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The Future Employee

The Future Employee

The future is now. Well, in some cases, the future is past. The sci-fi movie Blade Runner, made in 1982 and 2017, set the future in 2019. It got some things right (or at least headed that way in terms of flying cars and “android” helpers) and some things wrong (like the internet and social media). But it seems there will always be employees.

Thus far, employees are created from a particular education system. Formal education trains humans to understand existing technologies and systems and prepares them to join the system. After 20 years of schooling, the student is expected to pick a career. Everyone is born unique. Unfortunately, education standardizes them. Today, each person is not measured by her/his worth, but by pitching them against others studying the same standards.

So, what is the current education crop looking like? We are talking about Generation Z, the post-Millennials, born near 2000s (Bloomberg says aged between 7 to 22 in 2019), born post-internet. 2020’s tiesagers (passed teenage into tiesage). Gen z’s education brings in new approaches to education in terms of entrepreneurship, digital technology and personal branding at an early age. They are digitally literate (as opposed to educated). Preference for education in humanities are decreasing and STEM (science, technology, engineering and mathematics) are increasing. Gen Z are currently physically armed with internet, social media voice, science and technology in their hands; and psychologically faced with social media stress, climate change, family relations; and still schooling and high cost of living. These are the current future employees (pardon the oxymoron).

But the current crop of gen x and millennials are also part of the workforce. They bring with them experience, perspective, history and probably wisdom. They are also in transition towards higher digital literacy.

In the past, things were fairly simple following a fairly well-defined process: study hard and get a job, stay with the organization for the entire career, work way up the corporate ladder and building a nice retirement package. Hindsight is 20-20 vision and all that. But this is becoming an exception.

The corporate objective is moving away from mere profitability and returns to shareholders. Future employees look for corporate responsibility as much as learning.

So, what is the future looking like to these employees? These leads to few questions:

 

Will AI and automation take over future careers? Will my co-worker or supervisor or supervisee be a robot?

The only constant is change. It has happened in the past when we moved from rewarding loyalty with retirement packages and wrist watches, to annual bonuses, to hire and fire policies. Thinking AI and automation will take over future careers is like asking if discovering fire will result in extinction. AI and Automation are tools to help us. Hence, the future employee will or need to move high up in value-chain – both individually and operationally. There will be a rapid rethinking on moving away from our comfort zones to catch up and keep up.

We are already reporting and responding to robots. Be it to chatbots or IVRs or designing our CVs to respond positively to AI screening. The idea is acceptance to the change. The future employee and employer will already be adaptable to such changes.

 

Is lifelong learning a wise investment?

What if I train my employee and the employee leaves to work with a competitor? The answer is what if you don’t train and the employee stays in the organization? Training employees is like playing mah-jong or poker. So long as there are only 4 players, the same amount will remain in the kitty and there will be no challenges and profitability. One must not look at one playing table, but the whole room full of playing tables. When organizations return trained employees to the workforce, the country gains with higher skilled employees.

 

The HR future

What is required of a future employee?

The future employees must be “twingineers” – with the ability to work in both the physical and digital space. They must learn to be an Explorer – Multi-functioner – Innovator – Team player. The future employee must engage in lifelong learning to stay relevant both within an organization and in the global business environment. They will learn greater adaptability to take on new jobs and new roles and older ones become redundant due to industry 4.0. The future employees must learn that constant digital transformation in an organization is a given. They will learn application of relevant technology as there are and will be many options that technology will provide. There will be no more low skill, routine jobs.

 

What is required of a future employer?

Employers must be twingineers as well. correspondingly must provide for quick lateral shifts to the future employee so as to provide a working environment best suited to their uniqueness. Jobs must provide for customization and flexibility. Organizations must provide for ability to work across gen x to gen z, incorporate a consistent and adaptable digital culture, bring in agile corporate standards and bureaucracy. Corporate constitutions can no longer be written in stone. Learning is no longer on-the-job, but what the employer invests in the employee in terms of lifelong learning. Organizations must make employees future ambassadors of their organization. They can prove that they are returning better employees and therefore better human beings to the world. Investment in digital transformation should not be near-term business operations; it is a long-term strategy. Digital transformation should not be to protect legacy ways of doing business, but true transformation of the business itself. Employers can attract new talent for near-term but must train existing employees for long-term. Such lifelong training must be uniform to facilitate uniform integration of various skills and outputs.

For partnerships, speaker and general business enquiries with 2iB Partners:

Contact Person Dylan Tan
Designation COO
Email Dylan@2ibpartners.com

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Philippines 4.0 Skills Conference | 20-21st Nov

Philippines 4.0 Skills Conference | 20-21st Nov

In conjunction with Philippine Trade Training Center, Global MSME Academy, Thames International and accelebator, 2iB Partners will be speaking on Emerging Trends in Retail, HR Transformation and how to internationalize your business. 

