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2008 Story of the Year SHOW ME THE MONEY Cash Plus and Olint reportedly sucked in J$150 billion to J$200 billion, what happened to all that money?

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16 years ago

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The rise and fall of Olint, Cash Plus, and the two men who ran these companies is by far the biggest story of 2008. Their activities impacted many in Jamaica, and as far north as the UK, USA, Canada and south to Trinidad and environs. These two men, David Smith and Carlos Hill changed and rocked the Jamaican financial landscape in 2008. They are both credited as the founders and architects of the alternative investment schemes that sucked in so much money, that it has left countless thousands still wondering where it all went and will they ever get their money back. One thing is for sure, high interest rate returns will have a very different meaning from now on.

The year started with Jitters over alternative investment schemes spreading to World Wise another recently started scheme. Jitters over the uncertainty of alternative investment schemes, following a ‘cease and desist’ order against Cash Plus spread to forex exchange trading entity World Wise Partners.

A few days later the Government finally decided to step in with the Attorney General and financial officials meeting on alternative investment schemes. An urgent meeting was convened between Attorney General Dorothy Lightbourne, officials of the Finance Ministry and Financial Services Commission (FSC), to make recommendations and guidelines to address the growing concerns over unregistered investment clubs. The instruction was given by Prime Minister Bruce Golding during a meeting with Finance Minister Audley Shaw’; minister without portfolio in the ministry, Don Wheby; FSC officials and representatives of the banking sector.

Golding said the number one priority was to protect the integrity of the country’s financial system and establish the requisite legislative framework for dealing with other investment schemes that may develop in the future.

In April, it is announced that Cash Plus is in turmoil with the Investment club in receivership. The five-year-old investment club Cash Plus Limited, which has been engaged in a number of legal battles over the past 12 months, is in receivership. Kevin Bandoian, a chartered accountant employed to Price-Waterhouse Coopers in the United States, was appointed joint receiver-manager. Later that month, every investors worst fear is realised when the police following investigations announce that Cash Plus has no money here to repay, cop tells court. Supporters of Carlos Hill, the CEO of Cash Plus, the collapsed alternative investment scheme, protest and demand his release from police custody outside the Half-Way-Tree Courthouse where Hill, his brother Bertram and Cash Plus’ chief financial officer Peter Wilson appeared. Head of the Organised Crime Investigation Division (OCID) Fitz Bailey revealed in court that Cash Plus has no money in Jamaica to repay its investors. “Based on what we have investigated there is no money, we have not identified any money in Jamaica to repay investors,” Bailey said. “In addition, a number of companies and assets said to be owned by Cash Plus turned out to be false.”

Early May and the Cash Plus boss is out on bail but cannot leave home between 6:00 pm and 8:00 am. Carlos Hill, head of the failed informal investment scheme, Cash Plus, and his brother, Bertram Hill, were granted bail in the Supreme Court, but with stringent conditions. Hill, who got bail in the sum of $15 million, was ordered to report daily to the Fraud Squad and slapped with a curfew order that requires him to be at his Norbrook, St Andrew home between the hours of 6:00 pm and 8:00 am. His brother, who the police said is a Cash Plus director, was offered $10-million bail, with similar conditions set by Justice Bertram Morrison. Bertram Hill will have to remain at his brother’s house as he resides in the United States. Both men were ordered to surrender their travel documents.

Next, it was Olint, considered by many to be the safest of them all. The May 16, 2008 headline reads Olint at the crossroads. The alternative investment scheme Olint Corp headed by David Smith now finds itself at a crossroads, with its next move determining the very existence of the popular foreign currency trading outfit. For the better part of the year, it has been unable to honour all its payout commitments, with many of its members exhibiting steadfast forbearance while the club’s founder attempts to put things right.

At the same time, Olint is fighting a court case against NCB and reports are that in the United States, banking house Wachovia is conducting a protracted due diligence report, thus making it impossible for Olint to provide timely payments to its members. To compound matters further, the Financial Services Commission (FSC) continues to call for Olint to register and publish audited financial statements.

“If David (Smith) does pay out everybody what he should rightfully pay them, then there will be a huge sigh of relief right across Jamaica. He would be regarded as a hero and his reputation will be enhanced both professionally and personally. If he does not, he will be stigmatised as a charlatan and rendered a pariah. His fate lies in his own hands. His word, dare I say it, has to be his bond.”

