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ABSTRACT BUSINESS
LOCAL BUSINESS
T&T’S WEAK LABOUR MARKET Written by Crystal Cassie
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olitician Bill Owens once said that “A strong economy begins with a strong, well-educated workforce.” In T&T, labour has become a major challenge. Charles Pashley, managing director of Prestige Holdings claims that the labour problems businesses face in T&T will continue to hurt the economy through higher inflation, because of pressure created by changing wage structures. So what are the problems that plague T&T’s labour market? The most obvious is that there is a shortage of labour for the service and manufacturing sectors. Many argue that this labour shortage is exacerbated by Government employment programmes, with Trade Minister Vasant Bharath admitting that “governments past and
ADDING TO THE LABOUR SHORTAGE IS THE MISMATCH OF SKILLS BETWEEN LABOUR MARKET NEEDS AND SKILL TURNOUT, LACK OF CONTINUOUS TRAINING AND POOR WORK ETHIC present have, to some extent, crowded out the private sector.” Businessman Robert Bermudez states that “There is no doubt the State as the largest employer, at 40%...has some responsibility for the shortage of labour.” Furthermore, Businessman Arthur Lok Jack said the labour problem was keeping back the manufacturing sector at a time when there was need to produce more. Statistics from the Central Bank show that in 2008 out of a labour force of approximately 627,000 close to 29,000 persons
were employed under the URP. By 2011, URP employed 38,000 persons —an increase of 30% or 9,000 persons. Adding to the labour shortage is the mismatch of skills between labour market needs and skill turnout, lack of continuous training and poor work ethic. Pashley points out the low productivity and inefficiency in the labour market. “These cultural norms have been developed over generations and are unrealistic. Fourteen days sick leave is now an entitlement.” He described the poor work
ethic of the millennials especially, the age group that covers 18 years to 35 years. “They have a mentality of wanting everything now, instant gratification. In the old days we had a university graduate coming in at the entry level and working our way up to management level. What has happened is university graduates want positions in management without prerequisite experience.” He also complained that as a society, service is stigmatised and many people do not wish to work in a service-oriented sector like the quick service restaurant sector. “We look at serving as servitude rather than what it is, which is service. We need to get away from that mentality.” Lok Jack adds to this. “Because of the significant shortage they know and understand why you can’t fire them. They
www.amgtt.com • MAY, 2015 • ABSTRACT BUSINESS
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LOCAL BUSINESS
know that we need them. They behave in the worst possible way. We tried psychology, training this, that and the other. High absenteeism is the final result; the reason for that is a low unemployment rate of 3%,” he said. He said “Now what that has caused is an attitudinal problem more so than a skillset issue.” So what is the way forward? One solution that has been going on for years is the importation of labour to fill the gap. The minister stated that “We should not pursue the importation of any labour, especially if we have graduates of our institutions seeking job opportunities, many of whom are unknown to these employers.” But there is another side of importing labour- including higher wage bills, bonding fees and housing costs. Also, there are social costs such as burdening the health sector, schools and transportation. Pashley called for the opening of the labour market and the reduction of government programmes such as URP and CEPEP. He suggested opening the market up to Caribbean 2
PASHLEY CALLED FOR THE OPENING OF THE LABOUR MARKET AND THE REDUCTION OF GOVERNMENT PROGRAMMES SUCH AS URP AND CEPEP. HE SUGGESTED OPENING THE MARKET UP TO CARIBBEAN NATIONALS, REVAMPING THE IMMIGRATION POLICY TO MAKE IT EASIER FOR FOREIGNERS AND REDUCING THE COST OF WORK PERMITS nationals, revamping the immigration policy to make it easier for foreigners and reducing the cost of work permits. He suggested an aggressive recruitment drive, reducing the entry level requirements from three O’ levels to a secondary school compilations certificate and incentives for team members so when they bring in new members they get a “healthy pay adjustment.” Another solution is the alignment of tertiary education in T&T with the labour needs of the business community. Catherine Kumar, CEO of the T&T Chamber of Industry and Commerce states that “there is still need for a proper alignment between what we are spending GATE money on and educating our population, with what the
ABSTRACT BUSINESS • MAY, 2015 • www.amgtt.com
needs of businesses are, and the sectors we are going to diversify in,” she said. “When they come out/graduate they become frustrated, they end up doing jobs that they don’t really want to do because it is not in their interest. I think there needs to be a revamp of that aspect to make sure that it is targeted to the sectors that we need.” Training also needs to be addressed. Speaking at the official opening of National Energy Skills Centre’s (NESC) first jobs fair, Tertiary Education and Skills Training Minister Fazal Karim said that it is through the job fairs that the labour shortage will be addressed, because they serve as a useful contact point between employers and graduates, providing the ideal meeting point for employers to
meet potential employees. He stated that the job fair would continue and several projects were scheduled for 2015 including the launch of Petro UT and the opening of the Centre for Workforce Research and Development (CWRD) which would ensure there was reliable empirical data about what the labour market requires. He also promised to look into the introduction of a new OJT-manufacturing programme where the Government would pay 60% and employers pay 40% of a trainee’s salary. There is also a proposal to assist manufacturers in developing “soft skills” among employees under a workplace character education programme designed to build a stronger work ethic. Karim told reporters he was hopeful that within a month the process of formalising the absorption of CEPEP workers into the private sector could begin. The risk of continued falling oil prices poses a substantial threat to economic well-being, so it is pertinent to address labour issues in growing sectors to maintain global competitiveness for T&T.
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ABSTRACT BUSINESS GUIDE
LOCAL BUSINESS
The Unhealthy Health Business
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ccording to the Ministry of Health, diabetes and hypertension are considered an epidemic in the Caribbean and by extension, worldwide. Furthermore, about sixty per cent of the diseases which Caribbean people die from are preventable and are caused by unhealthy eating habits and the consumption of artificially processed foods, according to chief coordinator of the Caribbean Agricultural Farmers Network, Jethro Greene. The simple solution to this problem would be to eat healthier. However despite the colourful posters plastered on the walls of doctor’s offices and inside hospital elevators encouraging persons to consume a well balanced diet, for many of us this is almost impossible. Firstly the adjustment of diets can be quite challenging as many healthier food options differ significantly in taste. However what appears to be the main deterrent is based upon dollars and cents. It is no secret that opting for healthier food choices means spending more money to facilitate this lifestyle choice. Last December, researchers at Harvard published a paper scientifically examining a complaint common among
conscientious eaters. The paper stated that healthy food is more expensive than fast food. Furthermore, researchers in the United Kingdom published a study in PLOS ONE, an online science journal that gives yet more insight into this topic: “not only is healthy food more costly than unhealthy food but the price gap between them has grown significantly over a 10-year period.” If we were to apply this information to Trinidad, we can see a similar trend emerging. For instance the cost of an apple 10 years ago was an average of $1.00 now it varies between $4-$6 depending on location. The same can be seen with the cost of coconut water which now is similarly priced to those sold in plastic bottles. What is even more disturbing about this entire situation is the domino effect is has on the economy. Firstly, the cost of unhealthy food is seen to be more affordable, yet it is responsible for a plethora of health problems that plague today's society. A study done by Express Women, found that seven out of ten mothers bought fast food for the home more than twice a week for dinner and eight out of ten gave money to their children to purchase lunch during the work week. The study further revealed that fruits within
A STUDY DONE BY EXPRESS WOMEN, FOUND THAT SEVEN OUT OF TEN MOTHERS BOUGHT FAST FOOD FOR THE HOME MORE THAN TWICE A WEEK FOR DINNER AND EIGHT OUT OF TEN GAVE MONEY TO THEIR CHILDREN TO PURCHASE LUNCH DURING THE WORK WEEK 4
ABSTRACT BUSINESS • MAY, 2015 • www.amgtt.com
the household was rarely fresh fruit but encapsulated in juice drinks and fruit based processed snacks. Secondly, based on the costing, the consumption level is significantly higher. As such, this sector now faces an even greater risk for obesity, nutritional deficiencies and several chronic diseases. Lastly, this ultimately leads to not only an unhealthy work force but also an unstable economy. According to the United States Department of Agriculture, improper nutrition also
accounts for approximately 71 billion dollars in yearly medical costs. Therefore not only is unhealthy food bad for our bodies but it is also bad for business. While public health campaigns will be needed to inform and encourage change within society, this alone will prove to be futile. Instead a reduction in the cost of health food will not only make it affordable to most but also lead to a healthy nation. After all a dead man cannot contribute to the economy.
