I
f you were to follow the typical Jamaican executive through his work life, you would discover that he is quite unlike what managers are paid to be … to be decision makers. While this is not unique to Jamaican managers, the overwhelming evidence of this tendency in Jamaica makes the phenomenon worthy of specific attention. Before we get too critical of indecisiveness among our managers, I must point out that not to make a decision is itself a decision. It has been demonstrated with convincing regularity however that this approach to decision making can have devastating consequences on the organization. At a minimum, management indecisiveness is known to negatively impact individual and team morale and could lead to organizational paralysis. The guilty indecisive Jamaican executive knows exactly what he is doing by waiting, deferring and not providing an answer. The main excuse is that he needs multiple inputs and opinions as he seeks to mitigate all risks associated with the decision. He knows that as he waits circumstances are likely to overtake the decision process. At that point, there is no longer a decision to be made as the opportunity is loss or an employee in question simply resigns. In short, not making a decision is actually committing to a certain path of action and doing so in the worst possible way. In effect, indecision is like making the decision to leave the field while the game is still being played. In so doing you have surrendered your ability to affect the outcome. When this is done repeatedly it leads to randomness and organizational disorder. At a minimum good people will leave the organization to join more decisive leadership. What about Jamaica or Jamaican companies
that predisposes managers to being indecisive? There is clear evidence that the culture in many Jamaica companies actually promotes indecision. Those who make wrong decisions are lambasted and severely penalized. Managers therefore in an attempt to avoid being evaluated in relation to the decisions they make hide behind their indecision. Good decisive managers know that difficult situations don’t disappear. They just get worst. If you have a bad employee causing problems, delaying the hard decision to give him the boot just increases the chances of him affecting those around him. If your website is losing you money, delaying the decision to pull the pin will just cost you even more. Decide early and act swiftly. So what’s the worst that can happen if you make the wrong decision? The fact that you acted at the time means it was the right decision given the information that you had. This means it only became a bad decision when unknowns surfaced, or when something changed. When that happens, you simply make a new decision. This may mean that you alter what you were doing slightly or it may be that you scrap it in favour of a new path. Either way, by making a decision you forced an outcome. If you hadn’t acted, those unknowns would still be unknowns. BM Ronnie Sutherland is proven visionary and strategic thinker that successfully formulates and execute business strategies that yield targeted growth in market share and profits. An expert in enhancing profitability; developing employees motivational initiatives, and leading the development of new market segments. Very knowledgeable of broadcasting regulations, manufacturing processes, distribution logistics and marketing operation. Dedicated to maintaining a reputation built on quality, service, and uncompromising ethics.
M
r. Chairman, we recognise that Guyana, a founding member of CDB, is not being left behind in the continent’s economic awakening. Indeed, in recent times, Guyana has recorded consistently high economic growth rates and impressive improvements in many of its key indicators of social and economic performance.
For these reasons, this occasion represents an ideal setting for us to examine the nexus between competitiveness and economic growth, and the role that energy plays in this mix. As CDB’s borrowing member countries (BMCs) move to strengthen trade with South America, Guyana occupies a strategic position as a gateway to this great continent. But, if our aspiration to end poverty in our Region and to provide high quality jobs for our young people is to be realised; and if the dream of our founding fathers for a just and prosperous Caribbean is to be fulfilled, then our industries must be equipped and facilitated to compete in South and North America. They must be equally prepared to take advantage of the opportunities being offered through the European Economic Partnership Agreement; the hopefully imminent Caribbean-Canada Trade Agreement; and the burgeoning markets of the middle and far eastern countries. When we see new export-focused industries taking firm root in our economies, then, and only then, can we be assured that the right foundation for the sustainable prosperity of our people has been laid. Recently, we have been talking a lot about economic growth, which is an essential element in the prosperity puzzle. But for economic growth to be sustainable, it must be undergirded by competitiveness, which has to be global in its outlook and in its reach.
Three Propositions In Relation To Competitiveness
This morning, I invite you to consider three propositions in relation to competitiveness. First, Caribbean countries have a competitiveness problem; and it is at the root of our difficulty in achieving the high rates of economic growth which we need to be able to provide the standard of living to which our people aspire. Second, the high price of electricity is a major source of our region’s uncompetitiveness, and of our vulnerability to external shocks. Third, we can increase our energy independence substantially; reduce the cost of energy; and in the process, create a whole new industry based on a new paradigm. Lack Of Competitiveness Constrains Growth I will not detain you for too long, on my first proposition that lack of competitiveness is our biggest constraint to growth. High rates of economic growth have eluded the majority of CDB’s BMCs, for a long time. Our Region’s economic expansion of 2 percent (%) per annum over the past decade has been consistently below the global rate of 3.8%; lower than the 4% average for other Small Islands Developing States (SIDS); and way below the average of 6% for emerging and developing countries. Lack of competitiveness is our biggest constraint to growth. Our anemic growth performance is further manifested in widening fiscal imbalances; high debt ratios; and declining levels of foreign exchange reserves. According to two reputable surveys with which most of you are familiar - The World Bank’s “Doing
Business” Survey and the World Economic Forum’s Global Competitiveness Index – the Caribbean’s ranking does not compare well with other countries in the area of competitiveness. For example, out of 189 countries surveyed for the Doing Business index, the average ranking for the Caribbean is 100. The rankings confirm that our BMCs will have difficulty maintaining existing markets and penetrating new ones unless there is radical transformation in the way we do business. Importantly, the two surveys highlight several areas which we need to address. These include inadequate transportation, telecommunication and logistics infrastructure; insufficient access to affordable credit; bureaucratic red-tape; low productivity; and high energy costs. So, the inability to compete stands out as a major challenge for our Region.
