Category: Leadership

tech partnerships

Partnering Well: Getting The Most From Technology Experts

Posted on | by root

By Matt Parker, CEO of Babble

Even before COVID-19, many organisations faced considerable IT challenges. Now, COVID-19 is rapidly pushing companies to operate in new ways and IT is being tested as never before. As businesses juggle a range of new systems, priorities and challenges, including business continuity risks, sudden changes in volume, real-time decision-making, workforce productivity, security and customer satisfaction, leaders must act quickly to address immediate systems resilience issues and lay a foundation for the future. If leaders wait until the other side of the pandemic before applying lessons learnt from the experience so far, it will be too late. Long-term strategies for greater resilience need to be determined now; for many, strong technology partnerships will be critical to this.

Here at Babble, we’ve recently been announced as the Five9 EMEA Reseller of the Year for the second consecutive year, so you could say we know a thing or two about successful partnerships. Our relentless strive to build long-term relationships with clients and implement services that guarantee business continuity and eliminate the hassle and expense of traditional on-premise contact centre software, has in turn benefitted our relationship with Five9, driving record European sales for the business.

So, what’s the key to building successful long-term partnerships?

  1. Seek seamless integration: Firstly, if you lack the skills or resources in-house to deliver business-critical technology solutions, you must look to a partner that can seamlessly integrate into your business – and quickly. But always remember, the best technology partnerships are those that are worth more than the sum of their parts, and these relationships must be mutually beneficial.
  1. Look beyond the costs: Cloud technology negates the need for bulky upfront costs, which can boost digital transformation, especially where financing is an issue. However, leaders should not focus on the partnership costs alone. Businesses must carefully consider the supplementary support they need and will receive when it comes to innovation, digital transformation and engineering. It is crucial that decision makers understand this at the outset to ensure they don’t enter into partnerships that are ultimately disappointing, and short term.
  1. Leverage expertise: Business leaders must be prepared to put the innovation and investments being made by cloud and technology experts to good use. Most businesses will choose to work with at least one technology provider as they look to leverage their deep expertise and numerous cloud services, and getting the most out of them is about committing to a partnership. Don’t think about the short-term – you should be committing to a relationship that allows you to leverage expertise for years into future.
  1. Remember the basics – check product functionality/offering: Don’t lose sight of what you require the partner for and ensure that the products the chosen partner can deliver align with and provide the functionality that your end users require.
  1. Nurture relationships Don’t forget that technology partnerships are no different to any other relationship. The best partnerships are built on a long-term basis, so while it is critical that a strong working relationship exists from the outset, this is not the only consideration. The relationship needs nurturing. Communication is fundamental – and with a global workforce that is now more technologically agile and available than ever before – there really is no excuse.
women ceo

Women Taking a Stand to Move Up Managerial Chain

Posted on | by root

In September 2020, Citigroup bank appointed a female CEO. Why is this big news? Because in doing so, the firm became the first big Wall Street bank to do so. Barriers are being broken down by female trailblazers in all walks of society and even traditionally masculine environments are being transformed into more balanced ones where everyone, regardless of their gender, has an equal chance at success.

Gender pay disparities have been a long-time concern, but as female empowerment inspires a generation, who are the people that are shaping the businesses of the future? Here we delve into three areas of society that women are transforming – the boardroom, sport, and social media.

The boardroom

Historically, the boardroom has been a man’s playground. The imbalance between men and women in higher-paid jobs brings the issue into focus when you consider that only five CEOs in FTSE 100 groups are female. Less than one in three FTSE 100 board members are women. Between the FTSE 100 in the UK and S&P 500 in the USA, only 30 CEOs are women. According to the Conversation, one of the reasons for this is that the attributes of a leader – such as dominance, aggression, and ambition – are usually stereotyped as attributes of men and not women. Worse yet, for a woman that does display dominance, aggression, and ambition, she is often unfairly dismissed as being bossy, hysterical, and idealistic instead.

The disparity between men and women in business was noted by the government, and in 2016 it launched the Hampton-Alexander review, which resulted in recommendations for FTSE 350 companies to improve the representation of women on the boards and in leadership positions.

Four years on and female CEOs on the FTSE 100 are making history. One of the current female CEOs is Liv Garfield, who runs Severn Trent. She had been a CEO of a company before, and at 44 she is the youngest CEO on the FTSE 100. Another of those five women is Carolyn McCall, the CEO of ITV. When she was appointed in 2018, she was the first female CEO the group had ever had.

In 2020 the UK placed 21st on the Global Gender Gap Index, which is quite near the top, showing that the UK isn’t the best but is making positive steps. For comparison, the USA placed 58th and Ireland placed 7th, showing that there is still work to be done in the UK in order to follow Ireland’s example.

Williams’ serving up an ace

The field of play is not somewhere that has always sent the right messages for women. Over the last 15 years though, athletics tracks, tennis courts, and football pitches have become the arenas for women to own the conversation. While FIFA Women’s World Cup winner Megan Rapinoe made the headlines for her Twitter exchanges with US President Donald Trump, it is the tennis stars of Billie-Jean King and Williams sisters Venus and Serena that helped to lay the foundations for our stars of tomorrow.

A self-proclaimed women’s rights activist, King founded the Women’s Tennis Association in 1971 and paved the way for Venus and Serena to pick up the mantle. And with 30 Grand Slam singles titles to their names, the duo have carried the torch since. Both women have become role models, not only for their tennis skills, but also in management.

