MAKING SUCCESSION PLAN WORK

I read an article recently published, how Dr. M created the Vision 2020 and he is the destroyer to the plan.

http://www.thestar.com.my/news/nation/2016/02/21/musa-hitam-dr-m-is-creator-and-destroyer-of-vision-2020/

I will let this record just stand as there are a lot of ideas, opinions and people who would want to comment on the subject matter.

Myself, I had been involved in several succession plans for family businesses. Instead let me offer what I think is useful to make succession plan work.

First of all, we are not immortal.

The word, "immortal" does not mean we cannot die. It means it will take extraordinary period for the person to expire. Be it, 200-500-9,000 years old. Please don't expect us to be cemented, with our eyes moving around, when our body decayed.

Second, succession is a form of open communication.

Parents love to see their sons and daughters to be as they are or better than them. They prefer their own children to inherit the plan than outsiders.

Stop that.

It is better to discuss out openly with the children what they want to be, how they want to be and see how the plan - can be succeeded. The children too must have that skill, capability and abilities to inherit the plan. The main thing is, the plan must be bought - 100% or none at all.

At times, other than children can do it better and they are better inheritors.

McKinsey & Co. is the world's number 1 - professional firm, not because of McKinsey who was a very fine, educated and intelligent man but because he treated people right, and a group of his staff bought the company and retained the name - and made it as they had envisioned.

Third, start early.

Train up successors early. Teach them how to fish, cook char keow tiau etc.

Examine from time to time to see if they are passionate about what they are doing and not doing for the sake of being asked to do something. If they are not interested or don't have the knack in being you, try Plan B and who knows over time, the passion of doing what you do for living, attracts them.

Timing is important.

Fourth, respect.

Stop puppetting your potential successors. They are not your personal assistants, your "mini-me"s, your yes-men or -women. They have their own pride and personalities.

Also they need not be in your image.

Already the new CEO of Microsoft was said to have surpass Bill Gates in terms of achievement. Though a lot of analysts and shareholders are willing to give him more years to make some mistakes and not expecting perfection, but they are happy currently.

"Satya Narayana Nadella is an India-born American business executive. He is the current chief executive officer of Microsoft. He was appointed as CEO on 4 February 2014, succeeding Steve Ballmer."

http://money.cnn.com/2015/12/01/investing/microsoft-stock-satya-nadella-cloud/

Last - above all else...

The Agreement. You must have absolute agreement, not a trial, not a test, maybe it will work, it will not work.

An original plan need not be a "dead" plan. It can be adjusted to suit all parties, the different generation and ideas. A plan that worked 20 years ago, may not work today and therefore improvements have to be made to the plan. A goal can be achieved timely if the line of successors are very clear on objective and delivery. Unfortunately no one can think alike often - therefore changes in successors are choice-less.

The main thing is getting the agreement first, before passing the torch. Make sure there are witnesses.

Should the other back on his/her words, then its ok- move on. Find something else that will keep you happy.

You've done your best.

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If you wish to add ideas here, email us at mienspg@gmail.com.

The MANCHUNIAN THEORY

The best time to do reflection, is the Sundays. Its also the day where Football teams battle it out to guts, cups and glory.

My dad, he sticks through thick and thin for Tottentam until today. Which makes no sense - as one time, they were stuck at being no. 8th team for most of the time. Me, I'm always for the ol' swashbuckling type of Manchester United - the Dream Team, that once nearly got wiped out entirely due to an off-field incident (air disaster) and rose to fight another day, another time.

Once, I was called a "plastic fan". Realising its a generic term for those were joining in late - I am not a glory-seeker.

One shouldn't buy instant successes. For a very, short limited time, yes but it will not augur well and its way too expensive.

So did LvG do well? How about comparing LvG vs. Mourinho, today and not yesterday. Did Welbeck and Falcao do well? Or did we offload the "right" people?

Liverpool, Chelsea, Manchester City and Manchester United had been changing their key management. Everyone loves winners - the question is at what expense.

I rather stay root for a Manager that will build successes and continuing successes in years to come.

HOW MIENS PREDICTIONS WORKED

Daisy Kee​, Dennis Prem Kumar Chandran​

The talk provided @ Intel in exactly 5 years ago, and culmination to predicting on the downfall of Jose with 20% respondents did not know who Jose is.

Over his two spells at Stamford Bridge, he has won 140 of his 212 matches and has the best points-per-match ratio of any manager to have taken charge of at least 15 fixtures (2.19 points per match).

Now with the lowest at 0.94 per match despite being a champion last year with the best players with little or no injuries.

http://www.premierleague.com/en-gb/news/news/2015-16/dec/171215-chelsea-part-company-with-manager-jose-mourinho.html

https://gyazo.com/8069063a9af52f5de1ee05176a264aee

AIM

                                                           

To acquire an understanding of your position at work, to hold your fort and the possible methods of winning through tough battles in life.

	SPECIFIC  OBJECTIVES

 

At the end of the one day seminar the participants will be able to

                  Compare through sharing of common failures and problems in life.

