Top 100 Caribbean Public Companies & Top 100 Caribbean CEO’s 2014 Digital Edition’s
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ven as entrepreneurs bet on their dreams and win big, major obstacles prevent others from plotting the same path.
The entrepreneurial spirit is alive and well in Jamaica. As this month’s Businessuite Magazine Cover story illustrates, there are men and women reaping benefits from innovation, inspiration, perspiration and risk taking as companies they have founded, became profitable and are now public. Entrepreneurs such as Marilyn and Stafford Burrowes of Dolphin Cove, Herbert and Michelle Chong of Honey Bun, Marcus James of Access Financial Services, and Lascelles Chin of the LASCO Group are testimony to that fact. The formula seems straight forward enough: start small, grow steadily, then go public – joining the Jamaica Stock Exchange to raise large amounts of capital. Continued profitability has meant regular dividends for shareholders, and as major shareholders, these entrepreneurs have been rewarded handsomely. Businessuite Magazine highlights some of these entrepreneurs with “skin in the game,” not as an attempt to “out” the moneymen and women but as a way of highlighting those who are willing to bet big on their dreams. These entrepreneurs are essentially putting their money where their heart and soul reside – in their companies. We think that their example can inspire the next generation of entrepreneurs; we think that their example can help to erode the distrust that many Jamaicans – affluent and poor – have of the stock market. In a country where SMEs struggle to acquire capital financing or must pay high rates for bank loans, the stock market is an alternative source of capital. And this is an area that can benefit more than just the
men and women at the top. Employees who invest in the profitable companies they work for can also reap the rewards. And the proverbial man on the street doesn’t have to feel left out either. In places such as the United States, the stock market is seen as one of the best long-term investment vehicles for the working class. Small investments over many years pay rich dividends. However, even as these entrepreneurs and their companies produce goods and services, provide employment and contribute positively to the growth of the Jamaican economy, they do so against a backdrop of real challenges and setbacks. One continued area of concern is the plight of the Jamaica dollar, trading as low as $108.00 to the U.S dollar. Even as companies remain profitable, their efforts are being eroded daily as the Jamaica dollar continues its slide. Among the other concerns are the need for regulation reform, tax reform, land titling reform, credit reform among others. The need for reform is even made more desperate because Jamaica and its Caribbean neighbors are still struggling economically six years after the 2008 global crisis. It’s still too hard to do business in the region. As Businessuite Magazine carves its niche deeper into the regional media landscape, we hope that our pages will continue to provide fodder for entrepreneurs and policymakers who are plotting a better way forward. BM Andrew Skeritt Editor
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In Europe, the zombie hunt is on. Not for undead humans, that is, but zombie banks — the walking dead among lenders, too financially troubled to lend money to an economy that desperately needs investment, growth and jobs.” Here in Jamaica and across the Caribbean, the landscape is littered with a vast number of zombie SME companies, which for all intents and purposes, are financially and economically dead, but the owners and operators refuse to put them out of their misery. Make no mistake; this is by no means an easy decision to make. But it is a necessary decision for the entrepreneurs and business owner to make in order to turn around their fortunes and increase the odds of survival. Because so many SME companies are in financial trouble, they are unable to secure critical funding to keep themselves alive. In particular, small- and mediumsized companies struggle to get the credit they need. Yet it’s those companies that provide some 80 per cent of the jobs. This slows economic growth and fosters higher unemployment rates. Attempts to resuscitate zombie companies by seeking to raise capital through the sale of new shares to investors, restricting dividends — or even by being
Telltale signs that your business is in trouble.
restructured or bailed out are pointless. But once the verdict is in, the decision must be made... quickly. Maine-U.S.-based writer and strategic marketing consultant Kathryn Hawkins identified “11 Signs That Your Company May Be Going Under” in an article published on The International Association of Administrative Professionals (IAAP) website:
through their cash. So take a look at your company’s balance sheet and compare its cash holdings to what they were last year. Maybe the company can dig itself out of a hole by issuing more stock or debt. But remember, that only ratchets up the pressure down the road.
1. Dwindling Cash or Mounting Losses and The bills are piling up. A sure sign that you’re going under is you never pay your bills on time, specifically those for raw materials. If you’re receiving constant calls from vendors about outstanding invoices, it’s a good sign that something is wrong with your company’s finances.
