Connect with us

Leadership Conversations

Can Phil Do It? Make a difference at Cable and Wireless that is.

Published

17 years ago

on

It’s amazing how porous corporate board and company meetings are! Discussions and decisions taken at supposedly confidential meetings are often fodder for the uptown cocktail circuit before they spread along the corporate grapevine. A number of analysts and business executives consulted, expressed no surprise at the apparent dismissal of Rodney Davis. As a matter of fact, many expressed surprise at the length of time that it took the Cable and Wireless Jamaica Board.

It appears that the proverbial writing was on the wall from last year and everyone knew except the 40-year old Jamaican who, born off Hagley Park Road in Kingston, spent most of his life in Canada before destiny finally brought him home in July 2005. Or, did he know? Was he negotiating his way out but ran out of time and space to negotiate with the publication of the company’s last quarter financials? The decision to terminate was widely rumoured last year but was apparently stayed, due to the instability of Cable and Wireless Jamaica (C&WJ).

However, published comments from new CEO Phillip Green seem to support the view that Davis might have been negotiating his departure. Green is reported to have said that “This was discussed with Rodney some time ago, and by mutual agreement it was deemed that a change of leadership was needed. I must say here that Rodney has done a fantastic job over the last couple of years in lifting the profile and image of C&WJ,”

Obviously not good enough to keep him until his contract expired.

In supporting Green’s comments, Company spokesman and Vice- President for Corporate Communications and Corporate Affairs Errol Miller told The Gleaner’s Wednesday Business that it was agreed that new leadership was required. “Rodney has agreed with the Board that a change in leadership is needed to take the Company in a new dimension.”

Last September, a year into his tenure, Davis and his bosses dismissed the rumours and insisted during a conference call that the young CEO would remain at the helm for the long haul.

“I would be the person who would tell Rodney that you only have two years,” said C&W Panama CEO, Chris Hetherington, who is also head of Cable and Wireless in the Caribbean. “I haven’t done that. On the contrary, I have said to Rodney, ‘it is a great business in Jamaica with a lot of potential; turn it as fast as you can.’ ”

Davis is also published as saying that he did not foresee leaving the beleaguered company before 2009. “We have a long-term incentive plan to maximise benefits to our shareholders by 2009. I wouldn’t see a horizon that ends before that … certainly not during my tenure,” he said.

And so, corporate Jamaica tongues were set wagging at Cable and Wireless International’s announcement that Australian Phillip Green had replaced Rodney Davis as CEO of its Jamaican operations with immediate effect. Not the news so much, but the way it was done. The late afternoon announcement left no doubt that Davis was sacked, but when questioned, Green said the change was made to strengthen the firm’s management and profile. This apparently could not have been done with Rodney around.

Executive Fallouts

Davis becomes the fourth CEO to depart the company since 2003. His sudden departure is an ongoing spate of executive fall out going back to Errald Miller, the longest serving CEO in the last fifteen years. Over the past seven years C&WJ has had four CEO’s, three prior to Davis; namely Errald Miller, Gary Barrow, Jacqueline Holding and Davis – and now Green – the fifth. Jacqueline Holden stayed in the job for only 10 months, succeeding Greg Barrow, who left in 2003. Davis took over from Holden.

Over the last three years, C&WJ has lost at least 23 senior managers, some either being shown the door or deciding to quit while they were ahead. These include chief financial officer Mark Thompson – now at Michael Lee Chin’s Advantage Insurance – and his deputy, reportedly let go last year. Insiders say they were part of a team of close friends installed by Rodney when he took over as CEO.

But by far the most visible and turbulent department has been Marketing. None of the Vice Presidents of Marketing have so far been able to keep their jobs for more than one or two years, and current head of marketing Stephane Lecuyer, another of Rodney’s hand picked associates, is rumoured to be under very close watch. Stephane took over the top marketing position late last year when the highly controversial Grant Mercer stepped down under very cloudy circumstances. Other senior marketing casualties in the recent past include Sandra Bodden, now at Anbell Media; Patrick Gillings who has since gone into his own business with fellow business partner Robert McCook; Collin Smith migrated to Canada with his family to take up a lucrative marketing position; Jacqueline Knight-Campbell, who has gone back to her very successful consulting business; David Burton who went to Wysinco. LLoyd Pusey who joined from RJR is also reported to be leaving. There’s no word on the whereabouts of Tamara Warden and Rowan Wade has recently joined MiPhone as Marketing Vice President.

Marketing Blunders

A number of marketing and advertising professionals are of the opinion that there’s a perception that C&WJ always seems to be following Digicel, the Irish company that literally knocked them into the #2 position in the mobile market, and their main nemesis. According to these professionals, C&WJ sought to out do, or compete directly for market share. Digicel on the other hand, seemed to deliberately ignore what Cable and Wireless was doing and focus on what was required to grow its business. If true, this strategy has worked and has left the former monopoly with many failed and/or questionable campaigns and, even managing to offend many Jamaicans in one particular campaign.

It’s very hard not to compare the two marketing strategies:

“They just failed to get the marketing strategy right, a typical example is walking away from Sumfest, a very successful event and went with Sunsplash. A big mistake that has reportedly cost them dearly and for which they are still paying for according to those close to the situation. How they could have done that is beside me. Sumfest was big with the under 35’s demographic a sizeable portion of the Jamaican population and a very profitable market segment especially for mobile services. Sunsplash was off for too many years for this demographic to even remember, other than to hear their parents and grand parents talk about when they use to go back in the 80’s. Many of these under 35’s are too young to remember or even experience Sunsplash. And that’s whom they were targeting. Big mistake”, commented one Entertainment Marketing executive.

An advertising executive said that he couldn’t recall a single C&WJ campaign that resonated –“well, maybe except one – Switch On. This for me was their best and most impacting campaign, but rather than build on the momentum developed they dropped it and went on to something else. I don’t even remember what they went to. The BMW promotion done a few years ago went bad also and had to be re-drawn, this was done very quietly, and the car handed over with no coverage. There was also a ‘pimp my ride’ type promotion done a year or so ago, but no follow-up. Nobody knows who won, and how the car now looks. Lost opportunities. I’m sure there are others but I cannot recall them at the moment.”

