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

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16 years ago

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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.”

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Businessuite News24

Teachers Make Better Strategic Planning Facilitators!…..Ronnie Sutherland

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1 month ago

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March 15, 2024

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In the nuanced field of strategic planning facilitation, success hinges not just on the facilitator’s ability to strategize but, crucially, on their capacity to convey complex concepts in an accessible manner. Drawing from over ten years of experience in secondary and tertiary education, I’ve discovered that teaching skills are beneficial and essential for facilitating effective strategic planning sessions, especially in medium-sized companies where strategic planning knowledge can vary widely among senior managers.

The challenge many facilitators face is bridging the gap between high-level strategic concepts and the practical understanding of their participants. This is where prior teaching experience becomes a significant advantage. Teaching has honed my ability to break down complex ideas into relatable, understandable chunks, making strategic planning concepts more accessible to all participants, regardless of their initial level of understanding.

This skill is invaluable in strategic planning sessions where diverse knowledge levels can otherwise create barriers to engagement and understanding. A facilitator with a background in teaching is equipped with techniques to assess comprehension, adapt explanations to meet the audience’s needs and engage participants in a manner that fosters meaningful dialogue and collaboration. These capabilities ensure that strategic planning sessions are not just meetings but learning experiences that empower participants to contribute more effectively to the planning process.

Moreover, facilitators with teaching experience are adept at creating an inclusive environment that encourages questions and fosters a deeper level of engagement among senior managers who might otherwise be hesitant to admit their gaps in understanding. This approach enhances the quality of strategic planning outcomes and builds a culture of continuous learning within the organization.

In my practice, leveraging teaching strategies such as storytelling, real-world examples, and interactive discussions has proven to be a game-changer. These methods clarify strategic planning concepts and make sessions more engaging and memorable, facilitating a deeper and more practical understanding of strategic plans.

In conclusion, the intersection of teaching and strategic planning facilitation offers a powerful blend of skills that can significantly enhance the effectiveness of strategic planning sessions. It turns out that the ability to educate is as critical as the ability to strategize. As organizations seek to navigate complex strategic landscapes, the value of facilitators with teaching experience cannot be overstated. Our unique skill set not only demystifies strategic planning but also equips senior managers with the knowledge and confidence to drive their companies forward.

This article emphasizes the importance of teaching skills in strategic planning facilitation and how it can be a game-changer for businesses looking to enhance their strategic planning processes.

 

 

 

 

Ronnie Sutherland is a strategic planning expert and the managing partner at Strategic Solutions Limited, which offers strategic planning facilitation services to guide companies’ strategic planning processes. Contact. Email: ronnieg.sutherland@gmail.com

 

 

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Businessuite News24

Are Your Strategy, Structure And Reward System Aligned?…….Ronnie Sutherland

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1 month ago

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March 12, 2024

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Organizations are constantly pressured to adapt and innovate to remain competitive in an era of rapid technological advancements and shifting market dynamics. Dr. Jay Galbraith of the Marshall School of Business, University of Southern California, and author of “Designing Organizations,” provides a striking diagnosis of a common ailment plaguing many businesses today: “Too many organizations have tomorrow’s strategy, today’s structure, and yesterday’s reward system.” This statement encapsulates the misalignment between what companies aspire to achieve, how they are organized to achieve it, and how they motivate their workforce to drive success.

At the heart of this misalignment is the forward-looking nature of strategic planning contrasted with the often static nature of organizational structures and reward systems. Companies are adept at envisioning future market trends and positioning themselves to capitalize on these opportunities. However, the structures within which they operate and the mechanisms by which they incentivize their employees frequently lag, anchored in models that were perhaps effective in the past but are now increasingly obsolete.

