LEADERS ISSUE 82
DECEMBER 2023
DIGEST
The Power of
MINDSET SHIFT To read, click here leadinstitute.com.my/leaders-digest Scan the QR code for quicker access
Source: Image by https://www.newtraderu.com/wp-content/uploads/mind-control-2.jpg
LEADERS
DIGEST
Publication Team Editor-in-Chief Fang Tze Chiang Editor Diana Marie Capel Graphic Designers Awang Ismail bin Awang Hambali Abdul Rani Haji Adenan
* Read our online version to access the hyperlinks to other reference articles made by the author.
Contents
ISSUE 82 I DECEMBER 2023
04 HOW LEADERS CAN COMBAT AN OVER-
10 20 BENEFITS OF GRATITUDE
06 WHY LEARNING IS THE KEY TO LEADERSHIP
12
THE PAINS AND REWARDS OF SCREEN-FREE SUNDAYS
08 HOW EMPOWERING MIDDLE MANAGEMENT
14
THE DIGITAL TRANSFORMATION OF MONEY IS NOW
RELIANCE ON TECHNOLOGY TO REDUCE STRESS
CAN IMPROVE YOUR CULTURE
LET US KNOW If you are encouraged or provoked by any item in the LEADERS DIGEST, we would appreciate if you share your thoughts with us. Here’s how to reach us: Email: corporate@leadinstitute.com.my Leader’s Digest is a monthly publication by the Leadership Institute of Sarawak Civil Service, dedicated to advancing civil service leadership and to inspire our Sarawak Civil Service (SCS) leaders with contemporary leadership principles. It features a range of content contributed by our strategic partners and panel of advisors from renowned global institutions as well as established corporations that we are affiliated with. Occasionally, we have guest contributions from our pool of subject matter experts as well as from our own employees. The views expressed in the articles published are not necessarily those of Leadership Institute of Sarawak Civil Service Sdn. Bhd. (292980-T). No part of this publication may be reproduced in any form without the publisher’s permission in writing.
2
Issue 82 I December 2023
LEADERS
DIGEST
From the
Editorial Desk
Mindset SHIFT: What does it take? The power of mindset shifts can truly be transformative experiences that open up new possibilities for growth and progress. Learning how to change our mindset can seem overwhelming, but it does not have to be because all it takes to change our mindset is the way we see the world. One choice we can easily make is the meaning we give to our experiences as a key part of having a successful mindset shift is recognising where our limitations are. By being aware of these limitations, we can make more informed decisions on how best to overcome them. When we are able to identify the things that are holding us back, it becomes easier to take steps toward overcoming those obstacles and achieving our goals by taking classes or simply changing the way we think about ourselves and our situations. A mindset shift also causes us to re-evaluate our goals or create new ones altogether. This realisation can be empowering because it allows us to adjust our plans based on what works best. We can also use this time of evaluation to focus on more realistic goals that will help us move forward. Mindset shifts can also be used as an opportunity to change habits or routines that no longer work well in the current ecosystem, and by recognising when something isn’t working anymore, we have the chance to make changes and develop healthier habits that benefit us in the future. Do we see challenges as obstacles or as opportunities? Fear is a destructive emotion, and overcoming our fears is a major step toward how to change our mindset for success.
“Nothing in life has any meaning except the meaning we give to it.”
- Tony Robbins
Issue 82 I December 2023
3
LEADERS
DIGEST
Source: Vector image is from freepik.com by @freepik
HOW LEADERS CAN COMBAT AN OVER-RELIANCE ON TECHNOLOGY TO REDUCE STRESS BY MICHELLE GIBBINGS
ESCAPE TECH OVERLOAD AND THRIVE If you’ve ever spent a sustained period detached from your digital device, you’ll know the joy and clarity it produces. New ideas emerge. Your brain feels genuinely rested. Too much tech in our working day can negatively impact our mental health and wellbeing A report for the European Parliament reviewed 22 prior studies on the impacts of digital technologies in the workplace and highlighted the impact of what’s called ‘technostress’. The report found that working with technology increases the probability of burnout, can negatively impact a person’s quality of life and lead to techno-addiction. The adverse effects don’t depend on the type of technology a person uses but on how the technology is used. Research conducted by Gary Small and colleagues from the David Geffen School of Medicine at the University of California also found that frequent digital technology use significantly impacts brain functions and people’s behaviour. The negative impacts include heightened attention-deficit symptoms, impaired emotional and social intelligence and brain development, technology addiction, social isolation, and disrupted sleep.
