training manual - National Defence College Nigeria

EXECUTIVE TRAINING FOR MEMBERSHIP ADMISSION AND

UPGRADE PROGRAMME (ETMAUP)2020

TRAINING MANUAL

SCHEDULE OF PRESENTATIONSMODULE TOPIC FACILITATORModule 1 Military and Corporate Business

Leadership Models - Embracing the Difference

RADM M. A. Johnson (RTD)

Module 2 Strategic Planning & Execution Prof. Nat Ofo

Module 3 Blue Ocean Strategy in a Recessionary Economy

Prof. Nat Ofo

Module 4 Personal Branding for Business Success

Mrs. Nonye Cally-Bechi

Module 5 Financial Intelligence and Wealth Creation Through SMEs

Mrs. Tope Omage

Module 6 Corporate Governance and Boardroom Skills

Mrs. Tope Omage

MODULE 1MILITARY AND CORPORATE

BUSINESS LEADERSHIP MODELS –EMBRACING THE DIFFERENCE

BYREAR ADMIRAL AKINSOLA M JOHNSON (RTD)

INTRODUCTION

3

Some books and publications on leadership

5

6

INTRODUCTION (CONT)

•Leadership seems to live in the eye of the

beholder and while we may recognize it in

action, it is difficult to supply a universal

description

•Concept of leadership appears to be driven by

myths; leaders are born, not made; leaders must

be charismatic and have unblemished private

lives

7

INTRODUCTION (CONT)

A HIGHLY INTELLIGENT, HIGHLY SKILLED

BUSINESS CHIEF EXECUTIVE OR MILITARY TOP BRASS

WHO WAS PROMOTED INTO A LEADERSHIP POSITION

ONLY TO FAIL AT THE JOB

A GENERAL, OR A CAPTAIN OF INDUSTRY, WITH

SOLID BUT NOT EXTRAORDINARY INTELLECTUAL

ABILITIES AND TECHNICAL SKILLS WHO WAS

PROMOTED INTO A SIMILAR POSITION BUT SOARED

LEADERSHIP IS KEY TO THE SUCCESS OF THE

MILITARY BOTH IN PEACE AND WAR

LEADERSHIP IS VITAL TO THE SURVIVAL OF

CORPORATE BUSINESS NOT ONLY WHEN THE

BUSINESS ENVIRONMENT IS FRIENDLY BUT ALSO

WHEN YOU HAVE A DYSFUNCTIONAL ATMOSPHERE

9

INTRODUCTION (CONT)

SCOPE

CONCEPTUAL DEFINITIONS

ORIGINS OF MODERN MILITARY AND CIVILIANINTEREST IN LEADERSHIP

SIMILARITIES BETWEEN THE MILITARY ANDCORPORATE WORLD

DIFFERENCES BETWEEN LEADERSHIP IN THEMILITARY AND CORPORATE WORLD

SELECTED CASE STUDIES

EMBRACING THE DIFFERENCE

10

SCOPE







11

MAIN CONCEPTS

MILITARY

CORPORATE BUSINESS

LEADERSHIP

12

MAIN CONCEPTS

MILITARY

CORPORATE BUSINESS

LEADERSHIP

13

MILITARY

14

THE ARMED FORCES

OF A COUNTRY

THE ARMED FORCES,

THE POLICE AND OTHER

PARAMILITARY

ORGANIZATIONS IN

NIGERIA

MAIN CONCEPTS

MILITARY

CORPORATE BUSINESS

LEADERSHIP

15

CORPORATE BUSINESS

A FORM OF BUSINESS

OPERATION THAT DECLARES

THE BUSINESS AS A

SEPARATE, LEGAL ENTITY

GUIDED BY A GROUP OF

OFFICERS KNOWN AS THE

BOARD OF DIRECTORS

16

MAIN CONCEPTS

MILITARY

CORPORATE BUSINESS

LEADERSHIP

17

LEADERSHIP

LEADERSHIP IS OF NO LESS INTEREST WITHIN

THE MILITARY AND ITS RELEVANCE IS NOT LIMITED

TO THE CORPORATE WORLD

THERE ARE ALMOST AS MANY DIFFERENT

DEFINITIONS OF LEADERSHIP AS THERE ARE

PERSONS WHO HAVE ATTEMPTED TO DEFINE THE

CONCEPT

18

LEADERSHIP (CONT)LEADERSHIP IS VISIONARY; IT IS THE PROJECTION OF PERSONALITY

AND CHARACTER TO INSPIRE PEOPLE TO ACHIEVE THE DESIRED

OUTCOME. THERE IS NO PRESCRIPTION FOR LEADERSHIP AND NO

PRESCRIBED STYLE OF LEADER. LEADERSHIP IS A COMBINATION OF

EXAMPLE, PERSUASION AND COMPULSION DEPENDENT ON THE

SITUATION. IT SHOULD AIM TO TRANSFORM AND BE UNDERPINNED

BY INDIVIDUAL SKILLS AND AN ENABLING PHILOSOPHY. THE

SUCCESSFUL LEADER IS AN INDIVIDUAL WHO UNDERSTANDS

HIM/HERSELF, THE ORGANIZATION, THE ENVIRONMENT IN WHICH

THEY OPERATE AND THE PEOPLE THAT THEY ARE PRIVILEGED TO

LEAD

- DEFENCE LEADERSHIP CENTRE

19

LEADERSHIP (CONT)LEADERSHIP IS VISIONARY; IT IS THE PROJECTION OF PERSONALITY

AND CHARACTER TO INSPIRE PEOPLE TO ACHIEVE THE DESIRED

OUTCOME. THERE IS NO PRESCRIPTION FOR LEADERSHIP AND NO

PRESCRIBED STYLE OF LEADER. LEADERSHIP IS A COMBINATION OF

EXAMPLE, PERSUASION AND COMPULSION DEPENDENT ON THE

SITUATION. IT SHOULD AIM TO TRANSFORM AND BE UNDERPINNED

BY INDIVIDUAL SKILLS AND AN ENABLING PHILOSOPHY. THE

SUCCESSFUL LEADER IS AN INDIVIDUAL WHO UNDERSTANDS

HIM/HERSELF, THE ORGANIZATION, THE ENVIRONMENT IN WHICH

THEY OPERATE AND THE PEOPLE THAT THEY ARE PRIVILEGED TO

LEAD

- DEFENCE LEADERSHIP CENTRE

20

LEADERSHIP (CONT)

JOHN P KOTTER

21

THE DEVELOPMENT OF

VISION AND STRATEGIES;

THE ALIGNMENT OF

RELEVANT PEOPLE BEHIND

THOSE STRATEGIES AND

THE EMPOWERMENT OF

INDIVIDUALS TO MAKE

VISION HAPPEN, DESPITE

OBSTACLES

SCOPE







22

ORIGIN OF MODERN MILITARY AND CIVILIAN INTEREST IN LEADERSHIP (CONT)

23

GARY SHEFFIELD

THE RELATIONSHIP OF THE

EDWARDIAN OFFICER AND

SOLDIER REFLECTED THE SORT

OF IDEAL COUNTRY IN WHICH

LEADERS HAD THE

RESPONSIBILITIES OF RULING,

GUIDING AND HELPING THOSE

IN THEIR CHARGE

CIVILIAN INTEREST IN LEADERSHIP DERIVES OBLIQUELY

FROM STUDIES OF MANAGEMENT STIMULATED BY THE

EXPANSION OF INDUSTRY AND THE ADVENT OF MASS

PRODUCTION

LEADERSHIP AS SUCH WAS NOT AN INITIAL CONCERN UNTIL

FIRST EXPLORED WITHIN THE CONTEXT OF UNDERSTANDING

MOTIVATION

LITTLE OR NO ATTENTION WAS PAID TO THE EXPERIENCE OF

MILITARY LEADERSHIP AS IT WAS BELIEVED THE SETTING WAS

SO DIFFERENT

25


WITHIN THE ARMED FORCES A GREATER UNDERSTANDING OF

THE QUALITIES OF LEADERSHIP WAS PROVOKED BY EXPERIENCE

OF LEADERSHIP FAILURE IN BATTLE

TRADITIONAL SELECTION METHODS BASED ON PERSONAL

QUALITIES, SOCIAL BACKGROUND AND EDUCATION WERE

INADEQUATE AND A RADICAL SOLUTION WAS ADOPTED

THE CORPORATE WORLD HAS PRODUCED OUTSTANDING

BUSINESS LEADERS WHO HAVE SUCCESSFULLY MANAGED FIRMS

WORTH TRILLION DOLLARS

26


SCOPE







27

COURAGE, COMPETENCE AND CHARACTER

CHARACTER IS THE FOUNDATION

COMPETENCE IS ABOUT YOUR SKILLS OF LEADERSHIP

AND EXECUTION

COURAGE IS THE ENERGY THAT KEEPS YOU DOING THE

RIGHT THING, EVEN WHEN THERE ARE CHALLENGES

28

SIMILARITIES BETWEEN THE MILITARY AND CORPORATE WORLD (CONT)

