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NO LONGER A MATTER OF PROFIT
FEB 14, 1999 - THE STAR
                                                                                                           
                                                                                                                                                      
ONE of the greatest challenges in leadership is to be                                                                                                 
surrounded with people who are generous with advice, people                                                                                           
who are prepared to speak the not-too-nice things, and people                                                                                         
who can offer the opposing view.                                                                                                                      
                                                                                                                                                      
The true leader not only uses all his brains but also borrows                                                                                         
all the brains of others.                                                                                                                             
                                                                                                                                                      
The Archillean heel of leadership is for the leader to be                                                                                             
surrounded by yes-men who feed on the ego of the leader and                                                                                           
hence- stunt his intellectual reach.                                                                                                                  
                                                                                                                                                      
A good source of knowledge is the university. A university is                                                                                         
the best organised institution for the coming together of                                                                                             
human intellect from across disciplines.                                                                                                              
                                                                                                                                                      
That is why most Nobel Laureates come from academia. Its first                                                                                        
job is to educate students by building up their brainpower.                                                                                           
                                                                                                                                                      
Biologically, we are all born with a brain of about 350gm                                                                                             
which is made up of 10 billion individual cells or neurons.                                                                                           
                                                                                                                                                      
As we grow, the weight of the brain increases, but the number                                                                                         
of neurons remains about the same until the age of 18 when we,                                                                                        
in fact, begin to lose about 100,000 neurons every day for the                                                                                        
rest of our lives.                                                                                                                                    
                                                                                                                                                      
It is, fortunately, not the number of neurons which                                                                                                   
contributes to our brainpower, but the connection through                                                                                             
synapses that matters.                                                                                                                                
                                                                                                                                                      
For example, in pursuing your degree, the new knowledge and                                                                                           
experience you gained causes the brain cells to respond by                                                                                            
forming new synapses so that new information is linked between                                                                                        
various neurons.                                                                                                                                      
                                                                                                                                                      
The more information and experience we are exposed to, the                                                                                            
more the communication between the neurons, allowing the brain                                                                                        
to function way beyond the 10 billion neurons as synapses add                                                                                         
a factor of 10,000 of the capacity of the neurons.                                                                                                    
                                                                                                                                                      
This is equivalent to 100 trillion bytes, or 100 million                                                                                              
megabytes in computer language.                                                                                                                       
                                                                                                                                                      
You will appreciate the power of the brain when it is made the                                                                                        
equivalent of one million computers of 100 megabytes each, all                                                                                        
connected together and working as one central processing unit.                                                                                        
                                                                                                                                                      
If the brain can be stretched so enormously, two observations                                                                                         
are apparent. One is that we can draw on the brains of others                                                                                         
and this is what leaders and managers do - to work with people                                                                                        
and to provide the conditions that will elicit the best                                                                                               
intellectual contribution from the group, in much the same way                                                                                        
that a family of computers can be much more powerful than a                                                                                           
stand alone unit.                                                                                                                                     
                                                                                                                                                      
The second observation is that if it is synapses rather than                                                                                          
neurons that count, it becomes obvious that the brain should                                                                                          
be continually stimulated or exercised to keep it in a state                                                                                          
of high alert.                                                                                                                                        
                                                                                                                                                      
Deterioration of the brain is a function not of age, but of                                                                                           
its insufficient and ineffective use.                                                                                                                 
                                                                                                                                                      
Empirical evidence suggests that the state of mental alertness                                                                                        
of some nuns in the United States at ages 80 and 90 is                                                                                                
ascribed to their affinity for working out puzzles and mental                                                                                         
games.                                                                                                                                                
                                                                                                                                                      
The lesson for all graduates is that receiving a degree is the                                                                                        
start and not the end of education.                                                                                                                   
                                                                                                                                                      
Swamped by the turbulent change around us, our mental faculty                                                                                         
must be continuously tuned to knowing, understanding and                                                                                              
engineering appropriate responses.                                                                                                                    
                                                                                                                                                      
With the exponential knowledge explosion over the last                                                                                                
half-century, universities are kept busy pursuing knowledge                                                                                           
for knowledge sake.                                                                                                                                   
                                                                                                                                                      
This is great, but exclusive attention to discipline is                                                                                               
inadequate to develop the companion purpose of university                                                                                             
education, that of the moral faculty of the individual.                                                                                               
                                                                                                                                                      
In days gone by, whether at the foot of Socrates, Confucius or                                                                                        
Buddha, or through medieval institutional learning at Oxford                                                                                          
or Genoa, it was moral faculty that occupied the centre stage                                                                                         
of human development.                                                                                                                                 
                                                                                                                                                      
The turbulence was in philosophy rather than in economy.                                                                                              
                                                                                                                                                      
But in today's economic 'turbulence, we should be well advised                                                                                        
not to lose our humanity, our great philosophic and cultural                                                                                          
traditions and whatever is left of our shrinking spirituality.                                                                                        
                                                                                                                                                      
                                                                                                                                                      
I see the evolution of organisations in Malaysia. The young                                                                                           
organisation tends to be guided by the science of management,                                                                                         
looking for salvation in healthy numbers, rates of return and                                                                                         
short term gains.                                                                                                                                     
                                                                                                                                                      
