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  • Human Intelligence provides the best of power skills

    I am excited by AI, but for a change let’s focus on human intelligence (HI) instead of artificial intelligence (AI). The cognitive-educational psychologist Howard Gardner’s theory of multiple intelligences used eight criteria to isolate different intelligences. The criteria include the ability being associated with a particular region in the brain, being measurable, and offering cases of prodigies who excel in that intelligence only. The intelligences include verbal-linguistic and logical-mathematical, both of which we would expect in any IQ test, and that computers are learning to do better than we can. But he also found musical-rhythmic, visual-spatial, and bodily-kinesthetic intelligences, and interpersonal and intrapersonal intelligences – what we now call emotional intelligence. After publishing his book Frames of Mind he added an eighth, naturalistic intelligence – understanding flora and fauna holistically in farming or ecology. And he considered an existential intelligence, that others might call spiritual intelligence. There are several there that are not currently replicable by machines. Of course for business the exciting side of AI is finding new opportunities to increase productivity and even create products and services that don’t yet exist. But how about creating businesses that focus on HI by drawing on what we do so much better than machines? Let’s recognise our strengths as a human species and optimise them. What are the implications for business?  Apart from using AI, monitoring it and learning all we can about it, we should equip ourselves and our teams with the very best of human capacities. Some of the “hard” skills currently in training curricula may become redundant, which gives us the opportunity to improve the so-called “soft” skills (increasingly being referred to as “power” skills) of personal and interpersonal effectiveness, together with strategic awareness and ethical judgement. Coaching, mentoring, and training can all be enhanced by AI, but the best still require human mediation. Creative problem solving and consulting are mostly human activities. Sport, entertainment and the creative arts are ours – Siri can tell a joke, but we don’t want an iPhone to be the stand-up comedian at our next show. Then there are things we can do, but need to do much better for the human species to thrive. Focusing on HI might help. We exercise moral judgement – sometimes. Put us together in large numbers and between us we have very fine judgement, if only we could listen to each other. We have an extraordinary capacity for empathy when others are in extreme danger or discomfort. What is the essence of being human? A Down’s Syndrome child teaches us that it may have nothing to do with the intelligence of machines. We are capable of great love. We have a talent for worship and an appreciation of the arts. We can use tools and machines to extend our abilities, and teams to multiply our wisdom, and so become far greater than we imagined. One fear about AI is that a rogue computer may develop autonomous motivation and decide to enslave or destroy the human species. But the more immediate threat is from humans using AI for nefarious purposes. We don’t know whether or not a rogue machine is a realistic threat to humanity, but we do know human nature well enough to be sure that rogue humans will use it at every opportunity for greed and to grab power. Imagine Donald Trump, Xi Jinping, Vladimir Putin, Kim Jong Un, not to mention well-resourced businesspeople like Elon Musk, each with access to uncontrolled AI. Never has temptation been so great, nor world leadership seemed so immature. So we should certainly look for ways to defend against a future AI threat, but let’s also focus on positive HI to counter the human threat and build the potential HI has for the human species. Jonathan Cook, a counselling psychologist, chairs the African Management Institute. If you’d like to read previous columns in this series or ask Jonathan a question please visit  http://www.africanmanagers.org/jonathan-cook

  • The transition to CEO brings a new identity

    A CEO of a mid-sized company recently told me that she had “forgotten” how to carry out her professional functions. I don’t think she has, but when she explained that, “it requires sitting down and thinking about it,” I understood. I expect that when accountants, lawyers, doctors and other professionals spend some years as executives or running companies, they too find that while they love their profession, they just cannot sit still long enough to practise it any more. Time feels like the executive’s scarcest asset, and over a few years the habit of using each moment productively becomes irresistible. Driving is for making phone calls, jogging or walking are for listening to podcasts, meetings offer time to answer emails, and the bathroom is for catching up on news. Sitting down to a few hours of concentrated bean counting seems like an intolerable indulgence. Is that a gain or a loss? It can be either or both, depending on how well the executive reserves time for home and recreation, and for reflecting about the purpose and health of their company. But this change almost inevitably comes with the transition to CEO, a profound step that requires and creates a change in self-image. That new identity brings new attitudes and behaviours. The passage from one state to another, with the accompanying change in the perception of the self, has been labelled a liminal experience, from the Latin for threshold. It happens when we change job, are promoted, have a major change in family status such as marriage or parenthood, lose a loved one, or experience life-threatening illness. Key to understanding liminality is understanding the associated identity change. I used to think that the passage to CEO requires one deep liminal transition, as the self-concept takes on all the attributes of being in charge. But now I realise there is at least one more that comes later. The belief that everything rests on me, and the company cannot afford a moment without my hands on the levers of control, changes again as I stand back and admire the competence and commitment of my team and let them take control. That’s a necessary liminal transition at least for founders who wish to remain as CEO as their companies grow. In his popular book, Atomic Habits, James Clear suggests that the way to change a habit is to change our self-perception. When we change our identity the new behaviours that reflect the new identity can become habitual. “Behavior that is not congruent with the self will not last,” he writes. So changes in leader behaviour only persist if based on a change in identity – from leader as boss, for example, to leader as facilitator or even servant. So if I want to found a company, I first need to practise regarding myself as a founder and CEO, with all the required disciplined and initiating habits. With my new status I am no longer comfortable with Incompatible habits like being passive or lazy. Then as the company grows, I may find my self-image changing again to that of a coach and facilitator, and my controlling, driving behaviours will seem less appropriate. Of course change in circumstances can be destructive too. If our identity and self-worth depend on our achievements or status, as in “wealthy” or “CEO”, then when the business fails or we retire, we may fall apart. We lose ourselves – surely the worst of all losses. A more sustainable underpinning identity is one based on the fundamental values and attributes that make us who we are, such as integrity, compassion, or creativity. This is our foundation through the changing professional identities as our career ebbs and flows. But that’s a topic for another day. Jonathan Cook, a counselling psychologist, chairs the African Management Institute. If you’d like to read previous columns in this series or ask Jonathan a question please visit  http://www.africanmanagers.org/jonathan-cook