BOTH MILITARY AND CORPORATE LEADERS HAVE

COMPETITORS THUS REQUIRE INFORMATION, STRATEGIES,

PLANS AND GOOD EXECUTION TO WIN

BOTH THE MILITARY AND CORPORATE BUSINESS REQUIRE

LEADERS TO INFLUENCE THEIR PEOPLE TO ACHIEVE RESULTS

AND MEET THEIR GOALS

NEGOTIATING IS SIMILAR TO THE MILITARY AND CORPORATE

BUSINESS LEADERS

YOU CAN NEGOTIATE ANYTHING - WAR, BUSINESSES,

ALLIANCES BETWEEN NATIONS ETC

29

SIMILARITIES BETWEEN THE MILITARY AND CORPORATE WORLD (CONT)

SCOPE







30

DIFFERENCES BETWEEN LEADERSHIP IN THE MILITARY AND CORPORATE WORLD (CONT)

BUDGETING

31


BUDGETING

MANAGING CHANGE

32

MANAGING CHANGE (CONT)

MANAGING CHANGE IN THE MILITARY CAN BE APROFOUND MATTER BECAUSE OF BUREAUCRACY

WHEN YOU DECIDE TO CLOSE A REPAIR DEPOTOR A DOCKYARD, WHAT ARE YOU GOING TO DOWITH THE STAFF?

YOU NEED TO PREPARE FOR IT. WHEN IT COMESYOU MUST TAKE A DECISION. YOU MUST “ESTIMATETHE SITUATION”

33


BUDGETING

MANAGING CHANGE

CULTURE

34


BUDGETING

MANAGING CHANGE

CULTURE

CORPORATE GOVERNANCE

35

CORPORATE GOVERNANCE (CONT)

36

PROF GREG SHAILER

THE COLLECTION OF

MECHANISMS, PROCESSES

AND RELATIONS BY

WHICH CORPORATIONS

ARE CONTROLLED AND

OPERATED


37

MARK GOYDER

GOVERNANCE AND

LEADERSHIP ARE THE YIN AND

YANG OF SUCCESSFUL

ORGANIZATIONS. IF YOU HAVE

LEADERSHIP WITHOUT

GOVERNANCE YOU RISK

TYRANNY, FRAUD AND

PERSONAL FIEFDOMS. IF YOU

HAVE GOVERNANCE WITHOUT

LEADERSHIP YOU RISK

ATROPHY, BUREAUCRACY, AND

INDIFFERENCE

CORPORATE GOVERNANCE STRUCTURE OF THE MILITARY/PARAMILITARY

PRESIDENCY

MEMBERS OF DEFENCE COMMITTEES OF NASS

MINISTRY OF DEFENCE

MINISTRY OF INTERIOR

38

CORPORATE GOVERNANCE STRUCTURE OF THE MILITARY

MINISTRY OF DEFENCE

MINISTER OF DEFENCE

PERMANENT SECRETARY

DIRECTORS

NATIONAL ASSEMBLY – OVERSIGHT FUNCTION

39

GOVERNANCE STRUCTURE OF CORPORATE BUSINESSES

SHAREHOLDERS ELECT BOARD OF DIRECTORS

BOARD OF DIRECTORS DETERMINE THE CEO

BOARD OF DIRECTORS APPROVE OVERALLSTRATEGIC DIRECTION

BOARD OF DIRECTORS MONITORS OPERATIONS

40


FOR CORPORATE BUSINESSES, TRANSPARENCY AND

ACCOUNTABILITY ARE VERY KEY TO SHAREHOLDERS, THE

MARKETS, ANALYSTS, AND MANY OUTSIDE

CORPORATE GOVERNANCE IS IMPORTANT TO ANY

BUSINESS

CORPORATE GOVERNANCE IS ALSO APPLICABLE

THESE DAYS TO THE MILITARY IN NIGERIA AS SOME

FORMATIONS ARE GENERATING FUNDS THROUGH THE

PUBLIC FOR GOODS AND SERVICES PROVIDED

41


BUDGETING

MANAGING CHANGE

CULTURE


WORKING HABITS

42

IN THE MILITARY, THERE IS A SAYING THAT YOU ARE TO

WORK 24 HOURS. THE CORPORATE BUSINESS DO NOT DO

THAT AS A MATTER OF ROUTINE

MILITARY PERSONNEL CAN CHANGE APPOINTMENT AFTER

EVERY 2 YEARS OR THEREABOUT, BUT A CIVILIAN WORKING

IN A CORPORATE BUSINESS MAY NOT HAVE THAT

OPPORTUNITY

LEADERS MUST PLACE A LOT OF EMPHASIS ON THE

MORALE, WELFARE AND WELL-BEING OF NOT ONLY THEIR

STAFF BUT THEIR FAMILIES

WORKING HABITS (CONT)

43


BUDGETING

MANAGING CHANGE

CULTURE


WORKING HABITS

PLANNING

44

MILITARY LEADERS AND CORPORATE BUSINESS EXECUTIVES

ARE DOERS; THEY EXECUTE

THE ACTION PLAN IS A STATEMENT OF INTENTIONS RATHER

THAN A COMMITMENT. IT MUST NOT BECOME A CONSTRAINT

A WRITTEN PLAN SHOULD ANTICIPATE THE NEED FOR

FLEXIBILITY

PLANNING IN THE MILITARY IS MUCH MORE DIFFICULT TO

DETERMINE THAN IT MIGHT BE FOR CORPORATE BUSINESS

BECAUSE OF POLITICAL ACTORS

PLANNING (CONT)

45

STRATEGIC THINKING, STRATEGIC ACTING, AND STRATEGIC

INFLUENCING ARE ESSENTIAL SKILLS TO ADAPT, INNOVATE AND

SUCCEED WELL INTO THE FUTURE

LET’S TAKE A 10-YEAR TRANSFORMATION PLAN OF ANY

MILITARY ORGANIZATION

THERE IS NO WAY YOU CAN PLAN FOR THE FUTURE, LET

ALONE PREPARE FOR IT, IF YOU DO NOT KNOW YOUR

BUSINESS

PLANNING (CONT)

46

SCOPE







47

CASE 1 - HISTORY WILL CREDIT SHINSEKI

CASE 2 – COLLAPSE OF THOMAS COOK

SELECTED CASE STUDIES (CONT)

48




49

PLANNED TO TRANSFORM THE US

ARMY TO A LIGHTER AND MORE

DEPLOYABLE FORCE

IMPLEMENTED THE WEARING OF

THE BLACK BERET FOR ALL US ARMY

PERSONNEL

HE HAD PROBLEMS WITH

CHANGING AN ORGANIZATIONAL

CULTURE OF THE US ARMY

CASE ONE – HISTORY WILL CREDIT SHINSEKI

50

GEN ERIC SHINSEKIUS ARMY CHIEF OF STAFF

HE HAD CONFLICTING

CLASHES WITH THE SECRETARY OF

DEFENCE, DONALD RUMSFELD,

DURING THE PLANNING OF THE

IRAQI WAR

HE RECOMMENDED

“SOMETHING IN THE ORDER OF

SEVERAL HUNDRED THOUSAND

SOLDIERS.” BUT HIS BOSS,

DONALD RUMSFELD, REJECTED HIS

PROPOSALS IN STRONG TERMS

CASE ONE – HISTORY WILL CREDIT SHINSEKI(CONT)

51

GEN ERIC SHINSEKIUS ARMY CHIEF OF STAFF




52


53

BREXIT?INVESTORS APATHY?CORPORATE GOVERNANCE?INTERNET AGE?TOO BIG?