ABSTRACT BUSINESS
EYE ON FDI
EYE ON FDI: SECURING INFLOWS TO T&T
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ccording to the United Nations Conference on Trade and Development’s (UNCTAD) World Investment Report 2014, FDI inflows into T&T in 2012 were between 6.7% and 11.7% of GDP. Out of the US$25.7 billion FDI received by the Caribbean between 2008 and 2013, T&T was the largest recipient at US$6.65 billion. But in May 2015, Moody's Investors Service downgraded T&T's government bond rating and issuer rating to Baa2 from Baa1 and changed the outlook for the country from stable to negative, on account of persistent fiscal deficits, the decline in oil prices and a weak macroeconomic policy framework. It is expected that FDI flows will fall and further weaken the country’s credit profile. The agency said T&T’s ratings could improve if there was an upward trend in oil prices that would lead to increased foreign investment in oil/natural gas exploration and production. In response to this, the Central Bank stated that it is expected that “T&T will continue experiencing healthy current account surpluses and strong foreign direct investment (FDI) flows mainly to the energy sector, despite the sharp downturn in oil prices.” But overall indications are that given the economic uncertainty persisting in 2015, and the increased international competition for FDI, T&T will be challenged to increase its share this year. Recent studies also indicate that there is the ongoing challenge of attracting the type of FDI that would contribute to the development of new sectors, and innovation, or which would have the capac6
Written by Crystal Cassie
ity to enhance the productivity and performance of the sectors already existing in the region. So what measures can T&T take to sustain FDI? Trade Minister Vasant Bharath assures that “the Government continues to roll out the red carpet and clear the bureaucracy in doing business in T&T which was evident by the World Bank hailing T&T as one of the top ten reformers in the world out of 189 countries. The Government is committed and flexible in ensuring that the necessary reforms are made to make certain the investment dollar stays on the shores of T&T.” He called for more FDI from Canada to stimulate the T&T economy, noting that Canada is T&T’s fourth largest source of FDI, with some 30 companies investing in various sectors. Caribbean Development Bank’s 2014 Caribbean Economic Review and Outlook for 2015 report stressed the need for policy changes, making it “less costly and easier to
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invest,” if the region expects higher growth rates. It is expected that FDI into the private sector can make it into the main engine for growth. Therefore, there is need to undertake structural reform to create the legal and regulatory framework environment and a broader governance framework to attract investment. This would be added to further fiscal consolidation and greater savings within the region. A new approach to promoting FDI in the Caribbean is to encourage Latin American transnational companies (TNCs) to make investments. These companies possess the technological and production capabilities that countries could capitalise upon in order to develop new sectors or expand existing ones. In order to succeed, governments should formulate active political and commercial macroeconomic policies as part of national and regional objectives. These will enable the TNCs to form part of
the chain of suppliers, promote the transfer of technology and establish the required regulatory framework. The establishment of trade and investment liberalisation agreements between Latin America and the Caribbean and other countries has also complemented FDI policy in the determination of inward FDI. The Association of Caribbean States, as an intermediary body is supporting the growth and development of the region and seeks to play a pivotal role in promoting the attraction plan and re-launching the promotion of regional FDI by its member states. The joint efforts geared toward formulating functional and integrationist policies to promote FDI in the region should consider analysing trade and investment flow trends, organising investment forums and issuing economic information to inform and assist the responsible country officials in their decision making.
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n the modern world of business and technology, the use of the word ‘innovation’ has become popular.
The word itself creates vision of the supermodern, cutting-edge, state-of-the-art and trendy. Let’s take a look at an organisation with a history of innovation, one that goes back an entire century. First Citizens was an innovation. The bank was invented in 1993 to bring to reality a vision for equal services and opportunities for all citizens of Trinidad & Tobago.
The bank is an amalgamation of three banks – three of the country’s first and only indigenous banks that may have otherwise totally closed their doors back in the 90s - The National Commercial Bank, the Trinidad Cooperative Bank, and the Workers’ Bank. As First Citizens was born on this type of innovation; it’s only natural that we continue the tradition of firsts.
Here are some firsts that represent a history of First Citizens innovations: • First bank in the region to approve mortgage loans to women • First to introduce ATMs • First to offer mobile and telebanking • First in the Caribbean to use online banking • First bank to introduce ‘The Card for a Cause’ - The First Citizens Pink Card where contributions are made to a worthy cause – ending violence against women • First local bank to issue a Visa Gold Credit Card • First local bank to receive the highest international credit rating from Standards & Poor’s and Moody’s Investor Services Inc. • First local bank to simultaneously hold the ranking of “Bank of the Year” and “Best Bank” bestowed by The Banker Magazine, Latin Finance and World Finance So, it turns out that innovation isn’t just about technology and gadgets, it’s also about how we explore where we’ve been, and how we determine where we go next. This is only part of the story of indigenous banking. Visit www.firstcitizensstory.com for more.
ABSTRACT BUSINESS GUIDE
BIZ HEALTH
ADDRESSING HOUSING IN T&T Written by Crystal Cassie
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and is the only factor of production fixed in supply, and it is only mobile between uses. The government in T&T takes several measures to remedy the gap between overwhelming demand and limited supply for housing, with varying success. The government is landlord to 63% of the country's land but the housing situation remains far from desirable, when it comes to both public and private housing. Private individuals who wish to own land and build homes face problems such as a long wait for town and country approval, and that’s if they have a qualifying income to afford purchasing land at rising, exorbitant prices. It has been expressed by some that the housing market prevents the ordinary working class individual from owning a home. So the next option is limited public housing. But successive governments have been accused of using it as an election gimmick, a political tool to gain votes. In 2015, Housing Minister Dr Roodal Moonilal has unveiled an aggressive plan by the Government to distribute close to 5,000 homes over the remainder of this year, at a pace of 100 homes a week until year’s end. This, however, if achieved, will still not make a substantial dent in the over 160,000 applications for Housing Development Corporation (HDC) homes. The government also said it will provide people, who have been renting houses built by a state-owned agency for more than 30 years, an opportunity to acquire these 8
homes for TT$100. There is also the issue of political interference in the distribution of state owned homes. The lottery draw in April 2015 boasted that everyone had an equal chance of being selected, with 500 applicants being successful. But some believe that the recent lottery draw used to generate names for houses may not be fair to those who have been on a waiting list for decades. Currently, 60% of applicants would be randomly selected, 25% would be selected based on ministerial discretion, 10% allocated for the protective services and 5% to senior citizens and physically challenged people. Since 2010, the Uff Report found that the public housing sector has been plagued with “scandalous” problems and “poor organisation and administration.” Housing projects by Udecott, the HDC and the National Insurance Property Development Company Limited (NIPDEC) throughout T&T have been suffering from a host of problems stemming from poor state management. Five years later, most of the criticisms remain valid. For instance, there is a wastage of resources and with it, escalating costs. Many proposals for construction end in fewer houses being built, delayed delivery, use of inferior materials, poor workmanship and poor construction on the natural land itself, leading to flooding. This reflects a major failure in terms of initial planning and investigation of the site. To exacerbate the problems, proper explanation of failure is hardly
ABSTRACT BUSINESS • MAY, 2015 • www.amgtt.com
ever given. Then there is sometimes the inevitable squatting situation for those who cannot afford. In May 2015, the government promised it would regularise all 60,000 squatters in 350 squatting sites, if given a second term in office. This in itself is a daunting task. It would be done in two stages: the distribution of certificates of comfort followed by the awarding of leases. But some squatters on protected lands must be relocated, which is difficult since roads, drainage and electricity is already provided in those communities. Minister of Land and Marine Resources Jairam Seemungal explained that aerial digital photography would be used to contain squatting and determine letters of comfort. So how can these current problems be directly addressed? In terms of private housing, not much can be done to manipulate demand and supply forces in the housing market. However, government policies can serve to put ceilings on interest rates for mort-
gages. In terms of squatting, the best route might be regularization, from an economic standpoint. So when it comes to public housing, many years of bureaucracy and inefficiency proves that the HDC that relies on Treasury funding cannot satisfy the demand for housing, which is expected to grow annually by 14,000. Perhaps to secure shelter for the T&T population the HDC cannot do it singlehandedly. There must be greater private sector investment, partnership and involvement in order to satisfy the burgeoning need and improve overall provision of housing. It is also wise to start looking at successful public housing models across the globe. Singapore has “safe and squeaky clean high rise housing projects.” Despite its problems, its housing model is one world governments can learn from, achieving widespread low-income home ownership without having to resort to dangerous lending practices, through ownership, policing and being mixed income developments.
