management - MIM · Boon Siew Sdn. Bhd. group of companies by his late father-in-law, Tan Sri Loh...

management

www.mim.org.my PQPP/11505(938) W.MALAYSIARM10.00 E.MALAYSIARM12.00

HOW TO FIX A BROKEN GLOBAL FINANCIAL SYSTEM

THE E-COMMERCE GOLDRUSH

HOPPING ONTO THE

A MULTI-GENERATIONAL WORKFORCE

HOW TO MANAGE

SERVING SELFLESSLY

TAN SRI OSMAN CASSIM

RESHAPING A NATION BY

BOOSTING THE DIGITAL ECONOMY

THE GAME CHANGER

DATO’ ROBERT WONG LUM KONG

VOL.48NO.4|2013

24E-Commerce

Goldrush

CO

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NTS

10 Paving The Road To SuccessAn inheritance that has propelled Dato’ Robert Wong from the social middle class to the booming empire that is Kah Motors and Oriental Holdings. We discover how money doesn’t always maketh the man but sometime heart and soul wins over

16 Charting Our Course Throughout The YearsYBhg Tan Sri Osman S. Cassim recently stepped down as Vice President of the Malaysian Institute of Management after assuming the role for over 24 years. He shares his past experiences and sheds light on his thoughts on the institute

24 E-Commerce GoldrushMany Malaysians have already discovered the benefits of starting online businesses. So what works? We speak to three individuals running successful e-Commerce to uncover some insights

33 Digital Business: Game Changers Of The Technology RealmThe growth of the digital economy is expected to move the country to the next phase

38 An Uncharted JourneyIt’s not always one can grab the bull by the horns and take on corporate challenges and make success stick like a post-it. We discover how Surinjeet Singh’s career takes a different turn from what he had intended.

44 Back To NatureRead how Andrew Sebastian, head of Communications at the Malaysian Nature Society, roots for nature conservation and protection

48 Leadership BoostA strident critic, Tun Dr Mahathir Mohamed outlines his blueprint for a successful future

52 Managing A Multi Generational WorkforceWe look into the challenges facing the global business landscape and the accompanying new realities

56 An Inside Peek: The American AgendaUnited States Ambassador to Malaysia Paul W. Jones opens up about the future of the U.S. economy, President Obama’s key policies, Asia-Pacific efforts and joint initiatives between the U.S. and Malaysia

10Paving The Road To Success

48Leadership

Boost

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BEST FOR SUCCESS64 Management DiaryWhat’s happening around town and globally for the months of October, November and December

68 InspirationRadio 4’s Nigel Green aka The Green Man gets candid about the realities of life and how to get your mojo going on any given day.

70 IdeasFind out how to achieve more in less the time and how to ease the transition during staff changes

74 MotoringMeet the crème of the crop of the premium compact SUV market—the Audi Q3.

76 VacationDiscover Turin in Italy that is quaint as it is full of baroque, neoclassical and Art Nouveau architecture that is steeped in history

REGULARS6 CEO's Foreword8 Editor’s Note96 Chairman's View

EXECUTIVE DIGEST Weathering The

Management ClimateWhat are the key management challenges keeping CEOs around the world up at night? Bart van Ark, Executive Vice-President and Chief Economist of The Conference Board deciphers some key regional insights

From Smart To WiseActing and leading with wisdom with the functional smart leader and the business smart leader

The Aig StoryLearn how a visionary revolutionisedthe insurance industry through his legendary genius

The End Of Ethics And A Way BackHow to fix a fundamentally broken global financial system

Moving A Company With The TimesDiscover what makes household appliance company Haier unique

74

68Radio 4’s Nigel Green aka The Green Man gets candid about the realities of life and how to get your mojo going on any given day.

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management 6

Hold on to the reins, readers. We’re in for a ride.

Forgive me if that sounds rather flippant, but how can we not brace ourselves for what seems to be yet another cycle of change? We are, on a daily basis, being inundated by swathes of reports of what seems to be an impending global financial meltdown. While we have yet to receive communiqués on any layoff en masse as with the earlier recession, who is to say that this is not on the cards for some?

Now that’s a worrying thought indeed. But here’s the thing, are we allowing our worries to paralyse us, so much so we digress? No business can survive a standstill. It is not business as usual. Are you still playing by the rules of a game which ended years ago? If you are, it is time for a rude awakening. Goal posts have shifted, and there’s a new referee in town.

With that realisation, it is essential to have a strong team supporting the mission of the business. But this team will only be motivated to move if their leader steps up to the challenge. Employees look to their CEO for direction and they need to know that there is someone capable at hand. Is he/she stepping up the job and making his/her cohorts follow suit?

According to the World Economic Situation and Prospects 2013 report released by the United Nations, Malaysia’s economic growth registered at 5.1per cent, similar to 2011 but lower than 2012 (5.6per cent). 2014’s forecast looks marginally better at 5.2per cent, placing us somewhere in the middle when compared

to US, Japan, EU, Arab, China, India, Singapore and Thailand.

This growth may be attributed to what we term as Najibnomics. This encompasses the creative and innovative ideas, policies, strategies and programmes of YAB Dato’ Seri Najib to lift the nation toward a high- income and developed economy by 2020, which are supported by The New Economic Model, GTP, ETP, Digital, Community and Social Transformation Programmes.

In essence, Najibnomics seeks to re-energise the private sector, develop a competent workforce, enhancing both the sources and sustainability of growth all through transparent and market-ready affirmative action. It is worthwhile to note that these policies were conceptualized through public engagement, with a focus on the well being of the citizens.

This can be seen through the benchmarking of Malaysia against other countries in terms of the World Happiness Index. In this context, the measurement tool of Najibnomics is in fact, the Malaysian Quality of Life Index (MQLI). It’s that High-income, High-tax and Happy Country benchmarking the world’s happiest countries such as Netherlands, Finland, Canada, Denmark and Sweden. MIM supports the objective of balancing Economic growth with Happiness.

And are we working together to achieve the objective of MQLI?

In addition, this issue is packed with some interesting articles that further benchmarks Malaysia against other countries. Be inspired by the success stories, and acquaint yourself with issues that may be of importance to you.

