Commentary

Today, many Singapore businesses are starting to acknowledge the growing impact Social Media has on its bottom line especially in a Crisis. Information has become as valuable as prime real estate where top search engine rankings and positive (or negative) reviews on influential blogs can have tremendous impact on a business' fortune. Unfortunately, many Singapore businesses today continue to use Social Media as an ancillary communication channel.

The global business climate has shifted markedly in recent years. Global financial crisis (GFC) aside, the rise of the Asia-Pacific region, new communications and media technologies, and an increasingly mobile workforce have forced companies worldwide to rethink how they conduct business.

In the highly competitive new world of work, employers must bridge the leadership gap to retain the volume and quality of talent required to be competitive.

What do you do when you are driving down a street and suddenly a brick wall looms in front of you? You try to go around it if you can, right? No point driving straight into the brick wall unless you happen to be in a 70-tonne Sherman tank.

Our latest Hays Quarterly Report, for the July – September quarter, shows that hiring activity is strong again in Singapore, with employers acutely aware of the deep shortage of skilled candidates in the market.

In recent months there has been much speculation about the long term viability of daily deal sites (also called group buying sites) like Groupon. Group buying has long been a popular means for consumers to pool cash together and create greater bargaining power. According to Needham & Company LLC, by 2015, the daily deals market will generate US$10.3bn revenue per year globally.

There are some times when being big, or at least looking big, can be an advantage when you’re in business. Some of your customers and suppliers may think that big means more reliability, a better price and higher quality. While that may not be necessarily true, however if making your company look bigger brings in more profits, you may want to consider doing the things that will provide that image.

Last week, I got a cost request from an agency to quote for conducting fieldwork on affluent people. I found the main specs rather odd; people who earn $20,000 a month and spend $1000 over three years on jewelry. (Well, it wasn’t jewelry, actually but I can’t say what it is so for the sake of illustration, jewelry it is)

In today’s volatile economic climate, smaller PR agencies could be an option to take your business to the next level at a fraction of the cost. Never mind the size; it’s the quality of work that counts.

When social media and digital giants set up regional offices in Asia, Singapore is often their first port of call. Most prefer to first set up sales and administration operations over engineering or technical support, although that is slowly changing. Indeed, Singapore is a popular regional business development base for global social networking businesses. Not only is the island state technologically advanced and its consumers tech savvy, but there is also a deep pool of multicultural talent. Plus, we have top-notch advertising agency talent based in Singapore; creative and experienced executives who are familiar with tailoring online solutions for different market segments across Asia Pacific. Singaporeans seem to have social networking under their skin, not just in a social, but also business context. A 2011 global survey from Regus found that the majority of small to medium sized businesses in Singapore (74%) say that social networking has evolved from a nice-to-have to a necessity. Over half (59%) of firms encourage their employees to join social networks such as LinkedIn, Xing and Video. Nearly half in Singapore (44%) devote up to 20% of their marketing budget to business social networking activity. As such, Singapore is well positioned to develop as an online talent ecosystem for the region. In just the last few years, companies such as Google (2007), Tripadvisor (2010) and LinkedIn (2011) have all set up regional Asian headquarters in Singapore. The executives that are most in demand are business development and sales professionals, with candidates coming from the advertising, media, broadcast and telecommunications sectors - though Google also recruits a lot of former management consultants for the sheer intellectual horsepower. There is more good news for Singapore, as the establishment of these global digital and social media giants helps lead to the development of local talent and opportunities. Managing online and social media businesses calls for a very new set of capabilities that is centered on consumers, content and advertising. I’ve observed more entrepreneurial and independent-minded professionals under one roof in these social media companies, than I've ever seen assembled in other businesses. This may seed future local start-ups or allow local social networks to expand their reach by partnering with their global counterparts in interesting ways, like how hungrygowhere is now providing content for the likes of Bing or Google.

There is intense competition for talented employees, as strong economic growth across Asia builds demand among businesses of all shapes and sizes. According to Randstad’s World of Work 2011 survey, 84 percent of employers believe the global talent war is set to worsen as these markets continue their rapid growth. With such intense competition for securing talent, it can be easy to cut corners in the recruitment process. While skipping critical reference checks may not seem important for your potential star candidate, it could place your organisation in a vulnerable position. Research carried out by Randstad in Asia Pacific found that 26% of businesses in Singapore have suffered an incident with an employee because they had not checked their references properly. Finding the ‘right now fit’ is a tempting option when you are facing the strain of a growing business. But beware – it can cause far more strain and potential damage in the long term. Focus on the ‘true fit’ rather than the ‘right now’ and never let the day-to-day strains of your organisation affect your decision. Here are the essential steps you can take to ensure you are hiring for ‘true fit’: Understand a candidate’s background People providing incorrect or false information in their CVs and in interviews is more common than you think. While some are innocent mistakes that do not detract from the candidate’s ability to do the job, other ‘mistakes’ included incorrect employment and academic dates or fictitious professional qualifications. Despite many organisations in the Asia Pacific region failing to take adequate steps to check the backgrounds of potential candidates, employers seem to be clear on what would have helped them avoid this incident.