Strategy for Tomorrow Requires Structures and Rewards for Tomorrow

For a strategy to be effectively implemented, it requires an organizational structure that is flexible, dynamic, and aligned with strategic objectives. Traditional hierarchies and departmental silos can impede communication and decision-making, slowing down an organization’s ability to respond to market changes. Adaptive structures, such as those based on networks or teams that can be reconfigured as needed, support the rapid execution of strategic initiatives.
Equally important is the evolution of reward systems. Yesterday’s rewards, often focused on individual performance and short-term achievements, may not effectively motivate the behaviours needed for long-term strategic success. Modern organizations must design reward systems that promote collaboration, innovation, and alignment with the company’s strategic goals. This might include recognizing team achievements, investing in professional development, and tying compensation to the organisation’s strategic objectives.

Bridging the Gap

Continuous evaluation and alignment are the keys to bridging the gap between strategy, structure, and reward systems. Organizations should be visionary in their strategic planning and agile in their organizational design, ensuring that structures and systems evolve in tandem with strategic goals. This requires a commitment to organizational learning and development, where feedback mechanisms are in place to assess the effectiveness of structures and rewards in achieving strategic objectives.

Leadership plays a crucial role in this process. Leaders must be catalysts for change, championing and facilitating the alignment between strategy, structure, and rewards. This involves communicating the strategic vision throughout the organization, fostering a culture that embraces change, and ensuring that the organizational design and reward systems are continuously evaluated and adjusted to support strategic objectives.

Conclusion

Dr. Galbraith’s observation serves as a timely reminder for businesses navigating the complexities of the modern marketplace. Success in this environment demands a visionary strategy and an organizational design and reward system that is in lockstep with strategic objectives. By aligning tomorrow’s strategy with today’s structure and reward system, organizations can position themselves to achieve sustainable competitive advantage and long-term success.

Ronnie Sutherland is a strategic planning expert and the managing partner at Strategic Solutions Limited, which offers strategic planning facilitation services to guide companies’ strategic planning processes. Contact. Email: ronnieg.sutherland@gmail.com

 

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Businessuite Women

The Success Of Our Financial Markets Is Intertwined With The Success Of This Collaboration.

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2 months ago

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February 27, 2024

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The Recent Context: In reflecting on recent industry discussions, particularly in the aftermath of the Jamaica Stock Exchange Regional Conference on Investments and the Capital Markets, a common thread emerged—a resounding call for education, training, and continued professional development. It underscores the dynamic nature of our financial landscape and the pivotal role that collaboration between accountants and regulators plays in ensuring a robust and trustworthy financial ecosystem.

Today I will share my thoughts on the collaboration between accountants and regulators, a crucial alliance that stands as the bedrock of investor confidence and the integrity of our financial markets. My thoughts are by no means new to you but are worthy of repeating. In the intricate dance of numbers and regulations, regulators and accountants must join forces not only to maintain the equilibrium of financial systems but to safeguard the very essence of investors’ trust.

The Unsung Heroes – Accountants and Regulators: Before delving into the heart of my presentation I would also like to take a moment to recognize who I believe are the unsung heroes in our financial narrative—accountants and regulators. Both work diligently, often behind the scenes, to uphold the integrity and transparency of our financial markets. It is this collective effort that enables investors to make informed decisions with confidence or to have a recourse when things go wrong which sometimes it does.

Global Trust in Accountants: Accountants serve as custodians of financial truth. This meticulous work as you know involves not just crunching numbers but ensuring that financial records are accurate, transparent, and adhere to the ever-evolving accounting standards. It is through this dedication that investors can rely on the information presented by companies. As the world at large becomes more and more wary of business operations, it is noteworthy that, global perceptions of chartered accountants have undergone a significant transformation. Recent studies indicate a surge in trust of investors during times of economic turbulence and uncertainty. Chartered accountants have emerged as the most trusted financial professionals, with increased recognition of their role in ensuring transparency and confidence. This is because of standard setting, adherence to standards and regulations and the willingness to be proactive and cooperate and collaborate with stakeholders including other standard setting bodies, government and regulatory bodies.

