THE IMPERATIVES OF MANAGEMENT IN THE FACE OF THE CURRENT GLOBAL ECONMIC CRISIS: PAPER TO OAU EXECUTIVE MBA STUDENTS Engineer Ernest C. A. Ndukwe Executive Vice Chairman, NCC

The Global Economic Crisis Management is described in the BNET Business Dictionary as the use of professional skills for identifying and achieving organizational objectives through the deployment of appropriate resources. Management involves identifying what needs to be done, and organizing and supporting others to perform the necessary tasks. Management is described in the BNET Business Dictionary as the use of professional skills for identifying and achieving organizational objectives through the deployment of appropriate resources. Management involves identifying what needs to be done, and organizing and supporting others to perform the necessary tasks.

Agenda 1. Innovation 2. Corporate Governance 3. Financial Management 4. Investment in Technology 5. Manpower Fit 6. Team Building 7. Customercentricism 8. Strategic Leadership

Innovation  A corporate leader needs to always clearly define what the organization’s core business is, and then strive to attain superior market competitiveness through innovation.  Although this crisis is a major challenge to many businesses, at this same time, innovative companies are recording good performance and profit.  Innovation is already giving birth to new institutions, and enabling new entrants and technologies to emerge.

Corporate Governance  A downturn can actually be good for a well-managed company. “It’s a priceless opportunity to improve your position relative to your competitors,” says Adrian Slywotzky, a Managing Director with consulting firm Oliver Wyman in Boston, USA.  Every company has customers who are more profitable than others, and a downturn is a time to focus on those who bring in the most cash.  The corporate governance principles, business decisions and Management style that are employed in an economic crisis will be crucial to the survival of the enterprise.

Financial Management  In the midst of a recession, the prudent use of financial capital and financial investments is of great importance. However, it will be self destructive for any organization to stop investing.  What is important is that any investment must be focused and directed at viable innovation, approved by the Board, and aligns with new technologies that promote efficiency and economic growth.  Innovation is already giving birth to new institutions, and enabling new entrants and technologies to emerge.

Investment in Technology  At the World Telecoms Policy Forum in Portugal the Secretary General of the ITU, Dr. Touré, Panelists and members of the audience made up of industry leaders, ICT firms and Government agencies all agreed that the ICT industry and the use of modern ICT tools will strongly contribute to leading the world out of the crisis.  In a global crisis, the proper use of technology and technology tools results in improved efficiency, cost savings, better time management amongst others.

Manpower Fit  The best time to re-energize your workforce is during a crisis because a crisis time forces an organisation to re-evaluate their core business functions and therefore remove any non value adding activity.  For a well managed business, a more creative approach rather than simply cutting staff, will help the company weather a recession.  Organizations that were careful with hiring practices in the past will already have a strong employee pool in the company.

Team Building  It increases the feeling of teamwork and being a valued part of the team.  It allows employees to be adaptable and respond positively to changing scenarios, something which is especially relevant in the current economic circumstances.

Customer Focus  The mainstay of any organisation is the customer.  The needs of your customers must be the primary concern of any organization that wishes to succeed.  Develop new ways to reward loyalty, employ customer- friendly technologies and customer service staff that leave customers with a desire to return.

Strategic Leadership  Strategic leadership means strong and visionary leadership.  The only way an organization can insulate itself against the worst case effects of the economic crisis, is through strategic leadership.  In a crisis, top Management must provide effective leadership to develop impetus and create the underpinning required for a successful corporate transformation.  It is leadership that is capable of planning and taking pre-emptive action.  It is leadership that is solution oriented. 

Engr Ernest Ndukwe. Thank YOU. Although the global crisis continues to rage, the truly innovative corporations that employ good and time tested Management principles will in the long run be the big winners.