In agreement, another ad executive weighed in with her own perspective: “Pressa was a good campaign and had some potential. However a number of people I have spoken to seem to agree that a taxi man was not aspirational (sic) and identifiable with the young mobile market segment and failed to gain the desired traction. I am also somewhat amazed that given the millions of dollars they have spent on marketing that they do not have one sustaining property that they are building on each year. Take for example Digicel and the Rising Star programme: that generates immense revenues and goodwill each year for the Digicel brand. bMobile has nothing like that. ”

Common consensus on one particular campaign, The Clown: “This apparent direct attack at Digicel and their over 1.5 million subscribers at the time, with a clown, suggesting that Digicel and the 1.5 million Jamaicans were dunces, was a big mistake. You don’t insult your market, that’s a big mistake. That campaign and promotion disrespected a lot of Jamaicans and created a negative word of mouth campaign against the company.”

A well respected Brand strategist in commenting on the methods deployed by CW&J over the last few years suggested that, “The biggest marketing blunder to date, must however be the failure of the company from inception, to effectively brand their mobile product and service, in the face of imminent and growing competition from Digicel.

“In the time that the Digicel brand has been around, Cable and Wireless Jamaica must have branded and re-branded their mobile product at least three times.

“The last and current one, bMobile, was a major gamble. According to my reliable sources Cable and Wireless was warned against using the bMobile brand name for fear of homosexual connotations. It was felt that bMobile was far too close to ‘bman’, a Jamaican reference to a homosexual. It was felt that given the heightened homophobic nature of the market, this was a big risk. In order to counteract this perceived threat Cable and Wireless went out and contracted some of the most hardened anti-homosexual dancehall performers money can buy and embedded them in the new campaign. This apparently worked.

“There was even fear that Digicel would capitalise on this and unleash a guerrilla campaign that would have blown bMobile out of the water and killed the brand and product. All it needed was a DJ singing a song about the “bman phone” and that would be the end of bMobile. But I guess Digicel was not bloodthirsty and sought to win market share like a true Irish gentleman.

“My strategic branding approach would have been to give the “b” in the brand name a meaning, Cable and Wireless is known for its signature blue, this would have been a natural association, so brand it ‘blueMobile’ or abbreviated ‘bMobile’. That, I feel, would have far more strategic benefits and something to build on. ”

Demise of the Pre-paids
Mark, a 17-year old Kingston high school graduate remarked, “You would be surprised to know how popular and prevalent the “Please call and credit me” feature is among mobile phone users, especially my school friends and those under 25. As a matter of fact, we now use it to communicate, by typing a series of numbers to send a coded message. So when we do not have credit and cannot send text message we use the please credit me to send short messages.”

According to market watchers the Homephone Prepaid product seems to have suffered the same fate as the prepaid mobile service, where many of the owners do not have credit or very little call credit on their Mobile phones.

Sale of call credit for the Homephone product, introduced by Rodney Davis in an attempt to claw back the landline residential business, has not worked out as planned. Even though customers have applied for it, they have not bought the level of call credits required to support it. Also, this type of product requires intense customer support service. It seems that C&WJ did not provide this level of service and so customer complaints were fairly high.

The installation of Homefone prepaid phones has contributed to the plunge in first quarter profits, resulting in large increases in overall expenses, which rose 13 per cent. The sponsorship of ICC World Cup Cricket also impacted on first quarter figures.

VOIP cuts into overseas call revenues

The introduction of cheap low cost international phone calls, predominantly using the voice over Internet platform (VOIP) – Megaphone for example – has also impacted greatly on C&WJ international call revenues. With the rapidly growing availability of no-cost to low rates of JA$50 per day unlimited talk, VOIP has cut deeply into international call revenues for CWJ.

Culture resistant to change

But did Rodney Davis deserve to be fired?

“It depends on how you look at the problem”, one observer commented. “Cable and Wireless in Jamaican terms is an old company and it has it ways, grown and developed over the years coming from an arrogant monopoly position, to now having to operate in a free and highly competitive market place. That culture has proven very difficult and resistant to change and has been at the heart of the company problems. Executive and staff disaffection coupled with dislike was rife in the company and a lot of people rebelled against Rodney and the changes he was seeking to impose. This made his job, and the changes he wanted to effect, difficult to put in place. This was the situation faced by all his predecessors.”

Can Phillip Green make a difference?

This seems to be the question on everybody’s mind, maybe even Phillip Green, who describes his management style as “pretty conservative”, adding that he liked listening and thinking before acting.

Commenting on his “immediate” appointment, Green was quoted in the Jamaica Observer as saying, “The Caribbean, from a Cable & Wireless International’s perspective, is very important. It is a major part of its portfolio and Jamaica’s business is a big element of that. These moves to have me come in as the CEO were made to strengthen the management and profile of Cable and Wireless Jamaica.”

Financial and business analysts spoken to have all agreed that something is wrong with Cable and Wireless Jamaica and have asked the question, will another change in CEO fix it? Many agree that things are not likely to change, at least not in the next two or even three years. But does Phil Green have this much time to turn things around? Given the past tenure of his predecessors, this does not seem likely.

Green however is of the view that, “I am also a board member of Cable & Wireless International, so this was a natural process to bolster the profile of C&WJ. It will now get the right priority and will now become a more valuable part of our Caribbean portfolio.”

What exactly is Green proposing to do that the CEOs before him were unable to achieve?

He says he wants to strengthen the Company’s position as a full telecommunications service provider. A market position they have been seeking for some time now in an apparent attempt to differentiate themselves from Digicel.

“What am I looking to accomplish at C&WJ? Reliability, a trusted partner, value for money and service excellence.”

“There are three areas we want to focus upon,” he told the Jamaica Observer. “The first is customer service. Here we want to aim for excellence. The second is servicing the needs of small-and medium-sized enterprises. The third area is repositioning and strengthening the brand image of Cable & Wireless Jamaica. We have to make this company a true full-service provider of choice, servicing corporate, small businesses and consumer customers throughout the length and breadth of Jamaica.”

Asked how he intended to counter Digicel’s dominant position in the mobile market, Green said he wanted to only concentrate on Cable & Wireless’ customers and staff, and the value proposition for those who subscribe to its services.

“I’m focussed solely upon how we do it better for our customers,” he said. “The centrepiece of our business strategy will now be delivering service excellence and real value for money to people.”