High Energy Prices And Reliance - Primary Sources Of Uncompetitiveness And External Vulnerability This brings me to my second proposition. We cannot transform the Caribbean’s competitiveness landscape without a frontal attack on energy costs and the generally poor state of our electricity infrastructure. Most people in this audience will agree that electricity costs in our region are very high. In general, households pay between US 0.30 cents and US 0.40 cents per kilowatt hour (kWh). “Why are electricity prices in the Caribbean so high?” Prices also vary significantly from country to country. Household tariffs in 2012 ranged from a high of approximately US 0.48 cents per kWh in Dominica and Montserrat to a low of US 0.25
cents per kWh in Belize where the energy mix includes some renewables, namely hydro and biomass. Among the BMCs, the outliers are households in fossil-fuel-endowed Suriname and Trinidad and Tobago, where rates were under US 0.07 cents per kWh. These rates are approximately four times the average rates in North America. A similar situation obtains for commercial and industrial rates. An enterprise survey conducted by the World Bank in 2010 found that at least 30 (%) of Caribbean firms identified electricity costs as a major constraint to doing business. So, we are forced to ask, “Why are electricity prices in the Caribbean so high?” First, the combination of high diesel and heavy fuel oil costs and the inherent inefficiency of diesel technology, which accounts for the majority of the generation in BMCs, are the principal contributors to these high electricity prices. Further, these fuel prices are subject to the volatility of international oil markets, which are highly responsive to shifts in geo-politics. Second, small market size and the absence of economies of scale in the generation of electricity compound the problem. At least 30 (%) of Caribbean firms identified electricity costs as a major constraint to doing business. Third, most generation facilities in the Caribbean are approaching the end of their useful life, many being more than 20 years old. These facilities, therefore, do not benefit from the efficiencies inherent in the new technologies built into generators of more recent vintage. The macro-economic impact of the high cost of imported fuel and the consequential high electricity price are reflected in deteriorating performance indicators in most BMCs. High levels of debt to GDP and depletion of foreign reserves are directly related to this dependence on imported oil. High electricity prices erode
thermal reserves for export to neighbouring countries. Evolving renewable energy technology and recent price reductions can potentially bring about a transformation in the energy landscape to the extent that all BMCs can now harness their available resources. the competitiveness of the regional economies and, therefore, their ability to earn the required foreign exchange to pay for imports, including oil. Unless, therefore, we can reduce our dependency on imported fossil fuels, and unless we can substantially reduce energy costs, we will not succeed in improving our competitiveness and reducing our vulnerability to external shocks. There has been a perception that Trinidad and Tobago is the only energy-rich country in the Caribbean. The Caribbean Is Not Energy Poor This brings me to my final proposition. There has been a perception that Trinidad and Tobago is the only energy-rich country in the Caribbean. However, ladies and gentlemen, today we now know that our other BMCs are definitely not energy poor. Guyana alone has enough renewable energy potential, mainly in the form of hydro-power to meet all of its electricity requirements for the foreseeable future; supply all of the needs of immediate neighbours, Grenada and Trinidad and Tobago; and still have enough left over to sell to neighbouring Brazil. The situation is similar for Suriname . Additionally, Dominica, Grenada, Montserrat, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines have great potential to generate their entire base-load electricity requirements from geo-thermal sources. Although their domestic markets are quite small, technological advances in the development of undersea transmission cables would allow these countries to exploit their relatively large geo-
For example, Jamaica can meet up to 30% of its electricity needs from renewable sources such as wind, solar, mini-hydro and waste-to-energy. According to a study by the Worldwatch Institute in the USA, Jamaica’s annual average solar insulation ranges from 5 to 8 kilowatt hours per square meter per day. In comparison, Germany, the global leader in solar photovoltaic (PV), has only a few locations with a capacity in excess of 3 kilowatt hours per square meter per day. J a m a i c a ’s situation is not unique. All BMCs boast similarly strong solar potential. All of these renewable options have the potential to lower electricity costs, and increase foreign exchange reserves from reduced energy imports. With our considerable potential to enhance regional energy security, save foreign exchange, improve the competitiveness of Caribbean economies; and with falling prices of renewables, including solar energy technologies, what prevents us from taking advantage of the opportunity to create a Shakespeariantype “sea-change” in the Caribbean’s energy landscape? It is my view that the legislative and regulatory environment is a major hindrance to the pursuit of a new energy paradigm for our Region. There are two priority areas for urgent government action.
CARICOM energy ministers have already adopted “net-billing” as a feasible mechanism for “ensuring equitable pricing” One, we need to change the legislative framework, at the national level, in order to facilitate access for renewables by altering the monopoly on generation where this exists in BMCs. Revisions in the framework should ensure equitable pricing for supply from independent power providers or small, distributed renewable generators of electricity. It is noteworthy that CARICOM energy ministers have already adopted “net-billing” as a feasible mechanism for “ensuring equitable pricing”. As a matter of urgency then, all BMCs should follow the lead set by Barbados and Jamaica, which have already enacted the supporting legislation. Two, an appropriate regulatory framework needs to be established for each BMC to ensure that equitable tariffs and rules for optimal performance are in place and to make certain that the interests of consumers, investors and governments are balanced. Given the constraints of market size, and the availability and cost of specialised skills necessary for the effective administration of the regulatory function, it makes sense for a collective approach to be adopted. It is for this reason that CDB welcomes the Eastern Caribbean Energy Regulatory Authority initiative; applauds those OECS countries that have already committed; and looks forward to the full participation by other member countries. I would go so far as to say that such a supranational regulatory body is critical for full and sustainable development of the geothermal potential in the sub-region, to encourage private investment in the sector, and to make interconnectivity a reality. The building of a new energy paradigm must give priority to energy efficiency, which is relatively low-cost and yields a high return on investment with a short payback period.
A successful energy efficiency programme, incorporating appropriate tax incentives, would reduce household expenditure on electricity and other forms of energy, thereby increasing disposable incomes. Businesses, especially the critically important micro, small and medium sized-enterprises (MSMEs), would also see improvements in their efficiency and their competitiveness. Our fight against high energy prices could, potentially, also open the door for the emergence and growth of new non-traditional businesses that promote the use of energy efficiency technologies and services to reduce energy consumption. The growth of industries producing and/or installing solar water heating systems are the most familiar of the new industries that have emerged in our region as a response to high energy prices. In the new energy paradigm, we should expect an expansion in new industries around a range of energy services, and the manufacture and installation of PV and other renewable energy systems and energy saving devices. The new paradigm is integral to the “Green Economy” approach currently under consideration by some BMCs, and is consistent with the CDB’s Climate Resilience Strategy. This morning, I have put three basic propositions on the table: 1. We have a competitiveness problem, which is responsible for our relatively low rates of economic growth; 2. The high price of electricity and our heavy reliance on imported fuels make us vulnerable and are the primary sources of our region’s uncompetitiveness; and 3. We can increase energy independence substantially; reduce the cost of energy; and create a whole new industry based on this new paradigm.
