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Issue 67 June 2011 www.smeadvisor.com

ADCB BUSINESSEDGE â&#x20AC;&#x201C; Cutting edge financial solutions for Small and Medium Enterprises

Stars of Business

Awards & SUMMIT 2011

PUBLICATION LICENSED BY THE INTERNATIONAL MEDIA PRODUCTION ZONE, DUBAI TECHNOLOGY AND MEDIA FREE ZONE AUTHORITY

Be part of the action! Page 73

THE ART OF

A survival guide to know your enemy, understand the market, and strategise right.

Wage Protection System

Pitching to the media

Recycling lost sales

Special!

Responsib business le

Workplace diversity

ISSUE: 67 JUNE 2011

Contents 52

Emirates, gives advice on how best to pitch your story ideas to the media.

Sales

BLAST FROM THE PAST: Peter Heredia, Managing Director of Max Sales Solutions, offers tips on how to win back old customers and recycle lost opportunities.

Legal

36 GOING GLOBAL: Geethalakshimi. R, CEO and Managing Partner, aba Business Attorneys, provides a checklist which every SME should tick off before going international with their business.

Shoptalk 8 TRENDS AND UPDATES: A quick look at news and events that will impact SMEs in this region.

12 SHELF LIFE: New toys for you and your business. Like you need an excuse!

Banking on business

OPERATIONAL RISK MANAGEMENT: Operational risk and its management has evolved into a more logical and systematic process, says Amir Sohrabi, Alliances and Partners, Manager, SAS Middle East.

40 CRM SOLUTIONS: Businesses have yet to tap

Pricing

42 LEGAL AND GENERAL GULF: We take a look

24 EXPORT MARKETS: What should you

the full advantages of customer relationship management, says Vikram Suri, Managing Director, Middle East and India, Sage Software.

at a start up that used a modest budget to successfully integrate business with the right IT infrastructure.

design is the engine of the business, says Debbie Nicol, Principal Consultant and owner of business en motion. WORKPLACE DIVERSITY: Maximising and capitalising on workplace diversity has become an important issue for management, says Fahad Abdullah Al Ameri, Head, Human Resources & Public Relations, Al-Qahtani Pipe Coating Industries, KSA.

Marketing 32 TARGETING MEDIA: Alan Devereux, Communications Officer for the British Business Group, Dubai and Northern

the Jumeirah Group turned its CSR marketing strategy on its head and leveraged social media for its turtle rehabilitation project.

Business pin-up 56 CYNTHIA TRENCH: Ketaki Banga chats with the first female expatriate licensed legal consultant in Dubai, known in some circles asâ&#x20AC;&#x153;The Rottweilerâ&#x20AC;?.

Business growth

does Frankenstein have in common with your business, asks Vikram Venkataraman, Director, Salvus Strategic Advisors.

Responsible business CORPORATE GOVERANCE: Mike Byrne talks to Maali Qasem, founder of Schema, about the thorny issue of corporate governance in the region.

48 NON-EXECUTIVE DIRECTORS: Julie Irving, Partner of NxD-global, shares her top reasons why SMEs should include a non-executive director in their business development plans.

Managing Director of Bliss Initiative takes us through a typical day in his life.

60 MODULA-CONCEPTIO: Sabina Sinha, Owner, and Kavita Bahadur, Director, sketch us their business day.

provides competitive advantage in an evolving business environment, says

SME about town

62 ADCB MBA WORKSHOP: ADCB played host to MBA students from Thunderbird University.

63 DKV TRAINING OPEN WEEK: This event included 20 workshops and seminars focusing on diverse segments such as HR, marketing, sales and personal development.

64 TECOM SME BUILDER: The 14th edition gave owners of SMEs an opportunity to upgrade their business management skills.

Industry watch

66 EMPLOYMENT: Findings from the latest online poll series conducted by job site Bayt.com.

68 MEDIA: A recent survey suggests that the age old saga between media and PR is still burning.

Corporate wellness

70 INSURANCE: Independent financial adviser Greg Pogonowski cautions against common illnesses and the potential losses that could result from them.

72 HEALTH AND SAFETY: Occupational health specialist Dr. Sarah Peeters talks about vital preparations before heading off for a much needed vacation.

SUSTAINABILITY: Sustainability is about more than just being a green business, says Amanda Line, Regional Director ICAEW Middle East.

52 CSR: Corporate social responsibility

A day in the life

59 AHMAD AL HIDIQ: The Co-Founder and

44 ORGANISATIONAL STRUCTURE: What

charge in foreign markets? This decision is based on more than simply converting your domestic price into another currency, advises Dr. Ashraf Mahate.

Management 28 DRIVING YOUR BUSINESS: Organisational

54 CAUSE AND EFFECT: Ketaki Banga looks at how

WPS: Isaac Thomas, Vice President and Head of Cash Management, ADCB, provides a guide to the Wage Protection System and working efficiently with your bank.

20 THE ART OF WAR: John Lincoln, VicePresident- Enterprise Marketing, du, provides a pricing survival guide while pitting your products against the competition.

Technology for business

Tatjana de Kerros, an independent research analyst and consultant.

SIGN OFF: Guillaume Mariole, from Ignite Fitness & Wellness, advises women executives on how to hide a multitude of sins.

Editorial

Publisher Dominic De Sousa COO Nadeem Hood Commercial Director Richard Judd richard@cpidubai.com +971 4 440 9126

Sales Director Raz Islam raz@cpidubai.com +971 4 440 9129 EDITORIAL Dave Reeder dave@cpidubai.com +971 4 440 9106 Senior Editor Ketaki Banga ketaki@cpidubai.com +971 4 440 9115 Assistant Editor Mike Byrne mikeb@cpidubai.com +971 440 9105 ADVERTISING

The price of profitability The superior man understands what is right; the inferior man understands what will sell, said Confucius. Idealism be damned, will it make money? If you’re a starry-eyed dreamer, then this is when you cue Pink Floyd’s Wish You Were Here and mourn to the melancholy strains of: Did you exchange A walk on part in the war For a lead role in a cage? Right, now that you’ve got it out of your system,

let’s face it – you sell, all the time! Get used to it. You sell the “concept of you” at job interviews, while finding a life partner, when waiting to be seated in a restaurant; even when you act like you couldn’t care less, you are selling an image of you to the world. And what is sold has a price. That is what we’ve grappled with this month. Setting a price tag on something is as much an exercise in profitability as it is in psychology. That thing you saw in the supermarket that costs 0.99, for instance, is just the tip of the iceberg. When selling something, you have to evaluate the market, the competition, the customers and a million other issues. But, most of all, you have to figure out what dream you are selling, what wish you are fulfilling – however trivial and fleeting – and at what price to make it worth everyone’s while.

The price says a lot about the product. Does it say the right thing? Does it do the right things for the product? For your customers? For you and your business? We cover it all in our special section on pricing, starting page 20. And once you’ve got the strategies right this month, we’ll look at how to avoid a price war next month. Or, if that’s too tame for you, we’ll show you how to engage in a price war and win, but not by selling yourself short; that’s for the short sighted. As Ayn Rand said, money demands that you sell, not your weakness to men’s stupidity, but your talent to their reason. We have a few tricks up our sleeves, so keep coming back for more. Until next month...

Ketaki Banga, Senior Editor Talk to us: E-mail: ketaki@cpidubai.com Twitter: @SMEadvisorME Facebook: www.facebook.com/ SMEAdvisor

Commercial Director Richard Judd richard@cpidubai.com +971 4 440 9126 Sales Director Raz Islam raz@cpidubai.com +971 4 440 9129 Key Accounts Manager Faaju Abdul Fatah faaju@cpidubai.com +971 56 674 5757 CIO PROGRAMMES CIO Programmes and Events Lead Kavitha Rajasekhar kavitha@cpidubai.com +971 4 440 9132 CIRCULATION Database and Circulation Manager Rajeesh M rajeesh@cpidubai.com +971 4 440 9147 PRODUCTION AND DESIGN Production Manager James P Tharian james@cpidubai.com +971 4 440 9146 Designer Froilan A. Cosgafa IV froilan@cpidubai.com +971 4 440 9107 DIGITAL SERVICES www.smeadvisor.com Digital Services Manager Tristan Troy Maagma Web Developers Jerus King Bation Erik Briones Jefferson de Joya Louie Alma online@cpidubai.com +971 4 440 9100

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Head Office PO Box 13700 Dubai, UAE Tel: +971 4 440 9100 Fax: +971 4 447 2409 Printed by Printwell Printing Press LLC © Copyright 2011 CPI All rights reserved While the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.

Introducing Server Room in a Box

APC rackbased cooling draws in hot air from the rear, at its source, and then sends conditioned air out of the front, ready to be used by adjoining racks.

APC integrated cooling future-proofs your IT room without breaking the bank Is your server room a barrier to adopting new technologies?

Consolidation, virtualization, network convergence, blade servers — these new technologies improve efficiency, cut costs, and allow you to 'do more with less.' But they also bring high-density power, cooling, and management challenges that server rooms were never designed to handle. You’re relying on guesswork, depending on building air conditioning, or improvising remedies. So, how can you increase the level of reliability and control in your server room without spending a fortune? Introducing the APC by Schneider Electric™ total server room solution Now you can get power, cooling, monitoring, and management components that easily deploy together as a complete, integrated solution. Everything has been pre-engineered to work together and integrate seamlessly with your existing equipment. Just slide this proven, plug-and-play solution into most existing spaces — there’s no need for confusing cooling configurations or expensive mechanical re-engineering. The modular, 'pay as you grow' design lets you be 100% confident that your server room will keep pace with ever-changing demands. Future-proof your server room easily, cost-effectively

If you have dedicated IT space… Get pre-validated, high-density cooling as a single offering. APC InRow SC System combines an InRow SC precision cooling unit (up to 7 kW capacity), NetShelter SX rack enclosure, and rack air containment system.

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APC takes the hassle out of configuring server rooms. Self-contained InRow™ cooling units, high-density NetShelter™ enclosures, and the APC rack air containment system combine to create a proper IT ecosystem in almost any environment. Rack-level monitoring sensors, intelligent controls built into the cooling unit, and integrated management software provide complete remote control and unprecedented visibility into the entire system. Simply add power protection (such as undisputed best-in-class Smart-UPS™ or Symmetra™ units) and you have a total solution for today, tomorrow, and beyond.

These solutions integrate power, cooling, and management in a secure, quiet, cooled enclosure that’s indistinguishable from other office furniture.

Download the White Paper, ‘Cooling Solutions for Rack Equipment with Side-to-Side Airﬂow’, and get a chance to WIN a Lenovo® all-in-one touch screen PC! Visit www.apc.com/promo Key Code 89345t Call +9714 7099690 (Arabic) / +9714 7099691 (English) • Fax +9714 7099650 ©2011 Schneider Electric. All Rights Reserved. Schneider Electric, APC, InRow, NetShelter, Smart-UPS, and Symmetra are trademarks owned by Schneider Electric Industries SAS or its affiliated companies. All other trademarks are property of their respective owners. • APC Middle East, PO Box – 53852, Dubai, United Arab Emirates • 998-2029_GB

SHOPTALK trends & updates <<<

Dubai SME releases sector-specific studies identifying existing gaps and opportunities Dubai SME, an agency of the Department of Economic Development, has released three comprehensive studies identifying existing gaps and opportunities in terms of investment and policy reforms across critical industry sectors. Transport and storage, food and beverage, and manufacturing and media industries are the three sectors evaluated as part of the study, undertaken with consultants from Dun & Bradstreet Middle East and South Asia in the latter half of 2010. The study on three of the most vibrant sectors of Dubai’s economy, with a vast potential for SMEs, will help investors, entrepreneurs, financial houses and policy-makers to refine their focus and make intelligent choices. These sectors were chosen in view of the large SME base and opportunities for new business as well as potential for productivity, innovation, and value addition to Dubai economy. Dubai SME hosted three workshops at the Business Village, Dubai on the 9th, 10th and 11th of May 2011 to share the findings with various stakeholders in SME development. The study found that the transport and storage industry, in which Dubai is an acknowledged regional leader, still has substantial room for improvements in terms of reforms and overall efficiency. In the 2010 Logistics Performance Index, the UAE was ranked 24th among 155 countries but its sub-

SME ADVISOR MIDDLE EAST

rankings in quality, productivity, technology, delivery time and access calls for further expertise and investment. Research, development and the integration of advanced logistics technology and skill enhancement programmes on supply chain operations will enable SMEs to escalate their offering from basic operations in transport and storage to critical supplies, the study said. The study also proposed policy reforms to facilitate intra-GCC goods movement and better co-ordination between the government and the industry to enhance the regulatory environment. Underlining Dubai’s advantages and status as the Arab media hub, the study said SMEs present a strong platform for Dubai to build on its advantages and face rising regional competition. Building talent and knowledge of intellectual property rights (IRP), promoting entrepreneurial opportunities

JUNE 2011

“Understanding the competitive landscape, operating environment, riskreward structures, international orientation, and overall growth prospects will help investors, funding agencies and policymakers adopt the right SME approach. Ultimately, any sound investment and policy has sustainability as the end goal.” - His Excellency Abdul Basit Al Janahi, Chief Executive Officer of Dubai SME

through seed capital and funding, competitive broadband costs, and SME involvement in creative development and state-of-the-art digital delivery channels such as mobile-based applications are among the focus areas in the media industry proposed by the study. Food security concerns in the GCC and the need for developing capabilities in the manufacturing, processing and storage of food present abundant potential for SMEs in this sector, according to the study. Leveraging existing retail networks to market SMEmanufactured products as well as policy reforms to promote their exports would make SME investment in this sector viable. Commenting on the study, His Excellency Abdul Basit Al Janahi, Chief Executive Officer of Dubai SME, said: “Understanding the competitive landscape, operating environment, riskreward structures, international orientation, and overall growth prospects will help investors, funding agencies and policymakers adopt the right SME approach. Ultimately, any sound investment and policy has sustainability as the end goal.” Al Janahi added: “Identifying and evaluating SME prospects and opportunities is part of our remit to enable realistic SME growth in Dubai. The strategic plan of Dubai SME stresses on an industry-specific perspective, as firms grow in the context of their respective industry.”

SHOPTALK >>>trends & updates

UAE finalises making plastic bags biodegradable by 2013 The UAE has finalised the systems and processes to make plastic bags in the country biodegradable over the next two years. This is in line with the decision of Emirates Authority for Standardisation and Metrology (ESMA), supported by the UAE Ministry of Environment and Water. All providers and suppliers of oxo-biodegradable additives – ingredients that will enable plastic bags to degrade quickly – need to be verified and approved by ESMA before they can deal with plastic manufacturers and traders, according to a senior government official. Engineer Mohammad Saleh Badri, Acting Director General, ESMA, said: “All plastic bags used in the UAE must be biodegradable from 2013 so all the supermarkets, shops and stores, plastic manufacturers and suppliers, and all the people using them should be made aware of this regulation and practice it. “We now put a system on how to do this. We’re currently coordinating with the providers of plastics, including the manufacturers and the traders, informing them that they need to be registered with and verified by ESMA. We have started the dialogue with them and we’re conducting a series of educational

A team of experts shall conduct an audit on the entire process from the use of raw material till the production of plastic bags. All plastics that are biodegradable will bear a “Mark of Conformity” or a logo that shows they meet the government standards sessions where we explain the systems and processes they have to go through.” To date, three suppliers of these granular additives have been approved by ESMA – Wells Plastics Limited for the manufacturing of Reverte Oxo-Biodegradable additives; Symphony Environmental Limited for the manufacturing of d2w OxoBiodegradable additives; and Bin Hilal Enterprises for the manufacturing of Willow Ridge Oxo-Biodegradable additives. It is estimated that there are more than 100 manufacturers and suppliers of Bio or OxoBiodegradable additives in the UAE. About 95% of the plastic bags used in UAE are manufactured in the country and only 5% are imported from outside. The verification aims to ensure that the process of degradation will not harm the people and environment. ESMA’s process of verification

assures that the manufacturers fully comply with the requirements set by the Technical Regulation issued by the UAE cabinet. A team of experts shall conduct an audit on the entire process from the use of raw material till the production of plastic bags. The whole chain needs the verification and approval of ESMA. All plastics that are biodegradable will bear a “Mark of Conformity” or a logo that shows they meet the government standards. The logo has been approved by ESMA’s Board of Director, chaired by Rashid Ahmed Bin Fahad, also Minister of Environment and Water. Plastic bags pose a danger to the environment because some chemicals in the material are toxic and take thousands of years to break down. The toxic substance enters the food chain by seeping into the soil during its breakdown process, and causes a threat to animals and birds where they may either ingest or choke to death by plastic wraps. Half the camel deaths each year in the UAE are due to them ingesting plastic bags, according to a study by the Ministry of Environment and Water. Globally, the detrimental effects of plastics in the environment have been well documented. The UN Environment Programme

JUNE 2011

(UNEP) estimated in 2006 that every square mile of ocean contains 46,000 pieces of floating plastic and that 70% to 80% of reported marine debris worldwide is plastic. A UNEP study shows that plastic debris causes the deaths of more than a million seabirds every year, as well as more than 100,000 marine mammals. In 1992 the US alone produced 60 billion pounds of thermoplastic. That number doubled to 120 billion per year. Every year some 5.5 quadrillion (5.5×1015) plastic pellets – about 250 billion pounds of them – are produced worldwide for use in the manufacture of plastic products. According to a study conducted by the Ministry of Environment and Water, nearly 12 billion plastic bags are used a year in the UAE. In Abu Dhabi, plastic makes up 19% of domestic waste in the city, according to the Centre for Waste Management. The UAE launched a nation-wide campaign in October 2009 to reduce nonbiodegradable plastic bags in four phases, after a survey conducted by the Ministry of Environment and Water showed that plastic bags and other plastic material added to 10.9% of the total amount of household waste a year. The four phases involved education and awareness at the public and academic levels, finding alternatives to plastic bags, and setting of legalities by authorities. The final phase involves the actual move to reduce and prevent the manufacture of plastic bags by year 2013.

SME ADVISOR MIDDLE EAST

SHOPTALK trends & updates <<<

SMEs represent key investment opportunity in Pakistan

Tom Speechley, Chief Executive Officer of Riyada Enterprise Development “Small and mediumsized enterprises (SMEs) are the engine of future economic growth and a vital source of social and economic stability,”Tom Speechley, Chief Executive Officer of Riyada Enterprise Development (RED) told business leaders,

academics and young entrepreneurs at a key industry event held in Islamabad on May 7th. He added: “The provision of both financial and non-financial support to Pakistan’s SMEs is critical if we wish to see the sort of transformational change that has occurred in other emerging

economies over the last few years.” Addressing over 1,200 delegates at the Bounce Back, TiECON Pakistan 2011 conference organised by The Indus Entrepreneurs (TiE), a global non-profit focused on promoting entrepreneurship, he highlighted the support that the private equity industry could and should provide to the SME sector in order for it to become an engine of economic growth in the region’s markets. Speechley noted that while 90% of enterprises in Pakistan were SME in nature and generated 70% of employment opportunities, they contributed only 30% to the country’s gross domestic product (GDP). This was not a challenge specific only to Pakistan, but rather one affecting emerging markets as a whole, and an issue that needed to be addressed through the concerted support of the

private and public sectors in their respective areas of influence. Speaking at the conference, Speechley said, “The case for the private equity industry to provide long term financial support to this sector is more compelling than ever. Encouraging productivity, bringing financial discipline and providing patient capital to entrepreneurs can dramatically improve the performance of SMEs as a whole – and deliver enormous returns to investors, shareholders and indeed the wider stakeholder community.” Recognising the distinct roles that the private and public sector play, he encouraged the creation of an environment where innovation and entrepreneurship could thrive. He added, “We must applaud the work of the Small and Medium Enterprises Development Authority (SMEDA), the TiE organisation and other bodies that are playing a leadership role in the SME space. For our part, RED is a firm believer in the investment opportunities presented by the SME sector in Pakistan and high growth, entrepreneur-led businesses in particular.”

RAKIA issues 491 business licences in first quarter Ras Al Khaimah Investment Authority (RAKIA), a provider of investment opportunities and one-stop solutions in its free zones, industrial parks and offshore facilities as well as in real estate developments and other ventures, has revealed that it has issued 491 new licenses in the first four months of 2011, with April itself seeing as many as 130 licenses granted. RAKIA also pointed out that 556 licenses were renewed this year. There are now 4,170 business licences issued by RAKIA since 2006, broken into 1,190 consulting/service companies, 1,291 trading/general

SME ADVISOR MIDDLE EAST

trading businesses, 694 commercial companies, 660 industrial firms and 335 media businesses. With regard to the area of land leased, RAKIA reported that a total of 317,644 square meters have been leased in the first four months of 2011, carrying forward the momentum from the previous year when the total area of land leased reached over one million square meters from just 353,046 square metres in 2009. Further, the January to April 2011 period saw a total of 18,465 square meters of warehouse leased. Dr. Khater Massaad, CEO, RAKIA, said: “By strengthening our global reach and through very productive

JUNE 2011

marketing campaigns, we have accelerated the momentum from 2010, which also was an excellent year for us in terms of performance. The progress we have achieved in the first four months of 2011 puts us firmly on track for another highly successful and productive year. RAKIA continues to grow in appeal as an investment destination of choice both regionally and across the world, which is a testament to the strong support from the RAK Government and the quality of facilities we offer to investors.” RAKIA also revealed that its recent participation in the highlyawaited international trade shows – Hannover Messe and Industries

Lyon in France – generated tremendous interest from several European countries and many foreign companies who are keen on setting up their operations in Ras Al Khaimah. Other key exhibitions that RAKIA participated this year include the Middle East Electricity Exhibition in Dubai; Gulf Industry Fair in Bahrain; Chem Tech in India; Gulf Food Exhibition in Dubai; Gulf Glass in Abu Dhabi; Plas Print Pack 3P Exhibition in Pakistan and the 13th OIC Expo in Sharjah. The first four months of 2011 also saw RAKIA organise road shows in Pune (India), New York, Detroit, Dubai and Ras Al Khaimah.

