How many times have you faced your client, at the negotiation table, trying to convince them on the salary proposal, for the best candidate you have put forward to them?
Often times, clients' HR Directors are faced with contradicting salary data, as they tend to swear by the salary surveys churned out by global survey companies, that specialize in HR.
These survey companies need to conduct periodic surveys and share updates, in tandem with the changes in global compensation patterns. These patterns are the actual reflection of best talents are acquired and retained, more so when the market becomes more dynamic, swirling and twirling with a landscape that is trying to accomodate global competitiveness.
We had faced recent cases, in appointing top executives at multinational companies. Most often than not, the Hiring Team is flabbergasted with the compensation, some called it "obscene", offered to the top talents in the market. Flabbergasted they may be, but I think they are slow to react to the patterns in the market.
During negotiations, the HR Directors often cite a specific salary band of a compensation model, to support their arguments but it serves no purpose, because that is obsolete, especially when it comes to HIPOs, or we call it top talents.
Besides being a barrier to hiring top talents to a higher position, salary surveys also pose obstacles when it comes to hiring a top talent who moves laterally, but to take on wider regional of responsibility or scope of work. We had recently placed a Medical Advisor, at a pharmaceutical firm that is ranked among the Top 5 worldwide. The salary suggested, which was based on a specific survey, was just slightly 5% above the salary currently earned by the talent of ours. HR faced problems negotiating with the management, as they referred to the much revered upon, bible of salaries, with some justifications on the new role. After much argument and with hesitations, the talent was offered a new position, to accommodate the salary expected by the talent.
As a committed Executive Search Firm, we strive to add value to our clients, by providing them the actual market data, which we advise as an informal representation of the market. Most times, they are thankful and this makes the life of a headhunter much easier!
Sunday, July 5, 2009
Saturday, May 16, 2009
Finding Great Value in Business in Times of Crisis
This crisis proves to be a great blessing to many of us, who had rolled up our sleeves from the day we heard of the sub-prime issues in the United States, and having sensed the signs lurking in the market based on murmurs of impending dark days from clients and business leaders we interacted with, and other signs such as review of headcounts, renegotiation of terms, etc .
While its impact can't be neglected, any organization that wished to maintain its business sanity should also ride the storm with wide eyes, and the determination to wrestle each challenge with its own smooth execution of strategies.
This is the time to unleash the potential of its people, in driving the business. If the leaders could assure its people that there would not be any job losses, and remind its people to continue working hard and remain relevant, these people who drive your organization will be more alert in running the machineries in the business.
Cost Containment
Cost containment has always been the role of business managers. The first thing organizations do, when they are hit by a crisis, is to trim down employee costs and benefits. Instead of behaving like a bull in a china shop, leaders should take a step back, and think of other areas to cut cost, and continue valuing and appreciating their employees during tough times.
Extend the cost containment function deeper down the organization. Remind each employee on a regular basis to play their role in cost containment. Don't increase expenses, reduce unnecessary investments, source for new services and vendors, review and renegotiate services, and avoid wastage. It may make sense to have a champion in each division to look into this initiative. Cost Containment should be on the agenda of weekly or monthly staff meeting.
You will be amazed with the myriad demands of organizations that are wrapping the business landscape right now with demands of price reduction, extension of payment terms, with desperate threats of shifting their business to someone else. Are they wrong or should they be praised for their strong approach? An extension to 90 days payment term from 60 days may look like a pathetic cry, but don't dismiss the savings across the globe if an organization achieves this target.
Process Improvement
CnetG in its discussion with its clients, have found that some organizations are encouraging its people to explore new ways of completing a task, in order to achieve great margin, and probably pass on the benefits to customers through better pricing. CnetG had recently placed a Director for O&M responsible for the ASEAN market, and his prime objective is to bring international skills to the region, and to train local engineers in order to bring operational cost savings to the organization, and eventually increase its competitiveness in the market. CnetG has also been creative in its approach to clients who request for better terms for Executive Search and Selection, such as simplified candidate reports and faster selection process with commitment from client. We helped clients by removing some costly add-on services, in order to trim down their investment. We also place top talents in organizations through consultancy engagements, contrary to the typical assignments handed over by clients.
By pushing sales creatively, an organization need not cringe with intimidating customers demanding for price reduction. Remember, if they had indeed returned to you, the interest in you is obvious. Why cringe? Be creative.
