the civil war that raged for over 24 years. Refer to Africa connexion International Magazine pp 23 Volume 9 second qtr 1994. This type of carnage has distorted the economy not only of Angola itself but other regional countries as well.
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such, Kalabo, with its potential Iron ore, oil, diamond, mine is slowly becoming a spot light. We hardly need to mention the planned road bridge at Katima Mulilo to link Namibia, Zambia and the Congo DRθ. All in all, the potential is great and only needs to be tapped. What are the fears? The obvious fear is the plunder that has ensued and continues to as people come and go out of the province with one single purpose, to profit. This is always done at the expense of the locals. For instance, Shangombo, a little district in the remote corner of the country was until recently hardly heard of but today, due to the “diamond rush”, the place harbours all sorts of characters lingering there! You will find people from all parts of the World, including prominent international business people there. All rank and file converge there. When asked, they simply reply, “There is potential business here!” Looking ahead, one anticipates more and more influx of business people flocking to Western Province and there by up lifting the Economic status of the town and province at large. Checks and balances must quickly be introduced to avoid further degradation and wanton plunder of the grand resources that Western Province is endowed with. The Politics and conflicting policies between the State and the Royal establishment must amicably and quickly resolve issues lest the area loses too much through plunder before it is realized. For instance, as at now, the Sesheke/ Senanga stretch can make one weep when they consider the wanton and unscrupulous destruction that has occurred on the forests in the last decade or so and that largely by foreigners! It is a rip off once again. These people take the rare high-grade timber across the Zambezi to build beautiful towns and cities, out of Zambian raw materials! An appeal to the powers that be is that remaining at daggers drawn will not curb the degrading anthropogenic activities. That not with standing, let us watch and see what lies in store for Mongu and the rest of the country as international trade makes its maiden voyage here wards. © Billy Sichone 2003 Threats and risks
The demise of terrorist leader Jonas Savimbi gives hope that the Kalabo road will be useful, apart from the long abandoned the Benguela railway. θ Refer to The Zambian Farmer Magazine Vol 3# 2 of April 1998 pp16, 17 as reprinted from the African review of business and Technology.
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“Never allow challenges and threats rule you, rather pro-actively manage them” BS Threats are factors that militate against our organisation as we attempt to achieve our objective. These are potential detractors that nibble away at our vitality and prospective success. They are some times called “challenges” in modern verbiage and have potential of pulling the entity down and are beyond the control of the organisation. In short, threats are external and impact the entity. Depending on the type, magnitude and direction of the threat, the organisation ought to count its capacities and adequately address these challenges. Usually, if not always, threats are reacted to by the organisation. By that token, entities react differently to these selfsame challenges. Some are sent into frightful panic frenzies, others react appropriately as things come up whilst others anticipate these challenges at planning stage and thus factor them into their strategies. This latter group hardly records any serious tremors. Thus, organisations and individuals must of necessity identify these threats, plan to mitigate the impact by various means, deflect them to others if possible so that the organisation has a head start while others are grappling with the menacing threats. The fact is that we cannot completely stop threats from assailing but they can be managed. To easily remember the threats at different levels, the “PEST” acronym has been coined by some strategists. P stands for Political, E for Economic, S for Social and T for threats. We add an extra “T” to the acronym to represent “Time” because it is of essence and determines the extent to which we succeed. Some of the threats encountered by organisation include the following: Government policy: Government policy regulates how business is done in a given country. Policies are frame works that guide practices. Depending on the extant laws, the policies may militate against or foster a certain course of action. If your business is going against the government policy grain, chances are that you will not go far or succeed. The government policies are enshrined in various documents especially the constitution. Thus, if the constitution forbids certain practices, curve your strategy in a suitable way that gives you a head start. For instance, until 2007, the Zambian laws favoured foreign investors, and still do as opposed to local indigenous investors. This means that if you are to do business, you are better off as a foreigner or one that has powerful links with outside investors. As can be seen, the government policy can be a threat or a comrade towards a given activity. 208
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Level of development: Some times, the level of development affects the way business is done. If the laws are fine, then the next head ache is the red tape, corruption, distribution channels, supply and quality chain, local orientation, the GDP & GNP as the case might be. If the population is small and a large majority live far below the poverty datum line, chances are that your business may not flourish much but if the critical mass are in the middle and upper classes, you may just hit some jack pot. That explains why many western countries are rushing to China and India today. A detailed discussion of the economics of the nations is beyond the scope of this book but suffice it to say that your success is closely linked to the over all level of development of a country. In another sense though, the seemingly “backward countries” offer the best growth potential for any entity because most of the resources and market remain untapped. Culture The culture of the people can be a threat or strength depending on which side of the coin your activity falls. If it cuts across the grain of the local values, practices and way of doing things, expect a revolt in one way or the other. However, if the activities flow with the grain, expect a pat on the back and much support. For instance, the HIV/AIDS fight has predominantly focussed on the use of condoms as a preventive measure against infection, presupposes that people cannot abstain. But recent revelations indicate that in places like Zambia, if you leave out the Faith Based Organisation (CBO), you will not register significant progress, why? Simply because religion is part of the Zambian culture! Once the church buys into your perspective, they will sound the clarion call to fight the pandemic and more lives will be saved by that token but not until then. Other areas that culture affects include the dress code, the tastes, perceptions, way of doing things, view of time and how the community structure is arranged. In the global context, many cultures are literary struggling for survival as they attempt to wad off the western culture invasion. India is one of the many examples of countries whose cultures have been bombarded and assailed by the western media. Remember Bollywoods’ Shilpa Shetty cheek kisses with Holly wood’s Richard Gere? What a stir it caused! Reuters’ Krittivas Mukherjee wrote an analytical article on 23rd May 2007 which accurately captured the cultural dynamics at play as a result of the lopsided development in India resulting from globalization. The post-modern mind sees no problem with certain practices like kissing in public while the traditional and conservative person 209
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is highly offended. Clearly, there is a generational clash dubbed “Generation X or Y” by some researchers. As a strategist, you must identify the issues related to the local psychology and culture weaving a powerful plan past those road blocks. Legal The type of legal system being used and the laws there of have a large bearing on the way business is conducted. In the event of disputes, how and what law are you going to use? How does that affect you as an individual? What about as the organisation? Some laws are realistic while others are absurd depending on what they are based or derived from. In addition, it also depends ones’ back ground, orientation or ideals in life. As a multinational, there always is a consistency challenge because what may be perfectly acceptable in the USA may not necessarily be in China, Iraq or India as the case may be. This pauses a threat on the entity and must be meticulously handled. The legal system position renders it difficult for a company that has its tentacles in various countries at one and the same time. The various legal systems that do exist are: 1. Code law/civil: derived from the ancient Roman empire. 2. English law (Common law): This was derived from the decisions that were passed in local courts set by the English King. This law is based on precedence. Consistency is thus maintained though challenging when it is the first case of its kind. 3. Islamic law: Based on and derived from the Koran. 4. Socialist law: Developed by Carl Marx who believed that all men should be equal and as such championed the socialist movement. All these are some of the hurdles that the multi country corporations have to contend with or encounter. Thus, companies must agree before hand which law is going to be used in settling any potential dispute. The following ways could be used to settle international disputes: 1. Arbitration- where two disputing parties agree on an impartial person to stand between and solve the problem without going into court. 2. Litigation- Simply having recourse to the law and settling the matter in court. This is the least desirable because it has complications such as which law to use and also dents the image of the warring parties. 3. Conciliation-a non-binding agreement where two disputing parties agree to ask a third party to mediate the differences. 210
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Market research is equally crucial in international business for information gathering prior to decision-making. Thus we can see that SWOT analysis opens up a whole new world of looking at things. If properly administered and utilised, it is an invaluable tool to get ahead especially if entities are open minded, honest and forward looking. It now remains for us to demonstrate the benefits of the SWOT processes and then hurtle along to the next level in our quest to build our impeccable world class strategies. Benefits of SWOT analysis That SWOT analysis has immense benefit is beyond question. To say that it is the universal panacea in the strategy galaxy would be a huge over statement too. It does have peculiarly helpful effects that have propelled myriads to the next level. As such, from what has already been discussed in the chapter so far, we summarise the SWOT benefits in the following points: 1. It helps identify the core competencies. The organisation is able to identify and objectively zero in on its unique endowment upon which it can capitalise to cost effectively reach its objectives. By that same token, it is also in a position to timeously make informed decisions whether to venture into something, outsource, make or buy. It also discovers its distinctive competence and ensures it thrives on that score. 2. It helps to focus on the core business. Organisations that have multiple competitive advantages run the risk of thinly and widely spreading their resources and thus reducing profit/success maximisation. After a SWOT analysis however, the organisation knows exactly the priority areas that keep the organisation afloat. By that token, it knows what areas to prune off so that it can become agile, lean, responsively efficient and effective. For example, in a bid to have a powerful corporate image and social responsibility, the ZCCM took on too much, and highly diversified to the extent that it had too much to handle. In the final analysis, it had too many cost centres than it could effectively handle. That, in part largely contributed to the death of that mammoth conglomerate. We can apply it to the worlds’ past and present declining empires. In Africa, the communal family arrangement contributes a great deal to the 211
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persistent poverty clutches. The meagre salary is already in tatters long before one gets to the bank with the government grabbing the largest chunk in tax terms. An entity that has developed a trained eye to focus on its core business will go a long way despite diversifying here and there. The core business is the business function that justifies the existence of an entity without which the firm has no basis for existence and must dissolve. For instance, World Vision’s core business is child support and development. Remove children and World Vision crumbles. Thus, in all its programming, the organisation has a special eye towards the child (core business). Strategy helps in identifying that core issue. Helps counter any potential and actual threats. With a clearer mind resulting from the SWOT, organisation is able to detect, anticipate and appropriately position itself long before trouble arrives. Further, the entity is able to easily identify a problem area and timeously rectify armed with the right information. Threats abound and rear their ugly green heads at every turn but the strategic eye spots things from afar and proactively repositions itself so that when the rainy day arrives, the storm is highly mitigated. Helps identify and strengthen the highlighted weak areas. The tool helps the entity to objectively face its inadequacies as well as identify areas needing improvement. The rough edges are smoothened, rectified, solidified and put to good use in the appropriate places. In a sense, SWOT stops people in their tracks and compels them to brutally, honestly count their armoury, as it were. SWOT is like a search light or mirror. Helps develop the perceptive eye. The author clearly recalls how strategic management studies opened up his mind to a totally new way of looking at things. Prior to that, he was a “jack of all trades” and prided in his excessive energy and multiple talents. However, It was not long before he realised that he was “every where but nowhere” when he came across SWOT analysis. There has been no turning back since. In similar light, organisations become learning and able to develop a rare intuition and perceptive eye into issues such as trends, tastes, environmental change implications and so on. Helps the organisation move in to the pro-active mode. In Africa, many of us suffer from a chronic procrastination disease 212
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where we spend half our lives reacting to situations. Indeed, there is no end to fire fighting exercises. However, most of the developed nations and successful individuals are extremely proactive thinkers. They anticipate trends, timeously respond to issues and constantly ensure that they are ahead of the pack. The top of the heap is their place. To be successful in this dynamic global village, you should ensure that you never pass through life merely reacting, instead chart the course! Stephen Covey, in his book “The Seven habits of highly effective people” has done an excellent work when he deals with the four quadrant theory. I have adopted his thinking model but modified and expanded the second quadrant as shown below: Modified quadrant II Not ideal 1. Reactive mode Always in a hurry and behind schedule. Characterized by panic, stress, hustle and bustle. Not self originated program but pace set by outside forces. Unpredictable and variable depending on what part of the season and calendar.
Ideal 4.Proactive mode This is the ideal place where the person perceives things from afar and strategically prepares for the “Rainy day”. When the actual event arrives, the person shows no panic or hustle. All they do is press the right button and the system roams to life churning out high quality out put and eventual outcome. 2.Responsive mode c. Anticipation mode This is when a person or entity The anticipation phase is when the develops a refined system that is able entity is able to read the writing on to respond in time to all queries or the wall long before others see and request. This entails having some strategically mutate to fit in with form of system where the desired what is to come. This is more than information, service or product is mere perception but goes further to easily generated, processed and made read the trends and to give strategic available in time for use. This fits futures in readiness for any well with the Just in time (JIT) eventuality. This includes the “Plan approach and best fits the fast food B” strategies that give room for rapid business etc. and sudden mutation This is good position but not the best. It is a progressive step towards the proactive and anticipation modes 213
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Circumstancial © Billy Sichone 2005
Strategic
7. Helps the organization know where to appropriately put weight and concentration. The SWOT process helps the organisation know exactly where it puts its eggs, when and how. The top management, to some extent, confidently make informed decision based on what obtains on the ground. Lack of that analysis may lead to misapplication of resources, wastage or missing the mark altogether. This explains why some entities have made serious business blunders that they live to regret as the past constantly haunts them. The Anglo American saga over the Zambian copper mines is a case in point≡. Although SWOT analysis is not 100% full proof, it does none the less contribute to the tangible good dividends eventually. 8. Helps avoid time and material wastage. Some countries and individuals are not necessarily poor, rather it is a question of misplaced priorities. As a result, many of the entities spend more than they should. It is not uncommon in Zambia to have multiple return jobs where billions of hard paid taxpayers’ monies have wastefully gone down the drain. Another wastage area has been the thoughtless and extravagant Indabas, illegal task force (2002-2007…) and still born commissions (Including NCC) that are politically motivated. Usually the President has no serious intention to implement the findings. The Mwanawasa regime has been a serious culprit on this. The reason has largely centred around legitimacy and self preservation, thus forcing the incumbent to persistently scrounge around for anything to consolidate one’s base rather than focus on long term development. Billions of taxpayers’ cash has been needlessly wasted by mindless antics. At one time, a wild party was hosted at State house where over K 2 billion was spent on beverages alone! Further, these countries sometimes enact harmful laws that they later live to regret. Before they realise and act, their countries, homes and pockets will have been ransacked. The hapless citizens watch powerlessly from the terraces. By the time remedial action is ≡
Refer to the mini case study in Appendix A
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taken, it is often too late. Still another case in point would be countries wasting time doing things that would better and cheaper be done by other nations with a clear absolute competitive advantage. It is worse if the nationals are a docile lot. Zambia is a clear example of such a state that teems with rich resources at every pore yet the natives remain desperately poor. The national laws support the foreign investor at the expense of the indigenous landowners. Right strategy helps foster prioritisation and proper resource allocation. 9. Minimizes environmental damage (i.e. Pollution, degradation etc) through Environmental Impact Assessments (EIA). A strategic eye has the long term development effects. In as much as development is plausible, desirable and good, it should not be pursued at the expense of future generations. Thus, development experts and environmentalists have coined a phrase “sustainable development” to support ecologically sound development. Where the strategic eye absent, there you see all sorts of wanton and crazy development ideas that degrade mother earth to the extent that it begins to suffer excruciating pain when the ozone layer depletion, with its attendant effects take their toll. We are now experiencing unprecedented rapid climatic change that includes erratic weather patterns, rise in the tide (probably from melting polar caps), fauna and flora extinction, fewer diversities and a host of other adverse effects as anthropogenic activities provoke the earths’ backlash to punishing abuse. We are yet to face the worst and sadly, indications are that the worst to be hit will be Africa, which comparatively pollutes very little when considered against the USA and other industrialised countries. On a positive note, Africa can engage in green business, preserving as much of nature’s gifts such as forests (oxygen machines), animals, and fresh undisturbed water bodies. The sad write up below makes the eco -sensitive person weep. It is but a tip in the iceberg. Sinda Bird Sanctuary, Chasa It once was a flourishing bird sanctuary, yea, a favourable dambo for countless migratory birds and people for many generations. Tourists from all over the world annually trekked to the rather remote and relatively 215
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undisturbed place in the heart of Eastern Province. All sorts of bird lovers drawn from different walks of life and ethnic groupings delightfully converged here to watch the magnificent birds crown the sanctuary and leave. Thus went the undisturbed ecosystem for generations. Then something tragic happened that has changed the once beautiful and bird teeming area for ever. An investor bought the land, drained the dambo and planted sugar cane oblivious of any repercussions his actions had on the ecosystem. No environmental impact assessment was done or at best, a cosmetic one was. Today, the place is dry, hollow, deserted and bereft of any sweet bird chirps or tweets that once beautified the place. One wonders where the birds now perch. Sadly, only grass and cane grows there as though this place never harboured a wealth of rich and rare diverse bird species. This mirage now remains in the distant painful past memory archives. The investor has made his money and does not care a whit. Had a strategic eye been consulted or available, the dambo’s fate would have been entirely different today. Millions of tourists would have continued to flock to this potential world wonder site but that has eluded Zambia once again! We have to content our selves with oral tradition as we tell our progeny, to our shame. I am sure the 1992 Rio summit definition of sustainable development has suffered serious set backs. The famous sustainable development definition and resolutions handed down to the world by the Maurice Strong led team has suffered many set backs due to egocentric anthropogenic activities. While others are debating the real definition of what sustainability really means, the world continues to be degraded. In fact American President is said to have once sarcastically quipped as follows: “The American way of life is not up for negotiation”∇. But then, we are all passengers on space ship Earth and therefore must collectively do all we can to preserve it for longer use yonder. At this rate, the Brundtland report dream of a “development which meets the needs of the present without compromising the ability of future generations to meet their own needs” is hurled out of the window by the wealthier nations! As can be seen, despising analysis does much injustice to all concerned. On the other hand, there are others who spend their entire lives analysing and ∇
as quotated by Simon Dresner in his landmark book, The principles of sustainability, pp39
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reacting instead of using the strategic information in hand to turbo themselves to the higher ground, far ahead of the rest. They suffer from what has come to be known as the “analysis paralysis fever”. I fear Zambia and Zambians suffer a great deal at the grisly hands of this potentially good tool. We are quick to analyse, and give a good, objective judgement but end there or restart the same process all over again. What is needed is active implementation based on the findings without fail, or else all is a waste of resources. Again, the 2002 National indaba of Zambia where billions were spent painfully comes to mind. We are yet to see the tangible fruits from that politically motivated activity. ====================================================== Bibliography Africa Recovery, “Africa strives to move from crisis to strategic thinking”, United Nations volume 9 # 3, November 1995 African Connexion International, Volume 9, Quarter 2, 1994, impala Publishers Apgar William, “Risk intelligence: Learning to manage what we don’t know”, Harvard Business School press, 2006 Brake Terence, Managing Globally, Dorling Kindersley, 2002, London, Munich, Delhi, New York and Melbourne Cateora R. Philip, International Marketing, 9th edition, 1996, Irwin McGrawHill, Boston, Massachusetts, Burr Ridge, Illinois, Dubuque, Iowa, Madison, Wisconsin New York, New York San Francisco, California St. Louis, Missouri Chitenje Elias, “Zambezi bridge will boost development in Western Zambia”, The Zambian Farmer, Volume 3 # 2, April 1998, pp16
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Cohen A. William, THE ART OF THE STRATEGIST: 10 essential principles for leading your company to victory, Magna Publishing co. Ltd, March 2006
Development Zambia, “No turning back as World Bank calls for a ‘break with the past”, Langmead & Baker Ltd, 2004 Dresner Simon, the principles of sustainability, Earthscan, 2007 printing Elmandjra Mahdi, “Long-term planning has lost ground, Africa Recovery magazine”, United Nations Volume 9 # 3, November 1995, pp12 Gilchrist John, Facing the Muslim challenge: A handbook of ChristianMuslim apologetics, Life Challenge Africa, 2002 Hampton J. Barbara, “To die for: The Satanic Verses this side of September 11- A review Essay”, Pro Rege, June 2005 pp1 Houghton S. M, SKETCHES FROM CHURCH HISTORY: An illustrated account of 20 centuries of Christ’s power, The Banner of Truth Trust, 1980 Kanyama Chibamba, “Business culture-Posterity”, Business Post, June 26, 2007 pp IV Katundu Liatto, Zambia 2025 on the Horizon, Africa Recovery magazine, Volume 9 # 3 November 1995 pp 18 Martin Walter, The Kingdom of Cults, Bethany house publishers, 1965, Minneapolis, Minnesota McIntyre Chris, Zambia: The Bradt travel guide, 2nd edition, Bradt Publicatiuons, USA, 1996 Oakland S. John, TQM: Text with cases, Butterworth-Heinemann; 3 edition (June 2003)
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O’Hara-Devereaux Mary & Johansen Robert, GLOBAL WORK: Bridging distance, culture & time, Jossey-Bass Publishers, 1994, San Francisco Sirleaf Johnson Ellen, “Africa must develop its own vision: Need to move beyond handling crises to strategic planning & management”, Africa Recovery magazine, united Nations Volume 9 # 3 November 1995 pp 3 Southern African economist magazine, Feb/Mar 1995 Steger B Manfred, Globalisation: A very short introduction, Oxford University press, 2003
Thornbury John. F, GOD SENT REVIVAL: The story of Asahel Nettleton and the second Great Awakening, Evangelical Press, 1977 Walsh D. Andrew, Religion, Economics, and Public Policy, CT: Praeger, Westport, 2000 Zambian Farmer, “Zambia should become breadbasket for Africa”, Zambia National Farmer’s Union, December 2006 Vol 9 3 12, pp 13
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Chapter Eleven
Men at work in Chief Kopa area, Mpika-Zambia May 2007 “Opportunity is often missed by most people because it comes dressed in overalls and looks like work” Thomas Edison Developing strategic instincts part II: Identifying opportunities Opportunities come and go every day of our lives. Depending on our alertness, we either seize or let them fly away for which we live to regret and pay heavily. An opportunity is a chance or a favourable season which an entity can utilise to improve its positioning in the world relative to others. Depending on what one is looking for, some thing may be an opportunity, threat or sheer waste of time. For the tennis player, a new tennis racquet is a tool for effective play but for the farmer, the same is either a fine weapon or of no consequence. A number of tips are offered in this chapter that may prove helpful to you in your quest to get to the top. Observe the following: 1. Meticulously watch the environmental changes When situations in the environment change such as mass job losses, regime change (government), policy, laws or disasters, it is time to reconsider our strategy. Although the latter example (disaster) is a crude one, yet it merits our close scrutiny as a potential window of opportunity. For instance, the advent of the HIV/AIDS crisis means people have and will die in their numbers unless there is a drastic behaviour change or a cure found. In the mean time, many types of people are affected leaving many yawning staff gaps. Professor Nkandu Luo for instance feels the worst is yet to come with respect to the AIDS scourge. This implies that the valuable able bodied professionals and lay people will die earlier thereby creating jobs opportunities for others. A potential human resource crisis in Zambia is imminent. One really hopes and prays that a cure is found like yesterday.
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Another crude example is natural disasters such as took place in Zambia in 2001 and created jobs for food relief workers although short lived. While some were laid off work at the end of the crisis, some gained expertise and clinched international jobs. The Tsunami and Katrina disasters have been a source of much pain but a window of opportunity too. In the Katrina case for instance, over 80% of the state was wrecked and needed to be rebuilt. Over 400,000 jobs were estimated lost as a result. Projections are that it will take a long time to rebuild New Orleans and other affected areas. According to Tom Raum’s article entitled “Hurricane Katrina erases job gains” (9th September 2005) it is said that “New Orleans would see one of the biggest construction booms that they have ever seen” This is a huge opportunity for some while an end to a traumatic episode for others. 2. Read the timesℜ Another avenue that can be used is to constantly read the context and what other players are doing. Note their deficiencies and chisel out a unique path to counter and outwit them. For instance, if the average traditional chicken trader offers their merchandise at the market place, you could go a step further by going door to door collecting orders from established institutions and individuals. Not all people have the time and leisure to visit the market and besides, half the time, the people who patronise the markets are either not in gainful formal employment or are merely assigned to buy specific things. The decision makers are locked away in the offices or doing business elsewhere. There is need to read the economic situation your lot falls into whether it is in a recession, depression, prosperity or decline stageψ. These factors definitely affect your corporate profitability. Other factors such as Gross Domestic Product (GDP) and Gross National Product (GNP) need to be considered. Gross Domestic Product refers to all the goods and services produced in a country by all people in a year’s period whether by the multinationals or natives. Gross National Product on the other hand, refers to all the products and services produced by a particular country’s ℜ Refer to Numbers 9 in the Bible to get a sense of reading the time, knowing when to move and when to be still. ψ Refer to the book “Business” by Pride, Hughes and Kapoor, 6th edition Houghton Mufflin company Boston, New York 1999, pp14, 15. This book has marvelous simplified business concepts, well researched and the authors seasoned.
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nationals/citizens regardless where they happen to be at a particular given time. For instance, a Zambian might be in the USA, Italy or India but still counted in the GNP computation. Find out also what the monetary and fiscal policies of that country might be. Monetary policy is the way money is produced to correct a situation such as money printing etc. Fiscal policy has to do with the expenditure patterns in order to control a situation. If too much deficits are accumulated, this constitutes the national debt. The Zambian government at the moment (2005) has a huge national debt because of many successive deficits such as the senseless budget overrun of 2002. 3. Build security around you Further still, another strategy is to start your own back yard income generating activity. Depending on the legality and by laws in your own location, you could start a small business by the side with a view to diversify or free some resources to other ventures when the small diversification becomes of age. Grow it as you raise your children and as they mature, so does the business. This works well at an individual level where a person can start a low cost business and grow it over time. As the business becomes self sustaining, it takes over some functions such as food security. The resources that would have otherwise been used for food will now be channelled to some other investment opportunities. This is opportunity cost. In Zambia, many a business fails partly because of the food insecurity that has clutched almost every one. In a nut shell then, identify an area that has not been fully exploited and invest some resources with a view to build security. The idea is that you select a yawning area thereby creating a unique niche. As a general rule, both at individual and corporate level, aim for security above comfort×. 4. Identify cheaper sources When a market is potentially saturated the competition is likely to be fierce. This can be dealt with in part by discovering a cheaper raw material source, suppliers or lower labour costs. Generally in the developed nations, labour costs are extremely high but in the developing nations, the trend is the reverse. There, the people are willing to work as long as they are able to extract some form of life support (food or cash). Not so in the developed world! They engage in all sorts of negotiations or turn to litigation in some cases. In fear of good will loss, many companies elect to settle issues outside court in a bid to save their image. As a result, many choose either to import, ×
As wisely advocated by Mr Kennedy Musonda
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out source or relocate the production centres to another cheaper site such as China, India or Africa where fellows desperately scrounge around for any available job. In keeping with this, the strategist locates cheaper sources, enters binding agreements and then introduces cheaper but high quality goods on the market. 5. Make or buy decisions Early in the business cycle, ensure the organisation determines whether it has the competitive, comparative and distinctive advantage. It has to make sure that it has the best resources, skills, competencies and efficient abilities to out do every one in the region. One of the major determining factors will obviously be the cost of production followed by market availability and then the quality which happens to be the silver bullet these days. If another firm produces the product equally easier, higher quality and more efficiently, then you may consider dropping the product line, diversify or simply join hands with them where possible. The prudent thing in such a circumstance may be to buy rather than make your own, unless the organisation has a vast profitable and certain market segment that they service with an established cultic brand loyalty. In the event that your enterprise is by far the superior producer of a given product and service, then it means that the firm has to continue efficiently producing and offering the products and services. The corporation must further consider scaling up its output so that larger economies of scales are reached eventually choking out the competitor in the long run by the cheaper, superior quality and readily available goods and services. 6. Take advantage of any market gaps The Post newspaper is now an established paper, far outstripping the traditional ones (Times of Zambia and Zambia Daily Mail). But a little over 15 years ago, (around 1990/91) no one would have imagined that this frail looking paper would dislodge the king dailies. Today, the Post towers far above many other papers on the continent as one of the best researched, accurate, liberal and progressive private papers. The question that begs answering is how this has been so. Reading the paper’s mission statement and moto, one soon notices that the Post has maximized on the yawning gap that existed at the time as relates to investigative journalism. The News papers as late as 1990 were nearly all state controlled except for a few notable ones such as the National mirror. All State controlled papers, towed the Government line, daring not address real or controversial issues. The Post came along and bashed this scenario with its hard hitting approach to 223
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reporting and brutal openness hitherto unknown on the Zambian scene. The pithy and candid editorials tore or built any one from an objective stand point. There was confusion in those earlier days but today, the Post is a serious opinion maker both nationally and abroad. Had it not spotted the gap and joined the regular Paper band wagon, chances are that it would not have lasted this far. The punch line is that you identify a yawning market gap probably one that every one is neglecting, avoiding or not seen and forcefully exploit it. For example, if “Chikanda” or ‘African polony’ is not seriously commercialised, improve on the quality in preparation and packaging as well as create a good door to door distribution net work in your town. Do not forget to patent your recipe so that no one hijacks it! You could rake in millions you know! Maheu is largely based on the famous traditional “Munkoyo” drink but refined, well packaged and patented. Today, the fellows are raking in billions from a drink that has been around for generations. Similarly, if you are to start up any line of business, you must develop a keen eagle’s eye that quickly identifies the gaps, conducts market research and hurtles along to grab the crack before anyone else does so. This calls for well developed intuition and business sense levels. That partly explains why many foreigners walk on to the Zambian soils reap billions of dollars and exit the orbit while the nationals wonder around, complaining all the way to the grave. You need to sharpen your skills! Another rather crude case relates to scholarships. Opportunities abound but one little thing often scares off star students: HIV test! Where there is such a requirement, better try, no matter how competitive. A friend with less than a diploma once clinched a high class international scholarship because the degree guys chickened out! The following write up based on the Post is instructive:
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The rise, progress and spread of the Zambian Post newspaper 19902007
For nearly 27 years, the Times of Zambia and Zambia Daily mail, both State run papers, although nationalised some time after independence, reigned supreme. They were by far the most potent government propaganda daily print media mouth pieces and to the extent they reported, to that extent most Zambians were informed. Their operations were extremely government regulated and dared never publish any iota of government critical news item. The key strategic positions such as Editor and above were to a large extent, political jobs. In terms of finances, the papers raked in millions although most of the times, the papers were inefficiently produced, of poor quality, highly subsidised and distributed to mainly government departments that probably never settled their accounts. As for competition, well, your guess is as good as mine, they competed between themselves in a cosmetic fashion! I guess they spent more time gossiping about pay rises and political promotions than strategising to competitively outwit each other on the market. Very few foreign publications were allowed, and if they did, one paid dearly to get a copy. The News week, Economist and Times magazines were about the only potent foreign publications worth talking about at the time but even then, most of the propagated ideas could not resonate with the average mind as the government controlled command economic and political system impeded outside contact and exposure. In any case, if anything was viewed as antagonistic to the State, heavy censoring ensued, if not the total banning of that particular issue. That is how things stood as at 1990. By all 225
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standards, the Times of Zambia and the Zambia Daily mail were national standard trend setters and appeared poised to maintain the superior market share given their extensive and complex national network, perhaps even beyond the borders of this country. But then something happened in 1991, from nowhere, a paper called the Weekly Post was born whose editor was Mr Fred Membe along side some prolific, racy, penetrating and piercing writers such as the late Jowie Mwiinga, atheistic Mercutio and the towering Bright Mwape, a first or second year Evelyn Hone College Journalism student at the time. The powerful Yuss dazzled the readers with his artistic caricature antics and later the quaint satire writer, Clarke. Never before had the Zambians ever experienced such stinging daring reporting. At the time, Dr Kaunda with his hench men were the prime target, and the major issue of the day, introduction of the multiparty politics. At first, the long established papers (Times and Daily) sneered at, mocked and ridiculed the puny back yard weekly publication that seemed to have been formed by a consortium of perceived disgruntled fellows with a little support from anywhere. What could they do? How could they dislodge such long standing and time tested papers with a powerful international profile? How could the half baked journalists possibly ever match up with the seasoned, experienced and ripe writers of the day? What about their distribution, coverage and regularity? What would these frail and perhaps diseased guys do, why waste their time and resources? So went the ridicule avalanche, similar to the taunting Nehemiah and company faced (Nehemiah 2-8) when rebuilding the Jerusalem walls. The Post was indeed bullet riddled and pelted from all angles at the time. The New paper idea appeared a sick joke and near lunacy at the time. As expected, the young but living paper experienced some initial operational set backs but as the stinging and revealing investigative reports begun to pour out, the world sat up straight, because a new force had hit the scene. Not a few eyebrows were raised as the once fragile looking paper begun to dig deeper whilst others desperately attempted to bury the trash. In no time, the titanic traditional and so-called “objective” papers begun to feel the heat of the potent and fearless Post editorials. Before long, litigation battles ensued raised by mostly high profile personalities in the country. It appears that they were traditionally accustomed to unquestioned filthy clandestine dealings and could not simply stomach criticism, akin to one stealing relish from a pot. In no time, the paper garnered sufficient clout and credibility among the national papers. The paper that dug deeper carried the spirit and aspirations of the people though it appeared rather too radical 226
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then, after nearly 27 years of State controlled media. As a result, the Weekly Post was verbally outlawed in many circles and not bought by the State. That did not cool the Post momentum. With time, The Weekly Post turned into The Post and confidently took its place among the daily newspaper stands, clearly out growing the rusty rest. Today, the paper is by far the foremost widely read Zambian paper both at home and abroad. Its daily hard copy circulation coverage of nearly 15,000± reaches the whole country, the Internet and gets to many outlets long before the Times or Daily Mail do. It has an efficient and effective distribution channel with a reliable transport fleet. Besides, the newspaper contents are worlds apart with the Post carrying the burning and current relevant issues of the day. The catchy headlines and punchy editorials make the paper stand apart from the rest. Further, the paper has been moving with the times and seems to have a finger on what the real issues are and what people want and are itching to hear. The Post has a way of exhuming and exposing dark corner secret bedroom meetings that countless times even catch the President by surprise. A few of those startling revelations have sometimes sent the man hysterical! One can’t help but think of what was said about the Prophet Elijah (2 Kings 6:12). Some times, the Post makes the alleged corruption infested government appear like a seriously dysfunctional information leaking vessel. Hence the endless skirmishes with the Presidential legal mind. But the Post has other unique attributes as it is full of innovations that are absent in the traditional papers. I suppose penetrating the “Kariba Dam wall” bureaucracy makes it a fruitless task to attempt change the ancient lethargic state papers, one is better off looking for and sipping away Zigolo⊂ all day. As an example of what I mean, the paper has continuously introduced powerful sections such as the Business Post, the feature articles, the Sangwapo (advertisements), the Saturday Educational Post, lifestyle, sports and the weekly personality profiles among many forward looking ideas. The paper consistently continues to improve but never losing sight of the original resolutions of being objective, profitable and candid. It is clear that the Post rakes in millions daily and is the trendsetter of the times on the newspaper market. The traditional papers are still clutched in the bureaucratic mode and are no match for the agile Post. The Daily Mail and Times are miles behind as though they never once commanded nearly 100% of the Zambian newspaper landscape. For instance, one can still find the Times and Mail on ±
As quoted from a reliable veteran source. The estimated volume for the state run papers is 12,000 (Times of Zambia) and 7,000 (Daily mail) down from 45,000 in the 70s and 80s! ⊂ Zigolo= A sugar saturated cold solution popular among boarding pupils and students.
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the streets as late as 15 hrs and selling at ridiculously slashed prices. The Post will have long run out, even in most of the smaller towns! Some times one wonders why waste tax paper’s money on papers that won’t sell but merely used for political propaganda and self-preservation. Another thing one notices when you encounter a Post and State Journalist is the difference in the attitude, diligence and motivational levels. A Post journalist will compass land and sea to get accurate fresh information. The others grumble all the way, are laissez faire and generally laid back unless there is some “motivation”! Why be bothered when they know that whether they report or not, whether the paper sells or not, the tax payer will still subsidize the company anyway! After all, their pay cheques are guaranteed. The Times and Daily papers have not awakened to the needs of the times. They need to review their strategy consistent with their fine and unequalled motos, if they have a strategy at all apart from reporting on globe trotting President, daughter and Queen or busy defending blatant clear irregularities! People will not always buy a paper like that! People are looking for credible tangible news, both local and international. Apart from the job advertisements and a few Internet downloaded news pieces, what do the papers have to offer? In fact, it is the advertisements that cause most of us to occasionally buy the papers. Perhaps, they should consider crafting a strategy that revolves around the advertisements, it could be a money spinner you know! Having said the above, there is need to mention a few perceived weaknesses and strengths of all the papers. In many senses, the Post leads in many areas of strength but sometimes is perceived too strong for the 27 year suppressed Zambian minds. Besides, our cultural norms do not as yet sufficiently appreciate some of the things promoted especially on the lifestyle section. Some of those reports are too extreme, nearly nude and offensive to a wider audience, though some consciences are becoming seared by the day with the Satellite TV advent. That explains why some political leaders bark out loud once hit under the belt. The Post should watch out what it promotes in the name of “modernism” or “Post-modernism”. In terms of candidness, by and large, it is doing a great job though this opinion is relative. Another caution though, watch out for potential new market entrants. It is true that many have come and wound up in the intermittent period but one may just manage to dislodge the paper that digs deeper in terms of sales, just like it (The Weekly Post) did in the early nineties! Continuously improve and build a powerful niche. Learn from the Zamtel that is being beaten by new comers like Celtel despite potentially having the widest network coverage. Today, 228
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Cell Z is trailing far behind Celtel, what more when mighty MTN settles? There will be entertaining drama! I suppose that is what a market economy is all about but take heed lest the Post also joins the other dead papers in the already crowded corporate bone yard. As for the Times and Daily Mail newspapers, a lot of lethargy, scrap metal and boxed thinking still needs to be hurled out. Sadly, these papers remain in the organisational coma surviving on the taxpayers’ life support system. They are actually a drain on the meagre national resources and not worth supporting unless privatised or let to run independently and professionally. If possible, these should be commercialised or spun off from state control. Away with the mediocre archaic politically infested management and puppet journalism! The times have changed therefore, it is high time to awake. Largely, the invisible political hand messes up these potent media entities. The same goes to the now frustrating ZNBC, State politics, politics all the way! We are tired of some faces! The Daily Mail and Times should urgently shrug off all impediments and give the Post newspaper a run. Perhaps one way to beat the competition and silence the Post is to commercialise one of the state papers into an independent tabloid or investigative paper akin to Uganda’s Monitor paper. It is a smash hit worth spending your cash on. But knowing African politics and politicians, that is a far fetched dream, perhaps unique to Museveni. That said, both papers need to improve on their reporting quality, especially their generally poorly researched and biased editorials. The language level is good enough given the target readership but there is need to polish up even there too. One hardly feels they are reading good standard English when their eyes are scanning these papers. The language level is rather too low for developed, broad and exposed minds. If the lower brackets (and they are in the majority, though most do not buy as they cannot afford!) of society are the target group, then well and good! The page size of the papers is needlessly too large, perhaps to accommodate more advertisements. To their credit though (Times and Daily), their advertisements are good and this is highly encouraged. There is variety and a good assortment. They get rid of the adverts at their own peril, though the papers need to add more innovative contemporary issues that will motivate almost every Zambian, old or young to walk across town to get a copy of the Times or Daily. I often find it intriguing when kids troop to my house on Saturdays to read the education Post, that is the way it should be! Others want to read Kalaki, Pastor Cholwe Mweetwa, Dr Canicius Miles Banda, Ms Lucy Muyoyeta, Dr Neo Simutanyi, Dr Simeo Siame, Dr Owen Sichone, Dr 229
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Judith Lungu, Mr Simon Kabanda, prolific Mr Chibamba Kanyama, Professor Fackson Banda , Professor Clive Chirwa and myriad other seasoned brain waves of our times. They do not only look for the adverts but far much more. That gives value for money. Well, as the dynamic newspaper landscape continues to mutate, let us sit back and meticulously but keenly observe what comes our way next. Will a paper greater than the Post arise soon? It presently seems not to the naked eye but let us not be too comfortable lest another dislodges all the present three leading papers of the day much like what the Post did back in 1991.
7. Never ignore a potential opportunity, read into things. When potential opportunities show up, never ignore but endeavour to trace and exploit them. Many have lost a life long jackpot that others swiftly grabbed and moved to higher orbs. Develop a trained sensitive eye that never lets any opportunity slip by. Frequent and bizarre lightening episodes may mean prosperity…. When I first set foot on Western province soils, I often wondered why the land reported frequent bizarre lightening episodes. Various views were advanced concerning this hair-raising phenomenon that included among many things, witchcraft. This was and remains the predominant belief. It is strengthened by the erratic selective targets that this lightening strikes. Most of these could be perceived enemy property, such as cattle, houses or relations. At other times, it could be foreigners who have imposed themselves on the land and regarded by the natives to be wanton plunderers of the natural resources. It is largely believed that these self same investors are suspected to reap far more than they plough back into the community, if at all they have the courtesy to do so. As a result, the natives send a cartoon like cloud with spurious lightening flashes that sort out the target. A case in point was one Program Manager who settled and worked in Kalabo (Popularly known as the “School of medicine” for its superior remedies and dosages second only to the Lukulu and Senanga west districts perhaps. Incidentally another powerful school of medicine exists in the northern parts of the country called the Kaputa district, no body dares that place and gets away unscathed! Verbal reports have it that an even more deadly and sophisticated school exists there). Without his knowledge or suspicion, he worked among the locals but they had a bone to chew with this 230
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“munyukunyuku” or “mungete” as they are known in other circles. One day, after a hard day’s work and while reclining on his large verandah, enjoying the cool evening breeze while it drizzled, lightening suddenly struck him! In a flash, he was hurled to the ceiling and came crushing to the ground, instantly passing out. When he next opened his eyes, he was in intensive care unit of the local district hospital. He could hardly recall what exactly happened as every thing happened too quickly. Thank fully, the man survived and lives a normal life to this day, though relocated to another part of this terrestrial ball. Events such as the one above have raised the superstitious profile and levels of Western province, and Kalabo in particular. But amidst all these apparently clandestine events where verifiable indicators do not exist, some have lived and worked in these places without much ado. In fact, they have worked incident free lives. What could be the explanation? Could it be that those people have lived by the unwritten local rules? Could it be that they have not detonated any land mine or lived circumspectly, meticulous not to inconvenience any one? Answers abound but a new school of thought is beginning to emerge. This school suggests two possible sources of lightening. The first is that the larger part of the western province landscape practically has few scanty trees and is generally low and flat. As per rule lightening largely targets the tallest object as its conductor to the earth. In that case, any thing that is in its path is a good earth wire system. That accounts for the countless number of humans and animals struck by the lightening, they are simply conductors by virtue of their towering height. The second explanation, and held by an increasing majority of the elite, is that a place that has vast amounts of minerals underneath is lightening prone. Due to the metallic nature of the minerals such as iron ore, their properties attract electrical charges. (Presently, it is widely believed that western province hoards the following resources, minerals and precious stones: Oil deposits to last many generations, diamonds to last at least a century and iron ore, all these are justifiable by reason of terrain and the belt upon which this province lies, stretching from the Congo DR, Angola, Namibia and Zimbabwe. By that token, lightening will have a high propensity to hit such areas and if any organism happens to be in that path, it is roasted as a result. If that proposition holds true, then it could mean that the western province is teeming with high-untapped mineral ores and therefore potentially filthy rich! The land tenure issue, federal politics and a continuously complaining 231
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but inactive cadre of natives combine to keep potential land of plenty in abject poverty and squalor. Only a select elite few benefit from these goodies. It is, as it were, the private preserve of the uniquely elite class. That said, no one is certain for sure at the present time as to the root cause of these sporadic lightening episodes but one cannot 100% rule out the super human origin of these bizarre occurrences. 8. Cultivate an entrepreneurial spirit. This is the desperate need of the times in Zambia. Observe how emptyhanded foreigners soon thrive on the Zambian soils while we do not, why? They are daring and focused risk takers and entrepreneurial. Michael Brett√ identifies an entrepreneurial spirit as a key success factor in this global world. Nigerians are serious risk takers and that explains why they apparently succeed. 9. Consider investing in the weightless economy (knowledge work). Professors Danny Quah (UK) & Ahmed Perez (India) have vigorously propagated over the years. Basically churn out ideas as opposed to the physical products. This physical products business (i.e. manufacturing, mining, trading etc) will continue in Africa for a while but we must consider skipping the production phase and specialise in knowledge work as an industry. Professor Clive Chirwa’s fertile mind competently articulates this idea. This will immensely help preserve the fragile earth’s environment in the third world and export ideas to the developed world. Kazhila Chinsembuℑ rightly points out that knowledge is the new currency for development. The sooner people realise this, the better the chances for success in the 21st century and beyond. 10. Never be at ease in Zion. Never reach a time where you feel completely safe and secure for if you do, take care lest you be outwitted. Strategists never feel satisfied with their latest schemes because they know the fragile nature of their plans. The military mind is always on red alert for any sudden ambush from the enemy. In similar fashion, count the high moments as preparation time
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Brett, Agents of change, Banking world, April 1992 Refer to Bivan Saluseki’s article “Living in the Diaspora: The story of Kazhila Chinsembu”, The Post. Sunday August 5 2007 pp XV.
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for the rainy day ahead which might strike any time. Its not a matter of whether but when. As an aspect of strategic instinct growth, we think it prudent for the global worker to have an intelligent hands-on grip of international marketing. The following section attempts to give a highlight on the crucial subject. International Marketing International business is taking different shades and is unavoidable today. This dynamic world is rapidly changing to the extent that it has been reduced to a “Global village”. This assertion is true in every sense because what happens in one part of the world has a rippling effect on some business transaction thousands of kilometres away. As such, it is critical to have the right people in the right places at the right time to lead and manage the global companies. We are now experiencing the early generations of global managers whose mettle is tested on international assignments, where they manage organisations with a diverse work force and perceive things in different ways due to the script inscribed on every soul. Strategy scan covers all aspects of the international manager albeit in a veiled form sometimes. People from different places look at one and the same issue and react differently. What may seem right to me may not necessarily be so to my neighbour due to our perceptions and values. As such, the International Marketer must be aware before hand that interpretations of similar events will vary significantly from place to place. This view of things is our Selfreference criterion (SRC)¬ In business, care must be taken not to react by SRC as various different customs; tastes and cultures exist in the international business. What exactly is International Marketing? It is defined variously but someone has defined it as “the performance of business activities that direct the flow of a country’s goods and services to consumers or users in more than one nation for a profit.” The profit motive is paramount. Now, international ¬
SRC refers to the way we view the world based on our back ground orientation, culture, attitudes etc. Shaw & Onkvisit do a more through job in their book “International Marketing” pp 260-261
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trade is a necessity if any 21st Century company is to survive. There certain key factors one has to note before venturing into a new market and these are the controllable factors (4 Ps, Product, Price, Promotion, and Place) and the uncontrollable factors such as the Political, Legal, and the cultural environment. There are 3 ways of Marketing: 1. Ethocentric where goods are produced for one domestic market but the goods go “International” as a “by the way” due to surplus. The Maheu brand comes to mind. Initially meant for the local Zambian market but is now a hit in the neighbouring countries such as Angola and Malawi. 2. Polycentric where subsidiaries are located in different countries and each operates almost independently in that they set up their own marketing strategies etc. 3. Regiocentric/ Geocentric where marketing is on a global scale. In the quest to penetrate and capture more market, the Marketer must develop a global awareness in him/her self as well as those s/he will work with. The orientation of International Marketing hinges on the ability to assess and adjust properly to impact strange environment. It also rests on the environmental approach to international strategic marketing that differs from domestic marketing that deals with one homogeneous market. The homogeneous market serves people with similar tastes, cultures and habits where as the international scene has to deal with multiple markets with various shades of taste and likes. The world has been reduced to a small place where transactions done in a remote place of the globe may have an effect on business in another part of the world. The trend today is that World Trade is going “Global” and as such, the Marketer should think globally. The World economy has gone through different cycles and phases. At one time, The USA Multinational corporations (MNC) reigned supreme and unrivalled. It is on record that the 20th century saw the world go into at least two economic depressions between the World wars. After the wars and eventual recovery of some poor economies, the USA & other countries started thinking “Global” in terms of trade. The weapons that had strategically fought the trade wars in the past were obsolete and to remain obstinate would have spelt total doom. We are into the era of interdependence, which in effect is the most dangerous stage. To curb abuse of power, various instruments were set in place to guarantee “free and fair trade” by different countries. An association was set up to monitor and ensure fairness in trade, and thus the first General Agreement 234
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on Tariffs & Trade (GATT) was set up and later (1994) the World Trade organisation (WTO). All countries that signed the GATT agreement were expected to adhere to the rules. The decision was arrived at because Member States used all manner of ways to protect their economies while expecting others to open up theirs. The following were some of the barriers to trade: 1. Protectionism: through (a) Unrealistic standards: where countries set unreasonably strict quality standards. (b) Tariffs: To protect the domestic infant industry from external competition, tariffs are imposed. (c) Quotas: When Governments impose restrictions as to the quantity of goods to be imported for a given period. (d) Voluntary export restraints (VER): where a country just decides out of its own free volition, to restrain exports in order to deal with a problem. (e) Boycott: where goods are not bought for a specific reason or to press a certain demand to be met. (f) Monetary barriers-Either by restricting access to forex or refusing foreign transactions like drafts. These protectionist stands have hindered much trade. When a country is in international trade, certain key indicators will tell whether the economy is growing or not. The following are the key indicators: 1.Balance of trade-“ a component of the balance of payments, the surplus or deficit that results from comparing a country’s expenditures, merchandise imports with the receipts derived from it’s merchandise” ℑ ‘The tabulation of a country’s credit and debit transactions with other countries and international institutions. These transactions are divided into two broad groups: Current account and capital account. The main items included are exports and imports and services (the balance of trade), foreign direct investments, intergovernmental loans, transfer payment, capital inflows and out flows, and changes in official gold holdings and foreign exchange reserves’ℵthe variance between the income and expenditure. 2.In the past, the poorer nations could not enter the International Trade scenario because of various adverse conditions such as war, poor infrastructure, weak currencies, and political instability. This caused ℑ ℵ
The Language of Trade: A glossary of International trade terms, p30. The language of trade: A glossary of International trade terms Page 30
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inflation to soar out of control. Thus, the IMF was set up to stabilize foreign exchange rates and establish freely convertible currencies. 3. Keiretsu- Found in Japan and are huge companies with numerous associating companies. In other words, one core company at the helm with hundreds of other associated companies like the Mitsubishi group (Involves 160 companies, of which 124 are listed the Tokyo stock exchange.). Each is entirely independent with its own board of Directors. Companies today are seeking longer and more stable relationships between vendor & supplier. The International marketer is confronted with many parameters before s/he ventures into a given market. A number of points must be borne in mind as one goes about work and among these is the knowledge of the factors that will influence the success of trade in that particular area. It is important to know the geography of a place and how it is likely to affect the effectiveness of trade. Some places are located in mountainous terrain while others are in valleys where there is little or no infrastructure to support trade. The international marketer must curve a route to overcome these hurdles and emerge profitable. On the other hand, the marketer must study the history of the place, the people, the culture, and how the topography has affected their perceptions of outside influence as well as how they do things. History will give clues as to why people behave in a particular way and how they have developed. In a nutshell, when about to embark on International Marketing, it is crucial to: 1. Know the Topography and climate of the World’s nations. 2. The History of the people as to why they have developed thus and why they react the way they do. 3. The Histories have affected international marketing, trade links/routes as well. 4. Environmental issues more than ever before are now paramount in today’s discussions of business. Issues such as waste disposal have taken the centre stage. 5. The World’s non-renewable resources are fast being depleted and must thus be carefully handled. 6. So far the United States has had the most powerful economy in the world and as such, has abused its competency sometimes. It is hardly surprising that the Monroe’s doctrine has been popularized in Panama. It states that “The west must keeps its hands off Latin America” referring to meddling Europe. In recent days, even the USA is loathed by South American neighbours such as Venezuela and Cuba (2006/07). 236
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Once the history and geography has been thoroughly imbibed, it is time to study the cultural dynamics, which is the topic of consideration in the subsequent book parts. Among other international shocks a person encounters is the amount of relativity of many things. As one ascends the international ladder, absolutes become less pronounced and among them is the view of things, which are clearly wrong in the one country as well as the corporate ethics. For instance, we note that people view time differently due to cultural orientation. The people from the Middle East and Asia are not really “time bound” i.e. time conscious whereas the people from the west are “Timebound” and really precise on time. In short, Monochromic time (M-time) are time bound and emphasise on time keeping, appointments and punctuality while Polychronic (P-time), are not time bound. A look at how the African is perceived in relation to time… African Time Reading through an article in the Post of Tuesday October 28, 2003 entitled “Can Africa Keep time?” set my mind thinking once again. I thought I should put pen to paper on this subject because I feel, to a larger extent than we realize, we fail to develop as a continent due to our attitude towards time. The article was drawn from a discussion on the BBC on how that the African is perceived as one who cannot keep time. This view has been strengthened by the recent happenings in the UK when a Ghanaian King arrived many hours late for a meeting, and I would imagine, saw nothing wrong with that. Indeed, from what I have read and observed over the years, I suppose this sad perception is true relative to our friends from the developed world. Generally, in Africa, we are laid back, not time conscious without any sense of urgency at all. All that matters is to see the sunrise and set. Many reasons can be given for this attitude but I hasten to give a few which immediately come to mind: Firstly, the average African mind set has not grown up with a watch and has moved with the changing lengths of the shadow. In other words, the angle of the sun relative to the horizon has been the determining factor. Thus, there has been no rush to do anything in a given period. Perhaps this explains why generally, as Africans, we do not see the sense of all the noise about time keeping. The question asked is, is the sun still up there? If yes, then why the rush? 237
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Secondly, the typical African mind largely moves by instinct not man made time frames. The appointment talk, meeting times and the rest of it are foreign to the African mind and are viewed as an inconvenience! Time must revolve around a person, not vice versa as obtains in the west. Thirdly, the recent world changes as we hurtle along towards the global village have caught the African by surprise. In the first place, the huge technological strides as well as the one world economic order have taken place away from the continent. These dynamic changes, though many have begun hemming in on the African continent. Before the Continent is liberated from the clutches of poverty, another thing has already evolved. The advent of IT1 is especially responsible for these rapid changes because decision-making is largely time bound as a result. As such, when a typical African sets foot on the Washington or London streets, it is all a whirlwind for him or her! As such, the African is perceived as “late” relative to the robust world. Fourthly, traditionally, what matters in the African mind is whether something is done or not. It does not matter when but whether. In other words, Africans are event driven not time bound. As opposed to the Western world that is a time slave, the African is liberated. Therefore, in the typical African setting, I would not be surprised to learn that words like “appointment or time keeping” etc do not exist! Fifthly, the African is content with the status quo and is not in a mad rush to get things done at the expense of others. What matters in Africa are relations rather than things or material gain. The traditional, communal system has hitherto been more valued rather than the individualistic western culture. In the developed world, the question is often, “what can I gain out of this in the shortest possible time?” as opposed to the African who asks, “how can I better the lot of every one else?” Both these positions have their own positives and negatives. In other words, the African has no ambition beyond the communal good. The drive to achieve much self-gain in a short time is absent. It is worth noting that the idea of keeping time seems shocking to some from other circles too. They arrive at 09:30 hrs for work, scavenge around for “ma local bunzi”∠ with a two litre zigolo√ container to wash down the rocky stuff. After galloping that, they then borrow a newspaper that they read all morning and then knock off for lunch at 11:50 only to return at 16:35 hrs in time to knock off. Their actual work is secondary and 1
Information Technology These are ‘rock’ buns made out of flour and popular among pupils and students √ Zigolo=Saturated cold sugar solution usually loved by boarding pupils and students ∠
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appears to be an inconvenience! When asked to work under dead lines, two reactions are given: The one class endlessly offers assurances like it will be done within twenty minutes, when they actually mean twenty days! When the hour of reckoning arrives, you receive excuses as long as the great East road! In between, they will have spent all the time gossiping and debating on inconclusive less topics. The other set of people develops goose pimples and eyes widen like big marbles at the mention of a deadline. It looks like it is the worst trial ever encountered to be asked to work under a fixed time frame. They, as it were, feel like a chain has been fixed to their ankle because this or that deal will be disturbed at 10:30 hrs behind the FTJ institute of Democratic Governance building. They look so traumatized as though a concept from planet Mars has suddenly been introduced without warning or consent! Further more, they become pale, lose weight or blush, if ever a black person can. They are not accustomed to diligence. Thanks to the cell phone, it averts many a disaster. Having said the above, I venture to submit that the so-called time keeping problem is not limited to Africa alone, no! The Middle East and the rest of the eastern world have historically been the same as African, if not worse. According to what I have read and observed in some of these our friends, they are equally in the same pit, if we can call it thus. For instance, Philip R Coteora in his monumental work “International Marketing”, (pp 124-126, 9th edition), high lights a number of helpful insights. In that book, he states the different attitudes to time. For instance, he brings the idea to bear on the international traveller that one shock a person encounters is the amount of relativity of many things. As one ascends the international ladder, absolutes become less pronounced and among them is the view of things, which are clearly wrong in the one country as well as the corporate ethics. For instance, we note that people view the commodity “time” differently due to hind cultural orientation. The people from the Middle East and Asia are not really “time bound” i.e. time conscious whereas the people from the west are “Time-bound” and precise on time. In short, Monochromic time (M-time) are time bound and emphasise on time keeping, appointments and punctuality while Polychronic (P-time), are not time bound. Put differently, people in the Western world follow Monochromic time while those in the middle East and Asia polychromic time. It should be further noted that the typically time bound western business person is in for a shock if s/he went to the middle east hoping to complete business as per schedule. Then jet out of the country the next day having 239
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clinched an arms sale deal for instance because time is not treated as scarce a commodity as perceived by the westerner, unless of course they are dealing with highly exposed people. Having asserted the above let me hasten to deal with the merits and demerits of valuing time. The article asks the question, “Is poor time keeping Africa’s worst enemy?” I venture to think that the question is good and worth exploring by some other fertile mind. For now, let us centre our thoughts on advantages or disadvantages of keeping time. Advantages 1. When time is observed much more is achieved in a timorous and harmonious manner. There will be less frustrations and people will be progressive. Where time is kept, there you shall see more constructive informed decisions made there by leading to more legendary feats. With the advent of IT, decisions that once took a year can be made within minutes. How many developmental decisions will have been made in the same period in this Technological world? 2. There will be more development as opposed to what obtains in a nation like Zambia today. Politicians spend all their time bickering and wrestling power from each other rather than focusing on the way forward. While some are questioning those that got political office via a forged ID, others spend all their time scheming ways to hit the opponent under the belt. Meanwhile, time is ticking away and rests not. Granted, some degree of controversy is essential, but let us be mindful of time bane. 3. Individuals will achieve more both for their personal and corporate good. If one person for instance establishes a business empire at 27, this will spur others to do the same at a younger age. Thus, people will be focused and direct. As at now, procrastination cripples us BAD! 4. There will be less time wasting. People will spend less time idling away on Fantasy Island expecting manna to fall from the skies. As the case is in Africa to day, people spend more time on either entertainment or scavenging for food. In regard to entertainment, many now look to the western world with their 24 hours television stations via satellite. Children and even adults are addicted to the box (TV Screen) and fill their minds with many unhelpful things while the time swiftly flies by. Others are hooked to the Internet. I have nothing particularly against TV and the rest because in and of themselves, they 240
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are actually helpful, but I raise my finger in protest against the headless abuse of these or the lack of self-control. For instance, look at how much time individuals spend watching movies and then compare with the time they spend on research. The stark difference is as night and daylight! Very few visionaries determined to succeed or leave an indelible mark upon the sands of time are ever produced by the entertainment spirit alone. No wonder, Shakespeare of old is still quoted today, though he be dead over four hundred years! I am sure he valued time not a little. Next time you are tempted to while away time, remind yourself that Western world have already developed that is why they can afford to produce what you now consume. When will they have the privilege of consuming your products if you are forever glued to the screen like a zombie? There will be less trickery and corruption. I strongly believe if people are time conscious, to some extent, they will determine to do their best and will have not time engaging in corrupt behaviour and practice. Africa is infested with institutionalized corruption and I venture to challenge the world to consider taking this commodity “Time” more seriously. It will be less costly to raise our progeny. As things stand, many Africans do not see the urgency of working hard in a given time frame so as to be independent. They leave everything to fate and chance. It is not strange for instance to have 27 year olds still lodging with their parents!! Granted, the social settings are different and the African economies cannot absorb all those that would leave their parents/guardians, but when people are time conscious, they will venture to redeem the time and make the most of every opportunity. Businesses will blossom. One of the reasons why Africans do not succeed in business is this lack of time consciousness. They do not have the acumen, the urgency or the opportunistic sense that is all neatly bundled up in the commodity called “time”. The average African thinks some dark powers or evil forces militate against their success when in actual fact, the problem may be poor time management. Like St Paul of old once said, “The time is short” and that we must “Make the most of every opportunity” (I Corinthians 7:29; Ephesians 5:15,16, Holy Bible), we must be as wise as serpents and yet as harmless as doves. The African has not grasped nor internalized that concept. There will be less time for gossip and slander. I hardly need to be labour this point. I believe that want of redeeming time explains why 241
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certain people have developed an attitude of pocking into others’ business without cause. They will not rest until they “down load” from the Local Gossip Area Network (LGAN). If people saw the shortness of time, they would be too busy being good time stewards than spend any time crushing this or the other’s reputation. I often marvel how neighbours know when you have had a sumptuous meal or when the home economy is suspect. They even know what capital item you intend to buy before you verbalize it! But what are the disadvantages of keeping time? It is hard to capture any demerits as most of the things related to good time keeping are positive. However, let us briefly state that time keeping, as perceived from the Developed world standpoint, has some demerits. The following general demerits come to mind before we consider the ones that directly affect strategy: 1. The world becomes more stressful when too much attention is given to time. 2. The World becomes the slave of time rather than vice versa. This is in keeping with what Christ said to those that attacked his disciples regarding the Sabbath day observance (Mark 2:27). I believe the socalled developed world is a hopeless slave to time. 3. The time madness is largely responsible for the breakdown of the natural African system. The western culture of time has squeezed into our vocabulary words such as “appointment”! Originally, Africans valued each other above all things but now, deadlines and all the rest of it have destroyed the natural union we once knew. Now what matters is TIME and not people. I am aware that in the Natural African setting, abuses were there such as time wasters and lazy slothful gluttons who patronized their hard working folks even at awkward hours, but this has robbed us of the quality time we spent with each other. These funny fellows move like “Target odourless” leaving you no room to take cover when you see them. They move like headless chickens, to summon some violent language from Prof J Kab or like misguided scud missiles. I fear that part of the high marriage failure rate and the increasing juvenile delinquency may be tied to too much attention given to other things as they appear more time bound relative to others. The effects? Children grow up like wild grass just under our noses! 4. Destroys families- People are too busy “sowing & reaping”. Promotes individualism. That explains why the developed world suffers from 242
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multiple psychological problems because Time has turned people into serious individualists thereby compromising the social psychosocial therapy extant in slower developing countries. There could be other reasons but those few will suffice for now. With respect to strategy directly, we suggest the following demerits: (i) Undue pressure sometimes forces quality compromise. As enterprises and individuals get bogged down with time frames, they inadvertently compromise the quality output of any activity. (ii) Sometimes time consciousness leads to wrong conclusions and wastage. Decisions are made on insufficient observations or inconclusive data all because time had not been aloud to ferment the observed target to the full. (iii) At other times, the strategies are not “context appropriate” leads to a wrong “strategy fit” especially in Africa & the East, may be misunderstood, “raffle the waters”, as it were. Time means different things to different contexts and thus affects strategy success rates. (iv) Business may become impersonal, material not customer focused. The modern customer would like to flex their muscles and show that they are in charge and sovereign on consumption choices. We now progress to explore the reasons why time must be kept and redeemed. It goes without saying that time once treated as a commodity will yield great reward. For instance, progressively, we shall see more children achieving more and growing up to be visionaries. I once read of a child that was on a PhD program at age 12!1 Aside from the Genetics talk, I think this child has really realized the importance of time. We must be good mangers of time always. The following reasons come to mind as to why time must be kept and redeemed: 1. Time is precious. Recall those days when essential commodities were scarce? Recall those long queues? Then a tablet of soap was like gold. Not so today.