SHOPTALK >>>trends & updates

Russian businesses unite under umbrella of Dubai Chamber

UAE and Russian delegates and businesspeople at the opening ceremony

The Russian Business Council, which has become the 39th Business Council operating under the umbrella of Dubai Chamber of Commerce and Industry, was officially launched on April 27th at a ceremony held at The Palm Jumeirah Zabeel Saray Hotel. Led by Dr. Igor Egorov, the Council has representatives from a number of companies, coowned and operated in Dubai by Russian businesspeople from general trading, publishing, event management, interior design, consulting, radio broadcasting and many more. H.E. Andrew V. Andreev, Russian Ambassador to the UAE, said: “We consider the launch of the Russian Business Council in Dubai and Northern Emirates as a vivid confirmation of the dynamic

development of Russian-Emirati relations. Undoubtedly, this launch has a special colour because it is taking place in the year of 40th anniversary of diplomatic relations between Russia and the UAE. “We note with satisfaction that our countries are bound with strong ties of friendship and co-operation and we consider the UAE as our important political and economic partner in the Middle East. The turnover between Russia and the UAE is increasing from year to year as well as activities in the field of investments. The number of Russian companies doing business in the UAE is also increasing. “In general we think that the Russian Business Council activity will become an important factor in the development of RussianEmirati relations. And in this respect the Council may rely on full support from the Russian Embassy

“Dubai is home to 394 Russian partnership and ownership companies while the country is ranked 43rd in the list of the Emirate’s top trading partners as it offers a fertile environment for Russian investments. Dubai’s non-oil trade with the country reached AED 3.25 billion at the end of 2009 and there is tremendous scope to take these figures to a higher level.” - H.E. Hamad Buamim, Director General, Dubai Chamber JUNE 2011

in the UAE,” said the Ambassador. Welcoming the newlyformed Russian Business Council, H.E. Hamad Buamim, Director General, Dubai Chamber, said that the Council will help business communities in the UAE and Russia to establish stronger trade ties and contribute to the economic development of both the countries. Buamim said: “Dubai is home to 394 Russian partnership and ownership companies while the country is ranked 43rd in the list of the Emirate’s top trading partners as it offers a fertile environment for Russian investments. Dubai’s nonoil trade with the country reached AED 3.25 billion at the end of 2009 and there is tremendous scope to take these figures to a higher level.” Buamim further added that Russian investments are increasing every year and their companies are expanding globally while looking for different markets. “It’s here that Dubai can assist Russian businesses wanting to reach out to the Gulf region as well as different countries of the world due to its strategic location providing easy access to South Asian, African, Latin American and Far Eastern markets,” he said. Serghey Tokarev, General Secretary of the Russian Business Council in Dubai and Northern Emirates said, “We are delighted, that finally all Russian businesspeople and entrepreneurs got their own house, where the doors are always open for business ideas sharing, free networking, partnership seeking opportunities and other issues related to the establishment of strong and transparent mutual relations among our business communities, as well as to the spread of business activities of Russian companies in the UAE and vice-versa.”

SME ADVISOR MIDDLE EAST

Slihfeelf New toys for youss. ine and your buansex cuse! Like you need

Cloud coverage IBM has announced new cloud analytics software, Coremetrics Lifecycle, to help customers capitalise on marketing milestones. From customer acquisition to retention, marketers can make the most of their interactions with prospects across online marketing channels, including email, display advertising, search marketing and social media, based on real customer behaviour. The software helps remove the guesswork in determining which campaigns and content are most effective with customers by providing analytics-based insight into how customer lifecycles speed up or slow down over time. The solution includes: Prebuilt and customisable lifecycle templates, designed to meet the needs of a range of industries. Actionable insights into online marketing program effectiveness, content viewed and products purchased at every milestone of the customer lifecycle. Integration with other core metrics solutions for rapid retargeting of customer segments.

SME ADVISOR MIDDLE EAST

FUTURISTIC FUN The launch of the new Mercedes SLK AMG has caused quite a stir. With its gull-wing doors iconic of scenes from Back to the future, this sports car’s success has been echoed in the Middle East region, with the vehicle securing its spot as the best selling super sports car within eight months of its market launch in Q2 2010. The SLS AMG reads impressively: aluminium space frame body, AMG 6.3 litre V8 front midengine with dry sump lubrication, 420 kW (571 hp) and 650 newton metres of torque, seven-

speed dual clutch transmission in transaxle configuration and a nimble doublewishbone aluminium sports suspension. The SLS AMG is capable of accelerating from 0 to 100 km/h (62 mph) in 3.8 seconds, and can reach an electronically limited top speed of 197 mph (317 km/h). And the asking price? This can be all yours for a cool starting price of USD 200,000!

Dial-a-jet Chapman Freeborn has unveiled a unique iPhone app which will set the standard for quick, accurate and executive-friendly onthe-go charter enquiries. The aircraft charter broker launched Private Jet, an application which gives users immediate access to thousands of aircraft worldwide. In a region where private travel is thriving, Chapman Freeborn’s new app will support the Middle East by providing immediate and real time updates on flight times, availabilities and price.

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The app provides instant indicative quotes according to live market information based on users’ entries on the requirements of the passengers. Within seconds of a search Private Jet identifies a selection of aircraft options including high-resolution photographs and valuable information such as flight times and fuel stops. The app also allows customers to submit their request direct from their handset to Chapman Freeborn’s global offices - manned around the clock by charter professionals.

SUPER SCAN

Protect, share and sync

Canon Middle East has announced the launch of its updated image formula DR-3010C scanner, operating more than 30% faster than its previous scanning speed. It also comes with additional software enhancements, providing customers with more value and performance without any corresponding increase in cost. The compact DR-3010C is now capable of scanning at speeds of 40ppm in black and white, compared to 30ppm on the previous version. The same speed and performance level is maintained even when scanning at 300dpi resolution, often a requirement for accurate OCR scanning. Patch code separation is now also possible with new driver software allowing users to save time with on-the-fly batch separation of documents. Other new features on the DR-3010C include the ability to scan documents up to three metres in length (such as cash receipts or medical charts). The new multi-stream support also provides simultaneous output of both colour and black and white images.

Trend Micro Features Incorporated has announced • Secure online data storage and back up with the release of synchronisation SafeSync for • Anytime, anywhere file accessing, editing, and organising Business to help • Sharing files for team collaboration – File even the smallest server as a service companies • No file size limits and folder permissions securely save, • Multiple users per account – One license for manage and the company access their • Continuous, automatic file synchronisation digital files from • Video and music streaming to compatible anywhere at hand-held devices any time, while • Centralised management for administrator increasing • Instant secure link sharing with any third party productivity by – External file and folder sharing support • Deleted file recovery with unlimited versioning enabling file • Windows and Mac fully supported sharing between • iPhone/iPad and Android supported co-workers and • Any Web enable device supported clients. Using secure cloud-based technology, SafeSync for Business is designed to let users easily access and share all their data while ensuring that they are protected, saved and up to date across multiple computers and mobile devices via synchronisation technology.

TOUCH AND FEEL Iomega, has announced the opening of the new Iomega Experience Centre in Dubai, United Arab Emirates, where consumers and small businesses can experience firsthand the latest advances in data storage management solutions. The centre is an 800-squarefoot showplace featuring Iomega’s newest storage management products, including portable and desktop HDDs, high capacity solid state drives, multimedia drives for online entertainment, and network storage solutions for consumers and small and mid-sized businesses. Customers interested in small and medium business solutions will find a dedicated product area with live demonstrations of Iomega’s single, double and quad-drive desktop network drives and network attached storage devices (NAS). Also on display will be Iomega’s new personal cloud technology, which allows users of Iomega network hard drives to remotely access and share encrypted files with up to 250 co-workers and friends. Also featured will be the new Iomega SuperHero backup and charger for iPhone, which simultaneously charges a docked iPhone and backs up and encrypts the SmartPhone’s contacts and photos, protecting the user from losing critical data should their iPhone be damaged, lost or stolen.

SME ADVISOR MIDDLE EAST

JUNE 2011

Apps in motion Research In Motion (RIM) have announced that the BlackBerry App World service has launched in the United Arab Emirates (UAE), offering BlackBerry SmartPhone customers easy access to a broad range of mobile applications. The service is now available in a number of Middle East countries including UAE, Kuwait, Qatar, Jordan, Bahrain and Lebanon. BlackBerry App World, the official on-device app store for BlackBerry SmartPhones, allows customers to easily discover, download and enjoy applications that are purpose-built for their BlackBerry SmartPhones. Key features of BlackBerry App World • Front page carousel - showcases several applications on its front page carousel, making it easy for users to browse through a select number of featured applications. These applications vary from time to time, helping users discover new applications. • Top downloads – The “Top Downloads” area on BlackBerry App World lists applications that are the most downloaded. • Categories – Features a variety of application categories, including entertainment, IM and social networking, news, weather, productivity and more. • Application storage – Includes a folder called My World, which keeps track of applications the user has downloaded. It is a personal storage space that allows users to uninstall and re-install applications.

BANKING ON BUSINESS SALARIES <<<

WAGE PROTECTION SYSTEM Isaac Thomas, Vice President and Head of Cash Management, ADCB, provides a guide to the Wage Protection System (WPS) and working efficiently with your bank.

Established as per the Ministerial Decree No.788 by the Ministry of Labour (MOL) in September 2009, the process requires all companies registered under the MOL to pay their employee salaries through the system. The WPS covers all sectors, as registered with the MOL and benefits different categories of labour. It is an electronic

SME ADVISOR MIDDLE EAST

Since its implementation, we have seen close to 2.7 million workers and 130,000 employers reaping the benefits of WPS

JUNE 2011

salary transfer system that allows institutions to pay workersâ&#x20AC;&#x2122; wage via banks, exchange houses, and financial institutions approved and authorised to provide the service. The following were the objectives of WPS when it was setup: Assuring the commitment of UAE to protect workerâ&#x20AC;&#x2122;s wages. Taking protective and pro-

active measures to reduce labour disputes pertaining to wages. Worker salaries to be routed through the banking system in a systematic and orderly manner Ensure salaries are paid on time Declared salaries and other monetary allowances (as per the labour contract) are paid correctly by their employers

BANKING ON BUSINESS

Salaries are received through accredited, secure and efficient channels, i.e., bank account, prepaid/payroll card, over-thecounter and cash collection at exchange houses WPS involves the following parties: Workers: Each and every worker in the private sector and who has a labour card issued by the MOL Employers: Company or institutions registered with the MOL. Government bodies are exempt from WPS Banks: The Financial Institutions which the employer has a bank account with Agent: Any bank, exchange house, or financial institution, approved by the Central Bank to offer WPS. Since its implementation, we have seen close to 2.7 million workers and 130,000 employers reaping the benefits of WPS. The chart below, from the Central Bank, suggests the extra-ordinary growth of WPS clients since its inception.

Impact of WPS In a way, WPS has created a great opportunity for banks and financial institutions to engage their corporate clients in delivering a more efficient

new work permits, and this is a good incentive for the company to comply with the WPS. Another consequence of the WPS is that now disclosures need to be made to the MOL, impacting on the ability of local companies to sponsor the employees of international businesses that do not have a corporate presence in the UAE. While WPS offers wage protection to all employees, the unskilled workers are the ones particularly vulnerable today. They need special attention, but there are some difficulties experienced in extending the WPS to this sector. While some banks have shown unwillingness to open accounts for low income workers, it has created opportunities for others to introduce payroll cards allowing workers to receive cash through any UAE-based bankâ&#x20AC;&#x2122;s ATM machines. Some banks have invested in allowing corporate to upload the salary file into their electronic banking platforms for further processing and transmission to the Central Bank. Others have tied-up with exchange houses and third party card providers and bundled end-to-end solutions intended for both the corporate and its employees.

Isaac Thomas and reliable salary transfer service. Gone are the days of workers being at the mercy of their employers with regards to receiving correct salaries at the prescribed salary date. WPS has ensured that workers are paid the correct salaries at the proper time, and any violation by the employer entail immediate suspension of their

Defaulting companies can be easily identified, and sanctions are simple and yet quite harsh. Defaulting companies are prevented from obtaining new work permits, and this is a good incentive WPS process for the company The following processes are to comply with involved: Company to open an account the WPS with one of the banks for this purpose. They can use their existing bankers, if they have one. There should be an agreement between the company and the agent to provide this service for them.

privileges with the Ministry. Defaulting companies can be easily identified, and sanctions are simple and yet quite harsh. Defaulting companies are prevented from obtaining JUNE 2011

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BANKING ON BUSINESS

Commercial terms are decided and agreed on a bilateral basis. The company prepares the wages list and sends it to the bank for onwards processing by the WPS. The delivery channel used can vary but the agent needs to forward an electronic file to the WPS. The MOL provides companies with a tool to create salary files (SIF), which can be used by them to be sent to their respective banks for salary distribution. The WPS validates the wage related details with the information registered with the MOL. Once validated, these wages are then approved for processing by the banks.

Challenges for the banks Banks are facing stiff competition with exchange houses and third party card providers in the following areas: Exchange houses and third party card providers do not need an employee account to

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Benefits of the ADCB proposition • We currently process around 2000 SIF files serving around distinct 1600 customers. ADCB has a success rate of greater than 92% in terms of processing the SIF files. Over 70% is serving our SME client base. • Fully automated systems to process both SIF and PAF files. • Customer uploads SIF file through a secured hard token based login and upload files which are then processed using straight through process mechanism. Alerts are generated and transmitted to customers email inbox for various activities done on the file. • ADCB also has a dedicated service desk for WPS customer to offer them guidance and information for the processing of WPS payments.

be opened for salary transfers Times in processing transactions relative to exchange house and third party card providers Cross sell opportunities on the employee accounts Key differentiators in the WPS offerings today among the JUNE 2011

While some banks have shown unwillingness to open accounts for low income workers, it has created opportunities for others to introduce payroll cards allowing workers to receive cash through any UAE-based bank’s ATM machines

corporate clients: Fast and secure way of transmitting the SIF, normally achieved through electronic banking Convenience for staff in receiving their salaries, i.e., through payroll card, cash delivery at the labour camps, worksites and accounts Potential tie-ups or valueadded services relating to remittance services, utility bill payments, over-the-counter shopping WPS is here to stay and will evolve into a more robust mechanism to ensure complete transparency and automation of employee rewards and entitlements for all labour categories. SME companies, given their staff size and efficiency needs, cannot afford to have multiple parties for their banking and WPS needs, and banks on their part, cannot assume that WPS is a trivial requirement. In that sense, both banks and these companies need to work together on a win-win situation with regards to the WPS business.

ABOUT: Isaac Thomas is the Vice President and Head of Cash Management, ADCB and has over 21 years of banking experience, primarily in transaction banking and banking technology. In his most recent assignment, spanning two years, Isaac was heading the MENA regional corporate sales for cash management and trade at Deutsche Bank in Dubai. Prior to this he was with Standard Chartered Bank in Singapore and Dubai with the transaction banking team. Isaac has experience managing clients in a service and sales capacity and has set up and managed premier client service teams at Standard Chartered and Deutsche Bank during his assignments there. He has a Masters in Electrical Engineering and MBA in Finance from the US.

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Pricing Cover story <<<

Know your enemy

THE ART OF

This is the first article in a two-part series that’ll be your pricing survival guide when you pit products against the competition. John Lincoln, Vice-President - Enterprise Marketing, du, talks about knowing your enemy, understanding the market structure, and pricing objectives and strategies, and next month he will tell us exactly how to avoid or engage in a price war. 20

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JUNE 2011

There’s a lot of information available on pricing, price wars and war gaming, and there has also been a lot written on the strategies and tactics required to avoid or deal with a price war. However, most of this information is in the context of large businesses that are often well-funded and have professional managers, who have the requisite tools and capabilities to deal with a price war. There isn’t much help for small businesses. While it’s true that the guiding principles are the same for all “for profit” companies, but some of the solutions are not apt for small businesses. Before anything else, it is important for SMEs to carry out the required groundwork and understand their industry structure, market trends, and define and develop a purposeful pricing objective. Only then can they determine their pricing strategy, let alone deal with or avoid engaging in a price war.

Strategic context of pricing I have often wondered about how much thought SME owners and marketers have given to their pricing strategy. Pricing strategically is a core requirement that will determine the long-term sustainability of a small business. It is the purse strings of any company. You mess with it and you are doomed! Most small businesses that I have interviewed do not consider aspects beyond cost plus pricing to price their goods and services. There are multiple tools and frameworks that an SME owner or marketer can deploy to sustain and win in the market place. Before we get into the different pricing frameworks, strategies and tactics to deal with a price war, it is important to consider a small

Pricing

businesses’ position in the market place, relative to the overall market.

Market structure: Entry barriers In discussing real world competition which most small businesses encounter daily, it is important to first focus and truly understand the market structure. Market structure in essence is the number of companies in the market and the overall barrier to entry for others to enter your space. For example, no small business can realistically aspire to be a utility or telecom operator as the initial investments are untenable and beyond the reach of most SMEs. In addition, meeting government and regulatory requirements requires investment in a battery of lawyers and regulatory experts. Additionally, hiring professional managers competent in the relevant technology or commercial aspects of the industry are certainly insurmountable for a small business investor. Of course, most SMEs are smart and will not venture into such an endeavour. I am only attempting to illustrate an extreme example of what an entry barrier truly means. If the entry barrier is low, then the prospects for long-term profits are low as well. So remember that when you develop your plan; keep in mind that there are many others who can enter and disrupt the profits in your market space.

Measuring industry structure First, here are some basics that small business owners must be aware of – perfect competition with an infinite number of companies and a monopoly are polar opposites. Monopolistic completion and oligopoly lie between these two extremes. Monopolistic competition is a market structure in which there are many businesses selling differentiated products. Oligopoly is a market structure in which there are a few interdependent firms.

If the entry barrier is low, then the prospects for long-term profits are low as well. So remember that when you develop your plan; keep in mind that there are many others who can enter and disrupt the profits in your market space

Most global industry structures, where small businesses operate, fall almost entirely between monopolistic competition and oligopoly — perfectly competitive and monopolistic industries are few and are nearly nonexistent. Marketers in large companies often use one of two methods to measure the industry structure. They are the concentration ratio and The Herfindahl index. The concentration ratio: This is the percentage of industry output that a specific number of the largest companies have. The most commonly used concentration ratio is the four companies’ concentration ratio. The higher the ratio, the closer the industry structure will be to an oligopolistic or monopolistic type of market structure. The Herfindahl index: This is an alternative method used by marketers to classify the competitiveness of an industry. It is calculated by adding the squared value of the market shares of all firms in the industry. I personally prefer this method. There are two advantages of the Herfindahl index – it takes into account all companies in an industry, as well as gives extra weight to a single company that has an especially large market share. Also, the Herfindahl Index is the method used by the US Justice Department for allowing or disallowing mergers to take place. If the index is less than 1,000, the industry is considered competitive, whereby allowing a merger is actively considered.

The relevance of industry structure By now you must be wondering why all this is important. Classifying the industry structure is important because structure affects a company’s behaviour. The greater the number of sellers, the more the likelihood that the industry structure in which a small business operates in is competitive. The number of businesses in an industry plays a role in determining whether small businesses explicitly JUNE 2011

take other companies’ actions into account. In reality though, when there are many sellers as in monopolistic competition, they do not take into account their competitors’ reactions. If you are running a retail store or restaurant, this might not be very important for you. However, in the UAE and the Middle East region in general, there are many traders and distributors for large manufacturers or technology companies ranging from cell phones, computers, servers to sophisticated telepresence and medical equipment. In addition, there are many boutique management and technology consulting companies competing with well-known global brands. I am sure that businesses competing in these market spaces could see the relevance of really understanding their industry structure.

A word on monopolistic competition By now you must also be wondering why a hyper-competitive industry structure is called monopolistic competition. It seems so counter intuitive. It is so, because the “many sellers” characteristic gives monopolistic competition it’s competitive aspect. The need and capability for business proposition differentiation gives monopolistic competition its monopolistic aspect. The relevance to SMEs is that they should ensure that their proposition is truly differentiated and these unique value propositions should be communicated in the market. This is a fundamental rule for any small business. Most operate in an environment where the entry barrier is very low and where there are many sellers in the market. In such a scenario, if there is no unique value proposition or if it is not communicated, the business will struggle.

Pricing objectives and strategies Before a small business dwells into the different pricing aspects, it is SME ADVISOR MIDDLE EAST

Pricing

important to truly reflect on the real objectives of a pricing approach in the market. There could be many reasons for such a pricing move. Before we summarise the different profit objectives, it is important for an SME to consider the following:

What are the market trends? Factors and questions that an SME should consider are: Is there a flood of new propositions or model introductions in the market? Is there an increased availability of bargain and generic brands in the market? Are your competitors using price cutting as a strategy to maintain or regain market share? Is there a general decline in consumer confidence (such as after political upheavals, terrorist attacks, stock market crash, and so on)? What stage is your proposition in the product life cycle? Is it matured? What is the competitive intensity in your market space? What is your distribution strategy? Direct, indirect or hybrid sales approach? What is your promotion or communications strategy? What is the perceived quality of your proposition relative to your competitors?

Pricing objectives Only after truly understanding their industry structure and the market trends, should SMEs consider and define their profit objectives. These questions can help determine the intentional pricing objectives: Survival mode: Are you just trying to survive to generate enough cash flow to remain in business? Maintaining status quo: Are you trying to maintain the status quo in the hope of avoiding a price war? Cost recovery: Are you seeking only partial cost recovery? Quality leadership: Are you seeking to signal a higher quality of the proposition? Profits: Are you seeking to maximise

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current profits? Revenues: Are you seeking to maximise current revenues and not the profits? Quantity: Are you seeking to maximise quantity to recover longterm costs? Profit margins: Are you seeking to maximise profit margins knowing well the impact it has on the demand for products and services? Now that you have a reasonable view of the industry structure, the prevailing trends in the market and a purposeful pricing objective, it is time to reflect on what your strategic pricing approach would be.