lives of nearly 5,000 citizens. I must share with you the story about the Kwatamang Village in Upper Essequibo, where there was no grid-connected electricity supply; and a couple of manual hand pumps provided the only access to water for residents. Role Of CDB The inevitable question which you must be asking at this stage, ladies and gentlemen is, “What role does CDB play in helping the Region to address the competitiveness challenge and to make the transition to the new energy paradigm?” Promoting poverty reduction through inclusive and environmentally sustainable growth and building resilience to external shocks and natural hazard events underpin all of CDB’s development financing and technical assistance to its BMCs. Within that broad framework, the Bank has been intensifying its focus on renewable energy and energy efficiency. Our flagship programme, the Basic Needs Trust Fund (BNTF), has been a useful mechanism for encouraging the use of renewable energy at the community level. In Guyana, the largest beneficiary of this programme, we have used BNTF successfully to achieve this objective. With its extensive hinterland, its dispersed population, and the consequential challenge of electricity supply, Guyana is ideal for the continued roll-out of renewable energy solutions. Over the last three years, the BNTF Project in Guyana has been including PV components, where relevant, in social infrastructure subprojects. PV systems are often the solution of choice in remote areas where diesel is moved by river transport at relatively high cost. Under BNTF 6, ten sub-projects, which included PV systems, have been completed, for a total installed capacity of 7.3 kilowatts. It is estimated that these 10 sub-projects have changed the
CDB has been creatively using renewable energy solutions to improve the quality of life of the poor. With the inclusion of only 700 watts of PVinstalled capacity in the sub-project design for the operation of a submersible pump, 408 persons – 220 males and 188 females, comprising 65 youth – are now the proud beneficiaries of regular water supply! We are replicating this work in the remaining nine BNTF beneficiary countries, where we have success stories similar to that of the Kwatamang Village. Through the BNTF, therefore, CDB has been creatively using renewable energy solutions to improve the quality of life of the poor. In the private sector, the Bank has also been working with MSMEs, mainly in the OECS countries, to improve their efficiency and their competitiveness. Drawing on the expertise of the Caribbean Technological Consultancy Services Network, we have been assisting MSMEs with the conduct of energy audits, which will inform retrofitting for financing by CDB through local financial intermediaries. The Bank has also implemented a USD1.5 million project through the OECS Secretariat to develop energy efficiency and energy awareness strategies and to support legislative reform in the Eastern Caribbean. Organisationally, a Renewable Energy/ Energy Efficiency Unit has been created, among other things, to prepare a new Energy Sector Policy and Strategy for CDB; develop new financing instruments; and champion the Bank’s interventions in the area. This Unit will
benefit from specialist expertise provided by the Government of Germany.
because electricity prices are like an albatross around our necks.
CDB has financed electricity generation, transmission and distribution facilities in its BMCs virtually since the Bank’s inception. We will continue to do so, including collaborating with development partners.
Our leaders of the 1930s - 1960s fought tirelessly for our political independence. As today’s leaders, we must move to secure all aspects of our nationhood; and one critical area is energy security.
Many of the generating plants are obsolete and need to be replaced by a mix of technologies comprising renewables and natural gas.
We must take full responsibility and ownership by addressing decisively the competitiveness and energy handicaps which threaten us now. If they go unfixed, generations to come will be affected.
It is estimated that as much as USD10 billion investment in new generation capacity could be required within the medium term if the region’s electric utilities are to benefit from efficiencies associated with the new technologies and for them to maintain adequate reliability. To radically transform the energy generation landscape, the investment requirements could exceed USD20 billion. The majority of our BMCs are caught in a vortex of low growth and stagnant or declining living standards. Conclusion In closing, let me leave you with some final thoughts. The majority of our BMCs are caught in a vortex of low growth and stagnant or declining living standards. In contrast, many of the SIDS are out-performing us; and the newly emerging countries of Africa, Asia, and South America are either catching us or rapidly leaving us behind. We are very good at analysis; but we need to become excellent at praxis! We know what needs to be done; and we just need to do it! The energy challenge is not a new one! We have known about it for at least 40 years, since the first oil shock in 1973. What is clearer today is that we do not need to continue as helpless victims of the vagaries of the international oil markets. Nor do we have to remain uncompetitive
It is not an impossible dream for small states like ours to compete successfully on the international stage. If you believe that I indulge in tiresome hubris, I urge you to speak to Grenada’s Kirani James; to Kim Collins of St. Kitts and Nevis; to Hasely Crawford and Wendell Mottley of Trinidad and Tobago; and to Usain Bolt and Shelley-Anne FraserPryce of Jamaica. Indeed, speak to the vast number of Caribbean athletes, past and present, who have conquered the world of track and field by focusing on doing the things that make them world class! The Caribbean has faced, and it has overcome many obstacles in the past. If we are to triumph over today’s competitiveness and energy challenges, we would do well to heed the counsel of Saint Francis of Assisi to “start by doing what’s necessary; then do what’s possible; and suddenly, we are doing the impossible!” Mr. Chairman, I thank you! Extracted from a presentation entitled “Unlocking Opportunities For Competitiveness And Growth The Role Of Energy” by Dr. Wm. Warren Smith President Caribbean Development Bank at the Forty-Fourth Annual Meeting of The Board of Governors Guyana May 28 and 29, 2014.
I
t is often said that decisions are at the heart of a leader’s success, and at times, there are critical moments when decision making can be difficult, perplexing, and nerve-racking. However, the boldest decisions are the safest. Any business leader, company executive or entrepreneur will tell you that nothing will test your leadership mettle more than your ability to make decisions. You cannot separate leadership from decision making, for like it or not, they are inexorably linked. Simply put, the outcome of a leader’s choices
is the very slow pace of decision-making and in many cases no decision making at all. Executives and lower level managers either procrastinate thus allowing time to lapse before making the decision or in some cases, they just do not have the authority to make the decision but will not say so. As one entrepreneur lamented to this writer “You can go bankrupt waiting for a decision from some companies.” The cost implications of these types of decision-making behaviours are very high and this is evidenced in both the public and private sectors. The question is why and is this a Jamaican or
and decisions can, and usually will, make or break him. The fact of the matter is that senior executives who rise to the C-suite do so largely because of their ability to consistently make sound decisions. What most persons fail to realize is that while it may take years of solid decision making to reach the boardroom, it often only takes one bad decision to fall from the ‘ivory tower’. Although you may wish it wasn’t so, when it comes to being a leader you’re really only as good as your last decision. It is generally felt that a major factor impacting business growth and development in Jamaica
“Somewhere along the line of development we discover what we really are, and then we make our real decision for which we are responsible. Make that decision primarily for yourself because you can never really live anyone else’s life.”- Eleanor Roosevelt
Caribbean thing?
decision for them.
Jamaican Entrepreneur and Author Alrick Robinson recently commenting on the matter said, ”I don’t think it is surprising and I think it is more widespread than may be perceived. What I am not sure of, is how much it is a Jamaican-skewed phenomenon. There are so many things that contribute to procrastination - insecurity, lack of resources, fear of failure, liking the status quo, inability to process the information that is being presented, lack of support...etc. So, I know it is a big problem, but is it really “Jamaican”? I don’t think so”
Instead of taking action, these leaders choose to remain inactive and hope for a miracle to happen. Well, miracles are great if they can be realized, but they are as unpredictable as life itself. Doing nothing about a problem or not making a decision will invariable cause matters to get out of control and impact elements of your business adversely. As one writer said “You’ve got to jump off cliffs all the time and build your wings on the way down.”
