Kim Management magazine by MFBPUB

CONTENTS

COVER STORY

CUSTOMER SERVICE

The power of digital platforms in brand equity

Are you guilty of stereotyping your customers?

FEATURES

42 44

48 52

CORPORATE CASE STUDY Making medical Insurance accessible

TACTICS The gender agenda-What counts for employers?

56 64

HANDS-ON MANAGEMENT Why embedding coaching in your organisation works for you

ENTREPRENEUR A jewellery shop on wheels

SMART LEADERSHIP Soaring through the leadership storms

NEW KNOWLEDGE Charting your childâ&#x20AC;&#x2122;s education: why it matters

The enchanting Islands of zanzibar

July 2015 Management Magazine

CONTRIBUTING WRITERS Kris Senanu Kris is a Chartered Marketer, Entrepreneur and currently the Deputy CEO of Accesskenya Group Limited. He has extensive knowledge and strategic foresight into the Telecommunication and ICT sectors in Kenya and Africa. His specialty is in revenue optimization, change management and brand development. Having been part of the team that took AccessKenya to the Nairobi Stock Exchange as the first publicly listed ICT Company in the region, he is now focusing his energies on post-acquisition integration having been recently fully acquired by the Dimension Data Group. Email: kris.senanu@accesskenya.com

Tom Sitati Tom is the Managing Partner of Brand Integrated Consulting, a brand and business advisory firm with a footprint across Africa, and recipient of The Brand Leadership Award 2013 - Africa Leadership Awards. He is one of the pioneer practitioners and commentators on strategic branding issues in the region and beyond, where he has facilitated several workshops and spoken at various forums including the inaugural World Marketing Forum (WMF) in Accra, Ghana and Common Market for East and Southern Africa Business Summit in Nairobi, Kenya. Email: tom.sitati@brandintegrated.com

Carolyne Gathuru Carolyne is the Founder and Director, Strategy and Business Development, LifeSkills Consulting. She is an accomplished brand and marketing strategist and also a successful marketing and customer service professional with over 15 years experience in industry. She is an ardent customer service practitioner with experience in the areas of business development, marketing, branding, public relations, customer service and corporate communications. She sits on the board of The Institute of Customer Service in Kenya that sets customer service standards nationally. Email: cgathuru@life-skills.co.ke

Elizabeth Muguchu Elizabeth has been a HR Practitioner for the last 9 years. She currently works in a global company as the Head of Human Resources, and runs a HR Consultancy practice. (RSD Consultants). She has a Bachelor of Education (Arts) -KU, a Higher Diploma in HR (KNEC) and an MBA (HR option) – KU. Elizabeth also has a Diploma in Monitoring and Evaluation from KIM, A Diploma in International HR - Stonebridge Associated Colleges, and a Certificate in Labour Laws from IHRM. Email: elizabethmuguchu@gmail.com

Mutunga Katia Mutunga wrote his first novella at age fifteen. Since then, his oral story telling skills haven’t considerably improved, but he likes to think his penmanship has. The adventure of life has led him through an amazing journey in different sectors including ICT, Marketing and Tourism following studies in Strathmore University and Utalii College. He currently serves as a tour consultant/ leader with a leading tour firm. Previously writing on varied topics such as sports, entertainment and lifestyle features he discovered his life’s calling once he started writing on his travels. He found meaning in the exciting but fleeting encounters with new environments and people by documenting these experiences. He promises that these shall be available on his upcoming blog (Travelog). Email: mutunga.katia@gmail.com

July 2015 Management Magazine

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FIRST THOUGHTS

A P U B L I C AT I O N O F T H E K E N YA I N S T I T U T E O F M A N A G E M E N T

July 2015

KSHS TSHS 6,490 USHS 10,330 RWF US$4

TACTICS: Turning your employees into brand marketers P. 46 SMART LEADERSHIP: Soaring through the leadership storms P. 48

Marketers arise! Your country needs you! For decades, countries in Africa were economic laggards, not any more. The booming economies are a testimony of the dramatic growth.

STRATEGIC MARKETING

By WAITHERA NG’ANG’A

FOR THE DIGITAL AGE How companies can harness the incredible power of the digital revolution

HEAD OF COMMUNICATIONS AND CORPORATE AFFAIRS: Miriam M. Chege (mchege@kim.ac.ke) DEPUTY EDITOR: Tabitha Areba (tareba@kim.ac.ke) SUB EDITOR: Murugi Ndwiga (ndwigam@kim.ac.ke) REVISE EDITOR: Judy Ogutu (jogutu@kim.ac.ke) STAFF WRITER AND PHOTOGRAPHER: Sammi Nderitu (snderitu@kim.ac.ke) DESIGN & PRODUCTION: Wilbur Alusiola (wilbur@kim.ac.ke) Bonstein Sisa (bsisa@kim.ac.ke) CONTRIBUTORS: John Dembe, Waithera Ng’ang’a, Joe Otin, Mbugua Njihia, Ronald Chepkwony, Mercy Kawira, Joyce Waithira Wauthi, Caroline Gathuru, Dr. Florence Wachira, Frank Olilo, James Ratemo, Diana Kubebea, Katia Mutunga, Kris Senanu, Kioko Muasya, Winsley Masese, Marie Mulli, Jacqueline Kubania, Eileen Laskar, Mercy Andaro, Ali Mohamed, Kerushan Govender, Ken Macharia, Stella Riunga, Amani Mwavuo, Eric Kathenya.

COVER PHOTO: Sammi Nderitu PHOTOS: Sammi Nderitu, Shutterstock photos HEAD OF SALES: Anthony Githendu (agithendu@kim.ac.ke) ADVERTISING SALES (KENYA): Elizabeth Mbinya, Boaz Kisero, Rose Osok, Titus Omondi. ADVERTISING & SUBSCRIPTION (UGANDA) Boaz Amutuheire (boaz@luckyfamily.biz) ADVERTISING & SUBSCRIPTION (RWANDA) Samuel Kuria (skuria@kim.ac.ke) Patrick Ojil (ojillp@gmail.com) CIRCULATION ENQUIRIES management@kim.ac.ke PRINTED BY: Ramco Printing Works Ltd.

f ever there was a perfect time to be a marketer in Africa-specifically Kenyathat time is now! Africa is finally taking its place on the global map for all the right reasons. The continent is the next frontier in digital services, innovation and entrepreneurship. We are seeing a wave of lateral thinking coming from the continent, with African Marketers looking at growing the sustainability of their brands through impacting communities in a positive way. There has been a shift with brand owners investing in our people and our communities to ensure our nations have a future, investing in our environments to ensure that the future cost of doing business is sustainable. Here at home, great opportunities abound for the marketer who is ready to dive in and make a change either directly in county government or national government. The next decade will be crucial in deciding our economic and societal fate. Our counties are set to be economic cities, with opportunities being created for marketers in leadership, research and development of unique brand identities for the counties as county representation seek investment opportunities. County governments need to put their thinking caps on creating ownership , a sense of pride and a unique brand identity. Here, my dear marketers is where our professional services come into play. Each county community is facing compelling challenges as they are not only competing with other county governments for investment resources, but with other global markets too. The counties that come up with unique selling propositions (USP) to drive growth in their economy and uncover differentiated investment destinations in previously overlooked sectors will ultimately be the winners. It’s time for us to engage in development of our counties and re-look counties’ assets through a marketer’s eyes, see what can be re-packaged to make sense and sing to the souls of local and foreign visitors and investors. Strategic planning by county leadership is starting to take into account brand planning- how to transform county value and brand name DNA into county bank balance sheets through local and foreign investment and tourism. I foresee marketers taking an active role in driving (if not leading) the communication of key growth sectors in different counties and building on programmes that work and are solution driven. For those not directly involved in our country’s marketing you still have a great part to play. As you work on your marketing and brand strategy, it is vital that we ask ourselves one question-how can we grow our brand platform and at the same time add value to our country? We need to make sure that as we grow our bottom lines, we play a part in the growth of this country.

KIM COUNCIL MEMBERS Dr. Jonathan Ciano - Chair Rose B. Osoro - Vice Chair Stella Muendo (Company Secretary) Arc. Maxwell Suero Clement Nyandiere Kris Senanu Richard Lesiyampe PUBLISHER THE KENYA INSTITUTE OF MANAGEMENT, Luther Plaza, 2nd and 3rd Floor, Nyerere Road/University Way Roundabout P.O. Box 43706 - 00100 Nairobi, Kenya. Tel: 020 2535277

July 2015 Management Magazine

A great future awaits Kenya and it’s ours for the taking! We have great opportunities ahead, as Kenyans and marketers. Let’s wake up and reimagine a positive future for all, let’s go a step further and move from being part of the arm chair crowd that analyses Kenya and its leaders, and start impacting Kenya with positive change by being results oriented. Let us support Kenya, buy Kenya, build Kenya and above all, believe in Kenya. Time is ripe to take centre stage and use our marketing prowess to tell our continent’s and our country’s amazing story. Email: ceo@msk.co.ke

Perspective

Employees are the best marketers T

he current competitive time demands that every employee must be a committed marketer. This is all the way from the sales guy to the receptionist, support service managers and line managers. Each person must be conscious of the source of the bread in the basket.

The environment now demands passionate people who want to see the organisation excel, even as

they excel at a personal level. This is the only sure way of ensuring that the organisation will have a much easier time acquiring customers, turning them into repeat buyers and getting them to be your top ambassadors.

The personal brand and the corporate brand should not compete, they should cooperate. The most successful organisations help employees understand their personal brands, capitalising on the integration of these individual traits with the broader corporate objectives.”

This reality requires that all employees must understand the marketing message. Each employee must know what makes their firm different from all the others. Everyone must be a good spokesperson of the establishment, capable of pointing out with ease the company’s differentiators. You are a square peg if you cannot point out these differentiators. For its part, the organisation must motivate everyone to be a marketer. Bonuses and other perks for referral business have usually worked well. There is possibly no better way to turn employees into good marketers than to actually pay them for bringing in business. It helps to listen to your employees on how to expand your market. It is during such discussions that new ideas will come up even from outside the organisation. A talking organisation easily generates new ideas and approaches to doing things. It goes a long way to provide ongoing training for improved job performance. Every single person must be able to see how their individual roles impacts on the customer. There shouldn’t be the impression that only certain people are concerned with customer care. Indeed, it might be time to reexamine that title and role in organisations. Everyone should be the customer’s keeper. Everyone in the organisation is there for the customer and never the other way. Amidst all this, it will be important to weed out unsuitable people. These will be people who will not meet the mark, regardless of the investment in them. They just will not fit. It helps to let them go. This is not to mean they are bad people; they may exhibit other good characteristics but they are not suitable for the purpose intended in the set up. I found the following three facts from an article by William Arruda interesting to share. One is that organisations should promote self-discovery and personal branding. A report by Daniel Cable, Francesca Gino and Bradley Staats published in Administrative Science Quarterly, Cornell University shows that to maximise employee satisfaction, new employee socialisation should focus on personal, not corporate, identity. When your employees can be their ‘authentic best selves’ in the workplace, productivity and retention increase. Your goal is to attract so that your new brand ambassadors will feel authentically drawn to your brand. Helping your employees unearth their greatest strengths and integrate them into everything they do is essential to your success and the success of your team. Number two is to make brand awareness a priority. Gallup asked more than 3,000 randomly selected workers to assess their agreement with the statement, “I know what my company stands for and what makes our brand different from our competitors.” Shockingly, only 41per cent of employees strongly agreed with this statement. This statistic indicates that more than half of those surveyed were not fully aware of their company’s brand positioning and differentiation. How can your team deliver on the corporate brand promise if they aren’t clear about what it is? As a leader, you must educate your team on the brand and live the brand so they can learn from your example. Finally, connect the personal and the corporate. The personal brand and the corporate brand should not compete, they should cooperate. The most successful organisations help employees understand their personal brands, capitalising on the integration of these individual traits with the broader corporate objectives. It is called applied personal branding, and it is a powerfully simple strategy. It is based on the principle of personal plus corporate, not personal vs. corporate. When employees are clear about who they are and what makes them exceptional, they become better brand ambassadors. Email: dmuturi@kim.ac.ke

July 2015 Management Magazine

Feedback

Great Quotes Transforming a brand into a socially responsible leader doesnâ&#x20AC;&#x2122;t happen overnight by simply writing new marketing and advertising strategies. It takes effort to identify a vision that your customers will find credible and aligned with their values â&#x20AC;&#x201D; Simon Mainwaring, an award-winning branding consultant, advertising creative director, and social media specialist and blogger. A lot of companies have chosen to downsize, and maybe that was the right thing for them. We chose a different path. Our belief was that if we kept putting great products in front of customers, they would continue to open their wallets â&#x20AC;&#x201D; Steve Jobs, CEO, Apple

@ Management_KIM Like our page on Facebook Management Magazine

Kudos for an incisive article

he article about Mike Macharia, the CEO and founder of Seven Seas Technologies was inspiring. I especially enjoyed reading about his philosophy. Look around Kenya for individuals who want to grow with others, they are few and far between. The article opened up my eyes to a new form of prosperity-collective prosperity. We need such CEOs who will be keen on opening out their hands for others to join them on the â&#x20AC;&#x2DC;dance floorâ&#x20AC;&#x2122;. I also agree that Kenya is on a great growth trajectory, with the sky being the limit. I am looking forward BRIDGING to the day when Kenyaâ&#x20AC;&#x2122;s innovations will spread out THE ICT DIVIDE in every corner of the world, the day when our techchampions will be cheered and celebrated the world over. Already, M-Pesa is a well-known product that has put Kenya on the worldâ&#x20AC;&#x2122;s global technology map. Bravo MANAGEMENT Magazine for highlighting suggestions by Mike Macharia on this new way of doing business. The world is coalescing around Kenya. If Kenyans have not noticed great things that are happening as far as technology and other innovations are concerned, other people have noticed. Kenyans need to make the best out of the available opportunities. I hope that many CEOs and owners of start-up organisations can tap into these opportunities and make Kenya a prosperous country. ( 7 < ) 3 0 * (; 0 6 5 6 - ; / , 2 , 5 @( 0 5 : ; 0 ; < ; , 6 - 4 ( 5 ( . , 4 , 5 ;

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THE ENTREPRENEUR: Effective hiring begins with the hirer P. 42

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HEALTH: Silent killer gets more deadly P. 70

Mike Macharia, CEO Seven Seas Technologies outlines Kenyaâ&#x20AC;&#x2122;s roadmap to stragegic ICT innovation

Marilyn Ochieng- Via email

News WHAT’S NEW? SUZUKI MOTORS LAUNCH CMC Motors Group, a subsidiary of the Al Futtaim Automotive Group, has launched a range of new generation Suzuki vehicle models. The event officially marked the launch of the seventh generation Suzuki Ciaz, Suzuki SX4 S-Cross, Suzuki APV Panel Van and Suzuki APV Pick up vehicle models in East Africa. ASSET FINANCING PARTNERSHIP Simba Corp and Equity Bank have entered a business partnership deal. The partnership requires Equity Bank to offer up to 95 per cent financing on the FUSO Trucks and Buses. With minimum capital outlay, Equity account and non-account holders will be able to acquire the vehicle from Simba Corp through loan facilities from Equity Bank. In addition to the asset financing facility, clients will receive Insurance Premium Financing (IPF). BRITAM’S BOARD CHANGES Dr. James Mwangi, Chief Executive officer and Managing Director at Equity Group Holdings voluntarily resigned from Britam’s Board of Directors. He was replaced by Mr. Walter Andrew Hollas, a former Senior Partner and Chief Executive Officer at PriceWaterhouseCoopers. However, Dr. Mwangi still retains his shareholding stake in the company. SEACOM PARTNERS WITH GERMANY’S INTERNET EXCHANGE Pan-African telecom enabler and network provider SEACOM has added the Deutscher Commercial Internet Exchange (DE-CIX) in Frankfurt, Germany to the growing list of European Internet exchange points. This new peering agreement will mean that SEACOM clients will enjoy better performance and less latency when they connect to Web services in central Europe.

A quest for quality management

Prof. Sam Ho, Founder & Chair, APBEST Academy, (left) with Dr. David Muturi, Executive Director, KIM during the 19th conference on ISO and TQM. By JACQUELINE OCHIENG

esearchers, scholars and experts drawn from 14 countries gathered in Nairobi for the 19th conference on International Organisation for Standardisation (ISO) and Total Quality Management (TQM). For the first time, the conference was held in Africa. The inaugural conference was first held in 1996 in England, United Kingdom (UK). The conferences were conceived to showcase organisation’s achievements in the quality management and also contribute to corporate governance thus achieving business excellence through defined standards. They were inaugurated by the Hong Kong-based Asia Pacific Business Excellence Academy (APBEST) supported by countries in Australia, UK and Asia which set the pace for quality management practices showcasing on a year to year basis. Kenya Institute of Management (KIM) co-hosted the conference with APBEST between April 7th and 9th 2015 at the Safari Park Hotel. The event brought together leading organisations to reflect on business standards and management quality through discussions based on research and experiences. KIM partnered with Kenya Bureau of Standards (KEBS) to host the event in recognition of the latter’s role as the standards certification body in Kenya. In the past, an average of 20 per cent of the papers presented at the conference have been published in renowned quality management journals. Similarly for the 19th ICIT, submitted papers would be considered for publication upon presentation to the Emerald. Indeed, several topics of interest under quality management advances were under discussion by scholars and practitioners in the field. The uniqueness of the ICIT conferences is that discussions are open to challenge and input from panels and audiences who are renowned professionals. The broad objective of the conference was to consider the impact of ISO implementation on TQM. More specifically, the conference provided a forum for discussing contemporary application of TQM theories and practices. Email: jochieng@kim.ac.ke

July 2015 Management Magazine

Top Events

TOTAL FREEDOM WITH VISA LAUNCH

(L-R) Victor Ndlovu, VISA Kenya Country Manager, Anne Kinuthia, Lending Director, Barclays Bank Kenya, and Ada Eze, Managing Director, Total Kenya.

DATE: 26TH MARCH 2015 VENUE: STATION, LIMURU ROAD PHOTOS: LEE MWANDIKI

Emily Kaiga (right) and Titus Wainana both from VISA.

Edward Kerich, Director Risk Assurance, PWC, (right) and Alban Tarneaud, Marketing Director, Total Kenya Kenya.

(L-R) Elsie Wangai, Ibrahim Gathungu and Charlene Mwangi all of PWC.