By June 18th, the full impact of the fallout begins to seep out with the announcement by Realtors that Fallout in ‘investment schemes’ impacting housing demand. Realtors expect slower growth in the housing market in 2008, with the fallout of get-rich schemes, high oil and commodity prices. Cash Plus, Olint and Worldwise, the three popular get-rich schemes, have suspended payments to its members since early this year. With the fallout, Valerie Levy expects housing demand to slide by about 10 per cent. “This as potential homeowners no longer have the cash flow and cannot qualify for mortgages,” said Levy who heads Valerie Levy and Associates. She added that if the schemes are to reorganise, then it will again fuel the market. Prices are expected to fall but rather rise as supply continues to lag behind demand. Real estate experts say a portion of new mortgages would have come from the get-rich schemes encasements.

The local currently is not immune to all this and so the Jamaican dollar gathers downhill momentum. The Jamaican dollar brakes through the $72 mark and continues to slide, notwithstanding strong interventions and an interest-rate hike by the central bank. The currency closed on the spot market at $72.19 against the US dollar, a new record low, having hit $72.06 following a more than six cent decline. The Bank of Jamaica, signalling a positive outlook, said that the most recent movement in the exchange rate is related to payments due to overseas creditors. “This occurred at a time when local banks and other financial institutions have been reducing their exposure to credit lines offered by correspondent banks and investment houses,” said the central bank.

In mid July, one of the much talked about Cash Plus acquisitions is back with the owners who are eager to offload the loss maker. Mainland puts flagship store on the market. Jeffrey Myrie, one of the owners of Mainland International Limited, is looking for buyers for the Hardware Company’s ‘Super Home Centre’ store which sits on the periphery of Spanish Town in St Catherine. Mainland wants at least US$6 million for the property that it spent more than US$14 million building six years ago. The 87,000-square-foot store sits on 4.079 acres of land. “It’s a store that was not profitable,” said Myrie. Myrie’s insistence that Mainland would continue operating as a going concern follows a failed attempt to sell the hardware outfit to Cash Plus Limited, a company now in receivership.

Despite all the warnings and signs of grave and immediate danger there are those who see Few dangers from Olint’s slide. With no precise figure available for the funds, Olint and its various subsidiaries have under management; analyst says it is hard to predict the full impact of the corralling of the foreign exchange trader’s assets on the local economy. But there appears to be a fair bit of consensus that the immediate effect would be consumer spending, in much the same as the Cash Plus effect. Olint, considered the forerunner of the unregulated investment schemes, is as secretive about its dealings as the other 40 or so operations that regulators have detected over time. But ‘guestimates’ have centred on US$600 million (J$43 billion) of principal, and possibly US$2 billion (J$144 billion) when interest payables are added to the mix. Jamaican think tank, CaPRI, which estimated the total amount of invested funds in the schemes at J$100 billion to J$200 billion, said Wednesday that it had no individual breakout of the figures.

The media attention quickly shifts from Carlos Hill to David Smith as the Olint boss readies team for legal showdown. A high-calibre team of Jamaican and international lawyers flew to the Turks and Caicos Islands to assist Olint Corporation Ltd boss, David Smith, in preparing for a looming legal battle.

Meanwhile, in Providenciales, Turks and Caicos, few people in the British territory know the investment club or Smith. In fact, a commission of inquiry ordered by the British government into alleged government corruption in the islands is the biggest news here. Smith’s house and his offices were raided by members of the Royal Turks and Caicos Islands Police Force, who seized documents and computers. But Detective Assistant Superintendent Mark Knighton, who led the operation, said his team from the Financial Crime Unit has found nothing incriminating to date. “Our next move is to examine the contents of these documents and see what they reveal,” Knighton said. “I would say that this investigation will take months, rather than weeks because, to my knowledge, this is just a small number of the documents.”

Finally, the reality of what is about to come and for many already here is upon us. The billion dollar question now is What happened to all that money? Club members of popular foreign currency trading outfit Olint and indeed most of the country are preoccupied with two questions: Will people be able to recover their invested funds and what happened to all that money? The answer to both those questions resides with Olint’s main principal, David Smith.

Olint was expected to make a significant payout, a deadline that came and went, with no good news for its club members, many of whom have not received a payment since the beginning of the year. Earlier that month, Smith, speaking to journalist Cliff Hughes, said that Jamaicans should pray for Olint and keep their fingers crossed that the money arrives in Jamaica. Alas, divine intervention did not materialise. Many club members expressed concern, and by Monday of that week, a foreboding picture was painted when its Braemar Avenue office was closed and an e-mail was released to all club members, part of which read: “It is with some regret that we advise, that as a result of threats to staff members, including a bomb threat within the last few days which is being taken seriously, the Club Member Care Office will be closed to the public as of Monday, July 14, 2008. Efforts are being made to address the matter and we will advise you further.”