Strategic pricing As also explained by my fellow columnist Dr. Mahate in the subsequent article on pricing for exporters, there are many different types of pricing strategies that an SME can follow; some are more prevalent than others. Here are a few of them:

Penetration pricing The strategic objective of this type of pricing is to increase sales and gain momentum in the market soon. For example, a small business distributor of consumer electronics goods might use this strategy to pre-empt a competitor launch which is some time away. Skimming pricing The small business owner can set an initial high price, and then gradually lower the price to make the proposition available to a wider market. The strategic objective for a skimming approach is to skim profits off the market layer by layer. If you are a small software games developer or a distributor of toys or consumer electronics, skimming might be an excellent approach, if the main festive season buying is some time away. Competition pricing The objective of this is to set a price in comparison with the competitors. Needless to say, a small business has three options and these are to price lower, price the same, or price higher. JUNE 2011

Product line pricing The strategic objective of this is to price different products within the same product range at different price points. Examples of this would include hotel room rates.

Are you seeking to maximise current profits? Are you seeking to maximise current revenues and not the profits? Are you seeking to maximise quantity to recover longterm costs?

Bundle pricing The SME can bundle a group of products at a reduced price. Common methods are to buy one and get one free. Other creative methods could include offering a set menu for restaurants, bundling complementary products like movie tickets and pop corn, and so on. Bucket pricing In this pricing method, SMEs can offer large volumes or buckets of the same proposition for a fixed period commitment. A small business restaurant owner, hotelier, or a transportation company, can offer bucket pricing for a fixed fee on a monthly or annual basis. Psychological pricing When pricing their propositions, SMEs should consider the psychology of price and its positioning within the market place. This is the reason why you see a lot of $1.99 or $999 and so forth type of pricing all around. Premium pricing The strategy for this pricing approach is to set a price high to reflect the exclusiveness or the premium quality of the product. This is commonly used by retailers and sellers of premium goods and services. Optional pricing In this approach, the SME can sell optional goods or services along with a main proposition. Cost based pricing In this pricing approach, the SME takes into account the cost of sales and distribution and then applies a mark-up for the intended profit, before deciding on a final pricing framework.

Pricing

Comparison of perceived values

Cost plus pricing The objective of this is to add a percentage to costs as a profit margin. Loyalty based pricing In this approach, the proposition offered uses all of the above pricing methods, and then prices are discounted to entice commitment and therefore loyalty over a commitment period.

A note on the people who price

John Lincoln I recently met the owner of a company selling software over the Internet to SMEs. Prior to this endeavour, this gentleman was a very senior manager in a well-known global software giant. What baffled me the most was his pricing strategy. In my mind, he truly lacked an understanding of his customers’ needs and what they could afford. More importantly, he failed to understand that his potential customers did not have the necessary cash flow for such upfront investments and that his only value proposition, relative to his other competitors in the market, was offering his customers an OPEX model versus a CAPEX model. Most SMEs often mistakenly request the good folks from the finance department to handle pricing for their propositions. This is a grave mistake. The pricing strategy and the tactics have to be set by someone who understands customer needs, perceptions, market conditions, and has a well-rounded view of the business. As pricing is the purse string of your business, it is important that there be checks and balances. This means any strategy will, of course, need to be validated and approved by independent functions like finance or accounting. However, the big picture must be kept in mind.

Perceived value Small businesses need to know that most customers buy their propositions not for their features (for example, a phone) or their specific functionalities (camera pixels), but rather for the perceived benefits that the propositions delivers. Features and functions, which are often the focus of product design specifications, are simply the packaging for delivering the benefits that are desired by customers. Customer perceptions are critically important. A proposition may pass the required functional criteria, but a small business only “gets credit” if the customers recognise (that is perceive) that the product delivers the benefits. Similarly, potential customers make purchase decisions considering a proposition’s perceived price. That is, how much a customer thinks that a product will cost them? These perceptions may or may not accurately reflect reality. Keep in mind that the perceived value is either the difference between the perceived benefits that a product delivers and its perceived price, or the ratio of the perceived benefits and the perceived price.

Most SMEs often mistakenly request the good folks from the finance department to handle pricing. This is a grave mistake. The pricing strategy has to be set by someone who understands customer needs, perceptions, market conditions, and has a well-rounded view of the business

JUNE 2011

SMEs should know that customers often make a choice not to pay more than a certain price. They make these choices by comparing across a set of references explicitly or implicitly for unscientific perceptual benchmarking (for example, this type of product should cost roughly this amount, say, an Apple iPad versus a Blackberry Playbook). Customers also compare among substitutable products that may be directly or indirectly competitive. For example, Colgate and Close Up toothpastes are directly competitive. Colgate toothpaste and mouthwash are indirectly competitive (since both serve a different purpose and are dental hygiene products – unless someone only uses mouthwash for their dental hygiene, and I’d hate to dwell on that!).

ABOUT: John Lincoln has over 20 years telecommunications experience in the USA, Japan, Europe, India, Dubai, Malaysia, Latin America and various other countries. He has extensive senior expertise in international telecommunications sales, marketing, business development and customer service delivery. John also has executive experience with general management, marketing, P&L, product development and revenue management responsibilities in both consumer and enterprise segments for both the fixed and mobile sectors. In addition John has an impressive operational and management portfolio of established proven expertise in incremental business value creation and management of large multi-cultural teams in Vodafone Global in the UK, Japan Telecom in Tokyo, AirTouch and Pacific Bell (now AT&T) in San Francisco and Tokyo, Airtel in Delhi and other telecom and technology companies. Additionally he has extensive large scale business development, M&A and operational project experience across the USA, Europe, Asia and Latin America. John has an MBA and MS in Telecommunications from the Golden Gate University in San Francisco, California, USA. You can find John’s personal blog at johnlincoln.blog. com. He can be contacted via: john.lincoln@ gmail.com, Twitter: @lincolnjc.

SME ADVISOR MIDDLE EAST

Pricing Export markets <<<

Name your price What should you charge in foreign markets? This decision is based on more than simply converting your domestic price into another currency, advises Dr. Ashraf Mahate, Head of Export Market Intelligence at Dubai Exports, and Vice Chair of the Economic Policy Committee, Dubai Economic Department Over the last few months we have been looking at how SMEs can start to export. One important aspect of the process is the ability to

SME ADVISOR MIDDLE EAST

JUNE 2011

correctly price oneâ&#x20AC;&#x2122;s product or service in the foreign market. All too often firms simply convert their domestic price into the foreign currency. It is important to remember that

foreign products compete with domestically produced goods and therefore price is an important consideration. This is more so the case where consumers are price sensitive.

Pricing

Even though consumers may be willing to pay a premium for quality products, it may not be as large as the home country. Therefore, the importance of accurate export pricing cannot be overemphasised as any error in this area can lead to either losing foreign orders or the possibility of making losses. Moreover, it can be an important tool for promoting sales and competing in the international arena. The important factors that determine the foreign price of a good or service are cost, demand and competition. In the case of cost, one needs to ensure that all costs including those incurred in the foreign country are incorporated in the final price. At the same time exporters need to be aware that their product or service is competing with other products and services from all over the world. Therefore, the price has to be realistic while ensuring that the exporter receives an adequate return for conducting business in a foreign location. There is no fixed simple formula for successful export pricing. It differs from exporter to exporter depending upon the good or service in question and the level of customer loyalty that it can attract. Some of the factors that increase customer loyalty and hence allow the exporter to charge a higher price include the following: Range of products offered Prompt deliveries and continuity in supplies After-sales service Product differentiation Frequency of purchases Presumed relationships

Factors that reduce the price: Export assistance or some form of government assistance, for example export subsidy Refund or exemption from excise duty Cash or advance payments Benefits from economies of scale Effective operation management Effective logistic management

Common methods of pricing are:

Dr. Ashraf Mahate

between quality and price Intangible value of the product such as brand image Credit offered Preference or prejudice for products originating from a particular source Aggressive marketing and sales promotion Prompt acceptance and settlements of claims Cost of research and development

Factors that increase the price: Special packing, marking and labelling Additional supervision and effort Transportation cost Cost of export procedures Marketing cost Insurance cost Currency exchange rate movement Customs clearance and local taxes in targeted country Storage and distribution cost in targeted country

Penetration pricing is a variant of predatory pricing where the price is set at a low level in order to obtain a foothold in the foreign market. But, unlike it, this technique does not seek to eliminate competitors

JUNE 2011

Cost plus approach Under this method the exporter calculates the total cost of producing a good or service including transport, insurance, custom duties and so on, if required under the contract, and then adds a percentage as the profit on the sale. The additional component (that is the profit) depends on the particular market and product. In most cases a new exporter can use the general profit rates of competitors as a starting point. The problem with this method is that it can lead to an uncompetitive market price especially in a highly congested sector. Marginal pricing Under marginal or differential pricing, the exporter is only concerned with the additional cost of producing the good or service. This method of pricing arrives at the direct cost of producing the good or service and the fixed costs are apportioned to the total volume of output. The key advantage of this method of pricing is that it leads to a more competitive export price especially for new entrants. Predatory pricing This method of pricing is where the exporter sells the product or service at such a low price with a view to drive out SME ADVISOR MIDDLE EAST

Pricing

competitors or create barriers to entry so that new entrants cannot come into the market without making a loss. Competition based pricing This is where the new entrant uses the price charged by competitors to base its own price. This method assumes that there is little, if any, difference between the exporter products and those of its competitors. Penetration pricing This is a variant of predatory pricing where the price is set at a low level in order to obtain a foothold in the foreign market. Though, unlike it, this technique does not seek to eliminate competitors but simply penetrate the foreign market. Psychological pricing This method of pricing seeks to exploit the positive aspects of human nature in order to set a price. For example, a price of 0.99 is psychologically better than 1.00 because the consumer perceives it in a more positive manner than the latter. Similarly, a higher price may in some markets imply that the product is of a better quality. Dynamic pricing This method is largely employed in Internet based markets whereby the price changes many times an hour, depending on the level of consumer interest and the available supply. Price discrimination This is where the market is separated into a number of smaller segments and each one is charged a different price based on their willingness to pay. Price is a critical factor, but does not by itself tilt the buying decision. Some buyers may make a trade-off between quality and price. Pricing

SME ADVISOR MIDDLE EAST

Normally, customers have in mind a combination whereby the price is only one of the factors under consideration. Therefore, it is important for exporters to look at what combination of factors influence the buying decision

strategy should also take into account the specific market segment. Once the product and price are right, the buyer looks at the exporterâ&#x20AC;&#x2122;s ability to perform well. Realistic delivery schedules and having the confidence to meet them will go a long way in securing export orders. The guaranteed quality of a product, its conformity with specific international standards, and proper packaging, labelling and markings, can be a major selling factor. High quality also affects after-sales service. Normally, customers have in mind a combination whereby the price is only one of the factors under consideration. Therefore, it is important for exporters to look at what combination of factors influence the buying decision. Some of the important factors are:

Product related Quality and guarantees Technical specifications Design and drawings Patent and proprietary considerations Environmental aspects Packaging, labelling and markings Price-related Price Escalation clause, if any Terms of payment Performance-related Delivery schedules Continuity of supplies Transportation arrangements Spares and after-sales service Warranties Confidentiality Promotion variables Advertising Sales promotion Personal selling Publicity

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Place variables Channels of distribution Outlet location Sales regions or territories Delivery and logistics At the end of the day the exporter may need to try different combinations of the factors listed above until the correct formula is arrived at. This is one reason why successful exporters tend to test-run their products or services during an exhibition or trade fair where they can obtain immediate feedback. In fact, the best way to gauge a particular market and understand the pricing dynamics is through a market visit to the country concerned.

ABOUT: Dr. Ashraf Mahate is the Head of Export Market Intelligence at Dubai Exports (formerly known as the Dubai Export Development Corporation), which is an agency of the Dubai Economic Department. Dr. Mahate is also the Vice Chair of the Economic Policy Committee with the Dubai Economic Department. He has written a number of journal articles, chapters in books and edited books in the areas of economics, finance and banking. He has also presented papers at major international conferences. Dr. Mahate has provided extensive consultancy services to various organisations in the areas of banking, economics and finance. He has been a director of a number of companies including a venture capital company and a private equity fund. Dr. Mahate received his doctorate from Cass City University Business School in London (UK) which was ranked by the Financial Times newspaper as the 12th best university in the world for finance. He read Economics at University College London, followed by a Masters in International Economics and Banking at the University of Wales in Cardiff. Dr. Mahate is a professional educator and received his training at the Institute of Education (University of London). He is a member of the Chartered Institute of Managers (UK) and a Member of the Institute of Commercial Management (UK). He is also a member of the Association of Certified AntiMoney Laundering Specialists (ACAMS).

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Management PERFORMANCE <<<

Steering your business in the right direction What do a car and a business have in common? In their capacity to perform, they both depend upon an engine, a driver and passengers. What impact from your passengers are you encouraging and how is your driver maximising efficiency, asks Debbie Nicol, Principal Consultant and owner of business en motion.

All businesses start off somewhere, some by accident, and others through dedicated and structured research, planning and implementation. From the smallest to the biggest, they all have some element of organisational design, leadership and productivity, either intentionally or otherwise.

An organisation’s design as the engine Organisational design is the engine of the business. It is where the energy, the efficiencies, the unique operational catalysts reside. Designing an organisation sounds scientific, implying: • Parts being created • Prototypes being built and • Results being tested. SME’s may not be aware of doing this, yet in some form do so, most in a rudimentary fashion. Could

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simple awareness within SME’s be a catalyst to improve in this area? The parts which a business depends on for energy and productivity include structure, systems, processes, culture, performance measures and people. Systems of handling finance, processes of sales, the corporate culture and way of doing things, the indicators that communicate degree of success, the human influence interacting with these, within some type of framework, are a few examples of the parts of any business, ranging from the oneperson business upwards. None of them should be spare parts sitting on a shelf but, instead, integrated and central to operations. Designers in the fashion world are highly paid as a reward for aesthetic qualities they bring to apparel, just as designers of buildings, ergonomic furniture, cars and infrastructures bring JUNE 2011

An organisation’s leadership represents the driver, the one who knows where it should be heading, chooses the path to take and keeps an eye on navigational issues and bumps along the way

efficiencies to their respective items. Parts are created and placed together in a myriad of possibilities to gain the greatest efficiency possible. In fashion that may be a certain look, in construction it may be cost of operation, and in business it can be the ability to produce. Yet, how many of us even consider this possibility in business as an essential component, but rather grow and grow organically? We add a person here, a function there and that is our organisation. Is it really organised to maximise production, bringing energy and results? Does it match what you require or simply copy another company’s structure? Do your systems serve your purpose or copy another set? Do your processes cater for your unique inputs and outputs or simply copy the norm? Does your culture wear an individual feel or does it prioritise that which is the trend of all others? Do your

Management

performance measures link and encourage desired behaviours, connecting and reinforcing your business priorities? Do your people know how and why they are placed where they are?

An organisation’s leadership as the driver An organisation’s leadership represents the driver, the one who knows where it should be heading, chooses the path to take (possibly in consultation with the passengers) and keeps an eye on navigational issues and bumps along the way. This translates into ensuring that the engine is serving the organisation well and empowering the business results. The components of leadership can include the vision and mission, the values and guiding principles, the strategies and objectives and can exist across departmental functions as well as at the helm. Without the driver understanding mechanics, they simply won’t be able to get the best out of the

Rather than positive customer experiences, increased market reputation, increased profit margins and positive contribution to society, there will be stress breaks, breakdowns and time out for repairs. It may have been a six-cylinder, but within a short time span, its capacity has dwindled due to poor driving skills

engine. Similarly, without the leaders knowing and understanding that which they are there for, recognising the impact of their footprint on the pedal, or even the efficiency point of their organisation, what hope will there be for the business to perform to its maximum. Rather than positive customer experiences, increased market reputation, increased profit margins and positive contribution to society, there will be stress breaks, breakdowns and time out for repairs. It may have been a sixcylinder, but within a short time span, its capacity has dwindled due to poor driving skills.

An organisation’s people as the passengers The people of any organisation represent passengers, yet not those who passively sit waiting to be taken for a ride. They have capabilities and interests to be co-creators of the journey, and have suggestions in how to maximise the engines’ use, when to upgrade the petrol grade, and why the leadership could benefit from a tweak here. The people are the very agents to help, or hinder, the engine and the driver. How is the organisation assisting their efficiency? Are they playing to their strengths? Does your business involve the people, communicate and assist their performance, and listen to their feedback? Reflection In your vehicle’s servicing department, how often is your vehicle renewed, adapted and transformed? To what degree is your organisation serving you? Is it time for a service or simply is there a need for a trade-in?

Inception How does the framework of my organisation serve its purpose? How are the parts customised to the model of business our customers desire? How often are the parts upgraded, renewed, adapted and transformed? How does the leadership of our organisation enable both the design and the people? How often and with whom does the organisation do a service checkup? What is the ultimate indicator that your organisation is performing to its greatest potential? Write in In 50 words or less, what’s one way to service your organisation to yield great results? Write to ketaki@ cpidubai.com win a copy of Debbie’s latest book, Corporate Embers’ – business-promoting insights.

ABOUT: Debbie Nicol, aka “the enablist”, principal consultant and owner of business en motion assists organisations and leaders to move ahead through change. She works with organisational development, change management, corporate cultures and learning strategies. For more information visit www.businessenmotion.com

JUNE 2011

SME ADVISOR MIDDLE EAST

Management Workplace diversity

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ONE BIG HAPPY FAMILY

Profit and non-profit organisations need diversity to become more creative and open to change. Maximising and capitalising on workplace diversity has become an important issue for management IN THIS REGION, says Fahad Abdullah Al Ameri, Head, Human Resources & Public Relations, Al-Qahtani Pipe Coating Industries. The world’s increasing globalisation requires more interaction among people from diverse cultures, beliefs, and backgrounds than ever before. People no longer live and work in an insular marketplace; they are now part of a worldwide economy with competition coming from nearly every continent. The challenge of creating a multicultural, diverse organisation is becoming an increasingly prominent concern for chief executive officers (CEOs). Diversity management initiatives are long-term and strategic in focus; they strive not only to recruit but to actively develop, promote, and capitalise on the different skills and perspectives of minority employees, and involve fundamental organisational change. Cox (2001) suggests that “multicultural organisations” are the most flexible firms, actively integrating minorities into the company structure and building an appreciation among employees for individual differences. These types of firms tend to consider diversity in an inclusive manner that encourages unity. Still, diversity in numbers alone (surface diversity) will not be

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likely to contribute to workplace harmony. Diversity must be accepted and integrated into the firm’s social and business fabric. Research by Brock and Sanchez (1996) supports the hypothesis that a diverse environment can increase worker satisfaction only as long as real or perceived discrimination does not exist. But by making diversity a priority and increasing the acceptance of differences within the organisation, they suggest firms can increase the commitment of minority employees, which can contribute positively to minority retention and personnel development. This is the heart and essence of this investigation. Gulf countries which have a wide spread of industries, primarily oil refinery and production, have been a hub of employment for many people. Expatriates have slowly moved to the Middle East searching for better opportunities. In a survey carried out from 1995 to 2007, Gulf countries were recorded as nations that required the most number of workers from around the world. In fact, this phenomenon had helped many third world countries to provide working opportunities to its citizens. JUNE 2011

Diversity in numbers alone Shouldwill a not be likely to salesperson contribute be looking to at workplace e-mails or harmony. at their sales Diversity pipeline, must be and talking accepted and to other integrated departments into the or talking to firm’s social and business customers? fabric

Saudi Arabia, as one of the leading countries in this region, had also faced the consequences of employing a diverse range of people to answer the labour call. Reports state that 80% of its labour forces across all industries are now foreign nationals. Many companies are spending huge amounts to provide entry and working visas in order to entice workers. Manpower requirements range from technical to mechanical and including labourers recruited from different countries, based on their expertise and specialisation. With the advent of technology and with the demand of its client, companies have diversified their business nature and orientation, venturing into white and blue collar jobs, which allowed it to employ different people of different skills, expertise and specialisation, in order to attend to clients’ requirements in the most efficient way. With this, diverse workforces exist in these niches and therefore a multi-faceted and strong management structure is necessary to hold, retain and motivate employees.

Management

Fahad Abdullah Al Ameri

The challenge It can be clearly understood that diversity management is faced with the dilemmas on four different aspects, namely: leadership traits, peer relationship, behaviour and selection practices. Leadership traits of middle managers are a key factor to the success of any company, as it inevitably directs activities. A leader who does not possess the key elements of good leadership may pass down poor directives, which can result in mismanagement and staff becoming jeopardised. Prudent decision-making is one trait that should emanate from a leader – poor decision making processes put all those who are involved in the organisation in danger. In a larger context, employees’ behaviour is a result of how management handle the work. Good or acceptable behaviour among employees emanates from solid leadership, and with this allegiance tends to follow with time. A “pro-people” approach rather

than a “system orientated” approach will also ensure that relationships between management and employees are solidified. In a diversified culture, various nationalities are working side-by-side in spite of many misunderstandings and ignorant preconceptions which may appear from timeto-time. Differences in religion, language, beliefs and practices are always present and it is the sign of a strong leader who can forge these differences and synchronise employees under one common goal. It is best therefore to consider that selection practices be given attention to alleviate problems in the future. Human resource management may find it necessary to set higher standards of criteria and qualifications to hire and employ diversified employees who are flexible and adoptable in an unstable environment and to “fit in” the best employee in a suitable work environment.

