Reading the article Why are we seeing so many corporate scandals? By Prof. Dr. Amit S. Mukherjee I liked the questions that Prof. Amit raises. The queries resonated with the planner in me and I found them to be interesting. I say interesting because, whilst the erosion of trust has impacted quite heavily on the financial sector and probably enabled the growth of technology based financial solutions or FinTech, these questions are very valid across all industries including the Islamic finance industry.
Here are the questions Prof. Dr. Amit raises:
Have we rethought how we work in a digital age when work increasingly requires large doses of unseen discretionary effort?
Have we redesigned processes and structures to surface problems before these become crises?
Have we allowed the free flow of key information to distributed decision makers?
Have we created collaborative, learning-focused cultures?
Looking at the environment, in which the Islamic finance industry is operating, currently makes these questions quite critical, from an organizational perspective, with regards to sustainability of the various business models in operation.
There are three key issues that get highlighted when one runs the above mentioned questions through business continuity thinking.
Starting with talent management & development and its allied areas of learning & development, given the necessity of managing increasing numbers of Millennials, entering the workforce, along with providing gender diversity and equality coupled with ensuring professional development of the existing employees, the need to develop and incorporate digital and its various usages in work and its processes assume significant importance.
This leads into the second key issue of leadership competency.
On one hand erosion of trust, in financial institutions is at an all-time high, on the other technology in the form of social media has made the world a very small place where real-time personal engagement and word-of-mouth recommendation is given preference over any corporate statement or communication. This has created a need for a different type of leadership competency requirement. The control & command leadership style of yesteryear simply does not work in a world where knowledge and technology are driving the comparative advantage for an organization. There is a serious need for industry leadership to be empathetic and transparent in order to create engagement with society and employees simultaneously in order to develop social capital for the organization, from a business continuity perspective.
Thirdly is the issue of technology and its impact.
FinTech, in its various forms, has already impacted the conventional financial sector greatly by disrupting the historical business models. The driving force behind this technology usage and acceptance is the development of the smart phone technology and the need for the layman to have direct and quick access to finances. Add to this the developments taking place in the Islamic economy industry verticals, such as the increasing demand for innovative financing by the start-ups and entrepreneurial ventures, and you have a potential scenario of the Islamic finance industry losing out on big-time growth opportunities as these opportunities will get fulfilled by new financial start-ups who are agile and able to collaborate faster, as maybe required, with the changes in the regulatory landscape.
Whilst asset growth, increase in Islamic social responsible investment and convergence of ESG and Islamic finance are occurring we, the individual organizations of the industry, need to create strong sustainability and continuity plans to protect ourselves from further economic upheavals which are still bound to happen.
This can only happen when we focus on people—employees, customers and partners—and look at the experience we deliver to them and the social issues we solve in order to create and retain engagement and build social capital in our mission for business sustainability.
Whilst most organizations have learning and development units the question I’m raising is: Are organizations really focused on learning and developing the talent pool that they have?
In today’s business environment the competitive edge, for an organization, comes from its culture and its talent. The latter is at the core of success
an organization can achieve.
In the usual commercial organizations, where profitability is the end objective of all activities, learning is often lost in the daily rush of what needs to get done. Resulting in the organization losing sight of developing its critical asset—people.
Without planned development of its people an organization cannot expect to be successful and sustainable in the long run.
It has four simple ideas which I find simple yet oft forgotten in the hustle and bustle of daily work.
Being stimulated from this article, in this post, I’m taking a look at how the education and professional development sector approaches learning and development in their business strategy.
Is there a lack of focus on learning and development of talent in the higher education and professional development sector?
After all academic institutions, by their very nature, are meant to have an environment focused on learning and development. If this is true it would mean that such institutions would put talent and their own knowledge thought leadership front and center of their business strategy.
Or is it that the environment is only created for the students the institutions cater for?
