Industries Qatar is one of the largest integrated industrial holding companies in Qatar and the GCC market as well. M S M Al Sherawi, Chief Coordinator of IQ, who has been guiding the company through its success, talks about his role in the management of such a huge conglomerate.
Q How do you build team motivation/ improve morale of team players?
|a|As we all know, there are many approaches to building team motivation and improving the morale of the team players. The synergistic impact of team efforts is exponential and there can be no doubt on this fundamental corporate truth in any business environment.
As the adage goes, the result of team efforts is greater than the sum total of individual efforts. The key to success of any approach is to capitalise on the dynamics and circumstances of each situation.
I believe that team motivation can be built by first understanding the capabilities of the staff, setting reasonable but stretch targets to raise the bar and enhance their qualitative as well as quantitative outputs and thereafter encouraging them to achieve their full potential.
It is human nature to aspire to do one’s best if one believes that there would be rewards to commensurate with such efforts.
For proper motivation, sincere and creative attempts are constantly required to set up reasonable targets as well as monitor, measure, evaluate and reward good performance.
While it is important to reward excellent team performances, individual initiatives and efforts that add significant value to an organisation also need to be appropriately recognised and rewarded.
Based on my personal experience over the years, staff morale is one of the single biggest factors that differentiate excellent performers from the others.
Staff morale can be raised in various ways depending on the circumstances of each situation. On occasions, we lead by example. We also encourage the staff to participate in the identification of as well as get their buy-in for the team goals.
We urge our staff to believe in their capabilities and empower them to take decisions within the band width of their authority based on their business judgment and experience.
We also believe that morale can be raised by having clear and unambiguous channels of communication and by having a consistent approach towards the decision making process.
Mutual trust as well as mutual respect is both very important to unleash the full potential of every person in an organisation regardless of their hierarchical levels.
|q|To what level should authority be delegated?
|a|I believe that there has to be a proper balance between ‘Responsibility’ and ‘Authority’. The latter should be delegated to the extent it is required to get the job done effectively.
‘Responsibility’ and ‘Authority’ are like both sides of the same coin. Delegating either too much or too little ‘Authority’ will result in negative outcomes for the organisation.
As an example, by concentrating all the decision making powers at the top, there is a danger that proper business decisions cannot be taken on a timely basis leading to a sub-optimisation in the value to an organization.
On the other hand, by delegating too much ‘Authority’, way above the demands of the job’s ‘Responsibility’ leads to situations that encourages frauds and power abuse.
Too much power leads to corruption. One therefore has to carefully consider these important aspects whilst deciding on an appropriate balance between ‘Authority’ and ‘Responsibility’ for any position within an organisation.
The structure of IQ is a classic example of a good balance between ‘Authority’ and ‘Responsibility’. The subsidiary/joint ventures are independently managed by their respective management teams who are professionals in their respective field of business.
These management teams are considered to be the best placed to manage their respective company’s operational activities since they are ‘closer to action’ so to speak.
They have a fairly high degree of ‘Authority’ to effectively and efficiently manage the day to day operations and they are accountable for the ultimate results.
However, with regards to strategies as well as well as long term plans, we all (the relevant management team of the company, the IQ Board and myself) discuss and decide on these important matters taking into consideration the overall interests of IQ as well as the individual company.
|q|Where do you draw the line in discussions, while taking vital decisions?
|a|Before any decision is taken, I believe that it is very important to go through all the relevant facts of the case and also consider the opinion of others who have an input on such decisions.
Generally, in an ever changing business environment, all the facts that are ideally required for proper decision making are not always readily available, but nevertheless a decision has to be immediately made.
These kinds of situations test the decision making abilities of a good manager. One then, has to rely on experience, knowledge and business judgement to make the right decision under the circumstances.
Discussions are healthy to ensure that all view points are well considered and all options are well evaluated. But then, when it comes to decision making, a good manager has to step in, take the decision and take full responsibility for the same.
In this real world, all decisions that are taken are not necessarily the best ones on hind sight but it is very important to keep in perspective the circumstances and the information that was available during the time such decisions were taken.
We all constantly evolve and learn from our experiences and mistakes and this is something a good manager has to constantly keep in mind. A person who is afraid to make mistakes remains indecisive and adds no value.
A person that learns from mistakes is smart and a person who learns from others mistakes is even smarter!
My answer to this question is not complete unless I also bring into perspective the impact of human resources on an organisation’s decision making dynamics.
The most important asset of any organisation that is never found in balance sheets is its ‘human resources’.
If capable, qualified and experienced persons with the right attitude are employed by an organisation then most of the decision making challenges are well handled and half the battle is won!
|q|As a listed company, how do you view your responsibility to your shareholders? What would you tell them, especially given the recent market fluctuations?
|a|The responsibility towards our shareholders is something we take seriously and their interests are the beacon that guides and directs all our decisions.
