Commentary

While it may not be earthquakes or tsunami’s that Singapore businesses face, flash flooding, typhoons and strong winds are all natural disasters that have hit Singapore’s shores, having the potential to create damage to property, stock, client documentation and information all common within a facet of industries and the potential for loss of thousands of dollars is very real.

The end of the year and the beginning of the next is the usual time for predictions and trend-spotting. For the mobile space, the situation is a little bit easier, because there are already so many different and fascinating ways that mobile is being used in Singapore that they point use clearly to what is going to happen in the coming year.

Tie me with rope – Now ask me to be innovative! Unfortunately, in Singapore as in other countries, many organisations that have embraced the innovation initiative have done so in an entirely predictable manner, mostly with entirely predictable results. Almost without exception the innovation department will be bound with red tape and underpinned by a stage gate analysis tool steeped in accounting nonsense and surrounded by naysayers most of whom find it easier to kill rather than embrace new ideas. Remember, people resist change. It’s far easier and safer for people to keep their heads below the parapet and do nothing. Bound with such encumbrances, why would anybody be interested in being “out there”? It’s just too hard. Business Plans never do work Believe it or not, most business plans fail to deliver what was expected. What they do achieve however is to start you on a journey of innovation and discovery where the end point is seldom the initial target. Interestingly, the failures are usually championed by people with great tenacity but tunnel vision, people who have difficulty in refocusing their endeavours when their ideas are not working. The mindset that persistence will ultimately win is simply flawed as no amount of persistence will turn a bad idea into a good one. Hence the suggestion that “Fast Failure” is a good mindset with which to explore new horizons. The good entrepreneur is one who can see when things are not working and with the backing of some money and a good team can re-direct efforts to where the target really is. This is the sort of open mindedness that is essential in any good entrepreneur or innovator. But do we give our people this freedom? Probably not! What is your Return on Investment (ROI) in Innovation? The above is a great question but one that is seldom asked for fear of learning the truth. Too often the ROI is near zero but “hope” still prevails. One Australia Company has spent over $500k on an innovation department that has yet to produce a single outcome. No doubt there are many more such companies. The initiative is to be applauded, but the failure is not. If a full time innovation department is not producing tangible outcomes and real ROI within 18 months at the most, then it is likely the model is flawed. The simple solution is not found in persistence, but in changing the model. “If you wish to think differently, then start by doing it differently”. Avoiding Risk One risk with a radical innovation model may be that the resulting ideas and outcomes are not seen as “core business” and thus need to be discarded. Indeed so common is the practise of discarding non-core activities that there are complete businesses that do nothing more than collect and commercialise so called “Orphan Technologies” that have been discarded by larger companies as non-core. It beggars belief that this mind set still prevails especially in the light of some classic successes. NOKIA, the company that essentially “owned” the cell phone business before Apple, was in the lumber industry before it decided to re-invent itself and become the number one cell phone maker. IBM, or Big Blue, the supplier of major computer systems in days when computer centres occupied entire floors, one day came to the realisation that the personal computer may be a new horizon. This was something quite new to them and their major systems engineering thinkers. In order to implement the PC development and avoid the risk to the “mother ship” if this PC was just a “flash in the pan” fad and thus a potential threat to their brand, and to avoid the nightmare that an in-house development would have meant. IBM took a novel approach. Rather than doing the development in-house”, a development that would have taken a decade or more with all the internal bureaucracy and inertia of IBM, instead they simply put a small team together, put them in a separate building, gave them an objective and let them at it. The outcome was the IBM PC, developed and delivered in just 12 months. We might call this the “outrigger” model. The “Outrigger” model has a “lot of legs” Given the right person to lead the charge, some freedom to operate and some budget, almost without doubt the seed of an idea or opportunity will soon grow into a profitable outcome. The key to success is to identify a new initiative, put a small team together, fund them and set them adrift to survive or succumb. Let them be an “outrigger” to your core business so they can do no harm to the “mother ship” or the brand if they fail. The cost is probably far less than funding an innovation bureaucracy, the risk is minimal, but the likelihood of success is high. There is a clear message here! If you are looking to get a different outcome you need to provide a different approach. Perhaps the outrigger model presents one possibility!