The truth is, it is not unique to Jamaica and I would think that it exists around the Caribbean. ‘Decidophobia’, Procrastination or Decision Paralysis no matter what you call it, is a universal problem plaguing companies in both the public and private sectors. To better understand the problem, let us take a look at the three basic types of leaders who make decisions:
“If an important decision is to be made [the Persians] discuss the question when they are drunk and the following day the master of the house... submits their decision for reconsideration when they are sober. If they still approve it, it is adopted; if not, it is abandoned. Conversely, any decision they make when they are sober is
1. Those who are Afraid of Making Wrong Decisions and Let It Just Happen. This type of decision maker is very common. They essentially do not think about the pending decision, or more accurately, they avoid it. They just wait for something, someone, or circumstances such as the passing deadline to make their
In The Histories, written in 450 B.C., Herodotus makes the following statement:
reconsidered afterwards when they are drunk.” Alrick Robinson, commenting further, offered the following perspective “I understand the frustrations other business people feel about this. However, I don’t think it is a Jamaican phenomenon, perhaps because it affects certain types of business more than others.” Let’s take the issue of seeking sponsorship as an example. Most firms do not have an approved budget for every media idea presented, so a decision has to be taken as to how each unplanned for opportunity is treated. Then, the other big reality is the problem of making agreed payments afterwards and so hesitation to move forward, procrastination (or justifiable delays) in this case, may be a good thing to ensure both parties are protected. Still, procrastination is indeed a big problem and, not surprisingly, I checked the index of my book The Small Business Survival Guide, and found about six places where the term is discussed.” One of the main factors that often lead to inaction or failure to act is the absence of sufficient hard data against which a decision can be made. Patrick Hylton, Group Managing Director for National Commercial Bank Jamaica, in a recent address to private sector leaders remarked how
“For Compelling Conversations And Experiences Between Brands And Consumers. www.theclickdigitalagency.com
CLICK is an interactive digital advertising agency offering a full range of new media advertising and marketing solutions, including display, search, website design and development. Committed and focused on providing SME businesses experiencing budget constraints, with customizable, on and off line marketing and advertising services at affordable rates while offering high levels of convenience and quality.
The CLICK DIGITAL AGENCY is a member of the Blackslate (Media) Group Limited located on “Silicon Mountain” Mandeville Jamaica “The Business Technology Hub of the Caribbean"
www.theclickdigitalagency.com 876-280-9192 (Mobile)
“You gain strength, courage, and confidence by every experience in which you really stop to look fear in the face. Wherever you see a successful business, someone once made a courageous decision. There has never yet been a person in the history of mankind who led a life of ease whose name is worth remembering. The difficulty in life is the choice” Eleanor Roosevelt
his company as part of its own transformation process is relying more and more on hard data to make crucial decisions. “We have become a much more data driven organization at NCB because anecdotes and intuition often lead to poor decisions. Anecdotes can often be reflective of a minority of experiences versus the majority. Today we have more data on our customers and suppliers and employees than ever before. Big data is not going to go away and that’s because it drives powerful results.” (The full text of Hylton presentation is published in this issue as part of our Leadership Conversation Series.). 2. Those Who Make It Happen Backed By Either Position And Or Authority. Decisions, decisions and more decisions! The fear of making serious decisions is a kind of fear, called ‘Decidophobia’, so named by Walter Kaufmann at Princeton University in 1973. This type of decision maker is not so afflicted. He is not afraid to bite the proverbial ‘bullet’ and make the decision. Often times this courage is backed by either position and or authority to make the decision and ability to survive the backlash if the decision backfires. For example, when a business manager was
6 Tips for Making Better Decisions The complexity of the current business landscape, combined with ever increasing expectations of performance, and the speed at which decisions must be made, are a potential recipe for disaster for today’s executive. Unless of course, a defined methodology for decision making is put in place. If you incorporate the following metrics into your decision making framework you will minimize the chances of making a bad decision: 1. Perform a Situation Analysis: What is motivating the need for a decision? What would happen if no decision is made? Who will the decision impact (both directly and indirectly)? What data, analytics, research, or supporting information do you have to validate the inclinations driving your decision? 2. Subject your Decision to Public Scrutiny: There are no private decisions. Sooner or later the details surrounding any decision will likely come out. If your decision were printed on the front page of the newspaper how would you feel? What would your family think of your decision? How would your shareholders and employees feel about your decision? Have you sought counsel and/or feedback before making your decision?
3. Conduct a Cost/Benefit Analysis: Do the potential benefits derived from the decision justify the expected costs? What if the costs exceed projections and the benefits fall short of projections? 4. Assess the Risk/Reward Ratio: What are all the possible rewards, and when contrasted with all the potential risks are the odds in your favor, or are they stacked against you? 5. Assess whether it is the Right Thing To Do: Standing behind decisions that everyone supports doesn’t particularly require a lot of chutzpah. On the other hand, standing behind what one believes is the right decision in the face of tremendous controversy is the stuff great leaders are made of. My wife has always told me that “you can’t go wrong by going right,” and as usual, I find her advice to be spot on. There are many areas where compromise yields significant benefits, but your value system, your character, or your integrity should never be compromised. 6. Make The Decision: Perhaps most importantly, you must have a bias toward action, and be willing to make the decision. Moreover, you must learn to make the best decision possible even if you possess an incomplete data set. Don’t fall
asked what had made his organization one of the best in his industry, he pointed to his Chief Information Officer (CIO) and said “Joe is a millionaire. He can quit any time. He says what he thinks is right!” As far as this decision maker is concerned, worrying about making a decision is a waste of time. He or she sees a decision as something you have the capability of changing. Anything else is a fact of life. 3. Those Who Sit In The Rocking Chair Wondering What Happened. This decision maker is much like the first, but he makes the decision so late that he finds himself asking what happened. He makes a decision but it is usually too late and the opportunity is either lost or the problem has escalated. Just like sitting in a rocking chair, it gives you something to do but doesn’t get you anywhere. Like the decision maker in the first group, this person more often than not fails to perform a situational analysis: What is motivating the need for a decision? What would happen if no decision is made? Who will the decision impact (both directly and indirectly)? What data, analytics, research, or supporting information do you have to validate the reasons driving your decision? Going through this process allows for ventilation and clarity in
the decision making process which was utilized to arrive at the decision. One executive, who prefers not to be named, recalled phoning a particular marketing manager of a very prominent Businessuite Caribbean Top 100 company at least eight times for a sponsorship decision. Every time she called, the manager would say, “You called at a bad time, or, I have seen your email, give me a day or two to look it over and get back to you.” After the eighth call, she decided that she wasn’t getting anywhere and decided to move on as her deadline had now passed. Later that week, she encountered the marketing executive at an industry function. Before she could say anything, the manager came up to her and asked her why she didn’t call back. The executive said that her deadline for a decision had passed and it would not make sense anymore. “Ok. Well maybe next time give me a call let’s see what we can do” was the marketing manager’s reply. Just Do It! In concluding, it should be noted that making a decision and implementing one are two different things. Here is a question for you: Five frogs are sitting on a log. Four decide to jump off. How many are left? What’s the relevance of this?
prey to analysis paralysis, but rather make the best decision possible with the information at hand using some of the methods mentioned above.