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We should treasure time like in those days, it is a rare and scarce commodity. Once it is lost or trifled with, we will have ourselves to blame. 2. Time is irrecoverable. Once time is lost, it cannot be recovered. It is gone forever into the irretrievable past. It is archived as it were. If you mess around with time now, you are digging your own grave. In the end, it will be your master rather than the reverse. 3. The time is short. There are too many things to be achieved in this life in relation to the time allotted to us. Seventy or eighty, if we have the strength and we are gone! In fact, in Africa, the average life expectancy is around 37! As such, time must be treated more delicately. Already, I am beginning to feel like a grand father as I approach the mid thirties, how much more for those that are well over fifty. Look at the plans you have and then budget your time life, how much disposable time will be left? If you are discerning enough, you will agree with me that time is indeed in short supply. For the politician, time means a lot though sadly, they actually work a week before the elections! See how the road network has improved even in once remote places. Look at Lusaka and the Copper belt. In Mongu for instance, the roads were patched up in record time but now two years have passed after the elections, its all a forgotten story. Some times, I wish we had elections everyday, and then we can see all those monies stashed away in some foreign clandestine accounts summoned to build more roads! But then, the elections business is costly and some times generates more heat than development. The time is indeed short, redeem it! 4. What you become tomorrow depends on what you do with time now. Said differently, Time is a determining factor for the future outcomes. Africa is reaping the effects of having been asleep in the light. The world has never stopped spinning on its axis nor the moon around the earth, yet African has dared remain asleep! To get out of this mess, we must resolve to make the most of the Time NOW and then we can go on holiday the next day. Our time slave friends work extremely hard during the year and then rest real hard too when its leave time, why can’t we? Strategic Planning and acting are critical, methinks. 5. How you die largely depend on how you value time. If you trifled with time, it will like wise treat you the same. You will pass away like a fly. You will be buried in the corner of the world and forgotten, then grass will growing over your grave. If you are fortunate, a tombstone will be placed over your grave. The vast majority of us will be buried among the
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commoners because we did not value time. I venture to say that where you spend eternity depends on how you use time! Before we conclude the subject before us, how can we corporately and individually improve on time keeping? I do not have a magical answer but here are some of the tips from my experience: 1. Set your short and long-term goals clearly and begin to work towards them immediately. 2. Strategise on how to achieve the said goals. It would be helpful to break down your goals into smaller “packets” and monitor them periodically. In that way, you will watch your progress. Personally, I already have long and short-term plans on paper and live each year without much ado. 3. Set some benchmarks and indicators that will tell you whether you are on course timorously or not. 4. Keep a diary and plan it preferably a week in advance. Read books like Stephen Covey’s “Seven habits of highly effective people” and “Principle centred leadership”. These books once well read will help you. 5. Make time keeping a habit. This begins slowly and grows into a natural thing. Refuse to rest on your laurels or on what obtains ordinarily. The fact that every one is slothful does not make the thing right. Embarrass your team leader by arriving early all the time. Who knows, you may just encourage him/her to pull up their socks! 6. Budget your time wisely and pick only the most critical and value adding things. 7. Buy a good functional watch. This may seem silly but I mean it. Unfortunately, many have wristwatches but they are the worst timekeepers! Friends, those watches are not just merely ornaments, they have a function to help you keep time! I fear many of us have been cursed by our wrist watches countless times. Interestingly, others buy watches for pomp and show. Actually, some of those watches do not even work! They most probably were stolen from grand pa or from other weaker mortals… Well, well, well what shall we do at this stage? Only one thing, let us redeem the time that remains. Away with the lazy old mentality! We must and can do it! No longer will the west dub Africa the timeless continent! I fear, as FTJ of old once observed when he stood as prefect at Government offices entrances years ago, it is a question of attitude rather than primarily
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money. Rationalise as much as you like, the bottom line is attitude and lack of sense of destiny. Oh that Africa may arise! We can make it! Culture In a Low context culture, verbal interaction is explicit and easy to communicate and get down to business almost immediately. On the other hand, in a High context culture, prior interaction is implicit with too many rules and ‘ceremonies’ to be performed before you get to the issue at hand. We must go further to say that, in some cultures, presents and gifts are not only allowed but expected. However, the country of origin, certain practices such as tips are forbidden. The same company that has a presence in another country with the opposite view over tips, would find it difficult to do business. The following must be taken into consideration in international Marketing: (1) Cultural imperative-These are the non-negotiable in trade and must be known by those who are to venture into business in a foreign land. (2) Cultural adiophora-These are optional nuances, cues and modes of behaviour which could either be ignored or imbibed. One would not be ostracized for not grasping these practices. (3) Cultural exclusive-These are practices and ways that are strictly and exclusively for the natives which a foreigner dares not learn or copy as to do so will be viewed as an insult. As one continues to work in a foreign country, there are certain initiatives that they may employ and get away with as long as they are not arrested. Some of these could be subornation (where one pays someone to do the wrong thing that is not in line with his or her job) or Lubrication (Where tokens are given to encourage someone do their job more efficiently). Political Environment A marketer must take into account the political environment in which one intends to work because this variable is very critical in determining which way to go. By and large, the Political environment ranks among the highest variables before one gets bogged down with other ‘knitty gritties’ such as the culture and legal aspects. The following factors will influence international investment: 1. Stability of Government policies and how they will affect trade liberty. 246
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2. Number of Political parties and their Policies. 3. Nationalism, what the government policy is on international ownership of businesses. At some point, there was a drive by many governments to forcibly turn all multinational companies into the hands of the nationals. The Venezuela versus USA scenario comes to mind. This may not necessarily mean taking over title of the said companies but all the positions are taken over by the natives. There are a number of ways the government can react to international investors. The following are some of them: 1. Confiscation- This is where the government simply takes over without compensating the international investors. 2. Expropriation- Where there is a take over by the state but compensating the Investor for the loss incurred. 3. Domestication: Where all companies are Nationalised and become parastatals with the natives at the helm. This happened in Zambia after 1972, in 1981 in the case of the ZCCM. When venturing in a new market, a number of political risks must be expected such as: 1. Economic risks- How sound is the economy or will it collapse any time? Is it a sustainable one? Is it growing and can our business blossom in that setting? 2. Exchange controls-What exchange controls on cash are there? Are we going to be allowed to externalise our cash to our head office without much ado? In the case of Zambia around 1992, the liberalised exchange controls for a season brought about a spiralling effect raising inflation, frequent exchange rate fluctuations and other related issues. Thankfully, this has by and large been stabilised. The market forces determine the exchange rate not centrally determined by the government. 3. local content laws- What are the local content of law? How secure is our investment when we take it there? Is there any possibility of our losing our property? 4. Import restrictions- Are there political restrictions on what is to be imported and how much of it? Is there strict censuring or quotas imposed. 5. Tax controls-How high are the taxes on foreign goods? Are there any tax rebates, holidays, other concessions and for how long? In Zambia, Tax concessions given the multinational investors, especially the mining community has been a thorny but largely neglected issue. It is really absurd and one fails to understand why the slothfulness towards returning to the negotiating table. Why not implement the windfall tax i.e. if the price per ton of a good exceeds a certain ceiling, some tax is effected for the surplus. Another tax would be an environmental tax that compensates for the 247
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damaged unproductive land. Perhaps some one is getting some kick backs somewhere, hence the delay. Or could it be that the nation does not want to lose investor confidence? Probably. 6. Price controls-Are prices freely determined by the law of demand and supply or are they state controlled? These were prevalent in the pre-1991 Zambia but have now been replaced by Market economy principles i.e. Market forces as opposed to Government determined prices. 7. Labour problems-Is labour readily available? How cheap or expensive is it? 8. Sanctions- Are there any international pressures laid against the state? What type are they? Are our goods going to flow freely? In the past, Governments were hostile to foreign investors but in the last decade or so, the situation has changed. The following Strategies will lessen political risk: a. When entering a country, it may well mean that Joint ventures with the natives are entered into or b. Expanding the investment base by joining with banks who are owed a lot of cash by the Government so that the Government will be disarmed from wrecking havoc as they will be interested parties, for how can you bite the finger that feeds you? c. Marketing & Distribution- Ensuring that the company holds the controlling power over the distribution world wide so that should the Government cannot be “funny”, or else risk losing Market for their products too. d. Licensing-Intellectual property & Technology. This licensing limits usage and is for a specific period. It may be good to register the patent both within that country and abroad. Despite the elaborate laws, Zambia and Zambians doe not respect “intellectual property”. Perhaps our communal background accounts for this. In the developed world, this is a big issue because some one used their brain power to generate something and thus deserve to be remunerated. In addition, this also encourages creativity. e. Planned Domestication-This is a Systematic withdrawal because the Government is going to decree thus “any way”. Government-MNC relations are generally positive if certain conditions are voluntarily and naturally met. Some of these are: 1. Improves the balance of payments- The country benefits economically. 2. Uses locally produced resources-The use of local resources is preferred and encouraged as it is cheaper, creates employment and brings about development. 248
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3. Transfers capital and technology to the locals- Although the benefit may not be seen immediately, the process brings about transference of technology, and capital to the natives, as they earn and reinvest in their locality. 4. Creates Jobs- Unemployment is at its height so any initiative to create quality job opportunity is welcome. 5. Makes tax contributions- The government smiles if it can get something out of the multinationals. Sadly not possible in Zambia at the moment (2006/07) unless re-negotiation takes place. Instead of raking in Trillions, Zambia only earned K 35 Billion in 2006! What a loss!! Blunders in International Marketing International Marketing does have its own twisting curvatures upon which many marketers, no matter how seasoned, make serious ship wreck. Some quickly recover but others cause untold damage both to themselves and that of organisations. Among the many common blunders we have listed the following: 1. Brand name/image-re launch, brand life cycle etc. Some times, marketers fail to interpret the times, context and what their ultimate objective is. Being ignorant of the corporate strategy, they fall into the trap of crafting an illfitting strategy running across or against the grain. Instead of fostering goal congruence, they rip it apart, thus pulling in the opposite direction. As a result, the brand name is injured, stunted and not clearly defined in the customers’ mind. In an ideal situation, a brand name should hold all the corporate attributes in capsule form the absence of which spells doom. Not properly imbibing or clearly defining the corporate vision can also lead to serious mistakes in decision-making relating to the products and services. The life cycles, stage development, market research reports interpretation, diversification, disinvestment decision are all a gamble risking ultimate corporate demise. In international Marketing, you need to know much more things such as the cultural context, cues, unwritten rules and what resonate with the people or not. Based on those research results, a marketing strategy, local, international or global is developed that hits the bulls’ eye. Half the time, a national strategy is used in an international context and miserably fails to deliver. 2. Customer satisfaction. Apart from clearly defining your brand name, there is serious need to ensure that your customers are constantly and consistently 249
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satisfied. The fact that they were satisfied yesterday does not automatically mean they are today or tomorrow for that matter. Thus, a workable information tool must be designed that continuously captures relevant information about changing customer tastes and feeds into the marketing research data base for onward processing into new products and services. In real life however, such systems rarely exist for prolonged periods of time due to the cost factors. In the end, the organisation assumes that customer tastes remain stagnant for say five years when the global information machinery has worked wonders to change people’s perceptions, preferences and expenditure patterns in a space of three years. By the time the entity realises, people have moved on to something new and more exciting. Always remember that the customer is sovereign no matter which part of the terrestrial ball. The sooner you realise this, the better. Professor Fackson Banda had some interesting things to say about marketing communication and consumer satisfaction in a presentation to the Africa Management Communication (AMC) international’s 2007 annual conference held in Sandton, South Africa. It is a pithy write up worth ploughing through. 3. Market research. Successful marketing in general stands or falls on market research. If you do not have qualitative or quantitative data about a given context, you could be throwing pearls into a bottomless pit, for you have no telling what the issues are. If you are to be on target all the time, never over look market research as it will give you tangible information upon which to make informed decisions. Research is simply an enquiry into something, proving its validity on the touch stone of facts and figures. Many international marketers make the mistake to rely solely on qualitative data galvanised from interactions with their target segments but make no attempt to analyse this information quantitatively. Others veer to the opposite extreme where they ignore all qualitative data. This is a serious anomaly. The fact is that both fit on one side of the same coin, yea, as hand in glove. Many reasons are advanced for discarding or ignoring Market research especially the cost element. Sadly, many realise that real progress springs from compelling hard facts. As such, they go limping to the grave for having lost myriads of opportunities. 4. Continuous improvement (TQM) presently, Kaizen, the Japanese TQM buzz rings louder by the day. If your products do not match up with the international standards, you are done. Many blunder when they look down
Refer to the Post newspaper, “ Democratising marketing campaigns” Wednesday February 14, 2007 pp28
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on or underrate customer tastes supposing people are not as complicated as others. That is a mistake because the pervasive electronic media is fast bringing about homogenous out look to all aspects of life. Thus, the villager at Mwenyi or Tukongote in Kalabo district may not be 100% different from the customer in New York city, if they have access to basic media equipment such as a radio. In addition to producing excellent goods and services, there is need to build in a mechanism that fosters continuity in improvement of goods and services. Many Zambian businesses are content with the product they issued ten years ago and make no attempt to improve, what an error! 6. Continuous Training. Depending on how training is perceived, it will be valued or relegated to the terraces. If it is viewed as a necessary tool to success, then it will be placed highly but if it is seen as a mere cost centre without any pay back, it will not be given the due attention. Modern research has proved that a continuously trained cadre of staff is motivated, resilient, diligent, skilful and generally more competent on the job. It may not hold true in all cases but a trained person feels worth something and can contribute a great deal as well as easily adapt to changing scenarios. Many Zambian companies, while heralding training, only pay mere lip service to it. A large section of the Zambian society requires more training than hitherto received. That said, the other extreme is to be avoided where people go for endless workshops for the sake of it without practically testing what they learn. If training was as important as it is portrayed, then the national budgets would give a large portion of its allocation to tangible capacity building than it has hitherto. It is a scandal for Zambia, which has been independent for 43 years only has two to three poorly funded state Universities! In part, perhaps that could contribute to the low literacy levels among our common folk. As for corporations, capacity building must be held in high esteem at all costs. 7. Human Resource Management: As alluded to else where in this book, Human Resource management is more than just hiring and firing, it is also about Human Resource Development (HRD). People that get on board come with different motives, expectations and aspirations which need to be harnessed towards a certain end so that by the time they leave the organisation, they will have effectively contributed as well as been empowered in terms of capacity building. They should be consultants in their own right. This is what we might call a “win-win” situation where all parties walk away from an agreement better than when they first engaged 251
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each other. Apart from the skill capacity building, other important aspects of human resource management include the psychological, the emotional, the morale and motivation of staff. Exceedingly large organisations tend to be impersonal with no homely touch that is supposed to give people a sense of belonging. Human capital Human capital refers to all aspects of a person that are engaged in the building and sustenance of an organisation. In other words, all organisations exist for and because of people. Remove the human factor and the corporation ceases to be. Thus, every organisation should keep a proper inventory of all the right people in the organisation, know their key competencies and place them in the right place. If they are not thus deployed, the organisation soon begins to dysfunction or may not be as efficient as it ought to be. There fore, the human capital refers to the sum total of all the viable human resources in the organisation who while carrying out their various functions contribute to the effective and efficient running of the organisation. Zambia once had thousands of graduates that could effectively run the country but today, this is slowly dwindling, at least in terms of diversity and distribution. Today’s average graduate is the classroom type educated only to work in the office for some one. There is urgent need to raise another cadre, trained with entrepreneurial skills who can function exceptionally well both in the corporate world or private sector. In that way, even more brighter ideas will be generated that will build mother Zambia. The value of human capital As alluded to above and in keeping with what some masters in the area like O’hara-Devereaux and Johansen (Global work) have said, the right human capital is of great importance for any entity to effectively function. Most of these have been highlighted in the previous section but it none the less important to tabulate this in point form. Human capital is critical because it: 1. Brings about stability in a given context. If there is a shortage or excess of this human capital, different scenarios result. 2. It gives an assurance of the continuity of a certain activity. If the right people are not available or in short supply, the quality supply chain is disturbed. Similarly, if the burdened people in a church leave town, a yawning gap is created. The Church of England has never been the same 252
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after it ejected over 2,000 Puritanε preachers in 1662, its small wonder the church is going through such turbulent times today, nearly 450 years later. 3. Human beings foster anthropogenic activities because their fertile minds creatively bring about many changes upon the landscape. Look at the mining activities, the technological advancements, the beautiful architecture and so on that fills our world. If the right human capital was not there, who would have done these things? 4. Brings about quicker development. With a substantially large skilled population, much can be achieved in terms of development. China is developing so fast today because of the population strategy that it effectively exploits to advance the Chinese cause. A larger population brings about development pressure on the land and thus forces humans to venture forth to conquer all available land lots, the sea and now even the open skies! That said though, we still have to grapple with the down side of development and technological advancement which is by and large beyond the scope of this book. In a nutshell though, we could state that unchecked rapid anthropogenic activities have significantly contributed to the destruction of the planet there by catalysing catastrophic effects such as global warming, unstable weather patterns, pollution etc that will haunt space ship earth for many generations hence. 5. The right human capital helps to bridge the gaps created by time, space and culture. If you are working in the global context or have international company, the right people on your side help mitigate the problems that would other wise engulf you had they not been there. In the time conscious western world, time is of essence while this may not necessarily be so in Africa or Asia, although admittedly, globalisation pressure is radically changing things.
It is now clear that human capital is not a by word but a critical issue that we cannot relegate to the terraces, rather, it is the very essence of organisational existence. As people’s goals are realised, they stick around and devote their best energies. They are the company’s ambassadors. At one point we have ε
‘Puritan’ refers to the nickname given to a set of 17th century English Christians who insisted on the purity of Life, doctrine and practice. Some of the famous ones include Dr John Owen, Richard Baxter and John Bunyan, author of the immortal classic, ‘The Pilgrim’s Progress’
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referred to the HR as a place of “Capacity building”, capacity in what? What exactly is capacity in its essential nature? Let us briefly take a look at this: Capacity building Capacity relates to the ability to do something within one’s means, skills or prowess. It also refers to adequate space or room to accommodate some thing or some one. On the other hand, building has to do with construction, moulding or fashioning something or entity into a desired end. Therefore, capacity building has to do with the transference of skills, power and authority to the next person since they have been made able to do something in an efficient manner. The said process could be carried out by the use of some materials or it could address the mind. In our context, we refer to the latter, where people are empowered to carry on some hitherto difficult task or process. Said differently, the mind is imparted with some knowledge, skill or ability to effectively, efficiently and competently perform a process. In team building, the capacity nurturing aspect is a non negotiable component. For the dream to work, sufficient capacity must be infused into it by way of training, mentoring, coaching or apprenticeship. It usually takes many forms such as formal or informal training, job on training or even long distance. This type of capacity building fosters a “can do” conducive environment where the heavy-handed type of supervision is loathed while the open approach is heralded. The best teams are born from daily mentoring where the mentor and “mentee” walk side by side in a “management by exception” arrangement. In this setting, the mentored person is given sufficient leverage and latitude to explore and make mistakes thus garnering experience and confidence. As people live in each other’s lives, they are able to read and understand each other better. According to modern TQM crusaders, continuous training is the silver bullet to success in the 21st century and beyond. In other words, a well-equipped team makes the dream work.♦ In winning progressive organizations, team leaders are capacity building oasis. When you revolve around their orbit, be sure to tangent off with some of their contagious empowering spirit attached to your soul. In self-managing teams, there is a lot Iron sharpening other Iron for smoother processes.× One of the reasons why the Gospel of Jesus Christ has lasted this long, with the human eye, has been team work brought about by great capacity building passed on from generation to generation via potent succession plans. Paul ♦ ×
Dr John Maxwell has written a book with a similar title “Team makes the dream work” Refer to Proverbs 27:17 in the Bible
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for instance, shared not only the Gospel but his life also∂. No wonder he left an indelible mark! One can scarcely miss Paul’s footprints in many modern Reformed Bible Christians! That is the way teamwork should function after being built. Capacity does have some off shoots and some of these include: a. Innovation Innovation has to do with the originating of an idea and applying it in a given context to achieve the same or even better than intended results. Many innovative people are creative too and always looking for ways of doing some thing better than the standard traditional way as long as their out put approximates to or super cedes/exceeds the industry standard. In any given situation, one must think outside the normal confines of thought so as to achieve something. An example is the Apollo 13 scenario where their oxygen tanks exploded mid space towards the moon in 1970. They used every available article on the spacecraft to survive until they safely reached the earth after a gruelling seven-day voyage lasting over seven hundred hours. In one instance, they used some metal pieces to help remove the excess carbon dioxide so that the air toxins reduced significantly. The improvised machine that saved three astronaut lives March 1970
Courtesy of NASA "Jury Rigged" Canisters to Clean Air of Carbon Dioxide Below is a down to earth example of what innovation may include: The power of innovation In 2001, the Kambule Reformed Baptist Church begun and ran a radio series that lasted for nearly a year and suddenly stopped. It stopped at a time when the program had reached its peak which saw scores of town citizens scamper ∂
I Thessalonians 2:7-9, II Tim 2:2
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for their radios every Saturday evening when the familiar signature tune hit the air waves. What was very intriguing for the producers is that the program was religious, communicating a religious theme, which ordinarily people detest. But this one was different in that it came in series of plays depicting decisions that people repeatedly make in the course of their lives which they either live to regret or applaud. The target group was largely the teen-age youth though it had a universal appeal. In summary, the story was about several characters that were growing up and faced several temptations bordering on peer pressure and how the gospel made a difference in someone’s life choices and perceptions. The characters were native Mongu residents though in the play they used pseudo names such as “Utwa”. As the series began, the characters were introduced and as the plot developed, the 30-minute program hit Mongu by storm. The radio “listener ship” sky rocketed for those 30 minutes and eventually, the radio station became popular by that token. Letters poured in to show appreciation and respond to quizzes that were run at the end of the program but then the episodes came to an abrupt end. To date, people still have fondest memories of the momentous series. But when one analyses the tools that were used in the production of that fantastic series, it was simple innovations put together by the genius of the Kambule team. First, an old dilapidated cassette recorded whose cassette cover could scarcely close was used to do the recording. Secondly, the ancient audiotapes were used and thirdly, the actors were enthusiastic church members using scanty scripts. These elements put together made a worldclass production that shook the world. That was innovation at its best. After that period, the church acquired more sophisticated digital recording equipment but failed to produce even one program. What was the reason? Why fail in the face of state of the art technology? Many answers could be summoned but the following come to mind: 1. The company relaxed since it had reached the apex of their short-lived celebrity career. 2. The attitude as a result changed by the time the digital equipment was arriving. 3. The major stake holders/script producers felt their task was done and needed to move on to something else. 4. The team begun to break down as people’s attention shifted from quality message dissemination to personality tussles. The team dynamics were disturbed, as it were. 5. Some key role players left town and no one could exactly replace their appealing charm. 256
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Sadly, the young generation 2000 came to a sudden close and fell silent forever. What are the lessons learnt? 1. Innovation and a good resolute attitude makes the difference. 2. It is critical to always keep the overall goal ever in focus. 3. You need the right people on your team if you are going to surmount the unimaginable. 4. It is not the technology but the right mix of people that you need to cut a unique niche. 5. You need the right customer relations (customer focus). 6. It is critical to have the target audience in mind as you tailor your production. 7. You need to learn the customer needs and producer things that resonate with them. As can be seen, an entity must foster the development of innovation around the organisation if the millennium years’ dynamism is to be effectively conquered. b. Creativity: Creativity involves using your original inner ideas and strength to generate something that probably has never been made before. Innovation is intimately connected to creation only that the latter originates from the mind using the inner resources as opposed to using some possibly tried and tested ways such as improvising some thing to sort out something. Creativity is the ability to create knowledge. The power to harness imaginative powers into something tangibly worthwhile that hitherto has not been. c. Intuition: this is the inner gut feeling that one develops due to experience or an inward discerning eye. Much has been said about this aspect there fore we leave it at that for now. d. Independence/objectivity: An empowered person is usually able to make independent objective decisions and is ready to be held accountable for their choices. The opposite is true about another that is not thus empowered. By virtue of being ignorant, they are vulnerable and often fear the unknown as well as make serious errors and rush decisions. Their chief goal is to survive and thus use any method as a survival strategy. Not so with the ideal professional. One case comes to mind that involved the famous prosecution lawyer, Mutembo Nchito. At the risk of losing his practicing licence and life, 257
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he refused to budge on the scandalous Kawisha Bulaya case of 2004. Two years down the line, he was vindicated and how sweet the honey at this latter end! (Refer to the Post newspaper of 22nd February 2007, especially the pithy editorial). Had it been some other riff raff, they would have quickly obliged and irreparably ruined their images as some have in the same case. Capacity building gives you options and a strategic eye. e. Direction/ focus: In addition to objectivity, the empowered individual has focus, determination, direction and the will to make things happen because they set bench marks, stepping stones and have the bigger picture in view. The Apostle Paul was a clear-minded man and no wonder he achieved so much in one lifetime than many would ever achieve in three life times! His was a clear path, strategic in out look and purpose driven. Get the capacity you need and you are on your way up! We could go on and on but it is a fitting closing to this section to state that capacity building is not only in material terms but some times this capacity may just be ideas upon which you build a mighty empire in this life and to a lesser degree, the next. Team/group dynamics We now veer to another interesting aspect of our consideration of the opportunity identification and further our cause. Briefly, the next section considers what some have termed “corporate survival” but generally known as “organisational politics”. To a great extent, all of us are politicians and employ different kinds of politics in different contexts. Every ‘people’ interaction generates some kind of reactions as people rub shoulders. The early days are times of others’ discovery, learning to understand them so that the grouping becomes harmonious and cohesive. As people settle, they know each other and know how to interact. In the process of team formation, the group slowly but progressively becomes organic leading to over lapping. Once one member fails to live up to their expectations, this weakens the link thereby twisting the team dynamics. The strategic team does wonders. Survival tactics Organisational politics
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In any society where humans interact, politics of some sort exists, unless of course in the grave where each corpse is confined to its allocation. Corpses only share worms rather than politics. With the human eye, there is dead silence in the grave. Not so where anthropogenic activity is taking place. Venture into any club, society, business or church, politics exist only that they take different shades and focus. Thus, when one first sets foot into a new environment, they may be blind to certain missiles that keep flying around the airwaves until s/he touches the wrong button. That which is invisible to the naked eye eventually becomes visible as more “live wires” are accidentally tripped over. It is there fore prudent to watch out for little, little things that would potentially sour or sweeten relations within the organisation. For instance, if the organisation jealously guards its public image and if one wantonly goes ahead and hazards the name, that person will be efficiently hounded out or marked out for frustration until they eventually exit the orbit. Depending on the powers that be, the operatives behave in various ways so that they can win favour or a good placing. Have you ever wondered why and how some of the most wasteful employees keep escaping the hang mans’ noose? The reason is that they probably know how to play their cards well. Among the most common reasons why these hawks survive is they are connected to some one at the top, have bribed their way, have studied each person and know how to appropriately respond to them or simply plead their way to survival, make themselves appear always available, anticipate what their bosses will want and provide, know when to ask for something and ensure their “goodwill account” is not over drawn. If that account goes into over draft (OD), trouble begins to brew. In other words, the organisational politician can sniff the land mine from afar and swiftly take another route to avert danger. Other organisational politicians are skilled at testing the waters long before others realise. For instance, if one wants to know whether they are valued, they sometimes threaten to resign and see whether the people at the top take note of the threat and respond. If the people that matter appear indifferent, it could signal that the person is not valued. In such a situation, the person finds some excuse to either keep within the fold or simply abandon ship. Caution: If you elect to abandon ship ensure you do it when and if necessary because you could dent your image by the frequent seemingly needless quitting threats that might grip your potential employers with some doubt. They will find it hard to trust you no matter how smart you present yourself because they will feel threatened by your track record. Secondly, you run the risk of 259
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coming out empty handed after a long and distinguished service in a thousand and one different employers. You will have very few people to identify with you and in some instances, you will not have sufficiently built yourself because you were always laying new foundations before you suddenly put up a poster reading “We have moved”! I have met a number of friends along the years who have been all over the working market but still look empty as though that is when they were getting out of College. Granted, the Lord is the one that blesses but we must of necessity do our best to better our lot. Human responsibility is our lot and after we have done our best, if things do not work out, we need not feel guilty. That not withstanding, refuse to come out empty handed in any and every situation. Watch out also at what stage the organisation is at. If it is looking for an opportunity to down size, watch out or you might well be the providential sacrificial lamb! Organisational politics takes many shades and can vary from insignificant to life threatening. Not a few have received the axe as a result of unwisely trifling with fire but other risk takers have triumphed to the next stage of development by the same token. Below, we give an actual example of organizational political correspondence that took place in one organisation many years ago. It happened that an entity was struggling to keep their debtors figure down each month. But sadly, the picture was not changing as fast as cosmic management would have loved. Thus, many of the middle galaxy managers resorted to other aggressive tactics that helped in a measure to change the picture but by and large generated backlashes on all concerned. We engage into a bit of accounting language with its technical coding: Date: AC 2044 Greetings, Your account 900 is a mess. Tunguza, as you prepare the payroll this month, ensure that all advances over 30 days are deducted from the staff concerned without fail. Please submit copies of pay slips to me and to head of audit as evidence of such deductions. N/B Tunguza do not complain of unfair treatment as a result of actions that will be taken against you if you fail to comply with this instruction. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Humble Bully, Senior Manager 260
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Mars CC: Head of Audit CC: Operations Director ============================================== Response: Greetings Mr Humble Bully, We have been in the dark the past week and as such did not access this mail until recently. I think to let the water pass under the bridge once again would be against conscience and professional ethics. Silence would mean consent. I am sure the mail was actually written to me as a person and as such, I venture to respond to correct the wrong impression created by your words. Before I respond to your intimidating mail below, let me make an observation. I have wondered what has happened to your once illustrious servant leadership armour? It used to sparkle brightly and I admired your leadership profession. As I write, I have observed some inconsistency in your talk and profession. There has been a radical paradigm shift in your person. Is it that the dynamic times demand that? I have no telling. Perhaps, the armour has worn out or the servant leadership eon is past, obsolete, fossilised and gone over the horizon. What I have sadly noticed in my hero is the rising of the “Management by intimidation and threats” traits over the eastern horizon. This has eclipsed your bright side. Where is the manager/leader I have known all these years? What is happening my elder brother? Your tone sounds to have a strong personal vendetta note rather than the professional touch. If you have some personal issues against me, can we talk them over between the two of us rather than mingling them with professional ethical things? In response to your strong assertion below, I beg to differ with your dogma. I wish you had given me space to explain when we talked on the phone the last time. Instead, you shut me up and gave me a piece of your mind. I was intimidated. Your concerns were good and legitimate but handled harshly. I hold that our account 900 is 100% ok for the following over looked facts on your side: 1. The report you referred to was a draft report, consistent with the recently agreed position at the Accountants' meeting at Fairmount Hotel. We are to submit a draft report as a funding basis. Further, if you had read the report, your view perhaps would have been different. I wonder, have you read that report? 261
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2. The draft report was obviously before certain procedures had been done such as Ledger Revaluation and Account allocation. This was so because we had not yet received the account listing and to be in time with the 5th day dead line of the subsequent month. 3. In the said draft report, I stated that most of the people had already accounted but I just needed to pass Journal vouchers to reverse the advances. That hair raising $ 18,000 or so would have been a thing of the past. 4. In fact, there is only one or two over 30 days, handling a FX which is expensed over time. The other is still on duty on planet Mars. 5. I will resend the soft copy of the report I sent on March 5 for your perusal. I do not for a moment claim to be a perfect man in accounting matters but on this one, my conscience revolts to stifled. Thus, I end by appealing to you to rediscover the magical leadership prowess that once laced your conversation. I miss it. Here I stand... Shalom, Colossians 4:6 Tunguza Crankshaft Solar system Accountant Planet Pluto Telepathic no:XXXX555%%%% CC: Head of Audit CC: Operations Director ========================================= Angry Boss retorts… Greetings, I find it rather insulting for you to think that if you are asked to correct a situation which we have been struggling with, then you are being intimidated or the issue is being personalized. I do not wish in any way to be your hero. Neither do I wish to subscribe to your definition of servant leadership. I will take this matter up with Senior Management here for advice. Your most Humble Bully Mars ================================================
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Letter from the Director Solar systems Operations to declare a cease fire… Colleagues, I have seen your flurry of emails and I wish to say that the situation is degenerating into personalities and removed from concentrating on our various functions. I must therefore nip this in the bud. The roles that we play contribute to the efficient running of the Directorate and one of the areas that I have been constantly chastised on is A/C 900 and I made this very clear during the last Accountants Meeting in Livingstone. I have asked the two Cosmic managers to be diligent in this area in particular so as to clean up the records. The treatment of the Accountants who are not showing any signs of reversing this trend has been harsh because the picture is not changing at all. Having said this, I want us to remember that we ought to do this in love. Christ commands us to do so. While the NO will continue to give support to the planets, I expect the various staff to work as unto the LORD and give us here space to work too. I lastly appeal to the two of you to mend fences and look at this episode as a stepping stone to higher heights. God speed. Mfwiti Ikali Operations Director Solar system Planet X Universe ============================================== Tunguza Crankshaft enters strategic orbs and resolves to quit… Greetings beloved in the Lord, I hope all is well with thee. Just wanted to request you to start thinking of replacing me in the near future as my strategic instincts strongly suggest that it is high time I exited the solar system orbit. I will let you know about my next manoeuvres in good time but just begin to "warm up a player" at the back of your minds. I fear I might not go beyond September 2044, but If I should do, I will let you know by August 30. Other wise, the Solar system has been very good to me these last six to seven years. I am what I am because of the Solar system. 263
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Thanks for being wonderful exemplary mentors, I will miss working with you. I must continue packing for now while looking out for the earliest flight out of this place. Remain in His keeping. Tunguza Crankshaft Solar system Accountant Planet Pluto departure lounge Telepathic no:XXXX555%%%% How ever, many practice poor politics where they are naïve and diligently dig a grave for themselves unawares. For instance, very brilliant people like Boutros Ghali fell organisational politics victims because they did not pay attention to the “natural laws of the organisation” On the other hand, Kofi Annan survived because of his articulate scheming. For one thing, he has married an American, been to school in the US, and knows where the booby traps are and avoids them. One can argue that he is but a puppet but let us focus on his smartness… The following write up will help illustrate and augment what we have been saying. The Boutros Saga Much dust and speculation has surrounded the unceremonious departure of Boutros Ghali, that great Egyptian, from the United Nations Secretariat office at the end of 1996. Whatever the case, his ordeal has been one worth picking a few lessons from so that we are not caught napping by recurrent historical pitfalls. As earlier intimated, Ghali was hounded out of office having accomplished much though his illustrious career has been deliberately marred by his critics. Who exactly is Boutros Boutros Ghali, if we care to ask? What did he do or not do that caused him appear a dismal failure at that top job? For one thing, we do not have much background information about him from the article “Why Boutros fell from grace”, which appeared in the magazine “New African” of October 1999. The said article is more focused on what happened at the UN secretariat rather than his genealogy, Bio data or profile prior to his election to the UN top job. It deals with the causes that led to
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Ghali’s ouster and replacement by Koffi Annan from Ghana. For all we know, Ghali is an Egyptian and seems to have worked tirelessly at the UN for many years before he was elected into office in 1991. He is a highly principled man and possesses all the traits of a great statesman and not easily shaken off his principles. Also, he seems to posses a very crystal clear mind that is both strategic and objectively analytical as evidenced by his seasoned comments. He stepped into the UN offices shortly after election with a burning passion to restructure the UN into a more agile and relevant organisation, in keeping with the original San Francisco goals of 1945. As we know, the UN ideally is there to preserve World peace, prevent wars, alleviate poverty, improve global health, and fight exploitative labour practices as well as resolve regional conflicts. This is achieved through many interventions, such as negotiations with Governments and using its own military force, derived from the UN member countries to quell crimes against humanity. When the World body commenced its work many decades ago, all these goals were very fresh and justified the existence of the UN. But alas, with time, it has turned out to be a US tool to advance America’s global dominance political agenda under the guise of being a “world peace watch dog”, when the UN is supposed to be independent and objective, detached from any single Government manipulation. The advent of the cold war made the UN further lose its sovereign identity and to this day, it still is firmly clutched in US hands. This is what Ghali set out to change, and as it were, touched an American “naked live wire” instantly electrocuting himself! But then, the man was prompted to institute these drastic manoeuvres because of the organisational state of the outwardly sparkling entity. When Ghali took over the mantle, he found a desperately weak and fragile entity literary struggling to keep alive. What were the root causes, one may be prompted to ask? For a long time, the UN has been owed billions of dollars in unpaid subscriptions by member countries, chiefest being the USA. As a result, the world body has operationally been crippled. The only way to get round this hurdle was to restructure (re-engineering & down sizing), cut down on staff, limit travels and initiate controls on the use of resources. Therefore, when Ghali stepped into office, his keen eagle’s eye diagnosed the problem and immediately prescribed a remedy, but ironically, the proposed solutions greatly infuriated some power mongers. These were but the first straws that lashed out at the US Government and from then on, he was a marked man. Further more, he begun to advocate objectivity and fairness in treating 265
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conflicts around the world. What was evident was that the US could pick and choose at will whom to help, when and where. Hitherto, no one had dared question such hypocrisy but Ghali irked some quarters when raised his finger in protest to this disparity. The question still begs answering, what exactly was the problem root cause? As earlier intimated, Ghali was firmly convinced that the UN was unnecessarily too huge, complex, bureaucratic, and unresponsive, and as such, he sought to awaken the world about the need to restructure so that the UN be transformed into an agile, fluid, relevant, responsive and environmentally conscious body. The operations of yester years were obsolete and needed revisiting. This called for drastic cost cutting measures and the instillation of greater stewardship of resources. In a nutshell, this was Boutros’ pulse for which he fought valiantly to the bitter end, squashed but unvanquished. The problems really begun at that point of attempting to restructure the UN towards a meaningful role in a post cold war era. He wanted the world focus to shift away from the US to the UN. Having made some initial changes, as highlighted earlier on, he finally broke the camels’ back when he jokingly remarked after his leave, saying “I am happy to be back here blocking more reform, flying my black helicopters, imposing global taxes and demoralising my staff.” Unknowingly, this was a suicidal joke because the same got the greatest malicious publicity ever. From that point, the US, through that villain, Madeleine Albright, continuously fired their arsenals at Ghali. They coaxed him (Ghali) not to go for the second term. After all sinister persuasions failed, the Americans offered another luxurious job to silence him but alas, not even money could silence that principled Sphinx, much like what was said about the Reformer, Martin Luther, when the corrupt powers of the day exclaimed, “This fool does not even accept gold!” Ghali too was far above bribes! In the long run, after much frustration, anger and nausea, the US went full throttle to oust the man using the vote, simply for not pledging allegiance to the “finger that fed him”. The Americans vigorously campaigned against and vehemently voted Ghali out in 1996, and placed their pawn on the chessboard. It is now many years after that horrendous episode, we have no telling how plain sailing it has been for Annan but for all we know, Boutros Ghali fought a good fight and never forgot mother Africa! Having analysed the scenario, it now remains for us to draw a few lessons and conclusions from our observations. 266
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. Firstly, we note that Ghali was probably naïve about many things when he stepped onto the 38th floor of the UN Secretariat. He assumed too much thinking all were friends when viper tongued politicians were lurking in the corridors to strike him! Secondly, he seems to have been unconcerned about the immediate impact of his reforms. For all we know, change is always resisted, especially when it threatens peoples’ status. America is in its declining stages as a world power, and the kicks of a dying horse can be deadly. Thirdly, although his reforms and strategies were excellent, it seems to me that he had worked on the flawless ideas with a small click of friends, to the exclusion of all others. As such, his ideas were perceived to have been force fully shoved top-down rather than participative. In the fourth place, He seemed to have been in a terrible hurry to implement the reforms and did not make a proper internal situational analysis of the HQ. Although he did a good overall operational analysis of the organisation, as evidenced by his apt conclusion that the world body was too bulky and over weight, it seems he was unaware of “who is who” at HQ. Naïve about UN organisational politics, he bashed some folks on the head while he spat others in the face. How they gnashed their teeth! I am one who supports originality in a leader and would have applauded his brave assertions but it is more prudent to know your enemy before you act. Tread circumspectly when restructuring as a general rule. Fifthly, organisational reforms take time, especially the complex UN having tentacles all over the globe. Ghali, should have first looked for ways to curb the off shoots of the radical and comprehensive changes by preparing people through training. In addition, he should have been more careful to motivate his staff in various ways, such as capacity building and the need for organisational mutation. As the momentous event recedes into the irretrievable past, we can only salute Boutros Ghali for the resilience he displayed in attempting to steer the titanic UN back to sanity. As he himself aptly concludes, “I believe that such a transformation is still possible and will succeed-if the United States allows it to do so.” we trust that the petty politics will be surmounted and the metamorphosis realised.
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the communication problems, we have no telling exactly. But then, how has Anan successfully survived to the end of his second term? It seems he knew the ropes and could smartly read the times as well as the changing writing on the wall, though his son’s deals nearly tarnished his image. Former World Bank’s President, Paul Wolfowitz was not so lucky for he suffered at the hands of his fellow colleagues (May 2007), charged with conflict of interest, in relation to his girl friend. One needs to vigilantly watch and walk circumspectly thereby forestalling any future adverse backlashes. But then, being politically right outwardly is not enough, one must have certain extra traits to lengthen their longevity in an entity. They have to develop and refine these unique attributes to succeed. The key words are ‘unique competence’. Individual survival strategies 1. Possess a unique ability, competence and skill-This comes about when an individual possesses rare and unique abilities in a specific area to the extent that the organisation entirely depends on them. In this case, the person in question has distinguished him/herself in a given area and has developed unrivalled niche. Such an individual often have a natural skill or they acquire high proficiency along the way. This expertise is acquired, internalised and perfected after repeated applications of the procedures. It is generally believed that once one repeatedly performs a procedure over a five-year period, s/he acquires mastery in that particular issue and becomes an expert. Others simply possess an intrinsic knack for certain functions such that they barely practice but simply have an insight into those matters. Some of the practical areas include Information Technology (IT), driving, report writing, proposals, software packages, hard ware, database creation, data analysis, interpersonal relations, public relations, research, quality management, cost cutting knack, business acumen, manipulation, tax avoidance and many other areas. In each case, the person distinguishes him/herself to the extent that imitators appear serious novices relative to that person. In a few words, distinguish yourself. 2. Possess intrinsic worth and assets e.g. education, money or status. Some people posses certain qualities that are rare and far between. That which resides either between their ear lobes or their wealth or 268
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status makes it difficult for the organisation to easily prune them off as they add value to the organisation profile. For instance, those that are educated and have internalised some expertise may use that to hold the organisation at ransom. I once heard of a PhD holder in one organisation that was an expert in report and proposal writing. The presence of that person in that particular organisation made many donors, including the UN, to pour resources into that organisation. What was at play? That person had educational and specialist assets. I have also heard of a company that harboured a near non-performer in the organisation. This person committed a number of misdemeanours and felonies but for some unknown reasons escaped unscathed. In the fullness of time, it became clear that the person in question has a high social standing with a lot of money lacing his being. 3. Possess extensive connections within and without the organisation. It has been said that for one to survive well in the modern world, they have to have at least the “seven Cs”ℵ tied to their names, namely Cash, Car, Cell, Connections, Clothes, Cottage, Computer and Courage. The forth attribute is critical in modern Zambia in about everywhere one goes, whether in ecclesiastical circles or not. Without critical linkages, it is nearly impossible to get things done at lightening speed. Where one will get some thing done in three minutes, another hardly gets it done in three years! This is a sad but true tragedy. The implication of what has just been stated is that whilst it will be easy for some people to get along, it will be extremely hard for others to survive. In Zambia today, people are almost all related from state house right down to the pauper on the street. This means that one cannot deal with one person without affecting the neighbour. It is more like a double entry affair, in the accounting world. Further, it means that one cannot fully trust and rely on the next person to maintain confidentiality, for who knows, the person could be related to the gossip target! I once heard of a case where a certain aggrieved person in a parastatal complained to some senior Government official about his immediate corrupt boss. Little did he know that the person complained to, was a relation to the reported person and linked to higher offices! You can guess the end of the story, the righteous man got the boot! We can see that certain people, despite being liabilities, sometimes survive and rise from level to level ℵ
More Cs available!
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within or without the organisation. Others have built powerful linkages with people outside the established channels or organisations and can freely summon those resources at will. For instance some opposition politicians have been known to lobby support from all over the world to put pressure on the government. Others boast of having linkages with some of the most powerful World Presidents as their colleagues. Examples abound but suffice it to say that linkages help myriads to survive the hangman’s noose all over the world daily. 4. Known quantities (KQ) - Some people simply carry some clout about them and are constantly sought after rather than their seeking. Such people rarely apply for jobs but the reverse is true. KQs are outstanding individuals on the industry and inspire confidence in others. The presence of such people in the organisation attracts good will, clients and compels other organisations as well as individuals desire to have some thing to do with the organisation in question. In the past when the quantity was not present, people would not have bothered about the organisation but at the arrival of the KQ, eyebrows are instantly raised. Should those people leave, then out goes the goodwill as well! As such, when these fellows misbehave or break corporate ethics, the organisation has to count the risk factor involved. If the continued employment of that person means image loss, then the prudent thing is to immediately relieve the person; if the opposite is true, reconsider. 5. The organisation has invested too much in them. In some instances, organisations tend to spend a lot of money on people to build their capacity, in keeping with the modern management trends. As this is done, huge amounts of cash are splashed out and the only way to recover those costs is by bonding people to the organisation until the agreed time. The bonding period varies from organisation to organisation but the average is between two to four years. In that period, when the person concerned commits some “crime” against the organisation warranting instant dismissal, various schools of thought arise over the matter as different angles have to be put under microscopic scrutiny. The over riding issue often will be the cost benefit analysis relating to how much has been spent, how to recover the money or whether the organisation stands to lose goodwill. Half the time, organisations opt to retain the staff until the full recovery is made or the tenure fully served, by which time, many dynamics will 270
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have mutated. In that way, some people realize this loophole and exploit it to the full, knowing that they cannot be easily laid off. The frustration of course is that they will most probably not rise to the higher echelons of power within the organisation as long as their name remains in the mud. In a word, the people in question are too valuable to let go because of the hind investment. The author recalls an instance when he met some lamenting important Government official over the non-contract renewal for his colleague. His argument was on the amount of investment and training in that person who lost the job but the response given was simply stating that the capacity thus built enabled that person to get a job elsewhere. The investment trap could have worked well but the strategy failed at this stage. For the astute strategist, bonding resulting from training could turn out be a grand opportunity, a means to an end. 6. The individual owes the organisation colossal sums of money. This could take different twists and contingent on a number of issues such as how that person’s presence will impact the balance sheet, cash flow and the like. In many cases, the person knows that the organisation wants to recover their money that has been advanced to them in various ways such as loans, stock and any other significant amount of money that is impossible to conceal from the auditor’s watchful eye. I have heard of people who owe so much and by that token do anything they please because they know that the organisation is held at ransom. However, and sad for the black mailer, the organisation soon reaches its wits end and eventually find it cheaper to jettison the person, some times to the pleasure of the victim, because they will have achieved what they wanted, bad debt write off. In other instances, the person is ejected when they least expect and hurled on to the streets with a bad CV haunting them as they go from one potential employer to the next. This ghost can only be exorcised if and when the person starts their own business or links up with others. Thus, it is a 50:50 tussle in a sense. 7. The organisation owes the person a lot of resources. The organisation is indebted to the individual as has happened in some political parties in Zambia. Their hands are tied and cannot freely decide issues without having recourse to the major creditor. By default, the person in charge is the organisation sponsor. In such a scenario, we have numerous Muppet shows. In Zambia, some political parties belong to 271
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some influential financial figure who literary run the party from their pockets. Election after election reveals who the financial giants are. 8. The person is related to some significant person up the organisation ladder. This happens very often in Zambia and interestingly, even in some of the most developed nations! Because of the powerful nepotistic connections, that person has leeway to do what they please and get away with it at will. When any one tries to correct the anomaly by way of reprimand or discipline, some invisible hand files an injunction which may sometimes back fire on him/her (the disciplinarian). I have worked for organisations where every management and operative layer had at least some relation planted there and usually, these people cause a lot of problems. At other times, they act as secret informants of top management when no body suspects them to be traitors like Judas of old. This problem is exacerbated where the owner of the company is at the helm and saturates the company with his direct or proxy blood relations. In fact, such entities rarely succeed as every one has their own agenda which may be at variance with the corporate goal congruence. The off shoots of this include inefficient systems, top heaviness and dysfunctional corporate structures. If this scenario persists, the organisation is headed for the corporate bone yard. Unfortunately, in Zambia today, one can scarcely avoid the “wako ni wako”√ syndrome. It is simply too deep rooted, especially after the 1991 revolution led by Dr Fred Chiluba which has matured in the Mwanawasa regime. Perhaps that is one of the legacies of a market economy and privatisation!? 9. Smooth talkers. Some people simply have slippery tongues! They have the capacity to generate different impressions and feelings in the air where ever they happen to be. When in trouble, they know what, how and when to say things and escape unscathed where others would be jailed for life! These people are excellent actors and one wonders why they do not join the professional acting career! In one moment, they can make myriads shed tears just by their words and actions, while in the next, they can make people laugh their lungs out. Even generally grave looking fellows like Mwanawasa can laugh uncontrollably under the potent spell of these people! Smooth talkers √
This is nepotism
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know what you want to hear and in what way, when and how you want to hear it. They wittingly package their world award winning messages, knocking out even the meanest person, as it were. Interestingly, rouges, some in suits, occasionally tell the whole truth but by and large, they will tell you half truths that leave enough room for them to squeeze between the cracks and escape with their lives. When you are sad and need cheering up, they swiftly come with a well-packaged message to lift your spirits and when you are most happy, they ask that request that you would not ordinarily entertain and get what they want! That is not to say that smooth talkers are all like the sly politicians of our day, some of them are genuine and wellmeaning people! Fredrick Chiluba was a classic word manipulator. For ten years and beyond, the man has consistently hoodwinked the vast majority of Zambians whilst in office or after. I bet he is more popular than all the other presidents combined due to his sweet tongue. Ironically, Zambians revere crooks rather than righteous people probably because most of them are lazy and liars themselves. 10. The organisation’s fear of litigation especially when a person is on permanent and pension able service. In the event of a contract, the organisation may have to put up with the person until the contract period is over. This becomes a liability and costly if the problem deserving parting happens in the first year of a three or five year contract. This point has to do with the labour laws of the land. Different countries have different laws as well as interpretations of the international statutes. In some countries, the law provides that any person employed is entitled to a lifetime pension, while others have various stringent rules that are generally favourable towards the employee rather than the employer. It therefore means that employers must ensure that they observe the extant laws lest they be summoned to court where the organization not only loses face but market and niche. In highly litigious nations like the USA and UKγ, the employers are constantly existing in fear of being sued, while in countries like Zambia where the lax labour laws exist, the employee is the one that lives in constant fear of job losses. In some cases however, it is not the laws in and of themselves that are weak or archaic but it is the weak application or enforcement of the same.