ESTABLISHED IN 1841 BUT COLLAPSED IN 2019

HOSPITALITY BUSINESS-TOURS, HOTELS, AIRLINE, TRAVELLERS’ CHEQUES

BUSINESSES AND ORGANIZATIONS FAIL:

BAD MANAGEMENT

MISGUIDED LEADERSHIP

STRATEGIC FAILINGS

MARKET CHANGES

BAD LUCK

SELECTED CASE STUDIES – TAKE WAY

54

SCOPE







55


56

58

CONCLUSION

60

LEE ELLIS

ANYONE CAN STEER THE

SHIP THROUGH THE

CALM WATERS; THE

REAL CAPTAINS TAKE IT

THROUGH THE STORMS

THANK YOU

61

REFERENCES BILL GEORGE ET AL, DISCOVERING YOUR AUTHENTIC LEADER, A

HARVARD BUSINESS REVIEW BOOK, 1999

JAMES MACGREGOR BURNS, POLITICAL HISTORIAN LEADERSHIP,

(HARPER & ROWS: NEW YORK, 1978)

BERNARD M BASS, PROFESSOR OF ORGANIZATIONAL BEHAVIOUR,

STATE UNIVERSITY OF NEW YORK, BASS AND STOGDILL’S BOOK OF

LEADERSHIP, 3RD ED, (FREE PRESS: NEW YORK, 1990)

DEFENCE LEADERSHIP CENTRE. THIS DEFINITION IS NOT THE LAST

WORD ON THE MEANING OF LEADERSHIP WHICH REMAINS A WORK IN

PROGRESS. HOWEVER, IT DOES PROVIDE A FOUNDATION ON WHICH TO

BUILD UNDERSTANDING

62

REFERENCES (CONT) JOHN K POTTER, ON WHAT LEADERS REALLY DO, A HARVARD

BUSINESS REVIEW BOOK, 1999

GD SHEFFIELD, LEADERSHIP IN THE TRENCHES, (MACMILLAN

PRESS: LONDON, 2000)

MARK GOYDER, LIVING TOMORROW’S COMPANY-REDISCOVERING

THE HUMAN PURPOSES OF BUSINESS, GOWER PUBLISHING,

ENGLAND, 1995

LEE ELLIS, LEADING WITH HONOUR: LEADERSHIP LESSONS

FROM THE HANOI HILTON, FREEDOM STAR MEDIA, 2012

63

MODULE 2STRATEGIC PLANNING &

EXECUTION

BY PROF. NAT OFO

Outline• Introductory Matters• Strategic Planning• Strategic Planning Process• Case Studies• Concluding Remarks

61

Introductory Matters1. What is Strategy?2. What is a Strategic Plan?

62

Introductory Matters

Strategy means consciously choosing to be clearabout your organisation’s direction in relation towhat’s happening in the dynamic environment.

1. What is Strategy?

According to Prof. Michael Porter of HarvardBusiness School, strategy:

• is a set of long-term choices that anorganisation makes to distinguish itself fromcompetitors.

• defines a company’s distinctive approach tocompeting and the competitive advantages onwhich it would be based.

Introductory Matters1. What is Strategy? (cont’d.)

Strategy IS NOT:• aspirations• execution• a vision• flexibility• innovation• technology• downsizing | restructuring• mergers | acquisition | business combination• outsourcing


• A strategic plan is the formalised roadmap thatdescribes how an organisation will execute itschosen strategy.

• A strategic plan spells out where an organisationis going over a given time-frame (e.g., a year ormore) and how it is going to get there.

• A strategic plan is a management tool that servesthe purpose of helping an organisation do abetter job, by focussing the energy, resources,and the time of everyone in the organisation inthe same direction.

2. What is a Strategic Plan?


• Essentially, a strategic plan is concerned with: Where are we? Where are we going? How do we get to where we are going?

• Therefore, a strategic plan is the output of thestrategic planning process.

2. What is a Strategic Plan? (cont’d)

66

QUESTIONIs a Strategic Plan the same thing as a Business Plan?

Strategic Planning1. Definition2. What Strategic Planning Is Not3. Planning Booby Traps

67

4. Benefits of Strategic Planning5. Strategic Planning Golden Tips6. Surprising Strategic Planning Stats.

Strategic Planning

• Strategic planning is a systematic process fordeveloping a (strategic) plan for the overalldirection of an organisation or entity for thepurpose of optimising the organisation's orentity's future potential.

• Strategic plan is the process by which anorganization makes decisions and takes actionsthat affect its long-term performance.

1. Definition

68

Strategic Planning

Strategic planning is:• the continuous process of making present

entrepreneurial decisions systematically with thegreatest knowledge of their futurity,

• systematically organising the efforts needed tocarry out these decisions, and

• measuring the results of these decisions againstthe expectations through organised systematicfeedback.

1. Definition (cont’d.)

69

Strategic Planning2. What Strategic Planning Is Not

70

Strategic planning IS NOT:• a bundle of techniques | box tricks• the application of scientific methods• about forecasting the future• about future decisions

Strategic Planning

• Relying on bad information or no information• Ignoring what your planning process reveals• Being unrealistic about your ability to plan• Planning for planning sake• Get your house in order first• Avoid copy and paste.

3. Strategic Planning Booby Traps

71

Strategic Planning

• Superior performance.• Identification of organisational and

environmental conditions• Group decision-making process: Better decisions Buy-In

4. Benefits of Strategic Planning

72

Strategic Planning

• Planning team.• Allow time for big picture, strategic thinking• Commitment from key people in your

organisation.• Open and free discussion• Think about execution before you start.• Use of a facilitator• Make your plan actionable.• Don’t write your plan in stone.• Clearly articulate next steps after every session• Make strategy a habit, not just a retreat

5. Strategic Planning Golden Tips

73

95% 90% 86% 60%of a typical

workforce does not understand its organization’s

strategy.

of organisations fail to execute their

strategies successfully.

of executive teams spend less than one

hour per month discussing strategy.

of organizations do not link strategy to

budgeting.

Source: Balanced Scorecard Collaborative

Strategic Planning6. Surprising Strategic Planning Stats.

Strategic Planning Process1. Strategic Planning Process in a Nutshell2. Strategic Analysis3. Strategy Formulation

75

4. Strategy Execution5. Strategic Control6. Elements of a Strategic Planning Framework

Strategic Planning Process1. Strategic Planning Process in a Nutshell

76

Strategic Control

Strategy Execution

Strategy Formulati

on

Strategic Analysis

What is the current

position of the organization?

Where does the

organization want to be?

How can the organization get to where it wants to

be?

How will the organization know when

it has arrived?

Strategic Planning Process

The purpose of strategic analysis is to evaluate thepresent situation of the organisation.

2. Strategic Analysis

77

This centres on three key activities:• Assessing the Mission of an Organisation• Internal Environmental Analysis• External Environmental Analysis


The mission of an organization reflects itsfundamental reasons for existence.


78

Mission statements vary greatly among firms.However, every mission statement should describethree primary aspects of the organization:

• Its primary products or services.• Its primary target markets.• Its overall strategy for ensuring long-term

success.

Assessing the Mission of an Organisation


The purpose is to identify assets, resources, skills,and processes that represent either strengths orweaknesses for the organisation.


79

Strength:• Aspects of the organisation’s operations that

represent potential competitive advantages ordistinctive competencies.

Weakness:• Areas that are in need of improvement.

Internal Environmental Analysis

Strategic Planning Process2. Strategic Analysis

80

Internal Analysis: Areas of Focus

Capabilities:• Human Capital• Organisational Capital• Knowledge Capital.

Resources:• Financial Resources

Processes:• Operational Process• Customer Management Process• Relationship Process• Innovation Process [R & D]


81

Internal Analysis: Areas of FocusOther Process Areas:

• Technology Management• Communication• Productivity

Current Customers:• Customer Mix• Satisfaction• Loyalty• Strength of your value chain• Strength of your value proposition


The purpose is to identify those aspects of theenvironment that represent either an opportunityor a threat to the organisation.


82

External Environmental Analysis

Opportunity:• Those environmental trends which the

organisation can capitalise and improve itscompetitive position.

Threat:• Conditions that can jeopardise the

organisation’s ability to prosper in the longterm.


83

External Analysis: Areas of FocusOperating Environments:

• Political/Legal• Environment• Social• Technologies

Industry:• New Competitors• Substitute Products• Power of Suppliers• Power of Buyers• Competitive Rivalry


84

External Analysis: Areas of FocusMarket:

• Growing or Shrinking Market• Size of Market• New Markets

Competitors:• Who they are• Their strengths and weaknesses• Their strategies• Their objectives

Strategic Planning Process3. Strategy Formulation

85

Step 1:Development, verification, or refinement of anorganisation’s purpose, as defined by yourorganization’s:

• Mission: what an organization will strive to accomplishover the short-term.

• Vision: what an organization will strive to become orwhere it hopes to be in the future.

• Sweet spot: where an organization’s passion, abilities,and purpose or reason for existence intersect.

Strategic Planning Process3. Strategy Formulation

86

Step 2:

Development, verification, or refinement of anorganisation’s strategic goals, to add clarity andspecificity to what an organisation will strive toaccomplish in terms of:

• Customer service• Product development• Growth• Quality• Innovation• Human resource capabilities

Strategic Planning Process4. Strategy Execution

87

Step 1:Identification and prioritisation of the means (i.e.,the strategies) by which an organisation will achieveits strategic goals.Step 2:An action plan built around the strategies,consisting of the:

• Identification of tactics.• Assignment of responsibilities.• Establishment of timelines.• Delineated metrics.


4. Strategy Execution

88

Step 3:A contingency plan, consisting of the identification of:

• Challenges likely to impede implementation.• Viable countermeasures for each of the obstacles.