                  Learn the virtues of patience and reducing work stress.

                  Practice strategies to be an effective role model at work.

This programme is tailor-made for the groups of staff in need of total new approach in dealing with life at work and off-work who have been identified by the management of Intel.

Erasmus Koay Khhin Lung is a strategy adviser, quality consultant and corporate trainer for the business and social organizations. He has established MIENS in 1999. In 2006, he appeared live in a TV2’s Hello On Two touching on Quality System in Malaysia. He had lectured on Organizational Behavior and Business Economics at PTPL College, actively promotes the in-house “Retail Management Talk Series” and co-authors a leadership book together with USM, School of Management senior lecturers. He was the National Sponsorship Director of the JCI Creative Young Entrepreneur Award (2007). and the Chairman of the 50^th Golden Anniversary Dinner of ANZGAM (2008). He served and represented some 20-odd organizations.

Dr. Daisy Kee Mui Heng is a senior lecturer of management at University of Science, Malaysia. Her areas of interests are in Human Resource Management, Organisational Behaviour, Gender and Leadership. Her current program of research focuses on HRM and LMX. She holds a PhD in Business and Management from International Graduate School of Business, University of South Australia. She was the Secretary of Management Case Study Journal, Australia (2004-2006). She has been voted one of the Most Outstanding Malaysian university students in South Australia by former South Australia Governor Sir Eric Neal (2006). She earned her MBA from School of Management, USM. She was awarded Dean’s List for being one of the top MBA students (2003).

GO HOME, AND THINK ABOUT IT.

FOR MIENS AND BDSMCO. WEBSITES.

GO HOME, AND THINK ABOUT IT.

To a good question by Azu, has internet business (IMVU or otherwise) work for you?

To be very honest, business whether in IMVU, internet or otherwise – hasn’t been really kind to me. There were years where business were going up but never really been what I would’ve wanted. Those years, we call it – learning years and whatever that went out, we called it learning fees. That years, had gone by very quickly.

In terms of internet doing-business on the whole, there are more losses compared to gain in terms of financial resources, time and people. Seldom will I work with the same people whom I achieved abject results. Reason being, we have been there and it had been painful existence.

So, why BDSMCo. and what sort of “achievement” or “outcome” do you wish for?

BDSMCo. had always been part of the good plan within MIENS (Mien Universal Services). To charge at reasonable figure, in some cases – premium for excellent ideas with people that can make things work. Out of the ordinary.

For example,

I used potted plants as an idea for security deterrent instead of just hidden cameras in a jewellery shop. It’s simple, aesthetic and nondescript. By understanding through general observation of the flow and motion of human, speed and common-sense, we look towards solutions that can be long-term, easy to maintain and workable.

The achievements and outcomes I hope to achieve is putting the right people, at the right place for the right fee. And getting the right results that we all want.

For the new BDSMCo. people.

There are three kinds of failures, to work.

1.       Orientation.

2.       Commitment;

3.       Discipline;

OCD – Obsessive-Compulsive Disorder

I have worked in KFC, Citicorp Nominees, 3 small-medium size accounting firms, owned an incorporated business which eventually I took over the 51% shares, own my own firm and worked as a General Manager for a Finnish IT group of companies.

Staff are happy, staff are unhappy, staff couldn’t care less, people that care.

Because staff is staff – be it two, four, twenty or two hundred. Humans are emotional animals, humans are political animals (Aristotle) and humans have needs and wants. But when a person who leads 2 to 200, have to think for the lives of more than himself or herself instead of his or her own or his or her own family, don’t lead, be a follower or go alone. Point here: more people, less work, less thinking. Else - automation.

For reasons, very rarely did my ex-bosses invite my ex-colleagues or me to their homes. They were bosses. One day, out of my 20 over NGOs, I invited a group of rich men to my home for a meeting – they were very uncomfortable siting almost 10 of them in cluster at a small hall with a flipchart. Simple, you want this and that, and this is what I have to start with. Modest place, but if my place is uncomfortable compared to the 2,000 to 12,000 sq. ft. of homes they each have at prime location, think of the less fortunate ones.

1.       Orientation

The people who usually works with me, are smart arses. Because I don’t need someone who kowtow to me just because I pay their salaries and taxes. I want to know – what makes things work and what make things fail, and where they were at each point – or – do I need to handle it myself.

Secondly, just because I give allowances to be yourself, respect comes two-ways. There’s no reason to be obnoxious or rude about things just to get your message across. Other people, like yourself – have brains.

Finally, usually answers come in threes, not one, not two. If you can only give ONE answer, why do anyone need a consultant? People need alternatives. Choose 1, why, choose 2, why and choose 3, why.

2.       Commitment

Stop making up excuses for yourselves.

Stop pointing fingers at other people’s weaknesses, to deflect your own critical failures.

This friend of mine, is an intelligent man. Was young and brash. No longer young and still brash. Honestly, when he has money, he knew what to do with them. When he had nothing, he proudly announced to the whole wide world. Twice a divorcee and they say third time, a charm. The only think I can say is, he is not me.