γ
Refer to the International book-keeper, August/September 2004 issue story entitled “Employees fear staff”
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11. Antagonizing the superiors from below- this happens when the subordinate perceives a difference in perceptions among his/her superiors over a matter. The said person deliberately elects to pursue one path at the cost of the other and when confronted, s/he explains from their standpoint. This causes the superiors to enter an antagonistic tussle while the subject sails along safely. This also tends to happen when there is duo loyalty and various conflicting instructions are fed into the person at hand. 12. Corrupting some key person by paying them in kind or other. This happens when people have to pay in some way to the superior to maintain their job. This could happen when some one undertakes an official trip, they leave a portion of their per diem with the boss. Others are given certain privileges and expected to cash in with the boss at some point. It has been heard that some Police officers are put at some roadblocks popularly known as the “gold mine” or “ATM” with the sole purpose to raise money and cash in with the boss. Other police officers are alleged to be given the Police motorcycles to raise money for some superiors failure to which one is cast out. Another popular way is to pay in kind. This mode is historically common among the female folk who pay by their bodies to maintain their positions. They offer sexual favours to their lovers and in turn are rewarded by fat salaries, good conditions or even promotions, in some instances where they do not even have any qualifications! Despite their serious blunders on the job, these people some how survive and even proceed to higher orbs! Note that this is not a universal situation but is sufficiently common. In these latter days, women have also become sophisticated where they tend to patronize their junior male staff for sexual favours too. They are “sugar mummies” Further, others demand kickbacks from those they help to clinch certain jobs or contracts. As long as those “loyalties” continue to smoothly and timorously flow, all will be well despite the odds. Cartels are commonplace in some countries, including Zambia. 13. Quality out put and responsiveness. This occurs when a person churns out quality and comprehensive stuff to the pleasure of the superiors. The person is able to anticipate, proactively capture and document certain data such that when the information is requested, s/he at the click of the finger sends the requested information. Another aspect that marks this person is their responsiveness to issues. The person 274
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responds timely or gives prompt feed back creating the impression that they are constantly on top of things. Over time, these people become reliable and people count on them as the case might be. 14. Align oneself with the bold, rich and influential i.e. imitating them or being overly loyal. To survive or get some thing out of people, you need to exploit some tact. Degree varies from person to person in the use of tact. Some are amateurs while others are experts. The experts often know “who is who” in whatever situation and quickly establish friendships of convenience and will pretend to be extremely loyal until they achieve their goal and then suddenly bolt, leaving no fingerprints! It is normally hard to detect the experts’ schemes and often lands many well-meaning leaders into trouble. Usually, such crafty people will go to great lengths to agree with the powerful, some times even risk sacrificing their own image on the pleasure alter until they achieve their goal. The author recalls countless politicians who have ascended to power echelons through being needlessly loud mouthed and supportive to the President when in their heart of hearts wished the appointing authority dead! Once the tide changes, they also do the same, parroting newfound principles! That calls for tact and a pliable boneless character some times. 15. Database. This is when some one has access to highly confidential or sensitive information. This person could have information about the organization or some senior people such that if they attempted to hound the fellow out, that would open the implicating Pandora box. To that extent, the person will be treated with utmost care until the information becomes irrelevant or non-incriminating. By that token, some have kept their jobs for as long as they remained a source of blackmail. In other instances, the person in question may not be a black mailer per se but one that has a special skill to gather data from the grape vine and pass it on to the relevant people. The person has extensive and complex information networks within and without the organization. If you want any information regarding anyone in the organization, just plug in and within a few seconds, all the data and information is at your disposal! These people operate like a search engine and are themselves part of a human Internet. Simply log in to their server and all your queries will be answered! Such individuals wield a certain influence and power in the organization and become assets for data mining. In other instance, these people act as informers 275
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and mood readers in the organization and eventually pass on information to senior management. Before any major decision is taken, these people are consulted as to the implications of a given move. By that token, it is really difficult to get rid of such a person as you risk losing rather than gaining. 16. Bureaucracy and red tape. In this scenario, where an elaborate bureaucratic structure and red tape exist, the person takes note and does a thousand things before the axe finally arrives. Bureaucracy slows down decision-making, justice and in some instance breeds a fertile ground for misdeeds. The danger is not immediately seen but perceived as distant and unclear, it may or may not take place depending who is in office. In the case of Government workers, a case may take as long as three years before an initial hearing is down, in which time the person may have either moved on or made amends for all the flows. The skill to read the writing on the wall, wiggle ones’ way through and smartly get away with it is fast becoming a way of life. In Private companies however, it may not be the pace as much as the number of stakeholders involved in the decision making process over an issue. Until they reach a consensus or compromise, the person in question hurtles along unscathed. In another sense, involving many stakeholders has merit in that it ensures that a person does not get an unfair hearing. But the issue at hand is the person taking advantage of the bureaucracy and red tape to get away with “radioactive baggage” undetected. Very well then, we rest our case there with respect to some survival tactics, it is therefore fitting to go further and consider some dangers to watch out for whilst operating in the corporate environment or indeed any community where politics are bound to take place. Hazards to watch out for in an organization 1. Framing: Some times when people feel blocked in their clandestine evil activities, they can go to all lengths to get rid of that person either harmlessly or violently. A story is told of one Milling company country General Manager who nearly landed behind bars but got a demotion instead. Mr Gabriel Mombo had worked tirelessly and honestly for many years and rose through the ranks. The proprietors loved and appreciated the man, hence the rapid promotions, his crooked work mates, did not despite their respecting this deeply 276
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professional and religious Manager. They plotted to get him out of the way so that their back door flour transactions could flourish once again. One day, Mombo arrived at the checkpoint before driving out of the plant and leisurely allowed the security staff to check his boot while he whistled away a hymn. To his utter shock, they found two full flour bags in his boot! The man could not explain and was subsequently charged with attempted theft. His unimpressed employers pardoned him and thrust him into a much lower frustrating job where he practically had no power or influence. With him out of the way, the flour trade resumed apace. Always watch your back, never take any chances like the naïve man. Another story is told of one Mr Chionsa, who worked as a marketing executive for a multinational organisation that traded in essential commodities such as soap and washing powder. Every time he was making a delivery of goods to a corporate client, he sometimes used casual labour or company staff. One time, he received an urgent call from their best client and had to make an immediate delivery. He ordered the consignment, instructed some the workers to load while he read a newspaper. As before, he just signed without checking the accuracy of the contraband since he trusted every one and drove to the client premises. When off loading, he witnessed the count and shockingly, a number of washing powder cartons were missing. He ordered a recount but to no avail. The man instantly got the sack. Pleased with his jettison, his work mates continued with their flourishing back door business. Never assume, never trust any mortal especially as relates to cash or stock. 2. Cartels: Sometimes, it may not be framing that hacks many innocent people from lofty jobs, cartels do. A Mr Nkhalamu worked for a large multinational organisation as procurement manager. From the day he was employed, he was a marked man, to see what he was made out of. With time, his employers became fully convinced they had got the right guy for the job because of his diligence, resilience, brilliant ideas and clean record. But the other group, whose friend had been replaced by good Mr Nkhalamu were not pleased with this “too straight guy” because he stood in their way. The previous guy was an ally in the shoddy deals and had contributed to their business empires. Unknown to Nkhalamu, he short-circuited deal after deal as he brushed off many requests or dismantled many bad transactions. Soon, it reached a head, 277
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they ganged up and brought a false charge against him. As he entered his office one morning, he found police who ordered him to pack all his belongings and leave. They handed him a dismissal letter at the gate. By the time he was seeking legal action, all evidence had been destroyed, including his computer that had all the sensitive strategic data. Thank fully, the man had printed hard copies and kept on file at home. That not withstanding, he lost that powerful job. Always have a back up somewhere. 3. Others are more lethal in attempting to get rid of their rivals. They poison them at drinking sprees, parties, office tea or water etc. The assailants first study their target’s habits after hours or in their leisure time, if they cannot crucify them during the working hours. If it is liquor or drug abuse, they take that person with them, offer lots of drinks and drop in some toxic substances in the drink when the fellow is not looking or has gone to the toilet. The next day, the man is history. Others are more courteous and put slow killing poison in your drink or food. Secret security agents are fond of this tactic. Still others, assassinate your character so badly that by the time you awake up to reality, you are off the charts. Always be alert and constantly scan your surrounding, any person is your potential killer. Not everyone who smiles is a friend indeed. Further, we would not be far from the truth to assert that any person is a potential death trap. Remember the Hui Cho killings (32 slaughtered) in the USA Virginia Tech in March/April 2007. Your next sip could well be your death call. 4. More humorously, witchcraft stirs much fear in people’s minds whether elite or not. Countless stories are told of how witchcraft effectually leaves a devastating trail, though no audit trail can trace it. Only its effects are seen. Witchcraft relates to the use of evil supernatural powers to accomplish something. In offices, people believe they have been bewitched by this and the other, which is why they are ill, unemployed or unable to keep a steady job. If and when a person dies, other stories emerge of how that the person could not have possibly died of natural causes, there must have been some evil hand somewhere. Others flee their jobs after being threatened with some magical assault.
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Imagine for a while that one day, after a heavy and stuffy Friday you knocked off late and went home eagerly looking forward to a restful weekend. It is in the cool of the day and nothing would be better than a Friday!! As you settle for a bath, warm cup of tea and then jump into bed, you hear some strange noises outside. Since you are weary and tired, you resolve to ignore the noise, after all, you have heard Hyena like noises near you bed room window before. But as the watches of the night progress, the noise, akin to a dog persist, you remain stuck to your warm darling blankets as you treasure your beloved sleep. Thus, the night goes by. In the morning, one of your dependants suddenly dashes back into the house and informs you that a dog is stuck in one of the small openings in your tiny verandah. Naturally, you immediately dismiss her claim as mere fantasy, but then the she insists. As you get to the scene, you get the shock of your life, lo and behold, a big dog is stuck in your verandah wall, as it were, in small hole whose diameter is almost three quarters the size of its head! The head is the other side of the wall facing the out side while the rest of the body is in your veranda! What would you do? Imagine further that the dog cannot come out having struggled all night and yet is still alive? Would you proceed to break the wall to set the poor creature free or would you opt for the grisly option to crash the dog's head and then thrust the "grinded" head through the hole? This happened to one of the members of staff here at Planet Pluto. Pray for us earnestly brethren for divine protection against the onslaughts of the evil one! We need to put on the full Armour of God constantly. Or Consider another case that happened to the same said staff mentioned above, Slippery. She had been having a good time with colleagues around especially so that she was the ‘hot babe’ around. In the process, she wooed the hottest dude on the block who fell hopelessly in love with her. Life was cosy and good in
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every way. I mean, the guy had a good job, good looking (super handsome), was driving and was rising fast up the corporate ladder. What more could a girl look for? Hey, life was ‘cool’ despite dissent from certain quarters. One striking thing happened shortly after they announced their relationship to the world. The other interested girls and guys were disappointed. Evidently, the girls were more hurt because what follows left hairs standing on end: The next day after a powerful bash with friends, there was sweet feelings in the air. Her dude had gone to his palace after gracefully dropping her off just after midnight. She staggered into the house and greeted her mum as she pulled herself to lumber onto the couch. In the morning, she surprisingly found her self comfortably sleeping in her bed! As was her custom, she got up early with a view to fetch bathing water outside in readiness for work. She opened the door and then horror struck! Lo and behold, right there in front of her door step was a complete set of female clothes in a heap as though some one had undressed there. Right from under wear to a coat were all there. The terrified girl slammed the door and ran back into the house for her dear life. Thankfully, more seasoned though superstitious mother was on hand to advise on the way forward. She calmed every one first and then proceeded to collect the set of clothes using a stick and burnt it some distance away. As the burning was taking place, curious onlookers from the next flats had gathered around. That was the story of the day for many weeks to come. Was that a warning sign? What would you make out of this scenario? 5. Information concealing and hoarding: Often when a new person is employed, especially a fresh graduate who threatens the incumbent’s position by virtue of their competence or education, the old guard enter a self preservation mode to protect their turf. They use several weapons by reason of having been around for a long time and by that token know all the corners around. Their aim being to frustrate the new person, they resolve to frustrate the person. This is done by deliberately hiding critical information so that the person cannot function properly and in the end appears incompetent or unresponsive. If its is not information hoarding, they pretend not to know the work very well as well as the system. That way, the so-called graduate is stranded while they laugh all the way to the bank. This is very common in almost all organisations especially in the bureaucratic Public service, although it is equally universally wide spread in the shrunk Zambian job market.
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6. Silent latent opposition: At other times, it may not necessarily be information hoarding but manifests itself through lethargy displayed in many ways such as indifference, appearing bored, unwillingness to try out new ways, insisting on the traditional paths or faking illness when it matters most. People can undertake a “go slow” whilst they are around 24/7 of the time but their out put is scandalously and ridiculously low. A check on the previous records before the new person arrived on the scene shows a shocking difference. 7. Booby traps: At other times, the older employees set traps for the ignorant new person to see how they behave or make serious blunders early in their career which reflects badly on them. The first impressions create a lasting opinion and as such, the person cannot be trusted or given higher and greater responsibilities. A story is told of a colleague of mine who landed a big job which the older generation employees had been gunning for. The only way they could get rid of him was to let him sign something during his probation period against the prescribed organisation rules. He signed himself out. Always know your limitations as well as rights because in every entity, there are unwritten rules, regulations and by-laws. Watch out for those land mines lest they detonate under your feet! 8. Deadlines: At times, time is of essence in some organisations and as such, make sure you know where the naked wires are lest you electrocute your self! Depending of which department or organisation you work from or for, it is critical to know what needs to be ready when and ensure it is proactively ready and made available to the target group. In the NGO world, deadlines are a big issue that may not necessarily be true in all civil service departments or ministries, at least so it appears. Excessive bureaucracy and red tape militates against efficiency. The author once worked with two former civil servants that joined the NGO world. Both impressed the interviewing panel with their skill and experience. By all counts, these men were seasoned and potential performers. At the end of two years, one was an excellent performer, time conscious, innovative and reliable while the other was full of unfulfilled promises, lethargic, antagonistic, late comer and despised deadlines as machinations to over work people. The latter, though more qualified and probably more competent lost the job. The former proved himself and was elevated to some senior
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manager in a short time. Know where the roadblocks are and strategically position your self. 9. The grape vine/malice & slander “internet”: In many organisations, professional or not, there is what is known as the “grape vine” which is an effective communication channel. This vine does not have “handles” per se but relays oven fresh information that is taking place within the organisation before official communication is made. In strong oral tradition cultures like Zambia, a good percentage of the rumours making their rounds prove true or have a ting of truth about them. Some have tried to wipe them out but alas, the more they tried, the more they poured fuel on the flames. Thus, some scholars have suggested that no one can totally kill the grape vine but only minimise its damaging effect by proactively making the truth available before anything is said about the matter. Where corrupt clandestine manoeuvres take place, rumours begin to take their rounds and before long, it becomes the talk of town. By the time an official statement is made, the crowd would have moved on to the next latest rumour on the block. To hook on to this network, all you do is show that you are interested and then a network socket will be shown you so that you can plug in and out at will. The sad thing about grape vines if not properly handled can degenerate into oasis where destructive slander, malice, gossip, classified information, wrong perceptions and bitter warfare thrive. In the end, people spend all their lives dreading and watching their backs, not too sure who the friend or foe is. 10. Power jostling/wrestling: This is the all too familiar activity that takes place in almost all institutions, whether in the home, school, church or office. Depending on who is at the helm and who is led, power struggles can and do take root. This occurs usually, as earlier hinted when people have a insatiable appetite to control resources, are proud, want to be obeyed or fear being toppled by the operatives. Thus they spend all their lives avoiding land mines, protecting their turf or securing their fort as much as possible. This debacle can take different directions and if not carefully watched degenerate into serious polarisation with a crippling party spirit that literary grinds an entity to a halt. In such tussles, people devote their energies in the wrong direction and have no strength left for any other productive venture. This wrestling may be loud for all to hear or silent but hot depending
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on the ploys and strategies used. Always avoid from such fights unless it hinges on your survival. 11. Power distance: Power distance refers to the power dynamics that exist in every organisation. Usually the managers tend to be bosses in the real sense of the word and everything revolves around them. In many Zambian institutions, a manager is untouchable and no body dares question them on any matter lest they be flushed out of the system or charged with insubordination. It is interesting to note the power distance between the boss and his deputy. Once s/he goes on leave, the acting person must literally consult on every decision, no matter how small lest they burn their fingers. When some one visits any office, large or small, they can almost tell what their relationships are like with the Manager by the way they behave when the fellow pitches up. If the power distance is large, the operatives disappear into the nearest crevasses like cockroaches when a light is suddenly turned on. They seek refuge somewhere or become suddenly mute. Where the manager is a team player, everyone is free to express themselves regardless of whether the manager is present or not, of course bearing in mind the binding ethics. Look at the Zambian scenario where the vice President dreads the President as though they can be struck dead. In our country, the first lady wields more executive power than the vice President, at least the power distance is less between her and the President compared to the vice. Would we be far from the truth to assert that the first lady is in fact the de facto Vice President? I doubt it. 12. Interrelations & nepotism: A story is told of a certain man of high integrity whose boss was highly corrupt. The corrupt tendencies became too much to bear so the righteous man decided to report secretly report to his boss’ boss hoping to get a quick action. What he got instead was a boot out of the system. He later discovered that the person he reported to was in fact related to his immediate boss and subsequently highly connected to high offices. Try as he might, the man was locked out by the cartel that apparently “professional” environment. That is but a tip in the iceberg because, in Zambia, we are all almost related. Dr Kaunda’s “One Zambia, one Nation” slogan has really brought about mixed blood to a point far better than expected. One is hardly surprised when a Kangwa is intimately related to a Sipalo or a Hanyanga. This is fertile ground for a healthy family 283
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tree as has been evident in Zambia for many years though people in power vehemently deny. Thus, if we were to strictly follow nepotism witch hunt, no one would be spared because we would be all accused of supporting our own. That said, there are situations in Zambia where some people are clearly biased towards their own relations, and if it is within their powers, they short list only their relations and a few weak candidates. Who can pin you over people who have been interviewed over a cross section panel? If such a thing continues unabated, it becomes a citadel of laziness, abuse and subjectivity where rules are used depending on who you are and not what the policy says. 13. Threat i.e. education, fame, favour: At times, it is has nothing to do with all funny vices such as nepotism, jealousy or tribalism but people feel threatened and do everything to frustrate any potential challenge. The writer once worked in a province where the natives always complained of other tribes taking up influential positions in the province. Fair enough, but when he worked in another province where their own tribes men reigned supreme, there were endless power tussles because the newer upcoming generations were more educated, exposed and issue based in relation to work. Thus, it is not which tribes man is in charge but who does a good job! Another vice that bugs entities is favouritism, inconsistency and subjectivity as relates to a certain “ruling class” in the organisation. Remember what favouritism did to Jacob’s family? Strangely, some times our education stands in the way of development, instead of fostering it. 14. Resistance-change is usually resisted as people tend to prefer the comfort zone where things are cosy, predictable and desirable. When anything new is introduced that threatens the present security or rocks the status quo, people naturally tend to put up a shield and front. As a new comer in an organisation, you should watch out for this and ensure you know who is who and in what area they wield influence. A classic example of resistance is that recorded in the book of Nehemiah. There we read of people that realised that they were in ruins, disgrace and desperately needed to regroup. Led by the burdened Nehemiah from the Babylonian kings’ palace, they resolved to undertake the rebuilding of the city of Jerusalem, commencing with the walls. Noble as this work was, some people, namely Sanballat and Tobiah, opposed the work. They marshalled all arguments to put this work to a halt and for a season they succeeded. But since all the 284
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necessary hind groundwork had been done, the work recommenced to the great fury of the opposers. Since their attempts were thwarted, they used every tangible verbal weapon at their disposal. But why were they thus opposed? Many answers have and can be advanced but the wordsmith thinks the answer lies at the power point. For the first time in many years, some new unprecedented work was commenced in favour of the vulnerable Jews. Since Sanballat and Tobiah were Governor and deputy of that land, they felt their hold on power was threatened, hence the opposition. World Vision Zambia has gone through multiple breathe taking changes which have naturally generated resistance. For instance when RAPIDS or the supply chain projects were introduced, what dust they raised! Generally, once ones’ turf is invaded, there is a tendency to retaliate in some way or other. 15. Crippling words from workmates and friends. For some unknown reason, apart from human imperfection, people tend to fracture each other. They do this by being malicious, gossipers, envious and all those negative vices. As a result of these negative traits, they tend to generate a negative energy in the atmosphere and go all lengths to prove their point. A case in point was the issue of Sanballat and Tobiah in Nehemiah 2 & 3 in the Bible. We note here a set of indifferent people called the “nobles”. One wonders where their nobility lay but these people first of all resisted the work of rebuilding as highlighted in point 14 above and went further. First, they folded their hands and then spoke scornfully about the workers. They mocked the builders. In the process, some of them (Jewish workers) succumbed to the pressure and grew weary. Many Sanballats and Tobiahs abound today everywhere. You have to diligently and meticulously watch out for these if you are to escape their venom. 16. Performance: Many Zambians assume that once they pass the interview, they will sail fare ever after, but actually, that is when the real hard work begins. Performance is a serious booby trap for the largely laid back and lazy Zambian. A colleague∞ once remarked, and rightly so that the main thing killing Zambians are two “L”s, Laziness and Lying. This hardly needs explanation as we see it all over us from the highest office to the lowest pauper in the land. Instead of using the ∞
Chikondi Phiri, June 2007, Mpika.
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offered opportunity to build they profile by world class out put, many relax and eventually get the boot. Although the person in question may be to blame in the case just quoted, there are cases where the powers that be form a cartel which eventually hounds out some one based on their performance in a given time frame using legitimate ways such as performance appraisals. Watch your back and ensure you are consistently on top of things. I admire the way the South Koreans think and work. The Koreans have long established a culture of hard work and self reliance but now they are now turning to interdependence by fostering the five “imperatives” namely, entrepreneurship, regional integration, global connection, knowledge based and market led. On an individual level, develop a versatile personality that mutates with the time launched from a hard working diving board. Dreaming alone will not do. 17. Character assassination and poisoning: In every organisation, whether large or small, some amount of politics occurs. The levels differ from place to place. Some of it is mild and insignificant while in others it can be lethal and dangerous. Know what type it is in yours and know how to protect your self because you may be struck when you least expect. As earlier hinted upon, countless numbers of people have been poisoned at drinking sprees by their colleagues effectively putting a tomb stone over the tussles. This weapon is common in offices or organisations where people to some extent trust each other but have many unresolved issues. Watch those office teas, drinks or water! The other aspect is character assassination. Countless numbers have been defaced by their colleagues and realise too late. Always mind how you interact and conduct your self. Thus, we have surveyed the strategy instinct building landscape and I am sure you are better equipped than ever before. These attributes are progressively improved upon by constant and repeated use. You must diligently and meticulously nourish them lest they either die or remain stagnant in which case you continue labouring as a reactor rather than a trendsetter. The ensuing Chapter, People Management, should give further insight into some aspects we have covered, though its focus is on strategy. ====================================================== Bibliography
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Accounting, CIMA-January 1998 Allen R Cohen, The portable MBA in Management, 2nd edition, John Wiley & sons 1993 Ankomah Baffour, The Butcher of Congo, new African, October 1999 Bentley Matthew, Farming with fish, Zambian Farmer magazine, March 2003 issue pp 13 Blackhall Sue, The world’s greatest blunders, Octopus publishing group Ltd, 1989 Bower, Bartlett, Uyerterhoeven, and Walter, Business Policy: Managing Strategic Processes, 8th Edition, Richard D. Irwin Brett Michael, Agents of change, Banking World, April 1992, pp49 Cateora R. Philip, International Marketing, 9th edition, 1996, Irwin McGrawHill, Boston, Massachusetts, Burr Ridge, Illinois, Dubuque, Iowa, Madison, Wisconsin Chirwa Clive E, Creating wealth in a weightless economy, The Post, April 8 2007. D’Aubigne Merle J. H, The Reformation in England, Volume 1 & 2, Banner of Truth Trust, 1963 Executive Excellence, 1999 Heller Robert, Managing teams, Dorling Kindersley, London, New York, Sydney, Moscow 1998 New York, New York San Francisco, California St. Louis, Missouri Hoogvelt, Ankie, M. M, The Third world in global development, Macmillan education ltd, 1982 International Association of Book keepers, Employees fear staff, International Book-keeper, August/September 2004
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Kamau John, Why Boutros fell from grace, New African, # 378, October 1999 pp 20 Lee Mark, Developing a marketing strategy, ACCA student newsletter, October 1998 pp 61 Makodza Lackson & Mutaka Davis, Try North-Western, local investors told, Times of Zambia, Wednesday June 13, 2007 pp2 Malanda Jere Regina, Forgotten: Black victims of Hitler’s Germany, new African, October 1999, pp 18 Malemba Brigitte, Revenge served in a glass, The Saturday Standard, April 28, 2007 (Uganda paper) New African, October 1999 issue No. 378 O-Hara-Devereaux Mary & Johansen Robert, GLOBAL WORK: Bridging distance, culture & time, Jossey-Bass Publishers, 1994, San Francisco Olya Opiyo, What was in the mind of mass killer Hui Cho?, The New Vision, April 25, 2007, pp10 Oyelese Yemi, The men behind Lumumba’s death, New African, October 1999, pp8 Pech Khareen, Up, Up and away, New African, October 1999, pp28 Ricks A. David, Blunders in International business, Blackwell publishers Inc, 1993 Shaw John J, Onkvisit Sak, International Marketing: Analysis & strategy, 2nd edition, Prentice Hall, inc, 1993 Shuhuen Su Mary, Chinese whispers, Financial Accountant, May/June 2004, pp23 Sichone C. Billy, (unpublished International Business PhD manuscript, Trinity College and University), 2003
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The Language of Trade: A glossary of international trade terms, office of international information programs, US Department of State Vision Korea Execution Committee, Revitalising the Korean Economy toward the 21st Century, Business Times, December, 1997 pp 27-29 Watts Michael, What is a Market Economy? United States Information Agency, June 1992 Young David, Money trouble, New African, October 1999, pp30
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Chapter Twelve
Emmanuel Baptist church March 2007 with Pastor at the centre “The best organic asset to hand are humans, treasure them” BS People Management No doubt, any talk about organisations, strategy and progress cannot go ahead without mentioning the human element. As earlier intimated, Drucker taught the world to consider people as assets rather than liabilitiesι. In development and environmental circles, human activities are called “anthropogenic activities” because this is derived from the word “anthropology”∨ referring to the study of man. Half the time however, in our planning, we often focus on the financial resources and rarely highlight the need for the right staff as a critical success factor, if not the foremost. Thus, in this chapter, we zero in on the issue of People Management. As some have said, “this function is responsible for the coordination of training programs for staff in the organisation”. This short definition covers a wide scope far much more than just the hiring and firing of people in a given entity, although this aspect is included. Another authority, Flippo defines it as “the planning, organizing, directing, and controlling of procurement, development, compensation, integration, maintenance, and separation of human resources to the end that individual, organisational, and societal objectives are accomplished”¬. This definition is even more comprehensive ι
William Cohen, ‘The greatest Management Teacher in the world’, the May 2007 Stuff of heroes news letter, Volume 5 # 7 ∨ The scientific study of man kind, dealing especially with his origin, development, customs and beliefsComplete Christian Dictionary for the home, school & office, Oasis publishers ¬ Flippo, Personnel Management pp 5
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as it incorporates all elements related to People management such as the management and operative functions. It further clearly shows that at least three entities have a stake in the any undertaking namely the employee, management and society at large. All these three must be adequately satisfied for effective organisational functioning as they confluence in the People manager. It is no wonder that People management has suddenly begun to take a more central role in many firms especially in the huge multinational corporations, industries or the NGO world. Traditionally, this function has been relegated to the corner of the organisation and scarcely been accorded the respect and attention it deserves. In one company, people often wondered why there was a “Directorate” for human resources when all the folks in that department did was hire and fire people! Surely, that is not an every day activity warranting a directorate, they argued. Further more, some even wonder whether there should be any Human resource department at all, assuming that the managers are competent to handle all staff queries. Why not out source, they ask? Nothing could be further from the truth because they forget that apart from hiring, there is the retention, motivation and capacity building of staff, unless the organisation is post-modern, learning and deliberately hires well-orbed, trustworthy approachable managers. Such a blend of managers is hard to come by. Infact an organisation with such a hiring system unconsciously imbibes the idea that there are other organisations that exist to develop staff from which they can poach. We can safely assert that the HR department at the least is non negotiable in large complex organisations for from experience, managers have different strengths and tend to have an unconscious bias or deliberate leaning towards their strong points. They avoid their weak areas at all costs. If confronted with unavoidable adverse circumstances, managers sometimes react inappropriately or adopt the escapist attitude by over delegating. Thus, People management requires more than mere formal academic qualification but counselling skills, emotional intelligence, adept coaching abilities, psychological sensitivity, pro-activeness, intuition, hospitality, approachableness and above all trust worthiness. The average manager tips over at some point where the human resource practitioner plainly sails. We propose a simple diagram to illustrate what makes up People management and then proceed to look at each branch briefly before summing up the whole.
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People management
Personnel Management (Hiring, firing, loans etc)
Human Resources Management (Capacity building, placement etc)
Suggested People Management model
© Billy Sichone 2007
Obviously, our first area of concern is the Human Resource Management (HRM). It is rather confusing to exactly slice hairs on the difference between People and Human Resource Management. Which one is broader or are they the same? To some extent you will have noticed that we have been using Human resources interchangeably with People management, thus contributing to this confusion. For our purpose however, we elect to take People Management as the overarching umbrella term covering HRM and Personnel Management (PM). In looking at this most important function, we start by briefly highlighting the specific functions of HR as: a. Collection of information on training needs One of the primary functions of the HR department is to go beyond attracting the right high calibre staff from the job market but to retain them for better utilisation. To do this, the HR must constantly look out for gaps in the staff establishment. Akin to a coach, the HR acts as a body that integrates people into the organisational fibre following it up by periodic monitoring with a view to either relocate some to an appropriate place or improve their capacities. Thus, the HR collects information (via questionnaires, appraisals, discussions etc) for training to remedy a deficiency or perceived potential felt need. The training need information thus collected is used to plan ahead. b. Planning and organising in-service courses and workshops The second aspect of human resources management is to plan and organise for in-service courses and workshops arising from the collected information in the first point above. The collected information is not merely for academic purposes but for strategic human resource management planning leading to capacity building. If a good analysis system is in place, the organisation has 292
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a high probability of not only motivating people but also of perpetuating the organisations’ market leadership or drastic turn around from near death brushes. The writer has heard of organisations, such as the one referred to in an earlier chapter (The winning organisation) where trainings, workshops or travels are planned at least one year in advance there by forestalling any panic frenzies that often bug many firms. Once the organising is done, capacity building commences. Capacity building relates to fostering work related skills and competences by training, exposing or providing staff with opportunity to improve their ability to do things in a given work area. Others have defined it as “the process of developing a person’s capacity in a particular set of work-related or functional skills”∅ This leads to efficiency, effectiveness and saving in the long run. The capacity building takes place in different ways including, informal, on the job and formal. Further more, the capacity building can either be specifically limited to a particular entity or a general purpose skill that enables one to function independently long after they have left the organisation. Ideally and as earlier intimated, capacity building aims at lifting one’s skills, abilities and competence in a given area by stimulating the latent potential to higher levels. In this rapidly changing world, there is need to keep abreast with the times by acquiring the right kind of skills to make the right decisions at the right time. Thus, the Human resource has this arduous and yet honourable duty to ensure staff are continuously adept to take on changing scenes. Further, a well-trained staff team is most likely going to integrate as a team much faster and better, having been moulded into team players and goal getters. Modern management trends suggest that continuous training proves cheaper in the long run as people are not only motivated (Knowing that they are more capable and marketable) to stick on but sharpens them into potent swords for market success. Thus, a wrong set of people in HR spells doom as they will not only be unable to spot talent for sharpening but may go right against the organisational strategic grain. c. Evaluation of courses and preparation of annual reports. The third and final aspect for our discussion purposes entails looking back to see whether the organisational efforts were on target, met organisational goals and in keeping with the individual career progression aspirations. Historically, organisations whole-heartedly took it upon themselves to design and promote an individuals’ career path but in recent years, this has fast given way to the individuals themselves etching it out more actively. ∅
Mpika ADP (World Vision Zambia) Provisional Design Document (PDD) glossary pp V 2006
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The individual rather than the corporation is in the driving sit. That not withstanding, the organisation still plays some part in career development as long as the initiative taken is in keeping with the overall goal congruence. If it is in line with one’s job description and affordable, why not? The evaluation methods vary from questionnaires, post training reports, performance appraisals or observable competence improvements as the case may be. Thus, the HR should not content or restrict it self in providing training only but must thirst to see tangible results arising from the resources spent. This calls for diligent monitoring and evaluation with the view to modify or strengthen the weaker points as well as identify new outstanding gaps. Having analysed the feed back, the HR generates periodic reports high lighting the out puts, impacts and outcomes observed in that period, not forgetting the challenges and recommendations. A documented proposed strategic direction is a good proactive step in the right direction. Some organisations dub their Human resource departments as “HR & Administration Directorate”. This is basically the usual HR function with an extended responsibility to handle administrative matters and includes: a. Effective management & development of human resources for efficient and effective performance of the entity b. Establishing & maintaining an efficient consultative mechanism within the organisation for improved flow of information. c. Providing efficient and effective administrative and logistical support service for enhanced performance, and d. Providing & disseminating information on the operations of the entity in order to enhance public awareness. From the fore going, we observe that the only difference from our earlier birds’ eye view above to the “HR & Administration” is point c. although we can safely say that all other points are in an expanded fashion. What are some of the critical qualities of an ideal human resource practitioner? The following are non-negotiable: (i) A deep appreciation, sensitivity and understanding of the local context including the labour laws, people and to some extent, the psychology and culture of the organisation. (ii) Be able to competently handle selection and recruitment matters. 294
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(iii) Able to implement a performance management system. (iv) Able to accurately develop and use a training needs analysis tool/system. (v) Develop a comprehensive staff development plan/program. (vi) Able to proactively develop a training plan over a given course of time. (vii) An adept development and counselling person. (viii) Competently able to implement change management programmes. (viv) Excellent employee relations/ a people person. Should be able to coach/empower & encourage for performance so that weaker staff are helped in all areas. Stronger ones should also be applauded and encouraged on. The HR person must professionally wiggle his/her way into people’s lives. (IX) Deeply understands the disciplinary processes as stipulated in the policy and in accord with the extant laws of the land. (XI) Have a sound industrial relations base, knowledge of the processes, union issues, litigation etc. (XII) Able to effectively contribute to or formulate and interpret an employee manual/policy. (XII) Should maintain high confidentiality and integrity. (XIII) Have an intelligent grasp and appreciation of the payroll, payroll system-how the approved soft ware works. (XIV) Team player and yet miles ahead of the pack. (XV) Be conversant with the compensation systems on the market and consequently be able to develop a competitive compensation package for the organisation.
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As will be evident, most of these traits must be present in the Personnel Manager as well. So much then for the broad HR view, we now proceed to consider the Personnel management element, derived from the broader umbrella of People Management. Briefly, Personnel Management specifically concerns it self with the famous hiring and firing of people. It welcomes some one and bids them adios when the chips fall down. Further more, this function looks at the staff welfare, performance (against set objectives), promotions, demotions, discipline, transfers, loan applications, leave and long service issues⌡. In other words, where as HR focuses on capacity building and efficient use of staff, PM deals with the legal aspects, procedures, and other related issues immediately affecting the individual in the course of service as well as at the separation stage. This entails that the Personnel officer must of necessity have a firm grasp of the extant local labour laws, policy issues, staff placements, payroll issues e.g. preparation etc (in some organisations) as well as ensure all the operational “gears are up and running”. For a long time, Zambians’ labour rights have been violated with impunity being worsened with the advent of the investors who do what ever they please and some how get away with it. It is an even more shocking thing especially when the head of State is a lawyer of high standing! One would have expected better employee treatment and legal compliance. In most of these unfortunate cases, had they hired qualified People/HR management practitioners, perhaps things would have been far different. It is gratifying that relevant bodies are now seriously taking up the matter. But good personnel practices do not need a revolver pointed to our necks before we comply, they are for the good of every one, investor and native alike. Once well treated, these selfsame natives are good will ambassadors to ten other friends who come and buy from you, thus supporting your business. The strategic eye foresees all this and much more, long before any backlash returns to haunt them. As already intimated, it would be prudent to master some of the critical issues before engaging employees. In Zambia, a number of legal instruments are to be imbibed if an entity is to avoid needless litigations from various government and private wings e.g. Legal resource foundation, the courts etc.
⌡
Refer to: Annual report for 2002 Ministry of Science, Technology and Vocational Training Zambia pp2
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Below are the major labour laws as given by the Zambian Ministry of Labour and Social Security∴: a. Employment Act Cap 268 The Zambian law has been evolving over the years as we move away from the British standard left at Independence. By and large, that law delineated what was due to the African, Asian and Colonialists. It was to a great extent based on the British labour law though greatly favouring the whites. After that, there have been several revisions especially in recent years as the Labour relations take a more recognizable centre stage. The laws are now more contextualised and reflect the obtaining situation, though more still remains yet to be done. The Zambia Institute of Human Resource Management, a professional regulatory body (established as an act of Parliament # 11, 1997) has made many valuable contributions some of which have weaved their way into Parliament and enacted into law. The employment act is a pivotal law as it deals with many issues in a broad sense as relates to the employment contract, conditions, terms and references, termination, separation and to some extent, the recourse action in the event of a dispute. In short, this laws’ objective is to provide a legal framework for employment relationships between employee and employer. This law, first enacted soon after independence (1965) has had several revisions since, the last amendment being in 1997 to ensure the law complies with the liberalized economy. The Human Resource Manager has no option but to acquaint themselves with this critical law for effective and smooth labour relations. b. Industrial and Labour relations Act Cap 269 As in all groupings of people, disputes are bound to be there. Differences arise from various factors ranging from wrong perceptions, unshared goals, unfair treatment of staff, poor working conditions, favouritism, corruption, bad or weak labour policies among many. In Zambia, most of the disputes centre around money. The usual issues include the “animal farm” disputes ∴
Source: Labour legislation in Zambia, a paper presented to the Zambia Institute of Human resources Management workshop-Lusaka by J.H Kabwe, Assistant Labour commissioner, 14th December 2000, Garden House Hotel
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in terms of work conditions, remuneration or incentives. Sadly, in many firms, the working conditions gap between the top brass and the shop floor workers is as wide as the sea. One wonders whether they work for the same employer. On pay day, one goes home with a sack of money while another scarcely has any money to get a one off bus ride home. Even in times of corporate financial difficulties, the top brass always award them selves hefty perks while the rest are commanded to “tighten their belts” beyond the last belt hole.
ILO Trade union leaders and members strategising Thus, this law offers a plat form for collective bargaining as relates to the Trade unions and the employers. It stipulates the steps to be followed in the said process and what course of action to take in the event of a deadlock, stalemate or dispute. Enacted in 1993 in the light of the liberalised economy, this law, like the employment act was last amended in 1997 guaranteeing, among many rights, the freedom of association. It is interesting to note though that some developed countries like Japan have hitherto not had labour unions at all. This is interesting chemistry worth curiously enquiring into. As for the British inherited legal system like Zambia’s, we cannot avoid the Unions. c. Employment (Special provision) Act Cap 270 Apart from the earlier employment Act of 1965, another law was passed to deal with special cases, especially in times such as state of emergency where the President assumes most of the powers to 298
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act by decree for the good of the nation. It was very active in the twenty seven year state of emergency during the Kaunda regime. A detailed treatment of this law is beyond the scope of this book but the reader does well to look it up with the Government Printers for a hard copy but suffice it to say that the use of this law is restricted to special critical circumstances. d. Worker’s compensation Act Cap 271 As people work, especially in high risky jobs, accidents are bound to happen. In the event of an accident in the course of duty, leading to a situation where some one is permanently incapacitated, that person must be compensated. This is to be done by a compensation fund, formerly Work mans’ compensation fund. Ideally, all employers are to remit a periodic contribution to this fund that is then reverted to when need arises. Although an act of parliament, the fund presently does not seem to function efficiently perhaps due to poor remittance patterns. The other reason could be very low rates. That not with standing, in an ideal situation, the compensation act provides for compensation for occupational accidents and disabilities and is ideally to be an excellent back up for one’s misfortune. e. Employment of young persons and children’s act Cap 274 Internationally, child labour has become a major area of concern as this constitutes an abuse of the child’s rights. Instead of enjoying a holistic good quality life that includes play and education, children are impelled to work to earn a living or indeed support their families. In some cases, they even abandon school in pursuit of the meagre unsustainable farthing. The Zambian law has something to say on the illegality of this practice such as the minimum age (15 years internationally) and type of work.
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Post ILO Under age children engaged in ‘Streetism’ or working in a Tobacco Factory The law provides for the protection of young persons in the field of employment in hazardous or injurious situations. Worst examples of child labour common in Zambia include Prostitution, streetism (selling & living on the streets), stone crushing, quarrying etc. Note that child labour is different from child work where the child is taught survival skills. Child labour refers to the coercive, strenuous, slave work conditions with an egocentric profit motive on the part of the employer. HR Managers do well to master this law lest it has terrible ramifications. A read up of the UN’s convention on the Rights of the child is also instructive on that score. f. Minimum wages and conditions of employment Act Cap 276 This law, although very potent in the second republic, provides an avenue where minimum wages set by the State are observed. This law compels all employers in the country to give the stipulated minimum or above so that all people receive a descent wage. At one point, it was around K 268, 000 per month though many companies, especially international investors were either sticking to this bare minimum or were far below. In the absence of an official poverty datum line, it is difficult to come up with an intelligent figure. It is made worse in turbulent economic times when inflation or currency rate runs amok. The K 268,000 is far below the breadbasket for a family of six as at May 2007 which
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ran around K 516,000∇. Who supplements the deficit? This calls for an ingenuity and broad thinking to narrow the gap other wise this is fertile ground for corruption. Enacted in 1982, this law provides the State with power to intervene in the determination of the minimum wages and conditions of employment in circumstances where collective bargaining is not possible or has failed. If it has not been amended since, there may be urgent need so that it reflects the current market economy scenario. Then, there could be fewer headaches from the uncaring employers, foreign or local investor alike. g. Factories Act Cap 441 In the times of the massive parastatal conglomerates, there was a need to have specific laws that dealt with several things that included the occupational safety and health conditions in the factories as well as at construction sites. In other words, this law ensures compliance of all factories and construction firms to a healthy, safe conducive and palatable working condition for staff. Staff must be provided with the right protective gear while keeping the general environment healthy, to avoid accidents or future terminal repercussions on the employee’s health. It is amazing to observe just how this law is flouted with impunity, especially by some in the foreign investor mining community. The BGRIMMΛ disaster of 2005 comes to mind. How come no supervising foreigners rarely die in those “accidental” blasts? Chances are that they lock the “black Africans” and sit a safe distance away sipping some tea. The writer visited one of these mines some time shortly before the 2006 general elections and found the same old poor safety working conditions, no change even in the face of the frequent tragic fatal accidents in the past. But this abuse is not only limited to the mines, it affects all sectors, even some native ∇
Source: The Post, May 9th 2007 Refer to Nkweto Mfula’s article ‘We want report on explosion’ published in the Zambia Daily Mail of May 14, 2007 where the relatives to the 45 dead miners demanded a report for the explosion cause before the Bigrimms explosives (Bezl) set up a new site. Clearly from the report, the accident report was a nonissue for the Chinese management, what mattered for them was profit. Incidentally, China has one of the worst mine accidents occurrences in the world. One prays that the same spirit does not come to Zambian with these people. Life is sacred. The explosives act enshrined in the laws of Zambia section 205 & 254 of 1995 must be strictly observed and enforced. One imagines what would have happened if it had been a Zambian National who owned that mine, all hell would have broken lose, right from State house! What rank hypocrisy! Λ
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Zambians are guilty of this vice. They lock their workers in inhumane hazardous working environments such as bakeries, factories etc in order to “minimise pilferage”! The spirit of this law is that once there is a breach, recourse to this law should set the record straight. A constant amendment to reflect the present context is ideal. h. National Pension Scheme act # 40 This act paved way for the transformation of the Zambia National Provident Fund (ZNPF) into the National Pension Scheme Authority (NAPSA) that became operational some time in 1998 after the initial ground work had been formalised. Effectively, the scheme is a pension scheme which people turn to when they retire, having contributed to this fund all their working life. Unlike its predecessor, the scheme offers a wide range of products which members have access to after saving for some period of time. The present retirement age is 55 after which a person has liberty to claim a regular pension amount for their up keep. Effectively, the pension scheme act, birthed in 1996 provides for the establishment of a National Pension Scheme for social security in the event of employment loss. Whether it works effectively or not is yet to be ascertained although the scheme vigorously collects monthly contributions. Frequently, the contribution rates are adjusted, one wonders why. There are other acts worth acquainting oneself with, the major ones being: i. j. k. l.
The Apprenticeship Act (Job on training etc) Pensions scheme regulation Act No. 28, 1996 Preferential claims in bankruptcy Act, 1995 and The Zambia Institute of Human resources Management Act No. 11, 1997
The above referred to laws are there to ensure that equity and fairness obtains on the employment field. They are designed to ensure that employer and employee’s interests and rights alike are safe guarded. In short, they act as a regulatory framework from which people operate. Any Human resources practitioner in Zambia must there fore imbibe these tenets or else by surprised by endless unexpected litigation at every turn. Different 302
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countries have different laws and as such, an indigenous legal expert is recommended for the job as part of the overall corporate strategy. It is said that most business owners in Europe dread legal action from their employees . The antidote to this fear is to simply know the law, uphold it and know how far you can go in effecting certain plans. Watch out also for any latest amendments lest you hang on to a long obsolete law! Motivation “All organisations say that people are our greatest asset. Yet few practice what they preach, let alone truly believe it.”, aptly quips Peter Drucker, that legendary Management guru. And yet how so true this assertion!! James A Finkelsteinℑ quotes Drucker in an article called “motivating people. It is a lamentable fact that we have slid into the new millennium with relics of the past still firmly clasped to our “corporate skins! What can be done? How can we handle this hurdle? What parameters can we employ that will help us to fight lethargy and demotivation? Many have undertaken to answer these nagging questions with some measure of success. The starting point is dicey as people respond differently to stimuli depending on many factors such as environment, orientation, tastes, and preferences among many. But before we proceed, it is fitting for us to define what motivation is. Using Kreitner and Kinichi’s definition, it can be stated that motivation includes “Those psychological processes that cause the arousal, direction and persistence of voluntary actions that are goal directed”+ From this definition, it is clear that the factors under consideration are the inward disposition and internal motions that ferment as one is about a task or activity. In a nutshell, we are looking at those parameters that cause someone to feel good, happy, contented and satisfied to do a task. Having briefly defined what motivation is, we now proceed to tackle four critical dimensions namely, Where, who, how, and why as advocated by some fine writers like Finkelstein.
