MANAGEMENT by Sammi Nem

Contents

December 2011 - January 2012

REGULARS

2 First Thoughts 5 Perspective 6 Your Feedback 10 In the News FEATURES

TOP WOMAN Prof. Waceke Wanjohi

15 18 22

Opinion News Analysis Cover Story

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30 32 38

CEOâ&#x20AC;&#x2122;s PLATE

Sumayya HassanAthmani, MD National Oil Corporation of Kenya

2012 Thoughts Tactics Top Woman

BUSINESS MATTERS

46 50

SOWING A GOOD HARVEST

Martin Mwai, proprietor, Morrisons and Pace Co. Ltd

New Knowledge The Entrepreneur Hands on Management

LEISURE

Health

Eat Out

David Nene Kalinga, CEO, Capital Colours Creative Design Ltd.

Travel

FIRST THOUGHTS

December 2011– January 2012 KSHS 300 TSHS 6,000 USHS 8,700 RWF 2,500 US$4

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Looking aheadLETTING BYGONES BE BYGONES Living the past is a dull and lonely business, looking back strains the neck muscles, causes you to bump into people going your way (EDNA FERBER 1887-1968)

2012 Money Talks with ALY-KHAN

SATCHU

BUSINESS & ETIQUETTE Your image at the office’s christmas party 2012 THOUGHTS Trends and Bucket lists

PUBLISHER THE KENYA INSTITUTE OF MANAGEMENT, Luther Plaza, 2nd and 3rd Floor,

By: MIRIAM CHEGE

ou probably are now engrossed in doing an audit for the year that has been, to establish what your successes and gaps were. This is good. We all need to do that. As I critically analyze my year, I am glad that I was able to achieve a number of milestones. I also took a number of risks and they certainly bore fruits. I on the other hand recognize that in other areas I failed to meet my set goals. While I started the year with a lot of enthusiasm and excitement, I cannot say that I have been able to maintain the same momentum in the year. At one point I felt very exhausted but I had to find ways of dealing with it. You probably had a fantastic year and that is great. I am also certain that even in a great year, there are several things that did not go as per the plan. You probably have in your to-do list two or three things that were left untouched or others done quarter way or halfway. Time moves very fast and you probably are wondering how come some people seem to be having more time than you do. Regardless of what the year was like, I believe what is critical is focusing ahead. Don’t wallow in successes Like the legendary lizard that jumped from a high Iroko tree and after realizing that no one was in time to praise it, you probably had the best breaks this year and like the lizard, rewarding yourself for it is justified. Of course it is a good idea but caution should be taken to move on. If you become fixated onto the past successes you might just block your vision into thinking that that is the highest you can jump and therefore lower your benchmarks and slowly

MANAGEMENT

regress to average results or output. This tremendous achievement that you have realized so far should just give you a fresh impetus to focus on bigger and greater success that can come with strategic and calculated decisions and working hard and smart as well. Unending self congratulations may derail your next big move.

Nyerere Road/University Way Roundabout P.O. Box 43706 - 00100 Nairobi, Kenya. Tel: 020 2535277 Email: kim@kim.ac.ke; Website: www.kim.ac.ke CHIEF MANAGER, MEDIA SERVICES AND MEMBERSHIP UNIT: Miriam Chege (mchege@kim.ac.ke) EDITOR: Carole Kimutai (ckimutai@kim.ac.ke) STAFF WRITER: Murugi Ndwiga (ndwigam@kim.ac.ke) INTERN: Mumbi Njoroge (mnjoroge@kim.ac.ke) DESIGN & PRODUCTION Nelson Ngaara (ngaara@kim.ac.ke)

Don’t wallow in past failures If you did not achieve the set targets, you should not mourn endlessly. Quickly learn from the failures and move on. Failure has a way of taking one’s energy, dimming dreams, killing morale and just instilling fear. The more you dwell on what should have happened, the more you stop thinking on what can be done in the future. My personal experience is that wallowing in past failures can negatively impact on your future undertakings, constraint your relationships as you blame others for what they failed to do. This leads to lethargy and inertia and the forward journey grinds to a drastic halt.

Jessy Mundia (jmundia@kim.ac.ke) CONTRIBUTING WRITERS: Sammi Nderitu, Mumbi Njoroge, Aaron Jones, Bob Paterson, Kate Kibaarah, Olive Burrows, Gilbert Ng’ang’a, John Dembe, Caroline Munywoki, Daniel Mayabi, Beth Kimani, Dennis Mabuka, Nana Wanjau, Charles Kimani, Macharia Kagicha, Mercy Ben, Derek Bbanga, Ali Mohamed, Mikul Shah, Ahmad Suleiman, Patricia Muigai, Joseph N. Nyanchama, David Nene Kalinga, Eileen Laskar, Susan Bantu, Al Kags, Macharia Kihuro, Stephen Mburu, Thomas Odol COVER PHOTO: Allan Gichigi PHOTOGRAPHERS: Sammi Nderitu and Julian Njoroge ADVERTISING SALES: Anthony Githendu, Titus. C. Omondi, Elizabeth Mbinya, Mary Ngumbi and Alex Kamore CO-ORDINATOR, MANAGEMENT DISTRIBUTION, ADMINISTRATION & CIRCULATION: Laura Wahinya (lwahinya@kim.ac.ke) EDITORIAL BOARD: Dr. Tom Odhiambo, Fatuma Mohammed, Daniel Obam, Joe Otin, Barrack Muluka, and Jerry Okungu.

Looking ahead I would like to invite you to focus ahead. Think of the many goals that you would want to achieve at a personal front, work targets that you would like to set and achieve in the coming year and opportunities that exist around you and organize yourself for a better and bigger 2012. As you do this, think selfdevelopment because it is in bettering your skills, relationships, networks, competences and exposure that you can make better contribution as a team leader, colleague, business leader, spouse, parent and a community person. Keep on keeping on. Email: mchege@kim.ac.ke

DECEMBER 2011-JANUARY 2012

PRINTED BY: Colourprint Ltd KIM COUNCIL MEMBERS Alfred Lenana

- Chair

Salome Gitoho - Vice Chair Dan Awendo

- Treasurer/Chair, Finance and

Investment Committee Stella Muendo - Company Secretary Phillip Kisia Richard Konzoro Isiaho Esther Jowi Prof. Tuikong D.K Serem Dr. Wilson Soy Richard Gikuhi Alice Achieng Owuor Dr. Jonathan Ciano David Muturi

EXPERT WRITERS ALI MOHAMED Mohamed is regarded as part of the second generation Islamic bankers’ practitioners who come with a solid academic background in Islamic Finance. He has several years of International experience in Banking and most specifically in Islamic finance and investment banking and is currently Sharia’a Auditor and Advisor of the largest Islamic Investment Bank in Qatar. Mohamed is the founder of Mash Consulting Group Ltd (MCG) in Kenya specializing in providing Sharia’a financial advisory services, supervision, Sharia’s auditing, revision and training for Islamic and Conventional financial institutions.

DEREK NBANGA Derek is an Image Consultant and runs Public Image, a company that helps professionals and companies enhance their soft skills, professional image and communications skills. You can follow his blog publicimageafrica.blogspot.com Email: Derek.bbanga@ publicimageafrica.com

Email: md@mashconsultinggroup.com

EILEEN LASKAR Eileen Laskar is the founder and director, intellect Consulting Ltd. She is a certified executive couch and a certified professional career couch.

MACHARIA KIHURO Macharia is a risk management practitioner at Panafrican housing Financial Institution, shelter Afrique, headquartered in Nairobi. Email: jkihuro@yahoo.com

Email: Eileen.laskar@careercenter.co.ke

AARON JONES Aaron is the MANAGEMENT magazine roving writer on matters of customer service. He is the Founder and CEO of Jones Consulting, a Kenyan company that specialises in training in the areas of quality management, customer service and sales enhancement. Every month, Aaron writes about customer experiences and takes it up with providers. If you have good and/or bad experiences share it with him, and let us influence customer service standards in East Africa!

BOB PATERSON Bob is a regular writer and shares his wealth of experience spanning 34 years working for a multi-national firm with readers. He has valuable thoughts on various aspects of running an organisation, leading teams, dealing with stakeholders, and living a fulfilling life. Paterson is currently the CEO of a medium sized truck company in Nairobi. Email: paterson@africaonline.co.ke

Email: aaron@jonesconsulting.co.ke

SUSAN BANTU Susan Bantu is a Psychologist and Occupational Counselor trained and certified in the United States. She holds a MEd in Counseling Psychology and Human Development (St. Lawrence University, New York); an MA in African Studies (Ohio State University, USA) and a BA in Political Science and Literature (University of Nairobi). Susan is currently a Counseling Psychologist and teaches Psychology at one of Kenya’s leading International Schools.

MANAGEMENT

DECEMBER 2011-JANUARY 2012

CAROLINE MUNYWOKI Caroline Munywoki is a cost engineer by profession. She has a Masters in Management (MIM) and an MBA/Finance from Southern Oregon University USA. She has worked and lived in the USA for 10 years with her last job being with the State of California - Department of Finance under the governance of Arnold Schwarzenegger where she worked as a Senior Research Analyst. Caroline has also been a judge for the auspicious Big Bang Business competition at University of California - Davis (UCD avis) for the last five years. Email: munywokic@gmail.com

PERSPECTIVE

Lessons from the ENGLAND FOOTBALL TEAM By: DAVID MUTURI

f there is one thing that joins the world together, it has to be football. Every four years the world hosts a football tournament in the name of the FIFA World Cup; an event viewed by up to one billion people around the world. I recently came across an article on www.bussinessballs.com explaining why the England national football team performed dismally during the 2010 World Cup. I know at this time of the year many organisations are reviewing their performance and that of its employees. As I reflected on the last 12 months, this article gave me an interesting perspective about the important fundamentals of foundational strategies, structures, and philosophies. Chronic problems The poor performance of the England football team offers an example of a venture suffering from chronic problems that came to bear during the World Cup. According to the article, England’s national team faces numerous challenges - what I call cracks in the foundation. First, the English Premiership (the pool from which the national team is selected) is dominated by clubs which are mostly owned, and the teams managed/ coached, by people/companies from outside of the UK who have little interest in the success of the England national team, and in many cases have very strong national football loyalties overseas. Second, the EPL teams are mostly staffed by players from outside of England (two-thirds are from overseas) which restricts the pool of available English national talent, and also the opportunities

for home-grown talent to develop and become experienced. Third, clubs are profit-driven and are so debt-ridden as to be effectively bankrupt, and as a consequence of these commercial pressures, players are forced to play many games in a season (generally far more than their international counterparts), without a break, and play at the World Cup happens during the one month in the year when they would normally be resting. When it comes to leadership of the Football Association (the guardian of England’s national game), it has for years been chaotic and disjointed, indicators being: recent resignations of the Chief Executive and Chairman, regular scandals and infighting, and lack of control over domestic games and clubs. Facts and numbers When you look closely at the numbers, you see a deeper problem. England has approximately 10 percent of the number of FIFA qualified coaches compared to European countries like Spain, Germany, Italy, and France (about 2,700 compared to about 20,000 or 30,000 in these other countries). Interestingly, the coach of the national team is not English and cannot speak English properly. It is tragic to have a coach who cannot communicate effectively, and by virtue of his foreign nationality cannot possibly have English national pride in the truest sense. Would an Englishman ever coach the Italian or German national team? Secondly, the coach is paid about £5 – 6 million annually regardless of performance. Failure and

an early exit are effectively rewarded because of a contracted fixed two-year term termination payment (although the effect of this is probably to maintain a failed situation - because the cost of change is prohibitive). England players are paid around £100,000 per week; for doing another job (playing for their clubs) and at least one England squad member had to be asked by the coach to make himself available for his country. Another could not be persuaded. Culturally, the integrity and ethos of football has been lost to the corporate world. The focus is no longer on ball skills and being the best – it is on the brands of shirts, shoes, and the millionaire celebrity lifestyles. Comparison to a business A national football team is in many ways like a business. It needs solid strategic and philosophical foundations. Just like a football team, misalignment at a basic level eventually produces problems at the level of tactical or operational implementation. The sad tale of the England team is a reflection of cause and effect, foundations of failure, poor fundamental strategy, structure, planning and philosophy, and a weak strategic analysis. Success is difficult when foundations are flaky and crooked. So as you analyse your performance, think deeply about the business fundamentals. Email: dmuturi@kim.ac.ke

DECEMBER 2011-JANUARY 2012

MANAGEMENT

YOUR FEEDBACK GREAT QUOTES Decision making “Be willing to make decisions. That’s the most important quality in a good leader. Don’t fall victim to what I call the ‘ready-aim-aim-aim-aim syndrome’. You must be willing to fire.” - T. Boone Pickens “The most difficult thing is the decision to act, the rest is merely tenacity. The fears are paper tigers. You can do anything you decide to do. You can act to change and control your life: and the procedure, the process is its own reward.’’ - Amelia Earhart “Your life changes the moment you make a new, congruent, and committed decision.” Anthony Robbins “It is change, continuing change, inevitable change, which is the dominant factor in society today. No sensible decision can be made any longer without taking into account not only the world as it is, but the world as it will be.” - Isaac Asimov

Thinking broadly

As I was reading through the November issue of management, I came across this very interesting article on page 38/39 titled “What is not Thinking”. As a person who embraces broad thinking, the article was really informative. In a demonstration of what thinking is, “Psychology today” is out to show that indeed 7+7=12 and not 14. I like the simplicity of his proof which I believe is the real essence of thinking. However, it breaks the rules of mathematics for it doesn’t yield a mathematically recognized roman value. As a mathematician, I agreed and disagreed with the author. I agreed that indeed 7 can be half of 12, but disagreed with his method of showing this. After several unsuccessful attempts, I finally came up with what I believe is the most convincing mathematical proof that 7 can be half of 12.Problem: Proof that indeed 7 can be half of 12 (i.e 7 can be = 6) Solution: We intend to show that 7+7= 12 and not 14 (Dividing the left side and the right side by 2 we get..) 7 = 6 (which can also be expressed as..) 7 = (12 - 6) (The objective now is to show that indeed the R.H.S. expression= 7.... i.e) (12 - 6) = 7 (Now, expressing 12 - 6 in roman numbers we get) (XII - VI) (Recall (abb - bc) = b(ab-c), i.e removing common values from the brackets, In our problem this yields..) I(XI - V) (Which now is equivalent to...) I( 11 - 5 )(Which gives us..) I( 6 ) (Back to roman numbers we get...) I( VI ) (Recall a(bc) = b(ab) = c(ba) = abc.....(Law of associativity) thus this is equal to....) IVI (Recall abc = bac = cab, (Law of commutativity)..thus we get..) VII which is equal to 7. Thus 12 - 6 = 7 or if you like 7 = (12 - 6) = 6 = half of 12!! Hence the proof...:-)) Thank you MSU team for including this mind provoking article in the Management. Psychology today could argue that they thought smart while I thought hard. Thank you for including this mind provoking article in the Management. Sam Gicharu Via email

Management magazine group LETTERS TO THE EDITOR

We welcome any feedback from readers. Please include your name, address and telephone number. Letters may be edited for clarity or space. Mail: MANAGEMENT magazine, The Kenya Institute of Management, 2nd and 3rd Floors, Luther Plaza, off University Way Roundabout/Nyerere Road • P.O. Box 43706 - 00100 • Tel: 2445600, 2445555, 2535277 • E-mail: management@kim.ac.ke

MANAGEMENT

DECEMBER 2011-JANUARY 2012

The views expressed in this magazine are the authors' and do not necessarily reflect the views of the Institute. The Editor welcomes articles from readers on subjects of interest to the Institute or to Management practices. Reproduction of any articles or pictures without permission is prohibited.

YOUR FEEDBACK First who, then what

The November Hands on Management feature “Whats leadership got to do with it” put me into thinking as I read it thrice for a better comprehending. I questioned myself whether this was the most successful leadership style in business or not. We all know that there are few different leadership styles – from being a democratic friend of your employees to being a ruthless autocrat. Having read the feature, I finally had a backup to my opinion. Yes, Jim Collins’ entire book, “Good to Great” describes a complete research process he went through in order to determine which the best leadership style is. He calls it Level 5 Leadership. Level 5 leaders tend to be ambitious primarily for the cause, the organization, the work – not themselves – and they have the fierce resolve to do whatever it takes to make good on that ambition – as Shabbir puts it, ‘leaders display strong sense of paradoxical blend of personal humility and professional will.’ Well, while business leadership theories could be learned, it may well be observed that the real skill for completing a level 5 leadership task comes from the ideal process of actually experiencing the challenges and the situations involved in the process. So whether you got common sense or not, one will have to face the challenges. And, if one pillar within the pyramid fails to attain the goals of the organisation, the aspiration can vanish into dusk. But there is always a dawn, ‘First Who, Then What’. We shouldn’t forget that those who build great organisations make sure they have the right people on the bus, the wrong people off the bus, and the right people in the key seats before they figure out where to drive the bus. They always think about “who” and then about “what.” Saeema Mohamed Salim, Mombasa Via Email

Should medium be the message?

The October issue was a knock-out issue. I particularly enjoyed the piece by Tom Sitati- “Don’t believe the hype”! I however disagree on one pertinent point on his conclusion that, ‘the medium should never be allowed to be the message’, is total misinterpretation, especially when discussing new media. When Marshall McLuhan talked about the medium being the message- his reference was directed towards how the mediums interacted with society. Each medium has its own pattern of communication and interaction and as suchespecially new media- have individual and specific modes of assimilation. For Sitati to posit that the medium should play second fiddle to the message, would be like putting the carriage ahead of the horse. Understanding communication begins by looking at the modes of distribution and the opportunities available, especially when commercial interests are being pursued. New Media isn’t really new- it has always existed, only new forms of interaction emerge. The medium remains the ‘king maker’, as Phillip Mageria insinuates in his piece “Why your adert doesn’t work” and as the piece in the September issue on ‘the future is mobile’ on Isis Nyong’o clearly presents. In conclusion, the medium is the message. For corporate to push forward communication strategies in developing markets where new media is being embraced, their foremost objective is to select the medium then the message and not try to fit the message into the medium. Thank you for the great magazine. David Mugambi Via email

The marketing gurus November 2011 KSHS 300 TSHS 6,000 USHS 8,700 RWF 2,500 US$4

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SMART MANAGER

The ABCs of business budgeting

ROGER STEADMAN

Lessons on entrepreneurship

MANAGEMENT

OANNE

The November cover story about two entrepreneurial ladies (Joanne Mwangi and Jennifer Barassa) who have vast experience in the business sector gave me a deep insight in a clear explanation and understanding of what successful marketing is all about. I came to learn that, marketing largely depends on sufficient research, a clear definition of the 4P’s i.e. Product, Price, Place and Promotion. The medium of advertisement also forms an ultimate basis for efficient and successful marketing of a given product or service. Internet in the 21st century has emerged as the most advertisement agent in the marketing of a specific product or service. In conclusion, how one phrases a marketing and promotion campaign is the key determinant of how a particular product will perform in the market.

Mwangi

ENNIFER Barassa

Marketing strategies that work

Livingstone Were Munywele, Moi University, Eldoret, Kenya. Via email

DECEMBER 2011-JANUARY 2012

Haco Tiger Brands (EA) Ltd on Tel: 254 20 8642000/1/2/3 Email: info@htb.co.ke Website: www.hacotigerbrands.co.ke

IN THE NEWS

What’s NEW? MOBILE PREPAID PRODUCT FROM VISA

Kisumu Councillors get management lessons

isa Inc has Visa prepaid account that can be accessed through a mobile phone and offers consumers in developing countries a secure, reliable, globally interoperable electronic payment account. MTN Group plans to offer the new Visa product to MTN Mobile Money customers across its markets. As part of the launch, the new product will be available to customers in Nigeria and Uganda.

CMA WORKING ON REAL ESTATE INVESTMENT POLICY

s part of efforts to finalise the policy framework to pave way for the introduction of Real Estate Investment products for the capital markets in Kenya, the Capital Markets Authority (CMA) has kicked off engagement sessions with key stakeholders to seek their input on the framework. Following the exposure of the draft 2009 Capital Markets (Real Estate Investment Trust) Regulations to various stakeholders, CMA noted the need for more in-depth consultations to ensure the framework brought into law will meet the diverse market needs from both a public policy and commercial viability perspective.

SAMSUNG AFRICA LAUNCHES SOLAR POWERED INTERNET SCHOOLS

amsung Africa unveiled a continental project to boost computer literacy and expand internet access at the basic education level with a Solar Powered Internet School model. The model unveiled on a pilot project in South Africa features a fully equipped containerised computer school kitted with Samsung Personal Computers and remote access internet connectivity. The pioneering project at the Samsung Engineering Academy in Boksburg, South Africa is also set to be replicated in other parts of Africa including Kenya.

MANAGEMENT

Mr. David Muturi, Chief Executive Officer of The Kenya Institute of Management presenting a certificate of attendance to Pamela Iro (kisumu municipality) during International Republican Institute Workshop conducted by The Kenya Institute of Management

By KENNEDY LUMWAMU Kisumu City is on the rise to better management and local governance if lessons learnt by the council fathers and their managers are put into action. The councillors and chief officers have for the last three months been receiving lessons on management skills from a training conducted by the Kenya Institute of Management (KIM) funded by the International Republican Institute and the National Endowment for Democracy. David Muturi, the KIM executive director said that there is need for those elected to be prepared for their positions and that it was even more important as the country moves to embrace the new constitution. He added that openness and involvement is a key factor in governance. The Subjects offered at the training included strategic management, public sector strategic management, devolution

DECEMBER 2011-JANUARY 2012

and administrative law and local governance. Also taught was finance and accounting public opinion and policy development, political communication and media relations, outreach and relations with the civil society. These were to equip them with skills on how to manage public funds, co-ordinate public activities and also relate with the public on how revenue is utilised. Ben Odondi, Kisumu Deputy Mayor noted “We have now come to understand that the action and strategic plans which are mainly done with the input of consultants and chief officers is not their preserve but we have to be part of it,” The training also brought together the civic leaders and chief officers who have in the past been suspicious of each other and also helped heal wounds that developed prior to and after the last August mayoral elections.