Although Venus is not quite ready to discard her trainers and racket just yet, her fashion-forward activewear range, EleVen, goes from strength to strength. Serena is as equally adept off the court as she is on it, with a venture capital firm and direct-to-consumer fashion brand among her business portfolios.

Breaking from tradition

Every generation breeds a new talent pool and new methods of entrepreneurialism are opening up avenues to success that previous generations could not tap into. The rise of social media and its business opportunities is allowing teens to break from tradition and become societal influencers. What may have started out as a few selfies among friends has quickly become a winning formula for monetary gain.

There’s money to be made on social media, and lots of it. Teenager Olivia Evi Plant has thousands of followers on Instagram and recently revealed that she earned AUS$30,000 in one year while still attending school. Snapping up and promoting free hair and beauty products, she has put the groundwork in for a winning business model.

One TikTok star has taken her exploits from the video streaming app to the big screen. Addison Rae Easterling has clocked up 60 million followers and according to Forbes Magazine, has amassed US$5 million through various endorsements during the last 12 months. Such has been Easterling’s success that she has now been cast for a remake of 1999 teen comedy She’s All That.

The future

There is light in the future and addressing the unfair gender imbalance across UK business is on the British Government’s radar. In 2019 the government stated that half of all FTSE 100 executive-level appointments in the next year must be women in order to achieve a target of 33 per cent for all female representation across boards in the index. This goal was met in February.

Whether we look at sport, business, or digital channels, it’s clear that women are rising to the top and setting the standard for the women of tomorrow. A change is coming. The future projections look positive and the only way is up.

director

Discharging Directors’ Duties In A Pandemic World

Posted on | by root

James Whitaker, Partner, international law firm Mayer Brown

Directors of all companies, large and small, public and private, owe duties to their companies; those duties should be front and centre in mind whenever decisions and actions are taken.  Understanding the duties, and discharging them satisfactorily, is crucial, not only for the success of the company, but also in order to avoid potential exposures to litigation and regulatory penalties.  The importance of doing so is all the more acute in times of economic stress, when the business may be encountering difficulties; decisions and actions taken by the business – often at speed and in response to rapidly-evolving circumstances – are being, and will be, pored over, and often challenged, to a significantly enhanced degree. 

As we enter into the next phase of COVID-induced restrictions and consequent hardships for many businesses across multiple sectors, and company directors increasingly face the risk of criticism for the adequacy of their performance, we take a look at the position directors find themselves in as the pandemic continues to impact businesses. 

The duties owed

Directors owe a range of duties to their companies which are designed, in essence, to ensure that individuals, whether acting in an executive or non-executive capacity, and whether formally appointed as a director or merely acting in a manner akin to that of a director, promote the interests of the company they serve above all else.  Arguably the most significant – and certainly the widest in scope – is the duty to act in such a way that the director considers, in good faith, will promote the success of the company for the benefit of the members as a whole, found in section 172 of the Companies Act 2006. 

In order to discharge the section 172, and other, statutory general duties, directors must have regard to a broad range of factors, which will go beyond simply maximising shareholder value; the central theme is promoting and embedding the right culture.  Key considerations that need to be borne in mind by all persons acting in the capacity of a director will include, by way of example:

  1. The standards of business conduct that prevail within the company, including its treatment of employees, customers and business partners;
  2. The impact of the business on the community in which it operates; and
  3. The solvency of the company and its ability properly to continue to trade. 

When a company becomes, or is likely to become, insolvent, directors will owe additional – paramount – duties to act in the best interests of the company’s creditors as a whole. 

Increasing exposures

For some years now, company directors have been operating against a backdrop of increasing litigation and regulatory exposure, amidst the trend of recent years towards greater individual accountability for corporate decisions and actions, as well as a growing focus on ethical boardroom conduct.  It is already apparent that these trends are being turbo-charged by the pandemic, both as a result of direct COVID-related actions, and also more generally of the challenging economic environment. 

Because directors owe duties to the company itself, any breach of such duties will give rise to a cause of action that vests in the injured party, namely, the company itself.  Shareholders may, in certain circumstances, be able to pursue the company’s directors, if and when values of companies’ stock fall significantly; we may see increased shareholder activity targeting directors and officers in the months and years ahead.  In addition to private claims for compensation in respect of breaches of duty, the courts have wide-ranging powers to disqualify individuals from acting as directors, or from otherwise becoming directly or indirectly involved in company management. 

The ability to pursue claims against directors – including post-insolvency claims – is growing as a result of the increased availability of specialist litigation funding, and increased awareness of the likelihood that D&O insurance may pay out at the end of successful claims.  Stakeholders are increasingly able to pursue claims that may previously have been unviable as they look to mitigate losses incurred as a result of the current strained economic environment. 

The onset of COVID-19, the rapid developments since that time, and the accompanying economic strains, have given rise to a host of potential new risks and exposures for directors.  The business challenges, and economic strains, arising from the pandemic are many; unfortunately, one of the likely impacts is extremely close scrutiny of decisions, and actions, particularly in the context of dealing with the pandemic.  In particular, we are already starting to see – even if not directly related to COVID – an increase in putative claims arising from:

  1. Financial and other reporting, both pre- and post-COVID, including as to how well the business was prepared for, and/or reacted to, the pandemic;
  2. The payment, or non-payment, of dividends, in circumstances where cash conservation is vital;
  3. Creditor-related actions, as well as difficulties arising from the giving of personal guarantees to support company borrowing;
  4. Data protection and cyber security, particularly as opportunistic criminals take advantage of shortcomings in businesses’ security arrangements in the context of remote working;
  5. Human resource-related issues, including how any redundancies were dealt with;
  6. Relatedly, Health and safety issues, and modern slavery issues throughout the supply- and value-chains;
  7. Competition infringements and/or abuses, again incentivised by a challenging economic environment, and a perception of regulatory leniency;
  8. Bribery, corruption and fraud, often incentivised by the economic hardships businesses confront; and, crucially
  9. Solvency- (or insolvency-) related claims. 