  • Managers and owners have to cope with an epidemic of loneliness

    It seems that the Covid epidemic is being followed by an epidemic of loneliness. Or rather, lockdowns and the subsequent popularity of working from home have exacerbated an existing trend towards isolation. Airbnb CEO Brian Chesky is quoted as suggesting that loneliness might kill more people than Covid-19. The trend was noticed decades before Covid-19. Political scientist Robert Putnam tracked the decline of social capital in the United States from the 1950s in his book Bowling Alone. He suggested that we are losing opportunities for people to meet and make friends. Many of us will remember childhoods when we were far freer to drop in on friends and family down the road on our own. Cities bring people together in increasing numbers but then drop us into walled enclaves in which we may not know the names of our neighbours. According to the US Surgeon-General’s Advisory on the Healing Effects of Social Connection and Community, the rate of loneliness among young adults has increased every year between 1976 and 2019. This has consequences for physical health too. In a post entitled Health Risks of Social Isolation and Loneliness, the US Centres for Disease Control and Prevention (CDC) reports that social isolation increases the risk of dementia by 50%, heart disease by 29% and stroke by 32%. Those are startling numbers. The CDC estimates that loneliness costs the US economy an estimated $406 billion a year in addition to the estimated Medicare costs of $6.7 billion for isolated older people. The Surgeon-General reports that “recent estimates, based on synthesizing data across 148 studies, with an average of 7.5 years of follow-up, suggest that social connection increases the odds of survival by 50%.” Most of us whose staff disappeared into remote work when lockdowns struck took extensive steps to keep them engaged. We had online games and paired up buddies to call each other. Managers were exhorted to include chatting about non-work interests in their weekly conversations. Then the restrictions eased and we let those unusual steps lapse. Yet people are lonely when physically at work too. Based on his own survey of 2000 global workers, Ryan Jenkins found that lonely workers are less likely to be engaged at work, more likely to miss work due to stress or illness, and more likely to think about leaving their employer. “Loneliness is an unaddressed productivity killer that is incapacitating many teams.” This places an unexpected responsibility on the shoulders of managers. Loneliness affects productivity, and so should be a core concern. What can owners and managers do about loneliness among their people now? The US Surgeon-General’s report makes several recommendations for the workplace, including making social connection a priority for both management and employees, training managers to promote connection, creating a culture that encourages people to connect as people rather than just skilled resources, fostering inclusion and belonging, and implementing policies that protect workers’ boundaries and allow them to nurture relationships outside work. We could even train people in friendship. Sheridan Voysey, the founder of the Friendship Lab in the UK, points out that 51% of us find making new friends difficult: “Busyness, job changes and so many other things get in the way.“ That’s a particular problem if you change jobs, cities, or countries and leave old networks behind. So he has created the Friendship Lab course to teach people how to make friends. Those of us involved with small businesses may be so distracted by the multitude of daily pressures that we don’t notice those in our teams who are withdrawing or have no one to go home to. If you are unaware of this being a problem in your company, try implementing a survey asking members to report on it confidentially. It may surprise you. Jonathan Cook, a counselling psychologist, chairs the African Management Institute. If you’d like to read previous columns in this series or ask Jonathan a question please visit  http://www.africanmanagers.org/jonathan-cook

