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The Scotia Premium Money Market, Fixed-Income and Growth Funds are distributed by Scotia Investments Jamaica Limited, a corporate entity separate from, although owned by, The Bank of Nova Scotia. Commissions, trailing commissions, management fees and expenses may be associated with mutual funds or unit trust investments. Important information about the Scotia Premium Money Market, Fixed-Income and Growth Funds are contained in the Funds’ Offering Circulars. Copies are available from Scotia Investments branches and Investment Advisors and should be read carefully before investing. Share values and investment returns for the Funds may fluctuate. Past performance is not indicative of future performance. Investments in Scotiabank mutual funds and unit trusts are not guaranteed, and are not insured by the Jamaica Deposit Insurance Corporation (JDIC) and are not guaranteed by The Bank of Nova Scotia or its affiliates. Residents of Canada and US persons are not eligible to invest in this Fund. *The Fund may refuse purchase orders from clients in certain circumstances.
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table of contents
Page 7
Page 15
Business Highlights Trending
Economy contracts during October-December period — PIOJ
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Page 10
Jamaica Stock Exchange Report
Page 18
Leadership Matters:
– Friday March 1st 2013
What The Most Successful Leaders Do Daily
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Page 11
Trinidad and Tobago Stock Exchange Report
Page 19
The Key in a successful CEO – Optimism?
- Friday, 01 Mar, 2013 .......................................................................................
Page 12
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Page 20
Jamaica Economic Indicators
Top 3 Tips For Better Time Management
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Businessuite Magazine
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table of contents
HR +
employment
Page 21
Are you an Extravert or an Introvert And Is your work in synchrony with your personality?
NEWS Local & Regional
Customer + Service
Page 16
Page 23
“Employee Engagement” a vital component of any human resource strategy. Real Estate
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Is Jamaica’s Housing Sector in Trouble? Collusion to restrict the supply of houses to inflate prices? Auto
Page 29
Magnificent Machines: technology
Page 28
8 Fast And Sexy Cars To Debut At The 2013 Geneva Motor Show
Inside the Google-Samsung Tussle for Future of Mobile. 4
Businessuite Magazine
Editorial
All Hands On Deck The call by private sector leaders to hold the Government accountable to ensure that the required fiscal and administrative plans are fully administered and that Jamaica must never have to again call for a JDX or NDX are all commendable. But who is going to bell the proverbial cat? Who is going to take the responsibility to draw them up and levy the required punishment for failure to do what is required. Nobody has stepped forward nor has any group offered leadership in this regard. The truth is holding this and any Government to task and punishing them is easier said than done and we all know this. It is for this precise reason why we are where we are today. Over the years private sector and public companies with massive cash surpluses have been raided by the Government to pay the price of bad decisions made by no more than two people, the Prime Minister and the Minister of Finance. Why private sector leaders have allowed this to continue is still a mystery. The apparent or real dependence on the Government for favors and handouts has been cited as the reason for this sterile response to Government bad decisions.
Publisher and Editor in Chief: Aldo Antonio aldo@blackslateholdings.com
When the exchange rate was at 5:50 to one US$ there was weeping and wailing, doom and destruction was predicted as the country could not survive at that exchange rate. Well its now 98 to 1 in the open market and 100 to 1 in the black market and guess what… we are still here doing business and for some of us still making massive profits. How do you explain this is beyond me?
Advertising Sales businessuitemagazine@gmail.com
Time For A Real Leadership Summit CEOs for small, medium and large private sector companies are today wondering how they’re going to lead their organizations in this environment going forward. Larger more profitable companies can afford to employ analyst and other such experts to guide them in this process. CEO ‘s running medium and smaller companies by and large do not have this resource and are forced to rely on the scraps of information and insight they pick up on a daily basis. Ceo’s for any size company have a critical responsibility for the overall direction and successful operation of all business units within their organizations. They must think innovatively about how their companies can create sustainable business value. By its nature, corporate leadership involves a complex set of issues that demands a certain cross-unit expertise, which is critical for companies’ survival in these turbulent times. We are in very challenging times. However, out of adversity arises opportunities and primarily for that reason we know it’s extremely important to engage CEOs of companies of all sizes in meaningful discussion and dialogue on the way forward. A CEO Summit at this time will provide one of the best mediums through which all stakeholders can be informed about the measures companies are effecting to ride out the financial crisis and to emerge stronger and better focused. Changes are inevitable in any environment; and it takes strong and effective leadership to enable companies to overcome the hurdles brought about by the rapidly changing economic climate. We are advocating for CEOs of all company sizes to share their corporate priorities for the 2013-2017 periods and engage each other in their strategic plans over this period. It is only when all hands are on deck helping each other that we can all make it through. Businessuite Magazine
Credits: Consultant Editors Dr. Anita Davis-DeFoe, Andrew J Skerritt
Executive Editor: Michael Dixon Michael@blackslateholdings.com Editor: Damian Wilson Subscription and Distribution Lionel Johnson
Graphic Artist: Miguel A. Rowe Photo credits: Sourced from the internet and contributed Social Media CLICK Digital Agency
Businessuite is your source for information, news and tools on starting, running and growing your business. We know your time is valuable and scarce, so we take the time to find, create and present all the information that will be relevant to the success of your business. Businessuite Online, Businessuite Digital, Businessuite Magazine, Businessuite Today, Businessuite Minute and Businessuite News Channel are owned and operated by Blackslate Media Group. Info: 876-631-4505 (o) or 876-280-9192 (m) 876-458-3253 (Mobile) --------------------------------------------------------------------------------Publishers: Businessuite News Centre A division of the Blackslate Media Group Silicon Mountain Mandeville Jamaica For all information 876-631-5418 (Kingston Office) 876-458-3253 (Mobile) 876-631-4505 (Mandeville Office) 876-280-9192 (Mobile) michael@blackslateholdings.com OR email blackslateholdings@gmail.com -----------------------------------------------------Blackslate Media Group Ltd, Silicon Mountain Mandeville Jamaica 876-631-5418 (Kingston Office) 876-458-3253 (Mobile) 876-631-4505 (Mandeville Office) 876-280-9192 (Mobile) To learn more about Blackslate go to www.blackslateholdings.blogspot.com aldo@blackslateholdings.com
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Business Events M a r c h 2013
Thursday - Mar 14th, - 11:00 a.m Jamaican Teas Limited Annual General Meeting Location
Knutsford Court Hotel,
11 Ruthven Road, Kingston 10 ............................................................................
Tuesday - Mar 19th, 9:00 a.m Thursday - Mar 07, - 8:30pm friday - Mar 08, - 5:00pm
AMG Packaging & Paper Company Limited Annual General Meeting Location
MIND’S PUBLIC SECTOR LEADERSHIP CONFERENCE 2013 LEADERSHIP IN ACTION: SUPPORTING THE VISION, ENGENDERING TRANSFORMATION
9 Retirement Crescent, Kingston 5 ............................................................................
Location
JAMAICA COMPUTER SOCIETY MEMBERS MEETING
Management Institute for National Development (MIND)
Knutsford Court Hotel, 11 Ruthven Road, Kingston 10 Contact: 927-1761, 977-4311 marketing@mind.edu.jm ..........................................................................
Wednesday - Mar 13th, 2013 - 8:00pm Avaya Evolutions Expo Location
Jamaica Pegasus Hotel, 81 Knutsford Boulevard, New Kingston www.avaya-evolutions.com ..........................................................................
Wednesday - Mar 13th, - 10:00a.m Honey Bun (1982) Limited Annual General Meeting Location
The Knutsford Court Hotel,
11 Ruthven Road, Kingston 10, ............................................................................ 6
Thursday - Mar 21, 2013 - 6:00pm
Location
Lundth Suite, Hotel Four Season,
18 Ruthven Road, Kingston 10, Jamaica www.myjcs.com 325-2301 or 843-7923 inform@myjcs.com ............................................................................
Thursday - Mar 21, 2013 - 6:30pm JCC 31ST ANNUAL DINNER AND AWARDS CEREMONY Location
The Jamaica Chamber of Commerce
Jamaica Pegasus Hotel, 81 Knutsford Boulevard, New Kingston 876 379 3507 ............................................................................
Thursday - Mar 21st, - 5:00 p.m FirstCaribbean International Bank Limited Annual General Meeting Location The Garrison Room,
Hilton Barbados Resort, St. Michael, Barbados .......................................................................... Businessuite Magazine
Trending Jamaica economy shrinks in Q4 — PIOJ
trending
Now
Jamaica’s Most Powerful home grown Brands.