Dennis Chung staring in his crystal ball sees the future and predicts A perfect economic storm. The next six to nine months he says will be one of the most challenging periods in the economic history of independent Jamaica. “And I say independent Jamaica merely because I am not aware of what the economic circumstances were before. In fact, what is brewing, I would call a perfect economic storm. I say this not just because bad management of the economy over the years is finally coming home to roost, but also because the vicious global environment will play havoc on vulnerable economies such as ours. The reason for our vulnerability is because we have allowed ourselves to be destroyed by the demons of consumerism, corruption, crime, and politics rather than economic decisions. In fact, the infrastructure that would make our economy able to weather the current global shocks does not exist, because we have failed to educate our people and insist on productivity.”

To provide some clarity to what is happening, the BUSINESSUITE Magazine publishes a feature entitled What Exactly is a Ponzi scheme? A Ponzi scheme is a fraudulent investment operation that involves promising or paying abnormally high returns (“profits”) to investors out of the money paid in by subsequent investors, rather than from net revenues generated by any real business. It is named after Charles Ponzi. A Ponzi scheme usually offers abnormally high short-term returns in order to entice new investors. The high returns that a Ponzi scheme advertises (and pays) require an ever-increasing flow of money from investors in order to keep the scheme going.

The system is doomed to collapse because there are little or no underlying earnings from the money received by the promoter. However, the scheme is often interrupted by legal authorities before it collapses, because a Ponzi scheme is suspected and/or because the promoter is selling unregistered securities. As more investors become involved, the likelihood of the scheme coming to the attention of authorities increases.

In August members of the financial sector begin to brace for what must now come. NCB leads the way and is positioning for investment schemes fallout. National Commercial Bank of Jamaica’s (NCB) move to increase its provision for credit losses by 140 per cent over the 12 months to June 30 have led some investors to believe the commercial bank is preparing itself for the potential impact of the fall-out of investment schemes. “It would be prudent [to increase the provision] in order to make sure there are no surprises,” said Neilson Rose equity asset manager at Mayberry Investments. “You are definitely going to see some fallout and these alternative investment schemes were used as cash flow.” The provision jumped from $39.1 million to $93.1 million when the June quarter is compared year over year. Year to date that figure increased 102 per cent from $151.3 million to $307 million. NCB increased this provision even though there was a decrease in its non-performing loans as a percentage of total loans-dropping to 2.34 per cent from 2.92 per cent over 12 months.

Some are already impacted as VMBS announces that Unregulated schemes hurt them in ’07. With its deposit portfolio remaining flat last year, Jamaica’s second largest mortgage bank, Victoria Mutual Building Society (VMBS), says that its ability to attract savings was weakened by the raft of unregulated schemes that offered super returns to investors. The explanation for the weak performance in this segment of the society’s business was outlined in its recently released annual report and underlined by the bank’s chairman Roy Hutchinson and CEO Richard Powell when they addressed members at the annual general meeting.

In September, it gets worse as Bad debts grow and Gov’t continue to gauge effect of fall-out. Analysts aren’t able to peg how much the fall out of ‘get-rich schemes’ has fed into the alarming increase in the number of Jamaicans that are not servicing their loans and mortgages. What’s clear, however, is that the pace at which bad debts held by domestic financial institutions have grown over the last year is the highest it has been since the 1990s financial crisis.

Bank of Jamaica (BOJ) data released, showed that up to June 2008, $7.4 billion in non-performing loans (NPL) – loans in arrears for three months and over – was in the system, an amount equal to the capital budget for education and agriculture combined. It’s up 41 per cent over last year, even as loans grew by half that amount. “This may not be the peak of it,” said financial analyst John Jackson, who closely follows publicly listed companies. “It is something that has to be watched carefully.”
Entering the last quarter of the year Jamaican remittances weather downturn, for now – Cocking cites family loyalty. The Inter-American Development Bank warned that the pace at which remittances once flowed will slow down even more than it originally projected, due to the erosion of the dollar’s value, a spike in inflation and the financial meltdown in the United States.
But at least two remittance companies in Jamaica say for now money transfers from the United States are still strong despite the financial crisis there. “We have not seen any fallout at all, none. It is same as usual,” said Andrew Cocking, deputy group president and head of international business at the Capital and Credit Financial Group, whose money transfer operation is handled by subsidiary Capital and Credit Remittance Limited.