  • Continuing with the next step while things fall apart

    It’s hard to know what to write about small businesses when the mood in the country seems so universally negative. I have just returned from three weeks abroad and am struck by how quickly the mood is deteriorating. One does not want to add to the gloom, but it does not seem realistic to write cheerfully about business as usual either. Yet most of us need to continue as best we can with our business despite rolling blackouts, infrastructure collapse, local government collapse, central government malaise, currency collapse, corruption, and now foreign policy threatening further dark clouds on the economic horizon. So today I decided to dust off a story I used in the early days of Covid lockdowns in 2020. As chaplain to the South African Sixth Division in Italy in the Second World War, my father was visiting troops in a forward position. Dug into an isolated observation post ahead of the rest of the army on one side of a valley, they stared over to the other side where their equivalents in the German army were no doubt staring anxiously back. From time to time artillery shells screamed overhead, making them press down even further into the ground. But as they crouched and watched, something extraordinary emerged in the valley below. An Italian peasant farmer hitched up his horse and began ploughing his field! This was the season for planting. He knew that if he did not plant now, his family would not eat when harvest came. So, although caught between two huge and lethal armies, he carried on with the next thing that needed doing. He might seem pathetically vulnerable, surrounded by these mighty armies; yet it was only his steady ploughing and planting that in a few months’ time would provide for the future of his family. Entrepreneurs go into business because we like to control our own destiny. Yet we feel caught now between lethal forces way beyond our control. Like we did when Covid struck, we have to focus our attention on what we can do, finding ways to save our business and preserve our sanity. We dare not allow discouragement about things we cannot control prevent us from acting resiliently in the matters we can control. Resilience is one of the qualities found in successful small business owners. Personally we need to meet the usual requirements for physical and mental health: regular exercise, healthy diet and enough sleep, while maintaining healthy relationships and working on our own optimism. In the business we need ruthless honesty in examining possible scenarios and working out contingencies for each. We were inspired through the pandemic by businesses that responded by doing just this, and surviving and even thriving through new-found direction and discipline. The same prescriptions apply – watch cash flow, cut unnecessary costs, encourage staff, treasure existing customers, and look for new markets. A weak currency at least brings export opportunities for those with something to sell abroad. What may be different this time is that we are not facing a mysterious disease out there, but known economic, political and social failures created by people. Big business is stepping up to help national government fix services such as electricity, and is being urged to insist more assertively that government act honourably in the best interests of the country rather than narrow political interests or personal financial greed. Is there a similar role for small business owners at the local level? This need not be political; there are many dedicated officials who are probably just as fed up with squabbling elected representatives as we are, and who would welcome support on the ground. If nothing else, it would help to preserve our own sanity to be doing something constructive. Jonathan Cook, a counselling psychologist, chairs the African Management Institute. If you’d like to read previous columns in this series or ask Jonathan a question please visit  http://www.africanmanagers.org/jonathan-cook

  • Creating jobs requires fertile soil for small businesses to survive and grow

    World Bank economist Jacques Morisset writes that the net rate of entry of new firms in South Africa is about 60% lower than in countries with similar income levels. He says the economy lacks dynamism. Every time I travel through the rest of Africa or overseas, I notice the contrast in the exuberant buzz of little companies. South Africa has been very successful in creating big companies, but we need more lovely family businesses that employ fifty people and provide quality goods and services. The numbers do not support the image of an entrepreneurial nation. It’s not all bad news. The government and private sector have put a huge effort into encouraging the creation of small businesses. Stats SA reported that small businesses generated 22% of total turnover in the formal business sector in 2019 compared to 16% in 2013. That’s still low, but it is good growth. To sustain this growth maybe the soil in which businesses grow needs attention. Morisset suggests two reasons for South Africa’s slow economic development: low public investment in physical and social infrastructure and a loss of “innovative drive” in many businesses. Most readers will recognise the first of these. SA’s public investment has been only 2.9 % of GDP a year over the past two decades, which is about 5 percentage points lower than many countries in East Asia and a fraction of China’s 20%. This is reflected in failing infrastructure – think Eskom and Transnet. But economic reasons don’t explain it all. There’s a deeper malaise, a toxic blend of corruption with a lack of skills and an apparent lack of commitment and initiative that wastes the public investment that does occur. This was illustrated in the shocking news that 81% of grade 4 children are unable to read with understanding. We spend a lot of money on education. It still does not work. That is unforgivable. We have a management problem and a leadership vacuum. But what about the second of Morisset’s levers, the lack of innovative drive in business? Many are looking to the private sector to save the economy. Is he serious? He attributes the drop in labour productivity in all sectors over the past few decades to a lack of competition, in which poor-performing firms are replaced by more productive ones. Again, that macro-perspective does not explain all that is happening. We do have some world-beating businesses with highly innovative ideas (think Discovery, for example) and some exceptional business leaders; but why too few? Clearly for 80% of South Africans apartheid denied exposure to business and opportunities to try it out. It takes special leadership to reverse the subtle effects of deprivation and helplessness when it blankets whole communities and paralyses the mind. Our education system does not encourage enterprise. I recently saw first-hand how Sweden’s school system encourages learners to follow practical and highly valued technical options in high school, with career-related skills they can apply immediately, often in their own businesses. What a tragedy that technical skills are regarded as second-class in SA when we need them so desperately! Then well-meaning officials in government who have never run a business create policies and projects with unintended consequences that kill the small businesses that do exist. Maybe if we supported existing businesses as much as we encourage young people to create new ones, we would create more jobs. It’s hard to overstate the discouragement as entrepreneurs’ dreams are shattered by disasters of human origin, like load shedding, corruption, irrational regulation, and so on. Why bother wasting one’s life savings? Wouldn’t it be great if, instead of just planting more entrepreneurial seeds in hostile soil, we could make the soil fertile? Then the plants would grow by themselves. What an opportunity for leadership. Jonathan Cook, a counselling psychologist, chairman African Management Institute. If you’d like to read previous columns in this series or ask Jonathan a question please visit http://www.africanmanagers.org/jonathan-cook