BUSINESS HIGHLIGHTS TRENDING WHY THE GOVERNMENT STILL RELUCTANT IS MOVE OFFICES DOWN TOWN? Prime Minister, the Most Hon. Portia Simpson Miller is welcoming investments in the downtown Kingston area. The Prime Minister, who was touring the new Digicel Headquarters located on the waterfront earlier Friday, March 1, described the area as a prime location for investment. “The more investments we get downtown Kingston and in Jamaica, the better it will be for all of us,” Mrs. Simpson Miller told JIS News. Published Friday, March 1 2013
The Government is to give increased tax relief to business operators who move their bases into downtown Kingston in the hope of bringing life back to the oncevibrant financial district. Yesterday, Finance Minister Audley Shaw told The Gleaner that already one major company is planning to invest heavily in downtown. “We do have one major private company that is going into downtown Kingston and it will be building a twin-tower down there,” Shaw said. “By next year, cement should be pouring.” The Bruce Golding administration has repeatedly said it is on a drive to attract Businessuite Magazine
businesses back to downtown Kingston and, on Monday, the Cabinet approved a number of initiatives for operators. Published: Friday | September 11, 2009
KINGMAKERS AND PUPPET MASTERS – WHO IS REALLY IN CHARGE OF THE GOVERNMENT? Kingmaker is a term originally applied to the activities of Richard Neville, 16th Earl of Warwick — “Warwick the Kingmaker” — during the Wars of the Roses in England.[1] The term has come to be applied more generally to a person or group that has great influence in a royal or political succession, without being a viable candidate. Kingmakers may use political, monetary, religious, and/or military means to interfere in the succession. They may also be assigned as Minister of State without Portfolio.
IS THE GOVERNMENT IGNORING BUTCH STEWART? Since the beginning of the year, Stewart has been sharing ideas drawn from his vast experience as the Caribbean’s leading hotelier to help spur Jamaica forward in 2013.
CASH IS KING Business owners advised to cut cost and profit margins to move stagnant inventories to raise cash. Used car dealers concerned the sector could take a major hit as a result of the changes to the taxes paid at the island’s ports are advised to cut cost and profit margins to move stagnant inventories to raise cash.
IN ADVERTISING SEX SELLS? Does Sex Really Sell And If So, Why AND What you can learn from these local and international brands. Simply put, sex in advertising is the use of sexually provocative or erotic imagery (or sounds, suggestions and subliminal messages) that are specifically designed to arouse interest in a particular product, service or brand. Typically, sex refers to beautiful women (and increasingly, handsome men) that are used to lure in a viewer, reader or listener, despite a tenuous a non-existent link to the brand being advertised.
Jamaica’s Most Powerful home grown Brands. Brand Jamaica is powerful but not all positive. America is opportunity; London, history; Africa, feral society; Jamaica, easy spirit. These are powerful brands, but do not 7
trending readily attach to products or services. Incidentally, I wonder why so many local bodies are “Jamaica” this or that. Are we insecure? They do no business abroad yet it’s “Jamaica Bus Company”. Trust me, no one else will claim it! Reggae is our emanation, uplifting yet unpredictable. Despite this, some brands transcend. Sandals is our best service brand - thought, work, controlled environment with affected casual tinctures well delivered. As Baygon is bug spray, Sandals will soon mean holiday. Grace is an exciting brand and has been “passing for white” in major markets while nurturing roots. I did a blind test with English friends - parlour games - Grace juice won. Our mango, pineapple, yam is not branded. It says we are mere gatherers, not producers with a brand to imprint on a market. Grace brand says: “We will be in the market come hell or high water - trust us!” Copy them! Mr Wehby, do extend your tough standards to fruit and root crops; manufacture one quality detergent and toilet roll in the UK and USA - a winner. We know the profits come back to Harbour Street. I like your vision!
Jamaica’s Future Lies In Production For Export. True Or False? JAMPRO must do the research, foreign trade sign the treaty and tell us what, where; give details. We must examine gourmet items as escargot (snails) and spring chicken (frogs’ legs) - no praedial larceny. We must also manufacture in the big markets. Our patty makers in the USA do not create jobs here but a “tuups” fall on us. We do not need 100 per cent as if we get many 10 per cent, we will be way ahead. Banks must lend money in the diaspora as they too bawl for lack of capital. Invest abroad from your HQ here. A one per cent niche there can create better profits, better products and many jobs here.
Made In Jamaica “Do as I say not as I do” private sector The Buy Jamaican Campaign: Supporting Local Industry. Since 2004, the JMA has 8
partnered with the National Commercial Bank (NCB) Jamaica Limited to promote the ‘Buy Jamaican…Build Jamaica’ campaign, in an effort to boost the local manufacturing sector. The goal of this Campaign is to encourage the support of high quality local products and to instil pride in producers and consumers as it relates to brand Jamaica. It is also geared towards exposing Jamaicans to inter-linkages within the economy and how these can be advanced through their support of local products.
Celebrity Endorsements – Can These people Really Sell Your Products? There are a number of reasons why celebrity endorsements in advertising are so common. A celebrity endorsement can help build trust with customers and potential customers, increase the chances of the brand being remembered and attract a new type of audience. Endorsements also may increase the consumer’s desire for a product. This is often achieved by implying that the particular celebrity is successful, talented or attractive at least partly because of the product. Celebrity endorsements in advertising are a common tool among manufacturers of retail products. There are a number of reasons for this, but one of the most important is credibility and trust. Many people hold certain celebrities in high regard, so a celebrity endorsement of a product instantly increases the amount of trust the consumer has in the brand. This can sometimes work against the brand, however, if the celebrity starts to receive negative press.
Debt programme necessary, effective, but insufficient, says CaPRI
emphasised that the debt problem had to be dealt with, even as the Government explores opportunities for economic growth.
WE HAVE YOUR BACK….. NCB “NCB is aware that the current economic climate has created financial challenges for some of our customers. We have seen this demonstrated in the inability of some to meet their debt obligations in the usual manner,” said Audrey Tugwell-Henry, senior general manager of NCB’s retail banking division.”We take our role as financial partner very seriously, and as such, have embarked on a campaign to assist our customers with the management of their loan and credit card debts. We want to use this opportunity to let them know that they are not alone; we are here to help and are prepared to discuss their individual situations and identify the best solution for them,” she said. Tugwell-Henry said the bank will deal with customers on a case-by-case basis over the duration of the programme, which runs up to May 31, 2013.
Jamaica economy shrinks in Q4 — PIOJ JAMAICA’S economy plunged further into recession in the 2012 fourth quarter, contracting by 0.6 per cent year over year, but the country should see some recovery over the January to March 2013 period, said the Planning Institute of Jamaica (PIOJ). The December quarter performance follows GDP declines of 0.1 per cent, 0.2 per cent and 0.2 per cent over the first three quarters of 2012, a background against which the planning agency is projecting economic contraction of 0.3 per cent for last calendar year.
“Doing nothing is unsustainable, some action had to be taken, whether this programme or some other programme. The programme is necessary, the programme is effective as it contracts the fiscal deficit in year one by close to two per cent of GDP (Gross Domestic Product),” said King as he Businessuite Magazine
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Stocks + Investing + money markets
Jamaica Stock Exchange Report – Friday March 1st 2013 • In Friday’s trading session the following reflect the movement of the JSE Indices: • The JSE Market Index declined by 89.63 points (0.11%) to close at 83,959.30. • The JSE Select Index declined by 5.35 points (0.25%) to close at 2,146.80. • The JSE All Jamaican Composite declined by 157.78 points (0.20%) to close at 78,256.25. • The JSE Cross Listed Index by 0.00 points (0.00%) to close at 857.35. • The JSE Junior Market Index declined by 5.14 points (0.87%) to close at 587.34. • The JSE Combined Index declined by 116.09 points (0.14%) to close at 85,222.70. • The JSE US Equities Index by 0.00 points (0.00%) to close at 71.43. Overall Market activity resulted from trading in 12 stocks of which 4 advanced, 5 declined and 3 traded firm. Market volume amounted to 1,068,066 units valued at over $5,817,124. Jamaica Money Market Brokers Limited 8.75% was the volume leader with 790,000 units (73.97%) followed by Jamaica Broilers Ltd. with 109,200 units(10.22%) and Scotia Group Jamaica with 62,317 units (5.83%).
Stocks Advancing: Security Volume Close Price ($) Change ($) Carreras Limited 4,200 53.02 0.01 Pan-Jamaican Investment Trust Ltd. 109 50.50 0.21 Sagicor Life Jamaica Limited 19,121 7.09 0.04 Scotia Group Jamaica 62,317 18.95 0.23
Stocks Declining: Security Volume Close Price ($) Change ($) GraceKennedy Ltd. 300 49.50 -0.01 Jamaica Broilers Ltd. 109,200 4.50 -0.03 Kingston Wharves Ltd. 12,083 5.40 -0.10 Mayberry Investments Ltd 2,550 2.21 -0.01 National Commercial Bank of Jamaica Ltd. 49,000 19.03 -0.51
Stocks Trading firm: Security Volume Close Price ($) Jamaica Money Market Brokers Limited 8.75% 790,000 3.25 Jamaica Money Market Brokers Ltd. 10,986 7.20 Sagicor Investments Jamaica Limited 8,200 14.20 • The JSE Index comprises all Ordinary Companies. • The JSE All Jamaican Composite Index comprises Jamaican companies only. • The JSE Select Index comprises the JSE’s 15 most liquid Securities. • The JSE Cross Listed Index comprises of foreign companies only. 10
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Stocks + Investing + money markets
Trinidad and Tobago Stock Exchange Report - Friday, 01 Mar, 2013 Overall Market activity resulted from trading in 12 securities of which 3 advanced, 2 declined and 7 traded firm. Trading activity on the First Tier Market registered a volume of 131,130 shares crossing the floor of the Exchange valued at $986,087.55. ANGOSTURA HOLDINGS LIMITED was the volume leader with 69,130 shares changing hands for a value of $539,210.05, followed by SAGICOR FINANCIAL CORPORATION with a volume of 20,140 shares being traded for $138,966.00. NATIONAL COM-
MERCIAL BANK JAMAICA LIMITED contributed 15,800 shares with a value of $17,480.00, while PRESTIGE HOLDINGS LIMITED added 10,215 shares valued at $94,488.75. CLICO INVESTMENT FUND enjoyed the day’s largest gain, increasing $1.57 to end the day at $22.12. Conversely, NATIONAL COMMERCIAL BANK JAMAICA LIMITED suffered the day’s greatest loss, falling $0.09 to close at $1.11.
