THE CHANGE JOURNEY KRA`S Five Years of Progressive Transformation Under the Leadership

A PUBLICATION OF THE KENYA INSTITUTE OF MANAGEMENT October 2016

KSHS 350 TSHS 6,490 USHS 10,330 rwF 2,700 US$4

Three lessons I learnt after losing a job >>Pg 72

THE CHANGE JOURNEY KRA`s five years of progressive transformation under the leadership

of Commissioner General, John Njiraini. 6164001 157003 >

Posta`s key innovations to meet the needs of Kenyans

>> Page 34

CONTENTS 26 October 2016

regulars 14. neWS ANALYSIS - In the interest of the borrower

26. sPECIAL REPORT - Measurement is key in sports marketing

Leadership 48. executive chat - Beyond skin colour

60. hands on management - Why companies fail in strategy execution

FEATURES 64. tactics - Impress the customer through the 5s philosophy 76

68. MONEY MATTERS - Kenya’s economy looks up

70. health - The travellers’ sickness

Entertainment

76. TRAVEL - Ngong Hills escapade

78. mOTORING - Smooth road to car ownership

October 2016 1 Management Magazine FIRST THOUGHTS The benefits of sporting activity

By MARIANNA KEMEI

o doubt, sporting is a big Williams are reported to be the highest- industry not only locally but earning sports personalities. Nalso internationally. Powerful 3. Media organisations are in existence just to Sports has also impacted the media HEAD OF COMMUNICATIONS AND CORPORATE AFFAIRS: manage certain sports. In football, industry significantly. We have Miriam M. Chege ([email protected]) there is Confederation of African television channels and magazines Football (CAF) for the continent with EDITOR: that are dedicated to sports stories. Tabitha Areba ([email protected]) 54 members. Council for East and Special desks dedicated to sports have Central Africa Football Associations been established in newsrooms with SUB EDITOR: (CECAFA) manages regional football, journalists and editors that are fully Murugi Ndwiga ([email protected]) whereas Kenya Football Association dedicated to this beat. This has created STAFF WRITER AND PHOTOGRAPHER: (KFA) manages Kenyan soccer. We also employment and revenue opportunities Sammi Nderitu ([email protected]) have the International Amateur Athletic for media houses. Federation (IAAF) among many other

DESIGN & PRODUCTION: associations. These organisations have 4. Social-psychological benefits Vincent Mwai ([email protected]) a lot of influence on issues related to Under education, various authorities sports rules and beyond. Sporting have data that shows that children who CONTRIBUTORS: has created opportunities for various play certain games are less likely to drop Marianna Kemei, Joseph Nyanchama, Kenneth sectors. out. Young sportspersons are likely to Gitonga, Pouline Lumiti, Stella Rop, Tyler C. Beaty, Lizz acquire emotional control, appreciate Wambua, Michael Wachira, Sammy Likhali, Joyce 1. Manufacturing teamwork, and people’s skills that can Kaduki, Chris Harrison, Rick Rogers, Obiero Onyango, Manufacturers and suppliers of contribute to a better public. Muindi Kimanzi, Sanchia Temkin, Francois Van Dyk, Kevin facilities, equipment, kits, and gear Mabonga command a sizeable economic share. No 5. Goodwill activities one factory that can claim to cater for PHOTOS: Sammi Nderitu, Shutterstock photos Sportspersons are hired as goodwill an entire range of sporting needs. They ambassadors for commercial brands

HEAD OF SALES: can specialise in clothing and further and social causes since they command Anthony Githendu ([email protected]) narrow down to footwear, swimsuits, influence. Tegla Loroupe is a powerful helmets, or tracksuits, or specialise in ADVERTISING SALES (KENYA): peace ambassador for warring societies, Elizabeth Mbinya, Boaz Kisero, making kits such as balls, rackets, bats, especially among cattle rearing Rose Osok, Titus Omondi, Charles Chege. and nets. Others will supply facilities communities. such as the golf courses, racing tracks, ADVERTISING & SUBSCRIPTION (UGANDA) gyms, and stadia. 6. Wellness and health Boaz Amutuheire ([email protected]) The United Nations Inter-Agency Task 2. Clubs and sports people ADVERTISING & SUBSCRIPTION (RWANDA) Force on Sport for Development and Patrick Ojil ([email protected]) Some football clubs are hugely Peace found that young people can endowed with financial resources. profit from physical activities as it adds CIRCULATION ENQUIRIES Forbes names top three world’s most to developing fit bones, effective heart [email protected] valuable football teams as Real Madrid and lung function, as well as improved PRINTED BY: MORDERN LITHOGRAPHIC LTD. with a worth of 2.52 billion pounds motor skills and cognitive ability. With Barcelona, 2.46 billion pounds and PUBLISHER sports, idle time can be filled with THE KENYA INSTITUTE OF MANAGEMENT, Manchester United 2.3 billion pounds activities that are healthy and Luther Plaza, 2nd and 3rd Floor, respectively. Some of these amounts positive. Nyerere Road/University Way Roundabout can run a small country. For the sports P.O. Box 43706 - 00100 Nairobi, Kenya. people, Cristiano Ronaldo, Lionel Tel: 020 2535277 Messi, LeBron James and Serena Email: [email protected]

2 October 2016 Management Magazine October 2016 3 Management Magazine Perspective Why a clear business model is key for every venture

that interrelate to make it work in various segments. It defines how effectively. These components include the organisation builds and gains the the producer - the entity that offers a customer’s trust. It defines how the product or service. In most models, customers perceive the organisation the organisation itself fills this and its products. This is where brand position as it is the producer of the recognition and customer service care product. fall. The primary purpose of a business Where the organisation is involved model is to define what the business in distribution rather than actual is, or what it intends to be over time. It production, that organisation is the helps clarify the purpose, direction and producer of the delivery system. vision of the business even better. The delivery system is the product. There is then the value proposition. Business plan This is the perceived value your The business model is the mechanism The primary C products provide as the solution to through which the organization purpose of a M the consumer’s problem or need. generates its revenues, while the business model is Y This does not have to be a physical business plan is a document presenting to define what the product, it also includes services, the organisation’s strategy and the CM

business is, or what digital products, intellectual property projected financial performance. The MY it intends to be and ideas. Value preposition business model describes how the CY over time. It helps addresses and solves a specific organisation is positioned within CMY clarify the purpose, need. It is common practice to have its industry and how it organises its K direction and vision interrelated value prepositions, where relations with its suppliers, clients, and of the business even several needs are addressed by the partners in order to generate revenue. better.” same organisation on related needs. The business plan then translates this The most common of this is sale and positioning in a series of strategic after sale services. actions and quantifies their financial By DAVID MUTURI impact. It is therefore safe to say that Market segment the business model is at the centre of the t is common for organisations Market segment is the group of business plan. to struggle with their business consumers the organisation intends Business models are evolving very Imodels, especially where there to offer the value of its product fast, sometimes with catastrophic has been no deliberate effort to craft to. Different markets will use the effect on traditional models. Some are and constantly review the model same product, or similar products. so disruptive that they are confining or where too many activities are Organisations segment the market some industries into the annals of confused with the business models. based on various characteristics to history, particularly where they ride Creating a business model isn’t offer maximum value and maximise on new technologies. That is why it simply about completing your revenues. is important to constantly review an business plan, or determining which The sixth component is the organisation’s business model to test its products to pursue. It is about distribution channel. This is the how robustness, but even more importantly mapping out how you will create of getting the product to the target to continuously innovate so as to stay ongoing value for your customers. market through advertising and ahead. Quite simply, a business model distribution to retail outlet. is how the organisation makes Finally, there is the consumer Email: [email protected] money. It explains the sources of the relationship. This is how the This article was first published in organisation’s revenues; how much organisation establishes its the Daily Nation newspaper on 13th and how often. A business model is relationships with its customers September 2016. made up of seven key components

4 October 2016 Management Magazine C

CMY

October 2016 5 Management Magazine Advertising Feature We mitigate investment risk in Africa The African Trade Insurance Agency (ATI) was created to fill a market gap in trade and investment risk mitigation in Africa. GEORGE OTIENO, ATI Chief Executive Officer gives highlights about the company’s role in the provision of insurance and financial products, in partnership with the private and public sectors.

domestic banks, our insurance is a risk share mechanism and acts as additional collateral. As a result, when we support loans, imports or exports, we make African businesses more competitive. Through surety bonds, we support insurance companies and banks to access additional capacity. This reflects our mandate to not compete in markets where we operate.

2.What key transformations has ATI undertaken to ensure effective service delivery? Thanks to a grant from the African Development Bank, we are in the process of implementing an underwriting system that will help us better manage our business and respond to clients more efficiently. A grant from the European Investment Bank is also helping us keep up to global standards in terms of risk retention limits, strengthen our already George Otieno, ATI Chief Executive Officer. Photo: Courtesy. robust enterprise risk management By KEVIN MABONGA framework, and reshape our internal underwriting processes. 1.ATI offers four main products goods and services. to the public. What are these In the Trade Credit Insurance or 3.The high cost of doing business products all about? commercial risk insurance, we support has been cited as one of the major ATI offers political risk insurance (PRI), traders selling goods/services on challenges in Africa. What has ATI trade credit insurance, surety bonds deferred payment terms or lenders to done to check on the cost of doing and reinsurance capacity to insurers private counterparties. We support business in this continent? for political violence, terrorism and imports but can also insure exports to For us, the high cost of doing business sabotage. Through PRI, ATI protects anywhere in the world. Supporting is associated with risk. We try to investors against perceived country domestic exporters is important as mitigate both the perception of risk and risks. it increases their competitiveness by real risks. Additionally, our PRI cover protects allowing them to offer credit terms, There are some encouraging signs against non-payment by sub-sovereign which is the norm in international as risk is not dampening appetites or sovereign buyers. Sub-sovereigns markets. of foreign firms interested in doing are institutions where the government For overseas suppliers and lenders, business in Africa. Based on our is a majority shareholder, Parastatals or our insurance increases their capacity business, which is demand driven, government agencies. Our insurance to lend or give credit while at the there is a trend toward multinationals covers non-payment on transactions same time affording competitive terms setting up local affiliates. These where they are borrowers or buyers of to African borrowers or buyers. For

6 October 2016 Management Magazine Advertising Feature companies provide opportunities for to the continent in 2015 to USD128 insurance across Africa is typically local suppliers and contractors - for billion (KSh13 trillion), up by 136 per below three to four per cent, so you example, to supply raw materials and cent. At the same time, there was a dip can imagine the challenges our niche services to the business. We come into in investor confidence due largely to product brings. As a result, we have the picture by providing insurance to political instability and corruption. focused on educating stakeholders on all parties allowing them to do business This is the entry point for ATI and the the importance of these products to with each other by eliminating payment reason we were created. We are here companies and national economies. risks. to give comfort to anyone interested in We are also helping companies doing business in the African countries 9.What is the future of business to borrow at more affordable rates. we cover. With our strong rating, in Africa? Through our bank portfolio product, international network of partners and A surge in population, rapid we have formed important partnerships the trust we have engendered from urbanization, the adoption and with local banks that have resulted our stakeholders, we are able to give absorption of new technologies, as in helping them expand their lending prospective clients comfort that their well as the continued unlocking of volumes at more affordable rates. risks will not only be covered, but we abundant resources and the deepening can pay in the event of a claim. of the continent’s financial sector are 4.What support have you offered five prominent trends that are expected to boost trade and investments in 6.Most African economies continue to propel Africa’s on-going economic Africa? How about the rating and to record growth and improvement. growth and drive innovations in membership? Is trade and investment risk in business. Since inception, ATI has supported Africa at worrying levels like The continent has become the second Africa with USD 21.5 billion (KSh2.2 before? Are you satisfied with ATI’s most attractive investment destination trillion) worth of trade and investments efforts towards mitigating the in the world – ranking just behind North in our member countries. This figure problem so far? America — as investors are looking is significant because if you look at the High risk in Africa is more of a beyond the more established market of entire continent, trade flows and Foreign perception than the reality. Over the South Africa. Direct Investments are relatively small years, we have built up a strong network compared to the rest of the world. Our of international financial sector partners. 10.Where do you see this historical roots are in East and Southern These relationships are based on trust, organization 5 years to come? Africa but through partnerships our strong financial position and our Membership growth is a key focus for with the African Development and knowledge of the region. This trust has us. We hope to see movement on three the Economic Community Of West helped international clients become countries (Côte d’Ivoire, Ethiopia and African States, we are working more comfortable with African risk to a Zimbabwe) in the short term. We are also towards becoming a truly Pan African point where they trust our assessment of keen to increase our footprint in West organisation. We are currently rated ‘A’ any given project because we assess risk Africa. Stable by Standard & Poors. from a balanced perspective. We are working on increasing product knowledge within the region and 5.Statistics show that Africa’s 7.Are there any new activities that appreciation of what the products can Foreign Direct Investment and ATI has planned? do to help improve the bottom line of exports continue to grow steadily. Our business is demand-driven. companies, investors and even countries. Does ATI have a role to play in this Currently we are seeing greater Our products are known internationally regard? demand from our member countries for but we want them to be understood and In its annual report, global firm EY increased investments and support in used domestically to the benefit of our showed a surge in capital investments the energy sector. With the assistance countries. of partners such as Germany’s KfW, we We have ongoing initiatives to find are in the process of creating innovative energy sector insurance solutions, not Africa has become the solutions that will help ensure the just on a project level, but on a program second most attractive success of more energy sector projects, level. This means we have solutions investment destination in particularly small to medium sized that can be rolled out for a portfolio of the world – ranking just projects both in the region and across projects in a country, a region or across Africa. the entire continent. Going forward, behind North America — as this approach could also be applied to investors are looking beyond 8.Any challenges you have faced in other developmental structures (such the more established market discharging your mandate. as public-private partnerships) and for of South Africa,” GEORGE Our business is relatively new in Africa. other sectors. The rate of penetration for general OTIENO. Email: [email protected]

October 2016 7 Management Magazine News Youth unemployment to rise for the first time in 3 years - ILO

ith global youth unemployment expected Wto rise in 2016 for the first time in three years and the equally disturbing high levels of young people who work but still live in poverty, the United Nations labour agency has called for greater efforts to achieve sustainable economic growth and decent work. Releasing its World Employment and Social Outlook 2016: Trends for Youth, the International Labour Organization (ILO) estimated that the global youth unemployment rate is expected to reach 13.1 per cent in 2016 and remain at that level through to 2017 (up from The number of unemployed youth is set to rise by half a million in 2016 to reach 71 12.9 per cent in 2015). As a result, the million. PHOTO: COURTESY number of unemployed youth is set to rise by half a million in 2016 to reach growth in some developed countries,” and Agriculture said the report shows 71 million – the first such increase in said ILO Senior Economist and lead the steady and impressive impact that three years. author of the report Steven Tobin. CAADP has had over the last decade The report also finds that globally, and how countries are benefitting from Extreme or moderate poverty the share of young people between 15 it. Of greater concern, says ILO, is the and 29 years old who are willing to share and number of young people, move permanently to another coun- Agriculture and sustainable often in emerging and developing try stood at 20 per cent in 2015. The growth countries, who live in extreme or highest inclination to move abroad, at According to Agnes Kalibata, AGRA moderate poverty despite having a job. 38 per cent, is found in sub-Saharan President, the last ten years have made In fact, 156 million or 37.7 per cent of Africa and Latin America and the a strong case for agriculture as the sur- working youth are in extreme or mod- Caribbean, followed closely by Eastern est path to producing sustainable eco- erate poverty (compared to 26 per cent Europe at 37 per cent. nomic growth that is felt in all sectors of working adults). of society—and particularly among “The alarming rise in youth unem- Programme enables higher agri- poor Africans “Many governments face ployment and the equally disturbing cultural productivity and GDP significant budget constraints and far high levels of young people who work Countries that have implemented the too many farming families continue to but still live in poverty show how dif- Comprehensive Africa Agriculture lack basic inputs, like improved seeds ficult it will be to reach the global goal Development Programme (CAADP) or fertilizers. But the evidence is clear. to end poverty by 2030,” said Deborah have posted higher agriculture pro- When we invest in our farmers and in Greenfield, ILO Deputy Director- ductivity and stronger GDP growth as the all the things they need to suc- General for Policy in a press release on well as sharper declines in malnutri- ceed, good things happen across the report. tion compared to countries that have economy.” The ILO goes on to point out that not adopted it. This is contained in According to AGRA, the report finds Global economic growth in 2016 is the Alliance for a Green Revolution in that “after decades of stagnation, much estimated to stand at 3.2 per cent, 0.4 Africa (AGRA)’s 2016 African Agri- of Africa has enjoyed sustained agri- percentage points lower than the figure culture Status Report (AASR) that was culture productivity growth since 2005, predicted in late 2015. “This is driven released in September 2016 during the and as a result, poverty rates have by a deeper than expected recession Africa Green Revolution (AGR) Forum declined in places like Ghana, Rwanda, in some key emerging commodity- that was held in Nairobi. Ethiopia and Burkina Faso. exporting countries and stagnating H.E. Tumusiime Rhoda Peace, AUC Source: ILO Commissioner for Rural Economy

8 October 2016 Management Magazine October 2016 9 Management Magazine Feed Back

GREAT QUOTES Alcoholics need employer’s help

“Marketing is no longer about the stuff depression. Lack of self-control that you make, but about the stories you is a terrible thing, especially in tell.” - Seth Godin, author, entrepreneur, relation to alcohol use. It can be marketer, and public speaker. fatal. Unity Point Health, an “Money coming in says I’ve made American organisation notes the right marketing decisions.” Adam that alcohol dependency Osborne, author, book and software can dramatically affect an publisher, and computer designer. employee’s ability to contribute to the company’s success. An recently came across a copy of addiction can lead to a drop in “Never forget that you only have one the MANAGEMENT Magazine, productivity, reduced product opportunity to make a first impression ISeptember 2016 issue. As a quality, increased absenteeism, - with investors, with customers, with Human Resource professional, I and higher health care costs. PR, and with marketing.” Natalie was attracted to the article whose Although many alcoholics may Massenet, fashion entrepreneur and title was Humane vs right – a tough not admit it, they are in need of former journalist. balance. The writer shares the help. Employers should ensure experience of his alcohol-addicted that alcoholics are helped to “Don’t be afraid to get creative and colleague. In the course of my career overcome the vice. This is not experiment with your marketing.” - life, I have on several occasions only good for the company, but Mike Volpe, Entrepreneurial/startup encountered such situations. I have also for the employee’s family executive. seen highly skilled and experienced too. people lose their jobs, or cause fatal “Good marketing makes the company road accidents and later sink into look smart. Great marketing makes the Dr. Sharon Njoki, via email. customer feel smart.” – Joe Chernov, marketing leader, B2B marketing blogger. Plan wisely before you invest

“Make your marketing so useful people would pay you for it.” – Jay Baer, marketing consultant, speaker, and author.

“People don’t buy what you do, they buy why you do it.” – Simon Sinek, author, speaker, and consultant.

“Speak to your audience in their language about what’s in their heart.” – Jonathan Lister, marketing professional.

he article Why you need a in something they don’t fully plan before investing your understand. Although business Tcash that was published planning may be a cumbersome @ Management_KIM in MANAGEMENT Magazine, process, it is a very important step September 2016 issue was very and will help you avoid pitfalls in Management Magazine thought provoking. The writer, the future. Business author, Paul Kevin Mabonga was right in Meyer says productivity is never an www.management-africa.co.ke observing that “failure to prepare accident. It is always the result of a and plan well before you invest commitment to excellence, intelligent may affect a business in one way planning, and focused effort. or another.” It is true that such an action may lead one to invest Ezekiel Kima, via email.

10 October 2016 Management Magazine October 2016 11 Management Magazine Top Events

The 4th KIM Women in Leadership Conference DATE:: 28th–30th September 2016 VENUE:The PrideInn Paradise Beach Hotel, Mombasa PHOTOS: Sammi Nderitu

The fabulous ladies.

(L-R) Sally Mahihu, Founder, Seasoned Woman, Dr. Jaine Mwai, Lead Consultant, Reach Group Ltd., Banu Khan, Programme Analyst, UN Women, Daisy Amdany, Executive Director, Sheila M’Mbijjewe, Deputy Governor Central Bank of CRAWN Trust, Justice Njoki Ndungu, Supreme Court of Kenya, and Jane Ikunyua, Central Kenya (CBK). Bank of Kenya.

(L-R) Dorah Muyoyo, Ann Kiruti, Emily Naeku, Rosemary Lempaka, Catherine Lore, Miriam Mireri, all from Narok Teachers Karin Fueg, Deputy Director, Eric Kimani, CEO, Palm House. UN Women. Training College.

(L-R) Sheila Aduvagha, (KIM) Margaret Muhuro, (KIM), Patricia Nyaundi, CEO, Kathleen Kihanya, MD Sandales Beatrice Karugo, (KIM) Mohammed Hersi, CEO, Heritage Hotels Kenya National Commission on International and Maryam Shikanda Limited, Diana Gatumwa, (KIM) and Mukami Chege, (KIM). Human Rights (KNCHR). of Mabati Rolling Mills.

12 October 2016 Management Magazine 97 of the world’s 100 global leading brands employ ICAEW Chartered Accountants. They are recognised globally as leaders in accountancy, finance and business.

ICAEW’s main qualification, the ACA, is one of the most advanced learning and professional development programmes available. Find out why Catherine chose the ACA, and how it has helped her career.

I joined British American Tobacco – a multinational Throughout my training, I took on stretch FMCG company with presence in over 180 responsibilities at work to grow professionally countries – as a Finance Assistant. Appreciating the and meet training requirements. need for an international qualification, I enrolled for the ACA. The ACA was a clear front runner because The ACA is very demanding but equally rewarding, of its recognition and structured training which therefore a worthwhile investment. combines technical rigour, commercial acumen and Being an ICAEW Chartered Accountant marks a ethical considerations. key career milestone. I look forward to further With the route to chartered accountancy for consolidating my skills whilst enjoying the benefits ICPAK members established and BAT Kenya being of ICAEW membership. authorised as one of the first training employers, I was in the right place at the right time. CPA Catherine Cheburet Chepkong’a ICAEW Chartered Accountant Assistant Corporate Finance Manager British American Tobacco Kenya Plc

Start your path to global recognition in accountancy, finance and business. ICAEW works in partnership with the Institute of Certified Public Accountants of Kenya to offer a fast-track route to membership for CPAs. CPAs are required to complete the final three Advanced Level ACA exams, practical work experience, ethics training and professional development. All exams and training are available in Kenya. For further details visit icaew.com/icpak October 2016 13 Management Magazine News Analysis

I n the interest of the borrower While capping of the interest rates will see banks lower their lending rates, it could lead to credit rationing and unavailability of credit to majority of Kenyans.