  • Getting a job in a small firm requires a different approach from a big firm

    What do you have to do to get a job in a start-up? I was thinking about this in a job readiness workshop at a local church, and hearing how discouraging it is to keep sending CVs to companies that don’t want you. I have recruited for large organisations and my small businesses, and know that small entrepreneurial firms select employees very differently from how big established firms do. Because large organisations receive thousands of applications, they have a process led by HR to sift them and only take seriously the few who meet all the specifications. To do this they create job descriptions and person specifications and convert them into job adverts and screening and interview schedules. The manager with the vacancy may sign off the advert at the beginning, and at the end may be included in the panel to interview the shortlist. This process allows relatively junior staff to sift through the pile of applications by comparing them with the job spec. To avoid bias they apply the spec consistently and mechanically. Those applications that do not meet all the specs are discarded, while the survivors are scored to identify three or four to be interviewed. So to get into an interview, applicants have to ensure that their CV and cover letter are perfect and perfectly consistent with the advertised criteria. That is why some well-qualified, wonderful people never get jobs – amongst the thousands, their CVs are just not as impressive, or miss some point in the specification. Sad. Small start-ups don’t have HR and don’t have policies or processes for recruiting people. That can be awful – the founder meets a smooth talker at a party and hires them on the spot. Or it can be wonderful – the founder picks out the very best from their great network of people who know the industry, pays them whatever is needed to attract them, and the business booms. So for getting into small owner-managed firms, the CV is far less important than meeting the owner. Your network is really important. Hiring people is a big deal for entrepreneurs. On the one hand, they know they need staff to grow, and they need skills and experience that are not in the company. Often they are bored stiff by some parts of running the business and need to return to the things that ignite the passion that led them to start their business. On the other hand, because they generally do not have a pile of cash to pay you, they won’t want you unless you can convince them you will add far more value than you will cost. They may be scared of bringing an outsider into a responsible position, where a careless person could wreck the company through compromising on quality, being rude to customers, treating other staff badly so key personnel leave, not containing costs, stealing intellectual property or simply stealing money. This means if you want a big position in a promising small company, you need an impeccably honest record. You need to demonstrate that you can offer tangible economic value and not destroy the intangible culture of the company. You need to convince the owner that you will do whatever it takes legally to make the business thrive, at whatever personal cost. But you also need to convince the owner that you are not there just for your benefit, to take the expertise and network you gain and start your own business in competition. And it reaps if you like each other. That means that just as entrepreneurs are extraordinary people, so are the senior staff in a small venture. That will make a good topic for a further column. Jonathan Cook, a Counselling Psychologist and Chairman of the African Management Institute. If you’d like to read previous columns in this series or ask Jonathan a question please visit http://www.africanmanagers.org/jonathan-cook