Someone – a man or a woman, may not want anything of you when you don’t have the means. They want the best for you. No worries, no sickness, money etc. They will even split up with you, so that you can have your piece of mind. Most of all, they might not want things outright, they do wish to be given “something”, “anything” – that’s of value and can be treasured, physically and mentally.

You have emo-, I have emo- everyone has emo-. Question, when one does has emo- for their work, office and people who counts on them, today and in future. When the f*** is that? As and when? One has the mood for it? Then, there’s one emo- for that – its call, the way out.

from: http://poemaboutlife.com/wp-content/uploads/2015/03/poem-about-life-300x169.jpg

3.       Discipline

No, I don’t have it too.

The only discipline I do have, is talk business, do business and think business.

My ex-wife used to say, you are indeed different from others. In the Maslow Hierarchy of Needs – you start at the top – Self Actualisation with a silver spoon. Whereas the whole world starts from the bottom, surviving and basic needs. Honestly, I did not start with a silver spoon though granted I’m luckier than a lot of people.

I started by helping others and not myself. I cannot say it’s wrong. But at the back of my mind, my ex-wife’s statement is correct: one should help themselves first, before others. Or shouldn’t it? That, I’m afraid – I am still discovering for myself. This is my personal journey. It has not ended.

Where are you in your own current journey? I do not know, you will have to think for yourself. And whether we will cross-path and do well together? I do not know, I intend to but the rest, is up to you.

Do your own homework and don’t expect others to do it for you.

Tough Year for SMEs this 2015

A plate of curry noodle costs RM 3.50 in Penang and that is already considered "expensive" by local standard. Now imagine, in 24 hours, it had gone up to RM 5.00, because that's what just happened.

"SMEs are facing rising costs on several fronts. They include the government's subsidy rationalisation programmes, TNB's tariff hike and even, higher, sugar prices. SMEs have also had to meet minimum wage requirements. All these have contributed to increased costs. We saw the depreciation of the ringgit in 2Q2014." are some of the explanations offered by SME Association of Malaysia National Presient Teh Kee Sin as reported in The Edge, June 8.2015.

Along with other factors are the Goods and Services Tax, which came into force on April 1, and it is expected to be tough on the 650,000 SMEs in Malaysia.

Already large organisations are coming out in numbers to ask the regulators to ease up on SMEs given that over-regulation can kill the goose that lays the golden egg. E-Commerce for example in South East Asia only made up 1% of total retail, unlike 8% in China and over 10% in US and UK economies.

What is also severely lacking include the human capital development that includes retention rate and generation gap trends.

"SMEs are generally reluctant to send their employees for training due to fear of disruption in work activity and staff pinching by other firms. They also face difficulty in attracting and retaining workers due to perceived low remunerations and non-competitive rewards and benefits," says SME Corp Malaysia CEO Datuk Hafsah Hashim.

The good news are our early investigation into Enterprise 50 companies stretching since 1998 to present day revealed that though almost 20% to 33% companies were no longer in existent, those that are still around are making good of their revenues and organisational growth. 

Nevertheless we are keen to study on net profit and positive cash flows to be able to understand more of survival rate in volatile market conditions.

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MIENS is currently assisting with mergers and acquisitions, towards IPO and also following the regularisation of Crowd-fundings.

The Beginning of Religious Man, a new Migrant People?

Of recent I have been receiving questions from friends within the country and in overseas on dealing with multiculturalism. It is a chapter of studies itself at the university level and in many aspects of education.We have to study about other races. (Although I cannot recall whether it is a compulsory study but management studies were compulsory for 1st year)

Since 2008 many nations were economically deprived of their source of income. Some inhabitants chose to change their jobs or migrate to a new land.

There are 232 million migrant workers worldwide and therefore logically we shouldn't have workers or employees shortage.1. That is not the case. What we are short of, are skilled and knowledgeable workers.

To compound business interest on global scale such as China and South Korea, the vast movements from African continents, Middle East and some East Asia basin due to war-torn nations to Australiasia, many of these displaced people brought along their systems of believes. 

Most employers are quite responsible and adaptive towards the changes, but not all are fast enough, and on larger scale, cool-headed to deal with the changes - such as 300-400 employees of two factories clashing over misunderstanding. This then create an atmosphere of distrust among the residences and the factory management.

New Surau just built on extended factory - Kedah

3 Quick Ways to manage new migrant labours.

1. Respect.

Always treat the workers with reasonable respect on the practical side with overall security in mind. For example, would one allow Voodoo-shamans? What about setting up religious halls? Normally there will be the appropriate Government agency to provide advice to setting up community villages.

If the decision is to be setup, then the management will do well to steer away from commenting further, that such a decision- is a business loss. Consider this as an opportunity as part of Corporate Social Responsibility (CSR) and Global Citizenry.

2. Recognise migrant labour rights.

International policies may not work well at local climate. They are for protecting workers rather than employers.