By NJERI MARASI

he banking industry in Kenya has credit to majority of Kenyans which been on the spot for several years would adversely affect the economy. Tover high interest rates. Several It could also give rise to predatory efforts by parliament to regulate interest lending institutions which will seek to rates have been unsuccessful. However, fill the lending gaps left by banks. in 2016, the bill has seen the light of While signing the law, the president day after the president signed the law argued that he sympathised with that allows capping of interest rates. Kenyans suffering due to high interest Capping of interest rates is a policy rates while signing the law. These in- that is becoming rare as more and terest rates have enriched banks even more countries liberalize their financial as millions suffer under the burden of policies. While capping of the interest repayment. rates will see banks lower their lending While Kenya ranks 28 in ease of rates, it could be detrimental to the very getting credit, it ranks number 115 course it tries to achieve. It could lead in protecting minority investors and to credit rationing and unavailability of 108 in ease of doing business among

14 October 2016 Management Magazine News Analysis

Banks have a role in are out of business. Free markets, decisions. To apply ethics in financial institutions, banks must treat money as ensuring that they allow therefore, need no government interventions for regulation. Free markets a means not an end. Money in itself is the free market forces, which are regulated by the ‘invisible hand’ a unique commodity which has power are demand and supply, to where individuals are led by their to impact the world. It can negatively affect people when used with simplic- regulate them. In the free self-interests to unintentionally benefit the greater society. These benefits ity as a commodity to be traded. In market, interest rates rise are greater than those achieved by a upholding their ethical responsibility, and fall with the market regulated economy. In the presence banks should lower interest rates as market conditions improve. The mar- conditions.” of regulation, free markets become inefficient. Since Kenya operates ket conditions have improved since from a free market policy, why do the July 2015 going by the adjustments made by the Central Bank Rate (CBR) 189 countries, according to the World interest rates seem to go upwards and from 11.5 to 10 per cent and the Kenya Bank’s Doing Survey 2016. The cost of never downwards? Bank Reference rates (KBRR) from 9.87 credit in Kenya has continually risen Banks have a role in ensuring that to 8.9 per cent. over the years constraining business. they allow the free market forces, The bank interest rates have how- Kenyan banks interest rates for the which are demand and supply, to ever during the same period increased past 20 years have averaged 11.4 per regulate them. In the free market, from an average of 15.8 to 18.2 percent. cent against the world’s average of 6.6 interest rates rise and fall with the Secondly, banks should be transparent per cent. market conditions. However, in Ke- in how they price their loans. The CBK Kenya Commercial Bank and Equity nya the interest rates have been rising introduced the Kenya Bank’s Reference Bank made to the list of the Top 1,000 quickly with market conditions but rates in 2014 to be used when pricing World Banks ranking in 2014. The two falling slowly when the conditions loans but it was unsuccessful as banks banks made returns on capital at least are favourable. could not disclose their pricing models. four times the world’s average. This is Other than the demand and supply forces, the bank interest rates are also despite the outcry by Kenyans on the Pricing model high loan interest rates. This exploita- influenced by the market structure, It is possible to find a balance in the tion has been witnessed not only in credit risk, Central Bank regulation, financial sector where banks make Kenya but in strong economies such as information flow and distribution decent profits while benefiting the the US and UK. For example, traders of market power. These factors have greater society. The CBK has been from 20 banks in US and UK colluded continually improved in favour of working on reforms that will reduce and manipulated the London Inter- lower interest rates in recent years. interest rates sustainably. For example, bank Offered Rate [LIBOR] for their For example, the Credit Reference it is working to introduce an Annual own good at the expense of millions Bureau now provides banks with Percentage Rate [APR] pricing model of people, leading to the 2008 financial credit information of their borrow- which will allow consumers to com- crisis. ers reducing the credit risk as well as facilitating information flow. pare the different bank loan rates on Free markets The market structure has been standardized parameters that reflect the actual cost of borrowing. It is also Markets often suffer from what stable at a Gross Domestic Product strengthening the Credit Reference George Akerlof termed as lemon’s (GDP) of five per cent without shocks Bureau to help banks access informa- market where due to information that affect interest rates and inflation. tion on borrowers. asymmetry, consumers are unable to However, these positive factors have The CBK is also enhancing the trans- distinguish poor from good quality not been reflected in the banking parency to allow fair pricing of bank products. However, even in the face lending rates. This raises the question products. These reforms and capping of such situations, free markets still of ethics among banks in ensuring of the interest rates heavily depend adjust themselves. that they do business in a manner on the banking industry’s willingness According to a story told by Dan that benefits their clients. In Kenya, to implement them. They will require Klein, good businesses exist to regu- six banks out of 42 control 52.4 per banks to uphold ethics in their way of late the bad ones. In his story, Klein cent of the banking industry which conducting business so that interest suggests that if a car broke down away undermines consumers’ bargaining rates remain sustainable. Upholding from home, one would be wary to run power. The market power is therefore ethics is also important in restoring to the nearby ‘Joe’s Auto Repair’ but skewed to the disadvantage of the mwananchi. confidence among consumers and would be more comfortable with a common investors which is important for the popular and strongly branded auto re- Ethical banking whole economy. pair shop. Therefore, the trusted large Email: [email protected] businesses prompt the small business Ethical banking embraces both envi- to provide quality services or else they ronmentally and socially conscious

October 2016 15 Management Magazine Cover Story

Mr John Njiraini, Commissioner General, Kenya Revenue Authority. Photo: Courtesy.

16 October 2016 Management Magazine Cover Story Driving change through communication Mr John Njiraini, Commissioner General KRA has capitalized on one critical success factor in leadership to drive change – communication with clarity.

By TABITHA AREBA

he Kenya Revenue Authority (KRA) has been on a Tcontinuous transformation mode since 2012 when John Njiraini, the Commissioner General, was appointed to head the tax collection agency. The change journey started with a fairly radical organisational reform that cut through the chain of command and reduced the span of control not only in the Commissioner Gen- eral’s (CGs) office but also in other areas. Before 2012, KRA had a long organizational structure. “In a bid to improve efficiency and cut bureaucracy, we reduced ranks to 10, and the number of people reporting to me to 9.” All these efforts were meant to help KRA focus on the organization’s core business, which is tax collection. with clarity. An article published in my team. `How to do something’ is “We consolidated all administrative the September 2016 issue of Harvard more important than ‘we need to get it processes under one docket. Today, Business Review confirms this. “The done’,” he says. administration, human resource, ICT best CEOs focus primarily on four To maximize results, KRA introduced and security report to one person,” things: communication, communica- performance-based employment that says the CG. tion, communication, and overseeing culminated in having the top four resource allocation to ensure that the grades engaged in contracts. At the Communication with clarity priorities they’re communicating are Authority, the CG notes, performance Mr. Njiraini, who has a professional actually the ones getting funded,” the and delivery is very highly monitored background in teaching and account- article reads in part. and self-drive is key for success. ing, initially had a perception that Mr. Njiraini believes that people are “I think we are the only public people who work in government are not innately opposed to things, but organization that has implemented rigid and opposed to change. But this they cannot buy into things they don’t performance-based employment to that was not the case at KRA. understand. extent. “I joined KRA as a Commissioner “When I am working with people, One of the key areas that KRA is in charge of Large Taxpayer Office I get to the level where I become currently focusing on is an ambitious (LTO) and we did a lot with the same very clear about how we want to do culture change management geared people, it is not like I came with something and with this, most people towards changing the service culture of people from outside,” he remembers. buy into ideas. Communication with its staff. The CG has capitalized on one clarity and being able to think with “We need to move away from the critical success factor in leadership people is an issue I emphasize a lot way we are traditionally seen as to drive change – communication when I am having engagements with enforcement focused institution that is

October 2016 17 Management Magazine Cover Story

In a bid to improve elaborates.The authority is also in the Through customs, KRA also plays efficiency and cut middle of implementing a major enter- a key role in border control, ensuring prise resource planning solution. KRA that goods coming through Kenya’s bureaucracy, we expects to achieve paperless operations borders, airports and ports are prop- reduced ranks to 10, and the in the next 18 to 24 months. “We will erly screened. Since 2013, the institu- number of people reporting no longer have to deal with papers tion has consciously restructured even in areas like audit, receiving of customs to focus on border control. to me to 9.” All these efforts returns or processing of returns.” “We have set up a fully-fledged were meant to help KRA Besides, KRA has undertaken one of division to deal with border control focus on the organization’s the most comprehensive legal reforms and recruited professionals to manage in the last five years in as far as tax is this division. We continue investing in core business, which is tax concerned, probably more than has people, resources and tools that will collection”. happened since 1995 when the tax help us operate and enforce border collection agency was set up. Some of control. For example, the head of bor- these reforms include: The enactment der control was recruited from Kenya hostile to its customers, to a friendly, of VAT Act, 2013, the Excise Duty Act, Defense Forces,” he says. focused and appreciative institution.” 2015 and the Tax Procedures Act, 2015 KRA has become a key player in This is one of the key highlights in which harmonizes and consolidates Government’s overall programme for KRA’s 6th Corporate Plan that was procedural rules for the administration the enforcement of border security. launched in 2015 with a theme ‘ build- of tax laws in Kenya. The authority is playing an emerging ing trust through facilitation.’ “We have reformed all the key laws, role, where tax is seen as one of the Communication with clarity except the Income Tax Act. We have tools that should be incorporated in coupled with courage of conviction been key in driving this and of course law enforcement. has enabled Mr. Njiraini to transform the Treasury leads. We are largely “In many cases, where there are KRA to the level of surpassing the KSh the people who originate and cham- criminal activities, there are also tax 1 trillion exchequer revenue collec- pion these changes because of what issues involved. For instance illegal tion mark and the registration of its they mean for our Country,” says Mr. activities such as money laundering, 4.4 millionth iTax client. Tax revenue Njiraini. corruption or smuggling, involve the to GDP ratio has improved from an movement of money and the inten- average of 18 per cent recorded in the Economic development tion is to evade tax or legitimize ill period 2010/11 - 2012/13 to 18.8 per As the lead revenue collector, KRA acquired capital. Other government cent achieved in the period 2013/14 plays a central role in Kenya’s econom- agencies take action on the criminal - 2015/16. The target for 2016/17 is ic development. The authority collects aspects, but we have been tasked to 19.5 per cent. Tax collection efficiency, revenue which in turn drives most look at the tax aspect,” Mr. Njiraini which is measured by the cost of rev- activities in Kenya’s economy. Mr. Nji- explains. enue collection, has steadily improved. raini says that the revenue contribution Therefore, KRA works as part of The cost of revenue collection declined from KRA stands at 97 per cent. Ad- government’s multi-agency frame- from 1.68 per cent in 2011/12 to 1.21 ditionally, KRA plays a significant role work where various law enforcement per cent in 2015/16. in the facilitation of trade, as payment institutions come together under one Innovation and technology of taxes is one of the indicators used to umbrella to look into the law enforce- assess ease of doing business in Kenya. ment question. Innovation and technology in admin- “Therefore, the way in which we col- istration of both domestic and customs lect tax impacts on the country’s attrac- Devolution and tax collection taxes has had the most impact in grow- tiveness to investments.” All reform Tax collection is a complex process ing the tax base and enhancing compli- processes that KRA has undertaken are that requires structures, expertise and ance. Mr. Njiraini describes KRA as the geared towards ensuring tax collection systems. Part I of Chapter 12 of the one single government institution that is efficient, pleasant, easy and conve- Constitution lays out the principles has implemented electronic commerce nient both at the domestic and customs and framework of public finance. for business and has a model that level. Article 209(1) of the Constitution many government institutions consult The authority is currently involved provides, in this regard, that only the on issues technology. in the development of a new Customs national government may impose “Most of our processes are now Management System that will be rolled income tax, value added tax, custom electronic – you can register as a tax out from early 2017. The primary duties (and other duties on import payer, file returns, apply for services purpose of that investment is to further and export goods) and excise tax. Rev- and get feedback online. We are cur- make it easier for people to engage in enue generated from these categories rently engaging in automating our international trade, both import and of taxes accrues only to the national administrative processes,” Mr. Njiraini export. government and as such, belong to

18 October 2016 Management Magazine Cover Story the whole country. However, there are certain taxes that are collected by counties – land rates, single business permits, business licenses and levies relating to entertainment. Due to complexities of tax collection, KRA is pursuing partnerships with County Governments to offer its expertise and support in creating effective revenue collection mechanisms. “This will be a mutual partnership. We have the technology, expertise and databases that can be used to mine information on who should be paying for licenses or land rates. They may also have information that we may not have. They have grassroots presence and may When the going gets have a better feel on how things are on the ground,” says Mr. Njiraini. tough, hang on in there

More revenue 1. Leadership, especially in the same way in the private sector, Mr. Njiraini says that KRA’s strategy positions like the one you hold but in public service, it is equally if for collection of more revenue is not in in the public service have many not more important because there the introduction of new taxes, but in challenges. When the going gets are many challenges. There are many ensuring that those who should pay, tough, have you ever felt like roads you travel riddled with threats, pay. “The current scenario is that not quitting? and you must have the courage to en- everybody who is doing business is in dure it all. If you lead people, and you the tax net,” says the Commissioner There are professional challenges don’t lead people with courage, then General. relating, for example, to making sure I don’t think you can go far, because The introduction of tools like with- that we hit the target, and deliver people will get scared when they see holding of VAT was meant to support on service expectations, but there that you are scared. Leadership re- the process of understanding who does are other issues that we have to quires courage of conviction, you need business with the government, coun- deal with. When you look at life, it is to believe in the course, and be able to ties and large companies. difficult to consider quitting because defend the course. “Now we are capturing that informa- of challenges. The question I always tion and using it to know businesses ask my self is, “then, what? What do 3. What do you do to ensure you that are not in our database. Through you then go and do after you quit?” keep growing and developing as a this, we even get information regard- It is a self-defeating activity, and I leader? ing how much income they earn in think for me when I see challenges, Leaders should always seek to their business activities,” Mr. Njiraini I see opportunities because by the address areas where there are chal- reveals. time you are through dealing with lenges. At KRA, we started what we Expansion of the tax base is criti- a challenge, you come out a better call a high performance initiative to cal, and KRA has lined up strategies person. You will be stronger and you build and unleash the potential that to achieve this goal. “Besides the will have improved yourself. I have we have as a team. It is quite interac- withholding tax, we are identifying never for one moment sat down tive, we engage a lot through regular databases, like the mobile phone data- and said that I feel like quitting. I sessions where we talk candidly with base, the lands database and the stock think it is important mentally for one each other about our problems. I think market database to help us bring more to get those kinds of thoughts out it is a very positive thing. For example, people who have income to the tax of their mind. It is easy to quit, but I have been told that I am not always net,” says the Commissioner General. probably much harder to live with very friendly, I push too hard, I can be “That is why innovation for us is that decision. too critical. But I always tell my people very critical. One of the areas we are that even when I push hard, it is never looking at is how to tax internet based 2. What are the critical suc- personal. I am always frank with my commerce, including new businesses cess factors for leaders espe- team, I don’t like hypocrisy. such as electronic payment of trans- cially in the public service? port, and mobile money transfer,” Mr. Success in the public service Email: [email protected] Njiraini concludes. requires courage. I presume it works

October 2016 19 Management Magazine Advertisibg Feature How the design of a building can affect work performance Do you know that the environment you live in can contribute significantly towards stress?

daylight systems and indirect lighting systems not only reduce electrical energy consumption but also create a more pleasant office environment by providing glare free and natural lighting. Break out areas for staff should also be designed with more space and a variety of seating options. Being social areas, they should be designed with more colour and vitality. By EDWARD MUGO deviant behaviour. We always realise Unfortunately, houses lack enough when schools close how unfriendly space are increasing at an alarming o you know that the our environment is and this is why degree. This is witnessed throughout environment you live in there has been a proliferation of the various social classes, from: the Dcan contribute significantly holiday camps in, sports, religion, congested flats in Eastlands , Githu- towards stress? Stress is one of life’s mentoring and cooking. rai, Rongai, Kilimani , Westands , phenomenon which does not come Great teachers, stable families and a and Kileleshwa, all with minimal with a sign or a shout; it creeps in school’s location have long been said urban open space to play and relax. slowly over time. to be key to student success. New On paper, all these estates have part Some of the environmental charac- studies suggest that a school’s physi- development plans that contain open teristics with direct effect on mental cal design can improve or worsen play areas. These strategic spaces health include housing, crowding, children’s academic performance by have either been grabbed and user noise, indoor air quality, and light. as much as 25 per cent in early years. changed or overgrown with weeds, These factors amongst other socio Sitting on a desk the whole day can grass, garbage, or even converted to economic variables combine to affect literally kill you. The World Health local garages or kiosks. The prob- us in a number of ways in various Organisation (WHO) now lists inac- lem is in the policing of policy. Who settings. tivity as the fourth-biggest killer of ensures that developers provided A 2012 study by a UK based design adults, but what does our architecture sufficient play area in urban develop- firm IBI Nightingale conducted jointly and space planning do to us? Does it ments? with the University of Salford found heal or exacerbate the problem? Can we think of partnering with that the confluence of classroom companies that can develop com- Stress-inducing factorv m design features, such as room orienta- mercial facilities, say members club, tion, acoustics, and furniture, can en- An office work that has natural light, sports club on say 25 per cent of the hance or set back a student’s academic proper aeration and temperature, land and that can commit to maintain progress by up to 25 per cent during good facilities, colour and greenery the remaining 75 per cent of the open the course of a year. can boost productivity. Poor office area for the community on a BOT Although there is near consensus lighting is a stress-inducing factor. (Build, Operate and Transfer) model? on the relationship between housing Choosing the ‘right’ light is It is time we worked to create a quality and psychological distress, extremely important when consider- different, friendlier and healthier planners and property stakeholders ing an individual’s well-being. For architectural space for the benefit of have failed to address this problem in example, when we are exposed to ar- our well-being. a holistic manner. eas which are either too harsh or too dimly lit,creativity is suppressed and In many parts of Nairobi, it may be we could be prone to headaches and already too late to change this very Edward Mugo is an architect and is the confusion. Different lighting require- stressful urban fabric. This has forced CEO of EDG and Atelier, an architec- ments are appropriate for different many urban dwellers to reduce stress tural firm based in Nairobi. work activities, job functions and by over drinking, getting hooked on individual requirements. Both natural drugs, domestic violence and other Email: [email protected]

20 October 2016 Management Magazine Enabling Futures, Impacting Progress.

CONNECT WITH US Management University of Africa @Management Uni October 2016 21 Management Magazine S pecial Report The unexploited frontier of Kenya’s rich sports heritage

Kenya has not fully exploited its potential in sports marketing. There is enormous opportunity for brands to market themselves through sporting activities.

Ronald Karauri, Sportspesa CEO (second left) and Jack Oguda, Kenya Premier League CEO. Kenyan firms are slowly warming up to sports sponsorship. Photo: Courtesy.

By COSMAS MOTANGI

arambee Stars, Kenya’s -were threatening to sue the brewer Prof. Hoye says it has two key fea- national football team, was for using their images on a billboard tures. First, the application of general Hpreparing to face Togo’s without their consent. marketing practices to sport-related national football team, Les Eperviers The company, however, disputed products and services, and secondly, (The Sparrow Hawks), in the Orange their account saying it had a contract the marketing of other consumer Africa Cup of Nations qualifier in with the national team containing and industrial products or services Nairobi in early 2012. clauses that allowed it, as a sponsor, through sports. The spirit was high among the to use images of the team’s players in “Like any form of marketing, sport Harambee Stars players who were promotions. The matter was, however, marketing seeks to fulfil the needs assured of their bonuses and other in- later amicably resolved. and wants of consumers. It achieves centives following the team’s signing this by providing sport services and of a three-year KSh 10 million sponsor- Sports marketing sport-related products to consumers,” ship deal with East African Breweries Welcome to the world of sports he says. Limited (EABL). marketing, which Dr. Russell Hoye, It is not surprising sports personali- Yet, all was not well between the an associate professor in the School ties, including Kenyans, have been Stars and EABL, the team’s sponsor of Sport, Tourism and Hospitality bagging lucrative sponsorship deals and the country’s largest brewer. This Management, La Trobe University, with different companies. is because three key players – then Victoria, Australia, says is the applica- Prof. Bitange Ndemo, an associate France-based striker Dennis Oliech, tion of marketing concepts to sports professor at the University of Nairo- his then Italy-based counterpart, products and services, and the mar- bi’s School of Business, says that from MacDonald Mariga, and Kenya keting of non-sport products through the advertising point of view, there Premier League striker Bob Mugalia an association to sport. is no better way of marketing sports

22 October 2016 Management Magazine S pecial Report products other than leveraging on the USD35 billion (KSh 3.5 trillion) in image of the athletes who are some- 2010 to USD45.3 billion (KSh 4.53 times icons across the world. trillion) in 2015, a 5.3 per cent com- “They (major brands) could not be pound annual increase,” it notes. investing in sports marketing if there is no money to be made. This is simply Enormous opportunities big business that we have not under- Industry watchers, however, note stood locally,” says Prof. Ndemo. that Kenya has not fully exploited its full potential in sports marketing. Brand ambassadors Dr Iraki attributes this to a presence Mission Statement It is a view shared by Dr. X.N. Iraki, of very few big brands to effectively a senior lecturer, University of Nai- compete to sponsor the athletes and ‘To be the voice of robi, who says major brands sponsor other sports personalities. “We have prominent sports personalities because also do not understand the potential Information Technology it is very profitable. “They use sports- (of sports marketing). To exploit this influencing policy, direction men and women because they are well potential, we must invest in sports- and development in the known, hence attract customers. Think men who can make global marks in of how many golf enthusiasts would the league of golf great Tiger Woods industry.’ want to be associated with any product and ride on them,” says Dr. Iraki. being marketed by Tiger Woods or in Prof. Ndemo concurs that there is Vision Statement tennis by the Serena sisters,” he says. an enormous opportunity for Kenya ‘To be the driver of ICT This holds true in Kenya where, for to market herself through her sports- instance, Paul Tergat, Kenya’s former men and women. “We have not, growth and excellence in world marathon record holder, stared however, fully exploited that because Africa.’ in the Johnnie Walker whisky’s global we always look to the government Walk With Giants campaign. for any form of funding. We need to Also, former Olympic and world change that and start using corpo- 3000m Steeplechase champion, Ezekiel rates to sponsor our sports activities OUR SERVICES Kemboi, has been the Tusker ambas- and personalities.” sador while the world champion, the The former permanent secretary Peering African and Commonwealth record in the Ministry of Information and javelin holder, Julius Yego, is the Tel- Communication, adds that Kenyan Networking kom Orange internet ambassador. firms like East Africa’s most profit- According to the second edition of able company mobile phone service Research PwC outlook for the global sports mar- provider, Safaricom, and banks like ket, while the commercial dynamics of KCB and Equity should be the of- Training sport and entertainment have always ficial sponsors of the Kenyan team overlapped, the two are now closer to Olympics. “This would lessen than ever before. corruption as we can attest from the Policy & Advocacy “In many cases, sporting entertain- last Olympics.” ment and commercial success are now Indeed, Kenyan firms are slowly seen as two sides of the same coin,” warming up to sports sponsorship says the PWC report titled Changing the with betting firm, SportPesa, spon- game: Outlook for the global sports market soring the English Premier League to 2015. (EPL) football club, Hull City, and ADDRESS: The report’s findings show that Kenya Premier League (KPL) foot- Telecommunication Service Providers sports’ marketing is now big business. ball clubs AFC Leopards and Gor “We project that global revenues from Mahia. of Kenya (TESPOK) sports sponsorships will increase from Safaricom is sponsoring a num- Bruce House, Standard Street, ber of athletics activities and rugby, Nairobi, Kenya. They (major brands) could Kenya Airways sponsoring the Ke- not be investing in sports nya’s Safari 7s team while EABL has +254 20 2245036 marketing if there is no sponsored KPL club, Tusker, Mathare [email protected] money to be made. This is United is sponsored by Britam and Thika United by Brookside Dairy. www.tespok.co.ke simply big business that we Join the Conversation: have not understood locally,” Email: [email protected] :TESPOK_KENYA @tespok_kenya @kixp_support October 2016 23 Management Magazine

TESPOK ADVERTS.indd 2 4/8/16 2:15 PM Special Report Ambush marketing in sports

Major sporting events have global audiences and it comes as no surprise when a company with no affiliation to the games rides on the euphoria that is brought about by these games

By IAN WAWERU

“OFFICIAL SPONSOR OF THE the 2012 Olympics games had started. LARGEST ATHLETICS EVENT IN In effect, what this meant was that LONDON THIS YEAR (AHEM, LON- Paddy Power had laid and executed DON, FRANCE THAT IS).” the perfect ambush on the Olympics hese were the words plastered Games, keeping with the tradition of on a billboard by Paddy Power the Olympics games being the flagship Tin London about a month before event for ambush marketing in sports.

