The Star Global Malaysians Forum - Posted: 09 March 2007 at 4:30pm

Back to economics basics - The Superbull. Take into account :

a) Consumer Price Index & Inflation,
b) The volatility global crude oil price (may turn the Superbull and to a Deep Bear),
c) Bluechips - carefully/systematically plan anything to do with abroad investment,(also never forget the RM)
d) Anyone know if there are still 'safe stocks' (bear-proof)? If so, will the risk increase or decrease in owning such stocks in large numbers?
e) Closely monitor NASDAQ/DOW - gaining or not gaining? (weight)
f) WAR-WAR-WAR...no more WAR!
g) Always be reminded of the 1990s
h) Politics
i) Buying Power, Selling Pressure and Profit Taking

The superbull is real but the current volatile correction should now serve as a reminder for everyone to 'review investment plans'

Where else can I find my superbull?

Yesterday, someone told me - 'Commodities'? I said - "Huh? What investment or economics books have you been reading? "

Reply : "Yes, it's a bit conventional but it may hold the answer. Up to you Nik to take my word for granted or otherwise - remember, you brought up the subjects of improving internal mechanisms of any business entity - e.g. supply and demand, quality & productivity, find better ways of doing/improving marketing/branding and sales, improved governance, tips/rumours/data/information screening & analysis?

I didn't give any response but asked him again..."Any other 'superbullish' tips? He stood up, called the waiter, paid the bill, shake my hands and said "Mutual Funds"

and guess what, momentarily before he left, he said some 'ouching' phrases to me "And Nik, cut the craps about the 'psychological sentiment' - I know you mean well, You're an analyst - not a fortune teller" (and left with that 'unforgettable cynical smile')

Gosh...I was stunned...(the guy has been reading GMN)

Ok..my advise - it's time for us to correct our past inaccuracy, prepare a better plan when buying or selling - remember, if the superbull come charging in later (which I'm counting on it - I can almost hear the 'snorts'), all of us would be lucky...trust me!

nikzafri wrote:

I'm not really worried about what this news is telling us - but I'm 'a bit' concerned on the USD performance - read the news about USD currency - not conventional economics. Why am I worried? Read my original post here. If something is not done on USD current performance, then other currencies will be effected, when others are effected, then the pricing of everything will be effected, when pricing is effected, then economy will somehow be effected and of course all of us will feel it. Hedging can be one of the cause and the mortgage crisis may also become another - when lenders want to play too safe and not taking any risk.

nikzafri wrote:

Ask a forex trader (those who trade using USD) or a banker (esp. international banks) or local company linked (investment wise) to the US, they'll tell you how this subprime mortgage crisis effects the stock markets all over the world! It would start with the USD value getting hurt due to the too much dependance on subprime sector and housing market. The USD will start declining further as such as the lenders starting to charge higher and more borrowers couldn't afford to pay the loans and risk facing legal charges even the lenders promised refinancing (be careful, you could end up in more trouble if you refinance esp. Predatory Lenders)

nikzafri wrote:

Yes, it doesn't (the relationship between Malaysia stock market performance and the US economy) - because stock prices are a determinant of several factors operating on a given day - it's still about supply and demand. Thus it is technically wrong to assume it's due to one factor that is - concerns over US subprime market. So, we're quite clear that the market current underperformance has; in principle; nothing to do directly with sub-prime mortgate crisis in the United States. But why it is still effected? Why the concerns? Coincidence? No..it can't be as the WORLD stock markets are encountering the same thing.

It gets better....

The Star Business - 10/12/07 - Monday

US dollar woes far from over

IN PERSPECTIVE
By BALJEET GREWAL

CONSIDER this – 2000 years ago, Rome was running a trade shortfall equivalent to 3% of its total economy, one of the many factors that led to the empire’s eventual downfall.

Fifty years ago, Brazil had a massive trade deficit, which were critical to its decline – the currency was battered over and over again.

Eight years ago, the tiger economies of Asia were plunged into a currency crisis, due to big domestic and over-reliance on foreign capital.

Today, international bodies assert that if a country’s trade deficit exceeds 4.5% of its gross deficit product (GDP), it’s a sign of real and present economic danger.

And yet the US economy continues to flaunt history and economics. At 6.4% of GDP (US$58.9bil), US trade deficits are perilous and significantly exceed those of Rome, Brazil or any Asian country one decade ago.

With the recent decline of the US dollar, there are good reasons to expect its slide to continue. Weak economic numbers triggered the fall of the greenback against slower housing starts, sluggish durable goods orders and lethargic consumer confidence – all point to a correction in the economy.

Compounding this is the US’ current account and budget deficit (3.5% of GDP) as well as the narrowing interest rate differential between the US and regional Asian countries. The impact of the subprime market and the widespread repercussions on consumer and corporate consumption exacerbates the dollar woes. All these factors combined offer the possibility of a prolonged economic malaise which continues to weigh down the dollar.

On the contrary, improved economic fundamentals in Asia (reduced external debt and budget deficits, higher international reserves, potential sovereign ratings upgrades and sizeable portfolio capital flows into Asia) have further supported regional currencies.

Further appreciation is on the cards, driven by dwindling US macro dynamics and slower growth expectations. Year-to-date 2006, the Malaysian ringgit has appreciated 5.52% against the greenback, the Singapore dollar at 5.97% and the Thai baht at 16.96%. More telling will be a likely renminbi appreciation fuelling regional currencies given China’s imminent economic reforms and move towards a flexible mechanism. Increasingly, the fortunes of economies in the region are being lifted, driven in many cases by demand from China.

While a weak dollar has seen currencies rally against a weary US economy, a significant correction in US macro data and serious negatives from a bourgeoning current account deficit may flip dynamics if left unchecked. The largest threat globally remains an unruly adjustment of the US dollar which could send regional markets into a downward spiral premised on a sell off in US dollar assets. The tumbling dollar will not only halt export growth but also see a flight away from capital markets. The US is still the single largest trading partner of most East Asian economies, and the Achilles heel of emerging Asia.

To offset this, East Asian countries will need to ensure that their currencies appreciate in unison and do not fluctuate sharply in value relative to one another given the weightage of trade. East Asian economies can withstand about 20% decline in the trade-weighted value of the dollar provided their currencies appreciate together – consensus show that the US dollar will need to decline by 30% in trade weightage terms for trade deficit to look palatable.

Collectively, Asian central banks hold about US$3.2 trillion in foreign exchange reserves, most of it in dollars, and their large purchases of US dollar leading to 2006 have played a crucial role in curtailing the dollar's decline. If the US dollar is certain to fall further, central banks will sell dollar reserves or switch into other reserve currencies, which will exacerbate the dollar’s fall.