The way forward

The challenge facing many businesses as a result of the pandemic are severe and, sometimes, existential.  Those responsible for leading the business will, rightly, be focused on ensuring, to the extent possible, the survival of the companies they run.  It becomes more important than ever, though, that duties and obligations are observed meticulously in these difficult times, and the potential exposures, not only of the business, but of the individual directors themselves, are kept in mind.  Directors would be well-advised to observe the following precautionary measures:

  1. Ensure all directors and senior officers are well-versed in their obligations; and that they have sufficient information, and training;
  2. Ensure sufficient, transparent, and ongoing engagement with all stakeholders, including employees, suppliers, creditors and funders, to ensure their interests are considered;
  3. Ensure that risk management, compliance, security and contingency procedures and protocols (including litigation strategies) are in place, and are reviewed regularly.
  4. Have regard to the interests of, and potential impact on, all stakeholders in the business when making both short- and long-term decisions,
  5. Thoroughly document decision-making processes and the reasons underlying key decisions (as well as any disagreements that arise); keep in mind that all decisions and actions may subsequently be scrutinised with the benefit of hindsight; and
  6. Ensure that appropriate professional advice is obtained where necessary, in order that decisions and actions are taken in a properly informed manner. 

This article does not provide legal advice.  If you have any questions on this article, or would like to discuss the issues discussed, please contact James Whitaker at Mayer Brown. 

cashu

CEO Cashing In Success at CASHU

Posted on | by root

Leading any company can come with challenges, but leading the first and largest fintech company in the MENA region can prove to more than challenging. For Mr Thaer Suleiman, fulfilling that role as CEO of CASHU may have proven to have its challenges, but has also been infinitely rewarding. As we find out why he is this years’ recipient of the CEO of the Year award, we also examine the work of CASHU as a visionary firm.

Since its formation in 2002, CASHU has proven itself to be one of the largest and best fintech companies in the MENA region, providing e-wallet services to clients all over the area. However, the last five years have seen the firm pivot after announcing its vision to take part in the transformation and digitization that is due in the MENA region. Where once it sought to be the first fintech company providing e-wallet services, now CASHU is focused on being the best by creating a cashless society through its innovative and revolutionary services. For the last five years, it has led the regional financial inclusion towards a cashless lifestyle, enabling people to transact safely and securely through digitalized currency. It has done this whilst taking into consideration that the vast majority of the region’s population are un-banked and totally reliant on cash.

Currently providing a bouquet of financial services that are very important to users all over the MENA region, CASHU has helped to make sure that the like of peer-to-peer transfers, prepaid Mastercards, bill payments and more are no longer just a luxury, but a necessity. Not limited to a certain jurisdiction, CASHU crosses borders like no other financial technology solution on a truly regional and global scale alike. It invites users to complete transactions from the comfort of their mobile phone wherever they are in the MENA region, and further beyond. These users can take many different forms, but the firm is primarily targeting what the industry calls the “unbanked” population; those individuals who do not have bank accounts or do not qualify to bank standards to open an account.

With approximately 86% of the population in the MENA region being unbanked, there is a wealth of opportunity for CASHU to tap into. This major segment of the population has been historically neglected by the banking sector as a result of their unstable and micro incomes and business sizes, compared to the cost of operating their accounts. However, CASHU sees past those issues, and endeavours to ensure that everyone has access to exceptional financial services and cashless banking options.

CASHU’s mission responds to the vision practically, as it lives out the belief that ultimate mobilization is what is needed to move towards the realization of the vision. Not only will the realization of this vision help CASHU to provide simple, safe, and innovative mobilized solutions to help consumers manage their day-to-day payment needs, but it will also act a benchmark for other fintech firms in the area wanting to achieve the same success. However, none of this would be possible without a CEO that understands and invests fully into that mission and that vision that CASHU has. That is what Mr Thaer M. Suleiman brings to his role as CEO of CASHU.

Having previously served as general manager at CASHU, and Director of Strategy and Development at Payfort, Mr Suleiman brings more than two decades of business, marketing, and sales experience to the CASHU team. Coupled with his Master of Business Administration (MBA) from the University of Northampton, Mr Suleiman is a truly exceptional leader.

Following his successful launch and subsequent departure from eCommerce., Mr Suleiman then went on to join the FinTech leader CASHU in 2010 as Director of Strategy and Business Development. During this time, he refined and honed his leadership skills before eventually rising through the ranks to become CEO in January 2016. In this new position, Mr Suleiman has been responsible for driving forward the company’s strategic planning, business, and product development in fintech, as well as the development of CASHU’s online payment and mobile payment platforms. It is under Mr Suleiman’s leadership that CASHU has made the pivot to focus on a cashless society that is easier for everyone in the MENA region to be a part of.