4
Issue 82 I December 2023
It’s not all bad The researchers also concluded that specific computer programs and video games might improve memory, multitasking skills, fluid intelligence, and other cognitive abilities. Technology also facilitates the ability to work from different locations, opening up new opportunities and flexible work practises. The question to consider is - Are you controlling how you use technology to accelerate your progress, or is it controlling you and hindering your progress? Finding the optimal approach isn’t just about what you do; it’s about what the people around you do. Leaders play a crucial role, as does your organisation’s culture, which sets the standard around what’s accepted and expected.
Know the warning signs Be alert to the warning signs of tech overload. Start noticing if your team members are working excessively long hours and if you are getting emails or online messages late into the evening. Also, look for drops in productivity, unexplained absences and changes in your team member’s behaviour. For individuals, notice if you can never switch your computer or mobile devices off and if you are constantly refreshing your email screen.
LEADERS
DIGEST
Set boundaries Economist John Pencavel from Stanford University found that productivity declines when people work more than 50 hours each week. Even worse, working 70 hours or more a week causes the person to get the same amount of work done as people who work 55 hours. His research highlights the impact of employee fatigue and stress on productivity and the probability of errors, accidents, and sickness. In contrast, research revealed that having perceived job flexibility enhances employee’s work-life balance because it provides more control over their work schedule. Setting boundaries is not a sign of weakness or a lack of commitment. It’s an essential practice for achieving success personally and professionally.
Build routines If you consistently check emails and respond to work requests, you deny yourself the opportunity to have a real break. You are also creating a pattern of behaviour for yourself and those around you. For leaders, discuss and agree on boundaries with your team members. Agree on what’s reasonable. Talk about how you will handle calls and emails received outside set work hours so there is time to switch off from work.
Manage the ‘too much’ It can be easy to be overwhelmed by technology options. Be selective. Ensure the tools you select are fit for purpose. Technology aids productivity, but only when the purpose and functionality align and it’s integrated into your work. Be judicious about what applications you allow to send alerts and notifications. Regularly check and remove apps from your phone that you no longer use.
During the day, get away from the computer and get moving. For example, put headphones on and hold your meeting while walking outside. The key is to get away from your desk because by shifting your environment, you alter your state, helping to reset your mindset and get a fresh perspective.
Avoid the book-end approach Avoid starting and finishing your day with technology. Sleep is a critical ingredient for well-being, and technology impacts your sleep. Research shows that using technology emitting blue light stimulates the brain, making it harder to fall asleep. It can also negatively impact your circadian rhythm, reduce the amount of REM sleep you receive, and therefore impact your alertness when you wake up. Schedule your phone to switch to ‘do not disturb’ and turn off social media push notifications and email alerts at set times during the day and evening. If you need to wake up with an alarm clock, avoid the clock being your phone.
Seek real connection Author of Four Thousand Weeks: Time Management for Mortals, Oliver Burkeman suggests that we spend so much time on our digital devices because “They’re just the places we go to seek relief from the discomfort of confronting limitation”. By limitation, he refers to our limited control over how our lives unfold. Humans are hard-wired for connection and too much technology fuels disconnection. Spending your day at work checking out social media and ‘doomscrolling’ will not aid your productivity, mood or relationships. So, set aside regular times for social engagements and opportunities where you can share, laugh and connect away from your digital devices.
Step away Participating in online meetings all day can be exhausting. Consider that not all conversations need to be face-to-face; some are equally effective when you pick up the phone and chat.
MICHELLE GIBBINGS Michelle Gibbings is a workplace expert and the award-winning author of three books. Her latest book is ‘Bad Boss: What to do if you work for one, manage one or are one’.