The banking community begins to officially speak out led by a prominent Banker who ties fallout of ‘get rich’ schemes to rising loan delinquency. While there is no empirical data to highlight the number of borrowers that have been directly compromised from the fallout in the alternative investment schemes, a sharp spike in the amount of delinquencies on loans in recent months has raised a few eyebrows in the commercial banking sector.

Scotiabank President and CEO Bill Clarke, at a Financial Services Commission investment luncheon said that there are indications that a lot of persons were affected by the collapse in the high-return “get-rich” schemes, and he suspects that an increase in the number of persons who are unable to service their loans with his institution may be related to the fallout. “In our retail banking business, we have found that over the last couple of months that there has been an escalation in delinquencies,” said Clarke. “But when we enquire as to why arrangements are not being made as originally agreed, the answer that we have been getting is ‘our revenue stream is so much impaired’.”

October and attention is shifted away from the failed investment schemes to the Global financial meltdown. Prime Minister Bruce Golding admits that the global financial crisis will affect some of Jamaica’s critical economic structures, despite Finance Minister Shaw’s earlier claims that the country would face minimal impact. However, he is steering away from instigating panic.

Finally, the reality begins to sink in and a Crisis team is put in place. Giving the clearest indication yet that Jamaica is facing fallouts from the financial crisis that has gone global, the Government is putting together a top-level team to monitor the domestic financial system, and take action as needed to steady the markets here. “There is a lot of work being done in terms of managing the crisis in Jamaica,” said Don Wehby, minister without portfolio in the Ministry of Finance and the Public Service. “We had a long meeting with all the stakeholders to determine how we are going to approach this crisis,” he said, “because it is a crisis that calls for leadership.”

Alternative investment schemes and their impact on the economy are missing from the headlines, taken over by the global economic crisis.
In late November the headline is that Latibeaudiere avoids ‘R’ word. The Bank of Jamaica said that output was likely to be flat in the December quarter, but Central Bank Governor Derick Latibeaudiere steadfastly avoided the word recession even though the economy contracted 0.3 per cent during the nine months between January to September. A recession is classically defined as two consecutive quarters of negative growth.

Confession comes in early December when is announced that Jamaica has been in a recession since the start of ’08. The Jamaican economy has been in a recession since March of this year according to official data published by the Statistical Institute of Jamaica (Statin). The data showed that realhttp://businessuite.blogspot.com/ gross domestic product (GDP) by quarter has declined year over year since the December 2007 quarter. Statin, which revised its GDP data to rebase its numbers from 1996 to 2003 and which began using, this year, the value-added approach to calculate economic activity, reported a 0.4 per cent decline in value-added during the December quarter of 2007 when compared to the corresponding quarter in 2006.

The year has closed and the alternative investment schemes, their principals, investors and the overall impact on the economy are no longer it would appear current and newsworthy.

Additional sources: Daily Observer, Daily Gleaner, and Internet sources

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Businessuite News24

Why Jamaica Should Now Set Up a Sovereign Wealth Fund: Lessons from Around the World and Pathways Forward

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13 hours ago

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November 23, 2024

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In an era where economic stability, sustainability, and growth are increasingly linked to strategic investment, Sovereign Wealth Funds (SWFs) have become pivotal tools for countries seeking to secure long-term wealth and ensure fiscal resilience. From Norway’s Government Pension Fund Global to Singapore’s Temasek, SWFs have enabled nations to tap into their natural resources, surplus revenues, and financial assets to drive economic prosperity. For Jamaica, establishing an SWF could be a game-changer—particularly in strategically important sectors such as technology and logistics—boosting growth, infrastructure, and innovation. But what lessons can be drawn from other nations, and how can Jamaica begin the process?

Global Lessons: Why Sovereign Wealth Funds Were Set Up

Sovereign Wealth Funds are state-owned investment vehicles that manage a country’s wealth generated from surplus revenues. Typically, these funds are built from natural resource wealth, sovereign surpluses, or foreign currency reserves. Countries around the world have set up SWFs to achieve multiple objectives, including:

  • Revenue Diversification: For countries heavily reliant on natural resources (e.g., oil, gas, minerals), SWFs help to diversify income streams by investing in international assets. Norway’s Government Pension Fund Global, for example, was established in 1990 to ensure that the country’s vast oil wealth would benefit future generations. The fund is now valued at over $1.4 trillion, providing a stable source of income and contributing to Norway’s high standard of living.
  • Stabilizing the Economy: SWFs serve as stabilizing mechanisms during economic volatility. For example, the Abu Dhabi Investment Authority (ADIA) was created to manage oil revenue surpluses, helping the United Arab Emirates (UAE) balance its economy during periods of fluctuating oil prices. These funds can also help buffer countries against market downturns and reduce dependence on foreign debt.
  • Social and Economic Development: Some SWFs are designed to invest domestically, driving infrastructure projects, technology innovation, and long-term economic development. Singapore’s Temasek has invested heavily in sectors like technology, finance, and biotechnology, turning Singapore into a global business hub and innovation leader.