IN THE NEWS

Kenya spruces her airports for growth

By DANIEL MAYABI Kenya Airports Authority (KAA), the overseer of Kenya airports portfolio admits that airports are no longer just entry and exit gateways but vital cogs for growth and development. It is only with adequate facilities anchored in Kenya that we can attract investors. All Kenya’s key airports are under expansion- from Wajir military airbase adaption to handle civilian flights, Malindi airport modification for international flights, Kisumu airport expanding for the larger East Africa Community air traffic pie. Airports with better connections to the global air network bolster output and growth of economies. They guarantee better access to markets, enhance links within and between businesses and provide greater access to resources. Kenya has embarked on an extensive improvement of her aviation infrastructure furthering deeper her quest for macroeconomic growth. KAA is in a KSh180 million input in modernizing and expanding Nyaribo, Nyeri Airstrip. This is part of a strategic infrastructural improvement for Kenya’s six similar airstrips in valuably vital locations. The runway expansion to 1.3 kilometers and addition of new apron would open Nyeri County and make tourists’ safari, medical evacuations flights and citizens flying safer. Wilson is to get a new terminal building. The upgrading will include

MANAGEMENT

apron expansion; putting up of a proper perimeter wall; improvement of the drainage system; construction of a public parking and expansion runways and taxiways shoulders. Nakuru International Airport 200 km proximity to Nairobi’s JKIA would strategically shorten flight diversions time, in view of the current diversion to Mombasa 500 km away or Entebbe 800 km away. This shall boost JKIA aviation support outlook and propel spring up of propulsive industries. It has the synergies of its proximity to a vast horticultural base besides being the fastest growing town in East Africa as per 2010 UN-Habitat statistics. However JKIA has been criticized perpetually by airlines as their passengers squeeze over peak hours in jammed terminals often with long security and immigration queues. In particular national airline Kenya Airways, other airline operators as well as a growing list of airlines wanting to fly into Nairobi have put KAA under immense pressure. As a pacesetter for other airports in the region JKIA holds the bulk of the expansion cash chest. However airlines eyeing Nairobi and bothered JKIA passengers have to hold their guns till final quarter of 2012 when airport terminal four and other capacity expansion are slotted to complete. The current terminal 4 expansions and reorganization of terminal 1, 2 and 3 would see JKIA handle 9 million passengers a far cry

DECEMBER 2011-JANUARY 2012

from its initial 2.5 million passengers. KAA has recognized aviations importance in economic development and in supporting long-term economic growth and is investing in an estimated KSh 640 million in Isiolo airport. Scheduled to be complete in early 2012 Isiolo airport would be the gateway to Kenyan underutilized northern frontier district with huge prospects for tourism, film, desert race, and smart cities. In Malindi, 160 million worth of expansion works for new terminal and control tower at Malindi are underway to increase passenger handling capacity. The Eldoret Airport with three cargo flights a week still reels below capacity even after Turkish Airline introduced operations. KAA however intimates Eldoret Airport is roaring with potential as an increase is projected in the next two years. Eldoret has the capacity to earn the economy KSh 30 billion a year but currently rakes a paltry KSh 200 million from both exports and imports. Globally, the Gulf States long discovered the power of super airports. The allure of brand new super mega airports-Doha, Dubai and Abu Dhabi made Gulf States beat their European counterparts as connection hubs. This with no night time restrictions and ability to hop to any international destination non-stop are beating yesteryears favourite airport hubs. In Dubai’s Jebel Ali region a new airport has already opened and will eventually have 6 runways, annual 150 million passengers’ terminal space and a metro to the city. Unconfirmed reports indicate Dubai International Airport may ultimately become an Emirates only base; any carrier would covet such a feat. Currently emirates commands terminal 3 of Dubai airport with a fleet of 148 and 190 under order. Kenya is however swiftly following the chirps of the early birds as demonstrated by the Gulf States to position her aviation footprint. It is geographically positioned to strike a colourful aviation hub for Africa only if she is brave enough to land and scourge for new nutriment. dmayabi@gmail.com

IN THE NEWS

APPOINTMENTS had an illustrious career in both the public and private sectors. He holds a PhD in Natural Sciences Doctris Rerum Naturalium, Master of Science Hydrobiology, Master of Business Administration (Strategic Management), and a Bachelor of Education â&#x20AC;&#x201C; Science (Honors). He is an accomplished scholar who has published widely, a renowned educator and a mentor to many. In recognition to his contribution to humanity, Prof. Mathooko was appointed as the President, UNESCO Intergovernmental Bioethics Committee (IGBC) during the fifth IGBC meeting Paris where he served from 2007 to 2009. He is the Representative of Kenya on the UNESCO Executive Board and also serves on its Conventions and Recommendations Committee.

rof. Jude Mutuku Mathooko is the new Vice-Chancellor of the Management University of Africa (MUA). He was the immediate former Deputy Vice Chancellor (DVC), Research and Extension and acting DVC, Finance and Administration at Egerton University. Prof. Mathooko has

avid Wamathu has been appointed the Divisional Manager for Ford at CMC Motors Group. He has served for four years as the Sales and Marketing Manager of the Heavy Commercial Vehicle Division in the same

ngela Kagwiria Mwirigi has been appointed the KCB Divisional Director M a r k e ting & Communications. She served as a Regional Marketing Manager â&#x20AC;&#x201C; Partner Brands East African Breweries Limited (EABL). She holds an MBA degree in Strategy from United States International University (USIU), a Bachelor of Commerce (Marketing) degree from the University of Nairobi and a postgraduate PMD qualification from Strathmore Business School.

company. David joined CMC in 2007 and has over four years experience in motor trade. He holds a Bachelor of Commerce degree and an MBA in Operations Management from the University of Nairobi.

halinRameshchandraGudka has been appointed the KCB Divisional Director, Treasury. He previously served as Head of Trading for East Africa at Standard Bank/ CFC Stanbic Bank. He holds a Bachelor of Science (Hons) degree in Banking and Finance from Loughborough University, England, has a postgraduate UK Plus ACI Dealing certificate and is an Associate of the Chartered Institute of Bankers, England.

DECEMBER 2011-JANUARY 2012

MANAGEMENT

IN THE NEWS

Emirates Sky-Cargo use of Electronic Air Waybills Emirates Sky-Cargo has moved from using paper waybills to electronic air waybills (e-AWBs) becoming an e-freight. Shipments from its Dubai hub are now using 100 per cent electronic air waybills which bring benefits to businesses throughout the supply chain. The use of e-AWBs is accurate on information, a greater degree of confidentiality, while the increased efficiency of the supply chain not only

improves the reliability and speed of service, but provides the opportunity to reduce costs on activities such as paper handling and archiving. In addition, delays caused by loss of documents are avoided, while there is a reduction in the industry impact on the environment. This will also eliminate the need to print, handle or archive the paper AWB. Emirates Cargo Manager for East Africa Khalid Al Hinai said “Eliminating paper AWBs from our hub demonstrates

our commitment to meeting IATA’s deadline and bringing enhanced operational efficiency to the supply chain. The benefits for the entire industry are clear, simplifying business and reducing costs, and as more and more parties come on board, the benefits become greater,” added Al Hinai. Emirates SkyCargo is at the forefront in implementing e-AWBs throughout its network - in coordination with freight forwarders. “The transition to e-freight is a massive challenge for both the industry and Emirates SkyCargo. Change of this scale requires time and many steps have been made, but this really is a giant stride forward,” said Al Hinai. He added that Emirates SkyCargo, the freight division of Emirates airline, was already on track to meet the deadline with 51 of the locations it serves e-freight compliant and this latest milestone was further testament to the progress being made. The IATA e-AWB scheme is one part of the E-freight push - a collective industry goal, also facilitated by IATA, to remove paper AWBs, as well as every other document and certificate, by the end of 2014.

Barclays nurtures young entrepreneurs Young Kenyans will be equipped with skills to start and manage their own businesses and become financially independent. 90 youths who underwent business plan development training under a separate programme funded by Barclays bank will benefit from a two day workshop that will be discussing how the youth can apply information and communications technology to establish enterprises with minimal costs. The workshop organised by Barclays Bank of Kenya (Barclays Kenya) partnered with Kenya Youth Business Trust will help the youth who undergo the training to implement the skills learned at the session in their business. Thomas Mbote, Barclays Consumer Credit Director, says the training is consistent with similar programs undertaken by Barclays in the bank’s on-going effort to empower youth and nurture entrepreneurship in Kenya. He added “We are excited about supporting this programme as the youth will be trained on fundamentals that will enable them to establish and run successful business ventures, and also believe that the youth will be equipped with critical skills that will contribute to any organisation - should they follow the path to employment.”

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DECEMBER 2011-JANUARY 2012

The Barclays team will help the participants understand the macroeconomic factors that affect how businesses compete, how the money markets are performing and the credit cycle in which they are currently operating in. In addition to Barclays business experts, a team of facilitators led by information and communications technology expert, Henry Njoroge, who is also the Chairman of the Kenya Youth Business Trust; and Grace Kimotho, a Trustee of the organisation, will be available at various sessions.

OPINION

Polls and Democracy in Kenya: WHICH IS THE CHICKEN, AND WHICH IS THE EGG? By TOM WOLF

n the national soul-searching that occurred after the near-disastrous 2007 election aftermath of Kenya’s last election (and which was clearly just that for many unfortunate Kenyans), the voting-intention polls that proliferated as the electoral clock ticked away were cited as one of the many culprits. Over the last several years, much has been done to ensure that the country never again experiences such a democratic ‘melt-down’. Such measures include especially: the provision for genuinely neutral electoral body, a Supreme Court to handle election disputes quickly and with widespread public confidence, and a provision for a second round run-off presidential race if no candidate has a clear victory on the first round. Indeed, all of these measures may be found in the final report of the Kriegler Commission that was established to determine the main causes of the last crisis so as to identify measures to make sure nothing of the kind happens again. In this connection, while several who appeared before that Commission called for restrictions on polls, its report specifically rejects any such attempt, recommending instead training for journalists and political party operatives alike. Does this mean that everyone – especially some politicians whose shortterm popularity does not match their electoral aspirations – wholeheartedly support them? Of course not! Those with unpleasant appearances often try to avoid mirrors. But do such polls play an important, and generally constructive, part in the political process? I suggest that they do.

Perhaps most important, they can give political parties and other relevant actors a reasonable estimation of how popular potential candidates are, and of the issues or other factors by which they are evaluated, both at any one point in time, and over time. Such information can help in both the selection of

candidates and in measuring the impact of various campaign activities once candidates have been selected. Such information can also help inform voters’ choices, by showing which candidates have (and which don’t have) a realistic chance of winning, thus allowing for more strategic voting. In addition, in

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OPINION environments where ‘rigging’ is a danger, they can help (but not completely prevent) this by demonstrating what the ‘true’ results are likely to be. Finally, when the election is over – and assuming no vote theft or other malpractice occurred – they can reveal just how willing interview respondents are to actually reveal their true voting intentions to survey investigators, thereby advancing the science of polling itself. Can polls influence voting? But – to take up another expressed concern – can the dissemination of voting-intention results actually influence voting choices themselves? Perhaps a better question is: should they? For example, if all those who voted for Kalonzo Musyoka in the last election knew that they held the ‘balance-ofvictory’ between Mwai Kibaki and Raila Odinga, should they have chosen between them, knowing their preferred choice had no chance of winning? Of course, in a democracy, people should feel free to vote for any candidate, whatever his/her chances. But would it be wrong/undemocratic/unfair for voters to have as much information as possible about the state of competition before making up their minds? Presume, for example, that if the race between Kibaki and Odinga was deemed “too close to call” (as it was), if Kalonzo’s supporters had very strong feelings about which of the two should lead Kenya, then I see nothing wrong with them switching their vote to that candidate, even if this might have depressed Kalonzo’s vote. Others, of course, may have wanted to express their support for Kalonzo even knowing he had no chance of winning, which would also be their democratic right. The issue is: if there is not going to be complete freedom to conduct and publicize poll results (though perhaps not doing this within the last few days of an election so as to depress turnout if one candidate is seen to be so far ahead of the rest), who should be trusted to decide what poll results should be restricted, or even which questions should/should not be asked, given that everyone must be assumed to have a ‘political interest’ in who holds power? Most critical in all the above, of course, is the professional capacity,

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and integrity, of the pollsters. In the longer run, producing poll results that differ significantly from actual voting behaviour should serve to drive such poor performers out of the market, though in the short term their work could do damage, even if such deviations from ‘reality’ are not intended. This is why those in media (and elsewhere) who report or rely upon poll results must take care to ensure that all the major requirements of such endeavours are upheld. The sampling But doing this is not easy, or cheap. To begin with, how can ‘outsiders’ know whether there was any ‘rigging’, in terms of the sample not really being representative of the population that it claims to accurately represent? At one level, this isn’t too hard to verify: just check the most recent census and see if the allocated numbers of the sample (by province, district, or some other spatial unit) match. For example, if Nairobi has about nine percent of Kenya’s population, then nine percent of those interviewed should come from this city – and that nine percent should be distributed exactly according to the population-concentrations in each part of the city, which can also be checked. Beyond such distribution requirements, there is also the issue of the actual selection of individuals within households (not on the street, at markets, or in other more visible locations that would constitute a bias against the availability of the ENTIRE population), especially since at any time, not everyone (of 18 years or above, the legal threshold for such interviews) in that household is present when the interview comes. Just how this reality is dealt with is a bit complicated, but it must be dealt with; for those interesting in exploring it, review to the methodology documents at: www.afrobarometer.org. Next, how can there be confidence that there was no bias in terms of the individuals interviewed within those selected areas? Here, such factors as age, gender, education level, employment and marital status, religious affiliation and – in Kenya, of course – ethnic group must match those of the population as a whole. This is

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why it is extremely important that the samples ‘demographics’ be released together with the substantive findings. For example, since we know (from various sources) that about one in three Kenyans is a Catholic, and about one in 10 is Kamba, we should make sure the sample accurately reflects these realities, at least if the responses to the questions being asked might in any way be influenced by religious affiliation or ethnic identity; if not, it doesn’t matter. Another example: the rural-urban balance must also match reality, for two main reasons. First, some ethnic groups have a much larger presence in cities and town than do others, and as we know, especially regarding public affairs (starting with voting intentions), ethnic identity influences surveys on such issues. Second, people in urban areas generally are better informed, usually reflecting higher levels of education, and therefore are likely to be somewhat more ‘demanding’ of their government than less-aware rural-folk (though only through research can this assertion be tested). Third, it is necessary to pay close attention to sample size. This is because the smaller the sample, the greater the possibility that the actual results obtained on any question deviate from reality. For example (according to statistical tables), a sample size of 1,000 yields a marginof-error of +/- 3%. This means that if 1,000 respondents (having been selected according to strict sampling protocols) were asked: “Did you drink any hot beverage after you woke this morning?”, and 75% said “yes”, the ‘actual’ numbers could be anywhere between 72% and 78%. (And here we must also remember that for any such survey – most of which employ a ‘confidence-level’ of 5% there is 1 chance in 20 that the ‘actual’ number falls outside this range.) Perhaps more important, when the sample drops below this figure of 1,000, error-margins climb quickly. This means that if we are going to examine survey results of sub-groups of the sample – say, for Catholic women aged 18-25, of which there might be only 100 or so – our error margins will be closer to +/- 15% (i.e., a range of a whopping 30 percent). So great caution must be used in presenting such results, starting with ‘full disclosure’ of the size of any

OPINION such sub-groups when the results are released. (The actual error-margins of sample can be obtained by using the calculator-tool available at www. surveysystem.com, which is free.) Finally, of course, a firm (or anyone who conducts a poll) can simply make up the results, whether any interviews were conducted or not. That is why there is considerable ‘safety-in-numbers’: the more competing polling firms there are, the greater the damage to them if any of their results deviates substantially from those of the others. Here, from my own experience, the main problem is not purposeful ‘rigging’, but cost. Since about two-thirds of Kenya’s population is concentrated is only about a quarter of its land-area, and that the remaining parts of the country present great cost-challenges in reaching (especially during rainy seasons), surveys that lack sufficient finance may be tempted to ‘cut costs’ by leaving out large sections of the remaining one-third of the population. While doing so may not substantially affect certain results, only by comparing results for the exact same questions between surveys that do and do not include them can demonstrate this. Fortunately, some kinds of results are much easier to compare with ‘reality’ than others, i.e., “Who do you intend to vote for in the next presidential election?”, as opposed to, “Have you ever paid a bribe to obtain a service from a local authority?” In the latter case, the trend over time may be a more realistic finding than the actual percentage on any single occasion. Challenges of polling Given all these above factors, and especially considering the resources that are devoted to the contest for political power (and not just in Kenya!), survey firms must continue to educate in order to illuminate these kinds of professional requirements (including, also, for example, how many languages respondents could choose from to answer questions, and how many of those selected for interviews had to be left out because they lack proficiency in any of them, such as just English and Swahili?) But even after all of them have been fulfilled, hazards remain. A basic pair

OF COURSE, IN A DEMOCRACY, PEOPLE SHOULD FEEL FREE TO VOTE FOR ANY CANDIDATE, WHATEVER HIS/HER CHANCES. BUT WOULD IT BE WRONG/ UNDEMOCRATIC/UNFAIR FOR VOTERS TO HAVE AS MUCH INFORMATION AS POSSIBLE ABOUT THE STATE OF COMPETITION BEFORE MAKING UP THEIR MINDS? of challenges here is whether the way questions are framed yield answers that make sense, and whether the reporting of such findings does as well. For example, some surveys ask whether respondents will re-elect their current MP, and then on the basis of the results, offer a prediction as to what proportion of those currently in the National Assembly will be there after the next election. Even without the prospect of additional parliamentary seats, we are on very shaky ground here, for several reasons. First, are we sure that those answering this question will actually vote? (They may not even be or plan to be registered voters.) Second, since a full half of all current MPs won with less than 50 percent of the vote (because there were so many candidates in most constituencies), many candidates will not need more than that proportion to win next time. (For example, Speaker Kenneth Marende won in Emuhaya with only about 14 percent of the vote, as there were 28 candidates.) Third, and perhaps most important, with a total sample size of 2,000 (a common number for surveys in Kenya, though note that most national polls in the US for example, with more than 300 million adults, use only 1,500 respondents), how many people were interviewed in each constituency? In many, none. In the more populous (e.g., Kamukunji), certainly fewer than 100, meaning that the error-margin at the constituency level is huge, making the results almost meaningless, at least as a predictor of actual election outcomes (rather than as a general measure of approval of current MPs’ performance/popularity). And this fact holds even if such a poll was conducted after the number and the identity of all the candidates is known. Additional examples could be provided. But the point is that as the market requires competition, freedom

requires responsibility. And this is one problem Kenya is facing, for the very reason that polls have become accepted as (generally) accurate: that ‘fake’ polls can be released, claiming to be accurate, and thereby exploiting the confidence in such polls that truly professional, reputable firms have established. Without some very draconian ‘poll police’, however, it seems such abuses are inevitable, at least in the short term, until the ‘truth’ catches up with them, and – with whatever short-term damage in the meantime – it seems likely that those contemplating doing the same in the future would think twice. The Kenyan voter From the point of view of political science, what has been learned about the Kenyan voter from the polls that have been conducted? Most of the answers to this question would require a long and detailed analysis of numbers, which isn’t possible here. The first point does not, however: the Kenyan voters (as well as others) are quite prepared to reveal their intentions, as well as all sorts of other facts and opinions, at a level similar to that found in older free and democratic countries. Turning to their substance, nearly all the polls have shown that the country’s economic conditions – the cost of living and the shortage of work – are what Kenyans think the Government should be trying the hardest to address, and that there next most common concern is corruption. Finally, the polls have also shown that Kenyans generally trust the polls, and think they are contributing to the development of democracy in Kenya. And this makes sense, since if democracy means “rule by the people”, surely the people’s views matter. And they should. The problem is that in most countries, they don’t matter enough.

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MANAGEMENT

NEWS ANALYSIS

Energy production in a GREENER AFRICA

ub-Saharan Africa has massive potential to generate clean energy that could help lift hundreds of millions of people out of poverty without exacerbating climate change, a new Christian Aid report revealed. At present, sub-Saharan Africa countries (719 million people) have severely limited access to energy, consuming between them if South Africa is discounted, less electricity than New York State (19.5 million people). Lack of power has hampered Africa’s efforts to meet the UN-agreed Millennium Development Goals (MDGs), and contributes to the deaths of hundreds of thousands of children below five years every year, through respiratory ailments caused by smoke fumes from open cooking fires. With the provision of energy being a cornerstone of poverty eradication, progress through modernisation elsewhere in the world has until now entailed massive increases in carbon

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emissions through the use of fossil fuels. The new report, ‘Low-Carbon Africa: leapfrogging to a green future’, published by Christian Aid to mark the United Nations climate summit that opened in November in Durban, South Africa, said that it need not be template for the future. Taking examples from six subSaharan countries, it highlighted the sustainable energy sources at hand that would enable Africa to develop in a low-carbon fashion. The report’s launch came as a ‘Caravan of Hope’ set off from Burundi across 10 African countries bound for the opening of the UN summit in Durban, to highlight how climate change was already affecting poor people’s lives on the African continent. The new report’s lead author, Dr. Alison Doig, Christian Aid’s senior adviser on climate change and sustainable development, said that without significantly expanding energy provision, African countries will fail to meet the MDGs. ‘A lack of access to modern energy services impedes poverty

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alleviation, education, gender equality and healthcare, and limits employment and livelihood options,’ she said. It is now widely recognised that without access to modern energy services, it is highly unlikely that the MDGs will be met. In Africa, the need is urgent. Nearly half a billion people– almost 70 per cent of the population – have no access to electricity. Until now, those used to a carbonintensive way of doing business have said the choice is plain, policy makers can either lift people out of poverty, or they can tackle climate change - they can’t do both. Clean air and progress have been seen as mutually exclusive. ‘That ‘choice’ is fundamentally false. An enormous opportunity exists for developing countries in Africa to leapfrog ahead in the journey to sustainable development if the right strategies are used. There is a huge potential for renewable energy across the continent, which is largely untapped. The report demonstrates that geothermal, smallscale hydro, solar, wind, tidal and biomass fuels, including agricultural wastes, all offer significant potential for delivering both basic needs and for unlocking economic growth. Dr. Doig warned, however, that African countries, some of which are already experiencing the impact of climate change, a problem not of their causing, through depletion of water resources and soil erosion, as well as reduced crop yields, need help to realise their huge energy potential. “The funding must be reliable and substantial,” she said. It is estimated that about USD 20billion per year is needed to deliver basic energy to all by 2030, and USD 30-35billion a year to deliver a higher level of low-carbon development. Dedicated funding to help Africa achieve low-carbon development should be met from the Green Climate Fund which is expected to be set up at the UN summit, said Dr. Doig adding that African countries needed to plan ahead for a low-carbon future, and rich country assistance should also take the form of technology transfer, bilateral and multilateral investment and participatory market approaches.

NEWS ANALYSIS

The double-edged SWORD THAT IS THE MONETARY POLICY By MACHARIA KIHURO

he financial markets are in a tumultuous whirlwind. From the Euro zone to subSaharan Africa, it is all about the making of a horrendous financial crisis. Kenya has seen unprecedented hike on the interest rates in desperate efforts to save the local currency from the marauding “hard” currencies. The Central bank in an extraordinary move recently increased the Central Bank Rate, its benchmark lending rate, by a whopping 500 basis points. The philosophy behind the tightening of the monetary policy was to rein-in a trodden shilling, and runaway inflation rate that hit a high of 18.9 per cent in October 2011. As expected, the reaction was swift and furious and indeed majority of the commercial banks have increased the lending rates. The major players in the market have put the base lending rates above the 20 per cent mark with Commercial Bank of Africa joining the fray at a high of 24 per cent. A bank’s base lending rate is the minimum rate that a bank is expected to charge to cater for cost of funds and some administrative costs. The bank therefore adds a risk premium for the risk assumed. Usually, the risk premium oscillates in one to five percent bracket making a loan’s lending rate to be close to 30 per cent. This is quite expensive and easily comparable with what money “Shylocks” would charge you for money loaned. But it’s not happening only in Kenya- Nigeria and Uganda have made similar moves in attempts to contain the massive run in their local currencies. Central Bank of Nigeria raised the monetary policy rate by 275 basis points from 9.25 per cent to 12 per cent. Also the cash reserve ratio was increased from 4 to 8 per cent. The Bank of Uganda increased the central Bank rate to 16 per cent to help arrest the mounting inflation rate which now stands at 21.4 per cent.

Further, Greece has triggered a flurry of activity to redeem its seemingly eroding ability to service its debts. The consequences are far-reaching and are expected to destabilize the entire Euro Zone. This explains the desperate efforts from Germany and France to ensure that Greece agrees to the set austerity pills that seems too bitter to swallow. There has been a huge debate on whether monetary policy really works. Is it largely a balance of some sorts? Whereby tightening one aspect you let loose another. Talk of a double-edged sword. Monetary policy actions usually impact real interest rates, which in turn affect demand and eventually output, employment, and inflation. Take Kenya for example, what are the likely impacts of the changes in the monetary policy. True, this has shown positives in taming the volatility and depreciation of the Kenya Shilling against the hard currencies especially the US Dollar. Coupled with the current rains, CBK’s action may substantially reign in on the runaway inflation. However, the increase in bank lending rates will have huge adverse impacts on the economy. The growth in Nonperforming loans is a reality the banking sector must live with largely buoyed by ‘debt fatigue’ from the borrowers forced to pay more due to hike in the interest rates. Slowdown

in the bank lending can decelerate the developments that were in the pipeline as developers adopt a wait-and-see attitude. This effectively will make the government revise downwards the GDP growth prospects as well. An agile institution with robust risk management systems must be on the lookout. As an astute risk manager in a commercial bank must put in place systems to manage the inherent risks especially regarding credit risk and foreign currency risk management. The English say, “Every cloud has a silver lining.” It is those who will put in place robust risk management structures and strategies that will avert the evidently possible losses and make satisfying returns. Email: jkihuro@gmail.com

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Efficient Machinery

Environmental Friendly

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TOP EVENTS

SOSSI KOROGA LAUNCH DATE: Saturday 29th Oct, VENUE: Arboretum.

L-R. Mark Williams, Group Category Director-Promasidor, cooks Sossi pilau closely watched by Anunda Sakwa, Sarah Wasai and Nancy Kihenia.

Robert Clarke MD Promasidor (L), gives hands on sossi cooking tips to Solomon Okuku and Pamela Kadima.

Mark Williams, Promasidor Group Category Director, addresses guests during the Sossi Koroga Launch event.

Robert Clarke(L), MD Promasidor,tastes a samosa prepared by chef Eliud Mbogo at the koroga sossi launch.

