VOICE OF LEADERSHIP ISSUE MALAYSIAN INSTITUTE OF MANAGEMENT

managementwww.mim.org.my PQ PP/11505 (938) W. RM 10.00 E. MALAYSIA RM 12.00

DATO’ SERI NAJIB TUN RAZAK A CALL TO MARGINALISE EXTREMISM GLOBAL MOVEMENT OF MODERATES

TAKE A LEAP OF FAITH FOR A BALANCED LIFE

YOUTH: PROBLEM OR PROMISE

FRANCHISING THE WIN-WIN SYSTEM CHANGE

DATO’ ALFRED CHANG GIVING GLOBAL RETAIL A BOOST

HAS THE MOMENT LOST ITS FOCUS? 10 of Moderation The Virtues CONTENTS of Humanity of Extremism civilisation. bearing onthefutureofworld'sshared thoughts onhowchangewillhaveacrucial Prime MinisterNajibTun Razakshareshis 13 General Assembly. at the65thSessionofUnitedNations within theglobalcommunityduringhisspeech need forabalanced,peacefulexistence Prime MinisterNajibTun Razakpresentsthe 10 (based onmoderation). an economicandpoliticalforce of thefuture is Why havingasizablemiddleclasspopulation 23 moderation. the riseofextremismthroughtruthtellingand Curbing theindulgentattitudethatfacilitates 20 vital to the development of Southeast Asia as vital tothedevelopmentofSoutheast Asiaas

Moderation: The AseanMiddleClass Arresting The Growth Growth The Arresting The VirtuesofModeration The Bedrock 35 29 Promise Problem or Youth: The Dogsof(Cyber)War Right To RemainSilent one dream.’ environment andsocietyinrealising ‘oneworld and createabalancebetweenthe economy, is imperativeforChinatomanagestablegrowth world,itWith suchinsecuritiesinthemodern 35 conflict. of armed posing seriouschallengestothelegalregimes isThe unrestrainednatureofcyberwarfare 32 toviolencepursue theirmotives. are resorting is aneedtochallengethenarrativesofthosewho violent demonstrationstoexpresstheircause.There breaking All aroundtheworld,moderationisswiftly 29 withreligionandauthority.their ownhistory rather, itisthenatural progressioninthecourseof Muslimcounterparts; their moreconservative blasphemy lawsisnotsheerpetulancetowards The West’s religiouscrusadetocriminalise 26

Cry HavocandLetSlipCry Youth: ProblemorPromise Clash ofCivilisationsII:The andTheWorld down. Young to peopleareresorting China andTheWorld 48 Moment LostItsFocus? Has TheKodak

CONTENTS or Bane Companies GoingGlobal Lost ItsFocus or BuildingCitizenship? The World Economy? Preparedness forEmergencies Oriental LanguagesandCivilisations(INALCO)tick. Insights onwhatmakestheFrenchNationalInstituteof make changes. to clout enough have countries these Do for Will thecoveted gamesrakeinthemoolah watersandemergedvictorious. unchartered Several localcompanieshavesuccessfully entered management planworkedout? Do Malaysiancompanieshavearisk aroundingoodtimetosalvageitself? Can itturn The filmgianthaslostitslustreinthebusinessworld. 2016 hostsRio? BRICSCountries:CanTheySave RiskManagement:TheKeyto Rio 2016: Olympics Boon BoonOlympics 2016: Rio Success StoriesofMalaysian Has The Kodak Moment Kodak The Has Diversity With Coping 69 53 Going GlobalWithParkson For Emergencies The KeyTo Preparedness System Change 94 92 8 6 REGULARS leaders onwhatworksanddoesn't. fromtheexperienceoftopindustry Learn 88 degrees accessibleinMalaysia. Making prestigiousforeignuniversity 82 embrace changetogether. How franchiseesandfranchisorsshould 78 retail icon. the globalarenawithtoptipsfrom into business your take to how Learn 69 Editor’s Note CEO's Foreword Franchising–"Win-Win" GoingGlobalWithParkson Chairman's View Events Top 10BooksForSuccess Bringing KnowledgeCloser Nilai Spring ad.pdf 30/01/2013 16:43:58

MALAYSIAN INSTITUTE OF MANAGEMENT

HONORARY FELLOWS Royal Professor Ungku A. Aziz YABhg Tun Dr Mahathir Mohamad DYMM Sultan Azlan Shah YB Dato’ Seri Anwar Ibrahim YABhg Tun Abdullah Ahmad Badawi YAB Dato’ Seri Mohd Najib Tun Abdul Razak

COURT OF EMERITUS FELLOWS President YABhg Tun Mohd Hanif B Omar Vice President CEO’s YBhg Tan Sri Osman S. Cassim In accordance to date of admission YBhg Datuk Dr Paddy Bowie Foreword YM Tunku Tan Sri Dato’ Seri Ahmad Tunku Yahya YBhg Tan Sri Dato’ Azman Hashim Ir. George Lee Yau Lung Dr. Tarcisius Chin Nyet Leong Mr. Robert Kuok Hock Nien YAB Pehin Sri (Dr) Haji Abdul Taib bin Mahmud Prof. Liew Shou Kong A Happy 2013 to each and every one excesses of anything. Keep yourself well- YBM Tan Sri Tengku Razaleigh bin Tengku M Hamzah The Honourable Chief Justice (Rtd) Yong Pung How of you! I trust that the year has begun on rounded and divide efforts evenly among YBhg Prof. Tan Sri Dato’ Dr. Mohamed Rashdan bin Hj Baba a positive foot, and that it will bring you the many facets of your life. The more YBhg Tan Sri Kamarul Ariffin Mohamed Yassin YBhg Tan Sri Dato’ Paduka Sallehuddin Mohamed C success in every endeavour. you strive to achieve balance, the more YBhg Tan Sri Wan Azmi bin Wan Hamzah Malaysia is in the process of you will begin to respect and honour all YBhg Tan Sri Kishu Tirathai M YBhg Tan Sri Dato’ Abdul Aziz Abdul Rahman transforming its economy to meet with the aspects of your life. YBhg Tan Sri Dato (Dr) R V Navaratnam Y Mr. Niels John Madsen R, R1 demands of the receding global economy. Moderation can solve not only the CM YBhg Datuk Haji Mohd Saufi bin Hj Abdullah More often than not, we are seeing a trend problem of violent extremism but can guide YABhg Tun Dr Ahmad Sarji Abdul Hamid MY of career minded individuals who put work us through this global economic crisis. YABhg Tun Musa Hitam YBhg Tan Sri Dato’ Seri Dr Teh Hong Piow CY as their number one priority to achieve How can we adopt a moderate viewpoint YBhg Tan Sri Dato’ Dr Lin See Yan their personal goals. This has created a on an organisational perspective? A YBhg Jen (B) Tan Seri Datuk Seri Mohd Zahidi bin Hj Zainuddin CMY YAM Tunku Tan Sri Imran Ibni Almarhum Tuanku Ja’afar work-life imbalance, and we have seen a workplace which fosters tolerance and YBhg Tan Sri Dato’ Dr Mohamed Munir Abdul Majid K noticeable rise in health issues as a result understanding is key. To use an analogy YBhg Tan Sri Dato’ Sri Hassan Marican YBhg Dato’ Ng Tieh Chuan of this phenomenon. The key to combating of war – fight not fire with fire, but counter YBhg Tan Sri Dato’ Sri Tay Ah Lek this? Moderation. According to the Oxford fire with reason. YBhg Datuk Seri Haji Mohamed Iqbal Rawther YBhg Tan Sri Datuk Yong Poh Kon dictionary, it simply means “the avoidance With that, I would like to take this YBhg Prof Dato’ Wira Dr Hj Khairil Annas bin Jusoh of excess or extremes, especially in one’s opportunity to congratulate the Global YBhg Dato’ Sri Dr Ali bin Hamsa behaviour or political opinions”. Movement of Moderates for celebrating GENERAL COUNCIL 2012/2013 On a personal level, keeping a their third anniversary. What was a germ Chairman YBhg Datuk Seri Haji Mohamed Iqbal Rawther balance of your mental, emotional, of an idea has been brought to fruition physical and spiritual lifestyles increases by the vision of our Prime Minister, and I Vice Chairman YBhg Dato’ Ng Tieh Chuan your chances of good health. Embrace personally believe that its impact will not variety — having lots of things to do only be felt now, but also for many years Tan Sri RV Navaratnam Mr. Niels John Madsen, R, R1 helps divide time in a way that avoids to come. Fellows Prof. Dr. Khaliq Ahmad bin Mohd Israil

Associate Fellows Mr. Jamel Rajah bin Abdullah

Ordinary Members Dr. Nazily Mohd Noor Dato’ Jackson Tan Han Kook Tn. Hj Zulkifly Baharom Chief Executive Officer, Ms. Rita Krishnan

Malaysian Institute of Management Alice Lee ; Makeup: ROM Justin Ngiam/Studio Associate Members Mr. David Foo Mr. Mah Kong Howe

Group Members Photography: Dato’ Dr. Basant Singh Sidhu Mr. Joseph Rocky Gomez

management 6

Untitled-2 1 30/01/2013 16:52:42 ► FROM THE CORNER OFFICE◄

THE VIRTUES OF MODERATION

Dato Sri Mohd Najib Bin Tun Haji Abdul Razak addresses the 65th General Assembly at the headquarters in New York, September 27, 2010.