ℑ +
The International Book keeper magazine August/September 2004 pp 5
Executive Excellence, April 2000 issue pp10. Organizational Behaviour, Kreitner R. and Kinichi A. 4th edition, pp 189 303
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In the first place, for any one to function well, they need to operate in a conducive and palatable environment, i.e. the buildings, office accommodation, furniture, “family” kind of work treatment, freedom to contribute to the company goals and any outer gadgets that make life worthwhile. It must be remembered that the average worker spends over 8 hours daily at the work place and as such must needs find the work place attractive and comfortable otherwise work is reduced to a mere “necessary evil”. In the second place, the worker must have a sense of belonging in the company, popularly known as “a sense of community” these latter days. As new employees join a company, they come with expectations that are either fulfilled or drastically altered, in which case many feel disillusioned. In other words, the company culture must be one that is realistic, open, clear and framed in such a way that mutual trust and teamwork harmoniously co-exist. The culture of two merging companies is especially tried and tested when two hitherto different work forces converge, obviously causing “sparks” which need to be extinguished through the evolution of a new culture. In a nutshell, “culture is how people interact at work, how they support the mission, how they regard each other, how they work together toward goals, and how they treat customers.”ϒ This definition is all encompassing and deals with all the salient features of a corporate culture. If the right culture is absent, it leads to losses and ultimate company failure. In the long run people become egocentric rather than corporate goal focused. They even flee in some cases. Thus, good supportive and progressive corporate culture significantly contributes to staff retention rates as well as diversity and plugs high employee turnover. It is also worth noting that most of the new employees quit at the induction stage before they get “connected” to the cultural server but if they successfully go past that stage, their propensity to quit significantly diminishes. The third parameter that rears its head is that of development. This is the “how” of the work place. Workers must be given the skills to handle their tasks, through prolonged training. If strategies are clearly set, pursued to the end through appropriately trained staff, then some positive progress is registered. If the “how” is not clear in peoples’ minds, they feel incapacitated, directionless and demotivated. To the contrary, if they are capacitated and involved in some way from the planning stage, as well as ϒ
“Motivating people”, Executive Excellence magazine, April 2000 issue pp10 304
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kept abreast with the latest developments, they will “own the goal” and wholeheartedly support it to the end. In other words, the company must plan, train staff, and ensure that these appropriated abilities are utilised rightly. Short and squeezed training sessions are not recommended for “practice makes perfect” as that quaint old saying goes. People need to internalise what they learn and only by constant practice do they perfect their skills. Sadly, many institutions are guilty of hurried trainings in the quest to save some cash. On the other hand, it is worth noting that whereas in the past, enterprises took the sole responsibility to train and educate, this has drastically changed as part of the new ‘social contract’ as propagated by some quarters such as the Korean Vision. The responsibility therefore now heavily rests on the individual actively taking part in shaping their destiny. Most employers today only supplement an individual’s efforts unless the entity specifically wants that skill developed and internalised in the organisation. The times have drastically changed the wind direction. The presupposition in that case then is that the staff cadres earn enough money to foot a good portion of their study and training costs, short of which encourages ‘human capital flight’. The fourth dimension is the all-time famous reward system. Many reward systems have appeared on the horizon, some fair while others horribly inhuman! The universal one which has stood the test of time is that of compensating at the end of the service or through periodic performance reviews after which one is paid some token of appreciation. In as much as this method has worked well in the past, the present generation is more individualistic and favours “Immediate gratification” compensation. The worker of today is interested in seeing instant tangible results as well as investing in the future, to secure the retirement. Unlike in the past, when one could bank on the retirement package and there after run “broke” as soon as the cash is exhausted, today’s worker wants immediate tangible results. In other words, immediate cash value is more ideal for the modern day worker called the “X generation worker”. Interestingly, not only is cash crucial to motivate a worker, time off and the psychic gratification are paramount today. In this hurried hustle and bustle generation, one appreciates some time off work to pursue other refreshing activities (Such as family life, holiday, set up own business etc) and then return, having “recharged the brain cells”. Another dimension worth considering is the deliberate policy to give first priority to current staff for promotion before offering it to the outside world. This motivates staff to keep on board, work harder and feel part of the whole organization. This is one way of awarding staff who have 305
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been around through out the changing seasons of corporate life. Not only does this motivate them but also builds synergy as much less resources will be spent in orienting newly recruited appointees. Granted that the outside will bring fresh ideas thereby enriching the organization, the extant staff too have dreams and ideas that need venting out once availed an opportunity. The motivational sources vary from place to place but the points advanced above are key. Depending on one’s hind orientation towards work, they either are motivated to work by reward or inherently think work is good in and of it self for them and brings about honour. The English Puritans and early Protestants strongly believed that work was inherently good and that alone motivated them to labour on. No wonder, generally places where Protestantism once thrived, radical development pace has been recorded. Consider England, USA, Germany, Switzerland and wherever Protestantism flourished, there is a great difference compared to elsewhere. John Calvin the reformer is still remembered in Switzerland to this day. The good hard working attitude we see today is but a relic from the past glorious Puritan era. McGregor’s X & Y theories come to the fore here. Thus, we have unveiled what constitutes motivation as advanced by other people in today’s working environment. A further point worth mentioning is that in a context like Zambia, the take home pay is to a large extent a huge motivating factor closely followed by cordial relations and good mutual treatment of employee and employer. The 21st century worker is looking for this four-fold dimension to work effectively. As more managers pick up these jewels and pragmatically implement them, I am not afraid of the result! An interview with a modern management practitioner with BP at one time is handy at this stage:
INTERVIEW WITH MR. PETER NJOBVU ON TQM AND PEOPLE MANAGEMENT 29.01.99, NDOLA. Introduction An interview was carried out with Mr Peter Njobvu of BP on the 29.01.99 with a view to find out the Total Quality Management (TQM) & People Management practices at BP and to what extent TQM has permeated 306
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through the entire BP network. At the interview time, Mr Njobvu held both the Association of Certified Chartered Accountants (ACCA) & the Chartered Institute of Management Accountants (CIMA) qualifications and was the senior Depot Manager in the northern part of Zambia. He has since relocated to Cape Town, South Africa to take up a more senior and challenging job. By that token, he travels extensively in the BP network. During his student days he was several times elected the best overall student world over and at one time was the best Management Accountant in BP in the Southern Hemisphere. Peter is indeed an international quality leader. QUESTIONS. B. What, in your own words, is Management in general. P. From the textbook? Management is basically about coordinating, controlling and directing resources to a predetermined goal. So, it is the Marshalling of these resources towards a specific goal put down in the budget. Apart from Marshalling, there is a lot more and more emphasis on people management in these days. B. What are the current management trends today? P. In the US, where individual performance is valued, there is a shift to try and unlock the potential in the individual. The belief is that if you take care of an individual, then you will have taken care of the results. This will mean that the care is both at work and beyond, ensuring that the home conditions are made as comfortable as possible so that the worker does not spend time thinking of how to survive but rather concentrates on one thing. This trend is coming in Zambia though at a slow pace. In BP, we realize this and are at the forefront implementing modern management practices that will motivate and unleash the hidden potential within a person. This can be done in various ways such as rewarding, complementing or continuous training of staff so that they can meet the challenges that lie in the way. As such, this builds capacity and greatly motivates people so that they do their best. B. Why the emphasis on people management? P. Like I said, people are viewed as the most important asset of any organization and if they are satisfied, they will improve in their output. This means taking care of both their welfare and environment in which they 307
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operate. People say that these days, the buzzword is 'Team Work', and this has been a buzzword for sometime now in the management circles and for a good reason. They are saying that the original hierarchical structure is in efficient and must be broken down to give way to a learning approach. B. Do you think that Team Work is the best approach to management and why? P. For a long time to come, we are yet to find a mode of management that is better than teamwork because in a team setting, all the people are qualified with one leader who is basically a boss but does not come out as such but rather is a team player as well. In the Accounting firms for example, all the members are qualified professionals so that none is above the other but as they share ideas, the output is by far more and richer than if one person were to work. Teamwork emphasizes the fact that people should be allowed to express themselves, brainstorm and bring up all sorts of ideas. There is a belief that 100 lousy ideas are better than none. If you get ideas from all sorts of people, including those on the floor, you will get great ideas. B. What is your current job? P. I am a Senior Depot Manager - north managing the northern operations though I do not manage a deport here in Ndola, as such, I supervise depots in Mansa, Kasama, Mpika and many other areas in the north. I also handle the public relations aspect as well. B. So that sounds like a lot of work, how do you manage? P. I have a team under me, with whom I seat, plan, brainstorm and work out all things. I have Engineers, Accountants and all sorts of staff under me. B. Has the teamwork culture permeated into BP? How successful and applicable has it been, if at all? (To what extent) P. Teamwork is applicable to every organization and BP as an organization emphasizes so much on teamwork that when they are employing new staff, there will be an assessment on their teamwork abilities. Teamwork hasn't been in Zambia a long time but in European countries, it has been practiced for quite a while. In Africa, we still have a long way to go, as we still have problems with it probably due to culture and background. And for that 308
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reason, teamwork doesn't seem to be working too well. We still have a group on top that can't be touched while the operatives in the middle to fix below are forced to receive commands. As a result you have a culture where people will not accept correction or advice but busy to please the boss. As BP, we are trying to discourage it. Various efforts have been made such as shared ideas to get the methods of best practice. I have attended some in the region and they continue to take place, they come up with really good ideas. B. How do they respond to the Team/ TQM approach? P. Very well although I sometimes have problems due to the hangovers people have from the past. They always want to revert back to the past practices because they felt they have always done the job in a particular way. The new methods seem to interfere and seem a bit more difficult. It is extremely difficult to change them over a short period of time, but what I have done positively is to occasionally go down on the work floor and find people in there natural habitat and where possible, suggest ways of executing a process better. I am careful not to seem to impose things by asking them "Don't you think it could be done better this way?" In this way, I deliberately breakaway from the traditional box mentality where you impose your own ideas on staff who, in the final analysis don’t own the process as a result. I go almost one and a half hours every day to the shop floor to interact with people and in that way foster teamwork. B. That's very nice, would you call it.... management by walking around.....?. How often do you do this? P. Yes, if you like, it is very effective and I make sure that I go out on the shop floor for one and a half hour everyday just to familiarize and acquaint myself with people who may ordinarily feel uncomfortable to visit me at the office. Then we are dealing with people on a personal basis rather than giving instructions from the top. In the end, this opens them up and you get better results. B. Now, although we have already alluded to it, what, in your own words, is TQM? P. What I think is that TQM is the process of management where you affirm that our processes and procedures guarantee almost that at the end of the chain or production line we are going to be churning out high quality 309
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products increasing performance defect reduced to zero. The emphasis of TQM is really on procedure upon procedure not an individual person. In other words, other than finding out who went wrong, TQM emphasizes that we find out whether the processes are correct. The system must ensure that no defect is introduced or allowed to exist. B. What is the importance of TQM? P. It ensures that there is no defect or redoing of something and this is cheaper. B. Is TQM practiced in BP Zambia? What about in South Africa and Europe? P. In Zambia, we haven't really applied TQM, I think, to that level where we can say that we have done it, although at our plant in Kitwe, we are running a system which more or less on the lines of TQM, an ISO based system international standard organisation (ISO 9003). What ISO 9003 basically deals with is that what ever you are doing must be documented in such a way that if someone comes with no previous connection, they will be able to follow through without a problem just by observing what you are doing, you should look it up and ask whether it is ok. These processes are designed in such a way that at the end of the day they eliminate chances of defect, ensuring that what ever is being churned out is an assured perfect product, with very little or normal conformance to standards. B. To what extent is it practiced in BP? P. We are still trying to cultivate it into our system. B. How long do you envision it will take root in Zambia? P. It will take sometime in Zambia for it to reach international levels but we are determined to foster its development, if we are to remain competitive. B. Now, we are running short of time, but could you briefly tell us some of the hurdles you have encountered in Implementing TQM? P. The problems are always on the attitude of people who think the procedures are just too long and are tempted to use short cuts to achieve the 310
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same goals. The problems are basically attitudes. B. What are the goals of BP in the coming years? P. The company's immediate vision is as follows: Financially, we hope to double the 1997 profits by the year 2002. But then in terms of quality health and safety issues, BP wants to be like they say, "Our policy is to be friendly, cheap, high quality and do no harm to people, no damage to the environment". So in terms of what we want to do in health, safety and environment, there is the environment audit standard that we are following. We are also going for another environment standard that is to do with environment management from ISO, and as BP we are saying, we have to produce petroleum products that are clean to the environment. Our motto is "Energy and Sustainable increase. B. Finally, on a personal note, you have done both the ACCA and CIMA, which one of the two emphasizes TQM more? P. Objectively, CIMA leans towards management than ACCA and therefore by the same token, you have more of TQM coming in CIMA. Although both of them refer to TQM. B. Thank you Peter, for giving me this interview despite the early hour I came. P. The pleasure was mine. Practical ways to motivate people Motivation is a dicey but unavoidable concept. If you want world class results, then consider seriously, the issue of motivation both on yourself and teams around you. Great feats have been achieved by highly motivated and focused teams such that when they retrospectively look back, some of them wonder what drove them all the way. The good thing is that they feel contented and fulfilled about their achievements especially if it is motivation towards a good cause. Motivation has to do with inward determination, ardour, zeal, warmth and drive to do or achieve something. Different stimuli motivate people in different ways. Self-starters usually have a latent burning issue within their bones that moves them to do far much more than the average person would. The itching desire is burning, as it were, in their 311
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bones and they will not rest until their objective is met. The vast majority however need to be motivated from without or by some external stimuli. In the corporate world, people enter jobs moved by various motives among them includes career development, good staff welfare, job security as well the after effects. If any of these are missing, people still get on board with a view to take the earliest life boat out of the Titanic ship. Maslow thought through issues and crytalised his thinking into what has now come to be known as “Maslows’ hierarchy of needs” This paradigm or frame work basically looks at the various factors that affect a person’s motivation and thus influence the way they behave, respond or do things. By and large, this is a good working frame from which premise one can dive into the motivation theories’ ocean. Below, we reproduce Maslow’s pyramid highlighting what we have alluded to: Maslow’s hierarchy of needs1 Self actualization
estee Social
Basic lowest level need
Safety
Physiological
This model was mooted by an American psychologist who carried out research to differentiate human needs. His findings are crystallized below: Self actualization This is the highest form of self fulfilment after the lower needs are met. Few actually reach this level as they spend most of their time trying to attain the other more basic needs. Esteem needs People want to feel accepted, recognized, valued and appreciated. In the absence of that, they tend to have a lower self image and hardly move on to 1
Refer to “Organization theory” by P Bryans and T.P Cronin. Mitchell Beazley Publishers 1983
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realizes their full potential. Proper self worth (esteem) is critical to achieve maximum potential. Esteem needs refer to self perception as well as what others think about you. Social needs This refers to among many things, the need to feel loved, needed and a sense of belonging in society. This shows itself in many ways hence the social classes we have in the world. Safety/security needs People need to feel safe before they ascend to higher levels. Among the security they need is that of their lives, food and job security etc. In a nutshell, it is the desire for security from any threats or danger. Physiological needs This refers to those basic survival needs without which the organism dies. Some of these include air, food, sleep and water. A person at this stage is extremely vulnerable and will not concentrate on anything else that does not bring tangible results to mitigate their immediate need. Going by what Maslow postulated, it is evident that we need to know at what stage people are at if we are to effectively motivate them to the next level. If we mishandle this, we should not be surprised if they quit or end up wrecks because they could not handle the drastic shift or simply not meeting their needs. They could not find the right fit. For those in the self actualisation stage, you need to work extra harder to retain them in your organisation as they can easily quit and do something else that they perceive worth while. Those in the lower brackets such as the lowest level (physiological) will not concentrate on anything except the basic bread and butter issues. By that token, they are vulnerable and easily manipulated by those in the highest level. That explains why the foreign Investors and developed nations easily get away with many atrocities because of the wide gap between them and those that would administer the law or worse still those that have no recourse to other empowering factors such as assets, lawyer, equitable legal system etc because they cannot afford. In the organisation, the top brass usually are at another level compared with the shop floor operatives and perceive things from a totally different perspective. That is why the CEO can get K 89 million for holiday allowance in one month while a casual worker gets K 1 million in a year as his/her total annual income. The one blows the said K 89 million in a week 313
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while the other struggles to keep within budget for a year.♣ This also explains why people fail to accept and adjust when they suddenly loose their lifeline such as a high profile job and thus become insane or soon die of depression. The drastic drop is just too much to bear. As for the confirmed pauper, they are not afraid of falling (because they are already down any way!) and easily improvise coping mechanisms thereby surviving longer than one would expect. Next time you see a once big “Bwana” collapse and die even if they seem fairly above average, know that they have fallen down the hierarchy and failed to adjust. The suffering was too much and suddenly felt vulnerable, rejected by the system, society, friends as well as their selfesteem crushed beyond their imagination. The strategist anticipates, foresees all these issues and works while it is day ensuring that all future potential hazards are forestalled long before hand. In addition, the post-modern team leader anticipates these challenges and inspires his followers to proactively prepare for the rainy day. He also suggests great and brilliant ideas to his colleagues so that no one leaves empty handed when their contract comes to an abrupt end or expiry. S/he puts success in his people’s way. Further more, the leader makes people buy into the organisational goals, the benefits and how the milk will continue to flow if they worked well and harder. In other words, the leader does not only limit himself to the official matters but also wisely touches the private lives of people urging them to redeem the time, as it were. By way of summary, we can safely state that we need to know exactly what motivates people, when, where and how lest we prescribe the wrong remedy. Is it money, promotion, recognition, travel, training or individual/shared accomplishments? The strategic thinker prefers security above comfort. The Lincoln company case below is a good learning point for us with regard to motivation. Let us draw some principles to apply in our own local scenario, bearing in mind that each context is unique and demands different approaches:
♣
Refer to the Post newspaper of 01/03/07 pp 2 titled “Chupa urges govt to check mismanagement at ZESCO” as an example of what we here advance. The said organization was on its knees for lack of financial resources not even able to offer basic core service while the top brass were making away with huge sums of money because it was “in the conditions of service” Who would understand such warped thinking?
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The Lincoln Electric Company
Of the many successful companies that have hit the business horizon, none perhaps has been so specially blessed to have a consistently growing loyalty and prosperity of all its employees as The Lincoln Electric Company⊇. It has been around for nigh a hundred years and all these years have been years of growth, expansion and strategic placing of the company. Lincoln company is an excellent place to work at though it is not for the faint hearted who want to make a quick buck and dash off, rather it is for the resilient and hard working. Talking about the Lincoln Company today without the mention of the pioneers of this entity would be gross injustice. Due honour must be given. We will look at the two famous Lincoln brothers who graced the company horizon in those earlier days and put the company firmly on its rails, from which it has never departed. Who were these men, if we may ask? What did they do and why did they act as they did? The two were John C Lincoln and his brother James Lincoln. John initially begun the company in 1895 without his brother and ran it until 1907, a period of thirteen years in which time he, John, perfected the trade upon which the company was hereafter based. He was a technical genius and as such, received over 50 patents for various apparatus inventions he developed. His natural ability so perfected over the years such that by the time James joined him, the unique company products were fairly established on the market. But technical ability alone is not enough these days, John needed some one who had a management acumen, which was well packaged in his brother, James. We would not be far from the truth to assume that when James stepped onto the company premises, he immediately swung into action regarding the life long system reforms. The said reforms were so thorough that by the time the man left office, his ghost lingered in the company and has never been exorcised since. The fact that his principles have never been altered or adjusted for over 30 years shows how timeless, excellent and useful his character must have been. His writings too, are also replete with evidence that James was a rugged individualist who strongly believed that anything was possible for any one provided they elected to ⊇
This company is in the USA
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work hard. These principles are reflected in the philosophies and practices at the company. Thus, we have in a measure successfully sketched brief biographies of the two star pioneers, how excellent these men were!- each in his own right. But what did they do that has consistently propelled Lincoln Company to the market apex all these years? What are the classic management and employee approaches they have utilised that we may draw a leaf? In answering the question, it is fitting for us to state that arriving at a workable management practice takes time. Were we to judge the Lincoln management methods against the modern management trends, they would be somewhat archaic, but these are the very management practices that have fought and won battles for the company. The approach to the organisation is that the executives have endeavoured to keep the “small company” feeling, akin to that at the Microsoft except that here, the individual output matters more. In keeping with the resolve of being small, this has ensured that the company remains agile in that the products are of consistently high and improving quality while inversely reducing costs. It is a firm belief that the costs and prices must be kept as low as possible. This means that as many ways of cost saving have been devised to reduce cost such as maintaining simple but safe structures and furniture, designing and making own machines and having a “just in time” minimum inventory stock. Further, total quality has been the heartbeat because this ensures nigh zero defect products, which in effect pays back over time. The second key to the organisational approach is the strict adherence to the company objectives to which everyone must subscribe. This keeps the company focused on the distinctive competence and no one acts “ultra vires”. The company, unlike many modern firms, is highly centralised in decision making and yet, ironically, the two chief executives are among the most accessible to every one in the company. The person with the lowest job has as much personal attention from the top as anybody else. This is seen as the executives walk around the company floor, people cheerfully talk to them with no dread, and also in the eating and parking places, no special places are reserved. Now this is unique! In the same breath, it means that the decisions are generally top-down though maximum communication is maintained. For example, the Chairman and President must both know what is going on to the minutest detail so that they can have a hand in making any decision.
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Having said the above, we hasten to say that Lincoln Company has a human face to it as well. The company practices are designed in such a way as to motivate the worker towards maximum output. This is seen in the incentive parameters which reward individuals according to the output, time spent, initiative and new ideas brought into the company. In this way, many feel attached to their jobs and will willingly work long hours so as to gain that extra buck. At Lincoln, it can be truly said that “Time is money”! Let it be noted that this arrangement makes people need minimum supervision because of the created conducive working environment guaranteeing freedom of expression, individual importance and worth. Another important motivational factor has been the preference of internal promotions, tapping local talent from those espousing the same company goals. This approach has caused the hard working sort to amass enough personal assets corresponding to their output. This feels good and highly motivates. Furthermore, the company pays handsome bonuses at the end of every profitable year as well as ensures that the employees are given permanent jobs, thus creating security and not stifling creativity or innovation. As a result of the aforementioned approaches, the work culture at Lincoln is that people are hard working, diligent, have high morale, are cost conscious, aim for speedy high quality product and service output, have little idle time and are their own supervisors. If they relax, it means less pay, the reverse being equally true. These factors have kept Lincoln buoyant over the years. We have no doubt that the above scribbled excellent picture about the past waters many mouths but our concern now shifts to the future as to how these past successes will be maintained. What safety gadgets will be inserted to ensure sustained market leadership? The following strategic moves are suggested. In the first place, the cost cutting methods through new ideas and new techniques must continue to thrive. In the second place, quality must continue to be intertwined into all the products taking particular care that the external customer sets the pace. The internal customer (i.e. the employee) must also be satisfied continuously too. Thirdly, the company must ensure it curves out a niche which competitors (old or new) will not easily copy. Further more, new innovations and products should be placed on the market way ahead of competitors. Lincoln should be proactive rather than reactive, emerging as the trendsetter. Also, the company must meticulously watch out for emerging and established competitors who may undercut Lincoln and take over the market, for many market leaders in other markets have realised too late that a once puny rival had overtaken them. Speedy and timely quality service must seal up the strategic manoeuvres of tomorrows’ Lincoln 317
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company. Always remember to be customer focused in all endeavours. Both the internal and external customers deserve meticulous personal attention If I were asked to make some recommendations to Mr Willis, the current President, I would give the following advice; Firstly, the company must continue to remain unwaveringly loyal to the time tested attributes of continuous cost cutting manoeuvres. This is attainable when the Just in time system is strongly engrafted into the company operations, as there will be minimal inventory storage over heads. Secondly, the company must continue to maintain improved high quality goods, and where possible, more innovations and new products launched on the market periodically faster than before because speed is key. These must be according to current customer tastes resulting from frequent market researches. The company must know why people prefer the Lincoln product. Thirdly, the company must invest in modern cutting edge state-of-the-art technology, which will help in keeping ahead of competitors, as well in the making of informed strategic decisions. Fourthly, The Company, while attempting to be innovative, must ensure it keeps its finger on its all time distinctive competences. This is a niche that has been etched out and needs strengthening at all costs. Fifthly, the management must ensure open communication, free personal interaction and minimal structure levels. Many companies have needless onion like elaborate layered structures that breed other corporate vices. In addition to the aforementioned point, bureaucracy and red tape must be fought from all angles, as it has slain its thousands. The “small company” feeling is a great strength and must be jealously guarded, if not fostered. Sixthly, as the company becomes more complex, there may be need to have an organic formal structure and to some extent, the executives must begin to delegate some of the minute details so that they concentrate on the strategic aspects of the company. Decentralisation is the word. Care however must be taken to ensure that slothfulness and bureaucracy does not rear its ugly head killing initiative, which has been the hallmark of the company hitherto. Lastly, the incentive system must be further refined though some time for relaxation must be introduced. Life is not all about work and money. The Lincoln Company approaches to personal motivations can equally work in other companies but this depends on the nature, structure and maturity of the business as well as the established work culture. This motivation system has worked well at Lincoln because the pioneers set the pace and actually lived out what they preached. For example, they were consistently very hard 318
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working all their lives and maintained effective but simple communication with everyone. Also, they strove to know workers by name, which alone, is a powerful motivation to employees. If the personal touch and the ‘Earn as you work” system are absent, the motivation system will not work sustainably. The absence of company wide issue consultation and the autocratic tendencies accounts for the reason why many companies do not follow Lincolns’ example. On the other hand, some view the Lincoln motivation system as strenuous, inconsiderate in the event one is incapacitated and not a sustainable practice although the individual pocket is satisfied. Furthermore, the reward system is designed by the top executives alone, who do not consult or know exactly the stress levels each job evokes within a person. The given reasons suffice for our purposes as to why few companies espouse the Lincoln approach. Having analysed the reasons why very few companies would throw in their weight behind the Lincoln method, we move on to comment on the management practices with respect to the modern trends. The Manager of the year two thousand and beyond is one who is pictured as robust, strategic, team leader/player and not the bossy type but rather, one who considers others as equally critical to the quality output chain. In fact, in modern and post-modern management circles, teamwork is the buzzword and is emphasised far above the individual performance. These trends have been learnt from the Japanese who have employed teamwork effectively which results in high morale and commitment to the company cause. Furthermore, the manger of today is not expected to be autocratic or make all the decisions. Minimum management and informal structures are preferred so that bureaucracy does not creep in nor stifle innovations. Also, this makes the company remain focused, strategic, agile and fluid, thus moving with the times. In addition, employees are expected to contribute ideas, brainstorm and be party to the final decision unlike in the traditional approach where all the decisions were enacted at the top and pushed down for implementation. The top-down approach has not been effective in that the actual implementers on the ground do not identify with or buy into the goal, as decisions are “Pushed down their throats”. The traditional approach largely, has been the adopted practice at Lincoln although some tenets found in it are also found in modern management practices. By that token, we could safely say that the Lincoln style leans on the past in decision making but in some cases also incorporates modern trends. With all due respect to James Lincoln, I think the company ought to shed off certain tendencies, which, in and of them selves may not be wrong, but need to be revisited in the light of 319
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the turbulent business environment as well as complex company status. For example, some decisions ought to be delegated so that the chairman or President devotes him/herself to strategic matters, which will see the company through to the next level. In addition, the time for a formalised hierarchical structure is now ripe, but in the same breath maintaining minimum structure levels and openness lest bureaucracy creeps in to wreck havoc. As I look twenty years hence, I think Lincoln will remain the place I would desire working at as long as the motivation patterns are constantly revised to match the modern trends. Today, there is the realisation that there is more to life than just money, into which we trust, the Lincoln Management will look. Fly on to higher orbs then ye Lincoln company!
Teams and teamwork Nearly every one talks about teams and teamwork in these latter days but very few actually imbibe or let alone believe in it. Many have proclaimed that teamwork has worked for them but as soon as they left the podium, all that they had boasted about crumbled to the ground, why? The reason probably is that they worked with a group rather than a team. A group is more concerned about reporting on one’s sub area to the leader who compiles all the separate reports into one. In a sense, the group focuses on their work area rather than the broader picture that belongs to the leader. A coherent team on the other hand is a developed group that has matured and jointly deals with problem solving, functions as a unit with shared goals, aims and aspirations. Further, a team is interdependent and promotes working in a borderless manner so that the team members cooperate and over lap where necessary ensuring that overall goal is reached. The imaginary departmental walls are demolished giving way to greater team efficiency where they look at things together, process them and churn out joint decisions that nearly everyone in the seven members + or - two team agrees to. In an ideal team, status & power jostling are laid aside paving way for a shared leadership arrangement where the formal leader is viewed as a team player and member. In such a setting, the formal leader’s function is to build an enabling environment where people are free to contribute on any issues without fear of retribution from any one. The end result is better
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quality output, decisions and implementation. It works best in professional self-managing teams. Why are there scarcely any real teams in our day? Many reasons could be summoned but some of them could be: 1. People fear to lose control and power. In traditional settings, people glory in their status and will not willingly give up or share power to be one of the mere regular operatives. The large power distance, especially in Zambia is heralded rather than loathed. 2. Fear of confrontation: A well-developed team entails openness and candidness for the greater good of the organisation. If one does not tow the line, promotes team disintegration, or indeed repeatedly fails to perform, the team members are at liberty to query to the extent of recommending their jettison from the team. 3. High demands of team building. To build a team is demanding and in some cases, back wrecking. You have to be at it continuously, sometimes for years until it begins to form and deliver. To create such a setting involves continuous training, education, interaction, open communication and some monetary resources in some instances. 4. Members’ incompetence, vulnerability and mind set. If a leader is reluctant to develop a team arrangement where it is clearly necessary, chances are that they fear to expose their incompetence. Being in a team makes them feel vulnerable because if they fail to be ahead of the pack, leaders may be embarrassed so they settle for the easier option-position power. The question that still lingers and begs answering is what is the end of teams and when are they ideal? As stated earlier on, teams function well where they are necessary other wise you might as well settle for groups. In settings where the work is highly predictable, procedural and centred around reporting, groups are more appropriate but where a process demands a joint effort, there a right team is non negotiable. Teams spend more time brainstorming, thinking through, sharing ideas and evaluating to arrive at a common decision whereas in a group, the leader is the major goal owner who brings the separate strands together to make one cohesive whole. The major purpose and goal of a team is to promote higher quality output, efficiency, and transparency among many reasons. Building a team takes time but with the right environment, people and clear focus, the team hurtles by leaps and bounds to success.
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Having surveyed the team landscape, we can safely assert that teams are possible to build as long as the motives are right and will definitely pay dividends in the by and by. But before that, it is arduous, restless consistent hard work. Ntota International some time back adopted the team approach to management. Here are some high lights: Teams in Ntota International It is common to talk about teams rather than live them out. The reason, is in part, the nature of teams. In 1999, when Mr Bolingo took over as Country Director of Ntota Zambia, he introduced the team concept, with a rotating regional team leadership. Further, the program managers underwent training from the UNISA relating to leadership. Initially, there was enthusiasm about teamwork but sadly, this zeal died along the way. Very few, if any pockets of teams exist in Ntota Zambia today. The organisation harbours more of groups than teams probably because most of the work is routine and report based. Further, fewer people willingly overlap or have the big picture in view. Clearly, Ntota Zambia has a long way to go to build the modern self-managing teams as most of it seems clutched in traditional management mould though the trend is rapidly changing. We can safely assert that teamwork is possible but the cultural tendencies impeding its flourishing must first be overcome. Teamwork illustrated as relates to communication:
Everywhere, and at every turn, people are talking about teamwork! Whether it is on the assembly line, the office, the battle front, or even in marriage! This is indeed probably the most ideal attribute sought after by every institution today, having taken a leaf from the football team. But what, in the business world, glues all these entities together? What one crucial ingredient is most critical enabling teams to function efficiently even across oceans, yea in far-flung countries? What is it that enabled Neil Armstrong to venture onto the surface of the moon on that 20th July 1969, moon day? I unreservedly assert that it is communication via Information technology (IT)!
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Neil Amstrong NASA But what is in IT that should make it a unifying factor across the globe and beyond? A number of reasons flood the mind but few reasons suffice. For one thing, IT allows a company to keep abreast with the most recent trends and ensures that the institution is on course. As we very well know, Information is the most valuable asset in business today, even superseding mere financial muscle, for, without it (Information), the entity will topple over and disintegrate. As such some companies have pegged a high price on it to the extent that even the accounting world is seriously debating whether to include the same on the balance sheet or not. Timely knowledge assists the company to marshal its resources in the most efficient and appropriate manner. In this way, the company ekes a competitive advantage far ahead of the nearest rivals. For another reason, the entity, being online, faces up to the rapid and drastic changes that confront the business world today. Environmental pressures directly emanating from the advent of IT buffet virtually every industry. IT has made the world even faster, than it was a decade ago. Today, a decision that once took many months can now be dealt with in a few minutes. Furthermore, IT enhances communication within the organisation. It is hardly necessary now to traverse land and sea to attend a meeting, because this can be done from base by simply pressing some buttons, to use the video conferencing (VC) facility. This is where a screen and a terminal are connected to a wider area network (Internet) and then a conference can progress! As though the afore mentioned were not enough, there is the email which has made communication to almost any point of the globe seem like next door. Although e-mail has its own demerits, it is an excellent means of communication. In addition, there is the voice mail, the local area net works, the phone, the fax, the telegraph and a whole host of gadgets that
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have made communication so easy for prompt decision making. For one to keep abreast with the times, they have to make hundreds of decisions in a day due to the scarcity of time as well as the complex nature of the world. From the time the first mainframe was commissioned, there has been no turning back regarding the gigantic strides towards better communication. Today, no competitive company worth its salt dares enter business without IT other wise the company risks folding up. As one writer once wisely stated “Ignore IT at your own peril”Θ Companies use different communication modes for various reasons. Some use them strictly for business while others use the website for all and sundry. Largely however, the entities use the email for inter personal communication to report, summon or give notice of some event. This is a quicker way to communicate rather than having a “face to face” chat, although “eyeball to eyeball” communication is by far the best as immediate feedback and cues are appropriated. Among the pitfalls of using the impersonal gadgets is the higher susceptibility to being misunderstood. But the rapidly changing times forbid us to use the time proven ancient paths, hence the need to mutate to IT to help us. Among those companies that have effectively used IT to enhance corporate communication is the Coopers & Lybrand, headed by Vick Luck, that peerless and clear-minded executive. As the company has ascended to a global position with new frontiers in the far east availing themselves, the company has strove to maintain high ethical standards by providing the highest quality services despite the budding and over bearing demands of consultancy services. With an international galaxy of 11,000 consultants dotted all over the globe, Coopers boasts of having a motivated, welltrained, team focused and well coordinated workforce. But how has the said company managed to maintain such a titanic, complex and yet powerful corporation together with one voice, aim and goal? We arrive at only one answer-IT. The company has adopted the use of IT for basically two reasons. Firstly, there is an explosion of consulting business world over and quality service can only be maintained with the use of IT. Secondly, the IT ensures that communication is kept fresh and relevant to the 11,000 consultants so that they are constantly in touch and march as “one man” towards the goal. In a nut shell, this IT has helped the company to maintain high standards despite the pressure as well as to have a “pool” of knowledge from which all can tap at any time. This is shared online knowledge and has been a powerful strategically competitive tool. Although Teamwork will for Θ
Banking World, October 1990 pp3
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a long time to come continue to be the key word, what really sticks together these teams is communication fostered by IT. Therefore, the next time you see the space shuttle launching into space, towards a successful mission flight, always remember that communication lies at the heart of the millions of buttons pressed, and any successful company of the twenty first century has to ensure that it is armed with effective communication gadgets and equally powerful evaluative prowess too. Thus, armed with these powerful communication avenues, the Coopers and Lybrand has nothing to dread! I have often wondered why certain entities seem to hurtle to greater efficiency heights and out put. Those that were under dogs yesterday are probably carrying the day presently though their success is not guaranteed tomorrow unless they avoid the path of their predecessors. During the 2006 world cup for instance, certain hitherto unknown teams potentially turned the tables but thanks to the experience of the more mature teams. A number of them survived by a whisker as they found it frustratingly hard to crack the puny nuts. A careful analysis revealed that the greater and more mature teams had a lot of professionals that had hardly played together while the weaker teams had played together for a considerable amount of time. By that token, their team effort paid dividends in that they relied on each other rather than on individual skill. Another lesson learnt was that some people were specially matchmakers who read the game and knew where the ball needed to be at any given time. For instance, the England versus Trinity/Tobago encounter gave valuable lessons. England had a star-studded team but lacked proper coordination though through experience, they triumphed in the final five minutes of the match. Individual skill was displayed through out the match but nearly failed to turn skills into goals. On the other hand, the Trinity/Tobago side really played as a strong united team. There was considerably less individual skill and more teamwork that made it really difficult for the much-fancied England to score. The key player that made England crack their opponent was their captain Beckham. This gentleman read the game and provided a conducive environment for the two quick goals as his powerful crosses got the right man at the right time. Beckham was the matchmaker, no wonder he was voted man of the match. From another perspective, success depends on the psychological preparedness of the person. In sport, this has a great bearing on one’s performance. I am sure the big names like Rooney, Beckham, Owen etc must have impacted on the Islanders but thankfully, they put up a spirited fight. If we know what is up against us and resolve to stand as a team, we can go further than we would ordinarily have.
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Team work brings about synergy with the right team dynamics in the correct dosages or else all is lost. As alluded to in the previous case, “Teamwork is the key word” as declared by Vic luck, the Chairman of world-renowned Accounting and consultancy firm-Coopers & Lybrand. Indeed, teamwork is the keyword for today and tomorrows’ successful company while collaboration is the Buzzword. Turn everywhere today, there is a shift towards interdependence (internally and externally) through collaboration and teamwork so as to reap the best qualitative results. The Lybrand Chairman, like many other management gurus, has vast experience having worked in big companies such as Philips, Ford and Chrysler. These are giants in their own right with well-established global brand names. As one researches through the teamwork literature plethora, one cannot help but notice how even the service industry is no exception in the march towards pervasive quality goods and services. Today’s global giants, whether in the service or goods industry have developed powerful systems that ensure superior and unique quality delivery services buttressed by a powerful teams network. The said teams work away like ants, from different sites dotted around the world but with one uniform goal: Customer satisfaction. Thus, whether one is in Asia, Africa, Australia, America or Europe, they are an intrinsic part of this one gigantic team, despite the time zone differences, culture, orientation, preferences or location. If one team is not functioning well, there is quick skill transfer from one ticking area to the ailing part, thus maintaining the corporate resilience and niche. For example, the Coopers & Lybrand is in the service industry providing consultancy services all over the world and has effectively used teams to carry the day, using the state-of-the-art technology. As a result of the said entities’ phenomenal success and profile, there is a sudden outburst of consultancy demands on the said firm everywhere, especially in Asia. But what is the secret of this company’s success story? Vic gives us a number of hints, which are condensed in the following fashion: i. Teamwork is highly emphasised. The consultancy firm has 11,000 professionals worldwide. Only collaborative teamwork will do in such circumstances or else risk running 11,000 “stand alone consultancies!” The consultants sit together and brain storm an issue and then come up with one answer which is the best for the purposes.
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iii.
iv.
Billy Chilongo Sichone
Quality standards. Despite the increase in demand of services, Coopers is careful to maintain high quality standards, for it is these very high standards that put Coopers on the map. Point system and rewards. The organisation gives points and probably rewards for outstanding performances. This acts as an incentive to the team to work hard and attain even higher heights. This has the effect of ensuring continuous improvement in the services rendered to clients. Shared Knowledge. The firm has one big database globally accessible to all consultants. Vic Luck has been at the helm of building this network and has done well because this has propelled collaboration and teamwork. There is a sense of having one “global team” in this IT∉ setting. Shared knowledge is another buzzword because without information, one is doomed to failure. Capital alone is not good enough. The firm is getting the benefits of having one big database, as information is very crucial today if the firm is going to be strategic. The world is changing very fast, hence the need for the right information at the right time, and that, to teams! “The reliance on shared knowledge rather than on the individualistic approach is one of the greatest changes in our business”, quips Luck confidently.
Given the four reasons above, one notices how teamwork has thrust Coopers & Lybrands to the global consultancy industry apex. The fast opening Asian market is an excellent place to position one’s business because of both the large market populations as well as the considerable advancement in technology. This entails that the market sucks in more technology as well as generates more business opportunities by that token. For instance, the 11, 000 strong work force at Coopers communicate frequently via the internet, intra net using gadgets like the video conferencing, e-mail etc helps not only to cut down on travel costs but also the speed at which decisions are made, information exchange, cyber-brainstorming and e- commerce. Clearly, modern companies have a competitive advantage over those that operate in traditional groups, management and bureaucratic structures that slay many a company. Furthermore, high quality standards and continuous improvement through teamwork are the only way forward for the modern firm, at least for a long time to come. We must think long term, synergy and interdependence. This is a fine way to think of a firm and the players therein! ∉
IT= Information Technology
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Team players Team players come in different shades, types and approaches. Some are extroverts, others are ‘individualistic’ team members connected to others in a virtual arrangement. Whatever the make up, good team players have some amount of good people skills. They love to hover around people and have some hobbies that bond them to other people. Guy Dolle, CEO of the Arcelor steel maker is an avid sports man who reads the sports page first before he goes to other business affairs. In an interview with CNN’s Todd Benjamin, Dolle revealed that he has adopted some of the football team dynamics into his highly successful company. He says at least two things are critical, integrity and valuing colleagues as vital assets to success. Team playing is an art that must be learnt and perfected over time. Another interview with Mr Brian McClelland, the Vice President of People systems at Saturn Corporation gave very revealing insights into team potencies. The interesting feature is how the giant Motor Companies like Saturn are using teams and Managers to make headway in its quest for a sustained industry leadership. Research brings to the fore how companies are turning the tables “upside down” in that the traditional approaches to management and planning have fallen by the way side. For example, Saturn no longer uses the term “Human resources” to refer to its workforce because the team spirit is deeply ingrained into the culture of the organisation. The interview gives the impression that Saturn is a continuously improving and learning Company. There is a deliberate effort to train and educate team members for a minimum of 92 hours every year! It is believed that as the team players are sharpened in the problem solving as well as people skills, then this will subsequently lead to more satisfied customers and ultimately product loyalty and expansion. This all talks about Total quality in all spheres of the organisation. Saturn was initially put on the team spirit wheels and onto the quality van by the founders who most probably read the times. The writing on the wall is very clear for the successful company of the 21st Century. The chief reasons why the founders saw the need to engraft teamwork and quality was the realisation that modern success on the market demands that the internal customer (employee) is satisfied so that they can put their full weight behind any implementation plan. It is widely believed that if the people who actually do the job on the ground are involved in the planing and 328
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to some extent charting the future course of the organisation, they will fully support the implementation stage because they feel they “own the goal”. At Saturn, teamwork has worked very well because of the aforementioned people,despite having a diversity of employee classes. Among the many classes at Saturn are those who are unionised and those who are not. All the classes are well handled and generally have one goal in mind- To make Saturn the leader in the Motor industry. The quest for quality products and market leadership is achieved via two vehicles given below: i. By including customers in teams. This helps the organisation know exactly what the customers need and also ensure that the company is proactively anticipating customer tastes. Furthermore, the inclusion of customers in the planning stage helps to build loyalty. If ones` needs are met and actually exceeded, the same will see no need to jump over the fence to another rival company. ii. The organisation has imbedded in its mission statement five shared values to which all team members must adhere. These values have been internalised very well at Saturn because the team members actually live out these values! This is a desired position for any strategically inclined business of the 21st century. The five values are: 1.Team work To score any goal, there is need for people to work together, with unity of purpose, aim and pace. Team work entails that people form a network realising that they are interdependent and need to tow together to timeously and qualitatively get things done. Team work, as the word itself connotes is work in itself. It demands selflessness, commitment and resolve to work with others. Many people prefer to operate in a clandestine solo orbit, a commando kind of arrangement. They prefer individual recognition and will not share the glory with others. Such rarely go far.
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Volley ball team @ Mulambwa grounds, Mongu, 7th July 2006 But team players realise the need of others to reach the mountain peak, even if they may be outstanding among peers. When one walks into a team environment like at Toyota, this cohesive spirit cannot be missed even by the least discerning fellow. There is an air of community, togetherness and a positive energy in the atmosphere. The author once worked in an environment that was run by a proper professional, what a difference it made! But when a “Professional” muntu took over, the atmosphere turned sour! In a team work arrangement, people look out for each other and ensure that the conveyor belt arrangement is not broken or interrupted. 2.Excellence This entails giving the best ever possible out put consistent with the expectations of the entire team. Perfection in every aspect is non-negotiable. 3.Trust This carries the connotation of interdependence and reliance upon each other in a given task or common goal. Without trust, you have no telling what your neighbour will do whether burn you to ashes or defend you. Where trust is, the bonds strengthen further. In other words, mutal trust is an essential ingridient to the winning team. 4.Respect Closely connected to trust is a mutual regards for each others’ opinions, integrity, reasoning and perspectives over any matter.
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5.Continuous improvement There is no arriving once on the quality journey. There must be repeated improvement upon something again and again far outstripping the expectations. All the five values highlight the fact that Saturn has a clear direction and transparent objectives. The impression created is that customers are left to exclaim, “ Who wouldn’t want to be associated with Saturn?” But that is not the end of the story, Saturn also benchmarks other organisations which are excelling. This is crucial because once the secret of success is known, the organisation makes the correct manoeuvres so that it maintains or ascends to the pinnacle of the market. The effects of these values are evident in the lives and work culture of all Saturn workers. Although Saturn has made tremendous strides towards quality leadership, there is still more they hope to achieve. In the spirit of continuous improvement, Saturn is not content nor rest on its laurels. They are ever making innovations so that the customer is more than satisfied. The greatest asset that Saturn possesses as it attempts to be more agile, is the immense brand loyalty that has accrued over the years. The immediate plans are to put a product- the midsize Saturn on the market. The company is confident that the customers will love this product since they have been part of the design process from the start. Saturn has used teamwork and managers very effectively. They are not afraid of the future because quality is their best weapon coupled with the best management practices. Clearly, The company has scored many firsts including the hiring a lady Chairperson (Cynthia Trudell). In a major car company, this is both a plus and potentially a powerful marketing tool. Reading about Saturn’s teams and the incredible achievement record makes one look forward to physically visiting the plant and keenly observe TQM at work raking in Market success through teamwork! Team building cycle Team building is an arduous but rewarding task and exercise. It is arduous in the sense that to get any meaningful semblance of a team, there is a lot of work involved, the hours, efforts, costs and disappointments along the way. Sometimes, the very people intended to be on the team are the very 331
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ones that turn round and repeatedly tear down any tangible progress achieved. On the other hand, team building is a rewarding task because of the elating results that it brings about the fore. In an ideal situation, there are higher quality results, over lapping, continuity and self managing, not dependant on one individual to get things going. A team-building model developed in America best summarises the team building cycle or phases. The first time people meet, they hardly know each other and unconsciously start by sizing each other up (forming) followed by the red cards, tussles, tip over and antagonisms as people get to know each other in terms of their limits, temperaments and preferences (storming). At this stage, a lot of sparks ensue and can either make or break the cycle. Once that critical stage has been successfully crossed, people begin to settle down, know each other, and avoid past pitfalls. At this stage, people sufficiently know each other and can safely joke, brainstorm or tease one another without major repercussions (Norming). Having known each other, their attention now shifts towards achieving results, since the preliminary hurdles have been cleared out of the way. At this stage, people are issue based, goal and target focused and will not easily be detracted by criticism since they view challenges as opportunities and stepping-stones to the next level. At this stage, the team is mature and self-managing. The petty power politics, suspicions or daggers are long hurled away in preference for team effort and goal getting. Many socalled teams rarely get to this mature refined stage in Zambia, though exceptions exist. The diagram below summarizes the team building cycle:
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FORMING
PERFORMING
(Start)
STORMING
NORMING
American Model Chaos stage
In this text, we have further refined this model by adding two stages prior to the forming stage highlighted in the previous diagram. Our two stages emphasize the point that before people ever come to the organisation, they are outside the system which we can consider “roaming” around with no particular aim as regards the organisation. Of course we know that they are part of other systems, teams and so forth far from this system and have different orientations, goals, aims and ways of functioning but when they take a step to join the firm, they come with hind experience and disengage from the previous attachments. As they resolve to come, they pass through 333
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the various induction phases such as interviews, orientation, negotiation, contract signing etc and then subsequent entry on board the organisation. This whole phase constitutes what I have elected to call the “coming” stage because it is a conscious deliberate step on the individuals part to enter a “corporate employee pool” from which the teams now begin to take shape. The model below highlights this thought pattern:
PERFORMING
ROAMING
(Start)
COMING NORMING
STORMING
FORMING
Refined American model Chaos stage
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[ Chaos stage ] Equation: Roaming-> coming-> forming->storming->norming-> performing
Once on board, the hired staff cadre join their respective departments and areas of specialization. This constitutes a dormant stage where groups exist and people focus on their specific work area, passing on their output to the department head who consolidates everything to make one report. If a functionary fails on their part, the gap is clearly spotted and incumbents are penalised for their error. Further more, this is the raw material stage for potential teams. As organisations realise the disadvantages of groups, they opt for teams that are cross-functional which demolish the imaginary departmental walls. This allows for information free flow, idea exchange and higher quality out put and out come. To attain this fine performing stage is not easy, much work, time and effort as earlier intimated, goes into this maturation. Apart from hiring the right staff with the correct competencies, you need to integrate them into one cohesive front that operates like hand in glove. To have an organisation that works like the human body is marvellous because it will not only respond to stimuli but also proactively position itself at the right place. A number of team building techniques have therefore been suggested in the ensuing section and worth serious consideration. Remember that these are but suggestions, you are advised to think of other equally potent ways appropriate to your context: Suggested team building techniques These exercises are designed to build a cohesive team and the best way to build unity of purpose in the organisation is to first make team mates realise the goal and benefits. As opposed to working as “stand alone units” or concentrate on destructive organisational politics such as position jostling, back biting and devouring one another, the team players are made to realise that unless they pull together, they must necessarily sink together and all lose out. To achieve this, the strategic team builder should use various methods such as: 1. Making people have unity of purpose and goal. The leader should endeavour to pull along the friends in a smart but systematic way to the extent that they begin to see the whole picture, the pros and cons of what the organisation is about or intending to do.
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2. The managers from different places of the same organisations should go off together for team building exercises. This should preferably take place away from the hustle and bustle of life with cell phones and land line phones banished unless the critical calls. At that far-flung place, the managers should engage in physical exercises such as mountain climbing, swimming, soccer, relay race, boat cruise or going down some steep cliff. The exercises should be designed in such a way as to enhance interdependence, connectivity and teamwork. For instance, a team could go to a place like the boiling pot at the Victoria Falls. In getting to the pot, a steep distance of over six hundred metres has to be traversed. Along the way, the participants encounter a number of things like the steep rocks, monkeys, a stream and some thick vegetation. Strange sounds from Mother Nature are also heard. On arriving at the pot, they see the marvellous swirling flow of water, relax and then head back uphill. The journey back is the most challenging and many may fall by the way side but others will pull them along until the original starting point is reached. The team members then can go for a swim or continue on to soak in the Victoria Falls spray. After all the fun, the team will definitely be more cohesive if people are sincere and open with one another. Another place is the outward-bound camp in Mbala, a secluded and quite place far from the conventional civilisation. The scenery is good and ideal for brainstorming and team building exercises. Akin to the boiling pot experience, the Mbala place is recommended. Some other places include the Chishimba and Lwitikila falls (Kasama and Mpika), Shiwa Ngandu (Chinsali), and the Chinyunyu hot springs (Chongwe) among others.
Lwitikila falls
There could be other places that have mushroomed across the country recent years and the various management teams must take advantage of this. In a nutshell, the watchword is innovation and tact to make the
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team glue stick. Further, the team could elect to play games such as volleyball or tag of war. These games make people pull together. 3. Another way to build a team spirit culture is having regular brain storming sessions where the Chief Executive takes off his/her status and contributes like any other person. The average African boss has such an enormous power distance to the extent that it is nigh unthinkable to view them apart from their office. But that not withstanding, the ideal leader, can and will delve to the lower orbs without much ado and intermingle with everyone. In the brain storming sessions, the atmosphere is meant to be informal where every one can say what ever they please whether it makes sense as long as the general context is kept in focus. In other words, a subject is laid before and all sorts of ideas are allowed, including the wild and weird ones. At that stage, no one is right or wrong but as the team deals with issues, they pick out the helpful ones while the less appropriate fall by the way side. This brain storming exercise has a way of building objectivity, openness and a desire to connect. Despite the fights and sometimes violent reactions, the people know each other and subsequently build life long friends. In other words, the friendships transcend the office as people become colleagues. 4. Once in a while, teams should spend time together by way of partying or going out together just to have an informal time together. Socials could even extend to the entire organisations at particular times, for instance at Christmas times. Care must be taken here so that the focus is not lost. 5. Go rafting together as a team. White water rafting is one of the most exciting activities one would ever undertake. The Zambezi rapids are said to be among the most exciting in the world, meaning that they are some of the most dangerous! Once the team commences the five hour trip down the gorges, they entirely depend on one another for survival, for they go through places where no man lives. At the end of the exhilarating trip, people have had fun together and get bonded to one another. The Sobek expedition will have done its work by giving you the rare treat.
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6. Watch the ants at work! If possible, create an area where ants can freely do their thing while you watch and interpret as a team! Proverbs 6:6; 30:6 7. Another team building aspect you could consider whilst out there is to divide the entire team into smaller competing groups and then give the groups one puzzle which they will have to solve as a team. The wining team gets a prize. A suggested puzzle is to let them hang sixteen nails on one (The seventeenth) plus a plank. The first team to complete the task will be applauded. Watch how they feverishly get to work as a team! 8. Boat cruise, sports (e.g. football matches), group work etc. Closely connected to an earlier point, in a workshop or conference environment, the work pressure is likely to be high and knock out some. It is refreshing to have some team building activity such as some popular sport, boat cruise group work, bus ride to some place, visit to the zoo or any other interaction providing a resting valve. The next day, every one will come to the meeting place exhilarated with something to talk about and look forward to some more. Do not worry about those aching muscles, it is part of spicing up the activity. Teamwork indeed makes the dream work as Dr Maxwell has rightly observed because people with ideas, energy and enthusiasm pour out their best so that the goal is reached. I often wonder how thousands of people cohesively work to ensure success of any space flight, manned or not. They have one shared goal at any one given time and at no time does any one spoil the soup. In fact, it shouldn’t be in the first place! This time work is not only limited to the earth but to the astronauts as well. As depicted in this 338
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book, Apollo 13 stands as an astounding example of classic teamwork between the mission control (earth team) and Apollo (space team). Any miscommunication or antagonism would have been tragic in outlook. But then, teamwork must work in all areas regardless of ones’ ethnic background. APPOLLO 13: The greatest and most successful human mission ever under taken.
Encyclopedia Apollo 13 Saturn V Rocket Although the Apollo 13 mission never achieved its objective of landing two astronauts on the moon, it is none the less one of the most successful voyages ever undertaken by man. Its success lies in the fact that the mission involved the greatest amount of innovation in a real life threatening situation. The mission started off like any other ordinary trip to the moon but then the oxygen tanks exploded somewhere between the two terrestrial bodies, far away from earth. The internal space craft oxygen levels begun to drastically drop while the energy dangerously dwindled. The three astronauts were in grave danger of either being consigned to an orbital grave or being burnt alive on re-entry into the earth’s atmosphere. To solve this puzzle, the best brains were summoned at NASA’s Houston space station offices where countless brain storming sessions took place, while the three men were hazardously freely floating in space with their lives slowly but
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surely ebbing away. A strategy had to be found on how to prolong life, reduce the toxic carbon dioxide levels as well as to safely and quickly bring people back to earth at the right trajectory, velocity and angle. This was done in stages. The first was to deal with the dwindling oxygen problem which was solved by innovatively using locally available materials on the space craft. This was great creativity. With the oxygen stabilized, the next was dealing with the low power. Power preservation meant a cold environment and slow velocity. To solve this, the module went into orbit around the moon and was catapulted at a tangent way back to the earth.
Encyclopaedia The probable Apollo 13 trajectory As the vessel headed towards the earth, the little reserved power was used to thrust the vessel in order to ration the scarcely available oxygen. This was meticulously done to the dot or else the craft would have veered off into deep space or re-entered the atmosphere at a dangerous angle.
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Courtesy of NASA Thankfully, it approached the earth at the right velocity and angle. The last and perhaps most deadly lap was the re-entry process. It was not clear at that time to what extent the heat shields had been damaged but the re-entry had to take place. The descent begun and for about five minutes, there was no contact with Mission control at Houston. The standard time is 3 minutes beyond which people press the panic button. As the third minute came and went, panic enveloped the whole world. Thank fully, the capsule emerged from the clouds with its beautiful multi coloured parachutes and majestically splashed down! There was immense jubilation when the captain reported that all was well.
NASA Recovery of space probe This mission is probably the greatest and best epitome of team work. Both the people on the ground and on the vessel really worked as one to ensure the capsule gently splashed down on to the Atlantic ocean, although an aborted trip. Chances are that the people could have died in space or 341
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perished as the craft crashed into the sea had the chutes failed to function. What an innovative 7 day odyssey!
Certain things must be clearly laid on the table where ethnocentrism is cast out. Peer at the recent Space Shuttle programs, all sorts of nationalities are represented as the International Space Station (ISS) is constructed. Next will be the moon base from where mining activities will be launched in the quest to extract and exploit the much coveted Helium 3 from the lose moon soils called regolith. This Helium 3 once activated on the earth could provide an abundant source of clean nuclear energy∧, hoping this mass movement does not bring about cosmo-disequilibrium to the delicate solar system set up. The moon will soon be colonized, if that has not already taken place with territories and mining rights. To reach such levels, immense amount of human resource management is required. Thus, in the ensuing section, we take a cursory view of the diversity management landscape. Managing a diverse work force Diversity defined With the fast paced globalisation of business, many parameters confront the organisation that was hither to not a big factor years ago. Among them is the rise to prominence of the issue of diversity. Diversity has to do with having a crop of totally different people working together in one organisation or community. These people have different perceptions to life and issues, orientations, preferences, are from different tribes or ethnic groups and in some cases, some of their habits conflict with or upset others. Yet these people, with all their differences must work together as one unit and build a winning team. The global leader’s task is to galvanise all this diverse work force into one cohesive whole. The current belief is that there is beauty in diversity as each person comes along with some unique enriching work culture ideas. Further, these diversities also make the work more fun, interesting and in some cases bring on board some hitherto unknown methods of best practice. Diversity does also have a fair share of the dark side. This includes misunderstands, communication breakdown, friction as well as endless tussles where communication has totally broken down. Without prior orientation, the team can degenerate into a boxing ring 24/7 of ∧
Professor E. Clive Chirwa made an excellent write up on the “race to the moon” where he highlights these ideas. Refer to the Sunday Post, March 4th 2007.
