Make timely moves to stay competitive 0 289

By Dr. Kishu Gomes
Prominent business leader, Corporate Icon & Management Consultant, Kishu
Gomes was the Chief of Sri Lanka Tourism (SLTDA & SLTPB) after leading a
multinational operation in Sri Lanka for over 2 decades. He continues to consult
businesses and corporates to take a transformational journey.

Many things cause organizational change. Covid19 is one big example only. Other than
pandemics or epidemics, economic downturns, tougher trading conditions, finance cost
escalation, technological changes, competitive pressures, including mergers and
acquisitions, customer pressure, particularly shifting markets, government legislation or
regulatory changes etc.
All organizations are in flux: changing their focuses, expanding or contracting their activities, and rethinking their products and services. Most organizations more than ten years old look nothing like they did even five years ago. Pre and post-COVID 19 are two different worlds altogether. And it is likely that in the next year or two organizations will not look as they do today.

In this context, managers have to be able to introduce and manage change to ensure
the organizational objectives of change are met, and they have to ensure that they gain
the commitment of their people, both during and after implementation. Often, at the
same time, they also have to ensure that business continues as usual.
Resistance to change may be active or passive, overt or covert, individual or organized,
aggressive or timid, and on occasions totally justified. Organizational change
management takes into consideration both the processes and tools that managers use
to make changes at an organizational level. Most organizations want change
implemented with the least resistance and with the most buy-in as possible. For
this to occur, change must be applied with a structured approach so that
transition from one type of behavior to another will be smooth.

As the speed of change continues to increase, change management is a fundamental competency needed by managers, supervisors, Human Resources staff, and organization leaders. To tap your wisdom, my recent survey about change management afforded me the opportunity to consolidate hundreds of years of experience in change management. Here, in your… Change is possible; the need for change is increasing; change capability is necessary for organizations that will succeed in the future. Change management challenges organizations to succeed during times of great change. Employees love to stay in their comfort zone because it is familiar and they know what their expectations are. Many employees fear change and the manager has the responsibility to help employees move through the change process. Managers need to develop themselves as a role model for change and create an environment where all of their employees will get aboard and be willing to make the changes that are needed. It takes a smart and intuitive manager to manage change in any business organization. In order for a manager to effectively manage change in the business setting, they need to develop an understanding of how employees react to change. Every employee will have a different view of change and what their reaction to change will be. It is important that the manager stays visible and is always willing to jump in and help the employees manage change. In order to be an effective manager of change, the employees must continue to feel valued and respected by their manager. If a manager helps the employees through the process of learning to let go of the old way of doing things, they can help the employee adjust to the new changes in their working environment.

Deal with resistance
When a manager is facilitating change in the business world, they need to be
aware and acknowledge that resistance to change is normal and common.

Smart managers will recognize that resistance to change can actually be viewed as a positive sign that the employees are involved with the changes that are occurring in their working environment. If employees do not believe in their managers and lack trust in their decisions or there have been explanations of the reasons for change and how it will benefit the employees, that manager will have difficulty managing any changes that need to be implemented.
Another effective tool for a manager to use to implement change in the business setting
is to involve the employees in the decisions that are being made to change their working
environment. This is a method to help the employees feel valued and more motivated
to go along with the implementation of the changes. This becomes a win-win situation
for the organization, the manager, and all of the employees. Managers that involve their
employees and let them become part of the change will have an easier road for
acceptance from the employees.

Communication is the manager’s best friend. This is how the manager prepares the employees for the changes and can clearly clarify the expectations and expected outcomes. The manager is the individual that clearly can communicate the rationale for the change and answer the employee’s questions and stress the importance for the change to occur. Managers need to remain positive and upbeat and show the employees they are energized to make the changes happen. There are always some risks when changes are being initiated. The manager needs to be ready for the potential negative effects of any changes and have a plan to handle them. If mistakes occur along the way, then this is the opportunity for the manager and their employees to learn from the mistakes and move forward. Organizations that have a talented and effective manager will be able to handle the changes that need to occur to keep them competitive in their industry.

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BiZnomics – Global Outfront 0 221

By: BiZnomics Special Economic Correspondent

Wonderful Princess Diana

BiZnomics out-front- Diana- 1

Saturday, 31st August 2019 marked the 22nd Death Anniversary of Lady Diana, Princess of Wales. People around the world honourd her by remembering the legacy she left behind as a Humanitarian and Women’s Activist. Diana born in 1961 became an influential personality of the Royal family when she married Prince Charles at the age of 20.  After being married for 15 years Princess Diana and Prince Charles divorced ending the fair tail. One year later she died in a controversial and much talked about motor car accident in Paris with her boyfriend Dodi Al Fayed.

She worked with numerous humanitarian agencies and charities and among them her work on anti-land mind campaign in Angola, Sri Lanka and Bosnia stand out as significant contributions to a world plagued with violence. Diana travelled to many countries visiting patient suffering from Leprosy, Cancer and Aids. Akorn Children’s Hospitals a well-known charity in UK that provided care to the children wrote “today we remember the very wonderful Princes Diana who did so much for so many”.

 

HONG KONG WORRIES

BiZnomics-note-pad-Hogkong-worries

Chinese officials announced that Emergency Regulations Ordinance which was originally introduced by British in 1922 in case of emergency or public danger could be implemented if need arises. Market analyst still view that there is a low probability for such as eventuality but haven’t ruled out as anti-government protesters turn increasingly violent in recent weeks, disrupting this buoyant economy.  The provisions of the Law include arrests, property ceases, deportations, control of the port and the power to restrict means of communication. In an extreme scenario the government even cut off the internet. If the emergency law is triggered economic damage is considered significant.