Prime Minister Najib Tun Razak presents the need for a balanced, peaceful existence within the global community during his speech at the 65th Session of the United Nations General Assembly.

mong the most important the willing and not one enforced by way of challenges confronting the hegemony through fear and coercion. Such international community today peace can only be achieved if we are willing that needs to be addressed to constructively engage each other through collectively,A is the challenge of ensuring a dialogue. Such discussions would help in just, equitable and durable peace. Peace creating a deeper understanding as well as not just during our time, but, peace for appreciation and respect of each other in all times. It is imperative that we have to our conviction to create a better future for all achieve peace premised upon a covenant of citizens of the world.

management 10 As a trade organisation, WTO remains law and international humanitarian law. The relevant to today’s economic climate and Malaysian Parliament feels vindicated by these Malaysia believes that the Doha Round must findings. return to its original objective of ensuring We are now waiting for the UN free, fair and equitable trade. Let us put our Investigation Panel to complete its work. We joint efforts and focus on moving the process want to see the perpetrators responsible for forward and build upon the progress and the attacks be brought to justice and adequate achievement to date. It is urgent that we compensation for the innocent victims of the conclude this as soon as possible. attacks. We want the UN to act justly and decisively, without fear or favour, in a manner COLLECTIVE ACTION REQUIRED that would ensure transgressions of blatant Since the adoption of the MDGs a decade international laws are dealt with and that ago, which galvanised the world into justice is done. collective action; there has been lack of efforts on joint endeavours towards the betterment of PROMOTING PEACE humanity. The missed opportunity at last year’s On the Middle East Peace Process, Malaysia climate change meeting in Copenhagen is a is encouraged with the recent development wake-up call for all of us. We need to bridge especially the active role by the Obama the gaps towards resolving and addressing Administration and the Quartet in seeking the issues of climate change which affects a comprehensive and lasting solution. A the lives and livelihoods of the peoples of the solution not only to the problem between world and our future generations. Palestine and , but also to the region. On June 7, 2010, the Malaysian We welcome the recent initiative by the Parliament unanimously passed a Resolution in hosting the direct peace talks condemning the brutal Israeli attack on the between Palestine and Israel. We also call on humanitarian convoy in international waters. all parties to support these initiatives and not This resolution was premised on humanitarian be detracted from these efforts to achieve the grounds and demanded that the Palestinians aspiration of creating two sovereign States be given their basic rights. This was why living side by side in peace with secure and the Members of the Malaysian Parliament, recognised borders. regardless of their political alignment, stood For this to happen, the following together in full support of this Resolution. In this prerequisites should be addressed: regard, we reaffirm today our solidarity and • First, Israel must heed the high expectations sympathy with the people of and to the of the international community to end families for their tragic loss. this long standing conflict. We call on Malaysia understood the necessity of letting the US and other members of the Quartet to the multilateral system work. We were happy to persuade Israel to end the construction of see establishment of the UN Investigation Panel new settlements in the West Bank and and the International Fact Finding Mission of the Jerusalem. Human Rights Council. We are pleased with • Second, reconciliation efforts must bear the findings of the International Fact Finding fruits. The achievement of political unity Mission of the UN Human Rights Council. The among the Palestinians is vital in report has found that the conduct of the Israeli moving the peace process forward and military and other personnel towards the flotilla the reconstruction of the Gaza Strip. passengers was not only disproportionate but • Third, both parties must eschew violence also demonstrated levels of totally unnecessary and ensure the protection of civilians and and incredible violence. This inhumane attack respect for international humanitarian and constituted grave violations of human rights human rights law.

management 11 ► FROM THE CORNER OFFICE◄

MODERATION: THE BEDROCK OF HUMANITY Prime Minister Najib Tun Razak shares his thoughts on how change will have a crucial bearing on the future of the world's shared civilisation.

ere in Malaysia, moderation has always been our chosen path. It is a testament to how we gained our independence from the British back Hin 1957; how we restored our relations with in 1965; and how we helped build ASEAN in 1967, recovered from the tragic would long ago have succumbed to epicurean events of May 1969, engaged with China pleasures and delights! Yet moderation stands in 1972, and forged the ground-breaking not just in the defence of willpower, discipline ASEAN security and economic communities and restraint but of acceptance, freedom, in 1993 and 2009. Each was a significant tolerance, compassion, justice and peace. moment for our country, and all were gained through reasoned discussion and debate. APPEASING MEDIOCRITY But over and above Malaysia’s own Being moderate is not about being weak, achievements, moderation is the fitrah, or about appeasement or about institutionalising essence, of humanity’s greatest heights; the mediocrity. And it is not about doing half- solid bedrock on which all of the world’s heartedly those things that are worthy of our civilisations have been built – for without it, we fullest measure of devotion. Far from being

management 13 21.6 X 28.1 CM

GROWING TO A PLUMP PROFIT THE COMMENDABLE RESULTS THAT WERE ACHIEVED FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2011 UNDERSCORE THE FUNDAMENTAL STRENGTHS UNDERLYING POTENTIAL OF BANK RAKYAT.

For over a decade, Bank Rakyat has achieved a year-on-year record offering sophisticated financial facilities through our nationwide growth in terms of Profit Before Tax And Zakat (PBTZ) and financial network of branches and service agents. We have shown yet again year 2011 has proven to be no exception. that we are resilient and well placed to weather global or domestic During the year under review, not only did we breach the RM2.0 challenges because we always turn all obstacles into opportunities. billion profit threshold for the first time, but this was achieved one Against this backdrop, Bank Rakyat was able to turn in a year ahead of our target set forth under the Gemilang 2012. The financial performance that surpassed the targets set forth in our overall quality of the Bank’s balance sheet continued to improve and business plan. For the year ended 31 December 2011, the Bank this was reflected in the Key Financial Indicators, such as the Return posted a Profit Before Tax and Zakat (PBTZ) of RM2.02 billion, a On Asset (ROA), Return On Shareholders Fund (ROSF), Core Capital 17.2% increase from RM1.72 billion recorded the previous year. Ratio (CCR) And Risk Weighted Capital Ratio (RWCR). We were able to breach the RM2.0 billion target for the first time Operationally, the Bank continued to consolidate its nationwide and accomplished this significant achievement a year ahead of our foot-print with the opening of new branches during the year and Gemilang 2012 target. expanding our electronic delivery channels. While we continue to It is always satisfying when our hard-work gets acknowledged. invest in technology, we also intensified our efforts during the year Our unparalleled achievement was recognised by the Asian Banker to improve on the overall customer experience. Service excellence in its Global Islamic Bank 2011 Report. Bank Rakyat was ranked provides the extra edge in the competitive business we are in which first in Malaysia based on highest profit and largest asset. live up to our vision of being ‘Your Choice Bank’. Notwithstanding To bolster the financial and banking sector in Malaysia, the Bank the success we been enjoying over the past years, we have a lot will continue to roll out elements such as healthy and ample liquidity, more to offer in upholding our vision and mission. We continue to strong balance sheet, sound capitalisation and stable asset quality. shape the Bank’s future with undiminished entrepreneurial foresight, Recently, Bank Rakyat launched its inaugural Sukuk issuance at creativity and energy to achieve our fullest potential. Bank Rakyat a signing ceremony for the issuance of Islamic Medium Term Notes therefore will continue to be the model bank that is the pride of Program (IMTN) worth RM1 billion between Bank Rakyat, CIMB all Malaysians. Investment Bank and Maybank Investment Bank. Throughout 2012, the country’s banking system and capital Bank Rakyat also posted profit before tax and zakat for the nine- market remained robust, underpinned by strong capitalisation, month period ended 30 September 2012 of RM1.62 billion, up 8.1 per increasing globalisation and firm asset quality reinforced by prudent cent over the RM1.5 billion achieved for the same period last year. risk management practices. As at end-September 2012, Risk To gain market share and meet the changing needs of a more Weighted Capital Ratio (RWCR) remained high at 15.0% whilst Core discerning clientele, we have also diversified the breadth and depth Capital Ratio (CCR) stood at 14.8% respectively, which were well of our products and services. In its mainstream banking business, above the current regulatory minimum levels as well as the higher the Bank continued to make important strides to stamp its presence requirements under Basel III. in the country’s financial landscape. Some six new branches were In the changing face of the country’s financial environment, opened at strategic locations throughout the country, bringing our Bank Rakyat is able to enhance its competitiveness through sheer total network to 140 as at December 2012. The Bank has also strength, flexibility, determination and endurance. With our vast expanded its electronic delivery channels nation-wide, more than experience and pragmatic approach in the banking industry, we 600 ATMs and CDMs nationwide. We are also reachable via Twitter have positioned ourselves as a dynamic Islamic Cooperative Bank and Facebook /myBankRakyat. m

/myBANKRAKYAT ► GLOBAL MOVEMENT OF MODERATES SPECIAL◄

ARRESTING THE GROWTH OF EXTREMISM Curbing the indulgent attitude that facilitates the rise of extremism through truth telling and moderation.

By Phar Kim Beng (Head of Research, GMMF, Malaysia)

xtremism is normally associated with cataclysmic events. Thus, they become seen after the fact. The terrorist attacks of September 11; the EGlobal Credit Crisis in 2007-2008; and the fiscal excesses of the private and public sector in the Euro Zone are some of the more well- known examples. However, within the scheme of human knowledge, which category does it fall into? Are they "known known" (things we know); "known unknown" (things we know we do not know) or "unknown unknown" (things we do not know at all), to paraphrase Donald Rumsfeld, the former US secretary of defence. Given the surprise, stealth and suddenness of the events above, they appear to fall into "unknown unknown" – things with which the world, including the intelligence and credit rating agencies, appear to be oblivious to. But, then, world famous psychoanalyst Slavoz Zizek warned that there is another category called "unknown known" (not admitting to the things we know).

management 20 It is this indulgent attitude that facilitates the rise of extremism ultimately. In a sense, unknown known is also a form of organised lying, without a clear sense of their possible negative consequences or ramifications. But do leaders, in an atmosphere of distrust among great powers especially, lie more often to each other, or, to the people they represent? John Mearsheimer, a professor of political science at University of Chicago, points to the latter. In Why Leaders Lie, Mearsheimer was amazed to discover how unusual interstate lying has been; given that outright deceit is difficult to pull off and thus rarely worth the effort. Moreover, it sometimes backfires when it does occur. Former leader of the Soviet Union, Nikita Khrushchev, lied about the size of the Soviet missile force, sparking an American build-up Franklin D. Roosevelt that led to the intensification of the Cold War. Eisenhower was caught lying about U-2 spy flights in 1960, which scuttled an upcoming summit with Khrushchev. And, Zizek pointed to the existence of Invariably, leaders are more likely to detention camps like Guantanomo, which the mislead their own publics than other states, likes of President George Bush II and President sometimes with damaging consequences. Barack Obama have conveniently ignored, Though the reasons may be noble – even as human rights values are professed. Franklin Roosevelt, for example, lied to the American people about German U-boats UNKNOWN KNOWN attacking the destroyer USS Greer in 1940, Extremism, in any form, if left unchecked, to build a case for war against Hitler – they could fall into the last category. In other can easily lead to disaster, as with the Bush words, countries and communities – under the administration's falsehoods about 's pretext of avoiding direct confrontation with weapons of mass destruction. the extremist perpetrators – see extremism But lying about extremism, or, at least, not without admitting to their threat or potency. admitting to its root causes, is just as damaging, especially in a world of globalisation. The attacks of September 11, the Global Credit Crisis, and the Euro Zone financial crisis, BUT LYING ABOUT EXTREMISM, for example, all belied some form of extremism that the countries did not admit, or, did not OR, AT LEAST, NOT ADMITTING know how to confront, even when the problems TO ITS ROOT CAUSES, IS JUST were evolving into a complex crisis. Invariably, AS DAMAGING, ESPECIALLY IN A the world careened into a global crisis. The roots of September 11, for instance, lay WORLD OF GLOBALISATION. with the Soviet invasion of in 1979,

management 21 ► GLOBAL MOVEMENT OF MODERATES SPECIAL◄

THE ASEAN MIDDLE CLASS Why having a sizable middle class population is vital to the development of Southeast Asia as an economic and political force of the future (based on moderation). By Phar Kim Beng (Head of Research, GMMF, Malaysia)