3. Education and Awareness.

Factory managers and supervisors have to recognise the types of leaderships in play. Those granted within the migrant community and that of the employers. One must find a balance to setup a leadership group that reduces chances of mis-communications.

Having some form of leadership and management education and awareness campaign would create a better glue to get people moving in one direction.

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And the  best way to get things started is to first, listen to the new migrants even if a translator is needed to be hired.

Visiting P. F. Drucker

Peter Ferdinand Drucker an Austrian-remade American management consultant, educator, and author, whose writings contributed to the philosophical and practical foundations of the modern business corporation 1, 

Drucker's credo, "Know Thy Time" are of little use to Generation Y aka "Millenials", that existed three (3) American generations above his; the Silent Generation that had fought in Korea and Vietnam, the Baby Boomers and the Generation X.

Drucker came from the so-called American's "The Greatest Generation" or the G.I. Generation that fought in World World 2, undoubtedly much of the larger contributions went to computer age, mechanization of air-crafts and ships which later on lead to the space exploration age.

He was not around to see or to predict what I would call, "The Beginning of the Religious Man", where migrants around the world would have much the impact on managing industrial-wide of workers.

Drucker rightly recommended, 

"A man should never be appointed to a managerial position if his vision focuses on people's weaknesses rather than on their strengths."

Sweat and soul, were the old Spartan way of life, The Greatest Generation time but not this time where Generation Y flexes their backbone with a yawn; where one need not figure how to change a plug-socket head when you can buy and replace a plug for 99 sen, to figure out how hand-phone works when they came in all shapes, sizes at an affordable price and how the Internet works, it just does!

DOTA, Cybercafe games are the in-thing, Alibaba is a stock giant, not 1,001 Arabian Nights and whether it makes profit or not, is not really the question, its popular (and seemed to be the only one viable to trade in this dour time)! Times have really changed and so are the mindset of the "labour market" where the Generations before trying so hard to protect only for labour to go on individualistic rampage.

But at the end, the World and the Individuals must recognise what Drucker had written and talked widely on:

Managing By Results.

All talks, no action, makes Jack and Jill - are over-excess necessity that any organisations should cut down on and getting the goal realized.

The World, Money and Racism

When Thomas Friedman wrote, The World Is Flat, he could've been predicting 2008 to 2014 onwards to 2016... that more of the upper middle level income are suddenly compressed to be middle or lower middle income.

What happens when a layer of middle - like middle managers had been removed.

What was originally, 60: 35: 5 became, 80:15:5? Transmigration of many people all over the world. It is no longer immigration but a social context issue where races and religions are no longer at their original base.

In much of the confusion, tolerance and acceptance, money is hard to come by and people are pushing for space and recognition. This then will lead to social disorder.

Every other day, authorities across the world, had to come up with clever solutions to pump into the communities; be good, be kind and take care, with the base understanding that people who are religious would have aided their causes by practising what they preach.

Is the world that fragmented? Are we a contributor of it? Or are we doing something about this?

https://www.youtube.com/watch?v=dfccrwUlROU

MIEN and Its Programs

MIEN has been coming up with its own programs to answer specific management issues.

Besides attracting interests for angel investors and companies that are seeking to join venture in projects, we have been looking into the specific needs in the area of food and beverages, retails, property developing, mobile apps and technology, energy-related and manufacturing.

The indulgence into thinking of the methodologies and first-time use ideas can only be assisted by knowing what others had done and doing it successfully.

For example, we have Membership Programs  created for particular industries. Memberships in truest sense, are no longer limited to certain industries such as Multi-level-Marketing or supermarkets. It has gone on to be applied in almost anything and everything that can be purchased in life.


The technique and the solutions of today and tomorrow are no longer simple.

How does one justify a RM 6 billion "investment" to be pumped into a newco which derived from an old track record and hope to make from it? Of course, there are ways to turnaround the organisation. There has to be a workable program that everyone huddle around it and make things work.

Cross-referencing Materials

Written down ideas vs. unconventional ideas

I am very into unconventional ideas. I won't call it Blue Ocean Strategy (BOS) or Thinking Outside the Box (TOB).

Unconventional ideas require 3 things (see, it is always about 3 things and you got to think what they are)

1. The understanding of basic fundamental of all things.

Like engineering and medicine, there needs to be cross-references, researches, recognition of risk management, the Upper and Lower Limits that needs to be identified, the human resources, the capital outlay and many other things that can turn the world upside down.

2. Observation and thinking.

BOS, TOB, MYOB (mind your own business) and jargons are good folder-names, where you can put all the things you are doing, into the coloured boxes.

The things I love about my MIEN Ultimatum crews are they are very much observant and into thinking. Sometimes, the solutions are right in front of us and other times, it is unexpected.

Just like the discovery of Penicillin and the vaccine to cure smallpox.

3. Trust and determination

There is always a movement to disregard ideas because they do not come from people who want to own them when they are not capable.

Ego, could be part of the answer. I would place, the intention to survive.