Mr Suleiman has been responsible for not just creating an exceptional range of financial services that are accessible to so many individuals, but also a culture that ranks amongst the top cultures in the MENA region. CASHU has fostered a reputation for itself as a futuristic and optimistic company that has survived by learning to be fast and nimble. In this sense it embodies so many of the characteristics that its clients display also, with that start-up DNA and resilience playing key roles as core values in the business today. Additionally, he is also understands one of the most crucial aspects to leadership; surrounding himself with the best people who can support him and the work of CASHU.

The firm is home to a diverse group of some of the brightest minds working in the fintech sector across the MENA region today. Having grown and learned their trade from working tirelessly at CASHU, staff are given the opportunity to climb the ladder of success and be amongst the most knowledgeable individuals in the industry. The leadership team offers staff the opportunity to grow and learn all the time, and is proud that many talents leading fintech initiatives across the MENA region began their journeys from CASHU. Perhaps one of the most crucial aspects to Mr Suleiman’s use of his position is that he enables his leadership team to always do more. The firm’s leaders are working from multiple offices in the region, with each member of the management team empowered to act as the CEO of his or her domain, enabling unprecedented levels of cross-departmental collaboration.

Ever since its beginning, right up to the present day, CASHU has aimed to stay one step ahead of everyone else. Having a visionary approach to creating a cashless future has often meant that competitors and clients alike struggle to keep up with the speed of innovation that CASHU displays, but the desire to meet the ever-evolving needs of the MENA people keeps everyone going. Throughout the years, CASHU leadership has instilled a passion in their workforce, ensuring that every member of staff is resolutely focused on continuing the exceptional growth that has come thus far. Fintech is the foundation of the future, and building that foundation in the MENA region requires patience and stamina.

Perhaps most importantly however, is that the financial inclusion and digital transformation that CASHU and Mr Suleiman have brought about would not be possible without the support and cooperation of all the influencing parties of every country in the MENA region. From the innovators and entrepreneurs, to the governments and regulators, and the financial institutions themselves, everyone has had a role to play in the genius products that have come about because of CASHU and its team’s innovation. To those yet to invest or take a leap of faith in the MENA region’s fintech industry, CASHU leadership have proven beyond a doubt that now is the perfect time to be a part of something exciting and extraordinary.

intellect

Banking on a Brilliant CEO

Posted on | by root

What goes into making the winner of this years’ CEO of the Year? As we take a deep dive into the recipient of this title, Manish Maakan, we also examine the man’s passion, humility, integrity, respect, and fun; five key attributes that have defined him, but also his work at Intellect Design Arena and iGTB. Today, we find out what makes Manish such an exceptional leader, even in the strangeness of the times that COVID-19 has brought about.

Manish Maakan is the CEO of iGTB, which is the global transaction banking division of Intellect Design Arena Ltd, and he has occupied this role since it first became available in May 2013. During the last seven years, Manish has poured his passion into building an outstanding array of award-winning products that are developed and delivered by high-performing and innovative teams that want to enable Manish’s vision of contextual banking. Now, seven years on from his initial acceptance of the role of CEO at iGTB, Manish has made the firm into one of the most preferred partners for banks when it comes to digital transaction banking transformation programs across the globe. To put into context just how exceptional a job Manish has done, iGTB is currently trusted by 88 of the best global corporate banks across 55 countries, and is rated #1 in different categories by 12 analysts, and is also #1 in Wholesale Banking Transaction Banking by IBS.

However, Manish’s career and journey towards leadership excellence began long before his role at iGTB and Intellect Design Arena. His impressive career spans nearly three decades, and in every role he has served, Manish has exemplified diligence, dedication, and determination. Across each role, he brings a differentiated design-thinking approach to innovation, growth, and complexity reduction in business. Manish has previously served in key leadership roles, leading transformation wherever he goes with his softly spoken nature, and unparalleled ability to reframe problems, expand team’s thinking, and keep the focus on achieving ambitious goals.

In some of his previous roles, Manish has led transformation as the CIO at GE Money, set up the Technology Centre for Whirlpool’s India business, and acted as a management consultant at E&Y. He has also built financial solutions for EMI Records, building on his earlier experience working as a technologist at IBM and several other IT companies in the United States. Those experiences have prepared Manish expertly for his role as CEO with iGTB as part of Intellect Design Arena. Armed with these experiences, and the values of passion, humility, integrity, respect, and fun, Manish is ready for anything that may come his way,  or the way of the firm. When good things happen, he celebrates. When things do not work out as planned, he is the first to ask what could have happened differently.

A key element to Manish’s approach to leadership is his conviction. In anything, Manish believes in what he does, and that belief enables his various teams to act in a way where they can deliver the best possible service. The creation of iGTB itself was a bold step, even against the advice of some consultants, to create a product-focused, IP-focused business from what had been a services business. It became the first Fintech to move a real blockchain payment, and then showcased a new contextual approach to corporate banking. Manish has always been devoted to his work, and the contextual approach to corporate banking was about acting on that conviction.

iGTB is about helping the whole customer journey, rather than simply providing automation and access to bank resources. It introduces concepts like the systems suggesting the best next step to the client, and it also pioneered cross-selling and up-selling directly through the front end, which is common now in consumer banking but unheard of in transaction banking.

One of the other aspects to Manish’s leadership that truly makes him stand out in the CEO space is his ability to recruit only the best members of staff to be around him. A prime example of this can be seen in a key member of the executive team who has become a board member of the parent company. Once upon a time, that individual was a hugely demanding client who was complaining to Manish. Within a year, that individual was recruited by Manish, and now brings a special perspective to the team that no-one else can. Manish is incredibly proud that all of his team have skills that he does not, and his staff remain his top priority.