The solution

It’s inherent for a business to solve and improve the existing environment. A wide array of possibilities for intervention will help to build a trust and a healthy work environment and convenient organisational structure. Upper management should encourage board attendance at any organisational diversity events. This could be realised by encouraging

It is best to create a committee that will map out an action plan for high performing or high potential minorities. These can include a discussion on their career interests, the skills and experiences they need to progress, who is mentoring them, and what internal or external contacts they need for building relationships ABOUT: Fahad Abdullah Al Ameri, is currently Head, Human Resources & Public Relations, Al-Qahtani Pipe Coating Industries. He is also presently in charge of Public Relations & Media for Abdel Hadi Abdullah Al Qahatni & Sons Group of Companies, where he develops, coordinates, and directs public relations activities. Before these positions, he held a position as a teacher in the Ministry of Education, as well as with the Ministry of Post & Telecom in KSA. He has also held various managerial positions for operations involving preopenings of various hotels in the region, including the FAMA Holding Group (Sunset Beach Resort) and Al-Khobar Holiday Inn. Fahad has an MBA from AMA International University (Bahrain), which specialised in Human Resource Management. Fahad can be contacted at diversity@windowslive.com

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diverse board leadership (chair, other officers, and committee heads) and help find ways and means to engage the managers or supervisors and employees in diversity training or conferences. We have to remember that the world of work is fast changing and so keeping ourselves abreast with these changes will help keep things in order. In the same way, it is best to create a committee that will map out an action plan for ascension in the organisation for high performing or high potential minorities. These can include, but are not exclusive to: a discussion on their career interests, the skills and experiences they need to progress in the organisation and how they will obtain those skills and experiences; who is mentoring them, and what internal or external contacts they need for building relationships. Further to this could be the creation of a team of senior managers, inclusive of all lines of business and staff functions, which assists in the development of plans to address obstacles and barriers affecting diversity management. Open communication should be well established among the employees, middle managers and higher management to thresh out problems related to relationship, behaviour, leadership, motivation, advancements and social and emotional dilemmas, to discover strength and weaknesses of the people. This can be facilitated by the human resource office through a well-established, balanced and unprejudiced programme, addressing the needs of the people regardless of their culture, background and ethnicity. Cultural diversity training programmes could also be set for all the employees and managers or supervisors concerned. In a like manner, a seminar or workshop on team building should be frequently conducted and implemented for cohesiveness and unity among the employees. SME ADVISOR MIDDLE EAST

Marketing Targeting media

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Hitting bulls-eye Your pitch might not be exactly what a journalist is looking for, but it might spark off an idea, and helping to inadvertently create ideas will secure you coverage time and time again, says Alan Devereux, Communications Officer for the British Business Group, Dubai and Northern Emirates. What is the best way to pitch to the media? In simple, plain language that shows you understand an angle or a hook that the journalist might find workable. It is important to remember that a story might need three of four quotes. Each pitch also needs to show you understand the consumer of your chosen media, which was in my case a breakfast radio show that talks business. I cannot tell you what to write at it needs to be specific to you but I can show you two examples of pitches I have received. Names have been changed to protect the innocent. Dear Alan, I am attaching a note on ****, a client of ours. It highlights the company and two of its specialised products. In brief, **** is an independent customer care organisation, specialised in supporting service life cycle management programs of global brands in the MEA region. It provides a one-stop, leading edge technology and comprehensive reverse logistics solutions starting from product warranty support and RMA programs to end of life product recovery and recycling solutions.

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**** supports vendors and their partners to make their reverse logistics process a competitive advantage allowing them to focus on their core competency of providing world class products to customers. **** ensures that programs rolled out for vendor partners make customer care a core differentiator as well as a revenue and margin driver with a strong focus on ROI and ROC (Return on Care). I would hope that you will be in a position to speak to**** And: We sent you news yesterday of (a pizza company) launch in Dubai – it’s one of America’s fastest growing food franchises and they’ve chosen the UAE as their hub for international expansion. Following Sheikh Mohammed’s “we’re back” remark, thought you might be interested in hosting one of the co-founders, ****, on the Business Breakfast next week who will be visiting from New Orleans. I very much like that the first pitch, which begins with: In brief! Ask yourself how happy you would be if the PR company that wrote the first pitch communicated your company and product in the JUNE 2011

When pitching a story or news item to a general media try to reread what you send. If a ten year old child can understand what you have written you are onto a winner

same way. It is two full paragraphs of big words and nonsense. I would always suggest getting to the point in the first paragraph – the only reason this got a full read was that it was so bad! The second pitch is also pretty poor but Alan Devereux it does illustrate an important point. The PR that sent it had seen a potential opportunity for his/her client to be interviewed, and, as it happened, we did speak to the local business development chap so in a roundabout way the pitch was a success. When pitching a story or news item to a general media (as opposed to a specialist media) try to reread what you send. If a ten year old child can understand what you have written you are onto a winner. If every third word has eight letters you should probably rewrite.

ABOUT: Alan Devereux is a husband, a father, and Communications Officer for the British Business Group, Dubai and Northern Emirates, and he can be contacted at info@britbiz-uae.com or http:// ae.linkedin.com/in/alandevereux.

Sales RECYCLe LOST OPPORTUNITIES

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BLAST FROM THE PAST As soon as a potential or current customer rejects a product or service offer, it can become all doom and gloom for the supplier. Lots of negative thoughts enter the sales persons head and they are often convinced that there is no point in remaining in contact. how very wrong they are, says Peter Heredia, Managing Director of Max Sales Solutions.

Nobody can convince every customer and many of your current customers may be convinced that the grass is greener on the other side and may want to change. These things happen but how you handle these events could make the difference in how successful you are as a company in the future. What can you do? Here are some simple steps to follow to ensure that that, within

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two years, at least 80% of your new business comes from customers who have rejected your offers.

wide open for them to feel comfortable about becoming a customer of yours one day â&#x20AC;&#x201C; be professional.

Five step process for generating 80% of your future new business

Step 2 Agree to stay in touch. The time frame could range from 1 -12 months depending on your industry and situation. Keep in touch regularly for any support that is needed. Never gloat if they have made a wrong decision.

Step 1 As soon as you are aware of the bad news, understand the reason for the decision. Ensure you leave the door JUNE 2011

Sales significantly greater chance of a customer using your products and services in the future.

Benefits from recycling lost opportunities

Peter Heredia

Step 3 Set a follow-up date in your diary and keep to it. The easiest way to manage the situation is through a clear sales process where you keep a stage in your pipeline dedicated to future opportunities. Step 4 Fulfil your commitment with the follow-up and always attempt to be creative as to why you should arrange another meeting (new products, improved services, special offers) and so on. Step 5 Set another date in the future to follow up again and continue to complete the last three steps until they become a customer. So what are you achieving? Using this simple, but effective process, your customers are twice as likely to buy your product or service in the future, compared to opportunities that are ignored. First of all, if managed correctly, recycling lost opportunities will not take up too much time. However, the pay-off is that you have a

First of all, if managed correctly, recycling lost opportunities will not take up too much time. However, the pay-off is that you have a significantly greater chance of a customer using your products and services in the future

If something goes wrong with their current supplier you will always be at the front of their mind to contact as a replacement. You are continually building the relationship and customers buy from people they know and like. You are keeping good records of all qualified opportunities to follow up on, even if there is a change of sales personnel at you organisation. Within two years your effort on generating leads will reduce dramatically as your market intelligence sits in your sales pipeline stage for future opportunities. You are creating a very professional image within the eyes of your customers by your reliability. How can positively managing old

and lost opportunities impact on your business? Hereâ&#x20AC;&#x2122;s a simple case study below of a company with five sales people who each generate ten new sales leads per month with a 10% hit rate. If a company were to introduce a lead recycling process every six months and the average value of a sale is AED 10,000. The results would be:

ABOUT: Peter Heredia is the Managing Director of Max Sales Solutions. He has worked with sales teams around the globe for more than two decades and has worked in the Middle East for the last ten years. If you would like to talk to Peter about your sales team then please contact him on peter@maxsalesolutions.com

JUNE 2011

SME ADVISOR MIDDLE EAST

Legal Going global <<<

PREPARE FOR BATTLE The success of taking your business operations abroad can often hinge on careful planning – often it’s the smaller details that we overlook while trying to get the larger issues off the ground. With this is mind Geethalakshimi. R, CEO and Managing Partner, aba Business Attorneys, has provided a checklist which every SME should tick off before going international.

First things first

1. Why should we think about going international? 2. What size do I need to be to go international? 3. What are the key success factors for companies entering the international market? 4. How much of our sales should come from international dealings?

5. How much should I budget for an international launch? 6. How long should it take for an international effort to generate revenues? 7. Will we need extra staff to support an international effort? 8. What do international prospects look for when they are buying a product? 9. Are there any international challenges that I need to be aware of?

Market issues

10. What are the ten largest international markets? 11. What are the best international markets to go after? 12. If we have a limited budget, shouldn’t we go after the biggest markets first? 13. How many markets should we go after? 14. Are there any international markets that we should avoid? 15. Are territories defined by country boundaries or are

SME ADVISOR MIDDLE EAST

JUNE 2011

there regional definitions? (as in the case of the European Union or GCC)

Channel issues

16. What are the different channel options available in going international? 17. When should we try and sell directly from home? 18. When should I use international distributors? 19. When should I have a reseller channel? 20. When should we set-up our own office(s) internationally? 21. We want to have our own offices, but we can’t afford to do it today. Is there a way for us to have our cake and eat it too? 22. What does an international partner look for when evaluating a vendor?

23. Should I have my pricing on the Web? 24. If we develop a channel, can we still sell direct through our Website? 25. Is selling direct via the Web a better option than building a channel? 26. What are some of the barriers to selling from our Website?

Product translation and localisation

27. Does our product need to be translated and localised before we go international? 28. What is the difference between translation and localisation? 29. What if we just want to translate the product? What is involved? 30. What are the different ways to handle the translation? 31. What else is involved if we want to “localise” our product? 32. Should we have an international reseller handle our product translation? 33. Do we have to translate all of our marketing materials for every country?

Legal

82. What if resellers don’t sell more of our products? 83. What should we require in a monthly report? 84. What type of marketing materials will I need to supply resellers? 85. How do I find information on local resources such as mailing lists?

Intellectual property protection

34. What exactly is a trademark? 35. How are trademarks established? 36. How and why do trademark disputes arise? 37. What is involved in registering a trademark? 38. Do we have to register our trademarks, copyrights or patents in every country? 39. What is the difference between TM, SM and ®? 40. Which countries provide the best anti-piracy protection? 41. Which countries provide the least anti-piracy protection? 42. What are reasonable ways for us to protect our product’s identity? 43. What are the best ways to get paid for international orders? 44. Should we grant credit terms to our resellers? 45. Should we charge the reseller an up-front fee? 46. What is the discount level we will have to offer to international resellers? 47. How are maintenance fees usually handled in different territories? 48. Should pricing be in US dollars or the local currency? 49. Will I have to worry about withholding taxes, and if so, how do they work? 50. What do we have to take into consideration relative to ordering shipping and returns?

Setting up a subsidiary

51. What are the advantages of setting up a company-owned subsidiary? 52. What are the disadvantages? 53. Is there a point at which it makes sense to set up a subsidiary? 54. How much should we

Providing support

Geethalakshimi. R

budget for a small office? 55. What else should we consider before deciding to set up a subsidiary? 56. If we want to set up a European/American main office, are some countries better than others? 57. Do these countries offer investment incentives?

Recruiting a channel

58. Where can I find good prospects? 59. What should I do when an interested reseller contacts us unsolicited? 60. How do we handle resellers that demand market exclusivity? 61. How do we handle crossborder sales, with multiple resellers involved? 62. How do I avoid getting locked out of a territory by someone who isn’t performing? 63. How do I determine if a territory has too many or too few channel partners? 64. Are there countries where we can have multiple resellers? 65. How do we qualify prospective resellers? 66. What is the best way to make contact with people? 67. Is there an ideal size of reseller organisation?

68. Should I use a reseller application? 69. What are some key qualification criteria?

Legal issues

70. What kind of legal documents do I need in order to do business internationally? 71. Will I have to change my license agreements? 72. Do we really need a comprehensive international reseller agreement? 73. What is a reasonable term (duration) for an agreement? 74. Are exclusivity clauses enforceable? 75. Should we require a noncompete clause? 76. What are the most common reasons for terminating a contract? 77. How do we notify the reseller so that we are protected under the contract? 78. What happens upon termination? 79. What should we use as governing law – our law or their law? 80. When should we send out the reseller contract?

Marketing issues

81. Will it be expensive to support international partners? JUNE 2011

86. Should we have a reseller manual? 87. Will the reseller need any training? 88. How do we provide training to international partners in various countries? 89. What is the best way to handle on-going communications? 90. Should we schedule visits to our resellers? If so how often? 91. What are the most common marketing support and incentive programmes? 92. Should we have reseller conferences? 93. What if things don’t work out? Is it easy to terminate a reseller? 94. How do we best leverage our existing support infrastructure and resources? 95. What is an acceptable level of response time for product support questions? 96. What level of technical support should an international partner provide? 97. What are acceptable terms and conditions for warranties and maintenance? 98. What should we look for in an international manager? 99. What would their responsibilities be within our organisation? 100. Where can we find people with this profile and background? 101. How many resellers can one person manage? SME ADVISOR MIDDLE EAST

Technology for business Operational risk management <<<

Spotting the dangers ahead In today’s business world, operational risk and its eventual management has evolved into a more logical, explicit and systematic process, says Amir Sohrabi, Alliances and Partners, Manager, SAS Middle East.

Operational risk can be defined simply as a risk arising from the execution of a company’s business function. It is not to be confused with a common threat or hindrance but rather should be viewed as an occurrence that can cause a negative impact or effect on your business. Looking at this definition as a baseline, you can also understand that operational risk, or OpRisk in some circles, offers a broad concept in terms of identifying what a risk is. It can be a risk arising from people; a risk caused by systems and processes that are infused into your daily operations; fraud risks; legal or judicial risks, or, an environmental risk. However, the Bank for International Settlements (BASEL) Accords, which is a compilation of recommendations on banking laws and regulations, gives a clearer definition of operational risk; the risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events. According to BASEL, the most important types of operational risk involve breakdowns in

SME ADVISOR MIDDLE EAST

internal controls and corporate governance. These breakdowns can lead to financial losses through error, fraud, or failure to perform in a timely manner or cause the interests of the bank to be compromised in some other way, for example, by its dealers, lending officers or other staff exceeding their authority or conducting business in an unethical or risky manner. Other aspects of operational risk include major failure of information technology systems or events, such as major fires or other disasters. Operational risk management is now being looked at and relied heavily on as a key solution to optimise the performance of a business by understanding the effects of adverse operational losses on our business activities and assets. Regulators’ view of operational risk differs from one area to another; citing different factors like geography, personnel, process and systems utilised. The European region, for example, has introduced a more formal, structured and enterprise-wide operational risk program for local businesses. The US has however, concentrated on more tactical JUNE 2011

initiatives and activities like risk assessment and monitoring, risk mitigation and remediation, measurement, and monitoring within a business line, or around a specific operation. Seen as a fairly new concept, businesses today, regardless of size, can be in any of the four phases of operational risk management. The phases are ignorance, realisation, implementation and nirvana. The first phase covers a company’s non-attentive approach to operational risk. The second phase, showing the realisation of a sound risk management program to help business operations, followed by the third phase, which covers the actual implementation of the program and integrating it with the different concerned departments. The last phase, as the word nirvana implies, demonstrates pure bliss in reaping the rewards of the implementation. SAS Middle East, a provider of business analytics software and services, provides an architecture which helps support the data and methodology requirements, usability criteria and ability to distribute key risk information. The SAS suite package offers a Web-based application that provides strategic modules for assessment; control testing; loss data; risk

Amir Sohrabi

indicators; risk scenarios and issues and action plans. The suite also includes a modelling engine, which facilitates the integration of internal operational risk data with external risk data. Lastly, SAS operational risk solutions allow you to access a database on publicly reported operational losses and which contains 24,000 events across all industries worldwide-providing up to 50 fields of descriptive information for each loss event samples from model risk factors, probabilities and costs. Operational risk is an issue that should not be ignored, but rather something that should be given due attention and process. The implementation and integration of a sound and effective operational risk management solution not only gives today’s businesses the security of smoother operations but also allows them the advantage of being more globally competitive.

Technology for business CRM solutions <<<

Information battleground Businesses today of all sizes, location, and industries have invested heavily in key customer relationship management (CRM) implementations. Despite this heavy influx of investment they have yet to tap its full benefits says Vikram Suri, Managing Director, Middle East and India, Sage Software. There is a large difference between how businesses conduct their marketing activities today as opposed to more than thirty years ago, when the advent of modern computer technology barely scratched the surface. In fact, John Sculley, former president of PepsiCo and CEO of Apple, described the change as, “Dramatically different. It is no longer about market share and how much you can sell it’s also owning the customer relationship.” Very simply put, Sculley embodied the most basic element in keeping businesses at the top of their game; a strong and effective relationship with your customers. The big question is not why the CRM solution is not working to your advantage, but rather, how you can leverage the CRM solution to work for you. Effectively utilising a CRM solution means driving an increase on a business’ demand generation, which can be defined as strong focused marketing programmes aimed at attracting interest towards a company’s products or services. The first step is to do a full re-evaluation of the traditional measurement approach that your business is using.

SME ADVISOR MIDDLE EAST

The second step is to determine what kind of customer is driving the demand for your business. Companies today use CRM solutions to profile or segment their customers to understand their behavioural differences and associated value. This approach can help to determine if their demand efforts are attracting the right mix of customers to maintain or improve future business volume and financial objectives. The last step entails the need to understand how broad-based marketing is affecting your current customers. For some of today’s companies, current customers make up a significant portion of the annual sales volume, but are overlooked as a key factor in evaluating demand spending effectiveness. These companies run branding activities to increase awareness on their products and services but do not evaluate if the impact or attention it generates to the consumer is positive or negative. Fully utilising a CRM solution not only means consolidating all customer information and data that you can collect, but also involves the processing of this information into one, clear, holistic view of the customer. Understanding this JUNE 2011

notion allows customer-facing employees in sales, marketing and customer service to make quick, informed decisions on everything from cross-selling and up-selling opportunities to target marketing strategies and effective problem resolution. Recent analyst studies have shown that companies using CRM software grow their businesses at a rate that is almost three times faster than those that do not, reaping key benefits like; winning more deals by collaborating throughout the sales cycle; create profitable relationships through effective target marketing activities; automate customer-facing business processes; streamline repetitive tasks and gain more visibility into staff, and, business performance to make timely decisions. The implementation of key CRM solutions have also emerged as one of the most tapped into accountable areas for smaller and medium sized businesses. This

is because investing into a CRM solution shows a proven link to the bottom line and is fast becoming a recognised standard for growth businesses across all sectors. Another reason for growing CRM use is that businesses simply cannot afford it. Profound changes in world economies, notably in the increasing trend towards globalisation, virtualisation and transparency, has shown that enterprises become more skilled at managing customers, employees, partners, suppliers and other stakeholders, such as investors. CRM has become an increasingly important element of any successful business, with a key focus towards a customer’s relationship with the company. Picking out the best CRM software for your business means choosing a solution that can keep up with operations, demands and efficiencies; is not costly or complex, and delivers real time positive results. Satisfying customer demands have become key factors to a business’ growth and positioning initiatives.

Vikram Suri

Complete your PC Complete your PC

Technology for business Legal and General Gulf <<<

MAKING IT WORK

Traditionally, acquiring a fast, effective and reliable IT system has been a notorious thorn in the side of many SMEs. However, recent developments have seen a swing in this trend. We take a look at a start up that used a modest budget to successfully integrate BUSINESS WITH the RIGHT IT infrastructure and record excellent growth.