COMPANY OF THE YEAR AWARDS

VENUE: SAFARI PARK HOTEL NAIROBI DATE:

Photos taken at SANKARA HOTEL

Jonathan Ciano, The CEO Uchumi Supermarkets gives the corporate citizenship environment focus award to Julius Kipngâ&#x20AC;&#x2122;etich, CEO Kenya wildlife. service.

Mabati Rolling Mills team pose for a photo after receiving the Company of the Year Award 2011.

Avni Dave gives the Manager of the year runners up award to Flora Ngina Ngonze, ICT manager at Catering & Tourism Development Levy Trustees (CTDLT).

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DECEMBER 2011-JANUARY 2012

2ND NOVEMBER 2011 PHOTOS: JAMES OLUMA

(l) Kaushik Shah, CEO Mabati Rolling Mills receives the CEO of the year Award from Linus Gitahi, CEO Nation Media Group.

TOP EVENTS

PWANI LAUNCH PRODUCT VENUE: Aromatic Spa DATE: 5TH NOVEMBER 2011 VENUE: Aromatic Spa

Catherine Nasimiyu (L) of K24 with Desiree Gomes.

Jacinta Mkundi (L) with Maria Muthoni both of Pwani Oil.

Peter Beard, CEO Pwani Oil with Neelma Shah, PR Executive.

KENYA ASSOCIATION OF WOMEN IN TOURISM THANKSGIVING COCKTAIL VENUE - SOUTHERN SUN MAYFAIR HOTEL DATE: 4TH NOVEMBER 2011 Faith Kithu,(right) Chairperson KAWT, Sophie Njagi and Media personality Janet Kanini Ikua.

KAWT Committee members- Priscillar Lagat, Joan Okeyo, Angela Tilitei and Sarah Kamotho.

Lucy Macridis,(left) SKAL President with Sallie Khavere, Marketing Manager- Southern Sun Mayfair Hotel.

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COVER STORY

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COVER STORY

Money talks: THE GOOD, THE BAD, AND THE UGLY In the last 14 months, attention has been on the performance of the global financial markets as economies try to stay afloat as signs of another recession loom. CAROLE KIMUTAI spoke to Aly Khan Satchu about trading, investments and what to expect in 2012.

rom his eighth floor office, AlyKhan Satchu has a perfect panoramic view of Nairobi City. But that view does not stop there, it extends into the world of financial markets and investments. Aly-Khan as he is popularly known has been a trader since he was 22 years. Two and half decades later, he still gets a kick out of analysing numbers and trends. Aly-Khan, 46, grew up in the Coastal town of Mombasa and as a young lad he would often read his father’s copy of the Economist magazine. “At the back of the magazine, there were tables with prices of commodities and currencies, and as a game, I would predict what would happen to those numbers,” he reminisces. Years later, Aly-Khan is at the centre of what is happening in the global financial markets having worked as a trader in Europe and Latin America controlling budgets of up to US$ 17billion. With the internet removing all geographical barriers and time differences, he follows what is happening 24 hours a day all year round. “I love numbers and I am always online. Infact when my child was being born, I had major challenges leaving my computer!” The trading business Before returning to Kenya in August 2006, Aly-Khan had worked at the

global trading desks for Credit Suisse First Boston (Emerging Markets) and lived through the financial crisis in Latin America in 1994 at a time when he had lent out more than US$2 billion. He later joined Sumitomo Bank as Managing Director before moving on to become Treasurer and Director of all collateralised lending at ANZ Investment Bank in London. For Aly-Khan, trading is about keeping a score. He compares it to playing a sport and waiting for the perfect opportunity to score. “I look at the world, situations and performance over time. Where I think markets are not appreciating, I look at opportunities in those markets.” Courtesy of the internet, he is able to follow all global markets on a continuous basis from the comfort of his computer. He says trading also includes looking at diverse aspects of money and being able to buy cheap and sell expensive, sell expensive buy cheap. “When I was on the trading floor in London, many foreign traders were actually fruit sellers from the East end of London and their ability to compute numbers quickly was what the bank was looking for,” he says of his experience in Europe. Since 2003, Aly-Khan has been trading his own funds mainly commodities (particularly oil), currency futures and options, equity indices, and

single stocks. Does he use his mind or follow his gut feeling? “Different things have worked for me at different times. I try to be as cerebral as possible but markets are emotional, they are like a rollercoaster ride sometimes. You see something happening and think you have to jump quickly but then you find out everyone is also thinking the same. For me really, it is a mixture of both. I describe my gut feeling like déjà vu I feel like what I am getting into is something that has already happened.” Aly-Khan was approached by the Nairobi Stock Exchange (NSE) to become an authorized data vendor. His website www.rich.co.ke provides free level one NSE trading prices, and international and local analysis to individual and corporate investors, companies and media. The mind of an investor Aly-Khan says investors should learn trading skills. “But it starts with clearing knowing what your objective is. You will be permanently penniless unless you are able to create some kind of capital and then grow that capital – your ability to grow that capital is very important.” He notes that some investors will take big risks by borrowing and making money out of it. “As an investor in the financial markets, you must make a judgement call the same way a real estate investor

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COVER STORY

does with optimism that the property value will appreciate.” For investment groups says AlyKhan, the philosophy should be to pull money together with the intention of earning good returns. “That is the basic. You have to try and create a pool of capital and then make it perform.” But it all begins from an individual notes Aly-Khan; “If you run your life well you can also run your money much better.” The entrepreneurial culture in Kenya has seen the growth of micro, small and medium enterprises across the country. “Kenyans are a very resilient and highly entrepreneurial people. We are essentially capitalists. If you drive from Nairobi to Nanyuki, you see people buying and selling things along the road – these are traders who would have been on the London stock market but instead they are on Thika road.” Sadly, notes Aly-Khan, the Kenyan entrepreneur has had to teach themselves skills in adversity. The main challenge for many investors and entrepreneurs observes Aly-Khan, is the erratic nature of Kenya’s economy. “We have a stop-go economy. Since independence, the economy has never grown fast for a long time. This growth does not mean growing at 10 percent for one quarter but for 10 continuous years.” Aly-Khan further compares Kenya’s economy to a car engine that suddenly starts then slows down. This precarious trend has had a negative impact – investors thinking medium-term. “It means investors have very unrealistic expectations of returns. In a way, we need to retrain our mind and think long-term because it is going to pay off many times over.” This tendency for investors to think short-term has fuelled the speculative behaviour in the Kenyan stock market. “The investor should learn to be consistent, first go for small wins.” What does Aly-Khan think about money? “I am philosophical about money. I view it as a journey with lessons to learn along the way. I am philosophical because the nature of a trader is there are times you will make loses and if you are not so philosophical about it, you wont be able to navigate your way through it.”

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The best time to INVEST •

•

Start now! The younger you are the better because you have a better advantage. Understand yourself – are you a risk taker or you are someone who doesn’t like taking risk? Create free capital and know the return you will be getting - be intellectually curious. Build a network – what is the value of your networks? Can

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•

they assist you in situations? Create an eco-system around you that helps you and adds value. Don’t get swayed by shortterm opportunities

3 investment tips • Be disciplined • Don’t give money to people you don’t trust • Think out of the box

COVER STORY

at a glance 2012 promises to be a very eventful year. What does Aly-Khan think about interest rates, elections in Kenya and the US, a weak shilling, and the Euro zone crisis?

arole: Next year we have an election, what does that mean? Aly-Khan: A quick look at trends – out of the last four elections, three have gone bust. That is in 1992, 1997 and 2007. You can see we have a bad track record; if this was a student you would not bet on him. You can already feel that everybody has been hard wired to look at it that way and that is why you see the economy slowing down. Look at the political economy now; before they were taking KSh 20 from us, now they are taking KSh 40 - you can see that in the maize prices, why are we paying maize price 50 percent higher than global prices? We have a racketeering economy that charges us more and more as we head towards an election and sadly, it doesn’t deliver. We are in a very high risk moment and you can see it by how the shilling and the bond market are behaving, you can feel the pressure. However, there is hope. There is a new economy made up of extremely exciting and smart entrepreneurs. That economy is at the grassroots – the villages made up of a young population that is vibrant and very active presence on social media.

In times of adversity, great businesses are built. An entrepreneur doesn’t not do well because the economy is doing well, an entrepreneur does well because he/she is smart, they have a good idea and they are making it happen. The correlation between the economy, elections, and entrepreneurship isn’t that clear. What about the US election? The US election will not really have a huge impact on us. In terms of what President Obama is doing, we should just keep a keen eye on what is happening. For example, why have they sent soldiers in Uganda to look for Kony? Secondly, the US is paranoid about China and their strategy is to roll back China in Africa. What we saw in Libya was a roll back of China – about 35,000 Chinese employees were evacuated in 72 hours! Next year we will see a proxy war between China and the US. What is your take on the shilling and how it behaved a few months back when it exchanged at KSh 107 to the dollar? What is the problem? The dollar is not to blame. We are running a deficit; for every 100 shillings we are spending we are only getting

90 then we have to go look for 10 shillings – that is the problem and it is not sustainable. We import more than we export infact, all our exports cannot even pay our fuel bill hence we have to look for the short fall somewhere else. The rain started beating us when the lenders noticed that inflation rates were climbing and they were getting a little return. At the beginning of the year, the Central Bank Governor reduced interest rates and every investor I spoke to said it was a bad move. The shilling went down because we are borrowers. The solution is to look at ways of exporting more through value addition of our products. Secondly, we must do something about the fuel bill and explore geothermal, wind and solar energy. Unfortunately, our economy is correlated to weather, when there is a drought we get affected and therefore that is another issue – food security. With a bit of irrigation we can feed ourselves and export. If we don’t change the trajectory of our public finances - how we are managing our current account deficit, we will remain dependant on the kindness of others. We have to reorganise, make tough decision, and prioritise.

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COVER STORY How will the shilling behave in 2012? I think the shilling will settle around KSh 88 and 95. However, like I explained earlier, the Shillings fortunes depend on the weather. If we face another drought, all bets are off. Then there is the issue of fuel and political risks which are important factors to keep our eyes on. With Greece going broke and the Euro zone in a crisis, what does that mean for the economy? To be honest, we are staring at another recession. 33 percent of our exports go to Europe. We are tied into Europe at the same rate China is tied into Europe. I think the European Union is going to break up and tip Europe into a recession. We have to plan for that situation. It will Interest rates have gone up. What will be the impact? Businesses can not take 10 percent interest hikes and it remains business as usual. Everyone has borrowed – all of us are exposed. Sadly, it will take us three months before we realise we cannot afford it. We saw what a high interest economy did in the 1990s. What does this mean to borrowers? For a business if you are heavily financed you have to reduce the balance sheet. If you are low margin, high financing business you have to look at it again and see how to shrink your balance sheet and manage it better. Be aware of the cost of money – ask yourself if it makes sense in the current environment. If you have to beat the 26 percent cost of borrowing, it does not mean you earn 26 percent, it means you earn 46 – 50 percent! You must be aggressive and ensure you maintain that growth to be able to pay off the loan without eating into your margins. Play a bit more defensive – ensure you are able to meet your obligations and if you are struggling, communicate with your bankers and explain, and seek their advice. It is in their interest you succeed. How can financial institutions support businesses in this high interest economy? Small and Medium size Enterprises are huge drivers of the economy. I believe entrepreneurs are committed to paying the money. If I was a big bank lender to the SME sector I would make sure I know what is going on in the businesses we have lend to. Bankers should support them. Avoid sending threatening letters and instead get in and find out how the business is doing and provide assistance in management and business related areas to enable them weather this storm.

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DECEMBER 2011-JANUARY 2012

COVER STORY

How KENYAN ATHLETES have invested their money

PAUL TERGAT

TEGLA LOROUPE

PATRICK MAKAU

DECEMBER 2011-JANUARY 2012

MANAGEMENT

COVER STORY By DENNIS MABUKA

PAUL TERGAT

e brought Kenya fame. The five times World Cross Country champion, is leading by example in the investment world of Kenyan athletes. Tergat, who is regarded as one of the most accomplished longdistance runners of all times, celebrated his biggest success when he became the first to run the marathon in under 2:05 hrs (2:04:55) in Berlin in 2003. He won five cross country world championship titles in a row, twice finished second at the Olympics in the 10, 000m and set world records on the track as well as on the road. The 40-year-old has a bunch of investments ranging from 100 hectares of farming land in Kabarak and shares at the Nairobi Stock Exchange. “The athletics career is very interesting. If you are not wise and careful, you live to regret. But with proper planning, humility and vision, life can never be the same again,” says Tergat. The veteran athlete admits that getting abrupt riches can be very overwhelming and that majority of the runners of yesteryears have harrowing tales about a drastic change in lifestyle – with money and without – even to afford a meal. “That is why we think it’s time Athletics Kenya (AK) comes up with a body within it to deal with advisory and investment issues concerning upcoming athletes.” Tergat has invested heavily in the stock exchange with shares in Safaricom, Kenya Commercial Bank, Eveready Company, Kenya Airways among others. Apart from the land in Kabarak, Tergat also has another piece estimated at 100 acres in the outskirts of Eldoret town mainly for farming. He also has a three storey building in Kabarnet town that houses Sports Line Hotel and a computer college named Cross Excel. Tergat is also the publisher of the monthly Athlete Magazine. He also runs Paul Tergat Foundation which he

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founded in 2005 to help disadvantaged Kenyan talent. Tergat, who doubles as the Good Will Ambassador representing the UN, has been instrumental in helping hunger stricken families in poverty and war-torn areas.

TEGLA LOROUPE

he is referred to as the mother of Kenya’s women marathon running. Loroupe was the first Kenyan female to set a world best in the marathon. Loroupe has used most of her earnings in setting up the Tegla Loroupe Peace Race, an organization that encourages peace and reconciliation amongst warring communities in Kenya, Uganda, Ethiopia, and Sudan. Asked why she opted to invest Loroupe says, “We invest because you cannot run all your life, there comes a time when you slow down. Athletics is dynamic, new stars are born every day and age catches up with you at some point and you slow down. Investing is a cushion when cheques are no longer coming in,” adding that athletes want to be like any other investor. “Athletics is our business: you have to build a foundation or you will go back to where you started from before athletics.” Since the inception of the Foundation, Loroupe introduced a motto; “Trade Weapons for Running Gear.” She says she decided to invest her earnings from athletics into the organization because of her love for peace among Kenyans and their neighbours. “I am always proud because the initiative is achieving targeted goals. Everybody loves peace and it is prudent for every Kenyan and the rest to live in peace. We will work hard to bring people together.” Loroupe has invested $150, 000 in the Foundation which has gone into building a boarding school and sports centre in the Rift Valley town of Kapenguria for disadvantaged children from nomadic communities in East Africa and the horn of Africa. The Peace races have also discovered new talent like top athlete Pauline Korikwiang.

DECEMBER 2011-JANUARY 2012

PATRICK MAKAU MUSYOKI

scape from a life of squalor is what inspired World Marathon record holder Patrick Makau Musyoki to find himself

firmly fixed in the apex of the men’s ultimate distance running. Makau blew away Ethiopia’s running legend, Haile Gebreselassie’s 2:03: 59 world record with a time of 2:03:38 during the World Athletics Championships held in Berlin in November 2010. “I wanted to do anything in athletics that would help me out of poverty. I grew up under a lot of hardship and was only interested in getting a better life. When I started out on the road and saw how much money it brought, I decided to go on. My earnings from athletics have helped my father’s family and improved our lives.” However, cognizant of his roots, Makau has taken measures to ensure that a number of youth from his Manyanzwani village, Tala Division, Kangundo District in Eastern Province are actively engaged in gainful employment.“At the moment, there are about 60 young people working in my estate with many more getting opportunities whenever activities peak,” he says. Makau’s economic interests include real estate, masonry, and farming. He started earning money during the second half of 2007, under the management of Posso Sports, and his winnings, signing fees and Adidas endorsement deal net him well into six figures. Makau reckons that it is possible to combine training and business. His first substantial business investment was a 10-unit apartment complex in Nairobi. Together with two other Jimmy Muindi and Patrick Ivuti, they have set up a training camp in Kangundo for developing distance runners.

COVER STORY

The devil is IN THE DETAILS

Education policies are a common way for parents to save for the future of their children; but what happens when the policy owner changes goal posts? By: DENNIS MABUKA

ducation is the key to success, goes the axiom. Wanjiru Mwenda had a dream; she wanted her son to study aviation. To prepare for her son’s education, she took an education policy so that by the time her son, Peter, was through with his primary education, the money invested would be enough to see him complete secondary education even up to university. After shopping around and weighing her options, she decided to take a twelve year education policy from a well established insurance firm, and immediately started paying a monthly premium of KSh7, 000. However, 10 years later, Peter was hospitalized after a deadly accident that almost cost his life. For his survival, he required an urgent operation and the treatment cost a tidy amount. After exhausting all her options, Mwenda decided to use the money she had intended for her son’s higher education. “They started using new terms that I had not heard at the preamble and told me that it was impossible, until maturity stage was reached and withdrawing meant no bonuses and my twenty five percent of my contributions would be deducted,” narrates Mwenda adding, “a whole ten years of illusion that my money is swelling and yet I was making a loss.” In desperate need, she had no option but to take the abridged money. “It is very important to do your homework and be aware of all the pros and cons as during induction they (insurance agents) will only tell you what you want or need to hear as their sole purpose is to market their product,” says Mwenda.

Blown out of proportion Susan Mathenge, a Financial Adviser at Old Mutual Kenya, has a different take in response to Mwenda’s story. She says the matter has been blown out of proportion owing to people not understanding the whole concept of insurance. “When most people think about insurance, they probably think that it is a way for insurers to make money out of people’s fear but this is an inaccurate notion. If anything, it is the policyholders that make the most from insurance benefits, and insurers are just there to ensure that you make the commitment to protect yourself.” Mathenge explains that there are numerous benefits that you stand to gain by having yourself covered, and it is almost impossible to exhaust them. She explains, “Like at Old Mutual, if you stop paying your premium before maturity of your plan then your withdrawal value will be a percentage of your accumulated sum and if you become disabled or die as a result of accident, then we pay your premiums for the next ten years or until the end of the policy term…whichever comes first.” She also notes that insurance companies face enormous risks. “There are risks like a depreciating economy, high inflation, and low market prices. In the case of inflation it always destroys

value and creates recessions. Although we believe inflation is under our control, the cure of higher interest rates may at some point be as bad as the problem.” Bernard Obuoto, a Financial Planner at Jubilee Insurance says in the case of “Rafiki Halisi Education Plan”, a person can only lose his or her investments if no money is remitted as obliged for a period of 36 months. “You can only be assured of getting profit if you pay your monthly payments for up to three months onwards. However, in a situation that you stop paying before the aforementioned period, you definitely lose 80 percent of your savings.” He says one of the main risks of investing is that the economy can go south, citing the market bust in 2000 and the terrorist attacks in 2001. “The economy settled into a sour spell. A combination of factors saw the market indexes lose significant percentages. It took years to return to levels close to pre-9/11 marks, only to have the bottom fall out again in 2008-09.” If you intend to take up an insurance policy, conduct your research based on your needs and goals, and talk to most players to find what conditions they have. Email: dmabuka@yahoo.co.uk

DECEMBER 2011-JANUARY 2012

MANAGEMENT

2012 THOUGHTS

The year of the DRAGON PROMISES TO TITILLATE 2012, the year of the dragon, according to the Chinese calendar, promises to be a stimulating year in East Africa and the world writes AL KAGS. Politics The news in East Africa is going to be awash with electioneering as Kenya and the United States go into national presidential elections. In Kenya, the elections are going to be exciting as we choose new leaders during complicated, multi-layered polls â&#x20AC;&#x201C; the first under the new constitution. For the first time since independence, Kenyans will be electing senators and governors. Most interesting will be the number of professionals and business leaders who will be trying their hands in politics. Already, Evans Kidero of Mumias Sugar and Jimnah Mbaru have declared their interest. The US elections also promise to be exciting as Barack Obama who will be facing serious opposition from various candidates, not least of whom is another black man, Herman Cain, who is set to be supported by the normally conservatively white, Republican party. While the previous US elections caught the imagination of the world by having the first black man to credibly go for the presidential seat, the 2012 elections are going to focus more sharply on the policies of the candidates - especially if both are black. In Tanzania, news around the new constitution is likely to dominate the public spaces, as the country works on promulgating its new laws by 2014. The East African Community (EAC) is assured to admit at least one more country into the community, after the separation this year of Sudan, and its southern counterpart. The economy According to analysts at www. africaneconomicoutlook.org, the East

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African economy will continue on a steady growth in 2012. In Kenya, the economy is more likely to slow down because of a number of factors. First, many investors are managing their investments with caution as they are not sure of the outcome of next years election. As the country changes its administrative boundaries and rules, investors are taking on a wait-and-see stance to observe what the new environment will mean for their businesses. Additionally, it remains mutely stated that with the shadow of the 2007/8 electoral skirmishes in Kenya, investors want to see some assurances of lasting peace before they can truly rebound. The bad news for Kenyans is that inflation is expected to continue upwards as electioneering money floods the market and production is greatly reduced - in part because of elections but for the most part because of high energy and oil prices as well as the climatic conditions which are likely to continue to be erratic. East African traders have a reason to be hopeful because of an effort spearheaded by Trademark East Africa and the EAC to develop a system that will reduce the costs on imports greatly. Currently, it costs about five times more to transport a container from the Mombasa Port to its destination in

DECEMBER 2011-JANUARY 2012

Uganda, Rwanda, or DRC than it costs to ship it to Mombasa. Under the new system, the EAC would harmonize all costs to ensure that traders pay such costs as bonds for the good once at the port (as opposed to in every country of transit) so as to protect both the trader from high costs and the countries from loss of revenue from goods that disappear in transit. As far as foreign direct investment in East Africa goes, some Indian companies are expected to set up in East Africa, the most prominent of these being Mukesh Ambani of the Reliance Group. Sport For soccer enthusiasts, the 28th edition of the African Cup of Nations will be co-hosted by Gabon and Equatorial Guinea in January and sadly, there will be no team from East Africa. The UEFA European Cup is going to be held in Poland and Ukraine from June 8, 2012. London hosts the Olympic games in 2012 for the third time since 1948.

2012 THOUGHTS

bucket list

It is that time of the year again when you have to set personal target. NANA WANJAU shares her 2012 to-do list.

hat do I want to do with my one wild, precious life? Plenty! They say the best way to get action on your to do list, is to get other people to hold you accountable by vocalizing your intentions. So here goes, hold me accountable to my 2012 bucket list. I use my personal values as a guide; however, I believe you will be inspired with ideas for your own bucket list. Spiritually: I will rejoin my Home Group Fellowship weekly Bible study - these fellowships are extremely powerful, healing and renewing and I also commit to teaching my children to love the word of God. I intend to take a yoga class both for my spirituality and core body strengthening, and take a weekend silent retreat, to listen internally, heal my past, forgive and live in the Now. Education: I will learn something new and also focus on perfecting skills already acquired. I will join Toastmasters to become a better public speaker and conquer my fear of the same. I discovered my passion – fashion – by enrolling in a course to improve my skill, I will take a vocal class to be able to sing at a public forum, and also sign up for a self defence class. I learnt to play golf this year, so I will focus on practicing my swing and score in relation to par. Travel: I will visit a place I have never been to - Bangkok, they say “makes a grown man humble” and I would like to see this. It’s also a great shopping destination and the cuisine is exceptional. Practice Uungwana: I was inspired by Ken Njiru - give way in traffic, give up my seat for elders, greet every single person

with a smile, make the effort to know their names and I also intend know all my neighbours, tour four places in Kenya I have never been, and visit city parks and monuments with my children. People I want to meet: I want to meet, recognize and acknowledge Kenyan Athletes like Vivian Cheruiyot, David Rudisha and Edna Kiplagat. I also want to have breakfast with Dr. James Mwangi, Tabitha Karanja, Titus Naikuni, and the Prime Minister Hon. Raila Odinga. Personal finance: I will hire a financial planner to help me review my financial health and create a financial strategy. Investment: I intend to locate a villa, along the Mediterranean coast. Family: I will create a trust fund for my children. As a family, we will create our coat of arms, vision and mission statements. I will take them to visit both their maternal and paternal great-grandparents. You can create your Family Tree or write a letter to each of your children telling them what you want them to know about your life and the lessons you have learned.