The desire for staff to outperform themselves is driven by empowerment and inspiration that comes from the top down, but also from the challenges that the firm is presented with. Creating a trusted brand from scratch is a challenge, especially one that moves high value payments around the world, and where clients are highly regulated in an industry that means any systems failures cause newsworthy reports and high fines. Transitioning the mindset of his staff away from providing an unthinking service to offering what the bank really needs, and leveraging existing IP took a substantial effort from Manish and his team. Of course, the effects from the COVID-19 pandemic continue to permeate business and make the existing challenges even greater.

However, moving all four thousand Intellect staff to a work-from-home scenario in just a matter of days with increases in productivity in some areas, is testament to the incredible team, but also to the culture created at Manish. The culture feeds the mission, and everyone benefits from that. Manish and his team are bringing consumerisation to commercial banking, with instant completion, anticipation of needs, frictionless action, reliable execution, and a pleasant feel to what has not always been the most glamorous of industries. Trust is a huge element in banking, and that is the cornerstone of what Manish has been able to accomplish. He has overseen the establishment of a brand new form of commercial banking, and already built a hugely trustworthy reputation for it.

Behind Manish’s gentle temperament and soft spoken nature is a wealth of ambition and drive to help clients with even their most complex of issues. Currently, businesses all over the world are spending scarce amounts of time, cost, and effort to address modern issues with incumbent old systems. Manish Maakan has demonstrated perfectly his ability to lead people and clients in dealing with these issues, and so much more. He is the epitome of an exceptional leader, and one whom can always be considered an outstanding businessman, and a fantastic human being.

cana

A Wellness Success Story

Posted on | by root

As consumer demand for CBD and cannabinoids continues to grow, a new industry has sprung up, ready to meet the needs of the market. For the team at Canavation Product Group Inc., Bill Barlow has been an inspiring figure who has allowed them to reach their full potential. Named CEO of the Year, 2020 – the USA, we caught up with Mr Barlow to see how his firm had achieved such success.

Canavation was founded with the aim of improving people’s lives. The team have spent years developing wellness products that leverages natural, exclusive and rare ingredients, particularly cannabinoids which demonstrate significant wellness benefits.

Under Mr Barlow’s leadership, Canavation has gone from strength to strength, ensuring that every product is of the highest quality and guaranteed to deliver its promise to the customer. Naturally, a great deal of focus has been placed on the role of cannabinoids, given their specific properties. It is one of the factors which makes Canavation unique.

Of course, the firm has found doors opening because of its ability to provide clients with ingredients that no one else can provide. Canavation has achieved success with contract manufacturing and joint venture partners to create truly unique products, updating existing formulas creating products that are brand new. As ever, this unique development skillset of Canavation is what keeps the firm in such demand.

An example of this unique skillset can be seen in the firm’s securing of the worldwide rights to sell rare cannabinoids produced by biotech leader Teewinot Life Sciences for use in any consumer product application. Their technology is expected to go online by the end of 2021, producing a host of cannabinoid molecules that very few will be able to produce at commercial scale, pharmaceutical quality or such low cost. The value to both Canavation and the consumer are tremendous, and shows how it is ready to face the future.

Because of their focus on delivering wellness products, when the world went into quarantine, the people of Canavation continued coming into work. Mr Barlow ensured that working protocols were implemented that allowed sufficient social distancing and workspace. More than anything else, this shows how committed his team were to deliver products that improve an individual’s life, and what a strong work culture he has been able to foster amongst his employees.

Looking ahead, Mr Barlow intends to take Canavation international, using a good footing in the US as a springboard for other regions. The benefits of good health and wellness are universal, and this means that there are many markets who will have demand for their services.

over confident ceo

Toxic Confidence: Overconfident CEOs Are Less Likely to Learn from Performance Feedback

Posted on | by root

Overconfident, often male, CEOs are reacting much less to both internal and external feedback, particularly negative assessments, and thus are more likely to lead their businesses to failure, finds new research from Vienna University of Economics and Business (WU Vienna).

Companies often evaluate the success of their current business strategy through feedback in the form of their firm’s current financial results relative to their own previous performance or that of other market participants in the same industry and adapt their decisions accordingly.

A recently published study by Christian Schumacher from WU Vienna in collaboration with Steffen Keck and Wenjie Tang from the University of Vienna shows that the personality of CEOs plays an important role in these evaluation processes. Exaggerated self-confidence can stand in the way of rational decisions.

According to the research, overconfident CEOs assess the financial situation of their company more optimistically than their colleagues and react much weaker to external and internal feedback. That can stand in the way of rational decisions, the WU researchers report in the Strategic Management Journal.

“That means: Although the financial situation in the company is possibly very bad and would require a change in the company’s strategy, these CEOs interpret the precarious situation much more positively and only react with a change when it might already be too late – which can of course have devastating consequences for the company”, says Schumacher.

In their quantitative study, the study authors examined all companies in the S & P1500 Index, which includes the 1,500 largest American listed companies, in the period from 1992 to 2014.

The study also revealed that female CEOs were less likely to have an overly confident view of both their company’s financial situation, and their own abilities.