By adopting an idea or program, one runs the risk of promoting a mechanism, that will take away their jobs.

For example, would a doctor asked about a new Expert Systems that not only diagnose but can carry out micro-surgery? There is a chance he/she might not for fear of being replaced by automation (no, we haven't reach that stage yet).

Elsewhere, machines and procedures are replacing people - and the only way that these can be contested is either through the Labour Law office or to kill off the ideas before it can even take place.

There were cases, where middle management were removed from the decision-making but these are usually in family managed businesses. For better or worse of things.

The people of businesses must place trust into the change that it will take care of them had they in the first place, took care of the business.

Today, this has been what I have been up to and looking forward to doing things positively together with you.

Kind regards,
Erasmus

Hystory be Damned ... and we allow it

For the past one year, scores of Malaysians remained hysterically and emotionally gripped by events relating to people, policies and communal differences. We failed to see the woods out of the trees. The longer this goes on unchecked, Malaysians are selling themselves shorter and shorter over time.

For a fact, recently I wrote a 4-page letter to the MD of a veteran German car group besides offering my consulting services, chronic problems associating with his veteran and famous car brand, 4 hours kept waiting with no other main customers, on a simple oil and filter change for a car bought 9 months ago. Not only that my first 15,000km was invalidated by the brought-in at 10,000 km.

Casting that aside, I am invited to contribute a historical article for an institute in Penang. It bemuses me that in the wider context of discussions, historical means what is widely accepted by the community without having to charge emotions of what is in the total truth, but what is in the selected facts to share.Nevertheless I do agree that my article will lend support or finale to other eleven articles written before me of a common theme.

Finally, in the recent write-up and worldwide circulation of a Mamak Malaysian-born who set to open a restaurant in Twitter's HQ. Kudos to her when I read the headlines with a smile and sense of "Good on you, girl". Until I read the full article published by our local media and as well as foreign news. I am terribly shocked, to know my neighbours - the Mamak, as this fifth generation claimed to be the lower of caste in Malaysia and treated badly to the point that she was not accepted for higher studies with good results. She had also felt largely insulted that shes still being treated an Indian in her own country. Her story then went on to illustrate due to the lack of opportunities she left Malaysia at the age of 15, leaving behind her OrangUtan and a blind chicken and what-not of wonderful memories as she took on the bigger and better world bravely.

The Americans bought her enterprising story by the hook. But what failed to impress me, was our local media and general population who had read the same news, very happy for achievement - failed to challenge and authenticate her claims. Where in Penang or parts of Malaysia, can a poor person keep an endangered species at home? Therefore from here, I ask you, what kind of role-model are we allowing to permeate the minds of our children to understand and follow as life history?

I sincerely hope the source of information, the principal behind stories and the media will play their roles to ensure good value stories are properly researched, managed and ran before it hits to international circles and give us a red bleeding nose when facts come charging back at us, one day.

Thank you.

The End of Industrialisation for Penang?

In 2008, Penang ushered in its State Government made up of parties from Pakatan Rakyat. They had also successfully defended the State in 2013 to continue governing the Penang state.

Then comes the time for reporting on the sustainable growth in Penang and whether the economic outlook fared well since 2008.

Overall, for the majority of Penangites, they enjoy a time of professional governance.  Like advertised, competency, accountability and transparency had occurred at above the crust where the ordinary people can feel the changes.

But what about what is in the mantle of the State economy?

In the publication of Pilot Studies for a New Penang, circa 2009, there is a chapter 10 on Position Penang for Sustainable Growth by Nungsari A. Radhi and Hamdan A Majeed, where it claimed 50% of the world’s microprocessors are being produced by Penang. In their article, it questioned whether Penang is prepared for the next phase of change? This is backed by a survey conducted by Khazanah from a year (before their publication) that Penang firm’s activities have dramatically changed and no longer just manufacturing based. To conclude their short article as much as the opening and ending suggested, the change simply is not happening as quickly as it should and in fact has decelerated over the years compared to (new) growth cities. Therefore the learned ones, suggested to wing it and see what happens next.

Today July 2014, Datuk Redza Rafiq had reported the Northern Corridor Implementation Authority (NCIA) has attracted RM 6.7billion in foreign direct investments (FDIs) by the first half of 2014 with some 9,800 jobs created. He said, "We are confident of achieving the investment target of RM10bil this year with contributions coming from manufacturing, tourism, agriculture and logistics sectors.”. Reda went on to add in his report prepared for the NCIA 12th Council Meeting chaired by Prime Minister Datuk Seri Najib Tun Razak. NCIA has been looking at designing a completely new manufacturing ecosystem by venturing into new growth sectors like medical devices.

To be very honest, medical devices is not a new growth sector and in fact, it’s one of the areas that we are not capitalising fast enough and we also do not have the quality assurance means to do so at the industrial level in Penang.

Indeed, there are calls for the resignation of the Chief Minister, Lim Guan Eng on what is said as abysmal results as Penang dropped to 6^th place in terms of FDIs in the country.

