Every morning when employees arrive at work, many gather at the proverbial water cooler rather than heading to their desks and firing up their computer to start the day. While technically at work, this "morning meet-up" has become a ritual. And the meet-ups continue through the day as employees connect around the cooler (which might in fact be a coffee machine, a smoking area or a lunchroom).
The "water cooler" is much more than a device that cools and dispenses water, it is synonymous with gathering and connecting people, usually in an office setting. When a television series is talked about among many people, it is "water cooler" material. The cooler or its proxy is the corporate gathering point where employees catch up on such personal topics as Arab Idol, corporate gossip and plans for after work.
In most managers' eyes, such behaviour is often filed under the heading of wasted time on the company's dime. "You're here to work. If you want to socialise, do it on your own time."
As leaders abhor the waste of time and fear the gossip that grows like a germ, they make a big mistake and try to remove the water cooler gathering. But instead they should try to take advantage of the water cooler and use it as an asset.
After conducting a round of interviews at a client's base, I interviewed the managing director. Listening to what he had to say, I interrupted and, pointing in the direction of the water cooler, said: "That is not what they [implying his employees] are saying". And he responded, "That is my problem, how can I get the right message to them [when I am in here]?" That's easy, go to them - use the water cooler.
I gave the same advice to the regional vice president of a global firm, who was leading his team through a challenging turnaround. He, too, wanted to know how to squelch rumours and drum the "heartbeat" of the firm. After making the "water cooler" a part of his daily routine, the workforce positively changed over the coming quarter.
There is no doubt that employees gather to "blow off steam", catch up and at times gossip. But if you ignore it, you forfeit the opportunity to contribute, shape it and build the informal relationships that aid leadership success.
Before the modern corporate ways, a hunter was be more likely to risk his life to save someone if they were a fellow tribesman and not a complete stranger. It is the same in today's corporate world; people work better together when they know each other on a personal level.
The seeming "down time" employees spend can actually help them do a better job, a lesson employers are learning. When you get to know your team on a personal level, they're more likely to give the extra effort for you.
Additionally, when they get to know each other informally, they're far more likely to give them the benefit of the doubt and to have goodwill when interacting with each other.
The water cooler or any other type of informal gathering is necessary to personalise the workplace so that we can achieve the coveted discretionary effort.
Tommy Weir is an authority on fast-growth and emerging-market leadership, an adviser and the author of The CEO Shift. He is the founder of the Emerging Markets Leadership Center
UAE tour of Zimbabwe
All matches in Bulawayo
Friday, Sept 26 – UAE won by 36 runs
Sunday, Sept 28 – Second ODI
Tuesday, Sept 30 – Third ODI
Thursday, Oct 2 – Fourth ODI
Sunday, Oct 5 – First T20I
Monday, Oct 6 – Second T20I
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