Step 4:Execution considerations, consisting of a description of:

• What an organisation will do to ensure constant andconsistent execution throughout the entireorganization.

• How an organisation will help ensure that everyone hasthe needed levels of awareness, understanding, buy-in,commitment, and advocacy.


Strategic control involves monitoring theexecution of the strategic plan and ensuringquality and effectiveness in terms oforganizational performance.

5. Strategic Control

89

Feed Forward Controls:• Designed to identify changes in the external

environment or the internal operations of theorganization that may affect its ability to fulfill itsmission and meet its strategic goals.

Feedback Controls:• Compare the actual performance of the organization to

its planned performance.


• Gather, analyze, and summarize information.• Analyze information relating to the organization ’ s value

proposition and the internal factors and external forces likely toimpact its short- and long-term success.

• Create (or verify) your organization ’ s mission, vision, and sweetspot.

• Create strategic goal statements.• Identify and prioritize the means by which you will achieve the

strategic goals.• Identify tactics, assign roles and responsibilities, establish timelines,

and define metrics.• Plan for the unexpected and unanticipated.• Take steps to ensure constant and consistent execution throughout

the entire organization.• Take steps to continuously improve.

6. Elements of a Strategic Planning Framework

90

Case Studies1. What would influence an old generation bank acquiringanother old generation bank?

91

2. Why would a thrive new generation bank acquirestruggling new generation banks?

Concluding Remarks

92

Strategic planning allows an organisation to bring its “collective intelligence” together to apply to external forces, internal factors, and

current and emerging challenges and opportunities likely to impede or support the

organisation in attaining its vision and accomplishing its mission.

MODULE 3

BLUE OCEAN STRATEGY IN A RECESSIONARY ECONOMY

BY PROF. NAT OFO

Outline• Introductory Matters• Recessionary Economy• Blue Ocean Strategy• Steps Toward Making the Blue Ocean Shift• Case Study• Concluding Remark

94

Introductory Matters1. Recession Defined2. Blue Ocean Strategy Background

95


Technically, a recession means a decline in thegross domestic product (GDP) of a country for twoconsecutive quarters.

1. Recession Defined

96

GDP is the value of all final goods and servicesproduced in a country in a given year.


• Blue Ocean Strategy isthe title of a bookpublished in 2005 andwritten by W. ChanKim and RenéeMauborgne, who areprofessors at INSEAD.

2. Blue Ocean Strategy Background

97


• The book presentsanalytical frameworksand tools to foster anorganisation’s ability tosystematically createand capture “blueoceans” — unexplorednew market areas.

2. Blue Ocean Strategy Background

98

Recessionary Economy1. Nature of Recession2. Shapes of Recession3. Signs of Recession

99

4. Recession Versus Depression

Recessionary Economy

• A recession is a temporary downturn, slowdown,contraction or deceleration in economic activitiesover a sustained period of time.

• A recession is destructive. It creates wide-spreadunemployment. As the unemployment rate rises,consumer purchases fall off even more.Businesses can go bankrupt.

1. Nature of Recession

100


• U-shaped refers to prolonged slump.• V-shaped refers to short-and-sharp contractions

followed by rapid and sustained recovery.• W-shaped refers to double-dip recessions.

2. Shapes of Recession

101

QUESTIONWhat type of recession do you think would be thefallout of the global coronavirus calamity?


• Rate of unemployment assumes disturbingproportions. People lose their jobs while freshgraduates would have difficulty in securingemployments.

• Companies encourage voluntary retirements orengage in downsizing/restructuring to cut costs.

• Companies start releasing depressingperformance figures.

• Borrowers default or are unable to pay back theirloans.

• The Gross Domestic Product continues itsdownward fall.

3. Signs of Recession

102


• Prices of essential commodities, such as food andutilities, skyrocket and the government seemshelpless in checking them.

• Prices of shares and properties drop significantly,yet there are no ready buyers for them.

• People terminate their bank deposits or withdrawtheir savings or sell off other assets to meet day-to-day expenses.

3. Signs of Recession (cont’d)

103


• A recession can become a depression if it lastslong enough. In a recession, the economycontracts for two or more quarters. A depressionwill last several years.

• For example, the Great Depression lasted 11years (1929-1939).

4. Recession Versus Depression

104

Blue Ocean Strategy1. Blue Ocean Strategy as a Concept2. Red Ocean3. Blue Ocean

105

4. Red Ocean vs. Blue Ocean5. Value Innovation6. Four Actions Framework7. Strategy Canvas

Blue Ocean Strategy1. Blue Ocean Strategy as a Concept

106

• Unlike the conventional approach to business(the “red ocean strategy”) of beatingcompetition, the “blue ocean strategy” tries toalign innovation with utility, price and costpositions.

• Blue Ocean Strategy mocks at the phenomena ofconventional choice between product/servicedifferentiation and lower cost, but rathersuggests that both differentiation and lowercosts are achievable simultaneously.

• Red oceans represent all the industries inexistence today – the known market space.

• In the red oceans, industry boundaries aredefined and accepted, and the competitive rulesof the game are known.

• Here companies try to outperform their rivals tograb a greater share of product or servicedemand.

• As the market space gets crowded, prospects forprofits and growth are reduced. Productsbecome commodities or niche, and cutthroatcompetition turns the ocean bloody; hence, theterm “red oceans”.

Blue Ocean Strategy2. Red Ocean

107

• Blue oceans, in contrast, denote all theindustries not in existence today – the unknownmarket space, untainted by competition.

• In blue oceans, demand is created rather thanfought over.

• There is ample opportunity for growth that isboth profitable and rapid.

• In blue oceans, competition is irrelevantbecause the rules of the game are waiting to beset.

• Blue ocean is an analogy to describe the wider,deeper potential of market space that is not yetexplored.

Blue Ocean Strategy3. Blue Ocean

108

Blue Ocean Strategy4. Red Ocean vs. Blue Ocean

109

• The cornerstone of blue ocean strategy is “valueinnovation”.

• Value innovation is the simultaneous pursuit ofdifferentiation and low cost, creating value for boththe buyer, the company, and its employees, therebyopening up new and uncontested market space.

• The aim of value innovation is not to compete, but tomake the competition irrelevant by changing theplaying field of strategy.

• The strategic move must raise and create value for themarket, while simultaneously reducing or eliminatingfeatures or services that are less valued by the currentor future market..

Blue Ocean Strategy5. Value Innovation

110

Blue Ocean Strategy5. Value Innovation (cont’d.)

111

Blue Ocean Strategy6. Four Actions Framework

112

• The Four Actions Framework is used to helpcreate value innovation and break the value-costtrade-off.

• Value innovation challenges Michael Porter'sidea that successful businesses are either low-cost providers or niche-players. Instead, blueocean strategy proposes finding value thatcrosses conventional market segmentation andoffering value and lower cost..

Blue Ocean Strategy6. Four Actions Framework (cont’d.)

113

Blue Ocean Strategy7. Strategy Canvas

114

• The strategy canvas is both a diagnostic and anaction framework for building a compelling blueocean strategy.

• It captures the current state of play in the knownmarket space.

• This allows you to understand: where the competition is currently investing, the factors the industry currently competes

on in products, service, and delivery, and what customers receive from the existing

competitive offerings on the market..

Blue Ocean Strategy7. Strategy Canvas (cont’d.)

115

Steps Toward Making the Blue Ocean ShiftStep 1: Get StartedStep 2: Understand Where You Are NowStep 3: Imagine Where You Could Be

116

Step 4: Find How You Get ThereStep 5: Make Your Move

Steps Toward Making the Blue Ocean Shift

• Identify the businesses or product/serviceofferings.

• Identify which offerings are pioneers, migrators,and settlers.

• Plot your portfolio using the pioneer-migrator-settler map.

• Put together the right team that is going to carryout the blue ocean initiative.

Step 1: Get Started

117


• Have a clear and shared picture of the currentstrategic landscape.

• The Strategic Canvas.• Have a Compelling Tagline.

Step 2: Understand Where You Are Now

118


• Use the buyer utility map to discover the painpoints of the industry.

• Determine the buyer experience using the SixStages of the Buyer Experience Cycle.

• Understanding who your noncustomers are andwhy they tend to stay away from your industry.

Step 3: Imagine Where You Could Be

119


• Use the Six Paths Framework to open up a newValue-Cost frontier.

• Use the Four Actions Framework to developalternative blue ocean opportunities.

Step 4: Find How You Get There

120


The Six Paths FrameworkStep 4: Find How You Get There (cont’d.)

121


• Host a blue ocean fair to choose which blueocean move to pursue.

• Thereafter: select your blue ocean move, rapidly test it in the market, and refine it to maximize its potential.

• Finalise and launch your blue ocean move.

Step 5: Make Your Move

122

Case Study1. Background2. What was Done?3. What was Achieved?