In the last 12 months we have seen a rise in the number of creative entrepreneurs starting up businesses in Singapore. Fezzi, Smaato, ThoughtBuzz, SMS Dome, Chalkboard and Yoose, to name just a few. This week I learned of two others. Little Voice Game which is launching a Facebook game and MyCube, which ambitiously plan to compete with Facebook.

Believe it or not, the number of employees who hear this from their boss before getting the axe is likely to increase. Just a few years ago, Facebook was considered a taboo by the corporate world. Employers would not be allowed to access Facebook while in the office, which was bad news for the millions of Facebook users worldwide. Today, a lot of companies have laid down their guard and allowed their employees to access the popular social networking website. This freedom, however, has come at a price. Small and large companies have begun to understand the importance of Facebook in determining the integrity and character of an employee and are looking to the social networking website to decide who deserves to be in their company. RECRUITMENT · The use of Facebook is not only limited to employee monitoring. Companies are also recognizing the role of Facebook in their recruitment process. A lot of companies take a look at the Facebook profile of their candidates to find out what they have really been up to. CROSSING PRIVACY BORDERS · So, why have companies signed up for a Facebook account? The social media website lets users create online profiles and share their deepest and darkest secrets with their friends. Unfortunately, these secrets don’t stop at just the friends. Almost anyone with an account on Facebook can view what a person has said, allowing employers with access to Facebook to view their employee’s profiles at their own will. WHAT YOU TWEET MAY HURT YOU · Today, recruiters have realized that information related to applicants is not limited to their resumes, experience letters, or recommendations. They have begun to understand the importance of social media websites such as Twitter and Facebook in finding out the truth about job applicants. While some companies have officially begun gathering information through social media tools, others are doing so unofficially. Either way, it is bad news for employees and job seekers. SOCIAL MEDIA AS GOSSIP CENTRAL · The use of Facebook as a recruitment and employee monitoring tool has now meant that employees and job applicants need to clean up their profiles immediately. They need to stop writing about things that may put an end to their career and cut off ties with others who may be doing such things. Employees need to stop gossiping about their company or their superiors through their website, as it may be considered to be a breach of privacy or security. KEEP YOUR THOUGHTS TO YOURSELF – OR AT LEAST YOUR FRIENDS · Job seekers also need to understand that their Facebook profile would come under scrutiny at any time. They need to keep their profile as clean as possible whenever they are applying for a job. Job seekers and employees need to refrain from racist groups or from making racist comments. The open nature of Facebook was once considered to be a boon by many; a place where everyone could share everything with each other. However, the same features that made Facebook a popular online social hub have made it a danger zone for employees and job seekers. In fact, there have been instances of employees at high positions in a company being fired without second thought, just because he or she wrote some inappropriate comments on the website.

Family business Family businesses are the ones that are owned and managed by one or more of the family members. These members have a significant ownership and majority of the control lies with them. Family businesses exist all over the world and some of them have been around for decades still maintaining the initial vigour and dedication.