 

Learn from 12 different tracks hosted and supported by experienced professionals and business men! The event will be held in the Philippines and attended by more than 300 other delegates. Find venue details below.

Venue:

Philippine Trade Training Center

Roxas Blvd.

corner sen. Gil Puyat Ave,

Pasay City,

Philippines

Date: Nov 20-21st, 2019

2iB Partners in brief

2iB Partners is a specialist M&A and management consultancy firm that has extensive networks with strategic buyers, MNCs, listed companies, investment networks and funds from US, UK, China, Philippines, India, Vietnam, Myanmar, etc.

 

2iB Partners help companies scale up and internationalize through inorganic growth, joint ventures or management consultancy. Through Singapore as a strategic base, 2iB Partners helps companies outside of Asia gain market access and companies in Asia expand internationally and regionally. 2iB Partners also provide ad-hoc entrenchment of highly qualified professionals and experienced businessmen to solve complex business problems through experience and insight.

 

For partnerships, speaker and general business enquiries with 2iB Partners:

Contact Person Dylan Tan
Designation Chief Operating Officer
Email Dylan@2ibpartners.com

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Managing Director, Yang Yen Thaw awarded Enterprise Singapore recognized Registered Management Consultant (RMC)

Managing Director, Yang Yen Thaw awarded Enterprise Singapore recognized Registered Management Consultant (RMC)

9th May 2019 – In keeping with Singapore’s standard of quality and detail as well as increasing 2iB Partner’s value adding capabilities to clients, our Managing Director, Yang Yen Thaw has been passed and been awarded the Registered Management Consultant (RMC) certification by the Institute of Management Consultants (Singapore). The certificate is a professional mark of distinction for management consultants, aligned to TR 43:2015 Management Consultants Standard and a qualification that recognizes him as an Enterprise Singapore Registered Management Consultant..  The RMC certification is also required for consultancy projects that intend to apply for grants such as the Enterprise Development Grant (EDG).

What We Have Done For Our Clients

Over the past years we have run a number of projects for our clients ranging from Mergers & Acquisitions (M&A) to management consultancy and business advisory. Our members had also previously worked for companies such as Adidas, Huawei and Indian Oil Company amongst many others.

For more details on our team profile, Click Here.

 

What This Means For Our Clients

This signifies that 2iB Partners Management Consultancy & Business Advisory practice will be able to give significantly greater quality assurance to clients and also deliver significant value-add to our Small and Medium Enterprises (SMEs) clients who fall under the grant criterions, i.e.:

 

  • Be registered and operating in Singapore
  • Have a minimum of 30% local shareholding
  • Be in a financially viable position to start and complete the project

Declared Domain Expertise

  • General Management
  • Strategic Planning
  • IP Diagnosis
  • Productivity Diagnosis
  • Innovation
  • Technology Management
  • Project Management
  • Financial
  • Merger & Acquisition
  • Valuations
  • Marketing & Branding
  • Human Resources
  • Learning & Development
  • Business Continuity
  • Business Excellence
  • Management Systems
  • Productivity
  • Law Firm Management

Message from Managing Director, Yang Yen Thaw

2iB Partners looks forward to helping companies expand their business universe through our Management Consultancy & Advisory practice whilst at the same time adding value to our Singaporean SME portfolio by assisting them with grant application for a leg up in their business.

More on the Enterprise Development Grant (EDG)

The previous Capability Development Grant (CDG) grant and Global Company Partnership (GCP) grant has been replaced by the current Enterprise Development Grant (EDG). The grants are provided as a leg up for companies rather than a crutch to help Singapore companies grow and transform.

[Below Excerpt is taken from https://www.enterprisesg.gov.sg/financial-assistance/grants/for-local-companies/enterprise-development-grant/overview ]

This grant supports projects that help you upgrade your business, innovate or venture overseas, under three pillars:

Core Capabilities

Projects under Core Capabilities help businesses prepare for growth and transformation by strengthening their business foundations. These should go beyond basic functions such as sales and accounting.
Innovation and Productivity

Projects under Innovation and Productivity support companies that explore new areas of growth, or look for ways to enhance efficiency. These could include reviewing and redesigning workflow and processes. Companies could also tap into automation and technologies to make routine tasks more efficient.
Market Access

Projects under Market Access support Singapore companies that are willing and ready to venture overseas. You may tap into the EDG to help defray some of the costs of expanding into overseas markets.

 

2iB Partners In Brief

2iB Partners is a specialist M&A and management consultancy firm that has extensive networks with MNCs, listed companies, investment networks and funds from US, UK, China, Philippines, India, Vietnam, Myanmar, etc.

2iB Partners help companies scale up and internationalize through inorganic growth, joint ventures and/or management consultancy. The 2iB Partners Team comprise of seasoned business owners and professionals who have deep and varied experience. For more info on our team members, click here.