ABSTRACT BUSINESS GUIDE
BIZ HEALTH
Exploring T&T's Most Underutilized Business Opportunities Written by Alicia Martin
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he recent downgrading of Trinidad and Tobago’s credit rating from stable to negative by the international agency Moody’s is a reflection of the impact of the recent drop in oil prices on the nation’s economy. According to Moody’s, this drop along with fiscal deficits and fiscal reform issues, as well as weak macroeconomic policies and a dearth of macroeconomic data, represent the major contributors to the downgrade. Ultimately the country’s failure to diversify the economy away from oil and gas has come back to haunt it in the wake of low energy prices. Nevertheless this crisis presents yet another opportunity for a much needed consideration of alternative industries, a need that has remained unmet for far too long. Some areas which provide the potential for economic diversification are: Agribusiness There is a need for the country to capitalize on the abundance of arable land as well as the warm climate. A strategic focus on this underutilized sector can lead to a reduction of the annual import bill which currently stands at approximately US$4 billion. It is therefore imperative for the relevant ministries along with academic institutions to embark on a strategic plan to strengthen this sector. Additionally an increase in local agricultural production can
lead to an increase in the production of a range of products including cocoa, honey, vegetables, livestock, rice, sweet potato and fruits which can be exported to neighboring countries. Attractive incentives, adequate support and educational initiatives can all be combined to boost this vital industry. Tourism While this industry has been experiencing moderate success, there remains room for major improvements within this sector. For instance, while the country is rich in natural beauty and resources, there is a need for greater investment into the physical structures such as hotels, spas and resorts. Furthermore, from a marketing perspective new initiatives with regards to the packaging of tourism products and the quality of the overall experience offered need to be undertaken. While our beaches are beautiful, our food delicious and our population friendly and warm, there is room for investment in tours and attractive activities like zip lining, and other outdoor and indoor adventures in order to successfully compete with other tourist destinations. Information and Communication Technology One of the country’s strengths is the existence of adequate infrastructure and an educated and skilled work force with regard to Information and Com-
munication Technologies. This sector represents strong investment potential as it pertains to Business Process Outsourcing. Appropriate and attractive incentives must however be provided in order to capitalize on this strength. The Tamana Etech Park for instance is a light eco-industrial park which was designed for Information and Communication Technology, agro-industrial and highvalue manufacture purposes.
This facility can be used for data creation, telemarketing, help-desks and contact centers as well. Film & Animation The Trinidad and Tobago Film Company and the recent success of the ‘Home Again’ film is an example of the potential for this sector to boost the economy. Increased production of film projects has begun to attract the interest of the public
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BIZ HEALTH
and investors alike. Once again the country’s natural resources as well as incredible and undeniable talent can be capitalized upon. Trinidad and Tobago possesses a cadre of highly skilled industry personnel and recent initiatives such as the offering of Certificates, Diplomas and Masters programmes in animation by the University of Trinidad and Tobago are commendable efforts to strengthen this industry. Additionally there is a further need to increase the provision of tax incentives for filmmakers and investors in general. Fortunately there has been an increase in local animation and film festivals in recent years along with a focus on advertising and Medical and Health Care PR campaigns but there is room for more growth. Culture Other potential areas within the creative arts include music, dance, theatre, TV, craft, mas, pan, visual arts and fashion. Like the Trinidad and Tobago Film Company, the Trinidad
OTHER POTENTIAL AREAS WITHIN THE CREATIVE ARTS INCLUDE MUSIC, DANCE, THEATRE, TV, CRAFT, MAS, PAN, VISUAL ARTS AND FASHION. LIKE THE TRINIDAD AND TOBAGO FILM COMPANY, THE TRINIDAD AND TOBAGO ENTERTAINMENT COMPANY HAS THE CAPACITY TO ATTRACT FOREIGN DIRECT INVESTMENTS IN RELATION TO THESE CULTURAL PRODUCTS and Tobago Entertainment Company has the capacity to attract foreign direct investments in relation to these cultural products. According to cultural activist, Rubadiri Victor, the Arts contribute approximately $1.7 billion dollars to the economy annually. However, Victor warns that while he calculates the Sector can easily earn $6 – 10 billion annually in quick time, this is wholly dependent on Best Practice enabling environment being set up. “ For the Creative and Cultural Sector to make money, all this country needs to do is implement the basic
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common sense enablers that the rest of the world has put in place since the 1920s and which the Artist Coalition of Trinidad and Tobago and others have battled for 50 years. There is no other way. Without local content quotas, an Arts Council, a proper Museum and National Trust system, without a proper Academy for the Arts matriculating students in our indigenous traditions as well as global fare, without a National Cultural Policy… without a merit-based strategy... without Guilds and proper funding for our representative organizations there is no money going
to be made here. Ever. The entire global artistic and economic Renaissance in Art and the Creative Industries has passed our country by for almost two decades because of the stubborn refusal of consecutive governments to simply do the right thing… We must implement the enablers. There is no other way.” Revolutions are often born out of crisis. Recent global economic downturns have inevitably impacted negatively upon our local economy. This however represents a golden opportunity to intensify diversification efforts. It should be noted that education must play a critical role in this endeavor. Furthermore entrepreneurship must also be a key ingredient toward these efforts. Adequate support must therefore be afforded to small and medium enterprises which fall within any of the major sectors identified above. The reversal of our negative credit rating may very well depend on it.
