< Previous20 C EO M I D D L E E A S T NOVEMBER 2020 BUSINESS | TRAVEL ANALYSISBUSINESS | INDUSTRY ANALYSIS: TRAVEL Many companies realise this and have actually been preparing for the future of living with COVID-19 for the unfore- seeable future. The level of RFP activ- ity since March 2020 for many Travel Management Companies from a regional and global perspective has been boom- ing despite the slowdown in travel. In order to have a hybrid business model in the future of WFH and face to face it’s important for the C-Suite to ensure they are working with a travel agency than can offer their services seamlessly 24/7, has a global footprint of support in other coun- tries to help their travellers which is also backed up with the technology that helps minimise disruption to their journey. This spike in requests from travel buyers seeking advice on many areas that we specialise in such as consolidat- ing travel programs across countries, expertise in traveller safety, advance reporting capabilities, mobile app sup- port, online and offline technology and providing up-to-date information from government regulations, to traveller pre-requisites and travel policy approval systems to help control budgets is what has been keeping our sales, implemen- tation and account managers at FCM Travel Solutions engaged and occupied over the last several months. Business travel still has many cham- pions who adamantly believe going the extra mile forms closer professional con- nections and ultimately leads to higher net profit. Our customers are willing to get back in the sky again, when they can and travel to their usual destinations and the level of future bookings, we have in place currently, albeit obviously lower than this time last year, are the highest we have seen since March 2020. Who are these travellers? CEO’s, C-Suite and those that travel for sales and client- related meetings have been the first to return to the skies as borders open. It’s obvious that pre-COVID-19 busi- ness travel levels will take a while to re- turn to the same level, but we forecast an acceleration at some point in the region, business travel as a key method to build rapport, relationships and trust, go with our gut feelings and the general likeability we build with people which many have not yet mastered in the virtual world when pitching from scratch with someone you have never met in person. “The virtual world has been the sav- iour for many companies but the longer term need to travel within the Middle East region and longer-haul is an impor- tant step to business travel recovery”. Travel procurement teams in the Mid- dle East reported within our recent survey that whilst travel in their business had reduced, they were still busy in their roles managing the interpretation of airline and hotel supply changes over the recent months. Internal travel program changes were noted across client procurement teams relating to travel policy, reporting, traveller tracking, updating and educating travellers on key important areas. Go the extra mile. In-person meetings are always superior to virtual ones. “BUSINESS TRAVEL HAS MANY CHAMPIONS WHO BELIEVE GOING THE EXTRA MILE FORMS CLOSER PROFESSIONAL CONNECTIONS.” TIME TO FLY? Policy vs profit The CEOs that did not reduce their travel during and after crisis times saw their company growth rates overtake those that stopped travelling.NOVEMBER 2020 CEO MIDDLE E A ST 21 as businesses will face increased pressure to win and retain business among key clients after peers begin traveling again. The evidence has been documented already from previous global events, such as the impact of 9/11 and the global financial crisis in 2008. Those CEOs that decided not to stop business travel within their organisations, meet suppli- ers, customers and staff, grew their profit levels and became stronger than those that stopped business trips and enforced strict no fly policies. CEOs should be looking to imple- ment a combination of virtual technol- ogy, WFH and face to face strategies to ensure the success of their business. Reducing office space environments will help drive costs down as will decid- ing on what is considered a necessary business trip reason. Reinvesting such savings and setting it aside for face to face meetings to build better relation- ships and close deals will no doubt offer return on investment as closed deals and conversion rates increase. Even after workers feel safe to meet in offices again after the coronavirus pandemic, virtual meetings can still be a useful tool for quick and easy interactions for businesses of any size. Personally, I’d rather invest 2-3 days on a business trip meeting fellow col- leagues, clients or prospective customers on the same time zone, in the same room, and trying their local food and learning more about their culture rather than at- tending several zoom calls. Business travel will continue to play an important role in a company’s strategy and growth, despite the virtual world we have found ourselves submerged in due to COVID-19. While video and conference calls are important in today’s world, when it’s time to sign a new contract, close a deal, those companies that take to the skies usually end up winning the contract. There are many factors that influence success, whatever