The Business Times

Tuesday, May 5, 2009

There are two elements which must be aligned to continue to stay relevant in the current economic situation. Firstly, stay true to your course, and secondly, adapt to the changing environment.

Each time we catch a cold, we build up our immunity and become stronger. If anyone is expecting the economy to return to the previous state, it is not going to happen. The economy will recover but with a changing times. Stay true to your course. As much as many would be tempted to go after the lower hanging fruits to ride out the rough times, it may well have a reverse effect and degenerate the business viability. Staying close to the fundamentals allow companies to excel on their core competencies. It is in these tough times that customers stay with their trusted vendors. Work on repeated business to increase customer orders.

Adapt to the changing environment. Each time we build greater immunity, we come out wiser and stronger for the experience. Take the opportunity to improve and evolve on the quality elements of the products and services we carry. Develop a new “vaccine” to help your customers weather the viral storm- in these difficult times, the same dollar is spent on solutions that is helping you to create a better business.

The Business Times

Tuesday, May 26, 2009

I APPLAUD the government for working fast and introducing its timely stimulus package in Singapore. However, the follow-through at this point is still weak. Banks remain ver conservative in lending working capital to the SMEs, fearing the risks of default. it has become more difficult to secure corporate loans in the past six months. Even more frustrating is the fact that banks are not willing to reveal the reasons for rejecting a loan application.

Perhaps, the stimulus came on too fast and the processes to support the good intentions are not in place. Banks, training institutions and other bodies that form the supporting pillars need to step up their functions to enable the stimulus package to work. A second stimulus package will not help SMEs any more than improving the follow-through to make the best use of what is already offered.

The Business Times

Tuesday, June 2, 2009

In difficult times it is usual for smaller businesses to get together through loose alliances, or sometimes tighter consortiums for greater strength. Naturally, they look for players in the same industry. SMEs in the same area have a common agenda, so it would seem easy to get together.

But SMEs in the same industry not only have common ideas- they also have common constraints. Their competitive mindsets limit exploration. So when such minds meet, refreshing ideas are not a high probability.

Instead, SMEs should look to connect with those in other industries across the supply chain and outside the comfort zone. When SMEs are able to establish what works well in a different industry and how the rules of the game can be adopted on their home ground, a refreshing notion will naturally evolve. Something different can be experimented with. Mixing with boys in the same camp will not result in a breakthrough.

The Business Times

Tuesday, July 21, 2009

AS today’s business cycles are challengingly shortened and varied, the profile of today’s successful business leader does not readily present a set of criteria for the selection of his successor.

The crucial moment of succession and the incumbent state of dynamics are two crucial aspects to consider when handing over the baton. The better game plan is to keep a council of second-in-charge with a diverse base of talents. Each member can be put to the test and considered for succession; anointment of the deputy leader to succeed at the helm should not be guaranteed. As the business moves through changing paradigms, the corresponding set of leadership skills become essential to lead the organization. Finding a “general manager” to lead the organization would no longer suffice for today’s SMEs to succeed.

The Business Times

Tuesday, October 27, 2009

Cheaper, better, faster – a powerful mantra. But this must be internalised and shared by the management and the work force. I am convinced that the Singapore work force has become more resilient after having emerged from several crises in the past two decades.

Our workers thrive on being better and faster. This reminds me of an African story: “Every morning the lion wakes up and knows that if it does not run faster than the slowest gazelle, it will starve. At the same time, the gazelle wakes up in the morning, and it knows that it must run faster than the fastest lion, otherwise it will perish.” Regardless of whether we are a lion or a gazelle, when we wake up each morning we have got to be running better and faster.

Now, being “cheaper” has a different set of influencing factors. The cost of living in Singapore does not allow us to be cheaper. We have pushed up the cost of labour and other production factors too high too fast, so that even MNCs are moving out of our country. Local SMEs are competing aggressively among ourselves, as there are not enough opportunities to go around.

Hence, the fate of SMEs is in the balance. Our decision makers have to embrace a hybrid model to buy local, as well as going for brand names. This is one of the ways to become cheaper, better and faster. Give SMEs a chance to prove ourselves.