01 February 2004	Sunday	09 Zilhaj 1424

KARACHI, Jan 31: In the quest for continuous improvement in productivity and efficiency, companies are making untiring efforts to improve management skills.

So far, multinationals have been role models for many local businesses. MNCs are big in size. They are managed by professionals with a wide share-ownership. They focus on technological innovations to constantly improve quality and productivity with fewer jobs.

Global network cuts their production costs. They shift their manufacturing facilities from industrialized states to labour- cheap developing countries in order to compete globally. Corporate giants are trimming, shedding fat, are getting leaner and thinner.

But in these turbulent times, failure of corporate giants and Enron and WorldCom fiascoes are prompting business to look around for more ideas and innovations.

The Management Association of Pakistan (MAP) whose membership embraces both local and foreign firms has decided to invite Abdul Sattar Edhi to speak on management practices in his organization.

Edhi Trust, a social organization, attracts workers with commitment. It differs from jobs offered by commercial organizations driven by profit motive. One is a mission, the other is a career. Yet, Sattar Edhi may unveil management practices that could be useful to firms.

Some experiences of a regional head of a multinational were also shared by MAP members at a talk organized last week at a local hotel on "the challenges of managing a regional business."

The event presided over by MAP President Javed Iqbal had some relevance in the background of recent South Asia Free Trade Agreement signed by Saarc countries. Safta envisages reduction of tariff between India and Pakistan to 20 per cent in two years, from a maximum of 25 per cent under the WTO.

Luca Mignini, general manager and vice-president, China, Taiwan, Hong Kong, Vietnam and Pakistan of family-owned SC Johnson and Son, US, with global reach spoke about country risk, cultural diversity and brand leverage - the experiences of a multinational company operating in different regions and states. Luca, an Italian national, is based in China.

His brief presentation on his company's policies was followed by interaction with the audience. Highlights of his observations were: The owners focus on strategic policies and direction or major investment decisions. The company was family managed till the fourth generation. Now it is professionals who run it. If managers can convince the owners, they can get strategic decisions reversed.

In appointing a country head, the company prefers to have locals when they are prepared to take over under a human resource policy that retains 85 per cent of the workforce. Creative staff members are retained and empowered.

Executive posts are filled up from internal promotions, though about 15 per cent fresh blood is injected to rejuvenate work culture. Local companies are not micro-managed as it was done a few years ago in Pakistan.

Multinationals can only compete with domestic firms if they make superior products through constant innovations. Some brands are killed and new ones are developed. It has to be a long haul with high-end products. Strategies for building of superior brands are needed.

Security comes first when assessing country's risk. The level of education is very significant. So is political stability. Local cultures and people must be respected. Corporate arrogance is very damaging. Locals know their culture and environment better than foreigners. Interaction between locals and foreign managers should be encouraged. "The boss is always right" approach is not helpful.

The potential of a national market is determined through research studies. The person who identifies business opportunities should be assigned to work for it. The job should not go to a different person.