In 2009, Legal and General UK decided to set up a joint venture with Bahrain, based Ahli United Bank (AUB). AUB had a subsidiary in UK and associate offices across the Gulf and provided commercial and investment banking, retail, corporate, treasury offshore and private banking services. Legal and General was looking to expand into the Gulf and during its due diligence of Gulf countries found Bahrain to be most suited for its start up. The country’s central bank was found to have a rigorous rule book that was a good blend of the rigours of Western mature markets but also the flexibility to allow local start-ups to get

SME ADVISOR MIDDLE EAST

In a small setup, especially a start-up like an SME it is much easier to build the business closely with integrated IT

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mobilised through discussion and working with them. That contrasted with the go-by-the book approach in other countries, with a high degree of compliance, leading in some cases to cumbersome and expensive start-up procedures, often involving consultants and a dozen-odd books with regulations. “Getting regulatory approval was not easy but probably easier than other countries” summarises Kevin Gaston, ITO Director, Legal and General Gulf. Now expanded to a 60-employee organisation, Gaston reflects that one of the most important factors for the current stable business and IT support backbone was that he was there right from the beginning. The IT department during the time

of start up was not just another supplier type of department but a key stake holder. At present the key challenge for the company’s IT department is high systems availability, business continuity and disaster recovery. In layman terms this refers to the fact that IT support for Legal and General Gulf, should be able to scale with the business without any slowdown; it should always be available 24 hours x 7 days x 365 days; and should have the ability to run from an alternative facility run in case of physical threat to its business premises. In a small setup, especially a start-up like an SME, it is much easier to build the business closely with integrated IT. In actual fact, Legal and General Gulf’s business model sits on top of the IT solution. Legal and General Gulf uses the physical premises of AUB, the networking infrastructure and the desktop support services of the bank. But the rest of the IT support is outsourced. In this role AUB is just a partner. Other than partial IT support it provides the customer introduction within its premises, and once that is completed its left to Legal and General Gulf to pursue the lead. Gaston’s approach has been to outsource as much of the IT

Technology for business

requirements as feasible. “Our approach was not to build a large IT department. We didn’t have the budget for that sort of setup”. With just a two-employee IT team, the primary requirement from the beginning was to find a hosting service provider for the core business application, with an assured disaster recovery facility. Selecting the provider within Bahrain would have meant possible exposure to local turmoil. Moving outside the island would have increased the vulnerability to possible communication link failures through the high seas. The going view at the time of 2008-2009 was that local suppliers are not available and in all probability would have to be located in UK, US or India. However, Gaston was “positively surprised” to find a suitable hosting service provider within Bahrain and the company was fully operational during the turmoil of the first quarter of 2011. As an SME, the company used another innovative approach for its IT service level agreements (SLA). It has SLA’s with both AUB and the hosting service provider. Nevertheless, since it was not a big company, it was clear from the beginning that it would not be able to influence the suppliers. The company has not compromised in drafting out robust SLA’s and engaging in hard negotiations with its suppliers for provisions of rapid support and reduced ambiguity in the contracts. With this said, for an SME it is not strong SLA contracts that finally help to carry it forward at the time of crisis. “The key is to build strong relationships with your partners and third party suppliers, because at end of the day, you don’t want to be in position six-months after you go-live where you need to resort to that contract”. The challenge for an SME is therefore to switch from

SMEs IT survival mantra

Kevin Gaston

a customer-supplier relationship to more of a partnership situation,” he said. At the time of the tender bids, the Legal and General’s IT department engaged with not just the sales level employees of the support companies but also the actual back-end employees who would be in touch with them at the time of critical support. Only after the due diligence of the possible support levels from the IT suppliers and the capability of its support staff, did the company sign the actual contracts. “There is a risk that you can be too trusting” is the lesson which Gaston carries forward, coming out of his twenty-five

The key is to build strong relationships with your third party suppliers, because end of the day, you don’t want to be in a position sixmonths after go-live where you need to resort to that contract

SME viewpoint, UK vs Bahrain

UK up Much wider choice of IT suppliers Wider range of disaster recovery solutions Lower costs from a telecom and bandwidth point of view

IT should be amongst the first stakeholders Build the business on an IT solution backbone Outsource, outsource, outsource IT activities Build robust SLAs and engage in strong negotiations with IT suppliers Avoid being too trusting with IT suppliers Move towards strong relationships with IT suppliers Switch from customer-supplier to a partnership model with IT suppliers Don’t ignore due diligence of an IT suppliers backend support If possible, engage in one-on-one with support employees before you ink a deal

years of experience in the IT financial services sector. At Legal and General UK he also headed the Java and Business Intelligent development areas. Comparing the older IT systems and procedures in the global giants UK office with an SME, he asserts: “It’s much easier for an SME to be built with IT upfront”. An SME has fewer stake holders and IT is always a key stake holder. “That’s one of the big challenges IT departments in other companies now have – trying to get ahead and influence the business”.

ABOUT: Legal & General Gulf provides conventional life assurance and savings products, and via its subsidiary Legal & General Gulf Takaful, it can also provide Family Takaful products. The company was formed in 2009 as a Bahrain Stock company and is regulated by the CBB.

UK down Rules in the UK for SME start-ups are quite arduous Need the right consultants for compliance and legal procedures Higher cost and longer lead time for start-up

Kevin Aston, ITO Director, has almost 25 years of experience within the IT and financial sector. He was part of the core team that started Legal & General Gulf and has been based in the region for the past three years. His recent area of focus and interest has been strategic cost effective outsourcing.

JUNE 2011

SME ADVISOR MIDDLE EAST

Business growth Organisational structure <<<

Have you created a monster? What does Frankenstein have in common with your business, asks Vikram Venkataraman, Director, Salvus Strategic Advisors.

In my last article on business plans, I took inspiration from the book Alice in Wonderland. This time, I’d like to ask you if you have read Mary Shelley’s The Modern Prometheus. I thought not. The book also goes by the popular name Frankenstein. Some of you have seen the horror film, I’m sure! Let me quote a couple of lines from the book – lines that you might just relate to your business and state of mind. The creator of the monster, Dr. Frankenstein (yes it was his name, not the monster’s) recounts his thoughts on creating it, “For this I had deprived myself of rest and health. I had desired it with an ardour that far exceeded moderation; but now that I had finished, the beauty of the dream vanished, and breathless horror and disgust filled my heart.” Every entrepreneur I know has toiled hard and given their

SME ADVISOR MIDDLE EAST

Do you sometimes feel that your business has turned into a bit of a monster over which you seem to have lost some control? That it is not responding to you? That it has become an all-consuming being, continuing to suck up all your hours and effort? JUNE 2011

sweet and blood (and, often, tears) and sacrificed leisure, family life, holidays and more to build the business. After a few years you would expect the business to settle, time and money to be aplenty and everything more or less on auto pilot. More often than not, especially in the case of SMEs, this just does not happen. Do you sometimes feel that your business has turned into a bit of a monster over which you seem to have lost some control? That it is not responding to you? That it has become an all-consuming being, continuing to suck up all your hours and effort, despite which some problems refuse to go away and little change happens? Here are some more symptoms: You are working far too much You seem to be doing everything Others don’t seem to be doing as much You have too many people reporting to you

Everyone is making too many demands of you Poor servicing has crept in, mistakes occur, complaints are regular and frequent You know there are some wrong people in some jobs Sales and margins are flat – there is no growth Productivity is poor – you know it, but can’t measure it, therefore can’t do much If your response is a resounding “Yes!!” to the above then, I’m afraid, your monster is suffering from a disease called organisational structuritis. It has to be disciplined, organised and tamed. Okay, you get it – now enough of the monster metaphors!

Questions and answers The answer to these problems is basically the organisational structure. This applies to your firm – whether small or medium. The phrase organisational

Business growth structure does not only apply to huge companies with hundreds of employees. Neither does it mean a hierarchy with levels, grades, titles, pay-bands and all the other paraphernalia that turn an entrepreneurial firm into a giant bureaucracy. Remember there are two words in the phrase – organisation and structure. If you are suffering from the symptoms mentioned above, it is clear that you have to plug some large holes in your OS. This is not rocket science, it is just that as one expands, focus and attention are not evenly spread across the key elements that contribute to a smooth, efficient and effective functioning of the company. It is this that causes such heartburn, inefficiency and tardy growth. So what are these key elements, which you should ensure exist, to fix these problems? What impact do they have on the working of your firm? There are five basic questions you need to ask and answer.

Do people have clear, written job descriptions that let them know what exactly they are meant to do? Do they have targets or goals? If they don’t know what they have to do, they won’t do it

What are people in the company doing? a Are they doing what they are supposed to do? b Are they the right people to do it? c Are they aware of what exactly they are supposed to do? A crisp analysis of this will reveal the “fitment” of people – you don’t want square pegs in round holes.

How are they doing their jobs? a Are they organised into groups (or departments) that combine tasks with a common purpose or are conducive to a smooth and efficient work flow? b If they are already organised into groups – are these groupings relevant now? When did you last check if they made sense in light of changing conditions? Are they organised by products, functions, geography or pure process?

Are they doing it right? a Are they properly managed, coached and monitored? Are

Vikram Venkataraman

the people doing the managing competent? b Are they managed by people who know what you expect of them? c Are they managed by people who have too many people reporting to them? It’s tough for anyone to manage more than seven to eight direct reports!

How much can they really do? This is not about output or capacity alone; it is also about the ability to do what is right for your customer – sometimes by doing things differently or going out on a limb to fulfil client needs or breaking a few rules in the process. Therefore: a Are they empowered enough – have you delegated enough? b Are the empowered people too few in numbers – in other words is your decision making completely centralised? If you want to grow and not kill yourself in the process, you have to let go. Ronald Reagan was not the brightest of presidents, but he was one of the most effective, hugely popular and served two terms. His secret was his management style. He once said, “Trust. But verify.” This is outstanding in its simplicity and embodies the spirit of delegation.

Do they know what is truly important? Here is a key element: a Do people have clear, written job descriptions that let them know what exactly they are meant to do? b Do they have targets or goals or to use management jargon – “key performance indicators”? If they don’t know what they have to do, they won’t do it. If they don’t know how much they have to do, they can never do it. So there you have it. Simpler said than done. If you are wondering how to figure out what is wrong and how to sort out these issues, here are a few pointers: JUNE 2011

Start with your own people and talk to them. The promise of change and your commitment will encourage them to tell you what is wrong and how to fix problems. They will also tell you how it was done in their previous jobs – which is great information about the competition too. Second, look at your competition and see how they do things. Third, look within you and align your personal goals with that of the company. If you don’t want to work 14 hours a day, 7 days a week, you need to let go, trust (and verify) and delegate. Fourth, you could ask an outsider – a consultant or advisory firm – to look at your business. Their unbiased, external perspective will be fresh and some harsh truths will surely emerge. I can’t help return to the metaphor: The Frankenstein monster turned out to be intelligent, sensitive and loving. If properly nurtured, understood and disciplined, he perhaps would not have resorted to devour his creators and mankind in general. Don’t let your baby go that way.

ABOUT: Vikram Venkataraman is a career banker with 25 years of experience in banking in India and the Middle East with various banks. Some of the key senior positions he held are: • Executive Director, Regional Head of Credit Structuring ABN AMRO Bank, Middle East and Africa. • Founding Member of Management Team and Head of Corporate & Institutional Banking, Dubai Bank. • Head of SME Business, Transaction Banking and Factoring, Mashreq Bank, Dubai. • Various assignments in Corporate Banking in HSBC India. His most recent experience in banking has been as the Head of the SME Business at Mashreq, which he left in 2010 to co-found an SME focussed investment banking firm – Salvus Strategic Advisors, JLT in Dubai and Salvus Capital Advisors Pvt. Ltd. in Mumbai. Salvus advises SMEs with the objective of helping them grow. Raising equity and debt capital is an integral part of Salvus’s activities. Vikram has also been an entrepreneur in the wellness business, giving him a unique perspective of SME issues, both from a banking and entrepreneur’s points of view. He holds a BA from Loyola College, India and MA from Oxford University, UK. He has served as the Secretary of the Oxford University Economics Society.

SME ADVISOR MIDDLE EAST

RESPONSIBLE BUSINESS CG AND CSR <<<

To be or not to be, that is the question! There is considerable resistance to implementing corporate governance and corporate social responsibility, EVEN WITHIN BUSINESSES THAT SHOULD KNOW BETTER. The mere mention of these words is often met with awkward shuffles in boardrooms. Mike Byrne talks to Maali Qasem, founder of Schema, about this thorny subject and whether or not real progress is being made to integrate these into the business community. Schema is an advisory practice established in 2007 which provides frameworks and infrastructures to aid businesses with incorporating best practices in corporate governance (CG) and corporate social responsibility (CSR). Although these practices have been ingrained into Western businesses for over a generation, the importation of such standards into this region has long proven easier said than done. Maali Qasem admits that, while on the surface integration is being embraced, a closer examination

SME ADVISOR MIDDLE EAST

shows that resistance is on-going. “Some of the reasons include lack of awareness of what corporate governance entails, the value that corporate governance can bring to the business and the leadership to bring about successful integration. Even after overcoming such obstacles, which is slowly occurring in the region, to feel the impact of the changes will take time,” she says. She points out that, too often, there is a simple reason offered up as to why the region is dragging its heels on the issue. The simple importation of western practices to this region, where the political, economic JUNE 2011

and social landscape is very different has shown itself to be, in many instances, ineffective. Carbon copied foreign standards often need to be tailored to accommodate such differences. “To be honest I think the key factors first and foremost are resistance to change and limited realisation of the added benefits that corporate governance and responsibility bring with them. This region has many businesses which have been, and continue to be, family owned and family run. This poses a problem in itself with embracing an effective governance culture,” says Maali. “Considering our regional

landscape, history and economic status, most family businesses are now at the stage of dealing with the third generation of family business owners, which is a key threshold. Most family businesses globally do not successfully hand over to the third generation – only about 33% succeed at this. With that in mind, family businesses are now actively seeking the structure that corporate governance brings with it along with the value of succession planning and the importance of creating a family constitution to ensure the growth.” But she admits that there

RESPONSIBLE BUSINESS

will always continue to be resistance unique to family businesses, based on the emotional attachment to the business, although this is gradually being overcome by the added value that corporate governance brings.

Stumbling blocks With the aftertaste of the worst financial crisis in over 70 years still looming, who can blame regional businesses for wanting to stick to what they know? Small and medium enterprises in the region have performed above expectations – adaptability, versatility and the ability to make quick decisions without the boundaries of corporate responsibilities has led to huge growth. But it has often been suggested that what businesses in the region gain with short-term versatile strategies, they lose with lacklustre long-term policies. This includes their approach to corporate governance as well as corporate responsibility. “Unfortunately, corporate responsibility is still perceived as a philanthropic practice that is handled on the side of the business,” she admits. “As such, it is still lagging behind in terms of foresight, long-term strategy, and, equally as important, integration into the business. In other words, genuine long-term commitment is either from within, based on a belief system that the business owners have, or driven externally from the need to do business globally or with global partners.” “It goes to show that during the recent financial crises, businesses that had invested in the strategic notion of corporate responsibility survived with flying colours and continued their corporate responsibility investments, whilst businesses that used corporate responsibility as a PR tool or a side component, were affected in the crisis and substantially reduced their investments,” she adds.

Multiple benefits At the centre of most arguments for the implementation of corporate

Maali Qasem

With increased corporate responsibility aligned with environmental practices, it has been shown that operational costs can be reduced and with more strategic corporate responsibility and engagement with the community risks can be minimised, and in some cases, lower the risk threshold of businesses

governance and corporate social responsibility is the added value element. “Corporate governance and responsibility makes business sense. It is no longer simply a “good thing to do” or a practice that is intended to make the business or business owners “feel good”. It is a strategic business exercise that should be undertaken to ensure the sustainability of the business. It is worth noting that businesses that have invested in these improve performance, lower costs, minimise risks and, accordingly, all that pours into the financial benefit of businesses,” notes Maali. She emphasises that with increased corporate responsibility in the workplace, it has been proven that employees are more satisfied and therefore perform better. “With increased corporate responsibility aligned with environmental practices, it has been shown that operational costs can be reduced and with more strategic corporate responsibility and engagement with the community, risks can be minimised and in some cases lower the risk threshold of businesses.”

The road ahead So where to go from here? How can businesses align their commercial objectives with corporate governance and corporate social responsibility measures, especially when we consider that the region is not out of the economic dip just yet? “Although cost is often a concern, I have seen companies implement corporate governance and responsibility at very low budgets and in theory they don’t need to be costly. For SMEs on the other hand, I would say that an influencing factor is also the june 2011

lack of availability of resources to implement,” adds Maali. She continues: “There are common measures and best practices that we have seen successfully align corporate governance and responsibility (CGR) with commercial objectives. Rather than viewing the implementation of such standards as burdensome, CG should be used as a tool to achieve commercial strategic goals and objectives – in fact CG can be successfully used to understand and address current commercial risks,” she says. What Maali explains with clarity is that in order for it to be effective and to be more manageable, CG principles need to start from the top and be allowed to filter down through the business – by not limiting it to the boardroom or certain departments CG can become part of the culture, as opposed to an exercise invested in from time to time. “In order for CG to grow and bear fruit strong leadership in demonstrating the affects of CG to the employees must happen. Allowing them to play an active role gives it all a more realistic and practical value,” she says. The demographic structure of the region would suggest that the increased interest in entrepreneurship and the rate at which new start-ups are emerging onto the market, there is certainly a role that private equity, venture funds and angel investors are playing to ensure the integration of CG practices, such as risk management and whistle blowing principles. Therefore one should ask: is it the emerging businesses that need persuading of corporate governance or is it a case of winning over the well established and long-serving business minds in the region?

ABOUT: Maali Qasem, CEO and founder of Schema, has made considerable contributions to corporate culture in the region, with recognition from the Millstein Centre for Corporate Governance and Performance, Yale School of Management, as well as being granted Rising Stars of Corporate Governance Award in 2010.

SME ADVISOR MIDDLE EAST

Responsible business Non-executive directors

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The outsider

Julie Irving, Partner of NxD-global shares her top reasons why SMEs should include a non-executive director in their business development plans.

in determining corporate strategy, providing guidance on achieving strategic goals and allocating corporate resources to support strategic plans. All corporate entities, no matter what size or status, stand to benefit from the experience that good non-executive directors can bring to their business. In a small or medium sized enterprise, these benefits are often realised more quickly than in a larger organisation. Yet very few small business owners consider nonexecutive directorships as a feasible option for fast-tracking their business growth.

A fresh pair of independent eyes A non-executive director on the board of a smaller company can make a huge impact by bringing an independent view to the business. A new, experienced, â&#x20AC;&#x153;fresh pair of eyesâ&#x20AC;? paves the way for improvements in performance. The ability to challenge others on the board and contribute a

SME ADVISOR MIDDLE EAST

JUNE 2011

fresh perspective is invaluable to a small business. It is of little use telling boards only what they want to hear; rather it is constructive criticism that usually provides the most valuable opportunities for real improvement. The right strategic blueprint It can be argued that there is no better time for a company to start working with a non-executive director than in their start-up phase. Having an experienced and objective non-executive on the board can help ensure that the business strategy is sound from the outset. This negates the reality faced by many businesses, of going down the wrong strategic path and investing time and money in having to deal with the fall-out from ineffectual strategic direction. A non-executive director can make valuable contributions

A marriage of flexibility and expertise Careful matching of a nonexecutive director to the needs of a company ensures that the non-executive has the right skills and experience to bring tangible benefits to the business. A nonexecutive director can bring specialist skills during times of change such as geographic expansion, company sale, acquisition, succession planning or change in ownership, flotation or raising funds. If priorities change, the non-executive director can also be changed to reflect the required skill set and experience. For instance, a company could start with someone to advise on strategy when setting up in this region; when that has been concluded, they may then want an expert on financing instead.

Responsible business

Improving board performance In the smaller company scenario, a non-executive director works closely with individual directors to help them identify their strengths and weaknesses. Bringing an independent and experienced perspective to help set board members’ key performance indicators and objectives considerably enhances the company’s chances of success. When it comes to deciding salaries, benefits and bonuses, the independent perspective of a nonexecutive is crucial.

Affordable and experienced specialists Many smaller companies are often reluctant to pursue the idea of a non-executive director because of pre-conceived notions about the cost. In reality, non-executive directors are a fraction of the cost of a full time director and offer flexibility in terms of timing. For example, a board may decide they only need the non-executive director at quarterly meetings rather than monthly, which would decrease the non-executive’s fee. Considering the specialist expertise and strategic skills that a good non-executive brings, they are a viable and cost effective option for SMEs. It’s not that one size fits all, but all industries and all sizes of business can benefit. Obviously the type of talent that a very small business would require could be specific and different, and the assistance may be of a different frequency.

Better corporate governance With policy changes being implemented which will make it easier for SMEs to be listed on the stock exchange, there is going to be a wave of companies brushing up on their corporate governance. Studies have revealed how a large percentage of businesses change and improve upon this when they

Studies have revealed how a large percentage of businesses change and improve upon their corporate governance when they go in for IPOs. Sometimes all they need is somebody to assist them – someone independent, if possible, who can look at their business in a different way

ABOUT:

go in for IPOs. Every business has the fundamentals of corporate governance because people want to do it right, they want to grow their business. Sometimes all they need is somebody to assist them – someone independent, if possible, who can look at their business in a different way. The world has had to relook at how things are done, including business in general, and it’s not just this region – even the more mature markets have had to review, change and implement procedures and it’s a matter of time before it sweeps through the world. JUNE 2011

Julie Karen Irving is one of the founding partners of NxD-global and is responsible for the overall strategic direction and management of the company. Julie established NxD-global with her business partner John Martin St Valery in January 2011 to provide the Middle East with a business matchmaking service dedicated to non-executive directorships. Julie has nine years experience living and working in the Middle East. Following a main board level directorship with Airtours International, Julie relocated to Dubai in 2002 as Managing Director of an airline supply company. After successfully completing the re-engineering of the Middle East operation, Julie formed her own consultancy focusing on small to medium business enterprises in the Middle East. In 2006 Julie joined the Links Group as Chief Operating Officer, having previously been an independent advisor to the board consulting on strategic planning. She continues to advise a number of group companies at board level on a retained basis, specialising in strategy review and implementation. Julie’s earlier career includes senior roles at Trans European Airways, Airtours International and Tass ME (Part of the Duni Group). She is also a long-term member of the Institute of Directors (IOD) UK. For more information visit www.nxd-global.com.

SME ADVISOR MIDDLE EAST

Responsible business Sustainability

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Champions of change Sustainability is about more than just being a green business, says Amanda Line, Regional Director ICAEW Middle East.

The business landscape in the UAE has changed drastically over the last decade. Sustainable business practices and corporate social responsibility (CSR) are now accepted as more than just a passing trend, as the growth of events like the annual Dubai Dialogue has shown. Globally, the impact of climate change and the financial instability have encouraged businesses everywhere to rethink the way forward to ensure their survival and stability, both financially and environmentally. Locally, companies are coming to recognise that

SME ADVISOR MIDDLE EAST

JUNE 2011

businesses that adopt sustainable practices achieve more in terms of productivity than those that do not. Failure to deal with the critical challenges for climate change will have a catastrophic effect. The UAE has one of the highest ecological footprints per capita in the world, mostly because of the need for energy and water. But this problem has been recognised and the government has taken several initiatives to discover longterm solutions, like investing in clean technologies and funding the development of Masdar City. However, if business is to avoid even

more serious turmoil than that of the global economic crisis, everyone â&#x20AC;&#x201C; including the private sector â&#x20AC;&#x201C; must play their part in delivering the radical change that is needed.

Not just marketing, not just nice to have The first thing to appreciate is that sustainable business is not a bonus or a marketing exercise. Successful businesses of the future will be ones that have managed to adapt to the new landscape and place sustainability at their core. It is no good hoping that a company will be able to adapt

Responsible business

immediately in the future, by fine tuning and re-gearing to challenges like resource shortages or more stringent regulations. These things must be factored in early.