Similarly, in our local context, the Institute of Chartered Accountants of Jamaica plays a pivotal role in monitoring and upholding the standards of integrity, objectivity, professional competence, and confidentiality. The trust bestowed upon accountants in our jurisdiction mirrors the global trend, reflecting the adherence to these high standards.

In tandem with accountants, regulators act as the vigilant overseers of financial markets. Regulators craft and enforce the rules that govern fair play, market transparency, and investors protection. Regulators are the guardians of market integrity, working tirelessly to detect and prevent fraudulent activities, ensuring a level playing field for all participants. There is therefore cross functional activities between regulators and accountants for the primary purpose of protecting investors.

There must be the Collective Will to act as ‘trustee’ for investors. At the heart of our financial stability lies the collaboration between accountants and regulators. This partnership extends beyond professional duties—it is a shared commitment to act in the public interest, safeguarding the investments and interests of our stakeholders, particularly investors. We saw this played out during the COVID period between ourselves, ICAJ and the FSC where we understood that balance between investors receiving information and the other issues that prevailed. Both Accountants and regulators must work to ensure the strength and proper functioning of our capital markets. This collaboration is indispensable, particularly as investors rely heavily on credible financial information to make sound decisions.

The Role of Accountants: Let’s not underestimate the pivotal role that accountants play in this process. Whether as CFOs, internal auditors, or line and staff accountants, this ability to people in this profession to provide honest and accurate information in a timely manner and in keeping with international best practices, and other legal and regulatory frameworks is the linchpin for attracting capital, maintaining and preserving capital of investors. High-quality and timely information, meticulously provided by accountants, is the lifeblood of our capital markets.

Success Stories: Our markets stand strong due to the active and open dialogue between accountants and regulators. Even at the Exchange, the Regulatory and Market Oversight Division and the ICAJ have active dialogue on market developments, interpretations, and standards that are aimed at ensuring that investors receive the best reports. This collaboration between accountants and regulators has yielded success stories, with oversubscribed offers and successful capital raises, exemplifying the effectiveness of our financial ecosystem. In 2023, we witnessed a commendable mobilization of $18.74 billion in capital through IPOs, APOs, and private offers facilitated by the collaborative efforts of CFOs, accountants, and auditors. The connection here is that without accurate, credible financial information investors would be hard pressed to invest in the capital markets.

Navigating Challenges – A Testimony to Collaboration: The true test of collaboration is evident during challenging times. The recent global pandemic, COVID-19, posed unprecedented challenges, requiring quick and effective responses. The collaboration between regulators and accountants ensured that despite the turmoil, issuers remained compliant, demonstrating the resilience and adaptability of our financial ecosystem.

Adaptability has to be the hallmark of accountants and regulators. Your Agenda seeks to Navigate the Evolving Landscape but even as we delve into the agenda for this workshop, the landscape of the capital markets is evolving rapidly. New products, new services, and even new schemes aimed to mislead crops up daily giving accountants and regulators cause to work to find solutions for disclosures or enhancement of standards to ensure that investors are adequately protected.

Your discussions will undoubtedly cover an array of topics, from reporting methodologies to the introduction of sophisticated products and services in this digital age. The ICAJ and members, by having a robust knowledge of applicable laws and regulations, will play a pivotal role in shaping this landscape.

The Future of Reporting: Looking ahead, our focus must extend to the future of reporting. As we build out new and more sophisticated products and services within this digital age, the ICAJ and its members are at the forefront of ensuring that reporting standards are not just benchmarked but are also easily understood, quantifiable, and measurable. This commitment is essential for investors to appreciate and value their investments.
Crafting Rules and Standards: Collaboration between regulatory bodies and the accounting profession is paramount. Rules and standards must be crafted, enforced, and reported on to remove unnecessary barriers to trade. The information shared and the structures in place will enhance trust in the business climate, aiding investors in making informed decisions about capital allocation.