  • Customer Care can Make a Small Business Stand Out

    What makes a business stand out? I took my MacBook in for upgrading recently, choosing ZA Support on the basis of online reviews, which all mentioned excellent communication. When I booked it in online, Elise responded and opened a WhatsApp group of me, her and Courtney who runs the workshop. When I took the Mac in, Courtney himself met me at my car, and from then on I was kept informed throughout the two days, and was able to post questions and requests. What a pleasure. Fixing Apple Macs is not a field in which one can compete much on price – Apple parts cost what they cost and are usually the major item in the repair bill. And while the quality of work clearly counts, it’s not easy to judge this from the outside. That leaves customer service as the area with the most latitude to differentiate oneself. Courtney is the founder, owner and CEO, with forty engineers working on clients’ machines. I asked him where the level of customer communication came from. “As consumers our greatest frustration is not knowing what’s going on, or that someone in there really cares about us,” he explained. “Large companies can lose touch of this and end up treating you as a number, not a customer.” The result of Courtney’s focus on customer care is that ZA Support thrives on repeat business – on average their customers will come back six to eight times over five years. Courtney follows the wise path of surrounding himself with people who are smarter than he. But they must be genuinely committed to the principle of caring for customers. He has learnt to fire fast but hire slowly, as having the right team is the key to quality, service and accountability. He says his worst mistake was micromanaging, so now before hiring someone, he takes great care to document exactly what the person needs to do and how it must be done. Then once he has found the right person, “It’s a marriage, based on trust.” He lets the techies get on with what they are good at and love. “These are people who are better than I am in the role,” he explained. And many of them are introverted, while he loves interacting with people. A few years ago the business was robbed and lost R3 million worth of material, including client equipment containing confidential information. It was an existential crisis, but he survived and moved the business into a secure building with no customer access. Why does he stay in South Africa? “There is a huge opportunity in SA. It is a marathon, but I don’t believe the grass is necessarily greener elsewhere. To succeed here you have to do something meaningful and solve a real problem. To survive in Africa is a true test of yourself. And I like fixing broken things.” Entrepreneurs need unbounded energy to put in whatever it takes. “If you don’t do something that scares you each day you’re not pushing yourself.” Courtney’s burning desire to succeed arises from having nothing. He left home at 17 and was literally homeless for a while before he found a job at an Apple shop. When it closed and he was retrenched, he started ZA Support with R10 at age 19. He has turned the disadvantages of his past into an enabler: “If I could survive my hardship, I can do even more.” This provides some ideas about what makes a business stand out: Find a distinctive competitive advantage, as Courtney did with customer service; push the limits of it beyond what others do; draw on your own deepest well of energy to implement it; and find others willing to share that passion. There’s lots more in Courtney’s and others’ stories. What have you noticed? Jonathan Cook, a Counselling Psychologist and Chairman of the African Management Institute. If you’d like to read previous columns in this series or ask Jonathan a question please visit http://www.africanmanagers.org/jonathan-cook

  • Transforming Workplace Learning in Africa

    In an insightful interview, we sit down with Asha Mweru, the Managing Director of AMI Enterprise, to explore the transformative journey of workplace learning in Africa over the past five years. Asha highlights the dynamic shift from traditional classroom-based training to more learner-centric approaches, empowered by technology and digital platforms. AMI’s role in this transformation is prominent, offering cutting-edge learning programs tailored to meet the unique needs of professionals in Africa. Moreover, Asha introduces the concept of “Powerskills” – essential competencies that transcend technical expertise and drive personal and professional growth. She shares her own powerskill – effective communication – and emphasizes resilience as the often-overlooked yet crucial powerskill that enables individuals and organizations to navigate challenges and maintain success amidst a rapidly evolving business landscape. Join us as we delve into the empowering world of workplace learning in Africa and discover the fundamental powerskills that uplift careers and drive success. Let’s dive into the interview with Asha Mweru, whose vision and leadership have been instrumental in shaping the future of professional development across the continent. How has workplace learning in Africa evolved over the past five years? Over the past five years, workplace learning in Africa has experienced a paradigm shift. Organizations have moved away from traditional classroom-based training to embrace more dynamic and learner-centric approaches. With the advent of technology and digital platforms, there is a growing emphasis on e-learning and mobile learning solutions. These advancements have made learning more accessible, personalized, and adaptable to the needs of individual learners. AMI has been a key player in driving this transformation, offering cutting-edge learning programs designed to equip professionals with practical skills to navigate the challenges of the ever-changing business landscape. In your own words, How does AMI contribute to the shift in workplace learning in Africa? AMI has been instrumental in revolutionizing workplace learning across the continent. By curating customized learning journeys and adopting blended learning approaches, AMI ensures that professionals gain hands-on experience and real-life application of the skills they acquire. Through a combination of online and offline interactions, AMI fosters a collaborative and dynamic learning environment that encourages peer learning and practical problem-solving. The programs are designed to align with the unique needs and challenges faced by African businesses and organizations, making AMI a trusted partner for professionals seeking to elevate their careers and drive success in their respective industries. 💡  What is a Powerskill? A powerskill is an essential competency that goes beyond technical expertise and encompasses a range of soft skills and attributes that empower individuals to excel in their roles and drive success. Powerskills are the driving force behind personal and professional growth, enabling individuals to thrive in diverse environments and navigate challenges with confidence. Understanding one’s powerskill involves self-awareness and reflection through self-reflection, seeking feedback, identifying patterns, observing interactions, assessing impact, and aligning with values. Embrace a growth mindset and be open to continuous learning, as your unique powerskill may evolve over time with new experiences and insights. Your powerskill is what sets you apart and empowers you to make a meaningful impact in your personal and professional life. 🌟 What’s your own Powerskill? For me, effective communication is the very foundation of strong leadership—it empowers me to connect with my team and clients on a profound level. Understanding their needs, challenges, and aspirations through empathy has been instrumental in driving positive change and fostering growth within AMI Enterprise. 🔍 The Most Overlooked Powerskill? The most overlooked powerskill, in my view, is “resilience.” Amidst the fast-paced and ever-changing business landscape, resilience empowers individuals and organizations to bounce back from setbacks, adapt to challenges, and keep moving forward. It is the inner strength that enables us to stay focused, determined, and optimistic even in the face of adversity. Embracing resilience as a powerskill can truly make a transformative difference in navigating the ups and downs of both personal and professional journeys. Workplace learning in Africa has undergone a remarkable transformation, embracing dynamic, learner-centric approaches with the aid of technology. AMI Enterprise, led by Asha Mweru, has been at the forefront of this shift, empowering professionals through cutting-edge programs tailored to their unique needs. The concept of “Powerskills” has emerged as a key driver of success, emphasizing essential competencies like effective communication and resilience. As we venture into this empowering journey of continuous learning, AMI Enterprise is ready to be your partner, unlocking the extraordinary growth potential for African companies and individuals alike in the ever-evolving landscape of professional development.