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the time. That said, diversity bring about a rich blending of cultures, personalities and in the long run reduces tensions among different peoples of the world. For instance, a person from Eastern province of Zambia, relishes and munches a mouse which a Northerner detests. Similarly, a Northerner will not rest until he tastes a piece of monkey flesh that others detest. We could extend this to polygamy perceptions, spitting in public chewing gum, “impokeleshi” etc and yet Zambians have weaved a beautiful way of interacting with each other bearing in mind their specific cultural differences. With the DSTV advent, a more or less homogeneous culture has invaded the urban settings. The tide has change and is quickly permeating the working world. In the next twenty to thirty years hence, the corridors of power will be handled by the new army of global minded generation. But the present beautiful diversity must be preserved though in danger of extinction at the globalisation grisly hands. Diversity therefore carries the connotation of differences between entities, species or people in many senses. In this context, we refer to a work force that is made of people from different ethnic groups but successfully working together as a team to achieve a common goal. It is not uncommon for many companies, especially the multinationals to have a mixed grill of staff emanating from all parts of the globe. To manage this type of workforce requires some considerable skill, depth, maturity, sensitivity, intuition, broad thinking and acting, open mindedness, objectivity and willingness to learn. Bearing in mind that people hail from different backgrounds helps the manager to sensitively and delicately handle each individual in an appropriate way but effectively communicating the intended message. Contrary to what many people assume, communication is difficult, because it is subject to different interpretations, misunderstanding, perceptions or applications. What may be said in good faith can be viewed in a totally different light resulting in major mistakes on the part of the parties concerned. This author once attended a church were the Pastor one day made an announcement in good faith. His message was simply: “Since we intend to be hosting people over lunch in our homes every Lord’s day, let me know in advance so that I can coordinate and arrange for you before Sunday” It was shocking to hear one church member bitterly complain that the Pastor was blocking any inter personal visitations unless sanctioned by him! Clearly, this was a misinterpretation on the part of that Church member. Upon investigation, it came to pass that the Church member had other underlying personal skirmishes with the said Pastor to the extent that what ever he (Pastor) said, even in good faith, was taken with a pinch of salt or 343
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highly analysed to tease out the hidden meaning. That not withstanding, the Pastor had an obligation to lead those people, regardless of what they thought of him but how could he effectively do it, if he was not even aware of the problems? Thus, as Bennis has aptly said, “leading people is like herding cats”! I am sure you can imagine the confusion in that flock! If a homogeneous set of people is a nightmare enough, what about a diverse team? That is the challenging part of it but the good side is that a diverse team is a rich place for learning, information exchange, best practices plat form, idea generation forum as well as a place to for interconnections with other cultures. For instance, a Chinese working along side a black African can be quite an experience but at the end of the day, they get mutual benefit. They exchange notes on how they can best go round a problem, technological sharing as well as interpersonal appreciation. Next time the African ventures into main land China, he will not be a totally disoriented chap but know the basic Chinese psychology and how to get round issues. Similarly, the Chinese fellow will have an intelligent appreciation of the dark skinned person and not get jilted into a panic quake when s/he meets a sea of dark faces at the Lusaka International airport. This section however seeks to high light the fact that diversity is good and must be heralded at all costs due to its attendant benefits. A story is told of how a Japanese and American international team of engineers worked together over a joint project. Initially sparks came out of that because the American was always time conscious and broke off when it was tea break, lunch and home time. On the other hand, the Japanese relentlessly went on and on. Methods of doing things were different and so was the preferred working environment. The America thought it right to open the windows while the other did not. On and on went the small skirmishes until some prior orientation training was arranged in the next international working session. I am sure the results were fantastic in the latter session as opposed to spending too much time arguing over perceived petty differences emanating from the SRC. To maintain law and order in a diverse context none the less requires special diligence and aptitude on the part of the supervisors. How does one retain diversity? The next section handles this aspect. Retaining Diversity With the rapid re-engineering that has been sweeping across the world’s businesses, one hardly finds it difficult to stumble across literature that deals with the said changes. The electronic and print media are replete with reports of company reorganizations every day. Indeed, these envitable changes are 344
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sweeping across the world like a typhoon and there seems to be no panacea to this traumatic tide. What is really happening? Why this seemingly mindless closure of companies and the shift towards diverse corporate companies? These and many other questions, this section seeks to unveil in some detail. One aspect dealt with is that of nurturing and maintaining a diverse workforce in this competitive environment. But why should we bother ourselves with diversity? Why the countless studies? Diversity retention is one of the issues of the times in the global context and many writers have pondered over it including the famed Caela Farren and Bob Nelson. They have stated that although recruiting a diverse workforce can be challenging, retaining the same is even more dicey. Reading further reveals four best practice methods to be imbibed so as to minimise the employee turnover because retaining a diverse workforce is crucial due to the obvious advantages that accrue to the company. Firstly, people from different backgrounds and races come up with different ways of carrying out a procedure as well as new and cheaper ways of producing a product. Closely connected to the first reason is the fact that a rich diverse company helps the multinational corporation to sail more easily on “foreign waters”markets because valuable insights and connections are within the corporate ranks. Thirdly, in keeping with the affirmative action, where minorities are given an equal chance of employment, advancement will ultimately bring about more production and harmony. Hitherto, the top jobs have been the private preserves of a few elite men. In the past, women and people of colour have been relegated to the terraces. With the aforementioned culture, a company risks missing out on excellent contributions from the said minorities. The four best ways to retain diversity include: For starters, open communication is highlighted, and rightly so. Communication is crucial if any institution is to survive in any circumstance. Even marriage, to a greater extent, hinges on effective communication. By this is meant that every one has a right to information at the right time and must keep abreast with the current happenings within the firm. This entails talking over issues, having access to the top executives and liberty to suggest innovations. Every one, despite their colour, sex and creed must have a fair 345
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hearing. For example, at Pacific Enterprises, one or two top ranking employees sit before an audience and describe how they moved through the corporate ranks. This offers tremendous encouragement to those beginning the corporate ladder ascent. Berlinda Fontenot-Jamerson, who heads the Pacific Enterprise Diversity Program and is herself an African American woman, testifies to the usefulness of this approach. The second suggested best practice is that of training and education. All employees must be given some form of training to sensitise them of the potential dangers of discrimination and also about other cultures. Gross ignorance accounts for some of the discriminatory attitudes such as ethnocentrism where one feels their colour, sex and race are superior to others. Thus, training and education will go a long way to clear defective stereotypes and prejudices. Furthermore, all staff must be given similar opportunities and leeway to express themself. At Microsoft for example, two programs are in place to tackle the diversity issue. The first is an awareness program designed to limit the influence of stereotypes while the second is a “business program to provide real-life situations, challenges, and solutions to diversity issues”Γ. In addition to the aforementioned training, the companies should embark on staff career development that will make them self reliant, thus building capacity. The third best practice method is that of deliberately providing mentors to new employees. The said mentor should be attached to a new team member and should meet at regular intervals to exchange notes on the progress. A period of one year is recommended. In this way, the new people will feel welcome and not lost. Digital Equipment has reduced minority turnover as a result of the mentor program introduced into the company. The idea of mentors was nearly a forgotten art until the world woke up a few years ago. Most of the world’s great personalities have had mentors to whom they looked up for inspiration, much like the ‘management gurus’ we read about in our studies! The fourth and last best practice is to make managers accountable. Far too many pay lip service to the importance of diversity than they practice. Once given a platform to present a paper, they give heart rending, tear evoking and moving speeches but as soon as they turn round to leave, they discard everything! There is need to put parameters in place to ensure that minorities Γ
Retaining Diversity, Excellence magazine-May 1999 issue page 7
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are not only represented but are appreciated, as Roosevelt Thomas, Jr.ϒ would advocate. Top management must be seen to tangibly and pragmatically support the diversity program. We learn many valuable lessons from each other and ultimately the organisation benefits once the right attitudes are internalised into the company culture. Having outlined the best methods, some guidelines for a strong foundation are in order. To build a powerful superstructure, there is need to foster understanding on key concepts, address all representation and diversity issues regularly. With these and other practices such as cultivating team spirit, mutual trust, effective communication, we have no reason to believe that a company will continue crawling in the dust of competitive disadvantage! International Management in perspective International management or Global management as it is sometimes called by some (although global has a connotation of one world market while “International” refers to two or neighbouring or geographically distant countries etc) has to do with functioning in a fast globalising market place with different cultures, tastes, preferences clashing or mingling on the international scene. As business touches the far flung reaches of this global world, a cadre of mature managers have arisen who have the right profiles to work in highly turbulent, volatile, dynamic, diverse, slippery, ethically difficult world. International management basically draws its principles from the basic management tenets but applied in a global context with the appropriate dosages. Thus, the international manager must be an adept and astute strategist that reads the times and knows exactly what ought to be done. Sadly, International Management annually has its casualties that return home, defeated, sad and disoriented as earlier hinted upon. In the subsequent sections, we consider some of the key traits needed by an international manager. Essential attributes of an international worker The International Management practice radiates brighter when we look at the subject in more detail. All along, the Management of personnel and work has been latently alluded to but here, it is transfigured as it were, for our peering into. As you will notice, the profile of the global Manager is ϒ
Diversity management, Excellence magazine-May 1999 issue page 8
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interesting because the said cadre could be recruited from any point of the terrestrial ball. Gone are the days when only local staff could be the ones recruited for a job. Now, any one can take up the job as long as they have the right qualifications, competence, profile and the acumen to feature on the international scene. In that case, the Manager must be very versatile, active and multitalented to fit in well in varying environments. As such, there is also need to be multilingual by mastering more than one language as well as the unspoken cues that go along with the local culture. In addition to the aforementioned point, the International Manager can lead from any country and base. By that token, International experience is crucial for the present and future global manager having a wide mind and rich exposure internationally so as to objectively handle staff problems of various shades. For example, the need to empathise and understand the local situation yet to keep a global outlook is key to the manager’s success in a diverse work force. Closely tied to what has been mentioned is the need to learn to motivate staff. How can one discern the aches and needs without empathizing with the workers? Were we to use the Standard American motivational practices only, chances are that they would probably be out of taste with the local scenario. Thus, there is a way in which one must know the best way to reward and motivate a diverse cultured work force, although still keeping within the corporate culture and goals. The person who will be an excellent international beacon must possess the following cultural skills: 1. Maturity- One who is wise and able to handle diverse and sometimes radically different cultures competently. 2. Emotional stability-The person must not be moody and unpredictable. In one moment, very warm, friendly and sociable but in the next hostile, argumentative, bigoted and throwing tantrums all over the place! The Manager must hold him/herself in all situations whilst keeping his/her head in all circumstances. 3. Considerable breadth of knowledge- It is not enough to have the financial backing or the acumen, but rather, knowledge must be first resident in the brain and from that platform launch to deal with each case as it rears its multicoloured head! The Manager must have a broad knowledge in terms of geography, history, culture, local politics, laws, religion, policies and the possible strategic routes to employ. S/he must also know the strengths, weaknesses, opportunities and threats that confront the fate of the organization. 348
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4. Adaptability-Having acquired the knowledge and acumen, the manager must also have an ability to adapt to the circumstances prevailing so as not to appear out of step with the times. In other words, the understanding must trickle down to the heart where it affects the will to accept the situation and do the best to reap maximum benefits both for the organization, employees and the local community. Half the time, the will revolts to stay in a given place and thus, the manager, though knowledgeable and apt will pack his/her bags and return home a lamentable failure. 5. Good attitude and effort- this aspect is closely connected to the above-mentioned point but has more to do with the mindset and the inward disposition that one has towards life. If one is strictly ruled by his/her SRC, they will display a bad attitude and thus put in very little effort. Usually, such have a defeatist attitude to a point where even their minds cannot think objectively or strategically. 6. Positive out look- having said the above, the good manager then must cultivate and have a positive out look to whatever situation that confronts him. Optimism should be the hallmark of a good International Manager. But that is not all, some further traits include: (i) Communication skills- We live in a world of interdependence as well as an information age. It is therefore not advisable to keep to oneself and only release ‘Press statements’ at irregular intervals while the rest of the time, pitch darkness reigns within the organization. Clandestine, authoritarian and ‘commando’ like managers are out of step with the modern management trends. Effective communication is the key to every thing today. (ii) Respect-The manager must have due regard for others and not ‘ride a high horse’ where no one is viewed as important as the self. Many an international manager has wrecked their potentially glittering career by arrogance and pride, although they initially had unrivalled plans. (iii) Tolerate ambiguity- The Manager must have a high tolerance level of uncertainty because of the dynamic nature of the international scenario. Some people cannot stand being in limbo for long and easily get frustrated, but not so the good manager. Instead, s/he watches the motions of the market 349
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and comes up with a pattern over time and yet always giving allowance for sudden change. This calls for patient endurance and resilience. Analytical and logical people are the most in need of this grace of patience. (iv) Display empathy-Must be able to feel and imagine oneself in the shoes of the person needing help. Without empathy, it is impossible to appreciate and rightly apply the correct remedy in a given situation. (v) Non judgmental- half the time, without our consciousness, our SRC affects the way we judge things and situations. Our prior training, orientation, education and culture have a more potent influence than we realize. For instance, what we have termed as ‘moral and right’ may not necessarily be the same elsewhere. Thus, the manager must not be dogmatic nor condemn others for holding on to a contra opinion and practice. (vi) Recognise and control the situation aptly and quickly. The astute Manager’s sharp eagle eye must see things and quickly devise a solution long before it happens. This is a rare strength but the good International Manager possesses that discernment and uses it appropriately to handle issues. (vii) A good sense of humour- Laugh off things and not take things too personal. Care of course must be taken not to trivialise even important and critical issues. (viii) The right business acumen and tact. This should be one of the overriding traits for one to strike deals and get things going. Many people have the cash, information and brains but lack this charisma to articulate issues well. This is especially helpful in areas where a lot of prior negotiation has to take place before striking gold. The work of the international Manager involves wisely contending with various attitudes, beliefs, cultures, and values of the local condition. For instance, in the United States, the company business takes precedence over family or relations because more loyalty is given to the entity. In Latin America, the opposite is true. Further more, in the USA, the entity concept of the organisation is espoused strongly while in other places, the entity cannot be separated from the people. Another difference is the way people view their jobs in a particular organisation. In the West, working for a particular organisation is not viewed as life long unlike in Japan where 350
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people devote themselves to one organisation for life along side other relatives and friends. The work relationships are more personal and founded from culture and family while in the States, the grounds of hiring some one is not family attachment or prior knowledge but largely on merit. We may even add the attitude towards working hours as a difference! A Japanese worker will toil tirelessly until the work is complete everyday without minding the knocking off time while an American will content him/herself with the 8 hour schedule, pack bags and go home, whether the work has been accomplished or not! All the above attitudes influence out put and reactions of people towards their vocation. The international businessperson must contend with and contain all these aberrations. Types of Workers in International business: Having considered the above we go on to say that there are three major sources of multinational personnel and these are: 1. Natives- There is an increase in the appreciation of employing natives in certain sensitive positions because of the acumen of the people who know all the inroads to success in that particular setting. It is also cheaper to hire locals as opposed to expatriates, thus saving on the over-heads. 2. Expatriates-For a long time, this has been the practice of many a Multi national organisation because of the feeling that “our own is better”, knows the corporate goals, will be objective and socially intelligent to read the times. The expatriate is expected to know the critical aspects of the business and thus more easily represent the organisation. In a nutshell, the expatriate sent on an international assignment for a number of years from the head office and most likely be a native of that country where the head quarters are placed. The trend of hiring expatriates is steadily on the decline although still very prevalent. With the advent of the virtual organisation, it would be difficult to have expatriates in the sense we have described. 3. Third-country nationals- another option is to transfer some one from one branch/division to another to head another place within the network. That person is not usually from the head office nor is he/she a native of the country of origin of the organisation but another third country e.g. from India or Pakistan. This practice is on a lesser scale than the expatriate option but equally works well. 4. Knowledge workers-This type of resource is on the rise rather than the specifically stationed person. This type of worker is the sort that has “no fixed abode” but is stationed at the Head office and travels around the various subsidiaries around the globe using the specialized 351
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knowledge s/he possesses. In the short run, this mode might seem too costly and inconvenient but is cheaper in the long run depending on the geographical location of the said person. The idea is to have a regional facilitator whose overheads are apportioned among the various sub stations. World Vision International has very successfully employed this mode. Again, Drucker has left his footprints for us to trace. In a nutshell then, International business is complex and needs someone who is well-adjusted, objective, wise and with the right acumen to fight the battles that lie ahead. Managing Global workers Global workers (including international workers) no doubt are fast becoming the norm rather than the exception. Years ago, a person that worked beyond the borders of their countries were viewed as near super human beings and when they returned home, they loaded with many adventurous stories, amused many with their exploits in the far flung lands. Many Zambian parents migrated to South Africa to work in the mines and later returned home after earning a fortune which they gladly brought home as exhibit. Today, however, it is hardly surprising to learn of a person who ventures abroad and settles there because the world is one grand economy. Global workers are technical, artistic or knowledge workers who hire themselves out in return for payment. A global worker has certain traits that include the following: a. Open minded/objective b. Culturally sensitive c. Willing to learn d. Resilient under pressure e. Flexible f. Curious g. Patient and down to earth If you are a “home boy” then an international assignment is not ideal for you as many of such that go out there return home frustrated, tired, disillusioned, disoriented and many times even fail to fit in once again. The reason is partly that they were not psychologically prepared or sufficiently exposed. They discover that they are cut off from friends, acquaintances and family when they are thousands of miles away, this thought cripples their minds and eventually throw in the towel. Thus, the HR department of any organisation 352
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must know what steps to take before, during and after an international assignment. Further, if the person was not sent abroad by any entity from his/her country of origin, it is prudent that you consider well your options before you take off. One of the major things you should consider is a house or two at home where you can fall back on in case things do not work out. Many, while thinking working abroad will solve all their problems have discovered too late that opportunities were actually in their countries of origin only that they had not looked hard enough. Some humble them selves and return home to start afresh. The majority however, stubbornly resolve to stick it out even if it means turning out destitute. They cannot countenance returning home empty handed. Self management is crucial. In an international cross cultural organisation however, the manager must know how to effectively handle matters knowing the delicate cultural differences that exist and also that what is seen out side is but a tip in the ice berg, many unwritten rules lie beneath the surface. Challenges faced by the global worker The global worker no doubt faces many challenges, which in some cases turn out to be opportunities or stepping stones to success. Due to the rapid changes and mixing of cultures on the global scene, there is a lot of relativity and uncertainty that bugs the novice mind. As time goes on however, the new person knows how to handle these matters mastering the art of communicating across cultural barriers. Perhaps with the passage of time, globalisation will bring about a near homogeneous setting where people will look at things in a very similar way, although intrinsically remain different due to hind orientation. Today’s global worker faces a number of challenges still which include the following: a. Cultural differences. Culture shapes who we turn out to be in life in relation to our perceptions and reaction to situations hence we do not expect ‘perfect harmony’ and uniform appreciation of things. b. Different practices: The way things are done varies from place to place. What may be done in a particular way in Zambia may be different from the way an American can do it. In addition, some things are perceived as benevolence in one place but dubbed “corruption” in another context. An example is the actual definition of “corruption”. It is slightly different in Africa and Europe. In Africa, by and large, we are benevolent and show our appreciation by giving or sharing something, especially after you have done 353
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some one a favour or granted some assistance. Not so in Europe who are an individualistic society and perceive any “benevolent” act with some level of suspicion, unless they are 100% sure it has no strings attached lest it backfires in future. Consider for example the “business inducement’ cash provided for in the western countries like the UK, this is somewhat perceived ok but when FTJ provides for a “slush fund”, this is dubbed corruption of the highest order! There are other ethical issues which are beyond the scope of this book but suffice it to say that we need to carefully understand our context before we pass judgement. c. Different value systems emanating from the cultural orientation. Our world view is different from person to person, sometimes radically. d. Different time zones especially if they are from a far flung country. At one point of the world, it is day while at the other end, it is night. This makes it nearly impossible to do things at the same time unless all parties have deliberately agreed on this. e. Relativity. Things mean different things and absolutes are difficult to strike. There are no absolutes anymore. What may be ok in Zambia may not necessarily be in Malaysia. f. Language barriers: Some places do not take kindly if you do not speak the local language, it is worse if you do not even make an attempt to learn. g. Religious affiliations. If international staff or merchants belong to another faith or do not subscribe to the local religion, they are perceived as strangers and not fully accommodated. h. The legal framework. In some cases, the local laws are against foreigners always reminding you that you are but visiting for a season, no matter how long you linger around. All the challenges mentioned above cannot be handled by the faint hearted who will quickly quit and head back home. You must be thick skinned like a crocodile. But that is not all, when the international worker faces other set backs whilst away from home or when they return to base. To this we turn our attention in the next section. Set backs encountered by individuals on international assignments: 354
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In global management and business, expatriates are an integral part though this trend is changing. Now locals or third country nationals can act as managers because they are sometimes better emissaries and will know the way better. Although an international career is plausible and admirable, ironically, many would-be expatriates are reluctant to leave their countries because of the following undesirable traits that go along an international assignment: 1. The “out of sight out of mind” syndrome seems to grip the sending company head office. There is a sense in which the person on an international assignment is “forgotten” about as soon as they leave the head office doors. For instance, the expatriates do not get information on time, are treated, as not part of the “home team” and neither are they consulted on major decisions, even on ones that affect the very stations they lead. In short, there is an absence of that sensible feeling of belonging but rather replaced by the feeling of alienation. 2. Lack of career development. It seems that those that remain at base usually receive preference treatment in terms of training, have better access to resources, are in constant touch with the “known quantities” at head office and thus develop rapport, network as well as friendships to the end that they are naturally recommended to higher tasks while the expatriates in the fringes of civilisation are relegated to the promotional terraces. When the said expatriate returns home from abroad, this discrepancy is so vivid as one compares with peers. Obviously, one feels “robbed”, cheated and demotivated. 3. Another hair-raising issue is the re-entry “inconveniences” that accompany settling back home. When the expatriate family has been away from home for a number of years, many variables will have changed and as such, there is need to prepare for another “culture shock”. Some of the inconveniences faced will be the change of status, earning power, new job descriptions or unpredictable and ambiguous challenges daily, the change of station for the family in terms of friends, pace of life, school, food, dress codes, liberties and even attention given. Sometimes the expatriates may not have had an opportunity to own property whilst away from home due to restrictions. In some cases, they may not have saved up to buy a house and when they return to base, they feel as though they have “crash landed” thus shooting up the stress levels. Relocation can be traumatic and stressful if not prepared for psychologically way before. Obviously, no one wants to be or feel disoriented or stranded! We all want to be in control of our destiny.
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4. Further still, the adaptation failure by family to a strange environment is an issue to be pondered upon long before venturing out on an international assignment or else the sending company stands to lose a lot of money as the expatriate family abandons ship for home. In such times, the family completely fails to adapt and as such the family must get back to base where the entire family feels comfortable. This is a very painful decision for the head of the family because whilst he/she can cope, the others will not be able to stand the stress thus contributing to the morbidity rate of the said family. This aspect cannot be over looked, as the family is an integral part of ones’ livelihood and team. It is therefore recommended that the family under go adaptation-training sessions long before the shift takes place. As we all know, people naturally have an inborn “inertia-meter”1 to change but if sweetly and meticulously handled, the family might just buy the same lenses and begin to view things in the same light. Although we have already alluded to it above, we must stress that the business leader of today and tomorrow must be at least multilingual. The process of learning another language apart from the mother tongue can be quite unsettling for many a person, especially for the American who assumes every one somehow knows or should know English. The natives equally expect the same of the expatriate at hand. The dictates of learning a new dialect shuts many a door of prospective expatriates because taking up the job may entail the family radically switching to another language. Further more, it may be that the success of the job hinges on the mastering of a foreign language as well as the cues thereof. Some one must learn languages such as French, Spanish, Chinese or Italian to succeed. This is an insurmountable task for some. The precipice is too steep. As though the aforementioned points were not enough, the Manager must learn the culture, values and attitudes of the locals to be effective. The cultural aspects cannot be dispensed with that easily because for many an entity, success rests on the cultural, dialect and cue knowledge. It is interesting that the natives are very keen observers of anything new. If it is a person from another cultural setting, somehow, unconsciously, they feel that person must know their expectations in terms of their own culture. As such, if the international manager does not display any knowledge of the local values, the natives feel threatened, insulted, belittled, despised and thus develop animosity towards the manager although s/he might be the herald of 1
Coined by author to emphasize the natural inward inertia and reluctance to change.
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good tidings. As a result, the locals will not look at the products objectively and not be responsive towards the marketed goods. They will, as it were, keep an “arms’ length”. Thus, the product may turn out a dismal failure as very few will buy or market the product to others. Keep in touch with expatriates so that they do not feel “left out”. As was intimated in (3) and (4) above, the expatriate families feel cut off from the base, much like an astronaut would feel without either the lifeline or the Space Manoeuvring backpack. They feel unsafe, unimportant, irrelevant and without assurance as to whether what they are achieving is plausible. Naturally, we all need some commendation or a pat on the back. Further more, people feel encouraged when they are urged on or consulted on some seemingly trivial matters. The fact that they know something about what is going on will settle many a hiccup. Having asserted the above from the perspective of the expatriate, we now proceed to state that it is costly to maintain an international work force as well. The following reasons come to the fore: 1. Cost of living allowances are high: To send some one on an international assignment is costly business because you pluck them out of their “natural habitat” and plant them in a foreign environment. As such, that loss of home creature comforts must be atoned for by ensuring that the new setting is as close to and as comfortable as the home country. For example, the children of the said expatriates may have to attend the international school as well as provide incentive allowances for being away from home. In the distant past, the author of this review perceived an international assignment as a great privilege above all else. The present mindset is that not all is rosy when one considers all the parameters and the opportunity cost attendant to the international job. In as much as it is more lucrative, there is the emotional cost and family ties that must be dealt with rather ruthlessly for a while. But that not with standing, the well adjusted International merchant will brave the “weather” and stand firm against all odds, all things being constant and equal. The International manager must be ready for change at all times. As some one has aptly quipped, “the only thing that is constant is change”ΠNot even much money can replace the home serenity. Yet maintaining an expatriate abroad is expensive business, akin to sending the Space Shuttle for six months in space.
Π
Anonymous
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2. Salaries in “Dollars” and higher than average: As earlier intimated, to post some one on an international assignment means what they get is more attractive than at home. If there is no incentive, many would opt to remain home or quit all together. Let it be known also, that the higher pay acts as a potent motivator making it worthwhile to remain abroad. As will be noted, those that earn much on their eight-hour job will rarely look for another job in their free time but those who get very little will scrounge for as many jobs as they can to survive, all the while disillusioned and discouraged. By that token, it is justifiable to pay in an international currency such as the Dollars and at a higher rate, depending on the cost of living. For example, if one lived in the Nether lands, they would need to earn a lot to be comfortable because of the high cost of living. Were we to convert the same to our local currency such as the kwacha, it would shock many of us at the multi figured salary! 3. Transport, lodging of expatriate to and from country of origin as well as locally: Obviously, the expatriate family must be well catered for during the transition period, whilst abroad and on the way back home. All these are huge costs but necessary. One has to bear in mind that these selfsame people are the ones carrying the company flag and image wherever they lodge. Naturally, we all like keeping up good appearances wherever we lodge and so, will do our utmost to provide a conducive environment. Underlying this whole process is the motivation of the potential expatriate family so that the impact is minimised. Challenges and hazards in People Management Like any other field of human endeavour, People management has its own peculiar challenges which no person is master over. It demands a concerted effort by all regardless of one’s placing. Anthropology teaches us that a human is a complex being with various hidden facets, many times hidden to the naked eye. What may intrigue the mind today may be boring tomorrow. What stimulates one individual may be repulsive to the next in keeping with that old adage “one man’s meat is another’s poison”. To a great extent, especially in these relative global times, this saying holds true. Absolutes are difficult to clearly strike today unlike in the past, more so in these “culture confluence” times. To help us in this section, we crystallise some common challenges that have vexed the people management landscape for many generation as this evolving profession continues to mature. These facets should help us plan better in future days: 358
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1. Fads These are the fiery trends that take the generation by storm and seem to be the ultimate panacea for any given problem. A Fad is really a passing craze that soon or later fizzles out as people discover that after all, the apparently silver bullet was in fact brass. Usually a one off success is perceived to be the panacea for all cases and shared far and wide with little or no regard to the circumstances that surrounded the situation. Fads disappear as fast as they rise but in some instances, it takes quite a while before people finally accept the truth. The tragedy about fads is that they carry such force that they have the potency to woe entire organisations into pouring myriad resources to develop and strengthen some unproven practice. In some worst case scenarios, the organisation losses so much resources to the extent they reach the brink of bankruptcy. It is prudent then to check out facts before being swept away by the currents of the day. But a caution is also handy in the same breath, let us avoid analysis paralysis. 2. Not living the talk. Inconsistency (Management by bossing aloud instead of Management by walking around).The other pitfall that bugs HRM is the inconsistency that is exhibited by the incumbent superiors who seem to have more talk than they live it out. In other words, their lives and professions repel. A case in point would be the inconsistencies in treating staff over say training issues. People learn and are impacted more by a consistent life pattern that accompanies the loud words said in public. 3. Autocracy Half the time, especially in Zambia, Managers tend to be autocratic in their management style. They tend to absorb a lot of power around themselves resulting in a huge power distance between themselves and operatives. This stifles communication or strangles innovation. The total autocratic leader usually belongs to the traditional class where their weight is derived from the office rather than personal attributes. In this scenario, the person is given too much power by virtue of holding office and can do as s/he pleases. The selfsame leader rides a high horse, is untouchable, makes decisions alone and passes them down the hierarchy to which all must bow to the “decree” or risk being chucked out. Further more, the autocrat does not interact with the operatives closely but revolves in a unique executive orbit, with little or no touch with reality. The autocratic is egocentric as seen in fig 1 below. Having asserted the above, we must 359
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hasten to say that the same autocratic leaders also do know that they need to motivate people and thus do once in a while declare a bonus or pay rise. Autocratic leaders differ in degree of assertion and yet do have a following as well.
Fig 1 The egocentric autocratic leader always centres on self, authority and power 4. “Liberalcracy”1 The opposite extreme of autocracy is what we have coined to call “Liberalcracy”, if ever such a word exists. This is the situation where the manager has no form of control or influence over staff in the name of being a mature team, when actually this leads to freedom rather than freedom. This scenario happens when the head operates at a far different level of professionalism compared to the subordinates that team coaching once in a while. This approach is good in self-managing teams where all the members are professional, self-starters and mature. Further, this would work well in the virtual office where team mates interact in cyberspace. 5. Poor Communications Poor communication eats a way at the integrity and vitality or quality of the organisational life in that the information will either be incomplete, piecemeal or distorted. This has a way to cause divisions in the organisation 1
Coined by the author to emphasize overly stated liberty
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as people do not pull together nor have the same mind set. People feed on rumours. Another aspect about poor communication is that it breeds tensions in the organisation as people are unsure about their status. Feedback is simply not there! The Boutros Ghali case below is an excellent point of reference. Although Ghali had excellent ideas about restructuring the UN, it seems he was either a poor communicator or was in haste to make changes. Thus, it cost him the top job. Take a look at this and see what you would make of it: Boutros Ghali- The Organisational Politician Boutros Ghali unceremoniously left the United Nations' top job at the end of 1996, having unsuccessfully fought to restructure and refocus the titanic global Organisation. He left amidst a lot of speculation controversies and unresolved conflicts with his foes that had mushroomed from every organisational pore. They ganged up to eliminate him. Despite all their evil machinations, Ghali obstinately stood his ground, akin to the stationary pyramids. This was a brave attempt by all standards. But what really happened? What were the root causes? What was wrong with either the United Nations or Ghali himself? The article "Why Boutros fell from grace" from the October 1999 New African Magazine Issue attempts to answer these questions and gives us valuable insights into Organisational Politics and inefficiency. Boutros stepped into office in 1991 with a clear vision to succeed and turn around the world body to a more relevant and strategic position. Having scanned the Organisation, he noticed that among many things, the Organisation had not changed in keeping with the dynamic context, had elaborate bureaucratic hierarchical structures, was largely controlled by the U.S.A, had excess staff, little or no financial discipline and highly selective in its' operations. Worst of all, it was financially crippled needing immediate financial injection or risk closing its' doors. The United Nations’ operations are funded through national subscriptions of which the U.S.A is the major contributor. Unfortunately, the USA had defaulted to pay over a period time but after much protracted negotiations by Ghali, the USA offered a token payment of $680 million. This cash was far from making any significant difference to the chronic financial doldrums. Ghali unreservedly spoke out on this and many other issues that highly infuriated the Security Council as well as the proud Americans. His determination to cut down costs, restructure and re-engineer the 361
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inefficient organisation, though well meant were met with sharp criticism prejudice, suspicion and scorn by all quarters. Objectively, the plans were good in and of them selves but viewed subjectively by his political foes. The game plan was to lay off excess staff, regulate travel, meticulously watch all financial transactions, seek approval from the top and thus make the organisation more lean agile, fluid and responsive to the mutating needs of the world. Back in 1945, the needs were different, needing a totally different strategy but the 1990s also needed equally different strategies to foster world peace and development. The post cold war era needed an organisation that was free from either the USA or Soviet influence. Sadly, it still is firmly in the clutches of the USA to date. What happened and what is the status today? As you will notice, there was resistance to change basically because certain quarters felt threatened by the potential job losses, hierarchical and bureaucratic dismantling as well as being "ruled" by an African! As such, the change never took place and remains pretty much the same today. Despite many token strides towards reform, the Organisation has remained a complex, bureaucratic, inefficient, wasteful, selective and not really focused. Koffi Anan, the man who took over, is viewed basically as an American pawn on the chessboard with no teeth to bite. Closely analysing the hind incidences, one notices a number of pitfalls in the Ghali’s approach to change. Despite having excellent ideas on paper, it seems to me that he largely worked alone, did not consult much, and was too quick to implement change and was largely naive at the potent venom of his foes. His pride scratched the equally obstinate enemies in the face and so, they hounded him out! In my view, the dismal failure at implementation stage could have been avoided if people had been given leeway to debate, train and made to buy into the plans. This was not done hence the "still born" implementation. Change takes time, no matter how radical, and will always be opposed. This is when leadership and management are put to the test. Today, the United Nations appears a Porsche organization from the outside with its fine glittering buildings in New York and yet lies in a financial and operational coma. It needs an organizational surgery with a new cash lease into its system. Continuous change and training is a must. Unless quick remedial action is done to realign it, the UN will remain a white elephant with one foot in the grave while serving the interests of only a selected few 362
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countries. The time to act is now!φ 6. Bossy mentality-“There is a time when our titles do not work” This is another problem area that affects the African leaders as they perpetually want to remain at the reigns of power. To make matters worse, once there, they want to be the centre of attraction with all the perceived and actual benefits accruing to them. Any one who dares cross their path or trespass into their turf gets the shock of their lives! In other words, the leaders are bosses rather than servants. Servitude never crosses the mind at all! In the office, no one coughs or dares question the boss when s/he decrees something. The boss is infallible and “never late but only delayed” as the quaint old saying goes. Another trait of the bossy mentality manifests itself when the Manager takes offence when not acknowledged publicly in both trivial and major issues, all because of an egocentric mentality. 7. Dysfunctional team The office can be a menace or a place of joy depending on how one takes it. The environment largely depends on the leader who sets the pace. If the leader is warped, egocentric and archaic in management style, the organisation is headed for a show down in the negative sense of the word. One of the early signs of problems is when certain things are frequently not done or done wrongly. In such a scenario, the organisation witnesses a situation where by the team is not cohesive, antagonistic, not pulling together or not focussed on the one thing. The dysfunctional team fights itself rather than building synergy resulting from team work. Groups/polarization precipitate dysfunction 8. Bureaucracy and red tape Bureaucracy has to do with the use of strict structural procedures via an organised chain of command. This came about in a bid to foster better control and coordination of the firms as they became more complex. In and of itself, bureaucracy is a good idea but due to human infirmities, it has tended to work against progress as it seemingly stifles progress, innovation and initiative. An individual cannot conceptualise an idea and implement it before it goes through the bureaucratic chain, which may takes months and even years in some cases. In a turbulent and dynamic business time, rigid bureaucratic tendencies are a sure recipe for early market exit. Closely φ
Refer to the Post of October 28th 2004 to Confirm this thought from Anan himself Phrase supplied by Mr Grephan Chindongo 24/06/05
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connected to bureaucracy is the issue of red tape that essentially refers to the excessive paper work before anything is done. This retards progress. For example, at one time, one needed to fill in close to six hundred papers before they accessed foreign exchange to undertake an international transaction. Zambia still suffers largely from this tiring paper work problem. 9. Stress Stress at one time was never viewed as a threat to life until people started to drop dead one by one due to the high tension generated by the endless work demands such as deadlines, meetings and lack of exercise. Today’s professional is constantly thinking of how to solve this or that challenge there by giving no rest to the body. In Large organisations such as the World Vision International, stress is one of the problem areas that has not been given its due attention until recently. The weakness results from inadequate human resource leading to a situation where some people are dangerously stressed and as such have a lower productivity level. It seems stress management has not been given its due attention although mentioned in a number of World Vision publications like the World Vision security handbook.ϑ Stress builds up as a result of someone excessively exerting them selves without rest until the body begins to constantly feel tired all the time as there is no avenue to vent out excessively piled loads. The first sign of stress are dementia (forgetfulness) restlessness & failure to concentrate for long. It is reported that in developed countries like Japan, the stress levels are so high to the extent that it is almost a mandatory decree that people must go on leave at least once annually. Although on paper this maybe true, the vast majority cannot imagine abandoning their office even for a few hours. Thus, many a worker suffers health breakdowns later in life. Many have suggested ways to handle stress, and Maylor suggests the four P ≈s as follows: 1. Plan your way out of a situation – sit and strategise before hand. 2. Pace yourself – Don’t try to do everything alone and at the same time or at once. 3. Pamper yourself – reward yourself for goals accomplished or plans completed 4. Piss yourself laughing – the healing power of laughter is enormous – the Bible says something to the effect that laughter is good for the heart.x ϑ
A shield about me. World Vision International Harvey Maylor: Project Management page 172 x Proverbs 17:22;15:15b ≈
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Many an employees fall into the trap of wanting to achieve too much at the expense of health but a balanced worker will recognise the danger and seek to avert it. But how can a person protect him/herself against extremes? A few ways are suggested. 1. Know yourself, limits, strengths and weaknesses. 2. Do some exercise – don’t ever convince yourself that you are too busy to do some workouts, go to a club etc. 3. Socialise – there is time for everything under the sun. There is time to work and time to relax. Walk around, visit friends, work mates and just take your mind off work 4. Switch off your cell phone or buy another sim card when on leave. Nowadays with the advent of modern technology, we can trace someone almost at any point on the earth. If you are to “switch off” the outside world, then give your mobile phone to another and get another number that is restricted to a select non- business folk. 5. Effectively train others to take over your functions. An effective leader is not afraid to delegate or teach others to do their job. This increases the knowledge base in the organisation and gives more time to the leader to concentrate on other things, thereby reducing the workload. 6. Involve your family at every point. Covey’s book on highly effective families is a handy guide on this. The goal is to have family members empowered to do any work so that they assist in some assignments. Half the time, spouses have no clue what the other is up to. Ironically, we hear of situations where one is dying of stress while the other is perpetually dead bored and on mental holiday. 7. Sometimes, stand back and relax. Take a deep breath, think through things and then commence the work. This usually applies to managers but leaders too do need time to relax. The best time is before beginning the day or when the settings in the brain begin to clog up. Disengage and then restart after some time. I have found great refreshment and reinvigoration afterwards. Meditation is helpful to recharge the brain cells. There are other ways of protecting your health such as taking time to talk to people, about nothing particularly big, attending some social gathering such as church or indeed taking a holiday to some place for a retreat with your spouse. There is great benefit now and henceforth health wise. Remember: Don’t break the horse (your body) God gave you to manage.
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10. Appraisals Instead of serving to advance the organisational capacity, appraisals are used as times to hound out the threats and foes of the people in authority. Thus, an employee works in fear of being marked out and consigned to the streets after that particular contract comes to an end. In that sense then, appraisals play the unfortunate role of short-circuiting people’s life span in the organisation as people recoil fearing victimization. The place of appraisal Periodically, the organisation carries out staff appraisals. These self same appraisals are meant to evaluate how team members have fared in a given time frame, what the challenges they encountered and what they intend to do about issues raised. As with other terms, appraisals are defined variously. Their objectives are equally varied but the bottom line is to ensure improved quality performance within the organisation. What is the precise definition of the appraisal, why appraise and how frequent should these be done? Professor Mwanalushi and Mr McMahon have done a good job about appraisals in their little booklet “An introduction to Performance Appraisal: The human resource evaluation process”ϒ They have said “The appraisal of people at work goes on continuously. Indeed some kind of employee evaluation is carried out in all organisations. This ranges from intermittent, informal and often ill-informed discussion between managers and supervisors about individual staff members to highly formal appraisal techniques based on comprehensive forms and procedures. Each time a supervisor issues a good word or a reprimand some form of appraisal takes place…” from the above, we can see that the precise definition is difficult to arrive at but what the authors (Mwanalushi & McMahon) saying is that the organisation has various ways of assessing its workforce with a view to establish their capabilities in terms of strengths and weaknesses. Appraisals carry different meanings from organisations to organisation. Depending on the objective, the appraisal may or may not hold a significant place. We must be mindful though that appraisals are as much informal as they are formal. What ever we do each day tells a story and creates an image. In organisations like World Vision International where formal appraisals are imbibed, the superior appraises the staff over a period of time, say one year. Depending on the rating, the person’s contract may or may not be renewed. Increasingly, the appraisal period is being shortened to semi ϒ
M Mwanalushi & G McMahon An introduction to performance appraisal: The human resource evaluation process Vol 1 No. 2 The personnel Management in Zambia series 1989 pp 1
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annually as this enables the appraiser to capture much more relevant and useful objective information. In that way, some level of objectivity is maintained. The uses of the appraisal are basically to help ascertain the training needs as well as the growth areas for the individual. Further, the individual is helped to see their own blind spots and then venture to correct the situation. Admittedly, we all are usually blind to our own defects and some times do not even realise our greatest potential unless another hints to us. Thus, in an ideal sense, the formal appraisal is good because it is a relaxed time when people pause to take stock of them selves. The right spirit of an ideal appraisal Appraisals have one major aim: improving performance. Any other use of the appraisal is either derived from this goal or an abuse of its function. The right spirit of the appraisal is to be used as an objective tool to assess the performance of an individual against a set of objectives mutually agreed upon at the beginning of a particular period. This evaluation has a two fold goal. The first is to identify the weak areas of some one with a view to offer any possible support so that they reach the expected competence levels. The second is to check whether progress is being made against set bench marks without which, we grope in the darkness and hope for the best. Sadly, in many places, appraisals are abused. This abuse shows up in many ways especially where people are hired on contractual terms. Instead of using it as a performance improvement tool, appraisals are used to settle old scores as mentioned earlier on. Secondly, they are used as a whip to threaten operatives with dismissal. That said, a right spirit as originated by the designers is to foster objective cordial empowering relationships between the assessor as assessed. Types of appraisal As hinted above, appraisals take various forms but below are some of them: 1. The Peer employee appraisal- This is the kind of appraisal where peers appraise each other and give their thoughts about a particular person. One of the ways is to ask team mates to comment about a person on a standard questionnaire while maintaining anonymity. The questionnaire touches the strengths and weaknesses of a person. This approach is rich in that it helps the person get an idea of what others think about them and have a 360* appraisal. 367
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2. Rating- this is where a supervisor sits with the said staff and they review the period together against certain benchmarks that were set at the beginning of the period. Using that background, a person is tallied and given marks that determine their performance. 3. Descriptive essay- this is a situation where a supervisor writes a descriptive essay about the weaknesses and strengths of a given person and gives it to the staff. A discussion then ensues based on that essay. 4. Ranking- In this approach, the employer ranks staff from the best to the worst based on what the employer perceives as the bench marks. This approach has a way of motivating the perceived good employees while it shatters the “bad” ones. Pitfalls of appraisals Each of the appraisal methods listed above has its own pitfalls but here are the general ones: 1. Some of the appraisal methods are not objective. 2. Some superiors use appraisals to settle old scores. 3. The basis/ terms of reference for appraisal in some cases are not clear. As a result, some come off injured rather than edified. 4. Sometimes appraisals are used to manipulate staff or are an organisational political tool. 5. At times appraisals kill innovation, the volunteer spirit or calculated risk taking. Staff figure that they may not get any points for going the extra mile and content themselves keeping within bounds. 6. The appraisals are not comprehensive/holistic and as such do not capture all the aspects of a person such as feelings, thoughts or factors that led to a particular outcome. Merits of appraisals 1. They are a guide and help people to keep focused. 2. They ensure that only the relevant and competent staff retained. 3. They help in assessing the staff needs. 4. They help in team building as people begin to realise their potentials. 5. They add value to the organisation in that the appraisers and appraised are challenged to soar to higher orbs.
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6. Appraisals are a contact point for the supervisor and the supervised. Hither to, they may have been caught up in the hustle and bustle of the workdays but at the appraisal, they as it were, cool down and reflect together. 7. They have a way of helping people realise their strengths and weaknesses. In this way, people take note of their growth areas and diligently work on them. 8. They motivate. Once given audience, aggrieved staff feel fairly treated. Effective and timely Communication in the organisation There are various ways organisations communicate using the formal or informal channels. The formal include e-mail, notice boards or memorandums. The informal is by and large through the grape vine. People talk and exchange many ideas, thoughts and feelings that are never documented. This is a powerful communication channel though highly susceptible to abuse and sadly, cannot be 100% eliminated unless the corporation was made up of zombies only. The other aspect worth noting for organisation development is the operations aspect. As people get exposed to the actual finer details, they have less speculations and turn into advocates rather than gossip mongers. Operations includes the actual day to day functioning of an entity be it a factory, airline, NGO or government. The gears move to the extent that the operations function is efficient. But apart from efficient operations, the organisation must watch its corporate structure. Ensure that this kept lean, realistic minimal layers, appropriate and well fitted to handle the dynamic structure. Some structures dangerously remain static when the context has mutated a thousand times. 11. Systemic corporate culture. This refers to the settled corporate culture of an organisation that has been there for ages and once new trends are introduced or suggested, they are violently rebuffed. A case in point was what happened at the Bank of Zambia years ago where top management attempted to introduce the employment contract arrangement. One has no telling exactly why the employees rose up in arms against the proposal but one thing is sure, people’s natural inertia was at play given the corruption background Zambia has been baptised into. Granted the idea was good and in keeping with the modern trends, but was the proposal introduced in good faith? Perhaps the age-old slothful dust layers were disturbed for the first 369
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time. People are accustomed to life long employment dread/loathe insecurity in any form. Below are some of the elements that constitute the adverse systemic corporate arrangement: i. Red tape: the extreme use of procedures, paper work and processes that slows down progress. Some processes are repeated in certain cases but you cannot get what you want unless all the steps are satisfactorily done. ii. Over rate a position/job: Sometimes due to under handed methods of recruitment, some jobs are not properly evaluated and as such assume higher than expected profiles. This becomes evident from the powers one possess or the take home pay compared to other equally qualified peers. Although some one’s pay is ideally strictly confidential and to some extent depends on how much one negotiates, some jobs are unduly remunerated when some of the more critical functions remain in the dust. The former World Bank Chief’s girlfriend saga comes to mind (Paul D Wolfowitz) iii. Create a position for some one and vice versa/manipulate. Some organisations are interesting, in one breathe, they are down sizing and laying of staff but the back door is employing some one paid equal to as many people laid off combined! In other instances, some people are simply untouchables in that as the reorganisation axe passes through, they simply abandon their current position onto another spuriously created position, just for them. One they leave, that position is phased out as well! The author has witnessed this in almost every organisation that he has worked in and wondered how some smart fellows kept escaping the hangman’s noose! iv. Transfer or forcefully second one to a soon phasing out project/department. When one crosses the line, the powers that be, in a bid to avoid litigation frustrate some one. The most common one is to transfer them to a soon phasing out unit or project so that there is natural wastage. The second common “punishment strategy” is to transfer them to a remote place where they are sure the poor fellow will be too frustrated to stick around. All they management do is to send the decree and happily wait for the detonation. The job is done. v. Deliberate information black out. Some times, information is used as a weapon. Since we are entirely dependant on the right relevant and timely information to make decisions, some people just deliberately cause an information death that chokes their targets. As a result, critical information is 370
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missed leading to wrong or delayed responses to queries. When the appraisal comes around the corner, they are charged with lethargy and hounded out. In some cases, the target becomes too frustrated and quits as they cannot stand hearing information from third parties. vi. Direct power jostling. In many organisations, whether small or big, endless tussles take place everyday. The root causes vary as the number of fights. Usually people get caught up in debacles because they want to assume power, control and direct resources. Knowing that power puts many things under their influence, people wrestle to get it. Even in the so-called self-managing team, some amount of power struggle takes place though in a highly modified form hardly visible to the untrained eye. It becomes particularly bad when work and teamwork is fundamentally disrupted due to power hungry fellows locking horns. vii. Advertising one’s job unawares. This happens repeatedly, where the HR and some departmental heads or even mere individuals differ over something. Without informing the incumbent, their job is flushed in the national press inviting people from all walks of life to apply. The current job owner either is too shocked to apply or unaware until some time after the dead line has passed. The advertising is designed to frustrate some one or cripple them if they do not have the right papers. Sometimes, these cowardly acts do not pull through as their motives are soon discovered and dispelled. But generally, such a move injures the incumbent’s esteem and makes them feel vulnerable. viii. Cartels-Frame, self-protectionist tendencies, network within the organisation. A naïve person soon falls into deep weeds because to their utter shock, they discover deeply entrenched curtails that hit them from near impossible angles. They soon discover that they can be easily framed or easily out numbered by the invisible networks as well as self-preservation antics. This happens all over the globe regardless of culture or ethnic grouping just that they take different shades. ix. Nepotism∅ and ethnocentrism-inter and intra relations/kins folk, compare with the Japanese. Ethnocentrism is the notion where a particular race, nation or culture feels their way of doing things is the best and others’ is ∅
Refer to The Post editorial of 8th December titled “Nepotism”. It is and excellent write up and attacks this vice especially those in the corridors of power e.g the Zambian President.
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inferior. It also means that the race in question feels superior to others as has been the case of the Caucasoid against either the mongoloids or the Bantu. Nepotism on the other hand has to do with one with a tendency to favour their own clans members to the exclusion of all others. This manifests itself in the appointments and elevated positions one places their relations. Sometimes, it is not direct but is discernable to the curious eye. Zambia has suffered a great deal at the grisly hands of this vice. Suitably qualified people are left out for jobs in preference for their relations. Sadly, each successive president specialises in employing their relatives and friends at the expense of national development. In Zambia, most of the relatives hide in the missions abroad as evidenced by the Post Newspaper editorial of 8th December 2007. x. Tribalism: Closely connected nepotism is tribalism where some one in power has a tendency to favour their tribes’ mates. Whenever a hiring session is on, some how, the majority of those short listed and later hired belongs to their tribe. Admittedly, this is a dicey point because decisions are usually not made by one person but by a panel making it difficult for one person, no matter how senior to bull doze their way. Sadly, people still cry foul. In another sense, it is difficult to sail 100 % clean because to some extent, we are all related especially in Zambia. Some times, this is compounded by the fact that all other tribes are not clearly academically or professionally qualified, what happens then? People should tread carefully on this one. xi. Moving at different rates in relation to the whole organisation-Staff have not yet bought into. Dictatorial management styles tend to keep information to them selves and lead by decree. As a result, they often discover that they staff seem out of phase and fail to tick because they do not have access to the right empowering information, training or education. Thus, the tyrant is miles ahead while others are blank and thus have not bought into the idea. No wonder they grind to a halt once the fellow has left the fort. xii. Needless job evaluations. In this instance, it is meant to phase out some people’s jobs without getting ones’ fingers burnt. This is a cowardly way of nailing targeted individuals and in a way wasting resources. Wasteful in the sense that the external evaluator will be brought in to either validate one’s job or to eliminate others while using huge sums of money to do the job. In one sense, this could be classified under white-collar crime. In an ideal situation, the evaluators must be independent, professional, ethical and 372
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objective. They must evaluate the organisation, generate a report giving their recommendations. Once the recipient organisation receives the report, a cross section panel will analyse the findings and give their feedback. In progressive organisations, the various teams will seat and brainstorm so that no one is left guessing. The reason why most people dread clandestine job evaluations is that they turn out to be witch hunts. Further, most of the people in Zambia for instance still believe in clinging to one employer for life. Thus, they are ambushed by the evaluation without an exit strategy. Modern Strategy suggests that one plans their way out from day one and as such work towards that end during their tenure. Further, In most of the developed countries, one is not expected to cling to one employer. Exceptions exist in places like Japan though the trends are slowly shifting as globalisation makes its maiden voyage there wards. 6. Brain storming session A brain storming session by definition refers to that session, mostly informal where all the team members converge and generate as many ideas and lay them on the table for consideration and refining. This said session takes a number of stages and could be in one sitting or multiple. Depending on the chosen mode, the first session is usually an ice breaking exercise where people loosen up so that they can freely bring as many ideas to the fore as possible. Once the atmosphere has proved safe, humane and friendly, the team members begin to pour out their ideas over the agreed subject matter. All ideas, whether good, bad, crazy or what are taken in and jotted down on a flip chart. After the ideas have all been captured, the facilitator then guides the house to another stage, that of refining or marrying the similar ideas. After one session mode has been pursued, then the house further refines the ideas. Care must be taken not to negatively critic ideas as this may discourage future participation of some people. However, if the team is well adjusted and mature, the public elimination of the irrelevant ideas can proceed there and then. Having arrived at the final list, the team then adjourns giving room to think through the crystallised thoughts, refine them and come up with a write up. At a later date, another meeting can be convened to look at the write up and ratify it. As earlier intimated, different organisations carry out these sessions in different ways. In Africa, generally, people do not usually take kindly to criticism even when their ideas are wild and way off mark. Thus, wisdom needs to be exercised to yield the best and continued participation. The author once worked for an organisation that prized frequent brain storming sessions though the tragedy is that most of the sessions ended up mere academic exercises, no implementation or follow 373
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up. This tended to make people reluctant to be part of the sessions or respond to enquiries. None the less, brain storming is a necessary organisational development tool.
A brain storming session in progress, Namuso ADP team 2006 7. High staff turnover. In a highly competitive job market, to retain the best players on your team can be quite a hustle as people easily evaporate and condense somewhere else where they feel better appreciated and valued. In such instances, managers have limited powers to hinder some one from relocating unless they can offer a more competitive package. The best they can do is not recommending some one to the next potential employer if at all they are referees. As highlighted earlier, people engage or disengage a company depending on what they are looking for and at what stage of development they are at. Where the organisation loses major key players in a short period of time, disaster looms some times leading to a phase out of some departments, which in itself is detrimental. The earlier the drain is plugged, the better. The write up below shows some common reasons why people quit organisations:
Reasons why employees leave
Organisations go through different seasons as they evolve over the years. This largely depends on the context and industry the organisation is in. If it is a donor funded organisation, conditionalities will apply too. If it is a profit making entity, different conditions as well will dictate how and why staff are remunerated. Further, we can consider the environment, economic, legal and 374
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political structure of a country where the entity is located. For instance, if the place is war torn, politically unstable and highly volatile, it attracts other terms too.