Not just turning off the lights One of the issues with sustainable business is that it is often associated primarily with “being green”. Green issues are undeniably important, and businesses’ behaviour can have a large impact. Businesses tend to be resource-heavy in terms of energy use, transport and even elements like stationary. Thinking about how those resources are used and whether they could be used more efficiently – or even, in some cases, dispensed with – can lead to tremendous savings both financially and environmentally. But “sustainable business” is about far more than turning off the taps or reusing paper cups. It means thinking about resources and one’s impact on the business surroundings in a whole new way.

Asking tough questions In order to make business more sustainable we need a marketbased system that both rewards and drives business towards sustainability, where the relevant information is accessible to the right parties, helping them make the best decisions. This means that businesses need to consider their wider role and ask themselves some tough questions. For example: Will people still need the goods or services they sell in the future? How reliant are they on resources that could run out? This means reworking strategies in the light of sustainability rather than maintaining existing business models.

possible labour might save money in the short term, but it may mean being in constant need of retraining staff. Then as staff develop the necessary skills, they will expect more remuneration and – if not promoted – will be likely to leave. Whilst offering low wages might look like a good cash-flow approach in the short term, ultimately this is not a sustainable business model. The company is absorbing all the costs of staff training, equipping a workforce with skills that someone else will then pay slightly more for, leaving the company where it started! A sustainable approach is to view good staff, and their training, as an investment in the future. This is all the more important now that the worst of the global recession is past us and economic growth is starting again. Companies that have worked hard to incentivise and retain good staff are in the best possible position to take advantage of the upturn, with the resources and skills in place.

Businesses need to consider their wider role and ask themselves some tough questions. For example: Will people still need the goods or services they sell in the future? How reliant are they on resources that could run out?

Accounting for sustainability For any business to meet this agenda it needs to be able to have the right information, whether it is considering human resources, supply chain management, or how to add value to products and services. Getting that information involves being able to measure and monitor performance, and then

communicate the results. This is where accountants come in. Accounting is all about measuring and monitoring performance and then compiling the results in a way that means that they can be used for planning and business strategy decisions. For organisations with the foresight to refocus on sustainable business, accountants have a key role to play whether they work as business advisers or in the finance function of a company.

The future of sustainable business Embedding environmental and social good practice into commercial operations is not just good for the world, it is good business and should be part of the day-to-day life of any organisation that wants to survive and grow. By focussing on sustainable strategy, businesses will improve their ability to respond to new challenges, to manage risk, and to understand their priorities as markets change. As the business environment changes to reflect the growing emphasis on sustainability, organisations that have made it one of their core values will be the best placed to take advantage of new markets and to develop.

ABOUT: Amanda Line was appointed as the Middle East Regional Director of the Institute of Chartered Accountants in England and Wales (ICAEW) in September 2009. The ICAEW provides leadership and practical support to over 132,000 members in more than 160 countries, working with governments, regulators and industry in order to ensure the highest standards are maintained.

What does sustainable business look like? A good example of this might be a business’ approach to its workforce. Hiring the cheapest JUNE 2011

SME ADVISOR MIDDLE EAST

Responsible business CSR

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Beyond branding: CSR as a tool for competitiveness and productivity Corporate social responsibility provides competitive advantage in an evolving business environment, says Tatjana de Kerros, an independent research analyst and consultant, specialising in entrepreneurship and private sector development for the GCC region. The current economic and social climate in the UAE has put competitiveness, sustainability and responsible business at the top of the agenda. Whilst corporate social responsibility (CSR) practices have been controversially associated with improving brand recognition and enhancing a company’s reputation, this has neglected CSR’s potential of improving efficiency, productivity and market orientation. Rather, having a CSR strategy embedded within a business model not only serves in gaining a competitive advantage by increasing reputational appeal; but responds to changing stakeholder demands in an evolving environment. The Dubai Chamber and PepsiCo launched the first comprehensive study of CSR and corporate governance in the UAE, finding that 42% of respondents believe that CSR increases productivity. However, 66% of companies in Dubai1 cited that a lack of awareness and financial resources prevented them from taking part in CSR initiatives.

SME ADVISOR MIDDLE EAST

Furthermore, another study conducted by the Dubai Chamber in 2009 revealed that only 48% of small and medium enterprise (SME) leaders were aware of CSR, a clear contrast to customers, of whom 55%2 said they would be more likely to be loyal to a company that is socially responsible. Generally, SMEs refrain from taking part in CSR initiatives due the belief it requires large financial endowments, creates time and knowledge constraints, and adds pressure on an already strained workforce. Small business owners should be made aware that in reality, CSR does not have to be an add-on coming at extra cost and wasting valuable resources. Rather, if CSR is integrated within the overall business strategy, it can be incorporated as a costadvantage which emulates the core competences of the business. If an SME focuses on the

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value it already detains (within products, services or business processes), CSR can be successfully operationalised in organisational values and codes of conduct, without having to implement a radical and costly transformation. In truth, SMEs have a better ability to initiate and scale responsible business practices than large companies. Their size allows them to be more responsive and flexible to

market changes, there is less bureaucracy and more fluid decision-making.

Changing perspectives CSR induces a direct engagement with stakeholders, be they suppliers, customers, competitors or society at large. It provides an opportunity to manage stakeholder relations strategically and harmonise multiple interests and priorities. In a survey conducted by the Sustainability Advisory Group in 2010, 65% of regional executives believe CSR is about “minimising negative and maximising positive impacts”3 and not about community investments. They also stated that CSR was implemented to attract new customers, draw and retain the best employees, and foster innovation within the workplace. The concept of CSR needs to shift from actions relating to corporate philanthropy and cause-related marketing, to solutions which involve creating economic value in a way that promotes social value. The success of a venture can only be determined by optimising longterm financial performance, understanding consumer needs, as well broader influences which determine the business environment. Ignoring new market structure trends will create internal costs within the organisation that are much more costly than responsible business practices. CSR initiatives do not need to be fragmented, but can be achieved through new

Responsible business

operating methods, utilising available technology and devising new management approaches.

Creating assets Therefore, what are the economic benefits of embodying a CSR strategy at the core of the business model, and how can SMEs implement this without having to concede to trade-offs? How will it add value, open new market opportunities and drive growth? Firstly, CSR promotes innovation within the organisation. By seeking to add value, it requires a change in the manner in which the business is run. Fostering innovation can be achieved through clearer leadership and management, using available technologies to enhance operational efficiency, determining a long-term vision for the organisation, investing in human capital, improving reporting and communication, and engaging in strategic partnerships. The more an organisation will develop innovation-capacity, the more it will be able to add value to the market and foster financial discipline which will be translated into social outputs. Employees are the first stakeholders which drive a business to success, and should be the starting point for any CSR initiatives. For SMEs, employee engagement and retention are some of the most important factors to efficiency. Numerous studies have correlated that a positive environment within the workplace – which includes social benefits, training and welfare incentives – attracts a skilled workforce, enhances commitment and is cost-efficient. In addition, data provided by the Dubai Chamber shows that consumers will be influenced by the manner in which companies treat and pay their employees, and engage in other employee-related issues. Investing in human capital produces difficult-to-trade assets, such as knowledge and trust, which can give a business its competitive advantage and foster an entrepreneurial culture. It

ABOUT: Tatjana de Kerros is an independent research analyst and consultant, specialising in entrepreneurship and private sector development for the GCC region. Her clients include scholars, entrepreneurial support programmes and multinationals, and she is currently consulting for Sacha Orloff & Co for CSR intrapreneurship projects in the region. She is also a founding member of MENA400, an initiative led by KAUST and the Arab Foundation for Science and Technology. She previously managed entrepreneurship and media programs for an NGO in North Africa, and was a semi-finalist in the MIT PanArabic Enterprise Forum 09-10. Tatjana is the founder of The Entrepreneurialist, a blog that provides commentary and analysis on entrepreneurial initiatives in the GCC, and aims to bridge the knowledge and practice gap and foster collaboration, action-orientated solutions and best practices. Her aim is to contribute to building an ecology which fosters the emergence of highgrowth enterprises in the region. She is a graduate in International Relations from the University of London, and will be pursuing a PhD in Entrepreneurship and Innovation Management in 2012. Tatjana can be contacted: tdekerrosb@yahoo.co.uk Blog: www.theentrepreneurialist.net Twitter: @entrprnialist

also boosts organisational performance, as employees are provided with an opportunity to learn and align themselves with organisational goals. Before targeting a variety of issues on the social agenda, it is easy for a business to forget that customers are at the heart of the business. They drive growth, sales, reputation and market-orientation. The first social responsibility of a business is to provide customer value through the provision of quality, safety and consistency. Being customer-oriented increases the ability of the organisation to respond swiftly to market changes and what influences customer needs. This in turn greatly reduces risk and volatility, and does not require an overhaul of business strategy, and customer orientation becomes a key part of its CSR initiatives. Being aware that a serious shift in the business climate has led to consumers being more scrutinising towards the role and responsibility of business can lead to play substantial impact on reputation and long-term viability. Lastly, there is no point for businesses to act socially responsible if there exists no awareness towards CSR activities. Creating awareness is the duty of all stakeholders – the public and private sector, as well as consumers, media and non-profit agencies. Communication is key, and the difficulty to communicate with stakeholders has been one of the main deterrents to embedding CSR practices in the region. Businesses need to develop the internal skills to communicate about their CSR activities through, for example, better reporting, auditing and transparency. Consumer data in the UAE shows that annual reports or other forms of company information are regarded as very credible sources relating to CSR activities, and most will turn to online sources of information such as a company’s Website4. Communication has to JUNE 2011

be valued as a business input, and will uncover the value within the organisation. Most importantly, it is a reminder that the business exists within a community, and that responsible practices can then have a multiplier effect, benefiting the business environment as a whole. CSR is about building an ecosystem that rewards and incentivises responsible practices within the workplace, supplychain, market-place, community and wider environment. A healthy society demands a vibrant private sector, as no social programme can rival it when it comes to generating employment, wealth and innovation. What should guide CSR is the ability to add value, which in turn generates new opportunities, particularly within an emerging market. It enables putting resources to use more efficiently, and yielding higher benefits. Through cooperation and partnership, organisations can use their CSR efforts to improve the business environment in which they operate, aligning economic and social goals to develop sustainable, long-term prospects. CSR has gone beyond branding; it is now a tool for increased productivity which cannot be separated from the competitive context. Notes: 1

Rettab, B., & Rahman, S. (2010). Dubai Dialogue: Sustainability Matters 2010. Dubai: Dubai Chamber Center for Responsible Business. 2

Belaid, R., & Ben Brik, A. (2009). Consumers View of Corporate Social Responsibility in the UAE. Dubai: Dubai Chamber Center for Responsible Business. 3 Sustainability Advisory Group. (2010). What do Middle Eastern Executives think about CSR? Dubai: Sustainability Advisory Group 4

Belaid, R., & Ben Brik, A. (2009). Consumers View of Corporate Social Responsibility in the UAE. Dubai: Dubai Chamber Center for Responsible Business. SME ADVISOR MIDDLE EAST

Responsible business Business guru <<<

Turning turtle

Ketaki Banga looks at how the Jumeirah Group turned its CSR marketing strategy on its head and leveraged social media for its turtle rehabilitation project.

What does a turtle have to do with a luxury hotel brand? And what does a luxury hotel brand have to do with SMEs? Well, social media is a great leveller and while the scope of the Jumeirah Group’s Dubai Turtle Rehabilitation Project, in its entirety, is beyond what SMEs can implement, we can still walk away with brand and marketing insights that could be used by businesses of all sizes. But let’s start at the very beginning. We met Piers Schreiber, Vice President Corporate Communications and Public Affairs, Jumeirah Group, at a dinner at the Al Qasr hotel organised by the University of Strathclyde’s marketing faculty as part of their “Celebrating Marketing Week”.

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During a casual conversation between Piers Schreiber and a university professor, he mentioned that the Jumeirah Group helped turtles, “And by the way, it’s a very important marketing tool for us.” The next thing he knew, he was invited to talk about the story of their programme, how it evolved, and how it’s emerging from a CSR perspective to be a very important differentiator for the Jumeirah group as a brand. The group, incidentally, was founded in 1997 and boasts a portfolio of luxury hotels and resorts.

Background basics So how exactly do they get turtles out of the soup, figuratively speaking? The Dubai Turtle Rehabilitation Project has been running since 2004 and is a collaborative effort between the Wildlife Protection Office and Burj Al Arab Aquarium.

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“We researched social media penetration, languages, trends, usage patterns and so on in this region. All of this was relevant in how we developed our communication strategy around CSR and around turtles. Social media was absolutely critical to the way in which we wanted to approach the turtle challenge.”

The Hawksbill turtle, native to the Middle East, is listed as critically endangered with only an estimated 8,000 nesting females left worldwide. Without human intervention, the Hawksbill turtle will almost certainly become extinct within our lifetime, explains Piers. All of the turtles found in the Dubai Turtle Rehabilitation Project were at one stage very sick or injured. Turtles are brought to Dubai’s Wildlife Protection Office or to the Aquarium team at Burj Al Arab by members of the public where they are then referred to veterinarian and the team at the Al Wasl Veterinary Clinic. Once the cause of sickness is identified and primary care has been administered, the turtles are returned to the Burj Al Arab Aquarium where the team can closely monitor their recovery. “When the team is satisfied with the progress, the turtles are transferred to the Mina A’Salam turtle enclosure – where I can guarantee they don’t serve turtle soup,” assures Piers. The enclosure at the Mina A’Salam allows the team to monitor the final stages of rehabilitation before the turtles are released back into UAE territorial waters. The release always draws in big crowds from the local community. Piers explains that the first part of their CSR is to look after the turtles and the second part is to raise awareness – from hotel guests to the school kids who come from across the UAE to learn about these turtles. “People can name them, which adds to the human element, but what they want more is to follow their progress afterwards,” he reveals. The project has seen the release of many rehabilitated turtles of which some have been fitted with satellite transmitters to enable the team to track their journey.

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Piers Schreiber

The satellite trackers are very important – one, for scientific research and, secondly, for social media. “Nothing could be more interesting than actually following the turtle you’ve named!” says Piers. The project’s record-breaking turtle, Dibba, left Dubai and made it almost as far as Thailand. Its progress was followed on Facebook by thousands of fans. “Having said that, we had this other turtle who went all the way from Dubai to Jebel Ali, and had just as many followers urging it on,” grins Piers.

Social media strategy What is interesting about this CSR activity is that instead of traditional media, it leverages social media as a core strategy. “We recognise that this region is very focussed on the use of social media, and people want to look at stories that are not about the group and not necessarily even about the hotel, but about things that are relevant to the community, and even to guests in our hotels who are looking at things that are more general interest, rather than special offers in our restaurants,” admits Piers. “We researched social media penetration, languages, trends, usage patterns and so on in this region. All of this was relevant in how we developed our communication strategy around CSR and around turtles. Social media was absolutely critical to the way in which we wanted to approach the turtle challenge,”

he continues as he explains that every strategic business unit (SBU) in the group, whether it’s a hotel or department, is on Facebook and Twitter. “For YouTube we have one global account where all of the appropriate videos are uploaded in a controlled way.”

Content strategy The next step was how to define their content strategy across these channels. “We always look for a physical reference point and there’s nothing stronger than the Burj Al Arab – of course there is also the Burj Khalifa now – but to have that physical reference point is important as a locator, and also for us as the Jumeirah brand,” elaborates Piers. The second step in their content strategy was to look for an emotional reference point – the human element. And the third step was the experiential reference point. “What was the quality of the experience that we were trying to communicate? There are so many stories you can find in a hotel, which would make up all the anecdotes that guests could come back with,” explains Peirs. To cite an example, the most popular videos on Jumeirah Emirates Towers that come up in search have been taken by guests as they whiz past floors in fast elevators. “And that’s not us; that’s them! That’s what we mean by an experiential reference point – imaginative experiences that

“The most popular videos on Jumeirah Emirates Towers that come up in search have been taken by guests as they whiz past floors in fast elevators. And that’s not us; that’s them! That’s what we mean by an experiential reference point – imaginative experiences that connect them to a place.”

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connect them to a place,” he adds. So they’ve got physical, emotional and experiential and what do they do with them? “In the end it’s about connecting it all back to the brand,” Piers answers. Jumeirah has a brand definition or slogan which is “stay different”. It was originally inspired by Emirates Airlines as the two brands were built on the same premise of promoting Dubai as a global hub. “Emirates was ‘fly Emirates’; we didn’t want to be ‘stay Jumeirah’,” he half jokes, “so we chose ‘stay different’ because it reflects the individuality of the guests and the experience, which is not cookie cutter.” So that quality of “stay different” in the experience is broken down into three dimensions – imaginative and exhilarating, thoughtful and generous, and being culturally connected. “Not just connected to people’s cultures but also our group culture,” clarifies Piers. “So once we pass those raw experiences through these processes, we come up with the brand experience.” They do not hard sell this through traditional communication; rather, they focus on spreading it through social media so people can come in and join the conversation. “Many people have asked us how they can be involved; so it’s creating its own demand and passion,” he reveals. “With social media, our ultimate aim is to drive up the number of fans and followers to increase the traffic to our Website. Just as we have physical destinations, Jumerirah.com for us is the virtual destination, and people should have that same quality of experience when they arrive. Ultimately, we want to create greater mindshare and brand awareness and, hopefully, convert that into market share,” Piers summarises. SME ADVISOR MIDDLE EAST

Case study Business Pin-up of the MontH <<<

Watch out, here she comes! Cynthia Trench – Principal, Trench and Associates legal consultants – is witty, vivacious, charming, confident, quirky, intelligent, and not someone you mess with. There’s a reason she’s nicknamed “The Rottweiler”. Ketaki Banga chats with the first female expatriate licensed legal consultant in Dubai.

obtained her licence in 1996 from the Rulers Office of the Government of Dubai as the first female expatriate licensed legal consultant.

Connecting the dots

The diminutive Cynthia Trench is a force to be reckoned with. You can love her or hate her, but you definitely can’t ignore her. Depending on which side you’re on, she’s a woman who is just as comfortable making grown men quake in their boots, as she is entertaining you with the most outrageous comments that have you laughing your head off in a combination of amusement and shock – “Oh my goodness, did she really say that!” But under the humour is a woman who knows how to get her point across. Having spent her formative years in Hong Kong, Cynthia completed her degree at the University of Hong Kong and was admitted and qualified as a solicitor in Hong Kong in 1986. Her first language is English but she also speaks Cantonese and French. She arrived in Dubai in 1989 and

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That journey had its share of twists and turns. Back in 1993, when South Africa had just opened up, the South African Foreign Trade Organisation (SAFTO) appointed her as their exclusive advisor for the Middle East. “What a wonderful title,” she quips, “and they even shipped me over to SA to look at their oranges and what not. I had a huge portfolio of products from avocados, to make up, jewellery and even helicopters, but you cannot be a Jill-of-alltrades. You’ve got to concentrate on something that you know and you know best.” Cynthia realised she was losing around AED 10,000 a month on faxing and telephone costs alone, and she pretty much had had enough. That’s when one of her old clients advised her to do what she did best, which is law, and that’s how she got back into it. What was the market like at that time? “There were lots of expatriate lawyers, and definitely female expatriates, but to have their own license is a different thing,” she reminisces. “There were a fairly small number of firms so, for JUNE 2011

Twice in her entire life, she had to go to people other than family and borrow money to make sure she paid salaries on time. One of them is a very good friend of hers and another is a client and, to this day, he reminds her about it

somebody like me coming from a city like Hong Kong, where it’s extremely competitive, I found it much easier.” Cynthia fondly remembers how 20 years ago, you could walk up to the offices of Al Abbar and the like and they would invite you in warmly and ask what they could do for you. “These days you’d be lucky to get a phone call returned from smaller companies!” she observes sardonically. “It was fantastic back then; you could get right up to the front of the queue, especially if you’re a woman, and especially because I was not the usual mould – I am not English – so they were a little bit more curious.” When she got her license, she says her existing client base was jubilant: “One of them is Ali Al Bawardi, the owner of Spinneys, and he did a lot of campaigning and introductions for me and I am very grateful to him.” She was also referred by other really strategic clients and this word-of-mouth publicity set the ball rolling.

Hurdles along the way Cynthia makes it sound almost too easy. Surely, she must have faced more challenges! “My office was basically a residential apartment in Safa Tower. I’d already opened it by the time I resigned from my previous job. It

Case study

“The Dubai Economic Council is now looking at a nearly final draft of the new insolvency act that would basically facilitate people in declaring themselves bankrupt, which doesn’t really exist here yet. You can, but you can’t – mainly because of bounced cheques which just force you to be in prison or abscond.”

was a small place with one assistant, one secretary, and a gopher and that was how I started. It was tough in that sense because, when you start, you don’t know when your next cheque will come along and you don’t know how you will pay salaries. But my motto from the beginning has been to never ever miss paying salaries on time.” Of course there were tough times, she concedes. She remembers how, twice in her entire life, she had to go to people other than family and borrow money to make sure she paid salaries on time. One of them is a very good friend of hers and another is a client and, to this day, he reminds her about it. “So it’s tough when you are the sole proprietor and have to start a business. But once you have a reputation and your business is rolling, that’s fantastic!” she beams as she remembers the good old days when she had a team of five. “Having five people is so easy to

manage! I used to throw a stapler [not a staple, she clarifies] at one of my girls for chatting too long on the phone. Things were lots of fun [of course!], but the moment it became big it was very difficult, and I am speaking as a business person, not as a woman.” She mentions grappling with issues like getting an overdraft from the bank, or HR concerns with a larger team. She also admits that she tends to get very involved. “That’s the way I do business, sometimes to my own detriment, because all my staff know that I work till midnight, most nights.”