Your company’s income statement will show what you pay to service debt. Can the company keep losing money, and report the sales it is reporting and still have enough left to make interest payments? Typically, you want to see a cushion. You want your company to have more than enough cash left over at the end of the day to keep creditors at bay. But in failing companies, that cushion gradually wanes, and they are just barely able to cover their bills.
Companies that lose money quarter after quarter go rapidly
2. The company is cutting back on staff perks. Have you suddenly
stopped supplying free sodas and coffee in the break room? Cutbacks on employee expenses and benefits are a sign that your company is struggling. Usually before the big problems begin, companies will seek to make deep cuts in their health benefits, pension plans or other perks. Deep and sudden cuts, particularly when they take place in conjunction with any of the other above-mentioned issues, are a sign that trouble may lie ahead. “Instead of booking flights for employee travel, we started booking Knutsford Express. Company lunches and car rental services also ceased.” 3. You’re asking staff to tackle additional duties without giving a raise. Especially in cases in which others have been laid off, you may begin asking others to tackle other duties that weren’t part of their original job description— without giving a salary boost to go along with the extra work. 4. You’re paying close attention to each worker’s efficiency. In some cases, you may bring in an efficiency consultant to talk with employees about their jobs and take note of which tasks they perform each day. “Managers suddenly start walking around with a clipboard and watching you work,” says Summers. Generally, this means that you’re preparing for layoffs and want to determine which staff members can be cut from the team. 5. Customer orders are slowing down. As the company and business owner, you’re in prime position to see how well your company sales are doing. Take note of the phone calls and emails you receive. Have new inquiries dwindled to virtually nothing? Have old customers decided to
switch to cheaper vendors? Every business has a bit of ebb-andflow, so a slight drop-off isn’t a big cause for concern—but if you’re noticing that your company’s sales are in a serious slump, it’s a good indicator that there’s something wrong with the business. 6. Employees are laid off. If you have already begun laying off workers, it’s a sure sign the business is in financial trouble and other rounds may be on the cards if the company doesn’t shut down by then. 7. Top Management Defections. Even if you haven’t started handing out pink slips, you should be suspicious if you’re noticing resignations in senior management who are usually preview to conversations about pending—or worse, imminent— layoffs way before others, and often ‘jump ship’ before the doodoo hits the fan. 8. You decide to sell or merge with another company, usually larger. Generally, when a larger company takes over, it cares more about your business’ assets than its staff—which means layoffs are likely. In some cases, the company will lay off an entire staff and relocate operations; in others, it may just eliminate positions that are similar to those that exist at the larger company. Another option is to begin selling flagship products, equipment or property. If you were going through some tough times, you would probably tap your savings. And when you went through that, you would probably consider selling some of your assets to raise money. But you wouldn’t sell your personal mementos unless you had to, right? Well, the same thing applies to a company. So, if you see the company selling off its
headquarters, one of its big-name products or a sophisticated piece of equipment in order to raise cash, watch out! 9. If your company is publicly traded, its stock symbol has recently made a dramatic drop. When shareholders are unhappy, it’s usually a signal that management will be under pressure to shake up the system. 10. You’re suspiciously silent. If you are generally open about quarterly performance and new initiatives but stopped saying much of anything lately, there could be cause for concern. In this case, you’re aware of the business’ bad financial situation and now cagy to spread the news. 11. You’ve asked staff to take a pay cut or an unpaid leave. Both requests are desperate measures to help your failing company cut costs. In some cases, these cost-saving measures can prevent layoffs or bankruptcy, but generally, when these situations arise, it’s evident that you’re not on steady financial ground. As with a fatal heart attack, there are early warning signs and if you know what to look out for you could just be able to prevent death and devastation of your business and personal life. No one warning sign on its own will guarantee that your company is in serious trouble—but if you notice at least a few of them, you’re likely right to be concerned. If it seems like your struggling, try not to get depressed about the situation: Just keep doing your job to the best of your ability, and focus on lining up new opportunities. BM
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mall and medium-sized businesses are expected to be the major beneficiaries of a U.S $60 million (JA$4.8 billion) Inter-American Development Bank loan to Jamaica announced recently. The 20-year-loan is expected to help those enterprises “adversely affected by the current framework for doing business and accessing finance; the informal sector that lacks incentives for participation in Jamaica’s formal economy; and individual entrepreneurs that benefit with direct access to finance,” according to a recent IDB statement. The loan is to finance the third phase of a program to support Jamaica’s “macroeconomic sustainability, continue implementation of a national competitiveness framework, simplify tax administration, reduce the government’s budget support for state-owned enterprises, improve the private sector’s access to financial markets, and strengthen land property rights,” according to the IDB news release. The importance of the loan package lies in the larger context of major policy reforms that need to be made in the Jamaican economy, according to Therese Turner-Jones, IDB in-country representative.