“Team behaviour and everyone pulling at the one end of the rope is absolutely critical,” he said. “My management style will be focussed around what is best for the customers and how do we provide a better service. I have been impressed by C&WJ’s response effort to Hurricane Dean. It is that kind of team effort that is going to make us strong going forward.”

C&WJ under Green’s leadership will also be offering higher Internet speeds, more value-added products, specifically wrapping together mobile, fixed and Internet services to customers.

Not The Man For The Job
Comments in official company statements suggest that C&W International did not see Rodney Davis as the man to grow C&WJ’s operations going forward. A move which will require mounting a serious challenge to players like Digicel, Flow Communications and other upstarts in the telecoms sector; not to mention Carlos Slim’s America Movil, who has now acquired Miphone, (see Businessuite Vol.8, September 8, 2007, for full story) subject to regulatory approval.

“On behalf of the Board, I offer thanks to Rodney for bringing us this far,” said Len DeBarros, Chairman of the C&WJ Board.

It’s a pity Rodney did not get a chance to fulfil his goals. “I just want to stay focussed on my goals despite the challenges and take this organisation to greater heights in the telecom sector. We want to continue being number one and maintain that position.” He said in a recent press article. Will Phil?

Over to you Phil – JUST DO IT!

IN
Insert Picture.

Phillip Green is from Brisbane, Australia and has a passion for cricket. He has worked in the telecommunications industry for almost 30 years, the last 12 principally in Asia. He spent three years working in Washington in the United States for Cable & Wireless Global.

Green, 56, is a senior Cable & Wireless executive “with more than 20 years’ experience in a variety of diverse and challenging roles” in the telecommunications industry. He has worked in Asia, the United Kingdom, the United States, Japan and Macau. Jamaica will be his first Caribbean posting. Green comes to Jamaica from the Pacific, where he has worked since 2005. He has worked in Japan and the broader Asian region since 2002.

“I know I speak for the whole board of C&W Jamaica when I say that we are pleased to have secured Phil Green for this important role,” said Barros. “His depth of global experience and proven track record will enable us to drive the business forward.”

Green will remain a director of the C&WI Board and will report directly to Harris Jones, chief executive officer of C&WI.

“We are delighted to welcome Phil into our region,” said Hetherington, CEO, C&W Americas & Caribbean. “His experience and track record will help to further advance the Jamaica business in this competitive environment.”

Hetherington also acknowledged Davis for “his efforts and achievements to date, and in particular, for the work he has done in improving the reputation of our operation in Jamaica.”

OUT

Rodney Davis (pic)

Rodney Davis returned to Jamaica from Cable & Wireless Barbados where he was Chief Financial Officer. During his tenure he has strengthened the company’s business planning process, improved the quality and integrity of financial reporting and tightened the company’s credit management, achieving considerable savings. Prior to joining Cable & Wireless, Mr. Davis, a Jamaican national, had been the senior partner in charge at Ernst & Young’s Jamaica office since 2002. In that role he was responsible for the firm’s Corporate Finance practice where he worked closely with a number of leading Caribbean organisations to develop profitable strategies for their businesses.

At the time of his appointment, Cable & Wireless Executive Director of International Businesses, Harris Jones, had said: “I’m delighted that Rodney has agreed to join Cable & Wireless Jamaica as CEO. He faces a challenging market in which we’re making progress and I know that he and his team will rise to that challenge, accelerate our initiatives in broadband and mobile and continue to strengthen our offer to customers in Jamaica.”

Len de Barros, Chief Operating Officer, Cable & Wireless Caribbean, and Chairman of Cable & Wireless Jamaica, had added: “Rodney is joining Cable & Wireless Jamaica at a crucial time. Our markets are more competitive than ever and our customers are looking for innovative products and services, great value and first class customer care. Rodney brings a strong track record forged in C&W Barbados and in the Caribbean and Canadian financial sectors. I know he will be focusing on exceeding our customers’ expectations in every area and I wish him every success.”

Davis had commented, saying, “I’m delighted to be returning to Jamaica and to be bringing my family back here. I’m joining Cable & Wireless Jamaica at a critical stage and I look forward to building the success of our business to deliver an ever improving offer to our customers.”

Harris Jones had added: “I’d like to thank Jacqueline Holding for her commitment during her time with Cable & Wireless Jamaica. Under Jacqueline’s leadership the business has focused, in particular, on our two key services; broadband and mobile. C&WJ has increased awareness of our high-speed internet service and tripled broadband penetration. In mobile we’ve broadened our offer in value-added services such as payment flexibility, ring-tones, GPRS and SMS and substantially improved the coverage and capacity of our GSM network. Jacqueline also led our initiatives in up-skilling C&WJ staff and improving customer service.”

Related Topics:
Continue Reading
Click to comment
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Environment

Special Report – ESG Transformation in the Caribbean: How Local and Global Companies are Reshaping Corporate Responsibility and Achieving Impact

Published

4 weeks ago

on

January 26, 2025

By

As Environmental, Social, and Governance (ESG) factors gain traction worldwide, Caribbean companies are increasingly aligning with these principles to meet growing demands for transparency and responsibility. Globally, companies across industries are demonstrating the impact of ESG initiatives on their brand value, stakeholder trust, and even financial performance. In this evolving landscape, the Caribbean region is taking significant strides in its own ESG journey, often inspired by or collaborating with international corporations.

International companies have set benchmarks for comprehensive ESG integration that Caribbean firms are beginning to adopt. For example, Unilever’s “Sustainable Living Plan” and Microsoft’s carbon-negative pledge have illustrated how companies can drive social and environmental impact while strengthening business resilience.

Unilever’s initiatives, for instance, have led to substantial reductions in waste, water use, and greenhouse gas emissions, enhancing both operational efficiencies and brand perception. Likewise, Microsoft’s 2020 commitment to carbon negativity has inspired a wave of tech companies to adopt more robust carbon reduction strategies. Microsoft’s early achievements, including powering data centers with renewable energy, underscore how an ambitious ESG plan can benefit both environmental outcomes and investor confidence.