KIM CERTIFICATION PROGRAMMES LAUNCH

(L-R) Chris Lane, Director of Global Operations, Humanitarian Leadership Academy, Linus Gitahi, CEO, Nation Media Group and Dr. David Muturi, CEO, Kenya Institute of Management. (VWKHU .LRNR 5HYHQXH 2IĂ&#x20AC; FHU .HQ\D Revenue Authority (left) and Margaret Makanga, Pear Noble Consultants Ltd.

July 2015 Management Magazine

DATE: 25TH JUNE 2015 VENUE: LAICO REGENCY PHOTOS: SAMMI NDERITU

(L-R) Wangari Kabiru, Business Marketing Specialist, Arnold Ambundo, Project Coordinator, REDR UK Sub Saharan Africa 5HJLRQ 2IĂ&#x20AC; FH +LOODU\ .LSODJDW 3URMHFW $VVLVWDQW 5('5 8. $IULFD 2IĂ&#x20AC; FH DQG 6XVDQ Ndolo, KIM Member.

Cover Story

Will Kenyan brands reap from digital migration? Digital migration is expected to change the dynamics of the broadcasting industry. What does the future hold?

By JOE OTIN

recently watched a recording of the first ever televised presidential debate in the 1960 elections between Senator John Kennedy and Vice President Richard Nixon. I was amazed at how that type of television content gave rise to a defining moment in how Americans choose their leaders at every general election. It also became clear to me that presidential candidates who embraced and used communication technology in

July 2015 Management Magazine

innovative ways got elected. Three examples come to mind -President Kennedy with television, President Carter with the telephone and President Obama with social media. Back home, we saw tremendous changes in our political landscape following the liberation of airwaves in 1992, which also happened to be the period of my awakening into the media. Some say toppling of the ruling party in 2002 was possible because of the rise of independent media, especially FM radio stations around the country. But more importantly, increase in the number of radio and TV stations in the country offered advertisers an opportunity to reach consumers more effectively and efficiently. Audiences were pleased by the diversification of content and growing number of genres that were not previously broadcast on terrestrial TV and radio. Both the tax man and investors benefited from the incredible growth rates seen

within the industry over a period of two decades. Some years witnessed over 40 per cent yearly growth rates in money spent on advertising. Analogue to digital We have recently been the unfortunate witnesses to a bruising fight between the regulators and an association of media houses on migration of broadcasting services from analogue to digital. This episode could have been avoided if the process began with a consultative approach between all stakeholders, as numerous examples of the same initiative have shown in countries around the world. Donâ&#x20AC;&#x2122;t get me wrong, I am not underestimating the sensitivity of this issue as I am aware that the local media industry commands up to a billion dollars in gross advertising expenditure, which is about two per cent of our Gross Domestic Product (GDP). Any unnecessary changes to the modus operandi of the industry could have serious repercussions within the stakeholders, and that is why it was necessary to work very hard on the stakeholder

Cover Story management, which wasn’t done. You’d rather spend more resources on the right things at the beginning rather than on the wrong things at the end, which is what happened. That notwithstanding, the ship has sailed and digital migration of television touches the various stakeholders in different ways. Here, I would like to focus on what this means to brands. Media companies will now focus on developing content rather than a combination of content development and content distribution as it were in the past. This means that, as we saw in the mid-nineties to the early 21st century, we will see diversification of content, both local and international. There are a few genres that will rise in Kenya and those are local sports coverage, Kenya music and entertainment shows, comedy, romantic and dramatic local soap operas that air daily. The increase in content generation for TV is a boom for programme producers especially those who are able to deliver exclusive content that touches the hearts and minds of many, and it will also benefit those who are able to attract niche markets that are very attractive to brands, such as the elite audiences and middle income mothers. What this means for a brand is that they are able to target audiences with laser focus, and pay a commensurate amount for those audiences. The beauty of it though, is that they can reach a truly engaged audience, especially at the beginning of this new phase in history. Localized content

Under the new system, content developers send their programmes to content distributors, who then deliver it to the audiences around the country and from what we hear, there is the ability to deliver unique content from one media house to each base station. This means that localised content is now possible, and given the fact that media houses can now focus on content, we may at the onset see localised news segments which later transition to completely localised news bulletins for each region in the country. This also applies to advertising placements, which can be delivered as per the regions in the country. Breaking down advertising distribution in this way makes it cheaper to reach audiences in specific regions for the smaller companies, but increases the investment for brands that wish to reach national audiences. The best part about this is that the Return on Investment (ROI) would be greater and more accurately measured for the national audiences and the advertising reach plans that can be tailored according to a company’s marketing objectives. The Kenya Audience Research Foundation (KARF) has embarked on improving media research in the country based mainly on the fact that TV digital migration requires better measurement, which can only be done with new technology. Historically,

we know that better media measurement leads to more advertising spend because brands have evidence of the media effectiveness. That is why even though Nigeria’s economy is six times larger than Kenya’s, their advertising spend is only 30 per cent more. This is because the industry in Kenya was able to agree on media measurement earlier than their Nigerian counterparts, which has led to a standard media currency that builds industry confidence. Improved measurement leads to increased investment in advertising and the ad agencies are talking about moving to programmatic advertising which improves the optimisation of media spend, mainly based on automation of audience targeting through complicated algorithms that calculate budgets, audience reach goals, segmentation and rating point objectives. Programmatic media purchase for TV requires additional software investment from both the media and ad agencies as we develop an integrated system for media trading which is likely to be tailor-made to suit local needs and nuances. Overall, digital migration of TV has the potential to be the catalyst to take the local entertainment industry to the next level in terms of increased investment, talent development, content creation, ROI measurement and satisfying audiences above all. Email: joe.otin@icloud.com

The increase in content generation for TV is a boom for programme producers, especially those who are able to deliver exclusive content that touches the hearts and minds of many, and it will also benefit those who are able to attract niche markets that are very attractive to brands, such as the elite audiences and middle income mothers.”

July 2015 Management Magazine

Cover Story

The power of digital platforms in brand equity In the last decade, competition for brands has gone a notch higher, with digital platforms being used to popularise brands among customers. The more a product is known, the merrier. By MBUGUA NJIHIA

ost Chief Information Officers (CIO) and Chief Marketing Officers (CMO) I know have heard the clarion call of shifting consumers to mobile platforms. However, many are afraid of innovating and engaging their consumers in digital platforms away from the cyclic nature of brand promotions that have become boring. This corporate rigor mortis is caused by lack of understanding on available technologies and platforms and how to best utilise them to meet a varied set of corporate objectives and Key Performance Indicators (KPIs). The modern consumer is always connected, therefore, understanding the different platforms will empower you to tailor the solution mix to fit your agenda. You must turn every interaction into a transaction- whether that translates to a sale or the addition 20

July 2015 Management Magazine

consumer data that allows you to better profile and thereafter serve your customer. Web The internet has seen steady growth in its usage with the latest statistics putting us at more than 26 million users across both web and mobile. Away from corporate brand sites, the opportunity to engage consumers has grown exponentially and consumers have come to expect that the brands they love will connect with them in the same way that other digital consumables do. There is need for all services to adapt gracefully between the medium that the consumer wishes to use. Things should not break in the user experience when one moves to mobile from desktop. Mobile The mobile application train is also not one to be

Cover Story missed. Seventy five per cent of all new phones purchases from the leading mobile operator are smart devices. Email and Push are arguably the most underutilised channels on mobile, which is surprising as they offer more affordable and traceable means of consumer engagement. Push notifications allows your application to notify a user of new messages or events even when the user is not actively using your application. Players such as Facebook, WeChat and Viber among others have also opened up their messaging platforms for brands who can now be part of the conversation where it happens as opposed to trying to redirect consumers to an alternative experience. For the sake of 100 per cent coverage, Short Message Service (SMS) and Unstructured Supplementary Service Data (USSD) should form part of the mobile arsenal. Payments The ultimate agenda of any consumer engagement is making a sale or increasing the average return per user and making it possible for that all-important transaction to take place with ease. This is a sure way to drive the happiness index while making a big impact to your bottom line. The beneficial outcomes of a solid digital strategy for consumer on-boarding, sales and retention are many with the top two in my books being; business intelligence that allows for demand activation and generation and the reduced costs of doing business brought about by top of mind awareness and brand loyalty that feed off the ‘always on’ connection. Things to think about For the first time, consumers are looking to engage post purchase and they also need someone to talk to. Where can you be found? How available are you? Have you (personally) applauded or vented through Facebook, Foursquare, Twitter or the myriad of forums and online fireplaces where we congregate to express our virtual selves? Online and mobile media have become the defacto outlet for self-expression and their virtual nature lends a “wildfire” character that can see information passed on to thousands in the span of a few hours. The phone is a “Swiss knife” having all manner of utilities, for example the camera and the microphone. How can you start the drive towards the participatory consumer? Brands should be like family right? Never underestimate the desire that the customer has to be heard and possibly also revel in some five minutes of fame. The digital sphere has a plethora of calendars that control the lives of users- the very consumers that you seek to connect to. Have you ever thought of adding value to over 15 digital million calendars in the market? What would you do differently, or what

Steps to build your brand’s equity Accept that perception is reality Strategically communicating your brand attributes such as trustworthiness, innovative, proven consistently across all media platforms lays the foundation of how your brand is perceived. Good design What does your company look and feel like? This is important as that is the image which your brand projects. As a brand, invest in an ambassador with expertise in brand identity and design. Own the brand Always remember there is a dollar sign associated to a brand value and branding is not only a good sense, its dollars and cents. Additional information from: www.entrepreneur. com

uplift would your brand see in the next quarter if you had the ability to post to the calendars of two million people in your market of interest? Digital footprints are all over the place with the creators usually not too far off. Have you thought of location based engagements? Being present and available just when the consumer needs you? The tools There are many vendors who offer tools that promise the world. Key is to curate your own toolkit whose items you know will deliver your desired vision of interaction. You must orchestrate your cross-channel engagement, using data to create a single holistic view of your customer to allow for the personalization of experiences that will in the end give a good if not great return on investment. Tool mashups assembled from different providers and services are common. Oracle (Oracle Marketing Cloud), IBM (IBM Commerce portfolio) and SalesForce (Salesforce Marketing Cloud) offer some fully featured tools but the price points stand in the way of widespread adoption. Markets have become conversations and the only foolproof way to delivering on brand equity is to engage in the right content and form; eight times out of ten this will be digital. Email: mbugua@symbiotic.co.ke

Online and mobile media have become the defacto outlet for self-expression and their virtual nature lends a “wildfire” character that can see information passed on to thousands in the span of a few hours.” July 2015 Management Magazine

Cover Story

The next marketing frontierpulsating Generation Z

Marketing trends are changing swiftly and with the change comes the need to make adjustments which will captivate the new audience By RONALD CHEPKWONY

he days of catalogues and radio marketing are long gone. Like most marketers, you may already be clued into the “Millennial” generation - as the children of the Baby Boom have been called: “The most researched generation in history.” Today’s youngest consumers, also known as Generation Z or the ‘selfie’ generation, are looking for a social and intuitive way to absorb the barrage of sights and sounds that make up today’s advertising industry. Dubbed the “holy grail for brands” by Marketing Magazine, these consumers are a highly coveted yet hard-to-reach market segment. They come in all shapes and sizes: either with pants up or down. Their fashion sense is somewhat wanting, but that is only in your eyes. They have bigger and more expensive phones than most of the management executives. The time spent on these 22

July 2015 Management Magazine

devices is longer than the time they interact with other humans in conversation. When you talk to them, you get a sense of bravado. They talk with such boldness and optimism, sometimes of things we may not fathom. But, slowly, companies are adjusting their value proposition to include them, as they are rapidly coming into their own in terms of influence, consumption and spending power. However, this generation has distinguished itself from Millennials in very significant ways - from their deepest aspirations to their preferences on social networks. Statistics from a recent Ford trend report show that besides Generation Z being freer and lacking any fear, they are also more adept to known brands. And like all new generations, their behaviours will soon be shaping the status quo. So who are Generation Z? They were born in the late 90s and mid 2000’s. While Generation Y grew up with computers, Generation Z has grown up with touch screens. Generation Z are adept researchers who know how to self-educate and find information, being in an information age that is socially connected via networks. These social networks carry as much weight, if not more than actual physical networks. Research

Cover Story Characteristics of Generation Z Generation Z is part of a generation that is global, social, visual and technological. They are connected, educated and the most sophisticated generation ever. They are the up-agers, with influence beyond their years. They are the tweens (aged 8 to 12) teens, youth and young adults of our global society. Comprising nearly two billion people globally, they are early adopters, brand influencers, social media drivers, pop-culture leaders. They donâ&#x20AC;&#x2122;t just represent the future, they are creating it. Generation Zâ&#x20AC;&#x2122;s have been born into the crisis period of terrorism, global recession and climate change. It is predicted that they will spend their young adult years in a time of economic and social renewal. They are the students of today and university graduates, employees and consumers of tomorrow. Source: www.generationz.com.au

shows that 33 percent watch lessons online, 22 percent read textbooks on tablets, 32 percent work with their classmates online, while 52 percent use YouTube or social media for typical research assignments. If your brand or company is trying to figure out how to reach Generation Z, consider these three aspects as you assess your brand promise to suit your future customers.

Thirdly, your brand engagement will also have to change. Your communication, your modes of payment and any other form of engagement will have to be in tandem with the expectations of Generation Z. With 81 percent using some kind of social media, and an attention span of only eight seconds, Generation Z-ers aren't all that interested in long-form content. Invest more insnackable content for new media channels to keep them excited. The increase in communication platforms has created the need for constant content creation and output, taking up a larger proportion of the marketing budget. Take a look at your current budget and forecast, does new media have a similar or lesser proportion each year? If so, it is time to revise it. The best kinds of marketing campaigns are those that increase product awareness through a variety of mediums. Headphone pioneer, Beats by Dr. Dre launched a campaign (#showyourcolor) that used social media, television, celebrity endorsement and tangible materials to entice the young consumer. In a market where one right nudge can have a domino effect, embracing Generation Z is the new frontier for sustainability and growth. Email: ronald.chepkwony@brandintegrated.comom

1. Consistent brand engagement First, your branding will have to be an ongoing activity, not a once in a year engagement with consultants and the team. Every aspect of your company will have to breathe and live the brand values. A single slipup and Generation Z will jump ship. With a reach across continents, a voice across every social platform, Generation Z can make or break your brand. 2. Redefine or adjust your brand persona Secondly, you might have to adjust your brand promise. Generation Z are attracted to brands with character. They like rebellious brands, brands that defy the norm to rise above expectation just like they do. Unlike generation Y which wanted to be part of the group, Generation Z wants to stand out from the crowd. Ask yourself, if your brand was in the room, would other people notice it? 3. Invest in new media and cross platform campaigns July 2015 Management Magazine

Cover Story

Why predictive analytics is a cutting edge tool in marketing More companies are opting to use technology to predict future trends and capture the widening and changing customer base across markets. 24

July 2015 Management Magazine

Cover Story By MERCY KAWIRA

redictive analytics is defined as the capacity to predict future trends and probabilities using technology. According to The Data Warehousing Institute (TDWI) Research, the top five reasons why companies want to use predictive analytics are; to predict trends, understand customers, improve business performance, drive strategic decision-making and predict market and customer behavior. Predictive analytics varies from industry to industry. Education institutions would for instance want to find out geographical locations of current students and prospective locations, mode of advertising to use, courses prospective students from these locations would be interested in and source of funding trends (self-funded, loans, company sponsored, and bursary). Marketers are able to define new niches, how to reach these new niches, how to package products or services being offered, their preferred mode of payments and what products they would like (existing or new products). For example, insurance sales agents selling education policy would be able to identify from the existing data if there is a correlation between the hospital one delivers a baby in and their uptake in education policy, the child’s age when enrolled for a policy and the schools the children are enrolled in. This information would help formulate marketing strategies that can sell the policies and create partnerships with other institutions that would add value, thus improve sales.

correlations and to find causations. Causations here mean finding out why customers buying product A, would also buy product B. Causations define customer behaviour patterns. This would be important especially if both product A and B are from the same company. It would re-define the marketing strategies used to market both products. Predictive analytics benefits both customers and business entities. Organisations are able to achieve sale targets by investing in profitable customer segments as compared to the traditional broadcasting of marketing campaigns. It also deepens customer relations by encouraging product or service feedback, thus creating great customer support strategies. Predictive analytics requires trained expertise to support the platform, organisations that ask the “right” questions and investment. Predictive analytics is still in its early stages in Kenya and companies investing in it should be ready for disruptive changes. Disruptive in this case relates to disrupting organisations’ culture in terms of how they make business decisions, view customers and business processes overhaul to allow timely creation or repacking of products and services. It is also beneficial to customers since they will be spammed less by sale agents and buy goods and services that meet their needs at their preferred outlets with relative pricing. In case you think predictive analytics is far-fetched, here are some day to day examples; Google thinks ahead of you by predicting what you actually want to google. If you are logged in using your Gmail account, google goes ahead to personalize whatever you’re searching for which is relevant in your context. Your Facebook news feed and advertisements that appear when you login are part of predictive analytics.

Predictive analytics is still in its early stages in Kenya, and companies investing in it should be ready for disruptive changes.”

How predictive analytics works In a recent interview, Dennis Prombiant, managing principal at Beagle Research Group indicated that for predictive analytics to work, it must be done right. This means that data has to be relevant, updated and data stores cleaned to ensure accuracy. He also indicated that predictive analytics is used to identify

Email: mkawira2010@gmail.com

OVERALL WINNER

Cover Story Brands must have a visual identity that captures the brands personality, mystique and emotional values in a nutshell.”