Why Jamaica Needs a Sovereign Wealth Fund

Jamaica stands at a critical juncture in its development. While the country has made strides in stabilizing its economy and reducing debt, it continues to face significant challenges in terms of growth, unemployment, infrastructure, and innovation. The establishment of an SWF could address several issues:

  1. Diversifying Revenue Sources: Jamaica has limited natural resource wealth compared to countries like Norway or the UAE, but its burgeoning tourism sector, agricultural exports, and potential in renewable energy could serve as sources for building an SWF. By harnessing surplus revenue from these sectors, Jamaica could reduce its reliance on volatile industries and international borrowing.
  2. Investing in Critical Sectors: With a focus on technology and logistics—two key sectors for Jamaica’s economic transformation—an SWF could directly fund strategic infrastructure projects and innovation initiatives. Jamaica’s logistics sector, in particular, is primed for growth, thanks to its strategic location between the Americas and its modernizing port facilities. Technology, particularly in areas such as fintech, e-commerce, and digital platforms, offers significant opportunities to drive productivity and global competitiveness.
  3. Long-Term Economic Stability: Jamaica’s SWF could serve as a buffer in times of economic crises, reducing the country’s reliance on external loans or foreign aid. By investing in international assets and diversifying revenue, Jamaica could stabilize its economy during periods of local or global market downturns.
  4. Intergenerational Wealth: Just as other nations use their SWFs to secure the prosperity of future generations, Jamaica could use its SWF to ensure sustainable wealth. By building a fund with a long-term investment horizon, Jamaica could improve its fiscal health and create financial security for generations to come.

Case Studies of SWFs in Technology and Logistics Investment

Countries have used their SWFs to strategically boost sectors critical to their economic future. A few notable examples:

  • Singapore’s Temasek: This fund has made substantial investments in high-tech companies, including stakes in global tech giants such as Alibaba and Facebook. By focusing on sectors like technology, innovation, and sustainable energy, Temasek has played a key role in transforming Singapore into a global business and technology hub. Jamaica, with its focus on a digital economy, can benefit similarly by using an SWF to foster its tech industry, from supporting local tech startups to attracting international investment.
  • Norway’s Government Pension Fund Global: While Norway’s SWF primarily invests internationally, it has also funded domestic initiatives related to renewable energy and sustainability, sectors that could align with Jamaica’s Green Economy ambitions. As the world shifts towards renewable energy, an SWF could help Jamaica pivot to clean energy investments, such as solar and wind, helping to both diversify the economy and create jobs.
  • United Arab Emirates’ ADIA: The UAE’s SWF has invested heavily in logistics infrastructure, capitalizing on the country’s strategic position as a global trade hub. The UAE’s investment in ports, free zones, and air freight facilities has turned it into a global logistics leader. Jamaica, with its proximity to key shipping routes, could use an SWF to fund logistics infrastructure such as ports, highways, and transportation systems, strengthening its competitive advantage in the global supply chain.

How Jamaica Can Start the Process

The establishment of an SWF requires careful planning and coordination among key stakeholders, including the Jamaican government, financial institutions, and the private sector. Here are a few steps Jamaica can take to begin the process:

  1. Set Clear Objectives: Jamaica should define the strategic goals of its SWF—whether for stabilizing the economy, diversifying revenue, or funding specific sectors like technology and logistics.
  2. Identify Funding Sources: Jamaica can consider using surplus revenues from key sectors (tourism, agriculture, remittances, renewable energy) as well as potential future revenues from investments in the logistics and technology sectors.
  3. Create a Governance Structure: Establishing strong governance is crucial for ensuring transparency and accountability. The SWF should be managed by an independent body, free from political influence, with a mandate to focus on long-term returns.
  4. Develop Investment Strategies: The fund should target both domestic and international investments, with a focus on sectors that will drive Jamaica’s economic growth, such as technology, infrastructure, and logistics. Investments should be made with an eye toward sustainability, creating jobs, and fostering innovation.
  5. Engage with International Experts: Jamaica should collaborate with international financial experts and countries with established SWFs to gain insights into best practices and avoid common pitfalls.