In the Caribbean, companies like Royal Caribbean Group are also setting ambitious ESG goals. The company’s “Seastainability” report highlights a multifaceted approach to ESG, such as implementing waste-to-energy systems and engaging in biodiversity projects. This not only demonstrates responsible environmental stewardship but also builds stronger connections with local communities, enhancing the brand’s reputation in the tourism industry

Similarly, Republic Bank in Trinidad & Tobago, in its 2024 annual report, outlined comprehensive measures to address climate risks, invest in social programs, and uphold corporate governance standards. This commitment to ESG aligns Republic Bank with global standards, fostering investor appeal and brand strength amid a shift towards responsible investment criteria.

For Caribbean corporate leaders, effective ESG integration requires actionable goals, ongoing monitoring, and transparent communication with stakeholders. To further align with international standards, regional firms can adopt practices like regular ESG impact assessments, clear data-driven metrics, and industry collaborations to address shared challenges.

According to PwC’s 2022 Caribbean Corporate Governance Survey, while over 60% of Caribbean firms acknowledge ESG’s strategic importance, board-level engagement on ESG remains limited, underscoring the need for greater governance oversight and education.

As Caribbean companies refine their ESG strategies, they are positioning themselves as competitive players in an increasingly responsible global economy. By adopting and adapting international best practices, these firms are not only driving positive change but also enhancing their appeal to a growing base of ESG-conscious investors, customers, and communities. This ESG shift is poised to shape the Caribbean’s corporate landscape, reflecting a larger global transformation that values sustainable and ethical growth. BS

 

Embracing ESG: Sagicor Group Jamaica’s Comprehensive Approach to Sustainability and Community

Sagicor Group Jamaica’s steadfast dedication to Environmental, Social, and Governance (ESG) principles reflects a core philosophy that permeates its vision, mission, and operational practices. Recognizing the role that corporate entities play in shaping a sustainable future, Sagicor has developed robust initiatives across each ESG component to drive value for stakeholders and contribute meaningfully to the Caribbean’s long-term resilience and prosperity.

Environmental Stewardship
Sagicor’s commitment to environmental sustainability is evident in its strategies for energy conservation, sustainable sourcing, and waste management. These initiatives are guided by a focus on reducing the company’s ecological footprint and supporting Jamaica’s transition to a climate-resilient economy.

Water Security Partnership: Recognizing the vulnerability of water resources, Sagicor has partnered with the government to ensure reliable water access across Jamaica. This collaboration aims to make water readily available even during droughts by 2025, underscoring a forward-looking approach to resource security.

Hybridized Work Environment: In line with global trends, Sagicor has adopted a hybrid work model to minimize its physical footprint. This strategy has significantly reduced the need for employee commutes, thus decreasing the company’s carbon emissions. Furthermore, office spaces have been outfitted with energy-efficient lighting, leading to a 75% reduction in energy consumption, which contributes to both environmental conservation and operational cost savings.

Digital Transformation: To further reduce its environmental impact, Sagicor has initiated a comprehensive digital transformation effort, aiming to minimize paper usage across the organization from 2024 to 2027. This shift not only reduces waste but also aligns with global best practices for sustainable business operations.

Eco-Waste Disposal: In collaboration with Recycling Partners of Jamaica, Sagicor Foundation has launched the Sigma Run Go Green Team to collect and recycle plastic waste from its events. This project has successfully recycled over 27,000 bottles, demonstrating Sagicor’s commitment to waste management and environmental responsibility.

Social Responsibility
Sagicor’s social responsibility framework centers on fostering community well-being, promoting social equity, and enhancing access to essential resources. Through targeted programs, the company supports marginalized communities and invests in sectors critical to Jamaica’s social and economic development.

Support for the Farming Community: Sagicor has created specialized financial products, such as agro-processing loans, to support farmers and fisherfolk. This initiative includes affordable healthcare options, reflecting Sagicor’s dedication to meeting the needs of those who often lack access to traditional financial services and healthcare.

Health and Education Investments: Over the past 26 years, Sagicor has invested more than J$600 million in Jamaica’s healthcare infrastructure, contributing to hospitals, children’s health, and disability support services. Additionally, Sagicor’s scholarship programs provide educational support at both tertiary and secondary levels, helping to foster a well-rounded, educated workforce for the nation’s future.

Empowering Women and Marginalized Groups: Sagicor offers entrepreneurial support programs and products designed to empower women and promote social equity. By providing family support leave policies and mentorship programs, the company cultivates a workplace environment that values inclusivity and diversity.

Governance Excellence
Upholding the highest standards of integrity and transparency, Sagicor’s governance framework is geared toward responsible, accountable leadership. This commitment is reinforced through rigorous policies, a focus on data privacy, and proactive cybersecurity measures.

Corporate Governance Structure: Sagicor has implemented a robust governance structure, with committees dedicated to investment, risk management, and IT oversight. This framework ensures vigilance across all operational areas, positioning the company to adapt to evolving risks and challenges. Furthermore, Sagicor’s property services are ISO certified, a mark of quality assurance and commitment to excellence.

Data Privacy and Cybersecurity: Data privacy is a priority for Sagicor, which has established a comprehensive Data Privacy Programme. This includes appointing a dedicated Data Protection Officer and adopting a “Privacy-by-Design” approach for product development. In addition, Sagicor’s cybersecurity framework adheres to global best practices, supported by board-approved policies and active threat monitoring.

Regulatory Monitoring and ESG Framework Development: Sagicor stays at the forefront of ESG regulatory changes, actively monitoring emerging standards and aligning its practices accordingly. The company is currently building out a dedicated ESG framework, which will further integrate sustainability into its corporate strategy, ensuring long-term alignment with global ESG priorities.

Conclusion
Sagicor Group Jamaica’s multifaceted ESG approach exemplifies a commitment to responsible business that goes beyond profit. By addressing environmental impacts, fostering social well-being, and adhering to ethical governance practices, Sagicor not only contributes to the Caribbean’s sustainable development but also strengthens its position as a leader in the region’s financial and social landscape. The company’s dedication to ESG is an inspiring model for other organizations seeking to integrate these essential principles into their operations and support a more sustainable, inclusive future for the Caribbean.

Supporting Sustainable Development Goals: ANSA McAL Group’s Progress in Sustainability

ANSA McAL Group, one of the Caribbean’s leading conglomerates, has consistently advanced its commitment to sustainable development. Since 2015, ANSA McAL has actively invested in green energy, circular economy initiatives, and equal opportunity policies, supporting several United Nations Sustainable Development Goals (SDGs). In recent years, its efforts have amplified, with initiatives across renewable energy, waste reduction, workforce safety, cybersecurity, and ESG integration.