Mutual Fund Market, posting a volume of 3,311,078 shares valued at $73,238,545.60. CLICO INVESTMENT FUND advanced by $1.57 to end at $22.12. FORTRESS CARIBBEAN PROPERTY FUND remained at $5.00. PRAETORIAN PROPERTY MUTUAL FUND remained at $4.00. The Second Tier Market did not witness any activity. FNCU VENTURE CAPITAL COMPANY LIMITED (SUSPENDED) remained at $1.00. MORA VEN HOLDINGS LIMITED remained at $15.65.
CLICO INVESTMENT FUND was the only active security on the
Stocks Advancing: Security Volume Closing Quote ($) Change ($) CLICO INVESTMENT FUND 3,311,078 22.12 1.57 REPUBLIC BANK LIMITED 400 108.17 0.02 SCOTIABANK TRINIDAD & TOBAGO LIMITED 1,485 66.51 0.01
Stocks Declining: Security Volume Closing Quote ($) Change ($) NATIONAL COMMERCIAL BANK JAMAICA LIMITED 15,800 1.11 -0.09 JAMAICA MONEY MARKET BROKERS LIMITED 3,000 0.60 -0.05
Stocks Trading firm: Security Volume Closing Quote ($) ANGOSTURA HOLDINGS LIMITED 69,130 7.80 SAGICOR FINANCIAL CORPORATION 20,140 6.90 PRESTIGE HOLDINGS LIMITED 10,215 9.25 NATIONAL FLOUR MILLS LIMITED 8,000 0.60 ONE CARIBBEAN MEDIA LIMITED 1,560 16.14 SCOTIA INVESTMENTS JAMAICA LIMITED 1,100 1.94 ANSA McAL LIMITED 300 66.65 In Friday’s trading session the following reflect the movement of the TTSE Indices: * The Composite Index declined by 3.27 points (0.30%) to close at 1,084.79. * The All T&T Index advanced by 0.11 points (0.01%) to close at 1,751.74. * The Cross Listed Index declined by 0.80 points (1.45%) to close at 54.33. * The Composite Index comprises all Ordinary companies. * The All TTSE Index comprises Trinidadian companies only. * The Cross Listed Index comprises companies originating outside of Trinidad & Tobago. Businessuite Magazine
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Stocks + Investing + money markets
Jamaica Economic Indicators tory of low growth, high inflation, low levels of productivity and declining external competitiveness. The persistence of these factors has been associated with large fiscal deficits over successive years which have resulted in high and unsustainable levels of debt. The size of Government’s debt service limits public investment that is needed to create the enabling environment for sustainable growth and development. The unsustainable debt level makes Jamaica more vulnerable to shocks and has eroded investor confidence.
T
here have been a number of important economic developments since we last met in November and particularly in the last few weeks. The National Debt Exchange was launched two weeks ago. On the same day, Parliament passed a set of tax measures, some of which will become effective in March. These developments complemented expenditure cuts announced the week before. Together, these actions paved the way for a conclusion of negotiations with the International Monetary Fund (IMF). A Staff Level Agreement was reached between the IMF team and the Jamaican authorities on 15 February which, subject to implementation of the remaining prior actions, paves the way for consideration of Jamaica’s programme by the IMF’s Board next month. Against the background of these recent developments, I will first briefly reiterate some of the objectives and key elements of the macroeconomic programme which will influence the direction of monetary policy in the near to medium term. Then, I will give a synopsis of some of the external and domestic economic developments in the December 2012 quarter which influenced both the outlook for the short term and the Bank’s policy stance. Of note, in the context of the current focus on fiscal consolidation, the Bank has included a special article on Fiscal Expenditure Multipliers and Economic Growth.
The Medium-term Macroeconomic Programme As we are all aware, Jamaica has had a long his12
There is an overwhelming case for reform in Jamaica. The debt/GDP ratio is now above 140%, growth has stagnated, productivity has declined, the deficit on the external current account has increased and gross international reserves have fallen close to the international benchmark of 12 weeks of goods and services imports. This is the context for the medium term macroeconomic programme which forms the basis for the recent agreement with the staff of the IMF. The central objective of the programme is to generate on a sustained basis meaningful economic growth over the medium term by removing the key economic bottlenecks of high debt and low competitiveness. In this regard, the programme is characterised by fundamental reforms, most of which are front-loaded. The Government has committed to a process of extensive structural reforms which should lead to increased efficiency in the use of public resources, the strengthening and stabilization of the macroBusinessuite Magazine
Stocks + Investing + money markets economic framework, higher levels of productivity in the economy and marked improvements in the country’s external competitiveness. These commitments will require the central government to exercise restraint in expenditure while enhancing its revenue collections to deliver a primary balance of 7.5% of GDP over the medium term. The achievement of this very challenging target will contribute to a significant reduction in the debt/GDP ratio. With the welcome success of the National Debt Exchange, interest costs for central government have been lowered and financing pressures have been relieved by pushing out debt maturities by several years. The resulting substantial reduction in Government’s appetite for debt will leave more resources for private sector investment and ultimately provide the basis for sustainable growth. Additionally, the structural reforms being undertaken by the Government will result in improvements in productivity and the business environment, thus creating the foundation conducive to private sector led growth and higher incomes over the medium to long term. The reduction in fiscal dominance arising from steadfast implementation of these measures will enhance the Bank’s ability to maintain single digit inflation. The Bank’s long-term inflation objective is to reduce the annual rate of price increases to levels that are enjoyed by our trading partners. The Bank will continue to conduct monetary policy within the framework of a flexible exchange rate such that orderly adjustments in the exchange rate are reflective of the economic fundamentals. Of these fundamentals one that is vital for raising overall economic growth and employment is the maintenance of a competitive exchange rate that will facilitate investment for export Businessuite Magazine
growth and the expansion of import substituting industries. With steadfast implementation of these measures, we will see a gradual rebuilding of net international reserves as the return of investor confidence should be accompanied by increased private and official inflows. It is anticipated that approval of the four-year Extended Fund Facility by the IMF Board and continued adherence to the medium-term economic programme will also encourage both foreign and domestic capital investments which should lead to the creation of increased employment. Against that background, I will now briefly outline some of the contents of the Quarterly Monetary Policy Report (QMPR).
Review of Developments in the December 2012 Quarter There was uncertainty in domestic financial markets during the December 2012 quarter. This against the background of the continuing negotiations between the Government and the IMF, which contributed to acceleration in the pace of depreciation of the Jamaica Dollar vis-à-vis the US dollar and a further reduction in the NIR. In spite of these developments, the outlook for inflation remained favourable, due to lower than expected international commodity prices and persistently weak domestic demand as well as the containment of inflation expectations. Against this background, the Bank maintained the rate on its 30-day certificate of deposit at 6.25 per cent for the quarter. Headline inflation was 2.6 per cent for the review quarter, in line with the average for the previous five
December quarters but below the Bank’s forecast range of 3.0 per cent to 4.0 per cent which was outlined in the QMPR for the September 2012 quarter. The deviation from forecast mainly reflected lower than anticipated international commodity prices as well as a lower-than-expected impact on domestic agricultural prices from the passage of Hurricane Sandy. In particular, there was an unexpected fall in fuel prices in the quarter and a slower than anticipated pass-through of the exchange rate depreciation. There was an increased pace of depreciation in the exchange rate for the December quarter primarily reflecting excess demand for foreign currency for portfolio purposes. Of note, the net demand for balance of payments current account transactions, that is, external trade in goods and services, declined during the quarter. However, there was a decline of US$131.7 million in the NIR to US$1 125.6 million at end-2012. Accordingly, at the end of the year, the Bank’s gross reserves amounted to US$1 980.8 million, representing 13.2 weeks of projected goods and services imports. In the context of the persistent weak external and domestic demand conditions, Jamaica’s real GDP is estimated to have registered a fourth quarter of contraction in the range of 0.0 per cent to 1.0 per cent. The impact of the passage of Hurricane Sandy on the domestic economy and the USA contributed to the estimated decline in economic activity in the quarter. The Bank estimates that there were contractions for all major industries with the exception of Construction and Finance & Insurance Services. Preliminary data for the agriculture sector indicate that continued on page 14
13
Stocks + Investing + money markets domestic crop production contracted by 14.9 per cent relative to an average quarterly expansion of 6.7 per cent for the preceding three quarters.