How It Can Benefit the Jamaican People

An SWF, when managed effectively, could provide significant benefits to the Jamaican people:

  • Job Creation: Investments in technology and logistics infrastructure could lead to the creation of thousands of high-skilled jobs in emerging industries.
  • Economic Growth: By funding key infrastructure projects and fostering innovation, Jamaica could become more competitive on the global stage, attracting investment and boosting exports.
  • Social Benefits: The SWF could fund social projects in education, healthcare, and environmental sustainability, improving the quality of life for Jamaican citizens.
  • Fiscal Stability: Over time, an SWF can provide a steady stream of revenue, reducing Jamaica’s reliance on international loans and enhancing fiscal sovereignty.

Conclusion

Establishing a Sovereign Wealth Fund offers Jamaica a unique opportunity to build a more resilient and prosperous future. By learning from global examples and focusing on strategic sectors like technology and logistics, Jamaica can leverage its natural and human resources to create a fund that ensures long-term economic stability, growth, and social progress. The time is now for Jamaica to explore the potential of a Sovereign Wealth Fund, laying the groundwork for a sustainable and diversified economy for generations to come.

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Why the Customer Is Not Always Right: My Leadership Perspective on Saying ‘No’

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14 hours ago

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November 23, 2024

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As a supply chain professional and strategic leader, I’ve spent years navigating the complex interplay between customer satisfaction, operational efficiency, and business profitability. One of the most important lessons I’ve learned is that the mantra “The customer is always right” can be a double-edged sword. While it emphasizes the value of customer-centricity, if applied indiscriminately, it can lead businesses into a cycle of inefficiency, overextension, and unsustainable practices.

In the supply chain industry, where precision, cost control, and resource optimization are paramount, saying “yes” to every request is not always feasible—or wise. Strategic leadership requires the courage to say “no” when necessary, not as a rejection but as a commitment to long-term growth, team empowerment, and operational excellence. Here’s why saying “no” is essential in supply chain management and how to recognize the right moments to do so.

The Hidden Costs of Saying “Yes”

In supply chain operations, every decision has a ripple effect. Saying “yes” to misaligned requests or the wrong customers can significantly impact your team, your margins, and your ability to deliver. I’ve seen firsthand how overcommitting to unrealistic timelines, excessive customization, or low-margin projects leads to inefficiencies and burnout.

One of the clearest examples comes from taking on customers whose demands exceed their value. These high-maintenance clients often require disproportionate attention, frequent changes, or premium service without paying for it. The result? Increased cost-to-serve, strained resources, and lower profitability. Worse, these customers are typically less loyal, leaving when a competitor offers a slightly better deal.

Overpromising is another common trap. I’ve worked in scenarios where teams committed to deadlines or capabilities that were not operationally feasible in an effort to secure a deal. The result wasn’t just missed targets—it was damaged trust and strained relationships with both customers and internal stakeholders. I quickly realized that when you say “yes” to everything, you inevitably say “no” to quality, focus, and sustainability.

The Strategic Value of Saying “No”

Saying “no” strategically has transformed how I lead and operate in the supply chain industry. By focusing on aligned opportunities, I’ve seen how businesses can reduce customer acquisition costs, improve retention, and enhance team morale. Instead of chasing every opportunity, we should double down on building relationships with customers who value our expertise and share our vision.

This focus will also strengthen your brand. Customers respect partners who prioritize quality, transparency, and integrity over short-term gains. Saying “no” sends a powerful message: that you’re committed to delivering value and maintaining high standards.

When to Say “No”

As a strategic leader, the ability to say “no” starts with recognizing when a request, customer, or opportunity isn’t aligned with your organization’s goals or strengths. Here are the key signs I’ve used to guide these decisions:

1. Misalignment With Core Competencies

Every organization has areas where it excels and areas where it doesn’t. In supply chain, this could mean expertise in temperature-controlled logistics, last-mile delivery, or reverse logistics. If a customer’s request falls outside these capabilities, the risk of failure increases significantly. Saying “no” in these cases ensures your team remains focused on what they do best.

2. Unsustainable Cost-to-Serve

I’ve seen how taking on low-margin customers or high-maintenance accounts can drain resources. When the cost-to-serve exceeds the revenue or strategic value a customer brings, it’s time to reconsider. Saying “yes” to these customers only creates inefficiencies that ripple across the supply chain.

3. Overburdening the Team

In supply chain operations, morale and capacity are critical. If a request would stretch your team beyond their limits, it’s not worth pursuing. Protecting your team from burnout is as important as protecting your bottom line.