ABSTRACT BUSINESS GUIDE
MONEY MATTERS
MTEST And TTMA Sign MOU For New Apprenticeship Program
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Written by Rhoshenda Ellis
n Feburary 2015, Catherine Kumar, CEO of the T&T Chamber of Industry and Commerce, spoke in an interview after a breakfast meeting hosted by the Chamber to discuss the economic outlook for 2015. She said that the labour shortage continues to be a “big challenge” for the business community of Trinidad and Tobago. She suggested that the labour needs of the business community be aligned with the tertiary education in the country in order to solve some the challenges facing businesses who are complaining that the quality of workers now are not up to standard. In response to this interview, the Ministry of Tertiary Education and Skills Training (MTEST) has entered into a Memorandum of Understanding (MOU) with the Trinidad and Tobago Manufacturers’ Association (TTMA) and ten participating manufacturers on Tuesday May 26th, 2015 to address the shortfall of skilled, semi-skilled, technical and professional labour in the manufacturing sector. After weeks of factory tours conducted by Senator the Honourable Fazal Karim, Minister of Tertiary Educa-
tion and Skills Training and officials from the MIC Institute of Technology and the National Energy Skills Center, the program was developed and agreed upon by all parties. It was designed to increase the amount of jobs on the market, make a greater contribution to the National GDP and increase the country’s overall international competitiveness. The program will be executed as a two-tiered apprentice system for the manufacturing sector including the establishment of the On the Job Training (OJT) Manufacturing and an Export Manufacturing Apprenticeship Programme (EMAP) premised on the dual system of education and work-based training. This also includes the use of Workforce Assessment Centres and Worker Productivity Schools for the next seven years. This approach is being used to produce the required quantity and quality of skilled labour to satisfy the needs of the manufacturing sector. Speaking at the signing of the MOU, Minister Karim said, “We are the closest Ministry to the workforce and therefore we have a duty and a responsibility to ensure that all our
IT WAS DESIGNED TO INCREASE THE AMOUNT OF JOBS ON THE MARKET, MAKE A GREATER CONTRIBUTION TO THE NATIONAL GDP AND INCREASE THE COUNTRY’S OVERALL INTERNATIONAL COMPETITIVENESS 12 ABSTRACT BUSINESS • MAY, 2015 • www.amgtt.com
manufacturers have the requisite quality and competent workforce. We want to encourage you to utilize the services of all our institutions in close proximity. There should be a national rethinking of how we do business and it should be guided by the words accessibility and flexibility.” Dr. Rolph Balgobin, TTMA President, also expressed his satisfaction with the MOU and said, “developing the future of the workforce in the manufacturing sector through worker productivity schools which will be established at the facilities of manufacturers, will bring education, development and skills training into the workplace so that even as
people work they learn, they develop and they grow.” The MOU was executed by MTEST, TTMA, ACTT, COSTAATT, MIC, NESC, NTA, UTT, YTEPP, Advance Foam Limited, Arawak and Company Limited, Associated Brands Industries Limited, Blue Waters Products Limited, Cold Zone 3PL, Electrical Industries Group Limited, K.C. Confectionery Limited, Lifetime Solutions, S.M. Jaleel & Company Limited and SCL (Trinidad) Limited. This MOU will also facilitate the use of Workforce Assessment Centres and Worker Productivity Schools to support increased certification and productivity of the manufacturing workforce.
ABSTRACT BUSINESS GUIDE
FUTURE FINANCE
5 Reasons Why T&T Is Far From Being A Part Of The First World
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Written by Daniela Nandlal
he term first world is often encountered when referring to a country’s economic and social development. However what does this term really mean? According to Nations Online, the term ‘first world’ refers to “so called developed, capitalist, industrial countries, roughly, a bloc of countries aligned with the United States after World War II, with more or less common political and economic interests: North America, Western Europe, Japan and Australia.” Which simply means these countries are highly developed industrialized nations often considered the westernized countries of the world. However despite the fact that Trinidad is not considered a First World county, as it stands, no one can argue that Trinidad has not made tremendous strides in improving health care, reducing infant mortality rates, increasing literacy rates, improving education and raising the average standard of living of the vast majority of the population. Hence the country now falls under the “developed country” listing and is no longer referred to as a third world country. Nevertheless despite the progress made thus far, the country is still far from being a First world country and here’s why:
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Health Care - Health care is important to ensure a state of complete physical, mental and social wellbe-
ing and not merely the absence of disease or illness. However many of the public hospitals still lack fundamental equipment such as beds and proper security. In addition to this, conditions such as depression and mental instability are still quite taboo within the country and very little effort has been made to educate the population about these conditions.
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Crime and Corruption - People in Latin America, Africa, Asia and the Middle East all see crime and corruption as the greatest problems in their countries, according to the Pew Research Center survey. There’s no difference within Trinidad. Each day the line seems to blur between criminal and authority as there are several instances where those in authority have crossed over to the illegal side.
EACH DAY THE LINE SEEMS TO BLUR BETWEEN CRIMINAL AND AUTHORITY AS THERE ARE SEVERAL INSTANCES WHERE THOSE IN AUTHORITY HAVE CROSSED OVER TO THE ILLEGAL SIDE
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Differently-abled people – Maybe one of the most neglected sectors within Trinidad. Many places within urban areas such as the cities of Port of Spain and San Fernando have not renovated their busi-
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ness establishments to accommodate those with disabilities.
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Technology – Despite the evolution of technology, Trinidad has not quite evolved in this area. Many of the Ministry websites are still outdated while the traditional media is still predomi-
nately used with little emphasis on incorporating digital strategies into communication campaigns.
5
Primitive Areas – there are still several areas within the country that still do not have access to running water and electricity.
ABSTRACT BUSINESS
FUTURE FINANCE
FIRST WORLD SOLUTIONS TO THIRD WORLD PROBLEMS
What are some solutions which can be implemented to improve the economy?