24 October 2016 Management Magazine S pecial Report

Ambush marketing in sports refers had effectively managed to link them- in making the event or tournament to the act of a non-sponsor trying to selves to the games without mention- a success can be very effective for relate their brand to a sporting event, ing the tournament and infringing on companies, especially in the B2B which they have not sponsored. The any intellectual property rights. sphere. For example, a logistics firm practice is now a codified marketing This was not the first time Beats by can demonstrate how it worked round strategy for global sporting events, Dre had done this. Over the years, they the clock to achieve its deliverables on making it customary in nearly every have perfected the craft of stealing the time or an electronics equipment firm major sporting event around the globe. limelight from major sponsors and can show how efficient their products But why is ambush marketing so ubiq- there is no better example to illustrate are and what better platform to do this uitous? Simply put, major sporting how subtle ambush marketing can be than at an event that is being viewed events have global audiences of up to executed than by what they did during globally or locally by millions if not three billion viewers if the 2012 Lon- the 2012 Olympic Games. Whereas billions of people. don Olympic Games are anything to go Panasonic were the official audio and Sponsorship remains an essential by. Therefore, it comes as no surprise visual partner, Beats went about giving aspect of major sporting events such when a company with no affiliation their headphones free of charge to all as the Olympic and the world cup. It whatsoever to the games, tries to ride swimming contestants at the Olympics provides the perfect marketing oppor- on the euphoria that is brought about game creating an impression that they tunity for major companies to associ- by these games. were the main audio sponsors of the ate themselves with a sporting event Essentially, what a brand aims at event. At a cost of less than a hundred with the funds from these sponsor- achieving in an ambush campaign is thousand dollars, they had outsmarted ships providing revenue for organiz- creativity linked to legality. A clever the Olympics Organising committee ing these sporting events. At the same ambush campaign is one that attracts and Panasonic in a simply choreo- time, the value-in-kind sponsorships media attention while stealing the graphed stroke of genius. also provide an opportunity for spon- corporate limelight from the official sors to showcase the performance of Know your client, know your rival sponsor. What this does, is to create their products to a huge audience. a memorable and sales generating With such deliberate attempts at steal- With legitimate rights obtained from campaign that is based on the tenets ing the limelight, the official sponsors being an official sponsor one needs of law. There are very few companies need to come up with strategies that not to worry about the ensuing legal that have been able to successfully pull will enable them out manoeuvre their battles that can be attributed to am- such audacious marketing stunts and brand rivals both tactically and cre- bush marketing. walk scot free from legal battles from atively. The approach should be multi- Therefore, depending on a com- the event organisers. faceted with both an online and ‘on the pany’s principles and risk appetite, On June 7th 2016 with a few days to ground’ experience that leaves all but ambush marketing is always an go before the start of the Euros, Beats nothing for a rival brand to ride on. option. However, when it comes to Electronics, a division of Apple Inc, Sponsors need to involve sports development of a sport that is attrib- published an advert to promote its marketing agencies to advise them on utable to sponsorship, it is only the wireless headphones. To most sports how to deliver the desired experience official sponsors who will be recog- marketers, it was almost obvious what not only to the television audience nised. An official sponsor stands to was happening. ‘Beats by Dre’ were but the social media audience and the gain more than any ambush marketer at it again, this time with the Euros participants of the tournament as well. can and depending on the culture of 2016. Harry Kane, Antoine Griezmann, With the involvement of social media, the people who are being targeted, an Mario Gotze and Cesc Fabregas were the sponsors need to think like the ambush campaign can fail terribly and featured in a one minute advert with ambush marketers, countering all rival adversely affect the brand image. all of them passing a ball to each other sponsored campaigns and hash tags by Although locally some brands have in what looked like a tunnel. With creating their own and consequentially participated in ambush marketing of these individuals being primed to play gaining as much mileage as possible on the national rugby and athletics teams, very important roles for their countries these platforms. It is also very impor- they have not gone to extremes of during the tournament, Beats by Dre tant for official sponsors to have an linking themselves to the tournaments elaborate media-buying plan that aims even before they start. A practice we, A clever ambush at taking on the ambush marketers sports marketers, hope will continue head on leaving no chance for doubt even as the local sports industry grows campaign is one that on who the real sponsor is. in leaps and bounds. attracts media attention Educating the public is also an op- while stealing the corporate tion for official sponsors in getting limelight from the official support for their brands. A documen- Email: [email protected] tary on what vital role they played Ian is a Sports Marketing sponsor.” Consultant

October 2016 25 Management Magazine S pecial Report

By FRANCOIS VAN DYK

Measurement umans are competitive beings; very competitive. It His no wonder that sport has is key in sports long featured as part of the human endeavour. Early depictions of marketing sprinting and wrestling dating back more than 15,000 years have been found in the Lascaux caves in France and even archery, swimming and Companies that have clear objectives and measurements in other sports features in early rock art place can increase their returns by as much as 30 per cent. across the world. The Olympic Games, one of the biggest sporting events in the world, was first held in Greece in 776 BC and was celebrated for more than a 1,000 years until 393 AD. The competitive nature of the ancients were reborn with the birth of the first modern Sum- mer Olympics, held in Athens in 1896. The commercialization of sport also appeared in the mid 1800’s with the first admission fees being charged for spectators to baseball games in 1858. For many, sport has become a sub- stitute for war – but instead of tribal warriors meeting opponents on the battlefield, it is now a controlled environment where nations or teams can battle it out for superiority. Modern sport heroes have replaced the military heroes of ancient legends.

Endorsements With such status being afforded to great sportsmen, it is no wonder early brands and marketers wanted a piece of the action and one of the earliest endorsement deals were signed between Wilson Sporting Goods and American golfer Gene Sarazen in 1923. This also ended up being one of the longest running endorsement deals ever and only lapsed with Sarazen’s death in 1999. Coca-Cola started their partnership with the 1928 Amsterdam Olym- pic Games and this still continues today. An event such as the Olympics obviously exposes sport to a massive global audience, an ideal opportunity for brands and advertisers to create touchpoints with consumers. However, brands need to utilize the opportunity in a very clever way. According to the Brand Agility Index study released by global Public Rela- >>> Turn to Page 28 26 October 2016 Management Magazine October 2016 27 Management Magazine S pecial Report

>>> From Page 26 sage right as they hope to build brand Kia’s agency, We are Social, created tions firm, Waggener Edstrom Com- awareness and customer loyalty. How- several competitions with a unique munications, Samsung was the big ever, despite the Super Bowl hype, the hashtag #KiaOA. The campaign sponsorship winner at the Rio 2016 costs appear to seldom generate the proved very successful, evident from Olympics, scoring 103 points in the expected Return on Investment (ROI). the more than 90,000 active audience index with the brand being mentioned Communicus, the international adver- engagements on all social channels 20,635 times. Coca-Cola ranked second tising research firm, says that 80 per and more than 100,000 visits to Kia- with an index ranking of 94 points. cent of the Super Bowl advertisements owned competitions. does not boost sales. “The number Associating brands with sports or However the McDonald’s spon- one reason these commercials fail is individual athletes can have great sorship did not perform well, with that advertisers and agencies are too benefits but also pitfalls. No one can Waggener Edstrom blaming its focused on entertaining viewers more forget Paralympian Oscar Pistorius, “connection to unhealthy food.” than elevating the brand,” Jeri Smith, once a global hero who is now serv- McDonald’s scored 68 points, perform- CEO of Communicus, told Bloomberg ing time for the murder of his model ing worse than significantly smaller in 2016. girlfriend Reeva Steenkamp. Nike, sponsors. Oakley, British telecoms firm BT and Waggener Edstrom’s Gareth Davies Clear objectives Thierry Muggler all moved quickly believes Samsung’s success was due to According to US industry research, to disassociate themselves from the it being able to connect well with the between 30 – 50 per cent of US disgraced athlete. Speedo also quickly audience and driving deep engage- companies do not have proper ROI cancelled their sponsorship of US ment and good sentiment through its measurements for their sponsorships. swimmer Ryan Lochte, after he lied “School of Rio” videos. According to McKinsey, the global consulting firm, about being robbed at the Rio Olym- Davies, the poorer performing spon- believes that companies that have clear pics 2016. It is reported that Speedo sors, though celebrating the athletes’ objectives and measurements in place plans to donate a USD50,000 (KSh5 successes, failed to create a proper can increase their returns by as much million) portion of Lochte’s sponsor- brand narrative and message, which as 30 per cent. ship fee to Save the Children in Brazil. lead to limited engagement from their Kia, the Korean motor vehicle manu- Marketing is one of the most crucial audiences. facturer, has long been a sponsor of the functions a brand can have and align- Australian Open tennis championship. ing your brand with sporting heroes Expensive advertising With the 2013 event, Kia’s social media can have great benefits. However, the The power of the reach of sport is strategy was to engage tennis fans in a brand values need to fit the athlete’s particularly evident with the National fun and interactive way. Audience en- values and as with all other market- Football League’s Super Bowl, the gagement was to be a key metric and ing, advertising and communication annual championship game of profes- activities, it is crucial that there are sional American football. 2015’s Super very specific marketing objectives in Bowl XLIX broke records to become place. the most-watched American television Measuring the progress towards program in history with an average au- these objectives have long been the dience of 114.4 million viewers, mostly stepchild of marketing, many seeing Americans. it as too expensive, a nice-to-have or To reach this audience with a televi- some are just afraid of the real results. sion commercial is now the most ex- Measurement should be seen as a pensive advertising space in the world learning exercise and not a threat as it with brands forking out up to USD5 will identify strategies and tactics that million (KSh507 million) per 30 sec- work for the brand – and great learn- onds – that’s USD166,666.66 (KSh16.9 ings can be taken from campaigns million) per second! The Super Bowl which were not that successful, help- advertisements have become a cultural ing brands to avoid them in future. phenomenon on its own with a high level of creativity, cinematography and humour and some research now You can’t put a limit on Email: [email protected] indicates that many Super Bowl view- anything. The more you Francois van Dyk, @sbalie, heads ers only watch the game to see these dream, the farther you get.” up Operations at Ornico, the Pan- iconic ads. - Michael Phelps, Olympic- African Brand Intelligence research But with so much money at stake, it company. He studied and taught pub- is critical for brands to get the mes- medal winning swimmer. lic relations before entering the world of media research.

28 October 2016 Management Magazine October 2016 29 Management Magazine S pecial Report The state of sports sponsorship in Kenya A number of corporates have come on board to sponsor various sports associations, from football to rugby, athletics and boxing.

By DENNIS MABUKA

here has been tremendous it is almost impossible to run the team sorship of Bamburi Cement Com- growth in sports in Kenya without regular financing. Sources pany. The club, nicknamed ‘Batoto ba Tover the last decade, with a of financing are limited, considering Mungu’ under the leadership of its number of corporates coming on the fact that fans do not turn out in owner, Elly Kalekwa, had signed a board to sponsor various associations, numbers to support the clubs, meaning KSh30 million a year deal. The club from football to rugby, athletics and no revenue is generated from gate was stable on and off the pitch, go- boxing. Strategic corporate investors charges. ing for quality players, and always use sports variously as a medium of Kenyan Premier League clubs are challenged for top awards. The team marketing their products and services. doing fairly well on this front. All won one league title, the Federation of This has given some sports a major clubs, apart from Sofapaka, Nairobi Kenya Football (FKF) Cup twice and boost as success in managing a club City Stars and Muhoroni Youth, have finished as first runners-up twice. requires money. Managing a sports sponsors. When Sofapaka was pro- Tusker Football Club is one of a few team is very expensive. Any club moted to the top tier back in 2009, its clubs that have had continuous spon- owner will acknowledge the fact that performance was good under the sponsorship from the East Africa Breweries

30 October 2016 Management Magazine S pecial Report

Limited (EABL). The team has been out sanity, nothing can be achieved; it lenge other firms to follow suit.” consistent in all fronts, and is the third will be one struggle after another.” But players still feel they are not most successful club in the country Getting a sponsor is not easy. getting enough from the sponsorship. having won five CECAFA (The Coun- Mathare United struggled financially This feeling has been captured by cil for East and Central Africa Football for a long time before signing a five- Tusker defender James Situma, who Associations) trophies, ten league year sponsorship contract with Britam. notes that the plight of players re- titles, three FKF crowns among others. As Bob Munro, the director of Mathare mains the same even as sponsorships “It is a privilege that we have Youth Sports Association (MYSA) said increase. “It is sad that players, who EABL; it has helped us to be consistent during the launch of the sponsorship, are the main actors in Kenyan leagues, both on and off the pitch. We have no company will want to be associated continue to be paid peanuts even as managed to sign good players and run with clubs that are fishy. “It is a deal officials pocket huge sums of money our affairs seamlessly in addition to that we have been working on for sev- for attending meetings. This must not winning several titles because of the eral years. It is a milestone for our club be allowed to happen. A huge chunk financial stability that we have experi- and a sign of good things to come.” of the cash should go directly to the enced,” says Charles Obiny, Tusker’s And true to his words, the ‘slum boys’ players.” club director. are challenging the title for the first Situma adds, “I have mixed feelings Ronald Ngala, Gor Mahia Secre- time since 2008. about this sponsorship deals. We have tary General, believes that corporates Obiny feels that companies are seen that even with the last one, play- are seeing something good in local reluctant to invest in local sports due ers never benefitted much as some football, hence the reason they have to wrong use of resources. “We lack clubs were still not able to pay their decided to invest in it. “So far things professionalism and this scares away wages. Those who are paid continue are going well in the local league. It investors. Instead of money solving to have the same salary for two to means there is order and they want to problems, it creates more problems. three years.” be associated with good things. With- Unless that is achieved, other clubs Situma, who compared Tanzania to will continue to suffer.” Kenya, regretted that while the latter’s We have managed to Rugby has received a lot of financial economy is smaller, clubs in that coun- sign good players and support from the corporate world. Ke- try are paid top dollar for good talent. nya Airways started off and SportPesa “It is not surprising to find a player run our affairs seamlessly in later joined. Kenya Rugby Union boss in Tanzania earning KSh300,000 per addition to winning several Richard Omwela acknowledges that month while their Kenyan counter- titles because of the financial without the sponsorship, things could parts earn just KSh30,000. It is a sad stability that we have not have been good. “It is the kind of state of affairs which must be sponsorship that has come a long way addressed.” experienced,” Charles Obiny, to help us move forward. We appreci- director, Tusker FC. ate such companies that have seen the Email: [email protected] need to invest in sports and also chal-

October 2016 31 Management Magazine S pecial Report New trends in sports marketing Sports marketers need skills for integrating different elements of social media such as tweets, blogs, wall posts, and chats.

By JOHN OREDO

am Fullerton and Russel Merz in marketing therefore, is the application a paper titled The Four Domains of marketing principles in an effort to Sof Sports Marketing published in satisfy the needs of sports consumers the journal Sports Marketing Quarterly and customers. It is a double pronged trace the genesis of the term “sports concept that means both marketing marketing” to a story in the 1978 issue of sports and marketing through of the magazine Advertising Age. In sports. Marketing of sports involves that magazine, sports marketing is promoting sports products and described as activities of consumers services to a targeted set of consumers, and industrial products and service while marketing through sports marketers who are increasingly using implies marketing an array of non- sports as a promotional vehicle. Sports sports products to market segments

32 October 2016 Management Magazine that have a personal investment in Digital media assets proper segmentation and targeting, sports entities such as athletes, events Digital media is shifting the nature e-mail lists can be used for sending and teams. of marketing to one of customer information about products, services, There are three guiding principles centricity, massive micro-campaigns content and even announcements. The to sports marketing. The first is to and focus on the customer’s decision best way to credible lists is through understand the sports marketing focus journey. A sports marketing strategy subscription. in terms of marketing of sports and like any other marketing strategy marketing through sports. The second should identify and define digital Getting it right principle is about determining the media assets to employ. This process The poster child for digital market- nature of the product or service being will take a deep appreciation and an ing is indisputably social media. As marketed – are they sports or non- understanding of what each digital the number of social media users climb sports products and services. Lastly, media asset, whether a technology or with Facebook hitting 1.71 billion users determining the level of integration of a platform, has to offer and the vision followed by Whatsapp at 1 billion as at sports within the marketing strategy. to innovate with it in ways that suit September 2016 (Statistita.Com), many All these principles need to inform any sports marketing. The other important companies are going beyond simply sports marketing strategy, whether consideration in identifying digital establishing a social presence to aim at traditional or digital. In sports market- media assets to employ in a marketing getting social media marketing right. ing today, it is important to note that campaign is the type of sports product Sports fans today are more connected the digital natives – that generation being promoted – is it a fun product to social media during sporting events of citizens that have grown up taking or it is primarily useful? According to and marketers who are able to reach for granted instant access to digital an article by Christian Shulze and col- them during their team’s most exciting information – is entering the workplace leagues on customizing social media moments will be able to expand reach, and would be the greatest consumers marketing published in the Winter activate fan bases and drive engage- of sports products and services. This 2015 issue of MITSloan Management ment. Sports marketers need skills generation, also known as the netizens, Review, broadcast messages are as for integrating different elements of forms the mass market of tomorrow. effective as direct messages when social media such as tweets, blogs, The changes in consumer behaviour marketing fun products but not when wall posts, and chats. One way that as epitomized by the netizens require marketing useful products. allows users to create content around a marketers to rethink their marketing Most organizations today rely on particular theme, maybe a player or an strategies in the digital domain. Digital their websites to reach a broad range impending match is by creating hash marketing is poised to overtake tradi- of current and potential customers. tags (#). From the aggregated content, tional media given that they are “lean A company’s website provides the marketers can identify influencers – forward” as they require greater degree first contact point between a seller usually self-made, who have caught of interactivity compared to traditional and a potential customer. An effective the attention of certain demographics. media, which involves little interactiv- website should exhibit good quality These influencers can be used to ity and are therefore said to be “lean around its appearance, content, us- bring sports services and products back.” ability and information architecture. to the attention of customers. In the For example, a sports league’s website middle of all these digital media should have information about the content, big data analytics plays a big fixtures, match results, how to get role. Current digital media ecosys- tickets for each match, league stories, tems are closely associated with large links to individual team’s websites, amounts of data (volume), high rate of communities and fan pages just to data creation (velocity), different types mention a few. The website content of data (variety) and varying cred- can be in the form of blog posts, ar- ibility and reliability of data sources ticles, e-books, videos and infograph- (veracity). This type of data requires ics. An interesting website is a value new techniques to capture, analyse added experience. Websites can also and store. The analytics part is what be used as tools to mount marketing enables marketers to mine the big data through sports campaign. A spon- for patterns and trends that can inform sor of a team can conduct affiliate marketing strategies. advertising through the website of the team. E-mails and subscriber lists are Dr. John Otieno Oredo is a lecturer also useful tools for sports market- and researcher in digital business ing if used judiciously. E-mail lists strategies and holds a PhD in Strate- have become a precious commodity gic Information Systems.Email:john. for both good and bad reasons. With [email protected]

October 2016 33 Management Magazine Advertising Feature The journey of transformation

Key innovations and new technology have strategically positioned Posta to remain relevant in the market, says Postmaster General, Daniel Kagwe.