of SMEs, to see if a business is viable enough to lend money to it. “Imagine if you can’t do any credit differentiation between borrowers. That is huge,” Turner-Jones said. This initiative has been in the works for many years, but it got derailed in 2010 when the IMF program got off track. “Now it got back on track,” she said. It’s part of a two-loan approach that addresses the issues of fiscal sustainability and improving the Jamaican business climate. According to the World Bank, Jamaica is ranked 90th out of 185 countries when it came to doing business in 2013. The top three obstacles to doing business in Jamaica, according to the World Bank, are tax rates, electricity and access to financing. “Jamaica has quite a weak performance. That is an area that needs improvement in order to move up the ranking,” Turner-Jones said. The overall objective of the loan program is to improve competitiveness “by promoting reforms that expand access to credit and reduce distortions in Jamaica’s tax system, reduce Jamaican Government participation in inefficient enterprises and projects,
The government of Jamaica did a lot of reform in terms of preparing for the approval of the loan, she said. For example, there has been legislation dealing with the “super form-” - so now instead of 12 or 16 forms to register a business now there will be one form to register a business, Turner-Jones said. Among the other key reforms are expedited land titling and reducing registration and land titling costs. A major piece of the reforms is the creation of a credit bureau to determine the credit worthiness
Therese Turner-Jones, IDB in-country representative.
and lower business costs through more efficient land titling and registration.” “This is a big milestone for Jamaica in terms of improving the business environment and the business climate,” Turner-Jones said. “Jamaica is a very big economy in terms of the rest of the region. What happens in Jamaica, whether it’s reform, has repercussions for the rest of the region. We hope the other countries can take note.” Similar reforms are overdue in the Caribbean region, which is lagging behind in growth since the 2008 economic crisis, Turner-Jones said.
“The Caribbean has not pulled itself out of the crisis. The IDB is trying to identify the real impediments to growth, whether they are structural,” she added. “We are trying to deal with tax reform and government regulation, vis a vis trying to make these countries more attractive not just for foreign investors but for local investors as well.” The loan has a 5.5 -year grace period and an interest rate based on LIBOR (London Interbank Offered Rate, the rate at which banks can borrow from other banks). The program will run by the Planning Institute of Jamaica, an agency in the Jamaican Ministry of Finance and Planning.
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ustomer service is emerging as the new battleground for LIME and Digicel.
Jamaican telecom consumers have grumbled for years about lousy service. And for years, the Office of Utilities Regulation’s (OUR) Consumer Affairs Unit (CAU) has kept track of those complaints. The agency’s Quarterly Performance Report showed it fielded 833 contacts for the third quarter ending September 2013. This figure represents the highest number of contacts received by the unit when compared with the two previous quarters in 2013. The unit processed 577 contacts during the first quarter (JanuaryMarch), and processed 527 contacts from April to June. Of the 833 contacts received during the third quarter, 6 per cent were for Digicel and 9 per cent were for LIME, while 4 per cent related to Flow Jamaica. In addition to queries related to billing, Digicel and LIME customers expressed concern about the poor
customer service they have been experiencing recently. Digicel customers report that most of the time they do not get to speak to a customer service agent when they call the 100-number, which is designated for customer contact. LIME customers said they had difficulty contacting the company’s customer service department. Customers also complained about lengthy delays in getting responses to their queries. But industry economics may have finally shifted in the customers’ favor. Cellphones are becoming ubiquitous. That means new customers, especially smartphone users, are harder to find. New customers now comprise a smaller percentage of the telecoms overall subscriber accounts. Of the reported nearly 2.8 million Jamaicans who own cellphones, it’s unclear how many are considered “free agents,” that is, those not bound by contracts. The impending introduction of number portability will also force carriers to work harder to keep customers
LIME Jamaica Chief Executive Officer Garry Sinclair
loyal. LIME Jamaica CEO Garry Sinclair reported that at least 40,000 new mobile and 1,000 broadband subscribers were added every month since June 2013, fueling his company’s growth. Consumers reportedly flocked to LIME’s mobile network in its first quarter ending June 2013, but the company still recorded an $808-million net loss, more than double year-earlier levels. The telecom’s mobile subscriber base however jumped nearly onequarter as rates were slashed by two-thirds in early June as part of a marketing campaign facilitated
“I process a ton of customer complaints. You know what customer complaints are? They’re gold dust. If they are complaining, they’re telling you,” . Darren Entwistle, CEO of Telus Corp.