123

4. Critical Success Factors

Case Study

• Malaysia’s Community Rehabilitation Programme [MCRP].• The MCRP was designed to rehabilitate petty criminals,

who constitute the largest proportion of the country’sprisoners.

• Since the shift, the relapse rate has reduced, families arethrilled, and society is safer.

• In terms of cost, a MCRP centre is 85 percent cheaper tobuild than a conventional prison and 58 percent cheaper torun.

• Based on current numbers, MCRP is projected to deliverover US$1 billion in reduced costs and social benefits in itsfirst decade.

• Perhaps its greatest gift, however, is the way MCRP enablesformer inmates to transform their lives by giving themhope, dignity, and the skills to become productive membersof society.

1. Background

124

Case Study

• In a period of six months, over 7,400 trained police officerswho had been doing desk work were released to do streetpatrols, while 4,000 civil servants were placed at the policestations to take over the officers’ administrative duties.

• A blue ocean opportunity existed to quickly moveunderleveraged, competent administrators locked in the“cold spots” of civil service departments to the “hot spots”at police stations. The team reckoned that such a movewould allow the government to make an initial blue oceanshift, achieving high impact at low cost with rapidexecution.

2. What was Done?

125

Case Study

• Efficiency gains identified in the course of the shift processaccounted for the reduction in personnel and furtherlowered costs. Compared with a conventional red oceanapproach, where new police officer candidates wererecruited, trained, and sent out on patrols, this cross-agency and cross-departmental move saved thegovernment hundreds of millions of US dollars and had arapid impact on street security.

• From 2009 to the end of 2010, reported street crimesdropped by 35 percent, and they have continued to godown since then.

• Even more rewarding were the changes in people’sattitudes and behaviours.

3. What was Achieved?

126

Case Study

• Today, six CRP centres have been established and some10,000 inmates rehabilitated.

• Joint patrols in crime hot spots, and the military has begunsharing their extra training facilities with the police. Thishas not only allowed the police to put trained officers onthe streets more rapidly, but also resulted in significant costsavings by negating the need to build new police trainingfacilities..

3. What was Achieved? (cont’d.)

127

Case Study

• The idea/proposal must be designed to meet thethree blue ocean criteria of high impact, low cost,and rapid execution.

• The principles of fair process — engagement,explanation, and clear expectations — need to beobserved in all discussions and decision making.

• Market-creating tools like the strategy canvas, thefour actions framework, and the ERRC grid areused, as applicable, and reflected in alldiscussions and reports..

4. Critical Success Factors

128

Case Study4. Critical Success Factors (cont’d.)

129

Concluding Remark

130

Even though traditional competition-based strategies (red ocean strategies) are necessary,

they are not sufficient to sustain high performance over time. Companies need to go

beyond competing. To seize new profit and growth opportunities they also need to create

blue oceans.

Nat OFO [Ph.D., B.L.]Professor of Corporate Law & Governance

College of LawIgbinedion University, Okada

Edo State.

Telephone: 0805 502 9671Email: [email protected]

MODULE 4PERSONAL BRANDING FOR

BUSINESS SUCCESS

BYMRS. NONYE CALLY-BECHI

WELCOME

Learning Outcomes

• Understanding Personal Brand• Why you should Build your personal Brand • Understanding who you are: Authenticity • Practice introducing yourself in an authentic,

memorable way to showcase your accomplishments without arrogance

• Learn valuable communication skills to apply throughout your professional life

• Self-marketing & Networking skills• Draw upon your military experiences to create a

compelling branding statement

Exercise

• Draw out the most significant, interesting, valuable moments from your military service so far, create your own personal brand statement.

WHAT DO YOU UNDERSTAND BY BRANDING

• THE FOUNDATION OF PERSONAL BRANDING RESTS ON AUTHENTICITY: THE ABILITY TO TAP INTO YOUR GENUINE, HUMBLE, AND INDIVIDUAL HUMAN QUALITIES FROM WHICH YOUR IDENTITY, PERSONALITY, AND CHARACTER STEM.

•--- NEIL PATEL

•

Definition…

• Personal branding is essentially the ongoing process of establishing a prescribed image or impression in the mind of others about an individual, group, or organization. It can also be described as the sum total of what people think and feel about you.

Why should you build your personal brand?

•

• Building a recognizable personal brand opens professional opportunities.

• Creating a vision for your future and implementing that vision can lead to:

• A better job/Job creation/Entrepreneurship • Better contacts and clients for your company

Recognition/Promotion

The most important aspect to consider when creating a

Personal Brand is…

• ……………….know thy self.

• …..have a clear understanding of what makes you TICK.

UNDERTSANDING WHO YOU ARE

• The following steps will give you a better understanding of who you are today and from there you can easily figure out where you want to be in the future

1. SET YOUR VALUES: MAKE IT COUNT

• Making your values count: • Your values are the things that drive your life. They’re at the core of

your being and you refer to them when making decisions: For example, a person might have the follow set of values:

• Family• Friends• Community• Ambition• Intelligence• These values define the things that are most important to the

person. When faced with a decision such as taking a new job, the person would consult with their personal values. They would ask themselves what the best choice would be in terms of their family, their friends and the other values on the list.

2. TWO PRIORITIZE YOUR VALUES

• There will be situations in life when you’ll be faced with decisions that put your values at odds. For example, you might be considering a new job. It might fit into your ambition and intelligence values, but if might require more time away from your family and the job might not have the same community values that you have.

• The goal of building your personal brand is not just to get a better job or to grow your company. It’s about finding happiness with your professional life. The decisions you make will be more likely to lead to happiness and follow your values

3. IDENTIFY YOUR PASSIONS

• Your passions are the things that you like doing with your time. Some of your passions may overlap with your values, but they are generally different.

• A key to creating a successful personal brand is to identify your passions and make it your goal to experience those passions in your professional life.

• A passion is something that interests you. Passions intrigue you and make you want to investigate. They make you want to get better for personally driven reasons. A passion is something you would do even if you weren’t being paid or even

4. IDENTIFY YOUR TRAITS

• The next step is to identify your traits. These are the unique aspects of your personality that help to shape the person you are. Traits are things that give others a key inside your brain.

• There are a few different theories on personality traits. One is the Big Five Personality Traits.

• The Big Five include the following traits:• Openness to experience• Conscientiousness• Extraversion• Agreeableness• Neuroticism

Big five personality traits

• Openness to Experience: Openness reflects the degree of intellectual curiosity, creativity and a preference for novelty and variety a person has. It is also described as the extent to which a person is imaginative or independent and depicts a personal preference for a variety of activities over a strict routine.

• High openness can be perceived as unpredictability or lack of focus, and more likely to engage in risky behaviour or drug taking.

• Conscientiousness: A tendency to be organized and dependable, show self-discipline, act dutifully, aim for achievement, and prefer planned rather than spontaneous behavior. High conscientiousness is often perceived as stubbornness and obsession. Low conscientiousness is associated with flexibility and spontaneity, but can also appear as sloppiness and lack of reliability.

• Extraversion: Energy, positive emotions, assertiveness, sociability and the tendency to seek stimulation in the company of others, and talkativeness. High extraversion is often perceived as attention-seeking, and domineering. Low extraversion causes a reserved, reflective personality, which can be perceived as aloof or self-absorbed.Extroverted people tend to be more dominant in social settings

• Agreeableness: A tendency to be compassionateand cooperative rather than suspicious and antagonistic towards others. It is also a measure of one's trusting and helpful nature, and whether a person is generally well-tempered or not. High agreeableness is often seen as naive or submissive. Low agreeableness personalities are often competitive or challenging people, which can be seen as argumentativeness or untrustworthiness.

• Neuroticism: • Neuroticism identifies certain people who are more prone to

psychological stress. The tendency to experience unpleasant emotions easily, such as anger, anxiety, depression, and vulnerability. Neuroticism also refers to the degree of emotional stability and impulse control.

• A high stability manifests itself as a stable and calm personality, but can be seen as uninspiring and unconcerned. A low stability expresses as a reactive and excitable personality, often very dynamic individuals, but they can be perceived as unstable or insecure. It has also been researched that individuals with higher levels of tested neuroticism, tend to have worse psychological well-being.

IMPRESSION MANAGEMENT

• WHAT DO YOU WANT TO PROJECT?• HOW DO OTHERS SEE YOU?

Managing Impressions

• The impressions others form of you are seldom based on rational thought or independent investigation.

• They are the product of hundreds of associations we all make between outwardly obvious characteristics and the invisible inner qualities we believe they reflect.

• The key to great impression lies in these four qualities:• Trustworthiness• Caring • Humility• Capability

• There are secrets to forging positive impressions, so as to convey your trustworthiness, caring, humility and capability through a combination of traits and characteristics from which others will infer that you can and will fulfil these needs.