Haji Zulkifly BaharomInterim Chief Executive Officer, Malaysian Institute of Management

Phot

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Just

in N

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/Stu

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MALAYSIAN INSTITUTE OF MANAGEMENT

HONORARY FELLOWSRoyal Professor Ungku A. AzizYABhg Tun Dr Mahathir MohamadDYMM Sultan Azlan ShahYB Dato’ Seri Anwar IbrahimYABhg Tun Abdullah Ahmad BadawiYAB Dato’ Seri Mohd Najib Tun Abdul Razak

COURT OF EMERITUS FELLOWSPresidentYABhg Tun Mohd Hanif B Omar

Vice PresidentYBhg Datuk Dr. Paddy Bowie

In accordance to date of admissionYBhg Tan Sri Osman S. CassimYM Tunku Tan Sri Dato’ Seri Ahmad Tunku YahyaYBhg Tan Sri Dato’ Azman HashimIr. George Lee Yau LungDr. Tarcisius Chin Nyet LeongMr. Robert Kuok Hock NienYAB Pehin Sri (Dr) Haji Abdul Taib bin MahmudProf. Liew Shou KongYBM Tan Sri Tengku Razaleigh bin Tengku M HamzahThe Honourable Chief Justice (Rtd) Yong Pung HowYBhg Prof. Tan Sri Dato’ Dr. Mohamed Rashdan bin Hj BabaYBhg Tan Sri Kamarul Ariffin Mohamed YassinTan Sri Dato’ Sri (Dr) Sallehuddin MohamedYBhg Tan Sri Wan Azmi bin Wan HamzahYBhg Tan Sri Kishu TirathaiYBhg Tan Sri Dato’ Abdul Aziz Abdul RahmanYBhg Tan Sri Dato (Dr) R V NavaratnamMr. Niels John Madsen R, R1YBhg Datuk Haji Mohd Saufi bin Hj AbdullahYABhg Tun Dr Ahmad Sarji Abdul HamidYABhg Tun Musa HitamYBhg Tan Sri Dato’ Seri Dr Teh Hong PiowYBhg Tan Sri Dato’ Dr Lin See YanYBhg Jen (B) Tan Seri Datuk Seri Mohd Zahidi bin Hj ZainuddinYAM Tunku Tan Sri Imran Ibni Almarhum Tuanku Ja’afarYBhg Tan Sri Dato’ Dr Mohamed Munir Abdul MajidYBhg Tan Sri Dato’ Sri Hassan MaricanYBhg Dato’ Ng Tieh ChuanYBhg Tan Sri Dato’ Sri Tay Ah LekYBhg Datuk Seri Haji Mohamed Iqbal RawtherYBhg Tan Sri Datuk Yong Poh KonYBhg Prof Dato’ Wira Dr Hj Khairil Annas bin Jusoh YBhg Tan Sri Dr Ali Hamsa

GENERAL COUNCIL 2013-2014ChairmanYBhg Datuk Seri Haji Mohamed Iqbal Rawther

Vice ChairmanYBhg Dato’ Ng Tieh Chuan

Court of Emeritus FellowsTan Sri RV NavaratnamMr. Niels John Madsen, R, R1

FellowsProf. Dr. Khaliq Ahmad bin Mohd Israil

Associate FellowsMr. Jamel Rajah bin Abdullah

Ordinary MembersTn. Hj Zulkifly BaharomMs. Rita KrishnanMr. Kamal Batcha DawoodMr. Geoff Andrew

Associate MembersMr. Mah Kong Howe

Group MembersDato’ Dr. Basant Singh SidhuMr. Joseph Rocky Gomez

CEO’s Foreword

management 11 management 10

THE GAME CHANGERDriven to succeed, this Penangite refused to sacrifice his principles, making good the responsibilities his father-in-law bequeathed him.By Sharmini M. Rethinasamy Photography by Howard/Show Up PicturesMakeup Joey Yap

► F R O M T H E C O R N E R O F F I C E ◄

Like fine wine, Datuk Robert Wong Lum Kong, DSSA, JP, at 72, has aged gracefully. His debonair charm and friendly personality instantly puts everyone at ease regardless of social

standing. He has the ability to involve those around him as he speaks as well as give credit where it is due.

An affable personality, it is no wonder he was bestowed the honour of becoming Group Managing Director of Oriental Holdings Berhad and Managing Director in Boon Siew Sdn. Bhd. group of companies by his late father-in-law, Tan Sri Loh Boon Siew. It is a task that cannot be taken lightly but he has assumed it wholeheartedly and, today, the fruits of his labour are recognised.

THE HEIR APPARENTWhilst the baton was to be passed on to Loh’s son Loh Kah Kheng, the latter’s untimely demise in 1987, saw a twist in the corporate chart. “He really loved his son so much,” recalls Robert of the tragedy. “Tan Sri had wanted to give him the company. He then passed it on to me to manage trusting that I already knew how to run the company.”

Obviously trust wasn’t as forthcoming in the early days as it is now. A young accountancy graduate from Perth Technical College, Robert returned from Australia in 1964 and assumed the role of General Manager and Director in his family business. He caught wind of the fact that Loh’s eldest daughter, Loh Ean had just returned from London after completing her studies. With suitors lining up to woo Ean, Robert needed to stand out.

“I asked her out on a date and took her to an Indian movie,” he recalled, laughing. “I went to the house and met the family over dinner where I learnt that matchmakers had already distributed my photos to Ean's family earlier and I had been rejected by her. Before I was bombarded with questions, her grandmother shoo-ed us off, knowing how uncomfortable and unnerving it was going to be. After all, I was from a middle class family.”

Thereafter, Robert proved to be a fine match and was married to Loh Ean in 1966. Today, two children, Susan and Tony, and grandchildren in tow, Robert reflects on the charmed life he has led only because he had the support of a wonderful, understanding wife. “She managed the household and the children,” he remarks. “If it wasn’t for her understanding, life would have been very challenging as I was taken away on business travels and meetings ever so often, not to forget the entertaining of clients at night! But she stood by me throughout… she truly is an amazing woman.”

He joined Oriental Holdings Berhad and Boon Siew Sdn. Bhd. group of companies as Advisor and Director respectively in 1972. In 1976, he was appointed to the board of Oriental Holdings Berhad. Teck See Plastic Group was established into an integrated one-stop centre by Robert and his team from its humble beginnings in 1978.

It is possible that the commitment he showed caused the Chairman and his father-in-law to gravitate towards him as he recognised that Dato' Wong had the ability to drive the business that he had built over the years.

THIS INCLUDES FACING DOWN CHALLENGES

AND INSTILLING COUNTER MEASURES AGAINST

OBSTACLES TO ENSURE THAT GOALS MATERIALISE


YBhg Tan Sri Osman S. Cassim recently stepped down as Vice President of the Malaysian Institute of Management after assuming the role for over 24 years. He graciously accepted MIM’s invitation to share his past experiences and to shed light on his thoughts on MIM.By Dr Nazily Mohd NoorPhotography by Howard/Myth Studio

CHARTING OUR COURSE THROUGHOUTTHE YEARS

► E X E C U T I V E C H AT ◄

Hailing from Ipoh, Perak, YBhg Tan Sri Osman S. Cassim’s father was a medical practitioner in private practice.

In retrospect, his father holds the distinction of being the second Malay in the country to graduate as a medical doctor. The fourth in the family, Osman had his early education in the English Preparatory School in Ipoh, followed by the Anderson School, Ipoh. But it was put on hold for a good reason – the advent of the 2nd World War. That didn’t faze the determined young lad, who then picked himself up and completed his Senior Cambridge examinations in 1948. “In December, 1948, I received a letter from the education department offering me a place to pursue the sixth form in the Malay College (Kuala Kangsar). From there, I was admitted to the University of Malaya in Singapore where I did my Arts Degree and my Honours Degree in 1955,” he shared. Osman recounted how his Senior Cambridge results showed that he was more inclined to science after scoring distinctions in Physics, Chemistry, Mathematics and Additional Mathematics. “But when I joined the university, I just went for the Arts. After my graduation, and having got my Honour’s Degree (which I did in Geography), it didn’t occur to me to do anything else but to try and apply for the Malayan Civil Service. I submitted my application and was eventually admitted in 1955.”