Christian Schumacher, Assistant Professor in the Department of Global Business and Trade at Vienna University of Economics and Business, says: “Women are less often overconfident about their own abilities, which is also reflected in our study. This more accurate assessment means that female CEOS are much more sensitive to different types of feedback about their companies’ current business strategy.”

director

Directors’ duties in the age of COVID-19

Posted on | by root

By James Whitaker, Sheena Frazer and Mayer Brown

Throughout the COVID-19 pandemic, directors of companies across all industry sectors, ranging from small family enterprises to large multinationals, have been working flat out to keep businesses afloat. But as life begins to return to a semblance of normality, what risks will those directors face themselves during the challenging months ahead?

As with most things, awareness is key, and the best protection for those managing businesses is to be aware of their legal obligations and risks.

 

The obligations of directors

All directors, including executive and non-executive, de jure and de facto, nominee, and in certain circumstances, shadow, directors, owe duties to their companies, meaning that the director must put the interests of the company ahead of his or her own. Whether or not an individual is a “director” will depend on the specific circumstances of his or her role.

Possible complications can arise where individuals hold multiple-directorships (particularly of companies within the same group). Where the companies’ interests are ordinarily aligned, the roles can, and often do, become blurred; while the interests of the group should of course be considered, the duties owed to each company must be observed.

The main duties owed by company directors, long-present at common law, are codified in the Companies Act 2006.

Perhaps the most significant duty is the duty to promote the success of the company, which requires the director to act in the way in which he or she believes, in good faith, to be in the interests of the company. In discharging the duty, directors are required to bear in mind the interests of various stakeholders, including shareholders, creditors, employees, and the community in which the company operates. Managing a business with the single aim of maximising shareholder value is, increasingly, insufficient.

The general duties described above will continue to apply to directors of companies which experience financial distress or become insolvent, The onset of insolvency introduces a further layer of duties and risks for directors. Temporary modifications relating to wrongful training introduced as a result of Covid-19 is a welcome development, but it will not absolve directors from their various duties.

When a company becomes, or is likely to become, insolvent, directors will owe additional – paramount – duties to act in the best interests of the company’s creditors as a whole.

 

Who can bring claims against directors?

The duties owed by directors are owed to the company, and any cause of action arising from a breach of those duties vests in the company itself. Shareholders of the company may also, in certain circumstances, be able to pursue the company’s directors. If and when values of companies’ stock fall significantly, a shareholder derivative actions may become more prevalent as a means by which aggrieved investors seek redress. Further, shareholders of public companies are able to bring claims directly against directors in respect of statements and actions which have, allegedly, caused loss to the shareholders.

When a company is in a formal insolvency procedure, an appointed insolvency officeholder can also bring claims against directors relating to transactions entered into prior to the Insolvency Act 1986.

In addition to private claims for compensation in respect of breaches of duty, the courts have wide-ranging powers – both in the criminal and the civil contexts – to disqualify individuals from acting as directors, or from otherwise becoming directly or indirectly involved in company management, for a period of up to 15 years.

 

Risk factors arising out of COVID-19

The onset of COVID-19, and the accompanying economic strains, arrived against a backdrop of already-increasing litigation, and the trend of recent years towards greater individual accountability for corporate decisions and actions, with increasing calls for ethical boardroom conduct. The legal bases of individual liability for directors are wider than ever before, and include such areas as financial reporting, bribery, corruption and fraud, data protection, cyber security, competition infringements, health and safety, environmental factors, and modern slavery. Both anecdotal and survey evidence indicates a marked increase in recent experience of claims and/or regulatory investigations specifically involving individual directors, including criminal claims against directors. Further, the ability to pursue post-insolvency claims against directors is growing as a result of the increased availability of specialist insolvency litigation funding, coupled with the incentive of D&O insurance which may provide a pot of gold at the end of successful claims.

The result of these dynamics is that the all stakeholders, are increasingly able to pursue claims that may previously have been unviable. As stakeholders look to mitigate losses incurred as a result of the strained economic environment, we find ourselves in, those responsible for managing businesses will be scrutinised to a greater extent than usual.

The business challenges, and economic strains, arising from the pandemic are many; unfortunately, one of the likely impacts is extremely close scrutiny of decisions, and actions, particularly in the context of (i) dealing with the pandemic; (ii) ensuring continued solvency; (ii) maintaining shareholder value whilst protecting other stakeholders’ interests; (iii) data and cyber breaches; (iv) fraud risks; and (iv) competition / anti-trust issues, to name a few.

 

How might risks be mitigated?

Whilst the challenges faced by businesses – and their directors – will often be unique to the particular circumstances prevailing, there are a number of practical steps which may assist in mitigating risk factors more generally.

 

Planning ahead

Directors should ensure that their business have engaged, and continue to engage, with all stakeholders, including suppliers and funders, to ensure their interests are considered. Risk management, compliance, security and contingency procedures and protocols (including litigation strategies) should be prepared and reviewed regularly.

 

Decision making

Again, the importance of having regard to all stakeholders in the business when making both short- and long-term decisions, and considering the potential impacts of those decisions, as well as thoroughly documenting decision-making processes and the reasons underlying key decisions (as well as any disagreements that arise), cannot be overestimated. Should decisions and actions be scrutinised with the benefit of hindsight, these factors will be crucial.

 

Advice

Finally, directors should make sure they take appropriate professional advice where possible. Obviously, many companies expect to encounter cashflow difficulties in the coming months, and it may be difficult to justify additional expenditure. However, given the range and technical complexity of the risks faced by modern businesses, it is more crucial than ever for directors to ensure that they seek appropriate financial and legal advice, so as to protect the position of the company and to demonstrate that decisions have been taken in a properly informed manner.