• It is also important to note that some outward traits are toxic to the compass qualities.

Effective Impressions management requires that:

• Learn which traits have positive or negative effects on which compass qualities.

• Accentuate the traits that enhance all four qualities

• Eliminate those traits that are toxic to all four compass qualities

• Retain those that have both positive and negative elements, but cure their negative side effects with positive compensating traits.

Tips: Impression management technique.

1. Col E.M’s outgoing and energetic nature are pure positives. The y enhance others’ perceptions of all four compass qualities. He should maintain them, as long as he doesn’t go off the deep end.

2. His obvious displays of impatience and confrontation are toxic, and have no redeeming value. He should resolve to eliminate them.

3. His size , powerful voice, assertiveness, direct communication style and obvious confidence are all double edged swords. They are likely to create the impression that he is neither caring nor humble. They can make him appear intimidating, overpowering, unfriendly and arrogant.

4. He should blunt his sharp edges, e.g lower his voice a bit, smile more, engage in warmer, more frequent eye contact. Make a point to say ‘’Good morning’’ and ask about their lives and passions, wear warmer and more approachable colours.

Continue…• None of the suggestions above will diminish his colleagues

positive impressions of him, rather, collectively; they will soften his intimidating persona in ways that will let his colleagues know he is also caring and humble.

• Impression does not require that you compromise your integrity, abandon your individuality, or discard the traits that you cherish most.

• It provides a process by which you can eliminate those traits you dislike and enhance those that clearly improve your image.

• It leads to positive and lasting change because it brings out the best in each of us.

YOUR IMAGE: MAKING IMPRESSIONS

• First impressions are formed in less than 30 seconds. And within this short period, people make certain deductions such as the subject’s socio-economic status, educational level, competence level and even the level at which they would interact with the subject.

• Research has shown that 55% of the impression people form is influenced by appearance and the impression people form is hardly based on rational thinking or personal investigations.

APPROPRIATE ACCESSORY USAGE for women: Professional dressing

• Well-groomed hairstyle, Well-manicured nails• The keys are smartness and professionalism + Elegance• To an extent, a woman can accentuate what she has, to

make her look more elegant.• Suits (start with dark colours) • Matching skirt or trouser suits: • Coordinating skirt suits Handbags - dark leather, medium

sized (if possible same colour as your shoes)• Belts should always be used when clothes have belt loops• Jewellery (Nothing dramatic)• Shoes: (dark colours to start with

APPROPRIATE ACCESSORY USAGE for men

• Leather belt – It must not be cracked and the buckle should be simple

• Crisp white pocket handkerchief • Cufflinks • Wrist Watch• Thin wallet • Shoes: well-polished, well-heeled, well-soled

(coordinate with belt colour)• The key is ‘professionalism and savvy’.• Suits must fit correctly, be mindful of shoulder pads.

• In black, navy blue, or grey• When standing or walking, undo last button• When seated undo all• Shirts look more powerful in plain white or blue or any light colour.• Shirts must be ironed appropriately.• Use perfume or deodorant sparingly.• No Jewellery please (apart from wedding ring & wrist watch)• Plain & Pattern, very sleek • Ties should be colorful and bright. It should complement and not rival.• Ties end at top of belt, learn to knot ties appropriately.• Socks - mid or full calf in length• Nice & Simple patterns • Dark colors – never white, yellow, green etc• No holes please!

HANDSHAKES

• A handshake is more than just a greeting. It is also a message about your personality and confidence level. In business, a handshake is an important tool in making the right first impression.

• While the art of handshaking does vary within cultures, but “rules” are pretty universal.

Rules of Handshake1. Begin with an Oral Introduction of YourselfBefore extending your hand, introduce yourself. Extending your hand should be part of an introduction, not a replacement for using your voice. Extending your hand without a voice greeting may make you appear nervous or overly aggressive.2. Pump Your Hand Only 2-3 TimesA business handshake should be brief and to the point. Consider a handshake a short “sound bite” greeting, not a lengthy engagement. Holding on for more than three or four seconds can make other people feel uncomfortable.3. Shake from Your ElbowIf you shake from the shoulder, using your upper arm instead of just your forearm, you risk jolting your handshake partner. The idea is to connect, not be overbearing.

4. Do Not Use a Forceful GripA handshake should be a friendly or respectful gesture, not a show of physical strength. An uncomfortable handshake is never a pleasant experience for anyone. 5. Avoid Offering a “Fish Hand” A limp hand is never a good idea when it comes to a business handshake. Do return the grip, but do not get into a power struggle, even if the other person squeezes too hard.6. Forget “Lady Fingers”

This is not a Southern Cotillion, this is business. Offering only your fingers to shake may be appropriate in some social settings, but in business settings you are an equal, not a “lady.” Extend your entire hand, and be sure to grasp using your entire hand as well.

7. One Hand is Better than TwoAvoid the urge to handshake with two hands. It is always better in business introductions to use only one hand – your right hand – for the shake. The use of two hands with strangers is seen as intrusive, and too personal. In fact, a two-handed shake is called the “politician’s shake,” because it appears artificially friendly when used on people you barely know.

8. Shaking a Sweaty HandIf you shake hands with someone who has sweaty palms, do not immediately wipe your hands on your clothing, handkerchief, or tissue. This will further embarrass the other person, who is probably already aware they have sweaty hands. You can discretely wipe them on something after you are out of site, and wash

Creating your personal brand statement

• What value would you say you provide? What problems do you easily solve for others? If you get stuck don't be afraid to ask close friends or co-workers.

• What makes you unique? What's your unique selling proposition? Your USP is the one single statement that will single you out from among your competition.

Grooming issues

• Before we go…………

Outward Display of Tasteless Behaviour

Nose/ear picking in publicBiting fingernails

Yawning

Pinching pimplesCracking

knuckles and joints

Scratching

Passing Gas

Adjusting

Excessive Drinking

Less Trustworthy Unreliable Considered not

capable

Same with Excessive Joking!

MODULE 5FINANCIAL INTELLIGENCE AND

WEALTH CREATION THROUGH SMEs

BYMrs. TOPE OMAGE, FCA, CFE

Can You Imagine!• Out of 100 people at retirement• 49 will be dependent on family and charity• 29 will be dead• 12 will be broke• 5 will still be working• 4 will be financially independent and • 1 will be rich• Who will you be?Know where you are, where you want to be and how to get there

• What is financial Intelligence(FI)? Financial Intelligence or wisdom about the financial aspects of business involves reading, understanding, interpreting and analysing financial statements. Berman and Knight

• Every business owner or manager must have sufficient knowledge to understand the assumptions, interpret the numbers analyse them and be able to make effective decisions. Knowledge is power. Financial Knowledge gives more.

What is Financial Intelligence?

174

Financial inteliigence

Source of Finance

Statutory and Regulatory

responsibility

Organisation and staffing

Budget

Records and Bookkeeping

Financial reporting

Basics of Financial Intelligence

175

• Organisation and Staffing: Legal structure: sole proprietorship, partnership, limited liability. Right staff in right role

• Book keeping/Accounts: Financial reports, Accounting system• Accounting Principles:• Cash or accrual• Matching

• Statutory/Regulatory Obligation: Taxes, Auditing, Pension• Filing of reports

• Budget• Sources of Finance:• Equity or Owner finance (savings, gift, credit)• Crowd Financing (Family, cooperative and small lenders)• Debt (Bank, Big Investors)

Basics of Financial Intelligence

176

Sources of fund

Personal Equity◦ Loan from friends and family◦ Bank loan- term loan◦ -Overdraft, O/D

Intervention funding eg MSMEF, ACGSF, BOI, NIRSAL, YouWIN, DBN, Access bank women Desk, Donor Agencies, angel investors

-Sale and lease back, Pre-order sales-Credit purchase (Mortgage co in Lekki)

• Budget is a Financial plan. Provides yardsticks for evaluating performance

• How many of us have budgets?• Are the budgets written down or in our minds, they are

essential in preparing business plans• Do the budgets balance or they are just wishes and wants• Budgets must be compared with actual to monitor variance• What are the impediments of doing budgets?

BUDGET and BUDGETING

178

Financial Management- Have a plan and a budget

179Source: Economics Times

Financial Management- Have a plan and a budget

180

Budgeting is simply:developing a plan to spend your money

WISELY.

Prioritize your needs over your wants.