SERVING THE NATIONNow, what was it that induced Osman to choose the government administrative

service? “Prior to Merdeka, the Malayan Civil Service was the topmost career that one could enter into as opposed to becoming a police, customs or immigration officer.” Osman's family played a big role in his future plans too. “I had a cousin who started off as an officer in the pre-independence Malay Administrative Service (MAS) and later was promoted to the Malayan Civil Service (MCS). Having spent my school holidays with him and his family, I realised that the people who are prominent in society are those (apart from business people) who were the administrators of the government service. Additionally, as a district officer, you are highly regarded by the people in the district. So, with him as an example, I was inclined to join the civil service.” Osman recounted that his cousin’s influence was so great that he had no other aspirations. The Malayan Civil Service was the topmost priority in his mind. He served as an officer with the MCS (now known as the Perkhidmatan Tadbir dan Diplomatik or PTD) until he retired in August, 1985. During his 30 years of service, among other postings, he served as the Secretary-General in the Ministry of Labour, the Ministry of Information and Ministry of Home Affairs from 1955 to 1985. Tan Sri Osman Cassim was also Director-General of the Public Services Department Malaysia from 1980 to 1985. In 1985, soon after his retirement from government service, he was appointed National Executive for Malaysia and Brunei of the General Electric Technical Services Co Inc. (USA) from 1985 to 1988 and subsequently as National Advisor to the General Electric International (USA) from 1988 to 1993. He also served on the Board of Directors of Southern Bank Berhad from 1990 to 2005 as its Chairman. Currently, he is the Chairman of Hai-O Enterprise Berhad.

THE JAPANESE RED ARMY (JRA) HOSTAGE DRAMAServing the nation requires one to be selfless, putting the needs of the country ahead of one’s personal gain and needs. This is true

SERVING THE NATION REQUIRES ONE TO BE SELFLESS, PUTTING THE NEEDS OF THE COUNTRY AHEAD OF ONE’S PERSONAL

GAIN AND NEEDS.


With Neilsen statistics showing Malaysian online commerce figures up to RM2 billion in 2011 and rising more than 10 per cent each year,

many Malaysians have already discovered the benefits of starting online businesses. So what works? We speak to three individuals running

successful e-Commerce to uncover some insights. By Karan Dhillon

E-COMMERCE GOLDRUSH

EDMUND LOH,INTERNET ENTREPRENEUR,

► E N T R E P R E N E U R S H I P ◄

EDMUND LOH,INTERNET ENTREPRENEUR, www.internetsalesmachino.com

Long before people opened up to the idea of buying products online, information was the hottest selling item on the Internet, and Edmund Loh was one of the pioneers of his generation of savvy e-commerce marketers to carve himself a successful niche in this industry. Working as a humble office boy before building his online empire of Private Label Rights resources, Edmund stumbled upon the idea of e-commerce when his office mate made a suggestion and he found a source of inspiration. “On National Day in 2004, I picked up a book written by Sen Ze. If there’s any single one person I owe for opening my eyes to the possibilities of e-commerce and Internet Marketing, it’s got to be him,” says Edmund. He quit his job the following year in March, got a 56K modem, invested his entire savings into his online business, and by December 2005, he was debt free and never looked back.

Who are your customers and what do you sell to them?For a big part, my target market is publishers, resellers, membership owners, webmasters, coaches, speakers and trainers. Usually, these people need content for themselves to teach or share with their own end-users – so I provide Private Label Rights to my information

products for them to edit, rebrand and use for their own online business. So you can say that I am a ‘manufacturer’ of information products. Just last year, I also started taking up clients who want to build their own online business – specifically the information business.

How are newer technologies impacting your business and how do you adjust? While I am not a fan of using Twitter (just a personal preference), Facebook (FB) has helped give a face to my online business where previously my email subscribers only knew me by name. Of course, there are challenges. In my nature of business, it is common to have a lengthy sales page to sell a single product – this practice may have to be changed drastically to become ‘mobile friendly’. Also, social media sites are definitely affecting email open rates. I don’t think email marketing will die per se, but it will be greatly affected by these changes. That is why I’m building both my email list and followers on my social media platforms like FB and Instagram.

How do you court repeat business?Essentially, I do three things:Upsells – basically these are offers I show my buyers immediately after they make an initial purchase of any of my products. I also show other closely related offers to my new buyers. It makes sense to do this because for one, these people have already utilised their credit card and two, at this stage, they are in what I call a ‘buying trance’. Done correctly, you can easily boost your sales by 20 per cent plus or more with no extra traffic or buyer count!

Continuity – in my opinion it is easier to get the same buyer to buy more from you as opposed to persuading many new buyers to buy a single item. Continuities – or monthly offers – are the best way to create loyal customers (provided you give real value of course!). You can have a person lock in his subscription once, and he can continue paying you every single month or annually

IT DOESN’T BOTHER ME (MUCH) IF ANOTHER PERSON BLATANTLY

COPIES OR RIPS OFF MY WEBSITE; BUT THEY USUALLY CANNOT RIP OFF OR

‘DUPLICATE’ THE SAME CONNECTIONS I’VE BUILT WITH OTHER PEOPLE THAT

MATTER IN THIS BUSINESS.


a page loads also plays a key factor in this 3 minutes window as a slow website would only increase the chances of that person abandoning the site.

How did you build your marketing mailing list through your website?Basically, every customer who buys from MPHONLINE would have to register for a user account and during this process, they would have to enter certain information related to them. This information will then be stored into our database and used for any marketing or promotional programmes.

How have you used direct mail in your business? What systems do you use to conduct a direct mail campaign? We use electronic direct mailers (EDMs) to communicate with our customers about upcoming promotions, deals and book related events. Our current systems provider has an automated campaign feature that allows us to create and run targeted email marketing campaigns to customers based on their buying behaviour and personal interests. This is a very effective way of marketing for us as it makes the promotion more personalised and relevant to the targeted customer, which helps to increase our sales conversion rate.

EDMs are also used to send personalised emails and vouchers to customers to thank and reward them for shopping with us so that they feel valued, and to encourage repeat purchases.

How important is SEO to your business?We have in the past been doing some display advertising across a network of websites, but they are mainly for awareness campaigns. It remains a fact that the conversion rate from display advertising is lower in comparison to a paid ad on a search engine, also known as search engine marketing. This is because a user who sees a display ad may not have an intention to buy yet, but the person who sees an ad while searching for a particular item on a search engine has the ready intent to buy, thus the conversion rate from search engine marketing is much higher. Having said this, it doesn’t mean that display advertising is a waste of time as it may contribute to the customer’s eventual decision to click on the search ad when he/she has the intent to buy. So I feel that it is important for any online business to allocate some budget for search engine marketing. MPHONLINE currently uses Google Adwords in our search engine marketing.