On the contrary, if Asian economies try to prevent their currencies from rising against the dollar to preserve export competitiveness, then the result could be broadbased weakness in Asian currencies and a rapid accumulation of currency reserves. Delicate balancing of foreign exchange reserves in this instance is crucial, especially given the trade impact; hence a communal appreciation will thwart any potential regional imbalance.

So, does a falling US dollar spell disaster for Asia? Not necessarily. Asian economies today are characterised by current account surpluses, large foreign exchange reserves and high rates of domestic savings. Equity markets across the region have been breaching all-time highs, reflecting the underlying strength of economies across the region and the perception that Asian stocks represent the best growth prospects at reasonable risk premium.

Thanks in part to the de-linking of Asia's capital markets from the US (more visible in the bond market), and a greater reliance in intra-regional trade (particularly with China), Asian markets seem well-placed to withstand the slowdown in the US that is expected in 2007.

These improved economic fundamentals will serve the region well over the next few years as the global economy slows and investors become more risk-averse. Nevertheless, the dip in Asian capital markets and a slide in Asian currencies against the US dollar in August this year, from the fallout of the subprime crisis serve as a reminder that the region is not immune to a change in global investor sentiment.

Meanwhile, positive overtures from an appreciating ringgit will continue to buoy domestic markets. The ringgit surged to its highest level post de-pegging, closing at 3.3177 (Nov 9) to the US dollar in line with strengthening regional currencies. The broadbased impact from a stronger ringgit is positive in general; especially in sectors which derive ringgit revenue with USD denominated costs.

Note: The author is group chief economist at Kuwait Finance House, Malaysia (KFH). KFH is one of the largest Islamic banks in the world and the first Islamic Bank with an Economic & Investment Research team.

----------------------

Since the author said "Not necessarily", this may also serves to mean as 'depends'.

Here are my personal hypotheses :

Despite it is understandable that trade surpluses could be the solution for future economic growth i.e. by means of amending policies not to be overdependent on foreign trade (only recently done), it may only work if country like US decide to run the corresponding trade deficit.

I may be wrong, but what if US decides to reduce the deficit?

Will it not create some 'not so nice' repercussions?

I'm not really being devil advocate here, but the gap of surpluses and deficits are not getting any smaller as we speak and it is foreseeable that the next issue will be misalignments in USD adjustment and definitely some 'not so nice' impact on global growth.

Of course, I'm neither suggesting that we should be adjusting exchange rates in Asian surplus counter nor pushing down demand and growth in deficit countries but rather I was kinda HOPING that Asian should assume a much bigger function in expanding their domestic demands and head towards becoming the catalyst to global growth (as soon as possible)

I am also yet to see two things : (anyone, please correct, I might have missed it)

a) EU coming in although much have been said by them and

b) adjustments on worldwide macroeconomic policies

When we deal with global financial management, we need a state-of-the art multilateral approaches to ensure a more predictable trading environment.

In global economy, every nation should not be left behind (or be put in the dark wondering what would be the future or what's next?) and they all deserve a more fair/equal treatment. IMF and UNCTAD should play more transparent roles rather than be seen as 'being used' to determine monetary policies and exchange rates.

The whole world is on the way towards interdependency, nobody should be ignored. Asia should no longer limit itself by merely quoting China as a benchmark of Asian or world growth, but other Asian nations as well.

My special thanks to Tuan Haji Ahmad bin Che Din, Taman Merdeka, Selama, Perak Darul Ridzuan, Malaysia

The 14 Golden Rules for Malaysian Business
(Version 02-May, 2006) - By : Nik Zafri (V1-2002)

(KNOWLEDGABLE) - Possess sufficient knowledge, skills/competencies, abilities, experience, exposures and qualifications. All these criterions must be geared towards developing result-oriented system.

(HELPING HAND) - A lending hand to interested parties - associates, partners, staff and general public (including competitors) related to the business. This include sharing new business methodologies through training/ briefing/ conversation/ meeting/ coaching etc. etc. with a perspective of building a better business network in the long run. Becoming responsible corporate citizens by helping the needies (social/welfare activities) and susceptible to the surroundings (including general public)

(CORRUPTION-FREE) - Free from graft of any form. Bribery destroy businesses in a short time and it is also against religious beliefs and the laws.

(EFFECTIVE MARKETING) - Approach the market ethically upon seeing prospects. Diligence and hardworking without giving up easily. Never say 'NO' to customers requests or enquiries. Form up smart partnership(s) or JV(s) with more experienced parties if required.

(NO WASTAGES) - Do not waste time/money on prospective clients/sub-contractors/suppliers at entertainment centres/nightspots or going on tour - vacation in order to win certain tenders (s) or as one of the 'implied criterons' for tender(s) award. Wastages should also be avoided in terms of quality costs (scrap, duplicate activities, wastages etc. etc.) and where practicable, recycle. Apart from the above, meetings/discussions which are time- consuming and unproductive must be minimised including to experiment or test-run a certain 'blue print' or system which is still theoritical. Finally, negative habits such as loafing, truancy, too much talking, spending too long of a time at canteens/cafeteria/stalls should be avoided.

(VISIONARY) - having long term strategic plans in the context of mission, objective and goal. All planning should consider measurement, implementation, current financial status, human resources, technology and business suitability. Expecting potential problems proactively may prevent future pitfalls.

(EXCELLENCE) - excellence and having own business branding without 'xeroxing' or too much influenced by others/competitors. Being proud of own business (even how small or how big) without inferiority.

(PRACTICAL) - Putting all effort towards achieving the objectives and goals being set-up and not simply developing hypothesis or lip-service. Having business-'ownership' feeling, leadership and ability to work independently. These include the process of critical decision making under any circumstances. Responsible, committed and accountable on duties being executed.

(TRANSPARENCY) - adopting transparency in matters/current development pertaining business that need to be made known to interested parties (client, stakeholders, general public, consumers etc. etc.)

(SUSCEPTIBLE) - caring and susceptible towards the volatile changes in the requirements (specification/trend) of interested parties.

(TENDENCY TOWARDS CHANGE) - Readiness to embrace change or upgrade the quality of services and products according to the latest trends regarding new knowledge, technology and method. These include willingness to allocate additional investment(s) aimed towards continual improvement and long term returns.

(LISTENING TO OPINIONS AND CONSTRUCTIVE CRITICISM) - becoming a good listener to views and (constructive) criticisms from interested parties as they may become catalyst to business growth.

(NOT DEPENDING ON RUMOURS) - not depending solely on rumours in the course of running business. This include unverified/unreliable tips of market shares/stocks (known to fluctuate)

(QUALITY) - OVERALL - implementation of policy, procedures, standards/codes of practice, process, product/services, resources - technology, training, development of management/staff/workers, customers, teamwork, welfare, occupational health and safety/environmental management. Instilling discipline (or self-instilled disciplines) in all aspects including subordination

THE BASICS OF BUSINESS - By Brian Tracy - Entrepreneur.com

Business is an art as well as a science. It's a matter of practical experience, judgment, foresight and luck. To be successful in business, you must master the basics of business success.