Preserving the Financial Reporting Supply Chain: In closing, let us acknowledge that the accounting fraternity serves as the vigilant watchguard for the rules and regulations set by regulators. This role becomes even more critical in an age of rapid changes. As we seek to keep pace with global regulatory requirements, active collaboration on matters relating to data protection, new financial instruments valuation, and sustainability reporting is an imperative.

A Call for Collaboration: In essence, our success hinges on preserving what we can aptly call the Financial Reporting Supply Chain. Throughout all stages of this chain, from setting parameters for financial statements to enforcing compliance, the accounting fraternity must ensure that the last link, the investors, is protected.

Closing Thoughts: There has never been any doubt in my mind that the accounting fraternity is integral to these stages, adding trust to the entire process. As we collectively navigate the challenges and opportunities that lie ahead, let us reaffirm our commitment to collaboration, transparency, and the shared goal of benefiting investors. The success of our financial markets is intertwined with the success of this collaboration.

Speech by Dr. Marlene Street Forrest, Managing Director of the Jamaica Stock Exchange given at the Annual International Financial Reporting Standards (IFRS) Virtual Workshop organized by the Institute of Chartered Accountants of Jamaica (ICAJ), February 2-3, 2024.

Source: https://www.jamstockex.com/dr-marlene-street-forrests-speech-at-the-ifrs-virtual-workshop-2024/

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Leadership Conversations

Business Strategy Is More Like Playing Golf Than Playing Chess.

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2 months ago

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February 27, 2024

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It is almost second nature for business managers to be laser-focused on the competition. I once worked at a fairly large company where the chairman was obsessed with what the competitors were doing. His evaluation of his team of managers depended on how much they knew about competitor activities. I recall one meeting when I tried to get the Chairman to understand that our narrow focus on competitors distracted us from looking towards the future, and it almost got me fired.

Having worked for many years in senior-level leadership positions in some of Jamaica’s largest and best-run companies across several business sectors, I was privileged to see the various perspectives that came to bear on strategy decisions. Early in my career, I believed business strategy was akin to playing chess. As I became more familiar with the intricacies of strategic planning, I began to see that business strategy is more like playing golf.

I have found that drawing a parallel between golf and business offers a compelling perspective on strategy and focus. In golf, the essence of the game lies not in direct competition with other players but in understanding and navigating the course itself. Each hole presents its challenges, from bunkers and water hazards to the length of the fairway and the wind’s direction. The golfer must assess these factors, adapt their strategy, and execute their shots precisely while maintaining a calm and focused demeanour. The goal is to minimize strokes, not to outplay the competitors directly.

Similarly, in business, the “course” can be understood as the company’s operating environment, encompassing market dynamics, consumer trends, regulatory landscapes, and technological advancements. Like in golf, business success requires a deep understanding of this environment and navigating its complexities effectively. Companies must assess how these external factors will change and adapt their strategies accordingly. This might involve innovating new products, entering or exiting markets, adjusting to regulatory changes, or leveraging new technologies.

Moreover, just as a golfer adjusts their club selection and approach with each shot, considering the distance, wind, and hazards, businesses must be agile, constantly evaluating their position relative to the evolving market and adjusting their strategies to maintain or gain competitive advantage. The focus should be on playing the “course” to the best of their ability rather than fixating on the competition.

In golf and business, success comes from understanding and adapting to the environment, making strategic decisions based on this understanding, and executing plans precisely. It’s about playing the course, not the competition. This approach encourages a proactive, rather than reactive, stance, ensuring that a business, like a golfer, is well-equipped to navigate the challenges ahead and seize opportunities for success.