Business Development, Increased Sales Efforts and Account Management
During trying times, business development activities should be revamped. Relook into what your clients actually need and that reflects the challenges the crisis has on them. Revamp solutions or propose packages that are easier to digest and implement. Sales efforts should be increased, with clearer targets and rewards. Lastly, mine through current clients and get deep into their organizations for more opportunities. Account Management is critical at this time, as nobody can afford loosing customers right now. You will be surprised with the potential business lurking within your accounts.
Cheaper Acquisitions and Procurement of Services
If there is a large purchasing activity coming about, time it properly to take advantage of low cost of material, services, etc. Software acquisition price should be lower now, as the software house has a sunken cost for development and if desperate, they should be able to consider lower prices or flexible packages. If your clients are turning to you for reduced costs and advantegous payment terms, you should be doing the same. Dont undermine the savings even from the smallest vendor.
CnetG's Payroll and HR Outsourcing business in Malaysia and Singapore grew tremendously in the last 6 months, as clients resorted to switching from vendors sitting on big seats operating from large platforms in a cosy, luxurious office hurdled in a vibrant metropolitan. By shifting their business to CnetG, they had invariably achieved 5-15% cost savings. Some of them engaged vendors who humped their chests as global players and entitling themselves to global rates. Clients need local services, and offering simple solutions enables them to enjoy local rates. They can't afford anymore to engage international vendors who have offices sprout all around the globe and payroll churned out by foreigners with no local HR knowledge.
Creative Recognition and Rewards Drive People
A recent survey by McKinsey showed that people's motivation level with be at its lowest ebb, during a crisis. Don't forget, not just the job may be at stake, but also at family fronts, there are other issues due to inflationary impact. School fees go up, tuition fees are increased, cost of groceries are already at its peak. Do your part in the organization. Introduce short-terms goals, targets and rewards that will spur people to work harder, with reduced stress and problems. Have fun at work. Have short breaks. Declare quarter day breaks to the star performer. You can earn back that cost from cancelling subscription to lifestyle magazines!
Share your comments by emailing to rajmclaren@gmail.com as I would also like to learn from you, about your initiatives that have proven to be successful.
While its impact can't be neglected, any organization that wished to maintain its business sanity should also ride the storm with wide eyes, and the determination to wrestle each challenge with its own smooth execution of strategies.
This is the time to unleash the potential of its people, in driving the business. If the leaders could assure its people that there would not be any job losses, and remind its people to continue working hard and remain relevant, these people who drive your organization will be more alert in running the machineries in the business.
Cost Containment
Cost containment has always been the role of business managers. The first thing organizations do, when they are hit by a crisis, is to trim down employee costs and benefits. Instead of behaving like a bull in a china shop, leaders should take a step back, and think of other areas to cut cost, and continue valuing and appreciating their employees during tough times.
Extend the cost containment function deeper down the organization. Remind each employee on a regular basis to play their role in cost containment. Don't increase expenses, reduce unnecessary investments, source for new services and vendors, review and renegotiate services, and avoid wastage. It may make sense to have a champion in each division to look into this initiative. Cost Containment should be on the agenda of weekly or monthly staff meeting.
You will be amazed with the myriad demands of organizations that are wrapping the business landscape right now with demands of price reduction, extension of payment terms, with desperate threats of shifting their business to someone else. Are they wrong or should they be praised for their strong approach? An extension to 90 days payment term from 60 days may look like a pathetic cry, but don't dismiss the savings across the globe if an organization achieves this target.
Process Improvement
CnetG in its discussion with its clients, have found that some organizations are encouraging its people to explore new ways of completing a task, in order to achieve great margin, and probably pass on the benefits to customers through better pricing. CnetG had recently placed a Director for O&M responsible for the ASEAN market, and his prime objective is to bring international skills to the region, and to train local engineers in order to bring operational cost savings to the organization, and eventually increase its competitiveness in the market. CnetG has also been creative in its approach to clients who request for better terms for Executive Search and Selection, such as simplified candidate reports and faster selection process with commitment from client. We helped clients by removing some costly add-on services, in order to trim down their investment. We also place top talents in organizations through consultancy engagements, contrary to the typical assignments handed over by clients.
By pushing sales creatively, an organization need not cringe with intimidating customers demanding for price reduction. Remember, if they had indeed returned to you, the interest in you is obvious. Why cringe? Be creative.
Business Development, Increased Sales Efforts and Account Management
During trying times, business development activities should be revamped. Relook into what your clients actually need and that reflects the challenges the crisis has on them. Revamp solutions or propose packages that are easier to digest and implement. Sales efforts should be increased, with clearer targets and rewards. Lastly, mine through current clients and get deep into their organizations for more opportunities. Account Management is critical at this time, as nobody can afford loosing customers right now. You will be surprised with the potential business lurking within your accounts.
