Do Well by Doing Good!

NBT Brunei, one of the biggest motor vehicle distributors in Brunei, has been the market leader in the auto industry in Brunei Darussalam for the last 29 years. According to Ninan Chacko, NBT Managing Director, NBT’s dominance of the local market is not only based on goodwill, friendship, honesty and trust alone: It is all these, plus their singleminded dedication to quality assurance and its actual delivery. SME Bulletin speaks to Ninan Chacko on the issue of the Environment, Corporate Social Responsibility and employee relation strategy.

NBT is seen to be taking a leadership role in caring for the environment. Why the environment?

There are so many reasons. The whole world is one big ecosystem, so, damaging or destroying onepart of it will have an impact on other parts. For example, the unusually heavy rains and flooding in Tutong and the Belait districts (December 2010/January 2011), can in fact, be at least partly be explained, by global climate change caused by clearing of forests to make way for farms and air pollution with carbon dioxide that causes global warming.

In ecological terms, nature is a very delicate system of balances. The extinction of a bird which eats mosquitoes could result in an increase in malaria or dengue fever. So, we will be affected as well if nature is destroyed. In addition, don’t forget that we need trees to convert the CO2 into life -sustaining oxygen. The auto industry has often been accused of being damaging to the environment, especially through excessive CO2 emissions. Therefore, NBT, as well as our principals INCHCAPE PLC and TOYOTA Motor Corporation are very anxious to take positive steps even when there is no official compulsion to do so (at least, for the moment, in Brunei Darussalam).

Finally, being a responsible 21st century business operating in the Green Heart Of Borneo, it is also our moral responsibility to be fully committed to saving the environment, so that future generations of Bruneians will have a green future to look forward to.

Continue Reading

If you have been to any Louis Vuitton store, you would have noticed that there is no price tag anywhere to be found on the display of the bags. You can tell instantly an experienced attendant from a new one by their ability to provide information about the bags such as the price, the history, the designers, and so on.

Most Louis Vuitton staff would have no problem in sharing with you intimate details about each product because the chances are that if you were working for the company, you would already be a huge fan of the Louis Vuitton brand. I was exposed to many inside stories of Louis Vuitton because my wife, Deon, used to work there as a part time Sales Associate in its Perth store for three years.

The income for retail associates is the lowest amongst all the professions regardless where they are in the world, and what company they work for. How, then, does this iconic brand expect its low-income staff to carry out the excellent Louis Vuitton service the company expects?

The answers lie in the caliber of the people working there! If you looked into the background of the people in the front line at a typical Louis Vuitton store, you would be astonished by the capability and diversity of their strength! Take Deon’s store, for example; there was Onkei, the reputable local fashion designer who forfeited her business to work there; Sarah, a previous supervisor from Four Season Hotel in Paris; Linda, a practicing medical doctor; Annabelle, an actress from Beijing; Yuka, the culinary expert cum the most detailed orientated leader; Deon, the professional musician. There was even a candidate who migrated from Perth to Sydney, just for the position of a front line opening in the Australian head quarters!

The common denominator between these people is that they all had an obsession for Louis Vuitton. Imagine when you have people on the front line with such enthusiasm for your products; memorizing product information becomes easy for them, never mind the level of energy that the staff radiates when they talk about your products!

Baiduri Bank is an important entity to look out for for Entrepreneurs for two main reasons; firstly, it has one of the most comprehensive and tailored products designed with the SMEs in mind. Secondly, Baiduri Bank is an embodiment of local success story backed by impressive scores of awards and track record.

Baiduri Bank was recently awarded Brunei’s Company of the Decade by World Finance Magazine. According to the esteemed magazine, “the Company of the Decade” awards represent the supreme accolade for companies that have performed exceptionally and proven themselves as dynamic forces in their industry over the past 10 years.” In 2010, it was named the Bank of the Year for Brunei by The Banker magazine; the bank swept the same award SEVEN times in the last nine years. The group’s profit before tax in 2009 was a stunning 65% increase over the year before, amounting to BND 56 Million. Total assets of the group at the end of 2010 stood at BND2.7bn , ranking the group among the top financial institutions in Brunei.

