Leaders are the drivers of change in companies



The change management industry is doomed. Change means uncertainty. Uncertainty means risk. Risk means danger. Humans are genetically coded to avoid danger. Therefore they will always resist corporate change.

Change management consultants (CMCs) will advise that winning employee buy-in is critical. But how do you do that? How do you convince employees that an unknown future is better than a known present? Maybe if the present is really bad, but by then it is usually too late.

But what if the CMCs win employee buy-in that is only the conscious buy-in while the subconscious remains resistant to change? No amount of MBA education is going to overcome a billion years of evolution. To understand this, consider how many times you have tried to personally change – to go on a diet, to stop smoking, to cut out caffeine, to cut out sugar, to wake up earlier, to spend more time with your children.

It was probably difficult, and if it is difficult to change for yourself then how much harder is it to change for a company?

The difficulty in enacting corporate change is why companies have a difficult time staying at the top of their sector, at least in free market capitalism. Microsoft takes over from IBM, Apple takes over from Microsoft and so on. The majority of corporate titans are one-hit wonders – innovate once and then milk it for as long as possible.

Companies in the UAE, as an emerging market, face even greater pressure to innovate and evolve. As the protectionism falls away, such as monopolies and ownership restrictions, Emirati firms will face ever increasing pressure to change or risk extinction. The sooner they plan, the better their chance to survive and flourish.

First, what will not work is hiring a chief change officer or consultant when the time comes.

Trust is critical during times of change and employees will have a hard time trusting someone who has just started at the firm. Although experts can be employed to help, successful change comes from within.

This means that within the senior management team there needs to be the type of people who can lead this change.

This brings us to the first desirable characteristic of such management – leadership. There is a lot of discussion on what a leader is, and in comparison to a manager. The two are not mutually exclusive. A leader is someone who gets people to want to follow him. It does not mean he explains things, or asks for input, or is even nice.

Cultivating leaders within a company’s management is not easy, and certainly not straightforward for a Middle Eastern culture steeped in hierarchies and deference. Too often a leader is seen as a threat rather than asset. The subtlety here is the threat is to the chief executive and other senior executives, whereas he is a clear asset to the company.

The executive leading change must be a leader but there needs to be leaders at all levels of the company for change to succeed. There does not need to be a formal hierarchy, leaders by their nature will step into the void created by change and, well, lead.

There also has to be an adjustment of the corporate culture. A patriarchal or central command-and-control culture will clearly fail any attempt at change. Change has many unintended consequences and a culture that nurtures individual innovation and is tolerant of mistakes is key to successful change.

If operational change is not preceded by the right cultural change the former will remain stuck in its initial phase for years.

Large-scale as well as continuous change are both elements of the evolution of a successful business. Also challenging is the human characteristic of change resistance.

So called “champions of change” should not be selected for their cheerleading ability but for their leadership skills, and a culture of delegated authority that is tolerant of initial failures is necessary.

Change management then is not an overnight project. It is not even an endeavour taken over a year. It is positioning the company to be able to change as and when necessary. The consultants that a company needs are not CMCs but HR and recruitment specialists to identify, recruit and retain leaders.

Sabah Al Binali is an active investor and entrepreneurial leader, with a track record of financing, building and growing companies in the Mena region. You can read more of his thoughts at al-binali.com

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DEADPOOL & WOLVERINE

Starring: Ryan Reynolds, Hugh Jackman, Emma Corrin

Director: Shawn Levy

Rating: 3/5

Company profile

Name: Thndr

Started: October 2020

Founders: Ahmad Hammouda and Seif Amr

Based: Cairo, Egypt

Sector: FinTech

Initial investment: pre-seed of $800,000

Funding stage: series A; $20 million

Investors: Tiger Global, Beco Capital, Prosus Ventures, Y Combinator, Global Ventures, Abdul Latif Jameel, Endure Capital, 4DX Ventures, Plus VC,  Rabacap and MSA Capital

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  • Place a sun reflector in your windshield when not driving
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  • Avoid leather interiors as these absorb more heat
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The Pope's itinerary

Sunday, February 3, 2019 - Rome to Abu Dhabi
1pm: departure by plane from Rome / Fiumicino to Abu Dhabi
10pm: arrival at Abu Dhabi Presidential Airport


Monday, February 4
12pm: welcome ceremony at the main entrance of the Presidential Palace
12.20pm: visit Abu Dhabi Crown Prince at Presidential Palace
5pm: private meeting with Muslim Council of Elders at Sheikh Zayed Grand Mosque
6.10pm: Inter-religious in the Founder's Memorial


Tuesday, February 5 - Abu Dhabi to Rome
9.15am: private visit to undisclosed cathedral
10.30am: public mass at Zayed Sports City – with a homily by Pope Francis
12.40pm: farewell at Abu Dhabi Presidential Airport
1pm: departure by plane to Rome
5pm: arrival at the Rome / Ciampino International Airport

If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.