Here’s a closer look at some key projects and the SDGs they advance.

Investing in Green Energy
Since 2015, ANSA McAL has led renewable energy initiatives, generating over 121,000 MWh of green energy in 2023. This aligns directly with SDG 7: Affordable and Clean Energy and SDG 13: Climate Action. The recent signing of a Memorandum of Understanding (MOU) with Kenesjay Green Limited at COP 28 reinforces the Group’s dedication to advancing private-sector green energy projects across the Caribbean, which will help reduce regional carbon footprints and mitigate climate change.

Circular Economy
ANSA McAL’s circular economy approach addresses SDG 12: Responsible Consumption and Production. ANSA Packaging’s impressive 91% increase in glass collection for recycling in Trinidad and Tobago exemplifies this commitment, as does the Beverage Sector’s redirection of over 2.4 million kilograms of spent malt grains from CARIB Breweries. By providing these materials to farmers as low-cost animal feed, ANSA McAL reduces landfill waste and supports local agricultural economies.

Caribbean Natural Capital Hub
In collaboration with The Cropper Foundation, ANSA McAL’s financial entities, ANSA Merchant Bank and ANSA Bank, launched the Caribbean Natural Capital Hub SME Grant Challenge in Trinidad and Tobago. This initiative fosters corporate awareness on environmental responsibility, supporting SDG 15: Life on Land. By introducing a technical working group to explore nature-based reporting, ANSA McAL contributes to preserving and enhancing biodiversity.

Safe Working Environment
Prioritizing a safe workplace, ANSA McAL has reduced workplace accidents by 38% since implementing Safe Systems of Work training. Over 2,400 employees completed this program, aligning the Group with SDG 8: Decent Work and Economic Growth by promoting safe, productive employment.

Enhanced Cybersecurity
ANSA McAL’s investment in cybersecurity, including a new Security Operations Centre (SOC) with Security Orchestration, Automation, and Response (SOAR) capabilities, underscores the Group’s commitment to SDG 9: Industry, Innovation, and Infrastructure. The Group’s 24/7 threat detection and incident response services exemplify how technology can strengthen resilience in an increasingly digital business environment.

Equal Opportunity and Culture Transformation
In addressing SDG 5: Gender Equality, ANSA McAL has assessed gender equity in remuneration across five major job levels, with pay differences favoring women in some cases. The Group’s culture transformation initiatives also aim to create an enriching, equitable work environment. By promoting diversity and inclusivity, ANSA McAL supports work-life balance and a culture of growth.

ESG Framework and Enterprise Risk Management
In 2023, ANSA McAL established a Group-wide Sustainability Committee, with representatives from all sectors, alongside the launch of its ESG framework. This framework, designed to integrate sustainability into corporate strategy, supports SDG 16: Peace, Justice, and Strong Institutions by fostering governance that is transparent and ethical. Furthermore, the ANSA McAL Playbook & Risk Standard defines the Group’s minimum risk management requirements, emphasizing safety, governance, and long-term impact.

As ANSA McAL builds on these efforts, the Group sets a benchmark for corporate responsibility in the Caribbean, aligning its strategic direction with international best practices and the UN Sustainable Development Goals.

 

Kingston Wharves Limited’s 2023 ESG Initiatives: Advancing Sustainability, Community Well-Being, and Environmental Protection

In 2023, Kingston Wharves Limited (KWL) reinforced its dedication to Environmental, Social, and Governance (ESG) practices by aligning with eight key United Nations Sustainable Development Goals (SDGs). As a crucial logistics hub in Jamaica, KWL uses its position and resources to create a sustainable impact, not only within its operations but also across the Newport West Port Community and Jamaica as a whole.

Commitment to Quality Education and Community Engagement
KWL is committed to empowering local communities through investments in Quality Education. The company supports early childhood education, youth development, and sports, recognizing that strong educational foundations contribute to long-term community resilience. By funding and participating in educational initiatives, KWL helps foster future leaders, workforce talent, and engaged citizens who can drive regional growth.

Promoting Decent Work and Economic Growth
One of KWL’s core beliefs is that every employee’s life should be positively impacted through their employment. The company’s Decent Work and Economic Growth strategy aims to nurture personal, professional, and community development by providing resources for self-sustaining growth. This commitment includes competitive wages, career advancement opportunities, and a supportive work environment that reflects the SDG spirit of “teaching a man to fish.”

Fostering Sustainable Cities and Communities
Recognizing the importance of safe and sustainable urban environments, KWL is dedicated to building Sustainable Cities and Communities. KWL actively promotes civic pride and environmental responsibility within the Newport West area, organizing and sponsoring clean-up and recycling initiatives. This commitment extends beyond its facilities to positively affect the surrounding areas, creating a healthy, dignified, and welcoming space for both residents and visitors.

Environmental Conservation: Life Below Water and Life on Land
Protecting marine and terrestrial ecosystems is central to KWL’s ESG mission. Through programs aligned with Life Below Water and Life on Land, the company has implemented measures to limit environmental impact. KWL spearheads plastic waste reduction, coastal clean-ups, and recycling projects to safeguard marine biodiversity. On land, KWL’s responsible sourcing practices and biodiversity initiatives strive to balance human activity with the preservation of natural habitats.

Gender Equality and Community Empowerment
KWL champions Gender Equality within its organization, providing leadership opportunities and supporting initiatives that empower all employees, regardless of gender. This inclusive approach strengthens the company’s organizational culture, fosters innovation, and demonstrates the impact of gender equity in driving sustainable corporate success.

Industry, Innovation, and Infrastructure Investments
KWL’s investments in Industry, Innovation, and Infrastructure reflect its commitment to long-term economic and technological advancement. The company continually invests in state-of-the-art technology and infrastructure to support its sustainability objectives and strengthen its operations. This focus on innovation includes integrating environmental and social governance practices into all business functions, reinforcing KWL’s role as a regional leader in responsible business practices.