the form of measuring that success maybe, but no matter what we may believe, most business deci- sions we make are the direct result of a beneficiary’s likability and that choice really comes from the gut. The majority of us all want to be surrounded by people, customers and suppliers whose company we enjoy, and the best way to discover them is to meet them face-to-face. It’s evident that corporate travel is far from an unnecessary cost. It’s an invest- ment for the individual and the organisa- tion, and when you invest in it wisely, it’s one that’s almost certain to pay off. Our industry however also has an important role to play itself to boost the confidence of our clients and their travel- lers. We need to be able to reassure them that face to face meetings are safe, equip them with the necessary support, infor- mation, technology and protocols which will instil trust and stability. “VIRTUAL MEETINGS CAN STILL BE A USEFUL TOOL FOR QUICK AND EASY INTERACTIONS.” Building strategic relationships. Corporate travel is an investment in the individual as well as for the organisation.22 C EO M I D D L E E A S T NOVEMBER 2020 BUSINESS | BUILDING A BRAND CULTURE N TIMES OF CRISIS, CULTURE IS the ‘North Star’ for an organisa- tion: something you rely on to navigate through uncertainty. Throughout the Covid-19, pandemic, organisations with clear purpose and strong cultures demonstrated that they can stay con- nected and become stronger. But these traits don’t come down to great hires or good luck, they are the natural outcome of a strong and well-designed culture. In Deloitte’s Human Capital Trends, 9 out of 10 executives cited culture as important, yet only 12% of companies believed they understood how to develop a performance-driving culture. To thrive in the ‘Next Normal’, lead- ers need to acknowledge that in order to achieve positive results, they need to build from the inside out. Building the right culture and prioritising employee experi- ence are strategies that will not only get companies through this crisis, but allow them to thrive into the future. Demystifying the problem There is a saying that I like very much: “We cannot change what we don’t see”. While leaders readily discuss strategy, business models and bottom line, culture remains an intangible topic, anchored in unconscious behaviours, mind-sets and patterns that aren’t so easily defined. Every leader’s key challenge remains to populate their organisation with the right people and then empower them to bring their full potential to work. Accord- ing to the Global Human Capital Trends Report, retention and engagement have risen to No. 2 in the minds of leaders and there is a wealth of research that asserts that culture that drives performance, productivity and engagement. A Corporate Culture and Perfor- mance study by John Kotter and James Heskett found that companies that manage culture demonstrate revenue growth over a 10-year period that’s 516 percent higher than those that don’t. Another study found companies that manage their culture have 30 percent I WITH COVID-19 SHINING A SPOTLIGHT ON CORPORATE CULTURE LIKE NEVER BEFORE, LEADERS AND BUSINESS OWNERS INCREASINGLY UNDERSTAND THE NEED TO WORK ON THEIR COMPANY CULTURE. IF YOU AREN’T QUITE SURE WHERE TO START, YOU ARE NOT ALONE, SAYS BRAND CULTURE EXPERT AND EXECUTIVE COACH NURCIN ERDOGAN BRAND CULTURE IS THE NEW BLACK: HOW TO CREATE A CLIMATE THAT DRIVES BUSINESS NOVEMBER 2020 CEO MIDDLE E A ST 23 higher levels of innovation and 40 per- cent higher levels of retention. Those percentages speak volumes but in the majority of businesses, culture remains an area addressed predominantly and insufficiently by HR initiatives, such as team building activities or communica- tion training. Some companies allocate budgets to stylish recreation areas or office yoga, only to ultimately recognise that these do not impact on the sense of belonging or motivation of their employ- ees. There is nothing wrong with provid- ing great perks for your employees. But these alone will not build a culture that cultivates the specific behaviours that a company needs to succeed. What is brand culture? Brand culture is the inter-dependence of culture and the brand. Whether you have a consumer-facing product, a service, or a B2B business, your culture needs to be designed with the same focus as your strategy and products. Take for example the TechnoGym headquarters. Fans of this global wellness brand won’t be surprised to learn that inside its exquisitely designed building, offices feature fitness balls instead of chairs, healthy food and snacks are subsidized and there is a state-of-the-art gym for employees, as well as a host of benefits and policies that consider employee lives in a holistic, integrated manner. No won- der it’s the fasted growing luxury wellness brand in the world. However, when there is a mismatch between brand and culture, success can be jeopardized. Too often, leaders focus on building the business and miss the impor- tance of what it is being built. You build a great brand by using your brand purpose, values and positioning to develop strategy and guide operations, so that your brand isn’t just what you say, it’s what you do. The climate model Brand positioning is your promise to the world. In this model, an ‘apple’ is what you are delivering as your end product or service. The goal is to produce as many perfect apples as you can, grow your business and get better results. To get there, you need a thriving apple tree – your organisation. This is typically the HR function of your organisation. You need nourishing soil, which is leadership. And you need healthy roots: this is the processes of your organisation. You need the right amount of sun and rain for an apple tree. This is the climate – the brand culture. It’s transparent, complex and critical as this is what everyone in your organisation lives and breathes. In short, the climate is how you keep your brand promise. It is about what is really happening within, it is the manifestation of the true nature of your brand. COMPANIES THAT MANAGE CULTURE DEMONSTRATE REVENUE GROWTH OVER A 10-YEAR PERIOD THAT’S 516 PERCENT HIGHER THAN THOSE THAT DON’T. NOT JUST BLACK AND WHITE. Building a strong workplace culture requires awareness of your brand values. 5 things to remember 1. CULTURE IS TRANSPARENT When we don’t design culture, it’s still there, and likely not working to your benefit. Having an awareness of your current climate is the first step to designing the right one for your brand and organisation. 2. NO ‘ONE SIZE FITS ALL’ SOLUTION A culture that works perfectly for another organisation might cause a disaster in another. This is the reason climate needs to be bespoke to your brand. 3. IT’S NOT AN ‘HR ONLY’ TOPIC A true brand culture design or transformation requires involvement and contribution across the business. While HR remains a key stakeholder, key department involvement, contribution and ownership is critical. 4. IT’S A JOURNEY NOT A DESTINATION Brand cultures are not created or transformed overnight. It takes time and requires continuous focus. And leaders need to understand that culture will be impacted by climate and is a living mechanism that should always evolve. 5. TOP DOWN AND BOTTOM UP The CEO or executive board have to clearly define the purpose, actionable values, tone and experience, desired attributes and the principles of the culture. That being said, the executors of the culture are the “many others” of the organisation. Without their awareness, buy-in and behaviours, all the design efforts will be just a mental exercise and will not lead to the desired shift. Hence, the implementation phase need to create programs and op- portunities that engage the company’s key influencers. 24 C EO M I D D L E E A S T NOVEMBER 2020 BUSINESS | THE BIG QUESTION HEY SAY CONSULTANTS borrow your watch to tell you the time. And if that’s true, they’ve been doing so successfully since 1886, when the first management consul- tancy firm originated in America. The global management consultancy industry has a net worth of $250 billion and, according to Source Global Re- search, itself a consultancy, the sector has grown nearly 10 percent year on year in the regional GCC market, breaking the $3 billion barrier in annual billings. I have watched these big boys play from fairly close proximity. I have T MANAGEMENT CONSULTANCIES, AUDITING FIRMS AND EVEN CREATIVE AGENCIES ARE ALL HEADING DOWN THE SAME ROAD, BUT WHAT GOT THEM HERE, MIGHT NOT TAKE THEM FURTHER, WRITES GAURAV SINHA, CHIEF STRATEGIST AT INSIGNIA WORLDWIDE, A DESIGN, STRATEGY AND BRAND EXPERIENCE COMPANY ARE MANAGEMENT CONSULTANTS NOW TOO BIG TO BE REALLY USEFUL? THE CONVERGENCE OF CREATIVITY, STRATEGY, DESIGN AND MANAGEMENT IS TRULY THE FOREFRONT OF PROFESSIONAL SERVICES – BUT IT’S GOT A FEW FUNDAMENTAL CHALLENGES. Strategy maven. Gaurav Sinha is the founder of Insignia Worldwide.NOVEMBER 2020 CEO MIDDLE E A ST 25 witnessed them bruised by scandal and fined for unscrupulous activities – and at the same time been awestruck by their ability to brush off the dust and continue growing in both stature and billings. They are stalwarts of strategy, advising govern- ments and organisations on topics related to everything from innovation, research, operations, supply chain, financing to even bigger nation-building initiatives. (An exhaustive list of services, would be exactly that: exhaustive.) So what is it about these big multi- national firms that makes them so unique and powerful? They all claim to have the best minds in the business, great network, good analytical skills, prudent processes and generally most of the superlatives associated with profound insights and business management. One observation would be that when the big names work on a project, they are risk mitigators for managers. I can under- stand that, but can’t reconcile it. Most consultants are predominantly project orchestrators, pulling in local resources and talent to execute a project and then disbanding when a project is complete, somewhat similar to how movies are pro- duced by great directors, who repeatedly pull together a preferred cast of actors and crew to deliver a blockbuster. The butcher is the baker and the barber The Big Boys, as I fondly call them, are now gnawing at the fringes while trying to devour each other. They own design and digital firms, animation and branding companies, and their service stack is now a complex web of affiliations, adding to their arsenal of intellect and creativity. The convergence of creativity, strategy, design