Cheaper Acquisitions and Procurement of Services
If there is a large purchasing activity coming about, time it properly to take advantage of low cost of material, services, etc. Software acquisition price should be lower now, as the software house has a sunken cost for development and if desperate, they should be able to consider lower prices or flexible packages. If your clients are turning to you for reduced costs and advantegous payment terms, you should be doing the same. Dont undermine the savings even from the smallest vendor.
CnetG's Payroll and HR Outsourcing business in Malaysia and Singapore grew tremendously in the last 6 months, as clients resorted to switching from vendors sitting on big seats operating from large platforms in a cosy, luxurious office hurdled in a vibrant metropolitan. By shifting their business to CnetG, they had invariably achieved 5-15% cost savings. Some of them engaged vendors who humped their chests as global players and entitling themselves to global rates. Clients need local services, and offering simple solutions enables them to enjoy local rates. They can't afford anymore to engage international vendors who have offices sprout all around the globe and payroll churned out by foreigners with no local HR knowledge.
Creative Recognition and Rewards Drive People
A recent survey by McKinsey showed that people's motivation level with be at its lowest ebb, during a crisis. Don't forget, not just the job may be at stake, but also at family fronts, there are other issues due to inflationary impact. School fees go up, tuition fees are increased, cost of groceries are already at its peak. Do your part in the organization. Introduce short-terms goals, targets and rewards that will spur people to work harder, with reduced stress and problems. Have fun at work. Have short breaks. Declare quarter day breaks to the star performer. You can earn back that cost from cancelling subscription to lifestyle magazines!
Share your comments by emailing to rajmclaren@gmail.com as I would also like to learn from you, about your initiatives that have proven to be successful.
Sunday, April 19, 2009
Should A Company Halt Hiring During A Crisis?
While it makes business sense to pause and critically assess roles and manpower requirements during this crisis, this is also an opportunity to build pipeline for the future.
To start with, an effective graduate employment program should continue, as no organizations should be caught with pants down, when the market is ripe, say in 2 years. Young graduates canbe provided hands-on trainings and job rotations for a year or two, before they are finally offered permanent employment in a function where they excel in. An oil major had done just this, when it froze its recruitment in January this year. The company has the board's approval to only hire fresh graduates, who are the cream of the crop, from Ivy League universities.
This is also a good time to find top talents, as people who are always on a high, will get impatient and experience anxiety if their current organization does not promise a good future today. However, never assume that you will get a good bargain, as these are top talents who know their market value.
CnetG Asia had experienced this recently. A German energy company had recently appointed a Malaysian as a Director for Services, for its ASEAN cluster. Just 6 months ago, they would not have imagined localizing this role, as talents in similar roles are only a handfew, and are at the peak of their career with competitors. CnetG recommended this approach and highly recommended a candidate from a US based competitor, who had all the workings of this role. Negotiations were concluded within a month, and the candidate had recently started his new career, which he would not have achieved in his last company.
To start with, an effective graduate employment program should continue, as no organizations should be caught with pants down, when the market is ripe, say in 2 years. Young graduates canbe provided hands-on trainings and job rotations for a year or two, before they are finally offered permanent employment in a function where they excel in. An oil major had done just this, when it froze its recruitment in January this year. The company has the board's approval to only hire fresh graduates, who are the cream of the crop, from Ivy League universities.
This is also a good time to find top talents, as people who are always on a high, will get impatient and experience anxiety if their current organization does not promise a good future today. However, never assume that you will get a good bargain, as these are top talents who know their market value.
CnetG Asia had experienced this recently. A German energy company had recently appointed a Malaysian as a Director for Services, for its ASEAN cluster. Just 6 months ago, they would not have imagined localizing this role, as talents in similar roles are only a handfew, and are at the peak of their career with competitors. CnetG recommended this approach and highly recommended a candidate from a US based competitor, who had all the workings of this role. Negotiations were concluded within a month, and the candidate had recently started his new career, which he would not have achieved in his last company.
Is It Safe To Move Now? Part 3
I am terribly sorry for this long hiatus. My ideas stop flowing thoughts to paper, on certain Sundays although my mind churns out essential points on this topic.
As the saying goes - In chaos lies opportunities!