Fortunately, all business skills are learnable. You can learn anything you need to learn, to achieve any goal you can set for yourself. There are no limits--except the limits you place on your own imagination.

There are three major reasons why businesses fail: lack of money, lack of knowledge and lack of support. By mastering the basics of business success, you'll gain the knowledge necessary to acquire the support and money you need for your business.

So just what are the essentials of business success? There are seven key areas of activity that determine whether your business will live or die:

1. Marketing. Your ability to determine and sell the right product to the right customer at the right time

2. Finance. Your ability to acquire the money you need, and account for the money you receive

3. Production. Your ability to produce products and services at a high enough level of quality and consistency over time

4. Distribution. Your ability to get your product or service to the market in a timely and economic fashion

5. Research and development. Your ability to continually innovate and produce new products, services, processes and responses to your competition

6. Regulation. Your ability to deal with the requirements of government legislation at all levels

7. Labor. Your ability to find the people you need, deal with unions, establish personnel policies, training and organizational development

And from this list, comes the very specific, identifiable reasons for business success:

Having a product or service that's well suited to the needs and requirements of the current market

Developing a complete business plan before commencing business operations

Conducting a complete market analysis before producing or offering the product or service

Thoroughly developing advertising, promotional and sales programs
Establishing tight financial controls, good budgeting practices, accurate bookkeeping and accounting methods, all backed by an attitude of frugality

Ensuring that there's a high degree of competence, capability and integrity on the part of key staff members

Having good internal efficiency, time management, clear job descriptions, accompanied by clear and measurable output and responsibilities

Developing effective communication among the staff and an open-door policy for managers, especially the business's owner

Generating strong momentum in the sales department and placing a continued emphasis on marketing your product or service

Making concern for the customer a top priority at all times

Putting determination, persistence and patience at the top of the list on the part of the business owners

And now that you know the seven essentials of business success and the identifiable factors involved in helping your company succeed, let me share the top reasons for business failure. Thousands of companies were studied to determine the reasons businesses fail. Here they are, in order of their importance:

Lack of direction. Business owners often fail to establish clear goals and create plans to achieve those goals, especially before starting out, when they fail to develop a complete business plan before launching their company.

Impatience. This occurs when business owners try to accomplish too much too soon, or expect to get results far faster than is truly possible. A good rule to remember is that everything costs twice as much and takes three times as long as expected.

Greed. When entrepreneurs try to charge too much to make a lot of money in a short period of time, failure isn't far behind.

Taking action without thinking it through first. An entrepreneur acts impetuously and makes costly mistakes that eventually cause the business to fail.

Poor cost control. An entrepreneur spends too much, especially in the early stages, and spends all their startup capital money before achieving profitability.

Poor product quality. This makes it difficult to sell and difficult to get repeat business.

Insufficient working capital. An entrepreneur expects--and requires--immediate, positive cash flow that doesn't occur, leading to the failure of the business.

Bad or nonexistent budgeting. An entrepreneur fails to develop written budgets for operations that include all possible expenses.

Inadequate financial records. An entrepreneur fails to set up a bookkeeping or accounting system from the beginning.

Loss of momentum in the sales department. This leads to a decline in cash flow and the eventual collapse of the enterprise.

Failure to anticipate market trends. An entrepreneur doesn't recognize changes in demand, customer preferences or the economic situation.

Lack of managerial ability or experience. An entrepreneur doesn't know or understand the important skills it takes to run a business.

Indecisiveness. An entrepreneur is unable to make key decisions in the face of difficulties, or decisions are delayed or improperly made because of concern for the opinions or feelings of other people.

Bad human relations. Personal problems and conflict with staff, suppliers, creditors and customers can easily lead to business failure.

Diffusion of effort. An entrepreneur tries to do too many things, thus failing to set priorities and focus on high-value tasks.

Business success isn't a mystery waiting to be solved. It's an attainable goal, if you simply avoid the reasons for business failure and continually focus on improving the areas that are responsible for business success.

Brian Tracy is the "Success Secrets" coach at Entrepreneur.com and is one of America's leading authorities on entrepreneurial development. He's produced more than 300 audio and video learning programs covering the entire spectrum of human and corporate performance.

Material copyright © by Entrepreneur.com, Inc. All rights reserved.

------------------------------
The Star Global Malaysians Forum - Response from Almerica - Posted: 11 August 2006 at 1:36am

Great stuffs nik!

Allow me to add. The main problem in today's businesses is that many top corporate owners still find it tough to delegate and trust even their fully competent and qualified generals to make a call. This slows down decision making process and one major fact today is that business is very much based on the speed of making things happen.

My company had the privilege of being appointed as an ad-hoc project manager and coordinator, handling everything from protocol communications to organising a huge MNC's official opening of its plant in Pg with our CM being the honorary guest. (see the link below). We were given just about 3 weeks from the word go to make it happen and the rate of their approval for our proposals were simply superb.

http://www.thestar.com.my/news/story.asp?file=/2006/8/10/north/15077905&sec=North

They are currently the fastest growing semicon company (as listed in Forbes). Our CM, Tan Sri Koh and everybody present were astounded when the CEO of the corporation mentioned that it was his first trip to Pg! He reiterated that he based his actions on the advices of his team of leaders here in Malaysia & S'pore. He went ahead to invest 100million here upon their advice and only made his trip here to witness the official opening of the plant. And the greatest achievement is that they built the plant and started its operations (with over 200 staffs) all within 3 months making them a record breaker! You know what their tagline is? Moving Forward Faster.

And here we sometimes see big local companies that has so much red tape that even a decision to approve a Rm 1000 purchase is delayed due to the green light required by the MD. Hmmm, we have always teased at the "kiasu-ness" of the Singaporeans but I wonder if we ever look at our own "kiasi-ness", hehe.
---------------------------------
Nik Zafri's Response - Posted: 11 August 2006 at 1:36pm

Almerica wrote:

Great stuffs nik! Allow me to add. The main problem in today's businesses is that many top corporate owners still find it tough to delegate and trust even their fully competent and qualified generals to make a call. This slows down decision making process and one major fact today is that business is very much based on the speed of making things happen.

This is the part that I will never understand. Despite we have all the sophisticated and up-to-date or 'state of the art' tools and technologies, yet, we are sometimes; as if; still 'too conventional and simplistic' in managing an organization. Correct me if I'm wrong...has this got something to do with 'fear of change'? (among the senior management level?)