management 23 ► GLOBAL MOVEMENT OF MODERATES SPECIAL◄

he concept of the 'middle class', entire population to reach 15 per cent within although subjective and difficult the next 10 years. to define, is nevertheless often In China this figure is on the verge of looked upon with great trepidation crossing the 25 per cent threshold over the Tby the ruling authorities. This is due to the next five years by some accounts; which belief that the middle class's collective growth invariably explains why up to 35 per cent of will force the pace of political and economic China's economic growth could be attributed reforms that governments may not be ready to its own consumer affluence. to accept nor fully accommodate. Tensions The leaders in Southeast Asia cannot would result from their persistent push for ignore the importance of these developments. better representation, access and services. If ASEAN does not have a sizable middle Leaders of different political persuasions class, or for that matter a policy to foster one, in Southeast Asia may well want to re-examine then it risks the perennial marginalisation of the their position, however. This is because there is international business and financial community. no point being apprehensive about something that could otherwise be converted into the EXAGGERATED FEARS region's true strategic advantage; without Besides, the fear of the amorphous middle which further neglect of this phenomenon class is overblown. While the middle class would not wish the problem away anyway. does want more access in the political and economic system, their electoral preferences THE IMPORTANCE OF are by no means radical, as research by THE MIDDLE CLASS Pippa Norris and Ronald Ingelhardt has To begin with, the total population of shown. Their research shows that the middle Southeast Asia will grow to a massive 600 class just want to speak up, if they had not million people by 2027. If 30 per cent of been previously given the chance. this pool of people can have 'middle class' Take China, for instance. The middle consumption habits, lifestyles and values, class in China, despite its growing size, has then close to 180 million citizens in ASEAN been found to be quite stable, according to would be a magnet for further investment and research carried out by Professor Alaistair Iain trade within, and between, the countries. Johnston of Harvard University. Time and Besides, Southeast Asia is a region that again, in various surveys, they embrace what is caught between China and , two of Johnston calls 'nascent internationalism'. the world's most populous countries, with What this amounts to is a Chinese their own policy to expand the size of their middle class that is more prone to accepting own middle class too. India, for one, wants the importance of free trade, a sound the proportion of its middle class relative to the education policy, and even a foreign policy that can buttress China's position as an internationally oriented country, rather than a domineering one. THE CONCEPT OF THE 'MIDDLE THE MIDDLE CLASS INFLUENCE CLASS', ALTHOUGH SUBJECTIVE Put differently, the middle class is not a crude AND DIFFICULT TO DEFINE, IS monster that cannot be deftly handled by the respective governments. If anything, the NEVERTHELESS OFTEN LOOKED middle class would want to preserve their UPON WITH GREAT TREPIDATION BY upward mobility and trappings of success by being more moderate in their electoral and THE RULING AUTHORITIES. political preferences. Indeed, according to

management 24 ► GLOBAL MOVEMENT OF MODERATES SPECIAL◄

YOUTH: PROBLEM OR PROMISE All around the world, moderation is swiftly breaking down. Young people are resorting to violent demonstrations to express their cause. There is a need to challenge the narratives of those who are resorting to violence to pursue their motives. By Mahmud Rajaie Othman & Muhammad Abu Kadir

he youth represent the most creative, making it difficult for them to properly define dynamic, versatile and talented pool their role in society. of society. Yet, more often than not, It is a proven fact that a healthy youth they are left-out in decision-making population is the key to the sustainable Tprocesses. This has consequently made them advancement of society. We have seen more susceptible to victimisation in the job the evidence of this all too well throughout market and in political decisions as well as history. Researchers and sociologists have

management 29 ► GLOBAL MOVEMENT OF MODERATES SPECIAL◄

also acknowledged the importance of healthy as an out-group in society and will take youth development. According to a study by matters into their own hands, allowing room Population Action International (PAI), 60 out of for manipulation of the youth by irresponsible 67 countries with ‘youth bulges,’ experienced parties and increasing the likelihood of social social unrest and violence. and moral degradation. Youth need to be part and parcel of the political process. They need guidance in YOUTH AND EDUCATION understanding the structure of government. This Take education for example. The Malaysian will help young adults develop skills necessary government is currently reforming the to the understanding of issues faced by the education system by consulting teachers, community, as well as providing them with a parents, and experts in the field. However, platform to offer their innovative contributions. we have yet to hear the opinions of the youth Unfairly singled out, youth are often seen on education reform. as problematic rather than promising. The Is the school curriculum relevant? How establishment has a tendency to fear their can we curb ‘gejala ponteng’ or absenteeism irrepressible energy and enthusiasm, which in schools? How can the education system very often leaves their opinions unheard. The effectively enhance good behaviour in decision-makers tend to view youth as lacking school? What is the best way to curb in experience and their naiveté as obstructive gangsterism? These important questions can to development. Instead of looking at youth only be answered by students, the youth who as a burden, the government should view are on the frontline. Only through consultation them as an ‘un-tapped’ creative resource of with them can the government permanently the nation. address these issues. This is not to imply that the government IGNORING THE YOUTH RESULTS does not consult the youth on the topic of IN DISCONNECTION reforms, but is intended to illustrate how It is important that youth be given relevant it is to consult them in solving acknowledgement so that they may represent underlying problems of the nation, in this their own interests in all spheres. They need to case, concerning education. be the agent of their own will through active It is the failure to consult and understand the participation, instead of passive acceptance problems of the youth that contributes towards of decisions made in their absence. extremism. In the example of education What happens when youth are not above, extremism refers to moral degradation consulted in decision-making processes that that can manifest in social behaviour, that concern them? There will be a ‘disconnect’ would normally be moderated by effective between policy adoption and actual educational measures, such as gangsterism application. This ‘disconnect’ hinders a and absenteeism. country’s progress. As the generation gap widens, the youth will start seeing themselves MALAYSIAN YOUTH, THE WAY FORWARD Youth in Malaysia is defined as people aged between 15 to 40 years old. In Malaysia THE YOUTH REPRESENT THE alone, young people make up 42.2 per cent of the population. They are a significant MOST CREATIVE, DYNAMIC, constituency that the government simply VERSATILE AND TALENTED cannot ignore. POOL OF SOCIETY. Where the right to vote is given only at the age of 21, the government needs to ensure

management 30 ► GLOBAL MOVEMENT OF MODERATES SPECIAL◄

CRY HAVOC AND LET SLIP THE DOGS OF (CYBER) WAR The unrestrained nature of cyber warfare is posing serious challenges to the legal regimes of armed conflict.

By Asrul Daniel Ahmed, Research Manager at GMMF

HE SECOND FRONT When the targeted killing of Ahmed Jabari, the chief of the Hamas’ military branch, by the IsraelT Defense Forces (IDF) kick started Operation Pillar of Defense, they probably did not expect to be drawn into a war with two fronts. But while their sustained military offensive on the occupied territories saw a flurry of exchanges of hundreds of rockets and missiles that continue to rack up many casualties and injuries on the Gaza strip, both military and civilians, the second front received literally millions of attacks that, while potentially devastating, have yet to claim its first fatality. The second front, of course, refers to the war of networked aggression currently being waged against the state of Israel in cyberspace. One of the primary players in the second front is the infamous hacktivist group Anonymous. Claiming to have successfully rendered unreachable a number of prominent Israeli websites after having declared a targeted list of at least 600 URLs, the group

management 32 had reportedly been troubled by the apparent with military operations with kinetic elements, impunity with which the IDF had afflicted to i.e., physical exchanges of bullets, bombs civilians in the occupied territories, but had and other conventional means of armed particularly taken umbrage over the threat violence. But while cyber-attacks may be issued by the government of Israel to sever all borne through and methodologically limited internet and other telecommunication channels within the scope of electronic networks and going into and out of Gaza. And there has assets, their actions may translate into “real been evidence that the group has been world” and potentially tragic consequences. stepping up their attacks; rather than being The recently discovered cyber weapon limited to basic Denial of Service attacks that Stuxnet, for example, is believed to have merely prevents access to targeted websites, been designed to specifically target the as has usually been the case in the group’s industrial controlling mechanisms for Iranian previous operations. Their most recent attacks nuclear reactors. Revealed by the New include penetration of vulnerable sites that York Times to be part of a US-Israeli effort have resulted in the public exposure of tens dubbed “Operation Olympic Games,” the of thousands of private data belonging to sophisticated computer worm was part of a Israeli citizens. programme to sabotage and cripple the nuclear enrichment capabilities of and undermine DECENTRALISED… CONTROL? its progress in developing radiological Originating from a decentralised, anarchic weapons. But the unofficial confirmation and loosely-organised collective, the of the Obama administration in having a attacks by Anonymous and other similar hand in the development and deployment of means of waging cyber warfare quite Stuxnet, along with the admission that they possibly represents the stuff of nightmares had inadvertently lost control of it, has been for the promulgators and practitioners of criticised as heralding a new and dangerous the international legal framework currently arms race. governing armed conflict around the world. Besides damaging the confidence- For one thing, attacks that originate from, building measures that had been painstakingly travel through, and offensively targets built over non-proliferation talks as well as digitised electronic assets are problematic the “Internet Freedom” agenda championed when defined under the category of armed by the US State Department, the fact that conflict, as the latter is traditionally associated Stuxnet did not come with a “kill switch” has complicated matters for its progenitors as it made it comparatively easy for anyone with some programming knowledge, some LAWMAKERS AND PRACTITIONERS of whom might be afflicted with less than honourable intentions, to gain access, OF PUBLIC INTERNATIONAL LAW modify and even improve the effectiveness MUST GIVE THE UNRESTRAINED of the state-sponsored malware. Paired with the disturbingly low resource requirements of NATURE OF CYBER WARFARE THE mass producing such malicious packages of ATTENTION AND PRIORITY IT DESERVES code, the die has been cast for the playing IF THE LEGAL REGIME COVERING field to be exponentially levelled between rivals and belligerents. ARMED CONFLICTS IS GOING TO BE RELEVANT TO THE REALITIES OF THE LEGAL CHALLENGES The potential for proliferation at an 21ST CENTURY BATTLEFIELD. unprecedented scale, and the inherent lack

management 33 ► GLOBAL MOVEMENT OF MODERATES SPECIAL◄

CHINA AND THE WORLD With such insecurities in the modern world, it is imperative for China to manage stable growth and create a balance between the economy, environment and society in realising ‘one world one dream’. By Tan Sian Hoo