  • Telling the Truth is the Lubricant for Good Business

    Warren Bennis is quoted as saying that “Trust is the lubrication that makes it possible for organizations to work”. Without trust, business becomes a laborious and inefficient effort to protect one’s interests. You learn to trust me over time when I keep my promises, pay what I owe, invoice only for what I have supplied, provide the very best product or service that I can even when you are not watching, and show that I have your best interests at heart. Trust is a product of consistent integrity. It’s the best long-term marketing tool and a wonderful recruitment agent for the best talent. Paradoxically, trust is underpinned by clear, enforceable contracts. Good fences make good neighbours, and clear contracts make good business partners. The outer sanctions of law-enforcement and social opprobrium for dishonesty, and the inner sanctions of conscience and generosity feed each other and create a culture in which business can thrive. Trust is an underrated component of good business. It complements rather than contradicts competition. Those of us who believe this have a duty to talk about the need for integrity in creating trust. We cannot allow media and conversations to be dominated by stories that “everyone does it” when referring to dishonesty and self-interest. Without doubt there is far too much dishonesty and corruption in business, but it is not true that “everyone does it”. In the companies I am involved in, the only sure way to be fired is to act dishonestly. We haven’t had to fire anyone for some years now, and what a pleasure it is to work together in warm, supportive and highly effective teams of trustworthy colleagues. There have of course always been crooks in business and there always will be; but I fear the trend now may be towards less honesty and more corruption. One major contributor to this trend is that lies have come to taken for granted in the very visible realm of international affairs and government. That is an appalling attack on society. Presidents and rulers and mayors have always told lies, but we all knew they shouldn’t. So they had to be very careful to hide their lies and mostly they had to be honest. Not today. Lying has become a virtue. Ex-president grumpy Trump is known by everyone as a total liar. Yet he is again a serious candidate for their next election. Russian President Putin straight-facedly says his invasion of a smaller independent country was his enemies’ fault. The closing declaration of last week’s BRICS meeting “reaffirmed” its commitment to “ensuring the promotion and protection of democracy, human rights and fundamental freedoms for all.” Wow. That comes from a community that includes Russia and China and has just admitted six new members including autocracies known for repressing women, jailing journalists and executing dissidents. It is self-evidently a lie. The only reason we pay attention to anything almost any world leader says is to decipher what they are signalling about their own interests. That is no foundation for trust. I wish our country’s politicians would speak the truth, whether to East or West, North or South. We would admire them so much more. When Nelson Mandela based foreign policy on principles, South Africa’s standing was at its highest and most nations wanted to do business. One can work with everyone and remain neutral without agreeing with their lies. The current lot let silence take sides. As business people let’s tell the truth to each other and to politicians. We can label lies as lies forcefully while being polite and respectful, as our aim should not be to score cheap points, but to build a better society and stronger economy. It’s our duty to our grandchildren to be that example. Jonathan Cook, a Counselling Psychologist and Chairman of the African Management Institute. If you’d like to read previous columns in this series or ask Jonathan a question please visit  http://www.africanmanagers.org/jonathan-cook