Most of the China’s biggest firms have listed in Hong Kong often as a springboard to global expansion of businesses. The Chinese also uses the Hong Kong currency, equity and debt markets to attract foreign funds while international companies use Hong Kong as a launching pad for their expansion into mainland China. The bulk of Foreign Direct Investments in china continues to be channelled through Hong Kong, making it a vital cog in global capital markets. Chinese companies have raised USD 64 billion globally – almost the 3rd of the worldwide capital this year via initial public offerings. Out of this sum USD 35 billion was raised in Hong Kong whereas USD 19.7 billion came from listings in Shanghai and Schengen.

 

G-7 – A Failed Summit

G7--Summit-2019--BiZnomics

7 largest advanced economies in the world, popularly known as the Group of Seven (G-7) met in France in August 2019 was largely considered a failed summit. The US – Europe dispute over US trade war with China was not a topic in this discussion. The President Macron’s attempt to push US and Iran to initiate a dialogue by inviting Iranian Foreign Ministers was not bringing intended results, as proposal for a follow-up meeting with President Trump and Iranian President Hassan Rahuhani was squashed. The proposals to re-admit Russia was not supported by leaders of Britain, Germany and Canada. Thus the summit had failed in all aspects of its intentions.

 

BREXIT DILEMMA

UK Prime Minister Boris Johnson suffered a major blow to his authority on Wednesday when MPs voted against the no deal BREXIT.

It is not clear whether a political consensus will reach ultimately to go for a snap election to solve the crisis.

Prime Minister Boris Johnson says that “I would rather be dead in a ditch than ask for extension” speaking at a Police Training Centre after his successive defeats in Parliament. What is interesting to note is that the UK Parliament passed legislation to delay BREXIT and also blocked the call for an early election by the Prime Minister, even though the UK Parliament passed the BREXIT extension bill initially.  Now as it stand any extension to the departure date of 31st October 2019 could also require the approval of the remaining 27 EU member states. The Prime Minister’s call for a General Election too failed to get the 2/3 support of the House of Commons, leaving Britain in state of flux and disarray.

 

Hurricane Dorian threatens US after devastating the Bahamas

Hurricane Dorian is one of the Strongest Hurricane ever to hit the Bahama’s wiped out all its neighbourhood. Hurricane Dorian developed from a tropical wave on 29th August 2019 as it intensified into a category 4 major hurricane, on the following day it reached category 5 leaking one minute sustained winds of 185 mph (295 km). Dorian is the strongest tropical storm to impact Bahamas.

Hurricane-Dorian--BiZnomics-note-padHowever, Dorian had weakened it’s intensity to category 2 by the 02nd September but regained its momentum ending up as a category 3 hurricane by 5th September before weakening to category 1 intensity on 6th September. This swing in devastation could save the USA from major economic loss and loss of lives.

 

FIRE ON AMAZON RAIN FOREST

Amazon rain forest considered to be the world’s largest rain forest and world buffer in absorbing carbon dioxide and releasing oxygen. Amazon rainforest has long been recognized as a repository of ecological services not only for local tribes and communities, but also for the rest of the world. Thus making it an important global asset.

Amason-fire--Biznomics-note-padThe unprecedented scale of fires have come up throughout Brazil this year intensifying the damage in August. Estimated sum of 85,000 fires so far this year has taken place. Experts says that deforestation and a practise cause-and-burn are to blame most of the fires. People cut down patches of the forest, allow the area to dry out then set the remains ablaze to make room home for agricultural and other developments. They might also set fires to replenish the soil and encourage the growth of fosters for cattle. Brazil who is the top exporter of beef uses the forest for grazing.

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Whither Goes the Real Estate Market? Comments Off on Whither Goes the Real Estate Market? 640

 BY T.V. PERERA

The real estate sector is one of the most internationally renowned sectors. In India, the real estate sector is rated the second major sector following agriculture. Until around mid last year the real estate sector in Sri Lanka had been a prospective business investment with good returns.  Uncertainity, however, which set in the property market resulted in the residential sector taking a declining trend with many construction projects being on hold, property developers facing difficulties in re-paying their loans, and some even ending bankrupt. 

While property developers are weighed down, being unable to earn expected profits, those who buy apartments to sell them at gains are saddled with cost excursion. In Sri Lanka, land prices keep rising year after year. The Colombo District Land Price Index compiled by the Central Bank reached 132.2 during the first half of 2019 recording an increase of 13.6% compared to the first half of 2018. The sub-indices of land price, namely Residential, Commercial and Industrial have contributed to this increase. The averge price of a residential lot was up 15.3% in 2018 and in Colombo, by 15.5%. 

There is evidently a bubble in the market when buying a property with intention to sell it at a higher price although not on a very high scale in Sri Lanka, due to land prices constantly rising.  At some point of time this bubble will surely burst where none of the apartments could be sold. 

The subdued economic performance which resulted in the drop in the real estate sector is attributed to weak domestic demand, continued tightening in monetary conditions, government consumption spending, stagnant fixed investment, and lower net exports. 

The tightening monetary policy enforced on the recommendation of the IMF was one cause that led to drag down domestic demand and investments, and further,  inconsistent economic policies driven by instability adversely affected public and private sector investments, the key drivers of economic growth.

The real estate sector, which is described as property consisting land and the buildings on it as well as the natural resources including crops, water, and mineral deposits, is linked with the overall performance of the economy. Hence fluctuations within the sector magnify ups and downs of the overall economy.  As a result of this link, large movements in the real estate market tend to amplify fluctuations in the overall economy in addition to potentially destabilising the financial system. An example of this is the financial crisis where the real estate market had vast and disasterous effects on the overall economy on a global scale. 

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