By Azhari Karim                                                                                                                                       
                                                                                                                                                      
DURING bad times, managers are likely to respond in a                                                                                                 
haphazard way - and along the way miss the essence of the                                                                                             
correct solution to problem.                                                                                                                          
                                                                                                                                                      
Automatically, employers will start to defer the payment of                                                                                           
wages and lay off workers. Some may begin to scale down their                                                                                         
operations or even cut down on orders and withhold payment on                                                                                         
supplies.                                                                                                                                             
                                                                                                                                                      
In extreme cases, producers and manufacturers alike will                                                                                              
resort to even cheating their customers. We have heard stories                                                                                        
of price hikes and products which somehow do not taste or look                                                                                        
like before.                                                                                                                                          
                                                                                                                                                      
All the above are responses from managers who have opted for                                                                                          
cost cutting measures overcoming what had been perceived as a                                                                                         
short and temporary problem.                                                                                                                          
                                                                                                                                                      
A problem like the current sluggish economic situation we are                                                                                         
undergoing now had been with us before. Only this time around                                                                                         
we have been given ample warning. Many have unfortunately not                                                                                         
paid any heed to the signals.                                                                                                                         
                                                                                                                                                      
The hardest hit are those in the speculative sectors of the                                                                                           
economy: monetary and banking institutions, financial and                                                                                             
stock exchanges, real estates and futures markets.                                                                                                    
                                                                                                                                                      
Many individuals have lost their entire savings with the                                                                                              
decline in value of stocks and shares.                                                                                                                
                                                                                                                                                      
The institutions involved in playing the markets suffered                                                                                             
similar fates with losses in the value of their capital assets                                                                                        
and having to cut back on their activities.                                                                                                           
                                                                                                                                                      
The timing has not been that inappropriate. For the country as                                                                                        
a whole, the economic indicators have been very good. Economic                                                                                        
activity has kept pace with financial soundness.                                                                                                      
                                                                                                                                                      
As a result, the Government has embarked on mega                                                                                                      
infrastructure projects to match the vision of making the                                                                                             
country an industrialised nation by the year 2020.                                                                                                    
                                                                                                                                                      
The private sector on its part has also been providing the                                                                                            
much-needed local investment and expertise. Foreign direct                                                                                            
investment has been equally impressive.                                                                                                               
                                                                                                                                                      
All in all, the economy was thought to be going on the right                                                                                          
track, albeit with a few bumps here and there such as the                                                                                             
widening current account deficit and the sliding value of the                                                                                         
ringgit.                                                                                                                                              
                                                                                                                                                      
What had gone wrong? The answers can be found in the structure                                                                                        
of the economy itself. Other problems emerged as a result of                                                                                          
massive development.                                                                                                                                  
                                                                                                                                                      
There were various dislocations involving social and cultural                                                                                         
values that had to be attended to. For a while, the crisis                                                                                            
appeared to be unmanageable. But good leadership prevailed.                                                                                           
This carried the country through the rough times.                                                                                                     
                                                                                                                                                      
The timing of the present economic standstill is also                                                                                                 
inopportune owing to the need to pick up on reforms of the                                                                                            
world economic system.                                                                                                                                
                                                                                                                                                      
Countries could not agree on a single code of conduct as yet.                                                                                         
Unilateral actions are still being pursued by the bigger                                                                                              
economies. The rules of the level playing field have been and                                                                                         
will continue to be flouted by more powerful countries.                                                                                               
                                                                                                                                                      
Sad to say, a similar rush to reform was not seen in capital                                                                                          
and currency trading. Here, the full reins of globalisation                                                                                           
and the borderless economy have been let loose.                                                                                                       
                                                                                                                                                      
Countries which have the means nearly always end up with the                                                                                          
bigger spoils. More interestingly, the role of the maverick                                                                                           
and unscrupulous speculators became more dominant.                                                                                                    
                                                                                                                                                      
What happened was unprecedented as country after country,                                                                                             
especially the South-East Asian economies, started to keel                                                                                            
over from the raids carried out by these people.                                                                                                      
                                                                                                                                                      
The full impact of the onslaught has yet to be felt by the                                                                                            
people in the region. Already, the repercussions have spread                                                                                          
to other countries.                                                                                                                                   
                                                                                                                                                      
Malaysia has decided to confront the problem directly by                                                                                              
calling for the setting up of rules and procedures for                                                                                                
currency trading. This is the sort of action needed during the                                                                                        
bad times which we are facing now.                                                                                                                    
                                                                                                                                                      
Again, Malaysia has taken a leading role to tackle this                                                                                               
problem. Indications are that we could garner enough support                                                                                          
to make the international community push forward with monetary                                                                                        
reforms which are long overdue.                                                                                                                       
                                                                                                                                                      
