Is the Islamic Economy for People?

Image Courtesy: www.shutterstock.com
Image Courtesy: http://www.shutterstock.com

It’s amazing how little we actually focus on ‘people’ in business in spite of the fact that it is people who make everything happen. An organisation exists because of its staff, partners, customers and other stakeholders, i.e. people. The value proposition of any organisation and any industry, for that matter, is totally dependent on the people involved.

Globally behaviour of people, across countries and across socio-economic strata has changed vastly. Impacted by financial crises and the rapid proliferation and use of social media, people are now interacting more and more as interest-based communities.

Where does the ‘Islamic economy’ fit in among all this?

Given the high growth in the Halal & Islamic finance industries the Islamic economy has come into the spotlight with Dubai’s announcement of re-inventing itself as an ‘Islamic economic center’.

This is great news for a variety of reasons:

  1. Business growth opportunities for corporates and entrepreneurs.
  2. The seven pillar strategy of UAE provides strong growth impetus to additional industries in the Halal sector.
  3. Increasing job opportunities which will then impact on increasing consumption.
  4. Increased requirements of up-skilling of industry professionals.

For organizations to capitalise on the opportunity a very tightly focused strategic approach needs to be there.

The driving force for the Islamic economy is the Islamic financial services & Halal. These would be in pole position whilst the powerhouse that would provide the fuel to these two sectors would have to be the education sector.

As one takes an overview across these two industries one notes that the approach to strategic development still appears to be using the classical method of having a ‘USP’ – unique selling proposition – i.e. developing strategy from a product perspective.

Not that this is wrong.

But given the massive behavioural changes that occurred in the last decade, not acknowledging the impact of those changes in business strategy is akin to ignoring reality.

For organisations, to be successful in establishing a robust Islamic economy, a very clear focus and emphasis on developing business strategies based on understanding their people who are involved in the business eco-system, has to come about.

There are two key points here:

  1. Robust economy: This means ensuring sustainability of each organisation’ earnings so that the organisation stays in existence and industry growth is maintained.
  2. Understanding People: Business is run by people – the organisations’ staff – for people – customers, vendors, partners. Without acknowledging and understanding what motivates people, business strategies would be way off mark.

Why is there a need to focus on people?

A focus on people has to be taken on board as the behaviour of the people impacts very heavily on an organisations’ ability to perform well.

Here’s how:

  1. Culture:
    With business growth opportunities shifting towards Asia and Africa, organisations are now faced with understanding what the new consumer behaviours is like in these new markets. Within such vast markets the end consumers’ behavioral patterns differ across and within countries. Simultaneously, organisations have had to look at on-boarding knowledge workers and millenials in their work-force in order to manage this growth. Knowledge workers and millenials have different behaviours based on age, experience and environmental background.
    So today the need of the hour for organisations is to take on board how these diverse behaviours from people connected to their business are affecting their performance and acceptance of their brands. Internally, these behaviours impact the work culture within an organisation. This culture, in turn, manifests externally, and focuses on the way relationships are built with the external stakeholders.
  2. Leadership & Engagement
    The people or staff of an organisation are the physical manifestation of that organisation. The behaviours the staff display are, in essence, a representation of the organisation’s culture and values. This brings to fore an emphasis, for the organisation, on its leadership and employee engagement.

    Increasingly, the demand on leadership is becoming one of creating influence and social buy-in or, in other words, developing engagement based on aligning personal values and mission (of an employee) with that of the organisation.
    Leading to having, as far as possible, engaged and happy employees in order to ensure the organisational brand is delivering authentic value.
  3. Involvement
    Engagement leads to having the employees at the center of the overall brand experience. This focus involves understanding the organisational culture prevailing, discussing change areas if needed, fine-tuning desired behaviour and communicating it to the employees in a manner that brings about acceptance. Active involvement of employees becomes critical as without this the brand vision and brand delivery cannot be achieved.

Going forward what can the organizations involved in the Islamic economy do?

Focusing on people means re-calibrating how business strategy is approached. Instead of a product-centric approach, one has to move into a people-centric or behaviour oriented approach that fits the environment.

Here’s how:

  1. Develop business strategy from a perspective of the purpose you are in business for and how that purpose fits the environment. This process will entail understanding the people, impacted upon by the business, and their needs. This entails understanding cultural behaviour of all the stakeholders and developing the strategy based on that understanding.
  2. Develop the organisations’ leadership & management strategies to fit the business strategy. This means have the right people in the right functions.
  3. Lastly undertake activities, as initiatives, which clearly show the organisations’ understanding of the cultural behavioural nuances of its stakeholder.

Organizations that do focus on such an approach will be the ones sustainable in the long run and with strong brand loyalty.

 

(This post was first published in Investvine in Apr 2014)

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