management 35 ► GLOBAL MOVEMENT OF MODERATES SPECIAL◄

veryone is talking about China lately. The recently concluded 18th CHINA OFFERS Party Congress has further added EVERYONE A GLIMPSE more grist to the talking mill. Now OF A MODERN, Ethat Xi Jinping has been selected as the next president, with Li Keqiang as the prime SUSTAINABLE AND minister, how will they lead China after MODERATE FUTURE. assuming power in March 2013? Given China's ever growing significance in today’s world (and of course, the Chinese Communist country), the once-in-five-years congress has attracted overwhelming attention that is comparable only to the coverage of the US presidential elections. though. The fiscal and financial crisis of the West has made them vulnerable. SHIFTING THE BALANCE With such insecurities in international OF POWER relations, leaders need to remind themselves of It is not the first time China has grabbed the the common ground that binds them all. One world’s attention too. For the past two decades, of them is the rejection of extremism; that any China has been making headlines all around attempts to revise the balance of power are the world, from unparalleled economic growth par for the course. But they must still handle it to territorial claims and military supremacy with care. that intimidate regional neighbours. China’s rise, time and again, causes anxiety and CHINA AS THE DRIVER OF nervousness to the region and the West like MODERATION never before. The crusade against extremism by propagating The concomitant rise of China has also the concept of moderation launched by the witnessed a shift in the balance of power. Malaysian Prime Minister Datuk Seri Najib Sometimes, this is consciously cultivated by Razak, is a good case in point. The idea China too. For example, in 2009, China has since been applauded by world leaders worked hand-in-hand with , South like the British Prime Minister David Cameron Africa and India to establish a new coalition and United Nations Secretary-General Ban of non-Western or independent countries. Ki Moon. This underscores Beijing's attempt to tilt the Nevertheless, the discourse of the Global balance of power in favour of not just itself but Movement of Moderates (GMM) will not work the emerging power. as a global driver unless there is a country that The emerging world, particularly China, can command the moderate majority in the has indeed been working to replace the old crusade against extremists. Not surprisingly, archaic powers. The rivalry between major together with Malaysia, China could yet be powers has also led to growing confusion an important counterpart. of where the real power lies. Is the West As the late Sinolist Lucian Pye once on top due to its hard or soft power? -- Or, remarked: "China is a civilisation pretending perhaps both. to be a nation state." Despite its seeming There is no clear answer yet, the power pretension, and the many problems attendant struggles between the world’s developed and in China, Beijing maintains a moderate emerging powers are more intensified than approach in the way it deals with its ever. The tables are turning fast for the latter, neighbours.

management 36 BRICS COUNTRIES: CAN THEY SAVE THE WORLD ECONOMY? Do these countries have enough clout to make global changes? By Shaun Orange

management 38 ► GLOBAL MOVEMENT OF MODERATES SPECIAL◄

HE grouping of emerging markets Auxilliadora Figueiredo, ’s , that comprises Brazil, Russia, India, Her Excellency Vorobyev Lyudmila Georgievna China and , known and India’s Ambassador, His Excellency Mr. as BRICS, might not be able to Vijay Gokhale. Datuk Seri Mohamed Iqbal Tsave the world economy just yet, but it has Rawther, the chairman of the Malaysian certainly enough clout to make an impact on Institute of Management, doubled up as the the global scenario. moderator of the Ambassadorial Brief. This was the consensus of the The dialogue of the three ambassadors to Malaysia from Brazil, Russia was immensely informative, well-received and India at a briefing organised by the barring odd dissent and adeptly delivered. Malaysian Institute of Management (MIM) By-and-large the statistics released on BRICS hosted at the Sunway Pyramid Convention could not be disputed, while others have yet Centre in Petaling Jaya. to be achieved. The ambassadors of China and In the main, the forum proved a definite South Africa were not present due to other success and was largely due to it getting commitments, although the latter was off on the right footing when Her Excellency represented in a lesser capacity. Lyudmila pointed out that the bloc comprised The forum, dubbed: “BRICS Countries: more than 45 per cent of the world’s Can They Save the World Economy?” population, nearly 30 per cent of all the proved a timely and interesting topic that earth and accounted for some 25 per cent of sharply brought into focus the current state of the world GDP – measured on PPP (public– the world economy and the role that the bloc private partnerships) of national currencies. of emerging nations play in it. The Russian Ambassador, who has also It also underlined the significance of held different posts in the Russian Embassy in the role that BRICS plays in it and to what and , added there were common extent this unique bloc can help to further fuel interests shared among those of BRICS. the economies of the regions that they find She said that “the desire to reform the themselves in. outdated financial and economic architecture of the world, which ignores the growing GOOD FORECAST AHEAD influence of BRICS,” was one such challenge. There is no denying that the BRICS countries Another was “the common commitment have been enjoying healthy economic to principles and norms of international growth – a situation that was forecast at the law, rejection of policies or armed pressure Ambassadorial Brief to continue for some and infringement upon sovereignty of other time to come – despite the rather negative nations.” press from the Western media. The Russian Ambassador added that The forum had in attendance the “there were numerous common challenges Ambassador of Brazil, Her Excellency Maria and problems related to the needs of modernisation of the economies and social life of BRICS which were equally important,” BRICS, MIGHT NOT BE ABLE TO SAVE as were a wide range of sectors of national economies. THE WORLD ECONOMY JUST YET, BUT “For the Russian Federation, cooperation IT HAS CERTAINLY ENOUGH CLOUT TO among BRICS is a key long-term foreign policy priority. We welcome the step-by- MAKE AN IMPACT ON THE GLOBAL step transformation of cooperation into a SCENARIO. multilateral strategic partnership embracing

management 39 ► GLOBAL MOVEMENT OF MODERATES SPECIAL◄

In her presentation to the forum, entitled: “Brazil in the Brics: A Point of View,” Figueiredo touched on the grave economic situation of the and the slow recovery in the United States, before adding that the pace of world economic growth increasingly depended on the performance of BRICS and emerging nations in general. She drew attention to the International Monterey Fund’s (IMF) January 2012 forecast of the five BRICS bloc contributing 56 per Dr Nazly Mohd Noor, CEO, MIM; H.E. Vijay Gokhale, High Commissioner of India; YBhg Datuk Seri Mohd Iqbal Rawther, Chairman, MIM; H.E. Vorobyeva cent of the world’s GDP growth this year Georgivena, Ambassador of the Russian Federation; H.E. Maria Auxiliadora and mentioned that of the G-7, which was Figueredo, Ambassador of the Federative Republic of Brazil; YBhg Tan Sri Dr pegged at 8 per cent and Latin America at Michael Yeoh, Executive Advisor, Performance Management Transformation Leadership Centre (PMTLC). 9.5 per cent. The veteran diplomat added that despite BRICS’ contribution to the world’s GDP being “quite important this year, it was hardly enough to save the world economy.” Further still, the Brazilian Ambassador said: “It can be verified, therefore, that in the economical sphere, BRICS has been acting towards the reform of the international finance institutions, trying to make them proportional to the weight of the group countries, but also in a manner to favour the interests of other developing and emerging countries. “In the political sphere, there has been a broadening of the dialogue in themes such as the reform of the United Nations, to YBhg Datuk Seri Mohd Iqbal Rawther, Chairman, which everybody agrees, and of its Security MIM, delivering the welcome address Council, quite a difficult subject.” Figueiredo stressed that BRICS was “not a bloc formed against the interests of other far-ranging issues of the global economy countries nor was it a coalition established to and politics. discuss world governance. “As a group, BRICS members have “But rather, it is an association of already gained invaluable experience countries that represent almost half the in coordinating their actions on major world’s population and an increasing part of international issues,” she added. the world economy – one which understands “The progress that has been achieved its responsibility in the construction of a new by this young group at such an early stage international world order.” shows that BRICS has become increasingly She added: “We are together (as BRICS) important in defining world development in because we want – we need – in the current the 21st century.” disorder, to find a new world order based on On whether or not BRICS can save the effective . world economy, Georgievna added: “We “To become an influential economic will have to see, but the chances are there.” and political entity is certainly one of our

management 40 ► GLOBAL MOVEMENT OF MODERATES SPECIAL◄

COPING WITH DIVERSITY OR BUILDING CITIZENSHIP?

In a vivid and most enlightening manner, participants at a Global Moderation Roundtable Lecture in Kuala Lumpur were treated to the insights of what makes the French National Institute of Oriental Languages and Civilisations (INALCO) tick.

By Shaun Orange

management 43 ► GLOBAL MOVEMENT OF MODERATES SPECIAL◄

rofessor Marie-Sybille de Vienne, dialectal Arabic who come from poor and/ the Director of the International or uneducated families of the “banlieues” Studies Centre and Director of (suburbs). Twenty-five per cent come from the South Asia and Southeast Asia elite of , , , , PCentre of INALCO, was the guest speaker and , while the remaining 15 at a conference co-organised by the per cent are from the French middle class. Global Movement of Moderate Foundation Illuminating the point, Prof de Vienne (GMMF) and the Embassy of , said that HRH Princess Maria-Laura of and delved into "Coping with Diversity or studies Chinese at INALCO. Building Citizenship? Some remarks beyond “Another aspect of this social diversity INALCO experiment". is the educational background,” she said. It was a timely event, in that the GMMF “What is very specific to INALCO is that foundation was established by Malaysian nearly half of our students are already Prime Minister Najib Razak just a year prior graduates from other universities. to it and it highlighted the goal to promote “In Southeast Asian Studies, more than the concept of moderation and the rejection 60 per cent of our students are graduates. of extremism, something advocated by the At the beginning of the academic year, you GMMF. To this end, Professor de Vienne never know whom you may find in your said it was a primary challenge of INALCO class,” added Professor de Vienne. “And too, to face social diversity among its once you know, you have to adapt.” academics, among its staff, as well as among the students themselves. THE CHALLENGES OF She gave the example of some 60 MULTICULTURALISM per cent of their students in standard and Multiculturalism, too, was a huge challenge INALCO faced over the years and remains one to this day. Professor de Vienne stressed the point by explaining that a single building hosts the biggest faculties of both Arabic and Hebrew studies in France. She added that Kurdish is taught alongside Turkish and Tibetan next-door to Mandarin and so on. “Perhaps, to sum it up best,” she said, “is maybe to say that INALCO is both the UN (United Nations) and the UNPO (Unrepresented Nations and Peoples Organisation) rolled into one. “With some 10,000 students of various nationalities, standards of living, ideologies and more than one opposite political affiliation, conflict could explode at any time inside our walls. To circumvent any such development,” said Professor de Vienne, “we endeavour to enforce a citizenship that goes far beyond identity. Professor Marie-Sybille de Vienne “Indeed, to prevent conflicts, we ask our students to sign a yearly contract

management 44 The signing of the MoU. From left: The French Ambassador to Malaysia, Martine Dorance, Prof de Vienne, GMMF CEO, Khalek Awang and GMMF Chairman Tan Sri Razali Ismail.

whereby they are committed to following of civilisations but the diversity of cultures. the rules specific to INALCO – respecting Turning to the institute itself, she said there others however different they might be were some 400 academics and 312 visiting and avoiding any ideological, political or professors who teach 93 languages and religious controversies inside the institute. their “civilisations” which, in short, embrace “The secular legal and institutional social sciences such as history, history of art, environment prevailing in France helps a lot sociology, law, geography, ethnology, as – without being a panacea indeed.” well as economics, international relations, Professor de Vienne said they recognise and management to around 10,000 that knowledge of different cultures helps students from 114 different countries. apprehending one’s own as well as Professor de Vienne said so far as scientific mastering intellectual tools that allow a research goes at INALCO, there were 14 critical and scientific approach of the research units and some 100 workshops outside world.” and international conferences held a year. Essentially, she noted, INALCO was Further still, it has the biggest scientific library a laboratory to experiment not the clash anywhere, the ‘BULAC’, which is dedicated to non-Western cultures in Europe. It has 1.5 million books, manuscripts and documents written in 350 different languages – more than 51,000 books on the Arab world, 54,000 AT THE BEGINNING OF THE books on Iran, 5,000 books on the Malay ACADEMIC YEAR, YOU NEVER World and 32,000 books on China.