Gichara. “People are becoming more sensitive to their lifestyles where quality of service delivery is key.” In order to capture the attention of luxury buyers, luxury brands need to focus on seven aspects in order to design and market a true luxury experience. Seven aspects luxury brands should focus on First, the brand needs to not only perform at a fundamental level, but also at an experiential level, meaning, the emotional value of the brand the consumers buy into which goes beyond what the product represents. Secondly, the brand should generate ongoing relevance despite having a lineage, heritage and years of mastery as a selling point. This is commonly found in the hotel industry, where brands have a rich heritage, but with strategic marketing, they are able to remain dynamic and raise hospitality standards in both their country of origin and host countries. A luxury brand that thoughtfully pursues lifestyle can capture tremen-

dous upside—but every brand needs to find its own way and pace. Just like traditional craftsmanship, building a lifestyle brand requires patience and meticulous attention to detail. And, just like luxury products, with the proper attention and care, luxury-lifestyle brands can become more valuable over time. Thirdly, brands need to create scarcity – tactical driven paucity. This kind of scarcity is promotional in nature, like Limited Editions, which generate artificial desire and demand. Brands commonly known to employ this tactic are usually in the motoring, clothing and hospitality industry. Fourthly, brands must have a brand visual identity that captures the brands personality, mystique and emotional values in a nutshell. The luxury brand should create an aura that is more emotional and sensual to distance it

from mass premium brands. Luxury brands need to be strategic in the physical location, customer interactions touch points and the salespeople presentation of the brand. They should create a unique indulging experience. Luxury consumers have become more discriminating and demanding. They seek knowledgeable, professional, trusted and reliable collaboration to help them manage their stature and lifestyle, therefore niche media would be appropriate. A fifth consideration for luxury brands is to go beyond traditional advertising. They should be less “in-yourface” to maintain the aura of exclusivity. Johnny Walker, for example, uses successful people’s life journeys to pass on a message that the brand is a part of success. The sixth consideration is to use Public Relations to convey supporting messages that may not be captured by advertising, but are by no means less important to create brand personality, mystique and emotional values, while maintaining ongoing relevance and dialogue with the consumer. This is especially important in seasonal trenddriven categories. Finally, luxury brands should set prices based on customer expectation and willingness to pay. Low prices can harm the brand value. Give the consumer enough justification to go ahead and try you. Premium pricing without substance does not imply luxury, yet consumers generate a mental luxury stature with the brand price range. Email: joyce.waithira@brandintegrated.com

July 2015 Management Magazine

Customer Service

Are you guilty of stereotyping your customers?

When a customer walks into a store or a hotel, they expect to be served without being judged based on their skin colour, perceived pocket size or dress code.

July 2015 Management Magazine

Customer Service By CAROLINE GATHURU

he Oxford English Dictionary defines a stereotype as a widely held but fixed and oversimplified image or idea, of a particular type of person or thing. Otherwise referred to as assumptions that have become ‘common’ knowledge, the world is full of stereotypes. These are typically attached to race, colour, creed, physical appearance, nationality, gender, disability, economic status, age and body weight. As stereotypes are said to be responsible for various aspects of human behaviour, are they also responsible for the outcomes of service delivery? Ruiseco, Nicole in a research piece titled How stereotyping affects customer service shares findings that common stereotypes affect customer service in different ways. With specific reference to the hospitality industry, where interaction between guest and employee is the entire experience, stereotyping guests is common, and service delivery is dependent on the lenses through which employees view guests. The research recommendations advocate for finding ways to reduce the amount of negative stereotypes associated with guests, which is critical towards improving service and guest satisfaction. A different school of thought that advocates for “Knowing Your Customer” calls upon service providers to know and understand customers beyond their face value, and learn more about their backgrounds, religions, cultures, countries of origin and socio –economic divides. It encourages organisations to make a deliberate effort to take into account the general assumptions that are made about different people in order to effectively serve them. With this in mind, what role does stereotype and stereotyping play in the world of service delivery? Knowledge is power Knowledge is power - the common phrase with Latin origins and commonly attributed to Sir Francis Bacon, behoves customer service agents to know and fully understand the qualities and characteristics of any given group, to aid the cause of handling a customer as they assume would be best desired. Understanding a group’s dynamics, especially in advance of service provision, goes a long way to effectively engage with them in a manner that has them more comfortable, and to create delightful experiences. What however needs to be carefully considered is a reflection by a Psychologist, Dr. Mike Leary. In his opinion, observation is fine and harmless, but when used in a critical way, then it becomes judgmental. This calls upon all customer service practitioners to draw the line between stereotyping and critical stereotyping for service.

Stereotypes as a result, may be carefully applied to profile customers, with a view to providing them with customised service. However, extreme caution needs to be meted to ensure that, with this prior information, the specific customer is handled more delicately. Depending on the general assumption one is faced with: where one would have exercised keen listening, intuitive listening would be a good alternative; where one would have had patience, gentle tolerance would suffice; and where one would have applied understanding, supportive discernment would provide a useful replacement. When customers stereotype service providers In her treatise on Ethics In Customer Service. Wendy S. Zabava Ford of Western Michigan University highlights that customers develop stereotypes of service providers, and this governs their interactions with them. They rely largely on their communication experiences during service encounters, to make buying and patronage decisions. Deception is most prevalent in sales contexts, where the common stereotype that sales people exhibit a willingness to give false impressions of their products and services, or even of themselves, prevails. It also isn’t unusual for service providers and establishments to be

It has been proven time over, that a number of stereotypes held as true, are not applicable in blanket fashion across the board.” accused of discrimination, and to develop stereotypes for peculiar behaviour. Common perceptions rally around discrimination based on perceived pocket size, physical appearance, dress code and race. This stereotyping, be it deliberately cultivated or assumed, has a direct impact on the brand position and ultimately brand equity. It has been proven time over, that a number of stereotypes held as true, are not applicable in blanket fashion across the board. It is therefore important to distinguish between knowing customers intimately, and ‘judging’ them. The golden rule of excellent customer service requires that service is delivered in a manner that has the engagement or interaction with the customer, steeped in respect, honour, dignity and integrity. Both parties need to be left with the desire to interact again, and to share their experience with others. With stereotypes at play running and ruining the world, customer service proponents are only left with the ammunition provided by Walt Disney to “Do what you do so well that they will want to see it again and bring their friends.” Email:cgathuru@life-skills.co.ke July 2015 Management Magazine

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Affordable training for healthcare workers The Kenya School of Medical Science Technology offers certificate and diploma courses for healthcare workers. By WINSLEY MASESE

iddle level colleges play an important role in enhancing human resource development in the country. They come in handy as they offer training opportunities for individuals who failed to meet university entry requirements. Kenya School of Medical and Science Technology (KSMST), a middle level college in Thika, churns out well trained and skilled manpower for the healthcare sector. “We target students who did not obtain university minimum requirements to pursue medical courses and nurture them from certificate and diploma level,” says the principal, Mr Jamlick Gitonga. Middle level colleges, he says, produce the greatest number of healthcare workers and their place cannot be taken for granted. “Courses offered at KSMST have been registered by the relevant regulatory bodies,” he says.These are some of the efforts by the institution to ensure graduates are recognised and competent in the market. Healthcare is a technical field and graduates must be tested on their competence. Central Memorial Hospital, which shares a compund with the college, provides students with the opportunity to put to practice what they have learnt. “We have hospital-based training. After lectures, students learn from the hospital in a setting that gives them an opportunity to immensely sharpen their skills.” Besides, it accords students the opportunity to make informed decisions pertaining to their career choice. Some 30

July 2015 Management Magazine

Courses offered at the Kenya School of Medical and Science Technology have been registered by relevant regulatory bodies. PHOTO: Sammi Nderitu.

Jamlick Gitonga, Principal, Kenya School of Medical and Science Technology PHOTO: Sammi Nderitu.

of them drop out of college if they can not handle regular contact with the sick. The institution has well-equipped medical laboratories in addition to biology, chemistry and computer laboratories. Devolved healthcare services “We observe the highest standards in our efforts to churn out graduates who are able to offer services for the common good of the society. The positive feedback we receive from employers is encouraging and we want to build on that to ensure we assist the country in the provision of healthcare manpower.” The institution is set to play a central role as county governments seek to

have healthcare services devolved. At a time when securing employment is proving to be a huge challenge, Gitonga says the college offers entrepreneurship courses to broaden the thinking of students towards job creation opportunities. The college targets fresh post-secondary graduates and those with basic training in health sciences who wish to advance their careers. “We grow their confidence by helping them understand that they are equally competent, because what they study, for example human anatomy, is the same as what other learners in the same field study all over the world This tends to boost their morale and confidence to perform like any other professional in the same field,” he says. Certificate and diploma courses offered by KSMST include medical laboratory technology, pharmaceutical technology, biomedical laboratory technology, health records and information technology, community and social work, nutrition and dietetics, psychology and counselling, environmental health and HIV/Aids Management. Email: masesewa@yahoo.com

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Transforming lives through CSR CSR projects are meant to transform the lives of people in the communities we live and operate in. Rachel Gathoni, KCB Foundation Manager Rachel Gathoni speaks to MANAGEMENT magazine on how Kenya Commercial Bank is actualising this.

counties: Taita Taveta, Baringo, Kwale and Narok. By the end of this year, we will have reached out to five more counties. The KCB Foundation plans to invest Ksh1billion in this sector for the next five years. What is the company’s ultimate goal in doing these projects? The idea here is to help chip away at the poverty and hardships that have robbed the dignity of many individuals and households across East Africa. We also aim at making a difference in the lives of those impacted by our programmes and most importantly lay the foundation for a better future for the generations to come.

hat’s the genesis of the bank’s Corporate Social Responsibility (CSR) projects? The current KCB Foundation initiatives are a progression from the community engagements of yesteryears that have always been part of the business. Before CSR became an integral part of business, the Bank was always active in supporting various community development programmes. The structured community programmes begun in 2007 when the KCB Foundation was established to undertake all CSR programmes in all the countries which we operate; Kenya, Uganda, Tanzania, Rwanda, South Sudan and Burundi. The initial focus of our programmes was in education, enterprise development, health, environment and humanitarian aid. What major milestones have been achieved out of these projects? We have equipped more than 50 hospitals in the East Africa region with lifesaving equipment for renal, maternal and paediatric healthcare. We have also enabled 60 children to benefit from heart surgeries and Kidney transplants. Through our education programmes, we have provided learning materials and facilities to over 820,000 children in public schools and our scholarship programme is now supporting 800 students from form one to form four. Another major milestone we are most proud of was development of the ‘Mifugo Ni Mali’ livestock value chain development programme. It is targeted at livestock keepers in the arid and semi-arid areas. We partner with them to enhance pro32

July 2015 Management Magazine

Rachel Gathoni, Manager, KCB Foundation. PHOTO: Courtesy.

ductivity through access to finance with the purpose of increasing their income. Which project has been the most successful? I would say the Mifugo Ni Mali,a livestock value chain development programme has been a game-changer. This is because it targets a sector that has been marginalised by past policies and other historical issues. It further helps us address many issues including increasing household income, creating jobs for young people and enhancing food security for the country. This is a niche we have chosen to invest in. The programme focuses on market organisation and development, address productivity and nutrition challenges that have limited the sector and led to low returns for the farmers and provide access to financial products and services. Through the Mifugo ni Mali programme, we offer interest free loans to livestock farmers cooperative societies in arid and semi-arid counties to help them commercialise their trade. We have so far extended this project to four

Why do we still have high poverty levels despite the many CSR projects that Kenyan companies have invested in? CSR is a rapidly growing space. I believe it is better to do something than nothing at all so I commend all the corporates and individuals who help those in need. The problem of poverty is large and needs to be tackled by each one of us at an individual and organisational level as well as in partnerships with Governments. So I guess the question would be what has each one of us done to defeat poverty? Has CSR achieved its target of making the world a better place? Definitely, yes. There are many problems that need attention and no one organisation can reach out and help everyone. But for those who receive support and assistance we make life better and brighter. Where do you hope to see KCB Foundation in the next five years? We want to be known as the organisation that changed the poverty narrative that has afflicted our country and the African continent as a whole. Email: management@kim.ac.ke

Advertising Feature

Sacco eyes share of banking pie

Antony Mwangi, CEO, Unaitas. PHOTO: Sammi Nderitu.

From a humble tea farmers Sacco, Unaitas now boasts of thousands of members with assets worth billions of shillings By FRANK OLILO

I 34

t is impossible to have a discussion about Kenyaâ&#x20AC;&#x2122;s KSh335 billion Sacco movement without mentioning Unaitas. From its humble beginnings as a ru-

July 2015 Management Magazine

dimentary investment group for tea farmers 22 years ago, Unaitas has grown to be one of the largest Saccos in the country, and in Africa with more than 250,000 members and growing each day. As at December 2014, Unaitas had KSh7 billion worth of assets and 20 offices in its branch network across the country. With a share capital of KSh 2.3 billion and an ambi-

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tious target to see this grow to KSh 3.4 billion over the next 18 months, Unaitas intends to tap into emerging opportunities in the country’s growing financial services sector and grow the wealth of its members exponentially. The genesis “We started Unaitas, then Muramati Sacco owing to a vacuum which existed in the financial services space,” explained Mr. Antony Mwangi, the CEO of Unaitas. “Our main clientele at the time was tea farmers who were considered a high risk group to commercial banks, so our founding members came together out of a need to access facilities that banks could not give them.” Since then, Kenya’s Sacco movement has grown to more than a 3.3 million members, with a colossal KSh240 billion in savings as at last year. Unaitas has been part of this growth and in some cases defined the rules of engagement and as the organisation gears up to transform into a bank, Mwangi is confident that they have the muscle to take on commercial banks. “At 250,000 members we are the biggest in Kenya and in Africa. We have a four-year strategy which we kicked off last year (2014) to transform into a bank and list on the Nairobi Securities Exchange (NSE),” says Mwangi. Mwangi further explains that Unaitas’ strategy is focused on using technology to develop a universal banking model that appreciates the value of low income customers. Unaitas’ business model is focused on creating a streamlined financial infrastructure that eases service delivery to consumers taking strategic risks that take into account consumers’ insights and leveraging on technology. “We want to combine an agency banking model with a mobile banking component to have a hybrid network where our members can access key services at a fraction of the time and cost that is above the industry average,” he stated. In addition to studying financial management to graduate level, Mwangi, who has been with Unaitas for more than 15 years- ten as CEO, also has a post graduate degree in computer science and is at the forefront of ushering the Sacco into Kenya’s increasingly technology-centric financial sector. “Technology changes rapidly and we have to change with it. In fact, the future’s battle front among Saccos and commercial banks is technology and we are already seeing brick and mortar establishments playing less and less of a role in how customers access financial services,” he says.

A new face and phase Technology is not the only change point in Unaitas’ march towards the top of Kenya’s highly competitive and dynamic financial services sector. In 2012, the Sacco rebranded, giving it a face that would go with its new national look. “This was a time that the country had been divided by politics and we sought to have an outlook that inspired Kenyans to unite under the banner of economic enhancement, hence the name which effectively means unite us,” explains Mwangi. Mwangi states that the re-branding exercise left the company with valuable lessons which are still relevant todate. “Our rebranding was very expensive but in the end it was worth it and still continues to bear fruit. The first thing that brand managers need to understand is that rebranding is a delicate balance between getting

The Sacco movement in this country has grown because we accepted to take on risks that commercial banks were not willing to take on at the time. Our commercial banks have since started going downstream which means that this earlier ignored demographic is actually more viable than previously thought. a new identity and retaining your rich history,” he explains.”In this regard, even as you introduce new products or a new portfolio, you still need to maintain uniform standards so that a customer from a Unaitas branch in Mombasa would not feel any different if he walked into a Nairobi branch.” With hundreds of thousands of members, Unaitas has to ensure that its members get the services they need, when they need it and at an affordable cost. Mwangi further states that Kenya can leverage on the benefits of financial institutions like Saccos to foster national integration and drive the government’s development agenda. “In developed countries, we have the economy dictating politics but in developing countries, the reverse is the situation and this delays us from moving ahead with other economic initiatives,” he observed. With the Treasury and Central Bank having recently introduced radical policies aimed at catalysing consolidation in the banking and insurance industries, the next focus seems to be shifting towards Saccos and as leaders in their field, Mwangi is confident that Unaitas will maintain its stronghold in the sector and carry the business into the new age. Email: management@kim.ac.ke July 2015 Management Magazine

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Touching lives and growing reputation Initiatives in CSR not only give to the community but also benefit the organisations engaging in them By JAMES RATEMO

or any company that values its reputation, giving back to the community is key to boosting its brand awareness and cultivating goodwill among its clientele. Corporate Social Responsibility (CSR) also called corporate conscience, corporate citizenship or responsible business, supports an organization’s mission and outlines what the company stands for. Kenya Reinsurance Corporation MD, Jadiah Mwarania says his company has centred its main CSR activities on disability. Previously, the corporation supported children’s homes, participated in the annual Mater Heart Run, StanChart Marathon and also sponsored academic excellence awards in Kenya’s tertiary institutions. In 2011, the corporation reviewed this strategy and opted to sustainably focus on one major CSR initiative to establish impactful long term stakeholder value. There were various considerations, but they eventually launched a campaign dubbed Niko Fiti (I am fit) Ability beyond Disability for the disabled persons. Since its launch, the company has been spending between KSh30 million and KSh80 million annually to buy specialised devices for the disabled persons across Kenya The campaign’s objective is to reduce stigma for persons living with disability and provide devices that will provide them with accessibility and mobility. Collaboration to cut costs To create awareness and sensitize individuals on issues of persons with disability, Standard Group (SG) was approached to be the media partner. The implementing partner approached 36

July 2015 Management Magazine

Jadiah Mwarania, Managing Director, Kenya Reinsurance Corporation, (left) and Abdulswamad Nassir, Mvita Member of Parliament with other supporters at a CSR activity in Mombasa County. PHOTO: Courtesy.

Association of the Physically Disabled of Kenya (APDK) whose role is to provide direct linkage and platform to project beneficiaries. “We engaged APDK because they know the terrain in the disability world and would identify the beneficiaries easier than we could,” says Mwarania. “We set aside a percentage of our profits annually to give back to community through the Niko Fiti campaign. There are still very many disabled people untouched and we need more corporates to step in,” said Mwarania. The campaign has seen over 2000 assistive devices distributed to the needy persons across the country. Sustainability of activities After achieving mobility for the beneficiaries, the next focus is to empower them economically, Mwarania reveals.