So you’ve hit viral nirvana with a video or story or promotion or contest that is so intriguing, so electrifying, that people are flocking to your website. Now what? Here are a few pointers for what to do in Singapore to keep those people coming back. Feed them Never underestimate the power of conversational currency. People have always loved to have things to talk about, and that has only intensified in the digital age. Give them plenty of content to work with. At VolvoCars.com, visitors can watch video extracts from LIV magazine about some of the world’s most fascinating people and places, and experience music from Sweden’s up and coming bands. In advance of the launch of the all new Volvo S60 last year, we weren’t permitted to show photos of the actual car, which was to remains secret until the debut; instead we created a two-part video documentary about a Turkish painter, Esref Armagnan, who, blind since birth, was invited to experience the car via touch and reproduce his image of it in a painting. Thanks to viral spread, tens of thousands of people viewed both videos, and the painting was subsequently sold, with proceeds benefiting the World Blind Union. Put them at the center of the action Mountain Dew’s DEWmocracy was a seven-stage, yearlong program that invited thousands of the soft drink’s most loyal fans to create a new flavor. Using a variety of social networks, including Twitter, Facebook, and YouTube, the promotion invited participants in every stage of development, from flavor and color to naming and package design. When the three new products voted in were ready to hit store shelves, the online fan base was even invited to collaborate in creating the television ads. Soften the hard sell Even when the intent of the site is commercial, it typically is better to let the brand or product be a supporting player rather than taking on the star role. Schick sponsored “Clean Break”, an online action series centered on sports that, like the new Schick Hydro razor, deliver “unexpected hydration” (think surfing, wakeboarding and river rafting). The focus was on two athletic buddies, Brady and J.J., and their sporting adventures. Not a razor in sight. Viewers came back to the YouTube channel to catch the latest episode, not to learn about male grooming, but Schick’s messages still made it through. Teach them Today’s consumers are hungry for information – especially when it makes life easier or more satisfying. At Kraftrecipes.com, visitors can attend “cooking school”, watching videos with step-by-step recipes and tips, and even inputting ingredients they have on hand in order to call up recipes that feature those items. In the Community section, cooks can exchange recipes, upload images of their favorite dishes, join discussion groups, and post their own blog essays. The trick is to combine elements in such a way as to create a site that is both “sticky” (keeping people there) and “bouncy” (making it easy for them to share content with others). That’s what keeps the buzz alive.

Do you think Andy Warhol’s “fifteen minutes” opinion is still valid in this day and age? Well, the future is here so let’s give the expression an acid test, shall we?

When I was a student at the University of Wisconsin-Madison, I have often heard my business professors say that companies must continue to invest in marketing even during a recession because that will help them come out of the recession stronger than ever. I must admit I was a bit skeptical. I was thinking to myself, "Really? Do these academics know what they are talking about? Spend more money in a recession? That's counter intuitive." Many, many years later, I realised that I have been taught by some very smart professors in that university because I have seen the proof with my own eyes. The last global financial crisis that was precipitated by the fall of Lehman Brothers caused many of my clients to see a sharp drop in business. The average fall was around 30% but some clients experienced drops of up to 80%. I remembered having breakfast with one of our clients to discuss the next step in his rebranding project. This CEO looked distracted and he was frowning more than usual so I asked him what's wrong? Is he worried about the business? He told me (still frowning heavily) that business has dropped about 30% but he's not worried about that because he expects the market to rebound in 2 years but what is giving him sleepless nights is how he can make full use of the slowdown to ensure that when the economy picks up again, his business will pick up even faster than the rest of his competitors. I asked him, "What do you have in mind?" And this CEO told me, "You know we are already doing a rebranding project with your firm because I now have more time to work with you guys to iron out the flaws in my corporate branding strategy. I don't know what they are but I know they are there. It's your job to find out and help me improve the brand so that when the economy picks up, I have a better brand to fight with my competitors. But that is just one thing! I also need to figure out how to prepare my engineering team and my marketing team better. I am cracking my head to see what kind of training programmes or courses I can send them to. And I am also trying to hire more people now, put them on whatever projects we have so that by the time we get new projects, they will be ready." I am rarely speechless. That morning was one of those rare occasions that I was speechless. Instead of cutting back, this company is investing in rebranding the company and retraining its engineering and marketing teams. But this company wasn't unique. Among my clients, many were doing that - they were investing in things or competencies that will help them compete better when the economy picks up. One client decided to replace its entire IT infrastructure with a state-of-the-art ERP system that is able to give management and the sales team real time information on inventory, sales, and each geographic market's performance while they are on the go. One client decided to hire an additional 100 people because according to them, a recession is the best time to grab talent and anchor them to the company. One client decided that the recession is the best time to do cross-training so that their people can learn how to do each other's jobs which according to the client increased productivity and reduced errors. There are many such cases from among my clients and you know what? These companies emerged from the recession much stronger. Some of them grew by as much as 250% post-recession. Some have managed to topple their long-time rivals. Some are now No. 1 in their key markets. It was an incredible thing to watch. And as their brand consultant, I had a front row seat. I watched them from the inside out. The Winning Difference Now that we are facing the prospect of another global recession, it is time to take stock of what you have, and what is lacking in your company. Then, decide on what you want to fix and what areas you want to pour investments into. All of this seems to make sense but how come only some companies are doing it. What is the key difference between companies that do it and companies that don't? It has nothing to do with money. Many of the companies who don't do it are cash-rich companies, mind you. The difference is actually the mindset of the CEO. Companies that invest during a recession and win are companies with CEOs that have a positive, we-will-win attitude. They see the recession as something that is temporary. They believe that economies will go into recession, rebound, go into recession, rebound. They don't lose sight of the goals and the targets of the company. Are you such a CEO? Do you work for a company with such a CEO? 2012 will be an exciting time. Sure, there will be bloodshed and casualties in the corporate world but you will also see some visionary Singapore companies invest in rebuilding their brand through various means and they will emerge stronger, faster and deadlier when the economy picks up again. I can't wait and I hope that I will get a few more front row seats. 