In the same presentation given by Patrick Hylton, he noted the inherent problems that can occur when executives spend all their time contemplating, having made a decision, how to implement it. He cited the example of what happened at Kodak to illustrate his point. “We all know Kodak – which was so synonymous with photos that the phrase “a Kodak moment” was coined. Yet, the company filed for bankruptcy in 2011. This company saw the changes in the environment coming and made plans to evolve. They even invented the core technology in digital cameras but they just failed to act. They spent too much time planning and discussing what they were going to do. By the time they initiated their transformation, it was too late. Because they delayed acting, they ultimately became obsolete. I emphasize this step because there is a cost to too much planning. We often hear the phrase “justice delayed is
justice denied”. The same is true if we replace justice with value. Because of the time value of money, any delay in execution is value lost forever.” A protracted decision is only one part of the process and is often linked to a lack of commitment to implement the decision. There is a big difference between making a decision and implementing it. The measure of success is not only how you make tough decisions, but whether you have the capability to implement it speedily. Decide like a man or woman of action; implement like a man or woman of thought. It does not take much strength to decide what to do, but it requires great strength to do what was decided. Supported by information and articles found on the internet.
Opportunities are not static, and the law of diminishing returns applies to most opportunities in that the longer you wait to seize the opportunity the smaller the return typically is. In fact, more likely is the case that the opportunity will completely evaporate if you wait too long to seize it. 7. Bonus - Always have a back-up plan: The real test of a leader is what happens in the moments following the realization they’ve made the wrong decision. Great leaders understand all plans are made up of both constants and variables, and that sometimes the variables work against you. Smart leaders always have a contingency plan knowing circumstances can sometimes fall beyond the boundaries of reason or control – no “Plan B” equals a flawed plan. By Mike Myatt, Forbes Magazine Contributor, who writes about leadership myths, and bust them one-by–one. http://www.forbes.com/sites/ mikemyatt/2012/03/28/6-tipsfor-making-better-decisions/
W
e are living in very challenging economic times but entrepreneurs and students of business will tell you that this is the best time to start a business. Not only that, it’s recommend that if you can turn your passion into a business, your chances of success are even higher. This could explain why business partners and entrepreneurs, Alton Bedward and Onel Williams got the bright idea to start FRESH CUPS, a business born out of the idea of supporting authentic Jamaican grown products while reenergizing the local coffee culture. According to Onel Williams it was while doing some research about the coffee industry and identifying existing gaps and opportunities for commercialization that the idea came about.
who knows a few things about the coffee business is reported as saying that a resuscitated coffee industry could earn Jamaica more than US$100 million annually. “The coffee industry in Jamaica can generate revenues in the region of US$100 million per annum. Right now we are down to about $30 million and in years gone by the industry was generating up to US$50 million.” Not bad numbers no matter how you look at it. But let’s face it, with so many opportunities for consumers to get their daily morning cup of coffee, what would make them opt for FRESH CUPS? Why would any organization, event or anybody for that matter select FRESH CUPS as their exclusive provider of brewed beverage solution. Not only that, it’s reported that surprisingly, only a few Jamaicans enjoy Jamaican coffee. Jamaicans, as a nation, assimilated British customs and grew to love tea, when it was still a British colony, many years ago.
Undaunted by these challenges the duo, backed And make no mistake, Blue Mountain coffee is by personal funds, family support, and a potent top shelf stuff, the real McCoy, considered one of mix of “winging it” and ambitiously putting the most expensive and sought-after gourmet themselves in the marketplace and loudly asking coffees in the world. the question, “Can we make this work?” they dived in. According to www.coffee.org “Jamaican Blue Mountain coffee is one of the finest coffees in What they uncovered was an affirmation of the world. It is noticeably rich and flavorful with their hunch. There is an untapped demand for a deep, silky smoothness that is unmatched by the product and service offering they were most of the world’s coffee. developing. Additionally, the industry was If you wonder why the Blue Mountains of Jamaica produce one of the true wonders of the coffee world, you’ll have to know some of the history of coffee in Jamaica. When you shop for Blue Mountain coffee from Jamaica, you’ll see that it is an expensive coffee. Part of the reason for its high price is that the Japanese discovered Jamaican coffee long ago and exports of this product to Japan now account for 80% of all the coffee grown in Jamaica. In comparison, the United States is the second largest importer of Jamaican Blue Mountain coffee at 8%.” Jamaican Senator Norman Grant, a businessman
ignoring a large gap in the supply chain to consumers. So what about the competitive environment? “Well as in all industries, competition is inevitable but what sets you apart is the value added you can offer to the end users. Once you can keep them satisfied with your offerings as well as maintaining that relationship with them then the potential for creating value and money is available. Additionally, we don’t see our entry into this market as being competitive, we see it as a collaborative effort with all, because the more people are made aware of the opportunities, the better it does to grow the industry from a supply stand point because remember that our objective also lies in being able to provide 100% authentic Jamaican based products.” responded Williams. So what are the other competitive advantages they are relying on? Well convenience is one thing in addition to efficiency and diversity. The company offers a range of ground and roasted 100% Jamaica Blue Mountain Coffee (sourced from farms certified by The Coffee Industry Board of Jamaica), as well as teas and brews prepared in traditional forms or customized for clients. In addition, FRESH CUPS can provide on-site pop-up kiosks, as well as a “DETOX” service at events where they can be
One on One with “Fresh Cups” Onel Williams BM: What’s your professional and business background? OW: My only professional job was with Jamaica National Building Society where I spent five years as the group Systems Administrator in the Security Department, honing my skills in administration and sharpening my focus on becoming organized. However, I cut my entrepreneurial chops being an event promoter of some moderate success for the better part of almost 12 years, which lead me to become a marketing administrator for a few popular night clubs/ lifestyle brands locally. BM: Who came up with the idea first? OW: Well always being entrepreneurially driven, it was while doing some research about the coffee industry and identifying gaps and opportunities present for commercialization that the idea came about and in going about getting the necessary information I was able to collaborate with an expert in the field that was like minded and then the ideas started to flow until it culminated in what is now Fresh Cups. BM: Did you do any market research or study to verify the marketability of the business idea? OW: Well definitely some research was required but being an innovative service there was not a similar benchmark to compare it to locally, so what we did was a mix of “winging it” and ambitiously and simply putting ourselves out there and asking the question loudly, “Can we make this work?” BM: So what did it tell you? OW: Very loudly, that there is an untapped demand for the product and service offerings. Additionally, that the industry was ignoring a large gap in the supply chain to consumers. BM: How was it sold to the other partner and what was his initial reaction? OW: Well the process was simple, once we could combine the necessary knowledge needed with a clear vision of what we wanted to do and who we wanted to be, then the rest fell into place. BM: How was the name FRESH CUPS conceived and developed? OW: Again, this was derived from our internal discussions about what was our mission overall. We wanted a name that personified that explicitly and it just popped up. Call it divine intervention BM: How was startup funded? OW: Personal funds and family
BM: Are you otherwise employed and/or have you now made the decision to do this full time? OW: Well I am never opposed to employment of any kind, as my natural affinity for developing business ideas and getting them as far as I can into development, would be a sure asset to any industry, but at this time our focus is primarily Fresh Cups and establishing a solid foundation for its growth. As such, we are getting comfortable with the idea that this will be a way of life for us now.. BM: The big question though is, given all the competition out there, can you make money from this venture? OW: Well, as in all industries, competition is inevitable but what set you apart is the value added you can offer to the end users. Once you can keep them satisfied with those offerings as well as maintaining that relationship with them, then the potential for creating value and money is available. Additionally, we don’t see our entry into this market as being competitive; we see it as a collaborative effort with all, because the more people are made aware of the opportunities, the better it will grows the industry from a supply stand point. Remember that our objective also lies in being able to provide 100% authentic Jamaican based products. BM: Can you say what the plans and strategy are going forward? OW: At this stage in our startup we are focused on primarily solidifying our partnership alignments and working with them to penetrate the market. As we complete each stage of our growth plan, the market will be made aware. BM: Any other information that would be useful to our readers and others contemplating going into their own business? OW: Encourage the public to keep on supporting Jamaican manufactured products. The more that this is done is the greater rate of businesses that can be spun off from these industries. There is a whole market open for creating value added products from these industries that is severely untapped. Also, the big players and owners of resources in the island need to be actively putting plans together to participate in the world conversations now about logistics and supply chain management and how they can assist Jamaica to become a part of that global inclusion and not let the ship pass us on this one. BM: Thank you. OW: Cheers and drink up your coffee.