Foreign Exchange Trading Summary
Short-term Outlook
March 1st 2013 Buy Sell US$ 96.1920 97.1578 CAD$ 92.7022 94.6694 GBP$ 143.7493 147.3219
The Bank is expecting some recovery in the domestic economy in this quarter, albeit marginal, with growth projected in the range 0.0 per cent to 1.0 per cent. Given the forecast for the quarter, real GDP growth for FY2012/13 is projected in the range of negative 0.5 per cent to positive 0.5 per cent. The forecast is predicated on continued recovery in the global economy as well as favourable weather conditions. Domestic inflation is projected to fall in the range of 2.0 per cent to 3.0 per cent for the March 2013 quarter. This forecast is largely due to an expected moderating impact from persistently weak domestic demand conditions, partly associated with the generally tight fiscal stance. In this regard, the main inflationary impulses in the quarter are expected to emanate from imported prices, mainly oil, as well as annual upward adjustments in the domestic economy to service fees and contracts such as rent. Given the forecast for the quarter, the Bank’s forecast for inflation for FY2012/13 is unchanged in the range of 7.5 per cent to 9.5 per cent.
Monetary Policy Action With respect to monetary policy action, the Bank recently announced a 50-basis-points cut in its policy rate from 6.25 per cent to 5.75 per cent effective today. This decision was informed by the relative weakness in the economy, the implementation of a further large fiscal consolidation during fiscal year 2013/2014, expectations of a tempered economic expansion in the next fiscal year and an outlook that inflation, though possibly somewhat higher than current levels, will remain within single digits. This action is aimed at supporting a recovery in the economy without igniting inflation. Thank you. 14
YEAR USD VS JMD 1971 USD$1.00 = J$0.77 1972 USD$1.00 = J$0.77 1973 USD$1.00 = J$0.90 1974 USD$1.00 = J$0.91 1975 USD$1.00 = J$0.91 1976 USD$1.00 = J$0.91 1977 USD$1.00 = J$0.91 1978 USD$1.00 = J$1.41 1979 USD$1.00 = J$1.76 1980 USD$1.00 = J$1.78 1981 USD$1.00 = J$1.78 1982 USD$1.00 = J$1.78 1983 USD$1.00 = J$1.92 1984 USD$1.00 = J$3.94 1985 USD$1.00 = J$5.58 1986 USD$1.00 = J$5.50 1987 USD$1.00 = J$5.51 1988 USD$1.00 = J$5.51 1989 USD$1.00 = J$5.77 1990 USD$1.00 = J$7.24 1991 USD$1.00 = J$12.22 1992 USD$1.00 = J$22.99 1993 USD$1.00 = J$25.11 1994 USD$1.00 = J$33.29 1995 USD$1.00 = J$35.35 1996 USD$1.00 = J$37.25 1997 USD$1.00 = J$35.51 1998 USD$1.00 = J$36.65 1999 USD$1.00 = J$39.20 2000 USD$1.00 = J$43.08 2000 USD$1.00 = J$43.08 2001 USD$1.00 = J$46.08 2002 USD$1.00 = J$48.54 2003 USD$1.00 = J$57.93 2004 USD$1.00 = J$61.34 2005 USD$1.00 = J$62.50 2006 USD$1.00 = J$65.88 2007 USD$1.00 = J$69.06 2008 USD$1.00 = J$72.92 2009 USD$1.00 = J$88.49 2010 USD$1.00 = J$87.38 2011 USD$1.00 = J$86.08 2012 USD$1.00 = J$88.99
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ECONOMY CONTRACTS DURING OCTOBER-DECEMBER PERIOD — PIOJ Mr. Everton McFarlane Acting Director General, the Planning Institute of Jamaica’s (PIOJ)
T
he passage of Hurricane Sandy which resulted in total damage and losses estimated at $1.5 billion, combined with the slower than anticipated recovery of the global economy, impacted the overall performance of the Jamaican economy for the October to December 2012 period. Real GDP contracted by 0.6 per cent, resulting from a decline of 2.7 per cent in the Goods Producing Industry, as the Services Industries remained flat. This assessment was made by the Planning Institute of Jamaica’s (PIOJ) Acting Director General, Mr. Everton McFarlane, at the Institute’s quarterly press briefing today, Thursday, February 21, 2013. Details were provided on the performance of the economy for the 3rd quarter of the fiscal year as well as an update on the indicators of well-being and progress that track Jamaica’s achievements towards Vision 2030 Jamaica. Within the Goods Producing Industry, all industries registered declines — Agriculture (down 4.5 per cent); Mining & Quarrying (down Businessuite Magazine
11.0 per cent); Construction (down 1.5 per cent); and Manufacture (down 0.1 per cent). Within the Services Industry, Finance & Insurance Services registered an increase of 1.0 per cent, along with Wholesale & Retail Trade, Repair & Installation of Machinery (up 0.4 per cent) and Other Services (up 0.2 per cent). Transport Storage & Communication remained flat while all other industries recorded declines. Mr. McFarlane noted that there were declines in the Employed Labour Force. The total employed labour force fell by 700 persons to reach 1 088 200 compared with October 2011; and by 6 500 persons compared with July 2012. The unemployment rate increased to 13.7 per cent, up by 0.9 percentage point compared with the corresponding period in 2011. For the January–March 2013 period, it is expected that there will be recovery in most industries with GDP growth projected to fall within the range of 0.0% to 1.0%. Governance, Social and Environment Indicators
Under the Vision 2030 Jamaica-National Development Plan framework, two areas—Labour Force Quality and Security Status—were examined. Under Labour Force Quality, 23.7 per cent of the total labour force had vocational or professional certification, based on the quarterly labour force surveys for 2012. This represents an increase of 0.5 percentage point compared with 23.2 per cent in 2011.
With respect to Major Crimes, the overall downward trend in crime rates that began in June 2010 continued; 386 major crimes per 100 000 population were committed in 2012, from 394 per 100,000 population in 2011. The murder rate for 2012 was 40 per 100 000 population, down 4.1 per cent compared with 2011. This represents the third consecutive year in which both rates have declined.
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NEWS
NEWS Local & Regional DIRTY MONEY $.6b in suspicious transactions in T&T from 2011-2012 A whopping $638,844,310 in alleged “dirty money” transactions have reportedly passed through the country’s financial system over the past year, the 2012 Report of the Financial Intelligence Unit of Trinidad and Tobago (FIUTT) has stated. For the period October 2011 to September 2012, 258 Suspicious Transfer Reports (STRs) and Suspicious Activity Reports (SARs) were flagged by “supervised entities” and “banking institutions” which reported the highest alleged money laundering activity for the period under review, with 154 reports. The report also noted the highest suspicious activities took place between April and June 2012 when the highest amount of suspicious money totalling $2,393,548 entered the system. (Trinidad Express)
CLICO interest rate did not make sense British lawyer:
have invested in the insurance giant when questioned yesterday. Rodriguez-Seijas took the witness stand at the Commission of Enquiry into the failure of CL Financial and four of its subsidiaries. The enquiry, which is being held at the Winsure Building at Richmond Street in Port of Spain, is currently in its 11th evidence hearing. During cross-examination yesterday by junior counsel to the commission, British barrister Marion Smith, Rodriguez-Seijas was told that he was talking “nonsense” when questioned about the “mismatch” between the interest paid on deposits and the interest received from investments made by CLICO. Smith: You would certainly accept that the return on equity is a basic figure, a key indicator of the strength of a company, isn’t it?
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This year, the sector is already seeing significant activity, with 1,300 new vehicle sales recorded for January. In its Summary Economic Indicators Report released last month, the Central Bank noted new motor vehicle sales had increased by 13.3 per cent in the period January to September 2012, compared to the same period in 2011. The brand, he said, which is the number two selling brand in the country, is now showing signs of returning to the top spot. (Trinidad Express)
Rodriguez-Seijas: For an insurance company and particularly because the accounting standard in relation to insurance was not as prescriptive, I believe that a profit line is not as indicative of the performance of an insurance company. (Trinidad Express)
DESPITE being involved at varying levels in the audit of failed insurance company CLICO for over a decade, PricewaterhouseCoopers (PwC) director Dwayne RodriguezSeijas could not say if he would
ota Trinidad managing director Andre Baptiste said yesterday. Speaking on Thursday evening at the unveiling of the new RAV4 sport utility vehicle at the company’s Barataria showroom, Baptiste said the industry has seen an upward trend in the market year on year.
‘New car sales up’ New car sales are on the rise, Toy-
Food prices on the rise - TT Food inflation accelerated to 13.8 per cent in January from12.7 per cent in the previous month due to faster price increases on some items. The latest data from the Central Statistical Office on the Index of Retail Prices shows that vegetables increased to 27.6 per cent from 26.8 per cent in December, meat to 9.6 per cent from 8.5 continued on page 17 Businessuite Magazine
News
per cent, oils and fats to 2.8 per cent from 2.7 per cent, and milk, cheese and eggs to 0.9 per cent from 0.3 per cent.