Climate Action and Tracking Carbon Footprint
KWL has intensified its Climate Action initiatives, measuring and tracking greenhouse gas emissions from electricity and fuel use to reduce its carbon footprint. Through these ongoing assessments, KWL can implement data-driven strategies that contribute to climate change mitigation. All new construction plans incorporate fuel, energy, and water efficiency mechanisms, aligning with global standards for sustainable development.

Waste Management and Recycling
In 2023, KWL made significant strides in recycling and waste management, emphasizing the importance of Eco-Waste Disposal. The company introduced plastic bottle recycling within its daily operations, strategically placing recycling bins throughout its facilities. By collaborating with Recycling Partners of Jamaica, KWL organized two community clean-ups focused on reducing plastic waste and educated employees about the environmental impact of waste disposal. A plastic bottle recycling competition further engaged employees and vendors, reinforcing KWL’s commitment to environmental stewardship within the port community.

Conclusion
Kingston Wharves Limited’s 2023 ESG activities highlight a comprehensive and proactive approach to sustainable business practices. Through targeted initiatives in education, environmental conservation, community well-being, and infrastructure, KWL exemplifies a responsible corporate entity that seeks to contribute to both local and global sustainability goals. As KWL continues to embed the UN SDGs into its business operations, it sets a standard for Caribbean enterprises committed to achieving a sustainable and resilient future for the region.

 

GraceKennedy: Pioneering Environmental, Social, and Governance (ESG) for Sustainable Growth

GraceKennedy (GK) is undergoing a transformative integration of Environmental, Social, and Governance (ESG) principles into its operations. This comprehensive approach, rooted in the company’s corporate governance values, underscores GK’s commitment to sustainable growth and resilience within the communities it serves. Following the release of its first ESG statement in 2022 and an extensive ESG materiality assessment in 2023, GK established seven primary ESG goals. These goals are set to guide GK’s trajectory toward a sustainable future while meeting the expectations of stakeholders.

Integrity and Governance: Strengthening Trust and Transparency
Upholding the highest standards of integrity remains at the core of GK’s values. By December 2024, GK aims to establish a dedicated ESG hub on its website, where stakeholders can access the company’s ESG policies and reports. In addition to broadening its stakeholder engagement program, GK plans to publish a comprehensive Environmental, Social, and Governance Policy by 2025, creating a transparent platform for dialogue and ongoing feedback integration.

Employee Welfare and Diversity: Building a Respectful Workplace
As part of its commitment to a safe and inclusive work environment, GK strives to be an employer of choice. Key goals for December 2025 include launching a comprehensive Health, Safety, and Wellness Policy and implementing diversity training across all GK divisions. With a focus on enhancing employee engagement, GK’s workplace initiatives aim to create an atmosphere where each team member feels valued for their contributions.

Responsible Products and Services: Bolstering Consumer Confidence
GK has made responsibility and data privacy cornerstones of its business practices. The company plans to launch a Group Data Protection Policy by the end of 2023 and enhance cybersecurity awareness by 2026. Additionally, GK’s financial literacy program, GK Money Sense, is evolving into a broad-based training initiative designed to help customers make informed financial choices by December 2025. Aiming to support healthier lifestyles, GK has also committed to an accelerated product development strategy that reduces fat, salt, and sugar content across its portfolio by the same date.

Environmental Stewardship: Minimizing Ecological Impact
Reducing environmental impact is central to GK’s ESG agenda. By December 2024, GK plans to implement strategies to reduce virgin plastic use in its products and, by 2025, launch a comprehensive sustainability strategy for all GK entities. Expanding its greenhouse gas (GHG) measurement and tracking efforts, GK intends to implement GHG reduction strategies across all operations by 2026, underscoring the company’s commitment to climate resilience and sustainable resource management.

Community Engagement: Supporting Vibrant and Inclusive Communities
Improving community well-being is a top priority for GK. By 2024, GK will introduce an online CSR portal within its ESG hub, tracking community-focused activities across the organization. GK has also set ambitious targets for volunteer hours and investment, aiming for 4,000 hours and J$370 million annually in community development by 2030. These initiatives focus on expanding access to education, promoting healthy lifestyles, and fostering environmentally sustainable practices, reinforcing GK’s role as a pillar of community support and development.
The “We Care” Report: Mapping GK’s ESG Journey
In September 2023, GK published its inaugural ESG “We Care” report, which documents the company’s sustainability journey and outlines its ESG goals and targets. This report represents a milestone in GK’s commitment to ESG, providing a transparent account of its progress, priorities, and vision for the future.

Through these initiatives, GraceKennedy is not only enhancing corporate sustainability but also contributing to a resilient future for its stakeholders and the wider Caribbean community. GK’s commitment to ESG principles marks a forward-thinking approach that sets the stage for a legacy of sustainable growth and community empowerment.

Continue Reading

Businessuite News24

Why Caribbean Business Leaders Should Be Concerned About Declining Birth Rates and Population Shifts

Published

4 weeks ago

on

January 26, 2025

By

Caribbean countries are experiencing a decline in birth rates, a trend posing significant challenges for the region’s future workforce, economic vitality, and market demand.

This population shift is driven by several factors: lower birth rates, single-parent households, aging populations, migration, and evolving family structures. For Caribbean business leaders, these trends indicate a shrinking pool of young workers, potential reductions in market size, and shifts in consumer demand—each with implications for long-term strategic planning.

One concern for leaders is workforce sustainability.

With an aging population and declining youth demographics, the region faces a shortage of skilled labour. For instance, in St. Vincent and the Grenadines, the working-age population (25-64) is expected to decrease relative to retirees, signaling potential labour shortages that may hinder economic productivity and increase costs related to recruitment and retention. This demographic shift will also stress social security and pension systems, as fewer working individuals will be available to support a growing number of retirees.

Another key impact is the changing consumer landscape.

As birth rates decline, spending on youth-oriented goods, like children’s apparel and educational services, may decrease. On the other hand, an older demographic increases demand for healthcare, elder services, and financial planning products.

Companies in retail, healthcare, and financial services should consider how to pivot their offerings to cater to an aging population. This shift in demand highlights a growing need for business leaders to proactively adapt their services and marketing strategies to reflect demographic realities which also exacerbates population challenges in the Caribbean.

Skilled professionals often seek better opportunities abroad, creating a “brain drain” that impacts local innovation, healthcare, and education. This emigration trend not only reduces the talent pool but also places added pressure on businesses to offer competitive salaries and benefits to retain top talent.