Ronnie Sutherland is a strategic planning expert and the managing partner at Strategic Solutions Limited, which offers strategic planning facilitation services to guide companies’ strategic planning processes. Contact. Email: ronnieg.sutherland@gmail.com

https://strategicjamaica.com/

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Influential Caribbean Leaders Shaping the Future

Published

3 months ago

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January 30, 2024

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The Caribbean region is known for its vibrant culture, diverse communities, and increasingly, its dynamic leadership on the global stage. As we navigate through the complexities of the 21st century, several leaders stand out for their contributions to their nations and the broader Caribbean community. These visionaries are not only addressing the immediate challenges their countries face but are also laying down the groundwork for a prosperous and resilient future.

Trailblazing Political Leaders

In the realm of politics, the Caribbean has seen a number of influential figures who have transcended local boundaries to make a mark internationally. These leaders are characterized by their innovative approaches to governance, commitment to sustainability, and advocacy for social justice. Their leadership transcends politics, impacting economic policies, social reforms, and environmental conservation efforts.

 

 

 

 

 

One such leader is Mia Mottley, the Prime Minister of Barbados. Under her leadership, Barbados has made significant strides in addressing climate change, advocating for small island developing states on the global stage, and pushing for economic innovation. Mottley’s bold decision to transition Barbados into a republic, moving away from colonial legacies, signifies a new era of self-determination and national pride for the Caribbean island.

 

 

 

 

 

In Saint Vincent and the Grenadines, Prime Minister Ralph Gonsalves has been a steadfast advocate for regional integration and economic diversification. His tenure has seen a focus on education reforms, infrastructure development, and bolstering the agricultural sector to ensure food security and sustainability. Gonsalves’ commitment to Caribbean unity and resilience serves as a model for collaborative regional efforts.

 

 

 

 

 

Another notable leader is President Irfaan Ali of Guyana. Taking the helm of one of the fastest-growing economies in the world, Ali is navigating Guyana’s recent oil discoveries with an eye on sustainable development and equitable distribution of wealth. His presidency marks a pivotal moment for Guyana and the Caribbean, as the nation explores ways to leverage its resources while promoting environmental stewardship and inclusivity.

Social Visionaries and Economic Strategists

Beyond traditional politics, the Caribbean is home to leaders who are pioneering change in social and economic spheres. These individuals are leveraging technology, cultural capital, and international partnerships to transform their societies and, by extension, the region.

 

 

 

 

 

 

Prime Minister Roosevelt Skerrit of Dominica is leading his island’s efforts to become the world’s first climate-resilient nation following the devastation of Hurricane Maria in 2017. Skerrit’s vision of a “Nature Island” encompasses aggressive reforestation initiatives, investment in renewable energy, and construction of climate-resilient infrastructure, setting an example for sustainable development worldwide.

 

 

 

 

 

 

 

Dr. the Honourable Keith Rowley, Prime Minister of Trinidad and Tobago, is focused on economic diversification to ensure long-term prosperity. Recognizing the challenges of an energy-dependent economy, Rowley is promoting investment in manufacturing, tourism, and technology sectors. His approach to governance emphasizes stability, innovation, and preparing the nation’s workforce for the future.

 

 

 

 

 

 

 

The Honourable Andrew Holness, Prime Minister of Jamaica, is championing education reform and digital transformation as pillars for national development. By investing in digital infrastructure and education, Holness aims to position Jamaica as a leader in technology and innovation in the Caribbean. His commitment to harnessing the power of technology for social and economic advancement is shaping a new vision for Jamaica’s future.

Mia Mottley’s leadership has positioned Barbados as a strong advocate for climate action.
Prime Minister Ralph Gonsalves champions Caribbean unity and resilience.
President Irfaan Ali is steering Guyana towards sustainable wealth distribution.
Roosevelt Skerrit’s commitment to making Dominica a climate-resilient nation is globally recognized.

These leaders, among others, exemplify the diverse and forward-thinking leadership emerging from the Caribbean. Amidst challenges such as climate change, economic vulnerability, and social inequality, they are crafting innovative solutions that not only address immediate concerns but also lay the foundation for a sustainable and prosperous future. By doing so, they are not only impacting their nations but also contributing to the Caribbean’s collective identity on the global stage.

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