Forbes told the BARBADOS BUSINESS AUTHORITY: “In the very near future we will know which brand we will be affiliated with.”
rooms, with five suites located on the former Aquatic pier and a sixth, the Carlisle Suite, on the sixth floor.
Headline inflation stood at 7.3 per cent in January, slightly up from 7.2 per cent in December 2012. On a monthly basis, headline inflation rose by 2.6 per cent in January following a decline of 0.8 per cent in December 2012.
However, he declined to give further details.
Extensive renovations have been carried out on the beachfront hotel, once a Holiday Inn, at Aquatic Gap.
Core inflation, which excludes food prices, slowed to 2.2 per cent from 3.1 per cent in December. There were slower price increases in most of the major components of core inflation including alcoholic beverages and tobacco (2.5 per cent), clothing and footwear (2.9 per cent), housing and utilities (0.1 per cent), recreation and culture (2.0 per cent), and hotels and restaurants (4.0 per cent).
Forbes, a hotelier with 20 years’ experience, said the refurbished property is “going through soft opening” as work is still being done in several areas.
(Nation News)
When completed, there will be 124
Costs related to health care and transportation rose faster in January by 6.1 per cent and 3.8 per cent, respectively. (Trinidad Guardian)
Aquatica may take top brand name - Barbados The former Grand Barbados hotel, reopened as Aquatica Beach Resort two months ago, may soon carry the name of an international hotel brand. That’s the word from general manager Christopher Forbes. Though not confirming that the hotel’s owners are having ongoing discussions with the Holiday Inn and the Radisson hotel chains,
Businessuite Magazine
17
Leadership
Leadership Matters: What The Most Successful Leaders Do Daily Dr. Anita Davis-DeFoe An International Organization and Leadership Development Solutionist
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eadership is a mysterious blend of managerial acumen, strategic vision, operational efficiency, performance management, tactical planning, emotional intelligence, and the capacity to inspire others to marshal all of their abilities in support of a common mission. Leadership is the nourishing ingredient which can ignite an organization to flourish, or stifle to the point that it languishes in a sea of mediocrity. For in the end, an organization may be housed in a beautiful facility; have the most current technology; even have sound policies, procedures and process management systems in place, but in absence of visionary transformative leadership which engages the people who perform the daily tasks, organizational results from both the financial and end results perspectives will suffer. Leadership is without question, a learned behavior that overtime can become a mode of operation for those who work constantly to strengthen their abilities to constantly redefine and execute an organizational mission with both efficiency and effectiveness. In today’s ever changing global marketplace where innovation, creativity and an organization’s ability to recognize and respond to change is paramount, leadership is becoming the definitive factor in organizational success, survival and sustainability. In the face of growing worker skill gaps and tal18
ent wars, organizational leadership which is unable to harness human capital to the fullest is destined to struggle. A leader’s ability to manage an organization tapping into his or her past experiences, unanticipated failures and solutions created in response and understanding the nuances that workers bring into the culture must be at the forefront of daily operations. Erika Anderson, in the book, Leading So People Will Follow, a Leadership Coach and popular Forbes blogger, cites six attributes that impactful leaders exhibit. These are “far-sightedness, passion, courage, wisdom, generosity, and trustworthiness.” Whether a leader in the public, private or NGO sector, and if concerned with elevating your leadership effectiveness, there are fifteen actions that the most effective leaders do daily:
Make Others Feel Safe to Speak-Up – Colleagues are often intimidated by the leader’s title and power. Effective and successful leaders avert attention away from themselves and instead encourage others to share their opinions. By creating opportunities for open dialogue, innovation can be better fueled.
Make Decisions
- Successful leaders are expert decision makers, either facilitating discussions amongst colleagues so that
a decision can be reached or they made a decision so that momentum can be maintained and results achieved.
Clearly Communicate Expectations – Great leaders are excellent communicators, and they clearly and consistently articulate organizational core values and mission, striving to ensure that their vision is properly translated and actionable objectives are successfully executed.
Dare People to Think – Truly successful leaders understand the mindsets, capabilities, interests and areas for improvement of their team. To foster the achievement of intended organizational outcomes and to support worker career development, these insight are used to encourage stretch goals. Thinking encourages learning, and learning can ignite team member’s interest in the organization’s work. Stay posted, I will share more strategies for elevating your leadership competency! Dr. Anita Davis-DeFoe is an organization and leadership solutionist, a thought leader, the author of three books. A new book, The Execution Factor: 99 Solutions That Can Ignite Organizational Performance, is slated for release July 2013. Visit her at www.sheleads2.com or email your leadership questions to dradefoe@sheleads2.com
Businessuite Magazine
Leadership
The Key in a successful CEO – Optimism?
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ave you ever wondered what is the key characteristic that make CEOs? Since it’s a position to which so many strive but few achieve, the answer must be an overwhelming yes! A new study by the Duke University’s Fuqua School of Business thinks it may have found the answer. The study reports that Chief Executive Officers, at least in the US, are more optimistic about life than members of the general population The study was conducted by Professors Manju Puri, Campbell Harvey and John Graham. The researchers analyzed 3,000 personality test responses to draw their conclusions. The completed results will be published in a paper called “Managerial Attitudes and Corporate Actions,” which will be published in an upcoming issue of the Journal of Financial Economics. The professors also found that the CEOs, besides being optimistic about life in general, were upbeat about the prospects of their businesses and were more willing to take risks than members of the general population. Those traits, in turn, influence companies’ financial policies and decisions, according to the paper. Businessuite Magazine
According to the personality test results, 80% of CEOs are what the researchers dub “very optimistic” people. That compares with only 65% of chief financial officers who are presumably less optimistic than CEOs because they have to deal with the nitty gritty of companies’ finances. Though the paper doesn’t say what percentage of the lay people considers themselves optimistic, they note that the CEO and CFO numbers are well above the mean. “The executives are a vastly different breed than the average person,” said International Business Professor Campbell Harvey. The study also looked at how finance executives rate their CEOs. “Finance executives go so far as to say that their CEOs are more optimistic about almost everything in life,” says Finance Professor Puri, “even beyond their outlook on business prospects.” The researchers also found that companies tend to attract CEOs who reflect a firm’s “personality,” including risk aversion and optimism. In turn, company policies are closely related to executives’ personality. That includes traits like risk tolerance and outlook on
future financing. A risk-tolerant CEO might initiate more mergers and acquisitions, for instance, according to the research. Adds John Graham, who is also a finance professor at Fuqua, risk-tolerant CEOs initiate more mergers and acquisitions because “they are more content to ‘roll the dice,’” on business deals. The researchers also evaluated how CEO personality traits affect pay structure. The study looked at risk-taking versus non-risk-taking CEOs, and at CEOs who are patient and those who are impatient. Risktaking CEOs are much more likely to be paid with a greater share of their package made up of stock, options and bonuses, and less in the form of salary. Also CEOs who are impatient tend to earn a greater share of their compensation in the form of salary, than do patient CEOs. The researchers concluded that it costs companies more to compensate risk-averse CEOs because the companies have to pay more in salary and go the extra mile to encourage their chiefs to take on expensive investment projects that have more risk. Ultimately, firms match their CEOs’ personality traits in a way that cuts the cost of incentive compensation. BM 19
time management
time
Top 3 Tips For Better Time Management
management First, delegate, delegate, delegate. Second, focus on your personal health and the business’s health. Finally, learn the technology of today.
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mall businesses are strapped for time nearly as much as they are strapped for cash these days. One expert offers advice on how to better manage time and improve the bottom line.
First, delegate, delegate, delegate. Most small businesses are just that – small. An owner, a small office staff and maybe a sales person or two. In most cases the owner does the bulk of the day to day work, but that isn’t necessarily the best option. “Empower your Employees,” said Mike Pugh, eVoice Small Business Expert. “Learn to let go of the day-to-day tasks that are taking up your time to focus on the big picture. Not only does this help you focus on larger business issues but empowers your employees by taking on tasks normally assigned for the boss. This challenges your employees and allows them to gain more responsibility ultimately freeing up your time.” Going along with delegation, SMB owners should know when a task cannot be completed in-house – and hire an expert to do it. Taxes are one example, but in some cases SMBs should also hire ad firms to create campaigns or a web designer to complete an update to their existing website. Second, focus on your personal health as well as the business’s health. According to a recent Gallup Daily survey business owners are the most productive when they are happy. When they are happy they are eating right and exercising. So don’t skip the gym and don’t hit too many drive thrus. Finally, learn the technology of today. Not just the online sector but mobile and also the cloud can be of huge importance to small businesses. “Cloud services can be big time savers for small businesses owners. Taking the time to navigate through cloud solutions that help organize your business communications and documents will be a big time saver down the ride,” said Pugh. “Applications like Google Docs allow business owners to collaborate in real time with employees, Evernote allows business owners to take notes on the go and are always accessible and EZ Balances is a simple app for business owners to use when tracking their spending. There are thousands of simple, effective solutions out there so it’s best to start taking advantage of the cloud to save time.” Original Source by Kristina Knight http://www.bizreport.com/2013/02/top-3-tips-for-better-time-management.html
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Businessuite Magazine
HR + employment issues
HR +
employment
Are you an Extravert or an Introvert And Is your work in synchrony with your personality?