The desire for owning private residential properties have been so overwhelming in recent years especially in 2011 where the set of government property cooling measures implemented in January 2011 did not completely rein homebuyers’ optimism. This partly prompted the Singapore government to introduce the Additional Buyers’ Stamp Duty (ABSD) on 7 December 2011, the second set of cooling measures in 2011. Although homebuying interest was overall positive in 2011, there were also concerns whether that desire and homebuyers who committed were being rational, including some who may have stretched affordability thresholds and committed to a purchase for fears of possible further price increase. There may be even some who ‘regretted’ the decision, in the aftermath of the purchase. This could be particularly so as 2012 may be a challenging year and together with the latest cooling measures implemented, private property prices can potentially correct downwards. Split Second Decision Leads to Buyers’ Remorse Even if buyers’ today are generally more educated and savvy, there were indeed buyers who could not escape the fate of ‘impulse buying’. Some of the buyers may have made the decision due to concerted efforts by sellers to enchant the buyer, such as exquisite show flats and chancing upon beautifully designed properties when viewing, further encouraging ‘split second buying decisions’. Some homebuyers may also have committed on impulse, partly as ironically, the long search and information built on to the thirst of property ownership. As one continues the house hunt, the resistance level may also fall. This is also when one succumbs in order get the innate property purchase desire out of the system. How to minimize buyers’ remorse? For a buyer who committed to a private residential purchase on impulse, remorse can follow. The regret will be even significant if the purchase eats into his affordability level, or if he felt that he had paid a high price for a property which may not necessarily deliver the envisaged value. These include some who felt in the aftermath of buying that they might have paid too much for new designs and products. Alternatively, there are buyers who regretted if he purchased a property at a tradeoff from his original property requirements, in order to fit his budget. These include smaller or odd shaped properties, or older properties which have physically deteriorated. The reason he succumbed in short, is either due to allure or abruptness in his decision to simply end the home search.

The integration of mobile technology, internal mobility and the use of Recruitment Process Outsourcing for global expansion are amongst the top issues that will dominate Singapore’s recruitment market in 2012. High on the list is the importance of conducting a thorough background check rather than relying on content from social networking sites, which can be embellished. That’s because as employers incorporate social media checks into their recruitment process, some are neglecting to thoroughly background check the information they find, and some are even making hiring decisions based on this unauthenticated content. That’s why taking the time to get to know someone face-to-face, and confirming their background, is still crucial in identifying the right role for them. Also high on the list is the continued reduction in expatriate packages. In 2012, employees currently on expatriate packages will be converted to local packages and benefits such as housing and living allowance will be incorporated into the base salary. In other issues of note, we expect to see further integration of mobile technology into the recruitment process in 2012. Candidates have a growing appetite for information that merges easily with mobile technology, so organisations will look for ways that the recruitment process can make this simple. Meanwhile the reasons for using Recruitment Process Outsourcing (RPO) will change as organisations that are looking to expand globally seek a global approach to their workforce strategy. The need for global RPO will also be driven by both multinational employers looking to harmonise their practices and organisations expanding into emerging markets. Instability in the Eurozone is also a factor. Singapore - and Asia as a region - is well placed to ride out any impact on the global economy caused by European Sovereign debt issues, and in a global context our unemployment rate is low. As a result, in 2012 we expect to see increased interest from overseas candidates, particularly from those in the Eurozone, towards relocating to Singapore to take advantage of our jobs market, particularly since the Asian economies continue to outperform some of their western counterparts. Other talent issues to watch out for in 2012 are a culture of recognition as a result of employers rewarding proven performers, an increased use of internal mobility, and a focus on differentiation when recruiting. Across Asia we also expect to see an increase in the number of requests for candidates with strong bilingual skills, including fluency in Mandarin and English. Candidates who have worked overseas will be snapped up quickly.

