Commentary

Recession: The best time to rebuild your company

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.

Commentary

Recession: The best time to rebuild your company

Commentary

Ways to avoid buyers’ remorse

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.

Commentary

Singapore’s top talent issues for 2012

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.

Commentary

Get ready for the productivity challenge in 2012

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.

Commentary

5 things you need to know to be recession-proof

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.

Commentary

Do Singaporeans prefer machines over people?

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 :

Commentary

Why I don't want to be SMRT's CEO right now

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

Commentary

5 critical things SMRT failed to do for crisis management

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.

Commentary

How digital increases your business

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’.

Commentary

What will happen when an earthquake hits Singapore?

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.

Commentary

Start creative, stay creative

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.

Commentary

What's a better communication tool than email?

Imagine if you could communicate to all your staff with a tool more productive than email? Where your staff in Singapore could watch, learn and communicate with colleagues in the next office, next building or your regional HQ half way across the globe.

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Untapping the social media potential

Born in Singapore and raised in the San Francisco Bay Area (don’t worry, I came back to complete my National Service), I guess you can say that I’m pretty familiar with the two places. Although there are obvious and discernible differences between Singapore and the Bay Area, they’re quite similar for the most part.

Commentary

Public Relations or Advertising?

So, you’ve got this fantastic product or service – and you want everybody to know about it. But you are not sure how to get your message across to the general public or specific audiences. You’ve asked yourself the question Public Relations or Advertising? The relative impact and objective of each are very different. Public relations can benefit over time from—and is designed to work in conjunction with—advertising and specific marketing initiatives. One major and obvious factor that differentiates advertising from public relations is that advertising is paid placement. Public relations, on the other hand, is free editorial placement. Public relations campaigns leverage the power of the media to promote your business and products to the general public. The difference between the two rests in your ability to weigh the benefits of a PR campaign against the benefits of traditional advertising. If a newspaper or magazine decides that your product is article worthy, you will enjoy publicity with no out of pocket costs to the media. The media outlets themselves bear the expense of air time or print space because in their eyes, they are reporting a newsworthy item to their viewers or readers. There is a myth which says the media will most likely only run your story once. Not true. An expert PR consultant can ensure that the story can be spun into new angles. A great story can snowball. Imagine getting nationwide or international exposure, absolutely free. This can be done by issuing a well written press release, writing a feature placement or pitching a story that appeals to the editor. Writing a press release is usually accompanied by the essential key messages, FAQs, a company profile, a fact sheet with succinct information, your Biodata etc – all packed together in a Media Kit (file folder) which is then presented to the journalist. Sending off a well-written press release with the right information has a lot of advantages. It can dramatically increase your sales, expose your company to the masses, and greatly enhance the image of your business or products. You also have content control over what is published contrary to the myth. The journalist that takes on the assignment or decides to interview you may have all the say in the length, word choice, and format of what is being reported about your product or service. But an expert PR consultant can help you spin the story so that the information is presented in a fair and accurate manner. The expert PR consultant is also able to prepare the client for an interview by pre-empting many of the questions to be expected from the journalist. In some cases, the PR Consultant can even ask the journalist the questions in advance. At times the journalist may not provide specific questions but the PR consultant will be told that the interview will hover around a certain topic, making it easy for the PR Consultant to pre-empt the questions. Be honest with yourself: How many times have you seen an advertisement in a magazine or a newspaper and you show skepticism about the product's reliability? Advertising is all about the hype but is there any truth in it? Even if it’s all true, how would anyone know if there’s no third-party endorsement? When you read an article about a product – say for example, a new luxury car or a computer - in a printed media source, you are usually more inclined to think that the product is trustworthy especially if it has been reviewed by a journalist. So are you going to belief the advertiser word by word or would you prefer a third-party endorsement from a journalist? Readers trust independent authority figures including reviewers, columnists, journalists and broadcasters. An article about your business has far more credibility than an advertisement ever could have. The article carries more information and depth, and everything you wanted to know has already been answered in that article. This is public relations. It takes the value of advertising and builds upon it based on enhanced impact. Editorial is third-party opinion, so the impact is considered three times that of a paid advertisement.

Commentary

Another way to take care of your employees

Take care of your employees’ safety and health and they’ll take care of your business.

Commentary

Become the consumer

Just for a moment, I'd like everyone to take off their advertising hat and become a consumer, with passions, needs and preferences. Think about a brand which you feel a particular connection with, one that helps you fill a need in your life. Not only that, it has to be one that has stood out from the competition because of the creative messaging used to promote it so that it connected with you emotionally. In fact, you feel so strongly about this brand that you rave about it to your friends and family, because you want to share that feeling with them.

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What makes a business ‘un-sustainable’

I’ve spent a lot of time in Singapore over the last few months, presenting at sustainability and energy conferences. From SMU and SIEW, to EnviroAsia and the ‘Eco Ideas’ forum, I’m greeted with the same query, “what is a sustainable business?” Good question!

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