These are difficult times to be a company director. However daunting the coming months may appear, there are steps which directors can take to mitigate the risks they will face. Fortunately, those steps – taking and acting upon appropriate advice, taking properly documented decisions and so on – are exactly the steps which directors of well-governed companies are used to taking on a daily basis.

This article does not provide legal advice. If you have any questions on this article, or would like to discuss the issues discussed, please contact James Whitaker or Sheena Frazer.

CEO

17 Percent of CEOs Are a Wrong Fit for Their Firm

Posted on | by root

17 percent of CEOs are unsuited to the companies they lead, reveals research from Imperial College Business School.

According to the study, which analysed the behaviour of 1,100 CEOs based on their daily schedules, CEO behaviour can be broken down into two categories: Leaders and Managers.

While managers focus on undertaking tasks and take a hands-on approach to their job, leaders prioritise high-level functions within an organisation.

The research revealed that CEOs whose behaviour constitutes that of a leader generally run companies that are more productive and profitable. The researchers found this to be the case by comparing the performance of firms before and after appointing a CEO whose leadership style was closely aligned to the organisation’s mission and values and discovered that appointing such a leader resulted in an increase in sales after hiring.

The study revealed that 17 percent of CEOs are ultimately not suited to their firm, largely thanks to the shortage of leader-type CEOs in the market, with the greatest difference in the supply and demand of this type of CEO in low- and middle- income countries.

According to the researchers, this poor distribution could account for up to 13 percent of cross-country differences in labour productivity.

Stephen Hansen, Associate Professor of Economics at Imperial College Business School and lead researcher for the study, says:

“The most important message is that there is no one-size-fits-all CEO. Modern machine learning methods applied to data on leadership can help identify CEO styles and how they match firm needs.”

ceos

3 Things You Need Before You Become a CEO

Posted on | by root

We all dream of the day when we can run our own business or be the boss that everyone looks up to. Aside from a board of directors, the CEO usually sits at the very top of the career ladder, making crucial decisions about the growth of the company, and earning the big money. If you want to be the kind of person who calls those kinds of shots, you’re not alone. The truth is that almost anyone can make their way to the top. All you need is the right attitude, plenty of drive, and an excellent set of skills. Today, we’re going to cover some of the main essentials you’ll need to master before you earn your position as CEO.

 

Your Education

You don’t necessarily need a specific degree in engineering to lead an engineering company, or an IT degree to head a tech brand. However, you do need plenty of knowledge that’s going to make you a better leader. An MBA is one of the most important qualifications that any business leader can have. Not only does it give you valuable skills for growth, but it also shows you how to reach your goals. Start by checking out the local MBA opportunities in your region. Examine a wide range of different college courses so you know which ones appeal most to you. Once you’ve picked a school, you can look into getting your student loan and pay for your tuition so you can start taking the course. Remember, there are options that allow you to learn in your free time these days.

 

A Good Network

As the head of a company, you’re going to need to know how to talk to people and generate valuable relationships. You can start to work on this from the moment that you decide you’re going to make your way to the top. In fact, networking with the right people could mean that you get your chance at a higher position a lot faster. Whenever you have an option to connect with someone in your team, whether it’s a CFO or a supervisor, make sure that you take it. Don’t forget to reach out to people in your industry whenever you can on social media too. In-person networking through events and conferences can be an excellent way to open yourself up to new relationships.

 

Leadership Experience

Finally, you don’t need to wait until you’re the leader of a big company before you can start developing experience in this role. Anything that allows you to take charge is a good idea. For instance, if your boss gives you an opportunity to take the lead on a new project or a difficult client, put your skills to the test and do it. Take the initiative whenever you can and go above and beyond to show that you can thrive when put under pressure. Even volunteering for things that your passionate about can open you up to new opportunities for growth. Take charge as often as you can and look for ways to become better at leading a team.

data

Department Heads Can Extend Influence with the Power of Data

Posted on | by root

By Sylvain Magdinier, Vice President in the Corporate and Commercial Services group at the UnitedLex Corporation

In the digital age, data is power, and in the executive push to harness meaningful data in corporate decision-making, CEOs are seeking opportunity across the enterprise. CEOs know harnessing the power of data yields proven insights and actionable content that translates to measurable ROI. Lawyers in corporate legal departments also know, more than most, about the power of information. But how can data ultimately help lawyers add additional value?

Resource allocation

One of the primary roles of the legal team is to protect the company from disputes. Most commercial lawyers will tell you that litigation revolves around one or more of the following:

– Overpromising what will be delivered;
– Underdelivering against what was promised;
– Overly complex contracts that lead to gaps in expectation;
– Customers departing from what the contract envisaged, without the proper change management; and
– Lack of teamwork between contracting parties once a contract requires revision

What is clearly missing from this list are the main contract terms and conditions. Not only is it rare for main provisions to be the subject of litigation, but also relatively unusual for them to be invoked in a dispute.

So why is so much time devoted to negotiating these fairly standard provisions, with much less time spent aligning parties on what will be delivered both before and after contract signature? One critical reason is the lack of available data that links time—seemingly endless human hours spent reviewing and negotiating contracts—with the corresponding impact on corporate risk. And even when such data becomes available, established norms can be difficult to overcome. Corporate legal teams often operate on precedent, with long-established processes to manage time and allocate resources.