“We need to give the disabled persons trays, storage boxes and umbrellas which can be attached to wheel chairs. We will identify strategic places where they can come and do their business and train them on basic business skills,” he added. Boosting visibility of company Mwarania says companies with active CSR activities reap increased visibility as the people whose lives they touch get to know more about them. Collaborating in CSR activities also helps to cut costs and enhance efficiency since it ensures companies are not distracted from core activities. Other sectors that Kenya Re believes could benefit from CSR include school feeding programs, helping spinal injury accident victims and tree planting. Email: jratemo@gmail.com

SMS your name to: 21117

@kimkenya

Kenya Institute-of-Management

Executive Chat

Kenya’s insurance sector can do better, says CEO Gerge Otieno says insurance companies in Kenya need strong regulations and increased capitalisation requirements to weed out malpractices By JAMES RATEMO

avigating the murky waters of Africa’s insurance industry requires tact and resilience. Mr George Otieno, Chief Executive Officer (CEO) of the African Trade Insurance Agency (ATI) has mastered the industry and believes the sector has a bright future. In 2014, ATI posted a KSh 327 million profit (USD 3.4 million), which represents a 130 per cent increase over 2013, a record profit for the third consecutive year. “We are now looking at about USD 7 million profit next year. I can attribute our strong growth to infrastructure-driven demand in the region. We are now insuring a record number of contractors and suppliers. I have also noted growing appetite from banks supporting the SME sector,” explains Otieno. Otieno notes that when he joined the company five years ago, it was making losses but for the last three years, ATI has been posting profits incrementally. “Foreign investors and banks deem Africa as a risky investment destination hence they keep away or charge higher interest rates. Once they know somebody can take that risk, they are willing to venture into the market,”he notes. In addition to investment insurance, Otieno believes that people are getting more aware that sabotage, terrorism and political crisis are becoming real threats for businesses. “Westgate was restored at about USD 50 million (KSh 50 billion) because it was insured. Businesses must take precautions to avoid unrecoverable losses in case of unforeseen eventuality,” says Otieno. The MBA holder from University of Lagos, Nigeria, believes insurance is a career worth pursuing especially now that it has taken root and is more understood in Africa unlike in the past. “Our existence has seen the risk averse banks lend even without tangible security because we cover their clients’ defaults,” Otieno observes. Nearly 80 per cent of ATI’s current business involves banks covering direct loans as well as their 38

July 2015 Management Magazine

trade finance facilities for their clients. ATI also issues counter guarantees on bonds. Management style Otieno believes in giving people freedom and opportunity to be creative at their work. He never uses a stick to manage people but lets them be, provided they attain their targets. He singles out time management where he allows employees flexi-time provided they deliver. “I do not stick to the 8 am to 5 pm work schedule and I do not move around to really check if they are at their desk. I believe people want to be given an opportunity to grow and to be accountable,” he notes. Rewarding hard work For Otieno, no hard work goes unrewarded and that guides his approach of motivating employees. “Through a performance management system, we make sure best performers get rewarded through a bonus. We also reward through salary increment for those who perform to the comapny’s expectations. Otieno is also keen on talent retention since the cost of recruiting is prohibitive, considering the time and resources lost. Drawing from past experiences The CEO partly owes his success to the late Dr Geoffrey Griffins, who used to inspire him from the weekly career talks. “Griffins used to encourage us to be the best at whatever we were doing. His motto was that if you are a tea boy or tea girl and given a cup to wash, ‘you wash as if it had never been washed before.’ His late mum wanted him to be a doctor because that was a profession she considered important. “Somehow I ended up treating people in a different way with my insurance career.” Otieno beleives that in order to succeed as a CEO, one should balance the interests of the company’s stakeholders, staff and customers. No one, he advices, should be taken for granted. Limited free time His position at ATI calls for a lot of travelling but he spends free weekends with family and some occasional golfing on Saturdays. He also loves reading newspapers, especially business journals.

Executive Chat Malpractices in the Insurance industry To the few unscrupulous firms who fail to pay claims, he says they are spoiling the good name of the industry and lose opportunities for the company in terms of good marketing. â&#x20AC;&#x153;Any serious company should pay claims because that is a better way of marketing than going on TV to say we cover this or that. Insurance is a long-term investment and does not favour those in it for quick money,â&#x20AC;? he advises. Companies that are not well capitalised, he reveals, often delay paying claims. In his opinion, laws should be changed to ensure insurance companies are well capitalised. That would probably cut the number of insurance companies from 45 to around 20, but restore sanity in the industry. Otieno says that would close out opportunities for companies that act like brokers, and fail to pay every time they are faced with a big claim. The lean number would also eliminate the price undercutting currently experienced in the market where many firms are struggling to survive. The market, therefore, needs strong regulations and even increased capitalisation requirements to weed out malpractices. South Africa for instance with a premium income of USD 50 billion has around 20 insurance companies, while Kenya which has about USD 1billion premium income has about 45 companies. This is the reason behind the rampant rate-cutting, making

In order to succeed as a CEO, one should balance the interests of the companyâ&#x20AC;&#x2122;s stakeholders, the staff and the customers profitability an uphill task. Nigeria used to have a similar problem but that was sorted when it changed the law that required capital of USD 20million up from USD 5 million to start an insurance company. This saw the number of insurance companies fall from about 100 to almost 35. ATI plans to expand into West Africa through a partnership led by the Economic Community of West African States bloc that is expected to see most of their member countries join ATI in the next few years. In 2014, Kenya Re became ATIâ&#x20AC;&#x2122;s newest shareholder and for the first time in its history, ATI made profits purely on its underwriting business and also crossed the USD 1 billion (KSh 130 billion) exposure mark. This reflects the companyâ&#x20AC;&#x2122;s long-term strategy, which has seen its portfolio transform to include more stable and renewable commercial risk businesses, involving transactions that cover companies against various payment default risks. Email: jratemo@gmail.com

0U *HRUJH 2WLHQR &KLHI ([HFXWLYH 2IĂ&#x20AC;FHU (CEO), Africa Trade Insurance.

July 2015 Management Magazine

Tactics

Steering excellence through best practice tours More than 19 companies benefited from the First Business Excellence Conference and best practice tour organised by KIM and MPC. By MANAGEMENT WRITER

he Kenya Institute of Management (KIM) has remained steadfast and committed to steering and championing excellence, competitiveness and integrity in individuals and enterprises in Africa. The Institute has adopted several tools in actualising this initiative, including best practice learning tours, which are an integral part in organisations’ continuous improvement journey. One of the trips that has been beneficial to Kenyan companies was organised by KIM in conjunction with Malaysia Productivity Corporation (MPC). More than 19 companies benefited from the First Business Excellence Conference and best practice learning tour that took place in Kuala Lumpur, Malaysia from 17 to 20 June 2014. “I enjoyed the trip and will continue communication to keep the ideas identified moving. I was able to get more than was in the original program,” said H.E. Gerald Githinji, Deputy Governor, County Government of Kiambu. Mathew Gitagia, Assistant Director, Administration, Kenyatta National Hospital said it was a tour worth a repeat. “We learned so much. We intend to present our experience in the next senior management meeting,” he said. Tours to best practice organisations for hands- on learning were organised to ensure learning was focused on the participants’ business needs. Participants toured eight different world-class

Wins for the delegates 0RWLYDWLRQ E\ YLVLWLQJ EHVW companies and observing the best practices in productivity improvement of respective sectors in Malaysia. )RFXVLQJ RQ IXQFWLRQDO FRPSDULVRQ of specific processes with similar ones within their industry and business line. ([SRVXUH LQWR EHKLQG WKH VFHQHV view on operational, management and people development aspects of the companies. $Q H[SHULHQFH LQWR XQLTXH YLHZV on some of the best practice examples of operational excellence and supply chain management following the kaizen methodology that can be found anywhere in the world among other key learning areas. +DQGV RQ OHDUQLQJ DQG H[SRVXUH to practical ideas for sustainable improvement in their priority business process through the benchmarking. $FTXLVLWLRQ RI D QHWZRUN RI FRQWDFWV companies.

companies in Malaysia with the host companies demonstrating best practices in the area of operational excellence. Delegates had a choice to experience firsthand ideas on what these organisations have achieved in their quest for operational excellence. KIM and MPC

Tours to best practice organizations for hands- on learning were organized to ensure learning was focused on the participants’ business needs.” 40

July 2015 Management Magazine

plan to work towards having common projects of interests in productivity research and development, productivity training as well as organize an exchange program for the business excellence award program. In this year’s tour, participants will be required to make presentations on the challenges they are facing and on a plan of action. Participants will also be required to summarize lessons learnt throughout the program in a form of two-page report before the end of the conference. The Summary Report will be sent to the Kenyan Ambassador to Malaysia. Each presenter is expected to provide a 10-minute presentation, followed by a five-minute question and answer session. Why Malaysia? Malaysia was a basket case at independence. Indeed, the Kenyan government gave the country USD2 million aid in 1973. Malaysia is today a newlyindustrialised nation whose economy is manufacturing-based and exportdriven, and spurred by tech-savvy, knowledge-based and capital-intensive industries. It is one of the world’s largest producers of electronic and electrical products, which account for one third of its exports. Malaysia was ranked as the 24th most competitive nation among 148 countries in the Global Competitiveness Report (GCR) 2013-2014 by the World Economic Forum (WEF). It is categorized as a country in transition moving from the efficiency-driven to Innovation-driven economy. According to the World Bank’s ‘Doing Business’ report, Malaysia is in the top 10 ranking of nations friendliest to businesses next to Singapore. Manufacturing constitutes the largest single component of Malaysia’s economy. Tourism and primary commodities such as petroleum, palm oil, natural rubber and timber are major contributors to the economy. Email: management@kim.ac.ke

Corporate Case Study

Making medical insurance accessible There is need to revise the cost and packaging of the products to accommodate majority of Kenya’s population By SAMMI NDERITU

hile access to quality health care is a constitutional right, millions of Kenyans cannot afford to pay for health services at public or private clinics. A World Bank report notes that even with public health insurance available since 1966, only 20 per cent of Kenyans have access to some sort of medical coverage. “With the population at over 40 million and rising, it means as many as 35 million Kenyans are excluded from quality health care coverage. In addition, a quarter of total spending on health care comes from out-of-pocket expenses,” adds the report. Ms Caroline Munene, Managing Director, AAR

July 2015 Management Magazine

Ms Caroline Munene, Managing Director, AAR Insurance Limited. PHOTO: Sammi Nderitu.

Insurance Limited, observes that within the last five years, health insurance has grown steadily and now commands about 25 per cent of all the insurance premiums purchased in Kenya. She notes that the health sector has been growing at an average of about 20 to 25 per cent, making it the fastest growing area in insurance products today. “The market is still very large. Therefore, there is very high demand for health insurance cover since very few people have it. This challenges us to make insurance services more accessible to more people.” AAR started operating in 1984 with its primary business being evacuation of medical and accident casualties, both by road and air. With growth came change. In 2012, the company evolved into two independent companies; AAR Healthcare Ltd which provides medical services through its clinic network, and AAR Insurance Limited which offers a wide range of medical and non-medical insurance products.

Tactics

The gender agenda – what counts for employers? The Gender Agenda is now integrated in the Supreme law of the land - the Constitution of Kenya (2010) whose validity and legality is not subject to challenge by or before any court or other state organ. BY DR FLORENCE WACHIRA

omen’s participation in company boards has been increasing globally over the last few years. The largest gains have been in countries that have introduced quotas, but on average it still stands at about 12.7 per cent. In Kenya, there has been little progress in addressing gender disparities in spite of affirmative action and gender mainstreaming. Kenyan women in civil service are grossly under-represented in senior management and public decision-making positions. For example, a paper by UNIFEM (2010) titled Women representation and participation in the public and private sectors in Kenya: A Baseline Report notes that in job group P and above, there are 20.3 per cent of women, while in job group A-G, there are 24.3 per cent.

Why employers should engage in the gender agenda In The Global gender agenda, McKinsey& Company (2012) found that return on equity is 53 per cent higher on average for companies ranking in the top quartile of executive board diversity. Similar empirical findings (Canada, Australia, New Zealand) have shown that gender inclusive boards add more organisational value through quality of decision making, improved effectiveness of boardrooms, have directors who act with greater integrity and are more 44

July 2015 Management Magazine

vigilant about connection between management’s remuneration packages and performance. Additionally, people with different lifestyles and different backgrounds challenge each other more. This is because diversity creates dissent, and this is important to get any deep inquiry or breakthroughs. The dynamism created by dissent prevents organisations from becoming too insular and out of touch with their increasingly heterogeneous customer base, and as a result, working teams are able to come up with a wider range of solutions to business problems. When employers engage in the gender agenda, employees feel valued and respected. This has a significant positive impact on retention and employees are more likely to add value and boost overall productivity and the bottom line. This strategy will work effectively in teams and individual competencies will shine through. McKinsey (2012) notes that companies, which openly articulate values of inclusion and have a diverse workforce tend to appeal to a wider customer and supplier base. The Legal Framework The Gender Agenda is now integrated in the Supreme law of the land - the Constitution of Kenya (2010) whose validity and legality is not subject to challenge by or before any court or other state organ.

When employers engage in the gender agenda, employees feel valued and respected. This has a significant positive impact on retention and employees are more likely to add value and boost overall productivity and the bottom line.” Article 21 (3) on the Bill of Rights provides that all state organs and public offices have a duty to address the needs of vulnerable groups within the society including women, older members of society, persons with disability, children, youth, members of minority or marginalized communities and members of particular ethnic, religious or cultural

Tactics

Turning your employees into brand marketers Marketing has over the years been left to the marketing department. For synergy and better results, organisations now need to spread their nets wider by encompassing employees as brand marketers. BY CHRISTINE WANJIRU

avvy entrepreneurs know how important it is to make the most of every marketing opportunity. So why do many organisations overlook one of their greatest marketing sources - the employees themselves? Of course they have a budget for traditional advertising. However, their offices are filled with potential brand evangelists if only they learn how to make the most out of them.

July 2015 Management Magazine

Brand promises matter to customers - and research shows that they have a profound impact on business outcomes. According to Gallup, customers of the highest performing companies say that these firms deliver on their brand promise 75 per cent of the time. These companies have greater levels of customer engagement, which enables them to surpass their competitors in terms of share of wallet, profitability, and revenue and relationship growth. Gallup analysis Gallupâ&#x20AC;&#x2122;s analysis also shows that only 38 per cent of customers are fully engaged. The fully engaged customers have a strong emotional attachment to a company. As true brand ambassadors, they are the companyâ&#x20AC;&#x2122;s most valuable and profitable customers. Unfortunately, this is not always the case because sometimes, companies

fail to sustain brand ambassadors for various reasons. The most common reason is that employees do not believe and live or practice the brand promise. Most employees have good intentions, but their actions can be disconnected from their companyâ&#x20AC;&#x2122;s brand promise and what they should really be saying and doing. Recently, I went to buy lunch in a fast food outlet where I was attended to promptly at the counter and asked to wait for five minutes after which my lunch would be ready. Ten minutes later, I went back to the same counter and my lunch was still not ready. I was disappointed, especially after the cashier tried to explain some technicalities that had caused the delay. My interpretation of the incident - as a customer - was that the cashier lied to me. Employee brand engagement audit is not just a marketing or human

Tactics resource element; it should be taken very seriously by the management of any company. Any organization should realise that employees are the driving force behind the organisation’s brand. The customer gets to feel and have a connection with brand only through the employee. Equipping employees To maximise the power of this resource, however, the organisation must equip its employees with the knowledge and resources they need to be effective brand ambassadors. The employees must know what your organisation stands for and what makes it different from others in the marketplace. The employee must also understand your brand promise and be able to explain the most important elements of your brand identity. In addition, they must be empowered to deliver on your brand promise. In order for employees to keep this promise, managers need to con-

stantly assist and provide guidance on what is expected of them. They should also create structures and mechanisms to consistently instil brand values in the organisation’s culture, discuss brand behaviours daily, be role models and demonstrate brand behaviours. Recognising individuals who demonstrate brand behaviours will be a huge motivation to the employees. The employees should also be held accountable for exhibiting brand behaviours. Brand-engaged employees Brand-engaged employees will enjoy working in your organisation since they already have a relationship with your brand. Gallup has found that employees across a range of industries probably aren’t prepared to embody or

Employee brand engagement audit is not just a marketing or human resource element; it should be taken very seriously by the management of any company.

“behave” the brand promise. About four in 10 (41 per cent) workers, for example, strongly agree with the statement “I know what my company stands for and what makes our brand(s) different from our competitors.” And only about half of all employees know what is expected of them at work. Teach your employees that it is not just about the bottom line, but that your company makes a difference in the world. Whether you highlight the ways in which you directly improve your clients’ lives, or whether you make sure your employees understand the good you do with the income they generate for your company, if you can connect their work to a larger purpose, they will feel like they are working for a cause, rather than just for a paycheck. If your staff feel good about what they produce, they are going to promote your brand. Companies that are keen on employee brand engagement gain the customer, employee engagement, trust and revenue. Email:christine.wanjiru@brandintegrated. com

July 2015 Management Magazine

Smart Leadership

Soaring through the leadership storms

In the words of Dwight D. Eisenhower remember, just as panic and despair are infectious, so are energy and enthusiasm. As you look around your organisation, start viewing leadership as the art of getting someone else to do something you want done because he wants to do it. By KRIS SENANU

even years ago when I made my first angel investment in an ICT Company, I was excited just as the 25-year-old entrepreneur was about the venture. I was sure and almost put bets that it would become the greatest innovation of that era. At

July 2015 Management Magazine

the time, our country was just waking up to its own tech buzz and I believed â&#x20AC;&#x153;Silicon Savannahâ&#x20AC;? was on its way to total success. The prospects were so ambitious that they form an investment arsenal that have seen me fund another six ventures. However, while everything was well mapped on paper, something went horribly wrong and it folded in just under a year. But what went wrong? What would it mean to the young man whose hopes and dreams were literally rolled into this techenterprise? Would I be required to pump in more money and literally water and mulch it into the corporation of his dreams? How was I to even reconcile with the loss in investment both in capital and human resource? And most of all, a bunch of these brilliant minds had left their jobs pushed by the faith in this

Smart Leadership venture, how would they handle the loss? My greatest fear was the transition plan for each one of them and whereas the possibilities seemed endless, so was the infinite realisation that this was an end and a beginning. When people are under stress for a sustained period of time, three things are likely to happen; they can be predictable, bad or both. The human mind is wired in such a way that stressful conditions make us increasingly wary and likely to interpret each new sign as an indication of worse things lined up our way. As the stress builds up from the hardship, the person also gets drained and this fatigue provides fertile ground for pessimism. For a leader, it is assumed that we’re gifted with special talent that neutralises emotion and the ultimate drain that comes with devising strategies to stay afloat as a business with little or no remorse, and without attachment of whatever kind. The truth of it however is that these stress reactions affect both manager and employee and if not checked, they can lead to a complete failure of the business. From Executive to Operations I like drawing lessons from engagements where high-powered business leaders are invited to address participants on certain areas about leadership and management. More often than not, the guest speakers will at the onset announce their intention to learn from the participants as much as they are enthusiastic about sharing their experiences. They reiterate the importance of asking questions and making comments in order to engage. In reality, however, the speakers often do the complete opposite- they dominate the time with their story leaving little room for any discussions. As leaders, it becomes difficult when we think we have all the right answers and not put them out there and at the same time, by taking up the discussions we also inhibit our own learning making each of these experiences less productive at all. In hardships, the conversational aspect of leadership becomes a critical asset. Leading through a storm simply requires that you make your employees feel powerful by allowing them to share their ideas with you. While the burden of leading through hard times is assumed on you, it is your resolve and commitment to execute that gets you through, while the place of mentors catalyzes the process. More than ever, you need to start by ensuring that people are focused on things that are under their control by ensuring regular, honest, candid and consistent communication. You need to be seen as a reliable source of information; even if it means admitting you don’t know. A Conversational Approach The power of speech makes humans different from

animals, same way the power of conversation makes companies different from others. A leader needs to use conversations to set goals and the alliterative nature of the conversations not just appeals to the emotional but also builds mental intimacy; your employees are actually impressed that they can think like you or guide your ideas. The task of leadership is always assumed to be about people management dimensions, just as much is expected of this, self-management is also crucial to effective leadership. Tough times leave people feeling powerless. Therefore, it is important for the leader to help his/her people shift from the mindset of the passive victim observing things from the sidelines to that of a player in the midst of the turmoil. Anything you can do to keep them focused and empowered. Remember they always have choices and that, although we may not always control the final score, we have control over how we play. If we play with integrity, stamina, optimism and intensity, we can often surprise ourselves. And even if we lose, we can be proud of our performance.