4. Jeopardizing Service to Loyal Customers

One hard lesson I learned was that prioritizing demanding or misaligned customers often comes at the expense of loyal, high-value clients. Saying “no” in these instances is about protecting the relationships that matter most.

5. Conflicts With Company Values

In supply chain management, integrity and compliance are non-negotiable. Whether it’s maintaining ethical sourcing, adhering to safety standards, or delivering on promises, I’ve found that saying “no” to anything that compromises these principles is essential for long-term success.

How to Say “No” Strategically

Saying “no” isn’t just about drawing a line; it’s about doing so in a way that maintains trust and professionalism. As a supply chain leader, I’ve developed approaches to declining requests while preserving relationships:

1. Start With Empathy

Acknowledging the customer’s perspective is crucial. For example, I might say, “I understand how important this is to your operations, and I appreciate that you’ve brought this to us.” This approach shows that you’re listening and care about their needs.

2. Be Honest and Transparent

Customers value integrity. If I know we can’t deliver to the standard they expect, I explain why. For instance: “This timeline doesn’t align with our current capacity, and we want to ensure we deliver the quality you deserve.”

3. Offer Alternatives

Declining a request doesn’t mean leaving the customer without options. I’ve found success in providing recommendations, whether it’s extending a timeline, suggesting a partner, or offering a modified solution.

4. Use Positive Language

Framing a “no” positively is a subtle but effective way to maintain goodwill. Instead of saying, “We can’t do this,” I might say, “We can support you in a way that aligns with our strengths, ensuring the best outcome.”

5. Reinforce Commitment

Even after declining a request, I make it clear that the relationship is valued. “We look forward to continuing to work with you on initiatives where we can truly add value.”

In the end, saying “no” is not about shutting doors—it’s about opening the right ones. As a supply chain leader, I’ve learned that the courage to set boundaries is what paves the way for sustainable success. By focusing on the customers, requests, and opportunities that align with your strengths and values, you create a foundation for operational excellence, team empowerment, and lasting profitability. Saying “no” isn’t a weakness—it’s a strategic decision that demonstrates integrity, foresight, and a commitment to delivering actual value. So, the next time you’re faced with a tough call, remember: the power of a well-placed “no” can be the strongest “yes” to growth, focus, and resilience.

The views and opinions expressed are those of the author/s and do not necessarily reflect the official policy or position of companies or clients for whom the author/s are currently working or have worked. Any content provided by the author/s is of their opinion and is not intended to malign any religion, ethnic group, club, organization, company, individual, or anyone or anything.

Jermaine Robinson, MBA, CSCP
Supply Chain Management Leader | Supply Chain Services | Supply Chain Transformation | SCM Growth Accelerator

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Who Is Mark Myers? Managing Director, Restaurants of Jamaica Ltd., and Chairman, Barita Investments Limited

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3 days ago

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November 20, 2024

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Mark Myers is a highly influential figure in Jamaica’s business landscape, recognized for his leadership in the food and financial sectors. As the Managing Director of Restaurants of Jamaica Ltd. (ROJ), Myers oversees the operations of the island’s KFC and Pizza Hut franchises. Under his stewardship, these brands have achieved significant market penetration and operational success, making KFC a household name in Jamaica.

In addition to his role at ROJ, Myers is the Chairman of Barita Investments Limited, a leading investment firm in Jamaica. Since his appointment, he has been instrumental in guiding Barita’s strategic direction, fostering innovation in financial products, and promoting a culture of corporate growth and resilience. His leadership has been associated with Barita’s impressive financial results and expanding influence within the regional investment space​

Career Path and Achievements
Mark Myers’ career showcases a trajectory of calculated growth, marked by his ability to innovate and lead in competitive industries. While his business ventures are diverse, his strategic acumen has consistently driven success. At ROJ, Myers has focused on customer satisfaction, operational excellence, and employee development, ensuring the sustained popularity of its quick-service restaurants.

At Barita, Myers’ tenure as Chairman coincided with the firm’s transformational initiatives, including capital raises and strategic investments aimed at solidifying its position in the financial market. His ability to balance risk with opportunity underscores his effectiveness as a business leader​

Management Style and Vision
Myers is known for his collaborative and forward-thinking management style. He prioritizes team development and innovation, aligning his teams with the long-term vision of the organizations he leads. His leadership ethos is characterized by adaptability, customer focus, and a commitment to excellence.

Contributions to Business and Society
Beyond his corporate roles, Myers is committed to community development and fostering opportunities for growth within Jamaica. His leadership in both the food service and financial sectors has significantly contributed to the country’s economic development and consumer confidence.