The background of this statement was against National FDI the Economic Transformation Program (ETP) by Najib which reported a highest ever record for foreign direct investment of RM38.7bil last year, a 24% increase over 2012 and 3.9% higher than the last record of RM37.3bil achieved in 2011. I can only suppose that the detractors did not read much into International Trade and Industry (MITI) minister Datuk Seri Mustapa Mohamed’s claim on the contributions, “….all sectors of the economy registered increases in FDI inflows in 2013.” What detractors also failed to comment was the movement of RM over USD that contribute to the record in 2013.

So what is happening to Penang Industry and FDI?

It is the quiet change.

The world industries are now shifting, again. No longer has Business Processing Outsourcing (BPO) automatically gone to India when they have Romania and The Philippines (according to Dr Vinod Devanthas at an American IT MNC) as English-speaking countries. And despite all the human resources hiccups from 2010 until today, Intel insisted on filling up their biggest plant located in Vietnam and slowly closing off their plants elsewhere in the world. Penang and Malaysia industrial leaders, Government researchers are fully aware of these changes. At minimum, information technology research and advisory firms continue to provide positive indicators with the usual, read between the fine-lines.

So where does Penang future economic outline seemed to be heading? One proponent of economic ideas said that Penang being the largest UNESCO historical and heritage city should fully concentrate on its heritage development and creation of very liveable state and shift away from industries. Others had said that Penang will have to move higher up the value chain to create a new ecosystem management for value-chain in the business processing outsourcing.

                                       

Whichever the path is, it is definite that we are seeing to the end of industrialisation for Penang by 2015. It is noteworthy that GST came in at a same time, to latch onto most sectors but for those with the income of RM 500,000 or less.

In any case, evidently both the State and Federal Governments as has been since 2008, must cooperate now and not rivalling each other for the worse in preparation for the next General Election.

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http://www.mole.my/content/penang%E2%80%99s-fdi-free-fall-guan-eng-must-resign-gracefully-0
http://www.thestar.com.my/Business/Business-News/2014/02/14/Malaysia-receives-record-FDI-of-RM39bil-By-DAVID-TAN/
http://www.thanhniennews.com/business/intel-opens-biggest-ever-chip-plant-in-vietnam-14495.html

http://whc.unesco.org/en/list/1223

A Piece of Paper

Business in Malaysia especially starts with a piece of paper. It can be a Form A for SSM for registration of an enterprise or Borang 9 certification of incorporation of companies.

Then you start your business proper. Adhering to the local statutory and regulatory requirements of your nature of business. Doing what is necessary to see things being realized and objectively carried out.

Planning comes naturally – you plan daily and periodically. Business, marketing and financial plans are often what were used to be submitted for Grants or Loans.

Almost every business owner is a salesperson. Armed with a name-card with a telephone number and emails, the doers will plod the streets, into trade fairs, meetings with potential customers and gathering of friends. Then phone calls started to come in, customers started to place orders and then you have the business.

Ever so often business owners will tweak and turn but always with the same principle of beliefs in their system of business that it will work. There’s Vision and there’s the reality. We call this the Vision gap. Here is where you are and there’s where you had wanted to be.

As business expands, more and more people trust your business, it then boomed and at times gone bust when the risk factors were not well-identified. But your knowledge and experience on business keeps on expanding. Never leaving you far and at the flick of your thumb, you know what must be done. Hence, there’s always some form of Rule of Thumb especially for the professional business owners.

As we ourselves build documents, processes and systems from scratch and at time restructure them, submissions to government, tenders and presentation, we are mindful of the historical values of these organizations and the attachments of the owners who had built the business with sweat and blood.

But to grow, existing companies must shed their former skins like dragonflies do. 

They cannot continue to rely just on their Grade A builder status, the tons of certifications obtained and in some cases, the Bumiputera status to propel their existence; outward and onwards.

These companies must evolve based on existing needs, market demands and today’s competitors. Business owners should no longer operate the same, doing the same thing and making the same mistakes, over and over again despite the assurance of their systems in place.

Imagine 20 years from today, you the business owner is still handling that one piece of paper, for which it should have long left your table and someone else is looking into it. Then this shall not be a business but a process requiring urgent think-over. As for me, my passion happens to be admiring a piece of paper.

Erasmus KL Koay

High Income Nought

This shall be a 2-part write-up.

First part, shall express my own personal thought.

Second part, will go through 4-page article and provide my critique.

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For the first part, High Income Nought or "Zero High Income".

The very idea that a Company or a Government should bear most of cost for current Generation of Employees is downright insulting.

Previous generation of parents or single parent, would often encourage their child, children or kin to be better. Getting better jobs through higher education. Otherwise, the idea is to work hard and earn money if one cannot study.

"Don't be like us. Be better."

For that to happen, the family will encourage or enroll their child into various co-curriculum to unearth any secret talents. Go, be Michelle Yeoh, Misbun Sidek, Nicole David, Lee Chong Wei, N. Mohanadas and M. Magendran.