fully operational within 10 minutes of setup. They also provide delivery services to any location.. Making brewed product solutions readily available to corporate organizations and commuters is like instant coffee some would say but of a superior quality. How much does their office service cost you ask? Well, it all depends on the combination of products and services you require. An account manager will be more than happy to provide a free on-site evaluation and a quotation. Each Fresh Cup customer and client receives a custom pricing and discount depending on product volume and equipment needs along the way. And to top it all, each cup of Fresh Cups will enhance the overall atmosphere of your environment with the aroma of good coffee creating a comfortable and a more workefficient environment. I can attest to that. Onel Williams who also holds to position of Operations and Account Manager will tell you, as he did the Jamaica Gleaner recently, that the idea and strategy for the business which he describes as “a marketing and distribution vehicle� was to take the ultimate coffee and brewing experience directly to patrons. The big question though is, given all the competition out there, can these guys make
money from their venture. We know that they have agreed that the primary aim of the company is not only financial gain, but at some point you have to take financial account of the business and determine if this is worth doing. Lofty idealistic goals such as encouraging consumers to embrace Jamaican coffee, which will subsequently lead to expanding the local coffee market is fine. But if at the end of the day it cannot be sustained then what? And what are the plans and strategy going forward? From all indication the duo are very focused and deliberate about how they are going about executing their business plan. What’s also clear is that this is not a short term business for these guys; they plan to be in this for the long haul. The focus now is on building a solid foundation for growth. “At this stage in our startup we are focused on primarily solidifying our partnership alignments and working with them to penetrate the market. As we complete each stage of our growth plan, the market will be made aware of what the plan and strategy is going forward. We’re going to keep a close watch on this company. We may just have another Starbucks emerging in Jamaica. Who remembers what was said when Starbucks was started? BM
The Starbucks Story
Like all businesses you have to start small and gradually grow with the market. When the first Starbucks opened in 1971, the company was a single store in Seattle’s historic Pike Place Market. From just a narrow storefront, Starbucks offered some of the world’s finest freshroasted whole bean coffees. The name, inspired by Moby Dick, evoked the romance of the high seas and the seafaring tradition of the early coffee traders. It was however not until 1981, when Howard Schultz (Starbucks chairman, president and chief executive officer) first walked into a Starbucks store that things started to turn. From his first cup of Sumatra, Howard was drawn into Starbucks and joined a year later. In 1983, Howard traveled to Italy and became captivated with Italian coffee bars and the romance of the coffee experience. He had a vision to bring the Italian coffeehouse tradition back to the United States. A place for conversation and a sense of community. A third place between work and home. He left Starbucks for a short period of time to start his own Il Giornale coffeehouses and returned in August 1987 to purchase Starbucks with the help of local investors. And the rest they say is history. BM
Transformational Leadership - Key to Growth
Mr. Patrick Hylton, Group Managing Director of National Commercial Bank (NCB)
I
t is a pleasure to host this month’s President’s Forum. These forums are important for the sharing of new ideas and best practices, for fostering collaboration and building and maintaining strong relationships within the private sector. As a result NCB continues to support the PSOJ in this worthwhile endeavor. This morning I will discuss Transformation as an Enabler of Growth.
Christine Lagarde, managing director of the International Monetary Fund
We are all aware that Jamaica is undergoing its own transformation as part of our economic programme. To date we have been meeting our targets and it is important that we continue to perform under the programme to lay the foundation for sustainable growth. A few weeks ago, Mrs. Christine Lagarde commented on how unique, remarkable and useful our Economic Programme Oversight Committee or EPOC is and I agree. I am also of the view that the partnership that EPOC symbolizes is crucial to the transformation of our country. All stakeholders – public and private sector and ordinary citizens must play a role. As the Jamaican economy begins to transform at the macroeconomic level,
it is important that it is accompanied by a similar if not greater evolution at the microeconomic or firm level. Today, within the context of the tight Jamaican economic programme, the pervasive question is “where is the growth?” I don’t think anyone will argue that sustainable growth is critical to long term economic viability of the country. Similarly none of us can argue with the data that shows that for decades Jamaica has experienced relatively low growth or at times no growth. In spite of this, there have been segments of the economy that have experienced significant growth during this period. Based on my experiences, it is my strong belief that the growth we seek can be unlocked with the transformation of our mindsets and the way we do business. It was Albert Einstein who once said “The definition of insanity is doing the same thing over and over again and expecting different results”. The burning platform for growth through transformation goes beyond our economic programme. It is further fueled by the fast changing global environment in which we operate. This is an environment where technology and digitization have lowered barriers to entry, changed the competitive landscape and raised our customers’ expectations and expanded their options. It is in the interest of every firm, every corporation to make the adjustments required to survive or thrive in this new norm. Jack Welch often said it this way “If the rate of change on the outside is greater than the change on the inside, the end is near”. I will illustrate my belief regarding the ability to unlock growth by transforming mindsets
and behaviours using my own experiences and a few quotes. By transformation, I mean doing things differently. I mean significant and meaningful change; change that makes persons doubtful, uncomfortable and even resistant.