Network/ Friends: I have very dear relationships going back into my primary years. I will be working on my international network; locating, documenting, developing and nurturing these relationships. My community: I initiated a program called “Engaged Parenting” that brings parents, care givers, teachers and child development experts to discuss challenges facing our children and find workable solutions. In the New Year, I shall cause this program to be replicated in at least 10 schools and churches in Nairobi and its environs. Nana Wanjau is a Systems Analyst, Developer and Trainer. She is the Marketing Director (Consultant) for Taxi Ad EA. Email:mvnana26@gmail.com

DECEMBER 2011-JANUARY 2012

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TACTICS

Get that deserved CAREER BREAK Eileen Laskar

y the time I met James about 18 months ago, he had changed jobs three times over the last five years, from a chief accountant to head of internal audit and now a finance manager. He had applied for a Finance Director’s (FD) position, but after the interview, he was offered the position of a “Finance Manager” with a promise to be considered for the FD’s role if he proved himself during the six months probationary period. On the 9th month, the company re-advertised for the FD’s role and when he sought audience with the HR manager, he was advised to apply for the position as an internal candidate. Unfortunately, the job went to an external applicant, who actually had lower qualifications than James (he holds an MBA, CPA-K and with 17 years’ experience). James was disgruntled and was considering quitting and looking for another job, or set up his own finance consultancy firm. As far as he was concerned, he rightfully deserved the FD’s job, and nothing short of it. Consulting with me was just the one thing he needed to do before making up his mind on the next steps.

James, this was vague and evasive and he needed concrete answers from me. From a coaching angle, the HR feedback was illuminating, but I definitely needed to validate and crystallize her sentiments. I started off the diagnostic process by sharing with James the fact that performance at the FD’s level, like many other senior leadership roles, would be measured by several other parameters beyond the technical capability. With these thoughts in mind, and using coaching tools, we were able

A revealing Journey begins… We scheduled a diagnostic coaching session with James to explore possible barriers that could be standing between him and the next level, and hopefully come up with a plan to enable him go for what he really wanted and felt he deserved. According to the HR manager as to why he didn’t get the position, he needed to “step –up” his game and be “felt” in the organization. According to

MANAGEMENT

DECEMBER 2011-JANUARY 2012

to test James’ leadership abilities in a systematic yet revealing manner. Excerpts of the revelation Right from the moment I started to interact with James, and listening to the way he articulated his points and opinion, I could tell that he lacked strategic tone in his communication style. As he highlighted his achievements as a manager, it was evident that James had excellent technical skills but he lived in his “finance” cocoon. As long as the

TACTICS finance docket– specific obligations like controls, budgeting, reporting, and systems were working perfectly, James was home and dry. He openly wondered why he needed to interfere with other units in the business when there were other managers hired for that specific purpose. James had not yet taken the responsibility of taking his “brand visibility campaign” beyond the walls of finance department. It is no wonder that he could not be “felt” leave alone being “seen”. I moved further to evaluate his interactions with senior leadership and discovered that he hates meetings with senior leadership. His dismissive opinion stated that people at senior leadership tend to be unrealistic and live in their own world. Besides, there is so much to be done in finance department and meetings simply waste time. James lacks ability to hold value-adding senior level interactions and as such he has been denying himself opportunity to develop strategic thinking, build relationships, and learn how to influence the significant others. When I ask him to share some of the proposals he has been able to drive in the organizations he has worked, he shares very operational stuff which I am careful not to downplay, but they are clearly not “FD” level stuff! Naturally and with ease, I shift the gear and start discussing the external environmental issues affecting his company and the industry he is working in a bid to evaluate his industry knowledge and the future prospects. From the body language, I realize that James is now getting quite uncomfortable, and I wisely change the topic. But not before I note down the gap; that I cannot expect him to make strategic contributions to the business when he lacks strategic view and knowledge of the emerging environmental issues. As I move towards close, I bring in case scenarios mirrored on “the day in the life of an FD”, while asking him what he would do in each of the cases and many intertwined gaps emerge including weak problem analysis, decision making ability, and team management. The last one here is worth elaboration; he views performance to be defined by finance specific deliverables and he lacks ability

to lead his team to see “outside the box” perspective. About 2 hours into the discussion, I take James back to the beginning and I ask him to reflect on the feedback remarks he had received from the HR manager regarding the need to “step – up” and be “felt” in the organization. To my surprise, these sentiments are not vague anymore. James has had several revealing moments during our discussion and he goes ahead to share his revelations as we jointly list them as gaps that he needs to address immediately. My role at this point is to help James refine his thoughts and ideas for purposes of designing an objective leadership coaching intervention. James’ assignment towards the FD’s role 1. Develop his capability to hold senior level interactions, his strategic thinking ability, leadership demeanour and protocol. 2. Start thinking of value addition to the business beyond the technical domain through taking initiative to understand the emerging multi - dimensional issues within the external environment sphere. 3. Develop leadership language and ability to communicate with a strategic tone and protocol that befits the strategic level in the organization. For the next 6 months, we get involved in a very exciting leadership coaching program where we set progressive goals in as far as bridging the gaps listed above is

concerned. I offer leadership resources, tools, frameworks and insights which help James to identify internal opportunities and platforms for fully developing his potential. Week after week, month after month, James moves from one summit to the next. From the kind of interactions he is holding with the significant others, and from his contributions to the business which have taken a progressive strategic shift, both of us know that he is now ready for the FD’s position. But is this really effortless as it may seem to any outsider? The answer is NO! There are many professionals who have worked hard to earn their qualifications and gained immense technical experiences but are stuck at the mid-level management. They too need to “step-up” their game, and be “felt”. Each one of them may have a different invisible “glass ceiling” that may not necessarily be similar to that of James, but his case definitely offers them some insights for reflection as one plan for 2012!. Email: eileen.laskar@careercentre.co.ke

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DECEMBER 2011-JANUARY 2012

MANAGEMENT

TACTICS

Handle the office bully, TACTFULLY Susan Bantu Q

: I work for a media production company as an Advertising and Branding Executive and have been in this position for three years. My colleague was elevated to the Advertising Manager position one year ago and that is when my nightmare began. This manager is on a mission to discredit me and many others in our department by setting advertising targets that are higher than usual followed by threats of being fired if we do not meet them. I think am targeted not because of my performance, but because I cope well with others at work and because I had also applied for the same management position. Recently there was an opening for a brand training opportunity in South Africa and the manager deliberately forgot to forward my application to the Director. My smart dressing is a constant recipe for ridicule and the manager usually makes comments like “you have lots of time to dress yourself other than work…. you think you are better than me….. If I want I can reduce you to tatters in a flash...” My colleagues are witnesses to this and sometimes victims themselves but no one dares to confront her. The manager makes threats about firing us and tells us there are too many applications on her desk of people wanting our jobs. I hate my place of work but it’s hard to leave because there are no available jobs. I often leave work late because of all the extra work given and my family is feeling neglected by my constant absence. I am so depressed and cannot sleep or eat well; I shiver when she calls me to her office or approaches me, because I’m afraid of her lethal reproaches. She is so critical and full of accusations. I’m thinking of informing the Managing Director even if it means losing my job. What should I do? Mercy

MANAGEMENT

: Mercy, bullying is not merely limited to some excitable high school students. Bullying is persistent and exhibited in the form of aggressive verbal behaviour like being shouted at, being humiliated in front of others and through warnings and threats. Bullies also attempt to spread malicious rumours, belittle your work or opinions, remove areas of responsibilities without reason, constantly change work guidelines so that you overwork. They may also impose impossible deadlines that will set you to fail, withhold necessary information or blocking applications for training, leave or promotion. They may intrude into your privacy by spying or going through your personal or work equipment. What should be comforting for you is that bullies fear exposure of their inadequacy and their incompetence. It is difficult for them to accept responsibility for their behaviour and in this case your manager may feel threatened since you competed for the same position. It seems your workplace is a nightmare for you. The manager is placing unreasonable expectations to set you to fail. The outward threats and ridicule are definitely bullying. Take care of yourself lest psychological and physical problems pervade you. You have symptoms of stress, reduced self-esteem, phobias, sleep and digestive disturbances, and increased family tension. Do not allow your work to impede on your health. You need to take action by first recognising that you are being bullied and that the problem is your manager and not you. If you are doing your job well there is no point internalising the criticisms and threats. The purpose of your manager’s criticism is control! You may feel embarrassed, guilty or afraid of your boss, this is a normal reaction. Threats and intimidation are well-known tactics of control. This is how many abusers control

DECEMBER 2011-JANUARY 2012

and silence their victims. Do your homework and explore alternatives to the issue before you make the drastic step of reporting the matter to the director. Keep a diary and indicate the nature of the bullying: the dates, places, times, what was said or done and who was present, and obtain copies of time sheets, emails or letters so that when you decide to report the matter to the boss, you will use them to contradict the managers accusations against you. Expect the manager to deny and perhaps misconstrue your accusations; it’s good you have witnesses in your department. If you cannot talk directly to your boss find another trusted senior person in the organization and share your sentiments and together find a solution to the problem. Keep in mind that the management may side with the manager therefore, don’t put your hopes high that justice will be done. You also need to build yourself a support network. Colleague support is great, but also difficult to find. Once you take action against your manager he will also take action. This may cause division within your department by telling colleagues to distance themselves from you or by playing on their vulnerabilities whilst raising doubts about their job security. Expect your work colleagues to refuse to support you because they too are scared they could become the next victims. Be rest assured that you have an understanding director who is willing to listen to employee grievances, then your colleagues are likely to disclose the happenings. My best advice for you is to stand up for yourself and do what you discern is right. Do not suffer in silence because you are afraid of losing your job. You should remember that bullying is not a personality clash rather it’s an infringement of your worker rights and a denial of your professionalism. You are entitled to be treated with dignity and respect at all times and believe it or not, you are entitled to tranquillity at work. Email: wanbantu@gmail.com

TACTICS

Tips for securing your SMART PHONE By THOMAS ODOL

ith the continued increase in the uptake of Smart phones you should consider the security issues. Smart phones are like mini computers. They have the ability to hold data which is accessible via email, a cloud based web app or some sort of internal or external memory storage. Smart phones are valuable and you need to consider what would happen should your mobile device fall into the wrong hands. Here are five tips on how you can secure your Smartphone

1. Use password protection It is easy to set password protection on your phone. It is most likely under your phones security settings. If you cannot find the option check online or your phoneâ&#x20AC;&#x2122;s manual to see how to enable this. Most people password protect their computer but do not feel the need to for a mobile device however this is the first security step you should take.

2. Remotely wipe phone data After you have secured your mobile phone with a password or pass code you may still want to further protect the data stored on your phone with remote wipe. Remote wipe will wipe the data on your phone and restore all the factory

settings. This is not something you would want to do unless you are certain you have lost your phone. To set up remote wipe if you have an iPhone you will need to sign up for a paid account with MobileMe. Then you must set up your phone to enable the wipe should you need it. Android phones running 2.2 have remote wipe built in, but you will also need Exchange. Because remote wipe using Exchange can only be done by an administrator of Exchange, a better option would be to use the Mobile Defense app. Itâ&#x20AC;&#x2122;s a free app from the Android Marketplace which will allow you to perform the wipe from the Mobile Defense website. If your phones uses Windows 7 phones it can be remote wiped using Outlook Web Access.

3. Do not save sensitive data If you use your phone to access your internet banking or log in to all your favourite sites, do not set your Smartphone to auto-remember passwords. Should your phone get lost or be picked up by someone else your account can be easily accessed. Many people have their home and address stored on their phone this information could be used fraudulently if your phone was lost or stolen. However, using a password or remote wipe tools, as described above, you can prevent your details being leaked.

4. Watch What You Click Smart phones like computers can be affected by malware, computer viruses and phishing scams. If you receive a suspicious email or SMS do not click on any links, just as like you would on your computer. Phishing scams can be used to steal your passwords and important information and are often very cleverly disguised as being from your bank.

5. Be careful what you install If you download or install a new app make sure it is from a trusted source. The benefit of Smart phones is that there are thousands of applications and games available to extend their functionality. Only use official app stores otherwise you may find some malicious code injected into your app which will pass a virus onto your phone. Email: thomasodol@gmail.com

DECEMBER 2011-JANUARY 2012

MANAGEMENT

TACTICS

A real economic “DIAMOND IN THE ROUGH”

By: MACHARIA KIHURO

promenade along the streets of the city of Kinshasa in Democratic Republic of Congo (DRC) conveniently disarms you. Contrary to the grim picture often painted by the media, you will not meet ancient ruins from the much hyped wars. Undoubtedly the biggest nation in Africa today after the sub-division of the great Republic of Sudan, DRC is home to vast natural resources and

MANAGEMENT

mineral wealth. The biggest incongruity though is that the DRC is one of the poorest countries in the world. As per World Bank’s 2010 figures, DRC has a per capita annual income of about USD 194 which is amazingly low compared to Qatar the best ranked nation at USD 179,000. This is the stark reality. In terms of its untapped mineral wealth, the DRC is one of the richest countries in the world. Its soil is reputed to contain every mineral listed on the periodic table. These minerals are in concentrations high enough to make immense amounts of

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cash. Yet, thanks to grand corruption, gross mismanagement and superfluous wars the country remains a pale shadow of what it ought to be. If you want to measure the pulse of an economy, just evaluate the efficiency of its financial system. DRC’s financial system is still at rudimentary stages. It is believed that credit to the private sector accounts for less than 3 per cent of GDP with most of credit being informal. The country has one of the world’s lowest bank penetration rates estimated at only 6 deposit accounts per 1,000 adults,

TACTICS and bank loans to individuals account for less than 5 per cent of total bank lending. But the most interesting aspect of this financial system is the extent that the US Dollar has been assimilated as a currency of most transactions. It is estimated that as much as 70 per cent of the currency in circulation is in U.S. dollars and outside the banking system. The trading of stocks is a fairly exotic concept in this nation with no formal stock exchange in place. DRC is a big market. A population of the estimated at 71 million people in 2011, will whet the appetite of any serious business manager. This is only second to the huge Nigerian population. Congolese especially in Kinshasa speak more of French and Lingala as opposed to the Eastern side that is more inclined to Swahili and a bit of English. Like they teach you in business school, one of the major challenges of doing business across borders is language barriers.

Despite the fact that shelter is one of the conventional Maslow’s basic needs, housing is still a major challenge in the country. Like in many African nations accessibility to housing still remains one of those lofty ideas well articulated in strategic papers. A three-bedroom apartment that will go for a monthly rent of about USD 1,000 in the upmarket Nairobi will cost you an average monthly rent of about USD 3,500 to USD 5,000. The explanation is simple; the supply is way below the demand. The hotel room charges also mirrors the challenge as well. The hawk-eyed foreign investors are currently watching the happenings in the political arena. The country is headed for a presidential election expected in November this year. Joseph Kabila is facing a fragmented opposition front. An agile business must take keen interest in the politics of the country it operates in. Such an institution must invest in a robust

risk management tool-kit that ensures proper political risk mitigation strategies are in place. Lack of such measures can lead to awful consequences that are hard to even contemplate. One arrives at an indelible conclusion that truly an economy almost obediently follows the politics of a nation. There are numerous investment risks that a potential investor needs to confront head-on in the country. But like the English say, “An ounce of prevention is worth a pound of cure.” An agile organization never runs away from risks. They craft credible strategies to mitigate them. Indeed well-calculated business risks are great opportunities in the future. Indeed, after a thorough analysis, you will probably agree that DRC cuts an image of a real economic “diamond in the rough.” Email: jkihuro@gmail.com

Fact file on Democratic Republic of Congo (DRC)

emocratic Republic of Congo (DRC) formerly Zaire is located Central Africa, north east of Angola. It occupies a total area of 2,344,858 sq km, with land occupying 2,267,048 sq km and77, 810 sq km Water. Climate in DRC varies from tropical; hot and humid in equatorial river basin. In the southern highlands, it is cooler and drier while in the eastern highlands it is more cold and wet. The country has 10 provinces with a population of 71,712,867 people with over 200 African ethnic groups the majority being Bantu. The four largest tribes are Mongo, Luba, Kongo (all Bantu), and the Mangbetu-Azande (Hamitic) which make up about 45 per cent of the population. Languages used in Congo are French (official), Lingala(a lingua franca trade language), Kingwana (a dialect of Kiswahili or Swahili), Kikongo and Tshiluba. Different types of religions are found in DRC: 50 per cent, Roman Catholic; 20 per cent Protestant; 10 per cent

Kimbanguist; 10 per cent Muslim, others syncretism and indigenous beliefs which occupy10 per cent. The life expectancy of DRC is 48 years. DRC reserves of natural resources have given rise to investment opportunities in different sectors. Different industries are involved in mining (diamonds, gold, copper, cobalt, coltan, zinc, tin and diamonds), mineral processing, consumer products (including textiles, plastics, footwear, cigarettes, metal products, processed foods and beverages), timber, cement, commercial ship repair. In the Agriculture sector coffee, sugar, palm oil, rubber, tea, cotton, cocoa, quinine, cassava (tapioca), manioc, bananas, plantains, peanuts, root crops, corn, fruits and

wood. Exports include diamonds, gold, copper, cobalt, wood products, crude oil and coffee. The gross domestic product (GDP) in the composition sector is; 38.7 per cent in agriculture, 26.7 per cent in Industry and 34.6 per cent in services. The real growth rate GDP has risen from 2.8 per cent in 2009 to 7.2 per cent in 2010.The GDP per Capita is $300 (270,000.00 Congolese Franc (CDF)and the Labour force used in DRC is 33.68 million.

DECEMBER 2011-JANUARY 2012

MANAGEMENT

TOP WOMAN

KENYAN WOMAN SCIENTIST honoured at global forum Story by: STEPHEN MBURU

hen Prof. Waceke Wanjohi received a brief email inviting her to Germany to present her research breakthrough to a select top global researcher, including German Chancellor Angela Merkel, she at first dismissed it as just a fake invite from someone who could have been out to take her for an intellectual ride. But the invitation to the Kenyan scientist from Dr. Nathalie Martin-Hübner, the Managing Director, Germany’s Falling Walls Foundation, could not have been more genuine. Dr. Martin-Hübner, would explain that the Falling Walls conference is an annual global gathering of forward thinking individuals from 75 countries. And that each year, 20 of the world’s leading

Prof. Waceke Wanjohi

MANAGEMENT

scientists are invited to Berlin to present their current breakthrough research which could dramatically transform life worldwide. The conference seeks to: connect science with industry, politics, media and culture; identify trends, opportunities and solutions for global challenges; make research understandable to a broad audience; and, inspire people to break down the walls the world faces. The initial conference was held in 2009 on the 20th anniversary of the fall of the Berlin Wall to celebrate the historic day by looking into the future and getting an understanding of the world of tomorrow. The conference is run by The Falling Walls Foundation, a non-profit charity that is supported by the German Ministry for Education and Research and the Berlin Senate for Education, Science and Research. Behind the recognition And just as plants — Prof. Wanjohi’s research subjects —do not know when she is researching on them, the don had no idea she was the subject of study by the European foundation. The ‘study’ had found out Prof. Wanjohi, who has more than 20 years experience in teaching nematology aka roundworms, in universities, has since developed academic programmes and labs, as well as published internationally. She cofounded the Nematology Initiative of East and Southern

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Africa (NIESA) that is “effectively improving crop yields in smallholder farming systems in Kenya, Uganda, Tanzania, Malawi and Zimbabwe by effectively using environmental friendly strategies to control the worms.” Besides, Prof. Wanjohi is a fellow of the premier global Society of Biology, having been elected to the society in 2011. Perhaps, it is due to this background that the Foundation asked the Kenyan to go and show the world the benefits of her approach, which allows less pesticide use and misuse, reduces food risks and environmental damages, and increases the food harvest and ensures food security. And on November 9, 2011, the don, who is the Dean, School of Agriculture and Enterprise Development, at Kenya’s Kenyatta University, was in Berlin where she presented her findings. The researchers had 15 minutes each, to present their breakthroughs. And Prof. Wanjohi, presented a paper entitled: “Breaking the Wall of Food Insecurity: How Agricultural Science Minimizes Nematode Damage in SubSaharan Africa.” “When we refer to somebody as a worm, we are not exactly celebrating his or her relevance in our world. Learning something about nematodes could change this,” Prof. Wanjohi had said. “With approximately 1,000,000 species, nematodes, aka roundworms, are the most numerous multi-cellular animals on earth, having successfully adapted to almost every ecosystem, where they play the most diverse roles. From an agricultural perspective, a nematode may be beneficial or detrimental: the pest

TOP WOMAN

Investment opportunities at Konza City

nematodes attack plants and spread viruses, causing a global crop yield loss of USD 125 billion annually,” the researcher had said. Sentiments on the award “I really felt greatly honoured, and I was really humbled to note that the research I have been doing to minimize the impact of nematode pests on crops has been recognized internationally. Sharing a platform with the Chancellor of Germany, (Angela Merkel) and Prof. Aaron Ciechanover, the Nobel Prize Winner from Israel, was to say the least very humbling,” Prof. Wanjohi told Xinhua in Nairobi upon her return home. “When they (officials from the Falling Walls) sent me the programme, the fact that I was the only African among the 20 invited speakers blew my mind and the importance of the conference sank farther, and from there on, I considered it not just my invitation as a research scientist, but that of my country and Africa as a whole,” Prof. Wanjohi said, adding: “I, therefore, knew I had a responsibility to represent my country and my continent well. I felt it was an honour for Kenya and Africa. The next

question was will I measure up?’ ” Professors are not known to be nervous. But Prof. Wanjohi admits developing a few ‘butterflies’ as she took to the stage stand just before Chancellor Merkel, who holds a Ph.D. in physics, was next to deliver the keynote address. “I was a little nervous before I took to the podium but I encouraged myself that I had to do it for myself, for Kenyatta University, for Kenya and for Africa. And I knew I had to do it well. It was the only chance I had. And I did it. Dr. Sebastian Turner; Founder Falling Walls Conference introduced me as this was the first time to have had invited an African; that helped me ease up. I presented my breakthroughs calmly for exactly 15 minutes,” Prof. Wanjohi said. The don says her peers were keen about the research. “Some of them were getting to know about the nematodes for the first time. Many of them wondered how I have been able to do so much with meagre resources,” Prof. Wanjohi says, adding: “The conference served as a great motivator for me to continue seeking practical solutions to problems facing our country and continent today; that of food insecurity.”

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EXECUTIVE CHAT

MY leadership formula Story and Photos by SAMMI NDERITU his position in the company that has earned him the trophy, but rather the company’s performance. “To bag the award is evidence that says I am a people’s manager whose strength lies in managing many people. In addition, MRM winning the ‘Company of the Year’ award was a demonstration of many years of continuous improvement. Looking at the record of MRM for the many years that I have been in charge, we have been improving continuously through taking feedback internally and externally as well as learning from our mistakes as we have sought to pursue excellence,” says Kaushik.