KNOW WHOM YOU MAY FIND Among the Alumni of INALCO are: IN YOUR CLASS AND ONCE YOU • HRH Prince Henrik of , husband of HM Queen Margarethe II KNOW, YOU HAVE TO ADAPT. (Chinese and Vietnamese)

management 45 ► STRATEGY & OPERATIONS◄

HAS THE KODAK MOMENT LOST ITS FOCUS? The film giant has lost its lustre in the business world. Can it turn around in good time to salvage itself from doom? By Fanny Bucheli

he Eastman Kodak Company, known the world over for its yellow square trade dress with the graphic red “K” element, is in the Tfinancial dungeon. This undisputed pioneer in amateur and professional photography and cinematography for well over a century seems to have been overrun by recent technological progress. How could this have happened? A mere couple of years ago, out of a small office in San Francisco's South Park neighbourhood, 13 engineers set out to build a photo related app. In August 2012, Facebook buys Instagram, along with the access to its 100 million users, for USD1 billion; Zuckerberg's social network's largest acquisition to date. This was a start-up gone right, a modern day rags-to-riches story of the fast paced cyber industry. How different would the future of the hugely troubled Kodak conglomerate look, if only they had thought of that? As Michael Hawley, formerly of MIT's Media Lab and on Kodak's Board of Directors puts it, “It all comes down to company culture”. Big corporations with a long history of success in one particular sector need to keep producing what they are best known for, what their customers expect

management 48 of them. Most won't dare stop to look around and the Kodak company is firmly set on the and thus fail to recognise the potential in fast track to success. emerging technologies. New inventions and technologies in the film and photography industry follow one A BIT OF HISTORY another in close succession – all made possible If we allow ourselves to travel back in time to by 's fast growing Kodak the late 1880's, we will find a very similar start- company. Thomas Edison's motion picture up, rags-to-riches success story, unfolding. camera is invented based on Kodak flexible A young high school drop-out, George film in 1889; two years later cameras can be Eastman, supports his widowed mother and reloaded outside a dark room. By the turn of the two elder sisters on a meagre bank clerk century, X-rays are printed on Eastman paper salary of USD15 per week. He dreams of and the first of the famous “” cameras, a holiday in Santo Domingo when a friend sold for USD1, makes photography accessible suggests that he record his travels. Eastman to virtually anybody in America. Within the next himself would later relate that it would have 30 years, Kodak is the driving force behind just taken a “pack-horse load” of material, about any and all the major accomplishments including several water canisters, chemicals of its industry; professional and amateur motion and even a tent, in order to photographically picture, colour movies and sound included. document his voyage. As the twentieth century advances, brands He never takes the trip down South. such as , and Instead he stays in his native Rochester N.Y. continue to play an extensive and, at his mother's kitchen table, invents role in the fast progress of photography, photographic dry plates which will make cinematography, pre-press production, image photography much less cumbersome and projection and even in the war effort of both expensive. Within 10 years, by 1888, WW I and II. Eastman has invented, perfected and patented said plates, a camera to use them with and a REVOLUTIONARY production line to manufacture both, all mass- BUSINESS MODEL produced locally and cost-effectively. The Eastman Kodak Corporation is built on The young entrepreneur soon coins the four basic principles: slogan, “You press the button, we do the  Mass production at low cost; rest”, and so opens up photography to the  International distribution; world. Leisurely snapshots rapidly advance to  Extensive advertising; become one of America's favourite pastimes  A focus on the customer.

Eastman's dream to provide affordable equipment to the greatest possible number EASTMAN'S DREAM TO PROVIDE of people fuels not only the growth of his company, but its necessity for ingenious AFFORDABLE EQUIPMENT TO THE new production technologies. By 1896, the GREATEST POSSIBLE NUMBER OF 100,000th Kodak camera is produced and an PEOPLE FUELS NOT ONLY THE average of 400 miles worth of photographic paper is manufactured monthly. GROWTH OF HIS COMPANY, BUT ITS By the early 1900s, the company runs NECESSITY FOR INGENIOUS NEW production plants and distribution outlets in the UK, France, , as well as , PRODUCTION TECHNOLOGIES. and .

management 49 ► STRATEGY & OPERATIONS◄

insurance, disability benefits and a Wage Dividend programme. After the founding father's passing, a long succession of presidents and chairmen of the board leads the Eastman Kodak Company, dutifully following George Eastman's vision, constantly expanding, and relentlessly innovating. In the early 1960s, Eastman Kodak's consolidated sales in the USA exceed USD1 billion and its worldwide work force reaches over 75,000 well- respected employees. Businessmen as well as students of the post war era will fondly remember Kodak inventions such as the Carousel , the camera with its easy to load film cartridge, and later the Instamatic pocket sized camera with four flash functions. The seventies, sound home movies are introduced. Proud parents are now able to record their progeny's accomplishments with super 8 sound movie cameras, conveniently loaded with cartridges. Employment at Eastman Kodak surpasses 120,000 worldwide.

THE KODAK MOMENT George Eastman. 1975 may well have been the most pivotal year for George Eastman's company. The Kodak R&D team turns up a revolutionary new technology. The world's first digital camera is Furthermore, the corporation's principles the size of a toaster and captures black and are supported by three avant-gardist policies: white images. But Kodak's upper echelons fail  Foster growth and development through to realise the potential of this new invention. Or continuing research; rather, its prospects are too big a threat for the  Treat employees in a fair, self-respecting company's century old 'razor-blade' business way; model. Eastman Kodak's core business being  Re-invest profits to build and extend the the manufacturing of photographic film, the business. company relies vastly on the distribution of cheap cameras to make a huge profit on George Eastman, who died in 1932, the consumables. A digital future, where had set the course for his company to be film is no longer needed, is inconceivable. continually innovative, to be a forerunner Consequently, the digital technology is buried in any of its endeavours. Eastman was the somewhere in the Rochester lab for the next first American entrepreneur to hire a full- 20 years. time research scientist, and he was the first For the next 40 years, America's industrial industrialist to offer his employees benefits flagship keeps generating evolutionary like accident and pension funds, life improvements in existing technologies as well

management 50 as technical advancements and refinements, urbanite as a city dweller between 17 and 44 amassing a staggering 1100 patents along years of age and time-poor, city-proud, media- the way. While such a quantity of ideas literate, brand-centric, trend-sensitive and and concepts should be enough to carry culturally-aware) expects a technologically the company safely into the 21st century sensitive gadget to cover more than one and beyond, most of them reinforce a function. A smartphone is a camera, a phone, vision of a firmly analogue future rather than a watch, a communication avenue and a addressing an impending and dynamic never-ending source of information, all neatly digital offensive. packed into one single device. Therefore a As Harvard professor and businessman traditional manufacturer needs to establish Clayton Christensen suggests in his bestseller himself in a very specific niche either as a The Innovator's Dilemma: When New supplier of highly advanced professional Technologies Cause Great Firms to Fail, equipment, like Hasselblad or Leica, or as a companies looking back on decades of greatly coveted uber-luxurious and trend-setting success in their core business persuade brand like some top end watch makers. Kodak themselves of their customers recurrent need does neither. for tried and tested products. They often fail In the pre-digital age, Kodak had firm to embrace new technologies, also known as control over all the steps involved in picture 'disruptive innovations', which will meet the capture, image processing and printing. It market's future needs. is even rumoured that the Eastman Kodak company kept its own cattle herds, the DOWNWARD SPIN bovine bones being needed to manufacture The Kodak leadership of the 1990s clearly the photographic gelatine. In the post-digital misreads the signs of the imaging and landscape however, Kodak is left with very communication future. Being the uncontested little control, as it does not have assets in the number one in its field for nearly a century may digital software business, home scanners or well have fostered a lack of imagination and online services. Storage devices such as hard resulted in a somewhat complacent corporate disks and memory sticks as well as online culture. Ultimately, Kodak dangerously transmission and propagation of images also underestimates its main rivals such as Fuji, eludes Kodak's grip. In a bid to catch up, Sony, Nikon, Canon and eventually Apple. the company finds itself trying to do a bit of Unlike its competitors, Kodak fails to everything without a long-term strategy, goal recognise that today, the imaging and or commitment. communication landscapes are tightly Kodak does jump on the digital interlaced and youth driven. Today's urbanite bandwagon in 2001 with the launch of its consumer (the online dictionary defines an EasyShare range of digital cameras. After wide spread customer behaviour studies and market analysis, the company determines that women are the real number one target IN THE POST-DIGITAL LANDSCAPE, market for digital snapshot photography. The HOWEVER, KODAK IS LEFT WITH ladies' lack of tech savvy, however, frustrates their effort to transfer photos to a PC, a highly VERY LITTLE CONTROL, AS IT DOES tedious process in the early days. EasyShare NOT HAVE ASSETS IN THE DIGITAL proves a stroke of genius, its docking station SOFTWARE BUSINESS, HOME making it child's play to transfer and print photos at home. Within four years, Kodak is SCANNERS OR ONLINE SERVICES. back at the top of US digital camera sales.

management 51 ► STRATEGY & OPERATIONS◄

A BLURRED PICTURE changes, specifically for Chief Executive This goes to show that a head start in the Antonio Perez and Chief Financial Officer digital race could have been just the ticket Antoinette P. McCorvey to resign. for Kodak. But by 2006, Kodak is caught in Can George Eastman's dream, “To make such a whirlwind of sales and acquisitions of the camera as convenient as the pencil,” still businesses they don't really understand nor be saved? What would the digital equivalent have control over, that EasyShare alone can't to the camera be – or to the pencil for that save the day. The only foreseeable path leads matter? Well, if someone knows, please feel down. Down from EK shares being traded free to apply for employment at 343 State at USD94.75 in 1997 to an embarrassing Street, Rochester, New York. USD6 ten years later. The endless flow of However, it begs to be said that, back in corporate heads, exchanged at an ever-faster 1880, when George Eastman acquired his pace, robs the long-established structure of first engine, he remarked that the appliance much needed stability. was too big for his immediate needs. “I thought In January, 2012, finally, like the perhaps business would grow up to it. It was chronicle of a death foretold, Eastman Kodak worth a chance, so I took it.” Of course, as a Company files for Chapter 11 bankruptcy tiny start-up, he had nothing to lose if his idea protection and is granted USD950 million went nowhere, and everything to gain if it credit from Citigroup. The formerly grand worked out. He showed remarkable foresight chemical conglomerate has until February though. He knew that a dynamic company, no 2013 to produce a reorganisation plan and matter its size, needs to re-invent and better its turn the company's fate around. No easy product incessantly. No one can rest on their task, considering that on September 10th laurels without being left behind. It is true for this year, The Wall Street Journal reports that: any industry; the moment you stop trying, you “Cash held by Kodak's U.S. operations fell die. A new management with the courage to by USD72 million in July, the most recent exhibit more of George Eastman's qualities figure available, compared with a cash burn might be able to create a Kodak moment of USD64 million in June and USD43 million once again. After all, they too, have hardly in May. Creditors called for management anything to lose at this point. m

management 52 ► STRATEGY & OPERATIONS◄

RISK MANAGEMENT: THE KEY TO PREPAREDNESS FOR EMERGENCIES Do Malaysian companies have a risk management plan worked out?