For partnerships, speaker and general business enquiries with 2iB Partners:

Contact PersonDylan Tan
DesignationCOO
EmailDylan@2ibpartners.com
Mergers & Acquisitions – simplified. Or, a practical guide

Mergers & Acquisitions – simplified. Or, a practical guide

The term “Mergers and Acquisitions (M&A)” is generally used in one breath, but they are different. Let us go back to basics.

A merger means 2 companies combine to become one with some legal variations where one company loses its identity, or share the identity or create a new one. Though mergers are between companies, in some cases the Government may help facilitate a merger by passing a law. This is rare and controversial.

An acquisition means purchasing of assets of another entity. The assets could be shares in whole or part, business, property or combinations of them. However, in this case, the acquiring entity is the dominant one.

The philosophy for both may be for growth and size. The reasons may be taking advantage of a bigger name, market access, clearing past mistakes, pool resources, reboot the respective businesses, combining products or simply to be bigger.

The risks of M&A have been covered in an earlier article When Mergers & Acquisitions Don’t Work. In addition to the problems listed there, there are also legal risks of anti-trust and anti-monopoly laws in large M&As.

 

M&A process

  1. Strategy
  2. Identification
  3. Preliminary Due Diligence
  4. Expressions of Interest
  5. Detailed Due Diligence
  6. Definitive Documentation
  7. Post M&A

 

1. Strategy:

M&A begins with an idea in a company that helps it increase market share and access, talent acquisition, product or technology acquisition, growth and size. Each of these deal drivers help narrow down the potential target companies and the regions they operate in. The prepared profile also helps in the preliminary due diligence.

At this point, it is also important to know the type of company to be added to the company’s portfolio. Whether there is a philosophical fit and proper post-integration timelines have been added.

Why M&A:

  • Why and what are you acquiring?
  • Boosting current performance
  • Acquiring resources, premium pricing
  • Acquiring resources, lower cost
  • One-stop shop
  • Reinventing business model
  • Acquiring a disruptive business model
  • Acquiring to decommoditize
  • Paying the right price
  • Avoiding integration mistakes

2. Identification:

In line with strategy, identification of potential companies for a merger or an acquisition by a company takes place. Identification can be conducted by business and management consultants, investment bankers, business brokers, lawyers, accountants or simply, by the company/individual itself.

Most target companies that are amenable to acquisition (not merger) may be distressed companies i.e., debt laden. They may also have management or shareholder issues, hit a sales / revenue ceiling, danger of disruption, funding issues.

Acquiring a business:

  • Brokers: Business and management consultants, investment bankers and bank special assets group, business brokers, lawyers, accountants, news sites, business sites, networks and close circles
  • Reference/reputation check: market information, clients, employees
  • Level of distress
  • Meeting, discussions and negotiations with owner
  • External affecting factors such as lenders, shareholders, third parties
  • Continued use of target, reinvent or retain current business plan
  • Requirements of target and cost of acquisition including IP, database and assets
  • Goodwill and reputation

3. Preliminary Due Diligence

During or simultaneous with the identification process, a preliminary due diligence or DD should take place. Available online search including LinkedIn on the key persons involved, other directories with brief information, reportage about the company and persons involved, references from common friends and resources, ex-management and employees.

An important aspect of DD is that it is not a singular process. It can be in two parts. One, if there is trust and two, the detailed DD.

The deeper the general DD, the longer lasting the M&A. Identification is not only about targets that add to the bottom line. It greatly improves the credibility of the target when the representations made matches with the final DD.

A few dollars spent in the initial stages will go a long way in either a long-lasting relationship or a much valuable and cheap lesson learnt for future projects. It is a relationship because it involves not only internal personnel, but clients and customers post M&A as well.

4. Expressions of Interest

The companies may then reach out directly or through third parties to evince or find out interest in M&A. A series of meetings will take place. May also involve exchange of contracts relating to confidential information, circumvention or solicitation.

Next is an exchange of expressions of interest. These may be simple email exchanges, formal letter of offer, binding or non-binding term sheets, memorandum of understanding or an agreement.

5. Detailed Due Diligence

A formal process involving exhaustive inspection and review of documents and information to see if assets represented are true and uncover any unstated liabilities. DD may involve commercial, financial, technical or legal DD. The DD process may take over 3 months to conclude.

6. Definitive Documentation

These are the final documents signed and executed and assets transferred. They may include – sale and purchase, share transfer, share subscription, management/key employment agreements or variations of these. There may be additional documents such as restated charter documents, shareholder, escrow, closing and future engagement contracts.

7. Post M&A

This involves philosophy, leadership, legal documentation review, management review, integration, training, regulatory and statutory compliance, corporate compliance, operations, human capital reorganization, customer/client contracts, change and culture management, risk management, name change processes, corporate communications.

