We must learn to learn from our success stories


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Have I got a great case study for you … That is not quite how I deliver my strategy and marketing training courses to clients - I don't want to come across as a slippery life insurance salesman. But in a training environment, delegates love to listen to stories and case studies about success and failure. It helps them understand what has worked for a certain company in a given situation and what pitfalls to avoid.

Inevitably, I get asked one particular question that stumps me: "Do you have any local or regional case studies that illustrate the management concept you are talking about?" You see, like others who deliver their training programmes in a "pocket-MBA" format, I resort to sourcing case studies prepared by the likes of Harvard Business School, the Kellogg School of Management, INSEAD and others. There is a healthy body of documentation available from these international business schools on a myriad subjects including strategy, human resources, marketing, finance, leadership and other areas of interest to students and managers.

And since the authors and contributors to these business schools are largely based outside this region, the case studies are written about organisations based in the US, Europe and some in Asia. Very rarely do you come across one set in the GCC or even the MENA region. There are a few, but not of the quality to put into a training programme. Yet all of us who live in the Gulf know there are some excellent corporate and organisational examples. Take the success of Air Arabia in outsmarting its peers; or the award-winning RAKBank that every year tops the banking league for customer service; or the hard-hitting Al Jazeera international news network that has changed the perception of Arab broadcasting in the global media landscape.

These and other trail-blazers are fine examples of world-class organisations. Unfortunately, in the majority of cases, their best practice has not been documented in a way that managers and students can discuss, study and learn from. So I end up teaching by anecdote. If these stories were documented within a management framework and subsequent case study it would prove an important source of knowledge for managers and students to draw on.

It could even assist with establishing better corporate practice, governance and entrepreneurship - after all success breeds success. David Jones, a senior adviser at Hewitt Associates, one of the world's largest HR outsourcing companies, agrees. "Local research is critical because to have full practical benefit in the workplace," Mr Jones says, "we need data that is both rigorous and relevant to working practices in the region.

"Importing best-practice approaches from outside the region and assuming that it is relevant to the situation of local organisations is not always useful." He also agrees there are plenty of good regional examples, such as the Islamic Development Bank, based in Jeddah. They have employed oral history techniques to capture the experience of innovators at the bank that were involved in the development of the sukuk and the imaginative use of financial waqf funds more than 30 years ago. But these have been primarily for internal staff consumption.

So why is there this lack of local management case studies to draw down on? First, a number of organisations in the region are prone to excessive secrecy and playing a game of smoke and mirrors. They are not willing to open up their management practices to outsiders. In the case of a poorly managed organisation, that is not a bad thing, since what we'd see would probably want to make us cry. But I am surprised when I see the same secretive attitude demonstrated by those organisations that are excelling in their fields. The best-known brands and most profitable companies around the world have reams and reams of management case studies written about them. They learn from these, improve what they are doing and then go on to the next level of their development.

The second reason for the lack of regional management case studies is that local business schools have not taken up the task of documenting best practice. To date they have focused their attention on bringing fat-fee paying students through the doors on to well-marketed MBA programmes. They have provided the students with some exemplary teaching through world-class faculty members but have failed when it comes to developing practitioners and capturing the application of the teaching locally.

There are some exceptions but unfortunately most business schools are not providing their students with the opportunity to reach out and do some genuine fieldwork. This also needs to change. "One hundred years ago, Japan was busy importing external best practices and nobody could have imagined that a distinctly Japanese management model would develop and dominate management thinking in some specific fields," Mr Jones says.

"There is no reason why a distinctly Arab approach to management shouldn't be equally valuable if we take the steps to appreciate and understand its strengths and have the confidence to implement our own approaches at work." The irony is that the greatest leaps in Arab scholarship and knowledge occurred when Arab scholars intellectually engaged the works of the Greeks and other ancient civilisations. Having mastered these, they then built on them to create new frameworks for thinking and development which other parts of the world adopted.

History has a way of repeating itself and sometimes in a positive way. Let's hope it doesn't take too much longer as I've got a training programme to deliver next month and will no doubt be asked the very same question. Rehan Khan is a business consultant and writer based in Dubai business@thenational.ae

What is blockchain?

Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.

The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.

Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.

However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.

Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.

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.”

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Defence review at a glance

• Increase defence spending to 2.5% of GDP by 2027 but given “turbulent times it may be necessary to go faster”

• Prioritise a shift towards working with AI and autonomous systems

• Invest in the resilience of military space systems.

• Number of active reserves should be increased by 20%

• More F-35 fighter jets required in the next decade

• New “hybrid Navy” with AUKUS submarines and autonomous vessels

The five pillars of Islam

1. Fasting 

2. Prayer 

3. Hajj 

4. Shahada 

5. Zakat 

WHAT IS A BLACK HOLE?

1. Black holes are objects whose gravity is so strong not even light can escape their pull

2. They can be created when massive stars collapse under their own weight

3. Large black holes can also be formed when smaller ones collide and merge

4. The biggest black holes lurk at the centre of many galaxies, including our own

5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed

What is dialysis?

Dialysis is a way of cleaning your blood when your kidneys fail and can no longer do the job.

It gets rid of your body's wastes, extra salt and water, and helps to control your blood pressure. The main cause of kidney failure is diabetes and hypertension.

There are two kinds of dialysis — haemodialysis and peritoneal.

In haemodialysis, blood is pumped out of your body to an artificial kidney machine that filter your blood and returns it to your body by tubes.

In peritoneal dialysis, the inside lining of your own belly acts as a natural filter. Wastes are taken out by means of a cleansing fluid which is washed in and out of your belly in cycles.

It isn’t an option for everyone but if eligible, can be done at home by the patient or caregiver. This, as opposed to home haemodialysis, is covered by insurance in the UAE.

While you're here

Banthology: Stories from Unwanted Nations
Edited by Sarah Cleave, Comma Press

Other acts on the Jazz Garden bill

Sharrie Williams
The American singer is hugely respected in blues circles due to her passionate vocals and songwriting. Born and raised in Michigan, Williams began recording and touring as a teenage gospel singer. Her career took off with the blues band The Wiseguys. Such was the acclaim of their live shows that they toured throughout Europe and in Africa. As a solo artist, Williams has also collaborated with the likes of the late Dizzy Gillespie, Van Morrison and Mavis Staples.
Lin Rountree
An accomplished smooth jazz artist who blends his chilled approach with R‘n’B. Trained at the Duke Ellington School of the Arts in Washington, DC, Rountree formed his own band in 2004. He has also recorded with the likes of Kem, Dwele and Conya Doss. He comes to Dubai on the back of his new single Pass The Groove, from his forthcoming 2018 album Stronger Still, which may follow his five previous solo albums in cracking the top 10 of the US jazz charts.
Anita Williams
Dubai-based singer Anita Williams will open the night with a set of covers and swing, jazz and blues standards that made her an in-demand singer across the emirate. The Irish singer has been performing in Dubai since 2008 at venues such as MusicHall and Voda Bar. Her Jazz Garden appearance is career highlight as she will use the event to perform the original song Big Blue Eyes, the single from her debut solo album, due for release soon.

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