Almerica wrote:

My company had the privilege of being appointed as an ad-hoc project manager and coordinator, handling everything from protocol communications to organising a huge MNC's official opening of its plant in Pg with our CM being the honorary guest. (see the link below). We were given just about 3 weeks from the word go to make it happen and the rate of their approval for our proposals were simply superb. http://www.thestar.com.my/news/story.asp?file=/2006/8/10/north/15077905&sec=North They are currently the fastest growing semicon company (as listed in Forbes). Our CM, Tan Sri Koh and everybody present were astounded when the CEO of the corporation mentioned that it was his first trip to Pg! He reiterated that he based his actions on the advices of his team of leaders here in Malaysia & S'pore. He went ahead to invest 100million here upon their advice and only made his trip here to witness the official opening of the plant. And the greatest achievement is that they built the plant and started its operations (with over 200 staffs) all within 3 months making them a record breaker! You know what their tagline is? Moving Forward Faster.

I'm impressed!! Here's what I think...your company has what I call the 'one-game-plan'...not 'multiple game plan'...meaning - the majority (I wouldn't say all) of your company's population is genuinely working according to the Company's vision, mission, objectives and goals. The effectiveness of your company's operation could may be well attributed to the effectiveness of leadership, resource management, information dissemination, A & P and good human resources/traning/development. Of course, you may still find 'hiccups' here and it's all about continual improvement. Only - I'm not sure about one thing..if you're willing to share with us here....what's your company's branding and most importantly, how did your company make everyone understand that they are carrying a big responsibility of 'enhancing the corporate image'?

Almerica wrote:

And here we sometimes see big local companies that has so much red tape that even a decision to approve a Rm 1000 purchase is delayed due to the green light required by the MD. Hmmm, we have always teased at the "kiasu-ness" of the Singaporeans but I wonder if we ever look at our own "kiasi-ness", hehe.

Memory serves, here's something that we've discussed a long time ago...

http://www.globalmalaysians.com/forum/forum_posts.asp?TID=465&PN=2

(perhaps you should 'reactivate' this topic)
---------------------------------
Response from Almerica - Posted: 12 August 2006 at 12:22am

It's largely due to inculcating the self belief in themselves. Here's my method of doing it on a step by step basis, from a new staff's day of entry into our fold (though a very small one that is, at the moment):

- Have at least an hour or two "get to know better session" with the person
- Exchange some stories about one another and find out their likes and dislikes
- Lend support to the causes they believe in
- Find out into more detail what they believe their strengths are
- Brief them about what the company's strengths and weaknesses are, and also where the company is heading
- Explore with them (we do not dictate) on how their strengths can be used to tie in with the company's plans and then assign that part of the responsibility of the workscope to them
- Work out a gameplan with them based on what they believe they can do which runs in line with what you want them to do
- Tell them it's ok to make mistakes (to eradicate the fear of making a mistake which could prevent them from exposing their true potentials) as long as it's not about anything illegal or malicious or involves self greed.
- Start a buddy system for them for the next few weeks
- Keep them involved in group conversations (to eradicate shyness as well as to make them feel at home)

and the list goes on......

Those are the compulsory stuffs we do cos I feel that there is no way we can know all about each other from just interviews no matter how many times we have done it.

Once the self belief is there, without the lingering fear of making mistakes, the passion on the job grows within them. And with passion comes commitment and the sincere desire to do it well, do it right and do it fast. And the ultimate outcome would be getting the results that we all need. We tell them that rewards will come on its own when we do what we have to but when one focuses on the rewards, one may do the wrong thing to get it because the priority becomes clouded, and they may end up getting no reward at all because of that.

Above all, be fair, compliment when it is due, point out effectively when they are wrong. It is not that we are being soft with them. Respect them and they will respect you and the company. Be transparent, allow your door to be always opened to anyone.

If you dont spend some time for your people, they won't spend much time for you or your company either. So patience and sincerity has to be shown on the part of the leader first. Good staffs don't need you, you need good staffs. They are the best form of investment any company can ever have. For me, my first assessment which forms my decision of any potential person is the heart. If its clean, pure and good, then every other thing can be developed from there cos that to me, is the foundation of a person's character.

THE BASICS OF BUSINESS - By Brian Tracy - Entrepreneur.com

Business is an art as well as a science. It's a matter of practical experience, judgment, foresight and luck. To be successful in business, you must master the basics of business success.

Fortunately, all business skills are learnable. You can learn anything you need to learn, to achieve any goal you can set for yourself. There are no limits--except the limits you place on your own imagination.

There are three major reasons why businesses fail: lack of money, lack of knowledge and lack of support. By mastering the basics of business success, you'll gain the knowledge necessary to acquire the support and money you need for your business.

So just what are the essentials of business success? There are seven key areas of activity that determine whether your business will live or die:

1. Marketing. Your ability to determine and sell the right product to the right customer at the right time

2. Finance. Your ability to acquire the money you need, and account for the money you receive

3. Production. Your ability to produce products and services at a high enough level of quality and consistency over time

4. Distribution. Your ability to get your product or service to the market in a timely and economic fashion

5. Research and development. Your ability to continually innovate and produce new products, services, processes and responses to your competition

6. Regulation. Your ability to deal with the requirements of government legislation at all levels

7. Labor. Your ability to find the people you need, deal with unions, establish personnel policies, training and organizational development

And from this list, comes the very specific, identifiable reasons for business success:

Having a product or service that's well suited to the needs and requirements of the current market

Developing a complete business plan before commencing business operations

Conducting a complete market analysis before producing or offering the product or service

Thoroughly developing advertising, promotional and sales programs
Establishing tight financial controls, good budgeting practices, accurate bookkeeping and accounting methods, all backed by an attitude of frugality

Ensuring that there's a high degree of competence, capability and integrity on the part of key staff members

Having good internal efficiency, time management, clear job descriptions, accompanied by clear and measurable output and responsibilities

Developing effective communication among the staff and an open-door policy for managers, especially the business's owner

Generating strong momentum in the sales department and placing a continued emphasis on marketing your product or service

Making concern for the customer a top priority at all times

Putting determination, persistence and patience at the top of the list on the part of the business owners

And now that you know the seven essentials of business success and the identifiable factors involved in helping your company succeed, let me share the top reasons for business failure. Thousands of companies were studied to determine the reasons businesses fail. Here they are, in order of their importance:

Lack of direction. Business owners often fail to establish clear goals and create plans to achieve those goals, especially before starting out, when they fail to develop a complete business plan before launching their company.

Impatience. This occurs when business owners try to accomplish too much too soon, or expect to get results far faster than is truly possible. A good rule to remember is that everything costs twice as much and takes three times as long as expected.

Greed. When entrepreneurs try to charge too much to make a lot of money in a short period of time, failure isn't far behind.

Taking action without thinking it through first. An entrepreneur acts impetuously and makes costly mistakes that eventually cause the business to fail.