By KEVIN M MABONGA

ostal Corporation of Kenya has embarked on a three- year Pprogramme that aims at turning it to a commercially viable entity. According to the Acting Postmaster General, Mr. Daniel Kagwe, the Corporation, whose key mandate is to provide accessible, affordable and reliable solutions to all Kenyans, has already started implementing its strategic plan 2016/19 that was officially launched early September, 2016 in Nairobi. “To achieve this, we must have an inclusive postal service which is accessible to everybody,” notes Mr Kagwe. He further urges Kenyans in their various capacities to support and embrace Posta and its products so that they can fully enjoy the benefits. He says that it is in the interest of everybody to see Posta Kenya grow both in business and service delivery. Mr. Kagwe, has a wealth of experience in both private and public sectors in the financial, courier and logistics industries in Kenya and the wider East Daniel Kagwe, acting Postmaster General, Postal Corporation of Kenya. African region for over thirty years. Photo: Courtesy. He joined the Postal Corporation of Kenya in March 2013 as the Director, requirement is a primary target to force will advise on ways to revamp Strategy and Business Development Posta Kenya because we value our Posta to enable it provide efficient and appointed as the Acting Postmas- customers. services at national and county levels, ter General on 21st July 2016. Mr. Kagwe says that the corporation ministries and private sector. Through provision of innovative is repositioning itself to match the cur- Serving the masses communication, distribution and rent needs of society. “That is why we financial solutions to customers, Posta have embraced technology and are in Adoption of technology has been a key Kenya aims to be the leading global the process of moving towards paper- area in the transformation process. The provider of innovative postal and less post,” he adds. automation process is almost complete related services. In July 2016, The Cabinet Secretary in the 47 counties. The process has With a vast network comprising for Information, Communications and enabled the corporation to actualize 623 Post Offices managed fewer than Technology (MoICT) Appointed a task new developments that have been well 8 regions, PCK targets to improve force with an aim of rationalising the received in the market, thanks to its penetration levels in order to meet the current post office network in Kenya loyal customers. Universal Service Obligation (USO) to align with current trends and new Through its improvement of pro- - which requires that one post office information and communication tech- cesses and systems, Posta Kenya has serves 6000 people. “Meeting the USO nologies. Among other roles, the task achieved a number of milestones. The

34 October 2016 Management Magazine Advertising Feature

Huduma initiative for instance, where since the banking services are brought positioned itself to remain relevant in Posta hosts a one stop shop for all closer distance and also reduce the the market. According to Mr. Kagwe, government services has been of great cost of banking. the only way to stay relevant is by convenience to the people. Most of M-post is another new innova- embracing technology. He says that the services such as birth certificates, tion, thanks to technology. Through the new products such as M post have national identity cards, passports, this product, one gets to enjoy Postal been fully embraced by many. He registration of business names, applica- Services at his or her convenience says that Posta Kenya will continue to tion for marriage certificates, drivers’ through the mobile phone – Posta launch new products or modify exist- licenses, police abstracts and many Mkononi. The procedure to join is ing ones to match the market needs. other services in one place can be done very simple. One simply sends an sms Other than high maintenance cost of here. The center is operational in 40 “Mpost’ to 40777, enter full name as fleet, the corporation has experienced major post offices countrywide. per the ID and follow with the ID or other challenges such as high cost of passport number. You will receive an doing business due to the existing taxa- Paperless and efficient sms confirming your code. Enter the tion policies, the fast pace of evolving The ERP Automation is another suc- post office code of the preferred letter technology and high staff cost. Also, cess. This aims to transform Posta collection point e.g. 00100 (which is resisting change has been a major chal- Kenya to a paperless and efficient GPO) Or 00200 (Which is City square). lenge at the corporation making it dif- business enterprise. The process The registration will be completed by ficult to achieve set goals. Mr. Kagwe commenced on 1st April 2014 and is Lipa Na Mpesa, by sending Ksh.300 to hopes that the institution will get expected to be operational by April pay bill No.506500. The full process financial support in order to fully meet 2017 in 475 offices. The CEO notes that can be accessed via https://posta.co.ke/ its Universal Service Obligations. the implementation of ERP Automa- site/mpost/ . tion will see service delivery improve The Mpost product comes with a Empowering employees greatly. It will also facilitate easy access number of advantages. For instance, Effective management skills are at the and fast track the processes. one only needs Ksh 300 annually thus heart of every successful organization. There is also Posta Pesa, the e- making it affordable. The user can Mr. Kagwe attributes the success of Payment system that has helped Posta easily track mails from the mobile Posta Kenya to effective management Kenya transact electronic Agency phone and get a notification once it is system. He says that empowering Banking, Mobile Money Transfer, card received. You also have the option of employees is important for them to based transactions, e- Commerce, getting it delivered to your preferred develop relevant skills. This will give Online disbursement and e- Payments. location using Posta Dispatch or EMS them the confidence to discharge their The system comes with a number of services. Since one is using his or duties. “I am open minded, clear and benefits including increased revenue her own mobile phone, security and believe that everybody can be able to from new sources of income and di- privacy are guaranteed. This service manage their duties without necessar- versification of business, offers clients is also applicable to those who have ily being pushed”, opines Mr. Kagwe. the convenience and ease of access physical postal addresses since they He says that for one to deliver ‘there will receive notifications whenever is need to enjoy what you do’. He also Most of the services there is mail. points out team work as an important According to Mr, Kagwe, partner- aspect in organizational success. such as issuance of birth ships with other institutions is vital in The institutions work value revolves certificates, national identity enabling easy accessibility to services around integrity, professionalism, cards, passports, registration and business in general. Posta Kenya teamwork, stewardship and entre- of business names, works closely with Kenya Commer- preneurship. With this, the institution cial Bank, Corporative Bank, National aims to expand business by doing application for marriage Bank of Kenya, Credit Bank, and more business with the government, certificates, drivers’ licenses, Barclays Bank enabling customers to get more financial support through police abstracts and many check balance, withdraw or deposit Universal Service Fund to meet its other services are offered at their money at various outlets. The obligations and government support corporation targets to engage with on infrastructure development which Posta Kenya.” other institutions in the future. is an important part in Posta Kenya’s With the innovations and overhaul strategic plan. of the system. Posta has strategically [email protected]

October 2016 35 Management Magazine Advertising Feature Britam Asset Managers excites market with fresh ideas, eyes more institutional investors

iversified financial services winning unit trust that invests only in company Britam Holdings, is equities across the local, regional and Dplanning to grow the portfolio offshore equity markets. It is suitable of investments under its asset- for investors looking for a long-term management arm, as it continues to investment of five years or more. The consolidate its position as the market fund invests across the region thus leader in fund management. providing proper risk diversification Britam Asset Managers Kenya Ltd, as well as high returns. THE the investment subsidiary of Britam ANNUAL Holdings and the largest fund man- Wealth management solutions ager by revenue in the country, is a Besides investment, Britam Asset Man- major player in the wealth advisory agers also offers wealth management posits that mature within 12 months. and management segment and has solutions to high net worth clients and HR SYMPOSIUM The fund’s objective is to derive inter- 3RD consistently maintained the lead in the institutions through the BritamCash est income for investors in low risk Kenyan market for the past four years. Management Solution and Active Strate- Theme: environment. The fund is attractive The Company provides asset and gies Fund. to investors because of its flexibility,” Gaining Competitive Advantage through HR Innovation wealth management solutions such “As professional fund managers, we said Kaniu. as unit trusts, wealth management, also offer fund management services to The company’s innovation culture property, and discretionary portfolio pension schemes through segregated has been recognized severally by the management. mandates and umbrella pension fund Corridor Springs Hotel, Arusha Think Business Investment Awards, The dedicated team of 60 profession- where retirement investments of mul- 2016 where the fund has been presented 25—28 October als works to ensure they not only meet, tiple employers are pooled together, with the best performing money mar- but also exceed clients’ investment reducing the average cost per member ket fund award. needs and fulfil their financial goals. and enhancing the overall returns and Another notable CIS vehicle, The The Capital Markets Authority (CMA) benefits to both the employer and the Bond Plus Fund, invests purely in Trea- and the Retirement Benefits Authority employees,” said Kaniu. sury and Corporate bonds, earning in- (RBA) have licensed the company to Britam is a leading diversified terest income, which is then disbursed operate as a Fund Manager. financial services group, listed on to the unit holders every six months. the Nairobi Securities Exchange. The This fund is considered a moderate Innovative products group has interests across the East- risk fund with potential for stable and Britam has kept its position at the fore- ern and Southern Africa region, with long run returns, and is best suited for front of the industry by introducing offices in Kenya, Uganda, Tanzania, unit holders looking for stable long- innovative products to fulfil the chang- Rwanda, South Sudan, Mozambique term income. ing needs of these investors. Kenneth and Malawi. “We cater for various clients, includ- Kaniu, Chief Executive Officer says The company offers a wide range ing those interested in Kenya’s vibrant that the company has a large stable of of financial products and services in stock market as well as those inter- Collective Investment Schemes (CIS) – insurance, asset management, banking ested in treasury securities, through a where a number of investors pool their and property. professionally run equity fund called money into a portfolio, which is then The product range includes life, Britam Balanced Fund. The product is managed by professional investment health and general insurance, pen- suitable for those looking for medium managers. sions, unit trusts, investment planning, to long term investment vehicles, with “The Britam Money Market Fund, wealth management, offshore invest- decent returns,” explained Kaniu. a CIS vehicle- invests in short term ments, retirement planning, discretion- One of the key investment chan- instruments such as Treasury Bills and ary portfolio management, Property nels, Britam Equity Fund, is an award bonds, commercial paper and bank de- development and private equity.

36 October 2016 www.kim.ac.ke Management Magazine THE ANNUAL 3RDHR SYMPOSIUM Theme: Gaining Competitive Advantage through HR Innovation

Corridor Springs Hotel, Arusha 2016 25—28 October

Octoberwww.kim.ac.ke 2016 37 Management Magazine Advertising Feature Making it easier to earn an international degree locally

By JAMES RATEMO

ith the mushrooming of higher education colleges Win Kenya, learners are often at a crossroad on which institution to choose and get value for their money. Teaching in these colleges has not always responded to market needs by churning out graduates with relevant skills and knowledge. Intel College is banking not only on quality education but also a strong support system for its learners to remain a favourite learning centre for Anita Aggarwal, many. According to Anita Aggarwal, Director, Intel Director, Intel College has partnered College. Photo by: Sammi with UK’s University of Sunderland to Nderitu offer honours degree programmes in both Computing and Business at the institution. “Our Vision is to contribute toward This prepares the students to suc- requirements for credibility. the Kenya’s vision 2030 by developing cessfully work in local and global en- The modern competitive economy a knowledge economy and leadership, vironments. “With the University run- that we find ourselves in, needs work- through employability of our gradu- ning their degree programmes at Intel, ers who possess skills, knowledge ates and a strong student experience,” it means our students have teaching and attitudes appropriate in any work says Aggarwal. and learning opportunities that meet situation. Employees must have the Kenya’s Commission for Univer- both the Kenyan and UK standards ability and willingness to continually sity Education (CUE) approved the of education. From an institutional adapt, in order to prosper in this fast- collaboration that has seen the college perspective, Intel College also focuses changing economy. gain a global influence and reputa- on the priorities of both Kenyan and In today’s knowledge society, Intel tion. Through the partnership with the UK Higher Education sector, which in- College works to offer courses of study University of Sunderland, Intel College cludes development of employability where teaching practice has evolved to students have the opportunity to gain opportunities of its graduates,” says facilitate the development of capable a UK qualification while studying in Aggarwal. graduates. The College ensures that Kenya. Aggarwal says listening to students’ graduates have qualities and skills Academic teams at both centers needs through continuous student that enable them compete and play a continuously work together to ensure feedback mechanisms is key to ensur- productive role in the economy. that the Sunderland University pro- ing that students’ expectations are “At Intel we ensure graduates grammes taught in Kenya, are compa- understood and met. “Students as key have qualities and skills to play a rable, yet equivalent. This means that stakeholders of education, have option productive role in the economy and students gain knowledge through a of choosing where to study. Focusing go beyond the disciplinary expertise learning ethos recommended by the on quality is what keeps us competi- or technical knowledge that have UK institution, earning a degree that is tive.” traditionally formed the core of most equivalent to that achieved if they had courses,” she adds. Stringent requirements studied in the UK, while ensuring that The academicians at the college the course content is contextualized for Institutions of higher learning should work with practitioners to address local relevance. comply with government and industry

38 October 2016 Management Magazine Advertising Feature any skills gaps. This information is Our Vision is to contribute toward the Kenya’s vision 2030 then fed back into upcoming academic by developing a knowledge economy and leadership, programmes, and sent to academic through employability of our graduates and a strong partners such as the University of Sun- student experience,” says Aggarwal. derland that the college has partnered sonal tutors help students tackle a va- with. Regular academic audits by UK riety of topics including career choice At Intel College, it starts with examination bodies have continuously and progression,” says Aggarwal. working with government by being ensured that there is confidence in the She adds that the college’s strong compliant with the law, and assuring college’s management of academic links with its international partners students that time spent in study at the standards and enhancement of learn- such as the University of Sunderland, college will be given recognition and ing opportunities for students. UK, and accreditation with reputable validated by employers and other key Continuous career guidance at local and international examination stakeholders. Learning is enhanced Intel College empowers students to bodies gives the institute a solid plat- by employing latest technologies consider their academic performance, form and the confidence to tackle edu- including video conferencing to share personality, strengths and interests cational challenges that may lie ahead. knowledge between learners in Kenya in choosing careers. Such attributes Intel College has been in the higher and instructors at the University of are embedded in teaching thus education business for close to 30 Sunderland in the UK. helping students realise the connec- years now. Regular academic audits by

tion between their education and Career guidance UK examination bodies have continu- employment. In addition, students ously shown that there is confidence To ensure the college remains rel- participate regular employability skills in Intel’s e management of academic evant in the quickly changing industry, workshops on CV writing, personal standards and systems for the mainte- Ms Aggarwal says compliance with statement writing and interviewing nance and enhancement of the quality the law, effective course delivery, qual- skills empower students as they enter of learning opportunities. ity assurance and ensuring conducive the job market. “Students also visit student experience will remain key companies to get a feel of different Email: [email protected] priorities of the College. work places. During such visits, per-

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October 2016 39 Management Magazine Advertising Feature T owards a sustainable future

For every individual, financial success especially in old age ranks top among other concerns. Enwealth Financial Services is one company that solves this concern.

Simon Wafubwa, Chief Executive Financial Services prides itself in inno- Officer, Enwealth. Photo: Courtesy. vative social security financial products that have enabled the company attract over 100 corporate clients, and the number is still growing. “Enwealth is basically enabling wealth creation for a better tomorrow,” says Wafubwa of the company whose vision is a ‘Dignified Retirement Life for all’. The company’s mission is ‘En- riching Lives through innovative social security financial services’. “Our aspiration is to secure a dignified retirement life in three ways. We aspire to get you an income replace- ment through our retirement pension products, get you a healthcare product in your retirement and enable you to have a house while you are still working and young to enjoy the house so that you retire when you have a house, a medical insurance cover and a pension,” articulates Wafubwa. In its few years of operation, the company has won recognition and awards from industry players. It received the Ethical Business Practice Award after going through a survey by ELNET. This is an award that shows that the company is ethical in its dealings and that it upholds high standards of integrity. In 2014, the company was rated the 2nd runners up for the best Pensions Administrator of the year by Think Business.

Changing tact, expanding business The company started in February 2011 as Liberty Pension Services Ltd with an office on Nairobi’s Mombasa Road. But in May 2016, and after a five year period of steady market growth, By CYRUS KINYUNGU it rebranded to Enwealth Financial Services. Wafubwa explains that the rebrand- he company has been in and is still growing tremendously ing was informed by a strategic plan- existence for barely six years, but due to the unique products it has ning review which revealed amazing TEnwealth Financial Services’, the introduced in the market. opportunities that exist both within pension funds administrator has built The company’s Chief Executive Offi- and out of the country. “In response an enviable portfolio of KSh45 billion cer Mr Simon Wafubwa says Enwealth to those opportunities, we thought

40 October 2016 Management Magazine Advertising Feature we needed to start walking from the draw down enables one to hedge growth in the pensions sector. With the journey of excellence and mastery. We against inflation. The fund managers pool of financial resources around this, thought it was prudent to have a more seek to make returns on investments the government can make utility of it inspiring and an assuring brand that is which is always above the inflation by way of borrowing for infrastructural aligned and alive to the strategic intent rate. development. This can contribute to the of our market positioning,” the CEO economic growth agenda of the country. says. Pillars of success In the few months after its rebrand- Wafubwa attributes the growth to the Major challenges ing, Wafubwa says, the company company’s innovative products and However, he laments that taxation has has managed to get an additional 10 the country’s steady economic devel- continued to be a major barrier. He is corporate clients and prides itself as the opment. Enwealth has now come up concerned that comparing taxation in first in the market to have developed a with a personal pension plan for the this country on pension to other coun- diaspora pension product. SME market and individuals. Despite tries, a lot leaves to be desired. Even the country’s insurance and pension death benefits are taxed, sadly. Ac- Reaching the masses sectors penetration being low, En- cording to him, this is indeed one area The Enwealth Diaspora and Expatri- wealth has witnessed a steady growth where the government should improve ate Fund’s main objective is to provide in client base for their products in the on by exempting retirees from taxation a retirement saving vehicle for the two areas. on their pension benefits. diaspora community. The product “The opportunities in this country This is, however, not the only chal- design enables members of the scheme are quite amazing. Resources are not lenge that Enwealth has to contend to enjoy high investment returns with scarce, it’s only resourceful minds with in its business. Wafubwa says they flexibility of benefits’ portability with which are,” he notes. Wafubwa says have to contend with barriers in terms a focus on effective management of the company’s innovations are not of people’s saving culture. “People underlying investment risks. Its de- only in terms of product design but think their children will help them in velopment was driven by the fact that also on how they are distributed. The their retirement, which is no longer Kenyans around the world do not have company’s area of focus, he notes, happening. Some also think they don’t an effective social security platform has been on how to change mind sets have enough to save, which is not true. that addresses their social needs. This through trainings for people to have It is just an issue of attitude. We are in scheme, the company’s website says, saving as a priority. a culture where people would want to is registered with both the Retirement Another pillar that has contributed enjoy now rather than later and that Benefits Authority (RBA) and Kenya to the company’s success has been is costing them their future. If you eat Revenue Authority (KRA) for the pur- its strength in Information Commu- your future now, your future will have poses of Tax exemption. nication and Technology (ICT). He nothing else to eat but you,” he advises. The fund targets Kenyans working revealed that ICT has not only been On Enwealth’s growth projections in in the diaspora, expatriates working a driver but also an enabler, making the next five years, Wafubwa says the in Africa and expatriates working in product distribution get a wider reach. company is currently in the process of Kenya from other countries (mainly UK “We developed the first ever scaling up its presence in the continent and USA). working member and trustee online of Africa. The company is presently do- “We were also the first to develop an portal of its kind-where members get ing registration in over 20 African coun- income draw down fund which is an statements online. We have the first tries. The CEO equally applauds the option to annuities,” says Wafubwa. ever pension mobile app which is leadership of Nelson Kuria, the chair- The product, known as Enwealth Kesho very unique,” he proudly notes. The man of the company. He explains that Hela Income Draw Down Fund, targets online portal has been a blessing to the Kuria remains part of the key driver to retirees, including those on early retire- company. It has created cost efficient prudent strategic growth initiatives that ment. Self-employed individuals who and optimised customer delivery stan- has not only ensured a steady growth would like to have a monthly income dards and overall satisfaction but also good corporate governance. for themselves or their parents, can The growth of the country’s “We see ourselves playing in the also benefit from the fund. The income economy which has seen the balloon- space of market leadership, leveraging of the middle class coupled with ing on the ICT platforms in terms of Its development was increase of the disposable income product distribution and innovation of among Kenyans has also contributed driven by the fact that products in financial services to have a to the growth of the industry. wider reach,” he concludes. Kenyans around the world Wafubwa notes that the pensions do not have an effective sector in the country has had an amaz- social security platform that ing growth, currently standing at close Email: [email protected] addresses their social needs.” to one trillion shillings. The country now stands to benefit more with the

October 2016 41 Management Magazine Corporate Case Study

than any other area of life. This could be because sports have a strong appeal to certain consumers, particularly young men. As a result, the image of sports and the players are of growing importance to marketers. Companies pay millions of dollars each year for the endorsement of their products by athletes. Even smaller companies with limited budgets are beginning to use sports and athletes to promote their products. In return for the large expenditures, athletes are expected to accomplish a number of objectives - capture the attention of consumers, strengthen recall of the brand name, reinforce the image of the product, give the message credibility, increase product attractiveness, increase liking of the ad and the likelihood of purchase. Achieving these objectives successfully rests on the consumer’s evaluation of the endorsement.

Target market’s response Companies that opt to use athletes to endorse their products should evaluate several issues. At least three of these issues center on the target market’s response to the endorsement. The first is whether non-sport products differ in their ability to derive a positive consumer response from being associated with sports and athletes. Managers need to ask themselves; “Is this the right product to use sports in my promotion and When picking an advertising? Will my product benefit from an association with sports and with an athlete?” athlete to endorse a The second issue is whether the type of sport by itself can affect the consumer response to an endorsement. non-sport product… The key question here is: “If I decide to use an athlete in my promotion strategy, does it matter which sport the ... consider the sport of the athlete as well as the athlete comes from?” consumers’ attitude towards the ad and the product. The third issue focuses on whether the manager is better off trying to find an athlete from a sport that is he endorsement of products unexpected by consumers and so will by sports personalities has capture the attention of the manager’s Tproved to be a very powerful target market, or whether the manager marketing strategy. Today, sports are should try to find an athlete from a given more media coverage, especially sport that consumers feel fit well with on television and radio, perhaps more the manager’s product.