Perceptions and Rottweilers While she mentions these general problems that most entrepreneurs face at some point or the other, she does admit that in some ways being a woman helps: “In terms of networking, meeting clients, getting to know people, being a woman is JUNE 2011

definitely an advantage – although any person with charisma can handle it. But make sure that you garner respect rather than gain a bad reputation in the market. I like the fact that, when I first started, my nickname was “The Rottweiler”. So that was nice, though I’ve mellowed down over the years.” What led to that name, I ask, though I can somewhat guess. Cynthia laughs as she remembers this time, when she was in a meeting with eight very traditional and formal Kuwaiti men, and she went in and thumped the table on an issue and all of them jumped. “One of them is a very good client of mine to this day,” she grins. “At one stage I was also known as ‘The Ice Queen’. But now I train other people to be Rottweilers.” Besides being called many interesting names, lawyers are also expected to be magicians and perform miracles, feels Cynthia. “They’ll say, ‘Oh, I have this really SME ADVISOR MIDDLE EAST

Case study

troublesome debt – AED 300,000 – not much.’ So I’ll ask them about the documents they have, to which they’ll reply, ‘Well, not much.’ Then in the end you find out they have no documents and they have given the other party a few bounced cheques, and they expect you to extricate them from such a problem! So, it’s also about educating the market.”

Knowledge is power Education is an area where Cynthia is quite active, especially with regard to inheritance, labour law and property. Cynthia has spoken at several seminars, including the Brand Protection Forum for the Automotive Group, International Women’s Group, workshops at Sheikh Mohammed’s Establishment for Young Entrepreneurs (SME) dealing with the establishment of entities and franchising, and workshops with banks on estate planning. In 2004, she was awarded the Best Service Provider by H.H. Sheikh Mohammed bin Rashid Al Maktoum on behalf of SME. “For me it’s CSR driven because I mostly don’t charge for these events. It’s all my outlay of time and at a recent symposium we actually paid out a lot of the costs as well, which is really important for me because of what I could achieve out of it. One is recognition, secondly, education of the public and, thirdly, we try to convey feedback to the government so changes can be made, which is more important than the first two points,” explains Cynthia. One area that could do with change is the insolvency law. “Fortunately the government is looking at this extremely hard and the Dubai Economic Council (DEC) is now looking at a nearly final draft of the new insolvency act that would basically facilitate people in declaring themselves bankrupt, which doesn’t really exist here yet. You can, but you can’t – mainly because of bounced cheques which just force you to be in prison or abscond. There’s no real choice,

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“I am definitely going to grow but not in a huge way. A couple of years ago I had delusions of grandeur, as did everyone at that time.”

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especially when you’re dealing with a bank that refuses to listen and we’ve known of many such cases. So the DEC is looking at allowing the issue of bounced cheques to be reviewed. The second part is to allow individuals to declare bankruptcy,” she explains. Cynthia has worked in many countries, so how does the UAE compare in terms of being conducive to starting a business? “I’ve just started doing business in China. In the five years I’ve been there, I can’t tell you how much has changed; the people are polite, the civic sense is better, you’re allowed to criticise them with regard to their service – within reason. I was in Hong Kong and had to get a China travel pass and was panicking. In the old days you’d have to deal with guys digging their ears and other places, who don’t want to listen to you. Now it’s fantastic. You go in there, it’s all pre-booked online and very streamlined. So the mentality is that you’ve got to change for the better, you’ve got to be open to criticism,” she emphasises, “because that would allow people to come back to you rather than harbour a lot of dissention and anger. One way to facilitate feedback would be to have proper consultants reviewing the system and gathering feedback – whether it’s reviewing free zones or even something like why can’t people share a flat! Gone are the days when salaries were at a peak!” Another area she’d like to highlight is inheritance laws for expatriates. “Right now there are many unscrupulous will writers, including lawyers, who don’t know what they are doing – and I am very open about the subject. They are abusing the Shariya system and making people believe there is a UAE compliant will when there’s no such thing.” Cynthia explains that if you’re a foreigner, as is the case with a huge percentage of business owners and employees here, and if you want everything to go to your spouse,

it doesn’t work that way because suddenly your entire family comes into play according to Shariya. “And when there’s complicated family structure, it gets quite difficult. We are handling two cases right now; they’ve been conned by this outfit to draft an unenforceable will and of course they didn’t know it! “So what can be done in the meantime? There are ways of circumventing it by simply understanding Shariya, and it’s not scary for people with a fairly simple family structure. For instance a man who has a brother but wants his wife to inherit can plan this in advance. You need a power of attorney from the brother saying the wife is entitled to his share of the estate, because the brother is entitled as a Koranic heir. Have everything clear and plan ahead.” Cynthia advises this same clarity in the housing market: “Get the investors to come back into the market, address their concerns by clarifying the law and reassure them that there’s no fear.” So what lies ahead for Cynthia, and Trench and Associates? Currently her firm has 21 employees. “I am definitely going to grow but not in a huge way. A couple of years ago I had delusions of grandeur, as did everyone at that time, and I decided to have a partner but the formula for the partnership was wrong. Fortunately for me it didn’t happen because he found out I was a Rottweiler,” she laughs. “Right now I am looking at another formula where somebody can come in right from the beginning with an injection for capital expansion, and then we join forces to grow – but we are talking about relatively organic growth here,” she concludes. Well, not quite. Being Cynthia she went on to startle, shock, amuse and impress me with a bunch of other (unfortunately) unprintable stuff.

A day in the life of… >>> Bliss Initiative

DIGITAL DELIGHT

At a time when many are looking to switch industries or try something different, we bring you first person accounts of the lives of entrepreneurs or senior executives, outlining a typical day in their business. Who knows, maybe the perfect idea is waiting for you. Read on and get inspired.

team tasks, meeting confirmations, and replies to customer inquiries.

:45 am I get on the road for a full day in Abu Dhabi, where a lot of my current ongoing projects are based. My day is split out into one big meeting or presentation, one proposal negotiation meeting, one catch up meeting and a client meeting.

Ahmad Al Hidiq is the co-founder and Managing Director, Bliss Initiative Established in 2010 in Beirut, Bliss Initiative is a digital technology agency, specialising in digital services website, portal and CRM solutions and mobile apps on different platforms. Currently expanding into the UAE market, they are in the process of setting up an office in Dubai. For more information on Bliss Initiative visit www. blissinitiative.com

:00 am I write my next day’s to-do list – I

find it very useful to prepare my to-dos the night before especially when I have a lot of calls, meetings and conferences the following day.

:30am This is when the battle with the five minute snoozes begins, after a couple of fights, it wins. I grab my phone and read what new emails are there and check out feeds from a few digital marketing Websites.

:20 am After having a quick breakfast, listening to the news, showering and suiting up, I sit down to write a couple of emails. These are usually to follow-up on proposals or

:30 am I arrive in Abu Dhabi and realise I have time before my meeting, so I grab a coffee, skim the local newspapers looking for icebreakers and tenders and make some calls.

:00 am I meet with a client, present and brainstorm a few corporate intranet and employee self-service portal ideas, as well as the social media integrated CRM.

:30 am At this time I normally setup a conference call with our production manager and JUNE 2011

Account Director in the Beirut office about several existing projects.

:00 pm Yet another meeting with a client this time we discuss an iPad app, where I have an opportunity to present a new prototype.

:00 pm As I am in meetings all day, I normally use my lunch break to meet with a business partner to go over existing proposals.

:30pm I take this opportunity to go back over emails and make some calls - I’ve just had lunch, so I need another coffee top-up to get through the rest of the afternoon.

:00pm Now I head to one of my client’s offices to coordinate with a few of our consultants working onsite, where we present our strategy and prototypes.

:30pm We have the day’s closing conference call with the Beirut office. I find it very useful to brainstorm any problems on the phone rather than email, as there is always someone that throws a word that triggers an idea or solution.

:00pm I use the last hour of the day to get through that pile of paperwork I’ve been avoiding all day.

:00pm I head back to Dubai as I have a football game, which I am generally always late for.

SME ADVISOR MIDDLE EAST

A day in the life of... Modula-Conceptio <<<

Dynamic duo JUGGLING HOME, KIDS, CREATIVITY AND A THRIVING CAREER

laying the most incredible resin flooring. Third-year graduating interior design students from the Manipal University have been invited for an extreme master-class on resin. They watch Mino artistically paint and install the various layers to create his masterpiece with inspirations drawn from the Avatar landscape and are enthralled at the transformation of the floor. We give them nuggets of information while Mino works and explains the unique qualities of the product and the technical requirements and processes involved in the laying of the floor.

Modula-Conceptio is a contemporary boutique based in Dubai, amalgamating unique styles of design from around the world, particularly Italy. It was launched five years ago and specialises in interiors, with projects and clientele extending to Egypt, Syria, Kuwait and the surrounding GCC and MENA region.

:00 am to 8:00 am: Our days start early what with five children between us to wake up, feed breakfast, get ready and ferry off to school! Thereafter we rush home, grab some breakfast ourselves and start our busy days.

SME ADVISOR MIDDLE EAST

:00 am to 10:00 am: Sabina is off to brush up Italian skills at a class in Knowledge village, which really helps due to the Italian companies we represent, and Kavita rushes to the showroom on Jumeirah Beach Road to make sure all runs smoothly for the art exhibition set up the day before in our gallery space upstairs. The art bus is arriving this morning to show its art hungry clients the exhibit and we are extremely proud to be a part of the Art Dubai Festival 2011 again this year!

:30 am to 12 noon: Meet onsite at a signature villa on the Palm Jumeirah where our artist Mino Longo is working hard JUNE 2011

:30 pm to 2 pm: We rush back to our beautiful showroom on Jumeirah Beach Road to catch up on the e-mails for the day. Our environment at Modula continues to fuel the creative drive we felt at the site we just came from. The individually crafted products that adorn our showroom – be it a beautiful bespoke resin table we use as our desk, or the many hand-blown Murano chandeliers and lamps – inspire us throughout our work day and remind us how proud we are to be representatives of a dying form of art. In today’s world of mass produced and machine made products, we stand apart by bringing handmade products by companies that have been around for hundreds of years. As people have flow in for the art exhibition, it brings joy to our hearts to see them come in and stop to admire our range before they continue their journey upstairs. We love to promote up and coming artists who complement our design ethos of bringing one-of-a-kind experiences to our clients.

pm to 3:30 pm: As much as we are addicted to our work, our children play an extremely important part in our lives. Like all working mothers, we strive to find that fine balance between work and home – and some days it gets quite manic! We both remember how important it was to us to have a parental figure around when we came home from school as children, so our lunch hours are spent fetching the kids from school and hearing how their day went. It is often extremely hard to tear ourselves away from them to return to work! Sometimes we split the afternoon responsibility between us, depending on the meetings, work and activities our kids have.

pm to 7 pm: Today we both return to the showroom and check mails again. We plan our next day and prepare a presentation for a prospective client meeting, which takes place in two days. The opening reception of the art show commences at 5:00 pm and the next two hours are spent meeting a varied, dynamic and interesting group of people enjoying their experience in our gallery upstairs and downstairs. The evening brings a different feel to the showroom which is quite magical because of all the lovely lamps and chandeliers we have. Often we wonder if our working hours should be more in the evenings as we so enjoy the ambience.

:30 pm onwards: We head to our respective homes and families and resume our roles as wives and mothers. Most evening after dinner, homework, and so on – when everyone has been tucked into bed – the entrepreneurs in us reawaken as, thanks to the Internet, one never has to stop following and creating one’s dreams.

SME ADVISOR EDITORIAL BOARD

We are hiring! and adding to our existing board

To ensure that our readers keep getting rich and varied advice, not just in print but also in our various other initiatives like social media and events, we will be regularly reviewing our editorial advisory board. The aim is for our readers to get access to a core group of advisors from our existing panel, and also a rotating group of advisors, who change every year. Are you up for the challenge? Itâ&#x20AC;&#x2122;s not for the fainthearted, but it is a platform to connect with the biggest and most dynamic SME community in the region! Get in touch with us if you are an industry guru who wants to give something back to the business community by sharing your expertise and advice. Mail ketaki@cpidubai.com. For more information on our editorial board members, visit www.smeadvisor.com

SME ABOUT TOWN ADCB MBA workshop <<<

Thought leadership On May 11th our friends at ADCB played host to AROUND 50 MBA students from Thunderbird University in the US. Formal presentations were on the agenda AND THEN THERE WAS A SURPRISE ELEMENT. Mike Byrne reports.

By the time the SME Advisor team arrived at ADCB’s headquarters in Abu Dhabi lunch had just finished and half the room looked ready to settle into an afternoon of content daydreaming – this was not going to be easy! How do you take three bankers and a room full of students and kick-start an interactive discussion? We had decided the day before that a topical panel discussion would serve better than a run-of-themill presentation. ADCB had chosen its finest for battle –Howard Gaunt, Corporate Commercial Banking Head; Murali Subramanian, Head of Transaction Banking; and Nilanjan Ray, Sr. Vice President, Head, SME Banking. SME Advisor Senior Editor,

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Ketaki Banga, took her position as moderator and so it began. Howard took the lead and dove straight in: “Who here has preconceived notions of the Middle East? Be honest! What we want to do today is to teach you not only about banking and the market here but also about the outside challenges that directly impact day-to-day business. It is our aim to send you back to the US with a more informed outlook than you might get from external media,” he said. Since regional unrest has dominated the headlines of late, it seemed a logical place to begin. Ketaki put it to the panel – “How has recent unrest in the region affected the UAE market and with this has there been any positive impact?” Nilanjan gave his team mates a nod and sat forward – he was going to take this! JUNE 2011

“If we are honest, it has been advantageous for business in this country – some individuals and companies have been shifting operations here from northern African states, either on a temporary or permanent basis,” he said. Having attended numerous business events it is not a secret that bankers are renowned for pontificating – but not this banker and not at this event – these guys were obviously determined to cover as much ground as possible! Taking no chances, the short time in hand, Ketaki fired out the next question: “Let’s move on to recession and recovery – how has that played out in the UAE, compared with Western markets?” This time Howard stepped up: “You hear people saying that when the US catches a cold, Canada catches the flu – well when the US catches a cold, this region catches pneumonia.” Laughter broke out – Howard’s personality was winning them over! “It wasn’t that the conditions here were necessarily ripe for a collapse but it was really more down to a loss of confidence – the collapse of Lehman Brothers stunned the region and it’s taken time for us to get back on our feet after being knocked down like that,” he comments. The panel decided that this response deserved a more detailed analysis – dollardirham speculation, frozen real estate projects, liquidity and finally, lending practices were all touched upon. Eyes were scanning the room, looking for signs of boredom,

tiredness and just plain old indifference, but no stragglers were spotted – with this Ketaki kept the momentum and shot the next question across the room: “How do you think corporate governance can shift from paper to practice in this region?” Murali smiled and straightened up: “The attitude here to corporate governance is changing ad it really is a process of evolution. It is the confidence in this system, rather than the transparency, which is evolving.” And what about the SME sector where alot of businesses are owned by expatriates – people are who used to giving such information in their own countries? “Even in the SME space there is a contagious affect – the attitude of why should they be asked to reveal financial information if the big corporates aren’t playing ball?” Having partnered with ADCB we know of their desire to educate the market – with this Ketaki put the question to the panel and offered the floor for further explanation: “We basically try and demonstrate that we are not just a bank and a provider of money, but also a provider of knowledge. The model of thought leadership and the model of providing customers and clients with what they need, as opposed to what they want, has a track record of success with other banks and we are making every effort to push this forward here,” said Howard. What better place to begin this education than with the next generation of bankers!

SME about town >>> DKV Training Open Week

Scott M. Kaufman

r e pow s i e g d e Knowl

end ross the globe sp n ac s ie n pa m co enses o that most Figures suggest % of their recurring monthly exp today’s in 70 companies between 35% to ess or failure of e on the ability of cc su e Th e. pl o their pe en hing et, dscape will oft tential of this ass s po competitive lan ed pp ta n u e of Lo ness th managers to har tt M. Kaufman, Founder and CEO o Sc according to mantelligence. Angeles-based Hu Kaufman was the keynote speaker at the fifth Training Open Week, which was organised by Dubai Knowledge Village (DKV), a member of TECOM Investments’ Education Cluster. His speech encompassed the theories of managerial and employee relationships and the necessity for businesses to begin analysing internal relationships. The combination of a new leadership style and organisational awareness is emerging as the secret of successful managers and companies, according to Kaufman. The event was held from 16th – 18th May at the DKV Conference Centre and was open to anyone seeking a new learning opportunity, from business professionals to the general public, including students. The Training Open Week included 20 workshops and seminars, focusing on diverse segments such as HR, marketing, sales, project management, strategy, leadership and personal development. DKV’s business partners included some very established and respected

Flashpoint seminars and workshops

training and human resource organisations, who led individual sessions at the event. In addition to training workshops, participants also had the chance to avail of networking with industry counterparts. Speaking on People Intelligence Movement: The Next Generation of Leadership, Kaufman revealed how the combination of a new leadership style and organisation awareness is emerging as the secret of successful managers and companies seeking to thrive in today’s highly competitive global business landscape. “Studies show that the Middle East has the highest number of senior executives which are driven by

“It’s very important to communicate this simple but vital point – if you don’t understand the why then the how doesn’t matter in trying to unlock the full potential of your people” -Scott M. Kaufman, Founder and CEO, Humantelligence JUNE 2011

profit, but are also trying to introduce this culture of gratitude into the workplace. The question surrounds the environment in the region and whether it will be culturally acceptable or not for such behaviour to be embraced in the near future,” he said. He elaborated by explaining to attendees: “It’s very important to communicate this simple but vital point – if you don’t understand the why then the how doesn’t matter in trying to unlock the full potential of your people,” he said. Dr Ayoub Kazim, Managing Director, Education Cluster – TECOM Investments, said: “The DKV Training Open Week reflects our sincere commitment to enhancing the region’s HR industry while simultaneously allowing local businesses and the community at large to gain from the expertise of our world-class business partners. This initiative provides economical learning options to individuals looking to take their professional advancement to the next level through enhancing or acquiring new skills.” DKV business partners who offered their expertise at the threeday event included: 10 Degrees North, Best Companies Group, Change Associates, DBM Arabian Gulf, Executive Skills Training, Innvobia, Knowledge Horizon, Neuroleadership Group, People Scope HR Consultancy, Perpetual Resources Group International, SMG, The Core Group and The Performance Factory. For further information on the event visit www.dkvevents.ae/ events/tow/SME ADVISOR MIDDLE EAST

SME about town TECOM SME builder <<<

The building blocks for success

SMEs need to think big and plan early by implementing an intellectual asset management system, according to Stephen Jiew, Senior Associate, Al Tamimi & Company.

Jiew was speaking at the TECOM SME Builder, an event organised to give owners of small and medium enterprises (SMEs) an opportunity to upgrade their business management skills. An initiative of TECOM’s Partner Development Management (PDM) department, TECOM SME Builder was held on 19th May at the Dubai Knowledge Village Conference Centre. Stephen Jiew said: “Intellectual assets form the most valuable component of successful companies in the world today. Think Coca Cola, BMW, Rolex or Virgin – their intellectual assets are the reasons why the market is willing to pay a vast premium over the book

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value of these companies. Never has it been more critical than now in this prolonged economic recovery period to harness one’s intellectual assets to differentiate your business in this ruthlessly competitive business landscape.” In addition to Stephen Jiew’s presentation on Intellectual asset management, the workshop included a segment on The human network effect in advancing innovation and entrepreneurship. The presentation was delivered by Karim Djerboa, Senior Manager of Global Field Operations and Strategic Alliances, Cisco Entrepreneur Institute, Cisco Systems Inc. “Given the cultural, economic and political specificities of each community, JUNE 2011

“Given the cultural, economic and political specificities of each community, there is no ‘one size fits all’ for entrepreneurship education. It is, therefore, important to ensure that the vehicle used to deliver the content and the technology facilitate innovation and are human centric.” -Karim Djerboa, Senior Manager of Global Field Operations and Strategic Alliances, Cisco Entrepreneur Institute, Cisco Systems Inc.

there is no ‘one size fits all’ for entrepreneurship education. It is, therefore, important to ensure that the vehicle used to deliver the content and the technology facilitate innovation and are human centric. “In essence, it must address the very local reality by the use of Web 2.0 technologies for instance, enabling entrepreneurs to have access to a blended way of learning (online access, in person and virtual facilitation and videos on demand). It must also offer the opportunity to access the human network, which builds the entrepreneurship ecosystem,” said Djerboa. In addition to SME owners, membership to TECOM SME Builder is open to those aiming to launch their own business. The tri-annual workshops touch on subjects that directly relate to daily operational issues and allow an immediate transfer of the knowledge gained into the business environment. The 14th edition of TECOM SME Builder was sponsored by Emirates NBD and Al Tamimi & Company. The workshop was organised in conjunction with participating experts from TECOM Investments’ business partners such as Pinnacle Asset & Wealth Management, Flagship Consultancy, The Referral Institute, SME Advisor ME, RealHR, Platinum CPD, Potential, Expressions, Envestors, Bayt.com and Innovabia.