While remittances from abroad do support local economies, these inflows are not sufficient to offset the lost human capital and may contribute to a reliance on external sources of economic stability.

Mitigation Strategies

To mitigate the impacts of a declining population and labour pool, Caribbean business leaders can take several steps:

Invest in Workforce Automation: Adopting technology and AI can help offset labour shortages and enhance efficiency.

Attract and Retain Talent: Offering competitive wages, flexible work arrangements, and pathways for career growth can help retain existing talent and attract skilled professionals who might otherwise seek opportunities abroad.

Develop Age-Responsive Products: As consumer needs shift with an aging population, tailoring products and services toward elder demographics—such as health, wellness, and retirement services—can help maintain demand.

Expand Markets: Companies can look beyond the Caribbean to more populous markets with younger demographics, like parts of Latin America, to diversify revenue.

Engage in Policy Advocacy: Collaborating with governments to support youth employment initiatives, incentivize family growth, and create skilled migration programs can address demographic challenges systemically.

Enhance Skills Training: Invest in upskilling programs to enhance productivity and adapt the existing workforce to high-demand roles, filling gaps left by emigration.

By anticipating these demographic shifts, leaders can future-proof their businesses, ensuring resilience in a changing Caribbean economy.

Continue Reading

Leadership Conversations

The Global Economy – The Economies In Which Businessuite Top 100 Companies Operated

Published

3 months ago

on

December 7, 2024

By

The Labour Force Is Growing Less Than Before, And This Will Weaken One Essential Engine For Growth.

Welcome to this press briefing. We have just released, and it is on the internet, our Annual Regional Economic Outlook for the Western Hemisphere. This is a bit like the WEO, but for the region. And here we have two important messages, two key messages.

Need To Rebalance Macroeconomic Policies In The Region

The first one is that there is a need to rebalance macroeconomic policies in the region. And the second one is the urgency to press on with structural reforms to boost potential output growth. And I will explain this. The monetary policy part of the first message, the rebalancing applies to several of the flexible exchange rate and inflation targeting countries in the region with different degrees of intensity. The second message, the urgency to deepen reforms for growth, really applies to almost all economies in the region.

Over the last few years, the region has successfully weathered a series of major shocks in the world economy. They showed resilience and they have adopted really macroeconomic policies in most countries that are at the top of the frontier of what we know. And so far, largely the region has stayed in the sidelines, on the sidelines of global geopolitical tensions.

Now growth in the region is moderating as most economies are operating back near their potential. What is concerning, however, growth in most countries is expected to return to its low historical average and this will not help with the region’s macroeconomic, fiscal and social challenges.

Overall, we expect growth in Latin America and the Caribbean — if we exclude Argentina, which has an important rebound next year, and Venezuela with its own dynamics — growth will moderate from 2.6 in 2023 to 2.2 in 2025, going through 2.6 also this year, 2024. So, we’re going back to the lower part of the 2 percent around these baseline projections. We see the risks to near-term growth tilted to the downside, partly reflecting global risks, including importantly the persistent geopolitical tensions.

Turning to inflation, in line with global trends and also reflecting the effect of tight policies, inflation has fallen markedly since the peak of mid-2022, and it is near the target in most countries. However, it is not a target almost everywhere.

In the region, I would say that the last mile of this inflation has been rather long. We expect to continue to see easing of monetary policy, but gradually on account of sticky services and inflation expectations not being perfectly re-anchored and also because inflation risks are generally tilted to the upside, reflecting basically commodity price volatility — the factors that I mentioned before of geopolitical risks and also new risks of fiscal slippages.

So, with the output gap and inflation gap mostly closed, what should policymakers do?

We think that they need to focus on rebuilding policy space and working on boosting potential growth – the messages I mentioned at the beginning. This means rebalancing the policy mix and pushing forward with structural reforms.

Let me elaborate a bit more on the policy mix. The current combination of macro policies is generally not everywhere, but generally tilted toward tight monetary policy while fiscal policy remains loose. Although the earlier tightening of monetary policy by the region’s central banks was essential to bring inflation down, inflation is now close to target while monetary policy rates remain elevated in many countries. At the same time, however, public debt levels are high and will continue raising if we do not have fiscal consolidation.

So, at this juncture it is necessary to rebalance policies, starting with strengthening public finances. Most countries have quite ambitious fiscal consolidation plans, but their implementation –so from plans to reality — has been in such a way that they have been pushed back. It is crucial in the region that these plans proceed without further delays to rebuild the buffers while protecting priority public spending, investment, and social spending. Strengthening the current fiscal rules is also important so they can deliver these consolidation objectives.

A timely implementation of this fiscal consolidation is critical not only for fiscal sustainability, but also for supporting the normalization of monetary policy and the credibility of the frameworks more broadly. With fiscal policy moving in the right direction, most central banks will be well placed to proceed with the monetary policy easing that we expect, while remaining on guard, of course, against risks of re-emerging price pressures.

The Urgency To Press On With Structural Reforms To Boost Potential Output Growth.

Let me now speak about the second point, that is the need to press with structural reforms and I will go from need to urgency. As mentioned before, medium-term growth is expected to remain subdued, reflecting longstanding unresolved challenges which include low investment and especially low productivity growth.

Also, the region is suffering shifting demographics that will slow growth further. The labour force is growing less than before, and this will weaken one essential engine for growth. The impediments for growth are many and country specific, some are more common, and that reality is confronted with an ongoing reform agenda that is thin in many countries. This could lead to a vicious cycle of low growth, social discontent and populist policies. So greater efforts to advance with structural reforms are needed to boost potential growth and raise living standards.

We see that strengthening governance is a priority that cuts across all areas of growth. This includes, for example, reinforcing the rule of law, improving government effectiveness, and, importantly, tackling crime more efficiently. Improving the business environment and public investment is also needed to increase overall investment. While reducing informality and making labour markets more attuned to more productivity gains is important. This part of the labour market is also really important for women labour force participation, because this is one of the sources to offset the demographic headwinds.

Positioning The Region To Fully Harness The Benefits Of The Global Green Transition And New Technological Advances.