What would you say has been the key to your success?I think the key to our success would have to be teamwork. No single business can survive as a “one-man show”, and given the dynamism of the online business, cooperation between departments is crucial in ensuring that operations are carried out in the most efficient manner. It definitely helps to have a team that is able to work under pressure and can constantly push each other to achieve common goals. So credit goes to everyone in the MPHONLINE team, especially those who have been with us from day one. - m

CAROL FUNG'S GUIDE TOONLINE RETAILING

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The growth of the digital economy is expected to move the country to the next phase. By Cass Shan

► I N N O VAT I O N & T E C H N O L O G Y ◄

DIGITAL BUSINESS: RESHAPERS OF THE TECHNOLOGY REALM

► E N T R E P R E N E U R S H I P ◄


It’s not always one can grab the bull by the horns and take on corporate challenges and make success stick like a post-it. We discover how one man’s career takes a different turn from what he had intended.By Suguna Rethinasamy Photography by Felina Hung/Show Up Pictures

AN UNCHARTED JOURNEY

► L E A D E R S H I P ◄

Not too long ago, a young graduate gave up his dreams of becoming an aeronautical engineer and took on the first

job offered to him. It was not a path he had carved out for himself but rather one that was carved out for him. He jumped into it whole-heartedly and, before long, it went from being just a job to a passion driven ambition of epic proportions. Before starting his own training and consultancy company, Topesh Consultancy & Training Services (Topesh), at the tender age of 26, Surinjeet Singh was the Regional Executive for EHS (Environment, Health and Safety) for Jebsen & Jessen South East Asia, responsible for overseeing the development and implementation of ISO14001 (Environmental Management System) and OHSAS18001 (Occupational Safety & Health Management System), including its integration with existing standards such as the ISO9001 (Quality Management System) for over 30 companies of the Group across South East Asia, Bangladesh and China. Today, 10 years down the road, Surinjeet’s company Topesh has amassed a number of accolades and awards. Notably, they have assisted and led their clients Kualiti Khidmat Alam (Malaysia) and Mashhor Waste Management (Brunei) Sdn Bhd to achieve the Gold Award for Excellence in Occupational Safety & Health from RoSPA (Royal Society for Prevention of Accidents, UK) since 2009. They have also assisted and provided consulting services on road

IN TODAY’S BUSINESS, EHS IS PART OF THE FUNDAMENTALS OF A SUCCESSFUL AND RESPONSIBLE

BUSINESS AND THE COUNTRY, AND THE REGION (SOUTH EAST ASIA) AS A

WHOLE, IS PLAYING CATCH UP.

safety that led their client, Kualiti Khidmat Alam, to achieve the Gold Award in MORR (Management of Occupational Road Risk) by RoSPA UK.11 On the environmental front, they have provided support in helping Kualiti Kitar Alam achieve the Prime Minister’s Hibiscus Award for Environmental Excellence – a national level award in Malaysia. To date they have completed about 100 successful certifications for their clients ranging from ISO9001, ISO14001, OHSAS18001 to MS1722. Some of the companies he has had the privilege to serve and work with include UEM Environment, KPJ Healthcare Berhad and PTAS Sdn Bhd (Brunei).

THE CHOSEN PATHSurinjeet graduated in 1999 with a Bachelor’s Degree in Aeronautics which is a far cry from the field he is in today. So why did he decide to take a different path altogether as a fresh graduate? “It was a natural and unplanned transition,” he divulged. “I was employed as a quality engineer at one of Jebsen & Jessen’s group of companies. There, I was given the opportunity to lead the local EHS team and was given the responsibility of obtaining the ISO14001 and the OHSAS18001 certifications within a year. Not having any background then, I was gifted with the opportunity to attend seminars and training sessions to allow me to perform the function of EHS.” So why quality which is somewhat a far cry from aeronautics? And right after graduation? “Well I needed a job and the country was just starting to recover after the 1997-1998 economic crises so I decided not to be choosy and I took the first job that came to me,” he explained. Eventually all the experience and skills he honed was channelled towards establishing his own company. “It was challenging and somewhat like an adventure,” he reminisced. “I started off with no clients of my own, with very little cash for capital but equipped with a rich and multi-


► E C O S T R AT E G I S T ◄

By Jillian Thomas Photography by Soon Lau/Show Up Pictures

BACK TO NATURETo some, he is a cape-crusading superhero fighting on behalf of Mother Nature and all her creatures. To others, he is an avid bird-watcher who simply loves spending time in the great outdoors. Whoever he is, Andrew Sebastian, Head of Communications at the Malaysian Nature Society, clearly roots for nature conservation and protection.

Unlike many Malaysians, who shrink at the mere thought of spending time under the scorching tropical sun, dripping with sweat – thanks to the

intense humidity – and the inevitable bug and creepy crawly encounters, Andrew Sebastian simply relishes it. It seems like nothing really fazes him – not slimy blood-sucking leeches, nor crusty critter cockroaches, nor being submerged neck-deep in a murky swamp. For Andrew, Malaysia’s diverse wildlife and eco-system needs to be experienced first-hand and protected unequivocally. Andrew spent much of his childhood in the Forest Research Institute of Malaysia (FRIM) where his father worked. At 14, he was already a volunteer who did as much as he could to help out with environment conservation and protection. When the time came for him to pursue his tertiary education, Andrew opted for a law degree, which then led to a short stint in a legal firm. Realising though that his true passion was for nature and the environment, he left the law practice and started to work full time for the Malaysian Nature Society (MNS). “At first my friends and family thought I was crazy. That I would stop practising law to work for a non-profit organisation – it simply didn’t make sense to them at the time,” recalls Andrew. Luckily for him though, they soon discovered that the immense passion and dedication Andrew had, was indeed making a difference. When Andrew started working with MNS, almost 15 years ago, he was involved in practical and grass root projects such as the conservation and protection of the Belum Temengor Forest Reserve, Pulau Redang, Cameron Highlands and the Sungai Buloh Forest Reserve. Now, as the Head of Communications, Andrew is still very much hands-on with much of the MNS projects as well as creating community awareness, raising funds, maintaining corporate partnerships as well as dealing and liaising with the media on behalf of MNS. “A major part of my job involves promoting the activities and making known the issues



A strident critic outlines his blueprint for a successful future. By Cass Shan

LEADERSHIP BOOST

T un Dr Mahathir Mohamad's prediction of the future is tinged with optimism and wisdom borne from experience. He opines that the best

way to move forward is to reflect on the past because trends formulate during the passage of time. However, there were times when the future could scarcely be foretold due to radical changes that could steer it in another direction. This could be seen in the Arab Spring revolution. He shared his views at the recently concluded Perdana Leadership Foundation CEO Forum 2013 held at the Berjaya Times Square Convention Centre. Dr Mahathir recalled Malaysia as it had been in the beginning – at the time when the country was struggling for independence. It was not a developed country with a very low per capita income, dependant almost entirely on the export of tin and rubber. Also, the country did not produce enough food for its own consumption, although at that time, the population of Malaya was only about five million people. These people were made up of three different races. These three different races were also different from the point of view of their language, their culture, and their abilities. Their skills were different and they lived apart from each other. The Chinese lived in the towns, the Malays liked to live in the rural areas except for a few government servants, and the Indians were largely in the rubber estates. So the races didn’t live together, they lived apart and they could hardly talk to each other.

LANGUAGE HAS A UNIFYING

FORCE AND IS ALSO ESSENTIALFOR TOURISM.