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he Psychological Type Model is based on the understanding that we have 16 distinctively different personality types. However, within these types we can find a broad range of variations across the continuum. The evidence indicates that we are born with a given Personality Type that generally does not change, but our behaviours do. As we grow and develop through the variety of life experiences, we learn what behaviours are more appropriate to a given situation and most often, we try to be in harmony with our environment. All of us have all the same components; but each has an inborn preference that is similar to your dominant hand preference. The fact that you are right handed does not mean that you cannot write with the left. It merely means that you feel more competent and comfortable using the dominant hand. This is the same for your personality.
The foundations of many of the problems that will befall a couple are to be found in intrinsic differences in the core of their personalities. Psychologist Carl Jung used the term “Attitude” more than 80 years ago to refer to the ways in which individuals direct their psychic energy. Research has continued to support this construct. The two attitudes are Extraversion and Introversion. Extraverts’ energy is directed primarily outward, towards people and things outside of themselves. Extraverts tend to be more naturally active, expressive, social, and interested in many things TO THE EXTRAVERT • The real world is around you • Energy comes from outside The Extravert: • Is Sociable, comfortable and confident in unfamiliar sur-
roundings • Likes organizations, groups, community gatherings, parties • Dislikes being alone EXTRAVERTS OFTEN: • Have high energy • Talk a lot • Think out loud • Like to be around people a lot • Are easily distracted Introverts’ energy is primarily directed inward, towards their own thoughts, perceptions, and reactions. Introverts tend to be more reserved, private, cautious, and interested in fewer interactions, but with greater depth and focus. TO THE INTROVERT • The real world is within you • Energy comes from within The Introvert: • Tends to be unsociable, prefers reflection to activity • Feels lost in large gatherings, continued on page 22
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HR + employment issues prefers own thoughts to conversation • Is at his/her best when alone or in small familiar groups INTROVERTS OFTEN: • Have quiet energy • Talk less • Think before they act • Are comfortable spending time alone • Have good concentration EXTRAVERSION COMMUNICATING • Communicate energy and enthusiasm • Respond quickly without long pauses to think • Focus to talk is on people and things in the external environment • Need to moderate expression • Seek opportunities to communicate in groups • Prefer face-to-face over written communication • In meetings, like talking out aloud before coming to conclusions INTROVERSION COMMUNICATING • Keep energy and enthusiasm inside • Like to think before responding • Focus is on internal ideas and thoughts need to be drawn out • Seek opportunities to communicate one-on-one • Prefer written over face-to-face communication • In meetings, verbalize already well thought out conclusions Your optimal work environment is also influenced by where you fall on these two dimensions.
• Often act quickly, sometimes without thinking • When working on a task, find phone calls a welcome diversion • Develop ideas by discussion • Like having people around INTROVERTS AT WORK • Like quiet for concentration • Tend not to mind working on one project for a long time uninterrupted • Are interested in the facts/ideas behind their work • Like to think a lot before they act, sometimes without acting • When concentrating on a task, find phone calls intrusive • Develop ideas by reflection • Like working alone To Identify the Best Careers For Introverts And Extroverts contact the author of this article Leahcim Semaj, PhD Leahcim T. Semaj & Company Limited The JobBank Tel: (876) 948-5627 Fax: (876) 756-2337 Web: www.ltsemaj.com Email: info@ltsemaj.com Skype: TheJobBank Facebook: Leahcim T. Semaj & Company, The JobBank
EXTRAVERTS AT WORK • Like variety and action • Often impatient with long slow jobs • Interested in the activities of their work and in how other people do it
360 Signature Events is a Caribbean company specialising in the planning and execution of Corporate and Marketing Events including, Exhibitions, Conventions, Conferences, seminars, Sporting and Hospitality Events, Road Shows, Brand Promotion, Product launches, Incentives and Special Event.
www.360signaturevents.com 22
Businessuite Magazine
Customer service
Customer + Service
“Employee Engagement” a vital component of any human resource strategy.
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re your employees engaged, committed, and highly motivated to your company and your brand?
Employee engagement is a vital component of any human resource strategy. Many organizations have narrowed the focus on employee engagement amid the struggle for economic survival.
Why is Engagement Important? People who are engaged by their work have a sense of urgency, focus, enthusiasm, and intensity. The Society for Human Resource Management (SHRM) 2011 Employee Job Satisfaction and Engagement Study reports that: “People who are engaged are determined to accomplish their work goals and are confident they can meet their goals.” A highly engaged workforce is critical to the survival of any company. A disengaged workforce can be a major cause of a spiral into insolvency.
sults in support, commitment, and performance, especially when the going gets tough. Culture cannot be achieved overnight and requires a dedication by leadership to be committed to service excellence. Team members need to know that leaders are fair, supportive and committed to their success and growth.
Strategy #2 – Quality of interaction with Leader/Manager Remember the old adage: “People don’t leave companies, they leave managers.” How you treat your team will determine how they treat you and the quality of the output that they deliver. It is through the ongoing manager/team member dialogue that almost all the key engagement leverage points begin to take shape. Without this sometimes challenging, always candid and respectful dialogue, none of the other drivers of engagement have a chance to make a difference.
How can you improve Engagement Levels? Low levels of engagement are a significant competitive disadvantage. But while the problem is important, most companies do not realize the significant improvement in engagement levels can be accomplished through a set of human interactions focused on a few vital areas.
Strategy #1 – A culture of support, ethics, and performance Your company culture needs to enable an environment that fosters the creation of cooperative bonds among people, so each person can feel a commitment to co-workers and the team. That establishment of a personal connection with at least a vital few co-workers will reinforce engagement and build a shared sense of responsibility that re-
Strategy #3 – Strategy and Objectives Two factors are critical if strategy and objectives are to be a positive force for engagement. The first is that they are defined and communicated. Without clear understanding of the objectives, there can be no focus. Second, there must be a certain level of confidence that the strategy will work. After all, who wants to work on something that likely will fail, even if the cause is noble?
Strategy #4 – Work of Value People who work on activities that have meaningful impact and contribution tend to be highly motivated. The work given to team members must be work that is adding value and that is meaningful to their development and growth. When someone does something that means something they will continued on page 24
Businessuite Magazine
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Customer service value the actions taken to achieve the desired results.
Employee Engagement Tips
Strategy #5 – Opportunities for Growth
Tip #1 – Build Trust - Employees need to be able
Personal development is critical for the growth and success of a company. Most people value the opportunity for personal development and deeply appreciate someone’s interest in their welfare and future. Jack Welch, former CEO of General electric said as leaders we should -“Think of yourself as a gardener, with a watering can in one hand and a can of fertilizer in the other. Occasionally, you have to pull some weeds but most of the time you just nurture and tend.” Candid developmental discussions and practical developmental activities can be a strong indicator of an organization’s commitment to the individual.
to trust their managers and company leadership. Clear communication is a key element of trust. To build trust, monitor how and what you communicate to people around you. Be clear and direct. Manage expectations. Be truthful and as transparent as possible to avoid guesses and assumptions and to prevent rumors and unfounded fears from spreading. In organizations under stress, sometimes it is difficult for leadership to be completely forthcoming. Few people expect everything to be perfect all the time, but uncertainty breeds discontent. Tell employees as much as possible as early as possible, even if it is bad news.
Strategy #6 – Adequate Resources to Get the Work Done Tip #2 – Appreciate People – Recognition is an Everyone wants to succeed, and success requires the capacity to get things done. Motivation and engagement suffer when employees struggle to get the minimum resources needed to do the job. As leaders we must ensure that team members have requisite tools to complete the job such as competent computers with systems that are efficient. As leaders we should also ask our team members what they will need to get the job done. When our teams succeed, we succeed as a whole! Managers can significantly influence engagement levels through their communication and their perspective. How they interact, the expectations they set, and how they support their team members’ work and development can change a bystander into a highly engaged employee. What have you done to drive engagement this month?
There is nothing more demotivating than feeling you’re in a dead-end job. Talk to employees about what direction they’d like to see their career path take,.” 24
important part of motivation and engagement, and it can be as simple as genuine appreciation. Praise where warranted and give credit where credit is due. The best recognition is immediate, specific, and personal. Let the person know specifically what you appreciate about her or what she did, and do so in a way that the individual will appreciate – Public Praise.
Tip #3 – Support Growth - There is nothing more demotivating than feeling you’re in a dead-end job. Talk to employees about what direction they’d like to see their career path take, and help them identify opportunities for personal and professional development that will help them achieve those goals. Share with them ideas they can use for their own career management within the organization. Move past any fear you may have of your employees leaving – by caring about their growth and aspirations, you will probably get a more productive, loyal, and longerterm team member than if you don’t have these conversations. Yanique W. A. Grant Certified Customer Service Consultant Professional Training and Occupational Services, Inc International Channel Partner for Service Quality Institute (SQI) Contact us: http//www.customer-servicejamaica.com Professional Training & Occupational Services Limited
Businessuite Magazine
cover Story
Real Estate
Is Jamaica’s Housing Sector in Trouble? Collusion to restrict the supply of houses to inflate prices?