Poor cost control. An entrepreneur spends too much, especially in the early stages, and spends all their startup capital money before achieving profitability.

Poor product quality. This makes it difficult to sell and difficult to get repeat business.

Insufficient working capital. An entrepreneur expects--and requires--immediate, positive cash flow that doesn't occur, leading to the failure of the business.

Bad or nonexistent budgeting. An entrepreneur fails to develop written budgets for operations that include all possible expenses.

Inadequate financial records. An entrepreneur fails to set up a bookkeeping or accounting system from the beginning.

Loss of momentum in the sales department. This leads to a decline in cash flow and the eventual collapse of the enterprise.

Failure to anticipate market trends. An entrepreneur doesn't recognize changes in demand, customer preferences or the economic situation.

Lack of managerial ability or experience. An entrepreneur doesn't know or understand the important skills it takes to run a business.

Indecisiveness. An entrepreneur is unable to make key decisions in the face of difficulties, or decisions are delayed or improperly made because of concern for the opinions or feelings of other people.

Bad human relations. Personal problems and conflict with staff, suppliers, creditors and customers can easily lead to business failure.

Diffusion of effort. An entrepreneur tries to do too many things, thus failing to set priorities and focus on high-value tasks.

Business success isn't a mystery waiting to be solved. It's an attainable goal, if you simply avoid the reasons for business failure and continually focus on improving the areas that are responsible for business success.

Brian Tracy is the "Success Secrets" coach at Entrepreneur.com and is one of America's leading authorities on entrepreneurial development. He's produced more than 300 audio and video learning programs covering the entire spectrum of human and corporate performance.

Material copyright © by Entrepreneur.com, Inc. All rights reserved.

------------------------------
The Star Global Malaysians Forum - Response from Almerica - Posted: 11 August 2006 at 1:36am

Great stuffs nik!

Allow me to add. The main problem in today's businesses is that many top corporate owners still find it tough to delegate and trust even their fully competent and qualified generals to make a call. This slows down decision making process and one major fact today is that business is very much based on the speed of making things happen.

My company had the privilege of being appointed as an ad-hoc project manager and coordinator, handling everything from protocol communications to organising a huge MNC's official opening of its plant in Pg with our CM being the honorary guest. (see the link below). We were given just about 3 weeks from the word go to make it happen and the rate of their approval for our proposals were simply superb.

http://www.thestar.com.my/news/story.asp?file=/2006/8/10/north/15077905&sec=North

They are currently the fastest growing semicon company (as listed in Forbes). Our CM, Tan Sri Koh and everybody present were astounded when the CEO of the corporation mentioned that it was his first trip to Pg! He reiterated that he based his actions on the advices of his team of leaders here in Malaysia & S'pore. He went ahead to invest 100million here upon their advice and only made his trip here to witness the official opening of the plant. And the greatest achievement is that they built the plant and started its operations (with over 200 staffs) all within 3 months making them a record breaker! You know what their tagline is? Moving Forward Faster.

And here we sometimes see big local companies that has so much red tape that even a decision to approve a Rm 1000 purchase is delayed due to the green light required by the MD. Hmmm, we have always teased at the "kiasu-ness" of the Singaporeans but I wonder if we ever look at our own "kiasi-ness", hehe.
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Nik Zafri's Response - Posted: 11 August 2006 at 1:36pm

Almerica wrote:

Great stuffs nik! Allow me to add. The main problem in today's businesses is that many top corporate owners still find it tough to delegate and trust even their fully competent and qualified generals to make a call. This slows down decision making process and one major fact today is that business is very much based on the speed of making things happen.

This is the part that I will never understand. Despite we have all the sophisticated and up-to-date or 'state of the art' tools and technologies, yet, we are sometimes; as if; still 'too conventional and simplistic' in managing an organization. Correct me if I'm wrong...has this got something to do with 'fear of change'? (among the senior management level?)

Almerica wrote:

My company had the privilege of being appointed as an ad-hoc project manager and coordinator, handling everything from protocol communications to organising a huge MNC's official opening of its plant in Pg with our CM being the honorary guest. (see the link below). We were given just about 3 weeks from the word go to make it happen and the rate of their approval for our proposals were simply superb. http://www.thestar.com.my/news/story.asp?file=/2006/8/10/north/15077905&sec=North They are currently the fastest growing semicon company (as listed in Forbes). Our CM, Tan Sri Koh and everybody present were astounded when the CEO of the corporation mentioned that it was his first trip to Pg! He reiterated that he based his actions on the advices of his team of leaders here in Malaysia & S'pore. He went ahead to invest 100million here upon their advice and only made his trip here to witness the official opening of the plant. And the greatest achievement is that they built the plant and started its operations (with over 200 staffs) all within 3 months making them a record breaker! You know what their tagline is? Moving Forward Faster.

I'm impressed!! Here's what I think...your company has what I call the 'one-game-plan'...not 'multiple game plan'...meaning - the majority (I wouldn't say all) of your company's population is genuinely working according to the Company's vision, mission, objectives and goals. The effectiveness of your company's operation could may be well attributed to the effectiveness of leadership, resource management, information dissemination, A & P and good human resources/traning/development. Of course, you may still find 'hiccups' here and it's all about continual improvement. Only - I'm not sure about one thing..if you're willing to share with us here....what's your company's branding and most importantly, how did your company make everyone understand that they are carrying a big responsibility of 'enhancing the corporate image'?

Almerica wrote:

And here we sometimes see big local companies that has so much red tape that even a decision to approve a Rm 1000 purchase is delayed due to the green light required by the MD. Hmmm, we have always teased at the "kiasu-ness" of the Singaporeans but I wonder if we ever look at our own "kiasi-ness", hehe.

Memory serves, here's something that we've discussed a long time ago...

http://www.globalmalaysians.com/forum/forum_posts.asp?TID=465&PN=2

(perhaps you should 'reactivate' this topic)
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Response from Almerica - Posted: 12 August 2006 at 12:22am

It's largely due to inculcating the self belief in themselves. Here's my method of doing it on a step by step basis, from a new staff's day of entry into our fold (though a very small one that is, at the moment):

- Have at least an hour or two "get to know better session" with the person
- Exchange some stories about one another and find out their likes and dislikes
- Lend support to the causes they believe in
- Find out into more detail what they believe their strengths are
- Brief them about what the company's strengths and weaknesses are, and also where the company is heading
- Explore with them (we do not dictate) on how their strengths can be used to tie in with the company's plans and then assign that part of the responsibility of the workscope to them
- Work out a gameplan with them based on what they believe they can do which runs in line with what you want them to do
- Tell them it's ok to make mistakes (to eradicate the fear of making a mistake which could prevent them from exposing their true potentials) as long as it's not about anything illegal or malicious or involves self greed.
- Start a buddy system for them for the next few weeks
- Keep them involved in group conversations (to eradicate shyness as well as to make them feel at home)

and the list goes on......