We tap into the mind of Pierre Imhof, Baiduri Bank’s General Manager on their support for the Brunei SMEs, Baiduri Bank’s secret of success, management wisdom plus the pocket of opportunities in the Brunei Market.

Baiduri Bank has been cited to play an active role in the development of SMEs in Brunei in 2010. One of the key initiatives was the co-sponsorship of Local Business Development conference organised by Asia Inc Forum. Why the emphasis on SMEs?

Being a local bank ourselves, we have made it our commitment to nurture and develop locals, and this includes individuals and local businesses. Our partnership in the Asia Inc Forum LBD is one of several programmes we are involved in that allow us to fulfill this objective. Besides the LBD, we also participate in two other programmes with similar objective. First is Brunei Shell’s Local Business Development Coaching Scheme Initiative (CSi) for Shell contractors. Second is a financing programme held in collaboration with the MIPR, where we offer financing to locals SMEs under the Enterprise Facilitation Scheme and the Micro-Credit Scheme. We place emphasis on SMEs for two main
reasons; One, the majority of local businesses fall under this category.

The other is because we see it as our social obligation to the country to nurture and develop local businesses, and it is an area where we are well equipped in.

Tell us about your credit facilities extended to SMEs.

Developing our relationship with SMEs has always been a priority to us. Baiduri Bank is well positioned with various products designed specifically with SMEs focus.

Our flagship products that are immensely popular amongst the SMEs are as follows:

Micro-Credit Scheme and Enterprise Facilitation Scheme, both of which are endorsed by and in collaboration with MIPR. Others include; SME Financing, Corporate Banking Facilities tailored made to suit individual business requirements and a series of facilities that makes doing business easy; like guarantees, letter of credit and business internet banking.

It is interesting to note that of the applicants who successfully applied for the Micro- Credit Scheme and Enterprise Facilitation Scheme, more than 70% of them went on to do well with their business. Consider the fact that only One in Five people who starts their business will actually survive, this is indeed an encouraging statistic! Continue Reading

The Future of Entertainment in Brunei

One cannot help but feel optimistic, when you speak to Pg Farhana Pg Hj Bujang (Also known as Nana) of MagicMedia about the prospects of the Entertainment Industry in Brunei. The Executive Producer of Brunei’s latest and most exciting video production agency is one with a solid track record and validation from industry leaders both locally and abroad to back up her words. Which is why, her vision is not one to be taken lightly.

Within a short span of 9 months, the former 14 year veteran producer of RTB, age…(only young) has already recorded some high-profile productions for the international stage. Amongst them, a short video for Brunei Tourism which helps to promote our jewel to the world and other productions which include: iCube video; an environmental short clip featuring United Nations’ Secretary General, Ban Ki-moon launched in UBD, and now being circulated in Universities all over the world; Pedang Nabi – Islamic Tourism; The Empire Hotel’s 10th Anniversary documentary, and these are just a few.

In Nana’s recent visit to Jakarta, she met with the production team of Trans TV, one of Indonesia leading TV station, to discuss about the prospect of talent and program exchanges with Brunei. “The producers at Trans TV were impressed by the performance of our talent and the quality ofthe productions we have to show for. Given the right platform, Brunei’s talent can be on par with any regional artist,” said Nana. Conversations are already underway for further collaboration on projects that will shape the future of our entertainment industry.

Right now, MagicMedia’s primary focus is to continuously raise the bar locally by producing world class videos and short films. It is no coincidence that MagicMedia’s corporate tagline is “capture your imagination”. After all, helping clients to capture and communicate what they have in mind is exactly what the Magicians do. The company is already putting new clients on a 6 week waiting list for developing corporate videos and independent projects. When asked about the future of video production, Nana pointed out a crucial fact that “humanity watches 80 million hours of YouTube everyday and within the next four years, more than 90% of the web data will be of video content”, quoting Chris Anderson, the Curator of Ted Conference.