42 October 2016 Management Magazine Corporate Case Study

The manager is expected to pick an when an athlete endorses a product, evaluation. Therefore, the manager athlete spokesperson with the right set the sport forms the foundation for that should probably look for athletes of characteristics, who will produce endorsement. whose images bring the product the most favorable response from image even closer to the endorsement consumers. Knowing if, independent Results established image. The one possible exception to of the athlete’s physical appearance The purpose of the study presented this is that a moderate discrepancy in and personality, athletes from some in this article was to establish if the the image of the athlete, if handled sports are more effective than others sport that the athlete plays can have correctly, may actually enhance the for endorsing the manager’s particular a significant effect on consumer endorsement evaluation more than product would be important. evaluations of the endorsement an athlete with a closely fitting image. If the type of sport really does not and hence, the product. Results of However, this effect is not something have an effect on consumer response, the study by James Martin were to be pursued for all products. then searching for the athlete with published in the Journal of Consumer Consumers’ evaluation of the the most appropriate personality and Marketing under an article titled, Is the endorsement by those athletes with physical appearance at the least cost, athlete’s sport important when picking an the images that enhance the fit regardless of the sport, would be the athlete to endorse a non-sport product? between the product image and the manager’s best decision. Some of the results indicated endorsement are then measured. The Celebrity endorsers, including that some non-sport products are athlete accomplishing the greatest athletes, are effective because they better than other non-sport products number of objectives would be bring to the endorsement a host of at producing positive consumer selected. characteristics that the audience evaluations of an endorsement and uses in evaluating the ad. For that for a given product, some sports Recognisable athlete instance, it is now a known fact that are better than others at producing The choice of an athlete to endorse a spokesperson’s gender, physical positive endorsement evaluations. a product is a critical decision. attractiveness, trustworthiness, and a This shows that the sport and not Common sense would suggest vast array of personality characteristics just the athlete is an important factor that a well-known, well-liked, all have an effect on consumer in determining the success of any recognisable athlete is the key to response to an ad. endorsement. Identifying the degree making a memorable endorsement McCracken G in an article published of fit between the sport, the athlete advertisement. Given the high costs in Journal of Consumer Research and the product is an important associated with athlete endorsements, suggested that as consumers process first step in picking the best athlete a logical question to ask is whether information from an ad, they use to endorse a product. There is a the athlete endorsement can do more information about the celebrity to systematic series of steps to follow to than catch the consumers’ attention. make inferences about the product. acquire the appropriate information: The results from this study suggest This transfer of information from the First, the image of the product must that considering the sport that the celebrity to the product is, in part, be assessed. This is done through athlete comes from can further what makes celebrity endorsements market research with consumers enhance the endorsement evaluation so effective. The information about the where factors that consumers think and hence, the consumer’s attitude celebrity that is used by consumers of when they think of the product are toward the ad and the product. As includes the activities that made the identified and measured. McCracken (1989) has suggested, person a celebrity. For athletes, the the foundation of the success of a sport that they are in is the activity Closest fitting sports celebrity endorsement is based on that makes them a celebrity. Therefore, The next stage of market research whatever gives the spokesperson would go back to consumers with celebrity status. In the case of an these image factors and measure athlete spokesperson, the foundation the amount of these factors that are for success rests in the sport from I dentifying the degree perceived to be in a variety of sports which the athlete comes. of fit between the sport, to determine the sport(s) with the the athlete and the product closest fit to the product. This is an extract from James H. is an important first step in Athletes from the closest fitting Martin, (1996),”Is the athlete’s sport sport(s) must be identified - those important when picking an athlete to picking the best athlete to who have images that also closely fit endorse a non-sport product?” Journal of endorse a product,” JAMES the image of the product. At this stage, Consumer Marketing, Vol. 13 Iss 6 pp. 28 MARTIN. the manager is looking for an athlete’s – 43. The full study is available at http:// image that will enhance the effect of www.emeraldinsight.com/. the sport’s image on the endorsement Source: Emerald Insight

October 2016 43 Management Magazine New Knowledge

By SANCHIA TEMKIN

he Internet, video games, A new phase in television, and filmed Tentertainment segments of sub-Saharan Africa’s entertainment Africa’s entertainment and media industry are projected to continue to grow in the following and media industry years but the publishing industry is having to work very hard to make any headway, according to PwC’s Entertainment and media outlook: 2016 The PwC’s Outlook Report presents annual historical data – 2020 report (South Africa – Nigeria – for 2011 – 2015 and provides annual forecasts for 2016 – Kenya) that was released in September 2020 in 11 entertainment and media segments for South 2016. Africa, Nigeria, and Kenya. The Outlook presents annual historical data for 2011 – 2015 and provides annual forecasts for 2016 – 2020 in 11 entertainment and media segments for South Africa, Nigeria, and Kenya. It covers the internet, television, filmed entertainment, video games, business-to-business publishing, recorded music, newspaper publishing, recorded music, magazine publishing, book publishing, out-of-home-advertising and radio. Aside from the Internet, the Outlook predicts that growth will also be seen in the video game market, filmed entertainment and television segments. “As Internet revenue continue to rise, the forecast for newspaper and magazine circulation is on the decline as consumers migrate from print copies to free online alternatives – and aren’t as yet moving to paid digital formats in great numbers,” says Vicki Myburgh, Entertainment and Media Industry Leader for PwC Southern Africa. South Africa has the largest TV market in Africa and continues to grow strongly, with pay-TV subscription revenues expected to expand by five per cent. Alongside video providers, the B2B market will be a strong source of revenue for South Africa’s entertainment and media industry over the next five years. By contrast, the newspaper market in South Africa is expected to shrink. Circulation figures are also forecast to start declining, as price rises are unable to compensate for the declining numbers of copies sold.

44 October 2016 Management Magazine New Knowledge

A growing number of South Key shifts emerge bundles grows, it is believed that Africans are accessing magazine As these high-level trends play out, the bulk of digital OTT mass-market content and websites via their smart the PWC research has pinpointed services will gradually be reabsorbed devices, but the boom in smartphone key shifts occurring in each of five into aggregated offerings that will and tablet ownership will be the dimensions of the entertainment echo the traditional analogue-style biggest driver for digital magazine and media landscape. These bundle, but that will be more flexibly revenue growth over the forecast are: demography, competition, priced and available on a full range period. consumption, geography, and business of devices. When this happens, the The report shows that South models. competitive battle may move up Africa’s total entertainment and media a notch, as cable, technology, and advertising revenue is expected to Shift 1. Demography: Youth will telecom players fight over gaining rise, with only newspaper advertising be served access to distribution. revenue forecast to take a downward The analysis of national entertainment turn. TV advertising continues to and media markets globally reveals an Shift 4. Geography: Growth dominate the market, but Internet almost perfect correlation between the Markets advertising is combining scale with relative size of the under-35 population Generally, entertainment and a great pace of expansion, and will and growth in entertainment and media companies had one set of become the second-largest contributor media spending—confirming that expectations about developed to revenue by 2020. younger consumers are now the markets (slow growth, low regulation, primary drivers of global growth. The easier to access) and another about Nigeria analysis of total entertainment and developing markets (rapid growth, Nigeria has one of the fastest-growing media revenue growth in the world’s high regulation, harder to access). markets in the entertainment and 10 youngest and 10 oldest markets in But the dynamics are shifting rapidly media industry. In 2015 it saw 15.7 per demographic terms reveals that, on as disruption pushes markets to cent growth to reach USD3.8 billion. average, entertainment and media develop in different ways, meaning Internet advertising will see the fastest spending in the 10 youngest markets “opportunity” economies—even growth over the forecast period, and is growing three times as rapidly as in within the same region—can display will come predominantly in formats the 10 oldest markets. significantly varied growth patterns. designed for mobiles, in keeping with the prevailing method of Internet Shift 2. Competition: Content is Shift 5. Business models: access in the country. TV advertising is still king Transforming with trust also benefitting from strong economic In a world where Netflix can Today’s entertainment and media growth and an emerging middle class launch in 130 new countries in a market includes technology with a higher disposable income. single day, it’s easy to assume that companies racing to become hybrid content is becoming more globally content companies, and traditional Kenya homogeneous. But the reality is that publishers evolving the other way Kenya’s total entertainment and media content is being redefined by forces to emerge as hybrid technology industry was worth USD2.2 billion of globalisation and localisation companies. This underlines how the in 2015 and is expected to be worth simultaneously—and that while much growth of technology and digitisation USD3.3 billion by 2020. Internet access of the industry is growing more global, is acting as a centrifugal force— again will be the main contributor, content tastes and cultures remain breaking up existing relationships; if not as dominant in Kenya as in steadfastly local. pushing large, generalist entities to Nigeria, accounting for 43 per cent of give way to smaller specialists; and the total market in 2020. Shift 3. Consumption: The joy of allowing smaller, nimble competitors bundles to beat out incumbents. For The ability for consumers to design incumbent advertising agencies, this As Internet revenue and curate their own media diet has opens up an opportunity to reorient themselves to become invaluable continue to rise, the been one of the most powerful trends to emerge in the industry. But the to markets, by bringing together forecast for newspaper and bundle is far from dead, with video programmatic capabilities, analytics, magazine circulation is on and cable incumbents—which were data aggregation, and native content the decline as consumers initially slow off the mark—now to create the new “super” agency. migrate from print copies to fighting back by offering their content on an integrated omnichannel basis, on Email: [email protected] free online alternatives TV, laptop, tablet and smartphone. SanchiaTemkin is the PwC Head of As take-up of these new-style Media Relations, South Africa.

October 2016 45 Management Magazine Business Etiquette A little courtesy goes a long way #seeyouatthetop

Human beings have an innate desire to be recognised, valued and appreciated for their worth and contribution. By MUINDI KIMANZI Special Offer tO jOin KiM

recognition programs,” according to a to flip the book in order to get to he famous Dale Carnegie’s 2012 report titled The State of Employee the next page and continue playing. prOfeSSiOnal MeMberShip bestselling book, How to Win Recognition by Deloitte. Truman, who was also the host of the Friends and Influence People T dinner walked up to the pianist and @kimkenya alludes to different aspects of human For Graduating The four magic phrases helped flip through the pages until the relations in life and at the workplace. Class of It is upon any company’s management pianist was done playing. Such acts It emphasises goodness, courtesy and and human resource department to cemented his successful presidency and Kenya Institute of Management showing respectful behavior while institute such mechanisms as they legacy. relating with people. Such conduct end up benefiting staff as well as the Courtesy may sound common but it bears tangible results and people tend [email protected] organisation’s wellbeing. Since relating does not come easily. Employees should Are you graduating this year with a to gravitate towards individuals that with staff is a day-to-day business practice, demonstrate emotional fortitude at all demonstrate these virtues. The book is remember to use the four magic phrases times, while at the same time taking KIM Diploma in Management? an awesome read, full of aged wisdom of courteous expressions. These include; intentional initiatives to treat others ‘as and unconventional practices that Would you like to join KIM Membership, thank you, please, excuse me and sorry. It you would love to be treated.’ When signify the essence of courtesy at the is much better when you can demonstrate there are conflicts, remember the famous workplace. have an edge in the job market, and grow as a professional? the same with actions. saying; “a good leader is someone who Generally, people wish to be cared Carnegie points out in his book an can step on your toes without messing for. Author John Maxwell observes that, exceptional figure, former US president, up your shine.” You can become an Associate Member of the Institute at a discounted rate of KES. 2000 “people don’t care how much you know Harry S. Truman whose life was Eventually, polite mannerism until they know how much you care.” characterised by good interpersonal skills with fellow employees will gain you Human beings have an innate desire to Apply online http://www.kim.ac.ke/membership-services/individual/signup_form.php while relating with his staff members. more buy-in to your ideas and create be recognised, valued and appreciated For example, when the White House chef meaningful work relationships. It is for their worth and contribution. made him a cake for his birthday, he ate it good to call to mind that people will Statistics show that organisations that Then pay - Go to M- Pesa > Payment Services > Paybill > Enter business number 896600 > and walked into the kitchen to say ‘thank more often than not remember you not practice employee recognition and Enter your name as Ac/no> Enter amount > Enter pin you’ to the chef. This was such a unique for what you did but simply by how reward mechanisms have a low turnover move as the chef had served in the White you made them feel. of staff members compared to ones that House under many presidents but rarely Courtesy never goes unnoticed. Offer valid from from September to December 2016 for 2017 Membership don’t. “Organisations with recognition received such appreciation. Practicing courtesy at the work place programmes which are highly effective On a different day while having dinner will improve your work relations and Register today and be part of a community of Professional Managers. at enabling employee engagement had at the White House, Truman noticed that improve the company culture for 31 per cent lower voluntary turnover the pianist was having a slight challenge better. See list of membership benefits at www.kim.ac.ke than organisations with ineffective playing through the cords while pausing Email: [email protected] Register at your KIM branch or 46 October 2016 Management Magazine Contact Irene/Sheila/Beatrice – 0719 054 200/215/140 or [email protected] Business Etiquette

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Register at your KIM branch or October 2016 47 Contact Irene/Sheila/Beatrice – 0719 054 200/215/140 or [email protected] Magazine Executive Chat

A vision beyond skin colour

Nominated MP Isaac Mwaura dispels the myth that success in people living with albinism is solely dependent on sunscreen. To him, sheer determination and hard work is enough.

By OBIERO ONYANGO

saac Mwaura illuminates the where parents fight against their own capacity to transform the society. “Life dreams of a special community flesh and blood. “But I have gone is short and harsh, only the strong Iwith congenital disorder, albinism. beyond that and not only learnt to ac- shall survive,” he asserts. He strongly Mwaura has taken it upon himself cept the challenge but also to conform disputes the judgment of albinos to fight for the rights of people to that challenge,” he says during an based on their physical appearance, living with albinism. The 34-year interview in his rather busy office. saying such weapons cannot bruise old outspoken leader has out-lived The nominated Member of Parliament their delicate psyche. widespread discrimination of people for special interest groups is himself living with albinism in Kenya, to a victim of abandonment and knows Embracing success dispel myths about special interest well what it means to be rejected by Laden with a lengthy list of academic groups and success. He says that a father and a bigger part of the com- credentials, countless awards and success in their life is not solely munity. strategic positions he has held both dependent on sunscreen but sheer His father, he said in a televised in political, development and human determination and hard work. interview, abandoned him on condi- rights organisation may be viewed as He acknowledges that everyone can- tion that his lineage has never had too much achievement. not be endowed with everything and children with albinism. Rejection by But these are support tools to his discrimination happens everywhere, a father is a big blow to any child but quest for justice- a higher pedestal to from work places to family settings the strong-willed Mwaura has instead redeem the lost hope through thought lived to expose his strengths and leadership. “My leadership creden-

48 October 2016 Management Magazine Executive Chat

He strongly disputes Some KSh100 million has been directed his progressive advocacy campaigns, the judgment of albinos to education facilities and resource sometimes being pushed to the wall based on their physical centre development. for compromise over protection of the appearance, saying such Another KSh100 million for provi- vulnerable groups. sion of sunscreen lotions and KSh900 One memorable scenario is when weapons cannot bruise their million presidential programmes that he took the government to court for delicate psyche.” should see more children with disabili- procuring the wrong type of sunscreen ties attend schools have been possible lotions at an exorbitant price with- tials come from very far, when I was through Mwaura’s leadership. out proper consultations. This could a class prefect at kindergarten, high On his tray is also a push to have have meant danger for target market school captain and student leader at Albinos engage in National Youth Ser- and more losses for government with Kenyatta University,” he says. vice and paramilitary training to uplift anticipated side effects. “That is how His career growth that placed him at those coming from poor backgrounds people make bad decisions. Every vantage position to directly impact the and help them fend for themselves to time you are given a bribe in exchange lives of vulnerable people dates as far sustainability. He is also behind the of your voice you are creating a struc- as a decade ago when he begun man- push to have sign language interpret- tural injustice against people you are aging civic education to help people ers in television stations in the country. supposed to protect,” he argues. across 26 districts learn basics of inter- A combination of experience, aca- Institutional integrity emanates acting with the government. He is man demic credentials and some political from individual integrity, personal who has worn many hats, from being a position is the right mix to influence character cannot be legislated. His programmes officer at United Disabled public policy and delivery of services push saw the procurement board dis- persons of Kenya, advisor – Human to the marginalized. banded, right people picked and the Rights and Program Development for “If you are not represented in poli- right affordable products were deliv- an International development Charity, tics you don’t matter, this position is ered. Mwaura is leading a revolution voluntary services oversees, program extremely important,” he admits. He to bring dignity and wider acceptance coordinator, gender and youth devel- has declared interest in Ruiru Par- by the community as he opens links opment (African Union of the Blind) liamentary seat in the 2017 general that would empower albinos manage among many other. election. Mwaura is armed with a post- themselves in future. He has also worked at the National graduate diploma in Public Relations Council for Persons with Disabilities Management from Kenya Institute of Email: [email protected] as the acting Deputy CEO and head Management (KIM) and a Diploma public relations and communications in Theology. His admirable work has before he was spotted by the former attracted international eyes to earn On 21st October 2016, the first Prime Minister, Raila Odinga for a him a Masters degree in Social and ever Mr and Miss Albinism 2016 more strategic position- advisory. As Public Policy as a Ford Scholar from will be held. The society seeks an advisor for special interest groups the University of Leeds and another to create brand ambassadors all at the office of prime minister, he had Masters Degree from Nelson Mandela over Kenya and other East African gained a huge influence over reforms University, South Africa. He is waiting countries to represent Persons in Public Policy making relating to dis- for a historic honorary doctorate award with Albinism (PWAs). ability, minorities, marginalised groups by an American University for his The campaign, themed My and youth. leadership and contribution to reforms beauty My pride, will be running His plunge into politics in 2013 that changes perception on how people every year, entirely to promote self opened him to more flexible positions view those with albinism. awareness of PWAs in the society that allowed him to work on behalf and stop vices like discrimination of people living with disabilities. His Leading from the front and stigmatization. membership at the Budget and Appro- Leadership, he says, is leading from Funds that will be raised during priations Committee in the 11th Parlia- the front with the agenda being of the the event will promote education ment has been a major breakthrough people. He admits it has not been an for PWAs, hence open a wider job for the special interest communities, easy task to advocate for justice, as he market for them in both social and with more resources seen trickling confides, sheer tenacity allows one to political responsibilities. down. achieve a lot. “Persons with albinism are “You must have certain characteris- extremely excited about this first More resources tics to avoid being greedy for money ever Mr and Miss Albinism. It has Allocation of resources by the na- or power, you do not need too much never happened before and they tional government towards support wealth or die with too much money. I have an opportunity to showcase of programmes for special groups has believe wealth should be shared,” he what they got and I can assure you since doubled in less than five years advises. Temptations have also marred its something,” Mwaura said. to KSh1.8 billion from KSh700 million.

October 2016 49 Management Magazine Technology

Securing data in the healthcare industry

Why prevention is better than cure in stopping cyber criminals from stealing medical records.

By RICK ROGERS

he healthcare industry, arguably showed that 89 per cent of healthcare one of the most technologically institutions suffered a security breach Tadvanced considering the and were twice more likely to be gadgets and devices now used to targeted than other organisations. monitor health statistics and perform Healthcare record theft increased medical procedures, is ironically a shocking 1,100 per cent this year among the most ‘unhealthy’ when it with more than 100 million records comes to network security. compromised worldwide. The Delegates attending the recent biggest threat, says KPMG, comes Healthcare Innovation Summit were from external attackers – at 65 per told that medical records are cent – while malware tops the list of being increasingly targeted by information security concerns. cybercriminals. Data from the US But why is an industry with the

50 October 2016 Management Magazine Technology technological ability to perform from the bottom up, starting with the surgery on patients in other countries physical layer, comprising devices so sick when it comes to protecting Why is an and other hardware, and working up information? industry with to the application layer. the technological This multi-layered approach to The answer is multi-faceted: ability to perform security gives IT managers more •Valuable data. Data collected surgery on patients visibility into the network so that and stored by hospitals and other in other countries they can see what data is coming organisations, such as medical aid so sick when it into and leaving the network and schemes, is up to ten times more can implement controls as required. valuable to cybercriminals than credit comes to protecting For example, sensitive patient card information. This is due to the information?” information can be encrypted as sheer volume of information gathered it traverses the network between about individuals – and the fact devices, while less sensitive that we’re seeing an increased shift information, such as that collected by spending, a new MRI machine will to digital medical records – which fitness devices, can be subject to less likely win the budget lottery over makes it easy to commit fraud and stringent protection measures. security software. identity theft. Given the value of Education of staff members is this data on the black market, cyber- also critical. They need to be able to •Easy targets. Ransomware is attacks are becoming ever more identify hacks such as spear phishing one of the biggest methods used sophisticated in their attempts to and ransomware attempts so that by cybercriminals to gain access hack healthcare institutions. they know not to click on malicious to medical data. This involves links and to alert the IT department to ‘kidnapping’ the data and only •Ageing infrastructure. Hospitals such attempts. releasing it once the hospital are melting pots of outdated There also needs to be a general pays a ransom. Because medical infrastructure, old operating increase in awareness within the organisations are generally dealing systems and state-of-the-art medical healthcare sector of the various with crises, they need urgent access technology, all communicating over methods used by cybercriminals to their data and are more willing the same networks. Often, hospitals to gain access to medical data. In to pay the ransom to get back up take an ‘if it’s not broken, don’t fix it’ many cases, medical institutions do and running as quickly as possible. approach to technology, so devices not even know that they’ve been Cybercriminals know this and are may not be patched with the latest infiltrated purely because they don’t exploiting it. software versions, for example. The know the warning signs. They need problem, however, is that the system to take a more proactive approach •Lack of understanding and is very much broken. KPMG found to network security and understand awareness. Although medical that, in terms of technical capabilities, how to prevent certain attacks. institutions are becoming more the healthcare industry is behind Security should not be reactive technologically centric, that’s not to other industries when it comes and should not be done just because say they are focusing on technology to protecting infrastructure and organisations want to comply with and there’s a lack of understanding information. legislation such as the Protection of of what’s going on when it comes Personal Information (POPI) Act. to cyber security. There needs to •Complex networks. The fact that so But unfortunately, this is the case in be an increased understanding of many different people, devices and the healthcare industry and it’s the how to defend against attacks like departments need to access a medical reason why they are always one step ransomware, coupled with a bigger institution’s records forces them to behind the attackers. Rather, security focus on educating staff and users on adopt open networks. Add to this should be about prevention and how to spot phishing attacks – people the increasing number of Internet the desire to ensure the integrity of are, after all, the weakest link in the of Things and the myriad Internet- sensitive information. security chain. connected gadgets connecting to the Prevention is better than cure. It network and it becomes difficult to sounds clichéd but, when it comes secure and even more vulnerable to Email: CheckPointSA@we- to security in any sector, prevention attack. worldwide.com Rick Rogers is the certainly is better than cure. Area Manager for East and West In order to gain a holistic overview •No budget. Security spending in the Africa at Check Point Software of the network, technology managers healthcare industry is at times as little Technologies. need to design the infrastructure as one-tenth of what other industries spend. When it comes to technology

October 2016 51 Management Magazine C ountry Focus Uganda offers refugees a home away from home

During the just concluded 71st Session of the UN General Assembly (UNGA 71) which was in September 2016 at the United Nations Headquarters in New York, 193 governments committed to help many more refugees to reunite. In this article, we look at what Uganda has done in empowering refugees to become gainfully employed, self-sufficient, and to live in dignity.

ive years ago, Moses (not his beauty parlor at the Fairway Hotel in real name), 39 years, fled with Uganda’s capital city, Kampala. Fhis family to Uganda to escape “Ugandans are very hospitable and ethnic violence in North Kivu, in welcoming. I make a good living here, the eastern region of the Democratic and can take care of my family very Republic of Congo. Today, he is well,” says Moses, who spent nearly a year in Nakivale refugee settlement employed as a hairstylist at a high-end