These reforms will also be essential in positioning the region to fully harness the benefits of the global green transition and new technological advances. It is disappointing that until now mining investment, for example, in the region has not picked up despite the new opportunities for green minerals. This suggests, and I quote here, “we can do better,” as the IMF Managing Director stressed in her initial annual meeting speech, that also applies to our region.

From our side, through policy advice, capacity development, and financial support, we are ready to continue engaging, supporting countries in their efforts to strengthen their macroeconomic frameworks and increase economic resilience and growth opportunities.

Rodrigo Valdes, Director, Western Hemisphere Department (WHD), IMF
Presentation made at a press briefing for the Regional Economic Outlook for the Western Hemisphere.

Continue Reading

Businessuite News24

Transforming Vision Statements: Choosing the Right Vision for the Right Time

It’s not that you lack vision yourself—after all, your success is built on envisioning possibilities and pursuing them. But translating that personal energy into an organizational vision that resonates with others is a different challenge altogether. Should you simply rewrite the vision statement, or is there a better way to achieve meaningful impact?

Published

3 months ago

on

November 29, 2024

By

As a leader, you recognize the importance of inspiring your team with a compelling vision. Yet, you may find that your company’s vision statement, despite its lofty aspirations, fails to inspire meaningful change. How can you craft and communicate a future that genuinely motivates your team to take action?

The Challenge of an Inherited Vision Statement

Imagine you’re a newly promoted CEO. Among the many responsibilities you’ve inherited is a vision statement. While it might look passable on paper, it has yet to inspire you, let alone your team, to embrace new behaviors or think differently.

It’s not that you lack vision yourself—after all, your success is built on envisioning possibilities and pursuing them. But translating that personal energy into an organizational vision that resonates with others is a different challenge altogether. Should you simply rewrite the vision statement, or is there a better way to achieve meaningful impact?

Here’s a fresh approach to this age-old leadership dilemma.

Understanding How Vision Truly Works

A powerful vision fundamentally transforms how we experience the present. Think about the difference between a Friday afternoon in the office and a Sunday afternoon. The former often feels better—not because of the immediate circumstances but because of our anticipation of the weekend. This sense of future anticipation changes how we perceive the present moment.

That’s the kind of shift you want to inspire in your stakeholders. You want them to feel energized by the future you’re describing, just as you are. The hallmark of success is when individuals take initiative, make sacrifices, and go beyond their job descriptions—not because they’re told to, but because they’re inspired to.

But here’s the hard truth: a traditional vision statement alone cannot deliver this kind of transformative impact.

Rethinking Vision: Introducing the Three Levels

Most organizations begin with what can be termed a “Level 1 Vision”: a concise, polished statement, often a few sentences or paragraphs, that attempts to summarize the future. However, these statements are frequently vague, generic, and uninspiring. They might sound nice but leave people either indifferent or skeptical. Some may even feel the statement describes what the organization has already achieved, rendering it irrelevant.

A better approach is to think of the Level 1 Vision as just the “headline” of a more detailed vision framework. Here’s how to expand it.

Building a Level 2 Vision

To create a meaningful vision at this level, gather your leadership team for an offsite retreat and focus on a specific long-term horizon—typically 15 to 30 years in the future. Work together to describe a vivid picture of what success looks like at that time. This Level 2 Vision goes beyond a brief statement; it provides several pages of detail, potentially including visuals, videos, or other media to bring the future to life.

The key here is collaboration. By involving your leadership team, you not only create a shared sense of ownership but also tap into a wider pool of creativity and ambition. A well-crafted Level 2 Vision should reflect the aspirations of your entire C-suite, energizing everyone involved.

However, many organizations stop at this stage. While the Level 2 Vision is more compelling than a simple statement, it often becomes an overwhelming list of aspirations. Without prioritization (and reduction), it risks becoming unrealistic, leading to cynicism rather than inspiration. Some employees may even dismiss it as “the CEO’s wish list.”

To avoid this pitfall, you must take the next step.

Evolving to a Level 3 Vision

The “Level 3 Vision” transforms lofty aspirations into a credible, actionable plan. This involves narrowing down the vision to a focused set of achievable targets supported by a strategic roadmap.

This process requires tough conversations. Your leadership team will need to negotiate priorities, confront trade-offs, and align on a clear path forward. Engaging a skilled facilitator can help ensure these discussions are productive and lead to consensus.

The outcome is a vision that stands apart from your competitors. A Level 3 Vision includes:

– Specific, measurable results: Clearly defined goals with tangible metrics.

– Milestones: Key achievements along the journey to the ultimate vision.

– A strategic pathway: A roadmap showing how to get from the present to the desired future.

– Team alignment: Full buy-in from your leadership team, ensuring commitment to execution.

With this, your vision evolves from an abstract dream into a realistic plan that inspires action.

Communicating Across the Three Levels

Once your Level 3 Vision is established, it’s crucial to communicate it effectively. Each level of vision—Level 1, Level 2, and Level 3—has a role to play depending on your audience and context.

For example, a Level 1 Vision offers a concise, memorable summary. Think of Vision 2030 Jamaica’s tagline: “…the place of choice to live, work, raise families and do business.” It’s short, evocative, and easy to recall.

A Level 2 Vision, on the other hand, provides more depth. Vision 2030 Jamaica expands on its tagline with four National Goals and 15 Outcomes, offering stakeholders a richer understanding of the country’s aspirations.

Finally, a Level 3 Vision delivers the detailed roadmap necessary to ensure credibility and guide execution.

By mastering these three levels, you can tailor your communication to inspire stakeholders while maintaining clarity and focus. Avoid the mistake of using the wrong level for the audience or situation, which can lead to confusion or disengagement.

Conclusion

Transforming vision statements into actionable, inspiring frameworks requires more than polished language. By embracing a three-level approach, you can align your team, inspire stakeholders, and chart a credible path to the future. Choose the right level of vision for the right moment, and you’ll not only communicate your aspirations—you’ll make them a reality.

Intrigued? Interested in more? Visit the JumpLeap Long-Term Strategy Podcast and Newsletter.

Francis Wade
Jump Long-Term Newsletter and Podcast
http://blog.fwconsulting.com, http://fwconsulting.com

Continue Reading

Businessuite News24

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

Published

3 months ago

on

November 23, 2024

By

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

Continue Reading

Trending

0
Would love your thoughts, please comment.x
()
x