When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.

How to get there: Emirates currently flies from Dubai to Orlando five times a week.
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Price: base / as tested: Dh185,000

Engine: 2.0-litre, turbocharged in-line four-cylinder

Gearbox: Eight-speed automatic

Power: 250hp @ 5,500rpm

Torque: 350Nm @ 1,500rpm

Fuel economy, combined: 10.4L / 100km

COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
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Hobbies: Writing and running
Favourite sport: beach volleyball
Favourite holiday destinations: Turkey and Puerto Rico​

'Top Gun: Maverick'

Rating: 4/5

 

Directed by: Joseph Kosinski

 

Starring: Tom Cruise, Val Kilmer, Jennifer Connelly, Jon Hamm, Miles Teller, Glen Powell, Ed Harris

 
MATCH INFO

Manchester City 3 (Sterling 46', De Bruyne 65', Gundogan 70')

Aston Villa 0

Red card: Fernandinho (Manchester City)

Man of the Match: Raheem Sterling (Manchester City)

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Install an air filter in your home.

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AUSTRALIA SQUAD

Aaron Finch (captain), Ashton Agar, Alex Carey, Pat Cummins, Glenn Maxwell, Ben McDermott, Kane Richardson, Steve Smith, Billy Stanlake, Mitchell Starc, Ashton Turner, Andrew Tye, David Warner, Adam Zampa

Business Insights
  • Canada and Mexico are significant energy suppliers to the US, providing the majority of oil and natural gas imports
  • The introduction of tariffs could hinder the US's clean energy initiatives by raising input costs for materials like nickel
  • US domestic suppliers might benefit from higher prices, but overall oil consumption is expected to decrease due to elevated costs
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India squad for fourth and fifth Tests

Kohli (c), Dhawan, Rahul, Shaw, Pujara, Rahane (vc), Karun, Karthik (wk), Pant (wk), Ashwin, Jadeja, Pandya, Ishant, Shami, Umesh, Bumrah, Thakur, Vihari

Key changes

Commission caps

For life insurance products with a savings component, Peter Hodgins of Clyde & Co said different caps apply to the saving and protection elements:

• For the saving component, a cap of 4.5 per cent of the annualised premium per year (which may not exceed 90 per cent of the annualised premium over the policy term). 

• On the protection component, there is a cap  of 10 per cent of the annualised premium per year (which may not exceed 160 per cent of the annualised premium over the policy term).

• Indemnity commission, the amount of commission that can be advanced to a product salesperson, can be 50 per cent of the annualised premium for the first year or 50 per cent of the total commissions on the policy calculated. 

• The remaining commission after deduction of the indemnity commission is paid equally over the premium payment term.

• For pure protection products, which only offer a life insurance component, the maximum commission will be 10 per cent of the annualised premium multiplied by the length of the policy in years.

Disclosure

Customers must now be provided with a full illustration of the product they are buying to ensure they understand the potential returns on savings products as well as the effects of any charges. There is also a “free-look” period of 30 days, where insurers must provide a full refund if the buyer wishes to cancel the policy.

“The illustration should provide for at least two scenarios to illustrate the performance of the product,” said Mr Hodgins. “All illustrations are required to be signed by the customer.”

Another illustration must outline surrender charges to ensure they understand the costs of exiting a fixed-term product early.

Illustrations must also be kept updatedand insurers must provide information on the top five investment funds available annually, including at least five years' performance data.

“This may be segregated based on the risk appetite of the customer (in which case, the top five funds for each segment must be provided),” said Mr Hodgins.

Product providers must also disclose the ratio of protection benefit to savings benefits. If a protection benefit ratio is less than 10 per cent "the product must carry a warning stating that it has limited or no protection benefit" Mr Hodgins added.

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COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
RESULT

Huddersfield Town 1 Manchester City 2
Huddersfield: Otamendi (45' 1 og), van La Parra (red card 90' 6)
Man City: Agüero (47' pen), Sterling (84')

Man of the match: Christopher Schindler (Huddersfield Town)

The Details

Article 15
Produced by: Carnival Cinemas, Zee Studios
Directed by: Anubhav Sinha
Starring: Ayushmann Khurrana, Kumud Mishra, Manoj Pahwa, Sayani Gupta, Zeeshan Ayyub
Our rating: 4/5 

The specs

Engine: Direct injection 4-cylinder 1.4-litre
Power: 150hp
Torque: 250Nm
Price: From Dh139,000
On sale: Now

Farasan Boat: 128km Away from Anchorage

Director: Mowaffaq Alobaid 

Stars: Abdulaziz Almadhi, Mohammed Al Akkasi, Ali Al Suhaibani

Rating: 4/5

Squid Game season two

Director: Hwang Dong-hyuk 

Stars:  Lee Jung-jae, Wi Ha-joon and Lee Byung-hun

Rating: 4.5/5

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