• In 1946, Darryl Zanuck, executive at 20th Century Fox said - “Television won’t be able to hold on to any market it captures after the first six months. People will soon get tired of staring at a plywood box every night.”
When I spoke about transformation, note that I said that both mindsets and behaviours would need to transform. It was Buddha who said “ The mind is everything, what you think you become.” Often times, it is the failure to transform one’s mindset that leads to the failure and not the actual transformation initiative in itself.
• In 1968, a Business week article said – “With over 50 foreign cars already on sale here, the Japanese auto industry isn’t likely to carve out a big slice of the U.S. market.”
To illustrate the point I will highlight a few examples of individuals that could not conceptualize growth in a particular area that later experienced tremendous growth. It demonstrates the importance of one’s mindset in the transformation process.
It may be our natural disposition to doubt the growth possibilities given our challenging circumstances. However, there will always be challenges, even if you are not operating in a developing market. But my view on challenges is to look at it much in the same way we do algebra – given x solve for y. They represent an opportunity to demonstrate how skillful and capable we are as leaders. As Abigail Adams writing to Sir
• In 1943, Thomas Watson, President of IBM said - “I think there is a world market for maybe five computers.”
• In 1977, Ken Olsen founder of Digital Equipment Corporation said - “There is no reason anyone would want a computer in their home.”
“By transformation, I mean doing things differently. I mean significant and meaningful change; change that makes persons doubtful, uncomfortable and even resistant.”
Thomas Jefferson in 1790 said, “These are the hard times in which a genius would wish to live. Great necessities call forth great leaders.” In every recession, you find companies that are able to grow, notwithstanding the environment. In the 2007/2008 U.S. recession, companies such as Apple, Starbucks and WalMart were able to grow in spite of the deep recession. You can also find growth in low growth scenarios. Digicel is an example of this. Digicel received its telecommunications license in 2000. In that year, Jamaica’s real GDP growth was 0.2%. (Source: CIA Factbook). Many may have thought entering Jamaica, was a ludicrous strategy for the telecommunications company, but they saw opportunity. By building out an extensive network and introducing the pre-paid pricing model and affordable handsets, Digicel was able to acquire over 100,000 subscribers in 100 days after their April 2001 launch.
Dennis O’Brien, Chairman of Digicel
This surpassed their own projections as they originally aimed to achieve 100,000 subscribers over the course of a year. This set the stage for the transformation of the telecommunications landscape in Jamaica and tremendous business growth for Digicel. At one point, Jamaica was Digicel’s most profitable market. Today Jamaica’s mobile penetration is over 100%, one of the highest penetration rates in the world, across developing and developed markets. We have also seen their main competitor Lime engage in its own transformation and consequently make progress in a very competitive business. Once you transform your mindset, then you also need to transform your behaviour. You must do something different to see different results.
US $150 billion by late 2007 and today Apple’s market cap is in excess of US $500 billion dollars. Compare Apple’s experience to today’s PC manufacturers faced with increased competitive pressures. The commoditization of the product has led to shrinking margins and profitability. Apple transformed and avoided that fate and experienced tremendous growth during the process. At this stage you may be thinking, sounds simple, but easier said than done. NCB has been on a transformation journey since 2011 and so it is definitely easier said than done. We recognized that we had a model that had not changed sufficiently in decades even while the financial services landscape was changing dramatically globally. When we realized that in the near term companies like Google could become our competition, we knew we had to make changes. Our journey continues, but I will share a few of the key lessons that stand out to me so far. We have been using a five step approach to transformation based on a framework developed by McKinsey and Company. The five steps are 1) Aspire 2) Assess 3) Architect 4) Act and 5) Advance.
IBM is a company that had its fair share of performance challenges at one stage and had to reinvent itself. Today IBM is no longer a PC manufacturer and seller. It has transformed itself into a business and technology services company. Without that transition, it would be having the performance struggles we see Dell experiencing. Apple is another example of a company that reinvented itself. We know of the modern day Apple but before it transitioned to what we know today, it was a company with declining performance and relevance, focusing primarily on computers before it transformed the market place for mobile computing devices and portable entertainment. In 2003, when Apple introduced the iPod, its market capitalization was approximately US $1 billion. That grew to over
Step 1 is to Aspire – this answers the question “Where do we want to go?” What do we want to achieve? This is about the big dream and the audacious goal. Our Chairman Michael Lee Chin recently shared a quote about aspirations. It says: Aspiration is the main fuel for progress. An aspiration transforms a set of ordinary people into extraordinary achievers. It provides the physical and mental energy for people to convert plausible impossibilities into convincing possibilities. At NCB, this audacious goal was to become one of the top five financial services institutions in the English and Spanish speaking Caribbean. Of course, when we set this aspiration, most thought it was impossible. Our operations were primarily in Jamaica. How could we achieve this?
is for the greater good. Smooth seas don’t make for skillful sailors – so as the tide becomes rough – don’t abandon the ship.
Michael Lee-Chin, Chairman of NCB
Another aspiration we set was to triple our sales productivity. We heard all about the economy and what our IT systems could not do as reasons why we would not achieve this goal. However we changed our sales methodology and framework completely, and were able to triple sales productivity in less than 6 months. This played the primary role in offsetting losses related to the Jamaica Debt Exchange and this resulted in NCB becoming the number one bank in terms of profitability for the first time in its history. In terms of our regional aspirations, we are successfully tracking to achieving this goal. This plausible impossibility has quickly become a real possibility. One of the lessons learned in the aspiration setting process is that you really need to be bold and avoid the tendency to be incremental. If you don’t hear any complaints or comments about how crazy the targets are, or persons saying “it can’t be done”, when you set those goals or objectives, you are likely not being aggressive or transformative enough in your objectives. The great Nelson Mandela once said “I learned that courage was not the absence of fear, but the triumph over it. The brave man is not he who does not feel afraid, but he who conquers that fear”. We must move past our fears, resistors and detractors, if at the end of the day our aspiration
STEP 2 is to Assess – This answers the question “How ready are we for the journey? How far are we from the goal?” This is about evaluating where you are today versus your aspiration. The very nature of a transformation aspiration implies that you will need to make significant changes in how you operate as an organization. In order to make these organizational changes, individual behaviours and mindsets will also need to shift so these need to be assessed as well. The assessment requires honesty regarding your strengths, but even more honesty regarding your weaknesses and gaps. In conducting our assessment for our sales transformation, we learned a number of lessons: 1) It is important that when we benchmark our performance, we are looking beyond our local borders. When we set the aspiration of tripling sales productivity, we did so because we looked at regional benchmarks. We knew that if other institutions with similar macro and internal challenges could achieve these targets, then so could we. We also went for the productivity levels of the top tier institutions in the region versus aiming for average. We also look outside the region and outside our industry when we think about how we can grow. Insularity in the environment we now live in can easily limit our perspective and consequently our accomplishments. 2) It is important to validate “intuition” with analytics. Many of the persons we thought were “top sales performers” based on their performance appraisals really were not when we looked more deeply at the data. Areas where we were told lacked opportunity, revealed otherwise when we looked more deeply at the analysis. We have become a much more data driven organization at NCB because anecdotes and intuition often lead to poor decisions. Anecdotes can often be reflective of a minority of instances versus the majority. Today we have more data on our customers and suppliers and employees than ever before. Big Data is not going to go away and that’s because it drives powerful results. If we look at the impact
on Amazon’s customer experience, the election of President Barack Obama and even the recent German World Cup win, these have come about as a result of aggregating and analyzing data to drive decisions and strategies. 3) The third lesson on Assessing is that leaders need to take the time to look in the mirror too. Role modeling is a critical part of change language. You must walk the walk and talk the talk. Any transformation failure is a collective failure – including that of the CEO and senior managers and not just of the staff. STEP 3 is to Architect – This answers the question “What are the steps that will help us to achieve our aspiration?” This is developing the action plan. It is important to have a plan. It gets everyone on the team rowing in the same direction at the same time which leads to greater efficiency and effectiveness in execution. My only caution in the architecting phase is to avoid the phenomena of analysis paralysis. I paraphrase Robert Burn’s poem To A Mouse – “The best laid schemes of mice and men often go awry”. This happens ladies and gentlemen because the environment is not static and so it is impossible to anticipate all of the various scenarios that may play out. It is important to plan but quickly get to action which is…….