Whilst analysing the recent market fluctuations, one needs to understand and appreciate that this is not something unique to us. It is also important to note that the same trend is also prevalent right across most of the regional markets too.
In a global economy, it is very difficult for any single market to override some of the fundamental trends that take shape.
Any changes in the interest rates, foreign exchange rates, employment data, inflation data or investor sentiments can significantly influence the flight of capital across countries and even regions quite swiftly.
Significant volumes of shares that are bought or sold can also compound the impact on its market prices. All these factors have to be kept in mind before making any investment decision.
On the positive side, thanks to the dynamic leadership of our country, we have been experiencing significant oil and gas revenues as well as budget surpluses.
Our GDP growth rate is also something that would make most countries in our region envy us. One has to look long term and not short-term when taking significant investment decisions.
A proper analysis of the fundamentals as well as the growth potential of individual companies is also important to ensure that proper investment decisions are taken.
Whilst analysing companies, one also has to look at the track record of the company as well as its directors/management.
Companies that believe in and adopt good corporate governance principles and practises will experience long term success and this is the ultimate litmus test for assuring good value to its shareholders.
The true responsibility of a company’s Board as well as its management lies in ensuring the efficient long-term performance of their company.
This can be maintained by keeping a competitive edge and IQ’s competitive edge lies in the continuous investments being made in our operating companies.
We are currently in the process of finalising with our strategic partners, some major projects which would lead to significant increases in our production capacity, help us introduce new product lines and also streamline our production processes.
The impact of all these initiatives is expected to be realised after about four years and we are optimistic that there is value waiting to be harvested in these businesses.
Although we cannot and will not influence the market which has its own processes to determine the prices, we shall definitely continue to strengthen the fundamentals of our companies and position them to capitalise on the opportunities that we foresee over the long term.
|q|How are you addressing the task of going up the value chain, bring global recognition to your product or service?
|a|For an organisation to grow and generate more value to its shareholders, we believe that it has to go up the value chain. We have a considerable number of expansion projects at different stages of implementation within our operating companies.
We are confident that the seriousness with which we are investing in our production plants and facilities in order to maintain our competitive advantages and secure our future prosperity, is one of the factors that will bring further recognition to our products and services.
Some of our significant achievements during this year are as follows: A Memorandum of Understanding has been signed between QASCO and the National Industrial and Mining Company (“SNIM”) of Mauritania, for a partnership in the “El-Aouj” project for the production of iron ore pellets.
QASCO has also acquired a strategic stake in Sphere Investments Ltd, further setting the stage for QASCO’s desire to penetrate the Mauritania iron ore industry.
QASCO has secured a stamp of quality from UK-based Certificate Authority for Reinforcing Steels (CARES) enabling it to further increase its competitiveness to garner a better share of the market.
QAPCO has opened an office in Beirut, Lebanon consistent with its policy of being as close as possible to its customers. This office will provide technical assistance to Lebanese companies dealing with LDPE.
|q|Do you feel there has to be easier movement of labour, to increase productivity and competitiveness?
|a|Generally the free movement of all the factors of production and the resultant products will ensure the efficient and effective use of resources and help increase productivity as well as competitiveness.
To be able to successfully handle the significant economic growth as well as future growth projections, Qatar has made many changes to its regulations as well as policies to attract labour as well as skilled manpower from the Arab region as well as from different parts of the world.
Besides, the laws of demand as well as supply of labour will bring about a natural equilibrium in any market.
|q|What are the qualities that an aspiring CEO should possess?
|a|This is quite a subjective one to respond! As you will rightly appreciate, different situations as well as different business environments require different set of qualities to be effective and it is difficult to standardise.
However, in my view, some of the qualities that an aspiring CEO should possess are:
Ability to draw a clear vision of the future and be able to steer the organization towards it.
Have a high degree of knowledge about the trends, practises and policies affecting the industry and business.
Must have a good understanding of business environment, strategic planning, economics and financial processes.
Must have a high degree of technical as well as emotional competence. Ability to cope with changes and use it to proper advantage for the organisation
Must be an effective communicator (verbal as well as written, vertical as well as horizontal).
Must be a good motivator – must be able to inspire, motivate and persuade others to act accordingly.
|q|How has the company’s success changed your life?
|a|I am proud of my long association with QP during which time I had the opportunity to work in various areas and also the privilege of learning from experts in different areas of the petroleum industry.
I have grown with QP and closely watched the different stages of its evolution and I have always given it my best. QP and its senior management have also recognised my efforts as well as contributions and rewarded me with one of the most enviable jobs in Qatar as QP’s Director Finance.
I admit that I have achieved a fair share of successes in my career but it only makes me feel more humble and more resolute that we cannot rest on our laurels but we need to do much more for QP as well as to our beloved country.
Success is the result of total dedication, sincerity, hard work, integrity, honesty, ethical behaviour and above all, the blessings of God.