Digicel Jamaica Chief Executive Officer, Barry O’Brien
by regulatory rate cuts. While Lime Jamaica suffered a net loss of more than $4.9 billion in fiscal year 2013, Sinclair is predicting operating profits to grow to $2.6 billion for this financial year ending in March 2014.
customer complaints are? They’re gold dust. If they are complaining, they’re telling you,” Entwistle said. “They’re giving you the recipe; the blueprint for getting it right … What’s bugging one client is bugging hundreds of clients.”
Given market realities in Jamaica, around the Caribbean and globally, analysts expect that in 2014 there will be an accelerated shift in strategic focus from customer acquisition to customer retention – keeping customers as opposed to trying to sign up new ones. Telecoms will be paying closer attention to their “churn” rates, which is a key metric that reflects how many customers leave each month.
And it’s less expensive to keep existing customers than to find new ones, according to Robert W. Bruce, president of communications for Rogers Communications in Toronto, Canada. “In theory, it doesn’t cost you anything to keep your customers,” he explained.
Telecom leaders around the world are spending more time and resources evaluating customer complaints. Darren Entwistle, chief executive officer of Canadian telecom, Telus Corp., recently lauded the value of cataloguing customer complaints. “I process a ton of customer complaints. You know what
For that reason, veteran Canadian telecom executive John Watson warns that companies must take their customers seriously. “Customers have long memories and you have to treat customers well because they don’t forget,” he said. “There is a moment of truth and moments of truth really matter.”BM
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or many couples their marriage extends into the workplace.
According to a Wall Street Journal article, about a third of all family businesses are husband-and-wife teams. While some sweethearts can handle the dual pressure of building a relationship and a company, many others warn it’s a difficult path. With the two of them now working together, “it made our family feel more vulnerable—we had all our eggs in one basket.” The constant interaction, the strain of juggling work and personal life, and the trials of entrepreneurship— especially in a difficult economy—can take a toll. It also doesn’t help if the two have a personality conflict.
“She just bosses me around in everything she does,” says one copreneur, whom his wife describes as a patient, laid-back man. In response his wife admits,
“I had to play my role as CEO…but I can cross the line. It can be emasculating.” Lots of couples don’t see eye to eye or can’t handle the stress, financial risks or sheer amount of time that “copreneurs” must spend together. The authors suggest that the secret to making such “copreneurs” work is to have a good marriage in the first place. “Many couples say the complementary personalities that brought them together make them logical business partners. In the best cases, couples are “truly so in sync with one another that the business becomes an extension of the relationship they have with one another. This according to Glenn Muske, a small-business specialist at North Dakota State University who has studied copreneurs for nearly 15 years. In the worst cases he’s seen, the stress “took down the business and it took down the marital relationship. I don’t think everyone is cut out to do it.” One couple interviewed likened running a business together to having a child. When she was about to give birth to their first child, “I was exhausted, he was exhausted. Running a business is a lot like that.” Six Tips for copreneurship 1. Trust, communication and commitment vital. 2. Clearly defined roles within the company as at home. 3. See the business as a “way of life” not your life. 4. A prenuptial agreement helps. 5. Assess your shared goals, values and beliefs 6. A good marriage is the foundation of the business partnership
Next to marriage, a business partnership is the most intense and collaborative-dependent and interdependent relationship an Entrepreneur and business owner can have. And, like marriages, over 50% of them will fail. That’s a staggering statistic by any measurement. If you’re part of a business partnership, you expect to have discussions that end in decisions rather than arguments with your partner and where communication is not a barrier but rather a tool for success. However these are major issues that result in the demise of many potentially successful partnerships. So if you’re considering a partnership and aren’t sure how to determine if there is a fit, and how to make sure you have shared values, beliefs, goals before you enter into the partnership what do you need to do and look out for. Like many high profile marriages, where the stakes are high in the event of failure and separation, the partners agree on what will happen if and when this comes to an end in the form of a pre nuptial