too much time planning and discussing what they were going to do. By the time they initiated their transformation, it was too late. Because they delayed acting, they ultimately became obsolete. So I emphasize this step because there is a cost to too much planning. We often hear the phrase justice delayed is justice denied. The same is true if we replace justice with value. Because of the time value of money, any delay in execution is value lost forever. One of the lessons I have learned in terms of acting during our sales transformation that it is better to pilot the action plan and then refine as you go along than to plan indefinitely or do a massive untested rollout. We have had experiences in the past when we would go live all at once and would have to roll back entirely because there would be so many areas to fix. In all of our current initiatives we now test in a couple of branches, refine, retest and then roll out more broadly. This gets us to action but mitigates the risks of failure or insufficient planning.
Step 4 Act – This answers the question “How do we manage the journey?” There is no value in aspiration without action. John F. Kennedy said “There are risks and costs to action but they are far less than the long range risks of comfortable inaction.”
The second part of acting for me is around courage. If you are embarking on something truly transformational, you will face resistance. In some cases you may face forms of retribution but the vision of the world you want to see should keep you motivated and focused. We must move past our fears, resistors and detractors, if at the end of the day our aspiration is for the greater good. Aristotle once said, “There is only one way to avoid criticism: do nothing, say nothing, and be nothing.” So be brave and courageous in your actions. Your legacy and accomplishments will redeem you.
We all know Kodak – which was so synonymous with photos that the phrase “a Kodak moment” was coined. Yet, the company filed for bankruptcy in 2011. This company saw the changes in the environment coming and made plans to evolve. They even invented the core technology in digital cameras but they just failed to act. They spent
The fifth and final step in the five step framework is Advance. Advance – answers the question “How do we keep moving forward?” Even as you move toward your bold aspiration, continuous improvement must be practiced on an ongoing basis even daily if necessary. You will learn new information. You will develop new capabilities.
The environment will change and so those plans will need to constantly evolve. The one constant is change in our society today. Even when you have reached what you consider to be the highest heights of achievement or performance, you must continue to advance. I highlight companies like Apple, Samsung and Amazon to make this point. These are three of the best companies in the world in terms of market capitalization, profitability, growth, brand strength, customer satisfaction and a number of other dimensions. Yet, they are constantly evolving and transforming as a result, they are constantly growing. Gandhi once said - “Constant development is the law of life, and a man who always tries to maintain his dogmas in order to appear consistent drives himself into a false position.” So it comes back ladies and gentlemen to Albert Einstein’s quote…if we want different results, in this case growth, then we have to do something differently. We need to transform. At NCB, our next transformation is what we are calling our “Bank of the Future” programme. In the first wave of this programme we have installed intelligent ABMs and Kiosks in our branches which allow our customers to conduct routine transactions. This allows the customer to avoid long waits in the teller lines, and the costs of conducting transactions on these channels is lower than the cost at the teller line and in many instances free. In addition, it still provides customers with the same safe and secure environment of the banking halls that they previously enjoyed with added convenience as they can conduct transactions after banking hours. Some of our locations are accessible 24 hours. So now our taxi drivers who are unable to conduct banking during the day because they have to maximize fares, can do these transactions at the end of the day when the demand slows down. It is only one of many changes that we are embarking on but we have recognized the need to change and that the environment is changing rapidly. We have initiated those changes. They are uncomfortable and noticeably different and so we know that they are transformational.
We also look at our transformation as a journey and not a destination. Continuous improvement is now a way of life at NCB. The public may look at recent actions we have taken and wonder why we are doing these things given how profitable we are. It is important to note that historical financial performance is no predictor of future performance. Companies that have generated billions in US dollars in profits – Lehman, Bear Stearns – have disappeared. Recall that three of the best performing companies in the world – Apple, Samsung, and Amazon – are still making continuous improvements to their products and services and business models and as a result they continue to grow. In closing, I would like to re-emphasize how important it is for all segments of our society to play a role in Jamaica’s transformation. Transformations in the public and private sectors will all roll up to an overall societal transformation that we all stand to benefit from. Instead of asking “Where is the growth”, we must recognize that the growth is within each of us. It is time for us to stop asking and to start transforming our mindsets first and then our behaviours. It has been done, even within the most challenging circumstances, and it can be done again, we just have to do it. Let us each make a commitment today to transition the dialogue from where’s the growth to identifying the growth and pursuing that growth through transformation of our businesses. As Daniel Burnham once said, “Make no little plans. They have no magic to stir men’s blood and probably themselves will not be realized. Make big plans; aim high in hope and work, remembering that a noble, logical diagram once recorded will never die, but long after we are gone will be a living thing, asserting itself with ever-growing insistency.” (Daniel Burnham) Thank you. Mr. Patrick Hylton, Group Managing Director of National Commercial Bank (NCB) Jamaica, was addressing the Private Sector Organisation of Jamaica (PSOJ) President’s Forum held July 22, 2014 at the Jamaica Pegasus Hotel in New Kingston.
Jamaica 2030
“A view of the future today�
Caribbean Leadership Conversations Further Information Contact: Avril King at avrilkingva@gmail.com Or 876-313-5351 Avril King VA Services Or aldo@blackslateholdings.com or 876-280-9192 www.360signaturevents.com