Too often than not, we miss on grabbing an opportunity, and mull over what we are gonna miss. Is it safe to stay is also an important question to ask oneself.
While I stop short of pressing the panic button or implying it's never safe to stay, I pose this question to make you think. Certain roles would be combined in order to step up emphasis on a certain function and also for cost reasons. Certain products will be pulled out from the market, due to slowing demand, or higher cost of raw material. Therefore, it's always advisable to assess your current job and organization, regardless, of a career opportunity or for growth within.
Besides slowing demand, there are other reasons your organization many not see the heydays it saw before. In Malaysia, a new tobacco regulation will allow local brands to penetrate the market and it is anticipated that some Asian brands will be high in demand, among the foreign workers who may not be able to afford the international brands. This would make your current employer more vulnerable to cheaper competition. Do they have plans to counter this competition? Consider the high levels of investments they have placed in Malaysia over decades. How would they recoup these investment? Think.
In summary, treat any job opportunity as you have always treated during the boom times. Assess your prospects within your organization. Also obtain financial and management reports of current employer and the prospective organization. Did they act fast to various challenges? Were the actions effective?
I am sorry if you had not obtained a one word answer from me, but if you expect to land the almost perfect job, with the best prospects and pay package, lots of research and homework have to be done.
At CnetG, nothing has changed. If there is, perhaps more cautious clients. We receive 8-10 assingments a week, but as a responsible consulting firm, we screen through all assignments in terms of its prospects and security.As the saying goes - In chaos lies opportunities!
Sunday, February 22, 2009
Is It Safe To Move Now ? - Part 2
Where can one move now?
Few sectors are evergreen sectors, that have proven to be robust during crisis. People will continue to spend on healthcare, be it medical equipment, drugs or supplements. If at all there is a cut in spending, the last to go would be medical equipment and drugs. World renowned companies such as Pfizer, GSK, Merck will be faced with challenges from generic drug makers and they have to find ways, if they do not have new pipelines, either by acquiring struggling companies or acquiring new product lines. Good news is that Pfizer's board has agreed to acquire Wyeth, pending approval from authorities and GSK has acquired UCB. This shows these majors have strong cashflow and base and are adapting fast to the situation. In Malaysia, private medical care and medical tourism has gained popularity which then, requires new infrastructure, investment in new equipment and systems and skilled talents.
The other sector that will adjust quickly and is always robust is the Energy sector. I reckon that oil majors and utilities will hold back on investing on green plants for now. This is because, the price of oil per barrel does not promise a decent return on investment. During this time, plant owners would increase spending on extension of plants, refurbishment and rehabilitation of existing plants and improvement on operation and maintenance activities. Stuart Dean, the President of GE for S.E.A has in fact concurred on this, in an interview with BFM, in early February. Malaysia has already become global hubs for few multinational companies, for the provision of plant services and engineering. We are now ready to ride on this new opportunity of investments.
Although banking and finance will generally be lukewarm, there is always opportunity within as people would find alternatives to increase the return on investments. Hence, banks will beef up the risk, internal audit and recovery functions. Debt restructuring will also be on the rise. I feel this time people would be wiser, knowing that many international banks are now on life support. Islamic Banking would attract some interest as it is known for its altruistic nature. Malaysia has become the hub for Islamic Finance and Singapore is fast catching up too.
Generally, there would be a great demand for experts in the area of risk and internal audits, as corporate governance will be on the front page of key strategies laid out most listed companies during this time.
CnetG had seen an increase in orders for Finance experts in the last 6 months. Companies will be looking at highly effective cost control techniques, increase operational and financial audits and risk management.
Pulling out a page from the last recession, experienced HR people will be on demand too. HR experts with M&A expertise, or organizational development experts with transformational and capability growth expertise and attraction and retention expertise will be on the rise.
Interestingly, a major oil company had recently adjusted the salaries of its engineering team, and each of them got an average 25% increase in pay! This could be a strategy to retain good people and allay fears of losing jobs, by demonstrating their firm belief on its people.
I am terribly sorry for this long hiatus. My ideas stop flowing thoughts to paper, on certain Sundays although my mind churns out essential points on this topic.
Besides demand in certain industries, few critical jobs will be high in demand too. Companies that are shedding its old, ineffective ways of doing business, will obviously look out for CEOs from the slew of successful companies around the world. Now, don't be absolutely sure that just because a company reports losses in the last 2 quarters, its on a brink of collapse. A well run organization, without government bailouts or unjustified vested interest, should face the natural economic cycles, as an exercise to better itself after each phase.