52 October 2016 Management Magazine C ountry Focus

of them to contribute to the local Executive Directors approved USD175 million in financing to provide relief It is my view that economy, and rebuild their lives and communities upon return to their to refugee-host communities in the an economically home countries. “It is my view that Horn of Africa, including Uganda. empowered refugee an economically empowered refugee Funding for the Development is beneficial to the is beneficial to the national economy Response to Displacement Impacts national economy,” said and as a nation we should work Project (DRDIP) comes from towards this,” said Marcel Tibaleka, the International Development Marcel Tibaleka, Uganda’s Uganda’s Ambassador to Germany Association (IDA) which is the Ambassador to Germany and and The Vatican, during a dialogue World Bank’s fund for the poorest. It The Vatican. on “Free Movement of Persons,” held includes USD100 million to Ethiopia, last April in Bonn. USD50 million to Uganda, USD20 in Southwestern Uganda before million to Djibouti — all at low to no Influx of refugees finding his way to Kampala in search interest — and a USD5 million grant of employment opportunities. “He is Despite the progressive refugee to the Intergovernmental Authority very talented and hard-working. We policy, Uganda is beginning to buckle on Development (IGAD). IGAD will have seen a significant increase in the under the pressure of the continued use the money to establish a regional number of customers since he joined influx of refugees, particularly from secretariat for forced displacement us,” the salon manager says of Moses. South Sudan. More than 70,000 and mixed migration. The secretariat Uganda is currently the third-largest South Sudanese refugees have fled will support a holistic regional refugee-hosting country in Africa to Uganda since violence broke response, backed by data, to influence after Ethiopia and Kenya. More than out in Juba on 8 July 2016 between interventions in both refugee-hosting 500,000 refugees from 13 countries are government troops of President and refugee-producing countries. settled in Uganda in various refugee Salva Kiir and forces loyal to former The World Bank is working very settlements in nine districts, according First Vice President Riek Machar. closely with the United Nations High to a World Bank study on Forced More than 85 per cent of the new Commissioner for Refugees (UNHCR) Displacement and Mixed Migration in the arrivals are women and children, to seek solutions to the refugee crisis Horn of Africa. Nakivale is the eighth with children comprising 64 per in Uganda, by improving access to largest refugee settlement in the world, cent. This is putting a strain on host basic services, expanding economic hosting more than 60,000 refugees, communities, with local government opportunities, and enhancing majority of them from the Democratic authorities and agencies unable to environmental management for Republic of Congo. cope or provide basic and essential communities hosting refugees. services. “The generosity of the Ugandan Free healthcare and education In Adjumani district, which hosts host community in sharing their According to Urban Rufugees, a non- the bulk of South Sudanese refugees, meager resources and services with governmental organisation, Kampala, the number of refugees has shot up to refugees over decades, especially in the capital city of Uganda, has about 170,000, threatening to outnumber the Northern Uganda, is truly remarkable, 1.72 million inhabitants and the city is 210,000 registered locals in the area. notwithstanding their own struggles,” home to more than 200,000 registered “If the population of refugees in said Christina Malmberg Calvo, refugees, but the actual figure may Adjumani outnumber the population World Bank Country Manager in be higher. The NGO has observed of the host community, the pressure Uganda. that more refugees are moving out of on the environment and social “The DRDIP is a first of its kind refugee settlements and into Kampala, services will be high,” observes Titus for the Government of Uganda as evidenced by the 31,000 new urban Jogo, the Refugee Desk Officer (RDO) and will offer much needed relief registrants filed in 2014. in charge of Adjumani under the to the refugee humanitarian Uganda’s 2006 Refugee Act, Office of the Prime Minister (OPM). response alongside support to host considered one of the most progressive David Apollo Kazungu, OPM communities to cope better,” said and generous in the world, provides Commissioner for Refugees said in Varalakshmi Vemuru, Senior Social free healthcare and education in a statement that people are fleeing Development Specialist and lead refugee settlements and permits because they are afraid for their lives. author of a new World Bank report, refugees to move freely in the country. “Our communities are welcoming An Assessment of Uganda’s Progressive Many refugees like Moses have them and giving them what we can: Approach to Refugee Management. benefitted from Uganda’s open door land and hope for a better future. The author adds that in a way the policy that gives them a chance to But our message to the international project will enable the Government start life afresh, in dignity. Refugees community is this: We need your help to provide a ‘generosity dividend’ are given fertile land to grow food to meet their basic needs until they to the host communities through for the entire duration of their stay are able to stand on their own two investments to improve their social in the country, and can work or set feet.” and economic well-being. up businesses to help them become Access to basic services self-sufficient and less dependent on Source: handouts. This has enabled many In May 2016, the World Bank Board of The World Bank, Uganda Office.

October 2016 53 Management Magazine C ounty Report Building a firm foundation

Governor Alex Tolgos of Elgeyo Marakwet County was recently awarded for spearheading the fight against alcohol and drug abuse. He told MANAGEMENT Magazine that he wants to be remembered as the governor who started off on the right footing to economic prosperity.

What have you done so far in went round interviewing people your capacity to “lay a strong within the county to capture their foundation for a prosperous development aspirations, and this County?” informed the content of the CIDP. This As the first Governor of Elgeyo exercise gave us projections on what Marakwet, I came into office knowing needed to be implemented for five that I had to lay a strong foundation years. So far, we have implemented for future governors. Our first task most of the projects as planned. was to develop a five-year County This is a break from the past where Integrated Development Plan (CIDP) projects were initiated without the using the bottom-up approach. We involvement of the people.

54 October 2016 Management Magazine C ounty Report

One main setback is international expression of interest. however, things are a bit complex and the way government This will enable us find a partner slow. Procurement procedures for who will invest in this project under example are our greatest impediment operates; we have too a Public-Private Partnership (PPP). to achieving faster development. much red tape in our system We have visited the Table Mountains Despite these challenges, we have of governance. That is the in South Africa which has cable cars done our best to be proactive as a reason our development as a and established that this project is county by starting our internal budget very viable and eturn on investment is processes early enough. Serving as country is slow.” guaranteed. a Governor has given me a lot of At Rimoi National Reserve, we satisfaction. It is gratifying to see lives What major projects have you have offered opportunities to private being transformed by what we have spearheaded and how are they investors to set up eco-lodges to cash done as a county Government. helping the people of your county? in on tourists. The Sun and Sand We reduced the cost of Artificial Group of Hotels has expressed interest After your tenure, what one Insemination (AI) from KSh6,000 to and we are inviting more investors. achievement will you be most KSh500 for sexed semen and KSh500 to We have unique dealings with Non- proud of? KSh200 for ordinary semen. We have Government Organisations (NGOs) in The drastic reduction of illicit also hired AI inseminators. Through Marakwet. Instead of working at cross- alcohol brewing and consumption. this programme, hundreds of pedigree purposes and duplicating projects, we When I got into office, the situation calves have been and milk production have harmonised the development was bad. Many people had has increased. Besides, the crop and plans and agreed to supplement each abandoned their farms, careers and livestock subsidies project gives other’s efforts. families due to alcoholism. I took farmers cash crop seedlings in addition the road less travelled and declared to what they have bought to spur What challenges or setbacks have you a countywide ban on brewing and production. faced when it comes to performing consumption despite being threatened In addition, we have built 112 your duties at the county? with political repercussions. modern Early Childhood Centres One main setback is the way We did not just ban, but offered (ECDs) for children who previously government operates. We have those willing to abandon the vice learnt in mud-walled classrooms. too much red tape in our system an opportunity to be rehabilitated Besides, our health centres have of governance, which is the reason and alternative income generating undergone massive transformation behind slow development in Kenya. ventures. We have witnessed and are adequately equipped with We need to find a way of revising our phenomenal transformation. People drugs. Today, patients no longer have rules and procedures of operation and have gotten back to meaningful work, to travel to towns like Eldoret to seek tailor them to focus on the public, the families have been restored and healthcare. recipients of development. We need household incomes have improved. The county government has laws that hasten development. I thank the National Authority for refurbished and equipped polytechnics Other challenges include political Campaign against Alcohol and Drug and rebranded them into Vocational competition which has killed many Abuse (NACADA) for supporting Training Centres (VTCs) to attract good intentions as politicians me in this initiative and recognising more students. We have improved sometimes mislead the public to the county’s efforts. The organisation infrastructure such as roads and oppose projects that would benefit awarded me the honourable title of opened news ones. We have revived them. Champion in the fight against alcoholism the Rimoi National Reserve that had Insecurity in some parts of the and drug abuse. Thanks to our efforts, remained dormant since 1983 when county has affected normal operations this county will get one of the several it was gazetted as a park. We built thus derailing development. rehabilitation centres that NACADA facilities and restocked it with wildlife Furthermore, we have had challenges is building across the counties. and this has seen it become an income of competition between communities earner through tourism. with some feeling left out. To address In the book , The Seven Habits of these issues, the County Assembly Highly Effective People, author Give us a highlight of the public- recently enacted the Equitable Dr. Stephen Covey talks about the private partnership initiatives that the Development Act (EDA) which habit of thinking with the end in county is currently engaged in and distributes equally development mind. How do you want people to how they fit into your agenda for the money to all our 20 wards. remember you? county. How would you compare leading When I finish my term, I want them We have a plan to establish the a County to the other leadership to look back and remember a young first Cable Car in East Africa along roles you have been involved in? man who became the first governor our breathtaking escarpments which Before I came to the county, I of this great county and started them is a very expensive venture. We worked in the private sector where off on the right footing to economic got a KSh 8 million boost from the things move very fast. Since systems prosperity. national government to do a feasibility and procedures are efficient, targets study which will also help us do an are easily achieved. In Government, Email: [email protected]

October 2016 55 Management Magazine Agriculture How to prevent disease spread in your farm Any serious and smart farmer must know of effective ways to increase their yield by managing pest and diseases in their farms.

56 October 2016 Management Magazine Agriculture

By GRACE MUREITHI the farmers understandably go for the that a certain plant is infested. It highest yielding varieties, oblivious is, therefore, important to always gribusiness is undoubtedly of the fact that most high yielders are take precautionary measures when one of the greatest businesses more susceptible to stress than the low handling your crop in order to Aanyone could ever venture yielding varieties. minimise the spread of pathogens into. Though it has its own risks It is therefore important to consider from one plant to another. One of the proven ways of and challenges, farming presents the cost associated with managing the common diseases in every particular achieving this is by controlling businesses with assured continuity crop, against the benefits of additional unnecessary movement of people especially with the surging population yields. through the farm, as farm workers and growing industrial sector. In addition, it is also wise to are responsible for fuelling most of One of the challenges that have, ensure the use of clean seeds and the catastrophic pest and disease however, quenched the hopes of other propagation materials. The outbreaks in the farm, either through many farmers is the pests and disease best assurance one can have is using their bodies or tools. infestation, whose severity increases certified seeds. But in cases where This is especially helpful in with the falling of the rains. the farmer prefers to use own seed, preventing the spread of fungal What many farmers do not know is it is important to select disease- free diseases, which can easily be that there are various ways of reducing materials and treat them before transferred from one plant to another the pest control costs as well as losses propagation where possible. through contact. associated with reduced yields. This is In cases where casual labourers especially important with the new age Break the cropping habit have to move from one farm to challenges of climate change; pesticide As sure as humans are creatures another, more so during weeding, resistance; as well as emerging diseases of habit, most farmers are more pruning or partial harvesting, it is which further complicate the practice comfortable following a set routine important to insist on a change of of keeping the harmful pathogens at in their enterprises. But this is one the overalls, boots and gloves used bay. of the harmful habits that a farmer in neighbour’s farms, as well as any Globally, more than 40 per cent of must break to realise optimum yields. tools and containers used for the yield is lost to pests and diseases. Crop rotation is not only important in operation. Alternatively, you could In Africa, most of the production managing soil fertility and structure, have them sterilised before using cost is incurred in pest and disease but it is also crucial in preventing a them in your farm. management more so in pulses, and build-up of harmful pathogens in the It is also important to avoid horticultural crops. soil. overhead irrigation method, and Effective control of pest and disease When the soil has a build-up of instead use surface or sub-surface incidence is therefore a lifeline skill harmful pathogens, the crops are more method to avoid the spread of fungal any smart farmer should keep close likely to succumb to diseases as they diseases through irrigation water. The to their heart, especially since most of attack the crops at a very young stage. damp canopies are also more prone the practices are easy to implement Tomatoes, watermelons and other to diseases as high humidity creates and are effective in controlling a wide crops susceptible to fungal diseases optimum condition for the diseases. range of pests and diseases. will, therefore, require to be rotated Manage problems, not disasters Choose your variety wisely regularly in order to yield optimally. Lastly, it is important to scout for One of simplest intervention is Destroy the reservoir pests and diseases regularly in order banking on the crop’s natural capacity Another effective practice of reducing to avoid responding to fully blown to resist or repel the harmful pests. disease incidence is destroying the host pests or diseases. Often, the harmful Whenever you are planning on the plants or any suspected carrier. pathogens are easy to control in their crops to grow for any particular In seasonal crops, it is advisable to early stages. Timely intervention is season, you will often have a number pull out and burn or bury any sick therefore critical as it helps down of varieties to choose from. Most of plant as a way of preventing spread to pesticide costs significantly. It is also other healthy crops. This is, however, useful to manage the spread of the Effective control of pest not practical in a case where a large harmful bugs to healthy crops. and disease incidence percentage of the farm is affected. As a general rule, a disease ought is therefore a lifeline It is also important to remove crop to be identified and controlled before skill any smart farmer should residues from the farm if you intend it spreads to more than five per cent of the crop. Anything above that is a keep close to their heart, to plant the same or related crop in the subsequent season. This practice disaster in the making. especially since most of disrupts the life cycle of harmful the practices are easy to pathogens, and kills any hibernating Email: implement and are effective pests. [email protected] in controlling a wide range of Grace Mureithi is an agronomist, Reduce contact a science - journalist and pests and diseases.” It is, however, not going to be obvious University lecturer

October 2016 57 Management Magazine Smart Solutions SMS KIM to 21117 [email protected] The people factor in branding Kenya Institute of Management @kimkenya Customers do not buy brand promises but experiences that span the journey of considering, acquiring and consuming products and services. There are many Diplomas and then there is uch of my time - and most of Brand discernment the KIM Professional Diploma in Management what I enjoy doing - is spent Companies have to become better Mhelping enterprises to define at delivering similar strategies and their brand promise. brand promises and to do so along the Course Title Entry Requirements Duration Fees (KES) I used to do it to inform advertising entire customer journey. Some Brand campaigns. But now my interest is in Managers know this. But, in reality, BRIDGING COURSE KCSE Mean Grade D or Equivalent 3 months 16,000 improving any organisation’s ability to most of them are only given leeway to create and communicate brand deliver on its promises. If you cannot CERTIFICATE COURSE IN • KCSE mean grade D+, with D+ in English 6 months 19,000 Per Sem express your brand promise in a way promises to customers, without the (2 Semesters - 3 Months each) that employees can easily internalise, influence over how these are fulfilled. MANAGEMENT and D+ in Mathematics/Accounting/ Total :38,000 you will struggle to build brand equity. The delivery problem is Commerce/Economics/Business Studies I am fortunate to be connected with compounded by Human Resource Professor Nader Tavassoli at London teams operating in what we call a DIPLOMA COURSE IN MANAGEMENT Business School, who is both my brand void. Unconnected with the Chairman and mentor. Nader says: promises made to the market, they This course is intended to equip the learner with a wide range of skills applicable in all areas of management universally. “Customers do not buy brand promises, can only offer “vanilla” administrative The course consists of 3 sections and a total of 18 units. at least not indefinitely. What customers support. do buy are experiences that span the Even so-called employer branding journey of considering, acquiring and projects tend to be about creating a Section I: 6 core units • KCSE mean grade C-, with C- in English and 6 months 29,500 consuming products and services that better place to work in the generic C- in Mathematics/Accounting/Commerce/ satisfy their needs and desires better sense, rather than a brand-led culture. than alternatives. These experiences A design-delivery gap which creates Economics/ Business Studies are – directly or indirectly- provided by a Cartesian-like separation of mind people. They can positively differentiate and body between what the company Section II: 4 core units and 2 • Degree/Higher Diploma from a recognized 6 months 35,000 a brand and deepen the customer thinks and what its people do. institution In the future, building brands will optional specializations relationship. Or they can miss the rd th opportunity to do so and undermine it.” increasingly be about bridging this • 3 & 4 year University Student He’s right, and his thinking on brand design-delivery gap by embedding differentiation overturns the value of the brand into daily employee Section III:6 specialization Progression from DCM II 6 months 39,000 traditional Unique Selling Proposition behaviours. Taking the employee units (USP). You see, USP’s are rare and journey from hiring, landing, short-lived for one simple reason: most developing and rewarding to exiting, organisations in a category target the and doing so in partnership between – at the expense of the ‘P’ that stands Specialization areas same customers as their competitors. marketing and HR. for people. Business Management |Human Resource Management Intake All those competitors will have We suggest that the new 4Ps Superior customer experience studied customer attitudes, goals, of branding should be People, Marketing Management | Project Management | Purchasing & Supplies Management ongoing Building strong brands will be about needs, desires and motivational People, People, and People, with Public Relations Management | Archives and Records Management | Office Management drivers with some care. And they achieving sustainable differentiation business leaders and their managers will have benchmarked each other’s by delivering similar strategies in a recognising that an external brand performance. As a result, the customer way that creates a superior customer positioning ultimately lives and dies Certificate Course In Computer Applications Duration – Five ( 5) weeks KES. 5,000 value propositions will necessarily be experience. This will be especially by the actions of employees and critical for services, which account similar. Indeed, they must be in order to representatives. compete. for over 60 per cent of the world KASNEB COURSES AVAILABLE The more functional product and economy. Brand thinking is in desperate service benefits are the ones most easily Email: chris@thebrandinside. need of catching up with this reality. OUR BRANCHES replicated. So over time they end up as co.ke Chris Harrison has 25 years The history of branding has come to hygiene factors. Brands must offer them experience of marketing and •Narok Branch - 0712 201 561 •Nakuru Branch 0712 200 916 •Nanyuki Branch 0712 201 512 •Kapsabet Branch 0712 199 853 us from consumer product markets, to be considered, but they do not form advertising in Africa. He now leads with scant attention given to B2B or •Kericho Branch 0712 201 574 •Nyahururu Branch 0712 201 583 •Meru Branch 0721 201 013 •Nyeri Branch 0712 201 088 the basis of active customer choice. Put the African operations of ‘The Brand service industries. This has led to differently, sustainable differentiation Inside’, a consultancy that changes •Kisii Branch 0712201 007 •Kisumu Branch 0712 199 843 •Embu Branch 0712 201 565 •Naivasha Branch 0712 200 934 an exaggerated focus on the 4Ps – is rarely based on design. Instead, company cultures for the better, by product, price, place and promotion •Nairobi Branch 0722 200 864 •Kabarnet Branch 0712 201 051 •Thika Branch 0712 212 914 •Machakos Branch 0712 200 768 differentiation emerges from delivery. aligning staff behaviour to business purpose •Chuka Branch 0712 200 969 •Mombasa Branch 0712 200 954 •Eldoret Branch 0712 200 805 •Kakamega Branch 0712 199925

58 October 2016 •Kitengela Branch 0790 484 647 •Utawala branch 0791 399 053 Management Magazine SMS KIM to 21117 [email protected]

Kenya Institute of Management

@kimkenya There are many Diplomas and then there is the KIM Professional Diploma in Management

Course Title Entry Requirements Duration Fees (KES) BRIDGING COURSE KCSE Mean Grade D or Equivalent 3 months 16,000

CERTIFICATE COURSE IN • KCSE mean grade D+, with D+ in English 6 months 19,000 Per Sem MANAGEMENT and D+ in Mathematics/Accounting/ (2 Semesters - 3 Months each) Total :38,000 Commerce/Economics/Business Studies DIPLOMA COURSE IN MANAGEMENT This course is intended to equip the learner with a wide range of skills applicable in all areas of management universally. The course consists of 3 sections and a total of 18 units.

Section I: 6 core units • KCSE mean grade C-, with C- in English and 6 months 29,500 C- in Mathematics/Accounting/Commerce/ Economics/ Business Studies

Section II: 4 core units and 2 • Degree/Higher Diploma from a recognized 6 months 35,000 optional specializations institution • 3rd & 4th year University Student

Section III:6 specialization Progression from DCM II 6 months 39,000 units

Certificate Course In Computer Applications Duration – Five ( 5) weeks KES. 5,000 KASNEB COURSES AVAILABLE OUR BRANCHES •Narok Branch - 0712 201 561 •Nakuru Branch 0712 200 916 •Nanyuki Branch 0712 201 512 •Kapsabet Branch 0712 199 853

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•Kitengela Branch 0790 484 647 •Utawala branch 0791 399 053 October 2016 59 Management Magazine Hands-on Management Why companies fail in strategy execution

To be a successful leader one has to want it. Leaders are charged with the burdens of an entire organisation. Leadership requires a genuine desire to be a leader.

By LIZZ WAMBUA

or organisations and businesses to survive, they need a strategic Fplan as a guide. And even though a plan outlines the things that need to be done, it is futile if is not implemented, or is poorly implemented. Companies have been known to splash whooping amounts of money in contracting consultants to write strategic plans for them. Some opt to send their senior management teams on expensive retreats in hotel boardrooms far away from their work areas in order to focus on making a strategic plan. Sadly, despite this massive spending of both cash and human resources, the plan never gets implemented. Strategy execution is the core to the whole strategic planning process and if it is not well done, the whole process becomes a big waste of money. It doesn’t matter how excellent the strategy formulated is; if there is no effort to actualise it, then it becomes another beautiful document that will gather dust in a shelf. Challenging as it may be, implementing a strategy should follow a step by step process which should be thoughtfully managed with everyone within the organisation being actively involved. The CEO and his managers should lead the process by being 1.Poor strategy actively involved. It is wrong to let a In the book Good Strategy/Bad few people within the organisation Strategy: The Difference and Why It labour alone with the process. Matters, Professor Richard Rumelt So why does strategy writes that “like a football captain implementation fail? There are several whose only advice to his teammates factors that lead to this. In this writing, is ‘let’s win,’ bad strategy covers up we will explore a few of those reasons.