• Financial statements – the income statement, balance sheet, and statement of cash flows and notes to the accounts – are the core of a financial report, a rudimentary understanding at least is needed

• Choice of legal structure: sole proprietorship, partnership or limited liability company; each having advantages and disadvantages and income tax law implications

181

Financial Statements

Legal structure/Governance

Governance, Ownership and Management

o Sole Ownership - think, decide and execute your businesses alone, but note that you need to separate the business from your family ties and considerations.

o Partnership – means joint thinking, joint decision and joint effort in the execution of projects. Choose the right partners

A. Income statement:• this shows how much surplus or deficit a company

has made within a period, that is whether the company made or lost money during the period and if so, how much. This is otherwise call Profit or Loss statement, Revenue statement, Statement of Financial Performance, Earning statement, Operation statement

Financial Report

183

B. Balance Sheet:• Assets are the company’s property: Cash, Bonds, stock,

machinery and Equipment, Patents, Inventory or stock of goods

• Current Assets: Assets in the Balance sheet that are expected to be used up or turned over with one year, termed Liquid asset and these are easily converted to cash. Money in the bank, Petty Cash, Cash received yet to be Banked, Money owed by customers, Raw materials for processing, Stock for resale

• Fixed Assets: Assets with useful life over one year, provide benefit for long periods over a year, may be difficult to convert to cash within a year. Plant, Property and Equipment, Vehicles, Furniture and fittings, Office Equipment, computers, fixtures and fittings, light plant and machinery.

Financial report -Contd

184

• Gross margin ratio = gross margin/Sales revenue

• Profit ratio = Net Income/Sales revenue• Sales revenue/Net income= amount of rev to make N1

profit

• Return on Equity = Net income/owners equity• Current ratio =current assets/current liabilities• Acid-test(Quick) ratio = liquid assets/current

liabities

185

Ratio Analysis

• Return on Assets ratio and financial leverage Gain = EBIT/net operating assets

• And many more others depending on how deep your analysis

• Comparison – year on year, intracompany, across the industry etc

186

Ratio Analysis –cont’d

Financial Management:- Save and invest for the rainy day. Needs are sustaining,

wants are entertainingNeeds have to be met, wants are luxuries that are

indulged in

187Source: Investment Advisor

Investment

• Savings- Coop savings, bank deposit, treasury Bills, Bonds and shares & stock

• Real estate• Mining• Entrepreneurship, SME

Small & medium EnterpriseIdentifying where to invest:a. Businesses that have either been tapped into,

exploited, grown or developed by Nigerian entrepreneurs.

b. Business opportunities that are either read of on the pages of newspapers, seen as their owners walked along the street, discovered through discussions with friends and relatives or inspired by God.

c. Micro businesses either have less than 10 employees, total assets of less than N5 million (excluding land and buildings) and/is operated by a sole proprietor/s.

d. Small & Medium Enterprises (SMEs) have asset base of between N5 million and N500 million (excluding land and buildings) and have employees of between 11 and 200.

Some MSMEs• . Agriculture & Agro-based businesses – production (poultry, grains

(maize guinea corn, millet), plantation, legumes (bambara, ground nut, ground nut, cow pea), orchards (pineapples, oranges, guava, mango, pears, plantain, banana , etc. ), fishery, livestock (goat, dogs, pig, sheep, cattle, rabbits grass cutters, etc.), snail farming, processing of

any of the above products• 2. Food Processing - wet and dry, garri, soybeans, fruit processing and

packaging e. g. special pies, fresh juice, dried ground pepper, tomatoes, cooked ripped plantain, corn flour mixture, etc.

• 3. Weaving & Knitting e. g. design of Christian dresses, caps, etc.• 4. Skills and Trades & Technical Non-agricultural Businesses e. g.

tailoring, fashion design, arts and crafts, sculpturing, carpentry , auto repairs and maintenance with vulcanizing, waste disposal and cleaning, shoe making and mending, book selling, newspapers

and magazine services, water packaging and sales.

Some MSMEs - Contd• 5. Commerce & Services - retail and merchandise or buying and

selling, GSM user services, party rentals, restaurant business, Christian music, literature, sales of video CDs & cassettes sales.

• 6. Groceries - sales of exercise books, biscuits, pencils, biros, tissue papers in mobile shop close to a primary or secondary schools.

• 7. Mobile kiosks & cold room business - vegetables (e. g. tomatoes, pepper, vegetable, oranges, banana, carrots, potatoes).

• 8. Venturing of materials: e. g. bread, fish, crayfish, buying in bulk, repackaging into small units that people can afford

Confidence/Caution

• If you don’t understand it don’t put your money there, if you put your money there then go and learn about it. Warren Buffet supports this, he should know because he’s considered the world’s most successful investor.

Utilization - Optimise Procurement procedure

◦ Stock management◦ Asset management◦ Asset disposal◦ An eye on expenditure

Training and retraining(technical, leadership skills, Networking skills)

Technology (including social media) Scanning the environment Beating competition Research and improvements Have an international perspective

193

Staying on Top

Financial Independence

194

• Single digit loans• Friends and family• Hire purchaseManaging Credit

Insurance

• Own property• Shares• Precious stones• Bonds and money market

Investment options

• No copying Joneses• No Impulse buying• Have a vision and long term planLifestyle change• Budgeting• Good record keeping• Pay yourself• Maximise your retirement saving• Save for known expenses, investment and emergencies

Financial Planning

• When you know where you stand and are not afraid. You are in control of your expenditure and have a good idea of your income.

1. What is Financial literacy2. What are your financial goals?3. Have a plan and a budget4. Save and invest for the rainy day5. Borrow responsibly6. Consider and insure your risks7. Prepare for the retirement of your dreams8. You have rights and responsibilities9. How to seek redress, consumer protection, servicom

WEALTH CREATION

195

• Have a budget• Budget for savings/Investment• Separate business and personal spending/funds• Have your eyes on the credit, pay your bills timely• Employ right and invest in HR• Maximize your opportunities• Look for new opportunities

196

Soft Issues

• ‘Me’ time• Watch your health• Maintain your family• Before and after all, be prayerful.• Having done all, win!• Laugh!

• Thanks for your attention!197

Conclusion

CORPORATE GOVERNANCE AND BOARDROOM SKILLS

By Tope Omage; FCA,MBA, FNIM198

199

Discussion Scope

• Nature and essence of Corporate Governance

• The fallacy of Agency Concept as prescription for good corporate governance

• Drivers of Corporate Governance Discussion

• Models(codes) of Corporate Governance• Key issues in Corporate Governance

200

Scope cont’d

• Highlights of the Bankers Committee Code of CG for banks in Nigeria

• Putting Governance into practice: the 10 “Principia”

• Boardroom skills required for good Corporate Governance

• Other soft Skills

201

The Nature and Essence of CG

• Concept of CG may be loosely described as the body of – rules, – processes and – structures

by which institutions and companies are regulated and governed with the primary objective of promoting a transparent and accountable system.

202


• It involves regulatory and market mechanisms and the roles and relationships between a company’s – management, – its board, – shareholders, – stakeholders and – the goals for which the company is governed

203


CORPORATE GOVERNANCE IS A MIXTURE OF LEGISLATIONS, NON-LEGISLATIVE CODES, SELF REGULATION AND BEST PRACTICES, STRUCTURE, PROCESSES, AND CORPORATE CULTURE GUIDING THE BEHAVIOUR OF DIRECTORS AND MANAGEMENT OF A COMPANY ALL DIRECTED TOWARDS ENSURING THE PROSPERITY OF THE COMPANY AND PROTECTING THE INTERESTS OF ALL STAKEHOLDERS.

204

CG and The Agency Concept

• The modern corporate business is built on the principle of separation of ownership and control and the Principal-Agent relationship

• The shareholders who own the company appoint directors who govern/oversee the company on their behalf.

205

CG and The Agency Concept

• The directors formulate the corporate strategy to achieve set objectives and meet market expectations and in turn employ managers and staff to implement the strategy.

• They also report periodically the results of the performance of the company to the shareholders

206

The Fallacy behind the Principal –Agent assumption

• The Board may be dominated by a CEO who manipulates the company and other board members to his own advantage

• The Board may be ineffectual and consist mainly of network of friends who are really not representing the shareholders’ interest

207


• The Board may be incompetent, meet on irregular basis and merely rubberstamp decisions of the CEO or a small group/clique of dominating board members

• The CEO and the CFO may conspire with other board members to distort the financial/operating reports for personal gains or for fear of a fall in share prices

208


• Employees may be incompetent or abuse the company systems and exploit loopholes for personal gains

• Significant new ventures and development projects involving huge outlays, and promising large returns might be undertaken without rigorously considering and addressing the underlying risks

209


• The Board and management might lay too much emphasis on instant success thereby putting pressure on employees to adopt unethical means to achieve/meet targets without considering the impact of a boomerang

210


• External audit routines may be designed to protect top management where the partner in charge of the audit has a basic allegiance to the company directors, particularly the CFO-who in reality determines – the auditor’s fees, – extra consulting work and – whether the audit firm retains the audit

engagement.

211


• Organisational structure may not separate ownership from management.

212


• The implication of the above listed matters is that the simple theoretical Principal-Agent model is– not realistic and can not guarantee the

achievement of corporate objectives – cannot ensure that the board of directors

act in the best interest of the shareholders.