It is part of the vision of MagicMedia to empower the Brunei community with the means and support to ride along the YouTube and web video revolution. Again, no empty statements. Already, MagicMedia is parked side by side with MINT, Brunei’s largest web developer in making things happen.

The future for the media industry is indeed fascinating, with the world being flattened by YouTube and Social Media. What is truly amazing is to see the emergence of young and passionate Brunei entrepreneurs riding the wave and lifting up their fellow counterparts along the way.

If you have been to a Starbucks store, you would understand, when I describe about the kind of energy and positive spirits the baristas carry.

It is like stepping into different zone where, as a customer you sometimes feel like a spectator or even a cheerleader wanting thecompany to do well. No matter which Starbucks you happen to be in the world, it gives you a sense of familiarity, a piece of home.

Perhaps its just me, perhaps the enthusiasm will rub off, when you learn more about their culture because they represent the good guys, and we all want the good guys to win!

Excerpt from an interview with Howard Schultz, CEO Starbucks:

“The only reason we are in business is because of the quality of people we are able to attract into our team, coupled with the quality of coffee we can and… If we do not do the two things well, we are finished. We are not in the coffee business serving people, we are in the people business serving coffee. If we believe that, we have to imprint a level of understanding and behavior about how we do things. It begins with attracting people with like-minded values, people who want to serve the customers, who want to be part of the environment.”

Starbucks put their money where the mouth is by being one of the very few companies that provide healthcare benefits and stock options even to their part timers. In 2009, the company spent $300 million on insurance, more than they spend on coffee beans in a year. Schultz indicated that he wanted to build a company where people would not be left  behind, one that his father never had a chance to work for.

In an autobiography written by Michael Gill, a barista at Starbucks, found more meaning, happiness and life purpose in Starbucks pouring coffee than in his well-paid, highly esteemed job as a creative director for JW Thomson.

At Starbucks, staff are known as partners, and they take the word ‘respect’ very seriously, even to the extent of ensuring positive and polite phrases are carried out in the conversation between partners. There is a rule that state use the phrase “can you do me a favor” when they need help, instead of demanding for a job to be done! Gill attributed his second chance in life to Starbucks’ unwavering commitment to treating people as people.

Consider this:

“The Starbucks mission statement is more than words on a piece of paper – it’s the philosophy that guides how we do business every day.” Howard Schultz

The Starbucks Mission Statement
To inspire and nurture the human spirit— one person, one cup, and one neighborhood at a time.

Our Partners
We’re called partners, because it’s not just a job, it’s our passion. Together, we embrace diversity to create a place where each of us can be ourselves. We
always treat each other with respect and dignity. And we hold each other to that standard.

When we are fully engaged, we connect with, laugh with, and uplift the lives of our customers— even if just for a few moments. Sure, it starts with the promise of a perfectly made beverage, but our work goes far beyond that. It’s really about human connection.

At Asia Inc Forum, we outsourced our artwork to one of Brunei’s leading design firm, MixmediaWorx (MMW) who handles the top projects in the country and abroad, including the design of APEC logo in Singapore for 2009 and the revamp of BEDB branding strategy.

As a marketing guy for Asia Inc Forum, we churned out different newspaper advertisement each week for our conferences, and engaged MMW company to produce ebooks, brochures, banners and the whole nine yards.

Being situated just across the road from Asia Inc Forum office, MMW soon became my second office where I “go to escape, and escaped to go.”

The team does not have any rulebook on culture, yet the kind of bonding that gelled them together falls nothing short of the characters in the book Tribal Leadership; with the common purpose of always pushing the envelop for their clients in applying their own final touch to the storyboard.

What attracted me to this bunch of designers most, was not only the fact that they are rock star looking, music savvy and Birkenstock wearing laid back artists, but the very contagious energy that they transpired. Not to mentioned, these are the only people who get my humour (hopefully not out of courtesy, as I was the client).

Being the top agency they are, you often see multiple of projects on hand at any one time, which must have been immensely stressful. However, you get no hint of stress at all in the office, it was always calm, relaxed and above all, fun!

The guys often stayed back overnight to get the jobs done for clients without much hesitation. To them, it is just like a college hangout hub, having fun except the kind of fun that people pay for!