While the burden of leading through hard times is assumed on you, it is your resolve and commitment to execute that gets you through while the place of mentors catalyzes the process.” Novartis chairman Daniel Vasella once said during an interview with Fortune magazine, “For many of us the idea of being a successful manager, leading the company from peak to peak, delivering the goods quarter by quarter is an intoxicating one. It is a pattern of celebration leading to belief, leading to distortion. When you achieve good results, you are typically celebrated, and you begin to believe that the figure at the centre of all that champagne-toasting is yourself.” We are living in times where titles and statuses are getting diminished and leadership being challenged by bigger and smaller forces. The most obvious reason leaders are getting enfeebled have to do with culture changes that have emboldened subordinates and technology which has enabled ordinary people to obtain information, engage in self-expression and make interpersonal connections in ways never witnessed before. As leaders, we need to keep our focus not on being the leader and having followers but in the context in which we can interact. It is about our ability to influence and persuade in hard times which are more effective than exerting control, not getting what we want, but getting what is best which is only achievable through thoughtful consideration. Email: kris.senanu@accesskenya.com July 2015 Management Magazine

Top Woman

Rwandaâ&#x20AC;&#x2122;s \RXQJ Ă&#x20AC; UVW female pilot At the tender age of four, Esther Mbabazi dreamt of being a pilot. Twenty-two years later, she is living that dream. Below is her inspiring story. sther Mbabazi wheels her bag towards the air stairs of the Boeing 737 sitting quietly on the tarmac at Kigali International Airport. Today she will be flying from Rwandaâ&#x20AC;&#x2122;s capital city to Juba in South Sudan - a short hop south with a flying time of around 1 hour and 20 minutes. But for Mbabazi, 26, it isnâ&#x20AC;&#x2122;t about the destination. As Rwandaâ&#x20AC;&#x2122;s first female pilot, itâ&#x20AC;&#x2122;s about the journey and her highest priority is to get passengers safely to their terminus. â&#x20AC;&#x153;Growing up I wanted to be a pilot when I was four,â&#x20AC;? says Mbabazi, who became a pilot for Rwandaâ&#x20AC;&#x2122;s national airline carrier, RwandAir, at 24. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;d never been inside a cockpit but I used to see a plane in the sky and I imagined that thing must be flown by someone. â&#x20AC;&#x153;I had to go for it. Even though it looked like a long shot, it was my only shot â&#x20AC;&#x201D; thatâ&#x20AC;&#x2122;s how I saw it so I went for it, and here I am.â&#x20AC;?

Dream big During her childhood, Estherâ&#x20AC;&#x2122;s family would move on a regular basis due to her fatherâ&#x20AC;&#x2122;s work as a pastor. But her desire to take to the skies never wavered, even after her father passed away in a plane crash in the Democratic Republic of Congo, when the passenger aircraft he was traveling on overshot the runway and hit some terrain. â&#x20AC;&#x153;From day one, he was always my biggest supporter or fan,â&#x20AC;? recalls Mbabazi, who lost her father before turning 10.â&#x20AC;?But an accident is an accident. Like I said, if someone gets hit by a car, you donâ&#x20AC;&#x2122;t stop driving. 50

July 2015 Management Magazine

â&#x20AC;&#x153;You canâ&#x20AC;&#x2122;t live life being scared and in fear of anything. If something is bound to happen, you canâ&#x20AC;&#x2122;t stop it.â&#x20AC;? Going all in Thus, Mbabazi continued to work toward her goal of becoming a pilot and achieving what no other woman in her country had done before. Once she completed high school, she packed her things and bought a one-way ticket to attend pilot school in Uganda.

Iâ&#x20AC;&#x2122;d never been inside a cockpit but I used to see a plane in the sky and I imagined that thing must be flown by someone. â&#x20AC;&#x153;When I went it was a one-way decision. If they bounce me, Iâ&#x20AC;&#x2122;ll just pack my things and come back. That was the way I joined pilot school, and it was a long journey.â&#x20AC;? A year later, Mbabazi began training with RwandAir in Miami and her exploration of the aviation world began. â&#x20AC;&#x153;My greatest memories are flying to different cities,â&#x20AC;? she says. â&#x20AC;&#x153;Being in the sky gives you a whole other view â&#x20AC;&#x201D; you get to see what they call a birdâ&#x20AC;&#x2122;s eye view of everything.â&#x20AC;? Sexism in the skies? Now, the young pilot has become a pioneer in a male-dominated industry in Rwanda, and yet she knows she is con-

Esther Mbabazi. PHOTOS:http:// africancelebs.com/

stantly being closely watched because of her gender. â&#x20AC;&#x153;No one ever says, â&#x20AC;&#x2DC;Oh itâ&#x20AC;&#x2122;s a male crew aircraft that crashed,â&#x20AC;&#x2122; even though itâ&#x20AC;&#x2122;s been many of the sort,â&#x20AC;? she says. â&#x20AC;&#x153;But you know, if thereâ&#x20AC;&#x2122;s a woman on board and something happens, you know, definitely youâ&#x20AC;&#x2122;re going to be mentioned.â&#x20AC;? Mbabazi recalls a previous incident where a passenger realised that the pilot for his flight was a woman shortly after arriving at the gate and refused to get on the flight. â&#x20AC;&#x153;The cabin crew said weâ&#x20AC;&#x2122;ll gladly leave you behind. Youâ&#x20AC;&#x2122;ve already paid the ticket, so if your reason is that basic and shallow, itâ&#x20AC;&#x2122;s not because of safety reasons. Itâ&#x20AC;&#x2122;s just because you donâ&#x20AC;&#x2122;t want to fly with a woman, weâ&#x20AC;&#x2122;ll gladly leave you behind.â&#x20AC;? Mbabazi refuses to let her critics win and is determined to continue being a role model for others. She hopes that her achievements can provide inspiration to other women who might not think they can attain their dreams jobs. â&#x20AC;&#x153;Time has changed,â&#x20AC;? she says. â&#x20AC;&#x153;Women are out there working, technology has changed, and everyone has the brains to do something, now itâ&#x20AC;&#x2122;s not about how much bicep or how much energy you have.â&#x20AC;? Source: www.risingstar.org

New Knowledge

Charting your childâ&#x20AC;&#x2122;s education: Why it matters When parents are choosing between a private or public school, they are making a fundamental decision that may significantly influence the future of their children BY JACQUELINE KUBANIA

t is arguably a universal agreement that knowledge or education is essential to success in life. But this agreement stops as soon as the big monster that is education is poked. The question of what constitutes quality education has for ages been a divisive one. Many parents find themselves at the precarious position of having to determine the future of their children by choosing how and where to educate them. A recent report by a regional education advocacy organisation has revealed that the apparent progress in the quality of education in East Africa could be a mere mirage. The report by Twaweza, titled Are our children learning? Literacy and numeracy across East Africa, re-

July 2015 Management Magazine

veals that many East African children are not learning the basic literacy skills. More precisely, only two out of every 10 pupils can read and do basic Standard Two level mathematics. This means that majority of pupils that will sit for their Kenya Certificate of Primary Education (KCPE) examinations this year cannot even pass a Standard Two reading and arithmetic test. Such numbers bring little comfort to parents making decisions about their childrenâ&#x20AC;&#x2122;s education, and the first question that surfaces from this report is whether these figures are restricted to very particular contexts. Is the quality of education in Kenya and the region doomed? Is this only a problem restricted to very particular education systems and methods of teaching? What options do parents have? Which way to go? In Kenya, the most common system of education is the 8-4-4 (coined from the eight years children spend in primary school, followed by four years in high

New Knowledge school and four more years in tertiary level). This is the national education system, implemented in all public schools 30 years ago. When parents are deciding between taking their child to a private school or public school, they are making a fundamental decision that may significantly influence the future of their children. It is not simply the environment in which children will learn, the number of years a child will spend in school or the amount of money parents will spend are also factors. Many private schools also teach the 8-4-4 state curriculum, but a minority follows other systems that are not as popular. The British General Certificate of Education (GCE) is the second most common system in the country. Other systems that are applied in Kenya but are less popular include the Accelerated Christian Education (ACE) and the International Baccalaureate (IB) system. The choice between these systems often trickles down to the affordability of the schools that offer them, but the intrinsic differences between these systems are significant. “When Kenya transitioned from the colonial GCE system to the more theory-intensive 8-4-4, the decision was to be experimental,” says Dr. Okumu Bigambo, W. (Ph.D.), a Senior Lecturer and Chairman of the Department of Communication Studies at Moi University. “But then it ended up being implemented by force and many things were overlooked in the way the curriculum was prepared and executed. 8-4-4, at best, is designed to produce automatons who simply churn out information that is memorized.” Bigambo argues that 8-4-4 is designed to produce people who are best suited to excel in an industrial society. “But times are changing, and we are in the middle of a technological evolution where independent thinking is encouraged and prized. This is why it is difficult to find anyone speaking favourably of 8-4-4. It is not that the system is bad or doesn’t work, it is just that it is outdated.” The next best choice for parents in Kenya, says Bigambo, is the British GCE which remains popular in many commonwealth countries and former British colonies. In the GCE system, he explains, the subjects are taught with more emphasis being on the work being done by the student. Teachers act more as guides rather than mere channels of pre-packaged set of facts. John Mugo, the Country Coordinator of Uwezo Kenya, cites the amount of content in 8-4-4 as the system’s main undoing. Children are forced to take in too much information within a very short time and they end up mentally “bloated”, he argues. Mugo has dabbled in more than three education systems in Kenya both as a parent and an expert in Educa-

When parents are deciding between taking their child to a private school or public school, they are making a fundamental decision that may significantly influence the future of their children. tion. In fact, report mentioned earlier on literacy levels in the region was prepared under his programme at Uwezo. “I took my kids to an IB system school because the approach to learning is more dynamic and dialogical. The children are taught to interact with the information they are receiving and thus they can use it in contexts that are different from the ones they learnt in,” he adds. The IB system was introduced in the late 1960s in Geneva, Switzerland to cater for the growing numbers of internationally mobile students who wanted an education that was not tied to any national government’s agenda. France has been one of the front-row implementers of this system. Mugo heaps a lot of praises on the system and its approach to learning, but he, too, had to transfer his child to a GCE school owing to the unpopularity of IB in Kenya. “I remember my son went for a class one interview in an 8-4-4 after being in an IB kindergarten. He failed the intake test because the interview involved spelling specific words that he was not familiar with. So I settled for an IGCSE school also because of their wholesome approach to education,” he says. July 2015 Management Magazine

New Knowledge

Holistic learning and development Erick Mukiira, head of Drama department at the Aga Khan (Senior) Academy exemplifies a trait that many who heap praises on the GCE system tend to highlight – the focus on children’s gifts and talents. This, Mukiira says, ties to one common question that parents ask about when inquiring about the different art programs at his school – will my child grow in confidence and autonomy in this school? “The main focus with the different arts programs here is not for children to be very good actors or painters or singers, it is to grow their confidence,” Mukiira offers an explanation behind this common enquiry. “Some people are naturally gifted while other are not, and all in different areas. But things like confidence and ability to express yourself in the world can be nurtured. Parents want children who are confident and successful in terms of character. Intellectual academics cannot achieve this. But art and drama can do it.” You will also notice a big difference between students who have transferred in from 8-4-4 system and those who grew up in the IGCE system. This difference is often not academic but in the area of creativity. The IGCE children are more able to think out of the box and find alternative approaches to problem solving. But the 8-4-4 ones stick to the script and are less creative.” Most of the chips seem to fall upon GCE as the preferred conduit for quality education in Kenya. But the reality continues to be that most parents enrol their children in public schools offering the 8-4-4 system as GCE programs are beyond their financial reach. 54

July 2015 Management Magazine

Kenya’s free primary education also effectively ensures that the children are grounded in a far lessthan-ideal approach to learning, and many struggle to adjust if they pursue higher education in a GCE system. A final approach that could be easy on the pocket is homeschooling. But, as Bigambo sadly notes, few parents have the time to educate their children when they have to worry about what to feed them. “If I had the power, I would have all parents homeschool their children or get someone to home-school them. I believe this is the best approach to getting a high quality education to our children. “This is something that a school system that emphasizes mass education does not sufficiently cater for. In many institutions, talents are relegated to the periphery of a child’s development. They are something a child does in his spare time and for fun, they are not a central part of their lives. But with homeschooling, since the number of students is narrowed down, there is room to notice, focus on, and develop the talents. “But this is only from an ideological point of view. The reality is more challenging. As an approach, homeschooling is comprehensive because a child is not just given intellectual knowledge but values are instilled into them in a context that is safe. In Kenya, especially in public schools, children have learnt to see the school as an inconvenience that they have to persevere through. They do not view education as part of the larger scope of life. But with homeschooling, education comes as a part of life and a necessary step to becoming a wholesome person,” concludes Bigambo. Email: jacquelinekubania@gmail.com

Enabling Futures, Impacting Progress.

S INTAKE Y, MAY, JANUAR ER B SEPTEM

ACADEMIC PROGRAMMES Undergraduate Programmes 1. Bachelor of Commerce (B.Com) 2. Bachelor of Management and Leadership (BML) 3. Bachelor of Arts in Development Studies (BDS)

Postgraduate Programmes 1. Master of Business Administration (MBA) 2. Master of Management and Leadership (MML)

Executive Masters Programmes 1. Executive Masters of Business Administration (EMBA) 2. Executive Master of Science in Applied Management & Leadership (EMSc-AML)

Professional Courses ACCA:

CPA/CPS: CILT: ICDL: FRENCH:

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Executive Capacity Development Programmes (ECDP) MUA Directorate of Executive Capacity Development Programmes (ECDP) designs and develops capacity building and enhancing programmes for organizations and individuals. It undertakes business process re-engineering for organizations to make them more competitive in the dynamic environment.

New PhD Programme Doctor of Philosophy in Management and Leadership Philosophy of the Programme The Doctor of Philosophy in management and Leadership is an interdisciplinary programme designed for those who intend to advance to more complex leadership positions in both industry and academia.

Target Groups The Doctor of Philosophy degree programme in Management and Leadership targets masterâ&#x20AC;&#x2122;s degree holders or its equivalent and PhD holders in Management, Leadership, Business, Administration or any other relevant business disciplines.

Minimum Entry Requirements Holder of any other relevant mastersâ&#x20AC;&#x2122; degree in DQ\ RWKHU UHOHYDQW Ă&#x20AC;HOG SURYLGHG PHDVXUHV ZLOO EH WDNHQ RU KDYH EHHQ WDNHQ WR UHGUHVV GHĂ&#x20AC;FLHQFLHV in business and/or management and leadership education.

Programme Duration The Doctor of Philosophy in Management and Leadership degree programme shall be offered in three (3) academic years. A student must complete the doctorate degree within a minimum of three (3) years or a maximum of seven (7) years.

)RU PRUH LQIRUPDWLRQ RQ WKH SURJUDPPHV ZH RIIHU FRQWDFW RXU RIĂ&#x20AC;FH RQ Tel: 020 2361160/1, Mobile: 0706 035299 / 0722 224193 or 0705 161 693 Email: admissions@mua.ac.ke or info@mua.ac.ke, or registrar.asa@mua.ac.ke

Hands-on Management

Why embedding coaching in your organisation works for you Coaching challenges people to see new perspectives that inspire them to change their behaviours and actions, thereby maximising their performance

BY EILEEN LASKAR

nternational Coach Federation (ICF), the largest coaching regulatory body in the world defines coaching as “partnering with coachees in a thoughtprovoking and creative process that inspires them to maximize their personal and professional potential.” Three key things are worth noting; Coaching is a professional relationship (it’s a partnership), the process of coaching is both challenging and inspirational and there are expected results (maximization of both personal and professional potential). Coaching challenges people to see new perspectives that inspire them to change their behaviours and actions, thereby maximising their performance. Within the workplace context, coaching can be defined as “a deliberate process through which a coach challenges the coachee (employee) to figure out the best way to get certain results that are important to the coachee and the organisation they work for.”At the heart of coaching is a belief that employees have ideas and ways through which the desired results can be achieved and employees who are guided and positively challenged in a safe and secure environment have the courage and confidence to engage themselves fully, generate the

July 2015 Management Magazine

best solutions, and take the necessary action. Benefits of embedding coaching at the workplace Positive high performance culture – There are many managers who deliver great results yet most people working under them are unhappy and demotivated. With the coaching approach, unprecedented results are delivered by engaged, motivated and inspired employees who keep on outdoing themselves. Talent Retention – When people are guided to explore their full potential, they find meaning and intrinsic motivation to do what they do every day at the workplace and as a result gain a sense of belonging that is beyond the contractual obligation. Employees are more loyal and motivated when their bosses take time to help them improve their skills and this is critical especially in the current era when good talent is fluid and costly. Innovation and Competitiveness – At the heart of coaching is exploration. Employees are encouraged to research or determine the best ways to deliver results. These small, continuous explora-

tions cumulatively ignite innovation that is important for organizations to remain competitive. Steady Leadership Pipeline – Coaching is instrumental in identifying and developing leadership for today and for the future. Managers and team leaders who coach are able to identify leadership potential in others and delegate more and in the process use their now freed time to stretch their strategic thinking capacity and over time move up to more senior and strategic roles with a broader scope of influence within the organisation. Decentralisation of the HR Role – Embedding coaching in an organisation makes it possible to decentralise the HR roles to the line managers. Cost-effective people development – In the long run, coaching costs less than formal training. More often than not, employees already have the technical skills they need to deliver on the job and as such, coaching is the “software” they

