THE EMERGING INTERNATIONAL TRADE ENVIRONMENT, CHALLENGES FOR RETAINING MARKETS AND JOBS, AND HOW OUR ORGANISATIONS SHOULD RESPOND WHAT IS THAT TRADE ENVIRONMENT •COLD WAR VS NEW TRADE ENVIRONMENT –1900’s –1990’s Caribbean had a protected economic environment ensured foreign exchange earnings –Guaranteed market for products had duty free access to safeguard market-sugar, bananas rum –Easy loans, technical assistance and open immigration policy WHAT IS THE NEW TRADE ENVIRONMENT • End of the Cold War – Change in policy towards Caribbean – Removal of protection –markets, immigration, loan conditions • Changes in Technology – Wider choice, connectivity, 15M new global workers on stage; China, India – Greater collaboration and global integration • Wealth Explosion – Effective people groups -become wealthier – Ineffective economies will die – 1 trillion dollars moves around world daily THE CRITICAL IMPORTANCE OF FOREIGN EXCHANGE EARNINGS •Foreign exchange dependent economies – balance of payment issues •Vital for survival of manufacturing, tourism, quality of life of citizens •Requires competitiveness of Caribbean products & services to attract the taste and purchases of extra-regional consuming public •Requires broadening the range, improving its quality and establishing marketing channels IMPACT ON CARIBBEAN ENTERPRISES •MANAGEMENT –limited skills & experience in –Strategic competitive planning –Aggressive penetrative marketing –Poor business process management –Human resource capacity building –Transformation management IMPACT ON CARIBBEAN ENTERPRISES •WORK FORCE –limited development of –Commercial performance –Commercial urgency –Problem-solving skills & involvement in planning –Customer preservation –Sense of the link of competitiveness & job retention orientation –Culture of continuous improvement IMPACT ON CARIBBEAN ENTERPRISES •ENTERPRISE VIABILITY –Capital-output ratio unfavourable –Real unit labour cost uncompetitive –Innovation limited –Unresponsiveness to customer issues –Comfortable in narrow national marketplaces –Profitability based on price increases not efficiency, new products, value added or market growth –Must now compete internationally NEW WORLD ORDER •RULES BASIC DESIGN & PHILOSOPHY •The most efficient enterprises win regardless of nationality •MFN, NATIONAL TREATMENT, •In practice –“what is mine is mine, and what is yours belongs to both of us”-Agriculture, Gambling, Textiles, Airlines, Shipping •Want access to gov’t procurement, financial services, professional services, health, education and goods •Demand compliance on bananas, rum, sugar EPA’s –ECONOMIC PARTNERSHIP AGREEMENTS ACP- EU 464M BARRIERS TO TRADE •TECHNICAL BARRIERS TBT – •Sanitary & Phyto-sanitary Requirements for ice-cream into Britain, Ackee into U.S., Beer into U.S , •MUTUAL RECOGNITION AGREEMENTS –UWI trained professionals access •TECHNOLOGY-use of banking system to block trade and enforce barriers –settling of credit card debts WHAT WE NEED TO DO •BUSINESS PROCESS MANAGEMENT •MANAGEMENT TRAINING •INVESTMENT IN TECHNOLOGIES •HUMAN RESOURCE RE-ENGINEERING •CREATION OF A LEARNING ORGANISATION •MARKETING AND DISTRIBUTION PROGRESSIVE IMPACTS •AGRICULTURE –HANDS & FEET •MANUFACTURING –HANDS & FEET a little use of HEAD •SERVICES -HEAD, HEART, HANDS AND FEET •SERVICE requires physical, mental and emotional labour BUILD A CULTURE OF SERVICE EXCELLENCE •Shift mgt focus -operational –strategic planning, H.R. Mgt & operations •Shift worker focus –short term –business goals, personal excellence, •Build a manager –people mgt. skills, planning &problem-solving skills •Build an employee-energetic in service; innovative, efficient & cost conscious STRENGTHS & WEAKNESSES •AMERICAN •CARIBBEAN •Strong economic skills •Strong social skills •Creative and innovative •Caring social networks •Time –conscious •Little commercial urgency •Results-oriented •Relationship-sensitive •Loyal to a goal •Loyal to a person •Fast-paced work environment •Comfortable nurturing •Impersonal & ruthless environment society •Relations come before work •Relations & work on different •Relations & work on same tracks tracks •Winner takes all •Inconsistent service CARIBBEAN –RELATIONSHIP CULTURE •Strong social skills •Caring social networks •Little commercial urgency •Relationship-sensitive •Loyal to a person •Comfortable nurturing environment •Sense of entitlement •Short term horizon •Result is a gift •Relations come before work •Relations & work on same tracks •Inconsistent service IMPACT OF RELATIONSHIP CULTURE ON ORGANISATIONAL PERFORMANCE ž STAFF •MANAGERS ž Ltd. responsbility for •Fear hot soup performance •Relate but fail to lead ž Risk averse •Facilitate trade-off culture ž Live in emotions •Ltd training in people development ž Ltd knowledge of •Fail to insist on business performance ž Loyal to person vs goal •Compensate for low ž Personalise feedback performance ž Sense of entitlement WALL OF WONDER Forbes Burnham Farrakhan Penny Commissiong Alicia Keyes Bob Marley Norman Manley Eric Williams Errol Barrow Rihanna Jennifer Hostein Carnival Sparrow Sidney Poitier Steel pan Derek Walcott Cicely Tyson Alexander Hamilton Wendy Fitzwilliam Billie Miller Arthur Lewis Lawrence Nurse Edward Seaga Liz Thompson William Demas Shridath Ramphal WALL OF WONDER Brian Lara Garry Sobers Frank Worrell Joel Garner Desmond Haynes Everton Weekes Clyde Walcott Wes Hall Asafa Powell Courtney Walsh Olympic relay teams Khanai Viv Richards Curtly Ambrose Obadele Ato Bolden Gordon Greenidge Kim Collins Philip Als Darcy BecklesSuki King Richie Richardson OUR FUTURE •BRILLIANT BY ACCIDENT –Beautifully and wonderfully made –Living below our potential –Increased vulnerability to external shaping •BRILLIANT BY DESIGN –Focus on national development –Set economic targets to excel internationally –Set social targets to have a high quality social & spiritual life AFRICAN PROVERB Every day a gazelle gets up and says, I must outrun the fastest lion, Every day a lion gets up and says, I must outrun the slowest gazelle So whether you are a lion or a gazelle, when you get up in the morning, start running.