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t’s debatable whether First World Solutions can be used to fix Third World issues as regards the economy. In fact many developmental theorists have argued that this approach should be avoided and efforts to apply particular initiatives wholesale have failed outright in some instances. A more feasible approach might be to analyze the relative success of developing countries such as the super achievers of East Asia: South Korea, Singapore, Taiwan and Hong Kong as well as the emerging economies of Brazil and India. One obvious strategy is the diversification of the economy from energy sector to the non-energy sectors such as agriculture, the creative industries as well as Information and Communication Technologies. In Trinidad and Tobago for instance the energy sector is responsible for approximately 50% of the country’s GDP and as a result any fluctuations in the global market necessarily have significant impacts on the state of the country’s economy. This is evidenced in the recent drop in oil prices and the negative outcomes which have been experienced. One lesson which is apparent from the analysis of developing countries is that an investment in the human, institutional and infrastructure capacity of Third World countries is essential. In other words the technical capacity of Third World countries must be strengthened and economies must be equipped with capable personnel who can create and implement the necessary strategies to drive the
Written by Alicia Martin
economy. For instance strategies geared toward increasing the pool of competent engineers can lead to more adequate infrastructure projects, increased foreign direct investment and more effective appropriation of foreign aid funds. Education, training, mentoring and the establishment of a competitive job market to absorb these talents is therefore imperative. Many Third World countries suffer from brain drain as technically skilled persons are lured to other countries due to a lack of proper incentives within their home countries. Governments must apply all efforts to circumvent this outward flow as well as create opportunities to retain the residence and the services of those individuals who would have migrated owing to a lack of opportunities for career growth and development. One example of this approach can be provided in the analysis of the steady economic growth of South Korea and India. Both countries advanced significant policies to build a cadre of qualified technocrats in the areas of science, technology and engineering. South Korea experienced an increase in the number of engineering graduates from 6,000
since related ratings affect the ability of countries to attract the attention of multinational companies and secure much needed foreign direct investment. Therefore there is a dire need for improvements as it relates to good governance, as a failure to advance improvements in this area results in the creation of a negative and unstable picture of our economies which does not augur well for trade and investin 1970 to 80,000 in 1990. India ment. on the other hand has seen an This article has only increased willingness of engi- scratched the surface of the deneering graduates to return to bate which looks at what can the country to work in the soft- be learned from the success ware and design industries. In of other countries as it relates the latter case, this has resulted to the improvement of Third in the establishment of India as World economies. The apprime location for the outsourc- plication of solutions gleaned ing of Information and Commu- from First World or developing nication Technologies. countries must be done with Of critical importance is the caution though, as one size does need to develop the spirit of not fit all. Trinidad and Tobago entrepreneurship within the for instance must explore its nationals of Third World coun- strengths, such as the existence tries. An educational agenda to of natural resources and weakincrease entrepreneurial skills nesses, its small population, as it pertains to starting, owning and determine to what extent and operating businesses must particular strategies might be be undertaken. This is a nec- feasible given these inherent essary component of the diver- conditions. Additionally while sification of the economy. Fur- there have been many formal thermore in a situation where papers on this topic, there has most countries cannot provide been minimal attempt to imthe quantity of jobs to satisfy plement well-informed ideas. the demands of the technical Furthermore it is critical to note graduates, such an approach is that economic development especially useful since it leads to must be sustainable and must the generation of jobs and pro- not pursued in isolation from ductivity, an essential aspect of social and educational advanceeconomic development. ments. Ultimately the goal of Additionally there must be a Third World Countries should concerted effort by Third World be to improve the standard of governments to put legislative living for their nationals and to frameworks in place to reduce reduce inequalities and the rethe levels of corruption within sulting social problems which it countries. This is imperative breeds. www.amgtt.com • MAY, 2015 • ABSTRACT BUSINESS 15
ABSTRACT BUSINESS GUIDE
TRUMP CARD
RICKY RAMPERSAD Record Breaking Branch Manager @ GLOC
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here is an old joke about insurance agents that goes: “The only way to tell if a broker is lying is to check if his lips are moving.” Such is the stigma surrounding sales agents or pretty much anyone who offers to handle your finances. While it may be true that some people are merely interested in the sale and will do whatever it takes to close it, there are a few people who truly go above and beyond and hold their clients’ best interests at heart. In actuality, this extra bit of caring and transparency goes a long way toward making clients comfortable and a comfortable client is more inclined to part with his/her money for a service. If there is one person who understands this quite well, it is GLOC Chaguanas Branch Manager Ricky Rampersad. His unique approaches to sales and management have resulted in large scale success for him and his team (with his branch continuously reaching and exceeding record targets). Rampersad has adopted a ‘people first’ approach to business and he utilizes technology in a way few in the country have been able to in an effort to function better. The Abstract Business Guide caught up with this trail blazer who in discussion showed why he holds the Trump Card. ABG: Congratulations on your team breaking yet another sales record. How does this achievement make you feel? RR: Thank you. We were told we broke a record in our first
year of operation and no other Branch did this. While it feels good, breaking records is no new news to us. Prior to being appointed a Branch Manager, our Unit’s performance over the years was Beyond Branch Standards. When we were appointed a Branch, we continued doing what we were doing only better. Actually, I was supposed to be appointed the position of Branch Manager long before. However, I chose not to accept that position, because I wanted to work on a model that when we were appointed a branch we could take off like what we are doing now. ABG: What is the mission of your particular branch? RR: Our Mission is to become the "Branch of Choice" where everyone who crosses our path enjoys the experience interacting with us. This is possible because we are passionate about making a difference in everyone's lives through regular collaboration and interaction. Most important, this is all done with a smile:) ABG: What was your plan for achieving this mission? RR: Setting out to make a difference in everyone’s lives was really fun so we set out to "Change things a bit”. If we were to become the "Branch of Choice”, then it was so important we had to have the right people on our team. This was really very simple, since we are extremely passionate about why we do what we do, it was important to find persons who were equally passionate about our industry. We believe our entire team is passionate about our industry and
understand why we do what we do. Creating Wealth, Financial Security and Managing Risk is a daily part of everyone’s lives at the Branch. ABG: How do you go about assembling such a team? RR: I try to surround myself with ‘Creatives.’ Creatives are people that think and solve problems. They must also possess a great attitude and a smile. Once you have a great attitude, I can teach you what you need to know to be successful. ABG: What tools did you use to achieve this goal? RR: The process was a bit of a natural evolution for us as we
moved from a unit to a branch. Being now on our own allowed us to do new things, make mistakes and create a learning environment. We are termed a “techie” branch and continue to invest in systems, processes and people to ensure our business model is sustained. We are systems driven and deploy multiple processes for all parts of our operation. Being 100% cloud based has helped us to achieve this goal as we were able to select career advisors by redefining the selection process, understand our data thereby able to do predictive analysis that leads to cross sell opportunities with advisors. We were able to keep our
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ABSTRACT BUSINESS
TRUMP CARD
agents focused in the field serving people and not in the office. We were able to deploy several tools for submission follow ups, case management and internal escalation rules where everyone got involved. Being process driven and creating structure gave us the edge with our agents, staff, clients and head office. Also, we were able to keep our environment positive & fun, promoted team work, rewarded what matters and most important created the culture of being excited to come to work!!! In addition, we redefined Agent Activity Management Making activity reporting fun!!! This represented the lifeblood of our operation and by finding a collaborative structured way to get the activity from agents made it easy for us. ABG: Ultimately, what is your Vision for the branch? RR: That our Branch model will redefine the traditional structure as emphasis will solely be placed on key performance indicators with proper measurement tools. There has never before been a time when you can more or less predict the probability of success and failure in the palm of your hand and I am talking about mobile. We are and will continue to lead in client and agent collaboration, becoming a lean operation where
THERE HAS NEVER BEFORE BEEN A TIME WHEN YOU CAN MORE OR LESS PREDICT THE PROBABILITY OF SUCCESS AND FAILURE IN THE PALM OF YOUR HAND AND I AM TALKING ABOUT MOBILE the focus is communication. Whether it be mobile, virtual or in person, our vision is to always be there. ABG: What sets you apart from others in the industry? RR: When I look back at my life whether it be at school or anything, one thing I always had was ambition. That is something a lot of young people today lack. They have everything accessible to them, the internet, free education, but they don’t have the drive. I always had that. I didn’t grow up with means. I grew up with my grandmother and things were hard. I used to walk up Calvary Hill to Holy Cross College to go to school. Things were not easy, but when I put my mind toward something, I get it done. Another thing that sets me apart is technology. I am willing to use technology to my advantage and break the usual mode of how people operate. I try to stay current with technology and see how I can apply it to my business dealings. Time management is very important and if I can access everything on my phone and MacBook I don’t
18 ABSTRACT BUSINESS • MAY, 2015 • www.amgtt.com
need to spend hours in traffic or in meetings at the office. I can count on my hands how many times my staff has seen me at the office in the last year. Everything is cloud based, so I can see what is going on at the office at any time and procedures are in place so that problems can be solved without me having to be present. ABG: Success is a by-product of sacrifice. How has your journey toward success affected your life? RR: I am married for the second time around. My wife is a practicing dentist. I actually met her in spin class and practically I had her spinning. We also have a beautiful daughter. She is two years old. We also have another one on the way. I was previously married for two years with a nineteen year old son from that marriage. After that, I spent fifteen years on my own before getting married again. During those fifteen years I achieved a lot of things, but I realized that having a Benz or Range Rover or a big house with nobody to share it with is not worth it. If I was achieving that level of suc-
cess now at this point in my life and single it would leave me empty. I would be attending Christmas functions and seeing everybody with their wives and I wanted to make that wrong right. I did so five years ago and it was the best thing I ever did. At the end of the day, success is not really measured by the material things we have. ABG: Ever felt like giving up at any point in your career? RR: Yes. Early on during the first four years of my career it was very challenging. When you just come into this industry and nobody is taking you on it can be unnerving. I knew that the business is about helping people and in order to help people I had to specialize my skills. I went on every workshop I could and took every course available to help me better understand the market. Now I always look back and wonder “What if I had walked away from this path early on?” These days I can honestly say that despite the sacrifices I have never felt like I worked a day in my life. ABG: Any closing words? RR: Thanks Guardian for believing in us. Thanks to my agents and staff for their commitment and belief in the Branch’s vision. To all our dedicated agents, staff and clients a hearty congratulations!