Parents did not want the children to repeat the obstacles they went through. And perhaps in doing so, some parents could have overdid things -- pampering. E.g. buy lots of products, dropping a child directly in front of school gate etc. to the point, that the kids are basically and often spoiled or choosy.

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What does Companies have to say about sharing more of their profits? Nothing.

Why should they if they are raised on the literature of Peter Drucker, Steve Jobs, Kaplan and Norton?

Where is the Performance? Where is the technological breakthrough? Where is the leap from the first plane to fighter planes, and thereafter? Is Neutron bomb the first and last?

What should Business Owners or Government pay for... Nought?

Socially people are not getting any better but anti-authority. So who will be bearing all the future costs of Golden Age etc.? No one except for those who have kept the money for their children and to fend for themselves. Most of these had invested into businesses for a better future and in turn to handover to their children, who will somehow have to figure out ways of running (not ruining) the businesses. Or else have qualified managers to do the jobs.

Note: It is equally disgraceful for large organisations, to employ staff with minuscule salaries. The business owners had forgotten their taste of medicine and sought to 'educate' the current generation how it was like 30 years ago.

On the other hand, that employees can choose their employers. If they are adaptable, have the necessary skills and knowledge, they will go very far indeed. In today's highly inflated cost, employees must earn sufficient to live an enjoyable and tolerable life.

The only way to go up to ladder is to work hard, don't mind the initial salary as long as its reasonable (don't even think of wealth independence), get the right number of years experiences under the belt, try to survive the job, don't job hop and of course, stay in the company that cares.

If you wish to risk it all, start your own company, try to earn gazillion ringgits, but make sure you pay your staff as much as what you would have paid yourself - which was one of the reasons you started your own company, so don't blame the staff.

In the nutshell, pick yourself up and don't be lazy, then we will look at this High Income Dream we all have been talking about.

The 51st Consultant

Penang, 8 September 2011 – A decade ago, a representative of a Japanese conglomerate asked me, what I can contribute to an existing team of 50 internal consultants. That question deserved some serious thinking time then and now.

Companies spend hours with their consultants going over action plans after action plans, analysing problems, to find out the cause-effects and improve on existing performances. There are situations where the owners of the companies are former consultants themselves. They were the experts in their chosen field be it engineering or accountancy and they chose not to audit themselves, rightly so.

Every assignment has its distinct differences and roles for just about everyone. There can never be enough internal or external specialists to do an excellent job. To easily test this basis, conduct a satisfaction index after a project through questionnaires from a collection of clients. Despite all the efforts, there is still room for more improvement!

Three important elements that the 51^st person should bring in:

Creativity: The key to unlocking a successful case is not 1 or 50 consultants but what is the creative solution for that particular problems contributed by the team. You may have 1,000 chefs, but you still cannot decipher the 11 secret herbs and spices of KFC or the recipe to Coca-Cola without the “Person”. Someone who is daring enough to try and push the limit, shares the fruit of success and failures -- ultimately producing fair results.

Application: It is better to fully cook right than to start a potentially half-done job. A company attaining ISO 9001 for mere marketing highlight achieves lesser satisfaction comparing to actually understanding the entire Total Quality Management and daily applying the philosophy to better satisfy the customers. Having reduce errors by 75%, increasing customer call turnovers by 200% and efficiently handling customer complaints rather than avoiding complaints over period of 2-5 years are definitely more complete than gambling with a 50:50 chance of getting more customers from advertising, “I am certified” in the year.

Change: Even though there are 50 people in a project room, the mere presence of one charismatic 51^st person invigorates everyone. New positive energy, freedom to re-make decisions, fresh ideas, clearer priorities. Unlimited feeling. Perhaps even a new side-project that links up with the Main.

Looking back 10 years ago, it had been wiser to have walked away and affirm later what it takes to be included as the 51st consultant. The constant review of the same tricky question, how can I contribute more, keeps me truly alive.

Benjamin Franklin and a Tutorial on Business Letters

April 6, 1777

"Sir, I have just been honoured with a Letter from you, dated 26th past, in which you express your self as astonised, and appear to be angry that you have no Answer to a Letter you wrote me of the 11th of Decemeber, which you are sure was delivered to me..... Whoever writes to a Stranger should observe 3 Points;

1. That what he proposes be practicable.
2. His Propositions should be made in explicit Terms so as to be easily understood.
3. What he desires should be in itself reasonable.

Hereby he will give a favourable Impression of his Understanding, and create a further Acquaintance... Now is happen'd that you were negligent in all these Points." --- Benjamin Franklin, in a tutorial on business letters from France to a stranger who identified himself only as "Lith".

This Day in Business History

by Raymond L. Francis, pg. 246

19 August

1851 Soft drink entrepreneur Charles Elmer Hires (b. 1851) began selling a ready-to-drink beverage made from 16 different wild roots, herbs, bark and berries in bottles in 1886. He selected the name "root beer" when a friend commented that hard-drinking miners would be attracted to root beer than to herb tea.