The Tribal Leader, Azlan being a seasoned designer himself, explained that managing a bunch of creative people is a totally different ball game. “It is about trust, empowerment and the discipline of not micromanaging”.

Sounds a lot like he is not doing anything, but on the contrary, it is the exact leadership style employed by Zen Master, Phil Jackson of the Lakers and the legendary Chicago Bulls, who have the discipline of letting the players work things out in the final minutes of championship games without calling any time out!

I had an epiphany looking around the designers working on different clients’ projects one day, it occurred to me what these guys are doing are essentially “Beautifying Brunei” with their magical touch! An important vocation which these bunch of kids have no idea they are part taking on.

Working today at MixmediaWorx is another crazy designer who has volunteered his service for free for the whole of last month, in order to get his foot in the door. During the time, Kyll along with the gang stayed over night to get projects done, tag along to meetings and was treated as one of the tribe.

Not to mention, I have also became a permanent member of the imminent MixmediaWorx, as a partner to the sister company, Catalyst, with ambitious vision of making a difference with the never say die rock star attitude.

Culture

Corporate culture is so important to Zappos that they are ready to hire or “re based upon a set of 10 core values they set out.  This is the only company to my knowledge that pays new trainees $2,000 to quit, as a test of their commitment to the company early in their
career.

A favorite Zappos story of mine is the one when a Zappos’ rep took the initiative to send %owers to a customer a$er she found out that the reason the customer had returned a pair of shoes was that her husband had died a$er he ordered them. It is the kind of empowerment and trust bestowed upon the sta! at the grass root level that makes the brand great.

Needless to say, this is the kind of human touch that personi”es what a service industry is and should be all about. Compare this incident to the money Zappos would have spend on advertising. Which do you think would be more credible?

The truth is, we cannot control customer service, just like we cannot control what our kids are going to grow up to be. As a leader, we know all too well that staff act one way when they are being supervised, but act another way in our absence. It often surprises me when business owners do not understand why their staff performs poorly towards their customers, when their staff  is mistreated in the first place.

In a previous organisation I worked for, we were always reminded of the fact that “your organisation is only as strong as your weakest link”, citing the importance of consistency throughout the team and value of training in ensuring the very best of staff performance. When you hire a group of people and treat them with due respect, training and empowerment, there is really no need to use any carrots or sticks, just like the employees at Zappos.com.
Tony recently published his book Delivering Happiness that went straight to the top of the non-fiction chart at Amazon.com. If you want an in depth understanding of building company culture, look no further!

Continue Reading

Zappos.com is one of America’s leading online shoe retailers which bases its whole company direction on providing the best customer service through delivering happiness to customers. Their company structure is committed to this belief, a discipline that forces Zappos to make tough decisions that result in detrimental short term consequences.

A few years ago, Zappos made a strategic decision to eliminate all marketing budgets, instead they invested their money in Customer Service. Considering that 75% of their sales come from repeat customers, this move should not have come as a surprise to the business world, but it created headlines all over the press!

CEO Tony Hsieh, proclaimed that the secret weapons used by the company to lure customers are not fancy websites or creative gimmicks, but the old fashioned telephone! Unlike other websites, Zappos actually encourages its customers to call their call centers!

Some of the unusual practices by Zappos include:

• Next day delivery for repeat customers.
•  No phone scripts for telemarketers. Reps are encouraged to speak for as long as they want, on any topic at all to their customers.
•  365 days return policy, which includes free shipping.

All the above are contrary to traditional business practices because they add huge expense on the company’s overheads without guarantees. Tony’s famous saying is that when you stick to your vision, revenues will follow. By sticking their neck out in everything they do and holding true to their beliefs, Zappos have won multiple awards for customer service, hit Gross Merchandise Sales of $1billion last year, and were voted Fortune’s best company to work for in 2009.

Interview with Hj. Mahmud, MD, Darussalam Holdings

Congratulations on winning the New Millennium Award, a prestigious award presented at the 36th International Award for the Tourist, Hotel and Catering Industry in Madrid, Spain.What does the award signify?