Looking around one sees the necessity of the academic institutions to operate more and more as commercial entities in order to ensure financial sustainability. That, however, does not absolve the institution from losing focus on its talent and in turn on learning and development. Such a loss of focus would be disastrous as its impacts on the reputation of the institution.
Reputation is a key driver of business continuity for any academic institution.
Such reputation is built through strategically identified initiatives all of which should tie back to a central learning and development focused strategy impacting on the people of the institution and their output. By having clearly identified quality benchmarks of the initiatives the institution can ensure business continuity and commercial sustainability.
A clear focus such as this will lead to the institution developing a competitive edge and become an institution of choice by potential students, the industry it serves as well as the academia.
By investing in its people and its knowledge base strategically, organizations involved in the education and professional development sectors, can see the positive impact of specific activities in terms of reputation and bottom-line.
Culture– that all elusive and hard to describe organizational element that fuels how an organization performs– has had a lot written about itself. Yet there is no one-size-fits-all formula that can be applied, across board, for leaders to have the right cultural climate that results in increasing profitability for the organization.
Change in work culture has become a buzz word for many organizations in the Middle East today. However the organizations are still challenged to effect change failing to appreciate that a written statement with a handful of glamorous values plastered on walls will not do the trick.
The major shortcoming is that change is greatly undermined in terms of the effort, time and investment required. Change is an organizational wide transformation and we have seen it fail because it is not mandated by leadership nor is it communicated through practice in a consistent manner. Diffusing change requires partnership with the workforce and the organizational values must be closely aligned with the strategy and growth plans. If leadership does not lead cultural change, then the mass would; and in most occasions, they would disintegrate it into a collection of varied sub-cultures that are misaligned. This results in a culture of crumbs.
The reasons why change initiatives, in the Middle East, have often failed is because middle management impede it, and fail to see why they must invest a significant amount of their time as change champions. They fail to see the necessity of leveraging their interpersonal skills and eloquently communicate what is in it for the employees in order to create a inspiring engine to make the employees the agents of change; as no real change can be realized without involving all stakeholders.
For industries and their organizations across Middle-East and ASEAN region, business is a colonial legacy brought about through the presence of the multi-national organizations. Independent businesses spawned by employees of these corporates operate with similar cultures as the owners were used to during their employment days. The result of which is having businesses operating with yesterday’s tools and expecting a different result.
Aren’t we expecting a bit too much?
The colonial legacy, of Middle-East and the ASEAN regions, passed on what is primarily a very individualistic cultural business style.
Whereas the social culture, of both regions, are more community oriented with rigid hierarchy based on age. In the Middle East, it is also based on a diverse spectrum of factors because of imported talent of various nationalities from various fields and cultures.
Into this enters behavioural changes which people have had due to the global financial crisis of 2008 and rising adoption of technology. Social media, for one, has made the world a much smaller place and has led to the rise of self-interest based communities. Word-of-mouth referral has become a norm for success and failure of a business. Yet across businesses in these two regions we are yet to see a concerted focus on culture and its resultant impact on business strategy.
Asia today is the economic growth center for the world. Along with the twin economic tigers—China & India— the Islamic economy, centered out of Middle-East with its hub in Dubai, is adding to the economic growth and impacting across industries.
The Middle East economies have also put a concerted effort in attempting to diversify away from petro dollars. This is a major challenge that cannot be overcome unless there is emphasis and focus on a new type work culture.
A culture that is highly transformational in nature with a set of values that engages and builds bridges for and with the employees in order to mould a
mind-set that is agile enough to serve the current challenges of the new economy with a special focus on productivity and innovation.
This impact is felt by thousands of businesses, corporate and SMEs involved in generating this economic growth and, in turn, by the consumers in these regions. All of this has a direct impact on the culture that employee, entrepreneurs, leaders and their businesses display today.
Globally we are seeing how established industries are being disrupted by new businesses based on the culture they identify and put in place. The one common denominator for success across these organizations is the culture that they create to drive sustainability of their operations.
Can we achieve new results with old methods?