Hands-on Management need to maximise the already inbuilt hardware functionalities they have. Effective Change Management – In today’s volatile and complex business environment, organisations are always undergoing some form of change. A coaching culture reduces both anxiety and resistance because the employees are in sync with the change leaders. Benefits to Team Leaders Inspire teams to pursue the organisation’s vision with zeal – With closer relations and constant positive communication, managers are able to cascade the organisation’s vision to get inspired commitment from their teams. Enhanced communication and relationships – Managers who are coaches are genuinely interested in the growth and welfare of their employees which generates a connection and trust level resulting in a solid

relationship. This enhances employee motivation, engagement, performance and loyalty. Strengthen employees’ skills-This increases employee engagement and strengthens team commitment, which are foundational for development of a high performance culture. Benefits to the Employees Greater clarity in roles and objectives– Coaching creates a relational proximity between the leaders and the followers, making it easier for employees to ask questions and seek clarification without fear and intimidation. Greater ownership, commitment and responsibility – When individuals are given an opportunity to generate own ideas and solutions, they are committed to follow through to completion. Improved confidence and independence – a coach believes in the coachee’s capacity and potential. Coachees are given room to explore, make choices and execute actions. When a coachee’s ideas work and they get the desired results, their confidence, self-belief and independence is multiplied. Improvement in individuals’

Few people are equipped with coaching skills or have experienced professional coaching in their lives. Without any structured or formal training and exposure, it would then be very difficult to champion and embrace coaching at the workplace.

performance/targets/goals – This is the highest and most obvious result. Employee self-awareness – Through thought provoking conversations, employees gain awareness especially regarding their values and beliefs which inform the actions and decisions that they make. Motivation and satisfaction – The individual feels supported and encouraged by their manager and the company. Employee growth – Pride, joy and fulfilment comes with progressive surmounting of new challenges and opening up of new opportunities. Few organizations have embedded workplace coaching because of a). Misconception of what coaching is - coaching is one of the subjects that people take casually and also assume that they know what it means and how it’s done. What most people are doing is mentoring, instructing and consulting - and dubbing it coaching. b). Lack of knowledge and capacity to coach - Few people are equipped with coaching skills or have experienced professional coaching in their lives. Without any structured or formal training and exposure, it would then be very difficult to champion and embrace coaching at the workplace. There is still very limited information on what to look for when engaging a coach or the criteria to use. As a result, some organisations have had the best intentions but engaged the wrong coaches who are not trained or credentialed. These companies have invested many resources and not achieved their goal. The good news is that in Kenya, a chapter of the International Coach Federation (ICF) has been launched and this will go a long way in helping organisations vet the individual they engage as coaches. Additionally, with emergence of coaching schools that are accredited by ICF, there will be more access to qualified coaches who can help train and embed professional coaching in organisations. Email: Eileen.laskar@cdi-africa.com July 2015 Management Magazine

Hands-on Management

2015 resolutions: How much have you achieved? The temptation to toss away goals which have fallen by the way side is real, but the second half of the year presents hope that these aspirations can be achieved

BY MERCY ANDARO

he year 2015 is now half-way gone and as businesses post their mid-year results, it is also important as individuals to take stock of our lives. As Socrates the Greek Philosopher said ‘the unexamined life is not worth living.’ Most of us begun the year with enthusiasm and resolve to make the year count. However, as the year progresses a myriad of things are competing against our goals. A research conducted by University of Scranton, Journal of Clinical psychology shows that only eight per cent of those who make New Year resolutions accomplish them and only 46 per cent of resolutions made at the beginning of the year are maintained past six months. But why is this so? Aren’t our good intentions enough to enable us achieve the things we had identified as priorities for

July 2015 Management Magazine

this year? In the late 1940’s, Dr. Joseph Duran, a Quality Management pioneer borrowing from the findings of the Italian economist Vilfredo Pareto in 1906 coined the ‘Pareto principle’ also known as the principle of the ‘vital few and the trivial many’ or the ’80-20 rule’. Juran fronted that in any given set of things, only 20 per cent of the set contributed to 80 per cent of the desired result. The power of focus can be likened to the sun rays which warm the entire world but when focused through a magnifying glass can start a fire. If we are to recover the rest of 2015, we should be able to identify the vital 20 per cent that we should focus our efforts on to get the 80 per cent result that we desire in our careers, businesses, relationships, finances or even health. By focusing on the vital few, we will reap the greatest productivity for the use of

Hands-on Management our time, effort and even monetary investment. What were your resolutions and ambitions for 2015? Do you have them in front of you or are they gathering dust, relegated to the back burner of your mind as you deal with the more urgent ‘everyday’ issues? Rather than give up, I encourage you to go back to your 2015 list of resolutions, and re-focus by pondering the following questions: What do I still want to achieve by the end of 2015? This will help you crystallise whether or not your ambitions are still valid and worth pursuing. Should it be apparent that you need to reset you priorities, it is time to set new goals, after all there is no ‘cast in stone’ rule that goals can only be set at the beginning of the year. Use the “80-20” rule to decide which top five goals will create the greatest positive impact on whatever area you have chosen to focus on for the rest of 2015. Write down your top five goals. A Harvard study conducted in 1979 and run for 10 years showed that students who had clear, written goals were ten years later earning ten times more than their counterparts who either had no goals or unwritten goals. How will I know that I have succeeded in achieving my goals? It is important to always start with the end in mind and to have measurable indicators of success right from the beginning. Success can be measured quantitatively or qualitatively depending on the nature of what you want to achieve. How will my life change if I am able to achieve my desired goals? Are you able to visualise the benefit of achieving your goals? Who in your life will be impacted and what will you have acquired, improved or gained (except if your goal was to lose weight) by the end of 2015? Answering this question will help you encapsulate your motivation for wanting to achieve your goal. A captivating goal is what will supply the fuel needed to turn your ambition into the actions that will lead to achievement of your goal. Where I’m I today in relation to where I want to be by end of 2015? It is important to take stock of one’s current state in relation to their desired goals as this reality informs the steps one needs to take in order to achieve desired outcomes. This may also provide the needed push towards achieving your dream. What do I need to resolve or address in order to ensure I achieve my desired goals?

This will help you identify any barriers or obstacles that stand on your way to success. Perhaps procrastination or lack of focus has been what has kept you from achieving your dream. The first step towards finding a solution is to identify the hurdles that are standing on your way. What steps can I make to take me towards my desired goals? What are you willing to do to achieve your dreams? Pablo Picasso said ‘Action is the foundational key to success.’ Achievement of your goals is like a journey and you should design steps that take you in the direction of your dreams. A good way to create actions is to first list down all possible steps that can take you towards your goal. Next using the ’80-20 rule’ to prioritise the ones you feel will move you faster or closer and the ones you know that you are willing to commit to. Then reality-check your designed actions and ensure they are Specific, Measurable, Actionable, Relevant/Realistic and with a specific Time frame attached to them.

The year may be already half-way done but it’s not too late to get back on track with your dreams for 2015, make this year count. What support will I need to ensure I keep on track? Everyone needs a shot in the arm by way of encouragement and support. Identify people in your life who believe in you and care about your goals. This may be family, friends or even a coach. Many people fail at achieving their resolutions because what they want to achieve is only known to them. They have no one to support or keep them accountable. Professional coaching is an immense source of support. According to an International Coach Federation (ICF) Global Coaching Client Study conducted by PricewaterhouseCoopers on behalf of ICF, professional coaching provides fresh perspective on personal challenges, enhanced decision-making skills, great interpersonal effectiveness and confidence. According to the study those who had undergone coaching reported improvement in productivity, satisfaction with life and work and attainment of relevant goals. Like 19th Century, British Author, George Eliot said ‘It is never too late to be what you might have been’. The year may be already half-way done but it not too late to get back on track with your dreams for 2015,make this year count. Email: mercyandaro@britam.co.ke July 2015 Management Magazine

Money Matters

Kenyaâ&#x20AC;&#x2122;s takaful industry grows despite challenges Globally takaful contributions are estimated to reach USD15 billion in 2015, a15pc growth over the previous year By ALI MOHAMED

he Kenyan Takaful (Islamic insurance) industry continues to post strong growth, but the myriad of challenges it faces require the collective effort of all stakeholders â&#x20AC;&#x201C; the industry, the regulators and the community at large. Issues related to governance,

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July 2015 Management Magazine

policyholder rights and investment opportunities are among key challenges facing the industry. The Kenya takaful industry has continued to demonstrate a strong growth momentum, and is increasingly being recognised as one of the major components of the Islamic financial system. Today, as with other forms of Islamic finance, the industry has gained significant interest as a viable and efficient alternative model of insurance. Globally takaful contributions are estimated to reach USD15 billion in 2015, a significant growth of 15 per cent over the previous year. During the past three

Money Matters

years, the industry in Kenya has recorded an average growth rate of around 25 per cent per annum, indicating high growth potential in the years to come. Kenya Market In Kenya, takaful industry is one of the fastest growing segments of the overall insurance sector with players like CIC insurance tapping into this new niche market through Takaful Insurance of Africa (TIA). This growth is mainly due to the increasing demand for Shari’a-compliant insurance, increasing public awareness and the existence of enabling legislation promoting its development in Kenya. During the past three years, the industry has witnessed positive changes in the mix of takaful contributions, as family takaful business has gained ground. “This growth is mainly due to the increase in public awareness about the importance of long-term takaful products, as well as the change in the appetite of clients towards life products that are linked to investment.” Regulator Support As a regulator, the Insurance Regulatory Authority (IRA) believes in continual enhancement and improvement of its regulatory infrastructure for the growth and betterment of the industry. The IRA has played an important role in launching new initiatives to develop the insurance industry, both locally and regionally. The IRA should launch new solvency requirements for takaful to reaffirm that Kenya is the jurisdiction of choice for takaful and takaful companies. As you may be aware, the main objectives of modifying the existing Insurance rules is to facilitate faster growth of takaful business in Kenya, while protecting the interests of all stakeholders, vis-à-vis participants, shareholders and takaful operators. It is also expected that changes to the model will attract new entrants to the market and foster competition for the betterment of consumers. So far, we have only seen one takaful entity being licensed by the IRA. Taking into consideration the significant growth of takaful industry locally and regionally, there are several factors that contribute to such growth. These include the remarkable growth of Islamic banking industry in the East African region and other parts of the world which support the setting up of takaful companies to complement banking services. Furthermore, the low penetration of insurance in the Islamic world makes it possible for significant growth of takaful, especially in the East African region.

Challenges Ahead There are several challenges facing the takaful industry in Kenya that need to be properly addressed in order to further enhance the long term profitability and the soundness of the industry. First is the corporate governance issue regarding policyholder rights. Compared to policyholders in a conventional mutual insurance company, who are the owners of the company and have the right to remove the management, takaful policyholders have no such governance structures or rights, although in principle they are exposed to similar insurance risks. In fact, takaful policyholders seem to have no more governance rights than the policyholders of a conventional proprietary insurer, and must rely on market competition to get a fair deal and good value for money in their dealings with the takaful operator.

This growth is mainly due to the increase in public awareness about the importance of long-term takaful products, as well as the change in the appetite of clients towards life products that are linked to investment.” The second challenge is the standardisation of takaful accounting standards and disclosure, especially those related to capital adequacy and solvency, disclosure of Qard Hassan (interest free loan from the shareholders) and regulatory framework. The third challenge is the lack of human talent with the necessary exposure and experience in takaful business, as well as those with knowledge of Shari’a. One of the most critical challenges facing the Kenyan takaful industry is the issue related to the limited availability of Islamic investments instruments like sukuk, or other Islamic products which are suitable for investment by takaful companies. Another challenge is the ability to find the appropriate distribution channels to offer takaful products and services, as well as the appropriate promotion mix for such products. In conclusion, the future prospects of Kenyan takaful industry will hugely depend on the combined efforts of all relevant parties; the regulators, market players and the community at large, to chart the strategic direction for the industry. Collective effort is critical in order to maximise the potential of the Kenyan takaful industry. Email: alidutch3@gmail.com

July 2015 Management Magazine

Entrepreneur

A jewellery

shop on wheels Can two youthful entrepreneurs transform the global jewellery industry? Makena Kinyua, 23 years old and a Mathematic student at University of Nairobi together with Kanana Kinyua, a 25-year old student of International Business Administration at United States International University, believe they are on a mission to make a difference through their company, Jewelville, a jewellery business. They shared their story with SAMMI NDERITU.

ow did you conceive and actualise your metallic jewellery idea? We always had a desire to start a business. As we thought of what business we should start, a close relative posed an idea of selling jewellery. She gave us different kinds of ornaments and challenged us to find new ways of selling them. We loved the experience and decided to pursue the business. We loved the idea of combining different colours; wood and metal materials to make eye catching jewellery. We also wanted to provide good quality jewellery at affordable prices. Our aim was to change the misconception that good quality Jewellery needs to be expensive. I mean who doesnâ&#x20AC;&#x2122;t like a bargain? In actualising the idea, we first proposed it to a few family members and friends to see if the idea was viable. We got a lot of support from them and that motivated us to run with the idea. We knew the online market was our best bet, so we set up a Facebook page to showcase our jewellery. What was your mission at the onset? From the onset, our mission was to finally make our dream of running and owning a successful business a reality.

July 2015 Management Magazine

We wanted to run a family owned business that our children could grow up with and derive useful life skills. We could also pass on the skills to other people, present a different avenue for people to grow their passion and talent by opening craft schools and foundations. Who is your target market and how do you differentiate and stand out from the rest? Our main target is women. We advertise ourselves in various social media platforms, online shopping sites and by word of mouth. We provide a service that makes jewellery available to people at affordable prices and at their own convenience. We try to be an alternative to mainstream Jewellery sellers. We are

Entrepreneur

to a client. If the place is not safe, we opt not to go at all since our safety is not guaranteed.

We try to be an alternative to mainstream Jewellery sellers. We bring the jewellery to clients and present them with options to pick at their doorstep. We are a jewellery shop on wheels.” a jewellery shop on wheels because we deliver jewellery to clients’ doorsteps. We understand that clients might lack time to shop for jewellery, so we bridge the gap and make it convenient for them. Describe your best customer experience moments. When we made our first delivery to a client. We were a bit nervous because we didn’t know what to expect. We had never done this before and the thought of meeting a total stranger was very scary. Fortunately, it turned out to be one of the best experiences. She loved our products and we ended up talking for an hour about our business. She bought more products than we anticipate and became a loyal customer to our products. Have you ever dealt with an angry customer? What happened and

what did you do to correct the situation? Our business thrives on delivery of items for clients. One day, we made a delivery to a stay-at-home mother. Everything went smooth until we realised we did not have a bag to put the products. She scolded me for having poor after sales service. She also tried to use that opportunity to lower the price. We calmly apologised to her. Have you ever turned down a client? Several times when terms were not favourable. One such situation occurred when some clients wanted to take products on credit. One wanted to show a friend then bring them back. We couldn’t trust the individual so we declined. Another wanted to pay an amount that did not make business sense to us. We also have to assess the location for delivery before we commit

What challenges have you experienced along your journey? Like all businesses, there are good and bad seasons. We have had to face times of no sales. Initially when the business started, understanding the needs of the clients and how to reach new ones posed a challenge. Besides, we did not have quality photographs of our products for use in our online marketing. In dealing with the challenges, we decided to research and understand our market. We also picked lessons from people around us , especially those in the marketing profession on how they sell their product. In a bid to take the business to the next level, we made a deliberate effort to understand how consumers spend their money. On photography, one of our friends who has a keen interest in this profession offered to take pictures of our products as part of his personal project. Through this, we were able to get quality photographs. What are your future plans and what steps are you taking to actualise them? One of the major plans is to supply other jewellery stores with our own creations, partner with local artisans and market their jewellery products. Furthermore, we have a vision of making a world class online jewellery store with an African twist. To actualise these plans, we are constantly networking and consistently learning how to grow and build our business. One of the key activities that we will always engage in is research on necessary skills that would be of help in the business. Email: snderitu@kim.ac.ke

July 2015 Management Magazine

Smart Solutions

How being technology ¶Á XHQW· VDYHV your time When most people are working on their computers, it is easier for them to use the mouse because of the convenience that comes with using the gadget By KERUSHAN GOVENDER

o you ever feel that way too much time is expended in front of your PC? Even though there are many “off PC” things that need your attention, you cannot help but remain glued to that plastic monitor as the clock on the bottom of your screen reveals precious hours disappearing – never to be seen again! An infographic by American Express Open Forum states that “an average person loses two seconds per minute of work” just by switching back and forth between a mouse and keyboard. While this doesn’t seem like much, this adds up to one full year across the span of a career. Go ahead and estimate how much you will likely earn in your last working year of your career. Got that? Well, that’s the cash equivalent of what you’re losing when you’re heavily mouse dependent! The reality is that a warp speed world requires warp speed executives. Those of us who discovered the joy of personal computing later in life are in fact today working hand in hand with the younger generation who grew up interacting with technology. Spend a few hours with such a young executive and it quickly emerges how technology “fluent” these individuals are. Their interaction with technology is natural and fluid and they often demonstrate clever ways in which to productively engage with technology. No need to grow too sombre over this stark realisation. There are some quick and easy keyboard shortcuts that can very quickly be mastered to give you back valuable time each and every day. Taking into account the time the average executive spends in Microsoft Office, here’s a list of the top 10 shortcuts a speedy executive cannot do without: 1. Format a cell fast in Excel: Ctrl + 1 is the same as right-click and format

July 2015 Management Magazine

2. Move to the bottom of a table without all the stops in Excel: Ctrl + to get to the bottom cell 3. Concerned about spelling in Excel? Simply hit F7 to run a quick spell check 4. Quickly select a column in Excel: Shift + Ctrl + highlights a column until the last cell of a table 5. Avoid an unnecessary selection in Word: Simply double-click a word to select just the word 6. Precision select a block of text in Word: Select an entire paragraph in one go by triple-clicking inside the paragraph 7. Get screenshots into your Word document with ease: No need to leave Word looking for the Snipping tool. Simply hit Insert > Screenshot 8. Instantly create a new slide in PowerPoint: Ctrl + M gets you a new slide in a flash 9. Quickly start a presentation in PowerPoint: There’s no need to hover clumsily over your PowerPoint slides with a mouse pointer. Just hit F5 to get your slides going fast! 10. Get your slides going from the right spot in PowerPoint: Shift + F5 starts a presentation from the current slide, without the need to move back through slides in front of an audience. Another reality facing today’s busy executive is the growing masses of information that need to be confronted to enable sound decision making. Buckminster

Smart Solutions

Those of us who discovered the joy of personal computing later in life are in fact today working hand in hand with the younger generation who grew up interacting with technology Fuller, who created the “Knowledge Doubling Curve” noticed that until 1900, human knowledge doubled approximately every century. By the end of World War II knowledge was doubling every 25 years. Today, on average, human knowledge is doubling every 13 months! In this context of information overload, it is critically important for an executive to sift through heaps of data to find the few golden nuggets of meaningful insight. Here are some of my own good old, tried-ntested methods of getting through huge volumes of data, fast! 1. Spot trends fast: In most cases, it’s the trend that counts – not the heap of numbers. Transform an en-

tire column of data into a single cell using Sparklines (Select cells > Insert >Sparklines) 2. A picture is worth a thousand words: Instantly chart a mass of data by selecting the cells and hitting F11 3. See it coming: Tell the future fast with Linear Forecasting (Select chart > Layout> Trend Line > Linear Forecast) 4. Analysis at a glance: Get an instant view of what’s working and what’s not by selecting cells and hitting conditional formatting 5. Don’t look at more than you need to: Siphon required information from a pivot table speedily by using Slicer (Insert > Slicer) Executives need to keep developing core competencies. There perhaps has never been an era in mankind’s history where it has been so essential for an individual to keep improving himself. In this era of information “over-growth”, speed is the most valuable commodity that an executive can bring to an organisation. In the spirit of self-improvement and personal enhancement, I am sharing these tips with you. I hope you make the best of them. Email: kg@truth-projects.com July 2015 Management Magazine

Technology

Is Kenya the tech-hub of Africa?