The award signifies the recognition given by an international organization for the efforts made in promoting tourism by Darussalam Holdings Sendirian Berhad. It also reflects the hardwork and effort as well as dedication of everyone in Darussalam Holdings Sendirian Berhad.

According to your Vision statement, your company aims to become one of the leading HAJ and UMRAH service providers and TRAVEL and TOUR operators in the Asia Pacific Region in the next 5 years. Clearly, you have set your goal way beyond Brunei and the ASEAN region. Tell us about the potential of this market that you are exploring.

There is definitely a huge potential outside of Brunei, especially in the tourism industry. We cannot be complacent and be satisfied only with the market within Brunei especially when we know it is very small based on the country’s population and there are many travel agents out there fighting for the same pie.

As such, going beyond Brunei and the ASEAN region is the right path and an early step not only to compliment the ASEAN region but at the same time promote Brunei Darussalam as well, as a travel destination to the other countries, before venturing further to other countries beyond the region. This will in return not just benefit Darussalam Holdings but also the country as a whole, boosting the economy and not relying only on the country’s primary resources. This effort would only be possible with the support from all relevant agencies whether from the private or the government sector.

What are the business principles you operate on?

As highlighted in our motto, ”Sentiasa Berkhidmat Dengan Petunjuk Allah” or “continuously providing service with the guidance of Allah”. With that in mind, our principle would always be to conduct our business in accordance to the teachings of Islam which is then translated in the day to day management and operations of the business. Providing good service to our customers, ensuring that they get products with value for money. Making effort to ensure logistic arrangements for our Muslim customers are cared for when traveling to certain countries, such as preparing prayer time-tables, ensuring food provided is Halal, doing research on the nearest halal restaurants and mosques.

Tell us about your company culture. Being a relatively small company, we are all like a big family. Supporting each other and providing service in order to achieve the vision and mission of the company, practising a Top-Down and Bottom-Up management style.

However we always strive for work-life balance to ensure that the employees of the company can always perform at their best. Weekly sports and social activities are organized to foster the relationship of the employees.

What advice do you have for the entrepreneurs in Brunei?

I believe there are many entrepreneurs out there far more experienced and have been in the business longer than us. We would probably still have a lot more to learn and a lot more experience to gain before we could give advices. All I could say is never give up in whatever we do, to conduct our business with honesty and patience and of course lastly to always seek for guidance and blessings from Allah. I hope with this award, it would be a motivator and proof to other entrepreneurs out there that even a small company from a small island can do the country proud in the big world.

Engineering Company Culture

While customer service is executed at the bottom level, it is really a top down discipline. First, the leaders need to identify the direction; then relentless dedication throughout the entire company has to follow. The model would never have worked, had it been from the bottom up, simply because there is not enough influence at the grass root level to carry the whole vision through.

Carlos Ghosn, the CEO of Nissan faced a dire task of resurrecting the company’s performance, when he was hired by the company to head the Japan operation in the early 2000s. I was privileged to attend the Asia’s Top CEO award presented to Ghosn by The International Herald Tribune in 2002, where he shared the secrets of turning Nissan around.

The Japanese are renowned for preserving their own culture, which is why it takes a very special outsider to exert his or her influences,let alone lead at the top.

Understanding the Japanese’ value for commitment, Ghosn made a public announcement on the first day of his engagement that he would step down from his position one year on, if he did not achieve the objectives set out by him. The Japanese people hold high value on the virtue of commitment; this act won an early con”dence vote from his followers.

Two, Ghosn outworked the Japanese people by being the first to be in the once, and last to leave. If you understand anything about the Japanese work ethic, you would know that the Japanese people are the hardest working people on the planet! Needless to say, Carlos Ghosn won over their support by not only talking the talk.

Three, Ghosn ensured that the vision and objectives set out are so clear, simple and short that people from the janitor to the vice president are able to understand and repeat them, no matter who is being asked.

One of the most admired brands in Asia demonstrated that getting a committed team and forming a company culture is about walking the walk, not just some feel good statements posted on the wall.