World Vision staff meeting 2006 It is often sad when an employee tenders in their resignation, if they have been star performers while it turns out a grand relief when a time waster leaves through natural wastage. Many have undertaken to research and crystallise the major reasons for departure. Among these is Leigh Branham in his monumental work “The seven hidden reasons employees leave” and perfectly summarized by the Sound view executive book summaries. It is an insightful article that explores what he calls “seven hidden reasons”. The hidden aspect could refer to the unspoken or documented reasons that almost never appear in the exit conference, where relevant. But are these “hidden”? Not exactly, except that they are discovered by personal experience or informal interactions with the people that leave. Neither are the seven reasons exhaustive as listed by him but suffice it to say that these reasons are indisputable. They give and insightful excellent view to the manager so that they may be vigilant to watch out lest they receive a rude shock when the resignation letter “suddenly” lands on their desk. They are startled because all along, they were too preoccupied with their own world and did not realise that they had drifted away from their operatives. It is instructive to learn that when people finally scribble their resignation later, they will have passed through various stages of disengagement. For them to finally document means that they will have thought through their decisions, options and career 375
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prospects. It is difficult for any external force within the organisation to turn the mental tide, the bridges would have been burnt by then-Point of no return has been reached. Among the reasons Branham points out in his book as to why people leave include the following: 1. Disillusionment. When people join organisations, they come with a lot of expectations and an agenda. For a season, most of them assume all the common problems that bug the average organisations will have been a thing of the past. If it is their first job out of college, they diligently run along for some distance without noticing any flaws. But alas, the time comes when they begin to realise that things are not as rosy as they initially thought. Much exposure to better organisations even worsens the situation and consequently leads them to the human resource exit door. Others leave because their working environment, interpersonal relations or expectations are not cordial or good enough. Thus, when a competitor organisation comes along and dangles a better deal, the person swiftly takes the next flight out of the organisation. 2. Secondly, people often quit when they realise that their training and current job do not match. Others find that they do not have the right fit and thus by and by degenerate into frustration, antagonism, boredom or a clear struggle where others sail plainly. Some jobs demand that some one be technical, analytical or time bound while others are more relational and dependant on what the day brings along. If a technical person is put in a social/non technical job, they eventually feel caged and quit. There are exceptions to the rule though, those with versatile fertile minds are able to wiggle around and still tick. 3. In the third place, some people feel abandoned and unguided when they commence the job. Where the systems are refined and working, some organisation fall into a pitfall of assuming people will “automatically fit in” and thus offer very little or not orientation. All the organisation is interested in are results. Even the best self starter often feels stranded, abandoned and alone. It is worse where the corporate culture is too formal, impersonal and restrictive. Once thrown into the deep end, they are expected to swim to safety and produce wonders. There is need to have a consistent coaching arrangement where people are helped to settle and walked with along the way. This builds a sense of belonging and reduces staff turnover. The other pitfall is lack of proper constructive feed back on many 376
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issues. This leaves people wondering whether they are making headway or on the wrong path. Sadly, in some organisation that abuse “management by exception”, people discover that they are in the wrong when they receive a warning letter or a sudden strong reprimand. This kills morale and people begin to visit the newspaper job advert page and eventually flee at the earliest opportunity. 4. A pyramid structure arrangement often blocks people’s prospects of advancement. If the structure is too elaborate and narrow, people will see the road block from afar and quickly look for an alternative that will cut the long route. Often time, external organisations with better and fewer/flatter layers are more appealing to the ambitious. Many people are in a hurry to get to the top as soon as possible and thus eventually leave. The figure below attempts to show what an average organisation structure looks like: Directors/CEO
Top
LayersMiddle Layers-most people here
More than just upward movement is the possibility of fluidly moving across the organisation for one to enrich their job experience or develop within the organisation. Rigid organisation curtail any attempt to move and thus frustrate people. The last straw comes when all possibility advancement doors are blocked on account of internal organisational politics, prolonged and frequent reorganisations as well as other external threats and limiting factors such as donors, market loss and permanent road blocks. 5. In the fifth place, people leave the organisation because they do not feel valued or recognised. If they do not get “at home” they will grab the earliest place where they will be given the due dignity, support and appreciation. Many organisational structures are bureaucratic and 377
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laced with a thick layer of red tape. Brain storming sessions or staff involvement are non-existent, people are ruled with an iron dictatorial hand, from the traditional management school. Progressive organisation however, value each team member from sweeper upwards and consult widely from the internal customers. It is even better where self managing teams exist as opposed to mere work groups. As people feel the sense of community, are heard and valued, they naturally become reluctant to quit and in turn market the organisation to the outside world. 6. In this fast paced global world, people find themselves always on the run. Decisions that once took a year now take seconds and by that token speed up the work pace. Deadlines are the order of the day coupled with a shrinking job market in places like Zambia. In a bid to maintain their competitive jobs and make the mark on the industry, many do it at the expense of other equally important issues such as family life, leisure time, leave or even engaging in refreshing personal projects such as home building. A dilemma is created that raises the stress levels and in some cases wrecks people’s health. Prudent and marketable people quickly quit. Sadly, the stranded stick around until they totally break down. There is need to rest. All work and no rest kills the horse God gave you. 7. The last reason advanced by some authors is loss of mutual trust. When employees look at their superiors, they look at them with some measure of cynicism and suspicion. Whatever the leaders say is taken with a pinch of salt and never relied on. Leaders often lose their followers’ confidence when they are insincere, unsure, inconsistent, intimidatory or manipulative. Because of the betrayal, ill treatment or breach of trust, a power distance is created and scarcely can be mended. Frustrated staff instantly fly away at that point. Having looked at the reasons advanced, I would like to add a few more reasons that I feel significantly add to the high staff turn over. People leave when they feel unfairly treated by their superiors. Insecure leaders are constantly sending intimidating gestures and messages that discourage the lower operatives who eventually quit. Secondly, staff quit when unethical practices are tolerated by the organisation such as window dressing of accounts or no proper documented referral policies on file. Decisions depend on what the boss feels not policy. The third reason could be insecurity. Traditionally, many people in Zambia have 378
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been accustomed to life long employment and often feel insecure to be given short contracts lest they prematurely lose their living. The prenineteen ninety two (1992) hang over still lingers in many Zambian minds and needs to be quickly exorcised. The fourth reason is simply that other competitive organisations have emerged which offer far more monetary rewards for the same type of job. This enables some one to invest quicker, build their empires, build profiles or indeed better exposure. By the time the contract expires, they will have had immediate benefit and moved on to the next level. For instance, if working for my present employer offers me a steady lower paying job while a shorter contract job offers me ten times as much as my current job, I will elect to get the shorter contract and more money in one month than I would have earned in ten months. In effect, my value for money is higher now than at a later date. Many out of college graduates prefer the big jobs for instant gratification. The fifth reason could be that some organisations offer variety, challenges, are more versatile, lean, agile flexible and fit in well with the present trends. People get incentives that betters their lives albeit they be hidden such as transportation, leave pay, loans, bonuses, holidays or medical. The sixth reason is when the persons’ personal goals do not agree with the organisations’. The person finds the bad practices, behaviour patterns, lack of leadership/direction, laissez faire attitude etc rife and unabated in the organisation, they feel disappointed, disillusioned and fear corrupting their own good work culture/ethics. Thus they leave despite having a secure job. This culture thrives in the civil service where people live at their own pace. They dare not quit as they value the perceived security. The progressive professional feels crippled in such a setting and soon quits or conforms. That partly explains why NGOs are reluctant to hire candidates from the civil service as though they suffer from a plague. These are but a few of the additions but we would safely conclude and say that the global worker of the 21st century is looking for the best possible personal deals they can get hold of. They are offering a skill and as such need to partner with progressive companies that are relevant to the times. In fact, many of them commence their careers with a clear agenda in mind-to employ rather than be employed. If their goal is elusive, they leave in search of greener pastures. Methods of best practice
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Methods of best practice refer to those tried and tested ways of carrying out a procedure compared to the previous equally good practice though less efficient. In progressive organisations, the thirst for new innovations, ideas and creativity never gets quenched. Thus, these entities embrace what has come to be known as the “boundary-less organisation” because it gets and adopts viable ideas from any where regardless of the source. This has turned many companies into some of the most competitive entities in the world. In this section, we crystallise some key best practices worth sucking in by any progressive firm or entity. 1. Interdependence/net working: The first is interdependence and networking practices. For a long time, especially in Zambia, many companies have prided in functioning as stand alone solo operators. This has been perceived as the best way to demonstrate their financial potency. But experience and research has shown that in the global economy, you cannot do without other players and stakeholders. The pervasive information age demands collaboration, smooth information flow, strategic alliances and networking for maximum dividend yield. Stand alone entities are usually always in the reaction mode rather than the proactive. 2. Competitive /Comparative advantage: The second is to identify your competitive as well as the comparative advantages that favour your organisation. Where you have absolute advantage, by all means maximise on that score while strengthening the weaker areas. Knowing your distinctive core competencies helps to avert a lot of needless failed strategy headaches as you instantly know where to push you weight, when and where. 3. Re-engineering/e-engineering: Some times, the organisation has to be rewired through out so that it finally reinvents itself such as changing the way it operates, functions or responds to issues. To achieve this, a lot of processes, systems as well as strategic thinking, structure changes and reorganisations have to take place, some drastic while others easy and straight forward. A number of re-engineered entities have turned out successful after pruning off excessive baggage. 4. Down sizing: Closely connected to reengineering is down sizing where organisations with perceived excess staff prune down on the numbers so that the company over heads go down. This also affords the entity to 380
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improve the conditions of service, remove bureaucracy and red tape as the case may be. Many organisations opt for this difficult but inevitable route. Difficult in the sense that social contracts are dismantled and consign many to an early grave or perpetual paupers’ den. When the sweeping privatisation process took place in Zambia, many privatised entities shed excess staff in a bid to be profitable, efficient and cost effective. 5. Bureaucracy/agility/leanness: As alluded to in the previous point, red tape, bureaucracy are killers and must be loathed. The organisation must pursue an agile, flexible, lean structure that quickly responds to the needs of the times. 6. Reading the environment and the times: A strategic trained eye is a key component for success on the market. There is need for diligent and meticulous watching of the trends, scenes and happenings taking place within and without the organisation. Armed with the fresh, relevant and timely information, the organisation easily surmounts all odds. It can also supplant some industry leaders in some cases as Google did to Microsoft or the Post to the State run papers. 7. Mission statement and objectives of the organisation: Organisations live or die depending on what they aspire after and what safety gadgets they put in place. A clear direction is critical from the outset so that everything fits into the overall strategy as implementation takes place. Thus, the organisation must state its objectives, mission statement and vision clearly before any step is taken. Thompson has an excellent definition for the “mission”. He states that the mission statement is “the essential purpose of the organisation, concerning particularly why it is in existence, the nature of the business (es) it is in, and the customers it seeks to serve and satisfy”∩ . Night mares, resources wastage and blind shooting would be largely avoided once these are in place. 8. Constant self evaluation: One other best practice for progressive organisations is to constantly carry out periodic objective self evaluations with a view to either redesign the strategy or change course altogether. To get a good evaluation, consistent progress monitoring through out the implementation phase is critical because it is upon these monitoring ∩
Thompson preface PP X
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statistics that a good objective evaluation will be based. If the evaluation is qualitative, impact stories will be handy. The other aspect that dares not be over looked is to set realistic targets as well as appropriate indicators. 9. Incorporating customers from the product design stage: In modern TQM circles, it is strongly recommended that your target customers be substantially involved in the product design. This cuts down on potential losses resulting from a wrong unattractive product. Assumptions are removed. In addition, the customers feel party to the product and thus develop product loyalty which in turn attracts more customers. Always remember that the customer is king and no assumptions about their tastes! 10. Hire known quantities: There is some power in hiring well known people for promotional purposes. If they are engrafted into your team, be sure to reap some benefits that follow them over to your side. Their goodwill, clout and magnet attract some major clients to your organisation. Further more, these people possess rich, rare experiences as well as expertise that would be invaluable to your organisation. In that sense then, the organisation ensures it hunts for the Known quantities that add synergy to the organisation. The higher cost in hiring them is worth it as this extra cost constitutes the goodwill. This value may not be immediately visible to the naked eye akin to the marketing expenses incurred on a product brand promotion. A case relating to one Mr Clement Mugala highlights the point:
A modern change leader Although Zambia lies paralysed in the many poverty layers among the 41 poorest nations of the world⁄, it is comforting to know that men and women of valour still exist there. Men and Women of purpose who are clear minded and know what the times demand. At this miserable rate in which the nation is wallowing in abject poverty, one is hardly queried when they exclaim, “can anything come good out of Zambia?” Among those giants of our times is Clement Mugala who has been at the helm of Building Society turn around from certain bankruptcy. The said company was at the brink of ⁄
As at 1998
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destruction when Mugala appeared and quickly instituted emergency remedial measures so that the company is now safely back on the trails, having recorded prior annual losses reaching an all time record of K 2.4 Billion in the 1997/98 financial year! But who is Clement Mugala? From whence does he hail? What secret has he employed to rescue the once renowned “lifeless” company? For one thing, Mr Mugala hails from the northern parts of Zambia, married to Ruth, a powerful help mate and possesses an unrivalled CV. Yet none of these qualifications radiate as brilliantly as his management style. He studied a degree in Economics, an international professional Accounting course (CIMA), and now holds an MBA from the Edinburgh Graduate school in Scotland. Further more, he has vast experience in Government and private Accounting. As such, we can see that he is an “all rounder”. More importantly, he is a man full of integrity, objectivity, insight, foresight, determination and focus. Unlike other men, Clement is not easily daunted by difficult tasks. He confidently ventures into any situation, assured that armed with knowledge and vast experience, any hurdle is surmountable. But, the question still lingers, “what is the secret of his success at the Building Society?” How has he managed to arrest the decay and steer the ship back to safety? The reason is soon told from the article “ZNBS ekes way out of the financial doldrums” which appeared in the Zambia Daily Mail of 05/03/99. From the article, it is evident that the man has imbibed and pragmatically practices modern management principles. For example, he believes that teamwork is the way forward for the business of tomorrow. This belief shows itself in the way he associates and views his subordinates. He would rather be viewed as a leader not a boss, which culture, hitherto, has plagued almost all organisations in Zambia. This traditional approach has further been fostered by regular and constant political interference in the smooth running of the parastatals. Like hungry rats looking for nuts, these politicians hover around any seemingly profit-making company. The Building Society is no exception. Constantly, these “rats” are laying mousetraps for humans! But Clement has flown above all these and has brought about team spirit that is beginning to pay dividends as output increases. Teamwork means that there is mutual trust, single common goal, less individual brilliant star performances and easier over lapping. Slowly, people are venturing out of their shells where they hid dreading victimisation from illiterate politicians and are now taking liberated bold steps towards teamwork. As though teamwork were not enough, Clement has through his management, adopted an “open management” approach where people from all ranks and levels feel free to contribute, criticise, complain and be heard. 383
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Furthermore, the Mugala led team has introduced some incentives such as multiple salary increases in the year thus boosting the workers’ morale. Since the battle is not yet over, there has been a deliberate move to train and refresh staff so that they are customer-focused rather than morbidly inward looking. The effects of these capacity – building manoeuvres are seen in the speedy and friendly way that staff respond to customers, and when privately asked, the majority of employees speak in glowing tribute of the company. They say ‘we have the best products and a powerful top management team….” waxing melodiously eloquent by the minute. Emanating from this training is the freedom to innovate and have many products; most of which are as ancient as the company itself while others are new. The old ones have been refined in keeping with the times. New products are churned out frequently. Thus as one walks into the hallway of the Building Society, it is a pleasant hive of activity and yet intense particular individual attention is given to every customer. Here, the customer is king. With all these past rapid changes as well as the powerful strategic eye to the future, the Society almost pulled out of the doldrums within a year-now that is record time indeed! But what type of scenario did Mugala exactly find when he first stepped into the building society executive office in mid 1998? What hurdles has he encountered thus far? Firstly, we note that he found a divided house that was crippled by evil organisational politics. The Management and the union were at daggers drawn and constantly fighting with no strength left to do any positive work. The union spent all its time squabbling about wages, pointing fingers and daily fuelling more animosity in the company. If a PhD could be earned through antagonism, the union could have bagged a multiplicity of them! Furthermore, the top management was paralysed by external influences from the politicians who actually run the company remotely. As such, there was no strategic planning because the rules came from outside. Therefore, it was pointless to even read the external business environment. Why talk about planning when some one else calls the shots? Thirdly, the company was bankrupt with no resources, withered reserves, overdrafts, multiple law suits, a bad reputation, lost customer confidence and worst of all, erratic or no Government grants, which have ceased with the introduction of the cash budget. Those managers who sat securely like king frogs on their “thrones” were the most alarmed when the youthful looking 384
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Mugala stepped onto the stage. Sensing that some of their unnecessary jobs would be slashed off with the advent of re-engineering the villains raised their antenna akin to danger sensing police dogs. Hence the resistance. Fourthly, the people who were previously at the helm of the organisation were half the time not equal to the task but rather political appointees because of their patriotism to the party in power. This trend sadly has persisted to this very day. The lament is that these clown executives were not original but did the bidding of the state and even more tragic was the fact that many had no heart for the entity. Of course, many with greater credentials than Mugala have traversed the path that he now treads but none perhaps has been as salty as he. Having proved himself both in public and private practice, the Government, in its usual unconventional ways, called him to resuscitate the ailing company. By all counts, the Building Society was headed for the company bone yard. Time has gone by and many problems have crossed his path but he remains focused towards the goal. Problems such as low pay, low morale, bad attitudes, evil suspicions and resistance from the “old guard” still linger. Happily, these green headed vices are slowly being mortified. Having painted a gloomy picture in the last section, we now proceed to show the way forward for the said organisation. As earlier intimated, the Mugalaled team is strategic in approach. The company is now risen from the ashes and is now eking a unique path that will guarantee sustainability. Clement’s long-term goals are to make the company independent, agile, and fluid as well as be ahead of any possible new market entrants. The quest to that end is clear as he leads the company in embarking on an ambitious US$ 1.5 million project to computerise the entire organisation. Although the initial costs are whooping, this is powerful competitive advantage tool in the long run that will increase efficiency across the entire company network. Since the 17 or so branches are littered all over the country, efficiency will result due to being online. Thus, speedy service and fewer hiccups in responding to customer queries and orders will accrue to the company good will. Also, IT is necessary for decision making in these turbulent times. “Ignore… IT at your peril”θ, the common adage says. Further more, with employee capacity enhanced, moral raised and the right “known quantities” on board to
θ
Banking world October 1990
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champion the new management practices, the entity will be a formidable force to reckon with in days that lie ahead. As Mugala aptly concludes with the touching words, “ Whatever is true, whatever is right whatever is right, whatever is pure, whatever is lovely, whatever is admirable, if anything is excellent or praise worthy, think about such things”, we long for more of such clear minded dynamic business leaders with a passion to salvage ailing businesses out of the corporate casket! 11. Social responsibility and ethics: Social responsibility falls in the ethical domain and by that token, is a grey area for many. The multinationals sometimes have serious struggles with the social responsibility issues because they have their own expectations about the host countries. The Multinationals expect the host governments to provide the basic and strategic infrastructure which includes Health care system, roads, town planning and care etc because they pay tax. With respect to social responsibility, the enterprise deliberately takes on some social cause with a two fold bearing on the organisation: Image promotion and tax avoidance/reduction. In this vein, the business undertakes to construct a school or donating to an orphanage. These are seen as good kind gestures by the community at large. This lifts the company profile, freely markets the goods and builds brand loyalty. It is good thing to be identified with something good. 12. Techniques to identify and evaluate strategic options: Strategies come and go as the years role on. The plans that worked in yester years might turn out to be lethal enemies for your down fall, hence the need for periodic fresh organic strategies. An organisation must deliberately opt for the best razor sharp, oven fresh strategies that maximise market share, share holder earnings and internal customer satisfaction. It is there fore critical to identify appropriate processes for evaluating strategies as well as the options at hand. Never be satisfied with only one strategy, always have a back up strategy. 13. Information technology/paper less and the virtual office – auto/soft backup within the systems and offshore: State of the art technology without question is required and must be acquired as soon as possible. While the initial capital expense may be intimidating, the pay back is far higher and better for generations to come. Technology has made life 386
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easier in many senses which make the paperless office and virtual a possibility. People from different parts of the world can communicate via the internet and video conferencing for instance thereby drastically cutting down on the over heads. There is of course the down side of this good tool but for now, we focus on the brighter side. Get the state of the art technology and so stay of top the heap, you will never regret. 14. Policy documents: Companies with good policies go far, have the least litigation issues and are generally cheaper to run. A policy is a guiding principle frame work from which the organisation operates. Usually, these policies reflect or are derived from the corporate culture and philosophy. If the company emphasizes accountability, this will show in the policy. If it emphasizes self managed team work, again this will show as one reads the policies. It is therefore imperative for the mangers to have a deep appreciation of the organisations’ vision and mission statement for them to properly draft and interpret the policies. Further, the said policies must be contextual and fit in well with the extant laws. 15. High employees turn over. This refers to a frequent change of staff in a given entity. The employees work for the said organisation and suddenly quit for varied reasons but the bottom line is that they leave. As to what the root cause could be, it is beyond the scope of this book to discover but suffice it to say that when certain basic needs that people look for are absent, they tend to look over the fence where the grass is greener. This is especially true in the Western world unlike in the far-east where a family kind of setting exists. In Zambia, people are increasingly shifting from the one company loyalty, unlike the parents used to be, to various different companies in a short time. The other reasons could be poor HR skills by staff as well as the rapid changes in the environment. The grass is greener yonder syndrome. An average person from cradle to the grave spends most, if not all their lives surviving and accumulating resources to themselves. The death reality is far fetched from many a mind and are instead constantly looking out for any new opportunity to hurtle to the next level. The grass is green over the fence syndrome reigns supreme in these degenerate days.
At the close of this chapter, we note clearly that People Management is a far more complex issue than many of us assume. It cross cuts sociology, 387
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psychology, economics, philosophy, and management and thus demanding. The seasoned people manager must have an intelligent grasp of all these disciplines and have them reverted upon the tablets of their hearts and reduced to practice. Indeed, People management is an interesting area of study and is a life long study. Will you be the next legendary People Manager? ====================================================== Bibliography Accounting, CIMA-January 1998 issue, page18-19. Babbie Earl, The practice of social research, Wadsworth Publishing Company, 4th edition, 1983 Bower, Bartlett, Uyerterhoeven, and Walter, Business Policy: Managing Strategic Processes, 8th Edition, Richard D. Irwin Boydell H. T., IDENTIFICATION OF TRAINING NEEDS: A guide, British Association for Commercial and Industrial Education, Braham Leigh, The 7 hidden reasons why employees leave, Amacom, 2005 Brake Terence, Managing globally, Dorling Kindersley, London, New York, Munich, Melbourne & Delhi, 2002 Bramham John, Practical Man power planning, Institute of Personnel management, 3rd edition, 1975 Bryans P. & Cronin T.P, ORGANISATION THEORY: The study of human relations within the business organisation, Mitchell Beazley, 1983 Cateora R. Philip, International Marketing, 9th edition, 1996, Irwin McGrawHill, Boston, Massachusetts, Burr Ridge, Illinois, Dubuque, Iowa, Madison, Wisconsin New York, New York San Francisco, California St. Louis, Missouri Cox Frank, Psychology, WM.C. Brown Company Publishers Dubuque, Iowa, 1970, USA 388
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Deveraux O’Hara Mary & Johansen Robert, GLOBAL WORK: Bridging distance, culture & time, Jossey-Bass Publishers, 1994, San Francisco Dowling J. Peter, Welch E. Denice and Schueler S. Randall, INTERNATIONAL HUMAN RESOURCE MANAGEMENT: managing people in a multinational context, 1999, 3rd edition, South-Western College Publishing, Cincinnati, Albany, Boston, Detroit, Johannesburg, London, Madrid, Melbourne, Mexico City, New York, Pacific Grove, San Francisco, Scottsdale, Singapore, Tokyo, Toronto. Drucker F. Peter, Managing oneself, Harvard Business review, January 2005 Dunkerley David & Clegg Stewart, organisation, class and control, Routledge & Kegan Paul, London, Boston, Melbourne and Henley, 1984 Executive excellence magazine, April 2000 Executive excellence magazine, May 1999 Feay Benard, Too old and over qualified?, Management Accounting, March 1995 pp 49 Flippo B. Edwin, Personnel Management, McGraw-Hill, 6th edition, 1984, International edition Heller Robert, Effective leadership, Dorling Kindersley, London, New York, Sydney, Moscow, 1999 Heller Robert, Managing teams, Dorling Kindersley, London, New York, Sydney, Moscow Hesselgrave J. David, Communicating Christ cross culturally, Zondervan Publishing house, 1982 Hodge W Charles, Systematic Theology (Abridged edition), Baker book house, 1992 Husband J. I., LABOUR ADMINISTRATION: A general introduction, International labour organization, 1980 389
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International Labour organisation, International labour standards, Geneva 1978 International Labour organization, COLLECTIVE BARGAINING: A worker’s education manual, Geneva, 1960, 11th impression International Labour organization, GRIEVANCE ARBITRATION: A practical guide, Geneva, 1977 Justa Kopulande, ZNBS ekes a way out of the financial doldrums, Zambia Daily Mail, March 5th 1999 Kamau John, Why Boutros fell from grace, New African October 1999 Kreitner R. and Kinicki A., Organisational Behaviour, 4th edition, Irwin McGraw-Hill, 1998 Martin Peter, Performance appraisal, Management Accounting, March 1995, pp 67 Morgan Gareth & Burrel Gibson, Sociological Paradigms and organisational analysis, Gower Publishing company, 1982 Mouzelis P. Nicos, Organisation and bureaucracy, Routledge & Kegan Paul, London, Melbourne and Henley, 1985, revised edition Mwanalushi M. & McMahon G, AN INTRODUCTION TO PERFORMANCE APPRAISAL: The human resource evaluation process. Volume 1 # 2, The Personnel Management series 1989 Mwanza Humphrey, Career management, Zambian Farmer, April 2006 Orpen Christopher, Want the best? Get stressed! Chartered Secretary, August 1996, pp 18 Rao T.V & Perira, Recent experiences in Human resources development, Oxford & IBH publishing co. Pvt. Ltd, New Delhi, Bombay, Calcutta, 1986 Sleight Steve, Moving to e-business, Dorling Kindersley, 2001
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Todd Benjamin, Dolle Guy, learning to be a team player, CNN, May 30th, 2005 Turrel M., TRAINING ANALYSIS: A guide to recognizing training needs, Macdonald and Evans, 1980 Yoder Dale & Staudohar D. Paul, Personnel Management and Industrial relations, 7th edition, Prentice Hall of India, 1982 Zambia Daily Mail, 05/03/1999
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Chapter Thirteen
“A razor sharp strategy repeatedly takes us to the next success level” Strategic Benefits That Strategic thinking and management are beneficial goes without saying as this, to a limited extent, guarantees present and future success of any entity at hand. Many benefits come to mind when one considers these in point form. This chapter, in summary, high lights some of the clearly visible dividends emanating from strategy. In demonstrating this fact, the chapter has been divided into two benefits with sub benefits under the heads. These are internal and external benefits. We commence with the internal: Internal benefits of strategy These are benefits that benefit the individual internally, and basically the chief reason why we engage in strategic thinking. Indeed, egocentric reasons prompt us to strategise. 1. The organisation ensures that it remains alive and successful both in the short and long run. Strategic organisations have serious workable succession plans. As the environmental business winds change direction, so also do these entities and securely perch at the right places from where they launch further into deeper waters. Organisations with long range thinkers rarely panic but stick it out in business for a longer period because they are able to read the times and know what to do, some times long before the crunch arrives. We saw earlier, in an earlier chapter, that the Catholic Church is very strategic, always self mutating ahead of time thus remaining relevant. The central core objective never changes-to spread the gospel of Jesus Christ. Some times, the author wonders what would happen if the church suddenly closed its doors and went away from Zambia, there would be chaos! The reason is because the church has a potent strategy reaching the far flung areas where even the government has never been. The same reason applies to the large limited multinational companies. They stick around because the originators saw far into the future and thus opened stock holding to many share holders. In that way, the now familiar Zambian “property grabbing” syndrome is 392
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forestalled and the company continues. If fools take over the estate, the best they can do is sale their stock holding and take off with the loot, meanwhile the corporation has perpetual succession. Sadly, many an incomplete or dilapidated structure on the Zambian landscape has a story behind it. Most of the time, it points to the fact that when the pioneer died, everything ground to a half due to domestic plunderers. No wonder Zambia is a plundered nation, even by our political leaders who prefer to mortgage this nation to foreigners without due consideration of the implications of their actions! Many of the mining deals were signed behind closed doors with spurious conditions such as 10 to 15 years tax exemptions or very low loyalties painfully come to mind. With all due regard to unavoidable DFI⊕, some deals reek with corruption. All this folly could have been avoided with a crystal clear strategic thinker cadre of leaders. 2. The organisation remains healthy and strong over the long whole. It is believed that on average, corporations survive for between 50 to 100 years. Very few prominent ones like the General Electric Corporation (GEC) and General Motors (GM) bust that average without much ado. Half the time, organisations struggle to defend their turf. Strategy helps the organisation to weather the storm through different turbulent times. Every crisis threatening to smash the organisation is spotted from afar and avoided. Further, learning organisations foresee most of those potholes and factor in some mitigating ‘shock absorbers’ facilitating room for continuity. Perpetual succession, in and of itself, is good concept but hardly tenable, especially on African soils for now. That said, the organic entity responds to stimuli, reorganises, reinvents itself and strives to keep in as healthy a state as it possibly could be. Remove strategy and you dig a deep grave. The organisation simply tumbles over the precipice. Same applies to the individual. 3. The organisational team will have a sense of belonging and identify with the organisational goals. In other words, there is a sense of direction and purpose as a corporate community culture is nurtured. Strategy has an amazing way of fostering goal congruence in the most efficient, enjoyable and safe manner. Those without strategies shoot in ⊕
Refer to the apt editorial comment of the Post, June 10th 2007 # 3888su288 entitled “Foreign Investors”. A pithy write up indeed.
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the air and are constantly reacting to threats rather than setting the pace. Team players share their vision and by that token get as many on board who relentlessly pursue the common goal. Direction is easier seen where a potent strategy holds sway. 4. This enables the organisation to spot opportunities as well as escape calamities long before they appear on the scene. In that way, the company’s life is safe guarded. The average procrastinating mindset always wishes for the best while doing nothing to counter or forestall any perceived or actual future trouble. The Bible∏ talks about foolish people who continue walking on the danger path despite being warned long before they meet death. Strategy is a light in a dark place that clearly shows you the available options and the consequences for each direction you choose to take. With an enlightened brain, you have the luxury of spotting trends, activities, indicative behaviour patterns from afar and quickly averting disaster for your self and others. Strategists are some of the best colleagues to have around you because they will intuitively see things that you may be blind to at the time. 5. Strategy makes the organisation grow whilst maintaining a lean posture as well as remaining responsive to the changing and dynamic contexts within and outside the organisation. In the absence of strategy, the company grows bureaucratic, rigid and unresponsive to the times. The organisation does not keep in step with events, as no safety gadgets are in place. 6. Strategy makes the organisation confidently mutate over time and keep alive while retaining the organisational objectives. Some one has rightly said, “Objectives remain the same but not strategies.” This is true because as we have established earlier on, strategy is but a means to an end, it is a vehicle that takes us to point B from A. With the correct potent strategy, the organisation then confidently and quickly moves into position for success while eking out fresh emergent strategies that further expand its influence wings in the market. An organic strategy never remains static just as the dynamic world never stands still. Strategic entities are thus very confident, focused and responsive, no wonder they linger around for many generations.
∏
Proverbs 22:3, Holy Bible
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7. Ensures corporate obesity avoidance: Strategy knows that danger lurks at every turn and as such, is always on guard watching out for Murphy’s Law. This law, full of surprises can bring about untold confusion even among the most seasoned managers to the extent that they develop blind spots in obvious places. With the right strategy, the organisation moves and develops at the right pace relative to the external environment as well as the internal corporate capacities. Many firms, in a quest to expand fall into the obesity trap that instead slows them down leading to eventual death. On the other hand, Strategy nips the potential dangers in the bud so that the organisation sticks around for many more years hence. 8. Fosters business sense, critical, strategic and systems thinking. A strategic mind always sees good and bad things where other mere mortals do not see anything. Where others flee, the strategic eye sees opportunity after opportunity, challenges are stepping stones to success while failures are valuable lessons for better prudent planning up ahead. In addition, strategy develops a critical mindset, a logical and consistent thinking pattern not bound by tradition or one’s background orientation. S/he intuitively sees through thick walls to appropriate what others consider impossible. In short, strategy builds an “outside the box” thinking mind set that pragmatically reduces to practice what it reasons out in a timeous and contextualised manner. The following write up highlights some of the ideas advanced in this point:
The astute business eye Business moths are a rare breed but repeatedly see money every where, identify and seize opportunities at every turn where others have no clue. This is true in Zambia where people literary “sleep and step on money” every day but still grope around in abject poverty all the way to the grave. For instance, when one Japanese development expert visited Zambia years ago, he kept wondering why on earth Zambia went around begging foreign aid when it had everything! In his opinion, the opposite should have been true. In his view, Zambia had so much potential to feed itself, export and dominate the world market in certain areas such as agriculture, tourism and mining, of course bearing in mind the distinctive competitive competence and advantage. He recounted that as he was still mid air coming to Zambia, he 395
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observed vast stretches of idle land with sparse populations dotted all over. In his view, like an earlier colleague, the Zambian population could comfortably and easily fit into one province while the rest of the provinces were used as investment and development land. With the abundant factors of production, Miyoshi could not comprehend why Zambia trotted around the globe with a begging bow. Neither could he understand why people rushed to work abroad when the actual opportunities lay in Zambia! In his view, most of what the western world did was at a secondary level, to merely refine the raw materials from Africa and other richly endowed nations. Why settle for a secondary matter instead of the actual? Therefore, there is need to open our eyes as money, wealth and riches are all around us. What is simply needed is to reach out and grab them. We need more than just ideas but the actual ability to turn vision into reality. One time, we were driving from a far flung isolated project site when a thought struck me, why couldn’t we turn the vast idle forest stretches into productive game reserves or turf where rare plant species grew? Why not start a nursery or some grand but low cost project that would benefit progeny? Many things can be done within the nature ambit and derive the best benefit us wards. The problem with our crippledly pessimistic minds is that we are quick to think that we can’t! We always think a person from outside with lots of money will do that for us and then we get employed reaping slave wages! The Zambian wrongly always looks to investors to ignite everything for us while we complain and yawn all day! Why not initiate and then later invite other investors so that you form a consortium or partnership where you have an equal or greater stake in the matter? Granted that the globalisation blizzards have largely eroded our ability to competitively exploit resources, but we can surely make a start. Further, and of prime importance, let us garner as much land as we can because land is power. Let others come with all their investment while we retain title to the land. The land tenure problem continues to bug us because most of the powers are vested in a few who are more ready to dish out land to foreigners rather than the indigenous. For a native person to get even a small piece of land, a lot of blood has to be spilt but not so for the foreigner! A case in point is the Mwanawasa land scandal∈ ∈
What immediately comes to mind is the huge chunks of land dished out to the Libyans (though Mwanawasa has denied dishing out the land in these latter days, perhaps to escape liability in future) in the central parts of the country (not to mention the millennium village which probably sits on Lusaka Girls and Boys schools play grounds) as well as the prime farming land in the central parts of Zambia to the Zimbabwean white farmers that moved north fleeing Mugabe’s radical land reforms. Chances are that the Zambians will be labourers reaping slave wages in the name of “employment created” What has actually happened is that the people’s means of survival and heritage have been grabbed away. They have no option
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where portions of land have been given to so-called investors while the vulnerable and weak indigenous people are harassed, haunted and evicted/hounded off their God given land. Why should some one walk into State House and within a few minutes walk away with thousands of hectares while some one whose multiple generation clans and family have lived in that area fail to get even a few square metres of land? This is a huge abnormality. Why should the archaic and inhibiting laws only apply to the poor? This calls for diligence and alertness on the part of Zambians. It is high time to awake and claim what is rightly yours, yea, your crown rights. Go to any western world and see if they will treat you the same. Chances are that they will not even give you a hearing unless you show that you have the above normal cash and that you will reinvest nearly 100% of your earnings within that country, unlike what obtains in Zambia where almost 100% of the profits are externalised and no eyebrow is raised in the name of “liberalisation”. That said, the astute and keen business eye sees opportunities where others may only see hurdles. I am always intrigued at how certain business freaks seem to beam with delight where the rest of us see hazardous risks, and losses. They are driven by some latent force to thrust out their hand and appropriate the unseen. The rest of the world only sees the staggering results and stand amazed, while beating their breasts as to why they had not seen the point earlier! 9. Fosters internal consistency and right fit in a given context: A well crafted strategy enables the organisation to have a sense of symmetry, coordination and right fit in a given context. In a sense, a strategy is both a good and dangerous thing because depending on the direction you take, it will swiftly take you there! In a bid to efficiently get to your destiny, the back ground work involves properly fitting things together in readiness to launch out. The various organs harmoniously work together to get you to the next level. Thus, the right strategy fosters internal consistency as well as the correct fit in the environment. 10. Self knowledge, imitations, strengths and options. There is need to know yourself thoroughly before you take on any major challenge. It would be gross folly to discover your shortcomings when it is too late. but to enlist as farm labourers who are entirely dependant on the master’s bidding. In one sense, the land development and utilisation will be faster and better but in another, the local people’s power is truncated forever.
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Thus, strategy helps the organisation to rightly gauge itself and know where to polish up or avoid. Further more, strategy helps the organisation to be responsive to the times, figure out newer options as well as what path to pursue. This in itself builds vigilance, focus and purpose. For now, the above mentioned points suffice though much more needs to be brought to the fore. At this juncture, we now delve into the “external benefits” to see much more clearly just how valuable strategy is. External Strategy benefits 1. Brings about faster development. No doubt, strategy fosters immense development strategies in the world. With the correct thinking, planning and resources, strategy enables people to think long term and by that token work upon their projects in a coordinated and focused manner. In other words, strategic individuals spot multiple opportunities seizing them to their own advantage. Time is of essence. The average mind thinks the world owes them some thing and thus make no effort to better their lot. They live for the day and often ambushed by the world’s harsh realities, when it is too late. As for civic and government leaders who control resources, strategy helps them how best to courteously compel people to undertake intended development tasks failure to which certain repercussions follow. Scan the Zambian landscape, especially the urban areas as from the early nineteen nineties what do you see? Notice the difference before and after 1991? Further, postmodern countries such as Japan or the USA have developed thus far, largely because of very good strategies that leave millions wondering in the developing world. Have the right strategy and attitude, your results will be explosive! 2. Promotes good will, perceptions, brand name and confidence: In the second place, a good strategy pays dividends in one-way or the other. Among the pay offs include the raised good will, image and perceptions. The strategic entity confidently under takes projects knowing that though the stakes are high, the pay back will be really good well worth the risk. That explains, in part why the global investor ventures to the far-flung areas of the world to reap an extra dollar. The global companies, some virtual others physical, etch a global brand that resonates with almost any one that has access to the powerful marketing machinery. These marketing strategies influence customer behaviour patterns, impact on different cultures and 398
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create thirsts hither to unseen, mutate some cultures there by bringing about somewhat homogenous perceptions, tastes and responses from any point of this terrestrial ball. 3. Attracts more would be investors: Strategy, in the third place attracts more investors, both local and international. As the world fast hurtles along to a global economy, political boundaries give way to international trade routes so that people can do business from any point of the world, settle or relocate as they see best. The pervasive information technology revolution offers as much information as one would love to have for them to make strategic decisions in relation to international business. As for the country that desires to rise from the ashes or get ahead in this modern world, strategy is the search light that brightens the path ahead. Remove strategy and you instantly become a spectator, always complaining at the world’s unfairness. A strategic entity is a head liner rather than a spectator. For a fuller treatment of Direct Foreign Investment (DFI), refer to Appendix 2 # 4 4. Enables tangible control in turbulent and uncertain times: Strategy brings about stability in many an entity because by the time the crunch arrives, that organisation will have already provided for that eventuality and at that stage already have been looking at other things many years ahead. I never cease to be amazed by a certain venerable Zambian Pastor who notices trends from afar and puts things in place immediately thus forestalling any future panic quake. Come that rainy day, the storm only rocks the boat but not flip it over. In my working experience, I have met people who always seem to be in control and never panic, no matter what betide. The hurricane Pwanya case comes to mind where many laid off managers failed to swim to shore as they had not strategically forecasted. How did the remaining few manage to survive and anticipate danger from afar? It was strategy at play. 5. Enables new industry evolutions: Apart from attracting more investors as demonstrated in point 3 above, strategy has a way of birthing new ideas which eventually turn out to be improvements on the existing situation or better still, the creation of new industries, previously unheard of or imagined. For instance, space tourism is fast becoming a norm but a few decades back, it was practically unheard off. As time goes on, around 2024, according to the latest NASA projections (2007), people will live and work on the moon and from there launch manned flights to the outer reaches of the Solar systems and galaxies such as Mars, Jupiter and beyond. Other worlds, in the likeness of the Star Trek series, will be visited. Now friends, 399
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that is a totally new and multibillion industry! Closer to home, as body parts are regenerated or head less bodies are cultured/cultivated and grown in labs for business, it will be a money spinner! What about if witch craft, “African science” (magic) and all are properly harnessed removing all the bloody rituals and superstition, that will rake in billions if not trillions in the post modern world. Some of the ideas mentioned in this section are presently dangerous and breach many ethics and dare not be attempted at lest we rouse God’s eternal wrath. That not with standing, strategy positions one to peer into the future and go where no man has ever been before. 6. Facilitates continuous improvement of extant products, systems and services: In the sixth place, strategy fosters continuous improvement on the present scenario as alluded to in an earlier point. Strategy sets standards, bench marks and indicators which the entity seeks to surmount or better still improve upon. The weak points are strengthened, the threats are mitigated and the opportunities seized without much ado. Kaizen, the Japanese word for continuous improvement is internalised rather than a parroting word. Quality standards rise by that token. Without strategy, the direction, checks and balances would not be there as well as not being able to even know whether we are making headway or not. 7. Strategy teaches us from the past: We are what we are because of the past. This includes, our habits, tastes, perceptions and to some extent, our aspirations. Strategy gives us a cursory view of the past, highlighting pitfalls, lessons and danger points where others have trod. In that way, we avoid past mistakes thus providing room for a greater and better future. The author recalls how that many youths he interacted with in the outlying areas of the country generally focused on two professions: Teacher & Police officer. He often wondered why. Upon further enquiry and research, he discovered that is the only light they had and thus wanted to be like their visible local role models. In other words, they were stereotyped by the world view and mould they were born into. The tragedy is that they could not think outside the box and neither could they critically analyse their preferences because of their weak basis of comparison. Strategy opens the mind to the whole wide world, helps us avoid past pitfalls and aids us in setting clear, realistic stretch goals which we meticulously monitor as we hurtle along. Learning from the past
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Some time ago, I woke up a great while before dawn with the sole purpose to catch up with some long outstanding assignments. As I settled to do my work while comfortably perched on the bed room carpet, I felt something ticklish pass between my feet, play around a little and then zoomed off. I frantically tried to see what it was but no luck this time. I continued with my pressing work. After a few minutes, the same thing returned and followed the same strategic manoeuvres. I shot up in a second and noted the back parts of the cockroach as it vanished among the carton boxes. Instinctively, I swung into action attempting to kill it but alas, I had nothing to use! Annoyed with my self, I got back to work but without any appropriate weapon to annihilate the intruder in case it returned. No sooner had I settled than my dear cockroach friend reappeared only more daring this time round. In fury, my eagles’ eye detected its location and tried to kill it but nothing to use once again! I learnt my lesson and got a slipper by my side as I worked while scanning the environment. As before, the golden slippered cockroach returned but this time received a rude shock as it was whacked to death! Most times we do not learn from past mistakes for better and effective proactiveness in future rather than be retroactive as is the case with many of us. He is a great strategist who learns from the past and avoids a repeat of past errors. The astute strategist notices the gaps the first time, yea even before any surprises show up and prepares for murphy’s law to rear its ugly green head any time. In other words, the TQM world teaches that ensure you do something once and move on. This entails doing a perfect job either having learnt from the past or any anticipated eventualities. I always marvel at how Zambians tend to repeat the same mistakes over and over showing no sign of remorse! For instance, some time ago, the Senanga road had a huge pot hole that developed right across the road near Mongu. For a long time, repeated shoddy cosmetic momentary repairs were done on it. It is believed that billions of kwacha (hard earned tax payer’s money) were gobbled as they went down the drain without any tangible protest from the public. When election year came round in 2001, the politicians, once again using tax payer’s money rose to the occasion and did some rather extensive work on that section to the satisfaction of the electorate. No sooner had the section been redone and elections over than the crater reappeared! It was yawning even more! No tangible work was done on that section for a while until some high profile person tumbled into the ditch other wise nothing would have been done to date perhaps only if some one mere mortal died there or election year drew near. Now, looking at the hair raising cost implications of
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repeated mediocre work, one fails to understand why we do not learn from the past. The strategic eye would rather do a perfect job the first time and wisely apply opportunity costing to do some other tangible thing with the self same scarce resources. 8. Avoids wastage and prudent use of resources. With a strategic eye, the nation or individual can drastically turn their fortunes from rags to riches. The quick eagle’s eye converts all opportunities into what they are supposed to be. Botswana is one country that has tried in this area. They have made the diamonds Royalties work for them despite harbouring many adverse circumstances militating against economic progress. Zambia, on the other hand has wasted many opportunities such as the stupid contracts with “Investors”. Chances are that by the time the country attempts to renegotiate, it will be too late, the season will have passed for ever. Once again, the Post newspapers editorials of June 10th and 12th, 2007 have been on the mark. Honestly, Zambian should note where it is today. Man people walk away empty handed despite having slaved away their lives only to “bless thankless wolves”. The rot must be stopped! 9. Preserves the environment. The long range thinking mind will always carry out an objective Environmental Impact Assessment (EIA) to determine the repercussions of intended courses of actions long before implementation commences. They wisely weigh the options and refuse to bow to any dangling carrot, no matter how attractive. The Western world has hugely contributed to the destruction of most of the world’s ecosystems and now the earth is hitting back by global warming, disasters and many other adverse hitherto unprecedented back lashes. Sadly, the worst will invade the poorer ill-equipped nations in Africa. The strategic eye spots an opportunity amidst these threats such as green business, nature preservation etc. Thus, we have once again demonstrated that strategy has much more benefits up its sleeves than usually perceived. If and when you work with a strategist, you cannot help but notice just how confident they appear despite the apparent odds arrayed against them. Strategic firms and countries too leave a marvellous trail behind them and grow by leaps and bounds unlike their one track minded competitors. The Botswana/Zambia case referred to at the beginning of this text is a clear demonstration of what strategy can do. South Korea is now probably the 8th largest economy in the world and yet in 1964, South Korea and Zambia had the same GDP, where is Zambia now? 402
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Strategy, right mindset plus the right pragmatic leadership are the only hope for Zambia’s deliverance. So much then for that scathing but true remark, let us fasten our seat belts as we board the time machine to peer into the future effects, enjoy the trip up future lane! ====================================================== Bibliography Agriculture and environment nexus in Sub-Saharan Africa/ Directions in development, The World Bank, Washington DC Analoui Farhad & Kakabadse Andrew, Corporate Sabbotage: How to recognise & manage corporate sabotage, Jaico Books, 2004 Bhagwati Jagdish, The economics of underdeveloped countries, World University Library, 1966 Building your business, Thorogood, 1998 Ferrel O.C, Ferrel Linda, Fraedrich J, BUSINESS ETHICS: Ethical decision making and cases, 4th edition, Houghton & Mifflin, 2000 Fowler Alan, STRIKING A BALANCE: A guide to enhancing the effectiveness of non-governmental organizations in International development, Earthscan publications ltd, London, 1997 Haggai E. John, Lead on!, Kobrey Press, 1986 Hawksley Flavia, The Science of Success, Accountancy: The Journal of the institute of Chartered Accountants in England and Wales, September 1995, pp50 Hill W. L. Charles, INTERNATIONAL BUSINESS: Competing in the global market place, McGraw-Hill, 2003, international edition Hoogvelt M. M. Ankie, The third world in global development, Macmillan, 1982 403
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Houghton S.M. Sketches from Church History, Banner of truth trust, 1980 Lewis W. Arthur, DEVELOPMENT PLANNING: The essentials of economic policy, George Allen & Unwin, Boston, Sydney, London, 1966 Lomasky Loren & Brennan Geoffrey, DEMOCRACY & DECISION: The pure theory of electoral preference, Cambridge University Press, 1993 Meebelo S. Henry, REACTION TO COLONIALISM: A prelude to the politics of independence in northern Zambia 1893-1939, Manchester University Press, 1971 Muna Ndulo, Mining rights in Zambia, Kenneth Kaunda Foundation (KKF), 1987 O’hara Devereux Mary & Johansen Robert, GLOBAL WORK: Bridging distance, time and culture, Jossey 1994 Oakland S. John & Porter Les, Cases in Total quality Management, Butterworth Heinemann, 1994 Schapera I, Government in tribal societies, C.A Watts & Co. Ltd, 1956, Schaeffer A. Francis, Pollution and Death of man: The Christian view of Ecology, Tyndale House Publishers, Wheaton, Illinois, 1970 Schreiber A. Gotz & Cleaver M. Kevin, REVERSING THE SPIRAL: The population, Slinn Peter & Snyder Francis (editors), INTERNATIONAL LAW OF DEVELOPMENT: Comparative perspectives, Professional Books Limited, 1987 Stewart Peter (Prof), Development theories, University of South Africa, 2005 Sutclifffe Bob & Owen Roger (editors), Studies in the theory of imperialism, Longman Group Limited, 1972
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Whiteside Martin, LIVING FARMS: Encouraging sustainable small holders in Southern Africa, Earthscan, 1998 Winfield R.G. and Curry S.J., success in Investment, 3rd edition, 1987, John Murray Publishers
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Chapter Fourteen
“Discard mere boasting about potential, turn that into reality!”-BS ZAMBIA
2005
2007
2050
Strategic effects We have spent considerable amount of time and space demonstrating the value of strategy. In the present chapter, we now look at the effects of strategy, having seen that it has immense benefits beyond any iota of doubt. Viewed from an objective stand point, strategy has immense effects that affect the present and the future. In every sense, we are where we are today, our perceptions, aptitudes, attitudes, tastes and decision making prowess due to some hind strategic decisions taken by our fore fathers in generations past. Their decisions have had rippling effects to our shore. In a similar way, the strategies we craft and implement today will certainly have effects, knowing that to every privilege there is a responsibility, as that ancient adage says. For example, if we do not strategically plan for the future, our children are likely to be vagabonds having no home (or house) to call their own. This is applicable in all spheres of life. Real strategists worth their salt rarely suffer in future nor frequently land into life threatening crisis, as opposed to the myopic majority who only realise their folly when the crunch comes. They also never leave their progeny begging bread. As earlier intimated, this chapter tabulates the positive and negative effects of strategies. It is prudent to take heed while it is still day, for night fast approaches when no man can labour. In looking at the strategic benefits, we propose to look consider this both from the positive and negative effects. In that way, we think it will be more meaningful offering a contrast. Naturally, we begin with the positive effects.
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Positive effects a. Forward looking. If an entity has a vision, clear goal and destiny, it then has the fertile ground to hurtle to higher orbs. This is because the organisation is able to project the future with a reasonable degree of accuracy and then marshal all its resources towards the set target. A targetless life does not take anyone one anywhere, after all, they are not able to know whether they are making headway or retarding. A strategy helps to set benchmarks, verifiable indicators and a basis of comparison in a given time frame as enshrined in a particular implementation schedule. Granted, it is possible to have all the beautiful plans neatly tacked away and yet still lamentably flounder on the field as success, to a greater extent, depends on attitude and inward heart disposition of some one as well as prior plans critical to success, without which, one runs the risk of aimlessly beating the air, indeed exerting more needless energy than required. Strategic entities are always forward looking, appear in a mad hurry to achieve and have no idle time to while away. Where you find a healthy strategic company, there you find a hive of regulated and efficient effective activity. b. Clear path. The second, but connected to the first effect, is the idea of direction and a clear path. A strategy not only gives the desired end but also opens avenues to explore other paths towards a given destination. In other words, strategy is as much a means to an end as path finder. Clear minded people or entities are not necessarily more intelligent but simply smart, more exposed and having cleared the path before hand. Strategy-less entities are never in charge of their destinies and spend all their life spans merely reacting rather than charting the course so that others react. Strategists are trend setters in many instances. c. Confidence in the midst of turbulences. Turbulence, uncertainty, dynamism and changes in the environment are the order of the day. With the unavoidable pervasive information technology revolution, the information age brings with it hither to unprecedented challenges to the fore. Many companies find themselves trapped in ineffective planning deep weeds and are entangled in their well intended complex plan web. Many begin to implement good plans late or simply stick to long worn out obsolete plans that scarcely fit into the modern highly dynamic mode. The strategic entity on the other hand foresees opportunities, ducks threats and proactively but efficiently positions itself in the market. In other words, the organisation constantly reinvents itself and ensures it is on course and remains at the race 407
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helm. That explains why many parastatals collapsed in the years 1991-1996 as the Zambian economy opened up to liberalisation and privatisation. However, the strategic entities confidently entered the 1990s with an opportunistic eye and indeed reaped the benefits. The turbulent years of the early 90s were eventful times for super profits to the swift, lean and progressive entities. In the same breathe, these self same dates were horrible night mares for the archaic, rigid and non-progressive entities. To date, opportunity abounds in Zambia, if only we looked harder and ventured out of our boxed lives. Too many of us mistakenly wait for the Government to wave the magic wand or give some super solution. We are just wasting our time, better wake up and work! d. Agility, leanness, responsiveness. Strategy makes an entity alert, alive and active to mutate at the right time. It functions as an organism that avoids all extremes such as rigidity, obesity, slothfulness, over trading and top heaviness. Instead, the organisation curves a unique niche, refines its learning curve, maintains a slender structure, agility, foresight, swiftness, sensitivity, timely responsiveness, proactive, niche, high quality, customer focus, a conducive internal enabling environment, as well as a rare organic cohesiveness that ensures the organisation continually reinvents itself as well as spurns all retroactivity, red tape or bureaucracy. e. Stability in an unstable world. Despite the solar winds in the universe, planets still orbit the stars at a particular velocity. The internal environments of these planets differ relative to the distance from the star. In similar light, the earth is full of billions of transactions per day that influence events on the planet. In that complex web, the individual is found and must ensure they survive by making thousands of timely decisions. The 21st century successful business is confronted with all sorts of winds that must be well handled in order to get ahead. Where some fail, that is an opportunity for others. Akin to the invisible hand in the market economy, the strategy world also has an invisible potent hand that determines the world’s affairs. The positive effects only come about when there is conscious timely self application of the right strategy. Note also that not all strategies have the same effect or degree of success but generally, the positive effects bring about stable systematic progressive increase. The pitfalls resulting from lack of strategy now follow. Negative effects (if strategy is absent) 408
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As intimated at the beginning of this text, some entities seem to scale from height to height due to their strategy. Equally true is the situation for those that either trivialise or fail to strategise. What exactly will happen when people fail to strategise? A number of adverse things definitely will. The following immediately rear their ugly green heads: a. No progress. Without a proper strategy, there will be no bench marks, no monitoring, no standards and by that token no urgency in business. The danger about this state is that the organisation will be losing ground and actually disintegrating while the occupants are entirely unaware! The venom is akin to a cancer that progresses incipiently within the body for many years and only shows up in the advanced final stages. In other words, there will be no forward movement, instead, the organisation will focus on maintaining the status quo when in real terms there will be market loss. Cancer is best dealt with in its early stages before it spreads. b. No uniform focus or unity of purpose. This cripples the organisation because people are either disillusioned or do not have complete unity of purpose where people have radically differing personal goals antagonistic to that of the organisation. The organisation becomes disjoint, dysfunctional, fragmented and party spirit easily creeps in. c. Little or no motivation. The fervour that characterises the most successful companies of the world like the General Electric Corporation and Microsoft despite their size is because the warm strategic leadership trickles down to the operatives. The people see and buy into the objectives and do their utmost to execute their part because they are aware of the bigger picture and that their input is as critical as those at the helm of the organisation. They view the organisation as an organism that moves coherently cohesive. What motivates people is not only reward in terms of salary but purpose and how valuable they realise their contribution is. For instance, medical experts for a long time thought the appendix had no function or purpose in the body apart from being a relic from the ancient evolutionary process. In other words, the appendix was a redundant residual tail from the monkey age. But recent evidence suggests that in fact the appendix has a key function in the body. By that token, it will not be thoughtlessly truncated from the body. In the same breathe, motivation is nourished and propped up by direction. Another aspect connected to motivation is momentum. I have noted that once the motivation levels go 409
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down, down the drain also goes the momentum, which once lost is near impossible to recover to the same degree. Our Church at Mongu started off with a very high evangelistic thrust and momentum. For a number of years, the church was on fire and invaded Mongu with the gospel but some unexplainable circumstance killed the momentum. The church is yet to recover its former pulse. d. Dysfunction in the obvious things. There will be confusion, reluctance, antagonism, and lack of pulling together. An example is when the obvious things are done by the leader when others idly stand by watching, with no air of remorse. In such a scenario, the leader, for instance, will resort to mopping the floor while followers sit around in the same room and chat away, unconcerned. In short, the leaders occupy themselves with the trivial and mundane things of life instead of the strategic. e. Cosmetic and untrue capacity building. Proper strategy has some capacity building inbuilt within it. In other words, the strategy will put measures in place where sustainability of an activity is guaranteed for some time before adverse effects become visible. A lack of strategy soon manifests in the lack of sustainability as no momentum remains to continue in the winning ways. f. Lack of strategy does not build leaders. Dr John Maxwell, in his legendary book, “The 21 irrefutable laws of leadership” states that leaders build other leaders and not simply followers. This implies that they pass on the mantle to others who themselves become capable to pass on the body of strategic principles to the next generation. Lack of strategy only leads to dependence, lack of innovation, imagination and the clout to carry out many functions. For instance, when the manager is out of office, work effectively ceases but once the strategy is right from the onset, there will be continuity as people will be self governing and work whole heartedly regardless. g. Where there is no vision, people and companies perish. This is a quaint saying but how so true! Usually, where people spend their time complaining, whining, and wondering how others are succeeding, there is lack of strategy. In other words, they spend their lives wondering at the world and how unfair it is. Stephen Covey strongly believes in principle-centred leadership. This means that the leader must know and believe that there are certain unwritten natural rules that lead to success. The situation described above is what largely obtains in Zambia, at least at the time of writing. We always 410
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complain and wonder how the foreigners progress from rags to riches. One cannot understand how that Zambia, 40 years after independence is still squabbling about the constitution adoption mode while the foreigners are making a killing! In the same land, people are seeing abundant opportunities while others are crying to flee the country as economic refugees. Once one travels out, they soon realise that in fact, the opportunities are back home! Those that are realistic, wise and prudent venture back with a clear agenda while the proud will stick it out. The statement above is by no means the situation for all that work abroad. In some instances, it works out better abroad but these cases are few and far between.∇ The short-term mindset Not often do you encounter people, in our society, whose range of contemplation is very distant. Future preoccupation is something for the few. Our families are bereft of visionaries or long-term thinkers. Short-term planning is the norm. Where the distant future is delved into, it is for frivolous concerns such as aiming to migrate to a foreign country, innocent though this may be. Short-term planning delusively seems to offer greater promise to many small and medium-scale business managers and planners. The same delusion besets those at the helm of running our economy. This explains why one moment we will have a bumper harvest of maize, the next we will have a bumper harvest of starving citizens! One moment winter maize is a success story, the next winter sees neither maize growing nor maize farmer. One moment agriculture is proclaimed to be the key to Zambia's economic deliverance, the next, judging by the level of funding and energy committed, it is elections and politics. The short-term mindset, be it in the family, in the business organisation, or in the management of the national economy, can, unfortunately, be very costly. It is responsible for much of the inconsistency that has allowed costly experiments and the terrible waste. It is also responsible for the great opportunities lost. There is much in our social-cultural fabric to which the short-term mindset can be attributed. Noble though may be the African social safety net of ∇
Renowned Zambian athlete, Samuel Matete seems to affirm this thought when he states that it is cheaper to live in Zambia than in the States. Check his profile in the Post newspaper of 23rd April 2006. Another, Exhildah Siame was even more explicit in her article “ America is not the beauty and splendour seen in movies” that appeared in the Sunday Times of Zambia dated May 12, 2000, an extremely insightful write up.