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ll is not well within the Jamaican real estate sector and the major players are not happy that their businesses are facing imminent closure and prolonged periods of losses. Three distinct factors are now being looked at in great detail to fully assess the possible impact and fall out.
Chairman of DC Tavares & Finson, William Tavares-Finson, was quoted recently saying that the “number one concern” is the psychological effect of what is happening on the market. All indicators point towards a contraction in investment in a sector that was already flat before the latest wave of measures.
Firstly, according to recently published sources, industry experts are worried that the latest tax measures imposed by the PNP Government will help to further slow down activity in the real estate sector, maybe even bring it to a virtual standstill.
“What you are going to find is that developments will start to slow, people will start to second guess everything, and the expected revenues that they are hoping to get from transfers may not even arrive, because people are not selling or buying,” he said.
Government’s increased transfer tax from four to five per cent and stamp duty from three per cent to four per cent on properties as part of its recently announced $16.4-billion tax package has the industry experts worried.
Secondly, the Governments plan to draw down close to $45 billion from the coffers of the National Housing Trust(NHT) has further created uncertainty as to whether it will have the capacity to continue building low cost housing.
This has realtors really jittery with Anya Levy, an associate with Re/ Max suggesting that, “A big part of our industry is the Housing Trust. It is there to supply affordable housing, and if the coffers are raped, and there is no money there, then it can’t fulfill its mandate.” And there are others outside the sector predicting and pointing to a virtual melt down and bursting of the proverbial real estate bubble, this time for other reasons principal of which is unsustainable and inflated prices, marking the third factor. Speculation has been swirling for many years now as to whether collusion exists between industry players, to restrict the supply of houses thereby inflating prices. Dr André Haughton, a lecturer in the Department of Economics continued on page 26
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Cover Story
Real Estate on the Mona campus of the University of the West Indies in a recent article posed the question, “What causes the housing bubble?” He alluded to possible collusion between developers, brokers, bankers and lending institutions, to restrict the supply of houses, to inflate the prices. “Under normal circumstances, low interest rates in an economy would encourage excessive borrowing as individuals acquire additional assets, including housing, since the cost of borrowing is low. This increase in the demand for homes would inflate the price of housing, causing the bubble to develop. This is similar to what happened in the US, which contributed to the recent financial crisis.” In Jamaica, however, the situation is different because interest rates are high. The main problem, therefore, is possible collusion between developers, brokers, bankers and lending institutions, who restrict the supply of houses, hence inflate the prices. This collusive behaviour prevents the market from operating efficiently to determine a fair price.” Carlton Cunningham, a developer of Affordable Housing, has said from as far back as 2009, like many other persons inside and outside the sector that this is a crisis indeed, particularly when the vast majority of the working population cannot afford and statistically have no hope of selection for available housing solutions. Cunningham suggested that what we still do not appreciate is the catastrophic progressive decline in workers real incomes, effective housing demand and the ultimate folly of relying on a single source of funds, NHT contributions, which were applied, unleveraged, to a fixed range of housing solutions which would give rise to the huge gap between expectations and delivery from which we are now reeling. Jamaica’s workers lost both affordability and quantity. In making his point Carlton Cunningham offered the 26
following back in 2009. “Let’s look at affordability. The lowest paid worker, the sugar worker, could in 1977 (Sugar Industry Housing Limited Archives) afford a completely built two-bedroom unit costing $12,500 on a single wage of $2,500 per annum, utilizing a graduated payment mortgage (GPM), which established a wage/mortgage ratio of 1:5. This was achieved with annual interest charges of eight per cent to 10 per cent. The graduation meant that workers paid a constant percentage of income, 25 per cent to 30 per cent, for the life of the mortgage, which was fair to those who received benefits, and fair to those in the queue, as the real value of the fund was maintained despite inflation.” We failed to notice and so failed to change policy over time as the construction cost index, maintained by Brian Goldson, quantity surveyor, statistician for the construction industry, crept from a base of 200 in 1979, walked and then ‘Bolted’.
The question of adequate low cost resources to fund development and the ability of the population to earn the required income to afford the developed houses is a balance that for many years has eluded the industry and seems to be one that will not be resolved for some time to come” Businessuite Magazine
cover Story The 2009 index is a multiple of 590 of the 1979 base, while the comparable wage index, the minimum wage, has risen to approxiReal Estate mately $200,000, a multiple of 80 over the base of $2,500 meaning that the worker can afford 80/590 = 13.5 per cent of the housing value he could afford in 1977. The GOLDSON INDEX 1993 1998 1,320 3,656
2003 5,049
2008 10,287
2009 11,869
It now requires eight minimum wages to afford a twobedroom 700 sq ft house. The only significant change in housing policy in all this time has been the abandonment of GPMs and the substitution of low-interest fixed rate mortgages, using a sliding scale of interest dependent upon beneficiaries’ incomes. Further, access to solutions has become regressive, meaning better off contributors monopolise the benefits (NHT research). Concurrently, and even more significantly, has been the diminution in the number of solutions annually produced, which was always less than the need, ever so long ago estimated at 20,000 pa (1976, Derek Gordon and others), and production has now been reduced consistently into the region below 5,000 pa (inclusive of the private sector) because the real value of the NHT fund has diminished due to inflation.” In this environment it would seem that the alluded housing bubble in Jamaica is associated with the rapid increase in housing prices relative to average income and average price of goods and services in the country. Dr André Haughton is his article has left a number of questions that need to be answered by those inside and outside the industry in order for a much clearer picture to seen. Businessuite Magazine now poses these questions and invites your response. 1. Do you agree or disagree that a housing bubble arises from the artificial increase in prices beyond their true value? Businessuite Magazine
2. Do you agree or disagree that we presently have a housing bubble? 3. Do you agree or disagree that there is possible collusion between developers, brokers, bankers and lending institutions, to restrict the supply of houses, hence inflate the prices? 4. Do you agree or disagree that the general rule of thumb is that the average household expenditure on housing should be approximately 25 per cent to 32 per cent of total income; this includes principal, interest payments, property taxes and insurance? 5. Do you agree or disagree that in Jamaica, average mortgages in some instances is more than 70 per cent of middle-income earners’ income and more are more than 100 per cent of low-income earners? 6. Do you agree or disagree that there is a housing problem that is fostering generational poverty and a diminished quality of life for countless Jamaicans? 7. Do you agree or disagree that the NHT, by not building houses or facilitating such, is helping to keep the supply low? 8. Do you agree or disagree that not enough houses means the demand is high, so the price of houses will increase. This biases the market, which can only be corrected if the supply of housing increases? The question of adequate low cost resources to fund development and the ability of the population to earn the required income to afford the developed houses is a balance that for many years has eluded the industry and seems to be one that will not be resolved for some time to come. As Maslow’s Hierarchy of Needs teaches us, that until an individual’s basic needs are met, in this case housing, he or she is unable to recognize or maximize their potential. This becomes a loss not only for the individual but contributed to diminished economic vibrancy for an organization or a nation. Sad to say, the housing issue, whatever the catalyst, is contributing to the underachievement of Jamaica’s people and the nation’s performance in the global marketplace. Who will answer the housing question? 27
Technology
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Inside the Google-Samsung Tussle for Future of Mobile.
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amsung is, by far, the biggest provider of Android smartphone technology in the U.S. In December 2010, 19.1% of U.S. Android users were on Samsung phones, according to ComScore. By December 2012, Samsung had become the leading Android provider, at 37.8%. HTC was second, with 17.5% of all U.S. Android users. Research firm IDC said that 40.3% of all Android phones shipped worldwide in third quarter of 2012 were Samsung phones. Using Android software has allowed Samsung to integrate all of Google’s popular mobile services into its devices, and in turn, make them more alluring to customers. Likewise, Samsung’s success and ability to eat into Apple’s market share has helped Google become the dominant leader in mobile advertising. Google accounted more than half of all mobile-advertising revenue in the U.S. and worldwide in 2011 and 2012, according to eMarketer. Underlying this prosperous, mutually beneficial relationship, however, the two companies have slowly started to infringe on the other’s core competency. Google bought mobile-phone maker Motorola Mobility in summer 2011 and recently hired one of Samsung’s top marketers to grow it into a profitable business. Samsung, meanwhile, has started working with Intel to develop Tizen, an open-source alternative to
Android. Some suggest each move is a hedge. Samsung wants to be prepared should Google decide to restrict certain Android features to Motorola smartphones, and Google wants to own hardware in case Samsung decides to move all of its phones to Tizen (or a different platform it owns exclusively). With both moves, the companies are becoming closer to what Apple is: a vertically integrated tech company that owns and controls the software and hardware behind an array of consumer-electronic goods, enjoying the correspondingly high profit margins. But neither company can afford to compromise the relationship in the short term. Google’s mobile-advertising business depends on the scale Samsung helps provide, and Samsung has yet to develop an OS on par with Android. Rather, what’s occurred between Samsung and Google in the past year and a half is just the beginning of a competition that will play out over the next several years and eventually include smart TVs, internet-enabled home appliances and wearable computers. For more go to http://adage.com/article/digital/inside-google-samsungtussle-future-mobile/239936/?utm_source=daily_email&utm_ medium=newsletter&utm_campaign=adage
“We have moved away from traditional advertising to compelling conversations and experiences between Brands and consumers.