With 4 generations—Baby Boomers, Gen X & Y and Millennials all in the workforce now– and each generation having very distinct behaviours, developed through socio-cultural and educational conditioning, can we expect an organization to have engaged employees who are all on the same page with regards to organizational goals and its linkage to them individually?
There are several cultural gaps in Middle East and ASEAN organizations; hierarchy still exists, lack of flat communication, leadership always runs short of time or spend too much time fire-fighting, and there is a general theme where lack of trust and confidence in each other has become the norm until proven otherwise.
Although diversity is part of what compliments a cultural change, it has been a challenge at several organizations where diverse interpretations of events affect everyone very differently.
We need to look at new scenarios, perhaps disruptive ones, and benefits of the same to each generation, to create a culture that allows for a common purpose to be shared across these generations of people in the workplace. It all boils down to giving the people the value they deserve in developing the business.
How can we create new scenarios that actually work in creating an impactful culture?
Respect: Senior leadership behaviour, in organizations, should communicate equal respect for male and female colleagues.
Voice: Move away from the ‘master & slave’ attitude towards a more open ‘partnering’ attitude which provides an environment for employees to voice thoughts and ideas.
Conversations: Create more opportunities for face-to-face in person, or through technology, interactions or conversations where issues successes and failures are openly discussed for its learnings and not to point blame. The more an organization talks, informally on work, the more engaged the employees get. This creates accountability as people want to do their work so that it helps their colleague.
Trust: Create trust through the conversations, by bringing diverse people and skill-sets together on key business projects, and taking their point of view and making them accountable in delivering the agreed goals for the business.
Passion: Recognise the ones with passion for the business and praise them for their initiatives and drive.
Creating Culture: Culture is created either consciously or unconsciously. It exists. We know of it and actually do something to make that culture behave in a manner that is beneficial to the business or not is what defines success today. One may question and ask—how do I create culture as I am not in a position of authority to do so — the answer is that you can create culture in your unit, department, and work section if you consciously decide to do so.
The collective experience and behaviors of the employee is what sums up the organizational culture.
Culture is just like personality and leadership must create the goals, strategies, experiences, interactions, and rewards from the values it preaches in a consistent manner as every experience is a piece of the bigger puzzle. History forms pieces of the puzzle just like language, events, stories and work practices also shape the desired culture. Impactful change is about giving and taking and it can be achieved through formal strategy, systems, and measures with ownership.
Culture change requires changing behaviors and breaking old habits and this is realized through collaboration, training and coaching. In order to continuously reinforce a strong and successful culture change it has to be modeled, taught, repeated, recognized, and rewarded. The end result should be shared values and productive behaviors to create a healthy and harmonious environment.
About the co-author: Shatha Al Maskiry is a country managing director of Protiviti in Oman. She has 18 years of experience spanning across various consulting roles from process re-engineering, talent risk management, and digital transformation. She is also a certified coach and active in social services especially in coaching youth and students.
Last week I was catching up with my eldest son and a couple of his friends all of whom are millennials. One of them asked me – how can we contribute, to the organization, as employees outside our functional roles. This post is a result of that chat.
For an organization success is measured by differing metrics depending on the nature of business and industry. One common thread is the fact that employees make all the difference between success and failure due to the extent of their engagement and involvement with the organizational goals.
Whilst employee engagement is the responsibility of organizational leaders, employees, too, have an individual responsibility in developing healthy relationships with their co-workers.
Whilst an organization may have product or service advantages, innovative patents and technology in use, at the end of the day the strength of any organization is in the relationship its employees have within themselves.
Developing strong and rewarding inter-personal relationships come about from the way we are socially conditioned to make friends, network and influence, communicate and give value to each other. This is where communities and groups emerge from.
So as an employee how do you go about creating beneficial relationships?
Interact:Use the official events, such as team building sessions, training, sports, employee parties and community services, to reach out and connect with employees from other divisions. In large organisations one of the key issues is that people don’t know who does what in which divisions. So provide your fellow colleagues a-face- to- a- function so that they know they can reach you when they have the need.