What if a General Counsel could be empowered with new data in the context of the legal department to further reduce risk, to spend less time discussing liability caps for example, and more time engaging with the business to ensure terms are implemented as promised?

Up until recently, the legal profession has had limited opportunity to exploit the power of data in its contribution to the business. Legal departments or functions that “become digital” harness meaningful, objective data to inform decision-making, with a view towards driving concrete business outcomes, rather than simply relying on conventional practice. This digital transformation offers the potential to reimagine how the legal function operates.

Contract Intelligence

Negotiating and aligning contract provisions with internal policies is a time-consuming and arduous aspect of the contracting process. And with the diversity of contract forms needing review, lack of standardisation can increase the odds of inconsistent handling of commercial risk.

This may sound like a familiar scenario: A business development team has landed a great new opportunity with a key customer, and it is time sensitive. The sales lead knows there is a proliferation of legacy contracts with the customer. The company’s in-house legal adviser cannot readily identify all contracts in place with the customer. With the amendment of several contracts over the years, and the absence of an intelligent analytics tool, the pathway to contract execution is labour intensive.

As the legal team looks to identify a starting point for the contract, the customer wants to revisit the contract on new terms. The contract is not only a departure from the last agreement but differs from any known, standard company contract. The legal team works to align client and customer requirements, but the continued delay puts the sales opportunity in jeopardy. Days and weeks are spent escalating the customer’s demands until management grants special approval rather than risk losing the business.

This scenario is far too common for businesses both large and small. Deploying an intelligent, fully-digitised contract repository with search and analytics capabilities allows for portfolio-wide insights on contracting activity—insights that positively drive revenue, cashflow, and margin. By reducing workload and accelerating transaction times, the legal team can become more responsive while maintaining key corporate risk standards. One recent example: A Fortune 500 global technology organisation, after deploying an intelligent repository to their contract review process, realised a 25 percent reduction in the time and cost associated with manual review.

As companies and legal departments continue to manage the above demands, it is incumbent for leaders to leverage advances in technology to find a new way forward.

SEO image

Top CEO in SEO

Posted on | by Kathryn Hall

Actor turned entrepreneur turned influential CEO, Joe Sernio has had a journey that many people would find extraordinary. For the last ten years, Mr Sernio has found himself at the head of one of the most exceptional firms offering a unique and optimized web and SEO strategy for businesses and franchises: Shoreline Media Marketing. As the company celebrates its tenth anniversary, we at CEO Monthly take the time to reflect on what makes Mr Sernio one of the finest CEOs in the SEO business this year.

As the world becomes increasingly digital, and reliant on
digital media to help engineer success for businesses and franchises
everywhere, the need for optimized websites and digital marketing content is
more prevalent than ever before. However, the need was perhaps not as great ten
years ago, when Shoreline Media Marketing was founded by actor-turned-
entrepreneur Joe Sernio. Mr Sernio displayed exceptional vision to see where
the world was heading and founded his company in 2010. He recognised that
businesses work hard to get where they are, and it was time that digital
marketing companies did the same for their clients. Thus, Shoreline Media
Marketing was born.

Now celebrating its tenth anniversary of being in business,
Shoreline Media Marketing creates online optimization plans based on each
business, and their unique structure. The ultimate goal of most businesses and
franchises in the world today is growth, and that can be achieved to
exceptional effect with the help of search engine optimization and strategies.
Over the least ten years, Shoreline Media Marketing has helped clients to grow
their online presence in ways that have proven to be hugely beneficial to the
business as a whole.

Mr Sernio’s insight and leadership has allowed Shoreline Media Marketing to position itself as one of the finest, industry-leading businesses working in digital marketing and search engine optimization strategies today. The tight-knit and knowledgeable team that Mr Sernio has surrounded himself with strive to customize plans for each individual client’s particular audience, no matter what size or sector the company in question is. It can be pretty confusing for a new business owner to grasp the complexity of everything involved in web optimization and search engine optimization. That is where the expertise from Shoreline Media Marketing comes in.

From paid digital marketing, such as Google Adwords and Bing
Ads, to social media and organic search engine optimization, there is no
shortage to the wisdom and knowledge that Mr Sernio and his team can impart
upon clients. A key part of the excellence that Shoreline Media Marketing
offers is that every employee understands how daunting the whole process can be
for those who are new to it. Mr Sernio has cultivated an atmosphere and an
ethos of quality over quantity. Everybody strives to build relationships over
partnerships. The company was built on a foundation of honesty, quality, and
trust, and it has never wavered from those principles.

Perhaps nowhere is there a clearer example of how
exceptionally well Mr Sernio has performed as CEO of Shoreline Media Marketing
than in the number of awards and top rankings the company has received over the
last five years. It has consistently been ranked amongst the top SEO agencies
in the country by UpCity and TopSEOs, and it has also won awards for being the
Best SEO Agency and Best Web Firm in 2016, 2017, and 2018.

Many businesses today will tell you that leads are vital to their business and the success of it. Whether those leads translate into actionable transactions, however, is where a great many organizations can struggle to stay afloat amongst the competition. Through careful brand management, exceptional digital marketing, and superb social media management, Shoreline Media Marketing can take those leads and transform them into something more. With proven and award-winning strategies, and an exceptional leader in the form of Mr Sernio, Shoreline Media Marketing has become a force to be reckoned with in an industry that is only going to grow more popular and necessary over time.