There are merits in the Government action. It can be described                                                                                        
as a levelling-out process. During bad times, this is about                                                                                           
the only course of action open to both managers and leaders.                                                                                          
                                                                                                                                                      
It follows from an initial step of the two-step process of                                                                                            
sorting And levelling. Good leaders must be able to sort out                                                                                          
first and then level.  It is a truism to say that before you                                                                                          
can level things, you must be able to sort out the problem.                                                                                           
                                                                                                                                                      
It is clearly a problem-solving technique that we are dealing                                                                                         
with here. The choice is up to the managers.                                                                                                          
                                                                                                                                                      
What do the terms stand for? To sort out is really to                                                                                                 
identify, classify, categorise and prioritise.                                                                                                        
                                                                                                                                                      
To level is actually to seek some uniformity either by raising                                                                                        
or lowering the standards, by reforming the systems, by                                                                                               
internationalising an issue, by privatisation or globalisation                                                                                        
or by calling for the rules of a level playing field.                                                                                                 
                                                                                                                                                      
Able managers and leaders have used both techniques.                                                                                                  
                                                                                                                                                      
There are examples throughout history that have shown that                                                                                            
leaders have achieved success by being great sorters and                                                                                              
levellers.                                                                                                                                            
                                                                                                                                                      
The Prophets have succeeded at both and notice how the various                                                                                        
religions have spread. Great leaders have stood by their                                                                                              
adherence to the principle of sorting and levelling.                                                                                                  
                                                                                                                                                      
Notice the way the struggles for, independence had developed                                                                                          
in India where Gandhi and Nehru, besides being social                                                                                                 
reformers have also triumphed at sorting and levelling things                                                                                         
out.                                                                                                                                                  
                                                                                                                                                      
Closer to home we can review the leadership styles adopted by                                                                                         
our prime ministers during both good and bad times.                                                                                                   
                                                                                                                                                      
From an analysis of their various policies, Tunku Abdul Rahman                                                                                        
used both; Tun Abdul Razak turned out to be a great sorter                                                                                            
while Tun Hussein Onn proved to be a leveller.                                                                                                        
                                                                                                                                                      
Datuk Seri Dr Mahathir Mohamad is very adept at both. The                                                                                             
general observation is that as a leader matures, he or she                                                                                            
tends to focus on a lot of levelling policies. Leaders of the                                                                                         
future Malaysia must have both abilities at their command.                                                                                            
                                                                                                                                                      
Coming back to the advice we can give to cope with these bad                                                                                          
times, we urge our managers to start by sorting themselves out                                                                                        
or their problems first Having done that, they can start                                                                                              
addressing the possible solutions.                                                                                                                    
                                                                                                                                                      
Areas that require some sorting out include:                                                                                                          
                                                                                                                                                      
* Wages and claims/allowances                                                                                                                         
                                                                                                                                                      
* Utilities                                                                                                                                           
                                                                                                                                                      
* Transport                                                                                                                                           
                                                                                                                                                      
* Rentals and leases                                                                                                                                  
                                                                                                                                                      
* Part-time workers                                                                                                                                   
                                                                                                                                                      
* Foreign labour                                                                                                                                      
                                                                                                                                                      
* Work permits                                                                                                                                        
                                                                                                                                                      
* Insurance                                                                                                                                           
                                                                                                                                                      
* Benefits payments                                                                                                                                   
                                                                                                                                                      
* Income tax/EPF/Socso                                                                                                                                
                                                                                                                                                      
* Medical                                                                                                                                             
                                                                                                                                                      
* Inventory                                                                                                                                           
                                                                                                                                                      
* Financial standing                                                                                                                                  
                                                                                                                                                      
* Payment Invoices/Vouchers                                                                                                                           
                                                                                                                                                      
* Letters of Credit                                                                                                                                   
                                                                                                                                                      
The list is not exhaustive but the manager can begin to                                                                                               
classify, categorise and priorities. Only after these are done                                                                                        
can the manager proceed to the second stage, of levelling out                                                                                         
the problems.                                                                                                                                         
                                                                                                                                                      
The most difficult part of the exercise is the sorting out                                                                                            
element.  One needs to have a clear mind, uncluttered by other                                                                                        
worries.  The levelling part in most cases will come about                                                                                            
naturally as the sorting part is completed.                                                                                                           
                                                                                                                                                      
One will begin to see commonalities, synergy, parallels and                                                                                           
similarities.  At this point, one is almost ready to start                                                                                            
"levelling".                                                                                                                                
                                                                                                                                                      
Managers must start using this sorting and levelling approach                                                                                         
in their daily routine during these hard times. I cannot                                                                                              
promise that it will work for everybody.                                                                                                              
                                                                                                                                                      
Those who have tried it have surely had surprising results.