Issue 82 I December 2023
5
LEADERS
DIGEST
Why Learning Is The Key To Leadership BY WILLIAM ARRUDA
Source: Photo by Getty
LIFELONG LEARNING: THE CORNERSTONE OF EFFECTIVE LEADERSHIP IN A RAPIDLY CHANGING WORLD Today, leaders are constantly challenged to navigate unprecedented shifts in business models, tech advancements and workforce expectations. Now, more than ever, the ability to learn and adapt is not just a nice-to-have trait for leaders; it’s an absolute necessity. In the words of John F. Kennedy, “Leadership and learning are indispensable to each other.” Here’s are eight reasons why learning and leading are intrinsically linked. 6
Issue 82 I December 2023
1. THE PACE OF CHANGE IS ACCELERATING Leaders can no longer rely on time-tested strategies and proven models. The speed of technological innovation and the global dissemination of information have ushered in an era where change is the only thing that isn’t going to change. Leaders who commit to ongoing learning can anticipate these shifts and guide their teams more adeptly through them 2. DIVERSE CHALLENGES REQUIRE DIVERSE KNOWLEDGE Today’s business leaders are confronted with a multitude of demands, from managing remote teams to leading hybrid meetings, or from navigating global supply chain disruptions to addressing concerns about sustainability, and a slew of other seemingly contradictory needs. Continuous learning allows leaders to acquire knowledge across multiple domains, equipping them with a big-picture understanding of diverse stakeholders and the best path to win-win solutions.
LEADERS
DIGEST
3. TEAMS THRIVE IN A LEARNING CULTURE When leaders prioritise their own professional development, it sets a powerful example for their teams. To build a team that stays ahead of change, leaders need to demonstrate a culture of learning, where employees are encouraged to upskill, reskill, and take charge of their own career trajectories. Learning cultures not only boost employee engagement and job satisfaction but also keep the organisation agile, resilient and on the leading edge of innovation. One way leaders encourage learning while promoting team cohesion is to sponsor learning programs where the team participates together. As President John Quincy Adams is said to have proclaimed, “If your actions inspire others to dream more, learn more, do more and become more, you are a leader.” 4. DECISION-MAKING REQUIRES NEW SKILLS AND KNOWLEDGE The decisions that leaders make have profound impacts on their organisations. With the benefit of continuous learning, leaders can base their decisions on the latest research, best practices and a deeper understanding of the complexities of their industry. Well-informed decisions can be the difference between propelling a team forward or facing unforeseen setbacks. In our data-driven society, whims and hunches don’t cut it anymore. 5. DIGITAL IS PART OF EVERYONE’S JOB The digital revolution has led to a skills gap, with many organisations struggling to find talented applicants who are well-versed in data analytics, artificial intelligence and digital marketing. Leaders who are committed to learning can better understand these areas, guide talent-development initiatives, and ensure their teams have the competitive edge needed to thrive in the digital age. 6. SELF-AWARENESS IS THE MOST NEEDED LEADERSHIP ATTRIBUTE Leaders need to be aware of their strengths, blind spots, preferences and biases. The learning process itself helps us achieve this. Learning in the areas of emotional intelligence, relationship building and personal branding can help leaders directly
increase this trait. In fact, self-awareness is the first step in the personal branding process and in Daniel Goleman’s model of emotional intelligence. And as remote and hybrid work become the norm, the ability to connect with—and lead—teams virtually requires a heightened level of awareness of self (and others). 7. LEARNING CREATES CONNECTIONS WITH TEAM MEMBERS According to Gallup, leaders who score high in the strength of “Learner” on the Clifton Strengths Assessment provide stability by being prepared for inevitable situations of “not knowing.” Not always being the expert can create transparency for others and makes room for everyone to pitch in with their individual areas of true expertise. 8. LEADERS NEED A STRATEGY FOR STAYING AHEAD OF COMPETITORS Leaders who are dedicated to continuous learning are curious and can identify emerging market trends, innovate more effectively, and position their organisations to quickly capitalise on new opportunities. Being proactive in learning and adapting is the ultimate way to stay ahead of the curve—and ahead of the competition. In his 1597 book, Meditationes Sacrae, Sir Francis Bacon wrote, “Knowledge itself is power.” And today it holds more truth than ever before. For leaders, the commitment to continuous learning is the only way to remain relevant and avoid becoming a reluctant relic. As the business landscape continues to evolve, leaders who stay curious and embrace learning will undoubtedly be at the forefront, guiding their organisations to success. Learning is leading. This article was originally published in Forbes.