agreement or prenup. In this way everybody knows before going in what’s going to happen going out and what happens in between. Muske however concludes that those couples who succeed as business partners are those that bring trust, communication and commitment to the table. They have clearly defined roles within the company and consider the business a “way of life” that gives them more flexibility as a family, he says. What do you think? Follow this link and read the tales of three couples who have run businesses together, with mixed results. All say their stories illustrate the reality of copreneurship…for better or for worse. http://online.wsj.com/article/SB10001424052748 703959104576082623914872658.html?mod=hp_ jrmodule See also: http://www.businessuiteonline. com/2013/07/02/7-points-to-include-in-yourbusiness-partnership-prenup/
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n 2001, Dolphin Cove began as a modest attraction - a man, his wife and four dolphins in a three-acre marine park across from Dunn’s River Falls in Ocho Rios, Jamaica. Stafford Burrowes and his wife, Marilyn, started with a vision and industry. In the last 13 years, Dolphin Cove has grown into what the Jamaica Observer called one of the nation’s biggest entrepreneurial success stories, boasting developments across Jamaica and in newer projects in St. Lucia and the Cayman Islands. Along the way, the Burrowes have
Stafford Burrowes, Chairman and CEO, Dolphin Cove
entrepreneurs and making millionaires,” said Sushil Jain, a consultant and a non-executive director of Honey Bun and other boards. Jain pointed to the success of Access Financials and Lasco group companies as recent examples. Access Financial Services Ltd was founded by Marcus James in 2000. He took the company public in 2009. Access disburses personal and business loans at its network of 14 branches across Jamaica. Marcus James, CEO, Access Financial Services Ltd.
found a lucrative way to grow. In 2010, they took their enterprise public to raise JA$240 million in capital to take advantage of the projected growth in Jamaica tourism. From an initial offering of $3 a share, the price of Dolphin Cove shares has almost tripled at $8.39 a share. And Stafford Burrowes as the owner of 274,949,000 shares of his company’s stock, his stake in the company is valued at more than J$2,306,822,110.00 or US$21,660,301.50, making Burrowes among the wealthiest of Jamaicans. And his wealth continues to grow. At the end of the 2013 financial year, shareholders pocketed dividends of 40 cents per share - 10 cents per quarter. For Burrowes with his massive shareholding, that’s a jackpot of about JA$110 million or US$1.37 million. That’s nothing to sneeze at. It’s hard to begrudge him. When so many directors reap huge salaries while their companies sputter, that has not been the case for Burrowes and Dolphin Cove. The company registered net profits of $248,392,978 in 2013, up 41 percent from 2012. And it now seems that Burrowes is going get even richer as the Board of Directors of Dolphin Cove Limited has declared an interim dividend of $0.15 per share payable on April 9, 2014 to shareholders on record as at March 21, 2014. Based on this, Burrowes is expected to walk away with JA$41.2M or about US$515,000.
Lascelles Chin started business with £175.00 savings transformed importing black pepper and grew into a major conglomerate worth billions. LASCO Group, founded by him in 1988, comprises manufacturing and distribution divisions that handle “high quality, nutritious products,” including cereals, beverage, meats, personal care items, household products and pharmaceuticals. LASCO also has a financial services division. When the company went public on September 15, 2010, Chin was trying to raise JA$415 million. Within three minutes, the IPO was “oversubscribed to the tune of JA$950 million.” Jain also lauded the late Desmond Blades, former chairman of the manufacturer Seprod, as an example how one person’s wealth grew as his company’s fortunes changed. At one point before his death, Blades owned a 40 percent stake in the billion-dollar revenue manufacturer. “It is unfortunate that many businesses and individuals have not understood the benefits and have not taken advantage of the JSE,” Jain said. Many Jamaican investors opt for the safer bet that comes with the high interest rates paid by Government of Jamaica bonds. “For whatever reasons, many Jamaicans are not so excited about the stock market,” Jain said. “It is
Stafford Burrowes is just one of a group of super managing directors who have tied their wealth to the success of their companies and have watched their bets in the Jamaica Stock Exchange pay off handsomely. “It has been very successful in creating wealth for
Lascelles Chin, CEO and Chairman, LASCO
- LASCO Manufacturing 124,442,849 shares at $1.20 per share value JA$149.3 million or US$1.87 million. - In LASCO Financial Services, Chin owns 37,873,148 shares valued at $1.23 per share gives him a stake of JA$46.6 million or US$582,299.65.