These are the organisations that will invest in courses like                                                                                          
financial analysis and information technology.                                                                                                        
                                                                                                                                                      
As the organisation matures, other issues surface, such as                                                                                            
leadership, industrial relations and systems and processes,                                                                                           
and, for these organisations, courses like the BBBA and MBA                                                                                           
will gain favour.                                                                                                                                     
                                                                                                                                                      
But as the organisation further matures, maybe as one of the                                                                                          
leaders in the industry, the issue shifts from micro to macro                                                                                         
concerns.                                                                                                                                             
                                                                                                                                                      
By this time, tools and techniques are already part of the                                                                                            
armoury; systems and processes are in place. But they will                                                                                            
feel that something is still missing.                                                                                                                 
                                                                                                                                                      
I refer to the missing ingredient as the soul of the                                                                                                  
organisation. In the work that we do at MIM, our response has                                                                                         
been to suggest to these companies to work towards developing                                                                                         
a common culture based on values shared by the total                                                                                                  
workforce.                                                                                                                                            
                                                                                                                                                      
A common culture is enduring, beyond the tenancy of owners                                                                                            
employees and customers, and will be best positioned to                                                                                               
survive all external crises.                                                                                                                          
                                                                                                                                                      
It is what stamps the identity of the organization,                                                                                                   
distinguishing it from all others.                                                                                                                    
                                                                                                                                                      
The essence of corporate culture lies in its beliefs. Like                                                                                            
religion, its management and staff are obligated to behave in                                                                                         
defined, responsible ways.                                                                                                                            
                                                                                                                                                      
For example, we may be explicit that our organization does not                                                                                        
corrupt the flow of business undertakings, nor produce and                                                                                            
distribute shoddy products.                                                                                                                           
                                                                                                                                                      
The course of recent history has desensitized Asian societies                                                                                         
from its cultural roots and has turned many Asians into                                                                                               
economic men often devoid of soul.                                                                                                                    
                                                                                                                                                      
As we benefit from economic growth and material prosperity, we                                                                                        
have lost sight of the basic values that have made us socially                                                                                        
attractive.                                                                                                                                           
                                                                                                                                                      
From time immemorial, Asian civilisations have been built on                                                                                          
the strength of collectivism and community spirit.                                                                                                    
                                                                                                                                                      
Our Hindu, Confucian and Islamic roots reach out to the clan,                                                                                         
the village, the family and the under-privileged.                                                                                                     
                                                                                                                                                      
We can forgive the uneducated for transgressing our cultural                                                                                          
heritage, but there is very little to forgive and much to                                                                                             
condemn in the educated person for pursuing self- interest on                                                                                         
the backs of others, for ignorance can no longer be the excuse                                                                                        
as greed becomes the reason.                                                                                                                          
                                                                                                                                                      
We have witnessed maverick organizations the likes of                                                                                                 
Peregrine rising like shooting stars only to be dealt fate's                                                                                          
inevitable destiny of all shooting stars - transient glory.                                                                                           
                                                                                                                                                      
These organisations play by different rules, highly                                                                                                   
opportunistic, wheeling, dealing, politically-connected, but                                                                                          
lacking real customer value.                                                                                                                          
                                                                                                                                                      
With the winds of change, they can lose anchor and be blown                                                                                           
away just as easily.                                                                                                                                  
                                                                                                                                                      
There is a quiet revolution against these buccaneering                                                                                                
organisations. Well-known solid organisations, with a record                                                                                          
of prudent management and the strong belief in providing                                                                                              
exceptionally good customer service, believes there is more to                                                                                        
the purpose of an organisation than profit maximisation.                                                                                              
                                                                                                                                                      
Britain's Marks and Spencer and international accounting firm                                                                                         
Price Waterhouse Coopers, for example, are beginning to                                                                                               
compile a balance sheet of corporate conduct in addition to                                                                                           
the conventional financial statements of an organisation.                                                                                             
                                                                                                                                                      
The fantastic growth and development of the world over the                                                                                            
last 50 years is the consequence of good management.                                                                                                  
                                                                                                                                                      
And it will be upon this good management that the next 50                                                                                             
years will depend for continuing economic and social                                                                                                  
development.                                                                                                                                          
                                                                                                                                                      
But as we journey into the next century, the crucial question                                                                                         
is "quo vadis?" More material gains or more humanity?                                                                                       
                                                                                                                                                      
The choice and tradeoffs will be the greatest challenge to the                                                                                        
profession of management.                                                                                                                             
                                                                                                                                                      
It will be a challenge for the university in seeking the                                                                                              
balance; it will be a challenge to the organisation in                                                                                                
profiling the face it wants to project; it will be a challenge                                                                                        
for the country in ensuring a minimum quality of life for all                                                                                         
citizens.                                                                                                                                             
                                                                                                                                                      
It will also be a challenge for every individual to find the                                                                                          
path that will lead to both success and happiness.                                                                                                    
                                                                                                                                                      
The above is excerpted from Dr Tarcisius Chin's acceptance                                                                                            
speech on being conferred an Honorary Doctor of Business by                                                                                           
RMIT University on Jan 30, 1999.                                                                                                                      
 

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