WILLIAM ARRUDA William Arruda is the bestselling author of the definitive books on personal branding: Digital YOU, Career Distinction and Ditch. Dare. Do! And he’s the creative energy behind Reach Personal Branding and CareerBlast.TV – two groundbreaking organizations committed to expanding the visibility, availability, and value of personal branding across the globe. Issue 82 I December 2023
7
LEADERS
DIGEST
HOW EMPOWERING MIDDLE MANAGEMENT CAN IMPROVE YOUR CULTURE BY REBECCA HOUGHTON BY REBECCA HOUGHTON
Source: Vector image is from freepik.com by @pch.vector
THE UNTAPPED INFLUENCE OF MIDDLE MANAGEMENT In discussions about workplace culture, there’s a critical factor that often goes overlooked. While thousands of articles underscore the role of senior leadership in shaping culture, only a handful delve into the true powerhouse hidden in the middle ranks: middle management. Middle managers, or the B-Suite as I prefer to call them, are the heartbeat of your organisation. Show me a staff member more interconnected than a middle manager—whether it’s upward, downward, or across the organisation; middle managers are the glue that holds it all together. They function as architects of culture, and through their actions and decisions, they establish the prevailing atmosphere for the entire organisation. Consider their role in building trust—an essential foundation for a thriving culture. B-Suite leaders act as conduits between senior management and frontline employees, uniquely positioned to either bolster or break trust. Their interactions, decision-making, and commitment to transparency play a crucial role in 8
Issue 82 I December 2023
fostering trust. When trust is strong, collaboration and communication flourishes, morale soars, and performance thrives, creating a solid foundation for a culture where employees are engaged, motivated, and aligned. Conversely, when trust breaks down, it can lead to a range of problems, including disengagement and a loss of confidence in leadership. This situation can be quietly devastating. At first, you may not even realise it, wondering, ‘What’s happening with that team?’ or ‘Why has that project stalled?’ However, beneath the surface, there may be a subtle erosion of trust and confidence, permeating through middle management, impacting employee wellbeing, teamwork, innovation, and ultimately, the bottom line. Recognising the significance of the B-Suite, the Boston Consulting Group labels them the “forgotten but critical cohort.” Let’s delve into why the B-Suite is anything but forgettable and why they play such a pivotal role in shaping culture.
LEADERS
DIGEST
RETENTION AND ENGAGEMENT
CAREER PROGRESSION
According to DDI, B-Suite leaders are 10 times more likely to foster high team engagement, six times more effective in retaining top talent, and five times better at preventing employee burnout. Investing in your B-Suite is essential if you want these outcomes.
Limited career progression opportunities can diminish employee commitment. Research from Culture Amp shows that in companies where career progression opportunities are limited (below-average), there is no discernible difference in the level of commitment between employees who have ‘good’ managers and those who have ‘bad’ managers. Therefore, creating career progression options becomes a critical priority for fostering a motivated workforce. B-Suite leaders, while unable to create new roles and pathways, can expose their teams to senior executives, provide opportunities for visibility, promotion and acting responsibilities, significantly boosting motivation and commitment.
CHANGING EXPECTATIONS Accenture reports that only 1 in 6 workers feel connected to their colleagues. Our own research at BoldHR indicates that 92% of respondents believe that leaders need to show more personal care. CEOs and senior leadership will struggle to fulfill these needs due to their broad responsibilities. However, B-Suite leaders, with their closer connection to teams, are uniquely positioned to bridge this gap.
B-SUITE LEADERS CAN ADDRESS WORKLOAD ISSUES The B-Suite is uniquely positioned to address workload issues. Most of us think of workload issues as simply ‘too much work’. However, Hart and Staveland’s research identifies additional workload triggers: dullness, unrealistic expectations, disempowerment, and skill gaps. B-Suite leaders can address these challenges by aligning work with individual interests, instilling a sense of purpose, establishing realistic expectations, offering coaching, and advocating on behalf of their teams when workloads become overwhelming. The flow-on effects from a culture perspective are immense.
PSYCHOLOGICAL SAFETY Not knowing where you are going, if your work matters, or whether your job is safe is a huge culture ‘derailer’. B-Suite leaders play a crucial role in establishing psychological safety. Their attitudes, actions, communication, and support can alleviate concerns about the future, the importance of one’s work, and job security, fostering an environment where employees feel secured, valued, and empowered. In 2024, we can’t discuss culture without recognising the pivotal role and untapped potential of the B-Suite. It’s time to shift our focus away from senior leadership and start investing where it truly matters—your B-Suite leaders. They hold the keys to trust, career growth, connection, and care within your organisation. Ignoring their pivotal role could be costing you more than you think.
REBECCA HOUGHTON Rebecca Houghton, author of ‘Impact: 10 Ways to Level up your Leadership’, is a Leadership and Talent Expert and founder of BoldHR. Rebecca builds B-Suite leaders with C-Suite impact by working at a strategic, team and individual level.
