Hilmy CaderWho adds the most value to our economy?
The Sri Lankan economy is powered by women at the ‘bottom of the pyramid,’ with significant socioeconomic challenges. Tea pluckers, tailors and housemaids are the main ‘value-adders’ to over US$ 8 billion (70% or more) of the foreign exchange that we earn per annum.
Confusion marketing
As a consumer, having a wide choice is considered healthy – be it companies, brands, products, services, channels, communications, price points and/or financing options. Thanks to open markets, low entry barriers and large-scale/low cost production options, the consumer now has an abundance of choice. This has now created a selection dilemma for consumers, who find that they have too much choice.
It’s no Irish joke!
Until around 2006, Ireland was considered as an economy to be emulated, given the knowledge-based businesses it built and its ability to attract leading multinationals away from other European capitals.Fast forward 2010, Ireland’s external debt is in excess of 10 times its GDP and it is desperately seeking a bailout. It all seems the usual story.
Budgeting: ‘Incrementalism’ vs. ‘Quantum Leaps’
Most companies and countries tend to approach their budgeting process on an incremental basis, compared to the previous year– an approach we at MTI call ‘Incrementalism’. This works well in mature markets. Few countries and companies really get an entirely new ‘lease of life’. Sri Lanka Inc. now has that great opportunity and in such scenarios ‘Incrementalism’ has limited appeal.
Who wants to be a CEO?
Corporate happiness, we are made to believe, is always at the top of the organisation. Considering the glamour and dollars it attracts, unsurprisingly there is a ‘gold rush’ to get up the greasy corporate ladder. Increasingly, there is evidence of very high stress levels in corporate leadership, manifesting itself in syndromes as diverse as heart disease and white collar crime.
Ladders and snakes
This is a corporate game. Those trying to climb the greasy (and sometimes imaginary) ‘Corporate Ladders’ at any cost and the ‘Corporate Snakes’ spending all their energies on stinging them down. Organisational politics is destroying significant economic and shareholder value. It is still common place to blame trade unions as the architects of organisational politics, when in fact the real issue lies with white collar jobs, particularly at middle management level.
The ‘curse’ of confidence
We live in an era where ‘confidence’ has become a precious commodity. ‘Wall Streets’ and ‘Main Streets’ are both driven by confidence. A ‘hiccup’ in confidence in one facet leads to a chain reaction, in some cases driving bankruptcy in economies and enterprises. Lehman Brothers and the Greek economy found the blow of confidence (the lack of it) was as powerful as its economic /financial performance. The real danger though is the pre-occupation of corporates and financial markets in managing (in some cases manipulating) confidence – when in fact we should be driving real economic value addition.
When geography becomes history!
Excepting a few multinationals, the marketing structures (and therefore strategies) of most companies are country-centric. The penetration of global media, the power of the internet and the reach of large retail chains have reduced the significance of national borders (from a marketing perspective). In some cases, this has challenged the economic viability of conventional single country marketing. Is it time to redraw the world (marketing) map? Will single country marketing survive or will we see the emergence of a new breed of new multinationals?
Learnings from boxing: ‘Dian-ise’ other sports
It is great to see that Sri Lanka has achieved ‘real’ success in a sport other than cricket. However, it is sad that it has taken us 72 years to win such a coveted gold medal. What are the management learnings from this great boxing achievement? While all sports in Sri Lanka have a management function (at least by name!), the striking difference I see in boxing is the passion and unwavering commitment of the leader, who has made it his mission and vision to achieve ‘gold’ at the highest levels. So, how could other sports ensure a ‘Dian’ to manage and lead their respective sport to greater heights?
‘Mining’ for lessons from Chile
In an era when thousands die without much of a media fuss, it is intriguing how the fate of 33 poor Chilean miners (alive though!) has turned into a global media story.While certainly sympathising with the humanitarian aspects of the incident, it has definitely attracted disproportionate media attention (compared to the challenges the world faces today).
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