WEALTH SHARINGInstead of seizing the wealth of the other races, all the races decided to share this country. This is quite different from what happened in many other countries where the indigenous people would want to get rid of the so called newcomers or people of other races. Myanmar is a good example. In Myanmar, the Indians dominated the economy and this caused resentment among the colonists who expelled the Indians and took over their property. The same thing was expected in Malaysia but instead of that happening, the Malays were not only willing to share the country with the non-indigenous people but they actually reduced their political influence by increasing the number of non-Malays who qualified to become citizens. This is not the usual thing that happens so we see that accommodation is the trend in Malaysia.

THE MALAY LANGUAGEDr Mahathir noticed that immigrants who were sent to Indonesia, for example, would master some knowledge of that language but not in Malaysia. Even after serving their term, they did not learn the language because they could get by with just sufficient knowledge of it. This is the fault of the Malays because if anyone talked to them in Malay, they would reply in English. Others are also at fault because they found it unnecessary to master the Malay language. Language has a unifying force and is also essential for tourism. For example, to make Malaysia truly Asia and to show that this is truly Asia, we would like to promote the cultures of all the three different races in Malaysia. Also, when the schools were converted to national schools, the Chinese schools prospered because the Chinese went back to their schools; and they did not speak Malay. Instead they spoke Mandarin, or their own dialect. Certainly, the influence of language in bringing people together was almost completely lost. “We did try, for example, to at least have a common campus. Bring all the three


A look into the challenges facing the global business landscape and the accompanying new realities.By Professor Sattar Bawany

► H U M A N C A P I TA L ◄

MANAGING A MULTI GENERATIONAL WORKFORCE

The business world is becoming progressively global. Products and services offered by businesses are also becoming more focused and

targeted at specific demographic segments. Besides, many organisations today have customers all over the world who demand excellent services and products that meet their diverse needs, expectations and priorities. The composition of the workforce is also changing significantly across the globe. Never before have 5 generations worked side-by-side in the workplace. After World War II, the Traditionalist generation, born between 1922 and 1945, tended to work with the same employer for the duration of his career. Beginning with the Boomers, born between 1946 and 1964, women and ethnic groups began entering the workforce in increasing numbers, bringing different needs and perspectives to the workplace. As the Gen Xers entered the workforce, they augmented job-hopping in an effort to increase their income and/or to balance their lifestyle. Although some employers made accommodations in response to the demographic shifts, the basic work model — top down, command and control, one-size-fits-all, 8-to-5 workday — did not radically change. Now, the emergence of the digitally-savvy Millennials or Gen Yers has

the potential to change the face of the working world to be more collaborative, to use virtual teams, to use social media, and to offer more flexible work hours. The Fifth generation, Gen Zers or The Linksters, has started coming into the workforce. The 5 generations and their birth years are depicted in Table 1.

CHALLENGES IN MANAGING A MULTI-GENERATIONAL WORKFORCEA major challenge for today’s Traditionalist and Baby Boomer managers is to figure out how to develop younger workers into tomorrow’s managers under a new business environment. A pivotal question for managers is, “Do we want our legacy to be of mentoring and empowering the next generations, or of fighting them tooth and nail?” Organisations that embrace generational differences in values, ways of getting things done, and ways of communicating, will thrive. Demographic and social trends will have a significant impact on the workforce in the coming years. In today’s struggling global economy, it is more important than ever for organisations to leverage the knowledge, skills and abilities of all workers, from all generations. By capitalising on the strengths and values of different generations, business

T

GENERATION BIRTH YEAR WORK PERSPECTIVES

Traditionalists 1922 - 1945 “Company loyalty” - Believe they would work for the same company for their entire career.

Boomers 1946 - 1964 “Live to work” - Believe in putting in face time at the office. Women enter the workforce in large numbers.

Gen Xers 1965 - 1980 “Work to live” - Believe that work should not define their lives. Dual-earner couples become the norm.

Gen Yers (Millennials) 1981 - 1994 “Work my way” - Devoted to their own careers, not

to their companies. Desire meaningful work.

Gen Zers (Linksters) 1995 to present

“Living and Working their way” - Their struggles in the work environment are tied to their youth and inexperience. Desire for change, stimulation, learning and promotion that will conflict with traditional organisational hierarchies.

Table 1: The Multi-Generational Workforce


United States Ambassador to Malaysia Paul W. Jones opens up about the future of the U.S. economy, President Obama’s key policies, Asia-Pacific efforts and joint initiatives between the U.S. and MalaysiaBy Karan Dhillon


AN INSIDE PEEK:THE AMERICAN AGENDA

It is fair to say that the United States government has come under extra scrutiny over the last few months, with President Obama's re-election and the controversial

Fiscal Cliff saga among some of the more exciting political and economic highlights. Shedding some light on what can be expected in the Obama administration’s second term, Ambassador Paul Jones took time to visit MIM and addressed a full house recently. His keynote address, entitled “President Obama’s Re-Election: What it means to the Economy and Business in 2013 and beyond” focused on why the U.S. remains upbeat about its economic recovery, understanding key objectives under the President’s agenda and outlining the major development initiatives spearheaded by the U.S. in the Asia-Pacific region, as well as in Malaysia.

ON THE FUTURE OF THE U.S. ECONOMY…“You’ve been hearing discussions about our budget, about government spending and about taxes… there is a lot of smoke and a lot of noise but that is how we make policy… it’s part of our system and sometimes it can make people a little nervous when they hear too much about the intricacies of a policy but what’s the really important point is that things nevertheless get done and move forward amidst all this sound and noise. Even though it may not always be a pretty picture to watch. “Regardless of what impression we may create, the reality is that the U.S. economy is moving in a very positive direction. Our economic recovery is evident in many sectors. The USD15 trillion GDP grew at half a per

PROSPERITY AT HOME IS INEVITABLY TIED TO PROSPERITY

GLOBALLY – AND STABILITY GLOBALLY.

cent last year and is continuing to grow. For a large and developed economy like ours, it’s very positive news. Over the last three years, the private sector in the U.S. has added 6.1 million new jobs, including almost half a million in the manufacturing sector. That’s the strongest growth in manufacturing jobs since the mid-1990s. “… the U.S. remains the most innovative economy in the world and that’s the basis upon which I think the future is bright. U.S. companies are competitive and many are sitting on large amounts of cash to invest. The energy revolution is going on right now in the U.S. and I think it’s changing many economic forecasts. Companies are finding that the U.S. is actually a very competitive place for manufacturing and for the energy industries. “The U.S. Federal Reserve figures show that banks are more willing to lend and that customers are seeking more credit. They both prove our confidence in our economic outlook. With more consumer spending and business investment, this ultimately helps address our unemployment issues. Of course, the Federal Budget deficit remains a challenge, but the Obama administration has committed to a deficit reduction without undermining the economic recovery. “As we look ahead, President Obama has reiterated his commitment toward helping American business grow and prosper, to restoring economic superiority to the nations' people and it’s going to be, as the President called it, ‘built to last’.”

ON THE U.S. FOCUS TOWARDS THE ASIA-PACIFIC…“You all may be well aware that Genting has announced another U.S. investment … an 87-acre plot on the Las Vegas strip and plans to build a Resorts World Las Vegas. It’s great to see a Malaysian enterprise taking up this superb opportunity. “It is also a very opportune time. I want to add that President Obama recognises that prosperity at home is inevitably tied to prosperity globally – and stability globally.