213


• For the model to be practical, we need to build checks and balances into it to ensure desired performance and accountability.

• This is the essence of CG

214

1992 Cadbury ReportThis landmark report (which followed several high profile corporate Governance failures), described the link between CG and a country’s economic performance as follows:‘The country’s economy depends on the drive and efficiency of its companies. Thus the effectiveness with which the boards discharge their responsibilities determines Britain’s competitive position. They(the board) must be free to drive their companies forward but exercise that freedom within a framework of effective accountability. This is the essence of corporate governance’ (parag 1.1) ……….

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1992 Cadbury Report

• The report then went on to describe CG with this simple and now famous phrase:

‘Corporate governance is the system by which companies are directed and controlled’

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Cadbury’s definition:3 Key CG issues

1) Board is the main driver providing direction and control:

Direction – strategy setting and approval

Control – oversight of strategy implementation, oversight and effective monitoring of management; review of Risk Management and Internal Control systems

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Cadbury’s definition:3 Key CG issues- cont’d

2) Board must be effective and ensure achievement of set corporate objectives:Effectiveness –– Hire and Retain competent management, – maintain oversight through effective board

meeting and– communication between the board and

executive management; – periodic(financial) performance review

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Cadbury’s definition:3 Key CG issues- cont’d

3) Board must behave properly and hold themselves fully accountable to their shareholders; guided in their behaviour by two fundamental ethos of – Duty of Loyalty and – Duty of Care/Prudence/Diligence (accountability;

ethical standards; Tone at the top; transparency; integrity and reliability of financial statements; no conflict of interest; law abiding corporate citizen).

– Board must also hold Management accountable. 219

Multi-constituency definition of CG

• Cadbury’s definition and description of CG is narrow as it appears to lay too much emphasis on the interests of shareholders.

• An enhanced model of CG is one that takes care of interests of a wide range of people and groups affected by the operations of a company.

• These are the company’s shareholders, employees, customers, suppliers and other trade creditors, bankers/ financiers, competitors, the government and the local communities.

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Multi-constituency definition of CG

The IoD has published its views on stakeholder responsibilities on their website as follows:

…..’the key purpose of the board of directors is to seek to ensure the prosperity of the company by collectively directing the company’s affairs, while meeting the appropriate interests of its shareholders and relevant stakeholders and taking into account the laws, relevant regulations and commercial considerations’

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Drivers of CG Discussions

• Survey reports on corporate ethics and values• International corporate scandals and their

impact• Influence of activist shareholders and the

public• Emerging trends in economies• Globalization of the capital market• Impacts of ICT

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Models and codes of CG

• (UK)Cadbury report 1991; the London Stock Exchange Combined Code supported by the Turnbull and Smith guidance; Financial Reporting Council, FRC revised Combined Code

• OECD principles of CG• Basel Committee principles on Banking

Supervision

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Models and codes of CG

• USA(COSO Framework; Sarbanes-Oxley Act, SOX, supported by standards from the Public Companies Accounting Oversight Board, PCAOB)

• The IIA. Inc. principles of CG• South Africa(King Report, particularly the

updated King III 2009)

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Models and codes of CG• Nigeria: revised SEC Code for companies in

Nigeria; sub-committee of the Bankers Committee Code of Corporate Governance for Banks and Other Financial Institutions in Nigeria; Code of Corporate Governance for banks in Nigeria-post consolidation, April 2006; and

• The National Code of Corporate Governance FRCN.

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Highlights of the Bankers Committee Code of CG for banks in Nigeria

• The code was put together by the Committee on Corporate Governance, a sub-committee of the Bankers Committee.

• The code is essentially an adaptation of the UK Combined Code issued by the Financial Reporting Council(FRC), the UK’s independent regulator responsible for promoting high quality corporate governance and reporting to foster investment.

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The code broadly addressed fifteen(15) matters:

• Sec. 1-4 : Board structure and responsibility• Sec. 5-7 : Remuneration of Executive

Directors and NEDs• Sec. 8: Meetings and procedures at

meetings

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Highlights of the Bankers Committee Code of CG for banks in Nigeria-cont’d

• Sec.9 Board performance assessment• Sec.10 Risk management oversight

responsibility• Sec. 11 Accountability and financial disclosure

including disclosure on director-related service companies and non-performing director-related facilities

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• Sec. 12 Enhanced role of the Chief Compliance Officers

• Sec. 13 Relationship with shareholders• Sec. 14 Audit Committee and financial

reporting• Sec. 15 Limits on equity holdings by

governments and individuals

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Highlights of the Nigerian Code of CG

• The Nigerian Code of Corporate Governance, 2018 was officiallylaunched on January 15, 2019.

• The Code applies to public companies/entities and “all regulatedprivate companies being companies that file returns to anyregulatory authority other than the Federal Inland Revenue Service(FIRS) and the Corporate Affairs Commission (CAC)”.

• The Code does not distinguish between Private, Public, or PublicInterest Entities.

• All Sector specific Codes will continue to apply and where there isa conflict, the Code with the “stricter” requirement will prevail.

• A Principles based Code with a philosophy of “Apply & Explain”• Companies should report on the application of the Code in

Annual Reports for the period ending on or before January 1,2020 - Earlier reporting is encouraged.

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Overview of the Nigerian Code of CG• The Code is divided into seven parts and contains

twenty-eight (28) Corporate Governance principles:

16 principles relate to the Board of Directors 4 - Assurance 3 - Relationship with Shareholders 2 - Business Conduct and Ethics 1 - Sustainability 2 - Transparency

• Each principle outlines best practices forimplementation

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Putting Governance into practice: the 10 ‘principia’ of CG

Regardless of the details contained in any CG code, for it to be of any practical use, it must contain provisions to ensure the following matters which Andrew Chambers called the ten ‘principia’ of effective corporate governance:

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i. Stakeholder, especially the primary stakeholder(s), control of the business(‘’ shareholders’ activeness’’) :shareholders must perform their fiduciary duties responsibly by electing and approving the appointment of ‘fit and proper’ persons to the board, executive management, audit committees and the external auditors and by holding all the persons and organs accountable .

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Putting Governance into practice: the 10 ‘principia’ of CG-cont’d

ii A balanced board composition(competent and active Non Executive Directors, NEDs)

iii A strong and involved (but not obtrusive) board of directors providing strategic direction and monitoring its implementation

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Putting Governance into practice:the 10 ‘principia’ of CG

iv A strong, independent element on the board(Independent Director or Risk Advisor)

v Avoidance of excessive power at the top of the business by splitting the boardroom roles of Chairman and Chief Executive

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Putting Governance into practice: the 10 ‘principia’ of CG-cont’d

vi Effective monitoring and oversight of management by the Board

vii Review(company) performance and risk policy and ensure that appropriate systems of internal control are in place

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viii Maximum and reliable public reporting

ix Competence and commitment (organization-wide)

x A strong audit presence, including an audit committee consisting largely of NEDs.

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Salient components of CG

• The relationships between the shareholders and the company

• The exercise of corporate powers by the board and the AGM and executive meeting generally

• Directors Responsibilities for accountability and rectitude

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Salient components of CG

• Fair and equitable treatment of shareholders (including minority shareholders)

• Transparency and credible disclosure standards

• Product that take cognizance of consumer health

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Salient components of CG-cont’d

• Corporate citizenship with a social responsibility to the society (including sustainable environment)

• Director evaluation/Refreshing the board• The exercise of best judgement in the

policy and actions of management

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Role of Board of Directors

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– Accountability

– Leadership

– Strategy & Direction

– Define Corporate Ethical Culture - Tone at the Top

– Measure & Monitor Performance

– Risk Management

– Ensure True & Fair View of Financial Statements

– Succession Planning & Business Continuity

12 Boardroom skills & Traits

1) Leader ship skills – providing progressive leadership and oversight

2) Strategic advisera) identifying goalsb) identifying steps to overcome

obstacles to achieving goals.

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3) Collaborator /Consensus builder/ Team player

4) Industry expert.5) Networking skills for information about

(External Environment) news and developments in the external environment

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6)Internal affairs (collecting and monitoring information about the state of the organization)

7)Interest in various stakeholders8) Decision – making and negotiation skills9) Role flexibility

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10) Systems thinking and Good judgement11) Knowledge and understanding of your

responsibilities on the board; independence of mind and independence of relationship

12) Business sense(KoB) – understanding of what is required for a business to be successful

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Other Soft Skills

• Active listening• Communication skills• Global perspective• Candor/Grounded in

business, international economy

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Other Soft Skills

• Dealing with Realities

• Visibilities/ Understanding who are the drivers of the Agenda

• Know and interact with management

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Other Soft Skills

• Technology savvy• Using outside Resources• Political effectiveness vs correctness

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Be Effective

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