To me success is not a just a destination but a constant process to keep challenging oneself by raising the standards bar and keep improving and this is similar to the Japanese concept of Kaizen or continuous improvement.
|q|What kind of a management style do you believe in? Boss-centric or employee-centric? Are you inspired by any management guru?
|a|I believe in a pragmatic style of management that harnesses the benefits of teamwork which is the main characteristic of successful organisations. In today’s dynamic world, teamwork is the only way we can achieve and replicate successes in all that we do.
I keep reading management books on a regular basis to ensure that I remain up-to-date with the latest in management techniques and practises. It is difficult to designate any single person as my management guru since different authors have different ideas and most of these are quite appealing.
I think one should ideally choose good ideas from different authors and put them into practise depending on the unique set of circumstances that one is faced with.
A couple of concepts that are time tested and worth mentioning are ‘management by objectives’ and ‘management by exception’ which helps an organisation to clearly focus on its main objectives, saves critical management time and efforts by drawing their attention to significant deviations and nurtures teamwork and proper empowering of employees.
Lateral Thinking, Business Strategies, Global Economy, Virtual Organization are some of the other management concepts that have also emerged over time.
One of the concepts that is very close to my heart is called ‘Corporate Governance’ and this concept is also a hot topic that dominates discussion in many board rooms as well as management meetings.
‘Corporate Governance’ can be defined as the system by which business corporations are directed and controlled.
The Corporate Governance structure specifies the distribution of rights as well as responsibilities amongst the different participants in the corporation, such as, the board, managers, shareholders and other stakeholders and spells out the rules and procedures for making decisions on corporate affairs.
This is a structured approach to the setting up of a company’s objectives, providing the means of attaining those objectives and monitoring performance on a regular basis.Good ‘Corporate Governance’ leads to better company performance, higher profitability and efficiency.
Besides, better ‘Corporate Governance’ is highly correlated with better operating performance as well as better market valuation of companies. The image of any country depends on the extent to which its companies follow good corporate governance principles.
Adherence to good corporate governance principles ensures a good rating for individual companies and by logical extension; it also positively impacts the image as well as rating of a country.
Other things remaining the same, investors are willing to pay a premium even above the fair market value of the shares of a company if the image as well as the rating of the country where it operates is good and is known to be business/investor friendly.
Although Corporate Governance is not a new concept, it has generated a lot of attention as well as interest these days owing to the recent collapse of formerly well-known major entities like Enron, WorldCom, Arthur Andersen, Barings etc.
Since Corporate Governance is a very vast subject, I shall only delve on a few good Corporate Governance principles that I believe will ensure the long term survival, success as well as value addition to the different stake holders of a company including its shareholders:
Ideally, the Board of Directors and the Management should have independent accountability and responsibility.
Transparency must be encouraged in the company’s affairs by ensuring that all material information is publicly disclosed.
Companies must follow international accounting standards and the auditors must follow international auditing standards.
Ensure that Audit Committees are set up for big corporations and that these committees comprise of members who have the relevant knowledge and experience to add value to the process. They also need to ensure that all company related communications with the auditors is through them and not through the Management.
Ensure that Compensation/Remuneration Committees are set up for big corporations and that these committees comprise of members who are independent of the management since they decide on the compensation levels of Management.
There should be absolute transparency about ownership and control of the company so that investors can make informed decisions.
Ensure that the company has a sound system of internal control to safeguard shareholders’ investments as well as the company’s assets.
|q|How do you unwind/ relax after a hard day’s work? Reading? Favourite Books? Do have any special/unusual hobbies?
|a|Despite a busy schedule, I like to keep abreast with what’s happening around me by quickly skimming through newspapers, magazines, books etc. My preferred financial newspaper is the Financial Times.
I mainly focus on topics like management, finance, marketing and economics. I also like to read about the securities markets around the world as well on the State of Qatar, the GCC and the world in general.
|q|Keeping fit has gone from being a fad to a necessity for successful CEO’s. How do you stay fit? Do you play any sport?
|a|Keeping fit health wise has a direct correlation on the efficiency as well as effectiveness of any manager and I try to keep fit.
Although I play tennis occasionally, I am more comfortable swimming or jogging. I like to jog along our beautiful corniche on Friday and Saturday mornings.
|q|Do you carry your work home? Or do you switch off your mobile and work tempo when you get home?
|a|Due to the sensitive nature of my work responsibilities and the portfolio that I handle, I can neither switch off my mind nor my cell phone when I leave my office!
Many important matters crop up that need my immediate attention, decision making or consultation with my colleagues/ senior management/ leadership.
Not being accessible when needed, may lead to serious implications, financial or otherwise. Despite all the work pressures, I thoroughly enjoy my job.
My family members are fully aware of the demands of my job and are quite understanding as well as co-operative. The support that I enjoy from my family is another important factor for my success and I am grateful to them.
This article is reproduced with special permission from Qatar Today - Qatar's only news, business and lifestyle magazine
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