Tuesday, April 1, 2014

Business growth relies on quality of staff owners assign key roles

 
Business owners must ensure that they have the right people to implement their decisions or else they may end up with ineffective praise singers and gatekeepers. FOTOSEARCH
Business owners must ensure that they have the right people to implement their decisions or else they may end up with ineffective praise singers and gatekeepers. FOTOSEARCH 
By Peter Mutua

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Leadership operates in teams chosen for excellence in performance rather than loyalty and being on the boss’s wavelength which are insufficient qualifications.
-John Gardner

Sometime in July 1440 BC only a few weeks after leading more than a million people through what was a dramatic, action packed exodus from Egypt, Moses received a visit from Jethro, his father-in-law. After relating all that had been done in the course of releasing the nation from captivity, Moses went back to his ecclesiastical duty of “leading” the people.

From morning till night, Moses sat determining disputes and issuing directives regarding a variety of issues ranging from quarrelling spouses to matters of national policy to conveyance of divine instructions.

Needless to say, by the end of every day Moses was exhausted while the individuals whose problems he had not been able to solve were frustrated. Till then, all power was concentrated in the hands of Moses, his brother Aaron and their sister Miriam.

After observing scenario, Jethro offered counsel — that Moses appoints “capable, God-fearing individuals of integrity who hate dishonest gain” with whom he could share the load of leadership. While Moses remained the arbiter of last resort, all minor matters were quickly and efficiently dispensed with by these trusted individuals.

Being eager for solutions, Moses immediately put Jethro’s advice into practice.
Not surprisingly, there were found within the multitude men who fitted these exact specifications, the vast majority of who were completely unrelated to Moses. Following this handover, he became a more effective leader and the people were content and satisfied.

Not all leaders take so easily to delegation. For some strange reason membership of the library in Kenya’s largest and oldest public university must be sought from and personally approved by the vice chancellor.

Given that this public institution has a student population of 84,000, more than 5,300 staff and assets worth more than Sh102 billion ($1.12 billion) it is tragic that the leader’s time is spent on such relatively mundane affairs.

Many leaders of family business resist the need to delegate authority to subordinates for fear that the people assigned to the tasks will prove untrustworthy, that responsibilities handed down will not be executed as well as possible or because the leader is afraid of being overshadowed or outperformed by their appointees.

Other leaders who relinquish some of their responsibilities do so only reluctantly to those who are of unquestionable loyalty, close blood relations or sycophants who speak sweet words into the leader’s ear.

Such leaders make the mistaken assumption that loyalty is superior to competence, forgetting that the ability to perform is more important than congruence of thought.
How then can business leaders tell those who will be dependable from all the hangers on who form part of the entourage? How can they discern those who can be entrusted with responsibility from those who can’t?

Every family business rises and falls on the quality of the staff it engages, particularly those who interact directly with the leaders and who are responsible for translating vision and strategic objectives into day-to-day activities.

To fall prey to the temptation to assign these important ranks to chorus singers and other types of sycophants rather than the true servants who have the interests of the leader at heart is to plunge the venture into chaos and confusion.

Why talent hunt goes beyond employee hiring

It takes time and resources to find an ideal candidate to fill a vacant position. FOTOSEARCH

It takes time and resources to find an ideal candidate to fill a vacant position. FOTOSEARCH 
By Canute Waswa

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The Federation of Kenya Employers estimates that at least a third of business failure is due to poor hiring decisions and inability to attract and retain the right talent.

Public hospitals will be biggest beneficiaries of new traffic laws

 Bus wreck at an accident scene. Photo/FILE
Bus wreck at an accident scene. Photo/FILE 
By Edward Omete
In Summary
  • The government will save millions of shillings used to treat injuries

From Tuesday, Kenya’s public transport sector entered a lane that will hopefully reduce road carnage that has become a norm. For the Health ministry, the new tougher laws will help slash the high costs of treating accident patients under government care.

Java, Subway eye middle class cash with new city outlets

corporate News


 
A Java coffee shop in Nairobi. Kenyan Java House is set to increase its footprint with seven new outlets this year including five in Nairobi, a branch in Kampala and Kisumu. Photo/FILE
A Java coffee shop in Nairobi. Kenyan Java House is set to increase its footprint with seven new outlets this year including five in Nairobi, a branch in Kampala and Kisumu. Photo/FILE 
By WANGUI MAINA
In Summary
  • Subway opens its second store in Kenya this week on Kenyatta Avenue. Subway opened its first outlet in September, at Junction mall and has recorded good business.
  • It is eyeing to open an express coffee shop near Mama Ngina Street, another branch on Westlands Road, in Hurlingham and in Greenspan Mall, Donholm by September.

Dangote entry to stir up East African cement market

Corporate News
 
The entry of Dangote Cement—owned by Africa’s richest man Aliko Dangote— is set to further raise competition and cut margins in the local and regional cement market. Photo/FILE
The entry of Dangote Cement—owned by Africa’s richest man Aliko Dangote— is set to further raise competition and cut margins in the local and regional cement market. Photo/FILE  AFP
By VICTOR JUMA
In Summary
  • The entry of Dangote Cement—owned by Africa’s richest man Aliko Dangote— is set to further raise competition and cut margins in the local and regional cement market.
  • Dangote is widely tipped to either invest in Kitui or the Coast where vast amounts of limeston
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Kenya Airways stock up 4pc on Jambojet optimism

Money Markets
Jambojet is expected to target the market segment currently occupied by buses. Photo/PHOEBE OKALL
Jambojet is expected to target the market segment currently occupied by buses. Photo/PHOEBE OKALL 
By CHARLES MWANIKI, cmwaniki@ke.nationmedia.com
In Summary
  • The share closed at Sh12.95, up from the opening price of Sh12.50.
  • The stock saw a trading high of Sh13.15, arresting a mini slide that saw it lose over a shilling in value in the past week.
  • Jambojet, a wholly owned subsidiary, is expected to target the market segment currently occupied by buses, with initial flights between Nairobi and Mombasa, Kisumu and Eldoret.

Deposit growth lifts microfinanciers

Money Markets

 Mr George Mbira, Rafiki Microfinance Bank general manager. Photo/FILE

Mr George Mbira, Rafiki Microfinance Bank general manager. Photo/FILE 
By GEORGE NGIGI, gngigi@ke.nationmedia.com
In Summary
  • Registered DTMs post net profit of Sh552m up from Sh266m in 2012.
  • The profit growth by the microfinance banks was six times faster than that of commercial banks which grew at 17 per cent.
  • The industry deposits grew by 61 per cent from Sh15.3 billion to Sh24.6 billion.