60 October 2016 Management Magazine Hands-on Management its failure to guide by embracing the much money do you want to spend with the right skills to do their job language of broad goals, ambition, chasing it if there’s not that much excellently. vision, and values.” This broadness left?” This question should provoke is brought about by lack of proper every leader when thinking about 5.Poor or lack of evaluation and situation analysis. strategy. results-based accountability Both internal and external situations system of the firm must be thoroughly 3.Failure in leadership Strategy execution must be monitored assessed. Understand your business The pioneers of strategic change and if/where need be, adjustments environment well and the competition at times tend to assume that the made. Never stick to one direction involved. Analyse the gap between low-level managers and other if things are not working out right. where you are and where you want to staff members will understand Always bear in mind the need for be. Use these as your perfect guide in what is required of them. This is a having a plan B. Define parameters crafting the best strategy to keep you misconception that should be kept well and their target values, perform on top. This is because no matter how at bay if excellent performance measurements and compare them with much effort is put on implementation, is to be achieved. A leader must pre-defined standard, then make any with a poor strategy, the execution is follow up the process, guide where necessary adjustments as you keep automatically a failure. necessary, monitor progress, evaluate focus on the pre-defined target. performance and lead any change of “In order to design effective 2.Too much emphasis on financial tactic needed. measurement criteria, it’s critical that constraints A research conducted by Bridges everyone involved in the initiative — The financial staff is trained to Business Consultancy states that whether actually executing the work incur minimal costs as possible. leaders craft strategy but they do not or signing the check that pays for it — Consequently, this becomes a struggle implement it. Very few leaders free has a clear idea of what success looks in cash release whenever change is up their valuable time and resources like,” says Jenny Schade, President needed. Therefore, it is important to do justice to the implementation. of JRS Consulting, Inc. She adds that to factor the cash flow issues in the In many situations, leaders become so the implementer may have a very planning process from the start to the caught up in managing the day-to-day different idea of victory than the end so that this problem is dealt with business that they lose sight of their person ultimately responsible for the at the initial stages. goal to implement the new strategy. initiative. Consider business survival/ The results; objectives, indicators competitiveness and prosperity other 4.Resistance to change and and benchmarks, must be well than putting too much of your efforts unmotivated staff articulated. Without this, your strategy on the financial implication of the This may be due to poor will have no direction and any effort in strategy implementation. Remember communication of the strategy and the implementation will be futile. that you have to spend in order to change needed. In addition, the people gain. Do proper cost-benefit analysis entrusted with the plan, the managers 6.Lack of proper change and this will assist in cash release may misunderstand strategy or may management tactics as need unveils. Scott Berman, a not be well informed on why that Whenever change is required, people professor in Greek philosophy and particular strategy was produced. must be involved and this creates contemporary metaphysics, observed This may also be as a result of lack of resistance and probably a rift between “every so often there’s some money involvement in the planning process or among staff members. This may left and there’s a fight over the carcass. which leads to a feeling of lack of involve new leadership, change of job, But it’s a cost-benefit analysis. How ownership of the change needed. need for development of skills and Leaders must understand that competences. Like a football although they craft the strategy, they To manage this, leaders must first captain whose cannot implement without the other embrace change so as to act as role only advice to his levels down the hierarchy. Therefore models to other staff, to motivate and they must keep the staff motivated. challenge them to take the necessary teammates is ‘let’s Motivation may not be necessarily steps required for change to be win,’ bad strategy monetary (though very important). It achieved. They must also assess the covers up its failure to may come in terms of recognition for organisational culture and ensure that guide by embracing work well done and members being it’s well aligned with strategy and be the language of broad allowed to participate in the process well prepared for any uncertainty. goals, ambition, vision, of determining the firm’s future. It is and values,” Professor important for a CEO to create a good working environment and equip staff Email: [email protected] Richard.

October 2016 61 Management Magazine Hands-on Management

How effective leaders handle criticism Remain open to negative feedback to make it work for us, rather than against us.

By JOYCE KADUKI

e see the destructive results others. It is no wonder many people of criticism often enough go to great lengths to either flee from Wfor it to conjure up negative it or fight it. images in our minds. These range from Truth be told, criticism is critical emotional effects like anger, stress, for our growth. The late British Prime negative energy; to physiological and Minister, Winston Churchill, captured physical ones like indigestion, ulcers, it memorably, “Criticism may not insomnia, high blood pressure, and be agreeable, but it is necessary. It

62 October 2016 Management Magazine Hands-on Management fulfills the same function as pain in time and reflect on why the colleague Remember, not all critics are the human body. It calls attention to might have referred to you as lazy. haters. an unhealthy state of things.” Whether Follow up could help you discover a Take action. If you establish that the the unhealthy state of things being flaw you didn’t even know you had, criticism is unwarranted, ignore it and highlighted is related to our character, and enable you take steps to address move on. If it is valid and necessary, decisions or products/services, we do it which will eventually lead to your develop action steps to grow from it, ourselves a big favour by remaining growth. Glen Llopis, writing for Fast and implement the steps. open to negative feedback so we Enlist the help of an accountability partner to keep you in check so you can make it work for us, rather than Criticism may not be follow through on your resolution. against us. agreeable, but it is Hendrie Weisinger who was a writer necessary. It fulfills This may be a supportive friend and editor said that, “Criticism is the same function as pain or family member, professional information that will help you grow.” in the human body. It calls colleague, coach or mentor. It needs It is a necessary part of leadership attention to an unhealthy to be someone who cares enough for growth. The challenge is that the state of things,” Winston your growth to encourage you when feedback we receive is sometimes Churchill, The late British you need the extra push, but is also conveyed in tones and styles that are Prime Minister. candid enough to tell you the hard not gracious and can wound. How truth when you need it. then can we handle criticism (both fair and unfair) effectively, so as to grow Company in a post titled, 4 Constructive Track your progress. as leaders? How do we make it work Ways Leaders Can Handle Criticism Handling criticism well is a long-term for us? said that when faced with criticism, growth process. You won’t become Below are some practical steps one should step back and assess the effective overnight. Sometimes you we can adapt to take the sting out situation; and be patient rather than will do it well, other times you will do of criticism and use it as fuel for our reacting impulsively. Too many it poorly. Don’t beat yourself up when growth. leaders get defensive, focus more your response is wanting. Instead, on their reputation and overreact, track your growth over a period of Expect criticism rather than evaluating the situation at time, and purpose to keep learning This is part of the leadership package, hand. He goes on to say that criticism and growing. so take it with grace – and never comes and goes; and that how well personally. Leadership expert John you lead through it is what earns you Keep a sense of humour Maxwell says, “When you get kicked respect from your peers. So, take time Christine Riordan, writing for Forbes in the rear, you know you’re out in to reflect, maintain objectivity and in a post entitled, How to Deal With front,” which means that there is respond calmly. You will grow in the Really Tough Criticism: Five Steps said someone kicking you from behind. process. that executives have mentioned that Author, entrepreneur and marketer merriment can relieve the stress Seth Godin put it succinctly, “Criticism Don’t be defensive of being in a difficult high-profile comes to those who stand out.” As Maxwell says that to determine what situation. For this reason, they laugh a leader, you have followers and kind of criticism he has received, he and joke a lot. As a famous Chinese spectators. They will – not might – asks himself three questions: “Who proverb says, “Blessed are those criticize you. Therefore, train yourself criticized me? How was the criticism who laugh at themselves. They shall to expect criticism; and prepare for it. given? Why was it given?” This never cease to be entertained.” Resist evaluation process helps him – and the temptation to take yourself too Avoid knee-jerk reactions could help you – determine whether seriously and entertain yourself Given the negative association we there is even a grain of truth in the instead. give to criticism, it is easy to want to attack. For example, if the critique is Finally, when confronted with deflect it away from ourselves as soon someone you respect and admire and feedback that you find difficult to as it lands. In so doing, sometimes we one who is genuinely interested in swallow, remember, “Don’t mind cause more harm to ourselves – and your growth, speaks with kindness criticism. If it is untrue, disregard it; to others – because the reaction is not and shares the criticism for your if unfair, keep from irritation; if it is well thought out and may even be benefit, then embrace it. ignorant, smile; if it is justified it is not inappropriate. Consider, for example, As John Douglas said, “Learn criticism, learn from it.” a scenario where a colleague calls you to see the difference between - Anonymous. lazy. A natural reaction is to shoot constructive and destructive criticism. back that you are not lazy, or even Appreciate the constructive, ignore the Email: insult the colleague. A more mature destructive.” [email protected] and helpful approach would be to take

October 2016 63 Management Magazine Tactics

I mpress the customer through the 5S philosophy

The norm is to begin by sorting the work area; but this needs to be done with a mindset that it’s not an end in itself.

By SAMMY LIKHALI

t was time for my annual insurance incoming work, work in progress yet all organisations seek to impress medical check-up and I went to a or completed records. I was not their customers positively and improve Iclinic that I visit regularly. I had surprised at all to get a call late in the the bottom line. been there a few times in the past, evening asking that I present myself so I expected a non-eventful visit. again at the laboratory because the The 5S philosophy of workplace The receptionist took me through blood samples had been mixed up. organisation registration effortlessly and within a Additionally, my personal records had The benefits of building improvement few minutes got to the laboratory; then been erroneously inserted in another on foundations of workplace the process and quality flaws begun patient’s file. organisation are applicable in almost to manifest. The labels for the blood The scene above shows how small any setting; whether it is a service sample containers were all over the mishaps can cause significant quality operation, manufacturing facility table. There was no clear location for failure in a system and customer or even an office. One of the widely patient files, it was hard to distinguish dissatisfaction at the front end. And used vehicles to effect this is the 5S

64 October 2016 Management Magazine Tactics

methodology. It uses a list of five The practice of 5S find use in another area during the Japanese words: seiri, seiton, seiso, aims to ingrain, over sort stage. Every spend for 5S has to seiketsu, and shitsuke; which when time, the values of be thoroughly interrogated, because translated to English loosely mean – organisation, neatness, there most likely is a cheaper way by sort, set, shine, standardise and sustain. cleaning, standardisation use of existing material within the work The practice of 5S aims to ingrain, and discipline into a area. For example instead of painting over time, the values of organisation, workplace.” the floor to demarcate a low traffic neatness, cleaning, standardisation and area, consider using self-adhesive tape discipline into a workplace. A deeper All improvement that is desired instead. look into each S and application in to last will take time to implement different environments will help to Communicate progress and and mature. The norm is to begin by explain this philosophy. success regularly sorting the work area; but this needs A great way to do this is using the Practical hints to successful to be done with a mindset that it’s not before and after methodology; doing implementation an end in itself. The ultimate desire is to prevent unneeded items from so visually is particularly powerful. Begin the work on a small pilot area. accumulating in the area again. It then However, it needs to be absolutely This will allow for quick learnings, becomes a philosophy or way of life clear that the message communicated visible improvement and reduced to always ask hard questions before a will have a big bearing on how this impairment to the improvement foreign item is brought into the work philosophy will permeate the work journey, should there be a failure. A area. In Japan, where this originated, area. It is great to display visually how plot area should be easily accessible successful organisations integrate housekeeping has improved in the by other individuals, for example, the 5S with the other day-to-day life area; but it is even better to determine first desk near an entrance or exit to an activities in the work area. how production rate, or quality has open office complex. Additionally, the improved through 5S. It will be of great ownership of the area needs to be very Use available material and benefit to share the things that have clear – there is a specific individual stationery not worked well too, for other areas accountable for the area. There can Cost control key for any project, to learn. Ultimately, the message is: be no doubt as to who to ask when and getting benefits back quickly this is a long term initiative that will things are not moving in the desired is a condition for success. Some demand change of mind-set, a different direction. organisations go a long way in philosophy to our work. Proceed with a long term securing new racking, shelving or Email: perspective in mind quickly discarding items that may [email protected]

October 2016 65 Management Magazine Tactics

Greatness isn’t a puzzle T o attain a level of excellence and get paid more, put more hours in yourself because excellent and valuable work attract more.

BY JOSEPH NYANCHAMA

careful study of great men and that excellence at performing a A story is told of a farmer who sold women reveals that greatness is complex or any task requires a critical his piece of land and spent the rest Anot just a product of academic minimum level of practice. In fact, he of his life wandering across African studies or formal education, social said that from an emerging picture of countries searching unsuccessfully status or superior breeding. Greatness studies, ten thousand hours of practice the gleaming gem - diamond - is the discovery, development and is required to achieve the level of which fetched high prices in the refinement of unique talent or work. mastery associated with being a world- world market. Finally, with great The neurologist Daniel Levitin said class expert. despondence after failing to get any

66 October 2016 Management Magazine Tactics diamond, he threw himself into a river goal is, the road to it can be found and drowned never to be found. If you work harder on in the work you do. Unfortunately, One day, the man who had bought your job you will make the average man believes that some his land found a large unusual stone a living but if you work businesses are better than others. The which cut across his property. The harder on yourself you will reality is; there are no bad businesses, but people who do not maximize on stone turned out to be diamond of make a fortune,” Jim Rohm. enormous value. Later, he discovered opportunities for success. People who similar stones which spread become outstanding in their work throughout the entire farm. This farm seek opportunities for growth and drops out of Harvard School and was to become one of the world’s development. starts a little computer company richest diamond mines. called Microsoft with his friends. Intelligent objectivity Through brilliance and ambition, he Wisdom and patience In order to begin prospecting your builds it into the giant of the software The first farmer literally owned acres of diamond, start developing world. That is simply the broad acres of diamond which he sold out a faculty that we call ‘intelligent outline. If you dig deeper, you will at practically nothing, and started objectivity.’ Understand opportunities discover that Gates dropped out of looking for them elsewhere. If he had available in the industry where your Harvard to have more time to try his taken time to seek knowledge on how job falls. Become a student of your hand at his own software company diamond looks like in a raw state and industry and you will be amazed at that he had been programming had thoroughly explored the land the opportunities you will see. If you practically non-stop for seven he owned, he would have had the cannot see a limit in the growth of the consecutive years. How many millions he sought right at his own industry where you are, does it not teenagers in the world have the kind property. Many people stand in the make sense that there is no limit for of experience Gates had at his age? middle of precious gems. If we had the your growth? Majority of the people If there are fifty, it would stun the wisdom and patience to intelligently look at their jobs as far as they can go. world. Bill Gates put a lot of hours in seek and effectively explore what we The question every worker needs to his programming work. have, we will effectively discover that ask is whether they know their jobs Before we rush out for what we whatever we seek, either financial or as much as they know the industries perceive as greener pastures, let us otherwise can be achieved excellently where the jobs fall. know that ours are green as well. if we put in required time. You need to know that you are the There is nothing as tragic as running Let us consider Bill Gates for key to a better future. Value makes the from one thing to another in search example. A brilliant, young math whiz difference in results. We get primarily of success. No matter what your discovers computer programming, paid for value, not time. Is it possible then to become twice as valuable at the market place and make twice at the same time? Absolutely yes! How will it happen? Learn to work harder on yourself than you do on your job. Jim Rohm said,”If you work harder on your job you will make a living but if you work harder on yourself, you will make a fortune.” It is frustrating to look for above average job without taking time to develop yourself to become an above average person. So, for things to change for you, you have to change. Never wish it was easier, wish you were better and wish for more skills. Therefore, to attain a level of excellence and receive or get paid more, you must put more hours in yourself because excellent and valuable work attract more.

Email: [email protected]

October 2016 67 Management Magazine Money Matters

Kenya’s economy looks up World Bank says this year, the growth rate is expected to rise to 5.9 per cent and 6.1 per cent in 2017.

By MICHAEL WACHIRA

ne of the best news stories for during that era. But things have been Kenya in the 21st century has very different of late. Obeen it’s remarkable turnaround According to the IMF, Sub-Saharan from a decline during the second half Africa has been the second fastest of the 20th century in almost every growing region in the world (after aspect - security, democracy, health, Asia), so far for this century. With education and wealth. Underpinning rates of economic expansion well all these improvements has been an above population growth rates for economic lift-off. Until the 1990s, almost 20 years, standards of living average per capita income stagnated have been rising. This is not just or fell, widening the already big gap good for Africa but for the world and

68 October 2016 Management Magazine Money Matters particularly Kenya. Rapid growth rates healthcare has been devolved and create business opportunities for our World Bank says service delivery and performance companies and individuals. Kenyans stay without of most public health facilities has In Kenya, for example, Nairobi was power for 25 days a improved. The National Hospital recently voted Africa’s leading meeting Insurance Funds (NHIF) has enhanced and conference destination at the 2016 year on average due to outpatient and inpatient benefits in World Travel Awards. The last one year blackouts.” both public and private hospitals, has seen delegates from across the globe with members now being covered flock the city in large numbers to attend for terminal illness and other major high-profile meetings and conferences. surgeries such as heart and brain (MPC) unprecedented power to chart A number of heads of states and high procedures, as well as cancer treatment. the interest rates directions. profile personalities have been part of Kenya’s major undoing, however, In due course, Kenya’s growth these delegations. is unreliable and insufficient energy. prospects will, as has been in the First, it is unconvincing that about a past, depend a lot on innovation Infrastructure investments third of installed geothermal power similar to the iconic M-Pesa product. All projection points to a growth capacity was taken off the national The electronic payment processing trajectory. This year (2016), the growth grid in June all at once ostensibly to company Visa has embarked on rate is expected to rise to 5.9 per cent necessitate line repairs. Unsurprisingly, developing a product in Kenya and 6.1 per cent in 2017, according the World Bank says Kenyans stay that allows users to pay for goods to the World Bank. This positive without power for 25 days a year on and services directly from their outlook is predicted on the back drop average due to blackouts. The cost of bank accounts. M-Visa will allow of infrastructure investments such electricity in Kenya is high compared to customers to use mobile phones as the Standard Gauge Railway and other countries in East Africa. A recent without incurring transaction charges. Lamu Port Southern Sudan-Ethiopia study estimated that energy accounts This means that thy will by-pass Transport (LAPSSET) Corridor that for 40 per cent of the manufacturing telecommunication companies. will open the untapped Northern production cost. Sold at a rate of Nairobi is now a roaming hub after corridor. The fiscal consolidation is USD0.15 (KSh15.19) per kilo watt per setting up a Global System of Mobile expected to ease pressure on domestic hour (kWh), energy is more than twice Communication Roaming Exchange interest rate and increase credit uptake as expensive in Kenya as China’s USD (GRX), the fourth in the world. The by the private sector following interest 0.07 (KS7.09) and almost four times as facility gives Nairobi a new stature rate capping and grounding the base expensive as the USD 0.04 (KSh4.05) as an ICT hub as we await the rate of Central Bank Rate (CBR) as charged in Ethiopia and South Africa. construction of Konza city. opposed to Kenya Bank Reference Rate The high cost of electricity is bound (KBRR), which effectively shields the Improved health to put the brakes on Kenya’s effort to government’s local borrowing from industrialise. Accelerated spending on health determining the cost of credit. Secondly, and education has paid off. Today, it gives the Monetary Policy Committee Email: [email protected]

October 2016 69 Management Magazine Health

The travellers’ sickness This is the feeling you get when the motion you sense in your inner ear is different from the motion you visualise.

By LIZZ WAMBUA

onica Zawadi enjoys traveling He says the first sign is usually and getting to know new pallor (a pale appearance) which is Mplaces. Her passion for followed by yawning, restlessness adventure led her to start a tour and and a cold sweat which forms on the travel company. However, there is one upper lip or forehead. “As symptoms not-so-exciting thing that happens build, an upset stomach, fatigue or whenever she is traveling: she gets drowsiness may occur. The final uncontrollably nauseous and this stages are characterised by nausea and makes her vomit whenever she is in a vomiting,” he says. car or plane. “It is always embarrassing when this happens, especially when Mismatch of information I am traveling with new people,” Motion sickness occurs when there is she says. There are times she has had a mismatch of information from the to opt out of trips to avoid creating eyes with the brain and the vestibular unpleasant moments for her clients. system. National Health Service (UK) “It is very awkward for me to be defines the vestibular system as a nauseous, throw up and be unable to network of nerves, channels and fluids function optimally in the company of in your inner ear, which gives your clients who expect me to be at my best brain a sense of motion and balance. when I am guiding them on a tour.” Dr. Charles Davis, an emergency Zawadi is just one of the many medicine doctor defines motion victims of motion sickness. Dr. sickness as the feeling you get when Timothy Hain, a professor at the motion you sense with your Northwestern University Medical inner ear is different from the motion School defines motion sickness as the you visualise. Mixed signals come nausea, disorientation and fatigue about when your eyes can’t see the that can be induced by head motion. movement the body is feeling or

70 October 2016 Management Magazine Health when your body can’t feel the motion crackers and bread, or bananas, rice, the eyes see. This condition is rare in How to deal with motion sickness applesauce and toast. children under two years of age and Self-awareness and avoiding those Dr. Hain further notes that one can common from ages five to 12 years, things or situations that may trigger avoid motion sickness by anticipating pregnant women and older adults. the symptoms is key in prevention of the motion. Drivers have much less Though not limited to these groups of motion sickness. For example, take the motion sickness than passengers, people, motion sickness is common relevant over-the-counter medicine because they are controlling the and a normal condition. Anyone before the journey begins, don’t read motion, and know when they are can be affected if exposed to the a book or keep focus on things inside turning, starting and stopping. causative stimuli. People may acquire the vehicle, look through the window Drivers on familiar routes are less susceptibility to motion sickness and on a static object, avoid spicy foods prone to getting motion sick than these are persons with migraine, those and alcohol, smoking or sitting near drivers in new territory. with changes in their visual function, smokers. people with inner ear disturbance, According to Dr.Hain, there are How to go about it and people with rare central nervous several strategies for dealing with Over-the-counter medicines are system disorders (part of the brain that motion sickness. In the car, sit in the available and most are taken at least processes signals from the inner ear). front seat or drive. It may be helpful 30 minutes before travel begins to mentally rehearse a trip route to reduce or prevent nausea and Conflicts in sensory input to the as familiarity and anticipation is vomiting. People with prostate brain sometimes helpful. Aboard a ship, problems and glaucoma should seek The initial symptoms of motion stay toward the middle and look at the advice from their doctor before taking sickness include but not limited to: horizon. Face leeward (so if you vomit, any medicine. Besides, choose to sit stomach upset, pale skin, headache, it gets blown away from the ship, not in a well-ventilated area or next to a sweating, dizziness, increased saliva, into it). Avoid ship travel if possible. window and use of home remedies and vomiting. A young child will Stay out of small tight places where like taking ginger and acupressure become pale, restless, start yawning, you can’t see the horizon. bands though not clinically proven crying, lose appetite and begin On the airplane, ask for a window effective. vomiting. seat. The front of the plane may be Severe cases can be treated by Sy Kraft B.A. on his knowledge preferable, as it is usually less noisy. consulting a medical doctor, especially centre article, Motion Sickness Don’t sit near the bulkhead as this if the symptoms continue long after (Travel Sickness): Causes, Symptoms gives you no visual help to figure out your journey/motion. and Treatments’ writes, the overall how much you are really tilted. symptoms of motion sickness include Additionally, eat bland foods - Email: [email protected] nausea, vomiting and dizziness (vertigo). Other common signs are sweating and a general feeling of discomfort and not feeling well It is always embarrassing (malaise). Mild symptoms are when this happens especially categorized as headache, mild unease and yawning. More serious symptoms when I am traveling with new include nausea, vomiting, pallor, sweating, drooling, short breath, people,” Monica Zawadi. dizziness and drowsiness. Dr. Melissa Conrad says the cause of motion sickness is complex and not fully understood, but most experts believe that it arises due to conflicts in sensory input to the brain. The brain senses motion through different signalling pathways from the inner ear (sensing motion, acceleration, and gravity), the eyes (vision), and the deeper tissues of the body (proprioceptors). When the body moves involuntarily, for example when riding in a vehicle, there may be conflict among these different types of sensory input to the brain. The sensory apparatus in the inner ear seems to be most critical in the development of motion sickness.