Those are the compulsory stuffs we do cos I feel that there is no way we can know all about each other from just interviews no matter how many times we have done it.

Once the self belief is there, without the lingering fear of making mistakes, the passion on the job grows within them. And with passion comes commitment and the sincere desire to do it well, do it right and do it fast. And the ultimate outcome would be getting the results that we all need. We tell them that rewards will come on its own when we do what we have to but when one focuses on the rewards, one may do the wrong thing to get it because the priority becomes clouded, and they may end up getting no reward at all because of that.

Above all, be fair, compliment when it is due, point out effectively when they are wrong. It is not that we are being soft with them. Respect them and they will respect you and the company. Be transparent, allow your door to be always opened to anyone.

If you dont spend some time for your people, they won't spend much time for you or your company either. So patience and sincerity has to be shown on the part of the leader first. Good staffs don't need you, you need good staffs. They are the best form of investment any company can ever have. For me, my first assessment which forms my decision of any potential person is the heart. If its clean, pure and good, then every other thing can be developed from there cos that to me, is the foundation of a person's character.

Permit me to share a brief experience ('Client ABC') There was one time when all the senior executive staff including managers have been asked to propose on how to improve (value-add) the intranet usage as the company has been using intranet for years but do not know for what.

Then come this 'techie guy' who started to explain to the 'big boss' using all the ICT technical jargons on how to build an intranet portal. The boss was like : "Ok..yeah..yeah...so what's your point" and that guy kept 'blabbering' with all the 'alien colloquials'. He claimed that all the terminologies he's using is actually 'data' to justify his proposal. Actually he misunderstood what the boss meant.

Then came my turn to comment as a consultant. The boss asked me of where should be the starting point to have a real intranet portal respectively for every department.

I simply replied - in order to avoid 'reinventing the wheel' and since their company has been certified with ISO 9000, they can start by looking into their own procedures, manuals, plans, for process flow of each operation and ensure that these processes are displayed on the intranet portal (making use of the ready-available resources..not creating a new thing) Such information must be accessible to all according to their level of users (superusers, read only and 'blah-blah-blah') Then come out with FAQ for each set of processes. They can also go further by releasing some of the information on the net to gain confidence from investors as they are one of the public listed company.

One of many advantages about having these processes online is that when the 'senior officers' are not in the office perhaps due to some site or outstation assignments, the receptionist can do a quick response to queries based on the standard FAQ that is derived from the processes depending on what the queries are all about. It's a cool telemarketing for the receptionist as well (and good commission too)- cos' sometimes, the queries may come from prospective clients.

Did you know that this technique has been used successfully in Fortune 500 IT companies in the event of troubleshooting queries from the customer. You will notice that the 'technical' people (receptionist actually assuming the jobs of 'desk help' or 'customer service' )- will say "What's your problem sir, how may I help you?" Then you will notice momentary typing sound - looking for the answer in the FAQ and not long after that - confidently replied to you based on the FAQ or if they can't find the right solution, they will simply say "We'll get our people to attend to your problem" or "I'll pass the line to the right officer...hold on please"

The boss looked at this techie guy and said :

"Why can't you talk like him?"

Then this techie guy gazed at me with 'that kind of look' and started to ask me on how to go about - technically speaking. (I think you all know why..he's trying to 'get' me)

Before I could answer, the boss quickly answered on my behalf saying :

"The technical part is for YOU to worry about."
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Almerica's response - Posted: 29 August 2006 at 11:50pm and Nik Zafri's resonse - Posted: 30 August 2006 at 7:15pm

That's what we really all hate. Instead of being a man, acknowledge his weakness and learn from this encounter, such "vindictive" response is what reveals his "train of thoughts" and type of personality. These are the kinds that are ones who wouldn't mind sabotaging a project just to make themselves look good. May be just a small matter, but the way he responded shows the kind of person he is, a potential danger to any organization (don't give a damn if he has a folder filled with phDs or MBAs). Sometimes we can pick out their character from their immediate slight response such as that.

You'll find these kinds of people in any organization (surprisingly - big ones). But I just 'ignore' them. Let me tell you further, what happened to this guy (you're absolutely correct - he's a holder of MSc Computer Engineering - no offend Master/PhD holders...just don't take this guy as an example)

He did try to 'sabotage' the project but since the boss has been keeping an eye on him after that 'lousy' presentation and other 'past blunders' (before my time) - like spending a lot of company's money buying sophisticated gadgets, softwares, system, application etc. - his movements are limited and from the latest source, he is now being put in the 'freezer'.

Nik Zafri : The good part is that the project did won big awards - that much I can tell you and of course for the consultant...there was a big payout of bonus! Wanna know more? The project turned out to be an 'application' sold throughout the company branches and affiliates but of course..my agreement didn't include 'royalty'..but it's ok..the bonus was cool

Anyway you were absolutely right. Cut the jargon, stick to the language that people can understand and you will fare better than the so called "self - claimed" techies who think they are so far ahead compared to others. Using jargons to impress is nothing new. Normally these are low self esteem people who wants to be seen as somebody great.

Nik Zafri : Yeap...laymen term and getting straight to the point. I love the idea of having various 'Guides for Dummies' - the books are really popular!
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Almerica's Response - Posted: 31 August 2006 at 12:30am and Nik Zafri's Response - Posted: 31 August 2006

Haha! That's great my friend. Definitely deserve it more than Mr ICT in the freezer! Hmmm, the big payout sounds very exciting cos at least you get what you are worth and for the success you brought for them. Hey next time you have too many marketing consultancy work in KL to handle, call me, hahaha. Here in Pg when a consultant like us gives the clients some great ideas and concepts, many of them pay you less than what you ask for, use the idea and tell the whole world what a genius they were to come out with such innovative stuffs..... Heck they were some corporate branding excercise that we propose for our client here, that though may costs thousands less compared to the rates in KL they still get a toothache. Or they ask you to provide suggestions and ideas and they mess it up with some funny illogical concoctions of their own and then say it didn't work. Haha can;t win them all.

Nik Zafri - Eric, actually at some level, I feel greater satisfaction in having 'been chosen' to contribute towards project success. Of course there are some monetary matters to be considered as well. But you would feel the 'worthiness' of the amount being paid to you knowing the fact that you have done a good job.

The Star Global Malaysians Forum - Posted: 08 September 2006 at 8:59pm

Awareness must come from people like us. We must keep educating in any way we can even it may take ages. The order and chaos are co-existing but the choice is always ours. Our effort even a small contribution but in good faith would definitely help somewhere..to a certain extent - Every little bit helps.