Issue 82 I December 2023
9
LEADERS
DIGEST
20 Benefits of Gratitude
BY GREGG VANOUREK
EMBRACING GRATITUDE: TRANSFORMING LIVES THROUGH ANCIENT WISDOM AND MODERN SCIENCE It’s easy to take things for granted. We may appreciate things for a while, but, sure enough, we eventually start discounting them. The unhappy result is that we can go through long stretches of our lives without noticing the good things. The benefits of gratitude show up not only in hordes of modern scientific studies but also in centuries of shared wisdom. All the major religions encourage and celebrate gratitude. And many great spiritual teachers have been powerful exemplars of living with a grateful heart attuned to the wonders of creation.
20 Benefits of Gratitude in Our Lives Feeling gratitude has an astonishing number of benefits. Professor Sonja Lyubomirsky from University of California, Riverside and other researchers have found that gratitude can: 1. 1 Magnify good feelings. 2. 2
Improve our sense of wellbeing, happiness, and overall life satisfaction.
“ 3. 3
Source: Photo by Pavel Danilyuk on Pexel
10
Issue 82 I December 2023
If you want to find happiness, find gratitude. -Steve Maraboli, author
Lead to better mental and physical health, including lower blood pressure, better sleep, and a stronger immune system.
LEADERS
DIGEST
4. 4 Boost our energy and enhance our vitality.
13. 13 Help us become more forgiving.
5. 5 Bolster our capacity for optimism.
14. Enhance our sense of self-worth. (We feel more 14
6 Reduce negative feelings like anger, bitterness, 6. self-centeredness, envy, and greed—all of which inhibit our happiness—and curb our tendency to compare ourselves to others. 7 Lead to greater generosity, kindness, and 7. helpfulness (“prosocial” behaviours).
capable and confident when we realize how much others have done for us or how much we’ve accomplished.) 15 Reduce our tendency to complain and feel like a 15. victim since it focuses our attention on what we value and appreciate. 16 16. Help us maintain a broader and better perspective
8. 8 Help us form closer and better relationships with friends—and maintain them over time.
in which we can place our challenges in the larger context of abundance and privilege.
9. 9 Expand our social network, giving us access to more friends and greater social support while making it less likely that we’re lonely and disconnected.
17. 17 Address the problem of “hedonic adaptation,” in which we tend to grow rapidly accustomed to the things we wanted and got.
10. Affect our brains in positive and lasting ways, 10
18. 18 Help our children and youth. According to Source: Photo by Leslie Jones on Unsplash research, more grateful adolescents and college students show keener interest in school, do better academically, have better social relationships, and enjoy their educational experience more.
including an orientation toward enjoying it when other people thrive. 11. 11 Shift our attention away from negative emotions (e.g., fault, criticism, regret) and toward positive ones (e.g., benefit, abundance, joy), making it harder for us to ruminate.
19. Help people facing drug and alcohol addiction. 19 20. Provide some degree of protection against 20
12 12. Help us cope with and build resilience in the face
depression and suicidal ideation.
of stress and traumatic events.
“
…it is precisely under crisis conditions when we have the most to gain by a grateful perspective on life. In the face of demoralization, gratitude has the power to energize. In the face of brokenness, gratitude has the power to heal. In the face of despair, gratitude has the power to bring hope. In other words, gratitude can help us cope with hard times. -Dr. Robert Emmons, Professor of Psychology, University of California, Davis
What will you do to start bringing more gratitude into your life, starting today? This article was first published on greggvanourek.com
GREGG VANOUREK Gregg Vanourek is an executive, changemaker, and awardwinning author who trains, teaches, and speaks on leadership, entrepreneurship, and life and work design. He runs Gregg Vanourek LLC, a training venture focused on leading self, leading others, and leading change. Gregg is co-author of three books, including Triple Crown Leadership (a winner of the International Book Awards) and LIFE Entrepreneurs (a manifesto for integrating our life and work with purpose and passion).