This Radio 4 announcer gets candid about the realities of life and how to get your mojo going on any given day.Photography Felina Hung/ Show Up Picture

NIGEL GREEN

BEST ADVICEOne person’s opinion of you does not have to become your reality.Down with dream crushers! How many ideas and dreams have gone to their graves forever unsung and unrealised because someone said it could not be done or that “you aren’t the kind of person who can”.

BEST INSPIRATIONMy son, Mikael Green, is my best inspiration.

BEST ATTITUDEThe “can’t be bothered” attitude.Many of us let our lives be governed by the way everyone else says it ought to be. Aren’t we all unique? Just because you say I don’t look good in black, should I dress in white? Don’t be bothered…and really, don’t be bothered.

BEST PRACTICESmiling before going on air.It works on radio and it also works with phone calls. Not enough of it going around by the sound of many voices these days.

BEST SPONTANEOUS DECISIONIt’s like playing Monopoly. Buy! Buy! Buy!I’m a sucker for Music CDs. What I see, I want to buy! I once decided to buy two Pink Floyd collectors’ editions the very second the shop owner said there were only two left. I wanted two sets in case one got scratched or worn out. Over time, someone bought my extra set for five times the original because ‘he couldn’t find it anywhere ‘.

BEST MISTAKEMy Birth…Since day one it’s been mistakes galore. I have to be fair to all my mistakes as too many earned ‘the best’ title. First, mum and the nurses thought I’d be a girl so they were ready for “Michelle”. Then, unfortunately for their set

plans, there arrived… me! Being Catholic, one of the nuns gave my mum a statue of St. Gerard to hold as he was the patron Saint of Births. As soon as I was born, his head broke off! And, as some kind of gesture of thanksgiving, that’s how I got my middle name. And then I went on to make mistake after mistake. These days, I’m looking forward to a life full of it as it doesn’t matter about the falling down but it’s the getting back up!

BEST WAY TO TAME BUTTERFLIESBreathing helps but don’t gettoo relaxed.Then again, don’t tame them completely as butterflies are good for you as they keep you on your toes and from getting too comfortable.

BEST THRILLThe element of surprise.Pretending I don’t know I’m in this issueand turning the pages to a “Hey! That’sme!” feeling.

BEST MOOD BOOSTIt is essential to do this always.

BEST HIDDEN TALENT>>>The ability to shut up. Many of us just don’t know when to shut up. Daddy always told me, “Stand up, speak up and then…shut up”! It’s a hidden talent. m

BEST INSTANT ZEN>>>

GARDENING IS GREAT. THE GREEN IN MY NAME MUST HAVE BEEN AN EPIPHANY

OF SORTS.

BEST FORSUCCESSINSPIRATION


LIGHT & EASY

Sporty and sleek, the most diminutive member of the Audi Q-series with its sharp edged frame, wedge shaped xenon plus headlights and elegant

stance feels more like a coupe than an SUV. But that’s where the appeal of the Q3 lies; its dynamic crossover appeal truly bridges the gap for drivers looking for a luxury SUV with car-like properties minus the huge dent to the wallet. Priced from RM258,000, the Q3 is affordable and, more importantly, offers a lot for its asking price. The Q3 comes with a dynamic lightweight design with a mixed usage of metals such as aluminium in its bonnet and tailgate, and ultra-

high-strength steel in the passenger department to offer a perfect balance of weight without compromising safety. Reportedly weighing less than 1500 kilos, the compact SUV also leads the pack in aerodynamics with a drag coefficient of just 0.3CD, which is remarkable for a vehicle in its class. And these two properties undoubtedly go a long way in ensuring the Q3 is not left wanting when put through its paces on the open road. Under the hood of the car lies a 2.0 TFSI engine, which is equipped with direct fuel injection, turbo-charging, start-stop system and energy recovery system. The engine is

BEST FORSUCCESSMOTORING

Meet the crème of the crop of the premium compact SUV market—the Audi Q3. By Richard Augustin

SPEC CHECK AUDI Q3 2.0 TFSI QUATTRO ENGINE 4-cylinders in-line 16-valve DOHC Turbocharged CAPACITY 1984 cc TRANSMISSION 7-speed (A) S-Tronic POWER170bhp@4300-6200rpm TORQUE280 Nm@1700-4200rpm 0-100 KM/H 7.8 seconds TOP SPEED212 km/h FUEL CONSUMPTION7.7l/100km CO2 EMISSIONS179 g/kmwww.audi.com.my

paired with a smooth as silk 7-speed S tronic transmission and quattro-all wheel drive. Capable of 170 horses with 280 NM of torque, the Q3 can go from standing start to 100km/h in a shade under eight seconds. Fuel economy is rated at just 7.7L/100km, which is outstanding for a vehicle in its class. Despite its car like demeanour, the Q3 rises to the challenge of being a decent light off roader, when the situation calls for it. That’s predominantly down to the design of the car which incorporates a raised ride height of 170mm along with a robust multi-link front and rear suspension, which work perfectly to conquer ruffled terrains. Additionally, the SUV also boasts a sophisticated Electronic Stability Program with electronic differential lock, which effectively regulates torque distribution that instils adequate grip and control when required. Although equipped to go off the beaten path, the Q3’s status as a compact luxury SUV remains intact. Inside, the vehicle seats five comfortably with a cargo area that offers

460-litres (1365-litres with the rear seats folded flat). Build quality is as you’d expect from a lux-continental with high quality fittings, an attractive and functional dashboard with clear and intuitive controls. The Q3 is also generously equipped with modern cabin refinements such as a 10-speaker audio system that sports a 6.5-inch TFT colour display, CD changer and voice control. Euromobil is currently pricing the Audi Q3 2.0 TFSI Quattro at RM258, 000 OTR without insurance and the sportier and athletic S line exterior package for an additional RM21, 000. Additional options also include a panoramic glass roof, LED interior lighting package and BOSE Surround Sound system for discerning drivers looking for a more premium ride. With attractive features, a versatile yet comfortable ride and highly respected badge, the Audi Q3 is definitely worth a look but don’t take our word for it, book a test drive at your nearest Euromobil showroom and judge for yourself. It certainly won’t disappoint. m


estled up in northern Italy is Turin (Torino in Italian) a city located on the left bank of the Po River and surrounded by the western

Alpine arch. The city has a rich history and is also a major business and cultural centre. Turin is well known for its baroque, neo-classical, and Art Nouveau architecture as well as its numerous art galleries, restaurants, churches, palaces, opera houses, parks, gardens and museums. Many of the city's public squares,

N castles, gardens and elegant palazzos were built in the 16th and 18th century as part of the urban expansion. Turin was once the capital of Italy but only held this distinctive position from 1860 to 1864. With a week away from spring season it was still very cold (2�°C to 5�°C) with occasional snow fall and cold winds. My base was Zurich and my advice to anyone wanting to visit Europe, late winter is not too bad as far as the snowy scenery is concerned, cold

Italy is a country with several popular tourist destinations thanks to its ancient architecture, churches, landscape, food and people. Come vacation time hordes of people descend upon the established tourist destinations like Rome, Venice and Florence. By Suguna Rethinasamy

BENVENUTI A TORINO (WELCOME TO TURIN)

not withstanding of course. The 7 hours train journey from Zurich to Turin is a must (including a 1.5 hours stop at the Milan train station) as it is not just a means to get you from one point to another. Get your cameras ready as you will be richly rewarded by lush sceneries of snow-capped mountains, lakes, fir trees, snow covered houses not unlike the yearly Christmas cards we find in stores. Turin is a place of rich history, palaces, castles, monuments, museums, parks and for the car aficionados this is where FIAT (Fabbrica Italiana Automobili Torino) was born. It is also the place of generous, hospitable people.