Kaushik Shah, regional chief executive officer of Safal Group

aushik Shah, regional chief executive officer of Safal Group, has a portrait of the majestic Mount Kilimanjaro wall hanging not just to show the highest peak of Africa, but also to depict him sitting and working while on top of the mountain. As he sits on the mountain, he looks over Safal Group’s businesses, including Mabati Rolling Mills (MRM), in 12 countries and his leadership for the last 15 years has made both him and his

MANAGEMENT

companies excel. Among tens of files neatly arranged on his desk awaiting filing while others await his attention, one of the files is a congratulatory letter from one of his bosses for the award he won as ‘Chief Executive Officer of the Year’ during the Company of the Year Awards 2011. He is elated with this award, one among five that his company scooped. However, Kaushik is cautious not to take too much credit for it and instead points out that it is not just

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A path of continuous improvement During the presentation of his award, COYA Judges’ citation described Kaushik as one who had “successfully integrated people’s ownership and participation in quality and productivity and hence improved revenues and profits.” When he took over leadership, MRM had one line of production for rolling mills while other companies within Safal Group did production of other things in various locations. Kaushik’s first assignment was to modernise its equipments, increase capacity and merge the many different operating units and locations of offices into two areas of operations-one at Mariakani and another at Athi River. Kaushik explains that in regards to quality this was something that needed to be gotten right from the beginning and was specifically necessitated by the requirement to export products internationally. “The only way we could export Zinc Alloy more was to match the standards of the international market. The first country we dealt with was South Africa which was in turn exporting to Australia and for us to collaborate; it meant that we needed to meet Australia’s standards.” Although MRM boasted as being the best locally, its metallic products did not meet the stringent requirements of the international market and in order to achieve this, there was an urgent

EXECUTIVE CHAT need to upgrade its facilities so as to enhance quality, increase production and effectively compete internationally. To achieve this, MRM used various improvement tools among them ‘Kaizen’ for continuous improvement and involvement of people in enhancing quality. ‘Kaizen’ is a Japanese model that emphasises continuous improvement through constant evaluation and change. This constant evaluation and change is realised partly by developing realistic business strategies and communicating them to everyone in the company and following through to ensure implementations. At Safal Group, Kaushik says strategies are developed by a caucus of senior managers who look at where the company is and then do a three year planning cycle which is then deployed to the individual companies. “When planning for a company, views of the company and its senior management in the region are considered and once everything has been agreed on, the plan will be executed for the next three years with review being done at regular intervals. Departments will do this on a regular basis whereas the companies will do their review every six months,” explains Kaushik. The CEO adds that strategic vision and mission are communicated to employees through public ‘barazas’ (forums). MRM has a system where all employees meet in a baraza and take a pledge every day at 7.40am which involves holding hands. These morning barazas have been happening for the last 7 years and according to Kaushik, this is the Kaizen way of making sure that everything in the company is going in the right direction. Achieving his vision and mission When the CEO re-wrote his curriculum vitae in 2002, his mission read “to develop leadership in providing direction, resources and management skills through pursuit of professional excellence in all fields.” Almost 10 years later, he confidently admits that this mission has been accomplished. “Winning COYA this time, I was reflecting on the number of leaders that we have developed and made them available across Safal Group in the 12 countries that we operate in, the company has produced people who have advanced to high executive positions under my

leadership and thus realising my mission, ” he says. He adds; “Management is all about using available resources to the best of your ability. If you recruit the right people, empower them and make sure that they have the right equipments, financial resources and working environment, they will be dedicated to give back the best of their time and commitment. You develop leadership through mentorship, being an example that they can emulate and encouraging your team to be creative and make independent decisions.” Since a leader must be equipped with a set of competencies necessary to perform his/her role well, Kaushik observes that the ability to deal, manage, trust and influence people towards the right direction is important. He adds; “as a leader, you will fail if you can’t lead

and influence the people working for you hence you need to be a hands on person who knows what goes on in your area of leadership. When you build strong teams in your company, you will not have problems when some employees leave the company since projects will continue running as they will not be dependent on one person.” Part of leadership should also involve succession planning and when properly done, a company will never lack someone who can take up the leadership position. Kaushik advises that leaders should not make organisations that are dependent on people because the organisation will suffer when that individual is not there. Email: snderitu@kim.ac.ke

DECEMBER 2011-JANUARY 2012

MANAGEMENT

KIM CUSTOMER SERVICE KORNER

Handle your

COMPLAINT WISELY By AARON JONES

ast month, our article featured a success story about Auto Xpress on Mombasa road. Auto Xpress satisfied customer Havi Murungi by replacing a tire at no cost, thus ensuring Havi’s loyalty forever. Auto Xpress manager Sunil displayed superior customer service skills in dealing with Havi’s complaint and I reiterate my thanks to Sunil for sharing so freely with us. Case of Optica Geoffrey Mungai’s complaint was about Optica on Moi Avenue. Geoffrey complained that his glasses attracted a film over the lenses, making them unusable. In Geoffrey’s letter to me, he explained that he did not receive resolution at the Optica Moi Avenue outlet. I made a visit to the outlet and spoke with manager Anu Bhardwaj. Anu immediately apologized and began to seek out the customer’s records to contact him. I was impressed with her willingness to assist and also find out

MANAGEMENT

why a complaint went unresolved. This is a similar reaction that I received when I spoke with Auto Xpress manager Sunil. It still makes me wonder, why consumers are having such a difficult time getting resolution, yet when I personally go to inquire, I find very helpful personnel. Perhaps it is because I address the management, or perhaps because as consumers we don’t know how to complain. Okay, maybe I don’t believe the latter totally however here is what I found in the case of Geoffrey and Optica on Moi Avenue when I looked a bit closer at the facts. When Geoffrey wrote in he explained that after two days use, the glasses started to develop a film over the lenses. In his letter, he explained that after four days he could no longer use the glasses. Upon returning to Optica he explained his dilemma. Geoffrey claims that he was told by an Optica representative that he must have applied a chemical to his glasses and they could not help him. Geoffrey works in a bank and says he leaves his glasses there and it was not possible to apply a chemical. Geoffrey was shocked by the response from Optica and vowed to never go back. When I made my visit and spoke to manger Anu Bhardwaj, she looked up the client’s contact information while I was there. This was impressive because the outlet was full of customers, many being served while others were waiting to be served. Anu’s willingness to investigate while I was there indicated her level of concern for customer complaints. She spoke with Geoffrey while I was at the outlet and asked Geoffrey to bring in the glasses. Geoffrey returned to Optica on Moi

DECEMBER 2011-JANUARY 2012

Avenue and replaced the glasses at no cost. Upon speaking with Anu, I learned that Geoffrey had actually bought the glasses nearly six months ago and not just days as I had interpreted when reading his letter. Despite the duration in which Geoffrey had the glasses, Anu agreed to replace them at no additional cost. The outcome is great for the customer, and of course for Optica because not only do they retain Geoffrey, but he will certainly tell all who will listen. The question remains, why do many complaints get this far in which a third party needs to get involved? There can only be two reasons. One, as consumers we do not complain until we get resolution. Yes, in most cases at least today, resolution requires persistence. Two, some companies simply refuse to accommodate complaints. As consumers let’s do our part when we do find sources of dissatisfaction. Where necessary, let’s force companies to hear and more importantly resolve our complaints. Looking for Resolution The moment you experience any source of dissatisfaction, immediately bring it to the attention of the company representative. Remain calm and simply talk about the experience or source of dissatisfaction. This will help keep the discussion less subjective and more objective. Many times I will ask the representative questions; do you think this is good service, how would you feel if you were treated this way, is this the image you want to portray for your company? Questions like these help the company representative empathize with your concern. Unfortunately, in many

KIM CUSTOMER SERVICE KORNER “IT STILL MAKES ME WONDER, WHY CONSUMERS ARE HAVING SUCH A DIFFICULT TIME GETTING RESOLUTION, YET WHEN I PERSONALLY GO TO INQUIRE, I FIND VERY HELPFUL PERSONNEL. PERHAPS IT IS BECAUSE I ADDRESS THE MANAGEMENT, OR PERHAPS BECAUSE AS CONSUMERS WE DON’T KNOW HOW TO COMPLAIN.” cases this may not get your concern resolved. If not, ask to speak with the manager on duty. Continue to remain calm and stick to the facts. Refrain from blaming individuals and talk about the experience. ‘The food is cold’ as opposed to ‘she brought me cold food’ is a good example. ‘I bought it from you, not the manufacturer. Why must I wait to hear from the manufacturer’ is another example. If you are still unable to resolve your source of dissatisfaction at this point, ask the manager if they are okay with you reporting the incident publicly for everyone to see the lack of care and service being provided. Notice this is not an opportunity to threaten the business. Threats will only make your situation confrontational. You must remember that you are simply looking for help in resolving what can clearly be seen to be wrong.

Company providing resolution Although I normally provide tips for companies on how to provide customer resolution, please make note of some very simple things that can be done immediately. Give your front line employees the authority to satisfy the customer. If they are unable to do so, equip them with the knowledge and skills so they can proficiently explain the same to the customer. Teach your employees to listen to the customer without interrupting, and to appear willing to help the customer. Even the appearance of wanting to help will go a long way. Look at your internal business process and adjust rules that are of no benefit to the customer. Make returns and refunds easier when clearly warranted. Ensure that your employees know that each customer pays their salary and without the customer there would be no business. Make your company stand

out by becoming known for customer service. Lastly, concentrate on getting your customers to use your products and service more often, while at the same time getting them to stay with you longer. Thank you readers for continuing to share your customer service experiences. Please keep them coming. Thank you business leaders for the improvements that we are starting to realize within customer service. Together, we shall continue to raise the expectation for customer service and help businesses improve their performance. Remember, our intent is not to harm companies but to improve customer service going forward and give companies an opportunity to improve their customer base. Send Comments to: info@jonesconsulting.co.ke

DECEMBER 2011-JANUARY 2012

MANAGEMENT

MUA ANNOUNCES IT’S 1ST INTAKE IN JANUARY 2012 The Management University of Africa provides an environment that develops transformational leadership and excellent management practices focusing on industry practitioners and communities passionate for innovation, change and transformation.

VISION To be a premier university in the provision of innovative leadership and management solutions to industries and communities worldwide.

MISSION To provide quality education for transformational leadership and excellence in management through innovation and creativity. We are pleased to invite applications for the following degree programmes for classes commencing in January 2012.

Bachelor of Management and Leadership with the following options: • • • •

Purchasing and Supplies Management Human Resource Management Business Administration and Management Marketing Management

Bachelor of Arts Development Studies with the following options: • Project Management • Entrepreneurship Development • Economic Development • Environmental Management

UNDERGRADUATE ADMISSION REQUIREMENTS

CLASSES COMMENCING JANUARY 2012 44

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EXAMINATION

MINIMUM ADMISSION REQUIREMENTS

KCSE

Mean grade C+ with C plain in both Mathematics and

IGCSE GCE

English or Kiswahili. 5 Upper Level Passes (equivalent to C+) ‘O’ Level (grade 1-5) equivalent to C+ ‘A’ 2 principals +

12TH GRADE KACE

1 subsidiary pass. GPA of 2.5 2 Principals + 1 subsidiary pass & credit in Mathematics

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at KCE or equivalent Relevant qualifications recognised by the University Council

FEES: FEES: Tuition Tuition Fees: Fees: KES: 9,500 per unit KES: 9,500 per unit

PART PART TIME: TIME: Evening 5:30 pm – 8:30 pm Evening 5:30 pm – 8:30 pm Saturday 8:00 am – 5:30 pm and Saturday 8:00 am – 5:30 pm and Sunday 12:00 noon – 6:00 pm Sunday 12:00 noon – 6:00 pm

Statutory Statutory Fees: Fees: KES: 22,000 first semester KES: 22,000 first semester

Semester Semester Dates Dates

Application Application Fees: Fees: KES: KES: 2,000 ( USD 30) non-refundable 2,000 ( USD 30) non-refundable

NB: International students will pay 20% above the applicable fees NB: International students will pay 20% above the applicable fees Hostel Hostel and and transport transport fee fee not not included. included. However However arrangements arrangements have have been been made made with with appropriate appropriate service service providers. providers.

MODES MODESOF OFSTUDY: STUDY: FULL FULL TIME: TIME: Monday to Friday 8:00 am – 5:30 pm Monday to Friday 8:00 am – 5:30 pm

• January – April • January – April • May – August • May – August • September – December • September – December

How How toto Apply: Apply:

• Fill / Download application form available at www.mua.ac.ke • Fill / Download application form available at www.mua.ac.ke or or at at anyany KIM KIM branch branch country country wide wide • Submitt completed form to any KIM branch country wide or • Submitt completed form to any KIM branch country wide or MUA Adimissions Office or online MUA Adimissions Office or online

THE THE MANAGAMENT MANAGAMENT UNIVERSITY UNIVERSITY OFOF AFRICA AFRICA Admissions Admissions Office, Office, Popo Popo Road, Road, OffOff Mombasa Mombasa Road, Road, Belle Belle Vue, Vue, South South C, C, P. O. P. O. Box Box 29677 29677 – 00100, – 00100, Nairobi, Nairobi, Kenya Kenya DECEMBER 2011-JANUARY 2012 MANAGEMENT 45 Tel:Tel: (020)-2361160/1, (020)-2361160/1, Mobile: Mobile:+254 +254 722 722 224 224 193 193 / +254 / +254 0706035299 0706035299 • Email: • Email: admissions@mua.ac.ke admissions@mua.ac.ke Website: Website: www.mua.ac.ke www.mua.ac.ke

NEW KNOWLEDGE

An Indian view on opportunity, INNOVATION AND UNCERTAINTY

he environment for entrepreneurs in India changed much since C.P. Gurnani, CEO of Mahindra Satyam entered the workforce in the 1980s. Today, he says, there are myriad opportunities for those willing to deal with uncertainty and an unstructured work environment. Gurnani predicts that a burgeoning community of innovators will lead to many next-generation worldclass products being developed in India. In an interview with India Knowledge@ Wharton, Gurnani discussed his career trajectory and the challenges the management team faced after Mahindra purchased IT Services Company Satyam following a scandal that revealed Satyam had been falsifying its accounts and overstating revenues for years. Can you talk a bit about your career trajectory and how you have seen India’s business community evolve over the years? C.P. Gurnani: I graduated with a degree in chemical engineering in 1981. There were enough opportunities in India and I wanted to start my own business. When all my classmates were either busy preparing for the IIMs (Indian Institutes of Management) and the IAS (Indian Administrative Services), or were taking their GREs and GMATs so that they could go (to graduate school) overseas, I was the only one who said that I needed space for myself. I made business plans but realised that, for the scale at which I wanted to make the business work, there was not enough capital available. (At the time) you could only go to the local state finance corporations or to the public sector banks. Very quickly, one realized that the game that is required to be played is one of patience; it is about positioning and eventually taking advantage of the license regime. I (felt) that maybe I would

MANAGEMENT

C.P. Gurnani, CEO, Mahindra Satyam.

be a little wiser when I came back (after working elsewhere). So I joined J.K. Synthetics as a process engineer. But I found that I was not adding enough value to the whole polymerization process as a chemical engineer. I went back to my mentors in the engineering program and they said, “Well, you should get into process design.” I was a little too unconventional even for process design because process design of those days ... was to pick up a drawing and see how you could reproduce the same drawing in Indiawhat people call reverse engineering. I was also asking too many questions. One of the suppliers (of J.K. Synthetics) was a company called Lloyd Insulation. They had a graduate management training program and asked me if I would like to apply. Once I got into the business side, the first thing I did was project management. I was in a thermal power plant and I realized that project sites are a real test of your physical capabilities. Meanwhile, I got an admission offer

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from FMS (Faculty of Management Studies) in Delhi. I decided not to take it because I was having so much fun in my career. Since then, one event has led to another and all I can say is that I was willing to experiment, I was willing to make mistakes, I was willing to do things which were considered difficult by others, and I was willing to challenge conventional thinking. While more capital is available and more opportunities are presenting themselves in India, it is still hard for entrepreneurs to enter those areas where the large conglomerates are more entrenched. Not only are huge amounts of capital required, but there is also the question about connections with the government. What are your thoughts on this? Every generation has its own entrepreneurs, its own Dirubhai Ambani, J.R.D. Tata or Keshub Mahindra. I’ll just take this very recent example – (Indian travel website) makemytrip.com. This

NEW KNOWLEDGE company got capitalized in the New York Stock Exchange for about USD1 billion. Now, when did you last hear of Travelocity or Orbitz or Expedia? If my memory serves me right, these were active portals 10 years ago. But a new portal from India with similar features gets listed even today at a billion dollars. This tells you that the growth story in India (is very strong). The fact is that education, health care, travel, infrastructure, IT services and hotels all lead to the new generation. Whether you call them brick and mortar or you call them web services, to me as long as there is a customer and the customer is willing to buy a service, as long as you are willing to be an intermediary, as long as you are willing to offer a service, there is a market. Mahindra acquired Satyam in 2009, after it became known that the IT services firm – then India’s fourth largest – had been falsifying its accounts for years, overstating revenues and inflating profits. How have things changed since Mahindra acquired the firm? As a child you hear that “fortune favours the brave.” I would like to believe that Tech Mahindra couldn’t have chosen better timing to acquire Satyam. It was a leap of faith. For every risk that was there, we tried to look at how we were going to manage it and (what would be) the minimum (and) maximum impact…. It wasn’t like we were fools who rushed into it. It has been a test of management, a test of leadership, a test of the spirit and the grit of the company and the employees. It has been a test of trying to find that extra ounce of energy when things seem to be not going exactly right. And to be able to find that confidence, that the core of the end system is still very, very good. I think it is a storybook in itself. What lessons can you offer from a management perspective both for managers in India and abroad from your experience of the last few years? There are three chapters to it. One is the financial mismanagement of (Satyam) by the erstwhile shareholders. (Second,)

having discovered the fraud how the government reacted to corporate governance. And third is where the (Mahindra) leadership came in and acquired a company that was to some extent damaged and had challenges. If I look back, there are lessons at every level. Can you elaborate on the third one in particular? In any acquisition, the most important part is people. Whatever we may define and design, the fundamental fact is that … there are a lot of things that are subjective and more related to cultural aspects. We focus a lot on individuals without realizing that it is the whole fabric that works. I’ll give you an example. I had to get rid of 10,000 people because I had to right-size the company. I let them stay on temporarily at relatively lower salaries, but I allowed them technology access, job placement services and so on and so forth. I got great press. I got good appreciation from the ecosystem.

families and that they had their e-mail systems working, but to them we were the villains. So there are many, many lessons. What have been the drivers of your success? I think what differentiates people in any kind of a competition or race is ultimately their own passion, hunger and drive. And second, it is the support system. I have been blessed on the family part of it and I have also had a chance to work with leaders who have allowed me to make mistakes and to experiment and try out innovative ideas. It is very important how the ecosystem, the whole world around you, tries to become your collaborator. I think I was very, very lucky that I had that kind of an ecosystem to thrive on. And number two is that success requires a little more hard work and a little more passion, a little more hunger. I believe that it is one of the important differentiators.

But internally what was happening? Source: India Knowledge@Wharton Those 10,000 people were still part of the system and they were upset. Their question was: “Why me?” If I FUMIGATION AND PEST CONTROL At Chemserve we have specialized personnel were to do it again, with extensive knowledge and expertise on I’ll do it surgically in pest control and fumigation. We have quality equipment purposely to handle all kinds of one day. Not because pest namely; it is not good for • Mosquitoes • Mice & Rats the employee but • Bats • Wasps because it impacted • Ants • Bedbugs my other 30,000 to • Bees • Fleas • Termites • Snails/Slugs 40,000 employees. While we as a management LANDSCAPING AND GARDENING After the heavy rains we are more than team were being prepared for; • Lawn mowing the gardens humane, those • Weeding of the flowers beds 10,000 employees • Trimming the hedges • Pruning flowers were venting their • Sweeping and collecting dead leaves from feelings. We did the the parking and walkways six-month program For more details contact (of) outplacement, sales@chemserve.co.ke • jagina@chemserve.co.ke got psychologists to mmagu@chemserve.co.ke • cayieko@chemserve.co.ke Tel: 0725715447, 072056770, 0738800210 talk to them, made sure that they still CHEMSERVE CLEANING SERVICES LTD. remained on the Makindi Road off Riara Road / Ngong Road opposite Makini School Telephone: 3860440/2/4/01/06 • Telkom Wireless: 020-2626913 employee payroll Mobile: 0722-416576, 0734-416576 Email: sales@chemserve.co.ke • Website: www.chemserve.co.ke to be able to save face in front of their

CHEMSERVE CLEANING SERVICES LTD.

DECEMBER 2011-JANUARY 2012

MANAGEMENT

10 QUESTIONS

Quality drives AN ORGANISATION Dr. Alexander Douglas, a Reader in Service Quality Management and Editor of The TQM Journal based at the Liverpool Business School (UK) was the Chief Guest at the 2011 Company of the Year Awards. He told CAROLE KIMUTAI how organisations can embrace the service culture.

(b) A fear of failure – due to lack of confidence – however everyone gets papers rejected, the secret is perseverance. There is undoubtedly many talented researchers and potential authors in Kenya they just need to realize that, write and submit for publication; (c) An underestimation of what is going on in Africa generally and Kenya in particular. I was pleasantly surprised by what is going on in Kenya companies being driven by the Organisational Performance Index (OPI); (d) A need to think beyond case studies and look at what is happening in Kenya could impact on a global scale, in other words driving theory rather than adapting and adopting theory.

For professionals who would like to get published, how can they convert what they see into case studies?

Dr. Alexander Douglas, a Reader in Service Quality Management and Editor of The TQM Journal.

What is the most exciting thing about publishing the TQM Journal?

Being the first to read exciting new research and also giving new authors an opportunity to publish their work. I also get to travel the world giving seminars on writing for the publication, and get to meet lots of aspiring authors whom hopefully the TQM Journal can help publish their work.

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Africa has a lot of successful stories yet there are very few articles on total quality coming from Africa. Why is this?

From my recent visit to Kenya, there are a number of reasons: (a) A lack of confidence on the part of authors regarding the quality of their work;

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Managers and practitioners are in unique positions – they see ideas developed from the drawing board to implementation, from strategy to operation – they can give their insights into what works and why and what doesn’t and why. The TQM Journal not only publishes research articles, including case studies but also “Viewpoints”. This is an opportunity for practitioners to report what is going on in their organisations. Such reports may then attract researchers who may be able to gain access to such organisations and carry out more robust research to develop those initial insights.

10 QUESTIONS

What makes winning global organisations stand out?

I may be biased but obviously it is about quality. A winning organisation knows what their customers want and sets out to deliver that. Their products and services add value. Of course none of this can be achieved without people. People are at the heart of an organisation. The best organisations treat their people well, and they in turn treat their customers well.

How much time, resources, and effort do winning companies spend on total quality?

Winning companies build quality in to everything they do – it becomes second nature. Quality is a personal thing and you have to be passionate about it. However, it does not happen by accident and this requires the commitment of the top management within an organisation. Without that commitment (words and deeds) any quality improvement initiative is doomed to failure. It also requires investment in training and equipment. If people are not trained nor given the proper tools to do the job they will be unable to deliver quality work – once again it is the responsibility of management to ensure that their employees have the right training and the right tools. This costs time and money but you will notice I used the term “investment”. Training is an investment not a cost.

What advice would you give to a start up that wants to embrace quality as their philosophy?

Quality begins with senior management commitment – there is no such thing as acceptable quality levels. This needs to be demonstrated very early so that staff realize this. Also there is a need to focus on what is important to your customers – so find out – ask them.

How can leaders/ CEOs/ managers inculcate the quality culture in their organisations and employees? CEOs must lead by example – the “do as I say, Productivity and Quality Award - Toyota Kenya Ltd. not what I do” philosophy will not unfortunate staff member, who has work. Actions speak louder than words. nothing to do with the reason for failure, They must “walk the talk”. People are will incur the displeasure of the customer. “boss watchers”, if it is important to the To ensure this does not happen the boss it will become important to them. organisation needs to build strong They must also drive out fear from their quality chains that do not break. Every organisation and by that I mean fear person gives 100 percent total quality of failure. If they do not, then mistakes service. Nothing else is acceptable. This will be hidden from them and they will requires commitment and passion and think everything is alright and both they a reluctance to pass on anything less and their workforce will lose a great than quality goods and services to the opportunity to learn from mistakes. next person in the chain whether they

Total quality is about continuous improvement – what ways can companies check if they are on the right path?

Once again a model such as OPI is a very useful tool. The scoring mechanism used in the model can allow CEOs to track performance over time.

Many companies struggle with customer service; how can total quality work for them?

Customer service requires organisations to focus on their customers. This service is usually delivered by front-line staff who are in contact with customers either faceto-face or via the telephone. However, front line staff are supported by so called quality chains that run through organisations. Such chains are only as strong as their weakest link and any failure in the chain usually manifests itself at the customer interface and the

are internal or external customers. This is one of the key tenants of total quality management. What are the main trends in total quality in 2012? Obviously Lean and Six Sigma will continue to dominate management thinking, especially in a global recession, as will environmental issues – so we have Green Lean Six Sigma. However, organisations are also looking at Theory of Constraints. The worldwide excellence movement with models such as Malcolm Baldrige, The Deming Prize and EFQM as well as the very many national specific models such as OPI will continue to promote and guide organisational excellence efforts for the foreseeable future. The ability to inculcate quality into supply chains, especially global supply chains, will also enable winning companies to improve even more. You can contact Dr. Douglas on email: A.Douglas@ljmu.ac.uk.

DECEMBER 2011-JANUARY 2012

MANAGEMENT

THE ENTREPRENEUR

Sowing a GOOD HARVEST “Keep your mind focused on what you want, not what you want to avoid.” - Napoleon Hill By MURUGI NDWIGA

ould you have a life after employment? Martin Mwai, proprietor of Morrisons and Pace Co. Ltd left employment and fell in love with farming. “I can decide my income and further more, I am also changing people’s lives,” he quips. Farming presented enormous opportunities for Mwai and he knew he could earn a decent living. After quitting his job as a regional sales manager at an International Social Marketing non governmental organisation, he went into full time farming and all he required were his marketing skills that he had gained over time and which he planned to apply to the business. After doing feasibility study of the venture, in 2005 he put his money on a two and a half acre piece of land located land along the Eastern bypass in Ruiru. At the time, the place was considered remote and undeveloped. “You do not start a business with money; you start it with a plan,” he explains. His plan involved dividing the land into two. A big section he allocated to rearing chicks and the other he dedicated to strawberry farming. Mwai rears free range chicken to satiate a growing demand for organic poultry. “I could have reared hybrid (chicken) but I saw there was a huge market that had not been tapped,” he says adding that his plan is to expand and include value added products from the chicken. Monthly returns Mwai started out by selling about 500 day and month-old chicks to a few clients he had already established and raked in KSh 100,000 in the first month. From then, the business has gradually grown and is currently selling 4,000 to 6,000 chicks monthly which depending on their age, retails between KSh 150 and 500.