Issue 82 I December 2023
11
LEADERS
DIGEST
Source: Designed by Freepik
The Pains and Rewards of Screen-Free Sundays BY JULIET FUNT
Screen Battles: Navigating Family Time with Screen-Free Sundays When my kids were younger and other parents complained about screen battles in their homes, I’ll admit I felt a little superior. We had less screen time than most, and I was proud of it. Then, the Chromebooks arrived. It was innocent enough at first, as I would guess was the very first Tribble on the Starship Enterprise. My three boys needed devices for homework and for watching shows on long international flights. But once the screens had a foothold and as naturally as records gave way to CDs, iPads replaced the Chromebooks and soon dragged smartphones in the door. It was then that any sense I had of “doing screens perfectly” concluded. We became just another family fighting over screens. Over the years, with the different ages and stages of our kids and our lives, we’ve taken a hill or two in the cause of fewer screens and then lost ground again in the battle. The effort has been complicated, naturally, by the slightly differing opinions of me and my husband as a couple (think one vote for Amish and one vote for Apple).
12
Issue 82 I December 2023
We’ve tried apps, rules, and lockboxes with varying levels of success and alignment. But one thing we have agreed on, in perfect unison, is actually my favourite screen rule: Screen-Free Sundays. Our Sundays start on Saturday night—if I remember to take all the screens away before everyone goes to sleep—or more often, they begin on Sunday morning, when I see the first child hunched over something illuminated and remind them, “It’s a screen-free day.” And they hand it over or put it away. (My oldest is a month from turning 18 but still begrudgingly complies.) This moment of surrender leads to a hum of grumbles but then ebbs into a kind of quiet—an extended moment of rediscovering the subtle direction of boredom and the low-dopamine options for the day. I must say that my own surrender into this groove is no less difficult. Weekends are good times for doing the budget and catching up on personal online tasks,
LEADERS
DIGEST
and I’m known for taking a weekday off in exchange for some weekend work. But the real story is that I have a high natural addiction to my own screens. As much as I believe in our Screen-Free Sundays, I also find them more than a little hard. That digital itch is always there, reminding me of the happy high to be found in a short search for hippie jewellery, looking up the right recipe for the perfect Key lime pie, or whispering to me seductively to watch Netflix. I do my best to ignore them all and follow my kids down into the realm of oldfashion fun. Inevitably, the magical moment happens. It’s so predictable and delightful that my husband and I end up sharing a knowing glance every time. They suddenly find the groove of real-world play. On a recent Sunday, I observed the following progression. Our boys, who lately have spent less time together as a unit, stood together as if they had just woken from a long sleep. And then one had an idea. First, they got a piece of foam board from the garage and threw playing cards at it, getting the cards to stick into the board from the force of spinning toward it. Then they embarked on an ambitious cooking project—pasta with two unique cream sauces (of their own invention), one chocolateinfused and the other jelly-based, neither of which was close to palatable. Still hanging out together, they then settled into a game of Apples to Apples. In keeping with the spirit of the day, during dinner, a playful moment arose. My youngest attempted to balance three blueberries atop the butter dish. My competitive eldest took on the challenge to best him. My husband, sensing an opportunity, playfully wagered, “Thirty dollars if you can stack five.” The game was on. The winner managed to balance seven blueberries, and then they went on to try stacking edamame beans, raspberries, and even batteries. The Sunday conversation around schedules, school events, and homework could wait another day.
These days are not perfect, and we make exceptions, but they serve a critical purpose in our building a life fully lived. There is a finite number of times that we will all be here, around this table together—and Screen-Free Sundays help me remember that fact so that I embrace every moment. They connect us and reawaken us to ourselves. Many people have asked me why we are so strict about screen time. (They read my writings and tend to miss the many, many ways we have become imperfectly typical as the boys left their kid years behind.) But the main reason we try isn’t about screen time per se. The main thrust of our boundary setting isn’t about the fear of the damage screens will do. It’s because of the opportunity costs. It’s because of the many lovely, subtle moments and deeper, passionate explorations that would all go untried if we didn’t force a little healthy emptiness. Screen-free days will not reshape our future. Rather, they serve as a gentle reminder that the real world will never fail to surprise and delight if we just give it a chance. This article was also published on Juliet Funt’s LinkedIn
JULIET FUNT Juliet Funt is the founder and CEO at JFG (Juliet Funt Group), which is a consulting and training firm built upon the popular teaching of CEO Juliet Funt, author of A Minute to Think.