Keith Duncan, Group CEO, JMMB Group
unfortunate that they do not realize how much they have missed.” There is a growing list of managing directors who have not missed their opportunity. - Herbert and Michelle Chong, co founder Chairman and CEO respectively of Honey Bun, each owns 37.5 million shares of the bakery products company, which was trading at J$3.19 as of February 2014. That puts the Chongs combined worth in the company at J$234 million or US$2.92 million. - Douglas Orane, chairman of GraceKennedy, owns 7,092,534 shares each worth $58.19 per share, valued at JS$412.7 million or US$3.87 million - Donald G. Wehby, group chief executive officer of GraceKennedy, owns 2,920,646 shares valued that about JA$170 million or US$2.1 million. - Group Chief Executive Officer of JMMB Keith P. Duncan owns 110,912,781 shares valued at JA$847.3 million or about US$7.95 million. - Donna Duncan Scott owns 109,845,381 shares of JMMB worth JA$839.2 million or US$7.9 million. - Access Financial Services’ founder and CEO Marcus James owns 112,421,260 shares, valued at $9.10 per share, giving him an estimated stake in the company of JA$1 billion or US$12.8 million. - Lascelles Chin, founder of the LASCO Group, can boast about being first entrepreneur to have a triple listing on the Jamaica Stock Exchange. His stake in the three companies is estimated at about JA$14.5 billion or US$18.1 million.
- Chin owns 1,019,337,778.00 LASCO Distribution shares at $1.23 per share with a total net worth in the company estimated at JA$1.25 billion or US$15.7 million. The rewards of taking a company public come with huge responsibilities. The managing directors of a company that has gone public must be aware of the
Sushil Jain’s advice to managing directors with skin in the game: 1. Avoid hubris, 2. Seek advice 3. Do not take things for granted 4. Don’t postpone the unpleasant decisions 5. Adapt to the changing circumstances 6. Surround yourself with strong, independent directors – not yes-men 7. Establish realistic targets for people and hold them accountable. 8. Be transparent. 9. Remember the customers 10. Provide them genuinely good products and services, etc.
required by regulatory agencies,” according to the JSE.
Don Webhy, Group CEO, GraceKennedy
obligations and constraints of running the company and adopt a suitable management style. Corporate “business decisions can no longer be selfserving and managers must always be reminded of their fiduciary responsibilities,” warned the Jamaica Stock Exchange in one of its publications. Some argue that when a managing director is heavily invested in his company, he has the most to gain during good times and the most to lose when things go wrong. That burden usually prompts better decision-making. Others argue that a person who founds a company should rightfully profit from his or her efforts. But ownership of a public company also means giving up the right to keep decisions made behind closed doors private. Once the founder decides to take his company public and shares the ownership, the corporation is “obligated to provide timely, continuous reporting of corporate information as
“Corporate business decisions can no longer be self-serving and managers must always be reminded of their fiduciary responsibilities.” Jamaica Stock Exchange
“There are definite differences in the responsibilities of directors of a public company and those of a private company. In a public company the responsibility to the shareholders takes precedence. The directors are entrusted with managing the affairs of the company in the best interest of the shareholders and are therefore accountable to them. Board members not directly involved in the daily operations can give advice and provide objectivity and balance to management and lend credibility to the company’s reputation,” according to the Jamaica Stock Exchange’s publication about going public. Having directors with major shareholdings has its benefits, Jain explained. High stakes in the results usually come with high commitment. However, directors enriched by massive shareholding may be tempted to throw their weight around and ignore the views of other directors and managers, Jain warned. Those kinds of leaders usually surround themselves with people who won’t stand up to them. “Other directors may tend to become yes-men and lose their independence,” Jain explained, “the limitations of their vision, knowledge and skills may affect the growth of the business organization.” So far Burrowes, Chong, Chin, Orane and the others seem to have found the right formula. Its main hub is Point Lucea, Hanover, Jamaica where it offers dolphin programs and ancillary operations, It also owns a unit called Too Cool Ltd in the Cayman Islands. Dolphin Cove started Cheshire Hall Ltd in St. Lucia in June 2012. The property is being developed for a tourist attraction.