The idea of having people who still care is the best we could do for now (I wish there's a better solution) in common scenarios like :

a) 'you're on your own' -> it's you who will make the change or it's a dirty job but someone has to do it. I view these as you can't do anything by just sitting and watching or hoping everything will be OK. To me, participating in this forum would reflect at a minimum level - your intention to help out even merely by talking or giving opinion/views.

b) 'ask not what the government can do for you but what you can do for the government' -> yes, it sounds a bit rhetoric again but if you think carefully after reading this phrase (It's a call for help) - > how do you define government? Can it exist without people, can it exist without votes. Again, it's our hands that are causing the government to exist. It takes two to tango!

c) 'If you can't get to the government, let the government comes to you' - we must not give up hope, keep trying. Someone somewhere will see your good intentions. But if you fail to gain attention even how hard you tried, there will be predecessors if not your own children.

In my past, my management plans have been nicknamed 'poison' by one ex-employer. But of course, I don't easily throw what seemed/claimed to be 'poisonous' to them because I believe that 'People reject to what they don't understand" or "People are scared of change" and most importantly I believe that 'the poison' they were referring to are actually 'a cure' to their 'illness' or perhaps other people's illness somewhere else. It's very sad that I have to resign from that organization just to prove myself right - lucky me - I don't easily give up. I joined another company (bigger than the previous) and miraculously, against all odds; ironically, what seemed to be the 'poisonous' plans were actually 'cures' to the new organization. Would I have thrown the plans away, I would not have reached this far. And you know what? The previous employer had the guts to come back to me and expressed how 'stupid' he was to not stop my resignation. But I; in good faith; calmly/sportingly replied to him that his company was not the 'chosen one'...what to do..it's fated I guess. But I did want to help his company back but the employer chose not to accept because he felt a little bit 'shame'.

c) 'nobody is wrong, everyone is right', 'nobody is right or wrong' -> which one are you?

Someone once asked me : "Can you do a better job Nik if you're chosen to lead the Government?" I said : "It's not an easy job" - "The chances are, I could be doing worse " BUT "I do know that I don't have to be a politician or authority to uphold good/best practices and principles"

Nobody thought that the Walls of Berlin can be finally crushed down. Nobody thought that Malaysia can have their own cars. Nobody thought that the speed of sound can be broken. Nobody thought that we can go to the moon. Nobody thought that ICT/information/knowledge will become one of the most important asset in our lives...

But in the course of history, negativities have prevailed in 'burning Joan of Arc', 'murdering Mahatma Gandhi and Lincoln', 'branding inventors/scientists as magicians' etc. etc. I'm sad to think of the fact that there must be casualties/martyrs in order to help humanity reaching what we define today as 'civilisation' or 'peace' or whatever you want to call it. In a way, I'm beginning to understand why we can't tamper with nature - for eg. In the jungle, tigers/wolves have to eat smaller animals in order to survive, seagulls have to eat fish or newly born turtles to live - it's the survival of the fittest. It's the way you perceive it or see it. If you see tigers as 'bad animals', then you will shoot the tiger not knowing (or ignoring) of what would happen to their cubs.

Well, I believe - if we keep frequently seeing things negatively (not that we cannot have 'benefits of the doubt' at all) - they will stay negative in our hearts and worse - these negativities will dictate our actions. But if we try to turn 'weaknesses' into 'strengths', it will definitely be positive to us so long as you have faith and confidence - whatever happens.

Being a normal human being - despite God is so powerful and can 'bring' food to your doorstep without putting any effort - we still have to find or have a job; even if it's small one as this is what we are and being created for (with brains, limbs and senses) I don't deny the fact that miracles exist (or at least 'luck') but hoping for too much miracles (luck) may lead us nowhere. On the other hand, I've seen miracles/lucks happening when I put some good effort on certain things.

There must be a point whereby we must learn to give credit to ourselves, being satisfied or feel the thrill of victory in our lives (in our very own ways) - even how small these can be. Give hope to yourself if you fail to give hope to others.

The one question that came to me during my 40th birthday :

"Have I made the difference?"

I don't believe that people will always resort to dissatisfaction all the time. Pain and bad memories are something you can't erase, you have to bring them with you but how you're going to deal with them later that matters most - anger? fear? vengeance? or not letting us to be 'beaten' again.

There will always be 'pros' and 'contras' in everything and it will stay that way till the end of the world. But best thing is that it's these pros/contras that help nation building - believe it or not. Just like having catalyst in chemical. But if there's too much of pros or too much of contras...then our world will never go anywhere.

Don't be sad if you have to do mistakes or making the 'wrong' choices in our lives. After all, we are only human. After all, to err is human.
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Response by adie/ghost001 - Posted: 15 September 2006

A very good comments indeed Nik. Yes, we can never know what's prepared for us in the future. We only know the remnants of the past and try to improve the present and the future with it. But there's no point of trying to improve the future so much if we haven't learn from our past mistakes.

I agree with you on becoming 'independent' as today's world is like, nobody knows you and you don't know anyone. But if you strive hard enough you will succeed but one thing requires explanation - although I understand what you mean by predecessors but how to let the government come to you? (Perhaps I'm not as smart you are..can you please enlighten?)

I'm sad reading the part when people thought you're bringing 'arsenic' whereas in actual fact, you're bringing 'antedote'...I remember reading your pal's opinion almerica that clearly indicated you as a guy who don't like 'craps' and getting straight to the point. Well you did prove to the old management about the new management you later joined did you not?(almerica, I noticed that you've met Nik, is he the kind of the same person?)

I have no comments on the rest of your views as they are 'self-explanatory' but I think, having seeing your web and the forum here, you have made the difference.
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Response from Almerica - Posted: 18 September 2006 at 2:13am

Hi ghost001, yes, I've met up with Nik albeit it was just a very short hello and get to know session. A very active fella I might add (hehe). The most important thing is that this forum provides every one of us the opportunity to make our voices heard (well at the least, it is heard by those who share a strong belief in doing the right things and doing things right!), so keep it up with your postings.
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Posted: 19 September 2006 at 7:11pm

Hi ghost001/adie, glad to know that you've quoted my names here and there in many threads. But a piece of advice - be yourself and not be me.

I see great potentials in you (quite a good judgement of character myself) even you're not one of my 'apprentice'. (Yes, I do have so many 'apprentices' that have succesfully 'go places' under my strict supervision & guides) I'm sorry if this statement may appear 'arrogant' to you but I mean well. I do not want people to say that you're some sort of my crony..please...

Happy Foruming
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Response from adie/ghost001 - Posted: 19 September 2006 at 7:21pm

Thank you for the good advise and I'm really sorry if I have gone overboard although I thought that's part of being a fan is all about. Sometimes I didn't realize that I'm doing something that might attract your unnecessary attention. Yes, I know your PMs and emails are full becoz of me and sometimes I admit that people do get irritated on my persistence.