Kenya’s ICT sector is increasingly becoming a major driver of the country’s economic growth. Numerous technological solutions have been developed within the country and they are solving problems in Africa too. By KEN MACHARIA

aving pioneered mobile money solutions like M-Pesa and crowd-sourcing platform Ushahidi, Kenya’s innovative, resilient and global-looking tech community is working on the next big thing. It is no wonder Kenya’s Information Communication Technology (ICT) sector has been the most consistent and one of the key drivers of Kenya’s economic growth in the last decade, contributing 12.1 per cent to the GDP in 2014. It is about time Kenya becomes a net exporter of technological innovation and ground breaking products. The tech innovations currently being created, tested and deployed are not

July 2015 Management Magazine

only benefitting Kenyans, but can be replicated in most African countries. These start-ups have the potential to scale to other emerging economies and have a strong business and social case. Kenya has the potential to be at the forefront of cutting edge innovation that brings about real change, creates employment and spurs other innovators to build in Africa for Africa. Here are five

start-ups that can quickly scale to the rest of the continent and beyond: M-KOPA Solar According to World Bank, 24 per cent of the population in Sub-Saharan Africa shares only 28 Gigawatts of installed power generation capacity, which can be compared to what Argentina consumes. Off-grid pay-as-you-go alternative

Technology nesburg and back, passing through eight countries and the device worked in the remotest parts of the journey. BRCK’s tag line is meant to warm the hearts of Kenyans, ‘If it works in Africa, it will work anywhere.’

power providers like M-KOPA Solar are the hope of millions cut off from the main grid. M-KOPA Solar, now in its third year, aims to provide affordable and clean energy to replace Kerosene lamps littered in 70 per cent of the homes across Africa. In a nutshell, M-KOPA Solar has created a solar system where users purchase 8W power by paying KSh50 per day through mobile money (plus deposit) after which the power system becomes free for use in 12 months. In May 2015, M-KOPA Solar announced it had connected the 200,000th home in Kenya, Uganda and Tanzania and with 500 solar units being installed in the three countries every day, M-KOPA Solar is well on its way of achieving its goal of connecting one million homes by the end of 2017. Sendy Most African countries are traffic-laden, unstructured and often chaotic, making delivery of goods a herculean task. Nairobi-based Sendy is your local DHL on two wheels that ensures you receive or send a package in a secure and timely way. Sendy, like ride-sharing app Uber, has created an app that connects independent (and vetted) motorbike riders with clients that need courier services. Clients can pay using mobile money or Visa in a three easy in-app process that includes; setting pick-up and dropoff locations, paying and tracking your delivery in real time. Users get a notification once their package is delivered. The young team running Sendy has set sight on facilitating 1,500 deliveries by the end of the

Kenya has the potential to be at the forefront of cutting edge innovation that brings about real change, creates employment and spurs other innovators to build in Africa for Africa year, and has plans for regional expansion. BRCK How do you provide internet to remote regions in Africa cut off from power, roads and telecommunication? This is the question the innovative Ushahidi team led by the ‘Africa father of tech hubs’ Erik Hersman sought to answer when they created BRCK. BRCK (pronounced Brick) is a made-in-Kenyaassembled-in-America device that provides internet by intuitively selecting between WiFi, Ethernet, 3G or 4G mobile phone networks, whichever works best at a particular time. BRCK has an 8-hour back-up battery that immediately kicks in once power is interrupted allowing as many as 20 users to connect to the internet through the device. While BRCK is essentially described as the ‘the backup generator of the Internet’, the rugged device has more utility value; charging other devices like mobile phones, 16GB of cloud storage, networking capability and a web platform that helps users check ideal internet connection and power output. To test BRCK is ideal for Africa, Hersman led a team that travelled by road from Nairobi to Johan-

Chura A start-up by former University of Nairobi students, incubated at the Chiromo based C4D Lab, is allowing mobile money users get additional services, over and above what telcos are providing. Chura – Frog in Swahili – gives users the ability to leap between mobile money services in different networks. Through the platform, customers can also exchange airtime for money across mobile networks, send airtime to someone in a different network and buy airtime or data using any of the mobile money services. The five co-founders that constitute Chura have been shortlisted as finalists in the 25,000£ (KSh3 million) Royal Academy of Engineering Innovation grand Prize. In addition, Chura has received requests to provide the services in Zambia, Nigeria and South Africa. M-Changa Kyai Mullei and David Mark have created a mobile fundraising solution that leverages on mobile money services, adding accountability and convenience to the ‘e-harambee’ process. In Kenya, and Africa in general, fundraising for various reasons like funeral, wedding, school fees or for medical bills is the norm rather than the exception. Through a mobile and an online platform, M-Changa helps users raise funds through M-Pesa, Airtel Money, PayPal, meaning anyone – even friends outside the country – can contribute to your fundraising. What sets M-Changa apart from traditional harambee methods is the seamless automation process that not only allows account holders to invite an unlimited number of contributors but also tracks donations. More than 10,000 people have used M-Changa, driven to the platform by M-Changa’s unique mix of integrating SMS and social media to reach and engage customers. Email:macharia.ken@gmail.com July 2015 Management Magazine

Business Etiquette

Online etiquette – avoid social media mishaps As a marketer, interact with audiences in a way that’s representative of your company brand’s voice.

s trending topics continue to explode on Facebook and Twitter, marketers are increasingly embracing real-time engagement to spread brand awareness and better connect with fans. But marketers often run the risk of saying too much. In recalling national tragedies like 9/11, for example, bigname brands have jumped on the opportunity to tweet out sentiments and offer special discounts, often leaving a bad taste in people’s mouths. In a world where communication is a click away, when is it appropriate to contribute to real-time conversation and when should brands remain silent? While the competition for companies to forge relationships with consumers is fierce, ultimately, a company’s brand is not a person and commenting on certain topics can be read as insincere. While the humans behind the account are empathetic, the brands on display don’t always resonate as such. As a marketer, interact with audiences in a way that is representative of your company brand’s voice. To ensure meaningful exchanges and avoid an engagement crisis, here are four questions to ask: 1. What’s the ultimate goal? Before jumping on the engagement bandwagon, evaluate what you hope to accomplish by posting. Are you simply using a hashtag to attempt humour or does the company’s brand have a significant tie to a timely event? Is there a particular sentiment you hope to drive by sharing or do you merely want to remind audiences that the company exists? Just because your company has a 68

July 2015 Management Magazine

social-media presence doesn’t mean it must join the conversation. If a tweet does not serve a greater business purpose, save your steam for a stronger fit. 2. Do you have something to say? Hot-topic hashtags can be a great gateway for brands to connect with fans. But have a full grasp of the context before jumping on board. Recurring hashtags like #throwbackthursday or #transformationtuesday are low-risk bets if they let a company show creativity without treading too far off-message. Not all hashtags are appropriate to adopt, however. Be wary of contributing to discussions tied to others’ misfortune. Organisations directly involved in the tragedy can authentically offer condolences. But if an unaffiliated company tries to make light of the event, it’s often perceived as disrespectful. 3. Is the message authentic to the brand’s voice? Ensure brand messages are not muddled. Stay on target with engagements that directly pertain to the company’s culture. When participating in real-time engagement, remember that timely commentary is meant to be a way for companies to forge stronger bonds with

fans, not steal the spotlight to advertise. Keep messaging on topic and refrain from attaching a coupon or trying to sell a product. Self-serving messages dilute a brand’s authenticity and run the risk of alienating fans. 4. Does the post add value to a consumer relationship? If a real-time occurrence has a potential for tragedy, keep a safe distance unless your message can add direct value to the conversation. If a hurricane is approaching, it seems right for the American Red Cross to chime in and provide safety tips. While it’s never wrong to think about changing the paradigm, don’t tap into a serious situation unless you are offering to help and the message is related to the company’s brand. If you do make a real-time engagement faux pas, act fast and apologize as soon the misstep becomes clear. The longer you wait to address the problem, the worse the situation becomes. Your best bet is to be honest and direct and then move forward. If your post results in offending followers, apologise and, if you delete the offending tweet, acknowledge that, too. Source: http://www.entrepreneur.com

What I Read

Work exposes me to more books Peter Mayavi is an engineer and has worked as a Construction Project Manager in different organisations. His taste for books spans across continents. He shares his eclectic reading interests By STELLA RIUNGA

ou are a lover of books. Who inspired you into reading? I became an avid reader during my high school days. We had a wonderful role model in the late Dr Geoffrey Griffin (the founder of Starehe Boys’ Centre) in high school. Griffin would sometimes read a book a day and he had read most of the books in the school library. Since I was both a librarian and an office boy, he inculcated in us a culture of reading. I remember reading classics like Crime and Punishment, Anna Karenina, Pride and Prejudice, Emma, and normal boys books like Hardy Boys. I also acquired a love for well-written comic books. Two years ago, I acquired the entire collection of Calvin and Hobbes by Bill Waterson. What kind of books do you love reading? I read anything that makes me turn the pages. Almost always, I will be reading a number of books at the same time. For instance, I have just completed Gideon’s Spies: The Secret History of the Mossad, which was a riveting treatise. I have been reading The Road Less Travelled by Scott Peck and I just got The Count of Monte Cristo by Alexandre Dumas, a classic that I never got round to reading. I greatly appreciate African works. My all time favourite is The Concubine by Elechi Amadi. I have read all of Achebe’s works and I found his autobiographical work, There Was A Country, quite an eye opener on the situation in modern Nigeria. A Man of the People also by Achebe cracks me up. It’s the 1984 of Africa. I have read Ngugi wa Thiong’o’s works. I remember his children’s book, Njamba Nene and the Flying Bus. We all read John Kiriamiti’s novels and were fascinated by Jack Zollo and Milly, and Son of Fate. Chimamanda Ngozi Adichie, author of Purple Hibiscus, Half of a Yellow Sun and Americanah is incredible. I also enjoy fictional works by modern writers. Anything by Frederick Forsyth and Jeffrey Archer is always welcome. I am currently awaiting the latest installment of The Clifton Chronicles by Jeffrey Archer. I have a smattering of other writers who would be too many to mention here.

How/where do you find the time to read, considering your schedule? I read in the evening, usually from 10pm to midnight. I am not big on TV and I find solace in books. I have been hit sometimes by an existential crisis when I have completed a book and don’t know what to read next. How does what you read affect your business or work? Or how does your work or business affect what you read? My work exposes me to other kinds of books, like business books and networking books which I wouldn’t pick out on my own. My work also affords me the opportunity to buy these marvellous reads, both on hard copy or Kindle. Tell us about the greatest moment you ever had as a result of reading a book? Gideon’s Spies opened my eyes to how international politics works. Nothing in international politics should be taken at face value. I also find The Road Less Travelled very profound and I wish I had read it sooner. E-books or hard copies, which do you prefer? Both. I find the Kindle/iPad very convenient when I am travelling. There are books which just feel better in hard copy-comic books for instance. Do you share books? As a rule, no. If I have a book and someone likes it and wants to read it, I usually buy it for them. Email: stellariunga@gmail.com

July 2015 Management Magazine

Health

Your b nes, your health There are over 200 bones in the human body. These bones give the body structure, but if injured and not treated, there can be a ripple effect on the body’s entire health. Dr. Timothy Kagoda Byakika gives more insights.

Lateral view of a degenerated knee. PHOTOS: Sammi Nderitu

back. Sleep in a bed with a firm mattress or a high density one. For the orthopaedic patients, an orthopaedic mattress is recommended so as to maintain a straight posture.

By POULINE LUMITI and SAMMI NDERITU

bout two years ago, John Blessings was involved in a car accident along Mombasa road. He sustained multiple fractures on his legs and arms. After surgery, he was confined to a hospital bed for a month and thereafter limited to using a wheelchair for another six months. Almost two years later, Blessings has regained the complete use of his two legs. Thanks to orthopaedic surgery, he no longer requires a wheelchair or clutches to move around. Orthopaedic is defined as the study and research of the musculoskeletal system (bones, joints, nerves, etc.). According to Dr. Timothy Byakika, an orthopaedic surgeon, orthopaedics was first intended to treat children who had crippling or debilitating diseases. This was later advanced to treat everyone with bone related conditions as a result of degenerative diseases, infections, tumours, accidents, sports injuries and congenital disorders. The growth of orthopaedic treatment has seen many patients in Kenya get a new lease of life. In his 30 years of medical practice, (20 years as general practitioner and 10 as an Orthopaedic surgeon), Byakika says there has been tremendous growth in the orthopaedic field. He attributes this to advanced trainings and the fact that increased cases in orthopaedic related conditions 70

July 2015 Management Magazine

Dr. Timothy Byakika, orthopaedic surgeon.

has led to an increase on the demand of specialist doctors. The most common conditions in Kenya that require orthopaedic treatment are back pains, fractures and bone degenerations. Back pains Byakika says that almost eight out of 10 people will suffer from back pains once in their life time. He notes that a majority of back pains are triggered by poor standing, sitting and sleeping postures. Some computer users tend to suffer back pains problems as a result of bending their shoulders downwards, which causes a strain on their shoulders and pain on the neck and upper back. Sleeping postures also contribute greatly to back pain conditions. This may be due to use of sagging beds i.e. spring beds and sagging mattresses. “If your job requires you to be seated for a long time, it is advisable that you use a seat that supports your back in an upright position or make use of special seats accessories that will support your back,” he explains. Furthermore, when using your computer, ensure that your back is raised to avoid straining your shoulders and

Fractures Fractures require specialised treatment. A bone fracture occurs when a force exerted against a bone is stronger than it can structurally withstand. The most common sites for bone fractures are the wrist, ankle and hip. In most cases, as Byakika observes, a greater percentage of bone fracture injuries in Kenya today are caused by road accidents, accidental falls, sports injuries and gun shots. “In treating joints, ligaments and bone dislocation, we make use of arthroscopy. This is a type of surgery that uses a technique called keyhole. It is most commonly used on the knees, ankles, shoulders, elbows, wrists and hips,” explains Byakika. Degenerating bones Although younger people mostly suffer fractured bones, it has been observed that elderly people, mostly from 55 years of age tend to suffer from degenerating bones, also known as Osteoarthritis. This condition involves bones wearing out. Osteoarthritis mostly affects cartilage, the hard but slippery tissue that covers the ends of bones where they meet to form a joint. Healthy cartilage allows bones to glide over one another and absorbs energy from the shock of physical movement.

Health

In osteoarthritis, the surface layer of cartilage breaks down and wears away. This allows bones under the cartilage to rub together, causing pain, swelling, and loss of motion of the joint. Over time, the joint may lose its normal shape. Also, small deposits of bone called osteophytes or bone spurs - may grow on the edges of the joint. Bits of bone or cartilage can break off and float inside the joint space. This causes more pain and damage. â&#x20AC;&#x153;Osteoarthritis is treated by joint replacement surgeries. Patients who have undergone a successful surgery get back to normal lifestyle. However, they are medically restricted to certain activities that may cause a strain on their joints,â&#x20AC;? he explains. Although osteoarthritis is more common in older people, younger people can develop it - usually as a result of a joint injury, a joint malformation, or a genetic defect in joint cartilage. Menopause women Another common bone condition with older people, specifically women, is osteoporosis. It is very common with post

menopause women and is characterised by a decrease in the density of bone, decreasing its strength and resulting in fragile bones. Osteoporosis leads to abnormally porous bone that is compressible, like a sponge. This disorder of the skeleton weakens the bone and results in frequent fractures (breaks) in the bones. Although common in women, it can also affect men over 70 years. Byakika says that osteoporosis is usually undiagnosed until when the injuries occur and the end results are usually fractures of the wrist, hip bones and spine. Patients with this condition are advised to avoid obesity, smoking, keep active by exercising, maintain a balanced diet and take calcium supplements as prescribed by a doctor. These measures can also serve as preventive measures. Recuperation period After any bone surgery, patients have a chance of getting back to their pre-condition or pre-injury state. The recuperation period is entirely dependent on the type of condition or injury. Byakika notes that the growth of

(Top) Frontal view of a degenerated knee and (Inset) Replaced degenerated knee. PHOTOS: Sammi Nderitu & Courtesy.

orthopaedic surgery in Kenya has made it possible for patients to receive treatment in the country. To avoid developing bone related conditions, there is need for individuals to be always aware of lifestyle situations that may result in back pains, fractures and bone degeneration. Email: plumiti@kim.ac.ke & snderitu@ kim.ac.ke July 2015 Management Magazine

Life Goofs

Great lessons from failed ventures It is always assumed that new jobs usually present exciting new opportunities. This is not always the case though By AMANI MWAVUO

n my last year of campus, I decided to start investing so that I could secure a better future for myself. Together with nine of my friends, we formed an investment group. None of us were working at the time, we were full-time students. Drawing from our personal savings and pocket money, we would save a total of KSh6,000 a month. After six months, we had saved KSh60,000 and we decided to put the money to use.