Mark Myers continues to be a vital figure in Jamaica’s business ecosystem, blending expertise in operations, strategic planning, and leadership to drive sustained success across multiple industries.

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Businessuite News24

Who Is Christopher Zacca President and CEO, Sagicor Group Jamaica Limited?

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4 days ago

on

November 19, 2024

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Christopher Zacca is a celebrated Jamaican business leader whose career spans multiple industries, including financial services, energy, telecommunications, and manufacturing. As President and CEO of Sagicor Group Jamaica Limited, Zacca has played a pivotal role in steering the organization through significant challenges and innovations, solidifying its position as a leader in the region’s financial services industry.

Career Path and Achievements
Zacca’s professional journey is a testament to versatility and strategic vision. Before joining Sagicor, he held executive and advisory roles across diverse sectors, gaining a reputation for transformative leadership. At Sagicor, he has overseen initiatives that have bolstered the company’s financial stability and growth. His tenure has been marked by a decisive response to the COVID-19 pandemic, where he spearheaded the creation of a COVID-19 committee to ensure business continuity while safeguarding stakeholders. This initiative showcased his proactive leadership and ability to navigate complex crises​

Management Style and Vision
Christopher Zacca is recognized for his transparent and ethical approach to leadership, which he attributes to the strong moral grounding instilled by his family. He believes in building cohesive teams and fostering an environment of collaboration and mutual respect. Zacca’s strategic focus combines disciplined risk management with innovation, driving both organizational resilience and growth​

Contributions to Business and Society
Beyond his corporate successes, Zacca is deeply committed to national development. He serves as chairman of the National Private Sector Vaccine Initiative, reflecting his dedication to public health and social responsibility. His leadership philosophy emphasizes mentorship and learning, inspired by his own experiences with influential mentors such as Gordon “Butch” Stewart​

Future Goals
As Zacca looks to the future, he envisions expanding Sagicor’s revenue and geographic footprint by at least 50%. He also plans to transition from day-to-day management to board-level contributions and other roles that enable him to give back to the community while leveraging his extensive leadership experience​

Christopher Zacca exemplifies the qualities of a transformative leader, balancing business acumen with a commitment to ethical leadership and community impact. His journey provides inspiration for emerging leaders across Jamaica and beyond.

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Who is Don Wehby, Group CEO of GraceKennedy?

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1 week ago

on

November 16, 2024

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A Legacy of Leadership at GraceKennedy
Don Wehby has been a transformative leader at GraceKennedy, one of Jamaica’s largest and most diversified conglomerates. Since becoming Group CEO in 2011, he has driven the company’s growth through a clear strategic focus on international expansion and innovation. Under his stewardship, GraceKennedy has expanded significantly in the global food and financial services sectors, achieving a balance of organic growth and strategic acquisitions.

Wehby first joined GraceKennedy in 1995 as Group Finance Manager. His leadership has been pivotal in major milestones, including the acquisition of Catherine’s Peak, La Fe Foods in the U.S., and Consumer Brands Limited. Notably, his efforts helped grow revenues and solidify GraceKennedy’s footprint in key international markets such as North America and the United Kingdom​

Visionary Management and Style
Wehby is recognized for his focus on creating a dynamic management team and cultivating Caribbean talent. Drawing inspiration from leaders like Jack Welch, Wehby emphasizes mentorship and succession planning. He actively recruits and develops high-potential executives, fostering a leadership pipeline that positions the company for sustained success. He is also known for his decisive yet collaborative approach, empowering his team to take ownership of key initiatives​

Challenges and Triumphs
Navigating Jamaica’s challenging economic landscape, Wehby has championed GraceKennedy’s resilience. From navigating geopolitical complexities to modernizing operations, he has consistently delivered strong results. His strategic decisions to relocate GraceKennedy’s headquarters to downtown Kingston and focus on foreign markets reflect his bold vision for the company’s future​

Beyond Business
Wehby has made significant contributions outside the corporate world. As a senator and honorary consul for New Zealand, he has advocated for economic reform and strengthened Jamaica’s global ties. His passion for sports is evident in GraceKennedy’s sponsorship of events like the Boys’ and Girls’ Championships, reinforcing the company’s commitment to community development​

Looking Ahead
As GraceKennedy continues its ambitious growth trajectory, Don Wehby remains a cornerstone of its strategy to become a global powerhouse. His focus on leveraging international markets while fostering local talent ensures the company is well-positioned for future success. With his leadership legacy firmly established, the company looks forward to realizing its global ambitions while staying true to its Jamaican roots.

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