By Dr Rajendran Muthuveloo

management 53 ► STRATEGY & OPERATIONS◄

he Prime Minister of Malaysia, on (either man-made or due to the forces of Thursday June 10, 2010 launched nature). This article presents some of the the 10th Malaysian Plan to propel findings from on-going research in the area the country towards becoming a of risk management from an organisational Thigh-income and high-productivity economy. standpoint to support the above mentioned He mentioned that the gross national income thrust especially in creating a conducive per capita must increase to RM38,850 environment for unleashing economic growth (USD12,140) by 2015 via real GDP and building an environment that enhances growth of six per cent per annum. The five the quality of life. strategic thrusts of the 10th Malaysian Plan are designing government philosophy and HIGH PRIORITY VALUES approach to transform Malaysia through THREATENED the National Key Result Areas (NKRA), Risk management plans can be defined developing and retaining a First World as the preparedness for an emergency. talent base, moving towards inclusive socio- An emergency is an unforeseen crisis that economic development, creating a conducive usually involves danger or any abnormal environment for unleashing economic growth, condition that requires immediate manual or and building an environment that enhances automatic action to prevent loss of human the quality of life. lives, production, business opportunities or To ensure that these national aspirations tarnishing the reputation of an organisation. are achieved as planned, Malaysian We use the term ‘emergency’ for an organisations should be prepared in planning unexpected or unanticipated event or for and responding to any form of emergency disaster caused by either man or nature, which presents a restricted time available for decision making and threatens high priority values of the organisation’s goals. Emergencies usually occur suddenly, demand quick reaction, interfere with organisational performance, create uncertainty and stress, threaten the reputation and assets of the organisation, escalate in intensity and could permanently alter the organisation. On September 11, 2001, as reported in the Disaster Recovery Journal (2004), close to 20 per cent of companies surveyed in the study in North America did not have any formally documented risk management plan. By mid-September 2002, 66 per cent of companies studied, increased overall organisational commitment and efforts in planning for emergencies. Post 9/11, 36 per cent of companies increased resources devoted to emergency response; 53 per cent reported a modest increase. Only nine per cent said that there was no change in the organisation’s view of emergency response after the incident.

management 54 ► ENTREPRENEURSHIP◄

SUCCESS STORIES OF MALAYSIAN COMPANIES GOING GLOBAL Several companies have successfully entered unchartered waters and emerged victorious. By Munis Krishna

management 58 t is the dream of every small business to CAREFOOD INDUSTRIES go global. However, with a volatile and SDN. BHD. rapidly evolving global economy, many Carefood Industries Sdn. Bhd., established in small and medium businesses with limited 1989, produces Western as well as Asian Iresources fear it is a daunting and uphill task sauces such as Malay, Indian, Chinese, to penetrate international markets. Nyonya, Indonesian, Singaporean and The good news is that the global market Japanese sauces for household and the Food opens windows of immense opportunities & Beverage industry use. Certified HACCP for Asian companies, including Malaysian and Halal, Carefood Industries’s mission is to companies, to build a global presence in capture the rich flavours of Asian sauces and markets seeking products with competitive share it with the world. quality and pricing. Here are some companies Carefood Industries had challenges that have successfully entered unchartered initially due to its inexperience with product waters and emerged victorious in their pursuit storage and shelf life, but it worked with of a bigger market share. MARDI and SIRIM to find solutions by investing in Research & Development (R&D). AVIALITE SDN. BHD. Eventually, with its commitment to continual Avialite Sdn. Bhd. manufactures waterproof improvement and R&D, the company had a aviation obstruction beacons or lights breakthrough that enabled it to diversify its installed in many local and international products from three to nine products with telecommunication (telco) structures. Avialite more than 200 recipes. Plans are also in LED Aviation Warning Light’s uniqueness lies the pipeline to launch new products such in its ability to withstand the wet, hot, humid as sauces with soup and dry mix noodles, conditions that is the norm in tropical weather. and ready to serve Malaysian dishes in the The lights, which are also dust and moisture United States market. proof, are manufactured in compliance with ISO9001:2008 and ROHS requirements. CENTIUM SOFTWARE SDN. BHD. A significant milestone for Avialite Centium Software is a one-stop healthcare was its participation in the Green Device and call centre solutions development 2010 Expo in Japan, as it was the first and consultation software house. Since its Malaysian company fully sponsored by the incorporation in 1998, it has supported JETRO (Japan External Trade Organisation) local and international clients in Indonesia, to participate in this expo. Participating India and , filling the gaps in in MATRADE’s activities contributed to 80 healthcare software to provide a complete, per cent of Avialite’s total sales. Its foray reliable, scalable platform that is agile into , , , UAE, enough to fulfil the needs of small as well as Indonesia, , Vietnam and West large corporations. Africa further strengthened its presence as a Centium Software expanded into healthcare reputable manufacturer and supplier of heavy ERP with the Centium Blood Bank Information duty LED Aviation Warning lights. System after it secured a software development and consulting job for a healthcare centre in India. Forming a joint venture with an international group of hospitals in South East Asia, Centium IT IS THE DREAM OF Software developed a product known as EVERY SMALL BUSINESS Centium HIS (Hospital Information System), which is presently in use in more than 15 hospitals in TO GO GLOBAL. South East Asia. Centium Software was awarded

management 59 ► STRATEGY & OPERATIONS◄

RIO 2016: OLYMPICS BOON OR BANE

Maracana Stadium, Rio de Janeiro

Read how Brazil is gearing up for one of the biggest sporting events of the planet and the global spectators’ concerns on Rio’s readiness to host Olympics 2016. By Kalpana D. Subramaniam

management 63 ► STRATEGY & OPERATIONS◄

s Rio de Janeiro received the the ongoing growth of Brazil’s economy. The Olympics flag at the Closing Rio 2016 Games will also provide a long Ceremony of London 2012, term boost to the tourism industry and Rio and became the official city of will be broadcasted showing superb games AOlympics 2016, the planet’s attention shifted and stunning imageries by the global media to the next host of the 31st Summer Olympic which supports Brazil’s growing image as a Games, Olympics 2016 and the 15th good place to visit, do business and live. Paralympics Games; Rio De Janeiro, Brazil. Rio will also serve as a powerful platform The announcement of Brazil being for the Olympic and Paralympic Movement, chosen as the host for the 2016 Summer to deliver a celebration of sports, one that Olympics games was made by the Olympics will touch the hearts of the young, 18 years International Committee (IOC) after a and below, of South America, who are in lengthy and intensive bidding process, dire need of motivation and inspiration; 65 with the election of Rio De Janeiro as the million in Brazil and 180 million throughout host city, during the 121st IOC session, South America. held in Copenhagen, Denmark on October On the other hand, Rio 2016 will have an 2, 2009. Brazil beat three other cities; opportunity to deliver the broader aspiration Chicago, Madrid and Tokyo, to be chosen for the long term future of the city, region as the host of Olympics 2016. and country, an opportunity to speed-up the After three failed attempts to host the transformation of Rio de Janeiro into an even Summer Games; in 1936, 2004 and 2012, greater city. Rio de Janeiro had to commit to an ambitious In order to meet its objective to create a array of social and redevelopment plans to celebration and a transformation through Rio win the bid for the 2016 Games. Brazil has 2016, the Rio 2016 Business Council has committed to investing heavily in upgrading identified five key areas: its public transportation systems, improve i) Engaging young people water sanitation, electricity, gas and telecom ii) Social Transformation through Sports infrastructure network, build a 5 million iii) Regional Outreach square meters of Class A office and retail iv) Global Promotion and redeveloping under-utilized areas like v) Successful delivery Porto Maravilha (the old port) with “Olympic Urban Parks” and iconic architecture. BRAZIL’S PLAN The Olympic and Paralympic Games The Rio de Jameiro Games are being taglined 2016 will bring long lasting benefits to Brazil. – “A City Leaps Forward”. Rio will make full use of its city’s natural beauty, The stunning Brazil 2016 Olympics Park diversity and energy to unite the Olympic and will be built on the former Grand Prix track in Paralympic spirit of sports with Rio’s spirit a striking triangular layout spread over 300 of celebration to bring about a celebration acres. This British designer inspired beauty which extends beyond venues to communities will stretch out into the still blue lagoon water in Brazil and the global media audience. and will be set against a backdrop of rugged As for the people of Rio, the Olympics mountains. It will play host to15 Olympic offers the 2016 posts' opportunity to sports and 11 Paralympics competitions transform their city with new infrastructure, in 34 venues of which 18 are already in new environment, physical and social operation. It will also host a media centre initiatives, worldwide recognition for Rio to accommodate 20,000 journalists. The and new benefits and opportunities for all; Olympic stadium however, is not located in where Rio 2016 Games will help continue the park, unlike the London Games. Instead,

management 64 The sugar Loaf is a green, unearthly peak rising over Rio De Janerio.