Issue 82 I December 2023
13
LEADERS
DIGEST
The Digital Transformation of Money is Now Source: Vector image is from freepik.com by @freepik
BY REDZA ARBEE
NAVIGATING THE DIGITAL MONEY LANDSCAPE In a world where ignoring Bitcoin is no longer an option, understanding its impact on our global monetary system has become crucial. Each of us, knowingly or not, already has a Bitcoin strategy – and choosing to overlook it is simply a major disservice to your stakeholders.
The Global Context: Understanding Our Volatile World We are arguably living in unprecedented times and are faced with innumerable existential challenges that are happening at the same time making it even more difficult to fully grasp or appreciate. This may be part of the reason why conversations around VUCA (volatile, uncertainty, complex, and ambiguous) have
14
Issue 82 I December 2023
been frequent of late as we attempt to understand and contextualise these challenges. In this regard, we are all encumbered by issues relating to the conflicts in Europe, the war in the Middle East, the tensions in Asia, the coups in Africa, and so on. Further, many of us are engaged in our daily discussions on the opportunities and threats of artificial intelligence and the potential existential crisis it may bring to our species. On top of that, we are constantly reminded each time we eat or buy groceries that the effect of inflation is very real and far from over. I could go on and highlight a number of other challenges from the global debt burden, the central banks playing red light / green light with interest rates, the looming recession, the layoffs that have just begun, the zombie companies, and more. Notice that I didn’t even mention the pandemic and the aftereffects of the global lockdowns and vaccine mandates…oops.
LEADERS
DIGEST
Just one of those things alone would have made our plates completely full in the now-yesteryears. Surely our lot in corporate and political life is unenviable. Now you may be thinking, “enough with the anxiety, what does all that have anything to do with Bitcoin?” Well, the simple answer to that is…everything. The question is, how? These issues are more than just news headlines; they directly impact our financial stability and future. This backdrop sets the stage for a deeper exploration of Bitcoin, a technology at the intersection of finance, technology, and society.
Centralised vs. Decentralised Money: A Critical Comparison
Bitcoin: More Than Just a Cryptocurrency
Helping people gain perspective around all this is part of the reason why I wrote my book. You’ve probably heard of things like cryptocurrencies, central bank digital currencies (CBDC), altcoins, NFT or non-fungible tokens, Web3, and so on. But are you aware that we probably wouldn’t be talking about any of them if Bitcoin didn’t exist? Also, why are there a number of highly vitriolic people out there who loudly proclaim that Bitcoin is a scam, it will go to zero, and it is nothing more than a Ponzi scheme, while at the same time and on the polar opposite of that spectrum, there are others who also loudly proclaim that Bitcoin adoption is inevitable, it is the very thing that can fix our broken monetary system, and Bitcoin can even potentially usher in a new golden age for our civilisation? Arguably, there has never been a more divisive stance on a piece of technology that has ever been invented.
Bitcoin is not just another financial tool; it is a response to the global need for a stable and decentralised monetary system. As I was doing research for my book (I wanted to help anyone understand blockchain from the perspective of Bitcoin’s use cases and its network), I discovered that the best way to understand Bitcoin is to ask a single fundamental and often overlooked question, and that question is: “What is money?” That question led me down a rabbit hole that goes beyond technology, macroeconomics, finance, monetary systems, and even philosophy. Anyone with eyes and half a mind can easily see that the world right now is standing on a dangerously precarious precipice. Only a thin thread is left, helping to securely hold us in place. That thread represents those of us present who are burdened with a task that can ultimately determine the very fate of our species. If only that was a hyperbole because I’ve not been known to have a flair for being dramatic. In the foreword by Datuk Dr. Mohamed Arif bin Nun, in my book, he shared a thought-provoking question that all of us will have to answer, whether we are aware of it or not. That question is, “should someone have control of money or should no one?” For the critical thinkers amongst us, we can clearly see how that is at the core of the true battle that is going on in the world right now.
The difference between centralised and decentralised money is at the heart of the Bitcoin debate. Centralised currencies, controlled by central banks and governments, are susceptible to inflation, political influence, and financial surveillance. In contrast, Bitcoin offers a decentralised alternative, free from these constraints, promising more financial freedom and stability.
The Future of Money: Embracing Digital Currencies As the world gravitates towards digital currencies, understanding and adapting to these changes is not optional; it’s essential. This is not just about staying current; it’s about safeguarding our financial future as well as understanding what individual sovereignty really means for each of us. Every individual, business, and nation must develop a Bitcoin strategy that goes beyond mere investment. It’s about understanding the risks and opportunities of digital currencies and making informed decisions that align with our goals, values, and the very idea of human rights.