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The McLaren P1 hybrid supercar’s gasoline engine and electric motor together produce more than 900 horsepower. (Credit: McLaren)
2014 Alfa Romeo 4C (Credit: Alfa Romeo)
Magnificent Machines: 8 Fast And Sexy Cars To Debut At The 2013 Geneva Motor Show
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ports cars and luxury cars are undergoing a metamorphosis, a dynamic that is evident in the debuts at the Geneva Motor Show.
Five years ago, if you asked executives at high-end automakers like Bentley and Ferrari what they were doing to improve the fuel economy of their vehicles, you would get blank stares. Now Ferrari is putting a hybrid system in its fastest, most exclusive sports car. The yet unnamed car, to be unveiled in Geneva, is heralded as the successor to the Ferrari Enzo. McLaren Automotive is doing the same with its new P1 supercar, which also debuts in Geneva. Its hybrid powertrain will produce more than 900 horsepower.
It’s a unique time of unprecedented choice, where the best of traditional technology coexists, and in some cases commingles with, the innovations of the future. But what is most encouraging—to us gearheads, anyway—is that automakers are still concocting captivating cars that are beautiful to behold, like the eight sexy Geneva debuts featured here.
2014 Alfa Romeo 4C
Clearly, a striking shift is getting underway. But much is also staying the same.
Alfa Romeo, part of the Fiat Group, left the United States in 1995 after demand for its vehicles waned. At long last, the Italian automaker is returning to the U.S. market late this year or early next with a fantastic looking little two-seat sports car called the 4C. If it proves to be as good as it appears from preliminary photos and specs, it will be highly coveted, all the more so because production will be limited.
Even as Ferrari and McLaren forge new territory with high-performance hybrids, plenty of examples of old-school power also will be on display at the Geneva Motor Show. Aston Martin is showing a new version of its four-door Rapide, which uses a gaschugging V12 engine. Meanwhile, Mercedes-Benz is bringing yet another mind-bending AMG model with an amazingly potent 6.3-liter V8 engine that is neither downsized nor turbocharged, as seems to be the norm lately, even for AMG.
The 4C is diminutive and light, with a body made of carbon fiber and an underlying structure that makes extensive use of aluminum. Alfa Romeo says it will weigh less than 1,900 pounds and will have a turbocharged four-cylinder engine, positioned just ahead of the rear wheels, that produces more than 200 horsepower. What this means in practical terms is that the 4C will be one fast automobile. It will likely be priced similarly to the Porsche Cayman, which starts at $52,600.
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2014 Chevrolet Corvette Stingray (Credit: www.motorauthority.com)
2014 Aston Martin Rapide S (Credit: Aston Martin)
2014 Bentley Continental Flying Spur (Credit: Bentley)
2014 Aston Martin Rapide S
Rapide S will begin in May.
British automaker Aston Martin is coming to Geneva with a new version of its four-door Rapide, called the Rapide S. It features new architecture, an improved engine and a bold new front grille that is handmade from aluminum. It also had an adaptive suspension from the latest Vanquish and DB9.
2014 Bentley Continental Flying Spur
The Rapide S sits lower than the model it replaces and has nearly perfect weight distribution, which makes this sexy four-seater extremely agile. Power from its V12 engine is up from 470 horsepower in the previous Rapide to 500 horsepower. Aston Martin says it should be just under half a second quicker from 0 to 62 mph, making the sprint in 4.9 seconds. Deliveries of the 2014 Aston Martin 30
The smaller and less expensive of Bentley’s two very large and pricey sedans is getting fully revamped for the 2014 model year. The new Continental Flying Spur has a more youthful design that looks lower, wider and more athletic than the car it replaces. It is 110 pounds lighter than its predecessor, with the weight savings coming from such choices as using aluminum instead of steel for the hood and front fenders. But it’s still a portly sedan at 5,451 pounds. The 2014 Bentley Continental Flying Spur uses the latest version of Bentley’s twin-turbocharged 12-cylinder engine. It produces 616
horsepower, making this the most powerful four-door Bentley ever. An all-wheel drive system sends 40 percent of the power to the front wheels and 60 percent to the rear. An eight-speed automatic transmission reduces fuel consumption and emissions by 13 percent. Overall fuel economy is an estimated 15 miles per gallon. U.S. deliveries begin in June.
2014 Chevrolet Corvette Convertible Chevrolet is following its unveiling of the all-new C7 Corvette Stingray at the Detroit auto show in January with a convertible version in Geneva. Little is known about the droptop at the moment, but it’s a safe bet that it will have the same specs as the coupe: a 450-horsepower, 6.2-liter V8 paired with a sevenBusinessuite Magazine
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Ferrari Enzo Successor
speed manual or six-speed automatic transmission. Like the 2013 Corvette Convertible, the all-new 2014 model will likely incorporate a power-operated fabric top rather than a heavier and bulkier folding hard top. As with most convertibles, the new C7 Corvette Convertible will probably be heavier than its fixed-roof counterpart, due not only to the folding top mechanism, but also to additional structural reinforcements required to stiffen the chassis. Word is that the 2014 Chevrolet C7 Corvette Convertible will roll into dealerships several months after the C7 Corvette coupe, which goes on sale in the third quarter.
2014 McLaren P1
Ferrari Enzo Successor Speculation has been rampant regarding the longawaited successor to the Ferrari Enzo. Here is what we know for sure: The new limited-edition supercar to be unveiled in Geneva will have a V12 hybrid engine that uses technology Ferrari has developed through Formula One racing. It is expected to reduce emissions and fuel consumption by around 40 percent versus a conventional Ferrari V12 powertrain. The car will have a mid-engine layout that places the engine between the passenger compartment and the rear wheels. Its backbone is a new carbon-fiber structure also developed with the help of Ferrari Formula One race teams. Ferrari isn’t revealing any specs, but rumor has it that the hybrid powertrain will put out 900 horsepower or more. Businessuite Magazine
McLaren P1 (Credit: McLaren)
McLaren has a hybrid supercar of its own to show off in Geneva. The McLaren P1 is, essentially, a road car with the performance of a race car that can also drive like a zero-emissions electric vehicle for short distances. It is powered by an enhanced version of the twin-turbo V8 in the McLaren MP4-12C. It cranks out 727 horsepower. A lightweight electric motor bolted directly to the engine adds another 176 horsepower for a combined output of 903 horsepower. A sevenspeed dual clutch transmission sends power to the rear wheels. 31
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2014 Mercedes-Benz C63 AMG Edition 507 (Credit: Mercedes)
McLaren says the P1 will accelerate from 0 to 62 miles per hour in less than 3 seconds and will achieve a top speed of more than 217 miles per hour. It will also have an electric mode that allows the car to drive 12 miles or less at speeds up to 30 miles per hour without using the gas engine. Like regular hybrids, the engine recharges the battery pack, which is located behind the passenger compartment. But the McLaren P1 can also be plugged in to recharge its batteries. It will go from empty to full in two hours. McLaren says it will build 375 of these hybrid supercars and sell them for around $1.3 million.
2014 Mercedes-Benz C63 AMG Edition 507 AMG has done it again. Mercedes’ performance division has created yet another insanely powerful permutation of an already powerful vehicle. In this case it’s a new version of the Mercedes-Benz C63 AMG, called the C63 AMG Edition 507. The 507 stands for the power output of its 6.3-liter V8 engine. With 507 horsepower on tap, the C63 AMG Edition 507 has 56 horsepower more than the base C63 AMG, and is only 3 horsepower shy of the superexclusive C63 AMG Coupe Black Series. The Edition 507 replaces the AMG Development Package that was available on the C63 AMG for the 2013 model year, which increased output to 481 horsepower. It will be available on coupe and sedan versions of the 2014 C63 AMG starting this summer with pricing to be announced.
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Rolls-Royce Wraith (Credit: Rolls-Royce)
Rolls-Royce Wraith Rolls-Royce is using a lot of superlatives to describe its all-new vehicle. But this should suffice: the Wraith is “the most dynamic and powerful Rolls-Royce” in history. Based on teaser photos, it’s clear the Rolls-Royce Wraith will be a two-door fastback, a term that refers to the rakish slope of the rear window and trunk lid. It also appears to have the brand’s signature rear-hinged doors, which open in the opposite direction of conventional car doors. This is suggested by the position of the door handles, which are set close to the front fender, as on the Phantom Drophead Coupe. Though Rolls-Royce is being deliberately vague in what it says about the car prior to the unveiling in Geneva, the company strongly implies that the Wraith will be its sportiest model to date, which could be taken as an indication that it won’t be based on the gargantuan Phantom, but on the smaller—yet still imposing—Ghost. The Wraith’s highly anticipated debut coincides with the 10-year anniversary of Rolls-Royce’s relaunch following its acquisition by BMW. The Geneva Motor Show gets underway next week. It is open to the public March 7 through 17, following two press days. Source: Forbes Magazine
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