the athletes will use the famous Brazil Chief Executive of the Rio 2016 organising stadium, the Maracana, which will also be committee for the Olympic and Paralympic the site for both the Opening and Closing games. The Paralympic project is a very Ceremonies as well as the Joco Havelenge special one for Rio de Janeiro. The journey to Stadium – home to the club Botafogo. Paralympics 2016 started in 1990 for Brazil The games will be staged in four when it bid for the 2007 Pan American areas: Copacabana, Barra, Deodoro and Games in its effort to prepare for the Summer Maracana. Olympic Games. It was then decided that Brazil is also focussing much effort Rio would also bid for the Parapan Games on the Paralympic Games. “Our core for athletes with physical disabilities, the first Paralympic message is one of passion and time Parapan and Pan American Games has transformation,” says Leonardo Gryner, been staged in the same city. “The Parapan was a very successful event, with full stadiums and gave us the ability to understand the needs of the Paralympic Games,” says WE WILL DELIVER A GREAT Gryner. “We will deliver a great Paralympics PARALYMPIC GAME AND RAISE Game and raise awareness and change the approach for accessibility issues in Rio and AWARENESS AND CHANGE THE across our country,” Gryner promised. APPROACH FOR ACCESSIBILITY Soon after hosting the Pan American and Parapan Games, the previous President, ISSUES IN RIO AND ACROSS President Luiz Inacio Lula da Silva, tasked the OUR COUNTRY. Brazillian Paralympic Committee (CPB) with

management 65 GOING GLOBAL WITH PARKSON

An insightful conversation with Parkson Corporation's CEO, Dato' Alfred Chang enlightens the challenges and advantages of taking your retail business into the global arena. By Sharmini M Rethinasamy

Parkson, Tianshan, China he Lion Group's retail arm Parkson Corporation has since its start in 1987, made formidable headway by propelling not just sales and Tmushrooming stores within Malaysia but has grown as a retail force to be reckoned with within South East Asia. With stores in , Vietnam, Cambodia and the one that started it all, China, this retail giant is continuing on its global spree with much ease. We spoke to Parkson Corporation's CEO Dato' Alfred Chang on sharing some insights on being a global player. "You may be the best in Malaysia but you will never get the recognition and respect as a world-class player, until you prove your business beyond your home borders."

management 69 ► GOING GLOBAL◄

China's government is so tightly affiliated with its businesses, knowing what the government wants will help one draft your business plan. "This business plan coincided with the time when China's economy was opening its market forces to the global audience and the Malaysian Prime Minister was encouraging business relations with them," added Chang. "The enormous opportunities that exist in the developing and emerging markets around Asia, and many regions of the world. The opportunity to serve newly created and growing middle class consumers in these markets and to bring innovation to them, to help them with their lifestyle changing needs, and to help lift their standard of living is extremely intoxicating to me and my team. It's what keep us going forward and forward again."

2. Market Potential You need to investigate your market exhaustively to decide whether, in fact, you've got something someone there will take an interest in. It's imperative to understand the market conditions such as overall potential, competition and marketing channels. "I remember when China was being considered, we visited the only departmental store there," recalls Chang. "To buy perfume, one would have to bring their own container and have the perfume pumped in. Obviously, Parkson Corporation's CEO, Dato' Alfred Chang there was a lot of value for us to add! We realised that there was a market there."

3. Market Reasearch 1. Knowing When The You'll want to spend a significant amount of Time Was Right time analysing local spending habits, as well "It was 1992, when we realised that to be as how much time, energy, and capital will become a world class player, we'd need to be dedicated to marketing your products or adopt the world-class practices," explains services. If possible, try setting up a trial run Dato' Alfred Chang. "In order to do that we or conducting surveys before investing very needed the volume. Malaysia's population much capital. Don't overlook how much you'll at that time was only 24 million and given have to pay employees, nor what work habits that we were already the largest departmental are like in the country. store then, we needed to extend our reach, According to Chang, intensive market which was to go overseas." research and studying the variable needs

management 70 ► GOING GLOBAL◄

of the people was essential in ensuring same salary every month regardless of the Parkson's success. extra hours they put in. We introduced to them "It took us a year to conduct the relevant the idea of the more you sell, the more your research required," divulged Chang. "In addition income increases. The longer hours you work, to that, it took us another year to prepare the the higher your overtime earnings and your opening of our first store. In those days the overall income improves." regulatory department and the paperwork was very restrictive and this required a lot of work. 4. Being Humble Even after obtaining the first license, there was Humility plays a strong role in conducting a lot more licenses to get approvals for before business in a foreign country as Chang was fast we were able to open our first store in February to understand. "I always regard that no matter 1994 in Beijing." what, when one is in another country, we are Going global did have its fair share of guests. Till today despite having established challenges. "We found that China, though ourselves for many years, I still regard ourselves more modern now in their outlook, was still as guests. We have to be receptive towards coming out of their Planned economy. In a their culture. Even the relationship between Planned Economy, everything is planned. You you and the government has to be low get distribution of rice and food and people profile. Meeting new regulatory environment are handed food vouchers. There was no in terms of governmental practices, business concept of selling. Sales staff were there to practices, culture and work ethics can all be as do their job but it didn't involve selling. We challenging from country to country. One must realised then that we had to start from scratch. be able to adjust accordingly." We had to educate the staff on how to sell. Given that the will was strong to set up They comprised very smart people from rocket their business in China, Chang knew that he'd scientists to chemical engineers. At times their have to proceed with caution. intelligence really intimidated me but they were unable to convert their knowledge to 5. Bridging The Gap think commercially. "The digital info age has arrived and certainly it "What we took for granted in Malaysia, has changed the way we communicate across we can't over there as these people have markets, the speed to market and the impact of never been exposed. We introduced selling global and regional branding has taken on a incentives, the concept of service, work whole new dimension," says Chang. "Businesses ethics. They never paid overtime and had the in general, not just retail, if we can harness the benefits of digital platform, can benefit a great deal. At the same time, we have to be better at what we do because this democratisation THE OPPORTUNITY TO SERVE NEWLY means that the benchmarks for the way we do CREATED AND GROWING MIDDLE CLASS business, and serve our customers have been lifted to regional, international and global CONSUMERS IN THESE MARKETS AND standards. We can no longer hide in the TO BRING INNOVATION TO THEM, comfort of one's domestic territory."

TO HELP THEM WITH THEIR LIFESTYLE 6. Brand Recognition CHANGING NEEDS, AND TO HELP LIFT "With 125 stores, today, we are regarded as one of the most visible retail store in Asia. THEIR STANDARD OF LIVING IS EXTREMELY Before we enter a market, such as in Medan, INTOXICATING TO ME AND MY TEAM. they are very familiar with the Parkson brand

management 71 ► ENTREPRENEURSHIP◄

FRANCHISING – “WIN-WIN” SYSTEM CHANGE It has been said that the only certainties in life are death and taxes, but there is one other — change. In business, change is inevitable. It will come and, when it does, franchisees and franchisors need to navigate through it together. By Robyn Hansen

management 78 ranchise systems undergo change for offense to middle management but, when a variety of reasons – market changes, it comes to their money, franchisees do not morphing channels of distribution, want to hear from their area rep. They want economics, management, pricing, to know that their opinions and businesses Fmergers and acquisitions, etc. Any one or are important enough to garner attention a combination of these elements can force from the top. Franchisees must, (again, not a system to respond with modification. an option), attend these meetings – leaving Navigating change successfully requires their predisposed notions and conspiracy that franchisees and franchisors seize it as theories at the door – and actively listen to an opportunity to champion one another. what their franchisor has to say. Change does not have to lead to a system If conducted effectively, meetings fraught with adversity. The key to creating a between franchisors and franchisees should “win-win” is in how both sides manage their generate ad hoc, candid, and transparent strategy and response to change. discussion. Franchisees should jump at the opportunity to drill down and better TALK IS CHEAP. LITIGATION ON understand the rationalisation supporting THE OTHER HAND… system change. From these discussions, Franchisees and franchisors are notorious franchisors are provided a chance to for butting heads, particularly when it comes gauge what system-wide reaction will be to system change. System change creates a post-implementation, allowing them to situation where franchisees and franchisors proactively thwart anticipated negativity or often tout drastically dissimilar definitions of heightened resistance. “value”. As franchisees and franchisors take Following in-person meetings, open stronger opposing positions, the definition of communication, candour and transparency “value” for both sides’ starts to become eerily must continue to be encouraged. If an very similar; “zip, zero, zilch”. advisory council or franchisee association Communication between franchisees exists, franchisors should make certain that and franchisors is absolutely essential in franchisees know how to contact the members. order to avoid “zip, zero, zilch”. Both Franchisees should avoid system gossip parties have a common goal and stake – and make it a point to discuss rumours with to provide consumers with a worthwhile franchisor executives or council/association product or service and make money. Before members. Franchisors and franchisees need implementing any system change, franchisors to work together to avoid assumptions, clear- must, (in other words… no options here), up misconceptions and make certain that invite franchisees to in-person meetings with everyone in the system is well-informed in a franchisor executives who are credible and timely manner. who have decision making authority. No CARROT OR STICK – ONE, NOT BOTH, WHEN INCENTIVISING… Good stew is not made with sticks and no tree will ever grow carrots. Nature is usually FRANCHISING IS A a fairly good measure of how to properly COOPERATIVE GAME balance things. When implementing a system change requires the use of incentives, REQUIRING FRANCHISORS careful analysis of whether those incentives AND FRANCHISEES TO should be negative or positive is required. Incentives typically arise on the franchisor’s WORK TOGETHER. side, but they do not have a monopoly on

management 79 ► GLOBAL PARTNERS◄

BRINGING KNOWLEDGE CLOSER Making prestigious foreign university degrees accessible in Malaysia. By Munis Krishna

management 82 arning a foreign degree is easily university’s culture. In 1999, Monash was achievable without setting a foot out invited to be the founding member of the of Malaysia. With a host of foreign Group of Eight, comprising Australia's most universities offering prestigious, prestigious research-intensive universities, even Equality education in Malaysia, students spend though Monash was just over four decades considerably less compared to studying in the old at that time. Monash is today Australia’s universities’ main campuses overseas. most prominent university with approximately Foreign universities also benefit from 60,000 students and 250,000 alumni from setting up campuses here. Presently, there over 170 countries. are five world class universities that have set Focusing on what’s important, Monash up their campuses in Malaysia. Australia’s is determined to make a difference by Monash University got the ball rolling, followed empowering people to make a positive impact by Curtin Western Australia, ’s in this world. Monash instils determination and University of Nottingham, Australia’s Swinburne hard work in its students and inspires them to University of Technology and the latest one, realise their potential and achieve lofty goals. United Kingdom’s Newcastle University. These The university offers courses in 10 faculties universities offer the same programmes that comprising Art and Design; Arts; Business are available in their main campuses. and Economics; Education; Engineering; Information Technology; Law; Medicine, MONASH UNIVERSITY Nursing and Health Sciences; Pharmacy Monash University, in partnership with the and Pharmaceutical Sciences; and Science. Sunway Group, opened its doors to students in Other than Australia and Malaysia, Monash 1998. Monash was the first foreign university has campuses in South Africa, Italy, India and invited by the Malaysian government to start China. Monash University Sunway Campus a campus in Malaysia. Ranked in the top one in Kuala Lumpur was rated Tier 5: Excellent per cent among world universities, Monash in the Rating System for Malaysian Higher has built a sterling reputation for teaching Education in 2011 (SETARA '11). excellence and as a research focused tertiary institution in a short span of 50 years. Moving CURTIN UNIVERSITY beyond traditions and conventions, Monash Curtin University, rated amongst the best focused on being a youthful, enthusiastic in Australia for research in areas of Earth and accessible learning institution, making Sciences, Geology, Analytical Chemistry, creativity, innovation and activism the Curriculum and Pedagogy, commenced operations in its Sarawak campus in 1999. With six campuses in Australia, and two in Sarawak and , Curtin has more than 46,000 students of which 10,000 are STUDENTS GET THE BEST OF THE international students from around the world. LOCAL ENVIRONMENT AS WELL According to Pro Vice-Chancellor Professor Ian Kerr of Curtin University Sarawak, the AS INTERNATIONAL EXPERIENCE then Vice-Chancellor of Curtin University WHEN THEY CHOOSE TO decided to bring the campus to Malaysia STUDY IN FOREIGN UNIVERSITIES since the majority of its international students in Australia comprised Malaysian students. AS MOST OF THE FOREIGN Curtin University also opened another campus UNIVERSITY COURSES MIRROR in Singapore for the same reason. Presently, Curtin’s local Malaysian students comprise THEIR MAIN CAMPUS OFFERINGS. 86 per cent of the student population,