GE Capital reports a loss of 22% last year, however GE Energy is recruiting up to 800 engineers worldwide, as it expects the Operation and Maintenance sector to speed up. As shared before, most asset owners would now increase spending on O&M, instead of on new plants, to improve output. One of the reasons GE has always emerged stronger after each crisis and mid-crisis is because it sheds its skin from time to time. Non-performing CEOs or captains are booted out immediately and replaced with top talents from within the business or outside the business.
CnetG had also recently placed a Director for Legal and Compliance with a multinational pharmaceutical company which had just acquired a smaller competitor and has appetites for more acquisitions. Naturally, the successful candidate, who hails from another equally large cash rich FMCG company was unusually worried than she was, in August 2008. However, after considering the impact of her new role in the imminent M&As, and Compliance initiatives, she was far more convinced that she has greater prospect in the new organization, than what her current organization has to offer.
Next: Why not stay?
Few sectors are evergreen sectors, that have proven to be robust during crisis. People will continue to spend on healthcare, be it medical equipment, drugs or supplements. If at all there is a cut in spending, the last to go would be medical equipment and drugs. World renowned companies such as Pfizer, GSK, Merck will be faced with challenges from generic drug makers and they have to find ways, if they do not have new pipelines, either by acquiring struggling companies or acquiring new product lines. Good news is that Pfizer's board has agreed to acquire Wyeth, pending approval from authorities and GSK has acquired UCB. This shows these majors have strong cashflow and base and are adapting fast to the situation. In Malaysia, private medical care and medical tourism has gained popularity which then, requires new infrastructure, investment in new equipment and systems and skilled talents.
The other sector that will adjust quickly and is always robust is the Energy sector. I reckon that oil majors and utilities will hold back on investing on green plants for now. This is because, the price of oil per barrel does not promise a decent return on investment. During this time, plant owners would increase spending on extension of plants, refurbishment and rehabilitation of existing plants and improvement on operation and maintenance activities. Stuart Dean, the President of GE for S.E.A has in fact concurred on this, in an interview with BFM, in early February. Malaysia has already become global hubs for few multinational companies, for the provision of plant services and engineering. We are now ready to ride on this new opportunity of investments.
Although banking and finance will generally be lukewarm, there is always opportunity within as people would find alternatives to increase the return on investments. Hence, banks will beef up the risk, internal audit and recovery functions. Debt restructuring will also be on the rise. I feel this time people would be wiser, knowing that many international banks are now on life support. Islamic Banking would attract some interest as it is known for its altruistic nature. Malaysia has become the hub for Islamic Finance and Singapore is fast catching up too.
Generally, there would be a great demand for experts in the area of risk and internal audits, as corporate governance will be on the front page of key strategies laid out most listed companies during this time.
CnetG had seen an increase in orders for Finance experts in the last 6 months. Companies will be looking at highly effective cost control techniques, increase operational and financial audits and risk management.
Pulling out a page from the last recession, experienced HR people will be on demand too. HR experts with M&A expertise, or organizational development experts with transformational and capability growth expertise and attraction and retention expertise will be on the rise.
Interestingly, a major oil company had recently adjusted the salaries of its engineering team, and each of them got an average 25% increase in pay! This could be a strategy to retain good people and allay fears of losing jobs, by demonstrating their firm belief on its people.
I am terribly sorry for this long hiatus. My ideas stop flowing thoughts to paper, on certain Sundays although my mind churns out essential points on this topic.
Besides demand in certain industries, few critical jobs will be high in demand too. Companies that are shedding its old, ineffective ways of doing business, will obviously look out for CEOs from the slew of successful companies around the world. Now, don't be absolutely sure that just because a company reports losses in the last 2 quarters, its on a brink of collapse. A well run organization, without government bailouts or unjustified vested interest, should face the natural economic cycles, as an exercise to better itself after each phase.
GE Capital reports a loss of 22% last year, however GE Energy is recruiting up to 800 engineers worldwide, as it expects the Operation and Maintenance sector to speed up. As shared before, most asset owners would now increase spending on O&M, instead of on new plants, to improve output. One of the reasons GE has always emerged stronger after each crisis and mid-crisis is because it sheds its skin from time to time. Non-performing CEOs or captains are booted out immediately and replaced with top talents from within the business or outside the business.