  • Creating Heritage is Every Business Leader’s Responsibility and Opportunity

    South Africa’s Heritage Day on Sunday was another opportunity to celebrate the wisdom of those who brought us freedom and democracy. They turned Shaka Day, a potentially divisive commemoration of the creator of the Zulu nation, into an occasion for national unity – even if the most uniting symbol that could be found is a braai. Celebrating the heritage left by our heroes inevitably raises the question of what legacy the current lot in charge will leave as a heritage for future generations. From that depressing thought, the next step is for each of us to consider the legacy we will leave. The business community recently lost Raymond Ackermann, someone who surely left a fine legacy. We like to speak well of the dead, but the warm tributes were genuine in his case. He built a fine, innovative business in Pick ‘n Pay, and on the way left innumerable stories illustrating the principles that guided him, both in public and in quiet personal care away from the spotlight. I looked up my column in January 2020, celebrating the life of Richard Maponya. He left a mall, but he left much more in his example and the support that helped so many other entrepreneurs get going. What sort of legacy will you leave? Life happens, and before we know it, our legacy is created or lost in a way we might not have intended. This is an important question business owners and leaders should all pause and review from time to time. If you will forgive a personal perspective, I realised just in time that I had just such an opportunity. I was in Nairobi over the past week, meeting with our top team to consider our plan for 10X growth over five years – a next step towards creating the scale that would leave a visible legacy. By very good fortune, and I confess quite unintended, my wife and I had three days in the Drakensberg before I travelled, walking and contemplating. I set myself the task of listening to the wilderness and the Spirit. A personal perspective turns Heritage Day from a celebration of the past to a vision for the future. It may be inspired by past heroes, but requires an honest perspective on what has to change for us to leave a better world after us. There is no merit in looking back to a golden age that never existed. We need to look forward to a future that many young people are claiming, to which the harsh lessons of history should be calling us. If my generation does not discover and teach the hazards of living globally without morals and rules, shame on us. It will make the task of the next generation that much more difficult. As we hurtle towards climate change, while planning to settle in space; as we use gene manipulation to create new forms of life, while refining our capacity to destroy humanity with weapons of mass destruction; as we create extraordinary machine-based intelligence, while struggling to develop the capacity for global empathy that will determine whether these amazing technical developments rescue us or destroy us, we have to stop and listen and think. It’s every leader’s responsibility. What legacy will you leave? To answer this myself I need to be clear about the values I espouse, and I have to embed them practically in the stories, behaviours and processes of the company. I doubt I have enough time left to see us fulfil our mission on the scale I dream of, so the critical question becomes: How do we create an organisation fit for our mission, and then how can I extricate myself so that no one notices I’ve gone? I think that’s a good question even when you are young. Jonathan Cook, a Counselling Psychologist and Chairman of the African Management Institute. If you’d like to read previous columns in this series or ask Jonathan a question please visit  http://www.africanmanagers.org/jonathan-cook

  • How to Embed a Leader’s Vision in the Company

    How could a company with as strong a heritage as Pick n Pay fall behind the pack it used to lead? Under founder Raymond Ackerman and Sean Summers, Pick n Pay dominated the grocery sector and enjoyed a reputation for low prices and excellent customer service. In recent years it has surrendered this lead in growth rates and public reputation to Shoprite. Now the Pick n Pay board has brought Sean Summers back as CEO 16 years after he left the job, hoping he will restore the company’s magic. Is it inevitable that charismatic leaders’ passion will dissipate after they leave? It’s difficult to think of an exception. Apple comes to mind, but Steve Jobs had to return to revive Apple after he was forced out in 1985. A much-described exception that perhaps proves the rule is Disney. Its operating practices and Disney University have deeply entrenched and helped retain its magic for several decades after Walt Disney died in 1966. Founders can’t really be faulted for the antics of their successors – even Jesus left behind a movement that took the shape of the hierarchical Roman empire rather than retaining his teaching about servant leadership. Now it resembles more the religious structures he wanted to replace than the organic and inclusive community he described. So was my previous column about leaving a legacy misguided? I don’t think so. The leader should focus primarily on embedding purpose and values for current performance. That lays a foundation for successors who must determine the future. Here are my thoughts on the matter. I would be really interested to hear your examples of leaders who have embedded their magic sauce into organisations. Most important is that standards of exemplary service, collaboration, efficiency and innovation should be written into operating practices. These written practices should include why they are important, so they can be interpreted and updated as times change. The purpose should determine the practice, not vice versa. Then the company should have a charter or slogans describing its purpose and key values. Do written documents help? Writing them clarifies ideas that otherwise are lost. And like scriptures, they provide the basis for later generations to recover a lost mission. Professor John Cumpsty at UCT used to explain the role of priests, prophets and kings in history: Priests are conservatives who retain the tradition in the scriptures. Prophets are radicals who renew the tradition. Kings are pragmatists who put bread on the table for both. Without priests the prophets have no tradition to renew; without prophets the priests’ tradition dies; without kings they both starve. Applied to business, a wise board will put a pragmatist in the top job. Then wise pragmatists will find space in their teams for both irritating conservatives and scary radicals so that the company’s governing principles and traditions are both maintained and challenged. New members should be hired for commitment to mission and values – but not for conformity. Practical ways of testing for this should be written into the recruitment and hiring process so they are not forgotten. The company’s orientation programme should include creative ways to help new members resonate with the company’s purpose and values. Even the most committed members can lose touch with the company’s purpose, so repeat it regularly in creative ways. The reward system should acknowledge contributions consistent with the purpose. Regular check-ins between managers and team members should include a question each on the mission and the values. Claire Hughes Johnson, drawing on experience in Google and Stripe, has written a very practical and helpful book explaining just how to do all this – Scaling People: Tactics for Management and Company Building. Maybe the most challenging task is also the most effective: the leader should be the living embodiment of all this. Jonathan Cook, a Counselling Psychologist and Chairman of the African Management Institute. If you’d like to read previous columns in this series or ask Jonathan a question please visit  http://www.africanmanagers.org/jonathan-cook