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having relatives to fall on in time of need, it has contributed, by default, to narrowing the range of our horizons. This is just a downside to a good culture. The days of dependence on the state, in the single party era, hampered our capacities to peer into the future as a routine of life. These were days of limited private enterprise. The state effectively thought and planned our lives. With nearly everything being state-owned and private ownership being frowned upon and institutionally frustrated, the future was largely the indulgence of dreamers and the resolved few. Decades of impoverishment have also discouraged farsightedness. Even if a poor person entertained grandiose plans, to what will they amount where the means to their attainment are lacking? Because poverty demands immediate reversal, it tends to quarrel with long-term steps to its eradication. Though religion is indispensable for healthy living, if not well imbibed it can be harmful. It should not surprise us that the deep religious culture adhered to by many has brought about tendencies of fatalism. Improperly cultured religious students carelessly assume that God will somehow or other provide for them when the time of need comes. Thus they narrow their plan range from decades to months. Whatever the causes of the short-term mindset, we need to start helping one another appreciate the benefits of farsightedness. We need to start cultivating a new outlook enjoying stretched horizons. Farsightedness has the benefits of anticipating or foreseeing possible bottlenecks to an endeavour. It opens eyes to the many opportunities and allows theoretical experimentation long before the time of engagement. It also helps conserve resources for the most profitable ends and adapts the most prudent means to achieving these ends. Long-term thinking, for instance, will help determine whether marriage is the best means to achieve ultimate goals in life. Some valuable ambitions suffer debilitation at the hands of marriage. Long-term thinking will determine the choice of spouse and the size of the family, where marriage is perceived a necessity. Career-oriented people, for instance, seldom have time for family life. Long-term thinking will help the young couple receiving an education allowance for their as yet unborn children to save it or invest it for the days of need. It cultures the discipline of placing money in the designated areas. The prevalent changes in careers would be avoided by many, were wise career guides involved in their lives. With farsightedness, college graduates enjoying their first jobs will not delay setting their eyes on securing an 412
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affordable plot of land or securing a mortgage, where this is accessible. They will not repeat the mistake of their forebears who earnestly prepared for their retirement only months before it came. It is with an eye on the future that assets of a mechanical nature may need to be sold before they turn themselves into liabilities, with a rise in maintenance costs. Preventative maintenance is bred by a futuristic outlook. Over a year ago, I noticed some minor but persistent drops of oil on my car alternator. I kept procrastinating committing myself to the cost of sealing the sources of the leaks. The cost of this omission was replacement of the entire alternator and a lot more, a year later! That's the crime of procrastination or the crime of not worrying about the future. For lack of telescopic perception, many churches have for decades continued to squat in school halls, hardly thinking of owning their own buildings. Many a person has continued to rent properties they could, with time, actually afford to purchase. Money is not the biggest problem. Amazingly, foresight unveils sources of funding often unnoticed by nearsightedness. Have you thought of writing your will? I did not say 'are you thinking of dying soon?' Many years ago I went to a lawyer friend to help me draft my will. She looked at me as if I had just announced to her that I was about to die! No! Wills are not written by those on the verge of dying, but by all sure to die some day, all having property worth safeguarding after their death. If you care for who is to inherit your possessions, it is never too early to put this in writing with legal ink. With carefully worked out decade to half decade plans, our government can direct its capital borrowing to benefit projects that posses the intrinsic capacity to significantly contribute to servicing the debt incurred, while appreciably precipitating economic growth. In short, hindsight should tutor us that foresight should have saved us from some of the wrong decisions we made, commitments we entered, valuables we lost, and opportunities we ignored. Long-term thinking, for those who would like to acquire it, comes not by chance, dreaming, or wishful thinking. It comes from a deliberate decision to acquire it. Broad reading, much broad consultation and discussion with wise knowledgeable people and careful analysis of the experiences of those who have gone ahead of us, inspire long-term thinking. Creation of time to plan is pivotal too. All this may require suppressing presumption, bigotry and impulsiveness or haste. It will also demand great discipline and patience. For one who must reap a good harvest in the future ought to refrain from 413
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consuming all the grain in the present, whatever the hunger threats. Though farsightedness is possessed in larger measure by some, it is luckily an acquirable virtue. If long-term thinking is to take root in our society, it may have to be incorporated in the regular parental inculcations to children. Educators, be they secular or religious, have a duty to also emphasis the merits of this outlook. National leaders have little choice but to provide the example. A nation dominated by short-term thinkers is bound to be engrossed in firefighting, the consequence of which will be squandering of both its resources and opportunities for advancement. Both short-term and long-term planning are vital. But the desperate need is for long-term thinkers and planners. Cholwe Mweetwa h. Poor quality out put that is not time or customer focused. Ignorance is expensive in that the people seek to stick to the obsolete but comfort zones. They will not venture to try out new ways nor take any calculated strategic risks. In the long run, the organisation becomes bureaucratic, rigid and unlearning. The organisation does not willingly learn and assumes the world will want to buy their products no matter how mediocre. Where a proper strategy exists, the organisation imbibes TQM within its processes and ensures they remain agile, fluid, flexible, lean and vigilant. In fact, the organisation moves from a crisis reactive mode to a proactive and prudent mode. In addition, the organisation ensures that quality is internalised in all aspects of the organisational life so as to remain buoyant. i. The organisation will not know its core competencies and as such will either take on too much or too little on itself. The net effect is that the organisation will either be over trading or under utilising its capacity. It runs the risk of corporate obesity. Strategy on the other hand, ensures there is a consistent self-evaluation and audit and constant realignment of the organisation so that it can keep ahead of competitors. Further, the organisation will have the ability to formulate emergent strategies and also have alternative plans in the event of failure of plan A. One case in point is the situation that confronts Zambia today. Scanning the country reveals that the nation is stronger in the service industry rather than the mining and manufacturing. Since it is endowed with vast natural resources such as land and animals, Zambia would probably do much better to strategically shift from mining to tourism and agriculture, which resources other nations may
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not possess. Consider solar engineering for example to supplement HEP which might become inadequate by 2008. j. Failure to diversify or disinvest in certain areas because it does not have the capacity to decide and has no alternatives. The fear of the unknown engulfs the organisation. It is like two people who are accidentally abandoned on an island in the middle of a shark infested sea. The two have a choice to either venture into the turbulent violent and fiery sea with a canoe or to settle on the island, start fire, build makeshift homes and forget about the outside world. In making the fire who knows, it could burn the forest or alert other sea farers of the much sought after help. GEC was brave enough to pull out of any business where they were third worse in market leadership. k. Chaotic, uncoordinated and haphazard work. Where people need a whip in order to work, just know that the strategy is either weak or nonexistent. In that scenario, people are indifferent to work and time. Procrastination is the characteristic mark. But where the strategy is right, people are self starters, diligent and forward looking. In a sense this point has to do with vision and motivation as highlighted earlier on. l. Undue heavy dependence on the organisation, structures and circumstances. In other words, the people will not for a moment think of bettering their lot, or look for ways to independently stand on their own. There is a dependence syndrome developed within that is difficult to disinfect. This is the situation that many developing countries are trapped in. For over 50 years, they have been taught to believe that only what comes from the Western world is good enough, any thing else is substandard! But is that true in all cases? Further more, these so-called developing countries have adopted a faulty attitude and belief that they cannot do any thing unless the “big brother” countries affirm and give their approval. In a strategic environment, the nations take charge of their destiny over time and eke their own path. They cast off the defective mindset, learn from the “know better” countries and build on those ideas. This explains why Japan is what it is today. On the other hand, the IMF and World Bank are busy experimenting on the “guinea pig” nations whose original social fibre and structure has been ravaged and disturbed by modernism forever. Instead, what has taken root is to frantically look out for handouts rather than consciously working hard to generate wealth.
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m. It turns out costly as the entity is reduced to a guinea pig or mere laboratory at the whims of the exploiters. The predator nations take advantage of the situation and wrest power out of the dizzy owners and pull the trigger against them! This has been evident in Zambia where the Government has been carrying out experiments for generations and at the present rate, will definitely continue for generations yet to come. n. Little or no momentum. Momentum is the inward/internal force, energy and purpose to continue in forward motion or push in a specific direction. By this, we mean that that pulse that keeps one doing something with vigour. Usually, the momentum is built up or deflated if the vision and goal are either non existent, blurred, clear, attractive or not. A good strategy is one that sets the bar high, and, to use the language of Jack Welch, sets ‘stretch goals’, that will make you develop by leaps and bounds, the absence of which pricks the balloon. Incremental growth should be the exception rather than the rule. Although strategies have great benefit, they also have the down side which are rarely highlighted. In as much as organic strategies increase the success rate, they could also have negative repercussions. We attempt to highlight some of these dangers in the ensuing section. Dangers to watch out for in strategy formulation and implementation a. Too frequent and undirected changes brings about disillusionment & kills momentum, enthusiasm. Once an organisations appears to be too frequently & rapidly changing its way of working, corporate image or line of business, then it runs the risk of losing the small gains it has garnered over the months and years. When these are summed up, they probably amount to nothing. But then, in this dynamic world and highly turbulent times, change is practically unavoidable or else one easily marches to the business grave yard. So much then for the business organisation. On an individual level, they walk through life as mere spectators and eventually leave the world empty handed. The fact is that the external environment is mutating at such a high velocity relative to the strategy formulation and implementation pace. It is there fore incumbent upon the strategy crafters to factor in the anticipated changes and challenges. In organisations where strategy is the order of the day, the real danger is to constantly watch the slightest movements in the environment and mutate too frequently. In the end, the organisation ends up spending more time watching others’ manoeuvres at the expense of charting the course. In other words, the organisation will turn into a reactor rather 416
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than a trend setter. In that situation, many projects are abandoned midway in preference for the latest strategic bullet. As a general rule, due care must be taken to ensure change does not take place just for the sake of it but it must be necessary. Neither should change be delayed to the point where the situation dictates (coercion) but rather, mutation must take place when the entity voluntarily elects to. b. Focusing too much on the short term rather than the long term goals If the strategies are predominantly short term, corrective and myopic, there will always be fire fighting and reactive manoeuvres to save face rather than proactive. As mentioned in an earlier point, frequent strategy changes result from too meticulous monitoring of other market players and repeatedly reactionary strategies to counter opponents. In the end, the organisation spends all its time merely reacting and myopic in outlook. The entity, as it were, spends time solving daily operational issues rather than casting the eye beyond the horizon. The short term mind set is both unstable and indecisive. c. Too much faith in particular strategies Strategies do not automatically mutate but environments do. You must have a “strategic fit” in keeping with the times. Don’t try to fit a square peg in a circular hole etc. Usually, people and entities put all their weight on the strategies hoping that things will automatically turn out right, with the least effort exerted, what could be further from the truth than this myth! It is one thing to strategise, but it is quite another to ensure the strategy works for us. In another words, the strategy is just but a means to an end not an end in itself. Besides, it is always prudent to have an alternative strategy by the side just in case one fails or the times change. d. Obsolesce of strategies Strategy potencies wither and die whilst in use and many times, the users do not even realise it! They carry on using the same old worn out strategies that carried the day years ago. When new suggestions or innovations are suggested, they are violently thrust out as inappropriate, unorthodox and simplistic when in reality, that could be the silver bullet. When Jack Welch took up the CEO position at General Electric in 1981, he found the legendary company too obese and suggested radical changes to make it more agile, lean and competitive. He faced a lot of opposition because the old guards and the outside world thought the company was intact, secure,
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admirable and in perfect shape. With time, as new ideas were reluctantly implemented and infused into the mammoth organisation, people began to see the past pitfalls and bought into his perceptive view. The well beaten out ancient paths are good and need to be preserved if useful but must be laid aside if they hinder further progress. Another dimension worth critically looking at is why many incumbent market leaders lose out and eventually fizzle out. Large multinationals such as the IBM and Compaq come to mind that have been on their knees for many years as a result of under cuttings by new industry and market entrants. Christensen £ has done fine research and asserts that some of these market leaders some time pay too much attention to their current corporate clients at the expense of critical Research and Development (R & D). They focus on the present good cash flows, refined systems and present product quality and look no further. In the mean time, the other new entrants are busy developing and innovating new products that eventually invade the main industry leading to a complete industry overhaul. By that token, the clients suddenly abandon their suppliers and switch to new technology and leave the incumbents stranded. From the foregoing, it is there fore important to ensure that the organisation does not only stick to the ancient paths but is constantly innovating on new products which are eventually commercialised, although this move has its own attendant problems. e. Multiple unrelated simultaneous strategies If too many strategies, and some times conflicting, simultaneously implemented, there is likely to be a problem in the long run. Unconfirmed reports suggest that at one time, the heavily donor funded Zambian economy had over 17 development strategies employed concurrently and simultaneously across the country in some cases. Perhaps that explains why the nation remains in rags after 43 years of self rule. Instead of having a rich experience net work to tap from and internalise, we have ended up confused, not knowing which strategy to employ. As some people say, “poverty is indeed a crime”. This is seen in the developing countries that have no option but to receive the top down economic programmes dictated by the donor community. Very few home grown strategies are ever adopted and that, not without a little sweat. That said, the top down strategies not only cripple initiative but also bring about an uncoordinated approach to progress. Some times, the said varying strategies are at daggers drawn leading to more suffering at the grass root many a time. Similarly, any entity or individual £
Clayton Christensen as quoted by Hill & Jones in their book “ Strategic Management theory” pp2
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that simultaneously entertains myriad varied plans, there is bound to be conflicting approaches leading to a dysfunctional overall corporate strategy. However, in the quest to capture as much market as possible, the entity is tempted to devise as many avenues leading to a serious conflict or even paralysis in extreme cases. The dividing line between benefits and effects is indeed thin but we hope our attempt has helped to tease out the salient points leading to greater strategy awareness and use. The Strategic effects can act as an attractive tonic to strategy formulation in one’s life, church, community and nation at large. This consideration also highlights some often neglected but key concepts as relates to time. The disruptive technologies and emotional intelligences are worth further exploration as they will bring about higher strategic returns. Our attention fittingly now turns to the challenges surrounding this golden word. The down side of strategy, though difficult, is attempted at. Read on, we are almost done! ====================================================== Bibliography Chikwanda Alexander, World Bank in Zambian, The Post, January 2, 2004 Mweetwa Cholwe, The short term mindset, The Post news paper, May 2005 Oakland S. John & Porter Les, Cases in Total quality Management, Butterworth Heinemann, 1994 Pride, Hughes and Kapoor, Business, 6th edition, Houghton Mifflin Company, Boston, new York, 1999 Siame Exhilda, America is not the beauty and splendour seen in movies: Travelogue, Sunday Times of Zambia, May 12, 2000 Stewart Peter, Development Theories, University of South Africa, 2005 Trump Donald, HOW TO GET RICH: The secrets of business success from the star of THE APPRENTICE, BBC books, 2004, London
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Chapter Fifteen
“To every privilege, a challenge lurks in the back ground” Anon
Strategy challenges As in all other anthropogenic undertakings, strategy does have its own peculiar challenges that demand attention. Unlike other activities that appear permanent, strategy is hardly static because it operates in a mobile dynamic environment. Secondly, strategy is a non tangible or physical commodity whose measurement is only possible by its effects. In this chapter, we attempt to synthesise the major challenges that confront this powerful word that has held promise for many an entity over the years. It must be borne in mind that the points highlighted below are but a mere scratch on the strategy galaxy and meant to provoke further thinking. To begin the ball rolling, we must state from the outset that challenges exist as highlighted above. We highlight some of them in the ensuing points: Too many plans-mere paper transactions and a multiplicity of them. In many companies and countries, especially the third world, strategies abound but die on the drawing board. Countless strategic planning meetings are convened at great cost only to die at the commencement of the implementation stage. Another strategy killer is the external interference from agents such as the donor community, family or spouses. In other cases, there appears to be a strategy avalanche focusing in different directions and in some instances at daggers drawn. Strategic leadership dearth. This is the desperate need of the times, especially in a country like Zambia where every political crusader appears to have an egocentric ulterior motive. In a sense, we all want to benefit in some way or other in what ever we undertake but some are too self centred and forget the primary purpose they are in a particular position. Thankfully, true leadership is not title, position or status but influence! More than that, the dire need of the times is strategic leadership that goes beyond just mere planning, coordinating, operations management or maintaining the status 420
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quo but ensures that the entity is kept buoyantly alive through the changing seasons of life. Strategic leadership is the one main need of the times that boosts the organisation or individual output to higher orbs where it becomes agile, multiple reinvented and empowered to be a profitable perpetual going concern. As the author has looked at the multitudes of Zambians, he has painfully observed that Zambians do more talking than acting. They would rather complain, condemn and gossip all day but rarely take a step to chart the course in the right direction. Some how, they expect that the neighbour will do the miraculous for them (communal good) and when some one uses their heads to generate wealth or get ahead, the lazy people are the first to complain or raise the flag in protest that some unfair dealing or competition has taken place. If they do not complain publicly, then they spread destructive rumours about that person linking them to Satanism and the rest. But the author thinks any person in Zambia is a potential winner, if only they more than just strategise but pragmatically go full throttle to hit the target, in the same breath thinking further ahead. It is true that a good portion of the Zambian tycoons have questionable CVs as to how they ascended to such heights but that does not stop you and I from using resources at our disposal to make the difference. I think, a person, to a larger extent, fails or succeeds in the mind long before they implement, of course subject to the providence of God. That said, we should refuse to settle for less until we have tried our level best. Furthermore, it seems the colonialised mind set still holds sway of many of us that were there at independence and shortly after wards. Many dread risk taking and would rather hide in the crowds and complain all day. We need a paradigm shift. Although I assert this point, I wonder how nations that were equally colonised like India and Botswana are making headway. There is a problem somewhere which strategic leadership alone can solve. External coercive pressure-Top down arrangement especially from donors. This is a general problem world over but uniquely felt more by the poorer countries. For instance, the IMF and World bank fostered economic programs have so far done more harm than good wrecking the poor country economies across the globe, though the said institutions (IMF, World bank) vehemently deny this∅. Perhaps the reason for this dismal performance is that the recommended economic recovery programs are not ideal and do not
∅
They claim that they only enter a country on invitation with the sole purpose to correct the ailing economy. Further, the institutions claim not to charge commercial/economic interest on all their loans in keeping with their “economic correction assistance” stance. Source:
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always fit into the different contexts∠. Perhaps what may be needed is the promotion of refined home grown strategies. Another school of thought thinks it could be a matter attitude of the donor aid receivers. If a mental paradigm shift could be activated, that would change the world! On an individual level, the same issues come to the fore and must be given appropriate attention as the case might be. Too many threats and risks. Among the elements to be considered in strategy crafting are the threats, risks or challenges. These usually hem in against a set objective and militate against any progress. The best strategists anticipate these threats and factor potent parameters into their strategy to adequately handle the threats. In some instances however, the risks involved overwhelm the would-be strategist. Examples would be the Iraq, North Korea and Iran stand offs where there is eminent danger from invading foreign allied forces. In a world where the “Big brother” nations dominate and bully anyone, its may be difficult to plan. Other threats would be extremist terrorist activities that detonate at any point of the globe. Rapidly dynamic World- frequent strategy obsolesces akin to the IT world. The pervasive information technology driven revolution are causing things to mutate at a faster than the strategy crafting pace. In other words, many strategies increasingly become obsolete before they are even implemented! The dynamic world does not wait for any one. To remain on top of things, entities must run with the times, access the right information and ensure they have a head start all the times. They must not only be socially intelligent, but must have what it takes in terms of skills, analysis, responsiveness and a rare intuitive anticipatory spirit. Divide and rule manoeuvres from within and without. This reminds us of the Bismarck’s policy that thrived on divide and rule tactics. In a sense, the various strategies amount to divide and rule gymnastics where the various market players are confused or generate disruptive tendencies that take time to handle by others. For instance, the Dell computers has sent many ripples in the industry that even the former incumbent giants like IBM or Compaq are still recovering from despite having had all the financial muscle. The politicians like employing this approach to win that extra vote from the poor
∠
Refer to the Evangelical Times, International edition December 06 edition. It attests to the wrong donor solutions. The nations in question should be given leverage to choose the type of aid.
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pauper citizens littered across the country. The strategic eye reads the times from afar and wisely position one self. Varying information sources and commands-Multi media such as radio, Political parties, chiefs etc. Before 1991, Zambia basically had only the state run media with the exception of one or two others. This meant that the state mouth piece reached every home and people turned out loyal but after the liberalisation winds of post 1991, there are many voices vying for attention. The implications are that the Zambian’s decisions are better informed as well as fragmenting the thought pattern of Zambia, as such, the thought pattern is no longer homogeneous. Today’s Zambian gets information from BBC, CNN, the Post, the Times of Zambia among many others. As such, the Zambian culture and value system is being eroded quickly and replaced by the easy going Holly wood western type of thinking. The problem with this development is that Zambians become less realistic and turn into a pleasure driven society. Their concept and perception of life is not based on reality but on what the movie industry dictates and teaches. People do not pause to consider that the developed countries have had a long history of sacrificial, sweaty progressive hard work whereas the poorer countries have hardly put the first development cornerstone. Today’s USA for instance, stands on a firm foundation of hard working Puritanical and Protestant work ethics that foster strong self application, hence the superior development levels. As such, they can afford to carry out all sorts of experiments and still have food on the table. Their fore fathers have laid the solid ground work that just needs incremental improvements. The Japanese are of course an exceptional case in terms of development rate, though one can argue that they have always had a determined mind set and have simply been effecting their thoughts. On a positive note though, the Zambians know what others have done and buy into the possibility of improving their lot, though defining development in Western world terms. Crippling debt burden. The debt has really been crippling to the entire nation as evidenced by the low living standards in Zambia where close to 80% live in abject poverty. On an individual level, many of these poor people are trapped in the poverty cycle and find it practically impossible to think outside the box. Sustainable development is mere theory at that stage since their basic needs have not yet been met. Despite reaching the HIPC completion point, and therefore freeing more resources for development,
As at 2002 there about
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Zambia is rapidly and senselessly plunging into the ravaging debt cycle with practically no clue on how to liquidate the unsustainable loans. It’s a shame. Half baked or information dearth. In this age, correct information and not finance alone makes the difference between success and failure. To garner the right timely information, an entity must ensure it has access to state of the art technology & information system, a well developed market intelligence network and a close customer relationship as well as an adequately funded forward looking research and development wing. Short of this results in losses all the way unless the world stands still. Resistance to change/rigidity. The one major challenge that a strategist faces is to make people appreciate what s/he sees. Half the time, many do not see the long term benefit but are preoccupied with protecting their turf as well as applying the survival instincts they can marshal. If self preservation is not the issue, then it is a question of people seeing the necessity and relevance of the new strategy. If it is imposed top down, the people reluctantly accept the strategy, scarcely run with it and abandon it at the earliest convenience. True to what has been observed by others, change is often resisted by all of us, especially if the change rocks our comfort zone. More than resistance, there is the issue of bureaucracy, red tape and rigidity that often bugs many entities, in many instances, unawares. We are generally comfortable in predictable and safe environments and will oppose any thing that is not in line with our aspirations. The author once worked for an organisation that was renowned for its frequent reorganization changes. This organisation was by and large a reactionary entity that did not really have one specific goal but multiple. One day, you had a job and the next you were on the streets. At one time, the author applied and got a higher job within the system. He happily and diligently started working but half way through that project life span, he found himself handling a job lower in rank than the previous one he previously had! When these changes were evolving, he recalls the hostile internal resistance he felt within, which ultimately showed in reduced output. As Zambians, we suffer from the comfort zone syndrome where we loathe facing any new challenges. Perhaps our constant economic suffering from birth accounts for this indifference. Tragically, Zambians build tolerance and resilience in the wrong things such as being abused, tricked, ripped off and poverty. Many people think for the moment rather than for tomorrow. The Sacrifice road 424
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“The sacrifice road is indeed a lonely path with few adherents but the popular prosperous and easy going high way has a myriad comrades” Many people in Zambia tend to place comfort above security, with little foresight into the future what a little more sacrifice can yield. Naturally, we all abhor suffering but in the Zambian context, the tolerance level is rather extreme. We are increasingly and predominantly a pleasure driven society as ably taught by the Marketer. The Apostle Paul caught something of his days’ general tenor of life when he stated, “Let us eat and drink for tomorrow we die”! The Corinthians lived for their day and ensured they maximized their pleasure centres. Granted, we ought to enjoy every single day that comes and passes by, but not at the expense of personal development. The early Protestants and Puritans knew better, me thinks! Here is another thought provoking tonic: Living for tomorrow Many people in Zambia are sadly content with their paltry monthly wage that is handed down from their master’s table. But if you are going to sustainably live well through out life, you must create and grow a business side by side with your professional career. This selfsame infant will look after you in your post employment life. It will be your walking stick as it were. Thankfully, a stream of entrepreneurial youths is rising over the horizon but one hopes that this will quickly turn into a flush flood as much time has hitherto been wasted. Thus, we conclude that strategy, although heralded by some of us as the silver bullet in many things does in fact have challenges that need to be ironed out right from the outset. Further, the strategy itself should be all encompassing providing for all eventualities, which eventualities by and large, remain hidden to the naked eye until unpredictable Murphy’s law suddenly appears on the scene. We have also noted that despite its challenges, strategy does also have far more benefits for which we must aspire unto. It now remains for us to wrap up this book by looking at the future prospects that lie in waiting for this grand subject of strategy, stay tuned! Bibliography Chikwanda Alexander, World Bank in Zambia, The Post, January 2, 2004
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Maxwell C. John, FAILING FORWARD: Turning mistakes into stepping stones for success, Magna Publishing Co. Ltd, 2003 Mweetwa Cholwe, The short term mindset, The Post newspaper, May 2005
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Chapter Sixteen
Looking ahead…
Strategy in future The turbulent and dynamic post modern times in which we live cast little light as to what will exactly happen in the future. One thing however is clear: the world will accelerate as the years unfold. The advent of a combination of factors such as globalisation∧, international workforce and the inundating pervasive Technology (e.g. IT) revolution dictate the need for proactive strategic thinking, planning and management. What may be the perfect plan today may not necessarily be so the next day. Things that once took many years to materialise or implement will take a far shorter time, hence the need for perceptive strategic thinking. For instance, before the clock was invented, events entirely depended on the suns’ angle in the sky relative to the horizon but today, the high paced life can scarcely wait for any one. What once was unimaginable yesterday is a reality and far much more. As the author peers into the future, he sees greater and radical changes in the way people will live, work, interact and think. New industries, inventions, customer tastes, aspirations, environmental issues and backlash (green revolution, all kinds of pollution, degradation, climatic changes etc) will radically differ from what obtains today. Only three to four decades ago, it was near impossible for one to aim to pursue a career as an astronaut, but ∧
Refer to write up on factors propelling globalization in appendix 2 Refer also to Bradford Delong’s article “Kenyesian cure” in the Post edition of 29/03/2008 where he lists drivers of glabalisation as Technology, Real estate (especially in the USA) and Production (in and outside the USA)
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today, space tourism is fast taking shape as another unique potential service industry. Consider the Technology explosion with its attendant off shoots. Who could have thought a cell phone would one day become as mundane as it is today? Back then, it belonged to the epic movies such as Star Trek, Space 1999 and the rest.
Internet Star ship encountering yet another planet in its epic voyages among the stars Digital technology is hardly surprising today, making yesterday’s state of the art technology look really archaic. Now, we are talking artificial intelligence where the computer literary learns from, imitates and masters the human mind and by that token takes over many functions. In the area of research, there is talk about genetically modified organisms (GMO), cloning, artificial insemination as well as other related genetic engineering antics. We scarcely have time to talk about the noiseless aerospace industry, interplanetary travel, space junk, astronomy, brain chips, telepathic communication, cordless networks, higher speed phones, globalisation, lunar colonisation, enhanced nuclear exploitation, inter galactic travel, under ground/ suspended cities, alternative energy sources (such as geothermal, bio-diesel, biomass, solar energy etc), extra terrestrial mining (e.g. Rigolith on the moon) and any other presently unseen factors. At one time, these were practically unheard of but not anymore. Most of the listed things appear remote and insignificant and in bud form today but in ensuing days, once fully blossomed, will impact greatly on the way humans do business.
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Internet Moon base (as depicted in the motion picture: Space 1999) It is therefore critical that strategy and tomorrow’s strategist adequately be armed with an avalanche of flexible options to handle the proliferated and nebulous volatile turbulent times of tomorrow. No doubt, speed and accuracy will be core killer instincts for tomorrow’s successful business person. Market intelligence, business sense coupled with a swift perceptive trained eye will be non-negotiable traits, far outstripping what obtains today. In that day, right strategy, mutual trust and strategic leadership will immensely assist. In terms of corporate business, the gigantic multinationals will probably give way to lean virtual entities, outsourcing, refined quality chains and franchising. The e-commerce, video conferencing advent entails that cheaper business transactions can be done online in the comfort of the home. Physical international travel, though critical, may be affected or changed to cater more for holidaymakers rather than formal business travel. Net works will undercut traditional working and interactive habits as the paperless office enables multi billion dollar empires operate at minimum cost, and hopefully translate benefits to the customer as opposed to what obtains now in many parts of the world. In addition, the strategist will have to consider the economic, political, religious and social changes on the international scene. For example, imagine the USA turning into a declined≠ ≠
From a personal private opinion, this author seriously suspects and postulates that the USA is a fast declining economic and military power because it has taken on far too much than it can handle. At present, it acts as the world’s police and provider resulting in its resources literary thinly spread all over the world making it too expensive, bureaucratic and complex to sustain for long. Ultimately, it will end up like an old tired harmless barking dog. How possible is it to appease every nation on earth? How can one nation feed the whole world? What about the civil spates instigated by the USA all over the world? Can the USA simultaneously wage two wars? Consider Iraq, North Korea, Russia, China, Iran or India among many that are near super powers today. Imagine if all these led by China, revolted at the same time, would the USA manage to cage them all? Further, look at disasters that have lately hit the USA: The Katrina disaster, the
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world power while China mutates into the foremost global economic and cultural giantΘ, expansion of underground/sea cities as well as the anti electromagnetic wave crusades. In business, the failure rate will rise while the success duration is likely to shorten depending on what industry one is in, the uncharted industry being the best bet. As such, the following are likely to happen: 1. The long term plan will have to be more involving in etching out since the rapid changes make the trend analysis difficult to determine with a long term certainty. As some one has aptly quipped, “A plan is nothing, planning is everything”. This entails that frequent and constant changes of the strategy not objective will be the order of the day. 2. The frequency of the emergent strategies will be higher compared to the present scenario. 3. The principles of strategic planning will by and large remain the same with some modifications due to the differing demands of the times. 4. Should the third world countries come to grips with the long term strategising, then emancipation will have gotten within grip, other wise the dependence syndrome will continue to dog the world. 5. Individuals will begin to employ strategy at a much younger age for them to remain buoyant. In other words, strategy will have an even wider application to include areas like studies, small “Tuntemba” businesses, as well as at the corporate level. 6. Although some allege that traditional strategic planning is obsolete, it is none the less the key to corporate and individual competitiveness. A few adjustments to make it more relevant will do the trick and then we should be back in business with a brand new potent start. 7. Time is an increasingly scarce commodity relative to the “click generation”Ξ. It will need to be more prudently harnessed and utilized so as to maximise yield per time period. Hitherto, people have not really valued time as a special rare commodity but the occasion is increasingly becoming ripe for its (time) thoughtful preservation and various cyclones, the September 11 bombing, and the continuous high security alert around the nation for over five years. An average American has more than two jobs and many live on credit for the good part of their lives. Granted, they have immediate gratification unlike the rest of us mortals but what if the economy continues to plummet or grow at a small pace of 4-5% GDP as has been the case for some time now? Θ Apart from GDP, a country’s prowess is measured by the amount of energy consumed. Presently (2006), China ranks the second to the USA. By 2009, China should be the leading internet user outstripping the USA’s 200 million (2006) Ξ “Click generation” See a short write up attempting to define this in appendix 2
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harvesting. Time is of essence in many affairs today and tomorrow, on which side are you? Epilogue…
Home run! Go Zambia, go!!
Yamika Banda in the UK, making head lines…
====================================================== Bibliography A not so rainy day, The Economist, March 11th -17 2000 Awounda Moussa, Saving Lake Victoria, New African, October 1999 Beer De Frik & Swanepoel Hennis, Introduction to Development studies, oxford University Press, Southern Africa 2nd edition, 2000
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Bellingham Richard, Virtual teams, Jaico publishing house, Mumbai, Delhi, Bangalore, Kolkata, Hyderabad, Chennai, Ahmedabad, 2003 Bower, Bartlett, Uyerterhoeven, and Walter, Business Policy: Managing Strategic Processes, 8th Edition, Richard D. Irwin Brake Terence. Managing globally, Dorling Kindersley, Lond, Munich, Paris, 2002 Cateora R. Philip, International Marketing, 9th edition, 1996, Irwin McGrawHill, Boston, Massachusetts, Burr Ridge, Illinois, Dubuque, Iowa, Madison, Wisconsin New York, New York San Francisco, California St. Louis, Missouri
Chitembo Zondi, Remote sensing, The Technologist, September 2005, pp6 Cohen R Allen, the Portable MBA in Management, 1996 Corbitt Terry, Virtual realities, CIMA insider, December 2000 pp24 Flippo B. Edwin, Personnel Management, McGraw-Hill, 6th edition, 1984, New York, St Louis, San Francisico, Aukland, Bagota, Hamburg, London, Madrid, Mexico, Montreal, New Delhi, Panam, Paris, Sao Paulo, Singapore, Sydney, Tokyo, Toronto Gonzalez Guillermo & Richards W. Jay, The Priviledged Planet, Regnery Publishing, Washington DC, 2004 Harris Paul, Outsourcing, Management Accounting, March 1995, pp30 Kasase Chitundu, perspectives on Research & Development in Zambia, The Technologist magazine, September 2005, Volume 1 # 3 pp5 Kevin T. Pickering & Lewis A Owen, An introduction to global environmental issues, 1994, Butler & Tanner, London 432
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Martin A Carolyn & Pulgan Bruce, Managing the generation mix: from Collision to collaboration, Jaico publishing house, 2003 Oakland S. John, TQM: Text with cases, Butterworth-Heinemann; 3 edition (June 2003) Paperless office poses problems for business, management Accounting, March 1995, pp12 Rodney A. Brooks, Flesh and Machines: How Robots will change us, Pantheon Books, New York, 2002 Sawyer Jacqueline, Tropical Forests, WWF, 1992, 2nd edition pp 28 Science explorer, Earth science: Interdisciplinary explorations, Prentice Hall, Needham, Massachusetts upper saddle river, New Jersey, Glenview, Illinois Schaffer A. Francis, Pollution and Death of Man: The Christian view of Ecology, Tyndale House Publishers, Wheaton, Illinois, 1970 Sheenan William, Worlds in the sky:Planetary discovery from earliest times through Voyager & Magellan, University of Arizona Press, 1992 Smith Malcom, Bottleneck management, Management Accounting, march 1995, pp26 South African wireless communication, super chip could mean faster phones, volume 11 # 1, may/June 2006 issue Symes, F.R, Rocks & Minerals: Discover the story of the earth’s rocks & Minerals-their creation, variety, and uses in everyday life. Dorling Kinderley, 1998, London, New York, Auckland, Delhi, Johannesburg, Munich, Paris & Sydney The fans of Mars, The Economist, March 11th – 17th 2000 The long farewell to oil, Duetschland, April/May 2006 issue, pp 10 www.magazine-deutschlande.de 433
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Welcome aboard the flying saucer, SEARCH magazine, London Press service, January/February 1992, pp4 WWF, IUCN, UNEP, A strategy for sustainable living: a summary text, October 1991, Gland, Switzerland.
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Appendices
Appendix 1 Case studies 1. The Mongu hotels Vs mushrooming guest houses (the case of the cross roads inns)
The Mongu hospitality industry race It came with a bang on the Mongu business scenario around 2002 quickly supplanting the already existing established hospitality business houses. At first, everyone considered the Cross Roads guest house as a mere joke by some dreamer that would soon fizzle out but they were wrong. Starting out with a small out let at the cross junction as one enters Mongu town. It was clearly an underdog from the start because the owners were viewed as amateurs with little known clout and business eye for that line of business. What made it worse for the start up entity was that it was not very well positioned because of its close proximity to a police compound, a noisy bus stop, a community hall, a noisy bar and some crafts men nearby. The place had very little parking space which effectively would discourage some traveler. Given these and other disadvantages, it was evident that the Cross Roads was destined to die in a short space of time, but again, critics were wrong for some of these turned out to be positives rather than negatives. The entrepreneurs behind this business worked away quietly behind the scenes building their business, establishing linkages and aggressively marketing the entity in various ways that included posters, door to door visits, brochures and offering facilities that other established entities did not have. Most of all, the owners ensured that the lodge rooms and services were of world class quality. For instance, the rooms were spacious, airy, well furnished, clean fresh linen, privacy guaranteed, security, self contained rooms and above all state of the art satellite TV service in each room that was rare in those early days. Another aspect they invested in that made them stand out was that of later establishing a powerful conference room which they had lacked for a while. With those aspects in place, there was no looking back as people begun to trickle in one after the other with increasing frequency and delight. For another thing, Mr. & Mrs. Kalonge2 were all the time on site and ensured that they treated their customers with utmost courtesy. They ensured that customers were given a good treat, well served and paid cash rather than credit. An exceptionally disciplined staff was engaged who devoted themselves to the business though the staff turnover was rather high in the early lean years.
2
Not real name. Actual with held for security reasons.
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By 2005, the Cross Roads boasted of two other lodges that had been built up from scratch with the same brand name, though now located in superior and porsh places befitting people’s status. Cross Roads 1 was the start up giving birth to Cross Roads 2 &3 which eventually gave birth to Cross Road 4, the best of them all, targeted only for the chief executives. It was the natural choice for senior brass of society and one needed cash in their pockets to patronize that place. The interesting thing is that whilst other formerly well established hotels and guest houses were struggling to offer even the basic necessities like warm bathing water or a decent meal, the Cross Roads grew from strength to strength! Having established the brand name strongly in Mongu, practically the corner of Zambia, it was time to expand to the major cities of Zambia. That would be a hard shot and risked serious failure and waste of resources but the Kalonge’s were determined to make their mark. In 2006, they ventured into the heart of Lusaka, bought a plot in Olympia/Roma area, built from scratch and personally supervised the work. Mr. Kalonge, being meticulous and particular about detail literally camped on site and ensured things were on track while his wife managed their properties in Mongu. She occasionally visited the project site to check on the progress and quickly headed back. Thus went the progress such that by the end of 2006, the place was basically ready for official opening to the public. This latter stately Cross Roads structure was even more sophisticated, beautiful, spacious, high standard and about everything was exotic, imported from the far flung places of the world. The atmosphere was homely, fresh, calming and very inviting to any visitor. As is the practice of many organizations, they rushed to try out this new “joint” by having endless workshops, lodging there as well as hanging out with colleagues. The Cross Roads is now a house hold name in Lusaka, with its unique, high quality service offerings, far outstripping the earlier rivals back in Mongu. One would ask, what has made this once little known Cross Roads brand such a house hold name in such a short time? A number of reasons can be summoned attempting to explain this but the following clearly radiate as one interviews the proprietor or tracks the business development. Firstly, Mr. & Mrs. Kalonge are serious entrepreneurs who know what they want in life, to make abit more money! At every turn, they look for opportunities to make an extra buck. Secondly, the entrepreneurs are focused and serious with what they do. They are of one mind and deal in cash only, no credit is allowed and ensures everyone pays up on time. Thus, their cash flow has been sound most of the time. Thirdly, the Cross Roads are a high quality class chain of guest houses offering nearly everything a traveler would look for, comfort, courtesy, space, good speedy service and security. Others fall far short on that score. Fourthly, the management are very innovative, reading the times and able to respond to the seasons. Bureaucracy is yet to be the Cross Roads’ lot . Many old incumbents suffer from red tape, bureaucracy or rigidity. Other smaller entities suffer from the founders’ syndrome effects and cannot possibly innovate unless the owner sanctions that move.
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Fifthly, the Cross Roads chain has a clear strategy, goal and direction, to be the best of the best! Others are buried in personal scuffles, in fighting or witch hunting merely reacting to what is around the environment to the extent that they do not have the muscle to chart the course. Sixthly, The Cross Roads have a class, standard and high quality services which others do not have. The Cross Road owners will not settle for mediocre standards or anything less than the best. Rising from obscurity around 2000, the Cross Roads brand competes favorably with any international service provider currently in the country. Gone are the days when the best was only synonymous with the multinationals! Lastly, the Cross Roads has been consistent in its development, expansion and evolution. Its networks are good and has high good will from the banks, customers and others who not only offer it credit facilities but market it to the rest of the world. Indeed, you get quality for money at any Cross Roads lodge. Where the lodge chain goes from here is hard to tell but one thing is sure, the sky is the limit! © Billy C Sichone 2008
2. The dawn of the Shoprite era in Mongu (withering effects on the local businesses: the case of the Shantumbu holdings)
Shantumbu Holdings versus the Shoprite Checkers For many years, the shantumbu holding had reigned over the Mongu scene unrivaled. Rising from an obscure insignificant chain of shops in the early nineteen seventies, the business empire rose from strength to strength. Mr. Kabonda3, the proprietor proved himself a very shrewd and seasoned business man who ensured that his businesses were far above what obtained in Mongu. As his business prospered, he diversified into other business ventures unrivalled because his fellow tribes’ men did not possess the right business acumen. In addition, the command economy espoused by the state discouraged business and subtly encouraged dependence on the state. Many people devoted themselves to public service from which they derived their livelihood while looking down on free range entrepreneurs. However, Kabonda had a different spirit and strongly believed in destiny self determination. He thus weathered the storm, criticism and threats from all quarters and forged ahead. Fortunately, he was well connected to the powers that be of the day and eventually managed to worm his way to the UK to study business management. While he was abroad, his wife and children successfully ran his businesses though merely scrapping through. He noted a training gap for his posterity if they were to continue expanding his legacy. At his return after a two year master’s degree study, he came with bright business expansion ideas which further distinguished his business from the rest. His former business rivals from the Mbunda clan were no match for him as he espoused modern management practices, high quality output, customer focus, competitive strategies in relation to pricing, promotion, placing, and products. He further 3
Note real name. Actual names withheld for security reasons except the Shoprite Checkers
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hired more staff while sending his heirs to work in the corporate world and later sending them abroad to study. They were thus detached from the business for many years. That notwithstanding, the Shantumbu enterprise blossomed in the 1980s and into the early nineties. Those were high points. As the years rolled on, Mr. Kabonda snr became too comfortable, influential, powerful, married many women and was generally a philanthropic man. By 1994, the man was growing old and started recalling his well established children to return home to run his businesses while he gave expert advices from behind the scenes. Naturally, the children, particularly the sons had moved on, established families and were thus reluctant to return to the relatively rural Mongu. One son (Monko) however agreed to quit his full time job and returned to take over the running of the business while others supported from the terraces, as far away as the UK and USA. No sooner had Monko taken over the reins than the old man died. That was a serious blow to the business but thankfully, the old man had left a lot of money in reserve which could allow the young mind to explore new business plans as well as expand the extant business. He straight away got busy reshaping the business amidst family tussles over property disputes. He weathered the wind out of the quagmires and slowly expanded the empire to its peak levels around 1997. The business was pretty comfortable with a positive book balance, high asset base, good flawless liquidity, highly diversified, a work force of 40, well connected to the powers that be, enjoyed preferential treatment in contract bids and above all ran the best and only supermarket in the whole province. No other competitor could match the business quality, availability of goods and timely service. In a sense, all other smaller traders shriveled into insignificance leaving the Shantumbu holding a monopoly in the district. As a result, the enterprise staff became proud, obstinate, boastful and cared less for customers having enjoyed government support. The organization ceased to learn and became unresponsive although it still raked in super profits at the end of the day. But things were about to change. The 1992 privatization act and liberalized economic policies had begun to make inroads into the country allowing the multinationals to have free reign into the country spreading their tentacles as they pleased. Thus, in early 1998, the Shoprite Checkers chain store announced its intention to open up an outlet in Mongu. At first, people were excited because this advent would mean the district would now be regarded as a developed place and thus attract further investment. Consumers interviewed in the marketing survey indicated a longing to have the shop set up camp as soon as possible. As the shop was setting up camp, something shocking happened. The first shock was that the shoprite received a lot of resistance from the local business community, especially the retail traders. The second shock is that the company was denied access to land or shop premises in the main business trading centre but were instead directed to some old dilapidated, abandoned, filthy structures far out of town near the grave yard! The premises had formerly been a ware house for the state owned NIEC stores but had been idle for over a decade. The third shock was the attempted arson by unknown people buttressed by warning letters from anonymous local individuals, probably business people. On four occasions, the shop stock was saved from destruction just in the nick of time but eventually, with intensified security, the place was secured and finally opened its doors in mid 1998. As is the manner of curious shoppers, the place was jammed with
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buyers on the first few days but business sharply declined thereafter. The chain store had to craft another strategy to overcome this. Despite being a one stop shop, it did not attract as many consumers as was anticipated and struggled along for a while. The shop carried out a market research and concluded that a number of things needed to be done to remain afloat. Among the recommendations, the following were the action points: 1. The shop was to maximize in stocking relevant product ranges such as mealie meal, bread, soap etc 2. Closely connected to the above, the entity was to ensure that as much as possible was available in one shop at a reasonable price. 3. The shop was to ensure the pricing was good, fair and reasonable to attract demand. 4. The shop was to maintain a high quality and clean environment. In addition, the shop was to be careful with its product quality such as expiry dates, regular checks and proper storage. 5. The shop was to run frequent promotions that would attract people to come over. 6. A free bus ride was to be offered to shoppers for a period of time so that the distance factor would be narrowed. 7. The customer was to be king and highly valued. Thus, the customer would be held in high regard and always considered right all the time. 8. Repeated training of staff was necessary to inculcate the universal organizational culture. These and many other innovations were diligently effected and slowly begun to pay dividends. On the other end of town, the Shantumbu still felt safe, secure and in charge of the business. The arrival of the Shoperite checkers raised a bit of concern to Monko and team but they were very optimistic that the empire would weather the storm and once the “Shopy shopy” craze was over, his loyal clients would return to his super market. If that did not happen, his large real estate investments would cushion the impact and thus allow his empire to continue unabated. Besides, his brothers and sisters abroad would come in to the rescue if need be. Surprisingly, the “Shopy” craze went on for far too long, his supermarket had fewer patronages, less demand and therefore less income. His clients begun to ask things they never generally unwilling to wait for him to deliver ordered goods from Lusaka and beyond. Others just simply snubbed him or drove past his shop and never set foot there again. Consequently, he begun to record losses, his damages increased and staff pilferage went up. Because of poor pay or delayed remuneration,
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some of his best staff quit to join the shoprite checkers. Things looked bad but as usual, the empire was in denial. Looking across the fence to other entrepreneurs, they were equally complaining and withering fast. The die was cast; it was time to change strategy. To mitigate further loss, Shantumbu enterprises did the following: 1. The supermarket diversified further to include a bar in one section. 2. Real estates were improved upon to increase value so as to attract the NGOs and wealthy individuals. 3. Monko was to explore the lucrative timber business at Senanga and beyond. 4. For a season, prices were to be slashed in a bid to win back the local customers although the price slash was not for long lest the company went under. 5. The bakery which had been closed was to be revived but let out to some other entrepreneur. The shoprite bread was not very good at the time as it tasted abit odd, rather too salty and thus that was an opportunity. 6. The customer was to be treated better than before. 7. Mobilize more capital from kinsfolk abroad. The Shantumbu enterprise immediately effected these strategies with some periodic modest success but it appears the plans came too late to win back the product loyalty. By 2001, the Shantumbu Empire had had most of its market share eroded and was a generally deserted place. The little that was raised could scarcely meet operational costs while the real estate business had declined as the number of superior housing units came up from about 1992. With time, the shop closed down, most of the real estate sold and workers laid off. That was the end of the empire. But the shoprite checkers lives on today, growing from strength to strength. Will another appear to dislodge this giant? Let us wait and see.
Questions 1. What do you think caused the Shantumbu Empire to decline? 2. What were the success factors for the Shoprite checkers in Mongu? 3. What are some of the dangers any business should watch out for in a market economy? © Billy C Sichone 2008
3. The Hostels’ board Zambia
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Interview with Mr Dabson Mwendafilumba, MA This interview was carried out by Billy Sichone with Mr Dabson Mwendafilumba, CEO of the Hostels Board Zambia, a chain of lodges dotted around Zambia. The objective of the interview was to discover how and why the lodges were doing well under the Leadership of Mr Mwendafilumba, given a very dark background when the lodges once were not as good as they have suddenly become in recent years. Thus, this interview centres on strategic thinking, management, planning as well as quality issues.
Interview date: October 2001 & July 2004 Venue: Mongu Lodge & Nyati Close, Rhodes Park, Lusaka 1. What, in your own word, is management? Ans: In my own words, I would define Management as the process of managing resources ensuring that there is no management crisis. In other words, I could say ensuring that all resources under your case are properly harnessed and used to their intended end. 2. What various styles of management do you know? Ans: I know several but I will give some that immediately come to mind. I must state first of all that management styles depending on the context as well as the team/hierarchical structure is framed. Now as for the styles, I know the following: a) Coaching management b) Autocratic management c) Laissez faire and lastly d) Team building management. I must also state that in Africa, management is quite different from that which you find elsewhere. It is a power distant type of management so that there is fear instilled instead of friendship in relations between supervisors and subordinates. As I have mentioned, this differs from the Western world where people are addressed by their first names, showing that they are colleagues and comrades. 3. Which one do you espouse or prefer? Ans: Management is based on team building these days and to succeed, we need to depend on each other. Therefore, I prefer and practice this type of management. 4. Does team work or spirit exist or work in Zambia? Ans: It has worked in the lodges that I am Director of. All our managers meet quarterly to
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discuss and create friendship by working together. When we meet, we have fun together and ensure we create a conducive environment where we are all at liberty. Every meeting, we begin in prayer which has helped unite us. In order to spice or enrich our meetings, we visit tourist attractions, engage in recreational team building activities like swimming which in effect create dependability on one another. After refreshing, we meet once again to brain storm and focus on one thing, ensuring there is a shared vision in common as well as buy in. As the leader, I ensure they all see the ‘Star of Bethlehem’ akin to what the Magi of old did. 5. How is the management today different from that of long ago? (What are the trends in management circles you have observed?) Ans: Traditional Management wasted time on fighting each other and standards as such would start to decline. This cannot be tolerated now due to increase in marketing and competition. Furthermore, in a traditional management setting, new ideas are not encouraged or let to blossom but in the current context, you must continuously be coming up with new ideas which will be generated by different people contributing from within the team. As for the trends, Management in Zambia is changing at a slow pace as top management still tend to hide information from subordinates that would enlighten and build them up. Information is still the private preserve of the few thus curtailing anyone one from effectively contributing. Furthermore, in Zambia, the power distance between supervisor and supervised is still large although some modifications exist in pockets here and there but by and large, things are still pretty much the same. In addition, management does not come with one mind but different individuals are busy pursuing their own things at the expense of organizational development indicating very little buy in and no shared vision. That’s the picture in Zambia as I see it. But the good news is that we are changing the picture in the Lodges and I am sure we are far ahead of the others although admittedly we have our own challenges along the way. 6. How has been the transition from Traditional to modern management? Ans: It hasn’t been easy admittedly but there have been pockets of resistance here and there as people dread to leave the comfort zone. If we are to be successful, there must be willingness to change, though change is not an easy undertaking. 7. How long have you been in management? Ans: Well! I have been around quite a bit! Specifically, I have been in management circles since 1989. I have risen through the ranks and was executive officer but I am now the Executive Secretary or Chief Executive Officer (CEO) of the Hostels Board in Zambia. 8. What about in the Hotel industry how long have you worked there? Ans: Like I mentioned, I have been in the hotel industry as far back as 1989 where I have
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most of my professional life. 9. How do you manage as a professional running a Government owned (Quasi Government) business? I am sure there is a lot of political interference. I would be interested to know how you play the balancing act. Ans: It is a very delicate exercise I must admit because every move, decision or act that you do is meticulously watched but I am pleased to let you know that we do not run like bureaucratic Government. In as much as we have some bureaucracy but Government has graciously allowed the Lodges to somewhat operate independently by and large. This has enabled the lodges to make significant headway because this is viewed as a strategic institution to the Government as well. A balance must be struck in relying on the Government and at the same time implementing modern management principles. As for the balancing act that you mention, so far we have no problem emanating from political interference, in fact, the Government has been very supportive, desiring that the lodges improve and become self sustaining. We have challenges in running the lodges one of them being the delayed payments which makes it difficult for us to raise the lodge standards where they can effectively compete with others in the same industry. However we have put some strategies in place to ensure we get where we want to go. 10. How much interference from Government is there and how do you handle it? Ans: An amount of interference is there but not so much and can be handled with some tact and wisdom by all of us. It is all about knowing who is who and what is at stake as well as how to respond. Strategic thinking is key. 11. Talking about survival of Hotel industry, just how do you survive, being a parastatal? Ans: We have taken a number of steps to ensure we remain competitive. Here are some of them. The first is that we have embarked on rehabilitating all our lodges around the country, I am sure you have seen the Belvedere and Long acres lodges, these are master pieces. For lack of resources, we are doing this piecemeal and in stages as we generate resources as well as funding from Government. Since we are 100% Government owned, originally all the money generated used to go into Government Treasury. This brought its own dimensions and challenges. However, now the lodges have their own account which they use for operations and reinvestment. This is a very positive step in the right direction. The second is to plan at National level but ‘Think local’. We take all the variables into consideration such as place, target market and so on then set our pricing. Our aim is to improve our service quality to world standards, if possible.
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Therefore, in response to the survive question in the hotel industry, we must note that few lodges in our chain actually make losses at the moment (2004).In the event of a loss, other profit making entities offset that loss. Further, because of the Team work culture we have cultivated, it is paying dividends for us. In fact, we are actually making profits. 12. Hmmmm… this sounds good I am tempted to ask what place marketing takes in your organization since it is quasi Government. Ans: Marketing is important in this economic set up we find ourselves in. We have been aggressive and use personalized marketing to satisfy our customers. For instance, we know our clients’ birthdays, send cards when it comes around periodically call them and keep the lines “warm”. In addition, our staff ensure they master people’s names that have lodged with us before and that has a bonding effect and fosters loyalty. 13. How much of the market have you captured? Ans: We can safely say that many people prefer lodges to hotels because they are far more ‘homely’ and for the moment, the lodges in Zambia collectively place it at about 65-70% of the lodge market while others hold the rest. We are correctly positioned for the moment and one hopes we can improve on that record. To capture market, many use different strategies but we focus more on quality because it is the best competitive weapon rather than price. Treat customers well, provide for them and I am sure they will come round again! 14. I note you use the word “Strategy” quite often, what is strategy to you and what does it mean? Ans: Strategy is the means of achieving your goals and objectives. 15. How do you apply it in your management skills? Ans: Strategy cannot be applied once and then you forget about it. You must keep in mind what the competitor’s strategy is. Know how and when they are to apply their strategy and ensure you craft a better strategy that will outwit them. In other words, strategy should be kept fresh and organic so that it can remain relevant and effective as we know that competition is constantly rising. One such strategy that we have utilised in quality ensuring that everything that we do is as perfect as possible to more than please the customer.
16. Before I ask about TQM let me ask how your organization has used this weapon to survive the tough economic times in competition to other new industry entrants and other industry incumbents. Ans: We have used it very effectively especially that we are a government entity. Our
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strategy is that they give a lifespan of assets by having a plan as well as lobbying for items we require in advance. In that way, we have beaten the bureaucracy and emerged victors in a ferociously competitive industry. TQM! That concept entails having high quality throughout the organisation and tends to have a lot of advantages for the organisation that practices that. In the hospitality industry, one cannot evade quality because we just have to be the best at all times. At our lodges, we emphasize that every employee must put quality first in whatever they do because if we serve our customers well, then our business improves too. They will go out there and tell many others to come and lodge with us. We may not be TQM certified but we strive to be the best of the best among the lodges. 17. What is your strategy for survival? Ans: Our survival plan is to always read the times and proactively respond before others do. 18. How do you motivate your staff? Ans: It has not been easy at the lodges because the personal incomes are low but then, monitory gain is not the only motivator. To beat this, we make sure we recognise staff that are outstanding in their work as well as ensure that all members feel part and parcel of the organisational success. 19. I note you read a lot and have a lot of management concepts up your sleeve, can you recommend just one book for one to read so that they become as astute as you are? Ans: I would definitely give you many titles but I highly recommend one...have you heard of or read a book called “The Seven Habits of Highly effective people” by Stephen Covey? Oh it is a marvellous book and deals with about everything any manager would like to know. It has impacted and changed my life a lot. 20. Does that explain the secret of your success.....? Ans: It certainly has contributed! Covey brings out very important concepts such as having the end in mind as well as being proactive which concepts I have sought to integrate in my management. Every day before I start work, I sit still in my office chair and just relax while I think through issues. When I arise, I will have sorted out a lot of things. So, for sure, Covey has been a mentor and coach to me. 21. Finally, what have you studied and where? And what is the way forward for the lodges? Ans: I have studied some hotel management at NIPA as well as other studies in house. Lord willing, I hope to pursue further studies in future in the same discipline. As for the
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way forward, we would like to be the best, far mush better than we were yesterday. People always want to see innovators and as such, innovation is very vital for success. Secondly, we want to embrace change and be never content for the dynamic times in which live will not permit us to sit still. We must constantly be improving. This is the silver bullet to success. Thirdly, we want to embrace technology as fighting competitors is more than just having cash but mental. We need to be thinking all the time as we exploit cutting edge technology in the industry. Lastly, we want our customers to be able to book without being physically present. In other words, technology will help us as we install online book services. In that way, we shall get ahead of the pack and be a resounding success. Thank you so much Mr Mwendafilumba for according me this special interview realising that you are a very busy executive. You are very welcome and I wish you well! Watch us in the press as we make inroads!!!
Case study questions What do you think about the Hostels Board strategy? Comment on Mr Dabson Mwendafilumba’s leadership and business acumen. “A strategy is organic and not static” Discuss. What one trait distinguishes the lodge chain across the country? Do you think top management attitude towards impacts on quality effectiveness? If Mr Mwendafilumba left the lodges, would they continue to succeed and improve? Give reasons for your answer referring to the case study.
(c) Billy C Sichone ZCCM 4. ZCCM Data: Source: Kazumba Arthur Msimuko. 1996 BBA Thesis Copperbelt University School of Business Profile Formation date: 1981 Purpose: Consolidate all the copper mining activities in the Country. Constituent elements: Roan consolidated mines and Nchanga Consolidated Copper Mines ltd. Core business: Copper mining, refining, sales. Dissolution date: 1996/97 Reason: Privatization due to losses e.g. 1994/1995 posted a ____________ loss. Historical performance.