ABSTRACT BUSINESS
BIZ TECH
IS T&T EXPERIENCING A TECHNOLOGICAL BOOM? Written by Leah Lewis
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rinidad has experienced an enormous amount of growth within our economy and by extension the service industries within the last two decades. There was talk of vision 2020 which was replaced by the Medium-Term Policy Framework (MTPF) entitled Innovation for Lasting Prosperity. These strategic plans were geared towards improving our quality of living through the improvements of our industries as well as our service sectors. But what comprises the service industry and how has technology been incorporated to boost it if at all? The service sector here in Trinidad is difficult to encompass. However, it can be outlined into primarily consumer-oriented (those that offer a service directly to a consumer), primarily business-oriented (those that provide a service directly to another business) or mixed (those that provide services to both businesses
WHEN IT COMES TO THE BANKING SECTOR WITHIN TRINIDAD, THEY SEEM TO BE FAIRLY AHEAD OF THE GAME IN TERMS OF THEIR INTEGRATION OF TECHNOLOGY and individual consumers). Services offer a certain level of transformation. For instance, a service may transform a physical object through the process of repairing, altering, or simply improving its quality. In the same way custom made clothing, a remodeled home or an appliance would involve transforming a physical object. Similarly, service division jobs may also change a consumer. Examples of changes to consumers are education, whereby the consumer learns knowledge or skills; health care, in which a person's health is improved; or personal services, such as when a hairstylist styles a consumer's hair. A change to an organization is a third type of transformation involved in the service industry.
For instance, a management consulting firm may make changes to an organization's structure or business processes to improve it. To this extent, several of our local service industries have started incorporating the use of technology as a medium to make the receipt of services that much more comfortable and efficient. When it comes to the Banking sector within Trinidad, they seem to be fairly ahead of the game in terms of their integration of technology. Banking truly rests at your fingertips. With online banking one can access one's account balance, transfer funds and even pay bills. You can also receive text messages with personal account information or call to gather information and make a few transac-
tions. Utilities such as T&TEC and WASA also offer you the ability to cut long lines and pay your bills online. WASA goes a step further to also provide billing forms such as service connection and license forms. The National Training Agency of Trinidad and Tobago has recently incorporated online registration for OJT. This service ensures a quicker placement time and the ability to acquire a job within your relevant field of interest. Even the police service has included technology into their service somewhat. You can now make a report online and acquire information on special licences (such as a bar or firearm license or license to operate a security firm) and permits (for public marches, public meetings, raffles/bingos, street collection/ control act). Of course there is always room for improvement as several of their data collection practices remain outdated. Nonetheless, it’s a step in the right direction.
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ABSTRACT BUSINESS GUIDE
BIZ TECH
The Role Of Social Media In The Job Seeking Process Written by Rhoshenda Ellis
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oday, social media plays a huge role in the lives of every individual regardless of age, income bracket, race or social class. According to a new study done by Pew Research Center, “92% of teens report going online daily – including 24% who say they go online ‘almost constantly’." This is aided by the constant access provided by mobile devices like smartphones. With the increased use of the internet, not only are job seekers posting their statuses, but businesses have taken to improving their corporate images by creating an online page and attracting users to ‘like’ their pages and ‘retweet’ their status. Companies also post jobs online via website like CaribbeanJobs. com and JobsTT.com which makes the job search process quite easy for the employee. However, having posted jobs online, many companies include an Internet search of the potential employee as part of the interview process. This means that companies have the ability to screen applicants based on their Facebook, Twitter and other social media accounts. Therefore, users must be cautious about how they present themselves on the Internet. CareerBuilder. com conducted a survey in 2013 to find out how and why com-
panies incorporate social media into their hiring process. They found that 37% of employers use social networks to screen potential job candidates. That means about two in five companies browse social media profiles to evaluate an employee’s character and personality–and some even base the hiring decision on what is found. On the other hand, many businesses try to avoid getting too personal with the applicants search online because of legal reasons. They are concerned with legal risks or discovering information about protected characteristics like age, race, gender and religious affiliation when perusing candidates’ social media profiles. However, ignoring social media entirely is extreme and a bit of an overreaction. Once a company is able to minimize the legal risks, business benefits can be maximized. The perfect candidate can be selected for the position because of information found on their social media profiles. There are laws in place to ensure that the job recruitment process is a fair one for all applicants and to protect the candidates themselves. Now that companies are using social media to hire, it is advised that candidates be wary of what they post and do not post and what they make public and
NOW THAT COMPANIES ARE USING SOCIAL MEDIA TO HIRE, IT IS ADVISED THAT CANDIDATES BE WARY OF WHAT THEY POST AND DO NOT POST AND WHAT THEY MAKE PUBLIC AND DO NOT MAKE PUBLIC ON THEIR PROFILES 20 ABSTRACT BUSINESS • MAY, 2015 • www.amgtt.com
do not make public on their profiles. Rosemary Haefner, vice president of human resources at CareerBuilder warns, “If you choose to share content publicly on social media, make sure it’s working to your advantage. Take down or secure anything that could potentially be viewed by an employer as unprofessional and share content that highlights your accomplishments and qualifications in a positive way.” Another word of advice is to tailor your social media persona to the future that you want for yourself. If you are into fashion make sure your social media profiles show that you are a creative person, if you are into business, ‘like’ and ‘follow’ a few
business moguls on Instagram and Facebook. If you would like a job in communications, have a blog site to send your employers to when you apply for a job and make sure there are no spelling errors. Social media can be an extremely useful or detrimental tool in the job recruiting process however; it is completely up to the applicant and how they choose to represent themselves online. Be careful of what you post because you never know who will read you statuses and where they will end up. What you put on the Internet is there for everyone to see so it is up to the job seeker to make social media work to their advantage.