  • Succeeding as countries and businesses requires learning from everywhere.

    Succeeding as a business in a competitive market requires continual vigilance, innovation and experimentation with new markets, products, technology and processes. In the same way, succeeding as a country in a competitive global environment requires continual vigilance, innovation and experimentation with new alliances, investment, research and policies. The world is moving so quickly that remaining competitive has to be a collaborative task between public and private sectors, together with entities like universities, research organisations and media that produce and disseminate knowledge. Countries are bound to be at a disadvantage in the global market when ideological or other differences drive apart those who make policy and spend national budgets from those who create businesses that employ citizens and pay taxes. We need each other. I was reminded of this last week while reading The Startup State, the weekly email bulletin from the Global Entrepreneurship Network Policy and Research team. It highlights key entrepreneurship news and features from around the world. I expect there are dozens, if not hundreds, of similar rich sources of information in different fields. In that issue, for example, there was news of France copying the UK’s tax relief for angel investors in startups. From 2024, individual investors in ‘young innovative companies’ will get a 30% income tax break. Ireland has announced changes to capital gains tax, investor tax reliefs, and the research & development tax credit in their latest budget. The Tanzanian Startup Association clearly has been watching, because it has called for the creation of a public-private Tanzania Venture Capital Fund and the urgent establishment of a Tanzania Startup Policy. Maybe this was inspired by examples like Nigeria’s Startup Act of 2022, which offers tax relief, seed funding, capacity building and regulatory assistance. We can learn from everywhere. The newsletter also drew my attention to an organisation called Rest of World, which reports on technology news outside the West. For example, in a report called “West vs Rest”, they identified forty companies they describe as, “Faster, smarter, more adaptable: these emerging market pioneers are outmanoeuvring Silicon Valley for global domination.” African firms among them include M-Pesa, Transsion, Jumia, and Showmax. I disagree with some of those inclusions and some exclusions, but they do inspire entrepreneurial ambition. Also in the GEN newsletter is a reference to their GEN Atlas, “the world’s largest entrepreneurship policy compendium, featuring over 350 case studies from 70 countries.” The Atlas reviews innovative cases of policy-making and evaluates them on five levels of evidence they provide, ranging from the lowest level of no evidence to the highest level of providing direct proof of impact, including randomised control trials. Last week’s GEN Atlas spotlighted Europe’s Erasmus for Entrepreneurs scheme (EYE). This Europe-wide initiative pairs youth entrepreneurs with experienced entrepreneurs in a different country. This benefits the young entrepreneur in the form of on-the-job training, and also the host entrepreneur, who receives an ambitious and motivated employee for up to six months. EYE claims that almost 11,000 exchanges had taken place with 36.5% of those participating in the program going on to create their own business. How does one keep up with all this policy information? I hope there are people in government who have the initiative and humility to network with clever people at home and abroad who can alert them as new ideas emerge. A country that is not innovating is depriving its citizens of future prosperity and health. Networking is a powerful determinant of success in almost every field. The job description of those in positions of authority and influence should include keeping abreast of examples that can inspire their own initiatives. Scanning the environment for new ideas is already in the job description of all CEOs. And let’s work together to share experiences, insights and cases to learn from. Jonathan Cook, a Counselling Psychologist and Chairman of the African Management Institute. If you’d like to read previous columns in this series or ask Jonathan a question please visit  http://www.africanmanagers.org/jonathan-cook

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