and management is truly the fore- front of professional services – but it’s got a few fundamental challenges. To begin with, conflict of interest issues riddle their ability to engage with new and emerging outliers and their size can hamper their agility to stay ahead of the curve, plus siloed operations can dilute collaboration and process-ob- sessed operations can potentially hamper innovation. The same applies with large network agencies or even smaller independent firms working in the realms of branding, campaigns, digital and social media. The lines are not just blurred, they are absolutely decimated. Agencies are now competing with online, tech and media giants who have their own creative directors and strate- gists. (It wasn’t quite the case in the old days when media simply carried advertis- ing and agencies created them.) Today, agencies are competing with freelancers, design is hyper-commoditized, the dark art of programmatic media is as nefarious as high frequency trading on Wall Street. Rabbit holes, worm holes and black holes have all converged to create an en- vironment where everyone is competing, and anyone and no one is the competi- tion. Whichever industry you might be in, the curse of the incumbent means a young, agile, independent start up most probably has an edge over legacy opera- tors. It’s time to batten down the hatches and prepare for positive transformation. The future is niche Here’s a thought experiment: Try ex- plaining your future plans without using the words “better or different” and you’ll find it’s not the easiest of tasks. When you use these words, in principle you’re upcycling the past, not creating a new future. So, the aim of the game, is to try and come up with a new way to define your business and how you will approach the future. Over 700,000 management consul- tancies operate across the world, offering a stable of services that are valued by organisations. The challenge is to cut through the clutter and make sure you can create a distinct position for yourself amongst the crowd. I did this by figuring out what I never want to do. Then I applied myself dili- gently to only doing what I love. Whose advice do you listen to? Management consultants claim to be experts, but are you working with the right one? “WHEN THE BIG NAMES WORK ON A PROJECT, THEY ARE RISK MITIGATORS FOR MANAGERS.”INSIGHT | EMPATHY HE GLOBAL PANDEMIC has forced businesses and governments to speed up digital transformation – in many cases, complet- ing in weeks what may have in the past taken months or even years. In the UAE, the launch of the AL- HOSN UAE app was swift and effective in helping protect the nation at a time of uncertainty. The app was designed to help T IT’S ONE THING TO NIMBLY RETOOL AND MODERNISE THE WORKPLACE. IT’S QUITE ANOTHER TO EXPECT WORKERS TO ADJUST AS SWIFTLY, WRITES HOSSAM SEIF EL-DIN, GENERAL MANAGER, IBM MIDDLE EAST AND PAKISTAN DO WE NEED A PANDEMIC TO INNOVATE AND EMPATHISE? 26 C EO M I D D L E E A S T NOVEMBER 2020NOVEMBER 2020 CEO MIDDLE E A ST 27 nity to help overcome the psychological impact of the pandemic. Today, many employees across all industries are being asked to innovate amid challenges of a kind they’ve never seen before, like massive spikes and dips in consumer demand. The move to remote work can also undermine the personal connections that help define many corporate cultures. And the quality and reliability of work-from-home tools may lag significantly behind people’s needs. Executives recognize that their em- ployees have been under intense pressure, and they contend that employee well- being is among their highest priorities. In fact, Seventy six percent of executives in the UAE think they have been helping their employees learn the skills needed to work in a new way. limit the spread of the virus by locating and identifying people who either tested positive for COVID-19 or have been in contact with a patient. And according to new research from IBM, nearly five in ten organisations in the UAE are increasingly prioritizing their digital transformation over the next two years due to the disruption the pan- demic caused across all facets of business and day to day life. This sense of urgency needs to carry over to any company’s most valuable assets—its people—as the users of that technology. In its new research, on COVID-19 and the future of business, IBM surveyed more than 3,800 C-Suite executives in 20 countries, including the UAE, and 22 industries. We found that even as companies have rushed to adopt the technologies necessary not only to survive but thrive as business enterprises, too many of their employees feel stressed and even overwhelmed. And executives recognize the problem: They reported employee burnout, inadequate skills and organizational complexity are their big- gest hurdles to progress today and in the next two years. It’s one thing to nimbly retool and modernise the workplace. It’s quite an- other to expect workers to adjust quickly to the upheaval. Too many people feel the pandemic has affected their mental health and well-being and they don’t think their bosses are doing enough to help them. Our executive survey indicates those workers are right: There is a gaping chasm between what executives think they are offering their employees