PALAZZINA DI CACCIA OF STUPINIGI (PALACE STUPINIGI)Our first stop was at Palazzina di caccia of Stupinigi located in Stupinigi, a suburb of the town Nichelino, Turin. Palazzina di caccia of Stupinigi means 'the Hunting residence of Stupinigi' in Italian, is one of the residences of the Royal House of Savoy. Built as a royal hunting lodge in the early 18th century it is symbolised by the bronze stag perched at the summit of the stepped roof of its central dome. Stupinigi was also used for celebrations and

BEST FORSUCCESSVACATION

dynastic weddings by members of the House of Savoy. These days the palace of Stupinigi is a museum of the arts and furnishings. The woods and agricultural land surrounding Stupinigi have been preserved for the past 20 years as the Parco Naturale di Stupinigi. Visitors can admire some rare plant species and interesting wildlife such as weasels, foxes, dormouse, hares, squirrels and others.

CITY CENTRE MUSIO EGIZIO DI TORINO (EGYPTIAN MUSEUM OF TURIN)Considered as the earliest Egyptian collection outside of Cairo, this fascinating ancient civilisation period ranging more than 4000 years is accessible to everyone. The museum which houses the world’s second largest collection of Egyptian antiquities contains enough materials that speak volumes about the creativity and artistic advances beyond what we would imagine possible of that era. The museum provides an opulent overview of sacred rituals, objects connected with cults, mummification and a rich pantheon of deities including Anubis, Isis, Amon-Ra and

Palazzo Madama Royal Palace in Piazza Castello Turin Italy

From left: Medieval Castle & Village, Ruins of Roman Porta Palatina and Funicular in the

town center Piedmont


BOOKREVIEW

FROM SMART TO WISEActing and leading with wisdom with the functional smart leader and the business smart leader.By Prasad Kaipa and Navi Radjou

e all tend to have a perspective on

life that is relatively narrow, shaped by

our predispositions, assumptions, and experiences. Psychologists call this phenomenon our perceptual filter – think of it as a pair of tinted glasses – and describe the ways it conditions how we organise and interpret the meaning of everything we experience in our environment. The longer you wear your perceptual filter without challenging it or finding a vantage point outside it, the more you tend to get attached to your limited perspective. Worse, you end up seeing only what you want to

see and rarely observe anything that is outside your zone of interest. You develop a well-worn autopilot mode and, unknowingly, a tunnel vision: You see only a limited portion of the whole spectrum of smart leadership possibilities and positive human endeavour. Generally business smart leaders, many of them known for their intensity and risk taking, tend to perceive the world through a set of filters that, for ease of identification, we’ll call “red.” Business smart leaders thus tend to operate in what we designate the red zone at one end of a metaphorical spectrum of leadership style and skill, where the emphasis is on characteristics like drive, vision, and risk taking. At the

W

BOOKREVIEW

other end of our metaphorical spectrum are functional smart leaders. Intensely focused on and competent in their particular area of technical or business expertise, they tend to wear what we call a blue set of filters, which make them see the world in terms of their own narrow focus. Hence, they are at ease while operating within a blue zone, where the emphasis is on qualities like groundedness, execution excellence and deep expertise. What is highly visible and exciting to leaders operating in the red zone is often practically invisible or unappealing to those operating in the blue zone, and vice versa. Both kinds of smart leaders see what they are conditioned to see, in both cases narrowing their experience of a wider spectrum of reality. It’s not just senior leaders – or people in the business field alone – who wear these filters. We all wear them – whether we are teachers, architects, husbandS, mothers, and whether we work in non-profit organisations, the government, or are in business. These filters do colour our perspective and shape our motivations, decisions and actions. To actually see the world as it is, not as we are used to seeing it, we first need

to become aware of and then set aside our perceptual filters. It means stepping out of the zone that we know so well and in which we feel capable and comfortable. When we appreciate and embrace the objective world as it is – in its full range of colours, so to speak – and bridge the gap between our subjective reality and the rest of the world, we become capable of wisdom. Wearing these red or blue glasses all the time hurts us in another way: It prevents us from incorporating certain qualities like prudence, judgment, humility, ethics, and the common good, vitally important when we widen our focus to include the whole spectrum of leadership potential. Many smart leaders have an intellectual understanding of – and an intuitive appreciation for – such qualities, but since they can’t discern them in relation to their leadership privileges and duties, they don’t incorporate them into their role. A leader who removes these filters and experiences the full spectrum becomes highly aware of the gaps between intentions and actual behaviours – so much so that values and ethics, which may have been less tangible before, become the cornerstone of the leadership approach. Gates, for instance, was known for his intensely competitive personality while running Microsoft: You could say that his filters were truly red. Yet, after going through the antitrust trial, Gates realised that he was seeing the world differently from the American public, Department of Justice, or judges, and that understanding led to reflection and introspection, which helped him find a larger purpose: Using his smartness for the betterment of humanity. By creating the Bill & Melinda Gates Foundation and taking an active role in it, Gates gradually became aware of his red filters and was able to consciously remove them to gain a larger perspective on how exactly he could best contribute to the world. In the process, he evolved from a smart leader to a wise leader; he didn’t lose or change his essential business smarts, but he became able to deploy his gifts mindfully across a wide range of situations.

IT’S NOT JUST SENIOR LEADERS – OR PEOPLE IN THE BUSINESS FIELD ALONE – WHO WEAR THESE FILTERS. WE ALL

WEAR THEM – WHETHER WE ARE TEACHERS, ARCHITECTS, HUSBANDS, MOTHERS, AND WHETHER WE WORK IN NON-PROFIT ORGANISATIONS, THE GOVERNMENT, OR ARE IN BUSINESS.

THESE FILTERS DO COLOUR OUR PERSPECTIVE AND SHAPE

OUR MOTIVATIONS, DECISIONSAND ACTIONS.