Industry watch Employment <<<

Time for a change? When asked about a potential career change, more than 80% of Middle East professionals firmly stated they are looking to switch their career path, whereas, over 17% are clearly not willing to take the risk according to the latest online poll series conducted by job site Bayt.com. The results of the bayt.com Career Reinvention and the MENA Workplace poll showed that Middle East professionals would not switch to their dream career

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mostly because of financial considerations (23.9%) while16.8% blamed this inertia on their risk-averse personality or their fear of the unknown; 16.2% believed that in todayâ&#x20AC;&#x2122;s market companies would simply JUNE 2011

More figures revealed that 14.5% said it was due to a lack of training or education opportunities required to effect this change; 9.9% said the lack of access to jobs in the desired new career was the main problem

not take the risk of hiring them. More figures revealed that 14.5% said it was due to a lack of training or education opportunities required to effect this change; 9.9% said the lack of access to jobs in the desired new career was the main problem; and 9.4% stated that the move wasnâ&#x20AC;&#x2122;t likely to happen because of their lack of knowledge about job opportunities in the new career. Furthermore, 3.1% of the poll participants felt a shift in their career path is unlikely to happen because of culture and social prestige considerations and 6.2% said no change was necessary as they love their current jobs. When asked what new industry they would choose if a career switch was possible, 21.5% of

Industry watch

participants said oil and gas, 16.5% said telecom/IT,14.6% chose tourism and hospitality, 9.9% said financial services, 8.2% chose management consulting; 7% voted for advertising and marketing; 3.7% stated healthcare, while 1.2% chose publishing. However, 7% said they would not care to join any of the above stated industries and 3.7% said they were unsure as to what their new industry would be. Respondents were also asked what they feel most passionate about in their career, with 21.4% expressed that they are most passionate about their current job and another 21.4% said it was their current industry. 15.6% felt that their existing team and environment was an intrinsic factor, 8.3% said their current company was what motivated them to stay on and 5.1% indicated they didn’t want to leave because they appreciated working for their current manager. Nonetheless, a staggering 28.1% voted for none of the above elements. When asked what they are most dissatisfied about in their career, 20.5% indicated their current job, 20.1% indicated their current company, and 15.7% indicated their current manager – 9% indicated the industry itself was the main issue. Only 11.3% believed that their current team and environment were not working out for them and the rest (23.3%) said none of the above bothered them. Asked what would most motivate them to change careers, 25.8% firmly said a better salary would be a great incentive; 18.3% claimed an opportunity to start fresh in their dream career, 12.7% said additional training and development. 17.9 % look for a promise of long term stability while 8.1% look for a better company; 4.8% specified better management as an encouraging

“In general, managers are aware that in order to get the most out of their subordinates it is helpful to create the ideal working conditions for effective productivity. At the present time, we are increasingly seeing regional companies dedicating efforts to improving their staff’s working environment.” - Lama Ataya, Chief Marketing Officer, Bayt.com

reason; 10.2% would change to get a better workplace environment; 1.5% would look for more flexible hours, while only 0.7% felt that working with nicer employees was a main factor. The poll went on to ask the region’s participants where they would like to be careerwise in ten years. 27.9% said in a different career with a new job, company and industry. 24.1% felt they would be in the same industry and company but with a different job, and 22.6% believed having the same job in the same industry, but with a different company was something they could be doing in ten years. 16.6% said they could have the same job ten years from now, but in a different company and industry and a further 8.7% were not sure of what their future held for them. Participants were also asked if they had ever changed their career in the past – 42.4% of the respondents said no; 30.3% stated they have only once; 11% confirmed that they have already made the change twice; whereas 16.3% claimed they have switched their path more than twice in the span of their career. Respondents’ answers also varied when asked how often they changed their jobs. 31.5% stated they have never changed their job till date; 10.1% claimed to have switched jobs once every year or less; 15.1% stated once every two years; 14.3% said once every three years; 15.2% said every four to five years; and 9.5% claimed changing jobs every six to ten years. The rest of the respondents (4.2%) only changed every 11 to 15 years. “With the Career Reinvention poll we are seeking to further gain insights into what motivates regional professionals to stay in certain careers, which careers are most popular and what factors JUNE 2011

would induce MENA professionals to change careers altogether,” said Lama Ataya, Chief Marketing Officer, Bayt.com. “These results will help us at Bayt.com provide an even better platform for professionals pursuing a new and better professional career and employers seeking to source and retain top talent,” she added. When asked how often they intend to change jobs in the future, an amazing 49.1% stated they would hopefully never do that; 15.3% said they would do it once every four to five years, 11.6% claimed they would do it once every three years, 8.2% indicated once every two years, and 8.1% indicated once every six to ten years. Only 4.3% of the participants said they would change jobs once every year or less and 3.5% said they would change every 11 to 15 years. “We stand firmly by our belief that worthy working conditions not only benefit employees, but also increase their productivity, which in turn significantly benefits employers as well. In general, managers are aware that in order to get the most out of their subordinates it is helpful to create the ideal working conditions for effective productivity. At the present time, we are increasingly seeing regional companies dedicating efforts to improving their staff’s working environment, which in the long-run will prove intrinsically valuable to all parties,” Ataya concluded.

ABOUT: Data for the Career Reinvention and the MENA Workplace poll series was collected online between April 4th and May 9th, 2011, with a total of 13,361 participants from across the Middle East. This and other Middle East research, as well as information on Bayt. com’s classifieds, are available online at www.bayt.com

SME ADVISOR MIDDLE EAST

Industry watch Media <<<

The PR media love-hate relationship goes social!

(L-R) Oliver Blofeld, Managing Partner, Insight; James Mullan, Managing Partner, Insight; and Ben Smalley, Managing Director, MediaSource, at the launch of the Middle East Journalist Survey 2011

a recent survey suggests THAT THE age old saga CONTINUES. PICK YOUR TEAM! The traditional media in the Middle East has embraced the use of social media with 95% of the region’s journalists now using Facebook, Twitter and other social media networks, a survey has reveals. However, personal use - such as keeping in touch with family and friends - is the most popular reason for journalists’ use of social media, with just 60% using it as part of their daily working lives and only 35% valuing it as a source of news. The MediaSource/Insight Middle East Journalist Survey 2011 canvassed the opinions of 251 journalists working for Arabic and English-language print, broadcast and online media in 13 countries across the region, covering topics ranging from press releases, press conferences, PR practice, the sources journalists use for stories, and the current state of journalism in the region. “While social media’s importance is recognised and its influence is growing, the message is clear to the PR industry: ‘don’t ignore the traditional sources’,” said James Mullan, Joint Managing Partner of media training consultancy, Insight. “On the record briefings, press releases and eyewitness accounts are all rated much higher by the region’s media as sources of news.” Conducted every two years, the survey is designed to assist the PR industry by letting them

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There is, however, still room for improvement with irrelevant and badly targeted press releases still clogging up journalist’s inboxes across the Middle East. This continues to be the “most irritating practice” for both the Arabic and English media

- Ben Smalley, Managing Director of MediaSource

JUNE 2011

know what pleases and what annoys journalists with the way they receive information from agencies and in-house corporate communications teams. “This is the third time we have conducted the survey and certain interesting patterns are beginning to emerge,” Mr Mullan continued. “For instance, there has been a significant upswing in the rating by journalists of PR practitioners’ professionalism and there appear to be less no news press conferences taking place, and a better overall understanding of journalists’ needs. “Whether the economic downturn has forced the PR industry to sharpen up its act due to increased competition and pressure on budgets is open to debate, but journalists clearly believe they’re being served better by the regional PR industry.” There is, however, still room for improvement with irrelevant and badly targeted press releases still clogging up journalist’s inboxes across the Middle East. “This continues to be the “most irritating practice” for both the Arabic and English media, as it was in both of our previous surveys,” said Ben Smalley, Managing Director of MediaSource, which publishes the Middle East & North Africa Media Guide and represents global PR tool Mediadisk in the region. “The PR industry really needs to take this seriously as journalists are fed up having to trawl through material that is of absolutely no relevance to their publication or outlet. Given the tools that are currently available, there really is no

excuse for adopting a “scattergun approach” to press release distribution. One of our respondents summed it up well with the simple comment: ‘Photos sent to RADIO!’” Facebook is the most popular social media network with 59% of Arabic and 73% of English-language respondents saying their media outlets have a presence on the site, compared with just 16% (Arabic) and 29% (English) in 2009. Twitter is only used by 43% of the Arabic media and 50% of the Englishlanguage media, while YouTube is used by no more than a quarter of all journalists for professional purposes. The Arabic media has a better view of its own profession with 52% believing the quality of journalism in the region to be either “very good” or “fairly good”, compared with just 30% of the English-language media who feel the same. “Both our previous surveys generated a lot of discussion among PR professionals and journalists and we were invited by a number of agencies to present the findings to their staff,” stated Oliver Blofeld, managing partner, Insight. “The PR industry clearly values the opportunity to receive such honest, straightforward feedback from the region’s journalists and hopefully they are using the findings to improve the service they provide to the media.”

ABOUT: The full MediaSource/Insight Middle East Journalist Survey 2011 has been compiled as a 71-page report containing hundreds of direct quotes from the media which can be purchased online at www.middleeastmediaguide.com for USD 150, or by emailing requests to admin@ insightmiddleeast.com.

Corporate wellness Insurance <<<

Health is wealth Too busy to take care of yourself? Independent financial adviser Greg Pogonowski cautions against common illnesses and the potential losses that could result from them. This month, I thought it would be prudent for SME owners to step back a little, and think about themselves and their families. All too often, my clients tend to be so busy meeting the demands of their business, they rarely stop to think about themselves and what would happen to their business (and the livelihood it brings their families) should they become ill. So let’s look at the most common health issues that, if left neglected, can impact not just you but also your business. Because this region has a “young” population compared with the Western world, relevant figures are not readily available so I have used the UK as an example – this is because more people here are eating a Western diet than a traditional one

SME ADVISOR MIDDLE EAST

associated with this region, so this is what is coming. For the so-called “weaker sex”, women do pretty well. Men die sooner; they’re 70% more likely to die from cancers that affect both sexes and 60% more likely to develop them in the first place. Why is this? Is it down to genes? I don’t think so. If you look at the top ten health threats to men you’ll find that many can be prevented. Some can even be stopped in their tracks if you know the warning signs, have a few tests done by your doctor and make some lifestyle changes.

Heart disease The number one threat to men’s health is heart disease, killing over 50,000 men annually in the UK – one in five of all male deaths. Sadly, most are preventable. You’re at risk if you JUNE 2011

For the so-called “weaker sex”, women do pretty well. Men die sooner; they’re 70% more likely to die from cancers that affect both sexes and 60% more likely to develop them in the first place. Why is this? Is it down to genes? I don’t think so

are over 40, overweight, have high blood pressure and cholesterol, are a smoker, are diabetic (a big problem in this region) or have a family history of heart disease. Heart disease kills more women than any other cause. In 2008, more than 40,000 women in England died due to heart disease, and around 100,000 women have heart attacks every year. If you are over 40, overweight and “too busy” to exercise, at least take time off to visit your doctor who can assess your risk of heart disease.

Stroke Strokes cause more death in men than any single cancer and are the leading cause of disability. Most people think of strokes affecting only the elderly, but anyone can get one. Strokes are more common in men than women and the vast majority occur in people over the age of 45. You are more at risk of a stroke if you have high blood pressure and cholesterol, smoke, drink to excess, are overweight, diabetic, already have heart disease or have previously had a heart attack. For some reason, stroke is often regarded as a condition which mainly affects men. Not so. Stroke is the second biggest cause of women’s deaths. Women are one and a half times more likely to die from one. A stroke happens when the blood flow to the brain is interrupted by a blood clot blocking an artery. Some risk factors for stroke can’t be changed – for example you are more likely to have one as you age.

Lung cancer Lung cancer is the biggest cancer killer of men. Smoking causes 90% of lung cancer cases, though a family history of the disease, exposure to radon gas, air pollution (which is a big problem in Dubai), second-hand smoke and chemicals like asbestos can also cause it. The symptoms of lung cancer can include a persistent cough, shortness

Corporate wellness

of breath, wheezing, coughing up blood, chest pain, weight loss and fatigue. Lung cancer kills more women in the UK than any other cancer. It causes one in five of all female cancer deaths. Nine out of ten cases of lung cancer are caused by smoking.

Prostate cancer Prostate cancer is the most common cause of cancer in men. Each year approximately 35,000 men in the UK are diagnosed with prostate cancer and around 10,200 die from it, yet a recent survey found that 60% of men were unaware of the symptoms. Over 70% of new cases occur in men over the age of 65, and having a close family member who has had the disease makes it more likely you will get it too. Early symptoms may include the need to urinate often, passing urine slowly, discomfort while urinating, blood in urine, pain or stiffness in back, hips or pelvis. If you have any of these symptoms, see your doctor. There is no one way to prevent prostate cancer.

Liver disease Alcoholic liver disease is a group of illnesses which develop when the liver becomes damaged due to heavy drinking including fatty liver, hepatitis and cirrhosis. It’s a fatal mistake to think that binge drinkers are most at risk from liver disease. People most at risk are those who drink over the limit on a regular basis over the years. Alcoholic liver disease does not usually cause any symptoms until the liver has been seriously damaged. When this happens, it can cause nausea, weight loss, and yellow coloration of eyes and skin.

Alzheimer’s and dementia Nervous system disorders account for 5% of all male deaths. The early signs of dementia include an

Greg Pogonowski

Many medical conditions can lay claim to be a “silent killer”, but none more so than ovarian cancer. The symptoms of early disease are often silent or ignored by busy women, when treatment is most effective against the cancer

inability to recall recent events, failure to recognise familiar faces and names, general confusion about everyday matters, language problems and mood and behaviour problems. Age is the biggest risk factor for dementia, with about one in 14 people over the age of 65 and one in six people over 80 having some type of dementia. There is no way to prevent dementia, but generally speaking maintaining a healthy lifestyle – exercising, not smoking, keeping socially and mentally active – can help protect against both mental and physical decline. So turn to the crossword or Sudoku page now! More women die from dementia than men simply because they are more likely to live longer. The biggest risk factor for dementia, including Alzheimer’s disease, is ageing. Having a close family member with dementia is an additional risk factor. You can’t stop yourself from ageing, or change your genes (not yet anyway).

Breast cancer Breast cancer is the most common cancer. Advances in medical research, screening and new treatments is the reason why breast cancer is not higher up in the list. All women aged between 40 to 70 should be screened. Screening is by breast mammogram – a bit like an X-ray. If you are not being screened, see your doctor to find out why not. If you have a close family member who has had breast cancer before the age of 50, you should inform your doctor, as a minority of cases are caused by a gene which can run in families. All women should learn what their breasts look and feel like normally, so they can notice any changes in the shape, size and texture which occur. JUNE 2011

Ovarian cancer Many medical conditions can lay claim to be a “silent killer”, but none more so than ovarian cancer. The symptoms of early disease are often silent or ignored by busy women, when treatment is most effective against the cancer. It is often mistaken by women (and some doctors) for irritable bowel syndrome. Women who have used the contraceptive pill and breast fed after pregnancy have a lower risk of ovarian cancer. A small minority of women have inherited genes which increases their risk of ovarian cancer. You should be screened if you have a close relative who has had the disease coupled with another who has had breast cancer before the age of 50, from the same side of the family.

The health file So, quit or reduce smoking; improve your diet to include fruit, vegetables and fibre; avoid foods containing saturated and trans fats; cut back on salt in your food and limit your alcohol intake. Try to maintain a healthy weight and incorporate some exercise into your routine. To reduce your risk, check your blood pressure and cholesterol levels. But, at the end of the day, there is only so much you can do. So I also recommend that you should at least insure against the diagnosis of all of the aforementioned (and more), whether this leads to death or full recovery or anything in between. For one thing, whatever the outcome, there is usually a lifestyle change and it impacts your work as well, and this always costs money. So, as a business owner, consider the option of a critical illness benefit policy.

ABOUT: Greg Pogonowski is an independent financial adviser with over 27 years experience in the financial services profession, and he works with Pinnacle Asset & Wealth Management. He can be contacted at greg@yourmoney-matters.com, or by calling 050 8769035.

SME ADVISOR MIDDLE EAST

Corporate fitness Summer travels <<<

Getting that check-up before you check-in This month occupational health specialist Dr. Sarah Peeters talks about preparations before heading off for a much needed vacation.

It’s June again. We can feel the temperatures rising. The days are getting longer. And the air-conditioning is turned on high. Yes, spring is back, and turning into summer quickly. And we all know what that means – we’re planning our annual holiday! Whether it’s going home with the children or travelling the world with family or friends, we will all remember sun screen, visa, foreign money and a guide book. However, what most people tend to overlook is the medical aspect to travelling. Most of us don’t take it any further than rushing to the pharmacy just before leaving to buy some anti-diarrheal medication. Because let’s face it, when we think of travelling, most of us think about traveller’s diarrhea. But do you really want to risk falling ill with some nasty or perhaps even lethal disease while travelling abroad? Do you really want to face the difficulties with local healthcare or insurance companies? And when you’re taking your children along, do you really want to see them suffer? With so many diseases being preventable, why not take some

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time before travelling to get prepared? Read on and find a few steps to make your preparation easier. The first Dr. Sarah Peeters thing to do is collect some information on the country you’re going to discover and on the health issues that may occur. There are many travel health Websites but if you’re looking for reliable and up to date information, visit the Website of the Centres for Disease Control and Prevention (www.cdc.gov/travel). It is accessible to anyone, easy to navigate and you will most definitely find useful information on your country of destination. And more specifically, it will indicate per country the required or recommended vaccinations and need for malaria prophylaxis. The next step is very easy. Find your vaccination record or book. You know now which vaccines are recommended. Of course this doesn’t mean you need to have all these shots before this trip. Some vaccinations need repeating on a regular

JUNE 2011

basis to secure protection. Other vaccines will give you lifelong protection once the full schedule is administered. But don’t panic, you don’t need to be the expert here. This is where the next step comes in. Once you have read up on the information and you have retrieved your vaccination record, it’s time to book an appointment with your family doctor or with a travel health clinic. Not only will they help determine if you need any vaccinations, they will also check your general health and your medical history. Are you fit to travel? Are there any issues in your medical history that might cause problems when travelling? Do you know your blood group and are you allergic to anything? Do you need specific medication such as anti-malaria tablets? Are you taking enough of your regular medication to last for the duration of the trip – plus some more? After all, you never know if you might get caught in a strike at the airport or miss your train or bus home. Do you know how to assemble a travel first aid kit? Are you pregnant? Do you need to take any special precautions when travelling with children? Of course, you can always skip the first step and ask your physician for the country specific information. They will be more than happy to guide you and provide you with printouts or travel health leaflets. So there you have it, three

steps to remember when planning a holiday. However, make sure you don’t leave all of this to the last minute. Some vaccines need to be administered at least ten days before travelling. Other vaccines might require multiple shots before they start to work. And when it comes to purchasing your medication or assembling your travel first aid kit, you don’t want to postpone this either since Dubai often faces a shortage of certain medicines. But before I wish you all a great holiday, two more very last minute tips – carry a small stock of your regular or daily medication in your hand luggage to cover a few days just in case your luggage doesn’t arrive, especially if you’re travelling with small children. And in case you have any specific health problems, ask your physician to write you a letter to explain what you have and what medication you’re taking and take this with you wherever you go. That’s it from me. Remember, to be safe, healthy and well and to thoroughly enjoy your holiday! Now I’m off to prepare for mine! Where’s my vaccination book?

ABOUT: Dr. Sarah Peeters is a trained occupational health specialist physician, based in Dubai. She received her training at the Catholic University of Leuven in Belgium, in 1990 and has since been working in Belgium and Dubai as a specialist in occupational health and safety. She has been serving a vast number of different small to large companies, both corporate and industrial, which allowed her to gain extensive experience in her field. The OHS areas of specific interest to her are offshore health, travel health and office ergonomics. For more information conatct Dr. Sarah at occmeddubai@hotmail.com or call +971 (0) 50 859918.

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Women at work: Dress for success And to hide a multitude of sins. In the second part of this series, Guillaume Mariole, from Ignite Fitness & Wellness, advises women executives on power dressing for business and for their body type.

Last month we covered top tips for men and this month, saving the best till last, we have tips for the ladies. So, start with picking the letter that your body shape most resembles (no cheating!) and then all you have to do is hit the mall.

H shape Shoulders, waist and hips have virtually the same dimensions. Jackets with soft shoulders minimise your shoulders’ sharp angles. A wrap dress gives the illusion of an indented waist. A belted outfit also makes the waist look smaller in relation to your shoulders and hips. A shape Shoulders are considerably smaller than waist and hips. Balance this shape by adding width and visual interest to the upper body with brightly coloured scarves or wide and detailed collars. V shape Funnel or cone-like shoulders are the widest part of the body,

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with tapered hips and thin legs. Add volume to the lower part of the body with fuller skirts or wide-legged trousers. Raglan-sleeve tops minimise the oversized shoulders of this silhouette.

O shape Rounded mid-section is much larger than shoulders or hips. High collars elongate this silhouette. Avoid trousers with cuffed hems. Choose diagonal or vertical patterns as well as monochromatic colours to give you a slimming effect. X and S shapes Both silhouettes have indented waists with shoulders and hips of similar proportions. The difference between the two is that X shapes are more angular while S shapes are curvier. These are the two most balanced body types so they can carry most styles. S shapes are flattered by fluid fabrics that drape well while X JUNE 2011

shapes can carry more taut fabrics. But – if you want to keep it conservative by downplaying your curves – don’t wear belts, scarves or fitted waistbands.

For all body types: Dress to your strengths Remember to highlight your positive attributes and minimise those less so. The most flattering colours are darks but in our sunny climes, it’s more fun to inject a little colour so stick with darker bottoms and lighter or patterns on top. Accessorise, accessorise, accessorise. In Dubai, there is access to a multitude of fabulous shoe and handbag brands, not to mention the bling on offer! It’s easy to jazz up your office attire for the evenings by adding some cool jewels, a light wrap and some hot heels.

Guillaume Mariole

When travelling, make smart choices with the fabrics you take – choose durable, softstretch knit fabrics for comfort and ease. Remember that comfort and poise in the workplace are crucial, so your clothes must both fit and flatter well. Of course, if you want to make a multitude of sins disappear instead of just hide them, get started on a fitness regime!

ABOUT: Guillaume Mariole is the Managing Director of Ignite fitness & wellness. For more information visit www.ignitewellness.com or call +971 (0) 4 448 7142 or mail info@ignite-wellness.com

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