Companies that will win in 2012 will be the ones that create an agile, lean working environment where employees are trained, equipped with the tools to succeed and fully engaged to seize growth opportunities. On the other hand, those hampered by productivity challenges will at best stagnate, and may find the year is one they would rather forget. So it is promising that our recent Randstad World of Work Report 2011/12 found that training and development, job re-alignment and succession planning are currently prominent in the minds of business leaders. Fifty-five percent of employees will up-skill current employees and almost half (46%) will realign job roles as a way to improve workplace productivity in the year ahead. The good news for business leaders is that employees show great readiness to help meet the productivity challenge, as their own top interests include leadership and career development (26%), and a strong understanding of how their role contributes to achieving organisational goals (21%). Nevertheless, anticipated increases in employee mobility will present a significant challenge. Three-quarters of employers surveyed say filling critical vacancies created by increased employee turnover or business expansion is the biggest productivity challenge for the next 12 months, followed by developing leadership skills for the next phase of growth (59%). Approximately a third of employers (30%) are also concerned about a lack of specialist skills to drive innovation, as well as downtime and knowledge loss created by employee turnover (32%). Business leaders know innovation will be the key to unlocking competitive advantage and it will take genuine product and service innovation to fuel demand and drive expansion again. Innovation lies at the heart of addressing barriers to productivity. What’s required goes beyond the technology, infrastructure and micro-economic reforms that created productivity highs in developed economies in the 20th century. A great deal has changed about the way we live and work since then. In a globally connected world, the next wave of productivity will be created by people and communities. Fifty-six percent of employers surveyed say they have ideas that could improve productivity, but more than half (53%) believe their organisation doesn’t have effective processes for capturing ideas for business improvement or innovation. This reinforces the importance of collaborating with functional leaders, human resources teams and frontline staff to design and implement successful productivity strategies. Communication is at the centre of this process. With ongoing adoption of external communication tools for internal purposes, leaders now have the opportunity to capture knowledge and ideas through the likes of internal social media, forums and blogs — however, the importance of face-to-face communication should never be overlooked, especially at the leadership level. Now more than ever, it’s important to walk alongside your teams and the key is to never stay too far away from the ‘front line’. With productivity challenges expected to affect all industries, it is clear business leaders will need to keep employees happy, skilled and focused to meet goals and reduce potential bottle-necks or distractions. Ensuring employees are ready to hit the ground running, with a full understanding of the market, their organisation and their stakeholders, will be critical. The winners in the year ahead will be those with the right people in the right jobs, motivated and ready to grow the business.

A day doesn’t go by in Singapore without reading about the doom and gloom, the economic uncertainty, the Eurozone crisis, china’s inflation and the US government empty coffers. Even our PM is prepping everyone to be ready for what is to come and expect only a 1% - 3% growth in 2012. This is a forecast before any actual bad news materialized. During the 2009 recession, forecast was adjusted to a 6% to 9% contraction. We were ultimately hit with a 2% contraction.

Singapore is one of the most technically advanced countries on earth. Singaporeans are some of the highest interactors with modern technology of all kinds in the world. They are also some of the fastest early adoptors of new technology and how to use to to benefit them in personal and business relationships. However I wonder whether Singaporeans actually spend too much time with technology and not enough interacting with real people. Consider some of these stats from various sources from The Straits Times to The Singapore Government to Global Research Companies :  

If there’s one person I wouldn’t want to be right now, it’s the CEO of SMRT.

Affecting more than 130,000 train passengers, last week’s 3 major MRT incidents over a period of 3 days has spurred public backlash. The recent wave of negative publicity that has surrounded SMRT is a lesson to larger organisations to ramp up their Crisis Management Strategies - if indeed they do have one.

Many companies in Singapore ask: “Is digital marketing really for us? Isn’t social media a marketing gimmick that targets youngsters?” However, the question to ask is no longer “Should we?” because it is rapidly becoming a ‘We must’.

I believe Singapore will eventually experience a severe earthquake. I’m not a pessimist; I’m a realist. You can't live 400 hundred kilometers from a major earthquake fault and say there is no risk of earthquake.

I was at a coffee shop in the Aljunied district of Singapore enjoying a nice plate of braised duck kway chap. The duck rice stall owner (let’s call him Ah San) came over with a frown and sat down with me and he lamented over the gloom future ahead in which the media was reporting.