management 83 Management advert_TSSM special issue.pdf 16/01/2013 6:59:32 PM

management 87 BOOK REVIEW TOP 10 BOOKS FOR SUCCESS Each of these books will bring to you a world of resources and knowledge as you learn from the experience of top industry leaders; on what works and what doesn’t, in becoming highly effective leaders and steering your organisation towards being world-class. By Kalpana D Subramaniam

f you are looking to groom yourself into an schools. Read on and steer your destiny to effective leader, learn from industrial gurus where you wish to be. the ‘magic’ of turning your organisation towards innovation and transformation, 1. ON BECOMING A LEADER Ilook no further. We bring to you, the top ten BY WARREN BENNIS books, which have stood the test of time, are Deemed the 'dean of management guru' still best sellers to date and are widely used by Forbes magazine, Warren Bennis had as learning materials in top-notch business persuasively argued that leaders are made,

management 88 not born. In this book, which was authored in and is often hailed as the unofficial handbook 1989, Warren Bennis outlines his ideas and of GE leadership. The revised version, with theories on the principles and implementation two new chapters added by the author; plans for becoming a leader. His theories an added chapter long interview with Jack can be summed up in one sentence: “A great Welch and a complete set of Welch’s GE leader must first know himself and his world; annual letters to the shareholders, presents a only then can he lead though a shared set of good case study of how Welch transformed values and objectives with the passion and GE from a corporate dinosaur into one of the determination to make the vision a reality”. most successful corporations in the world, Bennis shares in ten chapters, a deep increasing its market value from USD13billion insight into his leadership ideas and numerous to over USD400 billion through formulating examples of good and bad leadership. six principles which guided the revolution. Bennis contributed to the field of Welch introduced, through these principles, a leadership in outstanding ways and he new management style in GE, which reduced specifically has elaborated on the idea of hierarchy and bureaucracy, empowers 'self-actualisation' and 'reflection'. He sums individuals and seeks consensus based on up his book with three top recommendations shared corporate values. These principles for leaders; status-quo is not acceptable, are adaptable from business to personal life. recruiting and retaining smart people leads Whether you are just beginning your career to competitive advantage and followers need or are in a leadership position, this book is a direction, trust and hope. must-have. A definite must-read for those in leadership positions who aspire to lead from the core. 3) DON’T FOLLOW ME: I’M THE LEADER BY DAVE DUNGAN 2) CONTROL YOUR DESTINY OR A true leader is more than someone who is in- SOMEONE ELSE WILL charge. A true leader understands the need to (COLLINS BUSINESS ESSENTIAL) empower others. The greatest opportunity for BY NOEL M.TICHY a leader is to lead other leaders. In this book, As the CEO of General Electric (GE), Jack you will discover that leadership is more than Welch’s motto is just one: “Be number one in just a rung on the ladder or a position. Dungan every market”, and GE is doing just that. This has revealed three fundamental truths about book, written by Welch's closest advisor, is success in this piece, which is, first, success is an exciting rendition of the Welch revolution never constant; second, that it is relative and third, that it is circumstantial. This book is a definite must-read for all those who believe they have what it takes to be a true leader. The choice is yours to build the ultimate skill- set to shine as a true leader. Lead on.

4) ONWARD. HOW STARBUCKS FOUGHT FOR ITS LIFE WITHOUT LOSING ITS SOUL BY HOWARD SCHULTZ Onward is the true story of Starbucks Founder and CEO Howard Schultz's passion to restore his vision for his company. Eight years after stepping down from the role of daily oversight of the company, Schultz

management 89 EXECUTIVE BRIEF EVENT

From left: Elizabeth Lee, Sunway University; Dato’ Ng Tieh Chuan, Member, Board of Trustees for Global Movement of Moderates, Jean Wong, ASLI. Dr Surin Pitsuwan delivering his lecture. RAISING THE ASEAN VALUE Compiled by MIM

ollowing the success of the Distinguished Lectures with United Nations Secretary-General Ban Ki- moon and British Prime Minister David Cameron earlier this year, Global Movement of Moderates FoundationF (GMMF) organised the third edition of this series with the ASEAN Secretary-General, His Excellency Dr Surin Pitsuwan on 30 October 2012 at the Royale Chulan in Kuala Lumpur, Malaysia. The lecture “Raising the Asean Value through the Concept of Global Movement of Moderates” was aimed to showcase Asean as a regional body that practises moderation and that the GMM was a concept worthy of global application and deployment. In Extreme right: his presentation, Dr Surin said GMM, could complement H.E. Simon Mark Featherstone, British High Commissioner the Asean charter and help the body move forward and signing in for the event. connect further with the global community. He added that the movement could share the importance and experience of moderation with countries of the world, including the Middle Distinguished guests from Thailand. East and those plagued by extremism and violence m

Sayed Munawar the emcee for the event.

management 92 From left: Tan Sri Hamidon Ali, National Authority for Chemi- cal Weapons Convention; Kamal Malhotra (UN); Selwyn Das, Guests listening to Dr Surin as Deputy Secretary General, Ministry of Foreign Affairs. he delivers his lecture.

Guests listening to Dr Surin’s lecture intently. Tan Sri Razali Ismail, Chairman of GMMF

Michele Lynch (right), Policy Officer of the Guests. British High Commission with a fellow guest.

Guests at the lecture. Guests at the event. management 93 ► CHAIRMAN'S VIEW◄

TO BE A MODERATE, ONE HAS TO BE JUSTLY BALANCED Moderation, as a principle of life, can be viewed from different perspectives. Every culture and religion has its own variation and characteristics related to its own belief system and mores.

enerally, this principle is diatribes and emotional outbursts provide exemplified in messages and fodder for the escalation of a simple conflict the personal behaviour of into violent extremism. prophets and messengers who Moderation under such circumstances Gwere chosen to guide mankind. In creation, means an acknowledgement of the fact that man has the freedom of choice. However, one side is equal to the other and that no this freedom is not absolute but limited to the side can overpower or oppress the other constraints imposed by God as revealed in side. Viewing differing perceptions equally the scriptures. Thus, there is a clear way for and from opposite ends may defuse tension. an optimal application of the human intellect A possibility for the narrowing of the gap

By Datuk Seri Mohamed Iqbal to achieve a balance between the dictates and the creation of a comfort zone of of the passions of the heart, the promptings tolerance can be found with empathy and of the mind and the cravings of the soul. understanding. Exaggeration and extremism This is the domain of the conscience where can be mitigated or even eliminated by there is a huge gap between thinking, that righteous initiatives. is, the thought process, and its manifestation A third perspective, in a way a corollary into actions. of the second, is the limits imposed by laws, Moderation, in its most basic form, divine or statutory. For example, speed limits connotes a trait of avoiding excess. Put in are imposed by road transport enactments. another way, moderation means the lessening Limit actually means dividers and barriers of the severity of an action. This implies a that are structured to regulate behaviour. A single reference point, that of extremism. Effort driving behaviour in excess of the limit is is needed to scale down the intensity to an considered a transgression of the law and acceptable or moderate level. therefore, punishable. In the case of divine Moderation can be viewed from a bipolar laws, moral suasion and ethical criteria sway perspective. In almost every endeavour, the behaviour towards a righteous conduct. there are at least two views and, very often, The punishment for deviant behaviour or the conflicting views. For purposes of theory or reward for good conduct, of course, is in debate, extreme pole-centred views are the hereafter. tolerable. However, where actions are based The transgression of a limit is self-evident in on a lob-sided view, elements of partiality, issues related to global warming and climate bias and parochialism may overwhelm. Verbal change. The adverse impact appears all of a

management 94 THE HUMAN ECO-SYSTEM ITSELF between different religions, different sects within the same religion, ideological conflicts, IS UNDER BIGGER STRESS. THE conceptual variations and dogmatic beliefs RELATIONSHIP BETWEEN DIFFERENT and hard-core radical views, are articulated in a dramatic, traumatic and violent manner. RELIGIONS, DIFFERENT SECTS WITHIN There is the danger that this tendency for THE SAME RELIGION, IDEOLOGICAL violence may become the norm, rather than an exception. CONFLICTS, CONCEPTUAL VARIATIONS Human personality is characterised AND DOGMATIC BELIEFS AND HARD- by three aspects, namely intellectual, psychological and behavioural. When all CORE RADICAL VIEWS, ARE ARTICULATED these three are harmonised in an individual, IN A DRAMATIC, TRAUMATIC AND then moderation prevails to maintain a VIOLENT MANNER. THERE IS THE balance. When one aspect dominates over the other two, the result often leads to DANGER THAT THIS TENDENCY FOR extremism. Such extremism has no regard for VIOLENCE MAY BECOME THE NORM, any limit, in speech or in action. According to Dr Mohammed Rateb Nabulsi, RATHER THAN AN EXCEPTION. moderation from an Islamic standpoint can be

sudden, although the phenomenon has been alerted a long time ago. Also, the effect is pervasive and no country in the globe has been spared. The problem is truly global in nature. The Kyoto, Copenhagen and Rio resolutions have not brought significant change to the problems of climate change. Events unfolding throughout last year indicate extreme climate change convulsions. The severity of this problem is due to the transgression of the limits and a distortion of the balance in God-created eco-systems. The stewardship role of man on earth and his trusteeship over all that is created has been severely breached. The ecological imbalance is a neglect of the moderation principle in the approach to development. In a similar vein, the human eco-system itself is under bigger stress. The relationship

management 95