CnetG had also recently placed a Director for Legal and Compliance with a multinational pharmaceutical company which had just acquired a smaller competitor and has appetites for more acquisitions. Naturally, the successful candidate, who hails from another equally large cash rich FMCG company was unusually worried than she was, in August 2008. However, after considering the impact of her new role in the imminent M&As, and Compliance initiatives, she was far more convinced that she has greater prospect in the new organization, than what her current organization has to offer.
Next: Why not stay?
Sunday, February 15, 2009
Is It Safe To Move Now - Part 1
As a senior partner of CnetG Asia, a HR Outsourcing firm, and also as Director of its Executive Placements business, I have been proded with this question in the last few weeks. In fact, we went on air on BFM 89.9 ( a new business channel in Malaysia) on this topic last week. Follow this link, if you missed it -
http://www.bfm.my/Is-it-Safe-to-Move-Raj-Kumar-Manish-Mehta-CNetGAsia.html
Unnecessary panic and apprehension can rob you of opportunities that may take you to greater heights in the next few years.
Any move to a new job, has to be thought off carefully, regardless of the economic cycle we are in, whether it's during a boom or during an economic crisis.
We are actually facing a global economic crisis, which was worsened by also the global credit crunch. This couling effect would have a myriad of impact on all sectors, on all countries in every region, on every strata of people and society.
The first crack appeared in August 2007 but it was taken lightly by all countries, thinking it's a domestic financial problem. It was the subprime issue in the U.S. that shocked the whole world and later brought out more worms in the can, with the collapse of strong financial organizations, such as Lehmann and Barclays.
Subsequently, every country started issuing negative reports. I attended several forums in search of facts and figures and the direction of the world economy. I was lucky to be invited to the Khazanah Megatrends 2008, which is the barometer of Malaysian economic and finance outlook for the following year. Reports show that the financial reforms by Bank Negara and the current results show that Malaysia will be cushioned, if not protected by the crisis. Our savings rate is at its highest and the NPL is considered low. An acquaintance of mine, who is a senior HR expert in a oil company said that Bank Negara has warned of a major impact in May and could last for 12-18 months, depending on how the government, GLCs and the private sector respond to it.
World reports from CNN and CNBC have showered some good news. Companies have started adapting to the crisis with a myriad of actions including restructuring, acquisitions, cost cuttings and shockingly, firing of inept CEOs, who were driven by greed, and self-centered policies.
Like dangerous curves on a racetrack, economic downturns create more opportunities for companies to move from the middle of the pack into leadership positions than any other time in business.Unlike straight-aways where leaders can thrive on raw power alone, steep curves require strategic finesse. That often results in dramatic differences in performance as leaders steer out of the curve.
This is the first flash of good news, that now is a better time to move, than before.
http://www.bfm.my/Is-it-Safe-to-Move-Raj-Kumar-Manish-Mehta-CNetGAsia.html
Unnecessary panic and apprehension can rob you of opportunities that may take you to greater heights in the next few years.
Any move to a new job, has to be thought off carefully, regardless of the economic cycle we are in, whether it's during a boom or during an economic crisis.
We are actually facing a global economic crisis, which was worsened by also the global credit crunch. This couling effect would have a myriad of impact on all sectors, on all countries in every region, on every strata of people and society.
The first crack appeared in August 2007 but it was taken lightly by all countries, thinking it's a domestic financial problem. It was the subprime issue in the U.S. that shocked the whole world and later brought out more worms in the can, with the collapse of strong financial organizations, such as Lehmann and Barclays.
Subsequently, every country started issuing negative reports. I attended several forums in search of facts and figures and the direction of the world economy. I was lucky to be invited to the Khazanah Megatrends 2008, which is the barometer of Malaysian economic and finance outlook for the following year. Reports show that the financial reforms by Bank Negara and the current results show that Malaysia will be cushioned, if not protected by the crisis. Our savings rate is at its highest and the NPL is considered low. An acquaintance of mine, who is a senior HR expert in a oil company said that Bank Negara has warned of a major impact in May and could last for 12-18 months, depending on how the government, GLCs and the private sector respond to it.
World reports from CNN and CNBC have showered some good news. Companies have started adapting to the crisis with a myriad of actions including restructuring, acquisitions, cost cuttings and shockingly, firing of inept CEOs, who were driven by greed, and self-centered policies.
Like dangerous curves on a racetrack, economic downturns create more opportunities for companies to move from the middle of the pack into leadership positions than any other time in business.Unlike straight-aways where leaders can thrive on raw power alone, steep curves require strategic finesse. That often results in dramatic differences in performance as leaders steer out of the curve.
This is the first flash of good news, that now is a better time to move, than before.
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