ABSTRACT BUSINESS
PERSONAL FINANCE
TRINIDAD AND TOBAGO IS PROMOTING AN ENTREPRENEURIAL CULTURE
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n developed and developing countries worldwide, small businesses are making a mark on the economic landscape due to their strategic importance. They are crucial to employment creation, poverty reduction and economic diversification, revenue for the government and more. In Trinidad and Tobago the number of small businesses has increased over the last decade. In context, a small business is defined as a business which has 6-25 employees, assets of TT $250,000.00 to TT $1.5 million and annual sales between TT $250,000.00 - $5 million. Based on these criteria, the Central Statistical Office (CSO) estimates that small businesses constitute over 70 % of all registered businesses in Trinidad and Tobago. Government offices such as the Ministry of Legal Affairs (MLA) are making it easier and timely to register a business. Government offices such as the Ministry of Small and Micro Enterprise Development, through the National Entrepreneurship Development Company limited (NEDCO), the National Integrated Business Incubator System (IBIS) and the private sector are expanding the network of business integration, offering financial stability, loans and competitive interest rates to start a business. Not to mention social media/online small businesses (i.e. Facebook), which are growing in popularity. The increasing number of small businesses leads to increased employment, which is in turn helping to reduce poverty. Dominating the small business market in Trinidad and Tobago are online and walkin clothing, shoe and jewelry
Written by Shera Diaz
stores, food outlets, vehicle and parts businesses, retail stores and more. Trinidad and Tobago is known to have an event taking place almost every day and online as well as walk-in jewelry, shoes and clothing stores are becoming increasingly popular. Online stores have little to no overhead expenses when compared to walk-in stores and Ecommerce implementation has made it possible to showcase products and services along with shopping cart integration, also making it easier for the consumer to make payments online while the business owner offers a real-time experience. The convenience that online shopping offers, has led to this becoming become a major avenue for consumers to find what they need. Technological advances can be an advantage or disadvantage to the business owner. This is a critical factor for competitive-
variety of products for current and potential customers, which will gain revenue while encouraging consumers to purchase the products. Food outlets are also a growing small business in Trinidad and Tobago. Consumer’s active lifestyles are making it easier for business owners to make a profit. More food outlets equal more choices for the consumer but competition for business owners. Food is necessary to survive and business owners have this to their advantage. Foreign used vehicles and parts businesses are also blooming in Trinidad and Tobago. This type of business results in stronger relationships with foreign countries, while making it easier for local consumers to purchase vehicles at an affordable price. ness in today’s knowledge drivThe Government of Trinien society. A click of a button dad and Tobago and other Noncan arrange the purchase of an Government Organizations are item or find out the cost of a ser- working to build and sustain vice by the provider. Technology business-consumer relations lois now in the palm of a custom- cally, regionally and internationer’s hands so they can review ally. Trinidad and Tobago lies on products online before purchas- the periphery of both North and ing. This has become the trend, South America with access to as online shopping offers 24/7 over 600 million consumers. shopping at your fingertips. On Thursday May 14th, Consumers no longer have to 2015, the Ministry of Labour wait for the stores to open or ex- and Small and Micro Enterprise perience the hassle of getting to Development, NEDCO and the the store before it closes Caribbean Industrial Research Retail businesses such as institution announced the signones selling hair products and ing of a Memorandum of Underweaves are also dominating the standing to provide funding for business market; as the saying the establishment of a Business goes "Your hair is your beauty." Hatchery as part of CARIRI, Both women and men are pur- Centre of Enterprise Developchasing hair extensions, wigs ment (CED)’s business incubaand hair products to enhance tor operations. Small business their image or achieve a differ- owners now have more busient look. On the business side, ness opportunities and consumbusiness owners are provid- ers now have an opportunity ing incentives for consumers to to choose from a wide range of shop. Owners are providing a businesses. www.amgtt.com • MAY, 2015 • ABSTRACT BUSINESS 21
23.
ABSTRACT BUSINESS
DEVELOPING THE ENTREPRENEUR
IMPROVE YOUR ENTREPRENEURIAL CREATIVITY
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reativity is one of the most underrated aspects of business. This is unfortunate since creativity is the major driving force in entrepreneurship. While the products one sells may not be novel, the way in which it is marketed and the creativity in the customer service can propel it to new heights. This article shows how to maximize the creative juices within a company in an effort to fulfill entrepreneurial capacity. Colour can Boost Creativity Color can help your creativity skyrocket. It may sound frivolous, but it actually does work. Smart employers know that the mood their office décor sets directly impacts the mood of their staff. Calm, neutral colours make them more relaxed and a less stressed worker can contribute more than one whose mind is burdened. Similarly, scientists have posited that brief glimpses of green can improve your creative performance! In another study it stated that seeing red or blue can have different effects on our cognitive performance: red helps us with detail-oriented tasks where we need to focus, whereas blue enhances creative performance. With that said, it might be wise to incorporate blue and green into your office surroundings. It doesn’t necessarily mean you have to paint your office blue or green. Accent pieces can subliminally add to the décor and creativity effectively. Keeping a Journal This may seem outdated, but journals still have their place among us. For some, this form of diary-keeping keeps us sane while for others it is merely a way to help remember stuff
and organize schedules. In any event, having all your ideas in one place, like a journal or folder, is a great way to get everything into one ‘pot’ to start simmering. Having your ideas organized and easily accessible makes it easier to jot down quick thoughts or add and expand on past ideas. The great thing about this format is that technology makes it even easier. You don’t even have to look for a pen anymore. Audio journals can be kept as voice notes on your smart phone. Working in Reverse Okay, we know this sounds bad, but working backwards is actually a good thing. It can be quite beneficial to creativity to set a long term goal first, then create a plan for how to achieve it. Don’t just dive into tasks. When it comes to keeping your creative spark bright, working backwards can provide more unique and often smarter solutions to problem solving. It forces you to think bigger as you start the process closest to the actual goal.
Thrive On Diversity One of the world’s biggest problems is acceptance. Bigotry and racism is rife throughout the globe and as you can see, nothing good comes from it. It is important to be diverse overall and especially when it comes to business. Leveraging diversity is a powerful skill. However, we aren’t just talking from a cultural perspective (though culture does shape our thought process). Here we are talking about diversity of thought and utilizing different ways of thinking. As a leader or team member, you need to recognize where you and your team are strong. Similarly, you need to know your weaknesses. If you know you are not adept at one part of the creative process, seek others who are. Bounce thoughts off them and listen to the new directions their different thinking can provide. Challenge yourself to be open to other’s perspectives. This is a sure form of boosting the creative force behind any project.
Breaks Are Necessary We spoke briefly about how stress can addle the brain. That is why it is important to take breaks in order to foster creativity. The best creative thinking comes when the brain has time to relax, make new connections and see things in a new way. This means that frequent and scheduled breaks can actually boost the creative spirit in the workplace. It should also be noted that taking breaks does not only apply to actually being in the office. Creativity is often sparked by nature and experience. Well-travelled people are often more creative than those who are not. Schedule occasional field trips. Get out of the office or wherever you run your business, and take your employees to visit other companies, conferences or even just parks. This can get them (and you) out of their everyday comfort zone and into a space where new thoughts and ideas can take hold.
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ABSTRACT BUSINESS GUIDE
DEVELOPING THE ENTREPRENEUR
Five Professional Communication Mistakes
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ommunication is the essence of customer service. It is also how creative ideas become innovation as thought becomes substance (often with the help of others). However, many people shoot themselves and their businesses in the feet by making these avoidable communication mistakes.
Improper Preparation Poorly-prepared presentations, reports, or emails frustrate your audience and, over time, damage your reputation. This is why it's essential to prepare and plan your communications carefully. First, set aside time to plan your communication thoroughly. Consider using tools like the Rhetorical Triangle and Monroe's Motivating Sequence to create a credible, intelligent, and compelling message that appeals to your audience's emotions, as well as to their intellects. Leave time to proofread, to find images, and to check that documents are compatible with your audience's software. Then, if you are delivering a speech or a presentation, rehearse thoroughly, so that you are fluent and inspiring. Not Following Up You send out an email asking a
co-worker to do a task and you assume that they received it. Worse, you assume that the task was completed without following up. Make a note to follow-up with an email if you haven’t received a confirmation from your recipient. If you need to, pick up the phone or go down to their office. Until you’re absolutely sure that the task is underway, don’t check it off from your todo list. Flirtatiousness Even though some believe flirting can be a currency in the office, nearly half of executives say it will undercut your professional reputation, regardless of whether you’re a man or woman. Flirting–the subtle suggestion of the possibility, but not the probability, of something sexual occurring between two individuals–can easily be taken the wrong way. Lack of Polish This is especially the case where written communication is concerned. Typos, careless errors, and simple grammatical mistakes won't leave the positive impression that you want to engrain in your customers' minds about your company and your brand. You must also recognize that there are differences
MAKE A NOTE TO FOLLOW-UP WITH AN EMAIL IF YOU HAVEN’T RECEIVED A CONFIRMATION FROM YOUR RECIPIENT. IF YOU NEED TO, PICK UP THE PHONE OR GO DOWN TO THEIR OFFICE 24 ABSTRACT BUSINESS • MAY, 2015 • www.amgtt.com
between quality spoken versus written communication and presentations. Perhaps you're a great speaker and effectively present your ideas through one-on-one meetings and presentations. Don't let your written documents and follow-up destroy the positive impression you initially created. Poor Body Language - Overgesturing: This sends a message that you are not totally at ease with what you are saying. You try to overcompensate for what your mouth can’t muster with your hands and it often results in diminishing your power and making you look like someone who is flailing or directing traffic. - Talking too quickly: This is another mistake that is all too common. Excitement
and nervousness can lead to speed-talking. This can cause people to miss your point or ask you to repeat yourself. It is important to pace yourself. - No Eye Contact: This is possibly one of the most detrimental types of bad body language. Not maintaining eye contact makes it seem as though you are lying or unsure about yourself. This communication faux pas is as bad as slouching or dozing off in a meeting. These issues can be easily fixed. Some may take a little more effort to correct than others. All in all, it doesn’t matter, how it is done… these communication mistakes must be remedied. Hopefully this article helped to spark the fire that brings you to change.