Volunteer: Step up and volunteer for projects that are not in your functional area. These project teams, usually, are set up to deliver key goals for the organization and is a great way to: — Get yourself to interact with the organizational leaders and show additional initiative that goes into your annual performance. — Helps you identify possible mentors and work functions that you may want tomove into in order to grow within the organization.
Talk:In any group meetings there are always issues being discussed. Put aside your fears of looking stupid, in front of your bosses and peers, and speak up. Make sure you understand the context, of the issue at hand, and then put forth your suggestion. On a personal level, when you see a fellow colleague from a different unit at any time of the work day, stop for moment and ask how he or she is and how their families are. Share a minute or two connecting on common personal areas. Be careful when you do this. Do it meaningfully and not in passing.
Help:If another colleague, either from your own unit or otherwise requests for information or assistance, help them. Not only would you be earning respect and gratitude of your colleague but you’ll be communicating to the leaders that the interest of the organization is what matters to you.
I’d be happy to know if this post is useful to you. Do share your views on ways in which you have nurtured internal relationships for the benefit of the readers.
DC Comics has just rolled out the Justice League Part One trailer at the Comic Con and you can view the trailer below and get the details of key characters here:
To me this superhero team movie has some very interesting leadership cues that’s quite relevant to the business environment today. Here are my top 4 cues:
Leadership Vision: One man–Bruce Wayne– recognizes the threat and identifies the resources (meta-humans) that would be required. Is it his 20 years + crime fighting experience or sheer intuition? Either way this is vision or the foresight to see what’s coming in the future. In the business world the CEOs are meant to show this skill.
Communication: Note how Bruce W goes about searching and communicating the purpose (of negating the potential threat) in recruiting the team he feels can do the job. In the business world having such clarity of thought aids leadership in touching the hearts (along with the mind) of their potential and existing employees.
The Team— Batman, Wonder Woman, Superman, Cyborg, Aquaman, Flash (as starters)– each with a unique superhuman skill come together for a common cause. Sound familiar? In the business world every organizations has a purpose. No it’s not making-profit! It’s a bit more than that. It’s got several terms–Social Responsibility; Community Outreach; Engagement etc. Whatever be the term, the purpose of any organization (should be) is to provide value in its offering to people in order to make their lives better.
Often such purpose and the dollar value target gets interchanged!
Thus the goal becomes a numerical item devoid of any emotions attached to it. And this impacts how the organization engages with their team. Instead of creating teams based on whose skills are best suited to the purpose, we often end up selecting teams based on who is best suited to bring in the numbers.
4. Purpose— In the movie each of the superheroes have a key purpose with regards to using their superpowers to aid the team in saving the world. In the business world this is often where the gap occurs! Purpose and value is often not communicated with clarity.
We get so much entertainment from our superhero characters and whilst the kids look to emulate them, as matured and responsible adults, can we looks at taking the excellent leadership cues our heroes show to us into our daily lives?
We all know the three key ingredients that go into making a healthy organization:
Cash Flow—Liquidity is the life blood of any business. Having the necessary cash flow enables a business to invest and grow.
Employee Engagement—Motivation leads to productivity & efficiency. Employees represent the brand and their behaviour impacts on the output and on the business revenue and reputation. Employees are the heart of any business.
Leadership— Leadership provides purpose and strategic clarity of vision of the business.
Whilst cash flow is the blood and employees are the heart, leadership acts as the vitamin for any business to give it the much-needed energy, immunity and growth.
As a business owner or a corporate executive we give lot of attention to the first ingredient—Cash Flow. Yet we neglect the other two– employee engagement & leadership— and oft take these for granted.
Without giving these two important areas the due attention they deserve how do we expect our businesses to be healthy?
Make Leadership priority number 1. The core of a healthy business starts with leadership. Providing the right leadership aids in getting the employees engaged and involved with the purpose of the organization.