 

 

 

 

Merged & Acquired – Solution

  • M&As are delicate subjects. In these cases, I say that the shortest distance between two points is never a straight line. Diplomatic skills, EQ, empathy, motivational theory applications, change management and cultural integrations are pre-requisites for a successful M&A. This actually saves time in the long run and are the multiple points that in fact bring the main 2 points together.
  • Capture and reallocation of HC in merged or acquired companies. This capital which has high return on investment in an M&A.
  • Guanxi – Like most Chinese expressions, guanxi is complex. Simply put, it means “relationships” (but without hierarchy). Build understanding and acceptance before M&A. It forms what I call Human Due Diligence.
  • Find professionals that give you the paradoxical and elusive “Collaborative M&A with Organic Growth” that consider contribution by all parties to an M&A to help each other increase output, increase customer base, improve and develop new products and successfully deploy HC.

Is having a Corporate Social Responsibility (CSR) program just a cost to your company?

Is having a Corporate Social Responsibility (CSR) program just a cost to your company?

Developing great companies that give back is more about devising a clear Corporate Social Responsibility (“CSR”) program aligned with the company’s goals and values rather than forcefully integrating CSR with their business strategies and goals. Instead of passing it off as a short term marketing gimmick, CSR should be seen as a long term investment strategy.

 

Some benefits that a good CSR imparts to a business:

  1. Improving name recognition
  2. Boosting brand reputation among consumers
  3. Increasing sales and positive consumer sentiment
  4. Assisting in efforts to recruit and retain talented employees
  5. Improving the quality of life in communities where you do business

 

Some companies with example of good CSR model:

 

Coca-Cola’s 5×20 program

Companies are no longer looking at CSR as a marketing move, but rather as a long-term investment. For example, the Coca-Cola Company’s 5×20 program aims to bring five million women in the developing world into its business as local bottlers and distributors of Coca-Cola products by 2020.

This investment to empower young women entrepreneurs will obviously generate more revenue for Coca-Cola because they will have more bottlers and can sell more product. But at the same time, this type of investment will undoubtedly lead to better-educated people and eventually, more prosperous communities in areas that need help.

VISA

The corporate social responsibility model implemented by Visa provides financial opportunities for people in developing areas of the world. By partnering with local governments and nonprofit organizations, people who previously did not have access to the benefits of banking and financial services now do.The Gates Foundation found that this type of service helps low income and poor people manage their finances in trying times, build assets, and increase connectivity worldwide.

 

CSR as a cost-saving measure

Other companies look at CSR as a way to save money. Energy efficiency is a good example. Wal-Mart has three goals of its social responsibility policy: to be fully supplied by renewable energy, to create zero waste, and to sell products that sustain people and the environment. These are lofty goals, but if achieved, they will ultimately save the company a great deal of money.

From savings to developing loyalty with consumers, the benefits of becoming a socially responsible far outweigh the costs. Companies can no longer to afford to ignore their social responsibilities.

 

Statistics

Statistics on Employee Engagement

Purchasing Behaviour

  • 55% of global consumers willing to pay extra for products and services from companies committed to positive social and environmental impact up 10% from 2011 – Nielsen 2014 Doing Well by Doing Good  
  • 42% of North American consumers willing to pay extra for products and services from companies committed to positive social and environmental impact up 7% from 2011 – Nielsen 2014 Doing Well by Doing Good  
  • 1/3 rd of consumers (33%) are now choosing to buy from brands they believe are doing social or environmental good. – unilever international study 2016
  • A study in 2014 by public relations and marketing firm Cone Communications and Echo Research revealed 90 percent of shoppers worldwide are likely to switch to brands that support a good cause, given similar price and quality.

Sustainability Influences

  • Among the 66% of global respondents willing to pay more, over 50% of them are influenced by key sustainability factors, such as a product being made from fresh, natural and/or organic ingredients (69%), a company being environmentally friendly (58%), and company being known for its commitment to social value (56%). Sales, and coupons didn’t even make the top five. For this group, personal values are more important than personal benefits, such as cost or convenience. – Nielsen
  • More than one in five (21%) said they would actively choose brands if they made their sustainability credentials clearer on their packaging and in their marketing.  Representing an estimated €966 billion opportunity exists for brands that make their sustainability credentials clear. – unilever international study 2016

Trends

  • Trend for purpose-led purchasing is greater among consumers in emerging economies than in developed markets. 78% in the US and 53% of shoppers in the UK say they feel better when they buy products that are sustainably produced, that number rises to 88% in India and 85% in both Brazil and Turkey. – unilever international study 2016

Attitudes on Social Responsibility

Millennials and Work

 

Developing a CSR program is not necessarily just a cost, it can help propel your business forward, create a more civic conscious brand image while at the same time, giving back to society. A good CSR scheme should produce win-win outcomes.

 

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