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Because of the road expansion, the Eastern bypass has been a blessing. Clients from Nairobi, Central and Eastern regions can easily access his products as individuals or groups. “Our plan is to go to that level where we are adding value to the kienyeji. We want to change Martin Mwai, proprietor, Morrisons and Pace Co. Ltd the mentality of Kenyans on how they view kienyeji chicken and also take market share in the poultry industry,” says Mwai. The strawberry farming business is gradually picking, and apart from selling the fruits in the market, his vision is to sell Every important decision inevitably or partner with dairy companies as part involves a trade-off. Knowing what of value addition for yoghurt. Though this you can’t pursue is as valuable as kind of business has its challenges; with articulating what you will. But how water being the main impediment, Mwai is optimistic that the business will grow. do you know which trade-offs are Despite having a large chunk of land that acceptable and which are losing can be used for other purposes, he says propositions? Here are three ways to he wants to concentrate only on chicken help make the distinction: rearing and growing strawberries so as 1. Get input on pros and cons. List to ensure quality and create a niche. advantages and disadvantages Apart from farming, Mwai also and ask others for their engages other farmers and customers perspective on which carries the in various parts of the country and heaviest weight. shares his skills. “I train my customers 2. Balance short term with long on income generating activities and term. Determine what you’d be change their mindset from thinking willing to give up in the long run small to thinking big. I empower them for some important short-term on marketing skills, value addition, how gain — and vice versa. to manage their finances, and how 3. Gauge support. While weighing to plan for their kind of business,” he alternatives, think about who will says, activities that also bring him some support a particular idea and who income. Mwai credits his success to will oppose it. Ask whose support repeat business and word-of-mouth you can live without, and whose marketing. He also advertises his products in newspapers and through backing and buy-in you absolutely social networking sites Facebook and need. Twitter.

Three tips for making trade-offs

Email: ndwigam@kim.ac.ke

DECEMBER 2011-JANUARY 2012

Source: Harvard Business Review

ENTREPRENEURâ&#x20AC;&#x2122;S DIARY

A decade and MORE OF DESIGN IN KENYA By DAVID NENE KALINGA Photo by: JULIAN NJOROGE

aving had the privilege of being in the design and branding industry for the last 15 years or so, I have had the chance to witness changes and advances in the various design disciplines and businesses. There is no doubt that advances in technology have had an impact in the evolution of the business in Kenya and around the world. The revolution in design Starting our design agency in 1995, I remember hiring out machine time from a bureau based in Transnational Plaza in town for small DTP jobs for our few clients at the time. The reason for this is that at the time, computer equipment was quite expensive. A brand new mac performa 5200 and a full colour printer the size of a large photocopier today would set you back about a million shillings. That was a colossal amount of money back then and not easy to come by, hence the few machines that existed did a booming business whilst charging a premium for the service. Today in comparison, a laptop will set you back KSh 40, 000 and a desktop printer about KSh 6,000, not to mention that they are readily available. Quite simply this means that the entry barriers have come way down and anyone with less than KSh 60, 000 and an Internet connection can be in business and your competitor in a heartbeat, obviously affecting the pricing model.

David Nene Kalinga, CEO, Capital Colours Creative Design Ltd.

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Exhibition design In the good old days if you had access to a good artist you were in business. The

ENTREPRENEUR’S DIARY artist was there to render your murals, storyboards, and paint your backdrops according to client’s brief. We also used a lot of block and ply boards. No doubt that the artist of the day ruled the land of exhibitions. Fast forward to today where we have computers, images available on the Internet, digital printers, laser cutters, mdf boards, routers and shell schemes which have simplified the process and at the same time allowed for greater flexibility and creativity in meeting the client brief and design. Colour separations and offset printing Those days colour separations were expensive and a set of a2 would set you back KSh 23, 000 including the proof. These were not the days to be making mistakes on the artwork. Today a set of a2 will range between KSh 6,000 to 12,000 depending on the company you use. If you decide to shorten the process we now have CTP (computer-to-plate) which cuts out the colour separations, gives you quick turn around and a higher print resolution. In the printing industry we have seen the move from 2 and 4 colour presses to 6 and 8 colour (cmyk,lc,lm,ly,lk) which greatly enhance image quality giving life like resolution.

Digital printing has also cut a niche for itself for small runs, business cards and a quicker turn around than offset printing. Pricing is cut-throat due to the low entry barriers hence rampant competition in this sector. Branding Wall branding was the most common when we started out. This involved splashing your client’s logo and message on the biggest walls you could find in the country to ensure that the message was loud and clear. Today the segment has fragmented into wall wraps, interior branding, full-colour shop signs, LED screens, window graphics, canopies or billboards. Due to these developments clients can now craft their campaigns with accuracy and efficacy based on the target market. Reaping from design About a decade ago, design was not considered a relatively lucrative career in Kenya, and very often clients would not distinguish design and fine art, hence did not see the value of paying too much for your services. Today design has found its rightful footing in the marketplace and more students are seeking a creative career-

the education facilities have also grown in tandem to cash in on this growing demand. Courses range from animation and 3d studies, print technology, interior design, fashion design, photography, industrial design, web design and many more. Not to mention that the job market is now global and so will be the movement of these qualified and creative youth. Needless to say things have changed for the better as more companies begin to appreciate the positive impact that good design and branding practices can have on their bottom line. Today more start-ups are likely to engage the services of a design professional to design their logos, print communication materials, packaging than those of yesteryear. I always say that good design is always a good investment that will harvest returns for the owner for many years to come. In fact I firmly believe that a company’s brands and trademarks may make up to 80 per cent of the market value of the company. Be wise and invest in winning branding. The author is the CEO of Capital Colours Creative Design Ltd. Email: nene@capitalcolours.co.ke

3 tips for a SUCCESSFUL BUSINESS PITCH Before you make a pitch, remember that investors are more likely to support an entrepreneur who is professional, well prepared, and knows his/her numbers. Here are three tips to be just that:

1. Prepare, prepare, prepare. Before you present, gather background information on prospective investors using Google and social media. If you know your audience you can engage them on a personal level.

2. Tell your business’s story. Start with a persistent problem and then show how your proposition will fix it. Make sure it’s something the investor can relate to.

3. Back up your pitch with data. Investors are primarily interested in facts. Be sure your numbers make sense. Be prepared for in-depth questions on turnover, sales figures, break-even points, and gross and net margins. Source: Harvard Business Review

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HANDS ON MANAGEMENT

Entrepreneurs: Shakers, TAKERS, MAKERS OR FAKERS?

By CAROLINE MUNYWOKI t can be safely argued that a large percentage of Kenya’s population is made up of entrepreneurs. Mostly because of the visible mushrooming kiosks, vibandas, stalls, car dealerships; not to mention the over bearing hawkers found all over the city and other parts of the country. Most Kenyans who have office jobs or careers, are, additionally, running a business or making small deals on the side; on and off official work hours. Could having a second job or part time job be called entrepreneurial? Is opening your own car dealership, a fish and chips kibanda-cum-restaurant in your back or front yard, or selling clothes from China, – like your neighbours are, or your friends are, because it looks and sounds lucrative, entrepreneurial? What then, is an entrepreneur? The dictionary defines an entrepreneur as one who organizes, manages, and assumes the risks of a business or enterprise. Investopedia explains; “Entrepreneurs play a key role in any economy. These are the people who have the skills and initiative necessary to take good new ideas to market and make the right decisions to make the idea profitable. The reward for the risks taken is the potential economic profits the entrepreneur could earn.” Does this mean that one is an entrepreneur when you assume financial risk, or when you take initiative within your skills to implement good new ideas to the market and make the right decisions to make them profitable? I lean more towards the latter.

are. These types have been purported by various authors and entrepreneurs; Rhonda Abrams suggests there are 9 “types”, Boris claims 7, whereas Richard Daft suggests 5. I am inclined to concur with Richard Daft’s 5 types which I have enumerated in my article.

The different entrepreneurs I am going to discuss 21 different “types” of entrepreneurs and if you are among one of the many Kenyans running your own business, or running an “on the side gig” during your normal office hours, you might figure out what type you

4. Caretaker: People with a helping personality find opportunities taking care of people, plants or property. So, was Mother Teresa an entrepreneur?

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Rhonda’s entrepreneur Rhonda Abrams states there are nine different types of entrepreneurs, each with their own style and interests. I would associate most of Rhonda’s “types” to personality traits as opposed to types of entrepreneurs. Similar to management styles fostered by specific managers based on their personality and leadership characteristics, as opposed to researched management styles. 1. Adviser: Entrepreneurs paid for giving advice; like lawyers, accountants, or financial advisers. 2. Administrator/Organiser: Persons who can plan weddings, oversee projects, or take care of accounts, databases, and order fulfilment. 3. Builders/Creators: Entrepreneurs driven to create something tangible where it did not exist before. E.g. Artists, bakers, carpenters, and designers

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HANDS ON MANAGEMENT 5. Communicator/Trainer: Those that can transmit information or communicate in different languages may find demand in sales, marketing, writing, training or a variety of information services. 6. Entertainer/Host: People, who thrive on being with people, may find an entrepreneurial opening in the hospitality industry or service industries such as hairdressing; may be entertainers, actors, musicians, or singers. Talent…? 7. Investor/Owner: Persons who have money to invest and put their capital to work by investing in stocks, real estate or businesses. 8. Seller: This covers salespeople and brokers in our purchases, from real estate to insurance to art. 9. Technologist/Engineer: Entrepreneurs who figure out computers, autos and engines, may want to explore entrepreneurial opportunities in software development, engineering or technology. From Rhonda’s “types”, you can deduce that ‘Entrepreneur’ is a pretty broad, and often abused, word. How would we define it and what do you need to do to call yourself one? Boris’ Entrepreneur 1. The Manager Entrepreneur: The type of person who becomes involved with start-ups once they have received a fair bit of funding and are just beyond the first highrisk stage. Calling themselves entrepreneurs because they are close to entrepreneurs and have worked at start-ups 2.

The Setup for Failure Entrepreneur: The kind of entrepreneur that has failure written all over everything they do. All they do is complain, and when they take on a project, it is too ambitious and destined to fail even before they start. This one never

“THE DICTIONARY DEFINES AN ENTREPRENEUR AS ONE WHO ORGANIZES, MANAGES, AND ASSUMES THE RISKS OF A BUSINESS OR ENTERPRISE.” gives up, of course, but you wish they would. 3.

The Lifestyle Entrepreneur: Some folks just want to live the life and act the part. They promote entrepreneurship, have lots of ideas about entrepreneurship but they don’t actually do anything, maybe consult a bit, and brag a lot on the side. The Cash-flow Entrepreneur: This entrepreneur doesn’t think

about anything except money. Which, can be a good thing, but some people overdo it. Spending days with a calculator counting money might feel productive, but is it entrepreneurial? 5.

The Wannabe Entrepreneur: These entrepreneurs, work at a company, have been working at companies their whole life, and will probably always work at a company. Within minutes of meeting, they are not afraid to announce they are

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HANDS ON MANAGEMENT

entrepreneurs - Deep inside, waiting to burst out, is their entrepreneurial spirit. All they need is a great idea, enough money to stay alive for one or two years, and the assurance that money will soon start to flow. The wannabe entrepreneur will most likely never progress beyond the wannabe stage. And that might be best for everybody. 6.

The Headlines Entrepreneur: Some entrepreneurs are in it strictly for the fame. They rush from one headline to another and are more focused on making it to the front page of the newspaper than actually doing business. This is not bad, if the companies are doing sustainably well. The Better World Entrepreneur: This entrepreneur isn’t into entrepreneurship for the money but

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to make the world a better place. How noble. From Boris’ “types”, it could be safe to state, that we all might have a little bit of that Headlines Entrepreneur inside of us - at least a great percentage of us and it would be prudent to take some evaluation time to prevent us from becoming the Cash-flow entrepreneur without embracing the Lifestyle Entrepreneur. Boris’ “types” remind me of personal values and moral ethic that humans might want to uphold while running business or venturing into entrepreneurship, “types” to help entrepreneurs balance their lives and stay away from extremes. Daft’s Entrepreneur Richard Daft (a business and management expert and author), talks about 5 entrepreneurial types in his book called the New Era of Management. He

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argues these 5 types are inherited by a certain percentage of entrepreneurs. He says Idealists make up the largest percentage 26, Optimizers – 21 per cent, Hard Workers – 20 per cent, Jugglers – 20 per cent and Sustainers – 15 per cent. 1. Idealist 26 per cent The idealist entrepreneur is the most common type of entrepreneur as per Daft’s percentage ranking. He/ She likes innovation and enjoys working on something new or creative or something personally meaningful. 2. Optimizers 21 per cent The optimizer entrepreneur comes in a close second and is content with the personal satisfaction of simply being a business owner. I think everyone would have some sort of satisfaction being a business owner but if that’s what mostly feels

HANDS ON MANAGEMENT important and what drives you to keep that business running, then I guess you fall here. 3.

Hard Workers 20 per cent Entrepreneurs under this category include persons who enjoy putting in long hours to build a larger more profitable business. They like the challenge it presents and of course reap the most rewards if the business turns out to be a multimillion enterprise. Hard work comes with all businesses but as we now see not everyone works hard for the business to grow as this group of entrepreneurs does. Some work hard, some work smart and some do not work at all.

44. Jugglers 20 per cent This entrepreneur likes the concept that the business gives them

a chance to handle everything themselves. They are usually people with lots of energy and exist on the pressure of meeting deadlines, paying bills and of course making payroll. Sustainers 15 per cent

“THE WANNABE ENTREPRENEUR WILL MOST LIKELY NEVER PROGRESS BEYOND THE WANNABE STAGE. AND THAT MIGHT BE BEST FOR EVERYBODY.”

The sustainers’ entrepreneur category consists of people who like the thought of balancing work

and a personal life. Most often they do not wish the business to grow too large where it will cut into their personal life too much. These guys just need enough to survive. No big hopes and dreams of a multinational corporation or interviews on “The Bench”, nor like Rhonda’s “headline entrepreneur”. That is the list of 21 “types” of Entrepreneurs, and I insist on Richard’s 5, being the accurate types I would go by. Many of us could be a combination of two or more of the above mentioned “types”. Richard’s types could be mixed especially when working on different ventures and the scope of work and objective of the specific business is altered – my question to you is, what kind of entrepreneur are you or what kind of entrepreneur would you aspire to be? Email: munywokic@gmail.com

steps to generating YOUR NEXT BREAKTHROUGH

B 1

usiness leaders can learn a lot from the way that designers solve problems and create new innovations. Successful designers find new ideas in seemingly mundane places. Here are four steps to finding something original in the ordinary:

Question. Don’t just ask the obvious questions. Look deeper and don’t be afraid to rethink basic fundamentals about your business and products.

2 3 4

Care. Caring doesn’t just mean giving great customer service. Get to know your customers as intimately as possible. Immerse yourself in the lives of the people

you are trying to serve. Connect. Find ways to bring together concepts, people, and products. Many great breakthroughs are “mash-ups” of existing ideas. Commit. Give form to your idea as quickly as possible: create a prototype and begin testing it right away. This is the only way to know if you’ve touched

on something truly promising. Source: Harvard Business Review

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HANDS ON MANAGEMENT

Manage your time,

PRIORITISE YOUR TASKS By BOB PATERSON

ast week, I had dinner with Pat, a lady who works for one of the telecommunications companies and our conversation quickly drifted from the ICC, the falling Kenyan Shilling to how much we accomplish. She said that she worked very long hours (over 60 per week) and still didn’t seem to accomplish very much. In addition she said that she often forgot things that she was meant to do. Sometimes these things were requested by her MD so it was not only embarrassing, but it might also reflect on her appraisal at the end of the year. She commented that when we had worked together at another company, she was always impressed by how much I was able to accomplish. I thanked her for the complement and then went on to tell her a couple of things. First, I made the comment that 60 hours work weeks are probably required if you are thinking of moving up the organisational ladder. Pat is a smart person but not the brilliant type that I wrote about a couple of months ago. So long hours are something she needs to understand is a trade-off for getting ahead in the company. Unfortunately, it is a fact of our working lives that if we are ambitious then we have to out smart or out work the competition. The balance of our meal was dedicated to explaining how I was able to accomplish the things I did. I don’t want to sound like I am more productive than everyone, but even in my retirement people compliment me on how much I can get done. The answers are both simple and difficult. It involves both focus and prioritization. I am always amazed at how some

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folks praise multi-tasking, the ability to do a number of jobs at the same time. While multi-tasking is important it is often a liability as well if your multi-tasking results in you not getting any of the jobs accomplished. While I do multi-task I much prefer, if possible, to complete one task at a time. I only do multiple tasks when there is some reason I can’t complete the task I am working on. And not surprisingly many people have lots of tasks on the go because they change their mind on the priority of the task as new work gets presented. I prefer to work and complete the task and let new work back up. I then can evaluate the new work in terms of priority and schedule it appropriately. Too often we confuse the important with the urgent. Yes we all have urgent tasks to do but how often are they that important. So we drop what we are doing, the important stuff,

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to focus on the urgent. In my experience the urgent usually isn’t that urgent and by stopping what we are doing to attend to this supposed ‘emergency’ we have lost our train of work and it takes time to get back to it. Had we put the urgent aside and completed the task we were doing, the important stuff in this case, then we would have been able to re-evaluate the rest of the work and decide on what needs to be done. Urgent work is only urgent if it is important. Often times that is not the case. The way I handle this is using the simple old To-Do list. I actually have two to-do lists. One is for work and one for home. I keep both lists on Outlook, but there are lots of programs around that you can use. Lucky for me I have Outlook both on my computer in the office and one at home. I also synchronize my ‘To Do list’ on my home computer with my phone so I always have that list with me.

HANDS ON MANAGEMENT

Every morning at home I review the activities I scheduled to do and download the list to my phone. At the office I print out my office ‘To Do’ list and put it on my desk in front of me. Each list has a number of items on it all with dates and priorities. Usually I don’t have any more than 3 or 4 things on each list for that day. One of the keys in a ‘To Do’ list is to make them time dependent. By that I mean put the time, at a minimum the day that you need to start working on it. If the task has an end point, like a meeting, then you can put that as part of the task as well. Since I

“WHEN SOMEONE COMES TO ME WITH A NEW TASK, OFTEN AN URGENT ONE, THEN I QUICKLY DETERMINE WHAT ITS PRIORITY IS TO ME.”

am at work I focus on the work ‘To Do’ list and really only tackle small items from the home ‘To Do’ list like making a phone call or two. In between the usual phone calls and meetings, I start the highest priority item on my list and try to get it accomplished before going on to the next one. I try not to start another task until that one is complete. If for some reason I can’t complete it, like needing information from someone else and they have not given it to me, I then reschedule the task for another time. Only then do I go on to the next task. I also rank my tasks- high, medium and low. So for any one day, I may have two high tasks and one or two medium or low tasks. I start with the first high priority task and then go on to the next one and finally to the medium and low tasks in that order. When someone comes to me with a new task, often an urgent one, then I quickly determine what its priority is to me. Yes it might be high priority to the person asking me but it might not be to me. Obviously the person’s position will also influence the priority of the task. If the MD asks me to do something it carries a lot more weight than if it is one of my colleagues. I am also not shy about negotiating the priority and timing of the task. This often is the best way to find out if an urgent task really is urgent. For an item that won’t take a long time, I usually offer to get it done by the end of the day or by first thing tomorrow morning. I try very hard to under promise and over deliver so even if I think it can be done by lunch hour, I will often ask to deliver it by the end of the day. That way, if I show up mid afternoon with it done then the person is pleased. But if I say it will be done by lunch and don’t get it done until 3:00 PM then the person is disappointed and I look like a failure. So the process is actually very simple. The tough part is implementing it. That is where people have difficulty. But if you do this for just one week, every day, I think you will quickly see the benefits it brings and you will be much more productive; maybe your boss will even notice. Email: paterson@africaonline.co.ke

DECEMBER 2011-JANUARY 2012

MANAGEMENT

HANDS ON MANAGEMENT

Islamic perspective of KENYAN CAPITAL MARKETS Financial services regulators and central banks cannot take on the responsibilities for Sharia’a compliance, but they should ensure proper procedures for ensuring compliance are in place, argues ALI MOHAMED.

peaking after the completion of a study on Development of Islamic finance in Kenya, Stella Kilonzo, Capital Market Authority (CMA) Chief Executive Officer observed that certain pre-requisites like a sound regulatory framework, a robust accounting framework, a facilitative tax environment, and an appropriate Sharia’a compliance process must be in place in order for there to be a fair, efficient and transparent Islamic capital market. I concur with the CMA that one of the key recommendations is the setting up of a National Sharia’a Advisory Board to provide guidance on product authenticity within the entire Islamic finance industry in Kenya and also ensure consistent interpretation of the Sharia’a law and rulings among products. Most Sharia’a scholars have differing interpretations in regards to similar products that can lead to a lack of harmonisation and standardisation in this industry. How it works Islamic financial market is the market where the financial instruments are traded in ways that do not conflict with the Sharia’a principles; it plays an important role in generating economic growth and complimenting and broadening the Islamic banking. Islamic financial market transactions are required to be carried out in ways that do not conflict with the Sharia’a so that the market is free from activities prohibited by Islam such as excess encompassing Riba (interest), Maysir (gambling) and Gharar (Risk and contractual uncertainty). Therefore, there is a need to review the present practices prevailing in the Kenyan capital markets to identify which of these practices needed to be reformed from an Islamic point of view and which of them may be acceptable. The objectives of the Islamic financial

MANAGEMENT

market are to ensure the equitable allocation of capital to sectors which would yield the best of returns to the owners of capital and to ensure that there exists sufficient investments opportunities to attract surplus funds in accordance with the owners’ preferences in terms of the extent of risk involvement, rate of return as well as the period of investment. Equity-based securities that don’t guarantee any return and don’t include forbidden businesses can constitute investments in line with Islamic financial law. Whereas debt-based securities that carry a fixed return until maturity, such as debentures, bonds, preferred stocks and commercial paper, are inconsistent with Islamic principles and it would therefore be necessary for new instruments to be designed to replace them. Preferred stocks can match within the Islamic framework by turning them into redeemable equities with an element of participation in both earnings and the proceeds of liquidation. Industry and financial screening Based on the most common Sharia’a Board established parameters, the businesses listed below are inconsistent with Sharia’a law. The majority of Sharia’a scholars and boards hold that these industries and their financial instruments are inconsistent with Sharia’a precepts and hence are not suitable for Islamic investment purposes. This is one area where CMA can develop knowing that Nairobi Stock Exchange has seven to 12 of the listed companies stocks as Sharia’a compliant. Although no universal consensus exists among contemporary Sharia’a scholars on the prohibition of tobacco companies and the defence industry, most Sharia’a boards have advised against investment in companies involved in activities like: alcohol, tobacco, pork-related products, conventional financial services (banking, insurance), weapons and defence, and

DECEMBER 2011-JANUARY 2012

entertainment (hotels, casinos/gambling, cinema, pornography, music, etc.) After removing companies with unacceptable primary business activities, the remaining stocks are evaluated according to several financial ratio filters. The filters are based on criteria set up by the Sharia’a Board to remove companies with unacceptable levels of debts or impure interest income. Furthermore, since the entire capital resources, both short-term and longterm, in an Islamic system are equitybased and not debt-based there is a need for a continuous pricing mechanism to the Islamic financial system to prevent it from major shocks and crashes. For this purpose, there are three key areas of the market that need to be constantly reviewed that are speculation,

“ISLAMIC FINANCIAL MARKET TRANSACTIONS ARE REQUIRED TO BE CARRIED OUT IN WAYS THAT DO NOT CONFLICT WITH THE SHARIA’A SO THAT THE MARKET IS FREE FROM ACTIVITIES PROHIBITED BY ISLAM SUCH AS EXCESS ENCOMPASSING RIBA (INTEREST), MAYSIR (GAMBLING) AND GHARAR (RISK AND CONTRACTUAL UNCERTAINTY).”