Last month, accountants and finance professionals from all over Singapore gathered at the ACRA Public Accountants’ Conference “Transitioning from Value Protection to Value Creation” to discuss the latest issues facing the profession. One of the big themes examined, and the main topic at an ICAEW-led discussion, was how finance professionals can develop as business leaders. At first glance, leadership may be associated more with management bodies, but this is not always the case. Firstly, as one of the oldest accountancy bodies, ICAEW has been training future business leaders for generations. Secondly, and more importantly, leadership roles and the need for leadership skills within organisations are evolving rapidly. Few economies are as well-placed to experience this as 21st-century Singapore. In the World Bank ‘Doing Business’ Survey 2011, Singapore retained top spot as the most advantageous place in the world to operate, but developed economies cannot afford complacency. Emerging nations are fast developing and, as they industrialise, providing increasing competition. This is why the emphasis is shifting towards developing knowledge- and skills-based economies. Singapore is already one of the leading financial services hubs in the world, and the influx of Chinese, Indian and Middle Eastern companies listing their companies on the Singapore stock exchange (SGX) suggests this trend will continue. But in order to take advantage of the changing economic climate, Singapore will need ever greater numbers of business leaders with financial expertise. The modern CFO As markets have globalised and as the pace of commerce has increased, the nature of leadership has changed for successful companies. This is particularly evident in the role of the Chief Financial Officer (CFO). CFOs used to be primarily technical financial experts. In the 21st century, technical expertise is still a vital skill, but the job demands wider abilities. Firstly, a good CFO must be a good supporting business partner for the Chief Executive. The best CFOs are highly trusted advisors, and this relationship lies at the core of successful organisations. For it to work takes not only excellent people skills, but also the ability to empathise and influence, which depends on having a good grasp of the CEO’s priorities and needs. Strategic thinking This means CFOs also need a firm understanding of strategy, enabling them to identify strategic problems and challenge where necessary. This is not just important for the CEO relationship but also when dealing with the Board. CFOs have sometimes attracted unfair reputations as ‘no men’ because they have the power to block projects. However, the ability to see where a proposal could offer revenue opportunities is part of a good CFO’s portfolio. The key is combining the financial acumen with cool strategic planning to identify which opportunities are in tune with the organisation’s direction and which should be avoided. Effective communication creates credibility In order to influence the CEO, Board and colleagues, as well as setting out good strategic decisions, it is critical a CFO can communicate effectively. This is also important for external relations. CFOs need to be able to build strong relationships with stakeholders like investors, analysts, bankers and regulators and effective communication is a large part of this. Building these relationships helps create and demonstrate credibility inside and outside of the organisation and is part of building up a strong leadership profile. Leading from the front Whilst relationship building, communications and strategy are critical assets for good leaders, the best leaders are more than this. Great leaders are able to inspire employees and colleagues and are not afraid to get stuck in when necessary. This means being able to take responsibility, make strong decisions and being prepared to embrace innovation and lead change. But at the same time, it is important to remain objective and independent and to carefully manage risk. This might sound like an impossible, and maybe even contradictory, task. In practice, it takes experience and hard work, which is why the path to business leadership needs to begin early. Preparing to lead Professional development is always a continuous process, but not all skills can be accrued simply through experience. When the skills needed to enhance career progression (such as communication, external relationship-building or strategy) are not tested in the course of a professional’s current role, extra opportunities to engage and stretch these skills are essential. This is one reason bodies like ICAEW offer leadership programmes to members at any stage of their career. Many finance professionals have the abilities necessary to become great business leaders, but these need to be developed through mentoring, peer-to-peer and cross-industry learning, which can place their skills in context and allow them to grow. Early engagement is a great way to lay the foundations for a fast-tracked career path to management. Leading the way As China and India show evidence of ever-increasing economic growth, the ASEAN nations are presented with both a challenge and an opportunity. On the one hand it could be easy to see the strong emergent economies as a threat, but for skills-based business-friendly economies, the growing need for financial and professional services could present a number of opportunities. In order to achieve this, business leadership skills are essential.

Companies are constantly giving themselves makeovers, reinventing themselves in some way. It may be changing a logo, re-branding a website, hiring a new spokesperson, or a new design for a catalogue and billing statement. Trends and consumers are constantly evolving and companies must keep up to evolve with their customers. Some elements of each brand may be timeless, but there are always variable factors which must transform and adapt to the consumer. Is this a sign of weakness within the company? Certainly not, even the most successful companies have done so. Take for example one of the most successful fast-food restaurants, McDonald’s, which spent more than one billion dollars to revamp themselves to a more upscale image. The company is investing in a shift from a stop-and-go-eating establishment to a more comfortable atmosphere where customers may want to stay longer to use Wi-Fi or socialize with friends. The strategy is to create a different and more memorable experience than McDonald’s competitors, like Burger King and Wendy’s. What these adjustments indicate is that McDonald’s is committed to changing customer perception. Another way companies can transform their brand recognition is by changing the way they communicate with customers. Using Precision Marketing tactics to improve communications isn’t a new technique – as customer specific messaging has been proven to work albeit infrequently executed. Find companies that will work with its utility customers to revamp their monthly customer statements to better meet customer needs. They will refresh the look and the feel by adding colour, graphs and visual elements to show customer usage patterns, and icons for each service (water, electric, gas) – making the bill easy to follow and understand. The main objectives are: to improve clarity of the information; in turn reducing call inquiries by 20 percent; influence customer behaviour to reduce energy consumption and emissions; and lower the cost of statement operations through process automation. The overall goal was to influence customer behaviour to keep costs low, while better serving the customer’s communication needs. Although it may not be as global an exterior makeover as McDonald’s, a bill redesign can be just as successful in term of return on investment. The way organizations communicate to customers is a key factor in how they are being perceived and may be the most personal experience some customers have with the company. Bottom line is, companies do not need to splurge on the way they look if they can’t even get the basics right! Just communicate with them effectively.