Onion farming We settled on onion farming, which was supposed to yield high returns and did not require too much capital. Our parents were really supportive. One of them gave us a piece of land in Ongata Rongai for free- we even got a worker thrown into the bargain, on condition that we would pay him a little extra. The project took off well, and we were

all excited. To save on labour costs, we decided to do the weeding and ground preparation ourselves. On the first day, most of us showed up at the shamba and got down to work. There were those who never showed up. That was the beginning of problems. First, we had not done enough research so we didnâ&#x20AC;&#x2122;t know that it was the wrong season for planting onions. Secondly, water was scarce. There was a river near the shamba but it was seasonal. When it dried up, we asked the farm worker to fetch water for us. We even gave him money but he rarely watered the plants. The few times he fetched water, the cost was way above what we had estimated Finally, the onions dried up. With none of our members available to supervise the project, the worker simply pocketed our money and did nothing. At the end of the day, having spent about KSh 35, 000 on the project and with no onions to show for all our hard work, we abandoned the project. There

were bitter feelings as we blamed each other for the projectâ&#x20AC;&#x2122;s failure. Wrong moves Looking back, I can admit there are several things we did wrong. Some of our members were not as committed as the rest of us and this led to the eventual failure of the project. Fortunately, however, we had a constitution as a group, so we were able to use that to penalise the members who had not pulled their weight in the project. We should also have done more research about onion farming, maybe talked to farmers who have been in the business for a while. We also learned that agriculture is a hands-on business- you cannot be a long-distance farmer! Itâ&#x20AC;&#x2122;s also very risky- you can lose everything in a flash. We moved on to other things because we were still determined to invest. We tried forex trading but got tired of holding on to currency until it increased in value, as it could take quite a while. In the end, we settled on a less risky investment- unit trust. Though the returns are quite low, they are, at least, consistent. There have been many bumps on the way but we keep pushing on, with the aim of becoming a limited liability investment company in two years. I am glad we started investing when we were still young and did not have so much to lose, because it has given us time to make mistakes and learn from them. I would say we are now older and much wiser. Email: management@kim.ac.ke

July 2015 Management Magazine

Executive Style

Discover the clever little gadgets The world is being run by gadgets and these portable items will make your life easier By DIANA KUBEBEA

Memo bottle The skinny rectangular bottle is designed to fit in your briefcase, laptop bag alongside your laptop or your bag alongside books and other documents. The memo bottle which resembles a piece of paper comes in letter size, A4 or A5.

Wireless flexible folding roll-up silicone rubber keyboard This High quality mini wireless keyboard is an amazing addition to any pc, desktop, laptop or note book. Attach the wireless adapter, pop in the batteries, and youâ&#x20AC;&#x2122;re ready to go. You can start typing and navigating from virtually anywhere.

The Lost Key Finder The wireless gadget which comes with two parts, a receiver which you can attach to your keys and a transmitter with buttons will come in handy for you. When you misplace your keys, all you have to do is press the buttons on the transmitter and the receiver will flash and beep. The LED umbrella This umbrella is perfect for the coming rainy nights. It makes you visible to on coming cars while walking and makes the nights a lot safer. Thanks to LED lights which you can easily activate to light your path.

WiFi bathroom scale The fantastic Wi-Fi bathroom scale measures your body weight in kilograms, pounds or stones and will even measure your body fat through biometric impedance analysis. It also keeps track of your progress as you either try to bulken up or lose weight through the Wi-Fi system that connects to the internet and records your weight data each time you weigh yourself.

The Ipad pocket projector This is the pocket-sized projector that connects directly to an iPad to instantly display enlarged views of photos, movies, and presentations. Smaller than a smartphone and weighing less than 5 oz., the device plugs into an iPad's 30-pin charging port, turning any space into a movie theatre without complicated setup or cables. Its 35-lumen LED produces 6" to 60" diagonal images from 8" to 78" away with a 4:3 aspect ratio. Email: dkubebea@kim.ac.ke July 2015 Management Magazine

Reviews

MUSIC

MOVIES Column: Reviews Movie: Mad Max Director: George Miller Genre: Action And Adventure Reviewed by: Jacqueline Kubania

ad Max, the newest instalment in George Miller’s Mad Max series, is utterly and

completely nuts. The name is a good pointer. It is a crazy, action packed nail biting two hours of intense action and violence that is sure to get the heart pumping. Although you might leave the theatre with a headache, as I did.

Album: Firebrand Artiste: Simphiwe Dana

Mad Max tells the story of two rebels who are fighting to restore order in a broken, futuristic

Reviewed by JACQUELINE KUBANIA

wasteland with few resources. One of the rebels is Max (played by Tom Hardy), a quiet man who is mourning the death of his wife and Furiosa (Charlize Theron), a woman warrior who is trying to journey back to the land of her childhood.

imphiwe Dana is no stranger to the

Max and Furiosa team up to fight against Joe, an evil dictatorial warlord who wants to

African music scene, debuting her

hoard the scarce food and water for himself, thus denying the people sustenance. What

first album in 2004. The South African

follows is mad and fantastical battles fought out in the wasteland where the crazier you

born

are, the higher your chances of survival.

singer

accomplished

musician and performer, as anybody

Hardy and Cheroze give a hearty and outstanding performance and make all the blood

who attended her concert during last

and gore worth it. Watch this film for important lessons on how underdogs can beat all

November’s Koroga Festival in Nairobi

odds to emerge on top, driven by sheer will and determination.

will attest. Her latest album, Firebrand, was released in November 2014 to wide acclaim and praise. It has been touted as possibly her best work yet, showcasing a singer confident in her skills and unafraid to reach for impossible notes, both low and high. It is a 14 track album, wellarranged and with quite a range of tempo and rhythm saving it from monotony. Like all her previous albums, Firebrand is smooth and soulful, offering a delicious mix of soul and jazz, as well as traces of traditional African sound. This album is aptly named, because Dana is indeed a firebrand, one of South Africa’s best musical exports. So good is she that she has been hailed as the “New Miriam Makeba.” She is big not only in Africa, but in Europe as well. It is sang predominantly in Xhosa so you may not be able to sing along. But if you enjoy soul music, this is definitely one album you should add to your collection Email: jacquelinekubania@gmail.com

Movie: Tomorrowland Director: Brad Bird Genre: Science Fiction Reviewed By: Jacqueline Kubania

his star studded film is a celebration of curiosity and optimism, and the

innate belief in oneself. It is heavy on spectacle and the fantastic, which will call out to your inner child, but is well balanced out by a wellthought out storyline that will appeal to the adult in you. In this film, a smart and curious teenager (Britt Robertson) teams up with a tired and

disillusioned

scientist

(George

Clooney) to explore an exciting new world

where

dinosaurs

exist

and

teleportation is real. Their journey turns into a race against time to save earth from imminent destruction by altering the course of events in the fantasy land. The Robertson-Clooney combination helps to keep you interested in a movie that could be criticized for being a bit unoriginal and a little too long at 2 hours and 30 minutes. Take your kids with you when you go to watch this movie. Their childlike wonder at the special effects will most certainly be infectious and make the movie more entertaining for you

July 2015 Management Magazine

Email: jacquelinekubania@gmail.com

Reviews

Picking development at the expense of democracy

BOOK REVIEW

By ERIC KATHENYA

do not believe that democracy necessarily leads to development. I believe what a country needs to develop is discipline more than democracy. A

developing country faced with disorder and underdevelopment needs a strong, honest government. Philippines has an American-style constitution where gridlock on every major issue is a way of life. I do not believe that Korea, Taiwan, Hong Kong, or Singapore could have succeeded if they had to work under such a constitution. Those are the words of Lee Kuan Yew, the founding father of Singapore and the poster child of what has come to be called benevolent dictatorship. The world bid farewell to Lee in March 2015. He was 92 years old. He is credited with transforming Singapore from a third world country with a per capita income of USD400 to more than USD50,000 in one generation.

Title: Lee Kuan Yew – The Grand Master’s

world politics. They range from Islamic terrorism to the future of China. Lee was

Author: Interviews and Selections by

and I bet that forth rightness served Singapore well.

Graham Wilson and Robert D. Blackwill, with Ali Wayne

Publisher: Belfer Center Studies in

known for his political incorrectness which is evident in this book. He spoke his mind A day is a long time in politics. This book was published before Russia invaded Ukraine and the Islamic state became a force to reckon with. The fact that Lee’s views do not remotely suggest that these issues could emerge dents his geo-

International Security

political credentials.

Year: 2013

WEB REVIEW

The book contains a collection of his thoughts on the big issues of the day in

insights on China, the United States, and the World.

Email: ekathenya@gmail.com

Kenya laws are only a click away By Eric Kathenya

o you want to access all laws passed by parliament? A copy of

the proceedings of parliament or laws passed by all county governments? Or know the cases coming up in the Supreme Court, Court of Appeal, High Court, and the Chief Magistrates’ Courts? Do you want a soft copy of the latest issue of the Kenya gazette? Visit the National Council for Law Reporting website: http://kenyalaw.org.

Hansard which can be read but cannot

resource. It is not clear whether some

the

be downloaded. The last entry was

sections are updated after a given

Judiciary, the council’s core mandate

made in 2012. To be fair, it is labelled as

period but whatever the case, the

is to record rulings made by judges so

an archive and it is aptly described thus:

website would be awesome if all its

that other judges can refer to them

The official records of the proceedings

sections were updated. For example,

in future. The council has expanded

of the Legislative Council of the Colony

by time of review, the 2015 Court of

legal

and Protectorate of Kenya, the House

Appeal calendar was unavailable.

technology.

of Representatives of the Government

Also, the bills listed in both senate and

These include bills to be tabled in

of Kenya and the National Assembly of

the national assembly are up to March

parliament.

the Republic of Kenya!

2015.

state

make

documents,

corporation

available thanks

under

many

The website also has parliament’s

Overall, the website is a great

Email: ekathenya@gmail.com July 2015 Management Magazine

Travel

What to do on Zanzibar The distinctive architecture and the elaborately decorated doorways adorning the ancient buildings make a tour through Stone Town seem like time travel into the annals of history. Stone Town is the older part of Zanzibar City. Its former slave market contains dank, poorly lit cells; a stark reminder of the brutality that the trade brought to the island and to Africa. The narrow streets provide shelter from the overhead sun as you meander through the myriad markets, shops and restaurants along cobbled streets worn by countless footsteps. Forodhani Park on the boundary of Stone Town is transformed into an incredible food market in the evenings. It is the best place in town to try the local cuisine. Zanzibar has an abundance of sea life in its waters and having a meal in the market is a great way to try some of the fresh local produce prepared the traditional way and whilst interacting with the island’s inhabitants. Zanzibar’s spice tours are an opportunity to learn how the locals create so much flavour in their food. Strolling through the various plantations you can identify the distinctive aromas of cloves, cinnamon, cardamom and lemongrass clinging on the tepid breeze. Similarly, jack-fruit, pineapple and

The distinctive architecture and the elaborately decorated doorways adorning the ancient buildings make a tour through Stone Town seem like time travel into the annals of history.”

traordinary restaurant worth visiting. The Rock Zanzibar balances atop a rocky outcrop jutting from the sea opposite MichanwiPingwe beach, a few metres off the shore. A short boat ride is necessary to access this famous eatery during high tide. Its surreal setting, warm atmosphere, personal service and delectable seafood cuisine makes dining in this quaint establishment a memorable experience.

other tropical fruits are in abundance and make for a delicious snack. The spice tours are easily combined with a visit to Jozani forest. This Forest, which is the last uninhabited area on Zanzibar, is famous for its Red Columbus monkeys and a mangrove swamp. Scuba diving on Mnembea Atoll along the east coast of the island lets you have a closer look at the imposing reef and the remarkable underwater fauna that inhabits it. The likelihood of a school of friendly dolphins coming to join in the fun is high in these parts. There are several accredited water sports operators offering reasonable rates. The picturesque beaches of Paje offer a rare opportunity to laze undisturbed as there are hardly any beach boys to pester you. Also on the eastern coast is an ex-

Magical sunsets Whereas most seaside sunsets are stunning, Zanzibar’s sunsets are more than stunning - they are magical. The aptly named Sunset bar is the perfect viewpoint to experience Zanzibar’s glorious sunsets with the triangular sails on the famous dhow boats silhouetted against the beauty of the setting African sun. This famous watering hole with a massive balcony overlooking the ocean is located in the 150-year-old Africa House Hotel. Like its glorious sunsets a Zanzibar holiday is an unforgettable one. Its blend of history, stunning beaches and friendly locals make it a destination worth visiting at least once in your lifetime. Email: mutunga.katia@gmail.com July 2015 Management Magazine

Motoring

Fathers, sons and cars

July 2015 Management Magazine

Motoring By KIOKO MUASYA

ome of my earliest and fondest memories are of my brother and I cheering my father on to overtake every single car on the road. Safety? Forget about it. Engine size did not matter. Police? Outrun them. In our minds, whatever car my father drove was the fastest, meanest machine on the road. As long as he was at the wheel, the car could outsprint and outmanoeuvre any contraption on wheels. Except his car could not. My father drove a 1970’s Toyota 1000. The 1000 at the end of the car’s name denotes the car’s engine size. 1,000 cc’s of fury- a lot of grunt with very little movement. A two-door station wagon had so much filler that magnets no longer stuck to its body. This car was a testament to my father’s ingenuity. It had been patched up with so many different materials and techniques that it looked like it would come apart any time. Then there were the permanent residents of the car’s boot. The rusty and oily pliers and number 12 spanner, the used and cut up tire tube (half of which was on the radiator hose), a jerrican of water to top up the leaky radiator and a fuel “mtungi”, a contingency measure for the inevitable day my father would wrongly guess his fuelling requirements owing to the out of commission fuel gauge. This car was a marvel of physics. No bigger than a Toyota Starlet and yet every Sunday, it ferried an entire family of seven to and from church. It did not fare well on the looks department. My father put a premium on cost over aesthetics when it came to repairs. So some parts came from different models of cars patiently fabricated by Mutua, my father’s faithful mechanic. First driving lessons And yet I loved this mangled, mongrel of a car. For it is where my father taught me how to drive. When I was no older than six years old, my brother and I would take turns sitting on his lap steering the car. This was the highlight of our trip upcountry. A few kilometres to my grandmother’s house, the tarmac would give way to a dusty murram road, a cue for us to use all the coercive tools in a six year old’s arsenal to get our father to allow us to drive. And most days he would gladly oblige. As soon as we could reach the pedals, our father made it his business to teach us how to drive. His logic was “boys will be boys and if they are going to steal my car I would rather they know what they are doing.” And steal his car we did. For among Mot Mot’s (for that is what we christened the car) many “endearing” features was the ability to be unlocked and started using any key or object that would fit

into the door lock and ignition space. As we grew older, Mot remained a constant in our lives. And although the years were not kind to her, owing to my father’s repair only philosophy to car maintenance, she was there for the first and last day of my primary and secondary school education. She was there for my first day of University. Mot Mot had been with my father so long that it assumed his personality. This inanimate object had inspired in us emotions reserved for people and animals. I hated Mot Mot during my teenage years. For as my peers got picked up from school in modern, state of the art cars, for me there was only Mot Mot, now a beat up, faded and stuttering rust bucket. I fervently prayed for God to prevail upon my father to replace Mot Mot. And for a moment I thought my prayers had been answered when Mot Mot’s engine came to a stuttering halt having done over a million kilometers and circling the odometer more than twice. But alas! This was not to be. For my father bought a used engine from a dealer at Baricho road, giving Mot Mot a new lease on life.

Boys will be boys and if they are going to steal my car I would rather they know what they are doing.” And when I finally got my driver’s license, it was Mot Mot that I used to get into all sorts of pre-pubescent mischief. With Mot Mot one never left the house without a few shillings, a toolkit and off course a tyre tube close by. And so I came to love this car that I had once loathed. Years later when Mot Mot was finally disposed off I was sad, because for me Mot Mot had come to represent the best memories of my childhood and youth. Mot Mot gave my father and I precious and treasured bonding moments that will forever remain etched in my mind. I can still remember the smell of my dad’s leather jacket as I sat on his lap wildly yanking the steering wheel from side to side. I can also remember the proud look on his face when, as youngsters, he caught us stealing Mot Mot. I remember, too the merciless beating that followed. I remember while in boarding school the feeling of anxiety to see my father on visiting day; and dreading the teasing that I would endure afterwards from my friends about Mot Mot. For a boy there is no one greater than his father, and there is no toy more treasured than a car. So I salute my father along with all other fathers who are creating new and precious memories for their children. Email: knzoka@yahoo.com July 2015 Management Magazine

2IÀFH Diary

Dealing with staff unrest Management in organisations need to handle employees’ perceptions to tackle unrests at work

STRIKE!

By JOHN DEMBE

“T

he plant is on strike” my secretary shouted to me early one Monday morning. “What do you mean they are on strike?” I asked. “I don’t know what the absolute definition is,” she replied, “All I know is that Ali Njoroge (my bottling plant manager) called and said all lines had been shut down and workers were milling around outside the plant. This came as a surprise as we don’t have a union and for collective industrial action to take place, some organisation was required. I immediately picked up the phone and called Jared Masiga, the Managing Director of our Soft Drink division to ask what was going on. He was almost as much in the dark as I was. I suggested that he calls Ali, finds out why the workers had walked out and get back to me. I also wanted to know how the employees had organised the strike as we don’t have a union. Frankly, I am happier dealing with the Employee Councils we established years back. Management style Jared called back in about 30 minutes, saying employees had a number of concerns and were particularly unhappy with Ali’s management style. They accused him of promoting people from his community and refusing to pay overtime when required. They said they would not return to work until they had a meeting with me. This put me in a delicate position. If I held a meeting with them before they returned to work, I would be bowing to their demands and setting precedence that any time they had a complaint, they would just walk off the job and I would come running. If I didn’t, we 80

July 2015 Management Magazine

would continue losing production and our customers would suffer. Tough but reasonable I decided to be tough but reasonable. I got both Jared and Ali on a conference call and instructed Ali to inform the workers that I would meet with them only after they resumed work. I did not want their decision about resuming work or not, contingent on my appearance. I wanted them at work first. I waited expectantly for about an hour before Ali called saying the workers had decided to return to work on condition that I gave them a specific date when I would meet them. I subsequently found out they resumed work before I communicated the time and place of our meeting. I took this as a complement that they trusted my word. However, I had another problem- we are organised into affiliates, each one has its own organisation and headed by an affiliate managing director. So I had

to ensure that even if I met the workers, I would have the affiliate managing director, in this case the plant manager present. That posed another challenge, how do I get the employees to ask questions with the plant manager there? They might feel intimidated. I solved that problem by calling head of the employee council and asking him to collect and present all questions/ complaints that the employees had. We met the employees the following Saturday. I chose Saturday to allow the maximum number of employees to attend. I attended the meeting together with the affiliate managing director and the plant manager. Since we had questions in advance, I ensured both the MD and the plant manager answered almost all of them. Most of them were problems of perception and not real issues. Our session gave everyone a chance to clear the air. Email: management@kim.ac.ke