ABSTRACT BUSINESS GUIDE
GLOBAL FINANCE & WORLD REVIEWS
China's Yuan No Longer Undervalued, Says IMF
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hina's currency "is no longer undervalued", according to the International Monetary Fund (IMF). The US has long suggested that China has manipulated the value of the yuan to boost its exports. Undervaluation has been a problem in the past, says the IMF in a statement, but this is no longer the case. Substantial "appreciation over the past year has brought the exchange rate to a level that is no longer undervalued", it says. The IMF says China should focus on creating full exchange rate flexibility so that the value of the yuan adjusts as the country grows. "We urge the authorities to make rapid progress toward greater exchange rate flexibility, a key requirement for a large economy like China's that strives for market-based pricing and is integrating rap-
idly in global financial markets." The IMF believes that China should aim to achieve a floating exchange rate within the next two or three years. "Greater flexibility, with intervention limited to avoiding disorderly market conditions or excessive volatility, will also be key to preventing the exchange rate from moving away from equilibrium in the future." Beijing has said that it wants the yuan to become an alternative reserve currency to the US dollar. Slowing growth The IMF's comments came after a two-week visit by one of its delegations to Beijing, Shanghai and Taiyuan. The delegation also commented on China's slowing economic growth, which it said was "a by-product of moving the economy away from
the unsustainable growth pattern of the past decade". It expects China's economy to grow by 6.8% in 2015, almost matching the government's target of 7%, with growth then expected to slow to 6.25% in 2016. "China is transitioning to a new normal, aimed at safer
Vatican Bank Makes Big Profit
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t's been a good year for the Vatican bank as it works to scrub clean the sins of the past. Stronger income from trading securities including bonds and a fall in operating expenses drove a sharp rise in profits last year. Net profits hit ¤69.3 million ($76.1 million) in 2014, up from ¤2.9 million ($3.1 million) a year earlier, according to the bank's annual report released Monday. The bank said the improvement was "essentially the result of financial market developments."
The bank serves thousands of Catholic charities, religious orders and dioceses around the world. For the past several years, it has been trying to shake off a reputation for murky dealings that dates back decades. It has been hit by a criminal investigation, high-level resignations and international accusations that it wasn't doing enough to prevent money laundering. Under new management, the Institute for the Works of Religion -- as the bank is formally known -- has shed hun-
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dreds of customers, dealt with past investment losses and improved transparency. It currently has around 15,000 mostly institutional clients. More than 4,000 accounts were closed over the past year, 554 for not meeting the bank's criteria. In the report, bank president Jean-Baptiste Douville de Franssu said that "significant progress" had been made in adapting to the new regulatory environment, reviewing its interaction with tax authorities, and addressing the "misuse" of the past.
and higher-quality - even if a bit slower - growth," said the IMF, adding that the change was "both challenging and necessary". "The labour market has remained resilient despite slower growth, which, in turn, has supported household consumption."
ABSTRACT BUSINESS GUIDE
STOCK WATCH
May Stock Summary Courtesy The Trinidad and Tobago Stock Exchange
Written Report for Monday, 25 May, 2015
O
verall Market activity resulted from trading in 9 securities of which 1 advanced, 1 declined and 7 traded firm. Trading activity on the First Tier Market registered a volume of 60,559 shares crossing the floor of the Exchange valued at $377,632.51. TRINIDAD CEMENT LIMITED was the volume leader with 19,850 shares changing hands for a value of $54,587.50, followed by JMMB GROUP LIMITED with a volume of 18,346 shares being traded for $9,906.84. FIRSTCARIBBEAN INTERNATIONAL BANK LIMITED contributed 10,150 shares with a value
of $51,054.50, while SAGICOR FINANCIAL CORPORATION added 6,297 shares valued at $37,844.97. CLICO INVESTMENT FUND enjoyed the day's sole price increase, climbing $0.04 to end the day at $22.55. Conversely, JMMB GROUP LIMITED suffered the day's sole decline, falling $0.01 to end the day at $0.54. CLICO INVESTMENT FUND was the only active security on the Mutual Fund Market, posting a volume of 29,468 shares valued at $664,368.35. CLICO INVESTMENT FUND advanced by $0.04 to end at $22.55. BOURSE BRAZIL LATIN FUND remained at $9.50.
FORTRESS CARIBBEAN PROPERTY FUND LIMITED SCC - DEVELOPMENT FUND remained at $0.67. FORTRESS CARIBBEAN PROPERTY FUND LIMITED SCC - VALUE FUND remained at $1.70.
PRAETORIAN PROPERTY MUTUAL FUND remained at $3.10. The Second Tier Market did not witness any activity. MORA VEN HOLDINGS LIMITED remained at $14.97.
Stocks Advancing: Security
Volume
Closing Quote ($)
Change ($)
29,468
22.55
0.04
Volume
Closing Quote ($)
Change ($)
18,346
0.54
-0.01
Volume
Closing Quote ($)
TRINIDAD CEMENT LIMITED
19,850
2.75
FIRSTCARIBBEAN INTERNATIONAL BANK LIMITED
10,150
5.03
SAGICOR FINANCIAL CORPORATION
6,297
6.01
FIRST CITIZENS BANK LIMITED
5,557
35.80
REPUBLIC BANK LIMITED
200
115.00
GUARDIAN HOLDINGS LIMITED
146
14.20
13
17.30
CLICO INVESTMENT FUND Stocks Declining: Security JMMB GROUP LIMITED Stocks Trading firm: Security
NATIONAL ENTERPRISES LIMITED 28 ABSTRACT BUSINESS • MAY, 2015 • www.amgtt.com
In Monday's trading session the following reflect the movement of the TTSE Indices: * The Composite Index declined by 0.17 points (0.01%) to close at 1,159.95. * The All T&T Index remained at 1,969.40. * The Cross Listed Index declined by 0.05 points (0.11%) to close at 45.99. * The Composite Index comprises all Ordinary companies. * The All TTSE Index comprises Trinidadian companies only. * The Cross Listed Index comprises companies originating outside of Trinidad & Tobago.
Abstract B.G Is Published By Abstract Media Group, Premium Commercial Complex, San Juan, Trinidad, W.I. • Tel: (868) 638 1156/9 • Fax: (868) 638 1160. Printed By The Office Authority - Printing Division And Distributed By AMG