Michelle Chong, Chief Executive Officer Honey Bun
broad FMCG experience in the Asian, Caribbean and Jamaican marketplaces at both the in-market and regional levels. Previous roles include: • Vice President Marketing – Lime • Director of Marketing & Innovation – Red Stripe • Regional Marketing Development Manager – Diageo, Singapore • Demand Planning & Reporting Manager – Red Stripe
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arketing may have been their realm as the Chief Marketing Officer (CMO) of some of Jamaica’s biggest companies, but they knew that ultimately marketing decisions are often made by senior executives above them. And for many marketers, their position is merely one stop on a path leading to general management and for some CMO’s brave enough to venture out on their own, entrepreneurship and running their own businesses. But how does a CMO like Wayne Lawrence transition to entrepreneurship, running their own business, becoming the president and CEO, shifting to general management. To get a better sense of the implications of that step, Businessuite Magazine recently asked one senior marketer, Wayne Lawrence, founder and managing Director of DenWay Consulting Services, who has made the move, about his experience. Lawrence is an accomplished senior marketing executive with extensive expertise in marketing communications, brand management, consumer and customer insights, experiential and trade activations as well as innovation commercialization. He also has
Businessuite Magazine: Why do you want it? Why do you want to run your own business? Wayne Lawrence: I have a passion for marketing and what it can do for people and companies when done right. I believe that I can do much more, touch more companies and people and get them to deliver results that they didn’t even know they had in them through DenWay vs a single marketing role. Businessuite Magazine: Was this a natural progression in your career, and do you think that it’s a natural progression for everybody? Wayne Lawrence: It was a somewhat natural progression for me. I always had the dream to run a business that allowed me to focus on my passion for building brands and teaching others how to do it well. Businessuite Magazine: What about your CMO role prepared you for this? Wayne Lawrence: As a marketing consultant my roles and experiences have prepared me to not only be an expert in my field but how to lead people and get the best out of them. It helped me to focus on finding solutions vs lamenting the problem. It helped me understand how to define a product and how to unlock the consumer insights that will drive growth. Businessuite Magazine: What are the advantages of marketing over other backgrounds in this regard?
Wayne Lawrence: I think marketers are generally an optimistic bunch of people. We are always looked on to find the solution and move things forward. This trait will become even more important as an entrepreneur. Marketers also understand that regardless of the business, you need to answer a few key questions to be successful. Who am I? What do I do? Why does it matter? How can I do it better than anyone else? Businessuite Magazine: Would you ever go back to a pure marketing role in a corporation as an employee? Wayne Lawrence: While that isn’t my intention, I never say never. If an opportunity with the right company and the right role presented itself I would consider it. However, my wish list of things that would make me happy in that role has grown considerable. It’s not about the money; it’s about the satisfaction and fulfillment that that role would need to offer. Businessuite Magazine: Can you ever let go of the marketing role. And how is it helping you now? Wayne Lawrence: I think I will always be a marketer. I will always look at things from a certain perspective. I will always look at issues from the customers’ perspective, try to figure out what drives them and how I can influence their behavior in line with my objectives. So while I am not wedded to the role of marketing, my marketing experience and perspective shape how I think and behave in all business situations. It helps me most now because it forces me to always think from an outside in perspective. That is appreciating what the customer is looking for and aligning that to what you want to accomplish as a business to get the best results. Businessuite Magazine: It is often said that marketers are poor financial managers, with a focus on spending and not growing profitability. Do you agree and how do you manage the financial aspect of your business now? Wayne Lawrence: The behavior of marketers has created a perception that marketing is like an arts and craft function that holds parties, takes pictures, print posters and at best only drive short term sales. The credible and successful marketer of today must
know the impact of each marketing investment, accurately forecast results, not just spending, and make hard business cases for spending on marketing investment. The financial aspects of my business is managed on the basis of what investments need to be made to get us closer to our strategic objectives and how will we track, measure and adjust performance. This principle holds true for (things such) as marketing investments. Businessuite Magazine: What are the key lessons learned in your startup about General Management? Wayne Lawrence: I have five key lessons for this. 1. Start with a clear understanding of your aspiration and vision with regards to the business you plan to engage in. It has to be about more than just the money, it has to be a passion because it will become a driving force in your life. 2. Think about how your business fits into the landscape and how it will set itself apart from the others and win the customer. 3. Understand the capabilities and systems that you need to have in place to win and the fact that you may not have them. 4. Don’t be wedded to any one tactic, project or product. You need to be able to make the hard decision. 5. Ultimately passion and determination must drive you. Businessuite Magazine: What’s your advice for a marketer or any other executive moving into running their own business and general management? Wayne Lawrence: Again I have five key lessons for this. 1. As above. 2. Find mentors and advisors who can objectively guide you. 3. Form alliances with others who can help make you better. 4. Never stop learning. 5. Your greatest resource is your people.