Issue 82 I December 2023
15
LEADERS
DIGEST
For those of us who take accountability and responsibility seriously, it is incumbent upon us to take ownership of the situation and make sense of things to figure out the truth for ourselves. The time now is beyond critical; each of us will need to make a conscious decision and decide for ourselves how we plan to respond. For example, what is the difference between centralised and decentralised money, and how are they enabled? Why are major global banks accelerating the development of their own digital currency, and should we not have transparent and public discourse on its technology architecture? What are the real threats of centralised money, especially when combined with digital IDs? What will all this mean for you, your financial well-being, and your very freedom? All this begins with a clear understanding of the technology as well as the very concept of money itself.
The Dark Side of Centralised Digital Currencies: Surveillance, Control, and the Threat to Personal Freedom In terms of threats, we need to be aware that centralised money can literally bring about the stuff that we’ve only previously seen in movies and shows like “Black Mirror” on Netflix. The idea of privacy will completely end with a level of financial surveillance that can track and analyse what and how you spend “your money,” that would make you think twice before you make any transactions. Those who control the centralised money can also put an expiration date on “your money” so that you will be forced to spend within a given timeframe, making savings virtually impossible. This technology will also make it possible for those in control to determine where you spend “your money” and on what items; this refers to the restricted fungibility of “your money.” When combined with digital IDs, the next step will be to enable a social credit system to manage the behaviour of the population to such a degree that would make any tyrant from antiquity blush. These are but a few of the dangers that we need to be aware of and demand open and public discourse and debate to ensure the rights and freedoms of the populace are protected and sacrosanct. 16
Issue 82 I December 2023
Conclusion: The Imperative of a Bitcoin Strategy Towards this end, every single country, business, and individual will need to develop their own Bitcoin strategy and understand why a decentralised money can counter those threats I’ve mentioned above. For those with means, it may be strategic to organise a taskforce and develop your own plan of action. Will you approach acquisition as part of your treasury, asset allocation, or will you look at it from the perspective of risk mitigation? How will your organisation take the initiative and evolve from a strategic and operational standpoint when there is global adoption of digital currencies? Will you look into identifying investment and strategic partnership opportunities within the Bitcoin startup ecosystem? Are you aware of any sources of sustainable energy including excess energy, wasted energy, and stranded energy, that you can monetise through Bitcoin mining projects? These are all crucial and critical questions that need to be thoughtfully addressed. Failing this will open up a Pandora’s box of risks that will affect you and those closest to you. The journey into understanding the world of Bitcoin and digital currencies is not just a financial decision; it’s a strategic move towards a more stable and equitable future. By educating ourselves and actively participating in this digital transformation, we can better navigate the challenges and opportunities that lie ahead. REDZA ARBEE Redza Arbee is a digital transformation professional with over 17 years of experience across various industries and organizations, including finance, technology, and the public sector. His passion for understanding the global monetary system and his extensive knowledge in digital transformation led him to write the book “The Digital Transformation of Money: A Primer on Why Bitcoin Matters and How it Works.” Throughout his career, Redza has led various digital transformation initiatives across different industries from strategy development, policy recommendations, to digitalization projects. At Khazanah Nasional, Malaysia’s sovereign wealth fund, Redza developed a digital adoption framework as part of their digital transformation strategy as well as worked on their cloud solutions deployment initiatives. There, he also gained valuable insights into the intricacies of the financial industry, providing context for his writing in this book. At the United Nations, Redza laid the partnerships groundwork for the technology innovation lab (UNTIL) in Malaysia, while exploring ways to accelerate the adoption of sustainable development goals through the application of technology.
LEADERS
DIGEST
A C
T
2 I
0 V
2 I
3 T
I
E
S
Issue 82 I December 2023
17
LEADERS
DIGEST
18
Issue 82 I December 2023
Thank you
LEADERS
2023
DIGEST
Issue 82 I December 2023
19
Source: Image by starline on Freepik
BUILDING LEADERS TO MAKE A DIFFERENCE TO OUR SOCIETY AND STATE
LEADERSHIP INSTITUTE OF SARAWAK CIVIL SERVICE KM20, JALAN KUCHING SERIAN,SEMENGGOK, 93250 KUCHING, SARAWAK. 082-625166
082-625766
info@leadinstitute.com.my
www.leadinstitute.com.my