HANDS ON MANAGEMENT

information disclosure standards and the regulations guiding operations and trading practices. The importance of having scholars or National Sharia’a Advisory Board members with proper knowledge and understanding is vital for the development of the Islamic capital markets in Kenya. Speculation can cause wild swings in the market through misallocation of resources resulting in losses and gains entirely unrelated to real economic effects. Such results are like the results of gambling, involving transfer of resources among the participants but adding nothing to the initial stock of resources. The adequate flow of public information is what protects investors by ensuring that significant changes in shareholding are not the result of some people having inside information not available to the public. And the CMA regulations guiding operations and trading practices require restrictions to ensure an adequate flow of information about the business whose securities are being traded and to control the trading practices in the market. These define the role of brokers and dealers, set margin limits and control fees and commissions. An Islamic securities market makes liquid asset holding more profitable for Islamic banks and reduces reliance on interbank deposits. As Islamic banks cannot hold short-term interest yielding assets such as treasury bills because of the prohibition of interest under the Sharia’a Islamic law, they have always had a problem in profitably managing their liquidity. In this case CMA will need to develop the Islamic securities markets with backing of the Central Bank of Kenya and other stakeholders.

Regulating the markets or regulating the products? In most countries with Muslim minority populations like Kenya and an absence of dedicated Islamic finance regulators have nevertheless been expected to approve and monitor Islamic financial products, including those offered by Islamic managed funds. These may be offered to local Muslims, or in the case of the UK, to Muslim investors who are non-resident. Islamic banks have been re-depositing funds in the UK since the early 1980s, and increasingly the banks and their clients are being offered structured products designed to comply with their Sharia’a requirements. Customer entitlements should include clear information on the nature of the Islamic products. They should also have the assurance that such products have regulatory approval, although as already indicated this relates to their financial acceptability, not their Sharia’a compliance, that is a matter for the Sharia’a advisor or committee. The Islamic products offered are likely to involve some degree of risk taking for the purchasers, although the latter should have a higher position in the pecking order than the shareholders in the institution offering the products in the event of institutional insolvency. As the return on Islamic investment accounts relate to institutional profitability and not general monetary developments, customers should be informed how their returns are calculated. Although at present there are no Islamic certificates of deposit issued or traded, such product innovation is likely given the increasing interest in Sukuk securities. Again any purchaser of Islamic certificates of deposits should be provided with clear

written information on how the returns are calculated. Purchasers of Islamic securities should be provided with the same information as shareholders to help them judge the credibility of the institution they are dealing with. The corporate reporting should include the audited accounts showing income and expenditures as well as assets and liabilities. Information should also be disclosed on the number of securities issued and a statement given of their valuation, probably not less than every six months. Timely information is important, and the regulator should be informed if any delay is likely in the issuing of annual reports, including the reasons for any delay. When vetting for the National Sharia’a Advisory Board, the Institutions must ensure that Sharia’a boards have a high level of autonomy and independence, protecting them from commercial pressures. Sharia’a boards must be well resourced to ensure full compliance with both legal and religious requirements. Do not expect every Sharia’a board member to be an expert on every aspect of Islamic finance. While Sharia’a boards require a range of members with a diverse range of religious and financial knowledge, institutions should not expect individual board members to be experts in every aspect of their wide-ranging brief. However, board members with specialized knowledge of particular aspects can work very effectively on sub-boards related to particular initiatives or projects. Do not overlook the need to ensure that Sharia’a board members are well informed about developments and trends in the global financial marketplace. Email: md@mashconsultinggroup.com

DECEMBER 2011-JANUARY 2012

MANAGEMENT

SMART LEADERSHIP

Linking leadership TO LEGACY

By JOSEPH N. NYANCHAMA

MANAGEMENT

DECEMBER 2011-JANUARY 2012

SMART LEADERSHIP

eo C. Rosten said “I cannot believe the purpose of life is to be only happy” I think the purpose of life is also to be useful, to be responsible, to be compassionate, to have made some difference that you have lived at all”. When Leo Rosten wrote this statement, it is as if he had seen the life of Professor Wangari Maathai, a lady who governed her life and thoughts as if the whole World were to see the one and read the other. I am saying visionary leaders link what they do with who they will serve and constantly focus on leaving a rich footprint of service and contribution behind when they depart. Such leaders link leadership to legacy- in doing so they fulfil their calling. They fulfil their duty to liberate the fullness of their personal gifts for a worthy cause. All the great leaders who have gone before us have aspired to reach this pinnacle. Just before his death, George Bernard Shaw was asked what he would do if he could live his life again. Though he had already achieved more in his lifetime, than most of us could only dream of, he replied humbly, “I would want to be the person I could have been but was not.” Similarly, Prof. Maathai when interviewed by the Drum Magazine in July and asked what things she would do differently, she said, “The one thing that I would do differently now is taking time off to raise my children. Perhaps I was taking too much into my hands when I was very young. I really think if I had to do things over, I would take care of my children first of all then try to go build a career.’’ Robert Kennedy in a speech to students said, “Give me a place to stand,

said Archimedes, and I will move the world and so can we all. Few will have the greatness to bend history, but each of us can work to change a small portion of the events, and in the total of all these acts will be written the history of this generation.” Prof. Wangari Maathai found a place to stand and move the World. She worked to change the events and in total to all her acts will be written the history of this generation. Her death recently extinguished a hopeful light in Kenya. But the torch remains lit. It is in our hands. I wish to remind all leaders that we live in two worlds. One is the world of distraction and busyness without any legacy in sight. That World is like a cloud, it is going to perish. The other world we live in is where Prof. Maathai is right now, the World of the eternal. It is the reality of that latter world that has made me to give George Bernard Shaw’s eloquent passion for life an eternal perspective. “I rejoice in life for its own sake,” Shaw said in an address in 1907. “Life is no brief candle to me. It is a sort of splendid torch which I have got hold of for the moment, and I want to make it burn as brightly as possible before handing it on to the future generation.” Prof. Maathai was a heroine; she was a splendid torch, vital, charismatic, magnetic, attractive, and full of the attributes that all of us wish we had in greater abundance. Prof. Maathai used her gifts fully each day. She didn’t shortchange herself, even though her days among the Kenyan people were so few. Prof. Maathai’s death while tragic was an inspiration to all in the Republic of Kenya and the World at large to burn brightly whiles it is day.

The greatest irony of leadership is that the more you give, the more you get. And when all is said and done, the highest and most enduring gift that you will ever be able to give is the gift of what you leave behind. Your legacy to the generations that follow will be how much value you have added to your organisation, community, country or world and how many lives you have improved. As the great humanitarian Albert Schweitzer observed; “There is no higher religion than human service. To work for the common good is the greatest creed.” A father told his son while he lay in his death bed; “Be ashamed to die until you have scored victory for Mankind”. Prof. Maathai has scored victory for mankind and has proved to the world that the purpose of life is a life of purpose. Jean Giraudoux said “Only the mediocre die always at their best- real leaders are always improving and raising their bar on how superbly they can perform and how quickly they can move.” So continue giving service to humanity and also remember that what makes greatness is beginning something that does not end with you. In other words by rallying around a worthy cause and constantly asking how we can serve, the rewards will flow in degrees you cannot imagine. As they say in the east “A little fragrance always clings to the hand that gives you roses.’’ Remember also that ‘’leaders should lead as far as they can and vanish, wrote H.G. Wells. Their ashes should not choke the fire they have lit.’’ Email: joseph.nyanchama@kpc.co.ke

3 types of failures to avoid I

nnovation experts have long argued that companies should be more tolerant of failure. But not all failure is created equally. Here are three types of failures that rarely contribute to learning and should be avoided whenever possible: • Knowingly doing the wrong thing. When a project falls apart because

someone hid information or misled others, any learning is moot. Failure is only acceptable when the project was done with good intentions.

• Failing to gather the right data. Often failure can be avoided by doing some simple research: asking target customers for input or testing an idea before launching it.

• Prioritizing research over experience.

Some things are unknowable without real-life experiments. Don’t waste resources on researching a theory when you can create a prototype or conduct an experiment that will give you a more realistic answer.

Source: Harvard Business Review

DECEMBER 2011-JANUARY 2012

MANAGEMENT

TOP READ

Your Leadership & MANAGEMENT GUIDE Book title:

Essential Management and Leadership Tool kit Author: Prof. Michael Dynamite Munkumba Reviewed by: Sammi Nderitu

everyone and explains why you too must make that shift.

hen you change your thinking, you change your beliefs, when you change your beliefs, you change your expectations; when you change your expectations, you change your attitude; when you change your attitude, you change your behaviour; when you change your behaviour, you change your performance; when you change your performance, you change your life,” writes Prof. Michael Dynamite Munkumba quoting the book ‘Think like a winner’ authored by Dr. Walter Doyle. While noting that this is a powerful statement, Prof. Munkumba points out that change does indeed start in the mind. “Continue thinking in the same way and you will continue doing the same things and as sure as night follows day, your performance and life will remain on a predictable course. Start working on your mind.” This book has been divided in two major parts with the first entirely focusing on self-management where he discusses personal effectiveness, management and leadership things that will work or not work for you, your potential, selfawareness, goal setting and changing your mindset. The second part of the 458 pages book addresses corporate/organisational management with the topics covered intended to ensure “allocative efficiency which concerns the use of the resources at the organisation’s disposal.” Here he notes that a paradigm shift equalizes

He writes about organisational structures while relating them with different animals like the dinosaur, and rabbit and indicating their characteristics. Noting that learning is an essential thing in management and leadership, he emphasises that learning is a continuous process that involves respect for others, the acceptance of risk taking and the desire to be the best that one can be while education is the removal of ignorance. Other insightful topics that the book has covered and vividly discussed includes mentoring as an important aspect of effective management

which he regrets has been neglected, communication and it’s barriers and says that life is “very much about communication” and thus as leaders or followers, we need to do it effectively. He adds that “restructuring organisations need periodic shifting of gears to remain vibrant and sustainable” hence changes are taken to maintain performance or maintain relevance or push present success into the future. He warns that customers paradigm has shifted and gone are the locked in and trapped customers who are desperately pleading for services. Why it is a must read Prof. Munkumba, an accomplished trainer, consultant and lecturer in management and finance with Eastern and Southern African Management Institute (ESAMI) where he is deputy Director in charge of Post Graduate studies, has communicated to all readers, managers, leaders and students who are aspiring to take up more responsibilities. He discusses up to date crucial management concepts and practices required both at the personal and organisational level. The book gives a valuable insight on how you can manage or be a leader of yourself and/or of an organisation. He says; “Complacency is death and effective management is good stewardship’ noting that “nothing orderly happens by accident, not even creation. Progress must be planned for, and excellent progress must be meticulously planned.” Email: snderitu@kim.ac.ke

DECEMBER 2011-JANUARY 2012

MANAGEMENT

EXECUTIVE STYLE

2012 MUST-HAVES By MUMBI NJOROGE

BlackBerry Bold 9900 Has a sharp touch-screen display and supports 4G Network.

TABLETS Apple iPad 2 This is a follow-up of iPad 1. The major difference is that iPad 2 has 2x clock speed,9x GPU performance which lacks in original ipad and front and rear built-in cameras.

Samsung Galaxy S II Comes with a dualcore 1.5GHz processor with superb camera performance.

Sony Tablet S It is one of the latest in the android tablet market. Compared to the other flat tabs, this one comes in a smooth curved frame.

Samsung Galaxy Tab This tab is thin, lighter and half the size of iPad 2. It comes with two SIM card slots.

MANAGEMENT

SMART PHONES

Nokia N8 The N8 delivers excellent camera and video quality. The smartphone has solid hardware, offers 3G supports for both T-Mobile and AT&T and has a QWERTY keyboard.

DECEMBER 2011-JANUARY 2012

iPhone 4s The latest from Apple and comes with an “intelligent assistant” that enables users to use their voice to operate the phone and its applications.

EXECUTIVE STYLE

TRAVEL WITH EASE

HOME WORKOUTS Fit ball Tones muscles and adds interest to your exercise routine.

E-Reader Makes reading fun and easy. It allows you to download your favourite books, magazines and newspapers. Lending books with an e-reader have limitations.

Universal plug Helps you charge your iPhone, iPod, notebook, camera and other mobile devices in almost all parts of the world.

Exercise bands Portable and helps you to perform your work out anywhere. They provide adjustable resistance for both stretch and strength exercises.

GROOMING Toilet bag for her Helps you put all your make-up in one place for your access on the road or in the office.

Grooming kit for him Put your razor, nail clippers, trimming scissors, shaving and after shaves, colognes, and shirt cuffs in a neat bag; a perfect way to feel organised.

Dumbbells Great for stabilizing the muscles,developing a more balanced posture and physique.

Email: mnjoroge@kim.ac.ke

DECEMBER 2011-JANUARY 2012

MANAGEMENT

TECH Q&A

Better your

2012 TECHNOLOGY

It’s almost predictable that the year 2012 will be awash with new and improved technology. MUMBI NJOROGE spoke to Douglas Kirimi, MD Better Globe ICT on some techbits you should know, that may boost your business image Photo by JULIAN NJOROGE MANAGEMENT: What are some of the trends in website development?

the help of compression-based mobile phone browsers like Opera mini.

Douglas: Website development has changed from a difficult, heavy coding approach to a much simpler, less coding function-based approach. A developer does not have to recreate common functionalities like a shopping cart, online forum etc, when most of the functionalities are already made available, whether in the open source market or proprietary software market– leaving the major task to be customization and integration of the applications to clientspecific scenarios. This leads to two major advantages; less development time and reduced overall cost of a project.

What softwares in the market are making work much easier, effective and efficient especially at the work place? Cloud computing is revolutionizing how people interact with different applications. One simply subscribes and pays for only the application they need hosted in a cloud server that you did not purchase, say Quick books for accountants, and still have the same experience as having the application installed on your local PC or server. There also has to be good internal infrastructure i.e. Broadband internet, good routers, networks and firewalls.

What goes into making a mobi-site, putting in mind that many people access internet via their mobile phones? A mobi-site is essentially a mobile version of a web-based website. One, is to manually recreate a ‘toned down’ version of your website with less big graphics and different font sizes, then host your website on a .mobi domain which has guidelines on how to optimize your website for viewing on a mobile gadget. Second, is to develop your website using more recent platforms like the Joomla CMS which has an inbuilt compression technology that would automatically optimize your website for the most common mobile phone views e.g. the iPhone and Android-based phones. This auto compression, which comes inbuilt in smart phones, is enabled using specific hosting servers and with

What should people look for in a web developer? First, a credible design and development portfolio and proof of standards based approach to development. The last thing that one should consider is the cost of the development work, rather one should be interested in what the developer can do for you, in your specific needs and whether the developer has worked on a similar website before. The developer should clearly state in his proposal, a step by step development approach in the technical proposal from design requirements (logo, corporate colours and photos) to functional requirements (website systems e.g. online data collection forms to online marketing needs). Then come up with a financial proposal based on the technical proposal. The final item to be provided

MANAGEMENT

DECEMBER 2011-JANUARY 2012

Douglas Kirimi, MD Better Globe ICT

is a schedule for implementing the entire project preferably with time-bound phases and deliverables. What are the software trends in 2012 that the market should expect? There will be more adoption of social media as a viable marketing and communication tool by more corporates and there will also be more use of mobile Apps (Applications) custom made for the Kenyan market e.g. News Apps from media stations, music and video Apps from the entertainment industry, possibly stock market information Apps etc. The limit is only our imagination! Email: mnjoroge@kim.ac.ke

SMART SOLUTIONS

Get personal, WITH THE IPHONE 4S By MACHARIA KAGICHA

he usual hype that accompanies pre-launch of Apple products was not absent as the new Apple CEO Tim Cook announced the new iPhone. Although Apple fans were expecting the release of iPhone 5, Apple presented iPhone 4S on October 4 and within three days after the official release, Apple announced that four million of the new iPhones had been sold. iPhone 4S is an upgrade of the iPhone 4, having retained most features, including look and feel, height, width and depth. But the High Definition (HD) video recording, a super high-resolution screen, higher processing capacity and the

beautifully slim design did not disappoint. The most notable and exciting addition to the iPhone 4S is the voice assistant application known as Siri. The application turns voice into commands. You can use your voice to send messages, schedule meetings, set alarms and reminders, make phone calls and bring up information that you need. This can be anything from weather in different cities, top restaurants in your area, or even command Siri to refer you as ‘Master’. With in-built artificial intelligence capacity, Siri turns the iPhone 4S into a personal assistant. Although the technology has been in existent for some time, the speech recognition capacity of Siri is above similar applications, working reasonably well even in noisy environments. What would be interesting is to see how Siri interprets different Kenyan accents. One of the major improvements is the 8 megapixel camera on the iPhone 4S. It is capable of shooting 8 MP stills and recording 1080p videos at thirty frames per second, which is a 30 percent increase in clarity and 26 percent better for color accuracy, compared to its 5 megapixels predecessor. The video stabilization feature in the iPhone 4S means you can shoot quality

videos. However, previous camera features have been retained including, autofocus, tap to focus, front camera with VGA resolution and backside illumination sensor. iPhone 4S has a higher processing capacity with its dual-core A5 chip, compared to the previous A4 chip. The A5 chip has doubled the efficiency of the iPhone, delivering seven times faster graphics, improving gamer experience and apps interaction. The battery life has been extended by an hour from it predecessor to 8 hours on 3G and up to 200 hours of standby time. As the battle for smart phones heats up, Samsung and Apple seem to be the two main contenders. By extension, the battle has spilled over to the two leading mobile operating systems – Android and IOS. However, iPhone 4S comes loaded with the new IOS 5, which pundits say is the world’s most advanced mobile operating system. The new IOS has 200 more applications including iMessage, reminders, PC free, camera enhancements, Twitter integration, notification center, Safari browser, better photo editing options and Siri. However, there is little to differentiate between Samsung’s Galaxy S II and iPhone 4S. Both share similar features aesthetically, but the iPhone is a few grams heavier though its 3.5” screen is smaller compared to the Galaxy’s 4.3” display screen. The iPhone screen is the sharper of the two, making texts and images very crisp. But the Galaxy has a brighter display due to the Super AMOLED technology used. In addition, Galaxy II is build to run on 4G networks, making it faster, with speeds of up to 42 Mbps down speed. Both, however, have good wireless capabilities including printing, sending and sharing data. As for durability, you would rather drop the Samsung than the iPhone, which is largely made of glass compared to plastic for the Galaxy. A new iPhone 4S costs an average of KSh80,000 – 90,000 depending on whether it is 16GB, 32GB or 64GB, but is yet to hit the shelves in Kenya. Macharia Kagicha is an IT writer. Email: mkagicha@gmail.com

DECEMBER 2011-JANUARY 2012

MANAGEMENT

BUSINESS ETIQUETTE

Watch your image at THE OFFICE CHRISTMAS PARTY BY DEREK BBANGA

hristmas will soon be upon us and into this ‘season of goodwill’ looms ‘The Christmas Party.’ Fun as office Christmas parties are, they can cause a problem as they bring us into contact with people at work in a way that doesn’t happen every day in the office so there are certain codes of behaviour that should be observed to avoid any embarrassing moments afterwards! Entertaining is expensive, so the event should provide value for money as well as a good time for all concerned. Please do show up. So many times I hear people say they will not attend the Christmas party for one reason or the other. This is an opportunity for you to be seen and to make a positive contribution in celebrating the achievements of the year. Try to keep time rather than showing up two hours late. Also there are no prizes for being the last man (or woman) standing, so avoid being the last person to leave the party because you needed to make sure all the free drinks were finished! Know when to call it quits and retire for the night or carry on the party elsewhere. It goes without saying that there should be enough food and drink but alcohol should supplement the party, complement your party, but never dominate your party. So whatever you do don’t encourage people to get drunk and do keep an eye out for those who might be taking on board one too. If you feel you really want to hit the bottle, leave the party early and go to your local. But what if the drink has been flowing, the music slows down and as the lights dim, you find yourself dancing with your boss. How should you behave if he (or she) starts to get a bit amorous? You might think ‘So what – after all it is Christmas!’ I’m afraid that unprofessional clinches with the boss or any other members of staff are best avoided! Things can sometimes go further than they should, which means at the least an

MANAGEMENT

embarrassing time on Monday morning and possibly unwelcome gossip for weeks to come. It pays to be polite at all times so good manners say that we should gently push them away and suggest that you might like another drink or a bit of a rest and re-join the main group as soon as possible. This is definitely the time to dress up and put on the glitz if you feel like it, but again, it is best not to go over the top. Good etiquette says nothing too high, nothing too low for ladies – in other words it is best not to flash the flesh, but that advice goes for both men and women. At a corporate Christmas party, people are there to enjoy themselves but also you are still on show so make sure how you are seen, heard and behave enhances your personal brand. It is up to each of us to decide what sort of an impression we want to make and what sort of image we wish to project, but it is as well to remember that this is still a ‘company’ event. One of the things to avoid is to talk only to the people you know well. The whole point of any party is to get to know new people, or speak with people you don’t normally do, so make sure you circulate! Don’t get stuck with someone who tries to monopolise you – when you

DECEMBER 2011-JANUARY 2012

want to move on simply introduce them to someone else or end a conversation by saying something like ‘It has been so nice to talk but I must see so-&-so before he leaves. I will see you later.’ In fact use the party to meet and get to know senior or key members of the organisation. Certainly don’t besiege the boss but make it a point to say hello no matter how brief. Have a variety of interesting topics to talk about when networking (other than football and politics) but don’t talk shop the whole evening. At the same time, avoid gossiping, whinging, spreading rumours or confessing your sins.

HERE IS A QUICK LIST OF THE KEY DO’S & DON’TS: 1. Do remember that a Christmas Party is a corporate event 2. Don’t drink too much! 3. Don’t get physical with your boss or co-workers 4. Do dress up! 5. Do make sure you circulate and talk to different people 6. Do enjoy yourself! Email: Derek.bbanga@publicimageafrica.com

Entertainment with SENSE By OLIVE BURROWS

MOVIE REVIEW

Title: Horrible Bosses Genre: Comedy Starring: Jason Bateman, Jason Sudeikis and Charlie Day ‘Tis the season to be jolly and that is why I’m recommending Horrible Bosses for a jolly good laugh this holiday season.

MUSIC

Three friends: Nick, Dale and Kurt have horrible bosses and given the tough economic times, quitting is not an option so they opt to take out their bosses rather than remain miserable for the rest of their working lives. And by ‘take out’ I mean kill. Given they have no expertise in this field they obtain the services of a murder consultant played by Jamie Foxx. The trio on the advice of their murder consultant decide to make the deaths look like accidents but discover they don’t have the gall to commit the murders. Problem is, Nick’s boss kills Kurt’s, the three musketeers are the prime suspects and the only experience the ‘murder consultant’ has is piracy. Watching the three novices get in over their heads will have you going, “Ho ho ho! Merry Christmas!”

WEBSITE REVIEW

Album Title: The Gift Artist: Susan Boyle Susan Boyle caused quite the uproar when she appeared on Britain’s got talent; a plain Jane with the most extraordinary voice. The Gift, a Christmas album, is Susan Boyle’s second. A majority of the 10 songs are your Christmas classics with a folk feel which is not surprising given she’s lived half her life in Scotland. Only one of the songs on the album gave me a glimpse of her star power and that is Do you hear what I hear? which she sings with Amber Stassi.

Website: www.rupu.co.ke The concept of a bargain being a click away is not entirely original but can come in handy especially over Christmas where money and time are tight given all the activity that surrounds the holiday. This is how it works: The site puts up a product or service that’s on offer indicating the original cost and the discounted price. The item stays on offer for a predetermined amount of time indicated and a minimum number

BOOK REVIEW Title: A lion in the bedroom Author: Pat Cavendish O’Neill This memoir will make the perfect companion as you lie on a lounger by the pool looking out at the ocean. The book’s full title is ‘The fabulous high life of the heiress, who couldn’t say no to… a lion in the bedroom,’ thus the title tells us a lot about the book. First, the book is about as lengthy as the title and the author discusses animals, opulence and the bedroom. Pat tells her story from childhood around the First World War through to the second and into the post war era. As she tells her story, she tells that of her mother Enid and her two brothers Rory and Caryll. Kenya and Egypt are mentioned a good number of times in this book and if you’re interested in discovering what the white settler’s colonial experience was like, get yourself a copy. of coupons are to be bought within that space of time for the offer to be valid. To buy a coupon you can use your visa credit card or the mobile money transfer services available on the various networks. Should the minimum purchase threshold be met within the allotted time you receive a coupon sent via email or your phone, depending on your preference, which you can redeem subject to the merchant’s terms and conditions specified on the site. The T&Cs generally specify where and when the coupon can be redeemed and an expiry date for the offer. If not enough purchases are made within the allotted time you get your money back because the discounts are based on the unit cost principle. A lot of variables if you ask me for a purchase you can’t be certain of and have to count on others for. But if you’ve got enough friends who’ve got buying power and share a desire for the same product or service you could tilt the scales favourably.