October 2016 71 Management Magazine Life Goofs Three lessons I learnt after losing a job It is always a devastating moment when you lose a job. However, the experience can lead you to new levels of happiness.

By TYLER C. BEATY

ne year ago, I lost the best impact on the world by inspiring and more aligned with the man I wanted to job I have ever had. When helping others live up to their fullest be in the present moment and not the Oit happened, I didn’t know potential. Most importantly, I wouldn’t one I had become. With my family at whether to feel devastated or relieved. allow a job, or the person deciding the top, that list acts as a filter for how During the majority of my 10 years whether or not I keep that job, have so I prioritize everything else I do. there, I thought I’d found my dream much influence over my life. job. I’d put so much energy into my 3. The definitions of ‘success’ and work. The long hours and extensive 2. We often let stress manipulate ‘happiness’ aren’t necessarily travel seemed worth it, despite all of our priorities, but we ultimately synonymous. the sacrifices I made. have a choice. Like you, my parents and teachers But on the day I got laid off, I My job required me to travel always told me that I had to work realised I had begun hating my job for extensively, which meant I was hard to be successful, and only if I was longer than I allowed myself to believe. spending countless nights and several successful would I be happy. But no Lots had changed at that company in weekends away from my family. matter how hard I worked, it seemed the second half of my tenure there, Because of this, I missed out on a lot of success and happiness were always including me. I had gone from loving experiences with my son, and it put a just out of reach. my job to being unhappy, to being lot of extra parenting responsibilities Instead of finding meaning in the completely miserable. on my wife who had her career. work that I was doing, I focused Getting let go was actually the wake- A few days after I was laid off, I on getting more money and more up call I needed. It forced me to look in made a list of what was important to authority as I climbed the corporate the mirror and examine everything in me personally and professionally. I am ladder. But despite what I was able to my life. In the process, I learned these embarrassed now to admit how much achieve, it was never enough. I only three important truths about myself. importance I placed on my job, income, wanted more, thinking that happiness travel, and other professional pursuits would eventually appear. 1. The core of my identity is in that initial list. It took a few weeks I wasn’t any closer to finding separate from my employment. and several rewrites of that list before I happiness on that day I lost my job, Like many people, I derived much had a more balanced list, and one that or so I thought. Little did I know the of my identity from my job. Besides journey I would take over the next the fact that it helped me fulfill my There had to be year would lead me to new levels of responsibilities as a provider for my more to my life happiness like I’d never experienced. family, everything I felt about myself, than being thought Along the way, I have learned that my social status, and my self-worth happiness is now and that when you was intertwined with that job. Now, all of as someone who are happy in your pursuit of success, it of that was gone, no longer part of my worked hard and had a greatly increases the likelihood of your day-to-day life. On top of that, it was good career.” success. the first time in more than 25 years that Today, I am using my experience I didn’t have a job. I was completely to help others discover how to be lost. happy with what they have while they This experience forced me to think pursue all that they want in life. I may long and hard about how I wanted to have taken a detour in my pursuit be thought about by my family and of happiness, but now I have found friends. There had to be more to my life happiness in the pursuit. than being thought of as someone who worked hard and had a good career. I wanted to leave a legacy of being Tyler C. Beaty is a corporate executive a great husband, dad, and friend. I who’s changing lives as a coach, speaker, wanted to do work that had a positive and writer.

72 October 2016 Management Magazine IMPLEMENTING OPI BUSINESS

EXCELLENCE MODELModule 1 o you Dates:want Septto improve20th - 23rd your (Nairobi) organization’sModule performance 2 on the Dcritical factorsDates: thatDecember drive 6thsuccess? - 9th (Mombasa) Are you looking for a cost-effective way to gain an outsideInvestment: perspective on your organization’s strengthsKsh. 75,000 and +opportunities VAT per person/Module for improvement? Are you looking for a way Day Module Topics to energize and motivate your employees? Do you want to improve your organization’s Day 1 · Fundamental Principles of Excellence bottom line? · The OPI Business Excellence Approach The Organisational Performance Index Introduction to · Planning for Business Excellence (BE) (OPI) is the answer. This innovative Business Excellence · BE and other Productivity Improvement Programs business excellence model emphasizes (BE) · Self-Assessment: Planning & Execution · Driving, Managing and Sustainingthe relationship BE between instilling smart business processes and generating strong business results based on seven global Day 2 · Introducing and reinforcing organizational values - Executive Leadership role · Managing change and implementingdeterminants a Business and sectorial Excellence indicators. (BE) culture · Strategies for staff involvement in BE principles, management, practices and procedures Best Practices in · Integrating BE into day-to-day management activities, including meetings, decision- Leadership & makingWe and areplanning inviting Management · organizations Assessing Leadership to readinessREGISTER to BE · GeneratingNOW for strategies this great and plans OPI that reflect best practice principles and cascading the same to daily operations · business Key Performance excellence Indicators journeyin Leadership & Management

Day 3 · Aligning ICT policy as major strategic pillar to Corporate Strategy · Managing innovations from ideation to product/service launch Best Practices in TESTIMONIAL · Sustaining continual innovation in all functions/ Rewards mechanism Innovation,What others Informa- say about OPI and participating in COYA · Scope and collection of valid and high quality data “ Wetion have Management seen great & change in our strategy and now reaping · Competitive comparisons and benchmarks results.Technology Our bottom line has grown by 20% because of OPI. Each employee now knows what· to Business do. I can Research: guarantee Analysis you ofof resultsdata, trends and information - whether you· Keywin Performance COYA or not Indicators” & Computation Day 4 · Human Resource Management Planning Mr. Rakesh Rao · Staff Involvement Group CEO, Crown Paints Kenya Ltd · Performance Management Best Practices in For · more Learning, information Development on OPI and registration, Succession Planning please contact: Human Resource · Employee Welfare and Morale Index Management Tom Onguru Tel: +254 20 2445600, 0719 054188, 0700 116599 Email:· CommunicationEmail: [email protected] Website: www.kim.ac.ke · Key Performance Indicators & Computation · Experiential sharing by COYA/SMOYA 2015 Winner

11 August 2016 73 ManagementOctober Magazine 2016 Management Magazine Reviews

Movie: PERFECT MATCH, 2016 MUSIC REVIEW movies Director: Billie Woodruff

Starring: Terrence J, Cassie Ventura, Lau- age is suspected to be the main reason ren London and Paula Patton Charllie loses touch with emotions and feels less affectionate on things like accompanying the sister to visit their parent’s grave. Trusting his guts, Charllie agrees to get into a bet with his friend to just prove how immune he is in falling in love by getting into a causal relationship with the mysterious Eva. After a few months into the relationship, Charllie gets to learn of Eva’s wedding while doing a fitting at his friend’s wedding where he BY: POULINE LUMITI was to be the best man. This serves as a wrecking ball for him and he This is one of those movies that leave gets to realize the human side in you with a burning soul, especially if him. He ends up standing for the you are one of those few who grudge truth, which sees him losing his job when movies don’t take up the ending Artist: Yemi Alade and finally actualising his potential they expected. Album: King of Queens in photography by holding his first Perfect Match is a drama film starring gallery that was an absolute success. BY: POULINE LUMITI Terrence J as Charllie. Charllie’s Contrary to our expectations, character is built as that of a play boy Charllie and Eva don’t end up as the who believes he is immune to love and Yemi Alade, a Nigerian afro-pop perfect match.. love just doesn’t exist in his world. The musician, is arguably one of Africa’s Email: [email protected] rising stars currently. Young and death of his parents while at a tender energetic, this 27 year old keeps releasing hit after hit since she debuted in the music scene around 2009. Her Movie: THE MAN IN 3B music gets one hamming, singing Director: Trey Haley along or nodding and even dancing to the beat. All her songs seem to have a catchy beat to them. In the album, King Starring: Lamman Rucker, Christian of Queens, Yemi takes her creativity Lamman. He is the talk of the block Keyes, Anthony Montgomery, Robert streak to another level. The colour and the reason all the ladies in the Ri’chard, DB Woodside, Kellita Smith, schemes in the videos will have your James Black, Jackée Harry, Marla Gibbs, block are likely to get stiff necks just eyes glued yearning to see the next and Billy Dee Williams. to get a glimpse of him. But Lamman bit of creativity. The album holds 20 happened to see what Connie’s singles among them one of her hits that husband couldn’t see in her. He made brought her to the limelight; Johnny Connie see the beauty in herself again both the English and French version. in the spur of the moment when she Other hit songs such as Kissing, was torn trying to save her marriage. Tangerine, Temperature and Pose among Connie’s husband is determined to many others give their fair contribution get a divorce but when he realizes in making this album a hit. just how close his soon to be ex-wife The album accommodates lovers is getting to Lamman, he decides of varying genres, with a bit of RnB, to claim back his money and this electropop, afropop and yes there is happens to be the start of the mystery. something for the reggae lovers with A murder takes place in the Queens the ‘Why’ single incorporated in the apartment. Who is murdered? Who album. This is one of those albums is the murderer? Everyone ends up that will get you dancing, smiling and BY: POULINE LUMITI being a suspect. But a flashback at the nodding your head as you listen to it. end of the movie solves it all for us to a very happy ending. Email: [email protected] Based on a novel, the thriller movie has got a mystery. There is a new sheriff in town and this happens to be Email: [email protected]

74 October 2016 Management Magazine Reviews

Tracking your game

By STELLA ROP

lashScore is an Android application that gives Flive updates for sporting

activities happening around the BookReview Web Review Review Web world. The app covers soccer, tennis, basketball, hockey, rugby union, baseball, American football, cricket, golf, floorball, bandy, futsal, Aussie rules, darts, Joe Kadenge: The Life snooker, box, beach volleyball, volleyball, badminton, water of a Football Legend polo, table tennis, beach soccer, By STELLA ROP MMA, netball and pesäpallo. Once installed, the app sually, we wait until a public figure provides live scores, stats and competition tables of dies to read about his/her life and sporting activities. You can follow the performance of your Uachievements. In penning a biography favourite teams, get alerts when your team is about to play, of Joe Kadenge- now 81-journalist, John Nene get notified of upcoming fixtures and live updates of the has fulfilled his objective to “…honour the performance of your team. This means you don’t have to legendary Kadenge when he’s still alive…” as he keep checking the papers or asking your friends what time puts it in the Preface. It is also gratifying to read the next game will be. a biography that is professionally edited, well- FlashScore provides head to head history between researched and produced. Born Joseph Kadenge your team and their opponents, as farback as the last five in Soliani Village, Vihiga County, the boy who matches, though you can go beyond that if you wish. The was forced to drop out of school in Standard app shows the starting line-up and the position of the team Eight due to lack of school fees would come to be on the tables, before, during and after the match. In case you known by fans all over East Africa. With football can’t watch your favourite team play, the app gives live text success came career success. He was employed commentaries. at Uplands Bacon factory (now Farmer’s Choice) A new feature in the app is the ability to check the as a sales agent for their products. He tells of players’form; see who is on form and who is out of form. the joy of earning a (then) whopping KSh 1000 The application allows you to synchronise between different a month. At the time, football was played by platforms; your computer, mobile and tablet. amateurs and it was normal for most players FlashScore gives a one hour alert when your team is about to hold full-time employment elsewhere. to play, together with the starting line-up. You are also able The biography sheds light on the politics to check how the two teams have played against each other behind football during Kadenge’s time. There is in the past. During the match, you get instant alerts when a also a recurring theme of bitterness against the goal is scored and which player has scored it. government for its failure to show appreciation The downside of this application is that it does not for former football players who have brought provide live commentaries for the local Kenya Premier glory to the country through their skills. Joe League, as it does for the European and other leagues. The Kadenge: The Life of a Football Legend will definitely app also has adverts that you can’t avoid as it currently appeal to Kenyans and East Africans who were does not have a paid up version without adverts. fans of Kadenge during his heyday, as well as FlashScore is available on Google Play Store and is football fans in general who would appreciate a 17.64MB big. It loads quite fast on the most basic of history of the game in Kenya. smartphones.

Email: [email protected] Email: [email protected]

October 2016 75 Management Magazine Travel The Ngong Hills escapade

Ngong Hills comprises of seven peaks, with the fourth being the highest knuckle-shaped at 2,460 metres above sea level.

By POULINE LUMITI

e woke up in the wee hours west side slopes.Being my first time of a cold morning, ready to to climb Ngong Hills, I had a lot of Wclimb the Ngong Hills. This expectations but they did not comprise was an adventure we had been looking of challenges. I was set to conquer forward to. I made it to the pick-up the seven peaks in the ridge of Rift point and met my fellow hikers who Valley and so were my fellow hikers. would be my company for the day and It took us about three hours with few our journey began. stopovers and we arrived at the Ngong Ngong Hills comprises of seven police station where the trek was set to peaks, with the fourth being the kick-off. highest knuckle-shaped at 2,460 The weather was very chilly and this metres above sea level. The hills, made visibility beyond three metres located southwest near Nairobi, in quite impossible. After settling the southern Kenya, overlook the Nairobi required charges, we had a warm up National Park from the eastern side session and started the hike which was and the great Rift Valley from the led by an armed guide.

76 October 2016 Management Magazine Travel

few calories. In the beginning, the terrain The seventh and final hill is friendly Before embarking on this is quite flat and easy to as you proceed to the fairly flat stretch worthwhile escapade, here is a manoeuvre. It starts getting that leads you to Kona baridi which is checklist for essentials that you may a bit challenging with the the end point. We took four hours to need; complete the hike. second hill and the hike The view from the top of the hills •Drinking water becomes even tougher and is beautiful and serene, despite being •Warm clothing since it gets challenging with the third a bit cold and windy. Exhausted and quite windy and fourth hills as they are hungry, one can visit a few places •Rain coat in case really steep.” that roast meat around the area. of a downpour Additionally, there are grounds for •Sunglasses Four-hour hike those interested in outdoor games. •Hat Prior intense workouts are highly •Sunscreen At the start, the terrain is quite flat and recommended to avoid muscle •Camera easy to manoeuvre. It starts getting a aches and cramps after the hike. •Picnic food since there are bit challenging with the second hill Additionally, earlier arrangements can quite lovely sites uphill that where the hike becomes tougher. The be done with one of the restaurants can serve as very good third and fourth hills are really steep. for lunch preparation to save on picnic sites. The fourth hill happens to be a buffalo service tack time. Though we missed •Entry and guide fee prone area. Luckily, we did not come out on the view due to the weather, •National identification across any of the buffalos. The fifth hill the experience was lovely and a / passport is not as steep and is quite manageable. worthwhile adventure. A hike to The sixth hill is also steep and quite Ngong Hills is a fun way to burn some rocky, with some bushy vegetation. Email: [email protected]

October 2016 77 Management Magazine Motoring Smooth road to car ownership

Assess your needs and budget, then do a fuel consumption analysis and check the model’s maintenance costs.

By KENNETH GITONGA

uying a car is a big deal. This ask someone who has a similar car is especially true for those who model. The simplest way to identify Bare doing it the first time. I the most economical models is to remember buying my first, wanting look at cars most cab owners drive. to get the best deal; whilst aware that Maintenance cost is another important options were limited to my budget. factor. Do you need the car just for For most, it can be a daunting and town driving, or are most of your exhausting experience - the process of travels off road? Do you drive quite shuttling from one car yard to the next, frequently all around the country? probably on a hot Saturday afternoon. Answering these questions will help The very thought sounds exhausting you make the right choice. and confusing! The truth is, your car Once you have sorted out your search doesn’t have to be daunting. budget, identified what you need You just need to follow a few tried and and whittled down your wish list tested steps. to a few cars- what next? It depends on whether you would like a fairly Weigh the pros and cons new import from Japan or a car used Assess your needs and budget. You locally, in good condition. If you need to think through the reasons for intend to import a car or to purchase buying a car, what kind of car you a fresh import locally, there are a few need as well as whether you can afford things you may need to consider. In to fuel and maintain the car that you Kenya, cars are mostly imported from desire. A reasonably priced car will Japan or the UK. do well for someone who is starting out. I would go for Japanese cars that Mileage analysis are easy to maintain and fix. The more Vehicles from Japan have lower experienced car owner would do well mileage than vehicles from UK; as with a German model. Think of it this drivers in the UK tend to commute way, if you are a new driver, chances for longer distances to work; and on are that you will probably get a fender average go for more road trips than bender at some point, probably more the Japanese do. The main form of frequently than someone who has been transport in Japan is via rail; and driving for a while. The simple rule of therefore most citizens do not drive thumb is - the more expensive the car, to work. A survey conducted by the the more costly the repairs. government of UK, The National Secondly, do a fuel consumption Travel Survey showed that the most analysis for the model you are buying. dominant form of transport is the car, It would be useful to do some research with road travel constituting 78 per in this area, and the easiest way is to

78 October 2016 Management Magazine Motoring

If you’re a new driver, chances are that you will probably get a fender bender at some point; probably more frequently than someone who has been driving for a while.”

cent of all travel. The average mileage Be sure to meet the potential seller of a household car was 7,900 miles in a safe place and inform a friend of (12,713km), which is quite a lot. your whereabouts. Be sure to properly On the subject of vehicle mileage - examine the car for any defects. which is of concern to most drivers - a Check the engine and look out for any question often posed is; how much leakages. Also check the odometer; mileage would be acceptable on an and depending on what the mileage imported car? I have noted that most is, also check the mats and upholstery vehicles that come in from Japan of the car as a rough method of age have 50,000 to 60,000 of mileage. estimation i.e. if the mileage is low A fairly accurate measure to check but the seats are a bit worn, you may whether the mileage is realistic is to consider walking away. Carefully divide the quoted mileage by the age examine the body and look out for of the car, which will most probably any repairs done to the vehicle; after be eight years or less. An eight- which you may ask the owner about year-old vehicle with a mileage of its history and determine whether he/ 60,000km translates to vehicle mileage she is being truthful. Be sure to drive of 7,500km per year, which in turn the vehicle with the radio off so as to means that this vehicle travelled for listen to any noises that may suggest 144km each week; which is fairly wear or lack of proper maintenance. realistic. A vehicle with 10,000km on Look for a rough patch of road if the clock has travelled for 1,250km per possible, and drive on it to ensure that year; which translates to an average the suspension is in good condition. If of 24km travelled during the week. you like the vehicle, view it a second This would be someone who only time, this time with a mechanic or uses his/her car over the weekend. take it for valuation. This is possible but not likely. A Negotiation is an important aspect more accurate method of checking of purchasing a vehicle. Of course, the the mileage vehicles being imported aim here is to get as good a deal as is through this site: http://jevic.com/ possible; whilst remembering to think jevic-initiatives/e-certificates/. All you twice if the deal is too good. A bit of need to input is the vehicle’s chassis research is required here as well. Visit number. In regards to whom to use a few dealerships to gauge car prices. to import your car, I would advise Bear in mind that importing a vehicle you use someone who has been tried directly is always cheaper than and tested by your acquaintances buying one from a yard, although and friends as someone who is buying a vehicle from a yard is more trustworthy and who brings in quality convenient and much quicker. vehicles. Buying a car need not be a laborious and time consuming exercise. As long Buying locally as you know what you want, are not If you are buying a vehicle locally, you in a hurry and find someone reliable have the advantage of being able to to deliver; it can and should be a see the vehicle beforehand, but you breeze. still must be diligent as you do so. It goes without saying that you must Email: [email protected] examine the vehicle before buying it.

October 2016 79 Management Magazine Office Diary

heavy, so it wasn’t nearly as easy as T reat everyone with it first sounded. Nevertheless, by the end of the first day, the boy had driven 37 nails into the fence (That was one angry young man!). love and respect Gradually, over a period of weeks, the number dwindled down. Holding his temper proved to be easier than driving nails into the fence! Finally the day came when the boy didn’t lose his temper at all. He felt very proud as he told his parents about that accomplishment. “As a sign of your success,” his father responded, “you get to pull out one nail. In fact, you can do that each day that you don’t lose your temper even once.” Well, many weeks passed. Finally one day the young boy was able to report proudly that all the nails were gone. At that point, the father asked his son to walk out back with him and take one more good look at the fence. “You have done well, my son,” he said. “But I want you to notice the holes that are left. No matter what happens from now on, this fence will never be the same. Saying or doing hurtful things in anger produces the same kind of result. There will always be a scar. It won’t matter how many times you say you are sorry, or how many years pass, the scar will still be there. And a verbal wound is as bad as a physical one. People are much more valuable than an old fence. They make us smile. story is told of a little boy “Saying or doing hurtful They help us succeed. Some will even who was talented, creative, things in anger produces become friends who share our joys, handsome, and extremely A the same kind of result. and support us through bad times. bright. He was a natural leader, the There will always be a And, if they trust us, they will also kind of person everyone would want open their hearts to us. That means we on their team or project. However, scar.” need to treat everyone with love and he was also self-centered and had a a bargain with his son. He gave him respect. We need to prevent as many very bad temper. When he got angry, a bag of nails, and a big hammer. of those scars as we can.” he usually said and did very hurtful “Whenever you lose your temper,” he A most valuable lesson, don’t things. In fact, he seemed to have told the boy, “I want you to really let you think? Everyone gets angry little regard for those around him, it out. Just take a nail and drive it into occasionally, but the real test is what even friends. So, naturally, he had few the oak boards of that old fence. Hit we do with it. friends. that nail as hard as you can!” If we are wise, we will spend our As he grew up, his parents became time building bridges rather than concerned about this personality 37 nails barriers in our relationships. flaw, and pondered long and hard Of course, those weathered oak boards about what they should do. Finally, in that old fence were almost as tough Email: [email protected] the father had an idea, and he struck as iron, and the hammer was mighty

80 October 2016 Management Magazine