Employee engagement occurs when the employee sees a clearly defined benefit– Provide clarity of role and alignment of the functional role to the purpose of the organization. Thereby recognizing and appreciating the employee and aiding in developing effective engagement.
Engaged employees are more productive and deliver a far better customer-experience. This results in a high cash flow for the business through sales, repeat sales and higher customer satisfaction.
So looking to grow your business?
The starting point is to study is not the new market opportunity or the pricing or the cost-benefit analysis. The first place is to look at the leadership of the organisation and evaluate if the leadership is:
Having strategic clarity
These two factors are critical.
Leadership is the link to having engaged employees.
In any organisation you need to have engaged employees to generate growth and sustainability. Without the employees being engaged a business simply exists up until a point where the cash flow is severely affected resulting in the closure of the business.
The way to get employees engaged is to ensure that the leader is able to clearly articulate and align organisational goals with direct benefits that impact the employees. Answering the ‘what’s in it for me?’ question brings about an empathetic connect between the employee and the leader. That aids in motivating the employee to perform.
This is why leadership is vitamin for an organisation!
Leadership is the, all-pervasive and all-encompassing, element that provides a business with the required stamina and energy to be a sustainable brand.
The Islamic finance conference circuit has finally woken up to realise that organizational growth comes about through a focus on Human Capital and Talent Development. Better late than never. Yet one wonders if it is a bit too late in coming.
The Islamic finance education sector is highly fragmented. On one hand there is a plethora of established universities globally offering academic qualifications. On the other, there are a multitude of commercial education service providers delivering various professional qualifications. Global recognition of these qualifications is an output of how best an institution can show compliance of individual standards as required by countries. Increasing programme fees, cost of living, increasing preference of digital or e-learning and uncertain economic conditions are impacting quite heavily on the usual business model employed by the education service providers.
On the other side the industry has been acutely focused in the technical aspects of growing itself and trying to position itself as an alternative financial framework. Regulatory and product developments have primarily been the key areas of focus over the past decade. Other key areas of research, soft skills and talent development have not been on their radar.
The impact of this, on the education sector, is a massive one.
Industry prefers to bring on board talent that has work experience and globally recognized qualifications. This has resulted in academic programmes and its co-related research being classified as theoretical and not providing the necessary skill-sets that the industry requires.
Couple this with the behavioural changes that has occurred, due to technological adoption and usage and economic conditions, and one finds the overall Islamic finance industry a bit out of touch with reality. Costs have brought about a demand for shorter and shorter programmes. The tech world has seen a huge rise in this area. One example is the nanodegree. Support from the Islamic finance industry in recruiting required talent on campus, by virtue of having a clear talent need and development plan that’s based on business strategy, has been sporadic and is based on regional relationships between academic institutions and industry organizations. Development of academic programmes based on data and cases from the industry are far and few. These are available as short-courses or executive programmes few of which have clear CPD (Continuous Professional Development) points and benefits linked to it.
Simultaneously the education sector is seeing significant changes with regards to programme content, delivery and accessibility. Globally ranked academic institutions have taken their general product offering to where the market is and have created business models that provide operational viability. The Islamic finance education sector, on the other hand like its industry counterpart, seems to look at hegemony as key. Staying rooted to theoretical education content across regions.
In a world where collaborative economy and disruption are now constants, such hegemony type of approach is akin to shooting down a dinosaur with a pea gun!
Where is the Islamic finance education today?
Looking at all the talk, in public domain and the chatter in the conference circuit, one would have to surmise that the sector is, indeed, in a stall. Whilst a lot of great advice is being offered, everyone everywhere, across is the industry is waiting for some else to pick up the leadership and the associated risks. The impact is dropping rates of academic and private programme applications and lack of jobs for qualified graduates along with dearth of innovation and creativity in the industry.
Going forward the Islamic finance industry has to decide if it wants to play in the global stage or otherwise. If it’s the latter, it is a must that the industry invest in the education sector in order to develop knowledge, skills, innovation and talent as it will require in the coming decade.