Email: oliveburrows@gmail.com • Blog: oliveburrows.wordpress.com DECEMBER 2011-JANUARY 2012

MANAGEMENT

HEALTH

Mind your EMPLOYEES’ HEALTH For every employer, his human capital should be the most priced asset. PATRICIA MUIGAI gives pointers on how every employer should ensure an employee’s health is not in jeopardy while creating a conducive working environment.

healthy workforce is an essential component for any business to run efficiently. Sickness is a major cause of absenteeism, high staff turnover not to mention increased medical and health insurance claims. In addition, illness could reduce productivity, and in turn affect the bottom line. One challenge of modern life is that more and more people are being diagnosed with diseases such as cancer, diabetes, and hypertension and so on, which means that employers will increasingly find it necessary to find ways to address this challenge. Good news however, is that employees who fall ill can still handle their duties well with support and proper management of the disease. “The key is having adequate medical treatment and accurate information about the diseases. I know many patients who are quite productive in their professions and lead normal lives despite their illness,” says Dr Jacqueline Kitulu, a General Practitioner. “Today, many people are less physically active and consume unhealthy food. The result is that obesity, the main risk factor for the so-called lifestyle diseases is now an epidemic. If you consider the value of your employees, the cost of care should not be a problem. As long as the patient is able to work, and the illness is managed well, there is no need to discriminate or terminate employment on medical grounds,” she adds. The workplace environment has also become more competitive with increased demands on employees. This has led to elevated stress levels in the workplace.

MANAGEMENT

Stress is known to manifest itself as physical illnesses, and it triggers or worsens those that already exist. It is one of the triggers of hypertension. High blood pressure (hypertension) As the heart pumps blood to transport it to the rest of the body, the blood exerts force on the walls of arteries. This force is what is measured as blood pressure. A person is diagnosed with hypertension when the blood pressure reading is 140/90 and above most of the time. Mostly, hypertension has no symptoms and that is why regular medical checkups are recommended. To prevent or control high blood pressure, one is advised to adopt a healthy diet rich in fibre, potassium and enough water, exercise regularly, avoid smoking, limit table salt and alcohol intake, maintain a healthy body weight, and learn to manage stress. Dr Kitulu advocates preventative health care, which is more effective and less costly in the long-term. “Create a stress free workplace environment and one that promotes work-life balance. Furthermore, you could organize medical screenings for your staff and if possible, pay for gym membership or provide physical fitness facilities. Organize with your company’s healthcare provider to give educational talks on the existing diseases and on healthy living.” Diabetes This chronic illness is characterized by high sugar levels in the blood. When we eat, the food is digested in the stomach and from there, the liver converts the carbohydrates into a form of sugar (glucose), which supplies the body with

DECEMBER 2011-JANUARY 2012

the energy it needs. The hormone insulin regulates glucose levels in blood by enabling it to move from the bloodstream into the body cells. When the body fails to produce enough insulin, or if it is resistant to insulin, or both, the result is high glucose level in the blood, and hence, a person is considered diabetic. People should be tested for diabetes if they experience persistent, excessive thirst and hunger, fatigue, frequent urination, blurred vision and sudden, unexplained weight loss. Risk factors are age (45 years and above) and obesity. Diabetes is not curable. However, it is treated with medication, weight control, diet and exercise. Sometimes, taking medication to lower the blood sugar, skipping a meal, too much exercise or drinking excess alcohol may cause low blood sugar (hypoglycaemia), whose common symptoms are dizziness, poor concentration, confusion, sweating and shakiness. A person with these symptoms should be given about 15 grams of a fast acting carbohydrate such as table sugar or glucose dissolved in water, chocolate or a sweet, juice or soft drink. “Employers could offer their support by allowing the patient to attend clinic, have regular breaks to have a snack, check the blood sugar or take medication in a private place. If the company provides lunch, it should consider such employees when planning the meals,” says Dr Kitulu. Epilepsy Also known as seizure disorder, epilepsy is a condition fraught with many myths and stigma. It affects the nervous

HEALTH

system and is characterized by seizures (fits). The exact cause is unknown, but factors such as head injury, tumour or infection in the brain or a stroke could trigger epilepsy. It could also be hereditary. Having a seizure does not necessarily mean a person has epilepsy; normally it is diagnosed after one has had more than one seizure. Anti-seizure medication may work quite effectively to control epilepsy for most patients, such that others may not know that one is epileptic. Even though employees are under no obligation to disclose to their colleagues about their illness, it is better to do so, because with awareness, the staff would

“THE WORKPLACE ENVIRONMENT HAS ALSO BECOME MORE COMPETITIVE WITH INCREASED DEMANDS ON EMPLOYEES. THIS HAS LED TO ELEVATED STRESS LEVELS IN THE WORKPLACE.” be more helpful to their colleague should the need arise. Consider adjusting the work schedule of a person with epilepsy so that he or she can have a break and a private area to rest after having a seizure, take medication or seek treatment. Flickering lights trigger some types of seizures (photosensitive epilepsy), and it would help to install an antiglare screen on the computer. A thick mat or carpet helps to cushion a fall during a seizure. Dr Kitulu advises employers to link employees with organisations such as

the Kenya Association for the Welfare of People with Epilepsy and Diabetes Management and Information Centre. “Such organisations have a lot of information that demystifies the illnesses and some even have support groups. Equip employees with basic first aid skills and avail emergency telephone numbers,” she says. Patricia is a freelance writer who specialises in medical journalism Email: muigaipat@gmail.com

DECEMBER 2011-JANUARY 2012

MANAGEMENT

EAT OUT WINE OF THEMONTH Warwick Estate Three Cape Ladies – 007’s wine of choice

Restaurant of THE MONTH Firefinch Restaurant

By CARL FAURE A South African wine features for the first time in a James Bond novel. His preferred choice of wine was the Warwick’s ‘Three Cape Ladies’ red blend for seducing the lovely Felicity Willing. Which I would say makes a lot of sense. This is possibly one of the most seductive wine I have come across. Purely South African in blend and character, Warwick uses the champion cultivars from the Cape. My advice buy 4 bottles now, drink one now, drink another in 15 years and sell the rest in 2028 for a lot of money. The Vineyard The grapes for this particular blend are a mix of varieties known either for spicy, fruity or full-bodied tannins. The blend is 31 per cent Shiraz, 36 per cent Pinotage, 30per cent Cabernet Sauvignon and 3 per cent Mourvedre. Winemaking The grapes were picked at optimum ripeness and fermented till dry in stainless steel tanks with daily pump overs and punch downs. The wine was then transferred to French oak barrels where it underwent Malolactic fermentation. After this it was racked back to tank, sculptured and returned to barrel. It then spent 28 months in the oak barrels. The wine was then blended. A rough filtration is done just before bottling. TASTING NOTE: Dark berry and stewed fruit aromas fuse with spicy pepper flavors, which compliment the full bodied ripe tannins. This blend brings the best of Pinotage to the classic French varieties and will age well for the next 15 years. Cost: KSh 2,720 available at WWW Shop and bar Junction www.eatout.co.ke/ winebar

By AHMAD SULEIMAN

he Firefinch restaurant at the Karen Country Lodge is surrounded by 17 acres of meticulously pampered greenery, essentially cocooning guests against the chaotic flurry that has become synonymous with the city. Karen has always been somewhat aloof to the city’s pace and the Firefinch restaurant has taken full advantage of the tranquil setting to create a multitude of ambient settings, ensuring patrons enjoy a getaway culinary experience. The extremely spacious wooded dining area under the gazebo is dotted with African style furniture and art pieces exuding the sort of Safari style charm infused with a chic-country kitchen feel which comes together as a special but informal dining space. With all of this going for it the food has to be competent enough to be on par with the platform set by the venue. The head chef Peter Mwangi whose has been plying his trade in Leeds, England has come up with an eclectic menu which dabbles on various cuisines with an underlying theme of simple, well prepared dishes garnished with his culinary know-how. The feta and cheese samosas were a pre-determined

starter, billed as a Firefinch speciality they did not disappoint. Encased in a deeply-fried pocket and served with a fruity relish, this dish can easily go wrong (fry for too long the feta can melt to mushiness) and culinary intuition plays a big role in getting them just right. For the mains I opted for the fish fillet meuniere, a pan fried red snapper in lemon butter which gave the dish a buoyant tastiness without overpowering the snapper. The fish was accompanied by an assortment of greens and mash potatoes reiterating the chef’s profound English influence; uncomplicated, subtle tastes that made for an all-round good meal. Firefinch have a pie and pint special on Monday evenings with an assortment of up to six pies to choose from to kickstart your week, priced at KSh 500. It makes for a great family weekend getaway on Sundays with a traditional English roast accompanied by a live band performance. The manicured lawns and able kitchen will ensure the Firefinch restaurant is no-longer a well kept secret among Karen locals. For bookings and more information on Karen Country Lodge Log onto www. eatout.co.ke/karencountrylodge

EAT OUT

An eclectic taste IN CUISINE

Sumayya Hassan-Athmani, MD National Oil Corporation of Kenya

Sumayya: I was trained as a lawyer and during the first few years at the company my main focus was on the law aspect; but I gradually rose through the ranks working in different areas and broadening my skill base. During that time an opportunity presented itself to go to Oxford Business School in the UK to study advanced Management. That was the catalyst to my transformation into the managerial sphere of National Oil. Most of your tertiary education was in the United Kingdom, how do you gauge your experience there; what did you miss most about home, the food? Looking at it from an educational point of view, the courses we did were very relevant and cutting edge equipping us with the skills and tools that we could implement at our chosen field. As a student, I enjoyed the diversity that only universities can immerse you in and I believe it does make you into a

(Laughs) Yes, I would like to think that I am. I tend to cook more of Swahili dishes, so a lot of coconut and spices involved. Recently there is a Moroccan soup called harira that I have been making for the family and it has proved to be a hit. Where are your favourite places to eat out; business lunches or leisure?

umayya HassanAthmani has shattered the glass ceiling effect rising to the upper rungs of the Kenyan corporate ladder. Carrying the torch for all future female leaders in the country and sitting at the peak of a major corporation, she is truly an inspiration. Recently confirmed as the Managing Director of National Oil Corporation of Kenya, the multi-faceted Sumayya tackles the juggling act of being a mother, wife and MD with her trademark calm efficiency. Eat Outâ&#x20AC;&#x2122;s Mikul Shah finds out more. Mikul: You were initially the company secretary and lawyer for National Oil, what prompted you to delve into another aspect of the company?

CEOâ&#x20AC;&#x2122;S PLATE

wholesome individual. At Oxford I was an executive student and we had a creative chef who spoilt us most days of the week with his theme nights take on catering. On the other hand when you are away from home, you do miss the little things you take for granted like tea leaves and spices. Are you open to trying out new and different types of cuisine, what have you tried recently? I have always been curious about different types of cuisines and am always up to trying new things. My family is always on the lookout for new restaurants around the city, and whenever I go to a restaurant I try to order something I have not tried on the menu. I was recently in Japan and some of the cuisine there tested my culinary threshold (raw jelly-fish), but I do enjoy Japanese cuisine on the whole especially teppanyaki. Are you a good cook and what are your favourite things to cook?

Most of my business lunches tend to be at the Mandhari restaurant at the Serena; not only because of its proximity to my office but because of their consistently brilliant service. I usually donâ&#x20AC;&#x2122;t have plenty of time during these lunches so their efficient service is commendable. Zen Gardens is great for the family and the relaxing ambiance is always welcome after the hectic week. Some time ago my children dragged me to Kentucky Fried Chicken (KFC), the long lines there put me off; I am not going to queue for fried chicken. What are your prominent childhood memories regarding food? I have beautiful memories of Ramadhan because of the sense of community that surrounds food. Food is a big part of our cultural heritage and it is more prominent during the Holy month of Ramadhan, acting as a binding tool for families and communities to come together and break their fast. How do you manage to balance your various roles as a head of a corporation and a home-maker? Sometimes I feel there are not enough hours in the day to tackle my various responsibilities, but as a home-maker I have to prioritise and ensure I have set aside time for my family and also my faith. My position enables me to represent the multiple faces of our population and constitution, and being able to inspire other young women is a fantastic privilege. Email: mshah@eatout.co.ke

DECEMBER 2011-JANUARY 2012

MANAGEMENT

Out and about IN THE HOLY CITY

By CHARLES KIMANI

erusalem is the holiest city for the world’s three monotheistic religions: Judaism, Christianity and Islam.The city, mainly the Old City, hosts several historic sites of these religions. The best view of Jerusalem’s Old City is the Mount of Olives, which is mentioned in the Bible, both in the New and Old testaments and I get to stand on the point that Jesus stood over 2,000 years ago. While coming from Jericho, he stood on the Mount of Olives and looked down over Jerusalem and prophesied that it would be destroyed. It is also on top of this mountain that Jesus is said to have ascended to heaven. While at the top you can see the imposing Dome of the Rock, known as the Golden Dome. This is where the Al Aqsa Mosque is located, at the square popularly known as the temple mount. It is the third most religious place in the Islamic religion after Mecca and Medina. It is the lighting rod of hatred with Jews because this is where the Jewish temple stood before Romans demolished it and Jews believe it will be rebuilt here in future.

MANAGEMENT

Below the Mount of Olives is the Garden of Gethsemane, meaning the garden of agony. It’s where Judas Iscariot betrayed Jesus and was also the last place Jesus prayed before being crucified. At the garden is the well-kept compound of Olive tress surrounding a big church- Church of agony where people and religious groups congregate for prayers. The other site you will not miss during your visit to Jerusalem is the famous Western Wall also called the Wailing Wall or the Cortel by the Jews. This is the most religious place of worship for the Jews and is believed that the gates of heaven are located here and are open to prayers. Anyone who prays on it is believed to have prayed on the gates of heaven. Built by King Solomon, it is the size of 22 football pitches. Solomon built it to hold and retain wall for the Dome of the Rock, which Jews believe is the place the foundation stone is. This is the closest point that Jews can get to the foundation stone which is inside the temple mount; the spot is believed to be the spot of the Holy of Holies.

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Here you will find many people praying, touching the wall and you are also allowed to write your prayer and post it on the wall as it is said that God will hear and have your prayers answered. Inside Jerusalem old city you will find one of the most famous places in the Christian churches known as the Church Of The Holy Sepulchre. Many Christians commonly know this site as Golgotha, Hebrew for the skull. This is the place that is believed that Adam was also buried. It is the same place that Jesus was said to have been buried before he rose to the sky. The place is situated on a higher place because crucifixion during that time used to be done out of the city and in a higher place where everyone could see. Here you will find the place that Jesus was crucified and the actual stone that was used is preserved here and people are allowed to touch it. The tomb that Jesus was buried in is also preserved. But you will, as I noted, have to queue for a long time just like other pilgrims if you are to get this opportunity to touch and see this place.

TRAVEL

My three exhilarating CITIES IN 2011 By NANA WANJAU

Royal Caribbean cruise A cruise is a once in a lifetime experience. Freedom of the seas is a marvel, the interior, service, the shear luxury, its six-star all the way. I spent the first few days/ nights, exploring the 15 deck ship, hosting 5000 people. I had a spa treatment, gym, ice skating, karaoke, casino, thoroughly shopped, swam in four pools, five jacuzzis, street carnivals, disco, wine tasting, Broadway theatres that rival New York anytime, it’s endless. Five days into the cruise, I discover a golf course simulator, miniature golf, a 30-foot rock climbing wall, basket ball courts, FlowRider surf simulator, restaurants... The ship is literally a huge floating city! In ten days I had climbed mountains and zip lines in Mexico, visited Grace Land where Bob Marley lies in state in Jamaica, shopped for diamonds in Cayman Islands, visited local villages in Haiti, scuba-dived in the most beautiful corals in the world, experienced cultures in St Thomas, Bahamas and Puerto Rico. These locations are legendary, remarkable landscapes and most adventurous, all on one cruise, one price and never needing to repack! It’s more than a vacation-it’s an experience like none other.

Ticket price includes entertainment, gym and full board meals, formal wear expected for formal occasions. New Orleans The birth place of Jazz, where everybody’s middle name is “Celebrate”. History says “It was here that the bright flash of European horns met the dark rumble of African drums; it was like lightning meeting thunder. The slaves mixed these sounds and created a new, wild, jubilant music. It felt alive and free! It made them dance.” I joined thousands of tourists in the middle of the street, in the middle of the day (and night), in the middle of the week, to dance! It’s a daily carnival! Admission to most of these clubs is free! And drinks are cheap. However, make a contribution to Philip (as in “Fill up the tip jar”). Gumbo (foods to eat before you die) and Jambalaya: these dishes are a typical example of the multicultural melting pot that defines New Orleans: seafood, chicken, sausage, all in one mix. Gumbo, means okra from the West African name kimgombo. Back home, I still enjoy the Gumbo and Jambalaya, with a Kenyan twist! I was also privileged to dine by the great Mississippi River with 3000 Rotarians from around the world. True fellowship.

Walt Disney World Resort, Orlando Its strength lies in the cross-generational appeal for adventure; at popular attractions like Splash Mountain, Space Mountain, Jungle Cruise and Haunted Mansion, it is common to find three generations participating. There are four theme parks, 6 golf courses, and twenty resort hotels, plus much more all interconnected by monorail, bus and boat rides across 10,000 acres of land. Transportation is complimentary for onsite Hotel Guests. The most spectacular of all Magic Kingdom perks are the parades and fireworks display: The “Wishes” fireworks show and the night-time favourite, Spectromagic. It is said “If these two performances don’t impress you, then you’re already dead and no one’s bothered to tell you! In Epcot, sample foods from 11 cultures, the best frozen margarita is in Mexico. Epcot has the fastest attractions in all Disney; Mission Space and Test Track, Other favourite attractions are Tower of Terror and Rock ‘n’ Roller Coaster: A high-speed roller coaster, that accelerate from zero to extremely high speeds, Upside-Down!! They are not for the faint hearted. Tip: Stay on property (Disney Resort Hotels), you get to have longer hours in the parks and many more perks. Email: mvnana26@gmail.com

DECEMBER 2011-JANUARY 2012

MANAGEMENT

CROSSWORD PUZZLE

CROSSWORD ANSWERS

MANAGEMENT

DECEMBER 2011-JANUARY 2012

MOTORING

used cars to avoid DURING INFLATION By GILBERT NG’ANG’A

ver the past ten months, imported car prices have significantly risen but of prime importance to second-hand car buyers are the models to steer clear of. As such, second hand cars—which constitute more than half of vehicles on Kenyan roads—have become unaffordable even as more people shun new cars due to high prices. The rising prices have added yet another twist to a trade which is usually fraught with doubts as dishonest sellers continue to take advantage of the demand. As buyers become more cautious, J.D. Power and Associates, a global marketing firm has published a survey showing which second-hand cars buyers should avoid buying. The findings of the study published by MoneyWatch, a news wire service are based on owner surveys showing the level of reliability records. Although car makers have been boosting the quality and reliability of the makes as competition in the car business heightens globally, the survey shows some of the vehicles, especially when bought in the second hand market were more likely to give owners trouble. In the study, MoneyWatch focused on 2008 models — the year ranked in the latest dependability study from J.D. Power and Associates. The thinking is that buying a three-year-old used car allows the seller to get a vehicle when the biggest new-car depreciation has already taken place. To make it in the MoneyWatch list of used-car rejects, a model had to get the minimum two out of five in the J.D. Power “circle ratings” for dependability. It also had to be ranked below average as a used car by Consumer Reports in its annual April car issue

and online car rankings. Top car makers such as Volkswagen, Ford and General Motors Corporation saw their models making it in the list. Despite Toyota’s recent recall problems and lagging sales this year, its dominance of numerous categories in three-year-old used cars could be an indicator that the Japanese company could be getting its reliability and quality right. Below are the second-hand cars to avoid: Small Cars: Volkswagen Beetle This is a car you will see on Nairobi streets and look at it not once as it comes in several unique colours and is a darling to many lady motorists. Owners of the 2008 model told Consumer Reports that they had trouble with the climate control system and power equipment, both of which can lead to expensive repairs. Midsize Car: Volkswagen Passat Kenya’s Ministry of Finance triggered a hullabaloo in 2009 when it announced in its budget that it was replacing all the big fuel guzzlers used by public officials with VW Passats, a Volkswagen brand. Finance Minister Uhuru Kenyatta argued the cars were less costly to maintain and would save the economy millions of shillings in fuel costs annually. In the survey by JD Power, a VW Passat gets the minimum two circles and a belowaverage rating from Consumer Reports. Owners reported problems with the fuel, electrical and climate systems and the power equipment.

Large SUV: Ford Expedition This model, known for its large capacity hauling is one of the top brands in the Ford’s list of big SUV cars. It gets the minimum two circles from J.D. Power and a worse-than-average Consumer Reports rating, where readers report problems with the transmission and the audio system. Email: management@kim.ac.ke

DECEMBER 2011-JANUARY 2012

MANAGEMENT

OFFICE DIARY

Taming the WANNABE BOSS’ PET “The reality is that unfortunately many of them aren’t very competent and the way they think they can make up for it is to get close to the boss.” By JOHN DEMBE

like being the boss. It has lots of advantages, the most important is that I don’t have anyone secondguessing my decisions or at least I don’t have anyone above me doing the second-guessing. Yes there is a Board of Directors but they don’t, nor should they, get involved in the day to day decision making. Their job is to look at the big picture and provide strategic direction. The problem with not having people second-guess me is that I also don’t have anyone I can really talk to. I thought about talking to Peter Njoroge, our Chairman, but he really isn’t a very approachable guy and besides, he is a lawyer and I am not sure he understands all of the complexities in our business. Talking to some of the colleagues I used to work closely with is also problematic. Some of them will be directly affected by some of the decisions I will be making. And besides, some of them have started to bend toward sucking up to the boss. I really despise sycophants (look that up in your Funk and Wagnalls). While I had a run in with Caroline a few weeks ago, that is not what I am talking about. You know the kind of folks that suck up to you big time. Anything you say they declare as brilliant and they are supposedly your biggest supporters. Most times these folks would also like to be part of your inner circle. The reality is that unfortunately many of them aren’t very competent and the way they think they can make up for it is to get close to the boss. Josiah is just one of those guys. He is currently the Financial Manager of our soft drink bottling operation and thinks he does a pretty good job, which he does. But he also is making a habit of dropping in to see me at least once per week, ostensibly to update

MANAGEMENT

me on the financial performance of his division. However, that is what we have our monthly management meetings for. In reality, Josiah is really fishing to see who I am going to put in charge of the consolidated finances and of course he thinks that should be him. I don’t let him spend a lot of time in my office, as I am still very busy. But I have always had an open door policy so I can very well entertain him, at least for a little while. Unfortunately for Josiah, his constant contact is bothering me so much that I have decided to give him one of the subordinate jobs in our consolidated Finance group. He won’t like it and he really would have been one of the short listed folks for the top job, but for his continuous dropping in to see me for no particular good reason and is fawning over me has soured him from my perspective. I thought about telling him this before I made the decision but I thought that if at his level he doesn’t understand it then maybe he isn’t as good as he thinks he is. I suspect Josiah used this technique on the former MD and I can only speculate that it worked. As one of a larger group of number two’s in Finance there will be no reason

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for Josiah to drop in and see me. If he does I will use the ‘chain of command’ argument to gently tell him that he should really review these ‘important’ issues and go through Miriam, the Financial Officer for our MPESA agency business, who I have decided to make the corporate Chief Financial Officer. I decided that the best way to accomplish all of this was to tell Miriam about her new role. She was obviously thrilled and she deserved it. In the last few audits we have had, the auditors have praised the financial integrity of her business. I am also a coward. Instead of telling Josiah myself I have decided that Miriam can do that job. Not only does it save me the anguish of dealing with Josiah’s fawning but it also sends a very direct message to him that he isn’t part of the inner circle. Unfortunately, I don’t think he will understand the reason. The only position left is our Corporate Human Resources Manager and after my ‘run in’ with Caroline, that is going to be an even more difficult decision. Do you have anything to tell Mr. Dembe? Email: management@kim.ac.ke