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Year/FY 1981/82 1982/83 1983/84 1984/85 1985/86 Stagnation 1986/87 – 1991/92 1992/93 1993/94 1994/95
Production (tones) 591,853 575,518 551,021 525,811 463,354 370,000 pa 386, 762 432, 206 392, 179 350, 476
CEOs: Francis Kaunda, Shamutete FY 1994/95
Number of employees 45 024
% reduction 1981 – 1995 period = 26% Reason: Top heavy, bureaucracy, too high quality products thus costly, inefficiency, too many non-core businesses, diversification, monopoly, overtrading (too much: extraction, processing, market distribution e.t.c); Price fall for ore e.g. 1993/95 fell to 72% per pound, kwacha instability/devaluation e.g. March 1993 US$1 = K551 to US$1 = K344 by September thus reducing revenues by US$ 90 for the year. 1986 – 87 FY Bought spares/materials away from SA “The performance of ZCCM since its formation in 1981 as measured against its level of production has been poor as the decline in the copper production shows” pp 4, 5 “This study does not attempt to establish empirically what these factors are. However, some of the factors which may have contributed to this decline will be identified.” pp 5. Thesis title: “Corporate planning in Zambia, the case of the ZCCM” Kazumba Arthur Msimuko. School of Business C.B.U September 1996
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Appendix 2 Direct Foreign Investment, its pros and cons Many of us wonder what Foreign Direct Investment (FDI or DFI for short) is. What is it, where is it found and how does it affect all of us? For many a Zambian, FDI sounds a totally distant concept far out there with no direct bearing over our lives at all. Thus, many ignore it but suddenly wake up in a mad frenzy when it touches their pockets and then return to sleep shortly afterwards. In recent days however, especially after controversial privatization process and sudden discovery of China, many of us are quickly coming out of our wood works trying to get to grips with things so that the new dealers’ government should not out wit us once again after “swindling” the nation of the mineral royalties, senseless tax holidays and the apparently clandestine sale of the ever vibrant ZANACO in the name of “investment”. Indeed, the 1992 Zambian privatization act # 21 triggered a spiral that we shall live to grapple with for many generations hence. The ZPA website (www.zpa.zm) offers deeper insight into this animal called “Privatisation” and to some extent, DFI. Perhaps, it would be fitting to commence by defining what basically “Investment” is before we consider it from an international perspective for to assume that we are on the same page in terms of understanding constitutes a serious error. Investment is defined variously among scholars but in capsule form, it can be loosely defined as “a deliberate delay in consumption of resources to a future date so that the resources ferment, thus paying back higher returns”. This definition presupposes certain things such as the availability of resources, a willingness to sacrifice immediate selfgratification/ consumption, a risk factor as well as a profit motive that accrues at a future stage. Winfield and Curry have defined it as when “either individually, as a company or as a country, we forgo the consumption of goods today in order to achieve greater consumption”. They go further to state that time and risk are of essence in investment. A more thorough and scholarly definition by Reilly and Brown reads “ An investment is the current commitment of dollars for a period of time to derive future payments that will compensate the investor for (1) the time the funds are committed, (2) the expected rate of inflation, and (3) the uncertainty of the future payments. The investor can be an individual, a government, a pension fund, or a corporation.” Clearly, we can safely deduce that investment is a day to 448
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day activity that we engage in though at different degrees and expectations. The principle is a higher future return on present investment. But as it relates to business, as the quoted definitions have shown, it is usually a financial commitment with a calculated risk to foster a better future outcome. Thus, if you deposit money in a fixed deposit account for a period of time, or buy treasury bills and bonds or indeed you invest some financial capital (although other resources like fixed assets are allowable) in a ‘ka ntemba’ you are an investor because you fore go an immediate gratification. The essence of investment is profit, a better future, higher dividends, power, influence or status. The motives vary from entity to entity. Thus, when a person comes to town, takes over a business, puts in a capital injection to kick start or revamp an ailing business concern, property or improve the environment, they are investors. If a Tonga man from the Southern province acquires and develops a farm in the Northern Province, s/he is a “local investor”, local in the sense that s/he is a Zambian investing within Zambia. If a Chinese traverses the terrestrial ball to start or buy a mine, in Zambia, that is a different ball game as we shall see later on in this write up. When we consider foreign direct investment, our focus shifts slightly to the international plane where we talk about multi national investments from individuals or concerns that would like to reap from or change the face of a particular place, people or landscape by pumping in resources (usually finance) from abroad. This is direct foreign investment in the simplest terms. In other words, we can say that direct foreign investment refers to the direct infusion of resources from one country to another by an entity or concern usually with a profit motive. Roger Bennet does not specifically define it in capsule form but does a good job highlighting that DFI has been around for over 150 years but interest grew when the large US multinationals begun to cross the Atlantic into western Europe after 1946. Charles Hill on the other hand defines it in passing in his book “International Business” when he states “FDI occurs when a firm invests directly in facilities to produce and/or market a product in a foreign country”. Hills’ brisk definition broadens the investment scope beyond just the financial aspects that most of us are accustomed to but includes investing in (1) a foreign country (2) in facilities (3) direct investment and (4) production/service with a profit motive. Thus, when the crippled Zambian economy finally ground to a halt as far back as 1985, the only recommended option was change the laws that paved way for DFI as well as privatisation. As we all know, this did not actually take place until the turn of the next decade when the Dr Chiluba led team bravely and radically turned the tide by unblocking all the valves that had hitherto kept 449
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away investors. The floodgates attracted many characters of all sorts of shapes and sizes who poured into our richly endowed nation that virtually did not have intrinsic capacity to exploit the vast resources at the time to thereby changing our fortunes. In principle we can say that it was a brave day when the MMD government led the way to changing the law from a socialist to capitalist leaning economy. With all their faults, the initial MMD team is to be commended and only posterity will condemn or acquit them. Having briefly defined terms, we venture to ask why FDI should be espoused and whether it has any tangible benefits. The first question is simpler in that from the scenario earlier painted about the stagnant Zambian economy of the second republic, it became evident that the only remedy was a direct infusion of resources from other potent partners given that the majority of Zambians are serious paupers despite having some of the best qualified people in the world at the time. The Nation had a great natural resource base, a whole load of unprofitable companies and a crippling unsustainable debt burden. As though that were not bad enough, the command economy inhibited realistic economic indicators that would have rendered many businesses unprofitable given adverse practices such as price controls, government interference, prohibitive laws and a failed or weak entrepreneurial spirit among the nations’ citizens. The Zambianisation policy, although well meant, led to bloated corporations, bloated bureaucratic public service, subsidies, and low quality out put. The preference given to nationals over foreigners as well as the protectionist policies virtually killed all form of competition from abroad. The twenty or so years of such a regime robbed many Zambians of a sharp competitive, entrepreneurial spirit that resulted in a dependence syndrome on the state as well as a failure to promptly adjust when the protectionist economic dam wall crumbled in 1992. As an off shoot of the liberalization policy, privatisation took root in the ensuing years, the fastest on record in the world at the time and since. There fore we can say that FDI should be espoused because the global trends dictate that and secondly, that is the only way development is going to be fostered if and when the local capacities cannot effectively and profitably exploit their resources. Globalisation entails the integration and uniformity of global business transactions as a result of reduced distances in the world due to advanced technologies, multinational investments and the homogeneity of tastes propelled by the potent modern machinery such as the electronic media. Thus, the world is viewed as one village because what ever happens at one end of the village has a rippling effect on the other end. Thus, globalisation transcends political, national or 450
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country boundaries. What were stringent boundaries inhibiting international trade have given way to a more harmonious world with similar tastes, perceptions and desires. In addition to globalization, international trade today defies political and cultural boundaries breeding a global cadre that freely float around any part of the world. Thus, financier is at liberty to invest their resources in any country of their choice where they perceive that they will reap as much profit as possible. Thus, an investor will never put a coin where their profit motive is either threatened or not maximized. If that investment destination offers all the basic requisites attractive to the investor, they swiftly set up camp and get busy siphoning as much as they can. If they feel insecure and the threats out weigh investment gain, they either delay investing or in worst case scenarios, pull out altogether. By that token, the hosting country’s image hangs in the balance. Thus, we can see that every country that hopes to woo, as many foreign investors must ensure it makes their country as attractively competitive as they can relative to their competitors. FDI is without doubt necessary and desirable. What are the benefits of DFI to the country, individual and investor? This is a broad and deep question but we shall answer it in general terms as relates to the three entities mentioned above. The first benefit of FDI is that it brings about development in a given locality. The much-needed massive investment from abroad brings with it the necessary capacities that accelerate development. Check any place where genuine investment has taken root, what do you see? The place has changed record short time! Imagine if that investment had not come, things would pretty much be the same despite our boasting of having huge latent potential of untapped resources. Apart from the financial muscle, DFI brings with it new technologies, skills, competencies and in the process, these trickle down to the natives, if they are wise to appropriate these and improve on them. That is partly how the Japanese changed their fortunes from rags to riches in less than fifty years. Secondly, DFI brings about the transference of competencies and skills cheaply as alluded to in the previous point. The locals imbibe new ways of doing things more efficiently, cost effectively and profitably. Long after the investors have left the country with their investment, these rubbed on skills remain with the natives. In other words, they do not carry with them the mental capacities that can be used to develop the individual and nation. Thirdly, DFI brings about hard work. Where people were indifferent, laid back and lazy, DFI compels them to work for their money and casts away 451
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the laissez faire mentality. For far too long, the Zambian Government literally spoon fed the citizens but the third republic suddenly removed that golden spoon, and guess what, the children mourned! To date many are still lamenting and are yet to recover. The sooner they get themselves together and settle to some real hard work, the better. This resolve (to work hard) will by and large terminate the much murmuring that characterizes many Zambians against any foreign investor today. Compare Zambia with our neighbour Tanzania, what a vast difference! I am sure Nyerere avoided spoon feeding, knowing its backlashes. The only way to take charge of our destiny is hard work period! But fourthly, DFI changes the working culture, mindsets and attitude towards life. Although closely connected to the previous point, the point here is that the average lazy Zambian soon realizes that they must work with their hands to generate wealth. They read the times, yea, redeem the time and know how to or what to act on. The high urbanization trend in Zambia would be reversed in record time as people realize that the major factor of production, land is abundantly at their disposal (assuming corruption and other vices do not interfere!). As I move around Zambia, I often wonder why we rush to live in the city to be packed like sardines when the large landscape goes begging from generation to generation. When an investor buys large tracks of land for investment, everyone is up in arms, what a paradox! Granted, the strategic eye sees the future implications once our people realize. A land crisis might ensue in the not too distant future. Another school of thought positively propagates that as much land as possible be given out to people serious to productively develop the land regardless of where they come from. This is a plausible idea, provided the right safe guards are taken care of to avoid serious blunders that Zambia has faced with respect to the mining and trading companies thus far. We have spent much time around this hill, let us consider the fifth benefit of DFI and it is this: DFI contributes to Gross Domestic Product, GDP for short. Among many things, GDP refers to the sum of all the transactions relating to the income and expenditures of a country in a given time period say one year. If the country received more income than it spent, then that country is said to be developing or experiencing a growing economy. Any positive GDP is desirable and indicates that the productive capacities are being effectively and efficiently utilized to generate wealth. The goal is to achieve as high GDP as possible, say 10-12% as China has been experiencing lately. Other more mature and developed economies such as the USA have a 4 to 5% GDP which is fine but not good enough for pauper 452
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countries like Zambia. You will recall that as late as 2000, Zambia’s economy was in negative growth but this turned around 2003 when the Mwanawasa regime sacrificially applied the World Bank recommended remedial measures. Where Kaunda reluctantly tread, Mwanawasa shut his eyes and ‘heartlessly held the bull by the horns’, though only for a season. Although politicians trumpet their achievements, the tangible results are yet to be seen and felt by the common man on the ground. Be that as it may, DFI is changing the tide. As we speak, inflation is down to around 8%◊, interest rates are down, the kwacha relatively stable (though sometimes suspected politically manipulated e.g. before the 2006 elections, look at where it is now, barely 5 months later!). In the sixth place, DFI means more development, resources, higher standard of living and an opportunity for Zambians to invest freely in their own country and abroad. As foreign investors carry out their businesses, making their work easier, some of them are cognizant of the social responsibility that goes along with their resource exploitation. In other words, investors, in addition to their marketing ploy, wish to thank the community in one way or the other by paying back in kind or cash. That explains why some companies like Celtel would go out of their way to promote the famous “Star Search” because they are essentially saying, “Thank you Zambia for what you have done by making us rich, we pay back some how by promoting this contest”. Or take for example, KCM paying the national soccer team coach. These are but examples. In the cases mentioned above, the corporate image is built as well as lengthening the “acceptability of the product/service/company”. Seventhly, FDI frees the government from involving itself in business thereby allowing it to focus on creating “an enabling environment” as Chiluba often used to say years ago. In such a scenario, the government cuts down on public expenditure as other players take over the running and initiation of some activities such as building schools, private colleges, stadiums, businesses etc. Thus, the government limits itself, and conveniently so to a regulatory entity that facilitates a working framework in which everything fits together like hand in glove. Eighthly, if prudently handled, DFI brings about job creation and economic expansion. As more investors pour in resources into a country, different industries, traditional and new, cause an expansion in the economy thereby ◊
As at Oct/Nov 2006
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creating more jobs for the natives. This significantly contributes to the reduction in unemployment levels. Ninthly, DFI fosters better international relations between countries as the political boundaries are bust and peoples interact, initially on business premise but later on cordial friendly relations level. Tenthly, the perceived job creation expands the tax base for the government that in turn translates into better social amenities and services. Eleventh, in a perfect world, DFI and privatisation allows more of the locals to be serious stakeholders in many resources provided they have the money as opposed to a command (e.g. socialist or communist etc) setting. In addition, a free investment climate fosters entrepreneurial ship among the natives, having opened their eyes to exploit the available resources and markets at home and abroad. Twelfth and lastly for our purposes, DFI brings about efficiency, raises competition thereby improving product and service delivery quality. Thus, people have a wider choice, higher consumer power and in time, make it cheaper to do business in that country. That said, the glowing picture painted above seems to show a near impeccable ideal world which presupposes that every factor will be in place, static and maximize good for all concerned. For a moment, it looks like a “win-win” scenario but sadly, DFI does have the down side as well, especially if the playing field is not level. If one side is desperately poor while the other is filthy rich, exploitation of man by man results. The different development paces and levels between the nations also play a major role as those from developed nations will have refined systems that cheaply “grab” the raw materials from the less developed, process them and return them to those countries at double or triple the value. Value added goods are good but the inequalities rub off the benefits and it becomes a unidirectional affair. It is like a “rat versus elephant” tag of war or a “speed boat versus canoe” race. At times, the stakeholder /trading nations are worlds apart. What are the real tangible negatives of DFI as experienced in countries like Zambia? Many come to mind but a few will suffice and we rest our case there after. Firstly, the DFI advent often results in massive job cuts (or losses) depending on what economic philosophy is being changed from. If, as was the case for Zambia, the economy mutates from a command to a pure 454
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capitalist economy, many uncompetitive entities either fold up or are privatized. Thousands of perceived “excess staff” are shed off in a bid to reorganize the entities into profitable ventures as dictated by the new owners. Let it always be remembered that the profit motive is paramount in the investors’ mind. That is what happened in Zambia after 1992 and continues to. Watch the ZANACO saga repercussions begin to unfold. Job losses are inevitable. Secondly, the hard earned and developed companies are surrendered into foreign hands that seem to “reap where they did not sow”. Many times, it appears a rip off. Take the painful example of the ZANACO privatisation, a profitable indigenous multinational company sold off by the stroke of the pen! This transaction makes one feel hot under the collar. Consider the ZCCM arrangement (although initially nationalized in 1981 from private hands). The massive government investment, though not profitable at the time, was sold off at ridiculous prices! Thirdly, DFI withdraws services from places where the Government once serviced. If a place or investment area is not profitable to the investor, they swiftly close off their investment and relocate to a place where they think they will benefit. For instance, many Banks closed their branches from the rural areas and only concentrated in the profitable urban centres. The UBZ serviced all the routes, no matter how bad but the modern investor shuns these and cannot be compelled to go there. Though it is an opportunity, it is not attractive enough. Fourthly, DFI, if corruptly and hurriedly done, results in frustration, loss, disillusionment, theft, and untold scandals. The nation (Zambia) is still licking the MMD regime wounds after they recklessly privatized everything without due regards to what their actions entailed. Very little or no safety nets were provided for the redundant. For instance, people strongly think that the Zambia Airways should not have folded its wings had reorganization been allowed to take place. Corruption surrounds itself with clandestine manoeuvres that only profits a small click of fellows, male or female. It is a tragedy when unprincipled men and women are at the helm of such a sensitive exercise. For some time now, Zambia has seriously lacked politicians of valour laced with high integrity, strategic foresight, great mental aptitude and disinterested professionalism. Unfortunately, they (politicians) are in the driving seat not the citizens at large. Myriads of Zambians will still bear the repercussions of some of those thoughtless 455
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mistakes for generations to come. The new dealers are not any better, especially after the ZANACO and mineral royalty scams. Corruption is now more entrenched, complex, invisible but highly present, deep-rooted than ever before. At face value, the corruption fight by the government of Zambia seems to be but a smokescreen or at best, a political gimmick. In the mean time, spurious transactions continue to take place in the back ground, leaving no fingerprints or audit trail! In a nutshell, in many deeply corruption infested countries, all the grand perceived benefits of DFI do more harm than good because the rich and powerful grab almost everything to themselves leaving the vulnerable poor (who are in the majority) permanently wedded to poverty. Fifthly, DFI sometimes robs people of their identity. Granted, we are in a global world but the self-identity and esteem is lowered especially if the nations’ population critical mass is illiterate as the case is in Zambia today. Because people do not fully understand the issues, they feel robbed and dribbled at the same time. A total dependence on DFI makes a statement to the world that the locals have totally failed to manage their own resources and are now mortgaging their country to others from abroad. This hits hard on the people’s pride, esteem, aspirations and resolve to develop their lot. It is painful to note how Zambia has thoughtlessly given away its sovereignty at the mercy of DFI. People paid with their lives to redeem the country from foreign control but today, barely 43 years down the line, we are crying for the same exploiters to return and control factors of production and thereby de facto rulers. That explains why KK and others constantly grieve when present politicians sale the nation to get a kick back for them selves. This is a bitter pill to swallow that no one wants to talk about. But in the sixth place, DFI defies local rules and regulations once the investors are entrenched and in control of all the key productive assets. The powerful multinationals call the shots in many countries and get away with many atrocities ranging from breach of labour laws, pollution, unfair competition, clandestine dealings and out right disregard for the powers that be. We see that in Zambia repeatedly, such as the BGRIMM explosion and KCM pollution sagas of 2005 and 2006 respectively. Seventhly, DFI does not really bring about home grown sustainable development but rather what is visible are but crumbs falling from the masters’ table. If those are but tips in the iceberg, then what about the huge hidden mass from public view, under the water? Presently, an investor can 456
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bring in and take out 100% of their investment. Further, it appears that when they invest say $ 100,000, they reap a million times more and quickly siphon it away to their off shore accounts or develop their home countries (which is reasonable any way!). Once they donate a paltry $ 100,000 as social responsibility, every body goes into a celebration frenzy, but what is $ 100,000 compared to a billion dollars they have remitted abroad? What is 250 housing units built compared to $ 1 million equivalent of cash siphoned out? Eighthly, in a bid to attract DFI, many countries steep so low as to literary give away all their resources by offering unbelievable tax holidays and concessions. These investors come and do business for the period that they have a tax holiday and suddenly fold up when that ends. They vanish, liquidate or return using another business name and again we give them another 50 year tax holiday! This is not strange in Zambia, one wonders whether the powers that be are involved in these scums! Ninthly, DFI, leaves poor people poorer as the rich-poor gap widens. The state is more interested in over taxing the already squeezed citizens while the foreigners go scot-free for many years, yea, they go laughing all the way to the bank. In a capitalist arrangement, the rich and famous are powerful often having the law on their side. I am yet to see a poor person easily get solid and expeditious justice in our land compared to the rich. “Money talks”, as they say. Look at the KCM pollution saga of 2006, had it been a local company which had polluted the Kafue river, all the government organs and powers could have clamped down on them. Tenthly, DFI, depending on government policy, often favours the foreigner rather than the native. In a bid to attract investment, sometimes ridiculous provisions in the law make one wish they were foreigners because then, more attention and support is diligently offered by the government. If a Zambian ventures to enter a similar business as the multinational, all the laws seem against them and eventually choke them out of business. If that does not, red tape does the trick. I often wonder how the government offered large tracks of land to the Libyans while thousands are languishing across the country for want of land. Eleventh, if not well handled, DFI destroys the spirit of national hood, aspirations and loyalty. People lose their unique identity and have no real patriotic spirit to their country. 457
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Twelfth, if the laws are bad, expect continued exploitation of man by man as in the case of the privatisation laws of Zambia. They give the investor too much bargaining and leverage power compared to the citizens. Unless and until it is changed, DFI will continually appear a terrible monster. Thirteen, Globalisation blizzards bring about fundamental changes on the business scene. It some times kills local competition and reduces diversity in other cases. An example will do. Remember the once famous Chilanga cement brand? This brand made Zambians proud as it was used to build many world class structures including the mighty Kariba dam wall. Well, that brand in now gone. An international investor bought off the company and changed the name to LarFarge from Chilanga in 2007. After hapless attempts by some proud Zambians to preserve the name, they were overruled by the powerful investors who care less about anything that militates against their desires. That signalled the end of the powerful brand name but certainly a gain for the foreign investor whose primary motive is profit. Fourteenth and probably lastly for now, DFI promotes wanton exploitation of natural resources. The Foreigners have a clear head start and advantage compared to their counterparts. The archaic laws promote exotic investment as it easily facilitates their paper work and builds their cartel network. Look at the Lake Kariba arrangement, who exploits the Kapenta business the most? Further than that, DFI promotes pollution too. The multinationals sometimes flee their countries to invest at places where weaker pollution laws exist. While the desperate poor countries rejoice that a Saviour has come to town, in actual fact the enterprise could just be transferring the pollution point and get away with it for many years hence. Once confronted, they revert to the porous, ambiguous agreements or threaten to leave. At that point, the pauper country’s hands are tied and thus stand aloof helpless but painfully watching like a statue while exploitation continues. Cheap labour is another area worth pursuing and looking at. We have thus crystallized only twelve of the many evils connected to DFI, we leave it to others to delve into other details but for now we run to a conclusion. It is now clear from the above point that DFI does have pros and cons which every entity should carefully consider before any firm commitments can be entered into. One would ask, do the benefits outweigh the demerits of DFI? 458
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Not necessarily. Depending on the context and extant investment policies, DFI can be a blessing or a curse. It is however advisable to avoid all extremes which may lead to acrimony or capital flight. There is need to move out of our time honoured enclaves and see what the global economy offers. The five imperatives of economic development: Market led, Knowledge based, Entrepreneurial, Regionally integrated and globally connected need to be vigorously pursued. Needless Xenophobia∑ ought to be exorcised. This author holds strong personal opinions about this matter but he leaves it for you to make informed decisions. Further, he appeals to you to read various literatures on this subject so that you comment intelligently the next time the subject comes up in your discussions with colleagues. (c) Billy C Sichone ====================================================== Bibliography African Review of Business Technology, Attracting the foreign investment, April 1998 issue pp17 Bennet Roger, International Business, Pitman Publishing, 2nd edition, 1999, London, San Francisco, Kuala Lumpur, Johannesburg Brake Terence, Managing Globally, Dorling Kindersley limited, 2002, London, New York, Munich, Melbourne, & Delhi. Fifth National Development plan (Zambia) 2006 (www.cspr.org.zm) Hill W. L. Charles, International business, 4th edition, McGraw-Hill Irwin, Boston, Burr Ridge, Il Dubuque, IA Madison, WI New York, San Francisco, St Louis, Bangkok, Bogotá, Carcas, Kuala Lumpur, Lisbon, London, Madrid, Mexico City, Milan, Montreal, new Delhi, Santiago, Seoul, Singapore, Sydney, Tapei, Toronto Lewis, Arthur, W, Development Planning: The essentials of Economic Policy, George Allen & Unwin, London, Boston, Sydney, 1979 McIntyre Chris, Zambia: The Bradt travel guide, 2nd edition, Bradt publications, UK, 1999 ∑
Xenophobia= strong dislike of foreigners, intolerance, racism etc
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MISA/PANA, Tanzania’s land bill stirring up controversy, The Post, June 11, 1997 Myers, Bryant L, Walking with the poor:Principles & practices of transformational development, Orbis books/world vision, Maryknoll, New York 10545, 7th printing March 2004 Ndulo Muna, Mining rights in Zambia, Kenneth Kaunda Foundation, 1987 Ndulo Muna, Chinese Investment in Zambia, post, Thursday, August 21, 2007. Reilly K. Frank and Brown C. Keith, Investment Analysis and Portfolio Management, 5th edition, The Dryden Press, Harcourt Brace College publishers, Fort Worth, Philadelphia, San Diego, New York, Orlando, Austin, San Antonio, Toronto, Montreal, London, Sydney, Tokyo United Nations, FINANCING FOR DEVELOPMENT: Monterrey consensus, Mexico March 2002 Vision Korea Execution Committee, Revitalising the Korean Economy toward the 21st century, Business Times, December 1997 pp 27 Winfield R.G & Curry S.J., Success in Investment, 3rd edition, John Murray Publishers ltd, 1987 Post script. Talents Cognitive, creative talents When I was growing up, we were taught that the best place to be was in the classroom and eventually in the office. Anything outside the classroom spelt doom e.g. art. There is a grain of truth in this but the times demand that we learn from everywhere, whether the TV, internet, church, on the street, from the electronic media etc. In other words, the tree of knowledge is found everywhere along our path. There is life outside the classroom provided we have the learning strategic eye in the right place. 460
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It is increasingly the conviction of the writer that people should be allowed to explore their strengths and given leeway to pursue them. This can be done by exposing them to varied scenarios and then help them identify their inclination. For instance, some are artistic in nature, others are mathematicians while others are technically inclined. Each must be helped to early identify and nurture their prowess so that they can make an effective contribution to society. By that token, these various strengths must be rewarded accordingly. At the moment, a sports person who probably has never seen the inside of a class room, earns more money by running around a pitch, chasing a piece of leather for 90 minutes than one who has spent 20 years in studying pulp. What is the secret? The secret lies in skill and the pleasure derived by the on lookers. My grade eight teacher used to say “leave the world better than you found it” That was well and aptly said. I have sought to live up to the saying. “The trouble with much of the advice business gets today about the need to be more vigorously creative is that its advocates often fail to distinguish between creativity and innovation. Creativity is thinking up new things….A powerful new idea can kick around unused in a company for years, not because its merits are not recognized, but because no body has assumed the responsibility for converting it from words into action. Ideas are useless unless used. The proof of their value is only in their implementation. Until then, they are in limbo…..The scarce people are the ones who have the know how, energy, daring, and staying power to implement ideas…” Peters T J, Waterman R H Jr. In search of excellence, lessons from America’s best run companies Warner books pp 206, 07 Consortiums The greatest weakness Zambia suffers from is “Chimuntu management”. Viewed from another angle, the same chimuntu strategic alliances would reap enormous benefit for all…Zambians need to build miniature consortiums so that they get ahead. One will provide the skills/technical know how or indeed the technology. Presently, most just want to employ others rather than be equal partners -Billy Sichone 14/11/2005 Attitude and perseverance In Africa, what is needed is more than mere resources but the right attitude. Nigeria for example has had huge oil reserves and extraction since the 1960’s but the country is still a net importer of the commodity, despite
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producing over 2 millionℜ barrows a day, making it one of the world’s largest producers. Due to the rampant endemic and systemic corruption, the country remains in squalor and abject poverty. The oil unit prices are among the highest in the world and borne by the consumer. The resulting effect is that people have begun to revolt, leading to erratic and interrupted supply. This has a negative rippling global effect. Global thinking
Globalization and standards In this global world, the genius will come from any point rather than the renowned world’s Universities and institutions. Examples abound, for instance the Woman Commander of the Space shuttle Discovery scheduled to have soared to the skies (13th July 2005) after almost 2.5 years after the last catastrophe of Feb 2003 (The Columbia Space shuttle disintegration on re-entry of the earth’s atmosphere) Eileen Collins, 48, is from some obscure Syracuse University, USA. Others to be added to this unique list are our own world class Kalusha Bwalya, Collins Mbesuma, Samuel Matete and a whole host of other athletes. It is reported that some of the leading scientists at NASA are from UNZA. From the foregoing, it is therefore folly to believe that only the World’s elite universities¬ will produce the all stars team. Take a look at the Real Madrid team. This team, by all standards is the dream team but look at their dismal performance season after season. I am convinced it is not a question of capacity as much as pride. After all, they all have made it! In this global world then, people must learn to think outside the box of course whilst meticulously maintaining the standards. Like once successful but obsolete strategies, standards may also stifle initiative, creativity and development of thought. With all due respect to those upon whose shoulders we now stand, there is an urgent need to constantly re-examine the changes in the environment. This should be a universal principle to operate with.
ℜ
Source: “Cursed by wealth” World now program aired on e-channel 24/10/2005.
¬
Although if you can get to the best Universities of the day, why not pursue your studies from there? Brand names do half the work in job hunting game.
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Care however must be taken not to hurl out time tasted principles but the methods and approaches are the ones that are variable. The same goes for many once popular churches in Europe that are by and large deserted today. What about the Cinemas, Post offices and Discos? With the human eye, all these failed to mutate with the times and have thus remained white elephants. That does not mean in and of themselves these are useless, far from it! But rather, they needed to read the times, anticipate environmental changes and proactively position themselves at places where the target populations are.
We could therefore safely assert that in future, all travel (Local, international, inter planetary and galactic) will be far less rigorous than it is today. Space travel will be a piece of cake than at present. International travel will be shorter and to some extent, more or less exciting as people will have more options to choose from, whether the 8-10 hour in-atmosphere travel or simply take a leap vector into space and back into the atmosphere in a matter of minutes. The choice will entirely be yours. The conventional long range tedious trip will be more costly, more polluting, riskier and time consuming while the new way will be cheaper, quicker, less polluting (noise and other wise), and comparatively more exciting and rigorous but far safer. Jet lag will by and large be a thing of the past. Undoubtedly, video conferencing via the pervasive technology revolution will have a huge impact on international travel, people will still want to physically travel places to get a different feel, far away from home. In a nutshell, air travel will depend on angles relative to the destination as illustrated below: Space station/orbiter
Earth
Earth
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On another plane, interplanetary and inter galactic travel will be faster, efficient and more endurable for manned as well as unmanned flights. The humans will hardly be travel torn at their destinations. The space probes & ships will either use nuclear power (the slower probes although faster and more efficient than the present crafts), solar sails (using solar winds or energy-photons etc) or internally generate energy to move at faster than light speeds literally going against present conventional scientific thinking. This will make the spaceships invisible when at hyper speed and enable the ships easily penetrate any body mass. People will develop hibernation chips fitted in the brain to minimize energy use and loss during the light year journeys. Reduced energy use will result in oxygen conservation and lighten the payload. In addition, the shuttles will have inbuilt oxygen making machines, gardens and crew residences for periodic refreshment. Presently however, all that seems untenable and far fetched but the Star Trek-like technology will develop sooner than we realize. Remember the cell phone and computer, once thought practically beyond reach are now more than basic things today. Long rang strategic thinking and acting will take us places, if only we have the right mindsets.
We have thus successfully run the race from the first chapter till now. What ground we have covered! What waters we have raffled! You will do well to take heed to these pertinent injunctions or else pass through life defeated, disoriented, disillusioned feeling cheated. The writer will feel a measure of success if you choose the proactive road to success. Fare thee well! NB: The angles will determine the travel cost, the bigger the angle, the higher the cost…. Today’s Space shuttle will look really primitive, already, it looks ancient in comparison to the Aires, the more versatile future shuttle. The Space stations will also have to need frequent and regular update using Solar power largely for energy. The moon base will be busier than the Heathrow or Chicago airport. Tourist destinations and other anthropogenic activities will be developed on the delicate lunar landscape and people will also need travel documents or identity chips on the moon as it will be fully colonized, mapped and functional.
Examples of bad/poor customer service & relations.
If you are going to capture a substantial portion of the market, apart from the high quality, volume and distribution of goods, you will need to have an excellent customer focused strategy where the customer is at the centre of what ever you are about. The customer is actually reason why you continue in business success and hence must be treated like an egg, always treated delicately, consulted and continuously satisfied. The goods and services must be available at the click of the lord customer in the right dosage, packaging and quality as well as quality absence of which spells disaster. One trick about customers is that once treated well and satisfied, they will do half the marketing for you as they will not only tell others about the hidden product attributes but also the superb
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service they enjoy. In short, they will tell ten others who will in turn tell ten others each. The opposite is equally true where the customers vow not to have anything with that product or entity. They as it were, deal with the product at arms length. I always find Zambian carpenters and builders rather interesting because they seem to carry the same defective gene in them. They are usually not always poor at estimations even after a life time of doing the same thing. Another negative trait is that they rarely stick to their word or keep promises. If you ask them to do a chair for you, they will summon all the best words to convince you that they can deliver the next day but once you pay them, at times it is even cheaper to buy a finished product from the shop than continue following up the chair progress! In other words, a job which could have been done in a day will take over a year instead because of the circus surrounding the chair. At one time, as an organisation, we ordered a filing cabinet which took over a year and a half to be delivered to us, and that amidst police threats! The good news is that the quality that finally comes out is of high international standards but then, you are uncertain just when you actually collect the product. These people, like any other business person slowly, effectively strangle their businesses as word gets round about their unreliability. How is your customer service? What I notice about Zambian carpenters and builders is that they do not care about the time frame agreement but whether they ultimately deliver or not. When talking to them about their failure to deliver on time, their insistence is that they will deliver the quality good at some indefinite point in future. Now that kind of reasoning is very defective because the ones who ordered the products have a specific time plan for those goods. For instance, we ordered a dining suit three weeks before a special set of visitors came. As usual, the carpenter promised to deliver the next week but alas, it took over a month before even the first piece of the dining set became visible. Our visitors came and left without using the product. On the carpenters’ side, quality not timely product delivery was the issue. We vowed never to order unfinished goods again.
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Index A
H
Acumen .......................................................... 436 AIDS.... 10, 98, 99, 100, 198, 209, 436, 440, 442, 451 Allies .............................................................. 436 ARV ......................................................... 97, 436 Autocracy ............................................... 344, 437
HIV 10, 64, 67, 74, 86, 96, 97, 98, 100, 198, 209, 213, 437 Human resource management.........................437
B Ba Tamanga .................................................... 437 Bachelor of Arts (BA) .................................... 437 Bible .. 96, 99, 172, 175, 188, 210, 230, 243, 274, 350, 379, 437 Blind spots ...................................................... 437 Brain storming ................................ 358, 362, 437 Bureaucracy ........ 93, 99, 120, 264, 349, 366, 437 Business ..... 14, 28, 41, 48, 51, 68, 70, 72, 86, 98, 100, 105, 121, 143, 164, 206, 207, 210, 216, 232, 276, 277, 373, 374, 380, 404, 416, 419, 421, 431, 432, 437, 438, 441, 443, 447, 449, 451
I Ideology ..........................................................437 International relations .....................................437 Intuition .................................. 139, 166, 246, 437 J Jettison ............................................................437 L Leadership ... 16, 82, 92, 139, 144, 154, 164, 437, 442 Linkages .........................................................437 M
Case study....................................................... 437 Comfort zone .................................................. 437 Concept................................................... 119, 437 Coordination ................................................... 437 Cue ................................................................. 437 Culture ............................ 191, 198, 234, 339, 437
Management buy out ......................................437 Management by exception (MBE) ..................437 Management by objective (MBO) ..................437 Management by walking around (MBWA) ....438 Management guru .............................33, 291, 438 Marketing .... 10, 17, 18, 48, 49, 70, 98, 103, 110, 207, 221, 222, 223, 225, 228, 235, 237, 238, 276, 277, 373, 416, 438, 440, 441, 445 Master of Arts (MA) .......................................438 Mitigation .......................................................438
D
N
Definition ................................... 29, 90, 113, 437 Democracy................................................ 10, 437 Development . 10, 13, 16, 63, 69, 70, 84, 94, 184, 207, 240, 390, 403, 404, 416, 417, 431, 432, 437, 440, 450, 452 Disease ........................................................... 437 Doctorate of Philosophy (PhD) ...................... 437 Doctrine .......................................................... 437
National domestic product ..............................438 Network ...................................... 10, 11, 230, 438 Niche ........................................................90, 438 O
E
P
Esteem .................................................... 300, 437 Event............................................................... 437
Paradigm .........................................................438 Pathogen .........................................................438 Perception .......................................................438 Plans .........................................................47, 438 Politics .................................... 156, 196, 346, 438 Power .............................................. 271, 326, 438 Production Management .................................438 Program ........ 10, 13, 77, 147, 219, 331, 438, 452 Project ............................................. 147, 350, 438 Projection........................................................438 Proposal ..........................................................438
C
F Fellow of X institute ....................................... 437 Football........................................................... 437 G Globalisation ............ 17, 193, 208, 422, 430, 437 Governance............................................. 227, 437 Gross Domestic product ................................. 437
Operations Management ................. 103, 438, 450 Organisational behaviour ................................438 Organisational development ...........................438
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R
T
Renaissance .................................................... 438 Rigging ........................................................... 438
Tactical level ............................................41, 438 Target......................................................231, 438 Team ...... 10, 43, 47, 87, 146, 159, 243, 247, 284, 295, 296, 313, 315, 317, 318, 379, 438 Technology ...... 61, 116, 121, 193, 196, 227, 237, 257, 284, 314, 371, 412, 431, 438 Terrorism ........................................................439 The Monitor Newspaper .................................439 The Post News paper ..................................2, 439 The Times of Zambia .....................................439 The Zambia Daily mail ...................................439 Theo centric ....................................................439 Theory ..............................................28, 100, 439 Total quality management (TQM) ..................439 Tuntemba ..........................................83, 415, 439
S Scandal ........................................................... 438 Self managing teams....................................... 438 Silver bullet .................................................... 438 Soccer ............................................................. 438 Sport ............................................................... 438 SRC .................. 10, 148, 222, 329, 334, 335, 438 Strategy.. 9, 14, 17, 20, 29, 30, 31, 32, 36, 40, 43, 53, 71, 90, 102, 103, 106, 121, 128, 132, 169, 201, 222, 358, 378, 379, 380, 383, 384, 385, 386, 388, 392, 393, 399, 402, 405, 412, 438, 449 Survival .......................................... 247, 438, 445 SWOT.. 22, 42, 46, 104, 178, 179, 180, 187, 200, 201, 202, 203, 438 System ............................................................ 438
V Values .............................................................439
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Some key words in this book: Acumen AIDS Allies ARV Autocracy Ba Tamanga Bachelor of Arts (BA) Bible Blind spots Brain storming Bureaucracy Business Case study Comfort zone Concept Coordination Cue Culture Definition Democracy Development Disease Doctor of X (discipline) Doctorate of Philosophy (PhD) Doctrine Esteem Event Fellow of X institute Football Globalisation Governance Gross Domestic product HIV Human resource management/people management Ideology International relations Intuition Jettison 468
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Leadership Linkages Management Management buy out Management by exception (MBE) Management by objective (MBO) Management by walking around (MBWA) Management guru Marketing Master of Arts (MA) Master of Business Administration Master of Business leadership (MBL) Mitigation National domestic product Network Niche Operations Management Organisational behaviour Organisational development Paradigm Pathogen Perception Plans Politics Power Production Management Program Project Projection Proposal Renaissance Rigging Scandal Self managing teams Silver bullet Soccer Sport SRC Strategy Survival 469
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SWOT System Tactical level Target Team Technology Terrorism The Monitor Newspaper The Post News paper The Times of Zambia The Zambia Daily mail Theo centric Theory Total quality management (TQM) Tuntemba Values
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Brief Glossary Anthropology: The study of man, activities, beliefs and attitudes. In Christian theological circles, this refers to the study of man prior to and after the fall including sin. Antithesis: opposite, contradicting, antagonistic or contrasting Aspiration: This is a strong desired end by a person or entity, usually intangible but latent within one’s core values and system. Bureaucracy: The insistence on and use of pre set standard procedures, systems and processes in organisational transactions based on hierarchy, status and position. This entails following laid down rules and regulations in carrying out any transaction with due regard to the powers that be in a given entity. Business: The organised activity with a view to make profit or material gain. This includes having a common goal, agreement, goal congruence and entrepreneurial risk taking so yield maximum benefit and profit. Christian: A regenerate person who believes in Jesus Christ as the only deliverer from sin and walks as Jesus did in holiness, righteousness and justice. Economics: The study of wealth creation and distribution in a given nation, state or country. First introduced by Scotts man, Adam Smith in his legendary work, “The wealth of the nations” Effectiveness: This is the outcome or effectual result of an input. This is the observable change that has resulted from a given prior activity Efficiency: This is the rate of doing activity or performing a given task. In the strategic context, it boils down to the ability to proactively do something in order to get to the next level ahead of others. Once agreement is passed, all concerned parties consider the action as good as done. Energy intelligence: This is having the knowledge on what to do, the implications and where the power source and uses are at any given time e.g. when BP closed its Alaska oil field in August 2006, the cost of oil per barrow shot from US $ 74 to $ 77. Environment: The place/market in which an entity operates Globalisation: A process of becoming one global culture though interaction among countries and cultures is currently being accelerated and supported by a vast array of communication and travel technologies (Bajema). Governance:
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Gross Domestic Product (GDP): This is the total products and services generated by all people in a given country in a period of one year. This is the presently used international standard as it is easier to compare country to country GDP on a global scale. Implode: Incontinent: Not able to control initial reflex action in one’s beahaviour Intuition: The unique ability to discern by gut feeling into a veiled situation and come up with the solution. Intuition is generally intrinsic but can be developed to a certain extent as a result of experience. Jettison: This is to eject, get rid of, throw away, throw over board or abandon. This word is universally used but more specially in the aeronautic circles to refer to the ejecting or separation of something from the mother space ship. Leadership: This is the ability to inspire, influence, motivate and persuade people towards a position that they would otherwise move to without the said influence. Management: This is the process of coordinating, controlling, motivating, and directing resources towards a predetermined end. These resources could be human, financial or material. Market intelligence-This is information relevant and critical to market success at any given point in the product life span or prior to the launch of a new product. Usually, this information is captured in various ways that includes market research among many other ways. National Domestic Product (NDP): The total amount of products and services produced by citizens of a given country in the period of one year. This is regardless of where the citizens are position on the globe (Oxford Ref. PP 654) Pariah: undesirable or outcast Pathetic fallacy – crediting inanimate things with human emotions. Pathos – a quality in speech, writing, events etc. Plagiarism: The illegal use of some one else’s writings or intellectual property without giving due credit, in effect claiming to be the originator of that creation or writing.
Poverty- being poor, great lack of money, attribute or resources. Programming: The systematic and logical scheduling of events, activities and…. Arising from the prior set goals” BS 6/04/06
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Sarcophagus- This is a stone coffin used in ancient times to quarantine bodies or any substances that must not be exposed. In recent times, the most famous is the Chernobyl sarcophagus that has entombed the nuclear debris that resulted from the disaster on 26th April 1986. Shrapnel: This refers to the lethal sharp debris that fly out wildly after an object explodes sending metal pieces flying in all sorts of directions injuring or destroying anything it each piece finds in its path. Some bombs have deadly shrapnel once they detonate. (24/07/2006) Strategic awareness: “Is the understanding of managers within the organisation about (a)
the strategies being followed by the organisation and its competitors, (b) how the effectiveness of these strategies might be improved and (c) the need for, and suitability of, opportunities for change.”∝ Strategic change: “Concerns changes which take place over time to the strategies and
objectives. Change can be gradual or evolutionary; or more dramatic, even evolutionary.”
⁄
Syndrome: This is a combination of differing elements that combine to make up one big whole. In the case of AIDS, many different diseases invade the body and make one lethal illness by weakening the immune system. A syndrome could also be a predominant mindset, cultural value or disposition. Tactics: This refers to “the means by which day by day, you turn your thinking and broad intentions into action that makes sense, and by which you respond to the detailed events that surround you”- Patrick Forsyth
∝ ⁄
Thompson PP Thompson
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General Bibliography A-bomb radiation effects digest, Harwood Academic Publishers & Bukodo Co., Ltd, 1993, Switzerland, Australia, Belgium, France, Germany, Great Britain, India, Japan, Malaysia, Netherlands, Russia, Singapore, USA
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Blanchard Ken, The leadership Pill, Marc Muchnick Free Press New York, London, Toronto, Sydney, Singapore 1996 Blyth Mike, Garland Jean, AIDS is real and its in our Church, African Christian Text books, 2003 Bob Norton Testing for excellence in a week, 2000, Hodder & Stoughton Kotler Philip Marketing Brake Terence, Managing globally, Dorling Kindersley, London, New York, Munich, Melbourne & Delhi, 2002
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Brayans P & Cronin T.P, ORGANIZATION THEORY: The study of Human relations within the business organization, Mitchell Beazley Publishers, 1983, London Bruce Andy & Langdon Ken, Strategic thinking, Dorling Kindersley, London, New York, Sydney, Delhi, Paris, Munich and Johannesburg 2000 Building your business, Thorogood, 1998, London Burnes Benard, Managing Change, Prentice Hall, 4th edition, 2004 Cateora R. Philip, International Marketing, 9th edition, 1996, Irwin McGrawHill, Boston, Massachusetts, Burr Ridge, Illinois, Dubuque, Iowa, Madison, Wisconsin New York, New York San Francisco, California St. Louis, Missouri Certo C. Samuel & Peter J. Paul, The strategic Management process, 3rd edition, 1995, Irwin/Austen Press-William Schoof Charles W L Hill and Gareth R Jones, Strategic Management theory, an integrated approach. Houghton Mifflin publishers 2001 Chikwanda Alexander, World Bank in Zambia, The Post, Friday 2, 2004 Chirwa E Clive, The Desk top factory, The Post, May 20, 2007 Cohen A. William The Art of the Strategist: 10 essential principles for leading your company to victory Magna Publishing co. Ltd 2006
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Cole Robert & Mishler Lon, Credit Management, 11th edition, McGraw-Hill, 1998 international edition Cooper R. Donald & Schindler S. Pamela, Business Research methods, McGraw-Hill, 6th edition, 1998, Boston, Burr Ridge, Dubuque, IA Madison, WI New York San Francisco, St Louis, Bangkok, Bogotá, Caracas, Lisbon, London, Madrid, Mexico City, Milan, New Delhi, Seoul, Singapore, Sydney, Taipei, Toronto Cobb E. Charles, The great lakes’ troubled waters, National Geographic, July 1987 Covey R. Stephen, Principle centred Leadership, Simon & Schuster, 1991 Cox Frank, Psychology, WM.C. Brown Company Publishers Dubuque, Iowa, 1970, USA
Crainer Stuart, THE JACK WELCH WAY: Ten secrets of the world’s greatest turn around king, Magna Publishing co. Ltd 2003 Curry S.J., Winfield R.G., Success in investment, 3rd edition, John Murray Publishers Ltd, 1987 Dallimore Arnold .A, GEORGE WHITFIELD: Evangelist of the 18th century revival. The Wake man trust, London 1990 Davies Anthony, MANAGING FOR A CHANGE: How to run community development projects, ITDG publishing, 1997
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Dixon Patrick, THE TRUTH ABOUT AIDS: What you must know, what you can do, Kingsway Publications 1994 Dowling J Peter, Welch E. Denice & Schuler S. Randall, International Human Resource Management: managing People in a Mutinational context, South-Western College publishing, 1999. Drucker F. Peter, Managing oneself, Harvard Business review, January 2005 Dubrin J. Andrew, LEADERSHIP: Research findings, practice, and skills, Houston Mifflin, Boston, Toronto, Geneva, Illinois, Palo Alto, Princeton, New Jersey, 1995 Edwards Mike, Chernobyl-One year after, National Geographic, May 1987 Executive excellence magazine 1999 Ferrell O.C, Fraedrich John, Ferrell Linda, BUSINESS ETHICS: Ethical Decision making and cases, 2000, Houghton Mifflin Company, Boston, New York Flippo B. Edwin, Personnel Management, 6th edition, 1984, McGraw-Hill book company, New York, St Louis, San Francisco, Auckland, Bogota, Hamburg, London, Madrid, Mexico, Montreal, New Delhi, Panama, Paris, Sao Paulo, Singapore, Sydney, Tokyo, Toronto Forsyth Patrick, Understanding office politics, Hodder & Stoughton, 1999 Gort A.H, Get that Job, Parragon, 2002
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Gunnicle Patrick & Kapatmoyo Abel, JOB ANALYSIS AND EVALUATION: An introduction to, ,Zambia Institute of personnel Management, Evelyn Hone college, Lusaka Zambia, Volume 1 # 1, 1988 Greewald Gerald & Madigan Charles, Lessons from the heart of American Business: A road map for Managers in the 21st century, Warner books, 2001 Haggai E. John, Lead on! Kobrey Press, 1986 Handy B. Charles, Understanding organisations, 2nd edition, Penguin books, 1976 Heller Robert, Effective leadership, Dorling Kindersley, London, New York, Sydney, Moscow, 1999 Heller Robert, Managing teams, Dorling Kindersley, London, New York, Sydney, Moscow Henderson Gordon, Quality is key, Banking world, December 1992 page 26
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Houghton S. M, SKETCHES FROM CHURCH HISTORY: An illustrated account of 20 centuries of Christ’s power, The Banner of Truth Trust, 1980
IUCN, UNEP & WWF, CARING FOR THE EARTH:A strategy for sustainable living, 1991 Jacobs W. Robert, Real time strategic change, Berret-Koehler Publishers, San Francisco.
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Iverson Ken & Tom Varian, Plain talk, John Wiley & Sons, Inc, New York, Chichester, Weinheim, Brisbane, Singapore, Toronto, 1998 Kreitner .B, Kinicki .A, Organisational Behaviour, 4th edition, McGraw-Hill, 1998. Lewis W. Arthur, DEVELOPMENT PLANNING: The essentials of economic policy, George Allen & Unwin, Boston, Sydney, London, 1966 Lindahl –Curry Kai, CONSERVATION FOR SURVIVAL: An ecological strategy, Lowe & Brydone, London, 1972 Lomasky Loren & Brennan Geoffrey, DEMOCRACY & DECISION: The pure theory of electoral preference, Cambridge University Press, 1993
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Mackenzie Fiona & Taylor D.R.F (editors), DEVELOPMENT FROM WITHIN: Survival in rural, ROUTLEDGE, London an New York, 1992 McCarthy E. Jerome & Perreault D. William Jr, Basic Marketing: A GlobalManagerial Approach, 11th edition, IRWIN, Homewood, IL Boston
Martin Walter, The Kingdom of the Cults, 2003, Bethany house publishers, Minneapolis, Minnesota Masters Peters, Men of Purpose, Wake man trust, London Maxwell C. John, 21 irrefutable laws of leadership, Magna Publishing Co. Ltd Maxwell C. John, The winning attitude, Pauline publications 1993 Maxwell John C, FAILING FORWARD: Turning mistakes into stepping stones for success, Magna Publishing Co. Ltd 2003 Meebelo S. Henry, REACTION TO COLONIALISM: A prelude to the politics of independence in northern Zambia 1893-1939, Manchester University Press, 1971 Merill A. Roger, Merril R. Rebecca, Life Matters: Creating a dynamic balance of work, family, time and money, Sound view executive book summaries, 2004 Mitroff I. Ian, Why some companies emerge stronger and better a crisis, Sound view executive book summaries, 2005 Muna Ndulo, Mining rights in Zambia, Kenneth Kaunda Foundation (KKF), 1987
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Mwanakatwe M John, End of the Kaunda Era, Multimedia Publications, 1994 Myers L. Bryant. WALKING WITH THE POOR: Principles and practices of transformational development, ORIS Books, seventh printing, 2004 National Geographic, What Voyager saw: Jupiter’s dazzling realm, January 1980 National Aeronautics and space Administration Manned space craft centre project Mecury, Results of the third U.S manned orbital space flight October 3, 1962, Washington DC O’Hara-devereaux & Johansen Robert, GLOBAL WORK: Bridging distance, culture & time, Jossey-Bass inc., Publishers, 1994 Okaland S. John & Porter Les, Cases in Total quality Management, Butterworth Heinemann, 1994
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Pride M. William, Hughes J. Robert & Kapoor R. Jack, BUSINESS, Houghton Mifflin Company, Boston and New York, 6th Edition, 1999 Ricks A. David, Blunders in International Business, Blackwell Publishers inc., 1993 Robert Heller, Managing teams, Dorling Kindersley, London, New York, Sydney, Moscow 1998 Rodney Walter, How Europe underdeveloped Africa, Bogle L’Ouverture Publication Ltd, London 1998 Rosbaum, H. Earnest, CAN YOU PREVENT CANCER? Realistic guidelines for developing cancer-preventive life habits. The C.V Mosby campany, St Louis, Toronto 1983 Ross Terril, Sichuan:Where China changes course, National Geographic, September 1985 Roux Andre, South African Economy, 6th edition, Zebra Press, 1990 Sanders J. Oswald, SPIRITUAL LEADERSHIP: Principles of excellence for every believer, Moody Press, 1967 Schapera I, Government in tribal societies, C.A Watts & Co. Ltd, 1956 Schaeffer A. Francis, Genesis: In Time and Space, Regal Books, G/L Publications, Glendale, California, USA, 1972 Schaeffer A. Francis, Pollution and the Death of Man: The Christian view of Ecology, Tyndale House Publishers, Wheaton, Illinois, 1970
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Schreiber A. Gotz & Cleaver M. Kevin, REVERSING THE SPIRAL: The population, Agriculture, and environment nexus in Sub=Saharan Africa/ Directions in development, The World Bank, Washington DC
Schultheis Robert & Sumner Mary, MANAGEMENT INFORMATION SYSTEMS: The managers’ view, 4th edition, 1998, Irwin/McGraw-Hill, Boston Burr Ridge, IL Dubuque, IA Madison, WI New York, San Francisco, St Louis, Bangkok, Bogota, Caracas Lisbon, London, Madrid, Mexico city, Milan, New Delhi, Soeul, Singapore, Sydney, Taipei, Toronto Shaw J. John & Onkvisit Sak, INTERNATIONAL STRATEGY: Analysis & Strategy, 2nd edition, Prentice-Hall, Inc. 1993 Sheenan William, WORLDS IN THE SKY: Planetary discovery from the earliest times through Voyager & Magellan, University of Arizona Press, 1992 Sheffer Earle Agusti, International Business law & its environment, 5th edition, west Thomson learning, Australia, Canada, Mexico, UK, USA, Spain, Singapore, 2002 Siame Exhilda, America is not the beauty and splendour seen in movies, Sunday Times of Zambia, May 12, 2000 Silwamba Chibaula, Phiri Gweny & Katasefa Zumani, I am a hired gun for Zambians-Sata, Post News paper, Monday November 5 2007.
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Thompson L. John, STRATEGIC MANAGEMENT: Awareness and change, Chapman and Hall, 1990, London, New York, Tokyo, Melbourne, Madras Thornbury John. F, GOD SENT REVIVAL: The story of Asahel Nettleton and the second Great Awakening, Evangelical Press, 1977 Trump J. Donald, HOW TO GET RICH: The secrets of business success from the star of THE APPRENTICE, BBC books, 2004, London United Nations, FINANCING FOR DEVELOPMENT: Monterrey Consensus, International Conference, Mexico, March 2002 Winfield R.G. and Curry S.J., success in Investment, 3rd edition, 1987, John Murray Publishers Welford Richard, Starkey Richard, Business and the Environment, Universities Press (India) limited, March 1996 Whitcomb C. John, The early earth, Baker Book House, Grand Rapids, Michigan, 1972 Willis Richard, The AIDS Pandemic, The stanborough Press Ltd, ist edition, 2002 Young Steve, Great failures & the extremely successful, Jaico Publishing house, Mumbai, Delhi, Kolkata, Bhopal, 2007. Zambia River Authority, Kariba Dam’s operation Noah re-launched, 1996
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About the Author
Billy Sichone trained as an Accountant and worked as a Program Accountant at one of World Vision International-Zambia’s large scale Area Development Programs (ADP) for seven years. He has held other portfolios but is presently a Program Manager. He studied the Zambia Diploma in Accountancy, is a Fellow of the Institute of Financial Accountants (IFA, UK) a licentiate member of the Zambia Institute of Certified Accountants (ZICA) and holds an MBA. He is married to Jane and they have two daughters together. Among his interests are reading, studying, photography, research, writing, poultry, art, meeting people, astronomy, ranching, cycling and adventure. In keeping with his interests, he has produced several DVDs, books and is a public speaker Visit his u tube site on: http://www.youtube.com/watch?v=n2vu-QE0Oj4
Or PDFCOKE site: BILLYSICHONE
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