Failing Banks

The future is not that hard to see when it comes to the international banking sector. Traditional banks have long started to implement a transformation plan, driven by the advancements in information and communication technology, which has been accelerated by the worldwide recession. Now, Governments are pushing for more rigid regulations and prudent examinations to protect their populations.

Investor Relations

For any relationship to survive it must be based on respect, sensitivity, confidentiality and most prominently, loyalty. Business comprises numerous relationships with; customers, suppliers, venders, employees, bankers and investors. Customers, whose positive word-of-mouth endorsement brings in more sales, Suppliers, who offer superior products and above normal service, Venders who are dependable, Employees that are devoted, Bankers that are considerate, and Investors that offer encouragement and strength.

The relationship with investors is the most important to the business success but is the most difficult to manage and maintain. Investors come in all shapes and sizes, some invest money and anticipate a return on their financial investment, others invest advice (time and expertise) and expect shares as payment, and then there are investors who are family and friends that demand more intangible rewards.

Investment Banking

The Investment Banking sector has a very important role to play in the global economic recovery, although being blamed for causing the world financial crisis in the first place. A sustainable recovery must be driven by quality job creation, which can only be as a direct result of financing new projects, with stronger independent oversight to identify potential risk. Regulators of the world’s largest economies have been analyzing the problems and devising solutions to save and repair the image of the sector.

Investment Banking brings together viable projects and needed funding. All major developments in the world, over the recent past, were funded through investment banking activities. Bringing inventions to market, modernizing infrastructure or expanding capabilities, all required unique and creative funding solutions. A mixed of debt and equity funding that would restrict short-term debt repayments, allowing for a healthy cash flow position, while the project is not generating income, clearly understanding the risk associated with medium to long-term revenue streams. Investment bankers sell the calculated risk to large corporations and wealthy individuals who can afford the losses but buy-in for the long-term gains.

Success from Failure

The failure of the education system to present and promote business (not to be confused with management studies) as a career option has led to a society of employees. This failure must stop, the system must not allow dropouts, for any reason, access to education is a basic human right, no discouragement from testing but an assessment formula that addresses, without shame, the individual’s learning speed and aptitude. Success of any education system, from early childhood to adult instructions, is to promote a love of learning, foster a curiosity and desire to research, analyze, implement and evaluate.

Revolution Calls

As many societies come to grip with lower Government revenues resulting in higher levels of unemployment and less take home pay for many, one must sit up and take notice when the word “Revolution” is used. The most vulnerable in society are normally the ones most easily provoked to take action. All leaders in society must be sensitized as to how they words are publicly received and the accumulative effects of their criticism, both on individuals and on the offices of Government.

Opposition to any Government is very necessary to voice and point out corruption and waste, more importantly to present itself as an alternative choice to be duly elected, based on superior ideas, at the appropriate time. Calls for revolution from politicians, who are presently not in Government, can be misunderstood by many to mean – the removal of the sitting Government by any means necessary. This is not what politicians mean, nor should it be inferred, not if they hope to be in Government in the future, to lead the very same people who can be made to act against a Government. What is meant by any opposition is that the present Government’s policies are wrong and we have a better solution. One can disagree without threatening.

Maintenance Business

To offer prospective clients a holistic solution in work place maintenance requires a multi-skilled crew; security personnel trained in medical first aid with basic knowledge in electrics, electronics, plumbing and other minor repair functions, a truth handy team. To build such a business will require the merging of existing specialty operations with a heavy emphasis on on-the-job-training.

The chief executive officer, while in-charge of his team of executives, is basically the principal of the training operation and hence, promotions will be driven mainly by achieving additional skill-sets. With the standard support of a financial officer and a legal officer, the chief executive officer is expected to generate profits by winning new contracts and creating an atmosphere to encourage and keep highly trained personnel.

Independent Oversight

Democracy is a unique balance between empowering the people and gridlock. Having understood the roles of the three branches of Government, the executive, the legislation and the judiciary, one can easily mistake them as independent of each other. In fact and practice, both the legislation and the judiciary depend on the executive for administrative and development funds and can be hindered by the said executive, which begs the question “Should there be an independent publicly elected comptroller of the public purse”.

Many jurisdictions have independent elections for all three branches of Government. The executive and legislative branches are commonly elected in some type of national event and others are calling for public hearing on judicial appointments. This call goes further to include the election of key public servants or independent officeholders to bring a high level of integrity and diminish direct political influence on decisions. A forth branch of Government perhaps, the public service, where public budgeting, public auditing, public prosecution and other sensitive decisions are made.

Addressing Unemployment

With unemployment high many good people turn to government programs as a survival strategy. Social programs, coupled with training and medial work, intended to prepare participants to build a career. Small and Medium Enterprises (SME) soft loan programs designed to fund or guarantee funds with employment creation as its main objective. Higher education programs designed to expand participants’ job marketability. These are all noble programs, unfortunately calculated to meet internationally set public statistical objectives rather than individual needs.

Emphasis is misplaced on the executing agency to produce quantity instead of quality. On-the-job-training or apprenticeship was always meant to be part of a wider mentoring program, taking individual assessment throughout, exposing the individual to many career paths, recording work accomplished and monitoring aptitude. In other words, giving hope, some financial support and working experience to an individual.

Strategic Planning

Whether budgeting for home, city or country, outlining what is ideal is the most important step towards creating it and the next is removing all impediments. A Strategic Plan is an active document which adapts to changes without losing sight of the target. Hence, this target or goal must be well thought out, measurable and attainable. For example, an individual may set a personal goal to retire from physical work at age sixty, with a pension income that remains at double their living expenses and unencumbered assets to maintain their life-style. Similarly, with Public Funds the goals and objectives must be to generate revenue through diverse economic activities to meet its recurrent expenditure and constantly seek to improve, through capital investment programs, the standard of living for (all) its people.

Business Psychology

To understand business, one must first properly identify with business people. The mindset of today’s business person originates from their background, the most influential person in their life (a mentor), their learning process whether formally schooled or driven by work experience and their social and financial support structure. In each case, whether from the home of an employee, a manager or a business person, today’s business mind reflects the levels of risk-comfort.

With an employee based background: Where one is guided to follow instructions involving repetitive tasks and routines, and be rewarded with and assured of a wage envelope. Learning is restricted to those areas that affect the job. Borrowing to support home and family and saving for retirement are the major financial concerns. Many success stories develop from this background by opening business based on their own skills and the work they have experience in doing (Auto Mechanic opens Repair Garage or Hairdresser opens Beauty Saloon), employing small numbers of staff to reduce their worries over meeting payroll and external (Accountants) professional services. This type of business person, can also be defined as a contract employee, is a low risk-taker and finds comfort in the respect given by associations as a result of a register business name.