I understand perfectly what you mean as you're the kind of person who likes to say things 'straight to the face' and I really admire you for that. But - If I have the opportunity, I would like to register myself to become your apprentice - seeing your principles and beliefs are good enough for me and I won't be turned off by your last comments but on the other hand, I will treat them as constructive criticisms.

Kudos to you my friend!
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Nik Zafri's Response - Posted: 19 September 2006 at 7:27pm

THAT'S THE SPIRIT GHOST!!!

But please understand, not that I don't want you to use my name at all in your threads (for e.g. using 'quote' button..that's ok with me - interactive/comments) - but not too much like 'Nik says this and Nik says that or because of Nik etc.'...I don't like it. I can take praise & admiration but not fanatism or obsession.

I may consider you to become my apprentice..one day. You are one of a kind - ghost (kinda remind me of myself when I was your age) Alas, please remember in one of my last thread - I did say "We must learn to give credits to ourselves". I'm a humble man, ghost but not too humble as this attitude may potentially turns into 'inferiority complex'. A lot of people tend to take opportunity when you're being 'too low' (Take this as one of the lesson if you want to become a good businessman)

Withdrawal doesn't always mean that you're loosing..but you're actually restrategising.

Cheers...
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Response by Almerica - Posted: 20 September 2006 at 12:39am

Hi ghost,

The best judge is yourself. You can gauge your own level of daily performance and personal expectations every night when the day is done. Just ask yourself these questions before you knock off to bed.

- Did I really do things that were of value today?
- What did I do right? What did I do wrong (or what haven't I done that I should have)...and Why?
- What did I learn today? How can I use what I learnt today to be applied to what I can do in the future?
- What happened today that made me feel good/bad and why?

Then remember them and rectify what you think you did wrong (or do what you didn't do which you could have done) OR practice and try to inculcate the good things you have discovered or learnt.

Imagine if you can rid yourself of 1 bad habit in just a week and adopt 1 good thing you have leant in a week...in just one year you would have eradicated 52 negative habits of yours and adopted 52 positive traits. Tell me then that you need a mentor when in fact you would have been qualified to be a mentor to others.

But the key is that when you analyse yourself and the situations everyday, don't let the devil on your shoulder try to give you excuses on why you had to do something this way or that way...just be honest with yourself because you can't afford to lie to yourself just to make yourself feel better. Simple right?
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Response from adie/ghost001 - 20 September 2006 at 2:07pm

Thank you for the good advise almerica. I'll try to remember them. It's a sign of care from GMN members and I really appreciate it.

The Star Global Malaysians Forum - Posted: 02 June 2007 at 3:21pm

I always ponder on this subject since I was a kid – perhaps influence from sci-fi stories. Will we be seeing building designs of the future be different or with the sophisticated looks? Or perhaps getting taller and taller?

As I entered the 90s, yes, I have seen some futuristic developments as I expected when I was a child. But do you think, the building will be taller and taller in the future?

I don’t think so. Of course, once people become really economic-conscious, this skyscrapers would no longer be built as you don’t have proper justifications in terms of economy. Just visit any skyscraper in the world today - look at the ‘small’ office spaces as you go further up? And look at the rental price?

But if you all ask me, will digital age encounter higher evolution as time goes by? My answer would be a big ‘YES” and to evolutionize the digital age, you do not need to build high buildings, right?

You can just ‘go anywhere’ to find :

a) ‘wi-fi’ and ‘wi-max’ – a very rapid evolution of broadband which started from leased line which started from ‘dial-up’

b) ‘3G’ facilities – a very rapid evolution of GPRS, Bluetooth which started from WAP.

then you’ll get connected to the world - and these technologies are getting better and better as I speak now!

Now why would people build tall buildings on the first place? If you study carefully, the typical claims would be :

a. to denote some kind of success and glory via ‘monuments’,

b. plus (ironically) also an indication of the lifestyle of rich and famous, the taller the penthouse or CEO’s office suite be, the ‘taller’ the ‘success level’ would be

So, do you think, this philosophy will still be valid in the future? (Maybe now) I think what we’re facing now is part of the new industrial revolution (we’re still in the learning stage) and soon when quality genuinely takes its place, we would be concentrating to building a more secured, stronger + environmental friendly superstructures – green buildings (not necessarily high)

Now how would I know this? I see ‘signs are happening now’. I noticed that some true rich men coincidentally related to the digital business – surprisingly prefers lower buildings with good surroundings - just look at Google, Yahoo offices and even Microsoft building in Richmond. Now these firms are more into evolutionizing digital technology rather than making skyscrapers to denote their success.

Now the following are what I foresee (not Nostradamaus-oriented) :

a) The current skyscrapers will stay the way they are but new ones will no longer be built,

b) Even if there are new buildings to be built, the focus would be on reliability, strength, longer life-cycle and especially environmental friendly elements – in simple terms – GENUINE sustainable development,

c) Digital technology race and evolution will come to a total halt one day (but not as soon as skyscrapers) and we would still be maintaining what we have – possibly try to go back to the basics as much as we can.
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Response from flick068-Posted: 02 June 2007 at 4:34pm

I think you're not very far off in your Nostradamaus-oriented predictions. The current movement is towards green and sustainable buildings rather than glorified monuments. Although glorified monuments seems to be de rigueur in developing nations eg India & China. For eg, just read in today's paper a billionaire in India building a 60-storey palace with helipad, health club, etc for his business/office and home, just 'coz he can! If you've got it, flaunt it type of mentality I suppose. And look at all the one-upman-ship happening around in Shanghai, Taiwan, Malaysia included on who builds the tallest, longest, biggest building... (how about a building that works and not crack or leak would be better don't you think?)

Once people realise about scarcity of resources and the need for sustainability then the buildings will follow. In some ways the developed nations are getting there because they are the first to feel the effect, in a way.

Also, with the digital movement, it will change the way people work. Perhaps more people will work from home and there won't be need for massive office buildings - although i think this is much further away in the future.... i don't think human bosses have the necessary skills to manage staff remotely (another whole different discussion on human bosses' skills....)
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Nik Zafri's Response : Posted: 08 June 2007 at 2:46pm

Hi flick, thanks for seconding. The more I look into this matter, the more I see few things :

a. We have to learn the hard way - that is when the environmental factors started to deteriorate profusely, only then, people will understand that how important to safeguard nature in order not to destroy the future of their very own future generation. (many countries started out where we started. Some realized fast and drew the line to block the 'madness of unsustainable development' plus restarted trees planting but some countries were left very far behind and awaiting destruction - as a result of their own past guilts)

b. The (a) factor is very much related to serious need for attitude change - ignorance, talking hypotheses/dissertation (talk the walk), no follow-up action taken, waiting for something to happen first (reactive and corrective or firefighting attitudes) etc.etc.

Indeed ICT evolution should be channelled towards educating the people proactively!