BOOKREVIEW

F rom Ponzi schemes to the credit crisis to the real estate bubble, the financial industry seems to have lost its way on the road to riches. As private greed

continues to undermine the public good, one might wonder what ever happened to business ethics. And how can we reform the global financial system to benefit everyone,

rather than just the very lucky few? In The End of Ethics and A Way Back, the bestselling author of Doing Virtuous Business teams up with attorney and Yale University Postdoctoral Fellow, Jordan Mamorsky, to examine the most recent failures of business virtue, prudence, and governance – from Bernie Madoff to Jon Corzine and MF Global – before offering a

THE END OF ETHICS AND A WAY BACKHow To Fix A Fundamentally Broken Global Financial SystemBy Theodore Roosevelt Malloch and Jordan D. Mamorsky

set of structural and holistic solutions for our current ethical crisis in global finance. In the aftermath of the worst financial crisis since the Great Depression, there has not been a work that comprehensively addresses the systemic root causes of a global recession that has had a profound domino effect, including worldwide public unrest, grassroots political movements, Dodd–Frank reforms, government agency audits, and general disgust with Wall Street corporate excess. The groundswell of public anger against the perceived evils on Wall Street and the financial markets has been extraordinary. Not since the Vietnam War has the United States rapidly mobilised behind a cause in such a passionate manner. Between the conservative Tea Party movement and the left-leaning Occupy Wall Street protests, “Main Street” has found a convenient scapegoat for all that ails the US economy and society as a whole. Is it really right to blame only those Wall Street “criminals”? What is structurally wrong with our entire system, culture, and ethical notions as a society? Has it lost its original moorings and morphed into managerial or crony capitalism where managers can routinely loot their firms without reprisal or prosecution?Defects in our societal moral fabric have produced financial swindlers, perhaps more evident than ever before. For example, Bernie Madoff and Tom Petters stole billions of dollars from everyday Americans as if it was standard business process to do so. CEOs such as Jon Corzine, Jimmy Cayne, and Dick Fuld presided over the demise of

proud international banking institutions. They allowed drug like addictions to boom or bust synthetic derivatives to marginalise risk management procedures and ultimately result in a massive overdose: The very destruction of their companies. Others, such as Tyco CEO Dennis Kozlowski and WorldCom CEO Bernie Ebbers, were so tragically obsessed with retaining power and keeping their gravy train of profits moving that they lied to their investors and markets with inflated financial statements. These collapses, scandals, and crimes demonstrate an ethical decay never seen before in global history. “Main Street” expects its CEOs, Fortune 500 companies, and private equity firms to hit “home runs” on a daily basis. Unfortunately, no matter how much quantitative acumen and market awareness an investment manager may retain, no Wall Street all-star can consistently hit the ball over the fence for investors and shareholders. Sometimes, they strike out. Inevitable losses are part and parcel of a capitalist economy. However, to appease investors and shareholders, executives have turned to the proverbial performance-enhancing drugs: What we will call economic vice. Economic vice produces artificial home runs for shareholders and creates unrealistic market expectations. The saturation of economic vice in our culture is why this book is titled The End of Ethics. On a systemic level, the allure of vice has captured the human spirit. On Wall Street, traders concoct complex structured credit derivative products with the sole goal of making excess cash to increase the short-term bottom line. On Main Street, investors clamour for enhanced returns to fuel a continuing addiction to real and personal credit. Prior to the real estate bubble, there was neither a Tea Party movement nor an Occupy Wall Street protest capturing the eye of cable and network news – only homeowners who signed mortgages they could not afford. The failure of citizens and investors to demonstrate accountability through

BEST PRACTICES, DOING THE RIGHT THING, OR BUILDING LASTING BONDS OF TRUST

HAVE BECOME REDUCED TO AN IDEALISTIC GOAL, NOT THE

ACTUAL REALITY.

Title : The End of Ethics and A Way Back: How To Fix A Fundamentally Broken Global Financial SystemAuthor : Theodore Roosevelt Malloch, Jordan D. Mamorsky ISBN : 978-1-118-55017-5Pages : 256 pagesPub by : Wiley; March 2013Price : MYR159.80

management 96

► C H A I R M A N ' S V I E W ◄

COURAGE IS NEEDED TO NAVIGATE A SECURE LANDING

If we reflect on the condition of the world over recent years, we may come to the conclusion that the world is in crisis. There is no denial of this state of affairs. Physical

catastrophes aside, on the economic front too, the world is experiencing unprecedented uncertainties. Coupled with the financial and fiscal crisis, people in the affected areas such as Japan, Europe and the US are facing debt problems and social distress. This downtrend across the globe is affecting other developed and developing nations, without exception. Therefore, the naysayers with their gloom and doom outlook are painting pessimistic views and this attitude is prompting a few to claim that the end of the world is near. Such views, one of which was the Mayan prediction, we know, are false. The truth is that the physical world and the economic spheres are facing new or changed realities. What was once considered normal is no longer normal. And the earlier parameters for decision making and the risks associated with each parameter are no longer valid.

Instead of perceiving these changed variables as insurmountable uncertainties, decision makers, especially business and corporate leaders, have to accept them with a changed mindset. They have to identify and confront the new risks under changing circumstances. It is important for companies and even countries, to put in place a risk management framework that will help mitigate the negative impact of the uncertainties that seem to prevail rather than move away like a passing cloud. Such a scenario has given rise to the notion of a new normal. This realisation stresses the fact that what was once considered a given stable situation is no longer possible. A return to the balance or equilibrium of the past is impossible and a new normal under changing circumstances becomes imperative. Holding on to old ways cannot contribute towards the sustainability of the business. Leadership, and from a business perspective, entrepreneurship, is all about taking risks – calculated risks. Even when the environment is hostile, there are opportunities. These opportunities can be seized only with better risk analysis and improved risk management. Fear about new ventures will destroy confidence. On the other hand, a courageous attitude and approach can bring in higher rewards. This is a quality that determines a true leader. Such courage, within a new normal, is definitely needed to navigate a company, organisation or country, to a more secure landing. m

By Datuk Seri Mohamed Iqbal

THE TRUTH IS THAT THE PHYSICAL WORLD AND THE ECONOMIC SPHERES ARE FACING NEW OR

CHANGED REALITIES. WHAT WAS ONCE CONSIDERED NORMAL IS

NO LONGER NORMAL.

The notion of a new normal calls for a courageous attitude and approach to bring in higher rewards.

Ava i l ab l e a t a l l ma jor books tore s , s e l ec ted Car re four & Tesco Malays i a

D i s t r i b u t e d b y M P H D i s t r i b u t o r s S d n B h d

ISBN 978-967-415-806-4 (English) / ISBN 978-967-115-710-7 (Bahasa Malaysia) /ISBN 978-967-115-711-4 (Chinese) • RM19.90 each

SYED MOKHTAR ALBUKHARY a b i o g r a p h y

Syed Mokhtar Albukhary is one of the most well-known tycoons in Malaysia. Yet, very little is known about the man. �is biography, which is based on exclusive interviews and research by the author, offers glimpses of Syed Mokhtar’s childhood and family life that imbued in him the qualities that define what he is today.

A beneficiary of the New Economic Policy (NEP), the government’s affirmative action programme, Syed Mokhtar made good use of the opportunities that the policy made available to bumiputera entrepreneurs. He refused to adopt the “Ali-Baba” approach of doing business with successful Chinese traders that would relegate him to the role of passive investor or rentier. Instead, he insisted on learning the ropes and became fully involved in growing the businesses that he had acquired. �is toughened him to weather hard times and emerge as one of the biggest names in Malaysia’s corporate landscape today.

Also available in Bahasa Malaysia and Chinese

management - MIM · Boon Siew Sdn. Bhd. group of companies by his late father-in-law, Tan Sri Loh...

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Transcript of management - MIM · Boon Siew Sdn. Bhd. group of companies by his late father-in-law, Tan Sri Loh...