and how those employees feel. To address this growing concern on mental health and overall well-being, the Ministry of Health and Prevention in the UAE established a dedicated hotline to respond psychological concerns and anxiety related to COVID-19. The National Programme for Happiness and Wellbeing also rolled out an online campaign to support the UAE’s commu- The ongoing disruption of the COVID-19 pandemic has shown how important it can be for businesses to be built for change. In addition, the study reveals that the majority of organiza- tions are making permanent changes to their organizational strategy. For in- stance, 91% of UAE executives surveyed plan to participate in platform-based business models by 2022, and many re- ported they will increase participation in ecosystems and partner networks. Executing new strategies may require a more scalable and flexible IT infra- structure. Executives are already an- ticipating this: the survey showed UAE respondents plan over a 26 percentage point increase in prioritization of cloud technology in the next two years. What’s more, UAE executives surveyed plan to move more of their business functions to the cloud over the next two years, with customer engage- ment and marketing being the top two cloudified functions. A flexible organisation that can transform itself quickly during the next crisis requires building trust and confi- dence among employees. And while we cannot be entirely ready without know- ing the nature of a crisis, what we have learned at IBM is that through leader- ship, empowerment, collaboration, technology and flexibility all businesses can better prepare for future threats. Positive change. Employee wellbeing has to take more of a priority if businesses are to thrive. IT’S ONE THING TO NIMBLY RETOOL AND MODERNISE THE WORKPLACE. IT’S QUITE ANOTHER TO EXPECT WORKERS TO ADJUST QUICKLY.28 C EO M I D D L E E A S T NOVEMBER 2020 LEADERSHIP G20 SAUDI ARABIA 2020 THE G20 MEMBERS The G20 (or Group of Twenty) is an international forum for the governments and central bank governors from 19 countries and the European Union (EU). In 2020, regional organisations are also invited, including: R The Arab Monetary Fund (AMF), R The Islamic Development Bank (IsDB), R Vietnam, the Chair of the Association of Southeast Asian Nations (ASEAN), R South Africa, the Chair of the African Union (AU), R The United Arab Emirates, the Chair of the Gulf Cooperation Council (GCC), R Republic of Rwanda, the Chair of the New Partnership for Africa’s Development (NEPAD) Formally known as the ‘Summit on Financial Markets and the World Economy’, the annual meeting of G20 members is called the G20 Summit. Washington, D.C. Buenos Aires Los Cabos Pittsburgh Toronto Ursula von der Leyen President of the European Commission ARGENTINA Alberto Fernández President EUAUSTRALIA Scott Morrison Prime Minister FRANCE Emmanuel Macron President BRAZIL Jair Bolsonaro President GERMANY Angela Merkel Chancellor CANADA Justin Trudeau Prime Minister INDIA Narendra Modi Prime Minister CHINA Xi Jinping President INDONESIA Joko Widodo President REALISING OPPORTUNITIES OF THE 21ST CENTURY FOR ALL EMPOWERING PEOPLE: By creating the conditions in which all people especially women and youth can live, work and thrive SAFEGUARDING THE PLANET: By fostering collective efforts to protect our global community SHAPING NEW FRONTIERS: By adopting long-term and bold strategies to share benefi ts of innovation and technological advancement RIYADH SUMMIT German Finance Minister Hans Eichel hosted the inaugural meeting 1999 The G20 was formally established at the G7 Finance Ministers’ meeting with an inaugural meeting on 15–16 December in Berlin 2016 The G20 Hangzhou summit advocated “innovation-driven growth” to inject new dynamism into the world economy NOVEMBER 2020 CEO MIDDLE E A ST 29 “On behalf of the people of the Kingdom of Saudi Arabia, it is my pleasure to welcome you as the Kingdom assumes the 2020 G20 Presidency and announce to the world our pursuit to create a cooperative environment for the G20 to introduce policies and initiatives that will fulfill the hopes of the people of the world.” King Salman bin Abdulaziz Al Saud Member countries in the G-20 Members of the European Union not individually represented 2019 guests G20 SUMMITS 2008 USA 2009 UK 2009 US 2010 Canada 2010 South Korea 2011 France 2012 Mexico 2013 Russia 2014 Australia 2015 Turkey 2016 China 2017 Germany 2018 Argentina 2019 Japan 2020 Saudi Arabia FUTURE SUMMITS 2021 Italy 2022 India KSA 2020 The G20 aims to bring together the world’s advanced and emerging economies Saint Petersburg New Delhi Hangzhou Serik Riyadh Hamburg London Cannes Rome Seoul Osaka Brisbane Collectively, G20 members represent: around 80% of the world’s economic output around 75% of the international trade around 66% of the of global population ITALY Giuseppe Conte President of the Council of Ministers S. AFRICA Cyril Ramaphosa President JAPAN Yoshihide Suga Minister for the Comprehensive Administration of the Cabinet S. KOREA Moon Jae-in President MEXICO Andrés Manuel López Obrador President TURKEY Recep Tayyip Erdogan President RUSSIA Vladimir Putin President UK Boris Johnson Prime Minister KSA King Salman Bin Abdulaziz Al Saud Ruler USA Donald Trump PresidentNext >