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he foundation of communication is feedback. As human beings we engage in conversations constantly with customers, co-workers, suppliers and partners. The people with whom we interact expect feedback either face-to-face, over the telephone or via email. As a customer service practitioner – feedback is essential in order to provide quality customer service. Customers usually get agitated when they are not communicated with in a timely manner. That’s all one way of looking at feedback. How about deliberately and intentionally gathering feedback from your customer in order to grow your business? If you can make it easy for your customers to provide feedback, use their feedback to find out what’s important to them and focus your efforts on meeting and/or exceeding those needs. You’ll get the benefits of their future patronage and add many new customers. Feedback is absolutely vital to business success. Here are a few suggestions for developing a feedback strategy that will increase your business’ customer focus: 1. “Walk in the customer’s
Yanique Grant, Customer Certified Service Consultant, PTOS Ltd
shoes” – As a business owner you should know and be aware of what it is like to experience your organization as a customer. Mystery shop your own business or get a friend to do it. Even better, employ a professional organization to provide a detailed snapshot of his or her experience over a period of time. You can even host a focus group. 2. “Make it easy for customers to give feedback” – make sure all your touch points with the
customer have an avenue where feedback can be provided. On a website, you should have a feedback form that will allow the customer to provide a detailed description of their experience. Share your own email address and a telephone number where customers can easily access you for feedback. 3. “Be transparent” – Ensure that the feedback you receive from your customers is actually being used. Many customers shy away
Your customers drive the success of your business, the more satisfied your customers are, the more likely they are to be loyal and patronize your business over and over. from giving feedback because they believe no changes will result from their complaints or requests. Consider including some of the feedback from your customers on your website on a regular basis, ensure the data is not dated – this will allow what customers are saying about your business “good” and “bad” to be available. 4. “Implement a complaint management system” - Use the feedback that your receive from customers that have complaints as an opportunity. Have a structured system in place where customers complaints that have been resolved are included in the pool when gathering feedback. Phone up a customer whose complaint you resolved some time ago and ask him how he felt about the way your organization dealt with it. “How did the complaint experience affect their perceptions of your company?” 5. “Save Money on Surveys” – Use on-line web-based surveys and save money. Calculate your sample size, deploy and analyze the results of an email survey. You can use free survey sites such as freeonlinesurveys. com, surveymonkey.com and kwiksurveys.com. Customers feel very good when you show that you care by sending a survey to find out how they feel about the
product or service provided.
customers on an on-going basis.
And when you do survey your customers, use the findings from your snapshot exercise to determine the questions you ask. The snapshot will have given you a list of ‘moments of truth’ - and they could be anything from first impressions, via the ordering process, to your approach to invoicing or handling problems - so design the survey to let you know which of these moments of truth are most important, how well your company delivers them - and ultimately how likely they are to recommend you?
Yanique W. A. Grant Customer Certified Service Consultant Professional Training & Occupational Services Ltd International Channel Partner for Service Quality Institute (SQI) Professional Training & Occupational Services Ltd 22G Old Hope Road, Oxford Place, Suite 10 Kingston 5 Jamaica Tel: (876) 908-2310 Fax: (876) 754-4474 info@ptosinc.com
6. “Measure It” - Once you have your results, look at the links between the ratings given to each ‘moment of truth’ and compare them with the resulting advocacy scores. You’re looking to identify which components of your customer’s experience correlate most strongly to their overall perceptions of your organization. Your customers drive the success of your business, the more satisfied your customers are, the more likely they are to be loyal and patronize your business over and over. Don’t be shy and afraid to hear what people really think about your company, your brand, your products and/or services. Be Bold and gather data from