1870 Financier, stock speculator and adviser to presidents during and after the two world wars, Bernard Mannes Baruch -- A millionaire by 30, he said in 1955 on his 85th birthday,

A man can't retire his experience. He must use it. Experience achieves more with less energy and time.

1883 Gabrielle "Coco" Chanel, the French fashion designer/entrepreneur/said to be Nazi spy or lover to one, who ruled over Parisian haute couture for 6 decades, said,

Innovation! One cannot be forever innovating. I want to create classics.

Highlight Issue: Why Some Companies Fail to Live to Expectations

For the past months, it is being observed that Top Management failed to deliver as promised.

Whilst it is good to note that Corporate Malaysia attempts to split the work of a Chairman/Managing Director with the day-to-day running of CEO/General Manager, a word of caution must be explicitly offered:-

Choose your people wisely.

Nowadays, Top Management being CEOs and other titulars are from younger generations which are tech savvy and enterprising. Their aggressive attitudes and egos in life are fast-paced and honorific -- which can be both pros and cons.

Pros -- equal minded business partners are willing to work with those who pursue dreams at a shorter life span. Why be profitable by the 7th year when it can be done in 3 years with good partnership?

Cons -- over-promising, #1 in suggestions and #last in carrying out actual work. Resulting: poor results.

Here, bad CEOs highlighted their lives to the public -- from one Facebook entry of a young CEO,

"Its a boring job" and the personal interests are all the political-activities such as anti-this, anti-that of non-business related affiliations.

Perhaps he wants to emulate the styles of Sam Wal-"mart"ton, Michael Dell or Tan Sri Tony Fernandez, people who live life to the fullest and interacting with the people around them. However, these people rub positive image and positive beliefs.

It is no wonder, a used to-be great company which had millions in profits ending up with millions in losses over short-term period after management restructuring.

If the CEO finds his job boring, little wonders what the staff feels about his/her job over there.

“STRATEGOS – The New Era

A General observing an on-going battle with his military advisers - Strategos

Strategy and Strategic derived from the Greek root-word, Strategos. It is a title meaning, General or Leader and are used to this day. Over the years, the words are used as reference to Office or Command of a General where all the works of leaders are made to be carried out.

So where is the General’s Office? It used to be on top of the hill overlooking at the battle formations of troops lying across the plains. There are leaders who lead from the front – Guan Yu, Alexander, Napoleon, – who used horses for height and speed advantage. Technology and rival tactics changed all that.

Natural leaders like Ulysses Grant are among the first to recognise leaders need not be in frontline to be able to see, control and plan how things to go in battles. This cut the risks of losing the person who thinks on saving lives of others. What happens if the leaders are to die first in business? Whole organisation will ultimately fail.

Being involved in strategy has been the key activity for our firm. Unfortunately some professionals misused the word strategy when they are actually in the field of planning, accounting and other major aspects of organisations. This was the problem encountered by Bower (McKinsey), Drucker (Father of Management) and Henderson (BCG) when defining their art.

2011 represents a new era where leaders of the World are to conform new sets of international rules of conformity after disastrous this few years in almost everything we did from money markets, constructions to diplomacy.

The Strategos / Leader shall lead the way.

Win-Lose Proposition in Life

From an innocent question of a manager from Fortune 100, “What is new in MIENS?” - it became a signature course at year-end 2010 with Intel, Alor Star’s Nursing College, Penang’s Nursing College having participated and a few more in the books.

MIENS has always been on research and development of solving management problems and understanding of leadership activities. So much so, our Principal – Erasmus teamed up with Dr Daisy Kee (USM) and Prof. Dr Zainal Ariffin (UNITEN) to work on a leadership book in 2009. What is new? We took off to the tangent with W-L Proposition in Life which explores the largely unwanted part of Conflict Management theory – Win-Lose or Lose-Win.

Do You Know?

After accumulating feedbacks from various excellent organisations be it Private (Pvt) and Public (Pub) sectors, these are some strong trend indicators to suggest the following:

1. 99% started out looking for the top position in career.

2. 22% (Pvt), 77% (Pub) are well-equipped with a career path plan.

3. 10% (Pvt), 44% (Pub) willing to take smaller roles.

4. 33% (Pvt), 54% (Pub) currently have other occupations such as MLM, Insurance, Tupperwares, etc.

5. 67% (Pvt), 86% (Pub) are willing to swap loyalty to the other industries when their “other occupation” turns better.

T'was a Time - Tribute to Tun Dr Lim Chong Eu

Just before his 90^th Birthday, I’d met up with Tun at the appointed time. My purpose was to write his biography.

Our 4-hour conversation was kept behind closed doors and at his request, no records were to be made.

I asked two insight questions: How was the critical thinking done that leads to the fateful decisions made after 1969? Would Penang be as dynamic as Singapore or Hong Kong?

He took time to answer one of the questions. Unfortunately like the other two would-be personal biographers before me, he had chosen not to reveal his life-story. I miss this Old Free dearly who rightly deserved to be our King’s Scholar – Erasmus Koay